How would city assets and liabilities be divided?
City assets such as roads, parks, buildings and equipment as well as city liabilities such as bonds and debts are divided by LAFCO in a manner similar to a divorce. LAFCO must divide city assets and liabilities fairly between the Valley and the rest of Los Angeles. Opponents who suggest that the Valley would have to raise taxes to purchase these assets from Los Angeles City are incorrect. LAFCO will equitably divide the city assets. The Valley will not have to pay for them. After all, taxes paid by Valley residents were partially used to pay for these city assets in the first place. That is why state law requires LAFCO to ensure that the Valley receives its fair share of city assets and liabilities.
