The passage of Proposition 1A in last week’s election will guard existing cities’ coffers from state raids but it may stifle the emergence of new cities, officials said…

Vehicle license fees, which make up part of a city’s revenue from the state, will remain the same for established cities but will be drastically reduced for newly incorporated cities under Proposition 1A.
    “That would be a tragedy on our part if the community of Castaic wanted to incorporate,” said Lloyd Carder, treasurer for the Castaic Area Town Council.
    Possible incorporation has been on the front burner for Castaic since the city of Santa Clarita began investigating the annexation of the Valencia Commerce Center. The center near Castaic Junction is in unincorporated territory developed by  Newhall Land and Farming Co.; town council members consider part of it to fall into Castaic.
    Both Gov. Arnold Schwarzenegger and the state controller supported Proposition 1A, which received 84 percent voter approval. The measure was touted as halting state raids on municipal coffers when the state runs short of money.
    “If it was a vote on sunshine and clean air it wouldn’t get a vote like that,” said Darren Hernandez, director of administrative services for Santa Clarita. “It doesn’t get us new revenue, but it helps us from being robbed and plundered.”

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