Local Government Central

New City Impact on Unincorporated County Diversion Rates

When a new city incorporates, the annual report calculation for the affected unincorporated county should use the most accurate adjustment factor measurement levels for population and taxable sales. This choice depends on whether or not the Board has approved a revised base-year generation amount for the unincorporated county to remove the new city's waste stream from the unincorporated county's waste stream.

The employment adjustment factor is not an issue because only countywide employment data is used for the standard (default) Board calculation. Also, the Consumer Price Index (CPI) adjustment factor is not an issue because only metropolitan area or statewide CPI data are available.

The Department of Finance will publish a report-year population value for the unincorporated county that excludes the new city’s population. Also, the Board of Equalization will publish a report-year taxable sales value for the unincorporated county that excludes taxable sales transactions that occurred within the new city.

If Unincorporated County Base Year Is Not Revised

The unincorporated county should use jurisdiction-specific population and taxable sales in the annual report calculation because these factors will adjust base-year generation down to "remove" the new city's waste generation from the unincorporated county's estimated report-year waste generation.

Using countywide population and taxable sales factors will not adjust base-year generation down to correspond with the decrease in the unincorporated county's disposal caused by the new city's incorporation. The result would be an inaccurate estimated report-year disposal reduction.

If Unincorporated County Base Year Is Revised

The unincorporated county should use countywide population and taxable sales in the annual report calculation because these factors will not adjust base-year generation down a second time resulting in a lower diversion rate. The first "adjustment" is the base-year revision. The second "adjustment" would be the decrease in the unincorporated county's report-year population and taxable sales because of the incorporation.

If Unincorporated County Establishes New Base-Year After New City Incorporation

The unincorporated county may use jurisdiction-specific or countywide population and taxable sales in the annual report calculation. The unincorporated county’s new base-year does not include waste generated by the new city. The unincorporated county jurisdiction-specific population and taxable sales values for base-year and report-year do not include the new city’s population and taxable sales.

Summary

In an annual report diversion rate calculation for an unincorporated county, adjust for new city incorporation impact on the unincorporated county once and only once. The unincorporated county should adjust for new city incorporation impact with either (1) a base-year revision, or (2) jurisdiction-specific population and taxable sales, but not (1) and (2). However, if the unincorporated county establishes a new base-year after the new city incorporation, do not adjust for new city incorporation impact because the new city is not included in unincorporated county base-year or report-year values.

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Last updated: January 09, 2008