Mendocino LAFCO adopts $338,000 proposed budget for 2026–27, keeps apportionments flat and moves to biennial audits

The Mendocino Local Agency Formation Commission on April 6 approved a proposed FY 2026–27 budget of $338,000 and directed staff to distribute the proposal and schedule a final public hearing. Executive Officer Hinman told commissioners the proposal keeps member apportionments unchanged at $275,000, uses $53,000 of the commission’s projected unreserved cash balance (approximately $118,000 projected at year-end) to balance the budget, and retains a legal-reserve target of $50,000 and operational reserves equal to 25% of the operating budget.

Hinman described the work program priorities in the coming year: completion of a Laytonville County Water District study, continuation of a multi-year countywide fire and EMS provider study covering 18 special districts, and initiating a Mendocino Coast Healthcare District study likely to be outsourced. He said the commission anticipates workshops for the City of Point Arena and the Mendocino Coast Recreation and Park District and is monitoring potential activity on a City of Ukiah corporation-yard annexation tied to a county Board of Supervisors agenda item.

After commissioner questions about rate changes, A87 true-ups and reserve handling, the commission voted to approve the proposed budget and direct staff to schedule a public hearing on May 4 and a final adoption by June 15 per statutory deadlines under the Cortese-Knox-Hertzberg Act.

Votes at a glance
- Selection of officers (Item 3A): Motion to retain current slate (Chair Mo Mulheren; Vice Chair/Treasurer Gerald Ward) — moved by Commissioner Horsley, seconded; approved by roll call (majority present).
- Standing committee appointments (Item 3B): Motion to continue current executive and policies-and-procedures committee memberships — moved, seconded; approved by roll call.
- Approval of Feb. 2 meeting minutes (Item 4A): Motion to approve minutes — approved by roll call.
- Claims and consent items (Items 4B/4C): Motions to approve February claims and related consent agenda items — approved by roll call.
- Amendment No. 4 to executive officer services agreement with Hinman & Associates (Item 4D): Motion to approve — approved by roll call.
- Amendment to legal services agreement with the Law Offices of Marsha Burch (Item 4E): Motion to approve — approved by roll call.
- Proposed budget and work program (Item 5A): Motion to adopt resolution approving and transmitting the proposed budget and work program and scheduling a May 4 hearing — approved by roll call.
- Policy amendment on audit frequency (Item 7A): Motion to change audit schedule from annual to biannual — approved by roll call; commissioners cited potential cost savings and continued monthly/quarterly reporting as mitigation.

Commissioners and staff reiterated that a final budget hearing is scheduled for May 4 and that the commission will present its final budget by the June 15 statutory deadline. No litigation or policy changes beyond the audit-frequency amendment were adopted at the meeting.