253 / 14.6% Yes votes ...... 1478 / 85.4% No votes

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Voter approval of the reorganization of the special districts in Cayucos would dissolve the Cayucos Fire Protection District, the Cayucos Sanitary District, and County Service Area No. 10 and form in their place the multi-service Cayucos Community Services District (CCSD). The proposed district is comprised of 643 acres located in northern coastal San Luis Obispo County, between the City of Morro Bay and the unincorporated community of Cambria.

The reorganization proposal was filed by a petition of application signed by 301 of the 1,972 (15.26 percent) registered voters within the reorganization boundaries. The proposal was conditionally approved by the San Luis Obispo Local Agency Formation Commission (LAFCO) on June 17, 2004, subject to an election to be held on November 2, 2004. A five member board of directors would also be elected on the same ballot.

The powers of the new Community Services District would initially be limited to those services provided by the dissolving districts, namely fire protection, sanitary, water treatment and distribution and street lighting. Additional services can only be added by the Board of Directors with the approval of LAFCO. All of the assets, liabilities, reserves, contracts, obligations, and property taxes (including special taxes), of the dissolving districts, will be transferred to the new community services district. Current employees of the dissolving districts will be given first right of refusal for employment with the new CCSD. The County of San Luis Obispo would enter into a joint powers agreement with the new CCSD to ensure a smooth transition of service responsibilities. The effective date of the reorganization, if approved by the voters, would be January 1, 2005.

The reorganization will only become effective if approved by more than fifty percent of those voting. In addition, Measure N-04, setting the appropriations (spending) limit for the new CCSD, also needs to be approved. The initial appropriations limit to be established by Measure N-04 would be set at an amount not to exceed the combined 2004-05 appropriations limits for the three dissolving districts.

In summary, a "yes" vote on this measure is a vote for the reorganization to dissolve the Cayucos Fire Protection District, the Cayucos Sanitary District, and County Service Area No. 10 and form in their place the multi-service Cayucos Community Services District (CCSD), providing Measure N-04 on this same ballot is also approved. A "no" vote on this measure is a vote against the reorganization to dissolve the Cayucos Fire Protection District, the Cayucos Sanitary District, and County Service Area No. 10 and form in their place the multi-service Cayucos Community Services District.

The above statement is an impartial analysis of Measure M-04. The Full Text of the Measure is the question as it appears on the ballot.

s/ Paul L. Hood, Executive Officer
Local Agency Formation Commission