LAFCO
Santa Margarita Fire Protection District
Read the report at Local Agency Formation Commissions ↗
Notice of Exemption
To:v Office of Planning and Research From: San Luis Obispo LAFCO
PO Box 3044, 1400 Tenth Street, Room 222 Rob Fitzroy, Executive Officer
Sacramento, CA 95812-3044 1042 Pacific St. Suite A
San Luis Obispo, CA 93401
(805) 781-5795
� County Clerk rfitzroy@slo .lafco .ca .gov
County of San Luis Obispo
County Government Center
San Luis Obispo, CA 93408
Project Title: LAFCO File No. 3-S-24 I Santa Margarita Fire Protection District Municipal Service Review and Sphere
of Influence Study
Project Location: Santa Margarita Fire Protection District (SMFPD) is located in the unincorporated area of San Luis
Obispo County in the Community of Santa Margarita.
Description of Nature, Purpose, & Beneficiaries of Project: The Local Agency Formation Commission (LAFCO) has
prepared a Municipal Service Review (MSR) and Sphere of Influence (SOI) Study for the Santa Margarita Fire
Protection District pursuant to Government Code Section 56430 and Section 56425. The SOI is a 20-year growth
boundary that includes areas that may be served by the District in the future. State law requires the MSR to be
completed either prior to or concurrent with, the SOI study. The MSR evaluates the public services provided by the
District and is used as the basis for any changes to the SOI. The Commission took action to reaffirm SMFPD's SOI to
remain coterminous to the service area boundary as depicted in Attachment A, Exhibit C of the LAFCO July 17,
2025, staff report found on the LAFCO website at P'>J. 1r1f . The Commission also established that
SMFPD exercises a number of general powers when operating the District as allowed under Public Health and
Safety Code Sections 13860 -13879.
Name of Public Agency Approving Project: The San Luis Obispo County LAFCO conducted a noticed public hearing
on July 17, 2025, at 9:00 a.m. in the Board of Supervisors Chambers in San Luis Obispo at the County Government
Center. Additional information is available on the LAFCO website at ht.p s_, i1 dltv ,u" .
Exemption Status: (check one)
D
Ministerial (Sec. 21080(b)(l); 15268); � Categorical Exemption: Section 15306
D D
Declared Emergency (Sec. 21080(b)(3); 15269(a)); Statutory Exemptions: State code number
D Emergency Project (Sec. 21080(b)(4); 15269 (b)(c)); � Other: General Rule Exemption, Section 15061(b)(3)
Reasons Why Project is Exempt: It has been determined with certainty that the MSR and SOI Study is categorically
exempt under Class 6, Section 15306 and the MSR and SOI Study also qualifies for a general rule exemption under
Section 15061(bl(3). There is no possibility that this MSR and SOI Study may have a significant effect on the
environment because there are no land use changes associated with the documents; therefore, the SMFPD MSR
and SOI Study is found to be exempt from CEQA pursuant to Section 15306 and Section 15061(b)(3) of the State
Guidelines. LAFCO will file this Notice of Exemption upon approval of the MSR and SOI Study.
I /
Date
Exhibit B | Resolution No. 2025 - 08
Page 1 of 7
Service Review Determinations per Government Code Section 56430
for the Santa Margarita Fire Protection District
1. Growth and population projections for the affected area
In 2020, the total estimated population within SMFPD was 1,291. At buildout, the
population is expected to be approximately 1,466, with an estimated buildout year of
2050. Although limited population growth is expected within the current SMFPD
boundary, growth induced by the nearby Santa Margarita Ranch (SMR) Subdivision is
expected to generate approximately 300 additional residents by 2032-2034. This
represents an approximate 23.2% increase in the existing population of the Santa
Margarita community, potentially resulting in service and capacity challenges for SMFPD.
The County plans to conduct a feasibility study and conceptual plan for the relocation of
County Fire Engine 40 to the community of Santa Margarita, which, once constructed,
would service the SMR Subdivision. Due to its isolated location with no close fire agency
neighbors, should the SMR Subdivision be developed prior to relocation of County Fire
Engine 40, the SMFPD would likely be the first agency to respond through Automatic Aid
Agreements. As the feasibility study and conceptual plan progress and construction of a
new County Fire Station in Santa Margarita is further examined, increased coordination
and communication amongst affected agencies are encouraged to prevent a potentially
inefficient provision of fire service.
2. The location and characteristics of any disadvantaged unincorporated communities
within or contiguous to the sphere of influence
SMFPD's SOI and service area boundary includes one area that meets the criteria for a
DUC as defined by Government Code Section 56033.5. Referred to as Santa Margarita
DUC Area #1, the DUC, which encompasses the entirety of the community of Santa
Margarita and neighboring rural areas, has an estimated median household income (MHI)
of $50,625, which is less than 80 percent of the statewide MHI, and contains
approximately 1,189 registered voters. It should be noted that the SMFPD SOI and service
Exhibit B | Resolution No. 2025 - 08
Page 2 of 7
area boundary is surrounded by a single property owner (the Santa Margarita Ranch), and
the identified DUC includes some agriculture-zoned areas with no registered voters.
Should the District seek to evaluate the surrounding area for annexation in the future,
disadvantaged communities should be considered further.
3. Present and planned capacity of public facilities and adequacy of public services,
including infrastructure needs or deficiencies
SMFPD is a single-purpose agency authorized to provide services under Health and Safety
Code Section 13800. SMFPD is dependent on Paid Called Firefighters (PCF) and has had
success in the recruitment and retention of volunteers to date. Given the total of 16 active
volunteers, the District should be able to achieve two to three volunteers per call. If PCF
recruitment is unsustainable in the future, and there is a need to provide full-time career
staff, SMFPD will need to seek additional revenue, most likely through a benefit
assessment.
In 2024, the District responded to a total of 200 incidents. With prompt turnout from on-
call PCF firefighters, the SMFPD can cover 100% of the District in a seven-minute response
time, which meets the "Suburban Service Level" response standard set by the County.
SMFPD has no close fire agency neighbors, with Automatic Aid provided by County Fire
Engine 40 on Parkhill Road, the City of Atascadero, and the Atascadero State Hospital.
Fire protection is provided from SMFPD’s fire station at 22375 El Camino Real, which was
constructed in 1964. SMFPD’s fire station has flooded several times, and they report that
the station is insufficient to support District operations and is in serious need of
replacement to meet current standards. The District has purchased a vacant lot on El
Camino Real to construct a new fire station; however, funding for construction is
insufficient. The District has been successful in obtaining grants for new equipment and
donations of used fire apparatus and currently has three apparatus in its fleet.
The County plans to conduct a feasibility study and conceptual plan for the relocation of
County Fire Engine 40 to the community of Santa Margarita. Construction of two new fire
stations (County Fire Engine 40 & SMFPD) in close proximity to one another may be
Exhibit B | Resolution No. 2025 - 08
Page 3 of 7
unnecessary and may result in an inefficient provision of service and expenditure of tax
dollars. As the feasibility study and conceptual plan progress and construction of a new
County Fire Station in Santa Margarita is further examined, increased coordination and
communication amongst affected agencies are encouraged to prevent a potentially
inefficient provision of fire service.
4. Financial ability of agencies to provide services
The District Board of Directors adopts an annual budget on a basis consistent with
generally accepted accounting principles. The District is primarily funded through
property taxes; however, with low comparative assessed value and a small number of
parcels, there has been a slow growth of revenue and limited opportunity for revenue
generation through benefit assessment. SMFPD's operating ratio, liquidity ratio, and net
position were used to analyze the District's financial health. SMFPD's operating ratio,
which measures the ratio of annual operating revenues to annual operating expenses,
indicated a healthy financial position in four of the last five years audited. The District's
liquidity ratio, which measures current assets against current obligations, indicated a
healthy financial position across all five audited years. The District's net position, which is
the difference between the agency's assets and liabilities, has increased 10.87% over the
last five-year audited period, indicating a positive financial trend in the District's financial
health.
Overall, the financial indicators used do indicate financial health; however, SMFPD’s
current revenues and financial position are not sufficient to fund a staffed fire station,
operational costs, or to fund a fire station replacement. Although the District has been
successful in acquiring grant funding to date, with rising costs, needed capital projects,
and a potentially unsustainable staffing model, the District is in a vulnerable financial
position. As the feasibility study and conceptual plan progress and construction of a new
County Fire Station in Santa Margarita is further examined, increased coordination and
communication amongst affected agencies are encouraged to prevent a potentially
inefficient provision of fire service.
Exhibit B | Resolution No. 2025 - 08
Page 4 of 7
5. Status of and opportunities for shared facilities
SMFPD works closely and cooperatively with neighboring fire agencies and maintains
automatic and mutual aid agreements to ensure adequate coverage and response times.
In addition, County Fire provides dispatch services to the District. The County plans to
conduct a feasibility study for the relocation of County Fire Engine 40 to the community
of Santa Margarita. As the feasibility study and conceptual plan progress and construction
of a new County Fire Station in Santa Margarita is further examined, increased
coordination and communication amongst affected agencies are encouraged to prevent
a potentially inefficient provision of fire service.
6. Accountability for community service needs, including governmental structure and
operational efficiencies
SMFPD is governed by a three-member Board of Directors, who are appointed to four-
year terms. District elections have largely gone uncontested for the last several election
cycles. Regularly scheduled monthly Board meetings are held and are open to the public.
The District’s agendas, board packets, minutes, and financial reports are posted on the
fire station window and made publicly available upon request. To maintain compliance
with Senate Bill 929, the Brown Act, and increase transparency to the community, the
District is encouraged to maintain an up-to-date website and annually update an SB 272
Enterprise System Catalog.
7. Any other matter related to effective or efficient service delivery
According to the conditions of approval associated with the SMR Subdivision, the
applicant shall provide for a new County Fire Station located near the project site. The
County Board of Supervisors has provided direction to County staff to complete a
feasibility study and conceptual plan for the relocation of County Fire Engine 40 on
Parkhill Road to the community of Santa Margarita, in close proximity to the current
SMFPD Fire Station, on El Camino Real, however timing of construction is unknown at this
time and the SMR Subdivision may be built prior to construction of the new County Fire
Station. Construction of the new County Fire Station may result in significant service and
capacity impacts for SMFPD. As the feasibility study and conceptual plan progresses and
Exhibit B | Resolution No. 2025 - 08
Page 5 of 7
construction of a new County Fire Station in Santa Margarita is further examined,
increased coordination and communication amongst affected agencies are encouraged
to prevent a potentially inefficient provision of fire service.
Sphere of Influence Determinations per Government Code Section
56425 for the Santa Margarita Fire Protection District
1. Present and planned land uses in the area, including agricultural and open-space lands.
Land uses within the SMFPD’s coterminous SOI and service area boundaries are subject
to the Santa Margarita Community Plan. The community of Santa Margarita is close to
being built out in its residential areas. Although it has enough land designated for a 100
percent increase in commercial development, commercial development is expected to be
slow. The primary land use designations within the District are Residential Suburban and
Residential Single Family. The District does not contain any land within the Agriculture or
Open Space land use categories; however, outside the District boundary, the nearby SMR
Subdivision, which consists of 111 residential lots, is within the Agriculture land use
category. The County plans to conduct a feasibility study and conceptual plan for the
relocation of County Fire Engine 40 to the community of Santa Margarita, which may
result in service and capacity impacts for SMFPD. No modifications to SMFPD’s SOI are
recommended at this time, however upon completion of the County’s feasibility study
and conceptual plan for the relocation of County Fire Engine 40 to Santa Margarita, LAFCO
shall conduct another MSR and SOI study for the District, and the SOI and service area
boundaries should be reconsidered at that time.
2. Present and probable need for public facilities and services in the area.
There is a present and probable need for fire protection services in the area as the
Community of Santa Margarita is in an isolated location with no close County Fire station
or other nearby fire agency neighbors. Automatic aid is provided by County Fire Station
40 on Parkhill Road, 5 miles east on Highway 58. The next closest mutual aid fire stations
are the City of Atascadero and Atascadero State Hospital, which are both 7 miles north.
The closest ambulance responds from Atascadero, approximately 14 minutes away.
Exhibit B | Resolution No. 2025 - 08
Page 6 of 7
The County plans to conduct a feasibility study and conceptual plan for the relocation of
County Fire Engine 40 to the community of Santa Margarita, which may result in service
and capacity impacts for SMFPD. No modifications to SMFPD’s SOI are recommended at
this time, however upon completion of the County’s feasibility study and conceptual plan
for the relocation of County Fire Engine 40 to Santa Margarita, LAFCO shall conduct
another MSR and SOI study for the District, and the SOI and service area boundaries
should be reconsidered at that time.
3. Present capacity of public facilities and adequacy of public services that the agency
provides or is authorized to provide.
SMFPD is a single-purpose agency authorized to provide services under Health and Safety
Code Section 13800. SMFPD is dependent on Paid Called Firefighters (PCF) and has had
success in the recruitment and retention of volunteers to date. Given the total of 16 active
volunteers, the District should be able to achieve two to three volunteers per call. If PCF
recruitment is unsustainable in the future, and there is a need to provide full-time career
staff, SMFPD will need to seek additional revenue, most likely through a benefit
assessment.
In 2024, the District responded to a total of 200 incidents. With prompt turnout from on-
call PCF firefighters, the SMFPD can cover 100% of the District in a seven-minute response
time, which meets the "Suburban Service Level" response set by the County. SMFPD has
no close fire agency neighbors, with Automatic Aid provided by County Fire Engine 40,
the City of Atascadero, and the Atascadero State Hospital.
Fire protection is provided from SMFPD’s fire station at 22375 El Camino Real, which was
constructed in 1964. SMFPD’s fire station has flooded several times, and they report that
the station is inadequate to support District operations and is in serious need of
replacement. The District has purchased a vacant lot on El Camino Real to construct a new
fire station; however, funding for construction is insufficient. The District has been
successful in obtaining grants for new equipment and donations of used fire apparatus
and currently has three apparatus in its fleet.
Exhibit B | Resolution No. 2025 - 08
Page 7 of 7
The County plans to conduct a feasibility study and conceptual plan for the relocation of
County Fire Engine 40 to the community of Santa Margarita, which may result in service
and capacity impacts for SMFPD. No modifications to SMFPD’s SOI are recommended at
this time, however upon completion of the County’s feasibility study and conceptual plan
for the relocation of County Fire Engine 40 to Santa Margarita, LAFCO shall conduct
another MSR and SOI study for the District, and the SOI and service area boundaries
should be reconsidered at that time.
4. Existence of any social or economic communities of interest in the area if the
commission determines that they are relevant to the agency.
There are no social or economic communities of interest within the District service area
boundary.
5. For an update of the sphere of influence of a city or special district that provides public
facilities or services related to sewers, municipal and industrial water, or structural fire
protection, the present and probable need for those public facilities and services of any
disadvantaged unincorporated communities within the existing sphere.
SMFPD's coterminous SOI and service area boundary includes one area that meets the
criteria for a DUC as defined by Government Code Section 56033.5. Referred to as Santa
Margarita DUC Area #1, the DUC, which encompasses the entirety of the community of
Santa Margarita and neighboring rural areas, has an estimated median household income
(MHI) of $50,625, which is less than 80 percent of the statewide MHI, and contains
approximately 1,189 registered voters. It should be noted that the SMFPD SOI and service
area boundary is surrounded by a single property owner (the Santa Margarita Ranch), and
the identified DUC includes some agriculture-zoned areas with no registered voters. No
modifications to SMFPD’s SOI are recommended at this time, however upon completion
of the County’s feasibility study and conceptual plan for the relocation of County Fire
Engine 40 to Santa Margarita, LAFCO shall conduct another MSR and SOI study for the
District, and the SOI and service area boundaries should be reconsidered at that time.
Santa Margarita Fire Protection District
Municipal Service Review
and Sphere of Influence Study
Prepared by
The San Luis Obispo Local Agency Formation Commission
Adopted July 17, 2025
Resolution No. 2025-08
Santa Margarita Fire Protection District 2
MSR & Sphere Study
TABLE OF CONTENTS
About LAFCO _________________________________________________________ 4
Authority and Objectives ___________________________________________________________ 4
Regulatory Responsibilities _________________________________________________________ 4
Planning Responsibilities ___________________________________________________________ 5
LAFCO Decision-Making ____________________________________________________________ 6
SLO LAFCO ______________________________________________________________________ 7
Acknowledgments ________________________________________________________________ 8
DISTRICT MSR & SPHERE STUDY __________________________________________ 9
Overview _____________________________________________________________________ 9
At A Glance __________________________________________________________________ 10
Background __________________________________________________________________ 10
Sphere of Influence & Service Area Boundary _______________________________________ 11
Population Profile _____________________________________________________________ 12
Present and Planned Land Use ___________________________________________________ 17
Accountability ________________________________________________________________ 18
Finance ______________________________________________________________________ 19
Services & Capacity ____________________________________________________________ 24
Shared Facilities & Other Matters Related to Efficient Service Delivery ___________________ 30
Determinations ______________________________________________________ 34
Municipal Service Review Determinations ____________________________________________ 34
Santa Margarita Fire Protection District 3
MSR & Sphere Study
List of Figures
Figure 1: SMFPD Service Area Boundary ................................................................................................ 12
Figure 2: SOI Amendment & Annexation No. 1 to CSA 23 Vicinity Map, SMR Subdivision ................... 14
Figure 3: Santa Margarita DUC Map ....................................................................................................... 16
Figure 4: Land Use Designations within SMFPD ..................................................................................... 18
Figure 5: Revenues vs. Expenditures ...................................................................................................... 21
Figure 6: Operating Ratio (FY 2019-2020 to FY 2023-2024) ................................................................... 21
Figure 7: Liquidity Ratio (FY 2019-2020 to FY 2023-2024) ..................................................................... 23
Figure 8: Heat Map of Incident Locations in SMFPD .............................................................................. 27
Figure 9: SMFPD Response Times ........................................................................................................... 28
Figure 10: Surrounding Station Response Times .................................................................................... 29
Figure 11: Proposed Relocation Site for County Fire Engine 40 ............................................................. 31
List of Tables
Table 1: District Profile ........................................................................................................................... 10
Table 2: SMFPD Board of Directors ........................................................................................................ 18
Table 3: SMFPD Property Tax Allocation ................................................................................................ 20
Table 4: Audited Assets .......................................................................................................................... 22
Table 5: Audited Liabilities ...................................................................................................................... 23
Table 6: Audited Net Position ................................................................................................................. 24
Table 7: SMFPD Apparatus Inventory ..................................................................................................... 30
Santa Margarita Fire Protection District 4
MSR & Sphere Study
ABOUT LAFCO
Authority and Objectives
Local Agency Formation Commissions (LAFCOs) were established in 1963 and are considered regional
subdivisions of the State of California responsible for providing regional growth management services
in all 58 counties. LAFCOs’ authority is codified under the Cortese-Knox-Hertzberg Local Government
Reorganization Act of 2000 (CKH), with principal oversight provided by the Assembly Committee on
Local Government. LAFCOs are comprised of locally elected and appointed officials with regulatory and
planning powers delegated by the Legislature to coordinate and oversee the establishment, expansion,
and organization of cities and special districts and their municipal service areas.
Regulatory Responsibilities
LAFCOs’ principal regulatory responsibility involves approving or disapproving all jurisdictional changes
involving the establishment, expansion, and reorganization of cities, towns, and most special districts
in California. The Government Code defines “special district” to mean any agency of the State formed
pursuant to general law or special act for the local performance of governmental or proprietary
functions within limited boundaries. All special districts in California are subject to LAFCO oversight
with the following exceptions: school districts, community college districts, assessment districts,
improvement districts, community facilities districts, and air pollution control districts. LAFCOs are also
tasked with overseeing the approval process for cities and special districts to provide new or extended
services beyond their jurisdictional boundaries through contracts, agreements, or annexation. LAFCOs
also oversee special district actions to either activate new service functions and service classes or divest
existing services. LAFCOs generally exercise their regulatory authority in response to applications
submitted by affected agencies, landowners, or registered voters. Recent amendments to the
Government Code also authorize and encourage LAFCOs to initiate jurisdictional changes to form,
consolidate, and dissolve special districts consistent with community needs.
Santa Margarita Fire Protection District 5
MSR & Sphere Study
Planning Responsibilities
LAFCOs inform their regulatory actions, in part, through two central planning responsibilities: (a)
making sphere of influence determinations and (b) preparing municipal service reviews. With these
reports and other relevant information in the record, LAFCO makes decisions on a variety of matters,
including but not limited to annexations to cities and special districts, city incorporations, activation of
powers for special districts, dissolutions of special districts, etc.
Sphere of Influence
A Sphere of Influence (SOI) is defined by Government Code Section 56425 as a plan for the probable
physical boundary and service area of a local agency or municipality. An SOI is generally considered a
20-year, long-range planning tool. LAFCOs establish, amend, and update spheres for all applicable
jurisdictions in California every five years, or as necessary. When updating an SOI, LAFCOs are required
to consider and prepare a written statement of their determinations concerning each of the following
five factors:
1) The present and planned land uses in the area, including agricultural and open-space lands.
2) The present and probable need for public facilities and services in the area.
3) The present capacity of public facilities and adequacy of public services that the agency provides
or is authorized to provide.
4) The existence of any social or economic communities of interest in the area if the commission
determines that they are relevant to the agency.
5) For an update of a sphere of influence of a city or special district that provides public facilities
or services related to sewers, municipal and industrial water, or structural fire protection, that
occurs pursuant to subdivision (g) on or after July 1, 2012, the present and probable need for
those public facilities and services of any disadvantaged unincorporated communities within
the existing sphere of influence.
The intent in preparing the written statements is to orient LAFCOs in addressing the core principles
underlying the sensible development of local agencies consistent with the anticipated needs of the
affected communities.
Santa Margarita Fire Protection District 6
MSR & Sphere Study
Municipal Service Reviews
Municipal Service Reviews (MSR), in contrast, are intended to inform, among other activities, SOI
determinations. LAFCOs also prepare MSRs regardless of making any specific sphere determinations in
order to obtain and furnish information to contribute to the overall orderly development of local
communities. When updating an MSR, LAFCOs are required to consider and prepare written
statements of their determinations concerning each of the following seven factors:
1) Growth and population projections for the affected area.
2) The location and characteristics of any disadvantaged unincorporated communities within or
contiguous to the sphere of influence.
3) Present and planned capacity of public facilities, adequacy of public services, and infrastructure
needs or deficiencies, including needs or deficiencies related to sewers, municipal and industrial
water, and structural fire protection in any disadvantaged, unincorporated communities within
or contiguous to the sphere of influence.
4) Financial ability of agencies to provide services.
5) Status of, and opportunities for, shared facilities.
6) Accountability for community service needs, including governmental structure and operational
efficiencies.
7) Any other matter related to effective or efficient service delivery, as required by commission
policy.
LAFCO Decision-Making
LAFCO decisions are legislative in nature and, therefore, are not subject to an outside appeal process;
only courts can overturn LAFCO decisions. LAFCOs also have broad powers with respect to conditioning
regulatory and planning approvals, so long as not establish any terms that directly affect land use
density or intensity, property development, or subdivision requirements.
LAFCOs are generally governed by a board comprised of county supervisors, city council members,
independent special district members, a representative of the general public, and an alternate member
for each category. SLO LAFCO is governed by a seven-member board comprised of two county
supervisors, two city council members, two independent special district members, one representative
Santa Margarita Fire Protection District 7
MSR & Sphere Study
of the general public, and an alternate member for each category. All members serve four-year terms
and must exercise their independent judgment on behalf of the interests of residents, landowners, and
the public as a whole. LAFCO members are subject to standard disclosure requirements and must file
annual statements of economic interests. LAFCOs are independent of local government with their own
staff. All LAFCOs, nevertheless, must appoint their own Executive Officers to manage agency activities
and provide written recommendations on all regulatory and planning actions before the Commission.
In addition, all LAFCOs must also appoint their own legal counsel.
SLO LAFCO
Regular Commissioners
Chair Steve Gregory City Member
Vice Chair Heather Moreno County Member
Dawn Ortiz-Legg County Member
Ed Waage City Member
Edy Eby Special District Member
Navid Fardanesh Special District Member
David Watson Public Member
Alternate Commissioners
Bruce Gibson County Member
Carla Wixom City Member
Vacant Special District Member
Michael Draze Public Member
Staff
Rob Fitzroy Executive Officer
Imelda Marquez-Vawter Senior Analyst
Morgan Bing Analyst
Melissa Morris Commission Clerk
Holly Whatley Legal Counsel
Santa Margarita Fire Protection District 8
MSR & Sphere Study
Contact Information
San Luis Obispo LAFCO’s office is located at 1042 Pacific St, Suite A, in the City of San Luis Obispo. The
LAFCO office is open by appointment to discuss proposals or other matters and can be scheduled by
calling 805-781-5795. Additional information is also available online by visiting slo.lafco.ca.gov.
Acknowledgments
San Luis Obispo LAFCO gratefully acknowledges the time and effort of staff with the Santa Margarita
Fire Protection District in assisting with the preparation of this report, and includes, but is not limited
to, the following:
Chief Robert Murach
Santa Margarita Fire Protection District 9
MSR & Sphere Study
DISTRICT MSR & SPHERE STUDY
Overview
This report represents San Luis Obispo LAFCO’s scheduled Municipal Service Review (MSR) for the
Santa Margarita Fire Protection District (SMFPD or District), located in the eastern portion of San Luis
Obispo County (County). The report has been prepared by staff in accordance with the requirements
of the Government Code. The purpose of this report is to produce an independent assessment of
municipal services in this area over the next five years or as necessary, relative to the Commission’s
regional growth management duties and responsibilities as established by the State Legislature. This
includes evaluating the current and future relationship between the availability, demand, and
adequacy of municipal services within the service areas of the SMFPD, subject to the Commission’s
oversight. The information generated as part of the report will be used by the Commission in (a) guiding
subsequent sphere of influence updates, (b) informing future boundary changes, and – if merited – (c)
initiating government reorganizations, such as special district formations, consolidations, and/or
dissolutions.
The period for collecting data to inform the Commission’s analysis and related projections on
population growth and service demands has been set to cover any major updates and changes since
the last time the MSR was updated in 2014. The financial analysis has been set to cover the last five-
year audited fiscal year period. The timeframe for the report has been generally oriented to cover the
next five to seven-year period, with the former (ten years) serving as the analysis anchor as
contemplated under State law.
The document outline serves to inform all the state-mandated requirements outlined in Government
Code Sections 56430 and 56425. Written determinations have been included as the concluding chapter
of this document.
Santa Margarita Fire Protection District 10
MSR & Sphere Study
At A Glance
Table 1: District Profile
Agency Name Santa Margarita Fire Protection District
Formation 1921
Office Location 22375 El Camino Real, Santa Margarita, CA 93453
Website https://santamargaritafiredept.org/
Types of Services Fire Protection and Suppression Service & Medical Response
Chief Officers Robert Murach, Fire Chief
Bobby Guy, Deputy Fire Chief
Number of Staff 16 Paid Call Firefighters
Apparatus 3
District Service Area 307 acres (0.5 square miles)
Population Served 1,291 residents
Public Meetings The Board of Directors meets on the second Wednesday of each month
at 5:00 PM at 22375 El Camino Real, Santa Margarita, CA 93453
Board of Directors Three members elected to four-year terms
Background
Fire Protection Districts are authorized under Section 13800 of the California Health and Safety Code
to provide a range of emergency response services, including wildfire and community (structure) fire
protection, medical aid, technical rescue, hazardous materials containment and control, and general
public assistance responses. From a statewide perspective, over the past 50 years, changes in the level
of service provided by fire protection districts and policy changes at the federal and state levels have
exponentially increased the cost of providing fire service. The impact of unfunded mandates is evident
in increasing labor costs, service and supply costs, and capital facilities and equipment costs. Fire
service costs are primarily recovered through property taxes and fees for service; however, despite
increases in the level of service and the growing costs to provide that service, mechanisms available to
fire protection districts for recovering costs have not been responsive to these increases. While special
taxes and assessments are available, they are difficult to implement and unreliable for long-term
Santa Margarita Fire Protection District 11
MSR & Sphere Study
planning. Funding shortages have led to brownouts, increased response times, and deferred capital
projects.
Many of the same fire service challenges experienced statewide are also present within San Luis Obispo
County. Previously, there were ten fire protection districts in the County; however, at this time, the
Santa Margarita Fire Protection District (SMFPD) is the single remaining fire protection district. The
District was formed by petition and County Board of Supervisors resolution in 1921 with the purpose
of providing fire protection services to the community of Santa Margarita. SMFPD was inactive or
operating at minimal service levels between 1925 and 1949. Since 1949, the District has provided
volunteer fire protection to District residents. The following report provides a discussion on SMFPD’s
present and long-term service demands and resource capabilities in the context of the broader funding
and service-related challenges and constraints experienced by fire protection districts throughout the
state.
Sphere of Influence & Service Area Boundary
SMFPD’s existing Sphere of Influence (SOI), last adopted in November 2014, is coterminous with its
service area boundary and is depicted in Figure 1 below. The District covers approximately 307 acres
and includes the urban area of Santa Margarita.
Santa Margarita Fire Protection District 12
MSR & Sphere Study
Figure 1: SMFPD Service Area Boundary
Population Profile
Based on the 2020 Census data, the Santa Margarita Census Designated Place (CDP), which closely
coincides with the SMFPD and County Service Area 23 (CSA 23) service area boundaries, has an
estimated population of 1,291 and approximately 564 total housing units. The build-out population,
defined as the maximum population that can occur considering zoning and land use designations, is
estimated to be 1,466, with an estimated buildout year of 20501.
On January 16, 2025, LAFCO approved an SOI amendment and annexation of the Santa Margarita Ranch
Agricultural Residential Cluster Subdivision Project (SMR Subdivision) into CSA 23. The SMR Subdivision
1 SLOCOG, 2050 Regional Growth Forecast for San Luis Obispo County, June 2017
Santa Margarita Fire Protection District 13
MSR & Sphere Study
is 143 acres, consisting of 111 residential parcels located southeast of the SMFPD and CSA 23 and south
of Highway 58 (See Figure 2). This action did not augment the SMFPD boundary, and as such, the SMR
Subdivision is not within the formal service area boundary of the SMFPD. The Environmental Impact
Report prepared for the SMR Subdivision used a population generation factor of 2.7 persons per
household to project a population of approximately 300 residents at full buildout of the 111 residential
lots2. Full buildout is expected to occur in 2032-2034. This represents an approximate 23.2% increase
in the existing population of the Santa Margarita community. Although this development will occur
outside of the SMFPD service area boundary, due to the isolated location of the SMR Subdivision with
no close County Fire stations or other nearby fire agency neighbors, the SMFPD would likely be the first
fire agency to respond to the SMR Subdivision through Automatic Aid Agreements. Potential impacts
to SMFPD’s service capacity are further discussed in the Shared Facilities & Other Matters Related to
Efficient Service Delivery Section.
2 Final Environmental Impact Report for the Santa Margarita Ranch Agricultural Residential Cluster Project and Future
Development Program, State Clearinghouse Number 2004111112
Santa Margarita Fire Protection District 14
MSR & Sphere Study
Figure 2: SOI Amendment & Annexation No. 1 to CSA 23 Vicinity Map, SMR Subdivision
Santa Margarita Fire Protection District 15
MSR & Sphere Study
Disadvantaged Unincorporated Communities
LAFCO is required to evaluate Disadvantaged Unincorporated Communities (DUCs) as part of this MSR,
including the location and characteristics of any such community. Per California Senate Bill 244, a DUC
is defined as any area with 12 or more registered voters where the median household income (MHI) is
less than 80 percent of the statewide MHI. The legislative intent is to prohibit selective annexations by
cities of tax-generating land uses while leaving out underserved, inhabited areas with infrastructure
deficiencies and a lack of access to reliable potable water, wastewater, and fire protection services.
SMFPD provides fire protection service and is responsible for ensuring that this service is adequately
provided to the community.
To identify the MHI for locations within the unincorporated areas of the County, and to identify those
that meet the DUC MHI threshold, LAFCO used U.S. Census American Community Survey (ACS) five-
year reports for Census Block Groups (CBG) and Census Designated Places (CDP) data. Once a CBG or a
CDP meets the DUC MHI threshold, LAFCO then verifies that those areas are inhabited as specified in
Government Code Section 56033.5 using registered voter data from the County Clerk-Recorder.
The estimated MHI for Census Block Group 127.05.3, which encompasses the entirety of the
Community of Santa Margarita and neighboring rural areas, is $50,625, which is less than 80 percent
of the statewide MHI in 2020 of $84,097. Census Block Group 127.05.3 was also determined to be
inhabited, with approximately 1,189 registered voters. Therefore, LAFCO identified one DUC at the CBG
level, located within and contiguous to SMFPD’s coterminous SOI and service area boundaries as seen
in Figure 3 below. It should be noted that the SMFPD SOI and service area boundary is surrounded by
a single property owner (the Santa Margarita Ranch), and the identified DUC includes some agriculture-
zoned areas with no registered voters. Should the District seek to evaluate the surrounding area for
annexation, disadvantaged communities should be considered further.
Social or Economic Communities of Interest in the Area
There are no district-relevant social or economic communities of interest in the area served.
Santa Margarita Fire Protection District 16
MSR & Sphere Study
Figure 3: Santa Margarita DUC Map
Santa Margarita Fire Protection District 17
MSR & Sphere Study
Present and Planned Land Use
Land uses within the SMFPD boundaries are subject to the Santa Margarita Community Plan adopted
in February 2014, which is Part III of the Land Use and Circulation Element of the County General Plan.
This plan is consistent with the other elements of the County’s General Plan. All other County plans,
policies, and programs that involve the community of Santa Margarita and are subject to the County
General Plan are to be consistent with and implement this plan. The location and distribution of the
land uses within the District are presented below in Figure 4.
The community of Santa Margarita is close to being built out in its residential areas. Although it has
enough land designated for a 100 percent increase in commercial development, commercial
development is expected to be slow. The primary land use designations within the District are
Residential Suburban and Residential Single Family. The SMFPD does not contain any land within the
Agriculture or Open Space land use categories.
As stated in previous sections, on January 16, 2025, LAFCO approved an SOI amendment and
annexation of the SMR Subdivision into CSA 23. The SMR Subdivision is 143 acres, consisting of 111
residential parcels located southeast of the SMFPD and CSA 23 and south of Highway 58 (See Figure 2
above). The zoning will remain within the agricultural land use category. This action did not augment
the SMFPD boundary, and as such, the SMR Subdivision is not within the formal service area boundary
of the SMFPD (more details on this topic are discussed in the Shared Facilities & Other Matters Related
to Efficient Service Delivery Section).
Santa Margarita Fire Protection District 18
MSR & Sphere Study
Figure 4: Land Use Designations within SMFPD
Accountability
SMFPD’s governance authority is established under the Fire Protection District Law of 1961 and
codified under Health and Safety Code Sections 13800. Governance of SMFPD is independently
provided by a three-member Board of Directors that is elected to four-year terms, see Table 2. District
elections have largely gone uncontested for the last several election cycles. The Board of Directors
meets on the second Wednesday of each month at 5:00 PM at 22375 El Camino Real, Santa Margarita,
CA 93453.
Table 2: SMFPD Board of Directors
Board Member Title Term Expiration
John Wilkins President December 2028
Beth Gorrill Secretary December 2026
Joel Switzer Director December 2026
Santa Margarita Fire Protection District 19
MSR & Sphere Study
The District’s agendas, board packets, minutes, and financial reports are posted on the fire station
window and made publicly available upon request. To maintain compliance with Senate Bill 929, the
Brown Act, and increase transparency to the community, the District is encouraged to maintain an up-
to-date website and annually update an SB 272 Enterprise System Catalog.
Finance
LAFCO is required to make determinations regarding the financial ability of the SMFPD to provide public
services. This section provides a general overview of financial health and provides a context for the
financial determinations. LAFCO uses three financial indicators to help evaluate the District’s general
health; those are an assessment of Revenues & Expenditures (Operating Ratio), Assets and Liabilities
(Liquidity Ratio), and Net Position. The audited financial statement reports from the District for the
fiscal years (FY) 2019-2020 through FY 2023-2024 are the primary source of information for this section.
Budget
The District Board of Directors adopts an annual budget on a basis consistent with generally accepted
accounting principles. After the budget is approved, the appropriations can be added to, subtracted
from, or changed only by a Board resolution. All such changes must be within the revenues and reserves
estimated as available in the final budget or within revised revenue estimates as approved by the
Board. The District’s annual budgets show revenues at least equal to expenditures without relying on
reserves.
Audited Financial Statements
SMFPD hires an outside accounting firm to perform an annual audit in accordance with established
governmental accounting standards. This includes auditing SMFPD’s financial statements with respect
to verifying overall assets, liabilities, and net position. These audited statements provide quantitative
measurements in assessing SMFPD’s short and long-term fiscal health with a specific focus on
delivering its active service functions. LAFCO has used the five most recent audited financial statements
to conduct its evaluation of the District’s Financial Health, separated into four categories (Revenues
and Expenditures, Agency Assets, Agency Liabilities, and Agency Net Position). Financial Conclusions
have also been included, based on the most recent audited Fiscal Year ending on June 30, 2024.
Santa Margarita Fire Protection District 20
MSR & Sphere Study
Revenues and Expenditures
The District is primarily funded through property taxes. Table 3 below depicts the property tax growth
trend in SMFPD over the last five years. The District has a comparatively low assessed value and a small
number of parcels, resulting in slow growth of revenue and limited potential for revenue generation
opportunities through benefit assessment.
Table 3: SMFPD Property Tax Allocation
Fiscal Year 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024
Property Tax $117,630 $120,453 $133,163 $142,285 $148,084
Allocation
Growth % 2.77% 2.4% 10.55% 6.85% 4.08%
The number of parcels in the District impacts the ability of the District to pass a parcel-based benefit
assessment fee. In 2018, an analysis was conducted to determine the fee burden per parcel based on
generating an arbitrary amount of $500,000 in revenue for the District. With approximately 522
parcels, a flat fee of $961 per parcel (all parcels charged the same amount) is required to generate
$500,000 in the SMFPD. Values may vary depending on the number of exempt parcels.
In addition to property tax, District revenues also include public facility fees, ambulance
reimbursements, interest income, grants, and donations. To date, SMFPD has been successful in
obtaining grants for new equipment and donations of used fire apparatus. As shown in Figure 5 below,
the District has experienced an overall increase in revenues from FY 2019-2020 to FY 2023-2024.
Similarly, the District’s total expenditures have experienced an overall increase in the last five fiscal
years, largely related to increases in the cost of services and supplies. Additionally, in October 2020,
the District began to make monthly payments of principal and interest on a $170,000 loan for a new
fire engine. The District does not have adequate annual revenue to set aside funds in a sinking fund
account for the replacement of fire apparatus and equipment.
Santa Margarita Fire Protection District 21
MSR & Sphere Study
Figure 5: Revenues vs. Expenditures
$350,000.00
$325,545.00
$300,000.00 $279,879.00
$241,997.00
$250,000.00
$218,920.00
$199,330.00
$200,000.00
$173,614.00
$162,956.00
$149,455.00 $143,892.00
$150,000.00 $129,459.00
$100,000.00
$50,000.00
$0.00
FY 19 -20 FY 20 -21 FY 21 -22 FY 22 -23 FY 23 -24
Total Revenue Total Expenditures
Figure 6 presents SMFPD’s operating ratios over the last five audited years, which measure the ratio of
annual operating revenues to annual operating expenses. Operating ratio is used as an indicator of the
District’s financial health. A ratio of 1.0 means the agency is breaking even, a ratio of less than 1.0
indicates insufficient operating revenue to cover operating expenses, and a ratio greater than 1.0
means an agency can pay all its operating expenses and has revenue left over to spend on other items.
Figure 6: Operating Ratio (FY 2019-2020 to FY 2023-2024)
FY 23 - 24 1.16
FY 22 - 23 1.21
FY 21 - 22 0.74
FY 20 - 21 1.21
FY 19 - 20 1.15
0 0.2 0.4 0.6 0.8 1 1.2 1.4
Santa Margarita Fire Protection District 22
MSR & Sphere Study
Agency Assets & Liabilities
An agency’s assets provide current, future, or potential economic benefit for the entity. An agency
asset is, therefore, something that is owned by the agency or something that is owed to the agency. In
this section, agency assets will be reviewed in two separate categories as defined below:
1) Current Assets: cash and other assets that are expected to be converted to cash within a year
2) Capital Assets: long-term investments that are not expected to become cash within an
accounting year
SMFPD’s audited assets at the end of FY 2023-2024 totaled $731,602 and are 5.6% higher than the
average year-end amount of $692,488 documented during the previous five-year audited period.
Assets classified as current, with the expectation they could be liquidated within a year, represented
49% of total assets, or $361,825, and are primarily associated with cash and cash equivalents. Assets
classified as capital assets make up the remainder of the total and are primarily attributed to
equipment and land. Overall, District assets have increased by 26% over the corresponding 5-year
audited period.
Table 4: Audited Assets
5-yr % 5-yr
FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24
Change Average
Current Assets $388,623 $291,353 $277,007 $324,857 $361,825 -6.90% $328,733
Capital Assets $190,315 $471,165 $414,375 $373,142 $369,777 94.30% $363,755
Total Assets $578,938 $762,518 $691,382 $697,999 $731,602 26.37% $692,488
An agency’s liability is something the agency owes, usually a sum of money. Liabilities are settled over
time through the transfer of economic benefits, including money, goods, or services. In this section,
agency liabilities will be reviewed in two separate categories as defined below:
1) Current Liabilities: are an agency's short-term financial obligations due to be paid within a year.
2) Other Non-Current Liabilities: are an agency’s long-term financial obligations that are due more
than a year away.
Santa Margarita Fire Protection District 23
MSR & Sphere Study
SMFPD’s audited liabilities at the end of FY 2023-2024 totaled $98,237 and were 6.3% lower than the
average year-end amount of $104,815 documented during the previous five-year audited period. This
is largely due to decreases in the District’s long-term liabilities related to a loan for a new fire engine.
Liabilities classified as current, which represent obligations owed in the near term, account for 46%, or
$45,094, of the total liabilities. Non-current liabilities represent the remaining total, or $53,143, and
are largely tied to payment of liabilities due after one year. Overall liabilities have increased significantly
by 1,181% over the corresponding 5-year audited period.
Table 5: Audited Liabilities
5-yr % 5-yr
FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24
Change Average
Current
$7,664 $15,989 $15,787 $18,041 $45,094 488% $20,515
Liabilities
Non-Current
- $145,533 $130,563 $92,259 $53,143 63.48% $105,375
Liabilities
Total
$7,664 $161,522 $146,350 $110,300 $98,237 1,181% $104,815
Liabilities
Figure 7 presents the District’s liquidity ratio over the last five-year audited period, which measures
current assets against current/near-term obligations. The liquidity ratio is another indicator of the
District’s financial health. A ratio of less than 1.0 indicates insufficient short-term resources to cover
short-term liabilities, and anything over 1.0 indicates good financial health (the higher the number, the
greater the degree of liquidity).
Figure 7: Liquidity Ratio (FY 2019-2020 to FY 2023-2024)
FY 23-24 50.70
FY 22-23 18.20
FY 21-22 17.50
FY 20-21 18.00
FY 19-20 8.00
0 10 20 30 40 50 60
Santa Margarita Fire Protection District 24
MSR & Sphere Study
Agency Net Position
The government-wide financial statements also utilize a net position presentation. Net position is the
difference between assets and liabilities and is one way to measure the District’s financial health or
financial position. Overtime increases or decreases in the District’s net assets are one indicator of
whether its financial health is improving or deteriorating. SMFPD’s audited net position at the end of
FY 2023-2024 totaled $633,365 and is 7.7% higher than the five-year average amount of $587,673. A
portion of the District’s net position, 58%, reflects its net investment in capital assets (e.g., land and
equipment), with the remainder categorized as unrestricted. Overall, the District’s net position has
increased by 10.87% over the corresponding 5-year audited period.
Table 6: Audited Net Position
5-yr % 5-yr
Category FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24
Change Average
Net
Investment in $190,315 $471,165 $414,375 $373,142 $369,777 94.30% $363,755
Capital Assets
Unrestricted $380,959 $129,831 $130,657 $214,557 $263,588 -30.81% $223,918
Total Net
$571,274 $600,996 $545,032 $587,699 $633,365 10.87% $587,673
Position
Services & Capacity
Active Services
SMFPD’s governance authority is established under the Fire Protection District Law of 1987 and
codified under Health and Safety Code Sections 13800. This principal act identifies a range of services
that a fire protection district may provide, and a complete listing of the powers afforded to fire
protection districts is located in Health and Safety Code Sections 13860 - 13879. Authorized services
granted to fire protection districts under current law include, but are not limited to:
• Fire protection services
Santa Margarita Fire Protection District 25
MSR & Sphere Study
• Rescue services
• Emergency medical services
• Hazardous material emergency response services
• Ambulance Services
• Any other services related to the protection of lives and property
• A district may enter into a mutual aid agreement with any federal or state agency, any city,
county, special district, or federally recognized Indian tribe
Government Code Section 56425 (i) provides that “when adopting, amending, or updating a sphere of
influence for a special district, the commission shall establish the nature, location, and extent of any
functions or classes of services provided by existing districts.” Government Code Section 56050.5
defines a latent service or power as “those services, facilities, functions, or powers authorized by the
principal act under which the district is formed, but that are not being exercised, as determined by the
commission pursuant to subdivision (i) of Government Code Section 56425.” Therefore, once the
Commission has established what services are being provided pursuant to § 56425 (i), all other services,
functions and powers become “latent services or powers” by operation of law. The SMFPD is authorized
to exercise all powers listed in Health and Safety Code Sections 13860 - 13879; as such, there are no
powers that are considered latent by operation of law.
The MSR and SOI Study provides discussion on present and long-term service demands and resource
capabilities of the local agency. LAFCO reviews and evaluates 1) the resources and services that are
currently available, and 2) the ability of the SMFPD to expand such resources and services in line with
increasing demands. An adequate ability to provide service should be documented to support areas in
the sphere envisioned for eventual annexation and service by a jurisdiction. If warranted, different
governance options may be reviewed for the District, including potential jurisdictional changes such as
consolidation, reorganization, and dissolution.
Staffing & Personnel
SMFPD is dependent on community members volunteering for Paid Call Firefighter (PCF) and Fire
Officer positions. The District has no career firefighters, and there are no firefighters on duty at the fire
station; however, PCFs must live within a five-minute response time to the District. The depth of
Santa Margarita Fire Protection District 26
MSR & Sphere Study
staffing for volunteer fire companies is important to provide a reliable response and sufficient depth
of force to mitigate incidents safely. The Insurance Service Office uses a ratio of three volunteers on
the roster to generate one responder. The SMFPD consists of 1 PCF Chief, 1 PCF Deputy Chief, 1 PCF
Captain, 1 PCF Lieutenant, and 12 Paid Call Firefighters. Given the total of 16 active volunteers, the
District should be able to achieve two to three volunteers per call, depending on all of the factors that
affect volunteer availability. A higher number on the roster, so that the District could meet the 2 in 2
out requirements for respiratory protection on structural fires, would suggest a roster of at least 12 or
more to fill key fire ground roles.
To date, the District reports success with recruiting and retaining PCFs; however, sustainability of the
current staffing model for the next five to ten years is predicated on the ability to recruit and retain
PCFs and develop experienced PCF staff into fire officers. If PCF recruitment is unsustainable in the
future, and there is a need to provide full-time career staff, SMFPD will need to seek additional revenue,
most likely through a benefit assessment.
Service Delivery & Performance
In 2024, the District responded to 200 total incidents. The District contracts with County Fire for
dispatch services, and the majority of calls received by the SMFPD are for medical emergencies and
public assistance. The following map, prepared by County Fire, represents the density of incidents in a
given location of the District, known as a “heat map”. The District boundary is represented by a red
line. The shades of purple and blue represent incidents at that location. Light shades indicate few calls
for service at that location, while the deep purple represents a high volume of calls at the same
location.
Santa Margarita Fire Protection District 27
MSR & Sphere Study
Figure 8: Heat Map of Incident Locations in SMFPD3
The map in Figure 9, prepared by County Fire, represents the response times from only the SMFPD
Station on El Camino Real. The County Fire Strategic Plan Level of Service Analysis recommends a
minimum of a “Suburban Service Level” for Santa Margarita, which equates to an eight-minute
response time for 90% of the District. With prompt turnout from on-call PCF firefighters, the SMFPD
can cover 100% of the District in a seven-minute response time. The shaded green area represents a
drive time of up to seven minutes, the blue shaded area represents a drive time of over seven minutes
and under eight minutes, while the yellow shaded area represents a drive time of eight minutes to
fifteen minutes. In all cases, three minutes are added for “reflex” time, which includes the time
required to dispatch the call, assemble the crew, don the appropriate gear for the response, and get
3 2024 CAL FIRE/San Luis Obispo County Fire Department ECC Workload Summary
Santa Margarita Fire Protection District 28
MSR & Sphere Study
out the door. Reflex times for an all PCF operation can vary widely depending on the availability and
location of the firefighter when the response is initiated.
Figure 9: SMFPD Response Times4
The following map, prepared by County Fire, uses the same values as the map in Figure 9; however,
this map removes SMFPD Station from the analysis and considers automatic and mutual aid response
times from nearby fire stations. SMFPD has no close fire agency neighbors; however, Automatic aid is
provided by Cal Fire/County Fire Station 40 (Parkhill Road), which is 5 miles east on Highway 58. The
next closest mutual aid fire stations are the City of Atascadero and the Atascadero State Hospital, which
are both 7 miles north of the District. The closest ambulance responds from Atascadero, approximately
4 Map produced and provided by CAL FIRE/San Luis Obispo County Fire Department
Santa Margarita Fire Protection District 29
MSR & Sphere Study
14 minutes away. The automatic or mutual aid stations can provide a response to the District in a time
that meets County standards for a suburban level of service (8 minutes).
Figure 10: Surrounding Station Response Times5
Capital Facilities & Equipment
Fire protection is provided from SMFPD’s fire station at 22375 El Camino Real, which was constructed
in 1964. SMFPD’s fire station has flooded several times, and they report that the station is insufficient
to support District operations and is in serious need of replacement. The District has purchased a
nearby vacant lot on El Camino Real to construct a new fire station and has earmarked $250,000 for
construction.
5 Map produced and provided by CAL FIRE/San Luis Obispo County Fire Department
Santa Margarita Fire Protection District 30
MSR & Sphere Study
Health and Safety Code 13906 states that the amount of indebtedness a fire protection district can take
on cannot exceed an amount equal to three times the actual income from property taxes received for
the fiscal year preceding the year in which the indebtedness is incurred. Given the District’s total actual
property tax in FY 2023-2024 was $148,084, a maximum debt of $444,252 would be allowed by state
law. When added to the reserved amount, the figure is $694,252. While the District is making efforts
toward reserving funds for a new facility, the gap between the available funding and the cost of
constructing an essential service building is substantial.
The District has been successful in obtaining grants for new equipment and donations of used fire
apparatus. SMFPD has two fire engines and a patrol vehicle. Table 7 below further details the District’s
apparatus and equipment. Engine 7891 and Patrol 78 are fully paid off, and the District still owes
approximately $60,000 on the loan for Engine 7863.
Table 7: SMFPD Apparatus Inventory
Type Make Seats
Number
Engine 7891 Type 1 Engine Seagrave 6
Engine 7863 Type 3 Engine HME 5
Patrol 78 Type 6 Patrol Ford F-450 5
Shared Facilities & Other Matters Related to Efficient Service Delivery
As discussed in previous sections, growth induced by the SMR Subdivision, approved by the County in
2008 but not yet constructed, may directly affect SMFPD’s service capability and capacity. According
to the conditions of approval associated with the Conditional Use Permit for the SMR Subdivision, prior
to any development on the site, the applicant shall provide for a new County Fire/Cal Fire Station to be
located near the project site either through the construction of the station or through the payment of
in-lieu fees, as determined in consultation with the County Public Works Department and County
Fire/Cal Fire. The County has also identified construction of a new County Fire/Cal Fire station in the
Garden Farms/Santa Margarita area as a high-priority project as County Fire Engine 40 located on
Parkhill Road (See Figure 10 above) is currently stationed well outside its primary incident response
area and is unable to provide the necessary suburban service level to Garden Farms/Santa Margarita
Santa Margarita Fire Protection District 31
MSR & Sphere Study
from its existing location. On February 25, 2025, the County Board of Supervisors provided direction to
County staff to complete a feasibility study and conceptual plan for the relocation of County Fire Engine
40 on Parkhill Road to the community of Santa Margarita, in close proximity to the current SMFPD Fire
Station, on El Camino Real. The approximate relocation site is depicted in the following map.
Figure 11: Proposed Relocation Site for County Fire Engine 40
Upon completion of the feasibility study and conceptual plan, land for this project may be donated;
however, the timing of construction of the new fire station is unknown at this time. Therefore, the SMR
Subdivision may be constructed prior to the construction and operation of the station. LAFCO
acknowledges that the timing of construction of the new County Fire/Cal Fire Station in Santa Margarita
may result in several service and capacity impacts for SMFPD. The information below describes several
Santa Margarita Fire Protection District 32
MSR & Sphere Study
considerations that should be made amongst the affected agencies, dependent on the timing of the
relocation of County Fire Engine 40 to Santa Margarita.
• Coordinated Capital Planning - SMFPD has a critical need for a new fire station and has begun
preliminary steps to construct a new station near the existing SMFPD station; however, funding
for a fire station replacement is deficient. The District may choose to postpone construction of
a new fire station until the timing of construction of the new County Fire Station in Santa
Margarita is known in order to avoid the duplicative expense and effort of building two new fire
stations within close proximity to one another. When County Fire Engine 40 is relocated to
Santa Margarita, County Fire is expected to provide fire protection with a “Suburban Service
Level” or eight-minute response time within the CSA 23 / SMFPD service area boundary.
Construction of two new fire stations (County Fire Engine 40 & SMFPD) in close proximity to
one another may therefore be unnecessary and may result in an inefficient provision of service
and expenditure of tax dollars.
• Joint Fire Station - As part of the feasibility study and conceptual plan, the County may choose
to consider a joint fire station shared between County Fire and SMFPD, as best government
practices would suggest that a cooperative approach in a joint fire station is more efficient than
duplicating expensive construction projects. However, there are existing concerns that two
agencies sharing space in a single fire station may not be supported by the respective fire
agencies.
• Expansion of SMFPD Service Area Boundary - Should development of the SMR Subdivision
occur prior to construction of the new County Fire Station in Santa Margarita, the SMFPD would
likely be the first agency to respond to the SMR Subdivision via Automatic Aid Agreements due
to their nearby location and no other close fire agency neighbors. In this scenario, the SMFPD
could explore annexation of the SMR Subdivision area to receive additional property tax
funding. LAFCO does not recommend expansion of SMFPD’s SOI at this time; however, this
option should be considered further should the timing of relocation of County Fire Engine 40
be significantly protracted.
• Dissolution – Should the County move forward with construction of a new County Fire Station
upon completion of the feasibility study and conceptual plan, dissolution of the SMFPD may
Santa Margarita Fire Protection District 33
MSR & Sphere Study
also be a consideration. At this time, dissolution is not recommended as there is an existing
need for service within the District and the Community of Santa Margarita, with no nearby fire
agency neighbors. Should fire service be found to be duplicative in the future, and dissolution
of SMFPD be considered further, the District’s current property tax funding could be transferred
to the County through a property tax exchange. The revenue transferred from the District to
the County could be utilized toward partial payment for fire station construction and/or
equipment replacement.
The analysis above represents the complexities of the situation and how key decisions, and the timing
of those decisions will affect SMFPD’s service capabilities. At this time, it appears that limited
coordination between the County, County Fire, and SMFPD has occurred regarding fire station location
and provision of service within the Community of Santa Margarita. As the feasibility study and
conceptual plan progress and construction of a new fire station is further examined, increased
coordination and communication amongst affected agencies are encouraged to prevent a potentially
inefficient provision of fire service.
Santa Margarita Fire Protection District 34
MSR & Sphere Study
DETERMINATIONS
Municipal Service Review Determinations
As set forth in Government Code Section 56430(a), in order to prepare and to update the SOI in
accordance with Government Code Section 56425, the Commission shall conduct a service review of
the municipal services provided in the County or other appropriate area designated by the Commission.
The Commission shall include in the area designated for a service review the county, the region, the
sub-region, or any other geographic area as is appropriate for an analysis of the service or services to
be reviewed, and shall prepare a written statement of its determinations with respect to each of the
following:
1. Growth and population projections for the affected area
In 2020, the total estimated population within SMFPD was 1,291. At buildout, the population is
expected to be approximately 1,466, with an estimated buildout year of 2050. Although limited
population growth is expected within the current SMFPD boundary, growth induced by the
nearby Santa Magarita Ranch (SMR) Subdivision is expected to generate approximately 300
additional residents by 2032-2034. This represents an approximate 23.2% increase in the
existing population of the Santa Margarita community, potentially resulting in service and
capacity challenges for SMFPD.
The County plans to conduct a feasibility study and conceptual plan for the relocation of County
Fire Engine 40 to the community of Santa Margarita, which, once constructed, would service
the SMR Subdivision. Due to its isolated location with no close fire agency neighbors, should the
SMR Subdivision be developed prior to relocation of County Fire Engine 40, the SMFPD would
likely be the first agency to respond through Automatic Aid Agreements. As the feasibility study
and conceptual plan progresses and construction of a new County Fire Station in Santa
Margarita is further examined, increased coordination and communication amongst affected
agencies are encouraged to prevent a potentially inefficient provision of fire service.
Santa Margarita Fire Protection District 35
MSR & Sphere Study
2. The location and characteristics of any disadvantaged unincorporated communities within or
contiguous to the sphere of influence
SMFPD's SOI and service area boundary includes one area that meets the criteria for a DUC as
defined by Government Code Section 56033.5. Referred to as Santa Margarita DUC Area #1, the
DUC, which encompasses the entirety of the community of Santa Margarita and neighboring
rural areas, has an estimated median household income (MHI) of $50,625, which is less than 80
percent of the statewide MHI, and contains approximately 1,189 registered voters. It should
be noted that the SMFPD SOI and service area boundary is surrounded by a single property
owner (the Santa Margarita Ranch), and the identified DUC includes some agriculture-zoned
areas with no registered voters. Should the District seek to evaluate the surrounding area for
annexation in the future, disadvantaged communities should be considered further.
3. Present and planned capacity of public facilities and adequacy of public services, including
infrastructure needs or deficiencies
SMFPD is a single-purpose agency authorized to provide services under Health and Safety Code
Section 13800. SMFPD is dependent on Paid Called Firefighters (PCF) and has had success in the
recruitment and retention of volunteers to date. Given the total of 16 active volunteers, the
District should be able to achieve two to three volunteers per call. If PCF recruitment is
unsustainable in the future, and there is a need to provide full-time career staff, SMFPD will
need to seek additional revenue, most likely through a benefit assessment.
In 2024, the District responded to a total of 200 incidents. With prompt turnout from on-call
PCF firefighters, the SMFPD can cover 100% of the District in a seven-minute response time,
which meets the "Suburban Service Level" response standard set by the County. SMFPD has no
close fire agency neighbors, with Automatic Aid provided by County Fire Engine 40 on Parkhill
Road, the City of Atascadero, and the Atascadero State Hospital.
Fire protection is provided from SMFPD’s fire station at 22375 El Camino Real, which was
constructed in 1964. SMFPD’s fire station has flooded several times, and they report that the
station is insufficient to support District operations and is in serious need of replacement to
meet current standards. The District has purchased a vacant lot on El Camino Real to construct
a new fire station; however, funding for construction is insufficient. The District has been
Santa Margarita Fire Protection District 36
MSR & Sphere Study
successful in obtaining grants for new equipment and donations of used fire apparatus and
currently has three apparatus in its fleet.
The County plans to conduct a feasibility study and conceptual plan for the relocation of County
Fire Engine 40 to the community of Santa Margarita. Construction of two new fire stations
(County Fire Engine 40 & SMFPD) in close proximity to one another may be unnecessary and
may result in an inefficient provision of service and expenditure of tax dollars. As the feasibility
study and conceptual plan progress and construction of a new County Fire Station in Santa
Margarita is further examined, increased coordination and communication amongst affected
agencies are encouraged to prevent a potentially inefficient provision of fire service.
4. Financial ability of agencies to provide services
The District Board of Directors adopts an annual budget on a basis consistent with generally
accepted accounting principles. The District is primarily funded through property taxes;
however, with low comparative assessed value and a small number of parcels, there has been
a slow growth of revenue and limited opportunity for revenue generation through benefit
assessment. SMFPD's operating ratio, liquidity ratio, and net position were used to analyze the
District's financial health. SMFPD's operating ratio, which measures the ratio of annual
operating revenues to annual operating expenses, indicated a healthy financial position in four
of the last five years audited. The District's liquidity ratio, which measures current assets against
current obligations, indicated a healthy financial position across all five audited years. The
District's net position, which is the difference between the agency's assets and liabilities, has
increased 10.87% over the last five-year audited period, indicating a positive financial trend in
the District's financial health.
Overall, the financial indicators used do indicate financial health; however, SMFPD’s current
revenues and financial position are not sufficient to fund a staffed fire station, operational costs,
or to fund a fire station replacement. Although the District has been successful in acquiring
grant funding to date, with rising costs, needed capital projects, and a potentially unsustainable
staffing model, the District is in a vulnerable financial position. As the County’s feasibility study
and conceptual plan for relocation of County Engine 40 to Santa Margarita progresses,
Santa Margarita Fire Protection District 37
MSR & Sphere Study
increased coordination and communication amongst affected agencies are encouraged to
prevent a potentially inefficient and expensive provision of fire service.
5. Status of and opportunities for shared facilities
SMFPD works closely and cooperatively with neighboring fire agencies and maintains automatic
and mutual aid agreements to ensure adequate coverage and response times. In addition,
County Fire provides dispatch services to the District. The County plans to conduct a feasibility
study for the relocation of County Fire Engine 40 to the community of Santa Margarita. As the
feasibility study and conceptual plan progress and construction of a new County Fire Station in
Santa Margarita is further examined, increased coordination and communication, and
discussions regarding shared facilities amongst affected agencies are encouraged to prevent a
potentially inefficient provision of fire service.
6. Accountability for community service needs, including governmental structure and
operational efficiencies
SMFPD is governed by a three-member Board of Directors, who are appointed to four-year
terms. District elections have largely gone uncontested for the last several election cycles.
Regularly scheduled monthly Board meetings are held and are open to the public. The District’s
agendas, board packets, minutes, and financial reports are posted on the fire station window
and made publicly available upon request. To maintain compliance with Senate Bill 929, the
Brown Act, and increase transparency to the community, the District is encouraged to maintain
an up-to-date website and annually update an SB 272 Enterprise System Catalog.
7. Any other matter related to effective or efficient service delivery
According to the conditions of approval associated with the SMR Subdivision, the applicant shall
provide for a new County Fire Station located near the project site. The County Board of
Supervisors has provided direction to County staff to complete a feasibility study and
conceptual plan for the relocation of County Fire Engine 40 on Parkhill Road to the community
of Santa Margarita, in close proximity to the current SMFPD Fire Station, on El Camino Real,
however timing of construction is unknown at this time and the SMR Subdivision may be built
prior to construction of the new County Fire Station. Construction of the new County Fire
Santa Margarita Fire Protection District 38
MSR & Sphere Study
Station may result in significant service and capacity impacts for SMFPD. As the feasibility study
and conceptual plan progress and construction of a new County Fire Station in Santa Margarita
is further examined, increased coordination and communication amongst affected agencies are
encouraged to prevent a potentially inefficient provision of fire service.
Sphere of Influence Determinations
In order to carry out its purposes and responsibilities for planning and shaping the logical and orderly
development of local governmental agencies to advantageously provide for the present and future
needs of the county and its communities, the Commission shall develop and determine the Sphere of
Influence of each local agency, as defined by Government Code Section 56036, and enact policies
designed to promote the logical and orderly development of areas within the sphere. In determining
the Sphere of Influence of each local agency, the Commission shall consider and prepare a written
statement of its determinations with respect to the following:
1. Present and planned land uses in the area, including agricultural and open-space lands.
Land uses within the SMFPD’s coterminous SOI and service area boundaries are subject to the
Santa Margarita Community Plan. The community of Santa Margarita is close to being built out
in its residential areas. Although it has enough land designated for a 100 percent increase in
commercial development, commercial development is expected to be slow. The primary land
use designations within the District are Residential Suburban and Residential Single Family. The
District does not contain any land within the Agriculture or Open Space land use categories;
however, outside the District boundary, the nearby SMR Subdivision, which consists of 111
residential lots, is within the Agriculture land use category.
The County plans to conduct a feasibility study and conceptual plan for the relocation of County
Fire Engine 40 to the community of Santa Margarita, which may result in service and capacity
impacts for SMFPD. No modifica�ons to SMFPD’s SOI are recommended at this �me, however
upon comple�on of the County’s feasibility study and conceptual plan for the reloca�on of
County Fire Engine 40 to Santa Margarita, LAFCO shall conduct another MSR and SOI study for
the District, and the SOI and service area boundaries should be reconsidered at that �me.
Santa Margarita Fire Protection District 39
MSR & Sphere Study
2. Present and probable need for public facilities and services in the area.
There is a present and probable need for fire protection services in the area as the Community
of Santa Margarita is in an isolated location with no close County Fire station or other nearby
fire agency neighbors. Automatic aid is provided by County Fire Station 40 on Parkhill Road, 5
miles east on Highway 58. The next closest mutual aid fire stations are the City of Atascadero
and Atascadero State Hospital, which are both 7 miles north. The closest ambulance responds
from Atascadero, approximately 14 minutes away.
The County plans to conduct a feasibility study and conceptual plan for the relocation of County
Fire Engine 40 to the community of Santa Margarita, which may result in service and capacity
impacts for SMFPD. No modifica�ons to SMFPD’s SOI are recommended at this �me, however
upon comple�on of the County’s feasibility study and conceptual plan for the reloca�on of
County Fire Engine 40 to Santa Margarita, LAFCO shall conduct another MSR and SOI study for
the District, and the SOI and service area boundaries should be reconsidered at that �me.
3. Present capacity of public facilities and adequacy of public services that the agency provides
or is authorized to provide.
SMFPD is a single-purpose agency authorized to provide services under Health and Safety Code
Section 13800. SMFPD is dependent on Paid Called Firefighters (PCF) and has had success in the
recruitment and retention of volunteers to date. Given the total of 16 active volunteers, the
District should be able to achieve two to three volunteers per call. If PCF recruitment is
unsustainable in the future, and there is a need to provide full-time career staff, SMFPD will
need to seek additional revenue, most likely through a benefit assessment.
In 2024, the District responded to a total of 200 incidents. With prompt turnout from on-call
PCF firefighters, the SMFPD can cover 100% of the District in a seven-minute response time,
which meets the "Suburban Service Level" response set by the County. SMFPD has no close fire
agency neighbors, with Automatic Aid provided by County Fire Engine 40, the City of
Atascadero, and the Atascadero State Hospital.
Fire protection is provided from SMFPD’s fire station at 22375 El Camino Real, which was
constructed in 1964. SMFPD’s fire station has flooded several times, and they report that the
station is inadequate to support District operations and is in serious need of replacement. The
Santa Margarita Fire Protection District 40
MSR & Sphere Study
District has purchased a vacant lot on El Camino Real to construct a new fire station; however,
funding for construction is insufficient. The District has been successful in obtaining grants for
new equipment and donations of used fire apparatus and currently has three apparatus in its
fleet.
The County plans to conduct a feasibility study and conceptual plan for the relocation of County
Fire Engine 40 to the community of Santa Margarita, which may result in service and capacity
impacts for SMFPD. No modifications to SMFPD’s SOI are recommended at this time, however
upon completion of the County’s feasibility study and conceptual plan for the relocation of
County Fire Engine 40 to Santa Margarita, LAFCO shall conduct another MSR and SOI study for
the District, and the SOI and service area boundaries should be reconsidered at that time.
4. Existence of any social or economic communities of interest in the area if the commission
determines that they are relevant to the agency.
There are no social or economic communities of interest within the District service area
boundary.
5. For an update of the sphere of influence of a city or special district that provides public
facilities or services related to sewers, municipal and industrial water, or structural fire
protection, the present and probable need for those public facilities and services of any
disadvantaged unincorporated communities within the existing sphere.
SMFPD's coterminous SOI and service area boundary includes one area that meets the criteria
for a DUC as defined by Government Code Section 56033.5. Referred to as Santa Margarita DUC
Area #1, the DUC, which encompasses the entirety of the community of Santa Margarita and
neighboring rural areas, has an estimated median household income (MHI) of $50,625, which
is less than 80 percent of the statewide MHI, and contains approximately 1,189 registered
voters. It should be noted that the SMFPD SOI and service area boundary is surrounded by a
single property owner (the Santa Margarita Ranch), and the identified DUC includes some
agriculture-zoned areas with no registered voters. No modifications to SMFPD’s SOI are
recommended at this time, however upon completion of the County’s feasibility study and
conceptual plan for the relocation of County Fire Engine 40 to Santa Margarita, LAFCO shall
Santa Margarita Fire Protection District 41
MSR & Sphere Study
conduct another MSR and SOI study for the District, and the SOI and service area boundaries
should be reconsidered at that time.