Arden Arcade's cityhood effort has been re-energized by state legislation extending a financial boost to new cities.

Gov. Arnold Schwarzenegger signed the bill into law last week, and it could translate into millions of dollars for a new city of Arden Arcade – should supporters get enough residents in 2010 to vote to form a city.

But the legislative action came too late to revive a moribund Rio Linda-Elverta cityhood effort. Organizers pulled the plug on their incorporation drive 13 days ago.

Senate Bill 301, by Sen. Gloria Romero, D-Los Angeles, removes a July 2009 deadline for newly formed cities to be eligible for startup funds.

Romero said her focus was on East Los Angeles when she drafted the bill, but she quickly learned there were more communities that could benefit from it.

"The local issue was really a statewide concern," Romero said. "If we ever want to see another city incorporate in California, we needed to address this issue."

Joel Archer, chairman of the Arden Arcade incorporation effort, said it gives new life to the cityhood drive. "It means full-speed ahead," he said.

Arden Arcade has a strong economic base, anchored by Fulton Avenue's auto row.

It remains to be seen, however, whether organizers can raise enough money to pay for various feasibility studies and muster enough neighborhood support to pull away from Sacramento County services.

Arden Arcade's incorporation backers had hoped to place cityhood on the Nov. 4 ballot – but failed to meet key deadlines.

Those plans had to be reworked in March following late payments, a tight timetable and delays with the consultant studying the viability of cityhood.

June 2010 is the group's new target for a cityhood vote.

Without the Romero bill, moving the vote from 2008 to 2010 would have potentially cost the new city millions of dollars.

With the law in place, an incorporated Arden Arcade would receive annual payments starting around $6 million its first year and declining over the next 10 years.

Archer said the money would help ensure the city would be in the black, even as the city and county of Sacramento grapple with multimillion-dollar budget deficits.

In recent months, the Arden Arcade cityhood movement has been relatively quiet.

"I have heard nothing about incorporation for the longest time," said Melinda Eppler, executive director of the Fulton Avenue Improvement Association.

Archer, however, claims his group is intact and well on its way to raising the $120,000 left to be paid for the required financial and environmental studies.

Meanwhile, backers of cityhood for Rio Linda-Elverta said the times aren't right for pushing for cityhood.

"We voted to dissolve our incorporation committee," said Gerald Trautman, the group's chairman. "We have abandoned the incorporation effort."

The Rio Linda-Elverta effort had been on life support since 2006 when a consultant concluded the new city would need to include a 1,430-acre swath of county land eyed for annexation by the city of Sacramento.

Trautman said the poor economy made the task of raising the hundreds of thousands of dollars needed to study and then campaign for incorporation virtually impossible.

"All the reasons for incorporation are still valid," he said. "We didn't see any clear way of raising that kind of money in the foreseeable future."

Trautman said cityhood supporters have $8,000 remaining. According to the group's bylaws, the unspent funds will be distributed to Rio Linda and Elverta charities.

Call The Bee's Ed Fletcher, (916) 321-1269.