2005 California Government Code Sections 25210.90 Article 9. Automatic Exclusion From County Service Areas

25210.90.  Whenever any territory in a county service area is
included within a city by reason of incorporation, annexation or
otherwise that territory shall be automatically excluded from the
county service area upon the effective date of its inclusion in the
city, whether or not such inclusion within a city occurs before or
after the completion of the formation of the county service area,
subject only to compliance with the requirements of Chapter 8, Part
1, Division 2, Title 5 of the Government Code.
   Upon the exclusion of such territory all unencumbered funds
standing to the credit of the area upon the date of the exclusion
shall be divided between the city and the county service area in
proportion to the assessed value of the real property of the
territory excluded and the portion remaining.  For the purpose of
this section the unencumbered funds are the sum of money, uncollected
taxes, including taxes levied and collected for the area on property
withdrawn after the date of withdrawal, and other uncollected
accounts belonging to or due such area, in excess of an amount
sufficient to pay all claims and accounts against the area.
   In the event the service area has indebtedness evidenced by bonds
and the indebtedness is outstanding and owing on the date of the
withdrawal the property within any territory withdrawing from the
service area shall nevertheless be liable for assessment and payment
of the tax for its pro rata share thereof.
   In the event the county for the benefit of the service areas has
incurred indebtedness or other contractual obligation extending
beyond the current fiscal year, as evidenced by a written instrument
and such indebtedness or contractual obligation is for the rental,
lease, purchase or other use of land, structures or other
improvements, the property within any territory withdrawing from the
service area shall nevertheless be liable for assessment and payment
of a tax for its pro rata share of such indebtedness or contractual
obligation.