DATE:
| 6/25/2019 | TO:
| HONORABLE MAYOR AND CITY COUNCIL | FROM:
| MARILOU AYUPAN, INTERIM PUBLIC WORKS DIRECTOR | SUBJECT:
| PUBLIC HEARING FOR RENEWAL OF LANDSCAPE & LIGHTING DISTRICT NO. 3 (LLAD No. 3)
|
In accordance with the Landscape and Lighting Act of 1972 and the California Government Code, the City Council is required to conduct a public hearing every year regarding the renewal of assessments for the upcoming fiscal year. The assessment rates have not changed in the last 22 years and are not being proposed to go up now.
BACKGROUND
Pursuant to state law, the City has published a notice on June 11, 2019 for a public hearing to be held on Tuesday, June 25, 2019.
Lighting & Landscape Assessment District rates have not increased since the 1996-97 fiscal year. During this same 22-year period, there have been increases in population, new housing, streets, parks, street lights, landscapes, signalized intersections, and cost of landscaping and irrigation system related materials. This growth of the infrastructure combined with "flat" funding has resulted in a reduction of maintenance standards and higher costs being applied to the General fund.
The services funded by this assessment district include work by outside contractors such as for maintenance of street lights, traffic signals, tree pruning and parks and trails maintenance, the costs for delivering such services are all higher than what they were two decades ago.
DISCUSSION
By the attached resolution and pursuant to state law, on June 25, 2019 the City Council is to hold a public hearing regarding the landscape and lighting district No. 3 assessments. Following the public hearing, the City Council may take action to accept or amend the Engineer’s Report, overrule minority protests, and order the renewal of assessments. The Engineer’s Report was previously submitted to the City Council on May 14, 2019 as part of the Intent to Renew the LLAD No. 3 which also set the June 25, 2019 public hearing date.
FISCAL IMPACT
The base assessment levy is proposed to remain at the base rate of $90.19 per parcel for single family residential, $.0751 per square foot for commercial parcels, and $.0563 per square foot for industrial parcels. (No change from previous 22 years of assessments). The assessment is expected to generate $2,673,105 of revenue to be applied against $4,111,923 of eligible costs. This will leave a maintenance funding shortfall of $1,438,818 which will be paid for out of the general fund and other special funds. This shortfall or deficit is expected to continue to go up due to inflation. The assessment amount can only be increased if approved by the voters.
Upon renewal of the LLAD No. 3 a single-family home will continue to be assigned One (1) Benefit Unit. It will have the same assessment rate of $90.19 per Benefit Unit as in the previous twenty-two (22) years. The assessments for other land uses and special zones of benefit are based upon the benefit those land uses receive in proportion to the single-family residence rate. 2019-20 Assessment Roll has previously been transmitted to the City Council.
RECOMMENDATION
It is recommended that the City Council conduct a public hearing pursuant to the Landscape & Lighting Act of 1972. Following the public hearing, adopt the attached resolution to:
1. Accept (or direct the amendment of) the Engineer's Report
2. Overrule minority protests
3. Set the annual assessment levy for fiscal year 2019-2020
4. Appropriate 511 Zone and Brookstone annual assessments into Public Works Grounds Maintenance Programs
Prepared by:
Farooq Azim, Acting City Engineer
Submitted by:
Marilou Ayupan, Public Works Director |