TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
title
Landscape and Streetlight Maintenance District Assessment for Fiscal Year 2024-2025.
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RECOMMENDATION
recommendation
1) Conduct the Public Hearing; 2) adopt Resolution No. 2024-035; and 3) direct the City Clerk to file a certified copy of the diagram and assessments with the County Auditor/Controller Recorder.
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FISCAL IMPACT
By approving Resolution No. 2024-035, the City will receive an estimated $18,540.21 in additional revenue to offset ongoing expenditures.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Positive City Image
• Superior Customer Service
• Responsible Long-Range Planning
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Revenue: 36172601, 36172602, 36172603, 36172604, 36172606, 36172607 |
Expenditure: 3607260, 36172601, 36172602, 36172603, 36172604, 36172606, 36172607 |
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BACKGROUND
Over the years, pursuant to the Landscaping and Lighting Act of 1972 of the California Streets and Highways Code, the City formed six Landscape and Streetlight Maintenance Assessment Districts. This procedure authorized the City to recover costs that are incurred in providing landscaping and street lighting maintenance services through a special benefit assessment district procedure.
At the July 2, 2024, City Council meeting, three (3) resolutions were adopted that approved the Engineer’s Report; declared the City’s intention to order improvements; and scheduled a Public Hearing for July 16, 2024.
In past years, the City Council has approved a subsidy to the districts for landscape and lighting maintenance costs. As the costs associated with insurance, maintenance, water, and electricity increase, the subsidy has also increased. Staff has reviewed the Fiscal Year 2022-23, 2023-24, and the new Fiscal Year 2024-25 information for expense, revenue, and subsidies from the Engineer’s Reports provided by Webb Associates. The information is provided as follows:
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FY22-23 |
FY23-24 |
FY24-25 |
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Total Maintenance Cost |
$1,131,634.28 |
$1,195,873.80 |
$1,288,329.96 |
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Total Revenues Collected |
$654,474.26 |
$673,432.71 |
$691,972.92 |
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City's Subsidy *(1) |
$477,160.02 |
$522,441.10 |
$596,357.03 |
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Required City 50% Contribution (General Benefit/Perimeter Areas) |
$451,863.32 |
$507,189.88 |
$516,274.29 |
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Total City Cost |
$929,023.34 |
$1,029,630.98 |
$1,112,631.32 |
Note*(1) The City subsidy contribution funds streetlight, tree, and landscape maintenance, water and electricity costs within the Maintenance Districts.
A Proposition 218 mail ballot election, with majority support, would be required for any rate increase to the property owners in the districts above their current maximum assessment. Certain zones in Exhibit 1 had a 5% or less increase to their assessment for Fiscal Year 2024-25 since they were not at their maximum assessment. This increase does not trigger a proposition election and will adjust each year until it reaches the maximum rate.
During Fiscal Year 2024-25, staff will continue to monitor expenditures and revenues by Districts and Zones to better track the subsidy.
ISSUES/ANALYSIS
Exhibit 1 enumerates the actual Fiscal Year 2023-24 assessments for the 75-1, 75-2, 76-1, 76-2 and 83-2 assessment districts and staff’s recommended assessments for Fiscal Year 2024-25, holding the per-zone assessments not to exceed their Fiscal Year 2023-24 amounts (except in those areas that the rate was below the maximum assessment).
Exhibit 2 enumerates the actual Fiscal Year 2023-24 assessments for the 2002-1 assessment district and staff’s recommended assessments for Fiscal Year 2024-25 which includes a 2.88% CPI rate increase (calculated by identifying the percentage difference between the January 2023 and January 2024 CPI Monthly Index).
The total maintenance cost for Fiscal Year 2023-24 is estimated to be $92,456.16 more than the previous fiscal year. However, the total revenue collected for Fiscal Year 2023-24 is estimated to be $18,540.21 more than the previous fiscal year. This is due to a rate increase for some districts that are not at their maximum assessment rate and District 2002-1 which has an escalator receiving a CPI increase. As a result, the City’s subsidy also increases to offset the total maintenance costs and the total revenues collected.
It should be noted that the City contributes 50% of the perimeter cost for the common landscape and lighting areas. This cost is the City’s responsibility regardless of the revenue received.
A Public Hearing is required in order to levy the annual assessments. Pursuant to Section 22629 of the California Streets and Highways Code, all interested persons shall be afforded the opportunity to hear and be heard, and upon the conclusion of the Public Hearing, Council may order changes in any of the matters provided in the report.
Attachments: Resolution 2024-035
Exhibit 1 - Proposed Rates for LSMD's 75-1, 75-2, 76-1, 76-2, 83-2
Exhibit 2 - Proposed Rates for LSMD 2002-1
FY 24-25 Engineer’s Report for LSMD’s 75-1, 75-2, 76-1, 76-2, 83-2
FY 24-25 Engineer’s Report for LSMD 2002-1
FY 24-25 CPI
Chino LSMD 83-2 Map FY24-25
Chino LSMD 2002-1 Map FY24-25