TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
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Landscape and Streetlight Maintenance District Assessment for Fiscal Year 2024-25.
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RECOMMENDATION
1) Adopt Resolution No. 2024-031 directing the filing of an annual report; 2) adopt Resolution No. 2024-032 approving the Engineer's Report; 3) adopt Resolution No. 2024-033 declaring its intention to order improvements for Assessment District Nos. 75-1, 75-2, 76-1, 76-2, 83-2, and 2002-1; and 4) schedule a Public Hearing for Tuesday, July 16, 2024.
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FISCAL IMPACT
There are sufficient funds in the Fiscal Year 2024-25 Public Works Department budget within the various Maintenance District Programs.
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 to provide landscaping and street lighting maintenance services through a special benefit assessment district procedure.
Proposition 218 changed the procedural requirements for imposing, extending, or increasing landscape and lighting assessments. Due to these changes, the City Council, in 2002, adopted a policy to annex future developments into Landscape and Streetlight Maintenance District 2002-1, which has a consumer price index (CPI) escalator that allows the City to increase rates.
The CPI adjustment is determined by the United States Department of Labor, Bureau of Labor Statistics for all urban consumers in the Riverside - San Bernardino - Ontario area index from January 2023 - January 2024. This year, there is a 2.88% CPI increase for landscape and streetlight maintenance in District 2002-1.
In past years, 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 change, the subsidy has also changed. 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 |
*The City Subsidy Contribution funds streetlight, tree, and landscape maintenance, and water and electricity costs within the Maintenance Districts. It should be noted that the costs are off by one cent due to rounding issues.
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 2023-24 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.
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.
The administrative charges (salaries, advertising, consultant services, and other miscellaneous office charges) for all six districts, 75-1, 75-2, 76-1, 76-2, 83-2 and 2002-1 were spread proportionately among the individual assessment areas.
ISSUES/ANALYSIS
For the City to continue assessing fees to maintain its landscape and lighting districts under the Landscape and Lighting Act of 1972, the City Council is required to approve or approve as modified, the attached resolutions in sequence. This process documents the City’s intention to levy and collect assessments.
A public hearing is required even though the rates are not recommended for increases over the allowable costs under Proposition 218, and the hearing has been scheduled for Tuesday, July 16, 2024. Mailed notices are not required, only legal advertising and posting are mandated for this year. The Engineer’s Report provides detailed information on all costs used in determining the proposed assessments and is on file for review in the Public Works Department.
Attachments:
Resolution Filing 2024-031
Resolution Approving 2024-032
Resolution Intention 2024-033
FY24-25 CPI
FY24-25 LMD 2002-1 ER
FY24-25 LMDs 75, 76, 83-2 ER
FY24-25 LMDs 75, 76, 83-2 Assessment Diagram
FY24-25 LMD 2002-1 Assessment Diagram
Exhibit 1
Exhibit 2