HomeMy WebLinkAbout0012_1_Staff Report PH LMD LMD NO1REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Grant Yates, City Manager
Prepared By: Jason Simpson, Assistant City Manager
Date: July 26, 2016
Subject:Public Hearing on the Citywide Landscaping and Street Lighting
District and the Landscaping &Street Lighting Maintenance District No. 1 for Fiscal
Year 2016-17
Recommendation
1. Open the public hearing and take testimony related to the Citywide Landscaping &
Street Lighting District ("Citywide LLMD")and Landscaping &Street Lighting
Maintenance District No.1 ("LLMD No.1")annual assessments.
2. Close the public hearing
3. Adopt RESOLUTION NO. 2016-___ A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF LAKE ELSINORE, CALIFORNIA, CONFIRMING A DIAGRAM AND
ASSESSMENT AND PROVIDING FOR ANNUAL ASSESSMENT LEVY AFTER
FORMATION OF A DISTRICT FOR FISCAL YEAR 2016-17 FOR THE CITYWIDE
LLMD
4. Adopt RESOLUTION NO. 2016-___ A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF LAKE ELSINORE, CALIFORNIA, CONFIRMING A DIAGRAM
AND ASSESSMENT AND PROVIDING FOR ANNUAL ASSESSMENT LEVY AFTER
FORMATION OF A DISTRICT FOR FISCAL YEAR 2016-17 FOR THE LLMD NO. 1
Background
The City Council established a Citywide LLMD in 1988 for the purpose of operating and
maintaining enhanced public street lighting,right of way landscaping,public street trees and
parks throughout the City.The Citywide LLMD was established under the California
Landscaping and Lighting Act of 1972.Several improvement areas were established within the
Citywide LLMD based upon the level and type of improvements maintained. These
improvements then provided a basis for creating several benefit zones throughout the
Citywide LLMD to ensure parcels were assessed based upon special benefit to them.
Resolutions for Public Hearing for Citywide and LLMD No. 1
July 26, 2016
Page 3
The Citywide LLMD only includes those facilities found to be exempt by Proposition 218, a
Constitutional Amendment passed by the voters in November, 1996. Park facilities are not
exempt per the Constitutional Amendment. Therefore,since November, 1996, park
maintenance was removed from the Citywide LLMD and has been provided through the
General Fund.
The Landscaping and Lighting Act of 1972 requires that an annual review and updated
Engineer's Report be prepared to set assessment rates each Fiscal Year. In addition, any
new assessment districts or any annexation of additional property into existing assessment
districts also requires an Engineer's Report to be generated. The Fiscal Year 2016-17
assessments in the Citywide LLMD and the LLMD No. 1 Final Engineer's Report will be
assessed on the Fiscal Year 2016-17 tax roll and are calculated by considering all anticipated
expenditures for maintenance, utilities and administration. Any excess dollars from previous
Fiscal Years are carried over to current reports and the assessment amounts are adjusted
accordingly.
The assessment rates may or may not change from Fiscal Year to Fiscal Year, dependent upon
maintenance to be performed, but cannot exceed the maximum amount set when the districts
were originally formed, plus an annual cost of living adjustment (theCitywide LLMD has no cost
of living adjustment). The amounts being assessed for the Fiscal Year 2016-17 tax year are
either at, or below the maximum assessment authorization. As a part of the process, the
Landscaping and Lighting Act of 1972 requires that an Engineer's Report must be filed and a
PublicHearing be held.
On June 14, 2016 the City Council adopted the appropriate resolutions to commence the
proceedings for the annual levy of assessments for Fiscal Year (FY) 2016-17 for the Citywide
LLMD and the LLMD No. 1. The Public Hearing was set for July 26, 2016.
Discussion
Attached hereto are two Resolutions confirming the diagram and assessment and providing
for an annual assessment levy for both districts for Fiscal Year 2016-17. Details of the
assessmentsare provided in the FY 2016-17 Final Engineer's Report for each district.
Fiscal Impact
It is anticipated the Citywide LLMD will generate approximately $1,408,608 from the
assessments to cover the anticipated landscaping and street lighting maintenance activities
associated with public improvements benefiting properties within the district. Estimated cost
for this maintenance is approximately $1,904,550.Accordingly,the General Fund must
cover the estimated gap of $495,902. The assessment rates for parcels have no inflation
factor included; therefore, the rates have not increased over Fiscal Year 2015-16.
It is anticipated LLMD No. 1 will generate approximately $363,200 from the assessments to
cover the anticipated landscaping and street lighting maintenance activities associated with
public improvements benefiting properties within the district. There is approximately $357,600
in expenditures, and therefore LLMD No. 1 is generally self-supporting with one exception. Zone
4 of LLMD No. 1 requires a general fund contribution of $12,227.00 to cover the general
benefit portion of the park maintenance costs, as required by Article XIII D of the State
Constitution (Proposition 218). The assessment rates for LLMD No. 1 include an inflationary
increase of 2%.
Resolutions for Public Hearing for Citywide and LLMD No. 1
July 26, 2016
Page 3
Exhibits
A- Resolution 2016- _____
B- Resolution 2016-______
C- Final Engineer's Report for Citywide LLMD
D- Final Engineer's Report for LLMD No. 1E- Map