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Staff Report
City Council
Item No. 6.D
Meeting Date: May 10, 2023
From: Kevin Biersack, Financial Services Director
Title: Annual Renewal of the Lighting and Landscaping District Budget for Fiscal Year 2023/2024
City Council
RECOMMENDATION:
To adopt three Resolutions to renew the annual assessments with Street Lighting and Landscape Maintenance District No. 1 (Zones 1 through 54, non-sequential) BACKGROUND:
In August 2001, City Council adopted Res. 2001-57 approving the formation of an assessment district created under the Street Landscaping and Lighting Maintenance District Act of 1972. The original district was initiated with six proposed benefit zones, but after the required Proposition 218 ballot process, only four Benefit Zones were approved.
Since the initial formation, annexations of additional zones have been approved by City Council and passed by property owners through the Proposition 218 ballot process, making a total of sixteen (16) current zones (Zones 1 thru 54, non- sequential).
The 1972 Act provides that assessments may be levied annually. Proposition 218 laws provide assessment increase limitations. Assessments for labor, material and utility increases cannot exceed an amount greater than the Consumer Price Index (CPI) for the previous year. Re-balloting is required if increases exceed the CPI limitations or if the scope of work accomplished by the LLD Zone were to change. Under the preliminary Engineer’s Report, there are no LLD Zone levy increases exceeding the CPI limitation nor are there any scope changes as currently proposed.
DISCUSSION:
As stated in the Recommendation above, the prescribed process includes the City Council adopting resolutions. To meet the time requirements to levy the parcels for the FY 2023-2024 tax year, the Resolutions need to be approved by May 10, 2023. A Public Hearing will be scheduled on June 14, 2023, duly published and made available at least 10 days prior to the Public Hearing. The Final Engineer’s Report and Levy for LLD Zones 1 through 54 (non-sequential) will be presented at the June 14th meeting. At that time, the Council shall be passing a Resolution approving the Engineer’s Report and a Resolution
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regarding the Establishment of the Maximum Assessment and Ordering the Levy and Collection of the Assessment.
FISCAL IMPACT:
Final acceptance of the Engineer’s Report and the Resolution Ordering the Levy and Collection of Assessment will allow the City to collect the appropriate levies from the parcel owners for these 16 LLD zones. Two of these LLD zones provide for a 100% contribution from the City’s General Fund for the maintenance of public parks (Century Park and Panorama Park). In addition, the arterial streetlights in these zones are funded with a 50% contribution from the City's General Fund.
ATTACHMENTS:
FY2324-LLD Initiating Resolution
FY2324-LLD Intention Resolution
FY2324-LLD Preliminary Approval Resolution
FY 2324 Cathedral City-Engineers Report to City_Preliminary