Fiscal Impact
During Fiscal Year 23/24, CHLD (Fund 289) had a shortfall of $129,496.28, which was covered using Measure A Maintenance funds (Fund 210).
For Fiscal Year 24/25, the annual special assessment revenue and reimbursement from Caltrans for several shared facilities are projected to cover a portion of the CHLD’s anticipated expenditures. However, as a result of the continuing increases to electrical power costs and the ongoing repairs related to aging equipment, the proposed Fiscal Year 24/25 budget reflects an anticipated shortfall of approximately $145,405.72.
In FY 21/22, the City implemented an energy efficiency project, funded by a low interest (1%) loan granted by the California Energy Commission, to upgrade 593 street light fixtures to lowenergy LED models. While this effort resulted in annual electricity cost savings, in FY 22/23 the City began repayment of the loan utilizing associated energy cost savings.
A summary of the CHLD budget is as follows:
Description
FY 23/24
Actual
FY 24/25
Anticipated
REVENUE:
Special Assessments $332,883.89 $333,000.00
Shared Maintenance Cost Reimbursement from
Caltrans $125.28 $130.00
Total District Funding $333,009.17 $333,130.00
EXPENDITURES:
SMUD Electric Costs(1) $245,551.96 $245,000.00
Scheduled Maintenance Costs $90,517.44 $91,000.00
Unscheduled Maintenance Costs and Knockdowns(1) $83,581.03 $95,000.00 CEC Loan Repayment(2) $23,155.72 $23,155.72
Other Costs $19,699.30 $24,380.00
Total District Expenditures $462,505.45 $478,535.72
DISTRICT SHORTFALL -$129,496.28 -$145,405.72
(1) At the time this staff report was written the June 2024 utility and unscheduled maintenance costs had yet to be finalized, costs are estimated.
(2) FY 24/25 represents the third year for repayment of a low interest (1%) Energy Efficiency Loan from the California Energy Commission (CEC) for conversion of approximately 593 street lights to energy efficient models. Actual energy cost savings will be used to repay the loan.
ITEM 14 Agenda Packet Page 194
Subject: Citrus Heights Lighting District – Levy Assessments for Fiscal Year 24/25 Date: July 10, 2024
Although there is no impact to the General Fund, Measure A Maintenance funds (Fund 210) are proposed to supplement the special assessments to cover the anticipated FY 24/25 CHLD budget shortfall.
With the passage of Proposition 218 in 1996, lighting assessment rates are essentially frozen and can only be changed by a two-thirds vote of the people since this is considered a special tax.
Therefore, the assessment rates were unchanged for Fiscal Year 22/23 and, as summarized in the table below, no changes are recommended for Fiscal Year 23/24.
Assessment Rate
FY 24/25 Rates
(Unchanged from FY 23/24 Rates)
Safety Light Only $2.56/parcel
Safety and Street Light (single family residential) $17.88/parcel Safety and Street Light (non-single family
residential)
$2.56/parcel + $0.2519 per linear foot of
frontage
Background and Analysis
Sacramento County created County Service Area No. 1 (CSA-1) to provide revenue to operate and maintain street and safety lights throughout the County. In June 2005, the City Council voted to begin the process of detaching from CSA-1 in an effort to improve levels of service on safety and street lighting within the City. In June 2006, the City completed the process by forming the CHLD and became fully responsible for operation and maintenance of all street and safety lights within the City.
Specific maintenance responsibilities for the District are discussed in the Engineer’s Report, enclosed as Attachment 2.
The annual update and the levy of assessments for Fiscal Year 24/25 for the CHLD, proposed by the resolution, will fund operation and maintenance of street lights and safety lights, including the cost of electricity, replacement of bulbs and repair and replacement of damaged light poles, luminaires, and other related equipment.
Through ongoing analysis of the District, the City has substantially improved the level of service related to street light maintenance and operations, and fine-tuned the scope of the annual maintenance contract. In the past several years, continued efforts by staff have resulted in reductions to the annual expenses. Currently, a total of approximately 2,577 energy efficient LED lights (approximately 53.5% of the District’s total inventory) have been installed and/or converted from existing street lights. Efforts to install more efficient LED lighting and lower annual maintenance rates reduced the District’s total expenditures. However, repeated increases in electric utility rates, more frequent repair of aging street lighting equipment, and damages due to auto vehicular crashes have offset these cost savings resulting in a projected shortfall of approximately $145,405.72 for Fiscal Year 24/25. The increase of the number of safety lights included in the City’s Capital Improvement Projects (CIPs) and development projects have also added additional electricity and maintenance costs.
ITEM 14 Agenda Packet Page 195
Subject: Citrus Heights Lighting District – Levy Assessments for Fiscal Year 24/25 Date: July 10, 2024
Staff continues to identify and evaluate additional measures to reduce District expenditures and offset rising electricity costs. In 2019, the City conducted a feasibility study evaluating the possibility to update various City-owned equipment and facilities with the goal of reducing energy costs. On April 8, 2020, the California Energy Commission (CEC) approved a low interest (1%) Energy Efficiency Loan for the implementation of an energy efficiency upgrade project consisting of a significant number of street light retrofits. In June 2021, a City-retained contractor began replacing existing street lights with LED fixtures, which was completed in October 2021. As a result of the LED upgrades, the City’s electrical bills from the Sacramento Municipal Utility District (SMUD) decreased on average by 9.6% for the six-month period of December 2021 to May 2022 compared to the same timeframe the prior year.
In addition, LED conversions have become part of the regular maintenance program and staff continue to work with the SMUD to ensure accurate billings, including quantities, type, and wattages for the entire CHLD inventory. Monthly updates, LED conversions and changes are communicated to SMUD which are subsequently reflected in the monthly utility billings.
No major expansion of the existing system, except when included in major transportation projects funded by grants or new development projects, will be considered until additional revenues can be identified to cover the initial and ongoing costs associated with an expansion.
The CHLD has been underfunded since the City first took it over from Sacramento County in 2006. Many efforts have been made to reduce costs (i.e. installing LED lights and negotiating lower maintenance rates); however, continually increasing utility rates and monthly maintenance costs as well as updated methods for allocation of the City’s overhead costs have all contributed to the increasing shortfall. The underlying problem is that the assessment rates (outlined in Fiscal Impact, above) have remained unchanged since 1996 when Proposition 218, which requires a vote of those assessed to approve an increase, was passed by the California voters.
On June 27, 2024, the City Council adopted a Resolution of Intention for the CHLD approving the Engineer’s Report, declaring its intention to order the annual update for Fiscal Year 24/25, to levy and collect assessments for the CHLD, and setting the time and date for the public hearing.
Pursuant to the Landscaping and Lighting Act of 1972, the City must hold a public hearing on the matter for the CHLD. Since an increase in assessments is not proposed, the Code only requires the Notice to be published in a newspaper.
The Engineer’s Report proposes the assessment rates will not exceed the rate levied in Fiscal Year 23/24. No ballot procedure or special notice will be necessary to maintain these assessments. The Assessment District diagram and assessment rolls are contained in the Engineer’s Report.
ITEM 14 Agenda Packet Page 196
Subject: Citrus Heights Lighting District – Levy Assessments for Fiscal Year 24/25 Date: July 10, 2024
Attachments
1. Resolution No. 2024-____ A Resolution of the City Council of the City of Citrus Heights, California, to Confirm the Diagram and Assessment and to Levy Fiscal Year 24/25 Assessments for the Citrus Heights Lighting District.
2. Engineer’s Report
ITEM 14 Agenda Packet Page 197
RESOLUTION NO. 2024-___
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS
HEIGHTS, CALIFORNIA, TO CONFIRM THE DIAGRAM AND ASSESSMENT AND TO LEVY FISCAL YEAR 24/25 ASSESSMENTS FOR THE
CITRUS HEIGHTS LIGHTING ASSESSMENT DISTRICT
WHEREAS, on June 27, 2024 the City Council (Council) of the City of Citrus Heights (City) adopted its Resolution No. 2024-057, initiating proceedings pursuant to the Landscaping and Lighting Act of 1972, being California Streets and Highways Code Sections 22500 et seq. (Act), to levy and collect assessments for Fiscal Year 24/25 in the City of Citrus Heights Lighting Assessment District;
WHEREAS, as directed by this Council, the City Engineer has prepared and filed with the City Clerk a report for Fiscal Year 24/25 (Engineer’s Report) in accordance with the Act; WHEREAS, on June 27, 2024, the Council adopted its Resolution No. 2024-058, approving Engineer’s Report, and setting a public hearing date of July 10, 2024, at 6:00 p.m., or soon after, at the Citrus Heights Council Chambers located at 6360 Fountain Square Drive, Citrus Heights, California 95621;
WHEREAS, a notice of the public hearing was published in the form, time, and manner required by law;
WHEREAS, the Engineer’s Report is on file in the Office of the City Clerk and incorporated herein by reference; and
WHEREAS, at the public hearing, the Council duly heard all interested persons desiring to be heard.
NOW THEREFORE BE IT RESOLVED AND ORDERED, by the City Council of the City of Citrus Heights hereby declares that:
Section 1. Recitals. The foregoing recitals are true and correct and the City Council so finds and determines.
Section 2. Approval of Engineer’s Report. This Council hereby approves the Engineer’s Report as now on file with the City Clerk.
Section 3. Improvements Ordered. This Council hereby orders the proposed improvements described in the Engineer’s Report to be made.
Section 4. Special Benefit Finding. This Council hereby finds and determines that the assessment included in the Engineer’s Report assesses all of the subdivisions of land in the assessment district for the special benefits provided by the improvements in proportion to the special benefits to be received by such subdivision, respectively, from the improvements.
ITEM 14 Agenda Packet Page 198
Section 5. Confirmation of Assessment Diagram. This Council hereby confirms the diagram and the assessment now on file with it.
Section 6. Directive to file Diagram and Assessment. This Council hereby directs the City Clerk to file a certified copy of the diagram and the assessment as confirmed with the Sacramento County Auditor.
Section 7. Entry on the Roll. The Sacramento County Auditor is hereby requested to enter on the County Assessment Roll opposite each lot or parcel of land the amount assessed thereupon, as shown on the assessment filed by the City Clerk.
Section 8. Effective Date. This resolution shall take effect from and after the date of its passage.
The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original resolutions.
PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 10th day of July, 2024, by the following vote, to wit:
AYES: Council Members:
NOES: Council Members:
ABSTAIN: Council Members:
ABSENT: Council Members:
Bret Daniels, Mayor
ATTEST:
Amy Van, City Clerk
ITEM 14 Agenda Packet Page 199
ITEM 14 Agenda Packet Page 200
Citrus Heights Lighting District July 10, 2024
FY 2024/2025 Engineer’s Report Page i
CERTIFICATIONS
CITRUS HEIGHTS LIGHTING DISTRICT
(Pursuant to the Landscaping and Lighting Act of 1972)
Engineer’s Report for Fiscal Year 2024/2025
The undersigned respectfully submits the enclosed report as directed by the City Council.
DATED: ____________ __, 2024
CITY OF CITRUS HEIGHTS
By: __
Leslie Blomquist, P.E.
CITY ENGINEER
I HEREBY CERTIFY that the enclosed Engineer’s Report, together with Assessment and Assessment Diagram thereto attached, was filed with me on the ________ day of ______________, 2024.
Amy Van, City Clerk
City of Citrus Heights,
Sacramento County, California
By:
I HEREBY CERTIFY that the enclosed Engineer’s Report, together with Assessment and Assessment Diagram thereto attached, was approved and confirmed by the City Council of the City of Citrus Heights, California, on the _______________ day of __________________, 2024.
Amy Van, City Clerk
City of Citrus Heights,
Sacramento County, California
By: ______________________________
I HEREBY CERTIFY that the enclosed Engineer’s Report, together with Assessment and Assessment Diagram thereto attached, was filed with the County Auditor of the County of Sacramento on the _______________ day of __________________, 2024.
Amy Van, City Clerk
City of Citrus Heights,
Sacramento County, California
By: ______________________________
July 10
ITEM 14 Agenda Packet Page 201
Citrus Heights Lighting District July 10, 2024
FY 2024/2025 Engineer’s Report Page ii
Page ii
Table of Contents
Section I: Overview ................................................................................................................................. 1 Contents of the Engineer’s Report ............................................................................................... 1 Introduction and Background ....................................................................................................... 1 Section II: Plans and Specifications ..................................................................................................... 2 General Description of the District .............................................................................................. 2 Description of Services and Improvements to Be Maintained ..................................................... 2 Section III: District Budget ................................................................................................................... 3 Proposed Fiscal Year Budget ........................................................................................................ 3 Description of Budget Items ......................................................................................................... 4 Section IV: Method of Apportionment ................................................................................................ 5 General .......................................................................................................................................... 5 Special Benefit Analysis ............................................................................................................... 6 Assessment Methodology ............................................................................................................. 6 Rates ............................................................................................................................................. 7 Section V: Assessment Roll ................................................................................................................... 8 Section VI: Assessment Diagram ......................................................................................................... 8 Figure 1.1 ................................................................................................................................................. 9 Table 1.1................................................................................................................................................ 10 ITEM 14 Agenda Packet Page 202
Section I: Overview
A. Contents of the Engineer’s Report
This Report describes the District boundaries and the proposed improvements to be assessed to the property owners located within the District. The Report is made up of the following sections:
Section I: Introduction and Background – Provides a general introduction into the Report and provides background on the assessment.
Section II: Plans and Specifications – Contains a general description of the improvements that are maintained and serviced by the District.
Section III: Estimate of Costs – Identifies the cost of the maintenance and services to be provided by the District including incidental costs and expenses.
Section IV: Method of Apportionment – Describes the basis in which costs have been apportioned to lots and parcels within the District, in proportion to the special benefit received by each lot and parcel.
Section V: Assessment Roll – The assessment roll identifies the maximum assessment to be levied to each lot or parcel within the District.
Section VI: Assessment Diagram – Displays a diagram of the District showing the boundaries of the District.
For this Report, each lot or parcel to be assessed, refers to an individual property assigned its own Assessment Parcel Number by the Sacramento County Assessor’s Office as shown on the last equalized roll of the assessor.
B. Introduction and Background
County Service Area 1 (CSA-1) was created in 1986 by the Sacramento County Board of Supervisors (Board) by reorganizing five existing street light maintenance districts. CSA-1 provides street light services to those portions of Sacramento County that were unincorporated in 1986. Since that time, the Cities of Citrus Heights, Elk Grove and Rancho Cordova have incorporated, but street light services remained with CSA-1. On June 14, 2005 the County Board of Supervisors approved the establishment of separate zones within CSA-1 for each of the incorporated cities served. The City of Citrus Heights was identified as CSA-1 Zone 3.
The City of Citrus Heights (City) incorporated on January 1, 1997. In the time between when the City incorporated and assumed ownership of CSA-1 Zone 3, City staff worked with County staff regarding street light maintenance and repairs by forwarding requests for service from City residents to the County. CSA-1’s revenues were essentially fixed since the passage of Proposition 218 in 1996 and expenses (electricity, labor, materials, etc.) continued to rise. Ultimately, CSA-1 was forced to reduce staffing levels, which eventually increased the response time for repairs.
Believing the transfer of street light maintenance responsibilities and assessments from CSA-1 Zone 3 to the City was essential to improving maintenance response on City street lights, the Citrus Heights City Council adopted Resolution No. 2005-58 on June 22, 2005 advising the County Board of Supervisors of the City’s desire to detach Zone 3 from CSA-1.
ITEM 14 Agenda Packet Page 203
After working closely with CSA-1 and the Local Agency Formation Commission (LAFCO) over the next year, on June 8, 2006, the City Council adopted Resolution No. 2006-63 declaring its intent to form the Citrus Heights Lighting District. The final step in the process came on June 22, 2006, when the City Council adopted Resolution No. 2006-70 forming the Citrus Heights Lighting District (CHLD or District) pursuant to the Landscape and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code §22500 (1972 Act). Formation of the CHLD in this way allowed the City to continue to levy the direct assessment charges previously authorized under CSA-1. The City assumed revenues and maintenance responsibilities from Sacramento County at the start of Fiscal Year 2006/2007.
This Engineer’s Report (Report) has been prepared pursuant to the 1972 Act (Part 2 of Division 15 Sections 22500 through 22679 of the Streets and Highways Code) and describes the District and the proposed assessments for the annual update. The proposed assessments are based on the historical cost to maintain the improvements, energy rates, and historical information from neighboring jurisdictions.
Assessments will be applied to those parcels that receive a special benefit from street and safety lights.
Each parcel within the District is required to be assessed proportionately for the special benefits provided to the parcel from the improvements.
Section II: Plans and Specifications
A. General Description of the District
The boundaries of the Citrus Heights Lighting District are coterminous with the boundaries of the City of Citrus Heights (see Figure 1.1). Citrus Heights is located in the northernmost section of Sacramento County along Interstate 80 and covers approximately 14 square miles.
B. Description of Services and Improvements to be Maintained All lighting improvements and facilities maintained and serviced through District assessments are owned or operated by the City of Citrus Heights or Sacramento Municipal Utility District (SMUD).
For the purposes of the Report, charges are separated into two categories by type of light. Highway Safety Lights are those lights located at intersections, on major streets and along the rear of properties that abut major streets. Street Lights are all lights not designated as Highway Safety lights, primarily local street lighting. Maintenance services will be provided by City personnel, contractors, and SMUD. The District provides funding for all Street and Highway Safety Lighting services within the City, including, but not limited to the following activities:
• Maintenance, repair and replacement of street light poles and fixtures, including changing light bulbs, painting, photoelectric cell repair or replacement, and repairing damage caused by automobile accidents, vandalism, time and weather.
• Electrical conduit and pullbox repair and replacement due to damage by construction, vehicle accidents, and weather.
• Payment of the electrical bill for the existing street light system. • Responding to constituent and business inquiries and complaints regarding street lighting.
ITEM 14 Agenda Packet Page 204
• Remedial projects for major repairs or upgrading of facilities. Engineering services are provided by General Services Department staff or by consultant. • Installation of Highway Safety Lights for highway safety purposes only along major streets and at intersections. These Safety Lights are normally installed with new construction of signalized intersections, or as a condition of development. The capital costs are typically paid through the City’s Capital Improvement Program for newly signalized intersections and by the developer for new installations adjacent to new development construction. • Street light inventory database creation and maintenance, pole numbering, and mapping to establish and keep current the number of street lights that must be maintained, as well as the condition and location of these street lights as part of an effective maintenance program. • Acquisition of land, easements, and rights of way necessary to maintain the Street and Highway Safety Lighting system.
• Administration of the District.
Maintenance means the furnishing of services and materials for the ordinary and usual operation of the public lighting facilities. This includes repair, removal, or replacement of all or part of any of the improvements or appurtenant facilities necessary for the operation of the lighting improvements.
Service means the furnishing of all labor materials, equipment, and utilities necessary to maintain and operate all public facilities provided by the City.
Based upon current maintenance records, the combined number of Street Lights and Highway Safety Lights within the Citrus Heights Lighting District is 4,820.
Section III: District Budget
A. Proposed Fiscal Year Budget
Since taking over responsibility for the lighting district from the County in June 2006, the City has identified current revenue sources and developed a clear understanding of all District expenditures.
Additionally, the City has substantially improved the level of service related to street light and highway safety light maintenance and operations and refined the procedures guiding the annual maintenance contract to reduce expenditures to a minimum.
The 2024/2025 Fiscal Year funds collected through special assessments are projected to cover the majority of the District’s anticipated expenditures. However, as a result of the increased electrical power costs and ongoing repair related to aging equipment, there is a projected total shortfall of approximately $145,405.72. Costs for contract unscheduled maintenance work (materials & repairs for damages due to knockdowns and aging infrastructure) are difficult to predict each year. For FY 2024/2025, the estimated costs for unscheduled maintenance work is projected to be $95,000. Cost recovery related to insurance settlements on street light knockdowns will be pursued as appropriate.
In the past year, the City has converted existing street lights and added new energy efficient Light Emitting Diode (LED) fixtures with roadway projects; bringing the total to approximately 2,577 LED lights citywide (53.5% of the District’s total inventory).
ITEM 14 Agenda Packet Page 205
Staff continues to identify and evaluate additional measures to reduce District expenditures and offset rising electricity costs. In 2019, the City conducted a feasibility study evaluating the possibility to update various City-owned equipment and facilities with the goal of reducing energy costs. On April 8, 2020, the California Energy Commission (CEC) approved a low interest (1%) Energy Efficiency Loan for the implementation of an energy efficiency upgrade project consisting of a significant number of street light retrofits. In June 2021, a City-retained contractor began replacing existing street lights with LED fixtures, which was completed in October 2021. As a result of the LED upgrades, the City’s electrical bills from the Sacramento Municipal Utility District (SMUD) decreased on average by 9.6% for the six month period of December 2021 to May 2022 compared to the same timeframe the prior year.
In December 2022, the City began paying back the low interest loan from the CEC, which expense is included in Table 1.1 at the end of this report. The bi-annual loan payment of $11,577.86 is paid for utilizing the energy savings reflected in the lower utility bills. After the 20 year payback period, District expenditures will decrease by the yearly loan payment amount.
In addition, staff regularly work with SMUD to ensure accurate billings, including quantities, type, and wattages for the entire District inventory. As street light fixtures are updated, SMUD reflects these changes in monthly utility billings.
No major expansion of the existing system, except when included in major transportation projects funded by grants or new development projects, will be considered until additional revenues can be identified to cover the initial and ongoing costs associated with an expansion.
The proposed District budget is summarized in the Budget Analysis shown on Table 1.1, including the estimated costs to provide the improvements, the collection of administrative costs and the special benefit assessment (Balance to Levy).
B. Description of Budget Items
The following is a brief description of the various components of the District budget including the sources and uses of funds, which are included in Table 1.1.
Sources of Funds – This includes the sources of funds used by the District in maintaining and servicing lighting improvements. This may include interest on any fund balance, special assessments, cost recovery and other sources.
• Interest on Fund Balance – Includes any interest earned on the balances in the District’s fund. • Special Assessments – Revenue received from assessments levied on properties within the District that benefit from the street and highway safety lights. • Cost Recovery – Revenue from cost recovery efforts associated with insurance settlements on knockdowns and/or damage to street lights and highway safety lights. • Other Revenue – Contributions from the City’s General Fund or other source to offset excess expenditures.
Uses of Funds – This includes the costs of maintaining and servicing lighting improvements. This may include, but is not limited to, the costs for labor, utilities, equipment, supplies, repairs, replacements ITEM 14 Agenda Packet Page 206
and upgrades that are required to properly maintain the items that provide a direct benefit to the District.
• Electrical Costs – Includes the cost of providing electricity to the lights. Additionally, some lights are maintained by SMUD, the cost for maintenance of these lights is also included on the utility bill.
• Professional Services – Includes costs for the City’s consultant to verify that all assessor information is correct for each parcel on the assessment role for the district. The consultant also incorporates all new parcels into the role, assessment collection fees charged by the Sacramento County Assessor’s office to collect the District assessments from property owners and disperse those proceeds to the City. Also includes costs charged by Sacramento County to levy each parcel with the approved assessment.
• Contract Maintenance (Scheduled) – Includes the contract labor associated with the monthly maintenance of the street lights and the cost of preparing and maintaining the light inventory. • Contract Maintenance (Unscheduled) – Includes work by the contractor for repairs & materials for aging infrastructure, knock-down repairs & replacements, and other work not included in the monthly scheduled maintenance program.
• Construction – Funds set aside for special projects to upgrade street and safety lights and related facilities.
Section IV: Method of Apportionment
A. General
The 1972 Act permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements, which include the construction, maintenance, and servicing of street lights, traffic signals, landscaping, parks and drainage facilities.
Streets and Highways Code Section 22573 requires that maintenance assessments be levied according to benefit rather than the assessed value.
“The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.”
Section 22574 of the 1972 Act also allows the designation of zones of benefit within an assessment district if “by reason of variations in the nature, location, and extent of the improvements, the various areas will receive differing degrees of benefit from the improvements.” In addition, Article XIIID and the Implementation Act require that a parcel’s assessment may not exceed the reasonable cost for the proportional special benefit conferred to that parcel. Article XIIID and the Implementation Act further provides that only special benefits are assessable and the City must separate the general benefits from the special benefits. They also require that publicly owned properties which specifically benefit from the improvements be assessed.
ITEM 14 Agenda Packet Page 207
B. Special Benefit Analysis
All properties within the District benefit equally from the enhanced safety provided by Highway Safety Lights as roadways and major intersections are illuminated. This lighting assists drivers traveling to or from a property in seeing traffic controls (stop signs, yield signs), in reading street name signs, and identifying pedestrians that may be attempting to cross the street after dark. These features also assist emergency service providers (police, fire, etc.) to respond and locate properties within the District.
In addition to the Highway Safety Light special benefit, individual parcels may receive special benefit from the presence of a Street Light on or near the parcel which enhances safety/security in the area.
For a parcel to receive this safety/security benefit from street lighting, fifty percent or more of the property’s frontage must be illuminated (based on the road width and spacing of the lights found in the County of Sacramento Improvement Standards). The Street Lighting service charge is apportioned only to those parcels that benefit directly from street lighting. A distinction is made between residential benefit parcels and non-residential benefit parcels based on the zoning of the parcel. This results in a flat rate service charge on each residential benefit parcel and a service charge per front foot on each non-residential benefit parcel.
The formula used for calculating the District assessment reflects the composition of the parcels, the improvements and the services provided, and fairly proportions the costs based on special benefit to each parcel. Only parcels receiving benefit from Street Lights and Highway Safety Lights will be assessed.
General Benefits
There are no general benefits related to Highway Safety Lights or Street Lights.
C. Assessment Methodology
When the original CSA-1 was established the assessment methodology was as follows:
Highway Safety Lighting – All properties are considered to benefit equally from Safety Lighting, as defined above in Special Benefit Analysis. As such, all parcels within CSA-1 were levied a flat rate calculated by the following formula:
Safety Light Maintenance Cost/Total Parcels = Levy per parcel Street Lighting – Only properties that benefit from a street light are levied this assessment. Service charges for parcels that benefit from both safety and street lights are classified as residential parcels or non-residential parcels with separate services charges as follows:
Residential Parcels (Zoned RD1, RD2, RD3, RD4, RD5, RD7): The service charge for a residential parcel was levied utilizing the following formula:
Street Light Maintenance Cost * % of Residential lights / Residential Parcels = Levy per residential parcel
Non-Residential Parcels (all other zoning): The service charge for a residential parcel was levied utilizing the following formula:
ITEM 14 Agenda Packet Page 208
Street Light Maintenance Cost * % of Non-Residential lights / Non- Residential Front Footage of Parcels = Levy per linear feet of non-residential front footage Levy per linear feet of non-residential front footage * Non-Residential Parcel Front Footage = Levy per Parcel
The passage of Proposition 218 in 1996 mandated that assessment increases must be approved by a two-thirds vote of the assessed property owners. As a result, the assessment rates for the Sacramento County’s CSA-1 were essentially frozen at the levels in effect at that time. These same rates remained in place and were carried over in 2006 upon creation of the Citrus Heights Lighting District, and have not increased since then. The current assessment methodology is therefore:
Highway Safety Lighting – All properties are considered to benefit equally from Safety Lighting, as defined above in Special Benefit Analysis. The service charge per parcel is equal to $2.56 per year.
Street Lighting – Only properties that benefit from a street light are levied this assessment. Service charges for parcels that benefit from both safety and street lights are classified as residential parcels or non-residential parcels with separate services charges as follows:
Residential Parcels (Zoned RD1, RD2, RD3, RD4, RD5, RD7): The service charge for a residential parcel is equal to $15.32 per year.
Non-Residential Parcels (all other zoning): The service charge for a non-residential parcel is equal to $0.2519 per linear foot length of the parcel’s public street frontage.
Exempt – Exempt from the assessment would be the areas of public streets and other roadways (typically not assigned an APN by the County), dedicated public easements, open space areas and rights of ways including public greenbelts and parkways. Also exempt from assessment would be utility rights of ways, common areas (such as in condominium complexes), landlocked parcels, small parcels vacated by City/County, bifurcated lots, and any other property that cannot be developed.
These types of parcels have little or no value and therefore do not benefit from the improvements.
Land use classification for each parcel is based on the Sacramento County Assessor’s Roll. Zoning classification for each parcel is based on the City of Citrus Heights Zoning Map.
D. Rates
The Fiscal Year 2024/2025 assessment rates for the District are proposed to remain the same as Fiscal Year 2023/2024. The following shows the assessments proposed to be levied:
Street Lighting
Residential (Zoned RD1, RD2, RD3, RD4, RD5, RD7) $15.32 per parcel Non-Residential (all other zones) $0.2519 per front foot Highway Safety Lighting
All parcels (except ‘Exempt’) $2.56 per parcel
ITEM 14 Agenda Packet Page 209
Section V: Assessment Roll
Parcel identification, for each lot or parcel within the District, shall be the parcel as shown on the Sacramento County Assessor’s map for the year in which this Report is prepared.
Non-assessable lots or parcels include all developed non-residential parcels, vacant parcels, government-owned and public utility-owned parcels, land principally encumbered with public rights of way and other tax exempt parcels such as common areas or open space for which the County does not generate a tax bill. These parcels will not be assessed for the District improvements.
A listing of parcels assessed within this District, along with the proposed assessment amounts, is on file with the City Clerk, and by reference is made part of this Report. Said listing of parcels to be assessed shall be submitted to the County Auditor/Controller and included on the property tax roll for each parcel in FY 2024/2025. If any parcel submitted for collection is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, a corrected parcel number and/or new parcel numbers will be identified and resubmitted to the County Auditor/Controller. The assessment amount to be levied and collected for the resubmitted parcel(s) shall be based on the method of apportionment and the assessment rate approved in this Report. Therefore, if a single parcel has changed to multiple parcels, the assessment amount applied to each of the new parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment.
Section VI: Assessment Diagram
The boundaries of the District are coterminous with the boundaries of the City of Citrus Heights (see Figure 1.1).
ITEM 14 Agenda Packet Page 210
FIGURE 1.1
Lighting District Boundary
ITEM 14 Agenda Packet Page 211
TABLE 1.1
Citrus Heights Lighting District
Budget Analysis
DESCRIPTION FY 22/23
ACTUAL (5)
FY 23/24
ACTUAL
FY 24/25
PROPOSED
BUDGET
SOURCES OF FUNDS:
Interest on Fund Balance $0.00 $0.00 $0.00
Special Assessments $340,443.63 $332,883.89 $333,000.00 Shared Maintenance Cost Reimbursement (1) $383.82 $125.28 $130.00 Total Sources of Funds: $340,827.45 $333,009.17 $333,130.00 USES OF FUNDS:
Advertising $1,226.73 $790.00 $1,500.00
Utilities (2) $249,858.18 $245,551.96 $245,000.00
CEC Loan Repayment (3) $23,155.72 $23,155.72 $23,155.72 Professional Services $4,813.27 $5,066.60 $6,000.00
Contract Maintenance (Scheduled) $90,597.88 $90,517.44 $91,000.00 Membership Dues $6,021.40 $853.70 $3,500.00
Contract Maintenance (Unscheduled) (4) $65,797.34 $83,581.03 $95,000.00 Cost Allocations $12,611.00 $12,989.00 $13,380.00
Total Uses of Funds: $454,081.52 $462,505.45 $478,535.72 FUND BALANCE:
Beginning Fund Balance (July 1st) $0.00 $0.00 $0.00
Add Sources of Funds $340,827.45 $333,009.17 $333,130.00 Subtract Uses of Funds $454,081.52 $462,505.45 $478,535.72 Fund Shortfall: ($113,254.07) ($129,496.28) ($145,405.72)
OTHER FUNDING SOURCES
Measure A Maintenance Funds (Fund 210) to
cover District shortfall $113,254.07 $129,496.28 $145,405.72 Ending Fund Balance (June 30th) $0.00 $0.00 $0.00
(1) The costs for four streets lights located on Antelope Road, near the I-80 Ramps, are shared with Caltrans (Caltrans reimburses the City for 50% of associated costs). (2) Includes SMUD maintenance costs – Certain street lights are mounted on SMUD-owned power poles.
The District reimburses SMUD for the operation and maintenance of these lights. (3) The city received a low interest (1%) Energy Efficiency Loan from the California Energy Commission (CEC) to cover the capital costs to convert approximately 593 street lights to energy efficient models.
Actual energy cost savings will be used to repay the loan. (4) Contract Maintenance (unscheduled) work includes knock-downs, repairs & materials for aging infrastructure, etc.)
(5) Summary has been updated since the FY 23/24 Engineer’s Report was approved in July 2023. The updated numbers reflect additional expenditures and revenue received after FY 22/23 close.
ITEM 14 Agenda Packet Page 212
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CITY OF CITRUS HEIGHTS
CITY COUNCIL STAFF REPORT
MEMORANDUM
DATE: July 10, 2024
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FROM: Regina Cave, General Services Director
Mary Poole, Operations Manager
SUBJECT: Resolution Confirming Report of Delinquent Solid Waste Charges and Ordering Collection of Delinquencies on the Property Tax Roll Summary and Recommendation
Staff recommends the City Council:
1) Conduct a Public Hearing on the Report of Delinquent Solid Waste Charges; and 2) Adopt Resolution No. 2024 - ___, A Resolution of the City Council of Citrus Heights Confirming a Report of Delinquent Solid Waste Charges and Ordering Collection of Delinquencies on the Property Tax Roll.
Fiscal Impact
There is no impact to the FY 24/25 budget. This item is included in the annual solid waste budget. The County charges an annual fee of $35.00 plus 62 cents per levy to record delinquent accounts on the tax roll.
Background and Analysis
Section 74-169 of the Municipal Code directs that solid waste charges be a lien against the property to which solid waste services are provided.
Government Code Sections 38790.1 and 25831 authorize the City to collect delinquent solid waste charges on the property tax roll. Delinquencies are charges that are at least three months overdue. Amounts on the property tax roll are collected by the County on the annual property tax bills in two equal installments that must be paid by December and April.
A report of delinquencies was prepared by Republic Services and filed with the City Clerk. It lists amounts that were originally due on March 1, 2024 or earlier, and remained unpaid at the ITEM 15 Agenda Packet Page 213
Subject: Resolution to Record Delinquent Solid Waste Charges on Tax Roll Date: July 10, 2024
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time the report was filed. By its Resolution No. 2024-046, adopted on June 13, 2024, the City Council declared its intention to collect delinquencies on the property tax roll and set a public hearing on the report of delinquencies for the July 10, 2024 City Council meeting. Staff mailed notice of the public hearing to each property owner listed on the report at least ten days prior to the scheduled public hearing. The purpose of the public hearing is to give affected property owners a chance to dispute their inclusion on the report (or the amount of the delinquency) before the amount is turned over to the County for collection on the property tax bill.
The original report as filed listed 1419 delinquent accounts, with a past due balance of $707,088.84 and penalties of $70,708.88 for a total of $777,797.72.
An updated report has been filed with the City Clerk to remove delinquencies that have been paid since the original report was produced. The attached resolution confirms that revised report.
The City Council may also make other changes to the report after hearing objections and protests at the public hearing,
It is possible that some payments will be made to Republic Services after the adoption of tonight’s resolution. If such payments are made prior to submission of the report to the County, staff and Republic Services will endeavor to remove the paid delinquencies from the report.
Attachments
1) Resolution No. 2024-_____ , a Resolution of the City Council of the City of Citrus Heights Confirming a Report of Delinquent Solid Waste Charges and Ordering Collection of Delinquencies on the Property Tax Roll
ITEM 15 Agenda Packet Page 214
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RESOLUTION NO. 2024-___
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CITRUS HEIGHTS CONFIRMING A REPORT OF DELINQUENT
SOLID WASTE CHARGES AND ORDERING COLLECTION OF
DELINQUENCIES ON THE PROPERTY TAX ROLL
WHEREAS, pursuant to Section 74-169 of the Municipal Code, solid waste charges constitute a lien against the property to which services are provided; WHEREAS, Government Code Sections 38790.1 and 25831 authorize the City to collect delinquent solid waste charges on the property tax roll; WHEREAS, a report of delinquencies, listing each delinquent parcel and the amount of its delinquency, has been prepared and placed on file in the Office of the City Clerk and made available for public inspection (the “Report’);
WHEREAS, on June 13, 2024, by its Resolution No. 2024-046 (the “Resolution of Intention”), the City Council declared its intention to collect delinquent solid waste fees on the 2024-25 property tax roll;
WHEREAS, the Resolution of Intention set July 10, 2024 at 6:00 p.m. in the City Council Chambers, 6360 Fountain Square Drive, Citrus Heights as the time and place for a public hearing on the Report and any objections or protests to the Report (the “Public Hearing”); WHEREAS, notice of the Public Hearing and the filing of the Report was mailed to the landowners listed on the Report at least ten days prior to the date of the Public Hearing; WHEREAS, prior to the Public Hearing, a revised report of delinquencies was prepared to omit delinquencies that have been paid since the Report was originally prepared (the “Revised Report”):
WHEREAS, the Revised Report, which contains no additional delinquencies that were not also on the original Report, is on file in the Office of the City Clerk, available for public inspection, and incorporated herein by reference;
WHEREAS, at the appointed time and place, the City Council held the Public Hearing and heard objections and protests from all interested persons; and WHEREAS, the City Council desires to confirm the Revised Report, without additional changes and to cause the delinquencies listed on the Revised Report to be collected by the County along with property taxes.
NOW THEREFORE BE IT RESOLVED that:
1. Pursuant to Section 258319(c) of the Government Code, the City Council confirms the Revised Report without additional changes.
ITEM 15 Agenda Packet Page 215
Subject: Resolution to Record Delinquent Solid Waste Charges on Tax Roll Date: July 10, 2024
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2. The City Council directs staff to file a certified copy of the Revised Report with the County Auditor for collection on the 2024-25 Property Tax Roll, and take any other action necessary to cause such collection.
3. The delinquent charges (including penalties and interest) listed on the Revised Report shall constitute special assessments against the respective parcels of land and are a lien on the property for the amount of the delinquency. The assessment shall be collected at the same time and in the same manner as ordinary county ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure and sale in case of delinquency as provided for those taxes. All laws applicable to the levy, collection, and enforcement of county ad valorem property taxes shall be applicable to the assessment, except that if any real property to which the lien would attach has been transferred or conveyed to a bona fide purchaser for value, or if a lien of a bona fide encumbrancer for value has been created and attaches thereon, prior to the date on which the first installment of the taxes would become delinquent, then the lien that would otherwise be imposed by this section shall not attach to the real property and the delinquent fees, as confirmed, relating to the property shall be transferred to the unsecured roll for collection.
4. Staff is authorized to remove such items from the Revised Report as are paid prior to the submission of the Revised Report to the County.
PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 10th day of July, 2024, by the following vote, to wit:
AYES: Council Members:
NOES: Council Members:
ABSTAIN: Council Members:
ABSENT: Council Members:
Bret Daniels, Mayor
ATTEST:
Amy Van, City Clerk
ITEM 15 Agenda Packet Page 216