City of Corona
Staff Report
400 S. Vicentia Ave.
Corona, CA 92882
File #: 22-0544
REQUEST FOR CITY COUNCIL ACTION
DATE: 07/06/2022
TO: Honorable Mayor and City Council Members
FROM: Finance Department
SUBJECT:
Public Hearing confirming the diagram and assessment within Zone 19 of Landscape Maintenance District No. 84-2 for Fiscal Year 2023.
EXECUTIVE SUMMARY:
Adoption of the recommended resolution is the last step of the annual proceedings for the levy and collection of the special assessment for Zone 19 of Landscape Maintenance District No. 84-2 (“LMD 84-2” or “District”) for Fiscal Year 2023. The City Council will conduct a public hearing to afford all interested parties an opportunity to make verbal or written comments on the proposed annual assessment.
At the conclusion of the hearing, it is recommended that the City Council adopt the said resolution confirming the diagram and assessments for the District for Fiscal Year 2023, which will constitute the levy of the assessment for the maintenance and servicing of public landscaping and appurtenant facilities within the District, in accordance with the Streets and Highways Code.
RECOMMENDED ACTION:
That the City Council adopt Resolution No. 2022-069, confirming the diagram and assessment within Zone 19 of Landscape Maintenance District No. 84-2 for Fiscal Year 2023.
BACKGROUND & HISTORY:
Zone 19 of LMD 84-2 was established in 1986 in accordance with the provisions of the Landscaping and Lighting Act of 1972 (the "1972 Act"). The purpose of the District is to provide landscape maintenance and operating services for the public landscaping and appurtenant facilities within the District's boundaries.
The annual assessments proposed to be levied within the District will pay for the maintenance services during Fiscal Year 2023. The services provided include all necessary operations, administration, capital replacements, and maintenance required to keep the above-mentioned City of Corona Page 1 of 3 Printed on 6/30/2022
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File #: 22-0544
administration, capital replacements, and maintenance required to keep the above-mentioned improvements in a healthy and satisfactory working condition.
ANALYSIS:
The State of California Street and Highways Code Section 22500 requires an annual review of the assessments levied by the assessment districts formed under the 1972 Act. In order to levy and collect special assessments within such districts, an Engineer's Report must be prepared, which provides details on the improvements that are maintained and the estimated budgets for each district.
On April 6, 2022, the City Council adopted Resolution No. 2022-030, to initiate the proceedings to levy and collect assessments for the District for Fiscal Year 2023, appointed Spicer Consulting Group, LLC as the engineer of record, and ordered the preparation of an Engineer's Report for the District.
On June 1, 2022, the City Council adopted Resolution No. 2022-051, to declare the City’s intention to levy and collect assessments within the District for Fiscal Year 2023, approve the preliminary Engineer’s Report (the “Preliminary Report”), and provide a notice of public hearing to consider the proposed assessments. A notice of public hearing was published in the local newspaper on June 22, 2022.
Attached is the final Engineer’s Report (the “Report”) as it pertains to the District, which is consistent with the Preliminary Report. The Report includes a detailed description of the existing improvements within the District, the estimated maintenance costs, the method of assessment apportionment for each lot or parcel within the District boundaries, and a diagram showing the boundaries of the District. The Report also provides an analysis of the District’s financial status.
FINANCIAL IMPACT:
The cost of operation, servicing, and maintenance of the District will be funded by the assessments levied and collected within the District. For Fiscal Year 2023, it is projected that the assessment revenues will be insufficient to cover the operating costs for the District during the same fiscal period, resulting in an estimated operating deficit of $103,368. The estimated deficit is due to the rising costs of maintenance services, and the District does not have a built-in escalator for the annual levy to keep up with the expenditures.
To address the estimated deficit, an inter-fund loan from another funding source will be initiated if needed, based on the fiscal year-end actual fund balances. This is a one-time solution to address the immediate need. Staff will return to the City Council at the end of the fiscal year with the repayment term and the funding source if a loan is needed.
Staff is currently assessing options to ensure the financial sustainability of zones within the District that have funding shortages and will return to the City Council at the 2022 Fall Workshop to discuss options for addressing shortfalls within the District.
Below is an overview of the District’s estimated assessment revenues and proposed expenditures for City of Corona Page 2 of 3 Printed on 6/30/2022
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File #: 22-0544
Below is an overview of the District’s estimated assessment revenues and proposed expenditures for Fiscal Year 2023. Detailed information can be found in the attached Report.
Estimated
Costs
Estimated
Assessment
Revenue
Estimated
Excess/(Deficit)
Actual
Assessment
YOY % Change
568,560 465,192 (103,368) 0.00%
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the common sense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action merely declares the City's intent to levy and collect assessments within the District for Fiscal Year 2023, and there is no possibility that adopting the resolution will have a significant effect on the environment. Therefore, no environmental analysis is required.
PREPARED BY: LIEN-CHI CANTUBA, ACCOUNTING SUPERVISOR
REVIEWED BY: KIM SITTON, FINANCE DIRECTOR
Attachments:
1. Exhibit 1 - FY 2023 LMD 84-2 Engineer’s Report, as it pertains to the District.
2. Exhibit 2 - Resolution No. 2022-069
City of Corona Page 3 of 3 Printed on 6/30/2022
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