Item 251/2024
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: William E. Murray
Dept:
City Manager Dept: Public Works
Date: 6/25/2024
Subject: Adoption of Resolutions for: Initiating Proceedings for the levying of Fiscal Year 2024-25 Assessment for the City of Garden Grove Street Lighting District, Street Lighting District No. 99-1, and Park Maintenance District; the Engineer's Report; and Intention for Fixing a Time and Date to Conduct a Public Hearing. (Action Item)
OBJECTIVE
To adopt Resolutions initiating proceedings for the levying of FY 2024-25 assessments for (1) the City of Garden Grove Street Lighting District, (2) the City of Garden Grove Street Lighting District No. 99 -1, and (3) the City of Garden Grove Park Maintenance District (hereafter collectively referred to as "Districts"), to adopt the Resolution approving the Engineer’s Reports for those Districts; and to adopt the Resolutions of Intention for the levying of FY 2024-25 assessments for those Districts.
BACKGROUND
Annually, the City of Garden Grove levies assessments against properties within the City to pay for the installation, maintenance, and servicing of public street lighting and park maintenance. Following the passage of Proposition 218 in 1996 which added Article XIIID to the State Constitution, the City has continued to levy assessments within the District at the current rate since Proposition 218 allowed certain exemptions for existing assessments as set forth in Article XIIID, Section 5(a). When revenues f rom the assessment are less than the cost for the services provided by the Districts, the City has to make contributions. Any increase to the assessment, including the addition of a CPI escalator, will require approval from the majority of property owners who are subject to the assessment.
DISCUSSION
The first step in this process is to adopt the Resolutions initiating proceedings and order the City Engineer to prepare and file reports for the Districts. The Resolutions and Engineer's Report for each Dis trict are attached and the reports contain a general synopsis, financial summaries, a diagram showing district boundaries and the methodology used to determine the assessment levels per land use category. The following table summarizes district costs, Item 251/2024
assessment levels and general fund contributions to cover each District’s balance. The cost for each property owner was calculated based on benefits received from each district.
FY2024-25 District Assessments
District Name Assessment
Revenue
General Fund
Contribution
Total District
Cost
Street Lighting
Assessment
$1,357,345 $471,692 $1,829,037
99-1 Lighting District $9,879.14 $2,205.55 $12,084.69
Park Maintenance
District
$710,667 $2,429,033 $3,139,700
The rates for each District for FY 2024-25 are the same rates adopted by the City Council in FY 202 3-24. The second step for City Council is to adopt the Resolution approving the attached City Engineer’s Report, and the third and final step is the adoption of a Resolution declaring the intention to levy and collect assessments for each District. Per these resolutions, the public hearing date has been set for July 9, 2024 at 6:30pm.
FINANCIAL IMPACT
The FY2024-25 assessment revenues are $1,357,345, $9,879.14, and $710,667 for Street Lighting District, Street Lighting District 99 -1, and Park Maintenance District respectively.
The assessment rate for each District are currently at the maximum level, and is insufficient to cover the cost for the services. Therefore, the City has to make contribution s from its General Fund to each District with a total of $2.9 million in FY2024-25.
RECOMMENDATION
It is recommended that the City Council:
Adopt the attached Resolutions initiating the proceedings and requesting the Engineer to prepare and file a report for: 1) the Street Lighting District, 2) the Street Lighting District No. 99-1, and 3) the Park Maintenance District;
Adopt the attached Resolutions approving the Engineer’s Reports for 1) the Street Lighting District, 2) the Street Lighting District No. 99-1, and 3) the Park Maintenance District; and
Adopt the attached Resolutions of Intention for: 1) the Street Lighting District, 2) the Street Lighting District No. 99-1, and 3) the Park Maintenance District.
By: Alexa Viramontes, Sr. Administrative Analyst
Item 251/2024
ATTACHMENTS
1. Resolution Initiating Proceedings - Garden Grove Street Lighting District
2. Resolution Initiating Proceedings - Garden Grove Street Lighting District 99-1
3. Resolution Initiating Proceedings - Garden Grove Park Maintenance District
4. Resolution to Approve the City Engineer’s Report for the Levy of Annual Assessment - Garden Grove Lighting District
5. Resolution to Approve the City Engineer’s Report for the Levy of Annual Assessment - Garden Grove Lighting District 99-1
6. Resolution to Approve the City Engineer’s Report for the Levy of Annual Assessment- Garden Grove Park Maintenance District
7. Resolution of Intention to Levy and Collect Assessments - Garden Grove Street Lighting District
8. Resolution of Intention to Levy and Collect Assessments - Garden Grove Street Lighting District 99-1
9. Resolution of Intention to Levy and Collect Assessments - Garden Grove Park Maintenance District
10. FY2024-25 Engineer’s Report - Street Lighting District
11. FY2024-25 Engineer’s Report - Street Lighting District 99-1
12. FY2024-25 Engineer’s Report - Park Maintenance District