Lathrop City Council
June 13, 2022

CITY OF LATHROP

MAINTENANCE DISTRICT ANNUAL

ASSESSMENTS
June 13, 2022Item No. 5.1

OVERVIEW

1. Maintenance Districts •What are Maintenance Districts?•City’s Maintenance Districts•Maintenance Districts Annual Review•Fiscal Assessment (Summary and by District) 2 2. Conduct Public Hearing•Approve Fiscal Year 2022/23 Assessment of Maintenance Districts•Next Steps for Maintenance Districts WHAT ARE MAINTENANCE DISTRICTS?
Special assessments (taxes) provide benefitting propertyowners the opportunity to pay for enhanced landscaping andrelated improvements, maintenance and services beyond thosegenerally provided by the City.Most maintenance districts are formed at the time a development is built. 3 Currently, about 1 in 3 properties in
California is part of an assessment district.

CITY’S MAINTENANCE DISTRICTS
The City’s Districts have been divided into benefit zones to establisha reasonable, fair, and consistent method of apportioning specialbenefits to each parcel.In Lathrop, Districts generate revenue from special assessmentswhich provide funding for various services such as:
Parks – including playground equipment, basketball courts and restrooms
Public lighting facilities – including street lighting and traffic signalsPublic Safety – Police and Animal ControlStreetscapesStorm drains/Flood control Assessment revenues can only be increased by the limits set at thetime the district was created. (e.g.: escalation factor) City’s Districts:1. Industrial Lighting2. Residential Lighting3. Mossdale Landscape and Lighting

4. Stonebridge Landscape5. Stonebridge Drainage
and Lighting

6. Storm Drain Zone 1 7. Storm Drain Zone 1A 8. Woodfield 4 MAINTENANCE DISTRICTS ANNUAL REVIEW
Intent to Levy
• May 16, 2022 – Council
approved the process to initiate the annual Intent to Levy Assessments Public Hearing
Notices
• May 25 & June 1, 2022
– Notice of Public Hearing published in Manteca Bulletin Public Hearing
• June 13, 2022 – Public
Hearing scheduled to adopt the assessment rates
Maintenance Districts rates are reviewed annually by staff before they are presented to Council for consideration and approval. 5 FISCAL ASSESSMENT – SUMMARY
•Districts are designed to be self-sufficient entities meaning its revenues should equal its expenditures.
•Districts with an escalator are more sustainable long-term than the ones without. Lathrop has created districts with and without escalation factors. •When Districts’ revenues are not enough to support its spending, a General Fund subsidy is required.

Key TermsEscalation Factor: Factor used to increase revenues as needed (usually between 2-5%).

General Fund Subsidy: General Fund contribution when districts’ revenues cannot cover all of its expenditures. 6 Districts can only be
modified (add an escalation
factor or increase its annual
rate) by a Proposition 218
process where the majority
of the residents in the
district agree to the
increase.

FISCAL ASSESSMENT – BY DISTRICT
Street Lighting
• Established in 1999 to support the maintenance, operations, and services of the City’s Industrial and Residential Street Lighting improvements.
• Annual escalator for Residential is the higher of 3% or the Consumer Price Index (CPI). CPI for FY 22/23 is 4.24%.
• Annual escalator for Industrial is the annual Consumer Price Index (CPI), not to exceed 3%. CPI for FY 22/23 is 4.24%.
7 For FY 22/23, General Fund contribution of $22,646 is needed.

Major Expense Categories: Scheduled Maintenance and
Streetlight Repairs
 Electric Charges for
Streetlights (approx. 526 – per
PG&E data as of May 2021)
Street Lighting Residential (4.24%) Industrial (3%)
Beginning Fund Balance: $ 217,387 $ 141,052
Assessment Revenues 140,307 61,621Assessment Expenses (131,943) (61,433)General Benefit Contribution (GF) 9,360 13,286 Ending Fund Balance: $ 235,111 $ 154,526
FISCAL ASSESSMENT – BY DISTRICT
Mossdale Landscape & Lighting
• Established in 2004 to support the maintenance, operations, and services of the Mossdale Landscape and Lighting improvements. • 3% annual escalator (Proposed assessment of $301.70 – max assessment of $301.70).
8 Mossdale Landscape and Lighting
Beginning Fund Balance: $ 305,336
Assessment Revenues 677,630Assessment Expenses (737,536) Ending Fund Balance: $ 245,430
Major Expense Categories: Contracted Landscaping
Services
 Water & Electric Charges for
Streetlights (approx. 823 – per
PG&E data as of May 2021)
FISCAL ASSESSMENT – BY DISTRICT
Storm Drain Zone 1
• Supports the maintenance, operations, and
services of the Zone 1 Storm Drainage Improvements.
• Rate unchanged since Fiscal Year 1996/97 –
District created without an escalator.
9 Storm Drain Zone 1
Beginning Fund Balance: $ 33,218
Assessment Revenues 239,141Assessment Expenses (352,007)General Benefit Contribution (GF) 106,000 Ending Fund Balance: $ 26,352
Major Expense Categories: Personnel Communication Equipment Contracted Services For FY 22/23, General Fund contribution of $106,000 is needed.

FISCAL ASSESSMENT – BY DISTRICT
Storm Drain Zone 1A (Crossroads)
• Supports the maintenance, operations, and services of the Crossroads Storm Drainage improvements.
• Rate unchanged since Fiscal Year 1996/97 – District created without an escalator.
10 Storm Drain Zone 1
Beginning Fund Balance: $ 39,267
Assessment Revenues 113,362Assessment Expenses (143,675)General Benefit Contribution (GF) 50,000 Ending Fund Balance: $ 58,954
Major Expense Categories: Personnel Maintenance and
Repairs
 Communication
Equipment
 Water & Electric
Charges
For FY 22/23, General Fund contribution of $50,000 is needed.

NEXT STEPS
City Council’s Action:
• Hold a Public Hearing;• Approve Fiscal Year 2022/23 Assessment of Maintenance Districts 11 District FY 21/22 Rates
FY 22/23
Proposed Rates Change Notes
Street Lighting - Industrial $ 8.10 to $ 41.28 $ 8.34 to $ 42.52 $0.24 to $1.24 3% max escalatorStreet Lighting - Residential $ 8.27 to $ 62.87 $ 8.62 to $ 65.54 $0.35 to $2.67 4.24% CPI escalatorMossdale Landscaping and Lighting $ 292.91 $ 301.70 $ 8.79 Max assessment of $301.70 (3%) Storm Drain Zone 1 $ 112.52 $ 112.52 $ 0 Rate unchanged since FY 1996/97Storm Drain Zone 1A (Crossroads) $ 199.92 $ 199.92 $ 0 Rate unchanged since FY 1996/97 City Council’s Action Needed:
• Approve the final Engineer’s Report for all Districts and order the levy and collection of annual assessments for FY 2022/23.
• Once approved, the assessment information will be submitted to the County Auditor-Controller’s Office for levy.