CITY OF LATHROP
MAINTENANCE DISTRICT ANNUAL
ASSESSMENTS
June 12, 2023
Item No. 5.2
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 2023/24 Assessment of
Maintenance Districts
•Next Steps for Maintenance Districts
WHAT ARE MAINTENANCE DISTRICTS?
Special assessments (taxes) provide benefitting property owners the opportunity to pay for enhanced landscaping and related improvements, maintenance and services beyond those generally 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 establish a reasonable, fair, and consistent method of apportioning special benefits to each parcel.
In Lathrop, Districts generate revenue from special assessments which 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 the time the district was created. (e.g.: escalation factor) City’s Districts:
1. Industrial Lighting
2. Residential Lighting
3. Mossdale Landscape
and Lighting
4. Stonebridge Landscape
5. 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 8, 2023 – Council
approved the process to
initiate the annual Intent
to Levy Assessments
Public Hearing
Notices
• May 24 & May 31, 2023
– Notice of Public Hearing
published in Manteca
Bulletin
Public Hearing
• June 12, 2023 – 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 Terms
Escalation 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 2022 is 4.88%.
• Annual escalator for Industrial is the annual Consumer Price Index (CPI), not to exceed 3%. CPI for FY 2022 is 4.88%.
7 For FY 23/24, General Fund contribution of $23,400 is needed.
Major Expense Categories:
Scheduled Maintenance and
Streetlight Repairs
Electric Charges for
Streetlights (approx. 526 – per
PG&E data)
Street Lighting Residential (4.88%) Industrial (3%)
Beginning Fund Balance: $ 243,306 $ 158,614
Assessment Revenues 147,280 66,102
Assessment Expenses (144,298) (78,428)
General Benefit Contribution (GF) 9,700 13,700
Ending Fund Balance: $ 255,988 $ 159,988
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 $310.75 – max assessment of $310.75).
8 Mossdale Landscape and Lighting
Beginning Fund Balance: $ 280,543
Assessment Revenues 697,614
Assessment Expenses (788,030)
Ending Fund Balance: $ 190,127
Major Expense Categories:
Contracted Landscaping
Services
Water & Electric Charges for
Streetlights (approx. 823 – per
PG&E data)
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: $ 73,729
Assessment Revenues 239,140
Assessment Expenses (410,567)
General Benefit Contribution (GF) 97,700
Ending Fund Balance: $ 2
Major Expense Categories:
Personnel
Communication Equipment
Contracted Services
For FY 23/24, General Fund contribution of $97,700 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: $ 95,964
Assessment Revenues 113,362
Assessment Expenses (158,159)
General Benefit Contribution (GF) 50,000
Ending Fund Balance: $ 101,167
Major Expense
Categories:
Personnel
Maintenance and
Repairs
Communication
Equipment
Water & Electric
Charges
For FY 23/24, General Fund contribution of $50,000 is needed.
NEXT STEPS
City Council’s Action:
• Hold a Public Hearing;
• Approve Fiscal Year 2023/24 Assessment of Maintenance Districts 11 District FY 22/23 Rates
FY 23/24
Proposed Rates Change Notes
Street Lighting - Industrial $ 8.34 to $ 42.52 $ 8.59 to $ 43.79 $0.25 to $1.27 3% max escalator Street Lighting - Residential $ 8.62 to $ 65.54 $ 9.04 to $ 68.74 $0.42 to $3.20 4.88% CPI escalator Mossdale Landscaping and Lighting $ 301.70 $ 310.75 $ 9.05 Max assessment of $310.75 (3%) Storm Drain Zone 1 $ 112.52 $ 112.52 $ 0 Rate unchanged since FY 1996/97 Storm 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 2023/24.
• Once approved, the assessment information will be submitted to the County Auditor-Controller’s Office for levy.