Agenda Item
City Council
Item #: 10.3. 6/14/2022 File #: 22-0275
TO: Honorable Mayor and Members of the City Council
THRU: Rob Houston, City Manager
FROM: Christopher Cash, Public Works Director
1. SUBJECT
Public Hearing to consider approval of the Landscape Maintenance Assessment Districts 86-2 (Santiago Hills), and 15-1 (Santiago Hills Overlay) Final Engineer’sReports for Fiscal Year 2022- 2023. Resolution No. 11394.
2. SUMMARY
Resolution 11394 is the second step and will complete the process of the annual assessment for Landscape Maintenance Assessment Districts 86-2 (Santiago Hills) and 15-1 (Santiago Hills Overlay). The total assessments to be levied from 86-2 and 15-1 for Fiscal Year 2022-2023 are $533,651 and $356,873, respectively. The assessment per unit for 86-2 will remain at $369.44 for a single family detached unit and $221.66 for a condominium. For 15-1, staff recommends a 3.0% CPI adjustment, the maximum allowed, which slightly increases per unit assessment from $248.16 to $255.60 for a single family detached unit and from $176.19 to $181.48 for condominiums.
3. RECOMMENDED ACTION
1. Adopt Resolution No. 11394. A Resolution of the City Council of the City of Orange approving the Engineer’s Reports and providing for the annual assessment for Landscape Maintenance Districts 86-2 (Santiago Hills) and 15-1 (Santiago Hills Overlay).
2. Establish the assessment per single family detached unit per year for Fiscal Year 2022-2023 for Landscape Maintenance Districts 86-2 (Santiago Hills) and 15-1 (Santiago Hills Overlay) at $369.44 and $255.60, respectively and $221.66 and $181.48 respectively for condominiums.
4. FISCAL IMPACT
The total expenditure for this assessment is $917,642 and will be funded through Santiago Hills and Santiago Hills Overlay Landscape Maintenance Districts (291).
5. STRATEGIC PLAN GOALS
Goal 3: Enhance and promote quality of life in the community a: Renovate, maintain, develop and/or expand public use places and spaces.
6. DISCUSSION AND BACKGROUND
In 1987, Landscape Maintenance District 86-2 (LMD 86-2) was established to maintain the landscape improvements constructed by Assessment District 86-1 in Santiago Hills. Annually, a detailed accounting of expenses is compiled and a new assessment is calculated for the benefitting property City of Orange Printed on 6/9/2022Page 1 of 3
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Item #: 10.3. 6/14/2022 File #: 22-0275
owners.
This year’s assessment for a single family detached unit is $369.44. The assessment for a condominium is $221.66. This is the same as last year and the largest assessment currently allowed.
Revenue in the District is derived from assessments paid by property owners, both residential and commercial, as well as Rancho Santiago Community College District who reimburses the District for the cost to maintain the parkways adjacent to the school.
On April 14, 2015, the City Council approved the formation of a new district (LMD 15-1) to exactly overlay the existing LMD 86-2 and to provide additional funding necessary to serve the District. The annual assessment for LMD 15-1 was approved by the property owners on June 9, 2015.
The proposed Fiscal Year 2022-2023 (FY23) budget for the combined LMD 86-2 and LMD 15-1 indicates the amount of funding required to maintain District landscape and provides a capital budget to replace aging landscaping and infrastructure over time. Additional revenues to fully fund the District would be obtained through the overlay district, LMD 15-1, and a separate agreement with Rancho Santiago Community College District. The existing LMD 86-2 will stay at the maximum assessment; however, the assessment for LMD 15-1 will include a 3.0% Consumer Price Index (CPI) increase. The Assessment for LMD 15-1 is permitted to increase annually consistent with CPI increases for the Los Angeles-Long Beach- Anaheim area, with a maximum of 3.0%. Community Services Department staff recommended assessing the CPI adjustment, which is 6.6%. For FY23 the maximum 3.0% will be used, to continue capital renovations of the aging landscape. The assessment for 15-1 for a single family detached unit will slightly increase by $7.44 from $248.16 to $255.60. The assessment for 15-1 condominiums will increase by $5.29 from $176.19 to $181.48.
The maximum assessment total for LMD 86-2 for FY23 is $533,651. The assessment total for LMD 15-1 for FY23 is $356,873 including the 3.0% CPI adjustment. Revenues of $30,191 from Rancho Santiago Community College District are included as a reimbursement for landscape maintenance costs paid by LMD 86-2 and LMD 15-1. This totals $920,715 in revenue. Expenditures in FY23 are anticipated to be approximately $917,642 which is $3,073 under revenues. Excess funds will be used to supplement the reserve fund balance. The City continues to actively work with District residents on developing a renovation plan for their 30 year old landscape that is both fiscally and environmentally sustainable. The projected year-end reserve fund balance is $375,279.
The attached Final Engineer’s Report contains detailed information about the assessment.
Each year, the process for setting the assessment of the Landscape Maintenance Districts is initiated. The process began on May 10, 2022 with the City Council Approval of Resolution No. 11390 which approved the Preliminary Engineer’sReports for LMD 86-2 and 15-1, and set June 14, 2022 as the date for the public hearing. This public hearing is the second step in the process and is held in accordance with the Lighting and Landscape Maintenance Act of 1972 as outlined in the “Order of Procedure”. At this time, property owners will have an opportunity to be heard on this issue.
7. ATTACHMENTS
· Resolution No. 11394 - Landscape Maintenance Assessment District 86-2 (Santiago Hills) and 15-1 (Santiago Hills Overlay)
· Final Engineer’s Report for the Annual Levy - Assessment Landscape Maintenance District No. 86-2 - Fiscal Year 2022-2023
· Final Engineer’s Report for the Annual Levy - Assessment Landscape Maintenance City of Orange Printed on 6/9/2022Page 2 of 3
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Item #: 10.3. 6/14/2022 File #: 22-0275
District No. 15-1 - Fiscal Year 2022-2023
City of Orange Printed on 6/9/2022Page 3 of 3
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