Agenda Item
City Council
Item #: 3.20. 4/25/2023 File #: 23-0260
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director
1. SUBJECT
Approval of the Landscape Maintenance Districts 86-2 (Santiago Hills) and 15-1 (Santiago Hills Overlay) Preliminary Engineer’s Report for Fiscal Year 2023-2024. Resolution No. 11449.
2. SUMMARY
The City declares its intention to assess an annual levy, approve the Preliminary Engineer’sReport and set a public hearing. The total assessments to be levied from Landscape Maintenance Assessment Districts 86-2 (Santiago Hills) and Landscape Maintenance Assessment District 15-1 (Santiago Hills Overlay) for Fiscal Year 2023-2024 are $533,651 and $367,579, respectively.
Assessment for the Santiago Hills Overlay includes staff recommendation of an annual adjustment of 3% based on the Consumer Price Index for the Los Angeles-Long Beach-Anaheim area.
3. RECOMMENDED ACTION
1. Adopt Resolution No. 11449. A Resolution of the City Council of the City of Orange regarding Landscape Maintenance Assessment Districts 86-2 (Santiago Hills), and 15-1 (Santiago Hills Overlay) declaring its intention to provide for an annual levy and collection of assessments for Fiscal Year 2023-2024; setting a time and place for a public hearing to receive public testimony on the foregoing matters; and giving preliminary approval of the certified Engineer’s Report for Landscape Maintenance Assessment Districts 86-2 (Santiago Hills) and 15-1 (Santiago Hills Overlay).
2. Declare the intent to levy an annual assessment, and set June 13, 2023, at 6:00 PM at City Hall, 300 E Chapman Avenue, Orange, CA 92866, as the time and place for the Public Hearing on the assessments.
4. FISCAL IMPACT
The total expenditure for this assessment is $922,793 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.
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Item #: 3.20. 4/25/2023 File #: 23-0260
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 owners.
This year’sassessment for a single family detached unit is $369.44 and $221.66 for condos. 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 sustain standard landscape maintenance and continue capital improvement projects. The annual assessment for LMD 15-1 was approved by the property owners on June 9, 2015.
The proposed Fiscal Year 2023-2024 (FY24) 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. Community Services Department staff recommended assessing the CPI adjustment which for FY24 is 3%, to continue capital renovations of the aging landscape. The assessment for 15-1 for a single family detached unit will increase by $7.67 from $255.60 to $263.27. The assessment for 15-1 condominiums will increase by $5.44 from $181.48 to $186.92.
The maximum assessment total for LMD 86-2 for FY24 is $533,651. The assessment total for LMD 15-1 for FY24 is $367,579 including the 3.0% CPI adjustment. Revenues of $25,106 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 $926,336 in revenue. Expenditures in FY24 are anticipated to be approximately $922,793 which is $3,543 less than revenues. The City continues to actively work with District residents on implementing a renovation plan for their 30 year old landscape that is both fiscally and environmentally sustainable. The projected year-end reserve fund balance is $717,598. Reserve funds will be used to supplement any potential deficit in FY24 expenditures.
The attached Preliminary Engineer’sReports contains detailed information about the assessment. It is proposed to schedule the Public Hearing on June 13, 2023, at City Hall, 300 E Chapman Avenue, Orange, CA 92866, as the time and place for the Public Hearing on the assessments.
7. ATTACHMENTS
· Resolution No. 11449
· Preliminary Engineer’s Report for the Annual Levy Assessment Landscape Maintenance District No. 86-2 Fiscal Year 2023-2024
· Preliminary Engineer’s Report for the Annual Levy Assessment Landscape City of Orange Printed on 4/20/2023Page 2 of 3
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Item #: 3.20. 4/25/2023 File #: 23-0260
· Preliminary Engineer’s Report for the Annual Levy Assessment Landscape Maintenance District No. 15-1 Fiscal Year 2023-2024
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