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SUMMARY:
Placentia City Council
AGENDA REPORT
CITY1COUNCIL
CITY ADMINISTRATOR
DEPUTY CITY ADMINISTRATOR/ PUBLIC SERVICES AND INFRASTRUCTURE JUNE 7, 2022
PUBLIC HEARING TO PROVIDE FOR THE ANNUAL LEVY OF ASSESSMENT FOR THE CITY OF PLACENTIA STREET LIGHTING DISTRICT 81-1 REVENUE: $135,286
$ 36,214
EXPENDITURES: $171,500
(SLD -81-1 ASSESSMENTS)
(TRANSFER IN FROM GENERAL FUND)
(PROPOSED FY 22-23 BUDGET SLD 81-1
FUND)
The City of Placentia administers Street Lighting District ("SLD") ("District") 81-1. Property owners in the District pay an assessment on their property tax bill for the maintenance of 814 streetlights within the district. Each year, the City Council must order the preparation of an Engineer's Report which determines the amount of the assessment to be levied and reconfirms the boundaries and composition of the district. Based upon the Engineer's Report, the rate for Fiscal Year ("FY") 2022- 23 for SLD 81-1 will remain the same at $27.38 per parcel which is the maximum allowed by law for this District without a new vote of the property owners to approve a rate increase. This action recommends that the City Council conduct a public hearing to receive testimony, and upon conclusion of the public hearing, adopt a resolution approving the Engineer's Report and setting the annual levy of assessment for FY 2022-23.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Open the Public Hearing concerning the levy and collection of assessments within the Placentia Street Lighting District 81-1; and
2. Receive the Staff Report, consider all public testimony, ask questions of Staff; and
3. Close the Public Hearing; and
2.13. June 7, 2022
City Council Agenda
June 7, 2022
4. Adopt Resolution No. R-2022-36, a Resolution of City Council of the City of Placentia, California, approving Engineer's Report, confirming diagram and assessment, and ordering levy of continued assessments for Fiscal Year 2022-23 for Placentia Street Lighting District No. 81-1.
DISCUSSION:
The Placentia SLD 81-1 ("District") was formed on June 2, 1981 by Resolution No. 81-R-133 of the City Council. The District incorporated the formerly City -run Santa Fe Street Lighting District as well as new areas of development in the City. The County of Orange ("County") operated street light assessment districts in Placentia prior to this action by the City Council. The Orange County Street Light Assessment Districts ("OCSLAD") were formed by ad valorem tax rate areas and new developments were annexed into the OCSLAD with the consent of the City Council. The formation of SLD 81-1 was driven by the County taking a position to not annex new territory into the OCSLAD from that point of time forward and to transfer the responsibility of managing these Districts to Cities instead. Accordingly, all areas awaiting annexation and any new development in Placentia after that time were to be part of the City's newly formed District. Upon formation of SLD 81-1, no further territory was annexed into the County's street lighting assessment district.
Since that time, the District has absorbed 814 new streetlights installed throughout the City as it continued to develop and annex new properties in the 1980's and 90's.
SLD No. 81-1 is divided into five (5) assessment zones. Zone A is made up of 3,715 residential parcels. Zone B consists of 315.859 acres of commercial and industrial land. Zone C, which includes parcels from the former Santa Fe Lighting District No. 1, no longer exists and has been folded into Zone B. Zone D includes 100 parcels that have a recorded tentative or final map but are not yet developed. Lastly, Zone E includes open space, streets, or landscaped parcels and is exempt from the assessment. The assessment rate charged varies by zone. Zone A properties pay $27.38 per parcel per year. Zone B pays $164.28 per acre and Zone C properties pay a rate of $8.21 per unit. The assessments are currently at the maximum allowable rate without a vote of property owners as required by Proposition 218.
Public Hearing Process
The Landscaping and Lighting Act of 1972 (Streets and Highways Code §§ 22500-22647) does require that the City undertake certain proceedings for any fiscal year during which assessments are to be levied and collected upon private property. Each fiscal year, the City Council directs the preparation of an Engineer's Report, budgets and proposed assessments before the assessments can be levied. The Engineer's Report establishes the foundation and justification for the continued collection of the assessments for FY 2022-23. These proceedings are usually accomplished at two (2) separate City Council meetings. On May 17, 2022, the City Council adopted a resolution declaring its intention to provide for the Annual Levy of Assessments for SLD 81-1 and setting the time and date for a public hearing.
The Annual Levy of Assessments is for the purpose of providing district funds for street Tight maintenance and electricity costs and a means of assessment for the same purposes as shown in the attachments. Documents to provide for the annual levy have been prepared by the assessment engineer contracted by the City and herewith presented for City Council approval as follows:
City Council Agenda
June 7, 2022
1. Resolution confirming a Diagram and Assessment, providing for Annual Assessment Levy (Attachment 1)
2. Engineer's Report and Assessment Diagram (Attachment 2)
3. Assessment Roll (On File with the City Clerk)
SLD No. 81-1 is exempt from, and not subject to the procedures and approval processes set forth in Article XIII D, Section 4 of the California Constitution enacted by Proposition 218 on November 5, 1996. The reason SLD No. 81-1 is not subject to Proposition 218 can be attributed to the fact that Proposition 218 also enacted Article XIII D, Sections 5 and 5(b) which exempted assessment districts formed prior to November 6, 1996, and which were formed pursuant to a petition signed by those owning all the parcels subject to the assessment at the time the assessment was initially imposed. This exemption is contingent on there being no increase in the amount assessed on a property owner in a category from the prior year. Since SLD No. 81-1 was formed prior to November 6, 1996, pursuant to a petition signed by those owning all the parcels subject to the assessment at the time the assessment was initially imposed, the District is exempt from the procedures and approval process set forth by Proposition 218.
Staff recommends that the City Council conduct the public hearing and adopt the attached resolution. Although verbal testimony may be taken, protests must be submitted in writing and filed with the City Clerk. No written protests have been filed as of June 2, 2022. The City Clerk will provide the City Council with copies of any written protests received subsequently.
FISCAL IMPACT:
The proposed Assessment Units ("AU") for FY 2022-23, have not increased. The assessments are currently at the maximum allowable rate without a vote of property owners as required by Proposition 218. The estimated revenue from assessments is $135,286. Expenditures are estimated to be $171,500. The largest cost center is for electric utility costs which totals $160,000.
This leaves a funding deficit of $36,214 which will be subsidized by the General Fund. SLD 81-1 has operated at a deficit for numerous years due to the City's limited ability to increase assessment rates to relieve the annual General Fund contribution to the District.
Prepared by:
sa Y. Robinson
Management Analyst
Reviewed and approved:
>I\
Jennifer L m man
Director o finance
City Council Agenda
June 7, 2022
Reviewed and aparoved: Reviewed and approved:
Luis Estevez
Deputy City Administrator
City Administrator
Attachments:
1. Resolution No. 2022-36 — Engineer's Report and Assessment for SLD 81-1
2. SLD 81-1 Engineer's Report & Assessment Diagram
3. Assessment Roll (on file with City Clerk)