Placentia City Council
AGENDA REPORT
TO: CITY COUNCIL
VIA: CITY ADMINISTRATOR
FROM: DEPUTY CITY ADMINISTRATOR / PUBLIC SERVICES & INFRASTRUCTURE DATE: MAY 2, 2023
SUBJECT: RESOLUTION RELATING TO FISCAL YEAR 2023-24 LEVY OF ASSESSMENTS
TO THE CITY OF PLACENTIA LANDSCAPE MAINTENANCE DISTRICT NO. 92-1 AND SETTING A PUBLIC HEARING FOR JUNE 6, 2023 AT 7:00 P.M.
FISCAL
IMPACT: REVENUE: $ 450,858 (RECOUPED THROUGH ASSESSMENTS) EXPENDITURES: $ 419,200 (PROPOSED FY 2023-24 BUDGET LMD 92- 1 FUND)
SUMMARY:
Each year the City must conduct a public hearing to provide for the Levy of Assessments for the City of Placentia Landscape Maintenance District ("LMD") No. 92-1, prepare a final Engineer's Report, and provide for any annexations into the District as proposed. This action will adopt resolutions necessary to set forth a public hearing for June 6, 2023 to provide for the Fiscal Year ("FY") 2023-24 Annual Levy of Assessments for LMD No. 92-1 as well as finalize the annual Engineer's Report.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Adopt Resolution R-2023-25, a Resolution of the City Council of the City of Placentia, California, directing preparation of the Engineer's Report for Fiscal Year 2023-24 for the continuation of the annual assessments for Landscape Maintenance District No. 92-1; and
2. Adopt Resolution R-2023-26, a Resolution of the City Council of the City of Placentia, California, declaring its intention to provide for the annual levy and collection of assessments for certain maintenance within an existing district, pursuant to the provisions of Division 15, Part 2, of the California Streets and Highways Code and setting a time and place for public hearing thereon.
1.C.
May 2, 2023
City Council Agenda
May 2, 2023
STRATEGIC PLANNING STATEMENT:
There is no specific strategic planning goal or objective associated with this agenda item.
DISCUSSION:
LMD No. 92-1 (the "District") assesses various parcels located within the District a flat amount each year to provide funding to maintain various perimeter and median landscapes, as well as other improvements (e.g., entrance signs, parkway vistas). The current maximum assessment rate per assessment unit for single family residential parcels is $154.87 per year. This rate cannot be increased without the approval of the property owners within the District.
The District was established pursuant to the provisions of the "Landscaping and Lighting Act of 1972," Division 15 of the Streets and Highway Code. The annual levy of assessments is for providing landscape maintenance of specific improvements in those areas within the Boundary Map of the District and outlined in the preliminary Engineer's Report, which is on file in the offices of the City Engineer and City Clerk. A final annual Engineer's Report will be prepared and presented to the City Council for its consideration as required by law.
The legal authority for setting the assessments in LMD No. 92-1 is set forth in the Landscape and Lighting Act of 1972 which is found in Streets and Highways Code Section 22500, et seq., and pertinent provisions of the California Government Code. The District 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. That is due to the fact that Proposition 218 also enacted Article XIII D, Sections 5 and 5(b) which exempts 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, provided there is no increase in the amount assessed on a property owner in a particular category from the prior year.
In Placentia, LMD No. 92-1 was formed prior to November 6, 1996, and pursuant to a petition signed by those owning all the parcels, subject to the assessment at the time the assessment was initially imposed. In addition, there is no increase in the amount assessed on a property owner in a category of assessment unit for FY 2023-24 as compared to FY 2022-23. Therefore, the District is exempt from the procedures and approval processes of Proposition 218 for FY 2023-24.
Two (2) resolutions have been prepared for City Council consideration. The first resolution (Attachment 1) orders the preparation of an Engineer's Report to include the plans, specifications, cost estimate, and diagram of the landscape improvements. The second resolution (Attachment 2) declares the Council's intention to provide for the annual levy and collection of assessments, as well as establishes June 6, 2023 as the public hearing date.
City Council Agenda
May 2, 2023
FISCAL IMPACT:
For FY 2023-24, LMD No. 92-1 has estimated current expenditures of $419,200 and projected revenues of $450,558. This provides a balance of $31,668 allocated as an LMD reserve cushion for next fiscal year. Staff is currently evaluating various options that the City Council could consider to restructure the LMD fund to ensure the financial sustainability of the fund over the long term.
Staff will present the City Council with potential options to evaluate as part of a future study session in FY 2023-24 for consideration for FY 2023-24. Funding for the Engineer's Report has been appropriated in the adopted FY 2022-23 Budget. There is no impact to the General Fund associated with these recommended actions.
Prepared by:
El a Robi and
Senior Management Analyst
Reviewe! and approved:
Luis Estevez
Deputy City Administrator
Reviewed and approved:
Jennifer Lampman
Director of Finance
Reviewed and approved:
Damien RTArrula
City Administrator
Attachments:
1. Resolution R-2023-25, Directing Preparation of the Final Engineer's Report
2. Resolution R-2023-26, Setting a Public Hearing
3. Preliminary Engineer's Report — Placentia LMD 92-1 Fiscal Year 2023-24