Placentia City Council
TO: CITY COUNCIL
VIA: CITY ADMINISTRATOR
FROM: ACTING DIRECTOR OF PUBLIC WORKS
DATE: MAY 21, 2024
AGENDA REPORT
SUBJECT: RESOLUTION RELATING TO FISCAL YEAR 2024-25 LEVY OF ASSESSMENTS TO THE CITY OF PLACENTIA STREET LIGHTING DISTRICT NO. 81-1 AND SETTING A PUBLIC HEARING FOR JUNE 18, 2024 AT 7:00 P.M.
FISCAL
IMPACT: REVENUE: $136,244 (SLD -81-1 ASSESSMENTS)
$143,756 (PROPOSED TRANSFER IN FROM GENERAL
FUND)
EXPENDITURES: $280,000 (PROPOSED FY 24-25 BUDGET SLD 81-1 FUND)
SUMMARY:
Each year the City must conduct a public hearing to provide for the Levy of Assessments for the City of Placentia Street Lighting District ("SLD") No. 81-1 (the "District"), 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 18, 2024, to provide for the Fiscal Year ("FY") 2024-25 Annual Levy of Assessments for SLD No. 81-1 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-2024-27 a Resolution of the City Council of the City of Placentia, California, directing preparation of the Engineer's Report for Fiscal Year 2024-25 for the continuation of the annual assessments for Street Lighting District No. 81-1; and
2. Adopt Resolution R-2024-28, a Resolution of the City Council of the City of Placentia, California, declaring its intention to provide for an 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.h.
May 21, 2024
City Council Agenda
May 21, 2024
STRATEGIC PLANNING STATEMENT:
There is no specific strategic planning goal or objective associated with this agenda item.
DISCUSSION:
The City Council adopted Resolution No. 81-R-133 on June 2, 1981, establishing SLD No. 81-1 pursuant to provisions of the Landscaping and Lighting Act of 1972, Division 15 of the Streets and Highway Code. SLD 81-1 was created to generate revenue to pay for the electric utility costs for 814 streetlights located along arterial streets throughout the City. SLD No. 81-1 is divided into five (5) assessment zones. Zone A is made up of 3,281 residential parcels. Zone B consists of 269.712 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 65 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 legal authority for setting the assessments in SLD No. 81-1 is set forth in the Landscape and Lighting Act of 1972 found in Streets and Highways Code Section 22500, et seq., and pertinent provisions of the California Government Code. The annual levy is for providing street lighting and means of assessment for maintenance of same in those existing and newly developing properties designated on the Boundary Map of the District, which is on file in the offices of the City Engineer and 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.
FISCAL IMPACT:
SLD No. 81-1 has estimated expenditures of $280,000 for FY 2024-25. The largest cost center is for electric utility costs which total $279,000. The proposed assessment for FY 2024-25 will generate approximately $136,244 in revenue leaving a negative balance of $143,756, which is backfilled by the City's General Fund. SLD 81-1 has operated at a deficit for numerous years because of the limited ability to increase assessment rates to relieve the annual General Fund contribution to the District.
City Council Agenda
May 21, 2024
Prepared by:
Elsa Y. Robinson
Senior Management Analyst
Reviewed and approved:
Jennifer Lampman
Director of Finance
Reviewed and approved:
Chris Tanio, PE
Acting Director of Public Works
Reviewed and approved:
Damien R. Arrula
City Administrator
Attachments:
1. Resolution R-2024-27, Directing Preparation of the Final Engineer's Report
2. Resolution R-2024-28, Setting a Public Hearing
3. Preliminary Engineer's Report— Placentia SLD 81-1 FY 2024-25