CITY OF POMONA
COUNCIL REPORT
July 18, 2022
To: Honorable Mayor and Members of the City Council
From: James Makshanoff, City Manager
Submitted By: Rene Guerrero, Public Works Director
SUBJECT: PUBLIC HEARING REGARDING THE LEVY OF FISCAL YEAR 2022-23 ASSESSMENTS FOR THE CONSOLIDATED CITYWIDE STREET LIGHTING AND LANDSCAPING MAINTENANCE DISTRICT RECOMMENDATION:
It is recommended that the City Council take the following actions:
Conduct a Public Hearing regarding the levy of assessments for the Consolidated Citywide Street Lighting and Landscaping Maintenance District for FY 2022-23; and After receiving public comments and testimony, conclude the Public Hearing and adopt the following Resolution:
RESOLUTION NO. 2022-111 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, CONFIRMING THE ASSESSMENT DISTRICT DIAGRAMS, ZONE BOUNDARIES, AND THE LEVY OF FISCAL YEAR 2022-23 ASSESSMENTS FOR THE CONSOLIDATED CITYWIDE STREET LIGHTING AND LANDSCAPING MAINTENANCE DISTRICT EXECUTIVE SUMMARY: A public hearing is required prior to City Council adopting the Resolution (Attachment No. 1) to confirm the assessment diagrams, zone boundaries, and the assessments to be levied for FY 2022-23. Prior to conducting the public hearing, notification of the hearing (Attachment No. 2) is required and affected property owners have the opportunity to comment orally or in writing regarding the Engineer’s Report (Attachment No. 3) and the assessments. At the time this report was submitted, the City Clerk had received no protest letters. Any subsequent protest letters, if any, will be presented to the City Council at the Public Hearing on July 18, 2022.
FISCAL IMPACT: Funding for the Consolidated Citywide Street Lighting and Landscaping Maintenance District (District) is derived from assessments to properties receiving benefits from the District. In the proposed budget, adopted prior to the draft Engineer’s Report, the City conservatively estimated that the assessments would generate approximately $1,235,441 for FY 2022-23. The Engineer’s Report estimates a total levy of $1,268,071 from the 7,688 parcels levied, plus additional annual revenue of $922.20 in Zone C from the 60 parcels being added to the Citywide lighting assessment through this process. The table below summarizes estimated revenues from the assessments as described in the Engineer’s Report:
Source of Funds
Phillips Ranch Zone A-B
Zones C and I
Total Zones D-F
University Corp. Center Zone H
Total
Assessment Revenue
$951,944
$138,819
$114,470
$62,838
$1,268,071
Notes
Since FY 1999-00, all parcels formerly in Zone G have now been included in Zone C.
The table below summarizes the estimated expenditures from the assessments. Where expenditures exceed revenues, fund balances will cover the shortfalls. Appropriations for these are included in the FY 2022-23 Proposed Operating Budget. It should be noted that in the Phillips Ranch Zone A-B, the fund balance is expected to be depleted in FY 2022-23. The City has hired a consultant to begin the process of a Proposition 218 protest hearing to increase the assessment in Phillips Ranch to a sustainable level so that services do not have to be decreased further, and the General Fund or other funding sources do not have to make up the shortfall. A vote to increase the assessment is expected to take place in Spring 2023.
Uses of Funds
Phillips Ranch Zone A-B
Zones C and I
South Garey Zones D-F
University Corp. Center Zone H
Total
Personnel Costs
$172,662
$36,512
$29,764
$37,560
$276,498
Contractual Services
$699,316
$2,000
$25,708
$37,632
$764,656
Utilities
$424,712
$80,000
$46,785
$25,760
$577,257
Internal Services
$26,493
$555
$555
$694
$28,297
Other Operating Costs
$39,165
$10,550
$880
$5,300
$55,895
Total
$1,362,348
$129,617
$103,692
$106,946
$1,702,603
In Phillips Ranch Zone A-B, the City’s General Fund funds $51,504 annually to maintain the parks in this District.
PUBLIC NOTICE REQUIREMENTS: In accordance with California Streets and Highways Code Sections 22552, 22553, and 22626(a) and Government Code Section 6061, the Resolution of Intent to conduct the public hearing regarding the FY 2022-23 levy of assessments was published in the Inland Valley Daily Bulletin on July 8, 2022.
PREVIOUS RELATED ACTION: On June 6, 2022, the City Council approved the Engineer’s Report for the Consolidated Citywide Street Lighting and Landscaping Maintenance District, and adopted Resolution No. 2022-101 declaring the City’s intent to levy assessments for FY 2022-23 and set a Public Hearing on the matter for July 18, 2022.
On April 18, 2022, the City Council adopted Resolution No. 2022-63, authorizing David Taussig and Associates, Inc. (DTA) as the Engineer of Record for Fiscal Year 2022-23, and authorizing the preparation of the Engineer’s Report pursuant to the Provisions of Division 15, Part 2 of the Streets and Highways Code of the State of California, for the Annual Assessment Levy for the Consolidated Citywide Street Lighting and Landscaping Maintenance District for FY 2022-23.
DISCUSSION: The Engineer’s Report, which includes the respective proposed 2022-23 Assessment Roll data, is on file with the City Clerk for public review. The assessment estimates by Zone are reflected in the table above and are also set forth in the attached Engineer’s Report. In no case is the assessment rate higher than the previous year. However, parcels may have been added as a result of development. The established and fixed assessment rate formula varies by Zone within the District, depending on the types and levels of services received. There are no proposed increases to the assessment formulas within the District. Therefore, there are no Proposition 218 requirements to be met for the current action.
Due to rising costs that exceed available revenues, we may need to consider an assessment increase in the near future for certain portions of the District to maintain the current level of maintenance. Adoption of the proposed Resolution will confirm the Assessment District Diagrams, including Zone Boundaries, and the list of assessments to be levied by the County Assessor for FY 2022-23. This action is necessary to meet the deadline set by the Los Angeles County Auditor-Controller for inclusion on the FY 2022-23 Assessment Roll.
ATTACHMENTS:
Attachment No. 1 – Resolution No. 2022-111 confirming the Assessment District Diagrams, Zone Boundaries, and the Levy of fiscal year 2022-23 Assessments for the Consolidated Citywide Street Lighting and Landscaping Maintenance District.
Attachment No. 2 – Notice of Public Hearing
Attachment No. 3 – Engineer’s Report for Fiscal Year 2022-23 Prepared by:
_____________________________
Maritza Sosa-Nieves
Senior Management Analyst
Public Hearing Regarding the Levy of Fiscal Year 2022-23 Assessments for the Consolidated Citywide Street Lighting and Landscaping Maintenance District