CITY OF POMONA
COUNCIL REPORT
March 20, 2023
To: Honorable Mayor and Members of the City Council
From: James Makshanoff, City Manager
Submitted By: Rene Guerrero, Public Works Director
SUBJECT: CITY VOTE REGARDING THE FORMATION OF THE PHILLIPS RANCH LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to cast ballots and vote “yes” on behalf of the City of Pomona for the proposed formation of the Phillips Ranch Landscaping and Lighting Maintenance Assessment District and corresponding assessment increase for all City-owned parcels currently located within the existing Consolidated Citywide Street Lighting and Landscaping Maintenance District Zones A and B.
EXECUTIVE SUMMARY:
The City of Pomona (City) owns six assessed properties within the existing Consolidated Citywide Street Lighting and Landscaping Maintenance District Zones A and B (Existing District). Staff is recommending that City Council authorize the City Manager to vote “yes” on the ballots (Attachment No. 1) for each property to reorganize the territory currently known as the “A and B zone” within the Existing District into its own separate assessment district proposed to be called the “Phillips Ranch Landscaping and Lighting Maintenance Assessment District.” The City Manager has the authority to cast ballots on behalf of the City.
FISCAL IMPACT:
The fiscal impact will be dependent upon the outcome of the “majority protest” proceeding, to be voted on by property owners in the Phillips Ranch area to increase the annual assessment from $277.81 to $511.58 by the close of the public hearing on April 3, 2023. Should the assessment increase to $511.58, the amount the City will be assessed will increase from $1,666.86 to $3,069.48 annually for the six properties in total that are owned by the City and assessed in this District. Additional funding from the increased assessment will help sustain the necessary landscaping and lighting maintenance in this District.
PREVIOUS RELATED ACTION:
On February 6, 2023, the City Council passed a resolution declaring its intent to form the new “Phillips Ranch Landscaping and Lighting Maintenance Assessment District,” ordering the mailing of the ballots, approving the draft Engineer’s Report for the Phillips Ranch Landscaping and Lighting Maintenance Assessment District, and setting a public hearing date for April 3, 2023 to discuss the matter and receive the final ballots.
DISCUSSION:
The City has been aware of a severe budget deficit in the Phillips Ranch Landscape Maintenance District (District) for several years. The District’s budget provides for landscape maintenance and lighting services managed by the City and paid for by an assessment that the Phillips Ranch property owners pay annually per the original Development Agreement. This annual assessment has remained at a fixed level since 1993, and has not seen any substantial increase to match the ever-increasing costs of providing landscape and lighting maintenance services. In 2008, an assessment increase to a sustainable level was proposed per Proposition 218 requirements. However, that ballot measure was voted down. In 2019, the City once again went through the Proposition 218 process to increase the assessment, which, if approved, would have increased the assessment by $17 per month and include annual consumer price index (CPI) increases that would have been capped at five percent. This, too, did not pass. The City is faced with an almost total depletion of the reserves and a $410,000 deficit in this fund. As such, the City recently had to make substantial cuts in FY 2022-23 to landscape maintenance, tree maintenance, and watering.
After the failed attempt to increase the assessment in 2019, a Phillips Ranch Oversight Committee (Committee) was formed to help the City prioritize health and safety needs with the limited funding provided by the current assessment. The Committee is comprised of seven residents from Phillips Ranch appointed by the City Council. The work of the Committee has resulted in a recommendation to increase the annual assessment for the District. Any changes to the assessment amounts is subject to a Prop. 218-majority protest proceeding for the property owners within the Phillips Ranch Assessment District.
To assist the Committee in developing financial and service level alternatives, the City hired NBS Government Finance Group. NBS has prepared the Engineer’s Report for the Phillips Ranch Landscaping and Lighting Assessment District, which describes the proposed boundaries of the new District along with proposed assessments to property based on special benefit. NBS worked with the City Attorney to ensure the report meets local, state, and federal regulations, including compliance with Prop 218 and appropriate assessment district regulations.
Prop 218 requires that the City mail a minimum 45-day notice of a public “majority protest” hearing to all property owners within the District subject to the assessment, which outlines the proposed District and assessment, and includes a written ballot for the property owner to cast either in support or against the proposed District and assessment. NBS handled the noticing and ballot process.
The City owns six assessed parcels within the Existing District. As such, the City is a stakeholder and has the same opportunity to cast its vote as any other property owner for each parcel it owns. Should the current assessment of $277.81 not increase to $511.58, maintenance levels in Phillips Ranch will decrease to the levels that can be sustained by the limited budget. Council is being asked to direct the City Manager to vote “yes” on the proposed ballot measure and to cast ballots on behalf of the City for the six parcels.
The Council is scheduled to hold a public hearing on April 3, 2023. At the close of the Public Hearing, assessment ballots will be tabulated. If there is no “majority protest,” the Council may establish the proposed District and approve the proposed assessment. NBS will submit the appropriate materials to Los Angeles County by the FY 2023-24 property assessment deadline.
On April 17, 2023, there will be a final City Council meeting to confirm the results and take final action. If there is a “majority protest,” the new District cannot be formed. If not, the Council may order the new District be established, and the new assessment be levied. The new District will supersede the current Zone A and B assessment in the Citywide District.
ALTERNATIVES:
The City Council has the following alternatives:
Authorize the City Manager to vote “yes” and cast ballots on behalf of the City for the proposed formation of the Phillips Ranch Landscaping and Lighting Maintenance Assessment District and corresponding increase to the assessment for all of the City-owned parcels currently located within the Existing District. The result of the votes will be tabulated along with the votes of other property owners in the District after the close of the Public Hearing on April 3, 2023.
Authorize the City Manager to vote “no” and cast ballots on behalf of the City for the proposed formation of the Phillips Ranch Landscaping and Lighting Maintenance Assessment District and corresponding increase to the assessment for all of the City-owned parcels currently located within the Existing District. The result of the votes will be tabulated along with the votes of other property owners in the District after the close of the Public Hearing on April 3, 2023.
Choose to abstain and not indicate a particular preference on the ballots in order to permit the entire outcome to be driven by other property owners.
Prepared by:
Shandy Dittman
Public Works Fiscal and Project Manager
ATTACHMENTS:
Attachment No. 1 – City of Pomona Ballots
City Vote Regarding the Formation of the Phillips Ranch Landscaping and Lighting Maintenance Assessment District