CITY OF POMONA
COUNCIL REPORT
July 17, 2023
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 2023-24 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 2023-24; and After receiving public comments and testimony, close the Public Hearing and adopt the following Resolution:
RESOLUTION NO. 2023-116 - 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 2023-24 ASSESSMENTS FOR THE CONSOLIDATED CITYWIDE STREET LIGHTING AND LANDSCAPING MAINTENANCE DISTRICT EXECUTIVE SUMMARY:
A public hearing is required prior to City Council adopting a Resolution (Attachment No. 1) to confirm the assessment diagrams, zone boundaries, and the assessments to be levied for FY 2023-24. Prior to conducting the public hearing, notification of the hearing (Attachment No. 2) is required. 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 will be presented to the City Council at the Public Hearing on July 17, 2023.
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, prepared prior to the draft Engineer’s Report, the City conservatively estimated that the assessments will generate approximately $1,266,255 in FY 2023-24. The draft engineer’s report estimates a total levy of $1,272,160 from a total of 7,891 parcels levied, including additional annual revenue of $2,090.32 in Zone C from the 136 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
$951,811
$142,818
$114,693
$62,838
$1,272,160
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 2023-24 Proposed Operating Budget. It should be noted that in the Phillips Ranch Zone A-B, the fund balance is expected to be nearly depleted in FY 2022-23. The City hired a consultant in FY 2022-23 to increase the assessment in Phillips Ranch to a sustainable level. A ballot measure was presented to property owners in the Spring of 2023 to raise the assessment, but the measure did not pass. Consequently, the City has had to reduce services to keep the budget in line with revenues, as there will not be enough fund balance to cover shortfalls. Additionally, the City will conduct a Proposition 218 process for the University Corporate Center Zone H to raise the assessment, as the fund balance will be depleted by the end of Fiscal Year 2023-24.
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
$178,233
$39,698
$31,518
$4,284
$253,733
Contractual Services
$569,836
$2,000
$26,869
$39,404
$638,109
Utilities
$139,600
$80,000
$46,803
$11,510
$277,913
Internal Services
$0
$0
$0
$0
$0
Other Operating Costs
$28,775
$15,400
$680
$5,300
$50,155
Total
$916,444
$137,098
$105,870
$60,498
$1,219,910
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 2023-24 levy of assessments was published in the Inland Valley Daily Bulletin on July 5, 2023.
PREVIOUS RELATED ACTION:
On June 5, 2023, the City Council approved the Engineer’s Report for the Consolidated Citywide Street Lighting and Landscaping Maintenance District, adopted Resolution No. 2023-89 declaring the City’s intent to levy assessments for FY 2023-24, and set a Public Hearing on the matter for July 17, 2023.
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 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 2023-24 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 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.
As previously mentioned, 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 2023-24. This action is necessary to meet the deadline set by the Los Angeles County Auditor-Controller for inclusion on the FY 2023-24 Assessment Roll.
Prepared by:
Maritza Sosa-Nieves, Senior Management Analyst
ATTACHMENTS:
Attachment No. 1 – Resolution No. 2023-116 Confirming the Assessment District Diagrams, Zone Boundaries, and the Levy of Fiscal Year 2023-24 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 2023-24 Public Hearing Regarding the Levy of Fiscal Year 2023-24 Assessments for the Consolidated Citywide Street Lighting and Landscaping Maintenance District