July 16, 2024, Item #13DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA RE PQ RT City of Poway July 16, 2024 Honorable Mayor and Members of the City C~cil Eric Heidemann, Director of Public Works f Danielle McIntosh, Senior Management Analysef (858) 668-4729 or [email protected] CITY COUNCIL Resolution Establishing Assessments for Poway Landscape Maintenance District 86-3 to be Collected on the San Diego County Property Tax Roll for Fiscal Year 2024-25 On June 4, 2024, City Council adopted Resolution No. 24-027 declaring the intention to levy and collect assessments within Landscape Maintenance District (LMD) 86-3 and set the public hearing for July 16, 2024. City Council is to consider approval of a resolution (Attachment A) authorizing the levy and collection of assessments for each affected parcel within LMD 86-3 for Fiscal Year (FY) 2024-25. FY 2024-25 assessment rate for LMD 86-3 Zone A is proposed to remain unchanged at the FY 2023-24 rate of $163 per benefit unit per year. FY 2024-25 assessment rate for LMD 86-3 Zone Bis proposed to increase from the FY 2023-24 assessment rate by 5.11 percent to $91.04 per benefit unit per year, based on the annual change in the San Diego-Carlsbad Consumer Price Index for All Urban Consumers (CPI). Landscape maintenance service levels for Zone A and Zone B will remain at level C and A, respectively, and may be subject to adjustments depending on frequency and magnitude of unplanned events. Recommended Action: It is recommended City Council take public input, close the public hearing and adopt the Resolution. Discussion: LMD 86-3 was formed on May 20, 1986, to maintain landscape improvements required as conditions of approval for the various subdivisions or developments included within the boundaries of LMD 86-3. A map showing LMD 86-3's boundaries is included as Attachment B. Each subdivision and/or development listed below was required to annex into LMD 86-3 as a condition of property development either through the final map process or by Council Resolution. REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 1 of 6
July 16, 2024, Item #13LMD 86-3 Zone A includes the following residential developments: TRACT PROJECT NAME TM TTM TTM 3994 88-03 94-02 The Pond Sycamore Springs Poway Oaks LMD 86-3 Zone B includes the following non-residential (commercial) developments: TRACT PROJECT NAME TPM 90-04 Wal-Mart TTM 90-05 Creekside Plaza DR 02-18 Poway City Center DR 98-07 /VAR 98-11 Poway Hyundai TPM 01-06 Hillside Village Apartments DR 05-05 Solara Apartments FY 2024-25 assessments for Zone A are proposed to remain unchanged at the FY 2023-24 rate of $163 per benefit unit per year; Zone B FY 2024-25 assessments are proposed to increase from $86.62 to $91.04 per benefit unit per year. In 1998, a ballot for an assessment increase with annual cost indexing based on the annual CPI in Zone A failed. As a result, it was necessary to reduce service levels to ensure LMD 86-3 expenses did not exceed projected revenue. Consequently, Zone A service level was reduced to level C. Landscape maintenance service level for Zone A will remain at level C. Service level C consists of performing landscape maintenance (e.g., irrigation inspection, removal of trash and debris, trimming of shrubs, fertilizing, mowing, edging, pruning and sweeping) for respective areas within Zone A on a monthly basis. Zone B passed the 1998-99 ballot allowing for the option of an annual increase based on the CPI. Because projected expenditures are exceeding revenues, an increase of 5.11 percent, the annual change in the CPI, is requested at this time for Zone B. The landscape maintenance service level for Zone B will remain at level A. Service level A consists of performing landscape maintenance (e.g., irrigation inspection, removal of trash and debris, trimming of shrubs, fertilizing, mowing, edging pruning, and sweeping) for respective areas within Zone Bon a weekly basis. City Council's approved FY 2024-25 Engineer's Report is on file in the Office of the City Clerk, 13325 Civic Center Drive and the Department of Public Works, 14467 Lake Poway Road, Poway, California. Environmental Review: This action is not subject to review under California Environmental Quality Act (CEQA). Fiscal Impact: LMD 86-3 Zone A does not include a voter-approved inflater which puts pressure on service levels as expenses increase over time due to inflation while revenues do not. FY 2024-25 LMD 86-3 Zone A assessment remains unchanged from the FY 2023-24 rate of $163 per benefit unit per year. Revenue for LMD 86-3 Zone A is comprised of $25,917 from assessments, $878 in estimated interest earnings 2 of6
July 16, 2024, Item #13and $1,668 in General Fund contributions. LMD 86-3 Zone B includes a voter-approved inflater which helps revenues keep pace with inflation. The assessment rate for FY 2024-25 is increasing by 5.11 percent, or the annual change in the CPI. FY 2024-25 LMD 86-3 Zone B assessment rate will increase from the FY 2023-24 rate of $86.62 to $91.04 per benefit unit per year. Revenue for LMD 86-3 Zone B is comprised of $19,799 from assessments, $2,158 in estimated interest earnings and $8,343 in General Fund contributions. Estimated revenues including the planned use of reserves in Zone B are sufficient to cover planned service levels. Service levels may be subject to adjustments depending on frequency and magnitude of unplanned events. Public Notification: A Notice of Public Hearing was published in the Poway News Chieftain on Thursday, June 20, 2024. Pursuant to Government Section 53753, all public notification requirements have been met. No responses have been received regarding proposed assessments at the time this report was written. Attachments: A. Resolution B. LMD 86-3 Map Reviewed/Approved By: Assistant City Manager 3 of6 Reviewed By: Alan Fenstermacher City Attorney Approved By: 0tfffi;2 Chris Hae City Manager
July 16, 2024, Item #13RESOLUTION NO. 24-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, ESTABLISHING ASSESSMENTS FOR POWAY LANDSCAPE MAINTENANCE DISTRICT NO. 86-3 TO BE COLLECTED ON THE SAN DIEGO COUNTY PROPERTY TAX ROLL FOR FISCAL YEAR 2024-25 WHEREAS, City Council of the City of Poway desires to have Landscape Maintenance District assessments collected on the San Diego County Property Tax Roll; WHEREAS, pursuant to provisions of City of Poway Resolution No. 00-034 (Policies for Landscape Maintenance Districts) and Assessment law being "Landscape and Lighting Act of 1972" (being part 2 of Division 15 of the California Streets and Highways Code), applicable provisions of "Proposition 218" (being Article XIII C of the California Constitution), and provisions of "Proposition 218 Omnibus Implementation Act" (being California Senate Bill 919), and in accordance with the Resolution of Intention, being City of Poway Resolution No. 24-027 adopted by City Council of the City of Poway, County of San Diego, State of California, in connection with proceedings for Landscape Maintenance District No. 86-3, the Assessment Engineer for the City of Poway has submitted an Engineer's Report for the District as required by California Street and Highways Code, Section 22565; WHEREAS, on June 4, 2024, at a regular meeting of Poway's City Council, amounts to be collected have been set forth in a public Engineer's Report; WHEREAS, on July 16, 2024, City Council held a duly advertised public hearing to solicit comments from the public, both for and against, relative to this matter; and WHEREAS, this action is authorized by laws of the State of California. NOW, THEREFORE, BE IT RESOLVED by City Council of the City of Poway as follows: SECTION 1: The Assessment Rates for two (2) zones are as follows: Zone A: Zone B: $163 per benefit unit per year $91.04 per benefit unit per year SECTION 2: The sum of assessments to be collected on the Fiscal Year 2024-25 San Diego County Property Tax Roll to provide for the maintenance of landscape improvements within Zones A and B of Landscape Maintenance District No. 86-3 are as follows: Zone A: Zone B: $25,917 $19,799 SECTION 3: Under assessment law, the City of Poway's General Benefit Contribution has been calculated for Zone A as $1,668 and Zone Bas $8,343. 4 of6 II II ATTACHMENT A
July 16, 2024, Item #13Resolution No. 24-Page 2 PASSED, APPROVED AND ADOPTED at a Regular Meeting of City Council of the City of Poway, California on the 16th day of July, 2024 by the following vote, to wit: AYES: NOES: ABSTAINED: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Carrie Gallagher, CMC, City Clerk 5 of 6
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