July 16, 2024, Item #15DATE: TO: FROM: CONTACT: SUBJECT: Summary: AG EN DA REPORT City of Poway July 16, 2024 Honorable Mayor and Members of the City Council Eric Heidemann, Director of Public Works ~ Danielle McIntosh, Senior Management Analyst~ (858) 668-4729 or [email protected] Cl/' CITY COUNCIL Resolution Establishing Assessments for Poway Lighting District 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. 24-029 declaring intention to levy and collect assessments within the Poway Lighting District (District) and set the public hearing for July 16, 2024. City Council is to consider the approval of a resolution (Attachment A) authorizing the levy and collection of assessments for each affected parcel within the District for Fiscal Year (FY) 2024-25. FY 2024-25 assessment rates for District's Zone A, Zone Band Zone Care proposed to remain unchanged at the FY 2023-24 rates of $15, $3.75 and $13.58 per benefit unit per year, respectively. Recommended Action: It is recommended City Council take public input, close the public hearing and adopt the Resolution. Discussion: The District was formed by the City Council on May 12, 1986. There are 16,478 parcels in the City of Poway. The District currently assesses 15,035 of these parcels. The benefit units derived from these assessable parcels total 22,163 for Zone A, 3,898 for Zone Band 25,970 for Zone C. Zone A parcels have street lighting within their immediate vicinity and share equitably in benefit from major arterial street lighting. Zone A assessments are based on $15 per benefit unit per year for improved parcels and $7.50 per benefit unit per year for vacant, buildable parcels. Zone B parcels do not have benefit of immediate street lighting but share equitably in benefit from major arterial street lighting. Zone B assessments are based on $3.75 per benefit unit per year for improved parcels. Because the San Diego County Assessor (County) lists funds in even amounts on county tax statements, the benefit unit assessment will be $3.75. Vacant parcels are proposed to be assessed at a partial rate of $1.88 (50 percent of $3.75) per benefit unit. 1 of 5
July 16, 2024, Item #15Zone C assessments, which fund the operation and maintenance of traffic signals, safety lights, flashing beacons, and lighted street name signs within the City boundaries, are collected from all accessible parcels in Poway. Zone C assessments are based on $13.58 per benefit unit per year for improved parcels and $6.80 per benefit unit per year for vacant, buildable parcels. Public parks, facilities and parking lots are not included in the District. The FY 2024-25 assessments are based on the District's operations, maintenance, administration and capital replacement costs. Assessments are proposed to remain unchanged from the FY 2023-24 rates. Total revenues are estimated to be $1,533,670, which includes $332,440 in Zone A assessments, $14,586 in Zone B assessments, $352,663 in Zone C assessments, the annual ad valorem tax (general tax contributions), City General Benefit contribution, and estimated interest earnings. In FY 2019-20, approximately 3,300 low pressure sodium (LPS) lights were converted to light emitting diodes (LEDs). Since the LED conversion, the District has saved on energy costs compared to the FY 2019-20 budget. In 2021-22 energy costs for LPS were incorporated. Beginning in FY 2019-20, $250,000 will be requested each year to replace aging signalized intersections. In FY 2024-25, the District will continue signalized intersection equipment replacement. Each fiscal year, the capital improvement project fund commitments will be re-evaluated to ensure available funding for ongoing capital improvements. The 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: The District 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 District Zone A, Zone B and Zone C assessment rates remain unchanged from the FY 2023-24 rate of $15.00, $3.75 and $13.58 per benefit unit per year, respectively. Revenue for the District is comprised of $699,689 from assessments, $73,962 in estimated interest earnings, $560,493 in general tax contributions, $41,586 in miscellaneous revenue and $157,940 in General Fund contributions. Estimated revenues are sufficient to cover ongoing maintenance and capital improvement projects. 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. REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 2 of 5
July 16, 2024, Item #15Attachments: A. Resolution Reviewed/Approved By: Assistant City Manager 3 of 5 Reviewed By: Alan Fenstermacher City Attorney
July 16, 2024, Item #15RESOLUTION NO. 24-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, ESTABLISHING ASSESSMENTS FOR POWAY LIGHTING DISTRICT 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 Lighting District assessments collected on the San Diego County Property Tax Roll; WHEREAS, pursuant to the provisions of the City of Poway Resolution No. 00-035 (Policies for Lighting District) and Assessment law being the "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 XI II C of the California Constitution), and provisions of the "Proposition 218 Omnibus Implementation Act" (being California Senate Bill 919), and in accordance with the Resolution of Intention, being City of Poway Resolution No. 24-029 adopted by the City Council of the City of Poway, County of San Diego, State of California, in connection with the proceedings for Poway Lighting District, 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 the City Council of the City of Poway as follows: SECTION 1: The Assessment Rates for three (3) zones are as follows: Zone A: Zone B: Zone C: $15 per benefit unit per year; $7.50 per benefit unit per year for vacant parcels $ 3. 75 per benefit unit per year; $1.88 per benefit unit per year for vacant parcels $13.58 per benefit unit per year; $6.80 per benefit unit per year for vacant parcels SECTION 2: The sum of assessments to be collected on the Fiscal Year 2024-25 San Diego County Property Tax Roll to provide for costs of administering, operating and maintaining the Poway Lighting District are as follows: Zone A: Zone B: Zone C: 4of 5 $332,440 $14,586 $352,663 ATTACHMENT A
July 16, 2024, Item #15Resolution No. 24-Page 2 SECTION 3: Under assessment law, the City of Poway's General Benefit Contribution has been calculated as $157,940. 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 5