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redondo
BEACH
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Public Works Department 415 Diamond Street tel: 310318-0661 Engineering Services Division Redondo Beach, California 90277 fax: 310 374-4828 www.redondo.org
May 16, 2023
Honorable Mayor and Members of the City Council
City of Redondo Beach
415 Diamond Street
Redondo Beach, CA 90277
SUBJECT: Street Landscaping and Lighting Assessment District Engineer's Report
In compliance with instructions set forth in Resolution No. CC-2304-035 adopted by the City Council on April 4, 2023, I have prepared this Engineer's report pursuant to the provisions of the Landscaping and Lighting Act of 1972 ("Act), found in Division 15, Part 2, of the Streets and Highways Code of the State of California. This report is required to be presented to the City Council prior to any authorization to assess the District in the upcoming fiscal year.
The purpose of the report is to support a Council decision to levy assessments for financing the District's expenses. The estimated expenses include the cost of electrical energy, maintenance and improvements of public lighting facilities and maintenance and improvements of landscaped areas within the streets in the City of Redondo Beach for Fiscal Year 2023-24. There are no expenses related to CIP projects in this fiscal year and have not been since 2007. The City has replaced five (5) of existing marbelite street light poles and fixtures in the past fiscal year. Many more of the existing light poles are at the end of their useful life and several of them need to be replaced in the near future.
In addition to this letter and attached FY 2023-24 Financial Report, the Engineer's Report includes a District map, which is a large format document that is too large to be easily reproduced for this meeting. Section 22570 and 22571 of the Act requires the use of such maps.
boundaries of the City of Redondo Beach. The District map identifies the District's boundaries and the public lighting facilities and landscaped areas within the District, as shown on seven large City maps. The City's parcels (approximately 21,000) are categorized into Zones of Benefit per Section 22568 of the Act. Zone 1 includes parcels situated along residential streets. Zone 2 includes those situated along boulevards and within commercial areas. Each parcel's assessment is based on the unit cost to provide services within a zone multiplied by the linear footage of a property's frontage to the public right of way. It is estimated that 80% of all parcels are within Zone 1 and 20% in Zone 2.
These seven large City maps are referred to as "Plan No. 3000" • Specifications for landscaping and public lighting facilities are also incorporated onto these drawings.
Expenditures for operations and mainfenance of the District have continued to increase since the District's inception. Revenue raised by the annual assessment covers only a portion of the ongoing expenses. The gap between revenue and expenses is typically funded by a loan from the City's General Fund. A deficit of $997,054 was experienced in FY 21-22 and a deficit of $1,382,194 is anticipated for FY 22-23, based on the midyear budget report. The projected deficit for FY 23-24 is anticipated to be $1,037,300, assuming an assessment is collected. The anticipated expenses and revenues for the next fiscal year are detailed in the attached Financial Report. The reduction in the gap between revenues and expenses anticipated for FY 23-24 reflects a reduction in expenses due to the expiration of the one-time decision packages that were approved in FY 22-23 totaling $315,000.
Future increases in the assessment (i.e. revenue increases) can only be instituted if approved under the requirements of Proposition 218. This process would take about a year before rates could be increased. The last rate increase was in FY 1990-91.
Respectfully submitted by:
isu.
Andrew S. Winie, P.E.
City Engineer
Street Landscaping and Lighting Assessment District
FY 23-24 Financial Report
FY 23-24 Estimated Expenses
Personnel 878,405
671,817
Other Utilities 155,850
Supplies & Operations 301,189
Contract & Professional Services
Tree Trimming 160,660
Signal Maintenance
Other Equipment
Internal Service Charges
POB Debt 97,450
Total FY 23-24 Budget 2,567,900
Estimated Financial Resources
FY 23-24 Assessment 1,513,000
Public Services Lighting Fee 600
Other Revenues (Misc./Interest) 17,000
FY 23-24 Estimated Fund Deficit -General Fund Subsidy 1,037,300 Total Estimated Financial Resources 2,567,900
Typical Assessment
Rate per Foot* 40 Ft. Parcels
Zone 1 $1.48 $59.20
Zone 2 $3.02 $120.80
*This rate is the maximum that can currently be assessed