City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: FEBRUARY 07, 2023 FROM: FINANCE DEPARTMENT WARD: ALL
SUBJECT: RESOLUTION INITIATING PROCEEDINGS TO LEVY AND COLLECT ASSESSMENTS FOR FISCAL YEAR 2023-2024 IN THE STREET LIGHTING ASSESSMENT DISTRICT NO.1; APPOINTING WEBB MUNICIPAL FINANCE, LLC AS ENGINEER OF RECORD; AND ORDERING PREPARATION OF ENGINEER’S REPORT ISSUE:
Adopt a resolution to initiate proceedings to levy and collect assessments for Fiscal Year (FY) 2023/24 in the Street Lighting Assessment District No. 1; appoint Webb Municipal Finance, LLC as the Engineer of Record and order the preparation of the Engineer’s Report.
RECOMMENDATIONS:
That the City Council:
Adopt a resolution to initiate proceedings to levy and collect assessments for fiscal year 2023-2024 in the Street Lighting Assessment District No. 1; Appoint Webb Municipal Finance LLC, as the Engineer of Record; and Order the preparation of the Engineer’s Report.
BACKGROUND:
The Street Lighting Assessment District No. 1 was formed in July 1988 under the provisions of the Landscaping and Lighting Act of 1972. Passed by the voters in June 1997, Measure EE approved the continuation of the assessments at the same rates as originally established. The Engineer’s Report apportions a portion of the annual cost of maintaining and operating City Street Lights to the parcels within the various lighting zones (including residential, rural, and non-residential zones) through annual assessments.
DISCUSSION:
The annual process for the Street Lighting Assessment District No. 1 requires the City Council to adopt a Resolution ordering the preparation of the Annual Engineer’s Report. The Engineer’s Report outlines the street lighting expenses and apportions proposed assessments to offset the cost of maintenance per parcel for the coming fiscal year. Due to the rates which were set at the time of district formation, it is estimated the street light assessments will recover approximately 75% of the street light cost within the district this year, with the remaining cost subsidized though the General Fund. After the report is complete, Finance staff will schedule a public hearing and present the report to City Council.
STRATEGIC PLAN ALIGNMENT:
This item contributes to Strategic Priority 5 – High Performing Government and Goal 5.3 – Enhance communication and collaboration with community members, to improve transparency, build public trust, and encourage shared decision-making.
This item aligns with each of the five Cross-Cutting Threads as follows:
Community Trust – The preparation of an annual engineer’s report and levy process complies with the Landscaping and Lighting Act of 1972, under which the Street Lighting Assessment District No. 1 was formed. This process provides transparency for community members to whom the assessments are levied each year.
Equity – In order to maintain improvements within the Street Lighting Assessment District, the annual maintenance cost is funded through an annual levy calculated based on the special benefit shared be each parcel within the district.
Fiscal Responsibility – The assessments are levied annually to pay the costs associated with maintaining enhanced improvements within the district. This ensures that the additional cost of maintaining enhanced street light improvements is borne primarily by the property owners that benefit from them.
Innovation – Utilizing a Street Lighting Assessment District is an innovative way to offset the cost to maintain street light improvements within the City and assess property owners who receive the benefit.
Sustainability & Resiliency – The formation of a Street Lighting Maintenance District provides a transparent and equitable way to fund and report on maintenance of enhanced street light improvements within the City. The annual engineer’s report and levy process helps to ensure transparent reporting to all members of the community, and within the district.
FISCAL IMPACT:
There is no fiscal impact to the City related to this report. The cost to prepare this report is factored into the total anticipated expenses for the district is budgeted and available in the Special Districts Fund, Professional Services account 2380001-421000 for FY 2023/24.
Prepared by: Heidi Schrader, Debt & Treasury Manager
Certified as to
availability of funds: Edward Enriquez, Interim Assistant City Manager/Chief Financial Officer/City Treasurer
Approved by: Edward Enriquez, Interim Assistant City Manager/Chief Financial Officer/City Treasurer
Approved as to form: Phaedra A. Norton, City Attorney
Attachment: Resolution
Street Lighting Assessment DistrictηPage 2