City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-00300 May 24, 2022 Consent Item 05
Title: Citywide Landscaping & Lighting Assessment District - Initiate Annual Proceedings Fiscal Year 2022/23
Location: Citywide
Recommendation: Adopt a Resolution: 1) approving the Fiscal Year (FY) 2022/23 Engineer’s Annual Report for the Citywide Landscaping and Lighting Assessment District (District); 2) declaring the intention to levy and collect assessments for FY2022/23 improvements for the District; and 3) setting a time and place for a Public Hearing for June 21, 2022.
Contact: Eric Frederick, Senior Development Project Manager, [email protected]
, (916) 808-5129; Sheri Smith, Special Districts Manager [email protected], (916) 808-7204, Department of Finance
Presenter: None.
Attachments:
1-Description/Analysis
2-Background
3-Schedule of Proceedings
4-Proposed FY2022/23 Citywide L&L District Budget Table 5-Resolution
6-Exhibit A (Proposed FY2022/23 District Budget & Parcel Assessments) 7-Exhibit B (FY2022/23 Engineer’s Annual Report)
Description/Analysis
Issue Detail: The District is a special assessment district formed under the California Landscaping and Lighting Act of 1972 (California Streets and Highways Code § 22500 et seq.) (1972 Act). Properties located in the District are levied an annual assessment to fund certain landscape and lighting maintenance and construction services throughout the City, including arterial and intersection lighting, neighborhood street lighting, maintenance of medians, street trees, and neighborhood parks, and graffiti abatement.
Pursuant to the 1972 Act and City Code Chapter 3.124, an Engineer’s Annual Report (Annual Report) for the District is required to be prepared for Council review and approval. The Annual Report describes the improvements to be maintained by the District and recommends the assessments to be collected to fund such maintenance. The Annual Report has been prepared and, on March 15, 2022, Council directed that such Annual Report be filed with the City Clerk.
Council approval of the Annual Report is now required before the City can collect assessments to provide funding for the maintenance and construction services described above and as detailed in the Annual Report. The Council must also adopt a Resolution of Intention for its levy and collection of assessments for the District and then hold a hearing at a future date to formally confirm the assessments. Additional information on this District is provided in the Background section of this report.
Policy Considerations: The actions in the recommended Resolution are required by the 1972 Act and City Code Chapter 3.124 for annual proceedings of an existing district.
Economic Impacts: None.
Environmental Considerations:
California Environmental Quality Act (CEQA): Under the CEQA Guidelines, continuing administrative activities of an assessment district and creation of government funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment do not constitute a project and are therefore exempt from CEQA review (14 Cal. Code Regs. § 15378(b)(2), (b)(4)).
Sustainability: Not applicable.
Commission/Committee Action: None.
Rationale for Recommendation: Approval of the Annual Report (Exhibit B to the attached Resolution) supports funding the maintenance and construction services described above and in the Annual Report.
The recommended Council action is necessary to allow staff to notify the public of the proposed hearing, which has been set for June 21, 2022. At the conclusion of the public hearing, staff will recommend Council adopt the budget and levy the assessments.
Financial Considerations: Each year the District assessment and budget are developed, taking into consideration several factors including the cost of services, the projected number of parcels in each assessment category, and the amount of projected surplus or deficit in the District fund balance at the end of the current fiscal year. As shown on Attachment 4 to this report, the proposed FY2022/23 District expenditure budget totals $20,107,832, an increase of $631,234 from the current FY2021/22 District expenditure budget. This increase is the direct result of increasing costs of providing services.
Council previously authorized a provision to mitigate cost increases by automatically adjusting the maximum annual assessment each year based on the April-to-April change in the Consumer Price Index - San Francisco All Urban Consumers (CPI), but not to exceed 3% in any year. For FY2022/23, the change in the April 2021 and April 2022 CPI was 5%, and therefore the proposed increase in the FY2022/23 assessment by land use category is 3%.
This equates to a maximum increase of $2.72 for a single-family residential parcel and $53.18 for a commercial parcel for FY 2022/23 and is necessary to maintain service levels. The FY2022/23 assessments are equal to the highest authorized amount for the District. Based on this increase, the total FY2022/23 assessment revenue is projected to be $19,336,020.
The $771,812 difference between the expenditure budget and the projected assessment revenue is being funded from available fund balance.
Local Business Enterprise (LBE): None.
ATTACHMENT 2
BACKGROUND
The District, established in August of 1989, provides funding for the maintenance and rehabilitation of City parks and other public landscaped areas, street tree maintenance, and the energy and maintenance cost of streetlights throughout the City. Property owners are assessed in accordance with a series of benefit formulas adopted by Council in 1989. Annual assessments are paid by property owners with their regular County property taxes. Each year the City must update and adopt the Annual Report and obtain approval of the assessment associated with each land use designation.
The budget is divided into two categories as described below. In addition to the maintenance activity, each category also contains a proportionate share of administration and billing costs for the District.
1) Street Related Operations and Maintenance: Safety lighting, neighborhood lighting, median maintenance, and street tree maintenance.
2) Ongoing Park Maintenance, Park Improvements, and Graffiti Abatement: Park maintenance, graffiti abatement, and funding for park capital improvement projects if available. This portion of the assessment was approved by voters in November 1996.
The budget by category is provided in Attachment 4.
ATTACHMENT 3
FY2022/23 SCHEDULE OF PROCEEDINGS
CITYWIDE LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
March 15, 2022 Council Directed Filing of Engineer’s Report
May 24, 2022 Council Approves Engineer’s Report, Considers Resolution of Intention and Sets Date for Public Hearing
June 10, 2022 Publish Notice of Public Hearing
June 21, 2022 Hold Public Hearing
Council Orders Annual Levy
August 2022 Assessments to County for Placement on Tax Roll ATTACHMENT 4
PROPOSED FY2022/23 BUDGET FOR FUND 2232
CITYWIDE LANDSCAPING AND LIGHTING DISTRICT
With 3% CPI adjustment in assessments
Assessment Category
Approved
FY2021/22
Proposed
FY2022/23
Street Related Operations & Maintenance:
Safety Lighting & Medians $2,800,000 $2,845,000
Neighborhood Street Lighting Maintenance 5,264,763 5,440,000 Street Tree Maintenance 6,337,811 6,625,000
Administration & Billing 256,801 263,205
Subtotal Street Related O&M $14,659,375 $15,173,205
On-Going Park Maintenance:
Park Maintenance & Improvements $4,400,000 $4,500,000
Graffiti Abatement 329,700 348,000
Administration & Billing 87,523 86,627
Subtotal On-Going Park Maintenance: $4,817,223 $4,934,627
TOTAL DISTRICT BUDGET $19,476,598 $20,107,832
Fund Balance Offset (868,852) (771,812)
TOTAL ASSESSED TO PROPERTY
OWNERS: $18,607,746 $19,336,020
RESOLUTION NO.
Adopted by the Sacramento City Council
Resolution Approving Engineer’s Annual Report and
Intention to Levy and Collect Assessments for Maintenance of Improvements for the Citywide Landscaping and Lighting Assessment District No. 2 for Fiscal Year (FY) 2022/23
(Pursuant to Landscaping and Lighting Act of 1972)
BACKGROUND
A. The Citywide Landscaping and Lighting Assessment District (District) was established by the City Council on August 1, 1989, by adoption of Resolution No. 89-600.
B. The City Council established the District under the Landscaping and Lighting Act of 1972 (California Streets and Highways Code § 22500 et seq.) (the 1972 Act) and City Code Chapter 3.124, and has previously levied assessments on property in the District to pay for landscaping and lighting maintenance and related services to be provided within the District; all in accordance with the 1972 Act and City Code Chapter 3.124.
C. On March 15, 2022, the City Council directed the Supervising Engineer of the Department of Public Works, designated by the City Council as the Engineer of Work for the District, to file an annual report in accordance with the provisions of the 1972 Act (Resolution No. 2022-0075).
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City Council finds and determines that the background statements A through C are true and correct.
Section 2. The City Council hereby approves the Engineer’s Annual Report for FY2022/23 attached hereto as Exhibit B and on file with the Infrastructure Finance Division of the Department of Finance, designated by the City Clerk’s Office to be the repository of documents associated with special districts.
Section 3. The City Council hereby authorizes the City Manager or the City Manager’s designee to make any necessary budgetary adjustments associated with the approval of the Engineer’s Annual Report for FY2022/23.
Section 4. The City Council intends to levy and collect assessments within the District during FY2022/23. The area of land to be assessed is located in the City of Sacramento, Sacramento County and is described in the Engineer’s Annual Report attached hereto as Exhibit B.
Section 5. The District generally provides the following services for improvements in the District:
(1) landscaping; (2) maintenance or construction of statuary fountains, and other ornamental structures and facilities; (3) all works or improvements used or useful for the lighting of public places, including ornamental standards, luminaries, poles, traffic signals, supports, tunnels, manholes, vaults, conduits, pipes, wires, conductors, guys, stubs, platforms, braces, transformers, insulators, contacts, switches, capacitors, meters, communication circuits, appliances, attachments, and appurtenances; (4) maintenance or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance or servicing thereof including grading, clearing, removal of debris, curbs, gutters, walls, sidewalks, paving, water irrigation, drainage, or electrical facilities; (5) park and recreational improvements including, but not limited to, land preparation such as grading, leveling, cutting and filling, sod landscaping, irrigation systems, sidewalks and drainage, lights, playground equipment, play courts, and public restrooms; and (6) the acquisition of land for park, recreational, or open-space purposes.
Section 6. In accordance with the City Council’s resolution directing the filing of an Engineer’s Annual Report, the Engineer of Work has filed the report required by the 1972 Act with the Infrastructure Finance Division. All interested parties are referred to that report for a full and detailed description of the improvements, the boundaries of the assessment district, and the proposed assessments upon assessable lots and parcels of land within the assessment district.
Section 7. At 5:00 pm on Tuesday, June 21, 2022, the City Council will conduct a public hearing on the question of the levy and collection of the proposed annual assessment for the District. The public hearing is scheduled to be conducted by Zoom teleconferencing pursuant to City Council findings under California Government Code section 54953(e) related to the COVID-19 pandemic state of emergency. However, if the City Council orders City Council meetings to resume in person, then the location of the public hearing will be the City Council Chambers, New City Hall, 915 I Street (first floor), Sacramento, California. The location of the public hearing will be specified on the agenda for the City Council meeting.
Section 8. The FY2022/23 assessments are adjusted by 3% from the FY2021/22 assessment amount according to the automatic annual adjustment methodology previously adopted by the City Council. Such FY2022/23 assessments are equal to the highest authorized amount for this District. A detailed description of the proposed assessments for FY2022/23 is shown on Exhibit A attached hereto.
Section 9. The City Clerk is authorized and directed to give the notice of hearing required by the 1972 Act.
Section 10. Exhibits A and B are part of the resolution.
Table of Contents:
Exhibit A – Proposed FY2022/23 District Budget & Annual Parcel Assessments Exhibit B – FY2022/23 Engineer’s Annual Report
EXHIBIT A
CITYWIDE LANDSCAPING & LIGHTING DISTRICT
PROPOSED DISTRICT BUDGET AND PARCEL ASSESSMENTS
FY2022/23
Estimated Beginning Available Fund Balance $4,716,492
Total Assessed to Property Owners $19,336,020
Total Resources $24,052,512
Street Related Operations and Maintenance $14,910,000
Park Maintenance and Graffiti Abatement $4,848,000
Administration and Billing $349,832
Total Expenditures $20,107,832
Estimated Ending Available Fund Balance $3,944,680
Year-Over-Year Change in Available Fund Balance ($771,812)
PROPOSED ANNUAL PARCEL ASSESSMENTS FY2022/23
Business Property
(Parcel Square Ft.)
Assessment
Components
Single
Family
Residence
Multi-
Family
Residence 0-25,000
25,001-
100,000
100,001 or
more Church
Street Related O&M:
Safety & Neighborhood
Lighting Maintenance &
Replacement Program,
Median Maintenance &
Construction, Tree
Maintenance 137.82 689.07 1,433.26 39.38
With Lights: 71.10 49.77
Without Lights: 34.22 23.96
Park Facilities &
Related O&M:
Park Maintenance,
Youth Employment
Program, Graffiti
Abatement 22.05 15.00 37.71 188.54 392.15 10.77
Proposed Assessment
(rounded): $175.52 $877.60 $1,825.40 $50.14
With Lights: $93.14 $64.78
Without Lights: $56.26 $38.96
Current Year
Assessment (FY21/22): 170.42 852.04 1,772.22 48.68
With Lights: 90.42 62.89
Without Lights: 54.62 37.83
Change in assessment
with 3.00% CPI
adjustment: 5.10 25.56 53.18 1.46
With Lights: 2.72 1.89
Without Lights: 1.64 1.13