City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-00054 5/30/2023 Public Hearing Item 25.
Neighborhood Landscaping District Fiscal Year (FY) 2023/24 Annual Assessments (Noticed 05/19/2023)
File ID: 2023-00054
Location: District 1, Represented by Councilmember Kaplan; District 2, Represented by Councilmember Loloee; District 5, Represented by Councilmember Maple; District 6, Represented by Vice Mayor Guerra and Mayor Steinberg; District 7, Represented by Councilmember Jennings; and District 8, Represented by Mayor Pro Tem Vang and Mayor Steinberg Recommendation: Conduct a public hearing and upon conclusion, adopt a Resolution confirming the budget, assessment diagram, and levying the assessment for FY2023/24 for the Neighborhood Landscaping District (District).
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: Eric Frederick, Senior Development Project Manager, [email protected], (916) 808-5129, Department of Finance
Attachments:
1-Description/Analysis
2-Background
3-Schedule of Proceedings
4-Resolution
5-Exhibit A (District Map)
6-Exhibit B (FY2023/24 Subdivision Budgets & Parcel Assessments) 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).
Subdivisions included in the District are levied an annual assessment to fund the maintenance of landscaping improvements located adjacent to and/or along the frontage of those subdivisions. A map showing the subdivisions included in the District is provided in Exhibit A to the attached resolution.
File ID: 2023-00054 5/30/2023 Public Hearing Item 25.
The District is required by the 1972 Act to present an annual assessment and diagram (i.e., a map showing all parcels of real property within the District) to Council for confirmation, both of which were provided in the Engineer’s Annual Report approved by Council on May 2, 2023 (Resolution No. 2023- 0107). Council also approves the annual budget for the District per City Code section 3.124.190.
Confirmation of the assessment and diagram will authorize the City to levy and collect assessments in an amount sufficient to provide funding for maintenance of the landscaped areas adjacent to the subdivisions in the District for FY2023/24. 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: The recommended action supports funding, via property-based assessments, for maintenance of landscaping improvements located adjacent to or along the frontage of residential subdivisions within the District.
Financial Considerations:
The total District assessment is projected to be $340,080 for FY2023/24 in support of a projected operating budget of $348,237, with the difference being paid from available fund balance. This equates to a weighted average proposed assessment of $113.29 per single family parcel, which is an increase of $3.32 or 3.02% over the weighted average actual assessment levied in FY2022/23. The assessments and the method by which they were derived are detailed in the Engineer’s Annual Report.
The 34 subdivisions in the District each have assessments that vary based on their operational needs, and for each subdivision the assessments proposed to be levied are at or below their
File ID: 2023-00054 5/30/2023 Public Hearing Item 25.
FY2023/24 maximum authorized amounts. As discussed in more detail in the Background section of this report, the maximum authorized assessment varies for each subdivision. In 16 of the 34 subdivisions the maximum authorized assessment does not increase. In the remaining 18 subdivisions, the maximum authorized assessment is subject to an annual increase determined by the percentage change in the Consumer Price Index (CPI) - San Francisco All Urban Consumers for the previous year, but not to exceed either 3% or 4% depending on the subdivision. For each subdivision in the District, the FY2023/24 costs and a breakdown of the maximum authorized assessment and proposed actual assessment per single-family lot is provided in Exhibit B to the Resolution.
It is projected that seven subdivisions will end FY2022/23 with a negative fund balance. Infrastructure Finance staff continues to work with the Department of Public Works (who manages performance of the maintenance work) to develop funding and maintenance solutions for these subdivisions. The FY2023/24 Proposed Budget reflects a plan to continue to balance the budget of those seven subdivisions and ensure each subdivision in the District stays within budget.
The assessments and the method by which they were derived are detailed in the Engineer’s Annual Report on file with the Infrastructure Finance Division of the Finance Department.
Local Business Enterprise (LBE): Not applicable.
ATTACHMENT 2
BACKGROUND
On July 23, 1991, the City Council approved formation of the Neighborhood Landscaping District (District), formerly known as the Subdivision Landscaping Maintenance District. At the time of formation, the initial District included the Laguna Verde and Laguna Parkway subdivisions, located in Council District 8. Since then, the City Council has annexed 32 additional subdivisions to the District for a total of 34 subdivisions. A map showing the location of all 34 subdivisions is included as Exhibit A to the Resolution.
District services include the maintenance of landscaping improvements located adjacent to and/or along the frontage of residential subdivisions. The annual assessments fund the costs for the maintenance of these improvements and costs for the District’s administration activities, including billing. For 18 of the subdivisions, at the time the subdivisions were annexed to the District, the City Council authorized a provision to mitigate cost increases by automatically increasing the maximum annual assessment each year based on the annual average increase in the CPI, San Francisco Area - All Urban Consumers. However, this automatic increase cannot exceed three percent (3%) in four of these subdivisions and cannot exceed four percent (4%) in the other 14 subdivisions. For FY2023/24, the change in the prior year annual average CPI was 5.6%. Therefore, the annual maximum assessments for the four subdivisions subject to the automatic increase that cannot exceed 3% will be increased by 3%, and the annual maximum assessments in the remaining 14 subdivisions subject to the automatic increase will be increased by 4%. The remaining 16 subdivisions do not have an automatic CPI increase provision and their maximum annual assessment does not increase above the amount set forth at the time the subdivision annexed to the District.
At the conclusion of the public hearing, staff will recommend Council adopt the District budget and assessment diagram, and levy the assessments. The total property owner assessment in FY2023/24 is projected to be $340,080.
ATTACHMENT 3
SCHEDULE OF PROCEEDINGS
NEIGHBORHOOD LANDSCAPING DISTRICT
FY2023/24 SCHEDULE
March 21, 2023 Council Directed Filing of Engineer’s Report
May 2, 2023 Council Approved Engineer’s Annual Report, Adopted Resolution of Intention and Set Date for Public Hearing
May 19, 2023 Notice of Public Hearing Published
May 30, 2023 Hold Public Hearing
Council Approves District Budget & Orders Annual Levy of Assessments
August 2023 Assessments to County for Placement on Tax Roll
RESOLUTION NO.
Adopted by the Sacramento City Council
Resolution Confirming Budget, Diagram, and Levying Assessment for the Neighborhood Landscaping District for Fiscal Year 2023/24 (Pursuant to Landscaping and Lighting Act of 1972)
BACKGROUND
A. The Neighborhood Landscaping District (District), as depicted in Exhibit A, was established by the City Council and approved by the Laguna Verde and Laguna Parkway Subdivision property owners on July 23, 1991. City Council subsequently annexed 32 additional subdivisions to the District.
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 maintenance services 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 21, 2023, 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 Engineer’s Annual Report in accordance with the provisions of the 1972 Act (Resolution No. 2023-0072).
D. On May 2, 2023, the City Council adopted a resolution approving the Engineer’s Annual Report filed by the Engineer of Work and declaring its intention to levy and collect assessments within the District for FY2023/24, and set a public hearing for May 30, 2023 (Resolution No. 2023-0107). Notice of the hearing was given on May 19, 2023, in accordance with the 1972 Act and City Code Chapter
3.124.
E. The maximum authorized assessments for some of the subdivisions within the District will be increasing for FY2023/24 according to the annual increase methodology previously adopted by the City Council. In 19 of the subdivisions, the proposed assessments for FY2023/24 are higher than the actual assessments levied in FY2022/23, however in all cases the proposed assessments are at or below their maximum authorized amounts, as shown on Exhibit B.
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 E are true and correct.
Section 2. The City Council confirms the annual budget for the District, as set forth in Exhibit B and as provided in the Engineer’s Annual Report for the District.
Section 3. The City Council confirms the assessment diagram and the assessment roll set forth in the Engineer’s Annual Report for the District and levies the assessments set forth in the assessment roll in the Engineer’s Annual Report.
Section 4. 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 and levy of assessments for FY2023/24.
Section 5. Exhibits A and B are part of this resolution.
Table of Contents:
Exhibit A – District Map
Exhibit B – FY2023/24 Subdivision Budgets & Parcel Assessments
EXHIBIT A
EXHIBIT A-1
NEIGHBORHOOD LANDSCAPING DISTRICT
LOCATION MAP LEGEND
1 9
Arlington Park #1 Villa Palazzo
Arlington Park Creekside #2
Arlington Park Creekside #3 10
Arlington Park Creekside #4 Windemere Estates
Wickford Square
2 11
Jacinto Village #3 East Land Park Village
Shasta Meadows
12 3 Del Paso Nuevo #1 & #3
Laguna Vista
13 4 Chardonnay
Cameron 5
Laguna Vega 14
Sheldon Farms Kelton
Sheldon Whitehouse
15 5 Sunrise 94
Laguna Verde #1
Laguna Verde #2 16
Laguna Parkway Jones Ranch
Newport Cove
17 6 Elder Place
Regency Place
Stonewood 18
Zorba Court
7 Brookfield Meadows #2 19
Colony Brookfield Evergreen Phase I
Liberty Lane
20 8 66th Street Subdivision
Carriage Estates
EXHIBIT B
NEIGHBORHOOD LANDSCAPING DISTRICT SUBDIVISION BUDGET AND PARCEL ASSESSMENTS FUND 2205, FOR FY2023/24
The annual budget for each individual subdivision is as follows:
FY2023/24
Expenditures
66th Street Subdivision 1,367 4,674 5,290 751 Arlington Pk #1 (173) 5,628 4,765 690 Arlington Pk Creekside #2 2,864 20,140 21,342 1,662 Arlington Pk Creekside #3 (157) 7,200 6,807 236 Arlington Pk Creekside #4 (445) 7,735 7,356 (66) Brookfield Meadows #2 8,998 14,738 13,644 10,092 Cameron 5 966 7,931 7,651 1,246 Carriage Estates 14,973 8,596 9,087 14,482 Chardonnay 2,142 3,686 5,325 503 Colony Brookfield 8,916 14,060 13,673 9,303 Del Paso Nuevo (Units 1 and 3) 16,478 16,897 30,599 2,776 East Land Park Village 10,077 25,941 29,435 6,583 Elder Place 10,444 6,800 7,360 9,884 Evergreen Phase I 11,692 - - 11,692 Jacinto Village #3 448 4,701 1,199 3,950 Jones Ranch 12,374 5,422 6,363 11,433 Kelton 4,327 8,848 8,408 4,767 Laguna Parkway 5,833 20,040 19,882 5,991 Laguna Vega 2,896 16,399 14,260 5,035 Laguna Verde 14,355 12,731 12,036 15,050 Laguna Verde 2 798 7,669 7,815 652 Laguna Vista (1,101) 8,640 10,031 (2,492) Liberty Lane 5,065 9,426 9,486 5,005 Newport Cove 14,247 7,977 8,635 13,589 Regency Place 6,228 9,047 7,993 7,282 Shasta Meadows 2,937 7,486 8,688 1,735 Sheldon Farms (1,191) 13,580 12,507 (118) Sheldon Whitehouse 2,524 12,844 11,687 3,681 Stonewood 8,528 8,268 7,339 9,457 Sunrise 94 3,264 5,265 6,363 2,166 Villa Palazzo (55) 7,485 7,004 426 Wickford Square (1,829) 17,280 13,480 1,971 Windemere Estates 2,879 9,500 9,382 2,997 Zorba Court 1,483 3,446 3,348 1,581 Total 172,152 340,080 348,237 163,995
Subdivision
FY2023/24
Estimated
Beginning Fund
Balance
FY2023/24
Assessments
FY2023/24
Estimated
Ending Fund
Balance
EXHIBIT B (Continued)
The following is a breakdown of the actual cost per single-family lot in each subdivision.
** This subdivision is annexed but inactive due to a lack of development. 66th Street Subdivision 19 232.08 289.30 246.00 Arlington Pk #1 84 67.00 67.00 67.00 Arlington Pk Creekside #2 76 265.00 265.00 265.00 Arlington Pk Creekside #3 60 120.00 120.00 120.00 Arlington Pk Creekside #4 119 65.00 65.00 65.00 Brookfield Meadows #2 55 260.16 267.96 267.96 Cameron 5 26 293.28 305.03 305.02 Carriage Estates 23 373.74 373.74 373.74 Chardonnay 97 38.00 38.00 38.00 Colony Brookfield 74 190.00 190.00 190.00 Del Paso Nuevo (Units 1 and 3) 79 194.44 225.14 213.88 East Land Park Village 90 277.14 288.23 288.22 Elder Place 14 464.28 575.24 485.70 Evergreen Phase I ** 60 - 140.95 - Jacinto Village #3 29 155.88 162.12 162.08 Jones Ranch 23 218.26 340.26 235.72 Kelton 146 60.60 60.60 60.60 Laguna Parkway 318 63.02 63.02 63.02 Laguna Vega 270 58.40 72.05 60.74 Laguna Verde 128 99.46 99.46 99.46 Laguna Verde 2 43 178.34 178.34 178.34 Laguna Vista 72 107.12 164.66 120.00 Liberty Lane 74 125.22 229.78 127.38 Newport Cove 62 128.66 128.66 128.66 Regency Place:
Single Family 133 52.88 52.88 52.88 Multi Family 56 35.96 35.97 35.96 Shasta Meadows 22 327.16 340.26 340.26 Sheldon Farms 103 119.86 172.92 131.84 Sheldon Whitehouse 163 76.50 78.80 78.80 Stonewood 261 30.82 31.68 31.68 Sunrise 94 19 266.46 277.12 277.10 Villa Palazzo 80 85.06 105.00 93.56 Wickford Square 103 161.32 167.77 167.76 Windemere Estates 50 190.00 190.00 190.00 Zorba Court 9 371.72 382.94 382.88 Actual
Assessment
FY2022/23
Proposed
Actual
FY2023/24Subdivision # of Lots
Maximum
Authorized in
FY2023/24