City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-02564 6/20/2023 Public Hearing Item 21.
Citywide Landscaping & Lighting Assessment District Fiscal Year (FY) 2023/24 Annual Proceedings [Noticed 06/09/2023]
File ID: 2022-02564
Location: Citywide
Recommendation: Conduct a public hearing and upon conclusion, adopt a Resolution confirming the budget and assessment diagram, and levying the assessment for FY2023/24 for the Citywide Landscaping and Lighting 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-Proposed FY2023/24 District Budget
5-Resolution
6-Exhibit A (FY2023/24 District Budget & 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).
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.
File ID: 2022-02564 6/20/2023 Public Hearing Item 21.
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 30, 2023 (Resolution No. 2023-0157). Confirmation of the assessment and diagram will authorize the City to levy and collect assessments to fund the maintenance and construction services described above for FY2023/24.
Additional information on this District is provided in the Background section of this report and the proposed FY2023/24 budget for each improvement category is provided in Attachment 4 of this report.
Policy Considerations: The actions in the recommended resolution are required by the 1972 Act for annual proceedings of an existing district.
Economic Impacts: Not applicable.
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 a variety of 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.
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 FY2023/24 District expenditure budget totals $21,503,379, an increase of $1,395,547 from the approved FY2022/23 District expenditure budget. This increase is the direct result of increasing costs of providing services and greater one-time costs for capital projects from what was included in the current FY2022/23 budget.
File ID: 2022-02564 6/20/2023 Public Hearing Item 21.
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 FY2023/24, the change in the April 2022 and April 2023 CPI was 4.19%, and therefore the proposed increase in the FY2023/24 assessment by land use category is 3%. This equates to a maximum increase of $2.80 for a single-family residential parcel and $54.74 for a commercial parcel for FY2023/24 and is necessary to maintain service levels. The FY2023/24 assessments are equal to the highest authorized amount for the District. Based on this increase, the total FY2023/24 assessment revenue is projected to be $20,019,008 and is included in the FY2023/24 Approved Budget.
The $1,484,372 difference between the expenditure budget and the projected assessment revenue is being funded from available fund balance.
Local Business Enterprise (LBE): Not applicable.
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 Engineer’s 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
FY2023/24 SCHEDULE OF PROCEEDINGS
CITYWIDE LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
March 14, 2023 Council Directed Filing of Engineer’s Annual Report
May 30, 2023 Council Approved Engineer’s Annual Report, Adopted Resolution of Intention, and Set Date for Public Hearing
June 9, 2023 Published Notice of Public Hearing
June 20, 2023 Council Holds Public Hearing and Orders Annual Levy
August 2023 Assessments to County for Placement on Tax Roll ATTACHMENT 4
PROPOSED FY2023/24 BUDGET FOR FUND 2232
CITYWIDE LANDSCAPING AND LIGHTING DISTRICT
With 3% CPI adjustment in assessments
Assessment Category
Approved
FY2022/23
Proposed
FY2023/24
Street Related Operations & Maintenance:
Safety Lighting & Medians $2,845,000 $2,930,000
Neighborhood Street Lighting Maintenance 5,440,000 6,391,200 Street Tree Maintenance 6,625,000 6,823,750
Administration & Billing 263,205 387,041
Subtotal Street Related O&M $15,173,205 $16,531,991
On-Going Park Maintenance:
Park Maintenance & Improvements $4,500,000 $4,600,000
Graffiti Abatement 348,000 255,000
Administration & Billing 86,627 116,388
Subtotal On-Going Park Maintenance: $4,934,627 $4,971,388
TOTAL DISTRICT BUDGET $20,107,832 $21,503,379
Fund Balance Offset (771,812) (1,484,372)
TOTAL ASSESSED TO PROPERTY
OWNERS: $19,336,020 $20,019,008
RESOLUTION NO.
Adopted by the Sacramento City Council
Resolution Confirming Budget, Diagram, and
Levying Assessment for the
Citywide Landscaping and Lighting Assessment District No. 2 for Fiscal Year (FY) 2023/24
(Pursuant to Landscaping and Lighting Act of 1972)
BACKGROUND
A. The Citywide Landscaping and Lighting Assessment District No. 2 (District) was established by the City Council on August 1, 1989. City Council adopted Resolution No. 89-600 thereby approving the District for all developed properties within the City of Sacramento.
B. 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 has previously levied assessments on property in the District to pay for landscaping and lighting maintenance services and related services to be provided within the District, all in accordance with the 1972 Act.
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 30, 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. City Council also set the public hearing for June 20, 2023 (Resolution No. 2023-0157). Notice of the hearing was given on June 9, 2023, in accordance with the 1972 Act.
E. The FY2023/24 assessments are adjusted by 3% from the FY2022/23 assessment amount according to the automatic annual adjustment methodology previously adopted by the City Council. Such FY2023/24 assessments are equal to the highest authorized amount for this District. A description of the proposed assessments for FY2023/24 is shown on Exhibit A attached hereto.
F. Pursuant to California Streets and Highways Code section 22631, the action presented before City Council is to confirm the diagram and budget, and levy the assessment for the District for FY2023/24.
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 are true and correct.
Section 2. The City Council finds and determines, consistent with California Streets and Highways Code section 22631, that there is not a majority protest against the proposed assessment for the District.
Section 3. The City Council confirms the annual budget for the District, as set forth in Exhibit A and as provided in the Engineer’s Annual Report for FY2023/24.
Section 4. The City Council confirms the assessment diagram and the assessment roll as referenced in the Engineer’s Annual Report and levies the assessments set forth in the Engineer’s Annual Report.
Section 5. The City Manager or the City Manager’s designee is authorized to make any necessary budgetary adjustments associated with the approval of the Engineer’s Annual Report and levy of assessments for FY2023/24.
Section 6. Exhibit A is part of this resolution.
Table of Contents:
Exhibit A – FY2023/24 Proposed District Budget & Parcel Assessments
EXHIBIT A
CITYWIDE LANDSCAPING & LIGHTING DISTRICT
PROPOSED DISTRICT BUDGET AND PARCEL ASSESSMENTS
FY2023/24
Estimated Beginning Available Fund Balance $4,663,264
Total Assessed to Property Owners $20,019,008
Total Resources $24,682,272
Street Related Operations and Maintenance $16,144,950
Park Maintenance and Graffiti Abatement $4,855,000
Administration and Billing $503,429
Total Expenditures $21,503,379
Estimated Ending Available Fund Balance $3,178,893
Year-Over-Year Change in Available Fund Balance ($1,484,372)
PROPOSED ANNUAL PARCEL ASSESSMENTS FY2023/24
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 141.95 708.74 1,476.25 40.56
With Lights: 73.23 51.29
Without Lights: 35.25 24.67
Park Facilities &
Related O&M:
Park Maintenance,
Youth Employment
Program, Graffiti
Abatement 22.71 15.45 38.84 194.18 403.89 11.09
Proposed Assessment
(rounded): $180.78 $903.92 $1,880.14 $51.66
With Lights: $95.94 $66.72
Without Lights: $57.96 $40.12
Current Year
Assessment (FY22/23): 175.52 877.60 1,825.40 50.14
With Lights: 93.14 64.78
Without Lights: 56.26 38.96
Change in assessment
with 3.00% CPI
adjustment: 5.26 26.32 54.74 1.52
With Lights: 2.80 1.94
Without Lights: 1.70 1.16