City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-00847 5/28/2024 Public Hearing Item 10.
Neighborhood Landscaping District Fiscal Year (FY) 2024/25 Annual Assessments [Noticed 5/17/2024]
File ID: 2024-00847
Location: District 1, Represented by Councilmember Kaplan; District 2, Represented by Councilmember Thao; District 5, Represented by Vice Mayor Maple; District 6, Represented by Councilmember Guerra and Mayor Steinberg; District 7, Represented by Councilmember Jennings; and District 8, Represented by Councilmember 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 FY2024/25 for the Neighborhood Landscaping District (District).
Contact: Eric Frederick, Special Districts Manager, (916) 808-5129, [email protected]; Department of Finance
Presenter: Eric Frederick, Special Districts Manager, (916) 808-5129, [email protected], Department of Finance
Attachments:
1-Description/Analysis
2-Background
3-Schedule of Proceedings
4-Resolution
5-Exhibit A (District Map)
6-Exhibit B (FY2024/25 Subdivision Budgets & Parcel Assessments) Additional 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: 2024-00847 5/28/2024 Public Hearing Item 10.
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 7, 2024 (Resolution No. 2024- 0137). 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 FY2024/25. 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 $351,473 for FY2024/25 in support of a projected operating budget of $370,417, with the difference being paid from available fund balance. This equates to a weighted average proposed assessment of $117.11 per single family parcel, which is an increase of $3.82 or 3.37% over the weighted average actual assessment levied in FY2023/24. The assessments and the method by which they were derived are detailed in the 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 FY2024/25 maximum authorized amounts. As discussed in more detail in the Background section of
File ID: 2024-00847 5/28/2024 Public Hearing Item 10.
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 FY2024/25 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 two subdivisions will end FY2023/24 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 FY2024/25 Proposed Budget reflects a plan to continue to balance the budget of those two 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 3% in four of these subdivisions and cannot exceed 4% in the other 14 subdivisions. For FY2024/25, the change in the prior year annual average CPI was 3.67%.
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 3.67%. 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 FY2024/25 is projected to be $351,473.
ATTACHMENT 3
SCHEDULE OF PROCEEDINGS
NEIGHBORHOOD LANDSCAPING DISTRICT
FY2024/25 SCHEDULE
March 26, 2024 Council Directed Filing of Engineer’s Report
May 7, 2024 Council Approved Engineer’s Annual Report, Adopted Resolution of Intention and Set Date for Public Hearing
May 17, 2024 Notice of Public Hearing Published
May 28, 2024 Hold Public Hearing
Council Approves District Budget & Orders Annual Levy of Assessments
August 2024 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 2024/25 (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 26, 2024, 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. 2024-0081).
D. On May 7, 2024, 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 FY2024/25, and set a public hearing for May 28, 2024 (Resolution No. 2024-0137). Notice of the hearing was given on May 17, 2024, 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 FY2024/25 according to the annual increase methodology previously adopted by the City Council. In 18 of the subdivisions, the proposed assessments for FY2024/25 are higher than the actual assessments levied in FY2023/24, 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 FY2024/25.
Section 5. Exhibits A and B are part of this resolution.
Table of Contents:
Exhibit A – District Map
Exhibit B – FY2024/25 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 FY2024/25
The annual budget for each individual subdivision is as follows:
FY2024/25
Expenditures
66th Street Subdivision 554 5,100 5,654 0 Arlington Pk #1 751 5,628 4,769 1,610 Arlington Pk Creekside #2 1,184 20,140 20,140 1,184 Arlington Pk Creekside #3 475 7,200 6,809 866 Arlington Pk Creekside #4 (163) 7,735 7,362 210 Brookfield Meadows #2 10,091 15,180 16,100 9,171 Cameron 5 1,262 8,221 7,660 1,823 Carriage Estates 15,072 8,596 10,876 12,792 Chardonnay 421 3,686 3,686 421 Colony Brookfield 9,539 14,060 16,120 7,479 Del Paso Nuevo (Units 1 and 3) 4,017 18,438 22,455 0 East Land Park Village 6,081 26,892 32,973 0 Elder Place 10,058 7,140 8,911 8,287 Evergreen Phase I 11,873 - - 11,873 Jacinto Village #3 3,983 4,874 1,204 7,653 Jones Ranch 11,861 5,855 7,777 9,939 Kelton 5,057 8,848 8,416 5,489 Laguna Parkway 5,984 20,040 23,230 2,794 Laguna Vega 4,741 17,056 16,809 4,988 Laguna Verde 15,424 12,731 14,245 13,910 Laguna Verde 2 580 7,669 7,815 434 Laguna Vista (2,626) 9,504 9,504 (2,626) Liberty Lane 4,718 10,840 11,336 4,222 Newport Cove 14,084 7,977 10,359 11,702 Regency Place 7,154 9,047 9,616 6,585 Shasta Meadows 1,646 7,760 8,696 710 Sheldon Farms 448 14,937 12,553 2,832 Sheldon Whitehouse 3,915 13,229 13,858 3,286 Stonewood 9,520 8,268 8,877 8,911 Sunrise 94 2,238 5,458 5,458 2,238 Villa Palazzo 513 8,400 8,513 400 Wickford Square 2,219 17,914 15,908 4,225 Windemere Estates 3,352 9,500 9,382 3,470 Zorba Court 1,604 3,550 3,350 1,804 Total 167,630 351,473 370,417 148,686
Subdivision
FY2024/25
Estimated
Beginning Fund
Balance
FY2024/25
Assessments
FY2024/25
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 19 246.00 299.91 268.42 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 55 267.96 276.00 276.00 Cameron 5 26 305.02 316.21 316.16 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) 79 213.88 233.39 233.38 East Land Park Village 90 288.22 298.80 298.80 Elder Place 14 485.70 596.33 510.00 Evergreen Phase I ** 60 - 146.12 - Jacinto Village #3 29 162.08 168.06 168.04 Jones Ranch 23 235.72 352.73 254.58 Kelton 146 60.60 60.60 60.60 Laguna Parkway 318 63.02 63.02 63.02 Laguna Vega 270 60.74 74.69 63.16 Laguna Verde 128 99.46 99.46 99.46 Laguna Verde 2 43 178.34 178.34 178.34 Laguna Vista 72 120.00 170.70 132.00 Liberty Lane 74 127.38 236.67 146.48 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 22 340.26 352.73 352.72 Sheldon Farms 103 131.84 179.26 145.02 Sheldon Whitehouse 163 78.80 81.16 81.16 Stonewood 261 31.68 31.68 31.68 Sunrise 94 19 277.10 287.28 287.26 Villa Palazzo 80 93.56 105.00 105.00 Wickford Square 103 167.76 173.92 173.92 Windemere Estates 50 190.00 190.00 190.00 Zorba Court 9 382.88 394.43 394.44 Actual
Assessment
FY2023/24
Proposed
Actual
FY2024/25Subdivision # of Lots
Maximum
Authorized in
FY2024/25