City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-00955 5/28/2024 Public Hearing Item 11.
Power Inn Road Maintenance District - Public Hearing [Noticed on 5/17/2024] File ID: 2024-00955
Location: District 6, Represented by Councilmember Guerra Recommendation: Conduct a public hearing and upon conclusion: 1) Adopt a Resolution confirming the assessment diagram and assessment roll set forth in the Engineer’s Annual Report and levying the assessment for Fiscal Year (FY) 2024/25 for the Power Inn Road Maintenance District No. 2003-01.
Contact: Sini Makasini, Senior Development Project Manager, (916) 808-7967, [email protected], Eric Frederick, Special Districts Manager, (916) 808-5129, [email protected]; Department of Finance
Presenter: Sini Makasini, Senior Development Project Manager, (916) 808-7967, [email protected], Department of Finance
Attachments:
1-Description/Analysis
2-Schedule of Proceedings
3-Resolution
4-Exhibit A - District Boundary Map
5-Exhibit B - FY2024/25 District Budget & Parcel Assessment Additional Description/Analysis
Issue Detail: On July 29, 2003, Council approved formation of the Power Inn Road Maintenance District No. 2003-01 (District) under the California Landscaping and Lighting Act of 1972 (California Streets and Highways Code § 22500 et. seq.), called the “1972 Act.” The District provides funding for the maintenance of the landscaped corridor located along the frontage of lots adjacent to Power Inn Road between 14
th Avenue and the Regional Transit overcrossing located just south of Folsom Boulevard (see Exhibit A to the Resolution for a map of the District). The landscaped corridor is designated as the area between the separated sidewalk and the curb and gutter.
On May 7, 2024, Council adopted Resolution No. 2024-0138 approving the Engineer’s Annual Report and declaring its intention to levy assessments for the District. Approval of the attached Resolution will authorize the City to levy assessments to provide partial funding for maintenance of the
File ID: 2024-00955 5/28/2024 Public Hearing Item 11.
will authorize the City to levy assessments to provide partial funding for maintenance of the landscaped areas adjacent to the parcels within the District for FY2024/25.
The District funds only a portion of the total cost of providing landscape maintenance services to the District. The Engineer’s Annual Report separates the benefits of the District between “special benefits” to the assessed parcels and “general benefits” that do not directly benefit those assessed parcels. Only special benefits can be funded by District assessments. Analysis of the District amenities shows that assessed parcels in the District receive 74.25% of the benefit from the improvements as a direct benefit. This percentage is the special benefit provided by the District. The remaining amount must be funded from other sources. The funding sources and budget for the District are detailed in the Financial Considerations section below and on Exhibit B to the Resolution.
Policy Considerations: The actions in the recommended Resolution are required by the 1972 Act 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 governmental 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: Not applicable.
Rationale for Recommendation: The recommended action supports funding for landscape maintenance services in the District via property-based assessments.
Financial Considerations: The total estimated expense budget for the District in FY2024/25 is $17,389 as shown in Exhibit B and detailed in the Engineer’s Annual Report on file with the Infrastructure Finance Division of the Department of Finance. Pursuant to the Engineer’s Annual Report, $13,012 of assessment revenue can be used to fund special benefits. The remaining portion of the maintenance, utilities, and administrative costs, attributed to general benefit and detailed in Exhibit B, will be provided by the operating budgets of the Department of Public Works, Streets Division and the Department of Finance, Infrastructure Finance Division.
File ID: 2024-00955 5/28/2024 Public Hearing Item 11.
Pursuant to previous Council action authorizing automatic annual increases to the District’s maximum authorized assessment amount (Resolution No. 2003-356), the maximum authorized assessment amount for the District is automatically increased for FY2024/25 by 3.67% based on an increase to the 2024 Consumer Price Index-San Francisco Area (All Urban Consumers). The proposed assessment for FY2024/25 of $3.27 per linear foot of frontage is a 3.67% increase from the FY2023/24 assessment of $3.16 per linear foot of frontage. The proposed FY2024/25 assessment is the maximum allowed assessment for FY2024/25. The proposed increase is necessary to maintain service levels and adequate reserves to cover extraordinary maintenance.
Local Business Enterprise (LBE): Not applicable.
Attachment 2
SCHEDULE OF PROCEEDINGS
POWER INN ROAD MAINTENANCE DISTRICT
FY2024/25
March 26, 2024 Council – Direct Filing of Engineer’s Report
May 7, 2024 Council – Approval of Engineer’s Annual Report and Resolution of Intention and Set Date for Public Hearing
May 17, 2024 Publish Notice of Public Hearing
May 28, 2024 Council – Public Hearing, Council Orders Annual Levy
August 2024 Assessments to County for Placement on Tax Roll
RESOLUTION NO.
Adopted by the Sacramento City Council
RESOLUTION CONFIRMING ASSESSMENT DIAGRAM AND ASSESSMENT,
AND LEVYING ASSESSMENT FOR THE POWER INN ROAD MAINTENANCE DISTRICT NO. 2003-01 FOR FISCAL YEAR 2024/25
BACKGROUND
A. The Power Inn Road Maintenance District No. 2003-01 (District), as depicted in Exhibit A, was established by the City Council and approved by the property owners on July 29, 2003.
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 has previously levied assessments on property in the District to pay for landscaping maintenance services and related services within the District, all in accordance with the 1972 Act.
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 for Fiscal Year (FY) 2024/25 in accordance with the provisions of the 1972 Act (Resolution No. 2024- 0081).
D. The Engineer’s Annual Report includes an analysis that quantifies the amount of special benefit derived from District activities by the parcels paying the assessment.
The result of the analysis is that 74.25% of the maintenance, utilities, and administrative services provided in the District are a special benefit to the parcels within the District and 25.75% of the services are a general benefit that do not directly benefit the assessed parcels. Pursuant to state law, the City can only collect assessments to the extent improvements provide special benefits to assessed parcels and must utilize other sources of funding to provide the general benefit portion. A detailed budget is shown in Exhibit B.
E. The Engineer of Work filed the Annual Report on May 7, 2024, and City Council adopted Resolution No. 2024-0138 approving the Engineer’s Annual Report, declaring its intention to levy and collect assessments within the District for FY2024/25, and setting a public hearing for May 28, 2024. Notice of the public hearing was given on May 17, 2024, in accordance with the 1972 Act.
F. The maximum authorized assessment amount for the District is automatically increased for FY 2024/25 by 3.67% based on an increase to the 2024 Consumer Price Index-San Francisco Area (All Urban Consumers). The proposed actual
assessment for FY2024/25 will be increased to the maximum authorized assessment amount for FY2024/25 of $3.27 per linear foot of frontage, in order to maintain service levels and adequate reserves to cover extraordinary maintenance.
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 F are true and correct.
Section 2 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 assessment set forth in the Engineer’s Annual Report.
Section 3 The City Manager or the City Manager’s designee is hereby authorized to make any necessary budgetary adjustments associated with the approval of the Engineer’s Annual Report for FY2024/25.
Section 4 Exhibits A and B are part of this resolution.
Table of Contents:
Exhibit A: District Boundary Map
Exhibit B: FY2024/25 District Budget & Parcel Assessment Exhibit A
Exhibit B
POWER INN ROAD MAINTENANCE DISTRICT NO. 2003-01
DISTRICT BUDGET
FUND 2201
FY2024/25
Special
Benefit
Fund
2201
General
Benefit
Contribution
District
Total
Special and General Benefit
Split Respectively 74.25% 25.75%
Estimated Beginning Fund
Balance
4,463
Total Assessed to Property
Owners
15,024
Total Resources $19,487 $4,478 $23,965
Maintenance & Utilities 11,732 4,069 15,800
Administrative Costs
Infrastructure Finance
Administration 334 116 450
Accounting
Administration 815 283 1,098
County Billing 30 11 41
Total Expenditures $12,911 $4,478 $17,389
Estimated Ending Fund Balance 6,576
Year-Over-Year Change in Fund
Balance 2,113
PARCEL ASSESSMENT
The annual maintenance cost for each property owner is based on the linear footage of their property’s street frontage multiplied by the following cost per foot.
Name
FY 2024/25
Maximum
Authorized
Amount
FY2023/24
Cost Per Foot
FY2024/25
Cost Per
Foot
Power Inn Road Maintenance District $3.27 $3.16 $3.27
Every fiscal year the maximum authorized assessment may increase by the 2024 Consumer Price Index-San Francisco Area (All Urban Consumers), or by 4% per year, whichever is less. The maximum authorized assessment amount for the District has been automatically increased for FY 2024/25 by 3.67% based on an increase to the 2024 CPI index.