City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-00848 6/18/2024 Public Hearing Item 30.
Citywide Landscaping & Lighting Assessment District (FY) 2024/25 Annual Proceedings [Noticed 06/07/2024]
File ID: 2024-00848
Location: Citywide.
Recommendation: Conduct a public hearing and upon conclusion, adopt a Resolution confirming the budget and assessment diagram, and levying the assessment for FY2024/25 for the Citywide Landscaping and Lighting 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-Proposed FY2024/25 District Budget
5-Resolution
6-Exhibit A (FY2024/25 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.
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 28, 2024 (Resolution No.
File ID: 2024-00848 6/18/2024 Public Hearing Item 30.
2024-0176). 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 FY2024/25.
Additional information on this District is provided in the Background section of this report and the proposed FY2024/25 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: None.
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 FY2024/25 District expenditure budget totals $21,283,550, a decrease of $219,830 from the approved FY2023/24 District expenditure budget. This decrease is the result of lowering amounts budgeted for certain capital projects from FY2023/24 levels that were only supported from utilizing available fund balance.
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 FY2024/25,
File ID: 2024-00848 6/18/2024 Public Hearing Item 30.
the change in the April 2023 and April 2024 CPI was 3.77%, and therefore the proposed increase in the FY2024/25 assessment by land use category is 3%. This equates to a maximum increase of $2.88 for a single-family residential parcel and $56.44 for a commercial parcel for FY2024/25 and is necessary to maintain service levels. The FY2024/25 assessments are equal to the highest authorized amount for the District. Based on this increase, the total FY2024/25 assessment revenue is projected to be $20,770,012.
The $513,538 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
FY2024/25 SCHEDULE OF PROCEEDINGS
CITYWIDE LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT
March 26, 2024 Council Directed Filing of Engineer’s Annual Report
May 28, 2024 Council Approved Engineer’s Annual Report, Adopted Resolution of Intention, and Set Date for Public Hearing
June 7, 2024 Published Notice of Public Hearing
June 18, 2024 Council Holds Public Hearing and Orders Annual Levy
August 2024 Assessments to County for Placement on Tax Roll ATTACHMENT 4
PROPOSED FY2024/25 BUDGET FOR FUND 2232
CITYWIDE LANDSCAPING AND LIGHTING DISTRICT
With 3% CPI adjustment in assessments
Assessment Category
Approved
FY2023/24
Proposed
FY2024/25
Street Related Operations & Maintenance:
Safety Lighting & Medians $2,930,000 $3,018,000
Neighborhood Street Lighting Maintenance 6,391,200 5,800,000 Street Tree Maintenance 6,823,750 6,942,588
Administration & Billing 387,041 394,988
Subtotal Street Related O&M $16,531,991 $16,155,576
On-Going Park Maintenance:
Park Maintenance & Improvements $4,600,000 $4,740,000
Graffiti Abatement 255,000 262,600
Administration & Billing 116,388 125,374
Subtotal On-Going Park Maintenance: $4,971,388 $5,127,974
TOTAL DISTRICT BUDGET $21,503,379 $21,283,550
Fund Balance Offset (1,484,372) (513,538)
TOTAL ASSESSED TO PROPERTY
OWNERS: $20,019,008 $20,770,012
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) 2024/25
(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 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 28, 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. The City Council also set the public hearing for June 18, 2024 (Resolution No. 2024-0176). Notice of the hearing was given on June 7, 2024, in accordance with the 1972 Act.
E. The FY2024/25 assessments are adjusted by 3% from the FY2023/24 assessment amount according to the automatic annual adjustment methodology previously adopted by the City Council. Such FY2024/25 assessments are equal to the highest authorized amount for this District. A description of the proposed assessments for FY2024/25 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 FY2024/25.
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 FY2024/25.
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 FY2024/25.
Section 6. Exhibit A is part of this resolution.
Table of Contents:
Exhibit A – FY2024/25 District Budget & Parcel Assessments
EXHIBIT A
CITYWIDE LANDSCAPING & LIGHTING DISTRICT
PROPOSED DISTRICT BUDGET AND PARCEL ASSESSMENTS
FY2024/25
Estimated Beginning Available Fund Balance $4,231,048
Total Assessed to Property Owners $20,770,012
Total Resources $25,001,060
Street Related Operations and Maintenance $15,760,588
Park Maintenance and Graffiti Abatement $5,002,600
Administration and Billing $520,362
Total Expenditures $21,283,550
Estimated Ending Available Fund Balance $3,717,510
Year-Over-Year Change in Available Fund Balance ($513,538)
PROPOSED ANNUAL PARCEL ASSESSMENTS FY2024/25
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 146.21 731.04 1,520.54 41.77
With Lights: 75.43 52.80
Without Lights: 36.31 25.41
Park Facilities &
Related O&M:
Park Maintenance,
Youth Employment
Program, Graffiti
Abatement 23.39 15.92 40.00 200.02 416.04 11.43
Proposed Assessment
(rounded): $186.22 $931.06 $1,936.58 $53.20
With Lights: $98.82 $68.72
Without Lights: $59.70 $41.34
Current Year
Assessment (FY23/24): 180.78 903.92 1,880.14 51.66
With Lights: 95.94 66.72
Without Lights: 57.96 40.12
Change in assessment
with 3.00% CPI
adjustment: 5.44 27.14 56.44 1.54
With Lights: 2.88 2.00
Without Lights: 1.74 1.22