DATE: AUGUST 9, 2022
DEPARTMENT: PUBLIC WORKS DEPARTMENT
FROM: DAVID JACOBS, PW DIRECTOR
THRU: ADRIANA ROBLES, CITY ENGINEER
HILDA GARCIA, PW ADMIN SUPERVISOR
TITLE: ANNUAL LEVY OF ASSESMENTS FOR LANDSCAPE & MAINTENANCE DISTRICTS RECOMMENDED MOTION:
A motion to approve twelve (12) resolutions approving Engineer’s Reports and ordering the levy of collection of annual assessments within the landscape maintenance assessment districts.
RECOMMENDATION:
It is recommended that City Council approve resolutions:
approving the Engineer’s Report; and
ordering the annual levy and collection of assessments within the Airport Business Center Landscape Maintenance District, and the North/East Area, Harden Ranch, Vista Nueva, Mira Monte and Monte Bella Maintenance Districts.
EXECUTIVE SUMMARY:
There are six landscape maintenance assessment districts (LMAD) within the City of Salinas that were created under the Landscaping and Lighting Act of 1972 (the Act), adopted locally in the Salinas Municipal Code. The Act allows property owners to assess themselves within a specific area, or “district” in order to generate funds for continued maintenance of specific improvements within the district. Council adopted the necessary resolutions in June and set public hearings in order to approve the engineer’s reports and the levying of assessments in order to meet the assessment roll due date to the Monterey County Assessor’s Office.
BACKGROUND:
There are six landscape maintenance assessment districts (LMAD) within the City of Salinas that were created under the Landscaping and Lighting Act of 1972, and adopted locally in Article II, Chapter 21C of the Salinas Municipal Code. The Act allows property owners to assess themselves within a specified area, or “district” in order to generate funds for installing, maintaining, and servicing public lighting, landscaping, and improvements in their neighborhood.
The City renews these assessments annually. On June 21, 2022, City Council approved resolutions to initiate the annual assessment process (Resolutions No. 22401 through 22412). Public notices of the public hearings are required and were published in The Monterey Herald following the Council’s June 21st approval.
As stated in the June 21, 2022 staff report to City Council, the North/East District assessment will increase by 8.86%, the annual inflation rate based on the Engineering News-Record’s (ENR) construction cost index from April 2021 to April 2022. All other districts’ assessments will remain the same.
Below is a summary of the assessment rates for Fiscal Year 22/23. Rates do not include the $10.00 per parcel collection fee.
District
Actual FY 21/22 Rates
Proposed 22/23 Rates
Increase/
(Decrease)
Airport Business Center
$217.49
per acre
$217.49
per acre
-0-
North/East
$212.90
$127.74
$85.16
/Low Density unit
/ Medium Density unit
/ High Density unit
$231.76
$139.05
$92.70
/Low Density unit
/ Medium Density unit
/ High Density unit
8.86%
Harden Ranch
$66.72
$353.66
per unit
per acre
$66.72
$353.66
per unit
per acre
-0-
Vista Nueva
$600.00
per parcel
$600.00
per parcel
-0-
Mira Monte
$594.74
per parcel
$594.74
per parcel
-0-
Monte Bella
$802.20
per parcel
$802.20
per parcel
-0-
Local agency assessment rolls must be sent to the Assessor’s Office by August of each tax year in order for the parcel levies to be billed and collected.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.
STRATEGIC PLAN INITIATIVE:
This item relates to the Council’s Strategic Plan Goal of Infrastructure and Environmental Sustainability by improving City facilities, including lighting and landscaping.
DEPARTMENTAL COORDINATION:
Public Works Department’s Engineering and Maintenance Divisions work cooperatively to manage the Districts’ budget and oversee the Districts’ day-to-day maintenance activities. The Finance Department works closely with Public Works in obtaining and then transmitting the updated levy information to the County for processing.
FISCAL AND SUSTAINABILITY IMPACT:
Based on proposed maintenance district formulas, the total levy to be received (including the City $10.00 per parcel collection fee) in FY 2022-23 are estimated as follows:
Maintenance District
Total Levy
Airport Business Center
$ 14,468
North/East District
$ 935,738
Harden Ranch District
$ 155,164
Vista Nueva District
$ 29,890
Mira Monte District
$ 122,762
Monte Bella District
$ 719,828
The City has a long-standing financial policy to maintain an operating reserve equal to 50% of maintenance costs, however this policy is “advisory only” and meeting this level of reserves may require increases, in some cases, beyond the inflationary factor allowed by the formula previously approved. The annual amounts required by the 50% policy and the projected amounts are shown below.
Maintenance District
2022-2023 Operating Budget
Desired Reserves
Operating Reserve Fund Balance
Airport Business Center
$ 14,662
$ 7,331
$ 3,882
North/East District
$ 671,136
$ 335,568
$ 335,568
Harden Ranch District
$ 128,981
$ 64,491
$ 91,987
Vista Nueva District
$ 33,624
$ 16,812
$ 328,987
Mira Monte District
$ 149,742
$ 74,871
$ 331,742
Monte Bella District
$ 895,156
$ 447,578
$ 142,078
Airport Business Center District
In 2019 staff met with District’s property owners to gain an understanding of the most desired approach to obtaining and maintaining fiscal responsibility. The property owners, in attendance, concluded that they were interested in including the city-owned parcels along Moffett Street and changing to a different method of spreading assessments. The current formula is based entirely upon acreage and exempts government owned parcels.
Within the next year, staff intends to work with a consultant to develop a revised assessment methodology that will consider the frontage of parcels deriving benefits from the District instead of acreage. Once a revised preliminary methodology is available, staff will meet again with property owners to survey the level of support before moving forward with a balloting process.
Harden Ranch Maintenance District
Thirty years ago, at the time of the District’s formation, the assessment fee of $76.72 per year (including collection fees) was enough to cover maintenance costs. Now, due to inflation, the assessment revenue covers less than one third (approximately 32%) of the service level that was provided three decades ago.
Maintenance levels will continue to decrease as costs increase. City has initiated discussions with District property owners regarding an assessment increase in order to increase services to desired levels. Increasing the assessment fee will require a property owner ballot voting process to gain approval for the assessment increase including a built-in annual inflation adjustment so that assessment rates can maintain pace with the cost of inflation. The City expects to continue discussions with property owners as resources permit.
ATTACHMENTS:
Resolutions
Preliminary Engineer’s Reports FY22-23
Page | 3
Page | 1
CITY OF SALINASCOUNCIL STAFF REPORTCITY OF SALINASCOUNCIL STAFF REPORT
CITY OF SALINAS
COUNCIL STAFF REPORT
CITY OF SALINAS
COUNCIL STAFF REPORT