TO:Andrew P. Powers, City Manager
FROM:Clifford G. Finley, Public Works Director
DATE:May 9, 2023
SUBJECT: Landscape and Lighting Assessment District No. 79-2 FY 2023- 24 Initiating Assessments and Annexations
RECOMMENDATION:
1. Adopt resolutions to initiate assessment proceedings, declare intention to levy annual assessments, approve Preliminary Engineer’s Report, and set public hearing date of June 6, 2023, for Landscape and Lighting Assessment District No. 79-2 FY 2023-24 Assessments.
2. Adopt resolutions declaring intention to annex parcels to Lighting Assessment District No. 79-2 and approving Preliminary Annexation Engineer’s Report.
3. Approve and Authorize the City Engineer to execute the agreement with Ventura County Auditor-Controller to place Landscape and Lighting Assessment District assessments on the Secured Tax Rolls and distribute Collections to the City for $0.21 per assessment per parcel, plus administration and collection fees.
4. Find that this action is not a project as defined under the California Environmental Quality Act.
FINANCIAL IMPACT:
No Additional Funding Requested. The proposed Landscape and Lighting Assessment District (LLAD) maximum assessments for FY 2023-24 include a 5.77 percent consumer price index (CPI) inflationary adjustment as previously approved by property owners.
The proposed Landscape District assessments are less than the maximum allowed rates in some benefit zones. Assessments are proposed to be adjusted for the 39 landscaping zones (including four subzones) to restore positive fund balances and cover expenditures associated with new landscaping and increased utility costs. Proposed increases range from $2.90 per year per Equivalent Benefit Unit (EBU) up to $49.02.
LLAD No. 79-2 FY 2023-24 Initiating Assessments
May 9, 2023
6 4
5 The proposed assessments for FY 2023-24 in the Lighting District have all been adjusted by 5.77 percent, or $1.04 per year per EBU.
BACKGROUND:
The LLAD is a special assessment area within Thousand Oaks funding the maintenance of over 27,000 City Street trees, 17.5 million square feet of landscaping, graffiti removal, weed abatement, nearly 8,000 streetlights, 136 traffic signals, and 25 lighted pedestrian crossings along public streets. Property owners within the LLAD are assessed as part of their annual property taxes collected by the County of Ventura Assessor’s Office. Approximately 82 percent of all properties in Thousand Oaks are assessed for lighting, and 43 percent are assessed for landscaping (Attachment #1).
Assessments are based on a weighting factor using EBU to identify a parcel’s share of total assessments based on benefit received. A typical single-family residential property is assigned an EBU of 1.00 and all other property types are assigned EBUs proportionate to a single-family home. For example, a commercial property that contains three times the square footage and infrastructure as a typical residential home would be assigned an EBU of 3.00.
Public Works staff and the City’s assessment consultant performed the annual review of the budget and assessment structure for the LLAD’s 39 total landscape benefit zones (including four subzones) and six total lighting zones. As part of the review, staff considered costs charged directly to the zones, including labor, contracted services, water, electricity, and proposed capital projects. Distribution of other line-item costs was also evaluated, including consultant and County administrative fees, City overhead, and equipment rental. Finally, the amount of ad valorem revenues and fund balance contributions were also considered.
Assessments are levied annually in accordance with the Landscaping and Lighting Act of 1972, which requires an intent to levy the proposed assessments for the upcoming fiscal year, consideration of new annexations into the LLAD, and the setting of a Public Hearing date, which for this year will be June 6, 2023.
DISCUSSION/ANALYSIS:
The Preliminary Engineer’s Report (Attachment #2) reflects the proposed landscape and lighting budgets. A maximum CPI assessment adjustment amount of 5.77 percent is recommended to offset higher costs for maintenance of the zones. Property owners approved annual CPI increases when the District was originally formed.
LLAD No. 79-2 FY 2023-24 Initiating Assessments
May 9, 2023
6 4
5 Non-Uniform Adjustments
Landscape assessments are proposed to be adjusted in order to generate the required revenue for the special benefits received. The proposed annual landscape assessments for FY 2023-24 range from $53.48 per EBU (Zone 4), to a maximum annual assessment of $569.40 per EBU (multiple zones).
Assessments for all 39 zones (and 4 subzones) are to be adjusted by varying amounts to cover increased costs, reduce reliance on ad valorem property tax revenue, and to develop reserves for future capital improvement projects.
Ad valorem property tax revenue is part of the one percent property tax levied on Thousand Oaks properties by the County of Ventura. While assessments can only be used to cover expenditures in the zones where they are collected, ad valorem revenues can be used throughout the LLAD and in General Fund areas. To fill budgetary gaps, some zones rely heavily on ad valorem revenues to lower assessment rates. Ad valorem revenues are also distributed to zones that have landscaping that is a general benefit to the community as a whole and not just those living within the zone. The assessments pay for particular and distinct (special) benefits over and above the general benefits conferred on properties located within the district or to the public at large.
All EBUs within the lighting zones across the city pay a uniform rate. In FY 2023- 24, the lighting assessment rates are proposed to be adjusted by the approved CPI adjustment of 5.77 percent, in the amount of $1.04, for a total rate of $19.08 per EBU per year. This adjustment is necessary to cover increased maintenance costs and Southern California Edison electricity costs.
Average Assessments for LLAD 79-2
The attached FY 2023-24 Engineer’s Report contains a proposed actual assessment rate and maximum assessment rate for every zone. The actual assessment rate is the amount levied on each property within a zone and appears on the property tax bill. The maximum assessment rate is the maximum rate a property can be assessed within that zone and includes a voter-approved annual increase of three percent or CPI (whichever is greater).
Of the 39 landscaping zones, 25 are proposed to be assessed at the maximum rate. There are two zones (34 and 37A) whose previous assessments were below the maximum rate, creating the need for ongoing subsidies. Those two zones are proposed to receive up to 10 percent increases in their assessment rate to help reduce or eliminate the City subsidy. This results in an average Districtwide Landscape increase of 5.93 percent. All properties within the Lighting District will LLAD No. 79-2 FY 2023-24 Initiating Assessments
May 9, 2023
6 4
5 be assessed at the maximum rate. Average assessments per EBU for both lighting and landscaping are provided in the table below:
Average Applied Assessments for LLAD 79-2
Lighting Landscape
FY 2022-23 $ 18.04 $ 331.75
FY 2023-24 $ 19.08 $ 351.44
Change ($) $ 1.04 $ 19.69
Change (%) 5.77% 5.94%
Resolutions to Initiate Proceedings
It is recommended City Council schedule a Public Hearing for June 6, 2023. At the Public Hearing, the Engineer’s Report and resolutions will be presented for consideration and adoption. If approved, the final Engineer’s Report and resolutions would set the assessments for FY 2023-24. The resolutions attached (Attachments #3 through #5) are for initiating proceedings, declaring the intention to levy annual assessments, and approving the Preliminary Engineer’s Report for FY 2023-24.
Annexations
The following annexations are planned in the lighting zones: the Hydam Homes, LLC (2080 Hillcrest Drive) development is proposed to be annexed into the existing Lighting Assessment District, Zone E, and the Vogel Properties, Inc. (1515 Rancho Conejo Boulevard and 1489 Lawrence Drive) development is proposed to be annexed into existing Lighting Assessment District, Zone F. The Preliminary Annexation Engineer’s Report and resolutions declaring the intention to annex and approving the Preliminary Annexation Engineer’s Report are included as Attachments #6 through #8.
Agreement with Ventura County Auditor-Controller for Billing of Direct Assessments
Beginning July 1, 2015, the Ventura County Auditor-Controller has required an annual agreement for the billing of direct assessments for non-County supervised Districts (Attachment #9). Staff recommends approving the agreement with the County of Ventura for the placement of the LLAD direct assessments on the Secured Tax Rolls and distribution of collections to the City. The cost is $0.21 per assessment per parcel, $27.00 per correction or removal, and collection fees are not to exceed one-fourth of one percent of amounts collected by the County on behalf of the City.
LLAD No. 79-2 FY 2023-24 Initiating Assessments
May 9, 2023
6 4
5 The LLAD has for many years provided an integral part of the City’s ability to provide excellent infrastructure and maintenance service to our citizens, and aligns with City Council’s Top Ten Priorities #9, “Public Works Infrastructure Investments.”
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goals:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
F. Provide and enhance essential infrastructure to ensure that the goals and policies of the Thousand Oaks General Plan are carried out and the City retains its role and reputation as a leader in protecting the environment and preserving limited natural resources.
PREPARED BY: Jim Taylor, Sr. Civil Engineer
Ryan Roman, Sr. Financial Analyst
Attachments:
Attachment #1 – Overview of LLAD 79-2
Attachment #2 – Preliminary Engineer’s Report
Attachment #3 – Resolution Initiating Proceedings
Attachment #4 – Resolution Declaring Intention to Levy Annual Assessment
Attachment #5 – Resolution Confirming Preliminary Engineer’s Report Attachment #6 – Preliminary Annexation Engineer’s Report Attachment #7 – Resolution Declaring Intention to Annex into LLAD 79-2 Attachment #8 – Resolution Confirming Preliminary Annexation Engineer’s Report
Attachment #9 – Agreement with Ventura County Auditor Controller DPW: 830-40\jt\ev\H:\Council\2023\050923\ LLAD 79-2 Initiate Proceedings staff report.docx