Attachment F
Staff Report: June 18, 2024
Victorville Item Number: {{item.number}}
CAL
City Council / Board of Directors
Written Communications
Meeting of: June 18, 2024
Submitted By:
Fredy Bonilla, City Engineer
Subject:
Annual Confirmation of Maintenance Assessment Districts for Fiscal Year 2024/2025 Recommendation:
That the Honorable City Council:
(1) Approve Resolution Nos. 24-058, 24-061, 24-064, and 24-067 authorizing the initiation of proceedings for the annual levy of assessments for the Maintenance Assessment Districts, Drainage Facilities Assessments Districts, Landscaping Maintenance Assessment Districts, and the City-Wide Streetlight Assessment District for Fiscal Year 2024/2025;
(2) Approve Resolution Nos. 24-059, 24-062, 24-065, and 24-068 preliminarily approving the consolidated Engineer's Reports filed in support of the levy of assessments for Fiscal Year 2024/2025; and
(3) Approve Resolutions Nos. 24-060, 24-063, 24-066, and 24-069 declaring its intention to levy the maintenance assessment districts for Fiscal Year 2024/2025 and setting a Public Hearing date of July 16, 2024.
Fiscal Impact:
The recommended approvals will not result in a fiscal impact. Additional appropriations are not required. The planned expenses have been included in the Fiscal Year 2024/2025 approved budget. The table shown below shows the budget account codes and revenue amounts budgeted for each assessment district:
District Budget Account No. Revenue Budget Amt.
LMAD 1 3705501-40180 $175,959
LMAD 2 3705502-40180 $278,458
LMAD 3 3705503-40180 $175,462
LMAD 4 3705504-40180 $2,955
LMAD 5 3705505-40180 $158,845
LMAD 6 3705506-40180 $877,784
LMAD 7 3705507-40180 $28,846
LMAD 8 3705508-40180 $111,261
DFAD 1 3705530-40180 $395,288
DFAD 2 3705531-40180 $76,808
DFAD 3 3705532-40180 $86,905
MAD 1 3705550-40180 $89,268
MAD 2 3705551-40180 $64,498
SLAD 2004501-40180 $1,445,000
MAD 3 was established in 2020 and is currently undeveloped. As such, it was not oudgeted in the Fiscal Year 2024/2025 proposed budget. The projected revenue amounts above are based on the actual amounts that have been collected in the previous years.
Strategic Plan Goal:
This item aligns with Goal A "Financial Sustainability" and Goal E "Invest in Infrastructure" in the City of Victorville Strategic Plan 2023-2026. Annual assessment revenue supports the expenses for operations, maintenance, and improvement of associated landscaping, parks, and infrastructure.
Background:
In 1987, the City Council established the first Landscape Maintenance Assessment District (LMAD) to fund the perpetual maintenance of the landscaped areas along major and secondary arterial roadways adjacent to housing developments. In 2003, the City Council established the first Drainage Facilities Assessment District (DFAD) to fund the perpetual maintenance of drainage basins and channels in housing developments. In 2006, the City Council established the first Maintenance Assessment District (MAD) to fund the perpetual maintenance of parks within housing developments. In July of 2013, the City-Wide Street Lighting Assessment District (SLAD) was established to provide a supplemental funding source for the perpetual maintenance of the City's street lighting, safety lighting, and traffic signal lighting systems and facilities. All of these Assessment Districts were formed under the Landscape and Lighting Act of 1972, Section 22605 of the Streets and Highways Code, Section 22500 et seq. as per the requirements set forth in Proposition 218. Per Section 22624, the Council is first asked to initiate proceedings and order the Engineer's Reports, preliminarily approve the Engineer's Reports, and declare intent to levy and set the Public Hearing date. This procedure allows the public to review the Engineer's Reports and staff to make any needed changes or corrections. The final Engineer's Reports are presented at a subsequent Public Hearing meeting.
Discussion:
Currently, the City has a total of 15 assessment districts: eight LMADs, three DFADs, three MADs, and one City-Wide SLAD. The Landscape and Lighting Act of 1972 requires an annual confirmation of the assessments to be applied for each parcel within the assessment districts, along with an Engineer's Report. The Engineer's Report for each assessment district describes the following: improvements that are maintained; services provided for maintenance and operations; estimated annual expenses; properties assessed in the district; the method of apportionment of the assessment; the calculated assessment per benefit unit; and estimated assessment revenues.
The chart below lists each assessment district, the assessment amount per benefit unit, year the assessment district was formed, whether a cost inflator is allowed and, if so, the recommended increase for Fiscal Year 2024/2025.
Type No. Assessment Year Cost Increase
Per Benefit Formed Inflator
Allowed?
LMAD 1 $28.14 1987 No 0%
LMAD 2 $147.33 1989 No
LMAD 3 $69.38 1990 No
LMAD 4 $1.64 1997 No
LMAD 5 $141.84 2002 Yes
LMAD 6 $144.70 2003 Yes 0%
LMAD 7 $105.45 2005 Yes 0%
LMAD 8 $165.32 2005 Yes 0%
DFAD 1 $216.46 2003 Yes 0%
DFAD 2 $69.63 2003 Yes 0%
DFAD 3 $128.86 2006 Yes 0%
MAD 1 $173.00 2006 Yes 0%
MAD 2 $252.58 2006 Yes 0%
MAD 3 TBD 2020 Yes 0%
SLAD City-Wide $22.38 2013 Yes 15%
A cost escalation of the assessment rate is allowed for cost increases of electric power, administrative costs, and inflation on cost of living. This fiscal year, a 15% increase of the assessment rate for SLAD and no increases are recommended for LMADs 5-8, DFADs 1-3 and MADs 1-3 as those districts have adequate cash balances in their corresponding funds. The Engineer's Reports include more details regarding the number of parcels and how the rates are applied. hese reports can be revised, It needed, to be consistent with the final FY 2024/2025 budget revenues and expenses. The final reports will be presented during the scheduled Public Hearing. If the attached resolutions are approved, the Public Hearing will be held on July 16, 2024.
Therefore, staff recommends that the City Council:
(1) Approve Resolution Nos. 24-058, 24-061, 24-064, and 24-067 authorizing the initiation of proceedings for the annual levy of assessments for the Drainage Facilities Assessments Districts, Landscaping Maintenance Assessment Districts, Maintenance Assessment Districts, and the City-Wide Streetlight Assessment District for Fiscal Year 2024/2025.
(2) Approve Resolution Nos. 24-059, 24-062, 24-065, and 24-068 preliminarily approving the consolidated Engineer's Reports filed in support of the levy of assessments for Fiscal Year 2024/2025; and
(3) Approve Resolutions Nos. 24-060, 24-063, 24-066, and 24-069 declaring its intention to levy the maintenance assessment districts for Fiscal Year 2024/2025 and setting a Public Hearing date of July 16, 2024.
Staff remains available for any questions the Council may have.
Attachments: A. Maintenance Assessment Districts Maps
B. Engineer's Reports
C. Resolution No. 24-058
D. Resolution No. 24-059
E. Resolution No. 24-060
F. Resolution No. 24-061
G. Resolution No. 24-062
H. Resolution No. 24-063
I. Resolution No. 24-064
J. Resolution No. 24-065
K. Resolution No. 24-066
L. Resolution No. 24-067
M. Resolution No. 24-068
N. Resolution No. 24-069