cc 2023 AR 05/09 levy of lmd bad assesments for fye 2024 set ph date

ACTION:
____________________________
Clerk/Secretary
Department: Finance Item No: D2
Prepared by: Lori Ruiz, Senior Accountant Meeting Date: May 9, 2023 Approved by:

Mike Sylvia, Director/Treasurer
John Conley, City Manager Agenda Location: Discussion
SUBJECT: ENGINEER’S REPORTS FOR FISCAL YEAR 2023/24 LEVY OF ASSESSMENTS AND

FISCAL STATUS UPDATE
RECOMMENDATION: Adopt the following City Council Resolutions, approving of the Fiscal Year 2023/24 Engineer’s Reports for the following assessment districts:

1.Resolution No. 2023- , approving an Engineer’s Report on the City of Vista Landscape and Lighting District No. 1 assessments for the 2023/24 Fiscal Year, declaring its intent to levy and collect assessments, and setting the date for public hearing;

2.Resolution No. 2023- , approving an Engineer’s Report and determining the cost of services and the amount of assessment to be imposed on all assessable property within the City of Vista Street Maintenance District No. 1 for Fiscal Year 2023/24 pursuant to the Benefit Assessment Act of 1982 and setting the date for public hearing;

3.Resolution No. 2023- , approving an Engineer’s Report on the City of Vista South Melrose Landscape Maintenance District assessments for the 2023/24 Fiscal Year, declaring its intent to levy and collect assessments and setting the date for public hearing; and

4.Direct Staff to do one of the following beginning in FY 2024/25: 1) work with the City’s Assessment Engineering Consultant for the formation of one or more Overlay Districts to provide a long-term, sustainable funding solution; 2) authorize increased General Fund subsidies as needed to augment assessment revenue to match estimated expenditures; or 3) reduce the level of service and expenditures to match estimated assessment revenue.

CORRELATION TO CITY COUNCIL GOALS: Fiscal Responsibility.

PRIOR ACTION: On March 28, 2023, adopted City Council Resolutions No. 2023-38, ordering than an Engineer prepare a report of the assessments to be levied for the maintenance of improvements of the City of Vista Landscaping and Lighting District No. 1; adopted City Council Resolution No. 2023-39, ordering that an Engineer prepare a report of the assessments to be levied for the maintenance of improvements of City of Vista Street Maintenance District No. 1; and adopted City Council Resolution No. 2023-40, ordering that an Engineer prepare a report of the assessments of the South Melrose Landscape Maintenance District (Vote: 5-0).

AGENDA
REPORT

CITY COUNCIL

COMMUNITY DEVELOPMENT COMMISSION

SUCCESSOR AGENCY

BUENA SANITATION DISTRICT

JOINT POWERS FINANCING AUTHORITY
05/09/2023 D2 Page 1 of 20
Approved above recommendation, adopted the following: 1) City Council Resolution No. 2023-71; 2) City Council Resolution No. 2023-72; 3) City Council Resolution No. 2023-73; and 4) work with the City’s Assessment Engineering Consultant for the formation of one or more Overlay Districts to provide a long-term, sustainable funding solution.

Vote: 4-0 (Green absent)

MEETING DATE: May 9, 2023 PAGE 2
SUBJECT: ENGINEER'S REPORTS FOR FISCAL YEAR 2023/24 LEVY OF ASSESSMENTS STATEMENT ON THE SUBJECT: The City has three assessment districts that require the annual preparation of Engineer's Reports. An Engineer's Report has been prepared that estimates expenditures and determines the assessment amounts for each parcel within the districts. Staff recommends the City Council receive and approve the Engineer's Report for each district, declare the intent to levy and collect assessments, and set a public hearing date of June 13, 2023, to receive public comment. These proceedings relate to the Fiscal Year (FY) beginning July 1, 2023, and ending June 30, 2024.

City of Vista Landscaping and Lighting District No. 1. The City of Vista Landscape and Lighting District No. 1 was formed to provide funds for the operation and maintenance of the streetlights, traffic signals, and public landscaping systems throughout the City. All parcels within the City boundary benefit from these services. The annual assessment rate(s) are based on use and size of the property. For a typical single- family dwelling, with a parcel area of less than 0.45 acres, the basic annual assessment rate is $13.51, which consists of$5.62 for street lighting, $3.88 for traffic signals, and $4.01 for landscaping. Properties that receive a greater benefit pay a higher annual assessment. For FY 2023/24, the assessment rates will not increase from the prior year. In order to continue providing the current level of services during FY 2023/24, it is estimated this district will be subsidized by the General Fund in the amount of$233,806.

Historically, the District revenues have been consistently less than the expenses. Exhibit 11 further explains the details behind the District fund balance changes since 2018.

The Engineer's Report is attached as Exhibit 4, and a map of the district is attached as Exhibit 5.

City of Vista Street Maintenance District No. 1. The Street Maintenance District No. 1 was formed to assist in providing for street maintenance and street sweeping services throughout the City. All parcels within the City boundary benefit from these services and are grouped into zones based on their level of service. The annual assessment rate per zone for FY 2023/24 for a typical single-family residence is as follows:
• Zone 1 (no street sweeping) - $3.72
• Zone 2 (street sweeping 2 days per month) - $11.10 • Zone 3 (street sweeping 4 days per month) - $18.48 • Zone 4 (street sweeping 8 days per month) - $33.24 These rates are the maximum amounts that can be assessed. For FY 2023/24 the assessment rates will not increase from the prior year. Historically, the District revenues have been less than the expenses.

Exhibit 11 further explains the details behind the District fund balance changes since 2018.

The Engineer's Report is attached as Exhibit 6, and a map of the district is attached as Exhibit 7.

South Melrose Landscape Maintenance District. The South Melrose Drive Landscape Maintenance District was formed in 1989 to finance maintenance for the medians, parkways, and slopes along South Melrose Drive, Sycamore Drive, and certain areas of connecting streets. The District encompasses only those properties that receive direct benefit from the maintenance. There are five benefit zones within the District, which are determined based on specific maintenance requirements within each zone.

The maximum amounts were established at the time the District was formed. These maximum amounts were further restricted, as shown below for each zone, to the amount of assessment that was in place when Proposition 218 was passed in 1996. The nature of the expenses incurred for each zone has changed over the years since the inception of the District. Analysis of the proposed FY 2023/24 budget for the District has indicated that the rate per zone to be assessed for FY 2023/24 should be as follows:
• Zone 1: The Fiscal Year 2023/24 maximum assessment rate is $105.31 per Equivalent Dwelling Unit (EDU), as allowed under the provisions of Proposition 218. The actual assessment rate applied in 05/09/2023 D2 Page 2 of 20

MEETING DATE: May 9, 2023 PAGE 3
SUBJECT: ENGINEER'S REPORTS FOR FISCAL YEAR 2023/24 LEVY OF ASSESSMENTS Fiscal Year 2023/24 is $86.46 per EDU. This applied rate allows for coverage of all budgeted expenses within Zone 1.
• Zone 2: The Fiscal Year 2023/24 maximum assessment rate is $118.15 per Equivalent Dwelling Unit (EDU), as allowed under the provisions of Proposition 218. The actual assessment rate applied in Fiscal Year 2023/24 is $97.00 per EDU. This applied rate allows for coverage of all budgeted expenses within Zone 2.
• Zone 3: The Fiscal Year 2023/24 maximum assessment rate is $31.80 per Equivalent Dwelling Unit (EDU), as allowed under the provisions of Proposition 218. The actual assessment rate applied in Fiscal Year 2023/24 is $26.11 per EDU. This applied rate allows for coverage of all budgeted expenses within Zone 3.
• Zone 4: The Fiscal Year 2023/24 maximum assessment rate is $35.17 per Equivalent Dwelling Unit (EDU), as allowed under the provisions of Proposition 218. The actual assessment rate applied in Fiscal Year 2023/24 is $28.88 per EDU. This applied rate allows for coverage of all budgeted expenses within Zone 4.
• Zone 5: The Fiscal Year 2023/24 maximum assessment rate is $3.35 per Equivalent Dwelling Unit (EDU), as allowed under the provisions of Proposition 218. The actual assessment rate applied in Fiscal Year 2023/24 is $2.75 per EDU. This applied rate allows for coverage of all budgeted expenses within Zone 5.

Historically, the District revenues have been less than the expenses. Exhibit 11 further explains the details behind the District fund balance changes since 2018.

The Engineer's Report is attached as Exhibit 8, and a map of the district is attached as Exhibit 9.

La Mirada Landscape Maintenance District. This maintenance district was formed to fulfill development conditions, which require maintenance of the La Mirada Canyon area. This district maintains the existing habitat and conditions, provides for watering of the manufactured slopes, and provides for studies of possible future uses.

The assessments for this district do not fall within an exemption under Proposition 218, therefore no Engineer's Report is prepared. For FY 2023124, staff recommends no levy of assessment for this district, therefore, an Engineer's Report is not required. There are adequate reserves to provide for the maintenance costs of this district in the coming year. A map of the district is attached as Exhibit 10.

Compliance with Proposition 218. Proposition 218 provides that certain assessments existing prior to November 6, 1996, are exempt from the procedures and approval process otherwise required for assessments, if there is no increase in the amount of the assessment (Article XIII D, section 5). The Engineer has reviewed the assessments and has concluded that the assessments contained in the Engineer's Reports meet the requirements for exemption from the procedures and approval process, as provided in Article XIII D, Section 5, and as further defined by State law. Therefore, staff recommends that all assessments be maintained at the prior authorized assessment rate or be suspended for the current year. For all the Districts listed above, once district reserves are exhausted, any expenditure amount above the current assessment levels would need to be funded by a transfer from the General Fund. A successful Proposition 218 balloting would need to be completed to form a new financing mechanism (Overlay Assessment District) which would generate sufficient assessment revenue to fund the special benefit portion of the services to be provided. This would relieve the General Fund of ongoing subsidies; however current requirements would require the General Fund to fund the general benefit portion of the services.

FISCAL IMPACT: Amounts to be included on the San Diego County tax assessor's roll will be presented at the June 13, 2023, Public Hearing. Estimates of assessment revenue for FY 2023/24 are as follows:
05/09/2023 D2 Page 3 of 20

MEETING DATE: May 9, 2023 PAGE 4
SUBJECT: ENGINEER'S REPORTS FOR FISCAL YEAR 2023/24 LEVY OF ASSESSMENTS City of Vista Landscape and Lighting District No. 1 $ 1,349,639 Street Maintenance District No. 1 $ 321,389
South Melrose Landscape Maintenance District $ 100,464 Total estimated assessment revenue for FY 2023/24 $ 1,771,492 The La Mirada Landscape Maintenance District will have an estimated reserve fund balance on June 30, 2023 of$342,656. For FY 2023/24, expenses for the district are budgeted at $6,510. The estimated reserve fund balance on June 30, 2024, is $341,331.

EXHIBITS:

1. City Council Resolution No. 2023- , approving an Engineer's Report on the City of Vista Landscape and Lighting District No. 1 assessments for the 2023/24 Fiscal Year, declaring its intent to levy and collect assessments, and setting the date for public hearing.

2. City Council Resolution No. 2023- , approving an Engineer's Report and determining the cost of services and the amount of assessment to be imposed on all assessable property within the City of Vista Street Maintenance District No. 1 for Fiscal Year 2023/24 pursuant to the Benefit Assessment Act of 1982 and setting the date for public hearing.

3. City Council Resolution No. 2023- , approving an Engineer's Report on the City of Vista South Melrose Landscape Maintenance District assessments for the 2023/24 Fiscal Year, declaring its intent to levy and collect assessments, and setting the date for public hearing.

4. City of Vista Landscape and Lighting District No. 1 Engineer's Report (Parcel listing on file in City Clerk's office)

5. City of Vista Landscape and Lighting District No. 1 Map

6. City of Vista Street Maintenance District No. 1 Engineer's Report (Parcel listing on file in City Clerk's office)

7. City of Vista Street Maintenance District No. 1 Map

8. City of Vista South Melrose Landscape Maintenance District Engineer's Report (Parcel listing on file in City Clerk's office)

9. City of Vista South Melrose Landscape Maintenance District Map

10. La Mirada Landscape Maintenance District Map

11. Graphs of the fund balance trend from 2018 to 2023 for the three Assessment Districts with active assessments.
05/09/2023 D2 Page 4 of 20

RESOLUTION NO. 2023-

A RESOLUTION OF THE CITY COUNCIL OF THE CHARTERED CITY OF

VISTA, CALIFORNIA, APPROVING AN ENGINEER'S REPORT ON THE CITY OF VISTA LANDSCAPE AND LIGHTING DISTRICT NO. 1 ASSESSMENTS FOR THE 2023/24 FISCAL YEAR, DECLARING ITS INTENT TO LEVY AND

COLLECT ASSESSMENTS, AND SETTINGTHE DATE FOR PUBLIC

HEARING
The City Council of the City of Vista does resolve as follows:

1. Findings. The City Council hereby finds and declares the following:

A. On March 28, 2023, the City Council of the City of Vista (the "City") adopted Resolution No. 2023-38 ordering the preparation of an engineer's report for the assessments to the City of Vista Landscape and Lighting District No. 1 pursuant to the provisions of the Landscaping and Lighting Act of 1972 (the "Act") commencing with section 22500 of the Streets and Highways Code.

B. Pursuant to section 22623 of the Act, the Engineer has filed in the Office of the City Clerk, and submitted for review by the City Council, a report entitled "City of Vista, Landscape and Lighting District No. 1, Engineer's Report, Fiscal Year 2023/24" (the "Report"), dated March 2023, prepared in accordance with Article 4 of the Act, commencing with section 22565, for the assessments to be levied within the District for the 2023/24 Fiscal Year.

2. Action.

A. The Report is approved.

B. The City Council declares its intent to levy and collect assessments on the assessable parcels within the District for the Fiscal Year 2023/24 as described in the Report.

C. The improvements to be provided are generally described as street lighting, traffic signals, and landscape improvements for the maintenance and operation of streets, all of which are more particularly described in the Report.

D. A public hearing by the City Council shall be held for the purpose of considering the proposed assessments, at which any interested person shall have the opportunity to appear, or to submit written comment.

E. The public hearing is fixed for Tuesday, June 13, 2023, at 5:30 p.m., or as soon thereafter as the City Council takes up the matter. The public hearing shall be conducted in the City Council Chambers located at 200 Civic Center Drive, Vista, California, or remotely utilizing teleconferencing and electronic means consistent with State of California Executive Order N-29-

20. F. Pursuant to Streets & Highways Code Section 22626(a), the City Clerk shall cause a copy of this Resolution to be published in the manner required by Government Code Section 6061 at least 10 days prior to the date of the hearing. [Continued on page 2.1
EXHIBIT 1
05/09/2023 D2 Page 5 of 20

RESOLUTION NO. 2023-

CITY COUNCIL OF THE CHARTERED CITY OF VISTA
PAGE 2

3. Adoption. PASSED AND ADOPTED at a meeting of the City Council held on May 9, 2023 by the following vote:

AYES:

NOES:

ABSTAIN:

JOHN FRANKLIN, MAYOR
APPROVED AS TO FORM: ATTEST:

WALTER CHUNG, CITY ATTORNEY KATHY VALDEZ, CITY CLERK
By: By:

APPROVED
Walter C.Chung
20230501104728
05/09/2023 D2 Page 6 of 20

RESOLUTION NO. 2023-

A RESOLUTION OF THE CITY COUNCIL OF THE CHARTERED CITY OF

VISTA, CALIFORNIA, APPROVING AN ENGINEER'S REPORT AND

DETERMINING THE COST OF SERVICES AND THE AMOUNT OF

ASSESSMENT TO BE IMPOSED ON ALL ASSESSABLE PROPERTY
WITHIN THE CITY OF VISTA STREET MAINTENANCE DISTRICT NO. 1 FOR FISCAL YEAR 2023/24 PURSUANT TO THE BENEFIT ASSESSMENT ACT OF 1982 AND SETTING THE DATE FOR PUBLIC HEARING
The City Council of the City of Vista does resolve as follows:

1. Findings. The City Council hereby finds and declares the following:

A. On July 9, 1991, by adoption of Resolution No. 91-122, pursuant to the Benefit Assessment Act of 1982 (the "Act") commencing with Government Code 54703, the City Council approved the levy and collection of an assessment on all assessable property within the City for the maintenance and operation of streets including street sweeping, street striping, and pavement rehabilitation and created a street maintenance benefit district known as the City of Vista Street Maintenance District No. 1 (the "District").

B. The District was formed prior to the passage of Article XIIID of the California Constitution and is exempt from the procedures and approval processes required under that article so long as there is no increase in the rate of assessment. The District has not increased its rates since July 1, 1997, and they remain the same at the present time.

C. As no increase in assessment has occurred, the 1997/98 Engineer's Report Method of Assessment and subsequent rates are the currently approved method and rates for the District. The Assessment Engineer has reviewed the 1997/98 method of assessment and application to ensure the annual assessment is calculated in accordance with such method of assessment. The Report and corresponding assessment roll for Fiscal Year 2023/24 reflects any revisions required in accordance with the method of assessment.

D. The Engineer has caused a report to be prepared, entitled "City of Vista, Street Maintenance District No. 1, Engineer's Report, Fiscal Year 2023/24" (the "Report"), dated March 2023, which has been filed in the Office of the City Clerk and submitted to the City Council for review.

2. Action.

A. The Report is approved.

B. Pursuant to Section 54717(c) of the Act, the City Council hereby determines that the amount of assessment hereby imposed upon each assessable property within the City, for Fiscal Year 2023/24, in an amount authorized in accordance with Proposition 218, is as described in the Report.

C. The assessment imposed by this Resolution shall, pursuant to Section 54718, (a) of the Act, be collected along with the general property taxes and in the same manner and subject to the same penalties and priority of lien as other charges and taxes fixed and collected on behalf of the City.

EXHIBIT 2
05/09/2023 D2 Page 7 of 20

20. F. Pursuant to Government Code Section 54716(b), the City Clerk shall cause a copy of this Resolution to be posted in at least three locations and published in the manner required by Government Code Section 6066 at least 14 days prior to the date of the hearing.

3. Adoption. PASSED AND ADOPTED at a meeting of the City Council held on May 9, 2023 by the following vote:

AYES:

NOES:

ABSTAIN:

JOHN FRANKLIN, MAYOR
APPROVED AS TO FORM: ATTEST:

WALTER CHUNG, CITY ATTORNEY KATHY VALDEZ, CITY CLERK
By: By:

APPROVED
Walter C.Chung
20230501133517
05/09/2023 D2 Page 8 of 20

RESOLUTION NO. 2023-

A RESOLUTION OF THE CITY COUNCIL OF THE CHARTERED CITY OF

VISTA, CALIFORNIA, APPROVING AN ENGINEER'S REPORT ON THE CITY

OF VISTA SOUTH MELROSE LANDSCAPE MAINTENANCE DISTRICT
ASSESSMENTS FOR THE 2023/24 FISCAL YEAR, DECLARING ITS INTENT

TO LEVY AND COLLECT ASSESSMENTS, AND SETTING THE DATE FOR

PUBLIC HEARING
The City Council of the City of Vista does resolve as follows:

1. Findings. The City Council hereby finds and declares the following:

A. On March 28, 2023, the City Council of the City of Vista (the "City") adopted Resolution No. 2023-40 ordering the preparation of an engineer's report for the assessments to the City of Vista South Melrose Landscape Maintenance District pursuant to the provisions of the Landscaping and Lighting Act of 1972 (the "Act") commencing with section 22500 of the Streets and Highways Code.

B. Pursuant to section 22623 of the Act, the Engineer has filed in the Office of the City Clerk, and submitted for review by the City Council, a report entitled "City of Vista, South Melrose Landscape Maintenance District, Engineer's Report, Fiscal Year 2023/24" (the "Report"), dated March 2023, prepared in accordance with Article 4 of the Act, commencing with section 22565, for the assessments to be levied within the District for the 2023/24 Fiscal Year.

2. Action.

A. The Report is approved.

B. The City Council declares its intent to levy and collect assessments on the assessable parcels within the District for the Fiscal Year 2023/24 as described in the Report.

C. The improvements to be provided are generally described as median maintenance, parkway maintenance, and slope maintenance, all of which are more particularly described in the Report.

EXHIBIT 3
05/09/2023 D2 Page 9 of 20

RESOLUTION NO. 2023-

CITY COUNCIL OF THE CHARTERED CITY OF VISTA
PAGE 2

3. Adoption. PASSED AND ADOPTED at a meeting of the City Council held on May 9, 2023 by the following vote:

AYES:

NOES:

ABSTAIN:

JOHN FRANKLIN, MAYOR
APPROVED AS TO FORM: ATTEST:

WALTER CHUNG, CITY ATTORNEY KATHY VALDEZ, CITY CLERK
By: By:

APPROVED
Walter C.Chung
20230501104943
05/09/2023 D2 Page 10 of 20

EXHIBIT 4
City of Vista Landscape and Lighting District No. 1 Engineer's Report Parcel listing on file in City Clerk's office
EXHIBIT 4
05/09/2023 D2 Page 11 of 20

Landscaping and
e 0 0.5 1 2 Mi
Lighting District No. 1
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'y
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District Boundary — CITY OF VISTA

C A L I F O R N I A
05/09/2023 EXHIBIT 5 D2 Page 12 OfsZ9d:4/2612017

EXHIBIT 6
City of Vista Street Maintenance District No. 1 Engineer's Report Parcel listing on file in City Clerk's office
EXHIBIT 6
05/09/2023 D2 Page 13 of 20

Street Maintenance District e ° 0.5 1 2 Mi
r1 "l
J L L ti �� L -Jf.
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District Boundary — CITY OF VISTA

C A L I F O R N I A
05/09/2023 EXHIBIT 7 D2 Page 14 OfsZ9d:4/2612017

EXHIBIT 8
City of Vista South Melrose Landscape Maintenance District Engineer's Report Parcel listing on file in City Clerk's office
EXHIBIT 8
05/09/2023 D2 Page 15 of 20

South Melrose
e 0 500 1,000 2,000 Feet
Landscape Maintenance District '
. . . . . . . . . . . .

CO
♦ P
District Boundary
Maintenance Zone 1 Boundary
♦ ♦ ♦ Maintenance Zone 2 Boundary
® Maintenance Zone 3 Boundary
Maintenance Zone 4 Boundary c�J
® Maintenance Zone 5 Boundary CITY OF VISTA 05/09/2023 EXHIBIT 9 D2 Page 16 oPOed:4/26/2017

La Mirada Canyon
e 0 500 1,000 2,000 Feet
Landscape Maintenance District '
� . .. . .� .. . . . .
. .. . .. .. .. .
f � j
i
0 Zone A
Zone B
r District Boundary
V��, Open Space CITY OF VISTA

C A L I F O R N I A
05/09/2023 EXHIBIT 10 D2 Page 17 o`P29
d:4/27/ "

FISCAL STATUS UPDATE - ASSESSMENT DISTRICTS
DISTRICT FUND BALANCE CHANGES FROM 2018 - CURRENT
Landscaping and Lighting District No.1
---indicates Projection from 2023 budget
1,800,000
1,595,104
1,600,000 —
1,400,000
1,200,000
1,000,000
800,000
553,216 499,748
600,000
392,178 377, 5
400,000
2�8,212
200,000 — ■
2018 2019 2020 2021 2022 2023 City Landscaping and Lighting District(LLD)fund revenues have consistently been less than the funds expenses,which is why the City has a General Fund subsidy for the LLD (capped at$275,000.) From FY 2017/18 to 2020/21 the LLD fund expenses were$508,015 greater than revenues. However over that same period of time the fund received subsidies totalling$673,321. For that reason the fund balance increased $161,038 or 41.1 percent in FY 2018/19 with decreases of$53,468 or 9.7 percent and $122,303 or 24.5 percent in FY 2019/20 and 2020/21 respectively.The fund is sensitive to changes in the cost of energy as electricity and natural gas represents 25-30 percent of annual expenditures. The increase from FY 2020/21 to 2021/22 is due to Resolutions 2021-140 and 2021-195 which authorized a transfer of$545,000 and $1,083,000 respectively for the purpose of increasing the number of street lights.An additional $500,000 was authorized for more lighting facilities via Resolution 2022-188 in December 2022.

Page 1 of 3 ends

05/09/2023 EXHIBIT 11 D2 Page 18 of 20

FISCAL STATUS UPDATE - ASSESSMENT DISTRICTS
DISTRICT FUND BALANCE CHANGES FROM 2018 - CURRENT
South Melrose Landscape District
---indicates Projection from 2023 budget
90,000 81,509
78,931
80,000
70,000
66,535
60,000
50,175
50,000
40,000 34,922
30,000
20,000 `
10,000 6,490
ti
2018 2019 2020 2021 2022 2023 Historically the South Melrose Landscape District expenditures have been greater than the corresponding revenues. From FY 2017/18 to 2018/19 the fund balance decreased $2,578 or 3.2 percent. The decrease accelerated from FY 2018/19 through FY 2021/22 with an average reduction in fund balance of$14,760 or

23.6 percent. In FY 2022/23 the Fund balance is anticipated to decrease$28,432 or 81.4 percent. This is primarily due to the increase in the cost of water which is projected to increase from $49,976 in FY 2021/22 to$61,454 in FY 2022/23. Corresponding revenues, over the same period have consistently averaged approximatly$100,000 per year with little variance from year-to-year.

Page 2 of 3 ends

05/09/2023 D2 Page 19 of 20

FISCAL STATUS UPDATE - ASSESSMENT DISTRICTS
DISTRICT FUND BALANCE CHANGES FROM 2018 - CURRENT
City Street Maintenance District No. 1
---indicates Projection from 2023 budget
350,000 331,811
300,000
245,883
250,000 217,958
200,000
1 150,000 40,200
100,000 69,727
50,000 `
%568
■
2018 2019 20_ 2021 2022 2023
The 1982 Act Street Maintenance District fund balance has increased year-to-year from FY 2017/18 to FY 2021/22.The projected decrease from FY 2021/22 to 2022/23 is due to an increase in slurry seals which is projected to cost$387,000. In FY 2020/21 and 2021/22 the cost of slurry seals charged to the 1982 Act Street Maintenance District were$98,900 and $0, respectively.

Page 3 of 3 ends

05/09/2023 D2 Page 20 of 20

40000

CITY OF VISTA
Assessment Districts
FY 2023/24 Annual Levy Process and
Fiscal Status Update
May 9 , 2023

CITY OF VISTA
Assessment D
• Background
— 3 Assessment Districts (ADs) formed in early 90's. — ADs have been levied annually through FY 2022/23 via athree-step process. Tonight's item is step two for FY 2023/24.
— Assessment amounts not increased since approval of Prop 218 ( 1997) and did not complete the
validation process.

Assessment Districts Annual Levy Process

CITY OF VISTA
• Annual Levy Information for FY 2023/24
— Landscape and Lighting District No. 1
• City-wide; $1,347,457 aggregate levy amount
— South Melrose Landscape Maintenance District • 1,359 parcels; $ 100,545 aggregate levy amount — Street Maintenance District No. 1
• City-wide; $321,583 aggregate levy amount

Assessment Districts Fiscal Status Update

CITY OF VISTA
Landscaping and Lighting District No. 1
---indicates Projection from 2023 budget
s d
1,800,000 1,595,104
1,600,000 �r-�
r- --oir.�n. l s_
1,400,000
♦ 1
1,200,000 s ear�@
1 g � tJ
1,000,000 -l.J�`r ,.rt�'y J
.6�rd o' Mawtsrao -.r
800,000 ♦ �j f'�r 4.
a
�5533,216 499,748 ♦ � �--- � ��
600,000 s` �.�d8eo,
392,178 377, 5 ♦ �a '~
400,000 218 212
200,000 11
L
2018 2019 2020 2021 2022 2023
L? Bistrid Bountlary L- c'TM^0rVS°

Assessment Districts Fiscal Status Update

CITY OF VISTA
South Melrose Landscape District
---indicates Projection from 2023 budget
90,000
81,509 , ��
78,931 1
80,000
70,000 66,535 �`; eP
60,000 Q
50,175 1
a
50,000
40,000 34,922
30,000 ♦ ��
20,000
10,000 ♦6,490
ti
L, Bisbict Boundary
® Maintenance Zone 1 Boundary
2018 2019 2020 2021 2022 2023 0 Maintenance Zone 2 Boundary ® Maintenance Zone 3 Boundary
OMaintenance Zone 4 Boundary \
® Maintenance Zone 5 Boundary Cm of VISTA

Assessment Districts Fiscal Status Update

CITY OF VISTA
City Street Maintenance District No. 1
---indicates Projection from 2023 budget J �i i--_2 r^
r\� � EBvbleo w f�l
350,000 331,811
300,000
245,8
250,000
a
217,958 t-
200,000
140,20
150,000
SpadowrOge p,
100,000 69 727 F
f, y
fL
50,000
8%568
2018 2019 2020 2021 2022 2023 L_ _� cm 7 District .F Vlsra_ ..-

CITY OF VISTA Assessment Districts Fiscal Status Update Purchasing Power Erosion 1997-2023
API Inflation al�ulat�r
S1 100.001
Puly F1997
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CITYOFVISTA.COM

CITY OF VISTA
� Assessment Districts Fiscal Status Update
• Options for Fiscal Issue Remediation
— Assessment Engineering Study and Overlay
Districts
— Increased General Fund Subsidies in future
fiscal years
— Reduction of Level of Services

CITY OF VISTA
Assessment Districts Reco 1 1
• Staff Recommendations
— Approve FY 2023/24 annual process resolutions
— Direct staff to complete one of these options:
• Work with City consultants on an Overlay District • Quantify future year General Fund subsidies to maintain current levels of service
• Reduce level of service and expenditures to match estimated assessment revenue

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CITY OF VISTA
Assessment Districts
FY 2023/24 Annual Levy Process and
Fiscal Status Update
May 9 , 2023

CITY OF VISTA
� Assessment Districts Fiscal Status Update
LLMD No . 1 Flow of Funds (2018-2023)
Year Fund Balance Revenue Expenses Transfer in Net Change Fund Balance 2018 212,140 1,290,691 (1,501,770) 391,117 180,038 392,178 2019 392,178 1,319,108 (1,424,832) 266,762 161,038 553,216 2020 553,216 1,326,838 (1,380,306) - (53,468) 499,748 2021 499,748 1,342,631 (1,480,376) 15,442 (122,303) 377,445 2022 377,445 1,319,698 (1,600,222) 1,498,182 1,217,658 1,595,104 2023 11595,104 1,350,446 (3,571,888) 844,551 (1,376,891) 218,212 •

VISTACITY OF Assessment Districts Fiscal Status Update S . Melrose LIVID Flow of Funds (2018-2023)
Year Fund Balance Revenue Expenses Transfer in Net Change Fund Balance 2018 86,188 99,517 (104,195) - (4,678) 81,509 2019 81,509 102,795 (105,373) - (2,578) 78,931 2020 78,931 103,155 (115,551) - (12,396) 66,535 2021 66,535 99,478 (115,838) - (16,360) 50,175 2022 50,175 98,622 (113,875) - (15,253) 34,922 2023 34,922 101,155 (129,587) (28,432) 6,490 •

Assessment Districts Fiscal Status Update

CITY OF VISTA
SMD No . 1 Flow of Funds (2018-2023)
Year Fund Balance Revenue Expenses Transfer in Net Change Fund Balance 2018 (3,428) 301,362 (228,207) 73,154 69,727 2019 69,727 307,037 (236,563) 70,474 140,200 2020 140,200 3141864 (237,107) 77,757 217,958 2021 217,958 318,476 (290,550) 27,925 245,883 2022 245,883 306,379 (220,451) 85,927 331,811 2023 331,811 322,094 (645,337) (323,243) 8,568 •

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Assessment Districts
FY 2023/24 Annual Levy Process and
Fiscal Status Update
May 9, 2023

•Background
–3 Assessment Districts (ADs) formed in early 90’s.
–ADs have been levied annually through FY 2022/23
via a three-step process. Tonight’s item is step two
for FY 2023/24.
–Assessment amounts not increased since approval
of Prop 218 (1997) and did not complete the
validation process.

Assessment District Basics

•Annual Levy Information for FY 2023/24
–Landscape and Lighting District No. 1
•City -wide; $1,347,457 aggregate levy amount
–South Melrose Landscape Maintenance District
•1,359 parcels; $100,545 aggregate levy amount
–Street Maintenance District No. 1
•City -wide; $321,583 aggregate levy amount
Assessment Districts Annual Levy Process

Assessment Districts Fiscal Status Update
392,178
553,216 499,748
377,445
1,595,104
218,212
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2018 2019 2020 2021 2022 2023
Landscaping and Lighting District No. 1
---indicates Projection from 2023 budget

Assessment Districts Fiscal Status Update
81,509 78,931
66,535
50,175
34,922
6,490
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
2018 2019 2020 2021 2022 2023
South Melrose Landscape District
---indicates Projection from 2023 budget

Assessment Districts Fiscal Status Update
69,727
140,200
217,958
245,883
331,811
8,568
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2018 2019 2020 2021 2022 2023
City Street Maintenance District No. 1
---indicates Projection from 2023 budget

Purchasing Power Erosion 1997-2023
Assessment Districts Fiscal Status Update

•Options for Fiscal Issue Remediation
–Assessment Engineering Study and Overlay
Districts
–Increased General Fund Subsidies in future
fiscal years
–Reduction of Level of Services
Assessment Districts Fiscal Status Update

•Staff Recommendations
–Approve FY 2023/24 annual process resolutions
–Direct staff to complete one of these options:
•Work with City consultants on an Overlay District
•Quantify future year General Fund subsidies to maintain current levels of service
•Reduce level of service and expenditures to match
estimated assessment revenue
Assessment Districts Recommendations

Assessment Districts
FY 2023/24 Annual Levy Process and
Fiscal Status Update
May 9, 2023

LLMD No. 1 Flow of Funds (2018-2023)
Assessment Districts Fiscal Status Update
Year Fund Balance Revenue Expenses Transfer in Net Change Fund Balance 2018 212,140 1,290,691 (1,501,770)391,117 180,038 392,178 2019 392,178 1,319,108 (1,424,832)266,762 161,038 553,216 2020 553,216 1,326,838 (1,380,306)-(53,468)499,748
2021 499,748 1,342,631 (1,480,376)15,442 (122,303)377,445 2022 377,445 1,319,698 (1,600,222)1,498,182 1,217,658 1,595,104 2023 1,595,104 1,350,446 (3,571,888)844,551 (1,376,891)218,212

S. Melrose LMD Flow of Funds (2018-2023)
Assessment Districts Fiscal Status Update
Year Fund Balance Revenue Expenses Transfer in Net Change Fund Balance 2018 86,188 99,517 (104,195)-(4,678)81,509
2019 81,509 102,795 (105,373)-(2,578)78,931
2020 78,931 103,155 (115,551)-(12,396)66,535
2021 66,535 99,478 (115,838)-(16,360)50,175
2022 50,175 98,622 (113,875)-(15,253)34,922
2023 34,922 101,155 (129,587)(28,432)6,490

SMD No. 1 Flow of Funds (2018-2023)
Assessment Districts Fiscal Status Update
Year Fund Balance Revenue Expenses Transfer in Net Change Fund Balance 2018 (3,428)301,362 (228,207)73,154 69,727
2019 69,727 307,037 (236,563)70,474 140,200
2020 140,200 314,864 (237,107)77,757 217,958
2021 217,958 318,476 (290,550)27,925 245,883
2022 245,883 306,379 (220,451)85,927 331,811
2023 331,811 322,094 (645,337)(323,243)8,568

Civic Center Dr. Median at The Grove Sr. Housing

E. Vista Way Median at Fire Station #6

N. Santa Fe Ave Median at Indian Rock

S. Melrose Median at Breeze Hill

Sycamore Ave Median at Business Park Dr.

Vista City CouncilMay 9, 2023

Vista City Council
May 9, 2023