MEETING DATE:
JUNE 22, 2021
SUBJECT:
Title
RESOLUTION NOS. 2021-8891 & 2021-8892 - PRELIMINARY ENGINEER’S REPORT AND INTENT TO LEVY ASSESSMENT FOR THE CITY OF SAN MARCOS LANDSCAPING AND LIGHTING DISTRICT NO. 1 FOR FISCAL YEAR 2021-2022
Body
Recommendation
Recommendation
ADOPT resolutions approving the preliminary engineer’s report and declaring the City of San Marcos’ intention to levy and collect assessments in the Landscape and Lighting District No. 1 for fiscal year 2021-2022 and setting a subsequent public hearing on July 13, 2021 at the regular 6:00 p.m Council meeting
Body
Board or Commission Action
Not applicable
Relevant Council Strategic Theme
Quality of Life
Good Governance
Relevant Department Goal
Not applicable
Executive Summary
The Landscaping and Lighting Act of 1972 (“Act”) requires that an engineer’s report be prepared for the renewal of district assessments for the fiscal year 2021-2022. The engineer’s report was ordered on May 25, 2021 by Council Resolution 2021-8878.
The City of San Marcos has completed the preliminary engineer’s report for Landscape and Lighting District No. 1 (“District”) to levy fiscal year 2021-2022 assessments on properties within the District. These proceedings allow the City Council the ability to indicate their intent to levy assessments on the District and set the public hearing date.
Discussion
The purpose of the District is to provide yearly revenue from each subdivision or development completed between June, 1981 and July, 1998 to pay its fair share of maintenance costs. These costs include maintenance for landscaping within City rights of way, landscaping within development open space areas and street lights within the City. The revenue also contributes to the development’s fair share for the energy cost of street lights.
The Act requires the implementation of certain proceedings for any fiscal year in which an assessment is to be levied and collected within an existing assessment district formed under its provisions. As part of the proceedings, a report must be prepared describing the assessments that will be levied to pay for costs of improvements (“Report”). The content of the Report is as required by California Streets and Highway Code (SHC) Section 22567. Since the formation of the District, the necessary proceedings have been conducted with respect to levies of annual assessments on properties within the District. The engineer's Report and accompanying resolutions are attached to this agenda packet.
The proposed assessments for both landscaping and lighting represent 5,964 parcels in the District. Because the City adopted an assessment formula in 1994, State law allows the City to notify by mail only those properties which will have a new assessment. There have been no new parcels added to the District during fiscal year 2020-2021; therefore the City will not be performing any notification for the fiscal year 2021-2022.
In 1998, proceedings were initiated to form Community Facilities District 98-02: Lighting, Landscaping, Open Space and Preserve Maintenance (CFD 98-02). Services provided by CFD 98-02 include those similar services provided by the District. As properties redevelop in the City they are required to de-annex from the District and annex to the City’s Community Facilities Districts, including CFD 98-02. This process insures that no property pays for services twice.
The cost for landscaping, median, parkways, slope and lighting maintenance costs are detailed within the engineer’s Report and are reflected for the proposed fiscal year 2021-2022 assessment.
Environmental Review
Not applicable
Fiscal Impact
The LLMD is estimated to produce revenue of $530,000 for Fiscal Year 2021-22. These revenues are not sufficient to cover all expected and eligible expenses. An estimated $660,000 subsidy from the General Fund (100) will be needed. The renewal of District assessments will allow the continued levy on annexed properties within the District.
Attachments
Resolution Approving Preliminary Engineer’s Report
Resolution of Intent to Provide Levy and Setting Time for Public Hearing
Preliminary Engineer’s Report
Prepared by: Jeffrey Jorgenson, Accountant
Reviewed by: Donna Apar, Assistant Finance Director
Approved by: Lisa Fowler, Finance Director