MEETING DATE:
JUNE 25, 2024
SUBJECT:
Title
RESOLUTION NOS. 2024-9313 & 2024-9314 - APPROVING THE PRELIMINARY ENGINEER’S REPORT FOR ANNUAL LEVY OF ASSESSMENT FOR FISCAL YEAR 2024-2025 FOR LANDSCAPING AND LIGHTING DISTRICT NO.1, AND DECLARING ITS INTENTION TO PROVIDE FOR AN ANNUAL LEVY AND COLLECTION OF ASSESSMENTS FOR MAINTENANCE IN LANDSCAPING AND LIGHTING DISTRICT NO. 1, AND SETTING A TIME AND PLACE FOR A PUBLIC HEARING THEREON
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 District for the fiscal year 2024-2025 and establishing a subsequent public hearing on July 23, 2024 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 the district assessments for the fiscal year 2024-2025. The engineer’s report was ordered on May 28, 2024 by Council Resolution 2024-9291.
The City of San Marcos has completed the preliminary engineer’s report for the District to levy the fiscal year 2024-2025 assessments on properties within the District. These proceedings are intended to provide City Council with 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 right 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 the street lights within the City.
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 set forth, a report must be prepared describing the assessments that will be levied to pay for costs of improvements. The content of the report is dictated by the 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 required resolutions are attached.
The proposed assessments for both landscaping and lighting represent 5,964 parcels previously existing 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 2023-2024; therefore the City will not be performing any notification for the fiscal year 2024-2025.
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 annex to the City’s Community Facilities Districts including CFD 98-02. Any existing developed parcel that is currently in the District is then removed from the District and annexed into 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 engineers report and are reflected for the proposed fiscal year 2024-2025 assessment.
Environmental Review
Not applicable
Fiscal Impact
The LLMD is estimated to produce revenue of $530,000 for fiscal year 2024-25. 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 for the continued levy on annexed properties within the District.
Attachment(s)
Resolution 2024-9313
Resolution 2024-9314
Preliminary Engineer’s Report
Prepared/Submitted by: Jeffrey Jorgenson, Senior Accountant
Reviewed by: Donna Apar, Finance Director
Approved by: Michelle Bender, City Manager