TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Libby Bretthauer, Finance Director
Julie Bondarchuk, Financial Controller
SUBJECT:Title
Conduct Public Hearing and Consideration of a Resolution Regarding the Annual Storm Drain Service Fee for Fiscal Year 2025-2026 (Budgeted) (Finance Director Bretthauer).
(Estimated Time: 15 Mins.)
A) CONDUCT PUBLIC HEARING
B) ADOPT RESOLUTION NO. 25-0094
Body
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RECOMMENDATION:
Staff recommends that the City Council conduct a public hearing regarding the annual storm drain service fee for fiscal year (FY) 2025-2026 and adopt Resolution No. 25-0094 authorizing the collection of storm drain fees on the Los Angeles County Tax Roll and approving a Consumer Price Index (CPI) increase of 3.4%.
FISCAL IMPLICATIONS:
The storm drain fee is estimated to generate an estimated $2.2 million from the direct property assessments for Fiscal Year 2025-2026. If approved, the CPI increase will generate an additional $74,800.
BACKGROUND:
The City levies an annual storm drain service fee on each parcel of real property in the City. The fee is levied to finance the costs of on-going operations and maintenance of storm drain facilities and services.
The storm drain fee is collected each fiscal year via the County of Los Angeles consolidated property tax bill. The City submits such fees to the County each year by the August due date specified by the County Auditor to include the fee on the property tax bills issued in October.
DISCUSSION:
Storm Drain fees in FY 2025-2026 are estimated to generate $2.2 million plus an additional $74,800 if the CPI adjustment is approved. The storm drain fee for each property varies dependent on the impervious square footage on each property and is adjusted annually for inflation. The CPI adjustment is allowable with City Council approval based on the Proposition 218 storm drain fee ballot measure that concluded in January 2024. The FY 2025-2026 storm drain rate includes a CPI adjustment of 3.4% over the prior year based on the All Urban Consumers in the Los Angeles-Long Beach-Anaheim region from December 2023 to December 2024.
The Property Report for Proposed Storm Drain Fee is available for viewing with the City Clerk. Due to the timing of when Los Angeles County finalizes appeals to the impervious square footage data, the final tax roll will be updated before it is sent to Los Angeles County before the August deadline. An updated report titled Property Report for Proposed Strom Drain Fee will be filed with the City Clerk if there are any changes.
In order to include the fee on the property tax bill, the City Council must hold a public hearing, at which time the City Council considers all objections and protests regarding the proposed levy of the fee for FY 2025-2026. Assuming there is not a majority protest, the City Council may then adopt Resolution No. 25-0094, approving the CPI increase of 3.4% and ordering that the fee be collected for FY 2025-2026 on the County of Los Angeles tax roll.
PUBLIC OUTREACH:
The notice of this hearing was properly published in The Beach Reporter on July 3, 2025, and July 10, 2025.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that there is no possibility that the activity may have a significant effect on the environment; therefore, pursuant to Section 15061(b)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
LEGAL REVIEW:
The City Attorney has approved the Resolution as to legal form.
ATTACHMENT:
1. Resolution No. 25-0094