TO:
Honorable Mayor and Members of the City Council
THROUGH:
David N. Carmany, City Manager
FROM:
FROM:
Bruce Moe, Finance Director
Henry Mitzner, Controller
SUBJECT:Title
Resolution Ordering Plans, Specifications, Cost Estimates and Engineer's Report for Annual Street Lighting Assessments
ADOPT RESOLUTION NO. 13-0013
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 13-0013, ordering the preparation of plans, specifications, cost estimates and the engineer's report pursuant to the Landscaping and Lighting Act of 1972 for the annual renewal of the Landscaping and Lighting District for fiscal year (FY) 2013-2014.
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FISCAL IMPLICATIONS:
The assessment engineering cost for the Landscaping and Lighting District is $7,000 and is budgeted in the Public Works department.
It is important to note that because assessments have been fixed for many years, and costs continue to rise and exceed the revenue generated by the assessments, the Street Lighting and Landscape Fund has depleted its fund balance. As a result, the General Fund subsidizes the fund. The projected subsidy in the current fiscal year (2012-2013) is $195,555. A Proposition 218 vote is required to raise the assessments.
BACKGROUND:
The City provides for the operations and maintenance of Street Lighting and the Downtown Streetscape via the Street Lighting and Landscaping Assessment District. The District, which was formed pursuant to the Landscaping and Lighting Act of 1972, is comprised of separate street lighting districts for the majority of the City, and the lighting and landscaping services provided for the Downtown.
DISCUSSION:
The District must be renewed annually through a series of City Council resolutions, culminating with a public hearing. The public hearing and adoption of a final resolution are scheduled for the July 2, 2013 City Council meeting.
In order to renew the districts, an assessment engineer must review and develop the benefit assessments for each parcel. Those assessments are based on the proposed budget for the upcoming fiscal year commencing July 1. For FY 2013-2014, the preliminary total assessment remains unchanged at $379,000 (the assessments cannot be increased without a Proposition 218 vote). Based on preliminary analysis, the annual subsidy provided by the General Fund to the Street Lighting in fiscal year 2013-2014 will be the same as estimated in the fiscal year 2012-2013 adopted budget, $195,555. The FY 2013-2014 opening fund balance of the Street Lighting Fund will be $-0- and a General Fund subsidy is required to match the excess of expenditures over revenues.
CONCLUSION:
The first step in this annual process is for City Council to adopt a resolution which authorizes the preparation of an Engineer's Report for the District. On May 7, 2013, the report will be submitted to City Council, along with a Resolution of Intention, which authorizes proceedings for the annual levy and collection of assessments. Finally, on July 2, 2013, a public hearing will be conducted at which time City Council will consider adoption of a resolution providing for the levy and collection of street lighting assessments for FY 2013-2014, which will then appear on the consolidated property tax bills issued in Fall 2013.
Attachment:
1. Resolution No. 13-0013
2. Lighting and Landscape Assessment Districts Map