TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Steve S. Charelian, Finance Director
Julie Bondarchuk, Financial Controller
SUBJECT:Title
Conduct Public Hearing and Consideration of a Resolution Providing for Annual Levy and Collection of Street Lighting and Landscaping District Maintenance Assessments for Fiscal Year 2024-2025 (Finance Director Charelian).
(Estimated Time: 15 Mins.)
A) CONDUCT PUBLIC HEARING
B) ADOPT RESOLUTION NO. 24-0073 PROVIDING FOR ANNUAL
LEVY AND COLLECTION OF FISCAL YEAR 2024-2025
MAINTENANCE ASSESSMENTS
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Recommended Action
RECOMMENDATION:
Staff recommends that after conducting a public hearing, the City Council adopt Resolution No. 24-0073 providing for the annual levy and collection of Street Lighting and Landscaping District maintenance assessments for Fiscal Year (FY) 2024-2025.
Body
FISCAL IMPLICATIONS:
The assessment rates remain unchanged from FY 2024-2025. The total assessments for FY 2024-2025 are $377,468.
BACKGROUND:
The City provides for the maintenance costs of Citywide street lighting and downtown landscaping through a Street Lighting and Landscaping Assessment District. The district was formed pursuant to the California Landscaping and Lighting Act of 1972. The district must be renewed annually through a series of City Council resolutions culminating with tonight’s public hearing and adoption of Resolution No. 24-0073.
The following is a summary of previous City Council actions:
April 2, 2024 - Adoption of Resolution No. 24-0033 ordering plans, specifications, cost estimates and the assessment engineer’s report of annual assessments.
May 21, 2024 - Adoption of Resolution No. 24-0048 approving the assessment engineer’s report for the annual levy of street lighting assessments for FY 2024-2025.
May 21, 2024 - Adoption of Resolution No. 24-0049 declaring the City Council’s intention to provide for the annual levy and collection of assessments for street lighting maintenance and setting the public hearing for June 18, 2024.
DISCUSSION:
The assessments for FY 2024-2025 ($377,468), combined with a City contribution of $13,117 for Downtown Streetscape (zone 10), will be used entirely for maintenance and operation of the street lighting (zones 1 through 9) and the Downtown Streetscape (zone 10). The City contribution of $13,117 represents the benefit received by the City via the inclusion of City Hall frontage along Highland Avenue in the Streetscape area (zone 10). In addition, the General Fund will be providing an operating subsidy of $313,746 to cover shortfalls of $303,200 for street lighting (zones 1 through 9) and $10,546 for Streetscape (zone 10).
In summary, total estimated revenue, including the General Fund contribution for FY 2024-2025, is $390,585, while the budgeted expenditures for all zones is $704,331, resulting in an estimated deficit of $313,746.
As discussed during the FY 2024-2025 budget meetings and in prior staff reports, the Street Lighting and Landscaping Fund requires a subsidy from the General Fund to relieve the deficit in the current year and for the foreseeable future. Ongoing deficits, totaling an estimated $1.8 million over the next five years, can be alleviated through service level reductions/efficiencies, increased assessments (requiring a Proposition 218 vote), or other new revenue sources which may also require voter approval.
PUBLIC OUTREACH:
This public hearing is the final step in the process to establish the FY 2024-2025 assessment. The public hearing was properly noticed and the assessment engineer’s report, map of assessment zones, and register of assessment levies are on file with the City Clerk.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Resolution No. 24-0073
2. Engineer's Report Landscaping and Street Lighting Maintenance Assessment District Fiscal Year 2024-2025 (Including District Map)