TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Bruce Moe, Finance Director
Henry Mitzner, Controller
SUBJECT:Title
Public Hearing Regarding Resolution No. 15-0020 for the Annual Levy and Collection of Street Lighting and Landscaping District Maintenance Assessments for Fiscal Year 2015-2016 (Finance Director Moe).
CONDUCT PUBLIC HEARING, ADOPT RESOLUTION NO. 15-0020
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council: a) conduct a public hearing, and b) adopt Resolution No. 15-0020, providing for the annual levy and collection of Street Lighting and Landscaping District maintenance assessments for Fiscal Year (FY) 2015-2016.
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FISCAL IMPLICATIONS:
The assessment rates remain unchanged from FY 2014-2015. The total assessments for FY 2015-2016 are $378,127.
BACKGROUND:
The City provides for the maintenance costs of citywide street lighting and downtown landscaping via 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 the resolution.
The following is a summary of previous Council actions:
4/7/15 - Adoption of Resolution No. 15-0012 ordering plans, specifications, cost estimates and the assessment engineer's report of annual assessments.
5/5/15 - Adoption of Resolution No. 15-0016 approving the assessment engineer's report for the annual levy of street lighting assessments for FY 2015-2016; adoption of Resolution No. 15-0017 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 16, 2015.
DISCUSSION:
The assessments for FY 2015-2016 ($378,127), combined with a City contribution of $19,053 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 $19,053 represents benefit received by the City via 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 $217,649 to cover revenue and contribution shortfalls. The shortfall components are $153,683 for street lighting (zones 1 through 9), and $63,966 for Streetscape (zone 10). In summary, total estimated revenue, including the General Fund contribution for FY 2015-2016, is $397,180, while the budgeted expenditures for all zones is $614,829 resulting in a deficit of $217,649.
As discussed during the FY 2015-2016 budget meetings and in prior staff reports, the Street Lighting and Landscaping Fund will require subsidy from the General Fund in the current fiscal year ($217,649) and for the foreseeable future. Ongoing deficits can only be alleviated through service level reductions, or by increased assessments which require a Proposition 218 vote.
CONCLUSION:
Tonight's public hearing is the final step in the process to establish the FY 2015-2016 assessment. The public hearing has been properly noticed and the assessment engineer's report, map of assessment zones, and register of assessment levies have been placed on file with the City Clerk.
Attachments:
1. Resolution No. 15-0020
2. Engineer's Report FY 2015-2016