Title
Citywide Landscaping & Lighting Assessment District - Initiate Annual Proceedings Fiscal Year (FY) 2024/25
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FileID
File ID: 2024-00846
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Location
Location: Citywide
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Recommendation
Recommendation: Adopt a Resolution: 1) approving the Fiscal Year (FY) 2024/25 Engineer’s Annual Report for the Citywide Landscaping and Lighting Assessment District (District); 2) declaring the intention to levy and collect assessments for FY2024/25 improvements for the District; and 3) setting a time and place for a Public Hearing for June 18, 2024.
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Contact
Contact: Eric Frederick, Special Districts Manager, (916) 808-5129, efrederick@cityofsacramento.org
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Presenter
Presenter: None.
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Attachments
Attachments:
1-Description/Analysis
2-Background
3-Schedule of Proceedings
4-Proposed FY2024/25 Citywide L&L District Budget Table
5-Resolution
6-Exhibit A (Proposed FY2024/25 District Budget & Parcel Assessments)
7-Exhibit B (FY2024/25 Engineer’s Annual Report)
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Description/Analysis
IssueDetail
Issue Detail: The District is a special assessment district formed under the California Landscaping and Lighting Act of 1972 (California Streets and Highways Code § 22500 et seq.) (1972 Act). Properties located in the District are levied an annual assessment to fund certain landscape and lighting maintenance and construction services throughout the City, including arterial and intersection lighting, neighborhood street lighting, maintenance of medians, street trees, and neighborhood parks, and graffiti abatement.
Pursuant to the 1972 Act and City Code Chapter 3.124, an Engineer’s Annual Report (Annual Report) for the District is required to be prepared for Council review and approval. The Annual Report describes the improvements to be maintained by the District and recommends the assessments to be collected to fund such maintenance. The Annual Report has been prepared, and on March 26, 2024, Council directed that such Annual Report be filed with the City Clerk (Resolution No. 2024-0081). Council approval of the Annual Report is required before the City can collect assessments to provide funding for the maintenance and construction services described above and as detailed in the Annual Report. The Council must also adopt a Resolution of Intention for its levy and collection of assessments for the District and hold a hearing at a future date to formally confirm the assessments. Additional information on this District is provided in the Background section of this report.
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PolicyConsiderations
Policy Considerations: The actions in the recommended Resolution are required by the 1972 Act and City Code Chapter 3.124 for annual proceedings of an existing district.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations:
California Environmental Quality Act (CEQA): Under the CEQA Guidelines, continuing administrative activities of an assessment district and creation of government funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment do not constitute a project and are therefore exempt from CEQA review (14 Cal. Code Regs. § 15378(b)(2), (b)(4)).
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation: Approval of the Annual Report (Exhibit B to the attached Resolution) supports funding the maintenance and construction services described above and in the Annual Report.
The recommended Council action is necessary to allow staff to notify the public of the proposed hearing, which has been set for June 18, 2024. At the conclusion of the public hearing, staff will recommend Council adopt the budget and levy the assessments.
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FinancialConsiderations
Financial Considerations: Each year the District assessment and budget are developed, taking into consideration several factors including the cost of services, the projected number of parcels in each assessment category, and the amount of projected surplus or deficit in the District fund balance at the end of the current fiscal year. As shown on Attachment 4 to this report, the proposed FY2024/25 District expenditure budget totals $21,283,550, a decrease of $219,830 from the approved FY2023/24 District expenditure budget. This decrease is the result of lowering amounts budgeted for certain capital projects from FY2023/24 levels that were only supported from utilizing available fund balance.
Council previously authorized a provision to mitigate cost increases by automatically adjusting the maximum annual assessment each year based on the April-to-April change in the Consumer Price Index - San Francisco All Urban Consumers (CPI), but not to exceed 3% in any year. For FY2024/25, the change in the April 2023 and April 2024 CPI was 3.77%, and therefore the proposed increase in the FY2024/25 assessment by land use category is 3%. This equates to a maximum increase of $2.88 for a single-family residential parcel and $56.44 for a commercial parcel for FY2024/25 and is necessary to maintain service levels. The FY2024/25 assessments are equal to the highest authorized amount for the District. Based on this increase, the total FY2024/25 assessment revenue is projected to be $20,770,012.
The $513,538 difference between the expenditure budget and the projected assessment revenue is being funded from available fund balance.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): None.
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