Title:
Title
Fiscal Year (FY) 2020/21 Annual Report for Assessment Districts for Maintenance Services Under Chapter 3.124 of the Sacramento City Code
End
FileID
File ID: 2020-00609
Location
Location: Districts 2, 4, 7, and 8
Recommendation:
Recommendation
Adopt: 1) a Resolution approving the Willowcreek Maintenance Assessment District Engineer's Annual Report and levying assessment for Fiscal Year FY2020/21; 2) a Resolution approving the Northside Subdivision Maintenance District Engineer's Annual Report and levying assessment for FY2020/21; 3) a Resolution approving the Laguna Creek Maintenance District Engineer's Annual Report and levying assessment for FY2020/21; and 4) a Resolution approving the Water Quality Maintenance District Engineer's Annual Report and levying assessment for FY2020/21.
Contact: Mary Jean Rodriguez, Program Specialist, (916) 808-1980; Sheri Smith, Special Districts Manager, (916) 808-7204, Department of Finance
Body
Presenter: None
Attachments:
01-Description/Analysis
02-Background
03-Willowcreek Resolution
04-Willowcreek Exhibit A
05-Willowcreek Exhibit B
06-Northside Resolution
07-Northside Exhibit A
08-Northside Exhibit B
09-Laguna Creek Resolution
10-Laguna Creek Exhibit A
11-Laguna Creek Exhibit B
12-Neignborhood Water Quality District (NWQD) Resolution
13-NWQD Exhibit A
14-NWQD Exhibit B
Description/Analysis
Issue Detail: Sacramento City Code Section 3.124.190 requires that the following maintenance districts (Districts) present an annual budget to City Council:
• Willowcreek Maintenance Assessment District (Willowcreek)
• Northside Maintenance Assessment District (Northside)
• Laguna Creek Maintenance District (Laguna Creek)
• Neighborhood Water Quality District (Neighborhood Water Quality)
The Districts were formed to provide various maintenance and operations services such as street landscape, park, open space, drainage basin, and wetlands maintenance as well as water quality programs. More detailed descriptions of the services provided in each district are listed in the Background section of this report.
Approval of the Districts’ annual budgets will authorize the City to collect assessments in the amount sufficient to provide funding for maintenance, operations, and water quality services required in each district for FY2020/21.
Policy Considerations:
• Willowcreek: The recommended action supports Best Management Practices (BMPs) to reduce storm water pollution as required by the Federal Clean Water Act and the City’s National Pollutant Discharge Elimination System (NPDES) Permit within the district’s boundaries.
• Northside: This action, consistent with Sacramento City Code requirements, supports BMPs to provide maintenance activities associated with the Northside Subdivision Wetlands Mitigation Program as required by the U.S. Army Corps of Engineers Permit, issued June 12, 1990, for the Northside Subdivision. The District also funds maintenance activities for the landscaped area adjacent to Marysville Boulevard.
• Laguna Creek: This action supports BMPs to provide funding for environmental monitoring and maintenance activities associated with the Laguna Creek Wetlands Mitigation Program as required by the U.S. Army Corps of Engineer’s Permit.
• Neighborhood Water Quality: This action supports BMPs to provide funding for maintenance of wetland areas identified in the U.S. Army Corps of Engineers’ Nationwide Permits, Water Quality Swales and Detention areas, and landscaping improvements located in and/or adjacent to residential subdivisions in this district.
Economic Impacts: None.
Environmental Considerations:
California Environmental Quality Act (CEQA): Under CEQA Guidelines, administration of the District does not constitute a project, and is therefore exempt from review (14 Cal. Code Regs. §15378(b)(2) & (5)).
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: The requirements for the annual proceedings for these existing Districts are set forth in Section 3.124.190 of the Sacramento City Code, which requires the filing of an annual engineer’s report describing the required maintenance work and associated costs as requisite to levying annual assessments.
Financial Considerations: All of the Districts are self-supporting and have no impact on the General Fund. The cost of maintenance, operation, and program services required by each district will be funded through the assessment levies. A summary of each district budget and proposed assessment is listed below. Detailed expense budgets are included in the attached resolutions as well as the Engineer’s Reports on file with the Infrastructure Finance Division of the Department of Finance, designated by the City Clerk’s Office to be the repository of documents associated with special districts.
• Willowcreek: The total assessment for FY2020/21 is projected at $71,329, with an expense budget of $68,082. Collection of surplus revenues is intentional in order to increase fund balance. The proposed assessment of $78.13 is a 25% increase over last year’s assessment of $62.50, which equates to an increase of $15.63 per single family home. The assessment will continue to increase in future years to fully fund expenses and increase fund balance to a prudent level.
• Northside: The total assessment for FY2020/21 is projected at $12,250, with an expense budget of $19,093. Such deficit spending in FY2020/21 is intentional in order to reduce fund balance. The proposed assessment of $109.38 is a 25% increase over last year’s assessment of $87.50, which equates to an increase of $21.88 per single family home. The assessment will continue to increase in future years to fully fund expenses as the excess fund balance is depleted.
• Laguna Creek: The total assessment for FY2020/21 is projected at $202,524, with an expense budget of $205,433. Such deficit spending is intentional in order to reduce fund balance. The proposed total assessment in FY2020/21 represents a 3.3% increase over last year’s assessment, which equates to an increase of $2.13 per single family home. A more detailed breakdown of the assessment, by land use type, is in the Laguna Creek Resolution. The assessment will continue to increase in future years to fully fund expenses as the excess fund balance is depleted.
• Neighborhood Water Quality: The total assessment amount for the five subdivisions for FY2020/21 is estimated to be $75,866 with an expense budget of $88,227. Such deficit spending is intentional in order to reduce fund balance to a level adequate for funding maintenance and repairs specific to each subdivision. The proposed total assessment in FY2020/21 represents a 9.5% increase over last year’s assessment. The increase for parcels in each subdivision ranges between $0.35 and $39.55 per single family home and $60.91 and $129.81 per commercial parcel. The cost for each subdivision, as well as a breakdown of the assessment by land use type, is provided in Exhibit B of the Neighborhood Water Quality Resolution.
Local Business Enterprise (LBE): Not applicable.