TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Brian Ambrose, Community Services Director
PREPARED BY: Lea Kolek, Parks and Community Service Manager
SUBJECT:
title
Consolidate Landscape and Lighting District Levy of Annual Assessments
end
RECOMMENDATION
recommendation
Conduct the Public Hearing;
Adopt a Resolution 24-4771 entitled: A Resolution of the City Council of the City of Murrieta, California, Confirming Assessments and Providing for Annual Assessment Levy for Fiscal Year 2024/25 in the Murrieta Consolidated Landscaping and Lighting District; and
Direct the City Clerk to file the assessment roll with the County Auditor.
body
PRIOR ACTION/VOTE
On June 20, 2023, the City Council adopted Resolution No. 23-4690, confirming assessments and providing for an annual assessment levy for the Murrieta Consolidated Landscaping and Lighting District for Fiscal Year 2023/24 (Vote: 3-1-1).
On May 7, 2024, the City Council adopted Resolution No. 24-4737 and Resolution No. 24-4738, ordering the preparation of the Consolidated Landscaping and Lighting District Engineer’s Annual Levy Report and declaring the City’s intent for the levy and collection of annual assessments for the Consolidated Landscaping and Lighting District for Fiscal Year 2024/25. The Resolution set a public hearing for July 2, 2024 (Vote: 5-0).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
BACKGROUND
On May 7, 2024, the City Council adopted resolutions to initiate proceedings allowing for the levy and collection of annual assessments to be placed on the County tax rolls for parcels within the City limits. The proposed assessments are based on the estimated costs and expenses associated with the regular annual maintenance, operation, and servicing of the landscaping and lighting improvements within each Zone that resulted from the development of properties within the Community Services District (CSD).
For Fiscal Year 2024/25, the Murrieta Consolidated Landscaping and Lighting District (Consolidated District) consists of 30 primary benefit zones, with one (1) zone as dormant (activated only should the HOA fail) and four (4) zones representing a total of thirteen sub-zones. Each of the corresponding zones and sub-zones funds specific improvements that benefit parcels within those zones and sub-zones. The parcels receiving this assessment are identified by their own Assessor’s Parcel Number (APN). The County Auditor/Controller uses APNs on the tax roll to identify properties charged for this special district benefit. The improvements and the costs of those improvements are identified and budgeted separately for each Zone based on the planned services, operation, administration, and maintenance of the Consolidated District improvements authorized under the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code (1972 Act).
Prior to Fiscal Year 1999/00, local landscaping and lighting improvements associated with new developments and various areas of the City were funded by rates and charges levied through the City’s CSD. These specific improvements are still provided and funded through the CSD today. Although the City could have continued using the CSD as the mechanism for maintaining local landscaping and lighting improvements, it was recognized that the CSD was not the most efficient way to address the rapid development within the City. Therefore, between Fiscal Year 1999/00 and Fiscal Year 2003/04, the City of Murrieta formed various landscaping and lighting districts under the provisions of the 1972 Act and the California Constitution Article XIIID, to address local improvements associated with these developments.
In Fiscal Year 2003/04, the City consolidated the seventeen original districts into a single district pursuant to Section 22605 (d) of the 1972 Act and established the Murrieta Consolidated Landscaping and Lighting District. As part of the consolidation, the original districts were established as zones, and any benefit zones within those original districts were established as sub-zones. The consolidation was a necessary step toward reducing the administrative complexities of multiple staff reports and resolutions for each district to be reviewed and adopted each year. The consolidation did not directly impact or change the maximum assessment rates previously approved by the property owners.
The annual assessments associated with local improvements are budgeted separately for each zone and charged to only those APNs or parcels that benefit from those improvements and services. With the formation of each original district and annexation into the Consolidated District, an annual adjustment of two (2) or three (3) percent was approved by the property owners. The annual assessment for each zone varies based upon the services received and the number of parcels within that zone from $69.62 for Zone 22 streetlights only to $1,579.56 for Zone 3 for full maintenance and streetlights of that industrial/commercial area. While some of the zones have no increases for the next fiscal year, those with increases range from $5.00 to $155.36 annually, with LLD 31 Willow Springs, approved by Council January 2024 as the newest LLD with an assessment of $201 per Benefit Unit. Please refer to the charts on pages 47-49 of the Engineer’s Report (Attachment 2) for each Zone and Sub-zone assessment. The July 2, 2024, Public Hearing is scheduled for the consideration of any protests or objections in reference to the annual levy of assessments, the extent of the maintenance services, and any other matters affecting those property owners.
Notice of the public hearing was published in the Press Enterprise, San Bernardino Sun, and Daily Bulletin on May 17, 2024, which is at least ten (10) days prior to the hearing.
FISCAL IMPACT
The Murrieta Consolidated Landscaping and Lighting District proposed levy amount for Fiscal Year 2024/25 is estimated to be $5,052,155.43. The levy and collection of these annual assessments will pay for the costs associated with the services provided by the Community Services District. The revenue and expenditure budgets for each district are included in the Fiscal Year 2024/25 Operating Budget, with the exception of LLD 31. The budget for that District will be included in the Fiscal Year 2024/25 Budget Update.
ATTACHMENTS
1. Resolution No. 24-4771
2. Engineer’s Annual Levy Report for the Murrieta Consolidated Landscaping and Lighting District