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:
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Murrieta Community Services District Levy of Annual Assessments
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RECOMMENDATION
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Conduct the public hearing; and
Adopt Resolution No. CSD 24-281 entitled: A Resolution of the Board of Directors of the Community Services District of the City of Murrieta, California, (1) Amending and/or Approving the Engineer’s Annual Levy Report for the Levy and Collection of Rates and Charges within the Murrieta Community Services District for Fiscal Year 2024/25, and (2) Ordering the Levy and Collection of Rates and Charges within the Murrieta Community Services District for Fiscal Year 2024/25; and
Direct the Board Secretary to file the levy with the County Auditor upon adoption.
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PRIOR ACTION/VOTE
On May 7, 2024, the Community Services Board of Directors adopted Resolution No. CSD 24-279, declaring its intention to levy the annual rates and charges for services within the Murrieta Community Services District for FY 2024/25, preliminarily approving the engineer’s annual levy report for Community Service District for FY 2024/25, and designating the time and place for the Public Hearing on these matters 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 Murrieta City Council, acting as the Community Services District (CSD) Board of Directors (Board), adopted Resolution No. CSD 24-279 approving the preliminary Engineer’s Levy Report and initiated proceedings for the levy and collection of annual assessments to be placed on the County tax rolls for parcels within the city limits. There were no proposed changes by the Board, and the final Engineer’s Annual Levy Report, including the annual assessments, is presented herein for approval. These assessments provide funding for costs and expenses required for the following services provided by the CSD:
a) Local Benefit Zone: Personnel and expenditures required for maintenance, servicing, and operations of the local parks and open space areas, local perimeter and parkways, and local street lighting.
b) Exempt Services: Personnel and expenditures required for maintenance, servicing, and operations of flood/drainage control improvements, and street sweeping services.
The CSD was formed in 1992 with rates and charges set and established annually pursuant to Community Services District Law 61000, Section 61621 (repealed in 2005 and replaced with Section 61115), Title 6, Division 3 of the California Government Code (“CSD Code”) and in compliance with the substantive and procedural requirements of the California State Constitution Article XIIID. The parcels receiving this assessment are identified by their own Assessor’s Parcel Number (APN). The County Auditor/Controller uses APNs to identify the tax roll properties charged for this special district benefit. In accordance with the State Constitutional Amendments set forth in Proposition 218 (approved by California Voters in November 1996), the costs, and rates, and charges associated with the services and improvements by the CSD were re-established for the services listed above.
“Local Benefit Zones” are comprised of fourteen Zones. The rates and charges (Assessments) to each APN in its respective Zone are directly related to the improvements, the number and types of services provided, the cost associated with those improvements and services, and the number and types of parcels that benefit from those improvements. Much of the development within the City consists of planned developments referred to as Specific Plans. Most of the Zones can be identified geographically by Specific Plan boundaries or by individual tract boundaries. 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. The annual assessment for each Zone varies and is based on the services received, from $45.44 for just flood/drainage control and street sweeping to $751.16, which also includes landscape maintenance and local street lighting in a commercial business center. Please refer to the charts on pages 18-20 of the Engineer’s Report for each Zone assessment.
In 1997, the Board initiated and conducted property owner protest ballot proceedings establishing the charges for the local improvements and services in each Zone. The property owners approved the local benefit assessments for each Zone that established a maximum rate for each Zone. These assessments have not increased for this next fiscal year and continue to be levied at the rate approved by the property owners in 1997. Any future increase to the approved assessments will require additional property owner ballot proceedings and approval of the affected properties.
The annual assessments are for “Exempt Services” for flood/drainage control at $39.72 per APN and street sweeping at $5.72 per applicable APN in specific residential tracts and developments. These improvements and services continue to be levied at the same rates and methods of apportionment established prior to Proposition 218.
Pursuant to the CSD Code, annual notices were mailed to each parcel owner subject to the annual rates and charges indicating that an Engineer’s Report has been filed and the time and place of the Public Hearing to be held before the Board. Following consideration from public comments and any written protest presented to the Board, the Board may order amendments to the Engineer’s Report or approve the report and confirmation of the rates and charges. The Board may then order the levy and collection of the charges for Fiscal Year 2024/25 through approval of the presented resolutions.
FISCAL IMPACT
The CSD levy assessment amount for Fiscal Year 2024/25 is estimated to be $2,812,581.26. The levy and collection of these annual assessments will help pay for the costs associated with the services provided by the Community Services District. The Adopted Fiscal Year 2024/25 Operating Budget includes revenue and expenditure budgets for each CSD Zone.
ATTACHMENTS
1. Resolution No. CSD 24-281