TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Brian Ambrose, Community Services Director
PREPARED BY: Lea Kolek, Parks and Community Services Manager
SUBJECT:
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Levy of Annual Assessments for Murrieta Community Services District
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RECOMMENDATION
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Adopt Resolution No. CSD 25-283 entitled: A Resolution of the Board of Directors of the Murrieta Community Services District, (1) Declaring its Intention to Levy the Annual Rates and Charges for Services Within the Murrieta Community Services District, Fiscal Year 2025/2026, (2) Preliminarily Approving the Engineer’s Annual Levy Report for Community Service District for Fiscal Year 2025/2026, and (3) Designating the Time and Place for the Public Hearing on These Matters.
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PRIOR ACTION/VOTE
In 1997, the costs, rates, and charges associated with the services and improvements by the Community Services District were established following the process required by Proposition 218.
On June 6, 2023, the City Council and the Board of Directors adopted a joint Resolution No. 23-4671 approving the Fiscal Years 2023/24 and 2024/25 Operating Budgets and approving the schedule of authorized positions (Vote: 4-0-1).
On May 7, 2024, the Board of Directors of the Community Services District adopted Resolution No. CSD 24-279 declaring its intention to levy annual rates and charges for certain services within the Murrieta Community Services District for Fiscal Year 2024/25, preliminarily approving the engineer’s annual levy report for the Community Services District for Fiscal Year 2024/25 and designating the time and place for the public hearing on these matters (Vote: 5-0).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
BACKGROUND
Each year, the Board of Directors is required to initiate proceedings and adopt resolutions to authorize the levy and collection of annual assessments to be placed on the County tax rolls for parcels within the boundaries of the Murrieta Community Services District (CSD). These assessments provide funding for costs and expenses required for the following services provided by the CSD:
a) Local Benefit Zones: Personnel and expenditures required for maintenance, servicing, and operations of the local parks and open space areas, local perimeters 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 1993, 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 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 Constitutional amendments set forth in Proposition 218 (approved by California voters in November 1996), the costs and the rates and charges associated with the services and improvements by the CSD were re-established in 1997 to provide the services listed above.
The CSD is comprised of fourteen Local Benefit Zones. The rates and charges (assessments) levied on 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 CSD 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 assessments for each Zone vary depending on the services received, from $45.44 for flood/drainage control and street sweeping to $751.16 for 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 within Attachment 2 for the amounts of each Zone’s assessment.
In 1997, the CSD Board of Directors initiated and conducted property owner protest ballot proceedings establishing the charges for 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 for “Exempt Services” for flood/drainage control have been established 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 are mailed to each parcel owner subject to the annual rates and charges, indicating that an Engineer’s Report has been prepared and filed, and the time and place of the Public Hearing to be held before the Community Services Board of Directors. This year, the Public Hearing will be held on July 1, 2025. Following consideration of the public comments and any written protest, the Board may order amendments to the Engineer’s Report or approve the report and confirmation of the rates and charges. After the Public Hearing, the Board of Directors will be asked to order the levy and collection of charges for Fiscal Year 2025/26.
As discussed below, presently, the General Fund subsidizes the operation of several zones. Collectively, the General Fund subsidy amount for the applicable zones equates to approximately $627,000 per year.
FISCAL IMPACT
The total Fiscal Year 2025/26 CSD levy assessment amount for Exempt Services and Local Benefit Zones is estimated to be $2,854,180.17. The levy and collection of these annual assessments will help pay for the costs associated with the various services provided by the Community Services District to properties within its boundaries. The revenue budgets for the estimated levy are to be included in the upcoming Fiscal Year 2025/26 and 2026/27 Operating Budgets.
Zone A (Fund 181), Zone D (Fund 184), Zone E (Fund 185), and Zone H (Fund 188) currently require a budgetary transfer from the General Fund to cover their respective shortfalls. The remaining zones, Zone B (Fund 182), Zone C (Fund 183), Zone F (Fund 186), and Zone I (Fund 189), have available Unassigned Fund Balance to cover their respective shortfalls.
ATTACHMENTS
1. Resolution No. CSD 25-283
2. Map - CSD Charges by Zone