Report Prepared by: Ken Elwin, Director of Public Works
Title
SUBJECT: Maintenance Districts Assessment Ballot Proceeding - Northwood Village, East College Homes, Moss Landing & Ridgeview Meadows
REPORT IN BRIEF
Consider authorizing an assessment ballot proceeding and setting a public hearing for Monday, March 19, 2018, for the Northwood Village, East College Homes, Moss Landing, and Ridgeview Meadows Maintenance Districts, to obtain property owner approval in advance of increase in annual levy assessments.
RECOMMENDATION
City Council - Adopt a Motion:
A. Adopting Resolution 2018-04, a Resolution of the City Council of the City of Merced, California authorizing an assessment ballot proceeding for the Northwood Village, East College Homes, Moss Landing, and Ridgeview Meadows Maintenance Districts, and;
B. Setting the public hearing for Monday, March 19, 2018, to obtain property owner approval prior to the increase in annual assessment levy to cover operation and maintenance costs to each identified District; and,
C. Approving a supplemental budget appropriation from the Unreserved Fund Balance of the General Fund in the amount not to exceed $1,990, to cover the assessment balloting noticing costs.
Body
ALTERNATIVES
1. Approve as recommended by the Public Works Director; or,
2. Refer back to staff for further study; or,
3. Deny.
AUTHORITY
Chapter 26 of Part 3 of Division 7 of the State of California Streets and Highway Code provides the applicable general law for Maintenance Districts; and,
Article I (alternative method for the levy of benefit assessments) of Title 13 Division VIII, of the Merced Municipal Code (MMC) dealing with Maintenance Districts, provides for subsequent modification to exiting Maintenance Districts; and,
Initiative Measure (Proposition 218, Sections 2,3,4,5, and 6) approved at the November 5, 1996 election, and also known as, the “Right to Vote on Taxes Act,” provides for assessment ballot proceedings consideration.
DISCUSSION
After careful analysis of the budgets, it has been determined the Northwood Village, East College Homes, Moss Landing, and Ridgeview Meadows Maintenance Districts do not have sufficient fund balances required to cover the necessary maintenance and operational service costs to these Districts (see Attachment 1).
Public Works staff continues to be proactive in maximizing available revenue by turning off irrigation systems during non-summer months, suspending the monthly landscape maintenance services contract when funding dictates, reducing employee maintenance labor hours at each Districts’ storm pump station, working with volunteer service groups when available, and utilizing City park personnel on occasion.
Although these austerity measures were adopted, an assessment ballot proceeding is necessary at this time to sustain existing landscaped areas and cover storm drain pump maintenance and operation expenses.
Listed below is a summary of the current Fiscal Year 2017/2018 annual assessment levy, per unit, and the proposed for Fiscal Year 2018/2019:
|
DISTRICT NAME |
CURRENT ASSESSMENT |
PROPOSED ASSESSMENT |
|
Northwood Village |
$39.46 |
$79.15 |
|
East College Homes |
$27.64 |
$82.97 |
|
Moss Landing (residential) |
$18.38 |
$42.49 |
|
Moss Landing (school) |
$1,074 |
$2,482 |
|
Ridgeview Meadows |
$32.48 |
$65.01 |
The associated District boundary maps are attached for your reference (see Attachment 3).
In order to increase property owner levies a special assessment ballot proceeding must be held to obtain property owner approval in advance of any increase in annual benefit assessment.
The process for Districts that require an increase in assessments are as follows:
• The Public Works Department prepares the engineer’s reports and annual budget costs;
• City Council adopts a resolution authorizing an assessment ballot proceeding and sets date for Public Hearing;
• Council opens the public hearing to determine voter approval of increased assessments. Following the public hearing Council shall consider all objections or protests, if any;
• The public hearing is continued to a subsequent meeting to allow staff the required time necessary to open and tally sealed ballots;
• Following the continued public hearing Council adopts a resolution approving, confirming, and adopting the reports and budgets based on the results of the tallied ballots.
Ballot letters, notices, forms, and District boundary maps will be mailed to each identified property owner on record informing them of the proposed increase in levy and other prudent balloting information (see Attachment 4).
In addition, prior to the public hearing scheduled for Monday, March 19, 2018, staff will hold an informational meeting to answer questions from the public regarding the proposed assessment increase.
Voting is determined by the proportionate share of each ballot cast based on a property’s assessed value of public improvement and services received. Law prohibits opening or tallying of the ballots prior to the close of the Public Hearing.
If ballots are successful, Council will adopt a resolution approving, confirming, and adopting the Engineer’s Reports for that particular District, and the approved levy will appear on the property owners’ Merced County tax bill for Fiscal Year 2018/2019.
If ballots are unsuccessful, there would be insufficient funds to cover costs associated with the operation of the District and the current level of service will be reduced to match existing revenue with the current annual levy remaining in effect.
IMPACT ON CITY RESOURCES
Balloting expenses are recovered in the approved assessment levy from the District’s operating fund, if successful. Conversely, if unsuccessful the General Fund will cover the expense.
The City Attorney's office has prepared the necessary resolution authorizing an assessment ballot proceeding to increase levies to property owners on record within the Northwood Village, East College Homes, Moss Landing, and Ridgeview Meadows Maintenance Districts; and setting a public hearing for Monday, March 19, 2018 (see Attachment 5).
Council will have the opportunity to consider a motion on the various budgets following the close of the public hearing.
ATTACHMENTS
1. Budget Summaries
2. Proposed FY 18/19 Engineer’s Reports
3. District Boundary Maps
4. Balloting Documents
5. Resolution 2018-04