Report Prepared by: Juan Olmos, Public Works Manager - Tax Services
Title
SUBJECT: Report to Allow for Public Input on the Various Maintenance Districts’ Engineer’s Reports and Budgets for Fiscal Year 2023/2024 During the Public Meeting
REPORT IN BRIEF
Considers public input on the various Maintenance Districts’ budgets during the public meeting, without taking action on the determination of assessment levy until the close of the Public Hearing scheduled for Tuesday, June 20, 2023.
RECOMMENDATION
City Council - Adopt a motion seeking public input on the Fiscal Year 2023/2024 Maintenance Districts’ budgets, without taking action until the Public Hearing is closed on June 20, 2023.
Body
ALTERNATIVES
1. Approve as recommended by the Director of Public Works; seek public input on the Maintenance Districts’ budgets, without taking action until the public hearing is closed on June 20, 2023; or,
2. Return to staff with specific direction; 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.
CITY COUNCIL PRIORITIES
Addresses City Administrative Priority for Maintenance District Funding.
DISCUSSION
The Fiscal Year 2023/2024 budgets and engineer’s reports on the various Maintenance Districts are complete and expenses are balanced with available revenue.
They are available upon request for review and have been submitted to the City Clerk’s office, as required by MMC Sections 13.62.130 and 13.62.150.
Several Districts will continue to benefit from existing operating reserve funds, as well as a consumer price index (CPI) increase adjustment of 6.2%. Attachment 1 is a summary of the budgets and assessment levies.
LED Light Conversion
The budget includes $197,462 in carry over funding for LED streetlight conversions. The benefits for converting to LED lights are energy efficiency, longer lifespan of the light, a quicker start of the light, and better visibility for residents after dark.
The funding for this project has been budgeted in the Districts below, which also shows the breakdown of cost to each District.
|
District |
Amount |
|
Las Brisas |
$42,926 |
|
Paulson Place |
$7,265 |
|
Ronnie |
$2,642 |
|
Fahrens Park II |
$113,589 |
|
Sequoia Hill |
$7,265 |
|
Sky Moss |
$14,529 |
|
Vista Del Sol |
$9,246 |
|
Total |
$197,462 |
Sidewalk, Curb/Gutter Replacement
The budget includes $50,000 in carry over funding for sidewalk and curb/gutter replacement and repairs. Issues with lifting sidewalks and curbs/gutters need to be addressed for safety concerns, aesthetics, and improved function.
The funding for this project has been budgeted in the Districts below, which also shows the breakdown of cost to each District.
|
District |
Amount |
|
Silverado |
$15,000 |
|
Sunset West |
$25,000 |
|
Sequoia Hill |
$10,000 |
|
TOTAL |
$50,000 |
Tree Trimming
The budget includes $75,000 for tree trimming and beautification. Trees will be identified for inspection, pruning, and removal as necessary.
The goal each year is to ensure trees are safe and healthy to minimize conflicts with pedestrians, vehicle traffic, and dwellings. This will enhance the existing character and beauty of the areas.
Funding has been budgeted in the Districts below, which also shows the breakdown of cost to each District.
|
District |
Amount |
|
Fahrens Park II |
$50,000 |
|
Davenport |
$15,000 |
|
Yosemite Gateway |
$10,000 |
|
Total |
$75,000 |
Reduction of Landscape Maintenance Services
Landscape maintenance services provided by contractors at Campus North, Northwood Village, Merced Auto Center, Downtown, and Ridgeview Meadows will be reduced due to the minimum Fund Reserve balances in these Districts.
Campus North will receive a one-time clean up during the year. This District has a previous failed assessment ballot hearing to increase the annual assessment levies that were not approved by the property owners by a majority vote.
Northwood Village will have scheduled maintenance monthly. This budget is benefitting from having irrigation services shut off which ultimately increases their Fund Reserve balances.
Merced Auto Center will have scheduled maintenance monthly. This District has a previous failed assessment ballot hearing to increase the annual assessment levies that were not approved by the property owners by majority vote.
Downtown will continue to have a dedicated Park Worker to this District, and will receive contract landscape maintenance services bi-weekly. The maintenance of a healthy, esthetically pleasing landscaped environment to this vibrant section of the city is essential.
Ridgeview Meadows will have scheduled maintenance monthly. This District has a previous failed assessment ballot hearing to increase the annual assessment levies that were not approved by the property owners by majority vote.
Staff will continue to explore ways of reducing expenditures, as well as being proactive in maximizing revenues. As in year’s past staff will explore the availability of partnering with volunteer service groups for future landscape activities.
Pleasanton Park, Hansen Park and Olivewood
Landscape maintenance services at Pleasanton Park will continue to be completed on a quarterly basis. Hansen Park and Olivewood will continue to be completed on a will-call basis, commensurate with available funding. Due to the quantity of mature landscape within these Districts, and the disparity between expenditures and revenue, maintaining existing vegetation within available funding continues to be a challenge.
Staff will continue to explore ways of reducing expenditures, as well as being proactive in maximizing revenues. As in year’s past staff will explore the availability of partnering with volunteer service groups for future landscape activities.
History and Past Actions
Maintenance Districts were originally established to pay for the operation and maintenance costs associated with maintaining storm drainage systems, street lighting, and aesthetically pleasing landscaping to open spaces such as park strips and street center-islands.
Property owners within these identified Districts are levied annual assessments against each lot or parcel of land to cover these expenses.
Proposition 218, enacted by the voters in 1996, requires the City to conduct an assessment ballot proceeding in order to levy increased assessments, beyond the allowed adjustment, based on the United States Department of Labor’s All Urban Consumers-Western Region CPI report.
Each year City Council must hold both a public meeting and public hearing on the various Maintenance Districts’ budgets for the coming fiscal year before final adoption of the budget.
The approval process for Districts with no increase in assessment above the allowable CPI is as follows:
• Public Works Department determines annual budget costs by District;
• Engineer prepares annual report and assessment spread;
• Council adopts resolution approving Engineer’s Reports and sets dates for public meeting and public hearing;
• Council seeks public input at public meeting, but takes no other action;
• Following a public hearing, Council adopts resolution approving, confirming, and adopting Engineer’s Reports.
The approval process for Districts with an increase in assessment above the allowable CPI is as follows:
• Public Works Department determines annual budget costs by District;
• Engineer prepares annual report and assessment spread;
• If the proposed increase in annual assessments is greater than the amount allowed under Proposition 218, then an assessment ballot proceeding must be held. Assessments remain at the previous year’s rate, until the legal ballot process is followed;
• Notices and ballots are mailed 45-days prior to the scheduled public hearing;
• Council holds a public hearing to determine voter approval of increased assessments and the public hearing is continued to a subsequent meeting to allow time to open and tally the sealed ballots;
• Following the “continued” public hearing, Council adopts a resolution approving, confirming, and adopting the Engineer’s Reports based on the results of the ballots.
In closing, operating budgets are balanced with available revenue and/or fund balance reserves. The CPI adjustment increase to budgets with previously held successful ballot proceedings is 6.2%.
Council will have the opportunity to consider a motion on the various budgets following the close of the public hearing scheduled for Tuesday, June 20, 2023.
IMPACT ON CITY RESOURCES
Funding is provided in the Proposed Fiscal Year 2023-2024 Budget.
ATTACHMENT
1. Budget Summary Report FY 23-24
2. Maintenance Districts Presentation