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Home My WebLink About2006/08/01 Item 11 COUNCIL AGENDA STATEMENT it Item , Meeting Date 8/1/2006 ITEM TITLE: PublIC Heanng to consIder testImony for FY ~006l~fl07 le\ y of assessments and collection against those assessments for City Open Spac<c District 18. Resolution Space Distrrct 18. Levying the assessments and collectibles for Open SUBMITTED BY: Acting Director of Engineerin~ ~. REVIEWED BY: Interim CIty Manager rJI (4/Sths Vote: Yes_No~ This is one of three (3) companion agenda items to the primary Open Space assessments agenda item, which provides all general background information and detail on the proposed Open Space District assessments for FY 2006/2007. The present item includes information specific to Open Space District 18. RECOMMENDATION: That Council conduct the public hearing and adopt the resolution levying the assessments and collectibles for Open Space District 18. BOARDS/COMMISSIONS: N/A DISCUSSION: Open Space District 18 is located at the east end of East Naples Street (Attachment 1). Table 1, below compares the current year's assessment to the proposed assessment for FY 2006/2007. Table 1. Historical and Proposed FY 2006/07 Assessments/Collectibles Open Space District or Zone FY 04105 FY 05106 18 $ 360.45 $ 373.61 FY 05/06 $ 253.00 $ 83,955.00 111 Assessment may be set at or below this amount without being subject to a vote and majority protest. The City of Chula Vista Municipal Code makes the distinction between the assessment and the amount that the City may collect against the assessment (i.e., the collectible). The assessments for FY 2006/07 are proposed at the FY 2005/06 amounts adjusted by the inflation factor of 3.66% pursuant to the Municipal Code. (The inflation factor is based upon the lower of two separate, published inflation factors.) In the mid-l990's (and for all Open Space Districts established after that date), Council approved the assessments with an inflation factor. Since that date, Council may annually increase the assessment by this inflation factor without this increase being subject to a protest vote under Proposition 218. The collectible, on the other hand, is the amount to be actually collected from the property owner and is equal to, or lower than, the proposed assessment. As detailed in Attachment 2, the collectible is based on the budget, the reserve requirement, savings and fund balances, earned interest, and prior years' savmgs. 11-1 Page 2, Item 11- Meeting Date 08/01/2006 Reserves Whlle staff recommends using savings li'om pnor years when necessary to sllpplement collections, it is important to note that staff also strives to maintain at least a 50% reserve. The Municipal Code allows reserves between 50%-100%. A minimum of 50% reserve is needed to provide the funds to pay for costs during the first six months of the fiscal year before the collectibles have been paid via the first installment of the tax bill. Reserves in excess of 50% are used, in part, to maintain as stable a collectible as practicable while retaining sufficient funds to offset future anticipated increases. Reserves also allow the City to return excess funds to property owners in the form of a lower collectible. Table 2 outlines the recommended reserve amount for Open Space District No. 18 Table 2. Historical and Proposed FY 2006/07 Expenditure Budget/Reserve Budget Open Space District or Zone '-. . & ..',n'diture B;;'iti, et" ; . , : Rese~e B~d<. at %" ,'; Max Assess Revenue 168,466.80 $ District Budget 115,51000 $ Surplus I Shortfall 52,956.80 FY 05106 100% Proposed FY 06107 100% Increase I Decrease 0% 18 $ NOTICE: The public hearings were noticed pursuant to Government Code 6061, which requires that notice be published in a newspaper general of circulation at least 10 days before the public hearing. Plans, specifications, and assessment rolls are on file in the Engineering Department. RESOLUTION: Approval of the resolution approves the levy of assessments and collectibles as recommended. CONFLICT OF INTEREST: Staff has reviewed the property holdings of the City Council and has found a conflict in that Council Member Steve Castaneda has holdings within 500' of the District that is the subject of this action. FISCAL IMPACT: The full cost of providing maintenance services in this district totals $115,510.00. This entire amount is recovered through the OSD collectible and reserves, as detailed on the District Cost Summary worksheets (Attachment 2). Attachments: 1. District Maps 2. Cost Summaries 11-2 o %~~~t~ ~~. " i;:::= H" ~-V)~" ~. ' ~ ~~!I~! \== ' ~ I'D ..... \::>' ;.'111:, ~ / I::::\~ .)Y. ~ u ~II::?~~ . ~ rJJ - -3 o .c:: u c: tS ~ co 1""1 =It:: l ~ ) \ ~ ~ I; 1~_';c1 ... ~u ~ ~ =\= t= i == t= I:::} RJ r~ .illlf'JJJln=- cTl T: ~ S ::s ;:: 1:= ~ 1Ff g:" I / / eJ-"{ ~ ::: x.f::: Z ~ ~ \= t- \;: ~--- ,~j.~(:\B~~~2fj ~ S /; ~ \'> y / $ ~e ~'o '<<- ?J..''#., f3 Trr;:l~ t:E:J 11 '--J t::: }- >;: ,~~B ~ YB ~K;Jl~ - [q c:- '<(I =-) '9r:: \.-'.- ~ a 'Y-r ~ I-- !z W I,!i,./ ~ B ~ I=G;! .;c - ~ ! ,I. \ '""\?O\::; ~ ~ \:; \\\% .. ~ ~ \-- \ \\\1.. :::;- b ~ z -~~ :!!Ju t-r- u -~~ .... I, 1 \Qj ~ ~~ ~.. B~P::- ,/ q,gp8 ('5 a!l8 ~ ~- E-m . l' ~ - --. ~f .~ tr I!J~ @@ 'S I:S ..\p ~ ",~r ro'?,'?J- 1\ ~ I I UJD I ~ ~,.. '\f~ ~\ ~~ 0:: ~ \:: 'f''L '" :i! g ~ ~ It= OJ ~ ""!;C L1J c If ) CITY OF CHULA VISTA OSD 18 (Rancho del Sur) 2006/07 Fiscal Year District Cost Summary ATTACHMENT 2- Personnel Services Utility Charges Trash Collection & Disposal Fees Water Charges Services to maintain structures, grounds City Staff Services Contract Services Landscape Supplies Matenals to maintain structures, grounds Backflow Certification Professional Services Supplementals Other Commodities Advertising Transfer' Corporate Yard Debt Services Storm Maintenance Special Maintenance Fund Estimated Maintenance Cost Percent change from prior year $000 $0.00 996 00 996 00 000 000 40,35900 40,359.00 5,17000 5,170.00 24,30300 23,595.00 38,734 00 37,207.92 986 00 986.00 1,200 00 1,200.00 000 0.00 1,32500 1,200.00 1,23000 1,230 00 000 0.00 000 0.00 1,207 00 1,209.00 0.00 0.00 0.00 0.00 $115,510.00 $113,152.92 $115,510.00 $113,152.92 100% 100% 0.00 0.00 147.14800 116.256.72 $83,872.00 $110,049.12 435.00 435.00 $192.81 $252.99 -24% -17% ;$19~'IIQ $2$:3,;00 $83,95500 $110,055.00 $3117.211 $387.28 $26$;$4' 2% -15% $000 996 00 000 40,35900 5,170 00 22,36500 58.775 00 986 00 1,200.00 000 1,200 00 480 00 000 0.00 1,328 00 0.00 0.00 $132,859.00 Reserve Requirement (1) Reserve Percent Special Reserve Fund Balance (2) Net Assessment (3) $93,001.30 70% 0.00 93,315.00 $132,545.30 Equivalent Dwelling Units (EDU's) 435.00 Collectible/EDU Percent change from prior year $304.70 14% COLLECTIBLE. even $ amount Revenue from even dollar payment ASSESSMENT Assessment with CPI (4) $132,675.00 $373.61 3% (1) Reserve Requirement = Estimated Maintenance Cost x Reserve Percent (2) Estimated fund balance as of June 30 of each year (3) Net Assessment = Estimated Maintenance Cost + Reserve Requirement + Additional Reserve - Fund Balance (4) CPI Change for FY 2006/2007 = 3.66% 11-4 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA LEVYING THE ASSESSMENTS AND COLLECTIBLES FOR OPEN SPACE DISTRICT NO. 18 WHEREAS, prior to the adoption of this resolution, the City Council caused the fomlation of various districts under and pursuant to state law; and WHEREAS, pursuant to Article 4, Chapter I, part 2 of Division i5 of the California Streets and Highways Code, also known as "Landscaping and Lighting Act of 1972" and Chula Vista Municipal Code Chapter 17.07, NBS Government Finance Group, DBA NBS has prepared and filed the annual reports for all existing Open Space Maintenance Districts in the City; and WHEREAS, on July 18,2006, Council approved these rcports and set August 1,2006 as the date for the publtc hearing; and WH EREAS, the proposed assessment for Fiscal Y car 2006/2007 is as follows: 05D18 $ 83,955.00 FY 04105 FY 05/06 FY 06/07 FY 05/06 FY 06/07 Rancho del Sur $ 360.45 $ 373.61 $ 387.28 $ 253.00 $ 193.00 NOW, THEREFORE, BE IT RESOLVED as to all Open Space and Maintenance Districts herein referenced that the City Council of the City of Chula Vista does hereby find that written protests against the proposed assessment have not been made by owners representing more than one-half of the area of land to be assessed from the improvement; confirm the diagram and assessment contained in the Engineer's Report; and order the open space and maintenance facilities to be maintained. The adoption of this resolution constitutes the levy of assessments and collectibles as proposed in the Engineer's Report for the 2006/2007 fiscal year and sets forth hereinabove for Open Space District 18 Presented by Approved as to form by Leah Browder Acting Director of Engineering ~~. tL ~v~-k Ann Moore City Attorney 11-5