Item 1.10 - LMD 86-3 for FY 2017/2018 and Set Date for Public HearingG`t OF POlPi�1
C1. THE98COJ���;
City of Poway
COUNCIL AGENDA REPORT
APPROVED
APPROVED AS AMENDED
❑
(SEE MINUTES)
DENIED
❑
REMOVED
❑
CONTINUED
Resolution No.
DATE: May 16, 2017
TO: Honorable Mayor and Members of the City Council
FROM: Michael Obermiller, P.E., Director of Public Works
CONTACT: Eric Heidemann, Assistant Director of Public Works f04
Maintenance Operations
eheidemann@poway.org
SUBJECT: Engineer's Report and Resolution Declaring the Intention to
Levy and Collect Assessments Within Poway Landscape
Maintenance District 86-3 for Fiscal Year 2017/2018 and Set
Date for Public Hearing
Summary:
The California Landscape and Lighting Act of 1972 (ACT), and its amendments
(Proposition 218 and SB 919) allow for the collection of assessments from parcels
annexed into Landscape Maintenance District (LIVID) 86-3 for the purpose of
maintaining the District's public landscape improvements. In order to collect
assessments, Chapter 3 of the ACT requires a Resolution (Attachment A) declaring the
intention to levy and collect assessments and an Engineer's Report (Attachment B).
Fiscal Year 2017/2018 assessment rates shall remain unchanged from the Fiscal Year
2016/2017 rates.
Recommended Action:
It is recommended that the City Council: 1) adopt the attached Resolution declaring the
intention to levy and collect assessments within Poway Landscape Maintenance District
86-3 for Fiscal Year 2017/2018; 2) approve the corresponding Engineer's Report
outlining the assessments for Fiscal Year 2017/2018; 3) direct the City Clerk to publish
the approved Resolution one week following Council approval; and 4) set the public
hearing for June 20, 2017.
Discussion:
Landscape Maintenance District 86-3 was formed on May 20, 1986, to maintain
landscape improvements required as conditions of approval for the various subdivisions
or developments included within the District boundaries. Each subdivision and/or
development listed below was required to annex into the District as a condition of
property development either through the final map process or by Council Resolution.
1 of 23 May 16, 2017, Item # 1.1D
Engineer's Report; Intention to Levy within LMD 86-3 for FY17/18; Set Public Hearing
May 16, 2017
Page 2
District 86-3 Zone A includes the following residential developments:
';TRACT :.:. _ .: rP-ROJECT`NAME. _�
TM
3994
TTM
88-03
TTM
94-02
The Pond
Sycamore Springs
Poway Oaks
Zone B (non-residential [commercial] developments) includes the following:
,_'TRACT. PROJECTNAME
TPM
90-04
TTM
90-05
Under Bldg. Permit
DR
98-07NAR 98-11
TPM
01-06
DR
05-05
Wal-Mart
Creekside Plaza
SteinMart Plaza (New Tenant)
Poway Hyundai
Hillside Village Apartments
Solara Apartments
Section 22624 of the Streets and Highways Code requires the City Council to approve
an engineering report and adopt a Resolution of Intention prior to establishing a budget
each year. The Engineer's Report (Attachment B) outlines the proposed Fiscal Year
2017/2018 budget and resulting assessments.
There are currently 159 residential (Zone A) and 16 non-residential, 214.88 commercial
units, and two multi -residential, low-income housing apartments (Zone B) assessable
parcels in LMD 86-3. Fiscal Year 2017/2018 assessments are proposed to remain
unchanged from the Fiscal Year 2016/2017 rates of $163.00 per benefit unit per year
(or $13.58 per month) for Zone A and $75.31 per benefit unit per year (or $6.28 per
month) for Zone B.
Proposition 218, passed by the California voters on November 5, 1996, expands the
requirements for public notification and imposes the requirement of District balloting.
Beginning July 1, 1997, all existing, new, or increased assessments shall comply with
Article XIII D as added to the California Constitution. All parcels currently assessed
were annexed into the District by owner consent at the time of development. However,
this does not exempt assessment increases in future years. Subsequent increases in
such assessments shall be subject to the procedures and approval process set forth in
Section 4 of Article Xlll D.
The approved maximum assessment rate for Zone A is $163.00 per benefit unit and
Zone B is being assessed less than the maximum at $75.31 per benefit unit. In 1998,
property owners within the District received ballots for a proposed increase as specified
under Assessment Law. Both Zones were balloted for an increase in assessments with
2 of 23 May 16, 2017, Item # 1.10
Engineer's Report; Intention to Levy within LIVID 86-3 for FY17/18; Set Public Hearing
May 16, 2017
Page 3
annual cost indexing based on the annual San Diego Consumer Price Index (SD -CPI).
Zone A had a majority protest for the increase, and therefore, failed to pass the ballot.
Therefore, the assessment rate is proposed to remain unchanged from the Fiscal Year
1997/1998 rate and Zone A is exempt from the procedures and approval process set
forth in Section 4 of Article XIII D.
The failure of an assessment increase by ballot for Zone A in Fiscal Year 1998/1999 led
to a reduction of maintenance services. Although this District has received a reduced
level of service to meet the revenue received, the current contractor continues to
maintain these areas with proficient water management and plant preservation.
Zone B passed the 1998/1999 ballot allowing for the option of an annual increase based
on the San Diego Consumer Price Index on an as needed basis. Because projected
revenues are sufficient to fund anticipated budgetary needs, no increase to Zone B
(non-residential) parcel assessments is requested at this time. The assessment rate
levied by the District for Zone B may be less than the maximum amount in any given
year if not required to meet budgetary needs for that year. If the long term budgetary
needs of the District would require an increase in the rate greater than the maximum
assessment rate in order to meet those needs, then any proposed increase in the
maximum assessment rate would require property owning balloting procedures as
dictated by Article XIII D.
As required under Assessment Law (Landscape and Lighting Act of 1972 and its
amendments), an engineer's report and assessment recommendations must be
presented for City Council consideration and public comment on an annual basis. This
Report (Attachment B) has been found technically correct as presented.
Environmental Review:
This action is not subject to California Environmental Quality Act review.
Fiscal Impact:
Revenues collected at $163.00 per benefit unit for Zone A and $75.31 per benefit unit
for Zone B, for an estimated total of $42,099.70, will be used for the District's
maintenance costs during Fiscal Year 2017/2018. A General Fund contribution of
$7,556.57 ($1,260.08 for Zone A and $6,296.49 for Zone B) will be made based upon
average square footage maintenance costs for landscaped medians and right-of-ways
that provide general benefit to the City.
Public Notification:
None.
3 of 23 May 16, 2017, Item # 1.10
Engineer's Report; Intention to Levy within LIVID 86-3 for FY17/18; Set Public Hearing
May 16, 2017
Page 4
Attachments:
A. Resolution Declaring the Intention to Levy and Collect Assessments Within
Poway Landscape Maintenance District 86-3 for Fiscal Year 2017/2018
B. 2017/2018 Engineer's Annual Levy Report
Reviewed/Approved By:
Wendy Kaserman
Assistant City Manager
Reviewed By:
Morgan Foley
City Attorney
Approved By,
Tina M. White
City Manager
4 of 23 May 16, 2017, Item # 1.10
RESOLUTION NO. 17-
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF POWAY, CALIFORNIA,
DECLARING THE INTENTION TO LEVY AND COLLECT
ASSESSMENTS WITHIN POWAY LANDSCAPE MAINTENANCE
DISTRICT 86-3 FOR FISCAL YEAR 2017/2018
WHEREAS, the City Council of the City of Poway desires to levy and collect
assessments within Poway Landscape Maintenance District 86-3 for the purpose of
maintaining, servicing, and operating public landscape facilities located within the
territory comprised of said district as shown in Exhibit A of the Engineer's Report that is
on file in the City Clerk's Office, pursuant to the Landscape and Lighting Act of 1972,
and attached hereto; and
WHEREAS, assessments will not increase from the Fiscal Year 2016/2017
assessment rate of $163.00 per benefit unit for Zone A and $75.31 per benefit unit for
Zone B; and
WHEREAS, under Article XIII D, Section 4 of the California Constitution, a City
general benefit contribution has been calculated as the average General Fund
expenditure on a per square foot basis for the maintenance of landscaped medians and
right-of-ways. This general benefit contribution for Zones A and B have been calculated
to be $1,260.08 and $6,296.49, respectively; and
WHEREAS, under Article XIII D, Section 5(b) of Proposition 218 (adopted by
general vote on November 5, 1996), the collection of Fiscal Year 2017/2018
assessments is exempt from the procedures and approval process set forth in Section 4
of Article XIII D, in that the assessment was imposed pursuant to a petition signed by
the persons owning all of the parcels subject to the assessment at the time the
assessment was initially imposed; and
WHEREAS, the public interest and convenience require the maintenance,
service, and operation of public landscaping within said territory.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway
as follows:
Section 1: The foregoing recitals are true and correct and the City Council so
finds and determines.
Section 2: Proposed assessments are as detailed in the Engineer's Report for
Poway Landscape Maintenance District No. 86-3 for Fiscal Year 2017/2018.
Section 3: Pursuant to the Streets and Highways Code, a public hearing will
be held on June 20, 2017, by the City Council to consider the levying and collection of
the proposed assessments.
5 of 23 ATTACHMENT A May 16, 2017, Item # 1.10
Resolution No. 17 -
Page 2
Section 4: The City Clerk shall cause this Resolution to be published in the
Poway News Chieftain, a newspaper of general circulation in the City of Poway.
PASSED, ADOPTED AND APPROVED by the City Council of the City of Poway
at a regular meeting this 16'" day of May, 2017.
Steve Vaus, Mayor
ATTEST:
Nancy Neufeld, CMC, City Clerk
STATE OF CALIFORNIA )
) SS
COUNTY OF SAN DIEGO )
I, Nancy Neufeld, CMC, City Clerk, of the City of Poway, do hereby certify under penalty
of perjury that the foregoing Resolution No. 17- was duly adopted by the City Council at
a meeting of said City Council held on the 16'" day of May, 2017, and that it was so
adopted by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
Nancy Neufeld, CMC, City Clerk
City of Poway
6 of 23 May 16, 2017, Item # 1.10
City of Poway
Landscape Maintenance
Assessment District 86-3
2017/2018 ENGINEERS ANNUAL LEVY REPORT
INTENT MEETING: MAY 16, 2017
PUBLIC HEARING: JUNE 20, 2017
WWILLDAN
Financial Services
Attachment B May 16, 2017, Item # 1.10
AFFIDAVIT FOR THE ENGINEER'S ANNUAL LEVY REPORT
Landscape Maintenance District 86-3
City of Poway
San Diego County, State of California
This Report describes the District and services therein including the improvements,
budgets, parcels and assessments to be levied for Fiscal Year 2017/2018, as they existed
at the time of the passage of the Resolution of Intention. Reference is hereby made to the
San Diego County Assessor's maps for a detailed description of the lines and dimensions
of parcels within the District. The undersigned respectfully submits the enclosed Report
as directed by the City Council.
Dated this I day of ��l/ 2017.
Willdan Financial Services
Assessment Engineer
On Behalf of the City of Poway
Byy:
Beatrice Medina
Project Manager, District Administration Services
By:
7� rrt?li�C
Richard KopeckyR. C. E. # 16742
*V EXP CE 2y�I "Jif
Ute
OF
8 of 23 May 16, 2017, Item # 1.10
TABLE OF CONTENTS
1. OVERVIEW__....................................................................................................1
A. INTRODUCTION.................................................................................................1
B. COMPLIANCE WITH CURRENT LEGISLATION..............................................1
C. IMPROVEMENTS AUTHORIZED BY THE 1972 ACT.......................................2
ll. DESCRIPTION OF THE DISTRICT....................................................................3
A. BOUNDARIES OF THE DISTRICT....................................................................3
B. DESCRIPTION OF THE DISTRICT IMPROVEMENTS......................................3
C. PROPERTIES BENEFITING FROM IMPROVEMENTS.....................................4
Ill. METHOD OF APPORTIONMENT......................................................................4
A. GENERAL..........................................................................................................4
B. BENEFIT ANALYSIS..........................................................................................5
C. ASSESSMENT METHODOLOGY......................................................................8
D. MAXIMUM ASSESSMENT RATE......................................................................9
IV. DISTRICTBUDGETS.......................................................................................10
A. DESCRIPTION OF BUDGET ITEMS................................................................10
B. ZONE A BUDGET............................................................................................11
C. ZONE B BUDGET............................................................................................12
APPENDIX A - DISTRICT ASSESSMENT DIAGRAM............................................13
APPENDIX B - 201712018 ASSESSMENT ROLL...................................................14
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/. OVERVIEW
A. INTRODUCTION
The City of Poway ("City") annually levies and collects special assessments in order to
maintain the improvements within the Landscape Maintenance District 86-3 ("District").
formed May 20, 1986. The District is levied pursuant to the City of Poway Resolution No. 00-
034 (Policies for Landscape Maintenance Districts) and the Landscape and Lighting Act of
1972, Part 2 of Division 15 of the California Streets and Highways Code ("1972 Act'), in
compliance with California Constitution Article XIIID ("Article XIIID"). The 1972 Act and Article
XIIID are collectively referred to herein as "Assessment Law".
This Engineer's Annual Levy Report ("Report') describes the District, any annexations. or
changes to the District including substantial changes to the District improvements, and the
proposed assessments for Fiscal Year 2017/2018. The proposed assessments are based on
the estimated cost to maintain the improvements that provide special benefits to properties
within the District. The costs of improvements and the annual levy include all expenditures,
deficits, surpluses, revenues. and reserves. Each parcel is assessed proportionately for only
those improvements provided and for which the parcel receives benefit based on an
established method of apportionment
The word "parcel." for the purposes of this Report, refers to an individual property assigned
its own Assessor's Parcel Number by the County of San Diego ("County") Assessor's Office.
The County Auditor/Controller uses Assessor's Parcel Numbers and specific Fund Numbers,
to identify on the tax roll. properties assessed for special district benefit assessments.
Following consideration of public comments and written protests at a noticed public hearing,
and review of the Report, the City Council may order amendments to the Report or confirm
the Report as submitted. Following final approval of the Report, and confirmation of the
assessments. the Council may order the levy and collection of assessments for Fiscal Year
2017/2018 pursuant to the 1972 Act- In such case, the assessment information will be
submitted to the County Auditor/Controller, and included on the property tax roll for each
benefiting parcel for Fiscal Year 2017/2018
B. COMPLIANCE WITH CURRENT LEGISLATION
Pursuant to the 1972 Act, the City Council annually conducts a public hearing to accept public
comments and testimony, and to approve the annual assessments to be levied on the County
tax roll for the fiscal year. All assessments contained in this Report and to be approved by
the City Council have been prepared in accordance with the 1972 Act and are in compliance
with the provisions of Article XIIID of the Constitution of the State of California ("Proposition
218")
The City has reviewed the provisions of Article XIIID and has made the following findings and
determinations:
Pursuant to Article XIIID. Section 5. certain existing assessments are exempt from the
substantive and procedural requirements of Article XIIID. Section 4, and property owner
balloting for the assessments is not required until such time that the assessments are
increased. Since the District assessments were imposed pursuant to a petition signed by the
persons owning all of the parcels subject to the assessments at the time the assessments
were initially imposed. Article XIIID Section 5 (b) exempts the existing assessment amounts
2017/2018 City of Poway Landscape Maintenance Distnct 86-3 Page 1 c' '4
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(approved original assessment rates including any applicable annual escalation factor) from
the procedural requirements of Article XIIID, Section 4
The provisions of Article XIIID do not alter the non -conflicting provisions of the 1972 Act As
such, the method of apportionment described in this Report utilizes commonly accepted
assessment engineering practices consistent with the 1972 Act and the provisions of Article
XIIID. The proposed assessments for the current fiscal year are less than or equal to the
adjusted maximum assessment rate previously approved and adopted for the District. The
application of this adjusted maximum assessment rate for the various land uses within the
District is described in more detail in Section III D of this Report. Any proposed assessment
that exceeds the adjusted maximum assessment rate is considered an increased
assessment Pursuant to the provisions of Article XIIID, all new or increased assessments
(the incremental increase) are subject to both the substantive and procedural requirements
of Article XIIID. Section 4
C. IMPROVEMENTS AUTHORIZED BY THE 1972 ACT
As applicable or may be applicable to this proposed District. the 1972 Act defines
improvements to mean one or any combination of the following.
• The installation or planting of landscaping.
• The installation or construction of statuary. fountains. and other ornamental
structures and facilities.
• The installation or construction of public lighting facilities.
• The installation or construction of any facilities which are appurtenant to any of the
foregoing or which are necessary or convenient for the maintenance or servicing
thereof, including. but not limited to, grading, clearing, removal of debris, the
installation or construction of curbs, gutters, walls, sidewalks, or paving, or water,
irrigation, drainage, or electrical facilities.
• The maintenance or servicing, or both, of any of the foregoing.
• The acquisition of any existing improvement otherwise authorized pursuant to this
section.
Incidental expenses associated with the improvements including, but not limited to:
• The cost of preparation of the Report. including plans. specifications. estimates,
diagram, and assessment,
• The costs of printing, advertising, and the publishing. posting and mailing of
notices,
• Compensation payable to the County for collection of assessments.
• Compensation of any engineer or attorney employed to render services.
• Any other expenses incidental to the construction, installation, or maintenance and
servicing of the improvements.
• Any expenses incidental to the issuance of bonds or notes pursuant to Section
22662.5: and,
• Costs associated with any elections held for the approval of a new or increased
assessment
The 1972 Act defines "Maintain" or "maintenance" to mean furnishing of services and
materials for the ordinary and usual maintenance. operation. and servicing of any
improvement. including:
Repair, removal, or replacement of all or any part of any improvement
2017/2018 City of Poway Landscape Maintenance District 86-3 Page 2 of 14
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• Providing for the life. growth, health. and beauty of landscaping, including cultivation,
irrigation. trimming. spraying, fertilizing. or treating for disease or injury
• The removal of trimmings. rubbish, debris. and other solid waste.
• The cleaning, sandblasting, and painting of walls and other improvements to remove
or cover graffiti.
ll. DESCRIPTION OF THE DISTRICT
A. BOUNDARIES OF THE DISTRICT
The District Boundary Map and Assessment
reference and made a part of this Engineer's
Office of the Public Works Department of the
inspection during normal business hours.
Diagram, which are incorporated herein by
Report, are on file with the Special Districts
City of Poway and are available for public
The Boundary Map shows the District boundary and the general location of District
improvements.
On February 25, 1992. by Council Resolution No. 92-039. Landscape Maintenance District
86-3 was divided into two zones 86-3 Zone A for residential and 86-3 Zone B for commercial.
Assessments for each zone of the District (LMD 86-3A and B) are being calculated by applying
the zones' approved maximum assessment rate times the total units within each District zone.
No new improvements or assessed parcels were added to the District during Fiscal Year
2016/2017.
District 86-3 Zone A (159 residential parcels assessed), includes the following developments
TTM 88-03 Sycamore Springs
TTM 9402 Poway Oaks
District 86-3 Zone B (16 non-residential parcels, 205.936 commercial units, and 2 multi -
residential. low-income housing apartments having 40.36 units) consists of the following
TPM 90-04
Wal Mart
TTM 90-05
Creekside Plaza
Under Bldg. Permit
SteinMart Plaza/New Tenant
DR 98-07NAR 98-11
Poway Hyundai
TPM 01-06
Hillside Village Apartments
DR 05-05
Solara Aoartments
B. DESCRIPTION OF THE DISTRICT IMPROVEMENTS
Facilities to be maintained by Zone A of the District are defined as landscape improvements
within the right-of-ways and open space areas associated with annexed subdivisions and
which are adjacent to portions of Pomerado Road, Old Pomerado Road. Beeler Creek, Metate
Lane. Oak Knoll and Sage View Roads. including natural open space areas within the
2017/2018 City of Poway Landscape Maintenance District 86-3 Page 3 of 14
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associated subdivisions. Facilities to be maintained by Zone B of the District are defined as
landscape improvements within the right-of-ways and adjacent to portions of Poway. Midland.
and Community Roads.
Walls and fences adjacent to private property are to be maintained by the adjacent property
owners The District/City. prior to commencement of work. shall approve repairs or
reconstruction of any walls or fences adjacent to the District landscape areas. Should the
property owners desire to include major repairs or reconstruction within the District's
responsibilities, the property owners are required to submit a petition to initiate the balloting
process set forth in Article XIIID. Section 4.
Landscape maintenance performance standards and specifications have been developed by
the City to assure quality maintenance of landscape assessment district properties. A recent
evaluation of the level of quality has been conducted, and the current maintenance levels
meet the City's landscape maintenance standards.
C. PROPERTIES BENEFITING FROM IMPROVEMENTS
The properties determined to receive benefit are those lots or parcels that, as a result of
development or redevelopment finance, construct, install. and/or establish landscape
improvements within public right-of-ways or public easements (permanent public
improvement) or adjoining lots or parcels that, as a result of development or redevelopment,
receive access or are immediately adjacent to lots or parcels which contain landscape
improvements maintained by a landscape maintenance district.
Special benefit, as defined in Assessment Law and in this Report, shall be assessed to those
properties determined to receive benefit from the District's improvements.
fll METHOD OF APPORTIONMENT
A. GENERAL
The 1972 Act permits the establishment of assessment districts by agencies for the purpose
of providing certain public improvements that include the construction. maintenance and
servicing of public lights, landscaping and appurtenant facilities. The 1972 Act further
requires that the cost of these improvements be levied according to benefit rather than
assessed value:
The net amount to be assessed upon lands within an assessment district may be
apportioned by any formula or method which fairly distributes the net amount among
all assessable lots or parcels in proportion to the estimated benefits to be received by
each such lot or parcel from the improvements.
The formula used for calculating assessments in this District therefore reflects the
composition of the parcels, and the improvements and services provided, to fairly apportion
the costs based on benefit to each parcel.
In addition, Article XIIID requires that a parcels assessment may not exceed the reasonable
cost of the proportional special benefit conferred on that parcel. Article XIIID provides that
only special benefits are assessable and the City must separate the general benefits from
the special benefits A special benefit is a particular and distinct benefit over and above
general benefits conferred on the public at large, including real property within the district.
The general enhancement of property value does not constitute a special benefit.
2017/2018 City of Poway Landscape Maintenance District 86-3 Page 4 of '4
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B. BENEFIT ANALYSIS
Each of the improvements, the associated costs and assessments within the District has
been reviewed, identified and allocated based on the special benefit parcels receive from
such improvements pursuant to the provisions of Article XIIID and the 1972 Act. All
improvements associated with this District have been identified as necessary. required
and/or desired for the orderly development of the properties within the District to their full
potential consistent with the proposed development plans. As such. these improvements
would be necessary and required of individual property owners for the development of such
properties, and the ongoing operation, servicing and maintenance of these improvements
would be the financial obligation of those properties Therefore. the improvements and the
annual costs of maintenance and operation of the improvements are of special benefit to the
properties.
All the lots or parcels are established at the same time once the conditions regarding the
improvements and the continued maintenance are met. As a result, each lot or parcel within
the District receives a special and distinct benefit from the improvements and to the same
degree.
Over time, the improvements continue to confer a particular and distinct special benefit upon
the lots or parcels within the District because of the nature of the improvements. The proper
maintenance of the improvements and appurtenant facilities reduces property related crimes,
especially vandalism, against properties in the District All of the above mentioned factors
also contribute to a specific benefit to each of the parcels within the District.
The method of apportionment (method of assessment) is based on the premise that each
assessed parcel within the District receives benefit from the improvements However, each
individual improvement element has its own distinct benefits both specific and general The
special benefits associated with the improvements within the District are as follows:
Special Benefit
The special benefits associated with the landscaping improvements in the District are
specifically
• Enhanced desirability of properties through association with the improvements,
• Improved aesthetic appeal of properties providing a positive representation of the
area,
• Enhanced adaptation of the urban environment within the natural environment
from adequate green space, open space areas and landscaping:
• Environmental enhancement through improved erosion resistance, dust and
debris control, and fire prevention,
• Increased sense of pride in ownership of property within the District resulting from
well-maintained improvements associated with the properties:
• Reduced criminal activity and property -related crimes (especially vandalism)
against properties in the District through well-maintained surroundings and
amenities including abatement of graffiti: and.
• Enhanced environmental quality of the parcels by moderating temperatures,
providing oxygenation and attenuating noise.
General Benefit
Assessment Law mandates that the City assess for special benefit only, and the City
shall separate general benefit from special benefit. General benefit is defined as
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services provided to the public -at -large Special benefit is defined as services provided
at a level greater than the services provided to the public -at -large.
The City's general benefit to the public -at -large is determined as the average
expenditure from the General Fund for the maintenance of landscaped medians and
right-of-ways, calculated on a per square foot basis The City shall make a general
benefit contribution to a district based on the City's average rate of expenditure from the
General Fund for the various types of improvements applied to the square footage of
similar types of improvements within the District.
Zone A No new improvements were added during Fiscal Year 2016/2017
Zone B No new improvements were added during Fiscal Year 2016/2017:
Landscaped median 22,913 Sq. Ft.
The City shall annually conduct an audit to determine the average expenditure from the
General Fund for the maintenance of landscape improvements within the public right-
of-ways or public easements, calculated on a per square foot basis. The general benefit
for Fiscal Year 2017/2018 is determined to be:
$0.2748 per square foot for landscaped medians, and
$0 1142 per square foot for landscaped right-of-ways
As part of the audit. the City shall determine the average expenditure from the General
Fund for the maintenance of District landscape improvements. Based on an increase
of 1 94 percent in the San Diego Consumer Price Index (the average of All Urban
Consumers and Urban Wage Earners and Clerical Workers), comparable services
provided by the City of Poway staff for general landscape services, the general benefit
for Fiscal Year 2017/2018 will increase from Fiscal Year 2016/2017, based on the
contribution rate per square foot. at a maximum for this District:
sq
sq
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All other maintenance, operation, administrative. and incidental costs which exceed the
City's general benefit contribution to the public -at -large are of special benefit and
assessed to the District.
The City shall have an option as to how it will make the general benefit contributions to
the District. The City shall make its general benefit contribution by either:
• providing irrigation water to the District for irrigation of LIVID improvements in
an amount equal to the City's general benefit contribution, or
paying directly to the District from the General Fund a dollar amount equal to
the City's general benefit contribution.
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C. ASSESSMENT METHODOLOGY
The total cost of special benefit for maintenance of the public improvements funded by the
District will be assessed to the various parcels in the District in proportion to the benefit units
assigned to each parcel. in relationship to the total benefit units assigned to all parcels being
assessed.
Residential Land Uses
All residential subdivisions shall be assessed proportional to special benefit received based
on one (1) benefit unit per residential dwelling unit.
Non-residential Land Uses
All non-residential parcels shall be assessed proportional to special benefit received based
on the average planned dwelling unit density throughout the urban areas of the City (four
dwelling units per acre), the equivalent of four (4) benefit units per acre
Non-residential land uses typically provide services and/or employment opportunities for the
City that benefit all lands throughout the City. Since these non-residential land uses can
occur throughout the City, the planned, average density of residential dwelling units per acre
for the urban areas of the City has been calculated. The non-residential land uses are
considered to dislocate residential units. Therefore, the number of residential dwelling units
dislocated, based on the average dwelling units per acre, has been assigned to non-
residential lands. This method determines an equivalent benefit to residential land uses.
Appendix B details the calculation of the average residential units per acre planned within
the urban areas of the City. Urban areas have been defined as the parcels receiving water
and sewer services.
In -Lieu Assessments
Under provisions of City policy, parcels may contribute in -lieu assessments by providing
equivalent maintenance services for District improvements within public right-of-ways or
public easements immediately adjacent to their lands.
No parcels within the District are scheduled to contribute in -lieu assessments in Fiscal Year
2017/2018.
Non -benefiting Parcels
All public and private streets, avenues. lanes, roads, drives, courts, alleys, all public
easements and right-of-ways, all dedicated open space parcels, and District maintained
parcels are determined to not receive special benefit from the District's improvements and
are therefore not assessed.
Benefit Units (BUs)
As described above, the number of assessable benefit units attributable to each parcel
receiving special benefit has been calculated and can be found in the Assessment Roll
(Appendix B).
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The assessment methodology utilized is as described above Based on this methodology,
the benefit units, and the Fiscal Year 2017/2018 proposed assessment for each parcel were
calculated and are shown in the Assessment Roll (Appendix B).
• The calculated Fiscal Year 2017/2018 assessment for Zone A is proposed to remain
at the Fiscal Year 2016/2017 assessment rate of $163.00 per benefit unit
• The calculated Fiscal Year 2017/2018 assessment for Zone B is proposed to remain
at the Fiscal Year 2016/2017 assessment rate of $75.31 per benefit unit
D. MAXIMUM ASSESSMENT RATE
The approved maximum assessment rates for the District zones are $163 00 per benefit unit
for Zone A Zone B is being assessed at $75 31 per benefit unit which is less than the
maximum approved for this District. In 1998, property owners within the District received
ballots as specified under Assessment Law. Zones A and B were balloted for an increase in
assessments, including yearly cost indexing adjustments based on the San Diego Consumer
Price Index (SD -CPI). An assessment rate increase for Zone A failed under the balloting
process of property owners. Zone B property owners voted for a decrease in assessment
rates, and also approved any necessary future assessment increases based on related SD -
CPI.
The maximum assessment rate establishes an approved upper limit on the annual
assessment, however. the assessment rate levied by the District may be less than the
maximum amount in any given year if not required to meet the budgetary needs for that year.
If the long term budgetary needs of the District would require an increase in the rate greater
than the maximum assessment rate in order to meet those needs. then any proposed
increase in the maximum assessment rate would require property owning balloting
procedures as dictated by Article XIIID
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IV. DISTRICT BUDGETS
A. DESCRIPTION OF BUDGET ITEMS
The 1972 Act provides that the estimated costs of the improvements shall include the total
cost of the maintenance and servicing of the improvements for the entire Fiscal Year
2017/2018, commencing July 1, 2017 and ending June 30, 2018, including incidentals, which
may include reserves to operate the District
The 1972 Act also provides that the amount of any surplus, deficit, or contribution be included
in the estimated cost of improvements. The net amount to be assessed on the lots or parcels
within the District is the total cost of maintenance and servicing with adjustments either
positive or negative for reserves, surpluses, deficits, and/or contributions.
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B. ZONE A BUDGET
EXPENDITURES:
Maintenance $9.224 $13.489 $17,320
Water/power 7,311 19,140 19.140
Administration3.770 4,140 5.090
Total Expenditures $20,305 $36,769 $41,550
REVENUES
City General Benefit Contribution
$1,218
$1.236
$1,260
Assessment Revenue
25,910
25.917
25.917
Interest Revenue
488
350
470
Grant Revenue
0
0
0
Capital Project Closeout
0
0
0
Miscellaneous
0
0
0
Total Revenues
$27,616
$27,503
$27,647
DISTRICT STATISTICS
Total Number of Parcels
Total Parcels Levied
Total EBU's
Rate per EBU (Equivalent Benefit Units)
Maximum Rate per EBU
OPERATING RESERVE
Beginning Reserve Balance
Transfers In/Out (CIP)
Reserve Fund Activity
Estimated Ending Reserve Balance
159
159
159
$163.00
$163.00
$10,214 $10.153 $18,385
(7,372) 17,498 16.293
7.311 (9,266) (13,903)
$10,153 $18,385 $20,755
CAPITAL IMPROVEMENT RESERVE
CIP Fund Balance
$39,198
$46,570
$29,072
CIP Transfers In/Out (Operating Reserve)
7,372
(17.498)
(16,293)
CIP Projectsi5'
0
0
(450)
Xafitnated Ending CIP Reserve Balance
$46,570
$29,072
$12,329
)1) Actual figures per Finance Fiscal Year 2015/2016 activity sheets
(2) Approved budget.
(3) Proposed budget.
)4) Includes cost allocation for City staff support services.
5; Replace backflow, device.
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C. ZONE B BUDGET
EXPENDITURES
Maintenance
$10.399
$14,032
S16440
Water/power
4,721
6,370
6.370
Administration 4
3.600
3,850
4 760
Total Expenditures
$18,720
$24,252
$27,570
REVENUES
City General Benefit Contribution
$6.088
$6,177
$6.297
Assessment Revenue
16,187
16,183
16.183
Interest Revenue
1,470
1,330
1,700
Grant Revenue
0
0
0
Capital Project Closeout
0
0
0
Miscellaneous
0
0
0
Tota! Revenues
$23,744
$23,690
$24,180
DISTRICT STATISTICS
Total Number of Parcels
Total Parcels Levied
Total EBU's
Rate per EBU (Equivalent Benefit
Units)
Maximum Rate per EBU
OPERATING RESERVE
Beginning Reserve Balance
Transfers In/Out (CIP)
Reserve Fund Activity
Estimated Ending Reserve Balance
CAPITAL IMPROVEMENT RESERVE
16
16
21488
$7531
$7531
$7,087 $9,360 S12126
(2.751) 2,200 5.049
5.024 566 13.390)
$9,360 $12,126 $13,785
CIP Fund Balance $144,457 $147208 $145.008
CIP Transfers In/Out (Operating Reserve) 2,751 (2.200) (5.049)
CIP Pro)ects,5, 0 0 (450)
Estimated Ending CIP Reserve Balance $147,208 _$145,008 $139,509
Actual figures per Finance Fiscal Year 2015/2016 activity sheets
(1) Approved budget.
(3) Proposed budget.
(4) Includes cost allocation for City staff support services.
15j Replace backflow device.
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APPENDIX A -DISTRICT ASSESSMENT DIAGRAM
A District Diagram has been prepared for the District in the format required by the 1972 Act,
and is on file with the Special Districts Office of the Public Works Department and by
reference is made part of this Report. The Assessment Diagram is available for inspection at
the Special Districts Office of the Public Works Department, during normal business hours.
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APPENDIX 8 - 201 712018 ASSESSMENT ROLL
Parcel identification, for each lot or parcel within the District. shall be the parcel as shown
on the County Assessor's Map for the year in which this Report is prepared.
Non -assessable lots or parcels include land principally encumbered by public or utility
rights-of-way and common areas. These parcels will not be assessed
A listing of parcels assessed within the District along with the proposed assessment
amounts has been identified as "Fiscal Year 2017/2018 Assessment Roll', and is on file
with the City Clerk and is by reference made a part of this Report
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