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Item 10 - Reso Establishing Assessments for Poway LMD 86-2 to be Collected on San Diego County Property Tax Roll for FY 23-24LMD 86-2 Zone A includes the following residential developments: TRACT PROJECT NAME TTM 4185R Sunrise Ranch TTM 87-12 Silver Ridge (aka Poway Villas) TTM 89-03 Eagle Pointe (aka La Paz Summit) TPM 97-15 Paradise Development TTM 89-05 Southern Hills (aka Poway Summit Estates) LMD 86-2 Zone B includes the following residential developments: TRACT PROJECT NAME TTM CUP 83-02 06-09 (M) Sycamore Creek Loma Cabrillo, LLC Fiscal Year 2023-24 assessments for Zone A are proposed to remain unchanged at the Fiscal Year 2022-23 rate of $186.16 ($15.51 per month) per benefit unit per year; Zone B Fiscal Year 2023-24 assessments are proposed to increase from $337.56 to $363.58 (from $28.13 per month to $30.30 per month) per benefit unit per year. In 1998 and 2009, a ballot for an assessment increase with annual cost indexing based on the annual CPI in Zone A failed. As a result, it was necessary to reduce service levels to ensure LMD 86-2 expenses did not exceed projected revenue. Consequently, Zone A service level was reduced to level C. Landscape maintenance service level for Zone A will remain at level C. Service level C consists of performing landscape maintenance (e.g., irrigation inspection, removal of trash and debris, trimming of shrubs, fertilizing, mowing, edging, pruning, sweeping) for respective areas within Zone A on a monthly basis. Zone B passed the 1998 ballot allowing for the option of an annual increase based on the CPI. Because projected expenditures are exceeding revenues, an increase of 7.71 percent, the annual change in the CPI, is requested at this time for Zone B. Landscape maintenance service level for Zone B will remain at level A. Service level A consists of performing landscape maintenance (e.g., irrigation inspection, removal of trash and debris, trimming of shrubs, fertilizing, mowing, edging pruning, sweeping) for respective areas within Zone B on a weekly basis. City Council's approved Fiscal Year 2023-24 Engineer's Report is on file in the Office of the City Clerk, 13325 Civic Center Drive and the Department of Public Works, 14467 Lake Poway Road, Poway, California. Environmental Review: This action is not subject to review under California Environmental Quality Act (CEQA). Fiscal Impact: LMD 86-2 Zone A does not include a voter-approved inflater which puts pressure on service levels as expenses increase over time due to inflation while revenues do not. Fiscal Year 2023-24 LMD 86-2 Zone A assessment rate remains unchanged from the Fiscal Year 2022-23 rate of $186.16 per benefit unit per year. Revenue for LMD 86-2 Zone A is comprised of $20,478.00 from assessments, $687.00 in estimated interest earnings and $3,970.00 in General Fund contributions. 2 of 6 July 18, 2023, Item #10 RESOLUTION NO. 23- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, ESTABLISHING ASSESSMENTS FOR POWAY LANDSCAPE MAINTENANCE DISTRICT NO. 86-2 TO BE COLLECTED ON THE SAN DIEGO COUNTY PROPERTY TAX ROLL FOR FISCAL YEAR 2023-24 WHEREAS, City Council of the City of Poway desires to have Landscape Maintenance District assessments collected on the San Diego County Property Tax Roll; WHEREAS, pursuant to provisions of City of Poway Resolution No. 00-034 (Policies for Landscape Maintenance Districts) and Assessment law being "Landscape and Lighting Act of 1972" (being part 2 of Division 15 of the California Streets and Highways Code), applicable provisions of "Proposition 218" (being Article XIII C of the California Constitution), and provisions of "Proposition 218 Omnibus Implementation Act" (being California Senate Bill 919), and in accordance with the Resolution of Intention, being City of Poway Resolution No. 23-024 adopted by City Council of the City of Poway, County of San Diego, State of California, in connection with proceedings for Landscape Maintenance District No. 86-2, the Assessment Engineer for the City of Poway has submitted an Engineer's Report for the District as required by California Street and Highways Code, Section 22565; WHEREAS, on June 6, 2023, at a regular meeting of Poway's City Council, amounts to be collected have been set forth in a public Engineer's Report; WHEREAS, on July 18, 2023, City Council held a duly advertised public hearing to solicit comments from the public, both for and against, relative to this matter; and WHEREAS, this action is authorized by laws of the State of California. NOW, THEREFORE, BE IT RESOLVED by City Council of the City of Poway as follows: SECTION 1: The Assessment Rates for two (2) zones area as follows: Zone A: Zone B: $186.16 per benefit unit per year $363.58 per benefit unit per year SECTION 2: The sum of assessments to be collected on the Fiscal Year 2023-24 San Diego County Property Tax Roll to provide for the maintenance of landscape improvements within Zones A and B of Landscape Maintenance District No. 86-2 are as follows: Zone A: Zone B: $20,478.00 $61,081.00 SECTION 3: Under assessment law, the City of Poway's General Benefit Contribution has been calculated for Zone A as $3,970.00 and Zone B as $3,565.00. 4 of 6 II II ATTACHMENT A July 18, 2023, Item #10 Resolution No. 23- Page 2 PASSED, ADOPTED AND APPROVED at a Regular Meeting of City Council of the City of Poway, California on the 18th day of July, 2023 by the following vote, to wit: AYES: NOES: ABSTAINED: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Carrie Gallagher, CMC, City Clerk 5 of 6 July 18, 2023, Item #10