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Res 18-027 RESOLUTION NO. 18-027 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 83-1 FOR FISCAL YEAR 2018-19 WHEREAS, the City Council of the City of Poway desires to levy and collect assessments within Poway Landscape Maintenance District 83-1 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; WHEREAS, assessments will not increase from the Fiscal Year 2017-18 assessment rate of $118.48 per benefit unit for Zone A, $235.75 per benefit unit for Zone B and $496.16 per benefit unit for Zone C; 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 rights-of-way. This general benefit contribution for Zones A, B and C have been calculated to be $64,959.08; WHEREAS, under Article XIII D, Section 5(b)of Proposition 218(adopted by general vote on November 5, 1996), the collection of Fiscal Year 2018-19 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 and soundwalls 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. 83-1 for Fiscal Year 2018-19. Section 3: Pursuant to the Streets and Highways Code, a public hearing will be held on July 17, 2018, by the City Council to consider the levying and collection of the proposed assessments. 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. Resolution No. 18-027 Page 2 PASSED,ADOPTED AND APPROVED by the City Council of the City of Poway, California, at a regular meeting this 5th day of June 2018. teve Vaus, Mayor ATTEST: NS* Neufeld, CMC, City Clerk STATE OF CALIFORNIA ) SS COUNTY OF SAN DIEGO ) I, Nancy Neufeld, City Clerk of the City of Poway, California, do hereby certify under penalty of perjury that the foregoing Resolution No. 18-027 was duly adopted by the City Council at a meeting of said City Council held on the 5th day of June 2018, and that it was so adopted by the following vote: AYES: CUNNINGHAM, GROSCH, LEONARD, MULLIN, VAUS NOES: NONE ABSENT: NONE DISQUALIFIED: NONE .y4,/./?/1/� Nancy Neu{e d, MC, City Clerk City of Poway Resolution No 18-027 Page 3 City of Poway Landscape Maintenance Assessment District 83-1 2018/2019 ENGINEER'S ANNUAL LEVY REPORT INTENT MEETING: JUNE 5, 2018 PUBLIC HEARING: JULY 17, 2018 27368 Via Industna Suite 200 �W I LLDAN Temecula.CA 92590 T 951.587 35001800 755 6864 FINANCIAL SERVICES F 951.587.35101888 326 6864 Property Tax Information Une T.866 807 6864 Resolution No. 18-027 Page 4 AFFIDAVIT FOR THE ENGINEER'S ANNUAL LEVY REPORT Landscape Maintenance District 83-1 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 2018/2019, 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. In Dated this u 9 day of , 2018. Willdan Financial Services Assessment Engineer On Behalf of the City of Poway By: A.,, �- Susan Hemandez Project Manager, District Administration Services lidAtHaelreal Ri Richard Kopecky R. C. E. # 16742 to to fr�J Resolution No. 18-027 Page 5 TABLE OF CONTENTS I. OVERVIEW 1 A. INTRODUCTION 1 B. COMPLIANCE WITH CURRENT LEGISLATION 1 C. IMPROVEMENTS AUTHORIZED BY THE 1972 ACT 2 II. DESCRIPTION OF THE DISTRICT 3 A. BOUNDARIES OF THE DISTRICT 3 B. DESCRIPTION OF THE DISTRICT IMPROVEMENTS 4 C. PROPERTIES BENEFITING FROM IMPROVEMENTS 5 lU. METHOD OF APPORTIONMENT.. 5 A. GENERAL 5 B. BENEFIT ANALYSIS 6 C. ASSESSMENT METHODOLOGY 8 D. MAXIMUM ASSESSMENT RATE 9 IV. DISTRICT BUDGETS 9 A. DESCRIPTION OF BUDGET ITEMS 9 B. ZONE A BUDGET 10 C. ZONE B BUDGET 11 D. ZONE C BUDGET 12 APPENDIX A - DISTRICT ASSESSMENT DIAGRAM 13 APPENDIX B - 2018/2019 ASSESSMENT ROLL 14 Resolution No. 18-027 Page 6. WW I LLDAN FINANCIAL SERVICES I. 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 83-1 ("District"), formed June 14, 1983 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") has been prepared pursuant to Chapter 1, Article 4 and Chapter 3 of the 1972 Act, and presented to the City Council for their consideration and approval of the improvements and services to be provided within District. This Report describes the District, any proposed changes to the District including substantial changes to the District improvements, the parcels to be assessed, and the proposed assessments related thereto to fund the costs and expenses required to service and maintain designated improvements within the District that provide special benefits to those parcels for Fiscal Year 2018/2019. Annually, the City establishes the District's assessments based on the special benefit received by the properties in the District and the associated net special benefit expenses resulting from an estimate of the costs to maintain,operate and service the improvements in conjunction with available revenues including fund balances, general benefit contributions, additional City contributions, and current assessment limits. 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 2018/2019 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 2018/2019. 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: 2018/2019 City of Poway Landscape Maintenance District 83-1 Page 1 of 14 Resolution No. 18-027 Page 7 r-WWILLDAN FINANCIAL SERVICES 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 (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, 2018)2019 City of Poway Landscape Maintenance District 83.1 Page 2 of 14 Resolution No. 18-027 Page 8 i� W I LLDAN FINANCIAL SERVICES • 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. • 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. It DESCRIPTION OF THE DISTRICT A. BOUNDARIES OF THE DISTRICT The District Boundary Map and Assessment Diagram, which are incorporated herein by reference and made a part of this Engineer's Report, are on file with the Special Districts Office of the Public Works Department of the City of Poway and are available for public inspection during normal business hours. On February 25, 1992, by Council Resolution No. 92-039, Landscape Maintenance District 83-1 was divided into two zones: 83-1 Zone A for residential and 83-1 Zone B for commercial. 83-1 Zone C was created in Fiscal Year 2000/2001 with the annexation of the Kentfield Estates subdivision that contained separate and distinct improvements to be maintained by the District for the benefit of the Zone C parcels. Assessments for each zone of the District (LMD 83-1A, B and C) are being calculated by applying the zones' approved maximum assessment rate times the total units within each District zone. 2018/2019 City of Poway Landscape Maintenance District 83-1 Page 3 of 14 Resolution No 18-027 Page 9 WWI LLDAN FINANCIAL SERVICES District 83-1 Zone A is comprised of the residential parcels within the following developments. Tract Project Name TTMs 3495. 4113, 4191. 89-15 and TPM 89-18 Rancho Arbolitos TTM 3503 Adobe Ridge I and II TTM 3533 The Colonies TTM 3461 Casa Real. Unit 7 TTM 85-01 Rancho Espola TTM 84-04R Country Creek TTM 84-07 Woodland Hills TTM 86-05 Community 16 Villas (Poway 16) TTM 87-04 Park Village TTM 87-06 Cicero-Pacific TTM 88-05 Gateway/La Manda TTM 88-09 Carmel Vista TTM 86-04 Midland Estates TTM 99-01 aroma Estates TPM 89-09 Cusick TPM 99-05 Spyglass TTM 02-03 Lamagno TPM 03-05 Lamagno District 83-1 Zone B is comprised of the following non-residential developments Tract Project Name TPM 86-03 Twin Peaks Plaza CUP 92-05 Kindercare District 83-1 Zone C compnsed of the residential parcels within the following development Tract Pro-ect Name TTM 98-06 Kentfield Estates 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 adjacent to portions of Pomerado Road. Twin Peaks Road. Tierra Bonita Road. Midland Road, Espola Road, Community Road, and Carriage Road Facilities to be maintained by Zone B of the District are defined as landscape improvements within the right-of-ways and open space areas adjacent to portions of Pomerado Road. Camino del Norte. Ted Williams Parkway. and a portion of Twin Peaks Road Facilities to be maintained by Zone C are defined as landscape improvements. a masonry wall and bridged entry with ornate stone features within the right-of-ways adjacent to portions of Twin Peaks and Midland Roads 2018/2019 City of Poway Landscape Maintenance District 83-1 Page 4 of 14 Resolution No. 18-027 Page 10 � W I LLDAN FINANCIAL SERVICES 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 (other than those already included within Zone C of the District), 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. The City has defined the following service levels on the basis of how frequent landscaping maintenance is performed: Service Level A: Maintenance once a week. Service Level B: Maintenance once every other week. Service Level C: Maintenance once a month. Zone A, Zone B and Zone C are within Service Level C for Fiscal Year 2018/2019. 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. 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. 2018/2019 City of Poway Landscape Maintenance District 63-1 Page 5 of 14 Resolution No. 18-027 Page 11 WILLDAN NCIAL SERVICES In addition, Article XIIID requires that a parcel's 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. 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; 2018/2019 City of Poway Landscape Maintenance District 83-1 Page 6 of 14 Resolution No 18-027 Page 12 "W I LLDAN FINANCIAL SERVICES • 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 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 No new improvements were added during Fiscal Year 2017/2018: LANDSCAPE ELEMENT QUANTITY Landscaped Right-of-Ways 355,979 Sq. Ft Landscaped Right-of-Ways with Soundwall 28,250 Sq. Ft. Landscaped Median 51.586 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 2018/2019 is determined to be $0 2831 per square foot for landscape medians. $0 1176 per square foot for landscape right-of-ways. and 50 3006 per square foot for landscape right-of-ways with soundwall 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 3 01 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 2018/2019 will increase from Fiscal Year 2017/2018. based on the contribution rate per square foot. at a maximum for this District 355.979 sq. ft landscaped R/W X $0.1176 = $41.863 13 28,250 sq ft landscape R/W with soundwall X $0 3006 = $8.491 95 51.586 sq ft landscaped medians X $0 2831 = $14.604 00 2018/2019 City of Poway Landscape Maintenance District 83-1 Page 7 of 14 Resolution No. 18-027 Page 13 WW I LLDAN FINANCIAL SERVICES 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 LMD 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. 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 2018/2019. 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 2018/2019 City of Poway landscape Maintenance District 83-1 Page 8 of 14 Resolution No. 18-027 Page 14 I W I LLDAN 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). The assessment methodology utilized is as described above. Based on this methodology, the benefit units, and the Fiscal Year 2018/2019 proposed assessment for each parcel were calculated and are shown in the Assessment Roll (Appendix B). • The calculated Fiscal Year 2018/2019 assessment for Zone A is proposed to remain at the Fiscal Year 2017/2018 assessment rate of$118.48 per benefit unit. • The calculated Fiscal Year 2018/2019 assessment for Zone B is proposed to remain at the Fiscal Year 2017/2018 assessment rate of$235.75 per benefit unit. • The calculated Fiscal Year 2018/2019 assessment for Zone C is proposed to be $496.16 per benefit unit based on the needs of the unique landscaping and hardscape maintenance requirements of Zone C, and remains at the Fiscal Year 2017/2018 assessment rate. D. MAXIMUM ASSESSMENT RATE The approved maximum assessment rates for the District zones are$118.48 per benefit unit for Zone A, $235.75 per benefit unit for Zone B and $496.16 per benefit unit for Zone C. The District currently has no approved escalation factor for increasing the maximum assessment rates. 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 owner balloting procedures as dictated by Article XIIID. In 2018, property owners received ballots as specified under Assessment Law. All three zones were balloted for an increase in assessments with annual cost indexing based on the annual San Diego Consumer Price Index (SD-CPI). All three zones did not have a consensus for the increase, and therefore, failed to pass the ballot. /V. 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 2018/2019,commencing July 1, 2018 and ending June 30, 2019, 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. 2018/2019 City of Poway Landscape Maintenance District 83-1 Page 9 of 14 Resolution No 18-027 Page 15 WWI LLDAN FINANCIAL SERVICES B. ZONE A BUDGET Fiscal Year Fiscal Year Fiscal Year BUDGET ITEMS 2016/20171) 2017/2018(2) 2018/20193' EXPENDITURES: Maintenance $230,256 $126,399 $65,150 Water/power 90.212 90,553 32,980 Administration` 49.910 36,510 36,510 Total Expenditures $370,378 $253,462 $134,640 REVENUES City General Benefit Contribution $47.127 $48.048 $49,483 Assessment Revenue 165,885 165.517 164,806 Interest Revenue 1,907 1,850 1,850 Grant Revenue 0 0 0 4a Capital Project Closeout 0 0 0 Miscellaneous 0 0 0 Total Revenues $214.919 $215,415 $216,139 DISTRICT STATISTICS Total Number of Parcels 1,391 Total Parcels Levied 1,391 Total EBU's 1.391 Rate per EBU (Equivalent Benefit Units) $118.48 Maximum Rate per EBU $118.48 OPERATING RESERVE Beginning Reserve Balance $123,437 $185,189 $126,731 Transfers In/Out (CIP) 217,211 (20.411) (140,910) Reserve Fund Activity (155.459) (38.047) 81,499 Estimated Ending Reserve Balance $185,189 $126,731 $67,320 ' CAPITAL IMPROVEMENT RESERVE CIP Fund Balance $191,939 ($25,272) ($4,861) CIP Transfers In/Out(Operating Reserve) (217,211) 20,411 140.910 CIP Projects 0 0 0 Estimated Ending CIP Reserve Balance ($25,272) ($4,861) $136.049 )1) Actual figures per Finance Fiscal Year 2016/2017 activity sheets (2) Approved budget (3) Proposed budget (4) Includes cost allocation City staff support services 2018/2019 City of Poway Landscape Maintenance District 83-1 Page 10 of 14 Resolution No 18-027 Page 16 "WI LLDAN FINANCIAL SERVICES C. ZONE B BUDGET Fiscal Year Fiscal Year Fiscal Year BUDGET ITEMS 201612017o) 201712018(2) 2018/20193' EXPENDITURES: Maintenance $17,632 $28,380 $10,830 Water/power 730 4.080 500 'Administration: 8,070 5.260 5.523 Total Expenditures $26,432 $37,720 $16,853 REVENUES 'i City General Benefit Contribution $12,198 $12,435 $12,808 ,:Assessment Revenue 23,237 23,226 23,226 Interest Revenue 521 500 500 'I Grant Revenue 0 0 0 j Capital Project Closeout 0 0 0 i Miscellaneous 0 0 0 Total Revenues $35,956 $36,161 $36,534 DISTRICT STATISTICS Total Number of Parcels 15 'Total Parcels Levied 15 Total EBU's 98 52 Rate per EBU (Equivalent Benefit Units) $235.75 Maximum Rate per EBU $235.75 OPERATING RESERVE Beginning Reserve Balance $12,143 $13,216 $18.860 Transfers In/Out (CIP) (8,451) 7.203 (30,114) Reserve Fund Activity 9,524 (1,559) 19.681 Estimated Ending Reserve Balance $13,216 $18,860 $8,427 CAPITAL IMPROVEMENT RESERVE .CIP Fund Balance $43,920 $52,371 $45,168 CIP Transfers In/Out(Operating Reserve) 8,451 (7,203) 30,114 CIP Protects 0 0 0 Estimated Ending CIP Reserve Balance $52.371 $45.168 $75,282 00) Actual figures per Finance Fiscal Year 2016/2017 activity sheets (2) Projected budget (3) Proposed budget (4) Includes cost allocation City staff support services. 2018/2019 City of Poway Landscape Maintenance District 83-1 Page 11 of 14 Resolution No 18-027 Page 17 'fWILLDAN FINANCIAL SERVICES D. ZONE C BUDGET Fiscal Year Fiscal Year Fiscal Year BUDGET ITEMS 2016/20170) 201712018j2) 2018/2019(3) EXPENDITURES: Maintenance $4.280 $13,840 $2,270 Water/power 1,829 3.220 1,830 l Administration , 1.860 1,040 1,092 Total Expenditures $7.969 $18,100 $5,192 REVENUES City General Benefit Contribution $2,541 $2.590 $2.668 "Assessment Revenue 12.905 12.900 12,900 )Interest Revenue 1,082 400 400 i Grant Revenue 0 0 0 'Capital Project Closeout 0 0 0 Miscellaneous 0 0 0 Total Revenues $16,528 $15,890 $15,968 DISTRICT STATISTICS Total Number of Parcels 26 Total Parcels Levied 26 Total EBU's 26 Rate per EBU (Equivalent Benefit Units) $496.16 Maximum Rate per EBU $496.16 OPERATING RESERVE Beginning Reserve Balance $3,510 $3,984 $9,050 Transfers In/Out (CIP) (8,085) 7,276 (17.230) Reserve Fund Activity 8.558 (2,210) 10,776 Estimated Ending Reserve Balance $3,984 $9,050 $2,596 CAPITAL IMPROVEMENT RESERVE CIP Fund Balance $112,177 $120,262 $112.986 CIP Transfers In/Out(Operating Reserve) 8,085 (7,276) 17,230 CIP Projects' (44,200) (46,800) (49,400) Estimated Ending CIP Reserve Balance $76,062 $66,186 $80,816 (1) Actual figures per Finance Fiscal Year 2016/2017 activity sheets tel Approved budget (3) Proposed budget (4) Includes cost allocation City staff support services. (5) CIP Projects Replacement/Repair to portions of wall on Midland/Twin Peaks Road 2018/2019 City of Poway Landscape Maintenance District 83-1 Page 12 of 14 Resolution No. 18-027 Page 18 AW I LLDAN FINANCIAL SERVICES 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. 2018/2019 City of Poway Landscape Maintenance District 83-1 Page 13 of 14 Resolution No. 18-027 Page 19 WI LLDAN Ljad FINANCIAL SERVICES APPENDIX B - 2018/2019 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 2018/2019 Assessment Roll", and is on file with the City Clerk and is by reference made a part of this Report. 2018/2019 City of Poway Landscape Maintenance District 83-1 Page 14 of 14