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Item 6 - Resolution Establishing Assessments Lighting District - - AGENDA ..EPORT SUMMARY TO: Honorable Mayor and Members of the City Council - James L. Bowersox, City Man~ FROM: . INITIATED BY: John D. Fitch, Assistant City Managej'r\' -2; James R. Williams, Director of Public rvices Patricia S, Nelson, Department Aide F DATE: August 1, 1995 SUBJECT: Resolution Establishing Assessments for the Poway Lighting District to be Collected on the Property Tax Roll for Fiscal Year 1995/96 ABSTRACT On June 6, 1995, the City Council approved the Engineer's Report adopting Resolution No, 95-042, declaring the intention to levy and collect assessments within the City of Poway Lighting District and set two public hearings for June 27 and August I, 1995, Assessments are proposed to remain at the current rates of $15,00 per benefit unit for Zone A, $3.75 per benefit unit for Zone B, and $13,58 per benefit unit for Zone C. However, approximately 1,600 parcels have been redesignated into the proper zone according to benefit, or non-benefit, received from street lighting, This redesignation caused an increase in assessments for some parcels, - ENVffiONMENTAL REVIEW This action is not subject to CEQA review, FISCAL IMPACT Sufficient revenues will be generated by assessments for the continued operation and maintenance of street lights, traffic signals, safety lights, and flashing beacons, ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE Pursuant to SB 1977 Section 50078,6, all public notification requirements have been met, including: posting within the Agency, display ads not less than 1/8 page to run in a newspaper of general circulation for not less than three weeks, and notice mailed to property owners affected by new assessments, A copy of this report has also been mailed to Ms, Peggy Shea, Staff responded to all letters and calls received prior to the date of writing this report concerning protests against the increase in assessments, Copies of all correspondence is on file with the City Clerk's Office. RECOMMENDATION It is recommended that the City Council adopt the attached resolution establishing assessments for Poway Lighting District to be collected on the Property Tax Roll for fiscal year 1995/96, ACTION - 1 of 5 AUG 1 1995 ITEM 6 ---------- -----~---~~ AGENDA REPORT CITY OF POW A Y TO: Honorable Mayor and Members of the City Council FROM: James L Bowersox, City Ma~ , INITIATED BY: John D, Fitch, Assistant City Manager ctl"l James R, Williams, Director of Public servicerr Patricia S, Nelson, Management Aide r DATE: August I, 1995 SUBJECT: Resolution Estahlishin~ Assessments for the Poway Li~htin~ District to be Collected on the Property Tax Roll for Fiscal Year 1995196 BACKGROUND To date, each developed parcel within the District pays an assessment according to benefit. The formula for benefit assessments is derived from the land use/traffic generation functions, This is the first year the District proposes to collect assessments from vacant, buildable parcels, It has been determined that these parcels do receive benefit from street lighting and traffic signals as they are within the District boundaries and have access to District facilities, Assessments for vacant, buildable parcels have been calculated at a 50 percent benefit rate based upon a [County] land use and traffic generation formula; therefore, a vacant, buildable "residential" parcel would have an assigned 0.5 BU [benefit unit]. There are approximately 14,105 taxable parcels in the City of Poway, Approximately 14,029 of these parcels are assessable by the Poway Lighting District, the remainder being unbuildable or government owned lots. The benefit units derived from these assessable parcels total approximately 16,989,65 for Zone A, 3,467.01 for Zone B, and 20,456,66 for Zone C. Zone A parcels have street lighting within their immediate vicinity, and share equitably in benefit from major arterial street lighting. Zone A assessments are based on $15,00 per benefit unit for improved parcels and $7,50 per benefit unit for vacant, buildable parcels, ACTION: 2 of 5 AUG 1 1995 ITEM 6 -. Agenda Report - Lighting District Levy and Collect Assessments August 1, 1995 Page 2 Zone B parcels do not have benefit of immediate street lighting, but share equitably in benefit from major arterial street lighting, Zone B assessments are based on $3,75,1 Zone C assessments, which fund the operation and maintenance of Traffic signals and flashing beacons within the City boundaries, are collected from all assessable parcels in Poway. Improved parcels are assessed at $13,58 per benefit unit. Buildable parcels that are vacant are assessed at a rate of 50 percent, or $6,79l per benefit unit. FINDINGS The City Council approved the Lighting District's Engineer's report and resolution of intent to levy and collect assessments on June 6, 1995. These documents are on file with the offices of the Poway City Clerk, 13325 Civic Center Drive, and the Department of Public Services, 14644 Lake Poway Road, Poway, California. The assessments for fiscal year 1995/96 are based on the District's operation and maintenance costs, Revenues are required by the District are $860,815,42, This amount includes zone assessments, the annual Ad Valorem Tax, and interest. Approximately $41,100 of the revenues collected will be added to the Unappropriated Contingency Capital Replacement Fund, The balance, $819,720, is for anticipated FY 1995/96 expenditures and required six- month reserve. Although no "Zone" rate increases are proposed for the three District zones, increases will occur for parcels that have been reevaluated for direct benefit to street lighting, and from the assignment of a 50 percent benefit rate to vacant, buildable parcels within the District. Approximately 2,500 notices were mailed to affected property owners, Staff received approximately 35 calls and nine letters of protest, Of these, approximately 20 calls and eight letters, relate to Ridgedale Drive, portions of St. Andrews Drive, Edina Court, Savage Way, and Terrilee, These parcels [about 12 percent of the original 1,670] were deleted from the reevaluation listing and placed back into Zone B. The other letter and calls protesting the reevaluation could not be supported by the parcel owners as the parcels involved were directly affected by street lighting as defined under Zone A, ENVIRONMENTAL IMPACT This item is not subject to CEQA review. - JThe County round this number to $3.76 for tax billing purposes, 2ibid 3 of 5 AUG 1 1995 ITEM ,6 Agenda Report - Lighting District Levy and Collect Assessments August 1, 1995 Page 3 FISCAL IMPACT Sufficient revenues will be generated by assessments for the continued operation and maintenance of street lights, traffic signals, safety lights, and flashing beacons, PUBLIC NOTIFICATION AND CORRESPONDENCE Pursuant to SB 1977 Section 50078,6, all public notification requirements have been met, including: posting within the Agency, display ads not less than 1/8 page to run in a newspaper of general circulation for not less than three weeks, and notice mailed to property owners affected by new assessments, A copy of this report has also been mailed to Ms. Peggy Shea. Staff responded to all letters and calls received prior to the date of writing this report concerning protests against the increase in assessments. Copies of all correspondence is on file with the City Clerk's Office, RECOMMENDATION It is recommended that the City Council adopt the attached resolution establishing assessments for the Poway Lighting District to be collected on the Property Tax Roll for fiscal year 1995/96, JLB:JDF:JRW:PSN Attaclunent: Resolution AUG 1 1995 ITEM 6 , 4 of 5 - RESOLUTION NO. 95- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POW A Y, CALIFORNIA ESTABLISHING ASSESSMENTS FOR THE POWAY LIGHTING DISTRICT TO BE COLLECTED ON THE PROPERTY TAX ROLL FOR FISCAL YEAR 1995/96 WHEREAS, the City Council of the City of Poway desires to have the Poway City Lighting District assessments collected on the property tax roll; and WHEREAS, on June 6, 1995, at a regular meeting of the Poway City Council, the amounts to be collected have been set forth in the Engineer's Report; and WHEREAS, on June 27 and August 1, 1995, public testimony was allowed on the proposed reevaluation of parcels to be included within Zone A from Zone B and new assessments collected for vacant parcels; and WHEREAS, the public has been allowed to comment on these amounts and this action has been duly advertised as required by law; and WHEREAS, this action is authorized by the laws of the State of California; and WHEREAS, City Council action on this item qualifies for a statutory exemption pursuant to Section 15273 of the California Environmental Quality Act Guidelines, NOW, THEREFORE, the City Council of the City of Poway, California does hereby fmd, resolve, determine, and order as follows: Section I: The sum of $638,470 is required to be collected for the cost of administering, operating, and maintaining the Poway City Lighting District. That said sum shall be collected on the 1995/96 San Diego County Tax Roll to provide for the administration, operation, and maintenance of the District, PASSED, ADOPTED, and APPROVED by the City Council of the City of Po way, California at a regular meeting thereof this 1st day of August, 1995, Don Higginson, Mayor ATTEST: - Marjorie K. Wahlsten, City Clerk 5 of 5 AUG 1 1995 ITEM 6 -~-- - -- --- ..-------..--- --------- - -------------- ,r-.-'-~~'} (~, l::; I J;e . ------~.~.-:~ - CITY OF POW A Y I"Ll) STY Ql'...l 0 DUN HIGGINSON, Mayor 1-.t "'{4:6 ,,( rSAN CALLERY, Deputy Mayor flETlY REXFORD, Couocilmember flOEI EMERY, Council member MIC KEY CAFAGNA, Councilmember June 15, 1995 Ftc: Re-e\aluation of Zone A Street Lighting Assessments !h..- Po"ay Propeliy Owner: 'Ilris I<:!.ler is to infonn you of a proposed increase to the expenses that wiII be listed on your property tax bill beginning July I, 1995, and 10 advise YOll of two public hearings that wiII be held in the Poway City Council Chambers on June 27,1995. and AU2ust I. 1995 at 7:00 JMU. An explanation of the proposed increase follows: II spe.;ial benefit district for operating and maintaining the community's street lights was established by the County of San Diego long bt ler, the City of Poway ineorporated in 1981. Upon incorporation, Poway took over the responsibility for street lights and administration (lfthe Stmet Lighting District. Poway retained the structure of the District exactly as it was formed by the County and also adopted the 'ame rate' stmcture: 515.00 per year per benefit unit (a residential parcel constitutes one benefit unit) for parcels in Zone A. Property OWTIers deriving a direct benefit from street lighting within their respective area, are charged $15 per year per benefit unit. This fee incl'Jdes 53,75 for the maintenance of street lighting along major arterials such as Poway Road, Twin Peaks, Pomerado Road, ete, Z'J11e El property owners, having no direct benelit from area street lighting, pay maintenance assessments of $3,75 per year per benefit 11I1 it for the maintenance of street lighting along major arterials, As~essment rates have not changed for Zone A or Zone B since 1981. S"I1J(, properties are determined to receive more benefit than others based upon the traffic generated by users of the property, Others I....",ive less benefit. For example, a shopping center receives more benelit from street lights than does a single family residence. Similarly, a residential property receives more benefit than an acre of agricultural land, Poway uses the results at the Saii Diego Association of Gnlemments (SANDA G) annual traffic generation study and report to determine the benefit units applicable to each property. T ,vo years ago tramc signals and flashing beacons were added to the maintenance responsibilities of the Street Lighting District, and Zone e \"a~; established to generate revenues to maintain and operate these additional facilities. Zone C assessments were set at $13.58 per '",,,d'ilullit. Property owners in Poway now pay annual assessments either for the combined Zone A and Zone C services ($28,58 per '",,,d'it ullit), or the combined Zone B and Zone C services ($17.33 per benefit unit). 'Wh!~n traffic signals and flashing beacons were proposed to be added, considerable public input was received and the City Council directed ; n v(:sligal ion and action to correct inconsistencies that were reported in the way the Lighting District had been administered for several ral'S. TIlls prompted an audit of the tax assessor's roles to ensure all parcels were being assessed at the proper rate, The audit identified 115 p,,-cds that were paying Zone A rates when they should have been paying Zone B rates. Conversely, 1,260 parcels were paying Zone B rate, ,,'hen they should have been paying the higher Zone A rates, Your property is one that had been improperly recorded by the d sh,::t. Therefore, to correct this past error, your property tax bill for the fiscal year beginning July I, 1995, will increase from $ ~,l:~.1.:r_ to $ .!J / 'f. ~ for that portion identified as a special assessment for the Street Lighting District. y,ltI are invited to attend the public hearings mentioned in the first paragraph of this letter or to call 679-4384 if you have questions, or respond hy letter with your concerns. We anticipate the City Council will make a determination on this proposal after receiving public illput al the final hearing on August I, 1995. Sinenely. If you have special needs requiring assistance at the meeting, ~ ~ please call the City Clerk at 679-4236, 24 hours prior to the (~( . e . meeting so that accommodation can be arranged, . ~'M4;') ,t ~ 1-<..1. ~ ( 11111; R. William", P. E. ---.(;.41" clor of Public Services d:\wpfiles\ltrs\zonechn City Hall Located at 13325 Civic Center Drive Mailing Address: P.O. Box 789, Poway, California 92074-0789 (619) 748-6600, 695-1400 ".----.-- ll+"'lS <lP(o ------------ ___m___________ _____ ___ _ __________