2005 AGN APR 19 I15 - Laserfiche WebLink

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TO: FROM: CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF APRIL 19, 2005 HONORABLE MAYOR AND CITY COUNCIL Amer Jakher, P.E., City Engineer Item #15 SUBJECT: Approve three (3) resolutions for LLMD 1: 1) Resolution Initiating Proceedings 2) Preliminary Approval of the EngineePs Report and 3) Resolution of the Intent. DATE: April 10, 2005 BACKGROUND: In compliance with the Landscape and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, the City Council formed a Landscape and Lighting Maintenance Assessment District. There exists two Landscape Lighting and Maintenance Districts (LLMD) within the City of Colton. Each District is provided the services of maintaining lighting, landscaping and all applicable facilities within its boundaries. Within the LLMD District 1, there are five zones. Each zone is levied a different amount that is determined by the benefit units each property type (residential, industrial or commercial) is assigned as compared to the 1.00 Equivalent Benefit Unit (EBU) a singie family resident is assigned; the single family unit is used as the basic unit of assessment. In addition to the EBU, the other determining factors in establishing each zone's corresponding assessment are the development status and the acreage of each parcel. The costs associated with maintaining the improvements within each zone are then equally distributed to those parcels within the zone. Only parcels that directly benefit from the improvements are assessed. DISCUSSION/ANALYSIS: For fiscal year 2004/2005, the expenses for LLMD 1 are projected to total $458,343. With a property owner assessment of $261,048 there is an estimated revenue shortfall of $197,295. In past years, this revenue shortfall has historically been funded by a reserve fund. With a balance of $117,216, the reserve fund will be depleted requiring an $80,079 contribution from the City's general fund. As reserves no longer exist, in order to continue providing the same level of landscaping services, staff is proposing an annual 3% or 4% increase in the assessments effective the upcoming 2005/2006 tax roll. It is noted that on April 1, 2003, the City Council approved an amendment to the Colton Municipal Code that increased the duties of the Community Facilities District Commission (CFDC) to include a review of the LLMDs. A preliminary budget showing a three percent increase in assessments to LLMD 1's residents was presented to the CFDC at their meeting of April 4, 2005. A summary of the proposed increases in the assessments for 1 EBU is illustrated as follows: Current Assessment Ran4e $52.59 to $57.95 7/10/03 Ciry Clerk's Office Cb 3% Increase Ranqe 4% Increase Ranqe $1.53 to $1.69 $2.04 to $2.25