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HOLD PUBLIC HEARING FOR THE APPROVAL OF THE ANNUAL ENGINEER’S REPORT, FY 2025-26 ANNUAL BUDGETS, AND CONFIRM AND LEVY ASSESSMENTS FOR THE STOCKTON CONSOLIDATED STORM DRAINAGE MAINTENANCE ASSESSMENT DISTRICT NO. 2005-1
recommended action
RECOMMENDATION
The City Council, at its meeting on April 15, 2025, preliminarily approved and confirmed the Engineer’s estimate of costs and expenses of the Consolidated Storm Drainage Maintenance Assessment District 2005-1 (District) and the annual assessments related thereto and set a required public hearing for June 3, 2025.
It is recommended that the City Council now conduct a public hearing to consider public comment and testimony regarding the approval and adoption of the annual budgets and assessment rolls for the District.
After the public hearing, if a majority protest based on the assessment amount does not exist, it is recommended that the City Council adopt a resolution to:
1. Overrule all public hearing protests or objections (including all written protests not withdrawn in writing before the conclusion of the public hearing).
2. Approve and adopt the District Annual Engineer’s Report for the Fiscal Year (FY) 2025-26, which contains the budget for each zone.
3. Confirm and levy the assessments for each zone as set forth in the Report.
4. File the assessments or a copy thereof, certified by the City Clerk or other City Official, with the San Joaquin County Auditor and cause the assessments to be entered on the FY 2025-26 tax roll as set forth in the Annual Engineer’s Report on file with the City Clerk.
It is further recommended that the City Manager be authorized to take all appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
The Municipal Utilities Department (MUD) encompasses the Water, Wastewater, and Stormwater Utilities, which are regulated for the protection of public health and the environment and supported by user fees. The Stormwater Utility consists of 77 pump stations, over 600 miles of pipeline, and 22,500 drain inlets that route stormwater from city streets into local basins and waterways. Regular system maintenance is necessary to prevent flooding from storm runoff. The Stormwater Utility is also responsible for oversight and compliance with the City’s National Pollutant Discharge Elimination System (NPDES) Municipal Separate Storm Sewer System permit, which requires extensive monitoring and public outreach programs to promote water quality in the Sacramento San Joaquin River Delta.
In addition, the Stormwater Utility manages several Consolidated Storm Drain Maintenance Districts and Storm Drainage Basin Districts throughout the City. These Storm Drainage Maintenance Assessment Special Districts were formed pursuant to State law and the Stockton Improvement Procedure Code. The districts provide for the maintenance and operation of capital improvements that impart a special benefit to a designated area, including stormwater quality treatment and flood control.
These special districts require an annual Engineer’s Report to identify the budgets, changes to boundaries, and assessments for each parcel contained within each District. The budgets for each District include engineering fees for the preparation of the annual Engineer’s Report and tax rolls; attorneys’ fees; estimated costs of maintenance work to the device(s); City administrative costs; County costs to collect the assessments on the tax rolls; replacement reserve costs; and contingency fees. City administrative costs include staff salary expenses to oversee the annual Engineer’s Report and tax rolls, maintenance service contracts, coordinate device inspections, and maintenance schedules, as well as District finances management. The assessments are approved through a public hearing process.
If approved, this action will adopt the FY 2025-26 Engineer’s Report, including the budgets and assessments rolls for all 15 zones within the District.
DISCUSSION
Background
On July 26, 2005, the City Council adopted Resolution 05-0329 to establish an assessment district designated as the “Stockton Consolidated Storm Drainage Maintenance Assessment District No. 2005-1” (District) and the creation and annexation of zone 1, known as “Riverbend Zone 1.” The formation of this District was based on the provisions of the Municipal Improvement Act of 1913 (Act) and the Stockton Improvement Procedure Code (Stockton Code). Since then, 14 additional zones have been formed and annexed to the District for a total of 15 zones. Attachment A is a map depicting the location of each of the zones within the District.
The Act and Stockton Code contain provisions authorizing the City to form an Assessment District and annex zones to the district’s boundaries for the maintenance and operation improvements that impart a special benefit to an area. The purpose of the District is to provide funding for the operations, maintenance, and replacement of stormwater quality treatment devices that comply with the Stormwater Quality Control Plan and meet requirements of the Stormwater National Pollutant Discharge Elimination System Permit (NPDES), as well as regional stormwater basins and associated components.
An Annual Engineers’ Report has been prepared for the District and submitted to the City. The Engineers’ Report has determined the actual assessments for FY 2025-26 for all the zones within the District and for each separate property within those zones. A Public Hearing is required to approve these assessments before they can be included in the San Joaquin County (SJC) tax roll for collection.
For this fiscal year, Siegfried Engineering, Inc., of Stockton, California, was authorized to prepare the FY 2025-26 Engineer’s Report. A copy of the Report was submitted to the City Clerk and is on file for review by the Mayor and City Council. On April 15, 2025, the City Council adopted and preliminarily approved the FY 2025-26 Engineer’s Report, which includes the proposed budgets for the maintenance and operation of the improvements for each zone within the District, and the Assessment Rolls. The City Council action also set the public hearing for June 3, 2025.
The property owners are responsible for funding only those improvements within their Zone that are identified in the original Engineer’s Report as a special benefit. Each assessed parcel is assigned a dwelling unit equivalent factor (DUE), or a per assessable acre factor. A single-family residential lot is equivalent to one dwelling unit equivalent factor. The DUE factor for other classifications of developed parcels is determined by a formula detailed in the initial Council-approved Engineers’ Report for that Zone.
Present Situation
None of the proposed FY 2025-26 assessments exceed the allowed maximum annual assessment established in the original Engineer’s Report, which were approved by property owners through landowner ballots in accordance with Article XIII D, Section 6 of the California Constitution (commonly referred to as Proposition 218). Proposition 218 was adopted in 1996 and requires that property owners subject to assessment have an opportunity to weigh in on the adoption of each proposed annual assessment via public hearing held by the City Council.
The Engineer’s Report forming most zones includes the provision for an annual assessment in an amount equal to the greater of either 3.0 percent or the annual increase as shown in the Local Consumer Price Index for the San Francisco-Oakland-San Jose All Items, All Urban Users, as published by the Bureau of Labor Statistics for a similar period. For the calendar year 2024, the annual increase is approximately 2.38 percent. For FY 2025-26, a 3.0 percent adjustment has been applied to the FY 2025-26 maximum allowable assessments.
Proposition 218 provides the latitude to approve the maximum allowable assessment but collect a lesser amount based on projected expenditures. Approving the maximum allowable assessment but only assessing the amount needed for the projected expenses allows the latitude to collect the maximum assessment in the event of unanticipated expenses and/or emergencies and complies with the requirements of Proposition 218.
The proposed budget for each zone within the District includes engineering fees for the preparation of the Annual Engineer’s Report and tax rolls, attorney’s fees, estimated cost of maintenance work, City of Stockton administrative costs, SJC costs to collect the assessments on the tax roll, replacement reserve costs, and a contingency amount. The general maintenance scope of work includes vector control, weed abatement, rodent control, slope dressing, mowing, ripping, grading of the basin bottom (as needed), pick-up and removal of trash and debris, cleaning of the structures, sediment removal, repair of fence and access, filter changes, device cleaning, and other maintenance associated with the special benefit.
The table below is a summary of the budget and per DUE factor to be assessed for each zone of the District for FY 2024-25 and FY 2025-26, as well as the Proposed Operational Budgets and the Maximum Allowable Assessment amounts for FY 2025-26.
|
Zone No. |
Zone Name |
FY 2024-25 Rate Per DUE Factor |
FY 2025-26 Rate Per DUE Factor |
FY 2024-25 Assessment |
FY 2025-26 Assessment |
FY 2025-26 Proposed Dwelling Unit Equivalents (DueF) |
FY 2025-26 Maximum Allowable Assessment |
|
1 |
Riverbend Estates |
$42.64 |
$43.90 |
$27,787.38 |
$28,608.50 |
$651.68 |
$52,544.96 |
|
2A |
Cannery Park |
$7.62 |
$8.04 |
$7,507.38 |
$7,716.68 |
$959.79 |
$20,923.42 |
|
2B |
Cannery Park |
$21.62 |
$26.60 |
$27,779.88 |
$28,592.32 |
$1,074.90 |
$36,632.59 |
|
3 |
Simbad Estates |
$453.78 |
$467.38 |
$12,705.84 |
$13,086.64 |
$28.00 |
$29,580.88 |
|
4 |
Dama Estates |
$769.14 |
$792.20 |
$13,075.38 |
$13,467.40 |
$17.00 |
$38,609.72 |
|
5A |
Silver Springs & Gold Springs |
$128.62 |
$132.46 |
$34,668.22 |
$35,703.26 |
$269.54 |
$82,721.83 |
|
5B |
Silver Springs & Gold Springs |
$127.12 |
$130.92 |
$4,322.08 |
$4,451.28 |
$34.00 |
$6,393.36 |
|
6 |
Old Oak Estates |
$224.68 |
$231.40 |
$13,930.16 |
$14,346.80 |
$62.00 |
$24,790.70 |
|
7 |
Oakmore Meadows, Unit 3 |
$431.86 |
$444.80 |
$22,563.38 |
$23,239.46 |
$52.25 |
$27,557.16 |
|
8 |
Little John Creek North & South |
$406.50 |
$418.68 |
$25,609.50 |
$26,376.84 |
$63.00 |
$31,270.05 |
|
9 |
Malisa Manor |
$862.88 |
$888.76 |
$13,806.08 |
$14,220.16 |
$16.00 |
$32,357.28 |
|
10 |
Meadow-lands Unit 2 |
$349.96 |
$360.44 |
$12,598.56 |
$12,975.84 |
$36.00 |
$40,769.28 |
|
11 |
Westlake Villages |
$4.42 |
$4.54 |
$13,895.48 |
$16,144.68 |
$3,556.14 |
$1,110,084.84 |
|
12 |
Moss Gardens |
$31.06 |
$31.98 |
$12,495.10 |
$12,865.20 |
$402.29 |
$87,313.02 |
|
13 |
ProLogis Park at Duck Creek |
$27,837.86 |
$28,672.88 |
$27,837.86 |
$28,672.88 |
N/A |
$85,176.34 |
|
14 |
Calaveras IV |
$444.12 |
$468.86 |
$18,208.92 |
$18,754.40 |
$40.00 |
$20,812.80 |
|
15 |
BD Homes |
$902.50 |
$929.56 |
$11,732.50 |
$12,084.28 |
$13.00 |
$12,307.88 |
*ProLogis Park at Duck Creek (Zone 13) is the only zone within the District with assessments calculated on an assessable acre basis. Assessments for ProLogis Park are spread in proportion to the adjusted area for each parcel in Zone 13. The current assessable acreage is 97.82 acres. The maximum assessment is $85,176.34, resulting in a per acre maximum assessment or $870.75. The actual assessment is $28,672.88, resulting in an actual assessment per acre of $293.12.
The proposed assessments are to increase the zone assessment amounts by 3 percent when allowed by the original Engineers’ Report. All budgets in each zone are below the maximum allowable amount. Annual approval of the budget and Engineers’ Report is required by the Municipal Improvement Act of 1913 and the Stockton Improvement Code, Part V. A copy of the FY 2025-26 Annual Engineers’ Report is on file in the Office of the City Clerk and can also be found on the City of Stockton website at the following link: www.stocktonca.gov/stormwater <http://www.stocktonca.gov/stormwater>.
The anticipated FY 2025-26 ending fund balances for the zones are:
|
Zone No. |
Zone Name |
FY 2025-26 Anticipated Fund Balance |
|
1 |
Riverbend Estates |
$229,007.43 |
|
2A |
Cannery Park |
$61,766.45 |
|
2B |
Cannery Park |
$236,782.21 |
|
3 |
Simbad Estates |
$114,053.79 |
|
4 |
Dama Estates |
$127,070.88 |
|
5A |
Silver Springs & Gold Springs |
$592,908.84 |
|
5B |
Silver Springs & Gold Springs |
$26,874.87 |
|
6 |
Old Oak Estates |
$110,874.04 |
|
7 |
Oakmore Meadows |
$214,723.06 |
|
8 |
Little John Creek North & South |
$247,177.38 |
|
9 |
Malisa Manor |
$138,773.54 |
|
10 |
Meadowlands |
$115,003.26 |
|
11 |
Westlake Villages |
$51,447.94 |
|
12 |
Moss Gardens |
$147,925.69 |
|
13 |
ProLogis Park at Duck Creek |
$224,776.76 |
|
14 |
Calaveras IV |
$45,948.40 |
|
15 |
BD Homes |
$13,010.28 |
This public hearing allows any interested person an opportunity to protest the proposed budget, the proposed method and proportion of assessment, the maximum annual assessment, or the actual FY 2025-26 assessment, either in writing or orally, for each zone in the Annual Report. A majority protest exists if more than 50 percent of the owners of the area of assessable lands within the district in each zone file a written or verbal protest. The required notice of this public hearing was published in The Record on April 15, 2025, and again on May 5, 2025, at least 10 days prior to the hearing date, in accordance with applicable Proposition 218 noticing requirements.
By approving the proposed resolution, the City Council will approve and adopt the Annual Engineer’s Report for FY 2025-26, which includes the Budget for each zone of the District and the Assessment Roll. This action will also confirm the levy and collection of the assessments set forth in the Annual Engineer’s Report for the District.
FINANCIAL SUMMARY
The proposed Consolidated Storm Drainage Maintenance District budget for FY 2025-26 is detailed in Attachment B.
The City makes no financial contributions to the District. All fees, costs, and expenses incurred are paid from the proceeds of the annual assessments to be levied and collected on the San Joaquin County tax roll. Proposition 218 limits the use of the funds collected within the various zones of this District to pay only the expenses related to the maintenance and operation of the specific stormwater quality treatment device(s) detailed in the Annual Engineers’ Report for each zone. The funds collected from the property owners of a zone can only be used for work on the device(s) in that zone as it imparts a special benefit restricted to the properties of that zone. District funds are segregated and cannot be used to operate, maintain, or support the activities of the stormwater system, or any other utility at large.
Administration and operational costs for the maintenance of the stormwater treatment basin in Cannery Park 2B will be proportionately split with the Stockton Stormwater Utility in FY 2025-26 as the basin is also used for flood control purposes.
This action has no impact on the General Fund or any other unrestricted funds.
Attachment A - District Zones Location Map
Attachment B - Summary of Zone Budgets
Attachment C - Consolidated Storm Drainage Maintenance District Locations