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PRELIMINARILY APPROVE THE 2018-19 STOCKTON CONSOLIDATED STORM DRAINAGE MAINTENANCE ASSESSMENT DISTRICT 2005-1 ANNUAL ENGINEER’S REPORT, THE PROPOSED FY 2018-19 BUDGET, AND SET A PUBLIC HEARING FOR JUNE 5, 2018
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Preliminarily approve the Fiscal Year (FY) 2018-19 Annual Engineer’s Report for the Stockton Consolidated Storm Drainage Maintenance Assessment District 2005-1.
2. Preliminarily approve the FY 2018-19 proposed budgets for each zone.
3. Schedule a Public Hearing for June 5, 2018.
4. Authorize the City Clerk to publish notice of the public hearing.
It is further recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
If approved, this action will preliminarily approve the Annual Engineer’s Report and preliminarily approve the FY 2018-19 budget for each zone of the Consolidated Storm Drainage Maintenance District, and set a Public Hearing date for June5, 2018. The proposed assessments are to remain at the same level as the prior years’ zone assessment amounts. All budgets in each zone are below the maximum allowable amount. Annual approval of the budget and Engineer’s Report is required by the Municipal Improvement Act of 1913 and the Stockton Improvement Code, Part V. A copy of the FY 2018-19 Annual Engineer’s Report is on file in the City Clerk’s Office.
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 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, 12 additional zones have been formed and annexed to the District. Attachment A is a map depicting the location of each of the zones within the District.
The Act and Stockton Code contain provisions for the City to form an Assessment District and annex zones to the District’s boundaries for the maintenance and operation of 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 City’s Stormwater Quality Control Plan and meet the City’s Stormwater National Pollutant Discharge Elimination System Permit (NPDES).
An Annual Engineer’s Report was prepared for the District and submitted to the City. The Engineer’s Report determined the actual assessments for FY 2018-19 for all the zones within the District and each separate property within those zones. The City Council is required to hold a Public Hearing to approve these assessments so they can be included in the San Joaquin County tax roll for collection.
Siegfried Engineering, Inc. of Stockton, California was authorized to prepare the FY 2018-19 Annual Engineer’s Report. The Annual Engineer’s Report determines the annual assessments that are to be approved following a Public Hearing, which are then put on the San Joaquin County tax roll and collected with the county property taxes. These annual assessments provide funding for the inspection, operation, maintenance, repair, and replacement of the improvements in each zone and other associated administrative costs, including preparing the Annual Engineer’s Report and assessment roll. The Annual Engineer’s Report contains a budget for each zone. Attachment B provides a summary of the proposed FY 2018-19 operational budget and assessments for each district.
The property owners are responsible for funding only those improvements within their zone. Each assessed parcel is assigned a dwelling unit equivalent factor, or a per assessable acre factor. A single-family residential lot is equivalent to one dwelling unit equivalent factor. The dwelling unit equivalent factor for other classifications of developed parcels is determined per a formula set out in the initial Council-approved Engineer’s Report for that zone.
Present Situation
None of the proposed FY 2018-19 assessments exceed the allowed maximum annual assessment set in the original Engineer’s Reports, which were approved by landowner ballots following the requirements of Proposition 218 and accepted by Council as part of the formation and annexation proceedings. Proposition 218, enacted in 1996, requires proposed assessments be approved by ballot procedure by the property owners affected by the assessments.
The Engineer’s Report forming each zone included the provision for an annual escalator on the assessments 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, which was 3.2 percent for calendar year 2017. For FY 2018-19, a 3.2 percent increase has been applied to the FY 2018-19 maximum allowable assessments.
Proposition 218 provides the latitude to approve the maximum allowable assessment but to 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 FY 2018-19 assessment amount for each zone will remain the same as the prior year.
The proposed budget for each zone within the District includes: engineering fees for the preparation of the Annual Engineer’s report and tax rolls, attorneys’ fees, estimated cost of maintenance work, City of Stockton administrative costs, County costs to collect the assessments on the tax roll, replacement reserve costs, and a contingency amount. The maintenance scope of work includes: vector control, weed abatement, rodent control, slope dressing, mowing, ripping, grading of the basin bottom (as needed), trash and debris pick-up and removal, cleaning of the structures, and sediment removal.
The operational budget amount for the Riverbend basin-Zone 1 will require an additional one-time transfer from fund balance in the amount of $1,197.42 to cover the deficit between the current year assessment and the operational budget. Sufficient fund balance exists to cover the deficiency; therefore, staff recommends approving the full operational budget and the transfer of funds needed from fund balance Zone 1.
The table below is a summary of the budget and per dwelling unit equivalent factor to be assessed for each zone of the District for both FY 2017-18 and FY 2018-19, as well as, the Proposed Operational Budgets and the Maximum Allowable Assessment amounts for FY 2018-19.
|
Zone No. |
Zone Name |
FY 2017-18 Rate Per Dwelling Unit Equivalent Factor |
FY 2018-19 Rate Per Dwelling Unit Equivalent Factor |
FY 2017-18 Assess- ment |
FY 2018-19 Assess- ment |
FY 2018-19 Proposed Operational Budget |
FY 2018-19 Maximum Allowable Assess-ment |
|
1 |
Riverbend |
$37.64 |
$37.64 |
$24,529.08 |
$24,529.08 |
$25,726.50 |
$40,612.70 |
|
2A |
Cannery Park |
$6.76 |
$6.76 |
$6,660.16 |
$6,660.16 |
$6,660.16 |
$16,620.83 |
|
2B |
Cannery Park |
$23.92 |
$23.92 |
$14,083.38 |
$14,083.38 |
$14,083.38 |
$15,519.98 |
|
3 |
Simbad Estates |
$400.76 |
$400.76 |
$11,221.28 |
$11,221.28 |
$11,221.28 |
$22,856.12 |
|
4 |
Dama Estates |
$678.94 |
$678.94 |
$11,541.98 |
$11,541.98 |
$11,541.98 |
$29,832.11 |
|
5A |
Silver Springs & Gold Springs |
$113.30 |
$113.30 |
$30,538.88 |
$30,538.88 |
$30,538.88 |
$63,921.41 |
|
5B |
Silver Springs & Gold Springs |
$109.24 |
$109.24 |
$3,823.40 |
$3,823.40 |
$3,823.40 |
$5,085.85 |
|
6 |
Old Oak Estates |
$198.40 |
$198.40 |
$12,300.80 |
$12,300.80 |
$12,300.80 |
$19,730.26 |
|
7 |
Oakmore Meadows, Unit 3 |
$380.80 |
$380.80 |
$19,895.66 |
$19,895.66 |
$19,895.66 |
$21,293.26 |
|
8 |
Little Johns Creek North & Little Johns Creek South |
$358.38 |
$358.38 |
$22,577.94 |
$22,577.94 |
$22,577.94 |
$24,162.39 |
|
9 |
Malisa Manor |
$761.82 |
$761.82 |
$12,189.12 |
$12,189.12 |
$12,189.12 |
$25,001.12 |
|
10 |
Meadow-lands Unit 2 |
$309.08 |
$309.08 |
$11,126.88 |
$11,126.88 |
$11,126.88 |
$31,500.72 |
|
11 |
Westlake Villages |
$3.78 |
$3.78 |
$11,067.50 |
$11,067.50 |
$11,067.50 |
$706,241.17 |
|
12 |
Moss Gardens |
$27.50 |
$27.50 |
$11,063.00 |
$11,063.00 |
$11,063.00 |
$67,468.06 |
|
13 |
ProLogis Park at Duck Creek |
$250.85* |
$250.85* |
$24,536.00 |
$24,536.00 |
$24,536.00 |
$67,785.61 |
*ProLogis Park at Duck Creek (Zone 13) is the only zone within the District with assessments calculated on an assessable acre basis. The assessments for ProLogis Park are spread in proportion to the adjusted area for each parcel in Zone 13. The current assessable acreage is 97.81. The maximum assessment is $67,785.61 resulting in a per acre maximum assessment of $693.03. The actual assessment is $24,536.00 resulting in a per acre actual assessment of $250.85.
The anticipated FY 2018-19 ending fund balances for the zones are:
|
Zone No. |
Zone Name |
FY 2018-19 Anticipated Fund Balance |
|
1 |
Riverbend |
$176,335.56 |
|
2A |
Cannery Park |
$ 41,810.74 |
|
2B |
Cannery Park |
$161,006.18 |
|
3 |
Simbad Estates |
$ 79,072.50 |
|
4 |
Dama Estates |
$ 92,830.98 |
|
5A |
Silver Springs & Gold Springs |
$385,934.49 |
|
5B |
Silver Springs & Gold Springs |
$ 11,519.67 |
|
6 |
Old Oak Estates |
$ 68,963.55 |
|
7 |
Oakmore Meadows |
$110,835.10 |
|
8 |
Little Johns Creek North & South |
$122,949.11 |
|
9 |
Malisa Manor |
$ 94,420.38 |
|
10 |
Meadowlands |
$ 67,178.10 |
|
11 |
Westlake Villages |
$ 28,380.25 |
|
12 |
Moss Gardens |
$112,953.63 |
|
13 |
ProLogis Park at Duck Creek |
$174,692.84 |
The FY 2018-19 Annual Engineer’s Report for the District is on file with the City Clerk and available for viewing by the public. The report contains detailed information on the budget for each zone, assessment amounts, and a complete description of improvements required to be maintained. A copy has been distributed to the Mayor and each City Councilmember separately.
The required notice of public hearing will be published in The Record once, at least ten days before the public hearing (to be published by May 24, 2018).
FINANCIAL SUMMARY
The proposed Consolidated Storm Drainage Maintenance Assessment District budget for FY 2018-19 is detailed in Attachment B. The accompanying resolution recommends preliminary approval of this budget with final approval with the City’s FY 2018-19 Annual Budget to be presented to Council on June 5, 2018.
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. The use of the funds collected within the various zones of this District is restricted by Proposition 218 and will be used to pay only the expenses related to the maintenance and operation of the specific stormwater quality treatment device(s) detailed in the Engineer’s 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 City’s Stormwater Utility in FY 2018-19 as the basin is also used for flood control purposes.
There is no impact to the City’s General Fund or any other unrestricted fund because of the recommended actions.
Attachment A - District Zone Map FY2018-19
Attachment B - Budgets by Zone FY2018-19