07-05-2022 CC RPT 47 - Laserfiche WebLink

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Riverwalk Landscape Maintenance District-Round 3Page 2 On June 7, 2022, the City Council adopted Resolution 23858 approving the Preliminary Annual Engineers Report for the Riverwalk Landscape Maintenance District and setting a public hearing for July 5, 2022 to approve the Final Annual Engineers Report for the Riverwalk Landscape Maintenance District, and authorizing the levy of special assessments within the District. DISCUSSION: The procedures of the Street Lighting and Landscaping Act of 1972 require the City Council hold a Public Hearing prior to the adoption of a resolution confirming the Annual Engineers Report and establishing the FY 2022/23 annual assessments for the Riverwalk Landscape Maintenance District. The District formation process held in July 2002 set an annual assessment increase based on the change in the Consumer Price Index (CPI) as measured each July 1. Prior to FY 2018/19, the annual escalation was determined by multiplying the prior year rates, both Minimum and Maximum, by the percentage increase, if any, in the CPI for Los Angeles-Riverside-Orange County. In December 2017, the Bureau discontinued the original index, and replaced it with two new indexes (Riverside-San Bernardino-Ontario and Los Angeles-Long Beach-Anaheim). Starting in FY 2019/20, the City began using the Riverside-San Bernardino-Ontario Index, as it most closely mirrors local assessed valuation changes. Thus, the annual escalation will be determined by the percentage increase, if any, in the Riverside-San Bernardino-Ontario Index (December 2017=100) from the preceding year. Based on the CPI increase of 10.0432% as detailed in the Enginee maximum allowed assessment range in FY 2022/23 per EDU is $258.50 - $396.34 for Zone A (residential) and $1,292.45 - $1,723.24 per acre for Zone B (business park). In prior years, the City has levied less than the maximum allowed and used surplus funds within the district towards annual expenses. However, the district depleted surplus funds in recent years through repairs, rehabilitations, and one-time equipment costs. To avoid a sharp increase in property tax assessments, the City is slowly increasing the levy amount to the maximum level needed to fully offset maintenance costs. Staff recommends that in 2022-2023, the City increase the levy amount by the CPI increase of 10.0432%, contributing $114,393 from the General Fund to maintain a gradual year over year increase toward full cost recovery. With the proposed increase, the current year assessment will still be well within the maximum allowable assessment. Based on the projected net expenses for FY 2022/23, the annual assessment for FY 2022/23 will be $315.76 per residential parcel, and $1,590.09 per acre within the business park. This would bring the total assessment levy for FY 2022/23 to $461,539.84. STRATEGIC PLAN ALIGNMENT: This item contributes to Strategic Priority 5 High Performing Government and goal 5.3 Enhance communication and collaboration with community members, to improve transparency, build public trust, and encourage shared decision-making. This item aligns with each of the five Cross-Cutting Threads as follows: 1. Community Trust The preparation of an annual engineers report and levy process complies with the Landscaping and Lighting Act of 1972, under which the Riverwalk Landscape Maintenance District was formed. This process provides transparency for