Agenda Item Wording:
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PUBLIC HEARING and Adoption of Resolution 2024-12 which allows the City of Visalia to place Miscellaneous Special Assessments on the Tulare County secured property tax roll for Curb and Gutter, Sewer Connection, Deferred Impact Fees, Property and Business Improvement District, Northeast Improvement District, Landscape and Lighting Maintenance District, Landscape and Lighting Parks Construction, Open Space Assessment District, Orchard Walk East/West Utility Assessment District, Laura and Atwood Water Main Assessment District, Delinquent Utilities, Code Enforcement, and Weed & Lot Abatement.
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Deadline for Action: 6/3/2024
Submitting Department: Finance and Technology Services
Contact Name and Phone Number: Ruth Pena, 713-4327, ruth.pena@visalia.city <mailto:ruth.pena@visalia.city>
Department Recommendation:
It is recommended that the City Council conduct a public hearing to allow individuals an opportunity to protest any charges they believe are being assessed improperly. After holding the Public Hearing, it is recommended the Visalia City Council adopt Resolution 2024-12 which allows the City of Visalia to place Miscellaneous Special Assessments on the Tulare County secured property tax roll for collection.
Background Discussion:
Summary: Each year, the Council considers a Resolution to place assessments on the property tax roll for collection. The total parcels and amounts requested to be placed on the tax roll are preliminary until the final filing date of August 10, 2024, with the Tulare County Auditor-Controller’s Office. Until the filing date, the list may change due to payments being received or parcel numbers being removed if they are not active in the County data base. The final list, and its assessments, will not increase from the preliminary listing. The only changes that will occur will result in a decrease in parcels submitted and dollar amount assessed. A final listing of the parcel numbers and amounts assessed will be available after August 31, 2024.
The preliminary amount for fiscal year 2024/25 is $8,393,099 and will be assessed on 25,777 parcels. It is possible that some parcels may receive more than one type of assessment, resulting in a reduction in the number of actual parcels being assessed.
Background Discussion:
The placing of miscellaneous special assessments on the Tulare County secured property tax roll is an annual process which allows the City to collect fees for three general categories:
1. Agreements Entered into at the Property Owner’s Request
• Curb and Gutter
• Sewer Connection
• Deferred Impact Fees
2. Special District Assessments
• Property and Business Improvement District
• Northeast Improvement District
• Landscape and Lighting Maintenance District
• Landscape and Lighting Parks Construction
• Open Space Assessment District
• Orchard Walk East/West Utility Assessment District
• Laura and Atwood Water Main Assessment District
3. Delinquent Service Charges
• Utilities
• Code Enforcement
• Weed and Lot Abatement
City departments are responsible for calculating and levying the charges and fees for the services they render, and the assessments they administer. The property owners are notified of the tax roll assessment individually, and in accordance with the applicable law, at: 1) the time of the agreement, as in the case of the owner requested services; 2) through a balloting process, as in the case of assessments in Landscape and Lighting Districts that do not have an automatic annual increase provision; and 3) receipt of a 45 day notice by mail, as in the case of delinquent service charges. Property owners are also notified of the tax roll assessment through a 10-day notice of the Public Hearing published in the newspaper by the City Clerk. All notifications and public hearings are in accordance with the Visalia Ordinance Code, Proposition 218, and California Law.
A preliminary listing, including the parcel number and the dollar amount to be assessed, will be on file with the City Clerk after June 3, 2024. The listing is preliminary until the final filing date of August 10, 2024, with the Tulare County Auditor-Controller’s Office. Until the filing date, the list may change due to payments being received or parcel numbers being removed due to not yet being active in the County data base. The final list will not increase from the preliminary listing. The only changes that will occur will result in a decrease in parcels submitted and dollar amount assessed. A final listing of the parcel numbers and amounts assessed will be on file with the City Clerk after August 31, 2024.
A comparison of the FY 2024/25 current year preliminary assessments with the 2023/24 prior year preliminary assessments is shown in Table I: Tax Roll Summary. The table shows an increase of 861 parcels in this year’s tax roll compared to last year.
Attachment 2 provides a comparison of FY 2023/24 preliminary and final numbers and the FY 2024/25 preliminary numbers. The final tax roll is always less than the preliminary tax roll due to property owners making payments until the final list is submitted to the County.
The following are descriptions of the categories, the types of assessments within each category and the preliminary amounts expected to roll to taxes in FY 2024/25 for each assessment.
1. Agreements Entered into at the Property Owner’s Request
The assessments below are supported by an agreement between the City of Visalia and the property owner.
• Curb & Gutter: 1 Parcel totaling $1,127
These assessments are for the construction of curb and gutter or sidewalk for the specific parcel. This type of special assessment is for property owners that opted to pay for the construction costs through their property tax bill over a period of up to ten years. A 5% interest rate is charged on the outstanding principal balance each year.
• Sewer Connection: 54 Parcels totaling $49,497
These assessments are for the construction of the main line and lateral for connection to the Visalia Wastewater Treatment Plant for property owners that opted to pay connection costs through their property tax bill over a five- or ten-year period. A 5% interest rate is charged on the outstanding principal balance each year.
• Deferred Impact Fees: 4 Parcels totaling $284,869
These assessments are for certain eligible companies whose operations meet specific guidelines established by City Ordinance. The ordinance allows these companies to elect to pay their development impact fees over five years on the property tax roll.
2. Special District Assessments
The following assessments represent Special Districts that are placed on the Tulare County secured property tax roll. Proposition 218 requires that any increase be approved by a vote of the property owners unless the district was created with or has implemented a benefit assessment increase allowance.
• Property and Business Improvement District (PBID): 278 Parcels totaling $447,795
PBID V, with a term of January 1, 2020, through December 31, 2029, was approved on July 15, 2019. The PBID District will benefit from the improvements, projects, programs and activities funded by the assessments. With the approval of Council, the funds are administered by the Downtown Property Owners Association (POA) which was created for this specific purpose. The POA currently subcontracts the daily operation of the PBID to the Downtown Visalians, Inc, a non-profit organization formed to improve the image and economic vitality of the downtown commercial district.
The PBID preliminary amount shown above represents the portion of PBID assessments which can be placed on the tax roll. The remaining PBID assessments are for properties owned by public agencies, which do not pay property tax, and will be billed through City Accounts Receivable. The City Council approved a 2% increase in the annual assessment on May 20, 2024, which is included in this amount.
• Northeast Improvement District: 3,234 Parcels totaling $156,386
This special assessment is for the Northeast Open Space and the assessments are used to develop and maintain the Northeast Area Specific Plan. This includes the maintenance of the landscape and lighting along the medians in St. Johns Parkway, Mill Creek Parkway, Lovers Lane and improvements along Houston Ave.
• Landscape & Lighting Maintenance Districts (L&L): 19,790 Parcels totaling $5,992,681
These special assessments are for the maintenance of improvements in L&L Maintenance Districts. This includes the annual cost of maintaining common area real property improvements in and around specific subdivisions. Each subdivision parcel shares equally in the annual cost of the landscape maintenance. In general, additions to L&L districts lag a year or two when being added to the tax roll. The increase in parcels is due to the creation of new districts and annexations into existing districts. Increases in assessments may be due to these newly added parcels, automatic assessment increases, or the result of a ballot process.
• Landscape & Lighting Parks Construction: 256 Parcels totaling $23,675
These special assessments are for park construction costs that have been financed through a General Fund loan to be repaid over a 20-year period. The FY24/25 assessments are for the Majestic Park loan which will be paid off by 2036.
• Open Space Assessment District: 137 Parcels totaling $13,368
These special assessments are for the costs related to maintenance of landscaping in the district.
• Orchard Walk East/West Utility District: 16 Parcels totaling $52,062
These special assessments are for the debt service costs of bonds related to improvements for underground utilities. The formation of this Assessment District was approved on October 19, 2009, and the bonds will mature on September 2, 2026. As of June 30, 2022, $135,000 of the principal balance remained outstanding.
• Laura and Atwood Water Main Assessments: 18 Parcels totaling $20,021
These special assessments are for extending Cal Water Service water mains to homes in the Laurel and Atwood Street neighborhoods. The cost of the extensions is being repaid from a 15-year bond assessment which the property owners will repay with their property tax payment at 4% interest. The balance is scheduled to be paid off in 2030. As of June 30, 2023, $118,977 of the principal balance remained outstanding.
3. Delinquent Service Charges
The remaining assessments are collection charges which provide a means for the City of Visalia to annually collect money owed to the City which the City has not been able to collect through the normal billing process.
• Utilities: 1,457 Parcels totaling $920,838
These assessments are used for accounts with delinquent service charges for refuse and/or sewer service. Delinquencies collected in this manner are limited to amounts owed in the property owners name at the specific parcel. For delinquent accounts owed by property owners, Finance recalls the uncollected debt from the collection agency and places the past due amount on the tax roll.
• Code Enforcement: 471 Parcels totaling $371,885
These assessments are for code enforcement cost recovery fees, which are based upon administrative costs and costs of enforcement. The fees included are for building, fire department, natural resource conservation, and animal control code violations.
• Weed and Lot Clearing: 61 Parcels totaling $58,893
These assessments are for the clearing of weeds and/or other material that pose a fire hazard on properties. These are assessed by the Fire Department.
Fiscal Impact:
If not approved, this will negatively affect several funds and could potentially require increased fees and charges to subvent non-collectable accounts through alternative billing methods.
Prior Council Action: Council has authorized Finance to submit the annual tax roll for many years to ensure collection of special assessment fees and delinquent service charges.
Other: N/A
Alternatives: Do not authorize Finance to submit the tax roll. This will negatively affect several funds and could potentially require increased fees and charges to subvent non-collectable accounts through alternative billing methods.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to adopt Resolution 2024-12 which allows the City of Visalia to place Miscellaneous Special Assessments on the Tulare County secured property tax roll for Curb and Gutter, Sewer Connection, Deferred Impact Fees, Property and Business Improvement District, Northeast Improvement District, Landscape and Lighting Maintenance District, Landscape and Lighting Parks Construction, Open Space Assessment District, Orchard Walk East/West Utility Assessment District, Laura and Atwood Water Main Assessment District, Delinquent Utilities, Code Enforcement, and Weed & Lot Abatement.
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Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments:
Attachment 1: Resolution 2024-12
Attachment 2: Tax Roll Summary