Agenda Item Wording:
title
PUBLIC HEARING - To receive ballots and public testimony on proposed funding changes/assessment increases for 2024/25 of the Marseille Landscape and Lighting Maintenance Assessment District (LLMAD) in the City of Visalia.
body
Deadline for Action: 6/3/2024
Submitting Department: Community Services
Contact Name and Phone Number: Azalia Chavez, Financial Analyst 713-4316; azalia.chavez@visalia.city <mailto:azalia.chavez@visalia.city> Alvin Dias, Parks and Facilities Manager 713-4564; alvin.dias@visalia.city <mailto:alvin.dias@visalia.city>; Renee Nagel, Finance and Technology Director 713-4375; renee.nagel@visalia.city <mailto:renee.nagel@visalia.city>
Department Recommendation:
Staff recommends that City Council takes the following actions:
1. Conduct a Public Hearing to receive ballots and public testimony on the proposed funding changes, amendment, and assessment increases for the maintenance of balloted Marseille Landscape and Lighting Maintenance Assessment District.
2. Direct staff to open and tabulate ballots, and to certify the results.
3. With a majority homeowner vote that approve changes:
a. Direct staff to implement the proposed changes.
b. Authorize the placing of the increased assessment amount on the 2024/25 Property Tax Roll.
Background Discussion:
The Marseille subdivision was originally established and approved by City Council on July 17, 1995, and would be the original 67 lots in phase one of the subdivision. Phase two of the subdivision would be later approved by City Council on November 1, 1999. This would bring the total number of lots assessed in the subdivision to 108. Phase three would be later approved by City Council and annexed into the subdivision on July 16, 2012, bringing the total number of lots to its current total of 175. With each additional phase added to the Marseille subdivision a ballot was mailed to the existing property owners approving the annexation of additional lots.
For the last several years the Urban Forestry Division has received calls with concern from residents within the Marseille subdivision about the common area landscape. Many of these calls were related to the maintenance of the landscape and the deterioration of the plant material. Much of the landscape and irrigation has reached its expected life cycle. The landscape, predominately trees and larger shrubs, were especially affected by several years of drought conditions and state-imposed water restrictions. Staff identified that there were areas where improvement could be made, and started working with the maintenance contractor to improve the level of service that was being performed. Staff also identified an opportunity to complete a landscape enhancement project at one of the entrances to the Marseille neighborhood on N. Akers Ave and W. Buena Vista Ave. This enhancement project installed new plant material, upgraded irrigation, California Gold decomposed granite, and cobblestone ground cover. The project was completed in late 2021.
After the enhancement project was completed, several residents reached out to City staff to discuss potentially making more improvements to the common area landscape. Staff has made some minor improvements, such as restoring the low voltage lighting on the Akers Ave entrance and replacing Cypress trees that were damaged by the large winter storms of 2022. With the cost of these improvements, unexpected tree removals, and increases to the landscape maintenance contract, the district’s cash balance has been depleted and staff cannot complete any further improvements. Urban Forestry staff continued to work with several residents that wanted to explore options to continue improving the common area landscape. To continue these improvements, funding would need to be generated. Residents felt that the majority of the property owners within the Marseille Landscape and Lighting District would vote yes to increase their assessment.
On Saturday July 15, 2023, City staff conducted a community meeting where approximately 50 of the Marseille residents/property owners attended. In this meeting, staff shared information on the current state of funding in the district’s account, maintenance areas, and previous improvements that were completed. Staff also shared the balloting process that would need to be completed to increase the tax assessment to complete further improvements to the common area landscape. Staff answered several questions from residents, and a poll was done asking residents if the majority would be willing to approve the tax assessment. The majority of the residents that attended the community meeting agreed that they would be willing to approve an increase. City staff then started the process of updating an Engineer’s Report with updated maintenance, utility, and enhancement project costs. Due to the cost of completing an enhancement to the entire landscape area and trying to keep the assessment increase affordable for residents, the enhancement project would need to be completed in phases over an eight-year period. The assessment would then be decreased to reflect only the updated maintenance and utility costs in year nine.
On April 19, 2024, the City mailed 175 ballots to parcels within the Marseille (95-02) LLMAD asking property owners to consider an assessment increase for common area landscaping and lighting for their neighborhood. The increase includes an eight-year landscape enhancement project in the neighborhood and updated utility and maintenance costs that have occurred since the Marseille 95-02 District was formed.
Background
The City of Visalia has been allowing the developers of subdivisions to form assessment districts under the Landscape and Lighting Act of 1972, and now under Proposition 218, in lieu of using homeowners’ associations for the maintenance of common features such as common area landscaping, irrigation systems, streetlights, and trees on local streets. The maintenance of these improvements is a special benefit to the development and enhances the land values to the individual property owners in the district. Through an established Landscape & Lighting Maintenance District (LLMAD), each property owner pays an equal portion of the total annual costs to maintain the common landscape areas in their neighborhood and are assessed their portion on their property taxes each year.
PUBLIC HEARING, BALLOTING AND APPROVAL PROCESS
Proposition 218 requires that creation of, additions, or increases to a property-based assessment not previously agreed upon shall be subject to a ballot vote of all of the affected property owners. Each property can only submit one ballot vote, and all votes are equally weighted; approval or denial of the proposed increase is determined by a simple majority of the returned ballots for each LLMAD balloted.
At the public hearing, property owners can address the Council regarding the increase. The City Clerk’s office has collected the sealed returned ballots and will accept any additional ballots up to the close of the Public Hearing. After public testimony has been received, staff will open and tabulate the ballot votes and present the results to Council later in the Council meeting. Should the simple majority of the ballots cast for any balloted LLMAD approve the proposed assessment increase and changes, Council may then approve the recommended changes for the district and the increase will be added to the 2024-25 Tax Roll. Should the LLMAD fail to approve their assessment increase, the LLMAD will not have enough available funding to support continued maintenance of the district at current levels. Staff has been directed to subsequently reduce the level of maintenance of the trees, turf, and shrub areas. The reduction in services will take effect 60 days from the public hearing date.
BALLOTED DISTRICT
Table 1 below indicates the district that was mailed ballots, their current deficit cash balances and the proposed LLMAD and lot assessment increases if proposed ballot is not approved. The City issues ballots to districts that express the desire to increase their annual assessment and have demonstrated that the neighborhood majority is in favor of the increase.
TABLE 1: PROPOSED ASSESSMENTS W/O BALLOT INCREASE
|
Balloted Districts |
Assessment |
|
District # |
Lots |
District Name |
Deficit Cash Bal. 06/30/23 |
Current Annual Assessments |
Proposed Annual Assessments |
Proposed % Increase in Assessment |
|
|
|
|
|
District |
Lot |
District |
Lot |
|
|
95-02 |
175 |
Marseille 1-2 |
($6,584.99)$30,961.00$176.92$34,056.75$194.6110% |
|
|
|
|
|
Fiscal Impact:
Table 2 shows the current and projected financial condition of the Marseille Landscape and Lighting District annual shortfall.
TABLE 2: Projected LLMAD Cash Balances
|
District # |
District Name |
Lots # |
Beg. Cash Balance 06/30/23 |
2023/24 Assessment Revenue |
2023/24Operating Expenses (estimated) |
Ending Balance 06/30/24 (estimated) |
|
95-02 |
Marseille 1-2 |
175 |
($6,584.99) |
$30,961.00 |
($60,017.90) |
($35,641.89) |
Table 3 displays the Marseille Districts proposed annual assessment increase. These figures are estimates for the fiscal year ending June 30, 2025, and will be in effect for the first eight (8) years. However, the proposed increases, if approved, will fund an enhancement project that will include irrigation updates and a new drought tolerant landscape in the common area landscape, raise the assessment enough to eliminate the deficit balance, and pay for maintenance costs on an ongoing annual basis. The increase in the benefit assessment will be implemented in the 2024-25 tax roll.
TABLE 3: PROPOSED ASSESSMENTS
|
Proposed Assessment Years 1 thru 8 |
|
District # |
Lots |
District Name |
Current Annual Assessments |
Proposed Annual Assessment |
Proposed % Increase in Assessment |
|
|
|
|
District |
Lot |
District |
Lot |
|
|
95-02 |
175 |
Marseille 1-2 |
$30,961.00 |
$176.92 |
$133,703.50 |
$764.02 |
332% |
Table 4 displays the Marseille Districts proposed annual assessment increase. These figures are estimates for the fiscal year ending June 30, 2033, and will be in effect on year (9) nine. However, the proposed decrease, if approved, will fund maintenance costs on an ongoing annual basis. The decrease in the benefit assessment will be implemented in the 2033-34 tax roll.
TABLE 4: PROPOSED ASSESSMENTS
|
Proposed Assessment Year 9 |
|
District # |
Lots |
District Name |
Annual Assessments Year 1 thru 8 |
Proposed Annual Assessment Year 9 |
Proposed % Decrease in Assessment |
|
|
|
|
District |
Lot |
District |
Lot |
|
|
95-02 |
175 |
Marseille 1-2 |
$133,703.50 |
$764.02 |
$65,705.50 |
$375.46 |
203% |
Prior Council Action: Council approved the initial creation of each of the LLMAD’s included in this recommendation.
Other: None
Alternatives: N/A
Recommended Motion (and Alternative Motions if expected):
recommendation
1) Move to open the Public Hearing to receive public input on the proposed assessment increases to the balloted Landscape & Lighting Maintenance Assessment District.
2) Certify the results of the balloted District and, if passed, move to approve the recommended assessment increases of the balloted Landscape & Lighting Maintenance District, and place the increases on the 2024-25 Tulare County property tax roll.
end
Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: Marseille Ballot, Engineer’s Report Years 1 thru 8, Engineer’s Report Year 9, Marseille Site Map