HomeMy WebLinkAboutItem 11b - Annual Citywide Street Lighting AssessmentCitywide Street Lighting Assessment District Resolutions
June 1, 2021
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DATE: June 1, 2021
TO: Honorable Mayor and City Council
FROM: Tom Tait, Public Works Services Director
By: Carmen Masud, Senior Management Analyst
SUBJECT: RESOLUTIONS INITIATING PROCEEDINGS FOR THE ANNUAL LEVY
AND COLLECTION OF ASSESSMENTS, APPROVING THE
PRELIMINARY ENGINEER’S REPORT, DECLARING INTENTION TO
LEVY AND COLLECT ASSESSMENTS FOR FISCAL YEAR 2021-22, AND
APPOINTING A TIME AND PLACE FOR A PUBLIC HEARING FOR THE
ARCADIA CITYWIDE LIGHTING DISTRICT NO. 1
Resolution No. 7360 initiating proceedings for the annual levy and collection
of assessments for the Arcadia Citywide Lighting District No. 1 pursuant to
the provisions of Part 2 of Division 15 of the California Streets and Highways
Code and ordering the preparation of the Engineer’s Report
Recommendation: Adopt
Resolution No. 7361 approving the preliminary Engineer’s Report of Willdan
Financial Services for the Arcadia Citywide Lighting District No. 1
Recommendation: Adopt
Resolution No. 7362 declaring its intention to levy and collect assessments
within the Arcadia Citywide Lighting District No. 1 for Fiscal Year 2021-22
and appointing a time and place for a public hearing
Recommendation: Adopt
SUMMARY
The Citywide Lighting District No. 1 (“Citywide Lighting District” or “District”) was formed
in the City of Arcadia pursuant to the Landscaping and Lighting Act of 1972 and
Proposition 218 balloting requirements. The District was formed for the purpose of
partially funding the ongoing operation, maintenance, and servicing of the City’s street
lighting system. The District budget for Fiscal Year 2021-22, as proposed, decreased by
1%, or $12,800. Since the budget decreased, there is no proposed assessment rate
increase for Fiscal Year 2021-22. The annual assessment rate for a single-family property
owner in Zone 1 will remain at $20.04; and for a single-family property owner in Zone 2,
the annual assessment rate will remain at $34.17.
Citywide Street Lighting Assessment District Resolutions
June 1, 2021
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It is recommended that the City Council adopt the Resolutions initiating proceedings for
the annual levy and collection of assessments, approving the preliminary engineer’s
report, declaring its intention to levy and collect assessments for Fiscal Year 2021-22,
and appointing a time and place for a public hearing for the Arcadia Citywide Lighting
District No. 1.
BACKGROUND
The City’s former Street Lighting District was originally established through the Street
Lighting Act of 1919 in the early 1950s and was set to expire on June 30, 2010. This
would have resulted in a loss of approximately $420,000 in annual revenue to the City
beginning in Fiscal Year 2010-11 and would have impeded the ability to properly maintain
the City’s street lights. Renewal of the Lighting District could no longer be done through
the Street Lighting Act of 1919 because the assessments were based on the value of real
property, which Proposition 13 prohibits. Additionally, not all properties within the City
were included in the original assessment district, which resulted in an inequity of
assessments.
To address this issue, in 2009, the City Council directed the formation of a Citywide
Lighting District via the Landscaping and Lighting Act of 1972. Under this Act,
assessments are based on the special benefit that street lighting provides to properties
within the Citywide Lighting District area. Proposition 218 noticing and balloting
requirements were met, and on August 3, 2010, the City Council by Resolution adopted
the Engineer’s Report for the formation of the Citywide Lighting District and approved the
levy and collection of assessments beginning in Fiscal Year 2010-11.
To ensure appropriate allocation and annual levy of assessments based on proportional
special benefits, the Citywide Lighting District established two benefit zones to separate
general benefit and special benefit.
• Zone 1 includes properties along major thoroughfares and includes parcels that
receive the general benefit of street lighting along arterial streets.
• Zone 2 includes properties in residential neighborhoods that specifically benefit
from maintenance of street lighting on local streets.
In addition to the use of zones, the method of apportionment established for the Citywide
Lighting District to reflect the proportional special benefit of each parcel utilizes a weighted
methodology of apportionment referred to as an equivalent benefit unit (“EBU”)
methodology. The proportional special benefit calculation for each parcel is determined
by land use, number of units, and acreage. Furthermore, a benefit multiplier factor is also
employed to account for varying density levels of street lighting within the City, which
ranges from a standard level of street lighting to no street lighting. Some areas in the City
were developed with less lighting on their streets. These sparsely lit neighborhoods still
receive special benefits from their local lights even though their overall lighting density is
Citywide Street Lighting Assessment District Resolutions
June 1, 2021
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less than those streets with full lighting. They receive 20% of the standard lighting density
and pay 20% of the annual assessment rate. Properties in areas of the City that do not
have street lighting do not pay a street lighting assessment fee. This methodology has
been in place since Fiscal Year 2010-11.
DISCUSSION
The City’s Fiscal Year 2021-22 proposed Budget for the Lighting District is $1,265,400,
of which $1,066,358 has been determined to be of special benefit to properties within the
Citywide Lighting District based on the assessment methodology. However, the District
was established to fund only a portion of this amount. As a result, the City will be
contributing approximately 60%, or $758,317, of the total street lighting budget, while the
property owners (“District”) will pay about 40%, or $507,083, of street lighting costs. The
Citywide Lighting District budget for Fiscal Year 2021-22, as proposed, decreased by 1%,
or $12,800. The decrease is due to a decrease in salaries and wages. Since the budget
decreased slightly, the Fiscal Year 2021-22 annual assessment rate for a single-family
property owner in Zone 1 will remain at $20.04; and for a single-family property owner in
Zone 2, the annual assessment rate will remain at $34.17.
As part of the District formation, an assessment range formula was also developed to
provide reasonable increases and inflationary adjustments that are associated with
providing improvements for the Citywide Lighting District. The maximum rates for the
Citywide Lighting District are annually adjusted by an amount not to exceed 3% each
fiscal year. The adjusted maximum assessment rate is calculated independently of the
Citywide Lighting District’s annual budget. Although the City could increase the annual
assessment rate to the maximum assessment rate, the proposed property owners’
assessment rate will not change this fiscal year.
Using the single-family property as the baseline for the assessment, the table below
shows the annual assessment rate levied in Fiscal Year 2020-21 and the proposed Fiscal
Year 2021-22 annual assessment rates for Zones 1 and 2:
1FY 2021-22 Maximum Assessment Rate for Zone 1 is $23.15; Zone 2 is $39.36
FY 20-21
Assessment Rate
FY 21-22
Assessment Rate1
Lighting District Total Budget $1,278,200 $1,265,400
Zone 1 (Arterial Lights)
Sparse Lighting
$20.04
($4.01)
$20.04
($4.01)
Zone 2 (Local Lights)
Sparse Lighting
$34.17
($6.83)
$34.17
($6.83)
Citywide Street Lighting Assessment District Resolutions
June 1, 2021
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At the June 15, 2021, City Council Meeting, a public hearing will be conducted to allow
the public an opportunity to provide comment regarding the levy and collection of
assessments for the District. Fees can only be adopted after the conclusion of the public
hearing.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental
Quality Act (“CEQA”) under Section 15061(b)(3) of the CEQA Guidelines, and it can be
seen with certainty that it will have no impact on the environment. Thus, this matter is
exempt under CEQA.
FISCAL IMPACT
Fees collected under the Citywide Lighting District will help defray the total maintenance
costs of lighting in the subject areas. Upon conclusion of the public hearing and adoption
of the engineer’s report, a total of $507,083 will be levied and collected under the Citywide
Lighting District. The levy will not exceed the cost of providing the subject services to the
areas nor will the levy exceed the Maximum Assessment Rates allowed. The levy has
been set to ensure that the cost to the property owner does not exceed the special benefit
to that property. Based on the recommended assessments, the City of Arcadia will
contribute $758,317 to the street lighting system in Fiscal Year 2021-22.
RECOMMENDATION
It is recommended that the City Council find the following Resolutions are categorically
exempt pursuant to the California Environmental Quality Act (“CEQA”); and adopt:
a. Resolution No. 7360 initiating proceedings for the annual levy and collection of
assessments for the Arcadia Citywide Lighting District No. 1 pursuant to the
provisions of Part 2 of Division 15 of the California Streets and Highways Code
and ordering the preparation of the Engineer’s Report.
b. Resolution No. 7361 approving the preliminary Engineer’s Report of Willdan
Financial Services for the Arcadia Citywide Lighting District No. 1.
c. Resolution No. 7362 declaring its intention to levy and collect assessments within
the Arcadia Citywide Lighting District No. 1 for Fiscal Year 2021-22 and appointing
a time and place for a public hearing.
Citywide Street Lighting Assessment District Resolutions
June 1, 2021
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Attachments: Resolution No. 7360
Resolution No. 7361
Resolution No. 7362