DATE: June 22, 2021
TO: Mayor and City Council
FROM: Director of Maintenance Services
SUBJECT
Stratford Village Prop. 218 Hearing: Proposition 218 Public Hearing to Receive and Tabulate Property Owner Ballots Regarding Formation and Levying of Assessments for the Stratford Village Flood Control Facilities Improvement Assessment District (MD1-2021), Adopt a Resolution Establishing the Stratford Village Flood Control Facilities Improvement Assessment District (MD1-2021), Approving the Final Engineer’s Report, Ordering the Levy and Collection of Assessments for Fiscal Year 2022, and Appropriating the Budget
RECOMMENDATION
That Council conducts a public hearing pursuant to Proposition 218 to consider objections and protests to the proposed Stratford Village Flood Control Facilities Improvement Assessment District (MD1-2021). If tabulation of the property owner ballots results in approval of the proposed assessment, that Council adopts a resolution establishing the proposed Assessment District, ordering the levy and collection of the approved assessments for Fiscal Year 2022 (Attachment II), appropriating the budget for FY 2022 (Attachment III), and approving the Final Engineer’s Report (Attachment IV).
SUMMARY
Maintenance District 1 (“District”) was established in 1995 as a financial funding mechanism to fund the operation, maintenance, administration, and the capital repair and replacement of the Stratford Village Storm Water Lift Station (SWLS). This critical flood protection infrastructure was constructed specifically as a condition of approval when this neighborhood was built. Twenty-five years later, the funds generated from the annual assessment revenue are no longer sufficient to provide proper operation, maintenance, administration, and the capital repair and replacement of the District’s storm water drainage and pumping infrastructure.
The Engineer’s Report (“Report”) has been prepared by SCI Consulting Group (SCI) (Attachment IV). The Report proposes a new assessment to upgrade and restore this neighborhood’s flood control infrastructure to the condition, efficiency, reliability, and effectiveness that was originally intended.
If the proposed assessment is approved by property owners, the Council may proceed with the forming of Assessment District MD1-2021. If 50% plus one of the weighted returned ballots vote yes, Council may approve two resolutions (Attachment II and III) approving the establishment of the new assessment district, approving the Final Engineer’s Report, ordering the levy and collection of the approved assessments, and appropriating the budget for FY 2022. The FY 2022 assessment rate will be set at $498.00 per property, totaling $86,652 in annual assessment revenue. By approving the proposed assessment, property owners agree to accept a $379,000 temporary transfer of funds from the Storm Water Fund. These transferred monies will be used to pay for needed capital improvements. The increased assessment will provide the funding mechanism to pay back the Storm Water Fund through annual payments over twelve years.
If the proposed assessment is not approved by property owners, staff will move forward with the process of levying the existing MD1 Assessment District for FY 2022. Should a weighted majority plus one of returned ballots vote no, staff will return to Council on July 6, 2021 with the existing MD1 Assessment District’s Preliminary Engineer’s Report and Resolution of Intention and set July 20, 2022 as the public hearing date to approve and order the levy and collection of the original MD1 assessment for FY 2022. The FY 2022 annual assessment rate would remain at $243.92, totaling $42,442 in assessment revenue. By voting no, the property owners agree not to fund the needed capital improvements by not increasing their annual assessment.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution Establishing Assessment District
Attachment III Resolution Funding Recommendation
Attachment IV Engineer’s Report