SR - LMD-15-1 - ADJUSTMENT FY 2015-16 BUDGETpP 0Ra,
AGENDAITEM
October 13, 2015
TO: Honorable Mayor and
Members of the City Council
THRU: Rick Otto
City Manager
FROM: Marie Knight W ' r '
Community Services Direco
ReviewedNerified B
City Manager e
Finance Director
To Be Presented By: Marie Knight
X Cons Calendar
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Plan/Environ
1. SUBJECT
Adjustment of FY 15 -16 (FY16) budget for Landscape Maintenance District (LMD) 15 -1 (Fund
291).
2. SUMMARY
In FY16, assessment revenues of $328,108.00 will be collected from property owners in the newly
created LMD 15 -1 in the Santiago Hills development. When combined with an increased
contribution of $22,516.00 from Santiago Canyon College for landscape maintenance adjacent to
the College, related assessment revenues will increase a total of $350,624.00 in FY16. These
revenues will allow for additional expenditures for higher levels of maintenance, and for gradual
funding for capital projects in the Santiago Hills Landscape Assessment District in the current and
future fiscal years.
3. RECOMMENDED ACTION
1.) Increase the revenue appropriation in Revenue Account 291.0000.40360.00000 by
$328,108.00 as a result of the assessment from LMD 15 -1;
2.) Increase the revenue appropriation in Revenue Account 291.7026.48230.00000 by $22,516.00
as a result of an increased reimbursement by Santiago Canyon College; and
3.) Authorize an appropriation of $316,282.00 from Revenue Account 291.0000.40360.00000
and $22,516.00 from Revenue Account 291.7026.48230.00000, for a total appropriation of
$338,798.00 to the following expenditure accounts:
291.7026.51200.00000 (Water) $8,531
291.7026.51231.00000 (Electricity) $2,300
291.7026.51431.00000 (Landscape Maintenance) $148,387
291.7026.51700.00000 (Contractual Services) $61,198
291.7026.53410.00000 (Operating Supplies) $3,382
291.7024.56015.20255 (Santiago Hills LAD — General Renovations) $115,000
$338,798
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ITEM 5A 10/13/15
4. FISCAL IMPACT
Upon appropriation, funds will be available to cover the cost of increased maintenance operations
in the Santiago Hills LMD.
5. STRATEGIC PLAN GOAL(S)
GOAL 3: Enhance and promote quality of life in the community
a. Refurbish, maintain, develop and/or expand public -use places and spaces.
6. GENERAL PLAN IMPLEMENTATION
Infrastructure Element Goal 3.0: Ensure adequate maintenance of public rights -of -way to
enhance public safety and improve circulation.
Policy 3.2: Provide sufficient levels of street sweeping, landscaping, graffiti abatement, shopping
cart and bulk -item removal from streets, sidewalks, alleys, and other public rights -of -way.
7. DISCUSSION and BACKGROUND
On July 14, 2015 the City Council adopted Resolution 10879 approving the Engineer's Report,
Confirming Diagram and Assessment, and Ordering Levy of the Santiago Hills Landscape
Maintenance District No. 15 -1 Assessment for FYI 6.
This increased assessment will generate an estimated $350,624.00 in revenue as follows:
• $328,108.00 through a levy on residential and commercial properties in the District;
• $22,516.00 from Santiago Community College to reimburse the District for maintenance
conducted by the District on behalf of the College.
The collection of the assessments will begin in the November 2015 property tax billing cycle. The
increased revenue of $350,624.00, combined with the estimated revenue of $575,281.00 from the
existing LMD 86 -2, will be approximately $925,905 in FY16. This amount is adequate for the
annual maintenance and servicing of the District improvements plus a gradual capital improvement
program.
8. ATTACHMENTS
None
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ITEM 10/13/15