RECOMMENDATION(S): (CONT'D)
3. CONSIDER whether to adopt, revise, change, reduce, increase, or modify any estimated service charges set forth in the Tentative Annual Report.
4. APPROVE the estimated service charges set forth in the Tentative Annual Report.
5. ADOPT Resolution No. 2022/123, confirming the Tentative Annual Report and levying the charges set forth in the report.
6. DIRECT the Public Works Director, or designee, to prepare a Fiscal Year 2022-2023 Final Annual Report for CSA M-30 that conforms to the County’s official service charge roll for Fiscal Year 2022-2023. (County Service Area M-30 Funds) (District II) Project No. 7499-6X5491.
FISCAL IMPACT:
The levy of the annual service charges in CSA M-30 will provide revenues for police services, park and roadside landscape maintenance, public street maintenance and street lighting services. The CSA M-30 total annual service charge was $57,320.00 for Fiscal Year 2021-2022 and is projected to be $61,502.40 in Fiscal Year 2022-2023. This increase is based on the approved annual escalator outlined in the CSA M-30 formation documents. The annual escalator is equal to the annual change in the Consumer Price Index (CPI) for the San Francisco Bay Area (All Urban Consumers), plus two (2) percent. There are 40 developed parcels in the CSA (Alamo Springs). The service charge per parcel for CSA M-30 was $1,433.00 for Fiscal Year 2021-2022 and will be $1,537.57 for Fiscal Year 2022-2023.
BACKGROUND:
As directed by Article 1012-2.602 of the Contra Costa County Ordinance Code, the Public Works Director prepared a Fiscal Year 2022-2023 Tentative Annual Report on service charges in CSA M-30 and filed it with the Clerk of the Board of Supervisors. CSA M-30 provides police services, park and roadside landscape maintenance, public street maintenance, and street lighting services. The Tentative Annual Report contains a description of each parcel of real property receiving services, the basic service charge for CSA M-30, and the estimated amount of the service charge for each parcel for the fiscal year.
Upon the filing of the Tentative Annual Report, the Clerk of the Board of Supervisors fixed a time, date, and place for a Board hearing on the Tentative Annual Report and for filing objections or protests thereto and published a notice of the hearing as provided in Government Code section 6066.
Following the public hearing, the Board may adopt, revise, change, reduce, increase, or modify any estimated service charge, and shall make its determination upon each estimated service charge as described in the Tentative Annual Report. The service charges in the Tentative Annual Report were computed and apportioned according to a formula that fairly distributes the service charge among all subject parcels in proportion to the estimated benefits conferred on each property from the services provided. Staff recommends approval of the rates and service charges in the Tentative Annual Report without modification.
The service charges in the Tentative Annual Report are higher than the charges levied in Fiscal Year 2021-2022 because they incorporate an automatic adjustment approved by the parcel owners in CSA M-30 in 1997. The adjustment provision allows for an increase each year based upon the Consumer Price Index for the San Francisco-Oakland-San Jose Area (All Urban Consumers) plus two percent (2%). For Fiscal Year 2022-2023 the increase is 5.19%, plus 2% over the Fiscal Year 2021-2022 service charge rates. The Board approved this provision on May 5, 1998.
Adoption of Resolution 2022/123 confirms the Tentative Annual Report and assesses the charges set forth therein but does not levy the charges. The levy of the service charges occurs after the preparation of a Final Annual Report that conforms to the official service charge roll for Fiscal Year 2022-2023. The official service charge roll will be issued by the County Assessor on or about July 1, 2022.
CONSEQUENCE OF NEGATIVE ACTION:
If the Fiscal Year 2022-2023 Tentative Annual Report for CSA M-30 is not confirmed, either as filed or as modified, the service charges set forth in the Tentative Annual Report may not be levied for Fiscal Year 2022-2023. Therefore, the District would be unable to provide police services, park and roadside landscape maintenance, public street maintenance, and street lighting services or an alternate source of funding would have to be identified.