RECOMMENDATION(S): (CONT'D)
3. DIRECT the Clerk of the Board to file certified copies of the Final Annual Report and Resolution No. 2019/482 with the County Auditor-Controller.
4. DIRECT the County Auditor-Controller to include the service charges on the tax roll for Fiscal Year 2019-2020, the service charge for each parcel to appear as a separate item on the tax bill, pursuant to County Ordinance Code section 1012-2.614.
FISCAL IMPACT:
The levy of the annual service charges in CSA M-28 will provide revenues for the continued operation and maintenance of a water supply system. The CSA M-28 annual service charge was $104,027.22 for Fiscal Year 2018-2019 and will be $107,695.25 in Fiscal Year 2019-2020. This increase is based on the change in the Consumers Price Index (CPI) for the San Francisco Bay Area (All Urban Consumers). The annual service charges for CSA M-28 will be levied on one parcel in Fiscal Year 2019-2020.
BACKGROUND:
Since 1991, the Consumer Price Index (CPI) for the San Francisco Bay Area All Urban Consumers and the costs to operate and maintain the improvements increased, however the charge rate remained constant until Fiscal Year 2007-2008. In Fiscal Year 2007-2008, the charge rate was increased per parcel with an allowance for an adjustment each subsequent year based upon the Consumer Price Index (CPI) for All Urban Consumers.
On June 11, 2019, the Board of Supervisors conducted a public hearing and adopted Resolution No. 2019/132 confirming the Fiscal Year 2019-2020 Tentative Annual Report on proposed service charges for CSA M-28. CSA M-28 provides continued operation and maintenance of a water supply system.
On July 1, 2019, the County Assessor released the official assessment roll for Contra Costa County for Fiscal Year 2019-2020. Thereafter, pursuant to Section 1012-2.612 of the County Ordinance Code, the Public Works Director directed staff to determine whether the Tentative Annual Report required revision in order to conform to the official assessment roll. Any change to an estimated basic service charge or estimated service charge notated in the Tentative Annual Report may only be accommodated as a result of changes in ownership, changes of address, the subdivision of an existing parcel or changes in the use code of a parcel. Upon review of the official assessment roll, staff determined that no revisions were required. The Tentative Annual Report is the Final Annual Report.
The service charges in the Final Annual Report are higher than the charges levied in Fiscal Year 2018-2019 because they incorporate an automatic adjustment approved by the property owner in CSA M-28 in 2007. The annual adjustment provision allows for an increase each year based upon the change in the Consumers Price Index (CPI) for the San Francisco Bay Area (All Urban Consumers). For Fiscal Year 2019-2020 the increase is 3.53% over the Fiscal Year 2018-2019 service charge rates. The Board approved this provision on August 7, 2007.
The Board may confirm the Final Annual Report by resolution. Resolution No. 2019/482 serves to confirm the Final Annual Report and constitutes the levy of the service charge for Fiscal Year 2019-2020.
CONSEQUENCE OF NEGATIVE ACTION:
If a resolution confirming the Fiscal Year 2019-2020 Final Annual Report is not adopted, service charges for CSA M-28 would not be levied or collected in Fiscal Year 2019-2020 and CSA M-28 would be unable to provide continued operation and maintenance of a water supply system and an alternate source of funding would have to be identified.