HomeMy WebLinkAbout091024-03.1 LLAD
STUDY STUDY SESSION MEMORANDUM 3.1
TO: Mayor and Town Council September 10, 2024
SUBJECT: Review of Town Lighting and Landscape Assessment District 1983-1
BACKGROUND
Since the Town’s incorporation in 1982, a portion of the Town’s maintenance budget has
been funded through assessments levied by the Danville Street Lighting and Landscape
Assessment District No. 1983-1 (LLAD). High level maintenance of our extensively used
community parks and facilities, landscaping in major roadside and median areas, and
street lighting to enhance community safety have been identified as high priorities by our
residents and Town Council.
Every property in Danville is in the LLAD, which consists of four separate benefit zones:
• Zones A and B pay for roadside landscape maintenance (properties are located in
either A or B)
• Zone C pays for street lighting (properties are included in Zone C if they specially
benefit from street lighting)
• Zone D pays for fifty percent of park and community facilities maintenance (all
properties in Town are in Zone D)
The passage of Proposition 218 in 1996 created new procedural and substantive
requirements for all LLADs in the state, the most significant being that any existing LLAD
assessments and any future increases require approval by the majority of property
owners participating in a mail out ballot process.
In 1997, property owners in Town ratified the assessments existing at that time with more
than 87% support. In 2003, property owners approved an increase in assessments to the
current levels. The new rates did not include any annual CPI or escalator, and the Town
has not proposed any additional increases in assessments during the past 20-plus years.
Current (2003) rates for a single-family residence are:
• Zone A $40.20
• Zone B $179.50
• Zone C $58.50
• Zone D $67.80
LLAD 1983-1 2 September 10, 2024
Most commonly, single family owners will fall either within Zones A and D with a total
annual assessment of $108.00, or Zones B, C and D with a total annual assessment of
$305.80. Multi-family and non-residential properties have a different assessment formula
that will be described in greater detail below.
DISCUSSION
Revenue and Expenditure Summary
With the LLAD assessment rates remaining unchanged since 2003, total revenue has been
essentially flat during that time - $3,016,268 in FY 2003/04 compared to $3,064,686
forecast for FY 2024/25. During that same time period, LLAD annual operating
expenditures have increased from $2,726,950 to a budget of $5,223,977. This represents
an increase of $48,418 (1.6%) in revenue compared to a $2,497,027 (91.5%) increase in
expenditures. The August 15, 2023 Study Session Memorandum, which goes into greater
detail with revenues, expenditures and rates, is included as Attachment A to this
memorandum.
A significant portion of the increased costs are attributable to utility costs that are largely
outside of the Town’s control. Direct water and electricity costs have increased by $1.41
million, accounting for over 56% of the expenditure increase. Despite steps taken by the
Town to curb water and electricity usage, these costs are expected to continue to increase
substantially in future years. It should also be noted that the total expenditure figures
cited include operating expenses only, and do not include capital maintenance costs. For
FY 2024/25, capital maintenance costs will add another approximately $1.3 million to the
total LLAD-related expenses.
Summary Table
Year
Annual
Revenues
Annual
Operating
Expenditures Difference
Difference –
Including
Capital
Maintenance
2003/04 $3,016,268 $2,726,950 $289,318 N/A
2024/25 $3,064,686 $5,223,977 -$2,159,291 -$3,464,791
Operating expenditures have significantly outpaced revenues since the last assessment
increase in 2003 and are expected to continue to do so moving forward, absent an increase
in assessment revenues.
LLAD 1983-1 3 September 10, 2024
Methodology
As with most areas of municipal law in California, the legal landscape governing
assessment districts has continued to change and evolve since the Town’s LLAD was
initially formed in 1983 and the most recent assessment rate increase in 2003. This is
particularly true in determining and quantifying “special” benefit to property owners
versus “general” benefit to the public at large. A preliminary benefit analysis has been
performed to quantify and segregate the special versus general benefits provided by the
landscaping, parks, and streetlighting improvements maintained with LLAD revenues.
The preliminary benefit analysis performed consisted of the following:
• All improvements were evaluated to confirm eligibility pursuant to the
Landscaping and Lighting Act of 1972.
• Improvements were mapped in GIS to identify the location of each improvement
to consider proximity to properties within the Town.
• Utilization of improvements was considered by conducting park user surveys and
analyzing likely travel routes per Google Maps.
• Improvements were categorized as either providing a Town-wide benefit or a local
benefit to properties in close proximity.
• A standard service population for each type of land use in the Town was
established to assign assessment rates proportionately.
The benefit analysis will be used to develop an assessment methodology and assessment
rates that accurately and equitably allocate the cost of the public improvements to each
parcel within the Town. This will result in proposed increased assessment rates that
would partially or fully fund the annual shortfall for eligible expenditures.
The preliminary benefit analysis would modify the existing zone structure (Zones A
through D) based on direct benefits derived by property owners. While there would
continue to be two zones for roadside landscape maintenance (Zones A and B), street
lighting (Zone C) and park maintenance (Zone D) would be split into two zones each to
account for special benefit to property owners versus general benefit to the public.
For Zone C, the first zone would correspond to arterial street lighting that provides a
Town-wide benefit while a second zone would be for local street lighting providing a
benefit to proximate properties. Similarly, Zone D would have one zone for community
parks that provide a Town-wide benefit and a second zone for neighborhood parks,
which benefit those that live within a half mile radius of a park. These modifications
would result in a total of six assessment zones rather than the current total of four.
The Town’s long-time LLAD District Engineers, Francisco and Associates, will be
available at the Study Session to respond to any specific questions about the proposed
methodology.
LLAD 1983-1 4 September 10, 2024
Potential Assessment/Revenue Scenarios
As described above, current LLAD revenues are not sufficient to fully fund eligible
maintenance costs, resulting in an annual shortfall of approximately $2.1 million
compared to operating expenses, or approximately $3.4 million compared to operating
plus capital maintenance expenses. Staff has worked with Francisco and Associates to
develop several assessment options that would fully or partially fund eligible LLAD
expenses.
The table in Attachment C compares current assessments for each zone to three potential
options for new assessments that would help address the existing funding shortfall.
Property owners currently fall into one of four assessment scenarios, depending on the
location of their property and the direct benefits received, which results in their total
assessment. The assessments for Options 1-3 are shown as a range because there are
different scenarios that a property may fall within based on the two new zones that would
be added, as described above. The number of properties that fall into each of the current
four scenarios is also included.
Option 1 represents what the assessments would be if rates were increased to fully cover
the operating and capital maintenance costs, while Option 2 shows the assessment rates
associated with funding the total eligible operating - but not capital maintenance - costs.
Option 3 is provided to show a lesser assessment rate increase that would partially fund
the expenditures – approximately two-thirds of the operating costs shortfall. Each of the
options are based on current year revenues/expenditures and it may be appropriate to
consider including an annual escalator to help the rates keep pace with inflation. Please
note that the exact rates may vary slightly as they are finalized.
One other potential modification to the LLAD would address how multifamily rental
properties are assessed (i.e., apartments). Currently, these properties are assessed
without consideration of the number of housing units, resulting in a significantly lower
assessment than what is typical for other multifamily properties containing for sale
condominiums or townhouses. While each individual owner within condominium or
townhome developments currently pays a LLAD assessment similar to that of a single-
family residence, an apartment complex with the same number of housing units pays
only a very small fraction of that total assessment amount, as the rate is based on number
of parcels and acreage rather than residences despite the level of benefit being the same.
It is worth noting that the Town’s new Housing Element plans for higher numbers of
housing units to be built over the next decade, exceeding earlier growth forecasts for the
Town. In addition, the expectation is that the vast majority of new development will come
in the form of multifamily rather than single family units. This state-driven paradigm
shift was neither known nor anticipated in 1983 or 2003. The proposed rate structure
options would address this by assessing multifamily properties at 0.6 of the single-family
residential rates per housing unit.
LLAD 1983-1 5 September 10, 2024
Outreach Strategy
In anticipation of taking a potential LLAD rate adjustment to property owners in 2025,
the Town started messaging earlier this year to inform residents of its purpose and
benefits. An article about the LLAD was included in the fall 2023 Live Locally Quarterly
Newsletter, and again in the summer 2024 newsletter. The key messages included: a) the
purpose of the LLAD; b) how the funds are managed; c) how property owners are directly
contributing to the quality of life in Danville through this assessment; and d) the
assessment amount has not been increased in more than 20 years.
FPPC rules outline what messaging can and cannot include, and in general the messages
must be conveyed in a manner that is “consistent with the normal communication pattern
for the agency.” To educate the community about the assessment, we have started to
work in LLAD-related content to our usual platforms:
• Social Media: Regular social media posts about LLAD-funded features of the Town
reference the LLAD, and thank residents for helping to keep Danville beautiful.
• Quarterly Newsletter: When LLAD-funded projects are featured, the article would
mention the source of the funding. The summer newsletter included an article
focusing on the low assessment with a chart showing how other costs of
maintenance have increased while the assessment has not. The winter newsletter
could include additional information about specific potential increases in the
assessment.
• Website: The LLAD info on the website has been expanded, and a short URL
assigned: www.danville.ca.gov/llad. The page will continue to be updated to
include comparison charts, maps, and articles. Social media posts and articles will
direct visitors to the updated page, which can later be transitioned to a
www.danvilletowntalks.org page if the Town wishes to create surveys or receive
comments on the potential assessment increase.
These communications activities will help ensure that once the property owners are
presented with a ballot, they will better understand the LLAD and how it impacts their
quality of life.
Next Steps
Following Town Council discussion and feedback regarding the potential for increasing
LLAD assessments, Town staff will continue to work with Francisco and Associates to
finalize the methodology and other information related to the process, before returning
to Council in early fall. Informational and educational efforts related to proposed changes
to the LLAD and assessment rates would take place in early 2025.
LLAD 1983-1 6 September 10, 2024
Notices and ballots would be mailed to property owners in March/April 2025. A public
hearing would follow a minimum of 45 days after the notices and ballots being mailed,
at which time the ballots would be tabulated. The outcome is determined based upon
whether there is a majority protest (i.e., if more than 50% of the assessment-weighted
ballots returned oppose the increased assessment). If there is no majority protest, the
Town Council may adopt a resolution approving the Final Engineer’s Report and confirm
the increase in assessments. Francisco and Associates would then complete the necessary
filing with the County Tax Assessor, and the new assessment amounts would be reflected
on FY 2024/25 property tax bills.
RECOMMENDATION
Consider information provided by the Town staff and Town consultants and provide
direction to Town staff regarding potential changes to LLAD assessment rates.
Prepared by:
David Casteel
Maintenance Services Director
Robert B. Ewing
City Attorney
Attachments: A - Francisco and Associates Memo
B – August 15, 2023 Study Session Memorandum
C – Assessment Rate Comparison
1
MEMORANDUM
July 20, 2023
TO: Dave Casteel, Maintenance Services Director, Town of Danville
FROM: Francisco & Associates
SUBJECT: Town of Danville Street Lighting and Landscape Assessment District No.
1983-1
Purpose
The Town of Danville (the “Town”) established the Street Lighting and Landscape
Assessment District No. 1983-1 (the “LLAD”) for the purpose of providing a mechanism
to fund the annual cost to operate, maintain, service, and replace the Town’s public
landscape, streetlight, and park improvements (the “Public Improvements”). The annual
assessments generated by the LLAD are currently insufficient to fund the Public
Improvements at the level to which the Town’s constituents are accustomed without an
annual contribution from the Town’s General Fund. The required annual General Fund
contribution is not sustainable, and therefore not a viable long term funding source for the
Public Improvements. For this reason, the Town is exploring options to fund the annual
shortfall and to ensure there is an adequate and stable source of funding for the future.
The purpose of this memorandum is to assist Town staff and the Town Council in
determining how best to address the LLAD’s annual funding shortfall. To this end,
provided in the following sections is an overview of the Town’s LLAD, an outline of the
process required to increase LLAD assessments to a level that can sufficiently cover the
annual maintenance costs of the Public Improvements as well as an outline of the process
to establish either a general or special tax as alternative funding strategies. Additional
considerations in evaluating funding strategies are also included.
Background
Upon incorporation, the Town inherited several street lighting districts from Contra Costa
County. In 1983, these street lighting districts were consolidated into a single Town-wide
Lighting and Landscape Assessment District, now known as the Town’s LLAD 1983-1.
The LLAD was expanded in 1987 to authorize the use of funding for major roadside and
median landscaping, and authorization was extended to include parks and related
recreational facilities in 1990. In 1997, in order to comply with new legislation at the time
(Proposition 218), the LLAD was confirmed by the Town’s property owners with
overwhelming support, receiving more than 87% approval.
2
Since formation, it has been the Town’s intent that the LLAD’s annual assessments will
fully or, at minimum, significantly fund the maintenance, operation, and replacement of
the Public Improvements. For this reason, in 2003 the Town’s property owners approved
an increase in the assessments to provide the Town with the additional funding necessary
at that time to maintain and operate the Public Improvements. The Town has been levying
the assessment annually, but the LLAD’s assessment rates have remained unchanged
since the 2003 increase. Despite the unchanged assessment rates, the costs to maintain
and operate the Public Improvements have continued to rise, leading to a projected
General Fund contribution of approximately $3.5 million dollars for Fiscal Year 2023-24.
Unfortunately, this annual General Fund contribution is not sustainable in the long term.
To maintain the current level of service in future years, the Town is exploring options to
increase funding for the maintenance, operation, and replacement of the Public
Improvements. If the current funding strategy remains unchanged, there may be a need
to reduce services to align revenues with expenditures.
There are currently two options identified to fund the annual shortfall: 1) An Increase of
the LLAD Assessments, and 2) Establishment of a Local Tax. Outlined below are
summaries of the process to increase the LLAD’s assessment rates and the process to
establish a local tax, both of which are funding strategies available to the Town for
consideration.
Increasing LLAD Assessments
In order to address the existing funding shortfall and the funding needs of tomorrow
through an increase of the LLAD assessment rates, the Town will need to conduct a
Proposition 218 proceeding. The process to conduct a Proposition 218 proceeding to
increase LLAD assessments will take approximately six to nine months, and includes
several steps which are summarized below:
• Perform a benefit analysis of the relevant Public Improvements to determine the
costs to maintain, operate, and replace the Public Improvements, as well as
identify the benefits to be conferred by the Public Improvements to property within
the Town.
• Determine proposed assessment rates based on the prepared benefit analysis.
• The Town Council approves a resolution initiating the proceedings to establish a
new LLAD and directs City staff to prepare an Engineer’s Report.
• Prepare an Engineer’s Report that includes the benefit analysis and proposed
assessment methodology and rates.
• The Town Council receives and approves the Preliminary Engineer’s Report and
sets a date and time to hold a public hearing on the matter.
• Mail notices and ballots to all affected property owners a minimum of 45 days prior
to the scheduled public hearing.
• The Town Council conducts a Public Hearing and tabulates the returned ballots. If
there is no majority protest, the Town Council can adopt a resolution approving the
3
Final Engineer’s Report and confirming the increase in assessments. A majority
protest exists if more than 50% of ballots returned, weighted by proposed
assessment, oppose the increased assessment.
It is important to note, the legal landscape has changed since the LLAD was initially
formed in 1983 and since the assessment rates were last increased in 2003. For this
reason, the benefit analysis will require a thorough review of the Public Improvements.
This review will include identifying the location of existing and planned Public
Improvements, identifying the costs to maintain, operate, and replace both the existing
and future Public Improvements, and determining what benefits are conferred to property
from the Public Improvements. The benefit analysis will be used to develop a new
assessment methodology that equitably allocates the costs of the Public Improvements
to each parcel within the Town, resulting in the proposed increased assessment rates that
will fund the annual shortfall.
Passing a Local Tax
Another commonly utilized funding mechanism by local public agencies across the state
involves passing a local tax to fund services. Pursuant to state law, agencies may
consider placing either a general or special tax before local voters for their consideration.
The following is a brief description of both options.
General Taxes
A general tax is one which is used to help pay for “general governmental services” so it
would not be specifically earmarked for maintenance purposes. However, under current
law, it is possible to place a general tax on the ballot along with a non-binding advisory
measure, which asks voters to express their preference for how the tax proceeds should
be spent. However, a ballot initiative proposed by the California Business Roundtable
(qualified for the November 2024 ballot) would specifically eliminate the use of advisory
measures tied to general taxes if approved. General taxes must be placed on the ballot
by a 2/3’s vote of the council and, absent an emergency, must be submitted to the voters
at a regularly scheduled election for the council. General taxes can be approved by a
simple majority vote.
Special Taxes
A special tax is one that is earmarked for a specific purpose(s), such as funding the
maintenance, operation, servicing, and replacement of the Public Improvements. The
process to establish a special tax requires two-thirds registered voter approval and can
be submitted to the voters at any election. The process would take approximately seven
to twelve months. The process is summarized below:
4
• Identify the relevant Public Improvements to be funded by the special tax and
determine the costs to maintain, operate, and replace the Public Improvements.
• Establish the proposed tax rate structure for property within the Town and
determine the special tax rates needed to fund the costs of the Public
Improvements.
• The Town Council approves a resolution establishing the ballot question, outlining
the special tax rates and rate structure, and directing the County Registrar to place
a measure on the upcoming election’s ballot.
• Registered voters (not property owners) within the Town’s boundaries will vote on
the special tax measure at the upcoming primary or general election. If two-thirds
of the voters support the special tax, the tax is approved and may be levied in
subsequent years.
• The Town Council adopts a resolution confirming the results of the election and
authorizing the levy of the special tax.
The upcoming primary and general elections are in March and November of 2024. To be
eligible to place a ballot measure on the March 2024 ballot (which would have to be a
special tax), the Town must complete the necessary steps of developing a rate structure
and tax rates early enough for the Town Council to approve a resolution by the end of
October 2023. Similarly, for inclusion on the November 2024 ballot (which could be a
general or special tax), these steps must be finalized and approved by the Town Council
by the end of July 2024.
Additional Considerations
It is recommended that two additional items be considered when evaluating funding
strategies to address the existing LLAD’s funding shortfall: 1) the inclusion of an annual
escalation factor, and 2) the type and level of public education and outreach efforts that
may be required to educate property owners and/or the electorate about the LLAD’s
purpose, the existing funding shortfall and the funding strategy the Town elects to pursue.
1. The inclusion of an annual escalation factor would allow any increase in LLAD
assessment rates or a newly established special tax to keep pace with annual
inflationary increases in the costs to maintain and operate the Public
Improvements. Typically, annual escalation factors are tied to a local index. A local
index commonly utilized by public agencies in the region is the U.S. Bureau of
Labor Statistics Consumer Price Index for All Urban Consumers or Urban Wage
Earners and Clerical Workers for the San Francisco, Oakland, Hayward Area of
California.
2. Public outreach and education efforts ensure that the Town’s electorate is
educated and well informed of the issues and circumstances experienced by the
Town as well as ensure that the electorate understands the proposed funding
solution. Public education and outreach efforts includes community meetings and
mailers informing the electorate of the Town’s funding situation and the avenue
proposed to generate the needed funding to sustain the Public Improvements in
5
the future. These communication efforts lead to a more informed constituency and
often increase the likelihood of the electorate approving the proposed funding
strategy.
Summary
It has now been twenty years since the Town last asked property owners for an increase
in assessment rates for LLAD 1983-1. Absent any CPI escalator and given that only
minimal growth has occurred in Danville during this time, District revenue growth has
fallen well short of increased District expenses. Based on the options outlined above,
there are various matters to consider when determining how best to fund the annual
shortfall associated with the Town’s Public Improvements. Below is a summary of the
proposed funding strategies included herein to assist the Town Council and Town staff in
determining how best to fund the Town’s Public Improvements.
• The process to establish or increase the LLAD assessment will result in the
property owners returning ballots in support or opposition to the proposed
assessment. In order to move forward, a majority of the ballots returned (weighted
by assessment amount) would need to support the increase of LLAD assessments.
The process to increase the LLAD assessments typically takes approximately six
to nine months and can be initiated at the City’s discretion.
• The process to establish a special tax will result in a registered voter election that
will take approximately seven to twelve months and will likely need to be timed to
align with either a primary or general election. In order to move forward with the
establishment of a special tax, two-thirds of the votes cast in the election would
need to support the establishment and levying of the special tax.
When selecting a funding strategy, it is important to obtain the pulse of the community,
determine how best to communicate with the Town’s constituents, to have a clear
message, and that the constituents understand not only what is being asked of the
community but also how the approval or failure of the proposed strategy may impact the
Town and its constituents.
STUDY STUDY SESSION MEMORANDUM 3.1
TO: Mayor and Town Council August 15, 2023
SUBJECT: Review of Town Lighting and Landscape Assessment District 1983-1
BACKGROUND
Since the Town’s incorporation in 1982, a portion of the Town’s maintenance budget has
been funded through assessments levied by the Danville Street Lighting and Landscape
Assessment District No. 1983-1 (the “LLAD). High level maintenance of our extensively
used community parks and facilities, landscaping in major roadside and median areas,
and street lighting to enhance community safety have been identified as high priorities
by our residents and Town Council.
Every property in Danville is in the LLAD, which consists of four separate benefit zones:
• Zones A and B pay for roadside landscape maintenance (properties are located in
either A or B)
• Zone C pays for street lighting (properties are included in Zone C if they specially
benefit from street lighting)
• Zone D pays for fifty percent of park and community facilities maintenance (all
properties in Town are in Zone D)
The passage of Proposition 218 in 1996 created new procedural and substantive
requirements for all LLADs in the state, the most significant being that any existing LLAD
assessments and any future increases require approval by the majority of property
owners participating in a mail out ballot process.
In 1997, property owners in Town ratified the assessments existing at that time with more
than 87% support. In 2003, property owners approved an increase in assessments to the
current levels. The rates did not include any annual CPI or escalator, and the Town has
not proposed any additional increases in assessments during the past 20 years.
Current rates for a single-family residence are:
• Zone A $40.20
• Zone B $179.50
• Zone C $58.50
• Zone D $67.80
LLAD 1983-1 2 August 15, 2023
Most commonly, single family owners will fall either within Zones A, C and D with a
total annual assessment of $166.50, or Zones B, C and D with a total annual assessment
of $305.80. Multi-family and non-residential properties are assessed based upon a
formula that determines the “equivalent dwelling units” or EDUs represented by that use
in comparison to single-family residential.
DISCUSSION
While LLAD revenues have not increased in 20 years, expenses have. Following is a
summary of how LLAD revenues and expenditures have changed since the last rate
adjustment in 2003. Audited year-end revenues and expenditures are available for fiscal
years 2003/04 through 2021/22. Budgeted revenues and expenditures are shown for
fiscal year 2023/24.
Revenues
Actual Actual Budget Zone 2003/04 2021/22 % Increase 2023/24 % Increase
A $582,873 $604,323 3.68% $583,858 0.17%
B $728,280 $745,059 2.30% $746,968 2.57%
C $676,696 $683,606 1.02% $664,183 -1.85%
D $1,028,419 $1,162,670 13.05% $1,134,741 10.34% $3,016,268 $3,195,658 5.95% $3,129,750 3.76%
Operating Expenditures (Net of Capital) Actual Actual Budget Zone 2003/04 2021/22 % Increase 2023/24 % Increase
A $582,972 $891,790 52.97% $1,123,688 92.75%
B $613,789 $956,887 55.90% $1,084,257 76.65%
C $593,997 $643,932 8.41% $795,031 33.84%
D $936,192 $1,718,883 83.60% $1,863,138 99.01% $2,726,950 $4,211,492 54.44% $4,866,114 78.45%
As noted previously, Zone D costs reflect the 50/50 cost split between the LLAD and the
Town General Fund. Total Zone D (Park and Facilities Maintenance) costs are double the
cost shown.
Two additional points to make contextually are that: 1) the LLAD expenditures reflected
above do not include capital expenditures that the Town makes to support the LLAD –
i.e., these are operating expenses only; and, 2) between August 2003 and August 2022,
inflation in the San Francisco Bay Area Region as reflected by the Consumer Price Index
(CPI) for the region increased by 67.55%. Therefore, increases in LLAD operating
expenses through fiscal year 2021/22 fall well within the overall CPI for the Bay Area.
LLAD 1983-1 3 August 15, 2023
Had LLAD assessments been structured to adjust for CPI, by 2021/22 the rates that were
originally set in 2003/04 would have adjusted as illustrated below to cover the operating
portion of the LLAD costs net of any capital contribution. Further adjustment based upon
budgeted 2023/24 expenses are reflected in the last two columns.
Adjusted Rates Zone 2003/04 2021/22 % Increase 2023/24 % Increase
A $40.20 $61.49 52.97% $77.49 92.75%
B $179.50 $279.86 55.91% $317.09 76.65%
C $58.50 $63.42 8.41% $78.30 33.84%
D $67.80 $124.48 83.60% $134.93 99.01%
Moving Forward
During the recent study sessions to review the Town’s 2023/24 Operating Budget, the
Town Council requested a study session discussion of the LLAD budget, a review of both
substantive and procedural issues that would arise should the Town wish to propose an
increase in the assessment rates and other potential options available to assist in funding
some or all of these maintenance functions.
Town staff has met with the Town’s long time LLAD District Engineers, Francisco and
Associates, who have prepared the attached memorandum to address these topics.
RECOMMENDATION
Provide direction to Town staff on any additional information regarding the LLAD and
maintenance funding.
Prepared by:
David Casteel
Maintenance Services Director
Robert B. Ewing
City Attorney
Attachment: Francisco and Associates Memo
Assessment Rate Comparison
Current Assessment Rates Proposed Assessment Options
Scenario Number of
Properties
Zone A Zone B Zone C Zone D Total
Assessment
Option 1
- +$3.4M
Revenue
Option 2
- +$2.1M
Revenue
Option 3
- +$1.4M
Revenue
1 3,968 $40.20 $0 $0 $67.80 $108.00 $302-
$352
$241-
$280
$211-
$244
2 960 $0 $179.50 $0 $67.80 $247.30 $367-
$418
$294-
$332
$257-
$290
3 8,087 $40.20 $0 $58.50 $67.80 $166.50 $348-
$398
$278-
$317
$243-
$276
4 2,857 $0 $179.50 $58.50 $67.80 $305.80 $413-
$464
$331-
$369
$289-
$322
Assessment Rate Options Breakdown
Option 1 Option 2 Option 3
Zone A (landscaping) $131 $105 $92
Zone B (landscaping) $196 $157 $138
Zone C1 (arterial street lighting) $16 $13 $12
Zone C2 (local street lighting) $46 $37 $32
Zone D1 (community parks) $154 $123 $108
Zone D2 (neighborhood parks) $50 $39 $33