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HomeMy WebLinkAboutEngineer's Report - Petunia II/Shepherd Lane - L&L District FormationCITY OF PALM DESERT ENGINEER'S REPORT PETUNIA II / SHEPHERD LANE LANDSCAPING AND LIGHTING DISTRICT FORMATION Fiscal Year 2004/2005 Intent Meeting: Public Hearing: May 13, 2004 July 8, 2004 ki MuniFinancial Corporate Office Rol Offices 27368 Via Industria Suite 110 Temecula, CA 92590 Tel: (909) 587-3500 Tel: (800) 755-MUNI (6864) Fax: (909) 587-3510 Antelope Valley, CA Phoenix, AZ Los Angeles, CA San Diego, CA Oakland, CA Sacramento, CA Orange County, CA Seattle, WA www.muni.com ENGINEER'S REPORT AFFIDAVIT Formation of and Establishment of Annual Assessments for the: Petunia II/Shepherd Lane Landscaping and Lighting District City of Palm Desert Riverside County, State of California This Report identifies all the parcels within the District and all relevant zones therein, as they existed at the time of the passage of the Resolution of Intention. Reference is hereby made to the Riverside County Assessor's maps for a detailed description of the lines and dimensions of parcels within the District. The undersigned respectfully submits the enclosed Report as directed by the City Council. Dated this day of , 2004. MuniFinancial Assessment Engineer On Behalf of the City of Palm Desert By. Brian Jewett, Principal Consultant Financial Consulting Services By. Richard Kopecky R. C E.# 16742 TABLE OF CONTENTS I. OVERVIEW 1 A. INTRODUCTION 1 B. GENERAL DESCRIPTION OF THE DISTRICT 2 II. PLANS AND SPECIFICATIONS 3 A. DESCRIPTION OF THE DISTRICT 3 B. DISTRICT IMPROVEMENTS AND SERVICES 3 GENERAL PROVISIONS OF THE LAW 3 LOCATION AND EXTENT OF IMPROVEMENTS 4 III. METHOD OF APPORTIONMENT 6 A. IMPROVEMENT BENEFIT FINDINGS 6 GENERAL BENEFITS 6 SPECIAL BENEFITS 7 B. DESCRIPTION OF THE METHOD OF APPORTIONMENT8 EQUIVALENT BENEFIT UNITS: 9 EBU APPLICATION BY LAND USE: 9 C. ASSESSMENT RANGE FORMULA 12 IV. DISTRICT BUDGET 14 A. CALCULATION OF THE MAXIMUM ASSESSMENT 14 B. DISTRICT BUDGET FOR FISCAL YEAR 2004/2005 15 APPENDIX A - DISTRICT ASSESSMENT DIAGRAM 16 APPENDIX B - 2004/2005 PROPOSED ASSESSMENT ROLL 19 Engineer's Report Fiscal Year 2004/2003 Petunia II/Shepherd Lane Landscaping and Lighting District I. OVE RVIE W A. Introduction The City of Palm Desert ("City") proposes to form the Petunia II/Shepherd Lane Landscaping and Lighting District ("District") for Fiscal Year 2004/2005. The City Council on behalf of the City proposes to levy and collect special assessments on the County tax rolls to provide funding for the costs and expenses required for maintenance of the landscaping and lighting improvements associated with the District. Upon successful formation of the District and approval of the assessments, the territory within the District will be concurrently annexed into the existing Palm Desert Consolidated Landscaping and Lighting District ("Consolidated District") as the Petunia II sub -zone of Zone 16 (Shepherd Lane). The District will be formed, annexed into the Consolidated District, and levied pursuant to the Landscape and Lighting Act cf 1972, Part 2 gDizision 15 cf the California Stre?ts and Highway Cale (the Act), and in compliance with the substantive and procedural requirements of the California Constitution Article XIIID. This Engineer's Report ("Report") describes the District and assessments to be levied against properties within the District commencing with Fiscal Year 2004/2005. The assessments described herein are based on the estimated cost to maintain the improvements that will provide a direct and special benefit to properties within the District. Improvements to be maintained and funded through annual assessments shall be constructed and installed in connection with the development of these properties. The annual costs and assessments described herein include all estimated direct expenditures, incidental expenses, deficits, surpluses, revenues, and reserves associated with the maintenance and servicing of the improvements. The word "parcel," for the purposes of this Report, refers to an individual property assigned its own Assessment Number by the County of Riverside Assessor's Office. The County of Riverside Auditor/Controller uses Assessment Numbers and specific Fund Numbers to identify properties assessed on the tax roll for special district benefit assessments. At a noticed Public Hearing, the City Council will consider all public comments and written protests presented. Upon conclusion of the Public Hearing, the City Council will tabulate property owner protest ballots received to determine whether majority protest exists, and by resolution confirm the results of the protest ballot tabulation. Proceedings for the formation of the assessment district shall be abandoned if majority protest exists. If tabulation of the property owner protest ballots indicates approval of the assessments and the assessment range formula presented, by resolution the City Council will approve the Engineer's Report as submitted or amended (amendments may not increase the assessments approved by the property owners). Following approval of the Report, the City Council will by resolution, order MuniFimncial Page 1 Engineer's Report Fiscal Year 2004/2005 Petunia II/Shepherd Lane Landscaping and Lighting District the formation of the District, the annexation of the territory into the Consolidated District, and confirm the levy and collection of assessments pursuant to the Act. In such case, the assessments as approved may be submitted to the Riverside County Auditor/Controller to be included on the property tax roll for each parcel for Fiscal Year 2004/2005, or reviewed and confirmed at the annual public hearing for the Consolidated District along with all other assessments within the Consolidated District. B. General Description of the District The District consists of all lots, parcels and properties within the residential subdivision known as Petunia II within the development area known as Shepherd Lane located along Shepherd Lane, west of Portola Avenue, south of the Gerald Ford Drive, north of Frank Sinatra Dive, and generally west of the Monterey Avenue. The improvements and services that provide a special benefit to properties within the District generally include, but are not limited to: • Parkway landscaping on Shepherd Lane adjacent to the residential development installed as part of the development of properties therein; • Perimeter landscaping- for the Shepherd- Lane residential developments. Tract 10275- is orre- of several residential subdivisions within the area known as Shepherd Lane, that includes parkway/perimeter landscaping on the west side of Portola Avenue between Frank Sinatra Dive and Gerald Ford Drive, as well as landscaping on the north side of Frank Sinatra Drive and the south side of Gerald Ford Drive on either side of Shepherd Lane. These improvements benefit all property development within the Shepherd Lane area and each residential subdivision is assessed a proportional share of the costs associated with these landscaped areas; • Any entryways, open space areas or other landscaped areas associated with the development of properties within the District that will be maintained by the Distnct; • Street lights within and adjacent to the residential subdivision. The estimated annual cost to provide and maintain the improvements associated with the District have been allocated to each property in proportion to special benefits received. The Method of Apportionment described in this Report utilizes commonly accepted assessment engineering practices and has been established pursuant to the 1972 Act and the provisions of Article XIIID of the California Constitution (Proposition 218). MuniFimndal Page 2 Engineer's Report Fiscal Year 2004/2005 Petunia II/Shepherd Lane Landscaping and Lighting District II. PLANS AND SPECIFICATIONS A. Description of the District The District consists of all lots and parcels within the residential subdivision known as Petunia II (Tract 30275) located on the east side of Shepherd Lane at the intersection of "A" Street. This tract is generally located west of Portola Avenue, south of the Gerald Ford Drive, north of Frank Sinatra Dive and generally east of the Monterey Avenue. Refer to the Assessment Diagram for details of the District boundary. The proposed District includes all parcels of land that have been approved for residential development within Tract 30275. • Tract No. 30275 ("A" Street) — Sixteen (16) single-family residential parcels (lots 1-16) identified on the County Assessor's Map as APN Book 653, Page 37, (Assessor's Parcel Number 653-780-017 through 032). This tract includes two landscape easements identified as the parkway landscaping on the east side of Shepherd Lane adjacent to the tract north and south of "A" Street and parkway landscaping easement on the west side of. Portola-Avenue adjacent to the tract. The parcels to be assessed_ receive= special- benefit- from- the- installation- and - maintenance of streerlightin anIga a landscapinw adjacent to the development_ and perimeter lands capitrg as's-6crated-with- the- devvelop/mnt-of all- properties within the Shepherd Lane area. The improvements to be funded through District assessments have either been installed as a condition of the development of the original undeveloped properties within the District or have been installed as part of the overall development of properties within the area known as Shepherd Lane. The District is being formed to ensure and preserve the on going maintenance and operation of these improvements and it has been determined that each parcel within the District receives similar and proportional benefit from the collective improvements installed as part of the property development. The specific location, description and benefits of the improvements are discussed in the following sections. B. District Improvements and Services GENERAL PROVISIONS OF THE LAW As generally defined by the 1972 Act and applicable to this District, improvements and the associated assessments may include one or any combination of the following: 1) The installation or planting of landscaping; 2) The installation or construction of statuary, fountains, and other ornamental structures and facilities; MuniFinar al Page 3 Engineer's Report Fiscal Year 2004/2005 Petunia II/Shepherd Lane Landscaping and Lighting District 3) The installation or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance or servicing thereof; 4) The maintenance or servicing, or both, of any of the foregoing including the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including, but not limited to: a) Repair, removal, or replacement of all or any part of any improvements; b) Grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities; c) Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; d) The removal of trimmings, rubbish, debris, and other solid waste; e) The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti; f) Electric current or energy, gas, or other agent for the lighting or operation of any other improvements; and, g) Water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements. 5) Incidental expenses associated with the improvements including, but not limited to: a) The cost of preparation of the report, including plans, specifications, estimates, diagram, and assessment; b) The costs of printing, advertising, and the publishing, posting and mailing of notices; c) Compensation payable to the County for collection of assessments; d) Compensation of any engineer or attorney employed to render services; e) Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements; and, f) Costs associated with any elections held for the approval of a new or increased assessment. LOCATION AND EXTENT OF IMPROVEMENTS The purpose of the District is to ensure the ongoing maintenance, operation and servicing of local landscape and street lighting improvements installed as a result of MuniFinamial Page 4 Engineer's Report Fiscal Year 2004/2005 Petunia II/Shepherd Lane Landscaping and Lighting District property development in the Shepherd Lane area. These improvements may include, but are not limited to all streetlight facilities as well as landscaping material and facilities associated with properties in the District including ground cover, shrubs, trees and plants; irrigation and drainage systems; ornamental lighting structures, masonry walls or other fencing, entryway monument, and associated appurtenant facilities located within the: • Parkway landscaping along Shepherd Lane adjacent to the residential subdivision. Specifically for this District, this landscaped areas includes the parkway area on the east side of Shepherd Lane which extends the length of Tract 30275; • Perimeter/parkway landscaping on the west side of Portola Avenue between Frank Sinatra Dive and Gerald Ford Drive, as well as landscaping on the north side of Frank Sinatra Drive and the south side of Gerald Ford Drive on either side of Shepherd Lane. Although these perimeter/parkway-landscaping areas may not have been installed directly as a condition of this residential subdivision, this landscaping is an integral part of the overall development of properties within the Shepherd Lane area and directly benefits all property development within the area. Therefore, each residential subdivision is assessed a proportional share of the costs associated with these landscaped areas; • Streetlights within the residential subdivision and/or adjacent to the subdivision on "A" Street, Shepherd Lane and the west side of Portola Avenue installed as part of the residential subdivision; and, • Any extension or expansion of the proposed landscaped areas within or adjacent to the subdivision that may be installed as part of the development of properties within the District and will be maintained by the District. These improvements may include, but are not limited to open space areas, monuments or other landscaped easements. MuniFinan ial Page 5 Engineer's Report Fiscal Year 2004/2005 Petunia II/Shepherd Lane Landscaping and Lighting District III. METHOD OF APPORTIONMENT Pursuant to the 1972 Act the costs (assessments) of the District are apportioned by a formula or method that fairly distributes the net amount to be assessed among all parcels in proportion to benefits received from the improvements. Furthermore, the provisions of Article XIIID of the California Constitution (Proposition 218) require the agency to separate the general benefit from special benefit, whereas only special benefits may be assessed. A. Improvement Benefit Findings The annual assessments outlined in the budget section of this Report are proposed to cover the estimated costs to provide the necessary services, operation, administration, and maintenance required each year to maintain street lighting facilities associated with the District and keep the landscaping improvements in a healthy, vigorous, and satisfactory condition. It has been determined that each assessable parcel within the District receives similar and proportional special benefits from the improvements. The fact that improvements are part of the specific property development plans and requirements for development of properties within the- District, and each parcel's close and relatively similar proximity to the improvements makes each parcel's special benefit from the improvements similar and proportionate. All the lots and parcels that receive special benefit from the improvements are included within the District. GENERAL BENEFITS The improvements to be provided and maintained by the District are a direct result of property development within the District and the Shepherd Lane area and these improvements would otherwise not be required or necessary. Developers typically install local improvements or develop in areas where landscape improvements exist to enhance the marketability and value of properties within their development and/or as conditions of development. In any case, local landscape and lighting improvements associated with the development clearly benefit the properties being developed. If new improvements are installed as part of the development, they are installed either to enhance the property being developed or as a condition of development and not for the benefit of surrounding properties outside the District. Although local development improvements (by virtue of their location) may be visible to surrounding properties, any benefit to surrounding properties is incidental and cannot be considered a direct and special benefit. Furthermore, most developments within the City typically have various landscaping and lighting improvements specifically associated with their development and these improvements are funded by properties within those developments. Therefore, it has been determined that the improvements associated with this District and the ongoing operation and maintenance of those improvements provide no identifiable MuniFinandal Page 6 Engineer's Report Fiscal Year 2004/2005 Petunia II/Shepherd Lane Landscaping and Lighting District or measurable general benefit to properties outside the Shepherd Lane area or to the public at large. SPECIAL BENEFITS All the improvements funded through the District provide a special aesthetic appeal to each property and enhance the quality of life for property owners within the District as well as the marketability of those properties. All landscaping and lighting improvements associated with the District are part of the overall development plan for properties within the District and the Shepherd Lane area and specifically installed for the benefit and development of those properties. The special benefits associated with parkway, perimeter, entryway, and other property -specific landscaped areas and associated amenities are specifically: 1. Enhanced desirability of properties through association with the improvements. 2. Improved aesthetic appeal of properties within the District providing a positive representation of the development and properties within the development. 3. Enhanced adaptation of the urban environment within the natural environment from adequate green space and landscaping. 4. Environmental enhancement through improved erosion resistance, dust and debris control and reduced noise and air pollution. 5. Increased sense of pride in ownership of property within the District resulting from well -maintained improvements associated with the properties. 6. Reduced vandalism and criminal activity resulting from well -maintained surroundings and amenities. 7. The special enhancements of the perceived value of property that results from the above benefits. The special benefits of street lighting are the convenience, safety, and security of property, improvements, and goods. Specifically: 1. Enhanced deterrence of crime and the aid to police protection. 2. Increased nighttime safety on streets through enhanced visibility. 3. Improved sense of security and safety for pedestrians, motorists and property owners. 4. Improved ingress and egress to property. 5. Reduced vandalism, other criminal acts and damage to improvements or property. 6. Reduced personal property loss. MuniFinariaal par? Engineer's Report Fiscal Year 2004/2005 Petunia II/Shepherd Lane Landscaping and Lighting District 7. The special enhancements of the perceived value of property that results from the above benefits B. Description of the Method of Apportionment The assessments outlined in this section represent the proportionate special benefit to each property within the District and the basis of calculating each parcel's proportionate share of the annual costs associated with the District improvements. The costs associated with the maintenance and operation of all District improvements shall be collected through annual assessments from each parcel receiving special benefit. The funds collected shall be dispersed and used for only the services and operation provided to the District. The method of apportionment for the District calculates the receipt of special benefit from the respective improvements based on the actual or proposed land use of the parcels within the District. The special benefit received by each lot or parcel is equated to the overall land use of the parcel based on the parcel's actual land use or proposed planned development, and is reliant upon the special benefit received from the improvements planned within the District. To identify and determine the special benefit to be received by each parcel and their proportionate share of the improvements it is necessary to consider the entire scope of the planned improvements within the Shepherd Lane area as well as individual property development within the District. Upon review of the proposed improvements it has been determined that each parcel within the proposed District benefits from the landscaping and lighting improvements installed as a condition of property development as well as perimeter landscaping associated with similar developments in the Shepherd Lane area. Based on these improvements and the planned property development within the proposed District, a maximum assessment can be established. All costs associated with the improvements shall be fairly distributed among the parcels based upon the special benefit received by each parcel. Additionally, in compliance with Article XIIID, Section 4, of the State Constitution each parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred to that parcel. The benefit formula used to determine the assessment obligation is therefore based upon both the improvements that benefit the parcels within the District as well as the proposed land use of each property as compared to other parcels that benefit from those specific improvements. MuniFinandal Page 8 Engineer's Report Fiscal Year 2004/2005 Petunia II/Shepherd Lane Landscaping and Lighting District EQUIVALENT BENEFIT UNITS: The Equivalent Benefit Unit (EBU) method of apportioning benefit is typically seen as the most appropriate and equitable assessment methodology for districts formed under the 1972 Act, as the benefit to each parcel from the improvements are apportioned as a function of land use type and development or development potential. To assess benefits equitably, it is necessary to relate the different type of properties within the District to the improvements and to each other. The Equivalent Benefit Unit method of assessment apportionment urili7Ps the single-family home site as the basic unit of assessment. A single-family home site equals one Equivalent Benefit Unit (EBU). Every other land use within the District is converted to EBU's based on an assessment formula that equates the property's specific development status, type of development (land use), and size or development plans for the property, as compared to a single-family home site. Although this particular District (Petunia II subdivision) will be comprised of only subdivided residential lots, it is anticipated that this subdivision will eventually be one of several subdivisions and developments that will be included in Zone 16 (Shepherd Lane) of the Palm Desert Consolidated District. Therefore, the following provides an overview of the EBU's applied to various other land use classifications within the Consolidated District. EBU APPLICATION BY LAND USE: Single Family Residential — This land use is defined as a fully subdivided residential home site with or without a structure. This land use is assessed 1.00 EBU per lot or parcel. This is the base value that all other land use types are compared and weighted against (i.e. Equivalent Benefit Unit). Multifamily Residential — This land use is defined as a fully subdivided residential parcel that has more than one residential unit developed on the property. Engineering studies have consistently shown that apartment and other multiple - family dwelling units generate lower traffic volumes, water consumption, and typically impact public infrastructure between 60 to 80 percent as much as a single- family residence largely due to lower occupancy of apartment dwelling units versus single family residential units. Therefore, assessments for the multiple residential units shall be prorated with a value of 0.70 EBU per unit. Condominiums — This land use includes residential developments designated as condominiums by the City and may include one to four residential units per parcel. Engineering studies have shown that on average, condominiums generate lower traffic volumes, water consumption, and typically impact public infrastructure less than a detached single-family residence, but more than apartments or other multifamily dwelling units. Therefore, assessments for condominiums shall be prorated with a value of 0.80 EBU per unit. MuniFtmthal Page 9 Engineer's Report Fiscal Year 2004/2005 Petunia II/Shepherd Lane Landscaping and Lighting District Approved -Residential Development — This land use is defined as any property not fully subdivided, but for which a Final Tract Map has been approved with a specific number of residential lots to be developed on the parcel. This land use type is assessed at 1.00 EBU per planned residential lot. (If the parcel is actually subdivided at the time annual assessments are submitted to the County for Collection, the resulting parcels shall be assessed based on their resulting development status change). Proposed -Residential Development — This land use is defined as any property not fully subdivided and for which a Tentative Tract Map has been submitted or approved with a specific number of proposed residential lots, but a Final Tract Map has not been approved. This land use type is assessed at 0.75 EBU per proposed residential lot. (If the parcel is actually subdivided or a Final Tract Map is approved prior to the annual assessments being submitted to the County for Collection, the resulting land use change or new parcels shall be assessed based on their resulting development status change). Vacant Undeveloped Property — This land use is defined as any property identified as vacant land that is currently undeveloped with no specific development plans,- but-. may-.. be. developed.or.. subdivided-:- in the- future (No tract map or development pian_bas_be_en s_uhmitted_and/or approved).. This land use is assessed at ..,0� 0T LBU.pi-parcel:_ Developed Non -Residential — This land use is defined as property that is developed, but not as residential property as defined by the previous land use designations. The average residential density within the City is approximately six (6) residential units per acre. Therefore, the proportionate benefit assigned to Developed Non -Residential properties shall be 6.00 EBU per gross acre. Parcels designated as Developed Non -Residential are assigned a minimum of 1.00 EBU. Exempt Parcels — This land use identifies properties that are not assessed within the District. This land use classification may include but is not limited to lots or parcels that will not be developed such as sliver parcels, dedicated easements, open space areas, dedicated landscaped areas or common areas. Similarly, properties not designated by a County Assessor's Parcel Number (APN) such as streets, utility easements or rights -of -way receive no special benefit and are considered Exempt. These Exempt properties are not assessed for District improvements. If the County designates an Exempt property by an APN, that parcel shall be assigned 0.00 EBU. Properties that are identified as non-taxable by the County Assessor's Office such as government owned or utility owned properties are not exempt from District assessments unless: the property has limited or restricted development potential; the property clearly receives no benefit from the improvements; or the property provides additional or substantially similar improvements (such is the case with public schools, parks and open space areas). MuniFinarxwl Page 10 Engineer's Report Fiscal Year 2004/2005 Petunia II/Shepherd Lane Landscaping and Lighting District The following table provides a listing by land use type, the Equivalent Benefit Unit factor applied to that land use type and the multiplying factor used to calculate each parcel's individual EBU as outlined in the preceding description. Land Use Designations and Equivalent Benefit Units Equivalent Benefit Unit Property Type Multiplier Single Family Residential 1.000 Unit/Lot/Parcel Multifamily Residential 0.700 Unit Condominiums 0.800 Unit Approved -Residential Development 1.000 Unit/Lots Proposed -Residential Development 0.750 Unit/Lots Vacant Undeveloped Property 1.000 Parcel Developed Non -Residential 6.000 Acreage Exempt 0.000 Parcel The- benefit formula applied to various parcels is based on the preceding_ Equivalent Benefit Unit (EBU) discussion and table. Each parcel's EBU correlates the parcel's - special benefit received as compared to all other parcels benefitingfrom the improvements. The following formula is used to calculate each parcel's EBU (proportional benefit). Parcel Type EBU x Acres/Lots/Units = Parcel EBU The total number of Equivalent Benefit Units (EBU's) is the sum of all individual EBU's applied to parcels that receive a special benefit the improvement. An assessment amount per EBU (Rate) for the District improvements is established annually by taking the total cost of the improvement and dividing that amount by the total number of EBU's of all benefiting parcels. This Rate is then applied back to each parcel's individual EBU to determine the parcel's proportionate benefit and assessment obligation. Total Balance to Levy / Total EBU = Levy per EBU Levy per EBU x Parcel EBU = Parcel Levy Amount MuniFinxnaal Page 11 Engineer's Report Fiscal Year 2004/2005 Petunia II/Shepherd Lane Landscaping and Lighting District C. Assessment Range Formula Any new or increase in assessments require certain noticing and meeting requirements by law. Prior to the passage of Proposition 218, legislative changes in the Brown Act defined the definition of "new or increased assessment" to exclude certain conditions. These conditions included "any assessment that does not exceed an assessment formula or range of assessments previously adopted by the agency or approved by the voters in the area where the assessment is imposed." This definition and conditions were later confirmed through SB919 (Proposition 218 implementing legislation). The purpose of establishing an assessment range formula is to provide for reasonable increases and inflationary adjustments to annual assessments without requiring costly noticing and mailing procedures, which could add to the District costs and assessments. As part of the District formation, balloting of property owners is required, pursuant to Proposition 218. The ballots presented to the property owners in connection with this Report includes an Assessment Rate to be approved, as well as the approval of an assessment range formula. The assessment range formula shall be applied to all future assessments within the District. Generally, if the proposed annual assessment (levy per unit or rate) for the current fiscal year is less than or equal to the "Maximum Assessment" (or "Adjusted Maximum Assessment"), then the proposed annual assessment is not considered an increased assessment. The Maximum Assessment is equal to the initial Assessment approved by property owners adjusted annually by the following criteria: 1. Beginning in the second fiscal year, (Fiscal Year 2005/2006) and each fiscal year thereafter, the Maximum Assessment will be recalculated annually; and, 2. The new adjusted Maximum Assessment for the year represents the prior year's Maximum Assessment adjusted by three percent (3.0%). The Maximum Assessment is adjusted annually and is calculated independent of the District's annual budget and proposed annual assessment. Any proposed annual assessment (rate per levy unit) less than or equal to this Maximum Assessment is not considered an increased assessment, even if the proposed assessment is significantly greater than the assessment applied in the prior fiscal year. The Maximum Assessment will be recalculated and adjusted annually. However, the City Council may reduce or freeze the Maximum Assessment at any time by amending the Engineer's Annual Report. Although the Maximum Assessment will normally increase each year, the actual District assessments may fluctuate or remain virtually unchanged. The Maximum Assessment adjustment is designed to establish a reasonable limit on District assessments. The Maximum Assessment calculated each year does not require or facilitate an increase to the annual assessment and neither does it restrict assessments to the adjustment maximum amount. If the budget and assessments for the fiscal MuniFimrxial Page 12 Engineer's Report Fiscal Year 2004/2005 Petunia II/Shepherd Lane Landscaping and Lighting District year does not require an increase, or the increase is less than the adjusted Maximum Assessment, then the required budget and assessment may be applied without additional property owner balloting. If the budget and assessments calculated requires an increase greater than the adjusted Maximum Assessment then the assessment is considered an increased assessment. To impose an increased assessment the City Council must comply with the provisions of Proposition 218 (Article XIIID Section 4c of the California Constitution), which requires a public hearing and certain protest procedures including mailed notice of the public hearing and property owner protest balloting. Property owners through the balloting process must approve the proposed assessment increase. If the new proposed assessment is approved, then a new Maximum Assessment is established for the District. If the proposed assessment is not approved, the City Council may not levy an assessment greater than the adjusted Maximum Assessment previously established for the District. MuniFinanQal Page 13 Engineer's Report Fiscal Year 2004/2005 Petunia II/Shepherd Lane Landscaping and Lighting District IV. DISTRICT BUDGET A. Calculation of the Maximum Assessment The Maximum Assessment Rate per EBU presented to the property owners for approval is based on the estimated expenses and benefit units planned for the District (Petunia II) at build out. The following budget reflects these assumptions: ZONE 16 PETUNIA II Total General Special Budget Benefit Benefit DIRECT COSTS Maintenance Costs $2,534 380 $2,154 Landscape Utilities 792 119 673 Landscape Extras (Repairs/Materials/Equipment) 770 116 655 Tree Pruning 450 68 383 Street Lighting 150 23 128 Special District Services 0 - 0 Annual Direct Costs (Subtotal) $4,696 704 $3,992 Renovation/Capital.Improvement Expenditures 0 - 0 Total Direct Costs $4,696 704 $3,992 ADMINISTRATION COSTS District Administration 948 142 806 County Administration Fee 25 4 21 County Per Parcel Fee 3 0 3 Administration Costs (Subtotal) $976 146 8830 LEVY BREAKDOWN Total Direct and Admin. Costs 5,672 851 4,821 Reserve Collection/ (Transfers) 567 - 567 Other Revenues/General Fund Contribution 0 0 Capital Improvement Project Collection/ (Transfers) 0 - 0 Balance to Levy $6,239 851 $5,388 DISTRICT STATISTICS Total Parcels 16 Total Parcels Levied 16 Total Equivalent Dwelling Units 16.00 Levy per EDU $336.78 RESERVE INFORMATION Beginning Reserve Balance 0 Reserve Account Activity 567 Anticipated Reserve Balance 567 ASSESSMENT INFORMATION Maximum Assessment Rate FY 2004/05 CPI Applied : 0.00% $336.78 MuniFirarrial Page 14 Engineer's Report Fiscal Year 2004/2005 Petunia II/Shepherd Lane Landscaping and Lighting District B. District Budget For Fiscal Year 2004/2005 Upon the successful formation of the proposed Petunia II/Shepherd Lane Landscaping and T ighting District, the District and parcels therein will be concurrently annexed into the Palm Desert Consolidated District as part of Zone 16 (Shepherd Lane) for Fiscal Year 2004/2005. The actual budget and assessment rate to be applied for Fiscal Year 2004/2005 (first levy of assessments) will be reviewed "and adopted by the City Council as part of the annual levy process for the Consolidated District for Fiscal Year 2004/2005. Although it is anticipated that the proposed expenses (budget) and proposed assessment rate per Equivalent Benefit Unit (EBU) outlined in the preceding table (Calculation of the Maximum Assessment) will be applied for Fiscal Year 2004/2005, the assessment rate approved and adopted by the City Council may be less than the maximum rate outlined in this report. MuniFrinrxial Page 15 Engineer's Report Fiscal Year 2004/2005 Petunia II/Shepherd Lane Landscaping and Lighting District APPENDIX A - DISTRICT ASSESSMENT DIAGRAM The District consists of all lots and parcels within the Petunia II subdivision Tract 30275 located along Shepherd Lane, west of Portola Avenue, south of the Gerald Ford Drive, north of Frank Sinatra Dive, and generally east of the Monterey Avenue. The tract map and Assessor's Parcel Map shown on the following pages identify the parcels within the Petunia II/Shepherd Lane Landscaping and Lighting District, as they existed on the County Assessor's Roll when this Report was prepared and the Resolution of Intention was adopted. The District is inclusive of Assessor's Parcel Map — Book 653, Page 37, (Assessor's Parcel Number 653-780-017 through 032). The parcels identified on the Assessor's Parcel Map and the Tract Map contained herein define the boundaries and constitute the Assessment Diagram for the District and by reference includes all subsequent parcels and Assessor's Parcel Maps and parcel numbers related thereto. MuniFinzrral Page 16 on a un cn zQ�AM_ . W wZO Wo� xal cJ W W wx 0 0 � I 1-9 l cu-'IS'1£-£40 - £0UZ-ZO^_Z' b•�'ap!s:Ba!y 941 ut t!1 T9 69Z0£ # 211 94 !; f) SLZO£#211 LHOO£#211 LH00£ # 211 19,9 VINQ--QNO1-• QTYN33 �3 Engineer's Report Fiscal Year 2004/2005 Petunia II/Shepherd Lane Landscaping and Lighting District APPENDIX B - 2004/2005 PROPOSED ASSESSMENT ROLL Parcel identification for each lot or parcel within the District, shall be the parcel as shown on the Riverside County Secured Roll for the year in which this Report is prepared and reflective of the Assessor's Parcel Map(s). As of the resolution of Intention, the Petunia II/Shepherd Lane Landscaping and Lighting District is inclusive of Assessor's Parcel Numbers (APN's) identified on the Assessor's Parcel Maps — Book 653, Page 37, (Assessor's Parcel Number 653-780-017 through 032). A listing of parcels assessed within this District identifying the proposed Maximum Assessment Amount for the first fiscal year is included in the following listing. Proposed APN Parcel Description Assessment 653-780-017 Tract,302,75Lot 1 653-780-018 Tract:30275Lot 2 653-780-019, Tract 3.02_75 Lot.3. 653-780-020 Tract-30275 Lot4 653-780-021 Tract 302 5 Lot 5 653-780-022 Tract30275'Lot 6 653-780-023 Tract 30275 Lot 7 653-780-024 Tract 30275 Lot 8 653-780-025 Tract 30275 Lot 9 653-780-026 Tract 30275 Lot 10 653-780-027 Tract 30275 Lot 11 653-780-028 Tract 30275 Lot 12 653-780-029 Tract 30275 Lot 13 653-780-030 Tract 30275 Lot 14 653-780-031 Tract 30275 Lot 15 653-780-032 Tract 30275 Lot 16 Total Assessment 336.78 336.78 336.78 336.78 336.78 336.78 336.78 336.78 336.78 336.78 336.78 336.78 336.78 336.78 336.78 336.78 $5,388.48 MuniFinar ial Page 19