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HomeMy WebLinkAboutRes 04-41 Consolidated Landscape & Lighting Dist FY 04/05REQUEST: DATE: CONTENTS: CITY OF PALM DESERT DEVELOPMENT SERVICES STAFF REPORT Consideration to Declare the Results of the Property Owner Balloting for Increased Assessments for Certain Zones of the Consolidated Landscape and Lighting District. May 13, 2004 Resolution No. 04-41 Engineers' Report Fiscal Year 2004/2005 Recommendation: Waive further reading and adopt: 1. Resolution No. 04-41 declaring the results of the property owner protest proceeding for certain zones within the Palm Desert Consolidated Landscape and Lighting District. Executive Summary: In November of 2003, the City Council and Redevelopment Agency Board authorized staff to proceed with renovating 18 outdated and inefficient landscaping districts. Twelve of the eighteen districts were identified in need of an increase to their annual levy to cover the maintenance costs after renovation. The City initiated the process to ballot the 12 districts on February 26, 2004. Ballots were sent to all property owners based on the current Riverside County Assessor Role and the required public hearing was scheduled for April 22, 2004 (Postponed to May 13, 2004). The attached resolution enables the City to declare the results of the property owners balloting for an increased assessment. The districts that approve their new annual levy will be included in the City's landscape and lighting district renovation project. Those districts that deny the levy increase will continue pay the existing levy, but will receive a level of service equal to the funds available within their district. Staff recommends that the City Council open the public hearing, take testimony and adopt the attached resolution. Staff Report - Landscape and Lighting District Balloting Page 2 of 3 April 22, 2004, Continued to May 13, 2004 Discussion: The City Council and the Redevelopment Agency Board appropriated $735,259 (including a 15% contingency) to renovate 18 outdated landscape and lighting districts. The renovation proposal includes retrofitting old and inefficient irrigations systems with new drip irrigation and the replacement of turf and lush plant material with new water efficient landscaping. The City Council and Agency Board placed a condition that the funds for the renovation of each district be made available to those districts that approve an increase to their annual levy to cover the new maintenance costs after renovation. The goals of the renovation are threefold: 1. To provide new water efficient landscaping and irrigation system for outdated districts; 2. To reduce the annual maintenance and utility costs; and 3. To develop a self-supporting district with well maintained landscaping that would enhance the City and the neighborhoods. The 12 districts requiring levy increases are outlined in the attached Engineers' Report. The report includes a proposed annual budget for each district that would be implemented for Fiscal Year 2004/05. Table 1-1 below, outlines the district's existing annual levy and the proposed annual levy to cover the new maintenance cost after renovation. Table 1-1 District Units Existing Annual Levy New Annual Levy After Renovation La Paloma 16 $198.14 $368.56 Hovley Collection 38 $123.34 $313.28 Sonata I 16 $137.18 $321.18 Desert Mirage 29 $71.32 $370.45 Palm Gate 37 $69.16 $160.38 Hovley Estates 16 $256.72 $389.42 Hovley West 16 $287.16 $399.18 The Glen 16 $141.28 $276.48 Sandpiper West 16 $352.14 $375.66 Sandpiper Court 16 $352.14 $378.56 Kaufman & Broad 163 $57.24 $117.20 Sonata II 94 $46.00 $121.56 G:\DevServices\Martin Alvarez\Word Files\ConLLD0304\Renovation041SRrenopublichearing.doc Staff Report - Landscape and Lighting District Balloting Page 3of3 April 22, 2004, Continued to May 13, 2004 Resident Meetings: In January of 2004, staff met with residents of the 12 landscape and lighting districts that would require an increase to their annual assessment. Staff presented the landscape renovation proposal, including the goals, renovation costs and the proposed annual levy after renovation. Staff also indicated that in order to qualify for the renovation funds, each district would have to approve a ballot to modify their annual levy. Staff explained that the new levy would pay for the annual maintenance and utility costs of a new water efficient landscaping. The majority of the residents that attended the meetings expressed interest and willingness to participate in this project. Conclusion Upon closing of the public hearing and counting of the ballots, the attached resolution enables the City to declare the results. Those districts that approve their new annual levy will qualify for the renovation of their landscaping district and the levies will be implemented in Fiscal Year 2004/2005. Therefore, Staff recommends that the City Council open the public hearing, take testimony and adopt the attached resolution, Submitted By: Department -ad: Ma Alvarez Homer Croy Senior Management Analyst ACM for Develo-nt Services Approval: Paul S. Gibson Director of Finance/City Treasurer Carlos L. Ortega City Manager /ma G:\DevServices\Martin Alvarez\Word Files\ConLLD03041Renovation041SRrenopublichearing.doc RESOLUTION NO. 04-41 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DECLARING THE RESULTS OF A PROPERTY OWNER PROTEST PROCEEDING FOR CERTAIN ZONES WITHIN THE PALM DESERT CONSOLIDATED LANDSCAPING AND LIGHTING DISTRICT WHEREAS, the City Council of the City of Palm Desert, California, (hereafter referred to as City Council) called and duly held a property owner protest proceeding for certain zones of the Consolidated Landscaping and Lighting District (hereafter referred to as District) pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as Act) and the California Constitution Articles XIIIC and XIIID, for the purpose of presenting to the qualified property owners within certain Zones of the District the increased annual levy of assessments for the costs and expenses of the operation, maintenance, repair and servicing of landscape maintenance easement areas, street lighting and all appurtenant facilities and operations related thereto; and, WHEREAS, the landowners of record within the following Zones of the District as of the close of the Public Hearing held on May 13, 2004 did cast their ballots, weighted by the proportional financial obligation of each ballot, the results of which are illustrated below: ZONE YES NO Zone # 5 Cook and Country Club — Desert Mirage Sub -zone Zone # 6 Hovley Lane — The Glen Sub -zone Zone # 6 Hovley Lane — Hovley Estates Sub -zone Zone # 6 Hovley Lane -- Sonata I Sub -zone Zone # 6 Hovley Lane — Sonata II Sub -zone Zone # 6 Hovley Lane — Hovley Collection Sub - zone Zone # 6 Hovley Lane — La Palom'a I Sub -zone Zone # 6 Hovley Lane — Sandpiper Court Sub -zone Zone # 6 Hovley Lane — Sandpiper West Sub -zone Zone # 6 Hovley Lane — Hovley Court West Sub - zone Zone # 8 — Palm Gate Zone #14 — K & B at Palm Desert NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DOES HEREBY RESOLVE, ORDER AND DETERMINE: Section 1 The above recitals are true and correct. Section 2 The results of the tabulation of the valid property owner protest ballots returned by the property owners within said District, prior to the conclusion of the Public Hearing and property owner protest proceeding held for the District on May 13, 2004, is hereby confirmed and made public record. Section 3 The City Clerk is hereby directed to enter this Resolution on the minutes of the City Council, which shall constitute the official declaration of the result of such property owner protest proceeding. Section 4 This Resolution shall become effective immediately upon its adoption. Section 5 The City Clerk shall certify the adoption of this Resolution. 2 PASSED, APPROVED, AND ADOPTED at a regular meeting of the Palm Desert City Council, held on this day of , 2004, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAINED: ATTEST: Robert A. Spiegel, Mayor City of Palm Desert Rachelle D. Klassen, City Clerk City of Palm Desert, California CITY OF PALM DESERT ENGINEER'S REPORT Consolidated Palm Desert Landscaping And Lighting District Fiscal Year 2004/05 INTENT MEETING: February 26, 2004 PUBLIC HEARING: May 13, 2004 MuniFinancial Corporate Office 27368 Via Industria Suite 110 Temecula, CA 92590 Tel: (909) 587-3500 Tel: (800) 755-MUNI (6864) Fax: (909) 587-3510 Regional Offices 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 Establishment of Annual Assessments for the: Consolidated Palm Desert 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 OVERVIEW 4 A. Introduction 4 B. Compliance with the Current Legislation 5 C. General Description of the District and Services 5 II. SPECIFIC IMPROVEMENTS AND SPECIAL BENEFIT ZONES 7 III. METHOD OF APPORTIONMENT 10 A. General 10 B. Benefit Analysis 10 C. Assessment Methodology 13 D. Assessment Range Formula 13 IV. DISTRICT BUDGETS 15 A. Description of Budget Items 15 B. District Budgets 18 APPENDIX A — DISTRICT BOUNDARY MAPS 30 APPENDIX B — 2004/05 ASSESSMENT RATES FOR THE ZONES TO BE BALLOTED 31 Consolidated Palm Desert Landscaping and Lighting Maintenance Assessment District Engineer's Report, Fiscal Year 2004/05 I. Overview A. Introduction The City of Palm Desert (hereafter referred to as "City") annually levies and collects special assessments in order to provide and maintain the improvements within the Consolidated Palm Desert Landscaping and Lighting Maintenance Assessment District (hereafter referred to as "District"). The District was formed in 1993, through the consolidation of several individual landscaping and lighting maintenance districts within the City. The original districts and all subsequent annexations are identified as separate benefit zones and/or Sub -zones (hereafter referred to as `Zones") within the Consolidated District. The District was formed and is annually levied pursuant to the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Cal forma Streets and Highways Code (hereafter referred to as the "1972 Act"). This Engineer's Report (hereafter referred to as the "Report") describes the District and the proposed changes to the assessments in twelve (12) zones for Fiscal year 2004/05. The proposed increases in assessments for these zones are based on the City's estimated cost to maintain the improvements that provide a direct and special benefit to properties within these zones. The various improvements within the District and the costs of those improvements are identified and budgeted separately for each Zone, including all expenditures, deficits, surpluses, revenues, and reserves. Each parcel within a Zone is assessed proportionately for only those improvements provided in that Zone from which the parcel receives special benefit. The word "parcel," for the purposes of this Report, refers to an individual property assigned its own Assessment Number by the Riverside County Assessor's Office. The Riverside County Auditor/Controller uses Assessment Numbers and specific Fund Numbers, to identify on the tax roll, properties assessed for special district benefit assessments. Upon conclusion of a noticed Public Hearing, the City Council will consider all testimony and written protests presented and will direct any necessary modifications to the Report and approve the Report as submitted or amended. Following approval of the Report, the City Council will by resolution, order the improvements to be made, and confirm the levy and collection of assessments pursuant to the Act. The assessment rates and method of apportionment described in this Report as approved by the City Council defines the assessments to be applied to each parcel within the twelve zones for fiscal year 2004/05. The assessments as approved will be submitted to the Riverside County Auditor/Controller to be included on the property tax roll for each parcel for the fiscal year. If any parcel submitted for collection is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, a corrected parcel number and/or new parcel numbers will be identified and resubmitted to the County Auditor/Controller. The assessment amount to be levied and collected for the resubmitted parcel or parcels shall be based on the method of apportionment and assessment rate described in this report and approved by the City Council. MuniFinancial Page 4 Consolidated Palm Desert Landscaping and Lighting Maintenance Assessment District Engineer's Report, Fiscal Year 2004/05 B. Compliance with the. Current Legislation The District and all Zones therein have been formed pursuant to the 1972 Act. The City Council annually conducts a public hearing to accept public comments and testimony, to review the Engineer's Report and approve the annual assessments to be levied on the County tax roll for the fiscal year. All assessments described in this report and approved by the City Council have been prepared in accordance with the 1972 Act and in compliance with the provisions of the California Constitutional Article XIIID (hereafter referred to as the "Article XIIID"), which was enacted with the passage of Proposition 218 in November 1996. C. General Description of the District and Services The City annually levies and collects assessments in order to maintain and service specific improvements within the District. For fiscal year 2004/05, twelve zones will be balloted regarding the matter of increased assessments. Each of these zones, funds specific improvements and services. The District Zones and Sub -zones to be balloted in the Spring of 2004 are: • Zone # 5 Cook and Country Club — Desert Mirage Sub -zone (29 parcels) • Zone # 6 Hovley Lane — The Glen Sub -zone (16 parcels) • Zone # 6 Hovley Lane — Hovley Estates Sub -zone (16 parcels) • Zone # 6 Hovley Lane — Sonata I Sub -zone (16 parcels) • Zone # 6 Hovley Lane — Sonata II Sub -zone (94 parcels) • Zone # 6 Hovley Lane — Hovley Collection Sub -zone (38 parcels) • Zone # 6 Hovley Lane — La Paloma I Sub -zone (16 parcels) • Zone # 6 Hovley Lane — Sandpiper Court Sub -zone (16 parcels) • Zone # 6 Hovley Lane — Sandpiper West Sub -zone (16 parcels) • Zone # 6 Hovley Lane — Hovley Court West Sub -zone (16 parcels) • Zone # 8 — Palm Gate (37 parcels) • Zone #14 — K & B at Palm Desert (163 parcels) The District provides maintenance and operation of specific local landscaping and lighting improvements and associated appurtenances located within the public right-of-ways and dedicated landscape easements within each zone. The improvements and the costs of those MuniFinancial Page 5 Consolidated Palm Desert Landscaping and Lighting Maintenance Assessment District Engineer's Report, Fiscal Year 2004/05 improvements are identified and budgeted separately for each Zone, including all expenditures, deficits, surpluses, revenues, and reserves. The various improvements provided and assessed within the District can be categorized as three (3) improvement types. 1. Local street lighting (residential street lighting associated with the properties within the Zone and specific subdivisions). 2. Local landscaping improvements including parkways, perimeters, entryways, local medians, and internal landscaped amenities. 3. Special Zone services including tree trimming, graffiti and weed abatement and landscape maintenance of flood control areas (retention and detention basins). Only improvements permitted under provisions of the Act that provide a special and direct benefit to the parcels is included in the annual assessment. The costs associated with the improvements are equitably spread among all benefiting parcels in proportion to their special benefits. Only parcels that receive direct and special benefits from the improvements are assessed. Landscape improvements maintained by the District and associated with each Zone were either installed as a condition of development or were installed for the direct benefit of the properties assessed. The landscape improvements associated with each Zone may include open space areas, medians, parkways, slopes, retention and detention basin areas, and other easements and public right-of-ways that provide special benefits to the parcels. These improvements may include: turf, ground cover, shrubs and trees, irrigation systems, decorative lighting, water features, entry monuments, drainage systems and associated appurtenances. Similar to landscape improvements, street lighting improvements funded through District assessments were installed for the benefit of properties within each of the Zones and Sub -zones and the assessments provide for the maintenance, operation and energy costs related to their specific street light improvements. MuniFinancial Page 6 Consolidated Palm Desert Landscaping and Lighting Maintenance Assessment District Engineer's Report, Fiscal Year 2004/05 II. SPECIFIC IMPROVEMENTS AND SPECIAL BENEFIT ZONES The boundaries of each Zone, the location of improvements and special benefit received by the properties and property owners within each Zone are described in this section of the Report. The allocation of special benefit and general benefit from the various improvements provided within the District are summarized in the Method of Apportionment section of this Report and are identified specifically in the budget for each Zone. Zone #5 (Cook and Country Club) Zone #5 currently consists of three (3) residential subdivisions identified as Sub -zones. These three Sub -zones are known and identified the Desert Mirage (Tract 25639), Sandcastles (Tract 21338-1), and Primrose 2 (Tract 25436). Each of these Sub -zones has specific local improvements maintained by the District that were installed as part of the residential tract development. Only the Desert Mirage Sub -zone is being balloted this year for an increased assessment. These three subdivisions were originally part of a larger Zone known as Cook and Country Club that were assessed for median landscaping in the area. These three Sub -zones were previously assessed for both their local (tract specific) improvements and their proportionate share of the median landscaping. In fiscal year 1997/1998 it was determined that the median landscaping in the Cook and Country Club area was largely a general benefit and this assessment was eliminated. However, it was further determined that the parcels within these three (3) Sub -zones receive special benefit from tract specific improvements maintained by the District, and each parcel within the respective Sub -zones should continue to be assessed proportionately for the cost of services associated with those local improvements. As part of the review this fiscal year, it has been determined that fifteen percent (15%) of the improvements within the Desert Mirage Sub -Zone are of a general benefit to those properties outside of the Sub -zone. Therefore, this percentage of the costs of maintaining the Sub -zone has been removed from the assessment and must be funded from other City funding sources. Although all local landscape improvements within the Desert Mirage and Primrose 2 subdivisions have been identified as a special benefit to properties within these Sub -zones, a portion of the landscape maintenance costs for Desert Mirage is specifically for landscape maintenance of the tract's detention basin. Pursuant to Article XIIID Section 5a the existing assessment associated with this detention basin could be identified as an exempt assessment. However, since the detention basin and the landscaping associated with it were installed and constructed specifically and only for this residential development, these improvements are clearly a special benefit to parcels within this Sub -zone and the related assessment complies with the substantive requirements of the State Constitution. Zone #6 (Hovley Lane) MuniFinancial Page 7 Consolidated Palm Desert Landscaping and Lighting Maintenance Assessment District Engineer's Report, Fiscal Year 2004/05 Parcels within this Zone are located generally East of Monterey Avenue and West of Portola Avenue and includes parcels and tracts along Hovley Lane West. Zone 6 includes the following subdivisions and Sub -zones: • The Glen (Tract 25217) Service Level E • Hovley Estates (Tract 24591) Service Level D • Sonata 1 (Tract 23982) Service Level E • Sonata II (Tracts 24254 -1, 2, 3) Service Level E • Hovley Collection (Tract 24603) Service Level D • La Paloma 1 (Tract 24773-1) Service Level D • Sandpiper Court (Tract 27370) Service Level B • Hovley Court West (Tract 29585) Service Level C The parcels within these Sub -zones of Zone 6 (Hovley Lane) receive benefit from various improvements that were installed as part of the separate residential tract developments and are specific to each tract and subdivision. The assessment for each Sub -zone funds and provides for the various parkway landscaping improvements adjacent to each tract along Hovley Lane as well as specific in -tract improvements. The in -tract improvements may include street lighting; dry well and retention basin landscape maintenance; and landscaping of additional parkway areas. The overall improvements within Zone 6 include street lighting on Clover Lane, Meadow Lane, Hovley Lane West, Centennial Circle, Posada Court, Via Fonda, Sonata Court, Avenida Arcadia, Avenida Solana, Sandpiper Court, Avenida Rosario, Sandpiper Court West Hovley Court, and Diamondback Road; landscaped parkways along Hovley Lane West, Monterey Avenue, Portola Avenue and landscaped retention basins located within Hovley Estates, Hovley Collections, La Paloma 1, La Paloma 2, Sandpiper Court, and Sandpiper Court West. As part of the review this fiscal year, it has been determined that fifteen percent (15%) of the improvements within the Glen and Hovley West Sub -Zones are of a general benefit to those properties outside of the Sub -zones. Therefore, this percentage of the costs of maintaining these Sub -zones has been removed from the assessments and must be funded from other City funding sources. To the extent that some streetlights associated with the individual Sub -zones are located on the perimeter of the development and provide direct illumination to parcels outside the subdivision, a portion of the maintenance costs (15%) has been identified as a general benefit component. Zone #8 (Palm Gate). MuniFinancial Page 8 Consolidated Palm Desert Landscaping and Lighting Maintenance Assessment District Engineer's Report, Fiscal Year 2004/05 Zone #8 consists of all parcels in Tract 24287 located East of Deep Canyon Road, and North of Fred Waring Drive, on Coral Bells Circle, Daylily Circle, and Moss Rose Drive. These parcels receive benefit from the improvements and maintenance of local street lighting at the entrances to the development at the corners of Deep Canyon Road and Coral Bells Circle, Daylily Circle, and Moss Rose Drive. These parcels also receive special benefit from the improvements and maintenance of the landscaped parkways adjacent to the tract on Deep Canyon Road. Both the street lighting and landscape improvements identified for this Zone were installed as part of the residential tract development and the ongoing maintenance and operation of these improvements clearly provide special benefits to properties within the Zone. It has further been determined that these improvements were installed and are maintained solely for the benefit of properties within the Zone and the improvements provide no measurable benefit to properties outside the Zone. Any benefit conveyed to other properties or to the public at large (general benefit) is incidental. Therefore, both the interior tract street lighting and the parkway (perimeter) landscaping costs have been identified and apportioned 100% as a special benefit to all parcels within the Zone. Due to the change in service, only the lights that are at intersections will be turned on and all turf areas will have irrigation turned off and will not be mowed. Zone #14 (K & B at Palm Desert) Zone #14 is located generally North of Frank Sinatra Drive, West of Portola Avenue, East of Monterey Avenue and South of Gerald Ford Drive. The Zone includes all parcels in Tracts 28258 and 28258-1. All properties within the boundaries of Zone 14 benefit from street lighting within the development located on Drexell Drive, Heatherwood Drive, Emerson Drive and Jamerson Road, and Colebridge Street, as well as landscaping installed by the developer as part of the residential tract development in the retention basin area located on Heatherwood Drive and dry well areas within the subdivisions. As a condition of development for tracts 28258 and 28258-1, the developer (Kaufman and Broad Development) was required to form the necessary District Zone for the public improvements that would be installed as part of these subdivisions. In a Petition of Consent and Waiver dated April 4, 1996, the developer (sole owner of the property) petitioned to have the parcels within the tract annexed into the District and to be assessed annually for the cost of maintaining the improvements. This petition constitutes a 100% landowner approval pursuant to Article XIIID Section 5b, and supports a position that the existing assessment revenue is exempt. In addition to the exemption described above, a large portion of the Zone # 14 costs and existing assessment is for landscape maintenance of the tract's retention basin. Pursuant to the Article XIIID Section 5a (assessments used exclusively to fund flood control and drainage systems), further supports a position that most of the existing assessment is exempt. MuniFinancial Page 9 Consolidated Palm Desert Landscaping and Lighting Maintenance Assessment District Engineer's Report, Fiscal Year 2004/05 As part of the review this fiscal year, it has been determined that fifteen percent (15%) of the improvements within the K & B Sub -Zone are of a general benefit to those properties outside of the Sub -zone. Therefore, this percentage of the costs of maintaining the Sub -zone has been removed from the assessment and must be funded from other City funding sources. III. Method of Apportionment A. General The 1972 Act permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements which include the construction, maintenance and servicing of public lights, landscaping and appurtenant facilities. The 1972 Act further requires that the cost of these improvements be levied according to benefit rather than assessed value: "The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements." The formula used for calculating assessments in each Zone of the District therefore reflects the composition of the parcels, and the improvements and services provided, to fairly apportion the costs based on estimated benefit to each parcel. In addition, pursuant to Article XIIID Section 4 (with some exceptions) a parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred on that parcel and provides that only special benefits are assessable and the District must separate the general benefits from the special benefits. Therefore, in compliance with the new assessment requirements only assessments that are identified as either "Exempt Assessments" or "Special Benefit Assessments" are assessed. The costs of any improvements considered to be "General Benefit" have been eliminated from the District assessments. B. Benefit Analysis Each of the proposed improvements, the associated costs and assessments has been carefully reviewed by the City and have been identified and allocated based on benefit pursuant to the provisions of Article XIIID. Each improvement and the associated costs were identified as either "general benefits" (not assessed) or "special benefits". The improvements and the associated special benefit assessments have been further identified as Exempt assessments pursuant to Article XIIID Section 5, or as assessments requiring property owner balloting. Those improvements and the related assessments identified as Exempt are not subject to the procedural requirements of Article XIIID relating to property owner ballot proceedings. Although some existing assessments are considered Exempt, each improvement assessed within the District is identified as a special benefit to the parcels assessed and all related assessments are in compliance with the substantive requirements of Article XIIID Section 4. A property owner balloting has been conducted for each Zone for all special benefit assessments subject to MuniFinancial Page 10 Consolidated Palm Desert Landscaping and Lighting Maintenance Assessment District Engineer's Report, Fiscal Year 2004/05 property owner approval. The assessments shown in this Report reflects the assessment amounts approved by the property owners subject to those assessments. Exempt Assessments .Article XIIID Section 5 provides for certain existing assessments to be exempt from the substantive and procedural requirements of Article XIIID Section 4. Specifically: • Assessments used exclusively to fund sidewalks, streets, sewers, water, flood control, drainage systems, or vector control are exempt from the conformity requirement until they are increased; and, • Assessments approved by all the property owners at the time the assessments were created (originally imposed pursuant to a 100% landowner petition). Within the District, several of the Zones provide for the landscape maintenance of drainage basins and retention basins. As noted previously, the costs and assessments associated with these improvements have been identified as a special benefit to parcels within the respective Zones and therefore in compliance with the substantive requirements of Article XIIID, but were exempt from the procedural requirements at their existing assessment amount. Special Benefits The method of apportionment (method of assessment) is based on the premise that each of the assessed parcels within the District and Zones receives benefit from the improvements maintained and financed by District assessments. Specifically, the assessments associated with each Zone or sub -zone are for the maintenance of local street lighting and landscaped improvements installed as part of the original development of the parcels within the Zones. The desirability and security of properties within each Zone is enhanced by the presence of street lighting and well -maintained landscaping in close proximity to those properties. The landscape improvements provided by the District may include landscaped medians, parkways, entryways, slopes and appurtenant facilities. Street lighting improvements may include all energy costs and necessary maintenance to the facilities related thereto. The annual assessments outlined in this Report are proposed to cover the estimated costs to provide all necessary service, operation, administration, and maintenance required each year to keep these improvements in a healthy, vigorous, and satisfactory condition. The special benefits associated with the local landscaping improvements are specifically: • Enhanced desirability of properties through association with the improvements. • Improved aesthetic appeal of properties within the Zones providing a positive representation of the area. • Enhanced adaptation of the urban environment within the natural environment from adequate green space and landscaping. • Environmental enhancement through improved erosion resistance, and dust and debris control. MuniFinancial Page 11 Consolidated Palm Desert Landscaping and Lighting Maintenance Assessment District Engineer's Report, Fiscal Year 2004/05 • Increased sense of pride in ownership of property within the District resulting from well - maintained improvements associated with the properties. • Reduced criminal activity and property -related crimes (especially vandalism) against properties in the District through well -maintained surroundings and amenities including abatement of graffiti. • Enhanced environmental quality of the parcels within the Zones by moderating temperatures, providing oxygenation and attenuating noise. The special benefits of street lighting are the convenience, safety, and security of property, improvements, and goods. Specifically: • Enhanced deterrence of crime and the aid to police protection. • Increased nighttime safety on roads and highways. • Improved ability of pedestrians and motorists to see. • Improved ingress and egress to property. • Reduced vandalism and other criminal acts and damage to improvements or property. • Improved traffic circulation and reduced nighttime accidents and personal property loss. • Increased promotion of business during nighttime hours in the case of commercial properties. All of the preceding special benefits contribute to a specific enhancement and desirability of each of the assessed parcels within the District/Zone, and thereby provide an enhanced desirability of the properties. General Benefits Prior to the passage of Proposition 218, the District assessments included maintenance of landscaped medians on various arterial streets within the City. However, since most of the arterial medians within the City are maintained from the City's General Fund it was determined that the existing assessments for these improvements were largely a general benefit. Therefore in Fiscal year 1997/1998, all District assessments related to arterial medians were eliminated. Furthermore, all improvements within each of the District Zones have been carefully reviewed. Any improvement and the associated costs that are considered a general benefit to properties outside the respective Zones or to the public at large have been identified and eliminated from the annual assessments. In making this determination it should be noted that all parkway, perimeter landscaping and interior landscaping within the City is either funded and maintained by individual property owners or through some type of association, except those maintained and funded through a special District. The City does not usually maintain these types of improvements from General Fund Revenues and like other similar improvements within the City, the ongoing maintenance of these improvements are a special benefit to the properties associated with the improvements. MuniFinancial Page 12 Consolidated Palm Desert Landscaping and Lighting Maintenance Assessment District Engineer's Report, Fiscal Year 2004/05 C. Assessment Methodology Pursuant to the Act, the costs of the District may be apportioned by any formula or method that fairly distributes the net amount to be assessed, among all assessable parcels in proportion to the estimated benefits to be received by each such parcel from the improvements. The apportionment of costs used for each Zone should reflect the composition of the parcels, and the improvements and services provided based on each parcel's estimated special benefit. Equivalent Dwelling Units: To assess benefits equitably, it is necessary to relate the different type of parcel improvements to each other. The Equivalent Dwelling Unit method of assessment apportionment uses the single-family home as the basic unit of assessment. A single family home equals one Equivalent Dwelling Unit (EDU). Every other land use is converted to EDU's based on an assessment formula that equates the property's specific development status, type of development (land use), and size of the property, as compared to a single family home (SFR) and is considered appropriate for the District. The EDU 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, size and development. All assessed parcels within Zones 2, 3, 4, 5, 6, 7, 8, 9, 11, 14, 15 and 16 are entirely single-family residential parcels and the application of the EDU method of spread results in an equal assessment or per parcel assessment. Exempt parcels include easements and landscaped areas or common areas. The benefit formula applied to parcels in each Zone is based on the preceding Equivalent Dwelling Unit (EDU) tables. Each parcel's EDU correlates the parcel's special benefit received as compared to all other parcels in the Zone. Parcel Type EDUxAcres or Units = Parcel EDU Total Balance to Levy / Total EDU in Zone = Levy per EDU Levy per EDUx per Parcel EDU = Parcel Levy Amount D. Assessment Range Formula Any new or increase in assessments, require certain noticing and meeting requirements by law. The Brown Act defines the terms "new or increased assessment" to exclude certain conditions. These certain 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 MuniFinancial Page 13 Consolidated Palm Desert Landscaping and Lighting Maintenance Assessment District Engineer's Report, Fiscal Year 2004/05 where the assessment is imposed." This definition was later confirmed by Senate Bill 919 (the Proposition 218 implementing legislation). An assessment range formula for all District assessments has been confirmed through property owner ballot proceedings in compliance with the Article XIIID, and shall be applied to all future assessments within the District. The following describes this assessment range formula: Wherein, if the proposed assessment (levy per unit or rate) is less than or equal to, the prior year's maximum assessment plus the adjustments described in the following, then the new proposed assessment is not considered an increased assessment. The purpose of establishing an assessment range formula is to provide for reasonable increases and inflationary adjustment to the assessment amounts without requiring cosdy noticing and mailing procedures, which would be added to the District costs and assessments. If the proposed assessment is less than the maximum assessment approved in the previous fiscal year adjusted by a percentage no greater than three percent (3.0%), or the percentage increase of the Consumer Price Index (CPI), whichever is the lesser of the two, the assessment shall not be considered as an increase. Each year the City shall compute the percentage difference between the CPI on January 1, of each year and the CPI for the previous January 1, or a similar time period, as determined by the Bureau of Labor Statistics for all urban consumers for the Los Angeles, Anaheim, and Riverside Area. This percentage difference shall then establish the range of increased assessments allowed based on CPI. Should the Bureau of Labor Statistics revise such index or discontinue the preparation of such index, the City shall use the revised index or comparable system as approved by the City Council for determining fluctuations in the cost of living. If CPI is less than three percent (3.0%), then the allowable adjustment to the maximum assessment for each Zone may be by CPI, or a lesser percentage. If CPI is greater than three percent (3.0%), then the allowable adjustment to the proposed assessment for each Zone may be three percent (3.0%), or a lesser percentage. The fact that an assessment range formula is adopted for District assessments does not require that the adjustment be applied each year, nor does it restrict the assessments to the adjustment amount. If the budget and assessments for a given Zone does not require an increase or the increase is less than the allowable adjustment then the required budget and assessment shall be applied. If the budget and assessments for a given Zone require an increase greater than the allowable adjustment then the proposed assessment is considered an increased assessment and mailed notices, as well as property owner protest ballots are required by Article XIIID to impose the assessment increase. MuniFinancial Page 14 Consolidated Palm Desert Landscaping and Lighting Maintenance Assessment District Engineer's Report, Fiscal Year 2004/05 IV. DISTRICT BUDGETS A. Description of Budget Items The following describes the services and costs that are funded through the District, shown in the District Budgets Section III B. DIRECT COSTS: Maintenance Costs — Includes all contracted labor, material and equipment required to properly maintain the landscaping, irrigation systems, drainage systems, fencing, and entry monuments within the Zone. All improvements within the Zone are maintained and serviced on a regular basis. The frequency and specific maintenance operations required within the Zone are determined by City Staff and is based on the proposed service level of the Zone. Landscape Utilities— Includes utility costs for water required to irrigate landscaped areas and the utility costs for electricity required to run irrigation systems and ornamental lighting for landscaped areas according to the proposed service level of the Zone. Landscape Extras — Includes the replacement of any materials and equipment needed to make repairs to irrigation systems. Tree Pruning — Includes the cost of trimming and pruning trees located within the landscaped area. Street Lighting — Utility costs for electricity required to operate streetlights, as well as the maintenance of the streetlights. Special District Services — These are services provided to a specific Zone that are outside the normal maintenance services provided by the District. These costs and services may include, but are not limited to the following: • Specialized maintenance and equipment necessary for landscaped areas and appurtenant facilities associated with dry wells, retention basins and detention basins within the Zone. • The additional cost of all contracted labor, material and equipment required trimming trees in the public right of way and landscaped areas. Maintenance Repairs — This item includes repairs that are generally unforeseen and not normally included in the yearly maintenance contract costs. This may include repair of damaged amenities due to vandalism, storms, frost, etc. Also included may be planned upgrades that provide a direct benefit to the Zone. These upgrades could include replacing plant materials and/or renovation of irrigation or lighting systems. MuniFinancial Page 15 Consolidated Palm Desert Landscaping and Lighting Maintenance Assessment District Engineer's Report, Fiscal Year 2004/05 ADMINISTRATION COSTS: District Administration — The cost to all particular departments and staff of the City, for providing the coordination of District services and operations, response to public concerns and education, as well as procedures associated with the levy and collection of assessments. This item also includes the costs of contracting with professionals to provide any additional administrative, legal or engineering services specific to the District including any required notices, mailings or property owner protest ballot proceedings. County Administration Fee — This is the actual cost to the Zone for the County to collect District assessments on the property tax bills. This charge is based on a flat rate per fund number. County Per Parcel Fee — This is the cost to each Zone for the County to collect assessments on the property tax bills. This charge is on a per assessment basis and is currently estimated at $0.16 per assessment. This cost is in addition to the County Administration Fee. Note: - The administrative costs of the District are borne by each Zone in proportion to the aggregate costs of the entire District. Costs related to direct administration are identified as exempt, general and special benefits in the same proportion as the benefit finding for the Direct Service costs. All costs related to the levy of assessments such as county fees and contract administration are applied to each Zone regardless of any benefit findings (no general benefi). LEVY BREAKDOWN: Reserve Collection/(Transfer)— The Reserve Account item is provided for collection by the District of funds to operate the Zone from the time period of July 1 (beginning of the Fiscal year) through January when the County provides the City with the first installment of assessments collected from the property tax bills. Negative amounts shown for these budget items are transfers from the reserve fund that are used to reduce the Balance to Levy. The Reserve Fund eliminates the need for the City to transfer funds from non -District accounts. Other Revenues /General Fund Contribution — This item includes additional funds designated for the Zone that are not from District assessments. These funds are added to the Zone account to reduce assessments, and may be from either non -District or District sources including City General Fund Contributions and interest earnings. Balance to Levy — This is the total amount to be collected for the current fiscal year through assessments (for special benefits) or from other revenue source (for general benefits). The Balance to Levy represents the sum of Total Direct and Administration Costs, the Reserve Account/Other Revenue Source, the Beginning Balance, and the Contribution Replenishment. Only those costs related to the improvements identified as special benefits are levied and collected on the tax roll. MuniFinancial Page 16 Consolidated Palm Desert Landscaping and Lighting Maintenance Assessment District Engineer's Report, Fiscal Year 2004/05 DISTRICT STATISTICS: Total Parcels — The total number of parcels within the Zone boundary. Total Parcels Levied — The total number of parcels within the Zone that are assessed. Non -assessable lots or parcels may include parcels of land principally encumbered by public right-of-ways, easements, common areas, and/or parcels within the boundaries of the Zone that currently do not benefit from the improvements due possibly to development restrictions. Total Equivalent Dwelling Unit (EDU) — Equivalent Dwelling Unit (EDU) is a numeric value calculated for each parcel based on the parcel's land use and size. The EDU shown in the Zone budget, (Section III B), represents the sum total of all parcel EDU's that receive special benefits from the improvements. Levy per EDU— This amount represents the rate being applied to each parcel's individual EDU. The Levy per Equivalent Dwelling Unit, is the result of dividing the total Balance to Levy, by the sum of the Zone EDU's, for the fiscal year. MuniFinancial Page 17' B. District Budgets ZONE 05 DESERT MIRAGE Total General Special Budget Benefit Benefit DIRECT COSTS Maintenance Costs $5,520 $828 $4,692 Landscape Utilities 2,300 345 1,955 Landscape Extras (Repairs/Materials/Equipment) 550 83 468 Tree Pruning 1,302 195 1,107 Street Lighting 450 68 383 Special District Services 0 0 0 Annual Direct Costs (Subtotal) 10,122 1,518 8,604 Renovation/Capital Improvement Expenditures 0 0 0 Total Direct Costs 10,122 1,518 8,604 ADMINISTRATION COSTS District Administration 1,352 203 1,149 County Administration Fee 10 2 9 County Per Parcel Fee 6 1 5 Administration Costs (Subtotal) 1,368 206 1,163 LEVY BREAKDOWN Total Direct and Admin. Costs 11,490 1,724 9,766 Reserve Collection/ (Transfers) 1,149 172 977 Other Revenues/General Fund Contribution 0 0 0 Capital Improvement Project Collection/ (Transfers) 0 0 0 Balance to Levy 12,639 1,896 10,743 DISTRICT STATISTICS Total Parcels 29 Total Parcels Levied 29 Total Equivalent Dwelling Units 29.00 Levy per EDU $370.44 RESERVE INFORMATION Beginning Reserve Balance Reserve Account Activity Anticipated Reserve Balance ASSESSMENT INFORMATION Maximum Assessment Rate Prior Year 2003/04 Maximum Assessment Rate FY 2004/05 CPI Applied : 3.00% 0 977 977 71.32 370.44 MuniFinancial Page 18 ZONE 06 HOVLEY GLEN Total General Special Budget Benefit Benefit DIRECT COSTS Maintenance Costs $1,980 $297 $1,683 Landscape Utilities 825 124 701 Landscape Extras (Repairs/Materials/Equipment) 400 60 340 Tree Pruning 693 104 589 Street Lighting 0 0 0 Special District Services 0 0 0 Annual Direct Costs (Subtotal) 3,898 585 3,313 Renovation/Capital Improvement Expenditures 0 0 0 Total Direct Costs 3,898 585 3,313 ADMINISTRATION COSTS District Administration 828 124 704 County Administration Fee 2 0 2 County Per Parcel Fee 3 0 3 Administration Costs (Subtotal) 833 125 708 LEVY BREAKDOWN Total Direct and Admin. Costs 4,731 710 4,022 Reserve Collection/ (Transfers) 473 71 402 Other Revenues/General Fund Contribution 0 0 0 Capital Improvement Project Collection/ (Transfers) 0 0 0 Balance to Levy 5,204 781 4,424 DISTRICT STATISTICS Total Parcels 16 Total Parcels Levied 16 Total Equivalent Dwelling Units 16.00 Levy per EDU $276.48 RESERVE INFORMATION Beginning Reserve Balance 0 Reserve Account Activity 402 Anticipated Reserve Balance 402 ASSESSMENT INFORMATION Maximum Assessment Rate Prior Year 2003/04 Maximum Assessment Rate FY 2004/05 CPI Applied : 3.00% 141.28 276.48 MuniFinancial Page 19 ZONE 06 HOVLEY ESTATES Total General Special Budget Benefit Benefit DIRECT COSTS Maintenance Costs $2,550 $0 $2,550 Landscape Utilities 1,062 0 1,062 Landscape Extras (Repairs/Materials/Equipment) 450 0 450 Tree Pruning 575 0 575 Street Lighting 150 0 150 Special District Services 0 0 0 Annual Direct Costs (Subtotal) 4,787 0 4,787 Renovation/Capital Improvement Expenditures 0 0 0 Total Direct Costs 4,787 0 4,787 ADMINISTRATION COSTS District Administration 872 0 872 County Administration Fee 2 0 2 County Per Parcel Fee 3 0 3 Administration Costs (Subtotal) 877 0 877 LEVY BREAKDOWN Total Direct and Admin. Costs 5,664 0 5,664 Reserve Collection/ (Transfers) 566 0 566 Other Revenues/General Fund Contribution 0 0 0 Capital Improvement Project Collection/ (Transfers) 0 0 0 Balance to Levy 6,231 0 6,231 DISTRICT STATISTICS Total Parcels 17 Total Parcels Levied 16 Total Equivalent Dwelling Units 16.00 Levy per EDU $389.42 RESERVE INFORMATION Beginning Reserve Balance 0 Reserve Account Activity 881 Anticipated Reserve Balance 881 ASSESSMENT INFORMATION Maximum Assessment Rate Prior Year 2003/04 Maximum Assessment Rate FY 2004/05 CPI Applied : 3.00% 256.72 389.42 MuniFinancial Page 20 ZONE06 SONATA 1 Total General Special Budget Benefit Benefit DIRECT COSTS Maintenance Costs $2,411 $362 $2,049 Landscape Utilities 1,004 151 853 Landscape Extras (Repairs/Materials/Equipment) 450 68 383 Tree Pruning 594 89 505 Street Lighting 150 23 128 Special District Services 0 0 0 Annual Direct Costs (Subtotal) 4,609 691 3,918 Renovation/Capital Improvement Expenditures 0 0 0 Total Direct Costs 4,609 691 3,918 ADMINISTRATION COSTS District Administration 882 132 750 County Administration Fee 2 0 2 County Per Parcel Fee 3 0 3 Administration Costs (Subtotal) 887 133 754 LEVY BREAKDOWN Total Direct and Adrnin. Costs 5,496 824 4,672 Reserve Collection/ (Transfers) 550 82 467 Other Revenues/General Fund Contribution 0 0 0 Capital Improvement Project Collection/ (Transfers) 0 0 0 Balance to Levy 6,046 907 5,139 DISTRICT STATISTICS Total Parcels 16 Total Parcels Levied 16 Total Equivalent Dwelling Units 16.00 Levy per EDU $321.18 RESERVE INFORMATION Beginning Reserve Balance 0 Reserve Account Activity 0 Anticipated Reserve Balance 0 ASSESSMENT INFORMATION Maximum Assessment Rate Prior Year 2003/04 Maximum Assessment Rate FY 2004/05 CPI Applied : 3.00% 137.18 321.18 MuniFinancial Page 21 ZONE06 SONATA 2 Total General Special Budget Benefit Benefit DIRECT COSTS Maintenance Costs $4,637 $0 $4,637 Landscape Utilities 1,932 0 1,932 Landscape Extras (Repairs/Materials/Equipment) 550 0 550 Tree Pruning 1,458 0 1,458 Street Lighting 250 0 250 Special District Services 0 0 0 Annual Direct Costs (Subtotal) 8,827 0 8,827 Renovation/Capital Improvement Expenditures 0 0 0 Total Direct Casts 8,827 0 8,827 ADMINISTRATION COSTS District Administration 1,542 0 1,542 County Administration Fee 2 0 2 County Per Parcel Fee 19 0 19 Administration Costs (Subtotal) 1,563 0 1,563 LEVY BREAKDOWN Total Direct and Admin. Costs 10,390 0 10,390 Reserve Collection/ (Transfers) 1,039 0 1,039 Other Revenues/General Fund Contribution 0 0 0 Capital Improvement Project Collection/ (Transfers) 0 0 0 Balance to Levy 11,429 0 11,429 DISTRICT STATISTICS Total Parcels 94 Total Parcels Levied 94 Total Equivalent Dwelling Units 94.00 Levy per EDU $121.56 RESERVE INFORMATION Beginning Reserve Balance 0 Reserve Account Activity 1,039 Anticipated Reserve Balance 1,039 ASSESSMENT INFORMATION Maximum Assessment Rate Prior Year 2003/04 Maximum Assessment Rate FY 2004/05 CPI Applied : 3.00% 46.00 121.56 MuniFinancial Page 22, ZONE 06 HOVLEY COLLECTION Total General Special Budget Benefit Benefit DIRECT COSTS Maintenance Costs $5,309 $0 $5,309 Landscape Utilities 2,212 0 2,212 Landscape Extras (Repairs/Materials/Equipment) 550 0 550 Tree Pruning 1,100 0 1,100 Street Lighting 300 0 300 Special District Services 0 0 0 Annual Direct Costs (Subtotal) 9,471 0 9,471 Renovation/Capital Improvement Expenditures 0 0 0 Total Direct Costs 9,471 0 9,471 ADMINISTRATION COSTS District Administration 1,342 0 1,342 County Administration Fee 2 0 2 County Per Parcel Fee 8 0 8 Administration Costs (Subtotal) 1,352 0 1,352 LEVY BREAKDOWN Total Direct and Admin. Costs 10,823 0 10,823 Reserve Collection/ (Transfers) 1,082 0 1,082 Other Revenues/General Fund Contribution 0 0 0 Capital Improvement Project Collection/ (Transfers) 0 0 0 Balance to Levy 11,905 0 11,905 DISTRICT STATISTICS Total Parcels 38 Total Parcels Levied 38 Total Equivalent Dwelling Units 38.00 Levy per EDU $313.28 RESERVE INFORMATION Beginning Reserve Balance 0 Reserve Account Activity 1,082 Anticipated Reserve Balance 1,082 ASSESSMENT INFORMATION Maximum Assessment Rate Prior Year 2003/04 Maximum Assessment Rate FY 2004/05 CPI Applied : ' 3.00% 123.34 313.28 MuniFinancial Page 23 ZONE06 LA PALOMA 1 Total General Special Budget Benefit Benefit DIRECT COSTS Maintenance Costs $2,424 $0 $2,424 Landscape Utilities 1,010 0 1,010 Landscape Extras (Repairs/Materials/Equipment) 450 0 450 Tree Pruning 450 0 450 Street Lighting 150 0 150 Special District Services 0 0 0 Annual Direct Costs (Subtotal) 4,484 0 4,484 Renovation/Capital Improvement Expenditures 0 0 0 Total Direct Costs 4,484 0 4,484 ADMINISTRATION COSTS District Administration 872 0 872 County .Administration Fee 2 0 2 County Per Parcel Fee 3 0 3 Administration Costs (Subtotal) 877 0 877 LEVY BREAKDOWN Total Direct and Admin. Costs 5,361 0 5,361 Reserve Collection/ (Transfers) 536 0 536 Other Revenues/General Fund Contribution 0 0 0 Capital Improvement Project Collection/ (Transfers) 0 0 0 Balance to Levy 5,897 0 5,897 DISTRICT STATISTICS Total Parcels 17 Total Parcels Levied 16 Total Equivalent Dwelling Units 16.00 Levy per EDU $368.58 RESERVE INFORMATION Beginning Reserve Balance 0 Reserve Account Activity 536 Anticipated Reserve Balance 536 ASSESSMENT INFORMATION Maximum Assessment Rate Prior Year 2003/04 Maximum Assessment Rate FY 2004/05 CPI Applied : 3.00% 198.14 368.58 MuniFinancial Page 24 ZONE 06 SANDPIPER COURT Total General Special Budget Benefit Benefit DIRECT COSTS Maintenance Costs $2,424 $0 $2,424 Landscape Utilities 1,010 0 1,010 Landscape Extras (Repairs/Materials/Equipment) 450 0 450 Tree Pruning 585 0 585 Street Lighting 150 0 150 Special District Services 0 0 0 Annual Direct Costs (Subtotal) 4,619 0 4,619 Renovation/Capital Improvement Expenditures 0 0 0 Total Direct Costs 4,619 0 4,619 ADMINISTRATION COSTS District Administration 882 0 882 County Administration Fee 2 0 2 County Per Parcel Fee 3 0 3 Administration Costs (Subtotal) 887 0 887 LEVY BREAKDOWN Total Direct and Admin. Costs 5,506 0 5,506 Reserve Collection/ (Transfers) 551 0 551 Other Revenues/General Fund Contribution 0 • 0 0 Capital Improvement Project Collection/ (Transfers) 0 0 0 Balance to Levy 6,057 0 6,057 DISTRICT STATISTICS Total Parcels 19 Total Parcels Levied 16 Total Equivalent Dwelling Units 16.00 Levy per EDU $378.56 RESERVE INFORMATION Beginning Reserve Balance 0 Reserve Account Activity 551 Anticipated Reserve Balance • 551 ASSESSMENT INFORMATION Maximum Assessment Rate Prior Year 2003/04 Maximum Assessment Rate FY 2004/05 CPI Applied : 3.00% 352.14 378.56 MuniFinancial Page 25 ZONE 06 SANDPIPER WEST Total General Special Budget Benefit Benefit DIRECT COSTS Maintenance Costs $2,424 $0 $2,424 Landscape Utilities 1,010 0 1,010 Landscape Extras (Repairs/Materials/Equipment) 450 0 450 Tree Pruning 543 0 543 Street Lighting 150 0 150 Special District Services 0 0 0 Annual Direct Costs (Subtotal) 4,577 0 4,577 Renovation/Capital Improvement Expenditures 0 0 0 Total Direct Costs 4,577 0 4,577 ADMINISTRATION COSTS District Administration 882 0 882 County Administration Fee 2 0 2 County Per Parcel Fee 3 0 3 Administration Costs (Subtotal) 887 0 887 LEVY BREAKDOWN Total Direct and Admin. Costs 5,464 0 5,464 Reserve Collection/ (Transfers) 546 0 546 Other Revenues/General Fund Contribution 0 0 0 Capital Improvement Project Collection/ (Transfers) 0 0 0 Balance to Levy 6,011 0 6,011 DISTRICT STATISTICS Total Parcels 16 Total Parcels Levied 16 Total Equivalent Dwelling Units 16.00 Levy per EDU $375.66 RESERVE INFORMATION Beginning Reserve Balance 0 Reserve Account Activity 546 Anticipated Reserve Balance 546 ASSESSMENT INFORMATION Maximum Assessment Rate Prior Year 2003/04 $ 352.14 Maximum Assessment Rate FY 2004/05 $ 375.66 CPI Applied : 3.00% MuniFinancial Page 26 ZONE 06 HOVLEY WEST Total General Special Budget Benefit Benefit DIRECT COSTS Maintenance Costs $3,042 $456 $2,586 Landscape Utilities 1,268 190 1,078 Landscape Extras (Repairs/Materials/Equipment) 500 75 425 Tree Pruning 891 134 757 Street Lighting 150 23 128 Special District Services 0 0 0 Annual Direct Costs (Subtotal) 5,851 878 4,973 Renovation/Capital Improvement Expenditures 0 0 0 Total Direct Costs 5,851 878 4,973 ADMINISTRATION COSTS District Administration 974 146 828 County Administration Fee 2 0 2 County Per Parcel Fee 3 0 3 Administration Costs (Subtotal) 979 146 833 LEVY BREAKDOWN Total Direct and Admin. Costs 6,830 1,024 5,806 Reserve Collection/ (Transfers) 683 102 581 Other Revenues/General Fund Contribution 0 0 0 Capital Improvement Project Collection/ (Transfers) 0 0 0 Balance to Levy 7,513 1,126 6,387 DISTRICT STATISTICS Total Parcels 16 Total Parcels Levied • 16 Total Equivalent Dwelling Units 16.00 Levy per EDU $399.18 RESERVE INFORMATION Beginning Reserve Balance 0 Reserve Account Activity 581 Anticipated Reserve Balance 581 ASSESSMENT INFORMATION Maximum Assessment Rate Prior Year 2003/04 Maximum Assessment Rate FY 2004/05 CPI Applied : 3.00% 287.16 399.18 MunnFinancial Page 27 ZONE 08 PALM GATE Total General Special Budget Benefit Benefit DIRECT COSTS Maintenance Costs $1,757 $0 $1,757 Landscape Utilities 732 0 732 Landscape Extras (Repairs/Materials/Equipment) 400 0 400 Tree Pruning 1,215 0 1,215 Street Lighting 300 0 300 Special District Services 0 0 0 Annual Direct Costs (Subtotal) 4,404 0 4,404 Renovation/Capital Improvement Expenditures Total Direct Costs 0 4,404 0 0 0 4,404 ADMINISTRATION COSTS District Administration 958 0 958 County Administration Fee 25 0 25 County Per Parcel Fee 7 0 7 Administration Costs (Subtotal) 990 0 990 LEVY BREAKDOWN Total Direct and Admin. Costs 5,394 0 5,394 Reserve Collection/ (Transfers) 539 0 539 Other Revenues/General Fund Contribution 0 0 0 Capital Improvement Project Collection/ (Transfers) 0 0 0 Balance to Levy 5,934 0 5,934 DISTRICT STATISTICS Total Parcels 37 Total Parcels Levied 37 Total Equivalent Dwelling Units 37.00 Levy per EDU $160.38 RESERVE INFORMATION Beginning Reserve Balance 0 Reserve Account Activity 539 Anticipated Reserve Balance 539 ASSESSMENT INFORMATION Maximum Assessment Rate Prior Year 2003/04 $ 69.16 Maximum Assessment Rate FY 2004/05 $ 160.38 CPI Applied : 3.00% MuniFinancial Page 28 ZONE 14K&B Total General Special Budget Benefit Benefit DIRECT COSTS Maintenance Costs $10,471 $1,571 $8,900 Landscape Utilities 4,363 654 3,709 Landscape Extras (Repairs/Materials/Equipment) 600 90 510 Tree Pruning 2,115 317 1,798 Street Lighting 300 45 255 Special District Services 0 0 0 Annual Direct Costs (Subtotal) 17,849 2,677 15,172 Renovation/Capital Improvement Expenditures 0 0 0 Total Direct Costs 17,849 2,677 15,172 ADMINISTRATION COSTS District Administration 2,524 379 2,145 County Administration Fee 25 4 21 County Per Parcel Fee 33 5 28 Administration Costs (Subtotal) 2,582 387 2,194 LEVY BREAKDOWN Total Direct and Admin. Costs 20,431 3,065 17,366 Reserve Collection/ (Transfers) 2,043 306 1,737 Other Revenues/General Fund Contribution 0 0 0 Capital Improvement Project Collection/ (Transfers) 0 0 0 Balance to Levy 22,474 3,371 19,103 DISTRICT STATISTICS Total Parcels 165 Total Parcels Levied 163 Total Equivalent Dwelling Units 163.00 Levy per EDU $117.20 RESERVE INFORMATION Beginning Reserve Balance 0 Reserve Account Activity 1,737 , Anticipated Reserve Balance 1,737 ASSESSMENT INFORMATION Maximum Assessment Rate Prior Year 2003/04 Maximum Assessment Rate FY 2004/05 CPI Applied : 3.00% 57.24 117.20 MuniFinancial Page 29 Appendix A — District Boundary Maps The Boundary Maps for the District and/or Zones are on file in the office of Public Works and are made part of this Report. The Boundary Maps are also available for inspection at the Office of Public Works. MuniFinancial Page 30 Appendix B — 2004/05 Assessment Rates for the Zones to be Balloted Parcel identification, for each lot or parcel within the District, shall be the parcel as shown on the Riverside County Assessor's map for the year in which this Report is prepared. Non -assessable lots or parcels may include areas of public streets and other roadways (typically not assigned an APN by the County); dedicated public easements, open space areas and rights -of -ways including public greenbelts and parkways; utility rights -of -ways; common areas; landlocked parcels, small parcels vacated by the County, bifurcated lots, and any other property that can not be developed. These types of parcels are considered to receive little or no benefit from the improvements and are therefore exempted from assessment. Properties outside the District boundary receive no direct or special benefits from the improvements provided by the District and are not assessed. Parcel identification, for each lot or parcel within the District, shall be the parcel as shown on the Riverside County Assessor's map for the year in which this Report is prepared. The land use classification for each parcel is based on the Riverside County Assessor's Roll. A listing of parcels assessed within this District, along with the proposed assessment amounts, shall be submitted to the City Clerk, under a separate cover, and by reference is made part of this Report. Approval of this Report (as submitted or as modified) confirms the method of apportionment and the maximum assessment rate to be levied against each eligible parcel and thereby constitutes the approved levy and collection of assessments for the fiscal year. The parcels and the amount of assessment to be levied shall be submitted to the County Auditor/Controller and included on the property tax roll for the fiscal year. If any parcel submitted for collection is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, a corrected parcel number and/or new parcel numbers will be identified and resubmitted to the County Auditor/Controller. The assessment amount to be levied and collected for the resubmitted parcel or parcels shall be based on the method of apportionment and assessment rate approved in this Report. Therefore, if a single parcel has changed to multiple parcels, the assessment amount applied to each of the new parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment. MuniFinancial Page 31 LLD Name Total District Assessment (FY 04/05) Existing Levy Per EDU Proposed Annual Levy Per EDU (FY 04/05) Palm Gate $5,934.00 $69.16 $160.38 The Glen $4,424.00 $141.28 $276.48 Hovley Estates $5,885.00 $256.72 $389.42 Sonata I $6,046.00 $137.18 $321.18 Sandpiper West $6,011.00 $352.14 $375.66 Sandpiper Court $6,057.00 $352.14 $378.56 La Paloma I $5,897.00 $198.14 $368.58 Hovley West $6,387.00 $287.16 $399.18 Sonata II $11,429.00 $46.00 $121.56 Hovley Collection $11,905.00 $123.34 $313.28 Desert Mirage $10,743.00 $71.32 $370.44 Kaufman & Broad $19,103.00 $57.24 $117.20 MuniFinanci al Page 32