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Home My WebLink AboutAGENDA REPORT 2025 0115 CC REG ITEM 09B POWERPOINTParks and Recreation Maintenance and Improvement District Item: 9B Consider Options to Increase the Parks and Recreation Maintenance and Improvement District Assessment Revenue ITEM: 9.B. BACKGROUND Parks Maintenance District AD-85-1 Established in 1985 pursuant to the Landscape and Lighting Act of 1972. All properties are assessed (Residential, Commercial, and Industrial) Measure passed with 61.5% support -$15.31 per single-family residence Moorpark had 4 parks in 1985 Proposition 218 –1996 -‘Right to Vote on Taxes Act’ Amended the California Constitution and changed requirements for formation of Assessment Districts AD-85-1 was disbanded as it did not comply with Prop 218 Assessment was $41.16 per single-family residence BACKGROUND Measure P -1997 Special Municipal Election for a Park Maintenance Special Tax Proposed maximum rate $68.50 per single-family residence for 10 years Measure failed to meet 2/3 majority vote despite 55% support Parks Maintenance 1997 -1998 Loss of revenue for park maintenance and reliance on General Fund and Other sources Cost saving measures implemented: •Closure of Monte Vista Park •Elimination of Recreation Program/Events – July 3rd, Easter Egg Hunt, Breakfast w/ Santa •Reduction of Park Maintenance Service Levels BACKGROUND In an effort to acquire funding for services, City commenced Proposition 218 (mailed ballot) proceedings in 1999: •Passed with 71.5% voter support for Parks Maintenance District •Assessment Rate *$39.00 per SFE with annual CPI increase not-to-exceed 3% •Moorpark had 14 parks in 1999. •Special Benefit vs General Benefit o Prop 218 requires an analysis of ‘Special’ vs ‘General’ benefit o Special Benefit can be paid with assessment revenue, General Benefit paid with non- assessment revenue •Assessment Engineer determined 75% Special Benefit & 25% General Benefit * Assessment Rate of $39.00 per SFE was equivalent to 52% of total park operating budget (well below the ‘special’ assessment cap of 75%) FY 2024/25 BUDGET & MAINTENCE COSTS FY 2024/25 Operating Budget & Assessment Revenue •Parks Operating Budget $2,545,133 •Assessment Rate $72.88 per SFE •Assessment Revenue $1,007,619 •General Fund Subsidy $1,537,514 •19 Improved Parks •Assessment Revenue covers 39% of Operating Budget for park maintenance operations •General Fund covers 61% Maintenance Cost Savings Containment Strategies •Increased In-house operations -$50,000 annual savings •Aeration, fertilization, overseeding, •Mulch procurement / installation -$58,000 annual savings •Water Conservation Efforts •WeatherTRAK irrigation controllers -14.5% water reduction •Turf Removal –52% water reduction & $28,000 annual savings in maintenance costs 10-YEAR BUDGET SUMMARY Budget * Actual Costs Assessment Revenue GF Transfer (Subsidy) FY 14/15 $ 2,562,820 $ 2,246,141 $ 788,459 $ 1,449,468 FY 15/16 $ 2,727,354 $ 2,270,055 $ 779,960 $ 1,481,129 FY 16/17 $ 2,616,545 $ 2,126,845 $ 782,342 $ 1,335,666 FY 17/18 $ 3,189,367 $ 2,525,989 $ 818,161 $ 1,699,479 FY 18/19 $ 2,783,549 $ 2,347,122 $ 820,207 $ 1,499,030 FY 19/20 $ 2,773,321 $ 2,228,866 $ 861,477 $ 1,346,464 FY 20/21 $ 2,409,446 $ 2,039,608 $ 873,677 $ 1,160,731 FY 21/22 $ 2,468,210 $ 2,163,002 $ 945,486 $ 1,211,497 FY 22/23 $ 2,562,742 $ 2,078,694 $ 955,993 $ 1,090,789 FY 23/24 $ 2,544,220 $ 2,096,437 $ 993,069 $ 1,097,272 *The calculation includes the revenue received from the coin operated light timers,and the revenue received from MUSD for 50%of the tennis court maintenance at AVCP.On average,this generates approximately $12,200/year in revenue ($5,400/year from the coin operated timers and $6,800/year from MUSD).The coin timers were removed in 2024 and will not provide a revenue source in future years. Since 2018 Park Maintenance Budget & GF transfer has been significantly reduced and has stabilized. Costs will most likely increase in future years as labor, material and utility costs increase. Doubtful there will be reductions in expenditures in future years without reductions to maintenance operations. ASSESSMENT REVENUE STUDY •Based on FY 2023/24 GF transfer (actual costs) and current methodology, 75% of maintenance costs would increase assessment revenue from $993,069 to $1,572,327, resulting in assessment rate increase from $70.76 to $112 SFE. •This increase in assessment revenue would reduce GF transfer from $1,097,272 to $524,110. •Additionally, Capital Assets should be considered in Park Maintenance budget. Currently the GF funds the replacement of the City’s park Assets. Asset replacement included in the Park Maintenance budget would result in assessment rate increase from $112 SFE to $133 SFE. REVENUE ENHANCEMENT OPTIONS 1. Proposition 218 Assessment Mail Ballot Proceeding o Increase existing Park Maintenance District assessment. o Requires a mail ballot vote by City’s property owners. o Must be approved by a majority vote of weighted ballots. o Must demonstrate compliance with Proposition 218. Process Overview: o City Council adopts resolution to initiate the proceedings. o Engineer's Report prepared detailing methodology and assessment rate increases pursuant to Prop 218. o City Council adopts resolution of intention setting a public hearing. o City Council adopts resolution levying the assessments. o City provides mailed notice of the public hearing, holds public hearing, and conducts Assessment Ballot Proceeding. 2. Citywide Special Parcel Tax o Levy a special tax dedicated to funding park maintenance. o Requires calling for the election on either a County established election date or a special election held for the measure. o Must be approved by two-thirds vote of the City’s registered voters. o Does not need to be based upon special benefits the taxpayers receive from the improvements. Process Overview: o City Council proposes the adoption of a Special Tax by resolution or ordinance, adopted after notice and a public hearing. o Statement indicating specific purpose of the Special Tax. o Proceeds of the Special Tax must be applied only to identified purposes. o Creation of an account into which the proceeds are deposited. o Annual report filed with the City Council on all revenue and expenditures. REVENUE ENHANCEMENT OPTIONS NEXT STEPS RFP to engage consultant •Planning strategy, preliminary assessment engineering and/or preliminary Special Tax analysis. •Develop Public Opinion Survey and feasibility study. City Council Decision •Mail Ballot Proceeding o Preparation of Engineer’s Report in compliance with Prop 218. o Initiate Mail Ballot Proceeding •Special Tax Measure o Drafting resolution calling for an election o Coordinating with County Registrar of Voters to include on a County established election date or special election. Timeline Considerations •Mail Ballot Proceeding •Planning strategy, preliminary assessment engineering, and feasibility analysis – late Winter 2025 •Public Opinion Survey – Spring 2025 •Mail Ballot Proceeding – schedule is flexible but needs to conclude by November 2025 considering County requirement. •Special Tax •Needs to align with established County election schedule or consider a special election. •Process needs to align with County requirement - new taxes approved by December 1. Budget •Estimated costs: $140,000 to $175,000 TIMELINE CONSIDERATIONS AND BUDGET QUESTIONS?