HomeMy WebLinkAboutAGENDA REPORT 2018 0321 CCSA REG ITEM 09A CITY OF MOORPARK,CALIFORNIA
City Council Meeting
of March 21, 2018 _ Item: 9.A.
ACT ION Approved staff recommendation and directed staff
to include explanatory tax exhibit for residents with future agenda item
By M. Benson
MOORPARK CITY COUNCIL
AGENDA REPORT
TO: The Honorable City Council
FROM: Mayor Parvin and Councilmember Mikos
DATE: March 13, 2018 (CC Meeting of 3/21/2018)
SUBJECT: Consider Concerns Expressed About Moorpark Highlands
Community Facilities District 2004-1 Special Tax for Police Services
and Landscape Maintenance District 22 Assessments and Provide
Direction to Staff on Setting Amount of Special Tax for Fiscal Year
2018/19
BACKGROUND
Over the past year a group of residents from the Moorpark Highlands development have
provided written comments, testified during the annual public hearings for levying
annual assessments for landscape maintenance districts, and made comments during
the public comment portion of Council meetings regarding their concerns with
Landscape District 22 (LMD — 22) and Moorpark Highlands Community Facilities District
2004-1 (CFD 2004-1) The group also met individually with the Mayor and
Councilmembers, as well as with Captain Reilly and City Staff to discuss their concerns
about CFD 2004-1 special tax for police services and various items about LMD — 22,
including the concept of special benefit and general benefit
The representatives requested to continue the discussion about LMD — 22 finances and
CFD special taxes LMD — 22 is also referred to as Moorpark Highlands LLMD on the
Ventura County Secured Tax Statement
On October 18, 2017 a City Council Ad Hoc Committee consisting of Mayor Parvin and
Councilmember Mikos were appointed to meet with the representatives and report back
to the City Council
DISCUSSION
The Committee has met twice (February 1 and 27, 2018) with the Moorpark Highlands
representatives to discuss their concerns The representatives requested elimination of
the special tax for police services and suggested various alternatives to reduce the tax
over a few years until it reaches zero The special tax rate amount is $586 14 in Fiscal
Year 2017118 for each residential property Note that the 35 deed restricted affordable
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Honorable City Council
March 21, 2018 Regular Meeting
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units in the Moorpark Highlands project do not pay this special tax. During the
discussion about the special taxes for police services it was explained to the
representatives that the City Council is restricted by law from committing on budgetary
matters for more than one year including actions on setting the special tax rate amount.
With that understanding, the Ad Hoc Committee is recommending the City Council
endorse the following proposal to reduce the amount of the special tax.
Fiscal Year Projected
Tax Rate
Proposed
Tax Rate
Annual
General Fund
Reduced
Revenue
CUMULATIVE
General Fund
Reduced
Revenue
2018-19 $ 604.14 $ 450.00 $ 98,804 $ 98,804
2019-20 $ 622.26 $ 350.00 $ 174,519 $ 273,323
2020-21 $ 640.93 $ 250.00 $ 250,586 $ 523,909
2021-22 $ 660.16 $ 0.00 $ 423,163 $ 947,072
Thereafter 3% annual increase $ 0.00
If the City Council concurs with this proposal, it would take action to set the special tax
rate at $450.00 for Fiscal Year 2018/19. In spring 2019 the City Council would be
presented with the proposal to set the special tax rate at $350.00 and in spring 2020 to
set the special tax rate at $250.00. If the proposal is fully implemented, the special tax
rate would be set at $0 in spring 2021 and future City Councils could act to keep the
special tax at that rate for each year thereafter.
On the matter of the LMD concerns, the representatives felt there was good progress on
the landscaping matters but wanted to continue to discuss some matters related to
budgeting practices. It was agreed the representatives would prepare a list of concerns
and staff would meet with them to discuss these concerns prior to the LMD public
hearing in May 2018. The representatives understand there are no commitments on the
LMD matters of concern and they can present any remaining concerns at the May 2018
hearing.
FISCAL IMPACTS
There will be no impact on the LMD matters, since the costs are funded by
assessments and not the City’s General Fund. If the CFD 2004-1 special tax amount
for police services is set consistent with the proposal, there would be a 3-year
cumulative reduction of about $523,909. The reduction amount for Fiscal Year 2021/22
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Honorable City Council
March 21, 2018 Regular Meeting
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would be $423,163 and would increase by 3% annually thereafter. If the City retains the
same level of police services, the reduction amount would need to be offset from an
increase to the General Fund operating revenue, or by reducing other General Fund
expenditures or from the General Fund reserve. The cumulative General Fund reduction
in revenue is $947,072 over the next four years.
STAFF RECOMMENDATION
The Ad Hoc Committee recommends approving the proposal for a reduction of the CFD
special tax amount and implementing the 2018/19 Fiscal Year special services tax rate
reduction to $450.00 per residential lot.
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