Operating and CIP Budget Fiscal Year 2015-16

Lighting and Landscape District [229-8351]

ACTIVITY DESCRIPTION

 CITY OF MORGAN HILL  FY15-16  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP

Lighting and Landscape District (LAD) funds are derived from special property assessments to support City mainte- nance services in park and landscape areas within residential developments that were originally included in the Dis- trict. Proper maintenance of the properties benefits the owners. Assessment charges are collected by the County on property tax rolls and remitted to the City. There are currently 20 subareas in the LAD that include a total of 757 prop- erties. Each lot within a specific subarea is assessed the same amount. The City manages the expenses of each of the subareas to maintain a positive fund balance and avoid, as long as possi- ble, the need for assessment rate increases. Nevertheless, over the past several years accumulated increases in main- tenance costs have necessitated an increase in assessment rates. To date, the majority of rate increases have been within the original range of assessment rates set at the time of annexation. For FY15-16, it is proposed that the assess- ment be raised for five subareas, all of which are within each areas current range. For one subarea, Sunnyside, a re- duction in assessment is proposed. District maintenance is done almost exclusively by contract. The level of maintenance at each subarea varies based upon the needs of the subarea and funding available. In three of the 20 subareas, a negative fund balance exists. Pur- suant to Prop 218, ballot measures were conducted in the past, but neither passed thus disapproving an increase in the assessment rate. As a result, maintenance services in these three subareas continue at a reduced level limited to annual weed abatement only. This strategy is working to reduce these negative fund balances.

FY 14-15 ACCOMPLISHMENTS

 Continued to improve the financial strength of the District by aligning costs and expenses per sub areas

 Installed significant improvements, where funds allowed, in the landscapes and hardscapes of several subareas

FY 15-16 ACTIVITY GOALS

 Make improvements in each subarea where positive fund balances exist

 Conduct additional outreach activities, when needed, to better connect residents with their District

COUNCIL GOALS

The Lighting and Landscape District will implement policies and activities that are aligned with the priorities, goals and strategies the City Council has set for 2015:

Supporting Youth



o Park maintenance activities provide a safe and supportive community that provides opportunities for Morgan Hill’s youth to succeed and develop their full potential

FINANCIAL COMMENTS

Maintenance services are provided through contract services and are paid by annual assessments from the property owners benefiting from the improvements. There is no impact to the City’s General Fund or other funds.

CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP BUDGET

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