Maintenance Assessment District Community Workshop

Transcription

1 Maintenance Assessment District Community Workshop (1) SUMMERFIELD, (3) RIVER RIDGE, (9) STRAWBERRY FIELDS, (10) COUNTRY CLUB ESTATES, (11) ST. TROPEZ, (12) STANDARD PACIFIC, (13) LE VILLAGE, (14) CALIFORNIA COVE, (21) CYPRESS POINTE, (23) GREYSTONE, (24) VINEYARDS, (48) VICTORIA ESTATES, AND (53) HUFF COURT March 9, 2016

2 THREE CRITICAL BUILDING BLOCKS OF GOOD GOVERNMENT Oxnard 2020 Determining our Future Now 2

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4 IMPLEMENTATION ACTION PLAN: ONE-YEAR PLAN Recommendation 5 of One Year Plan (Priority 1B): Prepare a comprehensive financial assessment of the Environmental Resources, Golf Fund, Performing Arts Center Fund, benefit assessment and Development impact fee funds. 4

5 BACKGROUND September 2014 Organizational Assessment determined that Maintenance Assessment Districts (MADs) required a comprehensive review due to deficits and surpluses accrued in various districts. October 27, 2015 City Council received presentation concerning the key findings and recommendations in the NBS report. Recommendations Included: District Boundary Audit completed December 15, 2015 Review and Update of Internal Goals and Policies completed Establishment of Landscape Maintenance Service Levels completed District Budget Audit preliminary findings January 13, 2016 District Levy Audit preliminary findings February 24,

6 BOUNDARY, BUDGET AND LEVY AUDITS For each of the Maintenance Assessment Districts, the following items were reviewed: Engineer s Reports Identified Authorized Improvements, approved rates, method to allocate costs City maintenance services provided Services contracted to be provided Maintenance items being provided vs. what is authorized to be maintained Actual utility invoices Additional invoices, receipts, credit card statements Allocation of City Staff costs for maintenance and administration Location of utility meters 2015/16 Tax Roll and assessment amounts From review of the above items, the following occurred: Revised budgets were created Compared 2015/16 parcels levied to district boundaries Calculated new 2015/16 maximum assessments and corresponding levies Identified any discrepancies 6

7 AUDIT FINDINGS Audit findings related to: LMD 1, LMD 3, LMD 9, LMD 10, LMD 11, LMD 12, LMD 13, LMD 14, LMD 21, LMD 23, LMD 24, LMD 48 and LMD 53 No parcels outside district boundaries are being levied Minimal number of parcels within boundary not levied LMD 3 1 parcel within boundary not levied ($162.86/year) LMD 9 1 parcel within boundary not levied ($55.82/year) LMD parcels within boundary not levied ($737.86/year) Districts levied at or less than the maximum Districts levied consistent with approved methodology Additional authorized improvements LMD 48 asphalt/sidewalks, medians on Patterson Rd and Gonzales Rd LMD 53 hardscape maintenance, mailbox enclosures Projected annual surplus (3 districts) LMD 3, LMD 14, LMD 48 Projected annual deficits (10 districts) LMD 1, LMD 9, LMD 10, LMD 11, LMD 12, LMD 13, LMD 21, LMD 23, LMD 24 and LMD 53 7

8 DEFINITIONS OF BUDGET ITEMS The following definitions describe the costs and expenses included in the district budgets: Prof Contracts: contract costs of a third party responsible for the ongoing maintenance of the district improvements. Additional Services: material or supplies related to the ongoing maintenance of the improvements. Utility: Electric and water utility costs required for the operation and maintenance of the improvements. Trash: includes the costs associated with the disposal of waste products from the district. Direct Costs: City staff time and labor related to the actual maintenance of the improvements for City maintained districts. Costs are spread based on square footage being maintained. Admin Costs: includes the costs to all particular departments and staff of the City for providing the administration, coordination and management of the Districts services; including the creation of the annual Engineer s Report, resolutions and placing the assessment amounts onto the County tax roll each year, along with responding to any public inquires. Costs are spread proportionately based on percentage of the budget costs for each district. Additional Authorized Improvements/Services: A $5,000 placeholder has been used until estimates are provided. County Fee: Administration and collection fees charged by the Ventura County Auditor- Controller and Tax Collector each year. The 2015/16 County Fees are $0.17 per assessment per parcel plus 0.25% of amount submitted. Contingency: 10% contingency in anticipation of any unforeseen expenses. 8

9 ANTICIPATED ANNUAL BUDGET AND SURPLUS / (DEFICIT) District Name Prof Contracts Add l Services Utility Trash Direct Costs Admin Add l Auth Costs Improvs County Fee Contingency Total Budget 2016/17 Maximum(1) Projected 2016/17 Surplus/Deficit LMD 1 (Summerfield) $0 $0 $4,078 $0 $27,837 $2,136 $0 $110 $3,416 $37,578 $13,007 ($24,571) LMD 3 (River Ridge) 33, , , ,448 70,926 84,036 13,110 LMD 9 (Strawberry Fields) 0 0 6, ,271 2, ,719 51,914 12,671 (39,243) LMD 10 (Country Club Estates) , ,471 3, ,179 67,973 23,919 (44,055) LMD 11 (St. Tropez) , ,589 1, ,389 26,276 6,990 (19,285) LMD 12 (Standard Pacific) 0 0 1, ,710 5, , ,232 22,394 (79,838) LMD 13 (Le Village) , ,150 5, ,457 93,023 18,045 (74,979) LMD 14 (California Cove) 14, , , ,255 24,800 36,693 11,893 LMD 21 (Cypress Pointe) , , (182) LMD 23 (Greystone) , ,111 5,588 (1,524) LMD 24 (Vineyards) 0 0 2, ,428 2, ,567 39,234 18,300 (20,934) LMD 48 (Victoria Estates) 24, , ,532 5, ,555 50, ,286 98,182 LMD 53 (Huff Court) , ,755 3,314 (3,441) (1) 2016/17 Maximum includes levy audit proposed corrections, and the 2016/17 Consumer Price Index for applicable districts. Pre-Proposition 218 Districts have no annual inflator and the rates have remained frozen at the 1996/97 levies; LMD 1, LMD 3, LMD 9, LMD 10, LMD 11, LMD 12, LMD 13, LMD 21, LMD 23, LMD 24. 9

10 DISTRICTS WITH DEFICITS Reduce Service Level Based on annual budgets and levy amounts, determine districts that should have a reduced level of service Reduce service level to align cost of services provided with revenue generated by assessments Increase Assessments Determine districts that need Proposition 218 increases Prioritize to address highest projected annual deficits first District Name Total Budget 2016/17 Maximum Projected 2016/17 Surplus/ Deficit 2016/17 Rates LMD 12 (Standard Pacific) $102,232 $22,394 ($79,838) $87.82/SFR LMD 13 (Le Village) 93,023 18,045 (74,979) /SFR LMD 10 (Country Club Estates) 67,973 23,919 (44,055) /SFR LMD 9 (Strawberry Fields) 51,914 12,671 (39,243) 55.82/SFR LMD 1 (Summerfield) 37,578 13,007 (24,571) 88.48/SFR LMD 24 (Vineyards) 39,234 18,300 (20,934) /SFR LMD 11 (St. Tropez) 26,276 6,990 (19,285) 84.22/SFR LMD 53 (Huff Court) 6,755 3,314 (3,441) /SFR LMD 23 (Greystone) 7,111 5,588 (1,524) 91.60/SFR LMD 21 (Cypress Pointe) 1, (182) 9.34/SFR 10

11 DISTRICTS WITH SURPLUSES Districts with projected annual surplus District Name Total Budget 2016/17 Maximum Projected 2016/17 Surplus/ Deficit 2016/17 Rates 11/30/2015 Fund Balance LMD 3 (River Ridge) $70,926 $84,036 $13,110 $162.86/SFR $129, LMD 14 (California Cove) 24,800 36,693 11, /SFR (9,417.65) LMD 48 (Victoria Estates)(1) 50, ,286 98, /SFR 473, (1) LMD /17 rates: $332.48/SFR, $1,252.15/acre lot 157 (3.58 acres) LMD 3 (River Ridge) and LMD 48 (Victoria Estates) Improvement replacement plan, surplus spending Establish appropriate reserve level Reduce annual levies to coincide with projected expenses LMD 14 (California Cove) Reduce annual levies to coincide with projected expenses. 11

12 NEXT STEPS Staffing of Special Districts Administrator position Directly or indirectly responsible to ensure City maintenance staff and contractors provide authorized services to appropriate service level standards Re-bid maintenance work for all districts using correct list of authorized improvements and A/B levels of service City to implement procedures to verify contractor s maintenance activities Monthly reporting, independent verification before payment of invoices Begin Annual Process for 2016/17 (budgets, Engineer s Reports) Reduce level of service to match available revenue or propose assessment increase Increase/Replacement Assessments Prioritization of Districts, largest projected annual deficit districts first Districts with Surpluses Improvement replacement plan, establish reserves, levy credits Continue community outreach efforts 12

13 QUESTIONS?