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3A Public Hearing 2013 0715
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3A Public Hearing 2013 0715
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CM City Clerk-City Council - Document Type
Staff Report
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7/15/2013
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_CC Agenda 2013 0715 CS+RG
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\City Clerk\City Council\Agenda Packets\2013\Packet 2013 0715
PowerPoint 3A Public Hearing 2013 0715 CBD Formation
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\City Clerk\City Council\Agenda Packets\2013\Packet 2013 0715
Reso 2013-102
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\City Clerk\City Council\Resolutions\2013
Supplement 3A Public Hearing 2013 0715 CBD Prop 218 Procedures
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\City Clerk\City Council\Agenda Packets\2013\Packet 2013 0715
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7 <br />Eachoftheseprogramsandactivitiesworktogethertocreateamorepleasingenvironmentwithinthedistrictthatis <br />conducivetostrengtheningthecurrentandfutureeconomicvitalityofthisareathroughtheattractionandretentionof <br />newbusinessandincreasedcommerce.Theprograms,improvementsandservicesaredesignedto specificallybenefit <br />identifiedpropertieswithintheCBDboundaries.TheproposedCBDassessmentswillonlybeleviedonidentified <br />propertieswithintheCBDboundariesandassessmentrevenueswillbespenttodeliverservicesthatprovideadirect <br />andspecialbenefittoassessedparcelsandtoimprovetheeconomicvitalityoftheseproperties. <br />General vsSpecialBenefitAnalysis <br />AsstipulatedbyProposition218,assessmentDistrictprogramsandactivitiesconferacombinationofgeneraland <br />specialbenefitstoproperties,buttheonlyprogrambenefitsthatcanbeassessedarethosethatprovidespecialbenefit <br />toDistrictproperties.For the purposes of this analysis, a “general benefit” is hereby defined as: “A benefit to <br />propertiesintheareaandinthesurroundingcommunityorbenefittothepublicingeneralresultingfromthe <br />improvement,activity,orservicetobeprovidedbythe assessment levied”. “Special benefit” as defined by the <br />CaliforniaStateConstitutionmeansadistinctbenefitoverandabovegeneralbenefitsconferredonrealproperty <br />locatedintheDistrictortothepublicatlarge. <br />CBDprogramsandactivities,inaccordancewithArticle13DSection4oftheCaliforniaStateConstitutionconfera <br />combinationofgeneralandspecialbenefits.Onlyprogrambenefitswhichareattributedtospecialbenefitsconferred <br />ontheidentifiedparcelscanbefundedthroughassessments.Aportionoftheprogramcostsareconsidered <br />attributabletogeneralbenefitsandmustbeassignedavalue. <br />ItistheopinionofthisEngineerthatbecausealloftheproposedprogramsandservicesaresupplementalinnature <br />andarelimitedtoidentifiedparcelsonlywithintheproposeddistrictboundaries,thatageneralbenefitvaluewillbe <br />setat arelativelynominalrateof 3%ofthetotaladjustedcosts.Totaladjustedcostsincludeactualproposed <br />assessmentdistrictprogramcostsplusanyadditionalsupplementalormatchingprogramcostsaswellasapplied <br />creditsfromsourcessuchasstartupgrants,cashandin-kindservicecontributionsfordistrictformationandowners <br />associationBoard/Committeememberservicecredits.Thisleavesavalueof97%attributabletospecialbenefit <br />relatedcosts.Sincethetotalprogramcostisestimatedat $399,830 (seeYear1CostlistinStep5laterinthis <br />Report),themaximumspecialbenefitportionwhichcanbefundedthroughpropertyassessmentsis $387,835. <br />Remainingcostswhichareattributedtogeneralbenefitswillneedtobefundedfromothersources.(e.g. <br />public/privatematchinggrants,startupgrants,in-kindservicecontributionsfordistrictformation,startupvolunteer <br />creditsorongoingboardmembervolunteercredits).IntheopinionofthisEngineer,thereareotheridentifiedrevenue <br />sources/creditsthatarepartofthebenefitanalysisasdelineatedinStep5and6laterinthisReport.
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