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HomeMy WebLinkAboutFY 23-24 District 10-2 ReportCity of Palm Springs – Engineer’s Report Parkway Maintenance District No. 10, Zone 2, Mountain Gate II Subject Fiscal Year: 2023 / 2024 _________________________________________________________________________________________________ CITY OF PALM SPRINGS ENGINEER’S REPORT PARKWAY MAINTENANCE DISTRICT NO. 10 – ZONE 2 “MOUNTAIN GATE II” FISCAL YEAR 2023 / 2024 City of Palm Springs – Engineer’s Report Parkway Maintenance District No. 10, Zone 2, Mountain Gate II Subject Fiscal Year: 2023 / 2024 _________________________________________________________________________________________________ Engineer's Report Affidavit Palm Springs Parkway Maintenance District No. 10, Zone 2 Mountain Gate II” This Report describes the District including the improvements, budget, parcels and assessments to be levied for the subject fiscal year, as they existed at the time of the passage of the Resolution of Intention. Reference is hereby made to the Riverside County Assessor’s maps for a detailed description of the lines and dimensions of parcels within the District. The undersigned respectfully submits the enclosed Report as directed by the City Council. By: ________________________________ Joel Montalvo, P.E. City Engineer City of Palm Springs Civil Engineer C 62624 City of Palm Springs – Engineer’s Report Parkway Maintenance District No. 10, Zone 2, Mountain Gate II Subject Fiscal Year: 2023 / 2024 _________________________________________________________________________________________________ CITY OF PALM SPRINGS ENGINEER’S REPORT PARKWAY MAINTENANCE DISTRICT NO. 10, ZONE 2 MOUNTAIN GATE II The Undersigned respectfully submits the enclosed report as directed by the City Council. The undersigned certifies that he is a Professional Engineer, registered in the State of California. _________________________ Joel Montalvo, P.E. City Engineer City of Palm Springs County of Riverside, California I HEREBY CERTIFY that the enclosed Engineer’s Report, together with the Assessment Roll and Assessment Diagram thereto attached, was filed with me on: 29th day of June, 2023. _________________________ Brenda Pree City Clerk City of Palm Springs County of Riverside, California I HEREBY CERTIFY that the enclosed Engineer’s Report, together with the Assessment Roll thereto attached, was approved and confirmed by the Palm Springs City Council on: 24th day of July, 2023. _________________________ Brenda Pree City Clerk City of Palm Springs County of Riverside, California City of Palm Springs – Engineer’s Report Parkway Maintenance District No. 10, Zone 2, Mountain Gate II Subject Fiscal Year: 2023 / 2024 _________________________________________________________________________________________________ TABLE OF CONTENTS EXECUTIVE SUMMARY ............................................................................................................ 1 A. Introduction .................................................................................................... 1 B. Overview ........................................................................................................ 1 DESCRIPTION OF THE DISTRICT ............................................................................................ 2 A. Description of the District ................................................................................ 2 B. Description of Improvements and Services ..................................................... 2 METHOD OF APPORTIONMENT .............................................................................................. 4 A. General .......................................................................................................... 4 B. Benefit Analysis .............................................................................................. 5 C. Assessment Methodology .............................................................................. 5 D. Assessment Formula………………………………………………….…..………..7 DISTRICT BUDGET ................................................................................................................... 9 A. Description of Budget Items............................................................................ .9 B. District Budget ................................................................................................ 9 APPENDIX A – District Diagrams ............................................................................................. 11 APPENDIX B – Assessment Roll .............................................................................................. 10 City of Palm Springs – Engineer’s Report Parkway Maintenance District No. 10, Zone 2, Mountain Gate II Subject Fiscal Year: 2023 / 2024 _________________________________________________________________________________________________ City of Palm Springs, Parkway Maintenance District No. 10, Zone 2 – Engineer’s Report Page 2 EXECUTIVE SUMMARY A. INTRODUCTION The purpose of this Engineer’s Report (hereinafter referred to as the “Report ”) is to set forth the engineering analysis and findings for the levy of assessments in the City of Palm Springs (hereinafter referred to as the “City”) Parkway Maintenance District No. 10, Zone 2, (“Mountain Gate II”), (hereinafter referred to as the “District”), for the subject fiscal year, in compliance with the requirements of Chapter 3, of the Landscaping and Lighting Act of 1972 (hereinafter referred to as the “1972 Act”) which is part 2, Division 15 of the California Streets and Highways Code and as provided by Article XIII D of the California Constitution (hereinafter referred to as “Article XIII D”). This District was formed to supplement certain City revenues and help finance the costs of providing for parkway landscape maintenance within the District’s boundaries. The City initiates proceedings for annual levying of assessments within the District by passing a resolution, which states that the District was established under the Act. This resolution also describes the improvements, describes the name and location of the District, and preliminarily approves the Engineer’s Report. The report prepared by the engineer must include an estimate of the costs of the improvements, a diagram, i.e., map of the District showing the boundary of the District and an assessment of the estimated costs of the improvements against the parcels or lots which benefit from the improvements. Once the report is completed it is presented to the City Council for its review and approval as presented, or it may be modified and approved. After the report is approved, the City Council may adopt a Resolution of Intention, which declares its intent to levy and collect assessments, describes the improvements, and refers to the report for details of the District. The Resolution of Intention also sets a time and place for a hearing on the proposed assessments. B. OVERVIEW The existing Parkway Maintenance District No. 10, Zone 1, (Mountain Gate) is comprised of the 308 residential parcels of Tracts 30963-1, 30963-2 and 30963. The District provides for the maintenance of local landscape improvements associated with development of those properties including parkway landscaping along Highway 111 and Gateway Drive as well as specific public areas within the development. In 2005, Annexation No. 1 of Tracts 32028-1 and 32028, (Mountain Gate II), to the District was approved, which expanded the western boundaries of the existing District and facilitated the maintenance and operation of additional landscape improvements along State Highway 111 installed in connection with the development of the residential properties within the Mountain Gate II subdivision. Annexation No. 1 has been identified as Zone 2 of Parkway Maintenance District No. 10. Although the landscape improvements associated with the Mountain Gate II development are similar to the improvements provided in Zone 1 of the District, the improvements to be installed and maintained are a direct result of the Mountain Gate II development and the cost of maintaining these improvements shall be budgeted and apportioned to only the properties within the Mountain Gate II development, identified as Zone 2 of the District. The District described in this report includes all lots within the residential area identified as “Mountain Gate II”, consisting of Tract 32028-1and Tract 32028. City of Palm Springs – Engineer’s Report Parkway Maintenance District No. 10, Zone 2, Mountain Gate II Subject Fiscal Year: 2023 / 2024 _________________________________________________________________________________________________ City of Palm Springs, Parkway Maintenance District No. 10, Zone 2 – Engineer’s Report Page 3 The City proposes to annually levy and collect special assessments to continue the maintenance of the improvements within the District. Assessments within the District are proposed to be levied annually, pursuant to the Landscape and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code (the “1972 Act”) and in compliance with the substantive and procedural requirements of the California State Constitution Article XIIIC and XIIID (“Proposition 218”). The assessments described in this Engineer’s Report (hereinafter referred to as the “Report”) shall be levied upon each parcel within the boundaries of the District and assessments shall be proportional to the special benefit received from the maintenance of the improvements. For the District, a benefit assessment rate per parcel is established based upon estimated and actual operations and maintenance costs for the year. This Report describes the District and the proposed assessments for the subject fiscal year. The annual budget for the maintenance and operation of the improvements is based on estimated expenses for the upcoming fiscal year. The word “parcel,” for the purposes of this Report, refers to an individual property assigned its own Assessment Parcel Number by the Riverside County (“County”) Assessor’s Office. The Riverside County Auditor/Controller uses Assessment Parcel Numbers and specific Fund Numbers to identify on the tax roll properties assessed for special district benefit assessments. DESCRIPTION OF THE DISTRICT A. DESCRIPTION OF THE DISTRICT The District described in this report includes all lots within the residential area identified as “Mountain Gate II”, consisting of Tract 32028-1 and Tract 32028. The District includes 196 single family residential lots. The purpose of the District is to ensure the ongoing maintenance and servicing of local street landscaping improvements installed in connection with development of properties within the District. This District will provide the financial mechanism (annual assessments) by which the ongoing operation and maintenance of these improvements will be funded. The District structure, proposed improvements, method of apportionment and assessments described in this Report are based on improvement plans including all estimated direct expenditures, incidental expenses, and reserves associated with the maintenance and servicing of the improvements. B. DESCRIPTION OF IMPROVEMENTS AND SERVICES The purpose of the District is to ensure the ongoing maintenance, operation and servicing of parkway landscape improvements within the District. These improvements may include, but are not limited to, palm trees, turf areas with mowing strips, desert indigenous trees and ground cover, annual flowers, a sprinkler irrigation and emitter drip system, landscape drainage system, walkways and associated appurtenant facilities located in the dedicated landscaped parkway (street right-of-way) on the east side of State Highway 111 (North Palm Canyon Drive); and all materials, equipment, utilities, labor and appurtenant facilities related to the operation and maintenance of the parkway landscape improvements. The estimated annual cost to provide and maintain the improvements within the District shall be allocated to each property in proportion to the special benefits received. The Method of Apportionment described in this Report utilizes commonly accepted assessment engineering practices and has been established pursuant to the 1972 Act and the provisions of Proposition 218. City of Palm Springs – Engineer’s Report Parkway Maintenance District No. 10, Zone 2, Mountain Gate II Subject Fiscal Year: 2023 / 2024 _________________________________________________________________________________________________ City of Palm Springs, Parkway Maintenance District No. 10, Zone 2 – Engineer’s Report Page 4 Improvements and Services Permitted Pursuant to the 1972 Act As generally defined by the 1972 Act and applicable to this District, improvements and the associated assessments may include one or more of the following: 1) The installation or planting of landscaping; 2) The installation or construction of statuary, fountains, and other ornamental structures and facilities; 3) The installation or construction of public lighting facilities including, but not limited to, street lights and traffic signals; 4) The installation of park or recreational improvements including, but not limited to, all of the following: a) Land preparation, such as grading, leveling, cutting and filling, sod, landscaping, irrigation systems, sidewalks, and drainage; b) Lights, playground equipment, play courts, and public restrooms; c) The acquisition of land for park, recreational, or open-space purposes; 5) The installation or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance or servicing thereof; 6) The acquisition of any associated existing improvement; 7) The maintenance or servicing of any of the foregoing including the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement including, but not limited to: a) Repair, removal, or replacement of all or any part of any improvements; b) Grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities; c) Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; d) The removal of trimmings, rubbish, debris, and other solid waste; e) The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti; f) Electric current or energy, gas, or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements; g) Water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements; 8) Incidental expenses associated with the improvements including, but not limited to: a) The cost of preparation of the report, including plans, specifications, estimates, diagram, and assessment; b) The costs of printing, advertising, and the publishing, posting and mailing of notices; c) Compensation payable to the County for collection of assessments; d) Compensation of any engineer or attorney employed to render services; City of Palm Springs – Engineer’s Report Parkway Maintenance District No. 10, Zone 2, Mountain Gate II Subject Fiscal Year: 2023 / 2024 _________________________________________________________________________________________________ City of Palm Springs, Parkway Maintenance District No. 10, Zone 2 – Engineer’s Report Page 5 e) Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements; and, f) Costs associated with any elections held for the approval of a new or increased assessment. Landscaping Improvements The landscaping improvements to be maintained by the District may include, but are not limited to palm trees, turf areas with mowing strips, desert indigenous trees and ground cover, annual flowers, a sprinkler irrigation and emitter drip system, landscape drainage system, walkways and associated appurtenant facilities located in the dedicated landscaped parkway (street right-of-way) on the east side of State Highway 111 extending the length of the Mountain Gate II development. The ongoing maintenance, servicing and operation of these improvements have been identified as a special benefit to the residential properties within Tracts 32028-1 and 32028, and the annual assessments described herein will provide funding for the materials, equipment, utilities, labor, appurtenant facilities and incidental expenses related thereto as permitted under the provisions of the 1972 Act. Specifically not included as part of the improvements and facilities for the District are: • Landscaped areas located on private property; • Landscaped areas located outside the boundaries of the District; • Improvements that are funded by other sources available to the City including other assessments; and • Landscaped areas maintained and funded by the Homeowner’s Association established for this development including well sites, open space and park areas located within the development. METHOD OF APPORTIONMENT A. GENERAL The 1972 Act permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements, which include the construction, maintenance, and servicing of public lights, landscaping, parks, open space areas and appurtenant facilities. The 1972 Act further requires that the cost of these improvements be levied according to benefit rather than assessed value: “The net amount to be assessed upon lands within an assessment district or District may be apportioned by any formula or method which fairly distributes t he net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.” The formula used for calculating assessments reflects the composition of the parcels and the improvements and services provided within the District to fairly apportion the costs based on estimated benefit to each parcel. In addition, Article XIII D requires that a parcel’s assessment may not exceed the reasonable cost of the proportional special benefit conferred on that parcel. Article XIII D provides that only special benefits are assessable and the City must separate the general benefits from the special benefits. City of Palm Springs – Engineer’s Report Parkway Maintenance District No. 10, Zone 2, Mountain Gate II Subject Fiscal Year: 2023 / 2024 _________________________________________________________________________________________________ City of Palm Springs, Parkway Maintenance District No. 10, Zone 2 – Engineer’s Report Page 6 B. BENEFIT ANALYSIS The improvements within the District, the associated costs and assessments have been carefully reviewed, identified and allocated based on special benefit pursuant to the provisions of the 1972 Act and the Constitution. All improvements associated with the District have been identified as necessary, required and/or desired for the orderly development of the properties within the “Mountain Gate II” development to their full potential, consistent with the proposed development plans and applicable portions of the City General Plan. As such, these improvements would be necessary and required of individual property owners for the development of such properties and the ongoing operation, servicing and maintenance of these improvements should reasonably be the financial obligation of those properties. Therefore, the improvements and the annual costs of ensuring the maintenance and operation of the improvements are considered a direct and special benefit to all residential properties within the District. The method of apportionment (method of assessment) described herein is based on the premise that each assessed parcel within the District receives special benefit from the improvements and the desirability and security of each property is enhanced by the presence of well-maintained landscaping in close proximity to those properties. The special benefits to properties within the District associated with the landscape improvements are specifically: ▪ Enhanced desirability of properties through association with the improvements; ▪ Improved aesthetic appeal of properties providing a positive representation of the area; ▪ Enhanced adaptation of the urban environment within the natural environment from adequate green space, open space areas and landscaping; ▪ Environmental enhancement through improved erosion resistance, dust and debris control, and fire prevention; ▪ Increased sense of pride in ownership of property within the District resulting from well- maintained improvements associated with the properties; and ▪ Enhanced environmental quality of the parcels by moderating temperatures, providing oxygenation and attenuating noise. All of the preceding special benefits contribute to a specific enhancement and desirability of each of the assessed parcels within the District. Although the improvements may include landscaping improvements and other amenities available or visible to the public at large, the maintenance of these improvements is only necessary for the properties within the District and are not required nor necessarily desired by any properties or developments outside the District boundary. Therefore, any public access or use of the improvements by others is incidental and there is no measurable general benefit to properties outside the District or to the public at large. C. ASSESSMENT METHODOLOGY The landscape improvements installed in connection with the development of residential properties within Tracts 32028-1 and 32028 (“Mountain Gate II”) and will be maintained by the District shall be fairly distributed among all benefiting parcels based upon the special benefit received by each parcel. The District is comprised of 196 residential parcels and various private streets, public easements and open space areas. While the various private streets, public easements and open space areas within the Mountain Gate II development may be assigned an Assessor’s Parcel Number by the County Assessor’s Office, it has been determined that these parcels (identified as letter lots on the approved tract maps) resulted City of Palm Springs – Engineer’s Report Parkway Maintenance District No. 10, Zone 2, Mountain Gate II Subject Fiscal Year: 2023 / 2024 _________________________________________________________________________________________________ City of Palm Springs, Parkway Maintenance District No. 10, Zone 2 – Engineer’s Report Page 7 from the planned development of the residential properties and these parcels receive no direct and special benefit from the improvements, in fact some of these parcels contain the landscaped areas to be maintained by the District as well as landscaped areas that will be maintained by the Homeowner’s Association established for the Mountain Gate development. Since the improvements to be maintained by the District have been installed and constructed in conjunction with the development of all residential parcels within Tracts 32028-1 and 32028, it has been determined that each and every residential parcel within the development shall be assessed for the net annual costs associated with the ongoing maintenance of those improvements. While it is evident that all residential properties within the District receive special benefit, it is also recognized that in this particular development, the residential parcels directly adjacent to the improvements have enhanced benefits resulting from their proximity to the improvements. Specifically, twenty-one (21) parcels (Lots 29 through 38 of Tract 32028; and Lots 81 through 91 of Tract 32028-1) are directly adjacent to the landscape improvements, which slope up from the backyards of these properties to the Highway 111 (the improvements are at a higher elevation). This physical relationship to the improvements provides these properties expanded green space behind their homes that provide a visual enhancement to the property; improved erosion and dust control; and increased temperature moderation resulting from the trees and irrigation. While factors such as temperature moderation versus distance are measurable values for determining variances in special benefit, other factors such as enhanced visual benefit tend to be more subjective. However it is reasonable to conclude that collectively, these enhanced benefits associated with properties adjacent to the improvements are appropriately represented by an estimated ten percent (10%) increase in their special benefit as compared to the other residential properties within Annexation No. 1. Therefore, in order to apportion special benefit to all parcels within the District, a weighted method of apportionment known as an Equivalent Benefit Unit (EBU) methodology has been utilized to calculate a corresponding and equitable assessment for each parcel. It has been determined that all residential parcels within the development that are not immediately adjacent to the improvements receives similar and equal special benefit from the improvements and have been assigned a weighted allocation of one (1.0) EBU. As previously noted, it has also been determined that the residential parcel immediately adjacent to the improvements receive approximately a 10% greater special benefit than the other residential parcels within the development, and each of these parcels has been assigned a weighted allocation of one and one-tenth (1.1) EBU. Parcels identified as private streets; public easements and open space areas have been assigned a zero (0.0) EBU. Based on these weighted factors, an assessment rate (rate per EBU) for the District is calculated by taking the Total Net Cost to be assessed (“Balance to Levy”), then dividing that amount by the Total Number of EBU’s assigned to all parcels within the District. Total Balance to Levy / Total EBU = Levy per EBU (assessment rate) The assessment amount for each parcel is calculated by multiplying the assessment rate (“Levy per EBU”) by the EBU assigned to each parcel. Levy per EBU x Each Parcel’s Individual EBU = Parcel Levy Amount Since each residential parcel not immediately adjacent to the improvements has been assigned 1.0 EBU, the assessment obligation for each these residential parcels will be equal to the annual assessment rate. Since each residential parcel immediately adjacent to the improvements has been assigned 1.1 EBU, the assessment obligation for each residential of these parcels will be equal to 1.1 times the annual assessment rate. D. ASSESSMENT FORMULA Any new or increased assessment requires certain noticing and meeting requirements by law. Prior to the passage of Proposition 218 (California Constitution Articles XIIIC and XIIID), City of Palm Springs – Engineer’s Report Parkway Maintenance District No. 10, Zone 2, Mountain Gate II Subject Fiscal Year: 2023 / 2024 _________________________________________________________________________________________________ City of Palm Springs, Parkway Maintenance District No. 10, Zone 2 – Engineer’s Report Page 8 legislative changes in the Brown Act defined a "new or increased assessment" to exclude certain conditions. These conditions included "any assessment that does not exceed an assessment formula or range of assessments previously adopted by the agency or approved by the voters in the area where the assessment is imposed." This definition and conditions were later confirmed through Senate Bill 919 (Proposition 218 implementing legislation). An Assessment Range Formula was included as part of the original formation of the District. The purpose of establishing the Assessment Range Formula is to provide for reasonable increases and inflationary adjustment to annual costs and assessments without requiring costly noticing and mailing procedures, which could add to the costs and assessments. An original maximum assessment amount of $103,841 was established for the first fiscal year 2005/2006 this District was formed (the Initial Maximum Assessment). Future District Reports will identify as part of the District Budget an Adjusted Maximum Assessment Rate in accordance with the Assessment Range Formula for each subsequent fiscal year. The Assessment Range Formula for this District is generally defined: • If the proposed annual assessment for the upcoming fiscal year is less than or equal to the adjusted Maximum Assessment Rate, then the proposed annual assessment is not considered an increased assessment. • The Maximum Assessment Rate is equal to the Initial Maximum Assessment Rate of $103,841 established in fiscal year 2005/2006, adjusted annually by the annual percentage change in the Consumer Price Index (CPI) of “All Urban Consumers” for the Los Angeles-Orange-Riverside County Area. The CPI used for establishing subsequent Maximum Assessment Rates shall be for the annual percentage change from the most current month published by the U. S. Department of Labor, Bureau of Labor Statistics; at the time the Engineer’s Report for the District is prepared. Beginning with the second fiscal year (fiscal year 2006/2007) and each fiscal year thereafter, the Maximum Assessment Rate will be recalculated and a new Adjusted Maximum Assessment Rate will be established for the fiscal year utilizing the Assessment Range Formula described above. The Maximum Assessment Rate shall be calculated independent of the annual budget and proposed assessment. The annual percentage change in CPI shall be based on the annual percentage change established by the U.S. Department of Labor, Bureau of Labor Statistics. Should the Bureau of Labor Statistics revise such index or discontinue the preparation of such index, the City shall use the revised index or comparable system as approved by the City Council for determining fluctuations in the cost of living. Any proposed annual assessment less than or equal to the Adjusted Maximum Assessment Rate is not considered an increased assessment, even if the proposed assessment is significantly greater than the assessment applied in the prior fiscal year. To impose a new or increased assessment other than the annual inflationary adjustment provided by the preceding Assessment Range Formula, the City must comply with the provisions of the California Constitution Article XIIID Section 4c, that requires a public hearing and certain protest procedures including mailed notice of the public hearing and property owner protest balloting. Property owners through the balloting process must approve a proposed new or increased assessment before any such assessment may be imposed. City of Palm Springs – Engineer’s Report Parkway Maintenance District No. 10, Zone 2, Mountain Gate II Subject Fiscal Year: 2023 / 2024 _________________________________________________________________________________________________ City of Palm Springs, Parkway Maintenance District No. 10, Zone 2 – Engineer’s Report Page 9 DISTRICT BUDGET A. DESCRIPTION OF BUDGET ITEMS For the purpose of estimating costs for the maintenance and servicing, actual costs are used where possible. But where actual maintenance experience is lacking, cost estimates will be used to determine costs, as follows: Parkway maintenance: Includes maintenance labor, materials and equipment required to properly maintain the authorized improvements and services within the District. Water costs: The cost of irrigation water for the landscape to be maintained is based upon actual Desert Water Agency billings on public landscaped areas being maintained within the District. Electrical energy costs: Energy costs included are those necessary for the operation of irrigation controls. Incidental costs: Costs for special items, such as costs of levying the assessments with the County Tax Collector, anticipated utility rate hikes, or other such costs, are determined individually. Another Incidental Cost is the expense of Assessment Engineering services. This includes costs of performing annual assessment engineering, determining existing or estimated costs, retaining of consultants, preparation of the Engineer’s Report, and other related costs, such as publication of notices, mailings, etc. Another Incidental Cost is the County Assessor-Tax Collector’s charge of $25 per County assessment account plus $0.20 per levied parcel, to place the assessments on the tax rolls. This charge will be distributed between the benefit Districts. Miscellaneous: All cost estimates shall be rounded to the nearest dollar, except where specified differently above. The total amount to be levied on any parcel will be rounded to an even number to accommodate collection on the property tax bill in two equal installments. Reserve Fund: In addition to the estimated annual maintenance expenditures and administrative costs, the 1972 Act provides for the annual collection of funds to be retained in a Reserve Fund. These funds are collected and retained for the purpose of funding the operation and maintenance of the improvements from the beginning of the fiscal year (July 1) until such time the assessment proceeds are received from the County which is generally in January or February (Operational Reserves). The funds may also be used to offset unforeseen maintenance expenditures (revenue deficits) as well as funds retained as surplus revenues from the previous fiscal year. The amount retained in the Reserve Fund typically should not exceed an amount greater than the operational reserve requirements described above. B. DISTRICT BUDGET This report has been prepared pursuant to the Landscaping and Lighting Act of 1972 (Part 2 of Division 15 of the Streets and Highways Code and Article XIIID, Section 4 of the California Constitution (Proposition 218). City of Palm Springs – Engineer’s Report Parkway Maintenance District No. 10, Zone 2, Mountain Gate II Subject Fiscal Year: 2023 / 2024 _________________________________________________________________________________________________ City of Palm Springs, Parkway Maintenance District No. 10, Zone 2 – Engineer’s Report Page 10 B. DISTRICT BUDGET PARKWAY MAINTENANCE DISTRICT NO. 10, ZONE 2 ("MOUNTAIN GATE II") (Formed in 2005) A.FY 21-22 Past Actual Costs vs. Assessments Summary Account Surplus from previous FY = $ (48,810) Starting Budget = $ 30,342 Actual Costs = $ (99,085) Account Surplus / Deficit = $ (117,554) Assessment = $ 35,360 Estimated Costs = $ (96,327) Estimated Account Surplus / Deficit = $ (178,521) B.FY 22-23 Current Estimated Annual Costs Landscape Services $ (68,422) Southern California Edison $ (730) Desert Water Agency $ (31,123) Incidentals $ - Reserve Fund $ - Administration $ (869) Estimated Annual Costs: $ (101,144) C.FY 23-24 Future Estimated Assessment Estimated Future Cost = $ (101,144) Estimated Current FY Account Surplus = $ (178,521) Estimated Future Surplus / Deficit = $ (279,665) D.FY 23-24 Future Assessment Analysis Change in Consumer Price Index (∆CP) = 3.823% Previous FY Maximum Allowable Assessment = $ 160,838 Maximum Allowable Assessment (Previous Max x ∆CPI) = $ 166,987 Proposed Assessment (PA) = →$ 166,986 (See Note 2) Total Equivalent Benefit Units (EBU = 175x1.0EBU + 21x1.1EBU) = 198.10 Assessment Ratel (PA ÷ 198.10 EBU, for 175 Parcels) = →$ 842.94 (Per Parcel) Cost per subset of 21 parcels (Assessment Rate x 1.1EBU) = →$ 927.23 (Per Parcel) E. Two Year History: Actual Costs vs. Assessments Fiscal Year: FY 20-21 FY 21-22 Actual Costs: ($48,810) ($99,085) Assessment $0 $30,342 F.Two Year History: Maximum Assessment Adjusted Max. Assessment FY 20-21 $143,910 Adjusted Max. Assessment FY 21-22 $149,103 Note: 1) CPI of "All Urban Consumers" for the Los Angeles-Orange-Riverside County, April CPI Value. 2) A reserve of $250,000 has been established to fund replacement of landscaping and irrigation improvements in the event of catastrophic damage due to wind, fire, or other events. City of Palm Springs – Engineer’s Report Parkway Maintenance District No. 10, Zone 2, Mountain Gate II Subject Fiscal Year: 2023 / 2024 _________________________________________________________________________________________________ City of Palm Springs, Parkway Maintenance District No. 10, Zone 2 – Engineer’s Report Page 11 APPENDIX A - DISTRICT DIAGRAM The parcels within the Palm Springs Parkway Maintenance District No. 10, Zone 2, (“Mountain Gate II”), are shown on the current Riverside County Assessor’s Parcel Map Book 669 Pages 63, 64 and 65. The County Assessor’s Parcel Map along with the Assessment Roll constitutes the District Assessment Diagram. A copy of the Parkway Maintenance District No. 10, Zone 2, boundary is shown on the following page. City of Palm Springs – Engineer’s Report Parkway Maintenance District No. 10, Zone 2, Mountain Gate II Subject Fiscal Year: 2023 / 2024 _________________________________________________________________________________________________ City of Palm Springs, Parkway Maintenance District No. 10, Zone 2 – Engineer’s Report Page 12 City of Palm Springs – Engineer’s Report Parkway Maintenance District No. 10, Zone 2, Mountain Gate II Subject Fiscal Year: 2023 / 2024 _________________________________________________________________________________________________ City of Palm Springs, Parkway Maintenance District No. 10, Zone 2 – Engineer’s Report Page 13 City of Palm Springs – Engineer’s Report Parkway Maintenance District No. 10, Zone 2, Mountain Gate II Subject Fiscal Year: 2023 / 2024 _________________________________________________________________________________________________ City of Palm Springs, Parkway Maintenance District No. 10, Zone 2 – Engineer’s Report Page 14 City of Palm Springs – Engineer’s Report Parkway Maintenance District No. 10, Zone 2, Mountain Gate II Subject Fiscal Year: 2023 / 2024 _________________________________________________________________________________________________ City of Palm Springs, Parkway Maintenance District No. 10, Zone 2 – Engineer’s Report Page 15 City of Palm Springs – Engineer’s Report Parkway Maintenance District No. 10, Zone 2, Mountain Gate II Subject Fiscal Year: 2023 / 2024 _________________________________________________________________________________________________ City of Palm Springs, Parkway Maintenance District No. 10, Zone 2 – Engineer’s Report Page 16 APPENDIX B - ASSESSMENT ROLL Parcel identification for each lot or parcel within the District shall be the parcel as shown on the Riverside County Secured Roll for the year in which this Report is prepared and reflective of the Assessor’s Parcel Map(s) associated with the Secured Roll. A listing of parcels proposed to be assessed within this District, along with the assessment amounts, is shown on the following table. City of Palm Springs – Engineer’s Report Parkway Maintenance District No. 10, Zone 2, Mountain Gate II ASSESSOR'S PARCEL NUMBER ASSESSMENT ASSESSOR'S PARCEL NUMBER ASSESSMENT 669-630-001 $842.94 669-630-027 $842.94 669-630-002 $842.94 669-630-028 $842.94 669-630-003 $842.94 669-630-029 $842.94 669-630-004 $842.94 669-630-030 $842.94 669-630-005 $842.94 669-630-031 $842.94 669-630-006 $842.94 669-630-032 $842.94 669-630-007 $842.94 669-630-033 $842.94 669-630-008 $842.94 669-630-034 $842.94 669-630-009 $842.94 669-630-035 $842.94 669-630-010 $842.94 669-630-036 $842.94 669-630-011 $842.94 669-630-037 $842.94 669-630-012 $842.94 669-630-038 $842.94 669-630-013 $842.94 669-630-039 $842.94 669-630-014 $842.94 669-630-040 $842.94 669-630-015 $842.94 669-630-041 $842.94 669-630-016 $842.94 669-630-042 $842.94 669-630-017 $842.94 669-630-043 $842.94 669-630-018 $842.94 669-630-044 $842.94 669-630-019 $842.94 669-630-045 $842.94 669-630-020 $842.94 669-630-046 $842.94 669-630-021 $842.94 669-630-047 $842.94 669-630-022 $842.94 669-630-048 $842.94 669-630-023 $842.94 669-630-049 $842.94 669-630-024 $842.94 669-630-050 $842.94 669-630-025 $842.94 669-630-051 $842.94 669-630-026 $842.94 669-630-052 $842.94 669-630-053 $842.94 669-640-021 $842.94 669-630-054 $842.94 669-640-022 $842.94 669-630-055 $842.94 669-640-023 $842.94 669-630-056 $842.94 669-640-024 $842.94 669-630-057 $842.94 669-640-025 $842.94 669-630-058 $842.94 669-640-026 $842.94 669-630-059 $842.94 669-640-027 $842.94 669-630-060 $842.94 669-640-028 $842.94 669-630-061 $842.94 669-640-029 $842.94 669-630-062 $842.94 669-640-030 $842.94 669-630-063 $842.94 669-640-031 $842.94 669-640-001 $842.94 669-640-032 $842.94 669-640-002 $842.94 669-640-033 $842.94 669-640-003 $842.94 669-640-034 $842.94 RIVERSIDE COUNTY ASSESSMENT ROLL PARKWAY MAINTENANCE DISTRICT NO. 10, ZONE 2 ("MOUNTAIN GATE II") City of Palm Springs, Parkway Maintenance District No. 10-2 - Engineer’s Report Page 17 City of Palm Springs – Engineer’s Report Parkway Maintenance District No. 10, Zone 2, Mountain Gate II ASSESSOR'S PARCEL NUMBER ASSESSMENT ASSESSOR'S PARCEL NUMBER ASSESSMENT 669-640-004 $842.94 669-640-035 $842.94 669-640-005 $842.94 669-640-036 $842.94 669-640-006 $842.94 669-640-037 $842.94 669-640-011 $842.94 669-640-038 $842.94 669-640-012 $842.94 669-640-039 $842.94 669-640-013 $842.94 669-640-040 $842.94 669-640-014 $842.94 669-640-041 $842.94 669-640-015 $842.94 669-640-042 $842.94 669-640-016 $842.94 669-640-043 $842.94 669-640-018 $842.94 669-640-044 $842.94 669-640-019 $842.94 669-640-045 $842.94 669-640-020 $842.94 669-640-046 $842.94 669-640-047 $842.94 669-650-043 $842.94 669-640-048 $842.94 669-650-044 $842.94 669-640-051 $842.94 669-650-045 $842.94 669-650-001 $842.94 669-650-046 $842.94 669-650-002 $842.94 669-650-047 $842.94 669-650-003 $842.94 669-650-048 $842.94 669-650-004 $842.94 669-650-049 $842.94 669-650-005 $842.94 669-650-050 $842.94 669-650-006 $842.94 669-650-051 $842.94 669-650-007 $842.94 669-650-052 $842.94 669-650-008 $842.94 669-650-053 $842.94 669-650-009 $842.94 669-650-054 $842.94 669-650-010 $842.94 669-650-055 $842.94 669-650-011 $842.94 669-650-056 $842.94 669-650-021 $842.94 669-650-057 $842.94 669-650-022 $842.94 669-650-058 $842.94 669-650-023 $842.94 669-650-059 $842.94 669-650-024 $842.94 669-650-060 $842.94 669-650-025 $842.94 669-650-061 $842.94 669-650-026 $842.94 669-650-062 $842.94 669-650-027 $842.94 669-650-063 $842.94 669-650-028 $842.94 669-650-064 $842.94 669-650-029 $842.94 669-650-065 $842.94 669-650-030 $842.94 669-650-066 $842.94 669-650-041 $842.94 669-650-067 $842.94 669-650-042 $842.94 669-650-068 $842.94 669-650-069 $842.94 669-650-071 $842.94 669-650-070 $842.94 669-650-072 $842.94 RIVERSIDE COUNTY ASSESSMENT ROLL PARKWAY MAINTENANCE DISTRICT NO. 10, ZONE 2 ("MOUNTAIN GATE II") City of Palm Springs, Parkway Maintenance District No. 10-2 - Engineer’s Report Page 18 City of Palm Springs – Engineer’s Report Parkway Maintenance District No. 10, Zone 2, Mountain Gate II ASSESSOR'S PARCEL NUMBER ASSESSMENT ASSESSOR'S PARCEL NUMBER ASSESSMENT 669-650-073 $842.94 669-630-067 $927.23 669-650-074 $842.94 669-630-068 $927.23 669-650-075 $842.94 669-630-069 $927.23 669-650-076 $842.94 669-650-012 $927.23 669-650-077 $842.94 669-650-013 $927.23 669-650-078 $842.94 669-650-014 $927.23 669-650-079 $842.94 669-650-015 $927.23 669-650-080 $842.94 669-650-016 $927.23 669-650-081 $842.94 669-650-031 $927.23 669-650-082 $842.94 669-650-032 $927.23 669-650-083 $842.94 669-650-033 $927.23 669-650-084 $842.94 669-650-034 $927.23 669-650-085 $842.94 669-650-035 $927.23 669-650-086 $842.94 669-650-036 $927.23 669-650-087 $842.94 669-650-037 $927.23 669-630-065 $927.23 669-650-038 $927.23 669-630-066 $927.23 669-650-039 $927.23 669-630-064 $927.23 669-650-040 $927.23 Total $166,986.33 FY 23-24 PARKWAY MAINTENANCE DISTRICT NO. 10, ZONE 2 ("MOUNTAIN GATE II") RIVERSIDE COUNTY ASSESSMENT ROLL City of Palm Springs, Parkway Maintenance District No. 10-2 - Engineer’s Report Page 19