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HomeMy WebLinkAbout21933 - RESOLUTIONS - 6/13/2007 RESOLUTION NO. 21933 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, EXPRESSING CONCERN OVER THE COACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT'S PROPOSED INCREASE IN THE MOSQUITO, FIRE ANT AND DISEASE ASSESSMENT FOR THE FISCAL YEAR 2007-08. WHEREAS, The Coachella Valley Mosquito and Vector Control District (District) was established in 1928 as an independent special district in Riverside County; and WHEREAS, the purpose of the District is to protect public health and reduce the risk of mosquito and other vector-borne disease and mosquito nuisances for all Coachella Valley residents; and WHEREAS, the District currently provides mosquito, eye gnat, roof rat, and other vector and disease control services throughout the Coachella Valley; and WHEREAS, the District's funding is generated by a percentage of the 1% property tax collected from Coachella Valley property owners; and ' WHEREAS, in Fiscal Year 2004-05, the District received $4,893,030 in revenues and reported expenditures of$4,633,265 resulting in a fund surplus of$259,765; and WHEREAS, in 2005, the District's Board of Trustees initiated proceedings to place an assessment on property throughout the District for the purpose of raising revenues related to mosquito, red imported fire ants, vector and disease controls services, as well as funding to supplement the related costs of equipment, capital improvements, services and facilities necessary and incidental to mosquito and vector control programs, and WHEREAS, the Mosquito, Fire Ant and Disease Control Assessment (Assessment), which was approved by property owners, established the maximum assessment rate of $16.00 per single family home per year; and WHEREAS, the Assessment may be increased each subsequent year by the Los Angeles-Riverside-Orange County Consumer Price Index (CPI) not to exceed 3% per year; and WHEREAS, in Fiscal Year 2005-06, the first year following property owner approval of the Assessment, the District reported revenues of $8,756,814 and expenditures totaling $7,264,894, resulting in a fund surplus of$1,491,920; and ' WHEREAS, the District ended Fiscal Year 2005-06 with a reserve fund balance of $11,861,235; and Resolution No. 21933 Page 2 WHEREAS, in Fiscal Year 2006-07, the District's Board of Trustees increased the , Assessment by 3% to $16.48 per residential unit to reflect the change in the consumer price index; and WHEREAS, from 2003 to 2006, the District's reserve fund has grown by 30% from $9,163,644 to $11,861,235; and WHEREAS, during the same period, most public agencies in California have experienced negative growth in their reserves due to increased costs and less revenues; and WHEREAS, the District's Board of Trustees is proposing to increase the Assessment by 3% to $16.96 per residential unit for Fiscal Year 2007-08; and WHEREAS, if approved, the new Assessment will generate an estimated $2.7 million in revenue to the District; and WHEREAS, the District is projecting a reserve fund balance in excess of $13,000,000 as of June 30, 2007; and WHEREAS, the passage of Proposition 218, The Right to Vote of Taxes Act, in November 1996, established new requirements for the imposition of new taxes, ' assessments, and property-related fees or charges, as well as for increasing of existing taxes, assessments, and property-related fees or charges; and WHEREAS, under Proposition 218, no assessment may be imposed which exceeds the reasonable cost of the proportional special benefit to the parcel; and WHEREAS, Proposition 218 further prohibits the collection of fees or charges based upon potential or future use; and WHEREAS, the District's Assessment appears to be generating more revenues than actual expenses; and WHEREAS, the District has ample reserves to cover any potential cost increase or unforeseen expense; and WHEREAS, the District may be violating the intent of Proposition 218 by assessing a fee against property that exceeds the actual costs of providing service to the properties within the District. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Palm Springs, California, does hereby express concern over the Coachella Valley Mosquito , and Vector Control District's proposed increase in the Mosquito, Fire Ant and Disease Assessment for the Fiscal Year 2007-08. Resolution No. 21933 Page 3 ' BE IT FURTHER RESOLVED, that the City Council of the City of Palm Springs, California, strongly encourages the Coachella Valley Mosquito and Vector Control District's Board of Trustees to consider other options, including the use of its reserve fund, which is estimated in excess of $13,000,000, instead of increasing the assessment on property owners to cover the costs related to mosquito, red imported fire ants, vector and disease controls services in the next fiscal year. ADOPTED THIS 13T" DAY OF JUNE, 2007, David H. Rea anager ATTEST: _ r /J9mes Thompson, City Clerk v ' CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. 21933 is a full, true, and correct copy, and was duly adopted at an adjourned regular meeting of the City Council of the City of Palm Springs on the 13rh day of June, 2007, by the following vote: AYES: Councilmember Foat, Councilmember McCulloch, and Mayor Pro Tern Pougnet. NOES: None. ABSENT: Councilmember Mills, and Mayor Oden. ABSTAIN: None. James Thompson, City Clerk ' City of Palm Springs, California