REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF the FOLLOWING:
SAN BERNARDINO COUNTY
BOARD GOVERNED COUNTY SERVICE AREAS
AND RECORD OF ACTION
October 8, 2024
FROM
NOEL CASTILLO, Director, Department of Public Works - Special Districts
SUBJECT
Title
Various Actions Pertaining to Increased Property Related Service Charge for County Service Area 70, Zone R-34 Big Bear Rd
End
RECOMMENDATION(S)
Recommendation
1. Acting as the governing body of County Service Area 70, Zone R-34 Big Bear Rd:
a. Adopt the certified results of the mailed ballot property owner election held on July 19, 2024, regarding the proposed increase of an annual property related service charge from $100 per parcel to $231.04 per parcel, for ongoing operating and maintenance costs, with an annual inflationary increase of up to 3%, and $468.02 per parcel, for a 10-year period to fund repayment of a loan, with interest at the County’s Treasurer rate, to fund a Capital Improvement Project to repave West Villa Grove Avenue between Plumas Court and Villa Grove Avenue, for a total of $699.06 per parcel per year, effective 2025-26.
b. Adopt Resolution that:
i. Repeals portions of Resolution No. 94-3 initially establishing an annual property related service charge of $100 per parcel for road maintenance and snow removal services for County Service Area 70, Zone R-34 Big Bear Rd.
ii. Authorizes a new property related service charge of $699.06 per parcel per year, $231.04 for ongoing operating and maintenance costs, with an annual inflationary increase of up to 3%, and $468.02 for a 10-year period to fund repayment of a loan, with interest at the County’s Treasurer rate, for a Capital Improvement Project to repave West Villa Grove Avenue between Plumas Court and Villa Grove Avenue, effective 2025-26, for County Service Area 70, Zone R-34 Big Bear Rd.
c. Reaffirm that the Auditor-Controller/Treasurer/Tax Collector is directed to place the $699.06 per parcel service charge on the property tax roll beginning in 2025-26, subject to California State Board of Equalization approval, to fund road maintenance and snow removal services, and to fund a Capital Improvement Project to repave West Villa Grove Avenue between Plumas Court and Villa Grove Avenue, for County Service Area 70, Zone R-34 Big Bear Rd.
d. Approve the Capital Improvement Program - County Service Area 70, Zone R-34 Big Bear Rd Paving Project in the amount of $100,846.
e. Adopt Resolution that accepts a loan in the amount of $100,846 from the County Service Area Revolving Loan Fund and stating the necessity for borrowing funds in order to fund the County Service Area 70, Zone R-34 Big Bear Rd Paving Project, with the loan, including interest at the County’s Treasurer rate, being repaid within 10 years of disbursement (Four votes required).
f. Authorize the Auditor-Controller/Treasurer/Tax Collector to post 2024-25 budget adjustments, as indicated in the Financial Impact Section, for the County Service Area 70, Zone R-34 Big Bear Rd Paving Project (Four votes required).
2. Acting as the governing body of San Bernardino County:
a. Adopt Resolution approving a loan in the amount of $100,846 from the County Service Area Revolving Loan Fund for the County Service Area 70, Zone R-34 Big Bear Rd Paving Project, with the loan, including interest at the County’s Treasurer rate, being repaid within 10 years of disbursement.
b. Authorize the Auditor-Controller/Treasurer/Tax Collector to record the $100,846 loan from the County Service Area Revolving Loan Fund to County Service Area 70, Zone R-34 Big Bear Rd, if approved.
(Presenter: Noel Castillo, Director, 387-7906)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Ensure Development of a Well-Planned, Balanced, and Sustainable County.
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). All costs associated with the property related service charge increase of County Service Area 70, Zone R-34 Big Bear Rd. (District) will be paid by the property owners within the District. The District currently generates annual revenue of $2,600 (26 parcels at $100 per parcel) through the existing property related service charge. This revenue is currently used to fund road maintenance and snow removal services.
A loan from the County Service Area Revolving Loan Fund in the amount of $100,846 is needed to fund the County Service Area 70, Zone R-34 (Big Bear) Road Paving Project (Project). The District will repay this loan, including interest, at the County Treasurer rate, with revenue from the approved per parcel service charge by the property owners residing in the District. The new service charge will generate $18,175.56 (26 parcels at $699.06 per parcel), effective 2025-26, for a period of 10 years.
This item also seeks approval for the Auditor-Controller/Treasurer/Tax Collector to post the following 2024-25 budget adjustments to proceed with the Project:
|
Fund Center |
Commitment Item |
Description |
Action |
Amount |
|
5380001684 |
40909985 |
Long-Term Debt Proceeds |
Increase |
$100,846 |
|
5380001684 |
54104010 |
Improvements to Land |
Increase |
$100,846 |
BACKGROUND INFORMATION
In 1994, the District was formed to provide road maintenance and snow removal services for approximately 1,026 feet of roadway of West Villa Grove Avenue in the Big Bear area. When the District was formed, a $100 per parcel annual service charge was established. However, there was no inflationary factor built into the service charge and therefore the $100 annual charge has remained unchanged. Had an inflationary factor of 3% been included since 1994, the per parcel service charge would now be approximately $236 per year. With the annual cost of inflation over the past 30 years, the lack of corresponding increases in revenue has resulted in reduced services being provided to the District. Without immediate action to increase the annual service charge, the District’s long-term sustainability and solvency are threatened.
Property owners residing in the District were contacted via letter on May 1, 2021, January 13, 2023, December 13, 2023 by the Department of Public Works - Special Districts (Department) to discuss the levels of service in the District. Town Hall Meetings were held on February 23, 2023 and January 18, 2024. Following meetings, information letters, and public surveys, the Department mailed a written notice of a public hearing about proposed increases to the property-related service charge. The written notice, mailed on February 29, 2024, to the record owner of each affected parcel, in compliance with Proposition 218 requirements. The notice included the amount of the charge proposed to be imposed upon each parcel; basis upon which the amount of the proposed charge was calculated; reason for the charge; and notice of the May 7, 2024, public hearing date, time, and location on the proposed increase service charge.
On May 7, 2024 (Item No. 63), the Board of Supervisors (Board) conducted the public hearing for the proposed increased property related service charge to hear and consider all protests against the proposed increase. No protests were received at the protest hearing. Therefore, at the conclusion of the public hearing, the Board determined that a majority protest of property owners did not exist and thus adopted Resolution No. 2024-50 authorizing a mailed ballot election of property owners, pursuant to the requirements of Proposition 218 and the California Constitution, Article XIIID, Section 6(c), to establish the service charge revision to $699.02 per parcel effective 2025-26. The Resolution established June 21, 2024, or any day thereafter, as the mailed ballot election date to be voted on by property owners within the District.
The Department is returning to the Board to adopt the certified election results for the District’s proposed service charge. The ballots were mailed by an independent election provider on June 5, 2024, and received by July 19, 2024 (the official election date). The proposed property related service charge was approved by a majority vote (9 Approve - 64.29%, 5 Reject - 35.71%) of the property owners in the District.
Approval of this item will adopt a Resolution repealing portions of Resolution No. 94-3, related to the annual service charge of $100 per parcel, and establish a revised service charge of $699.02 per parcel per year, effective 2025-26, to fund the Project. Pursuant to Board action dated May 7, 2024 (Item No. 63), the Auditor-Controller/Treasurer/Tax Collector is directed to place this service charge of $699.02 per parcel on the property tax roll beginning in 2025-26, subject to approval from the California State Board of Equalization and this item reaffirms that action. Approval of this item will also adopt a resolution accepting a loan and stating the necessity for borrowing for the purpose of funding the Project.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by Auditor-Controller/Treasurer/Tax Collector (Charlene Huang, Auditor-Controller Manager, 382-7022 and Franciliza Zyss, Chief Deputy, 382-3176) on September 10, 2024; County Counsel (Aaron Gest, Deputy County Counsel, 387-5455) on September 10, 2024; Finance (Jessica Trillo, Administrative Analyst, 387-4222) on September 18, 2024; and County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer, 387-5423) on September 23, 2024.