REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  July  18, 2017
CATEGORY:  Scheduled Hearings - Public Works-9.

SUBJECT:

County Service Areas – Annual Parcel Charge Reports

Supervisorial District No. :  All

DEPARTMENT CONTACT:  Pat Minturn, Public Works Director, (530) 225-5661

STAFF REPORT APPROVED BY:  Pat Minturn, Public Works Director

RECOMMENDATION

Conduct a public hearing and adopt a resolution which: (1) Confirms the Annual Parcel Charge Reports for the various County Service Areas in Shasta County in the same amount as currently charged; and (2) directs that the parcel charges be placed on the property tax bills for Fiscal Year 2017-18.

SUMMARY

A public hearing has been scheduled to consider the Annual Parcel Charge Reports for the various County Service Areas (CSAs).  These reports will be used to levy parcel charges on the Fiscal Year 2017/18 tax bills.

DISCUSSION

CSAs are formed to provide urban services in rural areas.  Each CSA is self-sufficient, funded through charges paid by the property owners within the CSA.  Revenues are derived from bi-monthly water and sewer bills, and from parcel charges.  Parcel charges are set annually by the Board.  All of the proposed parcel charges are the same as last year.

It is recommended that the Board convene a public hearing to receive input on the proposed parcel charges.  Public notice of the hearing was provided through a legal notice in the newspaper.  Written protests and objections, if any, will be presented at the hearing.  Following the public hearing, it is recommended that the Board adopt the attached resolution confirming the Annual Parcel Charge Reports.  Brief explanations of the proposed parcel charges are as follows:

CSA #2 – Sugarloaf:  A continuing charge of $60 on each of the 82 parcels is proposed to fund future capital improvements and emergency repairs.

CSA #6 – Jones Valley:  A parcel charge of $61 on each of the 512 parcels is proposed to repay a Farmers Home Administration loan.  Elk Trail is not subject to this charge.  For the Silverthorn Summer Homes Subdivision this parcel charge will be collected in six installments on their bi-monthly water bill.  A parcel charge of $60 on each of the unconnected parcels is proposed to compensate the CSA for standby costs.  This includes a standby charge for each lot in the Elk Trail subdivision which has not established service.

CSA #7 – Burney (SW):  A parcel charge of $43 on each of the 104 parcels is proposed to pay for operation, maintenance, repair and replacement of the storm drain and flood protection system.

CSA #14 – Belmont:  A parcel charge of $20 on each of the 30 parcels is proposed to pay for operation; maintenance, repairs and replacement of the storm drain system.  A parcel charge of $118 on each of 14 parcels in the Burney Meadows Subdivision is proposed to pay for the drainage system maintenance services within the subdivision.

CSA #15 – Street Lighting:  Parcel charges are proposed as shown in the table below, to pay for the operation; maintenance, repair and replacement of street lighting systems:

ALTERNATIVES

The Board may elect to modify the proposed parcel charges, or eliminate them altogether.  The proposed parcel charges have been designed to meet specific needs within each of the respective CSAs.  Where parcel charges fund debt service, reduced revenue may lead to loan defaults.  A few of the proposed parcel charges fund ongoing maintenance, especially electrical costs.  In these cases, reduced revenue would lead to corresponding reductions in service within these CSAs.

OTHER AGENCY INVOLVEMENT

The Auditor-Controller’s Office will include the adopted parcel charges on the FY 2017/18 tax bills.  County Counsel has approved the resolution as to form only.  The recommendation has been reviewed by the County Administrative Office.

FINANCING

Adequate funds are included in the Adopted FY 2017/18 budgets for the various CSAs.  The revenue will pay off debt and fund maintenance.  There is no General Fund impact.