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Landscape Maintenance District (LMD) 2
Frequently Asked Questions
- What is a Landscape Maintenance District (LMD)?
- How many Landscape Maintenance Districts are there?
- Which Landscape Maintenance District am I in?
- Who started the Landscape Maintenance Districts in the city and why?
- How are the Landscape Maintenance Districts funded?
- Why are there so many Landscape Maintenance Districts?
- Is each Landscape Maintenance District maintained identically?
- What do my Landscape Maintenance District assessments cover?
- Why has the maintenance on some Landscape Maintenance Districts decreased lately?
- What has the city done to try and keep from raising rates?
- What are the main cost increases that affect services?
- Why has the city decreased service levels instead of raising the assessments rates to meet current costs?
- Why doesn't the city use General Fund revenue to supplement the Landscape Maintenance Districts?
- If service levels in my Landscape Maintenance District have been reduced, are the recent changes in service levels temporary or permanent?
- I was not in my home when the Landscape Maintenance District was approved. Why do I have to pay the Landscape Maintenance District assessments?
- How are the Landscape Maintenance Districts administered?
- What is Proposition 218 and why does it impact Landscape Maintenance Districts?
- How does a Proposition 218 assessment ballot procedure work?
- If I have more questions about the maintenance in my Landscape Maintenance District, who do I talk to?
- If I have more questions about the Landscape Maintenance District rates or the upcoming assessment ballot procedure, who do I talk to?
- Why hasn't the city increased Landscape Maintenance District fees since the passage of Proposition 218 over 18 years ago?
- When will there be a vote to increase the Landscape Maintenance District fees?
- If the Landscape Maintenance District assessment rates are not increased, what will happen to our public parks and landscapes?
- I am paying a lot of taxes in Rancho Cucamonga and so are my neighbors. How is it that the city cannot afford to maintain the landscapes at a higher level of service?
- What are the differences in service levels? Or what differences can the residents expect to see between level A and C?
- Have we reduced the service level in the parks?
- If I live within one of the Landscape Maintenance Districts that is proposed for a Proposition 218 assessment ballot procedure in summer of 2011, how will I find out more information about the proposed election?
- How much is it costing the Landscape Maintenance Districts for the Proposition 218 assessment ballot procedure?
- What is a Landscape Maintenance District (LMD)?
- An LMD is not a separate entity but is
a financing vehicle by which territory, as determined by the legislative
body, specially benefited by certain improvements such as parks,
playgrounds, landscapes, sidewalks, trees, etc. is assessed to pay the
costs of the construction and/or maintenance of such improvements. Each LMD is created through formation
proceedings (also known as a vote of the affected property owners) undertaken
by the legislative body pursuant to the Landscaping and Lighting Act of
1972 (the “1972 Act”), usually at the time a residential or commercial
project is first developed, to allow the local agency to levy an annual
assessment for the maintenance of the community improvements, based on special
benefit directly or indirectly, to the property owners within the LMD. Annual assessments are paid as part of
a line-item on individual property tax bills.
- How many Landscape Maintenance Districts are there?
- The City of Rancho Cucamonga has eleven (11)
different Landscape Maintenance Districts spread throughout the entire
City boundary.
- Which Landscape Maintenance District am I in?
- Please click here to go to an interactive map where you
can find specific locations and determine which Landscape Maintenance
District those locations are within.
- Who started the Landscape Maintenance Districts in the city and why?
- The LMD’s were an integral part of the
City’s early years of development, after incorporation, for the purpose
of ensuring that common landscape areas would remain beautified as
property changed hands; enhance property values; and create an
accountability structure for maintaining the common landscape areas that
did not rely on the efforts of individual residents for maintenance. Most of the LMD’s were initiated by the
original property owner(s) who developed the [then] vacant land, in
conjunction with the City of Rancho
Cucamonga, as part of the development process. This system continues to the present
day, even as new housing tracts are developed. Those new tracts are either included
within a new LMD, or if appropriate, annexed to an existing LMD.
- How are the Landscape Maintenance Districts funded?
- The LMD’s are governed by the legal
requirements of Proposition 218 (Article XIIID of the California
Constitution) and the provisions of the 1972 Act. Every year, the City, in its role
administering each of the LMD’s, levies an assessment on each parcel within
each LMD, in accordance with existing law, based upon the special benefit
that each such parcel receives from the improvements to be maintained
from the proceeds of such assessments.
The revenues collected for each LMD are intended for use within
the boundaries of the LMD from which it was collected. Ever since Proposition 218 was approved
by the voters in 1996, increased assessment rates cannot be levied
without submitting the proposed increases to the property owners within
the affected LMD in an assessment ballot procedure. Except for those few LMD’s whose
assessment language provides for a consumer price index escalator, most
of the LMD’s in the City have not had their rates increased since 1993,
several years prior to Proposition 218.
- Why are there so many Landscape Maintenance Districts?
- Each LMD contains improvements that
are of specific benefit to that community [neighborhood] included in the
boundaries of such LMD. As each
community developed, a new LMD was created to maintain the landscaping
improvements that specially benefit such community. Because of the varying community
designs, different LMD’s can include any or all of the following: landscaping,
paseos, lighting, parks, greenbelts and other improvements in the public
right-of-way. The diversity of
improvements among LMD’s, and by extension the varying community designs,
provides home buyers with a multitude of choices based on their needs and
financial abilities.
- Is each Landscape Maintenance District maintained identically?
- Yes, until recently based on revenue
and costs. Although the landscape
design/appearance may vary considerably from one LMD to another, and some
areas are maintained by different landscape contractors, the contract
maintenance specifications are basically the same. The City has graduated levels of
maintenance, from A (highest) through F (lowest). The variation between each level is
based on frequency of maintenance.
Within the total assessment collected on a yearly basis within
each LMD, the City strives to maintain the landscape improvements at the
highest level of maintenance possible within the approved revenue
constraints. In the past,
virtually all LMD’s were maintained at an A or B level. Maintenance levels are determined by
identifying anticipated revenue and the maximum level of service that can
be afforded within the revenue collected.
Recently, some LMD’s have been reduced to a C level of maintenance
based on revenue collected.
- What do my Landscape Maintenance District assessments cover?
- Depending upon the improvements within
a particular LMD, assessments will pay for water, electric and other
utilities, paint, fertilizer, plant material, sand and soils, irrigation
repair, pest control, small equipment and hand tools, electrical/plumbing
parts, playground parts, janitorial supplies, equipment rental,
equipment/vehicle maintenance, landscape maintenance contracts, tree maintenance
contracts, mowing contracts, backflow testing, sport field maintenance,
trail maintenance and repair, vandalism and graffiti repair, security and
site lighting repair, and a portion of City staff salaries/benefits
(admin & field staff).
- Why has the maintenance on some Landscape Maintenance Districts decreased lately?
- As noted previously, due to the voter
approval requirements of Proposition 218, assessment rates within most of
the LMD’s have remained static since 1993, almost 18 years. This has been accomplished through improved
efficiencies in irrigation, lower maintenance vegetation and improved
efficiencies in contract and in-house maintenance. Recently, due to unforeseen and
dramatic increases in water rates, as well as increasing delinquencies
due to the crash of the housing market, several of the LMD’s have been
faced with insufficient revenue to continue to maintain the improvements
for such LMD’s at their prior maintenance levels. Accordingly, just like individual
property owners, the City must live within its means and each LMD must
cover all its expenses without outside assistance. Thus, the maintenance levels have been
decreased to match available revenue until the property owners within
each LMD have an opportunity, through an assessment ballot procedure, to express
their support for or opposition to either increase assessments and return
to a higher level of maintenance, or choose to keep the current
assessment rate and thus a correspondingly lower level of maintenance. The City has graduated levels of
maintenance, from A through C. The
variation between each level is based on frequency of maintenance.
- What has the city done to try and keep from raising rates?
- City wide, all landscaped parkways,
median islands, and street trees are contract maintained at competitively
bid prices that are reviewed and re-bid on a regular basis; park
maintenance is performed with a combination of full and part time City
staff, contract maintenance staff, and supervised Work Release personnel
(at no pay); volunteers and people with disabilities are utilized where
opportunities arise. This blending
of labor resources keeps costs minimized; low-cost high-quality parts and
materials are sought and utilized and conservation measures for the use
of water and electric utilities are continuously being implemented.
- What are the main cost increases that affect services?
- Water and electric utilities are
examples of annual cost increases over which the City has no control,
because the City does not provide either water or electric service to
residential customers. Water is
provided by the Cucamonga Valley Water District (CCWD), a legally
separate entity independent from the City of Rancho Cucamonga. Electricity for the LMD is provided
by Southern California Edison. In May 1, 2011 CVWD eliminated the "Interruptible Government" rate class and from that point forward all water service has been on a tiered rates. The impact of this change was estimated to be an effective increase of approximately 26% based on historical consumption levels citywide. CVWD has another rate increase of approximately 6% scheduled with an effective date of May 1, 2011. Since 1993 water costs have increased 96% from a flat rate of 0.76 cents per billing unit to a tiered rate structure ranging from $1.40 to $2.00 per unit. Electricity increases from Southern
California Edison happen on a regular basis as well. In addition, the cost of parts and
materials for LMD 2 increases annually. Finally, with the collapse of the
residential housing market, increasing numbers of foreclosed homes are
coming on to the market. In many
instances, these properties have not paid their property taxes and until
the property sells, the LMD must absorb the loss of the assessment
revenue accordingly. Property tax
delinquencies have increased in the LMD over the last five years. If you have more specific questions on
delinquencies within your LMD, please call GIS/Special
Districts Division at 909-477-2700, ext 2575.
- Why has the city decreased service levels instead of raising the assessments rates to meet current costs?
- Under Proposition 218, the “Right to Vote on Taxes Act,”
passed by California
voters in 1996, the City is forbidden for any reason from raising
assessment rates without conducting an assessment ballot procedure within
the affected landscape maintenance district. Because the City cannot spend beyond
the revenues collected within each LMD on an annual basis, the only
available option is to reduce service levels.
- Why doesn't the city use General Fund revenue to supplement the Landscape Maintenance Districts?
- Each of the LMD’s was formed as an
autonomous self-supporting financing vehicle. Assessment revenue collected within
each LMD may only be used to pay for the cost of maintenance of those
improvements that specially benefit the properties within the boundaries
of that LMD. The City’s General
Fund revenue is used for public safety services, community services,
public works and a variety of other services, and it would not be
fiscally responsible to decrease General Fund revenue for those other
services to supplement the LMD’s. If
the General Fund were to assist the LMD’s, it could potentially be liable
for hundreds of thousands of dollars or more on a city-wide basis, and
this would be revenue that would otherwise go for police services,
library services, animal care services, senior services, community
recreation services and all the other General Fund services the City
provides.
- If service levels in my Landscape Maintenance District have been reduced, are the recent changes in service levels temporary or permanent?
- Temporary. As noted previously, the current service
level changes are intended to be temporary until the property owners
within each particular LMD have an opportunity, through an assessment
ballot proceeding, to either
increase assessments and return to a higher level of maintenance, or
choose to keep the current assessment rate and thus a correspondingly
lower level of maintenance. The
City is sensitive to the fact that at the present time, with the economy,
rising fuel and water costs, and high unemployment, this is a very
difficult environment in which to ask the property owners to support an
assessment increase. Temporarily
lowering the service levels to match revenue collected will allow for a
bridge to better economic conditions when a potential assessment increase
is perhaps more feasible for property owners.
- I was not in my home when the Landscape Maintenance District was approved. Why do I have to pay the Landscape Maintenance District assessments?
- Upon approval by the original property
owners at the time of the LMD formation, the assessments become attached
to the property (secured) for the life of the LMD, similar to the manner
in which homeowners association dues are the responsibility of each owner
in an homeowners association, whether you owned property when the HOA was
formed or not.
- How are the Landscape Maintenance Districts administered?
- Each LMD is administered by the GIS/Special Districts Division. Staff is responsible for ensuring that
all parcels within each LMD are accurately assessed to reflect the
special benefit received by such parcels from the improvements for such
LMD, placed on the tax roll annually, the revenues received are only
expended for the improvements that specially benefit the parcels within
the respective LMD and as needed, that notices of delinquency are sent to
property owners within the respective LMD.
- What is Proposition 218 and why does it impact Landscape Maintenance Districts?
- Proposition 218 is the “Right to Vote
on Taxes Act” passed by California
voters in November 1996. It
impacts the LMD’s because the City cannot increase assessment rates for
LMD’s without submitting the proposed increase in assessments to the
owners of property within the LMD to permit such owners to express their
support for, or opposition to, the proposed increase in the assessments
applicable to their properties.
- How does a Proposition 218 assessment ballot procedure work?
- The City is required to submit all
proposed assessment increases to the property owners within the affected
LMD in an assessment ballot procedure.
The City will be required to mail individual notices, together
with assessment ballots, to property owners within the LMD. Upon receipt of the notice and
assessment ballot, each property owner may, by completing and returning
such owner’s assessment ballot, express such owner’s support for or
opposition to the proposed increase in the assessment on such owner’s
property. Each assessment ballot
completed by the applicable property owner and timely returned to the
City is weighted according to the proposed increase in the assessment to
be levied on the property. For
example, if the proposed increase in the assessment for the property
owned by Mr. Jones is $10 annually and the proposed increase in the
assessment for the property owned by Mr. Smith is $20 annually, Mr.
Smith’s assessment ballot will be weighted twice as much as Mr. Jones’
assessment ballot. The assessment
increase will be authorized to be levied unless assessment ballots in
opposition to the increase in the assessments that are timely received by
the City outweigh the assessment ballots in support of the increase in
the assessments that are timely received by the City.
- If I have more questions about the maintenance in my Landscape Maintenance District, who do I talk to?
- The Public Works Services Department
is charged with landscape maintenance throughout the City - contact the
Department at (909) 477-2730.
- If I have more questions about the Landscape Maintenance District rates or the upcoming assessment ballot procedure, who do I talk to?
- The GIS/Special Districts Division is
responsible for the administration of the assessments within each
LMD. You should contact Ingrid
Bruce, GIS/Special Districts Manager at (909) 477-2700, ext 2575.
- Why hasn't the city increased Landscape Maintenance District fees since the passage of Proposition 218 over 18 years ago?
- In many cases, a rate increase was not
necessary previously. Through
improved efficiencies, the City was able to maximize its stewardship of
the LMD’s and stretch the assessment revenue for over 16 years without an
increase. Proposition 218, the “Right to Vote on Taxes Act”,
prevents assessment rate increases without approval through an assessment
ballot procedure and was approved by a majority of California voters in 1996. In addition, due to the requirements of
Proposition 218, the mail assessment ballot process required for an
assessment rate increase takes approximately six (6) to nine (9) months
to complete and thus is not a process undertaken lightly, or without
considerable need.
- When will there be a vote to increase the Landscape Maintenance District fees?
- Each of the LMD's are differently situated in terms of delinquency rates, total improvements, cost to maintain, use of water and reserves. LMD 2 will be going to an assessment ballot procedure in the Summer of 2011. At the present time, no other LMD is scheduled for assessment rate increases until 2012 at the earliest.
- If the Landscape Maintenance District assessment rates are not increased, what will happen to our public parks and landscapes?
- The level of service will be determined based on the revenue collected. Examples of changes in service levels within a LMD based on revenue collected, could include reductions in how often the landscaping will be trimmed, mowed, edged and fertilized. Trash, weeds and debris will accumulate in increased quantities and pest control will be reduced.
- I am paying a lot of taxes in Rancho Cucamonga and so are my neighbors. How is it that the city cannot afford to maintain the landscapes at a higher level of service?
- As noted previously, the revenues
collected within each LMD may only be spent on the costs of construction
or maintenance of improvements that specially benefit the properties within
that LMD. Thus, revenues collected
in one LMD may never be used to subsidize the costs of the construction
or maintenance of improvements that specially benefit only the properties
within another LMD. As a post-Proposition 13 entity, the City of Rancho Cucamonga is a
low-property tax city and receives only a few million dollars in property taxes
city-wide on an annual basis. For
comparison, the City of Rancho Cucamonga receives 4 cents on each property tax
dollar paid, compared to many other pre-Proposition 13 cities (for example
Ontario or Upland) that receive 30 cents or more on each property tax dollar
paid. This property tax revenue, along
with the sales taxes, transient occupancy taxes (hotel tax), franchise fees and
other major revenue sources go into the City’s General Fund to provide police
services, library services, senior services, animal care services, community
recreation services and the many other municipal services provided by the City
of Rancho Cucamonga. The vast majority
of property taxes (over 90%) paid by residents within the City go to many other taxing entities including multiple
school districts, various special districts, San Bernardino County and the
State of California.
- What are the differences in service levels? Or what differences can the residents expect to see between level A and C?
- Please click here to see the Schedule A-F
Level, Frequency of Operations.
- Have we reduced the service level in the parks?
- No.
Because of the heavy public use of City parks, and the potential
for reduced maintenance to create health and safety issues, the level of
maintenance of the parks will remain at the same level it has been for
many years, at a B level.
- If I live within one of the Landscape Maintenance Districts that is proposed for a Proposition 218 assessment ballot procedure in summer of 2011, how will I find out more information about the proposed election?
- The City will be mailing out more information in the summer of 2011, and holding community meetings with each LMD. Additionally, the City will be sending notices of a public hearing and assessment ballot proceeding tot the owner of each parcel within an LMD for which the assessments are proposed to be increased. these materials must be mailed at least 45 days prior to the date of the public hearing and the date on which all completed assessment ballots must be received by the City. More information will also be available on the City's website, under the GIS/Special District's portion here.
- How much is it costing the Landscape Maintenance Districts for the Proposition 218 assessment ballot procedure?
- LMD 4, 6 & 8 had a cumulative cost of $42,000.00. LMD 6 re-vote cost $7,750.00 and LMD 2 is expected to cost $17,000.00. These costs are paid directly to NBS Governement Finance Group, Assessment Engineers to prepare the Engineer's Report including description of improvements, plans and specifications, cost estimates, assessment methodology, assessment roll and diagram, legal notices and ballots as required for compliance with the 1972 Act and Proposition 218, ballot tabulation, diagram recordation and levy calculations.
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