Title
HEARING - Department of Transportation, Maintenance and Operations Division, recommending the Board approve and authorize the Chair to sign Resolution 217-2024 setting for election a measure to consider a special tax increase to provide road improvement and maintenance and street lighting services in the Texas Hill Road Zone of Benefit 98112 within County Service Area 9; noting that the measure will be submitted to the zone electorate on the ballots distributed for the special election to be held May 6, 2025. (District 3)
FUNDING: County Service Area Zone of Benefit Special Taxes (100%).
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DISCUSSION / BACKGROUND
On October 16, 1984, the Board of Supervisors formed the Texas Hill Road Zone of Benefit No. 98112 (Zone) by Resolution 326-84 for the purpose of providing road improvement and maintenance services.
On November 30, 2004, the Board authorized the addition of street lighting services by Resolution 347-2004.
The Policy and Procedure Guidelines for Creation and Administration of Zones of Benefit within a County Service Area (Guidelines), amended version adopted June 2, 1987, provided for the zone advisory to make recommendations regarding the level of the annual assessments to be placed on the tax roll. Assessments were set annually by resolution of the Board, as allowed under County Service Area laws at the time. On September 10, 2024 (Legistar File 24-0845, Item 14) the Guidelines were amended for, among other things, consistency with current state laws and County practices regarding benefit assessments and special taxes.
Prior to November 6, 1996, the effective date of Articles XIIIC and XIIID of the California state constitution also known as Proposition 218, the zone of benefit advisory committee recommended an assessment/service charge to fund zone operations at $250.00 per parcel.
On August 29, 2006, a mailed ballot election was conducted at the request of the Texas Hill Road Zone Advisory Committee. Measure D was presented to the electorate of the zone and passed with the required two-thirds majority approval. An annual special tax of $350.00 with annual adjustments tied to the Engineering News Record Construction Cost Index on each parcel of real property within the zone replaced the benefit assessment and has been collected annually since fiscal year (FY) 2007/2008.
At the October 1, 2024, Advisory Committee Meeting, the Texas Hill advisory committee determined that the existing $419.52 annual special tax amount per parcel is not sufficient to provide the level of maintenance services desired by the residents and property owners in the zone. The committee and residents recommend the County conduct an election for the registered voters in the zone to consider an increase of $200.00 annually to the per parcel special tax, and continuing annual adjustments tied to the Engineering News Record Construction Cost Index. If approved by the electorate, the initial increase would result in an annual special tax amount of $619.52 in FY 2025/2026 with annual adjustments continuing in FY 2026/2027.
The zone committee provided the meeting notice and agenda, and the minutes of the October 1, 2024 meeting, which reflect the recommendation for the ballot measure.
The Registrar of Voters has determined there are one hundred eighty-four (184) voters registered within the Texas Hill Road Zone boundaries. Upon Board approval of the resolution setting the measure for election, the measure will be included on the ballots distributed to the zone electorate for a special election on May 6, 2025.
ALTERNATIVES
The Board may choose not to approve the Resolution setting the measure for election. While there is no guarantee the measure will pass, without the election there is no opportunity for the voters in the zone to consider the measure to increase funding for zone activities.
PRIOR BOARD ACTION
N/A
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel
Registrar of Voters
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
There are no impacts to Net County Costs or other County resources. The estimated cost for conducting the election is approximately $1,800.00. Actual costs will be determined on a time and materials basis and will be paid from the zone funds. There are one hundred nine (109) parcels in the Texas Hill Road Zone of Benefit, each subject to the current special tax amount of $419.52 annually, for total zone revenue of $45,727.68. Should the measure receive the required two-thirds majority votes in favor of the increase, the annual special tax of $619.52 per parcel will result in an annual revenue of $67,527.68, an increase of $21,800.00 annually for zone operations.
Should the measure fail to receive the two-thirds majority vote, the special tax will not be increased, but will continue to be collected at $419.52 per parcel with annual adjustments tied to the Engineering New Record Construction Cost Index, and annual revenue to the zone remaining at $45,727.68.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) The Clerk of the Board will obtain the Chair’s signature on one (1) original of the Resolution.
2) The Clerk of the Board will provide one certified copy of the Resolution to the Department of Transportation, attention Zone of Benefit for further processing.
STRATEGIC PLAN COMPONENT
Strategic Focus Area
Priority: N/A
Action Item: N/A
CONTACT
Rafael Martinez, Director
Department of Transportation