Title
Adopt Two Resolutions: 1) Accept and Authorize the City Manager to Take All Actions in Conformance with the Engineer’s Report for Fiscal Year 2025-2026 for the Heron Bay Maintenance Assessment District; Assessment District No. 96-3; and 2) Order the Levy and Collection of Assessments Within the Heron Bay Maintenance Assessment District; Assessment District No 96-3 for Fiscal Year 2025-2026
Staffreport
COUNCIL PRIORITY
• Infrastructure
• Sustainability & Resiliency
• Fiscal Sustainability and Transparency
SUMMARY
The Heron Bay Maintenance Assessment District (District) provides funding for the on-going maintenance of public facilities at the Heron Bay development and the shoreline area. The Annual Engineer's Report summarizes the expenses for the previous fiscal year and recommends assessment amounts for the upcoming fiscal year to continue funding the District. The proposed assessment for Fiscal Year (FY) 2025-2026 is 100% of the maximum allowed by the District including an additional assessment for the reserve fund.
RECOMMENDATIONS
Staff recommends adopting resolutions to:
• Accept the Annual Engineer's Report for FY 2025-2026; and
• Order the levy and collection of assessments for the Heron Bay Maintenance Assessment District, Assessment District No. 96-3.
BACKGROUND
At its regular meeting on June 17, 1996, the City Council adopted Resolution No. 96-118 establishing the Heron Bay Maintenance Assessment District (District) and subsequently approving a yearly assessment and levy. The District provides funding for the on-going maintenance of certain public facilities constructed as part of the Heron Bay development, including landscaping, storm water facilities, marshlands, and trail areas at the westerly end of Lewelling Boulevard.
Willdan Financial Services (Willdan) is currently retained as the Engineer-of-Work and has prepared the Annual Engineer's Report for FY 2025-2026 as well as the associated Assessment Roll for FY 2025-2026. A copy of the Engineer's Report is attached to the Resolution accepting the Engineer's Report and a copy of the Assessment Roll is attached to the Resolution ordering the levy and collection of assessments.
Analysis
Services to the District are provided by the City of San Leandro’s Public Works and Police Departments; the County of Alameda Public Works Agency; outside consultants; and outside contractors. The services cover maintenance of the facilities, monitoring of the marshland to confirm its health, feral animal removal, capital improvements, and administration. The cost of services for FY 2025-2026 is estimated at $603,980, which includes two capital improvement projects. The first project would hire a consultant to seek and write grants for the funding of the construction of the Long Beach Restoration Project. The second project would purchase and install rip-rap along the shoreline of the Heron Bay maintenance area to stabilize the shoreline trail after storm damage sustained in December 2024 and to prevent future erosion from high tide due to sea-level rise. Rising maintenance costs and aging facilities needing repairs requires that the regular assessment be set at the maximum amount allowed. In addition, as allowed, the maximum assessment will be increased by two percent (2%) to account for annual increases in the costs of maintenance.
In addition, the District’s rules require that a minimum of $300,000 reserve balance be maintained for capital improvement projects including unexpected or emergency repairs and budget overages. The District’s fund balance at the end of FY 2024-2025 is estimated to be $219,940. Because the estimated balance is less than the minimum, the maximum allowed reserve fund assessment has been added to replenish the fund. However, unlike the regular assessment, the additional reserve fund assessment does not increase annually and will remain flat year over year. For this reason, the percentage change of the total assessment compared to the previous year is slightly lower than 2%.
Assessing the properties at the maximum allowed by the District’s rules will fund the current maintenance and capital improvement needs of the District, reduce the impacts of rising costs, and help replenish the reserve fund balance.
Fund Balance end of FY 2024-2025 estimate $219,940
District Costs FY 2025-2026 estimate ($603,980)
FY 2024-2025 Assessments $511,059
Interest Income FY 2023-2024 estimate $2,199
Reserve Fund Balance FY 2025-2026 estimate $129,218
The Annual Engineer's Report includes the following:
• Detailed Descriptions for improvements maintained using District Funds
• District Budget using estimated costs for FY 2025-2026
• Descriptions for Method of Apportionment, Annual Assessment Increases, and Maximum annual assessments
• Assessment Diagram for District
• Assessment Roll identifying property assessed and amount of the assessment.
The maximum recommended assessments and annual adjustments are as follows:
FY 2025-2026 FY 2025-2026
FY 2024-2025 Estimated Annual Proposed
Housing Type and Assessment Levy at Maximum Assessment
Number of Units (includes reserve fund assessment)
451 Single-Family Units $397,601 $404,601 $404,601
178 Motor Court Units $104,614 $106,458 $106,458
Total Assessments $502,216 $511,059 $511,059
Individual assessments will be $897.12 for single family units and $598.08 for motor court units, approximately a 1.8% increase from the previous year.
Current Agency Policies
• Maintain and enhance San Leandro’s infrastructure
• Place San Leandro on a firm foundation for long-term fiscal sustainability
Previous Actions
• On July 17, 1996, by Resolution No. 96-118, the City Council established the Heron Bay Maintenance Assessment District.
• On July 6, 2021, by Resolution Nos. 2021-107 and 2021-108, the City Council accepted the Engineer’s Report and ordered the levy and collection of the assessment for Fiscal Year 2021-2022.
• On July 5, 2022, by Resolution Nos. 2022-114 and 2022-115, the City Council accepted the Engineer’s Report and ordered the levy and collection of the assessment for Fiscal Year 2022-2023.
• On June 20, 2023, by Resolution Nos. 2023-090 and 2023-091, the City Council accepted the Engineer’s Report and ordered the levy and collection of the assessment for Fiscal Year 2023-2024.
• On July 1, 2024, by Resolution Nos. 2024-079 and 2024-080, the City Council accepted the Engineer’s Report and ordered the levy and collection of the assessment for Fiscal Year 2024-2025.
Financial Impacts
There is no financial impact to the Fiscal Year 2025-2026 General Fund budget as the proposed levy, collection of the annual assessments, and reserve funds, support the activities of the Heron Bay Maintenance Assessment District.
All administrative and maintenance costs associated with the District are included in the proposed assessments.
Attachments
• Attachment A: Resolution to Accept the Engineer's Report for Fiscal Year 2025-2026 for the Heron Bay Maintenance Assessment District, Assessment District No. 96-3
• Attachment B: Resolution to Order the Levy and Collection of Assessments Within the Heron Bay Maintenance Assessment District, Assessment District No. 96-3 for Fiscal Year 2025-2026
• Attachment C: Engineer’s Report
• Attachment D: Preliminary Assessment Roll
PREPARED BY: Dane Rodgers, Senior Engineer, Public Works Department - Engineering Division