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HomeMy WebLinkAbout1994-08-23 - AGENDA REPORTS - LACO LIBRARY CMTY FACILITIESNEW BUSINESS DATE: SUBJECT: DEPARTMENT: BACKGROUND AGENDA REPORT August 23, 1994 ity Manage',X'p-proval Item to be presented by: Rick Putn �- Los Angeles County Library Community Facilities District Parks, Recreation and Community Services As a result of the State's budget crisis, the Los Angeles County Library District has suffered severe service reductions over the past two years. In an effort to develop and implement a long- term permanent funding solution to provide supplemental financing for library services, the Los Angeles County Library District has submitted a proposal to the Board of Supervisors to establish a Community Facilities District (CFD). If approved by the Board of Supervisors, formation of the CFD will result in the levy of a benefit charge which will appear on the regular property tax bill in November 1994 for property located within the district boundaries. The revenue raised by the creation of the CFD would restore levels of service equivalent to the hours of operation in 1992- 93, and would provide the full budget allocation for new books and other library materials. For libraries in our community to benefit from this proposal, the City of Santa Clarita must give consent by resolution to be included in the CFD by the time of the County of Los Angeles, August 30 public hearing. The proposed CFD is authorized under the Mello -Roos Community Facilities Act of 1982 and does not require an election for passage of this proposal. The County library staff has had community information meetings for the public regarding the proposed CFD. A meeting was held at City Hall on Monday, August 15, 1994, at 7:00 p.m., and City staff attended. Resulting from the proposed CFD campaign, the City has received 83 reply cards supporting the CFD, one of no support and one letter requesting additional information. County library staff has provided information about the benefit charge amount for the proposed CFD. For 1994-95 the benefit charge for a single-family residential parcel will be $28.50 per dwelling unit. Multifamily residential and mobile home parcels will be charged at a reduced rate per dwelling unit; non-residential parcels will be charged based on the area of the land and the type of land use on the parcel relative to a single family home. #gym: Based on this formula, if all 52 cities and the unincorporated areas of the County are included in the CFD, there will be 845,000 assessable parcels in the District. This would result in approximately one million total benefit units which will generate $28.6 million in additional revenue for the County Library. Following this scenario, if the City of Santa Clarita participated with 74,614 benefit units, the total amount generated would be $2,126,499. Attached is the proposed CFD benefit charge schedule for Fiscal Year 1994-95. Another library financing alternative is Senate Bill 1448 (Roberti) which provides for establishment of benefit assessment districts for library funding. The proposed assessment must be placed before the electorate and would take effect upon majority voter approval. SB 1448 is similar to 1993 Senate Bill 566 which the City Council previously supported. Although SB 566 received legislative approval, it was vetoed by the Governor. It is unknown whether the Governor will approve SB 1448 should it be presented to him for signature. SB 1448 is presently in the final stages of legislative consideration. Even if SB 1448 were to be approved in the Legislature and signed into law by the Governor, enactment of local benefit assessment districts would not likely be viable until Fiscal Year 1995/96. City staff has attended an informational and a community meeting related to the proposed CFD. Although, the City supports all efforts to maintain library services in our community, because of the timing of this issue and lack of opportunity for public input on this proposal, City staff cannot endorse the proposal. City staff will work with the County Library staff to explore alternatives irrespective of what happens with the proposed CFD. City staff is also concerned about the legality of this financing method. This may be the first time the Mello -Roos Community Facilities Act of 1982 is used to levy a benefit assessment without an election. City staff believes this method may be challenged by litigation. The potential of this occurring is possible and lessens the comfort level for City staff to endorse this proposal. RECOMMENDATION Based on above, and in the absence of information and inability to conduct a through public participation process, staff recommends: (1) that the City Council not participate with the County at this time in the proposed CFD, (2) direct staff to write a letter to the County Library staff notifying them of the Council's decision, and (3) direct staff to implement a public participation program on the CFD proposal and if City support is determined, request County to include City in CFD next year. ATTACHMENTS Information Sheet on Proposed CFD Proposed CFD Benefit Charge Schedule, FY 1994-95 Summary of Proposed 1994-95 Service Hours Questions and Answers Sheets REP/RG:mat PRCO Vdw oo COUNTY OF LOS ANGELES PUBLIC LIBRARY INFORMATION SHEET PROPOSED COMMUNITY FACILITIES DISTRICT FOR LIBRARY SERVICES Proposal The County Public Library has submitted a proposal to the Board of Supervisors to establish a Community Facilities District (CFD) and to collect charges to provide supplemental financing for library services. The proposed CFD is authorized under the Mello -Roos Community Facilities Act of 1982. If approved by the Board of Supervisors, formation of this CFD will result in the levy of benefit charges which will appear on the regular property tax bill for property located within the district boundaries. Background As a result of the State's budget crisis, the County Library has suffered severe service reductions over the past two years, including the permanent closure of 10 libraries, the layoff of 300 employees, and a 60% reduction in hours open. The County of Los Angeles Public Library was the most severely impacted library jurisdiction in the entire state, losing 50 per cent of its property tax, the primary source of its ongoing revenue. More than half of our libraries are open only two days (14 hours) per week. The final 1994-95 County Budget provides funding to maintain the current level of service in all 87 libraries through the end of September, 1994. However, no permanent funding solution has yet been implemented. Without new long term funding in place, further reductions In service, including the possible closure of additional libraries, will be necessary. Mello -Roos Community Facilities District The Mello -Roos Community Facilities Act of 1982 specifically authorizes the County to establish a community facilities district (CFD) to finance library services and facilities, and to fix and collect charges for a CFD. These charges may be apportioned based on the estimated benefits from such services to be received by each parcel in the district. The supplemental funding provided by the CFD will enable the County Library to restore services lost as a result of state property tax shifts. Revenues generated in the proposed CFD are intended to benefit all of the County Library service area, which includes 52 cities and unincorporated county areas. Formation Procedures To establish a CFO, the Board must adopt a resolution of intention to establish the district and set a public hearing. The resolution describes the boundaries of the proposed CFO and directs the County Librarian to file a report with the Board on or before the hearing date briefly describing the facilities and services to be provided and the estimated costs. The Board of Supervisors has set a public hearing on Tuesday, August 30, 1994 at 9:30 a.m. in Room 383 of the Kenneth Hahn Hall of Administration, 500 West Temple Street in Los Angeles. At the public hearing, all written protests against establishing the district must be considered by the Board. At the conclusion of the hearing, the formation proceedings must be abandoned if either 50% or more of the registered voters residing in the proposed CFO, or the owners of one- half or more of the land area in the proposed CFO, file written protests against establishing the district. If there is no such majority protest, the Board may by a majority vote adopt a resolution of formation establishing the district. At the hearing, the Board may modify the proposed district. The formation of a CFO does not require any action by LAFCO. Levying Benefit Charges In addition to the resolution of intention, the Board must adopt an ordinance to fix charges and levy the charges on the regular tax bill. The ordinance requires that a report must be filed describing the amount of the proposed charges for each parcel within the CFO boundaries, and requires a public hearing to establish the charges. The charges may be modified but not increased at the hearing. At the conclusion of the hearing, the Board may adopt the proposed charges by resolution. Inclusion of Cities In the CFD The County may not form a CFO within the boundaries of a city without the consent of the city. Therefore, it will be necessary for each city served by the County Library to give consent to be included in the CFO. Such city approvals must be submitted to the County by the date of the Board's adoption of the resolution of formation. A city which does not provide consent may not be included within the boundaries of the CFO at the time it is formed, and will not benefit from the extended library services provided in and financed by the CFO. Extended Library Services The County Library estimates that the proposed CFO would provide supplemental funding sufficient to restore service to the equivalent of 1992-93 service levels, and is requesting that the Board approve the proposed CFO to take effect for the 1994-95 fiscal year. If the Board approves formation of the district, the benefit charges would be placed on the tax roll for 1994-95, and would appear on the November, 1994 tax bill received by property owners in the CFO. Service levels for cities choosing not to be included in the CFO will be financed by other Library revenues, and will necessarily be at a lower level than in those cities included in the CFO. No CFO charges will be used to provide library services to areas outside the CFO. infoAd 7-18-94 �J �J COUNTY OF LOS ANGELES PUBLIC LIBRARY PROPOSED COMMUNITY FACILITIES DISTRICT BENEFIT CHARGE SCHEDULE FISCAL YEAR 1994195 TYPE OF PROPERTY ANNUAL BENEFIT CHARGE Single Family Residential $28.50 per unit (including condominiums) Multi -Family Residential $21.38 per unit Mobile Home $14.25 per unit Non -Residential Charge is calculated as follows: (7.0 EDU's per Acre for first 5 Acres) plus Based on the median density for Single (0.875 EDU's for each additional Acre) multiplied Family Residential in Los Angeles by the benefit factor for type of non-residential County of 7 Equivalent Dwelling Units property use. (EDU's) per Acre See Examples Below Vacant $3.56 per parcel (Single Family Residential) Vacant $24.94 per acre (to maximum of 5 acres) (Non -Single Family Residential) $3.56 minimum charge Examples of benefit charges on non-residential parcels: 1. A store or supermarket located on a one-half acre parcel 0.5 Acre X 7.0 EDU's per Acre X 0.5 Benefit Factor = 1.75 Benefit Units X $28.50 = $49.88 2. A service station located on a one -quarter acre parcel 0.25 Acre X 7.0 EDU's per Acre X 0.25 Benefit Factor = 0.4375 Benefit Units X $28.50 = $12.47 3. An office building located on a one acre parcel 0 1.0 Acre X 7.0 EDU's per Acre X 0.75 Benefit Factor = 5.25 Benefit Units X $26.50 = $149.63 7.31-94 --�-•- COUNTY OF LOS ANGELES PUBLIC LIBRARY as srs— w; Cquern or LOS ANGELES PUBLIC ueruav PROPOSED COMMUNITY FACILITIES DISTRICT FOR LIBRARY SERVICES WHAT IS THE COUNTY OF LOS ANGELES PUBLIC LIBRARY? • The Los Angeles County Public Library District is a system of community libraries which serves most of the unincorporated areas of the County of Los Angeles as well as 52 of its 88 incorporated cities. Though it is governed by the County Board of Supervisors, its financing comes primarily as a share of the service area's property taxes. Over 3.3 million people in a 3,000 square mile area rely on the County of Los Angeles Public Library for their information needs as well as for enjoyable reading. WHAT IS A COMMUNITY FACILITIES DISTRICT (CFD)? • It is a financing mechanism authorized in state law under the Mello -Roos Community Facilities Act of 1982. That law allows a local agency to establish a community facilities district to finance certain facilities and services provided by the agency. WHY IS THE PROPOSED CFD NEEDED? • The supplemental funding provided by the CFD will enable the County Library to restore services lost as a result of state property tax shifts. Revenues generated in the proposed CFD are intended to benefit all of the County Library service area, which includes 52 cities and most of the unincorporated county areas. DHOW WILL THE NEW FUNDS BE USED? • Funds will be used ONLY for the County Library. • Funds will be used to keep all 87 County Library service outlets open during fiscal year 1994-95. • Funds will be used to restore hours to a minimum of 5 days per week at each library for fiscal year 1994-95. Some libraries will be open 6 or 7 days per week. • Funds will be used to restore the Library's budget for books and materials. • Funds will be used to restore full services and programs such as story times, after -school educational and cultural programs for youth, homework assistance, information services, literacy, outreach services, continuing education programs, etc. WHAT WILL HAPPEN WITHOUT ADDITIONAL FUNDS FROM THE CFD? • Without the additional revenue generated by the proposed CFD, the County Library will continue to operate. However, service levels will be limited by the amount of remaining property tax, or $30 million, plus any one-time funding. The Library cannot provide service beyond its available financing. • Fifty-one (51) library service outlets will be closed. • Service hours will be reduced an additional 43% for a total reduction of 78% from 1992-93 levels. • Lay off approximately 200 permanent and 100 hourly employees. WHAT WILL THE PROPOSED CFD COST? 09 Please see cost information on the other side of this page.. IF YOU NEED ADDITIONAL INFORMATION, CONTACT YOUR LOCAL COUNTY LIBRARY COUNTY OF LOS ANGELES PUBLIC LIBRARY QUESTION AND ANSWER SHEET PROPOSED COMMUNITY FACILITIES DISTRICT FOR LIBRARY SERVICES The County Public Library has submitted a proposal to the Board of Supervisors to establish a Community Facilities District (CFD) and to collect charges to provide supplemental financing for library services. The proposed CFD is authorized under the Mello -Roos Community Facilities Act of 1982. If approved by the Board of Supervisors, formation of this CFD will result in the levy of benefit charges which will appear on the regular property tax bill for property located within the district boundaries. Following are some of the most commonly asked questions about this new financing proposal. 1. What Is a community facilities district (CFD)? It is a financing mechanism authorized in state law under the Mello -Roos Community Facilities Act of 1982. That law allows a local agency to establish a community facilities district to finance certain facilities and services provided by the agency. 2. Why do I need to pay more for library services? The County Library has lost nearly half of its budget over the past three years, and is no longer able to maintain current levels of service. The Library budget is dependent almost entirely on property taxes, which have been shifted by the State to help fund education. The County Library J now has no other revenue source available to replace lost property tax revenues. 3. Will I be able to vote on this matter? The formation of a CFD for extended library services is approved by a vote of the county Board of Supervisors, and does not require an election. Instead, there is a formal majority protest procedure established in the law. A public hearing will be conducted on August 30 to provide an opportunity for the public to give input to the Board before a final decision is made. At the public hearing all written protests against establishing the district must be considered by the Board. At the conclusion of the hearing, the proceedings must be abandoned it at least half of the registered voters in the proposed district, or the owners of at least half of the land area in the proposed district, file written protests. 4. How much will 1 have to pay? When will the charge begin, and how will It be collected? The benefit charge for single-family residential parcels will be $28.50 per dwelling unit. Multi -family residential and mobile home parcels will be charged at a reduced rate per dwelling unit. Non- residential parcels will be charged based on the area of the land and the type of land use on the parcel relative to a single-family home. The charge will be collected on the regular property tax bill beginning with the bill for 1994-95, 0 5. Will the amount of the charge Increase? 1 The Board of Supervisors will conduct an annual review of the charges levied for this district. The amount of the charge must be limited to the cost of the service, and cannot be increased arbitrarily. 6. What additional service can I expect for this charge? The objective of establishing the proposed CFO is to provide additional funds to extend library services to the levels that existed in fiscal year 1992-93. This means that the libraries will be open extra days and longer hours than they are now, and will have new books and other library materials available. You will also find an increase in library services and programs. 7. Will every city be Included In the proposed CFD? No. The proposed CFD affects only the 52 cities and the county unincorporated areas served by the County of Los Angeles Public Library. The county Board of Supervisors can make the decision to include the unincorporated areas in the CFD, Under the law, the Board of Supervisors may include a city in the CFD only if that city gives its consent to the county. 8. How do I let my city know how I feel about being Included In the proposed CFD? Most cities will be considering whether they want to be included in the proposed CFD for County Library services at one of their council meetings in August. You may want to attend your city council meeting and let your council know what you think about being included in the CFD so that library service to your city can be improved. 9. Why does my city need to give Its consent to the county to proceed with this program? The authority of the Board of Supervisors to establish a CFO is limited to the county unincorporated area. The Board may not include a city within the boundaries of the proposed CFD unless that city gives its consent. 10. Why not just charge everyone who uses the library a fee for their library card? It is not legal for public libraries to charge their residents a fee for providing basic library service. it. Isn't this really just a way around Proposition 13 to charge higher property taxes? No. The law distinguishes between taxes and assessments or charges, and the proposed benefit charge is not a property tax. California court decisions have ruled on the formal differences between taxes and other charges, including findings that benefit charges are not subject to the i constitutional restrictions on ad valorem property taxes or special taxes enacted by Proposition 13. CFDQ&A 7.�M T PA' Y CF ZP<G TA RE: The Library System In The Santa Clar#ta-tialfe`y� To Whom it may concern, L r[EM NO I read the attached article while driving through Bishop, California, a small town, a quaint town, but not an especially affiuent town. I felt sadness and a sense of loss for the children in this valley area who should have received a button or t-shirt for reading some books. Reading books has a direct correlation with the development of vocabulary and the ability to articulate oneself. Reading books has a direct correlation to test score results and the future differentia- tion between white collar skills and blue collar skills. Reading books needs to be taken a little more seriously in the areas known as the Santa Clarita Valley. There is enough money in this valley, both in the public and private sectors to support a library system equipped with youth reading programs, adult reading instructional programs, books on tape, books on order and lots of books on shelves, magazines, catalogues, videos, traveling arts and crafts exhibitions and visiting lecturers seven days a week. There are too many blatant, gross excesses in this valley in both the public and pri- vate sectors compared to a financially challenged community, like Bishop, not, to have a place that provides for a program in which children under the age of twelve are reading up to 206 books during a portion of the summer. That it needs to be argued out in a city council meeting is an outrage. With the utmost concern, Amy Jones citizen and student Replies can be Caxed to 805-255.3075 S 1 years The I urry I the and vear, •ver, fair - the ,ney- nent, 'eter- with Tri- b is cad - and :ling sett �d THEY READ MUCH Students devour books the old-fashioned way By Gtrren Will it" Register news scan An eight -week summer reading program at the Inyo County Library in Bishop cul- minated with a special awards ceremony for particip- ants last Friday. The theme this year was "Reading is a Magic Trip,` with posters, bookmarks and stickers provided by the American Library Association and McDonalds. Sixty children to age 12 par- ticipated in the program this summer and logged a total of 1.349 hooks. Since this was not a contesteach child read to achieve his or her personal best. Certificates were presented to each child who read 10 or more books with recognition for the more avid readers. Friends of the Bishop Library arranged for prizes for all the participants and extra good- ies for some who read the most books. The two top readers who received T-shirts included Annette Moreau who read 206 books and Meaghan Conoly who read 81 books. All those who attended the ceremony received book bags and a McDonalds bag of goodies along with their certificates. According to Branch Super- visor Sue Franz, the Bishop library staff is grateful to the parents who helped their children log the books they read. "It is so important for child- ren to see their parents read- ing and using the library,' Franz said. Friends of the Bishop Library sponsor the summer reading program each year: For more information about the Ingo County Library prog- rams or Friends of the Bishop Library call 873-5115. -n on August 10. c. 1!ospital in R sa ci rill nci'.; ,;�F' 21... 199?-INYO REGIsrER A : Hospice program seeks support The Hospice of Owens Valley Southern Inyo is asking for com- munity support during its August membership drive. Hospice is a non-profit_ organi- zation and does not charge for services or use of health equipment. "We must rely on thevocid and caring people of our community for help and support to enable us to carry on our many volunteer services," Hospice Spokesperson Mary Dufault said. A packet will be sent out to residents that contains informa- tion and an application for annu- al membership dues for 1994-95. A donation of E 10 is asked for membership. For more information contact Dw till! at 764-2260. THANKS FOR READING THE IM'O REGISTER To: CITY OF SANTA CLARITA From: JoAnne Klein 8-23-94 4:21pm P. 1 of 1 SHEPPARD, MULLIN, RICHT33R & HAMPTON A Partnership Including Professional Corporations Attorneys at Law 333 South Hope Street, Eo��rty-Eighth Floor Los Angeles, CalifIYLa 90071 Telephone (213) W0-1780 MEETING Facsimile (213) -61 398' eq - TTE.M N0, TELECOPY CO LETTER ** THIS TELECOPY TRANSMISSION WILL NOT BE MAILED ** 116R5111413� ON August 23, 1994 AT (Date) (Time) TOTAL NUMBER OF PAGES 1 (INCLUDING COVER LETTER) TELECOPY PHONE NUMBER 805-259-8125 CONFIRMATION PHONE NUMBER CONFIRMED BY (Receiving Party) IF ALL PAGES NOT RECEIVED, PLEASE CALL (213) 620-1780 X. 4308 MESSAGE: This brief message represents my personal view (and has nothing whatsoever to do with the firm of Sheppard, Mullin, Richter & Hampton through which this message has been faxed) to do away with the freeway like conditions on Lyons Avenue. While it is true we need better access to businesses, let's not do so at the expense of those already established. I used to LIKE to shop on Lyons. However, it has now become so dangerous that I find I avoid it if possible. Cars trying to come out of sidestreets do not have enough room to inch out to see IF the road is clear, let alone try to cross or turn onto Lyons. Please. LET'S KEEP OUR COMMUNITY ATMOSPHERE. MOST OF US, IF NOT ALL, MOVED UP HERE TO GET AWAY FROM THE FRANTICITIES OF BIG CITY LIVING.... Why not be innovative and KEEP THE ATMOSPHERE As is INSTEAD OF RUINING A MUCH -DESIRED WAY OF LIFE. RESTORE UNRESTRICTED STREET PARKING. RESOLUTION NO. 94-109 RESOLUTION OF THE CITY OF SANTA CLARITA CONSENTING TO THE INCLUSION OF THE TERRITORY OF THE CITY IN COMMUNITY FACILITIES DISTRICT NO. 8 OF THE COUNTY OF LOS ANGELES WHEREAS, the Board of Supervisors of the County of Los Angeles ("County") has instituted proceedings under the Mello -Roos Community Facilities Act of 1982, as amended, consisting of Section 53311, et seq., of the Government Code, to form Community Facilities District No. 8 of the County of Los Angeles ("District") to finance public library services and facilities within the service area of the County of Los Angeles Public Library; and WHEREAS, it is the intention of the Board of Supervisors of the County, upon formation of the District, to fix and collect charges on the tax roll from the parcels within the District to pay' for the cost of such public library services and facilities, as authorized by Sections 53342 and 25210.77a of the Government Code; and WHEREAS, the proposed District includes all the territory within the City of Santa Clarita. NOW, THEREFORE,.BE IT RESOLVED that this Council: Section 1. Finds that the public health, safety and economic welfare of the City will be promoted by participating in the proposed District and that the territory of the City will benefit from the proposed library services and facilities. Section 2. Approves and consents to the inclusion of all of the incorporated territory of the City in the proposed District and to the exercise of exclusive jurisdiction by the Board of Supervisors of the County ("Board") over all proceedings necessary to complete the same in accordance with the provisions of the Act, subject to the following conditions: (1) that the 1994-95 charge fixed by the Board for single family residential parcels within the City shall not exceed $28.50 per parcel; (2) that upon this Council's written request received by the Board on or before May 1 of any year, the Board shall eliminate all charges to parcels within the territorial limits of the City for the following fiscal year and shall further suspend provision of such library services and facilities proposed to be paid for by those charges; and (3) that the County will indemnify and defend the City at the County's own expense against any challenge to the formation of the District by the County or to the levy of charges for library services and facilities on the parcels in the District, provided that the County shall have sole charge over the conduct of the litigation and all decisions relating to the litigation. Section 3. Directs the City Clerk to file certified copies of this resolution with the Executive Officer of the Board of Supervisors of the County. PASSED, APPROVED AND ADOPTED this day of , 1994. ATTEST: STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) § CITY OF SANTA CLARITA ) I DONNA M. GRINDEY, City Clerk, hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the day of , 1994, by the following vote of the City Council: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: