6,948 TOTALSTREET LIGHTS

• 6,546 owned and maintained by Southern California Edison (SCE)

• 40 city-owned and maintained (i.e., overpass, etc.)

• 38 VMUS-owned and maintained (SCLA, Foxborough)

• 324 safety lights

116 TOTALTRAFFIC SIGNALS

• 83 City-owned and maintained of which 17 multi-jurisdictional with San Bernardino County, Hesperia, & Adelanto which reimburse Victorville their portion of O & M costs

• 26 Traffic Signals are Caltrans-owned and maintained but the City pays energy costs under maintenance agreements.

2008* IS THE YEAR THAT SLAD 2 TOOK EFFECT.

The Ad Valorem Tax received increases and decreases as property values increase or decrease.

Not all beneficiaries are paying for the O & M of street lighting, such as multi-residential, commercial and industrial parcels.

Continuously rising electricity costs. FY12/13 – SCE has increased their rates 7%. Since 2004, Southern California Edison (SCE) has increased their rates. FY09/10 - SCE with approval of the California Public Utility Commission (CPUC)

increased electricity costs 11.1%. FY10/11 - SCE increased rates 5% due to fuel costs. 98% of FY12-13’s Street Lighting Budget is electrical costs. Electricity Costs increased 57% from 2006 ($601,420) to 2011 ($1,055,120).

Due to the housing crisis and down turn in the economy over the last several years, the collection of monies has been elusive.

Due to Proposition 218, the current assessment district cannot increase its administrative costs without voter approval.

Expenditure Changes:• 7% Electricity Cost Increase• Pole replacement costs

Revenue Changes:• 1% Property Value Increase Anticipated

Expenditure Changes:• 7% Electricity Cost Increase

Revenue Changes:• 7% Increase in per parcel assessment from $25.21 to $26.97

3,025 fewer streets lights operational $44/light – SCE charge to turn lights off ($133,100) $49/light – SCE to re-energize lights ($148,225) Additional SCE charges possibility as stated in rate disclaimer.

Operational hours Dusk plus 6 hours48% reduction in operational hours$65/light - SCE start-up fee ($327,730)

New District to establish fair & equitable assessment methodology for developed & vacant parcels and single-family, multi-family, commercial, & industrial parcels.

No General Fund subsidy required.All parcels that receive a special benefit to participate.Ad Valorem Tax (SLD 1) to fund O & M for arterial street

lighting & traffic signals that receive a general benefit. Requires voter approval & compliance with Prop 218

approved.Upon voter approval, SLAD 2 would be dissolved.

1972 Landscape & Lighting Act permits assessment districts to fund street lighting O & M

Proposition 218 (“Right to Vote on Taxes Act”) enacted November 5, 1996 & became effective July 1, 1997. It established new formation & administration requirements, such as the District has the burden to demonstrate two key findings needed for an assessment:

Special benefit (A particular & distinct benefit over & above general benefits)

Proportionality

General benefits to be separated before assessing the special benefit.

"Special assessment": Charge levied against property, which benefits particularly & directly by the improvement in order to pay for it’s cost.

A majority protest will cause a new district to fail when the majority of the weighted ballots received are in opposition to the proposed assessment.

Assessment amount to be based upon a parcel’s equivalent dwelling unit (EDU’s) factor, land use designation, & if it’s improved/developed, vacant, recorded and/or entitled.

Equivalent Dwelling Unit (EDU’s) Parcel Land Use Designation Benefit Vacant Parcels Escalator

 

Land Use CategoryBasic Unit

xEDU

Factor= EDU Rate

Total No. Lots

Total Acreage

Total Number EDU‘s/Land Use

EDU Rate Amount

Total Annual Assessment

Amount/Land Use

SFR Developed or SFR Vacant w/Map 1 D.U. x 1 = 1.0 EDU/DU 33,093.00

20,565.24 41,508.25 $13.98 $580,285.33

SFR Developed & Remote or SFR Vacant & Remote w/Map

1 D.U. x 0.5 = 0.50 EDU/DU 883.00

SFR Vacant w/TTM 1 D.U. x 0.5 = 0.50 EDU/DU 139.00SFR Vacant & Remote w/TTM 1 D.U. x 0.25 = 0.25 EDU/DU 131.00SFR Rural Residential w/o Street Lights, Developed or Vacant

1 D.U. x 0.25 = 0.25 EDU/DU 2,306.00

SFR Vacant Acreage not Remote 1 D.U. x 0.25 = 0.25 EDU/DU 50.00SFR Vacant Acreage Remote 1 D.U. x 0 = 0.00 EDU/DU 51.00Multi Developed or Vacant w/Map 1 D.U. x 0.8 = 0.80 EDU/DU 984.00

1,160.91 3,454.10 $13.98 $48,288.32

Multi Vacant & Remote w/Map 1 D.U. x 0.4 = 0.40 EDU/DU 16.00Multi Vacant w/TTM 1 D.U. x 0.4 = 0.40 EDU/DU 0.00Multi Vacant & Remote w/TTM 1 D.U. x 0.2 = 0.20 EDU/DU 0.00Multi Vacant Acreage not Remote 1 D.U. x 0.25 = 0.25 EDU/DU 18.00Multi Vacant Acreage Remote 1 D.U. x 0 = 0.00 EDU/DU 13.00

Office Professional, Commercial & Industrial 1 ACRE x 4 = 4 EDU/ACRE 1,170.008,341.90 20,944.88 $13.98 $292,809.42

Vacant Office Professional, Commercial & Industrial 1 ACRE x 2 = 2 EDU/ACRE 1,207.00

Public Property & Institutional 1 ACRE x 4 = 4 EDU/ACRE 70.007,126.75 16,633.20 $13.98 $232,532.12

Vacant Public Property & Institutional 1 ACRE x 2 = 2 EDU/ACRE 704.00

Parks, Open Space, & Agriculture Developed 1 ACRE x 1 = 1 EDU/ACRE 291.002,542.23 1,870.31 $13.98 $26,146.98

Parks, Open Space, & Agriculture Vacant 1 ACRE x 0.5 =0.50

EDU/ACRE83.00

Exempt 0 ACRE x 0 = 0 EDU/ACRE 312.00 678.09 0.00 $13.98 $0.00

City-Wide Street Lighting Assessment Budget

= $13.98

Annual Assessment Amount Per

EDU

$1,180,08184,391.86

Total Number of EDU’s for All Land-Use Types

DescriptionEstimated FY13-14 Budget

Special Benefit

Less City Contribution

Source of City Contribution

District Est. FY 13-14 Budget

Local Roads $855,469 100% $0 N/A $855,469

Arterial Roads $416,188 25% $312,141 75% Ad Valorem $104,047

Traffic Signals $441,130 50% $220,565 25% Ad Valorem & 25% Measure I

$220,565

Parking Lots & Park-N-Rides

$14,145 0% $14,145 N/A $0

TOTAL $1,726,932 ~ $546,851 ~ *$1,180,081

*The difference between the City-Wide SLAD FY13-14 Max Assessment Amount and the Total City-Wide SLAD Budget Amount is due to rounding.