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080994 - LA County Library District Request for Support of Mello-Roos - Box 067TO: HONORABLE MAYOR AND MEMBERS ROSEMEAD CITY COUNCIL FROM: FRANK G. TRIPEPI, CITY MANAGER DATE: AUGUST 3, 1994 RE: CONSIDERATION OF THE COUNTY OF LOS ANGELES LIBRARY DISTRICT REQUEST FOR SUPPORT OF THE MELLO-ROOS COMMUNITY FACILITIES DISTRICT On July 20th, staff attended a meeting called by Los County Chief Administrative Officer, Sally Reed and County Librarian, Sandra Reuben, to discuss the County Library District's proposal to establish a community facilities district (CFD) to generate the revenue needed to provide adequate library services. County staff indicated that as a result of the ongoing budget problems experienced by the State, the County Library District has lost more than 50% of its property tax revenues resulting in the closure of ten (10) permanent facilities and a 60% reduction in service hours countywide. The Rosemead Library, for example, is now only open three days each week. With the addition of funds expected as the result of the formation of the proposed CFD, the District plans to restore service levels to 1992/93 levels. The amount of the residential benefit assessment that is being recommended by the County Library District to the Board of Supervisors is as follows: TYPE OF PROPERTY Single Family Residential (including condominiums) ANNUAL ASSESSMENT $28.50 per unit Multi-Family Residential Mobile Home Vacant (Single family residential) Vacant (Non-single family residential) $21.38 per unit $14.25 per unit $3.56 per parcel $24.95 per acre (to maximum of five acres) $3.56 minimum charge COUNCIL. AGENDA A U 6 119 1y94 ITEM No. B Page 2 of 3. Non-residential Rate based on formula explained on on "Attachment A" The County is requesting, at this time, that the City Council support Resolution No. 94-38 (attached) consenting to the inclusion of the City of Rosemead in the proposed CFD. The resolution states specifically that the City (1) consents to the inclusion of all incorporated territory within the CFD; (2) that the 1994/95 charge fixed by the Board of Supervisors shall not exceed $30.00; and that (3) the City Council, upon written request to the Board of Supervisors prior to May 1 st of any year, may withdraw from the CID. In return for the City's consent to join the CID, the County Library District will increase levels of service at the Rosemead Library ranging from a minimum of four (4) days per week (28 hours of total service) to six (6) days per week (50 hours total service). The amount of service to be provided by the individual libraries will be determined by the status of the CID after it is formed. If, for example, the City of Rosemead becomes a part of the CFD, and most other cities do not give consent to join, the Library will likely remain open four (4) days each week. If, on the other hand, the City Council consents to join, and most of the other cities in the Library District agree as well, the Rosemead Library will likely remain open for six (6) days each week. The two extremes were presented by the District as "best case" and "worst case" scenarios. In the event that the City of Rosemead decides to stay out of the CID, the County has indicated that library services would be reduced to fourteen (14) hours per week over two days. In the case of the latter, levels of service would be determined according to amount of revenue generated by the current assessment paid currently by the residents. As required by State law, the Board of Supervisors have scheduled a public hearing on this matter on August 30, 1994. In addition, they have requested that cities consider the proposal and take action before that date. Staff has attached for the Council's review a copy of Resolution No. 94- 38 stating the City of Rosemead's consent to be included in the CFD. However, since this is policy decision of the City Council, the following options are presented for discussion: 1. Approve Resolution No. 94-38 and consent to be included in the CID. 2. Investigate the possibility of assuming responsibility of the library by withdrawing from the existing library district. Staff regards this as a possibility only if the City would receive the current tax base allocated to the District from the 1% ad valorem property tax paid in Rosemead. Explore the possibility of the Redevelopment Agency renegotiating the existing pass through agreement with the Library District and allocating an additional $160,000 annually by way of recovering the amount generated by the 4% of the gross tax increment specified in that agreement. This option should be explored in concert with option #2. Page 3 of 3. 4. Examine the possibility of the Library District accepting the total specified in the pass through agreement ( $160,000) as an offset to the total benefit assessment which would be charged to the residents. If feasible, this would be applied against the estimated $420,000 total benefit that would be collected in the City of Rosemead under the current CID proposal, thus reducing the amount paid by the property owners in Rosemead. 5. Implement option #4 for a period of one (1) year and schedule an advisory ballot measure to determine the preferences of the residents on this issue. 6. Take no action. This response, however, would result in extremely limited hours of operation for the library. Staff is working to gain additional information on the feasibility and ramifications of these options. If the Council chooses not to be included in the proposed CID, it would be appropriate to provide direction as to what direction the Council wishes to pursue. Staff will continue to research these issues, and the item will be brought back to the City Council for further consideration. jsstaffinem.cty.cfd