AgdaPkt 2020-07-13 Special Joint SA PFA

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6.C. - Page 113 of 124 CBID are for services, programs and improvements directly benefiting each individual parcel within this area and support increased cleanliness, commerce, business attraction and retention, increased property rental income and improved District identity. No CBID funded services, activities or programs will be provided beyond the CBID boundaries. While every attempt is made to provide CBID services and programs to confer benefits only to those identified assessed parcels within the CBID, the California State Constitution was amended via Proposition 218 to stipulate that general benefits exist, either by design or unintentional, in all assessment districts and that a portion of the program costs must be considered attributable to general benefits and assigned a value. General benefits cannot be funded by assessment revenues. General benefits might be conferred on parcels within the District, or "spillover" onto parcels surrounding the District, or to the public at large who might be passing through the District with no intention of transacting business within the District or interest in the District itself. Conventional assessment engineering experience has found that general benefits within a given district tend to range from 2-5% of the total costs. There are three methods that have been used by the Assessment Engineer for determining general and special benefit ratios within assessment districts: (1) The parcel by parcel allocation method (2) The program/activity line item allocation method, and (3) The composite district overlay determinant method. A majority of CBIDs or PBIDs in California for which the Assessment Engineer has provided assessment engineering services since the enactment of Proposition 218, have used Method #3, the composite district overlay determinant method which will be used for the Downtown Redwood City District CBID. This method of computing the value of general benefit involves a composite of two distinct types of general benefit — benefit to the public at large within the District and benefit to parcels outside the District. Separate General Benefits from Special Benefits and Related Costs (Prop 218): Total costs are estimated at $ 781,035 (see Table below). General benefits are factored at 3% of total (see Finding 2 on page 6 of the Assessment Engineer's report) with special benefits set at 97%. Prop 218 limits the levy of property assessments to costs attributed to special benefits only. The 3% general benefit cost is computed to be $ 24,612 with a resultant 97% special benefit limit computed at $ 795,781. This is the maximum amount of revenue that can be derived from property assessments from the subject CBID. The total amount of revenue proposed to be derived from CBID assessments and general benefits for Year 1 is $ 820,393.00. 30 319