Cosumes Community Services District Cosumnes Administrative Services Department*

Public confusion and misunderstanding are evidenced by the need for extensive and repeated community outreach meetings and the mixed success in securing timely voter approval for needed revenue increases. Contributing to this confusion are: the division in roles for Elk Grove's parks between the City of Elk Grove and Cosumnes <b>Community Services District</b> Enriching Community Saving Lives Cosumnes Community Services District, 2019-2020 Grand Jury Response, Community Services District (CCSD); priorities among neighborhood and district-wide facilities; and the challenge of managing and understanding the park system as an integrated program. Response: The CCSD partially agrees with this finding. The CCSD agrees that a new L&L assessment requires extensive and regular community outreach meetings to be considered successful. It is important to note the CCSD hosts multiple public outreach meetings with property owners in various locations of the District throughout the year, works with neighborhood "champions" that help engage and education property owners, and has full-time staff and a hotline available to answer community questions regarding parks, including L&L fees. The District prepares an annual report on each Zone to illustrate the revenues and expenditures for the fiscal year. The CCSD disagrees with the finding that the different roles of the City of Elk Grove ("City") and the CCSD have created confusion on managing and understanding the parks system as an integrated program. The City and the CCSD have a great partnership and have created a robust parks system that is a model in the region.

The 19 different Landscape and Lighting (L&L) district assessment rates, varying by as much as a factor of four, cause significant inequities for Elk Grove residents in terms of payments they make and benefits they derive from Elk Grove parks. <b>Response:</b> The CCSD partially agrees with this finding. The CCSD agrees that the L&L assessments vary between benefit zones. The CCSD disagrees that the difference of assessment rates creates inequity. Each benefit zone's annual assessment is based on the amenities within the zone when the assessment was adopted, and the level of current maintenance standards that can be afforded with the annual assessment. In accordance with the Landscape and Lighting District Law (Streets and Highways Code Section 22500 et seq.), an engineer's report is prepared for each L&L benefit zone setting forth the estimated benefits to each lot or parcel within that benefit zone. By law, the District cannot assess the same L&L fee to every parcel because each parcel's fee is based on that specific parcel's estimated benefits. The parks in the entire City are available to all residents and non-residents equally.

The practice of contributing revenue from individual benefit zones to district- wide facilities as a priority ahead of funding parks within each benefit zone compounds the revenue shortages experienced by certain benefit zones. Response: The CCSD partially agrees with this finding. The CCSD agrees that revenue shortages within each individual benefit zone may create a challenge to maintain or replace the amenities in the park system. Community Services District Enriching Community Saving Lives Cosumnes Community Services District, 2019-2020 Grand Jury Response, The CCSD disagrees that the contribution to district-wide will result in revenue shortages in certain benefit zones. The contribution to district-wide facilities provides an opportunity to ensure district-wide facilities are maintained at a level that will provide all residents the ability to utilize the amenities that may not be available in their neighborhood.

The requirement in Proposition 218 to secure a public vote in order to increase funding in excess of a Consumer Price Index (CPI) index is an unwieldy restraint that impedes adequate funding to maintain, repair and restore Elk Grove parks. Response: The CCSD agrees with this finding.

The existing L&L assessment rates are insufficient to sustain maintenance, repair, and restoration for parks indefinitely. Specifically, in the short term, revenue from L&L assessment rates in BZ3 and BZ4 is insufficient to maintain, repair, and restore all parks in those benefit zones. Response: The CCSD agrees with this finding.

The emphasis on individual benefit zones and overlay districts creates a complex and costly administrative burden requiring fragmented budgeting and management, and voter approvals to generate adequate revenue. Response: The CCSD agrees with this finding. The CCSD agrees the emphasis on funding on individual benefit zone creates complex and costly administrative burden; therefore, the District has explored options to place a district-wide tax measure that will help mitigate the cost increases or provide funding for rehabilitation and replacement of the current infrastructure.

The baseline budget for park maintenance, repair and restoration does not take into account, nor is it adequate to fund future park modifications or maintenance associated with new parks and programs. Response: The CCSD partially agrees with this finding. The CCSD agrees that L&L funding is not intended to directly support recreational programs. The CCSD disagrees that all park maintenance is not adequate to fund park modifications or maintenance. The CCSD approves a budget at a level which protects the long-term sustainability of each benefit zone fund. As such many of the benefits zones were created with long term asset replacement in mind. This accounts for the higher assessment rates. The CCSD's Capital Improvement Plan ("CIP") is in place to ensure a level of rehabilitation and replacement is conducted based on the asset condition and available funding.

CCSD's practice of attempting to increase voter understanding and acceptance of financial responsibility for the parks program through various outreach Community Services District <b>Enriching Community - Saving Lives</b> Cosumnes Community Services District, 2019-2020 Grand Jury Response, efforts has had uneven results in terms of gaining greater voter participation and potentially influencing additional funding for this program. Response: The CCSD agrees with this finding.

The City of Elk Grove and CCSD have not collaborated effectively to reform and restructure the system. Response: The CCSD disagrees with this finding. Oversite and implementation of the Landscape & Lighting assessment districts are the responsibility of the CCSD. The City has been an active partner in addressing future park needs in the Laguna Ridge and South East Planning Area through the use of a City administered Community Facilities District ("CFD"), but the reform and restructure of the L&L assessment funding is not the responsibility of the City.