Staff Report
City Council
Item No. {{section.number}}.C
Meeting Date: May 14, 2025
From: Kevin Biersack, Financial Services Director
Title: Annual Renewal of the Lighting and Landscaping District Budget for Fiscal Year 2025/2026
RECOMMENDATION:
To adopt three resolutions to renew the annual assessments with Street Lighting and Landscape Maintenance District No. 1 (Zones 1 through 54, non-sequential) BACKGROUND:
In August 2001, City Council adopted Res. 2001-57 approving the formation of an assessment district created under the Street Landscaping and Lighting Maintenance District Act of 1972. The original district was initiated with six proposed benefit zones, but after the required Proposition 218 ballot process, only four benefit zones were approved. Since the initial formation, annexations of additional zones have been approved by City Council and passed by property owners through the Proposition 218 ballot process, making a total of sixteen (16) current zones (Zones 1 thru 54, non-sequential).
The 1972 Act provides that assessments may be levied annually. Proposition 218 law provides assessment increase limitations. Assessments for labor, material and utility increases cannot exceed an amount greater than the Consumer Price Index (CPI) for the previous year. Re-balloting is required if increases exceed the CPI limitations or if the scope of work accomplished by the LLD Zone were to change. Under the preliminary engineer’s report, there are no LLD Zone levy increases exceeding the CPI limitation nor are there any scope changes as currently proposed.
DISCUSSION:
As stated in the recommendation above, the prescribed process includes the City Council adopting resolutions. To meet the time requirements to levy the parcels for the FY 2025- 2026 tax year, the resolutions need to be approved by May 14, 2025. A public hearing will be scheduled on June 25, 2025, duly published and made available at least 10 days prior to the public hearing. The final engineer’s report and levy for LLD Zones 1 through 54 (non- sequential) will be presented at the June 25th meeting. At that time, the Council shall be passing a resolution approving the engineer’s report and a resolution regarding the establishment of the maximum assessment and ordering the levy and collection of the assessment.
FISCAL IMPACT:
Final acceptance of the engineer’s report and the resolution ordering the levy and collection of assessment will allow the City to collect the appropriate levies from the parcel owners for these 16 LLD zones. Two of these LLD zones previously provided for a 100% contribution from the city’s General Fund for the maintenance of public parks (Century Park and Panorama Park). Beginning Fiscal Year 2025/2026, the parks will be maintained by the Desert Recreation District (DRD). In addition, the arterial streetlights in these zones are funded with a 50% contribution from the city's General Fund.
FIVE-YEAR STRATEGIC PLAN:
This action will further Goal C – Fiscal Stability and Sustainability Objective - Cathedral City has economically prospered by facilitating the investment of private dollars in high quality development which benefits the community. We remain financially solvent by instituting prudent fiscal policies and transparent financial practices.
ATTACHMENTS:
1. FY 2026 LLD Initiation Resolution
2. FY 2026 LLD Intention Resolution
3. FY 2026 LLD Preliminary Approval Engineer's Report Resolution
4. FY 2026 Preliminary Engineer’s Report