Staff Report
City Council
Item No. 5.A
Meeting Date: May 13, 2026
From: Kevin Biersack, Financial Services Director
Title: Annual Renewal of the Lighting and Landscaping District Budget for Fiscal Year 2026/2027
RECOMMENDATION:
City Council 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 by property owners.
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 through 54, non-sequential).
The 1972 Act provides assessments may be levied annually. Proposition 218 laws provide assessment increase limitations. Assessments for labor, material and utility increases cannot exceed an amount greater than the Bureau of Labor Statistics (BLS) Consumer Price Index (CPI) for the previous year. If increases exceed the CPI limitations or if the scope of the work accomplished by the LLD Zone were to change, re-balloting would be required. Under the preliminary Engineer’s Report, there are no LLD Zone levy increases exceeding the CPI limitation nor are there any scope changes being proposed for any of the zones.
DISCUSSION:
As stated in the recommendation above, the prescribed process includes City Council adopting three (3) resolutions: Initiation, Intent, and Preliminary Approval. To meet the time requirements to levy the parcels for the FY 2026-2027 tax year, the resolutions need to be approved by May 13, 2026. A Public Hearing will then be scheduled on June 10, 2026, duly published and made available at least 10 days prior to the Public Hearing. The Final Engineer’s Report and Levy for the LLD Zones 1 through 54 (non-sequential) will be presented at the June 10 th 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:
In the most recent biennial budget for the second year (Fiscal Year (FY) 2026-2027), the Landscape and Lighting Fund (261) identified budget revenues of $372,385 and budgeted expenditures of $468,317. After meeting with the Public Works/Maintenance and reviewing current year (2025/2026) versus planned activities in the upcoming year (2026/2027) and using existing reserves, the attached Preliminary Engineer’s Report has FY 2026/2027 projected revenues totaling $350,960 and associated expenditures totaling $465,814. As a result, proposed budget adjustments in the LLD Fund (261) are identified below.
FY 2026-27 Adopted
Budget
FY 2026-27 Engineer's
Estimate
FY 2026-27 Budget
Adjustment
Revenues $ 372,385.00 $ 350,960.00 $ (21,425.00) Expenditures $ 468,317.00 $ 465,814.00 $ (2,503.00) In the Preliminary Engineer’s Report, there are no LLD zones projected to have a negative balance at the beginning or end of FY 2026/2027, while striving to ensure there are adequate reserves in each benefit zone. Two of the zones (16 and 17) previously provided for a 100% contribution from the City’s General Fund for the maintenance of public parks, Century Park and Panorama Park, respectively. These parks (along with Esperanza, Ocotillo and the Dennis Keats Soccer Park) are now funded by the Measure W Fund (151) and are maintained by the Desert Recreation District (DRD).
Separately, the arterial streetlights in zones 16 and 17 are funded with a 50% contribution from the City's General Fund.
FISCAL
YEAR
DESCRIPTION GENERAL
LEDGER
ACCOUNT
CODES
PROJECT
CODE
AMOUNT ONE TIME or
ONGOING
2026-2027 LLD Budget 261-900-910-
911-6500-6571 M011XX $ (21,425.00) One Time
2026-2027 LLD Budget 261-900-910-
911-8300-8301 M011XX $ (2,503.00) One Time
FIVE-YEAR STRATEGIC PLAN:
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 implementing prudent fiscal policies and transparent financial practices.
ATTACHMENTS:
1. FY 2027 LLD Initiation Resolution
2. FY 2027 LLD Intention Resolution
3. FY 2027 LLD Preliminary Approval Engineer’s Report Resolution
4. FY 2027 Preliminary Engineer’s Report