Staff Report
City Council
Item No. 4.B
Meeting Date: June 10, 2026
From: Kevin Biersack, Financial Services Director
Title: Annual Renewal of the Lighting and Landscaping District Budget for Fiscal Year 2026/2027
RECOMMENDATION:
Hold a public hearing, adopt resolutions approving the final engineer's report and order the levy and collection of annual assessments for the sixteen (16) existing benefit zones for the annual renewal of the Lighting and Landscaping District Budget for fiscal year (FY) 2026/2027.
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 law provides 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:
Under the final engineer’s report proposed for approval with this agenda item, no LLD Zone levy increases exceed the current CPI limitation. The prescribed process included the City Council previously adopting resolutions on May 13, 2026, which included scheduling a public hearing date for June 10, 2026. The public hearing was duly published and made available on or prior to May 31, 2026. The final engineer's report and Levy for LLD Zones 1 through 54 is presented in the attached report. After the public hearing is closed, the Council may pass 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. Final acceptance of the engineer's report and the resolution ordering the levy and collection of assessment will allow the County to assess the appropriate levies on the FY 2026/2027 tax bills.
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 (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. Funding for these parks, as well as Esperanza, Ocotillo, and Soccer, now come from the Measure W Fund (151), with park maintenance handled 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:
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 Public Hearing & Ordering the Levy Resolution
2. FY 2027 LLD Final Engineer's Report Resolution
3. FY 2027 LLD Final Engineer's Report