Agenda packet, regular meeting, fourth session — Citrus Heights City Council Meetings, June 24, 2026

CITY OF CITRUS HEIGHTS

CITY COUNCIL
Special and Regular Meetings of Wednesday, June 24, 2026 City Hall Council Chambers 6360 Fountain Square Drive, Citrus Heights, CA Teleconference Location – The Westin Rancho Mirage, 71333 Dinah Shore Dr., Rancho Mirage, CA 92270 5:00 PM SPECIAL MEETING
6:00 PM REGULAR MEETING
This meeting will be conducted in accordance with the Brown Act, Government Code Section 54953, Teleconferencing. Any member of the public may attend this meeting either at the Council Chambers or at the teleconference location.

HOW TO PARTICIPATE:

The City of Citrus Heights welcomes your interest and involvement in the City’s legislative process. The Council may take up any agenda item at any time, regardless of the order listed. If you wish to address the Council during the meeting, please fill out a Speaker Identification Sheet and give it to the City Clerk before the item is heard. When you are called upon to speak, step forward to the podium and state your name for the record. Normally, speakers are limited to three (3) minutes each. The Mayor has the discretion to lengthen or shorten the allotted times. Alternatively, you may submit your comment by 4:00 p.m. on the meeting day by completion of an online Speaker Card at https://www.citrusheights.net/FormCenter/City -Council-MeetingsSpeaker -Card- 30. Written public comments shall be limited to 250 words or less. Each comment will be read aloud by the City Clerk.

The City provides three ways to watch a City Council Meeting.

LEVINE ACT:

The Levine Act (Government Code Section 84308) requires parties to a proceeding before the City of Citrus Heights involving a license, permit or other entitlement for use to disclose any contribution over $500 made to a City elected or appointed officer (including Council Members and Planning Commissioners) within the 12 months before and 12 months after the City decision, and are prohibited from making, participating in, or using their official position to influence the decision.

June 24, 2026 City Council Agenda Packet
06-24- 26 SPECIAL AND REGULAR AGENDA PACKET (CORRECTED).PDF

CALL SPECIAL MEETING TO ORDER

1. Roll Call: Council Members: Karpinski - Costa, Nelson, Schaefer, Middleton, Lopez - Taff

PUBLIC COMMENT

CLOSED SESSION

2. CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to California Government Code Section 54957.6
Agency designated representatives: Ashley Feeney, City Manager, Ryan Jones, City Attorney, and Patrick Clark, Negotiator Employee Organization: Citrus Heights Police Officers Association, Citrus Heights Police Employees Association, and unrepresented employees

REPORT OUT OF CLOSED SESSION

ADJOURNMENT

CALL REGULAR MEETING TO ORDER

1. Flag Salute

2. Roll Call: Council Members: Karpinski - Costa, Nelson, Schaefer, Middleton, Lopez - Taff

3. Video Statement

APPROVAL OF AGENDA

PRESENTATIONS

4. Proclamation Of The City Of Citrus Heights Recognizing The “America The Entrepreneurial ” Campaign

5. Proclamation Of The City Of Citrus Heights Recognizing Trust Barbershop As The 2026 Business Of Distinction Pride Of Place Award Recipient

6. Presentation By The Sacramento Municipal Utility District (SMUD) On Its Tree Maintenance Program

7. Presentation By The Economic Development And Community Engagement Department On The Youth Engagement Survey

PUBLIC COMMENT
Members of the public are entitled to address the City Council concerning any item within the City Council ’s subject matter jurisdiction. Pursuant to the Brown Act, the City Council is prohibited from discussing or acting on any item raised during “ Public Comment” not appearing on the posted agenda.

COMMENTS BY COUNCIL MEMBERS AND REGIONAL BOARD UPDATES

CONSENT CALENDAR
It is recommended that all consent items be acted on simultaneously unless separate discussion and/or action are requested by a Council Member.

8. SUBJECT: Approval Of Minutes
RECOMMENDATION: Approve the Minutes of the Regular Meeting of April 8, 2026

9. SUBJECT: Initiate Proceedings For Fiscal Year 2026/2027 Annual Update For Landscape Maintenance Assessment District 97- 01 (Zones 1, 2, 3, & 4) STAFF REPORT: R. Cave / L. Blomquist
RECOMMENDATION: Staff recommends the City Council adopt the following resolutions in the order listed:
a. Resolution No. 2026- ___ , A Resolution of the City Council of the City of Citrus Heights, California, to Initiate Proceedings Pursuant to the Landscaping and Lighting Act of 1972 for Landscape Maintenance Assessment District No. 97-01 (Zones 1, 2, 3, & 4); and b. Resolution No. 2026- ___, A Resolution of Intention of the City Council of the City of Citrus Heights, California, to Levy and Collect Assessments for Fiscal Year 2026/2027 for Landscape Maintenance Assessment District No. 97-01 (Zones 1, 2, 3, and 4).

10. SUBJECT: Initiate Proceedings For Fiscal Year 2026/2027 Annual Update Landscape Maintenance Assessment Districts 98-01, 98 -02 (Zones 1, 2, 3 & 4) And 03 -01 (Zones 1, 2 & 3) STAFF REPORT: R. Cave / L. Blomquist
RECOMMENDATION: Staff recommends the City Council adopt the following resolutions in the order listed:
a. Adopt Resolution No. 2026-___,A Resolution of the City Council of the City of Citrus Heights, California, to Initiate Proceedings Pursuant to the Landscaping and Lighting Act of 1972 for Landscape Maintenance Assessment District No. 98- 01; and b. Adopt Resolution No. 2026-___, A Resolution of the City Council of the City of Citrus Heights, California, to Initiate Proceedings Pursuant to the Landscaping and Lighting Act of 1972 for Landscape Maintenance Assessment District No. 98 -02, Zones 1, 2, 3 and 4; and c. Adopt Resolution No. 2026-___, A Resolution of the City Council of the City of Citrus Heights, California, to Initiate Proceedings Pursuant to the Landscaping and Lighting Act of 1972 for Landscape Maintenance Assessment District No. 03 -01, Zones 1, 2 and 3; and d. Adopt Resolution No. 2026-___, A Resolution of Intention of the City Council of the City of Citrus Heights, California, to Levy and Collect Assessments for Fiscal Year 2026/2027 for Landscape Maintenance Assessment District No. 98- 01; and e. Adopt Resolution No. 2026-___, A Resolution of Intention of the City Council of the City of Citrus Heights, California, to Levy and Collect Assessments for Fiscal Year 2026/2027 for Landscape Maintenance Assessment District No. 98- 02, Zones 1, 2, 3 and 4; and f. Adopt Resolution No. 2026 -___, A Resolution of Intention of the City Council of the City of Citrus Heights, California, to Levy and Collect Assessments for Fiscal Year 2026/2027 for Landscape Maintenance Assessment District No. 03-01, Zones 1, 2 and 3.

11. SUBJECT: Citrus Heights Lighting Assessment District – Initiate Proceedings For Fiscal Year 2026/2027 Annual Update STAFF REPORT: R. Cave / L. Blomquist
RECOMMENDATION: Staff recommends the City Council adopt the following resolutions in the order listed:
a. Adopt Resolution No. 2026-___, A Resolution of the City Council of the City of Citrus Heights, California, to Initiate Proceedings Pursuant to the Landscaping and Lighting Act of 1972 for the Citrus Heights Lighting District; and b. Adopt Resolution No. 2025-___, A Resolution of Intention of the City Council of the City of Citrus Heights, California, to Levy and Collect Assessments for Fiscal Year 2026/2027 for the Citrus Heights Lighting District.

12. SUBJECT: Review The Sacramento Stormwater Quality Partnership Program And Authorize Fiscal Year 2026/2027 Expenditures STAFF REPORT: R. Cave / L. Blomquist / D. Kehrer
RECOMMENDATION: Adopt Resolution No. 2026 -___, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager or Designee to Expend Stormwater Funds for the City of Citrus Heights’ Shared Cost of Joint Implemented Municipal Separate Storm Sewer System Requirements with the Sacramento Stormwater Quality Partnership

13. SUBJECT: Approval Of Master Services Agreement With Hinderliter De Llamas And Associates (HdL) For Sales And Use Tax Analytics And Related Revenue Services STAFF REPORT: S. Talwar
RECOMMENDATION: Adopt Resolution No. 2026 -___, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute the Agreement Between the City of Citrus Heights and Hinderliter de Llamas and Associates (HdL) for Sales and Use Tax Services

PUBLIC HEARINGS

14. SUBJECT: Compliance With Assembly Bill 2561/Government Code Section 3502.3 Regarding Vacancies, Recruitment And Retention Efforts STAFF REPORT: S. Talwar / M. Rojas
RECOMMENDATION: Staff recommends the City Council Receive and File the Presentation.

REGULAR CALENDAR

15. SUBJECT: Fiscal Years 25/26 And 26/27 Mid-Cycle Budget Review, Financial Forecast Update And Appropriations Limit For Fiscal Year 26/27 STAFF REPORT: S. Talwar / D. Jenkins
RECOMMENDATION: Staff recommends the City Council:
a. Adopt Resolution No. 2026-____ , A Resolution of the City Council of the City of Citrus Heights, California, Approving Amendments to the Fiscal Year 2026/2027 Budget; and b. Adopt Resolution No. 2026-____ , A Resolution of the City Council of the City of Citrus Heights, California, Establishing an Appropriations Limit for Fiscal Year 2026/2027.

ITEMS REQUESTED BY COUNCIL MEMBERS / FUTURE AGENDA ITEMS

CITY MANAGER ITEMS

ADJOURNMENT
AMERICANS WITH DISABILITIES ACT:

If you need a disability -related modification or accommodation, to participate in this meeting, please contact the City Clerk’s Office 916 - 725-2448, [email protected], or City Hall 6360 Fountain Square Drive at least 48 hours prior to the meeting. TDD: California Relay Service 7 -1-1.

WRITINGS RECEIVED AFTER AGENDA POSTING:

Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection during normal business hours at City Hall, located at 6360 Fountain Square Drive. Audio/Visual presentation material must be provided to the City Clerk ’s Office at least 48 hours prior to the meeting. Email subscriptions of the agenda are available online by signing up with the City’s Notify Me service.

IN PERSON ONLINE ON TELEVISION
City Council Meetings take place in the City Hall Council Chambers. Watch the livestream and replay past meetings on the City website. Watch live and replays of meetings on Sac Metro Cable, Channel 14.

Documents:

City Council meetings take place in
the City Hall Council Chambers.

MariJane Lopez-Taff, Mayor
Porsche Middleton, Vice Mayor
Dr. Jayna Karpinski-Costa, Council Member
Kelsey Nelson, Council Member
Tim Schaefer, Council Member

CITY OF CITRUS HEIGHTS

CITY COUNCIL
Special and Regular Meetings of Wednesday, June 24, 2026 City Hall Council Chambers, 6360 Fountain Square Dr., Citrus Heights, CA 95621 Teleconference Location – The Westin Rancho Mirage, 71333 Dinah Shore Dr., Rancho Mirage, CA 92270 Special Meeting 5:00 p.m.

Regular Meeting 6:00 p.m.

This meeting will be conducted in accordance with the Brown Act, Government Code Section 54953, Teleconferencing. Any member of the public may attend this meeting either at the Council Chambers or at the teleconference location.

HOW TO PARTICIPATE:

The City of Citrus Heights welcomes your interest and involvement in the City’s legislative process. The Council may take up any agenda item at any time, regardless of the order listed. If you wish to address the Council during the meeting, please fill out a Speaker Identification Sheet and give it to the City Clerk before the item is heard. When you are called upon to speak, step forward to the podium and state your name for the record. Normally, speakers are limited to three (3) minutes each. The Mayor has the discretion to lengthen or shorten the allotted times. Alternatively, the public may submit written comments by 4:00 p.m. on the meeting day by completion of an online Speaker Card at https://www.citrusheights.net/FormCenter/City-CouncilMeetings-Speaker-Card-30. Written comments will not be read during the City Council meeting but will be forwarded to all Council Members and become part of the public record.

The City provides three ways to watch a City Council meeting.

IN PERSON ONLINE ON TELEVISION
LEVINE ACT:

June 19, 2026
_______________________
Amy Van, City Clerk
Watch the livestream and replay past
meetings on the City website.

Watch live and replays of meetings
on Sac Metro Cable, Channel 14.

Citrus Heights City Council Wednesday, June 24, 2026

Page 2 of 5 ends

SPECIAL CITY COUNCIL MEETING
5:00 PM

CALL SPECIAL MEETING TO ORDER

1. Roll Call: Council Members: Karpinski-Costa, Nelson, Schaefer, Middleton, Lopez-Taff

PUBLIC COMMENT

CLOSED SESSION

2. CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to California Government Code Section 54957.6
Agency designated representatives: Ashley Feeney, City Manager, Ryan Jones, City Attorney, and Patrick Clark, Negotiator
Employee Organization: Citrus Heights Police Officers Association, Citrus Heights Police Employees Association, and unrepresented employees

REPORT OUT OF CLOSED SESSION

ADJOURNMENT

CALL REGULAR MEETING TO ORDER

1. Flag Salute

2. Roll Call: Council Members: Karpinski-Costa, Nelson, Schaefer, Middleton, Lopez-Taff

3. Video Statement

APPROVAL OF AGENDA

PRESENTATIONS

4. Proclamation of the City of Citrus Heights Recognizing the “America the Entrepreneurial” Campaign

5. Proclamation of the City of Citrus Heights Recognizing Trust Barbershop as the 2026 Business of Distinction Pride of Place Award Recipient

6. Presentation by the Sacramento Municipal Utility District (SMUD) on its Tree Maintenance Program

REGULAR CITY COUNCIL MEETING
6:00 PM
Citrus Heights City Council Wednesday, June 24, 2026

Page 3 of 5 ends

7. Presentation by the Economic Development and Community Engagement Department on the Youth Engagement Survey

PUBLIC COMMENT
This is an opportunity to make a public comment on non-agenda items. Pursuant to the Brown Act, the City Council is prohibited from discussing or acting on any item raised during “Public Comment” not appearing on the posted agenda.

COMMENTS BY COUNCIL MEMBERS AND REGIONAL BOARD UPDATES
CONSENT CALENDAR (Estimated Start Time 7:00 p.m.)
It is recommended that all consent items be acted on simultaneously unless separate discussion and/or action are requested by a Council Member.

8. SUBJECT: Approval of Minutes
RECOMMENDATION: Approve the Minutes of the Regular Meeting of April 8, 2026

9. SUBJECT: Initiate Proceedings for Fiscal Year 2026/2027 Annual Update for Landscape Maintenance Assessment District 97-01 (Zones 1, 2, 3, & 4) STAFF REPORT: R. Cave / L. Blomquist
RECOMMENDATION: Staff recommends the City Council adopt the following resolutions in the order listed:
a. Resolution No. 2026-___ , A Resolution of the City Council of the City of Citrus Heights, California, to Initiate Proceedings Pursuant to the Landscaping and Lighting Act of 1972 for Landscape Maintenance Assessment District No. 97-01 (Zones 1, 2, 3, & 4); and b. Resolution No. 2026-___, A Resolution of Intention of the City Council of the City of Citrus Heights, California, to Levy and Collect Assessments for Fiscal Year 2026/2027 for Landscape Maintenance Assessment District No. 97-01 (Zones 1, 2, 3, and 4).

10. SUBJECT: Initiate Proceedings for Fiscal Year 2026/2027 Annual Update Landscape Maintenance Assessment Districts 98-01, 98-02 (Zones 1, 2, 3 & 4) and 03-01 (Zones 1, 2 & 3) STAFF REPORT: R. Cave / L. Blomquist
RECOMMENDATION: Staff recommends the City Council adopt the following resolutions in the order listed:
a. Adopt Resolution No. 2026-___,A Resolution of the City Council of the City of Citrus Heights, California, to Initiate Proceedings Pursuant to the Landscaping and Lighting Act of 1972 for Landscape Maintenance Assessment District No. 98-01; and b. Adopt Resolution No. 2026-___, A Resolution of the City Council of the City of Citrus Heights, California, to Initiate Proceedings Pursuant to the Landscaping and Lighting Act of 1972 for Landscape Maintenance Assessment District No. 98-02, Zones 1, 2, 3 and 4; and c. Adopt Resolution No. 2026-___, A Resolution of the City Council of the City of Citrus Heights, California, to Initiate Proceedings Pursuant to the Landscaping and Lighting Act of 1972 for Landscape Maintenance Assessment District No. 03-01, Zones 1, 2 and 3; and Citrus Heights City Council Wednesday, June 24, 2026

Page 4 of 5 ends

d. Adopt Resolution No. 2026-___, A Resolution of Intention of the City Council of the City of Citrus Heights, California, to Levy and Collect Assessments for Fiscal Year 2026/2027 for Landscape Maintenance Assessment District No. 98-01; and e. Adopt Resolution No. 2026-___, A Resolution of Intention of the City Council of the City of Citrus Heights, California, to Levy and Collect Assessments for Fiscal Year 2026/2027 for Landscape Maintenance Assessment District No. 98-02, Zones 1, 2, 3 and 4; and f. Adopt Resolution No. 2026-___, A Resolution of Intention of the City Council of the City of Citrus Heights, California, to Levy and Collect Assessments for Fiscal Year 2026/2027 for Landscape Maintenance Assessment District No. 03-01, Zones 1, 2 and 3.

11. SUBJECT: Citrus Heights Lighting Assessment District – Initiate Proceedings for Fiscal Year 2026/2027 Annual Update
STAFF REPORT: R. Cave / L. Blomquist
RECOMMENDATION: Staff recommends the City Council adopt the following resolutions in the order listed:
a. Adopt Resolution No. 2026-___, A Resolution of the City Council of the City of Citrus Heights, California, to Initiate Proceedings Pursuant to the Landscaping and Lighting Act of 1972 for the Citrus Heights Lighting District; and
b. Adopt Resolution No. 2025-___, A Resolution of Intention of the City Council of the City of Citrus Heights, California, to Levy and Collect Assessments for Fiscal Year 2026/2027 for the Citrus Heights Lighting District.

12. SUBJECT: Review the Sacramento Stormwater Quality Partnership Program and Authorize Fiscal Year 2026/2027 Expenditures
STAFF REPORT: R. Cave / L. Blomquist / D. Kehrer
RECOMMENDATION: Adopt Resolution No. 2026-___, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager or Designee to Expend Stormwater Funds for the City of Citrus Heights’ Shared Cost of Joint Implemented Municipal Separate Storm Sewer System Requirements with the Sacramento Stormwater Quality Partnership

13. SUBJECT: Approval of Master Services Agreement with Hinderliter de Llamas and Associates (HdL) for Sales and Use Tax Analytics and Related Revenue Services STAFF REPORT: S. Talwar
RECOMMENDATION: Adopt Resolution No. 2026-___, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute the Agreement Between the City of Citrus Heights and Hinderliter de Llamas and Associates (HdL) for Sales and Use Tax Services
PUBLIC HEARINGS (Estimated Start Time 7:05 p.m.)

14. SUBJECT: Compliance with Assembly Bill 2561/Government Code Section 3502.3 regarding Vacancies, Recruitment and Retention Efforts
Citrus Heights City Council Wednesday, June 24, 2026

Page 5 of 5 ends

STAFF REPORT: S. Talwar / M. Rojas
RECOMMENDATION: Staff recommends the City Council Receive and File the Presentation.

REGULAR CALENDAR (Estimated Start Time 7:20 p.m.)

15. SUBJECT: Fiscal Years 25/26 and 26/27 Mid-Cycle Budget Review, Financial Forecast Update and Appropriations Limit for Fiscal Year 26/27
STAFF REPORT: S. Talwar / D. Jenkins
RECOMMENDATION: Staff recommends the City Council:
a. Adopt Resolution No. 2026-____ , A Resolution of the City Council of the City of Citrus Heights, California, Approving Amendments to the Fiscal Year 2026/2027 Budget; and b. Adopt Resolution No. 2026-____ , A Resolution of the City Council of the City of Citrus Heights, California, Establishing an Appropriations Limit for Fiscal Year 2026/2027.

ITEMS REQUESTED BY COUNCIL MEMBERS / FUTURE AGENDA ITEMS

CITY MANAGER ITEMS

ADJOURNMENT
AMERICANS WITH DISABILITIES ACT:

If you need a disability-related modification or accommodation, to participate in this meeting, please contact the City Clerk’s Office 916-725-2448, [email protected], or City Hall 6360 Fountain Square Drive at least 48 hours prior to the meeting. TDD: California Relay Service 7-1-1.

WRITINGS RECEIVED AFTER AGENDA POSTING:

Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection during normal business hours at City Hall, located at 6360 Fountain Square Drive. Audio/Visual presentation material must be provided to the City Clerk’s Office at least 48 hours prior to the meeting. Email subscriptions of the agenda are available online by signing up with the City’s Notify Me service.

CITY OF CITRUS HEIGHTS

CITY COUNCIL

MINUTES
Regular Meeting of Wednesday, April 8, 2026
City Hall Council Chambers, 6360 Fountain Square Dr., Citrus Heights, CA 95621 Teleconference Location – 6412 Oakcreek Way, Citrus Heights, CA 95621

CALL REGULAR MEETING TO ORDER
The regular meeting was called to order at 6:03 p.m. by Mayor Lopez-Taff.

1. The Flag Salute was led by Vice Mayor Middleton.

2. Roll Call: Council Members present: Karpinski-Costa, Nelson, *Schaefer, Middleton, Lopez-Taff Council Members absent: None
Staff Members present: Blomquist, Feeney, Huber, Jones, Kempenaar, Van and department directors.
*Note: Council Member Schaefer participated via teleconferencing, pursuant to Government Code Section 54953. All votes taken during this teleconferenced meeting were conducted by roll call.

3. The video statement was read by City Clerk Van.

APPROVAL OF AGENDA
ACTION: On a motion by Council Member Schaefer, seconded by Vice Mayor Middleton, the City Council approved the agenda.

AYES: Karpinski-Costa, Nelson, Schaefer, Middleton, Lopez-Taff NOES: None
ABSENT: None

PRESENTATIONS

4. Proclamation of the City of Citrus Heights Proclaiming April 19-25, 2026 as National Volunteer Week
Communications Officer Brown invited all volunteers to the podium who participated in the Volunteer Reception that immediately preceded the City Council meeting. Mayor Lopez-Taff read and presented the proclamation to City volunteers, Neighborhood Area board members, and representatives from community organizations. Volunteers introduced themselves and discussed their roles.

5. Proclamation of the City of Citrus Heights Proclaiming April 19-25, 2026 as National Library Week
Council Member Nelson read and presented the proclamation to Sacramento Public Library Director and CEO Peter Coyl, Chief Operations Officer Jarrid Keller, Chief Public Services Officer Selwa Shamy, and Sylvan Oaks Library Branch Supervisor Suzanne Clerkin.

ITEM 8
Citrus Heights City Council Wednesday, April 8, 2026

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6. Proclamation of the City of Citrus Heights Proclaiming April 12-18, 2026 as National Public Safety Telecommunicators Week
Vice Mayor Middleton read and presented the proclamation to members of the Citrus Heights Police Department 9-1-1 Communications Center Team.

7. Proclamation of the City of Citrus Heights Proclaiming April 12-18, 2026 as National Animal Care & Control Appreciation Week
Council Member Karpinski-Costa read and presented the proclamation to members of the Citrus Heights Police Department Animal Services Division.

8. Police Department Annual Report
Chief of Police Turcotte presented the 2025 Police Department Annual Report. He noted some of the promotions, retirements and awards recognition that have occurred over the last twelve months. He provided Police Department statistics, which were down in every major category of crime. He noted that 2025 represents the lowest year for crime in the City’s entire police history, decreasing by 54.5% since 2007. He reported that traffic citations and DUI arrests decreased and the department received over 84,000 calls for service. He highlighted additional statistics and unit accomplishments.

Mayor Lopez-Taff thanked department staff and commended them for all they do. City Council questions and comments followed. City Manager Feeney expressed his gratitude for the department’s work and thanked Chief Turcotte for his leadership.

9. Presentation by the General Services Department – Capital Improvement Projects Update City Engineer Blomquist presented an update on projects including the Auburn Boulevard Complete Streets Phase 2, which is on track to be completed in August 2026. She discussed the 3-year Pavement Preservation Plan: the 2025 Accessibility & Drainage project is complete, and the 2025 Road Resurfacing project is underway. The 2026/2027 Accessibility and Drainage project construction is anticipated to begin in September 2026. The Old Auburn Road Complete Streets project is in final design. The Roseville/Butternut & Systemic Intersection Improvements is anticipated to be completed in Fall 2026. The Arcade Cripple Creek Trail Extensions are in the design phase and the San Juan Complete Streets project has been broken up into three phases. She reviewed other upcoming projects, including the Gateway Activation Project.

City Council comments and questions followed. City Manager Feeney expressed appreciation for Engineer Blomquist and team’s hard work.

PUBLIC COMMENT
Zeena Khan spoke about the Shadowbrook Post Acute facility and encouraged its opening.

Elena Thomason spoke about the Citrus Heights Low Vision Support Group and distributed flyers.

Mayor Lopez-Taff invited the students in the audience to the podium to introduce themselves. All of the students represented the CIVITAS program at Rio Americano High School.

ITEM 8
Citrus Heights City Council Wednesday, April 8, 2026

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COMMENTS BY COUNCIL MEMBERS AND REGIONAL BOARD UPDATES
Council Member Schaefer expressed his gratitude to the City and his fellow Council members for their support and filling in for him during his health challenges. He highlighted the need for blood donations and announced an upcoming blood drive.

Council Member Nelson attended the Food and Agriculture policy team meeting for the Capitol-to-Capitol (Cap-to-Cap) trip with the Sacramento Metropolitan Chamber of Commerce. She participated in the annual Strategic Planning Session with the City Council and Executive Team.

Council Member Karpinski-Costa attended a Sacramento-Yolo Mosquito & Vector Control District Board meeting. She attended the annual Strategic Planning Session. She went to the San Juan Education Foundation’s celebration of raising $1 Million. She went to the Citrus Heights Community Marching Band’s spaghetti feed. She attended the American Mosquito Control Association’s convention in Portland, Oregon. She participated the Lunch & Learn and tour of the Sacramento Food Bank with Vice Mayor Middleton. She attended a Sacramento Local Agency Formation Commission (LAFCo) meeting and a comedy night fundraiser for FieldHaven Feline Center. She attended a Sacramento Area Sewer District meeting; however, she reported that there was not a quorum, so important business could not be conducted. She encouraged the Neighborhood Areas to register for the Neighborhoods USA (NUSA) virtual conference and announced some of the session topics.

Vice Mayor Middleton discussed Sacramento Food Bank’s Lunch & Learn. She went to the Kiwanis Easter Egg Hunt and Career Day at Mesa Verde High School.

Mayor Lopez-Taff reported on attending the monthly briefing with the Sacramento Regional Transit District (SacRT) executive team. She attended a tour of West Sacramento with the Sacramento Area Council of Governments (SACOG), which was followed by their regular meeting. She attended Assemblymember Hoover’s community meeting. She went to the SacRT Board meeting and discussed the district’s preparations for transportation advocacy on the Cap-to-Cap trip. She attended the Sacramento Metropolitan Air Quality Management District (SMAQMD) Board meeting. She participated in a meeting and policy briefing of the League of California Cities’ (Cal Cities) Environmental Quality Policy Committee. She went to the ribbon cutting ceremony for Grocery Outlet. She attended the Cap-to-Cap Workforce and Education Committee planning meeting and the comedy night fundraiser for FieldHaven Feline Center. She thanked Communications Officer Brown for planning and emceeing the Volunteer Appreciation Reception.

CONSENT CALENDAR

10. SUBJECT: Approval of Minutes
RECOMMENDATION: Approve the Minutes of the Special and Regular Meetings of February 11, 2026

11. Pulled for a separate vote.

12. SUBJECT: Primrose Drive and Various Repairs Project Award of Construction Contract STAFF REPORT: R. Cave / L. Blomquist
RECOMMENDATION: Adopt Resolution No. 2026-018, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute an Agreement with ITEM 8
Citrus Heights City Council Wednesday, April 8, 2026

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All-American Construction, Inc. for Construction of the Primrose Drive and Various Repairs Project and Finding the Project is Exempt from the California Environmental Quality Act (CEQA) Under Section 15301

13. SUBJECT: Resolution Authorizing Applications for Grant Funding from the Sacramento Area Council of Governments (SACOG) 2026 Federal Funding Programs STAFF REPORT: R. Cave / L. Blomquist / M. Poole
RECOMMENDATION: Adopt Resolution No. 2026-019, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the Submittal of Applications for Grant Funding from the Sacramento Area Council of Governments (SACOG) 2026 Federal Funding Programs and Identifying Priority Projects for the Various Funding Programs

14. SUBJECT: Sunrise Tomorrow Frontage Improvement Project (Sunrise Boulevard & Greenback Lane) Project GS 25-15 Professional Engineering Services Agreement STAFF REPORT: C. Kempenaar / R. Cave / M. Poole
RECOMMENDATION: Adopt Resolution No. 2026-020, A Resolution of the City Council of the City of Citrus Heights, California, Authorizing the City Manager to Execute a Professional Services Agreement with Mark Thomas & Company, Inc. for the Sunrise Tomorrow Frontage Improvement Project (Sunrise Boulevard & Greenback Lane)

15. SUBJECT: Annual Comprehensive Financial Report, Single Audit Report, and Audited Financial Statements and Compliance Report for Transportation Development Act Funds STAFF REPORT: S. Talwar / D. Jenkins
RECOMMENDATION: Receive and file the City of Citrus Heights Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2025, the City of Citrus Heights Popular Annual Financial Report for the Fiscal Year Ended June 30, 2025, the Audit Communication Letter, the Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters, the Single Audit Report for the fiscal year ended June 30, 2025, and the City of Citrus Heights Transportation Development Act (TDA) Funds Audited Financial Statements and Compliance Report for the fiscal year ended June 30, 2025

16. SUBJECT: Approval of Investment Policy Updates
STAFF REPORT: S. Talwar / D. Jenkins
RECOMMENDATION: Adopt Resolution No. 2026-021, A Resolution of the City Council of the City of Citrus Heights, California, Approving the Investment Policy and Delegating Authority to the Administrative Services Director to Invest Funds in Accordance with the Investment Policy ACTION: On a motion by Council Member Karpinski-Costa, seconded by Council Member Nelson, the City Council adopted Consent Calendar Items 10, 12, 13, 14, 15 and 16.

AYES: Karpinski-Costa, Nelson, Schaefer, Middleton, Lopez-Taff NOES: None
ABSENT: None

CONSENT CALENDAR ITEMS PULLED FOR SEPARATE VOTE

11. SUBJECT: Adoption of Annual Strategic Planning Objectives STAFF REPORT: A. Feeney
ITEM 8
Citrus Heights City Council Wednesday, April 8, 2026

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RECOMMENDATION: Adopt Resolution No. 2026-017, A Resolution of the City Council of the City of Citrus Heights, California, Adopting the Strategic Objectives for April 2026 to June 2027 Council Member Schaefer commented on Strategic Objective #15 and requested an annual budget for business recruitment along with incentive contributions from all entities that will benefit from the resulting economic expansion.

Mayor Lopez-Taff thanked the City Council, City Manager Feeney and staff teams for their hard work on the Strategic Planning Session.

ACTION: On a motion by Council Member Karpinski-Costa, seconded by Council Member Nelson, the City Council adopted Consent Calendar Item 11.

AYES: Karpinski-Costa, Nelson, Schaefer, Middleton, Lopez-Taff NOES: None
ABSENT: None

REGULAR CALENDAR

17. SUBJECT: Approval of Sunrise MarketPlace Property-Based Improvement District 2025 Annual Report
STAFF REPORT: M. Huber
RECOMMENDATION: Adopt Resolution No. 2026-022, A Resolution of the City Council of the City of Citrus Heights, California, Approving the Sunrise MarketPlace 2025 Annual Report Director Huber introduced the item and Sunrise MarketPlace Executive Director Kathilynn Carpenter presented an overview of the annual report. She discussed efforts to mitigate trespassing, vandalism and illegal dumping. She reviewed the district’s community outreach, work to promote economic development and its financials.

City Council comments and questions followed.

ACTION: On a motion by Council Member Nelson, seconded by Vice Mayor Middleton, the City Council adopted Resolution No. 2026-022, A Resolution of the City Council of the City of Citrus Heights, California, Approving the Sunrise MarketPlace 2025 Annual Report.

AYES: Karpinski-Costa, Nelson, Schaefer, Middleton, Lopez-Taff NOES: None
ABSENT: None

18. SUBJECT: Consider Policy Adoption for Public Meeting Disruption Procedures under Brown Act Amendments (SB 707)
STAFF REPORT: A. Van
RECOMMENDATION: Adopt Resolution No. 2026-023, A Resolution of the City Council of the City of Citrus Heights, California, Adopting a City Council Policy on Disruption of Telephonic or Internet Service during Public Meetings
ITEM 8
Citrus Heights City Council Wednesday, April 8, 2026

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City Clerk Van presented a summary of the significant changes to open meeting laws due to Senate Bill 707, which will become effective July 1, 2026. These include providing remote public participation via a two-way audio-visual or two-way telephonic platform; allowing remote public comment; and adopting a disruption policy in case of telephonic or internet disruption during public meetings. She provided an overview of the proposed policy, with the actions to be taken if there is a disruption and how to proceed, whether service is or is not restored.

City Council comments and questions followed.

ACTION: On a motion by Council Member Karpinski-Costa, seconded by Vice Mayor Middleton, the City Council adopted Resolution No. 2026-023, A Resolution of the City Council of the City of Citrus Heights, California, Adopting a City Council Policy on Disruption of Telephonic or Internet Service during Public Meetings
AYES: Karpinski-Costa, Nelson, Schaefer, Middleton, Lopez-Taff NOES: None
ABSENT: None

CITY MANAGER ITEMS
City Manager Feeney announced the community blood drive in support of Council Member Schaefer will take place on May 15, 2026. He announced the “Postcards from Citrus Heights” community photo contest. He discussed the Canopy Over Our Lots (COOL) grant program, an opportunity for commercial properties to receive matching funds to support increasing shade in parking areas. He announced that the free, guided Community Bike Ride celebrating May is Bike Month will be on May 7. He provided updates on locations offering free compost, including City Hall, and information on an upcoming composting workshop offered by Republic Services on April 25. He announced that an Earth Day Chip-in event is on April 22 at City Hall. The Citrus Heights Event Center will host a Volunteer Open House on April 28. The April 22nd City Council meeting has been cancelled due to attendance at Cap-to-Cap.

ITEMS REQUESTED BY COUNCIL MEMBERS / FUTURE AGENDA ITEMS

19. SUBJECT: Discussion of City’s Regulations for Temporary Signs Placed in the Public Right-ofWay STAFF REPORT: A. Van
City Clerk Van presented an overview of the City’s current regulations for temporary signs within the public right-of-way. Any sign unlawfully placed is subject to confiscation and the City has the right to recover the full costs related to removal and disposal. The current enforcement practices include routine removal; response to complaints; administrative citations for repeat or egregious violations; and education and outreach to community groups, campaigns and businesses. A surge of unlawfully placed signs tends to happen during election years. Options for City Council consideration included adjusting current regulations and enforcement measures or maintaining existing regulations and increasing public education and outreach during peak election seasons.

Council comments and questions followed. By consensus, staff was directed to maintain existing regulations and increase public education and awareness regarding all signs and placement within the public right-of-way.

ITEM 8
Citrus Heights City Council Wednesday, April 8, 2026

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Council Member Karpinski-Costa requested an agenda item for a policy stating that written public comments will be distributed but not read aloud at Council meetings. Seconded by Mayor Lopez-Taff.

Council Member Schaefer requested an agenda item for a letter of support asking the Department of Public Health for a timely review of licensing for Shadowbrook Post Acute. By consensus, the Council agreed that City Manager Feeney could draft the letter himself, without having an agenda item, as the intent is consistent with the Council’s general direction.

ADJOURNMENT
Mayor Lopez-Taff adjourned the regular meeting at 8:51 p.m.

Respectfully submitted,
__________________________
Amy Van, City Clerk
ITEM 8

CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE: June 24, 2026
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FROM: Regina Cave, General Services Director
Leslie Blomquist, City Engineer
SUBJECT: Initiate Proceedings for Fiscal Year 2026/2027 Annual Update for Landscape Maintenance Assessment District 97-01 (Zones 1, 2, 3, & 4) Recommendation
Each year, the City is required to update the assessments for its various Landscape Maintenance Assessment Districts (LMADs). In order to accomplish this, the City Council must first adopt a Resolution Initiating Proceedings for the Fiscal Year 2026/2027 update. Next, City Council must adopt a Resolution of Intention setting the time and date for a public hearing on the proposed assessments and directing staff to publish the appropriate notice of the hearing. An Engineer's Report, prepared by the City Engineer, is attached hereto and describes the levels of maintenance, outlines the proposed financial summary, and includes the Assessment Diagram for each zone in the District.

Staff recommends the City Council adopt the resolutions below, in order:

1. Resolution No. 2026-___, A Resolution of the City Council of the City of Citrus Heights, California, to Initiate Proceedings Pursuant to the Landscaping and Lighting Act of 1972 for Landscape Maintenance Assessment District No. 97-01 (Zones 1, 2, 3, & 4); and

2. Resolution No. 2026-___, A Resolution of Intention of the City Council of the City of Citrus Heights, California, to Levy and Collect Assessments for Fiscal Year 2026/2027 for Landscape Maintenance Assessment District No. 97-01 (Zones 1, 2, 3, and 4) The second resolution above also sets July 8, 2026, at 6:00 p.m., as the date and time of the Public Hearing for the proposed assessments and directs staff to give the required notice.

Strategic Plan Alignment
This item is in alignment with the following City Council priority:

Goal: “Maintain Public Infrastructure and Enhance All Modes of Transportation.” Item 9
Fiscal Impact
Assessment District 97-01, Zones 1 (Table No.1) and 2 (Table No. 2) are currently fully funded by their annual assessments as well as use of fund reserves as necessary; therefore, there is no fiscal impact to the General Fund for these zones.

Table No. 1
97-01, Zone 1 (Bridgemont)
Description FY 25/26 Actual* FY 26/27 Proposed
REVENUE:

Special Assessments Revenues $10,450.00 $10,523.00
Interest on Fund Balance (1) $1,074.53 $0.00
Total Estimated Revenues $11,524.53 $10,523.00
EXPENDITURES:

Total Estimated Expenditures $11,350.35 $10382.00 $
Annual Operating Balance $174.18 $141.20
(1) Interest earnings estimated; will reflect actuals in final report. (2) Balance transferred to Assessment Fund reserve.
(3) Assessment Fund reserves available to balance the annual operating shortfall.

Table No. 2
97-01, Zone 2 (Heather Downs)
Description FY 25/26 Actual* FY 26/27 Proposed
REVENUE:

Special Assessments Revenues $13,338.92 $13,833.40
Interest on Fund Balance (1) $879.57 $0.00
Total Estimated Revenues $14,218.49 $13,833.00
EXPENDITURES:

Total Expenditures $15,658.15 $11,100.00
Annual Operating Balance (2) -$1,439.66 $2,733.40
(1) Interest earnings estimated; will reflect actuals in final report. (2) Assessment Fund reserves available to balance the annual operating shortfall.

Historically, Zone 3 has had adequate funding to cover the annual expenditures. However, beginning in FY 19/20, Zone 3 began operating under a shortfall with insufficient revenues to offset these costs.

For FY 25/26, Zone 3 has a projected shortfall of $9,874.64. Staff’s recommendation is to utilize Gas Tax revenues (Fund 205) to cover this shortfall. For FY 26/27, the fund shortfall is expected to be approximately $4,749.60, pending the city’s cost allocation update. As costs for maintaining landscape and appurtenance continue to increase, it will be necessary to seek additional revenue Item 9
through assessment increases. These efforts are expected to be initiated following completion of the city’s cost allocation update in FY 26/27.

Table No. 3
97-01, Zone 3 (Verner Glen)
Description FY 25/26 Actual* FY 26/27 Proposed
REVENUE:

Special Assessments Revenues $6,459.20 $6,550.40
Interest on Fund Balance $0.00 $0.00
Total Estimated Revenues $6,549.20 $6,550.40
EXPENDITURES:

Total Estimated Expenditures $16,333.84 $11,300.00
Annual Operating Shortfall (1) -$9,874.64 -$4,749.60
(1) Gas Tax (Fund 205) revenue recommended to balance the annual operating shortfall.

The funding for Zone 4 does not adequately cover the maintenance costs. Historically, this Zone has had a shortfall and the city has implemented cost saving measures to try and reduce the shortfall to the greatest extent possible. However, aging irrigation systems, and increases in utility costs as well as maintenance costs continue to affect the districts operating budget. In past years, contributions from the City’s Gas Tax and General Fund revenues were used to balance Zone 4. For FY 25/26, Zone 4 has a projected shortfall of $19,637.03. Staff’s recommendation is to utilize Gas Tax revenues (Fund 205) to cover this shortfall. For FY 26/27, the fund shortfall is expected to be $14,732.50.

Efforts to seek additional revenues through assessments for this district are expected to be initiated following completion of the city’s cost allocation update in FY 26/27.

Table No. 4
97-01, Zone 4 (Creekridge)
Description FY 25/26 Actual* FY 26/27 Proposed
REVENUE:

Special Assessments Revenues $4,645.86 $4,717.50
Interest on Fund Balance $0.00 $0.00
Total Estimated Revenues $4,645.86 $4,717.50
EXPENDITURES:

Total Estimated Expenditures $24,282.89 $19,450.00
Annual Operating Shortfall (1) -$19,637.03 -$14,732.50
(1) Gas Tax (Fund 205) revenue recommended to balance the annual operating shortfall.

Item 9
Since the City first took over the LMAD 97-01 from Sacramento County in 1997, the revenues have not been adequate to cover the costs in each of the zones. Over the years, many efforts have been made to reduce costs and in some cases the city has been required to increase assessment. However, continually increasing utility rates and monthly maintenance costs as well as updated methods for allocation of the City’s overhead costs have all contributed to the increasing shortfall in Zones 3 and

4. The underlying problem is that the assessment rates (outlined in Fiscal Impact, above) have remained largely unchanged since 1996 when Proposition 218 was passed by California voters, requiring a vote of those assessed to approve an increase.

In 2000, the property owners in Zone 2 approved an immediate assessment increase and the addition of a cost-of-living increase provision to the zone. Annual expenditures in this zone have since exceeded the additional annual revenues and the cost-of-living provision will need to be implemented to ensure sufficient funding in the future.

In 2005, the property owners in Zone 3 approved a one-time assessment increase, but annual expenditures in this zone have now exceeded the additional annual revenues.

Background and Analysis
The Sacramento County Landscape Maintenance Assessment District (SCLMAD) was created in 1994 by Sacramento County to consolidate eighteen separate landscape maintenance districts into a single district with five zones. Upon incorporation, the City of Citrus Heights assumed responsibility for Zone 1, and parts of Zones 2 and 4, which fell within city limits. Assessment District 97-01 (AD 97-01) was created to incorporate these maintenance areas. Zone 3 was created in Fiscal Year 2004/2005 by the city when the original Zone 4 was split.

An Engineer’s Report has been prepared for the proposed assessments and is available for review, by the public, in the City Clerk’s Office. The Engineer’s Report summarizes the maintenance efforts and recommends levying assessments at the same level as in Fiscal Year 2024/2025 for Zones 1, 3, and 4. A 2% cost of living increase in the annual assessment per parcel is proposed for Zone 2 to maintain current levels of service and sustain existing reserves.

City Council approval of a Resolution to Initiate Proceedings is the required first step in the update process. By the Resolution of Intention, the City Council approves the Engineer’s Report for the Landscape Maintenance Assessment District 97-01, Annual Update for Fiscal Year 2026/2027, sets the date for a public hearing on the assessments and directs staff to give the required notice.

Staff recommends that July 8, 2026, at 6:00 p.m., or as soon thereafter as the matter may be heard, be set as the date for the public hearing. At that time, public comment will be received and the Council will consider and adopt a resolution adopting the assessments. Notice of this meeting will be mailed and published in accordance with State Code.

Item 9
Since the City took over AD 97-01 from the County, Zones 3 and 4 have been underfunded and as a result the City has used various funds, including General Fund and Gas Tax revenues, to cover the operating shortfall.

To eliminate the funding gap in Zone 3, an assessment increase was approved by the owners of the assessed properties in 2005 and the assessment increased from $42.50 to $80.00 per parcel. Until FY 2017/2018 the increase provided enough funds to cover the costs for maintenance and utilities leaving an account balance of a few hundred dollars each year to build reserves. However, irrigation repairs, tree maintenance, the continuing increase in utility rates, and updated methods for allocation of the City’s overhead costs have all contributed to the depletion of the existing reserves. Zone 3 continues to see a projected shortfall for FY 2026/2027.

To balance the Zone 4 budget, the City twice proposed to increase the annual assessment. In 2005 and again in 2009, the owners of properties within Zone 4 voted against a proposed increase in the annual assessment. In 2010, to reduce future subsidies, the City incorporated a xeriscaping (lowwater and maintenance) plan to eliminate some of the more labor intensive and water consuming landscape features, such as turf, and reduced the level of service on the remaining landscaping to a minimum. This shortfall was subsidized by the City’s General Fund. To eliminate future subsidies, the City reduced the frequency of maintenance as a pilot project (i.e., every 6 or 8 weeks instead of monthly). The budget for Zone 4 was balanced with a reduced maintenance schedule. However, after numerous complaints from the public of its poor appearance, a higher level of maintenance was reinstated during the FY 2011/2012 year and Zone 4 continues to see a projected shortfall in FY 2026/2027.

City Council has provided direction to staff to explore options for increasing assessment revenues for Zones 3 and 4. Upon completion of the City’s cost allocation study, expected to be finalized in 2026, staff will perform outreach to the effected property owners to advise of the ongoing shortfalls, provide details of maintenance, replacement and administrative costs, and will work to develop options with the residents to help eliminate or minimize ongoing subsidies.

Attachments
1) Resolution No. 2026-_____: A Resolution of the City Council of the City of Citrus Heights, California, to Initiate Proceedings Pursuant to the Landscaping and Lighting Act of 1972 for Landscape Maintenance Assessment District No. 97-01 (Zones 1, 2, 3 and 4). 2) Resolution No. 2026-_____: A Resolution of the City Council of the City of Citrus Heights, California, for the intention to levy and collect assessments for Fiscal Year 2026/2027 for Landscape Maintenance Assessment District No. 97-01 (Zones 1, 2, 3 and 4). 3) Engineer’s Report.

Item 9
RESOLUTION NO. 2026-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CITRUS HEIGHTS, CALIFORNIA, TO INITIATE PROCEEDINGS PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972 FOR LANDSCAPE
MAINTENANCE ASSESSMENT DISTRICT No. 97-01 (Zones 1, 2, 3 & 4) WHEREAS, in order to continue to finance the costs of maintaining and servicing landscaping and related facilities in Landscaping and Lighting Maintenance Assessment District 97-01 Zones 1, 2, 3, and 4; and to equitably distribute the costs among benefited landowners, the City Council (the “City Council”) of the City of Citrus Heights (the “City”) has decided to undertake proceedings pursuant to the Landscaping and Lighting Act of 1972, being California Streets and Highways Code Sections 22500 et seq. (the “Act”), to levy assessments for Fiscal Year 2026/2027.

NOW, THEREFORE, BE IT RESOLVED AND ORDERED by the City Council of the City of Citrus Heights hereby approve the following:

Section 1. Recitals: The foregoing recitals are true and correct and the City Council so finds and determines.

Section 2. Proposal to levy assessments: The City Council proposes to levy assessments for Fiscal Year 2026/2027 for Assessment District 97-01.

Section 3. Description of Improvements: The maintenance to be financed by assessments levied in the City of Citrus Heights Landscape Maintenance Assessment District No. 97-01 consist of street corridor landscape and open space vegetation maintenance, including tree, shrub, lawn, and ground cover care; weed control; pruning; fertilization; litter removal; tree and shrub well maintenance; and irrigation system inspections and repairs.

Section 4. Appointment of Engineer: The City Council hereby appoints the City Engineer as engineer (the “Engineer”) for all purposes of proceedings undertaken by the City with respect to the assessment district. The City Council hereby directs the Engineer to prepare and file with the City Clerk, a report for Fiscal Year 2026/2027 in accordance with Article 4 of Chapter 1 of the Act and Article XIII D, Section 4, of the California Constitution.

Section 5. Effective Date. This resolution shall become effective on and after the date of its passage.

The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 24th day of June 2026, by the following vote, to wit:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:

MariJane Lopez-Taff, Mayor
ATTEST:

Amy Van, City Clerk
Item 9
RESOLUTION 2026-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS,

CALIFORNIA, FOR THE INTENTION TO LEVY AND COLLECT
ASSESSMENTS FOR FISCAL YEAR 2026/2027 FOR LANDSCAPE
MAINTENANCE ASSESSMENT DISTRICT No. 97-01 (ZONES 1, 2, 3 & 4) WHEREAS, on June 24, 2026, the City Council (the “Council”) of the City of Citrus Heights (the “City”) adopted Resolution No. 2026- initiating proceedings pursuant to the Landscaping and Lighting Act of 1972, being California Streets and Highways Code sections 22500 et seq. (the “Act”), to levy and collect assessments for Fiscal Year 2026/2027 for the City of Citrus Heights Landscape Maintenance Assessment District No. 97-01; and
WHEREAS, the City Engineer has prepared and filed with the City Clerk a report for Fiscal Year 2026/2027 (the “Engineer’s Report”) in accordance with the Act; and WHEREAS, the establishment or approval of the assessments proposed by this resolution will be for the purpose of meeting operating expenses and purchasing supplies, equipment, or materials necessary to maintain service within existing service areas.

NOW, THEREFORE BE IT RESOLVED AND ORDERED that the City Council of the City of Citrus Heights hereby approves the following:

Section 1. Recitals. The foregoing recitals are true and correct and this Council so finds and determines.

Section 2. Approval of Engineer’s Report. This Council hereby approves the Engineer’s Report as filed.

Section 3. Declaration of Intention. This Council hereby declares its intention to order the levy and collection of assessments for the City of Citrus Heights Landscape Maintenance Assessment District No. 97-01.

Section 4. Description of Improvements. The maintenance to be financed by assessments levied in the City of Citrus Heights Landscape Maintenance Assessment District No. 97-01 consist of street corridor landscape and open space vegetation maintenance, including tree, shrub, lawn, and ground cover care; weed control; pruning; fertilization; litter removal; tree and shrub well maintenance; and irrigation system inspections and repairs.

Section 5. Location of District. The Landscape Maintenance Assessment District No. 97-01 includes the territories described in Figures 1.1, 2.1, 3.1, and 4.1 of the Engineer’s Report.

Section 6. Reference to Engineer’s Report for Particulars. A full and detailed description of the improvements, the boundaries of the assessment district, and the proposed assessments upon assessable lots and parcels of land within the district is set forth in the Engineer’s Report. The Engineer’s Report is on file in the City Clerk’s office, 6360 Fountain Square Drive, Citrus Heights, CA 95621, and is available for review by any interested member of the public during normal business hours.

Item 9
Section 7. Notice of Public Hearing. On Wednesday, July 8, 2026, at 6:00 p.m., or as soon thereafter as the matter may be heard, at the Citrus Heights City Hall Council Chambers, 6360 Fountain Square Drive, Citrus Heights, California, 95621 the City Council shall hold a public hearing on the levy of the proposed assessments. The City does not propose to increase the assessments above last year’s amounts for Zones 1, 2, and 4 of Landscape Maintenance Assessment District 97-01, however, the City does propose to increase the assessments above last year’s amounts for Landscape Maintenance Assessment District 97-01, Zone 2 to support adequate and sustainable maintenance services.

Section 8. Publication of Resolution. The City Clerk is directed to give notice of the public hearing by publication of this Resolution of Intention once in a newspaper of general circulation not less than 10 days before the date of the public hearing.

Section 9. Amount of Assessment. The City does not propose to increase the assessment above last year’s amount for Zones 1, 3, and 4. However, the City does to propose to increase the assessments above last year’s amounts for Landscape Maintenance Assessment District 97-01, Zone 2 to support adequate and sustainable maintenance services.

Section 10. Effective Date. This resolution shall take effect from and after the date of its passage.

The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 24th day of June 2026, by the following vote to wit:

AYES: Council Members:

NOES: Council Members:

ABSENT: Council Members:

ABSTAIN: Council Members:

MariJane Lopez-Taff, Mayor
ATTEST:
_________________________________
Amy Van, City Clerk
Item 9

CITY OF CITRUS HEIGHTS

SACRAMENTO COUNTY

CALIFORNIA
ENGINEER’S REPORT
for
Landscape Maintenance Districts
Assessment District No. 97-01(Zones 1, 2, 3, & 4)
Annual Update for Fiscal Year 2026/2027
Prepared by:

Leslie Blomquist
City Engineer
June 24, 2026
Item 9
1 CERTIFICATIONS

LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT
NO. 97-01, Zones 1, 2, 3 & 4
(Pursuant to the Landscaping and Lighting Act of 1972)
Engineer’s Report for Fiscal Year 2026/2027
The undersigned respectfully submits the enclosed report as directed by the City Council.

DATED: June 18, 2026

CITY OF CITRUS HEIGHTS
By ______________________________
Leslie Blomquist, P.E.

CITY ENGINEER
I HEREBY CERTIFY that the enclosed Engineer’s Report, together with Assessment and Assessment Diagram thereto attached, was filed with me on the _______________ day of _________________, 2026.

Amy Van, City Clerk
City of Citrus Heights,
Sacramento County, California
By ______________________________
I HEREBY CERTIFY that the enclosed Engineer’s Report, together with Assessment and Assessment Diagram thereto attached, was approved and confirmed by the City Council of the City of Citrus Heights, California, on the _______________ day of ,2026.

Amy Van, City Clerk
City of Citrus Heights,
Sacramento County, California
By ______________________________
I HEREBY CERTIFY that the enclosed Engineer’s Report, together with Assessment and Assessment Diagram thereto attached, was filed with the County Auditor of the County of Sacramento on the _______________ day of __________________, 2026.

Amy Van, City Clerk
City of Citrus Heights,
Sacramento County, California
By ______________________________
Item 9
2 ENGINEER’S REPORT

LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT
NO. 97-01, Zones 1, 2, 3, & 4
LEVY of FISCAL YEAR 2026/2027 ASSESSMENTS

INTRODUCTION
The City of Citrus Heights has four (4) separate Landscape Maintenance Assessment Districts (LMADs), which provide for maintenance of common areas within nine (9) distinct communities around the City. This report addresses only LMAD 97-01, which contains four (4) separate zones. The general locations for Zones 1, 2, 3, & 4 are shown on the maps on the following pages.

The Sacramento County Landscape Maintenance Assessment District (SCLMAD) was created in 1994 by Sacramento County to consolidate eighteen separate landscape maintenance districts into a single district with five zones. Zones were established based on the type of landscaping, the frequency and level of service required and geographical location.

Upon incorporation, all of Zone 1, and part of Zones 2 and 4 of the SCLMAD fell within the boundaries of the City of Citrus Heights. As a result, the City created Assessment District 97-01 (AD 97-01) on August 13, 1997 to take over responsibility for the maintenance of the zones or portions of zones located within Citrus Heights. Subsequently, in 2004, the City split the existing Zone 4 into two separate zones, Zone 3 and Zone 4.

Funding for the District will be from annual assessments levied on property in the four zones.

The annual assessment levied on each property is related to the maintenance costs for the zone in which the parcel is located.

The following sections provide detailed explanations of each Zone. The corresponding Budget Assessment tables list the 2025/2026 sources of funds (revenues), uses of funds (direct and indirect expenditures), and the proposed assessment for each. Prior year expenditures and assessments are shown for comparison. The City has separated the accounting for each of the four zones; therefore, any noticing and balloting requirements for each of the zones will be treated independently.

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3 Item 9
4 ZONE 1
General:

Known as the Bridgemont Landscape Maintenance Zone, the limits of Zone 1 are defined by Van Maren Lane on the east; north and south of Bridgemont Way, and by Cripple Creek on the west. There are 80 parcels in this Zone, whose boundaries are particularly shown on the Assessment Diagram in Figure 1.1.

The landscape is a natural open space re-vegetation area along Cripple Creek and adjacent to Van Maren Lane. It consists of naturalized and mitigated oak tree stands and other California native plantings. An automatic drip irrigation system is no longer providing water to the revegetation plantings, because the plantings are already well established. Routine maintenance includes tree and shrub care, pruning, fertilization, and tree and shrub well maintenance. A minimum of two times per year, in the spring and summer, weed abatement is performed along the open space perimeter, adjacent to the homes within the district.

City performs/manages the maintenance for the LMAD using its own forces or those of contract providers. Figure 1.2 describes the maintenance specifications for the district.

District Financing/Method of Assessment:

Development of the single family Bridgemont subdivision was conditioned upon establishing a funding source to provide for ongoing landscape maintenance to the re-vegetation planting and open space area. The funding for Zone 1 is from annual assessments levied on residential parcels within the zone’s assessment boundary (Figure 1.1), pursuant to the Landscaping and Lighting Act of 1972. Because each of the single-family lots within the Zone was created as a result of compliance with this condition, each lot benefits in the same proportion. Therefore, the assessment costs are allocated on a per parcel basis for all parcels located in Zone 1 that currently qualify as a buildable single-family parcel per the current City of Citrus Heights Zoning Ordinances. The original annual assessment adopted for Zone 1 upon formation in 1997 was $131.54.

This Zone does not have a cost of living increase provision.

Annual Assessment:

The annual costs for maintenance in Zone 1 have historically exceed total revenues from the assessments and the Zone’s cash reserves have been used to balance the annual budget.

However, this past year, adjustments have been made to preserve the districts reserves while still maintaining a level of service. This zone does not have a provision to increase the annual assessment levied on each parcel. Therefore, as shown in Figure 1.3. “Summary Analysis”, the Fiscal Year 2025/2026 assessments for District 97-01 Zone 1 are proposed to remain the same as the previous fiscal year, at $131.54 per parcel per year for a total annual assessment of $10,523.20. In the future it may be necessary to use other funding sources to cover anticipated shortfalls and/or seek approval of a cost-of-living increase provision through a property owner vote.

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5 The FY 2025/2026 Assessment Roll for Zone 1 is shown in Figure 1.4.

Zone 1 Boundary Description:

All that territory situated in the City of Citrus Heights, County of Sacramento, State of California, more particularly described as follows and as shown on the Assessment Diagram for Zone 1 in Figure 1.1.

Area Description:

All that real property included in the map of Bridgemont, as recorded in the office of the recorder of Sacramento County in Book 195 of Maps, Map number 10 on July 12, 1989.

FIGURE 1.1
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6 Item 9
7 FIGURE 1.3

SUMMARY ANALYSIS
ASSESSMENT DISTRICT 97-01 - ZONE 1
280-75-290; County DL 0270
DESCRIPTION FY 25/26
ACTUAL**
FY 26/27

PROPOSED
BUDGET
ASSESSMENT RATES:

Rate Per Parcel $ 131.54 $ 131.54
Total Number of Parcels 80 80
Total Special Assessments 10,523.20 $ $ 10,523.20
REVENUE:

Interest on Fund Balance $ 1,074.53 $ -
Special Assessments $ 10,450.00 $ 10,523.20
Total Revenue: 11,524.53 $ $ 10,523.20
EXPENDITURES:

Advertising & Mail $ - $ 382.00
Professional Services $ - $ -
Contract - Landscape/Tree
Maintenance/Vegetation Clearing 5,742.00 $ 10,000.00 $
Cost Allocation (Overhead) 5,608.35 $ - $
Total Expenditures: 11,350.35 $ 10,382.00 $
$ 141.20 174.18 $
Transfer to/from Operating Reserve $ (141.20) (174.18) $ $ - - $

OPERATING RESERVE
Beginning Fund Balance (July 1st) $ 43,236.00 $ 43,410.18 Operating Reserve Set-a-side $ - $ -
Transfer from (to) Annual Operating Balance $ 174.18 $ 141.20 Ending Operating Reserve Balance (June 30th) $ 43,410.18 $ 43,551.38 **
$xx.xx
Annual Operating Balance
Annual Ending Balance
Recorded actual expenses for the first 3 quarters of the current Fiscal Year plus projections for the 4th quarter.

Audited Fund Balance from previous Fiscal Year
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8 FIGURE 1.4
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9 ZONE 2
General:

Known as the Heather Downs Landscape Maintenance Zone, the Zone 2 limits are defined by Old Auburn Road on the south, east and west of Wickham Drive; and Mariposa Avenue on the west, north and south of Heredia Way. There are 82 parcels in this Zone, whose boundaries are more particularly shown on the Assessment Diagram in Figure 2.1.

The maintained area in Zone 2 consists of two landscape types, a natural, open space, revegetation area, and a street frontage (corridor). It consists of naturalized and mitigated oak tree stands, other California native plantings and an automatic drip irrigation system providing water to the re-vegetation plantings. Routine maintenance includes tree and shrub care, pruning, fertilization, and tree and shrub well maintenance. A minimum of three times per year, weed abatement mowing is performed in the open space.

The street frontage landscape includes lawn, trees, shrubs, and ground cover. Ongoing street frontage maintenance requires weekly care of the lawn, trees, shrubs, and ground cover, including weed control, fertilization, pruning, and litter removal.

City performs/manages the maintenance for the LMAD using its own forces or those of contract providers. Figure 2.2 describes the maintenance specifications for the district.

District Financing/Method of Assessment:

As a condition of approval, the developer of this single family subdivision was required to establish a funding source to provide ongoing landscape maintenance. The funding for Zone 2 is from annual assessments levied on residential parcels within the zone’s assessment boundary (Figure 2.1), pursuant to the Landscaping and Lighting Act of 1972. Because each of the singlefamily lots within the Zone was created as a result of compliance with this condition, each lot benefits in the same proportion. Therefore, the assessment costs are allocated on a per parcel basis for all parcels located in Zone 2 that currently qualify as a buildable single-family parcel per the current City of Citrus Heights Zoning Ordinances. The original annual assessment adopted for Zone 2 upon formation was $122.74.

The original assessment amount per parcel was insufficient to fund the Zone 2 services after just a few years, so General Fund money was used to supplement this zone. However, in Fiscal Year 2000/2001 the property owners within this zone voted to approve an assessment increase from $122.74 to $151.38 per parcel.

Concurrent with the approval of the assessment increase in FY 2000/2001, the property owners also voted to include a cost of living adjustment provision for Zone 2. This provision allows for an increase in the annual assessment with the percent of increase over the previous annual assessment being less than or equal to the cost of living increase based on the Bay Area Consumer Price Index for all urban consumers. In FY 2023/2024, the City began to exercise the option to adjust the assessments to inflation.

Item 9
10 Annual Assessment:

An adjustment in the annual assessment per parcel is proposed for Fiscal Year 2026/2027.

Maintenance and replacement costs for Zone 2 have continued to increase beyond the amount of revenue generated by the previous annual assessment. As a result, the City of Citrus Heights must increase the annual assessment on each assessed parcel. As shown in Figure 2.3. “Summary Analysis”, the Fiscal Year 2026/2027 assessments for District 97-01 Zone 2 are proposed to increase by 3% (rounded) to an amount of $168.70 per residential parcel. These additional revenues are necessary to support the Zone’s operations and maintenance as well as help to restore an appropriate operating reserve.

The FY 2026/2027 Assessment Roll for Zone 2 is shown in Figure 2.4.

Zone 2 Boundary:

Area Description:

All that real property included in the revised map of Heather Downs Two, as recorded in the office of the recorder of Sacramento County in Book 206 of Maps, Map number 2; July, 1991.

FIGURE 2.1
Item 9
11 Item 9
12 FIGURE 2.3

SUMMARY ANALYSIS
ASSESSMENT DISTRICT 97-02 – ZONE 2
281-75-291; County DL 0271

DESCRIPTION FY 25/26
ACTUAL**
FY 26/27

PROPOSED
BUDGET
ASSESSMENT RATES:

Rate Per Parcel $ 163.80 $ 168.70
Total Number of Parcels 82 82
Total Special Assessments 13,431.60 $ $ 13,833.40
REVENUE:

Interest on Fund Balance $ 879.57 $ -
Special Assessments $ 13,338.92 $ 13,833.40
Total Revenue: 14,218.49 $ $ 13,833.40
EXPENDITURES:

Advertising & Mail $ - $ 400.00
Utilities $ 3,446.97 $ 2,200.00
Professional Services $ - $ 1,000.00
Contract - Landscape/Tree Maintenance $ 6,540.00 $ 7,500.00 Contract - Construction, Repairs & Extra Work $ - $ -
Cost Allocation (Overhead) $ 5,671.18 $ -
Total Expenditures: 15,658.15 $ $ 11,100.00
$ (1,439.66) $ 2,733.40
Transfer to/from Operating Reserve $ (2,733.40) 1,439.66 $ $ - - $

OPERATING RESERVE
Beginning Fund Balance (July 1st) $ 22,936.00 $ 21,496.34 Operating Reserve Set-a-side - $ - $
Transfer from (to) Annual Operating Balance (1,439.66) $ 2,733.40 $ Ending Operating Reserve Balance (June 30th) 21,496.34 $ 24,229.74 $ ** Recorded actual expenses for the first 3 quarters of the current Fiscal Year plus projections for the 4th quarter. $xx.xx Audited Fund Balance from previous Fiscal Year
Annual Operating Balance
Annual Ending Balance
Item 9
13 FIGURE 2.4
Assessment Assessment
224 0910 001 0000 $ 168.70 224 0910 042 0000 $ 168.70
224 0910 002 0000 $ 168.70 224 0910 043 0000 $ 168.70
224 0910 003 0000 $ 168.70 224 0910 044 0000 $ 168.70
224 0910 004 0000 $ 168.70 224 0910 045 0000 $ 168.70
224 0910 005 0000 $ 168.70 224 0910 046 0000 $ 168.70
224 0910 006 0000 $ 168.70 224 0910 047 0000 $ 168.70
224 0910 007 0000 $ 168.70 224 0910 048 0000 $ 168.70
224 0910 008 0000 $ 168.70 224 0910 049 0000 $ 168.70
224 0910 009 0000 $ 168.70 224 0910 050 0000 $ 168.70
224 0910 010 0000 $ 168.70 224 0910 051 0000 $ 168.70
224 0910 011 0000 $ 168.70 224 0910 052 0000 $ 168.70
224 0910 012 0000 $ 168.70 224 0910 053 0000 $ 168.70
224 0910 013 0000 $ 168.70 224 0910 054 0000 $ 168.70
224 0910 014 0000 $ 168.70 224 0910 055 0000 $ 168.70
224 0910 015 0000 $ 168.70 224 0910 056 0000 $ 168.70
224 0910 016 0000 $ 168.70 224 0910 057 0000 $ 168.70
224 0910 017 0000 $ 168.70 224 0910 058 0000 $ 168.70
224 0910 018 0000 $ 168.70 224 0910 059 0000 $ 168.70
224 0910 019 0000 $ 168.70 224 0910 062 0000 $ 168.70
224 0910 020 0000 $ 168.70 224 0910 063 0000 $ 168.70
224 0910 021 0000 $ 168.70 224 0910 064 0000 $ 168.70
224 0910 022 0000 $ 168.70 224 0910 065 0000 $ 168.70
224 0910 023 0000 $ 168.70 224 0920 001 0000 $ 168.70
224 0910 024 0000 $ 168.70 224 0920 002 0000 $ 168.70
224 0910 025 0000 $ 168.70 224 0920 003 0000 $ 168.70
224 0910 026 0000 $ 168.70 224 0920 006 0000 $ 168.70
224 0910 027 0000 $ 168.70 224 0920 007 0000 $ 168.70
224 0910 028 0000 $ 168.70 224 0920 008 0000 $ 168.70
224 0910 029 0000 $ 168.70 224 0920 009 0000 $ 168.70
224 0910 030 0000 $ 168.70 224 0920 010 0000 $ 168.70
224 0910 031 0000 $ 168.70 224 0920 011 0000 $ 168.70
224 0910 032 0000 $ 168.70 224 0920 012 0000 $ 168.70
224 0910 033 0000 $ 168.70 224 0920 013 0000 $ 168.70
224 0910 034 0000 $ 168.70 224 0920 014 0000 $ 168.70
224 0910 035 0000 $ 168.70 224 0920 015 0000 $ 168.70
224 0910 036 0000 $ 168.70 224 0920 016 0000 $ 168.70
224 0910 037 0000 $ 168.70 224 0920 017 0000 $ 168.70
224 0910 038 0000 $ 168.70 224 0920 019 0000 $ 168.70
224 0910 039 0000 $ 168.70 224 0920 023 0000 $ 168.70
224 0910 040 0000 $ 168.70 224 0920 024 0000 $ 168.70
224 0910 041 0000 $ 168.70 224 0920 027 0000 $ 168.70
Subtotal = 6,916.70 $ Subtotal = 6,916.70 $
82 Parcels; Total Zone 2 Assessment is $ 13,833.40
Assessment Number Assessment Number
ASSESSMENT DISTRICT 97-01 ZONE 2
Item 9
14 ZONE 3
General:

Zone 4 of LMAD 97-01, as originally adopted by the City, consisted of two widely separated landscape areas with differing landscape types and maintenance responsibilities. In 2004, the City Council adopted a resolution dividing Zone 4 into two parts and thereby creating Zone 3 (previously non-existent). Zone 3 consists of the Verner Glen Subdivision (commonly known as Summerhill). There are 80 parcels in this Zone, whose boundaries are particularly shown on the Assessment Diagram in Figure 3.1.

The maintained area in Zone 3 consists of street frontage landscape including lawn, trees, shrubs, and ground cover. Ongoing street frontage maintenance requires weekly care of the lawn, trees, shrubs, and ground cover, including weed control, fertilization, pruning, and litter removal.

City performs/manages the maintenance for the LMAD using its own forces or those of contract providers. Figure 3.2 describes the maintenance specifications for the district.

District Financing/Method of Assessment:

As a condition of approval, the developer of two single family subdivisions comprising the original Zone 4 was required to establish a funding source to provide ongoing landscape maintenance. The funding was from annual assessments levied on residential parcels within the zone’s assessment boundaries, pursuant to the Landscaping and Lighting Act of 1972. Because each of the single-family lots within the Zone was created as a result of compliance with this condition, each lot benefits in the same proportion. Therefore, the assessment costs are allocated on a per parcel basis for all parcels located within the assessment boundaries that currently qualify as a buildable single-family parcel per the current City of Citrus Heights Zoning Ordinances. The original annual assessment adopted for Zone 4 upon formation was $42.50.

Upon separation in 2004, the original annual assessment of $42.50 was carried over to Zone 3.

General Fund money was used to supplement maintenance of landscaped areas in Zone 3 in the past. To eliminate the assessment revenue shortfall, an increase in assessment was proposed in Fiscal Year 98/99, but was unanimously opposed by the property owners in the required balloting process. In 2005 an increase in the annual assessment was again proposed and subsequently the property owners approved a one-time increase in the assessment from $42.50 to $81.88.

Concurrent with the assessment increase in 2005, a cost of living adjustment provision was proposed for Zone 3. However, during the property owner balloting process, this provision failed.

Annual Assessment:

The assessment increase approved in 2005 along with focused efforts to reduce overall maintenance costs kept Zone 3 expenditures below available revenues for several years.

However, increased monthly utility costs and the implementation of updated cost allocation Item 9
15 procedures by the City have resulted in a shortfall of approximately $9,874.64 for FY 2025/2026. With no current reserves, this shortfall was subsidized by Gas Tax funds. A shortfall of approximately $4,749.60 is anticipated for FY 2026/2027, pending revisions to the city’s cost allocations.

The Summary Analysis in Figure 3.3 shows details of the Fiscal Year 2026/2027 budget and assessments for Zone 3. The assessments for Zone 3 are proposed to remain the same as Fiscal Year 2025/2026 at $81.88 per parcel per year for a total annual assessment of $6,550.40, as this district does not allow for increasing the assessments without a vote of the effected property owners.

The FY 2026/2027 Assessment Roll for Zone 3 is shown in Figure 3.4.

Zone 3 Boundary Description:

All that territory situated in the City of Citrus Heights, County of Sacramento, State of California, more particularly described as follows and as shown on the Assessment Diagram in Figure 3.1.

Area Description:

All that real property included in the Plat of Verner Glen, as recorded in the office of the recorder of Sacramento County in Book 181 of Maps, Map number 21, on March 1988.

FIGURE 3.1
Item 9
16 Item 9
17 FIGURE 3.3

SUMMARY ANALYSIS
ASSESSMENT DISTRICT 97-01 – ZONE 3
288-75-298; County DOL 0279
DESCRIPTION FY 25/26
ACTUAL**
FY 26/27

PROPOSED
BUDGET
ASSESSMENT RATES:

Rate Per Parcel $ 81.88 $ 81.88
Total Number of Parcels 80 80
Total Special Assessments: 6,550.40 $ $ 6,550.40
REVENUE:

Interest on Fund Balance $ - $ -
Special Assessments $ 6,459.20 $ 6,550.40
Total Revenue: 6,459.20 $ $ 6,550.40
EXPENDITURES:

Advertising & Mail $ - $ -
Utilities $ 3,471.72 $ 3,600.00
Professional Services $ - $ -
Contract - Landscape Maintenance & Extra Work 7,296.00 $ $ 7,700.00 Contract - Tree Maintenance $ - $ -
Contract -Materials & Supplies $ - $ -
Cost Allocation (Overhead) $ 5,566.12 $ -
Total Expenditures: 16,333.84 $ $ 11,300.00
$ (9,874.64) $ (4,749.60)
Transfer to/from Operating Reserve $ 9,874.64 $ 4,749.60 $ - $ -

OPERATING RESERVE
Beginning Fund Balance (July 1st) $ - $ -
Operating Reserve Set-a-side $ - $ -
Transfer from (to) Annual Operating Balance $ (9,874.64) $ (4,749.60) Ending Operating Reserve Balance (June 30th) $ (9,874.64) $ (4,749.60) **
Annual Operating Balance
Annual Ending Balance
Recorded actual expenses for the first 3 quarters of the current Fiscal Year plus projections for the 4th quarter.

Item 9
18 FIGURE 3.4
Item 9
19 ZONE 4
General:

Zone 4 of LMAD 97-01 was originally adopted by the City in 1997. The original zone consisted of the Summerhill Subdivision and the Villa Creekridge Subdivision. These two single family subdivisions were on opposite sides of the City and had widely differing landscaping and maintenance responsibilities.

As a result of the different geographical locations and maintenance responsibilities, the City Council adopted a resolution in 2004 to divide Zone 4 into two parts. The Verner Glenn (Summerhill subdivision) was incorporated into the newly created Zone 3 and the 111 parcel Villa Creekridge Subdivision remained in Zone 4. Figure 4.1 shows the current boundaries of Zone 4.

Originally the maintained area in Zone 4 consisted of street frontage landscape including lawn, trees, shrubs, and ground cover. Ongoing street frontage maintenance requires weekly care of the lawn, trees, shrubs, and ground cover, including weed control, fertilization, pruning, and litter removal.

Over the years General Fund money has been used to supplement maintenance in Zone 4. To reduce the assessment revenue shortfall, staff repeatedly re-evaluated and adjusted the maintenance effort to reduce costs. In July 2007, the City Council approved detaching a portion of the maintained area from Zone 4 (landscaping along Fireweed Circle). This detached area is now maintained by a neighboring Homeowner’s Association under a special agreement. In 2010 the City implemented a xeriscaping (low-water and maintenance) plan to eliminate some of the more labor intensive and water consuming landscape features, such as turf, and reduced the level of service on the remaining landscaping to a minimum. In a further effort to reduce subsidies, in 2011, the City conducted a pilot project that reduced the frequency of maintenance (i.e. every 6 or 8 weeks instead of monthly). However, the monthly maintenance schedule was reinstated due to complaints on its appearance from the public.

Zone 4 now consists of street frontage landscape including trees, shrubs, and ground cover; all with monthly maintenance.

The City performs/manages the maintenance for the LMAD using its own forces or those of contract providers. Figure 4.2 describes the maintenance specifications for the district.

District Financing/Method of Assessment:

Because each of the single-family lots within the Zone was created as a result of compliance with this condition, each lot benefits in the same proportion. Therefore, the assessment costs are allocated on a per parcel basis for all parcels located within the assessment boundaries that Item 9
20 currently qualify as a buildable single-family parcel per the current City of Citrus Heights Zoning Ordinances. The original annual assessment adopted for Zone 4 upon formation was $42.50. Upon separation in 2004, the annual assessment for Zone 4 remained at $42.50 per assessed parcel.

General Fund money has been used to supplement maintenance of landscaped areas in Zone 4 in the past. To eliminate the assessment revenue shortfall, assessment increases were proposed in Fiscal Years 98/99, 2005/2006 and 2009/2010, but all attempts failed under majority opposition by the property owners in the required balloting process.

This Zone does not have a cost of living increase provision.

Annual Assessment:

From the beginning, General Fund revenues have been used to subsidize Zone 4 maintenance.

Efforts such as detaching part of the maintained area, replanting with low-water and low maintenance landscaping and even reducing the maintenance frequency have resulted in significant reductions in maintenance and utility costs, but the gap between maintenance expenditures and assessment revenues continues to widen.

The Summary Analysis in Figure 4.3 shows details of the Fiscal Year 2026/2027 budget and assessments for Zone 4. The assessments for Zone 4 are proposed to remain the same as Fiscal Year 2025/2026, at $42.50 per parcel per year for a total annual assessment of $4,717.50, as this district does not allow for increasing the assessments without a vote of the effected property owners. For FY 2025/2026 the projected budget shortfall is $19,637.03 and again Gas Tax revenues are being budgeted to cover the shortfall. A shortfall of approximately $14,732.50 is anticipated for FY 2026/2027, pending revisions to the city’s cost allocations.

The FY 2024/2025 Assessment Roll for Zone 4 is shown in 4.4.

Zone 4 Boundary Description:

Area Description:

All that real property included in the Plat of Villa Creekridge, as recorded in the office of the recorder of Sacramento County Book 188 of Maps, Map number 3; December, 1988.

Item 9
21 FIGURE 4.1
Item 9
22 Item 9
23 FIGURE 4.3
ASSESSMENT DISTRICT 97-01 – ZONE 4
282-75-292; County DOL 0272
DESCRIPTION FY 25/26
ACTUAL**
FY 26/27

PROPOSED
BUDGET
ASSESSMENT RATES:

Rate Per Parcel $ 42.50 $ 42.50
Total Number of Parcels 111 111
Total Special Assessments 4,717.50 $ $ 4,717.50
REVENUE:

Interest on Fund Balance $ - $ -
Special Assessments $ 4,645.86 $ 4,717.50
Total Revenues: 4,645.86 $ $ 4,717.50
EXPENDITURES:

Advertising $ -
Utilities - Electric $ 921.50 $ 950.00
Utilities - Water $ 7,971.27 $ 8,200.00
Professional Services $ - $ -
Contract - Landscape Maintenance $ 9,492.00 $ 9,800.00
Contract - Construction, Repairs & Extra Work $ 332.00 $ 500.00 Contract - Materials & Supplies $ - $ -
Cost Allocation (Overhead) $ 5,566.12 $ -
Total Expenditures: 24,282.89 $ $ 19,450.00
$ (19,637.03) $ (14,732.50)
Transfer to/from Operating Reserve $ 14,732.50 19,637.03 $ $ - - $

OPERATING RESERVE
Beginning Fund Balance (July 1st) $ - $ -
Operating Reserve Set-a-side $ - $ -
Transfer from (to) Annual Operating Balance $ (19,637.03) $ (14,732.50) Ending Operating Reserve Balance (June 30th) $ (19,637.03) $ (14,732.50)

FACILITY REPLACEMENT RESERVE
Beginning Facility Replacement Balance (July 1st) $ - $ - Facility Replacement Set-aside $ - $ -
Replacement Project Cost $ - $ -
Ending Facility Replacement Balance (June 30th) $ - $ - ** Recorded actual expenses for the first 3 quarters of Fiscal Year plus projection for the 4th quarter.

Annual Operating Balance
Annual Ending Balance
Item 9
24 FIGURE 4.4
Item 9
25 Item 9

CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE: June 26, 2026
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FROM: Regina Cave, General Services Director
Leslie Blomquist, City Engineer
SUBJECT: Initiate Proceedings for Fiscal Year 2026/2027 Annual Update Landscape Maintenance Assessment Districts
98-01, 98-02 (Zones 1, 2, 3 & 4) and 03-01 (Zones 1, 2 & 3) Recommendation
Each year, the City is required to update the assessments for its various Landscape Maintenance Assessment Districts (LMADs). This is the proposed Fiscal Year 2026/2027 update for LMADs No. 98-01; No. 98-02 (Zones 1, 2, 3 and 4); and No. 03-01 (Zones 1, 2 and 3). An Engineer's Report, which describes the proposed levels of maintenance, outlines the proposed financial summary, and includes the Assessment Diagram for each zone in each District, has been prepared by the City Engineer. A copy of the draft Engineer’s Report is available for review, by the public, in the City Clerk’s Office.

Staff recommends Council adopt the following resolutions in the order listed:

1. Resolution No. 2026- __, A Resolution of the City Council of the City of Citrus Heights, California, to Initiate Proceedings Pursuant to the Landscaping and Lighting Act of 1972 for Landscape Maintenance Assessment District No. 98-01.

2. Resolution No. 2026- __, A Resolution of the City Council of the City of Citrus Heights, California, to Initiate Proceedings Pursuant to the Landscaping and Lighting Act of 1972 for Landscape Maintenance Assessment District No. 98-02, Zones 1, 2, 3 and 4.

3. Resolution No. 2026- __, A Resolution of the City Council of the City of Citrus Heights, California, to Initiate Proceedings Pursuant to the Landscaping and Lighting Act of 1972 for Landscape Maintenance Assessment District No. 03-01, Zones 1, 2 and 3.

By adopting the above Resolutions Initiating Proceedings, the City Council would be authorizing the annual update of the City of Citrus Heights LMADs No. 98-01, 98-02, and 03-01; and further authorizing the preparation of the required Engineer's Report.

4. Resolution No. 2026- __, A Resolution of Intention of the City Council of the City of Citrus Heights, California, to Levy and Collect Assessments for Fiscal Year 2026/2027 for Landscape Maintenance Assessment District No. 98-01.

Item 10

5. Resolution No. 2026- __, A Resolution of Intention of the City Council of the City of Citrus Heights, California, to Levy and Collect Assessments for Fiscal Year 2026/2027 for Landscape Maintenance Assessment District No. 98-02, Zones 1, 2, 3 and 4.

6. Resolution No. 2026- __, A Resolution of Intention of the City Council of the City of Citrus Heights, California, to Levy and Collect Assessments for Fiscal Year 2026/2027 for Landscape Maintenance Assessment District No. 03-01, Zones 1, 2 and 3.

Adopting resolutions 4, 5 & 6, above, sets July 8, 2026, at 6:00 p.m., as the date and time of the Public Hearing for the proposed assessments for each district and directs staff to give the required notice.

Fiscal Impact
Assessment Districts 98-01, 98-02 (Zones 1, 2, 3 and 4), and 03-01 (Zones 1, 2 and 3) are currently fully funded by their annual assessments and operating reserves as needed; therefore, there is no fiscal impact to the General Fund for these districts. The following tables (Nos. 1, 2, 3, 4, 5, 6, 7 and 8) summarize the revenues and expenditures for each of the districts/zones contained in the engineer’s report:

Table No. 1
98-01 Stock Village
Description FY 25/26 Actual* FY 26/27 Proposed
REVENUE:

Special Assessments Revenues $11,680.63 $12,209.40
Interest on Fund Balance (1) $3,171.64 $0.00
Total Estimated Revenues $14,852.27 $12,209.40
EXPENDITURES:

Total Estimated Expenditures $27,050.74 $12,453.00
Annual Operating Balance -$12,198.47 -$243.60
(1) Interest earnings estimated; will reflect actuals in final report. (2) Balance transferred to Assessment Fund reserve.
(3) Assessment Fund reserves available to balance the annual operating shortfall.

Item 10
Table No. 2
98-02, Zone 1 – Sorenson Ranch
Description FY 25/26 Actual* FY 26/27 Proposed
REVENUE:

Special Assessments Revenues $24,328.39 $25,481.16
Interest on Fund Balance (1) $1,148.87 $0.00
Total Estimated Revenues $25,477.26 $25,481.16
EXPENDITURES:

Total Estimated Expenditures $27,910.16 $25,481.16
Annual Operating Balance (2) -$2,432.90 $3,856.16
(1) Interest earnings estimated; will reflect actuals in final report. (2) Assessment Fund reserves available to balance the annual operating shortfall. (3) Balance transferred to Assessment Fund reserve.

Table No. 3
98-02, Zone 2 - Autumnwood
Description FY 25/26 Actual* FY 26/27 Proposed
REVENUE:

Special Assessments Revenues $18,086.48 $18,696.24
Interest on Fund Balance (1) $1,090.67 $0.00
Total Estimated Revenues $19,177.15 $18,696.24
EXPENDITURES:

Total Estimated Expenditures $12,694.12 $11,425.00
Annual Operating Balance -$6,483.03 -$7,271.24
(1) Interest earnings estimated; will reflect actuals in final report. (2) Assessment Fund reserves available to balance the annual operating shortfall. (3) Balance transferred to Assessment Fund reserve.

Item 10
Table No. 4
98-02, Zone 3 – Mariposa Creek
Description FY 25/26 Actual* FY 26/27 Proposed
REVENUE:

Special Assessments Revenues $12,550.90 $12,971.70
Interest on Fund Balance (1) $1,131.99 $0.00
Total Estimated Revenues $13,682.89 $12,971.70
EXPENDITURES:

Total Estimated Expenditures $17,034.43 $6,925.00
Annual Operating Balance -$3,351.54 $6,046.70
(1) Interest earnings estimated; will reflect actuals in final report. (2) Assessment Fund reserves available to balance the annual operating shortfall. (3) Balance transferred to Assessment Fund reserve.

Table No. 5
98-02, Zone 4 – Wyatt Ranch
Description FY 25/26 Actual* FY 26/27 Proposed
REVENUE:

Special Assessments Revenues $9,736.82 $9,690.82
Interest on Fund Balance (1) $317.59 $0.00
Total Estimated Revenues $10,054.41 $9,690.82
EXPENDITURES:

Total Estimated Expenditures $0.00 $3,725.00
Annual Operating Balance (2) -$10,054.41 $5,965.82
(1) Interest earnings estimated; will reflect actuals in final report. (2) Balance transferred to Assessment Fund reserve.

Item 10
Table No. 6
03-01, Zone 1 – Stock Ranch NORTH
Description FY 25/26 Actual* FY 26/27 Proposed
REVENUE:

Special Assessments Revenues $98,820.45 $101,827.10
Interest on Fund Balance (1) $20,749.31 $0.00
Total Estimated Revenues $119,569.76 $101,827.10
EXPENDITURES:

Total Estimated Expenditures $147,216.59 $119,600.00
Annual Operating Balance (2) -$27,646.83 -$17,772.90
(1) Interest earnings estimated; will reflect actuals in final report. (2) Assessment Fund reserves available to balance the annual operating shortfall.

Table No. 7
03-01, Zone 2 – Stock Ranch SOUTH
Description FY 25/26 Actual* FY 26/27 Proposed
REVENUE:

Special Assessments Revenues $22,490.56 $23,299.38
Interest on Fund Balance (1) $1,117.00 $0.00
Total Estimated Revenues $23,607.56 $23,299.38
EXPENDITURES:

Total Estimated Expenditures $21,265.74 $3,624.38
Annual Operating Balance (2) $1,224.82 $3,624.38
(1) Interest earnings estimated; will reflect actuals in final report. (2) Balance transferred to Assessment Fund reserve.

Item 10
Table No. 8
03-01, Zone 3 – Mitchell Farms
Description FY 25/26 Actual* FY 26/27 Proposed
REVENUE:

Special Assessments Revenues $92,765.55 $96,135.96
Interest on Fund Balance (1) $5,980.56 $0.00
Total Estimated Revenues $98,746.11 $96,135.96
EXPENDITURES:

Total Estimated Expenditures (2) $75,461.77 $96,135.96
Annual Operating Balance (3) $23,284.34 $0.00
(1) Interest earnings estimated; will reflect actuals in final report. (2) Expenditures include annual transfer to maintenance/repair reserve, and facility replacement reserve. See Engineers Report for detailed expenses.
(3) Balance transferred to Assessment Fund reserve.

Background and Analysis
Assessment District 98-01: First created in 1998, is for the maintenance of certain areas within the subdivision called Stock Village Unit No. 1 and Unit No. 2. Maintenance responsibilities include: [1] periodic trimming of mature oak trees and repair of, and graffiti removal from, a sound wall adjacent to the western side of the subdivision; and [2] landscape and irrigation system maintenance and repair of, and graffiti removal from, a sound wall adjacent to the eastern side of the subdivision, adjacent to Stock Ranch Road.

Assessment District 98-02: Zone 1, first created in 1998, is for the maintenance of certain areas within and adjacent to the subdivision called the Sorensen Ranch development located on the northwest corner of Van Maren Lane and Oak Lakes Lane. Zone 2, first created in 2014, is for the maintenance of certain areas within and adjacent to the subdivision called the Autumnwood development. Zone 3, first created in 2018, is for the maintenance of certain areas within and adjacent to the subdivision called the Mariposa Creek development. Zone 4, providing for the maintenance of certain areas within, and adjacent to the Wyatt Ranch development, was adopted by the City Council in November 2019. However, construction impacts brought about by the pandemic delayed construction and, as a result, the FY 22/23 levy was the first annual assessment for Zone 4, with no incurred maintenance costs to date. This development is still in final stages of construction with public improvements expected to be accepted by the City in FY 26/27.

All improvements maintained by the various zones of Assessment District 98-02 are on public property. Maintenance responsibilities for all zones in Assessment District 98-02 generally include:
maintenance and repairs of corridor landscape; masonry walls; detention basins; pedestrian pathways; pathway lighting, trees, shrubs and ground-cover care; weed control; pruning; fertilization; litter removal; tree and shrub well maintenance; irrigation system inspections and repairs; and graffiti removal.

Item 10
Assessment District 03-01: Zone 1, first created in 2003, is for the maintenance of certain areas within, and adjacent to, the commercial portion of the Stock Ranch subdivision. Zone 2, first created in 2003, is for the maintenance of certain areas within, and adjacent to, the residential portion of the Stock Ranch subdivision. Zone 3, adopted by the City Council in April 2020 is for the maintenance of certain areas within, and adjacent to the Mitchell Farms development.

All improvements maintained by the various zones of Assessment District 03-01 are on public property. The maintenance responsibilities generally include: Zone 1- landscaping and irrigation; bus stops on both sides of Auburn Boulevard adjacent to the Stock Ranch commercial properties; drainage basins; open space areas; pedestrian/bike trail and a pedestrian bridge along and across Arcade Creek; Zone 2 - open space on the south side of Arcade Creek and along the north side of Stock Ranch Road, the landscape strip along the north side of Stock Ranch Road (Sol Way to Woodside Drive), the pedestrian trails and park facilities, a future median on Stock Ranch Road east of the roundabout, and a future landscape strip along the south side of Stock Ranch Road; and Zone 3 - maintenance of the pedestrian pathway, bridges and creek open space (including inspection and pruning of trees) within Lot A (dedicated to the Sunrise Parks and Recreation District), and landscaping and irrigation within the roundabout and approach islands on Arcadia Drive.

Pursuant to the Landscaping and Lighting Act of 1972, assessment districts of this type must be updated annually. A Resolution to Initiate Proceedings is required as the first action of the City Council in order to initiate the update of the LMADs. Subsequent approval of the assessments to be levied and collected will be for the purpose of meeting operating expenses and purchasing supplies, equipment, or materials necessary to maintain landscape facilities for the districts.

An Engineer’s Report has been prepared for the proposed assessments and is available for review, by the public, in the City Clerk’s Office. The Engineer’s Report summarizes maintenance efforts and recommends increasing assessments by 3% (up to 4% maximum allowed) for Fiscal Year 2026/2027 for Districts 98-01; 98-02 Zones 1, 2, 3 and 4; and 03-01 Zones 1, 2 and 3. The recommended increases are in an effort to help sustain existing reserves in each of the respected zones as well as maintain current levels of service.

By the Resolution of Intention, the City Council approves the Engineer’s Report for the Landscape Maintenance Assessment District, Annual Update for Fiscal Year 2026/2027, sets the date for a public hearing on the assessments and directs staff to give the required notice.

Staff recommends July 8, 2026, at 6:00 p.m., or as soon thereafter, as the date and time for the public hearing. At that time, public comment will be received and the Council will consider and adopt a resolution adopting the assessments. Notice of this meeting will be published in accordance with State code.

Attachments

1. Resolution No. 2026-__: Resolution of the City Council of the City of Citrus Heights, California, to Initiate Proceedings Pursuant to the Landscaping and Lighting Act of 1972 for Landscape Maintenance Assessment District 98-01.

2. Resolution No. 2026-__: Resolution of the City Council of the City of Citrus Heights, California, to Initiate Proceedings Pursuant to the Landscaping and Lighting Act of 1972 for Landscape Maintenance Assessment District 98-02, Zones 1, 2, 3 and 4.

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3. Resolution No. 2026-__: Resolution of the City Council of the City of Citrus Heights, California, to Initiate Proceedings Pursuant to the Landscaping and Lighting Act of 1972 for Landscape Maintenance Assessment District 03-01, Zones 1, 2 and 3.

4. Resolution No. 2026-__: Resolution of the City Council of the City of Citrus Heights, California, for the Intention to Levy and Collect Assessments for Fiscal Year 2026/2027 for Landscape Maintenance Assessment District No. 98-01.

5. Resolution No. 2026-__: Resolution of the City Council of the City of Citrus Heights, California, for the Intention to Levy and Collect Assessments for Fiscal Year 2026/2027 for Landscape Maintenance Assessment District No. 98-02, Zones 1, 2, 3 and 4.

6. Resolution No. 2026-__: Resolution of the City Council of the City of Citrus Heights, California, for the Intention to Levy and Collect Assessments for Fiscal Year 2026/2027 for Landscape Maintenance Assessment District No. 03-01, Zones 1, 2 and 3.

7. Draft Engineer’s Report.

Item 10
RESOLUTION NO. 2026-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CITRUS HEIGHTS, CALIFORNIA, TO INITIATE PROCEEDINGS PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972 FOR LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT No. 98-01
WHEREAS, in order to continue to finance the costs of maintaining and servicing landscaping and related facilities in Landscape Maintenance District 98-01 and to equitably distribute the costs among benefited landowners, the City Council (the “City Council”) of the City of Citrus Heights (the “City”) has decided to undertake proceedings pursuant to the Landscaping and Lighting Act of 1972, being California Streets and Highways Code Sections 22500 et seq. (the “Act”), to levy assessments for Fiscal Year 2026/2027.

NOW, THEREFORE, BE IT RESOLVED AND ORDERED that the City Council of the City of Citrus Heights does hereby approve the following:

Section 1. Recitals: The foregoing recitals are true and correct and the City Council so finds and determines.

Section 2. Proposal to levy assessments: The City Council proposes to levy assessments for Fiscal Year 2026/2027 for Assessment District 98-01.

Section 3. Description of Improvements: The maintenance to be financed by assessments levied in the City of Citrus Heights Landscape Maintenance Assessment District No. 98-01 consist of street corridor landscape and sound wall maintenance, including tree, shrub, lawn, and ground cover care; weed control; pruning; fertilization; litter removal; tree and shrub well maintenance; irrigation system inspections and repairs; graffiti removal; and sound wall repair. Detailed description is provided in the Engineer’s Report.

Section 5. Effective Date. This resolution shall become effective on and after the date of its passage.

The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 24th day of June, 2026 by the following vote, to wit:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:

Item 10

MariJane Lopez-Taff, Mayor
ATTEST:
_________________________________
Amy Van, City Clerk
Item 10
RESOLUTION NO. 2026-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CITRUS HEIGHTS, CALIFORNIA, TO INITIATE PROCEEDINGS PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972 FOR LANDSCAPE
MAINTENANCE ASSESSMENT DISTRICT No. 98-02 (ZONES 1, 2, 3 & 4) WHEREAS, in order to continue to finance the costs of maintaining and servicing landscaping and related facilities in Landscape Maintenance District 98-02 (Zones 1, 2, 3 & 4) and to equitably distribute the costs among benefited landowners, the City Council (the “City Council”) of the City of Citrus Heights (the “City”) has decided to undertake proceedings pursuant to the Landscaping and Lighting Act of 1972, being California Streets and Highways Code Sections 22500 et seq. (the “Act”), to levy assessments for Fiscal Year 2026/2027.

NOW, THEREFORE, BE IT RESOLVED AND ORDERED that the City Council of the City of Citrus Heights does hereby approve the following:

Section 1. Recitals: The foregoing recitals are true and correct and the City Council so finds and determines.

Section 2. Proposal to levy assessments: The City Council proposes to levy assessments for Fiscal Year 2026/2027 for Assessment District 98-02.

Section 3. Description of Improvements: The maintenance to be financed by assessments levied in the City of Citrus Heights Landscape Maintenance Assessment District No. 98-02 consist of street maintenance and repairs of corridor landscape, masonry walls, detention basins, and pedestrian pathways including tree, shrub, lawn, and ground cover care; weed control; pruning; fertilization; litter removal; tree and shrub well maintenance; irrigation system inspections and repairs; and graffiti removal. Detailed description is provided in the Engineer’s Report.

Section 5. Effective Date. This resolution shall become effective on and after the date of its passage.

The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 24th day of June, 2026, by the following vote, to wit:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:

Item 10

MariJane Lopez-Taff, Mayor
ATTEST:
_________________________________
Amy Van, City Clerk
Item 10
RESOLUTION NO. 2026-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CITRUS HEIGHTS, CALIFORNIA, TO INITIATE PROCEEDINGS PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972 FOR LANDSCAPE
MAINTENANCE ASSESSMENT DISTRICT No. 03-01 (ZONES 1, 2 & 3) WHEREAS, in order to continue to finance the costs of maintaining and servicing landscaping and related facilities in Landscape Maintenance District 03-01 (Zones 1, 2 & 3) and to equitably distribute the costs among benefited landowners, the City Council (the “City Council”) of the City of Citrus Heights (the “City”) has decided to undertake proceedings pursuant to the Landscaping and Lighting Act of 1972, being California Streets and Highways Code Sections 22500 et seq. (the “Act”), to levy assessments for Fiscal Year 2026/2027.

NOW, THEREFORE, BE IT RESOLVED AND ORDERED that the City Council of the City of Citrus Heights does hereby approve the following:

Section 1. Recitals: The foregoing recitals are true and correct and the City Council so finds and determines.

Section 2. Proposal to levy assessments: The City Council proposes to levy assessments for Fiscal Year 2026/2027 for Assessment District 03-01.

Section 3. Description of Improvements: The maintenance to be financed by assessments levied in the City of Citrus Heights Landscape Maintenance Assessment District No. 03-01 consist of maintenance and repairs of corridor landscape, sound walls, and open space including tree, shrub, lawn, and ground cover care; weed control; pruning; fertilization; litter removal; tree and shrub well maintenance; irrigation system inspections and repairs; graffiti removal; detention basins; wetlands; pedestrian bridge; pedestrian trail; trail lighting; bus stops; park trails; cable fencing; and lighting.

Detailed description is provided in the Engineer’s Report.

Section 5. Effective Date. This resolution shall become effective on and after the date of its passage.

The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 24th day of June, 2026, by the following vote, to wit:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:

Item 10

MariJane Lopez-Taff, Mayor
ATTEST:
_________________________________
Amy Van, City Clerk

Item 10
RESOLUTION NO. 2026-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS,

CALIFORNIA, FOR THE INTENTION TO LEVY AND COLLECT
ASSESSMENTS FOR FISCAL YEAR 2026/2027 FOR LANDSCAPE
MAINTENANCE ASSESSMENT DISTRICT No. 98-01
WHEREAS, on June 24, 2026, the City Council (the “Council”) of the City of Citrus Heights (the “City”) adopted Resolution No. 2026- initiating proceedings pursuant to the Landscaping and Lighting Act of 1972, being California Streets and Highways Code sections 22500 et seq. (the “Act”), to levy and collect assessments for Fiscal Year 2026/2027 for the City of Citrus Heights Landscape Maintenance Assessment District No. 98-01; and WHEREAS, the City Engineer has prepared and filed with the City Clerk a report for Fiscal Year 2026/2027 (the “Engineer’s Report”) in accordance with the Act; and WHEREAS, the establishment or approval of the assessments proposed by this resolution will be for the purpose of meeting operating expenses and purchasing supplies, equipment, or materials necessary to maintain service within existing service areas.

NOW, THEREFORE, BE IT RESOLVED AND ORDERED that the City Council of the City of Citrus Heights does hereby approve the following:

Section 1. Recitals. The foregoing recitals are true and correct and this Council so finds and determines.

Section 2. Approval of Engineer’s Report. This Council hereby approves the Engineer’s Report as filed.

Section 4. Description of Improvements. The maintenance to be financed by assessments levied in the City of Citrus Heights Landscape Maintenance Assessment District No. 98-01 consist of street corridor landscape and sound wall maintenance, including tree, shrub, lawn, and ground cover care; weed control; pruning; fertilization; litter removal; tree and shrub well maintenance; irrigation system inspections and repairs; graffiti removal; and sound wall repair. Detailed description is provided in the Engineer’s Report.

Section 5. Location of District. The Landscape Maintenance Assessment District No. 98-01 includes the territory described in Figure 1.1 of the Engineer’s Report for 98-01, 98-02, and 03-01.

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Section 7. Notice of Public Hearing. On Wednesday, July 8, 2026, at 6:00 p.m., or as soon thereafter as the matter may be heard, at 6360 Fountain Square Drive, Citrus Heights, California 95621 the City Council shall hold a public hearing on the levy of the proposed assessments.

Section 9. Amount of Assessment. The City proposes to increase the assessments above last year’s amounts for Landscape Maintenance Assessment District 98-01 to support adequate and sustainable maintenance services.

Section 10. Effective Date. This resolution shall take effect from and after the date of its passage.

The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 24th day of June, 2026, by the following vote, to wit:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:

MariJane Lopez-Taff, Mayor
ATTEST:
_________________________________
Amy Van, City Clerk
Item 10
RESOLUTION NO. 2026-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS,

CALIFORNIA, FOR THE INTENTION TO LEVY AND COLLECT
ASSESSMENTS FOR FISCAL YEAR 2026/2027 FOR LANDSCAPE
MAINTENANCE ASSESSMENT DISTRICT No. 98-02 (ZONES 1, 2, 3 & 4) WHEREAS, on June 24, 2026, the City Council (the “Council”) of the City of Citrus Heights (the “City”) adopted Resolution No. 2026 - initiating proceedings pursuant to the Landscaping and Lighting Act of 1972, being California Streets and Highways Code sections 22500 et seq. (the “Act”), to levy and collect assessments for Fiscal Year 2026/2027 for the City of Citrus Heights Landscape Maintenance Assessment District No. 98-02 (Zones 1, 2, 3 & 4); and WHEREAS, the City Engineer has prepared and filed with the City Clerk a report for Fiscal Year 2026/2027 (the “Engineer’s Report”) in accordance with the Act; and WHEREAS, the establishment or approval of the assessments proposed by this resolution will be for the purpose of meeting operating expenses and purchasing supplies, equipment, or materials necessary to maintain service within existing service areas.

NOW, THEREFORE, BE IT RESOLVED AND ORDERED that the City Council of the City of Citrus Heights does hereby approve the following:

Section 1. Recitals. The foregoing recitals are true and correct and this Council so finds and determines.

Section 2. Approval of Engineer’s Report. This Council hereby approves the Engineer’s Report as filed.

Section 4. Description of Improvements. The maintenance to be financed by assessments levied in the City of Citrus Heights Landscape Maintenance Assessment District No. 98-02 consist of street maintenance and repairs of corridor landscape, masonry walls, detention basins, and pedestrian pathways including tree, shrub, lawn, and ground cover care; weed control; pruning; fertilization; litter removal; tree and shrub well maintenance; irrigation system inspections and repairs; and graffiti removal. Detailed description is provided in the Engineer’s Report.

Section 5. Location of District. The Landscape Maintenance Assessment District No. 98-02 includes the territories described in Figures 2.1, 3.1 and 4.1 of the Engineer’s Report for LMADs 98- 01, 98-02, and 03-01.

Section 9. Amount of Assessment. The City proposes to increase the assessments above last year’s amounts for Landscape Maintenance Assessment District 98-02, Zones 1, 2, 3 and 4 to support adequate and sustainable maintenance services.

Section 10. Effective Date. This resolution shall take effect from and after the date of its passage.

The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 24th day of June, 2026 by the following vote, to wit:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:

MariJane Lopez-Taff, Mayor
ATTEST:
_________________________________
Amy Van, City Clerk
Item 10
RESOLUTION NO. 2026-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS,

CALIFORNIA, FOR THE INTENTION TO LEVY AND COLLECT
ASSESSMENTS FOR FISCAL YEAR 2026/2027 FOR LANDSCAPE
MAINTENANCE ASSESSMENT DISTRICT No. 03-01 (ZONES 1, 2 & 3) WHEREAS, on June 24, 2026, the City Council (the “Council”) of the City of Citrus Heights (the “City”) adopted Resolution No. 2026 - initiating proceedings pursuant to the Landscaping and Lighting Act of 1972, being California Streets and Highways Code sections 22500 et seq. (the “Act”), to levy and collect assessments for Fiscal Year 2026/2027 for the City of Citrus Heights Landscape Maintenance Assessment District No. 03-01 (Zones 1, 2 & 3); and WHEREAS, the City Engineer has prepared and filed with the City Clerk a report for Fiscal Year 2026/2027 (the “Engineer’s Report”) in accordance with the Act; and WHEREAS, the establishment or approval of the assessments proposed by this resolution will be for the purpose of meeting operating expenses and purchasing supplies, equipment, or materials necessary to maintain service within existing service areas.

NOW, THEREFORE, BE IT RESOLVED AND ORDERED that the City Council of the City of Citrus Heights does hereby approve the following:

Section 1. Recitals. The foregoing recitals are true and correct and this Council so finds and determines.

Section 2. Approval of Engineer’s Report. This Council hereby approves the Engineer’s Report as filed.

Section 4. Description of Improvements. The improvements to be financed by assessments levied in the City of Citrus Heights Landscape Maintenance Assessment District No. 03-01 include street maintenance and repairs of corridor landscape, sound walls, and open space including tree, shrub, lawn, and ground cover care; weed control; pruning; fertilization; litter removal; tree and shrub well maintenance; irrigation system inspections and repairs; graffiti removal; detention basins; wetlands; pedestrian bridge; pedestrian trail; trail lighting; bus stops; park trails; cable fencing; and lighting.

Detailed description is provided in the Engineer’s Report.

Section 5. Location of District. The Landscape Maintenance Assessment District No. 03-01 includes the territories described in Figures 5.1, 6.1 and 7.1 of the Engineer’s Report for LMADs 98- 01, 98-02 and 03-01.

Section 6. Reference to Engineer’s Report for Particulars. A full and detailed description of the improvements, the boundaries of the assessment district, and the proposed assessments upon assessable lots and parcels of land within the district is set forth in the Engineer’s Report. The Engineer’s Report is on file in the City Clerk’s office, 6360 Fountain Square Drive, Citrus Heights, CA Item 10
95621, and is available for review by any interested member of the public during normal business hours.

Section 7. Notice of Public Hearing. On Wednesday, July 8, 2026, at 6:00 p.m., or as soon thereafter as the matter may be heard, at 6360 Fountain Square Drive, Citrus Heights, California 95621 the City Council shall hold a public hearing on the levy of the proposed assessments.

Section 9. Amount of Assessment. The City proposes to increase the assessments above last year’s amounts for Landscape Maintenance Assessment District 03-01, Zones 1, 2 and 3 to support adequate and sustainable maintenance services for FY 2026/2027.

Section 10. Effective Date. This resolution shall take effect from and after the date of its passage.

The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 24th day of June, 2026 by the following vote, to wit:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:

MariJane Lopez-Taff, Mayor
ATTEST:
_________________________________
Amy Van, City Clerk
Item 10

CITY OF CITRUS HEIGHTS

SACRAMENTO COUNTY

CALIFORNIA
ENGINEER’S REPORT
for
Landscape Maintenance Districts
Assessment District Numbers: 98-01, 98-02 and 03-01
Annual Update for Fiscal Year 2026/2027
Prepared by:

Leslie Blomquist
City Engineer
June 24, 2026
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1 CERTIFICATIONS

LANDSCAPE MAINTENANCE DISTRICT
ASSESSMENT DISTRICTS NUMBERS: 98-01, 98-02 and 03-01
(Pursuant to the Landscaping and Lighting Act of 1972)
Engineer’s Report for Fiscal Year 2026/2027
The undersigned respectfully submits the enclosed report as directed by the City Council.

DATED: June 19, 2026

CITY OF CITRUS HEIGHTS
By ______________________________
Leslie Blomquist, P.E.

CITY ENGINEER
I HEREBY CERTIFY that the enclosed Engineer’s Report, together with Assessment and Assessment Diagram thereto attached, was filed with me on the ____________ day of _______________, 2026.

Amy Van, City Clerk
City of Citrus Heights,
Sacramento County, California
By ______________________________
I HEREBY CERTIFY that the enclosed Engineer’s Report, together with Assessment and Assessment Diagram thereto attached, was filed with the County Auditor of the County of Sacramento on the ____________ day of __________________, 2026.

Amy Van, City Clerk
City of Citrus Heights,
Sacramento County, California
By ______________________________
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2 ENGINEER’S REPORT

LANDSCAPE MAINTENANCE DISTRICT
ASSESSMENT DISTRICT NO. 98-01, Stock Village Unit Nos. 1 & 2 ASSESSMENT DISTRICT NO. 98-02, Zone 1, Sorensen Ranch
ASSESSMENT DISTRICT NO. 98-02, Zone 2, Autumnwood
ASSESSMENT DISTRICT NO. 98-02, Zone 3, Mariposa Creek
ASSESSMENT DISTRICT NO. 98-02, Zone 4, Wyatt Ranch
ASSESSMENT DISTRICT NO. 03-01, Zone 1, Stock Ranch NORTH ASSESSMENT DISTRICT NO. 03-01, Zone 2, Stock Ranch SOUTH ASSESSMENT DISTRICT NO. 03-01, Zone 3, Mitchell Farms
LEVY of FISCAL YEAR 2025/2026 ASSESSMENTS

INTRODUCTION
The City of Citrus Heights has four (4) separate landscape maintenance assessment districts, which provide for maintenance of common areas within nine (9) distinct communities around the City.

This Engineer’s Report addresses three of the Districts, 98-01, 98-02 (Zones 1, 2, 3 and 4), and 03-01 (Zones 1, 2 and 3). The general locations of these districts are shown on the maps on the following pages.

Assessment District 98-01, first created in 1998, is for the maintenance of certain areas within the subdivision called Stock Village Unit No. 1 and Unit No. 2. A Strip of land along the west edge of the subdivision and a strip of land along the east edge, adjacent to Stock Ranch Road are the areas to be maintained.

Assessment District 98-02 (Zone 1), first created in 1998, is for the maintenance of certain areas within and adjacent to the subdivisions called Sorensen Ranch Unit Nos. 1, 2, 3, and 4 development. All improvements are on public property. The improved parcels to be maintained are along the west side of Van Maren Lane (approximately 1500 feet); along the north side of Oak Lakes Lane (approximately 1300 feet); and shorter parcels along Campfire Way at Van Maren Lane (approximately 100 feet on the south side); Horseman Way at Van Maren Lane (approximately 100 feet on the north and south side); and the east side of Silversaddle Way at Oak Lake Lane (approximately 100 feet).

Assessment District 98-02 (Zone 2), first created in 2014, is for the maintenance of certain areas within and adjacent to the Autumnwood Subdivision development. All improvements are on public property. The improved parcels to be maintained are along the south side of Antelope Road (approximately 300 feet); along the east side of Live Oak Way (approximately 370 feet); and two (2) detention basins within the subdivision.

Assessment District 98-02 (Zone 3), first created in 2018, is for the maintenance of certain areas within and adjacent to the Mariposa Creek Subdivision development. All improvements are on public property. The improved parcels to be maintained are along the north side of Antelope Road Item 10
3 (approximately 436 feet); along Cripple Creek (approximately 185 lineal feet) located on the east side of the development; a pedestrian pathway with landscaping (Lot C) within the subdivision.

Assessment District 98-02, (Zone 4), provides for the maintenance of landscaping in certain dedicated public spaces within the Wyatt Ranch Subdivision. First annexed into Assessment District 98-02 by the City Council on November 14, 2019, the assessments for this 23 lot singlefamily parcel residential subdivision located on Lawrence Avenue on the west side of Sunrise Boulevard began in fiscal year 2022/2023. Completion of construction of the subdivision and acceptance of the public improvements was expected in 2024/2025. While construction is still in progress, the City will continue to levy funds to ensure a well-established replacement fund prior to taking on the maintenance of this zone.

Assessment District 03-01 (Zones 1 & 2), first created in 2003, is for the maintenance of certain areas within the commercial and residential developments called Stock Ranch. Zone 1 (NORTH) consists of the landscaping along Auburn Boulevard between San Tomas Drive and Raintree Drive (north side of the street and within the medians) and the open space north of Arcade Creek. Zone 2 (SOUTH) consists of the open space on the south side of Arcade Creek and along the north side of Stock Ranch Road.

Assessment District 03-01 (Zone 3), first created in 2020, is for the maintenance of certain areas within and adjacent to the Mitchell Farms Subdivision development. All improvements are on public property. Zone 3 provides for the maintenance of a large open space area (Lot A) along Arcade Creek located in the center of the development (soon to be dedicated to the Sunrise Recreation and Parks District upon completion) and the landscaping within roundabout and three approach islands on Arcadia Drive.

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4 Item 10
5 Item 10
6 Item 10
7 ASSESSMENT DISTRICT 98-01

GENERAL
Landscape Maintenance Assessment District (LMAD) 98-01, first created in 1998, is located along the west side of Stock Ranch Road north of the Stock Ranch Road / Fountain Square Drive intersection. This LMAD provides for the maintenance of certain areas in and adjacent to Units 1 & 2 of the Stock Village subdivision. There are 133 parcels within this district, whose boundaries are more particularly described on the Assessment Diagram contained in Figure 1.1.

Specific features maintained along the western boundary of the subdivision include, a large group of mature oak trees, the west surface of the sound wall along that edge (but not the structural aspects of the wall) and the tree well areas on the west side of the sound wall. Initially the LMAD was responsible for maintaining 42 large Live and Blue oaks, however, through storm damage, disease, and age; that number has been reduced to 16. The City is committed to ensuring the health and viability of the remaining trees as well as the safety of the nearby residents. Therefore, the trees are regularly inspected by an arborist who specializes in oak tree care and maintenance (i.e. removal, pruning and/or cabling) is performed as recommended.

On the eastern boundary of the development, the LMAD maintains landscaping and irrigation in two planter areas adjacent to Stock Ranch Road (Parcels A and B) and the surface and structural aspects of the sound wall along the residential parcels abutting the two planter areas. The City is committed to the appearance of the development through proper maintenance of the plantings as well as periodic replacement of the plant materials. Additionally, the City also focuses on immediate abatement of graffiti on walls and other public structures.

City performs/manages the maintenance for the LMAD using its own forces or those of contract providers. Figure 1.2 describes the maintenance specifications for the district.

It is understood that should the assessment district be dissolved or not generate enough funds to provide the amount of maintenance described herein, the City may reduce the level of maintenance and reduce or discontinue the repair of the improvements on parcels A and B. Additionally, the City shall then have no obligation to maintain the oak trees and sound wall on the west side of the subdivision. The individual property owners could perform the work on the west edge of the subdivision. The individual property owners would not be a beneficiary of the access easement along the west edge of the subdivision.

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8 DISTRICT FINANCING/METHOD OF ASSESSMENT
As a condition of approval, the developer of the single family Stock Village Unit No. 1 and Unit No. 2 subdivision was required to establish a funding source to provide for ongoing maintenance to the re-vegetation planting and the sound walls and the frontage landscaping and irrigation. The funding for the District is from annual assessments levied on properties within the assessment boundary (Figure 1.1) pursuant to the Landscaping and Lighting Act of 1972. Because each of the single-family lots within the District was created as a result of compliance with this condition, each lot benefits in the same proportion. Therefore, the assessment costs are allocated on a per parcel basis for all Assessment Diagram parcels located in the Assessment District that could qualify as a buildable single-family parcel per the current City of Citrus Heights Zoning Ordinances. The original annual assessment adopted for District 98-01 upon formation in 1998 was $158.00 per parcel.

The formation of this district also included a cost-of-living adjustment provision. Should the cost of landscape maintenance activities and utilities rise, this provision allows for the City of Citrus Heights to increase the annual assessment. Each annual increase, if any, that exceeds the amount assessed to the property owners for the prior years shall not exceed the cost-of-living increase based on the Bay Area Consumer Price Index for all urban consumers.

ANNUAL ASSESSMENT
Initially LMAD 98-01 was fully funded by its assessments and accumulated operating reserves in excess of those needed to address unforeseen tree and soundwall maintenance needs. As a result, in Fiscal Year 2004-2005 the annual assessment was reduced from $158 to $80. Over time this reduced assessment rate permitted the District to gradually draw down the excessive operating reserve balance to an appropriate level. However, in recent years continued increases in the costs of regular maintenance activities and utilities have resulted in the reserves being depleted below the level needed to provide for unscheduled maintenance expenditures (i.e. wall repairs, oak tree trimming and electrical system repairs). As a result, in FY 2023/2024, the City of Citrus Heights, for the first time, utilized the cost-of-living increase provision and increased the annual assessment by 3%.

An adjustment in the annual assessment per parcel is proposed for Fiscal Year 2026/2027.

As shown in Figure 1.3. “Summary Analysis”, the Fiscal Year 2026/2027 annual assessments for District 98-01 are proposed to increase by 3% to approximately $91.80 per residential parcel, over the rates for FY 2025/2026. These additional revenues are necessary to support the District’s continued maintenance operations and preserve an appropriate operating reserve to address unforeseen maintenance and repair expenses.

The District’s Assessment Roll is shown in Figure 1.4.

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9 FIGURE 1.1
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10 FIGURE 1.2
ASSESSMENT DISTRICT NO. 98-01

MAINTENANCE SPECIFICATION
West edge of Subdivision
1) Maintain 16 Oak trees. Prune Oak trees once every 5 years or as recommended by an arborist. Supply material and apply insect and disease control chemicals to trees and shrubs. Irrigate Oak trees as necessary. Clean debris from around trees once per year.

Annual Oak tree inspection and associated report.
2) Maintain west sound wall. Clean all graffiti from west surface of wall once every three months, if required.

East edge of Subdivision
1) Maintain trees and other plantings along east frontage of the subdivision, a minimum of once every two weeks. Maintain irrigation system, weekly. Weed area a minimum of once every two weeks. Fertilize area a minimum of twice per year. Control infestation of fungus, diseases and/or insects. This item includes irrigation repair and replanting as needed.
2) Maintain east sound wall. Clean all graffiti from east surface of wall once every three months, if required.

Item 10
11 FIGURE 1.3
ASSESSMENT DISTRICT 98-01
28355289; County DL 0273
DESCRIPTION FY 25/26**
ACTUAL
FY 26/27

PROPOSED
BUDGET
ASSESSMENT RATES:

Rate Per Parcel $ 89.14 $ 91.80
Total Number of Parcels 133 133
Total Special Assessments 11,286.38 $ $ 12,209.40
REVENUE:

Interest on Fund Balance $ 3,171.64 $ -
Special Assessments $ 11,680.63 $ 12,209.40
Total Revenues: 14,852.27 $ $ 12,209.40
EXPENDITURES:

Advertising $ - $ 620.00
Materials and Supplies (bark) $ 3,668.89 $ -
Utilities - Gas & Electric $ 493.10 $ 303.00
Utilities - Water $ 2,097.01 $ 2,026.00
Professional Services $ - $ 500.00
Contract - Landscape Maintenance Services $ 5,688.00 $ 9,004.00 Contract - Tree Maintenance Services $ 11,583.00
Contract - Construction, Repairs & Extra Work $ 268.00 $ - Cost Allocation (Overhead) $ 3,252.74 $ -
Total Expenditures: 27,050.74 $ $ 12,453.00
$ (12,198.47) $ (243.60)
Transfer to/from Operating Reserve $ 12,198.47 $ 243.60 $ - $ -

OPERATING RESERVE
Beginning Fund Balance (July 1st) $ 138,627.00 $ 126,428.53 Operating Reserve Set-a-side $ - $ -
Transfer from (to) Annual Operating Balance $ (12,198.47) $ (243.60) Ending Operating Reserve Balance (June 30th) $ 126,428.53 $ 126,184.93 **
$xx.xx
Annual Operating Balance
Annual Ending Balance
Recorded actual expenses for the first 3 quarters of the current Fiscal Year plus projection for the 4th quarter.

Audited Fund Balance from previous Fiscal Year
Item 10
12 FIGURE 1.4
Assessment
Diagram #
Assessment
Amount
243 0570 001 0000 1 91.80 $
243 0570 002 0000 2 91.80 $
243 0570 003 0000 3 91.80 $
243 0570 004 0000 4 91.80 $
243 0570 005 0000 5 91.80 $
243 0570 006 0000 6 91.80 $
243 0570 007 0000 7 91.80 $
243 0570 008 0000 8 91.80 $
243 0570 009 0000 9 91.80 $
243 0570 010 0000 10 91.80 $
243 0570 011 0000 11 91.80 $
243 0570 012 0000 12 91.80 $
243 0570 013 0000 13 91.80 $
243 0570 014 0000 14 91.80 $
243 0570 015 0000 15 91.80 $
243 0570 016 0000 16 91.80 $
243 0570 017 0000 17 91.80 $
243 0570 018 0000 18 91.80 $
243 0570 019 0000 19 91.80 $
243 0570 020 0000 20 91.80 $
243 0570 021 0000 21 91.80 $
243 0570 022 0000 22 91.80 $
243 0570 023 0000 23 91.80 $
243 0570 024 0000 24 91.80 $
243 0570 025 0000 25 91.80 $
243 0570 026 0000 26 91.80 $
243 0570 027 0000 27 91.80 $
243 0570 028 0000 28 91.80 $
243 0570 029 0000 29 91.80 $
243 0570 030 0000 30 91.80 $
243 0570 031 0000 31 91.80 $
243 0570 032 0000 32 91.80 $
243 0570 033 0000 33 91.80 $
243 0570 034 0000 34 91.80 $
243 0570 035 0000 35 91.80 $
243 0570 036 0000 36 91.80 $
243 0570 037 0000 37 91.80 $
243 0570 038 0000 38 91.80 $
243 0570 039 0000 39 91.80 $
243 0570 040 0000 40 91.80 $
243 0570 041 0000 41 91.80 $
243 0570 042 0000 42 91.80 $
243 0570 043 0000 43 91.80 $
243 0570 044 0000 44 91.80 $
243 0570 045 0000 45 91.80 $
243 0570 046 0000 46 91.80 $
243 0570 047 0000 47 91.80 $
243 0570 048 0000 48 91.80 $
Subtotal = 4,406.40 $
Tax Assessor's Number
ASSESSMENT DISTRICT 98-01 for STOCK VILLAGE UNITS NO. 1 AND NO. 2 Item 10
13 Assessment
Diagram #
Assessment
Amount
243 0570 049 0000 49 91.80 $
243 0570 050 0000 50 91.80 $
243 0570 051 0000 51 91.80 $
243 0570 052 0000 52 91.80 $
243 0570 053 0000 53 91.80 $
243 0570 054 0000 54 91.80 $
243 0570 055 0000 55 91.80 $
243 0570 056 0000 56 91.80 $
243 0570 057 0000 57 91.80 $
243 0570 058 0000 58 91.80 $
243 0570 059 0000 59 91.80 $
243 0570 060 0000 60 91.80 $
243 0570 061 0000 61 91.80 $
243 0570 062 0000 62 91.80 $
243 0570 063 0000 63 91.80 $
243 0570 064 0000 64 91.80 $
243 0570 065 0000 65 91.80 $
243 0570 066 0000 66 91.80 $
243 0570 067 0000 67 91.80 $
243 0570 068 0000 68 91.80 $
243 0570 069 0000 69 91.80 $
243 0570 070 0000 70 91.80 $
243 0570 071 0000 71 91.80 $
243 0570 072 0000 72 91.80 $
243 0570 073 0000 73 91.80 $
243 0570 074 0000 74 91.80 $
243 0570 075 0000 75 91.80 $
243 0570 076 0000 76 91.80 $
243 0570 077 0000 77 91.80 $
243 0570 078 0000 78 91.80 $
243 0570 079 0000 79 91.80 $
243 0570 080 0000 80 91.80 $
243 0580 001 0000 81 91.80 $
243 0580 002 0000 82 91.80 $
243 0580 003 0000 83 91.80 $
243 0580 004 0000 84 91.80 $
243 0580 005 0000 85 91.80 $
243 0580 006 0000 86 91.80 $
243 0580 007 0000 87 91.80 $
243 0580 008 0000 88 91.80 $
243 0580 009 0000 89 91.80 $
243 0580 010 0000 90 91.80 $
243 0580 011 0000 91 91.80 $
243 0580 012 0000 92 91.80 $
243 0580 013 0000 93 91.80 $
243 0580 014 0000 94 91.80 $
243 0580 015 0000 95 91.80 $
243 0580 016 0000 96 91.80 $
Subtotal = 4,406.40 $
ASSESSMENT DISTRICT 98-01 for STOCK VILLAGE UNITS NO. 1 AND NO. 2 Tax Assessor's Number
Item 10
14 Assessment
Diagram #
Assessment
Amount
243 0580 017 0000 97 91.80 $
243 0580 018 0000 98 91.80 $
243 0580 019 0000 99 91.80 $
243 0580 026 0000 105 91.80 $
243 0580 027 0000 106 91.80 $
243 0580 028 0000 107 91.80 $
243 0580 029 0000 108 91.80 $
243 0580 030 0000 109 91.80 $
243 0580 031 0000 110 91.80 $
243 0580 032 0000 111 91.80 $
243 0580 033 0000 112 91.80 $
243 0580 034 0000 113 91.80 $
243 0580 035 0000 114 91.80 $
243 0580 036 0000 115 91.80 $
243 0580 037 0000 116 91.80 $
243 0580 038 0000 117 91.80 $
243 0580 039 0000 118 91.80 $
243 0580 040 0000 119 91.80 $
243 0580 041 0000 120 91.80 $
243 0580 042 0000 121 91.80 $
243 0580 043 0000 122 91.80 $
243 0580 044 0000 123 91.80 $
243 0580 045 0000 124 91.80 $
243 0580 046 0000 125 91.80 $
243 0580 047 0000 126 91.80 $
243 0580 048 0000 127 91.80 $
243 0580 049 0000 128 91.80 $
243 0580 050 0000 129 91.80 $
243 0580 051 0000 130 91.80 $
243 0580 052 0000 131 91.80 $
243 0580 053 0000 132 91.80 $
243 0580 054 0000 133 91.80 $
243 0580 056 0000 100 91.80 $
243 0580 057 0000 101 91.80 $
243 0580 058 0000 102 91.80 $
243 0580 059 0000 103 91.80 $
243 0580 060 0000 104 91.80 $
Subtotal = 3,396.60 $
133 Parcels; Total 98-01 Assessments is $ 12,209.40
ASSESSMENT DISTRICT 98-01 for STOCK VILLAGE UNITS NO. 1 AND NO. 2 Tax Assessor's Number
Item 10
15 ASSESSMENT DISTRICT 98-02 – Zone 1 (Sorensen Ranch)

GENERAL
Landscape Maintenance Assessment District (LMAD) 98-02, Zone 1 (Sorensen Ranch), first created in 1998, is located west of Van Maren Lane and north of Oak Lakes Lane. This LMAD provides for the maintenance of certain areas within and adjacent to Unit Nos. 1, 2, 3, and 4 of the Sorensen Ranch development. There are 222 parcels in this district, whose boundaries are more particularly described on the Assessment Diagram contained in Figure 2.1.

All improvements are on public property. The improved parcels to be maintained are along the west side of Van Maren Lane (approximately 1500 feet); along the north side of Oak Lakes Lane (approximately 1300 feet); and shorter parcels along Campfire Way at Van Maren Lane (approximately 100 feet on the south side); Horseman Way at Van Maren Lane (approximately 100 feet on the north and south side); and the east side of Silversaddle Way at Oak Lakes Lane (approximately 100 feet).

The improvements to be maintained include 81 Oak trees and various conifer trees and accent trees. Shrubs, groundcover, lawn planting, irrigation, sound walls, sign walls with lighting, planters and mow strips are also included. The City is committed to the appearance of the development through proper maintenance of the plantings as well as periodic replacement of the plant materials.

Additionally, the City also focuses on immediate abatement of graffiti on walls and other public structures.

The City performs/manages the maintenance for the LMAD using its own forces or those of contract providers. Figure 2.2 describes the maintenance specifications for the district.

DISTRICT FINANCING/METHOD OF ASSESSMENT
As a condition of approval, the developer of the single-family Sorensen Ranch Unit Nos. 1, 2, 3, and 4 subdivisions was required to establish a funding source to provide for ongoing maintenance of the re-vegetation planting and the sound walls and the frontage landscaping and irrigation.

Funding for the LMAD 98-02, Zone 1 is from annual assessments levied on properties within the assessment boundary (Figure 2.1) pursuant to the Landscaping and Lighting Act of 1972. Because each of the single-family lots within the District was created as a result of compliance with this condition, each lot benefits in the same proportion. Therefore, the assessment costs are allocated on a per parcel basis for all Assessment Diagram parcels located in the Assessment District that could qualify as a buildable single-family parcel per the current City of Citrus Heights Zoning Ordinances. The original annual assessment adopted for District 98-02, Zone 1 upon formation in 1998 was $200.00 per parcel.

Item 10
16 ANNUAL ASSESSMENT
Initially LMAD 98-02, Zone 1, was fully funded by its assessments and accumulated operating reserves in excess of those needed to address unforeseen maintenance/repair needs. As a result, in Fiscal Year 2003-2004 the annual assessment was reduced from $200 to $100. Over time this reduced assessment rate permitted the District to gradually draw down the excessive operating reserve balance to an appropriate level. However, in recent years continued increases in the costs of regular maintenance activities and utilities have resulted in the reserves being depleted below the level needed to provide for unscheduled maintenance expenditures (i.e. soundwall repairs, oak tree trimming and irrigation/electrical system repairs). As a result, in FY 2023/2024, the City of Citrus Heights, for the first time, utilized the cost-of-living increase provision and increased the annual assessment by 3%.

An adjustment in the annual assessment per parcel is proposed for Fiscal Year 2026/2027.

As shown in Figure 2.3. “Summary Analysis”, the Fiscal Year 2026/2027 annual assessments for District 98-02, Zone 1, are proposed to increase by 3% over the rates for FY 2025/2026, to approximately $114.78 per residential parcel. These additional revenues are necessary to support the District’s continued maintenance operations and preserve an appropriate operating reserve to address unforeseen maintenance and repair expenses.

BOUNDARY DESCRIPTION OF AREA TO BE MAINTAINED
All that real property situated in the City of Citrus Heights, County of Sacramento, State of California, which is further described as follows:

Parcel 1, Parcel 2, and Parcel 3 as shown on that certain parcel map entitled “A Portion of the Southwest One-Quarter of Section 27, Township 10 North, Range 6 East, M.D.M.”, filed for record in the office of the Recorder of Sacramento County, on May 28, 1998, in Book 151 of Parcel Maps, at Page 3, and more particularly described on the Assessment Diagram contained in Figure 2.1.

The District’s Assessment Roll is contained in Figure 2.4.

Item 10
17 FIGURE 2.1
Item 10
18 FIGURE 2.2
ASSESSMENT DISTRICT NO. 98-02
Zone 1 (Sorensen Ranch)

MAINTENANCE SPECIFICATION
East and South edge of Subdivision
1) Maintain 81 Oak (mitigation requirement), and various conifer and accent trees. Prune Oak trees once every 5 years. Supply material and apply insect and disease control chemicals to trees and shrubs. Annual Oak tree inspection and associated report. 2) Maintain sound wall. Clean all graffiti from street side of wall as needed. Perform structural repairs/replacement as needed.
3) Maintain trees, turf and other plantings along frontage of the subdivision, a minimum of once every two weeks. Maintain irrigation system, weekly. Weed area a minimum of once every two weeks. Fertilize area a minimum of twice per year. Control infestation of fungus, diseases and/or insects. This item includes irrigation repair and replanting as needed.

Item 10
19 FIGURE 2.3
ASSESSMENT DISTRICT 98-02 ZONE 1
28455289; County DL 0275
FY 25/26**
ACTUAL
FY 26/27

PROPOSED
BUDGET
ASSESSMENT RATES:

Rate Per Parcel $ 111.44 $ 114.78
Total Number of Parcels 222 222
Total Special Assessments 24,739.68 $ $ 25,481.16

REVENUE
Interest on Fund Balance $ 1,148.87 $ -
Special Assessments $ 24,328.39 $ 25,481.16
Total Sources of Funds: 25,477.26 $ $ 25,481.16

EXPENDITURES
Advertising & Mail $ - $ 425.00
Utilities $ 11,092.91 $ 11,200.00
Professional Services $ -
Contract - Landscape Maintenance $ 6,288.00 $ 7,500.00
Contract - Construction, Repairs & Extra Work $ 615.50 $ 2,500.00 Contract - Tree Maintenance Services $ -
Contract - Materials & Supplies $ - $ -
Cost Allocation (Overhead) $ 9,913.75 $ -
Total Expenditures: 27,910.16 $ $ 21,625.00
$ (2,432.90) $ 3,856.16
Transfer to/from Operating Reserve $ (3,856.16) 2,432.90 $ $ - - $

OPERATING RESERVE
Beginning Fund Balance (July 1st) $ 57,795.00 $ 55,362.10 Operating Reserve Set-a-side $ - $ -
Transfer from (to) Annual Operating Balance $ (2,432.90) $ 3,856.16 Ending Operating Reserve Balance (June 30th) 55,362.10 $ $ 59,218.26 **
$xx.xx Audited Fund Balance from previous Fiscal Year

DESCRIPTION
Annual Operating Balance
Annual Ending Balance
Recorded actual expenses for the first 3 quarters of the current Fiscal Year plus projection for the 4th quarter.

Item 10
20 Figure 2.4
ASSESSMENT DISTRICT 98-02 ZONE 1 for
SORENSON RANCH UNITS NO. 1, 2, 3 and 4
UNIT 1

Assessment
Diagram #
Assessment
Amount
Assessment
Diagram #
Assessment
Amount
211 0830 001 0000 11 $ 114.78 211 0830 038 0000 110 $ 114.78 211 0830 002 0000 12 $ 114.78 211 0830 039 0000 111 $ 114.78 211 0830 003 0000 13 $ 114.78 211 0830 040 0000 149 $ 114.78 211 0830 004 0000 14 $ 114.78 211 0830 041 0000 150 $ 114.78 211 0830 005 0000 15 $ 114.78 211 0830 042 0000 151 $ 114.78 211 0830 006 0000 16 $ 114.78 211 0830 043 0000 152 $ 114.78 211 0830 007 0000 17 $ 114.78 211 0830 044 0000 153 $ 114.78 211 0830 008 0000 18 $ 114.78 211 0830 045 0000 154 $ 114.78 211 0830 009 0000 19 $ 114.78 211 0830 046 0000 155 $ 114.78 211 0830 010 0000 20 $ 114.78 211 0830 047 0000 156 $ 114.78 211 0830 011 0000 21 $ 114.78 211 0830 048 0000 157 $ 114.78 211 0830 012 0000 22 $ 114.78 211 0830 049 0000 158 $ 114.78 211 0830 013 0000 23 $ 114.78 211 0830 050 0000 159 $ 114.78 211 0830 014 0000 86 $ 114.78 211 0830 051 0000 160 $ 114.78 211 0830 015 0000 87 $ 114.78 211 0830 052 0000 161 $ 114.78 211 0830 016 0000 88 $ 211 0830 053 114.78 0000 162 $ 114.78 211 0830 017 0000 89 $ 114.78 211 0830 054 0000 163 $ 114.78 211 0830 018 0000 90 $ 114.78 211 0830 055 0000 164 $ 114.78 211 0830 019 0000 91 $ 114.78 211 0830 056 0000 2 $ 114.78 211 0830 020 0000 92 $ 114.78 211 0830 057 0000 3 $ 114.78 211 0830 021 0000 93 $ 114.78 211 0830 058 0000 4 $ 114.78 211 0830 022 0000 94 $ 114.78 211 0830 059 0000 5 $ 114.78 211 0830 023 0000 95 $ 114.78 211 0830 060 0000 6 $ 114.78 211 0830 024 0000 96 $ 114.78 211 0830 061 0000 7 $ 114.78 211 0830 025 0000 97 $ 114.78 211 0830 062 0000 8 $ 114.78 211 0830 026 0000 98 $ 114.78 211 0830 063 0000 9 $ 114.78 211 0830 027 0000 99 $ 114.78 211 0830 064 0000 10 $ 114.78 211 0830 028 0000 100 $ 114.78 Subtotal = $ 3,099.06
211 0830 029 0000 101 $ 114.78
211 0830 030 0000 102 $ 114.78
211 0830 031 0000 103 $ 114.78
211 0830 032 0000 104 $ 114.78
211 0830 033 0000 105 $ 114.78
211 0830 034 0000 106 $ 114.78
211 0830 035 0000 107 $ 114.78
211 0830 036 0000 108 $ 114.78
211 0830 037 0000 109 $ 114.78
Subtotal = 4,246.86 $
Tax Assessor's Number Tax Assessor's Number
Item 10
21 ASSESSMENT DISTRICT 98-02 ZONE 1 for
SORENSON RANCH UNITS NO. 1, 2, 3 and 4
UNIT 2
Assessment
Diagram #
Assessment
Amount
Assessment
Diagram #
Assessment
Amount
211 0830 067 0000 24 $ 114.78 211 0830 105 0000 113 $ 114.78 211 0830 068 0000 25 $ 114.78 211 0830 106 0000 114 $ 114.78 211 0830 069 0000 26 $ 114.78 211 0830 107 0000 115 $ 114.78 211 0830 070 0000 27 $ 114.78 211 0830 108 0000 116 $ 114.78 211 0830 071 0000 28 $ 114.78 211 0830 109 0000 117 $ 114.78 211 0830 072 0000 29 $ 114.78 211 0830 110 0000 118 $ 114.78 211 0830 073 0000 30 $ 114.78 211 0830 111 0000 119 $ 114.78 211 0830 074 0000 31 $ 114.78 211 0830 112 0000 120 $ 114.78 211 0830 075 0000 32 $ 114.78 211 0830 113 0000 122 $ 114.78 211 0830 076 0000 33 $ 114.78 211 0830 114 0000 123 $ 114.78 211 0830 077 0000 34 $ 114.78 211 0830 115 0000 145 $ 114.78 211 0830 078 0000 35 $ 114.78 211 0830 116 0000 181 $ 114.78 211 0830 079 0000 36 $ 114.78 211 0830 117 0000 180 $ 114.78 211 0830 080 0000 37 $ 114.78 211 0830 118 0000 148 $ 114.78 211 0830 081 0000 38 $ 114.78 211 0830 119 0000 147 $ 114.78 211 0830 082 0000 39 $ 211 0830 120 114.78 0000 146 $ 114.78 211 0830 083 0000 40 $ 114.78 Subtotal = 1,836.48 $
211 0830 084 0000 41 $ 114.78
211 0830 085 0000 42 $ 114.78
211 0830 086 0000 43 $ 114.78
211 0830 087 0000 44 $ 114.78
211 0830 088 0000 45 $ 114.78
211 0830 089 0000 71 $ 114.78
211 0830 090 0000 72 $ 114.78
211 0830 091 0000 73 $ 114.78
211 0830 092 0000 74 $ 114.78
211 0830 093 0000 75 $ 114.78
211 0830 094 0000 76 $ 114.78
211 0830 095 0000 77 $ 114.78
211 0830 096 0000 78 $ 114.78
211 0830 097 0000 79 $ 114.78
211 0830 098 0000 80 $ 114.78
211 0830 099 0000 81 $ 114.78
211 0830 100 0000 82 $ 114.78
211 0830 101 0000 83 $ 114.78
211 0830 102 0000 84 $ 114.78
211 0830 103 0000 85 $ 114.78
211 0830 104 0000 112 $ 114.78
ASSESSMENT DISTRICT 98-02 ZONE 1 for SORENSON RANCH
UNITS NO. 1, 2, 3 and 4
Tax Assessor's Number
ASSESSMENT DISTRICT 98-02 ZONE 1 for SORENSON RANCH
UNITS NO. 1, 2, 3 and 4
Tax Assessor's Number
Item 10
22 ASSESSMENT DISTRICT 98-02 ZONE 1 for
SORENSON RANCH UNITS NO. 1, 2, 3 and 4
UNIT 3

Assessment
Diagram #
Assessment
Amount
Assessment
Diagram #
Assessment
Amount
211 0840 048 0000 221 $ 114.78 211 0840 084 0000 63 $ 114.78 211 0840 049 0000 222 $ 114.78 211 0840 085 0000 64 $ 114.78 211 0840 050 0000 193 $ 114.78 211 0840 086 0000 65 $ 114.78 211 0840 051 0000 194 $ 114.78 211 0840 087 0000 66 $ 114.78 211 0840 052 0000 187 $ 114.78 211 0840 088 0000 67 $ 114.78 211 0840 053 0000 188 $ 114.78 211 0840 089 0000 68 $ 114.78 211 0840 054 0000 189 $ 114.78 211 0840 090 0000 69 $ 114.78 211 0840 055 0000 190 $ 114.78 211 0840 091 0000 70 $ 114.78 211 0840 056 0000 191 $ 114.78 211 0840 092 0000 46 $ 114.78 211 0840 057 0000 192 $ 114.78 211 0840 093 0000 47 $ 114.78 211 0840 058 0000 133 $ 114.78 211 0840 094 0000 48 $ 114.78 211 0840 059 0000 134 $ 114.78 211 0840 095 0000 49 $ 114.78 211 0840 060 0000 135 $ 114.78 211 0840 096 0000 50 $ 114.78 211 0840 061 0000 136 $ 114.78 211 0840 097 0000 51 $ 114.78 211 0840 062 0000 137 $ 114.78 211 0840 098 0000 52 $ 114.78 211 0840 063 0000 138 $ 211 0840 099 114.78 0000 53 $ 114.78 211 0840 064 0000 139 $ 114.78 211 0840 100 0000 54 $ 114.78 211 0840 065 0000 140 $ 114.78 211 0840 101 0000 55 $ 114.78 211 0840 066 0000 141 $ 114.78 211 0840 102 0000 56 $ 114.78 211 0840 067 0000 142 $ 114.78 211 0840 103 0000 57 $ 114.78 211 0840 068 0000 143 $ 211 0840 104 114.78 0000 58 $ 114.78 211 0840 069 0000 144 $ 114.78 Subtotal = 2,410.38 $
211 0840 070 0000 123 $ 114.78
211 0840 071 0000 124 $ 114.78
211 0840 072 0000 125 $ 114.78
211 0840 073 0000 126 $ 114.78
211 0840 074 0000 127 $ 114.78
211 0840 075 0000 128 $ 114.78
211 0840 076 0000 129 $ 114.78
211 0840 077 0000 130 $ 114.78
211 0840 078 0000 131 $ 114.78
211 0840 079 0000 132 $ 114.78
211 0840 080 0000 59 $ 114.78
211 0840 081 0000 60 $ 114.78
211 0840 082 0000 61 $ 114.78
211 0840 083 0000 62 $ 114.78
Subtotal = 4,132.08 $
Tax Assessor's Number Tax Assessor's Number
Item 10
23 ASSESSMENT DISTRICT 98-02 ZONE 1 for
SORENSON RANCH UNITS NO. 1, 2, 3 and 4
UNIT 4

Assessment
Diagram #
Assessment
Amount
Assessment
Diagram #
Assessment
Amount
211 0840 001 0000 165 $ 114.78 211 0840 027 0000 201 $ 114.78 211 0840 002 0000 166 $ 114.78 211 0840 028 0000 202 $ 114.78 211 0840 003 0000 167 $ 114.78 211 0840 029 0000 203 $ 114.78 211 0840 004 0000 168 $ 114.78 211 0840 030 0000 204 $ 114.78 211 0840 005 0000 169 $ 114.78 211 0840 031 0000 205 $ 114.78 211 0840 006 0000 170 $ 114.78 211 0840 032 0000 206 $ 114.78 211 0840 007 0000 171 $ 114.78 211 0840 033 0000 207 $ 114.78 211 0840 008 0000 172 $ 114.78 211 0840 034 0000 208 $ 114.78 211 0840 009 0000 173 $ 114.78 211 0840 035 0000 209 $ 114.78 211 0840 010 0000 174 $ 114.78 211 0840 036 0000 210 $ 114.78 211 0840 011 0000 175 $ 114.78 211 0840 037 0000 211 $ 114.78 211 0840 012 0000 176 $ 114.78 211 0840 038 0000 212 $ 114.78 211 0840 013 0000 177 $ 114.78 211 0840 039 0000 213 $ 114.78 211 0840 014 0000 178 $ 114.78 211 0840 040 0000 214 $ 114.78 211 0840 015 0000 179 $ 114.78 211 0840 041 0000 215 $ 114.78 211 0840 016 0000 182 $ 211 0840 042 114.78 0000 216 $ 114.78 211 0840 017 0000 183 $ 114.78 211 0840 043 0000 217 $ 114.78 211 0840 018 0000 184 $ 114.78 211 0840 044 0000 218 $ 114.78 211 0840 019 0000 185 $ 114.78 211 0840 045 0000 219 $ 114.78 211 0840 020 0000 186 $ 114.78 211 0840 046 0000 220 $ 114.78 211 0840 021 0000 195 $ 211 0840 047 114.78 0000 1 $ 114.78 211 0840 022 0000 196 $ 114.78 Subtotal = 2,410.38 $
211 0840 023 0000 197 $ 114.78
211 0840 024 0000 198 $ 114.78
211 0840 025 0000 199 $ 114.78
211 0840 026 0000 200 $ 114.78
Subtotal = 2,984.28 $
222 Parcels; Total 98-02 Zone 1 Assessments is $ 25,481.16 Tax Assessor's Number Tax Assessor's Number
Item 10
24 ASSESSMENT DISTRICT 98-02 – Zone 2 (Autumnwood Subdivision)

GENERAL
Landscape Maintenance Assessment District (LMAD) 98-02, Zone 2 (Autumnwood Subdivision), first created in 2014, is located south side of Antelope Road and west of Amsterdam Avenue. This LMAD provides for the maintenance of certain areas within and adjacent to the Autumnwood subdivision development. All improvements are on public property. There are 46 residential parcels in this district, whose boundaries are more particularly described in the Assessment Diagram contained in Figure 3.1.

Zone 2 consists of forty-six (46) residential lots and seven (7) lots used for landscaping, pedestrian pathways, and drainage detention basins.

Development of the property was conditioned upon establishing a funding source to provide for ongoing maintenance of landscaping, open space, pedestrian/bike trails, masonry walls, drainage detention basins and related appurtenances.

The facilities in Zone 2 include landscaping south of Antelope Road (Lots E and along the frontage of 7106 Antelope Road) and also within the subdivision (Lots A, B, C, D, F, and H). On-going maintenance of the landscaped areas require routine care of trees, shrubs, and groundcover, including weed control, fertilization, mulch replacement, and litter removal. The pedestrian pathways require routine maintenance, including surface and structural maintenance, and graffiti abatement.

The facilities in Zone 2 also include masonry walls on the North and East sides of the subdivision located within Lots A, B, C, E, and the frontage along 7106 Antelope Road. The walls require routine maintenance, including surface and structural maintenance, and graffiti abatement.

The walls and landscaping within the City’s Right-of-Way along the frontage of 7106 Antelope Road (APN: 204-0193-027-0000) as dedicated by separate instrument (County of Sacramento Book 20140715, Page 0721) is also included as areas to be maintained in LMAD 98-02, Zone 2.

The facilities in Zone 2 also include a drainage detention basin located in the northwest corner of the property in Lot D and a drainage detention basin located in the southeast corner of the property in Lot F. The drainage detention basins and appurtenances require routine maintenance including surface and structural maintenance, graffiti abatement, landscape maintenance, and litter removal.

Additionally, the facilities in Zone 2 include a pedestrian trail for circulation (Lots D, F, and H).

The trail will require routine maintenance and replacement.

Figure 3.2 contains a detailed listing of items to be maintained and/or replacement of each of the items. City performs/manages the maintenance for the LMAD using its own forces or those of contract providers.

Item 10
25 DISTRICT FINANCING/METHOD OF ASSESSMENT
As a condition of approval, the developer of the single family Autumnwood subdivision was required to establish a funding source to provide for ongoing maintenance of the landscaping, irrigation, detention basins, pedestrian pathways, and masonry walls located within Lots A, B, C, E, and the frontage along 7106 Antelope Road. Funding for the LMAD 98-02, Zone 2 is from annual assessments levied on properties within the assessment boundary (Figure 3.1) pursuant to the Landscaping and Lighting Act of 1972. Because each of the single-family lots within the District was created as a result of compliance with this condition, each lot benefits in the same proportion. Therefore, the assessment costs are allocated on a per parcel basis for all Assessment Diagram parcels located in the Assessment District that could qualify as a buildable single-family parcel per the current City of Citrus Heights Zoning Ordinances. The original annual assessment adopted for District 98-02, Zone 2 upon formation in 2014 was $354.09 per parcel.

ANNUAL ASSESSMENT
In recent years continued increases in the costs of regular maintenance activities and utilities have resulted in LMAD 98-02, Zone 2’s operating reserves being depleted below the level needed to provide for unscheduled maintenance expenditures (i.e. soundwall repairs, oak tree trimming and irrigation/electrical system repairs). As a result, in FY 2023/2024, the City of Citrus Heights, for the first time, utilized the cost-of-living increase provision and increased the annual assessment by 3%.

An adjustment in the annual assessment per parcel is proposed for Fiscal Year 2026/2027.

As shown in Figure 3.3. “Summary Analysis”, the Fiscal Year 2026/2027 annual assessments for District 98-02, Zone 2, are proposed to again increase by 3% (less than the maximum allowable 4%) over the rates for FY 2025/2026, to approximately $406.44 per residential parcel. These additional revenues are necessary to support the District’s continued maintenance operations and preserve an appropriate operating reserve to address unforeseen maintenance and repair expenses.

The district’s Assessment Roll is contained in Figure 3.4.

BOUNDARY DESCRIPTION OF AREA TO BE MAINTAINED
All that real property situated in the City of Citrus Heights, County of Sacramento, State of California, which is further described as follows:

Lots A, B, C, D, E, F, and H of the Autumnwood Subdivision and also including the frontage along 7106 Antelope Road; more particularly described on the Assessment Diagram contained in Figure

3.1. Item 10
26 FIGURE 3.1

Item 10
27 FIGURE 3.2
ASSESSMENT DISTRICT NO. 98-02
Zone 2 (Autumnwood Subdivision)

MAINTENANCE SPECIFICATION
1) Maintain trees and other plantings along frontage of the subdivision along Antelope Road (Lot E) and Live Oak Way (Lots A-C) a minimum of once every two weeks. Maintain irrigation system, weekly. Weed area a minimum of once every two weeks. Fertilize area a minimum of twice per year. Control infestation of fungus, diseases and/or insects. This item includes irrigation repair, landscaping materials (wood chips, chemicals, etc.), and replanting as needed.
2) Maintain trees and other plantings within the detention basins (Lots D and F) 3) Maintain masonry walls (Lots A-F). Clean all graffiti from street side of wall as needed.

Perform structural repairs/replacement as needed.
4) Maintain pedestrian pathways (Lots D, F, and H). Clean all graffiti as needed. Perform structural repairs/replacement as needed.

Item 10
28 FIGURE 3.3
ASSESSMENT DISTRICT 98-02 ZONE 2
28555289; County DL 0268

FY 25/26**
ACTUAL
FY 26/27

PROPOSED
BUDGET
ASSESSMENT RATES:

Rate Per Parcel $ 394.62 $ 406.44
Total Number of Parcels 46 46
Total Special Assessments 18,152.52 $ $ 18,696.24
REVENUE:

Interest on Fund Balance $ 1,090.67 $ -
Special Assessments $ 18,086.48 $ 18,696.24
Total Revenue: 19,177.15 $ $ 18,696.24
EXPENDITURES:

Advertising & Mail $ - $ 425.00
Utilities $ 2,369.01 $ 3,600.00
Professional Services $ - $ -
Contract - Landscape Maintenance $ 6,888.00 $ 7,400.00
Contract - Construction, Repairs & Extra Work $ - $ -
Contract - Materials & Supplies $ - $ -
Cost Allocation (Overhead) $ 3,437.11 $ -
Total Expenditures: 12,694.12 $ $ 11,425.00
$ 6,483.03 $ 7,271.24
Transfer to/from Operating Reserve $ (7,271.24) (6,483.03) $ $ - - $

OPERATING RESERVE
Beginning Fund Balance (July 1st) $ 44,321.00 $ 50,804.03 Operating Reserve Set-a-side $ - $ -
Transfer from (to) Annual Operating Balance $ 6,483.03 $ 7,271.24 Ending Operating Reserve Balance (June 30th) $ 50,804.03 $ 58,075.27 **
$xx.xx

DESCRIPTION
Annual Operating Balance
Annual Ending Balance
Recorded actual expenses for the first 3 quarters of the current Fiscal Year plus projection for the 4th quarter.

Audited Fund Balance from previous Fiscal Year
Item 10
29 FIGURE 3.4
ASSESSMENT DISTRICT 98-02 ZONE 2
for AUTUMNWOOD
Tax Assessor's Number
Assessment Diagram
#
Assessment
Amount Tax Assessor's Number Assessment Diagram #
Assessment
Amount
204 0740 001 0000 1 $ 406.44 204 0740 029 0000 29 $ 406.44 204 0740 002 0000 2 $ 406.44 204 0740 030 0000 30 $ 406.44 204 0740 003 0000 3 $ 406.44 204 0740 031 0000 31 $ 406.44 204 0740 004 0000 4 $ 406.44 204 0740 032 0000 32 $ 406.44 204 0740 005 0000 5 $ 406.44 204 0740 033 0000 33 $ 406.44 204 0740 006 0000 6 $ 406.44 204 0740 034 0000 34 $ 406.44 204 0740 007 0000 7 $ 406.44 204 0740 035 0000 35 $ 406.44 204 0740 008 0000 8 $ 406.44 204 0740 036 0000 36 $ 406.44 204 0740 009 0000 9 $ 406.44 204 0740 037 0000 37 $ 406.44 204 0740 010 0000 10 $ 406.44 204 0740 038 0000 38 $ 406.44 204 0740 011 0000 11 $ 406.44 204 0740 039 0000 39 $ 406.44 204 0740 012 0000 12 $ 406.44 204 0740 040 0000 40 $ 406.44 204 0740 013 0000 13 $ 406.44 204 0740 041 0000 41 $ 406.44 204 0740 014 0000 14 $ 406.44 204 0740 042 0000 42 $ 406.44 204 0740 015 0000 15 $ 406.44 204 0740 043 0000 43 $ 406.44 204 0740 016 0000 16 $ 406.44 204 0740 044 0000 44 $ 406.44 204 0740 017 0000 17 $ 406.44 204 0740 045 0000 45 $ 406.44 204 0740 018 0000 18 $ 406.44 204 0740 046 0000 46 $ 406.44 204 0740 019 0000 19 $ 406.44 Subtotal = $ 7,315.92
204 0740 020 0000 20 $ 406.44
204 0740 021 0000 21 $ 406.44
204 0740 022 0000 22 $ 406.44 46 Parcels; Total 98-02 Zone 2 Assessments = $ 18,696.24 204 0740 023 0000 23 $ 406.44
204 0740 024 0000 24 $ 406.44
204 0740 025 0000 25 $ 406.44
204 0740 026 0000 26 $ 406.44
204 0740 027 0000 27 $ 406.44
204 0740 028 0000 28 $ 406.44
Subtotal = 11,380.32 $
Item 10
30 ASSESSMENT DISTRICT 98-02 – Zone 3 (Mariposa Creek Subdivision)

GENERAL
Landscape Maintenance Assessment District (LMAD) 98-02, Zone 3 (Mariposa Creek Subdivision), first created in 2018, is located north side of Antelope Road at Turner Court. This LMAD provides for the maintenance of certain areas within and adjacent to the Mariposa Creek Subdivision development. All improvements are on public property. There are 15 residential parcels in this district, whose boundaries are more particularly described on the Assessment Diagram contained in Figure 4.1.

Zone 3 consists of fifteen (15) residential parcels and three (3) lots used for landscaping, pedestrian pathways, and creek open space.

Development of the property was conditioned upon establishing a funding source to provide for ongoing maintenance of landscaping, open space, pedestrian/bike pathways, masonry walls, and related appurtenances.

The facilities in Zone 3 include landscaping north of Antelope Road (Lots A and B) and also within the subdivision (Lot C). On-going maintenance of the landscaped areas require routine care of trees, shrubs, and groundcover, including weed control, fertilization, mulch replacement, litter removal, irrigation systems and pathway lighting. The pedestrian pathways require routine maintenance, including surface and structural maintenance, maintenance and repairs of pathway lighting and graffiti abatement.

The facilities in Zone 3 also include masonry walls on the north side of Antelope Road (within Lots A & B of the subdivision) The walls require routine maintenance, including surface and structural maintenance, and graffiti abatement.

The facilities in Zone 3 also include a pedestrian pathway, street paving, storm drain system and retaining walls located in the northwest corner of the development in Lot C. The walls, pedestrian pathways, and various appurtenances require routine maintenance including surface and structural maintenance, graffiti abatement, landscape maintenance, litter removal, and electrical & irrigation repairs.

The facilities in Zone 3 also include a drainage system along the north property line of the subdivision and creek open space along the east side of the development (Lot B). The drainage system & creek open space appurtenances require routine maintenance including structural maintenance, keeping the creek & floodplain area clear of debris and paving maintenance.

Figure 4.2 contains a detailed listing of items to be maintained and/or replacement of each of the items. City performs/manages the maintenance for the LMAD using its own forces or those of contract providers.

Item 10
31 DISTRICT FINANCING/METHOD OF ASSESSMENT
As a condition of approval, the developer of the single family Mariposa Creek Subdivision was required to establish a funding source to provide for ongoing maintenance of the landscaping, irrigation, storm drain system, creek open space, pedestrian pathways, and masonry walls located within Lots A, B, and C. Funding for LMAD 98-02, Zone 3 will be from annual assessments levied on residential parcels within the zone’s assessment boundary (Figure 4.1), pursuant to the Landscaping and Lighting Act of 1972. Because each of the single-family lots within the zone was created as a result of compliance with this condition, each lot benefits in the same proportion.

Therefore, the assessment costs are allocated on a per parcel basis for all assessment diagram parcels located in the Assessment District that qualified as a buildable single-family parcel per the current City of Citrus Heights Zoning Ordinances. The original annual assessment adopted for District 98-02, Zone 3 upon formation in 2018 was $753.33 per parcel.

The formation of this district also included a cost of living adjustment provision. Should the cost of landscape maintenance activities and utilities rise, this provision allows for the City of Citrus Heights to increase the annual assessment. Each annual increase, if any, shall not exceed a maximum of four percent 4%.

ANNUAL ASSESSMENT
In recent years continued increases in the costs of regular maintenance activities and utilities have resulted in LMAD 98-02 Zone 3’s operating reserves being depleted below the level needed to provide for unscheduled maintenance expenditures (i.e. soundwall repairs and irrigation/electrical system repairs). As a result, in FY 2022/2023, the City of Citrus Heights, for the first time, utilized the cost-of-living increase provision and increased the annual assessment by 3%.

An adjustment in the annual assessment per parcel is proposed for Fiscal Year 2026/2027.

As shown in Figure 4.3. “Summary Analysis”, the Fiscal Year 2026/2027 annual assessments for District 98-02, Zone 3, are proposed to increase by 3% (less than the maximum allowable 4%) over the rates for FY 2025/2026, to approximately $864.78 per residential parcel. These additional revenues are necessary to support the district’s continued maintenance operations and preserve an appropriate operating reserve to address unforeseen maintenance and repair expenses.

The district’s Assessment Roll is contained in Figure 4.4.

BOUNDARY DESCRIPTION OF AREA TO BE MAINTAINED
All that real property situated in the City of Citrus Heights, County of Sacramento, State of California, which is further described as follows:

Lots A, B and C of the Mariposa Creek Subdivision; more particularly described on the Assessment Diagram contained in Figure 4.1.

Item 10
32 FIGURE 4.1

Item 10
33 FIGURE 4.2
ASSESSMENT DISTRICT NO. 98-02
Zone 3 (Mariposa Creek Subdivision)

MAINTENANCE SPECIFICATION
1) Maintain trees and other plantings a minimum of once every two weeks along frontage of the subdivision along Antelope Road (Lots A & B) and the pedestrian pathway within Lot C of subdivision development. Maintain irrigation system, weekly. Weed area a minimum of once every two weeks. Fertilize area a minimum of twice per year. Control infestation of fungus, diseases and/or insects. This item includes irrigation repair, landscaping materials (wood chips, chemicals, etc.), and replanting as needed. 2) Maintain masonry walls (Lots A & B). Clean all graffiti from street-facing side of wall(s) as needed. Perform structural repairs/replacement as needed. 3) Maintain pedestrian pathway (Lot C). Clean all graffiti as needed. Perform structural repairs/replacement as needed. This item includes repair and materials to maintain the light bollards along the pathway.
4) Maintain the creek open space and storm drain system (Lots B & C and along the north property lines of the subdivision development). Keep the existing creek open space free from debris to assure flow of Cripple Creek, repair and maintenance of storm drain system within Lot C and public drainage system along the north property lines of the subdivision development. This item includes any paving repairs and miscellaneous items for the small portion of Orange Drive located within Lot C.

Item 10
34 FIGURE 4.3
ASSESSMENT DISTRICT 98-02 ZONE 3
29255289; County DL0281
DESCRIPTION FY 25/26**
ACTUAL
FY 26/27

PROPOSED
BUDGET
ASSESSMENT RATES:

Rate Per Parcel $ 839.60 $ 864.78
Total Number of Parcels 15 15
Total Special Assessments 12,594.00 $ $ 12,971.70
REVENUE:

Interest on Fund Balance $ 1,131.99 $ -
Special Assessments $ 12,550.90 $ 12,971.70
Total Revenue: 13,682.89 $ $ 12,971.70
EXPENDITURES:

Materials and Supplies $ - $ -
Advertising & Mail $ - $ 450.00
Utilities - Electric $ 200.26 $ 225.00
Utilities - Water $ 737.72 $ 950.00
Professional Services $ - $ -
Contract - Landscape Maintenance $ 4,128.00 $ 5,300.00
Contract - Landscape Repairs/Extra Work $ 3,256.45 $ -
Contract - Tree Maintenance $ 8,712.00 $ -
Cost Allocation* (Overhead) $ - $ -
Total Expenditures: 17,034.43 $ $ 6,925.00
$ (3,351.54) $ 6,046.70
Transfer to/from Operating Reserve $ 3,351.54 $ (6,046.70) $ - $ -

OPERATING RESERVE
Beginning Fund Balance (July 1st) $ 40,728.00 $ 37,376.46 Transfer from (to) Annual Operating Balance $ (3,351.54) $ 6,046.70 Ending Operating Reserve Balance (June 30th) $ 37,376.46 $ 43,423.16 ** Recorded actual expenses for the first 3 quarters fo the current Fiscal Year plus projections for the 4th quarter. $xx.xx Audited Fund Balance from previous Fiscal Year
Annual Operating Balance
Annual Ending Balance
Item 10
35 FIGURE 4.4
ASSESSMENT DISTRICT 98-02 ZONE 3
for MARIPOSA CREEK
Tax Assessor's Number
Assessment
Diagram #
Assessment
Amount
204-0500-060-0000 1 $ 864.78
204-0500-061-0000 2 $ 864.78
204-0500-062-0000 3 $ 864.78
204-0500-063-0000 4 $ 864.78
204-0500-064-0000 5 $ 864.78
204-0500-065-0000 6 $ 864.78
204-0500-066-0000 7 $ 864.78
204-0500-067-0000 8 $ 864.78
204-0500-068-0000 9 $ 864.78
204-0500-069-0000 10 $ 864.78
204-0500-070-0000 11 $ 864.78
204-0500-071-0000 12 $ 864.78
204-0500-072-0000 13 $ 864.78
204-0500-073-0000 14 $ 864.78
204-0500-074-0000 15 $ 864.78
15 Parcels; Total 98-02 Zone 3 Assessments is $ 12,971.70 Item 10
36 ASSESSMENT DISTRICT 98-02 – Zone 4 (Wyatt Ranch Subdivision)

GENERAL
Landscape Maintenance Assessment District (LMAD) 98-02, Zone 4 (Wyatt Ranch Creek Subdivision), first created by City Council action on November 14, 2019, is located on the west side of Sunrise Boulevard at Lawrence Avenue. This LMAD provides for the maintenance of certain areas within and adjacent to the Wyatt Ranch Subdivision development. All improvements are on public property or easements. There are 23 residential parcels in this zone, whose boundaries are more particularly described on the Assessment Diagram contained in Figure 5.1.

Zone 4 consists of twenty three (23) residential parcels and one (1) public utility, wall, landscape and pedestrian walkway easement used for landscaping, masonry wall and walkway along Sunrise Boulevard.

Development of the property was conditioned upon establishing a funding source to provide for ongoing maintenance of landscaping, masonry wall, walkways, and related appurtenances.

The facilities in Zone 4 include landscaping along the west side of Sunrise Boulevard. On-going maintenance of the landscaped areas require routine care of trees, shrubs and groundcover, including weed control, fertilization, mulch replacement, and litter removal. The pedestrian walkways require routine maintenance, including surface and structural maintenance and graffiti abatement. This includes replacement of the walkways in the next 40 years.

The facilities in Zone 4 also include a masonry wall along the west side of Sunrise Boulevard. The walls require routine maintenance, including surface and structural maintenance and graffiti abatement. This item includes replacement of the masonry wall, in the next 40 years.

Figure 5.2 contains a detailed listing of items to be maintained and/or replacement of each of the items. City performs/manages the maintenance for the LMAD using its own forces or those of contract providers.

DISTRICT FINANCING/METHOD OF ASSESSMENT
As a condition of approval, the developer of the single-family Wyatt Ranch Subdivision was required to establish a funding source to provide for ongoing maintenance of the landscaping, irrigation, pedestrian pathways, and masonry wall located within the Public Utility, Wall, Landscape and Pedestrian Walkway Easement. Funding for Zone 4 is be from annual assessments levied on residential parcels within the zone’s assessment boundary (Figure 5.1), pursuant to the Landscaping and Lighting Act of 1972. Because each of the single-family lots within the zone was created as a result of compliance with this condition, each lot benefits in the same proportion.

Item 10
37 The formation of this district also included a cost-of-living adjustment provision. Should the cost of landscape maintenance activities and utilities rise, this provision allows for the City of Citrus Heights to increase the annual assessment. Each annual increase, if any, shall not exceed a maximum of four percent 4%.

ANNUAL ASSESSMENT
Although formally created by the City Council in November 2019, no assessments were levied on the parcels in this zone until FY 2023/2024 due to the uncertainty of the Covid-19 situation and delays in construction.

An adjustment in the annual assessment per parcel is proposed for Fiscal Year 2026/2027.

Completion of construction of the subdivision and transfer of landscape maintenance responsibilities to the City of Citrus Heights is expected in 2026/2027. To ensure the district establishes a reserve prior to the City assuming responsibility of Zone 3, annual assessments for District 98-02 Zone 4 are proposed to increase by 3% (less than the maximum allowable 4%) over the rates for FY 2025/2026, to approximately $421.34 per residential parcel.

The district’s Assessment Roll is contained in Figure 5.4.

BOUNDARY DESCRIPTION OF AREA TO BE MAINTAINED
All that real property situated in the City of Citrus Heights, County of Sacramento, State of California, which is further described as follows:

P.U.E., Wall, Landscape and Pedestrian Easement of the Wyatt Ranch Subdivision; more particularly described on the Assessment Diagram contained in Figure 5.1.

Item 10
38 FIGURE 5.1

Item 10
39 FIGURE 5.2
ASSESSMENT DISTRICT NO. 98-02
Zone 4 (Wyatt Ranch Subdivision)

MAINTENANCE SPECIFICATION
1) Maintain trees and other plantings a minimum of once every two weeks along the Sunrise Boulevard frontage of the subdivision (P.U.E., Wall, Landscape and Pedestrian Easement).

Maintain irrigation system & litter removal, weekly. Weed area a minimum of once every two weeks. Fertilize area a minimum of twice per year. Control infestation of fungus, diseases and/or insects. This item includes utilities (water & electricity), irrigation repair, landscaping materials (wood chips, chemicals, etc.), and replanting as needed. 2) Maintain masonry wall. Clean all graffiti from street-facing side of wall(s) as needed.

Perform structural repairs/replacement as needed.
3) Maintain pedestrian pathway. Clean all graffiti as needed. Perform structural repairs/replacement as needed.

Item 10
40 FIGURE 5.3
ASSESSMENT DISTRICT 98-02 ZONE 4
Fund and County DL 1170
DESCRIPTION FY 25/26**
ACTUAL
FY 26/27

PROPOSED
BUDGET
ASSESSMENT RATES:

Rate Per Parcel $ 409.08 $ 421.34
Total Number of Parcels $ 23.00 $ 23.00
Total Special Assessments 9,408.84 $ $ 9,690.82
REVENUE:

Release from Maintenance/Repair Reserve Balance $ - $ - Release from Facility Replacement Reserve Balance $ - $ - Interest on Fund Balance $ 317.59 $ -
Special Assessments $ 9,736.82 $ 9,690.82
Other Revenue $ - $ -
Total Revenue: 10,054.41 $ $ 9,690.82
EXPENDITURES*:

Materials and Supplies $ - $ -
Advertising & Mail $ - $ 425.00
Utilities - Electric $ - $ 150.00
Utilities - Water $ - $ 600.00
Professional Services $ - $ 50.00
Contract Landscape Maintenance $ - $ 2,500.00
Cost Allocation (Overhead) $ - $ -
Total Expenditures: $ - $ 3,725.00
$ 10,054.41 $ 5,965.82
Transfer to Maintenance/Repair Reserve $ 5,500.00 $ (5,598.28) Transfer to Facility Replacement Reserve $ 6,001.70 $ (1,866.10) $ 21,556.11 $ (1,498.56)

MAINTENANCE /REPAIR RESERVE
Beginning Fund Balance (July 1st) $ 7,289.00 $ 12,789.00 Release to Operating Revenue $ - $ -
Transfer from Operating Balance $ 5,500.00 $ 5,598.28
Ending Operating Reserve Balance (June 30th) $ 12,789.00 $ 18,387.28

FACILITY REPLACEMENT RESERVE
Beginning Facility Replacement Balance (July 1st) $ 18,947.00 $ 24,948.70 Release to Facility Replacement Revenue $ - $ -
Transfer from Operating Balance $ 6,001.70 $ 1,866.10
Ending Facility Replacement Balance (June 30th) $ 24,948.70 $ 26,814.80 * No recorded expenditures for this zone; subdivsion remains under private developer until dedication to city. **
$xx.xx Audited Fund Balance from previous Fiscal Year
Annual Operating Balance
Annual Ending Balance
Recorded actual expenses for the first 3 quarters of the current Fiscal Year plus projection for the 4th quarter.

Item 10
41 FIGURE 5.4
ASSESSMENT DISTRICT 98-02 ZONE 4
for WYATT RANCH

Tax Assessor's Number Assessment Diagram # Assessment Amount 211-0920-001-0000 1 $ 421.34
211-0920-002-0000 2 $ 421.34
211-0920-003-0000 3 $ 421.34
211-0920-004-0000 4 $ 421.34
211-0920-005-0000 5 $ 421.34
211-0920-006-0000 6 $ 421.34
211-0920-007-0000 7 $ 421.34
211-0920-008-0000 8 $ 421.34
211-0920-009-0000 9 $ 421.34
211-0920-010-0000 10 $ 421.34
211-0920-011-0000 11 $ 421.34
211-0920-012-0000 12 $ 421.34
211-0920-013-0000 13 $ 421.34
211-0920-014-0000 14 $ 421.34
211-0920-015-0000 15 $ 421.34
211-0920-016-0000 16 $ 421.34
211-0920-017-0000 17 $ 421.34
211-0920-018-0000 18 $ 421.34
211-0920-019-0000 19 $ 421.34
211-0920-020-0000 20 $ 421.34
211-0920-023-0000 21 $ 421.34
211-0920-022-0000 22 $ 421.34
211-0920-021-0000 23 $ 421.34
23 Parcels; Total 98-02 Zone 4 Assessments is $ 9,690.82 Item 10
42 ASSESSMENT DISTRICT 03-01 - ZONE 1 Stock Ranch NORTH (Auburn Commerce District)

GENERAL
This assessment district, first created in 2003, is for the maintenance of certain areas within and adjacent to the Stock Ranch development. All improvements are on public property.

Assessment District 03-01 has two service areas, Zones 1 and 2. The boundaries of Zone 1 are more particularly described in the Assessment Diagram contained in Figure 6.1.

Zone 1 (Auburn Commerce District) is responsible for the landscaping along Auburn Boulevard between San Tomas Drive and Raintree Drive (both sides of the street and the medians), sound walls (surface and structural maintenance) along the east and west sides of the development and the open space north of Arcade Creek including the drainage basins, pedestrian trails and bridge.

The City is committed to the appearance of the development through proper maintenance of the plantings as well as periodic replacement of the plant materials. Additionally, the City also focuses on immediate abatement of graffiti on walls and other public structures.

The City maintains LMAD-related landscape areas in and adjacent to public streets using City forces or those of contract providers. Facilities located in the open-space areas within the District are maintained by the Sunrise Park and Recreation District. Figure 6.2 describes the maintenance specifications for the district.

DISTRICT FINANCING/METHOD OF ASSESSMENT
As a condition of approval, the developer of the commercial zone of Stock Ranch development was required to establish a funding source to provide for ongoing maintenance of the landscaping and irrigation along Auburn Boulevard between San Tomas Drive and Raintree Drive (both sides of the street and the medians), sound walls (surface and structural maintenance) along the east and west sides of the development and the open space north of Arcade Creek including the drainage basins, pedestrian trails and bridge. Funding for the LMAD 03-01 Zone 1 is from annual assessments levied on property within the zone’s assessment boundary (Figure 6.1) pursuant to the Landscaping and Lighting Act of 1972. By agreement, the developer of the Stock Ranch subdivisions installed and maintained all landscaping improvements described in this Engineer’s Report until the City’s acceptance.

The method used to spread the assessments for Zone 1 is as follows:
• Zone 1 consists of 67.20 total acres with 36.82 acres designated for commercial uses. • The cost to maintain the improvements within Zone 1 is to be allocated as follows:

1. The assessment for each parcel is calculated by multiplying the total developable acres, as shown in Figure 4.4, by the cost per acre.

2. The assessment is subject to an annual adjustment not to exceed 4% beginning with FY 2004-2005.

Item 10
43 METHOD OF ASSESSMENT:

An adjustment in the annual assessment rate per acre is proposed for Fiscal Year 2026/2027.

As shown in Figure 6.3. “Summary Analysis”, the Fiscal Year 2026/2027 assessments for District 03-01 Zone 1 are proposed to increase by 3% (less than the maximum allowable 4%) to approximately $2,765.54 per acre. These additional revenues are necessary to support the LMAD 03-01 Zone 1’s operations and maintenance, provided by the Sunrise Recreation and Park District and City forces, and to preserve existing operating and replacement reserves.

Figure 6.4 contains the Assessment Roll for A.D. 03-01 – Zone 1.

FIGURE 6.1
Item 10
44 FIGURE 6.2
ASSESSMENT DISTRICT NO. 03-01
Zone 1

MAINTENANCE SPECIFICATION
The following sections provide detailed explanations and describe the zone of benefit and the facilities to be maintained.

ZONE 1
Maintained by the City or City contractors:

Landscaping north of Auburn Boulevard and within the median on Auburn Boulevard. Ongoing maintenance of the Auburn Boulevard landscape requires routine care of lawn, trees, shrubs and groundcover, including weed control, fertilization and litter removal.

Drainage facilities in the open space area next to the creek way include three detention basins and drain manholes which will require routine maintenance and include cleaning and clearing of debris.

Maintained by the Sunrise Parks and Recreation District Masonry walls on the east and west side of the zone adjacent to open space areas. These walls require routine maintenance, including surface and structural maintenance and graffiti abatement.

Pedestrian circulation facilities in the Zone includes a pedestrian trail with lighting and benches and pedestrian bridge. The trail and benches will require routine maintenance and lighting along the trail will require period maintenance and replacement of bulbs.

Item 10
45 FIGURE 6.3
ASSESSMENT DISTRICT 03-01 ZONE 1
28655289; County DL 0276
DESCRIPTION FY 25/26**
ACTUAL
FY 26/27

PROPOSED
BUDGET
ASSESSMENT RATES:

Rate Per Acre 2,685.00 $ 2,765.54 $
Total Number of Acres (12 Parcels) 36.82 36.82
Total Special Assessments* 98,861.66 $ 101,827.10 $
REVENUE:

Release from Fund Balance $ - $ -
Interest on Fund Balance $ 20,749.31 $ -
Special Assessments $ 98,820.45 $ 101,827.10
Contributions $ - $ -
Other Revenue $ - $ -
Total Revenues: 119,569.76 $ $ 101,827.10
EXPENDITURES:

Advertising $ - $ 425.00
Utilities - Electrical $ 2,446.77 $ 2,675.00
Utilities - Water $ 4,295.66 $ 3,700.00
SRPD Maintenance and Vegetation Management $ 86,000.00 112,001.91 $ Contract - Repairs & Extra Work 193.50 $ - $
Contract - Landscape Maintenance 19,596.00 $ 22,000.00 $ Contract - Bus Stop Maintenance-Pressure Washing 4,743.00 $ 4,800.00 $ Contract -Materials & Supplies - $ - $
Cost Allocation (Overhead) 3,939.75 $ - $
Total Uses of Funds: $ 119,600.00 147,216.59 $
$ (17,772.90) (27,646.83) $
Transfer to/from Operating Reserve $ 17,772.90 27,646.83 $ $ - - $

OPERATING RESERVE
Beginning Operating Reserve Balance (July 1st) $ 812,923.17 840,570.00 $ Operating Reserve Set-aside - $ - $
Transfer from (to) Annual Operating Balance (27, $ (17,772.90) 646.83) $ Ending Operating Reserve Balance (June 30th) $ 795,150.27 812,923.17 $

FACILITY REPLACEMENT RESERVE
Beginning Facility Replacement Balance (July 1st) $ 392,535.00 392,535.00 $ Facility Replacement Set-aside - $ - $
Replacement Project Cost - $ - $
Ending Facility Replacement Balance (June 30th) $ 392,535.00 392,535.00 $ MAINTENANCE RESERVE $ 402,615.27 420,388.17 $
* Rounded down per Sac County requirements
**
$xx.xx
Annual Operating Balance
Annual Ending Balance
Recorded actual expenses for the first 3 quarters of the current Fiscal Year plus Audited Fund Balance from previous Fiscal Year
Item 10
46 FIGURE 6.4
ASSESSMENT DISTRICT 03-01 ZONE 1
for Auburn Commerce District
Tax Assessor's Number
Assessment
Diagram # Area (acres) Amount per Acre Total Assessment 211 0870 012 0000 1 1.44 $ 2,765.54 $ 3,982.38
211 0870 011 0000 2 1.1 $ 2,765.54 $ 3,042.08
211 0870 007 0000 3 0.78 $ 2,765.54 $ 2,157.12
211 0870 006 0000 4 0.61 $ 2,765.54 $ 1,686.98
211 0870 005 0000 5 1.06 $ 2,765.54 $ 2,931.46
211 0870 004 0000 6 0.81 $ 2,765.54 $ 2,240.08
211 0870 003 0000 7 3.55 $ 2,765.54 $ 9,817.66
211 0870 008 0000 8 0.76 $ 2,765.54 $ 2,101.80
211 0870 009 0000 9 0.98 $ 2,765.54 $ 2,710.22
211 0870 010 0000 10 0.98 $ 2,765.54 $ 2,710.22
211 0870 001 0000 11 13.19 $ 2,765.54 $ 36,477.46
211 0870 002 0000 14 11.56 $ 2,765.54 $ 31,969.64
14 Parcels (36.82 Acres; Total 03-01 Zone 1 Assessments is $ 101,827.10 Item 10
47 ASSESSMENT DISTRICT 03-01 - ZONE 2 Stock Ranch SOUTH

GENERAL
This assessment district, first created in 2003, is for the maintenance of certain areas within and adjacent to the Stock Ranch development. All improvements are on public property.

Assessment District 03-01 has two service areas, Zones 1 and 2. On July 13, 2006, the City Council approved the annexation of Phases 3 and 4 of the Stock Ranch Residential development into Zone

2. The boundaries of Zone 2 are more particularly described on the Assessment Diagram contained in Figure 7.1.

Zone 2 is responsible for the open space on the south side of Arcade Creek and along the north side of Stock Ranch Road, the landscape strip along the north side of Stock Ranch Road (Sol Way to Woodside Drive), the pedestrian trails and park facilities, a future median in Stock Ranch Road, east of the roundabout, and a future landscape strip along the south side of Stock Ranch Road. The City is committed to the appearance of the development through proper maintenance of the plantings as well as periodic replacement of the plant materials. Additionally, the City also focuses on immediate abatement of graffiti on walls and other public structures.

The City maintains LMAD-related landscape areas in and adjacent to public streets using City forces or those of contract providers. Facilities located in the open-space areas within the District are maintained by the Sunrise Park and Recreation District. Figure 7.2 describes the maintenance specifications for the district.

DISTRICT FINANCING/METHOD OF ASSESSMENT
As a condition of approval, the developer of the commercial zone of Stock Ranch development was required to establish a funding source to provide for ongoing maintenance of open space on the south side of Arcade Creek and along the north side of Stock Ranch Road, the landscape strip along the north side of Stock Ranch Road (Sol Way to Woodside Drive), the pedestrian trails and park facilities, a future median in Stock Ranch Road, east of the roundabout, and a future landscape strip along the south side of Stock Ranch Road. Funding for the District is from annual assessments levied on properties within the zone’s assessment boundary (Figure 7.1) pursuant to the Landscaping and Lighting Act of 1972. The original annual assessment adopted for District 03- 01 Zone 2, upon formation in FY 2003/2004 was $82.42 per single-family residential parcel and $411.86 per acre of undeveloped/commercial property.

ANNUAL ASSESSMENT:

Initially LMAD 03-01 Zone 2 was fully funded by its assessments. However, in recent years continued increases in the costs of regular maintenance activities and utilities have resulted in the annual expenses exceeding the annual assessment revenue and operating reserves being depleted Item 10
48 to make up the difference. As a result, in FY 2023/2024, the City of Citrus Heights began exercising the cost-of-living increase provision and increased the annual assessment by 3%.

Annual adjustments in the assessment rate are proposed for Fiscal Year 2026/2027. As shown in Figure 7.3. “Summary Analysis”, the Fiscal Year 2026/2027 assessments for District 03- 01 Zone 2 are again proposed to increase by 3% (less than the maximum allowable 4%) over the rates charged in FY 2025/2026. This results in increases to approximately $98.36 per residential parcel and $491.70 per acre of undeveloped/commercial land. These additional revenues are necessary to support the extensive maintenance needs for the district, provided by the Sunrise Recreation and Park District as well as the City through contract services.

Figure 7.4 contains the Assessment Roll for A.D. 03-01 – Zone 2.

Item 10
49 FIGURE 7.1
Item 10
50 FIGURE 7.2
ASSESSMENT DISTRICT NO. 03-01 Zone 2

MAINTENANCE SPECIFICATION

The following sections provide detailed explanations and describe the zone of benefit and the facilities to be maintained.

ZONE 2
Maintained by the City or City contractors:

Along the north side of Stock Ranch Road, the landscaping and irrigation of land within the 15-foot landscape corridor shall be maintained and repaired as necessary. The street frontage landscape includes lawn, trees, shrubs and groundcover. Ongoing street frontage maintenance requires weekly care of the lawn, trees, shrubs and groundcover including weed control, fertilization, pruning and litter removal.

A future median in Stock Ranch Road between Fountain Square Drive and Sol Way and a landscape corridor along the south side of Stock Ranch Road, east of Fountain Square Drive will also be maintained. Once construction is complete, maintenance of these future improvements will begin following a required plant establishment period.

Maintained by the Sunrise Parks and Recreation District:

Zone 2 includes maintenance of the open space area south of Arcade Creek and within the open space parcels located immediately east of Stock Ranch Road. Routine maintenance includes pruning, tree and shrub maintenance and weed abatement adjacent to homes within the District. A post and cable fence between Stock Ranch Road and the open space parcels will require periodic maintenance and replacement.

Pedestrian circulation facilities in the Zone include a pedestrian trail that requires routine maintenance.

Item 10
51 FIGURE 7.3
ASSESSMENT DISTRICT 03-01 ZONE 2
28755289; County DL 0278
DESCRIPTION FY 25/26**
ACTUAL
FY 26/27

PROPOSED
BUDGET
ASSESSMENT RATES:

Rate Per Parcel (Residential) $ 95.50 $ 98.36
Total Number of Residential Parcels 121 121
Sub-Total A $ 11,555.50 $ 11,901.56
Rate Per Acre (Commercial/Undeveloped) $ 491.71 477.39 $ Total Number of Acres (5 Parcels)*** 23.18 23.18
Sub-Total B $ 11,065.90 $ 11,397.82
Total Special Assessments (A+B) $ 22,621.40 $ 23,299.38 REVENUE:

Release from Fund Balance $ - $ -
Interest on Fund Balance $ 1,117.00 $ -
Special Assessments $ 22,490.56 $ 23,299.38
Contributions $ - $ -
Other Revenue $ - $ -
Total Revenues: 23,607.56 $ $ 23,299.38
EXPENDITURES:

Advertising $ - $ 425.00
Materials and Supplies $ 1,222.96 $ -
Utilities - Electric $ 992.92 $ 800.00
Utilities - Water $ 1,857.03 $ 2,650.00
SRPD Maintenance Services $ 7,775.67 $ 12,500.00
Contract - Landscape Maintenance $ 3,168.00 $ 3,300.00
Contract - Repairs, Tree Trimming & Extra Work 2,673.00 $ $ - Cost Allocation (Overhead) $ 3,576.16 $ -
Total Expenditures: 21,265.74 $ $ 19,675.00
$ 1,224.82 $ 3,624.38
Transfer to/from Operating Reserve $ - - $
$ 3,624.38 1,224.82 $

OPERATING RESERVE
Beginning Fund Balance (July 1st) $ 53,022.00 $ 55,363.82 Operating Reserve Set-a-side $ 23,607.56 $ 23,299.38
Transfer from (to) Annual Operating Balance $ 21,265.74 $ 19,675.00 Ending Operating Reserve Balance (June 30th) $ 55,363.82 $ 58,988.20

FACILITY REPLACEMENT RESERVE
Beginning Facility Replacement Balance (July 1st) $ - $ - Annual Replacement Set-aside $ - $ -
Subtract Replacement Project Cost $ - $ -
EndingFacility Replacement Balance (June 30th) $ - $ -
TOTAL RESERVE $ 55,363.82 $ 58,988.20
**
$xx.xx
Annual Operating Balance
Annual Ending Balance
Recorded actual expenses for the first 3 quarters of the current Fiscal Year plus Audited Fund Balance from previous Fiscal Year
Item 10
52 FIGURE 7.4
ASSESSMENT DISTRICT 03-01 ZONE 2 for STOCK RANCH (RESIDENTIAL PARCELS) Assessment
Diagram #
Assessment
Amount
243 0590 026 0000 1 $ 98.36
243 0590 027 0000 2 $ 98.36
243 0590 028 0000 3 $ 98.36
243 0590 029 0000 4 $ 98.36
243 0590 030 0000 5 $ 98.36
243 0590 031 0000 6 $ 98.36
243 0590 032 0000 7 $ 98.36
243 0590 033 0000 8 $ 98.36
243 0590 034 0000 9 $ 98.36
243 0590 035 0000 10 98.36 $
243 0590 036 0000 11 98.36 $
243 0590 037 0000 12 98.36 $
243 0590 038 0000 13 98.36 $
243 0590 039 0000 14 98.36 $
243 0590 040 0000 15 98.36 $
243 0590 041 0000 16 98.36 $
243 0590 042 0000 17 98.36 $
243 0590 043 0000 18 98.36 $
243 0590 044 0000 19 98.36 $
243 0590 045 0000 20 98.36 $
243 0590 046 0000 21 98.36 $
243 0590 047 0000 22 98.36 $
243 0590 048 0000 23 98.36 $
243 0590 049 0000 24 98.36 $
243 0590 050 0000 25 98.36 $
243 0590 051 0000 26 98.36 $
243 0590 052 0000 27 98.36 $
243 0590 053 0000 28 98.36 $
243 0590 054 0000 29 98.36 $
243 0590 055 0000 30 98.36 $
243 0590 056 0000 31 98.36 $
243 0590 057 0000 32 98.36 $
243 0590 058 0000 33 98.36 $
243 0590 059 0000 34 98.36 $
243 0590 060 0000 35 98.36 $
243 0590 061 0000 36 98.36 $
243 0590 062 0000 37 98.36 $
243 0590 063 0000 38 98.36 $
243 0590 064 0000 39 98.36 $
243 0590 065 0000 40 98.36 $
243 0590 066 0000 41 98.36 $
243 0590 067 0000 42 98.36 $
243 0590 068 0000 43 98.36 $
243 0590 069 0000 44 98.36 $
243 0590 070 0000 45 98.36 $
243 0590 071 0000 46 98.36 $
243 0590 072 0000 47 98.36 $
211 0590 001 0000 48 98.36 $
211 0880 002 0000 49 98.36 $
Subtotal = 4,819.64 $
Tax Assessor's Number
Item 10
53 ASSESSMENT DISTRICT 03-01 ZONE 2 for STOCK RANCH (RESIDENTIAL PARCELS) Assessment
Diagram #
Assessment
Amount
211 0880 003 0000 50 98.36 $
211 0880 004 0000 51 98.36 $
211 0880 005 0000 52 98.36 $
211 0880 006 0000 53 98.36 $
211 0880 007 0000 54 98.36 $
211 0880 008 0000 55 98.36 $
211 0880 009 0000 56 98.36 $
211 0880 010 0000 57 98.36 $
211 0880 011 0000 58 98.36 $
211 0880 012 0000 59 98.36 $
211 0880 013 0000 60 98.36 $
211 0880 014 0000 61 98.36 $
211 0880 015 0000 62 98.36 $
211 0880 016 0000 63 98.36 $
211 0880 017 0000 64 98.36 $
211 0880 018 0000 65 98.36 $
211 0880 019 0000 66 98.36 $
211 0880 020 0000 67 98.36 $
211 0880 021 0000 68 98.36 $
211 0880 022 0000 69 98.36 $
211 0880 023 0000 70 98.36 $
243 0590 073 0000 71 98.36 $
243 0590 074 0000 72 98.36 $
243 0590 075 0000 73 98.36 $
243 0590 001 0000 74 98.36 $
243 0590 002 0000 75 98.36 $
243 0590 003 0000 76 98.36 $
243 0590 004 0000 77 98.36 $
243 0590 005 0000 78 98.36 $
243 0590 006 0000 79 98.36 $
243 0590 007 0000 80 98.36 $
243 0590 008 0000 81 98.36 $
243 0590 009 0000 82 98.36 $
243 0590 010 0000 83 98.36 $
243 0590 011 0000 84 98.36 $
243 0590 012 0000 85 98.36 $
243 0590 013 0000 86 98.36 $
243 0590 014 0000 87 98.36 $
243 0590 015 0000 88 98.36 $
243 0590 016 0000 89 98.36 $
243 0590 017 0000 90 98.36 $
243 0590 018 0000 91 98.36 $
243 0590 019 0000 92 98.36 $
243 0590 020 0000 93 98.36 $
243 0590 021 0000 94 98.36 $
243 0590 022 0000 95 98.36 $
243 0590 023 0000 96 98.36 $
243 0590 024 0000 97 98.36 $
243 0590 025 0000 98 98.36 $
Subtotal = 4,819.64 $
Tax Assessor's Number
Item 10
54 ASSESSMENT DISTRICT 03-01 ZONE 2 for STOCK RANCH (RESIDENTIAL PARCELS) Assessment
Diagram #
Assessment
Amount
211 0880 026 0000 104 98.36 $
211 0880 027 0000 105 98.36 $
211 0880 028 0000 106 98.36 $
211 0880 029 0000 107 98.36 $
211 0880 030 0000 108 98.36 $
211 0880 031 0000 109 98.36 $
211 0880 032 0000 110 98.36 $
211 0880 033 0000 111 98.36 $
211 0880 034 0000 112 98.36 $
211 0880 035 0000 113 98.36 $
211 0880 036 0000 114 98.36 $
211 0880 037 0000 115 98.36 $
211 0880 038 0000 116 98.36 $
211 0880 039 0000 117 98.36 $
211 0880 040 0000 118 98.36 $
211 0880 041 0000 119 98.36 $
211 0880 042 0000 120 98.36 $
211 0590 081 0000 121 98.36 $
211 0590 082 0000 122 98.36 $
211 0590 083 0000 123 98.36 $
211 0590 084 0000 124 98.36 $
211 0590 085 0000 125 98.36 $
211 590 086 0000 126 98.36 $
Subtotal = 2,262.28 $
Sub-total Assessment - 121 Residential Parcels = 11,901.56 $ Tax Assessor's Number
Item 10
55 ASSESSMENT DISTRICT 03-01 – ZONE 2 (COMMERCIAL PARCELS) Revised Tax Assessor's Number*
Assessment Diagram
# Area (acres) Amount per Acre Total Assessment
243 0010 045 0000 99 8.00 $ 491.70 $ 3,933.60
243 0010 051 0000 100 0.55 $ 491.70 $ 270.44
243 0010 050 0000 101 1.77 $ 491.70 $ 870.30
243 0010 027 0000** 102 11.08 $ 491.70 $ 5,448.04
243 0020 051 0000 103 1.78 $ 491.70 $ 875.22
Sub-total Assessment - 5 Commercial Parcels in 03-01, Zone 2 = $ 11,397.58 *based on current county parcel viewer data; reflects lot splits and new assigned parcel numbers **no change to parcel number.

Grand Total Assessment (Residential & Commercial Parcels) = $ 23,299.14 Item 10
56 ASSESSMENT DISTRICT 03-01 – Zone 3 (Mitchell Farms Subdivision)

GENERAL
Landscape Maintenance Assessment District (LMAD) 03-01, Zone 3 (Mitchell Farms Subdivision), first created by City Council action on April 23, 2020, is located east of Sunrise Boulevard, north of Arcadia Drive, and west of Fair Oaks Boulevard. This LMAD provides for the maintenance of a large open-space lot within the Mitchell Farms Subdivision development and landscaping within a roundabout on Arcadia Drive. All improvements are on public property.

There are 258 residential parcels in this district, whose boundaries are more particularly described on the Assessment Diagram contained in Figure 8.1.

This subdivision of land, covered by Zone 3, includes 258 residential lots, one public park lot (Lot A) and 51 common area and alley lots owned and maintained by the Homeowners Association (HOA). Upon recordation of the Final Map and completion of the construction of the park improvements, Lot A will be dedicated to Sunrise Recreation and Parks District (SRPD).

To supplement the available funding for the long-term maintenance and replacement costs for the improvements within Lot A and the landscaping and irrigation within the new Arcadia Drive roundabout, the development was conditioned to create a new Landscape Maintenance Assessment District (LMAD).

Public amenities in Zone 3, to be maintained on an annual basis with this LMAD funding, include trees, natural grasses, irrigation systems, pedestrian/bike pathways, pathway lighting and bridges within the open-space lot (Lot A) and landscaping and irrigation system within the Arcadia Drive roundabout. On-going maintenance of the landscaped areas requires routine care of trees, shrubs, and groundcover, including weed control, fertilization, mulch replacement, litter removal and irrigation systems. The pedestrian pathways and associated bridges require routine maintenance, including surface and structural maintenance, maintenance and repairs of pathway lighting and graffiti abatement.

In addition to regular annual maintenance, the facilities in Zone 3 (pedestrian/bike pathway, bridges, pathway lighting system, irrigation system, roundabout landscape and irrigation) require periodic major repairs and/or replacement. Zone 3 provides a funding set-aside for long-term capital replacement of these items.

Figure 8.2 contains a detailed listing of items to be maintained and/or replacement of each of the items. City and the SRPD perform/manage the maintenance for the LMAD using its own forces or those of contract providers.

Item 10
57 DISTRICT FINANCING/METHOD OF ASSESSMENT
As a condition of approval, the developer of the single-family Mitchell Farms Subdivision was required to establish a funding source to provide for ongoing maintenance of the landscaping include trees, natural grasses, irrigation systems, pedestrian/bike pathways, pathway lighting and bridges within the open-space lot (Lot A) and landscaping and irrigation system within the Arcadia Drive roundabout. The funding for LMAD 03-01, Zone 3 will be from annual assessments levied on property within the zone’s assessment boundary (Figure 8.1), pursuant to the Landscaping and Lighting Act of 1972. Because each of the single-family lots within the zone was created as a result of compliance with this condition, each lot benefits in the same proportion. Therefore, the assessment costs are allocated on a per parcel basis for all assessment diagram parcels located in the Assessment District that qualified as a buildable single-family parcel per the current City of Citrus Heights Zoning Ordinances.

The method used to spread the initial assessments for each lot are as follows:
• Zone 3 consists of 258 residential lots, 30 lettered HOA landscape lots, 20 alley lots, and one public park lot (Lot A).
• The costs of the maintenance for the improvements within Mitchell Farms are to be allocated as follows:
• The assessment for each Assessor’s Parcel is calculated by dividing the total annual cost, by the total number of residential lots within the subdivision. As follows: Annual cost/number of lots = Annual cost of $88,851.20 divided by 258 lots = $344.38 per lot per year.
• The formation of this district also included a cost-of-living adjustment provision. Should the cost of landscape maintenance activities and utilities rise, this provision allows for the City of Citrus Heights to increase the annual assessment by an amount not to exceed a maximum of four percent 4% per year.

The development is currently under construction, so the developer has agreed to maintain the landscaped areas and other features until the proposed improvements are formally accepted by the agencies (Sunrise Recreation and Parks District for Lot A and the City of Citrus Heights for the Arcadia Drive roundabout).

ANNUAL ASSESSMENT
Annual adjustments in the assessment rate are proposed for Fiscal Year 2026/2027. As shown in Figure 8.3. “Summary Analysis”, the Fiscal Year 2026/2027 assessments for District 03- 01 Zone 3 are again proposed to increase by 3% (less than the maximum allowable 4%) over the rates charged in FY 2025/2026. This results in increases to approximately $372.62 per residential parcel. These additional revenues are necessary to support the extensive maintenance needs for the District, develop a sufficient capital replacement reserve for the extensive public facilities contained with Zone 3, such as bridges, paved trails, lighting and playground equipment, owned and maintained by the Sunrise Recreation and Park District, as well as minor maintenance services provided by the City through contract services.

Item 10
58 The district’s Assessment Roll is contained in Figure 8.4.

BOUNDARY DESCRIPTION OF AREA TO BE MAINTAINED
All that real property situated in the City of Citrus Heights, County of Sacramento, State of California, which is further described as follows:

Lot A of the Mitchell Farms Subdivision and the adjacent Arcadia Drive roundabout; more particularly described on the Assessment Diagram contained in Figure 8.1.

Item 10
59 FIGURE 8.1

Item 10
60 FIGURE 8.2
ASSESSMENT DISTRICT NO. 03-01
Zone 3 (Mitchell Farms Subdivision)

MAINTENANCE SPECIFICATION
1) Maintain pedestrian pathway (Lot A). Clean all graffiti as needed. Perform structural repairs/replacement as needed. This item includes repair and materials to maintain the light bollards along the pathway.
2) Maintain pedestrian pathway bridges (Lot A). Clean all graffiti as needed. Perform structural repairs/replacement to handrails, deck, abutments and other bridge appurtenances as needed.
3) Maintain the creek open space (Lot A). Keep the existing creek open space free from debris to assure flow of Arcade Creek, maintain irrigation system and regular inspection and pruning for health of all trees (including planted mitigation trees), Mow open-space as needed for fuel-load management and appearance.
4) Maintain trees and other plantings a minimum of once every two weeks in the planters (center of roundabout and three approach islands) at the Arcadia Drive roundabout.

Maintain irrigation system as needed to ensure proper operation and optimum health of the plantings. Weed area a minimum of once every two weeks. Fertilize area a minimum of twice per year. Control infestation of fungus, diseases and/or insects. This item includes irrigation repair, landscaping materials (wood chips, chemicals, etc.), and replanting as needed.

Item 10
61 FIGURE 8.3
ASSESSMENT DISTRICT 03-01 ZONE 3
29655289; County DL1128
DESCRIPTION FY 25/26**
ACTUAL
FY 26/27

PROPOSED
BUDGET
ASSESSMENT RATES:

Rate Per Parcel $361.78 $372.62
Total Number of Parcels 258 258
Total Special Assessments $93,339.24 $96,135.96
REVENUE:

Release from Maintenance/Repair Reserve Balance $0.00 $0.00 Release from Facility Replacement Reserve Balance $0.00 $0.00 Interest on Fund Balance $5,980.56 $0.00
Special Assessments $92,765.55 $96,135.96
Contributions (SRPD Participation) $0.00
Other Revenue $0.00 $0.00
Total Revenue: $98,746.11 $96,135.96
EXPENDITURES:

Materials and Supplies $0.00 $0.00
Advertising & Mail $0.00 $365.00
Utilities $200.50 $300.00
City Contract Landscape $0.00 $1,200.00
SRPD Maintenance $18,495.00 $67,000.00
Cost Allocation* (Overhead) $0.00 $0.00
Maintenance/Repair Annual Accrual (3) $5,349.85 $5,349.85 Facility Replacement Annual Accrual (3) $51,416.42 $21,921.11 Total Expenditures: $75,461.77 $96,135.96
$23,284.34 $0.00
Transfer to Maintenance/Repair Reserve -$23,284.34 $0.00 $0.00 $0.00

ACCRUAL SUMMARY

MAINTENANCE/REPAIR RESERVE
Beginning Maintenance/Repair Reserve Balance (7/1) $ 162,957.96 $191,592.15 Release to Revenue (to cover annual operating costs) $0.00 $0.00 Maintenance/Repair Reserve Annual Accrual $5,349.85 $5,349.85 Transfer from Annual Operating Balance $23,284.34 $0.00 Ending Maintenance/Repair Reserve Balance (6/30) $ 191,592.15 $ 196,942.00

FACILITY REPLACEMENT RESERVE
Beginning Facility Replacement Reserve Balance (7/1) $ 216,014.04 $267,430.46 Release to Revenue (for scheduled facility replacement) $0.00 $0.00 Facility Replacement Annual Accrual $51,416.42 $21,921.11 Ending Facility Replacement Reserve Balance (6/30) $267,430.46 $289,351.57 *
$xx.xx Audited Fund Balance from previous Fiscal Year
Annual Operating Balance
Annual Ending Balance
Annual set-aside amounts from Exhibits D1 & D2 in original Engineer's Report dated April 23, 2020. Adjustments made in consideration of large replacement reserve ahead of taking possession of property, and need to free up maintenance funds for SRPD maintenance needs.

Item 10
62 FIGURE 8.4
ASSESSMENT DISTRICT 03-01 ZONE 3
for Mitchell Village
Assessment
Diagram #
Assessment
Amount
Assessment
Diagram # Assessment
Amount
243 0600 001 0000 1 $ 372.62 243 0610 023 0000 49 $ 372.62 243 0600 002 0000 2 $ 372.62 243 0610 024 0000 50 $ 372.62 243 0600 003 0000 3 $ 372.62 243 0610 025 0000 51 $ 372.62 243 0600 004 0000 4 $ 372.62 243 0610 026 0000 52 $ 372.62 243 0600 005 0000 5 $ 372.62 243 0610 027 0000 53 $ 372.62 243 0600 006 0000 6 $ 372.62 243 0610 028 0000 54 $ 372.62 243 0600 007 0000 7 $ 372.62 243 0610 029 0000 55 $ 372.62 243 0600 008 0000 8 $ 372.62 243 0610 030 0000 56 $ 372.62 243 0600 009 0000 9 $ 372.62 243 0610 031 0000 57 $ 372.62 243 0600 010 0000 10 $ 372.62 243 0610 032 0000 58 $ 372.62 243 0600 011 0000 11 $ 372.62 243 0610 033 0000 59 $ 372.62 243 0600 012 0000 12 $ 372.62 243 0610 034 0000 60 $ 372.62 243 0600 013 0000 13 $ 372.62 243 0610 035 0000 61 $ 372.62 243 0600 014 0000 14 $ 372.62 243 0610 036 0000 62 $ 372.62 243 0600 015 0000 15 $ 372.62 243 0610 037 0000 63 $ 372.62 243 0600 016 0000 16 $ 372.62 243 0610 038 0000 64 $ 372.62 243 0600 017 0000 17 $ 372.62 243 0610 039 0000 65 $ 372.62 243 0600 018 0000 18 $ 372.62 243 0610 040 0000 66 $ 372.62 243 0600 019 0000 19 $ 372.62 243 0610 041 0000 67 $ 372.62 243 0600 020 0000 20 $ 372.62 243 0610 042 0000 68 $ 372.62 243 0600 021 0000 21 $ 372.62 243 0610 043 0000 69 $ 372.62 243 0600 022 0000 22 $ 372.62 243 0610 044 0000 70 $ 372.62 243 0600 023 0000 23 $ 372.62 243 0610 045 0000 71 $ 372.62 243 0600 024 0000 24 $ 372.62 243 0610 046 0000 72 $ 372.62 243 0600 025 0000 25 $ 372.62 243 0610 047 0000 73 $ 372.62 243 0600 026 0000 26 $ 372.62 243 0610 048 0000 74 $ 372.62 243 0610 001 0000 27 $ 372.62 243 0610 049 0000 75 $ 372.62 243 0610 002 0000 28 $ 372.62 243 0610 050 0000 76 $ 372.62 243 0610 003 0000 29 $ 372.62 243 0610 051 0000 77 $ 372.62 243 0610 004 0000 30 $ 372.62 243 0610 052 0000 78 $ 372.62 243 0610 005 0000 31 $ 372.62 243 0610 053 0000 79 $ 372.62 243 0610 006 0000 32 $ 372.62 243 0610 054 0000 80 $ 372.62 243 0610 007 0000 33 $ 372.62 243 0610 055 0000 81 $ 372.62 243 0610 008 0000 34 $ 372.62 243 0610 056 0000 82 $ 372.62 243 0610 009 0000 35 $ 372.62 243 0610 057 0000 83 $ 372.62 243 0610 010 0000 36 $ 372.62 243 0610 058 0000 84 $ 372.62 243 0610 011 0000 37 $ 372.62 243 0610 059 0000 85 $ 372.62 243 0610 012 0000 38 $ 372.62 243 0610 060 0000 86 $ 372.62 243 0610 013 0000 39 $ 372.62 243 0610 061 0000 87 $ 372.62 243 0610 014 0000 40 $ 372.62 243 0610 062 0000 88 $ 372.62 243 0610 015 0000 41 $ 372.62 243 0610 063 0000 89 $ 372.62 243 0610 016 0000 42 $ 372.62 243 0610 064 0000 90 $ 372.62 243 0610 017 0000 43 $ 372.62 243 0610 065 0000 91 $ 372.62 243 0610 018 0000 44 $ 372.62 243 0610 066 0000 92 $ 372.62 243 0610 019 0000 45 $ 372.62 243 0610 067 0000 93 $ 372.62 243 0610 020 0000 46 $ 372.62 243 0610 068 0000 94 $ 372.62 243 0610 021 0000 47 $ 372.62 243 0610 069 0000 95 $ 372.62 243 0610 022 0000 48 $ 372.62 243 0610 070 0000 96 $ 372.62 Subtotal = 17,885.76 $ Subtotal = 17,885.76 $
Tax Assessor's Number Tax Assessor's Number
Item 10
63 ASSESSMENT DISTRICT 03-01 ZONE 3
for Mitchell Village
Assessment
Diagram # Assessment
Amount
Assessment
Diagram # Assessment
Amount
243 0610 071 0000 97 $ 372.62 243 0620 042 0000 145 372.62 $ 243 0610 072 0000 98 $ 372.62 243 0620 043 0000 146 372.62 $ 243 0610 073 0000 99 $ 372.62 243 0620 044 0000 147 372.62 $ 243 0610 074 0000 100 372.62 $ 243 0620 045 0000 148 372.62 $ 243 0610 075 0000 101 372.62 $ 243 0620 046 0000 149 372.62 $ 243 0610 076 0000 102 372.62 $ 243 0620 047 0000 150 372.62 $ 243 0610 077 0000 103 372.62 $ 243 0620 048 0000 151 372.62 $ 243 0620 001 0000 104 372.62 $ 243 0620 049 0000 152 372.62 $ 243 0620 002 0000 105 372.62 $ 243 0620 050 0000 153 372.62 $ 243 0620 003 0000 106 372.62 $ 243 0620 051 0000 154 372.62 $ 243 0620 004 0000 107 372.62 $ 243 0620 052 0000 155 372.62 $ 243 0620 005 0000 108 372.62 $ 243 0620 053 0000 156 372.62 $ 243 0620 006 0000 109 372.62 $ 243 0620 054 0000 157 372.62 $ 243 0620 007 0000 110 372.62 $ 243 0620 055 0000 158 372.62 $ 243 0620 008 0000 111 372.62 $ 243 0620 056 0000 159 372.62 $ 243 0620 009 0000 112 372.62 $ 243 0620 057 0000 160 372.62 $ 243 0620 010 0000 113 372.62 $ 243 0620 058 0000 161 372.62 $ 243 0620 011 0000 114 372.62 $ 243 0620 059 0000 162 372.62 $ 243 0620 012 0000 115 372.62 $ 243 0620 060 0000 163 372.62 $ 243 0620 013 0000 116 372.62 $ 243 0630 001 0000 164 372.62 $ 243 0620 014 0000 117 372.62 $ 243 0630 002 0000 165 372.62 $ 243 0620 015 0000 118 372.62 $ 243 0630 003 0000 166 372.62 $ 243 0620 016 0000 119 372.62 $ 243 0630 004 0000 167 372.62 $ 243 0620 017 0000 120 372.62 $ 243 0630 005 0000 168 372.62 $ 243 0620 018 0000 121 372.62 $ 243 0630 006 0000 169 372.62 $ 243 0620 019 0000 122 372.62 $ 243 0630 007 0000 170 372.62 $ 243 0620 020 0000 123 372.62 $ 243 0630 008 0000 171 372.62 $ 243 0620 021 0000 124 372.62 $ 243 0630 009 0000 172 372.62 $ 243 0620 022 0000 125 372.62 $ 243 0630 010 0000 173 372.62 $ 243 0620 023 0000 126 372.62 $ 243 0630 011 0000 174 372.62 $ 243 0620 024 0000 127 372.62 $ 243 0630 012 0000 175 372.62 $ 243 0620 025 0000 128 372.62 $ 243 0630 013 0000 176 372.62 $ 243 0620 026 0000 129 372.62 $ 243 0630 014 0000 177 372.62 $ 243 0620 027 0000 130 372.62 $ 243 0630 015 0000 178 372.62 $ 243 0620 028 0000 131 372.62 $ 243 0630 016 0000 179 372.62 $ 243 0620 029 0000 132 372.62 $ 243 0630 017 0000 180 372.62 $ 243 0620 030 0000 133 372.62 $ 243 0630 018 0000 181 372.62 $ 243 0620 031 0000 134 372.62 $ 243 0630 019 0000 182 372.62 $ 243 0620 032 0000 135 372.62 $ 243 0630 020 0000 183 372.62 $ 243 0620 033 0000 136 372.62 $ 243 0630 021 0000 184 372.62 $ 243 0620 034 0000 137 372.62 $ 243 0630 022 0000 185 372.62 $ 243 0620 035 0000 138 372.62 $ 243 0630 023 0000 186 372.62 $ 243 0620 036 0000 139 372.62 $ 243 0630 024 0000 187 372.62 $ 243 0620 037 0000 140 372.62 $ 243 0630 025 0000 188 372.62 $ 243 0620 038 0000 141 372.62 $ 243 0630 026 0000 189 372.62 $ 243 0620 039 0000 142 372.62 $ 243 0630 027 0000 190 372.62 $ 243 0620 040 0000 143 372.62 $ 243 0630 028 0000 191 372.62 $ 243 0620 041 0000 144 372.62 $ 243 0630 029 0000 192 372.62 $ Subtotal = 17,885.76$ Subtotal = 17,885.76 $
Tax Assessor's Number Tax Assessor's Number
Item 10
64 ASSESSMENT DISTRICT 03-01 ZONE 3
for Mitchell Village
Assessment
Diagram # Assessment
Amount
Assessment
Diagram # Assessment Amount
243 0630 030 0000 193 372.62 $ 243 0630 078 0000 241 372.62 $ 243 0630 031 0000 194 372.62 $ 243 0630 079 0000 242 372.62 $ 243 0630 032 0000 195 372.62 $ 243 0630 080 0000 243 372.62 $ 243 0630 033 0000 196 372.62 $ 243 0630 081 0000 244 372.62 $ 243 0630 034 0000 197 372.62 $ 243 0630 082 0000 245 372.62 $ 243 0630 035 0000 198 372.62 $ 243 0630 083 0000 246 372.62 $ 243 0630 036 0000 199 372.62 $ 243 0630 084 0000 247 372.62 $ 243 0630 037 0000 200 372.62 $ 243 0630 085 0000 248 372.62 $ 243 0630 038 0000 201 372.62 $ 243 0630 086 0000 249 372.62 $ 243 0630 039 0000 202 372.62 $ 243 0630 087 0000 250 372.62 $ 243 0630 040 0000 203 372.62 $ 243 0630 088 0000 251 372.62 $ 243 0630 041 0000 204 372.62 $ 243 0630 089 0000 252 372.62 $ 243 0630 042 0000 205 372.62 $ 243 0630 090 0000 253 372.62 $ 243 0630 043 0000 206 372.62 $ 243 0630 091 0000 254 372.62 $ 243 0630 044 0000 207 372.62 $ 243 0630 092 0000 255 372.62 $ 243 0630 045 0000 208 372.62 $ 243 0630 093 0000 256 372.62 $ 243 0630 046 0000 209 372.62 $ 243 0630 094 0000 257 372.62 $ 243 0630 047 0000 210 372.62 $ 243 0630 095 0000 258 372.62 $ 243 0630 048 0000 211 372.62 $ Subtotal = 6,707.16 $
243 0630 049 0000 212 372.62 $
243 0630 050 0000 213 372.62 $
243 0630 051 0000 214 372.62 $
243 0630 052 0000 215 372.62 $ Total 03-01 Zone 3 Assessments (258 Parcels) is $ 96,135.96 243 0630 053 0000 216 372.62 $
243 0630 054 0000 217 372.62 $
243 0630 055 0000 218 372.62 $
243 0630 056 0000 219 372.62 $
243 0630 057 0000 220 372.62 $
243 0630 058 0000 221 372.62 $
243 0630 059 0000 222 372.62 $
243 0630 060 0000 223 372.62 $
243 0630 061 0000 224 372.62 $
243 0630 062 0000 225 372.62 $
243 0630 063 0000 226 372.62 $
243 0630 064 0000 227 372.62 $
243 0630 065 0000 228 372.62 $
243 0630 066 0000 229 372.62 $
243 0630 067 0000 230 372.62 $
243 0630 068 0000 231 372.62 $
243 0630 069 0000 232 372.62 $
243 0630 070 0000 233 372.62 $
243 0630 071 0000 234 372.62 $
243 0630 072 0000 235 372.62 $
243 0630 073 0000 236 372.62 $
243 0630 074 0000 237 372.62 $
243 0630 075 0000 238 372.62 $
243 0630 076 0000 239 372.62 $
243 0630 077 0000 240 372.62 $
Subtotal = 17,885.76 $
Tax Assessor's Number Tax Assessor's Number
Item 10

CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE: June 24, 2026
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FROM: Regina Cave, General Services Director
Leslie Blomquist, City Engineer
SUBJECT: Citrus Heights Lighting Assessment District
Initiate Proceedings for Fiscal Year 2026/2027 Annual Update Recommendation
Each year, the City updates the assessments for the Citrus Heights Lighting District (CHLD). To initiate annual assessment proceedings, the City Council must first adopt a Resolution Initiating Proceedings for the Fiscal Year 2026/2027 update. Next, City Council must adopt a Resolution of Intention setting the time and date for a public hearing on the proposed assessments and directing staff to publish the appropriate notice of the hearing. An Engineer's Report, prepared by the City Engineer, is attached hereto and describes the levels of maintenance, outlines the proposed financial summary, and includes the assessment diagram for the CHLD.

No changes are recommended to the assessment rates in conjunction with the annual update of the CHLD. However, over the past fiscal year, new streetlights and infrastructure have been installed at various locations throughout the City. Staff have updated the assessment role to reflect the new rates for several individual parcels that now benefit from the newly installed lighting.

Staff recommends the City Council approve the resolutions below, in order:

1. Resolution No. 2026-___: A Resolution of the City Council of the City of Citrus Heights, California, to Initiate Proceedings Pursuant to the Landscaping and Lighting Act of 1972 for the Citrus Heights Lighting District

2. Resolution No. 2026-___: A Resolution of the City Council of the City of Citrus Heights, California, for the Intention to Levy and Collect Assessments for Fiscal Year 2026/2027 for the Citrus Heights Lighting District
Strategic Plan Alignment
This item aligns with the following Citrus Heights City Council Strategic Plan Three Year Goal:

Goal: “Maintain Public Infrastructure and Enhance All Modes of Transportation.” Item 11
Fiscal Impact
For Fiscal Year 2026/2027, the annual special assessment revenue and reimbursement from Caltrans for several shared facilities are projected to cover a portion of the CHLD’s anticipated expenditures. However, as a result of the continuing increases in electrical power costs and the ongoing repairs related to aging equipment, the proposed Fiscal Year 2026/2027 budget reflects an anticipated shortfall of approximately $113,590.72.

In FY 21/22 the City upgraded 593 street lights to low energy LED models utilizing a low interest (1%) loan granted by the California Energy Commission. While this effort resulted in annual electricity cost savings, the City began repayment of the loan in FY 22/23 which is paid for utilizing associated energy cost savings.

During this past FY (FY 25/26), the City added a Senior Traffic Signal and Lighting Technician to enhance in-house capability as part of the ongoing effort to reduce costs, improve operational efficiency, and increase response times. With this added staffing, it is anticipated that the scope of the existing contract for unscheduled street light maintenance (knockdowns and repairs) will be substantially reduced as this staff position will perform the majority of regular street light maintenance and initial emergency response tasks in-house.

A summary of the CHLD budget is as follows:

Description FY 25/26
Actual
FY 26/27
Anticipated
REVENUE:

Special Assessments(1) $330,941.57 $334,000.00
Shared Maintenance Cost Reimbursement from Caltrans $112.82 $115.00 Interest Earned $64.04 $65.00
Total District Funding $331,118.43 $334,180.00
EXPENDITURES:

SMUD Electric Costs(1) $243,451.26 $244,000.00
Unscheduled Maintenance Costs and Knockdowns(1) $155,737.00 $35,000.00 Streetlight Materials and Supplies(2) $20,304.47 $45,000.00 Streetlight Maintenance Salary Allocations(2) $0.00 $76,600.00 CEC Loan Repayment(3) $23,155.72 $23,155.72
Other Costs $22,891.96 $24,015.00
Total District Expenditures $465,540.41 $447,770.72
DISTRICT SHORTFALL -$134,421.98 -$113,590.72
Item 11
(1) At the time this staff report was written, June 2026 utility and June 2026 unscheduled maintenance costs had yet to be finalized. Special Assessments have yet to be finalized.

Costs are estimated.
(2) In 2026, the City hired a Senior Traffic Signal & Lighting Technician. This position is responsible to perform in-house routine street light maintenance; requiring salary allocation and material procurement.
(3) FY 26/27 represents the 5th year for repayment of a low interest (1%) Energy Efficiency Loan from the California Energy Commission (CEC) for conversion of 593 streetlights to energy efficient models. Actual energy cost savings will be used to repay the loan.

There is no impact to the General Fund. Measure A Maintenance funds (Fund 210) are proposed to supplement the special assessments to cover the CHLD budget shortfall.

With the passage of Proposition 218 in 1996, lighting assessment rates were effectively fixed at the rates in effect at that time unless increased by a two-thirds vote through the constituents of the City. Accordingly, the assessment rates were unchanged for Fiscal Year 25/26 and, as summarized in the table below, no changes are recommended for Fiscal Year 26/27.

Assessment Rate
FY 2026/2027 Rates
(Unchanged from FY 2025/2026 Rates)
Safety Light Only $2.56/parcel
Street Light (single family residential) $15.32/parcel
Safety and Street Light (single family residential) $17.88/parcel Safety and Street Light (non-single family
residential)
$2.56/parcel + $0.2519 per linear foot of
frontage
During Fiscal Year 25/26, CHLD (Fund 289) had a shortfall of $134,421.98, which was covered using Measure A Maintenance funds (Fund 210).

Background and Analysis
Sacramento County created County Service Area No. 1 (CSA-1) to provide funding to operate and maintain street and safety lights throughout the County. In June 2005, the City Council voted to begin the process of detaching from CSA-1 to improve levels of service on safety and street lighting within the City. In June 2006, the City completed the process by forming the CHLD and became fully responsible for operation and maintenance of all street and safety lights within the City.

Pursuant to the Landscaping and Lighting Act of 1972, assessment districts of this type must be updated annually. A Resolution to Initiate Proceedings is required as the first action of the City Council to initiate the update of the CHLD. Subsequent approval of the assessments to be levied and collected will provide funding for operating expenses, equipment, materials, maintenance, and contract services necessary to maintain street and safety lights for the CHLD.

Item 11
By the Resolution of Intention, the City Council approves the Engineer’s Report for the CHLD Annual Update for Fiscal Year 26/27, sets the date for a public hearing on the assessments, and directs staff to give the required notice.

Staff recommends July 8, 2026, 6:00 P.M. or as soon thereafter, be set as the date and time for the public hearing. At that time, City Council will receive public comment and consider adopting the required resolutions. Notice of this meeting will be published in accordance with State code.

Staff have reviewed the anticipated expenditures and revenues and have developed a Fiscal Year 26/27 budget for the CHLD. An Engineer’s Report has been prepared for the proposed assessments and a copy is attached. The Engineer’s Report summarizes the maintenance effort and proposes levying assessments at the same level as in Fiscal Year 25/26.

Through ongoing analysis of the District, the City has substantially improved the level of service related to street light maintenance and operations and fine-tuned the scope of the annual maintenance contract. Over the past several years, continued staff efforts have resulted in reductions to the annual expenses. Currently, a total of 3,453 energy efficient LED lights (approximately 71.5% of the District’s total inventory) have been installed and/or converted from existing streetlights. Early efforts to install more efficient LED lighting and lower annual maintenance rates reduced the District’s total expenditures. However, continued increases in electric utility rates, increased frequency of repairs to aging street lighting infrastructure, and damages due to vehicular crashes have offset these cost savings resulting in a projected shortfall of approximately $113,590.72 for Fiscal Year 26/27. The addition of safety lights included in the City’s Capital Improvement Projects (CIPs) and development projects have also increased electricity and maintenance costs. Staff proposes using Measure A Maintenance revenue to offset the estimated funding shortfall.

Staff continue to identify and evaluate additional measures to reduce District expenditures and offset rising electricity costs. In 2019, the City conducted a feasibility study evaluating the possibility to update various City-owned equipment and facilities with the goal of reducing energy costs. On April 8, 2020, the California Energy Commission (CEC) approved a low interest (1%) Energy Efficiency Loan for the implementation of an energy efficiency upgrade project consisting of a significant number of street light retrofits. In June 2021, a City-retained contractor began replacing existing streetlights with LED fixtures, which was completed in October 2021. As a result of the LED upgrades, the City’s electrical bills from the Sacramento Municipal Utility District (SMUD) decreased on average by 9.6% for the six-month period of December 2021 to May 2022 compared to the same timeframe the prior year.

In addition, LED conversions have become part of the regular maintenance program and staff continues to work with the Sacramento Municipal Utility District (SMUD) to ensure accurate billings, including quantities, type, and wattages for the entire District inventory. Monthly updates, LED conversions and changes are communicated to SMUD which are subsequently reflected in the monthly utility billings.

As part of the City’s ongoing effort to reduce costs, improve operational efficiency, and improve response times, the City added a Senior Traffic Signal and Lighting Technician in March 2026.

With this added capability, the City anticipates substantially reducing the scope of contracted Item 11
unscheduled street light maintenance, including knockdown repairs and other corrective action.

This position will allow the City to perform the majority of routine street light maintenance and initial emergency response tasks in-house.

No major expansion of the existing system, except for improvements included in grant-funded transportation projects or new development projects, will be considered until additional revenues are identified to support both the initial capital costs and the ongoing maintenance costs associated with system expansion.

Since the City assumed responsibility for the CHLD from Sacramento County in 2006, the District has operated with limited assessment revenue, and the City has implemented multiple cost-control measures, including LED conversions, maintenance contract refinements, and inventory verification for reduced maintenance costs where feasible. However, continued increases in utility rates, aging infrastructure repair needs, vehicle-related damage, and updated methods for allocating City overhead costs have contributed to the District’s ongoing funding shortfall. The underlying funding constraint is that the assessment rates, outlined in Fiscal Impact section above, have remained unchanged since 1996 when Proposition 218 was passed by the California voters, and any increase to assessment rates would require a vote of those assessed in compliance with the applicable Proposition 218 approval process.

Attachments

1. Resolution No. 2026-____ A Resolution of the City Council of the City of Citrus Heights, California, to Initiate Proceedings Pursuant to the Landscaping and Lighting Act of 1972 for the Citrus Heights Lighting District.

2. Resolution No. 2026-____ A Resolution of the City Council of the City of Citrus Heights, California, for the Intention to Levy and Collect Assessments for Fiscal Year 26/27 for the Citrus Heights Lighting District.

3. Engineer’s Report
Item 11
RESOLUTION NO. 2026-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS,

CALIFORNIA, TO INITIATE PROCEEDINGS PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972 FOR THE CITRUS HEIGHTS LIGHTING DISTRICT WHEREAS, In order to continue to finance the costs of maintaining and servicing street lights, highway safety lights and related facilities in the Citrus Heights Lighting District and to equitably distribute the costs among benefited landowners, the City Council of the City of Citrus Heights has decided to undertake proceedings pursuant to the Landscaping and Lighting Act of 1972, being California Streets and Highways Code Sections 22500 et seq. (the “Act”), to levy assessments for Fiscal Year 2026/2027.

NOW, THEREFORE, BE IT RESOLVED AND ORDERED that the City Council of the City of Citrus Heights does hereby declare:

Section 1. Recitals: The foregoing recitals are true and correct and the City Council so finds and determines.

Section 2. Proposal to levy assessments: The City Council proposes to levy assessments for Fiscal Year 2026/2027 for Citrus Heights Lighting District.

Section 3. Description of Improvements: The operations and maintenance to be financed by assessments levied in the City of Citrus Heights Lighting District consist of street lights, highway safety lights and associated facilities.

Section 5. Effective Date. This resolution shall become effective on and after the date of its passage.

The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 24th day of June, 2026, by the following vote, to wit:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:

Item 11

MariJane Lopez-Taff, Mayor
ATTEST:

Amy Van, City Clerk
Item 11
RESOLUTION NO. 2026-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS,

CALIFORNIA, FOR THE INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR FISCAL YEAR 2026/2027 FOR THE CITRUS HEIGHTS LIGHTING

DISTRICT
WHEREAS, on June 24, 2026, the City Council (the “Council”) of the City of Citrus Heights (the “City”) adopted Resolution No. 2026- ___ initiating proceedings pursuant to the Landscaping and Lighting Act of 1972, being California Streets and Highways Code sections 22500 et seq. (the “Act”), to levy and collect assessments for Fiscal Year 2026/2027 for the City of Citrus Heights Lighting District;
WHEREAS, the City Engineer has prepared and filed with the City Clerk a report for Fiscal Year 2026/2027 (the “Engineer’s Report”) in accordance with the Act; and WHEREAS, the establishment or approval of the assessments proposed by this resolution will be for the purpose of meeting operating expenses and purchasing supplies, equipment, or materials necessary to maintain service within existing service areas.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Citrus Heights does hereby:

Section 1. Recitals. The foregoing recitals are true and correct and this Council so finds and determines.

Section 2. Approval of Engineer’s Report. This Council hereby approves the Engineer’s Report as filed.

Section 3. Declaration of Intention. This Council hereby declares its intention to order the levy and collection of assessments for the City of Citrus Heights Lighting District.

Section 4. Description of Improvements. The Citrus Heights Lighting District's activities shall consist of the operation and maintenance of all lighting improvements and facilities within the City which are currently maintained and serviced through the Citrus Heights Lighting District, including highway safety lights and street lights. Highway safety lights are those lights located at intersections, on major streets and along the rear of properties that abut major streets. Street lights are all lights not designated as highway safety lights, and primarily consist of local street lighting.

Section 5. Location of District. The Citrus Heights Lighting District is described in the Engineer’s Report and is the entire area within the Citrus Heights City limits.

Section 6. Reference to Engineer’s Report for Particulars. A full and detailed description of the improvements, the boundaries of the assessment district, and the proposed assessments upon assessable lots and parcels of land within the district is set forth in the Engineer’s Report. The Engineer’s Report is on file in the City Clerk’s office, 6360 Fountain Square Drive, Citrus Heights, Item 11
CA 95621, and is available for review by any interested member of the public during normal business hours.

Section 7. Notice of Public Hearing. On Wednesday, July 8, 2026 at 6:00 p.m., or as soon thereafter as the matter may be heard, at the Citrus Heights City Hall Council Chambers, 6360 Fountain Square Drive, Citrus Heights, California, 95621 the City Council shall hold a public hearing on the levy of the proposed assessments.

Section 9. Amount of Assessment. The City does not propose to increase the assessment above last year’s amounts for Citrus Heights Lighting District.

Section 10. Effective Date. This resolution shall take effect from and after the date of its passage.

PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 24th day of June 2026, by the following vote to wit:

AYES: Council Members:

NOES: Council Members:

ABSENT: Council Members:

ABSTAIN: Council Members:

MariJane Lopez-Taff, Mayor
ATTEST:

Amy Van, City Clerk
Item 11

CITY OF CITRUS HEIGHTS

SACRAMENTO COUNTY

CALIFORNIA
ENGINEER’S REPORT
For
Citrus Heights Lighting District
Annual Update for Fiscal Year 2026/2027
Prepared by
Leslie Blomquist
City Engineer
June 24, 2026
Item 11
Citrus Heights Lighting District June 24, 2026
FY 2026/2027 Engineer’s Report Page i

CERTIFICATIONS

CITRUS HEIGHTS LIGHTING DISTRICT
(Pursuant to the Landscaping and Lighting Act of 1972)
Engineer’s Report for Fiscal Year 2026/2027
The undersigned respectfully submits the enclosed report as directed by the City Council.

DATED: ____________ __, 2026

CITY OF CITRUS HEIGHTS
By: __
Leslie Blomquist, P.E.

CITY ENGINEER
I HEREBY CERTIFY that the enclosed Engineer’s Report, together with Assessment Rates and Assessment Diagram thereto attached, was filed with me on the ________ day of ______________, 2026.

Amy Van, City Clerk
City of Citrus Heights,
Sacramento County, California
By:

I HEREBY CERTIFY that the enclosed Engineer’s Report, together with Assessment Rates and Assessment Diagram thereto attached, was approved and confirmed by the City Council of the City of Citrus Heights, California, on the _______________ day of __________________, 2026 Amy Van, City Clerk
City of Citrus Heights,
Sacramento County, California
By: ______________________________
I HEREBY CERTIFY that the enclosed Engineer’s Report, together with Assessment Rates and Assessment Diagram thereto attached, was filed with the County Auditor of the County of Sacramento on the _______________ day of __________________, 2026.

Amy Van, City Clerk
City of Citrus Heights,
Sacramento County, California
By: ______________________________

June 18
Item 11
Citrus Heights Lighting District June 24, 2026
FY 2026/2027 Engineer’s Report Page ii
Page ii
Table of Contents
Section I: Overview ................................................................................................................................ 1 Contents of the Engineer’s Report ............................................................................................... 1 Introduction and Background ....................................................................................................... 1 Section II: Plans and Specifications ..................................................................................................... 2 General Description of the District .............................................................................................. 2 Description of Services and Improvements to Be Maintained ..................................................... 2 Section III: District Budget ................................................................................................................... 3 Proposed Fiscal Year Budget ........................................................................................................ 3 Description of Budget Items ......................................................................................................... 4 Section IV: Method of Apportionment ................................................................................................ 5 General .......................................................................................................................................... 5 Special Benefit Analysis ............................................................................................................... 6 Assessment Methodology ............................................................................................................. 6 Assessment Rates .......................................................................................................................... 8 Section V: Assessment Roll ................................................................................................................... 8 Section VI: Assessment Diagram ......................................................................................................... 8 Figure 1.1 ................................................................................................................................................. 9 Table 1.1 ................................................................................................................................................ 10 Item 11
Citrus Heights Lighting District June 24, 2026
FY 2026/2027 Engineer’s Report Page 1
Section I: Overview
Contents of the Engineer’s Report
This Report describes the District boundaries and the proposed improvements to be assessed to the property owners located within the District. The Report is made up of the following sections:

Section I: Introduction and Background – Provides a general introduction into the Report and provides background on the assessment.

Section II: Plans and Specifications – Contains a general description of the improvements that are maintained and serviced by the District.

Section III: Estimate of Costs – Identifies the cost of the maintenance and services to be provided by the District including incidental costs and expenses.

Section IV: Method of Apportionment – Describes the basis in which costs have been apportioned to lots and parcels within the District, in proportion to the special benefit received by each lot and parcel.

Section V: Assessment Roll – The assessment roll identifies the maximum assessment to be levied to each lot or parcel within the District.

Section VI: Assessment Diagram – Displays a diagram of the District showing the boundaries of the District.

For this Report, each lot or parcel to be assessed refers to an individual property assigned its own Assessment Parcel Number by the Sacramento County Assessor’s Office as shown on the last equalized roll of the assessor.

A. Introduction and Background
County Service Area 1 (CSA-1) was established in 1986 by the Sacramento County Board of Supervisors (Board) through the reorganizing of five existing street light maintenance districts. CSA-1 provided street light services to the unincorporated portions of Sacramento County as they existed in 1986. Since that time, the Cities of Citrus Heights, Elk Grove and Rancho Cordova have incorporated; however, responsibility for street light maintenance within these jurisdictions initially remained with CSA-1. On June 14, 2005, the County Board of Supervisors approved the creation of separate zones within CSA-1 corresponding to each incorporated city, with the City of Citrus Heights designated as CSA-1 Zone 3.

The City of Citrus Heights (City) incorporated on January 1, 1997. Between incorporation and the eventual transfer of CSA-1 Zone 3 responsibilities, City staff coordinated with County staff to facilitate street light maintenance by forwarding service requests from City residents to the County.

During this period, CSA-1 revenues remained essentially fixed due to the passage of Proposition 218 in 1996, while operating costs (electricity, labor, materials, etc.) continued to rise. As a result, CSA-1 reduced staffing levels, which in turn increased response times.

Recognizing that assuming local control of street light maintenance and assessments was essential to improving service levels, the Citrus Heights City Council adopted Resolution No. 2005-58 on June 22, 2005, formally notifying the County Board of Supervisors of the City’s intent to detach Zone 3 from CSA-1.

Item 11
Citrus Heights Lighting District June 24, 2026
FY 2026/2027 Engineer’s Report Page 2
Following coordinated efforts with CSA-1 and the Local Agency Formation Commission (LAFCO), the City Council adopted Resolution No. 2006-63 on June 8, 2006, declaring its intent to form the Citrus Heights Lighting District. The process concluded on June 22, 2006, when the City Council adopted Resolution No. 2006-70, establishing the Citrus Heights Lighting District (CHLD or District) pursuant to the Landscape and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code §22500 (1972 Act). Formation of the CHLD in enabled the City to continue levying the direct assessments previously authorized under CSA-1. The City assumed all associated revenues and maintenance responsibilities from Sacramento County at the start of Fiscal Year 2006/2007.

This Engineer’s Report (Report) has been prepared pursuant to the 1972 Act (Part 2 of Division 15 Sections 22500 through 22679 of the Streets and Highways Code) and describes the District and the proposed annual assessments. The assessments are based on historical maintenance costs, current and projected energy rates, and comparable information from neighboring jurisdictions. Assessments will be levied on parcels that receive a special benefit from street light and highway safety lights, and each parcel is assessed proportionately to the special benefit it receives.

Section II: Plans and Specifications
A. General Description of the District
The boundaries of the Citrus Heights Lighting District are coterminous with the incorporated limits of the City of Citrus Heights (see Figure 1.1). Citrus Heights is located in the northernmost section of Sacramento County along Interstate 80 and encompasses approximately 14 square miles.

B. Description of Services and Improvements to be Maintained All lighting improvements and facilities maintained and serviced through District assessments are owned or operated by the City of Citrus Heights or the Sacramento Municipal Utility District (SMUD).

For purposes of this Report, lighting facilities are categorized into two types :

1. Highway Safety Lights - Lights located at intersections, along major roadways, and along the rear of parcels abutting major streets.

2. Street Lights - all other lighting not designated as Highway Safety Lights, generally servicing local residential and collector streets.

Maintenance and operational services are performed by City personnel, contractors, and SMUD.

District assessments provide funding for all Street and Highway Safety Lighting services within the City, including, but not limited to:
• Maintenance, repair and replacement of street light poles and fixtures, including lamp replacement, painting, photoelectric control repair or replacement, and repairs necessitated by vehicle collisions, vandalism, weathering, or normal wear. • Repair and replacement of electrical conduit, pull boxes, and related appurtenances damaged by construction activity, vehicle crashes, or environmental conditions. • Payment of electrical utility costs for the existing street light system. • Response to constituent and business inquiries and service requests related to street lighting.

Item 11
Citrus Heights Lighting District June 24, 2026
FY 2026/2027 Engineer’s Report Page 3
• Implementation of remedial projects involving major repairs or facility upgrades.

Engineering services are provided by City staff or by consultants. • Installation of Highway Safety Lights along major streets and at intersections for traffic-safety purposes. These installations typically occur as part of new signalized intersections funded through the City’s Capital Improvement Program for as conditions of development, with capital costs borne by the City of private developers.
• Creation and maintenance of the street light inventory database, including pole numbering, mapping, and condition tracking to support an effective maintenance and asset-management program.
• Acquisition of land, easements, and rights-of-way necessary for operation and maintenance of the Street and Highway Safety Lighting system.
• Administration of the District.

For purposes of this Report, maintenance refers to the provision of services and materials required for the ordinary and usual operation of the public lighting facilities, including repair, removal, or replacement of improvements or appurtenant components.

Service refers to the labor, materials, equipment, and utilities necessary to maintain and operate all public lighting facilities provided by the City.

Based upon current maintenance records, the combined number of Street Lights and Highway Safety Lights within the Citrus Heights Lighting District is 4,831.

Section III: District Budget
A. Proposed Fiscal Year Budget
Since assuming responsibility for the lighting district from Sacramento County in June 2006, the City has identified all revenue sources and established a comprehensive understanding of District expenditures. During this period, the City has significantly improved the level of service for street light and highway safety light maintenance and operations and refined contract administration procedures to minimize annual maintenance costs.

For the 2026/2027 Fiscal Year, special-assessment revenues are projected to fund the majority of the anticipated District expenditures. However, due to increased electrical power costs and ongoing repairs associated with aging infrastructure, a projected total shortfall of approximately $113,590.72.

Costs for contract unscheduled maintenance work (materials and repairs for damages due to knockdowns and aging infrastructure) are difficult to predict each year. For FY 2026/2027, the estimated costs for unscheduled maintenance work is projected to be $35,000.00. Cost recovery related to insurance settlements on street light knockdowns will be pursued as appropriate.

Over the past year, the City has continued converting existing fixtures and installing new energy efficient Light Emitting Diode (LED) fixtures through roadway improvement projects. As of this report, approximately 3,453 LED fixtures have been installed citywide, representing 71.5% of the District’s total inventory.

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Staff continues to evaluate and implement measures to reduce District expenditures and mitigate rising electricity costs. In 2019, the City conducted a feasibility study assessing opportunities to City-owned equipment and facilities to achieve long-term energy savings. On April 8, 2020, the California Energy Commission (CEC) approved a low interest (1%) Energy Efficiency Loan to support an energyefficiency upgrade project consisting of a substantial number of street light retrofits. In June 2021, a City-retained contractor initiated replacement of existing street lights with LED fixtures, which was completed in October 2021. Following the LED conversions, the City’s SMUD electrical bills decreased by an average of 9.6% during the six-month period from December 2021 to May 2022 compared to the same period the prior year.

Repayment of the CEC loan began in December 2022, and this expenditure is included in Table 1.1 at the end of this report. The biannual loan payment of $11,577.86 is funded through the energy savings realized from reduced utility costs. Upon completion of the 20-year repayment term, District expenditures will decrease by the amount of the annual loan obligation.

In March 2026, the City added a Senior Traffic Signal and Lighting Technician to enhance in-house capability as part of the ongoing effort to reduce costs, improve operational efficiency, and increase response times. With this added staffing, the scope of the existing contract for unscheduled street light maintenance (knockdowns and repairs) will be substantially reduced as this staff position will perform the majority of regular street light maintenance and initial emergency response tasks in-house.

In addition, staff continues to coordinate with SMUD to ensure accurate utility billings, including verification of fixture quantities, fixture types, and wattages for the entire District inventory. As street light fixtures are upgraded, SMUD updates the corresponding billings to reflect the changes revised in monthly utility billings.

No major expansion of the existing system, except when included in grant-funded transportation projects or new development, will be considered until additional revenue sources are identified to support both the initial capital investment and the ongoing operations and maintenance costs associated with system expansion.

The proposed District budget is summarized in the Budget Analysis shown on Table 1.1, which outlines the estimated costs to provide lighting improvements, associated administrative expenses, and the special benefit assessment (Balance to Levy).

B. Description of Budget Items
The following is a brief description of the various components of the District budget including the sources and uses of funds, which are included in Table 1.1.

Sources of Funds – Identifies the revenue sources used by the District to operate, maintain, and service the street light and safety light system. Funding sources may include interest earnings, special assessments, cost recovery revenues, and other supplemental contributions. • Interest on Fund Balance – Interest earnings accrued on the District’s fund balance. • Special Assessments – Revenue generated from assessments levied on parcels within the District that receive benefit from the street lights and highway safety lights.

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• Cost Recovery – Revenue received through insurance reimbursements and other recovery efforts associated with knockdowns or damage to street light and highway safety light infrastructure.
• Other Revenue – Contributions from the City’s General Fund or other supplemental sources used to offset expenditures that exceed annual assessment revenues.

Uses of Funds – Identifies the expenditures required to operate, maintain, and service the District’s lighting infrastructure. Costs may include labor, utilities, equipment, materials, supplies, repairs, replacements, and system upgrades necessary to properly maintain the assets that provide a direct benefit to the District.
• Electrical Costs – Includes the cost of electrical service for all street light facilities. For locations where SMUD retains maintenance responsibility, the associated maintenance charges are also included on the utility bill.
• Professional Services – Includes consultant services to verify assessor parcel information for all properties within the District and to incorporate new parcels into the annual assessment roll. Also includes assessment collection fees charged by the Sacramento County Assessor’s Office for collecting and remitting District assessments to the City, as well as Sacramento County fees for levying each parcel with the approved assessment. • Contract Maintenance (Scheduled) – Includes contracted labor for routine street light maintenance activities and the preparation and ongoing management of the street light inventory. Historically, these scheduled maintenance services were performed entirely by the City’s on-call electrical contractor. However; with the addition of the in-house Senior Traffic Signal and Lighting Technician in March of 2026, the need for contracted scheduled maintenance will be substantially reduced.
• Contract Maintenance (Unscheduled) – Includes contractor labor, equipment, and materials required to address unplanned repairs, including aging infrastructure failures, knock-down repairs and replacements, and other corrective work outside the scope of the scheduled monthly maintenance program.
• Construction – Funds allocated for special projects involving upgrades or modifications to street light and safety light infrastructure and associated facilities.

Section IV: Method of Apportionment
A. General
The 1972 Landscape and Lighting Act authorizes local agencies to form assessment districts for the construction, operation, maintenance, and servicing of public improvements, including street lighting systems, traffic signals, landscaping, parks and drainage facilities.

Pursuant to Streets and Highways Code Section 22573, assessments for maintenance must be levied in proportion to the special benefit received, rather than based on the assessed value of the property. “The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels Item 11
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in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.”
Section 22574 of the 1972 Act authorizes the establishment of zones of benefit within an assessment district if “by reason of variations in the nature, location, and extent of the improvements, the various areas will receive differing degrees of benefit from the improvements.” In addition, Article XIIID of the California Constitution and the Implementation Act require that a parcel’s assessment not exceed the reasonable cost for the proportional special benefit conferred to that parcel. Article XIIID and the Implementation Act further specify that only special benefits are assessable and the City must separate the general benefits from the special benefits. They also require that publicly owned properties which specifically benefit from the improvements be assessed.

A. Special Benefit Analysis
All properties within the District receive a special benefit from the enhanced safety provided by Highway Safety Lights, which illuminate major roadways and intersections. This lighting improves driver visibility of traffic controls (stop signs, yield signs), street name signs, and pedestrians during nighttime conditions, and assists emergency service providers (police, fire, etc.) in locating properties within the District.

In addition to the Highway Safety Light special benefit, individual parcels may receive a parcelspecific special benefit from the presence of a Street Light located on or near the parcel which enhances safety/security in the area. For a parcel to receive this safety/security benefit from street lighting, fifty percent or more of the property’s frontage must be illuminated (based on the road width and spacing of the lights found in the County of Sacramento Improvement Standards). The Street Lighting service charge is apportioned only to those parcels that benefit directly from street lighting.

A distinction is made between residential and non-residential benefit parcels based on zoning. This results in a flat rate service charge on each residential benefit parcel and a service charge per front foot on each non-residential benefit parcel.

The formula used for calculating the District assessment reflects the composition of the parcels, the improvements and the services provided, and fairly proportions the costs based on special benefit to each parcel. Only parcels receiving benefit from Street Lights and Highway Safety Lights are assessed.

General Benefits
There are no general benefits related to Highway Safety Lights or Street Lights.

B. Assessment Methodology
When the original CSA-1 was established the assessment methodology was as follows:

Highway Safety Lighting – All properties are considered to benefit equally from Safety Lighting, as defined above in Special Benefit Analysis. As such, all parcels within CSA-1 were levied a flat rate calculated by the following formula:

Safety Light Maintenance Cost/Total Parcels = Levy per parcel Item 11
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Street Lighting – Only properties that benefit from a street light are levied this assessment. Service charges for parcels that benefit from both safety and street lights are classified as residential parcels or non-residential parcels with separate services charges as follows:

Residential Parcels (Zoned RD1, RD2, RD3, RD4, RD5, RD7): The service charge for a residential parcel was levied utilizing the following formula:

Street Light Maintenance Cost * % of Residential lights / Residential Parcels = Levy per residential parcel
Non-Residential Parcels (all other zoning): The service charge for a residential parcel was levied utilizing the following formula:

Street Light Maintenance Cost * % of Non-Residential lights / Non- Residential Front Footage of Parcels = Levy per linear feet of non-residential front footage Levy per linear feet of non-residential front footage * Non-Residential Parcel Front Footage = Levy per Parcel
The passage of Proposition 218 in 1996 mandated that assessment increases must be approved by a two-thirds vote of the assessed property owners. As a result, the assessment rates for the Sacramento County’s CSA-1 were essentially frozen at the levels in effect at that time. These same rates remained in place and were carried over in 2006 upon creation of the Citrus Heights Lighting District, and have not increased since then. The current assessment methodology is therefore:

Highway Safety Lighting – All properties are considered to benefit equally from Safety Lighting, as defined above in Special Benefit Analysis. The service charge per parcel is equal to $2.56 per year.

Street Lighting – Only properties that benefit from a street light are levied this assessment. Service charges for parcels that benefit from both safety and street lights are classified as residential parcels or non-residential parcels with separate services charges as follows:

Residential Parcels (Zoned RD1, RD2, RD3, RD4, RD5, RD7): The service charge for a residential parcel is equal to $15.32 per year.

Non-Residential Parcels (all other zoning): The service charge for a non-residential parcel is equal to $0.2519 per linear foot length of the parcel’s public street frontage.

Exempt – Exempt from the assessment would be the areas of public streets and other roadways (typically not assigned an APN by the County), dedicated public easements, open space areas and rights of ways including public greenbelts and parkways. Also exempt from assessment would be utility rights of ways, common areas (such as in condominium complexes), landlocked parcels, small parcels vacated by City/County, bifurcated lots, and any other property that cannot be developed.

These types of parcels have little or no value and therefore do not benefit from the improvements.

Land use classification for each parcel is based on the Sacramento County Assessor’s Roll. Zoning classification for each parcel is based on the City of Citrus Heights Zoning Map.

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C. Assessment Rates
The Fiscal Year 2026/2027 assessment rates for the District are proposed to remain the same as Fiscal Year 2025/2026. The following shows the assessments proposed to be levied:

Street Lighting
Residential (Zoned RD1, RD2, RD3, RD4, RD5, RD7) $15.32 per parcel Non-Residential (all other zones) $0.2519 per front foot Highway Safety Lighting
All parcels (except ‘Exempt’) $2.56 per parcel
Section V: Assessment Roll
Parcel identification for all lots or parcels within the District shall be based on the parcel information shown on the Sacramento County Assessor’s maps for the fiscal year in which this Report is prepared.

Non-assessable lots or parcels include all developed non-residential parcels, vacant parcels, government-owned and public utility-owned parcels, land principally encumbered with public rightsof-way and other tax-exempt parcels such as common areas or open space for which the County does not generate a tax bill. These parcels will not be assessed for the District improvements.

A listing of parcels assessed within this District, along with the proposed assessment amounts, is on file with the City Clerk and is incorporated by reference into this Report. Said listing of parcels to be assessed shall be submitted to the County Auditor/Controller and included on the property tax roll for each parcel in FY 2026/2027. If any parcel submitted for collection is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, a corrected parcel number and/or new parcel numbers will be identified and resubmitted to the County Auditor/Controller. The assessment amount to be levied and collected for the resubmitted parcel(s) shall be based on the method of apportionment and the assessment rate approved in this Report. Therefore, if a single parcel has changed to multiple parcels, the assessment amount applied to each of the new parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment.

Section VI: Assessment Diagram
The boundaries of the District are coterminous with the boundaries of the City of Citrus Heights (see Figure 1.1).

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Citrus Heights Lighting District June 24, 2026
FY 2026/2027 Engineer’s Report Page 9
FIGURE 1.1
Lighting District Boundary

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FY 2026/2027 Engineer’s Report Page 10
TABLE 1.1
Citrus Heights Lighting District
Budget Analysis

DESCRIPTION FY 24/25
ACTUAL (6)
FY 25/26
ACTUAL*
FY 26/27

PROPOSED
BUDGET
SOURCES OF FUNDS:

Interest on Fund Balance $0.00 $64.04 $65.00
Special Assessments $339,063.00 $330,941.57 $334,000.00 Shared Maintenance Cost Reimbursement (1) $134.67 $112.82 $115.00 Total Sources of Funds: $339,197.67 $331,118.43 $334,180.00 USES OF FUNDS:

Advertising $759.25 $0.00 $800.00
Utilities (2) $247,981.53 $243,451.26 $244,000.00
CEC Loan Repayment (3) $23,155.72 $23,155.72 $23,155.72 Professional Services $10,223.54 $5,325.18 $5,500.00
Membership Dues $3,867.96 $4,454.78 $4,600.00
Contract Maintenance (Scheduled) (7) $90,511.80 $0.00 $0.00 Contract Maintenance (Unscheduled) (4) $112,198.55 $155,737.00 $35,000.00 Materials & Supplies (5) $0.00 $20,304.47 $45,000.00
New Construction $16,500.00 $0.00 $0.00
Cost Allocations 13,379.00 $13,112.00 $13,115.00
Salary Allocations (Streetlight Maintenance) (5) $0.00 $0.00 $76,600.00 Total Uses of Funds: $518,577.35 $465,540.41 $447,770.72 FUND BALANCE:

Beginning Fund Balance (July 1st) $0.00 $0.00 $0.00
Add Sources of Funds $339,197.67 $331,118.43 $334,180.00 Subtract Uses of Funds $518,577.35 $465,540.41 $447,770.72 Fund Shortfall: $(179,379.68) $(134,421.98) $(113,590.72) OTHER FUNDING SOURCES:

Measure A Maintenance Funds (Fund 210) to
cover District shortfall
$179,379.68 $134,421.98 $113,590.72

Ending Fund Balance (June 30th) $0.00 $0.00 $0.00
* Actual Costs and Revenue for FY25/26 are subject to change and includes fiscal projections for work not yet invoiced. (1) The costs for four streets lights located on Antelope Road, near the I-80 Ramps, are shared with Caltrans (Caltrans reimburses the City for 50% of associated costs).
(2) Includes SMUD maintenance costs – Certain street lights are mounted on SMUD-owned power poles. The District reimburses SMUD for the operation and maintenance of these lights. (3) The City received a low interest (1%) Energy Efficiency Loan from the California Energy Commission (CEC) for capital costs to convert approximately 593 street lights to energy efficient models. Actual energy cost savings will be used to repay the loan. (4) Contract Maintenance (Unscheduled) work includes knock-downs, repairs & materials for aging infrastructure, etc. (5) In 2026, the City hired a Senior Traffic Signal & Lighting Technician. This position is responsible to perform in-house routine street light maintenance. This task now requires salary allocation and material procurement. (6) FY24/25 Actual Costs/Revenue updated since previous year Lighting District Engineer's Report and Staff Report. (7) Starting FY 25/26, the city changed the structure of the contract for street light maintenance. Previously, a set lump sum was paid monthly for "scheduled" repairs. The new contract eliminated the lump sum payment and all repairs are now classified as "unscheduled".

Item 11

CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE: June 24, 2026
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FROM: Regina Cave, General Services Director
Leslie Blomquist, City Engineer
Daniel Kehrer, Principal Civil Engineer
SUBJECT: Review the Sacramento Stormwater Quality Partnership Program and Authorize FY 2026/2027 Expenditures
Recommendation
The Sacramento Stormwater Quality Partnership (SSQP) oversees and manages implementation of regional stormwater related activities including monitoring target pollutant programs, regional public outreach, regional commercial/industrial program, new development, and program management.

In 2012, the City entered into a Memorandum of Understanding (MOU) with the other partnership agencies in the Sacramento Region regarding administrative responsibilities and apportionment of costs regarding the region’s National Pollutant Discharge Elimination System (NPDES) permit specifying that the City of Citrus Heights is responsible for 5.9% of the annual costs associated with this partnership.

Staff recommends the City Council adopt Resolution 2026-_______, a Resolution of the City Council of the City of Citrus Heights, California, authorizing the City Manager or designee to expend stormwater funds for the City of Citrus Heights’ shared cost of joint implemented Municipal Separate Storm Sewer System requirements with the Sacramento Stormwater Quality Partnership.

Strategic Plan Alignment
This item is in alignment with the following City Council priority:

Goal: Maintain Public Infrastructure and Enhance All Modes of Transportation.

Fiscal Impact
The FY 2026/2027Storm Water Utility Fund (Fund 209) budget includes funding in the amount of $81,892.00 for the proposed service agreement.

Item 12
Background and Analysis
The City of Citrus Heights has a Municipal Separate Storm Sewer System (MS4) permit from the Regional Water Quality Control Board (RWQCB) and is one of seven agencies grouped together in Sacramento County. Citrus Heights shares the same requirements in the permit as all partnership agencies, though the requirements can be split into two basic categories - individual and joint compliance activities. The SSQP was established to coordinate the joint compliance activities.

In 2012, the City entered into an MOU with the SSQP regarding administrative responsibilities and cost apportionment. The cost apportionment is based on the relative population of each agency, and for the City of Citrus Heights the apportionment is currently 5.9%.

The compliance activities provided by the SSQP include the following:
• Monitoring and Target Pollutant Program
Stormwater monitoring and regulatory support services, Delta Regional Monitoring Program, and technical expertise on stormwater policy and regulations. • Regional Public Outreach Program
General and community based outreach.
• Regional Commercial/Industrial Program and New Development Design manual and updates to be used for construction documents and post-construction water quality compliance.
• Program Management
Administer and manage the Partnership’s Regional Stormwater Quality Program to ensure continued compliance with the MS4 General Permit.

The total anticipated cost for participation in the partnership for FY 2026/2027 is $81,892.00 (City’s 5.9% share of total costs). A summary of the City’s FY 2026/2027 contributions is included as Exhibit A.

Attachments

1. Resolution No. 2026-____, a Resolution of the City Council of the City of Citrus Heights, California, authorizing the City Manager or designee to expend stormwater funds for the City of Citrus Heights’ shared cost of joint implemented Municipal Separate Storm Sewer System requirements with the Sacramento Stormwater Quality Partnership
a. Exhibit A – SSQP - Summary of Joint Permittee Costs, draft FY 2026/2027 Budget
Item 12
RESOLUTION NO. 2026- ___

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS,

CALIFORNIA, AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXPEND STORMWATER FUNDS FOR THE CITY OF CITRUS HEIGHTS’ SHARED COST OF

JOINT IMPLEMENTED MUNICIPAL SEPARATE STORM SEWER SYSTEM

REQUIREMENTS WITH THE SACRAMENTO STORMWATER QUALITY PARTNERSHIP WHEREAS, the City has a stormwater system within its limits; and WHEREAS, the stormwater system is comprised of man-made features (Municipal Separate Storm Sewer System, MS4) as well as naturally occurring creeks and channels, including waters of the United States (WOTUS); and
WHEREAS, the federal Clean Water Act (CWA) establishes the basic structure for regulating discharges of pollutants into the WOTUS and regulating quality standards for surface waters; and WHEREAS, under the CWA, Environmental Protection Agency (EPA) has implemented pollution control including National Pollutant Discharge Elimination System (NPDES); and WHEREAS, NPDES Program has been delegated to the State of California for implementation through the State Water Resources Control Board (State Water Board) and the nine Regional Water Quality Control Boards (Regional Water Boards), collectively Water Boards; and WHEREAS, the California Regional Water Quality Control Board, Central Valley Region ("CVRWQCB") has been charged by the State Water Board with the responsibility to issue NPDES permits within the Central Valley Region; and
WHEREAS, the City of Citrus Heights is situated within the Central Valley Region; and WHEREAS, the CVRWQCB has developed a single Region-wide MS4 Permit (Order) that promotes greater watershed/drainage shed coordination, water quality measure protections, and program implementation efficiencies; and
WHEREAS, on June 23, 2016 the Regional Water Board issued an NPDES MS4 permit, NPDES No. CAS085324, Order No. R5-2016-0040, (Permit) for the County of Sacramento and the cities of Citrus Heights, Elk Grove, Folsom, Galt, Rancho Cordova and Sacramento (collectively the "Permittees" and individually the "Permittee"); and
WHEREAS, the Permit requires the Permittees to monitor stormwater discharges and implement multiple programs to reduce the level of pollutants discharged into receiving waters; and WHEREAS, the Permittees have previously entered into an MOU to establish administrative responsibilities and apportionment of costs related to shared activities associated with Permit implementation; and
WHEREAS, the MOU includes the responsibility for the timely payment of all monetary obligations by each Permittee for joint activities; and Item 12
WHEREAS, the attached Sacramento Stormwater Quality Partnership Summary of Joint Permittee Costs Draft FY 2026/2027 Budget has been submitted as an estimate of costs related to joint implemented MS4 requirements.

NOW THEREFORE BE IT RESOLVED AND ORDERED that the City Council of the City of Citrus Heights does hereby authorize the City Manager, or a designee, to expend stormwater funds for the City of Citrus Heights’ shared cost of joint implemented Municipal Separate Storm Sewer System requirements with the Sacramento Stormwater Quality Partnership.

The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 24th day of June 2026 by the following vote, to wit:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:

MariJane Lopez-Taff, Mayor
ATTEST:

Amy Van, City Clerk
Exhibit
A. Sacramento Stormwater Quality Partnership Summary of Joint Permittee Costs Draft FY 2026/2027 Budget
Item 12
Sacramento Stormwater Quality Partnership
Summary of Joint Permittee Costs
FY 2026/2027 BUDGET
Updated: Jan 15, 2026
County Citrus Hts Elk Grove Folsom Galt Rancho Sac
Program Element/Activity Lead Agency Consultant 38.4% 5.9% 10.9% 5.2% 1.7% 4.6% 33.3% Monitoring Program/Special Studies/TMDL
Monitoring & Regulatory Support Services City-Bryan LWA $ 875,000.00 336,000 $ $ 51,625 $ 95,375 $ 45,500 $ 14,875 $ 40,250 $ 291,375 Delta Regional Monitoring Program (RMP) County-Matt DRMP non-profit $ 103,000.00 $ 39,552 $ 6,077 $ 11,227 $ 5,356 $ 1,751 $ 4,738 $ 34,299 Permit Reissance Legal Support City/County TBD $ - $ - $ - -$ $ - $ - $ - $ 978,000.00
Target Pollutant Reduction
Pesticides: CASQA Pesticide Reduction Project
County-Matt CASQA 40,000.00 $ 15,360 $ 2,360 $ 4,360 $ 2,080 $ 680 $ 1,840 $ 13,320 $ $ 40,000.00
Public Outreach
General Outreach:Survey $ 15,360 40,000.00 $ 2,360 $ $ 4,360 $ 2,080 $ 680 $ 1,840 $ 13,320 Brochure printing/development City Splash $ - $ - $ - -$ $ - $ - $ - Outreach supplies City Screaming Squeegee et al. $ - $ - $ - -$ $ - $ - $ - Stormwater Outreach/Media Placement City SGA Yes, 20% for IPM only
$ 120,000.00 46,080 $ $ 7,080 $ 13,080 $ 6,240 $ 2,040 $ 5,520 $ 39,960 Subtotal: General Public Outreach $ 160,000.00
IPM:

Professional Landscaping Outreach County-Jeanette ReScape $ - - $ - $ - $ -$ $ - $ - $ - IPM consultant (OWOW) City Julie Barbour Yes, 20% 50,000.00 $ $ 19,200 $ 2,950 $ 5,450 $ 2,600 $ 850 $ 2,300 $ 16,650 CASQA OWOW Subscription Cost + Fact Sheet
County $ 15,000.00 $ 5,760 $ 885 $ 1,635 $ 780 $ 255 $ 690 $ 4,995 Subtotal: IPM $ 65,000.00
School Education:

Splash in the Class - Classroom Presentations
City 60,000.00 $ 23,040 $ 3,540 $ 6,540 $ 3,120 $ 1,020 $ 2,760 $ 19,980 $ Subtotal: School $ 60,000.00
$ 285,000.00
Construction
Pre-Rainy Season Training Rancho Cordova/Elk Grove $ - $ - $ - -$ $ - $ - $ - $ -
Program Management
CASQA Joint Membership County $ 65,000.00 $ 24,960 $ 3,835 $ 7,085 $ 3,380 $ 1,105 $ 2,990 $ 21,645 Program contingency including outreach County/City $ 20,000.00 $ 7,680 $ 1,180 $ 2,180 $ 1,040 $ 340 $ 920 $ 6,660 Legal Support $ -
$ 85,000.00
TOTAL = $ 532,992 1,388,000.00 $ $ 81,892 $ 151,292 $ 72,176 $ 23,596 $ 63,848 $ 462,204 1 Cost share based on 2012 Permittee MOU cost share allocations.2 SacSewer provides 20% of funding for all public outreach contracts for costs related to integrated pest mangement outreach through an MOU with the City of Sacramento.

Cost-Share
with
SacSewer2 FY27 Budget
FY27 Permittee Budget1
Program Management Subtotal =
Monitoring and TMDL Subtotal =
Target Pollutant Subtotal =
Public Outreach Subtotal =
Construction Subtotal =

Page 1 ends

Item 12

CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE: June 24, 2026
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FROM: Susan Talwar, Administrative Services Director
SUBJECT: Approval of Master Services Agreement with Hinderliter de Llamas and Associates (HdL) for Sales and Use Tax Analytics and Related Revenue Services
Recommendation
Staff recommends the City Council adopt Resolution No. 2026-___ A Resolution of the City Council of the City of Citrus Heights, California, authorizing the City Manager to execute the agreement between the City of Citrus Heights and Hinderliter de Llamas and Associates (HdL) for Sales and Use tax Services.

Strategic Plan Alignment
This item is in alignment with the following City Council priority:

Goal: Maintain and Enhance Fiscal Stability While Supporting Operational Excellence Fiscal Impact
The agreement results in a net increase of $4,200; however, savings realized from recent banking services will fully offset this amount. Therefore, no budget adjustment is required at this time.

Background and Analysis
HdL has been a longstanding consultant to the City of Citrus Heights, providing specialized revenue consulting, sales and use tax analysis, economic forecasting, and audit recovery services for well over a decade. Their services have supported City staff, budget planning efforts, quarterly financial reporting, and economic development initiatives.

On a quarterly basis, HdL provides detailed reports and meets with staff from Finance, Economic Development, and the City Manager’s Office to review sales tax trends, discuss statewide economic factors, and update financial forecasts. These meetings regularly include detailed Item 13
reporting packets consisting of Consensus Forecast Reports, Final Reports, Geo Reports, and industry specific evaluations. This structure has provided the City valuable insights during annual budget development, midcycle updates, long-range forecasting, and economic development project planning.

HdL has consistently demonstrated responsiveness and professionalism in supporting the City’s needs, including providing special analyses, corrected reports, training, and technical support.

Staff rely heavily on the firm’s subject matter expertise in California sales and use tax law, California Department of Tax and Fee Administration (CDTFA) reporting practices, and economic trend analysis. HdL’s work has proven especially valuable during periods of economic fluctuation, retail sector shifts, and other factors affecting City revenues.

HdL’s services offer significant value to the City by delivering accurate and timely forecasting, which is essential for both annual and midcycle budget development. The firm’s expertise enables the identification of previously unreported or misallocated revenues, resulting in meaningful revenue recovery. HdL provides strategic insight into retail performance and economic trends that supports economic development efforts. Their direct staff support and training help free up internal resources, maximizing efficiency within City departments. HdL also ensures compliance with CDTFA confidentiality laws through their specialized systems and knowledge, while consistently providing high-quality technical support and responsive service to City staff. Collectively, these benefits allow the City to stay competitive and well informed in a changing retail and economic environment, with reliable sales tax forecasting playing a crucial role in maintaining essential City services.

The proposed Master Services Agreement preserves the structure of services historically relied upon by the City while updating the terms, fee schedules, and clarifying responsibilities related to access to confidential CDTFA data under Revenue & Taxation Code Section 7056.

Attachments

1. Resolution No 2026- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS, CALIFORNIA, authorizing the City Manager to execute the agreement between the City of Citrus Heights and Hinderliter de Llamas and Associates (HdL) for Sales and Use tax Services.

2. Master Services Agreement
Item 13
RESOLUTION NO. 2026-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS HEIGHTS,

CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT

BETWEEN THE CITY OF CITRUS HEIGHTS AND HINDERLITER DE LLAMAS AND

ASSOCIATES (HDL) FOR SALES AND USE TAX SERVICES

WHEREAS, the City of Citrus Heights has relied on Hinderliter de Llamas and Associates (HdL) for over a decade to provide specialized revenue consulting, sales and use tax analysis, economic forecasting, and audit recovery services; and
WHEREAS, the proposed Master Services Agreement maintains the long-established service structure provided by HdL while updating terms, fee schedules, and responsibilities related to access to confidential CDTFA data under Revenue & Taxation Code Section 7056; and WHEREAS, the updated agreement results in a net cost increase of $4,200; however, savings from recently updated banking services fully offset this amount, requiring no budget adjustment; and WHEREAS, the proposed agreement aligns with the City Council’s Strategic Goal to Maintain and Enhance Fiscal Stability While Supporting Operational Excellence.

NOW THEREFORE BE IT RESOLVED AND ORDERED that the City Council of the City of Citrus Heights does hereby authorizes the City Manager to execute the Master Services Agreement between the City of Citrus Heights and Hinderliter de Llamas and Associates (HdL) for Sales and Use Tax Analytics and related revenue services.

The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 24 day of June 2026 by the following vote, to wit:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:

MariJane Lopez-Taff, Mayor
ATTEST:

Amy Van, City Clerk
Item 13

MASTER SERVICES AGREEMENT
THIS MASTER SERVICES AGREEMENT (this “Agreement”) is entered into as of _____________, 2026 (the “Agreement Date”) by and between Hinderliter de Llamas and Associates (“Consultant”), and City of Citrus Heights (“Client”), which is located within the state of California (the “State”).

W I T N E S S E T H:

WHEREAS, Consultant is engaged in the business of providing consulting, software and other services that help public agencies understand and maximize their collection of sales, use and transactions taxes, business license taxes, property and lodging taxes, and other revenues, as well as their delivery of public services (collectively, “Consultant’s Business”); and WHEREAS, Client desires to contract with Consultant to obtain one or more of the services included within Consultant’s Business (as provided for in Section 1) upon the terms and conditions contained in this Agreement;
WHEREAS, Consultant desires to contract with Client to render such services upon the terms and conditions contained in this Agreement.

NOW THEREFORE, in consideration of the covenants and promises contained herein, Client and Consultant mutually agree as follows:

1. Services.

1.1 Consultant will perform those services included within Consultant’s Business that are described in any and all schedule(s) referencing this Agreement and signed by Client and Consultant as of the Agreement Date or hereafter (individually and collectively, the “Schedule(s)”), upon the terms and conditions contained in this Agreement (including the Schedules) (such services are, collectively, the “Services”). In performing the Services, Consultant is acting as an independent contractor (and not as an agent or employee of Client).

1.2 Client acknowledges and agrees that any other public agency (including, without limitation, any participating government agency) located within or outside of the State (e.g., city, municipality, county, district, public authority or other political subdivision) may procure services for fees and other terms and conditions that are substantially similar to any of the Services, Fees and other terms and conditions set forth in this Agreement, provided that such other public agency executes a separate agreement with Consultant wherein the services rendered to such other public agency, the fees payable by such other public agency, and the other terms and conditions of such separate agreement are the responsibility of Consultant and such other public agency and not Client.

1.3 This Agreement does not limit the right of Consultant to enter into additional contracts with Client or to contract with third parties to provide them with merchandise or services of any kind whatsoever, including, but not limited to, services similar to the Services. During the Term of this Agreement, Client will not, directly or indirectly (except through Consultant), engage any third party to provide the Services or any services similar to the Services.

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2. Fees. As compensation for performing the Services, Client will pay Consultant the fees, costs and expenses as described in the Schedules (individually and collectively these fees and costs are, the “Fees”). Consultant may perform the Services using professionals from its staff or Consultant’s affiliated entities, and such Services will be invoiced to Client under the same terms applicable to Consultant’s staff. Consultant may increase the Fees from time to time (including, without limitation, as may be described in any of the Schedules). Other than a Fee increase as described in the Schedules, Client may notify Consultant of a request that such Fee increase be modified or revoked and, if Consultant fails to do so to Client’s satisfaction within thirty (30) days after the receipt of such request, Client may terminate this Agreement without cause pursuant to Section 7.3.

3. Invoices; Payment.

3.1 Consultant will invoice Client for the Fees earned and/or incurred by Consultant pursuant to this Agreement.

3.2 Invoices are due and payable upon receipt. Interest will begin to accrue on the thirty-first (31st) day following the invoice date on all unpaid balances at a rate of one and onehalf percent (1½%) per month, or the maximum rate permitted by law, whichever isless. Payments will first be credited to interest and then to principal. In the event that Client disputes an invoice, only that portion so disputed in good faith will be withheld from payment, and the undisputed portion must be timely paid. Interest will accrue on any disputed portion of the invoice not timely paid and will be payable immediately if the disputed invoice is resolved in favor of Consultant.

3.3 If Client fails to fully pay an invoice within 30 days after the invoice date, Consultant may, after giving five (5) days’ prior written notice to Client, suspend the rendering of Services under this Agreement until said invoice is paid in full, together with all interest that has accrued thereon. In the event of such a suspension of Services, Consultant will have no liability to Client for any delays or damages arising therefrom.

4. Insurance. Throughout the term of this Agreement, Consultant will maintain the following insurance in not less than the referenced amounts: (a) workers compensation and employers liability insurance as may be required by the State; (b) property damage liability of $1,000,000 per incident; (c) bodily injury liability of $1,000,000 per incident; and (d) professional liability for any errors or omissions of $1,000,000.

5. Client Support.

5.1 Client will promptly provide in writing to Consultant all data and other information relating to or which may be necessary for Consultant’s performance of the Services.

Without limiting the foregoing, Client will keep Consultant informed on a timely basis in writing as to the existence and amendments of the laws, ordinances and/or regulations under which Consultant is performing the Services (including any adopted by Client). Consultant will be permitted to rely on the accuracy, timeliness and completeness of the information provided by Client, and in no event will Consultant be liable to Client or others as a result of such reliance.

5.2 Client will examine all of Consultant’s reports, specifications, notices, proposals and other documents. In the event that Consultant asks for a decision from Client in Item 13
order for Consultant to perform the Services, Client will render such decision in writing in a timely manner.

5.3 Promptly following any request from Consultant, Client will adopt and maintain in full force and effect resolutions in forms acceptable to Client and in accordance with applicable law authorizing Consultant to examine the confidential sales tax and other relevant records of Client throughout the Term and, for so long as any Fees are still accruing pursuant to this Agreement, after the Term.

5.4 Client will assist Consultant in obtaining such licenses, permits and approvals as may be required by law for performing the Services, and Client will pay all fees, assessments and taxes related to the application, issuance and maintenance thereof.

5.5 The Services do not include services to support, prepare, document, bring, respond to subpoenas, act as a witness, defend or otherwise assist in litigation undertaken or defended by Client, which Consultant may be required by legal process or otherwise or requested by Client to provide (collectively, “Litigation Services”). In this regard, if Consultant agrees with Client or is otherwise required to perform Litigation Services, Client will promptly pay or reimburse Consultant for all of Consultant’s costs and expenses related to Litigation Services (including, without limitation, Consultant’s attorneys’ fees and costs) at Consultant’s actual cost, plus ten percent (10%) thereof (all of which are deemed to be additional Fees).

6. Confidentiality; Software Use and Warranty; Records.

6.1 Consultant will comply with the requirements of the applicable laws, ordinances and/or regulations of which it has been informed by Client pursuant to Section 5.1 concerning the confidentiality of tax records. Consultant may publicly state that it performs Services for Client.

6.2 As used herein, the term “proprietary information” means all information, techniques, processes, services or material that has or could have commercial value or other utility for Consultant or in Consultant’s Business, including without limitation, (i) software, computer or data processing programs; (ii) data processing applications, routines, subroutines, techniques or systems; (iii) desktop or web-based software; (iv) audit, tax or fee collection/administration or business processes, methods or routines; (v) marketing plans, analyses and strategies; (vi) materials, techniques and intellectual property used; and (vii) the Software and the Software’s documentation. Except as otherwise required by law, Client must hold in confidence and may not use (except as expressly authorized by this Agreement) or disclose to any other party any proprietary information provided, learned of or obtained by Client in connection with this Agreement. The terms of this Section 6.2 do not apply to information that is public information; provided, however, that proprietary information will not qualify as public information if it became public due to Client’s (or its employees’ or agents’) disclosure.

6.3 If access to any software which Consultant owns is provided to Client as part of the Services under this Agreement (including, without limitation, if Client chooses to subscribe to such software and/or related reports as part of the Services pursuant to a Schedule to this Agreement) (such Consultant-owned software is, collectively, the “Software”), Consultant hereby Item 13
provides a limited, non-exclusive, non-transferable license to Client (including such of Client’s staff as may be designated from time to time by Client and approved by Consultant in writing) to use the Software pursuant to and during the Term of this Agreement.

6.4 The Software must only be used by such authorized Client staff, and Client must not sublicense, sublet, duplicate, modify, decompile, reverse engineer, disassemble, or attempt to derive the source code of the Software. The license granted hereunder does not imply ownership by Client or any of Client’s staff of the Software nor any rights of Client or any of Client’s staff to sublicense, transfer or sell the Software, or rights to use the Software for the benefit of others. Client may not create (or allow the creation of) any derivative work or product based on or derived from the Software or the Software’s documentation, nor modify (or allow the modification of) the Software or the Software’s documentation without the prior written consent of Consultant. In the event of a breach of this provision (and without limiting Consultant’s remedies), such modification, derivative work or product based on the Software or the Software’s documentation is hereby deemed assigned to Consultant. Upon termination of this Agreement or this Software license, this Software license will be deemed to have expired and Client must immediately deactivate, cease using and remove, delete and destroy all the Software (including, without limitation, from Client’s computers and network). Consultant warrants that the Software will perform in accordance with the Software’s documentation.

6.5 Notwithstanding anything to the contrary in this Agreement (including any Schedule hereto), if access to any software which Consultant does not own is provided to Client as part of the Services pursuant to this Agreement (including pursuant to any Schedule hereto), Client hereby agrees (i) to comply with all of the terms and conditions imposed on Client’s access to such software (including, without limitation, by Consultant, such software’s owner, and pursuant to applicable law), and (ii) Consultant has no obligation during the Term of this Agreement or thereafter to provide Client with access to such software.

6.6 All documents, preliminary drafts, communications and any and all other work product related to the Services and provided by Consultant to Client either in hard copy or electronically are the joint property of Client and Consultant. This does not include the Software or any other software, any programs, any methodologies or any systems used in the creation of such work product, nor does it include any drafts, notes or internal communications prepared by Consultant in the course of performing the Services that were not otherwise provided to Client in either hardcopy or electronic form, all of which may be protected by Consultant or third party copyrights or other intellectual property and remain Consultant’s or such third parties’ exclusive property (as the case may be). It is possible that any documents, drafts, communications or other work product provided to Client may be alleged to be public records under applicable law and/or may be discoverable through litigation. Well in advance of when Client may disclose such information in response to any request for public records, Client must notify Consultant in writing about the request and, if Consultant requests it, Client must apply for any potential exemption from disclosure that may exist under applicable law.

6.7 Subject to applicable law, Consultant is responsible for retaining all final documents and other final work product related to the Services for a period of not less than three (3) years from the date provided to Client. Retention of any other documents, preliminary drafts, communications and any and all other work product provided to Client by Consultant is the Item 13
responsibility of Client. Consultant has no responsibility to retain any drafts, notes, communications, emails or other writings created or received by Client in the course of performing the Services (other than the final documents and other final work product related to the Services and provided to Client for the term of years referenced above).

7. Term and Termination.

7.1 The initial term of this Agreement commences as of the Agreement Date and, unless terminated earlier pursuant to any of this Agreement's express provisions, will continue in effect for five (5) years from such date (the “Initial Term”). This Agreement may be renewed for two twelve (12) month terms unless earlier terminated as set forth in Section 7.2 or 7.3 (each a “Renewal Term” and, collectively, together with the Initial Term, the “Term”).

7.2 This Agreement may be terminated by either party for cause upon not less than forty-five (45) days’ prior written notice given to and received by the other party, if the other party has materially breached this Agreement through no fault of the notifying party and fails to (i) commence correction of such material breach within thirty (30) days of receipt of the abovereferenced written notice and (ii) diligently complete the correction thereafter.

7.3 In addition, either party may terminate this Agreement without cause upon not less than one hundred twenty (120) days’ prior written notice to the other party.

7.4 On termination, Client will pay Consultant for all Fees and other compensation (including for Litigation Services) earned and/or incurred through the termination date and will thereafter timely pay Consultant for all other Fees and compensation to which Consultant may be entitled pursuant to this Agreement (including the Schedules hereto).

8. Indemnification.

8.1 Consultant, on behalf of itself and its directors, officers, employees, agents, direct and indirect equity holders, and affiliates (collectively, “Consultant Group”), agrees to fully and promptly protect, indemnify, reimburse and hold harmless Client, its directors, officers, employees, agents, direct and indirect equity holders, and affiliates (collectively, “Client Group”), from and against any and all liabilities, losses, claims, damages, personal injuries, death, expenses, and costs (including, without limitation, for attorneys’ fees and costs) (each, a “Liability”, and collectively, “Liabilities”) which are the direct or indirect result of (a) any breach of any representation, warranty or covenant made by or given on behalf of Consultant under this Agreement, or (b) any gross negligence or willful misconduct on the part of any one or more of Consultant Group.

8.2 Client, on behalf of itself and the other members of Client Group, agrees to fully and promptly protect, indemnify, reimburse and hold harmless Consultant and the other members of Consultant Group from and against any and all Liabilities which are the direct or indirect result of (a) any breach of any representation, warranty or covenant made by or given on behalf of Client under this Agreement, or (b) any action or failure to act on the part of any one or more of Consultant Group where such action or failure to act was in good faith believed by any of Consultant Group at the time to be in conformity with this Agreement, or (c) otherwise related to or arising out of any act or omission by any one or more Client Group. In this regard, Client hereby acknowledges that it is Item 13
responsible for instructing Consultant regarding Consultant’s performance of Services under this Agreement, as well as the interpretation and meaning of the ordinances and/or regulations under which Consultant is performing Services under this Agreement.

8.3 Promptly after any member of Client Group or any member of Consultant Group (in each case, the “Indemnified Group”) receives notice of the commencement of any proceeding for which Client or Consultant (as the case may be) intends to make a claim for indemnification under this Agreement, it should notify the other party (the “Indemnifying Party”), but the failure to so notify will not result in the loss of any rights of any of the Indemnified Group to indemnification hereunder except to the extent that the Indemnifying Party does not otherwise become aware of such proceeding and is actually adversely affected thereby to a material extent. The Indemnifying Party will assume the defense of the Indemnified Group (including the employment of legal counsel reasonably satisfactory to the Indemnified Group) and payment of such counsel’s fees and disbursements (including retainers). Should the Indemnified Group reasonably determine that separate counsel is necessary (whether due to the existence of different defenses, potential conflicts of interest or otherwise), or if the Indemnifying Party has not assumed the defense, then any of the Indemnified Group may employ separate legal counsel, and the Indemnifying Party will pay such counsel’s reasonable fees and disbursements as incurred (including retainers). The obligations of defense and indemnification under this Agreement apply, without limitation, to those situations where someone brings a cross claim for indemnity or contribution against any one or more of the Indemnified Group.

8.4 Neither Consultant nor Client shall, without the other party’s prior written consent, settle, compromise or consent to the entry of any judgment in any pending or threatened claim, action, or proceeding or investigation in respect of which indemnification could be sought hereunder (whether or not any of the other party or any other member of the Indemnified Group is an actual or potential party to such claim, action or proceeding or investigation), unless such settlement, compromise or consent includes an unconditional release of the other party and any other member of the Indemnified Group from all liability arising out of such claim, action, proceeding or investigation and includes an explicit disclaimer of responsibility of any kind on the part of the other party and any other member of the Indemnified Group.

9. Liability Limitations; Governing Law; Dispute Resolution.

9.1 To the maximum extent permitted by law and notwithstanding anything to the contrary in this Agreement:

9.1.1 Except for Consultant’s gross negligence or willful misconduct in connection with the performance of its obligations under this Agreement, Client’s sole and exclusive remedies for any breaches of Consultant’s obligations under this Agreement (including, without limitation, for any breaches relating to the Services or the Software, including any breaches of warranty, express or implied) (i) are limited to making reasonable and necessary repairs, replacements or corrections without additional cost to the Client, and (ii) will not exceed, under any circumstances, the amount of the Fees paid by Client to Consultant for the twelve-month period prior to the alleged breaches, calculated without reference to any payments constituting the payment of costs or expenses. All amounts paid to Consultant hereunder are deemed first to be for the reimbursement of costs or expenses and then any excess will be regarded as payments for other Item 13
portions of the Fees under this Agreement. Any references to breaches of this Agreement will include any supplements, additions or amendments to this Agreement.

9.1.2 Except as may otherwise be expressly set forth in this Agreement, Consultant makes no warranty of any kind with respect to the Services or the Software, express or implied. Consultant hereby disclaims all other warranties, express or implied, including the implied warranties of merchantability, fitness for a particular purpose, title and non infringement.

Consultant disclaims all warranties and responsibility for third party software.

9.1.3 In no event will any of Consultant Group be liable for any lost revenues or lost profits, or any special, incidental, or consequential damages of any nature whatsoever, even if such restrictions deprive one or more remedies of their essential purpose. This damage exclusion is independent of any remedies provided for herein.

9.1.4 None of Consultant Group will have any Liability (whether direct or indirect, in contract or tort or otherwise) related to, arising out of, or in connection with this Agreement or to any of Client Group acting on any advice given or opinion rendered by any of Consultant Group, except to the extent that such Liability is found by a court of competent jurisdiction in a judgment which has become final and that it is no longer subject to appeal or review to have resulted solely from such Consultant Group’s willful misconduct or gross negligence.

9.1.5 No claim may be brought by Client against any one or more of Consultant Group arising out of this Agreement (including, without limitation, in connection with the Services or the Software) more than one year after the date on which such claim arose (regardless of the date when Client may have discovered a basis for the claim).

9.1.6 Client acknowledges that this Agreement is with Consultant in its capacity as a corporation or a limited liability company, and Client agrees that in no event will it seek to hold any of the Consultant Group (other than Consultant) responsible for any Liabilities.

9.2 The law of the State will govern the validity of this Agreement, its interpretation and performance, and any other claims related to it, without regard to the State’s conflict of laws rules. Venue for any legal action arising out of this Agreement will be proper only in the State courts or the federal courts located within the State. The parties hereby submit to the exclusive jurisdiction of such courts and waive any other venue to which either party might be entitled by domicile or otherwise.

9.3 If either party is required to bring legal action to enforce its rights under this Agreement or as the result of a breach of this Agreement, the costs and expenses of the prevailing party, including reasonable attorneys’ fees, will be paid by the non-prevailing party.

9.4 A breach of this Agreement by either party may cause the other party hereto irreparable harm, the amount of which may be difficult to ascertain, and therefore such other party will have the right to apply to a court of competent jurisdiction for specific performance and/or an order restraining and enjoining any further breach and for such other relief as such other party may deem appropriate. Such right is in addition to the remedies otherwise available to such other party at law or in equity. The parties hereto expressly waive the defense that a remedy in damages will Item 13
be adequate and any requirement in an action for specific performance or injunction hereunder for the posting of a bond.

10. General Legal Provisions.

10.1 Authorization to Proceed. Each Schedule must be signed by both Client and Consultant before such Schedule will be binding on the parties hereto.

10.2 Force Majeure. Consultant is not responsible for damages or delay in performance caused by acts of God, strikes, lockouts, accidents, epidemics, pandemics or other health emergencies, or other events beyond the control of Consultant.

10.3 Amendment; Waiver. Any provisions of this Agreement (including, without limitation, any Schedules or provisions within any Schedules) may be amended or terminated if in writing and signed by both Client and Consultant. No waiver by any party of any default, misrepresentation or breach of warranty or covenant hereunder, whether intentional or not, will be deemed to be valid unless acknowledged by such party in writing, and such waiver will not extend to any prior or subsequent default, misrepresentation or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence.

10.4 Severability and Survival. If any provision in this Agreement is held illegal, invalid or unenforceable, the enforceability of the remaining provisions will not be impaired thereby. Notwithstanding any other provisions of this Agreement (including, without
limitation, Section 7), Sections 3, 5.5, 6, 7, 8, 9 and 10 will survive the termination of this Agreement.

10.5 No Third-Party Beneficiaries; Services Limited to Agreement. Except as set forth in Section 8, this Agreement gives no rights or benefits to anyone other than Client and Consultant and has no third-party beneficiaries. The Services to be performed for Client by Consultant are defined solely by this Agreement (including the Schedules), and not by any other contract or agreement that may be associated with performing the Services.

10.6 Assignment. This is a bilateral personal services agreement. Neither party will have the power to or will assign any of the duties or rights or any claim arising out of or related to this Agreement, whether arising in tort, contract or otherwise, without the written consent of the other party. Any unauthorized assignment is void and unenforceable. This Agreement is binding on the Item 13
successors and assigns of the parties hereto. Notwithstanding anything to the contrary, Consultant may, from time to time, utilize one or more third parties to provide certain of the Services (including, but not limited to, as may be set forth in one or more of the Schedules).

10.7 Notices. All notices under this Agreement must be in writing and will be deemed to have been given when such notice is received (i) from United States Postal Service First Class Certified Mail, Return Receipt Requested, (ii) by courier service, or (iii) by email; provided, however, that notices received on a weekend or holiday or on a business day after 4:00 p.m. local time will be deemed to have been received on the next business day. Notices will, unless another address is specified in writing, be sent to the addresses indicated below (each of which must include a street address and an email address): Consultant: 120 S. State College Blvd.#200, Brea, CA 92821, Attn: Contracts, Email: [email protected]; and Client: 6360 Fountain Square Dr. Citrus Heights, CA 95621, Attn: Administrative Services Director, Email:
[email protected]

10.8 Entire Agreement; Conflict. This Agreement (which includes any Schedules or amendments dated as of the Agreement Date or hereafter, including without limitation, amendments of the main body of this Agreement or the Schedules that may add to, subtract from, modify or clarify the Term, the scope of Services and/or the amount of Fees) constitutes the entire agreement between the parties and supersedes any prior understandings, agreements, or representations by or between the parties, written or oral, to the extent they relate in any way to the subject matter hereof. Should there ever be a conflict between the terms and conditions of any Schedules and the remainder of this Agreement as set forth in the main body of this Agreement, the terms and conditions of the remainder of this Agreement as set forth in the main body of this Agreement will prevail and be controlling; provided, however, that should there ever be a conflict between the terms and conditions of this Agreement (including any Schedules) and (i) any amendments hereof, the terms and conditions of the amendments hereof will prevail and be controlling, and (ii) the terms and conditions of any Schedule that expressly provides for them to supersede any terms and conditions of the main body of this Agreement, such terms and conditions of such Schedule will prevail and be controlling.

10.9 Counterparts; Electronic Signatures; Authority. This Agreement may be signed in any number of counterparts, each of which will constitute an original and all of which, when taken together, will constitute one agreement. Any signed signature pages of this Agreement transmitted by email or other electronic means in a portable document format (PDF) or other clear and visible electronic format will have the same legal effect as an original. Each of the persons signing on behalf of a party hereto represents that he or she has the authority to sign this Agreement on such party’s behalf.

10.10 No Adverse Construction. Both parties acknowledge having had the opportunity to participate in the drafting of this Agreement. This Agreement will not be construed against either party based upon authorship. The section headings contained in this Agreement are inserted for convenience only and will not affect in any way the meaning or interpretation of this Agreement.

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[Signatures are on the next page]
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IN WITNESS WHEREOF, the parties hereto have entered into this Agreement through their duly authorized representatives as of the Agreement Date.

CONSULTANT:

Hinderliter de Llamas and Associates
By:

Andrew Nickerson, President/CEO
CLIENT:

City of Citrus Heights
By:
[Any Schedule or Schedules may (but is/are not required to) be attached hereto] Item 13

SCHEDULE A
PREMIUM SERVICES – Sales and Use Tax

1. Sales and Use Tax and Economic Analysis/Reports

1.1. Establish a special database with California Department of Tax and Fee Administration (“CDTFA”) registration data for businesses within applicable district boundaries holding seller’s permit accounts.

1.2. Consultant shall make available to CITY the HdL proprietary software program and database containing all applicable registration and quarterly allocation information for CITY business outlets registered with the Department of Tax and Fee Administration. The database will be updated quarterly.

1.3. Consultant shall provide updated reports each quarter identifying changes in allocation totals by individual businesses, business groups and by categories. Quarterly aberrations due to State audits, fund transfers, and receivables, along with late or double payments, will also be identified.

1.4. Following each calendar quarter shall provide a summary analysis for City to share with Council Members, Chamber of Commerce, other economic development interest groups and the public that analyze City’s sales tax trends by major groups without disclosing confidential individual tax records.

1.5. Provide periodic updated reports endeavoring to identify and assist with budget forecasting including (i) changes in allocation totals by individual businesses, business groups and categories, and (ii) aberrations due to State audits, fund transfers, and receivables, along with late or double payments.

1.6. Consultant shall provide a presentation led by an HdL Sales Tax Principal discussing latest sales tax results, emerging retail trends, business retention needs, leveraging of economic clusters and reviewing successes in client jurisdictions with similar characteristics. This presentation will occur following each calendar quarter.

2. Allocation and Audit Recovery Services

2.1. Conduct (when mutually agreed with City) initial and on-going sales and use tax audits of businesses to help identify and correct allocation errors, and to proactively affect favorable registration, reporting or formula changes thereby generating previously unrealized sales and use tax income for the City and/or recovering misallocated tax from registered taxpayers. Common errors that will be monitored and corrected include but are not limited to: transposition errors resulting in misallocations; erroneous consolidation of multiple outlets; misreporting of “point of sale” to the wrong location; delays in reporting new outlets; misallocating use tax payments to the allocation pools or wrong jurisdiction; and erroneous fund transfers and adjustments.

2.2. Initiate contacts with sales, management and accounting officials in companies that have businesses where a probability of error exists to endeavor to help verify whether current tax receipts accurately reflect the local sales activity. Such contacts will be conducted in a professional and courteous manner.

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2.3. Prepare and submit to the CDTFA information for the purpose of correcting any identified allocation errors, and follow-up with individual businesses and the CDTFA to promote recovery by the City of back or prospective quarterly payments that may be owing.

2.4. If, during the course of its audit, Consultant finds businesses located in the City’s jurisdiction that are properly reporting sales and use tax but have the potential for modifying their operation to provide an even greater share to City, Consultant may so advise City and collaborate with those businesses and City to encourage such changes.

3. Consulting and Other Optional Services
Consultant may from time to time in its sole discretion, consult with City’s staff, including without limitation, regarding (i) technical questions and other issues related to sales, use and transactions tax, (ii) utilization of reports to enhance business license collection efforts, (iii) sales tax projections for proposed annexations, economic development projects and budget planning, (iv) negotiating/review of tax sharing agreements, (v) establishing purchasing corporations, (vi) meeting with taxpayers to encourage self-assessment of tax obligations, and (vii) other sales, use or transactions tax revenuerelated matters.

FEES – Sales and Use Tax Services

4. Sales and Use Tax and Economic Analysis/ Reports

4.1. Fees for performing the sales tax and economic analysis Services as described above shall initially be $900 per month, commencing with the month of the Effective Date (hereafter referred to as “monthly fee”). The monthly fee shall be invoiced quarterly in arrears, and shall be paid by City no later than 30 days after the invoice date.

4.2. Consultant will increase the non-hourly Fees established above once a year with reference to the 12-month percent change in the most recently published annual Consumer Price Index for All Urban Consumers (CPI-U), as reported by the U.S. Bureau of Labor Statistics (the “CPI Change”).

5. Allocation and Audit Recovery Services

5.1. Fees for performing the allocation and audit recovery Services described above shall be 18% of all new, increased and recovered sales and use tax revenue received by the City as a result, in whole or in part, of the allocation audit and recovery services (hereafter referred to as “audit fee”).

The fee shall be paid notwithstanding any related City assistance, work in parallel, and/or incurrence of attorneys’ fees or other costs or expenses in connection, with the relevant Services.

5.2. The Fee described above include, without limitation, State fund transfers received for back quarter reallocations and monies received in the second eight (8) consecutive reporting quarters following completion of Consultant’s allocation audit and confirmation of the corrections by the CDTFA.

5.3. These Fees shall be paid by City upon Consultant’s submittal of evidence of Consultant’s relevant Services in support thereof, including, without limitation, copies of relevant communications between Consultant and the CDTFA and/or taxpayers.

ADDITIONAL TERMS – Sales, Use and Transactions Tax Services

6. Consulting and Other Optional Services

6.1. Fees for performing other optional services are described below:

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6.1.1. Fees for performing City Staff training, public representation, or technical seminars for elected officials shall be $3,000 for one-time service and $2,000 for recurring service

6.1.2. Fees for performing transactional tax ballot measure estimates shall be $2,600 per report.

6.1.3. On-site travel to the city shall be $2,600 plus any associated travel expenses per visit

6.1.4. Incremental non-core packet reporting shall be $2,600 for a one-time report and $700 for recurring reporting service

6.2. Any other consulting and optional Services not listed shall be based on the following initial hourly rates: (i) Principal - $325; (ii) Programmer - $295; (iii) Senior Analyst - $245; and (iv) Analyst - $195

7. General Provisions Relating to Fees

7.1. Fees for travel and lodging expenses will be invoiced at cost and applied to all meetings (including implementation, training, operations and support). Travel expenses only apply to out of scope travel and must therefore be pre-approved by City.

7.2. Fees will be invoiced monthly to City for Services performed during the prior month. To the extent that Consultant has commercially reasonable means to do so, Fees will be netted out of City’s monthly revenue disbursement.

8. Confidentiality Information
Section 7056 of the State of California Revenue and Taxation Code (“R&T Code”) specifically limits the disclosure of confidential taxpayer information contained in the records of the CDTFA. Section 7056 specifies the conditions under which a city, county or district may authorize persons other than such city, county or district’s officers and employees to examine state sales and use tax records.

The following conditions specified in Section 7056-(b)(1) of the State of California R&T Code are hereby made part of this Agreement:

8.1. Consultant is authorized by this Agreement to examine sales, use or transactions and use tax records of the CDTFA provided to City pursuant to contract under the Bradley-Burns Uniform Local Sales and Use Tax Law R&T Code Section 7200 et.seq.

8.2. Consultant is required to disclose information contained in, or derived from, those sales or transactions and use tax records only to an officer or employee of City who is authorized by City resolution provided to the CDTFA to examine the information.

8.3. Consultant is prohibited from performing consulting services for a retailer (as defined in R&T Code Section 6015), during the term of this agreement.

8.4. Consultant is prohibited from retaining the information contained in or derived from those sales, use or transactions and use tax records after this agreement has expired.

Information obtained by examination of the CDTFA records shall be used only for purposes related to collection of local sales and use tax or for other governmental functions of the City as set forth by resolution adopted pursuant to Section 7056 (b) of the Revenue and Taxation Code. The resolution shall designate the Consultant as a person authorized to examine sales and use tax records and certify that this agreement meets the requirements set forth above and in Section 7056 (b), (1) of the Revenue and Taxation Code.

Item 13

CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE: June 24, 2026
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FROM: Susan Talwar, Administrative Services Director
Melissa Rojas, Human Resources Manager
SUBJECT: Compliance with Assembly Bill 2561/Government Code Section 3502.3 regarding Vacancies, Recruitment and Retention Efforts
Recommendation
Effective January 1, 2025, AB 2561 requires public agencies, including the City, to hold at least one (1) public hearing per fiscal year to discuss vacancies, recruitment and retention efforts. This staff report, along with the public hearing presentation, satisfies the City's legal obligations under the law. This presentation is for informational purposes only regarding the status of the City’s vacancies, recruitment and retention efforts.

Staff recommend that the City Council receive the presentation for information purposes only during the public hearing at which time staff will report on workforce vacancies, recruitment, and retention efforts. The City's recognized employee organizations will be provided with an opportunity to make a presentation.

Strategic Plan Alignment
This item is in alignment with the following City Council priority:

Goal: Maintain and Enhance Fiscal Stability while Supporting Operational Excellence Fiscal Impact
There is no fiscal impact associated with this public hearing presentation.

Background and Analysis
AB 2561 was introduced to address the issue of job vacancies in local government, which adversely affects the delivery of public services and employee workload. Among other Item 14
requirements, the bill mandates that public agencies present the status of vacancies, recruitment, and retention efforts during a public hearing before the agency’s governing body at least once per fiscal year prior to the adoption of the next fiscal year’s budget and identify any necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process. The bill was enacted into law and is codified as Government Code section 3502.3, effective January 1, 2025.

In compliance with the new legal obligations, the City is required to do the following:

1. Public Hearing – Report on Vacancies: Report the City’s annual average percentage of vacancies (i.e., regular, full-time equivalent) for the previous year. For calendar year 2025, the average vacancy rate is 10.47%. Table 1 and Table 2 illustrate a breakdown of the percentage of vacancies (regular full-time equivalent) each month:

Table 1: Citywide Position Vacancy Data by Month (1/1/2025 – 6/30/2025) Jan Feb Mar Apr May Jun
Starting Employee Count 187 185 185 190 192 193
Separations 3 1 1 2 1
New Hires 1 1 6 2 3 2
Ending Employee Count 185 185 190 192 193 194
Authorized Positions (FTE) 210.75 210.75 210.75 210.75 210.75 210.75 Vacancies 25.75 25.75 20.75 18.75 17.75 16.75
Vacancy Rate 12.22% 12.22% 9.85% 8.90% 8.42% 7.95%
Table 2: Citywide Position Vacancy Data by Month (7/1/2025 – 12/31/2025) Jul Aug Sep Oct Nov Dec
Starting Employee Count 194 194 193 193 191 191
Separations 1 1 2 2 1 5
New Hires 1 2 1
Ending Employee Count 194 193 193 191 191 186 ‘
Authorized Positions (FTE) 215 215 215 215 215 215
Vacancies 21 22 22 24 24 29
Vacancy Rate 9.77% 10.23% 10.23% 11.16% 11.16% 13.49%

2. Employee Organization Participation: Allow the recognized employee organization for each bargaining unit at the City to make presentations during the public hearing concerning vacancies and recruitment and retention efforts. The Human Resources Department notified the two (2) represented bargaining units at the City of the opportunity to present. (Gov. Code § 3502.3(b).)

3. Additional Reporting for High Vacancy Rates: If vacancies within a single bargaining unit meet or exceed 20% of authorized full-time positions in that bargaining unit, upon request of the recognized employee organization for that bargaining unit, the City must provide additional information during the public hearing, including the following: (1) the Item 14
total number of vacancies within the bargaining unit; (2) the number of applicants; (3) the average number of days to fill positions; and (4) opportunities to improve compensation and working conditions for employees in the bargaining unit. (Gov. Code § 3502.3(c).) For the calendar year 2025, within the City’s bargaining units with recognized employee organizations, all were under the 20% vacancy rate, which is summarized below:

Bargaining Unit Average Annual Vacancy Rate
Police Officers’ Association 14.61%
Police Employees’ Association 5.75%
Citywide 10.47%
Item 14

CITY OF CITRUS HEIGHTS

CITY COUNCIL STAFF REPORT

MEMORANDUM
DATE: June 24, 2026
TO: Mayor and City Council Members
Ashley J. Feeney, City Manager
FROM: Susan Talwar, Administrative Services Director
Dena Jenkins, Finance Manager
SUBJECT: Fiscal Years 25/26 and 26/27 Mid-Cycle Budget Review, Financial Forecast Update and Appropriations Limit for Fiscal Year 26/27
Recommendation
Staff recommends that the City Council:
1) Review updated revenue and expenditure projections for the General Fund and other City funds for Fiscal Year 25/26 and Fiscal Year 26/27; and
2) Review the updated Ten-Year Financial Forecast; and
3) Adopt Resolution No. 2026-__ Resolution of the City Council of the City of Citrus Heights, California, Approving Amendments to the Fiscal Year 26/27 Budget; and 4) Adopt Resolution No. 2024-__ Resolution of the City Council of the City of Citrus Heights, California, Establishing an Appropriation Limit for Fiscal Year 26/27.

Fiscal Impact
Updated projections for Fiscal Year 26/27 reflect General Fund revenues of $47.1 million available to fund expenditures of $46.1 million with a projected year-end increase to General Fund reserves totaling $1 million.

The proposed budget amendments for Fiscal Year 26/27 will increase General Fund revenue appropriations by $172,000 and will increase General Fund expenditure appropriations by $347,000.

Background and Analysis
CITY MANAGER’S MID-CYCLE BUDGET MESSAGE
The City of Citrus Heights is committed to fiscal prudence, recognizing that a budget is more than a financial document; it is a reflection of community priorities and values. The City's biennial budget and mid-cycle review process help ensure resources remain aligned with the services, infrastructure investments, and initiatives that matter most to residents while allowing Item 15
the organization to respond to changing conditions and emerging needs. The mid-cycle review provides an opportunity to assess financial performance, evaluate evolving circumstances, and make adjustments as needed to ensure resources remain aligned with community priorities and organizational goals.

Like many local governments, Citrus Heights faces rising costs and increasing demands on public resources. At the same time, many revenue sources remain constrained, stagnant, or vulnerable to economic fluctuations. Economic conditions can change quickly, making ongoing monitoring and regular reassessment essential components of responsible financial management.

These realities require thoughtful prioritization and a commitment to directing limited resources toward the investments that deliver the greatest value to the community.

Citrus Heights is better positioned than many local agencies to navigate these challenges because of deliberate decisions. By maintaining healthy reserves, avoiding temporary solutions to ongoing costs, and taking a measured approach to growth and investment, the City has built a strong financial foundation that provides flexibility when conditions change. Prioritization nevertheless remains essential. Resources are finite, and every investment must be evaluated based on the value it delivers to residents and the community as a whole.

Fiscal stewardship is not simply about balancing a budget. It is about ensuring public resources are invested where they can produce the greatest value. The City regularly reviews expenditures, revenue performance, and emerging trends to ensure decisions are informed by current conditions rather than assumptions. Rather than relying on automatic year-over-year increases, the City evaluates actual performance and adjusts forecasts and spending plans as conditions evolve. While forecasts provide an important planning framework, the City recognizes that economic conditions can change and remains committed to monitoring performance and adjusting course when necessary. This approach allows the organization to adapt as circumstances change, remain responsive to community needs, and focus resources where they can have the greatest impact.

By working with regional partners and contracted service providers, Citrus Heights is able to expand its capacity, access specialized expertise, and pursue opportunities that would be difficult to achieve independently. Fiscal stewardship is also supported by a culture of continuous improvement, where departments regularly evaluate processes, identify efficiencies, and seek opportunities to improve service delivery. The City also aggressively pursues grant funding and other external resources to accelerate community investments, reduce reliance on local funding sources, and maximize the return on taxpayer dollars.

Fiscal stewardship is not an end in itself. Its purpose is to ensure the City can continue investing in the priorities that matter most to the community. The Fiscal Year 2026-2027 Budget advances the City Council's Strategic Plan and serves as the primary implementation tool for achieving the City's long-term goals: maintaining and enhancing fiscal stability while supporting operational excellence; maintaining public infrastructure and enhancing all modes of transportation; diversifying for a vibrant economy; preserving and enhancing public safety; and enhancing community vibrancy and engagement. Budget decisions are informed by community priorities, strategic planning, financial forecasting, and ongoing assessment of community needs to ensure resources remain focused on investments that provide the greatest return on investment and best advance the community's long-term priorities.

Item 15
To support these goals, the City applies a consistent approach to fiscal stewardship throughout budget development, implementation, and ongoing evaluation. This approach helps guide resource allocation decisions and ensures public resources are managed responsibly, transparently, and with a focus on long-term value.

How Citrus Heights Approaches Fiscal Stewardship
• Align resources with community priorities and City Council strategic goals. • Maintain structurally balanced and sustainable budgets. • Preserve reserves and organizational resilience.
• Invest in infrastructure and community assets.
• Aggressively pursue grants and external funding opportunities. • Maximize resources through partnerships, innovation, and operational efficiencies. • Promote transparency, accountability, and measurable results.

Responsible stewardship of public resources is fundamental to maintaining public trust and ensuring the City remains well-positioned to meet both current and future community needs.

Ultimately, fiscal stewardship is about creating the conditions for a safe, well-maintained, economically vibrant, and connected community.

The challenges facing local government will continue to evolve, but the City's commitment to responsible stewardship remains unchanged. Through thoughtful planning, ongoing evaluation, and disciplined investment, Citrus Heights will continue to make decisions that meet today's needs while keeping the community's long-term future firmly in view.

FISCAL YEAR 25/26 BUDGET YEAR END PROJECTION REVIEW
The City’s budget for Fiscal Years 25/26 and 26/27 was adopted by the City Council on June 11, 2025. The City Council received a mid-year budget update on March 11, 2026, and adopted a resolution amending the Fiscal Year 25/26 General Fund budget to incorporate updated revenue and expenditure projections. The FY25/26 revenue and expenditure projections are presented for informational purposes only and no budget adjustment is requested for this fiscal year.

The Fiscal Year 25/26 adopted budget for all City funds, as amended to date, anticipates revenue of $99.7 million and expenditures of $98.26 million with the difference of $1.5 million budgeted from the accumulated fund balances. As of May 31, 2026, $71.5 million (72 percent) of the total budgeted revenue had been received and $72.9 million (74 percent) of the budgeted expenditures had been incurred. It should be noted that although the City’s fiscal year ends on June 30th, revenues and expenditures for the current fiscal year will continue to be recorded during a sixtyday accrual period – through the end of August.

The City’s main operating fund is the General Fund. The General Fund budget for Fiscal Year 25/26 identifies revenue of $47.3 million to fund expenditures of $43 million. As of April 30, 2026, General Fund revenues totaled $42.5 million (89 percent of the budgeted amount) and General Fund expenditures totaled $33.7 million (77 percent of the annual budgeted amount).

GENERAL FUND REVENUE
Item 15
The Fiscal Year 25/26 General Fund budget includes anticipated revenue of $47.8 million. Based upon actual revenue received, it is projected that General Fund revenue will total $536,400 more than the budgeted amount by the end of the fiscal year.

Taxes and Franchises
The largest source of revenue for the General Fund is sales tax. Citrus Heights’ sales tax revenues continue to face pressure as local receipts for the October–December period fell 4.7% from the prior year, or 1.6% after excluding reporting anomalies, reflecting broader economic headwinds including higher-than-expected inflation, tariff-driven pricing pressures, and rising household cost burdens. Sales tax was amended on March 11, 2026, due to lower than anticipated projections to total $13.9 million.

Property tax revenue was budgeted at $8 million. The City’s property tax consultant had lowered its projection for property tax revenue mainly as a result of slowing home sales from high mortgage interest rates.

Licenses and Permits
Revenue from licenses and permits was budgeted at $1.5 million. Updated projections indicate that revenues in this category will exceed the budget amount by $500,000. This is due to continued strong building activity.

Intergovernmental Revenue
The second largest source of General Fund revenue is motor vehicle-in-lieu fees which is paid by Sacramento County in two installments: 50 percent in January and the remaining 50 percent in May of each year. The City has been notified that the Fiscal Year 2025-26 vehicle-in-lieu fee revenue is projected to total $11.97 million which is $19,000 more than the budgeted amount.

Other reimbursement revenues are cost recovery on mandated programs totaling $333,000.

A summary of General Fund revenues as of May 31, 2026, is provided on the following page.

Item 15

GENERAL FUND EXPENDITURES
FY 2024-25
Actual
FY 2025-26
Amended
FY 2025-26
Projection
Projected
Over/(Under)
Budget

TAXES AND FRANCHISES
Property Tax 7,876,660 8,047,022 8,047,022
Sales and Use Tax 13,778,642 13,901,594 13,938,000 36,406 Utility Users Tax 3,077,576 2,650,000 2,650,000
Franchise Fees 490,042 617,500 617,500
Franchise Fees Solid Waste 896,369 650,000 650,000
Property Transfer Tax 263,107 245,000 245,000
Transient Occupancy Tax 90,445 110,000 110,000
Total Taxes and Franchises 26,472,839 26,221,116 26,257,522 36,406

LICENSES AND PERMITS
Business License 352,807 300,000 300,000
Building Plan Check 358,591 230,129 230,129
Engineering Fees Private Dev 194,337 20,000 20,000
Zone Check 17,849 13,000 13,000
Building Permits 1,785,527 1,000,000 1,500,000 500,000
Engineering Fees Utilities 347,752 175,000 175,000
Tree Permit 1,667 1,500 1,500
Transportation Permits 12,628 12,000 12,000
Records Processing/Strong Motion 4,394 8,315 8,315
Other Licenses and Permits 53,204 56,720 56,720
Total Licenses and Permits 3,128,756 1,816,664 2,316,664 500,000

FINES AND FORFEITURES
Non-Sufficient Funds Penalty 248 300 300
Vehicle Fines 131,778 152,000 152,000
Red Light Camera Fines 1,068,370 960,000 960,000
Total Fines and Forfeitures 1,200,396 1,112,300 1,112,300

INTERGOVERNMENTAL
State Mandated Reimbursements 482 165,000 165,000
Federal Grants/ Reimbursements - 193,000 193,000
Motor Vehicle-in-Lieu Fee 11,676,534 11,973,783 11,973,783 Total Intergovernmental 11,677,016 12,331,783 12,331,783

USE OF MONEY
Investment Revenue 2,111,186 1,900,000 1,900,000
Total Use of Money 2,111,186 1,900,000 1,900,000

CHARGES FOR SERVICES
Lease Payments 337,238 337,238 337,238
Administrative Fees 36,304 23,760 23,760
Police - Reimbursement Contract Overtime 145,826 150,000 150,000 False Alarm/Alarm Permit Fees 97,946 35,000 35,000
Vehicle Release / Towing 79,655 80,000 80,000
Event Center Rentals 513,629 500,000 500,000
Planning Fees 46,488 45,000 45,000
Animal Control Fees and Charges 12,895 55,000 55,000
Total Charges for Services 1,269,981 1,225,998 1,225,998

CONTRIBUTIONS
Donations / Sponsorships 27,420 25,000 25,000
Developer Contributions - - -
Total Contributions 27,420 25,000 25,000
OTHER
Miscellaneous Revenue 474,677 65,000 65,000
Reimbursement Revenue 219,120 654,500 654,500
Internal Service Fund Charges/Cost Allocations 1,666,448 1,633,240 1,633,240 Recovery of Labor & Benefits - 260,000 260,000
Restitution/Public Property Damage Recovery 126,618 70,000 70,000 Police Department Sales 1,550 5,000 5,000
Line of Credit Draw -
Unknown Revenue to tie to ACFR -
Transfers In -
Total Other 2,488,413 2,687,740 2,687,740
Total General Fund Revenue $ 48,376,007 $ 47,320,601 47,857,007 $ 536,406

CITY OF CITRUS HEIGHTS
FY 2026-27 General Fund Revenue
24-Jun-26
Item 15
The Fiscal Year 25/26 budget includes General Fund expenditure appropriations of $45.1 million, with $33.7 million (77 percent) expended as of April 30, 2026. Preliminary projections indicate that General Fund expenditures will total $44.05 million by the end of the fiscal year, which represents savings of $1.09 million.

Salary & Benefits
Overall expenditure is currently trending below budget. The adopted budget incorporated a vacancy factor of $1.5 million to offset projected salary and benefit savings. Based on year-todate activity, staff anticipate vacancy savings may exceed the budgeted factor largely attributable to personnel vacancies in the Administrative Services, Police, and General Services Departments.

Other Operating Expenditures
Overall operating expenditures have remained low across departments due to staff’s continued commitment to fiscal prudence, careful cost management, and consistent evaluation of operational needs. Departments have effectively contained spending, resulting in projected savings in multiple areas of the General Fund. Where increases have been necessary, the mid-year amended budget request on March 11, 2026 covered the rising software licensing, maintenance, and technology-driven cost adjustments, particularly within Information Technology and other service-supporting divisions.

Projected General Fund expenditure information for each City department is provided in the table below.

Item 15

CITY OF CITRUS HEIGHTS
Fiscal Year 2025-26 & 2026-27 General Fund Expenditures By Department - Mid Cycle 24-Jun-26
Department FY 2024-25
Actual
FY 2025-26
Amended
YTD
(04/30/2026)
Year-End
Projection
Projected
Over/(Under)
Budget
City Council 185,688 323,509 178,912 305,250 (18,259)
City Manager 427,720 581,120 397,090 513,640 (67,479)
City Attorney 341,965 424,000 293,592 424,000 -
City Clerk 261,135 362,884 322,550 349,196 (13,688)
Elections 54,725 - - - -
City Manager's Office 1,271,233 1,691,513 1,192,144 1,592,086 (99,427) - Economic Development 1,039,437 475,357 421,659 459,952 (15,406) Community Engagement - 700,082 400,746 564,054 (136,029) Economic Development & Community
Engagement 1,039,437 1,175,440 822,405 1,024,005 (151,434) Human Resources 754,452 897,240 410,488 502,305 (394,935) Information Services 1,615,837 2,215,902 1,719,728 2,215,000 (902) Risk Management 2,561,063 2,940,792 2,079,568 2,681,001 (259,791) Finance 920,574 1,009,007 865,316 1,046,276 37,269
Non Departmental 4,260,759 3,470,739 2,643,989 3,263,958 (206,781) Administrative Services 10,112,685 10,533,680 7,719,089 9,708,539 (825,141) Law Enforcement 23,027,408 25,138,753 18,760,163 24,470,294 (668,459) Animal Control 801,145 1,119,725 608,489 749,639 (370,086) Police 23,828,554 26,258,478 19,368,652 25,219,933 (1,038,544) Community Events 330,002 420,091 242,249 294,720 (125,371) Event Center Operations 760,773 629,662 605,771 709,098 79,437 Sylvan Community Center 24,491 23,500 18,774 21,507 (1,993) Sayonara Community Center 14,827 24,000 17,923 23,775 (225) Engineering 1,325,853 959,004 903,893 950,000 (9,004)
Facility Management 893,238 911,842 717,540 854,574 (57,268) Fleet Management 1,103,005 1,023,881 653,936 763,308 (260,573) General Services 4,452,189 3,991,979 3,160,086 3,616,982 (374,997) Housing 169,955 273,903 123,993 166,387 (107,515)
Planning 588,478 581,771 467,425 570,187 (11,584)
Building Inspection 1,051,980 1,084,045 877,610 1,083,045 (1,000) Planning Commission 21,855 12,400 2,986 3,094 (9,306)
Community Development 1,832,269 1,952,119 1,472,014 1,822,713 (129,406) - - Vacancy Factor (1,527,255) - - 1,527,255
Use of/Transfers to Non-General Fund Reser 1,390,369 1,068,000 1,068,000 - General Fund Expenditures $ 43,926,736 $ 45,143,953 $ 33,734,390 $ 44,052,258 $ (1,091,694) Item 15
The amended Fiscal Year 25/26 General Fund budget provided for an operating surplus of $2.2 million. Based upon actual revenues and expenditures during the first eleven months of the fiscal year and updated projections for the remainder of the year, staff are now forecasting a budget surplus of $3.8 million.

Unless other direction is specifically provided by the City Council, any operating surplus/(shortfall) at the end of a fiscal year is added/(deducted from) that fund’s available fund balance. For Fiscal Year 25/26, the projected operating surplus of $3.8 million (less planned capital expenditures) will increase the General Fund reserves from $35.3 million to a projected ending balance of $36.5 million. A healthy reserve fund provides opportunities to minimize service disruptions during periods of economic uncertainty, to fund one time expenditures that are consistent with City Council and community priorities and be opportunistic on pursuing grants that require a match to achieve a strategic infrastructure objective.

FISCAL YEAR 26/27 BUDGET MID-CYCLE ADJUSTMENT REQUEST

GENERAL FUND REVENUE
The Fiscal Year 26/27 budget includes anticipated revenue of $46.9 million. This projection was based upon information available at the time the budget was prepared in early 2025. Based upon information currently available, staff are recommending adjustments to the Fiscal Year 26/27 General Fund revenue budget which will increase budgeted revenue by $172,000. The proposed adjustments to General Fund budgeted revenue include:

Taxes and Franchises
The Fiscal Year 26/27 budget projected sales tax revenue of $14.3 million. Based upon the projected sales tax revenue reported from the City’s tax consultant, it is projected that sales tax revenue will total $14 million in Fiscal Year 26/27, a decrease of $307,000 to the budgeted amount. The City has been notified that property tax revenue will total $8.4 million which is $170,000 under the amount originally budgeted. Revenue from the transient occupancy tax are projected to total $100,000.

Intergovernmental
The second largest source of General Fund revenue (behind sales tax) is motor vehicle-in-lieu fees. Motor vehicle-in-lieu fee revenue estimates are provided by the State and updated periodically. Total revenue from the City’s intergovernmental was budgeted at $12.39 million.

Updated projections reflect revenue in this category will total $12.36 million, which is a decrease of $34,000 in the amount currently budgeted.

Use of Money
The increase in interest rates has had a positive impact on investment revenue during FY25/26.

Based upon actual revenue received during FY25/26, the projections for FY26/27 indicate similar revenues which will increase investment revenue by $700,000 to $1.9 million.

A summary of General Fund revenues for Fiscal Year 26/27 is provided on the following page.

Item 15
FY 2026-27
Adopted
FY 2026-27
Projected
Projected
Over/(Under)
Budget

TAXES AND FRANCHISES
Property Tax 8,476,031 8,306,025 (170,006)
Sales and Use Tax 14,381,592 14,074,132 (307,460)
Utility Users Tax 2,650,000 2,650,000 -
Franchise Fees 586,625 586,625 -
Franchise Fees Solid Waste 650,000 650,000 -
Property Transfer Tax 245,000 245,000 -
Transient Occupancy Tax 115,500 100,000 (15,500)
Total Taxes and Franchises 27,104,748 26,611,782 (492,966)

LICENSES AND PERMITS
Business License 300,000 300,000 -
Building Plan Check 211,470 211,470 -
Engineering Fees Private Dev 18,000 18,000 -
Zone Check 7,600 7,600 -
Building Permits 983,247 983,247 -
Engineering Fees Utilities 180,000 180,000 -
Tree Permit 1,500 1,500 -
Transportation Permits 12,000 12,000 -
Records Processing/Strong Motion 8,315 8,315 -
Other Licenses and Permits 58,465 58,465 -
Total Licenses and Permits 1,780,597 1,780,597 -

FINES AND FORFEITURES
Non-Sufficient Funds Penalty 100 100 -
Vehicle Fines 152,000 152,000 -
Red Light Camera Fines 960,000 960,000 -
Total Fines and Forfeitures 1,112,100 1,112,100 -

INTERGOVERNMENTAL
State Mandated Reimbursements 25,000 25,000 -
Federal Grants/ Reimbursements - - -
Motor Vehicle-in-Lieu Fee 12,395,883 12,361,840 (34,043) Total Intergovernmental 12,420,883 12,386,840 (34,043)

USE OF MONEY
Investment Revenue 1,200,000 1,900,000 700,000
Total Use of Money 1,200,000 1,900,000 700,000

CHARGES FOR SERVICES
Lease Payments 337,238 337,238 -
Administrative Fees 23,760 23,760 -
Police - Reimbursement Contract Overtime 150,000 150,000 - False Alarm/Alarm Permit Fees 35,000 35,000 -
Vehicle Release / Towing 80,000 80,000 -
Event Center Rentals 535,000 535,000 -
Planning Fees 45,000 45,000 -
Animal Control Fees and Charges 55,000 55,000 -
Total Charges for Services 1,260,998 1,260,998 -

CONTRIBUTIONS
Donations / Sponsorships 25,000 25,000 -
Developer Contributions - - -
Total Contributions 25,000 25,000 -
OTHER
Miscellaneous Revenue 18,000 18,000 -
Reimbursement Revenue 35,000 35,000 -
Internal Service Fund Charges/Cost Allocations 1,674,071 1,674,071 - Recovery of Labor & Benefits 260,000 260,000 -
Restitution/Public Property Damage Recovery 26,000 26,000 - Police Department Sales 5,000 5,000 -
Line of Credit Draw - - -
Unknown Revenue to tie to ACFR - - -
Transfers In - - -
Total Other 2,018,071 2,018,071 -
Total General Fund Revenue 46,922,397 47,095,388 172,991

CITY OF CITRUS HEIGHTS
FY 2026-27 General Fund Revenue
24-Jun-26
Item 15

GENERAL FUND EXPENDITURES
The Fiscal Year 26/27 budget includes General Fund expenditure appropriations of $45.7 million. Based upon a review of each departmental budget, several adjustments are proposed to align the budget with current projected cost estimates. The net impact of these adjustments would be to increase the General Fund budget by $347,000. These increases reflect market-wide pricing shifts rather than expanded operational activity.

The Fiscal Year 2026-2027 General Fund Expenditures table that follows the explanations in this section includes a column titled “Projected over/(under) budget”. The Adjustment column represents a combination of operating expenses along with salary and benefit adjustments. An explanation of the proposed budget adjustments are provided as follows:

Operating Expenditures (Non-Salary & Benefits) - $347,000 The proposed budget adjustments listed below, by department, reflect operating expenditures (Non-Salary & Benefits) requests:

Administrative Services Department
Information Technology - $184,681 is requested to fund increased software licensing costs. The City is required to pay annual licensing fees for the various software utilized for daily business and citizen support activities. The annual license costs have increased with additional increases anticipated next fiscal year.

Non-Departmental - $100,000 will be re-budgeted from FY25/26 for consulting services on the Sunrise Tomorrow Project and other potential consulting needs.

Police Department
Police – $27,700 a one-time increase is recommended for the current fiscal year to address the uptick in Police Recruits.

Economic Development & Community Engagement Department
Economic Development - $35,000 increase to cover the cost of the grant assistance consultant and a re-budget of unused funds from FY25/26 for banners.

A summary of General Fund budgeted expenditures by department/division is provided on the following page.

Item 15

CITY OF CITRUS HEIGHTS
Fiscal Year 2026-27 General Fund Expenditures By Department - Mid Cycle 24-Jun-26
Department FY 2026-27
Budgted
FY 2026-27
Projected
Projected
Over/(Under)
Budget
City Council 325,529 325,529 -
City Manager 585,790 585,790 -
City Attorney 340,000 340,000 -
City Clerk 272,885 272,885 -
Elections 76,200 76,200 -
City Manager's Office 1,600,404 1,600,404 - -
Economic Development 482,065 517,065 35,000
Community Engagement 689,519 689,519 -
Economic Development & Community
Engagement 1,171,583 1,206,583 35,000
Human Resources 920,012 920,012 -
Information Services 2,164,721 2,349,402 184,681
Risk Management 3,177,725 3,177,725 -
Finance 1,038,690 1,038,690 -
Non Departmental 3,402,000 3,502,000 100,000
Administrative Services 10,703,148 10,987,829 284,681
Law Enforcement 25,718,857 25,746,357 27,500
Animal Control 1,146,953 1,146,953 -
Police 26,865,810 26,893,310 27,500
Community Events 435,690 435,690 -
Event Center Operations 646,350 646,350 -
Sylvan Community Center 23,500 23,500 -
Sayonara Community Center 16,850 16,850 -
Engineering 849,555 849,555 -
Facility Management 853,301 853,301 -
Fleet Management 1,035,327 1,035,327 -
General Services 3,860,574 3,860,574 -
Housing 284,112 284,112 -
Planning 598,874 598,874 -
Building Inspection 1,111,897 1,111,897 -
Planning Commission 12,400 12,400 -
Community Development 2,007,284 2,007,284 -
Vacancy Factor (1,573,819) (1,573,819) -
Use of/Transfers to Non-General Fund Reser 1,110,000 1,110,000 - General Fund Expenditures $ 45,744,984 $ 46,092,165 $ 347,181 Item 15
The Fiscal Year 26/27 adopted General Fund budget provided for an operating surplus of $1.1 million. Based upon revenue and expenditure adjustments requested, staff are now forecasting a budget surplus of $1 million.

AMERICAN RESCUE PLAN ACT FUND
The City of Citrus Heights was allocated $15,676,972 in American Rescue Plan Act (ARPA) funding. The City received the first ARPA payment of $7,838,486 from the U.S. Treasury in May 2021. The final ARPA payment of $7,838,486 was received on June 6, 2022. To date, the City Council has appropriated $15.6 million of ARPA funding of which $15.2 million has been expended.

GENERAL FUND LONG RANGE FINANCIAL FORECAST
As a strategic fiscal planning tool, the City maintains a long-term financial forecast. Because this forecast is based upon data currently available, it is updated periodically to reflect new information regarding anticipated future revenues and expenditures. While the financial forecast covers a ten-year period for the City’s General Fund, Government Finance Officers Association (GFOA) standard and best practice is to cover a five-year period as inflationary and revenue assumptions are typically less predictable beyond five years. The City Council last reviewed the Ten-Year Financial Forecast on March 11, 2026. The Financial Forecast has been updated and includes the following changes:
• Fiscal Year 25/26 – year-end projections added.
• Fiscal Year 26/27 – Mid-Cycle Budget projections updated.

Total Award $ 15,676,972
Completed Projects Actual
Small Business COVID Recovery Grant $ 281,111
Block Party Trailer - Economic Development+ $ 27,794
Patriotic Event+ $ 68,438
Proposed Grant Strategy+ $ 60,000
Police Fleet Vehicles & Equipment $ 1,800,000
Community Projects Grant Program**+ $ 72,400
Cares Commuinity Pride and Cleanliness Campaign+ $ 38,607 Sound Wall Beautification+ $ 105,986
Business Attraction Incentive Program**+ $ 87,363
Public Safety Positions to PrePandemic Levels $ 7,749,590 I.T. Critical, Major Projects; Execute Contract Tyler Technologies+ $ 1,229,601 In Process Projects Commited
Actual thru
03/31/26
Remaining
balance
Beautification Crew Pilot Program + $ 875,000 $ 571,045 $ 303,955 Public Safety Communications Center Critical Needs $ 600,000 $ 473,283 $ 126,717 General Government Services & Critical Projects $ 2,681,082 $ 2,681,082 $ - Committed funds $ 15,676,972
Spent $ 15,246,300
Remaining Committed $ 430,672
Current Balance $ - Funds to allocate/reallocate
+ City Council Strategic Objective
** dependent on program subscription
American Rescue Plan Act
Item 15
• Forecasting the sale of City owned property.
• Revenue projections (property tax, sales tax and vehicle in-lieu fees, and transient occupancy tax) and updated labor cost estimates updated for Fiscal Year 25/26 through Fiscal Year 32/33.

A summary of the Financial Forecast is provided below. A version demonstrating the full forecast period is attached to this report as Attachment 3.

APPROPRIATIONS LIMIT FOR FISCAL YEAR 26/27
Article XIIIB of the California State Constitution was established by the passing of Proposition 4 by California voters in 1979. This legislation, which was later amended by the passage of proposition 111 in 1990, placed limits on the amount of proceeds of taxes that State and local agencies can appropriate and spend. The appropriations limit, which is different for every agency, is calculated each year just prior to the beginning of the fiscal year. The appropriations limit is calculated using the annual change in California per capita income and the percentage change in population for the County of Sacramento.

The appropriations limit for the City of Citrus Heights for Fiscal Year 26/27 is calculated to be $77,768,468. The appropriations subject to the limit are $40,870,868. The City’s appropriations subject to the limit are well under the appropriations limit. The actual calculation is provided below.

General Fund Long Range Financial Forecast
With Partial Street Funding
6/24/2026
FY 2025-26 FY 2025-26 FY 2026-27 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Amended Projected Adopted Projected Projected Projected Projected Beginning Reserve Balance 35,327,665 35,327,665 36,589,637 36,589,637 33,977,859 30,845,985 27,335,005 TOTAL REVENUE 47,320,601 47,857,007 46,922,397 47,095,388 47,885,092 48,713,135 49,819,773 TOTAL OPERATING EXPENDITURES (45,063,953) (44,052,258) (45,744,984) (46,092,165) (47,016,966) (48,224,116) (49,306,198) Net Operating Position 2,256,648 3,804,749 1,177,413 1,003,223 868,126 489,019 513,576 ARPA 1,957,223 1,957,223
STREET REPAIRS (4,000,000) (4,000,000) (4,000,000) (4,000,000) (4,000,000) (4,000,000) (4,000,000) Auburn Blvd - Phase 2 Match
Auburn Facility Improvements (500,000) (500,000)
Casa Bella 385,000
Ending Reserve Balance 35,041,535 36,589,637 33,767,050 33,977,859 30,845,985 27,335,005 23,848,580 Minimum Reserve per City Council Policy - 17% $ 7,660,872 $ 7,488,884 $ 7,776,647 $ 7,835,668 $ 7,992,884 $ 8,198,100 $ 8,382,054 Over(under) Reserve Target 27,380,663 29,100,753 25,990,403 26,142,191 22,853,101 19,136,905 15,466,527 City Manager Target Reserve - 25% $ 11,265,988 $ 11,013,065 $ 11,436,246 $ 11,523,041 $ 11,754,241 $ 12,056,029 $ 12,326,549 Over(under) Reserve Target 23,775,547 25,576,572 22,330,804 22,454,818 19,091,744 15,278,976 11,522,031 Item 15
Finance Committee Review
The information presented in this report was reviewed by the Finance Committee on June 19, 2026.

Attachments

1. Resolution Amending Fiscal Year 26/27 Budget
The Appropriation Limit Calculation is required by Article XIIIB of the California State Constitution. It consists of the classification of appropriated revenues into proceeds and non-proceeds of taxes for the 2021-22 fiscalyear. The most favorable population and cost-of-living factors are then applied to the appropriation limit calculation from the previous fiscal year.

Appropriations Subject to the Limit
Fiscal Year 2026-27 General Fund Revenues 46,922,397
Less: Nonproceeds of Taxes 6,051,529
Plus: User Fees in excess of costs -
Total Appropriations Subject to the Limit 40,870,868
Fiscal Yea Fiscal Year 2025-26 Appropriation Limit 74,204,380 A. Cost of Living Adjustment - CPI* 1.0495
B. Population Adjustment ** 0.9986
Change Factor (A x B) 1.0480307
Increase in the appropriation limit 3,564,088
Fiscal Year 2026-27 Appropriation Limit 77,768,468
Remaining appropriation capacity 36,897,600
Available capacity as a percent of the appropriation limit 47.45% * Based on percentage change in California per capita personal income. ** Based on annual population change for the County of Sacramento.

City of Citrus Heights
Appropriation Limit Calculation
Fiscal Year 2026-27
Item 15
a. Fiscal Year 2026/27 Mid-Cycle Budget Adjustments

2. Resolution Establishing an Appropriations Limit for Fiscal Year 26/27

3. Appropriation Limit 26-27 Calculation

4. General Fund Long Range Financial Forecast
Item 15
RESOLUTION NO. 2026 - ____

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS

HEIGHTS, CALIFORNIA, APPROVING AMENDMENTS TO THE
FISCAL YEAR 2026-27 BUDGET
WHEREAS, on June 11, 2025, the City Council adopted the budget for the City of Citrus Heights for Fiscal Year 2026-27; and
WHEREAS, based upon a review of revenues and expenditures, staff has recommended amendments to the Fiscal Year 2026-27 Budget; and
WHEREAS, the Finance and Administration Committee reviewed the proposed budget amendments on June 09, 2026; and
WHEREAS, the City Council has reviewed information on the status of revenues and expenditures for the 2026-27 Fiscal Year which is the basis for the recommended budget amendments.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Citrus Heights approves amendments to the Fiscal Year 2026-27 Budget as provided for in the attached Exhibit A.

PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 24th day of June 2026, by the following vote, to wit:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:

MariJane Lopez-Taff, Mayor
ATTEST:

Amy Van, City Clerk
Exhibit
a. FY 2026/27 Mid-Cycle Budget Adjustments
Item 15
Exhibit A
Fiscal Year 2026/27 Mid-Cycle Budget Adjustments
Item 15

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CITRUS

HEIGHTS, CALIFORNIA, ESTABLISHING AN APPROPRIATION
LIMIT FOR FISCAL YEAR 2026-27
WHEREAS, Article XIIIB of the California Constitution provides that the total annual appropriations subject to limitation of each governmental entity, including this City, shall not exceed the appropriation limit of such entity of government for the prior year adjusted for changes in population and inflation mandated by Proposition 4 passed in November 1979 and Proposition 111 passed in June 1990 except as otherwise provided for in said Article XIIIB and implementing State statutes;
WHEREAS, pursuant to said Article XIIIB of said California Constitution, and Section 7900 et seq. of the California Government Code, the City is required to set its appropriation limit for each fiscal year. In setting said limit, the City is required to select the following factors: 1) California Per Capita Income, multiplied by 2) the greater of city or county population growth; WHEREAS, the City of Citrus Heights reserves the right to change or revise any growth factors associated with the calculation of the Proposition 111 limit, if such changes or revisions would result in a more advantageous appropriation limit; and WHEREAS, pursuant to Section 7910 of said California Government Code, the City Manager has made available to the public the documentation used in the determination of said appropriation limit.

NOW THEREFORE BE IT RESOLVED by the City Council of the City of Citrus Heights that the factors used in determining the 2026-27 appropriation limit will be the California Per Capita Income change and the percentage change in population for the County of Sacramento. The appropriation limit for Fiscal Year 2026-27 is $77,768,468.

PASSED AND ADOPTED by the City Council of the City of Citrus Heights, California, this 24th day of June, 2026, by the following vote, to wit:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:

MariJane Lopez-Taff, Mayor
ATTEST:

Amy Van, City Clerk
Item 15
The Appropriation Limit Calculation is required by Article XIIIB of the California State Constitution. It consists of the classification of appropriated revenues into proceeds and non-proceeds of taxes for the 2021-22 fiscalyear. The most favorable population and cost-of-living factors are then applied to the appropriation limit calculation from the previous fiscal year.

Appropriations Subject to the Limit
Fiscal Year 2026-27 General Fund Revenues 46,922,397
Less: Nonproceeds of Taxes 6,051,529
Plus: User Fees in excess of costs -
Total Appropriations Subject to the Limit 40,870,868
Fiscal Year Fiscal Year 2025-26 Appropriation Limit 74,204,380 A. Cost of Living Adjustment - CPI* 1.0495
B. Population Adjustment ** 0.9986
Change Factor (A x B) 1.0480307
Increase in the appropriation limit 3,564,088
Fiscal Year 2026-27 Appropriation Limit 77,768,468
Remaining appropriation capacity 36,897,600
Available capacity as a percent of the appropriation limit 47.45% * Based on percentage change in California per capita personal income. ** Based on annual population change for the County of Sacramento.

City of Citrus Heights
Appropriation Limit Calculation
Fiscal Year 2026-27
Printed on Recycled Paper
Item 15
General Fund Long Range Financial Forecast
With Partial Street Funding
6/24/2026
FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2025-26 FY 2026-27 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 Actual Actual Actual Amended Projected Adopted Projected Projected Projected Projected Projected Projected Projected Beginning Reserve Balance 11,867,532 22,427,088 30,672,747 35,327,665 35,327,665 36,589,637 36,589,637 33,977,859 30,845,985 27,335,005 23,848,580 20,407,072 17,207,615 TOTAL REVENUE 44,442,810 46,170,045 48,376,007 47,320,601 47,857,007 46,922,397 47,095,388 47,885,092 48,713,135 49,819,773 50,972,301 52,388,103 53,909,430 TOTAL OPERATING EXPENDITURES (35,788,536) (41,984,301) (43,926,736) (45,063,953) (44,052,258) (45,744,984) (46,092,165) (47,016,966) (48,224,116) (49,306,198) (50,413,809) (51,587,561) (52,758,080) Net Operating Position 8,654,274 4,185,744 4,449,271 2,256,648 3,804,749 1,177,413 1,003,223 868,126 489,019 513,576 558,492 800,543 1,151,350 ARPA 3,252,312 4,059,914 4,205,647 1,957,223 1,957,223
STREET REPAIRS (4,000,000) (4,000,000) (4,000,000) (4,000,000) (4,000,000) (4,000,000) (4,000,000) (4,000,000) (4,000,000) (4,000,000) (4,000,000) Auburn Blvd - Phase 2 Match
Auburn Facility Improvements (500,000) (500,000)
Casa Bella 385,000
Ending Reserve Balance 23,774,118 30,672,747 35,327,665 35,041,535 36,589,637 33,767,050 33,977,859 30,845,985 27,335,005 23,848,580 20,407,072 17,207,615 14,358,965 Minimum Reserve per City Council Policy - 17% $ 6,084,051 $ 7,137,331 $ 7,467,545 $ 7,660,872 $ 7,488,884 $ 7,776,647 $ 7,835,668 $ 7,992,884 $ 8,198,100 $ 8,382,054 $ 8,570,347 $ 8,769,885 $ 8,968,874 Over(under) Reserve Target 17,690,067 23,535,415 27,860,120 27,380,663 29,100,753 25,990,403 26,142,191 22,853,101 19,136,905 15,466,527 11,836,725 8,437,730 5,390,091 City Manager Target Reserve - 25% $ 8,947,134 $ 10,496,075 $ 10,981,684 $ 11,265,988 $ 11,013,065 $ 11,436,246 $ 11,523,041 $ 11,754,241 $ 12,056,029 $ 12,326,549 $ 12,603,452 $ 12,896,890 $ 13,189,520 Over(under) Reserve Target 14,826,984 20,176,671 24,345,981 23,775,547 25,576,572 22,330,804 22,454,818 19,091,744 15,278,976 11,522,031 7,803,620 4,310,725 1,169,445 O:\Budget\25-26 & 26-27 Annual Budget\Mid Cycle\Financial Model\Copy of DRAFT 10-Year Forecast 26-27 Mid Cycle Draft Item 15

Citrus Heights City Council MeetingsJune 24, 2026

Citrus Heights City Council Meetings
June 24, 2026