DATE: 05/06/2026
TO: Honorable Mayor and City Council Members
FROM: Finance Department
2026-135
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
RESOLUTION DECLARING INTENTION TO LEVY AND COLLECT ASSESSMENTS WITHIN LIGHTING MAINTENANCE DISTRICT NO. 2003-1 FOR FISCAL YEAR 2027, APPROVING PRELIMINARY ENGINEER’S REPORT, AND PROVIDING NOTICE OF
PUBLIC HEARING ON PROPOSED ASSESSMENTS
EXECUTIVE SUMMARY:
This staff report asks the City Council to adopt a resolution declaring intention to levy and collect Fiscal Year 2027 assessments, approve the preliminary Engineer's Report, and set a public hearing for June 17, 2026. At that time, the City Council may approve the annual assessments and order the levy of assessments within the District. Lighting Maintenance District No. 2003-1 provides lighting maintenance and operating services for the streetlights, traffic signals, and related appurtenances within the District’s boundaries.
RECOMMENDED ACTION:
That the City Council adopt Resolution No. 2026-023, declaring intention to levy and collect assessments within Lighting Maintenance District No. 2003-1 for Fiscal Year 2027, approving preliminary Engineer's Report, and providing notice of public hearing on proposed assessments.
BACKGROUND & HISTORY:
Lighting Maintenance District No. 2003-1 (“LMD 2003-1” or “District”) was established in 2003 in accordance with the provisions of the Landscaping and Lighting Act of 1972 (the "1972 Act"). The district's purpose is to provide lighting maintenance and operating services for the streetlights, traffic signals, and related appurtenances within its boundaries.
The annual assessments proposed to be levied within the District will pay for the maintenance services during Fiscal Year 2027. The services provided include all necessary operations, administration, capital replacements, and maintenance required to keep the above-mentioned improvements in a healthy and satisfactory working condition.
ANALYSIS:
The State of California Street and Highways Code Section 22500 requires an annual review of the assessments levied by the assessment districts formed under the 1972 Act.
To levy and collect special assessments within the districts, an Engineer's Report must be prepared, which provides details on the improvements that are maintained and the estimated budgets for the District.
On April 15, 2026, the City Council adopted Resolution No. 2026-018 to initiate the proceedings to levy and collect assessments for the District for Fiscal Year 2027, appointed Spicer Consulting Group, LLC as the engineer of record, and ordered the preparation of an Engineer's Report for the District.
Attached to this report is the preliminary Engineer's Report (the “Report”) for the District, which includes a detailed description of the existing improvements, estimated maintenance costs, assessment apportionment methods, and a diagram showing the boundaries. The report also provides analyses of the District's financial status.
FINANCIAL IMPACT:
The district’s construction, installation, operation, service, and maintenance will be funded by the assessments levied and collected within the District. For Fiscal Year 2027, it is projected that the assessment revenues will be sufficient to cover the district’s operating costs during the same fiscal period. The estimated surplus will be added to the capital reserve for future capital improvements within the District.
Below is an overview of the District’s estimated assessment revenues and proposed expenditures for Fiscal Year 2027. The attached Report provides detailed information.
Estimated
Costs
Estimated
Assessment
Revenue
General
Benefit
Contribution (1)
Estimated
Excess/(Deficit)
Actual Assessment
YOY % Change
$83,965.00 $127,247.09 $6,082.98 $49,365.07 0.00%
1) Benefit received by non-residents of the District for the major/arterial streetlights, traffic signals, traffic control devices and landscape improvements. This amount is contributed by the City’s General Fund.
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the common sense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action merely declares the City's intent to levy and collect assessments within the District for Fiscal Year 2027, and there is no possibility that adopting the resolution will have a significant effect on the environment. Therefore, no environmental analysis is required.
PREPARED BY: ERMA MONTANO, SENIOR FINANCIAL ANALYST
REVIEWED BY: BRUCE FOLTZ, FINANCE DIRECTOR
ATTACHMENTS:
1. Exhibit 1 – FY 2027 LMD 2003-1 Preliminary Engineer’s Report
2. Exhibit 2 – Resolution No. 2026-023