Agenda Item No: O.1
AGENDA REPORT
DATE: October 21, 2025
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: PW Updated Landscape Oversight Committee Recommendations for Landscaping and Lighting Maintenance District Proposition 218 Balloting Process
Discussion and Direction Regarding Landscape Oversight Committee Recommendations for Modified Timeline for Landscaping and Lighting Maintenance District Proposition 218 Balloting Process
Funding Source: N/A
Contact: Chris Lewis, (707) 428-7089
RECOMMENDED ACTION
Receive report, open discussion, and provide direction to staff.
STATEMENT OF ISSUE
The Landscape Oversight Committee (LOC) provided an updated recommendation to extend the Proposition 218 balloting process timeline with a new target effective date for new assessment rates of July 1, 2027, or fiscal year (FY) 2027-2028.
DISCUSSION
In 2023, the City conducted a community engagement and balloting process in accordance with Article XIII D of the California Cons titution (also known as Proposition 218) to increase assessment rates in nine Landscaping and Lighting Maintenance District (LLMDs) that were projected to have a structural budget deficit.
The ballot was passed by property owners in the Gateway and Para dise Valley communities , resulting in the formation of LLMDs No. 2023 -1 (Gateway) and No. 2023 -11 (Paradise Valley).
However, the ballot was not passed by property owners in the remaining seven LLMDs: No. 3 – Waterman Highlands, No. 5 – Smith Ranch (Rancho Solano), No. 6 – Peppertree, No. 7 – Rolling Hills, No. 8 – Kolob Estates, No. 12 – Downtown Business District, and No. 13 – North Cordelia.
As a result, services were reduced in these communities.
At the April 17, 2025, LOC meeting, the Committee moved to recommend to the City Council that LLMD No. 5 – Smith Ranch and LLMD No. 7 – Rolling Hills be considered for a second Proposition 218 balloting process to increase assessments rates and address each district’s structural budget deficit. The LOC also rec ommended that a third LLMD be considered if at least 10% of district property owners provide written requests to be included in a balloting process by August 1, 2025.
The LOC’s recommendation included a target effective date for new assessment rates of Ju ly 1, 2026, or FY 202 6-2027, based on the 2026 LLMD Proposition 218 Balloting Timeline shown in Exhibit A.
On May 20, 2025, staff brought the 2026 LLMD Proposition 218 Balloting Timeline and the LOC recommendations to the council and was directed to move forward with all recommendations, except that a third district would not be included in the process.
Rick Johnson, the LOC Chair, has received feedback from members of the Smith Ranch and Rolling Hills communities regarding their concerns about the current timeline citing limited time available for community engagement activities.
The current timeline only allows approximately one month (February 2026) for community engagement between the scheduled publication of the Engineer’s Reports (a technical document required by California law that outlines the details of a proposed assessment district ) and when ballots will be mailed to property owners on March 4, 2026.
While community engagement may commence at any time, m any property owners stated that engagement was less effective without the Engineer's Reports during the 2023 ballot process .
Additionally, many property owners did not think there was enough time between the publication of the Engineer's Reports and the mailing of the ballots (approximately two months) to thoroughly consider their options during the 2023 process.
At the August 28, 2025, LOC meeting, the Committee moved to update their recommendation to council to extend the Proposition 218 balloting process timeline with a new target effective date for new assessment rates of July 1, 2027, or FY 2027-2028.
The proposed modified timeline will allow for a longer community engagement period between the scheduled publication of the Engineer’s Reports and when ballots will be mailed to property owners. The LOC and resident-led LLMD working groups will have approximately one year (February 2026 through February 2027) to share information, collaborate with their community, and encourage property owner participation in the balloting process.
Exhibit A shows the current timeline that was accepted by the council on May 20, 2025, with a target effective date for new assessment rates of July 1, 2026 (FY 2026-2027).
Exhibit B shows the proposed modified timeline with a target effective date for new assessment rates of July 1, 2027 (FY 2027-2028).
Council Direction
Staff requests the c ouncil’s direction regarding the LOC’s recommendations that the council approve the proposed modified timeline with a target effective date for new assessment rates of July 1, 2027 (FY 2027-2028).
FINANCIAL IMPACT
N/A
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
On August 28, 2025, the Landscape Oversight Committee moved to update their recommendation to council to extend the Proposition 218 balloting process timeline with a new target effective date for new assessment rates of July 1, 2027, or FY 2027-2028.
ALTERNATIVE ACTION
The council may choose to request more information from staff or the LOC or take other related actions.
COORDINATED WITH
Landscape Oversight Committee
STAFF CONTACT
Chris Lewis, Sr. Management Analyst
(707) 428-7089
[email protected]
ATTACHMENTS
Attachment 2: Exhibit A - Current Timeline (Target Effective Date July 1, 2026) Attachment 3: Exhibit B - Proposed Modified Timeline (Target Effective Date July 1, 2027)