Agenda Item No: N.15
AGENDA REPORT
DATE: May 19, 2026
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolutions 2026-88 Through 2026 -105 PW Preliminary Approval of F iscal Year 2026-2027 L andscaping and Lighting Maintenance Districts Engineer’s Reports and Assessments
Granting Preliminary Approval of the Fiscal Year 2026 -2027 Engineer’s Reports, Declaring Intention to Order the Levy and Collection of Assessments, and Providing Notice of a Public Hearing for Landscaping and Lighting Maintenance Districts No. 1 – Gateway, No. 3 – Waterman Highlands, No. 5 – Smith Ranch, No. 6 – Peppertree Drive, No. 7 – Rolling Hills, No. 8 – Kolob Estates, No. 10 – Southbrook, No. 11 – Paradise Valley North, No. 12 – Downtown Business District, No. 13 – Green Valley (formerly North Cordelia), No. 14 – Woodlake, No. 15 – Gold Ridge, No. 16 – Creekside at Cordelia, No. 17 – Chadbourne-Beck-Cordelia, No. 18 – Gold Ridge Park, No. 19 – Corporate Commons, No. 2023-1 (Gateway), and No. 2023-11 (Paradise Valley)
Funding Source: Various LLMD Funds
Contact: Chris Lewis, (707) 428-7089
RECOMMENDED ACTION
Hold public hearing and adopt resolutions.
STATEMENT OF ISSUE
The adoption of these resolutions will grant preliminary approval of the fiscal year (FY) 2026 - 2027 engineer’s reports, declare intention to order the levy and collection of assessments, and set the date and provide notice for a public hearing for 18 landscaping and lighting maintenance districts (LLMDs).
DISCUSSION
Annual Process
The City formed these special districts under the State of California Landscaping and Lighting Act of 1972, California Streets and Highways Code Section 22500, et seq., to provide a funding source for the maintenance of the landscaping and lighting improvements within the various development areas.
The preliminary approval of the engineer’s reports is the first step in the process of levying the annual assessments. Final approval of the assessments requires a public hearing, which is scheduled for the City Council meeting on June 16, 2026.
Annual Assessments
Annual assessment amounts for each district are subject to the provisions of Proposition 218. In August 2023, a lawsuit (Thacker v. City of Fairfield) was filed against the City in the Solano County Superior Court alleging that the assessments levied in LLMD No. 7 – Rolling Hills violated Proposition 218. On February 6, 2026, a Final Stipulated Judgment was issued wherein the City was ordered to refrain from levying an assessment in LLMD No. 7 – Rolling Hills that exceeds the assessment amounts in effect prior to the Proposition 218 effective date, unless said assessment complies with the California Constitution, Article XIII D, Section 4.
To bring all LLMDs that were establishe d prior to 1996 in compliance the Final Stipulated Judgment, on April 21, 2026, the council motioned to set the annual assessment levies for LLMD Nos. 1 – Gateway, 3 – Waterman Highlands, No. 6 – Peppertree Drive, No. 7 – Rolling Hills, No. 8 – Kolob Estates, No. 11 – Paradise Valley North, No. 12 – Downtown Business District, and No. 13 – Green Valley (formerly North Cordelia) at or below the assessment amount levied in FY 1996 - 1997. These eight districts were formed prior to the passage of Proposition 218 in 1996, and a ballot proceeding was not conducted to increase assessments beyond the FY 1996 -1997 rates.
Commercial parcels within these districts are proposed at $0 per parcel pending verification of the amount levied in FY 1996 -1997. Upon verification of rates, assessments for commercial properties will be resumed in FY 2027-2028.
Annual assessment amounts for all other districts are set at or below the maximum assessment rate adopted either at the time the district was formed or at the conclusion of a subsequent ballot proceeding, including applicable Consumer Price Index (CPI) adjustments, in accordance with Proposition 218 requirements.
Comprehensive Budgets
Beginning in FY 2026 -2027, LLMD budgets will include all revenues and expenditures necessar y for the operation and administration of each district. Prior to FY 2026-2027, certain General Fund contributions made in accordance with Resolution No. 1991-213b, and Resolution No. 1991-214 were not reflected in the district budget. Specifically, general administrative overhead costs were redirected from the LLMD budgets and reflected in the General Fund budget only. Similarly, costs for streetlight electricity within each district were paid up front by the Public Works Operations General Fund and each district would reimburse the General Fund for the cost of service, minus a General Fund credit established by Resolution No. 1991-213b. To provide a comprehensive overview of all costs, funding, and General Fund contributions required by each district , the administrative overhead and streetlight costs and corresponding General Fund contributions will be reflected in each district budget.
The following summaries describe the proposed FY 2026-2027 budgets, annual assessments, and any proposed rate adjustments for each district.
LLMD No. 1 – Gateway:
Landscaping and lighting maintenance services in the Gateway area were provided by LLMD No. 1 – Gateway from 1984 through June 30, 2023. Due to the increased cost of services over time and the fixed maximum assessment rates, the revenue collected under this district was no longer sufficient to adequately fund the required services.
In FY 2022-2023, the council adopted Resolution No. 2022-210 authorizing a $165,000 loan from the Intergovernmental Loan Fund to the district. The purpose of the loan was to minimize the disruption of services while a community engagement and Proposition 218 balloting process was carried out to form a replacement district with higher assessment rates. The loan is repayable over five years in equal annual installments beginning in FY 2023-2024 and does not bear interest.
In June 2023, in the absence of a majority protest, the council formed LLMD No. 2023 -1 (Gateway) to replace LLMD No. 1 – Gateway, beginning July 1, 2023. The City will continue to collect assessments under LLMD No. 1 – Gateway and utilize the district’s available cash balance to pay the annual loan installments through FY 202 7-2028. The council may consider the dissolution of this district in FY 2028-2029.
The total FY 2026-2027 assessment levy for the Gateway district is proposed at $18,200 which is equal to the total levied in FY 2025 -2026. Assessment rates for each parcel vary depending on parcel size and are below the rate assessed for each parcel in FY 1996-1997.
The budget for this district includes the fourth annual loan payment and applicable administrative costs. The total proposed revenue is $1 21,729, which include s assessments of $18,200, General Fund contributions of $3,098, and interest of $432. There will be no operations or maintenance services provided under this district.
Based on the five-year budget projections included in the Engineer’s Report, the Gateway district will have sufficient revenue and cash balance to cover all loan payments and necessary expenditures through FY 2030-2031.
LLMD No. 3 – Waterman Highlands:
Landscaping maintenance services in the Waterman Highlands area have been provided by LLMD No. 3 – Waterman Highlands since 1987. Due to the increased cost of services over time and the fixed maximum assessment rates, the revenue collected under this district was no longer sufficient to adequately fund the required services.
In FY 2022-2023, the council adopted Resolution No. 2022-211 authorizing a $28,000 loan from the Intergovernmental Loan Fund to the district. The purpose of the loan was to minimize the disruption of services while a community engagement and Proposition 218 balloting process was carried out to form a replacement district with higher assessment rates. The loan is repayable over five years in equal annual installments beginning in FY 2023-2024 and does not bear interest.
In June 2023, a majority protest against the format ion of a replacement district was filed by the Waterman Highlands property owners, and the council abandoned the formation proceedings.
The City will continue to collect assessments and provide limited services under L LMD No. 3 – Waterman Highlands.
FY 2026-2027 assessment rate for the Waterman Highlands district is proposed to decrease from the FY 2025-2026 rate of $195 per parcel to $151.71 per parcel which is equal to the assessment levied in FY 1996-1997.
The budget for this district includes operat ions, maintenance, administration, and the fourth of five annual loan repayments of $5,600. The total proposed revenue for this district is $ 54,973, which includes assessments of $ 36,714, General Fund contribution s of $17,834, and interest of $425. There are no special projects planned for this district.
Based on the five -year budget projections included in the Engineer’s Report, the Waterman Highlands district will have sufficient revenue and cash balance to cover all required loan payments through FY 2027-2028. However, due to rising administrative costs, fixed and reduced maximum assessment rates, and a depleted cash reserve, the district’s available budget for operating expenses is projected to decrease by 55% from FY 2026-2027 to FY 2030-2031.
The decrease in available budget, along with the diminishing purchasing power over time due to inflation, will result in a decrease in the quantity and quality of services.
LLMD No. 5 – Smith Ranch:
Landscaping and lighting maintenance services in the Smith Ranch (also known as Rancho Solano) area have been provided by LLMD No. 5 – Smith Ranch since 1987. Due to the increased cost of services over time, the revenue collected under this district was no longer sufficient to adequately fund the required services.
In FY 2022-2023, the City conducted a community e ngagement and Proposition 218 process to form a replacement district with higher assessment rates. In June 2023, a majority protest against the formation of a replacement district was filed by the Smith Ranch property owners, and the council abandoned the formation proceedings. The City will continue to collect assessments and provide limited services under LLMD No. 5 – Smith Ranch.
The FY 2026-2027 assessment levy for the Smith Ranch district is proposed to increase from the FY 2025 -2026 rate of $740.43 per parcel to $760.42 per parcel. The assessment levy is the maximum rate allowable by the district’s adopted assessment range, which was established in 1999 by Resolution No. 99 -122 and is adjusted each year by the October SF -Oakland-Hayward Urban Wage Earners and Clerical Workers CPI.
The Bureau of Labor Statistics was unable to collect the October 2025 reference period survey data due to the 2025 federal government shut down. The August 2025 CPI was used to calculate the FY 2026-2027 maximum assessment rates.
The budget for this district includes operations, maintenance, and administration. The total proposed revenue for this district is $ 1,011,195, which includes assessments of $ 912,504, a General Fund contribution of $ 94,303, and interest of $ 4,388. Special projects for this district may include landscaping renovation and various irrigation repairs.
The budget for water services is expected to increase from $95,000 -$130,000 as budgeted in previous years to $212,000 as budgeted in FY 2026-2027 due to the new water rates adopted in 2025 and the activation of 13 water meters that were previously not billed to the district. As part of the Public Utility Master Plan (PUMP), the Fairfield Municipal Utilities Division (FMU) conducted a comprehensive water rate study which identified a number of water meters that were previously not billed to the individual or entity receiving the services. The necessary billing updates are anticipated to be completed by the end of FY 2025-2026.
Based on the five -year budget projections included in the Engineer’s Report, the Smith Ranch district requires assessments to be levied at maximum rates and must supplement its annual revenue with an average of $ 136,000 from the reserve fund balance each year to cover all necessary expenses through FY 2028-2029. The district is projected to have a budget shortfall of approximately $150,000 in FYs 2029-2030 and FY 2030-2031. However, the City will consult with the Rancho Solano Homeowners Association (HOA) to invoke the cost sharing Me morandum of Understanding executed on September 16, 2025, by Resolution No. 2025 -177. If the HOA does not provide supplemental funding, services will be reduced to a level that can be supported with available revenues.
LLMD No. 6 – Peppertree Drive:
Landscaping maintenance services in the Peppertree area have been provided by L LMD No. 6 – Peppertree since 1987. Due to the increased cost of services over time and the fixed maximum assessment rates, the revenue collected under this district was no longer sufficient to adequately fund the required services.
In FY 2022-2023, the council adopted Resolution No. 2022 -212 authorizing a $28,000 loan from the Intergovernmental Loan Fund to the district. The purpose of the loan was to minimize the disruption of services while a community engagement and Proposition 218 balloting process was carried out to form a replacement district with higher assessment rates. The loan is repayable over five years in equal annual installments beginning in FY 2023-2024 and does not bear interest.
In June 2023, a majority protest against the formation of a replacement district was filed by the Peppertree property owners, and the council abandoned the formation proceedings. The city will continue to collect assessments and provide limited services under LLMD No. 6 – Peppertree.
The FY 2026-2027 assessment levy for the Peppertree Drive district is proposed to decrease from the FY 2025-2026 rate of $60 per parcel to $32.30 per parcel which is equal to the assessment levied in FY 1996-1997.
The budget for this district includes operations, maintenance, administration, and the fourth of five annual loan repayments of $5,600. The total proposed revenue for this district is $2 1,972, which includes assessments of $ 15,246, General Fund contributions of $6,445, and interest of $281. There are no special projects planned for this district.
Based on the five -year budget projections included in the Engineer’s Report, the Peppertree Drive district will have sufficient revenue and cash balance to cover all required loan payments through FY 2027-2028. However, due to the reduced and fixed maximum assessment rates, the district is projected to deplete its cash reserve by the end of FY 2026-2027. The district’s available budget for operating expenses is projected to decrease to less than $4,000 in FY 2027-2028.
The decrease in available budget, along with the diminishing purchasing power over time due to inflation, will result in a decrease in the quantity and quality of services.
LLMD No. 7 – Rolling Hills:
Landscaping and lighting maintenance services in the Rolling Hills area have been provided by LLMD No. 7 – Rolling Hills since 1988. Due to the increased cost of services over time and the fixed maximum assessment rates, the revenue collected under this di strict was no longer sufficient to adequately fund the required services.
In FY 2021-2022, the council adopted Resolution No. 2022-97 authorizing a $410,000 loan from the Intergovernmental Loan Fund to the district. The purpose of the loan was to minimiz e the disruption of services while a community engagement and Proposition 218 balloting process was carried out to form a replacement district with higher assessment rates. The loan is repayable over five years in equal annual installments beginning in FY 2023-2024 and does not bear interest.
In June 2023, a majority protest against the formation of a replacement district was filed by the Rolling Hills property owners, and the council abandoned the formation proceedings. The city will continue to collect assessments and provide limited services under LLMD No. 7 – Rolling Hills.
The FY 2026-2027 assessment levy for the Rolling Hills district is proposed to decrease from the amount levied in FY 2025-2026. The assessment for the Rolling Hills development is proposed to decrease from $300 per parcel to $196.23 per parcel, and the assessment for the Serpas Ranch development is proposed to decrease from $250 per parcel to $151.26 per parcel. The proposed FY 2026-2027 rates are equal to the assessments levied in FY 1996-1997.
Assessments for commercial properties are proposed at $0 per parcel pending verification of the amount levied in FY 1996 -1997. Upon verification of rates, assessments for commercial properties will be resumed in FY 2027-2028.
The budget for this district includes operations, maintenance, administration, and the fourth of five annual loan repayments of $82,000. The total proposed revenue for this district is $271,897, which includes assessments of $185,290, a General Fund contribution of $85,628, and interest of $980. There are no special projects planned for this district.
Based on the five -year budget projections included in the Engineer’s Report, the Rolling Hills district will have sufficient revenue and cash balance to cover all required loan payments through FY 2027-2028. However, due to the reduced and fixed maximum assessment rates, the district is projected to deplete its cash reserve by the end of FY 2026 -2027. The district budget for operating expenses will be reduced from $302,843 in FY 2025-2026 to $174,929 in FY 2026-2027.
LLMD No. 8 – Kolob Estates:
Landscaping and lighting maintenance services in the Kolob area have been provided by LLMD No. 8 – Kolob Estates since 1989. Due to the increased cost of services over time and the district’s fixed maximum assessment rates, the revenue collected under this district was no longer sufficient to adequately fund the required services.
In FY 2022-2023, the City conducted a community engagement and Proposition 218 process to form a replacement district with higher assessment rates. In June 2023, a majority protest against the formation of a replacement district was filed by the Kolob Estates property owners, and the council abandoned the formation proceedings. The City will continue to collect assessments and provide limited services under LLMD No. 8 – Kolob Estates.
The FY 2026-2027 assessment levy for the Kolob district is proposed decrease from the FY 2025- 2026 rate of $400 per parcel to $302.24 per parcel which is equal to the assessment levied in FY 1996-1997.
The budget for this district includes operations, maintenance, and administration. The total proposed revenue for this district is $ 52,866, which includes assessments of $39,291, a General Fund contribution of $13,008, and interest of $567. There are no special projects planned for this district.
Based on the five -year budget projections included in the Engineer’s Report, the Kolob Estates district must supplement its annual revenue with an average of $ 26,055 from the reserve fund balance each year to cover all necessary expenses through FY 2027-2028. The district is projected to deplete its cash reserve by the end of FY 20 27-2028. Due to the reduced and fixed maximum assessment rates, the district budget for operating expenses will be reduced from $ 47,992 in FY 2027-2028 to $35,747 in FY 2028-2029.
LLMD No. 10 – Southbrook:
Landscaping and lighting maintenance services in the Southbrook area have been provided by LLMD No. 10 – Southbrook since 1989.
The FY 202 6-2027 assessment levies for the Southbrook district are proposed to increase from the FY 2025-2026 rates as shown in Section 4 of the proposed Engineer’s Report. The proposed assessments do not exceed maximum allowable rates adopted by the district.
The maximum assessment rates for parcels included in the original district formation are adjusted each year by the October SF -Oakland-Hayward Urban Wage Earners and Clerical Workers CPI, and the maximum assessment rates for parcels included in Annexation Nos. 1 -10 are adjusted each year by the October SF -Oakland-Hayward All Urban Consumers CPI. The Bureau of Labor Statistics was unable to collect the October 2025 reference period survey data due t o the 2025 federal government shut down. The August 2025 CPI was used to calculate the FY 2026 -2027 maximum assessment rates.
The budget for this district includes operations, maintenance, administration. The total proposed revenue for this district is $ 819,345, which includes assessments of $ 751,889, General Fund contributions of $65,713, and interest of $ 1,742. There are no special projects planned for this district.
The budget for water services is expected to increase from $100,000 - $140,000 as budgeted in previous years to $253,000 as budgeted in FY 2026-2027 due to the new water rates adopted in 2025 and the activation of 23 water meters that were previously not billed to the district. As part of PUMP, the FMU conducted a comprehensive water rate st udy which identified a number of water meters that were previously not billed to the individual or entity receiving the services.
The necessary billing updates are anticipated to be completed by the end of FY 2025-2026.
Based on the five -year budget proje ctions included in the Engineer’s Report, the Southbrook district will nearly deplete its cash reserve by the end of FY 2026-2027. Staff will return to council with options for a Proposition 218 balloting process to increase assessment rates in the distric t.
Pending the balloting process, services may be reduced in FY 2027 -2028 to a level that can be supported with available revenues.
LLMD No. 11 – Paradise Valley North:
Landscaping and lighting maintenance services in the Paradise Valley area were provided by LLMD No. 11 – Paradise Valley North from 1989 through June 30, 2023. Due to the increased cost of services over time and the fixed maximum assessment rates, the revenue collected under this district was no longer sufficient to adequately fund the required services.
In FY 2021-2022, the council adopted Resolution No. 2022-98 authorizing a $175,000 loan from the Intergovernmental Loan Fund to the district. The purpose of the loan was to minimize the disruption of services while a community engagement and Proposition 218 balloting process was carried out to form a replacement district with higher assessment rates. The loan is repayable over five years in equal annual installments beginning in FY 2023-2024 and does not bear interest.
In June 2023, in the absence of a majority protest, the council formed LLMD No. 2023 -11 (Paradise Valley) to replace LLMD No. 11 – Paradise Valley North, beginning July 1, 2023. The City will continue to collect assessments under LLMD No. 11 – Paradise Valley North and utilize the district’s available fund balance to pay the annual loan installments through FY 2027 -2028. The council may consider the dissolution of this district in FY 2028-2029.
The FY 2026-2027 assessment levy for the Paradise Valley North district is proposed to remain at the FY 2025-2026 rate of $16.86 per unit. The proposed assessment levy does not exceed the FY 1996-1997 rate of $76.22 levied for each unit.
The budget for this district includes the fourth of five annual loan repaymen ts of $35,000 and applicable administrative costs. The total proposed revenue is $2 7,409, which includes assessments of $22,998, a General Fund contribution of $4,029, and interest of $382. There will be no operations or maintenance services provided under this district.
Based on the five-year budget projections included in the Engineer’s Report, the Paradise Valley North district will have sufficient revenue and cash balance to cover all necessary expenditures and loan payments through FY 2027-2028.
LLMD No. 12 – Downtown Business District:
Landscaping and lighting maintenance services in the Downtown area have been provided by LLMD No. 12 – Downtown Business District since 1991. Due to the increased cost of services over time and the fixed maximum asses sment rates, the revenue collected under this district was no longer sufficient to adequately fund the required services.
In FY 2022-2023, the council adopted Resolution No. 2022-213 authorizing a $40,000 loan from the Intergovernmental Loan Fund to the district. The purpose of the loan was to minimize the disruption of services while a community engagement and Proposition 218 balloting process was carried out to form a replacement district with higher assessment rates. The loan is repayable over five years in equal annual installments beginning in FY 2023-2024 and does not bear interest.
In June 2023, a majority protest against the formation of a repl acement district was filed by the Downtown Business District property owners, and the council abandoned the formation proceedings. The city will continue to collect assessments and provide limited services under LLMD No. 12 – Downtown Business District.
The total FY 2026 -2027 assessment levy for the Downtown Business District is proposed to decrease from FY 2025 -2026 total amount levied of $60,020 to $44,205. Assessment rates for each parcel vary depending on parcel size and are equal to the rate assessed in FY 1996-1997 for each parcel.
The budget includes operations, maintenance, administration, and the fourth of five annual loan repayments of $8,000. The total proposed revenue for this district is $ 77,263, which includes assessments of $44,206, a General Fund contribution of $32,677, and interest of $380. There are no special projects planned for this district.
Based on the five -year budget projections included in the Engineer’s Report, the Downtown Business District will have sufficient revenue and c ash balance to cover all required loan payments through FY 2027 -2028. However, due to the district’s fixed maximum assessment rates, the district must supplement its annual revenue with an average of over $12,000 from the reserve cash balance each year to cover all necessary expenses through FY 202 8-2029. The district is projected to deplete its cash reserve by the end of FY 202 8-2029. Due to the reduced and fixed maximum assessment rates, the district budget for operating expenses will be reduced in FY 2028-2029.
LLMD No. 13 – Green Valley (formerly North Cordelia):
Landscaping and lighting maintenance services in the Green Valley area have been provided by LLMD No. 13 – Green Valley (formerly North Cordelia) since 1990. Due to the increased cost of services over time and the fixed maximum assessment rates in the majority of the district, the revenue collected under this district was no longer sufficient to adequately fund the required services.
In FY 2021-2022, the council adopted Resolution No. 2022-299 authorizing a $151,000 loan from the Intergovernmental Loan Fund to the district. The purpose of the loan was to minimize the disruption of services while a community engagement and Proposition 218 balloting process was carried out to form a replacement district with higher assessment rates. The loan is repayable over five years in equal annual installments beginning in FY 2023-2024 and does not bear interest.
In June 2023, a majority protest against the formation of a replacement district was filed by the Green Valley property owners, and the council abandoned the formation proceedings. The city will continue to collect assessments and provide limited services under LLMD No. 13 – Green Valley.
The FY 2026-2027 assessment levies for the parcels included in the original Green Valley district boundary area are proposed to decrease from the amount levied in FY 2025 -2026. The assessment for the Citation and Pulte developments is proposed to decrease from $180 per parcel to $82.21 per parcel, and the assessment for all other subdivisions that are within the original district boundaries at the time of formation is proposed to decrease from $170 per parcel to $74.27 per parcel. The proposed FY 2026-2027 rates for these developments are equal to the assessments levied in FY 1996-1997.
The FY 2026-2027 assessment levies for parcels within Annexations 1-3 are proposed to increase from the FY 2025 -2026 rates as shown in Section 4 of the proposed Engineer’s Report. The maximum assessment rates for the developments within Annexations 1-3 are adjusted each year by the October SF-Oakland-Hayward All Urban Consumers CPI and proposed to increase from the FY 2025-2026 rates as shown in Section 4 of the proposed Engineer’s Report. The Bureau of Labor Statistics was unable to collect the October 2025 reference period survey data due to the 2025 federal government shut down. For FY 2026-2027, the August 2025 CPI was used to calculate the maximum assessment rates.
Assessments for commercial properties within the original district boundaries are proposed at $0 per parcel pending verification of the amount levied in FY 1996-1997. Upon verification of rates, assessments for commercial properties will be resumed in FY 2027-2028.
The budget includes operations, maintenance, administration, and the fourth of five annual loan repayments of $30,200. The total proposed revenue for this district is $ 486,006, which includes assessments of $358,577, a General Fund contribution of $126,846, and interest of $582. There are no special projects planned for this district.
Based on the five -year budget projections included in the Engineer’s Report, the Green Valley district will have sufficient revenue and cash balance to cover all required loan payments through FY 2027-2028. However, the reserve cash balance is projected to be nearly depleted by the end of FY 2027-2028.
Due to the reduced and fixed maximum assessme nt rates, the district budget for operating expenses will be reduced from $588,665 in FY 2025-2026 to $375,497 in FY 2026-2027.
LLMD No. 14 – Woodlake:
Landscaping and lighting maintenance services in the Woodlake area have been provided by LLMD No. 14 - Woodlake since 2001.
The FY 2026-2027 assessment levies for the Woodlake district are proposed to increase from the FY 202 5-2026 rates as shown in Section 4 of the proposed Engineer’s Report. The proposed assessment levies do not exceed maximum rates adop ted by the district. All maximum assessment rates are adjusted each year by the October SF -Oakland-Hayward All Urban Consumers CPI. The Bureau of Labor Statistics was unable to collect the October 2025 reference period survey data due to the 2025 federal government shut down. For FY 2026-2027, the August 2025 CPI was used to calculate the maximum assessment rates.
The budget includes operations, maintenance, and administration. The total proposed revenue for this district is $673,960, which includes assessments of $584,575, a General Fund contribution of $79,187, and interest of $10,198. There are no special projects planned for this district.
Based on the five -year budget projections included in the Engineer’s Report, the Woodlake district will require assessment levies to be increased approximately 10% each year to provide all required services and maintain the appropriate cash (65%) and repair (25%) reserve balances as described in Resolution No. 1991-213b.
LLMD No. 15 – Gold Ridge:
Landscaping and lighting maintenance services in the Gold Ridge area have been provided by LLMD No. 15 – Gold Ridge since 2001.
The FY 2026-2027 assessment levies for the Gold Ridge district are proposed to increase from the FY 2025-2026 rates of the proposed Engineer’s Report. The proposed assessment levies do not exceed maximum rates adopted by the district. All maximum assessment rates are adjusted each year by the October SF-Oakland-Hayward All Urban Consumers CPI. The Bureau of Labor Statistics was unable to collect the October 2025 reference period survey data due to the 2025 federal government shut down. For FY 2026 -2027, the August 2025 CPI was used to calculate the maximum assessment rates.
The budget includes operations, maintenance, and administration. The total proposed revenue for this district is $676,150, which includes assessments of $591,632, a General Fund contribution of $ 74,743 and interest of $ 9,775. Special projects planned for this district include landscape renovation and repair.
Based on the five -year budget projections included in the Engineer’s Report, the Gold Ridge district will require assessment levies to be increased approximately 3% each year to provide all required services and maintain the appropriate cash (65%) and repair (25%) reserves as described in Resolution No. 1991-213b.
LLMD No. 16 – Creekside at Cordelia:
Landscaping and lighting maintenance services in the Creekside area have been provided by LLMD No. 16 – Creekside at Cordelia since 2003.
The proposed FY 2026-2027 assessment levies for the Creekside at Cordelia district are proposed to increase from the amount levied in FY 2025 -2026. T he assessment for all parcels that are within the original district boundaries at the time of formation is proposed to increase from $408.17 per unit to $418.39 per unit, and the assessment for parcels in the Enclave at Red Top development is proposed to increase from $405.19 per unit to $415.33 per unit.
The proposed assessment levies are the maximum rates adopted by the district. All maximum rates are adjusted each year by the October SF-Oakland-Hayward All Urban Consumers CPI. The Bureau of Labor Statistics was unable to collect the October 2025 reference period survey data due to the 2025 federal government shut down. The August 2025 CPI was used to calculate the FY 2026-2027 maximum assessment rates.
The budget for this district includes operations, maintenance, administration. The total proposed revenue for this district is $ 110,753, which includes assessments of $ 92,716, a General Fund contribution of $ 17,717, and interest of $ 319. There are no special projects plann ed for this district.
Based on the five -year budget projections included in the Engineer’s Report, the Creekside at Cordelia district reserve cash balance is projected to be nearly depleted by the end of FY 2027 - 2028. Staff will return to council with options for a Proposition 218 balloting process to increase assessment rates in the district. Pending the balloting process, services may be reduced in FY 2028-2029 to a level that can be supported with available revenues.
LLMD No. 17 – Chadbourne-Beck-Cordelia:
Landscaping and lighting maintenance services in the commercial area between Chadbourne Road, Beck Avenue, and Cordelia Road have been provided by LLMD No. 17 – Chadbourne-Beck- Cordelia (CBC) since 2003.
The total FY 2026-2027 assessment levy for the Chadbourne-Beck-Cordelia district is proposed at $322,274, which is a 5% increase from the total FY 2025 -2026 assessment levy of $306,927.
Assessment rates for each parcel vary depending on parcel size and are below the maximum allowable rate for each parcel established in 2003. All maximum rates are adjusted each year by the October SF -Oakland-Hayward All Urban Consumers CPI. The Bureau of Labor Statistics was unable to collect the October 2025 reference period survey data due to the 2025 federal government shut down. The August 2025 CPI was used to calculate the FY 2026 -2027 maximum assessment rates.
The budget for this district includes operations, maintenance, administration. The total proposed revenue for this district is $3 58,976, which includes assessments of $ 322,274, a General Fund contribution of $30,252, and interest of $ 6,451. There are no special projects plann ed for this district.
Based on the five-year budget projections included in the Engineer’s Report, the CBC district will require assessment levies to be increased approximately 9% each year to provide all required services and achieve the appropriate cash (65%) and repair (25%) reserve balances as described in Resolution No. 1991-213b.
LLMD No. 18 – Gold Ridge Park:
Landscaping and lighting maintenance services at the Gary Falati Park (also known as the Gold Ridge Park) have been provided by LLMD No. 18 – Gold Ridge Park since 2008.
The FY 202 6-2027 assessment levies for the Gold Ridge Park district are proposed to increase from the FY 202 5-2026 rates as shown in Section 4 of the proposed Engineer’s Report. The proposed assessment levies do not exceed maximum rates adopted by the district. All maximum assessment rates are adjusted each year by the October SF -Oakland-Hayward All Urban Consumers CPI. The Bureau of Labor Statistics was unable to collect the October 2025 reference period survey data due to th e 2025 federal government shut down. The August 2025 CPI was used to calculate the FY 2026-2027 maximum assessment rates.
The budget includes operations, maintenance, and administration. The total proposed revenue for this district is $131,784, which includes assessments of $96,606, a General Fund contribution of $30,392, and interest of $4,786. There are no special projects planned for this district.
Based on the five -year budget projections included in the Engineer’s Report, the assessment levies for the Gold Ridge Park district will remain the same each year through FY 2030-2031. The district will continue to supplement revenue with the existing fund balance reserves to achieve the appropriate cash (65%) and repair (25%) reserve balances as described in Resolution No. 1991-213b.
LLMD No. 19 – Corporate Commons:
Landscaping and lighting maintenance services in the area near Suisun Valley Road and Business Center Drive have been provided by LLMD No. 19 – Corporate Commons since 2003.
The total FY 202 6-2027 assessment levy for the Corporate Commons district is proposed at $146,271, which is a 15% increase from the total FY 2025 -2026 assessment levy of $127,192.
Assessment rates for each parcel vary depending on parcel size and are below the maximum allowable rate for each parcel established in 2010.
The budget for this district includes operations, maintenance, and administration. The total proposed revenue for this district is $162,375, which includes assessments of $146,271, a General Fund Contribution of $14,388, and interest of $1,716. There are no special projects planned for this district.
Based on the five -year budget projections included in the Engineer’s Report, the Corporate Commons district will require an average annual increase of 18% to the assessments levied each year to provide all required services and achieve the appropriate cash (65%) and repair (25%) reserve balances as described in Resolution No. 1991-213b.
LLMD No. 2023-1 (Gateway):
Landscaping and lighting maintenance services in the Solano Mall and surrounding commercial area have been provided by LLMD No. 2023-1 (Gateway) since 2023. This district was established to replace LLMD No. 1 – Gateway.
The total FY 202 6-2027 assessment levy for the new Gateway district is proposed at $3 55,169, which is an approximate 2% increase from the total FY 2025-2026 assessment levy of $349,059.
Assessment rates for each parcel vary depending on multiple factors as described in Sections 2 - 6 of the proposed Engineer’s Report and are below the maximum allowable rates established in 2023. All maximum assessment rates are adjusted each year by the February SF -Oakland- Hayward All Urban Consumers CPI, not to exceed 3%.
The budget for this district includes operations, maintenance, and administration. The total proposed revenue for this district is $466,335, which includes assessments of $355,169, a General Fund contribution of $107,649, and interest of $3,517. There are no special projects planned for this district.
Based on the five -year budget projections included in the Engineer’s Report, the new Gateway district will require an average annual increase of 3% to the assessments levied through FY 2029- 2030 to provide all required services and achie ve the appropriate cash (65%) and repair (25%) reserve balances as described in Resolution No. 1991 -213b. The reserve for landscaping is projected to be reached by the end of FY 2029-2030 which will result in reduced assessments in FY 2030-2031.
LLMD No. 2023-11 (Paradise Valley):
Landscaping and lighting maintenance services in the Paradise Valley area have been provided by LLMD No. 2023-11 (Paradise Valley) since 2023. This district was established to replace LLMD No. 11 – Paradise Valley North.
The tot al FY 202 6-2027 assessment levy for the new Paradise Valley district is proposed at $583,371, which is an approximate 2.1% increase from the total FY 202 5-2026 assessment levy of $571,332. Assessment rates for each parcel vary depending on multiple factors as described in Sections 2-6 of the proposed Engineer’s Report and are below the maximum allowable rates established in 2023. All maximum assessment rates are adjusted each year by the February SF - Oakland-Hayward All Urban Consumers CPI, not to exceed 3%.
The budget for this district includes operations, maintenance, and administration. The total proposed revenue for this district is $795,963, which includes assessments of $583,371, a General Fund contribution of $208,794, and interest of $3,799. There are no special projects planned for this district.
The budget for water services is expected to increase from $75,000 - $92,000 as budgeted in previous years to $189,100 as budgeted in FY 2026-2027 due to the new water rates adopted in 2025 and the activation of 10 water meters that were previously not billed to the district. As part of PUMP, the FMU conducted a comprehensive water rate study which identified a number of water meters that were previously not billed to the individual or entity receiving the services.
The necessary billing updates are anticipated to be completed by the end of FY 2025-2026.
Based on the five -year budget projections included in the Engineer’s Report, the new Paradise Valley district will require an average annual increase of 3 % to the assessments levied through FY 2030-2031 to provide all required services and contribute to the cash reserve balance. Due to the increased budget for water services, no contributions for landscaping reserves and reduced contributions for tree maintenance reserves are expected through FY 2030-2031.
FINANCIAL IMPACT
The total proposed FY 202 6-2027 revenue for all 18 LLMDs is $ 6,220,949, which includes assessments of $5,157,527, General Fund (Fund 101) contributions of $ 1,012,704, and interest of $50,718. The City’s General Fund contributions cover general administrative overhead (cost allocation), a portion of the costs for street lighting, arterial landscaping, and irrigation, which has been determined to be a general public benefit rather than a special benefit to the district property owners.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
If the council has any questions regarding the adoption of these resolutions, this item may be rescheduled until the next council meeting to allow staff time to provide the necessary supporting documentation.
COORDINATED WITH
Finance Department
STAFF CONTACT
Chris Lewis, Sr. Management Analyst
(707) 428-7089
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution - LLMD No. 1 - Gateway Attachment 3: Proposed Engineer's Report - LLMD No. 1 - Gateway Attachment 4: Proposed Resolution - LMD No. 3 - Waterman Highlands Attachment 5: Proposed Engineer's Report - LMD No. 3 - Waterman Highlands Attachment 6: Proposed Resolution- LLMD. No. 5- Smith Ranch Attachment 7: Proposed Engineer's Report - LLMD No. 5 - Smith Ranch Attachment 8: Proposed Resolution - LMD No. 6 - Peppertree Attachment 9: Proposed Engineer's Report - LMD No. 6 - Peppertree Attachment 10: Proposed Resolution - LLMD No. 7 - Rolling Hills Attachment 11: Proposed Engineer's Report - LLMD No. 7 - Rolling Hills Attachment 12: Proposed Resolution - LLMD No. 8 - Kolob Estates Attachment 13: Proposed Engineer's Report - LLMD No. 8 - Kolob Estates Attachment 14: Proposed Resolution - LLMD No. 10 - Southbrook Attachment 15: Proposed Engineer's Report - LLMD No. 10 - Southbrook Attachment 16: Proposed Resolution - LLMD No. 11 - Paradise Valley North Attachment 17: Proposed Engineer's Report - LLMD No. 11 - Paradise Valley North Attachment 18: Proposed Resolution - LLMD No. 12 - Downtown Business District Attachment 19: Proposed Engineer's Report - LLMD No. 12 - Downtown Business District Attachment 20: Proposed Resolution - LLMD No. 13 - Green Valley Attachment 21: Proposed Engineer's Report - LLMD No. 13 - Green Valley Attachment 22: Proposed Resolution - LLMD No. 14 -Woodlake Attachment 23: Proposed Engineer's Report - LLMD No. 14 - Woodlake Attachment 24: Proposed Resolution - LLMD No. 15 - Gold Ridge Attachment 25: Proposed Engineer's Report - LLMD No. 15 - Gold Ridge Attachment 26: Proposed Resolution - LLMD No. 16 - Creekside at Cordelia Attachment 27: Proposed Engineer's Report - LLMD No. 16 - Creekside at Cordelia Attachment 28: Proposed Resolution - LLMD No. 17 – CBC
Attachment 29: Proposed Engineer's Report - LLMD No. 17 - CBC Attachment 30: Proposed Resolution - LLMD No. 18 - Gold Ridge Park Attachment 31: Proposed Engineer's Report - LLMD No. 18 - Gold Ridge Park Attachment 32: Proposed Resolution - LLMD No. 19 - Corporate Commons Attachment 33: Proposed Engineer's Report - LLMD No. 19 - Corporate Commons Attachment 34: Proposed Resolution - LLMD No. 2023-1 (Gateway) Attachment 35: Proposed Engineer's Report - LLMD No. 2023-1 (Gateway) Attachment 36: Proposed Resolution - LLMD No. 2023-11 (Paradise Valley) Attachment 37: Proposed Engineer's Report - LLMD No. 2023-11 (Paradise Valley)