CITY OF MENIFEE
SUBJECT: Annual Levy for Landscaping and Lighting Maintenance District No. 89-1-C for Fiscal Year 2025/2026
MEETING DATE: July 16, 2025
TO: Mayor and City Council
PREPARED BY: Lauri Lockwood, Financial Analyst
REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION
1. Adopt a resolution ordering the levy and collection of assessments within the Landscaping and Lighting Maintenance District No. 89-1-C (LLMD 89-1-C) for Fiscal Year (FY) 2025/2026.
DISCUSSION
An Engineer’s Report has been prepared to determine the costs to provide landscape, lighting, and maintenance services, and the corresponding assessments, for LLMD No. 89-1-C for FY 2025/2026. The proposed adjusted assessment rates are shown in the attached Assessment Schedule.
The process for implementing the adjusted rates commenced on June 4, 2025, when the City Council adopted Resolution of Intention No. 25-1581. The matter now before the City Council is the next and final step in the process – the public hearing and consideration of a resolution ordering the levy and collection of the proposed LLMD assessments in the upcoming fiscal year.
The public hearing notice was published July 2, 2025, in the Press-Enterprise newspaper to ensure the public would be advised of the assessments and the City Council’s upcoming consideration of the matter. In addition, and as required by the Landscaping and Lighting Act of 1972, the proposed resolution can only be acted on after conducting a public hearing.
Adoption of the attached resolution would confirm the assessments to be levied as indicated in the Engineer’s Report for FY 2025/2026 for LLMD 89-1-C and orders the placement of the annual assessments on the County’s Assessment Roll.
Two Zones within LLMD 89-1-C have had budgeted expenses that exceed budgeted revenues for FY 2025/2026: Zone 3 and Zone 38.
City of Menifee Staff Report
LLMD public hearing
July 16, 2025
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While the assessment for most zones within LLMD 89-1-C adjusts annually at a rate equal to the greater of the change in the Consumer Price Index (CPI) or 2%, Zone 3 does not have the ability to increase rates. That Zone is the largest in the City, covering 3,548 parcels on the west side of Menifee. It includes more than 1,620 mature trees and has more water-intensive landscape and older irrigation fixtures. The water budget for Zone 3 represents 80% of the total special assessments levied. Staff has recommended a turf conversion project be included in the City’s Capital Improvement Program, with a goal of reducing water use and associated expense within Zone 3. For now, to maintain the landscaping and ensure trees are trimmed when necessary for safety, the approved budget for the General Fund contributes $100,000 in FY 2025/2026 to balance the budget for Zone 3.
Zone 38 is composed of 239 parcels and is responsible for the maintenance of landscaping, trails, fencing and bioswale improvements. While a CPI-based tax increase is scheduled for this year, Zone 38 continues to operate within a constrained budget. In order to balance the proposed budget, the General Fund will contribute $35,000 in FY 2025/2026 to pay for the necessary trimming of more than 270 trees.
STRATEGIC PLAN OBJECTIVE
Regular City Business
FISCAL IMPACT
Adoption of the attached resolution would allow the City of Menifee to collect approximately $907,860, which would allow for the maintenance of the parcels within this Landscaping and Lighting Maintenance District. Additionally, there would be a cost of $135,000 to the General Fund for Zone 3 and Zone 38, which is already accounted for within the approved FY 2025/2026 budget.
LLMD No. 89-1-C is being levied at the maximum eligible assessment rate and all available fund balances for zones requiring a General Fund transfer have been used.
ATTACHMENTS
1. Resolution
2. Assessment Schedule
3. Final Engineer’s Report – LLMD 89-1-C, Vol. 1
4. Final Engineer’s Report – LLMD 89-1-C, Vol. 2