CITY OF MENIFEE
SUBJECT: Intention to set a Public Hearing and Proceedings for the Landscape and Lighting Maintenance District 89-1-C Levy and Collection of Assessments for Fiscal Year 2026/2027 MEETING DATE: May 20, 2026
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 initiating proceedings for the levy and collection of assessments for Landscape and Lighting Maintenance District No. 89-1 (LMD No. 89-1-C or District) for Fiscal Year 2026/2027; and
2. Adopt a resolution for approval of the annual Engineer’s Report regarding the proposed levy and collection of assessments for LMD No. 89-1-C for Fiscal Year 2026/2027; and
3. Adopt a resolution declaring the City’s intention to levy and collect assessments for LMD No. 89-1-C for Fiscal Year 2026/2027 and setting the date of a public hearing on that matter for July 15, 2026.
DISCUSSION
Pursuant to the Landscape and Lighting Act of 1972 (Streets & Highways Code section 22500 et seq.) and Article XIII D of the Constitution of the State of California, all parcels that have a special benefit conferred upon them as a result of the maintenance and operation of improvements shall be identified, and the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entire cost of the maintenance and operation of improvements.
Only parcels that receive special benefits are assessed a special tax, and each parcel is assessed in proportion to the estimated benefit received.
LMD No. 89-1-C maintains and services 23 separate zones of benefit (composed of 53 locations) and 18 street lighting zones of benefit as described in the attached Engineer’s Report. The primary improvements provided within the District may include maintenance and servicing of landscape, multi-purpose trails, fencing, coordination of irrigation schedules, backflow devices and fossil filter
City of Menifee Staff Report
Intent to set a Public Hearing for LMD 89-1-C Levy and Collection of Assessments for FY26/27 May 20, 2026
3 3
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improvements within public right-of-way, and electricity for streetlights. Services provided include maintenance and administration required to keep the improvements in satisfactory condition.
The budgeted expenses for Zone 3 within LMD No. 89-1-C exceed budgeted revenues this year.
While the assessment for most zones within the District adjust 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. This 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 this zone represents 80% of the special assessments levied. Staff recommended that a turf conversion project be included in the City’s Capital Improvement Program, with a goal of reducing water use and associated expense within this zone. For now, to maintain the landscaping and ensure trees are trimmed when necessary for safety, the General Fund would contribute just under $100,000 in FY 2026/2027 to balance the budget for this zone.
With the exception of Zone 3, the revenues for zones within LMD No. 89-1-C are proposed to increase for FY 2026/2027 by 3.08%, which is the change in the CPI for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical area. The annual proposed tax levy for all zones within the District for FY 2026/2027 totals $920,593.
The City Council is required to approve an Engineer’s Report each year before placing the levy on the tax rolls. Failure to place the levy on the tax rolls would require decreasing service levels, up to and including the closure or abandonment of LMD No. 89-1-C itself.
STRATEGIC PLAN OBJECTIVE
Regular City Business
FISCAL IMPACT
Adoption of the attached resolutions would allow the City of Menifee to collect approximately $920,593 in special taxes for the maintenance of the parcels within LMD No. 89-1-C. Additionally, there is a forecasted a cost of approximately $100,000 to the General Fund for Zone 3, which is already accounted for within the proposed FY 2026/2027 budget. LMD 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. Engineer’s Report LMD 89-1-C Volume 1
2. Engineer’s Report LMD 89-1-C Volume 2
3. Resolution Initiating Proceedings
4. Resolution Approving Engineer’s Report
5. Resolution Declaring Intention