Annual Engineer's Report
Fiscal Year 20 25/2 6
Prepared For
May 2025
Moreno Valley Community Services District
Lighting Maintenance District No. 2014 -01
W.O. No. 24-0049 (201401/default)
ENGINEER’S REPORT
FOR THE ANNUAL LEVY
FOR FISCAL YEAR 2025/26
MORENO VALLEY COMMUNITY SERVICES DISTRICT
COUNTY OF RIVERSIDE
STATE OF CALIFORNIA
LIGHTING MAINTENANCE DISTRICT NO. 2014-01
Approved by the Board of Directors of the Moreno Valley Community Services District on the day of , 2025.
Secretary of the Board of Directors
Table of Contents
- TOC 1 -
Engineer’s Report _________________________________ ___________________________________ i
Sections
Section 1. Plans and Specifications __________________________ ________________________ 1 Section 2. Method of Apportionment ________________________________________________ 2 Section 3. Estimate of Improvement Costs ____________________________________________ 7 Section 4. District Diagrams _______________________________________________________ 10 Section 5. Assessment Roll ___________________________________ ____________________ 14
Tables
Table 3-1. FY 2025/26 Budget _________________________________ _____________________ 8 Table 3-2. FY 2025/26 Assessment Rates _______________________ ______________________ 9
Diagrams
Diagram 4-1. Zone 01 ______________________________________________________________ 11 Diagram 4-2. Zone 02 ______________________________________________________________ 12 Diagram 4-3. Zone 03 ______________________________________________________________ 13
Engineer’s Report for FY 2025/26
Moreno Valley Community Services District Lighting Maintenance District No. 2014-01 i
AGENCY: MORENO VALLEY COMMUNITY SERVICES DISTRICT,
RIVERSIDE COUNTY, CALIFORNIA
PROJECT: ANNUAL ENGINEER'S REPORT STATEMENT
DISTRICT : LIGHTING MAINTENANCE DISTRICT NO. 2014-01
TO: THE MORENO VALLEY COMMUNITY SERVICES DISTRICT BOAR D OF DIRECTORS
I, Matthew E. Webb, a Professional Civil Engineer ( employed by Albert A. Webb Associates and retained through an agreement between my employer and Webb Municipal Finance, LLC), acting on behalf of the Moreno Valley Community Services District (the "CSD"), pur suant to the Landscaping and Lighting Act of 1972 ( California Streets and Highways Code Section 22500 et seq. ) (the "1972 Act"), do hereby submit the following:
Each fiscal year, an Engineer's Report ("Report") is prepared and presented to the CSD Board of Directors (the "Board") describing the CSD’s Lighting Maintenance District No. 2014-01 (the "District"), any changes to the District or improvements, an estimate of the costs of the maintenance, operations, and servicing of th e improvements, and the proposed budget and assessments for that fiscal year.
This is the detailed Report for Fiscal Year (FY) 20 25/26 regarding the District and the proposed assessments to be levied on the properties therein to provide ongoing funding for the costs and expenses required to service and maintain lighting improvements assoc iated with and resulting from development of proper ties within the District, in accordance with the proport ional special benefits the properties receive from the improvements. The CSD requested Webb Municipal Finance, LLC to prepare and file the Report for the referenced fiscal year.
A public hearing is held each year before the Board to allow the public an opportunity to hear and be heard regarding the District. After reviewing the Report and considering all public comments and written protests presented at the hearing, the Board may approve the report as submitted or with amendments and can ado pt a resolution confirming the assessment. The adoption of such a resolution constitutes the levy of the as sessment and authorizes the CSD to submit levy information t o the Riverside County Auditor/Controller for colle ction on the tax roll.
In November 1996, the voters of California adopted Proposition 218 (the "Right to Vote on Taxes Act"), which has been codified as Articles XIII C and XIII D of the California Constitution. If, in any year, the proposed annual assessments for the District exceed the maxi mum assessments previously approved in a Propositio n 218 proceeding, such an assessment would be considered a new or increased assessment and be subject to a m ailed property owner protest ballot proceeding.
This Report and the information contained herein re flect the proposed budget for each of the various services provided by the District and the rates and assessments applicable to those services as they existed at the time of the passage of the Resolution of Intention. Reference is hereby made to the Riverside County A ssessor’s maps for a detailed description of the lines and di mensions of the parcels within the District. The un dersigned respectfully submits the enclosed Report as directed by the Board of Directors of the Moreno Valley Co mmunity Services District. Please note that Albert A. Webb Associates provides engineering advice and related consulting services. Albert A. Webb Associates is not a regist ered municipal advisor and does not participate in municipal advisory activities, and nothing in this Engineer’s Report is, or should be interpreted to be, municip al advisory services or advice.
Engineer’s Report for FY 2025/26
Moreno Valley Community Services District Lighting Maintenance District No. 2014-01 ii
Executed this ________ day of ____________________ 2025.
ALBERT A. WEBB ASSOCIATES
MATTHEW E. WEBB
PROFESSIONAL CIVIL ENGINEER NO. 37385
ENGINEER OF WORK
ON BEHALF OF THE CITY OF MORENO VALLEY AND
THE MORENO VALLEY COMMUNITY SERVICES DISTRICT
STATE OF CALIFORNIA
Final approval, confirmation and levy of the annual assessments and all matters in the Engineer's Repo rt were made on the ________ day of ____________________ 2025, by adoption of Resolution No.__________________ by the Board of Directors.
CITY CLERK
SECRETARY, MORENO VALLEY COMMUNITY SERVICES DISTRICT
CITY OF MORENO VALLEY
STATE OF CALIFORNIA
A copy of the Preliminary Assessment Roll and Engin eer's Annual Levy Report were filed in the office o f the City Clerk on the ________ day of ____________________ 2025.
CITY CLERK
SECRETARY, MORENO VALLEY COMMUNITY SERVICES DISTRICT
CITY OF MORENO VALLEY
STATE OF CALIFORNIA
Engineer’s Report for FY 2025/26
Moreno Valley Community Services District Lighting Maintenance District No. 2014-01 iii
Engineer’s Report for FY 2025/26
Moreno Valley Community Services District Lighting Maintenance District No. 2014-01 iv
INTRODUCTION
The Moreno Valley Community Services District (CSD) was established pursuant to the Community Services District Law (California Government Code Section 61000 et seq.) (the "CSD Law") in 1984 at the time of the incorporation of the City of Moreno Valley (the "City"). The CSD is a dependent special district of the City, and the Moreno Valley City Council serves as the Board of Directors of th e CSD. The boundaries of the CSD are the same as th ose of the City.
Prior to the City’s incorporation, the territory th at would become the City of Moreno Valley was uninc orporated territory in Riverside County. The County had creat ed County Service Areas (CSA's) to fund and provide certain enhanced services in this territory. The CSD was created so that responsibility for these funding mechanisms (and services) within the territory of the City could be transitioned from CSA's governed by the Riverside County Board of Supervisors to a CSD governed by the Moreno Valley City Council.
The CSD was historically comprised of a number of Zones, each of which provided a specific set of services within a defined portion of the City. Upon establishment of the CSD, Zone B of the CSD provided residential street lighting in certain residential subdivisions. These street l ighting services were funded through a charge on th e annual property tax roll to parcels served by the street lighting.
With the passage of Proposition 218, a number of substantive and procedural requirements were placed on taxes, assessments, and property-related fees imposed by l ocal governments in California. Although referred t o by the CSD as "charges", the charges imposed by Zone B of the CSD were categorized under Proposition 218 as r eal property assessments.
Street lighting is a maintenance and operation expe nse for sidewalks and streets. Consequently, the Zo ne B charges imposed prior to November 5, 1996 were authorized under Article XIII D, Section 5(a) of the Constitution, which permitted the continuation of assessments existing prior to the effective date of Proposition 218 so long as those assessments were imposed exclusively to finance the capital costs or maintenance and operation expenses for sidewalks, streets, sewers, water, flood contro l, drainage systems or vector control. Consequently , upon the effective date of Proposition 218, these Zone B cha rges continued to be levied annually by the CSD wit hout requiring additional property owner approval.
Subsequent to the adoption of Proposition 218, territories (and associated streetlights) were added to CSD Zone B. When this occurred, the CSD conducted a mail bal lot assessment proceeding with respect to the levy of the Zone B charges as required by Article XIII D, Secti on 4(e) of the Constitution. Beginning in December 1999, the CSD’s practice when balloting for Zone B charges in new territory was generally to present the charge with an incorporated automatic inflation adjustment. This was not done for the previously approved territory nor for much of the territory added to Zone B between November 1 996 and December 1999. Therefore, in some parts of CSD Zone B the charge was imposed annually at a level r ate, whereas in other parts of Zone B the maximum c harge was increased each year based on inflation.
In May 2014, the CSD formed the District pursuant t o the 1972 Act. The District was intended to replac e and assume the functions of CSD Zone B. Parcels that ha d been charged an annual Zone B charge for street l ighting services are instead assessed an annual assessment for those services as part of Lighting Maintenance District No. 2014-01. This transition did not increase the amount paid annually by any property owner and did not change the nature or extent of the street lighting services pr ovided. The assessments levied in connection with t he assessment district in every way serve as a continuation of the charges levied in connection with Zone B.
The improvements, the method of apportionment, and the special benefit assessments described in this R eport are based on the improvements and development of pr operties within the District and represent an estim ate of the direct expenditures and incidental expenses tha t will be necessary to maintain, service, and opera te such improvements for FY 2025/26. The improvements to be maintained in connection with the development of
Engineer’s Report for FY 2025/26
Moreno Valley Community Services District Lighting Maintenance District No. 2014-01 v
properties within the District and described herein are based on the development plans and specifications for the properties and developments in the District and by reference these plans and specifications are made part of this Report.
The word "parcel," for the purposes of this Report, refers to an individual property assigned its own Parcel Identification Number ("PIN") (formerly known as an "Assessor's Parcel Number" (APN)), by the Riverside County Assessor’s Office. The Riverside County Auditor/Controller uses PINs and a dedicated fund number established for the District to identify properties to be assessed on the tax roll and the allocation of the funds collected.
Engineer’s Report for FY 2025/26
Moreno Valley Community Services District Lighting Maintenance District No. 2014-01 vi
This Report consists of five (5) Sections:
SECTION 1 PLANS AND SPECIFICATIONS : Provides a description of the District boundaries and the improvements associated with the District. The District has thre e benefit Zones (hereafter referred to as "Zones"), which are described in more detail in thi s Section as well as in Section 2 (Method of Apportionment). A diagram showing the exterior boun daries of the CSD, the District, and the Zones established within the District, is attached and incorporated herein in Section 4 (District Diagrams). Available plans for the streetlight inst allations, including the City's current standard specifications, are on file with the Public Works Department. The location of each streetlight can be found by using the Moreno Valley Map Viewer located on the City’s website.
SECTION 2 METHOD OF APPORTIONMENT : Provides a discussion of the general and special b enefits associated with the overall street lighting improvements provided within the District (Proposition 218 Benefit Analysis). This Section also includes a determinati on of the proportional costs of the special benefits and a separation of costs considered to be of general benefit (and therefore not assessed). The method of calculating each property’ s proportional special benefit and annual assessment using a weighted benefit apportionment is outlined.
SECTION 3 ESTIMATE OF IMPROVEMENT COSTS : Provides an estimate of the annual funding required for the maintenance, servicing, and operation of street lig hting improvements within the District and specifically the costs associated with the improvem ents determined to be of special benefit to parcels within the District. The budget identifies an estimate of anticipated annual expenses to service, maintain, and operate existing street ligh ting improvements within the District for FY 2025/26 including, but not limited to, servicing of the streetlights and related facilities, energy costs, and related incidental expenses authorized by the 1972 Act and pursuant to the provisions of Proposition 218. The budget also identifies the maximum and proposed assessment rates for each Zone of the District and the associated assessment range formula (inflationary adjustment), as applicable.
SECTION 4 DISTRICT DIAGRAMS: Diagrams showing the boundaries of the District an d the Zones therein, including all parcels that receive special benefits from the improvements. Reference is hereby made to the Riverside County Assessor’s maps for a detailed description of the lines and dimensions of each lot and parcel of land within the District.
SECTION 5 ASSESSMENT ROLL : A listing of the proposed assessment amount for each parcel within the District.
The proposed assessment amount for each parcel is based on the parcel's calculated proportional special benefit as outlined in the method of apport ionment and proposed assessment rates established in the District Budget. These assessmen t amounts represent the assessments proposed to be levied and collected on the County Tax Rolls for FY 2025/26.
1. Plans and Specifications
Engineer’s Report for FY 2025/26
Moreno Valley Community Services District Lighting Maintenance District No. 2014-01 1 DESCRIPTION OF THE DISTRICT
The territory within the District consists of all l ots and parcels of land that receive special benefi ts from the streetlight improvements funded by the District ass essments. The boundaries of the District are compri sed of three benefit Zones. Parcels within the District are identified and grouped into one of the three designated Zones based on the special benefits properties receive fr om the District improvements and the authorized max imum assessments established. The three Zones within the District and the benefits associated with the prop erties therein are described in more detail in Section 2 (Method of Apportionment) of this Report. In addition, the District Diagram in Section 4 of the Report provides a visual representation of the District showing the boundaries of the District Zones.
DISTRICT FACILITIES AND IMPROVEMENTS
The streetlights funded by the District are primari ly low-intensity residential streetlights located w ithin the District, spaced approximately every 125 feet withi n a subdivision. Generally, high-intensity lights o utside the subdivisions are funded through other revenue sources and are not part of the District assessments.
Southern California Edison (SCE) provides electrici ty to the streetlights owned by the City and the Ci ty is responsible for providing maintenance and servicing of the light fixtures and poles. All of the City-o wned streetlights have been retrofitted to Light Emitting Diode (LED) fixtures. LED bulbs are more energy e fficient and are expected to have a longer life span than the high-pressure sodium vapor bulbs they replaced.
The maintenance, operation, and servicing of the District’s lighting improvements generally include the furnishing of labor, materials, equipment, and electricity for the ordinary and usual maintenance, operation, and servicing of streetlights within the public right-of-ways and easements dedicated to the City. These activities include, but are not limited to:
• Furnishing of electric current or other illuminating agent. • Maintenance, repair, and replacement of light poles and fixtures, including changing light bulbs, pain ting, photoelectric cell repair or replacement, and repai ring damage cause by accidents, vandalism, time, an d weather.
• Electrical conduit and pull-box repair and replacement due to damage by construction and weather. • Monitoring of the Underground Service Alert (USA) n etwork, identification of proposed excavation in th e vicinity of lighting electrical conduits and markin g the location of those underground conduits in the field to prevent damage by excavation.
• Service, maintenance, repair, and replacement inclu ding replacing worn out electrical components and repairing damage due to accidents, vandalism, and weather. • Periodic repair and rehabilitation of the street li ghting system including replacement of old equipmen t with new or reconditioned equipment; and repair, removal or replacement of related equipment as required including, but not limited to, lighting fixtures, p oles, meters, conduits, electrical cable, and reloc ation of streetlight facilities as necessary, including the purchase and installation of related equipment and facilities. • Streetlight inventory database, pole numbering, and mapping to establish the number of streetlights th at must be maintained, as well as the condition and lo cation of these streetlights as part of an effectiv e maintenance program.
• Responding to citizen inquiries regarding street lighting.
2. Method of Apportionment
Engineer’s Report for FY 2025/26
Moreno Valley Community Services District Lighting Maintenance District No. 2014-01 2 The 1972 Act permits the establishment of assessmen t districts by agencies for the purpose of providin g certain public improvements, including the acquisition, con struction, installation, and servicing of street li ghting improvements and related facilities. The 1972 Act r equires that the cost of these improvements be levi ed according to benefit rather than assessed value.
Section 22573 defines the net amount to be assessed as follows:
"The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements." Section 22574 provides for zones as follows:
"The diagram and assessment may classify various areas within an assessment district into different zones where, by reason of variations in the nature, location, and extent of the improvements, the various areas will receive differing degrees of benefit from the improvements. A zone shall consist of all territory which will receive substantially the same degree of benefit from the improvements." The formulas used for calculating assessments and t he designation of zones herein reflect the composit ion of parcels within the District and the improvements an d activities to be provided and have been designed to fairly apportion the cost of providing those improvements based on a determination of the proportional special benefits to each parcel, consistent with the requirements of the 1972 Act and the provisions of Proposition 218 and Article XIII D of the California Constitution.
PROPOSITION 218 BENEFIT ANALYSIS
The costs of the improvements for FY 2025/26 have been identified and allocated to properties within the District based on special benefit. The improvements provided by the District and for which properties are asses sed are public street lighting improvements. These improvem ents generally were installed in connection with th e development of the properties within the District and were required by the City as a condition of development.
Article XIII D Section 2(d) defines District as follows:
"District" means an area determined by an agency to contain all parcels which will receive a special benefit from a proposed public improvement or property-related service.
Article XIII D Section 2(i) defines Special Benefit as follows:
"Special benefit" means a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large. General enhancement of property value does not constitute "special benefit."
Article XIII D Section 4(a) defines proportional special benefit assessments as follows:
An agency which proposes to levy an assessment shall identify all parcels which will have a special benefit conferred upon them and upon which an assessment wi ll be imposed. The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the property related service being provided. No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.
2. Method of Apportionment
Engineer’s Report for FY 2025/26
Moreno Valley Community Services District Lighting Maintenance District No. 2014-01 3 BENEFIT ANALYSIS
Special Benefit
The street lighting in the District is primarily lo w-intensity street lighting that is useful for illu minating the sidewalks and parking lanes in the District. This lighting is distinct from the high-intensity lights installed on major streets which serve in part to enhance traffic safe ty. Residential streetlights are of lower intensity , but more closely spaced, than the high-intensity streetlights. These sorts of low-level, low-intensity resident ial streetlights provide three main special benefits: (i) residentia l security benefit, (ii) pedestrian safety benefit, and (iii) parkway/roadway egress benefit. Because traffic in the District is largely limited to local traffic co nsisting of residents and residents’ guests traveling to and from property within the District, it is reasonable to assume that essentially all pedestrians and parking vehicles in the lit areas will, after dark, be directly associ ated with an assessed dwelling unit.
With the exception of the development that comprise s Zone 03 (discussed below), the streetlights withi n the District are consistent with the City’s typical intensity and spacing standards for residential lighting at the time of development and each parcel to be assessed is served directly by the system of streetlights providing appropriate lighting within the subdivision. Consequently, we conclude that each residential parcel within the District receives substantially similar benefit from the improvements regardless of their location within the District. Furthermore, the cost of maintaining and operating each light is substantially the same, regardless of the location of the light within the District.
General Benefit
Approximately 5% of the streetlights funded by the District are located at the perimeter/entryway of a residential development. These perimeter/entryway lights, in contrast to the remainder of the lights funded by the District, arguably provide some illumination that extends bey ond the boundaries of the developments and parcels being assessed within the District, that enhances the saf ety of members of the public unassociated with an a ssessed parcel, that illuminates traffic or parking on majo r thoroughfares, or that otherwise provides service s to the general public. Although, in general, these streetl ights exist solely because of the development of as sessed parcels, and although the primary purpose of these lights is to provide illumination benefiting assess ed parcels, they may provide some level of general benefit in addition to the special benefits provided to the assessed parcels.
We estimate that this general benefit constitutes not more than 25% of the total benefit from perimeter/entryway lights. As 25% of the benefit from 5% of the lights constitutes not more than 2% of the total benefit from all improvements operated and maintained by the Distric t, we determine that the total general benefit from operation and maintenance activities will not exceed 2% of operations and maintenance costs.
2. Method of Apportionment
Engineer’s Report for FY 2025/26
Moreno Valley Community Services District Lighting Maintenance District No. 2014-01 4 ZONES OF BENEFIT
In an effort to ensure an appropriate allocation of the estimated annual cost to provide the District improvements based on proportional special benefits, this District was established with benefit Zones as authorized pursuant to Chapter 1 Article 4, Section 22574 of the 1972 Act:
"The diagram and assessment may classify various areas within an assessment district into different zones where, by reason of variations in the nature, location, and extent of the improvements, the various areas will receive differing degrees of benefit from the improvements. A zone shall consist of all territory which will receive substantially the same degree of benefit from the improvements." There are three Zones within the District. The bulk of the parcels in the District are located in eith er Zone 01 or Zone 02. These Zones are defined separately, largel y for administrative purpose, as the level of servi ce is substantially identical in the two Zones and the ra tio of the number of lights to the number of parcel s is substantially the same. Zone 01 consists of those p arcels that, as a result of Proposition 218, are su bject to an assessment that is not annually adjusted for inflation. Zone 02 consists of those parcels for which the assessment can be adjusted annually for inflation.
Zone 03 consists of 65 residential parcels located in Tract 21958. This tract is unique within the District because it was developed with a substantially lower streetligh t density (streetlights are spaced farther apart th an the residential streetlights typically found in the residential tracts of Zone 01 and Zone 02). As a result, the parcels in Tract 21958 generally receive less lighting than pa rcels elsewhere in the District, and the per parcel cost of providing streetlight special benefits to Tract 21958 parcels is substantially less than the cost of providing benefits elsewhere in the District.
For FY 2025/26:
• Zone 01 includes 32,818 parcels and has 7,080 streetlights. • Zone 02 includes 7,251 parcels and has 1,564 streetlights. • Zone 03 includes 65 parcels and has 3 streetlights.
The District budget, incorporated herein under Section 3 of this Report, provides a summary of the total estimated cost of providing the street lighting improvements and the allocation of those costs between the three Zones (which is based on the number of lights in each Zon e) as well as those costs that are considered gener al benefit.
Details regarding the location and extent of the st reet lighting improvements within the District and the Zones therein are on file in the Public Works Department, and by reference these documents are made part of this Report. A diagram showing the boundaries of the three Zones outlined above is attached and incorporated herein under Section 4 (District Diagrams) of this Report.
2. Method of Apportionment
Engineer’s Report for FY 2025/26
Moreno Valley Community Services District Lighting Maintenance District No. 2014-01 5 ASSESSMENT METHODOLOGY
The method of apportionment for this District calcu lates the receipt of special benefit from the respe ctive improvements based on the land use of the parcels.
Equivalent Benefit Unit Application
To proportionally allocate special benefit to each parcel, it is necessary to correlate each property’s proportional benefit to other properties that benefit from the improvements and services being funded. In order to do this, the assessment methodology assigns each parcel a number of Equivalent Benefit Units (EBUs) based on its la nd use.
One EBU is defined as the special benefit allocable to a single-family residential home. In each case, a parcel is only allocated EBUs in a fiscal year if the streetl ights serving the parcel (or serving the perimeter of the complex in the case of apartments, condominiums, etc.) has been accepted by the City or will be accepted by th e City during the upcoming fiscal year.
Not all parcels are assessed one EBU. EBUs are assi gned based on the benefit each parcel receives, usi ng the Assessment Methodology outlined below (e.g., Condos may be assigned an EBU less than one).
Single-Family Residential : This land use is defined as a fully subdivided single-family residential home site with or without a structure. This land use is assigned 1.0 EBU per lot or parcel.
Condominium Residential : This land use is defined as a fully subdivided condominium residential unit assigned its own PIN by the County. EBUs are assigned to these parcels by multiplying the overall acreage of the condominium development by 4 (the typical number of single-family homes in an acre of typical development), and then dividing the result by the number of condominium units/parcels in the development.
Multi-Family Residential and Mobile Home Parks : This land use classification identifies properties that are used for residential purposes and contain more than one residential unit per lot or parcel. The proportiona l special benefit and EBUs for these parcels is based on acreage, at 4.0 EBUs per acre.
Vacant Parcels : This land use classification identifies properties that are undeveloped and not fully subdivided but are served by a streetlight improvement. This land use is assigned 1.0 EBU per lot or parcel.
Approved Single-Family Residential : This land use is defined as a fully subdivided sin gle-family residential home site with or without a structure, but the streetlights to be installed as part of the development have not yet been installed and are not anticipated to come online th is fiscal year. Generally, these parcels were annex ed to the District in anticipation of the property being deve loped and streetlights being installed, but until s uch time that the streetlights are to be installed, these lots or parcels will not be assessed and are assigned 0.0 EBU.
Planned Residential Development : This land use is defined as a property that is cur rently considered vacant or undeveloped land that is to be subdivided into a kn own number of residential lots, but the streetlight s to be installed as part of the development have not yet been installed and are not anticipated to come online this fiscal year. Generally, these parcels were annexed to the District in anticipation of the property being deve loped and streetlights being installed, but that has not yet occurred. Until such time as the streetlights are t o be installed, these lots or parcels will not be assessed and are assigned 0.0 EBU.
Exempt : This classification means any lot or parcel that i s not considered to specially benefit directly from improvements. This classification includes, but is not limited to, areas of public streets, private st reets and other
2. Method of Apportionment
Engineer’s Report for FY 2025/26
Moreno Valley Community Services District Lighting Maintenance District No. 2014-01 6 roadways; public easements or right-of-ways includi ng landscaped parkways, easement, utility right-of- ways, or easements such as irrigation or drainage ditches, c hannels, or basins; and flood plains. These types o f parcels of land (similar to the improvements) are typically th e result of property development rather than the di rect cause of development and have little or no need for the i mprovements. These types of properties may or may n ot be assigned a PIN by the County.
Also exempt from assessment are lots that are identified as common areas (properties for which the surrounding residential parcels have a shared interest); bifurcated lots; and small parcels vacated by the County or similar sliver parcels that cannot be developed independent of an adjacent parcel. These types of parcels are general ly not separately assessed because they are functionally a part of another parcel that is assessed for its own benefit and the benefit of the associated parcel.
CALCULATION OF ASSESSMENTS
An assessment amount per EBU is calculated by:
Taking the "Total Annual Expenses" (total budgeted costs) and subtracting the proportional "General Be nefit Costs" which establishes the "Total Special Benefit Costs".
Total Amount Expenses - General Benefit Costs = Total Special Benefit Costs To the resulting "Total Special Benefit Costs", var ious "Other Available Funding" adjustments are appl ied. For further information please reference line items in the budget on the following page under "Other Avail able Funding."
These adjustments to the Total Special Benefit Costs result in the "Net Special Benefit Assessment".
Total Special Benefit Costs +/- Other Available Funding = Net Special Benefit Assessment The amount identified as the "Net Special Benefit A ssessment" is divided by the Total EBUs of parcels to be Assessed to establish the "Assessment Rate" or "Assessment per EBU" for the fiscal year. The Assessment Rate is then applied to each parcel's individual EBU to calculate the parcel's proportionate special benefit and assessment obligation for the improvements.
Net Special Benefit Assessment / Total EBU (to be Assessed) = Assessment per EBU
3. Estimate of Improvement Costs
Engineer’s Report for FY 2025/26
Moreno Valley Community Services District Lighting Maintenance District No. 2014-01 7 DISTRICT BUDGET
The budget outlines the estimated costs to maintain the improvements and the anticipated expenditures for FY 2025/26. Operation and Maintenance (O&M) costs were allocated amongst the Zones proportionately to the number of streetlights serving the Zones.
3. Estimate of Improvement Costs
Engineer’s Report for FY 2025/26
Moreno Valley Community Services District Lighting Maintenance District No. 2014-01 8 Table 3-1
FY 2025/26 Budget
Zone 01 Zone 02 Zone 03 Total
Annual Operating Expenses
Operations & Maintenance $132,146.73 $29,197.27 $56.00 161,400.00 Utilities $1,105,316.55 $244,215.08 $468.37 1,350,000.00 Total O&M Expenses $1,237,463.28 $273,412.35 $524.37 $1,511,400.00 Incidental/Administrative Expenses
District Administration $48,755.92 $10,772.42 $20.66 $59,549.00 County Fees $13,918.80 $3,075.30 $5.90 $17,000.00
Miscellaneous Administrative Expenses $409.38 $90.45 $0.17 $500.00 Total Incidental/Administrative Expenses $63,084.10 $13,938.17 $26.73 $77,049.00 Contribution to Fund Balance $0.00 $0.00 $0.00 $0.00
Total Annual Expenses $1,300,547.38 $287,350.52 $551.10 $1,588,449.00 General Benefit Costs ($26,011.78) ($5,747.20) ($11.02) ($31,770.00) Total Special Benefit Costs $1,274,535.60 $281,603.32 $540.08 $1,556,679.00 Other Available Funding
Use of Reserves a $0.00 $0.00 $0.00 $0.00
Additional Agency Contribution/Collection b ($359,511.90) $15,957.05 ($82.01) ($343,636.86) Other Revenue Sources c ($160,639.34) ($35,492.59) ($68.07) ($196,200.00) Total Contributions/Adjustments ($520,151.24) ($19,535.54) ($150.08) ($539,836.86) NET SPECIAL BENEFIT ASSESSMENT $754,384.36 $262,067.78 $390.00 $1,016,842.14 District Statistics
Total Parcels d 32,818 7,251 65 40,134
Total Assessed Parcels 32,709 7,192 65 39,966
Total EBUs 32,799 7,192 65 40,056
Proposed Assessment per EBU $23.00 $36.46 $6.00
Maximum Assessment per EBU $23.00 $36.46 $6.00
Reserve Fund/Fund Balance
$0.00 $0.00 $0.00 $0.00
$1,274,535.60 $281,603.32 $540.08 $1,556,679.00
$0.00 $0.00 $0.00 $0.00
($1,274,535. 60) ($281,603.32) ($540.08) ($1,556,679.00) Estimated Beginning Fund Balance as of July 1, 2025
Revenue and City Contributions
Contribution to/(Use of Reserve Funds)
Expenditures less General Benefit Costs
Estimated Ending Fund Balance as of June 30, 2026 $0.00 $0.00 $0.00 $0.00 Slight variances are due to rounding.
a There are no reserve funds available.
b The Additional Agency Contribution bridges the shortfall between the Special Benefit Costs and the Assessment that will be levied. This contribution is in addition to the General Benefit Costs. The Additional Agency Collection occurs when the Assessment that will be levied exceeds the Special Benefit Costs; though rare, when this occurs, the funds are added to Reserves for future use. c Includes property taxes and interest income.
d "Total Parcels" includes all assessable parcels, including parcels that will be served by lighting in the future and have a current EBU of zero. Note that all parcels that benefit from the services are assessed on the tax roll. Because the District exclusively includes the internal streets in residential subdivisions, there are no benefitting government-owned parcels in the District.
3. Estimate of Improvement Costs
Engineer’s Report for FY 2025/26
Moreno Valley Community Services District Lighting Maintenance District No. 2014-01 9 ASSESSMENT RATES
The following shows the assessment rates applicable to each Zone for FY 2025/26 based on the budget an d the method of apportionment presented in this Report.
Table 3-2
FY 2025/26 Assessment Rates
Zone Maximum Rates Applied Assessment Rates
Zone 01 $23.00 $23.00 per EBU
Zone 02 a $36.46 $36.46 per EBU
Zone 03 $6.00 $6.00 per EBU
a The Maximum Assessment Rate includes an inflation ary adjustment previously balloted and approved by the property owners.
Note that for FY 2025/26 there are:
• 32,799 EBUs in Zone 01 sharing $1,274,535.60 in proportional special benefit. • 7,192 EBUs in Zone 02 sharing $281,603.32 in proportional special benefit. • 65 EBUs in Zone 03 sharing $540.08 in proportional special benefit.
ANNUAL INFLATIONARY ADJUSTMENT (ASSESSMENT RANGE FORMULA) FOR ZONE 02 Each year, the Board of Directors considers whether the Annual Assessment per EBU should be set at the Maximum Assessment Rate, as previously approved by the property owners, or if a lower assessment rate per EBU should be applied based on the budgeted costs.
The Maximum Assessment Rate per EBU is calculated a nnually using the percentage change for the previou s calendar year in the All Urban Consumers Consumer Price Index, (CPI or "Index"), as published by the Department of Labor’s Bureau of Labor Statistics for the Los A ngeles-Long Beach-Anaheim Region
1. The inflation adjustment
from December 2023 to December 2024 is 3.42%.
1 In January 2018, the Bureau of Labor Statistics int roduced a new geographic area sample for the Consum er Price Index (CPI). Riverside, CA, which was previously included in the Los Angeles-Riverside-Orange County, CA MSA (Metropolitan Statistical Area), is now included in a separate CBSA (Core Based Statistical Area) and is named Riverside-San Bernar dino-Ontario; this Index started at 100.000. The Lo s Angeles-Riverside-Orange County, CA index was renamed "Los Angeles-Long Beach-Anaheim". Because the Index approved by the property owners was the Los Angeles-Riverside-Orange County index, and it was renamed and not eliminated, CSD General Counsel determined the District would continue to use the Los Angeles-Long Beach-Anaheim index.
4. District Diagrams
Engineer’s Report for FY 2025/26
Moreno Valley Community Services District Lighting Maintenance District No. 2014-01 10 DISTRICT DIAGRAMS
The following boundary maps depict the parcels within the three Zones that make up the District, which are those that existed at the time this Report was prepared. The combination of these maps and the Assessment Ro ll referenced by this Report constitute the Assessment Diagram for the District.
4. District Diagrams
Engineer’s Report for FY 2025/26
Moreno Valley Community Services District Lighting Maintenance District No. 2014-01 11 Diagram 4-1
4. District Diagrams
Engineer’s Report for FY 2025/26
Moreno Valley Community Services District Lighting Maintenance District No. 2014-01 12 Diagram 4-2
4. District Diagrams
Engineer’s Report for FY 2025/26
Moreno Valley Community Services District Lighting Maintenance District No. 2014-01 13 Diagram 4-3
5. Assessment Roll
Engineer’s Report for FY 2025/26
Moreno Valley Community Services District Lighting Maintenance District No. 2014-01 14 ASSESSMENT ROLL
The PIN for each lot or parcel within the District is based on available parcel maps and property data from the Riverside County Assessor’s Office. A listing of th e parcels to be assessed within this District, alon g with the corresponding assessment amounts to be levied for FY 2025/26 has been provided electronically to the Secretary of the CSD Board (City Clerk). The listing is incorporated herein by reference. The Report can also be found online at the City’s website at www.moval.org/sd . If any PIN identified therein is submitted for collection and identified by the County Auditor/Controller of the County of R iverside to be an invalid parcel number for any fis cal year, a corrected PIN and/or new PIN(s) will be identified and resubmitted to the County Auditor/Controller. T he assessment amount to be levied and collected for the resubmitted parcel or parcels shall be based on the method of apportionment, as described in this Report and as approved by the CSD Board.
3788 McCray St.
Riverside, CA 92506
951.200.8600
www.webbmfinance.com