Report to City Council
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TO: Mayor and City Council Acting in its Capacity as
President and Members of the Board of Directors of
the Moreno Valley Community Services District (CSD)
FROM: Felicia London, Chief Financial Officer/City Treasurer
AGENDA DATE: March 17, 2026
TITLE: ADOPT RESOLUTIONS TO INITIATE PROCEEDINGS
TO LEVY ASSESSMENTS IN FISCAL YEAR 2026/27
FOR MORENO VALLEY COMMUNITY SERVICES
DISTRICT LIGHTING MAINTENANCE DISTRICT NO.
2014-01 (REPORT OF: FINANCIAL AND
MANAGEMENT SERVICES) (DISTRICT: ALL
DISTRICTS)
TITLE SUMMARY: Resolutions to Initiate Proceedings to Levy FY 2026/27 Assessments for LMD 2014 -01 (Reso. Nos. CSD 2026 -__,
CSD 2026-__, and CSD 2026-__)
DISTRICT: All Districts
Recommendation(s)
That the CSD:
1. Adopt Resolution No. CSD 2026 -__, a Resolution of the Board for the Moreno Valley Community Services District of the City of Moreno Valley, California, Initiating Proceedings to Levy Fiscal Year 2026/27 Assessments against Real Property in Moreno Valley Community Services District Lighting Maintenance District No. 2014-01;
2. Adopt Resolution No. CSD 2026-__, a Resolution of the Board for the Moreno Valley Community Services District of the City of Moreno Valley, California, Approving an Engineer's Report in Connection with Fiscal Year 2026/27 Assessments against Real
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Property in Moreno Valley Community Services District Lighting Maintenance District No. 2014-01; and
3. Adopt Resolution No. CSD 2026 -__, a Resolution of the Board for the Moreno Valley Community Services District of the City of Moreno Valley, California, Declaring its Intention to Levy Fiscal Year 2026/27 Assessments against Real Property in Moreno Valley Community Services District Lighting Maintenance District No. 2014-01.
SUMMARY
This report recommends adoption of three resolutions (Attachments 1, 2, and 3), which will initiate the annual process to continue the levy of special assessments on the fiscal year (FY) 2026/27 property tax roll for Moreno Valley Community Services District (“CSD”) Lighting Maintenance District (LMD) No. 2014-01. If adopted, the resolutions will 1) initiate proceedings to levy the annual assessments, 2) approve the assessment engineer’s report for the district, and 3) declare the intent to levy assessments for FY 2026/27 and set May 19, 2026, the date of the Public Hearing. This is a routine pro cess that is required each year.
The proposed assessments are a continuation of the real property assessments currently levied on the property tax roll. There are no increases proposed to the assessments other than an annual inflationary adjustment, provided the property owners previously approved such adjustment. Revenue received from the assessments partially funds the street lighting services provided by the district.
On February 24, 2026, the Finance Subcommittee was scheduled to be notified of the annual inflationary adjustment review process. If applicable, an adjustment will be applied to the maximum assessment rates, if previously approved by the property owners.
DISCUSSION
On May 27, 2014, the CSD adopted its Resolution No. CSD 2014 -08, establishing LMD No. 2014 -01 (“District”) (formerly Zone B, residential street lighting) under the Landscaping and Lighting Act of 1972 (the “1972 Act”). Property owners of parcels within the District pay a special assessment as part of their annual property t ax bill. Revenue received from the assessment funds a majority of the Special Benefit cost, as defined in the Assessment Engineer’s Report (“Report”) (Attachment 4), to maintain, service, and operate street lights located within the District.
Parcels within the District are grouped into one of the three benefit zones based on the Special Benefit the property receives from the District improvements. Most of the parcels are located in either Zone 01 or Zone 02 which are separated for administrative purposes.
The parcels in Zone 01 are not subject to an annual inflationary adjustment, whereas the parcels in Zone 02 are subject to an annual inflationary adjustment based on the Consumer Price Index. The level of service is substantially identical in the two zones and the ratio of the number of lights to the number of parcels is substantially the same.
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Zone 03 includes the 65 residential parcels in Tract 21958 (immediately north of SR 60, east of Nason Street, west of Oliver Street). This tract was developed with a substantially lower street light density (i.e. street lights are spaced farther apart than those found in Zone 01 and Zone 02). As a result, the cost to provide the Special Benefit to the parcels in Tract 21958 is significantly less than the cost of providing the street lighting elsewhere in the District. Therefore, the assessment for parcels in Zone 03 is less than Zones 01 and 02.
The assessment cannot be levied on the property tax roll nor can an adjustment be made to the assessment unless the proper ty owners previously approved and the CSD Board authorizes such adjustment. The 1972 Act requires the CSD Board to initiate annual proceedings and conduct a Public Hearing to receive public input on the proposed levy, prior to authorizing such levy each ye ar. The 1972 Act also requires an annual review and evaluation of the District’s revenues and expenditures before assessments can continue to be levied on the property tax roll for the next fiscal year.
The Report includes a description of the improvemen ts within the District, the projected annual expenses, the method of assessment apportionment for each lot or parcel within the District boundaries, and a diagram showing the parcels within the zones that make up the District. The Report also provides an a nalysis of the District’s annual financial status. It separates and apportions the cost of Special Benefit of the street lighting services to the benefiting properties. The budget in the Report identifies, by zones, the number of parcels within the zones that can be assessed and the proposed assessments to levy on the FY 2026/27 property tax bills.
Costs considered to be of General Benefit, as defined in the Report, are not allowed to be assessed to properties and therefore are apportioned as a General Fu nd expense.
General Benefit refers to the benefit the general public receives from the street lighting improvements of the District. The projected special assessment revenue and other District revenues (e.g. interest, property taxes, etc.) are not sufficient to cover the full cost of the Special Benefit provided to the respective parcels. Therefore, the Report also identifies a projected budget shortfall. The City’s FY 2026/27 proposed Operating Budget includes a General Fund contribution necessary to cover this shortfall and to continue operation of the street lighting program.
Adoption of the proposed resolutions will 1) initiate proceedings for the annual levy of assessments for LMD No. 2014 -01, 2) approve the Report, and 3) declare the intent to levy assessments on the FY 2026/27 property tax roll and set 6:00 p.m. on May 19, 2026 as the date of the Public Hearing. After the close of the Public Hearing and provided there is not a majority protest, the CSD Board can consider authorizing the recommended assessments to levy on the FY 2026/27 property tax bill of parcels within LMD No. 2014-
01. Conflict of Interest Analysis
Section 18702.2 of the Fair Political Practices Commission (FPPC) Regulations provides that if a Council Member has a financial interest in a parcel of land (other than a leasehold
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interest) within any of the subject assessment districts, the Council Member must recuse him or herself from voting on any proposal that would impose, repeal, or modify any taxes, fees, or assessments that apply to the parcel owned by the Council Member. Although there is an exception, the City Attorney recommends that in the abu ndance of caution, that if any Council Member who owns real property within any of the districts affected by the recommended assessment, that they should consider recusing themselves. If necessary, the Rule of Necessity may be implemented in the event we lose a quorum to vote on any of the assessments. The Rule of Necessity allows the City Council to randomly select which Council Members are allowed to participate in the decision regarding the assessments even if they have a potential conflict of interes t based on property ownership within the respective district.
ALTERNATIVES
1. Adopt the proposed resolutions. Staff recommends this alternative as it is consistent with the 1972 Act and required to initiate the annual process to continue levying the annual assessments on the property tax roll to support the residential street lighting program for FY 2026/27.
2. Do not adopt the proposed resolutions. Staff does not recommend this alternative as it may prevent the City from levying the FY 2026/27 assessments and collecting funding to support the services of the District as requested by the property owners.
3. Do not adopt the proposed resolutions but rather continue the item to a future Council meeting. Staff does not recommend this alternative as it may prevent the City from meeting Riverside County’s deadline to include assessments on the FY 2026/27 property tax roll.
FISCAL IMPACT
Property owners pay the special assessment as part of their annual property tax bill. The assessment, including an inflationary adjustment to the maximum assessment where applicable, has been approved through prior proceedings. Funds received for the benefit of the District are restricted and can only be used to fund the services of the District. The recommended assessment rates for FY 2026/27 are listed in the table below. Parcel specific details of the proposed maximum and applied assessment are included in the Report as attached and are also available from the City Clerk’s office and accessible from the City’s Website (www.moval.org/sd).
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For FY 2026/27, the total projected expenditures for the District are $1,6 58,819.00. The property assessments are projected to generate $1,028,553.58 in revenue. Other revenue sources to the District (e.g. property tax revenues), and a contribution from the General Fund are programmed to fund the difference between the projected expenditures and assessment revenue.
The City’s FY 2026/27 Proposed Operating Budget includes a total General Fund contribution of $425,465.42. This includes the required General Benefit cost and a General Fund subsidy.
Third party costs associated with the annual levy approval process and preparation of the Report for LMD No. 2014-01 are projected not to exceed $5,000.00. Third party services include a consultant assessment engineer, special legal counsel, and publication of a legal notice. These co sts are included in the City’s FY 2026/27 proposed Operating Budget for LMD No. 2014-01 (Fund 5012).
NOTIFICATION
Posting of the agenda.
PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:
Zara Terrell Felicia London
Senior Management Analyst Chief Financial Officer/City Treasurer Zone # of EBUs1 Maximum Applied2 Maximum Applied2
Adjustment to
Maximum
Change in
Applied
Assessment
Revenue 5
Zone 013
32,881 $ 23.00 $ 23.00 $ 23.00 $ 23.00 0.00% $ - $ 756,270.36 Zone 024 7,243 $ 36.31 $ 36.46 $ 37.56 $ 37.56 3.01% $ 1.10 $ 271,893.22 Zone 033
65 $ 6.00 $ 6.00 $ 6.00 $ 6.00 0.00% $ - $ 390.00 Total Projected Assessment Revenue $ 1,028,553.58
LMD 2014-01 Assessment Rates
(Residential Street Lighting)
FY 2025/26 Proposed FY 2026/27
5 Total of proposed levy differs from calculation of EBUs and rate shown due to rounding. 1 Equivalent Benefit Units. An EBU is equivalent to a single-family residential (SFR) parcel. 2 Rounded down. Riverside County requires even numbered dollar amounts to be applied to the property tax roll. 3 Property owners have not approved an annual inflationary adjustment. 4 Property owner approved inflationary adjustment to max rate based on percentage change calculated for the prior year in the Los Angeles-Long Beach- Anaheim Regional Consumer Price Index, as published by the Department of Labor’s Bureau of Labor Statistics (index approved by property owners).
Type Description Amount
General Benefit Cost
As defined in the Report, represents costs which are not allowed to be assessed to properties and therefore, are apportioned to the General Fund.The General Benefit is the benefit the public receives from the public street lighting improvements in the District. 33,180.00$
Additional Agency
Contribution1
Funds the shortfall between revenues and expenditures to continue operating the street lighting program. 392,285.42$
425,465.42$
General Fund Costs
Total
1 Projected contribution included in proposed Operating Budget. The actual contribution may be lower than needed to cover expenses. In the event additional amounts are needed, a budget adjustment will be requested.
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Concurred By:
Valerie Arenas Rey
Special Districts Division Manager
CITY COUNCIL GOALS
Community Image, Neighborhood Pride and Cleanliness: Promote a sense of community pride and foster an excellent image about our City by developing and executing programs which will result in quality development, enhanced neighborhood preservation efforts, including home rehabilitation and neighborhood restoration.
CITY COUNCIL STRATEGIC PRIORITIES
1. Economic Development
2. Public Safety
3. Library
4. Infrastructure
5. Beautification, Community Engagement, and Quality of Life
6. Youth Programs
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Report Approval Details
Document Title: STAFFREPORT_FMS_SD_RESOLUTIONS TO LEVY
ASSESSMENTS FOR LMD 2014-01_03.17.26.docx
Attachments: - LMD 2014-01 Resolution Initiating Proceedings.docx - LMD 2014-01 Resolution Approving Engineer's Report.docx - LMD 2014-01 Resolution Declaring Intent.docx
- LMD 2014-01 Preliminary Engineer's Report FY 2026-27.pdf Final Approval
Date:
Mar 9, 2026
This report and all of its attachments were approved and signed as outlined below:
No Signature found
Valerie Arenas Rey
Natalia Medina
Felicia London, MPA
Launa Jimenez
Brian Mohan
Patty Rodriguez