Report to City Council
ID: 26-0194 Page 1
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: May 19, 2026
TITLE: PUBLIC HEARING TO CONFIRM A DIAGRAM AND
ASSESSMENTS FOR LIGHTING MAINTENANCE
DISTRICT NO. 2014 -02 FOR FISCAL YEAR 2026/27
(RESO. NO. CSD 2026 -XX) (REPORT OF: FINANCIAL
AND MANAGEMENT SERVICES) (DISTRICT: ALL
DISTRICTS)
TITLE SUMMARY: Public Hearing for Lighting Maintenance District No. 2014 - 02 for FY 2026/27 Proposed Levy of Real Property
Assessments
DISTRICT: All Districts
Recommendation(s)
That the Community Services District:
1. Conduct the Public Hearing on the proposed levy of real property assessments for Moreno Valley Community Services District Lighting Maintenance District No. 2014-02.
2. Adopt Resolution No. CSD 2026-XX, a Resolution of the Board for the Moreno Valley Community Services District of the City of Moreno Valley, California, Ordering that Costs for Certain Improvements Shall Be Raised Through Installments Over a Period of Years and Confirming Diagrams and Assessments for Fiscal Year 2026/27 in Connection with Moreno Valley Community Services District Lighting Maintenance District No. 2014-02.
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3. Authorize the Chief Financial Officer to adjust the proposed assessments in the event there are any parcel changes, clerical errors, or other adjustments as may be necessary between the date the assessments were calculated and the date the fixed charges are submitted to the County of Riverside, provided the applied assessments do not exceed the maximum assessments and are in compliance with the formation documents for the district.
SUMMARY
This report recommends the Board for the Moreno Valley Community Services District (“CSD Board”) conduct a Public Hearing and consider adoption of the resolution (Attachment 1), which confirms the diagrams (i.e. maps), authorizes the levy of assessments on the fiscal year (FY) 2026/27 property ta x roll, and orders the collection of revenue for future capital improvement projects for Moreno Valley Community Services District Landscape Maintenance District No. 2014 -02 (“LMD No. 2014 -02” or “District”).
This is a routine process that occurs each year.
The proposed assessments are a continuation of the real property assessments currently levied on the property tax bills. There are no increases proposed to the maximum assessments other than an annual inflationary adjustment, provided the property owners previously approved such adjustment. The revenue received from the assessments partially funds the ongoing maintenance of the public landscaping within the District and in some zones, is collected for related capital improvement or reinvestment projects.
The Finance Subcommittee reviewed the annual inflationary adjustments proposed to be applied to the maximum assessment rates, if previously authorized by the property owners, at its April 28, 2026, meeting.
DISCUSSION
On May 27, 2014, the CSD Board adopted its Resolution No. CSD 2014-09, establishing LMD No. 2014 -02 (certain former CSD landscape zones). On May 12, 2015, Zone 09 annexed into the District. There are eleven benefit zones included in LMD No. 2014 -02.
Each z one provides a specific set of public landscape maintenance services within a defined geographical area of the City. Property owners of benefiting parcels in the zones pay a special assessment, which is levied on their annual property tax bill, to fund the cost of maintaining the public landscaping within the zone (i.e., Special Benefit). Revenue received from the assessment funds the cost to provide the Special Benefit, as defined in the Assessment Engineer’s Report (“Report”) (Attachment 2), to maintain t he public landscaping located within the District. The Report is also available from the City Clerk’s office and accessible from the City’s website (www.moval.org/sd).
Each year, the CSD Board must initiate proceedings and conduct a Public Hearing (Landscaping and Lighting Act of 1972) to receive public input on the proposed levy. The assessments cannot be levied on the property tax roll, nor can an adjustment be made to the maximum assessment rate unless the property owners previously approved and the CSD Board authorizes such actions. Approval of the resolution confirms the maps and
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confirms the maximum and applied assessments. The resolution also authorizes the County to levy the assessments on the FY 2026/27 property tax roll.
On March 17, 2026, the CSD Board adopted resolutions to initiate the annual proceedings for the FY 2026/27 levy and approved the Report. The Report includes a description of the improvements within the District and the proposed service levels, the estimated annual expenses for each zone, funding to be collected for capital improvement projects within a zone, the method of assessment apportionment for each lot or parcel within the District boundaries, and diagrams showing the parcels within the zones that make up the District.
At the time the City accepts an area’s public landscaping for maintenance, the assessment is set at a rate sufficient to fund the City’s standard frequency of service, Level 1 (4-week rotation). For those zones where costs to maintain the landscaping have increased and the property owners have not approved a mail ballot proceeding to adjust the assessment rate to fund those increases, the frequency of service has been reduced to a level consistent with available funding. The table below identifies each of the benefit zones and proposed service level for FY 2026/27.
The Report also provides an analysis of each zone’s annual financial status. It separates and apportions the cost of General Benefit, as defined in the Report, and the cost of Special Benefit (i.e., funded by the assessment) of the landscape maintenance services to the benefiting properties. The General Fund is also programmed to cover additional costs, aside from the cost of General Benefit, which are outlined in the Fiscal Impact section of this report.
The maximum assessment rate is the maximum amount that can be used to calculate the assessment levied on the property tax roll. If the property owners previously approved an annual inflationary adjustment, the Report recommends adjusting the maximum rates by the adjustment. Zone 04 is the only zone without a property owner approved adjustment.
Zone Development Service Level1 Sq.Ft. of Landscaping
Zone 01 Towngate Level 1 323,609
Zone 01A Renaissance Park Level 3 72,335
Zone 02 Hidden Springs Level 1 3,868,040 Zone 03 Moreno Valley Ranch - West Level 1 866,943
Zone 03A Lasselle Powerline Parkway Level 3 53,774
Moreno Valley Ranch - East
Parkways Level 5
Medians Level 3
Zone 05 Promontory Park Level 1 98,392
Zone 06 Mahogany Fields Level 1 175,864
Zone 07 Celebration Level 1 225,154
Zone 08 Shadow Mountain Level 1 76,771
Zone 09 Savannah Level 1 64,456
1 Frequency of Service. Each level is increased by 4-week increments. Level 1=4-week; Level 3=12-week; Level 5=20-week.
Zone 04 980,154
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The applied assessment rate is the amount that is used to calculate the assessment actually levied on the property tax roll. The applied assessment is the amount necessary to fund the services of the zone, including administration and reserves, for the upcoming fiscal year. The applied assessment rate cannot exceed the maximum assessment rate.
The assessment is calculated by applying the rate on an equivalent benefit unit basis, as defined in the Report, of those parcels in the zone. The proposed maximum and applied assessments, by parcel, are included in the Report.
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 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 abundance 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 a llows 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 interest based on property ownership within the respective district.
ALTERNATIVES
1. Conduct the Public Hearing and approve the recommended actions as presented.
Staff recommends this alternative, as it is consistent with the 1972 Act and will allow for the collection of revenue necessary to support the services the District was created to provide. This alternative will avoid burdening the General Fund to provide the services.
2. Conduct the Public Hearing and do not approve the recommended actions. Staff does not recommend this alternative as it may prevent the City from levying the FY 2026/27 assessments and collecting the funding to support the services of the District as requested by the property owners. Selection of this alternative may require a contribution from the General Fund.
3. Open the Public Hearing but continue consideration of the remaining recommendations to a future regular CSD Board meeting. Staff does not recommend this alternative as it may prevent the City from meeting the County’s deadline to include the assessment on the FY 2026/27 property tax roll.
FISCAL IMPACT
Property owners pay the LMD No. 2014-02 assessment as a part of their annual property tax bill. The assessment, including inflationary adjustments where applicable, has been
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approved by the property owners through prior proceedings. Funds received for the benefit of each zone are restricted and can only be used to fund the services of that zone.
The recommended assessment rates for FY 2026/27 are listed in the table below.
For FY 2026/27, the property assessments are projected to generate $2,906,142.11 in revenue. The projected expenditures for the District are $3,336,583.93. Other revenue sources to the District (e.g., interest income), the use of available unassigned reser ves for applicable zones, and the General Fund are programmed to fund the difference between the projected assessment revenue and expenditures.
The City’s FY 2026/27 Proposed Operating Budget includes a General Fund contribution of $238,910.59, which is detailed below.
Zone # of EBUs1 Maximum2 Applied3,4 Maximum2 Applied3
Adjustment to
Maximum4
Change in
Applied
Assessment
Revenue5
Zone 01 2,180 188.90$ 188.90$ 194.59$ 194.59$ 3.01% 5.69$ 424,135.54$ Zone 01A 557 115.66$ 115.64$ 119.14$ 119.14$ 3.01% 3.50$ 66,360.98$ Zone 02 1,247 595.88$ 595.88$ 613.82$ 613.82$ 3.01% 17.94$ 765,237.46$ Zone 03 4,534 188.90$ 188.90$ 194.59$ 194.59$ 3.01% 5.69$ 882,209.52$ Zone 03A 467 100.45$ 100.44$ 103.47$ 103.46$ 3.01% 3.02$ 48,315.82$ Zone 046 2,401 110.00$ 110.00$ 110.00$ 110.00$ 0.00% -$ 264,132.00$ Zone 057 334 593.66$ 215.36$ 611.54$ 265.36$ 3.01% 50.00$ 88,630.24$ Zone 067 422 415.69$ 331.14$ 428.20$ 381.14$ 3.01% 50.00$ 160,841.08$ Zone 077 262 497.99$ 128.16$ 512.98$ 178.16$ 3.01% 50.00$ 46,677.92$ Zone 087 291 438.52$ 260.16$ 451.73$ 310.16$ 3.01% 50.00$ 90,256.56$ Zone 097,8 150 913.12$ 412.30$ 940.61$ 462.30$ 3.01% 50.00$ 69,345.00$ Total Projected Assessment Revenue 2,906,142.11$
FY 2025/26
1 Equivalent Benefit Units. Generally, an EBU is equivalent to a single-family residential (SFR) parcel. Properties other than SFR (e.g. undeveloped land or condo) will be assigned an EBU greater or less than 1, depending upon the formula in the Engineer's Report.(Rounded). 2 Maximum Rate that can be used to calculate assessment levied as previously authorized by the property owners.(Rounded) 3 Applied Rate is the amount used to calculate the assessment levied on the property tax roll. (Rounded) 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). 5 Total of proposed levy differs from calculation of EBUs and rate shown due to rounding. 6 Does not have a property owner approved annual adjustment. 7 Applied rate lower due to projected expenses and/or available fund balances. 8 Property owners authorized an annual inflationary adjustment to the maximum assessment rate equal to the greater of CPI or 3.0%.
Proposed FY 2026/27
LMD 2014-02 Assessment Rates
(Landscape Maintenance)
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Third-party costs associated with the annual levy approval process and preparation of the reports for LMD No. 2014-02 are projected not to exceed $5,000.00. Third-party services include a consultant assessment engineer, special legal co unsel, and publication of a legal notice. These costs are included in the City’s FY 2026/27 Adopted Operating Budget for LMD No. 2014-02 (Fund 5014).
NOTIFICATION
The Public Hearing notice was published in The Press -Enterprise on Thursday, May 7, 2026 in compliance with Streets & Highways Code Section 22626.
PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:
Valerie Arenas Rey Felicia London
Special Districts Division Manager Chief Financial Officer/City Treasurer
Concurred By:
Patty Yhuit
Deputy Finance Director (Operations)
CITY COUNCIL GOALS
Community Image, Neighborhood Pride and Cleanliness: Promote a sense of community pride and foster an exc ellent image about our City by developing and executing programs which will result in quality development, enhanced neighborhood preservation efforts, including home rehabilitation and neighborhood restoration.
Revenue Diversification and Preservation: De velop a variety of City revenue sources and policies to create a stable revenue base and fiscal policies to support essential City services, regardless of economic climate.
CITY COUNCIL STRATEGIC PRIORITIES
1. Economic Development
2. Public Safety
Type Description Amount
General Benefit Cost
As defined in the Report, represents costs which are not allowed to be assessed to properties and therefore, are apportioned to the General Fund.The General Benefit is the benefit the public receives from the public landscape improvements in the District and is the minimum amount the community would fund (e.g. costs for weed abatement and erosion control) had the improvements not been installed by the development. 198,181.00$
General Fund
Maintained Area
Costs
Funds the ongoing maintenance of improvements that provide no Special Benefit to the parcels in the zone and therefore, cannot be funded by the assessments; these improvements were included within a zone at the time of development (e.g. drainage area in Zone 04).
16,312.46$
Contribution for Non-
Assessed Parcels
Funds the annual contribution for parcels that benefit from the improvements but have not been assessed because the property owner has not approved the rate through a mail ballot proceeding; these are, or were, typically government owned properties (e.g. Fire Station).
24,417.13$
238,910.59$
General Fund Costs
Total
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3. Library
4. Infrastructure
5. Beautification, Community Engagement, and Quality of Life
6. Youth Programs
Objective 4.2: Develop and maintain a comprehensive Infrastructure Plan to invest in and deliver City infrastructure.
Objective 5.2: Promote the installation and maintenance of cost effective, low maintenance landscape, hardscape and other improvements which create a clean, inviting community.
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Report Approval Details
Document Title: STAFFREPORT_FMS_SD_PUBLIC HEARING FOR LMD 2014-02_05.19.26.docx
Attachments: - Resolution Confirming Assessments for LMD 2014-02.docx - FY 2026-27 LMD 2014-02 Engineer's Report_Signed.pdf
Final Approval Date: May 13, 2026
This report and all of its attachments were approved and signed as outlined below:
No Signature found
Valerie Arenas Rey
No Signature found
Patty Yhuit
Natalia Medina
Felicia London, MPA
No Signature - Task assigned to Launa Jimenez was completed by assistant Angel Galache
Launa Jimenez
Brian Mohan
Patty Rodriguez