Landscape Maintenance Districts
Consideration of Next Steps for
Proposition 218 Hearings
Landscape Maintenance Districts 1,2, and 3
LMDs Purpose & Assessment
Proposition 218 Hearing LMD Consideration
Landscape Maintenance Districts (LMDs) are used by cities to ensure that a new development pays its own way for landscaping, lighting, and parks.
Rates in LMD’s are adjusted by the City Council each year based CPI.
The mail ballot process is required to further adjust assessment rates if the District is in a deficit.
LMDs in Norco
Proposition 218 Hearing LMD Consideration
5 LMDs in the City of Norco
Each of the projects listed were approved by the City Council with conditions that included creation of a LMD to self fund the landscape improvements associated with the project.
LMD Number
Project Name
Number of Parcels
Year of Formation
LMD 1
“Beazer”
67 SFR
1999
LMD 2
“Western Pacific” or “Norco Estates”
217 SFR
2000
LMD 3
“Centex”
82 SFR
2001
LMD 4
“Norco Ridge Ranch”
562 Mixed SFR and Open Space
2002
LMD 5
“Hawk’s Crest”
50 SFR
2003
LMD Budget Summary
Proposition 218 Hearing LMD Consideration
LMDs Budgets for Fiscal Year (FY) 2022-2023, noted that LMDs 1, 2, and 3 were in a deficit or in a position where reserves are lacking and Capital Improvement Projects could not take place due to the low fund balance.
CURRENT BUDGET SUMMARY FOR LMDs 1, 2, and 3
LMD
Fund Balance 6/30/22
FY 22/23 Budgeted Rev.
FY 22/23 O&M Budget
Projected Fund Balance 6/30/23
1 $735
$11,670
$15,300
-$2,895
2 -$756
$175,000
$177,000
-$2,756
3 $9,222
$98,100
$117,600
-$10,278
Increased assessments beyond a CPI rate require a Prop. 218 hearing Optional cost scenarios for the three Districts have been developed
LMD 1 (Beazer) Prop. 218 Recommendation
Proposition 218 Hearing LMD Consideration
Assessment per Parcel FY 22-23: $174.17
FY 22-23 Revenue Received from 67 Parcels
Staff Recommendation:
No Action
Staff will continue to evaluate budget options or possible re-organization of this District.
LMD 2 (Western Pacific)
Proposition 218 Hearing LMD Consideration
Assessment per Parcel FY 22-23: $798.92
FY 22-23 Revenue Received from 217 Parcels
LMD 2 Prop. 218 Options/Recommendation
Proposition 218 Hearing LMD Consideration
Option 1: No Action
Option 2: 8% Increase (O&M and Fence Replacement)
Per Parcel proposed FY 23-24 Assmt.: $862
Increase of $63 from prior year or 8%
Option 3: 16% Increase (O&M, Fence Replacement, & 20% Res.) Per Parcel proposed FY 23-24 Assmt.: $927 Increase of $129 from prior year or 16%
Staff Recommendation: Option 3
LMD 2 Prop. 218 Hearing Incentives
Proposition 218 Hearing LMD Consideration
CIP Path Fencing
CIP Parks Projects
LMD 3 (Centex)
Proposition 218 Hearing LMD Consideration
Assessment per Parcel FY 22-23: $1,196.59
FY 22-23 Revenue Received from 82 Parcels
LMD 3 Prop. 218 Options/Recommendation
Proposition 218 Hearing LMD Consideration
Option 1: No Action
Option 2: 11% Increase (O&M)
Per Parcel proposed FY 23-24 Assmt.: $1,348 Increase of $152 from prior year or 11% Option 3: 19% Increase (O&M, Fence Replacement) Per Parcel proposed FY 23-24 Assmt.: $1,451 Increase of $253 from prior year or 19%
Staff Recommendation: Option 3
LMD 3 Prop. 218 Hearing Incentives
Proposition 218 Hearing LMD Consideration
CIP Fencing
Continued Turf Maintenance
Staff Recommendation Summary
Proposition 218 Hearing LMD Consideration
LMD 1- CPI Increase only, no Prop. 218 process
LMD 2- Initiate Prop. 218 process for assessment increase of 16% LMD 3- Initiate Prop. 218 process for assessment increase of 19%
Next Steps
Proposition 218 Hearing LMD Consideration
With direction from Council, budgets will be finalized and draft engineer’s reports will be prepared. Should there be direction to move forward with a Proposition 218 increase assessment option, the following timeline of events shall commence:
April 14, 2023 - RKA will send out the letters and ballots April 29, 2023 - Public Prop. 218 Informational Meeting April 19, 2023 - Council to Set the Public Hearing
May 10, 2023 - Public Prop. 218 Informational Meeting
June 07, 2023 - Public Ballots due to City Clerk
June 07, 2023 - Public Hearing to consider the proposed annual assessments
Proposed 218 Hearing Consideration