GERALD FORD DR
TAMARISK ROW DR
OASIS CLUB DR
ELDORADO DR
PITAHAYA ST
COOK ST
TOWN CENTER
WAY
SHA D O W MOUNTAIN DR
42ND AVE
FRANK SINATRA DR
FRED WARING DR
WASHINGTON ST
WARNER TR
MAGN L
ESIA FALLS DR
HOVLEY LN W
COOK ST
FRED WARING DR
EL PASEO
HAYSTACK RD
HOVLEY LN E
PORTOLA AVE PORTOLA AVE
VARNER RD
FRED WARING DR
ELDORADO
DR
MILES AVE
FRANK SINATRA DR
GERALD
F O R D D R GERALD FORD
DR
COOK ST
COUNTRY CLUB DR
PORTOLA AVE
VARNER RD
FRED WARING DR
PORTOLA AVE
COOK ST
MONTEREY AVE
HOVLEY LN E
VARNER RD
ELDORADO DR
FRANK SINATRA DR
COOK ST
HOVLEY LN E
HOVLEY LN E
MERLE DR
PORTOLA
AVE
MONTEREY AVE
DINAH SHORE DR
ECLECTIC
ST
MONTEREY AVE
CORPORATE
WAY
CALIFORNIA AVE
AVENUE
OF THE
STATES
TENNESSEE
AVE KANSAS
ST
RUTLEDGE WAY
SAN PASCUAL AVE
PARK VIEW DR
FAIRWAY DR
SAN PABLO AVE
DE ANZA WAY
ALESSANDRO DR
DEEP CANYON RD
SAN GORGONIO WAY
CALLE DE
LOS CAMPESINOS
SAN LUIS
REY AVE
COUNTRY CLUB DR COUNTRY CLUB DR
HARRIS
LN
HWY 111
WASHINGTON ST
BAD No. 1
WARING COURT PARKWAYS
THE GROVE
PARKWAYS
PORTOLA
PLACE
PARKWAYS
PALM GATE
PARKWAYS
CANYON CREST
PRIMROSE II PARKWAYS
DESERT MIRAGE PARKWAY
AND ENTRANCE ISLANDS
COLLEGE
VIEW ESTATES
I PARKWAYS
COLLEGE VIEW II
PARKWAYS
SUNDANCE WEST PARKWAYS
SUNDANCE EAST PARKWAYS
PETUNIA I PARKWAYS
BOULDERS PARKWAYS
KAUFMAN AND BROAD
DEVELOPMENT PARKWAYS
PALM DESERT
CC PERIMETER
LANDSCAPE
PRESIDENT'S PLAZA I
PRESIDENT'S PLAZA II
PRESIDENT'S PLAZA III
THE GLEN PARKWAY
MONTEREYMEADOWS
PARKWAY
SONATA II PARKWAY
HOVLEY ESTATES PARKWAY
HOVLEY
COLLECTION
PARKWAY
HOVLEY
COURT WEST
PARKWAY
SONATA I PARKWAY
DIAMONDBACK
PARKWAY
LA PALOMA II PARKWAY
LA PALOMA I PARKWAY
SANDPIPER
CT WEST
PARKWAY
LA PALOMA III PARKWAY
SANDPIPER CT PARKWAY
PALM COURT PARKWAY
VINEYARDS
PARKWAYS
Consolidated Palm Desert
Landscape & Lighting
District No. 1
City Boundary
PAG
I
E 31A
451
452
City of Palm Desert Staff Report
Meeting Date: July 9, 2026
Prepared By: Chris Gerry, Senior Project Manager
Department: Public Works
Subject: Conduct a Public Hearing and Adopt Resolutions Declaring the Results of the Property Owner Protest Ballot Proceeding and Confirming the Annexation of Tract 31377 (Corte Placitas) into Consolidated Palm Desert Landscaping and Lighting District No. 1, Zone
Recommendation
1. Adopt a resolution entitled, “A Resolution of the City Council of the City of Palm Desert, California, Declaring the Results of the Property Owner Protest Ballot Proceeding Conducted for the Levy of Assessments Related to the Annexation of Territory (Tract 31377 – Corte Placitas) to the Consolidated Palm Desert Landscaping and Lighting District No. 1 (Zone #6 – Hovley Lane), Fiscal Year 2026-27 and Approving Certain Related Actions.”
2. If no majority protest exists, adopt a resolution entitled, “A Resolution of the City Council of the City of Palm Desert, California, Confirming the Annexation of Parcels within Tract 31377 – Corte Placitas to the Consolidated Palm Desert Landscaping and Lighting District No. 1 (Zone #6 – Hovley Lane), the Diagram and Assessments Related Thereto, Overruling All Protests Concerning the Assessments, and Ordering the Levy and Collection of Assessments for Fiscal Year 2026-27.”
Executive Summary
On May 14, 2026, the City Council initiated proceedings for the annexation of Tract 31377 (Corte Placitas) into Consolidated Palm Desert Landscaping and Lighting District No. 1, Zone #6 (Hovley Lane), and ordered a Proposition 218 property owner protest ballot proceeding.
The proposed annexation would transfer responsibility for maintaining neighborhood landscaping, irrigation, and street lighting improvements from the Corte Placitas Homeowners Association (HOA) to the City through the Landscaping and Lighting District (LLD) program.
As part of the Proposition 218 process, notices and assessment ballots were mailed to all affected property owners at least 45 days prior to the public hearing. The proposed Fiscal Year (FY) 2026-27 assessment is $507.06 per parcel and would fund ongoing maintenance, administration, reserves, and repayment of a City advance for initial infrastructure improvements.
At this hearing, the City Council will receive public testimony and consider the results of the property owner protest ballot proceeding. If a majority protest does not exist, the City Council may approve the annexation and authorize the levy and collection of assessments commencing in FY 2026-27.
453
Background
In September 2024, representatives of the HOA contacted the City seeking relief from landscape maintenance obligations associated with public right-of-way improvements. The HOA indicated that managing these obligations had become increasingly difficult due to the small size of the association and the number of part-time residents within the neighborhood.
That request prompted a broader evaluation of privately maintained landscape improvements throughout Palm Desert. In December 2025, the City Council conducted a study session regarding the potential transition of select HOA-maintained landscaping improvements into City-administered LLD zones. Corte Placitas was identified as one of the neighborhoods appropriate for further evaluation.
On April 16, 2026, staff conducted a neighborhood meeting with homeowners within Corte Placitas. Nine of the twenty homeowners were present at the meeting, and all attendees expressed support for moving forward with the annexation process.
On May 14, 2026, the City Council adopted resolutions initiating annexation proceedings and declaring its intention to annex Tract 31377 into Zone #6 of the Consolidated Palm Desert Landscaping and Lighting District No. 1. The Council also ordered a Proposition 218 property owner protest ballot proceeding and scheduled this public hearing.
Analysis
The proposed annexation area consists of twenty residential parcels located along Corte Placitas, situated along Hovley Lane West between Monterey Avenue and Portola Avenue.
The improvements proposed to be maintained through the LLD include parkway landscaping, irrigation facilities, tree maintenance, and neighborhood street lighting improvements.
The proposed assessment methodology is based on Equivalent Benefit Units (EBUs), consistent with the methodology used throughout the City's existing LLD. Because all twenty parcels are single-family residential properties receiving the same level of special benefit, each parcel would be assessed equally.
Assessment and Financial Considerations
For FY 2026-27, the total balance to levy is $10,141.20, resulting in an annual assessment of $507.06 per parcel. The assessment includes ongoing maintenance costs, administrative expenses, reserve funding, and a capital improvement component that will be used to repay a City advance intended to fund initial infrastructure and landscape improvements.
The City previously approved advancing $20,000 for installation of an irrigation controller, electrical service improvements, and other minor landscape enhancements necessary to transition the improvements into the City's maintenance program. The advance will be repaid through annual assessments over a ten-year period. Upon repayment, the annual assessment is anticipated to decrease, with any remaining funds to be credited to the following fiscal’s annual levy, with exception of the City’s ability to retain 50% of the annual estimated assessment to pay for costs incurred in between County property tax distributions. 454
The Engineer's Report also establishes an annual assessment range formula that allows future adjustments based on the Consumer Price Index for the Riverside-San Bernardino-Ontario area, subject to a maximum annual increase of three percent. Any future assessment exceeding the authorized maximum would require additional Proposition 218 proceedings.
Proposition 218 Ballot Proceeding
Pursuant to Article XIII D of the California Constitution, the City conducted a property owner protest ballot proceeding for the proposed annexation and assessments. Assessment ballots were mailed to each property owner of record within the annexation area and were weighted according to each property's proportional financial obligation.
At the conclusion of the public hearing, ballots received by the City Clerk will be opened and tabulated. The City Clerk will report the results of the ballot proceeding and enter the results into the official record.
If the weighted ballots submitted in opposition exceed those submitted in favor, a majority protest exists and the proceedings must be abandoned. If a majority protest does not exist, the City Council may approve the annexation of Tract 31377 into Zone #6 of the Consolidated Palm Desert Landscaping and Lighting District No. 1 and authorize the levy and collection of assessments commencing FY 2026-27.
Future HOA Dissolution
This transition is a prerequisite to the eventual dissolution of the HOA because it provides an alternative funding and maintenance mechanism for improvements currently maintained by the association. Approval of the annexation does not dissolve the HOA. Any future action related to HOA dissolution would require separate actions by the property owners at a later date.
Environmental Review
This action is not a project under the California Environmental Quality Act because it is an administrative, organizational, procedural, fiscal, or informational activity that will not result in a direct or reasonably foreseeable indirect physical change in the environment.
Legal Review
This report has been reviewed by the City Attorney’s Office.
Financial Impact
The proposed FY 2026-27 assessment rate is $507.06 per parcel, generating approximately $10,141.20 annually from the twenty parcels within the annexation territory. Assessment revenues will be used to fund landscape maintenance, irrigation system maintenance, utilities, administrative costs, reserve funding, and repayment of the City's previously approved $20,000 advance for initial infrastructure and landscape improvements.
The annual assessments are designed to fully fund the ongoing operation and maintenance of the improvements within the annexation area, providing a dedicated and sustainable funding source for these services. The City advance will be repaid over a ten-year period through the 455
assessment, after which future assessment levels may be reduced based on maintenance and reserve requirements.
If approved, the annexation will allow the City to assume maintenance responsibilities without requiring ongoing General Fund support. Therefore, no additional General Fund subsidy is anticipated beyond the previously approved $20,000 advance, which has been included in the FY 2025-26 Budget for transfer to LLD Fund 274.
Attachments
1. Draft Resolution – Declaring Results of Property Owner Protest Ballot Proceeding
2. Draft Resolution – Confirming Annexation and Ordering Levy of Assessments
3. Engineer's Report – Annexation of Tract 31377 (Corte Placitas) 456
Conflict of Interest Awareness Checklist
Note: This checklist is informational only and does not constitute a legal determination. Each Councilmember remains responsible for identifying, disclosing, and evaluating any disqualifying interests under the Political Reform Act and applicable FPPC regulations.
1. Site-Specific Property Interest
Does this item involve a project site or other identifiable real property? ☐ Yes
☐ No
If yes, identify the project site: If a Councilmember owns or leases property in or near Tract 31377/Corte Placitas or the affected LLD improvements, please contact the City Attorney for additional analysis.
Councilmembers should consider whether they own, lease, or hold interests in real property within 1,000 feet of the project site. (Gov. Code § 87103(b); FPPC Reg. 18702.2).
2. SB 1439 / Gov. Code § 84308 Applicability (Campaign Contributions) Does this item involve a license, permit, other entitlement for use, or a contract or franchise agreement that is not competitively bid, a labor agreement, or a personal employment contract?
☐ Yes
☒ No
If yes, identify the applicant(s), appellant(s), party, or participant(s):
Councilmembers should review campaign contributions received within the prior 12 months from parties or participants to the proceeding and must not accept contributions over $500 from those parties for 12 months following the final decision. (Gov. Code § 84308). 457
458
Resolution No. 2026-____
A Resolution of the City Council of the City of Palm Desert, California, Declaring the Results of the Property Owner Protest Ballot Proceeding Conducted for the Levy of Assessments Related to the Annexation of Territory (Tract 31377 – Corte Placitas) to the Consolidated Palm Desert Landscaping and Lighting District No. 1 (Zone #6 – Hovley Lane), Fiscal Year 2026/2027 and Approving Certain Related Actions
Whereas, the City Council called and duly held a property owner protest ballot proceeding for the annexation of territory (Tract 31377 – Corte Placitas), generally located along Hovley Lane West, east of Monterey Avenue, west of Portola Avenue and includes parcels facing Corte Placitas (hereafter referred to as “Annexation Territory”) into Zone #6 (Hovely Lane) of the Consolidated Palm Desert Landscaping and Lighting District No. 1 (hereafter referred to as the “District”), pursuant to the provisions of the Landscaping and Lighting Act of 1972 being Part 2, Division 15 of the California Streets and Highways Code (hereinafter referred to as the “Act”), and the California Constitution Article XIII D (hereinafter referred to as the “Constitution”), for the purpose of presenting to the qualified property owners within the Annexation Territory the proposed annual levy of assessments for the improvements connected therewith. Said annual assessments, commencing in Fiscal Year 2026/2027, as presented to the affected property owners of record in this ballot proceeding including the maximum assessment rate and annual inflationary adjustment, would fund the costs and expenses related to the operation, maintenance and servicing of the landscaping and lighting improvements and appurtenant facilities related thereto that provide special benefits to properties within the Annexation Territory, and,
Whereas, the landowner(s) of record within the Annexation Territory as of the close of the Public Hearing held on July 9, 2026, did cast their ballots, weighted by the proportional financial obligation of each ballot, the results of which are illustrated below:
Total Ballots Cast Yes Total No Total
$ ____________ $ ____________ $ ____________
Now, therefore, be it resolved by the City Council of the City of Palm Desert, California, as follows:
Section 1. The above recitals are true and correct.
Section 2. Proceedings.
The protest proceedings for the Annexation Territory assessments were conducted pursuant to the provisions of the Constitution with ballots presented to the affected property owner(s) for receipt by the City Clerk prior to the conclusion of the Public 459
Resolution No. 2026-____ Page 2
Hearing on July 9, 2026, with each ballot weighted according to the proportional financial obligation of the affected property.
Section 3. Canvass of Ballots.
The tabulation and canvass of the property owner protest ballots was conducted by the City Clerk or their designee, with all valid protest ballots returned, and not withdrawn, by the affected property owners being counted, the results of which as shown herein, have been presented to the City Council and are hereby confirmed.
Section 4. Official Declaration of Results.
The City Clerk is hereby directed to enter this Resolution into the minutes of the City Council, which shall constitute the official declaration of the result of such property owner protest proceeding.
Section 5. Certification.
This Resolution shall become effective immediately upon its adoption and the City Clerk shall certify the adoption of this Resolution.
Section 6. Effective Date.
This resolution shall become effective immediately upon its adoption.
Adopted on .
Evan Trubee
Mayor
Attest:
Anthony J. Mejia
City Clerk
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that Resolution No. 2026-____ is a full, true, and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Desert on .
Ayes:
460
Resolution No. 2026-____ Page 3
Noes:
Absent:
Abstained:
Recused:
In witness whereof, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on .
Anthony J. Mejia
City Clerk
461
462
Resolution No. 2026-____
A Resolution of the City Council of the City of Palm Desert, California, Confirming the Annexation of Parcels within Tract 31377 – Corte Placitas to the Consolidated Palm Desert Landscaping and Lighting District No. 1 (Zone #6 – Hovley Lane), the Diagram and Assessments Related Thereto, Overruling All Protests Concerning the Assessments, and Ordering the Levy and Collection of Assessments for Fiscal Year 2026/2027 Whereas, the City Council has by previous Resolutions initiated proceedings and declared its intention for the annexation of territory identified as Tract 31377 – Corte Placitas (hereafter referred to as “Annexation Territory”), into Zone #6 (Hovley Lane) of the Consolidated Palm Desert Landscaping and Lighting District No. 1 (hereinafter referred to as the “District”), pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code (hereinafter referred to as the “Act”) to pay the costs and expenses for the ongoing maintenance, operation and servicing of the landscaping and lighting improvements and appurtenant facilities related thereto, and
Whereas, the Assessment Engineer of Work has prepared a budget in connection with the Annexation Territory and the levy of annual assessments connected therewith and has determined that the estimated maximum annual special benefit expenses (amount balloted) to assist with maintaining the improvements in the District, specifically Zone #6, would be $10,141.20 for Fiscal Year 2026/2027. This cost being apportioned to the parcel(s) therein according to the method of apportionment established for the District results in a maximum assessment rate of $507.06 per Equivalent Benefit Unit for Fiscal Year 2026/2027, and beginning in Fiscal Year 2027/2028, the maximum assessment rate shall be subject to an annual inflationary adjustment pursuant to the Assessment Range Formula set forth in the Engineer’s Report. The annual adjustment shall be based on the Consumer Price Index (“CPI”) for All Urban Consumers for the Riverside-San BernardinoOntario area, as published by the U.S. Department of Labor, Bureau of Labor Statistics, or any successor or comparable index approved by the City Council if such index is revised or discontinued; provided, however, that the annual adjustment shall not exceed three percent (3.0%) in any fiscal year as identified in the Engineer’s Report, and Whereas, the improvements installed and constructed are maintained by the City as part of the District, and
Whereas, the Assessment Engineer of Work has incorporated said Annexation Territory along with the levy of annual assessments and Assessment Diagram connected therewith into the annual Engineer’s Report prepared in connection with the District for Fiscal Year 2027/2028, and said Report is incorporated herein by reference and shall be filed with the City Clerk pursuant to Section 22623 of the Act, and Whereas, the City Council desires to levy and collect assessments against parcels of land within the Annexation Territory for the fiscal year commencing July 1, 2026, and 463
Resolution No. 2026-____ Page 2
ending June 30, 2027 (Fiscal Year 2026/2027), to pay the costs and expenses of the ongoing operation, maintenance, and servicing of improvements determined to be of special benefit to the properties within the Annexation Territory, and all appurtenant facilities related thereto, and
Whereas, the City Council has conducted a property owner protest ballot proceeding for the Annexation Territory assessments proposed to be levied commencing Fiscal Year 2026/2027 as described herein, and majority protest of the assessments did not exist pursuant to the provisions of the California Constitution Article XIII D (hereinafter referred to as the “Constitution”).
Now, therefore, be it resolved by the City Council of the City of Palm Desert, California, as follows:
Section 1. The above recitals are true and correct.
Section 2. Protest Determination.
Following notice duly given, the City Council has held a full and fair Public Hearing regarding the Annexation Territory, the levy and collection of assessments, and by Resolution, approved the proposed assessments prepared in connection therewith; and has considered all oral and written statements, protests and communications made or filed by interested persons. The City Council in accordance with the provisions of the Constitution has determined that a majority protest does not exist for the annexation of properties identified as the Annexation Territory or the assessments so presented.
Section 3. Findings.
Based upon its review of the facts presented, the City Council hereby finds and determines that:
a) The land within the Annexation Territory will receive special benefit from the operation, maintenance, and servicing of improvements to be provided by the City as part of the District.
b) The Annexation Territory includes all of the lands receiving such special benefit.
c) The net amount to be assessed upon the lands within the Annexation Territory has been apportioned by a formula and method which fairly distributes the net amount among all eligible parcels in proportion to the special benefit to be received by each parcel from the improvements and services to be provided commencing with Fiscal Year 2026/2027. 464
Resolution No. 2026-____ Page 3
Section 4. Improvements.
The City Council hereby orders the continuous maintenance of improvements in the Annexation Territory. Said improvements include but are not limited to the maintenance, operation, and incidental expenses related to street lighting and the landscaped areas associated with the parcels of land within the Annexation Territory that may include, but are not limited to: turf; ground cover; shrubs and trees; irrigation systems; decorative lighting; water features; entry monuments; drainage systems; hardscapes; and associated appurtenances connected with the public right-of-way, public easements and facilities designated and to be maintained by the City in connection with the special benefit received by parcels of land within the Annexation Territory. The cost of providing such improvements generally include, but are not limited to all materials, equipment, utilities, labor, and incidental expenses including administrative expenses for the regular annual maintenance as authorized by the Act. Detailed maps and descriptions of the location and extent of the specific improvements to be maintained for the Annexation Territory are on file in the Public Works Department of the City of Palm Desert and by reference these plans, and specifications are made part of this Resolution and the Engineer’s Report prepared in connection with these proceedings.
Section 5. Collection of Assessments.
The County Auditor/Controller of Riverside County (hereafter referred to as the “County”) will enter on the County Assessment Roll, opposite each eligible parcel of land, the amount of the levy so described in the Engineer’s Report for the Annexation Territory known as Tract 31377 to Zone #6 of the District. The levy will be collected at the same time and in the same manner as County taxes are collected. After the County collects the levy, the net amount of the levy will be paid to the Treasurer of the City of Palm Desert.
Section 6. Assessment Range Formula.
The City Council hereby approves and incorporates by reference the Assessment Range Formula described in the Engineer’s Report, including the annual CPI adjustment for the Annexation Territory commencing in Fiscal Year 2027/2028, subject to the three percent (3.0%) annual cap.
Section 7. Restricted Use of Assessment Money.
The City Treasurer will deposit all money representing assessments that the County has collected for the Annexation Territory to the credit of a fund for Tract 31377 of the District. This money will be expended only for the maintenance, operation, and servicing of the landscaping, lighting, and appurtenant facilities that are described in the Engineer’s Report and generally outlined within Section 4 of this Resolution. 465
Resolution No. 2026-____ Page 4
Section 8. Annexation Approval.
The adoption of this Resolution constitutes the annexation of Tract 31377 generally located along Hovley Lane West, east of Monterey Avenue, west of Portola Avenue and includes the twenty (20) parcels facing Corte Placitas (the “Annexation Territory”) to Zone #6 of the District, the boundaries of which shall be contained in the Assessment Diagram for the District; the establishment of the maximum assessment rate and assessment range formula connected therewith; and the assessments for the fiscal year commencing July 1, 2026 and ending June 30, 2027, based on the results of the protest ballots received from the property owners of record as part of the majority protest ballot proceeding conducted for the Annexation Territory.
The City Clerk shall certify to the passage and adoption of this Resolution, and the minutes of this meeting shall so reflect the City Council’s approval of the annexation of the parcels within Tract 31377 to Zone #6 (Hovley Lane) of the Consolidated Palm Desert Landscaping and Lighting District No. 1; the adoption and confirmation of the Assessment Diagram; and the establishment of the maximum assessment rates, assessment range formula, and the assessments contained in the Engineer’s Report.
Section 9. Effective Date.
This resolution shall become effective immediately upon its adoption.
Adopted on .
Evan Trubee
Mayor
ATTEST:
Anthony J. Mejia
City Clerk
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that Resolution No. 2026-____ is a full, true, and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Desert on .
Ayes:
Noes:
Absent:
466
Resolution No. 2026-____ Page 5
Abstained:
Recused:
In witness whereof, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on .
Anthony J. Mejia
City Clerk
467
468
City of Palm Desert
Consolidated Palm Desert Landscaping
and Lighting District No. 1
Engineer’s Report
Annexation of Tract 31377 (Corte Placitas) to
Local Landscaping Zone #6, Hovley Lane
Establishment of Annual Assessments
Commencing Fiscal Year 2026/2027
Intent Meeting: May 14, 2026
Public Hearing: July 9, 2026
27368 Via Industria
Suite 200
Temecula, CA 92590
T 951.587.3500 | 800.755.6864
F 951.587.3510
www.willdan.com/financial
469
ENGINEER'S REPORT AFFIDAVIT
Consolidated Palm Desert
Landscaping and Lighting District No. 1
Annexation of Tract 31377 (Corte Placitas) to
Local Landscaping Zone #6, Hovley Lane
City of Palm Desert
Riverside County, State of California
This Report and the enclosed budget, diagram and descriptions outline the annexation of territory to Local Landscaping Zone #6, Hovley Lane, within the Consolidated Palm Desert Landscape and Lighting District No. 1 commencing in Fiscal Year 2026/2027. The boundaries of Local Landscaping Zone #6, Hovley Lane, include each lot, parcel, and subdivision of land that will receive a special benefit from the proposed improvements to be provided, as the same existed at the time of the passage of the Resolution of Intention and described herein. Reference is hereby made to the Riverside County Assessor’s maps for a detailed description of the lines and dimensions of parcels within Local Landscaping Zone #6 and the annexation territory known as Tract 31377. The undersigned respectfully submits the enclosed Report as directed by the City Council.
Dated this ____________ day of ______________, 2026.
Willdan Financial Services
Assessment Engineer
On Behalf of the City of Palm Desert
By: ________________________________
Stacee Reynolds, Principal Consultant
By: ________________________________
Tyrone Peter
P.E. #C 81888
18th May
470
TABLE OF CONTENTS
INTRODUCTION ......................................................................................................................... 1 BALLOT PROCEEDINGS ................................................................................................... 2 REPORT CONTENT ............................................................................................................ 3 DISCLAIMER ....................................................................................................................... 4 PART I — PLANS AND SPECIFICATIONS................................................................................ 5 DISTRICT OVERVIEW......................................................................................................... 5 LOCAL LANDSCAPING ZONES ......................................................................................... 5 PART II — METHOD OF APPORTIONMENT ............................................................................. 8 PROPOSITION 218 BENEFIT ANALYSIS........................................................................... 8 ASSESSMENT METHODOLOGY ..................................................................................... 10 PART III — ZONE ANNEXATION BUDGET ............................................................................. 13 PART IV — ASSESSMENT ROLL ........................................................................................... 14 PART V — BOUNDARY DIAGRAM ......................................................................................... 15 471
Palm Desert LLD No. 1 Engineer’s Report – Annexation of Tract 31377 Page 1
INTRODUCTION
The City of Palm Desert (the “City”), under the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code (the “1972 Act”) and the provisions of the California Constitution Article XIII D enacted by Proposition 218 (“Proposition 218”), annually levies and collects special assessments for the City’s maintenance assessment district designated as the Consolidated Palm Desert Landscaping and Lighting District No. 1 (the “District”) in order to provide and maintain various landscaping and lighting improvements throughout the City that provide special benefits to properties within the City.
The District was formed in 1993, through the consolidation of several individual landscaping and lighting maintenance districts that previously existed within the City. The original districts and subsequent annexations of various territories and developments to the Consolidated District are identified as separate Zones and/or Sub-zones (hereafter referred to jointly as “Zones”).
Collectively, the District incorporates and is inclusive of Zones #2, #3, #4, #5, #6, #7, #8, #9, #11, #13, #14, #15, and #16.
The City Council of the City of Palm Desert, being the governing body of the City with jurisdictional authority over the Consolidated Palm Desert Landscaping and Lighting District No. 1, may pursuant to Chapter 2, Article 2 of the 1972 Act, annex territory and levy annual assessments for the maintenance, operation, and administration of the District, and Section 22608 of the 1972 Act further states in part “In annexation proceedings, the resolutions, report, notices of hearing, and right of majority protest shall be limited to the territory proposed to be annexed…”.
In addition, the 1972 Act provides for the levy of annual assessments after annexation into an assessment district for the continued maintenance and servicing of the improvements. The 1972 Act further allows various areas to be annexed into an existing district and/or zone of benefit (“Zone”), when the territory in the annexation receives substantially the same proportional special benefits from the improvements. The costs associated with the installation, maintenance, and servicing of the improvements may be assessed to those properties, which receive a special benefit from the installation, maintenance, and servicing of such improvements.
As required pursuant to Chapter 1, Article 4 of the 1972 Act, this Report shall serve as the detailed Engineer’s Report specifically for the annexation of Tract 31377 to Zone #6, Hovley Lane, within the Consolidated Palm Desert Landscaping and Lighting District No. 1 to be designated and referred to as:
Zone #6, Hovley Lane – Tract 31377 (Corte Placitas)
(hereafter referred to as the “Annexation Territory”); and the establishment of the maximum annual assessments related thereto, to be levied and collected upon properties within the Annexation Territory commencing in Fiscal Year 2026/2027 for the special benefits received by each property from the maintenance and servicing of the improvements to be provided by the City through the District/Zone. The Annexation Territory is more specifically described in “Part I – Plans and Specification” of this Report.
Several residential tracts within the City include parkway areas that are privately maintained pursuant to landscape maintenance agreements established during their original development, most notably the small, ungated Homeowners Associations (HOAs) along Hovley Lane West and Shepherd Lane. These HOAs were assigned responsibility for maintaining frontage landscaping, irrigation infrastructure, and limited lighting within the public right-of-way in lieu of being incorporated into a City-administered 1972 Act District. 472
Palm Desert LLD No. 1 Engineer’s Report – Annexation of Tract 31377 Page 2 Recently, the HOA for Corte Placitas requested the transition of an existing landscape maintenance agreement to the City, noting that managing right-of-way landscaping has become difficult for a small board with many part-time residents. The incorporation of the Annexation Territory (Corte Placitas), as a new Sub-zone within Zone #6 will allow for a consistent and cohesive maintenance structure.
For Fiscal Year 2026/2027, the City Council of the City of Palm Desert proposes to annex the parcels within the Annexation Territory into the District/Zone to provide an annual funding source to adequately support the ongoing maintenance, servicing, operation, and incidental expenses associated with the improvements and appurtenant facilities that benefit the identified properties.
A diagram identifying the territory and location of the parcels being annexed is provided in “Part V – Boundary Diagram” of this Report.
Annually, the City establishes the assessments for each Zone within the District based on the special benefit received by the properties in that Zone and the associated net special benefit expenses. These special benefit expenses are based on the historical and estimated costs to maintain the improvements that provide direct and special benefits to properties within each Zone of the District, including the Annexation Territory, and include all expenditures, deficits, surpluses, revenues, and reserves. Each parcel is assessed proportionately for only those improvements provided and for which the parcel receives special benefits.
This Engineer’s Report (the “Report”) has been prepared pursuant to Chapter 1, Article 4 and Chapter 3 of the 1972 Act, and presented to the City Council for their consideration and approval of the improvements and services to be provided within the Annexation Territory; and the levy and collection of the proposed new/increased annual assessments related thereto to fund the costs and expenses required to service and maintain designated improvement areas within the area that provide special benefits to those parcels commencing in Fiscal Year 2026/2027. The City may advance $20,000 to the Annexation Territory for the renovation and upgrade of the existing landscape improvements.
The net annual cost to provide the improvements in the Annexation Territory is based on the various improvements and the types of improvements and services to be provided by the District/Zone for the properties that are directly associated with and benefit from those improvements and the net cost of providing those improvements and services are allocated to the benefiting properties within the Annexation Territory using a weighted method of apportionment (refer to Assessment Methodology in Section II, Method of Apportionment) that calculates the proportional special benefit and assessment for each parcel as compared to other properties that benefit from the District improvements and services.
The word “parcel,” for the purposes of this Report, refers to an individual property assigned its own Assessment Parcel Number (APN) by the Riverside County Assessor’s Office. The Riverside County Auditor/Controller uses APNs and specific Fund Numbers to identify on the tax roll properties assessed for special district benefit assessments. Each parcel within a Zone is assessed proportionately for only those improvements provided in that Zone from which the parcel receives special benefit.
BALLOT PROCEEDINGS
Pursuant to the provisions of Article XIII D, Section 4 of the California Constitution, the City shall conduct a property owner protest ballot proceeding (referred to as “Ballot Proceeding”) for the proposed levy of new or increased assessments as described in this Report. In conjunction with this Ballot Proceeding, the City Council will conduct a noticed public hearing to consider public testimonies, comments and written protests regarding the levy of the proposed new/increased 473
Palm Desert LLD No. 1 Engineer’s Report – Annexation of Tract 31377 Page 3 assessments. Upon conclusion of the public hearing, property owner protest ballots received will be opened and tabulated to determine whether majority protest exists. “A majority protest exists if, upon the conclusion of the hearing, ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment. In tabulating the ballots, the ballots shall be weighted according to the proportional financial obligation of the affected property.”
After completion of the ballot tabulation, the City Council will confirm the results of the balloting. If majority protest exists for the proposed new/increased Zone assessment, further proceedings to implement the proposed new/increased assessment shall be abandoned.
If no majority protest is found and the City Council determines that the proposed assessment(s) and the assessment range formula conform to the requirements of Proposition 218 (Article XIII D, Section 4 of the California Constitution), the Council may adopt this Report (as submitted or amended), order the annexation of Tract 31377 to Zone #6, approve the associated assessment diagrams, and confirm the assessments. In such case, the assessments as approved shall by reference be made part of and incorporated into the “Engineer’s Annual Report Fiscal Year 2026/2027” for the District and the assessments for these properties shall be submitted to the Riverside County Auditor/Controller for inclusion on the property tax roll for each affected parcel.
REPORT CONTENT
This Report has been prepared in connection with the annexation of parcels into Landscaping and Lighting District No. 1, Zone #6 and the resulting assessment for the parcels within Tract 31377 established herein in connection with the annexation of Territory for Fiscal Year 2026/2027, pursuant to a resolution of the City Council and consists of the following five (5) parts.
PART I — PLANS AND SPECIFICATIONS
This section provides an overall description of Zone #6 and the improvements for which parcels are assessed. The proposed new/increased assessments as outlined in this Report are based on the local landscaping and lighting improvements and appurtenant facilities that provide a special benefit to the properties within the Annexation Territory and operational expenses authorized pursuant to the 1972 Act. The plans and specifications contained in this section of the Report describe the overall nature and extent of the improvements. More detailed information regarding the specific plans and specifications associated with the Annexation Territory are on file in the Public Works Department and by reference are made part of this Report.
PART II — METHOD OF APPORTIONMENT
This section includes a discussion of the general and special benefits associated with the various improvements to be provided within the Annexation Territory (Benefit Analysis), which includes a discussion of the proportional costs of the special benefits and a separation of costs considered to be of general benefit (and therefore not assessed). This section of the Report also outlines the method of calculating each property’s proportional special benefit necessary to calculate the property’s annual assessment. This method of apportionment is consistent with the previously adopted method of apportionment outlined in the Consolidated Annual Engineer’s Report. 474
Palm Desert LLD No. 1 Engineer’s Report – Annexation of Tract 31377 Page 4 PART III — ZONE ANNEXATION BUDGET
This section contains an estimate of the annual costs to operate, maintain, and service the local improvements and appurtenant facilities within the Annexation Territory. The budget includes an estimate of the maintenance costs and incidental expenses including, but not limited to: labor, materials, utilities, equipment, and administration expenses as well as the collection of other appropriate funding authorized by the 1972 Act and deemed necessary to fully support the improvements. Those improvements and/or costs determined to be of general benefit shall be funded by a City contribution. If the proposed assessments are approved, the City Council at their discretion may provide a temporary advance (loan) to fund and expedite various capital improvement projects (repair and rehabilitation of the improvements) within the Annexation Territory, which is shown as a budgeted expenditure within the budget presented herein. This type of advance/loan would be paid back over time by the assessments utilizing the funds collected for the Capital Improvement Plan Fund. Ultimately, City staff shall make the determination of which improvements, and the extent of the services and activities that shall be provided based on available revenues.
PART IV — ASSESSMENT ROLL
The Assessment Roll contains a listing of all Assessor Parcel Numbers of the properties within the Annexation Territory and each parcel’s corresponding “Balloted Maximum Assessment.” The proposed assessment amounts balloted and to be levied and collected in Fiscal Year 2026/2027 for each parcel is based on the parcel’s calculated proportional special benefit as outlined in the Method of Apportionment (Part II of this Report) and the annual assessment rate established by the estimated Budget (Part III of this Report).
PART V — BOUNDARY DIAGRAM
This section of the Report contains a diagram showing the boundaries of the Annexation Territory, which incorporate the parcels determined to receive special benefits from the various District/Zone improvements. Parcel identification, the lines and dimensions of each lot, parcel and subdivision of land within the Annexation Territory (Tract 31377) are shown on the Riverside County Assessor's Parcel Maps and shall include any subsequent lot line adjustments or parcel changes therein. Reference is hereby made to the Riverside County Assessor’s Parcel Maps for a detailed description of the lines and dimensions of each lot and parcel of land within the Annexation Territory.
DISCLAIMER
If any section, subsection, sentence, clause, phrase, portion, zone, or subzone of this Engineer’s Report is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions of the Report and each section, subsection, subdivision, sentence, clause, phrase, portion, zone, or subzone thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, portions, zones, or subzones might subsequently be declared invalid or unconstitutional.
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Palm Desert LLD No. 1 Engineer’s Report – Annexation of Tract 31377 Page 5 PART I — PLANS AND SPECIFICATIONS
DISTRICT OVERVIEW
The territory within the District consists of lots or parcels of land within the City of Palm Desert and the boundaries of the District. The purpose of this District is to provide in part through annual assessments, funding for the ongoing operation, maintenance, and servicing of local landscaping and lighting improvements and associated appurtenances located within the public rights-of-way and dedicated landscape easements. Improvements currently provided within the District generally include but are not limited to:
Local street lighting (residential street lighting associated with the properties within the Zone and specific subdivisions).
Local landscaping improvements including parkways, perimeters, entryways, local medians, and internal landscaped amenities.
Special Zone services including tree trimming, graffiti and weed abatement and landscape maintenance of flood control areas (retention and detention basins).
The costs associated with the improvements authorized by the provisions of the 1972 Act are equitably spread among the benefiting parcels in proportion to the special benefit they receive.
Only parcels that receive special benefits from the improvements are assessed, and each Zone consists of parcels that benefit from those specific improvements.
Landscape improvements maintained by the District and associated with each Zone were either installed as a condition of development or were installed for the benefit of the properties assessed. The landscape improvements associated with each Zone may include but are not limited to: open space areas; medians; parkways; slopes; retention or detention basin areas; and public rights-of-way or easements that provide special benefits to the parcels. These improvements may include, but are not limited to: turf, ground cover, shrubs and trees, irrigation systems, decorative lighting, water features, entry monuments, drainage systems, hardscapes and associated appurtenances. Similar to landscape improvements, street lighting improvements funded through District assessments were installed for the benefit of properties within each of the Zones and the assessments provide for the maintenance, operation and energy costs related to those street light improvements.
LOCAL LANDSCAPING ZONES
In accordance with the 1972 Act, the District utilizes Zones to address variations in the nature, location, and extent of the improvements that provide special benefits to parcels in the District.
Within the boundaries of the District, parcels are assigned to benefit zones each of which is associated with a set of improvements and/or type of improvements that provide the same degree of benefit to properties within that Zone.
EXISTING DISTRICT ZONES OF BENEFIT
For Fiscal Year 2026/2027, the District is comprised of thirty-three (33) separate benefit zones (“Zones”), each funding specific improvements and services, as authorized pursuant to Chapter 1 Article 4, Section 22574 of the 1972 Act. A general description of the Zones follows. 476
Palm Desert LLD No. 1 Engineer’s Report – Annexation of Tract 31377 Page 6 Zone #2, Canyon Cove − Tracts 11636-1, 2, 3, and 4 and Tract 23485, generally located south of Deep Canyon Tennis Club, north of Haystack Road, west of Marrakesh Country Club, and east of Highway 74.
Zone #3, Vineyards − Tracts 12181-1 and 12181-2 on the west side of Portola Avenue. The streets within the Zone include Martini Court, Heitz Court, Mondavi Court, Callaway Court, Stony Hill Court, Masson Street, Krug Avenue, Sebastian Way, and San Pasqual Avenue/Rutledge Way.
Zone #4, Parkview Estates − Tract 8237, south of Magnesia Falls Drive, north of Fred Waring Drive, west of Deep Canyon Road, and east of Portola Avenue.
Zone #5, Cook and Country Club − Three (3) separate residential subdivisions identified as the following Sub-zones: Desert Mirage (Tract 25639), Primrose II (Tract 25436), and Sandcastles (Tract 21338-1).
Zone #6, Hovley Lane − Parcels within this Zone are located generally east of Monterey Avenue and west of Portola Avenue and include parcels and tracts along Hovley Lane West.
Zone #6 includes the following subdivisions and Sub-zones: Monterey Meadows (Tracts 21791 & 22741), La Paloma II (Tract 24773), Hovley Glen (Tract 25217), La Paloma III (Tract 29045), Hovley Estates (Tract 24591), Sandpiper Court (Tract 27370), Sonata I (Tract 23982), Hovley Court West (Tract 29585), Sonata II (Tracts 24254-1, -2, -3), Sandpiper West (Tract 29579), Hovley Collection (Tract 24603), Diamondback Road (Tract 29893), La Paloma I (Tract 24773- 1), and Palm Court (Tract 25373).
Zone #7, Waring Court − Tract 25304, north of Fred Waring Drive and east of Phyllis Jackson Lane.
Zone #8, Palm Gate − Tract 24287 located east of Deep Canyon Road, and north of Fred Waring Drive, on Coral Bells Circle, Daylily Circle, and Moss Rose Drive.
Zone #9, The Grove − Tract 24984 located south of Goleta Avenue and west of Deep Canyon Road.
Zone #11, Portola Place − Tract 27692 located south of Santa Rosa Way and east of Portola Avenue.
Zone #13, Palm Desert Country Club − Located generally south of Hovley Lane East, north of Fred Waring Drive, west of Warner Trail, and west of Washington Street and is commonly referred to as the Palm Desert Country Club area.
Zone #14, K & B at Palm Desert − Tracts 28258 and 28258-1 located north of Frank Sinatra Drive, west of Portola Avenue, east of Monterey Avenue and south of Gerald Ford Drive.
Zone #15, Canyon Crest − Tracts 25102-1 and 25102 generally located east of Deep Canyon Road, south of the Whitewater River Channel, north of Moss Rose Drive, and west of the Palm Desert High School.
Zone #16, Shepard Lane − Consists of six (6) separate residential subdivisions identified as Sub-zones, which are known and identified as: College View Estates I (Tract 29444), Sundance East (Tract 30503), College View Estates II (Tract 30087), Petunia I (Tract 30025), and Sundance West (Tract 30216), and Boulders (Tract 30030). 477
Palm Desert LLD No. 1 Engineer’s Report – Annexation of Tract 31377 Page 7 ZONE ANNEXATION TERRITORY FISCAL YEAR 2026/2027
Tract 31377
The Annexation Territory, also referred to as Tract 31377, is generally located along Hovley Lane West, east of Monterey Avenue, west of Portola Avenue and includes the twenty (20) parcels facing Corte Placitas. The improvements consist of 3,000 square feet of parkway landscaping, tree pruning, street lighting, and a landscaped retention basin.
Both the street lighting and landscape improvements provided within the Annexation Territory were installed as a condition of development. The HOA for Corte Placitas (Tract 31377) requested the transition of the existing landscape maintenance agreement to the City.
Furthermore, the incorporation of the Annexation Territory, as a new Sub-zone, will allow for a consistent and cohesive maintenance structure throughout Zone #6.
Note: For Fiscal Year 2026/2027, the City will advance $20,000 to the Annexation Territory for renovation and repair costs. The property owners will repay this amount over a ten (10) year period. Upon repayment, this amount will be removed from the budget; however, the total annual assessment may be adjusted in accordance with applicable annual increases. 478
Palm Desert LLD No. 1 Engineer’s Report – Annexation of Tract 31377 Page 8 PART II — METHOD OF APPORTIONMENT
Part 2 of Division 15 of the Streets and Highways Code, the 1972 Act, permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements, which include the acquisition, construction, installation and servicing of public lights, landscape improvements and appurtenant facilities. The 1972 Act requires that the cost of these improvements be levied 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 the designation of District Zones reflect the composition of parcels within the District and the improvements and 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 proposed improvements have been identified and allocated to properties within the Annexation Territory based on special benefit. The improvements provided and for which properties are to be assessed are local landscaping and lighting improvements and related amenities that were installed in connection with the development of the properties and/or would otherwise be required for the development of properties within the Annexation Territory. The assessments and method of apportionment are based on the premise that these improvements would otherwise not have been required without the development of those parcels within the Annexation Territory.
Article XIII D Section 2i 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 4a 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 will 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 479
Palm Desert LLD No. 1 Engineer’s Report – Annexation of Tract 31377 Page 9 being provided. No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.”
SPECIAL BENEFITS
The ongoing maintenance and servicing of the streetlights, landscaped areas and appurtenant facilities within the Annexation Territory provide aesthetic benefits to the properties and a more pleasant environment to walk, drive, and live. The primary function of these improvements and related amenities is to serve as an aesthetically pleasing enhancement and green space for the benefit of the immediately surrounding properties and developments for which the improvements were constructed and installed, and/or were facilitated by the development of properties. These improvements are an integral part of the physical environment associated with the parcels within the Annexation Territory, as well as the Sub-zones that comprise Zone #6, and while some of these improvements may in part be visible to properties outside the Annexation Territory or in part proportionately shared with properties in adjacent Zones, collectively if these improvements are not properly maintained, it is the parcels within the Annexation Territory that would be aesthetically burdened. These parcels receive tangible and distinct benefits through their connection to a cohesive and uniformly maintained neighborhood.
The landscape improvements provided by the District may include landscaped medians, parkways, entryways, slopes and appurtenant facilities. Street lighting improvements may include energy costs and necessary maintenance of the facilities related thereto. The annual assessments outlined in this Report are proposed to cover the estimated costs to provide necessary service, operation, administration and maintenance required annually to keep these improvements in a healthy, vigorous and satisfactory condition.
The special benefits associated with the local landscaping improvements are specifically:
Enhanced desirability of properties through association with the improvements. Improved aesthetic appeal of properties within the District/Zones providing a positive representation of the area.
Enhanced adaptation of the urban environment within the natural environment from adequate green space and landscaping.
Environmental enhancement through improved erosion resistance, and dust and debris control.
Increased sense of pride in ownership of property within the District/Zones resulting from well-maintained improvements associated with the properties. Reduced criminal activity and property-related crimes (especially vandalism) against properties in the District through well-maintained surroundings and amenities including abatement of graffiti.
Enhanced environmental quality of the parcels within the District/Zones by moderating temperatures, providing oxygenation and attenuating noise.
The special benefits of street lighting are the convenience, safety and security of property, improvements and goods. Specifically:
Enhanced deterrence of crime and the aid to police protection. Increased nighttime safety on roads and highways.
480
Palm Desert LLD No. 1 Engineer’s Report – Annexation of Tract 31377 Page 10 Improved ability of pedestrians and motorists to see. Improved ingress and egress to property.
Reduced vandalism and other criminal acts and damage to improvements or property. Improved traffic circulation and reduced nighttime accidents and personal property loss. Increased promotion of business during nighttime hours in the case of commercial properties.
GENERAL BENEFIT
Any improvement and the associated costs that are considered a general benefit to properties outside the Annexation Territory or to the public at large have been identified and eliminated from the annual assessments. In making this determination it should be noted that parkway, perimeter landscaping and interior landscaping within the City are either funded or maintained by individual property owners or through some type of association, as is the case for the Annexation Territory (Tract 31377). Furthermore, there are instances where this type of landscaping is maintained and funded through a special district. The City does not usually maintain these types of improvements from General Fund Revenues and, like other similar improvements within the City, the ongoing maintenance of these improvements is a special benefit to the properties associated with the improvements.
In addition to the special benefits received by the parcels within the District/Zones, there are incidental general benefits conferred by the improvements.
The proper maintenance of landscaping and appurtenant facilities within the District/Zones will not only control dust from blowing into properties within the District/Zones but will also control dust from blowing into properties outside of the district boundaries. The spraying and treating of landscaping within the District/Zones for disease reduces the likelihood of insect infestation and other diseases spreading to landscaping located throughout other properties within the City.
Finally, the proper maintenance of landscaping and ornamental structures provides a positive visual experience to persons passing by, or driving through, the District/Zone. The abovementioned items constitute incidental general benefits conferred by the improvements.
The total benefits are a combination of the special benefits to the parcels within the District and the general benefits to the public at large and to the adjacent property owners. The portion of the total lighting and landscape maintenance costs which are associated with general benefits will not be assessed to the parcels in the District but will be paid for by other City funds.
Because the landscaping is located immediately adjacent to properties within the Annexation Territory and is maintained solely for the benefit of the properties within the area, any benefit received by properties outside of the Annexation Territory is merely incidental. It is estimated that the general benefit portion of the benefit received from the improvements is less than one (1) percent of the total benefit.
ASSESSMENT METHODOLOGY
Pursuant to the 1972 Act, the costs of the District may be apportioned by any formula or method that fairly distributes the net amount to be assessed, among assessable parcels in proportion to the estimated benefits to be received by each such parcel from the improvements. The apportionment of costs used for each Zone should reflect the composition of the parcels, and the improvements and services provided based on each parcel’s estimated special benefit. 481
Palm Desert LLD No. 1 Engineer’s Report – Annexation of Tract 31377 Page 11
EQUIVALENT BENEFIT UNITS
To assess benefits equitably, it is necessary to relate the different type of parcel improvements to each other. The Equivalent Benefit Unit method of assessment apportionment uses the singlefamily home as the basic unit of assessment. A single-family home equals one (1) Equivalent Benefit Unit (EBU). Every other land use is converted to EBUs based on an assessment formula that equates the property’s specific development status, type of development (land use), and size of the property, as compared to a single-family home (SFR).
The EBU method of apportioning benefit is typically seen as the most appropriate and equitable assessment methodology for districts formed under the 1972 Act, as the benefit to each parcel from the improvements are apportioned as a function of land use type, size and development.
Assessed parcels within Zones 2, 3, 4, 5, 6, 7, 8, 9, 11, 14, 15 and 16 are single-family residential parcels and the application of the EBU method of spread results in an equal assessment.
Each parcel’s EBU correlates the parcel’s special benefit received as compared to the other parcels in the Zone.
Parcel Type EBU x Acres or Units = Parcel EBU
Total Balance to Levy in Zone / Total EBU in Zone = Levy per EBU Parcel EBU x Levy per EBU = Parcel Levy Amount
Exempt parcels include easements and landscaped areas or common areas.
ANNUAL INFLATIONARY ADJUSTMENT (ASSESSMENT RANGE FORMULA) It is recognized that the cost of providing for the improvements described in “Part I — Plans and Specifications” of this Report will inevitably increase over time as a result of inflation and that any “new or increased assessments” require certain noticing and balloting requirements pursuant to Article XIII D of the California Constitution (Proposition 218). However, Government Code Section 54954.6(a) provides that a “new or increased assessment” does not include “an assessment that does not exceed an assessment formula or range of assessments...previously adopted by the agency or approved by the voters in the area where the assessment is imposed.” This definition of a new or increased assessment is reaffirmed in the Proposition 218 Omnibus Implementation Act, Government Code Section 53753.5.
In order to assure that the improvement funding is sufficient in the future to address the ongoing maintenance and replacement cost increases that naturally occur over time due to inflation, the special benefit assessments being presented to the property owners in the Ballot Proceeding conducted in connection with this Report includes an annual inflationary adjustment (Assessment Range Formula). This inflationary adjustment formula provides for the Fiscal Year 2026/2027 maximum assessments (initial maximum assessment rate) established herein for the Annexation Territory to increase by the Consumer Price Index (CPI) for All Urban Consumers for the Riverside-San Bernardino-Ontario area, as published by the U.S. Department of Labor, Bureau of Labor Statistics.
482
Palm Desert LLD No. 1 Engineer’s Report – Annexation of Tract 31377 Page 12 The adoption of the maximum assessment rates and the Assessment Range Formula described herein does not mean that the annual assessments will necessarily increase each fiscal year, nor does it absolutely restrict the assessments to the annually adjusted maximum assessment rates. Although the maximum assessment rates that may be levied shall be increased each fiscal year, the actual amount to be assessed will be based on the Balance to Levy for that fiscal year.
If the calculated assessment is less than the adjusted maximum assessment, then the calculated assessment may be approved by the City Council for collection. If the calculated assessment (based on the proposed budget) is greater than the adjusted maximum assessment for that fiscal year, then it would be considered an increased assessment and would require property owner approval through another protest ballot proceeding before imposing such an increase.
Otherwise, it would be necessary to reduce the budget or provide a contribution from the City to reduce the Balance to Levy (amount to be assessed) to an amount that can be supported by an assessment rate less than or equal to the adjusted maximum assessment rate authorized for that fiscal year.
The Assessment Range Formula shall be applied to the maximum assessment rates for the Annexation Territory commencing in Fiscal Year 2027/2028 and shall be applied in each subsequent fiscal year unless the City Council formally suspends its application. The updated budget and Zone information will be included in the Fiscal Year 2027/2028 annual Engineer’s Report.
Each year the City shall compute the percentage difference between the CPI on January 1, of each year and the CPI for the previous January 1, or a similar time period, as determined by the Bureau of Labor Statistics for all urban consumers for the Riverside-San Bernardino-Ontario Area. This percentage difference shall then establish the range of increased assessments allowed based on CPI. Should the Bureau of Labor Statistics revise such index or discontinue the preparation of such index, the City shall use the revised index or comparable system as approved by the City Council for determining fluctuations in the cost of living.
If CPI is less than three percent (3.0%), then the allowable adjustment to the maximum assessment for each Zone may be by CPI. If CPI is greater than three percent (3.0%), then the allowable adjustment to the proposed assessment for each Zone may be three percent (3.0%). 483
Palm Desert LLD No. 1 Engineer’s Report – Annexation of Tract 31377 Page 13 PART III — ZONE ANNEXATION BUDGET
The budgets and assessments outlined herein for the Annexation Territory are based on the City’s estimate of the expenses and related funding necessary for the operation, maintenance and servicing of the District improvements identified in Part I of this Report.
This budget represents an estimate of the special benefit expenses anticipated to be collected for Fiscal Year 2026/2027 at the time this Report was prepared and establishes the maximum assessment rates to be balloted and approved by the property owner(s) of record within the Annexation Territory as part of the Ballot Proceeding.
BUDGET ITEM
Annexation
Tract 31377
Zone 06 CP
Maintenance Costs $5,820
Landscape Utilities (Water/Electrical) 600
Landscape Extras (Materials/Special Maintenance) 400
Tree Pruning 500
Street Lighting 200
Annual Direct Costs (Subtotal) $7,520
District Administration $436
County Administration Fees 106
Administration Costs (Subtotal) $541
TOTAL OPERATING COSTS $8,061
Reserve Fund Collection/(Contribution) $80
CIP Collection/Contribution1 $2,000
General Benefit Contribution (General Fund) 0
General Fund Contribution (General Fund) 0
Levy Adjustments (Subtotal) $2,080
BALANCE TO LEVY $10,141
District Statistics
Active Parcels 20
Parcels Levied 20
Total Equivalent Benefit Units (EBU) 20.00
Fiscal Year 2026/2027 Rate per EBU $507.06
Fiscal Year 2026/2027 Maximum Rate per EBU $507.06
RESERVE FUND
Estimated Beginning Reserve Balance - June 30, 2026 $1,494 Reserve Fund Collection/(Contribution) 80
Estimated Ending Reserve Balance - June 30, 2027 $1,574
CAPITAL IMPROVEMENT PLAN FUND
Estimated Beginning CIP Fund Balance - June 30, 2026 $0 CIP Fund Collection/(Contribution) 2,000
Estimated Ending CIP Fund Balance - June 30, 2027 $2,000 1 Funds used to repay advance anticipated to be paid in full by FY 2036/2037. 484
Palm Desert LLD No. 1 Engineer’s Report – Annexation of Tract 31377 Page 14 PART IV — ASSESSMENT ROLL
The Assessment Roll containing the proposed new/increased maximum assessment for Fiscal Year 2026/2027 is provided below. Each parcel listed on the Assessment Roll is currently shown and illustrated on the County Assessor’s Roll and the County Assessor’s Parcel Number Maps (APN maps). These records are, by reference, made part of this Report and shall govern all details concerning the description of the lots or parcels. 622-300-040 40399 CORTE PLACITAS SFR 1.00 $507.06 $507.06 622-300-041 40413 CORTE PLACITAS SFR 1.00 $507.06 $507.06 622-300-042 40427 CORTE PLACITAS SFR 1.00 $507.06 $507.06 622-300-043 40441 CORTE PLACITAS SFR 1.00 $507.06 $507.06 622-300-044 40455 CORTE PLACITAS SFR 1.00 $507.06 $507.06 622-300-045 40469 CORTE PLACITAS SFR 1.00 $507.06 $507.06 622-300-046 40483 CORTE PLACITAS SFR 1.00 $507.06 $507.06 622-300-047 40497 CORTE PLACITAS SFR 1.00 $507.06 $507.06 622-300-048 40511 CORTE PLACITAS SFR 1.00 $507.06 $507.06 622-300-049 40525 CORTE PLACITAS SFR 1.00 $507.06 $507.06 622-300-050 40532 CORTE PLACITAS SFR 1.00 $507.06 $507.06 622-300-051 40518 CORTE PLACITAS SFR 1.00 $507.06 $507.06 622-300-052 40504 CORTE PLACITAS SFR 1.00 $507.06 $507.06 622-300-053 40490 CORTE PLACITAS SFR 1.00 $507.06 $507.06 622-300-054 40476 CORTE PLACITAS SFR 1.00 $507.06 $507.06 622-300-055 40462 CORTE PLACITAS SFR 1.00 $507.06 $507.06 622-300-056 40448 CORTE PLACITAS SFR 1.00 $507.06 $507.06 622-300-057 40434 CORTE PLACITAS SFR 1.00 $507.06 $507.06 622-300-058 40420 CORTE PLACITAS SFR 1.00 $507.06 $507.06 622-300-059 40406 CORTE PLACITAS SFR 1.00 $507.06 $507.06 Totals 20.00 $10,141.20
Situs Address
Assessor's
Parcel
Number
EBU
Maximum
Assessment
Rate
Balloted
Maximum
Assessment
Land
Use
Code
Note, the budget on page 13 is rounded to the nearest dollar. 485
Palm Desert LLD No. 1 Engineer’s Report – Annexation of Tract 31377 Page 15 PART V — BOUNDARY DIAGRAM
The following Boundary Map Diagram incorporates the lots and parcels of land within the Annexation Territory for Fiscal Year 2026/2027, as the same existed at the time this Report was prepared.
486
City of Palm Desert Staff Report
Meeting Date: July 9, 2026
Prepared By: Maria Murillo, Management Analyst
Randy Chavez, Director of Public Works
Department: Public Works
Subject: Declare the Results of the Property Owner Protest Proceeding and Order the Renewal of the President’s Plaza III Property and Business Improvement District and the Levy and Collection of Assessments for Fiscal Year 2026/2027 Recommendation
1. Adopt a resolution entitled “A Resolution of the City Council of the City of Palm Desert, California, Declaring the Results of a Property Owner Protest Proceeding for the President’s Plaza III Property and Business Improvement District and Approving Certain Related Actions.”
2. Adopt a resolution entitled “A Resolution of the City Council of the City of Palm Desert, California, Ordering the Renewal of the President’s Plaza III Property and Business Improvement District, Approving and Adopting the Management District Plan and Engineer’s Report, and Authorizing the Levy and Collection of Assessments for Fiscal Year 2026-27.”
Executive Summary
This item is the final step in the renewal process for the President’s Plaza III Property and Business Improvement District. The District funds the operation, maintenance, and related administrative costs associated with shared parking lot improvements and services that serve the assessed commercial parcels within the District, including parking lot landscaped areas, lighting, and street sweeping.
On May 14, 2026, the City Council initiated renewal proceedings, preliminarily approved the Management District Plan and Engineer’s Report, called for an assessment ballot proceeding, and set the public hearing for July 9, 2026. At the public hearing, property owners and members of the public may provide comments before the City Clerk tabulates the returned property owner ballots.
If the ballot results indicate that a majority protest does not exist, the City Council may order renewal of the District for a new five-year term beginning Fiscal Year 2026-27 and continuing through Fiscal Year 2030-31. If renewed, the County of Riverside will levy and collect the assessments through the property tax roll on behalf of the City.
Background
The President’s Plaza III Property and Business Improvement District was originally formed beginning in Fiscal Year 2001-02 to fund improvements and activities benefiting assessed 487
parcels within the District. Since its establishment, the District has been renewed four times.
Fiscal Year 2025-26 is the final year of the current term.
The proposed renewal would continue the District for an additional five-year term from Fiscal Year 2026-27 through Fiscal Year 2030-31. Renewal of the District requires property owner petition support, notice, a public hearing, and a property owner protest ballot proceeding in accordance with the Property and Business Improvement District Law of 1994 and Article XIII D of the California Constitution.
The District includes sixteen assessed commercial parcels in the President’s Plaza III area.
The District is generally located south of Palm Desert Drive at Highway 111, north of El Paseo, west of Sage Lane, and east of Old Highway 74. The District also includes the Palm Desert Parking Lot, a lease parcel to the City of Palm Desert located south of Highway 111, east of New Highway 74, and west of Old Highway 74.
District-funded improvements and services include parking lot landscaped areas, parking lot lighting facilities, and debris removal through regular mechanical sweeping of the shared parking lot. These services support the continued operation, appearance, access, and functionality of the shared parking facilities serving the assessed commercial parcels.
On May 14, 2026, the City Council adopted resolutions initiating the renewal proceedings and declaring its intention to renew the District and levy and collect assessments, subject to the required public hearing and ballot process.
Analysis
The Fiscal Year 2026-27 Management District Plan and Engineer’s Report provides the basis for the proposed renewal. The report describes the District boundaries, the improvements and activities to be funded, the method of apportionment, the proposed annual assessments, and the five-year budget for the renewal term.
Assessment costs are apportioned to assessed parcels based on parcel square footage. This method reflects that the assessed parcels use and are served by the centralized parking facility and associated improvements. Each parcel’s assessment is based on its proportional share of the costs associated with the improvements and services funded through the District.
For Fiscal Year 2026-27, the Management District Plan and Engineer’s Report identifies assessable direct costs of $95,520, assessable indirect costs of $15,699, and a total proposed assessment of $111,219. The total proposed assessment rate is $0.2450 per square foot.
The report also identifies that 96 percent of total District costs are attributable to benefit received by assessed parcels. The remaining 4 percent is identified as general benefit and will be funded by the City from other available revenue sources. Costs identified as general benefit are not included in the assessment calculations and are not assessed to District parcels.
The proposed renewal also allows annual assessment adjustments of up to 3 percent per year during the five-year renewal term, not to exceed the maximum assessment levels identified in 488
the Management District Plan and Engineer’s Report. Actual annual adjustments may range from 0 percent to 3 percent based on service needs and available District funding.
At the conclusion of the public hearing, the City Clerk, or designated representative, will tabulate the returned property owner ballots. If the ballot results indicate that a majority protest does not exist, the City Council may adopt the resolution ordering renewal of the District, approving and adopting the Management District Plan and Engineer’s Report, and authorizing the levy and collection of assessments for Fiscal Year 2026-27.
Approval of the renewal will allow the District to continue funding the maintenance and operation of the shared parking lot improvements and services for the assessed parcels within President’s Plaza III. If the renewal is not approved, the District will expire and the assessment revenues used to fund these services will no longer be available.
Legal Review
This report has been reviewed by the City Attorney’s Office.
Financial Impact
If renewed, PBID III will continue to fund District improvements and services through assessments levied on properties within President’s Plaza III. For Fiscal Year 2026-27, the proposed property owner assessment totals $111,219, which includes $95,520 in direct costs and $15,699 in indirect costs, as identified in the Management District Plan and Engineer’s Report.
The Engineer’s Report also identifies a four percent general benefit component that will be funded by the City and not assessed to District parcels. Assessment revenues will be restricted for use within the District and may only be used for the improvements and services identified in the Management District Plan and Engineer’s Report, including landscape maintenance, parking lot lighting, street sweeping, administration, and reserve-related costs.
Assessment revenues and the City-funded general benefit contribution is included in the approved Fiscal Year 2026-27 Financial Plan in account numbers: 2820000-3553000 and 2820000-3910000.
Attachments
1. Resolution – Ordering the Renewal
2. Resolution – Declaring the Results of Renewal
3. FY 2026-27 Management District Plan and Engineer’s Report – PBID III Conflict of Interest Awareness Checklist
Note: This checklist is informational only and does not constitute a legal determination. Each Councilmember remains responsible for identifying, disclosing, and evaluating any disqualifying interests under the Political Reform Act and applicable FPPC regulations. 489
1. Site-Specific Property Interest
Does this item involve a project site or other identifiable real property? ☒ Yes
☐ No
If yes, identify the project site: President’s Plaza III area. The District is generally located south of Palm Desert Drive at Highway 111, north of El Paseo, west of Sage Lane, and east of Old Highway 74. The District also includes the Palm Desert Parking Lot, a lease parcel to the City of Palm Desert located south of Highway 111, east of New Highway 74, and west of Old Highway 74.
Councilmembers should consider whether they own, lease, or hold interests in real property within 1,000 feet of the project site. (Gov. Code § 87103(b); FPPC Reg. 18702.2).
2. SB 1439 / Gov. Code § 84308 Applicability (Campaign Contributions) Does this item involve a license, permit, other entitlement for use, or a contract or franchise agreement that is not competitively bid, a labor agreement, or a personal employment contract?
☐ Yes
☒ No
If yes, identify the applicant(s), appellant(s), party, or participant(s):
Councilmembers should review campaign contributions received within the prior 12 months from parties or participants to the proceeding and must not accept contributions over $500 from those parties for 12 months following the final decision. (Gov. Code § 84308). 490
Resolution No. 2026-____
Resolution of the City Council of the City of Palm Desert, California Ordering the Renewal of the President’s Plaza III Property and Business Improvement District and the Levy and Collection of Assessments for Said District for Fiscal Year 2026/2027
The City Council of the City of Palm Desert, California (hereafter referred to as the “City Council”) hereby finds, determines, resolves and orders as follows:
Whereas, the City Council, pursuant to the provisions of the Property and Business Improvement District Law of 1994, Part 7 of Division 18 of the Streets and Highways Code of California (hereafter referred to as the “Act”) did by previous Resolutions initiate proceedings and order the preparation of a Management District Plan and Engineer’s Report (hereafter referred to collectively as “Report”) in connection with the renewal of the President’s Plaza III Property and Business Improvement District (hereafter referred to as the “District”), and the establishment of maximum assessments to pay for the maintenance and services of landscaping, lighting, parking lot sweeping and all appurtenant facilities and operations related thereto; and
Whereas, the City Council, pursuant to the Act did by previous Resolution appoint an owners’ association and this owners’ association shall cause to be prepared an annual Report regarding the District for the City Council’s approval; and Whereas, the City Council called and duly held a property owner protest ballot proceeding for the District pursuant to the provisions of the Act and the California Constitution Articles XIIIC and XIIID, for the purpose of presenting to the qualified property owners within the District the annual levy of assessments and a maximum annual assessment for Fiscal Years 2026/2027 through 2030/2031 for the costs and expenses associated with and authorized for the District as outlined in the Report, including the authority to adjust annual assessments during the five-year renewal term by an amount ranging from zero percent (0%) to three percent (3%) per year, provided that assessments shall not exceed the maximum assessment levels set forth in the Management District Plan and Engineer’s Report; and,
Whereas, the protest proceeding was conducted, with ballots presented to qualified property owners of the District for receipt by the City Clerk on July 9, 2026, weighted according to the proportional financial obligation of the affected property, and the tabulation of said protest ballots returned by the property owners indicated approval of the assessment and maximum assessment allowed for Fiscal Years 2026/2027 through 2030/2031; and,
Now, therefore, be it resolved by the City Council of the City of Palm Desert, California, as follows:
491
Resolution No. 2026-____
Section 1. Recitals.
The above recitals are true and correct and are incorporated herein by this reference. The properties included in the District renewed by this Resolution are subject to any amendments to Part 7 of Division 18 of the California Streets and Highways Code.
Section 2. Intention to Renew District.
The City Council desires to renew the President’s Plaza III Property and Business Improvement District and to levy annual assessments for a duration of five years pursuant to the provisions of the Act and has previously adopted Resolution No. ____ , on May 14, 2026, titled “A Resolution of the City Council of the City of Palm Desert, California, Declaring the City’s Intention to Renew the President’s Plaza III Property and Business Improvement District and to Levy and Collect Assessments Therein, and to Call for an Assessment Ballot Proceeding to Submit, to Qualified Property Owners within such District, the Question of Levying Assessments for such District, Commencing Fiscal Year 2026/2027.” A brief description of the improvements and activities to be provided by the District includes the maintenance and services of landscaping, lighting, parking lot sweeping and all appurtenant facilities and operations related thereto. No bonds shall be issued by the District. The exterior boundaries of the District and a detailed list of the maintenance and services to be provided are included in the Management District Plan and Engineer’s Report which are on file with the City Clerk and are incorporated herein by this reference.
Section 3. Assessments.
The City Council hereby declares pursuant to the Act and the method of apportionment described in the Management District Plan and Engineer’s Report, that said annual assessments shall not exceed the maximum assessment approved by the property owners and shall commence with the first fiscal year beginning July 1, 2026 and ending June 30, 2027 to pay the costs and expenses of operating, maintaining and servicing said improvements located within the District. For Fiscal Years 2027/2028 through 2030/2031, the annual assessments may be adjusted by an amount ranging from zero percent (0%) to three percent (3%) per year, as determined in accordance with the Management District Plan and Engineer’s Report, provided that the assessments shall not exceed the maximum assessment levels approved by the property owners and set forth in the Report.
The assessment shall be imposed on the property owners and amount of the proposed assessments is included in the Engineer’s Report.
Section 4. Protest Determination.
Following notice duly given, the City Council has held a full and fair Intent Meeting on May 14, 2026, and a Public Hearing on July 9, 2026 at its regular meeting place being the City Council Chamber located at 73-510 Fred Waring Dr., Palm Desert, CA, in connection therewith; the levy and collection of assessments, and considered all oral and written statements, protests and communications made or filed by interested persons. The City 492
Resolution No. 2026-____
Clerk has tabulated the ballots and determined that the property owners have approved the annual levy and collection of assessments and a maximum assessment for Fiscal Years 2026/2027 through 2030/2031 as outlined in the combined Management District Plan and Engineer’s Report, in compliance with California Constitution Articles XIIIC and XIIID.
Section 5. Findings.
Based upon its review of the Management District Plan and Engineer’s Report, a copy of which has been presented to the City Council, and which has been filed with the City Clerk, the City Council hereby finds and determines that:
a) The territory of land within the District will receive special benefits from the operation, maintenance and servicing of the improvements and appurtenant facilities located within the boundaries of the District. b) District includes all of the lands so benefited.
c) The term of the District is five years beginning in Fiscal Year 2026/2027 and ending in Fiscal Year 2030/2031 unless renewed after this time. d) The net amount to be assessed upon the lands within the District in accordance with the proposed budget for the fiscal year commencing July 1, 2026 and ending June 30, 2027 is $111,219.22 and is apportioned by a formula and method which fairly distributes the net amount among all eligible parcels in proportion to the special benefits to be received by each parcel from the improvements and services. e) The assessments so described in the Management District Plan and Engineer’s Report are consistent with the assessments so approved by the property owners within the District.
Section 6. Report Approval.
The Management District Plan, Engineer’s Report and assessments as presented to the City Council and on file in the office of the City Clerk are hereby confirmed as filed, including the five-year maximum assessment schedule and the annual assessment adjustment authority of up to three percent (3%) per year for Fiscal Years 2027/2028 through 2030/2031, as set forth therein.
Section 7. Collection of Assessments.
The City Council hereby orders the proposed improvements to be made, and the levy and collection of annual assessments to pay for those improvements to be presented to the County Auditor/Controller of Riverside commencing with Fiscal Year 2026/2027. The County Auditor/Controller shall enter on the County Tax Roll opposite each parcel of land the amount of levy, and such levies shall be collected at the same time and in the same manner as the County taxes are collected. After collection by the County, the net amount of the levy shall be paid to the City Treasurer.
493
Resolution No. 2026-____
Section 8. Restricted Use of Assessment Money.
The City Treasurer shall deposit all money representing assessments collected by the County for the District to the credit of a fund for the President’s Plaza III Property and Business Improvement District, and such money shall be expended only for the improvements described in the Management District Plan and Engineer’s Report.
Section 9. Levy of Assessments.
The adoption of this Resolution constitutes the District levy for the Fiscal Year commencing July 1, 2026 and ending June 30, 2027.
Section 10. Direction to City Clerk.
The City Clerk is hereby authorized and directed to file the levy with the County Auditor upon adoption of this Resolution.
Section 11. Effective Date.
This Resolution shall become effective immediately upon its adoption. 494
Resolution No. 2026-____
Adopted on .
Evan Trubee
Mayor
Attest:
Anthony J. Mejia
City Clerk
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that Resolution No. 2026-____ is a full, true, and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Desert on __, by the following vote:
Ayes:
Noes:
Absent:
Abstained:
Recused:
In witness whereof, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on .
495
Resolution No. 2026-____
Anthony J. Mejia
City Clerk
496
Resolution No. 2026-____
A Resolution of the City Council of the City of Palm Desert, California, Declaring the Results of a Property Owner Protest Proceeding for the Renewal of the President’s Plaza III Property and Business Improvement District and Approving Certain Related Actions
The City Council of the City of Palm Desert, California (hereafter referred to as the “City Council”) hereby finds, determines, resolves and orders as follows:
Whereas, the City Council called and duly held a property owner protest proceeding for the renewal of the President’s Plaza III Property and Business Improvement District (hereafter referred to as the “District”) pursuant to the provisions of the Property and Business Improvement District Law of 1994, Part 7 of Division 18 of the Streets and Highways Code of California (hereafter referred to as the “Act”) and the California Constitution Articles XIIIC and XIIID, for the purpose of presenting to the qualified property owners within the District the annual levy of assessments and a maximum annual assessment for the five-year renewal term commencing Fiscal Year 2026/2027 and continuing through Fiscal Year 2030/2031 to fund the costs and expenses associated with the maintenance and operation of landscaping, lighting, street sweeping and all appurtenant facilities related thereto; and,
Whereas, the property owners of record within the District as of the close of the Public Hearing held on July 9, 2026, did cast their ballots, the results of which are illustrated below:
Total Ballots Cast Yes Total No Total
$ ____________ $ ____________ $ ____________
Now, therefore, be it resolved by the City Council of the City of Palm Desert, California, as follows:
Section 1. Recitals.
The above recitals are true and correct and are incorporated herein by this reference.
Section 2. Proceedings.
The protest proceeding was conducted, with ballots presented to qualified property owners of the District for receipt by the City Clerk on July 9, 2026, weighted according to the proportional financial obligation of the affected property.
Section 3. Canvass of Ballots.
497
Resolution No. 2026-____
The results of the tabulation of the valid property owner protest ballots returned by the property owners within said District, prior to the conclusion of the Public Hearing and property owner protest proceeding held for the District on July 9, 2026, is hereby confirmed and made public record.
Section 4. Ballot Tabulation.
The tabulation of the valid property owner protest ballots returned by the property owners within said District indicates approval of the assessment and maximum assessment allowed for the five-year renewal term commencing Fiscal Year 2026/2027 and continuing through Fiscal Year 2030/2031. Therefore, the City Council is hereby authorized to take the necessary steps to levy the assessments as approved.
Section 5. Official Declaration of Results.
The City Clerk is hereby directed to enter this Resolution into the minutes of the City Council, which shall constitute the official declaration of the result of such property owner protest proceeding.
Section 6. Certification.
This Resolution shall become effective immediately upon its adoption and the City Clerk shall certify the adoption of this Resolution.
Section 7. Effective Date.
This Resolution shall become effective immediately upon its adoption. 498
Resolution No. 2026-____
Adopted on .
Evan Trubee
Mayor
Attest:
Anthony J. Mejia
City Clerk
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that Resolution No. 2026-____ is a full, true, and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Desert on __, by the following vote:
Ayes:
Noes:
Absent:
Abstained:
Recused:
In witness whereof, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on .
Anthony J. Mejia
City Clerk
499
500
CITY OF PALM DESERT
President’s Plaza III Property and
Business Improvement District Renewal
MANAGEMENT DISTRICT PLAN AND
ENGINEER’S REPORT
FISCAL YEAR 2026/2027 TO 2030/2031
INTENT MEETING: MAY 14, 2026
PUBLIC HEARING: JULY 9,2026
27368 Via Industria
Suite 200
Temecula, CA 92590
T 951.587.3500 | 800.755.6864
F 951.587.3510
www.willdan.com
501
ENGINEER'S REPORT AFFIDAVIT
City of Palm Desert
Presidents’ Plaza III
Property and Business Improvement District
Renewal of the District and Annual Assessments
City of Palm Desert
Riverside County, State of California
This Report describes the District and the proposed improvements, budget, method of assessment apportionment, and the parcels to be assessed commencing in Fiscal Year 2026/2027 for a period of five (5) fiscal years, as they exist at the time of the adoption of the Resolution of Intention. Reference is hereby made to the Riverside County Assessor’s maps for a detailed description of the boundaries and dimensions of the parcels within the District. The undersigned respectfully submits this Report as directed by the City Council.
Dated this ____________ day of ______________, 2026.
Willdan Financial Services
Assessment Engineer
On Behalf of the City of Palm Desert
By: ________________________________
Stacee Reynolds
Principal Consultant
By: ________________________________
Tyrone Peter
R. C. E. # C81888
18th May
502
TABLE OF CONTENTS
INTRODUCTION ..................................................................................................................................... 1 PART I — DISTRICT RENEWAL PROCESS............................................................................................... 3 ASSESSMENT COLLECTION ............................................................................................................... 3 PART II — DESCRIPTION OF THE DISTRICT ............................................................................................ 4 DISTRICT BOUNDARY........................................................................................................................ 4 IMPROVEMENTS AND ACTIVITIES ....................................................................................................... 4 PART III — BENEFITS OF THE IMPROVEMENTS AND ACTIVITIES............................................................... 5 SPECIAL BENEFIT ............................................................................................................................. 5 GENERAL BENEFIT............................................................................................................................ 6 PART IV — METHOD OF APPORTIONMENT............................................................................................. 7 METHOD OF APPORTIONMENT RATIONALE......................................................................................... 7 PARKING LOT IMPROVEMENTS AND SERVICES ................................................................................... 7 METHOD OF APPORTIONMENT CALCULATIONS................................................................................... 7 APPORTIONMENT OF DIRECT COSTS ................................................................................................. 7 APPORTIONMENT OF INDIRECT (ADMINISTRATION/RESERVE) COSTS .................................................. 8 TOTAL ANNUAL ASSESSMENT ........................................................................................................... 8 ANNUAL BUDGET ADJUSTMENTS....................................................................................................... 9 PART V — DISTRICT BUDGET ............................................................................................................. 10 Description of Budget Items.......................................................................................................... 11 DIRECT BENEFIT COSTS ................................................................................................................. 11 INDIRECT BENEFIT COSTS (ADMINISTRATION/RESERVES) ................................................................ 11 LEVY BREAKDOWN ......................................................................................................................... 12 DISTRICT STATISTICS ..................................................................................................................... 12 PART VI — ASSESSMENT DIAGRAM .................................................................................................... 13 PART VII — ASSESSMENT ROLL ......................................................................................................... 15 503
2026/2027 President’s Plaza III Property and Business Improvement District Page 1
INTRODUCTION
The City of Palm Desert (“City”) formed and established the President’s Plaza III Property and Business Improvement Assessment District (“District”) beginning in Fiscal Year 2001/2002 to provide improvements and activities that confer special benefits upon real property within the boundaries of the District. The District was established and levied pursuant to the Property and Business Improvement District Law of 1994 (Part 7 of Division 18, commencing with Section 36600, of the California Streets and Highways Code) (“Act”). Pursuant to the Act, property owners within the District submitted a signed petition requesting formation of the District. The District was successfully formed for a term of five years and a maximum assessment was approved by the property owners through an assessment ballot proceeding, conducted according to provisions of the California Constitution Article XIII D (“Proposition 218”). Fiscal Year 2025/2026 is the fifth year of the current term of the District. Under the provisions of the Act, the property owners within the District may renew the District for a term not to exceed ten (10) years. Since the District’s establishment, it has been renewed four (4) times.
Property owners within the District have submitted signed petitions requesting the renewal of the District for an additional five-year term. These petitions will be considered by the City Council as part of the proceedings for the renewal of the District pursuant to the Act.
Pursuant to the Act and Article XIII D of the California Constitution, the property owners within the District may approve the continuation of the District and the levy of assessments for an additional five-year period, subject to the required public hearing and assessment ballot proceedings.
The proposed renewal term for the District is five (5) years, commencing Fiscal Year 2026/2027 and continuing through Fiscal Year 2030/2031, during which time the improvements and activities described in this Report will continue without interruption. Services and activities will be provided beginning in Fiscal Year 2026/2027 and will continue on an ongoing basis throughout the five (5) year renewal term, concluding at the end of Fiscal Year 2030/2031.
This combined Management District Plan and Engineer’s Report (“Plan” or “Report”) is presented for consideration by the property owners within the President’s Plaza III Property and Business Improvement District (“District” or “PBID III”), to seek their support for the renewal of the District in accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code Section 36600 et seq. (the “Act”). This Management District Plan is required by Section 36622 of the Act for the proposed renewal of the District, to fund services and activities that improve and convey special benefits to properties located within the District boundaries, as described in Part II of this Report.
This Report describes the District, improvements and activities, method of apportionment, the proposed assessments for the current fiscal year, and the maximum assessment proposed for the five-year renewal term. The proposed assessments are based on the estimated cost to provide the improvements, activities, and operations that provide a direct and special benefit to properties within the District. The costs of improvements, activities, and operations include all expenditures, deficits, surpluses, revenues, and reserves.
The word “property,” for the purposes of this Plan, refers to real property situated within the District, and identified as an individual property or parcel assigned its own Assessor’s Parcel Number (APN) by the County of Riverside Assessor’s Office. The County of Riverside Auditor/Controller uses APNs to identify parcels on the tax roll and properties assessed for taxes, special assessments, and fees and charges.
This Report consists of seven (7) parts.
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2026/2027 President’s Plaza III Property and Business Improvement District Page 2 Part I
District Renewal Process: Describes the procedures required for the renewal of the District, including the submission of petitions by property owners, adoption of the Resolution of Intention, noticing requirements, public hearing, and assessment ballot proceedings conducted in accordance with the Property and Business Improvement District Law of 1994 and Article XIII D of the California Constitution.
Part II
Description of the District: Identifies the District boundaries and parcels included within the President’s Plaza III Property and Business Improvement District and describes the improvements and activities to be funded through the District.
Part III
Special Benefits of the Improvements and Activities: Describes the specific and distinct special benefits conferred upon properties within the District as a result of the improvements and activities funded through the assessments.
Part IV
Method of Apportionment: Explains how the costs of the improvements and services are distributed among the parcels within the District based on each parcel’s proportional special benefit, including the calculation of direct and indirect costs.
Part V
District Budget: Provides the estimated costs of improvements, activities, and services, including direct and indirect costs, and establishes the basis for the annual assessments.
Part VI
District Diagram: Provides a diagram showing the exterior boundaries of the District and identifying all parcels that receive special benefit from the improvements and activities.
Part VII
Assessment Roll: Provides a listing of the proposed assessment amount for each parcel within the District based on the proportional special benefit.
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2026/2027 President’s Plaza III Property and Business Improvement District Page 3 PART I — DISTRICT RENEWAL PROCESS
A written petition of the property owners within the District, representing more than fifty percent (50%) of the proposed assessment to be levied was submitted to the Palm Desert City Council to initiate renewal proceedings. The City Council initiated proceedings for the renewal of the District by adopting a resolution expressing its intention to renew the District. The resolution of intention referenced the Engineer’s Report and the Management District Plan and noticed the time and place of a public hearing on the renewal of the District and levy of assessments.
The City Council is required to hold a public hearing not less than forty-five (45) days after adopting the resolution of intention. Property owners are sent notice of the public hearing and assessment ballot proceedings in accordance with Government Code Section 53753, as required by Streets and Highways Code Section 36623(a). Public notices and assessment ballots (property owner protest ballots) are mailed to each property owner at least 45 days prior to the public hearing pursuant to Article XIII D of the California Constitution.
At the public hearing the City Council provides the public and property owners an opportunity to provide oral protests and written protests prior to the adoption of the Engineer’s Report and the Management District Plan. Pursuant to the California Constitution Article XIII D, the City Clerk or its designated alternate tabulates the property owner assessment ballots received from property owners and determines whether a majority protest exists.
ASSESSMENT COLLECTION
Assessments levied pursuant to this Management District Plan shall be collected by the County of Riverside on the secured property tax roll and shall be due and payable in the same manner and at the same time as the ad valorem property taxes. The County may deduct its reasonable costs of collection. Assessments shall be subject to the same penalties, interest, and foreclosure procedures in the event of delinquency as general property taxes. The levy and collection of assessments are made in accordance with the Property and Business Improvement District Law of 1994, including Streets and Highways Code Section 36622(g), and Article XIII D of the California Constitution. 506
2026/2027 President’s Plaza III Property and Business Improvement District Page 4 PART II — DESCRIPTION OF THE DISTRICT
DISTRICT BOUNDARY
The District consists of all parcels located in the commercial business area known as the President’s Plaza III within the City of Palm Desert, County of Riverside. The District includes sixteen (16) assessed commercial parcels.
The boundary of the District and the parcels therein are generally located South of Palm Desert Drive at Highway 111; North of El Paseo; West of Sage Lane; and East of Old Highway 74 and includes the Palm Desert Parking Lot – a lease parcel to the City of Palm Desert located South of Highway 111; East of New Highway 74; and West of Old Highway 74.
IMPROVEMENTS AND ACTIVITIES
In an effort to enhance and improve business opportunities and the appearance of the area known as the President’s Plaza III, the Agency provided funds for the renovation and capital improvement of the parking lot and landscaped areas related to this commercial business center. In conjunction with this renovation, President’s Plaza III Property and Business Improvement District was initially formed in 2001 and renewed every subsequent five-year period after the date of formation, to provide and ensure the continued operation and maintenance of the improvements after the renovations had been completed. It has been determined that all the properties within the District receive special and distinct benefits from the improvements and activities to be funded through the assessments. The improvements include the necessary activities, services, operations, administration, and maintenance required to keep the improvements in satisfactory condition including all necessary labor, material, and equipment. The services may include, but are not limited to, regular maintenance, repair, removal or replacement of all or any part of the improvements including removal of trimmings, rubbish, debris and other solid waste; and, providing for the growth, health and beauty of landscaping and lighting including cultivation, trimming, spraying, fertilizing or treating for disease or damage as well as supplying necessary irrigation and electrical energy. The specific improvements and activities include:
w Parking lot landscaped areas: including, but not limited to, ground cover, shrubs, trees, plants, irrigation and drainage systems, and associated appurtenant facilities; w Parking lot lighting facilities: including, but not limited to, bulbs, fixtures, poles, wiring, and electrical energy; and,
w Debris removal: including, but not limited to, regular mechanical sweeping of the parking lot.
The costs associated with the improvements are equitably apportioned among the benefiting parcels within the District utilizing the method of apportionment described in the Method of Apportionment section of this Report. The total funds collected shall be dispersed and used for the services and operations provided to the District.
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2026/2027 President’s Plaza III Property and Business Improvement District Page 5 PART III — BENEFITS OF THE IMPROVEMENTS AND ACTIVITIES
SPECIAL BENEFIT
The improvements and activities funded through the District are designed to provide direct and particular benefits to the parcels within the District. These improvements, including parking lot lighting, landscaping, and sweeping services, are located within and serve the District and are necessary for the operation, accessibility, and functionality of the properties. Such benefits are directly related to the use and operation of the assessed parcels and are not provided to properties outside the District in a manner that would confer comparable special benefit.
Assessed properties within the District receive special benefits from the improvements and activities funded through the District assessments, including lighting and landscaping amenities within the parking lot and regular sweeping of the parking lot.
The special benefits of lighting (parking lot lights) include enhanced safety, visibility, and usability of the parking area, which directly benefit the properties within the District. Specifically:
1. Enhanced deterrence of crime and the aid to police protection;
2. Increased nighttime safety for patrons and employees;
3. Improved visibility for pedestrians and motorists;
4. Improved ingress and egress to property;
5. Reduced vandalism and other criminal acts and damage to improvements or property;
6. Enhanced aesthetic appeal of the parking area and the properties that are associated with the parking area;
7. Increased promotion of business activities and opportunities during nighttime hours; and,
8. The special enhancement to the value of property, which results from the above benefits.
The benefits associated with landscaped islands and medians within the parking lot are specifically:
1. Improved aesthetic appeal of the parking area and nearby parcels;
2. Improved dust control;
3. Enhanced adaptation of the urban environment within the natural environment;
4. Improved traffic circulation;
5. A positive representation of the businesses within the District;
6. Centralized locations for refuse collection facilities; and,
7. The special enhancement to the value of property, which results from the above benefits.
Parking lot sweeping is an essential and necessary activity for all properties—particularly commercial properties. This improvement is funded through the assessments solely for the special benefit of properties within the District. The benefits associated with this service are:
1. Enhanced aesthetic appeal of the parking area and the properties that are associated with the parking area;
2. Improved dust control; and,
3. The special enhancement to the value of property, which results from the above benefits. 508
2026/2027 President’s Plaza III Property and Business Improvement District Page 6 The improvements and activities funded through the District are determined to provide approximately ninety-six percent (96%) special benefit to the parcels within the District, with the remaining portion of benefit attributed to incidental general benefit as described below.
The Engineer has determined that the assessments are proportional to, and do not exceed, the reasonable cost of the proportional special benefit conferred on each parcel..
GENERAL BENEFIT
While the improvements and activities funded through the District are intended to provide direct and special benefits to the parcels within the District, certain improvements may also provide incidental general benefits to the public at large and to properties outside the District boundaries.
The improvements are located within a privately owned commercial area and are primarily designed to support tenant operations, customer access, and property functionality. As such, the benefits are predominantly site-specific and directly related to the assessed parcels.
However, certain improvements, such as lighting and parking lot maintenance, may provide limited incidental benefits to members of the public accessing or passing through the area, including improved visibility, safety, and circulation. These benefits are secondary in nature and are not the primary purpose of the improvements.
The general benefit estimate is based on the nature, location, and use of the improvements, including their visibility and accessibility to the public, and reflects a reasonable determination of incidental benefit in accordance with Article XIII D of the California Constitution.
Based on the nature, location, and use of the District improvements, the general benefit is considered de minimis and is estimated at approximately four percent (4%) of the total benefit, with the remaining ninety-six percent (96%) representing special benefit to the parcels within the District.
The portion of costs associated with general benefit will not be assessed to the parcels within the District and shall be funded by the City from other available revenue sources. No assessment is imposed for general benefit, and all assessments are levied solely for the special benefit conferred on the parcels within the District.
509
2026/2027 President’s Plaza III Property and Business Improvement District Page 7 PART IV — METHOD OF APPORTIONMENT
METHOD OF APPORTIONMENT RATIONALE
The costs of the District improvements have been apportioned using a method that fairly distributes the total amount to be assessed among all assessed parcels in proportion to the estimated special benefits received by each parcel from the improvements. Parcel size (square footage) is the most appropriate basis for apportionment because the level of benefit derived from the improvements and activities is directly proportional to the size and intensity of use of each parcel within the District.
Accordingly, each parcel’s assessment reflects its proportional share of the special benefit and does not exceed the reasonable cost of that proportional special benefit.
PARKING LOT IMPROVEMENTS AND SERVICES
All assessed parcels within the President’s Plaza III PBID have use of, and access to, a centralized parking facility (lot) that provides access, parking, and delivery areas for the businesses and parcels within the District. Because the parking area is a centralized facility used and accessed by all properties within the District, each parcel’s benefit is proportional to the size and use of such parcel.
Therefore, it has been determined that a fair and reasonable reflection of each parcel’s benefit for the parking lot improvements shall be based on the approximate size, in square feet, of each parcel.
METHOD OF APPORTIONMENT CALCULATIONS
The total direct costs of the parking lot improvements and services are apportioned to each parcel within the District based on each parcel’s lot size in square feet. In addition to a parcel’s total direct cost, each parcel is assessed for District administration expenses and a reserve fund collection (indirect costs). The indirect costs for each parcel have been apportioned in the same manner as total direct costs. Therefore, each parcel’s total annual assessment is the sum of its proportionate share of the total direct costs and total indirect costs. Indirect costs are necessary to administer and support the improvements and activities that provide special benefit and are therefore allocated in the same proportion as direct costs.
APPORTIONMENT OF DIRECT COSTS
The total direct costs estimated for parking lot improvements and services (maintenance) are based on the estimated annual costs to maintain the landscaping, lighting, and mechanical sweeping of the parking lot for all parcels within the District. The total direct costs are divided by the sum of the square footage of all parcels within the District to establish a per parcel square foot rate. This rate multiplied by each parcel’s square footage equals their parcel’s proportionate share of the total direct costs (rounded to the nearest even penny). The rate provided in Table 1 is the first year of the proposed renewal for the District’s five (5) year renewal, commencing with Fiscal Year 2026/2027. Please refer to the District’s Five-Year Budget (Table 4) for all future proposed assessment rates through Fiscal Year 2030/2031.
Total Direct Cost / Total Square Footage = Rate per Square Foot Rate x Parcel Square Footage = Direct Cost Assessment Component 510
2026/2027 President’s Plaza III Property and Business Improvement District Page 8 Table 1: Direct Cost Proposed Assessment and Rate
Proposed Direct
Costs for FY 2026-
2027
Proposed Rate
(per Square Foot)
for FY 2026-2027
Total
Square
Footage
First Fiscal Year Maximum $95,520 $0.2104 453,956
Note: The direct and indirect cost amounts shown in Tables 1 through 3 reflect only the portion of total District costs attributable to special benefit (96%). The remaining four percent (4%) of costs associated with general benefit are funded by the City and are not included in the assessment calculations.
APPORTIONMENT OF INDIRECT (ADMINISTRATION/RESERVE) COSTS To ensure the continued implementation of improvements, activities, and services funded through the District, each parcel will be assessed for administrative and reserve costs (indirect costs). These indirect costs include expenses associated with District administration, County administration, insurance, and annual mandatory contributions to reserve funds. The reserve fund contributions consist of a fixed annual transfer of $1,000 to the operating reserve fund and $6,200 to the parking lot maintenance fund. In Fiscal Year 2026/2027, total indirect costs represent approximately 14.1% of the total District costs, while total direct costs represent approximately 85.9% of the total District costs. Assessment rates reflect only the portion of these costs attributable to special benefit (96%), with the remaining 4% funded by the City as general benefit.
Similar to the method of apportionment for total direct costs, the District’s indirect costs are apportioned to each parcel based on each parcel’s lot size in square feet. The rate provided in Table 2 is for Fiscal Year 2026/2027 only. Please refer to the District Budget (Table 4) for future assessment rates.
Total Indirect Cost / Total Square Footage = Rate per Square Foot Rate x Parcel Square Footage = Indirect Cost Assessment Component Table 2: Indirect Cost Proposed Assessment and Rate
Proposed Indirect
Costs for FY 2026-27
Proposed Rate
(per Square Foot)
for FY 2026-2027
Total Square
Footage
First Fiscal Year Maximum $15,699 $0.0346 453,956
TOTAL ANNUAL ASSESSMENT
Each parcel’s Total Annual Assessment is the sum of their proportionate share of the Direct Costs and indirect costs. The preceding description of the method of apportionment outlines the estimated cost and rates applied for the District in Fiscal Year 2026/2027. The rate provided in Table 3 is for Fiscal Year 2026/2027 only. Please refer to the District Budget (Table 4) for future assessment rates.
Direct Cost Rate + Indirect Cost Rate = Total Rate per Square Foot Total Rate x Parcel Square Footage = Total Parcel Assessment 511
2026/2027 President’s Plaza III Property and Business Improvement District Page 9 Table 3: Total Cost Proposed Assessment and Rate
First Fiscal Year Proposed Direct
Costs for FY 2026-27
Proposed Rate (per Square
Foot) for FY 2026-27
Direct Costs Maximum $95,520 $0.2104
Indirect Costs $15,699 $0.0346
Total Costs Maximum $111,219 $0.2450
Note: Total square footage as shown in Table 1 and 2 is 453,956.
ANNUAL BUDGET ADJUSTMENTS
For the five-year term of the PBID III renewal, annual assessments may be adjusted by the President’s Plaza III PBID owners’ association by up to three percent (3%) per year. Actual annual adjustments may range from zero percent (0%) to three percent (3%) and may vary from year to year based on service needs identified by the owners’ association. In no event shall assessments exceed the maximum levels illustrated in the District Budget (Table 4).
Any annual budget surplus or deficit shall be carried forward into District’s following year’s budget.
Assessments will be set accordingly, within the allowable annual adjustment, to account for any prior year surplus or deficit.
512
2026/2027 President’s Plaza III Property and Business Improvement District Page 10 PART V — DISTRICT BUDGET
The District Budget shown in Table 4 lists the estimated costs of providing the various improvements and services within the District during the five (5) year renewal period. The costs and resulting assessment rates for Fiscal Years 2026/2027 through 2030/2031 are based on the estimated costs to provide the improvements and services for each fiscal year. Direct costs, District and County administration costs, and insurance costs may be adjusted annually by up to three percent (3%) to account for inflation, consistent with the annual adjustment described in Part IV of this Report.
The owners’ association, appointed by the City Council, may review the District costs on an annual basis and provide input regarding potential changes or adjustments to the budget. Changes to the budget may result in adjustments to the annual assessment; however, in no event shall the total assessment exceed the maximum rates established in this Report without first obtaining property owner approval through assessment ballots.
Table 4: Five Year Budget
Actual Proposed
Assessment
Budget Item FY 2026-2027 (1) 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 Direct Costs
Landscape Contract Maintenance $46,000 $46,000 $47,380 $48,801 $50,265 $51,773 Sweeping Services 7,000 7,000 7,210 7,426 7,649 7,879
Landscape Extras (Materials/Special Maintenance) 30,000 30,000 30,900 31,827 32,782 33,765 Landscape Utilities - Water/Electrical 4,000 4,000 4,120 4,244 4,371 4,502 Street Lighting Utilities - Electric 12,500 12,500 12,875 13,261 13,659 14,069 Less: General Benefit Contribution (City Contribution) -3,980 -3,980 -4,099 -4,222 -4,349 -4,480 Subtotal Direct Costs $95,520 $95,520 $98,386 $101,337 $104,377 $107,509 Indirect Costs
District Administration $6,327 $6,327 $6,517 $6,712 $6,913 $7,121 County Administration 117 117 121 125 128 132
Operating Reserve Fund Collection 1,000 1,000 1,000 1,000 1,000 1,000 Parking Lot Maintenance Fund Collection 6,200 6,200 6,200 6,200 6,200 6,200 Insurance 2,709 2,709 2,790 2,874 2,960 3,049
Less: General Benefit Contribution (City Contribution) -654 -654 -665 -676 -688 -700 Subtotal Indirect Costs $15,699 $15,699 $15,963 $16,234 $16,514 $16,802 Levy Breakdown
Total Costs $115,853 $115,853 $119,113 $122,470 $125,928 $129,490 Less: General Benefit Contribution (City Contribution) -4,634 -4,634 -4,765 -4,899 -5,037 -5,180 Balance to Levy $111,219 $111,219 $114,348 $117,572 $120,891 $124,311 District Statistics
Total Parcels 16 16 16 16 16 16
Total Parcels To Levy 16 16 16 16 16 16
Total Parcels Square Footage 453,956 453,956 453,956 453,956 453,956 453,956 Levy Rate per Direct Costs per Sq Ft $0.2104 $0.2104 $0.2168 $0.2232 $0.2300 $0.2368 Levy Rate per Indirect Costs per Sq Ft $0.0346 $0.0346 $0.0352 $0.0358 $0.0364 $0.0370 Total Levy Rate per Square Foot $0.2450 $0.2450 $0.2518 $0.2590 $0.2664 $0.2738 Operating Reserve Fund Balance
Previous Balance $18,066 $18,066 $19,066 $20,066 $21,066 $22,066 Transfer In 1,000 1,000 1,000 1,000 1,000 1,000
Ending Balance $19,066 $19,066 $20,066 $21,066 $22,066 $23,066 Parking Lot Maintenance Fund Balance
Previous Balance $103,942 $103,942 $110,142 $116,342 $122,542 $128,742 Transfer In 6,200 6,200 6,200 6,200 6,200 6,200
Ending Balance $110,142 $110,142 $116,342 $122,542 $128,742 $134,942 Sources: City of Palm Desert; Willdan Financial Services Maximum Proposed Assessment for Fiscal Years
Maximum annual assessments for direct costs, district and county administration, and insurance are adjusted by 3% from the previous Fiscal Year for Fiscal Years 2026-2027 through 2030-2031. The PBID Advisory Board will determine the amount of any actual increase for those years which may not exceed 3% per year. (1) FY 2026-2027 Actual and Maximum Proposed Assessments are the same. 513
2026/2027 President’s Plaza III Property and Business Improvement District Page 11 Description of Budget Items
DIRECT BENEFIT COSTS
Landscape Contract Maintenance: Includes all regularly scheduled labor, materials (e.g., pipe, fertilizer, insecticides), and equipment required to properly maintain and ensure the satisfactory condition of all landscaping, irrigation, drainage systems, and appurtenant facilities. This includes routine maintenance and upkeep of landscaped and hardscape areas, including cleaning and sweeping of parking and common areas. The frequency and specific maintenance and operations required within the District will be determined by City staff.
Sweeping Services: Includes routine cleaning and sweeping of parking and common areas within the District to remove debris, trash, and sediment and to maintain a clean and safe environment.
Landscape Extras (Materials/Special Maintenance): Includes non-routine or supplemental maintenance activities, materials, and services necessary to maintain landscaping and related improvements, including repair or replacement of damaged landscaping, irrigation systems, and related infrastructure due to vandalism, weather, or wear, as well as planned upgrades or rehabilitation efforts.
Landscape Utilities - Water/Electricity: Includes the cost of water and electricity required for the operation of irrigation systems and other landscape-related improvements within the District.
Street Lighting Utilities - Electric: The furnishing of electricity required for the operation of lighting facilities, as well as routine maintenance and bulb replacement. This also includes repair or replacement of damaged lighting infrastructure due to vandalism, accidents, or storms, and periodic upgrades or replacement of lighting materials as needed.
INDIRECT BENEFIT COSTS (ADMINISTRATION/RESERVES)
District Administration: The cost borne to all City departments and staff, for providing the coordination of District services, operations and maintenance of the District. Including the response to public concerns and education, and procedures associated with the levy and collection of assessments. As well as contracting with professionals to provide additional administrative, legal, or engineering services specific to the District.
County Administration Fee: This is the actual total cost to the District for the County to collect District assessments on the property tax bills. This charge is based on a flat rate per fund number and not on a per assessment basis.
County Per Parcel Fee: This is the cost to the District for the County to collect assessments on the property tax bills. This charge is on a per assessment basis, at $0.45 per assessment, and is in addition to the County Administration Fee.
Operating Reserve Fund Collection: The Operating Reserve Fund provides for the collection of funds necessary to operate the District during each fiscal year, specifically for the period from July 1 through January when the County remits the first installment of assessments collected through property tax bills. This fund eliminates the need for the City to advance funds from non-District accounts to cover District expenses during the first half of the fiscal year. The Operating Reserve Fund may also be used to offset unforeseen costs, including but not limited to repairs, legal expenses, revenue shortfalls, or cost increases resulting from inflation or contractual obligations.
The annual Operating Reserve Fund Collection is established as a fixed contribution of $1,000, which represents approximately 0.86% of the total costs for Fiscal Year 2026/2027. 514
2026/2027 President’s Plaza III Property and Business Improvement District Page 12 Parking Lot Maintenance Fund Collection: The Parking Lot Maintenance Fund provides for the accumulation of funds to finance the sealing, re-striping, and repair of the parking lot, anticipated to occur after the fourth year of the District’s renewal term. The parking lot has an estimated total surface area of approximately 184,000 square feet.
In 2025, the District completed asphalt rehabilitation, sealing, striping, and related improvements to enhance the condition and functionality of the shared parking facilities. These improvements addressed maintenance needs and improved safety, circulation, and overall site conditions. The work totaled approximately $139,000, representing a significant investment in the District.
In addition, the City is currently implementing targeted upgrades within the District, including concrete repairs, landscape enhancements, and lighting improvements to address ongoing maintenance needs. These improvements, together with prior work and reserve replenishment, represent a total City investment of approximately $365,000.
These costs are provided for reference purposes only. Actual future costs are expected to be higher due to inflation, changes in material and labor costs, and the inclusion of repair work.
To ensure adequate funding for future maintenance, the District will collect a fixed annual contribution of $6,200 toward the Parking Lot Maintenance Fund. Based on current funding levels and planned annual reserve contributions, the District is expected to maintain sufficient funding to support mediumterm capital maintenance needs, including similar asphalt improvements anticipated toward the latter portion of the five (5) year PBID III renewal term.
Insurance: This line item supports insurance costs for the operation of the District, including general liability, property, and other applicable coverages necessary to protect District improvements, activities, and operations.
LEVY BREAKDOWN
Total District Costs: This represents the combined total of all budgeted direct and indirect costs.
DISTRICT STATISTICS
Total Parcels: The total number of parcels within the District.
Total Parcels to Levy: The total number of parcels within the District that will be assessed. Nonassessed lots or parcels include easements, common areas, and parcels within the boundaries of the District that currently do not benefit from the improvements and which are not included in the Total Parcels to Levy.
Total Parcels Square Footage: This is the combined total of the assessed parcels’ square footage applied to each assessed parcel within the District.
Levy Rate per Direct Costs per Square Foot: This amount represents the Rate for Direct Costs being applied to each assessed parcel’s individual lot square footage. The Levy Rate per Direct Costs is the result of dividing the estimated Total direct costs for that year by the sum of the District’s Total Parcels Square Footage. The rate is calculated to four decimal places.
Levy Rate per Indirect Costs per Square Foot: This amount represents the Rate for Indirect costs being applied to each assessed parcel’s individual lot square footage. The Levy Rate per Indirect costs is the result of dividing the estimated Total Indirect costs for that year by the sum of the District’s Total Parcels Square Footage. The rate is calculated to four decimal places.
Total Levy Rate per Square Foot: This amount represents the Rate being applied to each assessed parcel’s individual lot square footage. The Levy Rate per Square Foot is the result of dividing the estimated Total District Costs for that year by the sum of the District’s Total Parcel Square Footage.
The rate is calculated to four decimal places.
515
2026/2027 President’s Plaza III Property and Business Improvement District Page 13 PART VI — ASSESSMENT DIAGRAM
The Assessment Diagram for the District is on the following page and is inclusive of all parcels identified on the County of Riverside Assessor’s Parcel Maps as Book 627, Page 192. The Assessment Diagram will be kept on file with the City Clerk of the City of Palm Desert. 516
2026/2027 President’s Plaza III Property and Business Improvement District Page 14 517
2026/2027 President’s Plaza III Property and Business Improvement District Page 15 PART VII — ASSESSMENT ROLL
Parcel identification, for each lot or parcel within the District, shall be the parcel as shown on the County Assessor’s Map for the year in which this Report is prepared.
The Fiscal Year 2026/2027 Assessment Roll, which includes a listing of parcels assessed within this District, along with their assessment amounts, is shown in Table 5.
Maximum
Proposed
FY 2026/2027
1 627-192-006 11,000 $2,695.00 $2,695.00
2 627-192-009 10,933 2,678.59 2,678.59
3 627-192-014 33,940 8,315.30 8,315.30
4 627-192-020 11,980 2,935.10 2,935.10
5 627-192-021 11,958 2,929.71 2,929.71
6 627-192-022 11,936 2,924.32 2,924.32
7 627-192-023 11,814 2,894.43 2,894.43
8 627-192-024 35,741 8,756.55 8,756.55
9 627-192-033 43,560 10,672.20 10,672.20
10 627-192-034 45,738 11,205.81 11,205.81
11 627-192-035 46,173 11,312.39 11,312.39
12 627-192-036 17,424 4,268.88 4,268.88
13 627-192-037 34,848 8,537.76 8,537.76
14 627-192-038 44,431 10,885.60 10,885.60
15 627-192-039 21,932 5,373.34 5,373.34
16 627-192-040 60,548 14,834.26 14,834.26
Total 453,956 $111,219.22 $111,219.22
Note: Totals may not sum due to rounding.
Table 5: Assessment Roll
Source: Riverside County Secure Roll, Willdan Financial Services 73125 HIGHWAY 111
73040 EL PASEO
73080 EL PASEO
73155 HIGHWAY 111
73185 HIGHWAY 111
73180 EL PASEO
73190 EL PASEO ST
73200 EL PASEO
73241 HIGHWAY 111
73101 HIGHWAY 111
Proposed
Assessment for FY
2026/2027
73175 HIGHWAY 111
Assessor
Parcel
Number
Situs Address
73130 EL PASEO
Area
Square
Footage
73100 EL PASEO
73160 EL PASEO
73170 EL PASEO
73211 HIGHWAY 111
518