CITY COUNCIL STAFF REPORT
DATE: JUNE 10, 2026 CONSENT CALENDAR
SUBJECT: ANNUAL LEVY OF ASSESSMENTS FOR VARIOUS STREET LIGHTING
AND PARKWAY MAINTENANCE DISTRICTS CITYWIDE FOR FISCAL
YEAR 2026-2027
FROM: Scott C. Stiles, City Manager
BY: David McAbee, Director of Public Works
SUMMARY:
This item will initiate proceedings required by law to continue the levy of existing annual special assessments in the City’s various Street Lighting and Parkway Maintenance Districts. Adoption of a Resolution of Intention will schedule a Public Hearing for June 24, 2026, to consider the formal levy and collection of special assessments for the subject fiscal year.
RECOMMENDATION:
1. Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, CALIFORNIA, ORDERING THE PREPARATION OF AND GIVING PRELIMINARY APPROVAL OF THE ENGINEER’S REPORT REGARDING STREET LIGHTING MAINTENANCE DISTRICT NO. 3, AND PARKWAY MAINTENANCE DISTRICTS NO. 6A, 6C, 7, 8, 9, AND 10 (ZONES 1 AND 2), AND LANDSCAPE MAINTENANCE DISTRICT NO. 12, TO ESTABLISH
ANNUAL ASSESSMENTS AND THE LEVY AND COLLECTION RELATED
THERETO FOR FISCAL YEAR 2026/2027”; (Attachment A)
2. Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, CALIFORNIA, DECLARING ITS INTENTION TO CONDUCT A PUBLIC HEARING ON JUNE 24, 2026, REGARDING STREET LIGHTING MAINTENANCE DISTRICT NO. 3, AND PARKWAY MAINTENANCE DISTRICTS NO. 6A, 6C, 7, 8, 9, AND 10 (ZONES 1 AND 2), AND LANDSCAPE MAINTENANCE DISTRICT NO. 12, AND TO LEVY AND COLLECT ANNUAL ASSESSMENTS RELATED THERETO FOR FISCAL YEAR 2026/2027.” (Attachment B)
City Council Staff Report
June 10, 2026 – Page 2
Street Lighting and Parkway Maintenance Districts.
1 0
5 2
BACKGROUND:
The City has formed nine (9) Landscape and Streetlighting Maintenance Districts pursuant to the Landscaping and Lighting Act of 1972 of the California Streets and Highways Code. This procedure authorized the City to recover costs that are incurred in providing landscaping and street lighting maintenance service through a special benefit assessment district procedure.
Street Lighting Maintenance District No. 3 (Crossley Tract – 75 Properties) Parkway Maintenance District No. 6A (Fairport Development – 25 Properties) Parkway Maintenance District No. 6C (Park Sonora Tract – 30 Properties) Parkway Maintenance District No. 7 (Sunrise Norte Tract – 53 Properties) Parkway Maintenance District No. 8 (Vintage Palms Tract – 62 Properties) Parkway Maintenance District No. 9 (Flora Vista Tract – 77 Properties) Parkway Maintenance District No. 10, Zone 1, (Mountain Gate – 308 Properties) Parkway Maintenance District No. 10, Zone 2 (Mountain Gate 2 – 196 Properties) Landscape Maintenance District No. 12 (Smoke Tree Commons – 6 Parcels) On November 5, 1996, the voters of California approved Proposition 218, the “Right to Vote on Taxes Act,” (or “Prop 218”). Prop 218 revised the manner in which local agencies could increase special assessments or levy new taxes, by adding Articles XIIIC and XIIID to the California Constitution and imposing new regulations requiring local agencies to call for elections for a vote of affected property owners for any proposed new or increased special assessment.
Proposition 218 fundamentally changed the procedural requirements for imposing, extending, or increasing landscape and lighting assessments.
Prior to Prop 218, local agencies had the legal ability to propose new or increased special assessments, and such assessments could be implemented insofar as majority protests were not presented by the affected property owners. Prop 218 has imposed a challenge on local agencies administering Special Districts that generate revenue for maintaining public improvements that benefit private properties.
A Proposition 218 mail ballot election, with majority support, would be required for any rate increase to the property owners in the districts above their current maximum assessment.
Five of the Special Districts (Nos. 3, 6A, 6C, 7, and 8) were established prior to Prop 218, and District No. 9 was established immediately after Prop 218 in 1997.
Those Special Districts that were established prior to Prop 218 did not have a formula for adjustment of special assessments to account for inflation; therefore, after Prop 218 any increase in special assessments requires a local agency to call for a special election and for a majority vote to support an increased assessment.
City Council Staff Report
June 10, 2026 – Page 3
Street Lighting and Parkway Maintenance Districts.
1 0
5 2
District Nos.10 Zone 1, 10 Zone 2, and 12 were originally established with a formula allowing for annual increases to the special assessment subject to the Consumer Price Index (“CPI”).
The CPI adjustment is determined by the United States Department of Labor, Bureau of Labor Statistics for all urban consumers in the Riverside - San Bernardino - Ontario area.
STAFF ANALYSIS:
In accordance with the Streets and Highways Code of the State of California, the City is required to prepare Engineer’s Reports on the annual costs to operate and maintain improvements within the City’s various Street Lighting or Parkway Maintenance Districts.
For the City to continue assessing fees to maintain its landscape and lighting districts under the Landscape and Lighting Act of 1972, the City Council is required to approve or approve as modified, resolutions Approving the Preliminary Engineer’s reports (Attachment A) and the Intention to Conduct a Public Hearing (Attachment B).
This process will evidence the City’s intention to levy and collect assessments. A public hearing is required even though the rates are not recommended for increases over the allowable costs under Proposition 218, and the hearing has been scheduled for Wednesday, June 24, 2026.
City Council Staff Report
June 10, 2026 – Page 4
Street Lighting and Parkway Maintenance Districts.
1 0
5 2
1. Street Lighting Maintenance District No. 3 consists of 75 residential parcels located in the “Crossley Tract,” south of 34th Avenue along Lawrence Street and Marguerite Street. District No. 3 was established in 1983 to provide funding for the installation, operation and maintenance of street lighting along Lawrence Street and Marguerite Street, shown in the Vicinity Map below:
District No. 3 Vicinity Map
Crossley Tract
City Council Staff Report
June 10, 2026 – Page 5
Street Lighting and Parkway Maintenance Districts.
1 0
5 2
2. Parkway Maintenance District No. 6A consists of 25 commercial and industrial properties located in the “Fairport Development,” between Chia Road and Tachevah Drive, west of Gene Autry Trail. District No. 6A was established in 1980 to provide funding for the maintenance of parkway landscaping along the south side of Chia Road as shown in the Vicinity Map below:
District No. 6A Vicinity Map
Fairport Development
City Council Staff Report
June 10, 2026 – Page 6
Street Lighting and Parkway Maintenance Districts.
1 0
5 2
3. Parkway Maintenance District No. 6C consists of 30 residential parcels located in the “Park Sonora Tract,” on the east side of El Cielo Road along Sonora Road, Loma Vista Circle and San Marin Circle. District No. 6C was established in 1980 to provide funding for the maintenance of parkway landscaping along the east side of El Cielo Road along the frontage of the Park Sonora Tract, shown in the Vicinity Map below:
District No. 6C Vicinity Map
Park Sonora Tract
City Council Staff Report
June 10, 2026 – Page 7
Street Lighting and Parkway Maintenance Districts.
1 0
5 2
4. Parkway Maintenance District No. 7 consists of 53 residential parcels located in the “Sunrise Norte Tract,” on the north side of San Rafael Drive west of Sunrise Way, located along Mountain Shadow Drive, Sand Spring Drive, Mica Drive, Garnet Road, and Twin Star Road. District No. 7 was established in 1990 to provide funding for the maintenance of parkway landscaping along the north side of San Rafael Drive along the frontage of the Sunrise Norte Tract, shown in the Vicinity Map below:
District No. 7 Vicinity Map
Sunrise Norte Tract
City Council Staff Report
June 10, 2026 – Page 8
Street Lighting and Parkway Maintenance Districts.
1 0
5 2
5. Parkway Maintenance District No. 8 consists of 62 residential parcels located in the “Vintage Palms Tract,” on the north side of San Rafael Drive and the east side of Avenida Caballeros. District No. 8 was established in 1990 to provide funding for the maintenance of parkway landscaping along the north side of San Rafael Drive and the east side of Avenida Caballeros along the frontage of the Vintage Palms Tract, shown in the Vicinity Map below:
District No. 8 Vicinity Map
Vintage Palms Tract
City Council Staff Report
June 10, 2026 – Page 9
Street Lighting and Parkway Maintenance Districts.
1 0
5 2
6. Parkway Maintenance District No. 9 consists of 77 residential parcels located in the “Flora Vista Tract,” on the south side of Racquet Club Road, the west side of Sunrise Way, and the north side of Via Escuela. District No. 9 was established in 1997 to provide funding for the maintenance of parkway landscaping along the west side of Sunrise Way along the frontage of the Flora Vista Tract, shown in the Vicinity Map below:
District No. 9 Vicinity Map
Flora Vista Tract
City Council Staff Report
June 10, 2026 – Page 10
Street Lighting and Parkway Maintenance Districts.
1 0
5 2
7. Parkway Maintenance District No. 10, Zone 1, consists of 308 residential parcels located in the “Mountain Gate (Phase 1),” development on the east side of N. Palm Canyon Drive and north of Gateway Drive. District No. 10, Zone 1, was established in 2003 to provide funding for the maintenance of parkway landscaping along the east side of N. Palm Canyon Drive, the north side of Gateway Drive, and drainage basins along East Gate Road, shown in the Vicinity Map below:
District No. 10 – Zone 1 Vicinity Map
Mountain Gate (Phase 1)
City Council Staff Report
June 10, 2026 – Page 11
Street Lighting and Parkway Maintenance Districts.
1 0
5 2
8. Parkway Maintenance District No. 10, Zone 2, consists of 196 residential parcels located in the “Mountain Gate (Phase 2),” development on the east side of N. Palm Canyon Drive. District No. 10, Zone 2, was established in 2005 to provide funding for the maintenance of parkway landscaping along the east side of N. Palm Canyon Drive, shown in the Vicinity Map below:
District No. 10 – Zone 2 Vicinity Map
Mountain Gate (Phase 2)
City Council Staff Report
June 10, 2026 – Page 12
Street Lighting and Parkway Maintenance Districts.
1 0
5 2
9. Landscape Maintenance District No. 12 consists of 6 commercial parcels located in the “Smoke Tree Commons” shopping center on the south side of E. Palm Canyon Drive and west side of Barona Road. District No. 12 was established in 2008 to provide funding for the maintenance of median landscaping within E. Palm Canyon Drive between Cerritos Drive and Farrell Drive, shown in the Vicinity Map below:
District No. 12 Vicinity Map
Smoke Tree Commons
City Council Staff Report
June 10, 2026 – Page 13
Street Lighting and Parkway Maintenance Districts.
1 0
5 2
ENVIRONMENTAL ASSESSMENT:
The requested City Council action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The above- mentioned requested actions, are exempt from CEQA pursuant to Section 15378(b), in that a “Project” does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the following City Council Strategic Plan Broad Goal: Infrastructure and Facilities.
FISCAL IMPACT:
The CPI increase for Fiscal Year 2026-27 is 3.09%.
District Nos.10 Zone 1, 10 Zone 2, and 12, had a CPI increase of 3.09% to their maximum assessment rate. The assessments for Fiscal Year 2026-2027 are proposed to increase by 5% over the prior year’s assessment rates. The proposed assessment rates are below the maximum allowable assessment rates. The 5% increase does not trigger a Proposition 218 election and may be adjusted each year to meet budget needs.
District Nos. 3 and 8 had a 5% increase to their assessment for Fiscal Year 2026-27, since they were not at their maximum assessment. This increase does not trigger a Proposition 218 election and may adjust each year to meet budget needs.
The intent is to build and maintain an adequate surplus to provide the required service.
There are specific times when an unexpected event occurs. Staff will utilize additional built-up surplus to address these unexpected events.
The City will receive an estimated $78,223 in additional revenue for Fiscal Year 2026- 2027 compared to Fiscal Year 2025-2026, offsetting ongoing expenditures.
Beginning with Fiscal Year 2026-27 staff will be assigning individual financial account numbers for each specific district, to allow for improved transparency and tracking of costs and revenues received.
City Council Staff Report
June 10, 2026 – Page 14
Street Lighting and Parkway Maintenance Districts.
1 0
5 2
The following summarizes the fiscal status of each District:
District
Budgeted
Expenses
Reserve
Fund
Contribution
FY 26-27
Levy
Street Lighting Maintenance District No. 3
(Crossley Tract) $3,004 ($244) $2,760
Parkway Maintenance District No. 6A
(Fairport Development) $25,253 ($20,099) $5,153
Parkway Maintenance District No. 6C
(Park Sonora Tract) $22,104 ($9,737) $12,368
Parkway Maintenance District No. 7
(Sunrise Norte) $28,260 ($4,514) $23,746
Parkway Maintenance District No. 8
(Vintage Palms) $36,718 ($17,284) $19,433
Parkway Maintenance District No. 9
(Flora Vista) $30,820 ($13,412) $17,408
Parkway Maintenance District No. 10,
Zone 1 (Mountain Gate 1) $132,074 ($62,284) $69,790
Parkway Maintenance District No. 10,
Zone 2 (Mountain Gate 2) $169,460 $12,713 $182,173
Landscape Maintenance District No. 12
(Smoke Tree Commons) $46,491 ($26,338) $20,153
Total $494,185 ($141,200) $352,985
Approval of this action is the first step to formally levying special assessments in the City’s Street Lighting and Parkway Maintenance Districts, with reserve fund contributions budgeted through LLMD account 1413060. In accordance with the Engineer’s Reports prepared for each Maintenance District, at the public hearing to be held on June 24, 2026, the City Council will consider levying special assessments to collect revenue to pay for expenditures incurred within each District, as identified below and on the following page:
District
Maximum
Rate
Applied
Rate
% of
Maximum
Street Lighting Maintenance District No. 3
(Crossley Tract) $57.11 $36.80 64.44%
Parkway Maintenance District No. 6A
(Fairport Development) $166.25 $166.24 99.99%
Parkway Maintenance District No. 6C
(Park Sonora Tract) $412.26 $412.26 100.00%
Parkway Maintenance District No. 7
(Sunrise Norte) $448.05 $448.04 100.00%
City Council Staff Report
June 10, 2026 – Page 15
Street Lighting and Parkway Maintenance Districts.
1 0
5 2
District
Maximum
Rate
Applied
Rate
% of
Maximum
Parkway Maintenance District No. 8
(Vintage Palms) $449.88 $313.44 69.67%
Parkway Maintenance District No. 9
(Flora Vista) $226.08 $226.08 100.00%
Parkway Maintenance District No. 10
Zone 1 (Mountain Gate 1) $589.69 $225.42 38.23%
Parkway Maintenance District No. 10
Zone 2 (Mountain Gate 2) $932.68 $919.60 98.60%
Landscape Maintenance District No. 12
(Smoke Tree Commons) $1,174.01 $1,114.68 94.95%
The proposed assessment rates for the subject Fiscal Year are lower or equal to the maximum assessment rates previously approved by property owner petition or balloting, in accordance with the provisions of Proposition 218.
REVIEWED BY:
Director of Public Works: David McAbee
Director of Finance & Treasurer: Kristopher J. Mooney
Assistant City Manager: Teresa Gallavan
City Manager: Scott Stiles
ATTACHMENTS:
A. Resolution No. 1 - Preliminary Approval of Engineer’s Reports B. Resolution No. 2 - Intention to Conduct Public Hearing C. Engineer’s Reports