CITY COUNCIL STAFF REPORT
DATE: JUNE 24, 2026 PUBLIC HEARING
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 annual item will complete proceedings required by law to continue the levy of existing annual special assessments in the City’s various Street Lighting and Parkway Maintenance Districts. A Public Hearing is required to solicit public comments on the City’s consideration to levy and collect special assessments for the subject fiscal year. In accordance with state law, resolutions adopting detailed reports for the districts were approved by the City Council at the June 10, 2026, meeting.
RECOMMENDATION:
1. Open the Public Hearing and take public testimony; and
2. Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING THE ENGINEER’S
REPORTS AND ORDERING THE CONTINUED OPERATION AND
MAINTENANCE OF IMPROVEMENTS FOR 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 ORDERING THE LEVY AND
COLLECTION OF ANNUAL ASSESSMENTS RELATED THERETO FOR FISCAL YEAR 2026/2027.”
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.
City Council Staff Report
June 24, 2026 -- Page 2
Street Lighting and Parkway Maintenance Districts.
• 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) The districts operate under the requirements of Proposition 218 (“Right to Vote on Taxes Act”), approved by California voters in November 1996. Under Prop 218, any assessment rate increase above the current maximum requires a majority-approval mail ballot election of affected property owners.
Districts Nos. 3, 6A, 6C, 7, and 8 were established prior to Prop 218 and do not include an inflation adjustment formula; District No. 9 was established shortly after in 1997.
District Nos. 10 (Zones 1 and 2) and 12 include a Consumer Price Index (“CPI”) adjustment formula based on the Riverside–San Bernardino–Ontario area index published by the U.S. Bureau of Labor Statistics.
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.
On June 10, 2026, the City Council adopted Resolutions ordering the preparation of and giving preliminary approval of the Engineer’s Reports for the Districts and declaring its intention to conduct a Public Hearing on June 24, 2026, regarding the Districts and the levy and collection of special assessments related thereto.
The Engineer’s Reports have been filed with the City Clerk and are available for public review. In accordance with the Streets and Highways Code of the State of California, it is necessary for the City Council to conduct a Public Hearing, take public testimony, and the City Council can approve the levy and collection of special assessments for the various Special Districts for the subject fiscal year.
City Council Staff Report
June 24, 2026 -- Page 3
Street Lighting and Parkway Maintenance Districts.
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 24, 2026 -- Page 4
Street Lighting and Parkway Maintenance Districts.
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 24, 2026 -- Page 5
Street Lighting and Parkway Maintenance Districts.
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 24, 2026 -- Page 6
Street Lighting and Parkway Maintenance Districts.
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 24, 2026 -- Page 7
Street Lighting and Parkway Maintenance Districts.
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 24, 2026 -- Page 8
Street Lighting and Parkway Maintenance Districts.
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 24, 2026 -- Page 9
Street Lighting and Parkway Maintenance Districts.
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 24, 2026 -- Page 10
Street Lighting and Parkway Maintenance Districts.
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 24, 2026 -- Page 11
Street Lighting and Parkway Maintenance Districts.
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 24, 2026 -- Page 12
Street Lighting and Parkway Maintenance Districts.
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 be adjusted 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.
By approving the resolution, the City will receive an estimated $78,223 in additional revenue 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.
The following summarizes the fiscal status of each District:
City Council Staff Report
June 24, 2026 -- Page 13
Street Lighting and Parkway Maintenance Districts.
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 final annual step to continue levying special assessments in the City’s Street Lighting and Parkway Maintenance Districts, with reserve fund contributions funded through LLMD account 1413060. In accordance with the Engineer’s Reports prepared for each Maintenance District, the City Council can order the levying of special assessments to collect revenue to pay for expenditures incurred within each District, as identified in the following table for the subject fiscal year:
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%
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%
City Council Staff Report
June 24, 2026 -- Page 14
Street Lighting and Parkway Maintenance Districts.
District
Maximum
Rate
Applied
Rate
% of
Maximum
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
B. Engineer’s Reports