CITY OF POMONA
COUNCIL REPORT
July 21, 2025
To: Honorable Mayor and Members of the City Council
From: Anita D. Scott, City Manager
Submitted By: Meg McWade, Public Works Director
SUBJECT: PUBLIC HEARING REGARDING THE LEVY OF FISCAL YEAR 2025-26 ASSESSMENTS FOR THE CONSOLIDATED CITYWIDE STREET LIGHTING AND LANDSCAPING MAINTENANCE DISTRICT RECOMMENDATION:
It is recommended that the City Council take the following actions:
Conduct a public hearing regarding the levy of assessments for the Consolidated Citywide Street Lighting and Landscaping Maintenance District for FY 2025-26; and After receiving public comments and testimony, close the Public Hearing and adopt the following Resolution:
RESOLUTION NO. 2025-90 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, CONFIRMING THE ASSESSMENT DISTRICT DIAGRAMS, ZONE BOUNDARIES, AND THE LEVY OF FISCAL YEAR 2025-26 ASSESSMENTS FOR THE CONSOLIDATED CITYWIDE STREET LIGHTING AND LANDSCAPING MAINTENANCE DISTRICT EXECUTIVE SUMMARY:
A public hearing is required prior to City Council adopting a Resolution (Attachment No. 1) to confirm the assessment diagrams, zone boundaries, and the assessments to be levied for FY 2025-26. Prior to conducting the public hearing, notification of the hearing (Attachment No. 2) is required. Affected property owners can comment orally or in writing regarding the Engineer’s Report (Attachment No. 3) and the assessments. At the time this report was submitted, the City Clerk had received no protest letters. Any subsequent protest letters will be presented to the City Council at the Public Hearing on July 21, 2025.
SB1439/GOVERNMENT CODE §84308 APPLICABILITY:
☐ When this box is checked, it indicates the agenda item is subject to the Levine Act SB1439 requirements. Councilmembers are reminded to check their campaign contributions and determine whether they have received a campaign contribution of $500 or more that would require disclosure and/or recusal from discussing or acting on this agenda item. Campaign contributions of $500 or more made 1) by any person or entity who is identified in the agenda report as the applicant or proposer or 2) on behalf of the applicant or participant, including a parent, subsidiary or otherwise related business entity, or 3) by any person who has a financial interest in the agenda item requires a councilmember to comply with SB1439.
FISCAL IMPACT:
Funding for the Consolidated Citywide Street Lighting and Landscaping Maintenance District (District) is derived from assessments of properties receiving benefits from the District. In the proposed budget, prepared prior to the draft Engineer’s Report, the City conservatively estimated the assessments would generate approximately $1,271,859 for FY 2025-26. The draft Engineer’s Report estimates a total levy of $1,281,913 from a total of 8,551 parcels levied, including additional annual revenue of $3,541.09 in Zone C from the 124 parcels being added to the citywide lighting assessment through this process and $103.13 in Zone D from the one parcel being added to South Garey Maintenance Assessment. The table below summarizes estimated revenues from the assessments as reflected in the FY 2025-26 Adopted Budget approved by the City Council on June 2, 2025:
Source of Funds
Phillips Ranch Zone A-B
Zones C and I
Total Zones D-F
University Corp. Center Zone H
Total
Assessment Revenue
$955,517
$144,630
$113,158
$58,554
$1,271,859
Notes:
Since FY 1999-00, all parcels formerly in Zone G have now been included in Zone C Totals may be off slightly due to rounding
The budgets in the Engineer’s Report were based on estimates provided months prior to the final FY 2025-26 budget adoption. Since the report, there have been a few city budget revisions. Estimated revenues in the table above have been updated to match the Adopted FY 25-26 Budget and may not reflect the amounts described in the Engineer’s Report.
The table below summarizes the estimated expenditures from the assessments. Where expenditures exceed revenues, fund balances will cover the shortfalls. Because the fund balance is nearly depleted in both the Phillips Ranch Assessment District (Zone A-B) and the University Corporate Center (Zone H), annual expenditures and services have been cut, which will be discussed further below. Despite these reductions, meeting the estimated expenditures will still necessitate the use of $4,832 from the existing fund balance in the Phillips Ranch Assessment District (Zone A-B) and $1,304 from that of the University Corporate Center (Zone H).
Uses of Funds
Phillips Ranch Zone A-B
Zones C and I
South Garey Zones D-F
University Corp. Center Zone H
Total
Personnel Costs
$181,559
$71,147
$28,793
$0
$281,526
Contractual Services
$552,187
$2,000
$28,400
$42,160
$624,747
Utilities
$132,000
$80,000
$27,000
$10,000
$249,000
Internal Services
$34,638
$12,472
$10,635
$2,398
$60,143
Other Operating Costs
$59,965
$15,550
$1,180
$5,300
$81,995
Total
$960,349
$181,196
$96,008
$59,858
$1,297,411
Note:
The budgets in the Engineer’s Report were based on estimates provided months prior to the final FY 2025-26 budget adoption. Since the report, there have been a few city budget revisions. The table above matches the estimated expenditures in the FY 25-26 Adopted Budget and therefore may not reflect the amounts described in the Engineer’s Report.
PUBLIC NOTICE REQUIREMENTS:
In accordance with California Streets and Highways Code Sections 22552, 22553, and 22626(a) and Government Code Section 6061, the Resolution of Intent to conduct the public hearing regarding the FY 2025-26 levy of assessments was published in the Inland Valley Daily Bulletin on July 11, 2025.
PREVIOUS RELATED ACTION:
On May 17, 2025, the City Council adopted Resolution No. 2025-29 authorizing David Taussig and Associates, Inc. (DTA) as the Engineer of Record for Fiscal Year 2025-26, and authorizing preparation of the Engineer’s Report pursuant to the Provisions of Division 15, Part 2 of the Streets and Highways Code of the State of California, for the Annual Assessment Levy for the Consolidated Citywide Street Lighting and Landscaping Maintenance District for FY 2025-26.
On June 2, 2025, the City Council approved the Engineer’s Report for the Consolidated Citywide Street Lighting and Landscaping Maintenance District and adopted Resolution No. 2025-66 declaring the City’s intent to levy assessments for FY 2025-26 and set a public hearing on the matter for July 21, 2025.
DISCUSSION:
The Engineer’s Report, which includes the respective proposed 2025-26 Assessment Roll data, is on file with the City Clerk for public review. The assessment estimates by Zone are reflected in the table above in the Fiscal Impact Section and also set forth in the Engineer’s Report. The zones and services within each Zone are highlighted in the following table:
In no case is the assessment rate higher than the previous year. However, parcels may have been added as a result of development. The established and fixed assessment rate-formula varies by Zone within the District depending on the types and levels of services received. There are no proposed increases to the assessment formulas within the District. Therefore, there are no Proposition 218 requirements to be met for the current action. However, it should be noted that a possible increase to the assessment for the University Corporate Center Zone H is currently being evaluated, and if it moves forward would be presented to City Council for consideration at a future date.
Adoption of the proposed Resolution will confirm the Assessment District Diagrams, including zone boundaries, and the list of assessments to be levied by the County Assessor for FY 2025-26. This action is necessary to meet the deadline set by the Los Angeles County Auditor-Controller for inclusion on the FY 2025-26 Assessment Roll.
It should be noted that assessments in Phillips Ranch and University Corporate Center have not seen an increase since the early 1990s, while costs have continued to escalate dramatically. Over that same time period, infrastructure as well as landscaping has continued to age and deteriorate. When Proposition 218 passed in 1996, the ability to increase revenues based on increased costs changed and any increase to the assessment – even a consumer price index adjustment – had to be increased through ballot measure. In other words, those in the assessment districts choose via a ballot process the level of service they are willing to support.
In Phillips Ranch, the City has conducted a Proposition 218 ballot measure three times to address rising costs occurring over decades – in 2008, 2018-19, and most recently in 2022-23. The measure was voted down all three times resulting in ongoing service level reductions as decided by those residents and businesses that voted. The assessment remains at $23.15 per month per household, a rate established in the early 1990’s to fund service levels at 1990’s prices. Those 1990 prices are no longer applicable. The City meets quarterly with a Phillips Ranch Oversight Committee that advises on how the City should prioritize the limited funding received through the assessments. More recent challenges have been presented because the area has been updated by CalFire to be considered a High Fire Hazard Severity Zone. The Los Angeles County Fire Marshall has not made a final determination regarding clearance requirements due to this change, but if they are to be increased then brush clearance costs increase, and there will be even less funding available for other landscaping. As it stands now, tree maintenance funding levels provide for emergencies with only minor safety level tree trimming which equates to an approximately 30-year tree trim cycle. Whereas, the City’s current tree funding in other areas provides a five-year trim cycle. Over time, the General Fund has absorbed originally unanticipated costs from this District by taking over the maintenance of Country Crossings and Phillips Ranch Park in 2009 – after the first failed vote – and then adding the costs of maintenance for the Greenbelt in FY 2025-26 to the General Fund – after the most recent failed vote. It is not sustainable for the General Fund to absorb any other additional costs. Since costs continue to escalate and Phillips Ranch voters continue to reject proposed increases, Staff will be reviewing options available to the City related to the significant issues caused by these unfunded maintenance needs.
For University Corporate Center Zone H, there are similar maintenance challenges and funding needs. The City hired a consultant and is currently in the process of moving forward with a Proposition 218 ballot process for University Corporate Center Zone H. Drastic cuts to service levels have been implemented due to expenditures exceeding revenues, and the fund balance being depleted. The City is meeting with property owners to determine if the most feasible course of action is to increase assessments to a level that keeps up with maintenance costs and covers the costs of deferred maintenance or if it is to dissolve the District. Changes requiring City Council approval will be brought back for consideration.
Prepared by:
Lindsay McElwain, Senior Management Analyst
ATTACHMENTS:
Attachment No. 1 – Resolution No. 2025-90
Attachment No. 2 – Notice of Public Hearing
Attachment No. 3 – Engineer’s Report for Fiscal Year 2025-26 Attachment No. 4 – 25-26 Levy PPT
Public Hearing Regarding Levy of Fiscal Year 2025-26 Assessments for Consolidated Citywide Street Lighting and Landscaping Maintenance District