July 15, 2025, Item #8DATE: TO: FROM: CONTACT: SUBJECT: Summary: AG EN DA REPORT City of Poway July 15, 2025 Honorable Mayor and Members of the City ~R~ncil Eric Heidemann, Director of Public Works ~·~ Danielle McIntosh, Senior Management Analys~ (858) 668-4729 or [email protected] ~ • CITY COUNCIL Resolution Establishing Assessments for Poway Landscape Maintenance District 86-2 to be Collected on the San Diego County Property Tax Roll for Fiscal Year 2025-26 On June 3, 2025, City Council adopted Resolution No. 25-014 declaring intention to levy and collect assessments within Landscape Maintenance District (LMD) 86-2 and set the public hearing for July 15, 2025. City Council is to consider the approval of a resolution (Attachment A) authorizing the levy and collection of assessments for each affected parcel within LMD 86-2 for Fiscal Year (FY) 2025-26. FY 2025-26 assessment rate for LMD 86-2 Zone A is proposed to remain unchanged at the FY 2024-25 rate of $186.16 per benefit unit per year. FY 2025-26 assessment rate for LMD 86-2 Zone Bis proposed to increase from the FY 2024-25 rate by 3.12 percent to $394.10 per benefit unit per year based on the annual change in the San Diego-Carlsbad Consumer Price Index for All Urban Consumers (CPI). Landscape maintenance for Zone A and Zone B will remain at service level C and A, respectively, and may be subject to adjustments depending on frequency and magnitude of unplanned events. Recommended Action: It is recommended City Council take public input, close .the public hearing and adopt the Resolution. Discussion: LMD 86-2 was formed on May 20, 1986, to maintain landscape improvements required as conditions of approval for the various subdivisions or developments included within the boundaries of LMD 86-2. A map showing LMD 86-2's boundaries is included as Attachment B. Each subdivision and/or development listed below was required to annex into the LMD 86-2 as a condition of property development either through the final map process or by Council Resolution. LMD 86-2 Zone A includes the following residential developments: TRACT PROJECT NAME TTM TTM TTM TPM TTM 1 of 6 4185R 87-12 89-03 97-15 89-05 Sunrise Ranch Silver Ridge (aka Poway Villas) Eagle Pointe (aka La Paz Summit) Paradise Development Southern Hills (aka Poway Summit Estates)
July 15, 2025, Item #8LMD 86-2 Zone B includes the following residential development: TRACT PROJECT NAME TTM CUP 83-02 06-09 (M) Sycamore Creek Loma Cabrillo, LLC FY 2025-26 assessment rate for Zone A is proposed to remain unchanged from the FY 2024-25 rate of $186.16 per benefit unit per year. FY 2025-26 assessment rate for Zone Bis proposed to increase from the FY 2024-25 rate of $382.16 to $394.10 per benefit unit per year. In 1998 and 2009, a ballot for assessment increase with annual cost indexing based on the annual CPI in Zone A failed. As a result, it was necessary to reduce maintenance services to ensure LMD 86-2 expenses did not exceed projected revenue. Consequently, Zone A service level was reduced to level C. Landscape maintenance will remain at service level C. Service level C consists of performing landscape maintenance (e.g., irrigation inspection, removal of trash and debris, trimming of shrubs, fertilizing, mowing, edging, pruning and sweeping) for respective areas within LMD 86-2 Zone A on a monthly basis. Service levels may be subject to adjustments depending on frequency and magnitude of unplanned events. Zone B passed the 1998 ballot allowing for the option of an annual increase based on the CPI. Because projected expenditures are exceeding revenues, an increase of 3.12 percent, the annual change in the CPI, is requested at this time for Zone B. Landscape maintenance will remain at service level A. Service level A consists of performing landscape maintenance (e.g., irrigation inspection, removal of trash and debris, trimming of shrubs, fertilizing, mowing, edging, pruning, and sweeping) for respective areas within LMD 86-2 Zone Bon a weekly basis. City Council's approved FY 2025-26 Engineer's Report is on file in the Office of the City Clerk, 13325 Civic Center Drive and the Department of Public Works, 14467 Lake Poway Road, Poway, California. Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). Fiscal Impact: LMD 86-2 Zone A does not include a voter-approved inflator which puts pressure on service levels as expenses increase over time due to inflation while revenues do not. FY 2025-26 LMD 86-2 Zone A assessment rate remains unchanged from the FY 2024-25 rate of $186.16 per benefit unit per year. Revenue for LMD 86-2 Zone A is comprised of $20,478 from assessments, $656 in estimated interest earnings and $4,293 in General Fund contributions. LMD 86-2 Zone B includes a voter-approved inflator which helps revenues keep pace with inflation. The assessment rate for FY 2025-26 is increasing by 3.12 percent, or the annual change in the CPI. FY 2025-26 LMD 86-2 Zone B assessment rate will increase from the FY 2024-25 rate of $382.16 to $394.10 per benefit unit per year. Revenue for LMD 86-2 Zone B is comprised of $66,209 from assessments, $824 in estimates interest earnings and $3,854 in General Fund contributions. Estimated revenues and the planned use of operating reserves in Zone B are sufficient to cover planned service levels. Service levels may be subject to adjustments depending on frequency and magnitude of unplanned events. 2 of 6
July 15, 2025, Item #8General Fund contributions will be made based upon average square footage maintenance costs for landscaped medians and rights-of-way that provide general benefit to the City. Public Notification: A Notice of Public Hearing was published in the Poway News Chieftain on Thursday, June 19, 2025. Pursuant to Government Section 53753, all public notification requirements have been met. No responses have been received regarding proposed assessments at the time this report was written. Attachments: A. Resolution B. LMD 86-2 Map Reviewed/Approved By: Assistant City Manager 3 of6 Reviewed By: Alan Fenstermacher City Attorney Approved By: c~ City Manager
July 15, 2025, Item #8RESOLUTION NO. 25-A RESOL.UTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, ESTABLISHING ASSESSMENTS FOR POWAY LANDSCAPE MAINTENANCE DISTRICT NO. 86-2 TO BE COLLECTED ON THE SAN DIEGO COUNTY PROPERTY TAX ROLL FOR FISCAL YEAR 2025-26 WHEREAS, City Council of the City of Poway desires to have Landscape Maintenance District assessments collected on the San Diego County Property Tax Roll; WHEREAS, pursuant to provisions of City of Poway Resolution No. 00-034 (Policies for Landscape Maintenance Districts) and Assessment law being "Landscape and Lighting Act of 1972" (being part 2 of Division 15 of the California Streets and Highways Code), applicable provisions of "Proposition 218" (begin Article XIII C of the California Constitution), and provisions of "Proposition 218 Omnibus Implementation Act" (being California Senate Bill 919), and in accordance with the Resolution of Intention, being City of Poway Resolution No. 25-014 adopted by City Council of the City of Poway, County of San Diego, State of California, in connection with proceedings for Landscape Maintenance District No. 86-2, the Assessment Engineer for the City of Poway has submitted an Engineer's Report for the District as required by California Street and Highways Code, Section 22565; WHEREAS, on June 3, 2025, at a regular meeting of Poway's City Council, amounts to be collected have been set forth in a public Engineer's Report; WHEREAS, on July 15, 2025, City Council held a duly advertised public hearing to solicit comments from the public, both for and against, relative to the matter; and WHEREAS, this action is authorized by laws of the State of California. NOW, THEREFORE, BE IT RESOLVED by City Council of the City of Poway as follows: SECTION 1: The Assessment Rates for two (2) zones are as follows: Zone A: Zone B: $186.16 per benefit unit per year $394.10 per benefit unit per year SECTION 2: The sum of assessments to be collected on the Fiscal Year 2025-26 San Diego County Property Tax Roll to provide for maintenance of landscape improvements within Zones A and B of Landscape Maintenance District No. 86-2 are as follows: Zone A: Zone B: $20,478 $66,209 SECTION 3: Under assessment law, City of Poway's General Benefit Contribution has been calculated for Zone A as $4,293 and for Zone B as $3,854. 4 of6 II II ATTACHMENT A
July 15, 2025, Item #8Resolution No. 25-Page 2 PASSED, APPROVED AND ADOPTED at a Regular Meeting of City Council of the City of Poway, California on the 15th day of July, 2025 by the following vote, to wit: AYES: NOES: ABSTAINED: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Carrie Gallagher, CMC, City Clerk 5 of6
July 15, 2025, Item #8Twin Peaks Rd 6 of6 cl a: >-ro ,:: 0 c.. City of Poway Garden Rd ATTACHMENT B County of San Diego