July 21, 2026, Item #11
DATE:
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CONTACT:
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Summary:
AGENDA REPORT CityofPoway
July 21, 2026
Honorable Mayor and Members of the City \)uncil
Eric Heidemann, Director of Public Works {
Jennafer Steffen, Senior Management Analyst (JS
(858) 668-4729 or [email protected] lJ'
CITY COUNCIL
Resolution Establishing Assessments for Poway Landscape Maintenance District 86-3 to be Collected on the San Diego County Property Tax Roll for Fiscal Year 2026-27 On June 16, 2026, City Council adopted Resolution No. 26-026 declaring intention to levy and collect assessments within Landscape Maintenance District (LMD) 86-3 and set the public hearing for July 21, 2026. 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 86-3 for Fiscal Year (FY) 2026-27. The FY 2026-27 assessment rate for LMD 86-3 Zone A is proposed to remain unchanged at the FY 2025-26 rate of $163.00 per benefit unit per year. The FY 2026-27 assessment rate for LMD 86-3 Zone B is proposed to increase from the FY 2025-26 rate by 3.79 percent, from $93.88 to $97.44 per benefit unit per year, based on the annual change in the San Diego-Carlsbad Consumer Price Index for All Urban Consumers (CPI). A benefit unit is a standardized measure used to equitably allocate LMD assessment costs based on the specific benefit each property receives, determined by an outside engineering firm.
Landscape maintenance for Zone A and Zone B will remain at services level C and A, respectively, and may be subject to adjustments depending on frequency and magnitude of unplanned events.
Recommended Action:
It is recommended the City Council take public input, close the public hearing and adopt the Resolution establishing assessments for LMD 86-3.
Discussion:
LMD 86-3 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-
3. A map showing LMD 86-3's boundaries is included as Attachment B. Each subdivision and/or development listed below was required to annex into the LMD 86-3 as a condition of property development either through the final map process or by Council Resolution. 1 of6
July 21, 2026, Item #11
LMD 86-3 Zone A includes the following residential developments:
TRACT PROJECT NAME
TM
TTM
TTM
3994
88-03
94-02
The Pond
Sycamore Springs
Poway Oaks
LMD 86-3 Zone B includes the following non-residential (commercial) developments:
TRACT PROJECT NAME
TPM 90-04 Wal-Mart
TTM 90-05 Creekside Plaza
DR 02-18 Poway City Center
DR 98-07/VAR 98-11 Poway Hyundai
TPM 01-06 Hillside Village Apartments
DR 05-05 Solara Apartments
In 1998, a ballot for an 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 86-3 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 86-3 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 exceed revenues, an increase of 3.79 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 86-3 Zone Bon a weekly basis.
City Council's approved FY 2026-27 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 86-3 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. The FY 2026-27 assessment rate for Zone A shall remain unchanged at the FY 2025-26 rate of $163.00 per benefit unit per year.
Revenue for LMD 86-3 Zone A is comprised of $25,917 from assessments, $1,465 in estimated interest 2 of6
July 21, 2026, Item #11
earnings and $1,782 in City General Benefit Contributions totaling $29,164.
LMD 86-3 Zone B includes a voter-approved inflater which helps revenues keep pace with inflationary cost increases. The assessment rate for FY 2026-27 is increasing by 3.79 percent, or the annual change in the CPI. The FY 2026-27 LMD 86-3 Zone B assessment rate will increase from FY 2025-26's rate of $93.88 to $97.44 per benefit unit per year. Revenue for LMD 86-3 Zone B is comprised of $21,191 from assessments, $2,128 in estimates interest earnings and $8,910 in City General Benefit Contributions, totaling $32,229.
Estimated revenues and the planned use of operating reserves are sufficient to cover current service levels.
Public Notification:
A Notice of Public Hearing was published in the Poway News Chieftain on Thursday, July 9, 2026, and Thursday, July 16, 2026. Pursuant to Government Code Section 53753, all public notification requirements have been met. No responses have been received regarding the proposed assessments at the time this report was written.
Attachments:
A. Resolution
B. LMD 86-3 Map
Tracy tevens
Assistant City Manager
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Reviewed By:
Alan Fenstermacher
City Attorney
Approved By:
Chr~
2 City Manager
July 21, 2026, Item #11
RESOLUTION NO. 26-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
POWAY, CALIFORNIA, ESTABLISHING ASSESSMENTS FOR
POWAY LANDSCAPE MAINTENANCE DISTRICT 86-3 TO BE
COLLECTED ON THE SAN DIEGO COUNTY PROPERTY TAX
ROLL FOR FISCAL YEAR 2026-27
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. 26-026 adopted by City Council of the City of Poway, County of San Diego, State of California, in connection with proceedings for Landscape Maintenance District 86-3, 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 16, 2026, 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 21, 2026, 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 the 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:
$163.00 per benefit unit per year
$97.44 per benefit unit per year
SECTION 2: The sum of assessments to be collected on the Fiscal Year 2026-27 San Diego County Property Tax Roll to provide for maintenance of landscape improvements within Zones A and B of Landscape Maintenance District 86-3 are as follows:
Zone A:
Zone B:
$25,917
$21,191
SECTION 3: Under assessment law, City General Benefit Contribution has been calculated for Zone A as $1,782 and for Zone Bas $8,910. 4 of6
II
II
ATTACHMENT A
July 21, 2026, Item #11
Resolution No. 26-
PASSED, APPROVED AND ADOPTED at a Regular Meeting of City Council of the City of Poway, California on the 21st day of July, 2026 by the following vote, to wit:
AYES:
NOES:
ABSTAINED:
ABSENT:
DISQUALIFIED:
Steve Vaus, Mayor
ATTEST:
Carrie Gallagher, CMC, City Clerk
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July 21, 2026, Item #11
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