June 24, 2025
Public Works
DATE: June 24, 2025
TO: Mayor Martinez and Members of the City Council
FROM:
Daniel Chavarria, PE, Director of Public Works
Robert Armijo, PE, Deputy of Public Works Director/City Engineer
Jason Lacey, Parks & Landscaping Superintendent
Avinesh Nadan, Finance Manager II
Gabino Arredondo, Project Manager
Subject:
Approval of Engineer’s Report and Intent to Levy
Assessments for Hilltop Landscape Maintenance District
(HLMD) for Fiscal Year (FY) 2025-2026
FINANCIAL IMPACT: The fiscal impact to the City for F iscal Year 2025-2026 relating to Hilltop Landscape Maintenance District
(HLMD) is $570,512. Of this amount, $320,152 relates
to a 25 percent contribution towards salaries and
benefits of full -time employees that is expensed directly in General Fund. The remaining $2 50,360 represents
cash contribution towards HLMD for general benefits.
This amount shall be allocated as transfer -out
expenditure from the General Fund (Account string:
01917090- 400901) into the HLMD Fund budget as a
transfer-in revenue for FY 2025 -2026 (Account string:
11233731- 391994). This cash contribution continues
the City’s longstanding practice, dating back to the FY 1998–99 Engineer’s Report, of funding the proportion of costs determined to be of general benefit and not
assessable to private parc els.
PREVIOUS COUNCIL
ACTION:
June 3, 2025
AGENDA
REPORT
June 24, 2025
STATEMENT OF THE
ISSUE:
On June 3, 2025, the City Council approved the
preliminary Engineer’s Report for Fiscal Year 2025-2026 for the HLMD, declared the City Council’s intention to
increase the annual assessment and set a public hearing about the proposed increased assessment for June 24,
2025.
RECOMMENDED ACTION: HOLD a public hearing; and ADOPT a resolution approving the Engineer’s Report for the Hilltop
Landscape Maintenance District (HLMD) for the Fiscal
Year 2025-2026, providing for a three percent increase in annual assessments – Public Works Department (Daniel
Chavarria 620-5478/Jason Lacey 620-6920).
DISCUSSION:
The Hilltop Landscape Maintenance District (HLMD) continues to be an important element in maintaining and improving the quality of life for residents and businesses.
Established in 1986, the HLMD provides essential landscaping, lighting improvements, and maintenance, contributing significantly to the area's aesthetic and functional appeal.
For the fiscal year 2025-2026, the proposed assessments have been reviewed and planned to ensure the district's financial sustainability and operational efficiency.
The HLMD encompasses landscape improvements, including public streets, medians, and open spaces. The district is divided into three benefit zones with unique characteristics and maintenance requirements. Zone 1 includes high-density residential and light industrial/commercial areas; Zone 2 is primarily residential with some commercial and industrial areas; and Zone 3 covers the industrial area along Atlas Road. Maintenance activities for the upcoming fiscal year will include routine landscaping, street tree maintenance, park upkeep, graffiti removal, and sound wall maintenance. There will also be a continued focus on water management and irrigation system efficiency to promote sustainability (Attachment 1).
The Engineer’s Report details the special benefits received by properties within the District, which include proximity to improved landscaped areas, enhanced views, and increased access to green spaces. These improvements directly benefit the properties, increasing their aesthetic appeal and usability. The report also complies with recent legal requirements to separate general benefits from special benefits, ensuring that only those properties directly benefiting from the maintenance services are assessed.
For the upcoming fiscal year, it is proposed that the assessments be adjusted by an inflation rate of three percent (3%) to account for increased maintenance costs and to ensure the continued high quality of services. This adjustment is in line with the provisions set forth by previous resolutions and legal mandates.
June 24, 2025
The total amount proposed to be assessed for FY 2025-2026 is detailed in the Engineer’s Report. The assessment ensures that the District can cover the necessary maintenance costs while maintaining a reserve fund for unforeseen expenses.
Additionally, the City’s contribution to the general benefit portion of the services will be included in the General Fund for FY 2025–2026. The total proposed assessment for the Hilltop LMD for the Fiscal Year (FY) 2025–2026 is $1,283,243. This amount includes the City contribution of staff salaries and benefits directly paid in the General Fund and the City's cash contribution of $250,360 for general benefits, which shall be included as a transfer-out in the General Fund into the Hilltop LMD Fund budget as a transfer-in for FY 2025–2026. In addition, the City also contributes 25 percent toward salaries and benefits of full-time employees, expensed directly in the General Fund, estimated at $320,152. The practice of making a general benefit contribution dates back to the original FY 1998–99 Engineer’s Report, which identified a portion of maintenance costs—then estimated at 10 percent—as benefiting the general public and not assessable to private parcels (Attachment 2). That foundational approach continues to guide the City’s contribution methodology. The FY 2025–2026 budget supports the need for a 3 percent inflationary increase, which is proposed, and the proposed assessment on each parcel has been increased by 3 percent.
The proposed assessments are based on the special benefits conferred to properties within the district, such as proximity to well-maintained landscaped areas, improved property views, and enhanced public spaces that serve as extensions of private properties. The assessments are calculated using a detailed methodology that ensures fairness and proportionality, considering property size, use, and location.
In compliance with Proposition 218, the report separates general benefits from special benefits. General benefits, which accrue to the public at -large or properties outside the district, are not included in the assessment calculations. This separation ensures that property owners within the HLMD are only paying for the direct benefits they receive.
On June 3, 2025, the City Council approved the preliminary Engineer’s Report and adopted a resolution stating its intention to increase assessments and announcing that a public hearing on the proposed assessments would be held at the City Council’s regular meeting of June 24, 2025, at 5:00 p.m.
The 2025-2026 fiscal year assessments for the Hilltop Landscape Maintenance District have been calculated to reflect the cost of maintaining and improving the district's landscaping and lighting. These efforts are important in maintaining the district's appeal and functionali ty, ultimately enhancing the quality of life for all residents and property owners within the district. The proposed budget and assessments ensure that the HLMD remains financially sustainable while continuing to provide high-quality services.
City staff recommend the City Council adopt the resolution approving the Engineer’s Report for the Hilltop Landscape Maintenance District (HLMD) for the Fiscal Year 2025 - 2026, providing for a three percent increase in annual assessments (Attachment 3) .
Futhermore, that the City Clerk will record this resolution, together with Exhibit A as may be amended, with the office of the County Recorder of Contra Costa County, California (Attachment 4).
June 24, 2025
DOCUMENTS ATTACHED:
Attachment 1 - Hilltop Landscaping Maintenance District Engineer’s Report FY 25-26 Attachment 2 - FY 1998–99 Engineer’s Report for the HLMD (Historical Reference) Attachment 3 - Resolution
Attachment 4 - County Certification Letter - Hilltop LMD