May 26, 2026
Department
DATE: May 26, 2026
TO: Mayor Martinez and Members of the City Council
FROM:
Daniel Chavarria, PE, Director of Public Works/City
Engineer
Jason Lacey, Parks & Landscaping Superintendent
Subject:
Preliminary Engineer’s Report and Intent to Levy
Assessments for Hilltop Landscape Maintenance District
(HLMD) for Fiscal Year (FY) 2026-27
FINANCIAL IMPACT: The total proposed assessment for the Hilltop Landscape Maintenance District (HLMD) for Fiscal Year
(FY) 2026–2027 is $1,230,202. In addition, the F Y
2026–2027 proposed budget includes a $782,673
General Fund contribution to the HLMD Fund. This
General Fund contribution consists of:
$257,871 for the general benefit portion
(increased by 3 percent from the prior year)
$378,292 for salaries and benefits (25 percent),
as all district staff are budgeted within the HLMD
Fund
$146,510 as a subsidy to address the remaining
district budget deficit
Funding will be recorded as a General Fund transfer out and HLMD Fund transfer in (Account Strings:
01917090-400901; 11233731 -391994).
PREVIOUS COUNCIL
ACTION:
July 8, 2025
April 7, 2026
AGENDA
REPORT
May 26, 2026
STATEMENT OF THE
ISSUE:
Review and approval of the Preliminary Engineer’s
Report for the Hilltop Landscape Maintenance District
(HLMD) for FY 2026-27 and declaration of the City
Council’s intention to levy and collect annual
assessments.
RECOMMENDED ACTION:
ADOPT a resolution approving the preliminary Engineer’s Report for Fiscal Year 2026-27 for the Hilltop Landscape Maintenance District (HLMD); DECLARE the City
Council’s intention to increase and collect the annual
assessments; and SET a public hearing about the
proposed increased assessment on June 23, 2026, at
6:00 PM in City Council Chambers at 440 Civic Center
Plaza in the City of Richmond – Public Works
Department (Daniel Chavarria 620-5478/Jason Lacey
510-620-6920).
DISCUSSION:
On June 23, 1998, the City Council adopted Resolution No. 91-98, approving the Engineer’s Report, establishing the rate of assessment, authorizing annual increases thereof, and ordering maintenance services within the Hilltop Landscape Maintenance District (District). The rate of assessment for this District must be confirmed annually by action of the City Council.
In accordance with Section 12.60.240 of the Richmond Municipal Code and State law, the first step in this process is to order the preparation of an Engineer’s Report of assessment for the 2026-2027 Fiscal Year (FY). As required by Section 12.060.250 of the Richmond Municipal Code, a copy of the report and a property owner response form will be mailed to all owners of real property subject to the annual benefit assessment as a subsequent part of the process. The City Council will be asked to hold a public hearing and accept the Engineer’s Report to then finalize the process.
The Hilltop Landscape Maintenance District (HLMD) was established to provide essential landscaping services and maintenance within its boundaries. The District encompasses various zones, each receiving tailored maintenance based on its unique needs and characteristics. The services include, but are not limited to, landscape maintenance, irrigation system repairs, graffiti removal, and the upkeep of public sound walls and signage.
In accordance with Section 12.60.240 of the Richmond Municipal Code and relevant State law, the City Engineer has prepared the Annual Levy Report for the Hilltop Landscape Maintenance District for Fiscal Year 2026-2027 (“Engineer’s Report”). This report outlines the existing and proposed maintenance activities, describes substantial changes to be made, and estimates the costs associated with these activities.
May 26, 2026
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 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.
The total amount proposed to be assessed for the 2026-27 FY 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 2026-27. The total proposed assessment for the HLMD for the Fiscal Year (FY) 2026-2027 is $1,230,202. In addition, the City’s proposed budget includes a cash contribution amounting to $782,673. This amount includes: $257,871 to cover general benefits (increased by 3% from Prior year), $378,292 for salaries and benefits (25%) since all district staff are budgeted in the HLMD fund, and additional subsidy of $146,510 (as needed basis) to cover the gap deficit in the district budget. The cash contribution of $782,673 shall be included as a transfer out in the General Fund into the HLMD Fund budget as a transfer-in for FY 2026-27.
City staff recommend that the City Council adopt a resolution to preliminarily approve the attached preliminary Engineer’s Report and declare its intention to levy and collect assessments in the District for the fiscal year 2026-27. A public hearing on the proposed assessments will be held at the City Council’s regular meeting on June 23, 2026, at 6:00 PM in the City Council Chambers at 440 Civic Center Plaza in the City of Richmond. This hearing will provide an opportunity for property owners to review and discuss the proposed assessments before final consideration.
DOCUMENTS ATTACHED:
Attachment 1 – Resolution
Attachment 2 – Hilltop Landscape Maintenance District Engineer’s Report FY 2026-27 Attachment 3 – Notice of Public Hearing Hilltop Landscap