City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: JULY 14, 2026 FROM: FINANCE DEPARTMENT WARDS: 2
SUBJECT: PUBLIC HEARING – RESOLUTION CONFIRMING DIAGRAM AND ASSESSMENT FOR LANDSCAPE MAINTENANCE DISTRICT 88-1 (SYCAMORE HIGHLANDS) AND LEVYING ASSESSMENTS FOR FISCAL YEAR (FY) 2026/27 ISSUE:
Conduct a Public Hearing for the purpose of receiving comments relative to the FY 2026/27 Landscape Maintenance District No. 88-1 assessments and adopt a resolution authorizing the City of Riverside to confirm the diagram and assessments for Landscape Maintenance District No. 88-1 (Sycamore Highlands) and levy assessments on all assessable lots and parcels of land therein for the FY 2026/27.
RECOMMENDATIONS:
That the City Council:
Conduct a Public Hearing for the purpose of receiving comments related to FY 2026/27 Landscape Maintenance District No. 88-1 assessments; and Adopt a resolution authorizing the City of Riverside to confirm the diagram and assessments for Landscape Maintenance District No. 88-1 (Sycamore Highlands) and levy assessments on all assessable lots and parcels of land therein for the FY 2026/27.
BACKGROUND:
In September 1988 Landscape Maintenance District 88-1 was formed under the provisions of the Landscaping and Lighting Act of 1972. The District was originally formed in conjunction with a Development Agreement for the Lusk-Highlander project. Pursuant to the requirements established by Proposition 218, Landscape Maintenance District 88-1 was then confirmed by property owner ballot in July 1997. The original construction of the improvements was funded by the Highlander Community Facilities District 90-1. The Landscape Maintenance District 88-1 was formed to assess property owners for the ongoing maintenance costs associated with those improvements within the district areas.
On February 24th, 2026, the City Council adopted Resolution No. 24356, ordering the preparation of the Preliminary Annual Engineer’s Report for Landscape Maintenance District 88-1 (Sycamore Highlands). The attached report outlines the estimated cost of maintaining the landscaping and administration of the District for FY 2026/27 as well as the method of apportioning those costs to the property owners within the District. The City assesses all parcels within the District annually, regardless of development status.
On May 19th, 2026, the City Council adopted Resolution 24375 approving the Preliminary Annual Engineer's Report for Landscape Maintenance District No. 88-1 (Sycamore Highlands) and setting a public hearing for July 14th, 2026, to approve the Final Annual Engineer's Report for Landscape Maintenance District No. 88-1 and authorizing the levy of special assessments within the District.
DISCUSSION:
The procedures of the Landscaping and Lighting Act of 1972 require the City Council to hold a Public Hearing prior to the adoption of a resolution confirming the Annual Engineer’s Report and establishing the FY 2026/27 annual assessments for Landscape Maintenance District No 88-1 (Sycamore Highlands.) The District formation process set an annual assessment increase based on the cumulative percentage increase, if any, in the Consumer Price Index for all Urban consumers (CPI-U) for the Los Angeles -Riverside-Orange County, California Standard Metropolitan Statistical area as published by the US Department of Labor Bureau of Labor Statistics ("the Bureau"). In December 2017, the Bureau discontinued the original index and replaced it with two new indexes (Riverside -San Bernardino-Ontario and Los Angeles-Long Beach-Anaheim). Starting in FY 2019/20, the City began using the Riverside-San Bernardino-Ontario Index, as it most closely mirrors local assessed valuation changes.
Using the prior index, the adjustment was calculated based upon a combination of the cumulative increases in the original index as it was in December of each year over the base index in December 1996 of 158.3. The original index ended with a cumulative increase of 63.75% over the base year. To use the new index, which is published every other month, the escalation period was changed to January and began at a scale of 100 for FY 2018/19. Adding the cumulative percentage increase of the new Riverside-San Bernardino-Ontario Index of 38.33% to the ending cumulative increase of the original index of 63.75% results in a cumulative percentage change total for both indexes of 102.08%. Using this methodology, the maximum allowed assessment for FY 2026/27 is $117.21 ($58.00 base year increased by a cumulative factor of 102.08%). This represents a 4.34% increase from the prior fiscal year.
At the end of each fiscal year staff review actual expenditures against collected assessments and any unspent balance remains with the District to cover expenditures in the following year. The estimated landscape maintenance costs for FY 2026/27 for the District are $145,362. There is an existing agreement between the City and Castlerock Apartment Homes (formerly Riverside Sycamore Apartments) which allows the property owner to maintain a section of landscaping, receiving proportional credit to the property. That credit for FY 2026/27 is estimated to be $9,259.53. The annual assessment for the 2026/2027 fiscal year is $117.21 per residential parcel or equivalent dwelling unit (EDU), which is the maximum allowed assessment. This, minus the Castlerock credit, equals a total proposed annual assessment of $113,810.15. The difference between estimated costs and estimated revenue (due to the credit) indicates a contribution of $31,551.85 to be covered by the General Fund and any remaining funds from FY 2025/26.
The District is scheduled to expire in FY 2026–27. As the expiration date approaches, staff will coordinate with the Finance Department and City Management to evaluate available options moving forward. Additional information will be provided at a later date.
FISCAL IMPACT:
The total fiscal impact for the estimated landscape maintenance costs within the District for FY 2026/27 is $145,362; the assessment per EDU will be $117.21. Although the maximum allowable assessment is proposed, the credit due to the Castlerock Apartment Agreement and additional city obligations will require an estimated General Fund contribution in the amount of $31,552. Funding is included in the adopted FY 2026/27 budget to support this General Fund contribution.
Prepared by: Meline Carranza, Debt and Treasury Manager Approved by: Sergio Aguilar, Deputy Finance Director
Certified as to
availability of funds: Julie Nemes, Interim Finance Director Approved by: Edward Enriquez, Acting City Manager/Chief Financial Officer/City Treasurer
Approved as to form: Rebecca McKee-Reimbold, Interim City Attorney Attachments:
Resolution confirming the diagram and levying the assessment for FY 26-27 Preliminary 2026-2027 Sycamore Highlands Landscape Maintenance District Engineer’s Report Resolution No. 24375 declaring intent to levy and collect assessments for FY 26-27 Presentation
Sycamore Highlands Maintenance District Round 3 ● Page 2