Agenda Item: 5
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: July 8, 2025
SUBJECT: RESOLUTIONS OF INTENTION TO LEVY INCREASED
ASSESSMENTS FOR LMD ZONES T44, T48, AND T62 IN FY 2026- 27, AND TO ESTABLISH PROCEDURES PURSUANT TO
PROPOSITION 218 AND AB 2257
DEPARTMENT: Administrative Services
PRESENTER: Andrew Adams
RECOMMENDED ACTION
City Council:
1. Adopt a Resolution of Initiation to begin proceedings to levy increased assessments commencing in Fiscal Year 2026-27 for Landscaping Zones T44 – Bouquet Canyon, T48 – Shadow Hills, and T62 – Canyon Heights within the City of Santa Clarita Landscaping and Lighting District, and direct the Engineer to prepare and file a report pursuant to Article 4, Chapter 1 of the Landscaping and Lighting Act of 1972.
2. Adopt a Resolution of Intention declaring the City of Santa Clarita’s intent to levy and collect increased assessments for Landscaping Zones T44 – Bouquet Canyon, T48 – Shadow Hills, and T62 – Canyon Heights within the City of Santa Clarita Landscaping and Lighting District; preliminarily approve the Engineer’s Report; and initiate a property owner protest ballot proceeding for Fiscal Year 2026-27, in accordance with Article XIIID of the California Constitution, by calling a public hearing and submitting the proposed assessments to qualified property owners.
3. Adopt a Resolution establishing rate-setting procedures for Landscape Maintenance Districts and Zones—including LMD Zones T44, T48, and T62—in accordance with Proposition 218 and Government Code Sections 53759.0 through 53759.2 (including AB 2257).
BACKGROUND
The City of Santa Clarita’s (City) Landscape Maintenance District (LMD), established under the Landscaping and Lighting Act of 1972 (the “1972 Act,” Streets and Highways Code §§ 22500 et
seq.), levies assessments to fund landscape maintenance services that enhance property values, aesthetics, and community livability across 62 zones. These zones encompass over 2,300 acres of landscaped areas, including street medians, parkways, three parks, 29 miles of paseos, 60,000 trees, and 46 miles of landscaped medians.
Landscape Maintenance District Zones T44 (Bouquet Canyon), T48 (Shadow Hills), and T62 (Canyon Heights) - located on the eastern side of Copper Hill Drive and covering 622 parcels - face ongoing funding deficits due to static assessment rates resulting from the absence of consumer price index (CPI) adjustments in the zones’ methodologies and Proposition 218 property owner approval requirements, combined with rising costs for labor, water, and equipment. Over recent years, the City has significantly reduced service levels in these zones as a cost containment strategy; however, this has not stemmed the funding shortfall nor delivered the level of maintenance the community needs.
The City proposes increasing assessments in response to property owner feedback collected through extensive outreach, which included:
• A March 2025 Citywide press release
• Brochures mailed to all 622 property owners in April 2025 • Five outreach events from April through June 2025 (three in-person, two virtual) • Doorhangers distributed in June 2025 summarizing assessment scenarios and providing a QR code linking to a recorded meeting and survey on the LMD website
Of the property owners we engaged through outreach efforts, there was overwhelming support for increased assessments when tied to enhanced services. Respondents consistently prioritized improvements such as upgraded landscaping and more reliable maintenance, as reflected in the attached Engineer’s Report. Failure of the ballot in any zone, given the unsustainable financial conditions, would necessitate substantial reductions in services (such as tree trimming and emergency response) or potentially require the City to consider vacating the zone entirely, shifting maintenance responsibilities to individual property owners.
Legal Framework and Compliance
Proposition 218, approved by California voters in November 1996, amended the California Constitution (Articles 13C and 13D) to require that assessments be proportionate to the special benefit conferred on each parcel; not exceed the reasonable cost of that proportional special benefit; and, for increased assessments, be approved by property owners through a mailed ballot process, with annual Consumer Price Index (CPI) adjustments permitted if included in the property owner-approved assessment methodology.
The City’s 62 LMD zones, including T44, T48, and T62, were established under the 1972 Act, with some predating Proposition 218 and others compliant at formation. Proposed assessment increases must comply with both the 1972 Act and Proposition 218, supported by an Engineer’s Report quantifying special benefits and costs.
The majority of existing LMD zones already include a CPI adjustment in their assessment methodologies, which allows rates to keep pace with inflation and maintain service levels
without requiring a new ballot process. However, Zones T44, T48, and T62 lack CPI indexing and must therefore go through a Proposition 218 ballot process to increase rates and add inflationary adjustments.
Proposed Assessments and Service Enhancements
Based on feedback from property owners, staff proposes increasing assessments as follows to generate approximately $224,710 in additional annual revenue, enabling substantial increases in landscape maintenance and improved aesthetics:
Zone Parcels Current
Rate
Proposed
Rate
Increase
($)
Annual Revenue
Increase
T44 (Bouquet Canyon) 302 $300 $600 $300 $90,600
T48 (Shadow Hills) 105 $455 $1,125 $670 $70,350
T62 (Canyon Heights -
Residential)
214 $600 $875 $275 $58,850
T62 (Canyon Heights -
Commercial)*
1 $600 $875 $275 $4,910
Total 622 - - - $224,710
* Note: The commercial parcel in Zone T62 (1.764 acres, APN 3244-119-054) is assessed at
3.57 Equivalent Benefit Units (EBUs) per acre (6.2974 EBUs total), proportionate to special benefits conferred, as detailed in the Engineer’s Report.
The increased assessments will not only provide enhanced landscape maintenance but also ensure sustained upkeep of aging infrastructure, including v-ditches, backflow devices, and irrigation systems.
Ballot Process and Rate-Setting Procedures
Staff recommends that Council adopt the resolution establishing Assessment Setting Procedures to implement Assembly Bill 2257 (“AB 2257,” Government Code §§ 53759.1-53759.2, effective January 1, 2025). Under these procedures, in addition to the rights of property owners within LMD Zones to submit a ballot in favor of or opposed to the assessment under Proposition 218 (summarized below), the property owners will be provided an opportunity to submit written objections under AB 2257. A written objection is required to identify a substantive reason why a property owner asserts that a proposed assessment does not comply with legal requirements, and the City is required to provide a substantive written response at the public hearing when the Council will consider approval of the proposed assessments. These procedures under AB 2257 are intended to provide an opportunity for the City to resolve substantive concerns from property owners’ prior approval of an assessment, and a property owner is required to “exhaust administrative remedies” by submitting a timely written objection to the City as a condition of filing litigation to challenge the assessment.
The adoption of the proposed resolutions will establish the procedures for a Proposition 218- compliant property owner ballot proceeding and rate-setting framework aligned with both Proposition 218 and AB 2257. These resolutions will direct that ballots and notices be mailed to
the 622 property owners in Zones T44, T48, and T62; set a public hearing on October 14, 2025, to review objections and tabulate ballots (with no majority protest if ballots favoring the increase outweigh opposition); and, if approved, implement the new rates and CPI adjustments effective Fiscal Year 2026-27.
X
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
If property owners approve the proposed assessment increases, the result will be increased revenues within Landscape Maintenance District (LMD) Zones T44 (Bouquet Canyon), T48 (Shadow Hills), and T62 (Canyon Heights). These additional funds will support the continued provision of landscape maintenance and related services within the respective communities.
ATTACHMENTS
FY 2027 LLD Initiation Resolution
FY 2027 LLD Intent Resolution
Resolution - Prop 218 AB 2257 Procedures
FY 2025-26 Engineer's Report T44 T48 T62 (available in the City Clerk's Reading File)