COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Alex Posada, Director of Recreation and Parks
DATE: June 3, 2025
SUBJECT: Adoption of a Resolution Declaring to Levy and Collect the 2025 -26 Landscape District.
Description:
The City Council will consider adoption of the engineers reports and the intent to levy and collect the 2025-26 landscape district assessments.
RECOMMENDATION:
1. Approve the Engineer’s Reports for the 2025 -2026 landscape maintenance districts and special benefit zones assessment proceedings; and
2. Adopt a Resolution de claring the intent to levy and collect the property tax assessments for each of the four Landscape Maintenance Districts and the 20 Special Benefit Zones.
BACKGROUND:
During the 1980s, the City of Santa Maria established four geographic Landscape Maintenance Districts with Broadway and Stowell serving as the center point. The four “Master Districts” consist of the following: th e South Miller Street/South College Drive Landscape Maintenance District created with Resolution 81 -298 on August 4, 1981; the Northwest Landscape Maintenance District with Resolution 88 -154 on December 20, 1988; the Northeast Landscape Maintenance Distric t with Resolution 89 -51 on May 2, 1989; and the Southwest Landscape Maintenance District with Resolution 89-50 on May 2, 1989. The creation of these districts enables the City of Santa Maria to levy and collect assessments for the purposes of maintaining t he public landscaping and parks, and for nuisance abatement within each district.
Within the four “Master Districts ,” there are currently 20 Special Benefit Zones (SBZ).
Each SBZ was created at the time when a new development was built, in order to provide for the perpetual maintenance of additional public improvements associated with the development of each project. These public improvements include retention basins, parks, sidewalks, graffiti abatement, public safety, pest abatement, trees, and all public thoroughfare landscaping. The cost for maintaining the public improvements varies, based on the type and extent of public improvements in a given subdivision. This cost is distributed among all assessed properties within the specific SBZ and collected annually through property taxes.
Under the Landscaping and Lighting Act of 1972 (“the Act”), the City is authorized to provide and maintain landscaping, public lighting , public safety , appurtenant facilities, park and recreational improvements. By following the procedures set out in the Act, as well as Proposition 218 and its implementing legislation, the City can assess property owners for the special benefit received as a result of installing and maintaining these improvements.
The process of assessing property for improvements under the Act has several steps. A typical first step is annexing property into a particular part of the City’s system under the Act, and setting of the assessment for the first fiscal year. This is accomplis hed through the consent of the current property owners and action of the Council pursuant to an Engineer’s Report. The Engineer’s Report correctly apportions the costs to specific property according to the special benefit received. If particular properties receive additional benefit s, they are placed into a “zone” which receives a particularized assessment amount according to the additional special benefit received.
Assessment law, in particular Proposition 218, allows only the special benefit received by properties to be assessed. General benefits received by the public are not recoverable using assessments. The Engineer’s Report apportions or spreads these special benefit amounts to the properties to be assessed.
Amounts are assessable to property under the Act for one fiscal year. Each year at this time, the City conduct s assessment proceedings under the Act. In order to collect assessments going forward, the City must not receive a majority protest. If the City wishes to increase assessments within the meaning of the law (i.e. above the annual Consumer Price Index (CPI), then the City must follow the specialized election proceedings under Proposition 218. In addition, Proposition 218 removes former provisions of statutory law that allowed public entities to be exempt from assessment.
DISCUSSION:
The process of annexation, calculating, and levying assessments in the Landscape Maintenance Districts is outlined in the California Streets and Highways Code, which the City of Santa Maria follows in these proceedings. The City of Santa Maria’s process f or annexation, calculating, and levying of assessments has been refined by the City Attorney in compliance with state law and the most recent case law. The recommended action tonight is to meet the statutory requirements by the City Council: 1) adopting a Resolution approving the Engineer’s Reports for assessment proceedings; and 2) declaring the intent to levy and collect the property tax assessments for each of the four Landscape Maintenance Districts and the SBZ’s, and conduct tonight’s public hearing to consider any protest of the proposed assessments. If no legal protest is found, the City Council will move to approve the assessments contained in this report.
The Director of Finance has determined that the annual Consumer Price Index CPI1 rose by
3.4 percent in calendar year 2024, requiring that the 2025 district and SBZ assessments be increased by 3.4 percent to keep pace with increased costs. In addition to the increase in 3 1 U. S. Department of Labor, Bureau of Labor Statistics for Urban Los Angeles-Riverside-Orange County areas – includes Santa Maria for the period ending December 31, 2016.
CPI, state law has required the City to use the Department of La bor Statistics prevailing wage rates for our geographic area for all contracted services. This has had a significant impact on the rates being paid to our contractors. This increase will need to be addressed by future increases in assessment rates in ord er to keep pace with the prevailing wage requirement.
The proposed assessments are intended to provide funding for district operations over the next fiscal year and are consistent with past City Council action. The action before City Council not only authorizes the levying and collection of the property tax assessment for the Landscape Maintenance Districts and the SBZs, but also authorizes the Director of Finance to transfer funds out of appropriated reserves in order to finance operational costs (unanticipated expenses or project overages) in the districts during the next fiscal year as identified by the Director of Recreation and Parks.
Fiscal Considerations:
The attached supportive documents present the specific financing related to each of the Landscape Maintenance District Assessments for the “Master Districts” and the SBZs.
To summarize, the Landscape Maintenance Districts and the SBZ’s generate approximately $5.6 million in revenue to fund direct maintenance services and district operation costs. This revenue is collected from approximately 9,888 residential and 615 commercial properties in the districts. Since everyone who lives in the City of Santa Maria benefits from the well-kept, public easement landscaped areas, the City’s General Fund pro vides a financial contribution, known as the “City’s General Benefit," in the amount of $928,780. This contribution is made on behalf of the estimated 23,500 (commercial and residential) properties that existed prior to the creation of the Landscape Maintenance Districts. As new development occurs in older parts of the City, those properties are annexed into a Landscape Maintenance District or SBZ, so over time the General Benefit will begin to diminish.
During F iscal Year 2024-25, the Landscape Maintenan ce Districts experienced an across-the-board increase in costs of providing daily operations, renovation and project management. The most significant cost is irrigation water. In order to control the cost of water, staff has reduced watering and, as budgets permit converted non-recreational turf to low water use plantings. These conversions will result in long-term savings but require a significant upfront expenditure. Accordingly, Landscape Maintenance Districts will continue to face increased costs.
In 2025, there will be additional revenue from the new projects at Centennial Gardens, Elements Mixed Use, Skyview Homes, and others, into their respective districts; however, there will also be additional costs associated with the new District Landscape
Impact to the Community:
Landscaping along the City’s major arterials and surrounding residential and commercial developments in the City are a positive indication of the fine quality of life in Santa Maria and it is aesthetically appealing to residents and visitors . Accordingly, the City’s landscaping provides for the community’s enjoyment, neighborhood cohesiveness, and beauty. And the assessments herein provide for perpetual care of these public areas and safeguard the assets of surrounding property owners.
Attachments:
A: Resolution- Intent to Levy and Collect
Exhibit A- Engineer Report Northwest
Exhibit B- Engineer Report Northeast
Exhibit C- Engineer Report Southwest
Exhibit D- Engineer Report South Miller Street- South College Drive Exhibit E- FY25-25 District Assessment Rolls
Exhibit F – Landscape Maintenance Districts Map