TO:Andrew P. Powers, City Manager
FROM:Nader Heydari, Public Works Director
DATE:May 13, 2025
SUBJECT: Landscape and Lighting Assessment District No. 79-2 FY 2025- 26 Initiating Assessments
RECOMMENDATION:
1. Adopt resolutions to initiate assessment proceedings, approve Preliminary Engineer’s Report, declare intention to levy annual assessments, and set public hearing date of June 10, 2025, for Landscape and Lighting Assessment District (LLAD) No. 79-2 FY 2025-26 Assessments.
2. Approve and authorize the City Engineer to execute the agreement with Ventura County Auditor-Controller to place LLAD assessments on the Secured Tax Rolls and distribute Collections to the City for $0.22 per assessment per parcel, plus administration and collection fees.
3. Find that this action is not a project as defined under the California Environmental Quality Act.
LEVINE ACT ITEM: No
FINANCIAL IMPACT:
No Additional Funding Requested. The proposed LLAD maximum assessments for FY 2025-26 include a 3.33 percent inflationary adjustment as previously approved by property owners.
The proposed Landscape District assessments are less than the maximum allowed rates in some benefit zones. Assessments are proposed to be adjusted for the 39 landscaping zones (including four subzones) to restore positive fund balances and cover expenditures associated with new landscaping and increased utility costs. Proposed increases range from $1.84 per year per Equivalent Benefit Unit (EBU) up to $19.52.
The proposed assessments for FY 2025-26 in the Lighting District have all been adjusted by 3.33 percent, or $0.66 per year per EBU.
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BACKGROUND:
The LLAD is a special assessment area within Thousand Oaks funding the maintenance of over 27,000 City street-trees, 17.5 million square feet of landscaping, graffiti removal, weed abatement, nearly 8,000 streetlights, 136 traffic signals, and 40 lighted pedestrian crossings along public streets. Property owners within the LLAD are assessed as part of their annual property taxes collected by the County of Ventura Assessor’s Office. Approximately 84 percent of all properties in Thousand Oaks are assessed for lighting, and 43 percent are assessed for landscaping (Attachment #1).
Assessments are based on a weighting factor using EBU to identify a parcel’s share of total assessments based on benefit received. A typical single-family residential property is assigned an EBU of 1.00, and all other property types are assigned EBUs proportionate to a single-family home. For example, a commercial property that contains three times the square footage and infrastructure as a typical residential home would be assigned an EBU of 3.00.
Public Works staff and the City’s assessment consultant performed the annual review of the budget and assessment structure for the LLAD’s 39 total landscape benefit zones (including four subzones) and six total lighting zones. As part of the review, staff considered costs charged directly to the zones, including labor, contracted services, water, electricity, and proposed capital projects. Distribution of other line-item costs was also evaluated, including consultant and County administrative fees, City overhead, and equipment rental. Finally, the amount of ad valorem revenues and fund balance contributions was also considered.
Assessments are levied annually in accordance with the Landscaping and Lighting Act of 1972, which requires an intent to levy the proposed assessments for the upcoming fiscal year, consideration of new annexations into the LLAD, and the setting of a Public Hearing date, which for this year will be June 10, 2025.
DISCUSSION/ANALYSIS:
The Preliminary Engineer’s Report (Attachment #2) reflects the proposed landscape and lighting budgets. Maximum assessment amounts are recommended to be adjusted by the 3.33 percent increase previously approved by the property owners when the District was formed.
Non-Uniform Adjustments
Landscape assessments are proposed to be adjusted in order to generate the required revenue for the special benefits received. The proposed annual LLAD No. 79-2 FY 2025-26 Initiating Assessments
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landscape assessments for FY 2025-26 range from $56.92 per EBU (Zone 4), to a maximum annual assessment of $606.00 per EBU (multiple zones).
Assessments for all 39 zones (and four subzones) are to be adjusted by varying amounts to cover increased costs, reduce reliance on ad valorem property tax revenue, and to develop reserves for future capital improvement projects.
Ad valorem property tax revenue is part of the one percent property tax levied on Thousand Oaks properties by the County of Ventura. While assessments can only be used to cover expenditures in the zones where they are collected, ad valorem revenues can be used throughout the LLAD. To fill budgetary gaps, some zones rely heavily on ad valorem revenues to lower assessment rates. Ad valorem revenues are also distributed to zones that have landscaping that is a general benefit to the community as a whole and not just those living within the zone. The assessments pay for particular and distinct (special) benefits over and above the general benefits conferred on properties located within the district or to the public at large.
All EBUs within the lighting zones across the City pay a uniform rate. In FY 2025- 26, the lighting assessment rates are proposed to be adjusted by the approved inflationary adjustment of 3.33 percent, in the amount of $0.66, for a total rate of $20.30 per EBU per year. This adjustment is necessary to cover increased maintenance costs and Southern California Edison electricity costs.
Average Assessments for LLAD 79-2
The attached FY 2025-26 Preliminary Engineer’s Report contains a proposed actual assessment rate and maximum assessment rate for every zone. The actual assessment rate is the amount levied on each property within a zone and appears on the property tax bill. The maximum assessment rate is the maximum rate a property can be assessed within that zone and includes a voter-approved annual increase of three percent or Consumer Price Index (whichever is greater).
Of the 39 landscaping zones, 25 are proposed to be assessed at the maximum rate. This results in an average District wide Landscape increase of 3.33 percent.
All properties within the Lighting District will be assessed at the maximum rate.
Average assessments per EBU for both lighting and landscaping are provided in the following table:
Average Applied Assessments for LLAD 79-2
Lighting Landscape
FY 2024-25 $ 19.64 $ 361.97
FY 2025-26 $ 20.30 $ 374.02
Change ($) $ 0.66 $ 12.05
Change (%) 3.33% 3.33%
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Resolutions to Initiate Proceedings
It is recommended City Council schedule a Public Hearing for June 10, 2025. At the Public Hearing, the Preliminary Engineer’s Report and resolutions will be presented for consideration and adoption. If approved and adopted, the final Engineer’s Report and resolutions would set the assessments for FY 2025-26. The resolutions attached (Attachment #s 3 - 5) are for initiating proceedings, approving the Preliminary Engineer’s Report for FY 2025-26 and declaring the intention to levy annual assessments.
Annexations
No annexations are proposed for FY 2025-26.
Agreement with Ventura County Auditor-Controller for Billing of Direct Assessments
Beginning July 1, 2015, the Ventura County Auditor-Controller has required an annual agreement for the billing of direct assessments for non-County supervised Districts. Staff recommends approving the agreement and authorizing the City Engineer to execute the agreement with the County of Ventura for the placement of the LLAD direct assessments on the Secured Tax Rolls and distribution of collections to the City. The cost is $0.22 per assessment per parcel, $29.00 per correction or removal, and collection fees are not to exceed one-fourth of one percent of amounts collected by the County on behalf of the City.
The LLAD has for many years provided an integral part of the City’s ability to provide excellent infrastructure and maintenance service to our citizens and aligns with City Council’s FY 2024-25 Top Ten Priorities #7, “Public Works Infrastructure Investments.”
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goals:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
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F. Provide and enhance essential infrastructure to ensure that the goals and policies of the Thousand Oaks General Plan are carried out and the City retains its role and reputation as a leader in protecting the environment and preserving limited natural resources.
PREPARED BY: Jim Taylor, Sr. Civil Engineer
Miguel Chavez, Sr. Financial Analyst
Attachments:
Attachment #1 – Overview of LLAD 79-2
Attachment #2 – Preliminary Engineer’s Report
Attachment #3 – Resolution Initiating Proceedings
Attachment #4 – Resolution Approving Preliminary Engineer’s Report
Attachment #5 – Resolution Declaring Intention to Levy Annual Assessment
Attachment #6 – Agreement with Ventura County Auditor Controller DPW: 830-40\ev\Council\2025\051325\ LLAD 79-2 FY 25-26 Initiate Assessments staff report.docx