TO:Andrew P. Powers, City Manager
FROM:Nader Heydari, Public Works Director
DATE:April 14, 2026
SUBJECT: Landscape and Lighting Assessment District No. 79-2 FY 2026- 27 Initiating Assessments and Annexations
RECOMMENDATION:
1. Adopt resolutions to initiate annexation and assessment proceedings, declare intention to levy annual assessments, approve the Preliminary Engineer’s Report, and set public hearing date of June 9, 2026, for Landscape and Lighting Assessment District (LLAD) No. 79-2 FY 2026-27 Assessments.
2. Adopt resolutions declaring intention to annex parcels into LLAD No. 79-2 and approving the Preliminary Annexation Engineer’s Report.
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 2026-27 include a 3.02 percent inflationary adjustment as previously approved by property owners.
Assessments for 39 landscaping zones (including four subzones) are proposed to be adjusted to reflect operating cost increases, support maintenance of landscaping improvements that provide a special benefit to properties within the zones, and reduce reliance on ad valorem property tax revenue. The proposed increases range from $1.70 to $18.28 per year per Equivalent Benefit Unit (EBU).
In certain benefit zones, the proposed assessments remain below the maximum allowed rates. The proposed assessments for FY 2026-27 in the Lighting District have all been adjusted by 3.02 percent, or $0.62 per year per EBU.
LLAD No. 79-2 FY 2026- 27 Initiating Assessments and Annexations April 14, 2026
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BACKGROUND:
The LLAD is a special assessment district that funds the maintenance of landscaping and lighting improvements that provide special benefits to properties within the district. These improvements include the maintenance of more than 27,000 City street trees, approximately 17.5 million square feet of landscaped areas, 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 Ventura County Assessor’s Office. Approximately 84 percent of all properties in Thousand Oaks are assessed for lighting, and approximately 43 percent are assessed for landscaping (Attachment #1).
Assessments are based on a weighting factor using EBUs 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 were 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 9, 2026.
DISCUSSION/ANALYSIS:
Annual Assessment
The FY 2026-27 Preliminary Engineer’s Report (Attachment #2) reflects the proposed landscape and lighting budgets and corresponding assessment rates.
The maximum assessment rate is the maximum rate a property may be assessed within a zone and includes the voter-approved annual increase of three percent or Consumer Price Index (CPI), whichever is greater. The maximum assessment amounts are recommended to be adjusted by the allowable annual inflationary LLAD No. 79-2 FY 2026- 27 Initiating Assessments and Annexations April 14, 2026
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increase of 3.02 percent, as consistent with the inflationary adjustment provisions approved by the property owners when the District was formed.
Non-Uniform Adjustments
Landscape assessment rates are proposed to be adjusted to generate sufficient revenue to fund the improvements that provide special benefits to properties within each zone. The proposed annual landscape assessments for FY 2026-27 range from $58.62 per EBU (Zone 4), to a maximum annual assessment of $624.28 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 offset funding 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. For FY 2026- 27, the lighting assessment rates are proposed to be adjusted by the approved inflationary adjustment of 3.02 percent, in the amount of $0.62, for a total rate of $20.92 per EBU per year. This adjustment is necessary to cover increased maintenance, electricity, and related administrative costs.
Average Assessments for LLAD 79-2
The attached FY 2026-27 Preliminary Engineer’s Report includes both proposed actual assessment rates and maximum allowable assessment rates for each zone.
The actual assessment rate is the amount levied on each property within a zone and appears on the property tax bill. The maximum allowable assessment rate reflects the voter-approved annual inflationary adjustment of 3.0 percent or CPI (whichever is greater).
Of the 39 landscaping zones, 25 are proposed to be assessed at (or near) the maximum rate, resulting in an average Districtwide landscape increase of 3.02 percent. All properties within the Lighting District will be assessed at the maximum allowable rate. Average applied assessments per EBU for both lighting and landscaping are provided in the table below:
LLAD No. 79-2 FY 2026- 27 Initiating Assessments and Annexations April 14, 2026
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Average Applied Assessments for LLAD 79-2 (per EBU)
Landscape Lighting
FY 2025-26 $ 374.02 $ 20.30
FY 2026-27 $ 385.48 $ 20.92
Change ($) $ 11.46 $ 0.62
Change (%) 3.02% 3.02%
Resolutions to Initiate Proceeding
The attached resolutions (Attachment Nos. 3 through 5) initiate proceedings, declare the intention to levy annual assessments, and approve the Preliminary Engineer’s Report for FY 2026-27. Staff also recommend that City Council schedule a Public Hearing for June 9, 2026. At that Public Hearing, City Council will consider the Final Engineer’s Report and Final Annexation Engineer’s Report, as well as adopt the resolutions confirming the annual levy and collection of assessments for FY 2026-27 City Council will also consider approval of the Agency Billing Agreement and authorize the Finance Director to execute the agreement.
Annexation to LLAD 79-2
The following property is proposed for annexation into the new Landscape Assessment District Zone 40: the MBK Rental Living development at the former Timber School site (1872 Newbury Road at Newbury Road and Kelley Road, in Newbury Park). City Council will tabulate ballots submitted for the proposed annexation, and if there is no majority protest, adopt the resolution approving the annexation of additional territory into the District. The Preliminary Annexation Engineer’s Report, the Resolution Declaring the Intention to Annex into LLAD 79- 2, and the Resolution Approving the Preliminary Annexation Engineer’s Report are included as Attachment Nos. 6 through 8.
Agreement with Ventura County Auditor-Controller for Billing of Direct Assessments
The Ventura County Auditor-Controller typically distributes the annual assessment administration package in April, including the Billing of Direct Assessments Agreement. Staff will process the required materials upon receipt, and the Billing of Direct Assessments Agreement will be presented for City Council consideration as part of the annual public hearing on June 9, 2026.
LLAD No. 79-2 FY 2026- 27 Initiating Assessments and Annexations April 14, 2026
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The LLAD has long been an integral component of the City’s ability to provide high- quality infrastructure and landscaping throughout the community and aligns with City Council’s FY 2025-26 Top Ten Priorities #9, “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.
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 Confirming Preliminary Engineer’s Report Attachment #5 – Resolution Declaring Intention to Levy Annual Assessment
Attachment #6 – Preliminary Annexation Engineer’s Report Attachment #7 – Resolution Declaring Intention to Annex into LLAD 79-2 Attachment #8 – Resolution Approving Preliminary Annexation Engineer’s Report
DPW: 830-40\ev\Council\2026\041426\ LLAD 79-2 Initiate Proceedings staff report.docx