TO:Andrew P. Powers, City Manager
FROM:Nader Heydari, Public Works Director
DATE:June 9, 2026
SUBJECT: Landscape and Lighting Assessment District No. 79-2 FY 2026- 27 Annual Levy and Annexations
RECOMMENDATION:
1. Adopt resolution confirming the approval of the Final Engineer’s Report for Landscape and Lighting Assessment District (LLAD) No. 79-2.
2. Adopt resolution ordering the annual levy of assessments for FY 2026-27.
3. Adopt resolution approving the Final Annexation Engineer’s Report for LLAD No. 79-2 FY 2026-27 annexation territory.
4. Tabulate the assessment ballots submitted and not withdrawn, regarding the proposed annexation and declare the results.
5. If no majority protest, adopt resolution ordering the annexation of property to LLAD No. 79-2 and levying assessments for the annexed property for FY 2026-
27. 6. Approve and authorize the Finance Director to execute the Billing of Direct Assessments Agreement with the Ventura County Auditor-Controller for placement of the City‘s LLAD assessments on the Secured Tax Roll and remittance of collected assessments to the City, including applicable direct assessment line fees of $0.40 per parcel, correction/removal charges of $30.00 per correction or removal, and County administration and collection fees not to exceed one-fourth of one percent (0.25%) of the amounts collected.
7. Find that this action is not a project as defined under the California Environmental Quality Act.
LLAD No. 79-2 FY 2026-27 Annual Levy and Annexations
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LEVINE ACT ITEM: No
FINANCIAL IMPACT:
No Additional Funding Requested. The Proposed FY 2026-27 special assessment revenue budget consists of $6,027,000 in the Landscape District Fund, and $589,000 in the Lighting District Fund, which includes a 3.02 percent inflationary adjustment as previously approved by property owners. If the annexation is approved, additional assessment revenue would be generated from the annexation territory; any related budget adjustments will be prepared as needed. In addition, the City will incur Ventura County billing and collection charges associated with placing LLAD assessments on the secured tax roll, as provided in the direct assessment agreement, and is included in the FY 2026-27 Landscape and Lighting District Funds budgets.
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.
Assessments are based on a weighting factor using equivalent benefit units (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.
On April 14, 2026, City Council adopted resolutions to initiate the annual levy of LLAD 79-2 assessments for FY 2026-27, initiate annexation of additional territory into the District, set a public hearing for June 9, 2026, and approve the Preliminary Engineer’s Report and Preliminary Annexation Engineer’s Report.
LLAD No. 79-2 FY 2026-27 Annual Levy and Annexations
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Following that action, the City has received the annual assessment administration package from the Ventura County Auditor-Controller, including the Billing of Direct Assessments Agreement, for placement of the City’s LLAD assessments on the secured tax roll and remittance of collected assessments to the City.
DISCUSSION/ANALYSIS:
Annual Assessment
The FY 2026-27 Final Engineer’s Report (Attachment #1) reflects the proposed landscape and lighting budgets and corresponding assessment rates. The assessment adjustment formula authorizes an annual increase to the maximum assessment rates equal to the greater of inflation (based on the Consumer Price Index - CPI) or three percent (3.00%). The maximum assessment amounts are recommended to be adjusted by the allowable annual inflationary increase of 3.02 percent, 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 the revenue necessary 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 landscape zones (and four subzones) are proposed to be adjusted by varying amounts, as reflected in the Final Engineer’s Report, 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 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.
LLAD No. 79-2 FY 2026-27 Annual Levy and Annexations
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All lighting zone EBUs 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 Final Engineer’s Report includes both proposed actual assessment rates and maximum allowable assessment rates for each zone. The maximum allowable rate reflects the voter-approved annual inflationary adjustment of 3.00 percent or CPI, whichever is greater. For FY 2026-27 the CPI is 3.02 percent. The actual assessment rate is the amount levied on each property within a zone and appears on the property tax bill.
To fund the FY 2026-27 budgeted costs, the proposed districtwide applied landscaping assessment reflects an average increase of 3.02 percent compared to the prior year’s levied rate. Twenty-five of the 39 landscaping zones are proposed to be assessed at or near their maximum allowable rates. The remaining 14 landscaping zones are proposed below their maximum allowable rates based on projected costs and available funding resources, as shown in the FY 2026-27 Final Engineer’s Report. 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:
Average Applied Assessments for LLAD 79-2 (per EBU)
Landscaping Lighting
FY 2025-26 $374.02 $ 20.30
FY 2026-27 $385.29 $ 20.92
Change ($) $ 11.27 $ 0.62
Change (%) 3.02% 3.02%
Resolutions for Public Hearing Actions
Following City Council’s review of the Final Engineer’s Report, City Council will conduct the public hearing, receive public comment, and, upon close of the public hearing, consider adoption of the resolution Confirming the Final Engineer’s Report (Attachment #2) and the resolution Ordering Levy and Collection of Assessments for FY 2026-27 (Attachment #3).
LLAD No. 79-2 FY 2026-27 Annual Levy and Annexations
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Annexations to LLAD 79-2
The MBK Rental Living development at the former Timber School site at 1872 Newbury Road at Newbury and Kelley Roads in Newbury Park is proposed to be annexed into the new Landscape Assessment District Zone 40. Zone 40 is a new landscape zone being established to provide landscape maintenance services for the MBK Rental Living property. Following City Council’s review of the Final Annexation Engineer’s Report (Attachment #4), City Council will conduct the public hearing, receive public comment, and receive and tabulate the ballots submitted by the assessed property owners. Upon close of the public hearing and certification of the ballot tabulation results, City Council will consider adoption of the annexation related resolutions and documents, including the Resolution Approving the Annexation Engineer’s Report (Attachment #5), the Certificate of Election Results, and the Resolution Ordering the Annexation and Collection of Assessments (Attachment #6).
Agreement with Ventura County Auditor-Controller for Billing of Direct Assessments
As of July 1, 2015, the Ventura County Auditor-Controller requires an annual Billing of Direct Assessments Agreement for non-County supervised Districts. The FY 2026-27 Billing of Direct Assessments Agreement is included as Attachment #7 and is presented for City Council approval as part of this item, including authorization for the Finance Director to execute the agreement. The agreement provides for placement of the City’s LLAD direct assessments on the secured tax roll and for remittance of collected assessments to the City. It also sets the applicable billing rate of $0.40 per assessed parcel, a rate of $30.00 per correction or removal, and an administration and collection fee not to exceed one-fourth of one percent (0.25%) of the amounts collected by the County on the City’s behalf.
Conclusion
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.”
LLAD No. 79-2 FY 2026-27 Annual Levy and Annexations
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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 – Final Engineer’s Report
Attachment #2 – Resolution Confirming Approval of Final Engineer’s Report
Attachment #3 – Resolution Ordering Levy and Collection of Assessments Attachment #4 – Final Annexation Engineer’s Report
Attachment #5 – Resolution Approving Annexation Engineer’s Report Attachment #6 – Resolution Ordering the Annexation and Collection of Assessments
Attachment #7 – Agreement with Ventura County Auditor Controller DPW: 830-40\ev\Council\2026\060926\LLAD 79-2 Levying of Annual Assessments staff report.docx