Item Number: 17
City Council / Board of Directors
Written Communications
Meeting of: June 2, 2026
Submitted By:
Fredy Bonilla, City Engineer
Subject:
Annual Confirmation of Maintenance Assessment District for Fiscal Year 2026/2027 Recommendation:
That the Honorable City Council:
(1) Approve Resolution Nos. 26-027, 26-030, 26-033, and 26-036 authorizing the initiation proceedings for the annual levy of assessments for the Maintenance Assessments Districts, Drainage Facilities Assessment Districts, Landscaping Maintenance Assessment Districts, and the City-Wide Streetlight Assessment District for Fiscal Year 2026/2027;
(2) Approve Resolution Nos. 26-028, 26-031, 26-034, and 26-037 preliminarily approving consolidated Engineer’s Reports filed in support of the levy of assessments for Fiscal Year 2025/2026; and
(3) Approve Resolution Nos. 26-029, 26-032, 26-035, and 26-038 declaring its intention to levy the maintenance assessment districts for Fiscal Year 2026/2027 and setting a Public Hearing date of June 16, 2026.
Fiscal Impact:
The recommended approvals will have no fiscal impact. No additional appropriations are required, as the planned expenditures have been incorporated into the proposed Fiscal Year 2026/2027 budget. The table below outlines the budget account codes and the corresponding revenue amounts allocated for each assessment district.
District Budget Account No. Revenue Budget Amt.
LMAD 1 3705501-40180 $174,950
LMAD 2 3705502-40180 $278,458
LMAD 3 3705503-40180 $175,462
LMAD 4 3705504-40180 $2,955
LMAD 5 3705505-40180 $173,351
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LMAD 6 3705506-40180 $805,851
LMAD 7 3705507-40180 $36,576
LMAD 8 3705508-40180 $111,261
DFAD 1 3705530-40180 $503,281
DFAD 2 3705531-40180 $85,112
DFAD 3 3705532-40180 $86,905
MAD 1 3705550-40180 $89,268
MAD 2 3705551-40180 $72,549
MAD 3 3705552-40180 $1,654
SLAD 2004501-40180 $2,090,733
MAD 3 was established in 2020 and remains undeveloped. As a result, it was not included in the proposed Fiscal Year 2026/2027 budget. The projected revenue amounts listed above are based on the proposed Engineer’s Reports, outlining the number of parcels and allowable levy amount by assessment district.
Strategic Plan Goal:
This item aligns with Goal E, Strategy 1 in the Strategic Plan, “Invest in Infrastructure” and “Implement the City’s Capital Improvement Program to meet community needs;” and Goal A, “Financial Sustainability.” Annual assessment revenue supports the expenses for operations, maintenance, and improvement of associated landscaping, parks, and infrastructure.
Background:
City Wide Assessment Districts were formed in accordance with the Landscape and Lighting Act of 1972, pursuant to Section 22605 of the Streets and Highways Code, and Section 22500 et seq., as per the requirements set forth in Proposition 218.
In 1987, the City Council established the first Landscape Maintenance Assessment District (LMAD) to provide ongoing funding for the maintenance of landscaped areas along major and secondary arterial roadways adjacent to residential developments.
In 2003, the first Drainage Facilities Assessment District (DFAD) was created to support the continued maintenance of drainage basins and channels within residential developments.
In 2006, the City Council established the first Maintenance Assessment District (MAD) to fund the long-term maintenance of parks located within residential communities.
In July 2013, the City-Wide Street Lighting Assessment District (SLAD) was formed to supplement funding for the ongoing maintenance of the City’s Street lighting, safety lighting, and traffic signal systems and facilities.
As outlined in Section 22624 of the Streets and Highways Code, the City Council is first required to initiate proceedings by ordering the preparation of the Engineer’s Reports, 4 7
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preliminarily approving the reports, and declaring the intent to levy assessments and set the date for the Public Hearing. This process ensures the public has the opportunity to review the Engineer’s Reports and allows staff to make any necessary revisions. The final Engineer’s Reports are then presented for consideration at a subsequent public hearing.
Discussion:
Currently, the City has a total of fifteen (15) assessment districts: eight (8) LMADs, three (3) DFADs, three (3) MADs, and one (1) City-Wide SLAD. The Landscape and Lighting Act of 1972 requires an annual confirmation of the assessments to be applied for each parcel within the assessment districts, along with an Engineer's Report. The Engineer's Report for each assessment district describes the following: improvements that are maintained; services provided for maintenance and operations; estimated annual expenses; properties assessed in the district; the method of appointment of the assessment; the calculated assessment per benefit unit; and estimated assessment revenues.
The chart below listed each assessment district, the assessment amount per benefit unit, year the assessment district was formed, whether a cost inflator is allowed and, if so, the recommend increase for Fiscal Year 2026/2027.
Type No. Assessment
per Benefit Unit
Year
Formed
Cost
lnflator
Allowed?
Increase
LMAD 1 $28.14 1987 No 0%
LMAD 2 $147.33 1989 No 0%
LMAD 3 $69.38 1990 No 0%
LMAD 4 $1.64 1997 No 0%
LMAD 5 $141.84 2002 Yes 0%
LMAD 6 $144.70 2003 Yes 0%
LMAD 7 $105.45 2005 Yes 0%
LMAD 8 $165.32 2005 Yes 0%
DFAD 1 $216.46 2003 Yes 0%
DFAD 2 $69.63 2003 Yes 0%
DFAD 3 $128.86 2006 Yes 0%
MAD 1 $173.00 2006 Yes 0%
MAD 2 $252.58 2006 Yes 0%
MAD 3 TBD 2020 Yes 0%
SLAD City-Wide $28.68 2013 Yes 18.12%
A cost escalation of the assessment rate is allowed for cost increases of electric power, administrative costs, and inflation on cost of living. For fiscal year 2026/2027, SLAD is increasing by 18.12%, there is no recommended increases for LMADs 5-8, DFADs 1-3 and MADs 1-3, as those districts have adequate cash balances in their corresponding funds. The Engineer's Reports include more details regarding the number of parcels and how the rates are applied. These reports can be revised, if needed, to be consistent with 4 7
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the final FY 2026/2027 budget revenues and expenses. The final reports will be presented during the scheduled Public Hearing. If the attached resolutions are approved, the Public Hearing will be held on June 16, 2026.
Therefore, staff recommends that the City Council:
(1) Approve Resolution Nos. 26-027, 26-030, 26-033, and 26-036 authorizing the initiation proceedings for the annual levy of assessments for the Maintenance Assessments Districts, Drainage Facilities Assessment Districts, Landscaping Maintenance Assessment Districts, and the City-Wide Streetlight Assessment District for Fiscal Year 2026/2027;
(2) Approve Resolution Nos. 26-028, 26-031, 26-034, and 26-037 preliminarily approving consolidated Engineer’s Reports filed in support of the levy of assessments for Fiscal Year 2025/2026; and
(3) Approve Resolution Nos. 26-029, 26-032, 26-035, and 26-038 declaring its intention to levy the maintenance assessment districts for Fiscal Year 2026/2027 and setting a Public Hearing date of June 16, 2026.
Staff remains available for any questions the Council may have.
Prepared By:
Mel Krejckant, Public Works & Water Administrative Manager Attachments: A. Maintenance Assessment District Maps
B. Engineer’s Reports
C. Resolution No. 26-027
D. Resolution No. 26-028
E. Resolution No. 26-029
F. Resolution No. 26-030
G. Resolution No. 26-031
H. Resolution No. 26-032
I. Resolution No. 26-033
J. Resolution No. 26-034
K. Resolution No. 26-035
L. Resolution No. 26-036
M. Resolution No. 26-037
N. Resolution No. 26-038