TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
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Landscape and Streetlight Maintenance District Assessment for Fiscal Year 2026-27.
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RECOMMENDATION
1) Adopt Resolution No. 2026-042 directing the filing of an annual report; 2) adopt Resolution No. 2026-043 approving the Engineer's Report; 3) adopt Resolution No. 2026-044 declaring its intention to order improvements for Assessment District Nos. 75-1, 75-2, 76-1, 76-2, 83-2, and 2002-1; and 4) schedule a public hearing for Tuesday, July 21, 2026.
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FISCAL IMPACT
Sufficient funds are included in the Fiscal Year 2026-27 Public Works Department budget within the various Maintenance District Funds.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Positive City Image
• Superior Customer Service
• Responsible Long-Range Planning
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Revenue: 36172601, 36172602, 36172603, 36172604, 36172606, 36172607 |
Expenditure: 3607260, 36172601, 36172602, 36172603, 36172604, 36172606, 36172607 |
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BACKGROUND
The Landscape and Lighting Districts are special assessment districts that were established to fund the installation, maintenance, and servicing of public landscaping and lighting improvements. These funds help keep public spaces clean, green, and well-lit, contributing to the safety and appearance of the community. Over the years, pursuant to the Landscaping and Lighting Act of 1972 of the California Streets and Highways Code, the City formed six Landscape and Streetlight Maintenance Assessment Districts. This procedure authorized the City to recover costs that are incurred to provide the landscaping and street lighting maintenance services through a special benefit assessment district procedure.
Proposition 218 changed the procedural requirements for imposing, extending, or increasing landscape and lighting assessments. Due to these changes, the City Council, in 2002, adopted a policy to annex future developments into Landscape and Streetlight Maintenance District 2002-1, which has a consumer price index (CPI) escalator that allows the City to increase rates.
The CPI adjustment is determined by the United States Department of Labor, Bureau of Labor Statistics for all urban consumers in the Riverside - San Bernardino - Ontario area index from January 2025 through January 2026. This year, there is a 3.24% CPI increase for landscape and streetlight maintenance in District 2002-1.
In past years, City Council has approved a subsidy to support landscape and lighting maintenance costs within the assessment districts. As the costs associated with insurance, maintenance, water, and electricity increase, the amount of the subsidy also increases. The Engineer's Reports prepared by Webb Associates summarize the estimated maintenance costs, assessment revenues, and resulting City subsidy required to fund maintenance activities within the interior benefit areas of the assessment districts. Interior benefit areas generally consist of landscaping, streetlights, and related improvements located within a development that primarily benefit the properties within the assessment district. The proposed Fiscal Year 2026-27 assessments include a 3.24% CPI adjustment as reflected in the Engineer's Report for Assessment District 2002-1.
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Assessment District Interior Areas (Fund 361) |
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FY24-25 |
FY25-26 |
FY26-27 |
|
Assessment Revenues Collected |
$691,972.92 |
$700,519.17 |
$710,027.23 |
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City Subsidy |
$596,357.03 |
$588,881.67 |
$730,477.50 |
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Total Maintenance Costs for Interior Areas. |
$1,288,329.95 |
$1,289,400.84 |
$1,440,504.73 |
The Assessment Revenues Collected ($710,027.23) is not sufficient to cover all maintenance costs ($1,440,504.73). The City Subsidy of $730,477.50 represents the additional funds needed to cover total maintenance costs for interior areas which includes landscape maintenance, streetlight maintenance, water, electricity, and administrative expenses.
In addition to the costs funded through assessments, the City funds maintenance activities associated with the general benefit portion of the perimeter areas that is not assessed to property owners. Perimeter areas are generally located along arterial and collector streets adjacent to or surrounding residential developments and serve a broader public benefit. As assessments in many zones have reached their maximum authorized levels and cannot be increased without voter approval, the City provides a subsidy to fund maintenance costs that exceed available assessment revenues. These costs are identified separately within the Engineer's Reports and are funded by the City.
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General Benefit / Perimeter Areas (Fund 360) |
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FY24-25 |
FY25-26 |
FY26-27 |
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City-Funded General Benefit / Perimeter Areas |
$516,274.29 |
$507,513.91 |
$607,243.71 |
The City's total funding requirement consists of both the subsidy needed to support the interior assessment districts and the City's funding responsibility for general benefit of perimeter areas.
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Total City Funding Requirement |
|
|
FY24-25 |
FY25-26 |
FY26-27 |
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City Subsidy (Interior Districts) |
$596,357.03 |
$588,881.67 |
$730,477.50 |
|
City-Funded General Benefit / Perimeter Areas |
$516,274.29 |
$507,513.91 |
$607,243.71 |
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Total City Funding Requirement |
$1,112,631.32 |
$1,096,395.58 |
$1,337,721.21 |
A Proposition 218 mail ballot election would be required only if a proposed assessment exceeds the maximum assessment previously authorized for a particular zone. Certain zones identified in Exhibit 1 are currently assessed below their maximum authorized assessment and may therefore can be increased up to 5% without exceeding the approved maximum assessment. These adjustments do not require a Proposition 218 election and will continue annually until the maximum authorized assessment is reached.
Exhibit 1 identifies the Fiscal Year 2025-26 and proposed Fiscal Year 2026-27 assessments for Assessment Districts 75-1, 75-2, 76-1, 76-2, and 83-2. The proposed Fiscal Year 2026-27 assessments maintain the existing assessment levels for all zones that are currently at their maximum authorized assessment and apply increases only to those zones that remain below their approved maximum assessment.
Exhibit 2 identifies the Fiscal Year 2025-26 and proposed Fiscal Year 2026-27 assessments for Assessment District 2002-1. The proposed Fiscal Year 2026-27 assessments include the 3.24% CPI adjustment reflected in the Engineer's Report.
Administrative costs, including salaries, advertising, consultant services, and miscellaneous office expenses, were allocated proportionately among Assessment Districts 75-1, 75-2, 76-1, 76-2, 83-2, and 2002-1 and are incorporated into the assessments and maintenance costs reflected in the Engineer's Reports.
ISSUES/ANALYSIS
For the City to continue assessing fees to maintain its landscape and lighting districts under the Landscape and Lighting Act of 1972, the City Council is required to approve or approve as modified, the attached resolutions in sequence. This process documents the City’s intention to levy and collect assessments.
Although the rates remain below the maximum allowable assessment rate, a public hearing is required per Proposition 218. The hearing has been scheduled for Tuesday, July 21, 2026. Mailed notices are not required, only legal advertising and posting are mandated for this year. The Engineer’s Report provides detailed information on all costs used in determining the proposed assessments and is on file for review in the Public Works Department.
Attachments:
Resolution Filing 2026-042
Resolution Approving 2026-043
Resolution Intention 2026-044
FY26-27 CPI
FY26-27 LMD 2002-1 ER
FY26-27 LMDs 75, 76, 83-2 ER
Exhibit 1
Exhibit 2