TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
title
title
Landscape and Streetlight Maintenance District Assessment for Fiscal Year 2025-26.
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RECOMMENDATION
recommendation
1) Conduct the Public Hearing; 2) adopt Resolution No. 2025-042; and 3) direct the City Clerk to file a certified copy of the diagram and assessments with the County Auditor/Controller Recorder.
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FISCAL IMPACT
There are sufficient funds in the FY 2025-26 Public Works Department budget within the various Maintenance District Programs.
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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Transfer In: |
Transfer Out: |
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.
At the City Council meeting on June 17, 2025, three (3) resolutions were adopted that approved the Engineer’s Report; declared the City’s intention to order improvements; and scheduled a Public Hearing for July 15, 2025.
In past years, the City Council has approved a subsidy to the districts for landscape and lighting maintenance costs. As the costs associated with insurance, maintenance, water, and electricity change, the subsidy has also changed. Staff has reviewed the Fiscal Year 2023-24, 2024-25, and the new Fiscal Year 2025-26 information for expense, revenue, and subsidies from the engineer’s reports provided by Webb Associates. The information is provided as follows:
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FY23-24 |
FY24-25 |
FY25-26 |
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Total Maintenance Cost |
$1,195,873.80 |
$1,288,329.96 |
$1,289,400.84 |
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Total Revenues Collected |
$673,432.71 |
$691,972.92 |
$700,519.17 |
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City's Subsidy* |
$522,441.10 |
$596,357.03 |
$588,881.67 |
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Required City 50% Contribution (General Benefit/Perimeter Areas) |
$507,189.88 |
$516,274.29 |
$507,513.91 |
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Total City Cost |
$1,029,630.98 |
$1,112,631.32 |
$1,096,395.58 |
*The City Subsidy Contribution funds streetlight, tree, landscape maintenance, water, and electricity costs within the Maintenance Districts. It should be noted that the costs are off by one cent due to rounding issues.
A Proposition 218 mail ballot election, with majority support, would be required for any rate increase to the property owners in the districts above their current maximum assessment. Certain zones in Exhibit 1 had a 5% or less increase to their assessment for Fiscal Year 2025-26 since they were not at their maximum assessment. This increase does not trigger a proposition election and will adjust each year until it reaches the maximum rate.
During Fiscal Year 2025-26, staff will continue to monitor expenditures and revenues by Districts and Zones to better track the subsidy.
ISSUES/ANALYSIS
Exhibit 1 enumerates the actual Fiscal Year 2024-25 assessments for the 75-1, 75-2, 76-1, 76-2 and 83-2 assessment districts and staff’s recommended assessments for Fiscal Year 2025-26, holding the per-zone assessments not-to-exceed their Fiscal Year 2024-25 amounts (except in those areas that the rate was below the maximum assessment).
Exhibit 2 enumerates the actual Fiscal Year 2024-25 assessments for the 2002-1 assessment district and staff’s recommended assessments for Fiscal Year 2025-26 which includes a 2.94% CPI rate increase.
The total maintenance cost for Fiscal Year 2025-26 is estimated to be $1,070.88 more than the previous fiscal year. However, the total revenue collected for Fiscal Year 2025-26 is estimated to be $8,546.25 more than the previous fiscal year. This is due to a rate increase for some districts that are not at their maximum assessment rate and District 2002-1 which has an escalator receiving a CPI increase. As a result, the City’s subsidy also increases to offset the total maintenance costs, and the total revenues collected.
It should be noted that the City contributes 50% of the perimeter cost for the common landscape and lighting areas. This cost is the City’s responsibility regardless of the revenue received.
A Public Hearing is required to levy the annual assessments. Pursuant to Section 22629 of the California Streets and Highways Code, all interested people shall be afforded the opportunity to hear and be heard, and upon the conclusion of the Public Hearing, the Council may order changes in any of the matters provided in the report.
Attachments: Resolution 2025-042
FY25-26 CPI
FY25-26 LMD 2002-1 ER
FY25-26 LMDs 75, 76, 83-2 ER
FY25-26 LMDs 75, 76, 83-2 Assessment Diagram
FY25-26 LMD 2002-1 Assessment Diagram
Exhibit 1 - Proposed Rates for LSMD's 75-1, 75-2, 76-1, 76-2, 83-2
Exhibit 2 - Proposed Rates for LSMD 2002-1