TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, DIRECTOR OF PUBLIC WORKS
SUBJECT
title
Adopt Landscape and Lighting Maintenance District (LLMD) Assessment for Fiscal Year 2026-27.
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RECOMMENDATION
recommendation
1) Conduct a Public Hearing; 2) adopt Resolution No. 2026-051; 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
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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Transfer In: |
Transfer Out: |
BACKGROUND
The Landscape and Lighting Maintenance Districts (LLMD) 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 Lighting 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 July 7, 2026, 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 21, 2026.
In past years, the 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 City’s subsidy amount 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) |
|
|
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 include 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 are 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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City-Funded General Benefit / Perimeter Areas (Fund 360) |
|
|
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 |
|
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 |
|
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 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.
During Fiscal Year 2026-27, staff will continue to monitor expenditures and revenues by District and Zone to better track maintenance costs, assessment revenues, and the resulting City subsidy requirements.
ISSUES/ANALYSIS
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.
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 2026-051
FY26-27 CPI
FY26-27 LMD 2002-1 ER
FY26-27 LMDs 75, 76, 83-2 ER
FY26-27 LMD 2002-1 Assessment Diagram
FY26-27 LMDs 75, 76, 83-2 Assessment Diagram
Exhibit 1 - Proposed Rates for LMD's 75-1, 75-2, 76-1, 76-2, 83-2
Exhibit 2 - Proposed Rates for LMD 2002-1