AGENDA ITEM
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: CARLO TOMAINO
CITY MANAGER
BY: GABINO C. LUNA
PUBLIC WORKS DIRECTOR
SUBJECT:
title
PUBLIC HEARING AND ADOPTION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA, CONFIRMING THE DIAGRAM AND ASSESSMENT FOR LANDSCAPE AND LIGHTING MAINTENANCE DISTRICT NO. 1 AND LEVYING ASSESSMENTS ON ASSESSABLE LOTS AND PARCELS FOR FISCAL YEAR 2026-27
summary
Summary:
The City formed Landscape and Lighting Maintenance District No. 1 (LLMD) in 1992 to fund the maintenance of common landscaped areas within the California Crown Tract. The California Crown Tract is located south of East Hill Street, north of East 19th Street, west of Temple Avenue, and east of North Orizaba Way. Annually, the City Council must conduct proceedings to levy and collect special assessments for the LLMD.
On May 26, 2026, the City Council approved the Engineer's Report and adopted a Resolution of Intention declaring its intention to levy and collect assessments for Fiscal Year (FY) 2026-27. On June 9, 2026, the City Council adopted Resolution No. 2026-06-6937 amending the Resolution of Intention and rescheduling the public hearing to June 23, 2026, to allow sufficient time to satisfy the public notice publication requirements prescribed by the Landscaping and Lighting Act of 1972.
The proposed annual assessment for basic lots is $1,109.62, representing a three percent increase of $32.32. The proposed annual assessment for landscape easement lots is $1,490.20, representing a three percent increase of $43.40. Property owners approved the assessment methodology and annual increases through the Proposition 218 proceedings conducted on June 14, 2022.
Staff recommends the City Council conduct the public hearing, consider public testimony, confirm the assessment diagram and assessments, and adopt a resolution levying assessments for Landscape and Lighting Maintenance District No. 1 for FY 2026-27
Strategic Plan Goals:
Goal No. 1 Financial Stability: Ensure the City’s long-term financial stability and resilience.
Goal No. 4 Infrastructure: Maintain and improve the City’s physical infrastructure, water system and recreational spaces
recommendation
Recommendation:
1. Staff recommends the City Council open a public hearing, consider public testimony, confirm the diagram, approve and adopt the proposed annual assessments, and declare the City Council's order to levy and collect assessments for the Landscape and Lighting Maintenance District No. 1.
2. Adopt a Resolution, entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA, CONFIRMING THE DIAGRAM AND ASSESSMENT FOR LANDSCAPE AND LIGHTING MAINTENANCE DISTRICT NO. 1 AND LEVYING ASSESSMENTS ON ASSESSABLE LOTS AND PARCELS FOR FISCAL YEAR 2026-27.
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Fiscal Impact:
The proposed LLMD operating budget for FY 2026-27 includes expenditures totaling $119,760.19. The City funds LLMD operations through annual assessments collected from property owners within the district. The proposed FY 2026-27 assessments will generate an estimated $109,760.88 in revenue.
The difference between projected revenues and expenditures will be funded through available LLMD reserves accumulated from prior years. The proposed assessment reflects a three percent increase previously approved by property owners through the Proposition 218 proceedings conducted on June 14, 2022. The assessment structure continues to support long-term financial stability of the district and provides funding for future landscape replacement, irrigation system improvements, drainage enhancements, and other maintenance-related capital needs.
|
Proposed FY 2026-27 Assessment |
|
Type of Lot |
Existing FY 2025-26 Assessment |
Proposed FY 2026-27 Assessment |
Total Increase (3%) |
|
Basic Lot |
$1,077.30 |
$1,109.62 |
$32.32 |
|
Lots with Landscape Easement |
$1,446.80 |
$1,490.20 |
$43.40 |
|
FY 2026-27 Revenue and Expense Forecast |
|
FY 2025-26 Projected End Balance |
$99,133.08 |
|
FY 2026-27 Proposed Revenues |
$109,760.88 |
|
FY 2026-27 Proposed Expenses |
$119,760.19 |
|
FY 2026-27 Projected End Balance |
$89,133.77 |
Background:
The City of Signal Hill formed the Landscape and Lighting Maintenance District No. 1 (LLMD) in 1992 to provide a source of funding for the installation, operation, repair, replacement and maintenance of landscape areas that benefit properties within the California Crown Tract. In addition, the founding documents established an Architectural Control Committee (ACC), consisting of LLMD property owners, to assist in identifying maintenance priorities and long-term needs.
The LLMD assessment area is shown in Exhibit A of the 2026 Engineer’s Report. The district is comprised of Tract 48512 and includes 95 individual lots as follows:
• 64 basic residential lots
• 26 residential lots with landscape easements
• 5 oil lots
Annually, the City Council must conduct proceedings to levy and collect special assessments for the LLMD. Proposition 218 amended the California Constitution by adding Article XIII D, which limits the ability of local agencies to impose or increase assessments without property owner approval. As a result, assessments may only be levied for special benefits received by assessed properties and must be supported by a detailed Engineer’s Report prepared by a California Registered Professional Engineer. The Engineer’s Report provides an analysis of the improvements, maintenance activities, operational costs, and funding requirements associated with the district. The report demonstrates that assessed properties receive a special benefit above and beyond benefits provided to the general public.
In 2021 and 2022, the ACC and City staff conducted multiple meetings to review district landscaping conditions, utility costs, maintenance expectations, and future funding needs. Based on these discussions, the ACC recommended establishing additional reserve funding to address aging infrastructure and future capital maintenance needs. Following community outreach and public meetings, the City conducted Proposition 218 proceedings in June 2022 and received majority support from property owners for the proposed assessment methodology and future assessment increases.
The 2022 Engineer’s Report included the following key provisions:
• Reclassification of certain parcels to more accurately allocate costs based on the special benefits received by each property.
• Removal of Signal Hill Petroleum oil lots from the assessment roll because those properties do not receive special benefit from district landscaping improvements and maintain their own landscaped areas pursuant to a Property Maintenance Agreement with the City.
• Approval of the following assessment schedule:
o FY 2022-23: $19.62 monthly increase
o FY 2023-24: 10% increase
o FY 2024-25: 10% increase
o FY 2025-26: 4% increase
o FY 2026-27: 3% increase
Property owners submitted more weighted assessment ballots in favor of the proposed assessment than in opposition. As a result, no majority protest existed, and the City Council approved the assessment methodology and future annual increases.
Analysis:
On May 26, 2026, the City Council approved the FY 2026-27 Engineer's Report and adopted a Resolution of Intention declaring its intention to levy and collect assessments for Landscape and Lighting Maintenance District No. 1 for Fiscal Year 2026-27. Subsequently, on June 9, 2026, the City Council adopted Resolution No. 2026-06-6937 amending the Resolution of Intention and revising the public hearing date to June 23, 2026. The required notice of public hearing was published in accordance with the Landscaping and Lighting Act of 1972.
Based on the proposed FY 2026-27 operating budget and planned special projects, the total estimated annual budget for the LLMD is $119,760.19, consisting of the following:
|
Expense Description |
FY 2026-27 Proposed Amount |
|
Salaries and Benefits |
$26,705.19 |
|
Contract Services |
$6,000.00 |
|
Utility Services (Water and Electricity) |
$15,055.00 |
|
Lawn Care Services |
$37,000.00 |
|
Planned Special Projects |
$35,000.00 |
|
Total |
$119,760.19 |
Based on the proposed budget, the FY 2026-27 Engineer’s Report establishes an annual assessment of $1,109.62 for basic residential lots and $1,490.20 for landscape easement lots. These assessment amounts reflect the three percent increase authorized through the 2022 Proposition 218 proceedings.
City staff meets regularly with the ACC to review maintenance activities, discuss district priorities, and identify future improvements. Planned FY 2026-27 special projects include enhanced irrigation and landscape improvements throughout the district.
|
FY 2026-27 Special Projects |
|
Project |
Proposed Budget |
|
Enhanced irrigation and landscape improvements |
$35,000 |
The attached resolution confirms the assessment diagram and annual assessments contained within the FY 2026-27 Engineer’s Report and authorizes the levy and collection of assessments for the upcoming fiscal year. If approved, staff will submit the assessment roll to the Los Angeles County Auditor-Controller for placement on the FY 2026-27 property tax roll.
Reviewed for Fiscal Impact:
_________________________
Siamlu Cox
Attachments:
A. 2026 Engineers Report
B. Resolution Confirming the Diagram and Assessment for Landscape and Lighting Maintenance District No. 1 and Levying Assessments for Fiscal Year 2026-27