AGENDA ITEM
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: CARLO TOMAINO
CITY MANAGER
BY: GABINO LUNA
PUBLIC WORKS DIRECTOR
SUBJECT:
title
RESOLUTIONS APPROVING THE ENGINEER’S REPORT AND DECLARING INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR LANDSCAPE AND LIGHTING MAINTENANCE DISTRICT NO.1 FOR FISCAL YEAR 2026-27
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Summary:
The City formed the Landscape and Lighting Maintenance District No. 1 (LLMD) in 1992 to fund the maintenance costs of common landscaped areas within the California Crown Tract. The California Crown Tract lies 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 initiate proceedings to renew the levy and collect special assessments for the LLMD. The proposed resolutions declare the City Council's intention to levy and collect the proposed assessments, approve the Engineer's Report, and set the Public Hearing for June 9, 2026.
The total proposed assessment for all California Crown Tract lots for Fiscal Year (FY) 2026-27 is $109,760.88. The proposed annual assessment for basic lots is $1,109.62, representing a three percent increase of $32.32. The proposed yearly assessment for landscape easement lots is $1,490.20, representing a three percent increase of $43.40. Property owners approved the proposed assessments within the LLMD through the last Proposition 218 (Proposition 218) hearing that occurred on June 14, 2022. Staff is requesting the City Council set a public hearing for June 9, 2026, adopt resolutions for the preparation of the Engineer’s Report, and declare intent to levy and collect assessments for Fiscal Year 2026-27 for the LLMD.
Strategic Plan Goal(s):
Goal No. 1 Financial Stability: Ensure the City’s long-term financial stability and resilience.
recommendation
Recommendation:
1. Set the Public Hearing for June 9, 2026.
2. Authorize the use of fund balance or reserves from previous years from LLMD accounts for special projects, as approved by the Public Works Director, in accordance with the City’s Purchasing Policy.
3. Adopt a Resolution, entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA, INITIATING PROCEEDINGS TO LEVY AND COLLECT ASSESSMENTS FOR FISCAL YEAR 2026-27 WITHIN AN EXISTING LANDSCAPE AND LIGHTING DISTRICT PURSUANT TO THE LANDSCAPING AND LIGHTING MAINTENANCE ACT OF 1972, APPOINTING THE ENGINEER OF WORK, AND ORDERING THE PREPARATION OF THE ENGINEER’S REPORT
4. Adopt a Resolution, entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA, DECLARING ITS INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR LANDSCAPE AND LIGHTING MAINTENANCE DISTRICT NO. 1 FOR FISCAL YEAR 2026-27 AND APPROVING THE ENGINEER’S REPORT
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Fiscal Impact:
The proposed LLMD operating budget for FY 2026-27 includes proposed expenditures totaling $119,760.19. The City funds the LLMD operating budget using assessments collected from property owners within the LLMD. The total proposed assessment will show projected revenues for FY 2026-27 totaling $109,760.88. The proposed assessment reflects a 3% increase approved by property owners within the LLMD through the last Proposition 218 hearing on June 14, 2022. The assessment is intended to create a reserve to cover future costs for plant replacement, drainage installation, sprinkler replacement, and additional clean-up activities.
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 Landscaping |
$1,446.80 |
$1,490.20 |
$43.40 |
FY 2026-27 Revenue and Expense Forecast
|
FY 25-26 Projected End Balance |
$ 99,133.08 |
|
FY 26-27 Projected Revenues |
$109,760.88 |
|
FY 26-27 Proposed Expenses |
$119,760.19 |
|
FY 26-27 Projected End Balance |
$89,133.77 |
Background:
The City formed the LLMD in 1992 to provide a source of funds for installing, repairing, and operating specific landscaped areas that benefit all properties within the California Crown Tract. In addition, the founding documents allowed for the creation of an Architectural Control Committee (ACC), consisting of LLMD property owners, to prioritize the goals of the LLMD. The LLMD assessment area, as shown on Exhibit A of the 2026 Engineer's Report (Attachment A). The LLMD is bound by Tract 48512 and contains 95 individual lots as follows:
• 64 basic residential lots
• 26 residential lots with landscape easements and
• 5 oil lots.
Annually, the City Council must initiate proceedings to renew the levy and collect special assessments for the LLMD. The City Council may only increase assessments in accordance with Proposition 218, which amended the California Constitution by adding Article XIII D, limiting the ability of local government to generate revenue using special assessments, local taxes, fees, and charges without taxpayer or property owner approval.
In addition, the City may levy LLMD assessments only for special benefits and require all assessments to be supported by a detailed Engineer's Report prepared by a Registered Professional Engineer certified by the State of California. The increase in property desirability and value due to the maintenance of adjacent or surrounding trees, landscape, trail, hardscape, and appurtenant facilities is considered or defined as a special benefit. The Engineer's Report provides a detailed analysis of the improvements, operations, and maintenance expenses and their respective required funding to demonstrate that the assessed properties receive a special benefit over and above the benefits conferred on the general public.
In March 2021, the ACC hosted multiple site meetings with City staff to discuss the condition of the existing landscape, utility costs, and long-term expectations regarding district maintenance. Based on the desired level of maintenance, the ACC proposed collecting approximately $105,400.00 in reserve revenue over a five-year term. City staff held community meetings in March and April 2022 to inform residents about the upcoming Proposition 218 proceeding and the proposed FY 2022-23 assessment increase. At that time, a majority of residents voiced support for the need to maintain the aging infrastructure and landscape, as well as the increased assessment. Therefore, in June 2022, the City conducted levy assessment using a new methodology outlined in the 2022 Engineer’s Report (Attachment B). The 2022 Engineer's Report included the following key points:
• The report reclassified Lots 4, 5, 6, 7, 8, 22, 23, 24, 25, 26, and 27 from Basic to Landscape Easement lots to properly allocate those receiving special benefits. The report also reclassified Lots 62 and 53 from Landscape Easement to Basic lots due to the absence of special benefits received. As a result, the 2022 Engineer's Report recommended reducing the new total number of Basic lots to 26 and increasing the Landscape Easement lots to 64.
• The assessment excluded Signal Hill Petroleum (SHP) oil lots because SHP does not receive any special benefit from enhanced landscape care within the surrounding area. On April 26, 2022, SHP entered into a Property Maintenance Agreement with the City to maintain its own landscape to current or better conditions (Attachment C).
• The 2022 Report identified a specific assessment roll for each parcel. The report reflects the planned increase to the annual property tax bill as follows:
o FY 2022-23: $19.62 per month increase
o FY 2023-24: 10% increase
o FY 2025-26: 10% increase
o FY 2026-27: 4% increase
o FY 2026-27: 3% increase
As part of the Proposition 218 proceedings, the City mailed 90 assessment ballots to property owners within the LLMD; the City received 43 of those ballots before the close of the public hearing. Of these, 26 submitted assessment ballots supported the proposed assessment levy, and 17 assessment ballots were in opposition. Property owners submitted more assessment ballots in support of the proposed assessments than in opposition. As a result, no majority protest occurred, and the City Council adopted the resolutions declaring the ballot results and approving the increased assessments.
Analysis:
Based on the proposed FY 2026-27 budget plus planned special projects, the FY 2026-27 estimated operating budget for the LLMD is $119,760.19. The budgetary breakdown is provided on the table below:
|
Expense Description |
FY 2026-27 Proposed Amount |
|
Salaries & Benefits |
$26,705.19 |
|
Contract Services |
$6,000.00 |
|
Utility Services |
$15,055.00 |
|
Lawn Care Services |
$37,000.00 |
|
Planned Special Projects |
$35,000.00 |
|
Total |
$119,760.19 |
Based on the proposed budget for FY 2026-27, the Engineer’s Report identifies an annual assessment for basic lots as $1,109.62 and the proposed yearly assessment for the landscape easement lots as $1,490.20, both representing a three percent increase of $75.72.
Staff meets on a monthly basis with ACC to provide an update on the ongoing maintenance and discuss potential maintenance items that require improvement; projects slated for FY 2026-27 include the following:
|
FY 2026-27 Special Projects |
|
Enhanced irrigation and landscape improvements |
|
Total Proposed Budget |
$35,000 |
The attached resolutions declare the City Council's intent to levy and collect assessments for landscaping and maintenance activities within LLMD and approve the FY 2026-27 Engineer's Report (Attachments D and E). If approved by the City Council, staff would schedule a Public Hearing for the June 9, 2026, City Council meeting, and publish a notice of the public hearing pursuant to Section 22626(a) of the California Streets and Highways Code.
Reviewed for Fiscal Impact:
_________________________
Siamlu Cox
Attachments:
A. 2026 Engineer’s Report
B. 2022 Engineer’s Report
C. Signal Hill Petroleum’s Maintenance Agreement
D. Resolution Ordering the Preparation of an Engineer’s Report
E. Resolution Declaring Intention to Levy and Collect Assessments