MEETING DATE:
JUNE 23, 2026
SUBJECT:
Title
RESOLUTION NOS. 2026-9625 & 2026-9626 - APPROVING THE PRELIMINARY ENGINEER’S REPORT FOR ANNUAL LEVY OF ASSESSMENT FOR FISCAL YEAR 2026-2027 FOR LANDSCAPING AND LIGHTING DISTRICT NO. 1, AND DECLARING ITS INTENTION TO PROVIDE FOR AN ANNUAL LEVY AND COLLECTION OF ASSESSMENTS FOR MAINTENANCE IN LANDSCAPING AND LIGHTING DISTRICT NO. 1, AND SETTING A TIME AND PLACE FOR A PUBLIC HEARING THEREON
Body
Recommendation
Recommendation
ADOPT resolutions approving the preliminary engineer’s report and declaring the City of San Marcos’ intention to levy and collect assessments in Landscaping and Lighting District No. 1 for the fiscal year 2026-2027 and establishing a subsequent public hearing on July 28, 2026 at the regular 6:00 p.m. Council meeting
Body
Board or Commission Action
Not applicable
Relevant Council Strategic Theme
Quality of Life
Good Governance
Relevant Department Goal
Not applicable
Executive Summary
The Landscaping and Lighting Act of 1972 (“Act”) requires that an engineer’s report be prepared for the renewal of the assessments for Landscaping and Lighting District No. 1 (“District”) for the fiscal year 2026-2027. The engineer’s report was ordered on May 26, 2026 by Council Resolution 2026-9594.
The City of San Marcos has completed the preliminary engineer’s report for the District to levy the fiscal year 2026-2027 assessments on properties within the District. These proceedings are intended to provide City Council with the ability to indicate their intent to levy assessments on the District and set the public hearing date.
Discussion
Over the course of the City’s development, an increasing maintenance burden occurred as a result of the construction of additional facilities such as roadway lighting and landscaping. Prior to the use of later-developed, more flexible sources of funding for maintenance such as Community Facilities Districts (CFDs), the City used what was then available, which were Lighting and Landscaping Maintenance Districts (LLMDs). These LLMDs allowed for the City to charge new development through their property tax for that increased maintenance burden, but did not include indexed increases. As discussed more fully below, when new development within an area covered by an LLMD occurs, properties are de-annexed from LLMDs and annexed to applicable CFDs, which do provide for indexed increases.
The District is one such early LLMD, formed with the purpose of providing yearly revenue from each subdivision or development completed between June, 1981 and July, 1998, to pay its fair share of maintenance costs. These costs include maintenance for landscaping within City right of way, landscaping within development open space areas, and street lights within the City. The revenue also contributes to the development’s fair share for the energy cost of the street lights within the City. In 1996, the approval of Proposition 218 froze the assessment levels of the District, resulting in a limitation on the City’s ability to recover full maintenance costs originally contemplated. The annual process of approving the Engineer’s Report and authorizing the levy provides critical revenue that would otherwise be borne by the General Fund.
The Act requires the implementation of certain proceedings for any fiscal year in which an LLMD assessment is to be levied and collected within an existing assessment district formed under its provisions. As part of the proceedings set forth, a report must be prepared describing the assessments that will be levied to pay for costs of improvements. The content of the report is dictated by the California Streets and Highway Code (SHC) Section 22567. Since the formation of the District, the necessary proceedings have been conducted with respect to levies of annual assessments on properties within the district. The preliminary engineer's report and required resolutions are attached.
The proposed assessments for both landscaping and lighting represent 5,935 parcels previously existing in the district. Because the City adopted an assessment formula in 1994, State law allows the City to notify by mail only those properties which will have a new assessment. There have been no new parcels added to the District during fiscal year 2025-2026; therefore the City is not required to perform any notification for the fiscal year 2026-2027.
In 1998, proceedings were initiated to form Community Facilities District 98-02: Lighting, Landscaping, Open Space and Preserve Maintenance (CFD 98-02). Services provided by CFD 98-02 include those similar services provided by the District. As properties redevelop in the City they are required to annex to the City’s Community Facilities Districts including CFD 98-02. Any existing developed parcel that is currently in the District is then removed from the District and annexed into CFD 98-02. This process insures that no property pays for services twice.
The cost for landscaping, median, parkways, slope and lighting maintenance costs are detailed within the Engineer’s Report and are reflected for the proposed fiscal year 2026-2027 assessment. There is no increase in the proposed assessment amounts.
Environmental Review
Not applicable
Fiscal Impact
The LLMD assessment has not increased since the passage of Proposition 218 in 1996 and is estimated to produce revenue of $530,000 for fiscal year 2026-27. These revenues contribute toward public landscaping and lighting services but are not sufficient to cover all expected and eligible expenses. An estimated $1,160,000 from the General Fund (100) will be needed to cover the total cost of such services. The renewal of district assessments will allow for the continued levy on annexed properties within the District to contribute toward the cost of such services.
Attachment(s)
Resolution 2026-9625
Resolution 2026-9626
Preliminary Engineer’s Report
Prepared/Submitted by: Jeffrey Jorgenson, Accounting and Treasury Manager
Reviewed by: Donna Apar, Finance Director
Approved by: Michelle Bender, City Manager