MEETING DATE:
July 28, 2026
SUBJECT:
Title
RESOLUTION NO. 2026-9650 - CONFIRMING THE DIAGRAM AND ASSESSMENT AND PROVIDING FOR THE LEVY OF THE ANNUAL ASSESSMENT OF THE LANDSCAPING AND LIGHTING DISTRICT NO. 1 FOR FISCAL YEAR 2026-27
Body
Recommendation
Recommendation
ADOPT a resolution approving and confirming the diagram and assessment, and levying the assessment, for Landscape and Lighting District No. 1 for fiscal year 2026-2027.
Body
Board or Commission Action
Not applicable
Relevant Council Strategic Theme
Quality of Life
Good Governance
Relevant Department Goal
Not applicable
Executive Summary
This is a public hearing to receive public input on the proposed levy of assessments for Fiscal Year 2026-2027 for the City of San Marcos Landscaping and Lighting District No. 1 (“District”). The Landscaping and Lighting Assessment Act of 1972 requires that districts formed under its provisions be renewed each fiscal year in which an assessment is to be levied. City Council adopted the resolution to approve the preliminary Engineer’s Report on June 23, 2026.
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). At the direction of the City Council, the City of San Marcos Landscaping and Lighting District No. 1 was formed June 9, 1981, by Resolution No. 81-1592. 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. 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 direct benefits received by the assessed parcels are not unique or enhanced because they are provided through the District. The assessment is based on the direct benefits attributable to the lighting and landscaping improvements, rather than on whether the assessed parcels receive benefits that are exclusive or unavailable to the general public.
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. No new parcels have been annexed into the District for Fiscal Year 2026-2027.
The Landscaping and Lighting Act requires that a resolution be adopted for the renewal of the District for the upcoming year. The Engineer's Report, which discusses the scope of services and apportionment of the levy, is attached.
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 regular public landscaping and lighting 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. It is anticipated that revenues for the District will decline as properties currently in the District are redeveloped and annexed to the City’s Community Facility District 98-02 (Lighting, Landscaping, Open Space and Preserve Maintenance) which bring revenues with an annual indexed inflationary increase.
Attachment(s)
Resolution
Attachment A: Engineer’s Report
Prepared/Submitted by: Jeffrey Jorgenson, Accounting & Treasury Manager
Reviewed by: Donna Apar, Finance Director
Approved by: Tim Selke, Assistant City Manager