DATE: June 4, 2025
TO: Honorable Mayor and City Councilmembers
FROM: Public Works Department
TITLE: RESOLUTIONS CONFIRMING THE DIAGRAMS AND ASSESSMENTS FOR FISCAL YEAR 2025-26 FOR ELEVEN OF THE CITY’S LANDSCAPE MAINTENANCE DISTRICTS
RECOMMENDATION
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Staff recommends that the City Council adopt resolutions confirming the diagram and assessments for each of the following Landscape Maintenance Districts for FY 2025-26 and order the assessments to be levied for FY 2025-26:
Del Oro Hills, Assessment District No. 1-1987
Douglas Park, Assessment District No. 5-1981
Guajome Ridge, Assessment District No. 1-1989
Mar Lado Highlands, Assessment District No. 1-1988
Peacock Hills, Assessment District No. 1-1977
Mission Meadows (Area A) Assessment District No. 2-1979
Mission Meadows (Area B), Assessment District No. 2-1979
Rancho Hermosa, Assessment District No. 3-1982
Santa Fe Mesa, Assessment District No. 2-1987
Sunburst Homes, Assessment District No. 1-1980
Sunset Hills, Assessment District No. 2-1982
Vista Del Rio, Assessment District No. 1-2001
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BACKGROUND AND ANALYSIS
The City’s Landscape Maintenance Districts (“LMDs”) were formed pursuant to the authority granted by the Landscaping and Lighting Act of 1972 of the California Streets and Highway Code. This legislation provided the means to finance the maintenance of landscape improvements within the boundaries of each district.
The assessments will remain the same in FY 2025-26 as they were in FY 2024-25 for all the districts listed above except the Douglas Park, Guajome Ridge, Rancho Hermosa and Vista Del Rio districts, which include Consumer Price Index (“CPI”) adjustments. A comparative summary of the existing and proposed assessments for each district is shown in the fiscal impact portion of this report. In an effort to address the issue of chronic underfunding of several LMDs, staff has been meeting with the Homeowner’s Associations (HOAs) of multiple LMDs in an effort to determine if these HOAs would be willing to assume maintenance responsibilities. To date, none of these HOAs have been supportive to take on the responsibilities of the LMD nor have any of the LMDs been supportive of a rate increase.
The City Council is required to conduct a public hearing regarding the proposed FY 2025-26 assessments to be levied within each of the districts. On April 23, 2025, the City Council adopted resolutions setting the public hearing date for the City’s eleven LMDs. The public hearing provides all interested persons an opportunity to be heard, either in writing or orally at the public hearing, regarding the renewal and proposed assessments. After consideration of the evidence submitted, the City Council is requested to adopt resolutions for each of the districts confirming the FY 2025-26 diagram and assessments.
The amount of the assessment levied against a parcel is based on benefit unit costs. Benefit units are assigned to each parcel reflecting both land use designation and proximity to district landscaping. Each district’s total costs, divided by the total benefit units in the district, determines the assessment per benefit unit. A parcel’s assessment is determined by multiplying the assigned number of benefit units by the assessment per benefit unit. Single-family homes are assessed one benefit unit. An additional 0.1 benefit unit is assessed if the single-family home is adjacent to district landscaping. Condominiums and apartments are assigned 0.8 benefit units per dwelling.
An itemized outline of costs and the calculation of the average annual assessment per benefit unit are summarized in the attached Engineer’s Reports, approved on April 23, 2025, and the accompanying exhibits. The report identifies the proposed assessment for each lot and parcel of real property within the district. Exhibit C of the Engineer’s Reports contains an assessment roll showing the proposed amount to be assessed against each parcel within each district. The proposed assessments within the Engineer’s reports will be used to pay the operation, maintenance, and material costs associated with each district for FY 2025-26. Exhibit C is available for review in the City Clerk’s office. Since there will not be any changes to the Engineer’s Reports approved on April 23, 2025, the City Council is not required to approve a modified Engineer’s Report. The proposed assessments within the Engineer’s Reports, approved April 23, 2025, will be used to pay the operation, maintenance and material costs associated with each district for FY 2025-26.
FISCAL IMPACT
All costs are included in each respective district’s budget. Revenues to cover the estimated expenditures are levied and collected as a special assessment against the properties within each district. The budgets for each of the districts are detailed on Exhibit B of the Engineer’s Reports. The assessments will remain the same in FY 2025-26 as they were in FY 2024-25 with the exception of the districts that have an annual CPI increase. A comparative summary of the existing and proposed assessments for each district is shown below:
|
District |
Current Annual / Monthly |
Proposed Annual / Monthly |
CPI Increase |
|
Del Oro Hills |
$444.80/$37.06 |
No Change |
|
|
Douglas Park |
$116.38/$9.70 |
$118.71/$9.89 |
2.0% |
|
Douglas Park (Zone A) |
$51.25/$4.27 |
$53.20/$4.43 |
3.8% |
|
Guajome Ridge |
$304.98/$25.42 |
$314.13/$26.18 |
3.0% |
|
Mar Lado Highlands |
$495.62/$41.30 |
No Change |
|
|
Mission Meadows- (Area A) |
$17.00/$1.41 |
No Change |
|
|
Mission Meadows- (Area B) |
$33.66/$2.80 |
No Change |
|
|
Peacock Hills |
$17.44/$1.45 |
No Change |
|
|
Rancho Hermosa |
$30.27/$2.52 |
$31.42/$2.62 |
3.8% |
|
Santa Fe Mesa |
$162.78/$13.56 |
No Change |
|
|
Sunburst Homes |
$38.36/$3.19 |
No Change |
|
|
Sunset Hills |
$52.02/$4.33 |
No Change |
|
|
Vista Del Rio |
$118.74/$9.90 |
$123.25/$10.27 |
3.8% |
An annual increase to the base assessment rate by the CPI for all Urban Consumers for the San Diego Area was approved by a majority of the property owners within the Douglas Park, Guajome Ridge, Rancho Hermosa and Vista Del Rio districts with City Council approval. The Engineer’s Reports for each of these districts reflects the annual CPI increase. The remaining districts do not have an annual CPI increase built into them.
COMMISSION OR COMMITTEE REPORT
Does not apply.
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed by the City Attorney and approved as to form.
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Prepared by: Vicki Gutierrez, Real Estate Manager
Reviewed by: Hamid Bahadori, Public Works Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. Resolutions with Engineers Reports (Including Exhibits A, B & D)
3. Exhibit C - (On File in with the City Clerk)