It is recommended that the City Council adopt the following resolution:

The Citywide Lighting and Maintenance District ("Citywide District") was established in 1976. As the name implies, this District encompasses the entire City. Prior to Fiscal Year 1997-1998, the Citywide District funded a variety of public improvements and services which included: street tree maintenance, median maintenance, park maintenance, municipal pool maintenance, area lighting maintenance, traffic signal maintenance, traffic engineering, and street lighting engineering. Since the passage of Proposition 218 in November 1996 and the subsequent property owner approval in July 1997, the Citywide District assessment currently funds only those services that have been designated as a "Special Benefit", which is the maintenance of most of the streetlights and street trees within the City.

The Citywide District funds the operation and maintenance of assessable (special benefit) street trees and street lighting. These funds are used for the operations and maintenance of streetlights, trimming of street trees, and removal and replacement of diseased street trees (due to disease, emergency uprooting or downed trees/limbs, et cetera).

The Landscape and Lighting Act of 1972 (California Streets and Highways Code section 22500 et seq.) (the "Act") specifies the procedures for annual renewals of maintenance districts. The initial steps in the process include:
1.    Adoption of a resolution ordering the preparation of an Engineer's Report.
2.    Approval of the Engineer’s Report.
3.    Adoption of a Resolution of Intention concerning the levy and collection of assessments and setting a public hearing. 

At the regular meeting on July 7, 2026, the City Council (1) adopted Resolution No. 2026-68, ordering Webb Municipal Finance, LLC, as assessment engineer, to prepare and file an Engineer's Report, (2) approved the Preliminary Engineer's Report; and (3) adopted Resolution No. 2026-72, declaring its intention to levy and collect assessments for FY 2026-27 and setting July 21, 2026 as the date for the public hearing on the proposed assessments.

The next step is conducting the public hearing. Following the public hearing, the City Council may adopt a resolution confirming the diagram and assessments for the Citywide District either as proposed or as revised by the City Council. The adoption of the resolution levies the assessments for the upcoming Fiscal Year.

The approval of the Preliminary Engineer's Report by the City Council does not commit the City Council to adopt the proposed assessments for the Citywide District. At the public hearing, the City Council is required to consider all comments for and against the proposed assessments. During or after the public hearing, the City Council may order maintaining or reducing the proposed rates and/or revising expenditures that are funded by the Citywide District. The City Council's action only becomes final when the assessments are confirmed by resolution upon completion of the public hearing.

The voter-approved rates for the Citywide District included a provision for not more than a 2% annual increase based on the Consumer Price Index (CPI). The CPI increase for the one-year period from March 2025 to March 2026 for the Los Angeles-Long Beach-Anaheim areas was 3%. Therefore, current rates may increase a maximum of 2.00%. This increase will permit the Citywide District to provide the standard level of service in the Citywide District.

The assessment rates in the Citywide District are based on the Equivalent Dwelling Unit (EDU) method. In this methodology, a single-family residential parcel will equal one EDU and pay an assessment of $62.42 per year, an increase of $1.22 per year from Fiscal Year 2025-26.  

During the 2023-2024 Fiscal Year, the City entered into a new agreement for median and landscaping services that addresses increased scope of landscape and median maintenance needs. This scope of work will continue and be maintained throughout FY 2026-2027. 

As costs have risen, maintenance has suffered. A full study is needed to ascertain what a proper level of maintenance would cost and explore how to properly set the assessment rate. Such a study will take several months and, if rates are to be increased, would require a vote by the affected property owners. Pending completion of a further analysis, this report recommends that assessment rates be increased by the property owner-approved CPI increase of 2% for Fiscal Year 2026-27.

The City Council has the following options:

1. Increase current assessment rates by 2.00% based on the current escalation formula; or
2. Maintain the current assessment rates. Maintaining the rates at their current levels (0% increase) would deplete the reserves at a faster pace and require General Fund to subsidize the district in future years; or
3. Provide alternative direction.
    

The levy and collection of the assessments is statutorily exempt from the California Environmental Quality Act (“CEQA”) pursuant to Section 15273 of the CEQA Guidelines, in that the proceeds of the assessments are to be used for operating expenses and supplies and equipment. The levy and collection of the assessments is also exempt from CEQA pursuant to Section 15061(b)(3) (Common Sense Exemption) of the CEQA Guidelines, in that it can be seen with certainty that there is no possibility that the levy and collection of the assessments to fund maintenance and operations costs for the District will have a significant impact on the environment