TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Libby Bretthauer, Acting Finance Director
Julie Bondarchuk, Financial Controller
SUBJECT:Title
Conduct Public Hearing and Consider a Resolution Providing for the Annual Levy and Collection of Street Lighting and Landscaping District Maintenance Assessments for Fiscal Year 2025-2026 (Budgeted) (Acting Finance Director Bretthauer).
(Estimated Time: 15 Mins.)
A) CONDUCT PUBLIC HEARING
B) ADOPT RESOLUTION NO. 25-0083 PROVIDING FOR ANNUAL LEVY AND COLLECTION OF FISCAL YEAR 2025-2026 MAINTENANCE ASSESSMENTS
Body
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RECOMMENDATION:
Staff recommends that after conducting a public hearing, the City Council adopt Resolution No. 25-0083 providing for the annual levy and collection of Street Lighting and Landscaping District maintenance assessments for Fiscal Year (FY) 2025-2026.
FISCAL IMPLICATIONS:
The assessment rates remain unchanged from FY 2024-2025. The total assessments for FY 2025-2026 are $377,238.
BACKGROUND:
The City provides for the maintenance costs of Citywide street lighting and downtown landscaping through a Street Lighting and Landscaping Assessment District. The district was formed pursuant to the California Landscaping and Lighting Act of 1972. The district must be renewed annually through a series of City Council resolutions, culminating with the June 17, 2025 public hearing and consideration of Resolution No. 25-0083.
The following is a summary of previous City Council actions:
April 1, 2025 - Adoption of Resolution No. 25-0031 ordering plans, specifications, cost estimates and the assessment engineer’s report of annual assessments.
May 20, 2025 - Adoption of Resolution No. 25-0044 approving the assessment engineer’s report for the annual levy of street lighting assessments for FY 2025-2026.
May 20, 2025 - Adoption of Resolution No. 25-0045 declaring the City Council’s intention to provide for the annual levy and collection of assessments for street lighting maintenance and setting the public hearing for June 17, 2025.
DISCUSSION:
The assessments for FY 2025-2026 ($377,238), combined with a City contribution of $13,765 for Downtown Streetscape (zone 10), will be used entirely for maintenance and operation of the street lighting (zones 1 through 9) and the Downtown Streetscape (zone 10). The City’s contribution of $13,765 represents the benefit received by the City via the inclusion of City Hall frontage along Highland Avenue in the Streetscape area (zone 10). In addition, the General Fund will be providing an operating subsidy of $284,462 to cover shortfalls of $268,152 for street lighting (zones 1 through 9) and $16,310 for Streetscape (zone 10).
In summary, total estimated revenue, including the General Fund contribution for FY 2025-2026, is $391,003, while the budgeted expenditures for all zones is $675,465, resulting in an estimated deficit of $284,462.
As discussed during the FY 2025-2026 budget meetings and in prior staff reports, the Street Lighting and Landscaping Fund requires a subsidy from the General Fund to relieve the deficit in the current year and for the foreseeable future. Ongoing deficits, totaling an estimated $1.6 million over the next five years, can be alleviated through service level reductions/efficiencies, increased assessments (requiring a Proposition 218 vote), or other new revenue sources, which may also require voter approval.
PUBLIC OUTREACH:
This public hearing is the final step in the process to establish the FY 2025-2026 assessment. The public hearing was properly noticed in The Beach Reporter on June 5, 2025, and the assessment engineer’s report, map of assessment zones, and register of assessment levies are on file with the City Clerk.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Resolution No. 25-0083
2. Engineer's Report Landscaping and Street Lighting Maintenance Assessment District Fiscal Year 2025-2026 (Including District Map)