TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Brian Ambrose, Community Services Director
PREPARED BY: Crystal Arora, Management Analyst - Parks & Recreation
SUBJECT:
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Levy of Annual Assessments for Murrieta Consolidated Landscape and Lighting District
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ABSTRACT
The following agenda report seeks City Council approval to prepare and accept the final draft of an Engineer’s Report for the Consolidated Landscape and Lighting District. Upon acceptance of the Engineer’s Report, a public hearing date will be set. The agenda report details the history of the levy of annual assessments, the procedure for approval of the annual levy, and the changes to be discussed at the upcoming public hearing. The outcome of this agenda report does not formally accept any monetary changes to levy assessments.
RECOMMENDATION
recommendation
Adopt Resolution No. 26-4934 entitled: A Resolution of the City Council of the City of Murrieta, California, Ordering the Preparation of the Engineer’s Annual Levy Report for the Consolidated Landscaping and Lighting District; and
Adopt Resolution No. 26-4935 entitled: A Resolution of the City Council of the City of Murrieta, California, Preliminarily Approving the Engineer’s Report for the Consolidated Landscaping and Lighting District and Declaring the City’s Intention to Levy and Collect Assessments for Fiscal Year 2026/27 in the Murrieta Consolidated Landscaping and Lighting District and Setting A Public Hearing for July 7, 2026.
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PRIOR ACTION/VOTE
None.
STRATEGIC ALIGNMENT
This item aligns with the City Council goal of: maintaining a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency relating to an administrative priority. Each year, the City Council is required to initiate proceedings and adopt resolutions allowing for the levy and collection of annual assessments to be placed on the County tax rolls for parcels in the City limits. The proposed assessments are based on the estimated costs and expenses associated with the regular annual maintenance, operation, and servicing of the landscaping and lighting improvements within each zone that resulted from the development of properties within the Community Services District (CSD).
DISCUSSION
The City of Murrieta (City) currently has one Landscape and Lighting Assessment District, as described below. Each year, the maximum assessment may be increased by the greater of the change in the Consumer Price Index (CPI) or three percent (3%) for inflation for certain districts in accordance with the adjustment authorized by the property owners at the time of each district’s formation. For certain other districts, the maximum assessment may be increased by the greater of the change in the CPI or two percent (2%). A district that is not yet assessed at the maximum levy allowed, per the Engineer’s Report (Report), may be increased by a higher amount.
Pursuant to the Landscape and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (Act), after formation of landscape and lighting districts, the City is required to follow certain procedures in conjunction with the annual levy of the assessment:
First, the City Council is required to adopt an initial resolution ordering the engineer (Willdan Financial Services) to prepare and file an annual levy report with the City Clerk. The annual levy report includes any proposed new improvements or changes to existing improvements within the District. Once the report is prepared, the City Council may approve it as is or as modified by the City Council.
Next, the City Council must adopt a resolution of intention to initiate proceedings and declare the intent to levy and collect the proposed assessments and to set a public hearing. The resolution of intention should generally do the following: (a) declare the intention to levy the specified proposed assessments for the coming fiscal year, (b) describe existing improvements and any changes, (c) refer to the District by its official name and indicate the general location of the district, (d) refer to the Report for a more detailed description, (e) set the time and place, and give notice of a public hearing, and (f) state whether the assessment is proposed to increase from the prior year. From the time of the publication of the resolution of intention to the public hearing, the Report must be available for inspection in the City Clerk’s office by residents. The attached resolutions (Attachments 1 and 2) contain the details necessary and as required by the 1972 Act (as defined below).
If the City Council approves the recommendations in the report, a public hearing will be set for July 7, 2026, at which time interested persons will have an opportunity to file written protests or to verbally support or protest the proposal. The City Clerk will cause notice to be published once at least ten days prior to the public hearing. The Council must consider such protests and may order changes in any of the matters provided in the Report. To the extent there is an increase proposed outside of the maximum approved rate, the increase must be abandoned if a majority of interested persons file protests prior to the conclusion of the public hearing; however, the proposed annual levy is within the maximum approved rate and is therefore not deemed an “increase” for the purposes of the 1972 Act (as defined below) or Proposition 218.
To save paper and reduce the bulk of this item, the parcel numbers and exact assessment amount for each parcel are on file in the City Clerk’s Office and may be reviewed by any interested party.
For Fiscal Year 2026/27, the Murrieta Consolidated Landscaping and Lighting District (Consolidated District) consists of 31 primary benefit zones, four (4) of which represent a total of 13 sub-zones. Of the 31 zones, 30 are active, and one (1) is dormant. Each of the corresponding zones and sub-zones fund specific improvements that benefit parcels within those zones and sub-zones. The parcels receiving this assessment are identified by their own Assessor’s Parcel Number (APN). The County Auditor/Controller uses APNs to identify the tax roll properties charged for this special district benefit. The improvements and the costs of those improvements are identified and budgeted separately for each zone based on the planned services, operation, administration, and maintenance of the Consolidated District improvements authorized under the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code (1972 Act).
History
Prior to Fiscal Year 1999/2000, local landscaping and lighting improvements associated with new developments and various areas of the City were funded by rates and charges levied through the City’s CSD, and these specific improvements are still provided and funded through the CSD today. Although the City could have continued using the CSD as the mechanism for maintaining local landscaping and lighting improvements, it was recognized that the CSD was not the most efficient way to address the rapid development in the City; therefore, between Fiscal Year 1999/2000 and Fiscal Year 2003/04 the City formed various landscaping and lighting districts under the provisions of the 1972 Act and the California Constitution Article XIIID, to address local improvements associated with these developments.
In Fiscal Year 2003/04, the City consolidated the seventeen original landscape and lighting districts into a single district pursuant to Section 22605 (d) of the 1972 Act and established the Consolidated District. As part of the consolidation, the original districts were established as zones, and any benefit zones within those original districts were established as sub-zones. The consolidation was a necessary step toward reducing the administrative complexities of multiple staff reports and resolutions for each district to be reviewed and adopted each year. The consolidation did not directly impact or change the maximum assessment rates previously approved by the property owners.
Analysis
The annual assessments associated with local improvements are budgeted separately for each zone and charged only to those APNs or parcels that benefit from those improvements and services. With the formation of each original district and annexation into the Consolidated District, an annual adjustment of two or three percent was approved by the property owners. The annual assessment for each zone varies based on the services provided and the number of parcels within that zone, ranging from $76.08 per parcel in Zone 22 for streetlights only to $1,675.75 per parcel in Zone 3 for full maintenance and streetlights.
Some zones have no increases proposed for the next fiscal year, and those with increases range from $2.72 to $180.78 annually per benefit unit. Please refer to the charts in Attachment 2, Exhibit A, pages 47 to 49, for the proposed rates for each zone and sub-zone assessment. If approved, a public hearing will be held on July 7, 2026, to hear any protests or objections in reference to the annual levy of assessments, the extent of the maintenance services, and any other matters by those property owners affected.
PUBLIC NOTICING
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
FISCAL IMPACT
The Consolidated District levy amount for Fiscal Year 2026/27 is estimated to be $5,477,710.60. The levy and collection of these annual assessments will help offset the costs associated with the maintenance and services provided by the Community Services District. The revenue budgets for the estimated levy are to be included in the upcoming Fiscal Year 2026/27.
ATTACHMENTS
ATT 1 - Resolution No. 26-4934
ATT 2 - Resolution No. 26-4935
ATT 3 - Map of LLD Charges by Zone