FROM:
Finance
SUBJECT:
Title
Public Hearing to Establish Fiscal Year 2025-2026 Assessment Rates for Landscape and Lighting Maintenance Districts
End
RECOMMENDATION:
Recommendation
1. Adopt Resolution No. 2025-080, of the City Council of the City of Fontana, California, Confirming a Diagram and Assessment, and Levying the Assessment for Landscape Maintenance District No. 1 (“LMD #1” throughout the City) for Fiscal Year 2025-2026.
2. Adopt Resolution No. 2025-081, of the City Council of the City of Fontana, California, Confirming a Diagram and Assessment, and Levying the Assessment for Landscape Maintenance District No. 2 (“LMD #2” Village of Heritage) for Fiscal Year 2025-2026.
3. Adopt Resolution No. 2025-082, of the City Council of the City of Fontana, California, Confirming a Diagram and Assessment, and Levying the Assessment for Landscape Maintenance District No. 3 (“LMD #3” Hunter’s Ridge) for Fiscal Year 2025-2026.
4. Adopt Resolution No. 2025-083, of the City Council of the City of Fontana, California, Confirming a Diagram and Assessment, and Levying the Assessment for Landscape Maintenance District No. 3- 1 (“LMD #3-1” Empire Center) for Fiscal Year 2025-2026.
5. Adopt Resolution No. 2025-084, of the City Council of the City of Fontana, California, Confirming a Diagram and Assessment, and Levying the Assessment for Local Lighting Maintenance District No. 3 (“LLMD #3” Hunter’s Ridge) for Fiscal Year 2025-2026.
End
COUNCIL GOALS:
• Practice sound fiscal management by fully funding liabilities and reserves.
• Practice sound fiscal management by developing long-term funding and debt management plans.
• Enhance the local environment for future generations and create a healthy economic and environmental future by promoting programs that encourage reducing Green House Gas emissions.
DISCUSSION:
On June 10, 2025, City Council adopted Resolutions 2025-024 through 2025-033, inclusive, declaring its intention to levy and collect assessments for Fiscal Year 2025-2026 and setting July 22, 2025, for the public hearing to receive public comment pursuant to the Landscape and Lighting Act of 1972. Notice of the public hearing was published as required by law. The annual assessment process for the landscape and lighting assessment districts must be completed before August 10, 2025, in order to place the assessments on the County tax rolls.
The Fiscal Year 2025-2026 proposed assessment rates are as follows:
• LMD # 1 - the proposed rates for FY 2025-2026 for residential units range from $77.76 to $495.92 per unit, the commercial and industrial areas range from $117.24 to $613.77 per acre. The proposed rates are the same as the prior year rates.
• LMD # 2 (Village of Heritage) - the proposed rate for FY 2025-2026 for residential units is $554.75 per unit, an increase from the prior year of 2% ($10.88 per unit).
• LMD # 3 (Hunter’s Ridge) - the proposed rate for FY 2025-2026 for residential units is $605.00 per unit, an increase from the prior year of 10% ($55.00 per unit).
• LMD # 3-1 (Empire Center) - the proposed rate for FY 2025-2026 for commercial property is $1,000 per acre, the same as the prior year rate.
• LLMD # 3 (Hunter’s Ridge) - the proposed rate for FY 2025-2026 for residential property is $22.89 per unit, an increase from the prior year of 2% ($0.45 per unit).
It is projected that the proposed rates will be sufficient to fund the estimated maintenance costs for Fiscal Year 2025-2026 for all LMD’s with the exception of LMD #1 and LMD #2. Various operational options are being considered to mitigate the on-going funding deficit.
The City’s assessments for all districts have been reviewed in light of the passage of Proposition 218. The recommended actions comply with the provisions of this proposition.
FISCAL IMPACT:
The proposed assessment rates for Fiscal Year 2025-2026 are unchanged from the prior year except for LMD # 2 which will increase by 2% ($10.88 per unit) to $554.75 for the residential rate, LMD # 3 which will increase by 10% ($55.00 per unit) to $605.00 for the residential rate, and LLMD # 3 will increase by 2% ($0.45 per unit) to $22.89 for the residential rate. The proposed assessment rates for Fiscal Year 2024-2025 are projected to generate approximately $4.66 million.
MOTION:
Approve staff recommendation.