Title
City Code Chapter 3.124 Maintenance Assessment Districts - Fiscal Year (FY) 2026/27 Annual Proceedings
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FileID
File ID: 2026-00757
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Location
Location: District 2, 3, and 8
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Recommendation
Recommendation: Adopt: 1) a Resolution approving the Willowcreek Maintenance Assessment District Engineer’s Annual Report and levying the assessment for Fiscal Year (FY) 2026/27; 2) a Resolution approving the Northside Subdivision Maintenance District Engineer’s Annual Report and levying the assessment for FY2026/27; 3) a Resolution approving the Laguna Creek Maintenance District Engineer’s Annual Report and levying the assessment for FY2026/27; and 4) a Resolution approving the Neighborhood Water Quality District Engineer’s Annual Report and levying the assessment for FY2026/27.
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Contact
Contact: Brent Mueller, Senior Development Project Manager, (916) 808-5715, bmueller@cityofsacramento.org; Eric Frederick, Special Districts Manager, (916) 808-5129, efrederick@cityofsacramento.org; Department of Finance
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Background
3-Willowcreek Resolution
4-Willowcreek Exhibit A - FY2026/27 District Budget and Parcel Assessment
5-Willowcreek Exhibit B - FY2026/27 Engineer’s Annual Report
6-Northside Resolution
7-Northside Exhibit A - FY2026/27 District Budget and Parcel Assessment
8-Northside Exhibit B - FY2026/27 Engineer’s Annual Report
9-Laguna Creek Resolution
10-Laguna Creek Exhibit A - FY2026/27 District Budget and Parcel Assessment
11-Laguna Creek Exhibit B - FY2026/27 Engineer’s Annual Report
12-Neighborhood Water Quality District (NWQD) Resolution
13-NWQD Exhibit A - FY2026/27 District Budget and Parcel Assessment
14-NWQD Exhibit B - FY2026/27 Engineer’s Annual Report
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Description/Analysis
IssueDetail
Issue Detail: Pursuant to Sacramento City Code section 3.124.190, the following maintenance assessment districts (Districts) must present an annual budget and engineer’s report to City Council:
• Willowcreek Maintenance Assessment District (Willowcreek)
• Northside Subdivision Maintenance District (Northside)
• Laguna Creek Maintenance District (Laguna Creek)
• Neighborhood Water Quality District (Neighborhood Water Quality)
The Districts were formed to provide various maintenance and operations services such as street landscape, park, open space, drainage basin, and wetlands maintenance as well as water quality programs. More detailed descriptions of the services provided in each district are listed in the Background section of this report.
Approval of the Districts’ annual budgets will authorize the City to collect assessments in the amount sufficient to provide funding for maintenance, operations, and water quality services required in each District for FY2026/27.
Policy Considerations: The requirements for the annual proceedings for these Districts are set forth in Sacramento City Code section 3.124.190, which requires the filing of an annual engineer’s report (Exhibit B to the attached Resolutions) describing the required maintenance work and associated costs before levying annual assessments.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations:
California Environmental Quality Act (CEQA): Under the CEQA Guidelines, continuing administrative activities of an assessment district and creation of government funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment do not constitute a project and are therefore exempt from CEQA review (14 Cal. Code Regs. § 15378(b)(2), (b)(4)).
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation:
• Willowcreek: The recommended action supports Best Management Practices (BMPs) to reduce storm water pollution as required by the Federal Clean Water Act and the City’s National Pollutant Discharge Elimination System (NPDES) Permit within the district’s boundaries.
• Northside: This action supports BMPs to provide maintenance activities associated with the Northside Subdivision Wetlands Mitigation Program as required by the U.S. Army Corps of Engineers Permit for the Northside Subdivision. The district also funds maintenance activities for the landscaped area adjacent to Marysville Boulevard.
• Laguna Creek: This action supports BMPs to provide funding for environmental monitoring and maintenance activities associated with the Laguna Creek Wetlands Mitigation Program as required by the U.S. Army Corps of Engineers Permit.
• Neighborhood Water Quality: This action supports BMPs to provide funding for maintenance of wetland areas identified in the U.S. Army Corps of Engineers’ Nationwide Permits, Water Quality Swales and Detention areas, and landscaping improvements located in and/or adjacent to residential subdivisions in this district.
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FinancialConsiderations
Financial Considerations: The Districts are self-supporting and have no impact on the General Fund. The cost of maintenance, operation, and program services required by each District will be funded through the annual assessments. A summary of each District budget and proposed assessment to be levied is provided below. Detailed information about the Districts’ revenues and expenditures for FY2026/27 are shown in Exhibit A to the Resolutions and detailed in the Engineer’s Annual Report (Exhibit B to the attached Resolutions) filed with the Infrastructure Finance Division of the Department of Finance which is designated by the City Clerk to be the repository of documents associated with special districts. Although the assessment amounts are increasing for FY2026/27, the proposed FY2026/27 assessments to be levied for most parcels within the Districts are below the maximum authorized amount by land use type for each District, as shown on Exhibit A attached to each resolution.
• Willowcreek: The total assessment for FY2026/27 is projected at $92,922, with an expense budget of $62,538. Collection of surplus revenues is intentional to increase fund balance. The proposed assessment to be levied of $102.00 per residential parcel for FY2026/27 is a 0.47% increase over the FY2025/26 assessment of $101.52, which equates to an increase of $0.48 per residential parcel. The assessment levied will continue to increase in future years to fully fund expenses and increase fund balance to a prudent level. The proposed assessment to be levied is below the maximum authorized assessment amount of $184.07 per residential parcel. Pursuant to City Code section 3.124.120 and Resolution No. 1998-0326, City Council previously authorized annual automatic increases to the maximum authorized assessment amount to account for inflation, provided such annual increases do not exceed 4%. The maximum authorized annual assessment is increasing by 2.18% for FY2026/27 based on the 2024 San Francisco-Oakland-Hayward area (All Urban Consumers) Price Index annual average increase of 2.18%.
• Northside: The total assessment for FY2026/27 is projected at $17,369, with an expense budget of $17,736. The proposed assessment to be levied of $155.08 for FY2026/27 is a 2.17% increase over the FY2025/26 assessment levied of $151.78, which equates to an increase of $3.30 per single family home. The assessment will continue to increase in future years to fully fund expenses and increase fund balance to a prudent level. The proposed assessment to be levied is below the maximum authorized assessment amount of $191.25. Northside does not have an automatic annual adjustment to the maximum authorized assessment amount to account for inflation. The maximum authorized annual assessment is therefore not increasing for FY2026/27, and as noted above, the proposed assessment to be levied for FY2026/27 is below the maximum.
• Laguna Creek: The total assessment for FY2026/27 is projected at $252,723, with an expense budget of $254,730. Assessments vary by land use, but the total proposed assessment amount to be levied for FY2026/27 represents a 1.00% increase over the total FY2025/26 assessment amount. The estimated increase in the assessment for single family homes is $0.43. The assessment is now at the maximum the authorized assessment amount. Laguna Creek does not have an automatic annual adjustment to the maximum authorized assessment amount to account for inflation. The maximum authorized annual assessment is therefore not increasing for FY2026/27. The proposed assessment to be levied for FY2026/27 is at the maximum.
• Neighborhood Water Quality: The total assessment for the five subdivisions for FY2026/27 is projected at $104,119, with an expense budget of $129,665. Such deficit spending is intentional as surplus fund balance is available to support the expense budget. Assessments vary by land use in each of the five subdivisions, but the total proposed assessment to be levied for FY2026/27 for all five subdivisions represents an 8.84% increase over the total FY2025/26 assessment levied. The increase in the estimated assessment for parcels ranges between $3.36 and $17.52 per single family home and $49.77 and $102.63 per commercial parcel, with the exception of the Sheldon 20 subdivision assessment which is not proposed to increase for FY2026/27. It is anticipated that assessments will continue to increase in future years to fully fund expenses as the excess fund balance is depleted. The proposed assessment amounts to be levied are below the maximum authorized assessment amounts. Pursuant to City Code section 3.124.120 and Resolution No. 2003-0609, City Council previously authorized annual automatic increases to the maximum authorized assessment amount to account for inflation, provided such annual increases do not exceed 4%. The maximum authorized annual assessment is increasing by 2.18% for FY2026/27 based on the 2024 San Francisco-Oakland-Hayward area (All Urban Consumers) Price Index annual average increase of 2.18%.
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LocalBusinessEntrprise
Local Business Enterprise (LBE): Not applicable.
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