Title
Neighborhood Landscaping District - Initiate Annual Proceedings for Fiscal Year (FY) 2026/27
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FileID
File ID: 2026-00819
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Location
Location: District 1, 2, 5, 6, 7, and 8
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Recommendation
Recommendation: Adopt a Resolution: 1) approving the Fiscal Year (FY) 2026/27 Engineer’s Annual Report for the Neighborhood Landscaping District (District); 2) declaring the intention to levy and collect assessments for maintenance of landscaping improvements for FY2026/27 for the District; and 3) setting the time and place for a Public Hearing for 2:00 p.m. on June 9, 2026.
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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-Schedule of Proceedings
4-Resolution
5-Exhibit A (District Map)
6-Exhibit B (Proposed FY2026/27 Subdivision Budgets & Parcel Assessments)
7-Exhibit C (FY2026/27 Engineer’s Annual Report)
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Description/Analysis
IssueDetail
Issue Detail: The District is a special assessment district formed under the California Landscaping and Lighting Act of 1972 (California Streets and Highways Code § 22500 et seq.) (Landscaping and Lighting Act). Subdivisions included in the District are levied an annual assessment to fund the maintenance of landscaping improvements located adjacent to and/or along the frontage of those subdivisions.
Pursuant to the Landscaping and Lighting Act and City Code Chapter 3.124, an Engineer’s Annual Report (Annual Report) for the District is required to be prepared for Council review and approval. The Annual Report describes the improvements to be maintained by the District and recommends the assessments to be collected to fund such maintenance. The Annual Report has been prepared and, on March 24, 2026, Council directed that such Annual Report be filed with the City Clerk (Resolution 2026-0077). Council approval of the Annual Report is now required before the City can collect assessments to provide funding for the maintenance of the landscaped areas adjacent to the 34 subdivisions in this District for FY2026/27.
Council must also adopt a Resolution of Intention for its levy and collection of assessments for the District and then hold a hearing at a future date to formally confirm the assessments. Additional information on the District is provided in the Background section of this report.
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PolicyConsiderations
Policy Considerations: The actions in the recommended Resolution are required by the Landscaping and Lighting Act and City Code Chapter 3.124 for annual proceedings of an existing district.
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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: None.
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RationaleforRecommendation
Rationale for Recommendation: Approval of the Annual Report (Exhibit C to the Resolution) supports funding, via property-based assessments, for maintenance of landscaping improvements located adjacent to or along the frontage of residential subdivisions within the District.
The recommended Council action is necessary to allow staff to notify the public of the proposed hearing, which has been set for 2:00 p.m. on May 26, 2026. At the conclusion of the public hearing, staff will recommend Council adopt the budget and levy the assessments.
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FinancialConsiderations
Financial Considerations: The total District assessment is projected to be $373,641 for FY2026/27 in support of a projected operating budget of $379,300, with the difference being paid from available fund balance. This equates to a weighted average proposed assessment of $124.50 per single family parcel, which is an increase of $3.62 or 2.99% over the weighted average actual assessment levied in FY2025/26. The assessments and the method by which they were derived are detailed in the Annual Report.
The 34 subdivisions in the District each have assessments that vary based on their operational needs, and for each subdivision the assessments proposed to be levied are at or below their FY2026/27 maximum authorized amounts. As discussed in more detail in the Background section of this report, the maximum authorized assessment varies for each subdivision. In 16 of the 34 subdivisions the maximum authorized assessment does not increase. In the remaining 18 subdivisions the maximum authorized assessment is subject to an annual increase determined by the percentage change in the Consumer Price Index (CPI) - San Francisco All Urban Consumers for the previous year, but not to exceed either 3% or 4% depending on the subdivision. For each subdivision in the District, the FY2026/27 costs and a breakdown of the maximum authorized assessment and proposed actual assessment per single-family lot is provided in Exhibit B to the Resolution.
It is projected that one subdivision will end FY2025/26 with a negative fund balance. Infrastructure Finance staff continues to work with the Department of Public Works (who manages performance of the maintenance work) to develop funding and maintenance solutions for these subdivisions. The FY2026/27 Proposed Budget reflects a plan to continue to balance the budget of that one subdivision and ensure each subdivision in the District stays within budget.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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