Lathrop council approves annual maintenance-district levies, debates escalator clauses and general‑fund subsidies

The Lathrop City Council on May 12 approved annual assessments for the city’s maintenance districts, including proposed increases for Mossdale and Stonebridge and a general‑fund subsidy for the Woodfield district.

Deputy City Manager Thomas Hedegaard told the council maintenance districts are “special assessments that provide benefiting property owners the opportunity to pay for enhanced landscaping and related improvements, maintenance, and services beyond those generally provided by the city.” The council then conducted public hearings and voted on the levies.

Why it matters: The assessments fund landscaping, lighting, storm drains and similar neighborhood services. Some districts have built‑in “escalator” clauses that automatically raise rates each year; others do not and therefore rely on general‑fund subsidies when costs rise. Council members expressed concern about fairness to residents and the size of district fund balances.

Most significant votes and proposals: For the citywide package the council approved the maintenance‑district levies across multiple zones. The staff presentation showed Mossdale’s proposed per‑parcel assessment capped at $329.68 and an annual maximum increase of $9.61 per parcel tied to its escalator; the Mossdale fund is projected to end next fiscal year with about $210,000 and will still require a small general‑fund contribution for some districts. Hedegaard said Storm Drain Zone 1 and Crossroads (Zone 1A) were created without escalators and will require general‑benefit contributions of approximately $154,000 and $50,000, respectively, in the coming year.

Stonebridge: Hedegaard said Stonebridge has both landscape and drainage/lighting districts with 5% escalators. The Stonebridge landscape proposed assessment was $533.95 and the drainage/lighting proposed assessment was $347.55; staff reported an ending fund balance that was north of 50% of operating expenditures and expects major capital replacements (walls, landscaping) in coming years.

Woodfield: Hedegaard explained Woodfield’s district has not had an escalator since it was created; the district will require a general‑fund contribution of $64,421 for fiscal year 2025–26. He and Finance Director Kerry James told council the city prefers having fund balances (the city’s target is generally 25%–50% of operating expenditures) to pay for multi‑year capital needs rather than relying on year‑to‑year general‑fund transfers.

Council debate and direction: Vice Mayor Torres O'Callaghan and Council Member Dresser questioned whether existing fund balances (for example, Mossdale’s reported ~$210,000) should reduce the proposed increases, arguing for more “reasonableness” given the local economic climate. Staff said balances are held specifically for each district and often earmarked for future capital replacements (irrigation, landscaping, street overlays) and that adding escalators to districts created without them would require a Proposition 218 vote of benefiting property owners (50%+1 approval) before a permanent automatic increase could be added.

Outcome and next steps: The council approved the assessments and related resolutions at the meeting (roll call recorded). Staff will proceed with implementation and continue to provide details on fund balances and capital plans when council requests further analysis.