Council adopts annual assessments for landscape, lighting and benefit districts; staff outlines Proposition 218 process and sidewalk responsibilities

The Houston City Council on July 28 adopted a resolution confirming diagrams, assessments and reports and levying assessments for fiscal year 2025-2026 for the city's landscape and lighting districts and benefit assessment districts, and directed the city's assessment engineer to file certified copies of the reports with the Stanislaus County tax collector.

City staff told the council the annual Consumer Price Index adjustment rounded to about 2.6 to 2.7 percent will apply to the districts this year. The staff presentation noted the city currently has 15 lighting and landscaping districts and seven benefit assessment districts; it also said five LLDs and one BAD are currently operating in the red and will require a Proposition 218 procedure this fiscal year.

The Proposition 218 process, staff said, will use mailed ballots and require a majority of ballots cast ("50% plus 1") to pass. "We will be working with Harrison Associates to get that done," a city staff member said.

Council members pressed staff on sidewalk repair responsibilities in assessed districts. Staff said whether the district pays for sidewalk repairs depends on whether sidewalks are specifically called out in the district's engineer's report. "So if we are collecting monies regarding sidewalks and it's listed in the engineering report for the subdivision that they're located in, then we would take care of the sidewalk repair," the city staff member said. If sidewalks are not listed in the assessment, staff said the municipal code makes the adjacent property owner responsible and code enforcement will send notice when an issue is reported. Staff added it has not seen a letter that says the city will undertake repair in lieu of the property owner.

The council voted to adopt the resolution and to direct Harrison Associates, the assessment engineer, to file certified copies of the resolution and reports with the Stanislaus County tax collector.

Discussion versus formal action: staff presentations and answers to council questions comprised the discussion portion; the formal action was the council's motion to adopt the resolution and the vote to approve it. Staff described implementation steps (mail ballots for Proposition 218, public notices, and coordination with Harrison Associates) and identified the districts that will require the additional Proposition 218 process this fiscal year.

Background: landscape and lighting districts and benefit assessment districts are special financing districts that levy assessments on property owners inside each district to fund services and improvements such as lighting, landscaping, masonry-wall maintenance and tree replacement. Staff indicated some districts were created at subdivision formation and are re-evaluated annually for service needs and funding levels.

No public speakers addressed the item during the meeting; staff confirmed the required newspaper advertisements for the public hearing had been posted.

Mayor Proton Parker moved to adopt the resolution and to direct the assessment engineer to file; the motion passed by the council.

For follow-up: staff said they will begin the Proposition 218 notice and mail-ballot process for the affected districts and will work with Harrison Associates on the filings required by the county tax collector.