San Marcos council adopts assessments for Landscape & Lighting Districts; debate on subsidy and service levels

The San Marcos City Council on July 22 adopted resolutions confirming diagrams and levying annual assessments for Landscaping & Lighting District No. 1 and the Vallecito Town Center Street Maintenance District for fiscal year 2025-26, after public hearings and discussion about maintenance funding.

City staff explained the Legal framework: districts formed under the Landscaping and Lighting Assessment Act of 1972 must be renewed annually when an assessment is levied. Multiple speakers raised concerns that Proposition 218 removed automatic annual escalators for certain assessment districts, leaving district revenues flat while maintenance costs have risen.

Community member Chris Freeman summarized the financial impact during public comment: "We collect $530,000 every year from those 5 communities and that amount was frozen when Prop 218 came out. So since then, we've had to supplement the maintenance of those 5 neighborhoods from the general fund." Freeman asked whether the city could either ask neighborhoods to vote to annex into a district with an escalator or reduce maintenance to match current assessments.

Council members noted legal limits and practical expectations. City staff advised that the city is obligated to spend district revenues on the improvements within the specific district and that, while the city must maintain health-and-safety standards, there is no legal requirement for the city to maintain aesthetic levels beyond safety. Council members argued that reducing maintenance or removing installed infrastructure would create liability risks and would degrade community standards. Council member Ed Musgrove said residents expect the city to maintain public streetscapes and amenities and expressed concern about removing services.

The council voted to adopt the resolutions for Landscaping & Lighting District No. 1 and the Vallecito Town Center Street Maintenance District; both motions passed unanimously.

Council members asked staff to continue reviewing options to address long-term funding, including neighborhood votes to change assessment structures, continued use of general fund support, and prioritization of maintenance needs. Staff noted that some supplemental funding options, including Measure Q allocations for lighting in targeted areas, are being deployed where warranted.

The vote records for both resolutions were unanimous in favor: Mayor Rebecca Jones, Deputy Mayor Ed Sunella, Council member LeBlanc, Council member Ed Musgrove, and Council member Nunez.