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Council confirms Landscape & Lighting District levy; county maintenance gap continues to be subsidized by general fund

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Summary

Hermosa Beach confirmed the Landscaping and Street Lighting District levy for FY 2025-26 and heard staff say the assessment rate has been fixed since Prop 218 in 1996; the general fund makes up roughly a $415,000 shortfall.

Public Works Director Joe San Clemente presented the annual landscape and lighting district levy at the June 24 meeting. San Clemente said the district has operated for about 35 years and the assessment has been effectively locked since the passage of Proposition 218 in 1996; the current assessment is roughly $41.50 per dwelling unit and the district runs an operating shortfall that the general fund currently covers.

San Clemente explained the required three‑step process for levying assessments onto the tax roll: engineer’s report, noticed steps and a public hearing. Staff recommended confirming the district diagram and assessment levy for FY 2025-26 and also proposed a feasibility study to examine whether the district could pursue a Prop 218 ballot process to raise rates, which would require voter approval.

Action: The council conducted the hearing and adopted a resolution confirming the levy for FY 2025-26. The motion to confirm the assessment passed unanimously.

Ending: San Clemente said staff will proceed with the levy for the fiscal year and will study options for addressing the structural funding shortfall, including consideration of a Prop 218 process and potential policy changes to reduce general‑fund subsidy.