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Council approves annual payments for small assessment district covering Natasha Lane, staff to explore recoupment options

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Summary

Council approved payments for a small assessment district covering 20 properties (Natasha Lane), while staff said the district is not self‑funding and committed to researching options, including potential Prop 218 processes, to address long‑term shortfalls.

The Montebello City Council approved consent items tied to an assessment district that serves properties on Natasha Lane but used the discussion to flag ongoing fiscal concerns about the districtstructure.

Staff explained the assessment district was created many years ago for about 20 properties; current assessments include a 3% CPI increase, which staff said has not kept pace with actual maintenance and repair costs. Recent high costs included replacement of a lift station that exceeded expected maintenance schedules.

"The reality is ... it's not paying for itself," a staff speaker said, describing the district's small size and the fact that the structure did not account for major maintenance events.

City managers told council that changing the assessment or its structure would likely require a Prop 218 vote of the affected property owners and that staff will evaluate options over the coming year and return with proposed mechanisms to recoup costs or restructure the district.

Councilmembers asked that staff bring options earlier rather than later, given projected declines in fund balance and growing maintenance needs. The related consent items were approved on roll call during the meeting.