Landscape & Lighting Assessment Districts (LLADs)

Landscape & Lighting Assessment Districts (LLADs)

Description
The goal of Assessment Districts is to provide funds for maintenance, repair, and replacement of identified assets; including providing services, utilities and capital improvements associated with landscape medians, corridors, entrances, and parks. The work is anticipated to specifically enhance the environment and economic value of those properties located with the assessment district. The District’s responsibilities include the maintenance and repair of all improvements provided by the assessment districts, with services including, but not limited to: buildings, park facilities, landscapes, irrigation systems, lighting, fences, walls and signs. Mowing, pruning, blowing, and weed abatement is currently contracted to private firm(s).


LLAD Public Engagement Workshop - March 15, 2022
On March 15, 2022 - District Staff held a hybrid Public Engagement workshop to help educate the community on LLADs. This included information on when, how, and why they are formed; what happens after formation; and how monies collected are accounted for and utilized. Participants were encouraged to ask their questions both in-person and virtually. The workshop was recorded and can be found in the link below. Additional information is also provided here and includes a 'definitions' sheet and an outline of the Q&A during the workshop.

 - Zoom Webinar Recording from March 15, 2022 Public Engagement Workshop
 - LLAD Definitions - This handout was provided on-site during the workshop
 - Workshop Q&A Session - This is an outline of questions received during the workshop


Funding Source
The assessments districts are funded through assessments levied on parcels, the general benefit that is provided by the District General Fund, and from any interest income. The assessments levied directly benefit the real properties assessed. The District is in compliance with all laws and regulations, including Proposition 218, with respect to the assessments levied through the assessment district. The assessment revenue is billed and collected by El Dorado County in December and April of each year.

Resolution 2021-05 - Approving Preliminary Engineers Reports Declaring Its Intention to Continue FY2021-22 Annual Assessments (5/13/2021)

There are several underfunded assessment districts that do not have an annual assessment inflationary factor or are funded at a greater amount by the General Fund. 
LLADs actual levy as a percentage of maximum levy

General Benefits vs. Specific Benefits

Proposition 218 requires agencies levying a benefit assessment to separate the general benefits from the special benefits to ensure that property owners subject to the benefit assessment are not paying for general benefits.  An assessment can fund special benefits but cannot fund general benefits. The general benefits for the assessments have been explicitly calculated and quantified and excluded from the assessments as described in the engineer’s report. The assessments have been apportioned to each property based on proportional special benefit received by each property.  The General Fund is contributing to the budget of each LLAD to cover any general benefits.

Source of Authority
The El Dorado Hills Community Services District is authorized as a local agency pursuant to the Streets and Highways Code of the State of California, commonly known as the Landscape and Lighting Act of 1972, to create assessment districts.

Underfunded LLAD Information
There are several underfunded assessment districts that do not have an annual assessment inflationary factor or are funded at a greater amount by the General Fund.

The District began the engagement process in January, 2018, hosting a meeting for the owners of El Dorado Hills who pay into four District managed Landscape Lighting Assessment Districts (LLAD's), specifically those formed without an annual inflationary factor (Bass Lake A, Green Valley Hills, La Cresta, Oakridge).

In response to questions received during the January meeting, the District held individual meetings in late 2019/early 2020 with each of the four (4) LLADs without an inflationary factor and are in an underfunded status. Since those meetings, the District has updated its Cost Allocation and Asset Reserve Studies, and are re-engaging owners to finalize addressing the condition of their LLAD.

The owners of each of the four underfunded LLAD areas were engaged in the following process

  1. May 3, 2021 – Letters were mailed to each property owner within the four LLADs to finalize addressing the condition of their LLAD and notifying owners of an upcoming vote by mail ballot to either approve or disapprove of amending the formation documents to update services costs and implement an annual escalator.
  2. A public hearing was held on July 15, 2021 to receive public comment, count and report the ballot results, and to approve or deny the Amended Assessment rates and/or the inclusion of an escalation factor for the Landscape Lighting Assessment District’s effective Fiscal Year 2021-2022. A summary of the results from the mail in ballots can be found here.

At the public hearing that was held of July 15, 2021 a no vote was received from all four LLADs to increase the maximum assessment. This no vote will affect the District’s ability to perform the necessary maintenance and replacement of assets included in the LLADs. Adjustments to the routine maintenance schedule and replacement of assets will be necessary to keep the LLADs operating with a balanced budget. Bass Lake A was the only LLAD to approve the one-time annual assessment increase, raising the $99 per parcel assessment to $287.67, which will assist in providing the necessary funds for the District to perform the current management of the LLAD.