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HOLD PUBLIC HEARING FOR THE APPROVAL OF THE ANNUAL ENGINEER’S REPORT, FY 2026-27 ANNUAL BUDGETS, AND CONFIRM AND LEVY ASSESSMENTS FOR THE STOCKTON CONSOLIDATED STORM DRAINAGE MAINTENANCE ASSESSMENT DISTRICT NO. 2005-1
recommended action
RECOMMENDATION
The City Council met on April 28, 2026, and preliminarily approved the Engineer’s cost estimate for the Consolidated Storm Drainage Maintenance Assessment District 2005-1 (District). The Council also approved the related annual assessments and scheduled the required Public Hearing for June 9, 2026.
It is recommended that the City Council now conduct a Public Hearing to consider public comments and testimony regarding the approval and adoption of the annual budgets and assessment rolls for the District.
After the Public Hearing, if a majority protest based on the assessment amount does not exist, it is recommended that the City Council adopt a resolution to:
1. Overrule all public hearing protests or objections (including all written protests not withdrawn in writing before the conclusion of the Public Hearing).
2. Approve and adopt the District Annual Engineer’s Report for the Fiscal Year (FY) 2026-27, which contains the budget for each zone.
3. Confirm and levy the assessments for each zone as set forth in the Report.
4. Submit the assessments, or a certified copy, to the San Joaquin County Auditor. The City Clerk or another authorized City official must certify the document. Once submitted, the assessments will be added to the FY 2026-27 tax roll as described in the Annual Engineer’s Report on file with the City Clerk.
It is further recommended that the City Manager be authorized to take all appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
The Municipal Utilities Department Stormwater Utility manages several Consolidated Storm Drain Maintenance Districts and Storm Drainage Basin Districts throughout the City. These Storm Drainage Maintenance Assessment Special Districts were formed pursuant to State law and the Stockton Improvement Procedure Code. The districts maintain and operate capital improvements that provide special benefits to designated areas, including stormwater quality treatment and flood control.
These Special Districts require an annual Engineer’s Report to outline budgets, boundary changes, and parcel assessments for each District. District budgets include engineering fees for preparing the Annual Report and tax rolls; attorneys’ fees; maintenance costs for the devices; City administrative costs; County collection fees; replacement reserves; and contingencies. City administrative costs cover staff time for overseeing the Annual Report and tax rolls, managing maintenance contracts, coordinating inspections and maintenance schedules, and administering District finances. Assessments are approved through a public hearing process.
If approved by the City Council, this action will adopt the FY 2026-27 Engineer’s Report, including the budgets and assessments rolls for all 15 zones within the District.
DISCUSSION
Background
On July 26, 2005, the City Council adopted Resolution 05-0329 to establish an assessment district designated as the “Stockton Consolidated Storm Drainage Maintenance Assessment District No. 2005-1” (District) and the creation and annexation of Zone 1, known as “Riverbend Zone 1.” The formation of this District was based on the provisions of the Municipal Improvement Act of 1913 (Act) and the Stockton Improvement Procedure Code (Stockton Code). Since then, 14 additional zones have been formed and annexed to the District for a total of 15 zones (Attachment A).
The Act and Stockton Code contain provisions authorizing the City to form an Assessment District and annex zones to the District’s boundaries for the maintenance and operation of improvements that provide a special benefit to an area. The purpose of the District is to provide funding for the operations, maintenance, and replacement of stormwater quality treatment devices that comply with the Stormwater Quality Control Plan and meet requirements of the Stormwater National Pollutant Discharge Elimination System Permit (NPDES), as well as regional stormwater basins and associated components.
An Annual Engineers’ Report has been prepared for the District and submitted to the City. The Engineers’ Report has determined the actual assessments for FY 2026-27 for all the zones within the District and for each separate property within those zones. A Public Hearing is required to approve these assessments before they can be included in the San Joaquin County (SJC) tax roll for collection.
For this fiscal year, the City authorized Siegfried Engineering, Inc., of Stockton, California, to prepare the FY 2026-27 Engineer’s Report. A copy of the Report was submitted to the City Clerk and is on file for review by the Mayor and City Council.
On April 28, 2026, by Resolution 2026-04-28-1208, the City Council adopted and preliminarily approved the FY 2026-27 Engineer’s Report, which includes the proposed budgets for the maintenance and operation of the improvements for each zone within the District, and the Assessment Rolls. The City Council action also scheduled the public hearing for June 9, 2026.
The property owners are responsible for funding only those improvements within their zone that are identified in the original Engineers’ Report as a special benefit. Each assessed parcel is assigned a dwelling unit equivalent factor (DUE), or a per assessable acre factor. A single-family residential lot is equivalent to one DUE factor. For other classifications of developed parcels, the DUE factor is calculated using the formula specified in the initial Engineers’ Report adopted by the City Council for that Zone.
Present Situation
None of the proposed FY 2026-27 assessments (Attachment B) exceed the allowed maximum annual assessment established in the original Engineer’s Report, which were approved by property owners through landowner ballots in accordance with Article XIII D, Section 6 of the California Constitution (commonly referred to as Proposition 218). Proposition 218, adopted in 1996, requires that property owners who are subject to an assessment have the opportunity to comment on each proposed annual assessment at a public hearing held by the City Council.
The Engineer’s Report for most zones includes the provision for an annual assessment in an amount equal to the greater of either 3.0 percent or the annual increase as shown in the Local Consumer Price Index for the San Francisco-Oakland-San Jose All Items, All Urban Users, as published by the Bureau of Labor Statistics for a similar period. For FY 2026-27, a 3.0 percent adjustment has been applied to the FY 2026-27 maximum allowable assessments.
Proposition 218 allows the City to approve the maximum allowable assessment while collecting only the amount needed based on projected expenses. By doing so, the City maintains the flexibility to collect the full approved amount if unexpected costs or emergencies arise, while still complying with Proposition 218 requirements.
The proposed budget for each zone in the District (Attachment C) includes engineering fees for preparing the Annual Engineer’s Report and tax rolls, attorneys’ fees, estimated maintenance costs, City of Stockton administrative costs, San Joaquin County fees for collecting the assessments, replacement reserve funding, and a contingency amount.
General maintenance activities include vector control, weed abatement, rodent control, slope dressing, mowing, ripping, grading the basin bottom as needed, trash and debris removal, structure cleaning, sediment removal, fence and access repairs, filter changes, device cleaning, and other maintenance tasks related to the special benefit.
The table below is a summary of the budget and per DUE factor to be assessed for each zone of the District for both FY 2025-26 and FY 2026-27, as well as the Proposed Operational Budgets and the Maximum Allowable Assessment amounts for FY 2026-27.
|
Zone No. |
Zone Name |
FY 2025-26 Rate Per DUE Factor |
FY 2026-27 Rate Per DUE Factor |
FY 2025-26 Assessment |
FY 2026-27 Assessment |
FY 2026-27 Proposed Operational Budget |
FY 2026-27 Maximum Allowable Assessment |
|
1 |
Riverbend Estates |
$43.90 |
$49.22 |
$28,608.50 |
$32,075.42 |
$32,075.42 |
$54,115.51 |
|
2A |
Cannery Park |
$8.04 |
$7.24 |
$7,716.68 |
$8,067.92 |
$8,067.92 |
$25,017.33 |
|
2B |
Cannery Park |
$26.60 |
$27.38 |
$28,592.32 |
$29,430.72 |
$29,430.72 |
$37,728.99 |
|
3 |
Simbad Estates |
$467.38 |
$481.38 |
$13,086.64 |
$13,478.64 |
$13,478.64 |
$30,468.20 |
|
4 |
Dama Estates |
$792.20 |
$819.66 |
$13,467.40 |
$13,934.22 |
$13,934.22 |
$39,767.93 |
|
5A |
Silver Springs & Gold Springs |
$132.46 |
$136.42 |
$35,703.26 |
$36,770.64 |
$36,770.64 |
$85,201.59 |
|
5B |
Silver Springs & Gold Springs |
$130.92 |
$134.84 |
$4,451.28 |
$4,584.56 |
$4,584.56 |
$6,585.12 |
|
6 |
Old Oak Estates |
$231.40 |
$238.34 |
$14,346.80 |
$14,777.08 |
$14,777.08 |
$25,534.08 |
|
7 |
Oakmore Meadows, Unit 3 |
$444.80 |
$458.14 |
$23,239.46 |
$23,936.44 |
$23,936.44 |
$28,383.71 |
|
8 |
Little John Creek North & South |
$418.68 |
$431.22 |
$26,376.84 |
$27,166.86 |
$27,166.86 |
$32,208.12 |
|
9 |
Malisa Manor |
$888.76 |
$968.44 |
$14,220.16 |
$15,495.04 |
$15,495.04 |
$33,327.84 |
|
10 |
Meadowlands Unit 2 |
$360.44 |
$511.82 |
$12,975.84 |
$18,425.52 |
$18,425.52 |
$41,992.20 |
|
11 |
Westlake Villages |
$4.54 |
$4.66 |
$16,144.68 |
$16,578.88 |
$16,578.88 |
$1,143,889.26 |
|
12 |
Moss Gardens |
$31.98 |
$32.92 |
$12,865.20 |
$13,243.36 |
$13,243.36 |
$89,931.93 |
|
131 |
ProLogis Park at Duck Creek |
$293.10* |
$301.96* |
$28,672.88 |
$29,532.94 |
$29,532.94 |
$87,731.63 |
|
14 |
Calaveras Estates IV |
$468.86 |
$482.92 |
$18,754.40 |
$19,316.80 |
$19,316.80 |
$21,436.80 |
|
15 |
BD Homes |
$929.56 |
$975.16 |
$12,084.28 |
$12,677.08 |
$12,677.08 |
$12,677.08 |
ProLogis Park at Duck Creek (Zone 13) is the only zone within the District with assessments calculated on an assessable acre basis. The assessments for ProLogis Park are spread in proportion to the adjusted area for each parcel in Zone 13. The current assessable acreage is $97.80. The maximum assessment is $87,731.63, resulting in a per acre maximum assessment of $897.05. The actual assessment is $29,532.94, resulting in an actual assessment per acre actual of $301.96.
The proposed assessments are to increase the zone assessment amounts by 3 percent when allowed by the original Engineer’s Report. All budgets in each zone are below the maximum allowable amount. Annual approval of the budget and Engineer’s Report is required by the Municipal Improvement Act of 1913 and the Stockton Improvement Code, Part V. A copy of the FY 2026-27 Annual Report is on file in the Office of the City Clerk and can also be found on the City of Stockton website at the following link: www.stocktonca.gov/stormwater <http://www.stocktonca.gov/stormwater>.
The estimated FY 2026-27 ending fund balances for the zones include the following:
|
Zone No. |
Zone Name |
FY 2026-27 Est. Fund Balance |
|
1 |
Riverbend Estates |
$249,612.29 |
|
2A |
Cannery Park |
$71,708.47 |
|
2B |
Cannery Park |
$268,226.17 |
|
3 |
Simbad Estates |
$125,317.65 |
|
4 |
Dama Estates |
$139,840.09 |
|
5A |
Silver Springs & Gold Springs |
$654,743.79 |
|
5B |
Silver Springs & Gold Springs |
$31,024.88 |
|
6 |
Old Oak Estates |
$123,125.98 |
|
7 |
Oakmore Meadows |
$241,738.98 |
|
8 |
Little John Creek North & South |
$297,586.04 |
|
9 |
Malisa Manor |
$152,633.60 |
|
10 |
Meadowlands |
$126,190.71 |
|
11 |
Westlake Villages |
$59,597.55 |
|
12 |
Moss Gardens |
$160,354.37 |
|
13 |
ProLogis Park at Duck Creek |
$245,565.57 |
|
14 |
Calaveras IV |
$58,060.52 |
|
15 |
BD Homes |
$15,689.97 |
This public hearing gives any interested person the opportunity to protest the proposed budget, the proposed method and proportion of assessment, the maximum annual assessment, or the actual FY 2026-27 assessment, either in writing or verbally, for each zone in the Annual Report. A majority protest occurs if more than 50 percent of the owners of assessable land in a zone submit a written or verbal protest.
Notice of the Public Hearing was published in The Record on May 8, 2026, and again on May 29, 2026, at least 10 days prior to the hearing date, in accordance with Proposition 218 noticing requirements.
By approving the proposed resolution, the City Council will approve and adopt the Annual Engineer’s Report for FY 2026-27, which includes the budget for each zone of the District and the Assessment Roll. This action will also confirm the levy and collection of the assessments set forth in the Annual Engineer’s Report for the District.
FINANCIAL SUMMARY
The City makes no financial contributions to the District. All fees, costs, and expenses are paid from the annual assessments levied and collected through the San Joaquin County tax roll. Proposition 218 restricts the use of the funds collected in each zone to the expenses related to maintaining and operating the specific stormwater quality treatment device(s) identified for that zone in the Engineer’s Report. Funds collected from property owners in a zone may only be used for work on the device(s) serving that zone, as the benefit is limited to those properties. District funds are kept separate and cannot be used to operate, maintain, or support the broader stormwater system or any other utility.
Administration and operational costs for the maintenance of the stormwater treatment basin in Cannery Park 2B will be proportionately split with the Stockton Stormwater Utility in FY 2026-27 as the basin is also used for flood control purposes.
This action has no impact on the General Fund or any other unrestricted funds.
Attachment A - District Zones Location Map
Attachment B - Summary of Zone Budgets
Attachment C - FY 26-27 Consolidated Storm Drainage Maintenance District Locations