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PRELIMINARILY APPROVE THE 2026-27 STOCKTON CONSOLIDATED STORM DRAINAGE MAINTENANCE ASSESSMENT DISTRICT 2005-1 ANNUAL ENGINEER’S REPORT, THE PROPOSED FISCAL YEAR 2026-27 BUDGET, AND SET A PUBLIC HEARING FOR JUNE 9, 2026
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Preliminarily approve the Fiscal Year (FY) 2026-27 Annual Engineer’s Report for the Stockton Consolidated Storm Drainage Maintenance Assessment District 2005-1.
2. Preliminarily approve the FY 2026-27 proposed budgets for each zone.
3. Approve setting a Public Hearing for June 9, 2026.
4. Authorize the City Clerk to publish the notice of public hearing.
It is also recommended that the City Manager be authorized to take 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 to 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 (Annual Report) to identify budgets, boundary changes, and parcel assessments within each District. District budgets include engineering fees for the Annual Report and tax rolls; attorneys’ fees; maintenance costs for the devices; City administrative costs; County collection costs; replacement reserves; and contingencies. City administrative costs cover staff salaries 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.
The proposed assessments are to increase the zone assessment amounts by 3.0 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>.
If approved, this action will preliminarily approve the Annual Report and preliminarily approve the FY 2026-27 budget for each zone of the Consolidated Storm Drainage Maintenance District 2005-1 and set a Public Hearing date for June 9, 2026.
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 allowing 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.
On November 19, 2019, the City Council approved Motion 2019-11-19-1108 retaining Siegfried Engineering, Inc. of Stockton, California to prepare the annual Engineer’s Report. The FY 2025-26 Annual Report determines the assessments that are to be approved following a Public Hearing. If approved, the assessments will be added on the San Joaquin County (SJC) tax roll and collected with the SJC property taxes. These annual assessments provide funding for the inspection, operation, maintenance, repair, and replacement of the improvements in each zone and other associated administrative costs, including preparing the Annual Report and assessment roll. The Annual Report contains a budget for each zone. Attachment B provides a summary of the proposed FY 2026-27 operational budget and assessments for each district. Attachment C provides the address and location of each consolidated storm drainage maintenance district.
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. The DUE factor for other classifications of developed parcels is determined by a formula detailed in the initial Engineers’ Report for that zone approved by the City Council.
Present Situation
None of the proposed FY 2026-27 assessments exceed the allowed maximum annual assessment set in the original Engineer’s Reports, which were approved by landowner ballots following the requirements of California Constitution article XIII D, section 6, commonly referred to as “Proposition 218.” Proposition 218 was enacted in 1996 and accepted by the City Council as part of the formation and annexation proceedings. The law provides that property owners, subject to the assessment, have an opportunity to weigh in on the adoption of each proposed annual assessment via a public hearing held by the City Council.
The Engineer’s Report forming most zones included the provision for an annual escalator on the assessments in an amount equal to the greater of either 3.0 percent or the annual increase as shown in the Local Consumer Price Index (CPI) 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 increase has been applied to the FY 2026-27 maximum allowable assessments in accordance with the original Engineers Report that called the maximum to be increased by the greater of the CPI or 3.0 percent.
Proposition 218 allows flexibility to approve the maximum allowable assessment, if warranted based on estimated expenditures, or to levy a lesser amount if the estimated expenditures do not justify collecting the maximum. Approving the maximum allowable assessment while levying only the amount needed to cover projected expenses provides the flexibility to collect up to the authorized maximum in the event of unanticipated costs or emergencies and ensures compliance with the requirements of Proposition 218.
The proposed budget for each zone within the District includes engineering fees for the preparation of the Annual Report d tax rolls, attorneys’ fees, estimated cost of maintenance work, City of Stockton administrative costs, SJC costs to collect the assessments on the tax roll, replacement reserve costs, and a contingency amount. The general maintenance scope of work includes vector control, weed abatement, rodent control, slope dressing, mowing, ripping, grading of the basin bottom (as needed), trash and debris pick-up and removal, cleaning of the structures, fence and access repair, sediment removal, filter changes, device cleaning, and other maintenance associated with 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 |
|
13 |
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 maximum assessment per acre of $897.05. The actual assessment is $29,532.94 resulting in a per acre actual assessment of $301.96.
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 |
The FY 2026-27 Annual Report for the District is on file with the City Clerk and available for viewing by the public. The report contains detailed information on the budget for each zone, assessment amounts, and a complete description of improvements required to be maintained. A link to this report has been provided on the City website for access by the Mayor and each City Councilmember.
The required notice of public hearing will be published in The Record once, at least ten days before the public hearing.
FINANCIAL SUMMARY
The proposed Consolidated Storm Drainage Maintenance Assessment District budget
for FY 2026-27 is detailed in Attachment B. The accompanying resolution recommends preliminary approval of this budget with final approval with the Stockton FY 2026-27 Annual Budget to be presented to the City Council on June 9, 2026.
The City makes no financial contributions to the District. All fees, costs, and expenses incurred are paid from the proceeds of the annual assessments to be levied and collected on the San Joaquin County tax roll. Proposition 218 limits the use of the funds collected within the various zones of this District to pay only the expenses related to the maintenance and operation of the specific stormwater quality treatment device(s) detailed in the Engineer’s Report for each zone. The funds collected from the property owners of a zone can only be used for work on the device(s) in that zone as it imparts a special benefit restricted to the properties of that zone. District funds are segregated and cannot be used to operate, maintain, or support the activities of the stormwater system, or any other utility at large.
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