Title
Adopt Two Resolutions to 1) Accept and Authorize the City Manager to Take All Actions in Conformance with the Engineer’s Report for Fiscal Year 2026-2027 for the Heron Bay Maintenance Assessment District, Assessment District No. 96-3; and 2) Order the Levy and Collection of Assessments Within the Heron Bay Maintenance Assessment District, Assessment District No. 96-3 for Fiscal Year 2026-2027
Staffreport
COUNCIL PRIORITY
• Infrastructure
• Sustainability & Resiliency
• Fiscal Sustainability and Transparency
SUMMARY
The Heron Bay Maintenance Assessment District provides funding for the on-going maintenance of public facilities at the Heron Bay development and adjacent Shoreline area. The Annual Engineer's Report for the District summarizes the expenses for the previous fiscal year and recommends assessment amounts for the upcoming fiscal year to continue funding the District. The proposed assessment for Fiscal Year 2026-2027 (FY 2027) is 100% of the maximum allowed by the District and an additional assessment to replenish the District’s reserve fund.
RECOMMENDATIONS
Staff recommend adopting Resolutions to:
• Accept the Annual Engineer's Report for FY 2027; and
• Order the levy and collection of assessments for the Heron Bay Maintenance Assessment District, Assessment District No. 96-3
BACKGROUND
At its regular meeting on June 17, 1996, the City Council adopted Resolution No. 96-118 establishing the Heron Bay Maintenance Assessment District (District) and subsequently approving a yearly assessment and levy. The District provides funding for the on-going maintenance of certain public facilities constructed as part of the Heron Bay development, including landscaping, storm water facilities, marshlands, and trail areas at the westerly end of Lewelling Boulevard.
Willdan Financial Services (Willdan) is currently retained as the Engineer-of-Work and has prepared the Annual Engineer's Report for FY 2027 as well as the associated Assessment Roll for FY 2027. A copy of the Engineer's Report is attached to the Resolution accepting the Engineer's Report and a copy of the Assessment Roll is attached to the Resolution ordering the levy and collection of assessments.
Analysis
Services to the District are provided by the City of San Leandro’s Public Works and Police Departments; the County of Alameda Public Works Agency; outside consultants; and outside contractors. The services cover maintenance of the facilities, monitoring of the marshland to confirm its health, feral animal removal, capital improvements, and administration. The cost of District services for FY 2027 is estimated at $516,846.78, which includes a planned capital improvement project to repair the shoreline along the District maintenance area. As part of the planned work, the City’s Recreation and Parks Department will purchase and install rock along the District shoreline to repair damage caused by the December 2024 storms, stabilize the shoreline trail, and prevent future erosion. Based on rising maintenance costs and aging facilities needing repairs Staff recommend that the regular assessment be set to the maximum authorized amount.
District rules require that a minimum of $300,000 reserve balance be maintained for capital improvement projects, including unexpected or emergency repairs, and budget overages. The District fund balance at the end of FY 2026 is estimated to be $285,165.08. Because the estimated reserve balance is less than the minimum required, Staff recommend adding an additional reserve fund assessment to replenish the fund and bring the reserve balance at the start of FY 2027 to $300,000.
Assessing properties to the maximum allowed by the District rules would fund the current maintenance and capital improvement needs of the District and reduce the impacts of rising costs.
Projected FY 2026 Ending Fund Balance $285,165.08
Additional FY 2027 Reserve Fund Assessment $14,834.12
Projected FY 2027 Beginning Fund Balance $299,999.20
FY 2027 Maximum Assessment $460,084.40
Interest Income FY 2027 estimate $2,851.65
District Costs FY 2027 estimate ($516,846.78)
Projected FY 2027 Reserve Fund Balance $246,088.47
The Annual Engineer's Report for the District includes the following:
• Description of improvements maintained using District Funds
• Budget based upon estimated costs for FY 2027
• Table of maximum annual assessments, method of apportionment, and calculation of proposed assessment
• Reference to the District’s Assessment Diagram
• Assessment Roll showing each property to be assessed and the amount of the assessment
The recommended maximum assessments and annual adjustments are as follows:
FY 2027 FY 2027
Housing Type and FY 2026 Estimated Annual Proposed
Number of Units Assessment Levy at Maximum (*) Assessment (*)
(451) Single-Family Units $404,601 $411,743 $375,990
(178) Motor Court Units $106,458 $108,337 $98,929
Total Assessments $511,059 $520,080 $474,919
(*) - Includes reserve fund assessment
Staff recommend individual assessments of $833.68 for single family units and $555.78 for motor court units, which equates to an approximately 7.1% decrease from the previous year.
Current Agency Policies
• Maintain and enhance San Leandro’s infrastructure
• Place San Leandro on a firm foundation for long-term fiscal sustainability
Previous Actions
• On July 17, 1996, by Resolution No. 96-118, the City Council established the Heron Bay Maintenance Assessment District
• On July 6, 2021, by Resolution Nos. 2021-107 and 2021-108, the City Council accepted the Engineer’s Report and ordered the levy and collection of the assessment for Fiscal Year 2021-2022
• On July 5, 2022, by Resolution Nos. 2022-114 and 2022-115, the City Council accepted the Engineer’s Report and ordered the levy and collection of the assessment for Fiscal Year 2022-2023
• On June 20, 2023, by Resolution Nos. 2023-090 and 2023-091, the City Council accepted the Engineer’s Report and ordered the levy and collection of the assessment for Fiscal Year 2023-2024
• On July 1, 2024, by Resolution Nos. 2024-079 and 2024-080, the City Council accepted the Engineer’s Report and ordered the levy and collection of the assessment for Fiscal Year 2024-2025
• On July 7, 2025, by Resolution Nos. 2025-088 and 2024-089, the City Council accepted the Engineer’s Report and ordered the levy and collection of the assessment for Fiscal Year 2025-2026
Financial Impacts
There is no financial impact to the FY 2027 General Fund budget as the proposed levy, collection of the annual assessments, and reserve funds support the activities of the Heron Bay Maintenance Assessment District.
All administrative and maintenance costs associated with the District are included in the proposed assessments.
Attachments
• Attachment A: Resolution to Accept the Engineer's Report for Fiscal Year 2026-2027 for the Heron Bay Maintenance Assessment District, Assessment District No. 96-3
• Attachment B: Resolution to Order the Levy and Collection of Assessments Within the Heron Bay Maintenance Assessment District, Assessment District No. 96-3 for Fiscal Year 2026-2027
• Attachment C: Engineer’s Report
• Attachment D: Preliminary Assessment Roll
PREPARED BY: Dane Rodgers, Senior Engineer, Public Works Department - Engineering Division