What steps has the City taken to address this issue?

In May 2023, a 5-year Financial Projections Analysis was completed that determined that the Victoria LLAD operating deficit was not self-correcting and would worsen over time. (View the Landscaping and Lighting Assessment Districts 5-year Financial Projections Analysis and Findings Report presented to the City Council May 23, 2023.) 

The City completed an independent third-party audit of the Victoria LLAD in September 2023. The top recommendation of the audit was to stabilize the financial health of the fund by going through a Proposition 218 process to adjust the assessment rates. 

Upon receiving these findings, the City proceeded to conduct further analysis and research with its partners Baker Tilly and Francisco and Associates. The City also initiated informational outreach efforts to educate the community on these findings and Prop 218 proceedings, such as a social media series and community workshops. 

View the September 19 Community Workshop PowerPoint presentation and recording below. 

View the October 3 special City Council meeting and agenda for the first reading of rates & overview from Baker Tilly. 

Oct. 3 Staff Report - Baker Tilly Evaluation

Attach 1 - Baker Tilley Assessment

In October 2023, City Council formally authorized Prop 218 proceedings and approved the Preliminary Engineer’s Report.

View the October 10 City Council meeting and view the agenda for the Preliminary Engineer’s Report and to hear City Council’s intention to levy and collect assessments for Fiscal Year 2024/25. 

Oct. 10 Staff Report - Victoria by the Bay LLAD

Attach 1 - FY 202425 VBTB LLAD Resolution of Initiation

Attach 2 - FY 202425 VBTB LLAD Resolution of Intention

Attach 3 - FY 202425 VBTB Preliminary Engineer's Report

The City continued its educational outreach throughout the fall of 2023 leading up to December's final Public Hearing and ballot count. 

View the November 13 Community Workshop PowerPoint presentation and recording below. 

On December 5, 2023 the City held a Public Hearing in which the Prop 218 increase was not approved. 

On April 23, 2024, an additional Engineering report was presented to City Council.

City Council then approved another round of Prop 218 proceedings.

The City has continued to conduct community outreach to educate residents on the matter.

The City distributed the door hanger below to Victoria by the Bay residents' homes on May 10.

On May 15, 2024, the City reached out to the Victoria by the Bay and Alexandria at Victoria HOA Board of Directors and Members via e-letter to facilitate Prop 218 communication and education.

View our May 21 Community Workshop PowerPoint presentation and recording below to learn about the mail balloting process, how to vote, potential service cuts and more. 

On June 25, 2024 the City held a Public Hearing in which the Prop 218 increase was not approved.

On March 11, 2025, City Council authorized final Proposition 218 proceedings to deliver notice and ballots to property owners within the Victoria by the Bay LLAD again to approve an assessment increase beginning in FY 2025/26 of $50 annually over a 10-year period ($500 total). On April 22, 2025, City Council declared its intention to levy and collect assessments for FY 2025/26. On May 8, 2025, notices and ballots were mailed to all affected property owners in the Victoria by the Bay LLAD, in accordance with Proposition 218. 

At the June 24, 2025 Public Hearing, the tabulated ballots concluded that the majority of property owners voted in favor of increasing the maximum assessment rates, passing the 2025 Prop 218 effort. 

At its July 22, 2025 meeting, Hercules City Council approved the Victoria by the Bay LLAD Engineer’s Report and adopted resolutions declaring the results of the ballot tabulation and confirming the Victoria by the Bay LLAD assessments. 

The levy of the increased assessments took effect beginning with FY 2025-26. Payment of the assessment for each parcel is made in the same manner and at the same time as payments are made for property taxes. All funds collected through the district will be placed in a special fund and will only be used for the purposes stated within the Engineer’s Report.