CITY COUNCIL REGULAR MEETING AGENDA PACKET

Page 5 of 8 capital repair and replacement costs. Annual assessments would need to be increased from $269.62 to about $360-$400 (an increase of about $8-$10 per month per property), and the inclusion of an inflation escalator will be needed. Additionally, $40,000 would be necessary in the future to conduct a Proposition 218-compliant vote. Landscape Maintenance District 1993-2, Bonde Ranch The Bonde Ranch subdivision (District 1993-2) has been in place for 30 years. Maintenance in this district includes entry features, open space areas, firebreaks, trees, shrubbery, groundcover and irrigation systems for the subdivision known as Tracts 6483 and 6518. The assessments are not enough to fund the maintenance of the district areas to the same level as in past years. This amount will fund the district’s reduced maintenance, county assessment fees, and City administration fees but will not fund capital repair or replacement costs. This district's fund balance for capital repair and replacement is $25,000. This amount is not enough for the significant improvements for which replacement must be considered in the near term. Despite shutting off the water due to existing leaks in the irrigation system, the fund balance for Bonde Ranch is insufficient for other basic maintenance tasks such as mulch replacement and more extensive fence repair, replacement, and painting. An increase in the annual assessment will be necessary to continue the maintenance standards of the district and replenish the reserve needed to fund eventual capital repair and replacement costs. In 2022, City staff initiated a discussion about increasing the assessments through a Proposition 218-compliant vote. However, the property owners at the neighborhood outreach meeting expressed strong opposition to increasing the assessment, so staff paused this effort. Capital improvements, maintenance, electricity, and water costs are projected to continue to increase. Weed management consumes over 40 percent of the LMD budget. To return the district to a similar level of maintenance as was intended when the Bonde Ranch LMD was approved, the annual assessments would need to be increased from $257.22 to about $620- $750 (an increase of about $30-$40 per month per property). The inclusion of an inflation escalator would be sought. Additionally, $40,000 would be needed to conduct a Proposition 218-compliant vote. Landscape Maintenance District 1994-1, Oak Tree Farm The Oak Tree Farm subdivision (District 1994-1) has been in place for 30 years. Maintenance in this district includes open space areas, entry features, decorative lighting, firebreaks, trees, shrubbery, groundcover and irrigation systems. The assessments are not enough to fund the maintenance of the district areas to the same level as in past years This amount is adequate to fund the reduced maintenance of the district, county assessment fees, City administration fees, and minor district improvements, but not enough to cover any required capital replacement costs or additional emergency repair services. City staff continues to work closely with the maintenance contractor to increase the efficiency of landscape maintenance operations and has shut off water due to leaks in the irrigation system. An increase in the annual assessment will be necessary in the future to continue the maintenance standards of past years. This district's fund balance for capital repair and replacement is $72,000. This amount is not enough for several improvements for which replacement must be considered in the near term. The improvements consist of extensive irrigation system replacement and plant replacement, Page 270 of 720