CITY COUNCIL REGULAR MEETING AGENDA PACKET

Page 6 of 8 decorative fence repairs, tree pruning, lighting replacement, and repair or replacement of other features. Capital improvements, maintenance, and electricity costs are projected to continue to increase. To return the district to a similar level of maintenance and to address the necessary wildland vegetation management as was intended when the Oak Tree Farm LMD was approved, the annual assessments would need to be increased from $465.75 to about $850-$950 (an increase of about $30-$40 per month per property). The inclusion of an inflation escalator would be sought and $40,000 would be required for a Proposition 218-compliant vote. Landscape Maintenance District 1995-1, Moller Ranch The Moller Ranch subdivision (District 1995-1) has been in place for 29 years. Maintenance in this district includes open space areas, entry features, lighting, firebreaks, trees, shrubbery, groundcover and irrigation systems. The assessments will be sufficient to fund the reduced maintenance level of the district including water and electrical costs, county assessment fees, City administration fees, and operating and maintenance costs, but is not enough to increase the capital repair or replacement reserve. Although this district’s fund balance for capital repair and replacement is $273,000, there are several improvements for which replacement must be considered in the near term. The improvements consist of extensive irrigation system replacement and plant replacement, decorative fence repairs, and repair or replacement of other features. A portion of the irrigation system that waters established plants has been turned off due to numerous breaks. Several years ago, staff met with the Moller Ranch HOA to discuss increased assessments to meet its repair/replacement capital improvement requirements. While support for an increase in the assessment amount was not overwhelming, the HOA was interested in exploring the cost-benefit aspects of an increase. Further discussions with the Moller Ranch HOA are now planned. Staff has a meeting scheduled with the HOA Board of Directors in May 2024 to discuss a Proposition 218-compliant vote in the upcoming fiscal year to address the funding shortfall projected to be about $21,500. Another $40,000 is necessary for a Proposition 218- compliant vote, totaling $61,500 in projected reserve fund use. Staff estimates that the annual assessment would need to be increased from $560.53 to approximately $700-$800 (an increase of about $10-$20 per month per property). In addition, an annual inflation escalator would be sought. Increases to Assessments City staff, in consultation with SCI Consulting Group which specializes in the formation of LMDs, previously began an analysis of potential Proposition 218 compliant votes to increase assessments for the two most underfunded LMDs: Windsor and Bonde Ranch. This effort was paused due to the Bonde Ranch residents’ opposition to the increase at the February 3, 2022, neighborhood outreach meeting. The voting process for the Windsor LMD was also paused based on the input from residents at the February 2, 2022, outreach meeting, and based on the HOA's aforementioned agreement with the City to take over the routine plant maintenance and water costs. For both of these LMDs, the irrigation water has already been turned off to save additional costs. Proposition 218-compliant efforts for Ponderosa and Moller Ranch will proceed in the upcoming fiscal year, as the City is still delivering water to their irrigation systems despite the need for repairs. Page 271 of 720