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Page 5 of 7 <br /> <br />Although this district’s fund balance for capital repair and replacement is $273,000, there are <br />several improvements for which replacement must be considered in the near term. The <br />improvements consist of extensive irrigation system replacement and plant replacement, <br />decorative fence repairs, and repair or replacement of other features. A portion of the irrigation <br />system that waters established plants has been turned off due to numerous breaks. <br /> <br />Several years ago, staff met with the Moller Ranch HOA to discuss increased assessments to <br />meet its repair/replacement capital improvement requirements. While support for an increase <br />in the assessment amount was not overwhelming, the HOA was interested in exploring the <br />cost-benefit aspects of an increase; further discussions with the Moller Ranch HOA are now <br />planned. Staff met with the HOA Board of Directors in May 2024 to discuss a Proposition 218- <br />compliant vote this coming fiscal year to address the projected funding shortfall of about <br />$21,500. Another $40,000 is necessary for a Proposition 218-compliant vote, totaling $61,500 <br />in projected reserve fund use. Staff estimates that the annual assessment will need to be <br />increased. <br /> <br />Summary of Districts <br />The table below lists (A) the number of parcels in each district, (B) the proposed annual <br />assessment per property for the upcoming fiscal year, (C) the total assessment amount for the <br />district for the upcoming fiscal year, and (D) the existing reserve/deficit for all five landscape <br />maintenance districts. <br /> <br /> <br /> <br />Increases to Assessments <br />Assessments in each of the districts will remain unchanged this fiscal year. As stated in this <br />and prior reports, assessments have not been increased in the LMDs since they were created. <br />Therefore, the current assessments are based on operation, maintenance, and capital <br />replacement costs which existed when the LMDs were created. The districts have operated <br />year-to-year through a combination of reducing maintenance, shutting down irrigation systems, <br />and depleting capital replacement reserves. This is due in large part to the complicated <br />process required to increase assessments created by the passage of Proposition 218 in 1996. <br />However, annual costs have continued to increase, and capital reserves have been depleted <br />Page 144 of 248