RES 2025047 - Laserfiche WebLink

1 Introduction Executive Summary The Moller Ranch Landscape Maintenance District, 1995-1, was created in 1995 as a means to fund the maintenance of the designated landscaped and open space areas, and common area features for the 101 parcel Moller Ranch subdivision. The district was formed prior to the passage of Proposition 218, the "Right to Vote on Taxes Act" which requires property owner approval to impose or increase assessments. When the district was formed, an inflation escalator was built into the assessment with a maximum assessment at the time of $1,000 per parcel annually. However, the inflation escalator has not been applied and assessments have remained the same since they were last lowered in FY 1999-2000 to $560.53. The equivalent of the 2000 assessment of $560.53 in today's dollars, based on the Consumer Price Index for California, is $1,137.53. The reduced assessment has led to a severe decline in the level of maintenance, a lack of sufficient funding for capital improvement projects, and forced the city to shut down a portion of the irrigation system. The lack of irrigation has led to an even further decline of the landscape. The district is now out of compliance with the level of maintenance required as part of the development approval, which exposes the district and the property owners to increased liability. Over the years, staff has had discussions with the HOA about a potential increase in assessment rates to achieve a sustainable maintenance level but has yet to actually increase assessments. It wasn't until the city conducted research this year that staff determined that an assessment of up to $1,000 with an inflation escalator was approved at the time that the district was formed. Staff is recommending that the assessment be restored to the 1997 level of $675.63, the first year after Proposition 218 went into effect. The restoration of the post -Proposition 218 assessment amount is only a first step though, as maintenance costs are estimated to be closer to $1,000 annually to properly maintain the district and complete the necessary improvements, such as tree pruning, irrigation replacement, turf conversions, and lighting replacement and upgrades. The budget for this fiscal year will require drawing down the reserve by around $24,000 due to the consultant costs, estimated at approximately $9,000, and planned maintenance improvements, estimated at $30,000, but future stepped assessment increases are expected to place the district in a fiscally sustainable position. Overview The City of Pleasanton ("City") is located in Alameda County, and covers an area of 24.3 square miles, with over 24,500 assessor parcels, and approximately 80,000 residents. The City currently has five Landscape Maintenance Districts ("Districts") that provide services to a combined total of 680 parcels: