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Page 1 of 11 Item #12 CITY COUNCIL AGENDA REPORT June 17, 2025 Public Works - Engineering Division TITLE: ADOPT RESOLUTIONS APPROVING THE ENGINEER’S REPORTS FOR LANDSCAPE MAINTENANCE DISTRICTS 1984-1 (PONDEROSA-DEL PRADO), 1993-1 (WINDSOR), 1993-2 (BONDE RANCH), 1994-1 (OAK TREE FARM), AND 1995-1 (MOLLER RANCH), DECLARING THE CITY’S INTENTION TO ASSESS THE PROPERTIES FOR THE COST TO OPERATE AND MAINTAIN THE DISTRICTS; AND SETTING JULY 15, 2025, AT 7:00 P.M. AS THE DATE AND TIME FOR THE PUBLIC HEARING SUMMARY Landscape Maintenance Districts (LMDs) in the Ponderosa-Del Prado, Windsor, Bonde Ranch, Oak Tree Farm, and Moller Ranch subdivisions were established to maintain the common landscaped and lighted areas of each development in accordance with City-approved development plans. Over time, the level of maintenance provided in these LMDs has been reduced in order to keep assessment rates flat. As a result, current revenues are insufficient to maintain the improvements at their intended standard or address necessary maintenance and infrastructure replacement needs. Fund reserves have also been depleted due to rising maintenance and water costs while assessment revenues have remained unchanged since they were last reduced in 2000. The Engineer’s Reports determine the annual assessments to be levied on property owners within each district to cover costs associated with administration, electricity, water, landscape maintenance, irrigation, and infrastructure replacement. The annual Engineer’s Reports for the LMDs in the Ponderosa-Del Prado, Windsor, Bonde Ranch, Oak Tree Farm, and Moller Ranch subdivisions have been completed for Fiscal Year 2025/26. Under Proposition 218 (“The Right to Vote on Taxes Act”), any increase in assessments above the originally approved maximum requires voter approval. Following consultation with a Proposition 218-specialized attorney and assessment consultant, staff recommends a two-step approach: 1. Restore Assessment Levels: As a first step, staff recommends restoring assessments to their original levels following the passage of Proposition 218. This means returning assessments to the 1997–98 levels for Bonde Ranch, Oak Tree Farm, and Moller Ranch; and to the 1988 level for the Ponderosa LMD, which is the earliest recorded assessment available. The Windsor LMD assessment will remain unchanged, as it has not been modified since its formation. 2. Comprehensive Assessment Review: In the second step, staff recommends engaging outside consultants to conduct a comprehensive analysis, consistent with Proposition 218 requirements, during FY 2025/26 and work with the residents to determine the assessment levels necessary to restore and sustain maintenance standards as outlined Page 213 of 864