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Page 7 of 11 Without these steps, the district will be out of compliance with State mandates and risks further deterioration of its assets and the potential for greater long-term costs and community impact. Landscape Maintenance District 1993-2, Bonde Ranch Landscape Maintenance District 1993-2, established in 1993, provides for the maintenance of entry features, open space areas, firebreaks, trees, shrubbery, groundcover, and irrigation systems for the Bonde Ranch subdivision, encompassing Tracts 6483 and 6518. The current annual assessment of $252.91 per parcel is no longer sufficient to maintain the district areas to the same standard as in previous years. While the current revenue allows for reduced maintenance, payment of county assessment fees, and City administration fees, it does not fund capital repair or replacement costs necessary to preserve and restore key infrastructure. The capital repair and replacement reserve fund currently holds approximately $28,000, an amount insufficient to address significant near-term capital needs. These include: • irrigation system replacement • tree and shrub replacement • mulch replenishment • fence repair and painting • basic landscape rehabilitation. In recent years, water to the district has been shut off due to persistent irrigation system leaks, resulting in widespread decline of the landscape. Many trees and shrubs have died or are in poor condition due to lack of irrigation. To restore even minimal landscape quality, a functioning irrigation system will be required to support plant replacement and ongoing care. In 2022, staff initiated discussions regarding a Proposition 218-compliant property owner vote to increase assessments. However, strong opposition from property owners at a neighborhood outreach meeting resulted in the City pausing the process. Ongoing increases in capital improvements, electricity, water, and maintenance costs— including weed management, which now consumes approximately 40 percent of the annual district budget—continue to strain the district’s financial capacity. Current-year costs for basic maintenance, water, and electricity are projected to total approximately $24,200, while the Proposition 218 process is estimated at $36,000, resulting in a projected $22,000 draw on reserves to meet immediate needs. To move toward fiscal stability, staff and consultants are recommending a restoration of the assessment to the 1997 post-Proposition 218 level of $389.56 per parcel (or $396.18 per parcel including the 1.7% county fee). This restoration may be implemented without a Proposition 218 property owner vote and would provide temporary relief. However, based on projected needs, long-term sustainability will require a significant increase. Staff estimates the assessment must rise to approximately $800 per parcel annually with an annual inflation escalator to ensure ongoing solvency. A Proposition 218-compliant property owner vote will be required to implement this increase. Staff will use the current fiscal year to Page 219 of 864