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City of Pleasanton <br />LighƟng & Landscape Maintenance District No. 1995-1, <br />Moller Ranch <br />Engineer’s Report <br /> <br />Page 9 <br /> <br />Based on research of the historical documents and in consultaƟon with their <br />consultant, SCI ConsulƟng Group, and an aƩorney that specializes in assessment <br />law, JarvisFay, the fiscal year 2025-26 assessments for District 1995-1 were <br />restored to the amount approved by the formaƟon documents for the Moller <br />Ranch LMD, as recorded with ResoluƟon 95-102, an amount of up to $1,000 with <br />an inflaƟon escalator based on the Consumer Price Index for the year. <br />Under ProposiƟon 218, a property owner vote is only required when these <br />assessments are increased, and an assessment is not increased if it is set at an <br />amount that is no more than the maximum amount iniƟally authorized when the <br />assessment district was created. (Cal. Const. Art. XIII D, § 5(b); Gov. Code § <br />53750(h)(2)(B).) As a first step toward a more sustainable assessment level, <br />assessments were restored last year, as approved by Resolu Ɵon 95-102 and <br />implemented with ResoluƟon 97-84 (the first assessment following the <br />implementaƟon of ProposiƟon 218), to $675.63 per parcel per year. The formaƟon <br />documents also authorize an annual escalator based on the Consumer Price Index <br />up to the $1,000 maximum; however, in light of the recent decision in Thacker v. <br />City of Fairfield, which has called into quesƟon the validity of applying formaƟon- <br />era inflaƟon escalators, the City has elected not to apply the CPI escalator. The <br />assessment rate therefore remains at $675.63 per parcel. With a total of 101 <br />parcels in the District (including two public parcels), fiscal year 2026-27 total <br />assessment revenue will be $68,238.63. <br />Over the years, operaƟonal costs and uƟlity costs have increased significantly. The <br />fiscal year 2026-27 assessment revenues are supplemented by a draw from the <br />District's reserve fund balance to cover the full cost of maintaining all common <br />areas, including water costs, county assessment fees, city administra Ɵon fees, <br />replacement of planƟngs, irrigaƟon systems, fencing, and other district <br />improvements. The fiscal year 2026-27 budget reflects the assessment rate held <br />flat at the prior-year level, with operaƟng costs in excess of assessment revenue <br />funded from the exisƟng reserve fund balance. <br />Page 256 of 617