CITY COUNCIL REGULA MEETING AGENDA PACKET _Revised_ 6-2-26

Page 5 of 11 The district’s capital repair and replacement anticipated year-end fund balance is approximately $58,600. In addition, estimated capital needs over the next ten years total approximately $600,000, including irrigation system replacement, plant and tree replacements, pruning, and consultant services. The district faces an immediate annual funding shortfall for necessary pruning and irrigation improvements, with only approximately $7,200 available to address those needs and no funds available to replenish reserves. If the Proposition 218 property owner ballot proceeding does not pass, staff will need to implement additional cost-reduction measures, including permanent shutoff of portions of the irrigation system. This would lead to accelerated landscape deterioration, increased long-term repair costs, and increased liability exposure for the City. Staff believes the recommended actions are necessary to maintain service levels, protect community assets, and support the long-term sustainability of LMD 1984-1. • irrigation infrastructure; • tree pruning and removal; and • fence and gate repair and replacement. Landscape Maintenance District 1993-1, Windsor LMD 1993-1, established in 1993, provides for the maintenance of public landscaping within the Windsor subdivision. The maintenance scope includes masonry walls, trees, shrubbery, groundcover, irrigation systems, entry features, and common area drainage ditches. The district also funds water and electricity associated with irrigation. These improvements are located within Lot A and Lot C of the subdivision. The current annual assessment of $265.11 per parcel is no longer sufficient to maintain district improvements at prior service levels. Despite reductions in service, increased costs for water, maintenance, and repairs, combined with an aging irrigation system and maturing landscape, have depleted the district’s reserves. In recent years, multiple irrigation failures have caused substantial water loss, unusually high water bills, and costly emergency repairs; and tree and limb failures have required extensive pruning and removal work. Despite efforts to limit maintenance and an agreement under which the HOA pays the water bill and routine landscape maintenance costs, the district’s capital repair and replacement anticipated year-end fund balance is approximately $6,200 due to emergency irrigation repairs and necessary tree work. The majority of last year’s budget was used to address irrigation repairs, tree removals, and tree pruning. As of February 2024, the HOA entered into an agreement with the City to reduce district maintenance costs, and in FY 2025/26, that arrangement reduced costs by approximately $11,000. While the HOA’s assumption of these responsibilities has generated meaningful cost savings, the City remains responsible for maintaining other district improvements, including: Page 70 of 617