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

Page 6 of 11 • sound wall repairs; • irrigation infrastructure; • tree pruning and removal;and • drainage maintenance, paving, furnishings, and other non-plant-related services. The HOA agreement is a positive step toward restoring financial balance; however, long-term sustainability will still require either an increase in the annual assessment via a future Proposition 218 vote or the HOA assuming additional maintenance responsibilities. The current assessment of $265.11 per parcel remains unchanged, and no increase is proposed at this time. Staff estimates, however, that the assessment would ultimately need to increase by approximately $400 per parcel, together with an annual inflation escalator, to support future district needs at the current level of HOA maintenance. If the HOA no longer pays for basic maintenance services and water, the assessment would need to increase to approximately $800 annually. Any increase above the current maximum would require a Proposition 218-compliant property owner ballot proceeding. The estimated cost of that process is approximately $36,000 and no funding is available in the reserve to cover the costs. In addition, Assembly Bill 1572 requires removal of nonfunctional turf by January 1, 2029. As a result, a portion of the district’s lawn areas will need to be replaced with low-water-use plantings or mulch. The cost of this work is estimated at a minimum of $25,000, and could be much larger depending on the extent of improvements. That cost is expected to impact the district in 2027/28. Combined with other long-term capital improvements and major maintenance costs, total projected expenses over the next ten years are estimated at approximately $700,000. Although no immediate assessment changes are proposed, staff believes future action will be necessary to: • increase annual assessments to a sustainable level; • add an inflation adjustment mechanism; • address state-mandated landscaping requirements; and • rebuild reserves to fund future capital repairs and system replacement. Without these actions, or the HOA assuming additional responsibilities, the district risks noncompliance with state mandates, further deterioration of its assets, and greater long-term costs. 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. Page 71 of 617