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

Page 8 of 11 restoration, major oak tree pruning, or emergency repair services. To address ongoing leaks, the irrigation system has been shut off, adversely affecting plant health. City staff continue to work with the maintenance contractor to maximize efficiency. Despite these efforts, an increase in the annual assessment will be necessary to restore previous service levels and maintain the district’s long-term sustainability. The district’s capital repair and replacement anticipated year-end fund balance is approximately $29,100; and is being used for necessary near-term improvements, including: • irrigation system replacement; • plant replacement; • decorative fence repair; • lighting replacement; and • extensive tree pruning. Staff held several meetings with property owners during FY 2025/26 to identify projects and establish priorities. In early 2026, staff implemented the first maintenance project, which included tree pruning and tree removal along Foothill Road as well as clearance pruning around street lights, at a cost of $11,520. A second project to repair and replace the ranch fence is expected to be completed before the end of the FY 2025/26 at a cost of $34,393. This fiscal year, maintenance, water, minor pruning, LED street light conversions, and electricity costs are projected at approximately $26,500 and incidental and administrative costs are projected to cost approximately $4,700. The funds are not sufficient for the next round of proposed improvements, and a $4,800 drawdown of the reserve is required. Total estimated capital needs over the next decade are approximately $400,000.   Landscape Maintenance District 1995-1 (Moller Ranch) LMD 1995-1, established in 1995, provides for the maintenance of open space areas, entry features, lighting, firebreaks, trees, shrubbery, groundcover, and irrigation systems within the Moller Ranch subdivision. The current annual assessment of $675.63 per parcel is sufficient to fund the district’s reduced level of maintenance, including water and electricity costs, County assessment fees, City administration fees, and general operations. However, this amount is not sufficient to build the capital repair and replacement reserve needed to address aging infrastructure and long-term capital improvements. The district’s capital repair and replacement anticipated year-end fund balance is approximately $268,100, but this is insufficient to cover several near-term improvements, including: • extensive irrigation system replacement; • plant and tree replacement; • decorative fence repairs; and • lighting and other feature replacements. Page 73 of 617