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With the assessment of one city-owned parcel, the City will pay $465.75. Landscape Maintenance District 1995-1, Moller Ranch The Moller Ranch subdivision (District 1995-1) has been in place for 26 years. Maintenance in this district includes open space areas, entry features, lighting, firebreaks, trees, shrubbery, groundcover and irrigation systems. The assessments for the coming year for District 1995-1 (Moller Ranch) will remain at $570.06 per parcel, per year. With a total of 101 parcels in the district (including the city- owned Moller Ranch water tank parcel and a staging area for Pleasanton Ridge), this year's total assessment will be $57,557. This amount will be sufficient to fund the maintenance of the district including water and electrical costs, county assessment fees, City administration fees and operating and maintenance cost, but not enough to increase the capital repair or replacement reserve. Although the fund balance for capital repair and replacement is approximately $270,000 for this district, there are several improvements for which replacement must be considered in the near-term. The improvements consist of an extensive irrigation system replacement and plant replacement, decorative fence repairs, and repair or replacement of other features. Staff met with the Moller Ranch Homeowners Association to discuss increased assessments to meet their repair/replacement capital improvement requirements. While there is not overwhelming support for an increase in the assessment amount, the HOA is interested in exploring the cost and benefit aspects of an increase. With the assessment of two city-owned parcels, the City will pay $1,121.06 ($560.53 per parcel). Increases to Assessments Assessments in each of the districts will remain unchanged this fiscal year. As stated in this report and in previous reports, assessments have not been increased in the LMDs since they were created. Therefore, the current assessments are based upon operation and maintenance costs, and capital replacement costs, that existed at the time the LMDs were created. The districts have operated year-to-year through a combination of reducing maintenance, shutting down irrigation systems, and depleting capital replacement reserves. This is due in large part to the complicated process required to increase assessments created by the passage of Proposition 218 in 1996. However, annual costs have continued to increase, and capital reserves have been depleted to the point now that this operational strategy is no longer sustainable. The revenue in some districts, as detailed above, is no longer enough to cover the operational costs. This strategy also resulted in depleting the reserves needed for eventual capital replacement. City Staff, in consultation with SCI Consulting Group, a consultant that specializes in the formation of LMDs, began the analysis and Proposition 218 compliant voting procedure to increase assessments for the two most underfunded LMDs, Windsor and Bonde Page 7 of 8