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Staff met with the Moller Ranch Homeowners Association to discuss increased assessments to meet their repair/replacement capital improvement requirements. While support for an increase in the assessment amount is not overwhelming, 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). The table below lists (A) the number of parcels in each district, (B) the proposed annual assessment per property for the upcoming fiscal year, (C) the total assessment amount for the district for the upcoming fiscal year, and (D) the existing reserve/deficit for all five landscape maintenance districts. Increases to Assessments Assessments in each of the districts will remain unchanged this fiscal year. As stated in this report and 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 Page 6of7 Number of Proposed Annual Total AnnualApprox. Assessment Existing LIVID Name Parcels (A) Assessment per Amount for Reserve/(Deficit) Property g p y ( ) District C (D) 1984-1 Ponderosa — Del Prado 344 $16.90 $5,813.32 $83,000 1993-1 Windsor 90 $269.62 $24,265.80 ($19,000) 1993-2 Bonde Ranch 103 $257.22 $26,489.35 $18,000 1994-1 Oak Tree Farm 42 $473.66 $19,885.81 $54,000 1995-1 Moller Ranch 101 $570.06 $57,557 $263,000 Increases to Assessments Assessments in each of the districts will remain unchanged this fiscal year. As stated in this report and 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 Page 6of7