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This Year's Proposed Assessments The annual assessments can be adjusted each year by the ENR Construction Cost Index for the San Francisco Bay Area. The current index allows for an increase of two percent. The allowed ENR adjustment is stated within each GHAD's original creation document and is therefore compliant with Proposition 218. The Engineer's Report for each GHAD concludes that funding is needed for special services within the GHAD in the coming year according to consultant -prepared monitoring reports. As such, staff recommends increasing the annual parcel assessment by two percent to fund these services. The table below lists (A) the number of parcels within each GHAD that are subject to assessment, (B) the proposed assessment amount for the coming year, (C) the projected total revenue, (D) the anticipated operational expenses, (E) the excess revenue to be deposited to reserve accounts, and (F) the total current fund reserve. The reserve assumes a significant repair of the hillside slopes will be needed once every ten years. These reserves can also be used for the evehtual replacement of slope stabilization infrastructure when necessary. Proposition 218 Compliance As noted above, the proposed assessments fund geologic monitoring and related maintenance services, which provide: (1) all lands included within a district shall be specially benefitted by construction proposed in a plan of control approved by the legislative body and (2) the assessments were previously approved by all property owners at the time the assessment was created. Since these criteria have been satisfied, the GHAD assessments can be increased by an amount not exceeding the ENR index without being subject to a Proposition 218 vote. DISCUSSION At the May 17, 2022, City Council meeting, the council, acting as the Board of Directors for the GHADs, adopted a resolution declaring an intention to order the cost of maintenance be assessed against the property owners within each of the GHADs for FY 2022/23. As required by each GHAD, the Board of Directors must levy an annual assessment on all parcels (including city -owned parcels) benefited by the GHAD. Page 3 of 4 Number of Proposed Projected Anticipated Deposit to Total Current GHAD Name Parcels Annual Revenue Operational Fund Fund (A) Assessment (C = A X B + Expenses Reserve ResFe) e (B) interest) (D) (E = D — C) Laurel Creek Estates 121 $416 $63,336 $38,855 $24,481 $1,008,901 Moller Ranch 100 $127 $14,400 $10,504 $3,896 $149,820 Lemoine Estates 12 $750 $10,400 $7,198 $3,202 $111,004 Oak Tree Farm 42 $341 $15,322 $11,196 $4,126 $115,521 Proposition 218 Compliance As noted above, the proposed assessments fund geologic monitoring and related maintenance services, which provide: (1) all lands included within a district shall be specially benefitted by construction proposed in a plan of control approved by the legislative body and (2) the assessments were previously approved by all property owners at the time the assessment was created. Since these criteria have been satisfied, the GHAD assessments can be increased by an amount not exceeding the ENR index without being subject to a Proposition 218 vote. DISCUSSION At the May 17, 2022, City Council meeting, the council, acting as the Board of Directors for the GHADs, adopted a resolution declaring an intention to order the cost of maintenance be assessed against the property owners within each of the GHADs for FY 2022/23. As required by each GHAD, the Board of Directors must levy an annual assessment on all parcels (including city -owned parcels) benefited by the GHAD. Page 3 of 4