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Proposed Annual Total AnnualApprox. Existing LIVID Name Number of Assessment per Assessment Reserve/Deficit Parcels (A) Property(B) Amount for (D) District C 1984-1 Ponderosa 344 $ 16.90 $5,813.32* $83,000 —Del Prado 1993-1 Windsor 90 $269.62 $24,265.80* ($ 18,000) 1993-2 103 $257.22 $26,489.35* $ 19,000 Bonde Ranch 1994-1 42 $473.66 $19,885.81* $61,000 Oak Tree Farm 1995-1 101 $570.06 $57,557.00* $263,000 Moller Ranch *Adjusted for reduced City-parcel rates 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, maintenance, 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 thatthis operational strategy is no longer sustainable. The revenue in some districts, as detailed above, is no longer enough to coverthe operational costs. This strategy also resulted in depleting the reserves needed for eventual capital replacement. City staff, in consultation with SCI Consulting Group, a consultantthat specializes in the formation of LMDs, began the analysis and Proposition 218 compliantvoting procedure to increase assessments forthe two most underfunded LMDs, Windsorand Bonde Ranch, but the voting process was put on hold due to the Bonde Ranch residents' opposition to the increase at the February 3, 2022, neighborhood outreach meeting regarding the subject. Additionally, the voting process forthe Windsor LIVID was also put on hold based on the inputfrom residents atthe February 2, 2022, outreach meeting wherein the Windsor residents expressed the desire for a longer and more inclusive outreach process prior to holding the vote. City staff conducted further outreach with the property owners and HOA Board and the Board has submitted a letter of intent to take over the routine plant maintenance services and water costs starting in January 2024. The City will be working to determine maintenance expectations and appropriate maintenance standards for each district and will determine the appropriate reserve amountto cover eventual capital replacements. When complete, required assessment increases will be calculated. The goal for each LIVID with this effort is to fully understand the funding required to implement sustainable landscape maintenance program in Page 7 of 8