Attach 10 - 5-year Projection Findings - F&A — Hercules City Council, October 8, 2024

Landscaping and Lighting
Assessment Districts
5-year Financial Projections
Analysis and Findings Report
October 8, 2024
Attachment 10
5-YEAR FINANCIAL PROJECTIONS ANALYSIS AND FINDINGS REPORT TABLE OF CONTENTS T

ABLE OF CONTENTS
P
age No.

E
xecutive Summary ................................................................................................. 1 S
ection I - LLAD No. 83-2 ...................................................................................... I-1 5-year Financial Projections, Trend Graph, and Capital Replacement Analysis:

Benefit Zone 1 (Hercules by the Bay)....................................................... I-2 Benefit Zone 2 (Foxboro) ......................................................................... I-6 Benefit Zone 3&4 (Gems/Birds) ............................................................. I-10 Benefit Zone 5A (Business Park) ........................................................... I-14 Benefit Zone 5B (Commercial) ............................................................... I-18 Benefit Zone 5C (Misc. Parcels) ............................................................. I-22 Benefit Zone 6 (Village Parkway) ........................................................... I-25 Benefit Zone 7 (Heights) ........................................................................ I-29 Benefit Zone 8 (Trees and Flowers) ....................................................... I-33 Benefit Zone 9 (Birds and Country Run) ................................................ I-37 Benefit Zone 10 (Citywide Parks) ........................................................... I-41 S
ection II – LLAD No. 2002-1 (Victoria by the Bay) ............................................ II-1 5-year Financial Projections, Trend Graph, and Capital Replacement Analysis S
ection III – LLAD No. 2002-2 (Promenade) ....................................................... III-1 5-year Financial Projections, Trend Graph, and Capital Replacement Analysis S
ection IV – LLAD No. 2004-1 (Baywood) .......................................................... IV-1 5-year Financial Projections, Trend Graph, and Capital Replacement Analysis S
ection V – LLAD No. 2005-1 (Bayside) .............................................................. V-1 5-year Financial Projections, Trend Graph, and Capital Replacement Analysis 5-YEAR FINANCIAL PROJECTIONS ANALYSIS AND FINDINGS REPORT INTRODUCTION

1 EXECUTIVE SUMMARY

The City of Hercules annually levies and collects special assessments to maintain certain improvements within the City’s five Landscape and Lighting Assessment Districts (LLADs). Each LLAD provides continued maintenance, servicing, administration, and operations of various landscape and lighting improvements and other facilities benefiting parcels within each respective LLAD. Each property is assessed only for the cost of the improvements from which benefit is received.

The five LLADs in Hercules provide for well -maintained, attractive landscaping and serviceable streetlighting along public streets as well as fire breaks adjacent to open space. They also provide for the upkeep of playgrounds, fields, park furniture, tennis courts, graffiti abatement, lighting, landscaping, water features, and trails in City parks. The expenses associated with the maintenance of these LLADs include labor, material, equipment, utilities, repairs, and administration.

In the spring of 2023, Francisco & Associates (F&A) prepared a 5-year financial projection for each of the eleven Benefit Zones within LLAD No. 83 -2 and LLAD Nos. 2002 -1 (Victoria by the Bay LLAD), 2002-2 (Promenade LLAD), 2004-1 (Baywood LLAD), and 2005-1 (Bayside LLAD). The 5- year financial projections provided City staff with information to evaluate the financial health of the LLADs by providing a comprehensive picture that assisted the City in its decision-making process, including the need and timing for conducting Proposition 218 proceedings to increase LLAD assessments. The City conducted Proposition 218 proceedings for the Victoria by the Bay LLAD in the fall of 2023 and again during the first half of 2024 to address an annual and cumulative operating deficit. A significant majority of Victoria by the Bay LLAD property owners opposed an increase to their annual assessments both times, and therefore the funding shortfall still needs to be addressed. As a next step, t he City has requested F&A assist with updating the 5- year financial projections for the LLADs using the approved Fiscal Year 2024- 25 budgets with a 30% reduction to City personnel and overhead administration costs as a baseline . Below are the key assumptions used to project the budgets from the Fiscal Year 2024-25 baseline through Fiscal Year 2028-29.

• Assessment Revenue - A 3% annual increase for all Benefit Zones within LLAD No. 83-2 and LLAD Nos. 2002- 1, 2002-2, 2004-1, and 2005-1, except for Benefit Zones 2 and 5B within LLAD No. 83-2 because they currently generate sufficient revenue to cover annual operating and maintenance expenses while also building reserves for future capital improvements and replacement projects. • City Personnel and Overhead Administration - A 3% annual increase in City personnel and overhead administration costs to support operational needs. • Landscape Maintenance - A 2% annual increase in the Landscape, Open Space, and Associated Repairs expenditure line item to ensure ongoing landscape 5-YEAR FINANCIAL PROJECTIONS ANALYSIS AND FINDINGS REPORT LLAD NO. 83-2 2 maintenance. An automatic 2% annual increase has typically been included in City landscape contracts.
• Electricity and Streetlighting - A 5% annual increase in the Electricity and Streetlight Repairs expenditure line item, primarily to address rising Pacific Gas & Electric energy rates.
• Water Costs - A 5% annual increase in the Landscape and Facilities Water expenditure line item to account for anticipated East Bay Municipal Utility District rate increases.

Pl
ease note the 5-year financial projections in this report includes an analysis to replace existing improvements maintained by each respective LLAD and costs for programmed 5-year Capital Improvement Projects anticipated to be funded by each LLAD , but does not account for the replacement of existing park improvements associated with LLAD No. 83-2 Benefit Zone 10 (Citywide Parks) nor projects in the Parks Master Plan. These park improvements are intended to be funded with grants and other funding sources th at become available, to the extent possible.

In s
hort, the operating budgets for LLAD No. 83- 2, Baywood LLAD, and Bayside LLAD are trending positively over the 5-year financial projections, in large part due to successful Proposition 218 proceedings conducted between F iscal Year 2017-18 to F iscal Year 2021-22 approving increases to LLAD assessments for six (6) Benefit Zones of LLAD No. 83-2. Although incorporating a 30% reduction to City personnel and overhead administration improved the 5-year financial projections for the Victoria by the Bay LLAD and Promenade LLAD, these two LLADs are expected to continue experiencing annual operating deficits primarily due to the need for increased irrigation watering, East Bay Municipal Utility District water rate increases, and additional work associated with regular tree pruning.
5-YEAR FINANCIAL PROJECTIONS ANALYSIS AND FINDINGS REPORT SECTION I I-1
S

ECTION I
L
LAD NO. 83-2
5 -YEAR FINANCIAL PROJECTIONS, TREND GRAPH,
AND C

APITAL REPLACEMENT ANALYSIS

5-YEAR FINANCIAL PROJECTIONS ANALYSIS AND FINDINGS REPORT LLAD NO. 83-2 I-2
BE
NEFIT ZONE 1

HERCULES BY THE BAY
• 5-YEAR FINANCIAL PROJECTIONS
• TREND GRAPH
• CAPITAL REPLACEMENT ANALYSIS
REVENUES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Assessment Rates per EDU (Single-Family Home Equivalent)* $146 $150 $155 $159 $164 Assessments $102,795 $105,879 $109,055 $112,327 $115,697 General Benefit Contribution $801 $844 $1,129 $934 $980 TOTAL REVENUES: $103,596 $106,723 $110,184 $113,261 $116,676 ESTIMATED ANNUAL EXPENDITURES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Personnel** $14,085 $14,508 $14,943 $15,391 $15,853
Transfer for Arterials/Major Roads Landscape and Lighting Maintenance $28,840 $34,085 $31,227 $32,469 $33,799 Landscaping, Open Space, and Associated Repairs $9,000 $9,180 $9,364 $9,551 $9,742 Tree Trimming $0 $0 $12,000 $0 $0
Electricity and Streetlight Repairs $10,000 $10,500 $11,100 $11,700 $12,300 Landscape and Facilities Water $5,000 $6,000 $7,000 $8,000 $9,000 Assessment Engineering Cost $1,000 $1,030 $1,061 $1,093 $1,126 Incidental / Direct Admin Cost** $0 $0 $0 $0 $0
County Fees $976 $976 $976 $976 $976
TOTAL ANNUAL EXPENDITURES: $68,901 $76,279 $87,671 $79,180 $82,795 CAPITAL IMPROVEMENT PROJECTS (CIP) FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Tree Replacement $7,500 $0 $0 $0 $0
Street Light Pole Replacement (10-year loan repayment) $20,259 $20,259 $20,259 $20,259 $20,259 TOTAL CIP EXPENDITURES: $27,759 $20,259 $20,259 $20,259 $20,259 TOTAL EXPENDITURES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 TOTAL ANNUAL AND CIP EXPENDITURES: $96,660 $96,538 $107,930 $99,439 $103,054 FUND BALANCE INFORMATION FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Beginning Balance - July 1 ($51,190) ($44,254) ($34,070) ($31,816) ($17,994) Reserve Collection Increase/(Decrease) $6,936 $10,185 $2,254 $13,822 $13,622 Ending Balance - Projected June 30 ($44,254) ($34,070) ($31,816) ($17,994) ($4,372) Recommended Operating Reserves $48,330 $48,269 $53,965 $49,720 $51,527 Available Operating Reserves ($44,254) ($34,070) ($31,816) ($17,994) ($4,372) Target Capital Reserves $190,333 $196,043 $201,925 $207,982 $214,222 Available Capital Reserves $0 $0 $0 $0 $0
*EDU = Equivalent Dwelling Unit. The Cottage Ln, Coventry, and Olympian Hills developments within Zone 1 have a lower maximum allowable assessment rate ($87.23 per EDU for FY 2024-25) because their interior streetlighting is owned and maintained by an HOA. **Incorporates a 30% reduction to City Personnel and Incidental/Direct Admin costs commencing with Fiscal Year 2024-25.

LANDSCAPING AND LIGHTING DISTRICT NO. 1983-2
(ZONE NO. 1 - HERCULES BY THE BAY)
5-YEAR PROJECTION THROUGH FISCAL YEAR 2028-29
($44,254)
($34,070)
($31,816)
($17,994)
($4,372)
($50,000)
($40,000)
($30,000)
($20,000)
($10,000)
$0
FY 2024-25
(June 30, 2025)
FY 2025-26
(June 30, 2026)
FY 2026-27
(June 30, 2027)
FY 2027-28
(June 30, 2028)
FY 2028-29
(June 30, 2029)
Landscaping and Lighting Assessment District No. 83-2
Zone 1 (Hercules by the Bay)
Projected Ending Fund Balance Trend
Prior to Fiscal Year 2019-20, Zone 1 (Hercules by the Bay) property owners approved an increase to their LLAD assessment to finance the replacement of deteriorated wooden pole streetlights in their neighborhood and gradually eliminate the Zone's fund deficit. Zone 1 is now on pace to fully repay the loan for the wooden pole streetlight replacements and is expected to generate sufficient revenue to pay annual operating and maintenance expenditures and to begin building reserves in Fiscal Year 2029-30.

The trend graph below assumes 3% annual assessment increases through Fiscal Year 2028-29.

Railroad Park - LLAD 83-2 (Zone 1)
Inventory Item Quantity
Unit of
Measure
Current Unit Cost
(In 2024 dollars)
Total Cost
(In 2024 dollars)
Useful Life
(yrs)
Remaining Life
(yrs)
Recommended Capital Reserve*
at the end of Useful Life
Target Capital
Reserve for FY 2024-25
Benches - Steel 4 EA $1,000 $4,000 30 0 $4,000 $4,000
Miscellaneous Irrigation System Replacement 12,800 SF $0.05 $640 1 0 $640 $640 Irrigation Controller 1 EA $15,000 $15,000 15 0 $15,000 $15,000 Picnic Tables - Wood with steel base 3 EA $1,000 $3,000 25 0 $3,000 $3,000 Playground (Ages 5-12) - Little Tykes 1 EA $40,000 $40,000 20 1 $41,200 $39,140 Pathway - Concrete Repair 3,500 SF $10 $3,500 50 19 $6,137 $3,805 Swing Set - Landscape Structures 2 EA $4,000 $8,000 20 0 $8,000 $8,000 Trash Cans - Concrete with Metal Tops 2 EA $750 $1,500 30 0 $1,500 $1,500 *Assumes 3% annual inflation. $75,085
Landscaping & Lighting - LLAD 83-2 (Zone 1)
Inventory Item Quantity
Unit of
Measure
Current Unit Cost
(In 2024 dollars)
Total Cost
(In 2024 dollars)
Useful Life
(yrs)
Remaining Life
(yrs)
Recommended Capital Reserve*
at the end of Useful Life
Target Capital
Reserve for FY 2024-25
Miscellaneous Median Irrigation System Replacement 5,000 SF $0.10 $500 1 0 $500.00 $500.00 Decorative Pavers 1,500 SF $5.00 $7,500 30 0 $7,500.00 $7,500.00 Miscellaneous Cul-de-Sac Irrigation System Replacement 4,500 SF $0.10 $450 1 0 $450.00 $450.00 Irrigation Controller 2 EA $15,000 $30,000 15 0 $30,000.00 $30,000.00 Street Light - Single Head 119 EA $4,000 $476,000 30 28 $1,089,053.57 $72,603.57 Street Light - Double Head 5 EA $5,500 $27,500 30 28 $62,918.01 $4,194.53 *Assumes 3% annual inflation. Totals $541,950.00 $115,248.11 FY 2024-25 Total Target Capital Reserve for Zone 1: $190,333.21 LLAD No. 83-2 (ZONE 1 - HERCULES BY THE BAY) CAPITAL REPLACEMENT ANALYSIS 1 5-YEAR FINANCIAL PROJECTIONS ANALYSIS AND FINDINGS REPORT LLAD NO. 83-2 I-6
BE
NEFIT ZONE 2

FOXBORO
• 5-YEAR FINANCIAL PROJECTIONS
• TREND GRAPH
• CAPITAL REPLACEMENT ANALYSIS
REVENUES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Assessment Rates per EDU (Single-Family Home Equivalent)* $130 $130 $130 $130 $130 Assessments $82,960 $82,960 $82,960 $82,960 $82,960
General Benefit Contribution $514 $546 $583 $620 $657
TOTAL REVENUES: $83,475 $83,507 $83,544 $83,581 $83,618 ESTIMATED ANNUAL EXPENDITURES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Personnel** $14,085 $14,508 $14,943 $15,391 $15,853
Transfer for Arterials/Major Roads Landscape and Lighting Maintenance $21,728 $25,679 $23,526 $24,462 $25,464 Landscaping, Open Space, and Associated Repairs $3,300 $3,366 $3,433 $3,502 $3,572 Tree Trimming $0 $0 $0 $0 $0
Electricity and Streetlight Repairs $4,400 $4,700 $5,000 $5,300 $5,600 Landscape and Facilities Water $2,170 $3,000 $4,000 $5,000 $6,000 Assessment Engineering Cost $1,000 $1,000 $1,030 $1,061 $1,093 Incidental / Direct Admin Cost** $0 $0 $0 $0 $0
County Fees $750 $750 $750 $750 $750
TOTAL ANNUAL EXPENDITURES: $47,433 $53,003 $52,683 $55,466 $58,332 CAPITAL IMPROVEMENT PROJECTS (CIP) FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Tree Replacement $0 $0 $0 $0 $0
Other Capital Improvement Projects $0 $0 $0 $0 $0
TOTAL CIP EXPENDITURES: $0 $0 $0 $0 $0
TOTAL EXPENDITURES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 TOTAL ANNUAL AND CIP EXPENDITURES: $47,433 $53,003 $52,683 $55,466 $58,332 FUND BALANCE INFORMATION FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Beginning Balance - July 1 $103,843 $139,885 $170,388 $201,249 $229,364 Reserve Collection Increase/(Decrease) $36,041 $30,504 $30,861 $28,114 $25,286 Ending Balance - Projected June 30 $139,885 $170,388 $201,249 $229,364 $254,650 Recommended Operating Reserves $23,717 $26,502 $26,341 $27,733 $29,166 Available Operating Reserves $23,717 $26,502 $26,341 $27,733 $29,166 Target Capital Reserves $40,962 $42,191 $43,457 $44,760 $46,103 Available Capital Reserves $116,168 $143,887 $174,908 $201,631 $225,484 *EDU = Equivalent Dwelling Unit. Assumes rates will not be increased for FY 2024-25 through 2028-29. **Incorporates a 30% reduction to City Personnel and Incidental/Direct Admin costs commencing with Fiscal Year 2024-25.

LANDSCAPING AND LIGHTING DISTRICT NO. 1983-2
(ZONE NO. 2 FOXBORO)
5-YEAR PROJECTION THROUGH FISCAL YEAR 2028-29
$139,885
$170,388
$201,249
$229,364
$254,650
$0
$75,000
$150,000
$225,000
$300,000
FY 2024-25
(June 30, 2025)
FY 2025-26
(June 30, 2026)
FY 2026-27
(June 30, 2027)
FY 2027-28
(June 30, 2028)
FY 2028-29
(June 30, 2029)
Landscaping and Lighting Assessment District No. 83-2
Zone 2 (Foxboro)
Projected Ending Fund Balance Trend
Zone 2 (Foxboro) is generating sufficient assessment revenue to pay for annual operating and maintenance expenditures and is in strong position to continue building reserves for future capital improvement and replacement projects.

The trend graph below assumes the Zone 2 assessment rates will not be increased through Fiscal Year 2028-29.

GEMS/BIRDS
• 5-YEAR FINANCIAL PROJECTIONS
• TREND GRAPH
• CAPITAL REPLACEMENT ANALYSIS
REVENUES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Assessment Rates per EDU (Single-Family Home Equivalent)* $141 $145 $150 $154 $159 Assessments $119,915 $123,513 $127,218 $131,035 $134,966 General Benefit Contribution $763 $823 $885 $947 $1,011 TOTAL REVENUES: $120,678 $124,335 $128,103 $131,981 $135,977 ESTIMATED ANNUAL EXPENDITURES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Personnel** $7,468 $7,692 $7,922 $8,160 $8,405
Transfer for Arterials/Major Roads Landscape and Lighting Maintenance $29,508 $34,875 $31,951 $33,221 $34,582 Landscaping, Open Space, and Associated Repairs $6,600 $6,732 $6,867 $7,004 $7,144 Tree Trimming $0 $0 $0 $0 $0
Electricity and Streetlight Repairs $12,100 $12,800 $13,500 $14,200 $15,000 Landscape and Facilities Water $9,765 $11,000 $12,000 $13,000 $14,000 Assessment Engineering Cost $1,000 $1,030 $1,061 $1,093 $1,126 Incidental / Direct Admin Cost** $314 $1,000 $2,000 $3,000 $4,000 County Fees $883 $883 $883 $883 $883
TOTAL ANNUAL EXPENDITURES: $67,638 $76,012 $76,184 $80,561 $85,140 CAPITAL IMPROVEMENT PROJECTS (CIP) FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Tree Replacement $0 $0 $0 $0 $0
Street Light Pole Replacement (10-year loan repayment) $42,192 $42,192 $42,192 $42,192 $42,192 TOTAL CIP EXPENDITURES: $42,192 $42,192 $42,192 $42,192 $42,192 TOTAL EXPENDITURES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 TOTAL ANNUAL AND CIP EXPENDITURES: $109,830 $118,204 $118,376 $122,753 $127,332 FUND BALANCE INFORMATION FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Beginning Balance - July 1 $75,797 $86,645 $92,776 $102,503 $111,731 Reserve Collection Increase/(Decrease) $10,848 $6,132 $9,727 $9,228 $8,645 Ending Balance - Projected June 30 $86,645 $92,776 $102,503 $111,731 $120,377 Recommended Operating Reserves $54,915 $59,102 $59,188 $61,377 $63,666 Available Operating Reserves $54,915 $59,102 $59,188 $61,377 $63,666 Target Capital Reserves $125,784 $129,557 $133,444 $137,447 $141,571 Available Capital Reserves $31,730 $33,675 $43,315 $50,355 $56,711 *EDU = Equivalent Dwelling Unit.
**Incorporates a 30% reduction to City Personnel and Incidental/Direct Admin costs commencing with Fiscal Year 2024-25.

LANDSCAPING AND LIGHTING DISTRICT NO. 1983-2
(ZONE NO. 3 & 4 - THE GEMS/BIRDS)
5-YEAR PROJECTION THROUGH FISCAL YEAR 2028-29
$86,645 $92,776
$102,503 $111,731
$120,377
$0
$35,000
$70,000
$105,000
$140,000
FY 2024-25
(June 30, 2025)
FY 2025-26
(June 30, 2026)
FY 2026-27
(June 30, 2027)
FY 2027-28
(June 30, 2028)
FY 2028-29
(June 30, 2029)
Landscaping and Lighting Assessment District No. 83-2
Zone 3 & 4 (The Gems/Birds)
Projected Ending Fund Balance Trend
Prior to Fiscal Year 2021-22, Zone 3&4 (The Gems/Birds) property owners approved an increase to their LLAD assessment to finance the replacement of deteriorated wooden pole streetlights in their neighborhood. Zone 3&4 is on pace to fully repay the loan for the wooden pole streetlight replacements and is in strong position to build reserves for future capital improvement and replacement projects.

The trend graph below assumes 3% annual assessment increases through Fiscal Year 2028-29.

BUSINESS PARK
• 5-YEAR FINANCIAL PROJECTIONS
• TREND GRAPH
• CAPITAL REPLACEMENT ANALYSIS
REVENUES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Assessment Rates per EDU (Single-Family Home Equivalent)* $150 $154 $159 $164 $169 Assessments $95,626 $98,495 $101,450 $104,493 $107,628
General Benefit Contribution $1,315 $1,400 $1,480 $1,559 $1,639 TOTAL REVENUES: $96,941 $99,895 $102,930 $106,053 $109,268 ESTIMATED ANNUAL EXPENDITURES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Personnel** $8,659 $8,919 $9,186 $9,462 $9,746
Transfer for Arterials/Major Roads Landscape and Lighting Maintenance $21,678 $25,621 $23,473 $24,406 $25,406 Landscaping, Open Space, and Associated Repairs $13,200 $13,464 $13,733 $14,008 $14,288 Tree Trimming $0 $0 $0 $0 $0
Electricity and Streetlight Repairs $6,000 $6,300 $6,700 $7,100 $7,500 Landscape and Facilities Water $32,550 $35,000 $37,000 $39,000 $41,000 Assessment Engineering Cost $1,000 $1,030 $1,061 $1,093 $1,126 Incidental / Direct Admin Cost** $4,015 $5,000 $6,000 $7,000 $8,000 County Fees $310 $310 $310 $310 $310
TOTAL ANNUAL EXPENDITURES: $87,412 $95,644 $97,463 $102,379 $107,375 CAPITAL IMPROVEMENT PROJECTS (CIP) FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Tree Replacement $0 $0 $0 $0 $0
Other Capital Improvement Projects $0 $0 $0 $0 $0
TOTAL CIP EXPENDITURES: $0 $0 $0 $0 $0
TOTAL EXPENDITURES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 TOTAL ANNUAL AND CIP EXPENDITURES: $87,412 $95,644 $97,463 $102,379 $107,375 FUND BALANCE INFORMATION FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Beginning Balance - July 1 $106,952 $116,481 $120,733 $126,199 $129,874 Reserve Collection Increase/(Decrease) $9,529 $4,252 $5,467 $3,674 $1,893 Ending Balance - Projected June 30 $116,481 $120,733 $126,199 $129,874 $131,766 Recommended Operating Reserves $43,706 $47,822 $48,732 $51,189 $53,687 Available Operating Reserves $43,706 $47,822 $48,732 $51,189 $53,687 Target Capital Reserves $57,488 $59,212 $60,989 $62,819 $64,703 Available Capital Reserves $72,775 $72,911 $77,468 $78,684 $78,079 *EDU = Equivalent Dwelling Unit.
**Incorporates a 30% reduction to City Personnel and Incidental/Direct Admin costs commencing with Fiscal Year 2024-25.

LANDSCAPING AND LIGHTING DISTRICT NO. 1983-2
(ZONE NO. 5A - BUSINESS PARK)
5-YEAR PROJECTION THROUGH FISCAL YEAR 2028-29
$116,481
$120,733
$126,199
$129,874
$131,766
$100,000
$110,000
$120,000
$130,000
$140,000
FY 2024-25
(June 30, 2025)
FY 2025-26
(June 30, 2026)
FY 2026-27
(June 30, 2027)
FY 2027-28
(June 30, 2028)
FY 2028-29
(June 30, 2029)
Landscaping and Lighting Assessment District No. 83-2
Zone 5A (Business Park)
Projected Ending Fund Balance Trend
Zone 5A (Business Park) is generating sufficient assessment revenue to pay for annual operating and maintenance expenditures and is in strong position to continue building reserves for future capital improvement and replacement projects.

The trend graph below assumes 3% annual assessment increases through Fiscal Year 2028-29.

COMMERCIAL
• 5-YEAR FINANCIAL PROJECTIONS
• TREND GRAPH
• CAPITAL REPLACEMENT ANALYSIS
REVENUES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Assessment Rates per EDU (Single-Family Home Equivalent)* $140 $140 $140 $140 $140 Assessments $49,160 $49,160 $49,160 $49,160 $49,160
General Benefit Contribution $258 $274 $303 $331 $360
TOTAL REVENUES: $49,418 $49,434 $49,463 $49,491 $49,520 ESTIMATED ANNUAL EXPENDITURES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Personnel** $8,659 $8,919 $9,186 $9,462 $9,746
Transfer for Arterials/Major Roads Landscape and Lighting Maintenance $11,933 $14,103 $12,921 $13,435 $13,985 Landscaping, Open Space, and Associated Repairs $1,100 $1,122 $1,144 $1,167 $1,191 Tree Trimming $0 $0 $0 $0 $0
Electricity and Streetlight Repairs $300 $400 $500 $600 $700 Landscape and Facilities Water $0 $0 $0 $0 $0
Assessment Engineering Cost $1,000 $1,000 $1,030 $1,061 $1,093 Incidental / Direct Admin Cost** $1,551 $2,000 $3,000 $4,000 $5,000 County Fees $269 $269 $269 $269 $269
TOTAL ANNUAL EXPENDITURES: $24,812 $27,813 $28,050 $29,994 $31,983 CAPITAL IMPROVEMENT PROJECTS (CIP) FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Tree Replacement $0 $0 $0 $0 $0
Other Capital Improvement Projects $0 $0 $0 $0 $0
TOTAL CIP EXPENDITURES: $0 $0 $0 $0 $0
TOTAL EXPENDITURES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 TOTAL ANNUAL AND CIP EXPENDITURES: $24,812 $27,813 $28,050 $29,994 $31,983 FUND BALANCE INFORMATION FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Beginning Balance - July 1 $229,334 $253,940 $275,561 $296,973 $316,471 Reserve Collection Increase/(Decrease) $24,606 $21,621 $21,412 $19,498 $17,537 Ending Balance - Projected June 30 $253,940 $275,561 $296,973 $316,471 $334,008 Recommended Operating Reserves $12,406 $13,907 $14,025 $14,997 $15,991 Available Operating Reserves $12,406 $13,907 $14,025 $14,997 $15,991 Target Capital Reserves $2,689 $2,769 $2,853 $2,938 $3,026 Available Capital Reserves $241,534 $261,655 $282,948 $301,474 $318,017 *EDU = Equivalent Dwelling Unit. Assumes rates will not be increased for FY 2024-25 through 2028-29. **Incorporates a 30% reduction to City Personnel and Incidental/Direct Admin costs commencing with Fiscal Year 2024-25.

LANDSCAPING AND LIGHTING DISTRICT NO. 1983-2
(ZONE NO. 5B - COMMERCIAL)
5-YEAR PROJECTION THROUGH FISCAL YEAR 2028-29
$253,940
$275,561
$296,973 $316,471
$334,008
$0
$100,000
$200,000
$300,000
$400,000
FY 2024-25
(June 30, 2025)
FY 2025-26
(June 30, 2026)
FY 2026-27
(June 30, 2027)
FY 2027-28
(June 30, 2028)
FY 2028-29
(June 30, 2029)
Landscaping and Lighting Assessment District No. 83-2
Zone 5B (Commercial)
Projected Ending Fund Balance Trend
Zone 5B (Commercial) is generating sufficient assessment revenue to pay for annual operating and maintenance expenditures and is in strong position to continue building reserves for future capital improvement and replacement projects.

The trend graph below assumes the Zone 5B assessment rates will not be increased through Fiscal Year 2028-29.

Inventory Item Quantity
Unit of
Measure
Current Unit Cost
(In 2024 dollars)
Total Cost
(In 2024 dollars)
Useful Life
(yrs)
Remaining Life
(yrs)
Recommended Capital Reserve*
at the end of Useful Life
Target Capital
Reserve for FY 2024-25
Miscellaneous Roadside Irrigation System Replacement 9,000 SF $0.05 $450 1 0 $450 $450 Miscellaneous Median Irrigation System Replacement 3,300 SF $0.10 $330 1 0 $330 $330 Medians - Concrete Repair 1,000 SF $10 $1,000 50 9 $1,305 $1,070 Street Light - Double Head 1 EA $5,500 $5,500 30 28 $12,584 $839 *Assumes 3% annual cost increase. Totals $7,280 $2,689
FY 2024-25 Total Target Capital Reserve for Zone 5B: $2,689 LLAD No. 83-2 (ZONE 5B - COMMERCIAL PARCELS) CAPITAL REPLACEMENT ANALYSIS 1 5-YEAR FINANCIAL PROJECTIONS ANALYSIS AND FINDINGS REPORT LLAD NO. 83-2 I-22
BE
NEFIT ZONE 5C
MISC. PARCELS
• 5-YEAR FINANCIAL PROJECTIONS
• TREND GRAPH
REVENUES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Assessment Rates per EDU (Single-Family Home Equivalent)* $69 $71 $73 $75 $77 Assessments $31,378 $32,319 $33,289 $34,288 $35,316
General Benefit Contribution $145 $166 $191 $216 $242
TOTAL REVENUES: $31,524 $32,485 $33,480 $34,504 $35,558 ESTIMATED ANNUAL EXPENDITURES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Personnel** $4,330 $4,459 $4,593 $4,731 $4,873
Transfer for Arterials/Major Roads Landscape and Lighting Maintenance $15,514 $18,335 $16,798 $17,466 $18,181 Landscaping, Open Space, and Associated Repairs $0 $0 $0 $0 $0 Tree Trimming $0 $0 $0 $0 $0
Electricity and Streetlight Repairs $400 $500 $600 $700 $800 Landscape and Facilities Water $0 $0 $0 $0 $0
Assessment Engineering Cost $1,000 $1,030 $1,061 $1,093 $1,126 Incidental / Direct Admin Cost** $1,247 $2,000 $3,000 $4,000 $5,000 County Fees $292 $292 $292 $292 $292
TOTAL ANNUAL EXPENDITURES: $22,783 $26,616 $26,344 $28,281 $30,271 CAPITAL IMPROVEMENT PROJECTS (CIP) FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Tree Replacement $0 $0 $0 $0 $0
Other Capital Improvement Projects $0 $0 $0 $0 $0
TOTAL CIP EXPENDITURES: $0 $0 $0 $0 $0
TOTAL EXPENDITURES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 TOTAL ANNUAL AND CIP EXPENDITURES: $22,783 $26,616 $26,344 $28,281 $30,271 FUND BALANCE INFORMATION FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Beginning Balance - July 1 ($7,751) $990 $6,859 $13,995 $20,218 Reserve Collection Increase/(Decrease) $8,742 $5,869 $7,136 $6,223 $5,287 Ending Balance - Projected June 30 $990 $6,859 $13,995 $20,218 $25,505 Recommended Operating Reserves $11,391 $13,308 $13,172 $14,141 $15,136 Available Operating Reserves $990 $6,859 $13,172 $14,141 $15,136 Target Capital Reserves*** $0 $0 $0 $0 $0
Available Capital Reserves $0 $0 $824 $6,078 $10,369
*EDU = Equivalent Dwelling Unit.
**Incorporates a 30% reduction to City Personnel and Incidental/Direct Admin costs commencing with Fiscal Year 2024-25. ***There are no local improvements associated with Benefit Zone 5C and therefore there is no Capital Replacement Analysis required for this Zone. Zone 5C generates revenue to pay for its share of Arterial Roadway landscaping and streetlighting improvements.

LANDSCAPING AND LIGHTING DISTRICT NO. 1983-2
(ZONE 5C - MISC. PARCELS)
5-YEAR PROJECTION THROUGH FISCAL YEAR 2028-29
$990 $6,859
$13,995
$20,218
$25,505
$0
$8,000
$16,000
$24,000
$32,000
FY 2024-25
(June 30, 2025)
FY 2025-26
(June 30, 2026)
FY 2026-27
(June 30, 2027)
FY 2027-28
(June 30, 2028)
FY 2028-29
(June 30, 2029)
Landscaping and Lighting Assessment District No. 83-2
Zone 5C (Misc. Parcels)
Projected Ending Fund Balance Trend
Prior to Fiscal Year 2017-18, Zone 5C (Misc. Parcels) property owners approved an increase to their LLAD assessment to eliminate the Zone's annual operating and maintenance deficit and cumulative fund deficit. Zone 5C is now generating sufficient revenue to pay annual operating and maintenance expenditures and is to begin building reserves in Fiscal Year 2024-25.

The trend graph below assumes 3% annual assessment increases through Fiscal Year 2028-29. 5-YEAR FINANCIAL PROJECTIONS ANALYSIS AND FINDINGS REPORT LLAD NO. 83-2 I-25
BE
NEFIT ZONE 6

VILLAGE PARKWAY
• 5-YEAR FINANCIAL PROJECTIONS
• TREND GRAPH
• CAPITAL REPLACEMENT ANALYSIS
REVENUES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Assessment Rates per EDU (Single-Family Home Equivalent)* $120 $124 $127 $131 $135 Assessments $99,147 $102,121 $105,185 $108,340 $111,590 General Benefit Contribution $499 $528 $803 $600 $637
TOTAL REVENUES: $99,645 $102,649 $105,988 $108,940 $112,227 ESTIMATED ANNUAL EXPENDITURES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Personnel** $10,903 $11,230 $11,567 $11,914 $12,272
Transfer for Arterials/Major Roads Landscape and Lighting Maintenance $25,811 $30,505 $27,948 $29,059 $30,249 Landscaping, Open Space, and Associated Repairs $3,300 $3,366 $3,433 $3,502 $3,572 Tree Trimming $0 $0 $12,000 $0 $0
Electricity and Streetlight Repairs $5,500 $5,800 $6,100 $6,500 $6,900 Landscape and Facilities Water $3,255 $4,000 $5,000 $6,000 $7,000 Assessment Engineering Cost $1,000 $1,030 $1,061 $1,093 $1,126 Incidental / Direct Admin Cost** $0 $0 $0 $0 $0
County Fees $982 $982 $982 $982 $982
TOTAL ANNUAL EXPENDITURES: $50,751 $56,914 $68,091 $59,050 $62,100 CAPITAL IMPROVEMENT PROJECTS (CIP) FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Tree Replacement $0 $0 $0 $0 $0
Street Light Pole Replacement (10-year loan repayment) $17,637 $17,637 $17,637 $17,637 $17,637 TOTAL CIP EXPENDITURES: $17,637 $17,637 $17,637 $17,637 $17,637 TOTAL EXPENDITURES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 TOTAL ANNUAL AND CIP EXPENDITURES: $68,388 $74,551 $85,728 $76,687 $79,737 FUND BALANCE INFORMATION FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Beginning Balance - July 1 ($119,457) ($88,200) ($60,102) ($39,842) ($7,589) Reserve Collection Increase/(Decrease) $31,257 $28,098 $20,260 $32,253 $32,490 Ending Balance - Projected June 30 ($88,200) ($60,102) ($39,842) ($7,589) $24,901 Recommended Operating Reserves $34,194 $37,275 $42,864 $38,343 $39,869 Available Operating Reserves ($88,200) ($60,102) ($39,842) ($7,589) $24,901 Target Capital Reserves $72,183 $74,348 $76,579 $78,876 $81,242 Available Capital Reserves $0 $0 $0 $0 $0
*EDU = Equivalent Dwelling Unit. The Westwood Duet development within Zone 6 has a higher maximum allowable assessment rate ($198.19 per EDU for FY 2024-25) because their interior streetlighting is owned and maintained by the City. **Incorporates a 30% reduction to City Personnel and Incidental/Direct Admin costs commencing with Fiscal Year 2024-25.

LANDSCAPING AND LIGHTING DISTRICT NO. 1983-2
(ZONE NO. 6 - VILLAGE PARKWAY)
5-YEAR PROJECTION THROUGH FISCAL YEAR 2028-29
($88,200)
($60,102)
($39,842)
($7,589)
$24,901
($120,000)
($80,000)
($40,000)
$0
$40,000
FY 2024-25
(June 30, 2025)
FY 2025-26
(June 30, 2026)
FY 2026-27
(June 30, 2027)
FY 2027-28
(June 30, 2028)
FY 2028-29
(June 30, 2029)
Landscaping and Lighting Assessment District No. 83-2
Zone 6 (Village Parkway)
Projected Ending Fund Balance Trend
Prior to Fiscal Year 2021-22, Zone 6 (Village Parkway) property owners approved an increase to their LLAD assessment to finance the replacement of deteriorated wooden pole streetlights in their neighborhood, restore maintenance service levels, and gradually eliminate the Zone's cumulative fund deficit. Zone 6 is on pace to fully repay the loan for the wooden pole streetlight replacements and is expected to fully decrease the fund deficit by Fiscal Year 2028-29.

The trend graph below assumes 3% annual assessment increases through Fiscal Year 2028-29.

HEIGHTS
• 5-YEAR FINANCIAL PROJECTIONS
• TREND GRAPH
• CAPITAL REPLACEMENT ANALYSIS
REVENUES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Assessment Rates per EDU (Single-Family Home Equivalent)* $152 $156 $161 $166 $171 Assessments $122,261 $125,928 $129,706 $133,597 $137,605 General Benefit Contribution $691 $718 $745 $773 $803
TOTAL REVENUES: $122,951 $126,646 $130,451 $134,370 $138,408 ESTIMATED ANNUAL EXPENDITURES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Personnel** $15,938 $16,416 $16,909 $17,416 $17,939
Transfer for Arterials/Major Roads Landscape and Lighting Maintenance $33,369 $39,438 $36,131 $37,568 $39,107 Landscaping, Open Space, and Associated Repairs $2,200 $2,244 $2,289 $2,335 $2,381 Tree Trimming $0 $0 $0 $0 $0
Electricity and Streetlight Repairs $14,300 $15,100 $15,900 $16,700 $17,600 Landscape and Facilities Water $0 $0 $0 $0 $0
Assessment Engineering Cost $1,000 $1,030 $1,061 $1,093 $1,126 Incidental / Direct Admin Cost** $0 $0 $0 $0 $0
County Fees $1,102 $1,102 $1,102 $1,102 $1,102
TOTAL ANNUAL EXPENDITURES: $67,910 $75,331 $73,392 $76,214 $79,254 CAPITAL IMPROVEMENT PROJECTS (CIP) FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Tree Replacement $0 $0 $0 $0 $0
Street Light Pole Replacement (10-year loan repayment) $33,867 $33,867 $33,867 $33,867 $33,867 TOTAL CIP EXPENDITURES: $33,867 $33,867 $33,867 $33,867 $33,867 TOTAL EXPENDITURES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 TOTAL ANNUAL AND CIP EXPENDITURES: $101,777 $109,198 $107,259 $110,081 $113,121 FUND BALANCE INFORMATION FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Beginning Balance - July 1 $82,614 $103,789 $121,238 $144,430 $168,720 Reserve Collection Increase/(Decrease) $21,175 $17,449 $23,192 $24,290 $25,287 Ending Balance - Projected June 30 $103,789 $121,238 $144,430 $168,720 $194,007 Recommended Operating Reserves $50,888 $54,599 $53,630 $55,040 $56,561 Available Operating Reserves $50,888 $54,599 $53,630 $55,040 $56,561 Target Capital Reserves $79,315 $81,694 $84,145 $86,669 $89,270 Available Capital Reserves $52,901 $66,639 $90,801 $113,680 $137,446 *EDU = Equivalent Dwelling Unit. The Bay Pointe, Bravo, and Caprice developments within Zone 7 have a lower maximum allowable assessment rate ($88.10 per EDU for FY 2024-25) because their interior streetlighting is owned and maintained by an HOA. **Incorporates a 30% reduction to City Personnel and Incidental/Direct Admin costs commencing with Fiscal Year 2024-25.

LANDSCAPING AND LIGHTING DISTRICT NO. 1983-2
(ZONE NO. 7 - HEIGHTS)
5-YEAR PROJECTION THROUGH FISCAL YEAR 2028-29
$103,789
$121,238
$144,430
$168,720
$194,007
$0
$50,000
$100,000
$150,000
$200,000
$250,000
FY 2024-25
(June 30, 2025)
FY 2025-26
(June 30, 2026)
FY 2026-27
(June 30, 2027)
FY 2027-28
(June 30, 2028)
FY 2028-29
(June 30, 2029)
Landscaping and Lighting Assessment District No. 83-2
Zone 7 (Heights)
Projected Ending Fund Balance Trend
Prior to Fiscal Year 2021-22, Zone 7 (Heights) property owners approved an increase to their LLAD assessment to finance the replacement of deteriorated wooden pole streetlights in their neighborhood. Zone 7 is on pace to fully repay the loan for the wooden pole streetlight replacements and is in strong position to build reserves for future capital improvement and replacement projects.

The trend graph below assumes 3% annual assessment increases through Fiscal Year 2028-29.

Inventory Item Quantity
Unit of
Measure
Current Unit Cost
(In 2024 dollars)
Total Cost
(In 2024 dollars)
Useful Life
(yrs)
Remaining Life
(yrs)
Recommended Capital Reserve*
at the end of Useful Life
Target Capital
Reserve for FY 2024-25
Street Light - Single Head 130 EA $4,000 $520,000 30 28 $1,189,722 $79,315 *Assumes 3% annual cost increase. Totals $520,000.00 $79,315 FY 2024-25 Total Target Capital Reserve for Zone 7: $79,315 LLAD No. 83-2 (ZONE 7 - HEIGHTS) CAPITAL REPLACEMENT ANALYSIS 1 5-YEAR FINANCIAL PROJECTIONS ANALYSIS AND FINDINGS REPORT LLAD NO. 83-2 I-33
BE
NEFIT ZONE 8

TREES AND FLOWERS
• 5-YEAR FINANCIAL PROJECTIONS
• TREND GRAPH
• CAPITAL REPLACEMENT ANALYSIS
REVENUES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Assessment Rates per EDU (Single-Family Home Equivalent)* $128 $132 $136 $140 $145 Assessments $205,630 $211,799 $218,153 $224,697 $231,438 General Benefit Contribution $2,320 $2,429 $2,535 $2,644 $2,758 TOTAL REVENUES: $207,950 $214,227 $220,688 $227,342 $234,196 ESTIMATED ANNUAL EXPENDITURES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Personnel** $15,938 $16,416 $16,909 $17,416 $17,939
Transfer for Arterials/Major Roads Landscape and Lighting Maintenance $54,450 $64,353 $58,957 $61,302 $63,813 Landscaping, Open Space, and Associated Repairs $29,700 $30,294 $30,900 $31,518 $32,148 Tree Trimming $0 $0 $0 $0 $0
Electricity and Streetlight Repairs $59,400 $62,400 $65,600 $68,900 $72,400 Landscape and Facilities Water $8,680 $10,000 $11,000 $12,000 $13,000 Assessment Engineering Cost $1,000 $1,030 $1,061 $1,093 $1,126 Incidental / Direct Admin Cost** $0 $0 $0 $0 $0
County Fees $1,295 $1,295 $1,295 $1,295 $1,295
TOTAL ANNUAL EXPENDITURES: $170,464 $185,789 $185,722 $193,524 $201,720 CAPITAL IMPROVEMENT PROJECTS (CIP) FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Tree Replacement $0 $0 $0 $0 $0
Other Capital Improvement Projects $0 $0 $0 $0 $0
TOTAL CIP EXPENDITURES: $0 $0 $0 $0 $0
TOTAL EXPENDITURES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 TOTAL ANNUAL AND CIP EXPENDITURES: $170,464 $185,789 $185,722 $193,524 $201,720 FUND BALANCE INFORMATION FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Beginning Balance - July 1 $294,063 $331,550 $359,988 $394,954 $428,772 Reserve Collection Increase/(Decrease) $37,486 $28,439 $34,966 $33,818 $32,476 Ending Balance - Projected June 30 $331,550 $359,988 $394,954 $428,772 $461,248 Recommended Operating Reserves $85,232 $92,894 $92,861 $96,762 $100,860 Available Operating Reserves $85,232 $92,894 $92,861 $96,762 $100,860 Target Capital Reserves $198,045 $203,986 $210,106 $216,409 $222,902 Available Capital Reserves $246,318 $267,094 $302,093 $332,010 $360,388 *EDU = Equivalent Dwelling Unit.
**Incorporates a 30% reduction to City Personnel and Incidental/Direct Admin costs commencing with Fiscal Year 2024-25.

LANDSCAPING AND LIGHTING DISTRICT NO. 1983-2
(ZONE NO. 8 - TREES AND FLOWERS)
5-YEAR PROJECTION THROUGH FISCAL YEAR 2028-29
$331,550
$359,988
$394,954 $428,7
72 $461,248
$0
$100,000
$200,000
$300,000
$400,000
$500,000
FY 2024-25
(June 30, 2025)
FY 2025-26
(June 30, 2026)
FY 2026-27
(June 30, 2027)
FY 2027-28
(June 30, 2028)
FY 2028-29
(June 30, 2029)
Landscaping and Lighting Assessment District No. 83-2
Zone 8 (Trees and Flowers)
Projected Ending Fund Balance Trend
Zone 8 (Trees and Flowers) is generating sufficient assessment revenue to pay for annual operating and maintenance expenditures and is in strong position to continue building reserves for future capital improvement and replacement projects.

The trend graph below assumes 3% annual assessment increases through Fiscal Year 2028-29.

Beechnut Park - LLAD 83-2 (Zone 8)
Inventory Item Quantity
Unit of
Measure
Current Unit Cost
(In 2024 dollars)
Total Cost
(In 2024 dollars)
Useful Life
(yrs)
Remaining Life
(yrs)
Recommended Capital Reserve*
at the end of Useful Life
Target Capital
Reserve for FY 2024-25
New Beechnut Mini Park 1 EA $250,000 $250,000 30 30 $606,815.62 $40,454.37 *Assumed 3% annual cost increase. Totals $250,000.00 $40,454.37 Landscaping & Lighting - LLAD 83-2 (Zone 8)
Inventory Item Quantity
Unit of
Measure
Current Unit Cost
(In 2024 dollars)
Total Cost
(In 2024 dollars)
Useful Life
(yrs)
Remaining Life
(yrs)
Recommended Capital Reserve*
at the end of Useful Life
Target Capital
Reserve for FY 2024-25
Irrigation Controller 6 EA $15,000 $90,000 15 0 $90,000 $90,000 Miscellaneous Cul-de-Sac Irrigation System Replacement 31,200 SF $0.10 $3,120 1 0 $3,120 $3,120 Cul-de-Sac - Concrete Repair 31,200 SF $10 $31,200 50 9 $40,709 $33,381 Miscellaneous Median Irrigation System Replacement 3,350 SF $0.10 $335 1 0 $335 $335 Medians - Concrete Repair 3,350 SF $10 $3,350 50 9 $4,371 $3,584 Miscellaneous Median Irrigation System Replacement 4,450 SF $0.10 $445 1 0 $445 $445 Medians - Concrete Repair 4,450 SF $10 $4,450 50 9 $5,806 $4,761 Street Light - Single Head 36 EA $4,000 $144,000 30 28 $329,462 $21,964 *Assumes 3% annual cost increase. Totals $276,900 $157,591 FY 2024-25 Total Target Capital Reserve for Zone 8: $198,045 LLAD No. 83-2 (ZONE 8 - TREES AND FLOWERS) CAPITAL REPLACEMENT ANALYSIS 1 5-YEAR FINANCIAL PROJECTIONS ANALYSIS AND FINDINGS REPORT LLAD NO. 83-2 I-37
BE
NEFIT ZONE 9

BIRDS AND COUNTRY RUN
• 5-YEAR FINANCIAL PROJECTIONS
• TREND GRAPH
• CAPITAL REPLACEMENT ANALYSIS
REVENUES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Assessment Rates per EDU (Single-Family Home Equivalent)* $113 $117 $120 $124 $128 Assessments $96,231 $99,118 $102,092 $105,155 $108,309
General Benefit Contribution $1,112 $1,174 $1,241 $1,310 $1,382 TOTAL REVENUES: $97,344 $100,292 $103,333 $106,465 $109,691 ESTIMATED ANNUAL EXPENDITURES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Personnel** $14,123 $14,546 $14,983 $15,432 $15,895
Transfer for Arterials/Major Roads Landscape and Lighting Maintenance $28,831 $34,075 $31,218 $32,459 $33,789 Landscaping, Open Space, and Associated Repairs $4,400 $4,488 $4,578 $4,669 $4,763 Tree Trimming $0 $0 $0 $0 $0
Electricity and Streetlight Repairs $33,000 $34,700 $36,500 $38,400 $40,400 Landscape and Facilities Water $2,170 $3,000 $4,000 $5,000 $6,000 Assessment Engineering Cost $1,000 $1,030 $1,061 $1,093 $1,126 Incidental / Direct Admin Cost** $0 $0 $0 $0 $0
County Fees $925 $925 $925 $925 $925
TOTAL ANNUAL EXPENDITURES: $84,449 $92,764 $93,264 $97,978 $102,897 CAPITAL IMPROVEMENT PROJECTS (CIP) FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Tree Replacement $0 $0 $0 $0 $0
Other Capital Improvement Projects $0 $0 $0 $0 $0
TOTAL CIP EXPENDITURES: $0 $0 $0 $0 $0
TOTAL EXPENDITURES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 TOTAL ANNUAL AND CIP EXPENDITURES: $84,449 $92,764 $93,264 $97,978 $102,897 FUND BALANCE INFORMATION FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Beginning Balance - July 1 $20,219 $33,114 $40,642 $50,711 $59,197 Reserve Collection Increase/(Decrease) $12,895 $7,528 $10,069 $8,487 $6,795 Ending Balance - Projected June 30 $33,114 $40,642 $50,711 $59,197 $65,992 Recommended Operating Reserves $42,224 $46,382 $46,632 $48,989 $51,448 Available Operating Reserves $33,114 $40,642 $46,632 $48,989 $51,448 Target Capital Reserves $53,874 $55,491 $57,155 $58,870 $60,636 Available Capital Reserves $0 $0 $4,079 $10,208 $14,544 *EDU = Equivalent Dwelling Unit.
**Incorporates a 30% reduction to City Personnel and Incidental/Direct Admin costs commencing with Fiscal Year 2024-25.

LANDSCAPING AND LIGHTING DISTRICT NO. 1983-2
(ZONE NO. 9 - BIRDS AND COUNTRY RUN)
5-YEAR PROJECTION THROUGH FISCAL YEAR 2028-29
$33,114
$40,642
$50,711
$59,197
$65,992
$0
$20,000
$40,000
$60,000
$80,000
FY 2024-25
(June 30, 2025)
FY 2025-26
(June 30, 2026)
FY 2026-27
(June 30, 2027)
FY 2027-28
(June 30, 2028)
FY 2028-29
(June 30, 2029)
Landscaping and Lighting Assessment District No. 83-2
Zone 9 (Birds and Country Run)
Projected Ending Fund Balance Trend
Prior to Fiscal Year 2018-19, Zone 9 (Birds and Country Run) property owners approved an increase to their LLAD assessment to eliminate the Zone's annual operating and maintenance deficit and cumulative fund deficit.

Zone 9 is now generating sufficient assessment revenue to pay annual operating and maintenance expenditures and is expected to continue building reserves.

The trend graph below assumes 3% annual assessment increases through Fiscal Year 2028-29.

CITYWIDE PARKS
• 5-YEAR FINANCIAL PROJECTIONS
• TREND GRAPH
REVENUES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Assessment Rates per EDU (Single-Family Home Equivalent)* $153 $158 $162 $167 $172 Assessments $1,260,754 $1,298, 577 $1,337,534 $1, 377,660 $1,418,990 Transfers from LLAD Zones 1 and 7 (Repayment for Street Lights) $54,126 $54,126 $54,126 $54,126 $54,126 General Benefit Contribution $19,845 $21,450 $22,778 $21,737 $22,405 TOTAL REVENUES: $1,334,725 $1,374,152 $1,414, 438 $1,453,523 $1,495,521 ESTIMATED ANNUAL EXPENDITURES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Personnel** $280,467 $288, 881 $297,547 $306,474 $315,668 Transfer for Arterials/Major Roads Landscape and Lighting Maintenance $0 $0 $0 $0 $0 Landscaping, Open Space, and Associated Repairs $396,000 $403, 920 $411,998 $420,238 $428,643 Tree Trimming $0 $50,000 $85,000 $0 $0
Electricity and Streetlight Repairs $27,500 $28,900 $30,400 $32,000 $33,600 Landscape and Facilities Water $184,450 $194,000 $204,000 $215,000 $226,000 Assessment Engineering Cost $6,000 $6,180 $6,365 $6,556 $6,753 Incidental / Direct Admin Cost** $91,235 $94,000 $97,000 $100,000 $103,000 County Fees $6,595 $6, 595 $6,595 $6,595 $6,595
TOTAL ANNUAL EXPENDITURES: $992,246 $1,072,476 $1,138, 906 $1,086,863 $1,120,259 CAPITAL IMPROVEMENT PROJECTS (CIP) FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Tree Replacement $60,000 $50,000 $50,000 $50,000 $50,000 Other Capital Improvement Projects $0 $50,000 $50,000 $50,000 $50,000 TOTAL CIP EXPENDITURES: $60,000 $100,000 $100,000 $100,000 $100,000 TOTAL EXPENDITURES FY 2024-25 FY 2025- 26 FY 2026-27 FY 2027-28 FY 2028-29 TOTAL ANNUAL AND CIP EXPENDITURES: $1,052,246 $1,172,476 $1,238, 906 $1,186,863 $1,220,259 FUND BALANCE INFORMATION FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Beginning Balance - July 1 $152,021 $434,499 $636, 176 $811,708 $1,078,368 Reserve Collection Increase/(Decrease) $282,479 $201,676 $175,532 $266,660 $275,262 Ending Balance - Projected June 30 $434,499 $636,176 $811, 708 $1,078,368 $1,353,630 Recommended Operating Reserves $526,123 $586,238 $619,453 $593,432 $610,130 Available Operating Reserves $434,499 $586,238 $619,453 $593,432 $610,130 Target Capital Reserves*** $0 $0 $0 $0 $0
Available Capital Reserves $0 $49,938 $192,255 $484,936 $743,500 *EDU = Equivalent Dwelling Unit.
**Incorporates a 30% reduction to City Personnel and Incidental/Direct Admin costs commencing with Fiscal Year 2024-25. ***The replacement of existing park improvements associated with LLAD 83-2 Benefit Zone 10 (Citywide Parks) and projects in the Parks Master Plan are intended to be funded with grants and other funding sources that become available, to the extent possible. Therefore, there is no Capital Replacement Analysis required.

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 83-2
(ZONE NO. 10 - CITYWIDE PARKS)
5-YEAR PROJECTION THROUGH FISCAL YEAR 2028-29
$434,499
$636,176
$811,708
$1,078,368 $1,353,630
$0
$350,000
$700,000
$1,050,000
$1,400,000
$1,750,000
FY 2024-25
(June 30, 2025)
FY 2025-26
(June 30, 2026)
FY 2026-27
(June 30, 2027)
FY 2027-28
(June 30, 2028)
FY 2028-29
(June 30, 2029)
Landscaping and Lighting Assessment District No. 83-2
Zone 10 (Citywide Parks)
Projected Ending Fund Balance Trend
Zone 10 (Citywide Parks) is generating sufficient assessment revenue to pay for annual operating and maintenance expenditures. At the current assessment rates, major capital improvement projects will need to be funded with grants or other alternative funding sources.

The trend graph below assumes 3% annual assessment increases through Fiscal Year 2028-29. 5-YEAR FINANCIAL PROJECTIONS ANALYSIS AND FINDINGS REPORT SECTION II II-1
SECT
ION II
LLAD
NO. 2002-1

VICTORIA BY THE BAY
5-Y

EAR FINANCIAL PROJECTIONS, TREND GRAPH, AND

CAPITAL REPLACEMENT ANALYSIS

REVENUES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Assessment Rates per EDU (Single-Family Home Equivalent)* $617 $636 $655 $674 $694 Assessments $520,569 $536,186 $552,272 $568,840 $585,905 General Benefit Contribution $12,141 $12,692 $13,142 $13,617 $14,117 TOTAL REVENUES: $532,710 $548,879 $565,414 $582,457 $600,022

ESTIMATED ANNUAL EXPENDITURES
Personnel** $85,643 $88,212 $90,859 $93,584 $96,392
Transfer for Arterials/Major Roads Landscape and Lighting Maintenance $28,685 $33,902 $31,060 $32,295 $33,617 Landscaping, Open Space, and Associated Repairs $195,000 $198,900 $202,878 $206,936 $211,074 Tree Trimming $25,000 $30,000 $30,000 $30,000 $30,000
Electricity and Streetlight Repairs $50,000 $52,500 $55,200 $58,000 $60,900 Landscape and Facilities Water $225,000 $237,000 $249,000 $262,000 $276,000 Supplies and Vehicle Repairs $0 $0 $0 $0 $0
Assessment Engineering Cost $5,000 $5,150 $5,305 $5,464 $5,628 Incidental / Direct Admin Cost** $20,565 $22,000 $23,000 $24,000 $25,000 County Fees $854 $854 $854 $854 $854
TOTAL ANNUAL EXPENDITURES: $635,747 $668,518 $688,155 $713,132 $739,465

CAPITAL IMPROVEMENT PROJECTS
(CIP)
Tree Replacement $25,000 $25,000 $25,000 $25,000 $25,000 Other Capital Improvement Projects $0 $0 $0 $0 $0
TOTAL CIP EXPENDITURES: $25,000 $25,000 $25,000 $25,000 $25,000

TOTAL EXPENDITURES
TOTAL ANNUAL AND CIP EXPENDITURES: $660,747 $693,518 $713,155 $738,132 $764,465

FUND BALANCE INFORMATION
Beginning Balance - July 1 ($449,090) ($577,127) ($721,767) ($869,508) ($1,025,183) Reserve Collection Increase/(Decrease) ($128,037) ($144,640) ($147,741) ($155,675) ($164,443) Ending Balance - Projected June 30 ($577,127) ($721,767) ($869,508) ($1,025,183) ($1,189,626) Recommended Operating Reserves $330,374 $346,759 $356,577 $369,066 $382,233 Available Operating Reserves ($577,127) ($721,767) ($869,508) ($1,025,183) ($1,189,626) Target Capital Reserves (Based on attached Capital Replacement Analysis) $390,495 $402,210 $414,277 $426,705 $439,506 Available Capital Reserves $0 $0 $0 $0 $0
*EDU = Equivalent Dwelling Unit.
**Incorporates a 30% reduction to City Personnel and Incidental/Direct Admin costs commencing with Fiscal Year 2024-25.

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 2002-1 (VICTORIA BY THE BAY)
5-YEAR PROJECTION THROUGH FISCAL YEAR 2028-29
($577,127)
($721,767)
($869,508)
($1,025,183) ($1,189,626)
($1,500,000)
($1,200,000)
($900,000)
($600,000)
($300,000)
$0
FY 2024-25
(June 30, 2025)
FY 2025-26
(June 30, 2026)
FY 2026-27
(June 30, 2027)
FY 2027-28
(June 30, 2028)
FY 2028-29
(June 30, 2029)
LLAD No. 2002-1 (Victoria by the Bay)
Projected Ending Fund Balance Trend
Extreme drought conditions over the last several years have required a significant increase in irrigation watering to keep landscaping alive and healthy. Additionally, East Bay Municipal Utility District water rates have increased 46% over the last five years. As a result, water costs have increased dramatically for LLAD maintained areas. Additionally, trees in the new urbanist developments north of I-80 have matured, both in height and width, such that they now need to be pruned regularly by a contract tree trimming company. This is new, additional work is beyond the scope of the current landscaping contract and is an additional cost to the LLADs. The Victoria by the Bay LLAD has been most impacted by these increases in cost and is experiencing a rapidly increasing operating and fund deficit, which is expected to continue at the current levels of service.

The trend graph below assumes 3% annual assessment increases through Fiscal Year 2028-29.

CTION III
LL
AD NO. 2002-2

PROMENADE
5-

YEAR FINANCIAL PROJECTIONS, TREND GRAPH, AND

CAPITAL REPLACEMENT ANALYSIS

REVENUES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Assessment Rates per EDU (Single-Family Home Equivalent)* $777 $800 $824 $849 $874 Assessments $178,701 $184,062 $189,584 $195,271 $201,130 General Benefit Contribution $4,041 $4,237 $4,395 $4,555 $4,718 TOTAL REVENUES: $182,742 $188,299 $193,979 $199,827 $205,848 ESTIMATED ANNUAL EXPENDITURES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Personnel** $26,833 $27,638 $28,467 $29,321 $30,201
Transfer for Arterials/Major Roads Landscape and Lighting Maintenance $7,821 $9,243 $8,468 $8,805 $9,166 Landscaping, Open Space, and Associated Repairs $59,400 $60,588 $61,800 $63,036 $64,296 Tree Trimming $22,000 $24,000 $24,000 $24,000 $24,000
Electricity and Streetlight Repairs $14,300 $15,100 $15,900 $16,700 $17,600 Landscape and Facilities Water $67,270 $71,000 $75,000 $79,000 $83,000 Supplies and Vehicle Repairs $0 $0 $0 $0 $0
Assessment Engineering Cost $3,000 $3,090 $3,183 $3,278 $3,377 Incidental / Direct Admin Cost** $8,847 $10,000 $11,000 $12,000 $13,000 County Fees $421 $421 $421 $421 $421
TOTAL ANNUAL EXPENDITURES: $209,892 $221,081 $228,239 $236,561 $245,061 CAPITAL IMPROVEMENT PROJECTS (CIP) FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Tree Replacement $0 $0 $0 $0 $0
Other Capital Improvement Projects $0 $0 $0 $0 $0
TOTAL CIP EXPENDITURES: $0 $0 $0 $0 $0
TOTAL EXPENDITURES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 TOTAL ANNUAL AND CIP EXPENDITURES: $209,892 $221,081 $228,239 $236,561 $245,061 FUND BALANCE INFORMATION FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Beginning Balance - July 1 $103,818 $76,668 $43,886 $9,626 ($27,108) Reserve Collection Increase/(Decrease) ($27,150) ($32,782) ($34,260) ($36,735) ($39,213) Ending Balance - Projected June 30 $76,668 $43,886 $9,626 ($27,108) ($66,322) Recommended Operating Reserves $104,946 $110,540 $114,120 $118,281 $122,530 Available Operating Reserves $76,668 $43,886 $9,626 ($27,108) ($66,322) Target Capital Reserves $179,839 $185,234 $190,791 $196,515 $202,410 Available Capital Reserves $0 $0 $0 $0 $0
*EDU = Equivalent Dwelling Unit.
**Incorporates a 30% reduction to City Personnel and Incidental/Direct Admin costs commencing with Fiscal Year 2024-25.

LANDSCAPING AND LIGHTING DISTRICT NO. 2002-2
(PROMENADE)
5-YEAR PROJECTION THROUGH FISCAL YEAR 2028-29
$76,668
$43,886
$9,626
($27,108)
($66,322)
($80,000)
($40,000)
$0
$40,000
$80,000
$120,000
FY 2024-25
(June 30, 2025)
FY 2025-26
(June 30, 2026)
FY 2026-27
(June 30, 2027)
FY 2027-28
(June 30, 2028)
FY 2028-29
(June 30, 2029)
LLAD No. 2002-2 (Promenade)
Projected Ending Fund Balance Trend
Extreme drought conditions over the last several years have required a significant increase in irrigation watering to keep landscaping alive and healthy. Additionally, East Bay Municipal Utility District water rates have increased 46% over the last five years. As a result, water costs have increased dramatically for LLAD maintained areas. Additionally, trees in the new urbanist developments north of I-80 have matured, both in height and width, such that they now need to be pruned regularly by a contract tree trimming company. This is new, additional work is beyond the scope of the current landscaping contract and is an additional cost to the LLADs. The Promenade LLAD has been significantly impacted by these increases in cost and is experiencing an annual operating deficit which is expected to continue at the current levels of service.

The trend graph below assumes 3% annual assessment increases through Fiscal Year 2028-29.

CTION IV
LL
AD NO. 2004-1

BAYWOOD
5-

YEAR FINANCIAL PROJECTIONS, TREND GRAPH, AND

CAPITAL REPLACEMENT ANALYSIS

REVENUES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Assessment Rates per EDU (Single-Family Home Equivalent)* $2,192 $2,258 $2,325 $2,395 $2,467 Assessments $177,884 $183,221 $188,717 $194,379 $200,210 General Benefit Contribution $2,876 $3,017 $3,126 $3,236 $3,366 TOTAL REVENUES: $180,761 $186,238 $191,843 $197,615 $203,577 ESTIMATED ANNUAL EXPENDITURES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Personnel** $36,176 $37,261 $38,379 $39,530 $40,716
Transfer for Arterials/Major Roads Landscape and Lighting Maintenance $2,759 $3,261 $2,988 $3,107 $3,234 Landscaping, Open Space, and Associated Repairs $45,100 $46,002 $46,922 $47,860 $48,818 Tree Trimming $12,000 $14,000 $14,000 $14,000 $14,000
Electricity and Streetlight Repairs $4,000 $4,200 $4,500 $4,800 $5,100 Landscape and Facilities Water $34,720 $37,000 $39,000 $41,000 $44,000 Supplies and Vehicle Repairs $0 $0 $0 $0 $0
Assessment Engineering Cost $3,000 $3,090 $3,183 $3,278 $3,377 Incidental / Direct Admin Cost** $8,511 $9,000 $10,000 $11,000 $12,000 County Fees $311 $311 $311 $311 $311
TOTAL ANNUAL EXPENDITURES: $146,578 $154,126 $159,283 $164,887 $171,555 CAPITAL IMPROVEMENT PROJECTS (CIP) FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Tree Replacement (10-year loan repayment) $14,700 $14,700 $14,700 $14,700 $14,700 Other Capital Improvement Projects $0 $0 $0 $0 $0
TOTAL CIP EXPENDITURES: $14,700 $14,700 $14,700 $14,700 $14,700 TOTAL EXPENDITURES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 TOTAL ANNUAL AND CIP EXPENDITURES: $161,278 $168,826 $173,983 $179,587 $186,255 FUND BALANCE INFORMATION FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Beginning Balance - July 1 $93,370 $112,853 $130,266 $148,126 $166,154 Reserve Collection Increase/(Decrease) $19,483 $17,413 $17,861 $18,028 $17,321 Ending Balance - Projected June 30 $112,853 $130,266 $148,126 $166,154 $183,476 Recommended Operating Reserves $80,639 $84,413 $86,991 $89,793 $93,128 Available Operating Reserves $80,639 $84,413 $86,991 $89,793 $93,128 Target Capital Reserves $296,304 $305,193 $314,349 $323,780 $333,493 Available Capital Reserves $32,214 $45,853 $61,135 $76,361 $90,348 *EDU = Equivalent Dwelling Unit. The FY 2024-25 Maximum Rate = $2,872.97 **Incorporates a 30% reduction to City Personnel and Incidental/Direct Admin costs commencing with Fiscal Year 2024-25.

LANDSCAPING AND LIGHTING DISTRICT NO. 2004-1
(BAYWOOD)
5-YEAR PROJECTION THROUGH FISCAL YEAR 2028-29
$112,853
$130,266
$148,126
$166,154
$183,476
$0
$50,000
$100,000
$150,000
$200,000
FY 2024-25
(June 30, 2025)
FY 2025-26
(June 30, 2026)
FY 2026-27
(June 30, 2027)
FY 2027-28
(June 30, 2028)
FY 2028-29
(June 30, 2029)
LLAD No. 2004-1 (Baywood)
Projected Ending Fund Balance Trend
Historically, the Baywood LLAD properties have been assessed well below their maximum assessment rates. The assessment rates for this LLAD were increased by 7% for Fiscal Year 2024-25 to generate sufficient revenue to keep up with inflationary cost increases, repay a loan for the replacement of trees that were a safety hazard for the neighborhood, and to perform regular tree pruning.

The trend graph below assumes 3% annual assessment increases through Fiscal Year 2028-29. These proposed assessment rates are well below the maximum allowable assessment rates for LLAD 2004-1.

Inventory Item Quantity
Unit of
Measure
Current Unit Cost
(In 2024 dollars)
Total Cost
(In 2024 dollars)
Useful Life
(yrs)
Remaining Life
(yrs)
Recommended Capital Reserve* at
the end of Useful Life
Target Capital
Reserve for FY 2024-25
Street Light - Single Head 37 EA $4,000 $152,000 30 28 $347,765 $23,184 Fencing - Wood 1,850 LF $15 $27,750 30 10 $37,294 $24,862 Decorative Pavers 45,000 SF $5 $225,000 30 10 $302,381 $201,587 Irrigation Controller 3 EA $15,000 $45,000 15 0 $45,000 $45,000 Miscellaneous Median Irrigation System Replacement 3,200 SF $0.10 $320 1 0 $320 $320 Miscellaneous Roadside Irrigation System Replacement 27,000 SF $0.05 $1,350 1 0 $1,350 $1,350 *Assumes 3% annual cost increase. Totals $451,420.00 $296,304 FY 2024-25 Total Target Capital Reserve for LLAD 2004-1: $296,304 LLAD No. 2004-1 (BAYWOOD) CAPITAL REPLACEMENT ANALYSIS
1 5-YEAR FINANCIAL PROJECTIONS ANALYSIS AND FINDINGS REPORT SECTION V V-1

SECTION V
LLAD NO. 2005-1

BAYSIDE
5-YEAR FINANCIAL PROJECTIONS, TREND GRAPH, AND

CAPITAL REPLACEMENT ANALYSIS

REVENUES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Assessment Rates per EDU (Single-Family Home Equivalent)* $283 $292 $300 $309 $319 Assessments $162,856 $167,742 $172,774 $177,957 $183,296 General Benefit Contribution $2,546 $2,646 $2,762 $2,881 $3,002 TOTAL REVENUES: $165,402 $170,387 $175,536 $180,838 $186,297 ESTIMATED ANNUAL EXPENDITURES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Personnel** $26,085 $26,867 $27,673 $28,504 $29,359
Transfer for Arterials/Major Roads Landscape and Lighting Maintenance $19,560 $23,118 $21,179 $22,021 $22,923 Landscaping, Open Space, and Associated Repairs $55,000 $56,100 $57,222 $58,366 $59,534 Tree Trimming $0 $0 $0 $0 $0
Electricity and Streetlight Repairs $14,850 $15,600 $16,400 $17,300 $18,200 Landscape and Facilities Water $21,700 $23,000 $25,000 $27,000 $29,000 Supplies and Vehicle Repairs $0 $0 $0 $0 $0
Assessment Engineering Cost $3,000 $3,090 $3,183 $3,278 $3,377 Incidental / Direct Admin Cost** $6,070 $7,000 $8,000 $9,000 $10,000 County Fees $618 $618 $618 $618 $618
TOTAL ANNUAL EXPENDITURES: $146,883 $155,393 $159,275 $166,088 $173,010 CAPITAL IMPROVEMENT PROJECTS (CIP) FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Tree Replacement $0 $0 $0 $0 $0
Other Capital Improvement Projects $0 $0 $0 $0 $0
TOTAL CIP EXPENDITURES: $0 $0 $0 $0 $0
TOTAL EXPENDITURES FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 TOTAL ANNUAL AND CIP EXPENDITURES: $146,883 $155,393 $159,275 $166,088 $173,010 FUND BALANCE INFORMATION FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Beginning Balance - July 1 $167,959 $186,478 $201,472 $217,732 $232,483 Reserve Collection Increase/(Decrease) $18,519 $14,994 $16,260 $14,751 $13,287 Ending Balance - Projected June 30 $186,478 $201,472 $217,732 $232,483 $245,770 Recommended Operating Reserves $73,442 $77,697 $79,638 $83,044 $86,505 Available Operating Reserves $73,442 $77,697 $79,638 $83,044 $86,505 Target Capital Reserves $250,472 $257,986 $265,725 $273,697 $281,908 Available Capital Reserves $113,036 $123,775 $138,095 $149,439 $159,265 *EDU = Equivalent Dwelling Unit.
**Incorporates a 30% reduction to City Personnel and Incidental/Direct Admin costs commencing with Fiscal Year 2024-25.

LANDSCAPING AND LIGHTING DISTRICT NO. 2005-1
(BAYSIDE)
5-YEAR PROJECTION THROUGH FISCAL YEAR 2028-29
$186,478 $201,472
$217,732
$232,483
$245,770
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
FY 2024-25
(June 30, 2025)
FY 2025-26
(June 30, 2026)
FY 2026-27
(June 30, 2027)
FY 2027-28
(June 30, 2028)
FY 2028-29
(June 30, 2029)
LLAD No. 2005-1 (Bayside)
Projected Ending Fund Balance Trend
LLAD No. 2005-1 (Bayside) is generating sufficient assessment revenue to pay for annual operating and maintenance expenditures and is in strong position to continue building reserves for future capital improvement and replacement projects. Trees and planter strips for LLAD No. 2005-1 (Bayside) are maintained by an HOA.

The trend graph below assumes 3% annual assessment increases through Fiscal Year 2028-29.

Bayside Park - LLAD 2005-1 (Bayside)
Inventory Item Quantity
Unit of
Measure
Current Unit Cost
(In 2024 dollars)
Total Cost
(In 2024 dollars)
Useful Life
(yrs)
Calculation
Year
Remaining Life
(yrs)
Recommended Capital Reserve*
at the end of Useful Life
Recommended Capital Reserve at
the end of Useful Life
Target Capital
Reserve for FY 2024-25
Benches - Steel/Dumor Inc. 10 EA $1,000 $10,000.00 30 2006 12 $14,258 $14,258 $8,554.57 Drinking Fountain - Steel/Wall Attached 1 EA $1,500 $1,500.00 20 2006 2 $1,591 $1,591 $1,432.22 Gazebo - Steel 1 EA $7,500 $7,500.00 40 2006 22 $14,371 $14,371 $6,466.85 Miscellaneous Irrigation System Replacement 21,600 SF $0.05 $1,080.00 1 2006 0 $1,080 $1,080 $1,080.00 Irrigation Controller 2 EA $15,000 $30,000.00 15 2006 0 $30,000 $30,000 $30,000.00 Park Lighting - Decorative 8 EA $2,000 $16,000.00 25 2006 7 $19,678 $19,678 $14,168.15 Playground (Ages 5-12) - Miracle 1 EA $40,000 $40,000.00 20 2006 2 $42,436 $42,436 $38,192.40 Bathroom - Refurbish 2 EA $10,000 $20,000.00 20 2006 2 $21,218 $21,218 $19,096.20 Tot-Lot - Miracle 1 EA $20,000 $20,000.00 20 2006 2 $21,218 $21,218 $19,096.20 Pathway - Concrete Repair* 3,900 SF $10 $3,900.00 50 2006 32 $10,043 $10,043 $3,615.42 Trash Cans - Plastic Coated Steel 3 EA $750 $2,250.00 25 2006 7 $2,767 $2,767 $1,992.40 Toy Structures - Steel/Plastic 2 EA $1,500 $3,000.00 15 2006 0 $3,000 $3,000 $3,000.00 Columns - Brick Masonry 6 EA $500 $3,000.00 50 2006 32 $7,725 $7,725 $2,781.09 Fencing - Steel 215 LF $25 $5,375.00 30 2006 12 $7,663 $7,663 $4,598.08 Totals $197,048.47 $154,073.56
Landscaping & Lighting - LLAD 2005-1 (Bayside)
Inventory Item Quantity
Unit of
Measure
Current Unit Cost
(In 2024 dollars)
Total Cost
(In 2024 dollars)
Useful Life
(yrs)
Calculation
Year
Remaining Life
(yrs)
Recommended Capital Reserve*
at the end of Useful Life
Recommended Capital Reserve*
at the end of Useful Life
Target Capital
Reserve for FY 2024-25
Street Light - Single Head 158 EA $4,000. 00 $632,000.00 30 2022 28 $1,445,970.29 $1,445,970.29 $96,398.02 *Assumes 3% annual cost increase. Totals $1,445,970.29 $96,398.02 FY 2024-25 Total Target Capital Reserve for LLAD 2005-1: $250,471.58 LLAD No. 2005-1 (BAYSIDE) CAPITAL REPLACEMENT ANALYSIS
1

Hercules City CouncilOctober 8, 2024

Hercules City Council
October 8, 2024