Item 5.1 Visual slideshow presented by LMD Advisory CommitteePROPOSED STRATEGY
&
RECOMMENDATIONS
CITY COUNCIL WORKSHOP
3 -19-2019
LMD 83-1 & LMD 86-1
City of Poway
LMD Advisory Committee
Advisory Committee Analysis
The Advisory Committee considered and analyzed:
Goals
History
Financial Status and Budgets
Maintenance Status
Maintenance Areas
Failed 2018 Ballot
Engineer’s Report
Opportunities and Risks
Advisory Committee Goals
Rehabilitate the landscaping
Address fire and life safety issues
Reduce/stabilize ongoing costs
Establish an equitable cost sharing formula
Ensure success of a second ballot
Three Scenarios
Recommended Strategy
New assessment ballot with incentives
Landscape rehabilitation
Fire & safety risks reduced
Short-term increase in City funding
Do Nothing
No re-ballot
Maintain LMDs at current (unsustainable) level
Fire & safety risks increase
Assessments levels unchanged / Current City funding levels continue
LMDs Dissolve
-LMD landscaping deteriorates no “special benefit”
-All costs transfer to City
Projected City Funding
for Three Scenarios
How Did We Get Here?
Severe drought
Higher costs for water
Higher costs for wages
Aging irrigation infrastructure
Escalating tree maintenance
No LMD assessment increase since 1998
Failed 2018 LMD Ballot
Missed opportunities to escalate LMD assessments
Significant assessment increases/New areas added
Lack of a well-defined plan
Lack of specific commitments
Required years for rehabilitation
Complicated ballot wording
Weak nexus to “special benefits”
Special Benefits & Equity
“Special Benefits” is challenging to understand and
justify:
LMD character change since 1980s
LMDs maintain travel arteries to the freeway
LMDs maintain disjointed and hidden areas
Warrants reconsideration of:
Areas maintained
Maintenance levels
Cost sharing
Advisory Committee Strategy
Rehabilitate neighborhood entrances
Remove and maintain trees
Rehabilitate aging irrigation system
Establish maintenance priorities
Increase City’s ongoing financial contribution
Short-term capital funding from City
LMD Advisory Committee re-ballot campaign
The Advisory Committee believes these
are necessary for re-ballot success.
Advisory Committee Recommendations
Years 1 & 2
LMD re-ballot (FY 20/21)
Ongoing revenue:
$111,700/year City General Benefit Contribution
$433,500/year LMD Assessment Revenue
Pre-ballot City funding:
•Landscape Master Plan
•Model entrances
•LMD Advisory Committee re-ballot activities
•Tree removal / maintenance
•Supplemental water
Year 1 = $525,000
Year 2 = $425,000
Advisory Committee Recommendations
Years 3, 4 & 5
Ongoing revenue:
Increase City general benefit contribution to 10%
($140,000 in Year 3)
Increase in LMD assessments per ballot
(up to $900,000 in Year 3)
Lowers annual City funding beginning Year 4
Post-ballot funding:
•Detailed landscape design (entrances & arterials)
•Ongoing tree removal (1-2 years)
•Capital funding for rehabilitation (partial loan)
•Specific areas shifted to City responsibility
Year 3 -$384,000
Year 4 = $235,000
Year 5 = $137,000
Do Nothing Scenario
No re-ballot
Maintenance at lower level
Fire & safety risks heightened
City’s general benefit contribution
& LMD revenues unchanged
City funding for water & trees escalates annually
Concerned constituency
Projected Do Nothing City Funding
Current Year Year 1 Year 2 Year 3 Year Year 5 Year 10
$377,000 $389,000 $401,000 $414,000 $427,000 $441,000 $520,000
Projected Do Nothing City Funding
Current Year Year 1 Year 2 Year 3 Year Year 5 Year 10
$377,000 $389,000 $401,000 $414,000 $427,000 $441,000 $520,000
Projected Do Nothing City Funding
Current Year Year 1 Year 2 Year 3 Year Year 5 Year 10
$377,000 $389,000 $401,000 $414,000 $427,000 $441,000 $520,000
LMD revenues = $433,000/year
Do Nothing…LMDs Dissolve Scenario
Landscape degrades negating special benefit
Fire & safety risks heightened
100% of financial obligations shift to City
City general benefit contribution
Supplemental water & emergency maintenance
Lost LMD assessment revenue
Disillusioned constituency
Lost LMD assessment = $433,000/year
Net City Funding
Difference between Recommendation and Do Nothing:
Year 1 = $250,000
Year 2 = $145,000
Year 3 = $ 92,000
Year 4 = $ 66,000
Year 5 = $175,000
Year 6 = $271,000
Year 7 = $281,000
Year 8 = $291,000
Year 9 = $301,000
Year 10 = $312,000
$487,000
net cost
$1.7 Million
net savings
A Better Poway for All
Multiple Tree Volunteers
Safety Risk