Loading...
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