05 ADOPT RESOLUTION NO. 21-25 DECLARING THE INTENTION TO FORM THE TL&L REASSESSMENT

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DocuSign Envelope ID: BEE51 E5B-6008-493F-8E6A-88E4F576352B 5 AGENDA REPORT Ree ewenda los Reviewed: m �W City Manager DS Finance Director �a MEETING DATE: APRIL 20, 2021 TO: MATTHEW S. WEST, CITY MANAGER FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER SUBJECT: ADOPT RESOLUTION NO. 21-25 DECLARING THE INTENTION TO FORM THE TUSTIN LANDSCAPE AND LIGHTING REASSESSMENT DISTRICT 2021 REPLACING THE EXISTING TUSTIN LANDSCAPE AND LIGHTING DISTRICT SUMMARY The Tustin Landscape and Lighting District was formed in 1985 to fund the maintenance of perimeter landscaping on the arterial highways and for the operation and maintenance of street lighting on public streets within the Tustin Ranch area. Assessments for the benefiting properties were first confirmed for Fiscal Year 1985-1986 and each fiscal year thereafter. Assessments collected through the District do not cover the cost of maintenance. Surplus bond funds have been used since Fiscal Year 2009-2010, as allowed by the California Streets and Highways Code, to fully fund annual maintenance needs within the District boundaries. The surplus funds are nearly exhausted and a new Tustin Landscape and Lighting Reassessment District 2021 will need to be formed to ensure annual revenue is not less than expenses. At the April 6, 2021 meeting, the City Council ordered the preparation of an Engineer's Report for the Levy of Annual Assessments for the Tustin Landscape and Lighting Reassessment District 2021. RECOMMENDATION It is recommended that the City Council adopt Resolution No. 21-25 declaring the intention to form Tustin Landscape & Lighting Reassessment District 2021 replacing the existing district as of Fiscal Year 2021-2022 and to levy assessments commencing with Fiscal Year 2021-2022, accepting and approving the Engineer's Report, ordering a property owner official assessment ballot proceeding, and setting a Public Hearing for June 15, 2021. FISCAL IMPACT The proposed Fiscal Year 2021-2022 budget for the District is $1,241,300. Assessment revenue generated by the Tustin Landscape and Lighting Reassessment District is estimated to be $1,085,597. Included in the assessments is a charge of $16,548 to the City for parkland which will be paid through the City's general fund operating budget. The City is also responsible for general benefits totaling $153,537, which will be paid through the City's general fund operating budget. Should the Tustin Landscape and Lighting Reassessment District 2021 fail to be approved by the property owners in the District, a deficit of $427,899 will exist. Historically, deficit amounts have been paid by the Reassessment District 95-1 (RAD 95-1) Fund. However, the remaining fund balance available for FY 2021-2022 is estimated to be $369,850. To avoid reduction in services, supplemental funding from the General Fund will be necessary in Fiscal Year 2021-2022 and each year after.