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