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HomeMy WebLinkAbout16 ADOPT RESOLUTION NO. 25-59 DECLARING THE INTENTION TO FORM THE TUSTIN LANDSCAPE AND LIGHTING REASDocusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 MEETING DATE TO: FROM: SUBJECT: SUMMARY: Agenda Item 16 AGENDA REPORT Reviewed: Initial City Manager Fats Finance Director SEPTEMBER 16, 2025 ALDO E. SCHINDLER, CITY MANAGER MICHAEL GRISSO, DIRECTOR OF PUBLIC WORKS ADOPT RESOLUTION NO. 25-59 DECLARING THE INTENTION TO FORM THE TUSTIN LANDSCAPE AND LIGHTING REASSESSMENT DISTRICT 2025 REPLACING THE EXISTING TUSTIN LANDSCAPE AND LIGHTING DISTRICT The Tustin Landscape and Lighting District was formed in 1985 and provides funding for the maintenance of perimeter landscaping on the arterial streets and for the operation and maintenance of street lighting on public roads within the Tustin Ranch area. The current assessment revenue is no longer sufficient to cover the cost of maintaining the public infrastructure. At the July 15, 2025 meeting, staff recommended and the City Council directed the preparation of an Engineer's Report for the Tustin Landscape and Lighting Reassessment District 2025. This report presents the prepared Engineer's Report for the City Council's approval and recommended actions to initiate the formation of the proposed assessment district. RECOMMENDATION: It is recommended that the City Council adopt Resolution No. 25-59 declaring the intention to form Tustin Landscape & Lighting Reassessment District 2025 replacing the existing district as of Fiscal Year 2026-2027 and to levy assessments commencing with Fiscal Year 2026-2027, accepting and approving the Engineer's Report, ordering a property owner official assessment ballot proceeding, and setting a Public Hearing for November 18, 2025. FISCAL IMPACT: Sufficient funds are budgeted and appropriated in the Tustin Landscape and Lighting Fund for the required property owner's official assessment ballot proceedings for the proposed reassessment district. The costs for operating and maintaining the public infrastructure in the Tustin Landscape and Lighting District are offset through the levy of the annual assessments. The proposed Tustin Landscape and Lighting Reassessment District 2025 contains the same cost -recovery structure with proposed annual assessments and a general fund contribution. The proposed reassessment district has no impact on the existing Tustin Landscape and Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 City Council Agenda Report Intent to form TLLD Reassessment District 2025 September 16, 2025 Page 2 Lighting District Fund's budget for Fiscal Year 2025-2026. If approved by the property owners, the reassessment district will replace the existing district and levy assessments commencing Fiscal Year 2026-2027. Similarly, the General Fund contribution would increase in Fiscal Year 2026-2027 and each year thereafter, consistent with the proposed schedule outlined in the Engineers Report and Table 2 below. Should the Tustin Landscape and Lighting Reassessment District 2025 fail to be approved by the property owners, maintenance will remain at reduced service levels and will be refined annually to ensure expenses do not exceed revenue. CORRELATION TO THE STRATEGIC PLAN: Assessments collected through the Tustin Landscape and Lighting District contribute to the fulfillment of the City's Strategic Plan Goal B: Public Safety and Protection of Assets by ensuring Tustin is an attractive and well -maintained community in which people feel pride. BACKGROUND AND DISCUSSION: The Tustin Landscape and Lighting District (District) was formed in 1985 to fund the maintenance of perimeter landscaping on the arterial roadways 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. As property developed in the Tustin Ranch area, such development was required to annex to the District. Today, the District consists of 5,704 parcels encompassing 457.186 acres. In 2021, expenditures required to maintain adequate service levels within the District exceeded the approved assessment revenues. Property owners within the District received a ballot to vote on increasing annual assessments to avoid a reduction in maintenance services. At the time, there was not sufficient support to increase the annual assessments, and on September 21, 2021, the City Council approved a modified maintenance plan to reduce expenses. The maintenance plan is refined annually to ensure expenses do not exceed revenue. Since September 2021, routine landscape maintenance has been reduced from every four weeks to every eight weeks, plant and tree replacement has been suspended, tree trimming has been reduced from every two years to every three years, and irrigation is controlled in a manner that ensures plant material survives the hottest months. Even with reduced maintenance services, the District continues to face a funding shortfall. Over the years, the cost of labor, materials, supplies, and utilities associated with the landscape and lighting system it supports has increased faster than the current assessment rates, leaving the district without sufficient reserves to cover ongoing expenses. On July 15, 2025, staff recommended and the City Council approved Resolution No. 25-54 directing the preparation of the Engineer's Report for the Tustin Landscape and Lighting Reassessment District 2025 to address the District's fiscal health. Accordingly, an Engineer's Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 City Council Agenda Report Intent to form TLLD Reassessment District 2025 September 16, 2025 Page 3 Report (Attachment 2) has been prepared by Harris & Associates. The Engineer's Report describes the structure of the assessment district, including cost estimates for the improvements and assessment rates. The report evaluates the special benefits each parcel receives from the District and analyzes the costs of providing street lighting and landscape maintenance services. The cost of maintenance is shared among property owners based on the level of benefit received. The precise method used to establish each parcel's special benefit may vary according to land usage and benefit area, but similar parcels with equal benefit from the district pay equal assessments. The proposed district includes three separate benefit areas based upon the special benefits received: 1. Benefit Area "A" - Properties located in Benefit Area "A" pay only for Arterial and Collector Street Lighting (ACLT). 2. Benefit Area "B" - Properties located in Benefit Area "B" pay for Arterial and Collector Street Lighting, plus Parkway, Slope, and Trail Landscaping (ACLT + PSTL). 3. Benefit Area "C" - Properties located in Benefit Area "C" pay for Arterial and Collector Street Lighting, plus Parkway, Slope, Trail Landscaping, plus Local Residential Street Lighting (ACLT + PSTL + LRLT). Those parcels that pay for local residential street lighting are located within the residential tracts that have public streets. The Engineer's Report for the proposed Tustin Landscape and Lighting Reassessment District 2025 has been filed with the City Clerk. The report includes a five-year budget commencing Fiscal Year (FY) 2026-2027 through FY 2030-2031 with a corresponding five- year incremental assessment schedule to ease the fiscal impact on property owners and the City. The proposed five-year annual assessment schedule is shown in Table 1 below. The maximum assessment rates per benefit area are fixed rates that increase based on the 5- year phased budget in Table 2 and outlined in the Engineer's Report. After 5 years, the maximum assessment rates will be adjusted annually for inflation, an amount equal to 3% plus the annual change in the Consumer Price Index for All Urban Consumers in the Los Angeles -Long Beach -Anaheim Area, without a further balloting process. Table 1: Current and Proposed Annual Assessment Rates Benefit FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 Area Assessment Assessment Assessment Assessment Assessment Assessment Rate Rate Rate Rate Rate Rate (Current) (Proposed) (Proposed) (Proposed) (Proposed) (Proposed) A $7.58 $7.81 $8.63 $9.46 $10.42 $11.45 B $106.97 $124.80 $150.58 $171.62 $202.17 $224.21 C $140.01 $149.06 $177.40 $201.02 $234.53 $259.78 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 City Council Agenda Report Intent to form TLLD Reassessment District 2025 September 16, 2025 Page 4 Table 2: Proposed Budget FY 2026-2027- FY 2030-2031 Budget Item Current Year 1 FY 26-27 Year 2 FY 27-28 Year 3 FY 28-29 Year 4 FY 29-30 Year 5 FY 30-31 Expenses $931,800 $1,161,260 $1,394,901 $1,586,727 $1,863,306 $2,065,619 Architect/Eng Services 14,500 14,900 15,500 16,000 16,700 17,200 Landscape Maintenance 438,077 510,843 680,124 798,436 1,010,760 1,148,090 Tree Maintenance 157,650 268,000 279,000 310,000 322,000 335,080 Street Light Energy 100,000 121,000 134,000 147,000 162,000 178,200 Electric 9,179 9,977 10,771 10,602 11,358 11,830 Water 161,772 173,441 199,713 218,473 239,244 262,982 Browning Greenbelt 50,622 63,099 75,793 86,216 101,244 112,237 Revenue Assessments 841,739 975,811 1,175,831 1,339,308 1,576,195 1,747,811 City Contribution 90,061 185,449 219,070 247,419 287,111 317,808 $931,800 $1,161,260 $1,394,901 $1,586,727 $1,863,306 $2,065,619 The proposed assessments will provide an increase in annual revenue that will allow the City to restore service levels and resume improvement projects. This includes more frequent landscape maintenance and tree trimming, resuming the annual tree and plant replacement programs, and once again implementing irrigation schedules that ensure plant material always thrives. It is recommended that the City Council adopt the attached resolution, which provides for the following: Resolution No. 25-59 (Attachment 1) declares the City Council's intention to form Tustin Landscape & Lighting Reassessment District 2025 replacing the existing district as of FY 2026-2027 and to levy assessments commencing with FY 2026-2027, accepts and approves the Engineer's Report, orders a property owner official assessment ballot proceeding, and sets a Public Hearing for November 18, 2025, at 6:00 p.m. Once the Public Hearing is closed, the tabulation of ballots will be conducted to determine if property owners within the District boundaries support the formation of the Tustin Landscape and Lighting Reassessment District 2025. Ballots must be submitted prior to closing the Public Hearing. Ballots can also be mailed to the City Clerk's office or placed in the secure box at the main entrance to City Hall in advance of the Public Hearing. A sample Notice of Public Hearing and Ballot (Attachment 3) is attached. Specific instructions on the various Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 City Council Agenda Report Intent to form TLLD Reassessment District 2025 September 16, 2025 Page 5 ways to submit a ballot are included. Depending on the number of ballots returned, counting may continue after the City Council meeting has ended. Should this be the case, the results will be provided to the City Council for consideration at their next regularly scheduled meeting. Michael Grisso Director of Public Works Attachments: 1. Resolution No. 25-59 2. Engineer's Report for Tustin Landscape and Lighting Reassessment District 2025 3. Sample Notice of Public Hearing, Ballot, and Brochure Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 ATTACHMENT 1 Resolution No. 25-59 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 RESOLUTION NO. 25-59 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA DECLARING ITS INTENTION TO FORM TUSTIN LANDSCAPE AND LIGHTING REASSESSMENT DISTRICT 2025 AND TO LEVY ASSESSMENT COMMENCING WITH FISCAL YEAR 2026-2027; ACCEPTING AND APPROVING THE ENGINEER'S REPORT; TO CONDUCT A PROPERTY OWNER OFFICIAL ASSESSMENT BALLOT PROCEEDING ON THE MATTER OF THE NEW ASSESSMENTS; AND SETTING A TIME AND PLACE FOR THE PUBLIC HEARING ON THESE MATTERS WHEREAS, the City Council by Resolution No. 25-54 initiated proceedings for the formation of the Tustin Landscape and Lighting Reassessment District 2025 ("District") pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (Act) as amended and Proposition 218, and to levy and collect annual assessments for the District commencing on Fiscal Year 2026-2027 to pay for the operation, maintenance, and servicing of local landscaping and lighting improvements, and appurtenant facilities related thereto; and WHEREAS, by said Resolution No. 25-54, the City Council ordered the City Engineer to prepare a report pursuant to Section 22565 of said Code and Proposition 218; and WHEREAS, the City has retained Harris & Associates as the Engineer of Work for the purpose of preparing and filing and Engineer's Report ("Report") with the City Clerk concerning the formation of Tustin Landscape and Lighting Reassessment District 2025 and the proposed annual levy of assessments in accordance with the provisions of Chapter 1, Article 4 of the Act and the provisions of the California Constitution Article XI I ID (Constitution); and WHEREAS, the City Council has reviewed and examined the Report as submitted; and WHEREAS, the City desires and intends to form the District, to levy and collect annual assessments for the District commencing with Fiscal Year 2025-2026 to pay for the operation, maintenance, and servicing of the local landscaping and lighting improvements, and appurtenant facilities related thereto. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tustin does, hereby resolve, determine, and order as follows: SECTION 1. That the forgoing recitals are true and correct. Resolution 25-59 Page 1 of 4 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 SECTION 2. That the Report prepared by Harris & Associates consists of the following: i. A Description of the Improvements; and ii. The Method of Apportionment that details the method of calculating the proportional special benefits and the annual assessment obligation for each affected parcel, including a description of an "Assessment Range Formula" applicable to subsequent assessments; and iii. The estimated annual cost and expenses to provide the improvements that established the proposed "Maximum Assessment Rate" and first year's assessments; and iv. An Assessment Diagram depicting the District boundaries; and V. An Assessment Roll containing the assessment to be levied for each Assessor Parcel Number within the District, commencing in Fiscal Year 2026-2027, based on the assessment rate and method of apportionment described therein. SECTION 3. That the District as described in the Report consists of the lots and parcels of land that will receive special benefits from the improvements and services to be provided and are within the boundaries of the City of Tustin, and by reference, maps and documents referencing these lots and parcels of land are made part of this resolution. SECTION 4. That the improvements for which the District is formed generally include, but are not limited to, continued maintenance and operation of the streets and sidewalks within the District, including the construction, operation, servicing and maintenance of landscaping, lighting, and appurtenant facilities, including but not limited to personnel, electrical energy, utilities, materials, contracting services, and other items necessary for the satisfactory operation of these services described as follows: Landscaping and Appurtenant Facilities Landscaping, planting, shrubbery, trees, irrigation systems, hardscape, fixtures, sidewalk, and curb and gutter maintenance adjacent to street trees, and appurtenant facilities, in public street and sidewalk rights -of -way, including parkways, medians, and dedicated easements within the boundary of the District. ii. Lighting and Appurtenant Facilities Poles, fixtures, bulbs, conduits, equipment including guys, anchors, posts and pedestals, metering devices, and appurtenant facilities as required to provide safety lighting in public street and sidewalk rights -of -way and easements within the boundaries of said District. Servicing of the Southern California Edison Company - owned lights shall be furnished by Southern California Edison Company or its successors or assignees and shall be adequate for the intended purpose. Rates for Resolution 25-59 Page 2 of 4 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 power and maintenance shall be authorized by the Public Utilities Commission, State of California. SECTION 5. That the Engineer's Report, as prepared by Harris and Associates, is hereby approved. SECTION 6. That Notice is hereby given that a Public Hearing on these matters will be held by the City Council on Tuesday, November 18, 2025, at 6:00 p.m. or as soon thereafter as feasible, in the Tustin City Council Chamber, located at 300 Centennial Way, Tustin, California 92780. At the Public Hearing, all interested persons shall be afforded the opportunity to hear and be heard. SECTION 7. That the City Clerk or their designee is hereby authorized and directed to prepare and, not less than 45 days prior to the Public Hearing, mail notice of the Public Hearing and property owner Official Assessment Ballots to the subject property owners regarding the proposed levy of the assessments and the assessment range formula outlined in the Engineer's Report, pursuant to Article XIIID of the California Constitution and Government Code Section 53753. SECTION 8. That the property Official Assessment Ballot proceeding conducted for the District assessments shall constitute the property owner's approval or rejection of the proposed levy of assessments, assessment range formula, and formation of the District. Each landowner may return the ballot by mail or in person to the City Clerk's office not later than the conclusion of the Public Hearing on Tuesday, November 18, 2025. After the close of the Public Hearing, the City shall tabulate the ballots returned to determine if a majority protest exists. The ballots shall be weighted according to the proportional financial obligation of each affected property. A Majority protest exists if, upon the conclusion of the Public Hearing, ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment. SECTION 9. The assessments are proposed to be levied annually starting in FY26-27 with a 5-year incremented increase. If the proposed assessments are approved and confirmed by the City Council, the assessments may increase in future years after the 5-year period by an amount equal to 3% plus the annual change in the Consumer Price Index for All Urban Consumers in the Los Angeles -Long Beach -Anaheim Area, without a further vote or balloting process. In each subsequent year in which the assessment will be levied, an updated Engineer's Report, including a proposed budget and assessment rate, shall be prepared. The updated Engineer's Report shall be considered by the City Council at a notice Public Hearing. The updated Engineer's Report shall serve as the basis for the continuation of the assessments. Resolution 25-59 Page 3 of 4 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin held on the 16th day of September 2025. AUSTIN LUMBARD, Mayor ATTEST: ERICA N. YASUDA, City Clerk APPROVED AS TO FORM: DocuSigned by: D FDcE" NDIG, City Attorney /msd/ STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) I, Erica N. Yasuda, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council is five; that the above and foregoing Resolution No. 25-59 was duly and regularly passed and adopted at a regular meeting of the City Council held on the 16th day of September 16, 2025 by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: COUNCILMEMBER RECUSED: ERICA N. YASUDA, City Clerk Resolution 25-59 Page 4of4 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 ATTACHMENT 2 Engineer's Report for Tustin Landscape and Lighting Reassessment District 2025 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 I Engineer's Report Tustin Landscape and Lighting Reassessment District 2025 Fiscal Year 2026-27 September 3, 2025 Prepared for: City of Tustin 300 Centennial Way Tustin, CA 92780 Prepared by: NI Hams &Associates 101 Progress, Suite 250 Irvine, California 92618 (949) 655-3900 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 ENGINEER'S REPORT TUSTIN LANDSCAPE AND LIGHTING REASSESSMENT DISTRICT 2025 The undersigned respectfully submit the enclosed report as directed by the City Council. The undersigned certifies that he or she is a Professional Engineer, registered in the State of California. DATED: September 3, 2025 Harris & Associates BY: Alison Bouley, P.E. R.C.E. No. C61383 I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll and Assessment Diagram thereto attached, was filed in the office of the City Clerk on the day of 12025. City of Tustin Orange County, California I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll thereto attached, was approved and confirmed by the City Council of the City of Tustin, California, on the day of 12025. City of Tustin Orange County, California City Clerk, Tustin Landscape and Lighting Reassessment District 2025 Engineer's Report, FY2026-27 September 3, 2025 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 Table of Contents Introduction.................................................................................................................................1 Section 1 Plans and Specifications..................................................................................1 .1 Section 2 Estimate of Costs2-1 - 1 Section 3 Assessment Diagram........................................................................................3 - 1 Section 4 Assessment4-1 - 1 Section 5 Assessment Roll5-1 - 1 Appendices Appendix A: Budget Detail Appendix B: Government Parcels Appendix C: Maps and Exhibits Appendix D: Required Contribution Tables Appendix E: Special Benefit to Parcels Outside the District Preliminary Assessment Roll (under separate cover) Tustin Landscape and Lighting Reassessment District 2025 ii September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 Introduction Overview This report, prepared for the City of Tustin (the "City"), sets forth findings and engineering analysis to levy assessments in the proposed Tustin Landscape and Lighting Reassessment District 2025 (the "Proposed District" or the "District") for the 2026-27 fiscal year. If approved by the District property owners through a mailed protest balloting process, the Proposed District shall replace the existing Tustin Landscape and Lighting District (the "Existing District"). The Existing District was formed in 1985. In 1997, the property owners approved an assessment increase that included an annual inflation adjustment based on the Consumer Price Index ("CPI"). Property in the Existing District has been assessed based on the approved maximum assessment rates, as escalated by CPI every year since. Despite the annual adjustment for inflation, the rise in annual service costs has significantly outpaced the rise in annual revenue and the resulting deficit is over $500,000 annually. In 2009, the City Council approved the use of remaining funds from Reassessment District No. 95-1 ("RAD 95-1") to offset the annual deficits in the Existing District. RAD 95-1 no longer has sufficient funds to cover the annual landscape rehabilitation projects. In 2021, proceedings were initiated to revise the assessments in order to cover the additional expense of ongoing plant replacement and irrigation repairs. A Public Hearing was conducted, ballots were tabulated and there was a majority protest which did not allow for any changes to the assessment methodology of the Existing District. As a result, the assessment methodology has remained the same and landscape maintenance levels have been greatly reduced. The Proposed District would generate the additional revenue that is needed to properly align the District's annual revenue and with its expenditures so that the District can restore and maintain the level of service previously provided within the District. Some of the services that will be reinstated include restoring irrigation services to various areas, annual landscape rehabilitation and refurbishments, storm work, regular tree trimming, removals and plantings, and arborist services with pest and disease monitoring and treatment. District Boundaries The Proposed District shall serve the Tustin Ranch area of the City that is bounded by Browning Avenue, Irvine Boulevard, Jamboree Road (formerly Myford Road) and the I-5 Freeway, which are the same boundaries of the Existing District. The Assessment Diagram/Boundary Map for the Proposed District is included in Appendix C. Tustin Landscape and Lighting Reassessment District 2025 1 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 District Improvements The purpose of the Proposed District is to provide for the maintenance, and servicing (the "Services") of certain street lighting and landscaping improvements (the "Improvements") in the District area. The Improvements consist solely of parkway landscaping, trail landscaping, slope landscaping, arterial and collector street lighting, and local residential street lighting in public rights -of -way and dedicated easements. Parks and median islands in roadways are not part of the Improvements. Detailed descriptions of the Improvements and Services are provided in Section 1 and the Landscape Maintenance Exhibit of the District for the 2026-27 fiscal year is included in Appendix C. Background of Assessments Landscape & Lighting Act The Existing District was originally formed under the authority of Section 22500 of the California Streets and Highway's Code (the "Act"). As defined in the Landscape and Lighting Act of 1972, an "assessment district shall consist of all territory which, as determined by the legislative body, will benefit by the improvements that are to be assessed to apportion the costs thereof' and "may consist of all or any part of the territory" within the City. The Act also states that the "assessment district may consist of contiguous or noncontiguous areas" and that the "improvements in one area need not be of benefit to other areas". The types of improvements that may be maintained, and incidental expenses that may be funded using assessment revenues are defined in the Act. Proposition 218 In 1996, California voters approved Proposition 218, the Right to Vote on Taxes Act. Proposition 218 amended the California Constitution by adding Article XIIIC and Article XIIID, which affect the ability of local government to levy and collect existing and future taxes, assessments, and property -related fees and charges. Proposition 218 requires that any new or revised assessment district, or any increase to an existing assessment, be supported by an Engineer's Report prepared by a registered professional engineer licensed in the State of California. Since the adoption in 1996, Proposition 218 has been and is likely to continue to be the subject of ongoing litigation, judicial interpretation, constitutional amendment, and statutory clarification. Tustin Landscape and Lighting Reassessment District 2025 2 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 Intent of Report The intent in making a reassessment of the Existing District and forming the Proposed District is to secure the long-term financial sustainability of the District in compliance with the Act, the requirements of Proposition 218, and the legal landscape that exists today. Case Law Review We have reviewed the existing Improvements and Services being provided and the boundaries of the District. In determining assessments for the Proposed District, this Report identifies, details and addresses the following legal requirements: • Clearly identify and state the special benefit received from improvements and services. Silicon Valley Taxpayers Association, Inc. v. Santa Clara County Open Space Authority • Identify and remove from the assessments any general benefits. Beutz v. County of Riverside • Assess parcels based on special benefit received from improvements and services rather than the costs to provide those improvements and services. Town of Tiburon v. Bonander • Assess parcels owned by public agencies that benefit from improvements to be funded. Golden Hills Neighborhood Association v. City of San Diego The following is a summary of these court cases: Silicon Valley Taxpayers Association, Inc. v. Santa Clara County Open Space Authority. In July of 2008, the California Supreme Court issued a ruling on the above titled case that provided legal guidance clarifying the requirements of Proposition 218. Some of the most important elements of the ruling are summarized below: • Benefit assessments are for special, not general benefit. • The services and/or improvements funded by assessments must be clearly defined. • Special benefits are directly received by and provide a direct advantage to property within an assessment district. • The courts opined that Proposition 218 made any challenge to assessments a constitutional issue, which means the courts will take an active role in reviewing challenges to assessments. Tustin Landscape and Lighting Reassessment District 2025 3 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 Town of Tiburon v. Bonander. In December of 2009, the 1 st District Court of Appeal overturned an assessment approved by property owners to place overhead utility lines underground in an area of the Town of Tiburon. The court invalidated the assessment on the grounds that the assessments had been apportioned to assessed property based in part on the costs assigned to specific zones or areas within the boundaries of the district, instead of apportioning the costs based upon proportional special benefit. This means that the cost associated with improvements and services for any parcel doesn't matter when apportioning such cost to the parcel, only special benefits matter when apportioning such cost. Beutz v. County of Riverside. In May of 2010, the 4th District Court of Appeal issued a decision on an appeal to a ruling of the above titled case. This decision overturned an assessment for park maintenance, primarily because the general benefits associated with improvements and services were not clearly calculated, quantified, nor separated from the special benefits. Golden Hills Neighborhood Association v. City of San Diego. In September 2011, the San Diego Court of Appeal issued a decision on the appeal of the above referenced case. This decision overturned an assessment for street and landscaping maintenance in a neighborhood in San Diego, California. The court identified two primary reasons for its decision. First, like in the Beutz case, the court found the general benefits associated with the services were not explicitly calculated, quantified, nor separated from special benefits. Second, the court found that the City had failed to record the basis for the assessment on its own parcels. Proposition 218 Compliance Process Proposition 218 requires property owner approval of any proposed new or increasing assessments. For the Proposed District to comply, notices and assessment ballots shall be mailed to District property owners, starting a required minimum 45 day voting period that is culminates at a public hearing (the "Public Hearing"). The assessment ballots shall be tabulated upon closing of the Public Hearing with the weight of each parcel's vote equal to its proposed assessment amount, meaning one dollar equals one vote. Only ballots that are received by the close of the Public Hearing shall be counted. If the weighted vote from received ballots that are opposed to the Proposed District and assessments is greater than the weighted vote from received ballots that are in favor of the Proposed District and assessments, a majority protest exists, the Proposed District may not be formed and the Existing District shall continue. If the weighted vote from received ballots that are in favor of the Proposed District and assessments is greater than or equal to the weighted vote from received ballots that are opposed to the Proposed District and assessments, there is no majority protest and Tustin Landscape and Lighting Reassessment District 2025 4 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 the City Council may authorize formation of the Proposed District and dissolution of the Existing District. The notice to property owners shall include a provision to account for inflation (the "Annual Inflation Factor") which will be implemented after the 5 year incremented increase outlined in this report. After the 5 year period, the maximum assessment rates will be increased each year by 3% plus the Consumer Price Index ("CPI"). If approved, it will not be necessary to hold a Proposition 218 assessment ballot proceeding after the 5 year period in which there is a proposed increase in assessments as long as the proposed increase is not greater than the 3% plus CPI increase for that year. See Annual Inflation Adjustment under Section 4 below for a detailed description. Tustin Landscape and Lighting Reassessment District 2025 5 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 CITY OF TUSTIN FISCAL YEAR 2026-27 ENGINEER'S REPORT PREPARED PURSUANT TO THE PROVISIONS OF THE LANDSCAPING AND LIGHTING ACT OF 1972 SECTION 22500 THROUGH 22679 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE AND ARTICLE XIIID OF THE CALIFORNIA CONSTITUTION Pursuant to Part 2 of Division 15 of the Streets and Highways Code of the State of California (the 1972 Act), Article XIIID of the California Constitution and in accordance with the Resolution of Initiation adopted by the City Council of the City of Tustin, State of California, in connection with the proceedings for: TUSTIN LANDSCAPE AND LIGHTING REASSESSMENT DISTRICT 2025 hereinafter referred to as the "District", I, Alison Bouley, P.E., the authorized representative of Harris & Associates, the duly appointed ENGINEER OF WORK, submit herewith the "Report" consisting of five (5) sections as follows: SECTION 1 PLANS AND SPECIFICATIONS Plans and specifications for the Improvements are as set forth on the lists thereof, are on file in the Office of the City Engineer and are incorporated herein by reference. SECTION 2 ESTIMATE OF COST The estimated cost of the proposed Services, including incidental costs and expenses in connection therewith, is as set forth on the lists thereof, attached hereto, and are on file in the Office of the City Clerk and incorporated herein by reference. Tustin Landscape and Lighting Reassessment District 2025 6 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 SECTION 3 ASSESSMENT DIAGRAM The diagram of the District showing the exterior boundaries of the District, the boundaries of benefit areas within the District and the lines and dimensions of each lot or parcel of land located in the District is on file in the Office of the City Engineer and is incorporated herein by reference. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Assessor of the County of Orange (the "Assessor") for the fiscal year to which this Report applies. The Assessor's maps and records are incorporated by reference herein and made part of this Report. SECTION 4 ASSESSMENT The assessment, including the method of apportionment of assessments and the assessment calculations, indicate the proposed assessment of the net amount of the costs and expenses of the improvements to be assessed upon the several lots and parcels of land within the District in proportion to the estimated special benefits to be received by such lots and parcels. SECTION 5 ASSESSMENT ROLL An assessment of the estimated cost of the improvements on each benefited lot or parcel of land within the District (the "Assessment Roll"), is on file in the Office of the City Clerk and incorporated herein by reference. The Assessment Roll includes the names and addresses of the owners of real property within this District, as shown on the last equalized roll of the Assessor, is keyed to the records of the Assessor, which are incorporated herein by reference. Tustin Landscape and Lighting Reassessment District 2025 7 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 Section 1 Plans and Specifications DESCRIPTION OF IMPROVEMENTS TUSTIN LANDSCAPE AND LIGHTING REASSESSMENT DISTRICT 2025 FISCAL YEAR 2026-27 District Improvements The plans and specifications for the Improvements, showing the general nature, location and the extent of the Improvements to be serviced and maintained, are on file in the office of the City Engineer and are by reference herein made a part of this report. District Improvements are generally described as follows: Landscaping Improvements Landscaping Improvements include but are not limited to: landscaping, planting, shrubbery, trees, irrigation systems, hardscapes, fixtures, sidewalk maintenance resulting from landscape growth and appurtenant improvements, in public rights -of -way, parkways, and dedicated easements within the boundaries of said District. Landscaping by Improvement Type The landscaping includes parkway, slope and trail landscaping in the Tustin Ranch area, specifically: Parkway Landscaping • The southerly side of Bryan Avenue between Browning Avenue and Tustin Ranch Road • The northerly side of Bryan Avenue between Browning Avenue and Jamboree Road, excepting that portion adjacent to the SCE substation • The easterly side of Browning Avenue between the northerly corner of Tract No. 13094 (southerly of Bent Twig Lane) and El Camino Real, including area from APN 500-201- 02 for a future overcrossing, but excepting that portion adjacent to the SCE substation • The westerly side of Tustin Ranch Road between the Santa Ana I-5 Freeway and Jamboree Road, excepting that portion between the northerly boundary of Tract No. 16782 (-350 feet northerly of Rawlings Way) and Portola Parkway. • The easterly side of Tustin Ranch Road between Bryan Avenue and Jamboree Road, excepting that portion adjacent to Heritage Park between Heritage Way and Kinsman Circle, that portion adjacent to the Golf Course northerly and southerly of the main Tustin Landscape and Lighting Reassessment District 2025 1 -1 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 entrance, and that portion adjacent to the Citrus Ranch Park site at Tustin Ranch Road and Portola Parkway • The southerly side of Irvine Boulevard between the westerly boundary of Tract No. 13053 and the easterly boundary of Tract No. 13038 (±630 feet easterly of Myford Road) • The northerly side of Irvine Boulevard between the westerly City limits and Jamboree Road • The westerly side of Jamboree Road from Bryan Avenue northerly 1,100 feet to the northerly boundary of Tract No. 13030 • The westerly side of Jamboree Road between Irvine Boulevard and the northerly City limits, except that portion adjacent to the Tustin Sports Park • The easterly side of Jamboree Road between the northerly City limits and Tustin Ranch Road • The northerly and southerly sides of La Colina Drive between Tustin Ranch Road and the westerly City limits • The northerly and southerly sides of Portola Parkway between Jamboree Road and Tustin Ranch Road Slope Landscaping • The westerly side of Jamboree Road between the northerly City limits and 600 feet southerly • The easterly side of Jamboree Road between the northerly City limits and Tustin Ranch Road, including the slopes granted to the City by the Transportation Corridor Agency per Instrument No. 1999048101 recorded January 22, 1999 Trail Landscaping • The equestrian/hiking trail from Peters Canyon Regional Park to Tustin Ranch Road / Portola Parkway • The paseo for public access between Tract No. 14366 and Tract No. 14576 from Jamboree Road to Pioneer Road The estimated total landscaping area of the District is 64 acres. The Landscape Maintenance Exhibit for the District for the 2026-27 fiscal year is provided in Appendix C. Lighting Improvements Lighting Improvements include but are not limited to: poles, fixtures, bulbs, conduits, conductors, equipment including guys, anchors, posts and pedestals, metering devices and appurtenant improvements as required to provide lighting in public rights -of -way and dedicated easements within the boundaries of said District. Tustin Landscape and Lighting Reassessment District 2025 1-2 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 The public lighting system shall be maintained to provide adequate illumination. Electricity for street lights shall be furnished by the Southern California Edison Company, and it shall be adequate for the intended purpose. Rates for power shall be those authorized by the California Public Utilities Commission. In 2018, the City purchased all the street lights from Edison and converted them from High Pressure Sodium Vapor to Light Emitting Diode (LED). The purchase and LED Conversion was funded through the City's General Fund and Street Lighting Fund. Lighting by Improvement Type The street lighting system in the District consists of 760 lights as follows No. Type of Light Lumens 386 Light Emitting Diode (LED) 6,550 374 Light Emitting Diode (LED) 2,900 Since the District is built -out, no additional street lights are anticipated for the District. District Services The District shall fund maintenance and servicing costs for the Improvements including, but not limited to, personnel, electrical energy, water, materials, contracting services, and other expenses necessary for the satisfactory operation of the District Improvements. Maintenance Maintenance means the furnishing of services and materials for the ordinary and usual operation, maintenance and servicing of the landscaping, public lighting improvements and appurtenant improvements, including repair, removal or replacement of all or part of any of the landscaping, public lighting improvements or appurtenant improvements; providing for the life, growth, health and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing and treating for disease or injury; the removal of trimmings, rubbish, debris and other solid waste. Servicing Servicing means the furnishing of water for the irrigation of the landscaping and the maintenance of any of the public lighting improvements or appurtenant improvements and the furnishing of electric energy for the public lighting improvements, or for the lighting or operation of landscaping or appurtenant improvements. Tustin Landscape and Lighting Reassessment District 2025 1 - 3 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 Section 2 Estimate of Costs District Budget The City's budget for District Services for each of the Service Categories is shown below. The proposed assessment rates will be ramped up over five (5) years, therefore the FY26-27 through FY30-31 budgets are shown. Maintenance and Servicing Costs may include engineering fees, legal fees, printing, mailing, postage, publishing, and any other related costs identified with the district proceedings. District Administration Costs are prorated based on the Budget Amounts and include Orange County's charge of 0.3% of the assessment for placement on the property tax roll. A detailed breakdown of the proposed 5-year budget can be found in Appendix A of the report. Table 2-1 Proposed 5 Year Budget - Arterial & Collector Street Lighting Year 1 Year 2 Year 3 Year 4 Year 5 FY26-27 FY27-28 FY28-29 FY29-30 FY30-31 Direct and Overhead Costs District Administration $1,458 $1,396 $1,388 $1,358 $1,387 Maintenance and Servicing - Landscape $0 $0 $0 $0 $0 Maintenance and Servicing - Lighting $112,162 $124,212 $136,263 $150,167 $165,184 SUBTOTAL COSTS $113,620 $125,608 $137,651 $151,525 $166,571 Reserve and General Fund Contribution Operating Reserve Fund Addition/(Shortfall) $0 $0 $0 $0 $0 Capital Reserve Fund Addition/(Reduction) $0 $0 $0 $0 $0 General Benefit Contribution - Lighting ($46,437) ($51,337) ($56,258) ($61,929) ($68,078) TOTAL ASSESSMENT $67,183 $74,271 $81,393 $89,596 $98,493 Contribution for Special Benefit Outside District $0 $0 $0 $0 $0 Balance to Levy $67,183 $74,271 $81,393 $89,596 $98,493 Note: totals may differ due to rounding Table 2-2 Proposed 5 Year Budget - Local Residential Lighting Year 1 Year 2 Year 3 Year 4 Year 5 FY26-27 FY27-28 FY28-29 FY29-30 FY30-31 Direct and Overhead Costs District Administration $115 $110 $109 $107 $109 Maintenance and Servicing - Landscape $0 $0 $0 $0 $0 Maintenance and Servicing - Lighting $8,838 $9,788 $10,737 $11,833 $13,016 SUBTOTAL COSTS $8,953 $9,898 $10,846 $11,940 $13,125 Reserve and General Fund Contribution Operating Reserve Fund Addition/(Shortfall) $0 $0 $0 $0 $0 Capital Reserve Fund Addition/(Reduction) $0 $0 $0 $0 $0 General Benefit Contribution - Lighting $0 $0 $0 $0 $0 TOTAL ASSESSMENT $8,953 $9,898 $10,846 $11,940 $13,125 Contribution for Special Benefit Outside District $0 $0 $0 $0 $0 Balance to Levy $8,953 $9,898 $10,846 $11,940 $13,125 Note: totals may differ due to rounding Tustin Landscape and Lighting Reassessment District 2025 2-1 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 Table 2-3 Proposed 5 Year Budget - Parkway, Slope & Trail Landscaping Year 1 Year 2 Year 3 Year 4 Year 5 FY26-27 FY27-28 FY28-29 FY29-30 FY30-31 Direct and Overhead Costs District Administration $13,327 $13,994 $14,503 $15,235 $15,704 Maintenance and Servicing - Landscape $1,025,360 $1,245,401 $1,423,727 $1,684,606 $1,870,219 Maintenance and Servicing - Lighting $0 $0 $0 $0 $0 SUBTOTAL COSTS $1,038,687 $1,259,395 $1,438,230 $1,699,841 $1,885,923 Reserve and General Fund Contribution Operating Reserve Fund Addition/(Shortfall) $0 $0 $0 $0 $0 Capital Reserve Fund Addition/(Reduction) $0 $0 $0 $0 $0 General Benefit Contribution - Landscape ($137,145) ($165,490) ($188,609) ($222,186) ($246,408) TOTAL ASSESSMENT $901,542 $1,093,905 $1,249,621 $1,477,655 $1,639,515 Contribution for Special Benefit Outside District $ (1,868) $ (2,243) $ (2,552) $ (2,996) $ (3,322) Balance to Levy $899,674 $1,091,662 $1,247,069 $1,474,659 $1,636,193 Note: totals may differ due to rounding Table 2-4 Proposed 5 Year Budget - All Service Categories Year 1 Year 2 Year 3 Year 4 Year 5 FY26-27 FY27-28 FY28-29 FY29-30 FY30-31 Direct and Overhead Costs District Administration $14,900 $15,500 $16,000 $16,700 $17,200 Maintenance and Servicing - Landscape $1,025,360 $1,245,401 $1,423,727 $1,684,606 $1,870,219 Maintenance and Servicing - Lighting $121,000 $134,000 $147,000 $162,000 $178,200 SUBTOTAL COSTS $1,161,260 $1,394,901 $195869727 $1,863,306 $2,065,619 Reserve and General Fund Contribution Operating Reserve Fund Addition/(Shortfall) $0 $0 $0 $0 $0 Capital Reserve Fund Addition/(Reduction) $0 $0 $0 $0 $0 General Benefit Contribution ($183,582) ($216,827) ($244,867) ($284,115) ($314,486) TOTAL ASSESSMENT $977,678 $1,178,074 $1,341,860 $1,579,191 $1,751,133 Contribution for Special Benefit Outside District ($1,868) ($2,243) ($2,552) ($2,996) ($3,322) Total Balance to Levy $975,811 $19175,831 $1,339,308 $1,5769195 $19747,811 Note: totals may differ due to rounding District Funds The 1972 Act requires that a special fund be set up for the revenues and expenditures of the District. Funds raised by assessment shall be used only for the purpose as stated herein. The City will make funds available to the District to ensure adequate cash flow and will be reimbursed upon receipt of assessments. Any balance or deficit remaining on July 1 shall be carried over to the next fiscal year. The 1972 Act allows a reserve for cash flow not to exceed 50% of the budget. The following table provides fund balance projections for the District for the 2026-27 fiscal year: Tustin Landscape and Lighting Reassessment District 2025 1 -2 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 Table 2-5 DISTRICT FUND BALANCE Beginning Fund Balance, 7/l/2026 $0 equals FY 2025-26 Ending Fund Balance Projected Revenues, FY 2026-27 $975,811 equals Total to Assessment Projected Expenditures, FY 2026-27 ($1,161,260) equals Cost of Services Projected City Contribution, FY 2026-27 $185,450 equals Special Benefit plus General Benefit Projected Ending Fund Balance, 6/30/2027 $0 * * The projected ending fund balance is an estimate, any remaining amount will be carried over to the next fiscal year. Tustin Landscape and Lighting Reassessment District 2025 1 - 3 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 Section 3 Assessment Diagram An Assessment Diagram for the District is on file in the office of the City Clerk. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the Assessor's maps, for the year when this Report was prepared, and are incorporated by reference herein and made part of this Report. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the Assessors' maps for the fiscal year to which this Report applies. The Assessor's maps and records are incorporated by reference herein and made part of this Report. Tustin Landscape and Lighting Reassessment District 2025 3-1 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 Section 4 Assessment General Discussion The 1972 Act permits the establishment of assessment districts by cities for the purpose of providing certain public improvements which include the maintenance and servicing of landscaping and lighting improvements. Street and Highways Code Section 22573 requires that maintenance assessments be levied according to benefit rather than according to assessed value. This section states: "The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements. " In addition to allowing any reasonable method for apportioning the assessments, the 1972 Act permits the designation of areas of benefit within any individual assessment district if "by reason of variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvements." (Sec. 22574). Thus, the 1972 Act requires the levy of a true "assessment" rather than a "special tax." The Proposed District utilizes Equivalent Dwelling Unit ("EDU") methodology to apportion the total amount to be assessed to the parcels in the District. Parcels are assigned to one of three benefit zones (the `Benefit Zones") based on the nature, location, and extent of District Improvements in proximity to each parcel providing for the apportionment of District costs to District parcels fairly and in proportion to special benefit received by the parcels. EDU methodology and the assignment of parcels to Benefit Zones are discussed in greater detail in this section. Proposition 218, the "Right to Vote on Taxes Act" which was approved on the November 1996 Statewide ballot and added Article XIIID to the California Constitution, requires that a parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred on that parcel. Additionally, Proposition 218 provides that only special benefits are assessable, and the City must separate the general benefits from the special benefits. Prop. 218 also requires that publicly owned property which benefits from the improvements be assessed. The discussion of general benefit and special benefit that follows addresses these requirements for properly determining the District assessment rates and assessments. Tustin Landscape and Lighting Reassessment District 2025 4-1 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 Separation of General and Special Benefit Proposition 218 requires that General and Special Benefit are identified and analyzed separately in determining parcel assessments. Article XIIID, Section 4(a) of the California Constitution, states: "Only special benefits are assessable, and an agency shall separate the general benefits from the special benefits conferred on a parcel. " Since District parcels can only be assessed for the special benefits they receive, contributions from other sources are required to pay for costs of services that provide special benefit to parcels outside the District, if any, and to pay for cost of services that provide general benefit, if any. General Benefit General benefits from District Services are identified and quantified in order to separate them from special benefits and to remove general benefit costs prior to performing assessment calculations. Landscaping General Benefit Tustin Ranch has extensive walkways that are used by people other than property owners. These people receive general benefit from the landscaping. The general benefit cost is separated from special benefit cost and the general benefit amount is quantified by determining the cost of maintaining the minimum level of landscaping that would be provided in the interest of public safety and the protection of property. The baseline level of service would provide for public safety and essential property protection and avoid negative impacts on adjacent roadways and vehicles traveling on those roadways and potential property damage resulting from slope failures. This baseline level of service would result in a far less visually pleasing environment than what is created by the enhanced levels of services associated with the regular landscape maintenance that is provided in the District. Specific cost items included with baseline services are tree trimming, weed abatement, rodent control and erosion control to be performed a few times or less each year depending on the area. In developing the estimated general benefit cost of landscaping, analysis of local landscaping costs indicated an estimated cost of $0.027 per square foot to provide the baseline service level for all landscaping areas in District for FY26-27. The general benefit cost of landscaping is not assessed and must be paid for by a contribution to the District. Tustin Landscape and Lighting Reassessment District 2025 4-2 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 Refer to Table 1 in Appendix D for the general benefit cost of landscaping calculation for FY26- 27. The general benefit required contribution for FY27-28 through FY30-31 is escalated proportionate to the annual increase in 5 year phased budget. The 5-year estimated required contribution for landscaping general benefit is detailed in the table below. Jamboree Road Slopes. The slopes along the easterly side of Jamboree Road are considered to provide general benefit. Therefore, Jamboree Road slope landscaping costs may not be assessed and shall be paid for by a contribution from other sources. Refer to Table 2 in Appendix D for the Jamboree slopes general benefit cost of landscaping calculation for FY26-27. The 5-year estimated required contribution for landscaping general benefit is detailed in the table below. Table 4-1 REQUIRED CONTRIBUTION FOR LANDSCAPING GENERAL BENEFIT Year 1 Year 2 Year 3 Year 4 Year 5 FY26-27 FY27-28 FY28-29 FY29-30 FY30-31 Landscaping General Benefit S70,474 $84,652 $96,292 $113,076 $125,354 Jamboree Slopes Landscaping General Benefit S66,671 $80,838 $92,317 $109,110 $121,054 Total Required Contribution $137,145 $165,490 $188,609 $222,186 $246,408 Lighting General Benefit Arterial and Collector Lighting. The portion of arterial lighting above what is required to illuminate a typical residential neighborhood is general benefit for vehicular traffic. The typical local light is 2,900 lumens whereas the arterial light is 6,550 lumens, therefore 44.275% (2,900 lumens/6,550 lumens) of illumination from arterial lights provides special benefit and the remaining 55.725% of illumination from arterial lights provides general benefit. A contribution is required for the general benefit portion of the arterial lighting costs and such portion is not included in the assessments for the District parcels. Collector streets within the District do not create a general benefit to the public at large. Rather, they serve the specific function of providing access to and from properties within the District and directly benefit those parcels by connecting local streets to the broader roadway network. Therefore, no general benefit is assigned to the lighting on these roadways. Refer to Table 3 in Appendix D for the general benefit cost of lighting calculation. The 5 year estimated required contribution for arterial and collector lighting general benefit is detailed in the table below. Tustin Landscape and Lighting Reassessment District 2025 4-3 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 Table 4-2 REQUIRED CONTRIBUTION FOR ARTERIAL LIGHTING GENERAL BENEFIT Year 1 Year 2 Year 3 Year 4 Year 5 Arterial and Collector Lighting FY26-27 FY27-28 FY28-29 FY29-30 FY30-31 General Benefit Total Required Contribution $46,437 $51,337 $56,258 $61,929 $68,078 Local Residential Li2htin2. There are no general benefits provided by the local residential street lights. These lights are within close proximity to the benefiting parcels and provide special benefit to those parcels only as they are located on local residential streets typically used by those residents. Other Lighting. Lighting at intersections, which is defined as safety lighting, is considered to be the minimum lighting requirement for vehicular safety; therefore, safety lighting represents the general benefit portion of street lighting and is not assessed. Traffic Signals are also considered to provide a general benefit and are not assessed. Costs associated with traffic signals and lights at intersections are not included in the District cost estimate. Special Benefit In determining the proportionate special benefit derived by each identified parcel, the proximity of the parcel to the Improvements and the capital, maintenance and operating costs of the Improvements were considered and analyzed. Due to the District -wide nature of the Improvements, it has been demonstrated and determined that all of the parcels in the District are uniquely benefited by and receive a direct advantage from the Improvements and are conferred a special benefit over and above general benefits by said Improvements in a way that is particular and distinct from its effect on other parcels and that real property in general and the public at large do not share. As a result, each parcel within the District receives a special and distinct benefit from the Improvements and each parcel in the District is assessed only for their special and distinct benefit from the Improvements. Landscaping Speciai Benefit The District enjoys a higher level of landscaping and streetscapes along its parkways and slopes than the rest of the City of Tustin. The City provides funding for the landscaped medians in the area, so those costs are not assessed. Additionally, a pedestrian and equestrian trail that is linked to the regional trail system is landscaped and beautified and maintained by the District. The landscape Improvements along the arterial and collector streets, parkways, slopes and the regional trail enhance the beauty of the area and provide special benefit to the parcels in the District. The specialized benefits associated with landscaping are specifically: Tustin Landscape and Lighting Reassessment District 2025 4-4 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 • Improved aesthetic appeal of properties providing a positive representation of the area and properties. • Enhanced desirability of properties through association with the improvements. • Enhanced adaptation of the urban environment within the natural environment from adequate green space and landscaping. • Environmental enhancement through improved erosion resistance, dust and debris control, and fire protection. • Increased sense of pride in ownership of property within the District resulting from well - maintained improvements associated with the properties. • Enhanced quality of life through well -maintained green belts and landscaped areas. • Reduced criminal activity and property -related crimes (especially vandalism) against properties through well -maintained surrounding and amenities. • Enhanced environmental quality of the parcels by providing oxygenation and attenuating noise. Exception. The Tustin Marketplace, Tustin Annex and Tustin Auto Center are excluded from District landscaping assessments because they maintain the landscaping that is adjacent to their properties. The maintenance level for those landscaping areas is even higher than the level maintained throughout the rest of the District. Required Contribution for Landscaping Special Benefit to Out of District Parcels There are 117 parcels located outside of the district along the westerly side of Browning Avenue that derive special benefit from 4.24 acres of landscaping along the exterior of the District on the easterly side of Browning Avenue from El Camino Real to Bent Twig Lane. The special benefit received by these parcels shall be paid for by contribution from other sources and is deducted in determining the assessment that is levied upon the District parcels. Table 4-3 REQUIRED CONTRIBUTION FOR SPECIAL BENEFIT TO OUT OF DISTRICT PARCELS Year 1 Year 2 Year 3 Year 4 Year 5 FY26-27 FY27-28 FY28-29 FY29-30 FY30-31 Out of District Total Required Contribution $1,868 $2,243 $2,552 $2,996 $3,322 Refer to Table 4 in Appendix D for the calculation of the portion of landscaping costs that provides special benefit to the out of district parcels for FY26-27. The landscaping costs that provides special benefit to the out of district for FY27-28 through FY30-31 is escalated proportionate to the annual increase in 5 year phased budget. Details regarding the property outside of the District that receives such special benefit is provided in Table 1 and 2 in Appendix E. Tustin Landscape and Lighting Reassessment District 2025 4-5 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 Lighting Special Benefit The special benefits of street lighting include safety, security of property, improvements, and goods, specifically: • Mitigates property damage due to criminal activity • Serves as deterrent to graffiti and vandalism • Alleviates the fear of crime, which increases the desirability of property • Improves nighttime visibility for the local access of emergency vehicles. Promotes business and industry In determining the proportionate special benefit derived by each identified parcel, the proximity of the parcel to the lighting Improvements and the capital, maintenance and operating costs of said Improvements were considered and analyzed. Due to the District -wide nature of the lighting Improvements, it has been demonstrated and determined that all of the parcels in the District are uniquely benefited by and receive a direct advantage from said lighting Improvements and are conferred upon a special benefit over and above general benefits by said lighting Improvements in a way that is particular and distinct from its effect on other parcels and that real property in general and the public at large do not share. As a result, each parcel within the District receives a special and distinct benefit from the Improvements. Arterial and Collector Lighting (ACLT). The local portion of street lighting on the arterial and collector streets provides special and direct benefits to all properties within the District, as these lighting benefits are directly related to the positive enhancement of the Community and therefore increase safety and security and property desirability. All properties within the District receive a special benefit from lighting on the arterials and collectors. Local Residential Lighting ("LRLT"). Many of the residential units in the District have private street lighting systems directly adjacent to their homes. This lighting is usually provided by a Home Owners Association, and payment for the lights are usually made through association dues or assessments and the parcels are not assessed by the District. Parcels that have local residential street lighting provided by the City receive special and direct local lighting benefit and are assessed for those local lights. There are 91 local residential lights. The cost for these lights is assessed only to benefiting parcels based on the special and direct benefits to those properties. HOA Lighting. Properties that are adjacent to private streets pay for their local private street lights through their Home Owners Association fees and are not assessed by the District. Other Lighting. Street lights that are adjacent to the District do not provide special benefit to parcels in the District. Street lights on the east side of Jamboree Road, north of the I-5 Freeway, Tustin Landscape and Lighting Reassessment District 2025 4-6 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 which provide benefit to the property on the east side of Jamboree, are not included in this District and are not assessed. Total Required Contribution General and Special Benefit The total required contribution for general benefit and special benefit to parcels outside the district is shown in the table below. Refer to Table 5 in Appendix D for details. Table 4-4 TOTAL REQUIRED CONTRIBUTION FOR GENERAL AND SPECIAL BENEFIT Year 1 Year 2 Year 3 Year 4 Year 5 FY26-27 FY27-28 FY28-29 FY29-30 FY30-31 Total Required Contribution for General Benefit $183,582 $216,827 $244,867 $284,115 $314,486 Total Required Contribution for Special Benefit* $1,868 $2,243 $2,552 $2,996 $3,322 Total Required Contribution for General and Special Benefit $185,450 $219,070 $247,419 $287,111 $317,808 * Required Contribution for Special Benefit to Out of District Parcels Note: totals may differ due to rounding Equivalent Dwelling Unit Methodology Since the assessment will be levied against parcels of property as shown on the tax roll, the final charges must be assigned by Assessor's Parcel Number. If assessments were to be spread just by parcel, not considering land use or parcel size, a single-family parcel could be paying the same as a 50-unit apartment parcel or a large commercial establishment in a similar zone and this would not be equitable. Therefore, Equivalent Dwelling Unit methodology is used to allocate assessments. The single-family residential lot has been selected as the basic unit for calculation of assessments and is defined as one (1) EDU. The EDU methodology is used to calculate the EDU for other residential land uses and for non-residential parcels. Parcels containing apartments are assigned EDU's based on the number of dwelling units on each parcel of land and non-residential parcels are converted based on the lot size of each parcel of land. The EDU methodology is seen as the most appropriate and equitable method of spread for landscaping and lighting districts, as the benefit to each parcel from the Improvements are apportioned as a function of land use type and size. EDU Factors by Land Use Single Family Residential. Parcels zoned for single family residential ("SFR") uses are assessed 1 EDU per dwelling unit. Parcels designated as SFR land -use shall be assessed 1 EDU per dwelling unit, including vacant subdivided residential lots and vacant land zoned for single family residential uses with a tentative or final tract map. Multiple Family Residential. Multiple -residential (including condominiums) land use equivalencies are determined based on the number of dwelling units on each parcel. Based on Tustin Landscape and Lighting Reassessment District 2025 4-7 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 population density data from representative cities in Southern California and typical size of structure relative to the typical single-family residence, the EDU factor for multi -family residential property, including condominiums, is assigned 0.75 EDU per dwelling unit. This includes vacant multi -family residential parcels zoned for multiple -residential uses with a tentative or final tract map. Non -Residential. In converting non-residential properties to EDU's, the factor used is the City of Tustin's typical standard single family residential lot area and the number of lots that could be subdivided into an acre of land. All properties that are developed for non-residential uses are therefore assigned 6 EDU per acre. These include commercial, industrial, church, school and other non-residential uses. Golf Course Property. Golf course parcels containing the clubhouse are considered developed commercial property and therefore assigned 6 EDU per acre. Golf course parcels that contain the course greens are also considered developed commercial property, but the development is at a lower level. Therefore, golf course parcels are assessed at a rate between developed and vacant land, at twice the rate of vacant parcels with no development designation, which is 2.0 EDU/acre x 2 = 4 EDU per acre. Public Property. Article XIIID of the California Constitution requires that all benefiting properties be assessed for their fair share of the special benefit including properties that are owned by a public agency. Public properties with residential use are assigned EDU's based on the type of residential use in the same manner as described above. Public properties with non- residential land uses (such as schools and fire stations) shall be assessed the same as private property with the same designation. Public park parcels are assigned 2 EDU's per acre due to the passive nature of the parks. Exception. Peters Canyon Regional Park is a large, natural, open space park with very few facilities, which straddles the cities of Orange and Tustin and a portion of unincorporated county area. The park has many access points around its perimeter and one is within the Tustin Ranch area. This park receives a very small amount of benefit relative to its size, and it seems reasonable to compare it to other existing parks within Tustin Ranch. In assigning EDU to Peters Canyon Regional Park, the acreage is adjusted to 6.26 acres based on the average size of developed parks in the City of Tustin including, five public parks (Camino Real, Cedar Grove, Heritage, Laurel Glen, and the Tustin Sports Park) and two private parks. Therefore this parcel is assigned 2 EDU's per acre multiplied by 6.26 acres for a total of 12.52 EDU's. Exempt Property. Excepted from the assessment shall be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public drainage, public easements and rights -of -ways, public greenbelts and parkways. Also excepted from Tustin Landscape and Lighting Reassessment District 2025 4-8 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 assessment are utility rights -of -way, common areas (such as in condominium complexes), landlocked parcels, unbuildable parcels vacated by the City, and parcels designated on Tract or Parcel Maps for landscaping. These properties are exempt because they do not generate a direct special benefit from the improvements or services funded by the assessments, or because they are publicly owned and maintained for the benefit of the community at large A list of public properties and exceptions that receive benefit is included in Appendix B. Table 4-5 EQUIVALENT DWELLING UNIT FACTORS BY LAND USE Land Use EDU Factor Single Family Residential 1.0 EDU per dwelling unit Multi -family Residential 0.75 EDU per dwelling unit Non -Residential 6.0 EDU per acre Golf Course Greens 4.0 EDU per acre Public Parks 2.0 EDU per acre Benefit Areas All parcels in the District are assigned to one of the following benefit areas based on which Services are providing special benefit: Benefit Area A - All parcels that receive special benefit from: • Arterial and Collector Street Lights only. Benefit Area B - All parcels that receive special benefit from: • Arterial and Collector Street Lights • Parkway, Slope and Trail Landscaping. Benefit Area C - All parcels that receive special benefit from: • Arterial and Collector Street Lights • Local Residential Street Lights • Parkway, Slope and Trail Landscaping. The following table provides the total EDU for each Benefit Area of the District: Tustin Landscape and Lighting Reassessment District 2025 4-9 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 Table 4-6 EDU BY BENEFIT AREA Benefit Area Parcels Dwellings Acres EDU's A 41 -- 151.863 911.178 B 5,294 7,357 305.323 7,321.416 C 369 369 0.000 369.000 Total 5,704 7,726 457.186 8,601.594 EDU by Service Category Arterial and Collector Lighting The following table shows the number of parcels, dwellings, acres and total EDU's for each land use classification that receives arterial and collector lighting benefit for the 2026-27 fiscal year: Table 4-7 ARTERIAL & COLLECTOR LIGHTING BENEFIT Land Use Parcels Dwellings Acres EDU's Single Family Residential 2,626 2,626 2,626.000 Multi -family Residential 2,974 5,100 3,825.000 Non -Residential 60 184.487 1,106.922 Schools 10 48.573 291.438 Golf Course 12 151.991 607.964 Public Parks 22 72.135 * 144.270 Total 5,704 7,726 457.186 8,601.594 *this includes Peters Canyon Regional Park's adjusted acreage Local Residential Lighting The following table shows the number of parcels, dwellings, acres and total EDU for each land use classification that receives local residential lighting benefit for the 2026-27 fiscal year: Table 4-8 LOCAL RESIDENTIAL LIGHTING BENEFIT Land Use Parcels Dwellings EDU's Single Family Residential 369 369 369.000 Tustin Landscape and Lighting Reassessment District 2025 4 - 10 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 Parkway, Slope and Trail Landscaping The following table shows the number of parcels, dwellings, acres and total EDU for each land use classification that receives landscaping benefit for the 2026-27 fiscal year: Table 4-9 PARKWAY, SLOPE & TRAIL LANDSCAPING BENEFIT Land Use Parcels Dwellings Acres EDU's Single Family Residential 2,626 2,626 2,626.000 Multi -family Residential 2,974 5,100 3,825.000 Non -Residential 19 0 32.624 195.744 Schools 10 0 48.573 291.438 Golf Course Public Parks 12 22 0 151.991 72.135 607.964 * 144.270 Total 5,663 7,726 305.323 7,6 *this includes Peters Canyon Regional Park's adjusted acreage MW Service Category Costs Is The 5-year estimated cost for the for each Service Category detailed in Section 2 of this report is summarized in the table below. Table 4-10 SERVICE CATEGORY COSTS Service Category Year 1 FY26-27 Year 2 FY27-28 Year 3 FY28-29 Year 4 FY29-30 Year 5 FY30-31 ACLT - Arterial & Collector Lighting $67,183 $74,271 $81,393 $89,596 $98,493 LRLT - Local Residential Lighting $8,953 $9,898 $10,846 $11,940 $13,125 PSTL - Pk , Slope & Trail Landscapc $899,674 $1,091,662 $1,247,069 $1,474,659 $1,636,193 Assessments Maximum Assessment Rates The maximum assessment rates are calculated by dividing the total service category cost shown in the previous table based on the EDU for each service category. Tustin Landscape and Lighting Reassessment District 2025 4 - 11 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 Table 4-11 ACLT - Arterial & Collector Li htin EDU's: 8,601.594 Cost of Service Maximum Assessment Rate FY26-27 $67,183 $7.81 / EDU FY27-28 $74,271 $8.63 / EDU FY28-29 $81,393 $9.46 / EDU FY29-30 $89,596 $10.42 / EDU FY30-31 $98,493 $11.45 / EDU LRLT - Local Residential Lighting EDU's: 369.000 Cost of Service Maximum Assessment Rate FY26-27 $8,953 $24.26 / EDU FY27-28 $9,898 $26.82 / EDU FY28-29 $10,846 1 $29.39 / EDU FY29-30 $11,940 $32.36 / EDU FY30-31 $13,125 $35.57 / EDU PSTL - Pkw , Slope & Trail Landsca e EDU's: 7,690.416 Cost of Service Maximum Assessment Rate FY26-27 $899,674 $116.99 / EDU FY27-28 $1,091,662 $141.95 / EDU FY28-29 $1,247,069 $162.16 / EDU FY29-30 $1,474,659 $191.75 / EDU FY30-31 $1,636,193 $212.76 / EDU The table below summarizes the maximum assessment per EDU for each Service Category: Table 4-12 MAXIMUM ASSESSMENT RATES Service Category EDU's Year 1 FY26-27 Year 2 FY27-28 Year 3 FY28-29 Year 4 FY29-30 Year 5 FY30-31 ACLT - Arterial & Collector Lighting 8,601.59 $7.81 $8.63 $9.46 $10.42 $11.45 LRLT - Local Residential Lighting 369.00 $24.26 $26.82 $29.39 $32.36 $35.57 PSTL - Pkwy, Slope & Trail Landscape 7,690.42 $116.99 $141.95 $162.16 $191.75 $212.76 Annual Inflation Adjustment There is a provision for inflation (the "Annual Inflation Factor"), which allows the maximum assessment rates to be increased each year after the 5-year period based on an Inflation Factor. The Inflation Factor shall be 3% plus the annual change from December to December in CPI for all Urban consumers for the Los Angeles, Long Beach and Anaheim areas (Los Angeles -Long Beach -Anaheim, CA, CPI-U). Tustin Landscape and Lighting Reassessment District 2025 4 -12 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 Assessment Summary As discussed previously, each benefit area assessment rate is a combination of the service category cost per EDU. The maximum assessment rates per benefit area are fixed rates that increase based on the 5 year phased budget provided by the City. After the 5 year period, the maximum assessment rates will increase based annual inflation adjustment described above. The proposed assessed rates for each Benefit Area are equal to or less than the maximum allowable rates. The following table summarizes the calculated assessment rates and the maximum assessment rates for each Benefit Area: Table 4-13 ASSESSMENT RATE SUMMARY Benefit Area Current Year 1 FY26-27 Year 2 FY27-28 Year 3 FY28-29 Year 4 FY29-30 Year 5 FY30-31 Benefit Area A ACLT $7.58 $7.81 $8.63 $9.46 $10.42 $11.45 Benefit Area B ACLT+PSTL $106.97 $124.80 $150.58 $171.62 $202.17 $224.21 Benefit Area C ACLT + PSTL + LRLT $140.01 $149.06 $177.40 $201.01 $234.53 $259.78 Tustin Landscape and Lighting Reassessment District 2025 4 - 13 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 I, Alison Bouley, P.E. the authorized representative of Harris & Associates, the duly appointed Assessment Engineer, am of the opinion that the assessments have been apportioned in accordance with the estimated special benefit derived by each parcel and that the assessments do not exceed the reasonable cost of the proportional special benefit, per the assessment apportionment methodology approved by the City Council and the property owners within the assessment district via a property owner balloting proceeding in 2025 per the provisions of Article XIIID of the California Constitution. DATED: September 3, 2025 Harris & Associates No. C813)83;mv By. Alison Bouley, P.E. ASSESSMENT ENGINEER R.C.E. No. C61383 Tustin Landscape and Lighting Reassessment District 2025 4 - 14 Engineer's Report, FY2026-27 September 3, 2025 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 Section 5 Assessment Roll The Assessment Roll is a listing of the proposed assessment and the amount of assessment for Fiscal Year 2026-27 through Fiscal Year 2030-31 apportioned to each lot or parcel, as shown on the latest roll at the Assessor's Office, and contained in the Assessment Roll on file in the office of the City Clerk of the City of Tustin, which is incorporated herein by reference. The description of each lot or parcel is part of the records of the Assessor of the County of Orange and these records are, by reference, made part of this Report. The Assessment Roll includes property owner names and addresses for each lot or parcel, as shown on the Assessment Diagram referenced in Section 4 herein and as listed on the last equalized roll of the Assessor of the County of Orange which is, by reference, made part of this report. Tustin Landscape and Lighting Reassessment District 2025 5-1 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 Appendix A: Budget Detail Budget Detail Table Year 1 Year 2 Year 3 Year 4 Year 5 Description Detail Current FY26-27 FY27-28 FY28-29 FY29-30 FY30-31 Architect/Eng Services Annual Engineer's Report/Dist. Administration $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 County Collection Charge (0.3% of Assessments) $2,500 $2,900 $3,500 $4,000 $4,700 $5,200 Landscape Maintenance Landscape Maintenance Contract (Bimonthly maintenance) $349,461 $356,308 $446,688 $545,903 $739,529 $857,811 Irrigation Repairs $88,616 $104,535 $113,436 $122,533 $131,231 $140,279 Annual Landscape Rehab (Refurbishments) Project $0 $50,000 $120,000 $130,000 $140,000 $150,000 Tree Trimming Contract Tree Trimming (2 year cycle) $157,650 $162,000 $168,000 $175,000 $182,000 $189,280 Tree Removals (15 per year) $0 $39,000 $41,000 $42,000 $44,000 $45,760 Tree Planting (20 per year) $0 $0 $0 $20,000 $20,000 $21,000 Arborist Services, Pest, Disease Monitoring and Treatment $0 $44,000 $46,000 $48,000 $50,000 $52,000 Tree Watering Services $0 $23,000 $24,000 $25,000 $26,0001 $27,040 Street Light Energy Street Lights - Arterial & Collector $92,696 $112,162 $124,212 $136,263 $150,167 $165,184 Street Lights - Local $7,304 $8,838 $9,788 $10,737 $11,833 $13,016 Electric Irrigation $9,179 $9,977 $10,771 $10,602 $11,358 $11,830 Water IRWD Service Areas $161,772 $173,441 $199,713 $218,473 $239,244 $262,982 Regular Landscape Maintenance $34,539 $43,052 $51,713 $58,824 $69,077 $76,578 Browning from ECR to Irrigation Repairs $4,384 $5,465 $6,564 $7,467 $8,769 $9,721 Bent Twig Annual Landcape Maintenance Water $10,878 $13,559 $16,287 $18,527 $21,756 $24,118 Electrical $821 $1,023 $1,229 $1,398 $1,642 $1,820 Total Budget $931,800 $1,161,260 $1,394,901 $1,586,727 $1,863,306 $2,065,619 Note: 5 year budget provided by the City in order to phase in services and improvements to restore and maintain the level of service for the District while minimizing the annual assessment increases. Tustin Landscape and Lighting Reassessment District 2025 A -1 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 Appendix B: Government Parcels Tustin Landscape and Lighting Reassessment District 2025 B - 1 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 City of Tustin Tustin Reassessment District 2025 08/29/25 Page 1 of 1 GOVERNMENT PARCELS Year 1 Year 2 Year 3 Year 4 Year 5 Benefit Current FY25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 APN Area Landuse Acres DUI's Assessment Assessment Assessment Assessment Assessment Assessment Owner Comments 104-290-38 B PRK 6.26 0 $ 1,339.26 $ 1,562.50 $ 1,885.26 $ 2,148.68 $ 2,531.17 $ 500-203-01 B PRK 4.251 0 $ 909.46 $ 1,061.05 $ 1,280.23 $ 1,459.11 $ 1,718.85 $ 500-221-07 B PRK 3.6 0 $ 770.18 $ 898.56 $ 1,084.18 $ 1,235.66 $ 1,455.62 $ 500-221-10 B PRK 1.358 0 $ 290.53 $ 338.96 $ 408.98 $ 466.12 $ 549.09 $ 500-233-02 B PRK 3.008 0 $ 643.53 $ 750.80 $ 905.89 $ 1,032.47 $ 1,216.25 $ 500-291-26 A C/I 1.562 0 $ 71.04 $ 73.20 $ 80.88 $ 88.66 $ 97.66 $ 501-095-01 B PRK 15.275 0 $ 3,267.93 $ 3,812.64 $ 4,600.22 $ 5,242.99 $ 6,176.29 $ 501-095-08 B PRK 1.26 0 $ 269.56 $ 314.50 $ 379.46 $ 432.48 $ 509.47 $ 501-095-09 B PRK 0.38 0 $ 81.30 $ 94.85 $ 114.44 $ 130.43 $ 153.65 $ 501-112-01 B SCH 5.81 0 $ 3,728.97 $ 4,350.53 $ 5,249.22 $ 5,982.67 $ 7,047.65 $ 501-112-05 B PRK 1.8 0 $ 385.09 $ 449.28 $ 542.09 $ 617.83 $ 727.81 $ 501-112-06 B PRK 1.66 0 $ 355.14 $ 414.34 $ 499.93 $ 569.78 $ 671.20 $ 501-112-07 B PRK 0.24 0 $ 51.35 $ 59.90 $ 72.28 $ 82.38 $ 97.04 $ 501-112-08 B PRK 14.23 0 $ 3,044.37 $ 3,551.81 $ 4,285.51 $ 4,884.31 $ 5,753.76 $ 501-112-12 B PRK 0.463 0 $ 99.05 $ 115.56 $ 139.44 $ 158.92 $ 187.21 $ 501-112-13 B SCH 1.297 0 $ 832.44 $ 971.19 $ 1,171.81 $ 1,335.55 $ 1,573.29 $ 501-112-14 B PRK 1.21 0 $ 258.87 $ 302.02 $ 364.40 $ 415.32 $ 489.25 $ 501-112-15 B SCH 0.79 0 $ 507.04 $ 591.55 $ 713.75 $ 813.48 $ 958.29 $ 501-112-16 B PRK 0.45 0 $ 96.27 $ 112.32 $ 135.52 $ 154.46 $ 181.95 $ 501-112-17 B SCH 2.08 0 $ 1,334.99 $ 1,557.50 $ 1,879.24 $ 2,141.82 $ 2,523.08 $ 501-281-35 B SCH 9.901 0 $ 6,354.66 $ 7,413.87 $ 8,945.36 $ 10,195.26 $ 12,010.11 $ 502-451-24 B SCH 3.11 0 $ 1,996.06 $ 2,328.77 $ 2,809.82 $ 3,202.43 $ 3,772.49 $ 502-451-25 B PRK 2.07 0 $ 442.86 $ 516.67 $ 623.40 $ 710.51 $ 836.98 $ 502-451-27 B PRK 2.23 0 $ 477.09 $ 556.61 $ 671.59 $ 765.43 $ 901.68 $ 502-451-28 B SCH 5.07 0 $ 3,254.03 $ 3,796.42 $ 4,580.64 $ 5,220.68 $ 6,150.01 $ 502-451-29 B SCH 1.08 0 $ 693.17 $ 808.70 $ 975.76 $ 1,112.10 $ 1,310.06 $ 502-451-30 B PRK 1.53 0 $ 327.33 $ 381.89 $ 460.77 $ 525.16 $ 618.64 $ 502-451-31 B PRK 3.88 0 $ 830.09 $ 968.45 $ 1,168.50 $ 1,331.77 $ 1,568.84 $ 502-451-32 B SCH 1.1 0 $ 706.00 $ 823.68 $ 993.83 $ 1,132.69 $ 1,334.32 $ 502-453-13 B C/I 1.25 0 $ 802.28 $ 936.00 $ 1,129.35 $ 1,287.15 $ 1,516.28 $ 502-521-07 B SCH 18.335 0 $ 11,767.77 $ 13,729.25 $ 16,565.31 $ 18,879.92 $ 22,240.72 $ 525-022-03 B PRK 2.98 0 $ 637.54 $ 743.81 $ 897.46 $ 1,022.86 $ 1,204.93 $ 2,807.11 COUNTY OF ORANGE 1,906.23 CITY OF TUSTIN 1,614.31 CITY OF TUSTIN 608.95 CITY OF TUSTIN 1,348.85 CITY OF TUSTIN 107.31 CITY OF TUSTIN 6,849.62 CITY OF TUSTIN 565.01 CITY OF TUSTIN 170.40 CITY OF TUSTIN 7,815.96 SCHOOL, TUSTIN UNIFIED DISTRICT 807.16 CITY OF TUSTIN 744.38 CITY OF TUSTIN 107.62 CITY OF TUSTIN 6,381.02 CITY OF TUSTIN 207.62 CITY OF TUSTIN 1,744.80 SCHOOL, TUSTIN UNIFIED DISTRICT 542.59 CITY OF TUSTIN 1,062.76 SCHOOL, TUSTIN UNIFIED DISTRICT 201.79 CITY OF TUSTIN 2,798.14 SCHOOL, TUSTIN UNIFIED DISTRICT 13,319.42 SCHOOL, TUSTIN UNIFIED DISTRICT 4,183.76 TUSTIN UNIFIED SCHOOL DISTRICT 928.23 CITY OF TUSTIN 999.98 CITY OF TUSTIN 6,820.47 TUSTIN UNIFIED SCHOOL DISTRICT 1,452.88 TUSTIN UNIFIED SCHOOL DISTRICT 686.08 CITY OF TUSTIN 1,739.87 CITY OF TUSTIN 1,479.79 TUSTIN UNIFIED SCHOOL DISTRICT 1,681.58 CITY OF TUSTIN 24,665.34 SCHOOL, TUSTIN UNIFIED DIST 1,336.29 CITY OF TUSTIN PETERS CANYON PARK CAMINO REAL PARK HERITAGE PARK HERITAGE PARK LAUREL GLEN PARK Gov owned in FrolI19, open car storage per aerial CITRUS RANCH PARK CITRUS RANCH PARK CITRUS RANCH PARK TUSTIN RANCH ELEM. SCHOOL TUSTIN SPORTS PARK TUSTIN SPORTS PARK TUSTIN SPORTS PARK TUSTIN SPORTS PARK TUSTIN SPORTS PARK TUSTIN RANCH ELEM. SCHOOL TUSTIN SPORTS PARK TUSTIN RANCH ELEM. SCHOOL TUSTIN SPORTS PARK TUSTIN RANCH ELEM. SCHOOL LADERA ELEMENTARY SCHOOL PETERS CANYON ELEM. SCHOOL CEDAR GROVE PARK CEDAR GROVE PARK PETERS CANYON ELEM. SCHOOL PETERS CANYON ELEM. SCHOOL CEDAR GROVE PARK CEDAR GROVE PARK PETERS CANYON ELEM. SCHOOL FIRE STATION PIONEER MIDDLE SCHOOL PIONEER ROAD PARK Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 Appendix C: Maps and Exhibits Boundary Map Landscape Maintenance Exhibit W.T11reI RR-3:32101V Tustin Landscape and Lighting Reassessment District 2025 C -1 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85AO-B59714CF19A8 CITY OF TUSTIN TUSTIN LANDSCAPE AND LIGHTING RE -ASSESSMENT DISTRICT ASSESSMENT DIAGRAM FOR THE 2026-27 FISCAL YEAR BOUNDARY MAP LEGEND BENEFIT AREA A BENEFIT AREA B BENEFIT AREA C CITY BOUNDARY TRACT No. 154174. 500-341-37 THRU 52 (16 TRACT No. IU75: 500-341-01 TIM 21 (21 TRACT No. 15427: 500-341-59 THRU 74 (26 500-211-M 13 THRU 16 REDUCED SCALE 525-161-01 THRU 34 525-161-58 THRU 68 525-171-18 THRU 48 525-172-07 THRU 53 ACT No. 14797 15428 �a 15429�- Ib j. 25-151-01 THRU 75 PETERS TRACT 15601 ors TRACT CANYON 114 UNITS 525-182-01 THRU 42 REGIONAL 525-183-01 THRU 39 f 525-184-01 THRU 33 - PARK RU 91 mars 525-04I-01 THRU 27, 41 THRU 62 TRACT 525-051-01 THRU 40, 7.1 THRU 98 Na.a 14381 525-061-01 THRU 06. 63 THRU 68 and 14746 wrs 525-061-13 THRU 41 �525-071-01 THRU 33 TRACT No. ACT °4 wrs 938-22-301 THRU 500 14567 TRACT 616 THRU 623 AIM m oars 52THRUf�1 525-f31-0f 525-091-01 THRU 43 THRU 65 TENT. TRACT Na 15993 525-141-01 THRU 13 502-/51-/5 "oars 525-1l2-I" T 8 502-451-53 THRU 50 �+s T9�`A566 N0' 1pY0 � Aar TST� A5 � Ial4 AC. dpb TRACT A. 16184 � ? +(fJ` 502-631-01 THRU 12 502-451- 502-01-01 THRU 36 502-632-01 THRU 28 25,27,30,31 502-491-01 THRU 47 502-633-01 THRU 22 amAa 502-W1-01 THRU 47 502-634-01 THRU 18 0irnc PAar TRACT 97M AC No. 15568 a0 oars 502-453-13 raa: srAnOx 502-453-12 Ezsrua www TRACT A. 15565 .tAA CT w um 502-521-07 Ims NJ, Zr 502-471-34 THRU 56 502-522-01 THRU b 502-471-01 THRU 26 ropF IRAg15505 502-461-73 THRU 89 Iad%At 502-471-57 THRU 69 mIgV'Iw7 502-462-04 THRU 28 TRACT 502-461-22 THRU 42 2. 13627 TRACT 502-461-54 THRU 69 4jT7D Na 155M 502-461-01 THRU 21 TRACT Na 15563 TRACT N. is= TRACT n mrs A. 15601 w wrs 501-09316AC. 08 502-511-01 Uuu AC. THRU 44 sa:�r-rs IOavO � watt 501-281-35 amr AO 501-096- 501-171 64 .PA of THRU pp1F I THRU Y6 t� dicer 3pl- TRACT swua TA9yj 501-141- I No. 14189 T 0102,03 aT oars J6T6? t 1l 501-095-12, �T 501-181-01 � p� 74.15 No. 13786 INRU 31 501NRU 91 1� 4oa wrs BRACT r N. u1 4M 501-095-M 83h 1-097-01 1770 /A 938-13-183 THRU 499 TRACT Na 15420 1RRAWCUi2Y! TNRU 51 I mum N. f37M Na. ACT I 501-271-01 THRU 7 fm earrs 501 "1 .7 ura TRACT sae we oar 68No1H1 34-08-417 501-121-01 r THRU 67 4-0THRU 524 PArs P5E0001-0E113-15 THRU 69 TRACT N13796 501-113-13 1- 501-113-18 Idi cafe 16aA AC 14w AG TRACT Na. 13908 SDI-104a-44 934-44-182 THRU 233 I a7 oars 838-22-501 rmw so aaT I 501-131-01 °p"Ir f-1f3-10'1 TRACT Na.14784 and su n THRU 30 50119�7 T-1501-I13-OB fro oars an Aa 501 1113— TRACT 13734 caeaseUS Am Irs IN19 501-1THR70 1 THRU 66 1 501s1� TRACT Na.a 13835 TRACT1557 Aar N. 1370f 9 383 sao Am 301-? jf-04 a_ UW14 934-08-530 THRU 619 Mlraa mum TRACT TRACT Na 1{147 934-08-647 THRU 824 n 1If IO Hera PA�xa TIM � 7 ezensr THRU 04 501-108-01 TRACT N. 14883 1$ 14, 16 THRU 68 ms IAa15 man Aa TRACT 501-104-07 sPwrs"Aa No. 13990 3A7! A TRACT No. 13733 msw sAn7e n oars 934-/4-373 anA swan. 501-107-01 141V 512 501-112-01, 1 THRU 23 In we< 15, R 17 am Aa TRACT 938-13-505 THRU 820 CT Noe TRACTsN4o�13748 nun 13053 71tlM/ 1 15474. rs 15475, TRACT N. 153W 1 1 15427 500-351-01 THRU 14 1'R$ B0u[vAy lla wrs ^� 261-0 g 1WN 14 500-221 :9 Na. 130M 500- 0-2 1- 6 -07 t 1037 262-01 emaA¢ t+ a 500-241-14 Ima At 33 PAarN THRU 18 $d nx AVAsr. TRACT A No, 13161 93/-OB-025 TRACT THRU 169 21 No. 13080 w oars ` PAarTRACT TRACT 500-271-01 + 4} 500-233-01 No. 1098 No. 13030 uals THRU 65 TTRRAACCTT 934-08-175244- 0o rxs,s -13 01 THRU 4 1 500- THIN 860 7 an mrana:s THRU 10 1 TRACT No. TRACT No. TRACT N. 13557 12868 12732 TRACT No. 146" 500-312-01 THRU 04, 500-205-01 500-185-01 THRU 06 W. 05 THRU 10 NRU 775 9TNRU13769 2 s Aa x4Aa Ac KW— b tn,s SW-311-01 r 580- I3- 18h03 02 `�7t� -I ^�b 183- 01 0 82 3 un ewe i T ��A.— l 81844- d TRACT Na 500-182-06 - TRACT N. 15% TRACT 12759 02 500-291-02, 04, 06 THRU 08. Na. 130" SM-191-14 11, 12. 21, 23 THRU 25, 27 500-207-01 4ee vats 500- �_ 4rar0 AG THRU /701 500-206- 181-1 194-01 301 THRU 80 R ,n tars iB 500- $$¢ 101_352_ 0p-181-1 181-03 300011---02 nl 1 S9o� FT) mE win°/ ( T) 101 Progress, Suite 250 — Irvine, CA 92618 PHONE: (949) 655-3900 2\Tustin\FY 26-27\dia7ams\Asmtdmg 2026-27 6aundmydwg 3/31/2025 Docusign Envelope ID: 40401183-034E-4EA7-85AO-B59714CF19A8 REDUCED SCALE CITY OF TUSTIN TUSTIN LANDSCAPE AND LIGHTING RE -ASSESSMENT DISTRICT ASSESSMENT DIAGRAM FOR THE 2026-27 FISCAL YEAR LANDSCAPE MAINTENANCE EXHIBIT LEGEND LANDSCAPE MAINTENANCE SLOPE MAINTENANCE TRACE No. 15474. 500-341-V 7M 52 (16 TRACT No. ,8475: 590-341-01 THRU 21 (21 TRACE No. 15427: 560-34139 TNRU 74 (26 500-211-M 13 s25-161-01 THRU 34 525-161-58 THRU 68 525-171-18 THRU 48 525-172-07 THRU 53 says i 525-151-01 THRU 75 525-041-01 7HRU 27, 41 THRU 62 525-051-01 MR 40, 73 THRU 98 525-O6f-01 THRU 06, 63 THRU 68 525-061-13 THRU 41 525-071-01 THRU 33 \� 938-� 6/6 TNRRU 6623 — 525-091-01 THRU 43 50-481-01 THRU 39 5%-491-01 THRU 47 502-501-01 THRU 47 sn 4c 501-113-f3 501-1f3-f8 II=}3 AG I4M 4G'. 93/-M-182 IHRU 233 � 836-22-50f INRU 596 1 -291-13, 14 0E0 502-471-34 THRU 56 502-471-01 THRU 26 502-461-73 THRU 89 502-471-57 THRU 69 502-462-04 THRU 28 502-461-22 THRU 42 502-461-54 THRU 69 502-461-01 THRU 21 THRU 919 THRU 824 Pill 101 Progress, Suite 250 — Irvine, CA 92618 4 PHONE: (949) 655-3900 R. \Tustin\fY 26-27\diag, m \—tdi g 2026-27 1.dw pe.dwg 3/31/25 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 REDUCED SCALE CITY OF TUSTIN TUSTIN LANDSCAPE AND LIGHTING RE -ASSESSMENT DISTRICT ASSESSMENT DIAGRAM FOR THE 2026-27 FISCAL YEAR LAND USE EXHIBIT LEGEND Residential Commercial Vacant Parks Government Golf Course City Boundary - TRACT No. 15474. 500-341-37 THRU 52 (16 TRACT Ho. 15475. 500-341-01 THRU 21 (21 TRACER. 15427: 500-341-M THRU 74 (26 500-211-M 13 ir 101 Progress, Suite 250 — Irvine, CA 92618 PHONE: (949) 655-3900 525-051-01 THR, 40, 73 THRU 98 525-061-01 THRU 06, 63 THRU 88 525-061-13 THRU 41 525-071-01 THRU 33 \� 936-' 6716 TTMHRU 11 6233 525-091-01 THRU 43 502-481-01 TM 36 502-491-01 THRU 47 502-501-01 THRU 47 502-471-34 THRU 56 502-471-01 THRU 26 502-461-73 THRU 89 502-471-57 THRU 69 502-462-04 THRU 28 502-461-22 THRU 42 502-461-54 THRU 69 502-46"1 THRU 21 0S0 THRU 619 THRU 824 R: \Tustm\FY 26-27\d1agrams\—td* 2026-27 land —dq 313112025 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 Appendix D: Required Contribution Tables Table 1: Required Contribution for Landscaping General Benefit FY26-27 Table 2: Required Contribution for Jamboree Slope Landscaping General Benefit FY26-27 Table 3: Required Contribution for Arterial and Collector Lighting General Benefit FY26-27 Table 4: Required Contribution for Special Benefit to Out of District Parcels FY26-27 Table 5: Required Contribution Summary FY26-27 Tustin Landscape and Lighting Reassessment District 2025 D -1 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 TABLE 1 l ViN IKIBU I IV1N N UK LAf'4UJl .Arl-rSU t-wriNi KAL 15LINLtII r Yltl-1 / STEP TASK DESCRIPTION RESULT l . Determine the amount of the required contribution $70,474 for landscaping general benefit by multiplying the total landscaping square footage of the District times the landscaping general benefit cost per square foot CALCULATIONS Required Contribution for Landscaping General Benefit District Landscaping Area SF x $0.027/SF 2,610,140 SF x $0.027/SF $70,474 * District landscaping area square footage does not include Jamboree Rd slope landscaping square footage because all of the general benefit for the slope landscaping is accounted in the calculation for that landscaping area Tustin Landscape and Lighting Re -Assessment District D - 2 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 STEP TASK DESCRIPTION 1 2 3 TABLE 2 CONTRIBUTION FOR JAMBOFCEE RD SLOPES LANDSCAPING GENERAL 13ENE1'IT FY26-27 RESULT CALCULATIONS Total SF % Share Calculate the Jamboree Rd slope landscaping area as a 6.42% Jamboree Rd Slope Landscape Area 179,032 6.42% percentage of the total landscaping area for the District Remainder of District Landscape Area 2,610,140 93.58% 2,789,172 100.00% Jamboree Rd Slope Landscaping District Costs % of Total Share of Costs Apply result from step 1 to the District landscaping $66,671 Landscape Maintenance $559,360 6.42% $35,904 budget to determine the Jamboree Rd slope landscaping Tree Trimming Contract $268,000 6.42% $17,202 cost of services. Electric $11,000 6.42% $706 Water $187,000 6.42% $12,003 Architect/Eng Services $13,327 6.42% $855 $1,038,687 $66,671 Identify the amount of the required contribution for $66,671 Required Contribution for Jamboree Rd Slope Landscaping General Benefit Jamboree Rd slope landscaping general benefit from the result of step 3 Tustin Landscape and Lighting Re -Assessment District D - 3 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 TABLE 3 KLVU1KLU UU1N 1KIISU l MIN N'UK AKILKIAL LIGIIII.NLi liLiNLKAL BLiNLN'II r'YL6-L7 STEP TASK DESCRIPTION RESULT CALCULATIONS No. of Lights Total Lumens % Share I . Determine the lumens from arterial lighting as a percentage 67.99% Arterial Lights (6,550 Lumens) 375 2,456,250 67.99% of the total lumens from all District lighting Collector Lights (6,550 Lumens) 11 72,050 1.99% Collector Lights (2,900 Lumens) 283 820,700 22.72% Local Residential Lights 91 263,900 7.30% Total District Lights 760 3,612,900 100.00% District Lighting Budget 2. Apply results from step 1 to the District lighting budget to $83,332 % Share Share of Costs determine the arterial lighting portion of District lighting Arterial Lighting Cost 67.99% $83,332 cost of service Collector Lighting Cost 24.71 % $30,288 Local Lighting Cost 7.30% $8,953 Total District Lighting Cost 100.00% $122,573 Lumens % Share 3. Calculate the percentage of lumens from 6,550 lumen lights 55.73% Special Benefit 2,900 44.27% that provide general benefit with a baseline of 2,900 lumens General Benefit 3,650 55.73% representing the special benefit portion of such lights 6,550 100.00% Arterial Lighting 4. Multiply the results from steps 2 and 3 to determine the $46,437 % of Total Cost portion of the arterial lighting costs attributable to General Benefit Share 55.73% $46,437 general benefit portion of the illumination provided by Special Benefit Share 44.27% $36,895 the 6,550 lumen arterial lights Arterial Lighting Cost 100.00% $83,332 5. Identify the amount of the required contribution for $46,437 Required Contribution for Arterial Lighting General Benefit arterial lighting general benefit from the reasult of step 4 Tustin Landscape and Lighting Re -Assessment District D - 4 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 Nr,i10DKI! UU1N IKIBU I IU1N tUK NYEUTAL IfE1NEr'1'l''lU UU 1 UrDIN IKIC I YAKUELN N'YL6-L7 STEP TASK DESCRIPTION 1. Browning Ave Landscaping Budget 2. Allocate Browning Ave Landscape Budget to the District and to the area outside of the District based on total equivalent dwelling units and share of the Browning Ave landscaping cost of services that is attributable to the area that is outside of the District 3. Identify the amount of the required contribution for special benefit to parcels located outside of the District from the result of step 3 RESULT CALCULATIONS Browning Ave Landscaping $63,099 Regular Landscape Maintenance $43,052 Irrigation Repairs $5,465 Water $13,559 Electrical $1,023 $63,099 $1,868 EDUs* Allocation % Service Cost District Share 7,690.42 97.04% $61,232 Out of District Share 234.55 2.96% $1,868 Total 7,924.97 100.00% $63,099 $1,868 Required Contribution for Special Benefit to Out of District Parcels * Section 4 details on the EDU's that receive landscaping benefit. Appendix E for details on the EDU's for Out of District Share Tustin Landscape and Lighting Re -Assessment District D - 5 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 TABLE 5 UU1NIKIBUIWIN NU1V MAKY NY Lb-L/ REQUIRED CONTRIBUTION FOR GENERAL BENEFIT Required Contribution for Arterial and Collector Lighting General Benefit Required Contribution for Landscaping General Benefit Required Contribution for Jamboree Rd Slope Landscaping General Benefit REQUIRED CONTRIBUTION FOR SPECIAL BENEFIT Required Contribution for Special Benefit to Out of District Parcels AMOUNT $46,437 $70,474 66 671 Total Required Contribution for General Benefit $183,582 Total Required Contribution for Special Benefit Total Required Contribution for General and Special Benefit AMOUNT 1 868 $1,868 $185,450 Tustin Landscape and Lighting Re -Assessment District D - 6 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 Appendix E: Special Benefit to Parcels Outside the District TABLE 1 APN Owner Name Site Address Landuse 103-261-01 SCHOOL, TUSTIN UNIFIED DISTRICT 13601 BROWNING AVE SCH 103-421-01 SWANSON, DAVID E TR D E 13271 CHIRPING SPARROW WAY SFR 103-421-02 BERGE, MARGARET W TR 13291 CHIRPING SPARROW WAY SFR 103-421-03 JONES, PAUL D II TR JONES 13301 CHIRPING SPARROW WAY SFR 103-421-04 HEGWOOD, MATTHEW WALKER TR HEGWOOD REVOC LIVING 13321 CHIRPING SPARROW WAY SFR 103-421-05 MAXWELL, SHELLY TR THE S 13331 CHIRPING SPARROW WAY SFR 103-421-06 HOFFMAN, JUDITH K TR 13351 CHIRPING SPARROW WAY SFR 103-421-07 WILKE, WERNER 13361 CHIRPING SPARROW WAY SFR 103-421-08 SAMSON, JENNIFER LAM & DEREK MICHAEL 1872 BURNT MILL RD SFR 103-421-09 SHEAK, WILLIAM J 1892 BURNT MILL RD SFR 103-421-10 SANCHEZ, AIYSON LEE & LEONARD T 1902 BURNT MILL RD SFR 103-421-11 MCCOY, KATHLEEN M TR THE 1912 BURNT MILL RD SFR 103-421-12 COATE, EARL O 1922 BURNT MILL RD SFR 103-421-13 INTARAJIT, ARKARNIT TR 1942 BURNT MILL RD SFR 103-421-14 WESTCOTT, DAVID W SR TR 1952 BURNT MILL RD SFR 103-421-15 VU, QUYNH-CHI 1972 BURNT MILL RD SFR 103-421-33 TAYLOR, JEFFERY L TR 1922 RED MILL CIR SFR 103-421-34 HOGAN, CHRISTOPHER SCOTT TR THE HOGAN LIVING TR 1942 RED MILL CIR SFR 103-421-36 ROBERTS, HARLEY ROCK TR 13451 BROWNING AVE SFR 103-421-37 JONES, LARRY W & JANINE M 1972 RED MILL CIR SFR 103-422-01 KEEFE, JONATHAN M TR J & 1971 BURNT MILL RD SFR 103-422-02 EISEMAN, GREGORY BAIN SR & TENEA SHANEE 1951 BURNT MILL RD SFR 103-422-03 OZERAN, DAVID J TR OZERAN 1941 BURNT MILL RD SFR 103-422-04 COOK, CHANDLER 1921 BURNT MILL RD SFR 103-422-05 THOMAS, SHERRY DIANE TR 1901 BURNT MILL RD SFR 103-422-06 HAM, VICTOR TR 1871 BURNT MILL RD SFR 103-422-07 LATIMER, NANCY M TR N 13352 CHIRPING SPARROW WAY SFR 103-422-08 CAPORICCI, BRIAN JAMES TR 13332 CHIRPING SPARROW WAY SFR 103-422-09 LADNER, ERNEST C JR TR 13322 CHIRPING SPARROW WAY SFR 103-422-10 STONE, MAUREEN ELIZABETH TR 13302 CHIRPING SPARROW WAY SFR 103-422-11 OWENS, MICHAEL DAVID & LESLIE MARIE 13292 CHIRPING SPARROW WAY SFR 103-422-12 SLEIMAN, ELIE & ROBERTA 13272 CHIRPING SPARROW WAY SFR 103-422-13 SMART, TONETTE M 13271 BUBBLING WELL RD SFR 103-422-14 MONTE, ERIC M TR E M 13291 BUBBLING WELL RD SFR 103-422-15 ALPUERTO, TERESA P 13301 BUBBLING WELL RD SFR 103-422-16 LIN, JEFFREY SHIHHAN 13321 BUBBLING WELL RD SFR 103-422-17 KHALIL, NABILA S 13331 BUBBLING WELL RD SFR 103-422-18 THOMAS, LARRY ARLEN TR 13336 BUBBLING WELL RD SFR 103-422-21 SALAZAR, JESSIE TR DOUBLE 13326 BUBBLING WELL RD SFR 103-422-22 PURECO, NATHAN 13322 BUBBLING WELL RD SFR 103-422-23 GRUJEVSKI, NEDELKO TR N 13302 BUBBLING WELL RD SFR 103-422-24 GETTEN, MARY B TR 13292 BUBBLING WELL RD SFR 103-422-25 LEOS, JOSEPH TR 13272 BUBBLING WELL RD SFR 103-422-26 GAIER, DENNIS B & VONDA BOOKER 1972 RIVERFORD RD SFR 103-422-27 JIANG, QINFEN 13344 BUBBLING WELL RD SFR 103-422-28 GAPASIN, ARTHUR U & BELINDA S 13340 BUBBLING WELL RD SFR 103-423-01 MAYHEW, MICHAEL S 1971 RIVERFORD RD SFR 103-423-02 HOUNCH, COLLEEN 1951 RIVERFORD RD SFR 103-423-03 PRIETTO, VINCENT L & LAURA L JOHNSTON 1931 RIVERFORD RD SFR 103-423-04 FIELDS, RICHARD V A TR 1921 RIVERFORD RD SFR 103-423-05 VAN HYNING, ROBERT 1901 RIVERFORD RD SFR 103-423-06 GENTRY, ERIC 1891 RIVERFORD RD SFR 103-423-07 THORNHILL, BEN TR 1871 RIVERFORD RD SFR 103-423-08 CAPORICCI, CHRISTOPHER & MEGAN 1861 RIVERFORD RD SFR 500-071-02 VELAZQUEZ, JOSE 1862 SIERRA VISTA DR SFR 500-071-03 DE SILVA, CHARLES A N & CARMEN A L 1872 SIERRA VISTA DR SFR 500-071-04 DE GROOT, ARTHUR R TR 1892 SIERRA VISTA DR SFR 500-071-05 BISSON, HISA TR THE H 1902 SIERRA VISTA DR SFR 500-071-06 TRAN, XUAN MANH TR THE X 1912 SIERRA VISTA DR SFR 500-071-07 FETSCHER, LOU ANNE TR 1932 SIERRA VISTA DR SFR 500-071-08 DUNHAM, MARK ELLIOTT 1942 SIERRA VISTA DR SFR 500-071-09 FARIN, REMIGIO M & KRISTIN 1962 SIERRA VISTA DR SFR 500-071-10 BRIONES, LORELEI TR 13921 BROWNING AVE SFR Tustin Landscape and Lighting Reassessment District 2025 E -1 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 APN ON+ner Name Site Address Landuse 500-072-01 RODRIGUEZ, SIMON 1871 SIERRA VISTA DR SFR 500-072-02 LWIN, MYINT TR THE LWIN 13881 KAREN WAY SFR 500-072-03 TERANISHI, TEPPEI & JENNA 13871 KAREN WAY SFR 500-072-04 LUU, BRYAN 13861 KAREN WAY SFR 500-072-05 HEREDIA, CESILIA 1862 JAN MARIE PL SFR 500-072-06 MORE2LIFE AT DOS VIENTOS LLC 1872 JAN MARIE PL SFR 500-073-01 POTTS, BRENT JEFFREY 1901 SIERRA VISTA DR SFR 500-073-02 LANNON, VAN KHANH TR THE 1911 SIERRA VISTA DR SFR. 500-073-03 WILSON, INEZ M TR WILSON 1931 SIERRA VISTA DR SFR 500-073-04 GOMEZ, DAVID & RAFAELA 1941 SIERRA VISTA DR SFR 500-073-05 DEMONT, REMY CLAUDE TR 1961 SIERRA VISTA DR SFR 500-073-06 ROBERTSON, DONALD JAMES TR ROBERTSON FAMILY TR 13901 BROWNING AVE SFR 500-073-07 HOTCHKISS, GLENN & DEBORAH 13861 BROWNING AVE SFR 500-073-08 WEISER, IRVING B TR 13891 BROWNING AVE SFR 500-073-09 DUONG LONG PHAM HOANG 13872 KAREN WAY SFR 500-073-10 ORTEGA, MIKE V & LAURA J 13862 KAREN WAY SFR 500-073-11 GALLEGOS, MARY D & TITO W 1902 JAN MARIE PL SFR 500-073-12 FAIRLEY, CATHERINE 1912 JAN MARIE PL SFR 500-073-13 TUGGY, VICKI A TR V A 1922 JAN MARIE PL SFR 500-073-14 NGUYEN, MAI THANH TR 1932 JAN MARIE PL SFR 500-073-15 JIVAN, MARIUS TR M JIVAN 1942 JAN MARIE PL SFR 500-073-16 STEINBERG, SCOTT TR THE 1952 JAN MARIE PL SFR 500-073-17 BARRETT, LEON TR 1972 JAN MARIE PL SFR 500-074-01 SATO, LISA MARIE & SCOTT TERUO 1861 JAN MARIE PL SFR 500-074-02 STAMM, MARY C ADMIN RICHARD D STAMM ESTATE 1871 JAN MARIE PL SFR 500-074-03 ANDRADE, MAGDALENA 1881 JAN MARIE PL SFR 500-074-04 YANG, BEILI 1901 JAN MARIE PL SFR 500-074-05 SHAH, NARENDRA 1911 JAN MARIE PL SFR 500-074-06 NGUYEN, THINH VAN 1921 JAN MARIE PL SFR 500-074-07 HIGINIO, WILBER E 1931 JAN MARIE PL SFR 500-074-08 CRUZ, CESAR M 1941 JAN MARIE PL SFR 500-074-09 WOHLAND, IMELDA RATNA & DEREK LEE 1951 JAN MARIE PL SFR 500-074-10 REYNOLDS, GREG & KAREN 1971 JAN MARIE PL SFR 933-79-002 GILBERT, CRAIG & ZSA-ZSA 13761 BROWNING AVE 2 MFR 933-79-003 SPURLOCK, RYAN 13765 BROWNING AVE 3 MFR 933-79-004 MULRY, JUDITH E TR 13771 BROWNING AVE 4 MFR 933-79-005 SUNDQUIST, MARJORIE A TR 13781 BROWNING AVE 5 MFR 933-79-006 LIM, ANDY P 13785 BROWNING AVE 6 MFR 933-79-007 EILAND, MARIE L TR M 13791 BROWNING AVE 7 MFR 933-79-008 MAUSS FAMILY TRUST THE & REBECCA J 13801 BROWNING AVE 8 MFR 933-79-009 TSE, LORRAINE TR WINGS 13805 BROWNING AVE 9 MFR 933-79-010 DENIS, ZACHARY DAVID & REBECCA RAE 13811 BROWNING AVE 10 MFR 933-79-011 TRUJILLO, ANTONIO F TR 1984 SAN JUAN ST 11 MFR. 933-79-012 MILLER, MATTHEW RANDALL TR 1982 SAN JUAN ST 12 MFR 933-79-013 SMITH, FRANZEEMA G 1974 SAN JUAN ST 13 MFR 933-79-014 SOLIMAN, RUBYLIN S 1972 SAN JUAN ST 14 MFR 933-79-015 LIMBO, HAZEL D & BEANIE A 1964 SAN JUAN ST 15 MFR 933-79-016 SMOTHERMON, DAVID L TR 1962 SAN JUAN ST 16 MFR 933-79-017 LEE, CHRISTINE 1954 SAN JUAN ST 17 MFR 933-79-018 GABELL, ANDREW & ELAINE M 1952 SAN JUAN ST 18 MFR 933-79-019 RESTREPO, JOHN 1944 SAN JUAN ST 19 MFR 933-79-020 MILLER, ADAM & DESIREE 1942 SAN JUAN ST 20 MFR 933-79-021 YOKOYAMA, JEFFREY S 1934 SAN JUAN ST 21 MFR. 933-79-022 SALINAS, JOHN M TR THE 1932 SAN JUAN ST 22 MFR. Tustin Landscape and Lighting Re -Assessment District D - 2 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 TABLE 2 OUT OF DISTRICT PARCELS EDU SUMMARY Land Use Parcels Dwellings Acres EDU's Single Family Residential 95 97 0.000 97.000 Multi -family Residential 21 21 0.000 15.750 Non -Residential 0 0 0.000 0.000 Schools 1 0 20.300 121.800 Golf Course 0 0 0.000 0.000 Public Parks 0 0 0.000 0.000 Total 117 118 20.300 234.550 Tustin Landscape and Lighting Re -Assessment District D - 3 September 3, 2025 Engineer's Report, FY2026-27 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 ATTACHMENT 3 Sample Notice of Public Hearing, Ballot, and Brochure Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 Notice of Public Hearing Proposed Tustin Landscape and Lighting Reassessment District 2025 Benefit Area (A, B, C) City of Tustin I. Notice This notice informs you, as a record owner of property within the existing Tustin Landscape and Lighting District (the "District' or the "Existing District'), which was formed in 1985, of a proposed reassessment to the Existing District, hereafter referred to as Tustin Landscape and Lighting Reassessment District 2025 (the "Proposed District'). The purpose of the Proposed District is to establish new assessments for Fiscal Year 2026/27 and beyond that recover sufficient revenue to fund the landscape and lighting costs that benefit properties within the District boundaries. The Proposed District and related assessment would replace the existing assessment. The Existing District is running an annual deficit, which is being covered from remaining cash on hand from the previous bond that was used to install the District landscape and lighting improvements. When those funds were depleted, maintenance and services for the District were reduced. The proposed assessments of the Proposed District will cover the ongoing annual landscape maintenance and lighting costs of the Proposed District and restore and maintain the level of service previously provided. The City Council of the City of Tustin adopted a Resolution of Intention declaring its intention to establish the Proposed District and a Notice of Assessment and Assessment Ballot has been mailed to each affected parcel at least 45 days prior to the City holding a Public Hearing on the Proposed District. The Public Hearing has been scheduled for November 18, 2025. If the Proposed District is approved by the property owners, the new assessments will replace the existing assessments and the Existing District will be dissolved. This will NOT be an additional assessment. The Public Hearing will be held during a regular meeting of the City of Tustin City Council on November 18, 2025, at 6:00 p.m. Members of the public are welcome to participate in the Public Hearing for the Proposed District and corresponding assessments on Tuesday, November 18, 2025 at 6:00 pm. Property owners may submit their assessment ballot to the City Clerk at any time prior to the close of the Public Hearing through Mail Delivery or In -Person Delivery. Persons who wish to submit an assessment ballot should mail or personally deliver it as shown on the back of this notice and in accordance with the directions provided on the back of the ballot under "Summary of Assessment Ballot Procedures". Mail Delivery: If by mail, place the ballot in the mail with sufficient time to be received no later than November 18, 2025. If your ballot is not received by this date, the ballot will not be counted. Please note that postmarks cannot be accepted. Please mail the ballot to: City of Tustin Attn: City Clerk 300 Centennial Way Tustin, CA. 92780 Personal Delivery: The ballot may also be delivered directly to the City Clerk on or before the close of the Public Hearing. Ballots can be placed in the secured box located at the main entrance to City Hall before 6:00 p.m. on November 18, 2025. Ballots will also be accepted at the Clifton C. Miller Community Center beginning at 6:00 p.m. on November 18, 2025 and through the end of the Public Hearing. Both sites are located within the Tustin Civic Center, 300 Centennial Way, Tustin CA, 92780. All interested persons are invited to attend the Public Hearing and express opinions on the matter of the Proposed District and corresponding assessments. You will have an opportunity to speak in favor of, or opposed to, the proposed new assessment during the meeting by submitting a "Request to Speak" form, which can be accessed online by visiting https://cityoftustin.seamlessdocs.com/f/publicinput. Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 You are encouraged to complete the Request to Speak form prior to the start of the meeting. Verbal comments alone do not qualify as a formal protest against, or formal support for the proposed new assessment. Your formal position on the assessment is established by completing and submitting your assessment ballot. You can learn about participating in a virtual public meeting and how to connect to the meeting by telephone or computer by going online and visiting https://www.tustinca.org/DocumentCenter/View/4729/PUBLIC-INPUT-INSTRUCTIONS. II. Assessment Information 1. Name of Assessment: Tustin Landscape and Lighting Reassessment District 2025 2. Total Proposed Assessment for the Entire Proposed District:: 5,704 parcels assessed totaling $975,832.20 for FY26-27 3. Your Proposed Total Assessment: The City is phasing in assessment rate increases over a five-year period. The proposed maximum assessment on your property for the five (5) year implementation is shown on your assessment ballot based on the proposed assessment rate per Equivalent Dwelling Unit (EDU) per benefit area shown below: Year 1 Year 2 Year 3 Year 4 Year 5 BENEFIT AREA A Current FY26-27 FY27-28 FY28-29 FY29-30 FY30-31 Existing Rate per EDU $7.58 Proposed Rate per EDU $7.81 $8.63 $9.46 $10.42 $11.45 Annual Increase ($) $0.23 $0.82 $0.83 $0.96 $1.03 Annual Increase (%) 3.03% 10.50% 9.62% 10.15% 9.88% Year Year Year Year Year BENEFIT AREA B Current FY26-27 FY27-28 FY28-29 FY29-30 FY30-31 Existing Rate per EDU $106.97 Proposed Rate per EDU $124.80 $150.58 $171.62 $202.17 $224.21 Annual Increase ($) $17.83 $25.78 $21.04 $30.55 $22.04 Annual Increase (%) 16.67% 20.66% 13.97% 17.80% 10.90% Year 1 Year 2 Year 3 Year 4 Year 5 BENEFIT AREA C Current FY26-27 FY27-28 FY28-29 FY29-30 FY30-31 Existing Rate per EDU $140.01 Proposed Rate per EDU $149.06 $177.40 $201.02 $234.53 $259.78 Annual Increase ($) $9.05 $28.34 $23.62 $33.51 $25.25 Annual Increase (%) 6.46% 19.01% 13.31% 16.67% 10.77% 4. Duration of the Proposed Assessment: The new assessment to maintain and service district improvements is proposed to be levied every year, with annual adjustments for inflation connected to 3% plus the Consumer Price Index (CPI) after year 5, commencing in fiscal year 2026-27 and continuing until such time as the City no longer maintains the district improvements. 5. Reason for the Proposed Tustin Landscape and Lighting Reassessment District 2025: To replace the Existing District in order to ensure the long-term health and sustainability of the District improvements by establishing new proposed assessments on benefiting parcels and to comply with current assessment laws and regulations. 6. Calculation of the Assessment: If approved, the proposed new assessment will be levied on parcels that receive direct and special benefit from maintaining and servicing the landscaping and street lighting improvements in the district and the Proposed District will replace the Existing District. If there is a majority protest against the proposed new assessments, the Proposed District will not be formed and the Existing District and related assessments will continue to be levied on your parcel. The amount of the proposed reassessment is calculated based upon the proportional special benefit received by each parcel to be assessed. The exact method and formula of spreading the assessment is set forth in the Assessment Engineer's Report for the Proposed District, a copy of which is on file with the City Clerk and available for review. The assessment shown on the ballot is the maximum amount that can be charged commencing in Fiscal Year 2026-27. The maximum assessments will be ramped -up over 5 years in order to restore and maintain the level of service previously Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 provided. After the 5 year period the maximum assessment amount will be adjusted annually by 3% plus the annual change in the Consumer Price Index (CPI) for All Urban Consumers, for the Los Angeles -Long Beach -Anaheim areas. The actual assessments levied in any fiscal year will be as approved by the City Council and may not exceed the maximum assessment rate without receiving property owner approval for an increase. 7. Assessment Balloting Results: If 50% or more of the weighted assessment ballots returned are in favor of the new assessments associated with the Proposed District, the new maximum assessment shown on the enclosed ballot may replace the existing assessment levied on your property. If a majority of the ballots returned are opposed to the new assessments associated with the Proposed District, the proposed new assessment will not be imposed, and the existing assessment will continue to be levied on your property. Assessment Ballots are weighted proportionally by each parcel's proposed assessment amount (simplified, this means 1 vote for each $1 of proposed new assessment). III. Questions Regarding These Proceedings If you have any questions about this process, please contact Elsa Robinson in the Public Works Department of the City at (714) 573-3030. Please leave a message with your name and phone number, and your call will be returned. Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 • City of Tustin Attn: City Clerk 300 Centennial Way Tustin, CA 92780 <Owner> <Mail Address> <Mailing City, State Zip> OFFICIAL ASSESSMENT BALLOT CITY OF TUSTIN Tustin Landscape and Lighting Reassessment District 2025 Assessor's Parcel Number: Property Address: Benefit Area: Existing Maximum Assessment: Proposed Maximum Assessment: <asmt5> The person completing and submitting this assessment ballot must be the record owner of the property identified above or the representative of the record owner of such property who is legally authorized to complete and submit this ballot for and on behalf of the record owner. Please see "Summary of Assessment Ballot Procedures" on the back of this ballot for assistance in filling out the ballot. If there are two or more property owners, only one needs to sign and return the ballot. Please mark your ballot in ink. Do not use pencil. Upon completion, fold the assessment ballot, place it in the return envelope provided and seal the envelope. Mail or deliver the assessment ballot to the address shown on the return envelope pursuant to the instructions on the back of this ballot. Please see the "Summary of Assessment Ballot Procedures" on the back of this sheet. For additional information about the Tustin Landscape and Lighting Reassessment District 2025 (the "Proposed District"), please see the enclosed legal notice. X Please cut along this line, fold the ballot, seal in the provided envelope, and return to the City Clerk X PROPERTY OWNER ASSESSMENT BALLOT Assessor's Parcel Number: Property Owner(s): FM New Maximum Assessment for this Parcel: OYES, ❑ I am IN FAVOR of the proposed new maximum assessments for the next 5- <yes barcode> year period for the Proposed District to replace the existing assessment of Tustin J Landscape and Lighting District and provide continued landscape and lighting maintenance services, including an annual escalation factor based on 3% plus the Jannual Q change in CPI-U Los Angeles -Long Beach -Anaheim each year thereafter. <No barcode> NO, I am OPPOSED to the proposed new maximum assessments for the next 5- year period for the Proposed District to replace the existing assessment of Tustin Landscape and Lighting District and provide continued landscape and lighting M maintenance services, including an annual escalation factor based on 3% plus the W annual change in CPI-U Los Angeles -Long Beach -Anaheim each year thereafter. The undersigned certifies under penalty of perjury that the undersigned is entitled to complete and submit this assessment ballot. Signature of person completing assessment ballot Print name of person completing assessment ballot Date signed Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 PROPOSED TUSTIN LANDSCAPE AND LIGHTING REASSESSMENT — FIVE YEAR IMPLEMENTATION Year 1 FY 26-27 Year 2 FY 27-28 Year 3 FY 28-29 Year 4 FY 29-30 Year 5 FY 30-31 <asmtI> <asmt2> <asmt3> <asmt4> <asmt5> SUMMARY OF ASSESSMENT BALLOT PROCEDURES If you are the owner of the property described on the Assessment Ballot, or the authorized representative of the record owner, you may submit the enclosed ballot to the City to support or oppose the new maximum assessment associated with the Proposed District. Please follow the instructions below to complete and return your ballot. Register your vote on the enclosed ballot in favor or against the proposed changes by placing an "X" in the corresponding box. 2. Mark, sign and date your ballot in pen. (Assessment Ballots received without a signature will not be counted.) Please do not use pencil. 3. Place your completed ballot into the return envelope provided and seal the envelope. 4. If you are mailing the ballot, apply postage and mail your Assessment Ballot to the City Clerk of the City of Tustin, at 300 Centennial Way, Tustin, CA 92780. 5. The City must receive mailed Assessment Ballots by November 18, 2025. Postmarks will not be accepted. 6. Ballot may also be delivered directly to the City Clerk on or before the close of the Public Hearing. Ballots can be placed in the secured box located at the main entrance to City Hall before 6:00 p.m. on November 18, 2025. Ballots will also be accepted at the Clifton C. Miller Community Center beginning at 6:00 p.m. on November 18, 2025, through the end of the Public Hearing. Both sites are located within the Tustin Civic Center at 300 Centennial Way, Tustin, CA 92780. 7. Any ballots received after the close of the Public Hearing cannot legally be counted. 8. Following the close of the Public Hearing, the City Clerk or designee will tabulate the Assessment Ballots received. The ballots are weighted by the assessment amount for each property (simplified, this means one vote per each dollar of proposed assessment). 9. The new Proposed District and assessments may be confirmed unless a majority protest exists. A majority protest exists if, upon the close of the Public Hearing, the total assessments of received ballots submitted in opposition to the Proposed District exceeds the total assessments of received ballots submitted in favor of the Proposed District. 10. If a majority protest exists, the Proposed District will not be confirmed and the existing District will remain in effect and continue to be levied in Fiscal Year 2026/27. 11. If a majority protest does not exist, the Proposed District and new assessments, if approved by City Council, will be levied in Fiscal Year 2026/27 as detailed in the Engineer's Report. Assessment ballots that are submitted for tabulation shall remain on file with the City Clerk for at least two years, shall become part of the public record and shall become subject to public disclosure. The information in this notice and the accompanying materials were compiled and are distributed at public expense by the City of Tustin in compliance with Proposition 218. This information is presented in the public interest. It is not intended to influence or attempt to influence the actions of the property owners to cast ballots in favor or against the Proposed District and related assessments. �0 Doc usign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 METITVr. .wk Notice of Public Hearing and ' IU�IIN Assessment Ballot Procedures Next Steps r Included with this mailing is the official A Proposition 218 ballot for your property h y detailing the proposed assessment and a; its impact. Also included is the Notice of .. Public Hearing and Assessment Ballot K. Procedures. Highlights of the upcoming process include: • A public hearing on Tuesday,�'��,�`' F November 18, 2025, where property owners can provide input and submit ballots • Tabulation of ballots after the public hearing and a determination of the result based on the ballots received. The City remains committed to long- ' a term fiscal stability and continuing to provide effective, high -quality services that foster safety, quality of life, and a�s economic vitality throughout our v . community. Additional details, including a° a full rate breakdown and assessment . impact on property owners, are included with the ballot materials. Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 proposed Reassessment District •. ■■Nv ■J �■■fir ■ MJ�■■. �M■■MJrM�..r p Use of Funds &Special Benefits and Lighting District (District)? and Ballot Process to Property Owners The District was formed in 1985 to fund street lighting and landscape maintenance activities in Tustin Ranch. All single-family homes, apartments, condominiums, shopping centers, and vacant land pay an annual assessment through their property tax bill to ensure the District looks its best. Funds are used for ongoing maintenance ( r �11 and improvement of Landscaping and Lighting along public streets within Tustin Ranch. District's Financial Condition Since 2021, services have been reduced to stretch revenues, but expenses continue to rise, leaving the District without funds for routine maintenance and improvements. 1997-2025 *CPI = Consumer Price Index To address the increased maintenance costs, the City proposes to increase assessments through the formation of a new assessment district for property owners within the existing District. This new assessment district is subject to approval under state law Proposition 218, which requires property owners to vote on the proposed change thrr gh an official ballot process. tr. 7 N, operty owners, funds go directly into id'an only be used to ants within Tustin Ranch. With increased revenue, the City will be able to restore service levels and complete improvement projects in your neighborhood, such as: Replacing Expanding dead plants irrigation for and trees healthier Landscaping T Y Restoring Maintaining regular pathway tree lighting for trimming safety W 4;k More Repair & frequent replacement weed and of litter removal infrastructure