HomeMy WebLinkAbout01 ADOPT RESOLUTION NO. 25-74 FORMING AND LEVYING ASSESSMENT WITHIN THE TUSTIN LANDSCAPE AND LIGHTING DISTRICTDocusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3
MEETING DATE
TO:
FROM:
SUBJECT:
SUMMARY:
Agenda Item 1
Initial
AGENDA REPORT Reviewed: Q`�S
City Manager
Finance Director
DECEMBER 2, 2025
ALDO E. SCHINDLER, CITY MANAGER
MICHAEL GRISSO, DIRECTOR OF PUBLIC WORKS
ADOPT RESOLUTION NO. 25-74 FORMING AND LEVYING
ASSESSMENT WITHIN 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 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. On September 16, 2025, the City Council approved the Engineer's Report for
the Levy of Annual Assessments for the Tustin Landscape and Lighting Reassessment
District 2025 and set a public hearing for December 2, 2025. At the close of the public
hearing, all returned ballots will be tabulated to determine if there is sufficient property owner
support for creating Tustin Landscape and Lighting Reassessment District 2025.
RECOMMENDATION:
It is recommended that the City Council:
Conduct a public hearing to receive public input on the formation of Tustin Landscape
and Lighting Reassessment District 2025 and associated assessments to be levied for
Fiscal Year 2026-2027; and
2. After tabulation of all returned ballots, and if a majority in support the formation of Tustin
Landscape and Lighting Reassessment District 2025, adopt Resolution No. 25-74.
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
Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3
City Council Agenda Report
Public Hearing to form TLLD Reassessment District 2025
December 2, 2025
Page 2
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
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 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
Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3
City Council Agenda Report
Public Hearing to form TLLD Reassessment District 2025
December 2, 2025
Page 3
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. An Engineer's Report was
prepared by Harris & Associates and approved by the City Council on September 16, 2025.
As part of that action, the City Council set a public hearing to receive public testimony
regarding the formation of the Tustin Landscape and Lighting Reassessment District 2025
for December 2, 2025.
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
Intentionally left blank.
Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3
City Council Agenda Report
Public Hearing to form TLLD Reassessment District 2025
December 2, 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
Notices of the public hearing, accompanied by the assessment ballot materials, were mailed
to the District's registered property owners 45 days prior to this public hearing. To be counted,
ballots must be returned to the City Clerk prior to the conclusion of the public hearing, which
will be held at 6:00 p.m. on December 2, 2025, or as soon thereafter as the matter may be
heard. After receiving public input, the public hearing will be closed, assessment ballots will
be tabulated, and staff will announce the results. Should a majority of the ballots submitted
support the formation of the Reassessment District, the City Council may consider adoption
of Resolution No. 25-74. Should a majority of ballots not support the formation of the
Reassessment District, no further action may be taken.
Michael Grisso
Director of Public Works
Attachments:
1. Resolution No. 25-74
2. Tustin Landscape and Lighting Reassessment District 2025 Map
Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3
ATTACHMENT 1
Resolution No. 25-74
Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3
RESOLUTION NO. 25-74
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA APPROVING THE FORMATION OF TUSTIN LANDSCAPE AND
LIGHTING REASSESSMENT DISTRICT 2025 AND CONFIRMING THE ANNUAL
ASSESSMENTS FOR FISCAL YEAR 2026-2027
WHEREAS, the City Council by Resolution No. 25-54 initiated proceedings for the
formation of the Tustin Landscape and Lighting Reassessment District 2025 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 the California Constitution
Article XIIID (Constitution), 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 engineer
to prepare and file a report in accordance with Article 4 (commencing with Section 22565)
of Chapter 1 of the Act; and
WHEREAS, Harris & Associates, as the Engineer of Work prepared and filed an
Engineer's 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
Constitution; and
WHEREAS, the City Council, through adoption of Resolution No. 25-54 approved
the Engineer's Report; and
WHEREAS, the City Council set the time and place for a Public Hearing to consider
the formation of the District and for the authorization to levy annual assessments therein.
The City council also ordered a notice of Public Hearing, accompanied by assessment
increase ballots, be given to the record owners of all properties within the District; and
WHEREAS, notice of said Public Hearing accompanied by assessment formation
ballots were mailed to the record owners of all properties within the District forty-five (45)
days in advance of the Public Hearing, and
WHEREAS, the City Council hereby finds that the assessment ballots submitted
opposed to the formation Tustin Landscape and Lighting Reassessment District 2025 did
not exceed or equal the assessment ballots submitted in support. Therefore, a majority
protest to the formation of the District does not exist.
Resolution 25-74
Page 1 of 3
Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3
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.
SECTION 2. The City Council hereby finds and determines that the procedures
for the consideration of the formation of Tustin Landscape and Lighting Reassessment
District 2025 have been undertaken in accordance with State Law.
SECTION 3. Assessment ballots were mailed as required by law to the record
owners of all properties proposed to be assessed within the District. The assessment
ballots that were completed and received by the City Clerk prior to the close of the Public
Hearing have been tabulated in accordance with State Law, and the results have been
submitted to the City Council.
SECTION 4. The City Council hereby finds that the assessment ballots submitted
opposed to the formation of the Tustin Landscape and Lighting Reassessment District
2025 did not exceed or equal the assessment ballots submitted in support. Therefore, a
majority protest to the formation of the District does not exist.
SECTION 5. The annual assessments for Fiscal Year 2026-2027 as set forth in
the Engineer's Report are hereby confirmed.
SECTION 6. Passage of this Resolution shall constitute a levy of an assessment
for the fiscal year referred to in the assessment confirmed herein.
SECTION 7. Pursuant to law, including Article 1 of Chapter 4 of Part 2 of Division
5 of the Code, the City Clerk shall file a certified copy of this Resolution and the diagram
and the assessment confirmed by the resolution or a certified copy therefore, with the
County Auditor of the County of Orange.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Tustin held on the 2nd day of December 2025.
AUSTIN LUMBARD,
Mayor
ATTEST:
ERICA N. YASUDA,
City Clerk
Resolution 25-74
Page 2of3
Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3
APPROVED AS TO FORM:
F
cuSigned by:
Z'79
DA $EF3j?1E D
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. 25-74 was duly and regularly passed
and adopted at a regular meeting of the City Council held on the 2nd day of December,
2025 by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
COUNCILMEMBER RECUSED:
ERICA N. YASUDA,
City Clerk
Resolution 25-74
Page 3 of 3
Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3
ATTACHMENT 2
Tustin Landscape and Lighting Reassessment District 2025
Map
Docusign Envelope ID: 97A90435-EAB8-4201-9E33-68F794BOF8F3
Legend
I _ I City Boundary
Benefit Areas
Benefit Area A
Benefit Area B
Benefit Area C
ti
a
N
Remembering what connects us.
a
North
Tustin
Vj
L40
0
Tustin Landscape and Lighting
Reassessment District 2025 0 0.25 0.5
Miles