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HomeMy WebLinkAbout12 APPROVE CREATION OF COMMUNITY FACILITIES DISTRICT 13-01AGENDA REPORT Agenda Item Reviewed: City Manager Finance Director 12 MEETING DATE. MARCH 5 2013 TO JEFFREY C PARKER, CITY MANAGER FROM: PAMELA ARENDS -KING FINANCE DIRECTOR SUBJECT APPROVE CREATION OF COMMUNITY FACILITIES DISTRICT 13 -01 SUMMARY The City continues to develop the former Marine Corps Air Station know as Tustin Legacy To provide adequate funds to provide services to the soon to be developed areas of Tustin Legacy, staff requests City Council approves resolution 13 -14 that establishes a Community Facilities District 13- 01(CFD 13 -01) and authorizes the levy of special taxes and accept the Petition to Create a Community Facilities District with the landowner which is the City of Tustin (City) RECOMMENDATION: 1 Accept and ratify the Petition to Create a Community Facilities District requested by the landowner the City to be signed by the City Manager Jeffrey C Parker as the authorized agent of the City 2. Adopt Resolution No 13 -14 a Resolution of the City Council of the City of Tustin, California of Intention to Establish a Community Facilities District and to Authorize the Levy of Special Taxes. FISCAL IMPACT The estimated fiscal impact is unknown at this time; however, an estimate will be provided at the time of the public hearing adopting the Resolution of Formation for CFD 13 -01 BACKGROUND. On March 1 2004 the City council adopted the City's Mello -Roos Goals & Policies and authorized staff to proceed with the formation of CFDs for the MCAS area to help fund necessary infrastructure improvements and services. To date the City has established CFD No. 2004 -1 CFD No. 2006 -1 and CFD No 2007 -1 in the MCAS to fund necessary infrastructure improvements and services. The establishment of CFD 13 -01 is for the levy of a special tax that will cover services such as police protection; fire protection; ambulance and paramedic services; recreation program services; maintenance of parks, open space, streets, sidewalks and storm protection; and other city services that includes building, planning and finance (See Exhibit 1). CFD 13 -01 will not include a tax levy to APPROVE CREATION OF COMMUNITY FACILITIES DISTRICT 13 -01 March 5, 2013 Page 2 of 2 fund capital facilities which includes infrastructure. The reason for the special tax is because the City only receives 3% of the basic levy (1 0 %) of property tax revenue assessed at Tustin Legacy compared to 10.5% collected citywide, therefore the special tax provides the funds needed to provide services as described above. The rate and method of apportionment of special tax is illustrated in Table 1 for developed property and Table 2 for permitted property in the Rate and Method of Apportionment of Special Tax (Exhibit 2). The area CFD 13 -01 encompasses is attached to the Petition to Create a Community Facilities District. The Public Hearing to adopt the CFD will be held April 16, 2013 due to a 45 day requirement in the Mello -Roos Statue. Pursuant to the Mello -Roos Community Facilities Act of 1982 (Government Code section 53311 et seq.) the establishment of a community facilities district ( "District ") can be initiated in three ways, two of which are applicable in this case. A written request to establish a District signed by two city council members or by way of petition signed by landowners of not less than 10% of the property proposed to be included within the District. In general a public agency is not considered a "landowner" as that term is defined in the Act and thus, could not submit a petition as a landowner or vote to establish the District. However, one of the exceptions to the Act's general rule is when the land owned by a public agency is within territory of a military base that is closed or is being closed. Since the territory within the proposed boundary map of the District is all within the now closed Marine Air Corps Station Tustin, the exception applies and the City would thus be considered a 'landowner' and authorized to submit a petition for formation and to vote on the formation. Pursuant to Section 1415 of the Tustin City Code the City Manager has the power and duty to exercise general supervision over all City property Whether this authority also gives the City Manager the authority to submit a petition to create a District is unclear As such, the City Attorney is recommending that prior to consideration of the Resolution of Intention that the City Council, which would clearly be authorized to submit such a petition, approve and ratify the petition. ; -P‘, c2 — Pamela Arends -King, Finance Director Attachment: Petition to Create A Community Facilities District Exhibit 1 Description of Services Exhibit 2: Rate and Method of Apportionment of Special Tax Resolution No 13 -14 PETITION TO CREATE A COMMUNITY FACILITIES DISTRICT City Council City of Tustin 300 Centennial Way Tustin, California 92780 Members of the City Council: This is a petition to create a community facilities district. and a waiver with respect to certain procedural matters, under the Mello -Roos Community Facilities Act of 1982 (the Act "). and the undersigned hereby state as follows. 1. Landowner This Petition is submitted by Jeffrey C Parker City Manager of the City of Tustin. a municipal corporation ( "City Manager "), as the authorized agent of the City of Tustin (' Landowner ") which owns all of the property proposed to be included within the community facilities district. 2. Proceedings Requested. The Landowner requests that the City Council of the City of Tustin institute proceedings pursuant to the Act to establish a community facilities district to be named "City of Tustin Community Facilities District No 13 -1 (the "Community Facilities District "), to levy special taxes in the Community Facilities District. 3. Boundaries of Community Facilities District, The boundaries of the territory which is proposed for inclusion in the Community Facilities District are described in Exhibit "A" attached hereto and made a part hereof 4. Types of Facilities and Services. The types of services to be financed by the Community Facilities District are described in Exhibit "B" attached hereto and made a part hereof 5. Elections. The Landowner requests that the special elections to be held under the Act to authorize the special taxes for the Community Facilities District and to establish an appropriations limit for the Community Facilities District be consolidated into a single election and that the election be conducted by the City and its officials using ballots delivered by personal service and that such ballots be opened and canvassed and the results certified at the same meeting of the City Council as the public hearing on the Community Facilities District, or as soon thereafter as possible. 912670 1 6. Waiver To expedite the completion of the proceedings for the Community Facilities District, the Landowner waives all notices of hearings (other than published notices required under the Act) and all notices of election, all applicable waiting periods under the Act for the election, all ballot analysis and arguments for the election and all requirements as to the form of the ballot. 7 Deposit. As this Petition is being initiated by the City of Tustin, no deposit is required. 8. Representations and Warranties. The City Manager represents and warrants to the City of Tustin that: (a) the Landowner is, as of the date of this Petition, the legal owner of the fee interest in all of the property proposed to be included within the Community Facilities District and that no other person or entity is the legal owner of any portion of the fee interest in any of such property; (b) Landowner owns the land identified on the attached Exhibit "A ", and (c) Landowner has the power and authority to execute and deliver this Petition and has taken all action necessary to cause this Petition to be executed and delivered on its behalf, and this Petition has been duly and validly executed and delivered by Landowner 9. Mailing Addresses. The address of the Landowner for receiving notices is as follows: To City of Tustin: City of Tustin 300 Centennial Way Tustin, CA 92780 Attn: Jeffrey C. Parker, City Manager This Petition is dated as of February _, 2013 City of Tustin By Name: Jeffrey C. Parker Title: City Manager 912670.1 EXHIBIT 1 TYPES OF SERVICES AND EXPENSES The types of services to be financed by the Community Facilities District are police protection services, fire protection services, ambulance and paramedic services, recreation program services, maintenance of parks, parkways and open space, flood and storm protection, street and sidewalk maintenance, building and planning services, and general city administrative services such as finance, city clerk and city management. Administrative Expenses are the actual or reasonably estimated expenses related to the administration of CFD No 13 -01 such as the costs of determining the amount of the levy of Special Taxes, the collection of Special Taxes, including the expenses of collecting delinquencies, the payment of a proportional share of salaries and benefits of any City employees and City overhead whose duties are related to the administration of CFD No 13 -01 costs associated with responding to public inquiries regarding CFD No 13 -01 and any and all other costs incurred in connection with the administration of CFD No 13 -01 EXHIBIT 2 RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX COMMUNITY FACILITIES DISTRICT NO 13-01 (SERVICES) OF THE CITY OF TUSTIN A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels within Community Facilities District No. 13 -01 (CFD No. 13 -01) of the City of Tustin, other than Assessor s Parcels classified as Exempt Property as defined herein, and collected each Fiscal Year commencing in Fiscal Year 2013 -2014, in an amount determined by the CFD Administrator through the application of the procedures described below All of the real property within CFD No. 13 -01, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Act" means the Mello -Roos Communities Facilities Act of 1982, as amended, being Chapter 2.5, Part 1 Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the following actual or reasonably estimated expenses related to the administration of CFD No. 13 -01 the costs of determining the amount of the levy of Special Taxes, the collection of Special Taxes, including the expenses of collecting delinquencies, the payment of a proportional share of salaries and benefits of any City employees and City overhead whose duties are related to the administration of CFD No. 13 -01 costs associated with responding to public inquiries regarding CFD No. 13 -01, and any and all other costs incurred in connection with the administration of CFD No. 13 -01 "Affordable Units" means residential dwelling units located on one or more Assessor s Parcels of Residential Property that are subject to deed restrictions, resale restrictions, and /or regulatory agreements recorded in favor of the City providing for affordable housing Affordable Units shall be units that are classified as either Moderate Income, Lower Income, or Very Low Income (as defined in Sections 50093, 50079.5, and 50105, respectively, of the California Health and Safety Code.) "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned assessor's parcel number. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by assessor's parcel number. "Boundary Map" means the map of the boundaries of CFD No. 13 -01 recorded on 2013 in the Orange County Recorder's Office in Book Pages , of Maps of Assessments and Community Facilities Districts (instrument number "Building Permit" means a permit for new construction for a residential dwelling or non- residential structure. For purposes of this definition, 'Building Permit' shall not include permits for construction or installation of retaining walls, utility improvements, or other such improvements not intended for human habitation. City of Tustin 1 CFD No. 13 -01 (Services) "Building Square Footage" or "BSF" for Non - Residential Property `Building Square Footage means all of the square footage within the perimeter of a non - residential structure, not including any carport, walkway garage, overhang, patio, enclosed patio, or similar area. The determination of `Building Square Footage for a non - residential structure will be based on the Building Permit(s) issued for such structure and /or by reference to appropriate records kept by the City "Calendar Year" means the period commencing January 1 of any year and ending the following December 31 "Certificate of Occupancy" means a certificate issued by the City, or other applicable government entity that authorizes the actual occupancy of a dwelling unit for habitation by one or more residents or the occupancy of Non Residential Property "CFD Administrator" means an official of the City or designee thereof, responsible for determining the Special Tax Requirement for Facilities, and the Special Tax Requirement for Services, and providing for the levy and collection of the Special Taxes for CFD No. 13 -01 "CFD No. 13 -01" means Community Facilities District No. 13 -01 of the City of Tustin established by the City under the Act to fund Services. "City" means the City of Tustin. "City Council" means the City Council of the City, acting as the legislative body of CFD No. 13 -01 "Commercial Property" means all Assessor s Parcel of Non - Residential Property for which a Building Permit(s) has been issued by the City which is primarily used for, but not limited to: retail; food services; shopping centers; grocery stores; gas stations; restaurants; hotels and motels, recreational facilities, factory/light manufacturing, factory/heavy manufacturing, warehouse - processing and storage, research and development, storage- bulk (tanks, etc), mining and extractive, automotive garages (small), industrial condominiums, or for any other uses that are consistent with commercial land use designations as determined by the City or CFD Administrator. "County" means the County of Orange. "Developed Property" means an Assessor s Parcel of Permitted Property for which a Certificate of Occupancy was issued on or before June 1 preceding the Fiscal Year for which Special Taxes are being levied. "Exempt Property" means all Assessor s Parcels within CFD No. 13 -01 that are exempt from the Special Taxes pursuant to the Act or Section G herein. "Facilities" means those facilities authorized to be funded by CFD No. 13 -01 "Final Map" means a recorded final map, parcel map, or lot line adjustment, evidencing the subdivision of property pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.). "Fiscal Year" means the period commencing on July 1 of any year and ending the following June 30. "Land Use Type" means any of the land use types listed in Table 1 below "Lot" means property within a Final Map identified by a lot number for which a Building Permit has been issued or may be issued. City of Tustin 2 CFD No. 13 -01 (Services) "Maximum Special Tax" means the maximum Special Tax determined in accordance with Section C, which may be levied by in any Fiscal Year on an Assessor s Parcel of Taxable Property "Mixed Use Property" means an Assessor's Parcel of Taxable Property upon which more than one Land Use Type is located. "Multi- Family Residential" or "MFR Property" means an Assessor s Parcel classified as Residential Property for which a Building Permit has been issued for purposes of constructing a residential structure consisting of two or more Residential Units for rent, exclusive of condominiums and attached Single - Family Residential Property "Non- Conforming Property" means an Assessor's Parcel of Non - Residential Property that is not classified as Commercial Property Office Property, or Industrial Property "Non- Residential Property" means an Assessor s Parcel of Permitted Property for which a building permit has been issued by the City for the construction of one or more non - residential buildings or facilities. "Office Property" means an Assessor s Parcel of Non - Residential Property for which a Building Permit(s) has been issued for office and /or profession use, including, but not limited to, office; general office, medical- dental office, hospitals, professional building, and bank or financial institution. "Permitted Property" means an Assessor s Parcel of Taxable Property for which a Building Permit was issued on or before June 1 preceding the Fiscal Year for which Special Taxes are being levied but for which no Certificate of Occupancy was issued on or before such June 1 An Assessor s Parcel classified as Permitted Property but for which the Building Permit that caused such Assessor s Parcel to be classified as Permitted Property has been cancelled and /or voided prior to the Fiscal Year for which Special Taxes are being levied shall be reclassified as Undeveloped Property Consistent with the foregoing, any Assessor's Parcel of Taxable Property that is classified as Developed Property shall not be classified as Permitted Property "Property Owner Association Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 13 -01 that was owned by a property owner association, including any master or sub - association, as of January 1 of the prior Fiscal Year "Proportionately" means the following: • For Developed Property the ratio of the actual Special Tax levied on Developed Property to the Maximum Special Tax for Developed Property is equal for all Assessor's Parcels of Developed Property • For Permitted Property the ratio of the actual Special Tax levied on Permitted Property to the Maximum Special Tax for Permitted Property is equal for all Assessor's Parcels of Permitted Property "Public Property" means all Assessors' Parcels of Taxable Property that is owned by, dedicated or irrevocably dedicated to the City the County the State of California, the federal government or any other public agency (each, a "Public Entity"). "Residential Property" means all Assessors' Parcels of Permitted Property within CFD No. 13 -01 for which a Building Permit has been issued for purposes of constructing one or more Residential Unit(s). "Residential Unit" means any residence in which a person or persons may live, which is not considered to be useable for non - residential purposes. City of Tustin 3 CFD No. 13 -01 (Services) "Services" means those authorized services that may funded by CFD No. 13 -01 pursuant to the Act, as amended. "Special Tax" means the special tax authorized to be levied within CFD No. 13 -01 pursuant to the Act to fund the Special Tax Requirement. "Special Tax Requirement" means the amount, as determined by the CFD Administrator, for any Fiscal Year to: (i) pay the costs of providing the Services during such Fiscal Year, (ii) pay Administrative Expenses associated with Special Tax, (iii) establish or replenish any operational reserve fund established for Services, (iv) pay incidental expenses related to the Services as authorized pursuant to the Act, (v) fund an amount equal to a reasonable estimate of delinquencies expected to occur in the Fiscal Year in which Special Taxes will be levied ( "Estimated Special Tax Delinquency Amount ") and (vi) fund the shortfall, if any, in Special Tax revenues collected in the preceding Fiscal Year necessary to fund the Special Tax Requirement for such Fiscal Year where the shortfall resulted from delinquencies in the payment of Special Taxes in such Fiscal Year that exceeded the Estimated Special Tax Delinquency Amount included in the Special Tax Requirement. "Taxable Property" means all Assessor s Parcels, including Public Property that are not exempt from the Special Tax pursuant to the Act or Section G "Undeveloped Property" means an Assessor s Parcel for which a Building Permit has not been issued on or before June 1 preceding the Fiscal Year for which Special Taxes are being levied. B. CLASSIFICATION OF ASSESSOR'S PARCELS Each Fiscal Year, beginning with Fiscal Year 2013 -2014, each Assessor's Parcel shall first be classified by the CFD Administrator as Taxable Property or Exempt Property In addition, each such Fiscal Year, each Assessor's Parcel of Taxable Property shall be further classified by the CFD Administrator as Developed Property Permitted Property, or Undeveloped Property Lastly, each such Fiscal Year, each Assessor s Parcel of Developed Property and Permitted Property shall be further classified by the CFD Administrator as SFR Property, MFR Property, Non - Residential Property, Public Property or Mixed Use Property and each Assessor Parcel of Non - Residential Property shall be further classified as Commercial Property Office Property or Non - Conforming Property Commencing with Fiscal Year 2013 -2014 and for each subsequent Fiscal Year, all Taxable Property shall be subject to the levy of Special Taxes pursuant to Section C below City of Tustin 4 CFD No. 13 -01 (Services) C. MAXIMUM SPECIAL TAXES 1. Developed Property Each Fiscal Year commencing in Fiscal Year 2013 -2014, each Assessor s Parcel of Developed Property shall be subject to the Special Tax. The Maximum Special Tax for Developed Property for Fiscal Year 2013 -2014 is shown in Table 1 TABLE 1 DEVELOPED PROPERTY MAXIMUM SPECIAL TAX RATES Land Use Type Maximum Special Tax Residential Property MFR Property $346 per Residential Unit Affordable Unit — Moderate $346 per Residential Unit Affordable Unit — Low N/A Affordable Unit — Very Low N/A Public Property $0.29 per BSF Non - Residential Property Commercial Property $0.35 per BSF Office Property $0.29 per BSF Non - Conforming Property $0.35 per BSF For each subsequent Fiscal Year following Fiscal Year 2013 -2014, the Maximum Special Tax shall be increased by 2 %. 2. Permitted Property Each Fiscal Year commencing in Fiscal Year 2013 -2014, each Assessor s Parcel classified as Permitted Property shall be subject to the Special Tax. The Maximum Special Tax for Permitted Property for Fiscal Year 2013 -2014 is shown in Table 2. City of Tustin 5 CFD No. 13 -01 (Services) TABLE 2 PERMITTED PROPERTY MAXIMUM SPECIAL TAX RATES Land Use Type Maximum Special Tax Residential Property MFR Property $346 per Residential Unit Affordable Unit — Moderate $346 per Residential Unit Affordable Unit — Low N/A Affordable Unit — Very Low N/A Public Property $0.29 per BSF Non - Residential Property Commercial Property $0.35 per BSF Office Property $0.29 per BSF Non - Conforming Property $0.35 per BSF For each subsequent Fiscal Year following Fiscal Year 2013 -2014, the Maximum Special Tax shall be increased by 2% 4. Undeveloped Property For any Fiscal Year, each Assessor s Parcel classified as Undeveloped Property shall be exempt from the levy of Special Taxes. 5 Mixed Use Property Each Fiscal Year commencing in Fiscal Year 2013 -2014, each Assessor s Parcel of Mixed Use Property shall be subject to a Special Tax. The Maximum Special Tax for an Assessor's Parcel classified as Mixed Use Property shall be equal to the sum of Maximum Special Taxes that may be applied to each Land Use Type located on that Assessor s Parcel. City of Tustin 6 CFD No. 13 -01 (Services) D METHOD OF APPORTIONMENT OF SPECIAL TAX Commencing in Fiscal Year 2013 -2014 and for each subsequent Fiscal Year as provided in Section F the CFD Administrator shall levy a Special Tax on all Taxable Property until the total amount of Special Taxes levied equals the Special Tax Requirement in accordance with the following steps: Step One: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property at 100% of the applicable Maximum Special Tax to satisfy the Special Tax Requirement. Step Two: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Permitted Property up to 100% of the applicable Maximum Special Tax for Permitted Property E. PREPAYMENT OF SPECIAL TAX The Special Tax is levied for the purpose of financing ongoing Services and therefore may not be prepaid. F TERMINATION OF SPECIAL TAX The Special Tax shall be levied as long as necessary to meet the Special Tax Requirement for Service. G. EXEMPTIONS The CFD Administrator shall classify as Exempt Property (i) Undeveloped Property (ii) Property Owner Association Property (iii) Affordable Units that are considered Low Income or Very Low Income, or (iv) Assessor's Parcels subject to public or utility easements, including Assessor's Parcels designated as open space, endangered species habitat or for flood control purposes, making impractical the utilization of such Assessor's Parcels for other purposes than those set forth in the easement. H APPEALS Any property owner claiming that the amount or application of the Special Tax is not correct may file a written notice of appeal with the CFD Administrator not later than twelve months after having paid the first installment of the Special Tax that is disputed. The CFD Administrator shall promptly review the appeal, and if necessary meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the decision of the CFD Administrator requires that the Special Tax for an Assessor s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor s Parcel in the subsequent Fiscal Year(s) to compensate for the overpayment of the Special Tax. L MANNER OF COLLECTION The annual Special Taxes shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that the Special Taxes may be billed and collected at a different time or in a different manner if necessary to meet the financial obligations of CFD No. 13- 01 City of Tustin 7 CFD No. 13 -01 (Services) RESOLUTION NO 13 -14 A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF CITY OF TUSTIN, CALIFORNIA, TO ESTABLISH A COMMUNITY FACILITIES DISTRICT AND TO AUTHORIZE THE LEVY OF SPECIAL TAXES WHEREAS the City Council ( "City Council ") of the City of Tustin ( "City") has received a Petition from the City Manager on behalf of the City ( "Petition ") which Petition has been ratified by the City Council, requesting the institution of proceedings for the establishment of a community facilities district (the "Community Facilities District ") pursuant to the Mello -Roos Community Facilities Act of 1982, Government Code sections 53311 et seq. (the "Act ") and WHEREAS the Petition describes the boundaries of the property proposed for inclusion in the Community Facilities District and specifies the type of Services to be financed by the Community Facilities District; and WHEREAS the City is the sole owner of the property designated on Exhibit "A" to the Petition, which is all of the property proposed to be included within the Community Facilities District; and WHEREAS the City Council is authorized under the Act to initiate and to establish the Community Facilities District; and WHEREAS pursuant to Section 53317(f) of the Act, the City may include property owned by it within a Community Facilities District because the property it owns is within the territory of the Marine Corps Air Station Tustin, which is now closed NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Tustin, as follows. Section 1 The City Council finds that the Petition has been signed by the duly authorized representative of the owner of the property to be included in the Community Facilities District. Section 2. The City Council proposes to establish the Community Facilities District pursuant to the Act. The boundaries of the property to be included in the Community Facilities District are described in the map on file with the City Clerk (the "Boundary Map ") which boundaries are preliminarily approved. The City Clerk is directed to sign the original Boundary Map and record, or cause to be recorded, the Boundary Map with all proper endorsements in the office of the Orange County Recorder within 15 days of the date of adoption of this Resolution, all as required by Section 3111 of the Streets and Highways Code. Section 3. The name of the Community Facilities District is "City of Tustin 912307.1 Community Facilities District No. 13 -01 " Section 4 The public services (the "Services ") and administrative expenses ( "Administrative Expenses ") proposed to be financed by the Community Facilities District pursuant to the Act are described, respectively under the captions "Services" and "Administrative Expenses" on Exhibit "1 ", which is attached hereto and incorporated herein by this reference. Section 5. Except where funds are otherwise available a special tax sufficient to pay for all Services and Administrative Expenses, secured by recordation of a continuing lien against all nonexempt real property in the Community Facilities District, is proposed to be annually levied The rate and method of apportionment of the special tax (the "Rate and Method "), in sufficient detail to allow each landowner within the proposed Community Facilities District to estimate the maximum amount that he or she will have to pay is described in Exhibit "2" attached hereto and incorporated herein by this reference The special tax will be collected in the same time and manner as ad valorem property taxes or in such other manner as the City Council shall determine if necessary to meet the financial obligations of the Community Facilities District. The tax year after which no further special tax to pay for Services and Administrative Expenses will be levied against any parcel used for private residential purposes is specified in the Rate and Method Under no circumstances shall the special tax levied against any parcel used for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within the Community Facilities District by more than 10 %. For purposes of this paragraph, a parcel shall be considered "used for private residential purposes" not later than the date on which an occupancy permit for private residential use is issued. Section 6. The special tax may not be prepaid. Section 7 The City Council hereby fixes Tuesday April 16, 2013 at 7 p.m., or as soon thereafter as the City Council may hear the matter, in the City Council Chambers at 300 Centennial Way, Tustin, California, as the time and place that the City Council will conduct a public hearing on the establishment of the Community Facilities District. Section 8. At least seven days prior to the date fixed for the hearing, the City Clerk is directed to publish, or cause to be published one time, in a newspaper of general circulation a notice of the public hearing pursuant to Government Code section 6061 The notice shall contain the information prescribed by Government Code section 53322 of the Act. Section 9. The levy of the proposed special tax shall be subject to the vote of the landowner(s) of the Community Facilities District. The ballots shall be delivered by the City Clerk by personal service with each owner(s) having one vote for each acre or portion of an acre that such owner(s) owns in the Community Facilities District. Section 10. Each officer of the City who is or will be responsible for providing one 912307.1 or more of the proposed Services is hereby directed to study or cause to be studied, the proposed Community Facilities District and at or before the public hearing referenced herein, file a report with the City Council containing a brief description of the Services which will in his or her opinion be required to meet the increased demands placed upon the City as the result of the development occurring within the Community Facilities District and an estimate of the cost therefore Such report shall be made a part of the record of the public hearing. Section 11 The officers, employees and agents of the City are authorized and directed to take such other actions and do those things which they may deem necessary or desirable to accomplish the purpose of this Resolution. Section 12. This Resolution shall take effect immediately upon adoption. APPROVED and ADOPTED at a meeting of the City Council of the City of Tustin on March 5, 2013 ELWYN A. MURRAY Mayor ATTEST JEFFREY C PARKER, City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF TUSTIN ) I, Jeffrey C Parker City Clerk of the City of Tustin, do hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Resolution No 13 -14 was duly passed and adopted at a regular meeting of the City of Tustin, held on the 5th day of March, 2013 by the following vote. COUNCIL MEMBER AYES COUNCIL MEMBER NOES: COUNCIL MEMBER ABSTAINED. 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