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HomeMy WebLinkAbout01 PUBLIC HEARING/SPECIAL ELECTION - CFD NO. 13-01 (2)AGENDA REPORT Agenda Item Reviewed: City Manager Finance Director MEETING DATE: MAY 7, 2013 TO: JEFFREY C PARKER, CITY MANAGER FROM: PAMELAARENDS -KING, FINANCE DIRECTOR 1 SUBJECT: CONDUCT A PUBLIC HEARING AND HOLD A SPECIAL ELECTION FOR CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 13 -01 AND ADOPT VARIOUS RESOLUTIONS AND AN ORDINANCE FORMING THE DISTRICT SUMMARY: The City continues to develop the former Marine Corps Air Station known as Tustin Legacy. To provide adequate funds to provide services to the soon to be developed areas of Tustin Legacy, staff requested City Council at the March 5, 2013 meeting to approve a resolution establishing a Community Facilities District No. 13 -01 (CFD 13 -01) and authorizes the levy of special taxes and accept the Petition to create CFD 13 -01. The actions taken by the City at this time will finalize the formation of CFD 13 -01. RECOMMENDATION: 1. Receive and File the Community Facilities District Report. 2. Conduct a public hearing to hear presentations by staff and consultants and hear questions and comments from the public. 3. Adopt Resolution No. 13 -28, a Resolution of the City Council of the City of Tustin, California, of Formation of City of Tustin Community Facilities District 13 -01, Authorizing the Levy of a Special Tax within the District and Establishing an Appropriations Limit for the District. 4. Adopt Resolution No. 13 -29, a Resolution of the City Council of the City of Tustin, California, Calling Special Election for City of Tustin Community Facilities District 13 -01. 5. Vote to approve the proposition authorizing the levying of a special tax and establishing an annual appropriations limit for Community Facilities District No. 13 -01 and authorize the Mayor to cast the City's vote on the official ballot for the Community Facilities District in accordance therewith. 6. Direct the City Clerk to open ballots, announce the results of the election and to execute the Statement of Results of Election. 7. Adopt Resolution No. 13 -30, a Resolution of the City Council of the City of Tustin, California, Declaring Results of Special Election and Directing Recording of Notice of Special Tax Lien. 924946.1 CONDUCT PUBLIC HEARING AND HOLD ELECTION TO APPROVE FORMATION OF CFD 13 -01 May 7, 2013 PAGE 2 8. Approve for first reading, Ordinance No. 1431, an Ordinance of the City of Tustin, California, Levying Special Taxes within the City of Tustin Community Facilities District 13 -01. FISCAL IMPACT: The special tax will be used within and of benefit to the CFD for the maintenance of City - owned properties and City services. The Rate and Method of Apportionment (RMA) establishes the assessment for each land use and is based on the historical impacts associated with those uses. 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; maintenance of parks, open space, streets, sidewalks and storm protection; and other city services that includes building, planning and finance. CFD 13 -01 will not include a tax levy to 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 in the Rate and Method of Apportionment of Special Tax. It is important to note that recreation program services are unable to be funded by CFD 13 -01 due to a change in state law. On March 5, 2013, the City Council accepted and ratified a petition to create CFD 13 -01 and adopted Resolution No. 13 -14 a resolution of intention to establish CFD 13 -01 and to authorize the levy of special taxes. A public hearing was held on April 16, 2013, which hearing was continued to this date. Pursuant to Government Code section 53326 of the Mello -Roos Community Facilities Act (the "Act "); if there are not 12 registered voters with the boundaries of the CFD 13- 01, then the vote is of the landowners within CFD 13 -01. The County Registrar has certified there are not 12 registered voters and because the City is the sole landowner, the Mayor, by way of motion by the City Council, will be casting, on the City's behalf, the only ballot on the proposition authorizing the levy of special taxes within the CFD 13 -01. TONIGHT'S ACTIONS: The City Council has initiated proceedings to consider the establishment of CFD 13 -01 pursuant to the provisions of the Act. The Public Hearing will provide the public an 924946.1 CONDUCT PUBLIC HEARING AND HOLD ELECTION TO APPROVE FORMATION OF CFD 13 -01 May 7, 2013 PAGE 3 opportunity to provide testimony related to the formation of CFD 13 -01 and the CFD Report (Attachment 1) prepared by Willdan. The CFD Report describes the CFD boundaries, the rate and method of apportionment of the special taxes to be levied, and the services to be funded by the CFD 13 -01. The proceedings to establish CFD 13 -01 will be accomplished by the adoption of the Formation Resolution, as well as the other Resolutions and Ordinance, identified in the recommended actions. The City will be taking certain actions including: 1. Adopt the Resolution of Formation (Attachment 2). This resolution establishes the boundaries of the CFD 13 -01, the rates and methods of apportionment of the special taxes to be levied, and the services to be funded by the CFD 13- 01. 2. Adopt the Resolution calling the Special Election (Attachment 3). This resolution sets out the terms and conditions for an election to be conducted by the City Clerk as the election official for a vote to be taken by the landowners of record. The Registrar of Voters has certified that there are no registered voters within the proposed CFD 13 -01, thus, the vote will be by the owner of the affected land (i.e. the City). After the Resolution calling the special election is adopted, the City Council will vote on the proposition to authorize the Community Facilities District to levy the special tax and to establish the appropriations limits and authorize the Mayor to cast the ballot for the City, as the sole property owner within the Community Facilities District, in accordance with the City Council's vote. Pursuant to Government Code section 53326, the number of votes to be cast is equal to the number of acres owned by the City. Upon casting the ballot, the Mayor will hand the ballot to the City Clerk, who will then open the ballot and state the results of the election. The City Clerk will then fill out and sign the Statement of Election Results, a sample of which is attached as Exhibit "A" to the Resolution Declaring Results of Special Election. If the results of the special election reveal that the proposition has received the affirmative vote of two - thirds of the votes cast, the City Council would then: 1. Adopt a Resolution declaring the results of the consolidated special election for CFD 13 -01 (Attachment 4); and 2. Adopt a motion to introduce and waive the first reading of the Ordinance levying special taxes within CFD 13 -01 (Attachment 5). NEXT STEPS: Following the public hearing, the proposed schedule to complete the formation of CFD 13 -01 is as follows: • May 21, 2013: Second Reading of ordinance authorizing special tax levy • June 20, 2013: Ordinance authorizing special tax levy goes into effect 924946.1 CONDUCT PUBLIC HEARING AND HOLD ELECTION TO APPROVE FORMATION OF CFD 13 -01 May 7, 2013 PAGE 4 de� LCatestA- Ll Pamela Arends -King Finance Director Attachments: CFD Report Resolution of Formation Resolution calling for an Election Resolution declaring results of an Election Special Tax Ordinance Official Ballot 924946.1 TUSTIN LEGACY 27368 Via Industria Suite 110 Temecula. CA 92590 T 951.587.3500 I 800.755.6864 F 951.587.3510 www.willdan.com /financial City of Tustin Community Facilities District No 13 -01 (Public Safety Services and the Maintenance of Streets, Storm Drains, Open Space, and Parks) CFD REPORT WWI LLDAN Financial Services TABLE OF CONTENTS I. INTRODUCTION 3 II. GENERAL DESCRIPTION & BOUNDARIES OF CFD No. 13-01 4 III. DESCRIPTION OF SERVICES 5 IV. COST ESTIMATES 6 V. RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX 7 EXHIBIT A- DESCRIPTION OF BOUNDARIES A -1 EXHIBIT B - TUSTIN CFD 13 -01- ASSESSOR'S PARCEL LISTING B -1 WFinancial Services WILLDAN I. Introduction WIIEREAS, the City Council of the City of Tustin (hereinafter referred to as the "Council"), in the State of California, did, pursuant to the terms and provisions of Chapter 2.5 of Part 1, of Division 2, of Title 5 of the Government Code of the State of California, as amended (the "Act "), adopted a Resolution of Intention for the proposed formation of Community Facilities District No. 13 -01. WHEREAS, this Community Facilities District Report ( "Report ") is being provided to the City Council and generally contains the following: A brief description of the public services (the "Services ") which are required to adequately meet the needs of CFD No. 13 -01; An estimate of the cost of financing such Services, as defined below, including incidental expenses, determination of the amount of any Special Tax, collection of any Special Tax, and all other related costs as provided for in Section 53345.3 of the Act, and including all costs associated with the creation of CFD No. 13 -01, or costs otherwise incurred by the City in order to carry out the authorized purposes of CFD No. 13 -01; and The rate and method of apportionment of the Special Tax in sufficient detail to allow each property owner within the proposed CFD No. 13 -01 to calculate the Maximum Special Tax that may be levied against their property. For particulars, reference is made to the Resolution of Intention, Resolution No. 13 -14 as previously approved. All capitalized terms not defined herein are defined in the Rate and Method of Apportionment of Special Tax section of this report. NOW THEREFORE Willdan Financial Services, the appointed responsible firm directed to prepare the Report, pursuant to the provisions of the Code, does hereby submit the following: WFinancial Services WI LLDAN Page 3 II. General Description & Boundaries of CFD No. 13-01 CFD 13 -01 encompasses approximately 518 acres of land in the City of Tustin (City), located within in the area of the former Marine Corps Air Station. Property within the boundaries of the CFD will be developed in a variety of uses including multi - family residential, commercial and office. The purpose of the CFD is to provide revenue for the provision of approved City services (further described separately later in this report) for the benefit of properties within the District boundaries. All Developed parcels within the boundaries of CFD 13 -01 are subject to Special Tax B, as described in the Rate and Method of Apportionment of Special Tax, also included in this report. At final build out, CFD No. 13 -01 is expected to contain approximately 1,939,680 square feet of commercial retail, 4,540,494 square feet of office space, 854 Multi - Family Properties, and 101 Moderate Income Affordable Multi- Family Units. A description of the exterior boundaries of the territory proposed for inclusion in CFD No. 13 -01, including properties and parcels of land proposed to be subject to the levy of a Special Tax by CFD No. 13 -01, is shown on the boundary map designated as "MAP OF PROPOSED BOUNDARIES OF CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 13-01", which is on file in the office of the City Clerk of the City of Tustin and was recorded with the County Recorder of the County of Orange on March 13`h, 2013 in Book 97 of Maps of Assessment and Community Facilities Districts at page 37 and as Instrument Number 2013 - 152922. A copy of the map is attached hereto as Exhibit A and hereby incorporated by reference. Additionally, a listing of the assessor's parcel numbers contained within the boundary of CFD No. 13 -10 has been attached hereto as Exhibit B. WWI LLDAN Financial Services Page 4 III. Description of Services CFD No. 13 -01 is being formed to finance police protection services and fire protection and suppression services, including but not limited to (i) the costs of contracting services, (ii) equipment, . vehicles, ambulances and paramedics, fire apparatus, supplies, (iii) the salaries and benefits of City staff that directly provide police protection services and fire protection and suppression services and other services as defined herein, respectively, and (iv) City overhead costs associated with providing such services for the benefit of properties within the District. On each July 1 following the Base Year the increases attributed to salaries and benefits shall be calculated and limited to the increase based on the Annual Escalation Factor as provided in the Rate and Method of Apportionment of the Special Taxes. The Special Tax will finance Services that are in addition to those provided in or required for the territory within the District and will not be replacing services already available. The Special Tax provides only partial funding for police and fire services. CFD No. 13 -01 is also being formed to finance park maintenance, including but not limited to, labor, material, administration, personnel, equipment, and utilities necessary to maintain park improvements, including recreational facilities, trees, plant material, sod, irrigation systems, sidewalks, drainage facilities, weed control and other abatements, public restrooms, signs, monuments, and associated appurtenant facilities. At the discretion of the City, these services may be provided directly by the City and /or by contracting for such services. CFD No. 13 -01 is also being formed to finance flood and storm drainage system maintenance and operations, including but not limited to, labor, material, administration, personnel, equipment, and utilities necessary to maintain and operate the flood and storm drainage system. CFD No. 13 -01 may also finance the following services, including but not limited to: parkways, open space, street, and sidewalk maintenance. Lastly, CFD revenues will also be used to offset general city costs and expenses directly connected with the administration of the District and provision of the services such as; finance, building & planning services, city clerk, and city management. This includes administrative costs related to the annual administration of the District, determination and calculation of the annual Special Tax, coordination with Orange County Auditor - Controller for placement of the Special Taxes on the secured property tax roll, and monitoring and collection of payments. WFinancial Services WI LLDAN Pan! 5 N. Cost Estimates The budget below represents the maximum estimated cost of Services in current year dollars assuming all properties are developed to the maximum number of units. The Special Tax was calculated as the amount necessary to pay for the District's proportionate share of the services above based on 2013 dollars, which are in addition to the services already provided to the area before the District was created. The Special Tax B levied to pay for services will not exceed the Maximum Special Tax B identified in the Rate and Method of Apportionment. Total Services Annual Budget O $2,510,000 (1) Cost estimate is based on (:FD 13 -01 at final build out of units which includes future annexations. () The maximum special tax will only offset a portion of the estimated annual cost. WFinancial Services WI LLDAN V. Rate and Method of Apportionment of Special Tax Overview All property located within CFD No. 13 -01, unless exempted by law or specifically by the Rate and Method of Apportionment (included below), shall be taxed for the purpose of providing necessary services within CFD No. 13 -01. Pursuant to Section 53325.3 of the Act, the tax imposed is a special tax and not a special assessment. Therefore, there is no requirement that the tax be apportioned on the basis of benefit to any property. The special. tax "may be based on a benefit received by parcels of real property, the cost of making facilities or authorized services available to each parcel, or some other reasonable basis as determined by the legislative body ". The special tax may not be apportioned on an ad valorem basis pursuant to Article XIIIA of the California Constitution. General Explanation of Special Tax Apportionment When a community facilities district is formed, a special tax may be levied on each parcel of taxable property within the CFD to pay for authorized services or to repay bonded indebtedness or other related expenses incurred by the CFD. When more than one type of land use is present within a community facilities district, various criteria may be considered when apportioning a special tax. Generally, criteria based on building square footage, lot size, density and /or land use are selected to establish categories to differentiate between parcels of property. These categories are a direct result of the developer's projected product mix and are reflective of the proposed land use types within that community facilities district. The major assumption inherent in the Special Tax rates set forth in the Rate and Method of Apportionment is that the level of benefit received from the proposed public services is a function of land use and /or size of building. First Amended 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. 1)l:.l ltil l lc )NS 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 Tide 5 of the Government Code of the State of California. WWI LLDAN Financial Services Page 7 "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 March 13, 2013 in the Orange County Recorder's Office in Book 97, Page 37, of Maps of Assessments and Community Facilities Districts (instrument number 2013 - 152922). "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. "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. "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. WWI LLDAN Financial Services Page 8 "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 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. "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. "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. "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. "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 Taxable 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. "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 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. WWILLDAN Financial Services Page 9 "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 Taxable 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. "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. CLASS1 l(: n(1N ( II, _1S'1.SSOR'S P.11Z(:I:I.s 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 or Undeveloped Property. Lastly, each such Fiscal Year, each Assessor's Parcel of Developed Property shall be further classified by the CFD Administrator as 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. WWI LLDAN Financial Services Page 10 C. \I.1NI \IL•\l SPI:CIAI.'1'.1N1'.5 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 Type l'AX RAILS i*iin um 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. Undeveloped Property For any Fiscal Year, each Assessor's Parcel classified as Undeveloped Property shall be exempt from the levy of Special Taxes. 3. 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. WFinancial Services WI LLDAN Page I I). ,1IE'l I loll OI _ \I'POR'1'IONNII .N'1' OF SP1 :(:Ia.'I'.1N 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. The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property, up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax Requirement. 1 PRFP. \V\1I.\ F Ol» tiPl .01.11. TAN The Special Tax is levied for the purpose of financing ongoing Services and therefore may not be prepaid. I. '1ERMlN:1TION Of' SPFCL \1. TAN The Special Tax shall be levied as long as necessary to meet the Special Tax Requirement for Service. G. I;il:'\IP"IIONti 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. II.APPI:: \Lti 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. I. 'vlANNI :R OF COI.1.1?C'11ON 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. WFinancial Services WI LLDAN Page 1 ;_ April 16, 2013 City of Tustin Community Facilities District No. 13-01 Exhibit A — Description of Boundaries Boundaries of CFD No. 13 -01: FILED IN THE ORLS O THE Or, CLEAs THIS DATE* X13 IMAM OECTRV FEW TM WIT ,IN MAP 0.0.1010 THE M0700FD Ip. SSH S SF TM OTY OF FuFSra1 CC0MM SS f us s II ES OS UMI VD 11-01. COMM Of OMMt Rune O. CJLLEOa01l.1.1t N'M101® EY na OTV coLms Or nt 19MEOF Tt!LIAF AaMOL SR 1t01.4 INFICOF INED ONTHE CM aIL."re 0rSCLU110I 110 IS'N Y f. N isaa,cTM1 0.9101 ..,44.0 OWL .P'INTfl1 6VmTE.SSTMRh CLAIM REWRICERS =MGM Tnt !?Q+ OM Of ?V4f ! AT 1-1! OQDOa A ALIN aCOR i-, O DEFT OF AaaYElilr NO I1-IVOJ IN MEMICFEM 1111:01.11.0 TEI arycv TATMa1Tt OP faAla nt COUNTY aKOMM 11( COIMTY OF OIWiOR RATS OF CASPOSM. Fg. EN to", at °I 2 19- 1S IL A>•x. cairnneu.ltoaceT EJ COIA.T I QMFINCOaoF.R COIIOV OF oaNLf 1111 LINT AND oaBE9010 Of CNn 5 CP Ja MICR ANON. DN THIf CAF 3Me SE MOSF l its NC NFF •.5Or.l AS v.MN :1r TM OSMA N COIATY ISSEEa049 YAPS 11105E N1llCEE DEM MAP OF PROPOSED BOUNDARIES OF CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 13 -01 COUNTY OF ORANGE STATE OF CALIFORNIA SHEE, ID<1 i WN'S\ YE g NOT TO SCALE THI OOA CIE COII.TY ASSFSSOkS 14PS SMALL GOMM FOR ALL DETNL9 CONGER4INJ THE LI1 NO DMINWONS R SIA?I lOT3OR ►.Cgs LEGEND CFO RDl1NOAR V *WILLDAN Financial SRlrtss WFinancial Services WI LLDAN April 16, 2013 City of Tustin Community Facilities District No. 1 3 -01 Exhibit B — Tustin CM) 13-01 — Assessor's Parcel Listing 430 - 271 -03 430 - 271 -50 430 - 271 -70 430 - 271 -91 430 - 371 -42 430 - 371 -67 430- 381 -65 430 - 271 -04 430 - 271 -51 430 - 271 -71 430 - 271 -92 430 - 371 -43 430 - 371 -68 430 - 381 -67 430 - 271 -05 430 - 271 -52 430 - 271 -72 430 - 271 -93 430 - 371 -44 430 - 371 -69 430 - 381 -74 430 - 271 -08 430 - 271 -53 430 - 271 -73 430 - 371 -20 430 - 371 -45 430 - 371 -70 430 - 391 -09 430 - 271 -09 430 - 271 -54 430 - 271 -74 430 - 371 -22 430 - 371 -46 430 - 371 -71 430 - 391 -12 430 - 271 -35 430 - 271 -55 430 - 271 -75 430 - 371 -25 430 - 371 -47 430 - 371 -72 430 - 391 -18 430 - 271 -36 430 - 271 -56 430 - 271 -77 430 - 371 -26 430 - 371 -48 430 - 371 -73 430 - 391 -31 430 - 271 -37 430- 271 -57 430- 271 -78 430- 371 -27 430- 371 -49 430- 371 -74 430 - 391 -33 430 - 271 -38 430- 271 -58 430 - 271 -79 430 - 371 -29 430 - 371 -50 430 - 371 -75 430 - 391 -34 430 - 271 -39 430- 271 -59 430 - 271 -80 430 - 371 -30 430 - 371 -51 430 - 381 -26 430 - 391 -35 430 - 271 -40 430 - 271 -60 430 - 271 -81 430 - 371 -31 430 - 371 -52 430 - 381 -27 430 - 391 -36 430 - 271 -41 430 - 271 -61 430 - 271 -82 430 - 371 -33 430 - 371 -53 430 - 381 -29 430 - 391 -37 430 - 271 -42 430 - 271 -62 430 - 271 -83 430 -371 -34 430 - 371 -54 430 - 381 -30 430 - 391 -38 430 -271 -43 430 - 271 -63 430 - 271 -84 430 - 371 -35 430 - 371 -55 430 - 381 -32 430 - 391 -39 430 - 271 -44 430 - 271 -64 430 - 271 -85 430 - 371 -36 430 - 371 -56 430 - 381 -33 430 - 391 -40 430 - 271 -45 430 - 271 -65 430 - 271 -86 430 - 371 -37 430 - 371 -57 430- 381 -36 430 -391 -41 430 - 271 -46 430 - 271 -66 430 - 271 -87 430 - 371 -38 430 - 371 -58 430 - 381 -37 430 - 391 -71 430 - 271 -47 430 - 271 -67 430 - 271 -88 430 - 371 -39 430 - 371 -59 430 - 381 -43 430 - 271 -48 430 - 271 -68 430 - 271 -89 430 - 371 -40 430 - 371 -60 430 - 381 -62 430- 271 -49 430 - 271 -69 430- 271 -90 430 -371 -41 430 - 371 -61 430 - 381 -64 WjWi LLDAN Financial Services RESOLUTION NO. 13 -28 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA OF FORMATION OF CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 13 -01, AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN THE DISTRICT AND ESTABLISHING AN APPROPRIATIONS LIMIT FOR THE DISTRICT WHEREAS, on March 5, 2013, the City Council (the "City Council ") of the City of Tustin (the "City "), pursuant to the Mello -Roos Community Facilities Act of 1982 (the "Act "), adopted a resolution entitled "A Resolution of Intention of the City Council of the City of Tustin, California, to Establish a Community Facilities District" (the "Resolution of Intention "), stating its intention to establish a community facilities district proposed to be named City of Tustin Community Facilities District No. 13 -01 (the "Community Facilities District "), to authorize the levy of special taxes within the Community Facilities District to finance certain public services and setting April 16, 2013, as the date for a public hearing to be held on the formation of the Community Facilities District ( "Formation Hearing ");•and WHEREAS, a public hearing was held on April 16, 2013, at which the City Council determined to continue to this date, the Formation Hearing; and WHEREAS, pursuant to the Resolution of Intention and the Act, notice of the Formation Hearing was published in the Tustin News, a newspaper of general circulation published in the area of the Community Facilities District; and WHEREAS, on this date, the City Council opened, conducted and closed the Formation Hearing; and WHEREAS, pursuant to the Resolution of Intention, each officer of the City who is or will be responsible for providing one or more of the proposed types of public services was directed to study, or cause to be studied, the proposed Community Facilities District and, at or before the Formation Hearing, file a report with the City Council containing a brief description of the public services by type which will, in his or her opinion, be required to adequately meet the needs of the Community Facilities District and an estimate of the cost of providing such public services and of the incidental expenses proposed to be paid; and WHEREAS, said report was filed with the City Council and made a part of the record of the Formation Hearing; and WHEREAS, at the Formation Hearing, the testimony of all interested persons and taxpayers for or against the establishment of the Community Facilities District, the extent of the Community Facilities District and the furnishing of the specified types of public services was heard; and WHEREAS, written protests against the establishment of the Community Resolution No. 13 -28 Page 1 of 4 Facilities District, the furnishing of any specified type of services within the Community Facilities District or the levying of any specified special tax were not made or filed at or before the Formation Hearing by 50% or more of the registered voters, or six registered voters, whichever is more, residing within the territory proposed to be included in the Community Facilities District, or the owners of one - half or more of the area of land in the territory proposed to be included in the Community Facilities District and not exempt from the special tax; and WHEREAS, there has been filed with the City Clerk of the City a letter from the Registrar of the County of Orange indicating that 12 or more persons have not been registered to vote within the territory of the proposed Community Facilities District for each of the 90 days preceding the close of the Formation Hearing. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tustin as follows: Section 1. The foregoing recitals are true and correct. Section 2. The Community Facilities District is hereby established pursuant to the Act. Section 3. The Community Facilities District is hereby named "City of Tustin 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 "A ", which is attached hereto and incorporated herein by this reference. Section 5. The proposed special tax to be levied within the Community Facilities District has not been precluded by majority protest pursuant to Section 53324 of the Act. Section 6. Except where funds are otherwise available, a special tax sufficient to pay for Services and Administrative Expenses, secured by recordation of a continuing lien against all nonexempt real property in the Community Facilities District, will be annually levied within the Community Facilities District. 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 "B ", which is attached hereto and incorporated herein by this reference. The special tax will be collected in the same manner as ordinary ad valorem property taxes or in such other manner as the City Council shall determine, including direct billing of the affected property owners. Section 7. The special tax may not be prepaid. Resolution No. 13 -28 Page 2 of 4 Section 8. Under no circumstances shall the special tax to pay for public services 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 9. The name, address and telephone number of the office which will be responsible for preparing annually a current roll of special tax levy obligations by assessor's parcel number and which will be responsible for estimating further special tax levies pursuant to Section 53340.1 of the Act is as follows: Finance Director, City of Tustin, 300 Centennial Way, Tustin, California 92680, (714) 573 -3061. Section 10. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property in the Community Facilities District and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the tax by the City Council ceases. Section 11. The boundary map of the Community Facilities District has been recorded in the County of Orange in Book 97 at Page 37 of Maps of Assessments and Community Facilities Districts in the office of the County Recorder of the County of Orange. Section 12. The annual appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, of the Community Facilities District is hereby established at $4,000,000. Section 13. Pursuant to the provisions of the Act, the levy of the special tax and a proposition to establish the appropriations limit specified above shall be subject to the approval of the qualified electors of the Community Facilities District at a special election. The City Council hereby finds and determines that 12 or more persons have not been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close of the public hearing held by the City Council on the establishment of the Community Facilities District. Accordingly, pursuant to Section 53326 of the Act, the vote shall be by the landowners of the Community Facilities District and each landowner who is the owner of record as of the close of said public hearings, or the authorized representative thereof, shall have one vote for each acre or portion of an acre that he or she owns within the Community Facilities District. The voting procedure shall be by mailed or hand - delivered ballot. Section 14. The City Council hereby finds and determines that all proceedings up to and including the adoption of this Resolution were valid and in conformity with the requirements of the Act. In accordance with Section 53325.1 of the Act, this Resolution No. 13 -28 Page 3 of 4 finding shall be final and conclusive. Section 15. The officers, employees and agents of the City are hereby authorized and directed to take all actions and do all things which they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof. Section 16. This Resolution shall take effect immediately upon its adoption. PASSED and ADOPTED at a regular meeting of the City Council of the City of Tustin held on May 7, 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 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 of the City of Tustin is five; and that the above and foregoing Resolution No. 13 -28 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 7th day of May, 2013 by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES; COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT JEFFREY C. PARKER, City Clerk Resolution No. 13 -28 Page 4 of 4 RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: Office of the City Clerk 300 Centennial Way Tustin, California 92780 Attention: City Clerk — Jeffrey C. Parker No Recording Fee Required (Cal. Gov't Code g 6103) NOTICE OF SPECIAL TAX LIEN CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 13 -01 Pursuant to the requirements of Section 3114.5 of the California Streets and Highways Code and the Mello -Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the California Government Code (the "Act "), the undersigned City Clerk of the City of Tustin, County of Orange, State of California, hereby gives notice (the "Notice ") of the foregoing and that a lien to secure payment of a special tax is hereby imposed by the City Council of the City of Tustin, County of Orange, State of California. The special tax secured by this lien is authorized to be levied for the purpose of financing the costs of services as described in Exhibit "A ". The special tax is authorized to be levied within the City of Tustin Community Facilities District No. 13 -01 (the "District "), which has now been officially formed and the lien of special tax is a continuing lien which shall secure each annual levy of the special tax and which shall continue in force and effect until the special tax ceases to be levied and a notice of cessation of special tax is recorded in accordance with Section 53330.5 of the Act. The rate, method of apportionment, and manner of collection of the authorized special tax is as set forth in the Rate and Method of Apportionment of the special tax (the "Rate and Method ") attached hereto as Exhibit "B" and by this reference incorporated herein. Notice is further given that upon the recording of this Notice in the office of the County Recorder of the County of Orange, the obligation to pay the special tax levy shall become a lien upon all nonexempt real property within the District, in accordance with Section 3115.5 of the California Streets and Highways Code. The names of the owner(s) and the assessor's tax parcel number(s) of the real property included within the District are set forth in Exhibit "C" attached hereto and by this reference made a part hereof. Reference is made to the Map of Proposed Boundaries of the District recorded on March 13th, 2013 as Instrument Number 2013 - 152922 in Book 97 of Maps of Assessment and Community Facilities Districts at Page 37, in the office of the County Recorder for the County of Orange, State of California, which map is the final boundary map of the District. For further information concerning the current and estimated future tax liability of owners or purchasers of real property subject to this special tax lien, interested persons should contact the Director of Finance at the City of Tustin, 300 Centennial Way, Tustin, California 92780, telephone number (714) 573 -3060. Dated: , 2013 By: Jeffrey C. Parker, City Clerk 1 EXHIBIT A CITY OF TUSTIN Community Facilities District No. 13 -01 DESCRIPTION OF SERVICES CFD No. 13 -01 is being formed to finance police protection services and fire protection and suppression services, including but not limited to (i) the costs of contracting services, (ii) equipment, vehicles, ambulances and paramedics, fire apparatus, supplies, (iii) the salaries and benefits of City staff that directly provide police protection services and fire protection and suppression services and other services as defined herein, respectively, and (iv) City overhead costs associated with providing such services for the benefit of properties within the District. On each July 1 following the Base Year the increases attributed to salaries and benefits shall be calculated and limited to the increase based on the Annual Escalation Factor as provided in the Rate and Method of Apportionment of the Special Taxes. The Special Tax will finance Services that are in addition to those provided in or required for the territory within the District and will not be replacing services already available. The Special Tax provides only partial funding for police and fire services. CFD No. 13 -01 is also being formed to finance park maintenance, including but not limited to, labor, material, administration, personnel, equipment, and utilities necessary to maintain park improvements, including recreational facilities, trees, plant material, sod, irrigation systems, sidewalks, drainage facilities, weed control and other abatements, public restrooms, signs, monuments, and associated appurtenant facilities. At the discretion of the City, these services may be provided directly by the City and /or by contracting for such services. CFD No. 13 -01 is also being formed to finance flood and storm drainage system maintenance and operations, including but not limited to, labor, material, administration, personnel, equipment, and utilities necessary to maintain and operate the flood and storm drainage system. CFD No. 13 -01 may also finance the following services, including but not limited to: parkways, open space, street, and sidewalk maintenance. Lastly, CFD revenues will also be used to offset general city costs and expenses directly connected with the administration of the District and provision of the services such as; finance, building & planning services, city clerk, and city management. This includes administrative costs related to the annual administration of the District, determination and calculation of the annual Special Tax, coordination with Orange County Auditor- Controller for placement of the Special Taxes on the secured property tax roll, and monitoring and collection of payments. A -1 EXHIBIT 13 FIRST AMENDED 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 March 13, 2013 in the Orange County Recorder's Office in Book 97, Page 37, of Maps of Assessments and Community Facilities Districts (instrument number 2013 - 152922). "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. B -1 "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.'1lie 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. "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 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. "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. "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. "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. "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 Taxable Property for which a Building Permit has been issued by the City for the construction of one or more non - residential buildings or facilities. B -2 "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. "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 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. "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 Taxable 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. "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 or Undeveloped Property. Lastly, each such Fiscal Year, each Assessor's Parcel of Developed Property shall be further classified by the CFD Administrator as 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- B -3 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. 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 Ycar following Fiscal Year 2013 -2014, the Maximum Special Tax shall be increased by 2 %. B -4 2. Undeveloped Property For any Fiscal Year, each Assessor's Parcel classified as Undeveloped Property shall be exempt from the levy of Special Taxes. 3. 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. 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. The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property, up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax Requirement. 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 Sery ice. 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 utilisation 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 'Fax. I. 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. B -5 EXHIBIT C CITY OF TUSTIN Community Facilities District No 13 -01 Assessor's Parcel Numbers ASSESSOR'S PARCEL NUMBER LANDOWNER 430 - 271 -03 CITY OF TUSTIN 430 - 271 -04 CITY OF TUSTIN 430 - 271 -05 CITY OF TUSTIN 430- 271 -08 CITY OF TUSTIN 430 - 271 -09 CITY OF TUSTIN 430 - 271 -35 CITY OF TUSTIN 430 - 271 -36 CITY OF TUSTIN 430 - 271 -37 CITY OF TUSTIN 430- 271 -38 CITY OF TUSTIN 430 - 271 -39 CITY OF TUSTIN 430 - 271 -40 CITY OF TUSTIN 430- 271 -41 CITY OF TUSTIN 430 - 271 -42 CITY OF TUSTIN 430 - 271 -43 CITY OF TUSTIN 430 - 271 -44 CITY OF TUSTIN 430 - 271 -45 CITY OF TUSTIN 430- 271 -46 CITY OF TUSTIN 430 - 271 -47 CITY OF TUSTIN 430- 271 -48 CITY OF TUSTIN 430 - 271 -49 CITY OF TUSTIN 430 - 271 -50 CITY OF TUSTIN 430 - 271 -51 CITY OF TUSTIN 430- 271 -52 CITY OF TUSTIN 430- 271 -53 CITY OF TUSTIN 430 - 271 -54 CITY OF TUSTIN 430 - 271 -55 CITY OF TUSTIN 430 - 271 -56 CITY OF TUSTIN 430 - 271 -57 CITY OF TUSTIN 430 - 271 -58 CITY OF TUSTIN 430 - 271 -59 CITY OF TUSTIN 430 - 271 -60 CITY OF TUSTIN 430 - 271 -61 CITY OF TUSTIN C -1 ASSESSOR'S PARCEL NUMBER LANDOWNER 430 - 271 -62 CITY OF TUSTIN 430 - 271 -63 CITY OF TUSTIN 430 - 271 -64 CITY OF TUSTIN 430 - 271 -65 CITY OF TUSTIN 430 - 271 -66 CITY OF TUSTIN 430 - 271 -67 CITY OF TUSTIN 430 - 271 -68 CITY OF TUSTIN 430 - 271 -69 CITY OF TUSTIN 430 - 271 -70 CITY OF TUSTIN 430 - 271 -71 CITY OF TUSTIN 430 - 271 -72 CITY OF TUSTIN 430 - 271 -73 CITY OF TUSTIN 430 - 271 -74 CITY OF TUSTIN 430 - 271 -75 CITY OF TUSTIN 430 - 271 -77 CITY OF TUSTIN 430 - 271 -78 CITY OF TUSTIN 430 - 271 -79 CITY OF TUSTIN 430 - 271 -80 CITY OF TUSTIN 430 - 271 -81 CITY OF TUSTIN 430- 271 -82 CITY OF TUSTIN 430 - 271 -83 CITY OF TUSTIN 430 - 271 -84 CITY OF TUSTIN 430 - 271 -85 CITY OF TUSTIN 430 - 271 -86 CITY OF TUSTIN 430 - 271 -87 CITY OF TUSTIN 430 - 271 -88 CITY OF TUSTIN 430 - 271 -89 CITY OF TUSTIN 430 - 271 -90 CITY OF TUSTIN 430 - 271 -91 CITY OF TUSTIN 430 - 271 -92 CITY OF TUSTIN 430 - 271 -93 CITY OF TUSTIN 430 - 371 -20 CITY OF TUSTIN 430- 371 -22 CITY OF TUSTIN 430 - 371 -25 CITY OF TUSTIN 430 - 371 -26 CITY OF TUSTIN 430 - 371 -27 CITY OF TUSTIN 430 - 371 -29 CITY OF TUSTIN 430 - 371 -30 CITY OF TUSTIN 430 - 371 -31 CITY OF TUSTIN C -2 ASSESSOR'S PARCEL NUMBER LANDOWNER 430 - 371 -33 CITY OF TUSTIN 430- 371 -34 CITY OF TUSTIN 430 - 371 -35 CITY OF TUSTIN 430 - 371 -36 CITY OF TUSTIN 430 - 371 -37 CITY OF TUSTIN 430 - 371 -38 CITY OF TUSTIN 430 - 371 -39 CITY OF TUSTIN 430 - 371 -40 CITY OF TUSTIN 430 - 371 -41 CITY OF TUSTIN 430 - 371 -42 CITY OF TUSTIN 430- 371 -43 CITY OF TUSTIN 430 - 371 -44 CITY OF TUSTIN 430 - 371 -45 CITY OF TUSTIN 430- 371 -46 CITY OF TUSTIN 430 - 371 -47 CITY OF TUSTIN 430 - 371 -48 CITY OF TUSTIN 430 - 371 -49 CITY OF TUSTIN 430 - 371 -50 CITY OF TUSTIN 430 - 371 -51 CITY OF TUSTIN 430 - 371 -52 CITY OF TUSTIN 430 - 371 -53 CITY OF TUSTIN 430- 371 -54 CITY OF TUSTIN 430 - 371 -55 CITY OF TUSTIN 430 - 371 -56 CITY OF TUSTIN 430- 371 -57 CITY OF TUSTIN 430 - 371 -58 CITY OF TUSTIN 430 - 371 -59 CITY OF TUSTIN 430- 371 -60 CITY OF TUSTIN 430 - 371 -61 CITY OF TUSTIN 430 - 371 -67 CITY OF TUSTIN 430- 371 -68 CITY OF TUSTIN 430- 371 -69 CITY OF TUSTIN 430- 371 -70 CITY OF TUSTIN 430- 371 -71 CITY OF TUSTIN 430 - 371 -72 CITY OF TUSTIN 430- 371 -73 CITY Of TUSTIN 430- 371 -74 CITY OF TUSTIN 430 - 371 -75 CITY OF TUSTIN 430- 381 -26 CITY OF TUSTIN C -3 ASSESSOR'S PARCEL NUMBER LANDOWNER 430 - 381 -27 CITY OF TUSTIN 430- 381 -29 CITY OF TUSTIN 430 - 381 -30 CITY OF TUSTIN 430 - 381 -32 CITY OF TUSTIN 430 - 381 -33 CITY OF TUSTIN 430- 381 -36 CITY OF TUSTIN 430 - 381 -37 CITY OF TUSTIN 430 - 381 -43 CITY OF TUSTIN 430 - 381 -62 CITY OF TUSTIN 430 - 381 -64 CITY OF TUSTIN 430 - 381 -65 CITY OF TUSTIN 430 - 381 -67 CITY OF TUSTIN 430 - 381 -74 CITY OF TUSTIN 430- 391 -09 CITY OF TUSTIN 430 - 391 -12 CITY OF TUSTIN 430 - 391 -18 CITY OF TUSTIN 430- 391 -31 CITY OF TUSTIN 430 - 391 -33 CITY OF TUSTIN 430 - 391 -34 CITY OF TUSTIN 430 - 391 -35 CITY OF TUSTIN 430 - 391 -36 CITY OF TUSTIN 430 - 391 -37 CITY OF TUSTIN 430 - 391 -38 CITY OF TUSTIN 430- 391 -39 CITY OF TUSTIN 430- 391 -40 CITY OF TUSTIN 430- 391 -41 CITY OF TUSTIN 430- 391 -71 CITY OF TUSTIN C -4 RESOLUTION NO. 13 -29 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, CALLING SPECIAL ELECTION FOR CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 13 -01 WHEREAS, on this date, the City Council (the "City Council ") of the City of Tustin (the "City ") adopted, pursuant to the Mello -Roos Community Facilities Act of 1982 (the "Act "), a resolution entitled "A Resolution of the City Council of the City of Tustin, California, of Formation of City of Tustin Community Facilities District No. 13- 01 Authorizing the Levy of a Special Tax within the District and Establishing an Appropriations Limit for the District" (the "Resolution of Formation "), establishing City of Tustin Community Facilities District No. 13 -1 (the "Community Facilities District "); and WHEREAS, the City Council desires to designate the City Clerk of the City (the "City Clerk ") as the election official for the special election provided for herein; and WHEREAS, there has been filed with the City Clerk a letter from the Registrar of the County of Orange indicating that 12 or more persons have not been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close of the public hearings on the establishment of the Community Facilities District and the proposed debt issue for the Community Facilities District; WHEREAS, there has been filed with the City Clerk consents and waivers of all of the landowners of record in the Community Facilities District waiving any time limit specified by Section 53326 of the Act and any requirement pertaining to the conduct of said special election, including any time limit or requirement applicable to an election pursuant to Article 5, Chapter 2.5, Division 3, Title 5 of the Act (commencing with Section 53345 of the Act), consenting to the holding of said special election on May 7, 2013 and waiving any impartial analysis, arguments or rebuttals, as set forth in Sections 53326 and 53327 of the Act; and WHEREAS, the City Clerk has concurred in said waivers and has concurred in holding said special election on May 7, 2013; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tustin as follows: Section 1. Pursuant to Sections 53326 and 53325.7 of the Act, the propositions to establish an appropriations limit for and to levy a special tax within the Community Facilities District shall be submitted to the qualified electors of the Community Facilities District at an election called therefor as provided below. Section 2. The City Clerk is hereby designated as the official to conduct said election. Section 3. As authorized by Section 53353.5 of the Act, the propositions to levy a special tax within the Community Facilities District and to establish an Resolution No. 13 -29 Page 1 of 6 appropriations limit for the Community Facilities District shall be combined into one ballot proposition. Section 4. The City Council hereby finds and determines that 12 or more persons have not been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close of the public hearings heretofore held by the City Council on the establishment of the Community Facilities District and the proposed debt issue for the Community Facilities District. Accordingly, pursuant to Section 53326 of the Act, the vote shall be by the landowners of the Community Facilities District and each landowner who is the owner of record as of the close of said public hearings, or the authorized representative thereof, shall have one vote for each acre or portion of an acre that he or she owns within the Community Facilities District. Section 5. The City Council hereby finds and determines that the qualified electors of the Community Facilities District have unanimously consented (a) to the waiver of any time limit specified by Section 53326 of the Act and any requirement pertaining to the conduct of said election, including any time limit or requirement applicable to an election pursuant to Article 5, Chapter 2.5, Division 3, Title 5 of the Act (commencing with Section 53345 of the Act); (b) to the holding of said election on May 7, 2013; and (c) to the waiver of any impartial analysis, arguments or rebuttals, as set forth in Sections 53326 and 53327 of the Act. The City Council herby finds and determines that the City Clerk has concurred in said waivers and has concurred in holding said election on May 7, 2013. Section 6. The City Council hereby calls a special election to submit to the qualified electors of the Community Facilities District the combined proposition to levy a special tax within the Community Facilities District and to establish an appropriations limit for the Community Facilities District, which election shall be held at 300 Centennial Way, Tustin, California, on May 7, 2013. The City Council has caused to be provided to the City Clerk, as the official to conduct said election, the Resolution of Formation, a certified map of sufficient scale and clarity to show the boundaries of the Community Facilities District, and a sufficient description to allow the City Clerk to determine the boundaries of the Community Facilities District. Section 7. The voted ballots shall be returned to the City Clerk not later than 10:00 p.m. on May 7, 2013; provided, however, that if all of the qualified electors have voted prior to such time, the election may be closed with the concurrence of the City Clerk. Section 8. Pursuant to Section 53327 of the Act, the election shall be conducted by mail or hand - delivered ballot pursuant to Section 4000 of the California Elections Code and the City Council finds that paragraphs (a), (b), (c)(1) of said Section 4000 are applicable to this special election. Section 9. The form of the ballot for said election is attached hereto as Exhibit "A" and by this reference incorporated herein, and such form of ballot is hereby approved. The City Clerk shall cause to be delivered to each of the qualified electors Resolution No. 13 -29 Page 2 of 6 of the Community Facilities District a ballot in said form. Each ballot shall indicate the number of votes to be voted by the respective landowner to which it pertains. Section 10. Each ballot shall be accompanied by all supplies and written instructions necessary for the use and return of the ballot. The identification envelope for return of the ballot shall be enclosed with the ballot, shall have the return postage prepaid, and shall contain: (a) the name and address of the landowner; (b) a declaration, under penalty of perjury, stating that the voter is the owner of record or the authorized representative of the landowner entitled to vote and is the person whose name appears on the identification envelope; (c) the printed name, signature and address of the vote; (d) the date of signing and place of execution of the declaration described in clause (b) above; and (e) a notice that the envelope contains an official ballot and is to be opened only by the canvassing board. Section 11. Analysis and arguments with respect to the ballot proposition are hereby waived, as provided in Section 53327 of the Act. Section 12. The City Clerk shall accept the ballots of the qualified electors in the office of the City Clerk at 300 Centennial Way, Tustin, California, up to and including 10:00 p.m. on May 7, 2013, whether said ballots be personally delivered or received by mail. The City Clerk shall have available ballots which may be marked at said location on the election day by said qualified electors. Section 13. The City Council hereby determines that the services financed by the Community Facilities District are necessary to meet increased demands placed upon the City as a result of development occurring in the Community Facilities District. Section 14. The officers, employees and agents of the City are hereby authorized and directed to take all actions and do all things which they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof. Section 15. This Resolution shall take effect immediately upon its adoption. PASSED and ADOPTED at a regular meeting of the City Council of the City of Tustin held on May 7, 2013. ELWYN A. MURRAY Mayor Resolution No. 13 -29 Page 3 of 6 ATTEST: JEFFREY C. PARKER City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF TUSTIN ) I, Jeffrey C. Parker, 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 of the City of Tustin is five; and that the above and foregoing Resolution No. 13 -29 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 7th day of May, 2013 by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES; COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT JEFFREY C. PARKER City Clerk Resolution No. 13 -29 Page 4 of 6 EXHIBIT A OFFICIAL BALLOT CITY OF TUSTIN May 7, 2013 SPECIAL ELECTION This ballot is for a special landowner election. The number of votes to be voted pursuant to this ballot are _ INSTRUCTIONS TO VOTERS: To vote on the proposition, mark a cross ( +) or (X) in the voting square after the word "YES" or after the word "NO ". All distinguishing marks or erasures are forbidden and make the ballot void. If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of Tustin and obtain another. CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 13 -01 PROPOSITION: Shall City of Tustin Community Facilities District No. 13 -01 (the "Community Facilities District ") be authorized to levy a special tax in order to finance certain services and shall the annual appropriations limit of the Community Facilities District be established in the amount of $4,000,000, all as specified in the Resolution entitled "A Resolution of the City Council of the City of Tustin of Formation of City of Tustin Community Facilities District No. 13 -01, Authorizing the Levy of a Special Tax within the District and Establishing an Appropriations Limit for the District ", adopted by the City Council of the City of Tustin on May 7, 2013? Resolution No. 13 -29 Page 5 of 6 A Yes: [ ] No: [ ] CLERK'S CERTIFICATE STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF TUSTIN I, Jeffrey C. Parker, City Clerk of the City of Tustin, California hereby certify that the foregoing is a full, true and correct copy of a Resolution duly adopted at a regular meeting of the City Council of said City duly and regularly held at the regular meeting place thereof on May 7, 2013, of which meeting all of the members of said City Council had due notice and at which a majority thereof were present; and that at said meeting said Resolution was adopted by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: An agenda of said meeting was posted at least 72 hours before said meeting at 300 Centennial Way, Tustin, California, a location freely accessible to members of the public, and a brief general description of said Resolution appeared on said agenda. I further certify that I have carefully compared the same with the original minutes of said meeting on file and of record in my office; that the foregoing Resolution is a full, true and correct copy of the original Resolution adopted at said meeting and entered in said minutes; and that said Resolution has not been amended, modified or rescinded since the date of its adoption, and the same is now in full force and effect. Dated: , 2013 Jeffrey C. Parker, City Clerk Resolution No. 13 -29 Page 6 of 6 OFFICIAL BALLOT CITY OF TUSTIN May 7, 2013 SPECIAL ELECTION This ballot is for a special landowner election. The number of votes to be voted pursuant to this ballot are 518. INSTRUCTIONS TO VOTERS: To vote on the proposition, mark a cross ( +) or (X) in the voting square after the word "YES" or after the word "NO ". All distinguishing marks or erasures are forbidden and make the ballot void. If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of Tustin and obtain another. CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 13 -01 PROPOSITION: Shall City of Tustin Community Facilities District No. 13 -01 (the "Community Facilities District ") be authorized to levy a special tax in order to finance certain services and shall the annual appropriations limit of the Community Facilities District be established in the amount of $4,000,000, all as specified in the Resolution entitled "A Resolution of the City Council of the City of Tustin of Formation of City of Tustin Community Facilities District No. 13 -01, Authorizing the Levy of a Special Tax within the District and Establishing an Appropriations Limit for the District ", adopted by the City Council of the City of Tustin on May 7, 2013? 925142.1 Yes: [ ] No:[] RESOLUTION NO. 13 -30 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, DECLARING RESULTS OF SPECIAL ELECTION AND DIRECTING RECORDING OF NOTICE OF SPECIAL TAX LIEN WHEREAS, on May 7, 2013, the City Council of the City of Tustin (the "City Council ") adopted, pursuant to the Mello -Roos Community Facilities Act of 1982 (the "Act "), a resolution entitled "A Resolution of the City Council of the City of Tustin, California Calling Special Election for City of Tustin Community Facilities District No. 13 -01" (the "Resolution Calling Election "), calling for a special election of the qualified electors within City of Tustin Community Facilities District No. 13 -01 (the "Community Facilities District "); and WHEREAS, pursuant to the terms of the Resolution Calling Election and the provisions of the Act, the special election was held on May 7, 2013; and WHEREAS, the City Clerk of the City (the "City Clerk ") has certified the canvass of the returns of the election and has filed a Canvass and Statement of Results of Election (the "Canvass "), a copy of which is attached hereto as Exhibit "A ". NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tustin as follows: Section 1. The City Council has received, reviewed and hereby accepts the Canvass. Section 2. The City Council hereby finds and declares that the ballot proposition submitted to the qualified electors of the Community Facilities District pursuant to the Resolution Calling Election has been passed and approved by such electors in accordance with Section 53328(a), Section 53355 and Section 53325.7 of the Act. Section 3. The City Clerk is hereby directed to execute and cause to be recorded in the office of the County Recorder of Orange County a notice of special tax lien in the form required by the Act, said recording to occur no later than 15 days following adoption by the City Council of this Resolution. Section 4. The officers, employees and agents of the City are hereby authorized and directed to take all actions and do all things which they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof. Resolution No. 13 -30 Page 1 of 4 Section 5. This Resolution shall take effect immediately upon its adoption. PASSED and ADOPTED at a regular meeting of the City Council of the City of Tustin held on May 7, 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 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 of the City of Tustin is five; and that the above and foregoing Resolution No. 13 -30 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 7m day of May, 2013 by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES; COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT JEFFREY C. PARKER City Clerk Resolution No. 13 -30 Page 2 of 4 EXHIBIT A CANVASS AND STATEMENT OF RESULTS OF ELECTION CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 13 -01 I hereby certify that on May 7, 2013, I canvassed the returns of the special election held on May 7, 2013, for City of Tustin Community Facilities District No. 13- 01, that the total number of ballots cast in said Community Facilities District and the total number of votes cast for and against the proposition are as follows and that the totals as shown for and against the proposition are true and correct: Qualified Landowner Votes: Votes Cast YES NO City of Tustin Community Facilities District No. 13 -01 Special Election: May 7, 2013 PROPOSITION: Shall City of Tustin Community Facilities District No. 13 -01 (the "Community Facilities District ") be authorized to levy a special tax in order to finance certain services and shall the annual appropriations limit of the Community Facilities District be established in the amount of $4,000,000, all as specified in the Resolution entitled "A Resolution of the City Council of the City of Tustin of Formation of City of Tustin Community Facilities District No. 13 -1, Authorizing the Levy of a Special Tax within the District and Establishing an Appropriations Limit for the District ", adopted by the City Council of the City of Tustin on May 7, 2013? IN WITNESS WHEREOF, I have hereunto set my hand this 7th day of May, 2013. Jeffrey C. Parker, City Clerk Resolution No. 13 -30 Page 3 of 4 CLERK'S CERTIFICATE STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF TUSTIN I, Jeffrey C. Parker, City Clerk of the City of Tustin, California hereby certify that the foregoing is a full, true and correct copy of a Resolution duly adopted at a regular meeting of the City Council of said City duly and regularly held at the regular meeting place thereof on May 7, 2013, of which meeting all of the members of said City Council had due notice and at which a majority thereof were present; and that at said meeting said Resolution was adopted by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: An agenda of said meeting was posted at least 72 hours before said meeting at 300 Centennial Way, Tustin, California, a location freely accessible to members of the public, and a brief general description of said Resolution appeared on said agenda. I further certify that I have carefully compared the same with the original minutes of said meeting on file and of record in my office; that the foregoing Resolution is a full, true and correct copy of the original Resolution adopted at said meeting and entered in said minutes; and that said Resolution has not been amended, modified or rescinded since the date of its adoption, and the same is now in full force and effect. Dated: , 2013 Jeffrey C. Parker, City Clerk Resolution No. 13 -30 Page 4 of 4 ORDINANCE NO. 1431 AN ORDINANCE OF THE CITY OF TUSTIN, CALIFORNIA, LEVYING SPECIAL TAXES WITHIN CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 13 -01 WHEREAS, on March 5, 2013, the City Council of the City of Tustin (the "City Council "), pursuant to the Mello -Roos Community Facilities Act of 1982 (the "Act "), adopted a resolution entitled "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" stating its intention to establish City of Tustin Community Facilities District No. 13 -01 (the "Community Facilities District ") and to finance certain public services (the "Services ") and administrative expenses ( "Administrative Expenses ") and setting the date for a public hearing to be held on the establishment of the Community Facilities District; and WHEREAS, on April 16, 2013, the City Council held a public hearing and determined to continue the public hearing to May 7, 2013; and WHEREAS, on May 7, 2013, the City Council held a noticed public hearing on the establishment of the Community Facilities District as required by the Act; and WHEREAS, subsequent to the close of said hearing, on May 7, 2013, the City Council adopted resolutions entitled "A Resolution of the City Council of the City of Tustin, California, of Formation of City of Tustin Community Facilities District No. 13 -01, Authorizing the Levy of a Special Tax within the District and Establishing an Appropriations Limit for the District" (the "Resolution of Formation "); and "A Resolution of the City Council of the City of Tustin, California, Calling Special Election for City of Tustin Community Facilities District No. 13 -01" (the "Resolution Calling Election "), which resolutions established the Community Facilities District, authorized the levy of a special tax within the Community Facilities District, established an appropriations limit for the Community Facilities District and called for an election of same; and WHEREAS, subsequent to the close of said hearing and adoption of the Resolution of Formation and Resolution Calling Election on May 7, 2013, an election was held in which the qualified electors of the Community Facilities District approved said proposition by more than the two - thirds vote required by the Act. THE CITY COUNCIL OF THE CITY OF TUSTIN DOES ORDAIN AS FOLLOWS: Section 1. The City Council hereby authorizes and levies special taxes within the Community Facilities District pursuant to Sections 53328 and 53340 of the Act, at the rate and in accordance with the method of apportionment set forth in Exhibit "A" to the Resolution of Formation (the "Rate and Method of Apportionment "). The special taxes are hereby levied commencing in fiscal year 2013 -14 and in each fiscal year thereafter. Section 2. The City Council may, in accordance with subdivision (b) of Section 53340 of the Act, provide, by resolution, for the levy of the special tax in future tax years at the same rate or at a lower rate than the rate provided by this Ordinance. In no event shall the special tax be levied on any parcel within the Community Facilities District in excess of the maximum tax specified in the Rate and Method of Apportionment. Section 3. The special tax shall be levied on all of the parcels in the Community Facilities District, unless exempted by law or by the Rate and Method of Apportionment. Section 4. The proceeds of the special tax shall only be used to pay, in whole or in part, the cost of providing the Services and Administrative Expenses pursuant to the Act. Section 5. The special tax shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in the case of delinquency as is provided for ad valorem taxes, unless another procedure is adopted by the City Council. Section 6. If for any reason any portion of this Ordinance is found to be invalid, or if the special tax is found inapplicable to any particular parcel within the Community Facilities District, by a court of competent jurisdiction, the balance of this Ordinance and the application of the special tax to the remaining parcels within the Community Facilities District shall not be affected. Section 7. This Ordinance shall take effect and shall be in force 30 days after the date of its adoption and prior to the expiration of 15 days from the passage thereof shall be published at least once in the Tustin News, a newspaper of general circulation, printed and published in the City of Tustin, State of California, together with the names of the City Council members voting for and against the same. PASSED and ADOPTED this day of May, 2013, by the City Council of the City of Tustin, California. ELWYN A. MURRAY Mayor ATTEST: JEFFREY C. PARKER City Clerk 2 APPROVED AS TO FORM: City Attomey CLERK'S CERTIFICATE STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF TUSTIN I, Jeffrey C. Parker, City Clerk of the City of Tustin, California hereby certify that the foregoing is a full, true and correct copy of the Ordinance introduced at a regular meeting of the City Council of the City of Tustin duly held on May 7, 2013, of which meeting all of the members of said City Council had due notice and at which a majority thereof were present; and was finally passed and adopted not less than five days thereafter on May 21, 2013, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: An agenda of said meeting was posted at least 72 hours before said meeting at 300 Centennial Way, Tustin, California, a location freely accessible to members of the public, and a brief general description of said Ordinance appeared on said agenda. I further certify that I have carefully compared the same with the original minutes of said meeting on file and of record in my office; that the foregoing Ordinance is a full, true and correct copy of the original Ordinance adopted at said meeting and entered in said minutes; and that said Ordinance has not been amended, modified or rescinded since the date of its adoption, and the same is now in full force and effect. Dated: , 2013 4 Jeffrey C. Parker, City Clerk FIRST AMENDED 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 25, 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 I- Iealth 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 March 13, 2013 in the Orange County Recorder's Office in Book 97, Page 37, of Maps of Assessments and Community Facilities Districts (instrument number 2013- 152922). "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 arca. 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. "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 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. "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. "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. "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. "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 Taxable Property for which a Building Permit has been issued by the City for the construction of one or more non - residential buildings or facilities. City of Tustin 2 CFD No. 13 -01 (Services) "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. "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 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. "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 Taxable 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. "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, (u) 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 or Undeveloped Property. Lastly, each such Fiscal Year, each Assessor's Parcel of Developed Property shall be further classified by the CFD Administrator as 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- City of Tustin 3 CFD No. 13 -01 (Services) 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. 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 %. City of Tustin 4 CFD No. 13 -01 (Services) 2. Undeveloped Property For any Fiscal Year, each Assessor's Parcel classified as Undeveloped Property shall be exempt from the levy of Special Taxes. 3. 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. 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 "faxes levied equals the Special Tax Requirement. The Special "fax shall be levied Proportionately on each Assessor's Parcel of Developed Property, up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax Requirement. 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'f'ax. 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 5 CFD No. 13 -01 (Services)