HomeMy WebLinkAbout02 PUBLIC HEARING - COMMUNITY FACILITIES DIST. NO. 2014-1AGENDA REPORT RAgenda
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City Manager
Finance Director
MEETING DATE: JUNE 17, 2014
TO: JEFFREY C. PARKER, CITY MANAGER
FROM: PAMELA ARENDS -KING, FINANCE DIRECTOR /CITY TREASURER
SUBJECT: CONDUCT A PUBLIC HEARING AND HOLD A SPECIAL ELECTION
FOR CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2014-
1 ( TUSTIN LEGACY /STANDARD PACIFIC) AND ADOPT VARIOUS
RESOLUTIONS AND ORDINANCE 1445 ESTABLISHING THE
DISTRICT
SUMMARY:
The City's Development Disposition Agreement dated as of March 4, 2014 (the "DDA ") with
Standard Pacific Corporation ( "Standard Pacific ") sets forth the terms and conditions whereby
the City intends to convey the property located in the Legacy Project to Standard Pacific
which will develop the property into 375 single family homes, a focal park, and other
neighborhood amenities. The DDA provides for the establishment of a community facilities
district to provide for financing of certain facilities and services.
Approval of the recommended action is the last step to establish the CFD for the property,
authorize special taxes and incur a bonded indebtedness.
RECOMMENDATION:
It is recommended that the City Council receive and file the Community Facilities District
Report prepared by Albert A. Webb & Associates and conduct a public hearing regarding (a)
the establishment of Community Facilities District No. 2014 -1 (Tustin Legacy /Standard
Pacific) ( "CFD No. 2014 -1 ") and (b) the necessity to incur bonded indebtedness for CFD No.
2014 -1.
If, following such public hearing, no majority protest has been filed pertaining to the
establishment of CFD No. 2014 -1 or the levy of special taxes within CFD No. 2014 -1, the City
Council may initially adopt the following resolutions:
1) Resolution No. 14 -40, a resolution of the City Council of the City of Tustin
establishing Community Facilities District No. 2014 -1 (Tustin Legacy /Standard
Pacific) and authorizing the levy of special taxes, waiving certain election
procedures and calling an election.
2) Resolution No. 14 -41, a resolution of the City Council of the City of Tustin, acting
as the legislative body of the City of Tustin Community Facilities District No. 2014 -1
(Tustin Legacy /Standard pacific), determining the necessity to incur bonded
indebtedness within the district and calling an election.
CONDUCT PUBLIC HEARING AND HOLD ELECTION TO APPROVE FORMATION OF CFD NO. 2014 -1 (TUSTIN LEGACY /
STANDARD PACIFIC)
JUNE 17, 2014 PAGE 2
Following the adoption of the above resolutions, request that the City Clerk tabulate the
ballots cast in the special election to be held within CFD No. 2014 -1 to enable the qualified
electors of CFD No. 2014 -1 to consider ballot questions regarding (a) the authorization to
levy special taxes within CFD No. 2014 -1, (b) the authorization to issue bonds secured by the
levy of such special taxes and (c) the establishment of an appropriations limit for CFD No.
2014 -1.
If the results of the special election reveal that the propositions have received the affirmative
vote of two- thirds of the votes cast, take the following actions:
1. Adopt Resolution No. 14 -42, a resolution of the City Council of the City of Tustin,
acting in its capacity as the legislative body of the City of Tustin Community Facilities
District No. 2014 -1 (Tustin Legacy /Standard Pacific), certifying the results of the June
17, 2014 special tax and bond elections; and
2. Adopt a motion to introduce and waive the first reading of Ordinance 1445 levying
special taxes within CFD No. 2014 -1.
FISCAL IMPACT
The recommended action carries no immediate fiscal impact. The establishment of the CFD
will occur after tonight's public hearing. Any obligation of the City to pay the financing team's
costs for CFD establishment will be reimbursed out of the sales price of the land sold to
Standard Pacific or from future CFD bond proceeds. The fee of the underwriter will be
incurred when Community Facilities District No. 2014 -1 (Tustin Legacy /Standard Pacific)
Bonds are sold after the formation of the CFD and is fully contingent on the successful sale of
bonds.
BACKGROUND AND DISCUSSION:
The City of Tustin is the fee title owner of 100% of the real property (the "Property ") located in
the Legacy Project described in a Development Disposition Agreement, by and between the
City and Standard Pacific Corp., a Delaware corporation ( "Standard Pacific ") dated as of
March 4, 2014 (the "DDA "). On December 10, 2013, the Planning Commission adopted
Resolution No. 4239 recommending that the City approve the proposed project to construct
375 single family detached units, a focal park, and other neighborhood amenities ( "Proposed
Project "). Further, on February 4, 2014, the City Council approved the DDA, Specific Plan
Amendment 2013 -002 and Resolution No. 14 -14 approving the concept plan for the project.
The DDA provides for the establishment of a community facilities district to provide for
financing of certain facilities and services. The Mello -Roos Community Facilities Act of 1982,
as amended, commencing with Section 53311 of the Government Code (the "Act ") is the
authorizing act and pursuant to Section 53318(a) of the Act, the City Council will receive a
written request from two of its City Councilpersons to commence proceedings to form a
CONDUCT PUBLIC HEARING AND HOLD ELECTION TO APPROVE FORMATION OF CFD NO. 2014 -1 (TUSTIN LEGACY /
STANDARD PACIFIC)
JUNE 17, 2014 PAGE 3
community facilities district with boundaries coterminous with the Property to be known as the
"City of Tustin Community Facilities District No. 2014 -1 (Tustin Legacy /Standard Pacific)."
CFD financing is a commonly -used method of financing infrastructure and services for new
development in California. Commonly referred to as "Mello- Roos," this land- secured financing
permits the local agency (i.e., the City) to issue bonds to pay for the public facilities and
infrastructure costs and services of local development. Debt service on the bonds is paid
from special taxes levied on real property within the CFD boundary. The bonds are issued on
a tax - exempt basis at the federal and state level.
Pursuant to the DDA, City staff and its financing consultants have been working to identify the
improvements and services to be financed through the CFD, define the CFD boundaries, and
develop the special tax to be levied within the CFD. With the approval of Tentative Tract Map
17507 and Ordinance Nos. 1440 and 1441, the Council may initiate proceedings to consider
the establishment of a CFD for the project. The Community Facilities District Report for CFD
2014 -1 and Resolution No. 14 -40 defined the two special taxes (Special Tax A and Special
Tax B) for this CFD based on the newly constructed dwellings' square footage. Combined,
the special tax rates do not exceed 2% of assessed value. Special Tax A is collected for the
purpose of paying off bonded indebtedness incurred due to the construction of facilities and
infrastructure. The purpose of Special Tax B is to fund the maintenance of streets,
sidewalks, parks and public safety. Total bonded indebtedness will not exceed $29 million.
The Tustin Unified School District (TUSD) chose to participate in CFD 2014 -1, therefore the
total bonded indebtedness will include the financing of the construction of school district
facilities.
On May 6`", 2014, the City Council approved the Resolution of Intention for CFD No. 2014 -1
and set the time and place for tonight's Public Hearing.
The balance of this report summarizes the resolutions, actions and related documents
presented for approval at tonight's Public Hearing, and discusses the remaining steps after
CFD No. 2014 -1 is formed.
PUBLIC HEARING AND TONIGHT'S ACTIONS:
The City Council has initiated proceedings to consider the establishment of a community
facilities district pursuant to the provisions of the Act. Tonight's Public Hearing will provide the
public an opportunity to provide testimony related to the formation of CFD No. 2014 -1 and the
CFD Report (attached) prepared by Albert A. Webb & Associates. The CFD Report describes
the CFD boundaries, the rate and method of apportionment of the special taxes to be levied
and the facilities to be financed by the CFD. The proceedings to establish CFD No. 2014 -1
will be accomplished by the adoption of the Formation Resolutions, as well as the other
Resolutions and Ordinance, identified in the recommended actions. The City Council will be
taking certain actions including:
1. Adopt the Resolution No. 14 -40. This resolution establishes the boundaries of the
CFD, the rate and method of apportionment of the special taxes to be levied to provide
CONDUCT PUBLIC HEARING AND HOLD ELECTION TO APPROVE FORMATION OF CFD NO. 2014 -1 (TUSTIN LEGACY /
STANDARD PACIFIC)
JUNE 17, 2014 PAGE 4
for certain services in CFD No. 2014 -1 and to pay the cost of the facilities to be
financed by the CFD. It also 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, thus the vote will be by the owners of the land.
2. Adopt the Resolution No. 14-41. This resolution declares that bonds of the CFD may
be issued in order to finance the public capital improvements described in the
resolution establishing the CFD and calls an election to approve bonds in an amount
not to exceed $29 million.
After the Resolution of Necessity to Incur Bonded Indebtedness and Calling the Special
Election is adopted, the City Clerk will open the ballots and state the results of the election. If
the results of the special election reveal that the propositions have received the affirmative
vote of two- thirds of the votes cast, the City Council will then:
1. Adopt Resolution No. 14-42 declaring the results of the consolidated special
election for CFD No. 2014 -1
2. Adopt a motion to introduce and waive the first reading of Ordinance 1445 levying
special taxes within CFD No. 2014 -1.
CONCLUSION AND NEXT STEPS:
The formation of the CFD will occur after tonight's public hearing. At the hearing, the Council
will be presented with information regarding the CFD, the special taxes, and public facilities
and services. The public will also have the opportunity to comment on the CFD. After the
conclusion of the public hearing the Council may take the following actions:
1. Adopt a resolution establishing the CFD
2. Call special election
3. Conduct the special landowner election
4. Adopt a resolution declaring the results of the election
5. Introduce for first reading an ordinance authorizing the levy of special taxes
The City Council may establish CFD No. 2014 -1 only after conducting the public hearing and
only if no majority protests to establishment of CFD No. 2014 -1 or the levy of special taxes
are filed by the CFD landowners. Following tonight's public hearing, the proposed schedule
to complete the formation of the CFD is as follows:
• July 1, 2014: Second reading of ordinance authorizing special tax levy
• July 15, 2014: Ordinance authorizing special tax levy goes into effect
The resolutions and related documents have been prepared and reviewed by the City's
finance team, which includes bond counsel, disclosure counsel, financial advisor, and special
tax consultant.
CONDUCT PUBLIC HEARING AND HOLD ELECTION TO APPROVE FORMATION OF CFD NO. 2014 -1 (TUSTIN LEGACY /
STANDARD PACIFIC)
JUNE 17, 2014 PAGE 5
It is anticipated that the CFD bond sale would occur in late 2014.
Pamela Arends -King
Finance Director /City Treasurer
ATTACHMENTS:
1.
CFD Report
2.
Resolution No. 14 -40
3.
Resolution No. 14 -41
4.
Resolution No. 14 -42
5.
Ordinance 1445
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Table of Contents
Section 1
Introduction
Section 2
Description of Facilities /Improvements
Section 3
Cost Estimate
Section 4
Proposed Development
Section 5
Rates and Method of Apportionment
Table 1: Cost Estimate
Appendix A: Rate and Method of Apportionment
Appendix B: Boundary Map
1
2
4
5
6
4
A -1
B -1
Introduction
AGENCY: CITY OF TUSTIN
PROJECT: COMMUNITY FACILITIES DISTRICT NO. 2014 -1
(TUNSTIN LEGACY /STANDARD PACIFIC)
TO: CITY COUNCIL
CITY OF TUSTIN
ORANGE COUNTY
STATE OF CALIFORNIA
WHEREAS, the City Council of the CITY OF TUSTIN, ORANGE COUNTY, CALIFORNIA (hereinafter referred
to as the "Council'), did, pursuant to the provisions of the "Mello -Roos Community Facilities Act of
1982 ", being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California,
and specifically Section 53321.5 thereof, (the "Act') expressly ordered the filing of a written Public
Report (the "Report") with the Council for a proposed Community Facilities District. This Community
Facilities District shall be referred to as THE CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO.
2014 -1 (TUSTIN LEGACY /STANDARD PACIFIC) (hereinafter referred to as the "District' and "CFD No.
2014 -1 "); and,
WHEREAS, on May 6, 2014, the City Council adopted Resolution No. 14 -34 (the "Resolution "), and the
Resolution ordering said Report, did direct that said Report generally contain the following:
A brief description of the public and school district facilities and services by type which will be
required to meet adequately the needs of CFD No. 2014 -1; and
• An estimate setting forth costs of providing those public and school district facilities and
services.
NOW, THEREFORE, the undersigned, authorized representative of ALBERT A. WEBB ASSOCIATES, the
appointed Special Tax Consultant, for and on behalf of the Director of Public Works of the City being
the person directed to prepare the Report, pursuant to the provisions of the Act, does hereby submit
the data set forth in the following pages.
DATED June 5, 2014 ALBERTA WEBB ASSOCIATES,
for and on behalf of the Director of Public Works of the City
/ t
By: C ,G
SPECIAL TAX CONSULTANT FOR
THE CITY OF TUSTIN
ORANGE COUNTY
STATE OF CALIFORNIA
City of Tustin Community Facilities District Report Page 1
Community Facilities District No. 2014-1 (Tustin Legacy /Standard Pacific)
Description of Facilities /Improvements and Services
i
Pursuant to Section 53340 of the Act, the proceeds of any Special Tax levied and collected by CFD No.
2014 -1 may be used only to pay for the cost of providing public facilities, services, and incidental
expenses. As defined by the Act, incidental expenses include, but are not limited to, the annual costs
associated with determination of the amount of special taxes, collection of special taxes, payment of
special taxes, or costs otherwise incurred in order to carry out the authorized purposes of the
community facilities district.
CITY FACILITIES
The types of City Facilities that are proposed to be financed by CFD No. 2014 -1 with the proceeds of
special taxes and bonds issued by CFD No. 2014 -1, as set forth in Exhibit B to the Resolution, consist of
backbone infrastructure needed for new development, such as roadway, bridge, sewer, water,
reclaimed water, dry utilities, storm drain, street and parkway landscaping, curb and gutter, medians,
median landscaping, traffic signals, entry signage, parks, trails, fire facilities, and appurtenances and
appurtenant work.
The City Facilities are necessary for development of the property within the boundaries of CFD No.
2014 -1 and are generally intended to comply with the requirements of Tustin Legacy Backbone
Infrastructure Program of the City.
The description of City Facilities is general in nature. The final nature and location of the City Facilities
will be determined upon preparation of final plans and specifications. Addition, deletion or
modification of descriptions of the City Facilities may be made consistent with the requirements of the
City Council of the City, CFD No. 2014 -1 and the Act.
SCHOOL DISTRICT FACILITIES
The proposed School District Facilities, as set forth in Exhibit B to the Resolution, include the
construction, purchase, modification, expansion, improvement and /or rehabilitation of school facilities
to be owned and operated by the Tustin Unified School District including, without limitation,
classrooms, multi - purpose, administration and auxiliary space at a school, and interim housing,
together with furniture, equipment and technology, needed by the Tustin Unified School District in
order to mitigate the impact on school facilities of the student population to be generated as a result
of the development of the property to be included within CFD No. 2014 -1, together with all land or
interests in land required for the construction of such school facilities and all land or interests in land
required to be provided by the Tustin Unified School District as mitigation of environmental impacts
associated with the development of such school facilities, and a proportionate share of the costs of
central support and administrative facilities, transportation and special education facilities, including
any incidental school administration and transportation center improvements.
The School District Facilities listed herein are representative of the types of facilities authorized to be
financed by CFD No. 2014 -1. Detailed scope and limits of specific projects will be determined as
appropriate, consistent with the standards of the Tustin Unified School District. Addition, deletion or
modification of descriptions of the School District Facilities may be made consistent with the
requirements defined in an agreement between the City of Tustin and the Tustin Unified School
District, CFD No. 2014 -1 and the Act.
City of Tustin Community Facilities District Report Page 2
Community Facilities District No. 2014 -1 (Tustin Legacy /Standard Pacific)
Descri tp ion of Facilities /Improvements and Services
i
TYPES OF SERVICES
The types of Services that are proposed to be provided by CFD No. 2014 -1 and funded with the
proceeds of Special Tax B levied by CFD No. 2014 -1, as set forth in Exhibit B to the Resolution, consist
of services permitted to be financed under the Mello -Roos Community Facilities Act of 1982 including,
without limitation, police and fire protection, ambulance and paramedic services, street sweeping,
traffic signal maintenance and the maintenance of City -owned parks, parkways and open spaces,
lighting, flood and storm protection services and the operation of storm drainage systems. All of the
services to be financed must be in addition to those provided within the boundaries of CFD No. 2014 -1
before CFD No. 2014 -1 is created, and shall not supplant services already available within that territory
when CFD No. 2014 -1 is created.
TYPES OF INCIDENTAL EXPENSES
The Incidental Expenses to be paid from bond proceeds and /or special taxes, as set forth in Exhibit B to
the Resolution, include: All costs associated with the creation of CFD No. 2014 -1, the issuance of the .
Obligations (as defined in the Resolution), the determination of the amount of special taxes to be
levied, costs incurred in order to carry out the authorized purposes of CFD No. 2014 -1, including legal
fees, fees of consultants, engineering, planning, designing and the annual costs to administer CFD No.
2014 -1 and any Obligations.
Based upon the above, it is my opinion that the facilities being funded are those that are necessary to
meet certain increased demands placed upon the CITY OF TUSTIN, as a result of development and /or
rehabilitation occurring within the boundaries of the District.
DATED June 5, 2014 ALBERT A WEBB ASSOCIATES,
for and on behalf of the Director of Public Works of the City
By:
SPECIAL TAX CONSULTANT FOR
THE CITY OF TUSTIN
ORANGE COUNTY
STATE OF CALIFORNIA
City of Tustin Community Facilities District Report Page 3
Community Facilities District No. 2014 -1 (Tustin Legacy /Standard Pacific)
Cost Estimate
1. The cost estimate for public and school district facilities, including incidental expenses and
financing costs, is generally as follows: Said project, including incidental expenses is estimated to be
$29,000,000 based upon current dollars (2013- 2014). The initial estimated annual cost for
providing services to be funded by the proceeds of Special Tax B is $459,859, and is anticipated to
increase annually by an amount equal to two percent (2 %) of the amount in effect for the previous
Fiscal Year.
2. For further particulars, reference is made to Table 1 below and incorporated herein by reference
3. Pursuant to Section 53340 of the Act, the proceeds of any Special Tax levied and collected by CFD
No. 2014 -1 may be used only to pay for the cost of providing public facilities, services, and
incidental expenses. As defined by the Act, incidental expenses include, but are not limited to, the
annual costs associated with determination of the amount of special taxes, collection of special
taxes, payment of special taxes, or costs otherwise incurred in order to carry out the authorized
purposes of the community facilities district. The incidental expenses associated with the annual
administration of CFD No. 2014 -1 are estimated to be $30,000 in the initial Fiscal Year. However, it
is anticipated that the incidental expenses will vary due to inflation and other factors that may not
be foreseen today, and the actual incidental expenses may exceed these amounts accordingly.
Table 1
Public and School District Cost Estimate
Services Annual Cost Estimate
Item Total("
City of Tustin Services $459,859
Total $459,859
Estimated for Fiscal year 2014 -15 and shall increase by 2% each year thereafter.
DATED June S, 2014 ALBERT A WEBB ASSOCIATES,
for and on behalf of the Director of Public Works of the City
By: C
SPECIAL TAX CONSULTANT FOR
THE CITY OF TUSTIN
ORANGE COUNTY
STATE OF CALIFORNIA
City of Tustin Community Facilities District Report Page 4
Community Facilities District No. 2014 -1 (Tustin Legacy /Standard Pacific)
City of Tustin Facilities /Improvements
$16,298,518
TUSD School Facilities Capacity
$8,715,876
Incidentals and Financing Costs
$3,985,606
Total
$29,000,000
Services Annual Cost Estimate
Item Total("
City of Tustin Services $459,859
Total $459,859
Estimated for Fiscal year 2014 -15 and shall increase by 2% each year thereafter.
DATED June S, 2014 ALBERT A WEBB ASSOCIATES,
for and on behalf of the Director of Public Works of the City
By: C
SPECIAL TAX CONSULTANT FOR
THE CITY OF TUSTIN
ORANGE COUNTY
STATE OF CALIFORNIA
City of Tustin Community Facilities District Report Page 4
Community Facilities District No. 2014 -1 (Tustin Legacy /Standard Pacific)
Proposed Development
i
The development consists of single family residential homes located in the City of Tustin on
approximately 78.34 gross acres. The property was formerly within the boundaries of Marine Corps Air
Station - Tustin, prior to its closure. This development will consist of 375 single family detached units
and is located north of Jamboree Road, southeast of Park Avenue and southwest of Moffett Drive. The
proposed district boundaries include the following Assessor Parcel Number(s):
430 - 381- 19thru 430 - 381 -25
430 - 381- 47thru 430- 381 -52
430- 381- 54thru 430- 381 -57
430 - 381- 59thru 430 - 381 -61
430 - 381 -70
430 - 381 -72 and 430 - 381 -73
The Boundary Map for CFD No. 2014 -1 is attached hereto as Appendix B.
City of Tustin Community Facilities District Report Page 5
Community Facilities District No. 2014 -1 (Tustin Legacy /Standard Pacific)
Rate and Method of Apportionment
1. The Special Tax allows each property owner within the proposed District to estimate the annual
amount that would be required for payment. The rate and method of apportionment of the
Special Tax is attached hereto as Appendix A (the "Rate and Method "). The Special Tax will be
collected in the same manner and at the same time as ad valorem property taxes and subject to
the same penalties and provisions; however, the Special Tax may be collected at a different time or
in a different manner if necessary for CFD No. 2014 -1 to meet its financial obligations and may
covenant to foreclose on delinquent parcels as permitted by the Act.
2. All of the property located within CFD No. 2014 -1, unless exempted by law or by the Special Tax
proposed for CFD No. 2014 -1, shall be taxed for the purpose of providing necessary facilities and
services to benefit the District. The Boundary Map for CFD No. 2014 -1 is attached hereto as
Appendix B. Pursuant to Section 53325.3 of the Act, the tax imposed "is a Special Tax and not a
special assessment, and there is no requirement that the tax be apportioned on the basis of benefit
to any property." The Special Tax may be based on benefit received by property, the cost of
making facilities or authorized services available or other reasonable basis as determined by the
City Council, although the Special Tax may not be apportioned on an ad valorem basis pursuant to
Article XIIIA of the California Constitution.
A property owner of Property within the District may choose to prepay in whole or in part the
Special Tax A. The available method for so doing is described in Section H of the Rate and Method
( "Prepayment of Special Tax A "). Special Tax B may not be prepaid.
For each year that any Bonds are outstanding the Special Tax shall be levied on all Parcels subject
to the Special Tax. If any delinquent Special Taxes remain uncollected prior to or after all Bonds are
retired, the Special Tax may be levied to the extent necessary to reimburse the CFD for uncollected
Special Taxes associated with the levy of such Special Taxes, but not later than forty years
commencing with Fiscal Year 2014 -2015.
3. For particulars as to the rate and method of apportionment, see the attached and incorporated
Appendix A.
It is my opinion that the special tax rate and method of apportionment, as above set forth, is fair and
reasonable.
This Report has been prepared and consolidated by the Special Tax Consultant, Albert A. Webb
Associates, for and on behalf of the Director of Public Works of the City, and is herewith submitted to
the City Council pursuant to the applicable provisions of the Mello -Roos Community Facilities Act of
1982.
DATED June 5, 2014 ALBERT A WEBB ASSOCIATES,
for and on behalf of the Director of Public Works of the City
By.
SPECIAL TAX CONSULTANT FOR
THE CITY OF TUSTIN
ORANGE COUNTY
STATE OF CALIFORNIA
City of Tustin Community Facilities District Report Page 6
Community Facilities District No. 2014 -1 (Tustin Legacy /Standard Pacific)
Rate and Method of Apportionment
A 1, B E R T A.
A S S 0 C I A '1' 6 5
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
THE CITY OF TUSTIN
COMMUNITY FACILITIES DISTRICT NO. 2014- 1(TUSTIN LEGACY /STANDARD PACIFIC)
A Special Tax (all capitalized terms used herein are defined in Section A., "Definitions ", below) shall be
levied on all Assessor's Parcels of Taxable Property in the City of Tustin Community Facilities District No.
2014 -1 (Tustin Legacy /Standard Pacific) ( "CFD No. 2014 -1 ") and collected each Fiscal Year commencing
in Fiscal Year 2014 -2015, in an amount determined through the application of this Rate and Method of
Apportionment as described below. All of the real property in CFD No. 2014 -1, 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 capitalized terms hereinafter set forth have the following meanings:
"Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel
Map, or if the land area is not shown on the Assessor's Parcel Map, the land area as shown on
the applicable Final Subdivision, parcel map, condominium plan, or other recorded County
parcel map. The square footage of an Assessor's Parcel is equal to the Acreage of such parcel
multiplied by 43,560.
"Act" means the Mello -Roos Communities Facilities Act of 1982, as amended, being Chapter 2.5,
Division 2 of Title 5 of the California Government Code.
"Administrative Expenses" means the following actual or reasonably estimated costs directly
related to the administration of CFD No. 2014 -1: the costs of computing the Special Taxes and
preparing the annual Special Tax collection schedules (whether by the City or designee thereof
or both); the costs of collecting the Special Taxes (whether by the City, the County or otherwise);
the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its
legal counsel) in the discharge of the duties required of it under the Indenture; the costs of the
City, CFD No. 2014 -1 or any designee thereof of complying with any arbitrage rebate
requirements applicable to the Bonds; the costs of the City, CFD No. 2014 -1 or any designee
thereof of complying with City, CFD No. 2014 -1 or obligated persons disclosure requirements of
applicable federal and state securities laws and the Act; the costs associated with preparing
Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes;
the costs of the City, CFD No. 2014 -1 or any designee thereof related to an appeal of the Special
Tax; the costs associated with the release of funds from any escrow account established for CFD
No. 2014 -1; and the City's annual administration fees and third party expenses in anyway
related to CFD No. 2014 -1. Administrative Expenses shall also include amounts estimated or
advanced by the City or CFD No. 2014 -1 for any other administrative purposes of CFD No. 2014-
1, including attorney's fees and other costs related to commencing and pursuing to completion
any foreclosure as a result of delinquent Special Taxes.
"Annual Special Tax A" means the Special Tax A actually levied in any Fiscal Year on any
Assessors Parcel.
Rate and Method of Apportionment of Special Tax
City of Tustin CFD No. 2014 -1 (Tustin Legacy /Standard Pacific)
"Annual Special Tax B" means the Special Tax B actually levied in any Fiscal Year on any
Assessor's Parcel.
"Approved Property" means all Assessor's Parcels of Taxable Property: (i) that are included in a
Final Subdivision that was recorded prior to the January 1" preceding the Fiscal Year in which
the Special Tax A is being levied, and (ii) that have not been issued a building permit on or
before May 1" preceding the Fiscal Year in which the Special Tax A is being levied.
"Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned
Assessor Parcel Number.
"Assessor's Parcel Map" means an official map of the Assessor of the County designating
parcels by Assessor's Parcel Number.
"Assessor's Parcel Number" means that number assigned to an Assessor's Parcel by the County
for purposes of identification.
"Assigned Annual Special Tax A" means the Special Tax A for each Land Use Category of
Developed Property, as determined in accordance with Section CA.a., below.
"Authorized Facilities" means those facilities authorized to be financed by CFD No. 2014 -1
pursuant to the Act and the proceedings to form CFD No. 2014 -1.
"Authorized Services" means those services authorized to be financed by CFD No. 2014 -1
pursuant to the Act and the proceedings to form CFD No. 2014 -1.
"Backup Special Tax A" means the Special Tax amount set forth in Section C.1.b., below.
"Bonds" means any bonds or other debt (as defined in Section 53317 (d) of the Act), whether in
one or more series, issued by the City for CFD No. 2014 -1 under the Act.
"Building Permit" means the first legal document issued by the City giving official permission for
new construction. For purposes of this definition, "Building Permit" may or may not include any
subsequent building permits issued or changed after the first issuance, as determined by the
CFD Administrator.
"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 A Requirement for Facilities and the Special Tax B Requirement for
Services, and otherwise providing for the levy and collection of the Special Taxes.
"CFD No. 2014 -1" means City of Tustin Community Facilities District No. 2014 -1 (Tustin
Legacy /Standard Pacific).
"City" means the City of Tustin, California.
F1
Rate and Method of Apportionment of Special Tax
City of Tustin CFD No. 2014 -1 (Tustin Legacy /Standard Pacific)
"Consumer Price Index" means, for each Fiscal Year, the Consumer Price Index published by the
U.S. Bureau of Labor Statistics for "All Urban Consumers: in the Los Angeles — Anaheim —
Riverside Area, measured as of the month of December in the calendar year which ends in the
previous Fiscal Year. In the event this index ceases to be published, the Consumer Price Index
shall be another index as determined by the CFD Administrator that is reasonably comparable to
the Consumer Price Index for the City of Los Angeles.
Council" means the City Council of the City, acting as the legislative body of CFD No. 2014 -1.
"County" means the County of Orange, California.
"Developed Property" means for each Fiscal Year, all Taxable Property, exclusive of Taxable
Public Property and Taxable Property Owner Association Property, that are included in a Final
Subdivision that was recorded prior to January Vt preceding the Fiscal Year in which the Special
Tax is being levied and for which a Building Permit for new construction has been issued on or
prior to May 1" preceding the Fiscal Year in which the Special Tax is being levied.
"Dwelling Unit" or "DU" means a residential unit that is used or intended to be used as a
domicile by one or more persons, as determined by the CFD Administrator.
"Exempt Property" means all Assessor's Parcels designated as being exempt from Special Tax A
and Special Tax B as provided for in Section E.
"Final Subdivision" means a subdivision of property by recordation of a final subdivision map,
parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government
Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil
Code 1352 that creates individual lots for which Building Permits may be issued without further
subdivision.
"Fiscal Year" means the period commencing July 1 of any year and ending the following June 30.
"Indenture" means the indenture, fiscal agent agreement, resolution or other instrument,
pursuant to which Bonds are issued, as modified, amended and /or supplemented from time to
time.
"Land Use Class" means any of the classes listed in Table 1 below.
"Maximum Special Tax" means the Maximum Special Tax A and /or Maximum Special Tax B, as
applicable.
"Maximum Special Tax A" means the Maximum Special Tax A determined in accordance with
Section C that can be levied in any Fiscal Year on any Assessor's Parcel within CFD No. 2014 -1.
"Maximum Special Tax B" means the Maximum Special Tax B determined in accordance with
Section C that can be levied in any Fiscal Year on any Assessor's Parcel within CFD No. 2014 -1.
"Multi- family Residential Property" means all Parcels of Developed Property that consist of a
building or buildings comprised of attached Dwelling Units available for rental by the general
Rate and Method of Apportionment of Special Tax
City of Tustin CFD No. 2014 -1 (Tustin Legacy /Standard Pacific)
public, not for sale to an end user, and under common management, as determined by the CFD
Administrator.
"Non- Residential Property" means all Assessor's Parcels of Developed Property for which a
Building Permit permitting the construction of one or more non - residential units or facilities has
been issued.
"Outstanding Bonds" means all Bonds which are outstanding under the provisions of an
Indenture.
"Partial Prepayment Amount" means the amount required to prepay a portion of the Special
Tax A obligation for an Assessor's Parcel, as described in Section H.
"Prepayment Amount" means the amount required to prepay the Special Tax A obligation in full
for an Assessor's Parcel, as described in Section H.
"Property Owner Association Property" means, for each Fiscal Year, any property within the
boundaries of CFD No. 2014 -1 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, that the ratio of the actual Special Tax A levy
to the Assigned Special Tax A is equal for all Assessor's Parcels of Developed Property and that
the ratio of the actual Special Tax B levy to the Maximum Special Tax B is equal for all Assessor's
Parcels of Developed Property. For Approved Property, that the ratio of the actual Special Tax A
levy to the Maximum Special Tax A is equal for all Assessor's Parcels of Approved Property and
that the ratio of the actual Special Tax B levy to the Maximum Special Tax B is equal for all
Assessor's Parcels of Approved Property. For Undeveloped Property, "Proportionately" means
that the ratio of the actual Special Tax A levy per Acre to the Maximum Special Tax A per Acre is
equal for all Assessor's Parcels of Undeveloped Property. The term "Proportionately" may
similarly be applied to other categories of Taxable Property as listed in Section C below.
"Public Property" means property within the boundaries of CFD No. 2014 -1 owned by,
irrevocably offered or dedicated to, or over, through or under which an easement for purposes
of public right -of -way has been granted, to the federal government, the State, the County, the
City, or any local government or other public agency, provided that any property leased by a
public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall
be taxed and classified according to its use.
"Residential Floor Area" means all of the square footage of living area within the perimeter of a
residential structure, not including any carport, walkway, garage, overhang, patio, enclosed
patio, or similar area. The determination of Residential Floor Area for an Assessor's Parcel shall
be made by reference to the Building Permit(s) issued for such Assessor's Parcel.
"Residential Property" means all Assessor's Parcels of Developed Property for which a Building
Permit permitting the construction thereon of one or more residential dwelling units has been.
"Single Family Residential Property" means all Assessor's Parcels of Residential Property for
which building permits have been issued for residential units, other than Multi- family Property. .
4
Rate and Method of Apportionment of Special Tax
City of Tustin CFD No. 2014 -1 (Tustin Legacy /Standard Pacific)
"Special Tax" means the Special Tax A and /or Special Tax B, as applicable.
"Special Tax A" means the special taxes to be levied in each Fiscal Year on each Assessor's
Parcel of Taxable Property within CFD No. 2014 -1 to fund the Special Tax A Requirement for
Facilities.
"Special Tax B" means the special tax authorized to be levied in each Fiscal Year on each
Assessor's Parcel of Taxable Property within CFD No. 2014 -1 to fund the Special Tax B
Requirement for Services.
"Special Tax A Requirement for Facilities" means the amount required in any Fiscal Year for CFD
No. 2014 -1 to: (i) pay the debt service on all Outstanding Bonds due in the Calendar Year
commencing in such Fiscal Year, (ii) pay periodic costs on the Bonds, including but not limited to,
credit enhancement and rebate payments with respect to the Bonds due in the calendar year
commencing in such Fiscal Year; (iii) pay actual and estimated Administrative Expenses related
to the levy and collection of Special Tax A, the administration of the Bonds and the obligations
of the City and CFD No. 2014 -1 under the Indenture; (iv) pay any amounts required to establish
or replenish any reserve funds for all Outstanding Bonds, to the extent not included in a
computation of the Special Tax A Requirement for Facilities in a previous Fiscal Year; (v) pay for
reasonable anticipated Special Tax A delinquencies for the current Fiscal Year based on the
delinquency rate for the Special Tax A levy in the previous Fiscal Year; (vi) pay directly for
acquisition or construction of Authorized Facilities; less (vii) a credit for funds available to reduce
the annual Special Tax A levy, as determined by the CFD Administrator in accordance with any
Indenture.
"Special Tax B Requirement for Services" means that amount required in any Fiscal Year for
CFD No. 2014 -1 to (i) pay directly for costs of the Authorized Services due in the calendar year
commencing in such Fiscal Year; (ii) pay actual and estimated Administrative Expenses related to
the levy and collection of the Special Tax B and the provision of the Authorized Services; less (iii)
a credit for funds available to reduce the annual Special Tax B levy, as determined by the CFD
Administrator.
"State" means the State of California.
"Taxable Property" means all Assessor's Parcels within the boundaries of CFD No. 2014 -1, which
are not exempt from the Special Tax pursuant to law or Section E below.
"Taxable Property Owner Association Property" means, for each Fiscal Year, all Assessor's
Parcels of Property Owner Association Property that are not exempt from the Special Tax
pursuant to Section E below.
"Taxable Public Property" means, for each Fiscal Year, all Assessor's Parcels of Public Property
that are not exempt from the Special Tax pursuant to Section E below.
"Trustee" means the trustee or fiscal agent under the Indenture.
5
Rate and Method of Apportionment of Special Tax
City of Tustin CFD No. 2014 -1 (Tustin Legacy /Standard Pacific)
"Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as
Developed Property, Taxable Public Property or Taxable Property Owner Association Property.
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, all Taxable Property shall be classified as Developed Property, Approved Property,
Taxable Public Property, Taxable Property Owner Association Property, or Undeveloped Property, and
shall be subject to Special Taxes in accordance with this Rate and Method of Apportionment determined
pursuant to Sections C, D, and E below.
Parcels of Developed Property shall further be classified as Residential Property or Non - Residential
Property. Parcels of Residential Property shall further be classified as Single Family Property or Multi-
family Residential Property. Parcels of Single Family Property shall be further categorized into Land Use
Classes based on the Residential Floor Area for each such Parcel.
C. MAXIMUM SPECIAL TAX
1. Developed Property
The Maximum Special Tax A for each Parcel of Single Family Residential Property shall be the greater
of: (i) the applicable Assigned Special Tax described in Table 1 or (ii) the amount derived by
application of the Backup Special Tax A.
The Maximum Special Tax B for each Parcel of Single Family Residential Property shall be the
applicable Maximum Special Tax B described in Table 1.
The Maximum Special Tax A for each Parcel of Non - Residential Property, or Multi- family Residential
Property shall be the Assigned Special Tax A described in Table 1.
The Maximum Special Tax B for each Parcel of Non - Residential Property or Multi- family Residential
Property shall be the Maximum Special Tax B described in Table 1.
a. Assigned Special Tax
The Assigned Special Tax for each Parcel of Developed Property is shown in Table 1 below:
N
Rate and Method of Apportionment of Special Tax
City of Tustin CFD No. 2014-1 (Tustin Legacy /Standard Pacific)
TABLE 1
Maximum Special Tax for Developed Property in
Community Facilities District No. 2014 -1
(Tustin Legacy /Standard Pacific)
Fiscal Year 2014 -2015
Land
Use
Class
Description
DU /Acre
Residential Floor
Area
Assigned
Special
Tax A
Maximum
Special
Tax B
1
Single Family Residential Property
DU
> 3,530 s.f.
$4,997
$1,522
2
Single Family Residential Property
DU
3,210 -3,529 s.f.
$4,675
$1,425
3
Single Family Residential Property
DU
2,890 -3,209 s.f.
$4,308
$1,314
4
Single Family Residential Property
DU
2,570 -2,889 s.f.
$3,822
$1,164
5
Single Family Residential Property
DU
2,250 -2,569 s.f.
$3,346
$1,020
6
Single Family Residential Property
DU
< =2,250 s.f.
$2,819
$860
7
Multi- family Residential Property
Acre
N/A
$47,492
$14,475
8
Non - Residential Property
Acre
N/A
$47,492
$14,475
b. Backup Special Tax A
When a Final Subdivision is-recorded, the Backup Special Tax A for a Parcel classified or to be
classified as Single Family Residential Property within such Final Subdivision shall be determined
by multiplying the Undeveloped Property Maximum Special Tax A rate per acre, as defined in
Section C3 below, by the total Acreage of Taxable Property within such Final Subdivision,
excluding the Acreage .associated with Multi - Family Residential Property, Non - Residential
Property, Public Property and /or Property Owner's Association Property that is not Exempt
Property pursuant to Section E. and dividing such amount by the number of Parcels within such
Final Subdivision classified as either (i) Single Family Residential Property or (ii) Approved
Property for which a Building Permit is expected to be issued for Single Family Residential
Property (i.e., the number of residential lots).
Notwithstanding the forgoing, if Parcels classified or to be classified as Single Family Residential
Property are subsequently changed or modified by recordation of a lot line adjustment or
similar instrument, then the Backup Special Tax shall be recalculated for the area that has been
changed or modified using the methodology described in the preceding paragraph.
The Backup Special Tax A shall not apply to Multi - Family Residential Property, Non - Residential
Property, Public Property, Property Owner's Association Property, or Undeveloped Property.
c. Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2015, the Maximum Special Tax A, calculated pursuant to
Section CA above shall be increased by an amount equal to two percent (2%) of the amount in
effect for the previous Fiscal Year. On each July 1, commencing on July 1, 2015, the Maximum
Special Tax B shall be increased by an amount equal to two percent (2 %) of the amount in effect
for the previous Fiscal Year.
7
Rate and Method of Apportionment of Special Tax
City of Tustin CFD No. 2014 -1 (Tustin Legacy /Standard Pacific)
d. Multiple Land Use Classes
In some instances an Assessor's Parcel of Developed Property may contain more than one Land
Use Class. The Maximum Special Tax levied on an Assessor's Parcel shall be the sum of the
Maximum Special Taxes for all Land Use Classes located on that Assessor's Parcel.
2. , Approved Property
a. Single Family Residential Property
The Fiscal Year 2014 -2015 Maximum Special Tax A for each Parcel of Approved Property
expected to be classified as Single Family Residential Property shall be the Backup Special Tax
computed pursuant to Section C.1.b above.
The Fiscal Year 2014 -2015 Maximum Special Tax B for each Parcel of Approved Property
expected to be classified as Single Family Residential Property shall be $14,475 per acre.
b. Multi- family Residential Property and Non - Residential Property
The Fiscal Year 2014 -2015 Maximum Special Tax A for each Parcel of Approved Property
expected to be classified as Multi - Family Residential Property and Non - Residential Property shall
be $47,492 per acre.
The Fiscal Year 2014 -2015 Maximum Special Tax B for each Parcel of Approved Property
expected to be classified as Multi - Family Residential Property and Non - Residential Property shall
be $14,475 per acre.
c. Increase in the Maximum Special Tax A and Maximum Special Tax B
On each July 1, commencing on July 1, 2015, the Maximum Special Tax A for Approved Property
shall be increased by an amount equal to two percent (2%) of the amount in effect far the
previous Fiscal Year. On each July 1, commencing on July 1, 2015, the Maximum Special Tax B
for Approved Property shall be increased by an amount equal to two percent (2%) of the
amount in effect for the previous Fiscal Year.
3. Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association
Property
a. Maximum Special Tax A
The Fiscal Year 2014 -2015 Maximum Special Tax A for Undeveloped Property, Taxable Public
Property, and Taxable Property Owner Association Property shall be $47,492 per Acre.
b. Maximum Special Tax B
The Fiscal Year 2014 -2015 Maximum Special Tax B for Undeveloped Property, Taxable Public
Property, and Taxable Property Owner Association Property shall be $14,475 per Acre:
8
Rate and Method of Apportionment of Special Tax
City of Tustin CFD No. 2014 -1 (Tustin Legacy /Standard Pacific)
c. Increase in the Maximum Special Tax A and Maximum Special Tax B
On each July 1, commencing on July 1, 2015, the Maximum Special Tax A for Undeveloped
Property, Taxable Public Property, and Taxable Property Owner Association Property, shall be
increased by an amount equal to two percent (2 %) of the amount in effect for the previous
Fiscal Year. On each July 1, commencing on July 1, 2015, the Maximum Special Tax B for
Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association
Property, shall be increased by an amount equal to two percent (2 %) of the amount in effect for
the previous Fiscal Year.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
1. Special Tax A
Commencing Fiscal Year 2014 -2015 and for each subsequent Fiscal Year, the Council or its
designee shall determine the Special Tax A Requirement for Facilities and shall levy the Special
Tax A until the total Special Tax A levy equals the Special Tax A Requirement for Facilities. The
Special Tax A shall be levied each Fiscal Year as follows:
First: The Annual Special Tax A shall be levied Proportionately on each Assessor's Parcel of
Developed Property at up to 100% of the applicable Assigned Special Tax A;
Second: If additional moneys are needed to satisfy the Special Tax A Requirement for Facilities
after the first step has been completed, the Annual Special Tax A shall be levied Proportionately
on each Assessor's Parcel of Approved Property at up to 100% of the Maximum Special Tax A for
Approved Property;
Third: If additional moneys are needed to satisfy the Special Tax A Requirement for Facilities
after the first step has been completed, the Annual Special Tax A shall be levied Proportionately
on each Assessor's Parcel of Undeveloped Property up to 100% of the Maximum Special Tax A
for Undeveloped Property;
Fourth: If additional moneys are needed to satisfy the Special Tax A Requirement for Facilities
after the first three steps have been completed, the Special Tax A to be levied on each Parcel of
Developed Property for which the Maximum Special Tax A is derived by the application of the
Backup Special Tax A shall be increased in equal percentages from the Assigned Special Tax A up
to the Maximum Special Tax A for such Parcel;
Fifth: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after
the first four steps have been completed, then the Annual Special Tax A shall be levied
Proportionately on each Assessors Parcel of Taxable Property Owner Association Property at
up to the Maximum Special Tax A for Taxable Property Owner Association Property;
Sixth: If additional moneys are needed to satisfy the Special Tax Requirement for Facilities after
the first five steps have been completed, then Special Tax A shall be levied Proportionately on
each Assessor's Parcel of Taxable Public Property at up to the Maximum Special Tax A for
Taxable Public Property.
9
Rate and Method of Apportionment of Special Tax -
City of Tustin CFD No. 2014 -1 (Tustin Legacy /Standard Pacific)
2. Special Tax B
Commencing with Fiscal Year 2014 -2015 and for each following Fiscal Year, the Council or its
designee shall levy the Special Tax B until the total Special Tax B levy equals the Special Tax B
Requirement for Services. The Special Tax B shall be levied each Fiscal Year as follows:
First: The Special Tax B shall be levied Proportionately on each Assessor's Parcel of Developed
Property at up to 100% of the applicable Maximum Special Tax B;
Second: If additional monies are needed to satisfy the Special Tax B Requirement for Services
after the first step has been completed, the Special Tax B shall be levied Proportionately on each
Assessor's Parcel of Approved Property at up to 100% of the Maximum Special Tax B for
Approved Property.
Third: If additional monies are needed to satisfy the Special Tax B Requirement for Services after
the first two steps have been completed, the Special Tax B shall be levied Proportionately on
each Assessor's Parcel of Undeveloped Property at up to 100% of the Maximum Special Tax B for
Undeveloped Property.
E. EXEMPTIONS
1. Special Tax A
No Special Tax A shall be levied on up to 46.57 Acres of Public Property and /or, Property Owner
Association Property in the chronological order in which property becomes Public Property and
Property Owner Association Property. However, should an Assessor's Parcel no longer be
classified as Public Property or Property Owner Association Property, its tax - exempt status will
be revoked as determined by the CFD Administrator.
Property Owner Association Property or Public Property that is not exempt from the Special Tax
A under this section shall be subject to the levy of the Special Tax A and shall be taxed
Proportionately as part of the fifth and sixth steps in Section D.1 as determined by the CFD
Administrator.
2. Special Tax B
No Special Tax B shall be levied on Public Property or Property Owner Association Property.
F. APPEALS AND INTERPRETATIONS
Any landowner or resident who feels that the amount of the Special Tax levied on such
landowner's or resident's Assessor's Parcel is in error may submit a written appeal to CFD No.
2014 -1. The CFD Administrator shall review the appeal and if the CFD Administrator concurs
and the Special Tax is to be modified in favor of the Property owner or resident of the Assessor's
Parcel, no cash refund shall be made for prior years' Special Tax levies, but an adjustment shall
be made to the next Special Tax levy(ies).
10
Rate and Method of Apportionment of Special Tax
City of Tustin CFD No. 2014 -1 (Tustin Legacy /Standard Pacific)
The Council may interpret this Rate and Method of Apportionment of Special Tax for purposes
of clarifying any ambiguity and make determinations relative to the amount of Administrative
Expenses.
G. MANNER OF COLLECTION
Special Tax A and Special Tax B will be collected in the same manner as ordinary ad valorem
property taxes or in such other manner as the Council shall determine, including direct billing of
the affected property owners.
H. PREPAYMENT OF SPECIAL TAX A
The following additional definitions apply to this Section H:
"Build -out" means, for CFD No. 2014 -1, that all expected Building Permits for the
Assessors Parcels in CFD No. 2014 -1 have been issued.
"CFD Public Facilities" means either $26,000,000 in 2014 dollars, which shall increase by
the Construction Inflation Index on July 1, 2015, and on each July 1 thereafter, or such lower
number as (i) shall be determined by the CFD Administrator as sufficient to provide the
Authorized Facilities, or (ii) shall be determined by the City Council concurrently with a
covenant that it will not issue any more Bonds (except refunding bonds) to be supported by the
Special Tax A levy under this Rate and Method of Apportionment as described in Section D.1
above.
"Construction Inflation Index" means the annual percentage change in the Engineering
News Record Building Cost Index for the City of Los Angeles, measured as of the calendar year
which ends in the previous Fiscal Year. In the event this index ceases to be published, the
Construction Inflation Index shall be another index as determined by the CFD Administrator
that is reasonably comparable to the Engineering News Record Building Cost Index for the City
of Los Angeles.
"Future Facilities Costs" means the CFD Public Facilities minus (i) public facility costs
previously paid from the Improvement Fund, (ii) moneys currently on deposit in the
Improvement Fund, and (iii) moneys currently on deposit in an escrow fund that are expected
to be available to finance the cost of CFD Public Facilities.
"Improvement Fund" means an account specifically identified in the Indenture to hold funds
which are currently available for expenditure to acquire or construct Authorized Facilities.
"Previously Issued Bonds" means, for any Fiscal Year, all Outstanding Bonds that are deemed
to be outstanding under the Indenture after the first interest and /or principal payment date
following the current Fiscal Year.
11
Rate and Method of Apportionment of Special Tax
City of Tustin CFD No. 2014 -1 (Tustin Legacy /Standard Pacific)
1. Prepayment in Full
Only an Assessor's Parcel of Developed Property, or Taxable Property Owner
Association Property, Taxable Public Property or Approved Property for which a
building permit has been issued, may prepay Special Tax A. The obligation of the
Assessor's Parcel to pay the Special Tax A may be permanently satisfied as described
herein, provided that a prepayment may be made with respect to a particular
Assessor's Parcel only if there are no delinquent Special Taxes with respect to such
Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel
intending to prepay the Special Tax A obligation shall provide the CFD Administrator
with written notice of intent to prepay. Within 30 days of receipt of such written
notice, the CFD Administrator shall notify such owner of the prepayment amount for
such Assessor's Parcel. The CFD Administrator may charge the owner prepaying
Special Tax A a reasonable fee for providing this service. Prepayment must be
made not less than 45 days prior to the next occurring date that notice of
redemption of CFD No. 2014 -1 Bonds from the proceeds of such prepayment may
be given by the Trustee pursuant to the Indenture.
The Special Tax B may not be prepaid.
The Special Tax A Prepayment Amount (defined below) shall be calculated as summarized
below (capitalized terms as defined below):
Bond F
plus
plus
plus
plus
less
less
Total: equals
edemption Amount
Redemption Premium
Future Facilities Amount
Defeasance Amount
Administrative Fees and Expenses
Reserve Fund Credit
Capitalized Interest Credit
Special Tax A Prepayment Amount
As of the proposed date of prepayment, the Special Tax A Prepayment Amount shall be
calculated as follows:
Paragraph No.:
1. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel.
2. For Assessor's Parcels of Developed Property, Taxable Property Owner Association
Property, or Taxable Public Property for which a Building Permit has been issued,
compute the Maximum Special Tax A for the current Fiscal Year applicable for the
Assessor's Parcel to be prepaid. For Assessor's Parcels of Approved Property for which a
building permit has been issued, compute the Maximum Special Tax A for the current
Fiscal Year applicable for that Assessor's Parcel as though it was already designated as
Developed Property, based upon the building permit which has already been issued for
that Assessor's Parcel.
12
Rate and Method of Apportionment of Special Tax
City of Tustin CFD No. 2014 -1 (Tustin Legacy /Standard Pacific)
3. Divide the Maximum Special Tax A computed pursuant to paragraph 2 by the total
estimated Maximum Special Tax A for the entire CFD No. 2014 -1 based on the
Developed Property Special Tax A which could be levied in the current Fiscal Year on all
expected development through Build -out of CFD No. 2014 -1, excluding any Assessor's
Parcels which have been prepaid.
4. Multiply the quotient computed pursuant to paragraph 3 by the Previously Issued Bonds
to compute the amount of Previously Issued Bonds to be retired and prepaid (the
"Bond Redemption Amount ").
5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the
applicable redemption premium (e.g., the redemption price- 100 %), if any, on the
Previously Issued Bonds to be redeemed (the "Redemption Premium ").
6. Compute the current Future Facilities Costs.
7. Multiply the quotient computed pursuant to paragraph 3 by the amount determined
pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be prepaid
(the "Future Facilities Amount ").
8. Compute the amount needed to pay interest on the Bond Redemption Amount from the
first bond interest and /or principal payment date following the current Fiscal Year until the
earliest redemption date for the Previously Issued Bonds.
9. Determine any Special Tax A levied on the Assessor's Parcel in the current Fiscal Year
which has not yet been paid.
10. Compute the minimum amount the CFD Administrator reasonably expects to derive from
the reinvestment of the Special Tax A Prepayment Amount less the Future Facilities
Amount and the Administrative Fees and Expenses (defined below) from the date of
prepayment until the redemption date for the Previously Issued Bonds to be redeemed
with the prepayment.
11. Add the amounts computed pursuant to paragraphs 8 and 9 and subtract the amount
computed pursuant to paragraph 10 (the "DefeasonceAmount ").
12. The administrative fees and expenses of CFD No. 2014 -1 are as calculated by the
CFD Administrator and include the costs of computation of the prepayment, the costs
to invest the prepayment proceeds, the costs of redeeming CFD No. 2014 -1 Bonds, and
the costs of recording any notices to evidence the prepayment and the redemption
(the "Administrative Fees and Expenses ").
13. If reserve funds for the Previously Issued Bonds, if any, are at or above 100% of the
reserve requirement (as defined in the Indenture) on the prepayment date, a reserve
fund credit shall be calculated as a reduction in the applicable reserve fund for the
13
Rate and Method of Apportionment of Special Tax
City of Tustin CFD No. 2014 -1 (Tustin Legacy /Standard Pacific)
Previously Issued Bonds to be redeemed pursuant to the prepayment (the "Reserve
Fund Credit "). No Reserve Fund Credit shall be granted if reserve funds are below
100% of the reserve requirement.
14. If any capitalized interest for the Previously Issued Bonds will not have been expended
as of the date immediately following the first interest and /or principal payment
following the current Fiscal Year, a capitalized interest credit shall be calculated by
multiplying the quotient computed pursuant to paragraph 3 by the expected balance
in the capitalized interest fund or account under the Indenture after such first
interest and /or principal payment ( the "CopitalizedlnterestCredit ")
15. The Special Tax A prepayment is equal to the sum of the amounts computed
pursuant to paragraphs 4, 5, 7, 11 and 12, less the amounts computed pursuant to
paragraphs 13 and 14 (the "Special Tax A Prepayment Amount").
From the Special Tax for Facilities Prepayment Amount, the amounts computed pursuant
to paragraphs 4, 5, 11, 13 and 14 shall be deposited into the appropriate fund as
established under the Indenture and be used to retire Previously Issued Bonds or make debt
service payments. The amount computed pursuant to paragraph 7 shall be deposited into
the Improvement Fund. The amount computed pursuant to paragraph 12 shall be retained by
the CFD Administrator.
The Special Tax for Facilities Prepayment Amount may be insufficient to redeem a full $5,000
increment of Previously Issued Bonds. In such cases, the increment above $5,000 or integral
multiple thereof will be retained in the appropriate fund established under the Indenture to
be used with the next prepayment of Previously Issued Bonds or to make debt service
payments.
As a result of the payment of the current Fiscal Year's Special Tax A levy as determined under
paragraph 9 (above), the CFD Administrator shall remove the current Fiscal Year's Special Tax A
levy for such Assessor's Parcel from the County tax rolls. With respect to any Assessor's Parcel that
is prepaid, the City Council shall cause a suitable notice to be recorded in compliance with the Act,
to indicate the prepayment of the Special Tax A and the release of the Special Tax A lien on
such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay the Special Tax A shall
cease.
Notwithstanding the foregoing, no Special Tax A prepayment shall be allowed unless, at the time of such
proposed prepayment, the amount of Maximum Special Tax A that may be levied on Taxable Property
within CFD No. 2014 -1 (after excluding Public Property and Property Owner Association Property as
set forth in Section E) both prior to and after the proposed prepayment is at least 1.1 times the
maximum annual debt service on all Previously Issued Bonds, plus the estimated annual Administration
Expenses.
14
Rate and Method of Apportionment of Special Tax
City of Tustin CFD No. 2014 -1 (Tustin Legacy /Standard Pacific)
2. Prepayment in Part
The Special Tax A on an Assessor's Parcel of Developed Property or an Assessor's Parcel of
Taxable Property Owner Association Property, Taxable Public Property, or Undeveloped
Property for which a building permit has been issued may be partially prepaid. The amount
of the prepayment shall be calculated as in Section 1.1; except that a partial prepayment
shall be calculated according to the following formula:
PP = ((PE -A) X F) + A
These terms have the following meaning:
PP = the partial prepayment
PE = the Special Tax A Prepayment Amount calculated according to Section 1.1
F = the percentage, expressed as a decimal, by which the owner of the Assessor's
Parcel is partially prepaying the Special Tax A.
A = Administrative Fees and Expenses
The owner of any Assessor's Parcel who desires such prepayment shall notify the CFD
Administrator of such owner's intent to partially prepay the Special Tax A and the percentage
by which the Special Tax A shall be prepaid. The CFD Administrator shall provide the
owner with a statement of the amount required for the partial prepayment of the Special
Tax A for an Assessor's Parcel within 30 days of the request and may charge a reasonable fee
for providing this service. With respect to any Assessor's Parcel that is partially prepaid,
the Council shall (i) distribute the funds remitted to it according to Section 1.1, and (ii)
indicate in the records of CFD No. 2014 -1 that there has been a partial prepayment of the
Special Tax A and that a portion of the Special Tax A with respect to such Assessor's
Parcel, equal to the outstanding percentage (1.00 - F) of the remaining Maximum Special Tax
A, shall continue to be levied on such Assessor's Parcel pursuant to Section D.
Notwithstanding the foregoing, no Special Tax A prepayment shall be allowed unless, at the
time of such proposed prepayment, the amount of Maximum Special Tax A that may be
levied on Taxable Property within CFD No. 2014 -1 (after excluding Public Property and
Property Owner Association Property as set forth in Section E) both prior to and after
the proposed prepayment is at least 1.1 times the maximum annual debt service on all
Previously Issued Bonds, plus the cost of annual CFD administration.
I. TERM OF SPECIAL TAX
The Special Tax A shall be levied for a period not to exceed forty years commencing with
Fiscal Year 2014 -2015. The Special Tax B shall be levied as long as necessary to meet the
Special Tax B Requirement for Services.
15
Rate and Method of Apportionment of Special Tax
City of Tustin CFD No. 2014 -1 (Tustin Legacy /Standard Pacific)
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RESOLUTION NO. 1440
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUSTIN ESTABLISHING THE CITY OF TUSTIN
COMMUNITY FACILITIES DISTRICT NO. 20141 ( TUSTIN
LEGACY /STANDARD PACIFIC), AUTHORIZING THE LEVY
OF SPECIAL TAXES, WAIVING CERTAIN ELECTION
PROCEDURES AND CALLING AN ELECTION THEREIN
WHEREAS, the City Council (the "City Council ") of the City of Tustin, California (the
"City ") has heretofore adopted Resolution No. 14 -34 (the "Resolution of Intention ") stating its
intention to establish the City of Tustin Community Facilities District No. 2014 -1 (Tustin
Legacy /Standard Pacific) (the "Community Facilities District') pursuant to the Mello -Roos
Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of
Title 5 of the Government Code of the State of California (the "Act'); and
WHEREAS, a copy of the Resolution of Intention setting forth a description of the
proposed boundaries of the Community Facilities District, and the public facilities, services and
the incidental expenses to be financed by the Community Facilities District (the "Facilities,"
"Services" and "Incidental Expenses," respectively) is on file with the City Clerk; and, except to
the extent amended by this resolution, the Resolution of Intention is incorporated herein by
reference; and
WHEREAS, a notice of a public hearing on matters related to the Community Facilities
District to be held on June 17, 2014 was published in accordance with the Act; and
WHEREAS, on June 17, 2014, the City Council opened the public hearing (the
"Hearing ") as required by law; and
WHEREAS, at the Hearing there was filed with this City Council a report containing a
description of the Facilities and Services necessary to meet the needs of the Community
Facilities District and an estimate of the cost of such Facilities and Services as required by
Section 53321.5 of the Act (the "Community Facilities District Report'); and
WHEREAS, at the Hearing all persons desiring to be heard on all matters pertaining to
the proposed formation of the Community Facilities District and the levy of the special taxes and
the issuance of bonded indebtedness were heard and a full and fair hearing was held; and
WHEREAS, at the Hearing, evidence was presented to the City Council on the matters
before it, and the proposed formation of the Community Facilities District and the levy of special
taxes was not precluded by a majority protest of the type described in Section 53324 of the Act,
and this City Council at the conclusion of the Hearing is fully advised as to all matters relating to
the formation of the Community Facilities District, the levy of the special taxes and the issuance
of bonded indebtedness; and
WHEREAS, at the Hearing, certain changes to the form of the rate and method of
apportionment of special tax attached as Exhibit C to the Resolution of Intention were
described; and
WHEREAS, the City Council has determined that there have been fewer than twelve
registered voters residing in the proposed boundaries of the Community Facilities District for the
period of 90 days prior to the Hearing and that the qualified electors in the Community Facilities
District are the landowners within the Community Facilities District; and
WHEREAS, on the basis of all of the foregoing, the City Council has determined at this
time to proceed with the establishment of the Community Facilities District and with the calling
of an election within the boundaries of the Community Facilities District to authorize (i) the levy
of special taxes within the Community Facilities District pursuant to the rate and method of
apportionment of the special tax, (ii) the issuance of bonds to finance the Facilities and
Incidental Expenses, and (iii) the establishment of an appropriations limit for the Community
Facilities District; and
WHEREAS, as the sole landowner within the Community Facilities District, the City
desires to waive certain election procedures relating to such election;
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE
CITY COUNCIL OF THE CITY OF TUSTIN AS FOLLOWS:
Section 1. Each of the above recitals is true and correct.
Section 2. The Community Facilities District to be designated "City of Tustin
Community Facilities District No. 2014 -1 (Tustin Legacy /Standard Pacific)" is hereby established
pursuant to the Act. The City Council hereby finds and determines that all prior proceedings
taken with respect to the establishment of the Community Facilities District were valid and in
conformity with the requirements of law, including the Act. This finding is made in accordance
with the provisions of Section 53325.1(b) of the Act.
Section 3. The boundaries of the Community Facilities District are established as
shown on the map designated "Proposed Boundary Map Community Facilities District No. 2014-
1 (Tustin Legacy /Standard Pacific) City of Tustin, County of Orange, State of California ", which
map is on file in the office of the City Clerk and was recorded pursuant to Sections 3111 and
3113 of the Streets and Highways Code in the County of Orange Book of Maps of Assessment
and Community Facilities Districts in the County Recorder's Office in Book No. 99 at page 43
M/M as Document No. 2014000180375 on May 9, 2014.
Section 4. The types of Facilities, Services and Incidental Expenses authorized to be
provided for the Community Facilities District are those set forth in the Resolution of Intention.
The estimated cost of the Facilities, Services and Incidental Expenses to be financed is set forth
in the Community Facilities District Report, which estimates may change as the Facilities are
designed and bid for construction and acquisition, and as the costs of the Services are more
fully determined.
The City of Tustin is authorized by the Act to contribute revenue to, or to construct or
acquire the Facilities or provide the Services, all in accordance with the Act. The City Council
finds that the proposed Facilities and Services are necessary to meet the increased demand
that will be placed upon public infrastructure, the Tustin Unified School District and the City as a
result of new development within the Community Facilities District.
Section 5. The City Council hereby adopts the rate and method of apportionment of
special tax attached hereto as Exhibit A (the "Rate and Method ") as the applicable rate and
2
method of apportionment for the Community Facilities District. Except where funds are
otherwise available, it is the intention of the City Council, subject to the approval of the qualified
electors within the. Community Facilities District, to levy the proposed special taxes in the
Community Facilities District at the rates set forth in the Rate and Method hereto on all
non - exempt property within the Community Facilities District sufficient to pay (i) the costs of the
Facilities and the principal and interest and other periodic costs on the bonds proposed to be
issued by the Community Facilities District to finance the Facilities, including the establishment
and replenishment of reserve funds, any remarketing, credit enhancement and liquidity facility
fees (including such fees for instruments which serve as the basis of a reserve fund in lieu of
cash) and other expenses of the type permitted by Section 53345.3 of the Act; (ii) the annual
cost of the Services and (iii) the Incidental Expenses. The Community Facilities District expects
to incur, and in certain cases has already incurred, Incidental Expenses in connection with the
creation of the Community Facilities District, providing the Services, the issuance of bonds, the
levying and collecting of the special tax, the completion and inspection of the Facilities and the
annual administration of the bonds and the Community Facilities District. The Rate and Method
is described in detail in Exhibit A hereto and incorporated herein by this reference, and the City
Council hereby finds that said Exhibit A contains sufficient detail to allow each future landowner
within the Community Facilities District to estimate the maximum amount that may be levied
against each parcel. The special tax shall be levied on each assessor's parcel pursuant to the
Rate and Method, but the special tax shall not be levied after Fiscal Year 2053 -54. The special
tax is apportioned to each parcel on the foregoing bases pursuant to Section 53325.3 of the Act
and such special tax is not a tax on or a tax based upon the ownership of real property.
The City's Director of Finance will be responsible for preparing annually, or authorizing a
designee to prepare, a current roll of special tax levy obligations by assessor's parcel number
and will be responsible for estimating future special tax levies pursuant to Section 53340.2 of
the Act. The City's Director of Finance is located at 300 Centennial Way, Tustin, California
92780, telephone: (714) 573 -3000.
Section 6. In the event that a portion of the property within the Community Facilities
District shall become for any reason exempt, wholly or partially, from the levy of the special tax
specified in the Rate and Method, the City Council shall, on behalf of the Community Facilities
District, increase the levy to the extent necessary and permitted by law and these proceedings
upon the remaining property within the Community Facilities District which is not delinquent or
exempt in order to yield the required debt service payments on any outstanding bonds of the
Community Facilities District or to prevent the Community Facilities District from defaulting on
any other of its obligations or liabilities; provided, however, that under no circumstances shall
the special tax in the Community Facilities District be increased in any fiscal year (a) as a
consequence of delinquency or default by the owner of any other parcel or parcels within the
Community Facilities District by more than ten percent (10 %) above the amount that would have
been levied in that fiscal year had there never been any such delinquencies or defaults or (b) in
excess of the maximum special tax rates in the Rate and Method. The annual amount of the
special tax levy will be set in accordance with the Rate and Method.
Section 7. Upon recordation of a notice of special tax lien for the Community
Facilities District pursuant to Section 3114.5 of the Streets and Highways Code, a continuing
lien to secure each levy of the special tax shall attach to all non - exempt 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 special tax by the Community Facilities District ceases.
3
Section 8. It is hereby further determined that there is no ad valorem property tax
currently being levied on property within the proposed Community Facilities District for the
exclusive purpose of paying the principal of or interest on bonds or other indebtedness incurred
to finance the construction of capital facilities which provide the same services to the territory of
the Community Facilities District as are proposed to be provided by the Facilities or Services to
be financed by the Community Facilities District.
Section 9. Written protests against the establishment of the Community Facilities
District have not been filed by one -half or more of the registered voters within the boundaries of
the Community Facilities District or by the property owners of one -half or more of the area of
land within the boundaries of the Community Facilities District. The City Council hereby finds
that the proposed special tax has not been precluded by a majority protest pursuant to
Section 53324 of the Act.
Section 10. An election is hereby called for the Community Facilities District on the
propositions of levying the special tax on the property within the Community Facilities District
and establishing an appropriations limit for the Community Facilities District pursuant to
Section 53325.7 of the Act and shall be consolidated with the election on the proposition of
incurring bonded indebtedness for the Community Facilities District, pursuant to Section 53351
of the Act (the "Election "). The propositions to be placed on the ballot for the Community
Facilities District are attached hereto as Exhibit B.
Section 11. To the maximum extent possible under the Act and the Election Code, the
City hereby waives certain election procedures relating to the Election, including, but not limited
to, the procedures set forth in Government Code sections 53326 and 53327 and Election Code
sections 9160 to 9167, inclusive, 9195 and 9401. The Mayor of the City is hereby designated to
vote on its behalf.
Section 12. The date of the Election within the Community Facilities District shall be
June 17, 2014, or such later date as is consented to by the City Clerk and the City, as the sole
landowner within the Community Facilities District. The City Clerk shall conduct the Election.
Except as otherwise provided by the Act, the Election shall be conducted by personally
delivered ballot and, except as otherwise provided by the Act, the Election shall be conducted in
accordance with the provisions of law regulating elections of the City insofar as such provisions
are determined by the City Clerk to be applicable.
It is hereby found that there are not more than twelve registered voters within the
territory of the Community Facilities District for each of the 90 days prior to the close of the
Hearing, and, pursuant to Section 53326 of the Act, each landowner who is the owner of record
on the date hereof, or the authorized representative thereof, shall have one vote for each acre
or portion thereof that he, she or it owns within the Community Facilities District. The voters
shall be the City as the sole landowner of record within the Community Facilities District as of
June 17, 2014.
Section 13. The preparation of the Community Facilities District Report is hereby
ratified. The Community Facilities District Report, as submitted, is hereby approved and made a
part of the record of the public hearing regarding the formation of the Community Facilities
District, and is ordered to be kept on file with the transcript of these proceedings and open for
public inspection.
2
Section 14. Pursuant to the Local Agency Special Tax and Bond Accountability Act,
Section 50075.1 et seq. and Sections 53410 et seq. of the California Government Code: (a) the
ballot measures referred to in Section 10 above contain a statement indicating the specific
purposes of the special tax, the proceeds of the special tax will be applied only to the purposes
specified in the ballot measure, the City's Director of Finance is directed to create an account
into which proceeds of the special tax levies will be deposited and the City's Director of Finance
is directed to provide an annual report to the City Council as required by Section 50075.3 of the
California Government Code; and (b) the ballot measures contain a statement indicating the
specific purposes of the bonds, the proceeds of the bonds will be applied only to the purposes
specified in the ballot measure, the City's Director of Finance is directed to create an account
into which the proceeds of the bonds will be deposited, and the City's Director of Finance is
directed to provide an annual report as required by Section 53411 of the California Government
Code.
Section 15. This Resolution shall be effective upon its adoption.
PASSED AND ADOPTED by the City Council at a regular meeting held on the 17th day
of June, 2014.
CITY COUNCIL OF THE CITY OF TUSTIN
ATTEST:
Jeffrey C. Parker
City Clerk of the City of Tustin
STATE OF CALIFORNIA )
COUNTY OF ORANGE )ss.
CITY OF TUSTIN )
Elwyn A. Murray,
Mayor of the City of Tustin
I, JEFFREY C. PARKER, City Clerk of the City of Tustin, do hereby certify that the
foregoing Resolution was duly adopted by the City Council of the City of Tustin at a regular
meeting held on the 17th day of June, 2014, by the following votes:
AYES: COUNCIL MEMBERS
NOES: COUNCIL MEMBERS
ABSENT: COUNCIL MEMBERS
JEFFREY C. PARKER, CITY CLERK
5
Attachments: Exhibits A and B
0
EXHIBIT A
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
THE CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2014 -1
( TUSTIN LEGACY /STANDARD PACIFIC)
. A Special Tax (all capitalized terms used herein are defined in Section A., "Definitions ",
below) shall be levied on all Assessor's Parcels of Taxable Property in the City of Tustin
Community Facilities District No. 2014 -1 (Tustin Legacy /Standard Pacific) ( "CFD No. 2014 -1 ")
and collected each Fiscal Year commencing in Fiscal Year 2014 -2015, in an amount
determined through the application of this Rate and Method of Apportionment as described
below. All of the real property in CFD No. 2014 -1, 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 capitalized terms hereinafter set forth have the following meanings
"Acre or Acreage" means the land area of an Assessor's Parcel as shown on an
Assessor's Parcel Map, or if the land area is not shown on the Assessor's Parcel Map,
the land area as shown on the applicable Final Subdivision, parcel map, condominium
plan, or other recorded County parcel map. The square footage of an Assessor's Parcel
is equal to the Acreage of such parcel multiplied by 43,560.
"Act" means the Mello -Roos Communities Facilities Act of 1982, as amended, being
Chapter 2.5, Division 2 of Title 5 of the California Government Code.
"Administrative Expenses" means the following actual or reasonably estimated costs
directly related to the administration of CFD No. 2014 -1: the costs of computing the
Special Taxes and preparing the annual Special Tax collection schedules (whether by
the City or designee thereof or both); the costs of collecting the Special Taxes (whether
by the City, the County or otherwise); the costs of remitting the Special Taxes to the
Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the
duties required of it under the Indenture; the costs of the City, CFD No. 2014 -1 or any
designee thereof of complying with any arbitrage rebate requirements applicable to the
Bonds; the costs of the City, CFD No. 2014 -1 or any designee thereof of complying with
City, CFD No. 2014 -1 or obligated persons disclosure requirements of applicable federal
and state securities laws and the Act; the costs associated with preparing Special Tax
disclosure statements.and responding to public inquiries regarding the Special Taxes;
the costs of the City, CFD No. 2014 -1 or any designee thereof related to an appeal of
the Special Tax; the costs associated with the release of funds from any escrow account
established for CFD No. 2014 -1; and the City's annual administration fees and third
party expenses in anyway related to CFD No. 20.14 -1. Administrative Expenses shall
also include amounts estimated or advanced by the City or CFD No. 2014 -1 for any
other administrative purposes of CFD No. 2014 -1, including attorney's fees and other
costs related to commencing and pursuing to completion any foreclosure as a result of
delinquent Special Taxes.
"Annual Special Tax A" means the Special Tax A actually levied in any Fiscal Year on
any Assessor's Parcel.
A -1
DOCS OC/ 1662873v5/200350 -0011
"Annual Special Tax B" means the Special Tax B actually levied in any Fiscal Year on
any Assessor's Parcel.
"Approved Property" means all Assessor's Parcels of Taxable Property: (i) that are
included in a Final Subdivision that was recorded prior to the January 1 st preceding the
Fiscal Year in which the Special Tax A is being levied, and (ii) that have not been issued
a building permit on or before May 1st preceding the Fiscal Year in which the Special
Tax A is being levied.
"Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an
assigned Assessor Parcel Number.
"Assessor's Parcel Map" means an official map of the Assessor of the County
designating parcels by Assessor's Parcel Number.
"Assessor's Parcel Number" means that number assigned to an Assessor's Parcel by
the County for purposes of identification.
"Assigned Annual Special Tax A" means the Special Tax A for each Land Use
Category of Developed Property, as determined in accordance with Section C.1.a.,
below.
"Authorized Facilities" means those facilities authorized to be financed by CFD
No. 2014 -1 pursuant to the Act and the proceedings to form CFD No. 2014 -1.
"Authorized Services" means those services authorized to be financed by CFD
No. 2014 -1 pursuant to the Act and the proceedings to form CFD No. 2014 -1.
"Backup Special Tax A" means the Special Tax amount set forth in Section C.1.b.,
below. .
"Bonds" means any bonds or other debt (as defined in Section 53317 (d) of the Act),
whether in one or more series, issued by the City for CFD No. 2014 -1 under the Act.
"Building Permit" means the first legal document issued by the City giving official
permission for new construction. For purposes of this definition, "Building Permit" may
or may not include any subsequent building permits issued or changed after the first
issuance, as determined by the CFD Administrator.
"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 A Requirement for Facilities and the Special Tax B
Requirement for Services, and otherwise providing for the levy and collection of the
Special Taxes.
"CFD No. 2014 -1" means City of Tustin Community Facilities District No. 2014 -1 (Tustin
Legacy /Standard Pacific).
"City" means the City of Tustin, California
A -2
"Consumer Price Index" means, for each Fiscal Year, the Consumer Price Index
published by the U.S. Bureau of Labor Statistics for "All Urban Consumers: in the Los
Angeles — Anaheim — Riverside Area, measured as of the month of December in the
calendar year which ends in the previous Fiscal Year." In the event this index ceases to
be published, the Consumer Price Index shall be another index as determined by the
CFD Administrator that is reasonably comparable to the Consumer Price Index for the
City of Los Angeles.
"Council" means the City Council of the City, acting as the legislative body of CFD
No. 2014 -1.
"County" means the County of Orange, California.
"Developed Property" means for each Fiscal Year, all Taxable Property, exclusive of
Taxable Public Property and Taxable Property Owner Association Property, that are
included in a Final Subdivision that was recorded prior to January 1st preceding the
Fiscal Year in which the Special Tax is being levied and for which a Building Permit for
new construction has been issued on or prior to May 1st preceding the Fiscal Year in
which the Special Tax is being levied.
"Dwelling Unit" or "DU" means a residential unit that is used or intended to be used as
a domicile by one or more persons, as determined by the CFD Administrator.
"Exempt Property" means all Assessor's Parcels designated as being exempt from
Special Tax A and Special Tax B as provided for in Section E.
"Final Subdivision" means a subdivision of property by recordation of a final
subdivision map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act
(California Government Code Section 66410 et seq.) or recordation of a condominium
plan pursuant to California Civil Code 1352 that creates individual lots for which Building
Permits may be issued without further subdivision.
"Fiscal Year" means the period commencing July 1 of any year and ending the
following June 30.
"Indenture" means the indenture, fiscal agent agreement, resolution or other
instrument, pursuant to which Bonds are issued, as modified, amended and /or
supplemented from time to time.
"Land Use Class" means any of the classes listed in Table 1 below.
"Maximum Special Tax" means the Maximum Special Tax A and /or Maximum Special
Tax B, as applicable.
"Maximum Special Tax A" means the Maximum Special Tax A determined in
accordance with Section C that can be levied in any Fiscal Year on any Assessor's
Parcel within CFD No. 2014 -1.
"Maximum Special Tax B" means the Maximum Special Tax B determined in
accordance with Section C that can be levied in any Fiscal Year on any Assessor's
Parcel within CFD No. 2014 -1.
A -3
"Multi- family Residential Property" means all Parcels of Developed Property that
consist of a building or buildings comprised of attached Dwelling Units available for
rental by the general public, not for sale to an end user, and under common
management, as determined by the CFD Administrator.
"Non - Residential Property" means all Assessor's Parcels of Developed Property for
which a Building Permit permitting the construction of one or more non - residential units
or facilities has been issued.
"Outstanding Bonds" means all Bonds which are outstanding under the provisions of
an Indenture.
"Partial Prepayment Amount" means the amount required to prepay a portion of the
Special Tax A obligation for an Assessor's Parcel, as described in Section H.
"Prepayment Amount" means the amount required to prepay the Special Tax A
obligation in full for an Assessor's Parcel, as described in Section H.
"Property Owner Association Property" means, for each Fiscal Year, any property
within the boundaries of CFD No. 2014 -1 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, that the ratio of the actual Special
Tax A levy to the Assigned Special Tax A is equal for all Assessor's Parcels of
Developed Property and that the ratio of the actual Special Tax B levy to the Maximum
Special Tax B is. equal for all Assessor's Parcels of Developed Property. For Approved
Property, that the ratio of the actual Special Tax A levy to the Maximum Special Tax A is
equal for all Assessor's Parcels of Approved Property and that the ratio of the actual
Special Tax B levy to the Maximum Special Tax B is equal for all Assessor's Parcels of
Approved Property. For Undeveloped Property, "Proportionately" means that the ratio of
the actual Special Tax A levy per Acre to the Maximum Special Tax A per Acre is equal
for all Assessor's Parcels of Undeveloped Property. The term "Proportionately" may
similarly be applied to other categories of Taxable Property as listed in Section C below.
"Public Property" means property within the boundaries of CFD No. 2014 -1 owned by,
irrevocably offered or dedicated to, or over, through or under which an easement for
purposes of public right -of -way has been granted, to the federal government, the State,
the County, the City, or any local government or other public agency, provided that any
property leased by a public agency to a private entity and subject to taxation under
Section 53340.1 of the Act shall be taxed and classified according to its use.
"Residential Floor Area" means all of the square footage of living area within the
perimeter of a residential structure, not including any carport, walkway, garage,
overhang, patio, enclosed patio, or similar area. The determination of Residential Floor
Area for an Assessor's Parcel shall be made by reference to the Building Permit(s)
issued for such Assessor's Parcel.
"Residential Property" means all Assessor's Parcels of Developed Property for which
a Building Permit permitting the construction thereon of one or more residential dwelling
units has been.
FM'
"Single Family Residential Property" means all Assessor's Parcels of Residential
Property for which building permits have been issued for .residential units, other than
Multi- family Property.
"Special Tax" means the Special Tax A and /or Special Tax B, as applicable.
"Special Tax A" means the special taxes to be levied in each Fiscal Year on each
Assessor's Parcel of Taxable Property within CFD No. 2014 -1 to fund the Special Tax A.
Requirement for Facilities.
"Special Tax B" means the special tax authorized to be levied in each Fiscal Year on
each Assessor's Parcel of Taxable Property within CFD No. 2014 -1 to fund the Special
Tax B Requirement for Services.
"Special Tax A Requirement for Facilities" means the amount required in any Fiscal
Year for CFD No. 2014 -1 to: (i) pay the debt service on all Outstanding Bonds due in
the Calendar Year commencing in such Fiscal Year, (ii) pay periodic costs on the Bonds,
including but not limited to, credit enhancement and rebate payments with respect to the
Bonds due in the calendar year commencing in such Fiscal Year; (iii) pay actual and
estimated Administrative Expenses related to the levy and collection of Special Tax A,
the administration of the Bonds and the obligations of the City and CFD No. 2014 -1
under the Indenture; (iv) pay any amounts required to establish or replenish any reserve
funds for all Outstanding Bonds, to the extent not included in a computation of the
Special Tax A Requirement for Facilities in a previous Fiscal Year; (v) pay for
reasonable anticipated Special Tax A delinquencies for the current Fiscal Year based on
the delinquency rate for the Special Tax A levy in the previous Fiscal Year; (vi) pay
directly for acquisition or construction of Authorized Facilities; less (vii) a credit for funds
available to reduce the annual Special Tax A levy, as determined by the CFD
Administrator in accordance with any Indenture.
"Special Tax B Requirement for Services" means that amount required in any Fiscal
Year for CFD No. 2014 -1 to (i) pay directly for costs of the Authorized Services due in
the calendar year commencing in such Fiscal Year; (ii) pay actual and estimated
Administrative Expenses related to the levy and collection of the Special Tax B and the
provision of the Authorized Services; less (iii) a credit for funds available to reduce the
annual Special Tax B levy, as determined by the CFD Administrator.
"State" means the State of California
"Taxable Property" means all Assessor's Parcels within the boundaries of CFD
No. 2014 -1, which are not exempt from the Special Tax pursuant to law or Section E
below.
"Taxable Property Owner Association Property" means, for each Fiscal Year, all
Assessor's Parcels of Property Owner Association Property that are not exempt from the
Special Tax pursuant to Section E below.
"Taxable Public Property" means, for each Fiscal Year, all Assessor's Parcels of
Public Property that are not exempt from the Special Tax pursuant to Section E below.
"Trustee" means the trustee or fiscal agent under the Indenture
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"Undeveloped Property" means, for each Fiscal Year,
classified as Developed Property, Taxable Public Property
Association Property.
B. ASSIGNMENT TO LAND USE CATEGORIES
all Taxable Property not
or Taxable Property Owner
Each Fiscal Year, all Taxable Property shall be classified as Developed Property,
Approved Property, Taxable Public Property, Taxable Property Owner Association
Property, or Undeveloped Property, and shall be subject to Special Taxes in accordance
with this Rate and Method of Apportionment determined pursuant to Sections C, D, and
E below.
Parcels of Developed Property shall further be classified as Residential Property or Non -
Residential Property. Parcels of Residential Property shall further be classified as Single
Family Property or Multi- family Residential Property. Parcels of Single Family Property
shall be further categorized into Land Use Classes based on the Residential Floor Area
for each such Parcel
C. MAXIMUM SPECIAL TAX
Developed Property
The Maximum Special Tax A for each Parcel of Single Family Residential
Property shall be the greater, of: (i) the applicable Assigned Special Tax
described in Table 1 or (ii) the amount derived by application of the Backup
Special Tax A.
The Maximum Special Tax B for each Parcel of Single Family Residential
Property shall be the applicable Maximum Special Tax B described in Table 1.
The Maximum Special Tax A for each Parcel of Non - Residential Property, or
Multi- family Residential Property shall be the Assigned Special Tax A described
in Table 1.
The Maximum Special Tax B for each Parcel of Non - Residential Property or
Multi- family Residential Property shall be the Maximum Special Tax B described
in Table 1.
a. Assigned Special Tax
The Assigned Special Tax for each Parcel of Developed Property is
shown in Table 1 below:
TABLE 1
Maximum Special Tax for Developed Property in
Community Facilities District No. 2014 -1
(Tustin Legacy /Standard Pacific)
Fiscal Year 2014 -2015
Land
Residential
Assigned
Maximum
Use
Description
DU /Acre
Floor Area
Special
S ecial
W
Class
Tax A
Tax B
1
Single Family Residential
DU
> 3,530 s.f.
$4,997
$1,522
Property
2
Single Family Residential
DU
3,210 -3,529
$4,675
$1,425
Property
s.f.
3
Single Family Residential
DU
2,890 -3,209
$4,308
$1,314
Property
s.f.
4
Single Family Residential
DU
2,570 -2,889
$3,822
$1,164
Property
s.f.
5
Single Family Residential
DU
2,250 -2,569
$3,346
$1,020
Property
s.f.
6
Single Family Residential
DU
< =2,250 s.f.
$2,819
$860
Property
7
Multi- family Residential
Acre
N/A
$47,492
$14,475
Property
8
Non - Residential Property
Acre
N/A
$47,492
$14,475
b. Backup Special Tax A
When a Final Subdivision is recorded, the Backup Special Tax A for a
Parcel classified or to be classified as Single Family Residential Property
within such Final Subdivision shall be determined by multiplying the
Undeveloped Property Maximum Special Tax A rate per acre, as defined
in Section C3 below, by the total Acreage of Taxable Property within such
Final Subdivision, excluding the Acreage associated with Multi - Family
Residential Property, Non - Residential Property, Public Property and /or
Property Owner's Association Property that is not Exempt Property
pursuant to Section E. and dividing such amount by the number of
Parcels within such Final Subdivision classified as either (i) Single Family
Residential Property or (ii) Approved Property for which a Building Permit
is expected to be issued for Single Family Residential Property (i.e., the
number of residential lots).
Notwithstanding the forgoing, if Parcels classified or to be classified as
Single Family Residential Property are subsequently changed or modified
by recordation of a lot line adjustment or similar instrument, then the
Backup Special Tax shall be recalculated for the area that has been
changed or modified using the methodology described in the preceding
paragraph.
The Backup Special Tax A shall not apply to Multi - Family Residential
Property, Non - Residential Property, Public Property, Property Owner's
Association Property, or Undeveloped Property.
C. Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2015, the Maximum Special Tax
A, calculated pursuant to. Section CA above shall be increased by an
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amount equal to two percent (2 %) of the amount in effect for the previous
Fiscal Year. On each July 1, commencing on July 1, 2015, the Maximum
Special Tax B shall be increased by an amount equal to two percent (2 %)
of the amount in effect for the previous Fiscal Year.
Multiple Land Use Classes
In some instances an Assessor's Parcel of Developed Property may
contain more than one Land Use Class. The Maximum Special Tax levied
on an Assessor's Parcel shall be the sum of the Maximum Special Taxes
for all Land Use Classes located on that Assessor's Parcel.
2. Approved Property
a. Single Family Residential Property
The Fiscal Year 2014 -2015 Maximum Special Tax A for each Parcel of
Approved Property expected to be classified as Single Family Residential
Property shall be the Backup Special Tax computed pursuant to Section
C.1.b above.
The Fiscal Year 2014 -2015 Maximum Special Tax B for each Parcel of
Approved Property expected to be classified as Single Family Residential
Property shall be $14,475 per acre.
b. Multi - family Residential Property and Non - Residential Propert y
The Fiscal Year 2014 -2015 Maximum Special Tax A for each Parcel of
Approved Property expected to be classified as Multi - Family Residential
Property and Non - Residential Property shall be $47,492 per acre.
The Fiscal Year 2014 -2015 Maximum Special Tax B for each Parcel of
Approved Property expected to be classified as Multi - Family Residential
Property and Non - Residential Property shall be $14,475 per acre.
C. Increase in the Maximum Special Tax A and Maximum Special Tax B
On each July 1, commencing on July 1, 2015, the Maximum Special Tax
A for Approved Property shall be increased by an amount equal to two
percent (2 %) of the amount in effect for the previous Fiscal Year. On
each July 1, commencing on July 1, 2015, the Maximum Special Tax B
for Approved Property shall be increased by an amount equal to two
percent (2 %) of the amount in effect for the previous Fiscal Year.
OF
3. Undeveloped Property, Taxable Public Property, and Taxable Property
Owner Association Property
Maximum Special Tax A
The Fiscal Year 2014 -2015 Maximum Special Tax A for Undeveloped
Property, Taxable Public Property, and Taxable Property Owner
Association Property shall be $47,492 per Acre.
b. Maximum Special Tax B
The Fiscal Year 2014 -2015 Maximum Special Tax B for Undeveloped
Property, Taxable Public Property, and Taxable Property Owner
Association Property shall be $14,475 per Acre.
C. Increase in the Maximum Special Tax A and Maximum Special Tax B
On each July 1, commencing on July 1, 2015, the Maximum Special Tax
A for Undeveloped Property, Taxable Public Property, and Taxable
Property Owner Association Property, shall be increased by an amount
equal to two percent (2 %) of the amount in effect for the previous Fiscal
Year. On each July 1, commencing on July 1, 2015, the Maximum
Special Tax B for Undeveloped Property, Taxable Public Property, and
Taxable Property Owner Association Property, shall be increased by an
amount equal to two percent (2 %) of the amount in effect for the previous
Fiscal Year.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Special Tax A
Commencing Fiscal Year 2014 -2015 and for each subsequent Fiscal Year, the
Council or its designee shall determine the Special .Tax A Requirement for
Facilities and shall levy the Special Tax A until the total Special Tax A levy
equals the Special Tax A Requirement for Facilities. The Special Tax A shall be
levied each Fiscal Year as follows:
First: The Annual Special Tax A shall be levied Proportionately on each
Assessor's Parcel of Developed Property at up to 100% of the applicable
Assigned Special Tax A;
Second: If additional moneys are needed to satisfy the Special Tax A
Requirement for Facilities after the first step has been completed, the Annual
Special Tax A shall be levied Proportionately on each Assessor's Parcel of
Approved Property at up to 100% of the Maximum Special Tax A for Approved
Property;
Third: If additional moneys are needed to satisfy the Special Tax A Requirement
for Facilities after the first step has been completed, the Annual Special Tax A
shall be levied Proportionately on each Assessor's Parcel of Undeveloped
Property up to 100% of the Maximum Special Tax A for Undeveloped Property;
00
E.
Fourth: If additional moneys are needed to satisfy the Special Tax A
Requirement for Facilities after the first three steps have been completed, the
Special Tax A to be levied on each Parcel of Developed Property for which the
Maximum Special Tax A is derived by the application of the Backup Special Tax
A shall be increased in equal percentages from the Assigned Special Tax A up to
the Maximum Special Tax A for such Parcel;
Fifth: If additional monies are needed to satisfy the Special Tax Requirement for
Facilities after the first four steps have been completed, then the Annual Special
Tax A shall be levied Proportionately on each Assessor's Parcel of Taxable
Property Owner Association Property at up to the Maximum Special Tax A for
Taxable Property Owner Association Property;
Sixth : If additional moneys are needed to satisfy the Special Tax Requirement
for Facilities after the first five steps have been completed, then Special Tax A
shall be levied Proportionately on each Assessor's Parcel of Taxable Public
Property at up to the Maximum Special Tax A for Taxable Public Property.
2. Special Tax B
Commencing with Fiscal Year 2014 -2015 and for each following Fiscal Year, the
Council or its designee shall levy the Special Tax B until the total Special Tax B
levy equals the Special Tax B Requirement for Services. The Special Tax B shall
be levied each Fiscal Year as follows:
First: The Special Tax B shall be levied Proportionately on each Assessor's
Parcel of Developed Property at up to 100% of the applicable Maximum Special
Tax B;
Second: If additional monies are needed to satisfy the Special Tax B
Requirement for Services after the first step has been completed, the Special
Tax B shall be levied Proportionately on each Assessor's Parcel of Approved
Property at up to 100% of the Maximum Special Tax B for Approved Property.
Third: If additional monies are needed to satisfy the Special Tax B Requirement
for Services after the first two steps have been completed, the Special Tax B
shall be levied Proportionately on each Assessor's Parcel of Undeveloped
Property at up to 100% of the Maximum Special Tax B for Undeveloped
Property.
Special Tax A
No Special Tax A shall be levied on up to 46.57 Acres of Public Property and /or,
Property Owner Association Property in the chronological order in which property
becomes Public Property and Property Owner Association Property. However,
should an Assessor's Parcel no longer be classified as Public Property or
Property Owner Association Property, its tax - exempt status will be revoked as
determined by the CFD Administrator.
A -10
Property Owner Association Property or Public Property that is not exempt from
the Special Tax A under this section shall be subject to the levy of the Special
Tax A and shall be taxed Proportionately as part of the fifth and sixth steps in
Section DA as determined by the CFD Administrator.
2. Special Tax B
No Special Tax B shall be levied on Public Property or Property Owner
Association Property.
F. APPEALS AND INTERPRETATIONS
Any landowner or resident who feels that the amount of the Special Tax levied on such
landowner's or resident's Assessor's Parcel is in error may submit a written appeal to
CFD No. 2014-1. The CFD Administrator shall review the appeal and if the CFD
Administrator concurs and the Special Tax is to be modified in favor of the Property
owner or resident of the Assessor's Parcel, no cash refund shall be made for prior years'
Special Tax levies, but an adjustment shall be made to the next Special Tax levy(ies). .
The Council may interpret this Rate and Method of Apportionment of Special Tax for
purposes of clarifying any ambiguity and make determinations relative to the amount of
Administrative Expenses.
G. MANNER OF COLLECTION
Special Tax A and Special Tax B will be collected in the same manner as ordinary ad
valorem property taxes or in such other manner as the Council shall determine, including
direct billing of the affected property owners.
H. PREPAYMENT OF SPECIAL TAX A
The following additional definitions apply to this Section H
"Build -out" means, for CFD No. 2014-1, that all expected Building Permits for the
Assessors Parcels in CFD No. 2014 -1 have been issued.
"CFD Public Facilities" means either $26,000,000 in 2014 dollars, which shall
increase by the Construction Inflation Index on July 1, 2015, and on each July 1
thereafter, or such lower number as (i) shall be determined by the CFD Administrator
as sufficient to provide the Authorized Facilities, or (ii) shall be determined by the City
Council concurrently with a covenant that it will not issue any more Bonds (except
refunding bonds) to be supported by the Special Tax A levy under this Rate and Method
of Apportionment as described in Section DA above.
"Construction Inflation Index" means the annual percentage change in the
Engineering News Record Building Cost Index for the City of Los Angeles, measured
as of the calendar year which ends in the previous Fiscal Year. In the event this index
ceases to be. published, the Construction Inflation Index shall be another index as
determined by the CFD Administrator that is reasonably comparable to the Engineering
News Record Buifding Cost Index for the City of Los Angeles.
A -11
"Future Facilities Costs" means the CFD Public Facilities minus (i) public facility
costs previously paid from the Improvement Fund, (ii) moneys currently on deposit in
the Improvement Fund, and (iii) moneys currently on deposit in an escrow fund that are
expected to be available to finance the cost of CFD Public Facilities.
"Improvement Fund" means an account specifically identified in the Indenture to
hold funds which are currently available for expenditure to acquire or construct
Authorized Facilities.
"Previously Issued Bonds" means, for any Fiscal Year, all Outstanding Bonds that
are deemed to be outstanding under the Indenture after the first interest and /or
principal payment date following the current Fiscal Year.
1. Prepayment in Full
Only an Assessor's Parcel of Developed Property, or Taxable Property Owner
Association Property, Taxable Public Property or Approved Property for which a
building permit has been issued, may prepay Special Tax A. The obligation of
the Assessor's Parcel to pay the Special Tax A may be permanently satisfied
as described herein, provided that a prepayment may be made with respect to
a particular Assessor's Parcel only if there are no delinquent Special Taxes
with respect to such Assessor's Parcel at the time of prepayment. An owner of
an Assessor's Parcel intending to prepay the Special Tax A obligation shall
provide the CFD Administrator with written notice of intent to prepay. Within 30
days of receipt of such written notice, the CFD Administrator shall notify such
owner of the prepayment amount for such Assessor's Parcel. The CFD
Administrator may charge the owner prepaying Special Tax A a reasonable fee
for providing this service. Prepayment must be made not less than 45 days
prior to the next occurring date that notice of redemption of CFD No. 2014 -1
Bonds from the proceeds of such prepayment may be given by the Trustee
pursuant to the Indenture.
The Special Tax B may not be prepaid.
The Special Tax A Prepayment Amount (defined below) shall be calculated as
summarized below (capitalized terms as defined below):
Bond Redemption Amount
plus
Redemption Premium
plus
Future Facilities Amount
plus
Defeasance Amount
plus
Administrative Fees and Expenses
less
Reserve Fund Credit
less
Capitalized Interest Credit
Total: equals
Special Tax A Prepayment Amount
As of the proposed date of prepayment, the Special Tax A Prepayment Amount
shall be calculated as follows:
A -12
Paragraph No.:
Confirm that no Special Tax delinquencies apply to such Assessor's Parcel.
For Assessor's Parcels of Developed Property, Taxable Property Owner
Association Property, or Taxable Public Property for which a Building Permit has
been issued, compute the Maximum Special Tax A for the current Fiscal Year
applicable for the Assessor's Parcel to be prepaid. For Assessor's Parcels of
Approved Property for which a building permit has been issued, compute the
Maximum Special Tax A for the current Fiscal Year applicable for that Assessor's
Parcel as though it was already designated as Developed Property, based upon
the building permit which has already been issued for that Assessor's Parcel.
3. Divide the Maximum Special Tax A computed pursuant to paragraph 2 by the
total estimated Maximum Special Tax A for the entire CFD No. 2014 -1 based on
the Developed Property Special Tax A which could be levied in the current Fiscal
Year on all expected development through Build -out of CFD No. 2014-1,
excluding any Assessor's Parcels which have been prepaid.
4. Multiply the quotient computed pursuant to paragraph 3 by the Previously Issued
Bonds to compute the amount of Previously Issued Bonds to be retired and
prepaid (the "Bond Redemption Amount').
5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the
applicable redemption premium (e.g., the redemption price - 100 %), if any, on the
Previously Issued Bonds to be redeemed (the "Redemption Premium ").
6. Compute the current Future Facilities Costs.
7. Multiply the quotient computed pursuant to paragraph 3 by the amount
determined pursuant to paragraph 6 to compute the amount of Future Facilities
Costs to be prepaid (the "Future Facilities Amount').
8. Compute the amount needed to pay interest on the Bond Redemption Amount
from the first bond interest and /or principal payment date following the current
Fiscal Year until the earliest redemption date for the Previously Issued Bonds.
9. Determine any Special Tax A levied on the Assessor's Parcel in the current
Fiscal Year which has not yet been paid.
10. Compute the minimum amount the CFD Administrator reasonably expects to
derive from the reinvestment of the Special Tax A Prepayment Amount less the
Future Facilities Amount and the Administrative Fees and Expenses (defined
below) from the date of prepayment until the redemption date for the Previously
Issued Bonds to be redeemed with the prepayment.
11. Add the amounts computed pursuant to paragraphs 8 and 9 and subtract the
amount computed pursuant to paragraph 10 (the "Defeasance Amount').
12. The administrative fees and expenses of CFD No. 2014 -1 are as calculated by
the CFD Administrator and include the costs of computation of the prepayment,
A -13
the costs to invest the prepayment proceeds, the costs of redeeming CFD
No. 2014 -1 Bonds, and the costs of recording any notices to evidence the
prepayment and the redemption (the "Administrative Fees and Expenses ").
13. If reserve funds for the Previously Issued Bonds, if any, are at or above 100% of
the reserve requirement (as defined in the Indenture) on the prepayment date, a
reserve fund credit shall be calculated as a reduction in the applicable reserve
fund for the Previously Issued Bonds to be redeemed pursuant to the
prepayment (the "Reserve Fund Credit'). No Reserve Fund Credit shall be
granted if reserve funds are below 100% of the reserve requirement.
14. If any capitalized interest for the Previously Issued Bonds will not have been
expended as of the date immediately following the first interest and /or principal
payment following the current Fiscal Year, a capitalized interest credit shall be
calculated by multiplying the quotient computed pursuant to paragraph 3 by the
expected balance in the capitalized interest fund or account under the Indenture
after such first interest and /or principal payment (the "Capitalized Interest
Credit ").
15. The Special Tax A prepayment is equal to the sum of the amounts computed
pursuant to paragraphs 4, 5, 7, 11 and 12, less the amounts computed pursuant
to paragraphs 13 and 14 (the "Special Tax A Prepayment Amount').
From the Special Tax for Facilities Prepayment Amount, the amounts computed
pursuant to paragraphs 4, 5, 11, 13 and 14 shall be deposited into the
appropriate fund as established under the Indenture and be used to retire
Previously Issued Bonds or make debt service payments. The amount computed
pursuant to paragraph 7 shall be deposited into the Improvement Fund. The
amount computed pursuant to paragraph 12 shall be retained by the CFD
Administrator.
The Special Tax for Facilities Prepayment Amount may be insufficient to redeem a
full $5,000 increment of Previously Issued Bonds. In such cases, the increment
above $5,000 or integral multiple thereof will be retained in the appropriate fund
established under the Indenture to be used with the next prepayment of Previously
Issued Bonds or to make debt service payments.
As a result of the payment of the current Fiscal Year's Special Tax A levy as determined
under paragraph 9 (above), the CFD Administrator shall remove the current Fiscal
Year's Special Tax A levy for such Assessor's Parcel from the County tax rolls. With
respect to any Assessor's Parcel that is prepaid, the City Council shall cause a suitable
notice to be recorded in compliance with the Act, to indicate the prepayment of the
Special Tax A and the release of the Special Tax A lien on such Assessor's Parcel, and
the obligation of such Assessor's Parcel to pay the Special Tax A shall cease.
Notwithstanding the foregoing, no Special Tax A prepayment shall be allowed unless, at
the time of such proposed prepayment, the amount of Maximum Special Tax A that may
be levied on Taxable Property within CFD No. 2014 -1 (after excluding Public Property
and Property Owner Association Property as set forth in Section E) both prior to and
after the proposed prepayment is at least 1.1 times the maximum annual debt service on
all Previously Issued Bonds, plus the estimated annual Administration Expenses.
UWE
2. Prepayment in Part
The Special Tax A on an Assessor's Parcel of Developed Property or an Assessor's
Parcel of Taxable Property Owner Association Property, Taxable Public Property, or
Undeveloped Property for which a building permit has been issued may be partially
prepaid. The amount of the prepayment shall be calculated as in Section 1.1; except that
a partial prepayment shall be calculated according to the following formula:
PP = PE-A) X F) + A
These terms have the following meaning
PP = the partial prepayment
PE = the Special Tax A Prepayment Amount calculated according to Section 1.1
F = the percentage, expressed as a decimal, by which the owner of the
Assessor's Parcel is partially prepaying the Special Tax A.
A = Administrative Fees and Expenses
The owner of any Assessor's Parcel who desires such prepayment shall notify the CFD
Administrator of such owner's intent to partially prepay the Special Tax A and the
percentage by which the Special Tax A shall be prepaid. The CFD Administrator shall
provide the owner with a statement of the amount required for the partial prepayment
of the Special Tax A for an Assessor's Parcel within 30 days of the request and may
charge a reasonable fee for providing this service. With respect to any Assessor's
Parcel that is partially prepaid, the Council shall (i) distribute the funds remitted to it
according to Section 1.1, and (ii) indicate in the records of CFD No. 2014 -1 that there
has been a partial prepayment of the Special Tax A and that a portion of the Special
Tax A with respect to such Assessor's Parcel, equal to the outstanding percentage
(1.00 - F) of the remaining Maximum Special Tax A, shall continue to be levied on such
Assessor's Parcel pursuant to Section D.
Notwithstanding the foregoing, no Special Tax A prepayment shall be allowed unless,
at the time of such proposed prepayment, the amount of Maximum Special Tax A that
may be levied on Taxable Property within CFD No. 2014 -1 (after excluding Public
Property and Property Owner Association Property as set forth in Section E)both
prior to and after the proposed prepayment is at least 1.1 times the maximum annual
debt service on all Previously Issued Bonds, plus the cost of annual CFD administration.
I. TERM OF SPECIAL TAX
The Special Tax A shall be levied for a period not to exceed forty years commencing
with Fiscal Year 2014 -2015. The Special Tax B shall be levied as long as necessary to
meet the Special Tax B Requirement for Services.
A -15
EXHIBIT B
SAMPLE BALLOT
CITY OF TUSTIN
COMMUNITY FACILITIES DISTRICT NO. 2014 -1
( TUSTIN LEGACY /STANDARD PACIFIC)
SPECIAL TAX AND SPECIAL BOND ELECTION
June 17. 2014
This ballot represents _ votes.
To vote, stamp a cross ( +) in the voting square after the word "YES" or after the
word "NO ". All marks otherwise made are forbidden. All distinguishing marks are forbidden and
make the ballot void.
PROPOSITION A: Shall the City of Tustin Community Facilities District
No. 2014 -1 (Tustin Legacy /Standard Pacific) (the "District') incur an
indebtedness and issue bonds of the District in the maximum principal
amount of $29,000,000, with interest at a rate or rates not to exceed the YES
maximum interest rate permitted by law, to finance the Facilities and the
Incidental Expenses described in Resolution No. 14 -34 adopted by the NO_
City Council of the City of Tustin?
PROPOSITION B: Shall special taxes with a. rate and method of
apportionment as provided in Resolution No. 14 -40 adopted by the City of
Tustin, acting as the legislative body of the District, be levied to pay for YES
the Facilities, Services, Incidental Expenses and other purposes
described in Resolution No. 14 -34, including the payment of the principal NO
of and interest on bonds issued by the District to finance the Facilities and
Incidental Expenses?
PROPOSITION C: For each year commencing with Fiscal Year 2014 -15,
shall the appropriations limit, as defined by subdivision (h) of Section S of YES
Article XIIIB of the California Constitution, for the District be an amount
equal to $29,000,000? NO
L1il
RESOLUTION NO. 14-41
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUSTIN, ACTING AS THE LEGISLATIVE BODY OF THE
CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO.
2014 -1 (TUSTIN LEGACY /STANDARD PACIFIC),
DETERMINING THE NECESSITY TO INCUR BONDED
INDEBTEDNESS WITHIN THE DISTRICT AND CALLING AN
ELECTION THEREIN
WHEREAS, on May 6, 2014, the City Council (the "City Council') of the City of Tustin,
California, adopted Resolution No. 14 -34 (the 'Resolution of Intention ") stating its intention to
form the City of Tustin Community Facilities District No. 2014 -1 (Tustin Legacy /Standard
Pacific) (the "Community Facilities District') pursuant to the Mello -Roos Community Facilities
Act of 1982, as amended (the "Act'); and
WHEREAS, on May 6, 2014, the City Council also adopted Resolution No. 14 -35 stating
its intention to incur bonded indebtedness for the proposed Community Facilities District in an
amount not to exceed $29,000,000 to finance: (1) the purchase, construction, expansion,
improvement or rehabilitation of public improvements identified in Exhibit B to the Resolution of
Intention, including all furnishings, equipment and supplies related thereto (collectively, the
"Facilities ") and (2) the incidental expenses to be incurred in financing the Facilities and forming
and administering the Community Facilities District (the "Incidental Expenses "); and
WHEREAS, notice was published as required by law relative to the conducting of a
public hearing by the City Council with respect to the formation of the proposed Community
Facilities District and the incurrence of bonded indebtedness for the Community Facilities
District; and
WHEREAS, on June 17, 2014, the City Council opened a noticed public hearing to
determine whether it should proceed to form the Community Facilities District, issue bonds to
pay for the Facilities and Incidental Expenses and to authorize the rate and method of
apportionment of a special tax to be levied within the Community Facilities District for the
purposes described in the Resolution of Intention; and
WHEREAS, at said public hearing all persons desiring to be heard on all matters
pertaining to the formation of the Community Facilities District, the levy of a special tax and the
issuance of bonds to pay for the cost of the proposed Facilities and Incidental Expenses were
heard and a full and fair hearing was held; and
WHEREAS, subsequent to such hearing the City Council adopted a resolution
establishing the Community Facilities District (the "Resolution of Formation "); and
WHEREAS, the City Council desires to make the necessary findings to incur bonded
indebtedness for the Community Facilities District, to declare the purpose for said indebtedness,
and to authorize the submittal of certain propositions relating to the Community Facilities District
to the City, as the sole property owner therein, all as authorized and required by law;
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE
CITY COUNCIL OF THE CITY OF TUSTIN, ACTING IN ITS CAPACITY AS THE
LEGISLATIVE BODY OF THE CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO
2014 -1 (TUSTIN LEGACY /STANDARD PACIFIC), AS FOLLOWS:
Section 1. It is necessary to incur bonded indebtedness for the Community Facilities
District in a maximum aggregate principal amount not to exceed $29,000,000.
Section 2. The indebtedness is to be incurred for the purpose of financing the costs of
purchasing, constructing, modifying, expanding, improving, or rehabilitating the Facilities, as
described in the Resolution of Intention and the Resolution of Formation, financing the
Incidental Expenses, and carrying out the powers and purposes of the Community Facilities
District, including, but not limited to, financing the costs of selling the bonds, establishing and
replenishing bond reserve funds and paying remarketing, credit enhancement and liquidity
facility fees (including such fees for instruments which serve as the basis of a reserve fund in
lieu of cash), administrative expenses and other expenses of the type authorized by Section
53345.3 of the Act.
Section 3. The whole of the property within the Community Facilities District, other than
property exempted from the special tax pursuant to the provisions of the rate and method of
apportionment of special tax attached to the Resolution of Formation as Exhibit A, shall pay for
the bonded indebtedness of the Community Facilities District pursuant to the levy of the special
tax authorized by the Resolution of Formation.
Section 4. The maximum term of the bonds to be issued shall in no event exceed forty
(40) years.
Section 5. The bonds shall bear interest at the rate or rates not to exceed the maximum
interest rate permitted by law, payable annually or semiannually, or in part annually and in part
semiannually, except the first interest payment may be for a period of less than six months, with
the actual rate or rates and times of payment to be determined at the time or times of sale
thereof.
Section 6. The bonds may bear a variable or fixed interest rate, provided that such
variable rate or the fixed rate shall not exceed the maximum rate permitted by Section 53531 of
the California Government Code, or any other applicable provision of law limiting the maximum
interest rate on the bonds.
Section 7. Pursuant to Section 53351 of the Act, a special election is hereby called for
the Community Facilities District on the proposition of incurring the bonded indebtedness. The
proposition relative to incurring bonded indebtedness for the Community Facilities District shall
be in the form set forth in Exhibit B to the Resolution of Formation. The election in the
Community Facilities District on the proposition of incurring bonded indebtedness shall be
consolidated with the election and on the propositions to levy a special tax and to establish an
appropriations limit for the Community Facilities District, which propositions shall be in the forms
set forth in Exhibit B to the Resolution of Formation.
Section 8. The date of the consolidated special election for the Community Facilities
District shall be June 17, 2014, or such later date as is consented to by the City Clerk of the City
of Tustin (the "City Clerk") and the City, as the sole property owner within the Community
Facilities District. The election shall be conducted by the City Clerk and the Mayor of the City of
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Tustin is hereby designated to vote on its behalf. Except as otherwise provided by the Act, the
election shall be conducted in accordance with the provisions of law regulating elections of the
City insofar as such provisions are determined by the City Clerk to be applicable. The City
Clerk is authorized to conduct the election following the adoption of the Resolution of Formation
and this resolution; and all ballots shall be received by, and the City Clerk shall close the
election by 8:00 p.m. on the election day; provided the election shall be closed at such earlier
time as all qualified electors have voted as provided in Section 53326(d) of the Act. It is hereby
found that there are fewer than 12 registered voters within the territory of the Community
Facilities District and, pursuant to Section 53351 Q) of the Act, the ballots for the special election
shall be distributed in person to the City, as the sole landowner of record within the Community
Facilities District, as of the close of the June 17, 2014 hearing regarding the formation of the
Community Facilities District. The City shall have one vote for each acre or portion thereof that
it owns within the Community Facilities District, as provided in Section 53326 of the Act. As the
sole property owner within the Community Facilities District, the City hereby waives any
requirement to publish this resolution pursuant to Section 53352 of the Act.
Section 9. This Resolution shall be effective upon its adoption.
PASSED AND ADOPTED by the City Council at a regular meeting held on the 17th day
of June, 2014.
CITY COUNCIL OF THE CITY OF TUSTIN
0
ATTEST:
Jeffrey C. Parker
City Clerk of the City of Tustin
Elwyn A. Murray,
Mayor of the City of Tustin
STATE OF CALIFORNIA )
COUNTY OF ORANGE )ss.
CITY OF TUSTIN )
I, JEFFREY C. PARKER, City Clerk of the City of Tustin, do hereby certify that the
foregoing Resolution was duly adopted by the City Council of the City of Tustin at a regular
meeting held on the 17th day of June, 2014, by the following votes:
AYES: COUNCIL MEMBERS
NOES: COUNCIL MEMBERS
ABSENT: COUNCIL MEMBERS
JEFFREY C. PARKER, CITY CLERK
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RESOLUTION NO. 14 -42
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUSTIN, ACTING IN ITS CAPACITY AS THE
LEGISLATIVE BODY OF THE CITY OF TUSTIN
COMMUNITY FACILITIES DISTRICT NO. 2014 -1
(TUSTIN LEGACY /STANDARD PACIFIC), CERTIFYING
THE RESULTS OF THE JUNE 17, 2014 SPECIAL TAX
AND BOND ELECTIONS
WHEREAS, the City Council (the "City Council ") of the City of Tustin, California (the
"City'), acting as the legislative body of the City of Tustin Community Facilities District No. 2014-
1 (Tustin Legacy /Standard Pacific) (the "Community Facilities District'), called and duly held
elections on June 17, 2014 within the boundaries of the Community Facilities District pursuant
to its Resolution Nos. 14 -40 and 14 -41 for the purpose of presenting to the qualified electors
within the Community Facilities District the propositions in the sample ballot which is attached
hereto as Exhibit A; and
WHEREAS, there has been presented to the City Council a certificate of the City Clerk
canvassing the results of the election, a copy of which is attached hereto as Exhibit B;
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE
CITY COUNCIL OF THE CITY OF TUSTIN, ACTING IN ITS CAPACITY AS THE
LEGISLATIVE BODY OF THE CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO
2014 -1 (TUSTIN LEGACY /STANDARD PACIFIC), AS FOLLOWS:
Section 1. Each of the above recitals is true and correct and is adopted by the
legislative body of the Community Facilities District.
Section 2. Propositions A, B and C presented to the qualified electors of the Community
Facilities District on June 17, 2014 were approved by more than two- thirds of the votes cast at
the election held for the Community Facilities District, and each of Propositions A, B and C has
carried. The City Council is hereby authorized to levy on the land within the Community
Facilities District the special tax described in Proposition B for the purposes described therein
and to take the necessary steps to levy the special tax authorized by Proposition B and to issue
bonds in an amount not to exceed $29,000,000 specified in Proposition A.
Section 3. The City Clerk is hereby directed to record in the Office of the County
Recorder within fifteen days of the date hereof a notice of special tax lien which Bond Counsel
to the Community Facilities District shall prepare in the form required by Streets and Highways
Code Section 3114.5.
PASSED AND ADOPTED by the City Council at a regular meeting held on the 17th day
of June, 2014.
CITY COUNCIL OF THE CITY OF TUSTIN
AD
ATTEST:
Jeffrey C. Parker
City Clerk of the City of Tustin
STATE OF CALIFORNIA )
COUNTY OF ORANGE )ss.
CITY OF TUSTIN )
Elwyn A. Murray,
Mayor of the City of Tustin
I, JEFFREY C. PARKER, City Clerk of the City of Tustin, do hereby certify that the
foregoing Resolution was duly adopted by the City Council of the City of Tustin at a regular
meeting held on the 17th day of June, 2014, by the following votes:
AYES: COUNCIL MEMBERS
NOES: COUNCIL MEMBERS
ABSENT: COUNCIL MEMBERS
JEFFREY C. PARKER, CITY CLERK
Attachments: Exhibits A and B
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EXHIBIT A
SAMPLE BALLOT
CITY OF TUSTIN
COMMUNITY FACILITIES DISTRICT NO. 2014 -1
( TUSTIN LEGACY /STANDARD PACIFIC)
SPECIAL TAX AND SPECIAL BOND ELECTION
June 17. 2014
This ballot represents 79 votes.
To vote, stamp a cross ( +) in the voting square after the word "YES" or after the
word "NO ". All marks otherwise made are forbidden. All distinguishing marks are forbidden and
make the ballot void.
PROPOSITION A: Shall the City of Tustin Community Facilities District
No. 2014 -1 (Tustin Legacy /Standard Pacific) (the "District') incur an
indebtedness and issue bonds of the District in the maximum principal
amount of $29,000,000, with interest at a rate or rates not to exceed the
maximum interest rate permitted by law, to finance the Facilities and the
Incidental Expenses described in Resolution No. 14 -34 adopted by the
City Council of the City of Tustin?
PROPOSITION B: Shall special taxes with a rate and method of
apportionment as provided in Resolution No. 14 -40 adopted by the City of
Tustin, acting as the legislative body of the District, be levied to pay for
the Facilities, Services, Incidental Expenses and other purposes
described in Resolution No. 14 -34, including the payment of the principal
of and interest on bonds issued by the District to finance the Facilities and
Incidental Expenses?
PROPOSITION C: For each year commencing with Fiscal Year 2014 -15,
shall the appropriations limit, as defined by subdivision (h) of Section 8 of
Article XIIIB of the California Constitution, for the District be an amount
equal to $29,000,000?
YES
YES
NO
YES
NO
EXHIBIT B
CERTIFICATE OF THE CITY CLERK
AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS
I, Jeffrey C. Parker, City Clerk of City of Tustin, do hereby certify that I have examined
the returns of the Special Tax and Special Bond Election for the City of Tustin Community
Facilities District No. 2014 -1 (Tustin Legacy /Standard Pacific) (the "Community Facilities
District'). The election was held in the chambers of the City Council at 300 Centennial Way,
Tustin, California, on June 17, 2014. 1 caused to be delivered a ballot to the authorized
representative of each qualified elector. One (1) ballot was returned.
I further certify that the results of said election and the number of votes cast for and
against Propositions A, B and C are as follows:
PROPOSITION A
PROPOSITION B
YES:
79
YES:
79
NO:
0
NO:
0
TOTAL:
79
TOTAL:
79
Dated this 17th day of June, 2014.
Lail
PROPOSITION C
YES: 79
NO: 0
TOTAL: 79
Jeffrey C. Parker, City Clerk
City of Tustin
ORDINANCE NO. 1445
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF THE
CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2014 -1
(TUSTIN LEGACY /STANDARD PACIFIC), LEVYING A SPECIAL
TAX WITHIN THE DISTRICT
WHEREAS, on May 6, 2014, the City Council (the "City Council ") of the City of Tustin
(the "City') adopted Resolution No. 14 -34 declaring its intention to form the City of Tustin
Community Facilities District No. 2014 -1 (Tustin Legacy /Standard Pacific) (the "Community
Facilities District ") pursuant to the Mello -Roos Community Facilities Act of 1982, as amended,
comprising Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of
California (the "Act "), and adopted Resolution No. 14 -35 declaring its intention to incur bonded
indebtedness for the Community Facilities District; and
WHEREAS, on June 17, 2014, after providing all notice required by the Act, the City
Council opened a public hearing required by the Act relative to the formation of the Community
Facilities District, the proposed levy of a special tax within the Community Facilities District to
provide certain services and finance certain public improvements and incidental expenses
described in Resolution No. 14 -34 and to secure the payment of any bonded indebtedness of
the Community Facilities District, and the proposed issuance of up to $29,000,000 of bonded
indebtedness for the Community Facilities District; and
WHEREAS, at the public hearing, all persons desiring to be heard on all matters
pertaining to the formation of the Community Facilities District, the proposed levy of the special
tax within the Community Facilities District to provide for the services and to finance the
improvements and incidental expenses described in Resolution No. 14 -34 and the proposed
issuance of bonded indebtedness for the Community Facilities District were heard and a full and
fair hearing was held; and
WHEREAS, on June 17, 2014, following the close of the public hearing, the City Council
adopted a resolution establishing the Community Facilities District (the "Resolution of
Formation ") and a resolution determining the necessity to incur bonded indebtedness for the
Community Facilities District (the "Resolution to Incur Bonded Indebtedness "); and
WHEREAS, because the sole property owner within the Community Facilities District is
the City, both the Resolution of Formation and the Resolution to Incur Bonded Indebtedness
designated the Mayor of the City as the City's representative for purposes of approving or
rejecting the levying of a special tax, the incurring of bonded indebtedness and the
establishment of an appropriations limit for the Community Facilities District; and
WHEREAS, on June 17, 2014, the Mayor cast a ballot on behalf of the City approving
such actions.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUSTIN ACTING IN ITS
CAPACITY AS THE LEGISLATIVE BODY OF THE CITY OF TUSTIN COMMUNITY
FACILITIES DISTRICT NO. 2014 -1 (TUSTIN LEGACY /STANDARD PACIFIC), ORDAINS AS
FOLLOWS:
Section 1. The above recitals are all true and correct.
Section 2. By the passage of this Ordinance, the City Council authorizes and levies a
special tax within the Community Facilities District at the maximum rates and in accordance with
the rate and method of apportionment set forth in Exhibit A to the Resolution of Formation,
which rate and method of apportionment is incorporated by reference herein (the "Rate and
Method ").
Section 3. The Director of Finance of the City, or such other officer of the City
designated by the Mayor, is hereby further authorized and directed each fiscal year, on or
before the date required by the County of Orange to put on its tax roll, or such later date as is
permitted by law, to determine the specific special tax rates and amounts to be levied for the
next ensuing fiscal year for each parcel of real property within the specific special tax rate and
amount to be levied on each parcel of land in the Community Facilities District pursuant to the
Rate and Method. The special tax rate to be levied pursuant to the Rate and Method shall not
exceed the applicable maximum rates set forth therein, but the special tax may be levied at a
lower rate.
Section 4. Properties or entities of the state, federal or other local governments shall be
exempt from the special tax, except as otherwise provided in Sections 53317.3 and 53317.5 of
the Act and the Rate and Method. No other properties or entities are exempt from the special
tax unless the properties or entities are expressly exempted in the Resolution of Formation, or in
a resolution of consideration to levy a new special tax or special taxes or to alter the Rate or
Method of an existing special tax as provided in Section 53334 of the Act.
Section 5. All of the collections of the special tax pursuant to the Rate and Method shall
be used as provided for in the Act and the Resolution of Formation. The special tax shall be
levied within the Community Facilities District only so long as needed for the purposes
described in the Resolution of Formation.
Section 6. The special tax levied pursuant to the Rate and Method 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 case of delinquency as is
provided for ad valorem taxes (which such procedures include the exercise of all rights and
remedies permitted by law to make corrections, including, but not limited to, the issuance of
amended or supplemental tax bills), as such procedure may be modified by law or by this City
Council from time to time.
Section 7. As a cumulative remedy, if any amount levied as a special tax for payment of
the interest or principal of any bonded indebtedness of the Community Facilities District,
together with any penalties and other charges accruing under this Ordinance, are not paid when
due, the City Council may, not later than four years after the due date of the last installment of
principal on the Bonds, order that the same be collected by an action brought in the superior
court to foreclose the lien of such special tax.
Section 8. This Ordinance relating to the levy of the special tax within the Community
Facilities District shall take effect 30 days following its final passage, and the specific
authorization for adoption is pursuant to the provisions of Section 53340 of the Act.
Section 9. Pursuant to Section 50075.3 of the California Government Code, the Director
of Finance shall file a report each fiscal year with the City Council which shall contain (i) the
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amount of funds collected and expended from the levy of Special Taxes within the Community
Facilities District and (ii) the status of any project required or authorized to be funded from the
levy of Special Taxes within the Community Facilities District or from bonds secured by the levy
of Special Taxes within the Community Facilities District.
Section. 10. The City Clerk is hereby authorized to transmit a certified copy of this
Ordinance to the Orange County Assessor and Treasurer -Tax Collector, and to perform all other
acts which are required by the Act, this Ordinance or by law in order to accomplish the purpose
of this Ordinance.
INTRODUCED, ADOPTED, SIGNED AND APPROVED ON the 15th day of July, 2014.
CITY COUNCIL OF THE CITY OF TUSTIN
By:
Elwyn A. Murray,
Mayor of the City of Tustin
ATTEST:
Jeffrey C. Parker
City Clerk of the City of Tustin
STATE OF CALIFORNIA )
COUNTY OF ORANGE )ss.
CITY OF TUSTIN )
I, JEFFREY C. PARKER, City Clerk of the City of Tustin, do hereby certify that the
foregoing Ordinance was duly adopted by the City Council of the City of Tustin at a regular
meeting held on the 15th day of July, 2014, by the following votes:
AYES: COUNCIL MEMBERS
NOES: COUNCIL MEMBERS
ABSENT: COUNCIL MEMBERS
JEFFREY C. PARKER, CITY CLERK
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