HomeMy WebLinkAbout02 COMM FAC DISTRICT 04-01 07-19-04
AGENDA REPORT
Agenda Item
Reviewed:
City Manager MJ/J,
Finance Director ~
2
MEETING DATE:
July 19, 2004
TO:
William A. Huston, City Manager
FROM:
Ronald A. Nault, Finance Director
SUBJECT:
CONDUCT A PUBLIC HEARING AND HOLD A SPECIAL ELECTION
FOR CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 04-1
(TUSTIN LEGACY/JOHN LAING HOMES) AND ADOPT VARIOUS
RESOLUTIONS AND AN ORDINANCE FORMING THE DISTRICT
Summary:
The actions taken by the City at this time will finalize the formation of the Community Facilities
District (CFD) for John Laing Homes. The City Council will conduct and certify a special
election of property owners in the proposed district.
Recommendation:
1. Conduct a public hearing to hear presentations by staff and consultants and hear
questions and comments from audience.
2. Adopt Resolution No. 04-67, a Resolution of the City Council of the City of Tustin,
California, of Formation of City of Tustin Community Facilities District No. 04-1 (Tustin
Legacy/John Laing Homes), Authorizing the Levy of a Special Tax within the District
and Establishing an Appropriations Limit for the District".
3. Adopt Resolution No. 04-68, a Resolution of the City Council of the City of Tustin,
California, Deeming it Necessary to Incur Bonded Indebtedness within City of Tustin
Community Facilities District No. 04-1 (Tustin Legacy/John Laing Homes).
4. Adopt Resolution No. 04-69, a Resolution of the City Council of the City of Tustin,
California, Calling Special Election for City of Tustin Community Facilities District No.
04-1 (Tustin Legacy/John Laing Homes).
5.
Direct the City Clerk to open ballots and announce the results of the election.
6. Adopt Resolution No. 04-70, a Resolution of the City Council of the City of Tustin,
California, Declaring Results of Special Election and Directing Recording of Notice of
Special Tax Lien.
7. Have first reading of Ordinance No. 1286, an Ordinance of the City of Tustin, California,
Levying Special Taxes within the City of Tustin Community Facilities District No. 04-1
(Tustin Legacy/John Laing Homes).
8.
Receive and File the Community Facilities District Report dated July 8,2004.
Fiscal Impact:
None.
Discussion:
The actions recommended to the City Council are the final steps in the process of creating the
initial Community Facilities District for the Legacy project. The second reading of Ordinance
No. 1286 is scheduled for August 2nd. The City Council will be asked to review and approve
bond and disclosure documents at their September 20th meeting. We are on track to effectuate
the closing for this first CFD on Thursday, October 14, 2004.
Staff and various consultants will be available at the meeting to respond to questions from the
City Council.
RAN:ts
Attachments
RAN :CommunityF acilitiesDistrictO4-1 PublicHearingStaffReport.doc
RESOLUTION NO. 04-67
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, OF FORMATION OF CITY OF TUSTIN COMMUNITY
FACILITIES DISTRICT NO. 04-1 (TUSTIN LEGACY/JOHN LAING
HOMES), AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN
THE DISTRICT AND ESTABLISHING AN APPROPRIATIONS LIMIT
FOR THE DISTRICT
WHEREAS, on June 7, 2004, the City Council (the "City Council") of the City of
Tustin (the "City"), pursuant to the Mello-Roos Community Facilities Act of 1982 (the
"Act"), adopted a resolution entitled "A Resolution of the City Council of the City of
Tustin, California of Intention to Establish a Community Facilities District and to
Authorize the Levy of Special Taxes" (the "Resolution of Intention"), stating its intention
to establish a community facilities district (the "Community Facilities District") proposed
to be named City of Tustin Community Facilities District No. 04-1 (Tustin Legacy/John
Laing Homes), to authorize the levy of special taxes within the Community Facilities
District to finance certain public facilities and services and setting the date for a public
hearing to be held on the establishment of the Community Facilities District;
WHEREAS, pursuant to the Resolution of Intention, notice of said public hearing
was published in the Tustin News, a newspaper of general circulation published in the
area of the Community Facilities District, in accordance with the Act;
WHEREAS, on this date, the City Council opened, conducted and closed said
public hearing;
WHEREAS, pursuant to the Resolution of Intention, each officer of the City who
is or will be responsible for providing one or more of the proposed types of public
facilities or services was directed to study, or cause to be studied, the proposed
Community Facilities District and, at or before said public hearing, file a report with the
City Council containing a brief description of the public facilities and services by type
which will in his or her opinion be required to adequately meet the needs of the
Community Facilities District, and his or her estimate of the cost of providing such public
facilities and services; such officers were also directed to estimate the fair and
reasonable cost of the public facilities proposed to be purchased as completed public
facilities and of the incidental expenses proposed to be paid;
WHEREAS, said report was so filed with the City Council and made a part of the
record of said public hearing;
WHEREAS, at the hearing, the testimony of all interested persons and taxpayers
for or against the establishment of the Community Facilities District, the extent of the
Community Facilities District and the furnishing of the specified types of public facilities
or services was heard;
WHEREAS, written protests against the establishment of the Community
Facilities District, the furnishing of any specified type or types of facilities or services
within the Community Facilities District or the levying of any specified special tax were
not made or filed at or before said hearing by 50% or more of the registered voters, or
six registered voters, whichever is more, residing within the territory proposed to be
included in the Community Facilities District, or the owners of one-half or more of the
area of land in the territory proposed to be included in the Community Facilities District
and not exempt from the special tax;
WHEREAS, there has been filed with the City Clerk of the City a letter from the
Registration and Elections Department of the County of Orange indicating that 12 or
more persons have not been registered to vote within the territory of the proposed
Community Facilities District for each of the 90 days preceding the close of said public
hearing;
WHEREAS, Section 53314.9 of the Act provides that, at any time either before or
after the formation of a community facilities district, the legislative body may accept
advances of funds from any source, including, but not limited to, private persons or
private entities and may provide, by resolution, for the use of those funds for any
authorized purpose, including, but not limited to, paying any cost incurred by the local
agency in creating a community facilities district;
'"
WHEREAS, Section 53314.9 of the Act further provides that the legislative body
may enter into an agreement, by resolution, with the person or entity advancing the
funds, to repay all or a portion of the funds advanced, as determined by the legislative
body, with or without interest, under all the following conditions: (a) the proposal to
repay the funds is included in both the resolution of intention to establish a community
facilities district adopted pursuant to Section 53521 of the Act and in the resolution of
formation to establish a community facilities district pursuant to Section 53325.1 of the
Act, (b) any proposed special tax is approved by the qualified electors of the community
facilities district pursuant to the Act, and (c) any agreement shall specify that if the
qualified electors of the community facilities district do not approve the proposed special
tax, the local agency shall return any funds which have not been committed for any
authorized purpose by the time of the election to the person or entity advancing the
funds; and
WHEREAS, the City and WL Homes LLC (the "Landowner") have entered into a
Deposit and Reimbursement Agreement, dated as of June 1, 2004 (the "Deposit
Agreement"), pursuant to which the Landowner has heretofore advanced certain funds,
and the Landowner has agreed to advance additional funds, which have been or may
be used to pay costs incurred in connection with the creation of the Community
Facilities District and the issuance of special tax bonds thereby and, in accordance with
Section 53314.9 of the Act, the City desires to accept such advances and to reimburse
the Landowner therefor, without interest, from the proceeds of special tax bonds issued
by the Community Facilities District;
2
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tustin
as follows:
Section 1. The foregoing recitals are true and correct.
Section 2. The Community Facilities District is hereby established pursuant to
the Act.
Section 3. The Community Facilities District is hereby named "City of Tustin
Community Facilities District No. 04-1 (Tustin Legacy/John Laing Homes)".
Section 4. The public facilities (the "Facilities") proposed to be financed by the
Community Facilities District pursuant to the Act are described under the caption
"Facilities" on Exhibit A hereto, which is by this reference incorporated herein. All of the
Facilities are proposed to be purchased as completed public facilities. The services (the
"Services") proposed to be financed by the Community Facilities District pursuant to the
Act are described under the caption "Services" on Exhibit A hereto. The incidental
expenses proposed to be incurred are identified under the caption "Incidental
Expenses" on Exhibit A hereto. All or any portion of the Facilities may be financed
through a financing plan, including, but not limited to, a lease, lease-purchase or
installment-purchase arrangement.
Section 5. The proposed special tax to be levied within the Community Facilities
District has not been precluded by majority protest pursuant to Section 53324 of the
Act.
Section 6. Except where funds are otherwise available, a special tax sufficient to
pay for all Facilities and Services, secured by recordation of a continuing lien against all
nonexempt real property in the Community Facilities District, will be annually levied
within the Community Facilities District. The rate and method of apportionment of the
special tax (the "Rate and Method"), in sufficient detail to allow each landowner within
the proposed Community Facilities District to estimate the maximum amount that he or
she will have to pay, is described in Exhibit B attached hereto, which is by this reference
incorporated herein. The conditions under which the obligation to pay the special tax
may be prepaid and permanently satisfied are specified in the Rate and Method. The
special tax will be collected in the same manner as ordinary ad valorem property taxes
or in such other manner as the City Council shall determine, including direct billing of
the affected property owners.
Section 7. The tax year after which no further special tax to pay for public
facilities will be levied against any parcel used for private residential purposes is
specified in the Rate and Method. Under no circumstances shall the special tax to pay
for public facilities levied against any parcel used for private residential purposes be
increased as a consequence of delinquency or default by the owner of any other parcel
or parcels within the Community Facilities District by more than 10%. For purposes of
this paragraph, a parcel shall be considered "used for private residential purposes" not
later than the date on which an occupancy permit for private residential use is issued.
3
Section 8. Pursuant to Section 53344.1 of the Act, the City Council hereby
reserves to itself the right and authority to allow any interested owner of property within
the Community Facilities District, subject to the provisions of said Section 53344.1 and
to those conditions as it may impose, and any applicable prepayment penalties as
prescribed in the bond indenture or comparable instrument or document, to tender to
the Community Facilities District treasurer in full payment or part payment of any
installment of the special taxes or the interest or penalties thereon which may be due or
delinquent, but for which a bill has been received, any bond or other obligation secured
thereby, the bond or other obligation to be taken at par and credit to be given for the
accrued interest shown thereby computed to the date of tender.
Section 9. The name, address and telephone number of the office which will be
responsible for preparing annually a current roll of special tax levy obligations by
assessor's parcel number and which will be responsible for estimating further special
tax levies pursuant to Section 53340.1 of the Act are as follows: Finance Director, City
of Tustin, 300 Centennial Way, Tustin, California 92680, (714) 573-3061.
Section 10. Upon recordation of a notice of special tax lien pursuant to Section
3114.5 of the California Streets and Highways Code, a continuing lien to secure each
levy of the special tax shall attach to all nonexempt real property in the Community
Facilities District and this lien shall continue in force and effect until the special tax
obligation is prepaid and permanently satisfied and the lien canceled in accordance with
law or until collection of the tax by the City Council ceases.
Section 11. The boundary map of the Community Facilities District has been
recorded in the County of Orange in Book 88 at Page 49 of Maps of Assessments and
Community Facilities Districts in the office of the County Recorder of the County of
Orange.
Section 12. The annual appropriations limit, as defined by subdivision (h) of
Section 8 of Article XIII B of the California Constitution, of the Community Facilities
District is hereby established at $15,000,000.
Section 13. Pursuant to the provisions of the Act, the levy of the special tax and
a proposition to establish the appropriations limit specified above shall be subject to the
approval of the qualified electors of the Community Facilities District at a special
election. The City Council hereby finds and determines that 12 or more persons have
not been registered to vote within the territory of the Community Facilities District for
each of the 90 days preceding the close of the public hearing held by the City Council
on the establishment of the Community Facilities District. Accordingly, pursuant to
Section 53326 of the Act, the vote shall be by the landowners of the Community
Facilities District and each landowner who is the owner of record as of the close of said
public hearings, or the authorized representative thereof, shall have one vote for each
acre or portion of an acre that he or she owns within the Community Facilities District.
The voting procedure shall be by mailed or hand-delivered ballot.
4
Section 14. The Landowner has heretofore advanced certain funds, and may
advance additional funds, which have been or may be used to pay costs incurred in
connection with the creation of the Community Facilities District and the issuance of
special tax bonds thereby. The City Council has previously approved the acceptance of
such funds for the purpose of paying costs incurred in connection with the creation of
the Community Facilities District and the issuance of special tax bonds thereby. The
City Council proposes to repay all or a portion of such funds expended for such
purpose, solely from the proceeds of such bonds, pursuant to the Deposit Agreement.
The Deposit Agreement is hereby incorporated herein as though set forth in full herein.
Section 15. The City Council hereby finds and determines that all proceedings
up to and including the adoption of this Resolution were valid and in conformity with the
requirements of the Act. In accordance with Section 53325.1 of the Act, such finding
shall be final and conclusive.
Section 16. The officers, employees and agents of the City are hereby
authorized and directed to take all actions and do all things which they, or any of them,
may deem necessary or desirable to accomplish the purposes of this Resolution and
not inconsistent with the provisions hereof.
Section 17. This Resolution shall take effect immediately upon its adoption.
PASSED and ADOPTED at a regular meeting of the City Council of the City of
Tustin held on July 19, 2004.
TONY KAWASHIMA
Mayor
ATTEST:
PAMELA STOKER
City Clerk
5
EXHIBIT A
FACILITIES, SERVICES AND INCIDENTAL EXPENSES
Facilities
The types of facilities proposed to be financed by the Community Facilities
District are street improvements, including grading, paving, curbs and gutters,
sidewalks, street signalization and signage, street lights and parkway and landscaping
related thereto, storm drains, public utilities, public parks and recreation facilities, public
library facilities, fire protection facilities and equipment and land, rights-of-way and
easements necessary for any of such facilities.
Services
The types of services proposed to be financed by the Community Facilities
District are police protection services, fire protection services, ambulance and
paramedic services, recreation program services, maintenance of parks, parkways and
open space and flood and storm protection services.
Incidental Expenses
The incidental expenses proposed to be incurred include the following:
(a) the cost of planning and designing public facilities to be financed,
including the cost of environmental evaluations of those facilities;
(b) the costs associated with the creation of the Community Facilities
District, issuance of bonds, determination of the amount of taxes, collection of
taxes, payment of taxes, or costs otherwise incurred in order to carry out the
authorized purposes of the Community Facilities District; and
(c) any other expenses incidental to the construction, completion, and
inspection of the authorized work.
A-I
EXHIBIT B
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
B-1
RA TE AND METHOD OF APPORTIONMENT FOR
CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 04-1
(TUSTIN LEGACY/JOHN LAING HOMES)
A Special Tax shall be levied on all Assessor's Parcels in City of Tustin Community Facilities
District No. 04-1 (Tustin Legacy/John Laing Homes) ("CFD No. 04-1 ") and collected each Fiscal
Year commencing in Fiscal Year 2004-2005, in an amount determined through the application ofthe
Rate and Method of Apportionment as described below. All of the real property in CFD No. 04-1,
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 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 an Assessor's Parcel Map, the land area
shown on the applicable final map, 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 Community Facilities Act of 1982, being Chapter 2.5,
Division 2 of Title 5 of the Califomia Government Code.
"Administrative Expenses" means the following actual or reasonably estimated costs
directly related to the administration of CFD No. 04-1: 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 County
or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs ofthe Trustee
(including its legal counsel) in the discharge of the duties required of it under the Indenture;
the costs to the City, CFD No. 04-1 or any designee thereof of complying with arbitrage
rebate requirements; the costs to the City, CFD No. 04-1 or any designee thereof of
complying with City, CFD No. 04-1 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. 04-1 or any designee thereof related to an appeal of
the Special Tax; the costs associated with the release offunds from any escrow account; and
the City's annual administration fees and third party expenses. Administrative Expenses
shall also include amounts estimated or advanced by the City or CFD No. 04-1 for any other
administrative purposes of CFD No. 04-1, including attorney's fees and other costs related to
commencing and pursuing to completion any foreclosure as a result of delinquent Special
Taxes.
"Affordable Units" means residential dwelling units located on one or more Assessor's
Parcels of Residential Property that are subject to deed restrictions, resale restrictions, and/or
regulatory agreements recorded in favor of the City providing for affordable housing.
City of Tustin - TustinLegacy/John Laing Homes
CFD No. 04-1
July 8, 2004
Page 1
Affordable Units shall be further classified as Moderate Income, Lower Income, or Very
Low Income (as defined in Sections 50079.5, 50093, and 50105 of the California Health And
Safety Code), with the total number of Affordable Units not to exceed 63 Moderate Income
units, 22 Lower Income units and 33 Very Low Income units. Affordable Units constructed
within the CFD shall be designated by the CFD Administrator in the chronological order in
which the building permits for such units are issued. However, if the total number of
Affordable Units constructed in anyone of the three affordable income categories exceeds
the amount stated above for such income category, then the units exceeding such total shall
be not be considered Affordable Units and shall be assigned to a Land Use Class based on
the type of use and Residential Floor Area for each such unit.
"Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an
assigned Assessor's Parcel number.
"Assessor's Parcel Map" means an official map of the County Assessor of the County
designating parcels by Assessor's Parcel number.
"Authorized Services" means those authorized services proposed to be financed by CFD
No. 04-1 pursuant to the Act and listed in Exhibit A to this Rate and Method of
Apportionment.
"Bonds" means any bonds or other debt (as defined in Section 53317(d) of the Act),
whether in one or more series, issued by CFD No. 04-1 under the Act.
"CFD Administrator" means an official of the City, or designee thereof, responsible for
determining the Special Tax Requirement for Facilities and the Special Tax Requirement for
Services and providing for the levy and collection of the Special Taxes.
"CFD No. 04-1" means City of Tustin Community Facilities District No. 04-1 (Tustin
Legacy/John Laing Homes).
"City" means the City of Tustin.
"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 detennined 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 ofCFD No. 04-
1.
"County" means the County of Orange.
"Developed Property" means, for each Fiscal Year, all Taxable Property, exclusive of
Taxable Public Property and Taxable Property Owner Association Property, for which the
City of Tustin - TustinLegacylJoltn Laing Homes
CFD No. 04-1
July 8, 2004
Page 2
Final Subdivison was recorded on or prior to January 1 of the prior Fiscal Year and a
building pennit for new construction was issued after January 1,2004 and prior to May 1 of
the prior Fiscal Year.
"Final Subdivision" means a subdivision of property by recordation of a final 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 pennits may be issued
without further subdivision.
"Fiscal Year" means the period starting July 1 and ending on 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 detennined in accordance
with Section C below, that can be levied in any Fiscal Year on any Assessor's Parcel.
"Maximum Special Tax B" means the maximum Special Tax B determined in accordance
with Section C below, that can be levied in any Fiscal Year on any Assessor's Parcel.
"Non-Residential Property" means all Assessor's Parcels of Developed Property for which
a building pennit pennitting the construction of one or more non-residential units or
facilities has been issued by the City.
"Outstanding Bonds" means all Bonds which are deemed to be outstanding under the
Indenture.
"Property Owner Association Property" means, for each Fiscal Year, any property within
the boundaries of CFD No. 04-1 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 ofthe actual Special Tax A
levy to the Maximum 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 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 tenn "Proportionately" may similarly be applied to other categories of
Taxable Property as listed in Section E below.
City a/Tustin - TustinLegacy/Jahn Laing Homes
CFD No. 04-1
July 8, 2004
Page 3
"Public Property" means property within the boundaries of CFD No. 04-1 owned by,
ilTevocably 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 ofa residential structure, not including any carport, walkway, garage, overhang,
patio, enclosed patio, or similar area. The detennination of Residential Floor Area for an
Assessor's Parcel shall be made by reference to the building pennit(s) issued for such
Assessor's Parcel.
"Residential Property" means all Assessor's Parcels of Developed Property for which a
building pennit pennitting the construction thereon of one or more residential dwelling units
has been issued by the City.
"Single Family Attached Property" means all Assessor's Parcels of Residential Property
for which building pennits have been issued for attached residential units.
"Single Family Detached Property" means all Assessor's Parcels of Residential Property
for which building pennits have been issued for detached residential units.
"Special Tax" means the Special Tax A and/or Special Tax B, as applicable.
"Special Tax A" means the special tax to be levied in each Fiscal Year on each Assessor's
Parcel of Taxable Property within CFD No. 04-1 to fund the Special Tax Requirement for
Facilities.
"Special Tax A Buydown" means a mandatory bond principal buydown payment made by
the property owner to reduce the amount of Outstanding Bonds to compensate for a loss of
Special Tax A revenues resulting from the construction off ewer residential dwelling units,
smaller residential dwelling units, or a modified amount of non-residential Acreage, as
determined in accordance with Section D below.
"Special Tax B" means the special tax to be levied in each Fiscal Year on each Assessor's
Parcel of Taxable Property within CFD No. 04-1 to fund the Special Tax Requirement for
Services.
"Special Tax Requirement for Facilities" means that amount required in any Fiscal Year
for CFD No. 04-1 to: (i) pay 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 on the Bonds due in the calendar year
commencing in such Fiscal Year; (iii) pay Administrative Expenses; (iv) pay any amounts
required to establish or replenish any reserve funds for all Outstanding Bonds; (v) pay for
reasonably anticipated Special Tax A delinquencies based on the delinquency rate for the
Special Tax A levy in the previous Fiscal Year; less (vi) a credit for funds available to
City o/Tustin - TustinLegacy/Jolm Laing Homes
CFD No. 04-1
July 8, 2004
Page 4
reduce the annual Special Tax A levy, as determined by the CFD Administrator pursuant to
the Indenture.
"Special Tax Requirement for Services" means that amount required in any Fiscal Year
for CFD No. 04-1 to (i) pay directly for Authorized Services due in the calendar year
commencing in such Fiscal Year; (ii) pay a proportionate share of Administrative Expenses;
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 ofCalifomia.
"Taxable Property" means all of the Assessor's Parcels within the boundaries ofCFD No.
04-1 which are not exempt from the Special Tax pursuant to law or Section F 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 F 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 F below.
"Trustee" means the trustee or fiscal agent under the Indenture.
"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 within CFD No. 04-1 shall be classified as Developed
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.
Residential Property shall be assigned to Land Use Classes 1 through 13 as listed in Table 1
below based on the type of use and the Residential Floor Area for each unit. Non-
Residential Property shall be assigned to Land Use Class 14.
City of Tustin - TustinLegacy/John Laing Homes
CFD No. 04-1
July 8, 2004
Page 5
C.
MAXIMUM SPECIAL TAX
1.
Developed Property
(a).
Maximum Special Tax
The Maximum Special Tax A and the Maximum Special Tax B for each
Land Use Class is shown below in Table 1. The Maximum Special Tax for
each Assessor's Parcel classified as Developed Property shall be the
Maximum Special Tax A plus Maximum Special Tax B.
TABLE 1
Maximum Special Tax for Developed Property in
City of Tustin Community Facilities District No. 04-1
(Tustin Legacy/John Laing Homes)
Fiscal Year 2004-2005
Single Family Detached Property => 3,350 s.f. $3,410 per unit $822 per unit
2 Single Family Detached Property 3,150 - 3,349 s.£. $3,182 per unit $822 per unit
3 Single Family Detached Property 2,950-3,149 s.f. $3,039 per unit $822 per unit
4 Single Family Detached Property 2,650 - 2,949 s.£. $2,988 per unit $822 per unit
5 Single Family Detached Property 2,350 - 2,649 s.£. $2,704 per unit $822 per unit
6 Single Family Detached Property 1,900 - 2,349 s.£. $2,453 per unit $822 per unit
7 Single Family Detached Property 1,500 - 1,899 s.£. $2,254 per unit $822 per unit
8 Single Family Detached Property < 1,500 s.£. $1,969 per unit $822 per unit
9 Single Family Attached Property => 1,700 s.f. $2,112 per unit $822 per unit
10 Single Family Attached Property < 1,700 s.f. $1,719 per unit $822 per unit
11 Affordable Units (Moderate Income) NA $378 per unit $822 per unit
12 Affordable Units (Lower Income) NA $209 per unit $209 per unit
13 Affordable Units (Very Low Income) NA $53 per unit $53 per unit
14 Non-Residential Property NA $26,322 per Acre $10,639 per Acre
City of Tustin - TustinLegacy/John Laing Homes
CFD No. 04-1
July 8, 2004
Page 6
(b).
Increase in the Maximum Special Tax
The Fiscal Year 2004-2005 Maximum Special Tax A, identified in Table 1
above, shall not be subject to change and shall therefore remain the same in
every Fiscal Year. On each July 1, commencing on July 1, 2005, the
Maximum Special Tax B listed in Table 1 above shaH be increased based on
the percentage change in the Consumer Price Index, with a maximum annual
increase of six percent (6%) and a minimum annual increase of two percent
(2%) per Fiscal Year.
(c).
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 swn of the Maximum Special Taxes for all
Land Use Classes located on that Assessor's Parcel.
2.
Undeveloped Property, Taxable Public Property, and Taxable Property Owner
Association Property
(a).
Maximum Special Tax A
The Fiscal Year 2004-2005 Maximum Special Tax A for Undeveloped
Property, Taxable Public Property, and Taxable Property Owner Association
Property shall be $29,414 per Acre.
(b).
Maximum Special Tax B
Undeveloped Property, Taxable Public Property and Taxable Property Owner
Association Property shall not be subject to a Maximum Special Tax B.
(c).
Increase in the Maximum Special Tax A
The Fiscal Year 2004-2005 Maximum Special Tax A shaH not be subject to
change and shall therefore remain the same in every Fiscal Year.
D.
SPECIAL TAX A BUYDOWN
All of the requirements of this Section D, which describes the need for a Special Tax A
Buydown that may result from a change in development as detennined pursuant to this
Section D, shaH only apply after the sale of Bonds by CFD No. 04-1. The following
definitions apply to this Section D:
"Certificate of Satisfaction of Special Tax A Buydown" means a certificate from the CFD
Administrator stating that the property described in such certificate has sufficiently met the
Special Tax A Buydown Requirement for such property as calculated under this Section D.
City of Tustin - TustinLegacy/John Laing Homes
CFD No. 04-1
July 8, 2004
Page 7
"Letter of Compliance" means a letter from the CFD Administrator allowing the issuance
of building permits based on the prior submittal of a request for Letter of Compliance by a
property owner.
"Special Tax A Buydown Requirement" means the total amount of Special Tax A
Buydown necessary to be prepaid to permit the issuance of building pennits listed in a
request for Letter of Compliance, as calculated under this Section D.
"Update Property" means an Assessor's Parcel of Undeveloped Property for which a
building permit has been issued. For purposes of all calculations in this Section D, Update
Property shall be taxed as if it were already Developed Property during the current Fiscal
Year.
1.
Request for Letter of Compliance
The CFD Administrator must submit a Letter of Compliance to the City for a specific
Assessor's Parcel or lot prior to the issuance by the City of a building permit for the
construction of any residential and/or non-residential development on that Assessor's Parcel
or lot. If a Letter of Compliance has not yet been issued, and a property owner wishes to
request a building permit for an Assessor's Parcel or lot, the property owner must first
request a Letter of Compliance from the CFD Administrator. The request from the property
owner shall contain a list of all building pennits cuITently being requested, the Assessor's
Parcels or tract and lot numbers on which the construction is to take place, and the
Residential Floor Area (for each residential dwelling unit) or the Acreage (for each non-
residential parcel) associated with each building pennit.
2.
Issuance of Letter of Compliance
Upon the receipt of a request for Letter of Compliance, the CFD Administrator shall assign
each building permit identified in such request to Land Use Classes 1 through 14 as listed in
Table 2 below, based on the type of use and the Residential Floor Area identified for each
such building permit. If the CFD Administrator detennines (i) that the number of building
pennits requested for each Land Use Class, plus those building pennits previously issued for
each Land Use Class, will not cause the total number of residential units or non-residential
Acreage within any such Land Use Class to exceed the number of units or Acreage for such
Land Use Class identified in Table 2 below, and (ii) that the total number of residential
dwelling units anticipated to be constructed pursuant to the current development plan for
CFD No. 04-1 will not be less than 565, then a Letter of Compliance shall be submitted to
the City by the CFD Administrator approving the issuance ofthe requested building pennits.
This Letter of Compliance shall be submitted by the CFD Administrator within ten days of
the submittal of the request for Letter of Compliance by the property owner. However,
should (i) the building pennits requested, plus those previously issued, cause the total
number of residential units or non-residential Acreage within any such Land Use Class to
exceed the number of units or non-residential Acreage for such Land Use Class identified in
Table 2 below, or (ii) the CFD Administrator determine that changes in the development
plan may cause a decrease in the number of residential dwelling units within CFD No. 04-1
City of Tustin - TustinLegacy/John Laing Homes
CFD No. 04-1
July 8, 2004
Page 8
to below 565 dwelling units, then a letter of Compliance will not be issued and the CFD
Administrator will be directed to determine if a Special Tax A Buydown shall be required.
TABLE 2
Expected Dwelling Units per Land Use Class and Non-Residential Acreage
City of Tustin Community Facilities District No. 04-1
(Tustin Legacy/John Laing Homes)
1 Single Family Detached Property => 3,350 s.f. 27 units
2 Single Family Detached Property 3,150-3,349 s.f. 50 units
3 Single Family Detached Property 2,950 - 3,149 s.f. 23 units
4 Single Family Detached Property 2,650 - 2,949 s.f. 19 units
5 Single Family Detached Property 2,350 - 2,649 s.f. 1 I units
6 Single Family Detached Property 1,900 - 2,349 s.f. 19 units
7 Single Family Detached Property 1,500 - 1,899 s.f. 0 units
8 Single Family Detached Property < 1,500 s.f. 126 units
9 Single Family Attached Property => 1,700 s.f. 63 units
10 Single Family Attached Property < 1,700 s.f. 109 units
11 Affordable Units (Moderate Income) NA 63 units
12 Affordable Units (Lower Income) NA 22 units
13 Affordable Units (Very Low Income) NA 33 units
14 Non-Residential Property NA 0 Acres
3. Calculation of Special Tax A Buydown
If a Special Tax A Buydown calculation is required as a result of item 2, above, the
CFD Administrator shall review the current development plan for CFD No. 04-1 in
consultation with the current property owners for all remaining Undeveloped
Property in CFD No. 04-1, and shall prepare an updated version of Table 2
identifying the revised number of units or non-residential Acreage anticipated within
each Land Use Class. The CFD Administrator shall not be responsible for any
delays in preparing the updated Table 2 that results ITom a refusal on the part of one
or more current property owners of Undeveloped Property to provide information on
their future development.
City of Tustin - TustinLegacy/John Laing Homes
CFD No. 04-1
July 8, 2004
Page 9
The CFD Administrator shall then review the updated Table 2 and detennine the
Special Tax A Buydown Requirement, if any, to be applied to the property identified
in the request for Letter of Compliance to assure the CFD's ability to collect special
taxes equal to 110% debt service coverage on the Outstanding Bonds, plus the cost of
annual CFD administration. The calculations shall be undertaken by the CFD
Administrator as follows:
Step 1. Compute the sum of the Maximum Special Tax A to be levied on all
Developed Property and Update Property within CFD No. 04-1, plus the
sum of the Maximum Special Tax A to be levied on all future development as
identified in the current development plan as detennined by the CFD
Administrator in consultation with the property owner.
Step 2. Determine the amount of Special Tax A required to provide 110% debt
service coverage on the Outstanding Bonds, plus any other costs associated
with the Special Tax Requirement for Facilities.
Step 3. If the total sum computed pursuant to step 1 is greater than or equal to the
amount computed pursuant to step 2, then no Special Tax A Buydown will be
required and a Letter of Compliance shall immediately be issued by the CFD
Administrator for all of the building permits currently being requested. If the
total sum computed pursuant to step 1 is less than the amount computed
pursuant to step 2, then continue to step 4.
Step 4. Detennine the Maximum Special Tax A shortfall by subtracting the total sum
computed purs,!lant to step 1 from the amount computed pursuant to step 2.
Divide this Maximum Special Tax A shortfall by the amount computed
pursuant to step 2.
Step 5.The Special Tax A Buydown Requirement shall be calculated using the
prepayment fonnula described in Section 1.1, with the following exceptions:
(i) skip Paragraphs 1, 2 and 3, and begin with Paragraph 4; (ii) the Bond
Redemption Amount in Paragraph 4 of the prepayment formula described in
Section 1.1 shall equal the product ofthe quotient computed pursuant to step
4 above times the Previously Issued Bonds, as defined in Section 1.1; (iii) the
Capitalized Interest Credit described in Paragraph 12 of Section 1.1 shall be
$0; and (iv) any payments of the Special Tax A Buydown (less
Administrative Fees and Expenses) shall be disbursed pursuant to the
Indenture.
The Special Tax A Buydown computed under step 5 shall be billed directly to the
property owner of each Assessor's Parcel identified in the request for Letter of
Compliance and shall be due within 30 days of the billing date. If the Special Tax A
Buydown is not paid within 45 days of the billing date, a delinquent penalty of 10
percent shall be added to the Special Tax A Buydown. Upon receipt of the Special
Tax A Buydown payment, the CFD Administrator shall issue a Letter of Compliance
and a Certificate of Satisfaction of Special Tax A Buydown for the subject property.
City o/Tustin - TustinLegacylJohn Laing Homes
CFD No. 04-1
July 8, 2004
Page 10
4.
Costs and Expenses Related to Implementation of Special Tax A Buydown
The property owner of each Assessor's Parcel identified in the request for Letter of
Compliance shall pay all costs of the CFD Administrator or other consultants
required to review the application for building permits, calculate the Special Tax A
Buydown, issue Letters of Compliance or any other actions required under Section
D. Such payments shall be due 30 days after receipt of invoice by such property
owner. A deposit may be required by the CFD Administrator prior to undertaking
work related to the Special Tax A Buydown.
METHOD OF APPORTIONMENT OF THE SPECIAL TAX
E.
1.
Special Tax A
Commencing with Fiscal Year 2004-2005 and for each following Fiscal Year, the Council
shall determine the Special Tax Requirement for Facilities and shall levy the Special Tax A
until the total Special Tax A levy equals the Special Tax Requirement for Facilities. The
Special Tax A shall be levied each Fiscal Year as follows:
First: The Special Tax A shall be levied Proportionately on each Assessor's Parcel of
Developed Property at up to 100% of the applicable Maximum Special Tax A;
Second: If additional monies are needed to satisfy the Special Tax Requirement for
Facilities after the first step has been completed, the Special Tax A shaH be levied
Proportionately on each Assessor's Parcel of Undeveloped Property at up to 100% of the
Maximum Special Tax A for Undeveloped Property;
Third: If additional monies are needed to satisfy the Special Tax Requirement for Facilities
after the first two steps have been completed, then the 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;
Fourth: If additional monies are needed to satisfy the Special Tax Requirement for Facilities
after the first three steps have been completed, then the Special Tax A shaH 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 2004-2005 and for each foHowing Fiscal Year, the Council
shall levy the Special Tax B until the total Special Tax B levy equals the Special Tax
Requirement for Services. The Special Tax B shaH be levied Proportionately each Fiscal
Year on each Assessor's Parcel of Developed Property at up to 100% of the applicable
Maximum Special Tax B as needed to satisfy the Special Tax Requirement for Services.
City of Tustin - TustinLegacy/John Laing Homes
CFD No. 04-1
July 8, 2004
Page 11
F.
EXEMPTIONS
1.
Special Tax A
No Special Tax A shall be levied on up to 1.4 Acres of Public Property and up to 27.1 Acres
of Property Owner Association Property. Tax-exempt status will be assigned by the CFD
Administrator in the chronological order in which property becomes Public Property or
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.
Public Property or Property Owner Association Property that is not exempt from the Special
Tax A under this section shall be subject to the levy ofthe Special Tax A and shall be taxed
Proportionately as part of the third and fourth steps in Section E.l.
2.
Special Tax B
No Special Tax B shall be levied on Undeveloped Property, Public Property and Property
Owner Association Property.
G.
APPEALS AND INTERPRET A TI 0 NS
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 eITor may submit a written appeal to CFD
No. 04-1. The CFD Administrator shall review the appeal and if the CFD Administrator
concurs, the amount of the Special Tax levied shall be appropriately modified.
The Council may interpret this Rate and Method of Apportionment of Special Tax for
purposes of clarifying any ambiguity and make detenninations relative to the amount of
Administrative Expenses and any landowner or resident appeals. Any decision of the
Council shall be final and binding as to all persons.
H.
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 detennine, including
direct billing ofthe affected property owners. The Special Tax A Buydown shall be directly
billed to the property owner at the time such Special Tax is being levied.
I.
PREP A YMENT OF SPECIAL TAX A
The following definitions apply to this Section I:
"Buildout" means, for CFD No. 04-1, that all expected building permits have been issued.
City of Tustin - TustinLegacy/John Laing Homes
CFD No. 04-1
July 8,2004
Page 12
"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
The obligation of an Assessor's Parcel to pay the Special Tax A may be prepaid and
permanently satisfied as described herein only after the sale of Bonds by CFD No.
04-1; provided that a prepayment may be made only for Assessor's Parcels of
Developed Property or Undeveloped Property for which a building permit has been
issued, and 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
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 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 Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
equals Prepayment Amount
Total:
As of the proposed date of prepayment, the Special Tax A Prepayment Amount
(defined below) shall be calculated as follows:
Para2raph No.:
1.
Confirm that no Special Tax delinquencies apply to such Assessor's Parcel.
2.
For Assessor's Parcels of Developed Property, 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 Undeveloped Property (for which a building permit has been
issued) to be prepaid, 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 such building pennit.
City of Tustin - TustinLegacy/John Laing Homes
CFDNo.04-1
July 8, 2004
Page 13
3.
Divide the Maximum Special Tax A computed pursuant to paragraph 2 by the total
estimated Maximum Special Tax A for CFD No. 04-1 based on the Developed
Property Special Tax A which could be levied in the current Fiscal Year on all
expected development through Buildout, excluding any Assessor's Parcels the
Special Tax A for 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-1O0%), if any, on the
Previously Issued Bonds to be redeemed (the "Redemption Premium").
6.
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.
7.
Determine the Special Tax A levied on the Assessor's Parcel in the current Fiscal
Year which has not yet been paid.
8.
Compute the minimum amount the CFD Administrator reasonably expects to derive
from the reinvestment of the Special Tax A Prepayment Amount less the
Administrative Fees and Expenses from the date of prepayment until the redemption
date for the Previously Issued Bonds to be redeemed with the prepayment.
9.
Add the amounts computed pursuant to paragraphs 6 and 7 and subtract the amount
computed pursuant to paragraph 8 (the "Defeasance Amount").
10.
Verify the administrative fees and expenses ofCFD No. 04-1, including the costs of
computation of the prepayment, the costs to invest the prepayment proceeds, the
costs of redeeming Bonds, and the costs of recording any notices to evidence the
prepayment and the redemption (the "Administrative Fees and Expenses").
11
Ifreserve 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.
12.
If any capitalized interest for the Previously Issued Bonds will not have been
expended at the time of 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").
City of Tustin - TustinLegacylJohn Laing Homes
CFDNo.04-1
July 8, 2004
Page 14
13.
The Special Tax A Prepayment is equal to the sum of the amounts computed
pursuant to paragraphs 4, 5, 9 and 10, less the amounts computed pursuant to
paragraphs 11 and 12 (the "Prepayment Amount").
14.
From the Prepayment Amount, the amounts computed pursuant to paragraphs 4, 5, 9,
11 and 12 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 10 shall be retained by CFD
No. 04-1.
The Special Tax A Prepayment Amount may be sufficient to redeem other than a $5,000
increment of 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 Bonds or to make debt service payments.
As a result of the payment ofthe current Fiscal Year's Special Tax A levy as determined
under paragraph 7 (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 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. 04-1 (after excluding 1.4 Acres of Public
Property and 27.1 Acres of Property Owner Association Property as set forth in Section F)
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.
2.
Prepayment in Part
The Special Tax A on an Assessor's Parcel of Developed Property or an Assessor's Parcel of
Undeveloped Property for which a building pennit 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 fonnula:
PP = PE X F.
These terms have the following meaning:
PP=
PE=
F=
the partial prepayment
the Special Tax A Prepayment Amount calculated according to Section 1.1
the percentage, expressed as a decimal, by which the owner ofthe Assessor's Parcel
is partially prepaying the Special Tax A.
City o/Tustin - TustinLegacy/John Laing Homes
CFD No. 04-1
July 8, 2004
Page 15
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 ofCFD No. 04-1 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 E.!.
J.
TERM OF SPECIAL TAX
The Special Tax A shall be levied for a period not to exceed forty years cOlmnencing with
Fiscal Year 2004-2005. The Special Tax B shall be levied as long as necessary to meet the
Special Tax Requirement for Services.
K: \Clients2\ Tustin. Cit\TustinM CASV ohnLaing\RMA \Laing- 6F inaJ.doc
City of Tustin - TustinLegacy/John Laing Homes
CFDNo.04-1
July 8, 2004
Page 16
EXHIBIT A
AUTHORIZED SERVICES
The types of services proposed to be financed by CFD No. 04-1 are police protection services, fire
protection services, ambulance and paramedic services, recreation program services, maintenance of
parks, parkways and open space and flood and storm protection services.
CLERK'S CERTIFICATE
STATE OF CALIFORNIA
COUNTY OF ORANGE
CITY OF TUSTIN
)
)
)
I, Pamela Stoker, City Clerk of the City of Tustin, California hereby certify that the
foregoing is a full, true and correct copy of a Resolution duly adopted at a regular
meeting of the City Council of said City duly and regularly held at the regular meeting
place thereof on July 19, 2004, of which meeting all of the members of said City Council
had due notice and at which a majority thereof were present; and that at said meeting
said Resolution was adopted by the following vote:
AYES:
COUNCIL MEMBERS:
NOES:
COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
An agenda of said meeting was posted at least 72 hours before said meeting at
300 Centennial Way, Tustin, California, a location freely accessible to members of the
public, and a brief general description of said Resolution appeared on said agenda.
I further certify that I have carefully compared the same with the original minutes
of said meeting on file and of record in my office; that the foregoing Resolution is a full,
true and correct copy of the original Resolution adopted at said meeting and entered in
said minutes; and that said Resolution has not been amended, modified or rescinded
since the date of its adoption, and the same is now in full force and effect.
Dated:
,2004
Pamela Stoker, City Clerk
RESOLUTION NO. 04-68
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, DEEMING IT NECESSARY TO INCUR BONDED
INDEBTEDNESS WITHIN CITY OF TUSTIN COMMUNITY FACILITIES
DISTRICT NO. 04-1 (TUSTIN LEGACY/JOHN LAING HOMES)
WHEREAS, on June 7, 2004, the City Council (the "City Council") of the City of
Tustin (the "City"), pursuant to the Mello-Roos Community Facilities Act of 1982 (the
"Act"), adopted a resolution entitled "A Resolution of the City Council of the City of
Tustin, California of Intention to Establish a Community Facilities District and to
Authorize the Levy of Special Taxes" stating its intention to form City of Tustin
Community Facilities District No. 04-1 (Tustin Legacy/John Laing Homes) (the
"Community Facilities District") and to authorize the levy of special taxes within the
Community Facilities District to finance certain public facilities and services;
WHEREAS, on June 7, 2004, the City Council also adopted a resolution entitled
"A Resolution of the City Council of the City of Tustin, California to Incur Bonded
Indebtedness of the Proposed City of Tustin Community Facilities District No. 04-1
(Tustin Legacy/John Laing Homes)" (the "Resolution to Incur Bonded Indebtedness")
declaring the necessity for incurring bonded indebtedness and setting the date for a
public hearing to be held on the proposed debt issue;
WHEREAS, pursuant to the Resolution to Incur Bonded Indebtedness, notice of
said public hearing was published in the Tustin News, a newspaper of general
circulation published in the area of the Community Facilities District, in accordance with
the Act;
WHEREAS, on this date, the City Council opened, conducted and closed said
public hearing;
WHEREAS, at said public hearing, any person interested, including persons
owning property within the area and desiring to appear and present any matters
material to the questions set forth in the Resolution to Incur Bonded Indebtedness
appeared and presented such matters;
WHEREAS, no oral or written protests against the proposed debt issue were
made or filed at or before said public hearing;
WHEREAS, on this date, the City Council adopted a resolution entitled "A
Resolution of the City Council of the City of Tustin of Formation of City of Tustin
Community Facilities District No. 04-1 (Tustin Legacy/John Laing Homes), Authorizing
the Levy of a Special Tax within the District and Establishing an Appropriations Limit for
the District" (the "Resolution of Formation");
WHEREAS, the City Clerk of the City (the "City Clerk") is the election official that
will conduct the special election on the proposition to incur bonded indebtedness for the
Community Facilities District;
WHEREAS, there has been filed with the City Clerk a letter from the Registration
and Elections Department of the County of Orange indicating that 12 or more persons
have not been registered to vote within the territory of the Community Facilities District
for each of the 90 days preceding the close of said public hearing;
WHEREAS, there has been filed with the City Clerk consents and waivers of all
of the landowners of record in the Community Facilities District waiving any time limit
specified by Section 53326 of the Act and any requirement pertaining to the conduct of
said special election, including any time limit or requirement applicable to an election
pursuant to Article 5, Chapter 2.5, Division 3, Title 5 of the Act (commencing with
Section 53345 of the Act), consenting to the holding of said special election on July 19,
2004 and waiving any impartial analysis, arguments or rebuttals, as set forth in
Sections 53326 and 53327 of the Act; and
WHEREAS, the City Clerk has concurred in said waivers and has concurred in
holding said special election on July 19, 2004;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tustin
as follows:
Section 1. The foregoing recitals are true and correct.
Section 2. The City Council deems it necessary to incur the bonded
indebtedness.
Section 3. The bonded indebtedness will be incurred for the purpose of financing
the costs of the Facilities (as defined in the Resolution of Formation), including all costs
and estimated costs incidental to, or connected with, the accomplishment of such
purpose.
Section 4. In accordance with the previous determination of the City Council, the
whole of the Community Facilities District will pay for the bonded indebtedness.
Section 5. The maximum amount of debt to be incurred is $15,000,000.
Section 6. The maximum term the bonds to be issued shall run before maturity is
40 years.
Section 7. The maximum annual rate of interest to be paid shall not exceed the
maximum interest rate permitted by applicable law at the time of sale of the bonds,
payable semiannually or at such times as the City Councilor its designee shall
determine, the actual rate or rates and times of payment of such interest to be
determined by the City Councilor its designee at the time or times of sale of the bonds.
Section 8. The proposition to incur the bonded indebtedness will be submitted to
the voters.
2
Section 9. The City Council hereby finds and determines that 12 or more
persons have not been registered to vote within the territory of the Community Facilities
District for each of the 90 days preceding the close of the public hearings held by the
City Council on the proposed debt issue for the Community Facilities District.
Accordingly, pursuant to Section 53326 of the Act, the vote shall be by the landowners
of the Community Facilities District and each landowner who is the owner of record as
of the close of said public hearings, or the authorized representative thereof, shall have
one vote for each acre or portion of an acre that he or she owns within the Community
Facilities District.
Section 10. The City Council hereby finds and determines that the qualified
electors of the Community Facilities District have unanimously consented (a) to the
waiver of any time limit specified by Section 53326 of the Act and any requirement
pertaining to the conduct of said election, including any time limit or requirement
applicable to an election pursuant to Article 5, Chapter 2.5, Division 3, Title 5 of the Act
(commencing with Section 53345 of the Act), and (b) to the holding of said election on
July 19, 2004. The City Council herby finds and determines that the City Clerk has
concurred in said waivers and has concurred in holding said election on July 19, 2004.
Section 11. The date of the special community facilities district election (which
shall be consolidated with the special district election to levy a special tax within the
Community Facilities District) at which time the proposition shall be submitted to the
voters is July 19, 2004.
Section 12. The election is to be conducted by mail ballot. The mailed ballots
are required to be received in the office of the City Clerk no later than 8:00 p.m. on July
19, 2004; provided, however, that if all of the qualified electors have voted prior to such
time, the election may be closed.
Section 13. The officers, employees and agents of the City are hereby
authorized and directed to take all actions and do all things which they, or any of them,
may deem necessary or desirable to accomplish the purposes of this Resolution and
not inconsistent with the provisions hereof.
Section 14. This Resolution shall take effect immediately upon its adoption.
PASSED and ADOPTED at a regular meeting of the City Council of the City of
Tustin held on July 19, 2004.
TONY KAWASHIMA
Mayor
3
ATTEST:
PAMELA STOKER
City Clerk
4
CLERK'S CERTIFICATE
STATE OF CALIFORNIA
COUNTY OF ORANGE
CITY OF TUSTIN
)
)
)
I, Pamela Stoker, City Clerk of the City of Tustin, California hereby certify that the
foregoing is a full, true and correct copy of a Resolution duly adopted at a regular
meeting of the City Council of said City duly and regularly held at the regular meeting
place thereof on July 19, 2004, of which meeting all of the members of said City Council
had due notice and at which a majority thereof were present; and that at said meeting
said Resolution was adopted by the following vote:
AYES:
COUNCIL MEMBERS:
NOES:
COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
An agenda of said meeting was posted at least 72 hours before said meeting at
300 Centennial Way, Tustin, California, a location freely accessible to members of the
public, and a brief general description of said Resolution appeared on said agenda.
I further certify that I have carefully compared the same with the original minutes
of said meeting on file and of record in my office; that the foregoing Resolution is a full,
true and correct copy of the original Resolution adopted at said meeting and entered in
said minutes; and that said Resolution has not been amended, modified or rescinded
since the date of its adoption, and the same is now in full force and effect.
Dated:
,2004
Pamela Stoker, City Clerk
RESOLUTION NO. 04-69
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, CALLING SPECIAL ELECTION FOR CITY OF TUSTIN
COMMUNITY FACILITIES DISTRICT NO. 04-1 (TUSTIN
LEGACY/JOHN LAING HOMES)
WHEREAS, on this date, the City Council (the "City Council") of the City of Tustin
(the "City") adopted, pursuant to the Mello-Roos Community Facilities Act of 1982 (the
"Act"), a resolution entitled "A Resolution of the City Council of the City of Tustin,
California of Formation of City of Tustin Community Facilities District No. 04-1 (Tustin
Legacy/John Laing Homes), Authorizing the Levy of a Special Tax within the District
and Establishing an Appropriations Limit for the District" (the "Resolution of Formation"),
establishing City of Tustin Community Facilities District No. 04-1 (Tustin Legacy/John
Laing Homes) (the "Community Facilities District"), authorizing the levy of a special tax
within the Community Facilities District and establishing an appropriations limit for the
Community Facilities District;
WHEREAS, on this date, the City Council also adopted a resolution entitled "A
Resolution of the City Council of the City of Tustin Deeming It Necessary to Incur
Bonded Indebtedness within City of Tustin Community Facilities District No. 04-1 (Tustin
Legacy/John Laing Homes)," deeming it necessary to incur bonded indebtedness in the
maximum amount of $15,000,000;
WHEREAS, pursuant to the provisions of said resolutions, the propositions to
incur bonded indebtedness, to levy a special tax within the Community Facilities District
and to establish an appropriations limit for the Community Facilities District are to be
submitted to the qualified electors of the Community Facilities District as required by the
Act;
WHEREAS, the City Council desires to designate the City Clerk of the City (the
"City Clerk") as the election official for the special election provided for herein;
WHEREAS, there has been filed with the City Clerk a letter from the Registration
and Elections Department of the County of Orange indicating that 12 or more persons
have not been registered to vote within the territory of the Community Facilities District for
each of the 90 days preceding the close of the public hearings on the establishment of the
Community Facilities District and the proposed debt issue for the Community Facilities
District;
WHEREAS, there has been filed with the City Clerk consents and waivers of all of
the landowners of record in the Community Facilities District waiving any time limit
specified by Section 53326 of the Act and any requirement pertaining to the conduct of
said special election, including any time limit or requirement applicable to an election
pursuant to Article 5, Chapter 2.5, Division 3, Title 5 of the Act (commencing with
Section 53345 of the Act), consenting to the holding of said special election on July 19,
2004 and waiving any impartial analysis, arguments or rebuttals, as set forth in
Sections 53326 and 53327 of the Act; and
WHEREAS, the City Clerk has concurred in said waivers and has concurred in
holding said special election on July 19, 2004;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tustin
as follows:
Section 1. Pursuant to Sections 53351, 53326 and 53325.7 of the Act, the
propositions to incur bonded indebtedness, to levy a special tax within the Community
Facilities District and to establish an appropriations limit for the Community Facilities
District shall be submitted to the qualified electors of the Community Facilities District at
an election called therefor as provided below.
Section 2. The City Clerk is hereby designated as the official to conduct said
election.
Section 3. As authorized by Section 53353.5 of the Act, the propositions to incur
bonded indebtedness, to levy a special tax within the Community Facilities District and
to establish an appropriations limit for the Community Facilities District shall be
combined into one ballot proposition.
Section 4. The City Council hereby finds and determines that 12 or more
persons have not been registered to vote within the territory of the Community Facilities
District for each of the 90 days preceding the close of the public hearings heretofore
held by the City Council on the establishment of the Community Facilities District and
the proposed debt issue for the Community Facilities District. Accordingly, pursuant to
Section 53326 of the Act, the vote shall be by the landowners of the Community
Facilities District and each landowner who is the owner of record as of the close of said
public hearings, or the authorized representative thereof, shall have one vote for each
acre or portion of an acre that he or she owns within the Community Facilities District.
Section 5. The City Council hereby finds and determines that the qualified
electors of the Community Facilities District have unanimously consented (a) to the
waiver of any time limit specified by Section 53326 of the Act and any requirement
pertaining to the conduct of said election, including any time limit or requirement
applicable to an election pursuant to Article 5, Chapter 2.5, Division 3, Title 5 of the Act
(commencing with Section 53345 of the Act), (b) to the holding of said election on July
19,2004, and (c) to the waiver of any impartial analysis, arguments or rebuttals, as set
forth in Sections 53326 and 53327 of the Act. The City Council herby finds and
determines that the City Clerk has concurred in said waivers and has concurred in
holding said election on July 19, 2004.
Section 6. The City Council hereby calls a special election to submit to the
qualified electors of the Community Facilities District the combined proposition to incur
bonded indebtedness, to levy a special tax within the Community Facilities District and
to establish an appropriations limit for the Community Facilities District, which election
shall be held at 300 Centennial Way, Tustin, California, on July 19, 2004. The City
Council has caused to be provided to the City Clerk, as the official to conduct said
election, the Resolution of Formation, a certified map of sufficient scale and clarity to
2
show the boundaries of the Community Facilities District, and a sufficient description to
allow the City Clerk to determine the boundaries of the Community Facilities District.
Section 7. The voted ballots shall be returned to the City Clerk not later than
8:00 p.m. on July 19, 2004; provided, however, that if all of the qualified electors have
voted prior to such time, the election may be closed with the concurrence of the City
Clerk.
Section 8. Pursuant to Section 53327 of the Act, the election shall be conducted
by mail or hand-delivered ballot pursuant to Section 4000 of the California Elections
Code. The City Council hereby finds that paragraphs (a), (b), (c) (1) and (c)(3) of said
Section 4000 are applicable to this special election.
Section 9. The form of the ballot for said election is attached hereto as Exhibit A
and by this reference incorporated herein, and such form of ballot is hereby approved.
The City Clerk shall cause to be delivered to each of the qualified electors of the
Community Facilities District a ballot in said form. Each ballot shall indicate the number
of votes to be voted by the respective landowner to which it pertains.
Section 10. Each ballot shall be accompanied by all supplies and written
instructions necessary for the use and return of the ballot. The identification envelope
for return of the ballot shall be enclosed with the ballot, shall have the return postage
prepaid, and shall contain: (a) the name and address of the landowner, (b) a
declaration, under penalty of perjury, stating that the voter is the owner of record or the
authorized representative of the landowner entitled to vote and is the person whose
name appears on the identification envelope, (c) the printed name, signature and
address of the voter, (d) the date of signing and place of execution of the declaration
described in clause (b) above, and (e) a notice that the envelope contains an official
ballot and is to be opened only by the canvassing board.
Section 11. Analysis and arguments with respect to the ballot proposition are
hereby waived, as provided in Section 53327 of the Act.
Section 12. The City Clerk shall accept the ballots of the qualified electors in the
office of the City Clerk at 300 Centennial Way, Tustin, California, to and including 8:00
p.m. on July 19, 2004, whether said ballots be personally delivered or received by mail.
The City Clerk shall have available ballots which may be marked at said location on the
election day by said qualified electors.
Section 13. The City Council hereby determines that the facilities financed by the
Community Facilities District are necessary to meet increased demands placed upon
local agencies as a result of development occurring in the Community Facilities District.
Section 14. The specific purposes of the bonded indebtedness proposed to be
incurred is the financing of the Facilities (as defined in the Resolution of Formation),
including all costs and estimated costs incidental to, or connected with, the
accomplishment of such purpose, and the proceeds of such bonded indebtedness shall
be applied only to such specific purposes.
3
Section 15. Upon approval of the proposition to incur bonded indebtedness, and
the sale of any bonds evidencing such indebtedness, the City Council shall take such
action as may be necessary to cause to be established an account for deposit of the
proceeds of sale of the bonds. For so long as any proceeds of the bonds remain
unexpended, the Finance Director of the City shall cause to be filed with the City
Council, no later than January 1 of each year, a report stating (a) the amount of bond
proceeds received and expended during the preceding year, and (b) the status of any
project funded or to be funded from bond proceeds. Said report may relate to the
calendar year, fiscal year, or other appropriate annual period, as the Finance Director of
the City shall determine, and may be incorporated into the annual budget, audit, or other
appropriate routine report to the City Council.
Section 16. The officers, employees and agents of the City are hereby
authorized and directed to take all actions and do all things which they, or any of them,
may deem necessary or desirable to accomplish the purposes of this Resolution and
not inconsistent with the provisions hereof.
Section 17. This Resolution shall take effect immediately upon its adoption.
PASSED and ADOPTED at a regular meeting of the City Council of the City of
Tustin held on July 19, 2004.
TONY KAWASHIMA
Mayor
ATTEST:
PAMELA STOKER
City Clerk
4
EXHIBIT A
OFFICIAL BALLOT
CITY OF TUSTIN
July 19, 2004
SPECIAL ELECTION
This ballot is for a special, landowner election. The number of votes to be voted
pursuant to this ballot is -'
INSTRUCTIONS TO VOTERS:
To vote on the proposition, mark a cross (+) or (X) in the voting square after the
word "YES" or after the word "NO". All distinguishing marks or erasures are forbidden
and make the ballot void. If you wrongly mark, tear, or deface this ballot, return it to the
City Clerk of the City of Tustin and obtain another.
CITY OF TUSTIN
COMMUNITY FACILITIES DISTRICT NO. 04-1
(TUSTIN LEGACY/JOHN LAING HOMES)
PROPOSITION: Shall City of Tustin Community Facilities District
No. 04-1 (Tustin Legacy/John Laing Homes) (the "Community
Facilities District") be authorized to incur bonded indebtedness in
a maximum amount of not to exceed $15,000,000 and levy a
special tax in order to finance certain facilities and services and
shall the annual appropriations limit of the Community Facilities
District be established in the amount of $15,000,000, all as
specified in the Resolution entitled "A Resolution of the City
Council of the City of Tustin of Formation of City of Tustin
Community Facilities District No. 04-1 (Tustin Legacy/John
Laing Homes), Authorizing the Levy of a Special Tax within the
District and Establishing an Appropriations Limit for the District"
and the Resolution entitled "A Resolution of the City Council of
the City of Tustin Deeming It Necessary to Incur Bonded
Indebtedness within City of Tustin Community Facilities District
No. 04-1 (Tustin Legacy/John Laing Homes)," adopted by the
City Council of the City of Tustin on July 19, 2004?
Yes: D
No: 0
A-I
CLERK'S CERTIFICATE
STATE OF CALIFORNIA
COUNTY OF ORANGE
CITY OF TUSTIN
)
)
)
I, Pamela Stoker, City Clerk of the City of Tustin, California hereby certify that the
foregoing is a full, true and correct copy of a Resolution duly adopted at a regular
meeting of the City Council of said City duly and regularly held at the regular meeting
place thereof on July 19, 2004, of which meeting all of the members of said City Council
had due notice and at which a majority thereof were present; and that at said meeting
said Resolution was adopted by the following vote:
AYES:
NOES:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
An agenda of said meeting was posted at least 72 hours before said meeting at
300 Centennial Way, Tustin, California, a location freely accessible to members of the
public, and a brief general description of said Resolution appeared on said agenda.
I further certify that I have carefully compared the same with the original minutes
of said meeting on file and of record in my office; that the foregoing Resolution is a full,
true and correct copy of the original Resolution adopted at said meeting and entered in
said minutes; and that said Resolution has not been amended, modified or rescinded
since the date of its adoption, and the same is now in full force and effect.
Dated:
,2004
Pamela Stoker, City Clerk
RESOLUTION NO. 04-70
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, DECLARING RESULTS OF SPECIAL ELECTION AND
DIRECTING RECORDING OF NOTICE OF SPECIAL TAX LIEN
WHEREAS, on July 19, 2004, the City Council (the "City Council") of the City of ,
Tustin (the "City") adopted, pursuant to the Mello-Roos Community Facilities Act of
1982 (the "Act"), a resolution entitled "A Resolution of the City Council of the City of
Tustin, California Calling Special Election for City of Tustin Community Facilities District
No. 04-1 (Tustin Legacy/John Laing Homes)" (the "Resolution Calling Election"), calling
for a special election of the qualified electors within City of Tustin Community Facilities
District No. 04-1 (Tustin Legacy/John Laing Homes) (the "Community Facilities
District");
WHEREAS, pursuant to the terms of the Resolution Calling Election and the
provisions of the Act, the special election was held on July 19, 2004; and
WHEREAS, the City Clerk of the City (the "City Clerk") has certified the canvass
of the returns of the election and has filed a Canvass and Statement of Results of
Election (the "Canvass"), a copy of which is attached hereto as Exhibit A.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tustin
as follows:
Section 1. The City Council has received, reviewed and hereby accepts the
Canvass.
Section 2. The City Council hereby finds and declares that the ballot proposition
submitted to the qualified electors of the Community Facilities District pursuant to the
Resolution Calling Election has been passed and approved by such electors in
accordance with Section 53328(a), Section 53355 and Section 53325.7 of the Act.
Section 3. The City Clerk is hereby directed to execute and cause to be
recorded in the office of the County Recorder of Orange County a notice of special tax
lien in the form required by the Act, said recording to occur no later than 15 days
following adoption by the City Council of this Resolution.
Section 4. The officers, employees and agents of the City are hereby authorized
and directed to take all actions and do all things which they, or any of them, may deem
necessary or desirable to accomplish the purposes of this Resolution and not
inconsistent with the provisions hereof.
Section 5. This Resolution shall take effect immediately upon its adoption.
PASSED and ADOPTED at a regular meeting of the City Council of the City of
Tustin held on July 19, 2004.
TONY KAWASHIMA
Mayor
ATTEST:
PAMELA STOKER
City Clerk
2
EXHIBIT A
CANVASS AND STATEMENT OF RESULTS OF ELECTION
CITY OF TUSTIN
COMMUNITY FACILITIES DISTRICT NO. 04-1
(TUSTIN LEGACY/JOHN LAING HOMES)
I hereby certify that on July 19, 2004, I canvassed the returns of the special
election held on July 19, 2004 for City of Tustin Community Facilities District No. 04-1
(Tustin Legacy/John Laing Homes), that the total number of ballots cast in said
Community Facilities District and the total number of votes cast for and against the
proposition are as follows and that the totals as shown for and against the proposition
are true and correct:
Qualified
Landowner
Votes
Votes
Cast
YES
NO
City of Tustin Community Facilities
District No. 04-1 (Tustin
Legacy/John Laing Homes)
Special Election, July 19, 2004
PROPOSITION: Shall City of Tustin Community Facilities District No. 04-1 (Tustin
Legacy/John Laing Homes) (the "Community Facilities District") be authorized to incur
bonded indebtedness in a maximum amount of not to exceed $15,000,000 and levy a
special tax in order to finance certain facilities and services and shall the annual
appropriations limit of the Community Facilities District be established in the amount of
$15,000,000, all as specified in the Resolution entitled "A Resolution of the City Council of
the City of Tustin of Formation of City of Tustin Community Facilities District No. 04-1
(Tustin Legacy/John Laing Homes), Authorizing the Levy of a Special Tax within the
District and Establishing an Appropriations Limit for the District" and the Resolution
entitled "A Resolution of the City Council of the City of Tustin Deeming It Necessary to
Incur Bonded Indebtedness within City of Tustin Community Facilities District No. 04-1
(Tustin Legacy/John Laing Homes)," adopted by the City Council of the City of Tustin on
July 19, 2004?
IN WITNESS WHEREOF, I have hereunto set my hand this 19th day of July,
2004.
Pamela Stoker, City Clerk
of the City of Tustin
CLERK'S CERTIFICATE
CITY OF TUSTIN
)
)
)
STATE OF CALIFORNIA
COUNTY OF ORANGE
I, Pamela Stoker, City Clerk of the City of Tustin, California hereby certify that the
foregoing is a full, true and correct copy of a Resolution duly adopted at a regular
meeting of the City Council of said City duly and regularly held at the regular meeting
place thereof on July 19, 2004, of which meeting all of the members of said City Council
had due notice and at which a majority thereof were present; and that at said meeting
said Resolution was adopted by the following vote:
AYES:
NOES:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
An agenda of said meeting was posted at least 72 hours before said meeting at
300 Centennial Way, Tustin, California, a location freely accessible to members of the
public, and a brief general description of said Resolution appeared on said agenda.
I further certify that I have carefully compared the same with the original minutes
of said meeting on file and of record in my office; that the foregoing Resolution is a full,
true and correct copy of the original Resolution adopted at said meeting and entered in
said minutes; and that said Resolution has not been amended, modified or rescinded
since the date of its adoption, and the same is now in full force and effect.
Dated:
,2004
Pamela Stoker, City Clerk
ORDINANCE NO. 1286
AN ORDINANCE OF THE CITY OF TUSTIN, CALIFORNIA, LEVYING
SPECIAL TAXES WITHIN CITY OF TUSTIN COMMUNITY FACILITIES
DISTRICT NO. 04-1 (TUSTIN LEGACY/JOHN LAING HOMES)
WHEREAS, on June 7, 2004, the City Council (the "City Council") of the City of
Tustin, pursuant to the Mello-Roos Community Facilities Act of 1982 (the "Act"),
adopted a resolution entitled "A Resolution of the City Council of the City of Tustin,
California of Intention to Establish a Community Facilities District and to Authorize the
Levy of Special Taxes" stating its intention to establish City of Tustin Community
Facilities District No. 04-1 (Tustin Legacy/John Laing Homes) (the "Community Facilities
District") and to finance certain public facilities (the "Facilities") and services (the
"Services") and setting the date for a public hearing to be held on the establishment of
the Community Facilities District;
WHEREAS, on July 19, 2004, the City Council held a noticed public hearing on
the establishment of the Community Facilities District, as required by the Act;
WHEREAS, subsequent to the close of said hearing, on July 19, 2004, the City
Council adopted resolutions entitled "A Resolution of the City Council of the City of
Tustin, California, of Formation of City of Tustin Community Facilities District No. 04-1
(Tustin Legacy/John Laing Homes), Authorizing the Levy of a Special Tax within the
District and Establishing an Appropriations Limit for the District" (the "Resolution of
Formation"), "A Resolution of the City Council of the City of Tustin, California, Deeming
it Necessary to Incur Bonded Indebtedness within City of Tustin Community Facilities
District No. 04-1 (Tustin Legacy/John Laing Homes)" and "A Resolution of the City
Council of the City of Tustin, California, Calling Special Election for City of Tustin
Community Facilities District No. 04-1 (Tustin Legacy/John Laing Homes)," which
resolutions established the Community Facilities District, authorized the levy of a special
tax within the Community Facilities District and called an election within the Community
Facilities District on the proposition of incurring indebtedness, levying a special tax
within the Community Facilities District and establishing an appropriations limit for the
Community Facilities District, respectively; and
WHEREAS, on July 19, 2004, an election was held in which the qualified electors
of the Community Facilities District approved said proposition by more than the two-
thirds vote required by the Act;
THE CITY COUNCIL OF THE CITY OF TUSTIN DOES ORDAIN AS FOLLOWS:
Section 1. The City Council hereby authorizes and levies special taxes within the
Community Facilities District pursuant to Sections 53328 and 53340 of the Act, at the
rate and in accordance with the method of apportionment set forth in Exhibit A to the
Resolution of Formation (the "Rate and Method of Apportionment"). The special taxes
are hereby levied commencing in fiscal year 2004-05 and in each fiscal year thereafter
until the last fiscal year in which such special taxes are authorized to be levied pursuant
to the Rate and Method of Apportionment.
Section 2. The City Council may, in accordance with subdivision (b) of Section
53340 of the Act, provide, by resolution, for the levy of the special tax in future tax years
at the same rate or at a lower rate than the rate provided by this Ordinance. In no event
shall the special tax be levied on any parcel within the Community Facilities District in
excess of the maximum tax specified therefor in the Rate and Method of Apportionment.
Section 3. The special tax shall be levied on all of the parcels in the Community
Facilities District, unless exempted by law or by the Rate and Method of Apportionment.
Section 4. The proceeds of the special tax shall only be used to pay, in whole or
in part, the cost of providing the Facilities and Services and incidental expenses
pursuant to the Act.
Section 5. The special tax shall be collected in the same manner as ordinary ad
valorem property taxes are collected and shall be subject to the same penalties and the
same procedure, sale and lien priority in the case of delinquency as is provided for ad
valorem taxes, unless another procedure is adopted by the City Council.
Section 6. If for any reason any portion of this Ordinance is found to be invalid,
or if the special tax is found inapplicable to any particular parcel within the Community
Facilities District, by a court of competent jurisdiction, the balance of this Ordinance and
the application of the special tax to the remaining parcels within the Community
Facilities District shall not be affected.
Section 7. This Ordinance shall take effect and shall be in force 30 days after the
date of its adoption and prior to the expiration of 15 days from the passage thereof shall
be published at least once in the Tustin News, a newspaper of general circulation,
printed and published in the City of Tustin, State of California, together with the names
of the City Council members voting for and against the same.
PASSED and ADOPTED this 2nd day of August 2004, by the City Council of the
City of Tustin, California.
TONY KAWASHIMA
Mayor
ATTEST:
PAMELA STOKER
City Clerk
2
APPROVED AS TO FORM:
City Attorney
3
CLERK'S CERTIFICATE
STATE OF CALIFORNIA
COUNTY OF ORANGE
CITY OF TUSTIN
)
)
)
I, Pamela Stoker, City Clerk of the City of Tustin, California hereby certify that the
foregoing is a full, true and correct copy of the Ordinance introduced at a regular
meeting of the City Council of the City of Tustin duly held on July 19, 2004, of which
meeting all of the members of said City Council had due notice and at which a majority
thereof were present; and was finally passed and adopted not less than five days
thereafter on , 2004, by the following vote:
AYES:
NOES:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
An agenda of said meeting was posted at least 72 hours before said meeting at
300 Centennial Way, Tustin, California, a location freely accessible to members of the
public, and a brief general description of said Ordinance appeared on said agenda.
I further certify that I have carefully compared the same with the original minutes
of said meeting on file and of record in my office; that the foregoing Ordinance is a full,
true and correct copy of the original Ordinance adopted at said meeting and entered in
said minutes; and that said Ordinance has not been amended, modified or rescinded
since the date of its adoption, and the same is now in full force and effect.
,2004
Dated:
Pamela Stoker, City Clerk
4
CITY OF TUSTIN
COMMUNITY FACILITIES DISTRICT
No. 04-1
(TUSTIN LEGACY/JOHN LAING HOMES)
July 8, 2004
COMMUNITY FACILITIES DISTRICT REpORT
MELLO-Roos COMMUNITY FACILITIES ACT OF 1982
CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT No. 04-1
(TUSTIN LEGACY/JOHN LAING HOMES)
Prepared for
Prepared bv
CITY OF TUSTIN
300 Centennial Way
Tustin, CA 92780
DAVID TAUSSIG & ASSOCIATES, INC.
1301 Dove Street, Suite 600
Newport Beach, CA 92660
(949) 955-1500
Section
I.
II.
III.
IV.
V.
VI.
VII.
TABLE OF CONTENTS
Paf!e
INTRO D U CTI 0 N ..............................................................................................................1
PROJECT DESCRIPTION ..............................................................................................2
DESCRIPTION AND ESTIMATED COST OF PROPOSED FACILITIES AND
S ER VI C ES ........... ...... .... .............. ................ ............. ...... ....... ........... ............... ...................3
A. Description of Proposed Facilities and Services............................................................3
B. Estimated Cost of Proposed Facilities and Services......................................................4
BONDED INDEBTEDNESS AND INCIDENTAL EXPENSES ...................................5
A. Projected Bond Sales ........,............................................................................................5
B. Incidental Bond Issuance Expenses to be Included in the Proposed Bonded
Indebtedness............ ............. ... .......... .................. ........................ ................. .... ..............5
C. Incidental Expenses to be Included in the Annual Levy of Special Taxes....................5
RATE AND METHOD OF APPORTIONMENT ..........................................................6
A. Explanation for Special Tax Apportionment.................................................................6
B. Maximum Special Tax A........................ .................... ............. ...................... ........... .....7
C. Maximum Special Tax B ...............................................................................................7
D. Special Tax A Buydown .............................. ............... ............ ............. ..........................7
E. Accuracy ofInfonnation................................................................................................8
BOUNDARIES OF COMMUNITY FACILITIES DISTRICT.....................................9
GENERAL TERMS AND CONDITIONS ....................................................................10
A. Substitution of Facilities and Services.... ...."............. ......"....... ...................................1 0
B. Appeals .............".... .......... ......................". .............. ............................ ........................1 0
C. Prepayment of Special Tax .............................. .................. ......,................... ................1 0
EXHIBITS
Exhibit A
Exhibit B
Exhibit C
Exhibit D
Rate and Method of Apportionment
Maximum Special Tax A For Developed Property
Maximum Special Tax B For Developed Property
Proposed Boundary Map
I.
INTRODUCTION
WHEREAS, the City Council of the City of Tustin (hereinafter referred to as the "Council") did,
pursuant to the provision 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 (hereinafter referred to
as the "Act"), and specifically Section 53321.5 thereof, expressly order the filing of a written
"Report" with the legislative body of the proposed community facilities district. This community
facilities district being City of Tustin Community Facilities District No. 04-1 (Tustin Legacy/John
Laing Homes) shall hereinafter be referred to as:
"CFD No. 04-1 "; and,
WHEREAS, a Resolution of the City Council of the City of Tustin of Intention to Establish a
Community Facilities District and to Authorize the Levy of Special Taxes (hereinafter referred to as
the "Resolution ofIntention") did direct that said Report generally contain the following:
1.
A brief description of the public facilities and services by type which will be required to
adequately meet the needs ofCFD No. 04-1; and
2.
An estimate ofthe cost of providing the public facilities and services, and an estimate of the
fair and reasonable cost of the public facilities proposed to be purchased as completed
facilities and of the incidental expenses proposed to be paid.
WHEREAS, the Finance Director of the City of Tustin has caused the Report to be prepared by
David Taussig & Associates, Inc. pursuant to the provisions of the Resolution of Intention.
NOW, THEREFORE, David Taussig & Associates, Inc. does hereby submit the Report.
City of Tustin CFD No. 04-1
(Tustin Legacy/John Laing Homes)
July 8, 2004
Page 1
II.
PROJECT DESCRIPTION
CFD No. 04-1 encompasses approximately 68.5 gross acres ofland in the City of Tustin. Of this
acreage, approximately 40.0 acres are expected to be developed into uses subject to a Mello-Roos
special tax levy. At buildout, it is currently expected that CFD No. 04-1 will contain approximately
565 residential dwelling units.
City o/Tustin CFD No. 04-1
(Tustin Legacy/John Laing Homes)
July 8, 2004
Page 2
III.
DESCRIPTION AND ESTIMATED COST OF PROPOSED
FACILITIES AND SERVICES
A community facilities district may provide for the purchase, construction, expansion or
rehabilitation of any real or tangible property, including public facilities and infrastructure
improvements, with an estimated usefu11ife of five (5) years or longer, which is necessary to meet
increased demands placed upon local agencies as a result of development or rehabilitation occurring
within the community facilities district. In addition, a community facilities district may pay in full
all amounts necessary to eliminate any fixed special assessment liens or to pay, repay, or defease any
obligation to pay for any indebtedness secured by any tax, fee, charge, or assessment levied within
the area of the community facilities district. A community facilities district may also provide for
financing of certain public services to meet these demands.
A.
DescriDtion of ProDosed Facilities and Services
Facilities
The types of facilities proposed to be financed by CFD No. 04-1 are street improvements,
including grading, paving, curbs and gutters, sidewalks, street signalization and signage,
street lights and parkway and landscaping related thereto, stonn drains, public utilities,
public parks and recreation facilities, public library facilities, fire protection facilities and
equipment and land, rights-of-way and easements necessary for any of such facilities.
Services
The types of services proposed to be financed by CFD No. 04-1 are police protection
services, fire protection services, ambulance and paramedic services, recreation program
services, maintenance of parks, parkways and open space and flood and stonn protection
serVIces.
The preceding facilities and services are all facilities and services which the legislative body
creating CFD No. 04-1 is authorized to own, construct, or finance, and which are required to
adequately meet the needs of CFD No. 04-1. Because the actual facilities and services
necessary to serve development within CFD No. 04-1 may differ from those currently
anticipated, CFD No. 04-1 reserves the right to modify the actual facilities and services
proposed herein to the extent CFD No. 04-1 deems necessary, in its sole discretion to meet
those needs. The Special Taxes! required to pay for the construction, acquisition, or
financing of said facilities, or for the provision of services, will be apportioned as described
in the Rate and Method of Apportionment for CFD No. 04-1.
IPlease note that all capitalized tenns used herein, unless otherwise indicated, shall have the meanings defined in the
Rate and Method of Apportionment.
City of Tustin CFD No. 04-1
(Tustin Legacy/John Laing Homes)
July 8, 2004
Page 3
B.
Estimated Cost of Proposed Facilities and Services
CFD No. 04-1 is expected to issue one (1) Bond series to finance the purchase, construction,
expansion, improvement, or rehabilitation of the proposed facilities. The total amount of
construction proceeds to be generated from the Bonds is projected to be approximately $9.7
million. This amount is an estimate and subject to change, depending on the interest rates of
the Bonds, the costs of issuance of the Bonds, and other factors to be determined at the time
the Bonds are issued.
In addition, CFD No. 04-1 is expected to finance the annual costs to provide police
protection services, fire protection services, ambulance and paramedic services, recreation
program services, maintenance of parks, parkways and open space and flood and storm
protection services. The Special Taxes within CFD No. 04-1 have been established to
finance services of approximately $425,066 per year.
City o/Tustin CFD No. 04-1
(Tustin Legacy/John Laing Homes)
July 8, 2004
Page 4
IV.
BONDED INDEBTEDNESS AND INCIDENTAL EXPENSES
A.
Projected Bond Sales
The maximum authorized bonded indebtedness for CFD No. 04-1 is $15,000,000. It is
anticipated that CFD No. 04-1 will sell one bond issue with a tenTI 000 years in the fall of
2004.
B.
Incidental Bond Issuance ExDenses to be Included in the ProDosed Bonded
Indebtedness
Pursuant to Section 53345.3 of the Act, bonded indebtedness may include all costs and
estimated costs incidental to, or connected with, the accomplishment of the purpose for
which the proposed debt is to be incurred, including, but not limited to, the estimated cots of
construction or acquisition of buildings, or both; acquisition ofland, rights-of-way, water,
sewer, or other capacity or connection fees; lease payments for school facilities, satisfaction
of contractual obligations relating to expenses or the advancement of funds for expenses
existing at the time the bonds are issued, architectural, engineering, inspection, legal, fiscal,
and financial consultant fees; bond and other reserve funds; discount fees; interest on any
bonds of the district estimated to be due and payable within two years of issuance of the
bonds; election costs; and all costs of issuance of the bonds, including, but not limited to,
fees for bond counsel, costs of obtaining credit ratings, bond insurance premiums, fees for
letters of credit, and other credit enhancement costs, and printing costs. For the bonds
proposed to be issued by CFD No. 04-1, the reserve fund is estimated at approximately 7.75
percent of the principal amount of the bonds, and capitalized interest is estimated at -
approximately 6.19 percent of the principal amount of the bonds. Incidental bond issuance
expenses of 5.00 percent are estimated for the bonds.
c.
Incidental ExDenses to be Included in the Annual Levv of SDecial Taxes
Pursuant to Section 53340 of the Act, the proceeds of any special tax may only be used to
pay, in whole or part, the cost of providing public facilities, services and incidental expenses.
As defined by the Act, incidental expenses include, but are not limited to, the cost of
planning and designing public facilities to be financed, including the cost of environmental
evaluations of those facilities; the costs associated with the creation of the district, issuance
of bonds, detenTIination of the amount of taxes, collection of taxes, payment of taxes, or
costs otherwise incurred in order to carry out the authorized purposes of the district; any
other expenses incidental to the construction, completion, and inspection ofthe authorized
work; and the costs associated with the retirement of existing bonded indebtedness. While
the actual cost of administering CFD No. 04-1 may vary, it is anticipated that the amount of
special taxes which can be collected will be sufficient to fund at least $30,000 in annual
administrative expenses.
City o/Tustin CFD No. 04-1
(Tustin Legacy/John Laing Homes)
July 8, 2004
Page 5
v.
RATE AND METHOD OF APPORTIONMENT
All of the property located within CFD No. 04-1, unless exempted by law or by the Rate and Method
of Apportionment, shall be taxed for the purpose of providing necessary facilities and services to
serve CFD No. 04-1. 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 parcels of real
property, the cost of making facilities or services available to each parcel or other reasonable basis
as determined by the legislative body," although the special tax may not be apportioned on an ad
valorem basis pursuant to Article XIIIA of the California Constitution.
As shown in Exhibit A, the adopted Rate and Method of Apportionment provides information
sufficient to allow each property owner within CFD No. 04-1 to estimate the maximum annual
Special Tax he or she will be required to pay. Sections A through D below, provide additional
information on the Rate and Method of Apportionment for CFD No. 04-1.
A.
Explanation for Special Tax Apportionment
When a community facilities district is formed, a special tax may be levied on each parcel of
taxable property within the CFD to pay for the construction, acquisition and rehabilitation of
public facilities, to pay for authorized services or to repay bonded indebtedness or other
related expenses incurred by CFD No. 04-1. This special tax must be apportioned in a
reasonable manner; however, the tax may not be apportioned on an ad valorem basis.
When more than one type of land use is present within a community facilities district,
several criteria may be considered when apportioninga special tax. Generally, criteria based
on building square footage, acreage, and land uses are selected, and categories based on such
criteria are established to differentiate between parcels of property. These categories are
reflective ofthe proposed land use types within that community facilities district. Specific
special tax levels are assigned to each land use class, with all parcels within a land use class
assigned the same special tax rate.
The Act does not require that special taxes be apportioned to individual parcels based on
benefit received. However, in order to insure fairness and equity, benefit principles have
been incorporated in establishing the Special Tax rates for CFD No. 04-1.
The major assumption inherent in the Special Tax rates set forth in the Rate and Method of
Apportionment is that the level of benefit received from the proposed public facilities and
services is a function of land use and/or product type.
For example, in measuring average weekday vehicle trip-ends, the Institute of Transportation
Engineer's Trip Generation manual identifies land use as the primary determinant of trip-end
magnitude. Larger single family dwellings typically generate a greater number of trip-ends
than do smaller residential homes, and therefore, will tend to receive more benefit from road
grading, road landscaping and road improvements.
City of Tustin CFD No. 04-1
(Tustin Legacy/John Laing Homes)
July 8, 2004
Page 6
Drainage and flood control requirements generally vary with the amount of impervious
ground cover per parcel. It follows that larger lots have more impervious ground cover
which will create more drainage flows than that of smaller lots.
In addition, larger buildings typically generate a greater number of "person hours," or the
number of hours per week that residents associated with a specific type of land use could
potentially use park facilities or require the need for the proposed public services.
Therefore, Special Tax rates have been established for residential and non-residential land
use classes for CFD No. 04-1. In addition, in order to insure fairness, the Special Tax rates
are uniformly applied within each land use class. The Special Tax for a parcel of Residential
Property in CFD No. 04-1 will vary directly with the type of unit and the amount of square
footage of Residential Floor Area on such parcel. The Special Tax for Non-Residential
Property in CFD No. 04-1 will be based on the acreage of the parcel
Based on the types of public facilities and services that are proposed for CFD No. 04-1 and
the factors described above, the Special Taxes assigned to Developed Properties are
generally proportionate to the relative benefits received by them, and, accordingly, the
Special Taxes in CFD No. 04-1 can be considered fair and reasonable.
B.
Maximum Special Tax A
Exhibit B lists the Fiscal Year 2004-2005 Maximum Special Tax A that may be levied
against Developed Property within CFD No. 04-1 to fund the Special Tax Requirement for
Facilities. In addition, the Fiscal Year 2004-2005 Maximum Special Tax A for Undeveloped
Property, Taxable Public Property, and Taxable Property Owner Association Property shall
be $29,414 per Acre. The Fiscal Year 2004-2005 Maximum Special Tax A shall not be
subject to change and shall therefore remain the same in every Fiscal Year.
c.
Maximum Special Tax B
Exhibit C lists the Fiscal Year 2004-2005 Maximum Special Tax B that may be levied
against Developed Property within CFD No. 04-1 to fund the Special Tax Requirement for
Services. On each July 1, commencing on July 1,2005, the Maximum Special Tax B shall
be increased based on the percentage change in the Consumer Price Index, with a maximum
annual increase of six percent (6%) and a minimum annual increase of two percent (2%) per
Fiscal Year. Undeveloped Property, Taxable Public Property and Taxable Property Owner
Association Property shall not be subject to a Maximum Special Tax B.
D.
Special Tax A Buvdown
Development will be monitored within CFD No. 04-1. Should development fall below the
level specified in the Rate and Method of Apportionment for CFD No. 04-1, a Special Tax A
Buydown will be required. The Special Tax A Buydown required for CFD No. 04-1 will be
computed pursuant to Section D of the Rate and Method of Apportionment.
City of Tustin CFD No. 04-1
(Tustin Legacy/John Laing Homes)
July 8, 2004
Page 7
E.
Accuracv of Information
In order to establish the Special Taxes for CFD No. 04-1 as set forth in the Rate and Method
of Apportionment, David Taussig and Associates, Inc. has relied on information including,
but not limited to absorption, land-use types, building square footage, and net taxable
acreage which were provided to David Taussig and Associates, Inc., by others. David
Taussig and Associates, Inc. has not independently verified such data and disclaims
responsibility for the impact of inaccurate data provided by others, if any, on the Rate and
Method of Apportionment for CFD No. 04-1, including the inability to meet the financial
obligations ofCFD No. 04-1.
City of Tustin CFD No. 04-1
(Tustin Legacy/John Laing Homes)
July 8, 2004
Page 8
VI.
BOUNDARIES OF COMMUNITY FACILITIES DISTRICT
The boundaries of CFD No. 04-1 include all land on which the Special Taxes may be levied. A
reduced scale map showing the boundaries ofCFD No. 04-1 is provided as Exhibit D. A full scale
map is on file with the City Clerk ofthe City of Tustin and was recorded with the County Recorder
of the County of Orange in Book 88 of Maps of Assessment and Community Facilities Districts at
page 49 and as Instrument Number 2004000549842.
City of Tustin CFD No. 04-1
(Tustin Legacy/John Laing Homes)
July 8, 2004
Page 9
VII. GENERAL TERMS AND CONDITIONS
Á.
Substitution of Facilities and Services
The descriptions ofthe facilities and services, as set forth herein, are general in their nature.
The City of Tustin will determine the final nature and location of services. The City of
Tustin may modify the facilities and services provided and any such substitution shall not be
a change or modification in the proceedings as long as the services provide a function
substantially similar to that as set forth in this Report.
B.
Anneals
Pursuant to the Rate and Method of Apportionment, 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. 04-1. As appropriate, a representative of
the City of Tustin shall review the appeal and if the representative of the City of Tustin
concurs, the amount of the Special Tax levied shall be appropriately modified.
The City Council may interpret the Rate and Method of Apportionment for CFD No. 04-1
for purposes of clarifying any ambiguity and make determinations relative to the amount of
Administrative Expenses and any landowner or resident appeals. Any decision of the City
Council shall be final and binding as to all persons.
c.
Prenavment of Snecial Tax
The Special Tax A applicable to an Assessor's Parcel in CFD No. 04-1 may be prepaid
according to the prepayment provisions in the Rate and Method of Apportionment. The
Special Tax B may not be prepaid.
K: \Clients2\ Tustin. Cit\ TustinMCAS\JohnLaing\CFD Report2 .DOC
City of Tustin CFD No. 04-1
(Tustin Legacy/John Laing Homes)
July 8, 2004
Page 10
EXHIBIT A
CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 04-1
(TUSTIN LEGACY/JOHN LAING HOMES)
RATE AND METHOD OF APPORTIONMENT
RATE AND METHOD OF APPORTIONMENT FOR
CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 04-1
(TUSTIN LEGACY/JOHN LAING HOMES)
A Special Tax shall be levied on all Assessor's Parcels in City of Tustin Community Facilities
District No. 04-1 (Tustin Legacy/John Laing Homes) ("CFD No. 04-1 ") and collected each Fiscal
Year commencing in Fiscal Year 2004-2005, in an amount detennined through the application ofthe
Rate and Method of Apportionment as described below. All of the real property in CFD No. 04-1,
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 tenus 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 an Assessor's Parcel Map, the land area
shown on the applicable final map, 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 Community Facilities Act of 1982, 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. 04-1: 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 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 to the City, CFD No. 04-1 or any designee thereof of complying with arbitrage
rebate requirements; the costs to the City, CFD No. 04-1 or any designee thereof of
complying with City, CFD No. 04-1 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. 04-1 or any designee thereof related to an appeal of
the Special Tax; the costs associated with the release of funds from any escrow account; and
the City's annual administration fees and third party expenses. Administrative Expenses
shall also include amounts estimated or advanced by the City or CFD No. 04-1 for any other
administrative pUtposes ofCFD No. 04-1, including attorney's fees and other costs related to
commencing and pursuing to completion any foreclosure as a result of delinquent Special
Taxes.
"Affordable Units" means residential dwelling units located on one or more Assessor's
Parcels of Residential Property that are subject to deed restrictions, resale restrictions, and/or
regulatory agreements recorded in favor of the City providing for affordable housing.
City of Tustin - TustinLegacy/John Laing Homes
CFD No. 04-1
July 8, 2004
Page 1
Affordable Units shall be further classified as Moderate Income, Lower Income, or Very
Low Income (as defined in Sections 50079.5, 50093, and 50105 ofthe CalifomiaHealth And
Safety Code), with the total number of Affordable Units not to exceed 63 Moderate Income
units, 22 Lower Income units and 33 Very Low Income units. Affordable Units constructed
within the CFD shall be designated by the CFD Administrator in the chronological order in
which the building permits for such units are issued. However, if the total number of
Affordable Units constructed in anyone ofthe three affordable income categories exceeds
the amount stated above for such income category, then the units exceeding such total shall
be not be considered Affordable Units and shall be assigned to a Land Use Class based on
the type of use and Residential Floor Area for each such unit.
"Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an
assigned Assessor's Parcel number.
"Assessor's Parcel Map" means an official map of the County Assessor of the County
designating parcels by Assessor's Parcel number.
"Authorized Services" means those authorized services proposed to be financed by CFD
No. 04-1 pursuant to the Act and listed in Exhibit A to this Rate and Method of
Apportionment.
"Bonds" means any bonds or other debt (as defined in Section 53317(d) of the Act),
whether in one or more series, issued by CFD No. 04-1 under the Act.
"CFD Administrator" means an official of the City, or designee thereof, responsible for
determining the Special Tax Requirement for Facilities and the Special Tax Requirement for
Services and providing for the levy and collection of the Special Taxes.
"CFD No. 04-1" means City of Tustin Community Facilities District No. 04-1 (Tustin
Legacy/John Laing Homes).
"City" means the City of Tustin.
"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 ofthe City, acting as the legislative body ofCFD No. 04-
1.
"County" means the County of Orange.
"Developed Property" means, for each Fiscal Year, all Taxable Property, exclusive of
Taxable Public Property and Taxable Property Owner Association Property, for which the
City of Tustin - TustinLegacy/John Laing Homes
CFD No. 04-1
July 8, 2004
Page 2
Final Subdivison was recorded on or prior to January 1 of the prior Fiscal Year and a
building pennit for new construction was issued after January 1,2004 and prior to May 1 of
the prior Fiscal Year.
"Final Subdivision" means a subdivision of property by recordation of a final 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 starting July 1 and ending on 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 trom 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 below, that can be levied in any Fiscal Year on any Assessor's Parcel.
"Maximum Special Tax B" means the maximum Special Tax B determined in accordance
with Section C below, that can be levied in any Fiscal Year on any Assessor's Parcel.
"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 by the City.
"Outstanding Bonds" means all Bonds which are deemed to be outstanding under the
Indenture.
"Property Owner Association Property" means, for each Fiscal Year, any property within
the boundaries ofCFD No. 04-1 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 Maximum 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 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 E below.
City of Tustin - TustinLegacy/John Laing Homes
CFD No. 04-1
July 8, 2004
Page 3
"Public Property" means property within the boundaries of CFD No. 04-1 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 issued by the City.
"Single Family Attached Property" means all Assessor's Parcels of Residential Property
for which building permits have been issued for attached residential units.
"Single Family Detached Property" means all Assessor's Parcels of Residential Property
for which building pennits have been issued for detached residential units.
"Special Tax" means the Special Tax A and/or Special Tax B, as applicable.
"Special Tax A" means the special tax to be levied in each Fiscal Year on each Assessor's
Parcel of Taxable Property within CFD No. 04-1 to fund the Special Tax Requirement for
Facilities.
"Special Tax A Buydown" means a mandatory bond principal buydown payment made by
the property owner to reduce the amount of Outstanding Bonds to compensate for a loss of
Special Tax A revenues resulting from the construction of fewer residential dwelling units,
smaller residential dwelling units, or a modified amount of non-residential Acreage, as
determined in accordance with Section D below.
"Special Tax B" means the special tax to be levied in each Fiscal Year on each Assessor's
Parcel of Taxable Property within CFD No. 04-1 to fund the Special Tax Requirement for
Services.
"Special Tax Requirement for Facilities" means that amount required in any Fiscal Year
for CFD No. 04-1 to: (i) pay 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 on the Bonds due in the calendar year
commencing in such Fiscal Year; (iii) pay Administrative Expenses; (iv) pay any amounts
required to establish or replenish any reserve funds for all Outstanding Bonds; (v) pay for
reasonably anticipated Special Tax A delinquencies based on the delinquency rate for the
Special Tax A levy in the previous Fiscal Year; less (vi) a credit for funds available to
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CFD No. 04-1
July 8, 2004
Page 4
reduce the annual Special Tax A levy, as determined by the CFD Administrator pursuant to
the Indenture.
"Special Tax Requirement for Services" means that amount required in any Fiscal Year
for CFD No. 04-1 to (i) pay directly for Authorized Services due in the calendar year
commencing in such Fiscal Year; (ii) pay a proportionate share of Administrative Expenses;
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 of the Assessor's Parcels within the boundaries ofCFD No.
04-1 which are not exempt from the Special Tax pursuant to law or Section F 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 F 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 F below.
"Trustee" means the trustee or fiscal agent under the Indenture.
"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 within CFD No. 04-1 shall be classified as Developed
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.
Residential Property shall be assigned to Land Use Classes 1 through 13 as listed in Table 1
below based on the type of use and the Residential Floor Area for each unit. Non-
Residential Property shall be assigned to Land Use Class 14.
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CFD No. 04-1
July 8, 2004
Page 5
C.
MAXIMUM SPECIAL TAX
1.
Developed Property
(a).
Maximum Special Tax
The Maximum Special Tax A and the Maximum Special Tax B for each
Land Use Class is shown below in Table 1. The Maximum Special Tax for
each Assessor's Parcel classified as Developed Property shall be the
Maximum Special Tax A plus Maximum Special Tax B.
TABLE 1
Maximum Special Tax for Developed Property in
City of Tustin Community Facilities District No. 04-1
(Tustin Legacy/John Laing Homes)
Fiscal Year 2004-2005
1 Single Family Detached Property => 3,350 s.f. $3,410 per unit $822 per unit
2 Single Family Detached Property 3,150 - 3,349 s.f. $3,182 per unit $822 per unit
3 Single Family Detached Property 2,950 - 3,149 s~f. $3,039 per unit $822 per unit
4 Single Family Detached Property 2,650 - 2,949 s.f. $2,988 per unit $822 per unit
5 Single Family Detached Property 2,350 - 2,649 s.f. $2,704 per unit $822 per unit
6 Single Family Detached Property 1,900 - 2,349 s.f. $2,453 per unit $822 per unit
7 Single Family Detached Property 1,500 - 1,899 s.f. $2,254 per unit $822 per unit
8 Single Family Detached Property < 1,500 s.f. $1,969 per unit $822 per unit
9 Single Family Attached Property => 1,700 s.f. $2,112 per unit $822 per unit
10 Single Family Attached Property < 1,700 s.f. $1,719 per unit $822 per unit
11 Affordable Units (Moderate Income) NA $378 per unit $822 per unit
12 Affordable Units (Lower Income) NA $209 per unit $209 per unit
13 Affordable Units (Very Low Income) NA $53 per unit $53 per unit
14 Non-Residential Property NA $26,322 per Acre $10,639 per Acre
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CFD No. 04-1
July 8, 2004
Page 6
(b).
Increase in the Maximum Special Tax
The Fiscal Year 2004-2005 Maximum Special Tax A, identified in Table 1
above, shall not be subject to change and shall therefore remain the same in
every Fiscal Year. On each July 1, commencing on July 1, 2005, the
Maximum Special Tax B listed in Table 1 above shall be increased based on
the percentage change in the Consumer Price Index, with a maximum annual
increase of six percent (6%) and a minimum annual increase of two percent
(2%) per Fiscal Year.
(c).
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.
Undeveloped Property, Taxable Public Property, and Taxable Property Owner
Association Property
(a).
Maximum Special Tax A
The Fiscal Year 2004-2005 Maximum Special Tax A for Undeveloped
Property, Taxable Public Property, and Taxable Property Owner Association
Property shall be $29,414 per Acre.
(b).
Maximum Special Tax B
Undeveloped Property, Taxable Public Property and Taxable Property Owner
Association Property shall not be subject to a Maximum Special Tax B.
(c).
Increase in the Maximum Special Tax A
The Fiscal Year 2004-2005 Maximum Special Tax A shall not be subject to
change and shall therefore remain the same in every Fiscal Year.
D.
SPECIAL TAXA BUYDOWN
All of the requirements of this Section D, which describes the need for a Special Tax A
Buydown that may result from a change in development as determined pursuant to this
Section D, shall only apply after the sale of Bonds by CFD No. 04-1. The following
definitions apply to this Section D:
"Certificate of Satisfaction of Special Tax A Buydown" means a certificate from the CFD
Administrator stating that the property described in such certificate has sufficiently met the
Special Tax A Buydown Requirement for such property as calculated under this Section D.
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CFD No. 04-1
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"Letter of Compliance" means a letter ITom the CFD Administrator allowing the issuance
of building permits based on the prior submittal of a request for Letter of Compliance by a
property owner.
"Special Tax A Buydown Requirement" means the total amount of Special Tax A
Buydown necessary to be prepaid to permit the issuance of building permits listed in a
request for Letter of Compliance, as calculated under this Section D.
"Update Property" means an Assessor's Parcel of Undeveloped Property for which a
building permit has been issued. For purposes of all calculations in this Section D, Update
Property shall be taxed as if it were already Developed Property during the current Fiscal
Year.
1.
Request for Letter of Compliance
The CFD Administrator must submit a Letter of Compliance to the City for a specific
Assessor's Parcel or lot prior to the issuance by the City of a building permit for the
construction of any residential and/or non-residential development on that Assessor's Parcel
or lot. If a Letter of Compliance has not yet been issued, and a property owner wishes to
request a building permit for an Assessor's Parcel or lot, the property owner must first
request a Letter of Compliance ITom the CFD Administrator. The request ITom the property
owner shall contain a list of all building permits currently being requested, the Assessor's
Parcels or tract and lot numbers on which the construction is to take place, and the
Residential Floor Area (for each residential dwelling unit) or the Acreage (for each non-
residential parcel) associated with each building permit.
2.
Issuance of Letter of Compliance
Upon the receipt of a request for Letter of Compliance, the CFD Administrator shall assign
each building permit identified in such request to Land Use Classes 1 through 14 as listed in
Table 2 below, based on the type of use and the Residential Floor Area identified for each
such building permit. Ifthe CFD Administrator determines (i) that the number of building
permits requested for each Land Use Class, plus those building permits previously issued for
each Land Use Class, will not cause the total number of residential units or non-residential
Acreage within any such Land Use Class to exceed the number of units or Acreage for such
Land Use Class identified in Table 2 below, and (ii) that the total number of residential
dwelling units anticipated to be constructed pursuant to the current development plan for
CFD No. 04-1 will not be less than 565, then a Letter of Compliance shall be submitted to
the City by the CFD Administrator approving the issuance ofthe requested building permits.
This Letter of Compliance shall be submitted by the CFD Administrator within ten days of
the submittal of the request for Letter of Compliance by the property owner. However,
should (i) the building permits requested, plus those previously issued, cause the total
number of residential units or non-residential Acreage within any such Land Use Class to
exceed the number of units or non-residential Acreage for such Land Use Class identified in
Table 2 below, or (ii) the CFD Administrator determine that changes in the development
plan may cause a decrease in the number of residential dwelling units within CFD No. 04-1
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CFD No. 04-1
July 8, 2004
Page 8
to below 565 dwelling units, then a letter of Compliance will not be issued and the CFD
Administrator will be directed to determine if a Special Tax A Buydown shall be required.
TABLE 2
Expected Dwelling Units per Land Use Class and Non-Residential Acreage
City of Tustin Community Facilities District No. 04-1
(Tustin Legacy/John Laing Homes)
1 Single Family Detached Property => 3,350 s.f. 27 units
2 Single Family Detached Property 3,150 - 3,349 s.f. 50 units
3 Single Family Detached Property 2,950 - 3,149 s.f. 23 units
4 Single Family Detached Property 2,650 - 2,949 s.f. 19 units
5 Single Family Detached Property 2,350 - 2,649 s.f. 11 units
6 Single Family Detached Property 1,900 - 2,349 s.f. 19 units
7 Single Family Detached Property 1,500 - 1,899 s.f. 0 units
8 Single Family Detached Property < 1,500 s.f. 126 units
9 Single Family Attached Property => 1,700 s.f. 63 units
10 Single Family Attached Property < 1,700 s.f. 109 units
11 Affordable Units (Moderate Income) NA 63 units
12 Affordable Units (Lower Income) NA 22 units
13 Affordable Units (Very Low Income) NA 33 units
14 Non-Residential Property NA 0 Acres
3. Calculation of Special Tax A Buydown
If a Special Tax A Buydown calculation is required as a result of item 2, above, the
CFD Administrator shall review the current development plan for CFD No. 04-1 in
consultation with the current property owners for all remaining Undeveloped
Property in CFD No. 04-1, and shall prepare an updated version of Table 2
identifying the revised number of units or non-residential Acreage anticipated within
each Land Use Class. The CFD Administrator shall not be responsible for any
delays in preparing the updated Table 2 that results from a refusal on the part of one
or more current property owners of Undeveloped Property to provide information on
their future development.
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CFD No. 04-1
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The CFD Administrator shall then review the updated Table 2 and detennine the
Special Tax A Buydown Requirement, if any, to be applied to the property identified
in the request for Letter of Compliance to assure the CFD's ability to collect special
taxes equal to 110% debt service coverage on the Outstanding Bonds, plus the cost of
annual CFD administration. The calculations shall be undertaken by the CFD
Administrator as follows:
Step 1. Compute the sum of the Maximum Special Tax A to be levied on all
Developed Property and Update Property within CFD No. 04-1, plus the
sum ofthe Maximum Special Tax A to be levied on all future development as
identified in the current development plan as detennined by the CFD
Administrator in consultation with the property owner.
Step 2. Determine the amount of Special Tax A required to provide 110% debt
service coverage on the Outstanding Bonds, plus any other costs associated
with the Special Tax Requirement for Facilities.
Step 3. If the total sum computed pursuant to step 1 is greater than or equal to the
amount computed pursuant to step 2, then no Special Tax A Buydown will be
required and a Letter of Compliance shall immediately be issued by the CFD
Administrator for all of the building pennits currently being requested. If the
total sum computed pursuant to step 1 is less than the amount computed
pursuant to step 2, then continue to step 4.
Step 4. Detennine the Maximum Special Tax A shortfall by subtracting the total sum
computed pursuant to step_I from the amount computed pursuant to step 2.
Divide this Maximum Special Tax A shortfall by the amount computed
pursuant to step 2.
Step 5.The Special Tax A Buydown Requirement shall be calculated using the
prepayment fonnula described in Section 1.1, with the following exceptions:
(i) skip Paragraphs 1, 2 and 3, and begin with Paragraph 4; (ii) the Bond
Redemption Amount in Paragraph 4 ofthe prepayment fonnula described in
Section 1.1 shall equal the product of the quotient computed pursuant to step
4 above times the Previously Issued Bonds, as defined in Section 1.1; (iii) the
Capitalized Interest Credit described in Paragraph 12 of Section 1.1 shall be
$0; and (iv) any payments of the Special Tax A Buydown (less
Administrative Fees and Expenses) shall be disbursed pursuant to the
Indenture.
The Special Tax A Buydown computed under step 5 shall be billed directly to the
property owner of each Assessor's Parcel identified in the request for Letter of
Compliance and shall be due within 30 days ofthe billing date. lithe Special Tax A
Buydown is not paid within 45 days of the billing date, a delinquent penalty of 10
percent shall be added to the Special Tax A Buydown. Upon receipt ofthe Special
Tax A Buydown payment, the CFD Administrator shall issue a Letter of Compliance
and a Certificate of Satisfaction of Special Tax A Buydown for the subject property.
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CFD No. 04-1
July 8, 2004
Page 10
4.
Costs and Expenses Related to Implementation of Special Tax A Buydown
The property owner of each Assessor's Parcel identified in the request for Letter of
Compliance shall pay all costs of the CFD Administrator or other consultants
required to review the application for building permits, calculate the Special Tax A
Buydown, issue Letters of Compliance or any other actions required under Section
D. Such payments shall be due 30 days after receipt of invoice by such property
owner. A deposit may be required by the CFD Administrator prior to undertaking
work related to the Special Tax A Buydown.
E.
METHOD OF APPORTIONMENT OF THE SPECIAL TAX
1.
Special Tax A
Commencing with Fiscal Year 2004-2005 and for each following Fiscal Year, the Council
shall determine the Special Tax Requirement for Facilities and shall levy the Special Tax A
until the total Special Tax A levy equals the Special Tax Requirement for Facilities. The
Special Tax A shall be levied each Fiscal Year as follows:
First: The Special Tax A shall be levied Proportionately on each Assessor's Parcel of
Developed Property at up to 100% of the applicable Maximum Special Tax A;
Second: If additional monies are needed to satisfy the Special Tax Requirement for
Facilities after the first step has been completed, the Special Tax A shall be levied
Proportionately on each Assessor's Parcel of Undeveloped Property at up to 100% of the
~ Maximum Special Tax A for Undeveloped Property;
Third: If additional monies are needed to satisfy the Special Tax Requirement for Facilities
after the first two steps have been completed, then the 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;
Fourth: If additional monies are needed to satisfy the Special Tax Requirement for Facilities
after the first three steps have been completed, then the 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 2004-2005 and for each following Fiscal Year, the Council
shall levy the Special Tax B until the total Special Tax B levy equals the Special Tax
Requirement for Services. The Special Tax B shall be levied Proportionately each Fiscal
Year on each Assessor's Parcel of Developed Property at up to 100% of the applicable
Maximum Special Tax B as needed to satisfy the Special Tax Requirement for Services.
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CFD No. 04-1
July 8, 2004
Page 11
F.
EXEMPTIONS
1.
Special Tax A
No Special Tax A shall be levied on up to 1.4 Acres of Public Property and up to 27.1 Acres
of Property Owner Association Property. Tax-exempt status will be assigned by the CFD
Administrator in the chronological order in which property becomes Public Property or
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.
Public Property or Property Owner Association Property that is not exempt from the Special
Tax A under this section shall be subject to the levy ofthe Special Tax A and shall be taxed
Proportionately as part of the third and fourth steps in Section E.l.
2.
Special Tax B
No Special Tax B shall be levied on Undeveloped Property, Public Property and Property
Owner Association Property.
G.
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. 04-1. The CFD Administrator shall review the appeal and if the CFD Administrator
concurs, the amount of the Special Tax levied shall be appropriately modified.
The Council may interpret this Rate and Method of Apportionment of Special Tax for
purposes of clarifying any ambiguity and make detenninations relative to the amount of
Administrative Expenses and any landowner or resident appeals. Any decision of the
Council shall be final and binding as to all persons.
H.
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 detennine, including
direct billing ofthe affected property owners. The Special Tax A Buydown shall be directly
billed to the property owner at the time such Special Tax is being levied.
I.
PREPAYMENT OF SPECIAL TAX A
The following definitions apply to this Section I:
"Buildout" means, for CFD No. 04-1, that all expected building pennits have been issued.
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CFD No. 04-1
July 8, 2004
Page 12
"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 CUITent Fiscal Year.
1.
Prepayment in Full
The obligation of an Assessor's Parcel to pay the Special Tax A may be prepaid and
permanently satisfied as described herein only after the sale of Bonds by CFD No.
04-1; provided that a prepayment may be made only for Assessor's Parcels of
Developed Property or Undeveloped Property for which a building permit has been
issued, and 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
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 Bonds fTom 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 Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
equals Prepayment Amount
Total:
As of the proposed date of prepayment, the Special Tax A Prepayment Amount
(defined below) shall be calculated as follows:
Paraeraph No.:
1.
Confirm that no Special Tax delinquencies apply to such Assessor's Parcel.
2.
For Assessor's Parcels of Developed Property, compute the Maximum Special TaxA
for the CUITent Fiscal Year applicable for the Assessor's Parcel to be prepaid. For
Assessor's Parcels of Undeveloped Property (for which a building permit has been
issued) to be prepaid, compute the Maximum Special Tax A for the CUITent Fiscal
Year applicable for that Assessor's Parcel as though it was already designated as
Developed Property, based upon such building permit.
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CFD No. 04-1
July 8, 2004
Page 13
3.
Divide the Maximum Special Tax A computed pursuant to paragraph 2 by the total
estimated Maximum Special Tax A for CFD No. 04-1 based on the Developed
Property Special Tax A which could be levied in the current Fiscal Year on all
expected development through Buildout, excluding any Assessor's Parcels the
Special Tax A for 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-1O0%), if any, on the
Previously Issued Bonds to be redeemed (the "Redemption Premium").
6.
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.
7.
Determine the Special Tax A levied on the Assessor's Parcel in the current Fiscal
Year which has not yet been paid.
8.
Compute the minimum amount the CFD Administrator reasonably expects to derive
from the reinvestment of the Special Tax A Prepayment Amount less the
Administrative Fees and Expenses from the date of prepayment until the redemption
date for the Previously Issued Bonds to be redeemed with the prepayment.
9.
Add the amounts computed pursuant to paragraphs 6 and 7 and subtract the amount
computed pursuant to paragraph 8 (the "Defeasance Amount").
10.
Verify the administrative fees and expenses ofCFD No. 04-1, including the costs of
computation of the prepayment, the costs to invest the prepayment proceeds, the
costs of redeeming Bonds, and the costs of recording any notices to evidence the
prepayment and the redemption (the "Administrative Fees and Expenses").
11
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.
12.
If any capitalized interest for the Previously Issued Bonds will not have been
expended at the time of 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").
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CFD No. 04-1
July 8, 2004
Page 14
13.
The Special Tax A Prepayment is equal to the sum of the amounts computed
pursuant to paragraphs 4, 5, 9 and 10, less the amounts computed pursuant to
paragraphs 11 and 12 (the "Prepayment Amount").
14.
From the Prepayment Amount, the amounts computed pursuant to paragraphs 4, 5, 9,
11 and 12 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 10 shall be retained by CFD
No. 04-1.
The Special Tax A Prepayment Amount may be sufficient to redeem other than a $5,000
increment of 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 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 7 (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 Council shall cause a suitable notice to be recorded
in compliance with the Act, to indicate the prepayment ofthe 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. 04-1 (after excluding 1.4 Acres of Public
Property and 27.1 Acres of Property Owner Association Property as set forth in Section F)
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.
2.
Prepayment in Part
The Special Tax A on an Assessor's Parcel of Developed Property or an Assessor's Parcel of
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 X F.
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 ofthe Assessor's Parcel
is partially prepaying the Special Tax A.
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CFD No. 04-1
July 8, 2004
Page 15
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 ofCFD No. 04-1 that there has been a partial prepayment
ofthe 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 E.!.
J.
TERM OF SPECIAL TAX
The Special Tax A shall be levied for a period not to exceed forty years commencing with
Fiscal Year 2004-2005. The Special Tax B shall be levied as long as necessary to meet the
Special Tax Requirement for Services.
K:\Clients2\ Tustin.Cit\TustinMCAS\JohnLaing\RMA \Laing- 6Final.doc
City a/Tustin - TustinLegacy/John Laing Homes
CFD No. 04-1
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EXHIBIT A
RATE AND METHOD OF APPORTIONMENT FOR
CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 04-1
(TUSTIN LEGACY/JOHN LAING HOMES)
A Special Tax shall be levied on all Assessor's Parcels in City of Tustin Community Facilities
District No. 04-1 (Tustin Legacy/John Laing Homes) ("CFD No. 04-1 ") and collected each Fiscal
Year commencing in Fiscal Year 2004-2005, in an amount determined through the application ofthe
Rate and Method of Apportionment as described below. All ofthe real property in CFD No. 04-1,
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 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 an Assessor's Parcel Map, the land area
shown on the applicable final map, 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 Community Facilities Act of 1982, 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. 04-1: 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 County
or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs ofthe Trustee
(including its legal counsel) in the discharge of the duties required of it under the Indenture;
the costs to the City, CFD No. 04-1 or any designee thereof of complying with arbitrage
rebate requirements; the costs to the City, CFD No. 04-1 or any designee thereof of
complying with City, CFD No. 04-1 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. 04-1 or any designee thereof related to an appeal of
the Special Tax; the costs associated with the release offunds from any escrow account; and
the City's annual administration fees and third party expenses. Administrative Expenses
shall also include amounts estimated or advanced by the City or CFD No. 04-1 for any other
administrative purposes of CFD No. 04-1, including attorney's fees and other costs related to
commencing and pursuing to completion any foreclosure as a result of delinquent Special
Taxes.
"Affordable Units" means residential dwelling units located on one or more Assessor's
Parcels of Residential Property that are subject to deed restrictions, resale restrictions, and/or
regulatory agreements recorded in favor of the City providing for affordable housing.
Affordable Units shall be further classified as Moderate Income, Lower Income, or Very
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Affordable Units shall be further classified as Moderate Income, Lower Income, or Very
Low Income (as defined in Sections 50079.5, 50093, and 50105 of the California Health And
Safety Code), with the total number of Affordable Units not to exceed 63 Moderate Income
units, 22 Lower Income units and 33 Very Low Income units. Affordable Units constructed
within the CFD shall be designated by the CFD Administrator in the chronological order in
which the building permits for such units are issued. However, if the total number of
Affordable Units constructed in anyone of the three affordable income categories exceeds
the amount stated above for such income category, then the units exceeding such total shall
be not be considered Affordable Units and shall be assigned to a Land Use Class based on
the type of use and Residential Floor Area for each such unit.
"Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an
assigned Assessor's Parcel number.
"Assessor's Parcel Map" means an official map of the County Assessor of the County
designating parcels by Assessor's Parcel number.
"Authorized Services" means those authorized services proposed to be financed by CFD
No. 04-1 pursuant to the Act and listed in Exhibit A to this Rate and Method of
Apportionment.
"Bonds" means any bonds or other debt (as defined in Section 533l7(d) of the Act),
whether in one or more series, issued by CFD No. 04-1 under the Act.
"CFD Administrator" means an official of the City, or designee thereof, responsible for
determining the Special Tax Requirement for Facilities and the Special Tax Requirement for
Services and providing for the levy and collection of the Special Taxes.
"CFD No. 04-1" means City of Tustin Community Facilities District No. 04-1 (Tustin
Legacy/John Laing Homes).
"City" means the City of Tustin.
"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 detennined by the CFD Administrator that is
reasonably comparable to the Consumer Price Index for the City of Los Angeles.
"Council" means the City Council ofthe City, acting as the legislative body ofCFD No. 04-
1.
"County" means the County of Orange.
"Developed Property" means, for each Fiscal Year, all Taxable Property, exclusive of
Taxable Public Property and Taxable Property Owner Association Property, for which the
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Final Subdivison was recorded on or prior to January 1 of the prior Fiscal Year and a
building permit for new construction was issued after January 1,2004 and prior to May 1 of
the prior Fiscal Year.
"Final Subdivision" means a subdivision of property by recordation of a final 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 starting July 1 and ending on 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 fÌom time to
time.
"Land Use Class" means any ofthe classes listed in Table I 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 below, that can be levied in any Fiscal Year on any Assessor's Parcel.
"Maximum Special Tax B" means the maximum Special Tax B detennined in accordance
with Section C below, that can be levied in any Fiscal Year on any Assessor's Parcel.
"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 by the City.
"Outstanding Bonds" means all Bonds which are deemed to be outstanding under the
Indenture.
"Property Owner Association Property" means, for each Fiscal Year, any property within
the boundaries ofCFD No. 04-1 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 ofthe actual Special Tax A
levy to the Maximum 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 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 E below.
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"Public Property" means property within the boundaries of CFD No. 04-1 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 ofa 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 issued by the City.
"Single Family Attached Property" means all Assessor's Parcels of Residential Property
for which building permits have been issued for attached residential units.
"Single Family Detached Property" means all Assessor's Parcels of Residential Property
for which building permits have been issued for detached residential units.
"Special Tax" means the Special Tax A and/or Special Tax B, as applicable.
"Special Tax A" means the special tax to be levied in each Fiscal Year on each Assessor's
Parcel of Taxable Property within CFD No. 04-1 to fund the Special Tax Requirement for
Facilities.
"Special Tax A Buydown" means a mandatory bond principal buydown payment made by
the property owner to reduce the amount of Outstanding Bonds to compensate for a loss of
Special Tax A revenues resulting from the construction of fewer residential dwelling units,
smaller residential dwelling units, or a modified amount of non-residential Acreage, as
determined in accordance with Section D below.
"Special Tax B" means the special tax to be levied in each Fiscal Year on each Assessor's
Parcel of Taxable Property within CFD No. 04-1 to fund the Special Tax Requirement for
Services.
"Special Tax Requirement for Facilities" means that amount required in any Fiscal Year
for CFD No. 04-1 to: (i) pay 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 on the Bonds due in the calendar year
commencing in such Fiscal Year; (iii) pay Administrative Expenses; (iv) pay any amounts
required to establish or replenish any reserve funds for all Outstanding Bonds; (v) pay for
reasonably anticipated Special Tax A delinquencies based on the delinquency rate for the
Special Tax A levy in the previous Fiscal Year; less (vi) a credit for funds available to
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reduce the annual Special Tax A levy, as deteI11lined by the CFD Administrator pursuant to
the Indenture.
"Special Tax Requirement for Services" means that amount required in any Fiscal Year
for CFD No. 04-1 to (i) pay directly for Authorized Services due in the calendar year
commencing in such Fiscal Year; (ii) pay a proportionate share of Administrative Expenses;
less (iii) a credit for funds available to reduce the annual Special Tax B levy, as deteI11lined
by the CFD Administrator.
"State" means the State ofCalifomia.
"Taxable Property" means all of the Assessor's Parcels within the boundaries ofCFD No.
04-1 which are not exempt from the Special Tax pursuant to law or Section F 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 F 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 F below.
"Trustee" means the trustee or fiscal agent under the Indenture.
"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 within CFD No. 04-1 shall be classified as Developed
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 deteI11lined pursuant to Sections C, D, and E below.
Residential Property shall be assigned to Land Use Classes 1 through 13 as listed in Table 1
below based on the type of use and the Residential Floor Area for each unit. Non-
Residential Property shall be assigned to Land Use Class 14.
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C.
MAXIMUM SPECIAL TAX
1.
Developed Property
(a).
Maximum Special Tax
The Maximum Special Tax A and the Maximum Special Tax B for each
Land Use Class is shown below in Table 1. The Maximum Special Tax for
each Assessor's Parcel classified as Developed Property shall be the
Maximum Special Tax A plus Maximum Special Tax B.
TABLE 1
Maximum Special Tax for Developed Property in
City of Tustin Community Facilities District No. 04-1
(Tustin Legacy/John Laing Homes)
Fiscal Year 2004-2005
1 Single Family Detached Property => 3,350 s.f. $3,410 per unit $822 per unit
2 Single Family Detached Property 3,150 - 3,349 s.f. $3,182 per unit $822 per unit
3 Single Family Detached Property 2,950 - 3,149 s.f. $3,039 per unit $822 per unit
4 Single Family Detached Property 2,650 - 2,949 s.f. $2,988 per unit $822 per unit
5 Single Family Detached Property 2,350 - 2,649 s.f. $2,704 per unit $822 per unit
6 Single Family Detached Property 1,900 - 2,349 s.f. $2,453 per unit $822 per unit
7 Single Family Detached Property 1,500 - 1,899 s.f. $2,254 per unit $822 per unit
8 Single Family Detached Property < 1,500 s.f. $1,969 per unit $822 per unit
9 Single Family Attached Property => 1,700 s.f. $2,112 per unit $822 per unit
10 Single Family Attached Property < 1,700 s.f. $1,719 per unit $822 per unit
11 Affordable Units (Moderate Income) NA $378 per unit $822 per unit
12 Affordable Units (Lower Income) NA $209 per unit $209 per unit
13 Affordable Units (Very Low Income) NA $53 per unit $53 per unit
14 Non-Residential Property NA $26,322 per Acre $10,639 per Acre
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(b).
Increase in the Maximum Special Tax
The Fiscal Year 2004-2005 Maximum Special Tax A, identified in Table 1
above, shall not be subject to change and shall therefore remain the same in
every Fiscal Year. On each July 1, commencing on July 1, 2005, the
Maximum Special Tax B listed in Table 1 above shall be increased based on
the percentage change in the Consumer Price Index, with a maximum annual
increase of six percent (6%) and a minimum annual increase of two percent
(2%) per Fiscal Year.
(c).
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.
Undeveloped Property, Taxable Public Property, and Taxable Property Owner
Association Property
(a).
Maximum Special Tax A
The Fiscal Year 2004-2005 Maximum Special Tax A for Undeveloped
Property, Taxable Public Property, and Taxable Property Owner Association
Property shall be $29,414 per Acre.
(b).
Maximum Special Tax B
Undeveloped Property, Taxable Public Property and Taxable Property Owner
Association Property shall not be subject to a Maximum Special Tax B.
(c).
Increase in the Maximum Special Tax A
The Fiscal Year 2004-2005 Maximum Special Tax A shall not be subject to
change and shall therefore remain the same in every Fiscal Year.
D.
SPECIAL TAX A BUYDOWN
All of the requirements of this Section D, which describes the need for a Special Tax A
Buydown that may result from a change in development as determined pursuant to this
Section D, shall only apply after the sale of Bonds by CFD No. 04-1. The following
definitions apply to this Section D:
"Certificate of Satisfaction of Special Tax A Buydown" means a certificate from the CFD
Administrator stating that the property described in such certificate has sufficiently met the
Special Tax A Buydown Requirement for such property as calculated under this Section D.
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CFD No. 04-1
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"Letter of Compliance" means a letter from the CFD Administrator allowing the issuance
of building permits based on the prior submittal of a request for Letter of Compliance by a
property owner.
"Special Tax A Buydown Requirement" means the total amount of Special Tax A
Buydown necessary to be prepaid to permit the issuance of building permits listed in a
request for Letter of Compliance, as calculated under this Section D.
"Update Property" means an Assessor's Parcel of Undeveloped Property for which a
building permit has been issued. For purposes of all calculations in this Section D, Update
Property shall be taxed as if it were already Developed Property during the current Fiscal
Year.
1.
Request for Letter of Compliance
The CFD Administrator must submit a Letter of Compliance to the City for a specific
Assessor's Parcel or lot prior to the issuance by the City of a building permit for the
construction of any residential and/or non-residential development on that Assessor's Parcel
or lot. If a Letter of Compliance has not yet been issued, and a property owner wishes to
request a building permit for an Assessor's Parcel or lot, the property owner must first
request a Letter of Compliance from the CFD Administrator. The request from the property
owner shall contain a list of all building permits cuITently being requested, the Assessor's
Parcels or tract and lot numbers on which the construction is to take place, and the
Residential Floor Area (for each residential dwelling unit) or the Acreage (for each non-
residential parcel) associated with each building permit.
2.
Issuance of Letter of Compliance
Upon the receipt of a request for Letter of Compliance, the CFD Administrator shall assign
each building permit identified in such request to Land Use Classes 1 through 14 as listed in
Table 2 below, based on the type of use and the Residential Floor Area identified for each
such building permit. If the CFD Administrator determines (i) that the number of building
permits requested for each Land Use Class, plus those building permits previously issued for
each Land Use Class, will not cause the total number of residential units or non-residential
Acreage within any such Land Use Class to exceed the number of units or Acreage for such
Land Use Class identified in Table 2 below, and (ii) that the total number of residential
dwelling units anticipated to be constructed pursuant to the CUITent development plan for
CFD No. 04-1 will not be less than 565, then a Letter of Compliance shall be submitted to
the City by the CFD Administrator approving the issuance ofthe requested building permits.
This Letter of Compliance shall be submitted by the CFD Administrator within ten days of
the submittal of the request for Letter of Compliance by the property owner. However,
should (i) the building permits requested, plus those previously issued, cause the total
number of residential units or non-residential Acreage within any such Land Use Class to
exceed the number of units or non-residential Acreage for such Land Use Class identified in
Table 2 below, or (ii) the CFD Administrator determine that changes in the development
plan may cause a decrease in the number of residential dwelling units within CFD No. 04-1
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CFD No. 04-1
July 8, 2004
Page 8
to below 565 dwelling units, then a letter of Compliance will not be issued and the CFD
Administrator will be directed to determine if a Special Tax A Buydown shall be required.
TABLE 2
Expected Dwelling Units per Land Use Class and Non-Residential Acreage
City of Tustin Community Facilities District No. 04-1
(Tustin Legacy/John Laing Homes)
1 Single Family Detached Property => 3,350 s.f. 27 units
2 Single Family Detached Property 3,150 - 3,349 s.f. 50 units
3 Single Family Detached Property 2,950 - 3,149 s.f. 23 units
4 Single Family Detached Property 2,650 - 2,949 s.f. 19 units
5 Single Family Detached Property 2,350 - 2,649 s.f. 11 units
6 Single Family Detached Property 1,900 - 2,349 s.f. 19 units
7 Single Family Detached Property 1,500 - 1,899 s.f. 0 units
8 Single Family Detached Property < 1,500 s.f. 126 units
9 Single Family Attached Property => 1,700 s.f. 63 units
10 Single Family Attached Property < 1,700 s.f. 109 units
11 Affordable Units (Moderate Income) NA 63 units
12 Affordable Units (Lower Income) NA 22 units
13 Affordable Units (Very Low Income) NA 33 units
14 Non-Residential Property NA 0 Acres
3. Calculation of Special Tax A Buydown
If a Special Tax A Buydown calculation is required as a result of item 2, above, the
CFD Administrator shall review the current development plan for CFD No. 04-1 in
consultation with the current property owners for all remaining Undeveloped
Property in CFD No. 04-1, and shall prepare an updated version of Table 2
identifying the revised number of units or non-residential Acreage anticipated within
each Land Use Class. The CFD Administrator shall not be responsible for any
delays in preparing the updated Table 2 that results from a refusal on the part of one
or more current property owners of Undeveloped Property to provide information on
their future development.
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The CFD Administrator shall then review the updated Table 2 and detennine the
Special Tax A Buydown Requirement, if any, to be applied to the property identified
in the request for Letter of Compliance to assure the CFD's ability to collect special
taxes equal to 110% debt service coverage on the Outstanding Bonds, plus the cost of
annual CFD administration. The calculations shall be undertaken by the CFD
Administrator as follows:
Step 1. Compute the sum of the Maximum Special Tax A to be levied on all
Developed Property and Update Property within CFD No. 04-1, plus the
sum of the Maximum Special Tax A to be levied on all future development as
identified in the current development plan as detennined by the CFD
Administrator in consultation with the property owner.
Step 2. Detennine the amount of Special Tax A required to provide 110% debt
service coverage on the Outstanding Bonds, plus any other costs associated
with the Special Tax Requirement for Facilities.
Step 3. If the total sum computed pursuant to step 1 is greater than or equal to the
amount computed pursuant to step 2, then no Special Tax A Buydown will be
required and a Letter of Compliance shall immediately be issued by the CFD
Administrator for all of the building permits currently being requested. If the
total sum computed pursuant to step 1 is less than the amount computed
pursuant to step 2, then continue to step 4.
Step 4. Determine the Maximum Special Tax A shortfall by subtracting the total sum
computed pursuant to step 1 from the amount computed pursuant to step 2.
Divide this Maximum Special Tax A shortfall by the amount computed
pursuant to step 2.
Step 5.The Special Tax A Buydown Requirement shall be calculated using the
prepayment fonnula described in Section 1.1, with the following exceptions:
(i) skip Paragraphs 1, 2 and 3, and begin with Paragraph 4; (ii) the Bond
Redemption Amount in Paragraph 4 ofthe prepayment fonnula described in
Section 1.1 shall equal the product of the quotient computed pursuant to step
4 above times the Previously Issued Bonds, as defined in Section 1.1; (iii) the
Capitalized Interest Credit described in Paragraph 12 of Section 1.1 shall be
$0; and (iv) any payments of the Special Tax A Buydown (less
Administrative Fees and Expenses) shall be disbursed pursuant to the
Indenture.
The Special Tax A Buydown computed under step 5 shall be billed directly to the
property owner of each Assessor's Parcel identified in the request for Letter of
Compliance and shall be due within 30 days ofthe billing date. Ifthe Special Tax A
Buydown is not paid within 45 days of the billing date, a delinquent penalty of 10
percent shall be added to the Special Tax A Buydown. Upon receipt ofthe Special
T ax A Buydown payment, the CFD Administrator shall issue a Letter of Compliance
and a Certificate of Satisfaction of Special Tax A Buydown for the subject property.
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CFD No. 04-1
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4.
Costs and Expenses Related to Implementation of Special Tax A Buydown
The property owner of each Assessor's Parcel identified in the request for Letter of
Compliance shall pay all costs of the CFD Administrator or other consultants
required to review the application for building permits, calculate the Special Tax A
Buydown, issue Letters of Compliance or any other actions required under Section
D. Such payments shall be due 30 days after receipt of invoice by such property
owner. A deposit may be required by the CFD Administrator prior to undertaking
work related to the Special Tax A Buydown.
E.
METHOD OF APPORTIONMENT OF THE SPECIAL TAX
1.
Special Tax A
Commencing with Fiscal Year 2004-2005 and for each following Fiscal Year, the Council
shall detennine the Special Tax Requirement for Facilities and shall levy the Special Tax A
until the total Special Tax A levy equals the Special Tax Requirement for Facilities. The
Special Tax A shall be levied each Fiscal Year as follows:
First: The Special Tax A shall be levied Proportionately on each Assessor's Parcel of
Developed Property at up to 100% of the applicable Maximum Special Tax A;
Second: If additional monies are needed to satisfy the Special Tax Requirement for
Facilities after the first step has been completed, the Special Tax A shall be levied
Proportionately on each Assessor's Parcel of Undeveloped Property at up to 100% of the
Maximum Special Tax A for Undeveloped Property;
Third: If additional monies are needed to satisfy the Special Tax Requirement for Facilities
after the first two steps have been completed, then the 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;
Fourth: If additional monies are needed to satisfy the Special Tax Requirement for Facilities
after the first three steps have been completed, then the 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 2004-2005 and for each following Fiscal Year, the Council
shall levy the Special Tax B until the total Special Tax B levy equals the Special Tax
Requirement for Services. The Special Tax B shall be levied Proportionately each Fiscal
Year on each Assessor's Parcel of Developed Property at up to 100% of the applicable
Maximum Special Tax B as needed to satisfy the Special Tax Requirement for Services.
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Page 11
F.
EXEMPTIONS
1.
Special Tax A
No Special Tax A shall be levied on up to 1.4 Acres of Public Property and up to 27.1 Acres
of Property Owner Association Property. Tax-exempt status will be assigned by the CFD
Administrator in the chronological order in which property becomes Public Property or
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.
Public Property or Property Owner Association 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 third and fourth steps in Section E.l.
2.
Special Tax B
No Special Tax B shall be levied on Undeveloped Property, Public Property and Property
Owner Association Property.
G.
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. 04-1. The CFD Administrator shall review the appeal and if the CFD Administrator
concurs, the amount of the Special Tax levied shall be appropriately modified.
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 and any landowner or resident appeals. Any decision of the
Council shall be final and binding as to all persons.
H.
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 ofthe affected property owners. The Special Tax A Buydown shall be directly
billed to the property owner at the time such Special Tax is being levied.
I.
PREPAYMENT OF SPECIAL TAX A
The following definitions apply to this Section I:
"Buildout" means, for CFD No. 04-1, that all expected building permits have been issued.
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CFD No. 04-1
July 8, 2004
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"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
The obligation of an Assessor's Parcel to pay the Special Tax A may be prepaid and
permanently satisfied as described herein only after the sale of Bonds by CFD No.
04-1; provided that a prepayment may be made only for Assessor's Parcels of
Developed Property or Undeveloped Property for which a building permit has been
issued, and 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
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 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 Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
equals Prepayment Amount
Total:
As of the proposed date of prepayment, the Special Tax A Prepayment Amount
(defined below) shall be calculated as follows:
Parae:raph No.:
1.
Confirm that no Special Tax delinquencies apply to such Assessor's Parcel.
2.
For Assessor's Parcels of Developed Property, compute the Maximum Special TaxA
for the current Fiscal Year applicable for the Assessor's Parcel to be prepaid. For
Assessor's Parcels of Undeveloped Property (for which a building permit has been
issued) to be prepaid, 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 such building permit.
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3.
Divide the Maximum Special Tax A computed pursuant to paragraph 2 by the total
estimated Maximum Special Tax A for CFD No. 04-1 based on the Developed
Property Special Tax A which could be levied in the current Fiscal Year on all
expected development through Buildout, excluding any Assessor's Parcels the
Special Tax A for 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-l 00%), if any, on the
Previously Issued Bonds to be redeemed (the "Redemption Premium").
6.
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.
7.
Determine the Special Tax A levied on the Assessor's Parcel in the current Fiscal
Year which has not yet been paid.
8.
Compute the minimum amount the CFD Administrator reasonably expects to derive
from the reinvestment of the Special Tax A Prepayment Amount less the
Administrative Fees and Expenses from the date of prepayment until the redemption
date for the Previously Issued Bonds to be redeemed with the prepayment.
9.
Add the amounts computed pursuant to paragraphs 6 and 7 and subtract the amount
computed pursuant to paragraph 8 (the "Defeasance Amount").
10.
Verify the administrative fees and expenses ofCFD No. 04-1, including the costs of
computation of the prepayment, the costs to invest the prepayment proceeds, the
costs of redeeming Bonds, and the costs of recording any notices to evidence the
prepayment and the redemption (the "Administrative Fees and Expenses").
11
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.
12.
If any capitalized interest for the Previously Issued Bonds will not have been
expended at the time of 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'j.
July 8, 2004
Page 14
City of Tustin - TustinLegacy/John Laing Homes
CFD No. 04-1
13.
The Special Tax A Prepayment is equal to the sum of the amounts computed
pursuant to paragraphs 4, 5, 9 and 10, less the amounts computed pursuant to
paragraphs 11 and 12 (the "Prepayment Amount").
14.
From the Prepayment Amount, the amounts computed pursuant to paragraphs 4,5,9,
11 and 12 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 10 shall be retained by CFD
No. 04-1.
The Special Tax A Prepayment Amount may be sufficient to redeem other than a $5,000
increment of 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 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 7 (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 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. 04-1 (after excluding 1.4 Acres of Public
Property and 27.1 Acres of Property Owner Association Property as set forth in Section F)
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.
2.
Prepayment in Part
The Special Tax A on an Assessor's Parcel of Developed Property or an Assessor's Parcel of
Undeveloped Property for which a building pennit 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 X F.
These terms have the following meaning:
PP=
PE=
F=
the partial prepayment
the Special Tax A Prepayment Amount calculated according to Section 1.1
the percentage, expressed as a decimal, by which the owner of the Assessor's Parcel
is partially prepaying the Special Tax A.
City of Tustin - TustinLegacy/John Laing Homes
CFD No. 04-1
July 8, 2004
Page 15
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 ofCFD No. 04-1 that there has been a partial prepayment
ofthe Special Tax A and that a portion ofthe 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 E.!.
J.
TERM OF SPECIAL TAX
The Special Tax A shall be levied for a period not to exceed forty years commencing with
Fiscal Year 2004-2005. The Special Tax B shall be levied as long as necessary to meet the
Special Tax Requirement for Services.
K: \Clients2\ Tustin. Cit\ TustinMCASIJohnLainglRMA ILaing- 6F inal.doc
City of Tustin - TustinLegacy/John Laing Homes
CFD No. 04-1
July 8, 2004
Page 16
EXHIBIT A
AUTHORIZED SERVICES
The types of services proposed to be financed by CFD No. 04-1 are police protection services, fire
protection services, ambulance and paramedic services, recreation program services, maintenance of
parks, parkways and open space and flood and storm protection services.
EXHIBIT B
CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 04-1
(TUSTIN LEGACY/JOHN LAING HOMES)
MAXIMUM SPECIAL TAXA FOR DEVELOPED PROPERTY
FISCAL YEAR 2004-2005
Single Family Detached Property => 3,350 s.f. $3,410 per unit
2 Single Family Detached Property 3,150 - 3,349 s.f. $3,182 per unit
3 Single Family Detached Property 2,950 - 3,149 s.f. $3,039 per unit
4 Single Family Detached Property 2,650 - 2,949 s.f. $2,988 per unit
5 Single Family Detached Property 2,350 - 2,649 s.f. $2,704 per unit
6 Single Family Detached Property 1,900 - 2,349 s.f. $2,453 per unit
7 - Single Family Detached Property 1,500 - 1,899 s.f. $2,254 per unit
8 Single Family Detached Property < 1,500 s.f. $1,969 per unit
9 Single Family Attached Property => 1,700 s.f. $2,112 per unit
10 Single Family Attached Property < 1,700 s.f. $1,719 per unit
11 Affordable Units (Moderate Income) NA $378 per unit
12 Affordable Units (Lower Income) NA $209 per unit
13 Affordable Units (Very Low Income) NA $53 per unit
14 Non-Residential Property NA $26,322 per Acre
* The Fiscal Year 2004-2005 Maximum Special Tax A, identified in the table above, shall not be subject to change and
shall therefore remain the same in every Fiscal Year.
EXHIBIT C
CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 04-1
(TUSTIN LEGACY/JOHN LAING HOMES)
MAXIMUM SPECIAL TAX B FOR DEVELOPED PROPERTY
FISCAL YEAR 2004-2005
1 Single Family Detached Property => 3,350 s.f. $822 per unit
2 Single Family Detached Property 3,150-3,349 s.f. $822 per unit
3 Single Family Detached Property 2,950 - 3,149 s.f. $822 per unit
4 Single Family Detached Property 2,650 - 2,949 s.f. $822 per unit
5 Single Family Detached Property 2,350 - 2,649 s.f. $822 per unit
6 Single Family Detached Property 1,900 - 2,349 s.f. $822 per unit
7 Single Family Detached Property 1,500 - 1,899 s.f. $822 per unit
8 Single Family Detached Property < 1,500 s.f. $822 per unit
9 Single Family Attached Property => 1,700 s.f. $822 per unit
10 Single Family Attached Property < 1,700 s.f. $822 per unit
11 Affordable Units (Moderate Income) NA $822 per unit
12 Affordable Units (Lower Income) NA $209 per unit
13 Affordable Units (Very Low Income) NA $53 per unit
14 N on- Residential Property NA $10,639 per Acre
* On each July I, commencing on July I, 2005, the Maximum Special Tax B, identified in the table above, shall be
increased based on the percentage change in the Consumer Price Index, with a maximum annual increase of six percent
(6%) and a minimum annual increase of two percent (2%) per Fiscal Year.
EXHIBIT D
CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 04-1
(TUSTIN LEGACY/JOHN LAING HOMES)
PROPOSED BOUNDARY MAP
C ONI'O""U 0.\:: y
....~. .
PROPOSED BOUNDARIES OF
CITY OF TUSTIN
COMMUNITY FACILITIES DISTRICT NO. 04-1
(TUSTIN LEGACY I JOHN LAING HOMES)
COUNTY OF ORANGE
STATE OF CALIFORNIA
SHEET 1 OF 1
Assessor Parcel Number
434 - 062 - 18 !" Æ;;
~ ~'
<F
x:. ':r
Reference is hereby
made to the Assessor
maps of the County
of Orange and Tract
map No. 16474 for on
exact description of
the lines and
dimensions of each
lot and parcel.
LEGEND
Proposed Boundaries of City of Tustin
- - Community Facilities District No. 04-1
(Tustin Legacy I John Laing Homes)
Prepared by David Taussig & Associates. Inc.
---'-'
M. t¡IÕ
(1) Filed in the office of the City Clerk of the City of
Tustin this 11f4'1 day of ~ ,2004.
~c(þ~
Pamela Stoker, City Clerk
(2) hereby certify that the within map showing the proposed
boundaries of City of Tustin Community Facilities District
No. 04.1 (Tustin Legacy I John Laing Homes), County of
Orange. State of California, was approved by the City
Council of the City of Tustin at a regular meeting thereof,
held on the l#î day of iTUV'\C, ,2004, by its
Resolution No. 04-53
~X1d1~
Pamela Stoker, City Clerk
(3) Filed this rr" day of Ju.nr. , 2004, at the hour
of 0'11:1'3 o'clock t.m, in Book ~ of Maps of
Assessment and Community Facilities Districts at page
LlI\ and as Instrument No.
~OOO~"0I1b4t. ....1.. in the office of the County
Recorder of the County of Orange, State of California.
J
$
Tom Daly
Counly Cletk'~ of ~ of orange
By --- ~p~
~
l'
.r.
.g
Fee E)t.tAtlþf-
,
Exempt recording requested. per
CA Government Code §6103
• •
OFFICIAL BALLOT
CITY OF TUSTIN
July 19, 2004
SPECIAL ELECTION
This ballot is for a special, landowner election. The number of votes to be voted pursuant
to this ballot is 69
INSTRUCTIONS TO VOTERS
To vote an the proposition, mark a cross ( +) or (X) in the voting square after the word `YES' or after
the word 'NO' All distinguishing marks or erasures are forbidden and make the ballot void. If you wrongly
mark, tear or deface this ballot return it to the City Clerk of the City of Tustin and obtain another
CITY OF TUSTIN
COMMUNITY FACILITIES DISTRICT NO. 04-1
(TUSTIN LEGACY /JOHN LAING HOMES)
PROPOSITION Shall City of Tustin Community Facilities District
No. 04 -1 (Tustin Legacy /John Laing Homes) (the "Community
Facilities District ") be authorized to incur bonded indebtedness in a
maximum amount of not to exceed $15,000,000 and levy a special tax
in order to finance certain facilities and services and shall the annual
appropriations limit of the Community Facilities District be established
in the amount of $15,000,000, all as specified in the Resolution entitled
A Resolution of the City Council of the City of Tustin of Formation
of City of Tustin Community Facilities District No. 04 -1 (Tustin
Legacy /John Laing Homes), Authorizing the Levy of a Special Tax
within the District and Establishing an Appropriations Limit for the
District' and the Resolution entitled A Resolution of the City Council
of the City of Tustin Deeming It Necessary to Incur Bonded
Indebtedness within City of Tustin Community Facilities District No.
04 -1 (Tustin Legacy /John Laing Homes)," adopted by the City Council
of the City of Tustin on July 19 2004?
DOCSLAI 474853.2
Yes.
0
No ❑
•
CANVASS AND STATEMENT OF RESULTS OF ELECTION
CITY OF TUSTIN
COMMUNITY FACILITIES DISTRICT NO. 04 -1
(TUSTIN LEGACY /JOHN LAING HOMES)
I hereby certify that on July 19 2004, I canvassed the returns of the special election held
on July 19, 2004 for City of Tustin Community Facilities District No 04 -1 (Tustin Legacy /John
Laing Homes), that the total number of ballots cast in said Community Facilities District and the
total number of votes cast for and against the proposition are as follows and that the totals as
shown for and against the proposition are true and correct:
City of Tustin Community Facilities
District No 04 -1 (Tustin Legacy /John
Laing Homes) Special Election, July
19 2004
Qualified
Landowner Votes
Votes Cast YES NO
69 V
PROPOSITION Shall City of Tustin Community Facilities District No. 04 -1 (Tustin
Legacy /John Laing Homes) (the "Community Facilities District ") be authorized to incur bonded
indebtedness in a maximum amount of not to exceed $15 000,000 and levy a special tax in order to
finance certain facilities and services and shall the annual appropriations limit of the Community
Facilities District be established in the amount of $15,000,000, all as specified in the Resolution
entitled A Resolution of the City Council of the City of Tustin of Formation of City of Tustin
Community Facilities District No. 04 -1 (Tustin Legacy /John Laing Homes), Authorizing the
Levy of a Special Tax within the District and Establishing an Appropriations Limit for the
District" and the Resolution entitled "A Resolution of the City Council of the City of Tustin
Deeming It Necessary to Incur Bonded Indebtedness within City of Tustin Community Facilities
District No. 04 -1 (Tustin Legacy /John Laing Homes), adopted by the City Council of the City of
Tustin on July 19 2004?
IN WITNESS WHEREOF, I have hereunto set my hand this 19th day of July 2004
DOCSLA 1 474854.2
4
inca
c-
Pamela Stoker, City Clerk
of the City of Tustin
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