HomeMy WebLinkAboutCC RES 04-70RESOLUTION 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.
Resolution No. 04 -70
Page 1 of 3
PASSED and ADOPTED at a regular meeting of the City Council of the City of
Tustin held on July 19, 2004.
TONY KA A HIMA
Mayor
Fop'. - 2�i
City Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF TUSTIN )
I, Pamela Stoker, City Clerk and ex- officio Clerk of the City Council of the City of Tustin,
California, do hereby certify that the whole number of the members of the City Council of
the City of Tustin is five; that the above and foregoing Resolution No. 04 -70 was duly
passed and adopted at a regular meeting of the Tustin City Council, held on the 19th day
of July, 2004, by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
K,wr I r. dam,,1 0
WTI
.:.
Resolution No. 04 -70
Page 2 of 3
KAWASHIMA, BONE, DAVERT, HAGEN (4)
NONE (0)
NONE 0
THOMAS (1)
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, 1 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?
2004.
IN WITNESS WHEREOF, I have hereunto set my hand this 19th day of July,
Pamela Stoker, City Clerk
of the City of Tustin
Resolution No. 04 -70
Page 3 of 3
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 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 vo -,d. 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?
ROCS LA 1.474853.2
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:
Qualified
Landowner Votes
Votes Cast YES NO
City of Tustin Community Facilities
District No 04 -1 (Tustin Legacy /John 69
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
DOCS LA 1 474854.2
Im
RECORDING REQUESTED BY AND
AFTER RECORDATION RETURN TO:
City Clerk
City of Tustin
300 Centennial Way
Tustin, California 92680
Recorded in Official Recards, Orange County
IIIIBIiiill111liirlli1ll1 111111111111111111169. 00
200400068882210;40am 07129104
115 67 N33 22
0.00 0,00 0.00 0.00 63.00 0.00 0,00 0,00
NOTICE OF SPECIAL TAX LIEN
CITY OF TUSTIN
COMMUNITY FACILITIES DISTRICT NO. 04-1
( TUSTIN LEGACY /JOHN LAING HOMES)
Pursuant to the requirements of Section 3114.5 of the California Streets and Highways
Code and Section 53328.3 of the Mello -Roos Community Facilities Act of 1982 (the "Act'), the
undersigned City Clerk of the City of Tustin (the "City"), hereby gives notice that a lien to secure
payment of a special tax is hereby imposed by the City Council. of the City. The special tax
secured by this lien is authorized to be levied for the purpose of (a) paying the principal of and
interest on bonds, the proceeds of which are being used to finance the facilities described under
the caption "Facilities" on Exhibit A attached hereto and hereby made a part hereof (the
"Facilities "), and (b) providing the services described under the caption "Services" on Exhibit A
attached hereto (the "Services ").
The special tax is authorized to be levied within City of Tustin Community Facilities
District No. 04 -1 (Tustin Legacy /John Laing Homes) (the "Community Facilities District')
which has now been officially formed and the lien of the special tax is a continuing lien which
shall secure each annual levy of the special tax and which shall continue in force and effect until
the special tax obligation is prepaid, permanently satisfied, and canceled in accordance with law
or until the special tax ceases to be levied and a notice of cessation of special tax is recorded in
accordance with Section 53330.5 of the Act.
The rate, method of apportionment, and manner of collection of the authorized special tax
is as set forth in Exhibit B attached hereto and hereby made a part hereof. Conditions under
which the obligation to pay the special tax for the Facilities may be prepaid and permanently
satisfied and the lien of the special tax canceled are as set forth in Exhibit B hereto. The
obligation to pay the special tax for the Services may not be prepaid.
Notice is further given that upon the recording of this notice in the office of the County
Recorder of the County of Orange, the obligation to pay the special tax levy shall become a lien
upon all nonexempt real property within' the Community Facilities District in accordance with
Section 3115.5 of the California Streets and Highways Code.
DOCSIAI:474860.2,
IM
is
The name(s) of the owner(s) and the assessor's tax parcel number(s) of the real property
included within the Community Facilities District and not exempt from the special tax are as set
forth in Exhibit C attached hereto and hereby made a part hereof.
Reference is made to the boundary map of the Community Facilities District recorded at
Book 88 of Maps of Assessment and Community Facilities Districts at Page 49, in the office of
the County Recorder of the County of Orange, which map is now the final boundary map of the
Community Facilities District.
For further information concerning the current and estimated future tax liability of owners
or purchasers of real property subject to this special tax lien, interested persons should contact
the Finance Director of the City of Tustin, 300 Centennial Way, Tustin, California 92680, (714)
573 -3061.
Dated: July 19, 2004
DOCSLA1:4748601
Pamela Stoker, City Clerk
of the City of Tustin
EXHIBIT A
FACILITIES AND SERVICES TO BE FINANCED
Facilities
The types of facilities 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 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.
DOCSLAI:474960.2
A -1
BE
DOCSLA7:474860.2
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
01
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 Year2004 -2005, in an amount determined through the application of the
Rate and Method of Apportionment as described below. All of the real property in CFD No. 04 -1,
unless exempted by law or bythe 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 orboth); 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 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 July 8, 2004
CFD No. 04 -1 Pare 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 any one 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 determined by the CFD Administrator that is
reasonably comparable to the Consumer Price Index for the City of Los Angeles.
"Council" means the City Council of the City, acting as the legislative body of CFD No. 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 — TuslinLegacy /John Laing Homes July 8, 2004
CFD No. 04-1 Page 2
is
Final Subdivison was recorded on or prior to January 1 of the prior Fiscal Year and a
building permit fornew 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 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 All 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 ofDeveloped Property forwhich
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 of CID 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 thatthe ratio of the actual Special Tax B levy to the Maximum Special TaxB 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 Tusdn — TusrinLegacy /Jahn Laing Homes July 8, 2004 -
CFD No. 04-1 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 otherpublic agency, provided that anypmperty
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 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
City of Tustin — TusdnLegacy /John Laing Homes July 8, 2004
CFD No. 04-1 Pare 4
is
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 ofAdministrative 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 of CFD 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 As 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 shallbe 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 — TusrinLegacy/John Laing Homes July 8, 2004
CFD No. 04 -1 Page 5
C. ALQQ M 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
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
$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.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
1 I
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 ofTusdn — TustinLegae}✓John Laing Romer July 8, 2004
CFD No. 04-1 Pare 6
(b). Increase in the Maximum Special Tax
The Fiscal Year 2004 -2005 Maximum Special Tax A, identified in Table 1
above, 'shall notbe 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 TaxB 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 TaxableProperty 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 TAIGA 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 Buydown Requirement for such property as calculated under this Section D.
City of nstin— TustinLegacy /Jahn Laing Homes July 8, 2004
rFn n.. ne -T Page 7
BE
"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 anyresidential 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 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 shalt assign
each building permit identified in such requestto 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 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
City of Tustin — TustinLegacy /John Laing Homes July 8, 2004
CFD No. U-1 Page 8
IM
to below 565 dwelling units, then a letter of Compliance will not be issued and the CFD
Administrator will be duetted to determine if a Special TaxA 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)
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
City of Tustin — TusdnLegacWohn Laing Homo July 8, 2004
CFD No. 04 -1 Page 9
The CFD Administrator shall then review the updated Table 2 and determine 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 C•FD 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 determined 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 pursuantto step 2, then no Special TaxA Buydown will be
required and a Letter of Compliance shall immediatelybe issuedby 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 S.The Special Tax A Buydown Requirement shall be calculated using the
prepayment formula described in Section I: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 I.l shall equal the product of the quotient computed pursuant to step
4 above times the Previously Issued Bonds, as defined in Section I.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 (Iess
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 Buydownpayment, 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 Page 10
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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 CID 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.
City of Tusdn — TustinLegacy /John Laing Homes July 8, 2004
CFD No. 04-1 Page 11
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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.1.
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 of the 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.
City of 7Lsdn— Tustinlegacy /Jahn Laing Homes July 8, 2004
CFD No. 04 -I 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/orprincipal 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
Admnistrator 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 ofredemption 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):
Bondi
plus
plus
plus
less
less
Zedemption Amount
Redemption Premium
Defeasance Amount
Administrative Fees and Expenses
Reserve Fund Credit
Canitalized Interest Credit
Total: equals Prepayment Amount
As of the proposed date of prepayment, the Special Tax A Prepayment Amount
(defined below) shall be calculated as follows:
Para2rauh No.:
Confirm that no Special Tax delinquencies apply to such Assessor's Parcel.
2. ForAssessor'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 Asse'ssor's Parcel as though it was already designated as
Developed Property, based upon such building permit.
City of Tustin — TustinLegacy/John Laing Homes July 8, 2004
CFD No. 04 -1 Page 13
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- 1009A), 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 fast 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 of CFD 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 ").
City of Tustin — TustinLegacy/John Laing Homes July 8, 2004
CFD No. 04 -1 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 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 anAssessor'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 I.1; except that a partial
prepayment shall be calculated according to the following formula:
PP =PsxF.
These terms have the following meaning:
PP = the partial prepayment
PE = the Special Tax A Prepayment Amount calculated according to Section I.1
F = 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 July 8, 2004
CFD No. 04 -1 Page Is
IM
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 amountrequired 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
I.1, and (ii) indicate in the records of CFD No. 04 -1 that there has been a partial prepayment
of the Special Tax A and that a portion of the Special Tax Awith 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.1.
I 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.NCli=uZ2 Tustin. Cit\ TustinMCAS VohnLaing \RMA1Laing_6Final.doe
City of Tusda — TustinLegaWJohn Laing Homes July 8, 2004
CFD No. 04-1 Page 16
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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.
•u:
PROPERTY OWNERS AND ASSESSOR'S PARCEL OR TRACT NUMBERS
Name of Property Owner
DOCS1A7:474860.2
WL Homes LLC
WL Homes LLC
Ism
Assessor's Parcel/Tract Nos.
Assessor's Parcel No. 434 - 062 -18
Tract No. 16474