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HomeMy WebLinkAbout09 CONDUCT A PUBLIC HEARING & HOLD A SPECIAL ELECTION FOR IMPROVEMENT AREA N0.1 OF CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01MEETING DATE: APRIL 17, 2018 TO: JEFFREY C. PARKER, CITY MANAGER FROM: ECONOMIC DEVELOPMENT DEPARTMENT/FINANCE DEPARTMENT SUBJECT: CONDUCT A PUBLIC HEARING AND HOLD A SPECIAL ELECTION FOR IMPROVEMENT AREA NO.1 OF CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES) AND ADOPT VARIOUS RESOLUTIONS AND AN ORDINANCE FORMING THE DISTRICT SUMMARY: Finalize the formation of Community Facilities District No. 2018-01 (Public Services) ("CFD 18-01") and authorize the levy of a special tax within Improvement Area No. 1. RECOMMENDATIONS: It is recommended that the City Council take the following actions: 1) Receive and file the Community Facilities District Report. 2) Conduct a Public Hearing to hear presentations by staff and consultants as well as questions and comments from the public. 3) Adopt Resolution No. 18-20, "A Resolution of the City Council of the City of Tustin, California, Authorizing Formation of City of Tustin Community Facilities District No. 2018-01 (Public Services), Designating Improvement Area No. 1 Therein, and Authorizing the Levy of a Special Tax within said Improvement Area." 4) Adopt Resolution No. 18-22, "A Resolution of the City Council of the City of Tustin, California, Calling a Special Election for the Purpose of Approving a Special Tax in Improvement Area No. 1 of City of Tustin Community Facilities District No. 2018- 01 (Public Services) and Establishment of an Appropriations Limit." 5) Vote to approve the proposition authorizing the levying of a special tax and establishing an annual appropriations limit for CFD 18-01 Improvement Area No. 1, and authorize the Mayor to cast the City's vote on the official ballot for CFD 18- 01 in accordance herewith. Agenda Report — CFD 18-01 April 17, 2018 Page 2 6) Direct the City Clerk to open ballots, announce the results of the election, and to execute the Canvass and Statement of Results of Election. 7) Adopt Resolution No. 18-23, "A Resolution of the City Council of the City of Tustin, California, Declaring the Results of a Special Election Held in Improvement Area No. 1 of the City of Tustin Community Facilities District No. 2018-01 (Public Services) and Directing Recording of a Notice of Special Tax Lien." 8) Approve for first reading Ordinance No 1495, "An Ordinance of the City Council of the City of Tustin, California, Acting as the Legislative Body of the City of Tustin Community Facilities District No. 2018-01 (Public Services) Levying Special Taxes within Improvement Area No. 1 of the City of Tustin Community Facilities District No. 2018-01 (Public Services)." FISCAL IMPACT: The special tax will be for services (not facilities) such as police and fire; recreation program services; maintenance of parks, streets, sidewalks and drainage facilities; and other general City services associated with the development and maintenance of the undeveloped portions of Tustin Legacy. The Rate and Method of Apportionment (RMA) for each Improvement Area establishes the assessment services required for each land use. CORRELATION TO THE STRATEGIC PLAN: This action correlates to the City's Strategic Plan for Economic and Neighborhood Development (Goal A) and Financial Strength (Goal C). BACKGROUND: To date, five (5) CFDs have been formed at Tustin Legacy to help fully fund facilities (Tax A) and operational costs (Tax B) at Tustin Legacy due to the discrepancy in property tax revenue (3% of the basic levy (1.0%) at Tustin Legacy, 10.5% City-wide). Tustin Legacy has significant operational costs that can require more than the 10.5% property tax revenue received City-wide. A breakdown of CFDs formed to date is below: - CFD 04-01 (Tustin Field I and II) c Tax A and B - CFD 06-01 (Villages of Columbus) o Tax A and B - CFD 07-01 (The District) o Tax A and B Agenda Report — CFD 1801 April 17, 2018 Page 3 CFD 13-01 (The Village at Tustin Legacy, Amalfi, Anton Legacy, FLIGHT at Tustin Legacy, TUSD Middle/High School) o Tax B only CFD 14-01 (Greenwood) o Tax A and B The City Council authorized formation of CFD 13-01 in 2013 for services (not facilities) such as police and fire; maintenance of parks, streets, sidewalks and drainage facilities; and other general City services associated with the development and maintenance'of the undeveloped portions of Tustin Legacy. Since 2013, the plan for Tustin Legacy has evolved to include a variety of land uses not previously considered under CFD 13-01 (e.g., hotels and separate commercial uses). A new services CFD is needed to account for known and unknown land uses in the future. Forming CFD 18-01 will fund the same services as described in CFD 13-01 with updated base rates. CFD 18-01 will be broken up into "Improvement Areas." A map of the CFD 18-01 boundaries is shown on Attachments 1; however, the majority of the property is identified as "Future Annexation Parcels." As projects are proposed, they will be analyzed for their impact to City services. This approach intends to ensure that each "Improvement Area" meets the funding levels for the required services. Any property within the boundaries of CFD 13-01 and CFD 18-01 will be released of the CFD 13-01 obligation when the Improvement Area is annexed. Improvement Area No. 1 (IA No. 1) is limited to the Levity at Tustin Legacy ("Lot 19"/Disposition Package 6B) project that the Council approved on February 6, 2018. This property has not yet been conveyed, but the DA and DDA required the developer to acknowledge that a CFD would be in place prior to conveyance. The "Future Annexation Parcels" area is not being liened at this time. Future Improvement Area annexations will be brought back to the Council with their own RMA, but will not need to go through the formation process in order to save time and money. On March 7, 2018 the City Council took the following actions: Accepted and ratified a petition to establish CFD 18-01 and designate IA No. 1. Adopted Resolution No. 18-15, a resolution of intent to establish CFD 18-01, designating IA No.1, and authorizing the levy of special taxes. Pursuant to Government Code section 53326 of the Mello -Roos Community Facilities Act; if there are not 12 registered voters within the boundaries of CFD 18-01 IA No. 1, then any vote is of the landowners within CFD 18-01 IA No. 1. Because the City is the sole landowner within IA No. 1, the Mayor, by way of motion by the City Council, will be casting Agenda Report — CFD 18-01 April 17, 2018 Page 4 the only ballot on the proposition authorizing the levy of special taxes within CFD 18-01 IA No. 1 on the City's behalf. NEXT STEPS: Following tonight's actions, the schedule to complete the formation of CFD 18-01 and IA No. 1 is as follows- - May 1, 2018: Second reading of Ordinance 1495 - May 31, 2018: Special tax in effect Staff is available for any questions the Council may have. ohn . Buchanan Sean Tran9 r of Economic Development/Finance Deputy Director of Finance — Administrative Services / � F, -x , Kenneth Piguee Management Analyst I I Economic Development Attachments: 1. CFD 18-01 Boundary Map 2. Community Facilities District Report 3. Resolution No. 18-20 4. Resolution No. 18-22 5. Official Ballot 6. Canvass and Statement of Results of Special Election 7. Resolution No. 18-23 8. Ordinance No. 1495 ry l0i-p I— Z— SHEET 1 OF 2 PROPOSED BOUNDARIES OF CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES) COUNTY OF ORANGE STATE OF CALIFORNIA (1) Filed in the office of the City Clerk of the City of Assessor Parcels within the Future Annexation Area of City of Tustin Tustin this _-11-,h day of na&" , 2018. Community Facilities District No. 2018-01 (Public Services): 4 30-271 -U4 430-271-89 430-371-21 430-371-56 430-381-42 430-391-46 J 430-2.71-35 430-271-90 430-371-22 30-371-57 430-381-43' 430-391-47 Erica N. Rabe, City Clerk, City of Tustin 430-271-36 430-271-91 430-371-23 430-371-58 'portion 430-391-48 430-271-37 430-271-92 430-371-24 430371-59 430-381-65 430291-49 (2) 1 hereby certify that the within map showing the 430-271-38 430-271-93 430-371-25 430271-60 430-381-66 . 430-391-50 proposed boundaries of City of Tustin Community 430-271-39 430-282-01 430-371-26 430-371-61 430-381-67 430-391-51 Facilities District No. 2018-01 (Public Services), 430-271-49 430-282-07 430-371-27 430-371-62 430-381-68 430-391-52 County of Orange, State of California, was 430-271-50 430-282-13 430-371-28 430-371463 430-381-69 430-391-53 approved by the City Council of the City of Tustin 430-271-51 430-202-14 430-37129 430-371-64 430-381-74 430-391-54 at a regular meeting thereof, held on the ]- 430-27152 430282-15 430-371-30 430-371-65 430-381-75 430-391-55 day of 2018, by its Resolution No. 430-271-53 430-282-16 430-371-31 430-371-66 430-391-03 430-391-56 i -}5 430-271-54 430-282-25 430-371-32 430-371-67 430-391-15 430-391=57 43D-271-55 430-283-02 430-371-33 430-371-68 430-391-19 430-391-58 430-271-70' 430-283-04 _430-371-38 430-371-73 430-391-20 430-391-59 `portion 430-283-05 430-371-39 430-371-74 430-391-21 430-391-60 Erica N- Rabe, City Clerk, City of Tustin 430-271-71 430-283-06 430-371-40 430-371-76 430-391-22 430-391-61 P.; --A rbc= C�v - T -Ta-. 430-271-72 430-283-08 430-371-41 430271-77 430-391-23 430-391-62 (3) Filed this 04 day march 2018, at 430-271-77 430-283-09 430-371-42 430-381-27 430-391-24 430-391-63 of 430-271-78 430-283-10 430-371-43 430-381-28 430-391-25 430-391-64 the hour of •1141 o`clock�m, in Book 430-271-79 430-283-11 430-371-44 430-381-29 430-391-26 430-391-65 lowof Maps of Assessment and 431-271-W 30-283-21 430-371-45 430-381-30 430-391-27 430-391-66 Community Facilities Districts at page 430-271-81 430-283-22 430-371-46 430-381-31 430-391-28 430-391-67 2,2 -Is 041m and as Instrument No. 430-271-82 430-283-23 430-371-47 430-381-32 430-391-29 430-391-66 Zata000 ►02,0101 in the office of the 43D-271-63 430-283-24 430-371-48 430-381-33 430-391-30 430-391-69 County Recorder of the County of Orange, State 430-271-84 430-284-01 430-371-50 430-381-35 430-391-32 430-391-72 of California. 430-2171-5 430-284-04 430-371-51 430-381-38 430-391-42 434-021-30 430-271-86 430-371-18 430-371-52 430-381-39 430-391-43 434061-49 Hugh Nguyen, 430-271-87 430-371-19 430-371-54 430-381-40 430-391-44 County Clerk -Recorder of County of Orange 430-271-88 430-371-20 430-371-55 430-381-41 430-391-45 Armor Parcets w Improvement Area No. 9 of City of Tustin By CornnwAW FacRies District No. 2018-01 (Public Services): Reference is hereby made to the Assessor maps ty 430-381-18 of the County of Orange for a description of the Fee £e,.�� 430-381-44 lines and dimensions of these parcels. Exempt recording requested, per 430-381-45 430-38146. Prepared by David Taussig & Associates, Inc- CA Government Code §6103 } SHEET I2 OF 2 I I�r1l PROPOSED BOUNDARIES OF CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES) COUNTY OF ORANGE STATE OF CALIFORNIA Fa, D \ate F �oF 0 I0ILP Z3 Assessor Parcel Line Future Annexation Area P� Proposed Boundaries of City of Tustin Community Facilities District No. 2018-01 (Public Services) Improvement Area No. 1 Assessor Parcel Line Future Annexation Area P� COMMUNITY FACILITIES DISTRICT REPORT City of Tustin Community Facilities District No. 2018-01 (Public Services) April 11, 2018 COMMUNITY FACILITIES DISTRICT REPORT MELLO-Roos COMMUNITY FACILITIES ACT OF 1982 CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT No. 2018-01 (PUBLIC SERVICES Prepared for CITY oiF TUSTIN 300 Centennial Way Tustin, California 92780 Prepared by DAVID TAUSSIG & ASSOCIATES, INC. 5000 Birch Street, Suite 6000 Newport Beach, California 92600 W.blir'Fnance and Urban Economics TABLE OF CONTENTS Section _ _ Page I. INTRODUCTION.............................................................................................................. I II. PROJECT DESCRIPTION..............................................................................................2 III. DESCRIPTION AND ESTIMATED COST OF PUBLIC SERVICES DISTRICT ...3 A. Description of Proposed Public Services District........................................................3 B. Estimated Cost of Proposed Public Services District..................................................3 IV. BONDED INDEBTEDNESS AND INCIDENTAL EXPENSES...................................4 A. Projected Bond Sales...................................................................................................4 B. Incidental Expenses to be Included in the Annual Levy of Special Taxes..................4 V. RATE AND METHOD OF APPORTIONMENT..........................................................5 VI. BOUNDARIES OF COMMUNITY FACILITIES DISTRICT....................................6 VII. GENERAL TERMS AND CONDITIONS......................................................................7 A. Substitution of Services...............................................................................................7 B. Appeals and Interpretations.........................................................................................7 APPENDICES Appendix A Improvement Area No. 1 Rate and Method of Apportionment Appendix B CFD No. 2018-01 (Public Services) Boundary Map W&DAVID TAUSSIG �J ASSOCIATES WHEREAS, the City of Tustin (hereinafter referred to as the "City") did, pursuant to the provisions of the "Mello -Roos Community Facilities Act of 1982," being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (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 City of Tustin Community Facilities District No. 2018-01 (Public Services), County of Orange, State of California, hereinafter referred to as: "CFD No. 2018-01 (Public Services)"; Currently, CFD No. 2018-01 (Public Services) includes one (1) improvement area: Improvement Area No. 1 ("IA No. I"). Pursuant to Section 53339.3 of the Act, the City hereby designates the property set forth on the Boundary Map as the "Future Annexation Parcels" as parcels to be annexed to CFD No. 2018-01 (Public Services), which parcels may be annexed to the CFD at a future date with the unanimous approval of the owner or owners of each parcel or parcels at the time that parcel or those parcels are annexed. It is understood that the property designated as Future Annexation Parcels will be further subdivided in the future, and that the option to annex any newly subdivided parcel will inure to the benefit of the owner of the newly subdivided parcel. There is no requirement that parcels in the Future Annexation Parcels be annexed into the CFD. To the extent that an owner of a parcel within the Future Annexation Parcels does not choose to annex to IA No. 1, such owner may agree to be designated in a new improvement area, and the designation as Future Annexation Parcels shall not impact such owner's options. The types of Services provided pursuant to this Chapter to those parcels designated as Future Annexation Parcels that agree to annex to the CFD shall be the same public services provided to other parcels within the CFD. Likewise, the special tax imposed upon those parcels designated as the Future Annexation Parcels that agree to annex to any improvement area in the CFD shall be as set forth in Section 7 of: A RESOLUTION NO. 18-15 OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA OF ITS INTENTION TO FORM CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES), DESIGNATING IMPROVEMENT AREA NO. 1 OF CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES) THERIN, AND AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN SAID IMPROVEMENT AREA (hereinafter referred to as the "Resolution of Intention"), that was adopted by the City Council on March 7, 2018. NOW, THEREFORE, the City Clerk of the City of Tustin (the "City Clerk"), the authorized representative of the City, and the appointed responsible officer directed to prepare the CFD Report (the "Report") or cause the Report to be prepared pursuant to the provisions of the Act, does hereby submit this Report. City Of Tustin April 11, 2018 Community Facilities District No. 2018-01 (Public Services) Page l WAVID TAUSSIG �JASSOCIATES CFD No. 2018-01 (Public Services) encompasses approximately 695 gross acres of land in the City of Tustin located within the Tustin Legacy Specific Plan area. A map showing this territory is provided as Appendix B of this Report. CFD No. 2018-01 (Public Services) is currently comprised of one (1) improvement area ("Improvement Area"), Irnprovement Area No. 1 ("IA No. I"), that will consist of approximately 14 acres and permit the development of approximately 218 residential dwelling units ranging in size from 1,357 to 2,964 square feet. A Future Annexable Area has also been identified for CFD No. 2018-01 (Public Services), within which future residential and non-residential property will be able to annex into the CFD on a parcel by parcel basis. Within CFD No. 2018-01 (Public Services), a Special Tax shall be levied only on new development as set forth in the Rate and Method of Apportionment ("RMA") for IA No. 1, attached herewith as Appendix A. City of Tustin April 11, 2018 Community Facilities District No. 2018-01 (Public Services) Page 2 W.AVID TAUSSIG ASSOCIATES A. Description of Proposed Public Services A community facilities district may finance any one or more of the following types of services: police protection services; fire protection and suppression services; ambulance and paramedic services; recreation program services, library services, maintenance services for elementary and secondary school sites and structures, operation and maintenance of museums and cultural facilities; maintenance of parks, parkways (including street lights), and open space; flood and storm protection services, including the operation and maintenance of storm drainage systems and sandstorm protection systems; and services with respect to the removal or remedial action cleanup of hazardous substances. The proposed community facilities district shall provide and finance Public Services, including but not limited to (i) the costs of contracting services, (ii) the maintenance and servicing of police, fire, and emergency response, parks and open space, alley maintenance, street lighting and landscape maintenance, maintenance or upkeep of related facilities, equipment, vehicles, apparatus, and supplies (iii) the salaries and benefits of staff that directly provide such services, and (iv) overhead costs associated with providing such services within the CFD. The Authorized Services, as defined in the Rate and Method of Apportionment, Appendix A, may be financed only to the extent that such services are in addition to those services provided in the City prior to implementation of the Community Facilities District. Again, CFD No. 2018-01 (Public Services) shall only finance the above listed services only to the extent that they are in addition to existing services provided within the boundaries of CFD No. 2018-01 (Public Services) before creation of the CFD and such Authorized Services may not supplant services already available within CFD No. 2018- 01 (Public Services) at creation of said CFD. The Special Taxes required to finance the related annual costs of those public services will be apportioned as described in the Rate and Method of Apportionment of the Special Tax for each Improvement Area of CFD No. 2018-01 (Public Services). B. Estimated Costs of Proposed Public Services The intent of the CFD is to fund the anticipated revenue shortfall in providing the Authorized Services listed above. The maximum special taxes that could be levied presently are identified in the Rate and Method of Apportionment for each Improvement Area of CFD No. 2018-01 (Public Services). The actual amount to be levied will be determined by the City Council on an annual basis. It is anticipated that the cost of administering the CFD in its earlier years will be approximately $5,000 per year. City of Tustin April 11, 2018 Community Facilities District No. 2018-01 (Public Services) Page 3 WDAVCD TRUSSIG J & ASSOCIATES A. Projected Bond Sales CFD No. 2018-01 (Public Services) is not authorized to sell bonds. B. Incidental Expenses to be Included in the Annual Lew of Special 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. As there is no intention or authorization for CFD No. 2018-01 (Public Services) to sell bonds, the incidental expenses to be funded through Special Taxes shall be limited to the costs associated with the creation of the CFD, determination of the amount of Special Taxes, collection of Special Taxes, payment of Special Taxes, or costs otherwise incurred in order to carry out the authorized purposes of the CFD. While the actual cost of administering CFD No. 2018-01 (Public Services) may vary, it is anticipated that the amount of Special Taxes that can be collected will be sufficient to fund the CFD's annual administrative expenses. City of Tustin April 11, 2018 Community Facilities District No. 2018-01 (Public Services) Page 4 Ti , WN 94 M.'' PubEc Finance and Urban Economics Pursuant to Section 53325.3 of the Act, the tax imposed in a CFD "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 authorized services available to each parcel, or other reasonable basis as detertnined 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. The adopted Rate and Method of Apportionment ("RMA") for IA No. 1, attached herewith as Appendix A, provides information sufficient to allow each property owner within CFD No. 2018-01 (Public Services) to estimate the maximum annual Special Tax he or she will be required to pay. The RMA for IA No. 1 requires that all Assessor's Parcels be categorized as Developed Property, Undeveloped Property, Property Owner Association Property, or City Property. The principal assumption inherent in the calculation of Special Taxes as defined in the RMA is that the level of budgetary shortfall impacting the City is the primary result of new development within the City. These determinations are based on an evaluation of the City's recurring costs and revenues. No Special Taxes will be levied on Undeveloped Property, Property Owner Association Property, or City Property. Each Fiscal Year, the Special Tax levy shall be calculated in an amount sufficient to cover the costs required to meet the financial needs for the proposed Authorized Services, but not to exceed the maximum Special Tax for Developed Property. The maximum Special Tax necessary to cover the public service shortfall generated by one (1) residential Dwelling Unit is between $1,408 and $2,717, respectively, for the 2018-19 Fiscal Year. The maximum annual Special Tax that can be levied within the CFD on Developed Property shall increase annually by the greater of the change in the Consumer Price Index during the twelve (12) months prior to December of the previous Fiscal Year and two percent (2.00%), not to exceed four percent (4.00%). Commencing with Fiscal Year 2018-19 and for each following fiscal year, the City Council shall levy the annual special tax proportionately for each Assessor's Parcel of Developed Property at up to 100% of the applicable maximum special tax, until the amount of special taxes equals the special tax requirement. In order to establish the Maximum Special Tax rates for IA No. 1 as set forth in the Rate and Method of Apportionment, David Taussig & Associates, Inc. has relied on information regarding land -use types, geographic location, and Taxable Property provided to it by others. David Taussig & Associates, Inc. has not independently verified such data and disclaims responsibility for the impact of inaccurate data, if any, on the Rate and Method of Apportionment for IA No. 1, including the inability to meet the financial obligations within IA No. 1. City of Tustin April 11, 2018 Community Facilities District No. 2018-01 (Public Services) Page 5 WAVID TAUSSIG �JASSOCIATES The boundaries of CFD No. 2018-01 (Public Services) include all land on which the Special Taxes may be levied. A reduced scale map showing the boundaries of CPD No. 2018-01 (Public Services) is provided as Appendix B. A full scale map is on file with the Orange County Recorder's Office and was recorded on March 22, 2018 at 11:41 am in the Orange County Recorder's Office at Book 106 of Maps of Assessment and Community Facilities Districts at Page 22-28 (Instrument No. 2018000102019), and there has been no change in the boundaries of the Community Facilities District since its formation, nor is any contemplated here. City of Tustin April ll, 2018 Community Facilities District No. 2018-01 (Public Services) Page 6 DAVID TAUSSIG �J &ASSOCIATES A. Substitution of Services The description of the Authorized Services, as set forth herein, is general in their nature. The final nature and location of the specific services to be funded by the CFD will be detennined by the City Council. The actual services funded may show substitutes, in lieu or modifications to the proposed services that benefit the CFD, and any such substitution shall not be a change or modification in the proceedings as long as the services provided are of a type substantially similar to that as set forth in this Report. B. Appeals and Interpretations Any landowner or resident who feels that the amount of the Special Tax levied on his Assessor's Parcel is in error may submit a written appeal to the CFD Administrator. The CFD Administrator shall review the appeal and if the CFD Administrator concurs, the amount of the Special Tax levied shall be appropriately modified through an adjustment to the Special Tax levy in the following Fiscal Year. No refunds shall be given. Interpretations may be made by the Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in the Rate and Method of Apportionment for IA No. 1. City of Tustin April ll, 20,18 Community Facilities District No. 2018-01 (Public Services) Page 7 APPENDIX A IMPROVEMENT AREA NO. 1 OF CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES) RATE AND METHOD OF APPORTIONMENT RATE AND METHOD OF APPORTIONMENT FOR .IMPROVEMENT AREA NO. 1 OF CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES) CITY OF TUSTIN, COUNTY OF ORANGE, STATE OF CALIFORNIA A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels of Taxable Property in Improvement Area No, 1 of City of Tustin Community Facilities District No. 2018-01 (Public Services), City of Tustin, County of Orange, State of California ("CFD No. 2018-01 (lA No. 1)") and collected each Fiscal Year commencing in Fiscal Year 2018-19, in an amount determined by the City Council through the application of the appropriate Special Tax for -Developed Property," as described below. All of the real property in CFD No. 2018-01 (lA No. 1), unless exempted by law or by the provisions hereof, shall be taxed for these 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 in acres 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 in acres shown on the applicable final map, parcel map, condominium plan, or other map or plan recorded with the County. 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, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2018-01 (JA No. 1): the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or any designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs to the City, CFD No. 2018-01 (IA No,1), or any designee thereof of complying with CFD No. 2018-01 (IA No. 1) or obligated persons disclosure requirements associated with the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs to the City, CFD No. 2018-01 (IA No. 1), or any designee thereof related to anappeal of the Special Tax; 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. 2018-01 (IA No. 1) for any other administrative purposes of CFD No. 2018-01 (IA No. 1), including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. City of Tustin .'larch 7, 2018 CFD No. 2018-01 (]A No, 1) Page 1 "Assessor's Parcel" or "Parcel" means a lot or parcel shown on an Assessor's Parcel Map with an assigned Assessor's Parcel number, "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor's Parcel number. "Attached Residential Property" means Assessor's Parcels of Developed Property for which Building Permits have been issued for a Dwelling Unit that shares, or will share, an inside wall with another Dwelling Unit, "Authorized Services" means those services eligible to be funded by CFD No, 2018-01 (IA No. 1), as defined in the Resolution of Formation and authorized to be financed by CFD No, 2018-01 (IA No, I) pursuant to Section 53313 and Section 53313,5 of the Act, CFD No, 201801 (IA No, 1) shall finance Authorized Services only to the extent that they are in addition to those provided in the territory of CFD No. 2018-01 (IA No, 1) before the CFD was created and such Authorized Services may not supplant services already available within CFD No. 2018-01 (IA No, 1) when the CFD was created, "Building Permit" means a permit issued by the City or other governmental agency for the construction of a residential or non-residential building on an Assessor's Parcel, "CFD Administrator" means an official of CFD No. 2018-01 (IA No, 1), or any designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD No. '2018-01 (IA No. 1)" means Improvement Area No. 1 or City of Tustin Community Facilities District No. 2018-01 (Public Services), City of Tustin, County of Orange, State of California. "City" means the City of Tustin, California. "City Council" means the City Council of the City, "City Property" means, for each Fiscal Year, any property within the boundaries of CFD No, 2018-01 (IA No. 1) that is owned by or irrevocably offered for dedication to the City; provided however that any property leased by the City to a private entity and subject to taxation under Section 53340,1 of the Act, as such section may be amended or replaced, shall be taxed and classified in accordance with its use. "Consumer Price Index" means, for each Fiscal Year, the Consumer Price Index published by the U.S. Bureau of Labor Statistics for All items in Los Angeles -Riverside - Orange County, CA, all urban consumers, not seasonally adjusted" index (Series Id; CUURA421 SAO), measured as of the month of December in the calendar year that 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, City of Tustin March 7, 2018 CFD No, 2018-01 (1A No. 1) Page 2 "County" means the County of Orange. "Detached Residential Property" or "SFD" means Assessor's Parcels of Developed Property for which Building Permits have been issued for a Dwelling Unit that is or is expected to be surrounded by freestanding walls and that does not share an inside wall with any other Dwelling Unit, "Developed Property" means, for each Fiscal Year, all Assessor's Parcels for which a Building Permit was issued after January 1, 2018 and on or before May 1 of the Fiscal Year preceding the Fiscal Year for which the Special Taxes are being levied. "Dwelling Unit" means a building or portion thereof designed for and occupied in whole or part as a residence or sleeping place, either permanently or temporarily, by one (1) family and its guests, with sanitary facilities and one (1) kitchen provided within the unit. Boarding or lodging houses, dormitories, and hotels shall not be defined as Dwelling Units unless the land use permit specifies a residential use. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Flat Property" or "Flats" means Attached Residential Property generally characterized as having the majority of living space on a single floor which may overlap other dwelling units above or below within the same building, for which Building Permits have been issued permitting the development of 2- or 3 -story flats, as determined by the CFD Administrator, "Maximum Special Tax" means, for each Fiscal Year, the maximum Special Tax, determined in accordance with Section C, below, that can be levied on any Assessor's Parcel, "Property Owner Association Property" means, for each Fiscal Year, any Assessor's Parcel within the boundaries of CFD No, 2 018 -01 (IA No, 1) that is owned by or irrevocably offered for dedication to a property owner association, including any master or sub - association, not including any such property that is located directly under a residential or non-residential structure. "Proportionately" means that the ratio of the actual annual Special Tax levy to the Maximum Special Tax is equal for all Assessor's Parcels of Developed Property. "Rate and Method of Apportionment" or "RMA" means this Rate and Method of Apportionment of Special Tax, City of Tustin ,March 7, 2018 CFD No, 2018-01 (1.4 No, 1) Page 3 "Resolution of Formation" means the resolution forming CFD No, 2018-01 (IA No. 1), "Special Tax" or "Special Taxes" means the special tax or special taxes to be levied in each Fiscal Year on each Assessor's Parcel of Developed Property to fund the Special Tax Requirement, "Special Tax Requirement" means that amount to be collected in any Fiscal Year for CFD No. 2018-01 (IA No, 1) to pay for certain costs as required to meet the needs of the CFD in that Fiscal Year. The costs to be covered shall be the direct costs for (i) Authorized Services, including the establishment of reserves for future costs of Authorized Services, (ii) Administrative Expenses, and (iii) an amount to cover anticipated delinquencies for the payment of the Special Tax, based on the delinquency rate for the preceding Fiscal Year; less . (iv) a credit for funds available to reduce the annual Special Tax levy, if any, as determined by the CFD Administrator. Under no circumstances shall the Special Tax Requirement include debt service payments for debt financings by CFD No. 2018-01 (IA No, 1), "State" means the State of California, "Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No, 2018-01 (IA No, 1) which are not exempt from the Special Tax pursuant to law or Section E below. "Townhome Property" or "Townhomes" means Attached Residential Property generally characterized as having a direct ground floor private entry where living space occurs on multiple levels of roughly the same proportion and having at least one vertical wall extending from ground to roof dividing it from the adjoining unit, for which Building Permits have been issued permitting the development of townhomes, as determined by the CFD Administrator, "Undeveloped Property" means, for each Fiscal Year, all property not classified as Developed Property, Property Owner Association Property, or City Property. B, ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, all Assessor's Parcels within CFD No. 2018-01 (IA No. 1) shall be classified by the CFD Administrator as Developed Property, Undeveloped Property, Property Owner Association Property, or City Property, and shall be subject to annual Special Taxes in accordance with this Rate and Method of Apportionment as determined by the CFD Administrator pursuant to Sections C and D below. The CFD Administrator's allocation of property to each type of Land Use Class shall be conclusive and binding. However, only Developed Property shall be subject to annual Special Taxes in accordance with the Rate and Method of Apportionment as determined pursuant to Sections C and D below. City of Tustin March 7, 2018 CFD No. 2 018- 01 (IA No, 1) Page 4 C, MAXIMUM SPECIAL TAX RATE 1. Developed Property a. Maximum Special Tax The Maximum Special Tax for Fiscal Year 2018-19 for Developed Property is shown below in Table 1. Under no circumstances shall a Special Tax be levied on additions to existing Dwelling Units. TABLE 1 Maximum Special Taxes for Developed Property For Fiscal Year 2018-19 Community Facilities District No. 2018-01 (IA No. 1) Land Use Class Land Use Fiscal Year 2018-19 Maximum Special Tax 1 FLATS (>— 2,500 SF) $2,416 PER DWELLING UNIT 2 FLATS (2,000 - 2,499 SF) $2,267 PER DWELLING UNIT 3 FLATS (1,500 - 1,999 SF) $1,889 PER DWELLING UNIT 4 FLATS (< 1,500 SF) $1,809 PER DWELLING UNIT 5 SFD (>= 2,800 SF) $2,717 PER DWELLING UNIT 6 SFD (2,500 - 2,799 SF) $2,585 PER DWELLING UNIT 7 SFD (2,200 - 2,499 SF) $2,240 PER DWELLING UNIT 8 SFD (< 2,200 SF) $2,177 PER DWELLING UNIT 9 TOWNHOMES (>= 2,125 SF) $1,852 PER DWELLING UNIT 10 TOWNHOMES (1,875 - 2,124 SF) $1,690 PER DWELLING UNIT 11 TOWNHOMES (1,625 - 1,874 SF) $1,617 PER DWELLING UNIT 12 TOWNHOMES (< 1,625 SF) $1,408 PER DWELLING UNIT b. 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 that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Taxes that can be levied for all Land Use Classes located on that Assessor's Parcel. City of Tustin March 7, 2018 CFD No, 2018-01 (1A No, 1) Page 5 C. Increase in the Maximum Special Tax On each July 1, commencing on July 1, 2019, the Maximum Special Tax for Developed Property shall be increased annually by the greater of the change in the Consumer Price Index during the twelve (12) months prior to December of the previous Fiscal Year and two percent (2.00%), not to exceed four percent(4.00%). 2. Undeveloped Property No Special Taxes shall be levied on Undeveloped Property. 1). METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 201819 and for each following Fiscal Year, the City Council shall levy the annual Special Tax Proportionately for each Assessor's Parcel of Developed Property at up to 100% of the applicable Maximum Special Tax, until the amount of Special Taxes equals the Special Tax Requirement, E. EXEMPTIONS In addition to Undeveloped Property being exempt from annual Special Taxes, no Special Tax shall be levied on City Property or Property Owner Association Property in CFD No. 2018-01 (IA No. 1). However, should an Assessor's Parcel no longer be classified as City Property or Property Owner Association Property, such Assessor's Parcel shall, upon each reclassification, no longer be exempt from Special Taxes. F. APPEALS AND INTERPRETATIONS Any landowner or resident may file a written appeal of the Special Tax on his/her property with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error, The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination, If the CFD Administrator agrees with the appellant, the CFD Administrator shall eliminate or reduce the ,Special Tax on the appellant's property and/or provide a refund to the appellant. If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has thirty (30) days in which to appeal to the City Council by filing a written notice of appeal with the clerk of the City, provided that the appellant is current in his/her payments of Special Taxes. The second appeal must specify the reasons for the appellant's disagreement with the CFD Administrator's determination. The CFD City of Tustin March 7, 2018 CFD No, 2 018- 01 (JA No. 1) Page 6 Administrator may charge the appellant a reasonable fee for processing the appeal. The City may interpret this Rate and Method of Apportionment for purposes of clarifying any ambiguity and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals. Any decision of the City will be final and binding as to all persons. G, MANNER OF COLLECTION The annual Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the City may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary or otherwise advisable to meet its financial obligations for CFD No. 2018-01 (IA No, 1), and may covenant to foreclose and may actually foreclose on delinquent Assessor's Parcels as permitted by the Act. H. FUTURE ANNEXATIONS It is anticipated that additional properties will be annexed to CFD No. 2018-01 from time to time. As each annexation is proposed, an analysis may be prepared to determine the annual cost for providing Authorized Services to such parcels, Based on this analysis, any parcels to be annexed, pursuant to California Government Code Section 53339 et seq. will be assigned the approximate Maximum Special Tax rates when annexed and included in Exhibit A. I. TERM OF SPECIAL TAX The Special Tax shall be levied in perpetuity as necessary to meet the Special Tax Requirement, unless no longer required to pay for Authorized Services as determined at the discretion of the City. City of Tustin Alarch 7, 2018 CFD No, 2 018- 01 (IA No, 1) Page 7 EXHIBIT A IDENTIFICATION OF FUTURE ANNEXATIONS City of Tustin March 7, 2018 CFD No. 2018-01 (IA No. 1) .Page 8 ry l0i-p I— Z— SHEET 1 OF 2 PROPOSED BOUNDARIES OF CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES) COUNTY OF ORANGE STATE OF CALIFORNIA (1) Filed in the office of the City Clerk of the City of Assessor Parcels within the Future Annexation Area of City of Tustin Tustin this _-11-,h day of na&" , 2018. Community Facilities District No. 2018-01 (Public Services): 4 30-271 -U4 430-271-89 430-371-21 430-371-56 430-381-42 430-391-46 J 430-2.71-35 430-271-90 430-371-22 30-371-57 430-381-43' 430-391-47 Erica N. Rabe, City Clerk, City of Tustin 430-271-36 430-271-91 430-371-23 430-371-58 'portion 430-391-48 430-271-37 430-271-92 430-371-24 430371-59 430-381-65 430291-49 (2) 1 hereby certify that the within map showing the 430-271-38 430-271-93 430-371-25 430271-60 430-381-66 . 430-391-50 proposed boundaries of City of Tustin Community 430-271-39 430-282-01 430-371-26 430-371-61 430-381-67 430-391-51 Facilities District No. 2018-01 (Public Services), 430-271-49 430-282-07 430-371-27 430-371-62 430-381-68 430-391-52 County of Orange, State of California, was 430-271-50 430-282-13 430-371-28 430-371463 430-381-69 430-391-53 approved by the City Council of the City of Tustin 430-271-51 430-202-14 430-37129 430-371-64 430-381-74 430-391-54 at a regular meeting thereof, held on the ]- 430-27152 430282-15 430-371-30 430-371-65 430-381-75 430-391-55 day of 2018, by its Resolution No. 430-271-53 430-282-16 430-371-31 430-371-66 430-391-03 430-391-56 i -}5 430-271-54 430-282-25 430-371-32 430-371-67 430-391-15 430-391=57 43D-271-55 430-283-02 430-371-33 430-371-68 430-391-19 430-391-58 430-271-70' 430-283-04 _430-371-38 430-371-73 430-391-20 430-391-59 `portion 430-283-05 430-371-39 430-371-74 430-391-21 430-391-60 Erica N- Rabe, City Clerk, City of Tustin 430-271-71 430-283-06 430-371-40 430-371-76 430-391-22 430-391-61 P.; --A rbc= C�v - T -Ta-. 430-271-72 430-283-08 430-371-41 430271-77 430-391-23 430-391-62 (3) Filed this 04 day march 2018, at 430-271-77 430-283-09 430-371-42 430-381-27 430-391-24 430-391-63 of 430-271-78 430-283-10 430-371-43 430-381-28 430-391-25 430-391-64 the hour of •1141 o`clock�m, in Book 430-271-79 430-283-11 430-371-44 430-381-29 430-391-26 430-391-65 lowof Maps of Assessment and 431-271-W 30-283-21 430-371-45 430-381-30 430-391-27 430-391-66 Community Facilities Districts at page 430-271-81 430-283-22 430-371-46 430-381-31 430-391-28 430-391-67 2,2 -Is 041m and as Instrument No. 430-271-82 430-283-23 430-371-47 430-381-32 430-391-29 430-391-66 Zata000 ►02,0101 in the office of the 43D-271-63 430-283-24 430-371-48 430-381-33 430-391-30 430-391-69 County Recorder of the County of Orange, State 430-271-84 430-284-01 430-371-50 430-381-35 430-391-32 430-391-72 of California. 430-2171-5 430-284-04 430-371-51 430-381-38 430-391-42 434-021-30 430-271-86 430-371-18 430-371-52 430-381-39 430-391-43 434061-49 Hugh Nguyen, 430-271-87 430-371-19 430-371-54 430-381-40 430-391-44 County Clerk -Recorder of County of Orange 430-271-88 430-371-20 430-371-55 430-381-41 430-391-45 Armor Parcets w Improvement Area No. 9 of City of Tustin By CornnwAW FacRies District No. 2018-01 (Public Services): Reference is hereby made to the Assessor maps ty 430-381-18 of the County of Orange for a description of the Fee £e,.�� 430-381-44 lines and dimensions of these parcels. Exempt recording requested, per 430-381-45 430-38146. Prepared by David Taussig & Associates, Inc- CA Government Code §6103 } SHEET I2 OF 2 I I�r1l PROPOSED BOUNDARIES OF CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES) COUNTY OF ORANGE STATE OF CALIFORNIA Fa, D \ate F �oF 0 I0ILP Z3 Assessor Parcel Line Future Annexation Area P� Proposed Boundaries of City of Tustin Community Facilities District No. 2018-01 (Public Services) Improvement Area No. 1 Assessor Parcel Line Future Annexation Area P� APPENDIX B CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES) BOUNDARY MAP urs SHEET 1 of 2 PROPOSED BOUNDARIES OF CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES) COUNTY OF ORANGE STATE OF CALIFORNIA (1) Filed in the office of the City Cleric of the City of Assessor Parcels within the Future Annexation Area of City of Tustin Tustin this -Ain_ day of mu L 2018. Community Facilities District No. 2018-01 (Public Services): 4V -271-U4 430-271-89 430-371-21 430-371-56 430-381-42 430-391-46 430-271-35 430-271-90 430-371-22 30-371-57 430-381-43' 430-391-47 Erica N. Rabe, City Clerk, City of Tustin 430-271-36 430-271-91 430-37123 430-371-58 'portion 430-391-48 430-271-37 430-271-92 430-371-24 430-371-59 430-381-65 430-391-49 (2) 1 hereby certify that the within map showing the 430-271-38 430-271-93 430-371-25 430-371-60 430-381-66 430-391-50 proposed boundaries of City of Tustin Community 430-271-39 430-282-01 430-371-26 430-371-61 430-381-67' 430-391-51 Facilities District No. 2018-01 (Public Services), 430-271-49 430-282-07 430-371-27 430-371-62 430-381-68 430-391-52 County of Orange, State of California, was 430-271-50 430-282-13 430-371-28 430-371-63 430-381-69 430-391-53 approved by the City Council of the City of Tustin 430-271-51 430-282-14 430-371-29 430-371-64 430-381-74 430-391-54 at a regular meeting thereof, held on the ]A 430-271-52 430-282-15 430-371-30 430-371-65 430-381-75 430-391-55 day of YifK h , 2018, by its Resolution No. 430-271-53 430-282-16 430-371-31 430-371-66 430-391-03 430-391-56 430-271-54 430-282-25 430-371-32 430-371-67 430-391-15 430-391-57 430-271-55 430283-02 430-071-33 430-371-68 430-391-19 430-391-58 430-271-70' 430-283-04 430-371-38 430-371-73 430-391-20 430-391-59 l 'pardon 430-283-05 430-371-39 430-371-74 430-391-21 430-391-60 Erica N. Rabe, City Clerk, City of Tustin 430-271-71 430-283-06 430-371-40 430-371-76 430-391-22 430-391-61 Rear `F {-y—.4 0-11= c,e;-T—Ti-. 430-271-72 430-283-08 430-371-41 430-371-77 430-391-23 430-391-62 (3) Filed this day of march 2018, at 430-271-77 430-283-09 430-371-42 430-381-27 430-391-24 430-391-63 ll 430-271-78 430-283-10 430-371-43 430-381-28 430-391-25 430-391-64 the hour of fiI ill o'ciock�m, in Book 430-271-79 430-283-11 430-371-44 430-381-29 430-391-26 430-391-65 ltd of Maps of Assessment and 43:-271-80 430-283-21 430-371-45 430-381-30 430-391-27 430-391-66 Community Facilities Districts at page 430-271-91 430-283-22 430-371-46 430-381-31 430-391-28 430-391-67 zz-iti WFA and as Instrument No. 430-271-82 430-283-23 430-371-47 430-381-32 430-391-29 430-391-68 2-oksmo lozo►g in the office of the 4304-11-63 430-283-24 430-371-48 430-381-33 430-391-30 430-391-69 County Recorder of the County of Orange, State 430-271-84 430-28"1 430-371-50 430-381-35 430-391-32 430-391-72 of California. 430-2715 430-284-04 430-371-51 430-381-38 430-391-42 434-021-30 430-271-86 430-371-18 430-371-52 430-381-39 430-391-43 434-061-49 Hugh Nguyen, 430-271-W 430-371-19 430-371-54 430-381-40 430-391-44 County Clerk -Recorder of County of Orange 430-271-W 430-371-20 430-371-55 430-381-41 430-391-45 Aassssor Preods wil►er kriprovernent Area No. 1 of City of Tustin By Conswumilly Facillftas Diabict No. 2018-01 (Public Services): Reference is hereby made to the Assessor maps ty 430-361-18 of the County of Orange for a description of the Fee 430-381-44 lines and dimensions of these parcels_ Exempt recording requested, per 430-381-45 430-38.1-46 Prepared by David Taussig & Associates, Inc. CA Government Code §6103 SHEET 2 OF 2 i p5'rJOLP PROPOSED BOUNDARIES OF CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES) COUNTY OF ORANGE STATE OF CALIFORNIA Fo, L� AGF F r` ; Rl Assessor Parcel Line Future Annexation Area �J >��� �4 Proposed Boundaries of City of ■ ■ ■ ■ Tustin Community Facilities District No. 2018-01 (Public Services) TITT Improvement Area No. 1 Assessor Parcel Line Future Annexation Area �J >��� �4 RESOLUTION NO. 18-20 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, AUTHORIZING FORMATION OF CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES), DESIGNATING IMPROVEMENT AREA NO. 1 THEREIN, AND AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN SAID IMPROVEMENT AREA WHEREAS, on March 7, 2018, this City Council adopted a resolution (No. 18-15) entitled "Resolution of the City Council of the City of Tustin, California, of its Intention to Form City of Tustin Community Facilities District No. 2018-01 (.Public Services), Designating Improvement Area No. 1 of City of Tustin Community Facilities District No. 2018-01 (Public Services) therein, and Authorizing the Levy of a Special Tax within said Improvement Area" (the "Resolution of Intention"), stating its intention to form the "City of Tustin Community Facilities District No. 2018-01 (Public Services)" (the "CFD") under the Mello -Roos Community Facilities Act of 1982, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing at Section 53311, of the California Government Code (the "Act"); and WHEREAS, the Resolution of Intention, incorporating a map of the proposed boundaries of the CFD and Improvement Area No. 1 (the "Improvement Area"), and stating the public services to be provided and the rate and method of apportionment of the special tax to be levied within the CFD to pay for the public services, is on file with the City Clerk and the provisions thereof are incorporated herein by this reference as if fully set forth herein; and WHEREAS, on this date, this City Council held a noticed public hearing as required by the Act and the Resolution of Intention relative to the proposed formation of the CFD; and WHEREAS, at the hearing all interested persons desiring to be heard on all matters pertaining to the formation of the CFD, the creation of the Improvement Area therein, the public services to be provided therein and the levy of such special tax were heard and a full and fair hearing was held; and WHEREAS, at the hearing evidence was presented to this City Council on such matters before it, including a special report (the "CFD Report") as to the public services to be provided through the CFD and the estimated costs thereof, a copy of which is on file with the City Clerk, and this City Council at the conclusion of said hearing is fully advised in the premises; and WHEREAS, written protests have not been filed with the City Clerk against the formation of the CFD, the creation of the Improvement Area therein, the furnishing of specified types of public services, or the rate and method of apportionment of the special taxes by 50% or more of the registered voters residing within the territory of the CFD or the Improvement Area or property owners of one-half or more of the area of land within the CFD or the Improvement Area and not exempt from the proposed special taxes; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Tustin as follows: Section 1. Recitals. The foregoing recitals are true and correct. Section 2. No Majority Protest. The proposed special tax to be levied within the CFD has not been precluded by majority protest pursuant to section 53324 of the Act. Section 3. Prior Proceedings Valid. All prior proceedings taken by this City Council in connection with the establishment of the CFD, and the Improvement Area therein, and the levy of the special tax have been duly considered and are hereby found and determined to be valid and in conformity with the Act. Section 4. Local Goal and Policies. The City Council has approved local goals and policies for community facilities districts of the City (Goals and Policies), and this City Council hereby finds and determines that the CFD is in conformity with said Goals and Policies. Section 5. Name of CFD. The community facilities district designated "City of Tustin Community Facilities District No. 2018-01 (Public Services)" and consists of Improvement Area No. 1, is hereby established pursuant to the Act. Section 6. Boundaries of CFD. The boundaries of the CFD and the Improvement Area therein, as set forth in the map of the CFD heretofore recorded in the Orange County Recorder's Office on March 22, 2018, at 11:41 a.m., in Book 106 of Maps of Assessment and Community Facilities Districts at Pages 22 to 23, are hereby approved, are incorporated herein by reference and shall be the boundaries of the CFD and the Improvement Area. Section 7. Description of Services and Facilities. The type of public services (the "Services") proposed to be financed by the CFD and the Improvement Area, pursuant to the Act shall consist of those items shown in Exhibit A hereto and by this reference incorporated herein. Section 8. Special Tax, a. Except to the extent that funds are otherwise available to the CFD to pay for the Services, a special tax (the "Special Tax") sufficient to pay the costs thereof, secured by the recordation of a continuing lien against all non-exempt real property in the CFD, is intended to be levied annually within the Improvement Area of the CFD, and collected in the same manner as ordinary ad valorem property taxes or in such other manner as may be prescribed by this City Council. b. The proposed rate and method of apportionment of the Special Tax among the parcels of the Improvement Area within the CFD, in sufficient detail to allow each landowner within the proposed CFD to estimate the maximum amount such owner will have to pay, are shown in Exhibit B attached hereto and hereby incorporated herein. c. In no circumstances shall the special tax levied against any parcel used for private residential purposes (as defined in the Act), if any, be increased as a consequence of delinquency of default by the owner of any other parcel or parcels with the CFD by more than 10 percent. Section 9. Responsible Official. The Director of Finance, 300 Centennial Way, Tustin, CA 92780, telephone number (714) 573-3060 is the officer of the City who will be responsible for preparing annually a current roll of the levy of the Special Tax obligations by assessor's parcel number and who will be responsible for estimating future levies of the Special Tax. Section 10. Tax Lien. 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 Improvement Area of the CFD and this lien shall continue in force and effect until the Special Tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the Special Tax by the City ceases. Section 11. Appropriations Limit. In accordance with the Act, the annual appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, of the Improvement Area is hereby preliminarily established at $4,000,000, and such appropriations limit shall be submitted to the voters of the CFD as hereafter provided. The proposition establishing such annual appropriations limit shall become effective if approved by the qualified electors voting thereon and shall be adjusted in accordance with the applicable provisions of the Act and the Constitution. Section 12. Election. Pursuant to the Act, the proposition of the levy of the Special Tax and the proposition of the establishment of the appropriations limit specified above shall be submitted to the qualified electors of the CFD at an election the time, place and conditions of which election shall be as specified by a separate resolution of this City Council. All of the approvals, consents, and authorizations provided in this Resolution shall be contingent upon the unanimous approval by the qualified electors of the CFD, and the Improvement Area therein, of the levy of the special tax and the establishment of the appropriations limit specified in Section 11. If, and to the extent, the levy of the special and the establishment of the appropriations limit are not unanimously approved by all qualified electors, voting by improvement area, the approvals, consents, and authorizations set forth herein shall become null and void ab inifio. Section 13. Effective Date. This resolution shall take effect upon its adoption. APPROVED and ADOPTED at a meeting of the City Council of the City of Tustin on April 17, 2018. ELWYN A. MURRAY, Mayor ATTEST: ERICA N. RABE, City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF TUSTIN ) I, Erica N. Rabe, 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 18-20 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 17th day of April, 2018 by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: ERICA N. RABE, City Clerk EXHIBIT A CITY OF TUSTIN Community Facilities District No. 2018-01 (Public Services) DESCRIPTION OF AUTHORIZED SERVICES It is intended that Improvement Area No. 1 will be eligible to finance any, all or any portion of the services described in Section 53313 of the Act including but not limited to police protection services; fire protection services; ambulance and paramedic services; recreation program services; maintenance of parks, parkways, and open space; flood and storm protection; and street and sidewalk maintenance (collectively, the "Services"). EXHIBIT B CITY OF TUSTIN Community Facilities District No. 2018-01 (Public Services) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR IMPROVEMENT AREA NO. RATE AND METHOD OF APPORTIONMENT FOR IMPROVEMENT AREA NO, 1 OF CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES) CITY OF TUSTIN, COUNTY OF ORANGE, STATE OF CALIFORNIA A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels of Taxable Property in Improvement Area No. 1 of City of Tustin Community Facilities District No. 2018-01 (Public Services), City of Tustin, County of Orange, State of California ("CFD No. 2018-01 (IA No. 1)") and collected each Fiscal Year commencing in Fiscal Year 2018-19, in an amount determined by the City Council through the application of the appropriate Special Tax for "Developed Property," as described below. All of the real property in CFD No. 2018-01 (IA No. 1), unless exempted by law or by the provisions hereof, shall be taxed for these 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 in acres 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 in acres shown on the applicable final map, parcel map, condominium plan, or other map or plan recorded with the County. 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, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2018-01 (1A No. 1): the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or any designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs to the City, CFD No. 2018-01 (1A No. 1), or any designee thereof of complying with CFD No. 2018-01 (IA No. 1) or obligated persons disclosure requirements associated with the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs to the City, CFD No. 2018-01 (IA No. 1), or any designee thereof related to an appeal of the Special Tax; 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. 2018-01 (IA No. 1) for any other administrative purposes of CFD No. 2018-01 (IA No. 1), including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. City of Tustin March 7, 2018 CFD No, 2018-01 (I4 No. 1) Page I "Assessor's Parcel" or "Parcel" means a lot or parcel shown on an Assessor's Parcel Map with an assigned Assessor's Parcel number. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor's Parcel number. "Attached Residential Property" means Assessor's Parcels of Developed Property for which Building Permits have been issued for a Dwelling Unit that shares, or will share, an inside wall with another Dwelling Unit. "Authorized Services" means those services eligible to be funded by CFD No. 2018-01 (IA No. 1), as defined in the Resolution of Formation and authorized to be financed by CFD No, 2018-01 (IA No. 1) pursuant to Section 53313 and Section 53313.5 of the Act. CFD No. 2018-01 (IA No. 1) shall finance Authorized Services only to the extent that they are in addition to those provided in the territory of CFD No. 2018-01 (IA No. 1) before the CFD was created and such Authorized Services may not supplant services already available within CFD No. 2018-01 (IA No, 1) when the CFD was created. "Building Permit" means a permit issued by the City or other governmental agency for the construction of a residential or non-residential building on an Assessor's Parcel, 11CFD Administrator" means an official of CFD No. 2018-01 (IA No. 1), or any designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. 41CFD No. 2018-01 (IA No. 1)" means Improvement Area No, 1 or City of Tustin Community Facilities District No. 2018-01 (Public Services), City of Tustin, County of Orange, State of California. "City" means the City of Tustin, California. "City Council" means the City Council of the City. "City Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 201801 (IA No. 1) that is owned by or irrevocably offered for dedication to the City; provided however that any property leased by the City to a private entity and subject to taxation under Section 53340.1 of the Act, as such section may be amended or replaced, shall be taxed and classified in accordance with its use. "Consumer Price Index" means, for each Fiscal Year, the Consumer Price Index published by the U.S. Bureau of Labor Statistics for All items in Los Angeles -Riverside - Orange County, CA, all urban consumers, not seasonally adjusted" index (Series Id: CUURA421 SAO), measured as of the month of December in the calendar year that 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. City of Tustin March 7, 2018 CFD No. 2018-01 (M No. IJ Page 2 "County" means the County of Orange. "Detached Residential Property" or "SFD" means Assessor's Parcels of Developed Property for which Building Permits have been issued for a Dwelling Unit that is or is expected to be surrounded by freestanding walls and that does not share an inside wall with any other Dwelling Unit. "Developed Property" means, for each Fiscal Year, all Assessor's Parcels for which a Building Permit was issued after January 1, 2018 and on or before May 1 of the Fiscal Year preceding the Fiscal Year for which the Special Taxes are being levied. "Dwelling Unit" means a building or portion thereof designed for and occupied in whole or part as a residence or sleeping place, either permanently or temporarily, by one (1) family and its guests, with sanitary facilities and one (1) kitchen provided within the unit. Boarding or lodging houses, dormitories, and hotels shall not be defined as Dwelling Units unless the land use permit specifies a residential use. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Flat Property" or "Flats" means Attached Residential Property generally characterized as having the majority of living space on a single floor which may overlap other dwelling units above or below within the same building, for which Building Permits have been issued permitting the development of 2- or 3 -story flats, as determined by the CFD Administrator. "Maximum Special Tax" means, for each Fiscal Year, the maximum Special Tax, determined in accordance with Section C, below, that can be levied on any Assessor's Parcel. "Property Owner Association Property" means, for each Fiscal Year, any Assessor's Parcel within the boundaries of CFD No. 201801 (IA No. 1) that is owned by or irrevocably offered for dedication to a property owner association, including any master or sub - association, not including any such property that is located directly under a residential or non-residential structure. "Proportionately" means that the ratio of the actual annual Special Tax levy to the Maximum Special. Tax is equal for all Assessor's Parcels of Developed Property. "Rate and Method of Apportionment" or "RMA" .means this Rate and Method of Apportionment of Special Tax. City of Tustin Alarch 7, 2018 CFD No. 2018-01 (IA No, 1) Page 3 "Resolution of Formation" means the resolution forming CFD No. 2018-01 (IA No, 1), "Special Tax" or "Special Taxes" means the special tax or special taxes to be levied in each Fiscal Year on each Assessor's Parcel of Developed Property to fund the Special Tax Requirement. "Special Tax Requirement" means that amount to be collected in any Fiscal Year for CFD No, 2018-01 (IA No, 1) to pay for certain costs as required to meet the needs of the CFD in that Fiscal Year. The costs to be covered shall be the direct costs for (i) Authorized Services, including the establishment of reserves for future costs of Authorized Services, (ii) Administrative Expenses, and (iii) an amount to cover anticipated delinquencies for the payment of the Special Tax, based on the delinquency rate for the preceding Fiscal Year; less (iv) a credit for funds available to reduce the annual Special Tax levy, if any, as determined by the CFD Administrator, Under no circumstances shall the Special Tax Requirement include debt service payments for debt financings by CFD No. 2018-01 (IA No, 1). "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No, 2018-01 (IA No. 1) which are not exempt from the Special Tax pursuant to law or Section E below. "Townhome Property" or "Townhomes" means Attached Residential Property generally characterized as having a direct ground floor private entry where living space occurs on multiple levels of roughly the same proportion and having at least one vertical wall extending from ground to roof dividing it from the adjoining unit, for which Building Permits have been issued permitting the development of townhomes, as determined by the CFD Administrator, "Undeveloped Property" means, for each Fiscal Year, all property not classified as Developed Property, Property Owner Association Property, or City Property. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, all Assessor's Parcels within CFD No. 2018-01 (IA No. 1) shall be classified by the CFD Administrator as Developed Property, Undeveloped Property, Property Owner Association Property, or City Property, and shall be subject to annual Special Taxes in accordance with this Rate and Method of Apportionment as determined by the CFD Administrator pursuant to Sections C and D below. The CFD Administrator's allocation of property to each type of Land Use Class shall be conclusive and binding. However, only Developed Property shall be subject to annual Special Taxes in accordance with the Rate and Method of Apportionment as determined pursuant to Sections C and D below. City of Tustin March 7, 2018 CFD No. 2018-01 (IA No. 1) Page 4 C. MAXIMUM SPECIAL TAX RATE 1. Developed Property a. Maximum Special Tax The Maximum Special Tax for Fiscal Year 2018-19 for Developed Property is shown below in Table 1. Under no circumstances shall a Special Tax be levied on additions to existing Dwelling Units. TABLE 1 Maximum Special Taxes for Developed Property For Fiscal Year 2.018-19 Community Facilities District No. 2018-01 (IA No. 1) Land Use Class Land Use Fiscal Year 2018-19 Maximum Special Tax 1 FLATS (>= 2,500 SF) $2,416 PER DWELLING UNIT 2 FLATS (2,000 - 2,499 SF) $2,267 PER DWELLING UNIT 3 FLATS (1,500 - 1,999 SF) $1,889 PER DWELLING UNIT 4 FLATS (< 1,500 SF) $1,809 PER DWELLING UNIT 5 SFD (>= 2,800 SF) $2,717 PER DWELLING UNIT 6 SFD (2,500 - 2,799 SF) $2,585 PER DWELLING UNIT 7 SFD (2,200 - 2,499 SF) $2,240 PER DWELLING UNIT 8 SFD (< 2,200 SF) $2,177 PER DWELLING UNIT 9 TOWNHOMES (>= 2,125 SF) $1,852 PER DWELLING UNIT 10 TOWNHOMES (1,875 - 2,124 SF) $1,690 PER DWELLING UNIT 11 TOWNHOMES (1,625 - 1,874 SF) $1,617 PER DWELLING UNIT 12 TOWNHOMES (< 1,625 SF) $1,408 PER DWELLING UNIT b. 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 that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Taxes that can be levied for all Land Use Classes located on that Assessor's Parcel. City of Tustin March 7, 2018 CFD No, 201801 (1A No, 1) Page 5 C. Increase in the Maximum Special Tax On each July 1, commencing on July 1, 2019, the Maximum Special Tax for Developed Property shall be increased annually by the greater of the change in the Consumer Price Index during the twelve (12) months prior to December of the previous Fiscal Year and two percent (2.00%), not to exceed four percent (4.00%). 2. Undeveloped Property No Special Taxes shall be levied on Undeveloped Property. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2018-19 and for each following Fiscal Year, the City Council shall levy the annual Special Tax Proportionately for each Assessor's Parcel of Developed Property at up to 100% of the applicable Maximum Special Tax, until the amount of Special Taxes equals the Special Tax Requirement. E. EXEMPTIONS In addition to Undeveloped Property being exempt from annual Special Taxes, no Special Tax shall be levied on City Property or Property Owner Association Property in CFD No, 2018-01 (IA No, 1). However, should an Assessor's Parcel no longer be classified as City Property or Property Owner Association Property, such Assessor's Parcel shall, upon each reclassification, no longer be exempt from Special Taxes. F. APPEALS AND INTERPRETATIONS Any landowner or resident may file a written appeal of the Special Tax on his/her property with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall eliminate or reduce the Special Tax on the appellant's property and/or provide a refund to the appellant. - If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has thirty (30) days in which to appeal to the City Council by filing a written notice of appeal with the clerk of the City, provided that the appellant is current in his/her payments of Special Taxes. The second appeal must specify the reasons for the appellant's disagreement with the CFD Administrator's determination. The CFD Cary of Tustin March 7, 2018 CFD No. 201801 (IQ No, 1) Page 6 Administrator may charge the appellant a reasonable fee for processing the appeal. The City may interpret this Rate and Method of Apportionment for purposes of clarifying any ambiguity and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals, Any decision of the City will be final and binding as to all persons. G. MANNER OF COLLECTION The annual Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the City may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary or otherwise advisable to meet its financial obligations for CFD No. 2018-01 (IA No. 1), and may covenant to foreclose and may actually foreclose on delinquent Assessor's Parcels as permitted by the Act, H. FUTURE ANNEXATIONS It is anticipated that additional properties will be annexed to CFD No. 2018-01 from time to time. As each annexation is proposed, an analysis may be prepared to determine the annual cost for providing Authorized Services to such parcels. Based on this analysis, any parcels to be annexed, pursuant to California Government Code Section 53339 et seq. will be assigned the approximate Maximum Special Tax rates when annexed and included in Exhibit A. I. TERM OF SPECIAL TAX The Special Tax shall be levied in perpetuity as necessary to meet the Special Tax Requirement, unless no longer required to pay for Authorized Services as determined at the discretion of the City. City of Tustin March 7, 2018 CFD No. 20.18-01 (14 No, 1) Page 7 EXHIBIT A IDENTIFICATION OF FUTURE ANNEXATIONS City of Tustin March 7, 2018 CFD No, 2018-01 (IA No. 1) Page 8 ry l0i-p I— Z— SHEET 1 OF 2 PROPOSED BOUNDARIES OF CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES) COUNTY OF ORANGE STATE OF CALIFORNIA (1) Filed in the office of the City Clerk of the City of Assessor Parcels within the Future Annexation Area of City of Tustin Tustin this _-11-,h day of na&" , 2018. Community Facilities District No. 2018-01 (Public Services): 4 30-271 -U4 430-271-89 430-371-21 430-371-56 430-381-42 430-391-46 J 430-2.71-35 430-271-90 430-371-22 30-371-57 430-381-43' 430-391-47 Erica N. Rabe, City Clerk, City of Tustin 430-271-36 430-271-91 430-371-23 430-371-58 'portion 430-391-48 430-271-37 430-271-92 430-371-24 430371-59 430-381-65 430291-49 (2) 1 hereby certify that the within map showing the 430-271-38 430-271-93 430-371-25 430271-60 430-381-66 . 430-391-50 proposed boundaries of City of Tustin Community 430-271-39 430-282-01 430-371-26 430-371-61 430-381-67 430-391-51 Facilities District No. 2018-01 (Public Services), 430-271-49 430-282-07 430-371-27 430-371-62 430-381-68 430-391-52 County of Orange, State of California, was 430-271-50 430-282-13 430-371-28 430-371463 430-381-69 430-391-53 approved by the City Council of the City of Tustin 430-271-51 430-202-14 430-37129 430-371-64 430-381-74 430-391-54 at a regular meeting thereof, held on the ]- 430-27152 430282-15 430-371-30 430-371-65 430-381-75 430-391-55 day of 2018, by its Resolution No. 430-271-53 430-282-16 430-371-31 430-371-66 430-391-03 430-391-56 i -}5 430-271-54 430-282-25 430-371-32 430-371-67 430-391-15 430-391=57 43D-271-55 430-283-02 430-371-33 430-371-68 430-391-19 430-391-58 430-271-70' 430-283-04 _430-371-38 430-371-73 430-391-20 430-391-59 `portion 430-283-05 430-371-39 430-371-74 430-391-21 430-391-60 Erica N- Rabe, City Clerk, City of Tustin 430-271-71 430-283-06 430-371-40 430-371-76 430-391-22 430-391-61 P.; --A rbc= C�v - T -Ta-. 430-271-72 430-283-08 430-371-41 430271-77 430-391-23 430-391-62 (3) Filed this 04 day march 2018, at 430-271-77 430-283-09 430-371-42 430-381-27 430-391-24 430-391-63 of 430-271-78 430-283-10 430-371-43 430-381-28 430-391-25 430-391-64 the hour of •1141 o`clock�m, in Book 430-271-79 430-283-11 430-371-44 430-381-29 430-391-26 430-391-65 lowof Maps of Assessment and 431-271-W 30-283-21 430-371-45 430-381-30 430-391-27 430-391-66 Community Facilities Districts at page 430-271-81 430-283-22 430-371-46 430-381-31 430-391-28 430-391-67 2,2 -Is 041m and as Instrument No. 430-271-82 430-283-23 430-371-47 430-381-32 430-391-29 430-391-66 Zata000 ►02,0101 in the office of the 43D-271-63 430-283-24 430-371-48 430-381-33 430-391-30 430-391-69 County Recorder of the County of Orange, State 430-271-84 430-284-01 430-371-50 430-381-35 430-391-32 430-391-72 of California. 430-2171-5 430-284-04 430-371-51 430-381-38 430-391-42 434-021-30 430-271-86 430-371-18 430-371-52 430-381-39 430-391-43 434061-49 Hugh Nguyen, 430-271-87 430-371-19 430-371-54 430-381-40 430-391-44 County Clerk -Recorder of County of Orange 430-271-88 430-371-20 430-371-55 430-381-41 430-391-45 Armor Parcets w Improvement Area No. 9 of City of Tustin By CornnwAW FacRies District No. 2018-01 (Public Services): Reference is hereby made to the Assessor maps ty 430-381-18 of the County of Orange for a description of the Fee £e,.�� 430-381-44 lines and dimensions of these parcels. Exempt recording requested, per 430-381-45 430-38146. Prepared by David Taussig & Associates, Inc- CA Government Code §6103 } SHEET I2 OF 2 I I�r1l PROPOSED BOUNDARIES OF CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES) COUNTY OF ORANGE STATE OF CALIFORNIA Fa, D \ate F �oF 0 I0ILP Z3 Assessor Parcel Line Future Annexation Area P� Proposed Boundaries of City of Tustin Community Facilities District No. 2018-01 (Public Services) Improvement Area No. 1 Assessor Parcel Line Future Annexation Area P� RESOLUTION NO. 18-22 A RESOLUTION OF THE CITY COUNCIL. OF THE CITY OF TUSTIN, CALIFORNIA, CALLING A SPECIAL ELECTION FOR THE PURPOSE OF APPROVING A SPECIAL TAX IN IMPROVEMENT AREA NO. 1 OF CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT 2018-01 (PUBLIC SERVICES) AND ESTABLISHMENT OF AN APPROPRIATIONS LIMIT WHEREAS, on this date, this City Council adopted Resolution No. 18-20 entitled "A Resolution of the City Council of the City of Tustin Authorizing Formation of City of Tustin Community Facilities District No. 2018-01 (Public Services), Designating Improvement Area No. 1 Therein, and Authorizing the Levy of a Special Tax Within Said Improvement Area" (the "Resolution of Formation"), ordering the formation of City of Tustin Community Facilities District No. 2018-01 (Public Services) (the "CFD"), designating Improvement Area No. 1 (the "Improvement Area"), authorizing the levy of a special tax on property within the Improvement Area of the CFD and preliminarily establishing an appropriations limit for the Improvement Area of the CFD; and WHEREAS, a copy of the Resolution of Formation is on file with the City Clerk and incorporated herein by reference; and WHEREAS, pursuant to the Resolution of Formation, the proposition of the levy of a special tax within the Improvement Area of the CFD shall be submitted to the qualified electors of such Improvement Area at a special election as required by the Act; and WHEREAS, because the boundaries of the CFD and Improvement Area therein currently include parcels of land owned by the City that will be subject to the Special Tax pursuant to Government Code Section 53340.1, the City will be the only landowner qualified to cast a ballot as an elector at said special election pursuant to Government Code Section 53326. Prior to adoption of the Resolution of Formation, the City submitted a ballot, voting in favbr of the proposition identified on the ballot. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Tustin hereby finds, determines, resolves, and orders as follows: Section 1. Pursuant to the Act, the proposition to levy special taxes on property within the Improvement Area of the CFD in accordance with the rate and method of apportionment of special tax specified in the Resolution of Formation ("Proposition") shall be submitted to the qualified electors of the Improvement Area. The form of the Proposition is attached as Exhibit "A." Section 2. This City Council hereby finds that fewer than 12 persons have been registered to vote within the territory of the Improvement Area of the CFD for each of the ninety (90) days preceding the close of the public hearing heretofore conducted and concluded by this City Council for the purposes of these proceedings. Accordingly, pursuant to the Act, this City Council finds that for purposes of these proceedings the qualified electors are the landowners within the Improvement Area of the CFD and that the vote shall be by said landowners or their authorized representatives, each having one vote for each acre or portion thereof such landowner owns in the Improvement Area of the CFD as of the close of said public hearing. Section 3, This City Council hereby calls a special election to consider the Proposition, which election shall be held in the City Council chambers immediately following adoption of this Resolution. The City Clerk (the Clerk) is hereby designated as the official to conduct said election. It is hereby acknowledged that the Clerk has on file the Resolution of Formation, a certified map of the proposed boundaries of the Improvement Area of the CFD, and a sufficient description to allow the Clerk to determine the boundaries of the Improvement Area of the CFD. The voted ballots shall be returned to the Clerk immediately following the adoption of this Resolution. Section 4. This City Council hereby further finds that a provision of Section 53326 of the Act requiring a minimum of 90 days following the adoption of the Resolution of Formation to elapse before said special election is for the protection of the qualified electors of the Improvement Area of the CFD. A written waiver executed by all of the qualified electors of the Improvement Area of the CFD approving a shortening of the time for said special election to expedite the process of formation of the Improvement Area of the CFD and waiving any requirements for analysis and arguments in connection with the election has been received. Accordingly, this City Council finds and determines that said qualified electors have been fully apprised of and have agreed to the shortened time for the election and waiver of analysis and arguments and have thereby been fully protected in these. proceedings. This City Council also finds and determines that the Clerk has concurred in the shortened time for the election. Section 5. Pursuant to the Act, the election shall be conducted by hand -delivered ballot. Section 6. This City Council acknowledges that the Clerk has caused to be delivered to each of the qualified electors of the Improvement Area of the CFD a ballot in the form set forth in Exhibit "A" hereto. Each ballot indicates the number of votes to be cast by the respective landowner to which it pertains. Each ballot was accompanied by all supplies and written instructions necessary for the use and return of the ballot. The envelope to be used to return the ballot was enclosed with the ballot, had the return postage prepaid, and contained the following: (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 authorized representative of the landowner entitled to vote and is the person whose name appears on the envelope, (c) the printed name, signature and address of the voter, (d) the date of signing and place of execution of the declaration pursuant to clause (b) above, and (e) a notice that the envelope contains an official ballot and is to be opened only by the canvassing official. Analysis and arguments and publication of notice of the election with respect to the ballot measures are hereby waived, as provided in Section 53327 of the Act. Section 7. The Clerk shall accept the ballots of the qualified electors in the meeting room of the Council Chambers upon and prior to the adoption of this Resolution, whether said ballots be personally delivered or received by mail. The Clerk shall have available ballots which may be marked at said location on the election day by said qualified electors. Section 8. The Clerk is hereby directed to cause to have published in a newspaper of general circulation circulating within the Improvement Area of the CFD a copy of this Resolution, as soon as possible after the date of adoption of this Resolution. Section 9. This Resolution shall take effect immediately upon its adoption. Section 10. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions. APPROVED and ADOPTED at a meeting of the City Council of the City of Tustin on April 17, 2018 ELWYN A. MURRAY, Mayor ATTEST: ERICA N. RABE, City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF TUSTIN } I, Erica N. Rabe, 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 18-22 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 171h day of April, 2018 by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: ERICA N. RABE, City Clerk EXHIBIT A OFFICIAL BALLOT CITY OF TUSTIN Community Facilities District No.2018-01 (Public Services) OFFICIAL BALLOT SPECIAL TAX ELECTION This ballot is for a special, landowner election. You must return this ballot in the enclosed postage paid envelope to the office of the City Clerk of the City of Tustin no later than the hour of 7:00 p.m. on Tuesday, April 17, 2018, either by mail or in person. The City Clerk's office is located at 300 Centennial Way, Tustin, CA 92780. To vote, mark a cross (X) on the voting line after the word "YES" or after the word "NO". All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void. If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of Tustin and obtain another. BALLOT MEASURE: Shall the City of Tustin (the "City") be authorized to annually levy a special tax solely on lands within Improvement Area No. 1 (the "Improvement Area") of City of Tustin Community Facilities District No. 2018-01 (Public Services) (the "CFD") in accordance with the Rate and Method of Apportionment attached to the Resolution of Formation, commencing in the City's fiscal year 201819, to pay for the public services described in the proceedings to form the CFD and the Improvement Area therein (herein, "Services") including to pay the costs of the City in administering the CFD and the Improvement Area therein, with the amount of money to be raised annually to initially equal $429,000, and shall the annual appropriations limit of the Improvement Area be established in the amount of $4,000,000? YES: NO: By execution in the space provided below, you also indicate your waiver of any and all time limits and timeframes pertaining to the'conduct of the election, any and all notice requirements, any and all publication requirements, timing of any and all recording requirements, any and all requirements for form and content of the ballot, notice of and analysis and arguments with respect to the ballot measure, as such waivers are described and permitted by Sections 53326(a) and 53327(b) of the California Government Code, Acres 15 Number of Votes: 15 Property Owner: City of Tustin Mayor CITY OF TUSTIN Improvement Area No. 1 Community Facilities District No.2018-01 (Public Services) CANVASS AND STATEMENT OF RESULTS OF ELECTION 1 hereby certify that on April 17, 2018, 1 canvassed the returns of the election held on April 17, 2018, in Improvement Area No. 1 of the City of Tustin Community Facilities District No. 2018-01 (Public Services), and the total number of ballots cast in said Improvement Area No. 1 and the total number of votes cast for and against the measure are as follows, and the totals as shown for and against the measure are full, true and correct. BALLOT MEASURE: Shall the City of Tustin (the "City") be authorized to annually levy a special tax solely on lands within Improvement Area No. 1 (the "Improvement Area") of City of Tustin Community Facilities District No. 2018-01 (Public Services) (the "CFD") in accordance with the Rate and Method of Apportionment attached to the Resolution of Formation, commencing in the City's fiscal year 2018-19, to pay for the public services described in the proceedings to form the CFD and the Improvement Area therein (herein, "Services") including to pay the costs of the City in administering the CFD and the Improvement Area therein, with the amount of money to be raised annually to initially equal $429,000, and shall the annual appropriations limit of the Improvement Area be established in the amount of $4,000,000? IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND THIS 17th day of April, 2018. ERICA N. RABE, City Clerk Qualified Vote Landowner Cast YES NO Vote Improvement Area No. 1 of the City of Tustin Community Facilities District No. 2018-01 (Public Services) Special Tax Election April 17, 2018 BALLOT MEASURE: Shall the City of Tustin (the "City") be authorized to annually levy a special tax solely on lands within Improvement Area No. 1 (the "Improvement Area") of City of Tustin Community Facilities District No. 2018-01 (Public Services) (the "CFD") in accordance with the Rate and Method of Apportionment attached to the Resolution of Formation, commencing in the City's fiscal year 2018-19, to pay for the public services described in the proceedings to form the CFD and the Improvement Area therein (herein, "Services") including to pay the costs of the City in administering the CFD and the Improvement Area therein, with the amount of money to be raised annually to initially equal $429,000, and shall the annual appropriations limit of the Improvement Area be established in the amount of $4,000,000? IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND THIS 17th day of April, 2018. ERICA N. RABE, City Clerk RESOLUTION NO. 18-23 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, DECLARING THE RESULTS OF A SPECIAL ELECTION HELD IN IMPROVEMENT AREA NO. 1 OF THE CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES) AND DIRECTING RECORDING OF A NOTICE OF SPECIAL TAX LIEN WHEREAS, in proceedings heretofore conducted by this City Council pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, Section 53311, et seq., of the California Government Code (the Act), this City Council on this date adopted Resolution No. 18-22 entitled ."A Resolution of the City Council Of The City of Tustin, California, Calling A Special Election for the Purpose Of Approving A Special Tax in Improvement Area No. 1 of the City of Tustin Community Facilities District No. 2018-01 (Public Services) and Establishment of an Appropriations Limit," calling a special election of the qualified electors within Improvement Area No. 1 of the City of Tustin Community Facilities District No. 2018-01 (Public Services) (the CFD); and WHEREAS, pursuant to the terms of said resolution, which are by this reference incorporated herein, said special election was held on this date, and the City Clerk (the Clerk) has on file a Canvass and Statement of Results of Election, a copy of which is attached hereto as Exhibit "A" (the Canvass); and WHEREAS, this City Council has reviewed said Canvass and hereby approves it. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Tustin hereby finds, determines, resolves, and orders as follows: Section 1. The questions presented at said special election were the levy of a special tax within Improvement Area No. 1 (the "Improvement Area") of the CFD to be levied in accordance with the rate and method of apportionment heretofore approved by the City Council by Resolution No. 18-20 adopted this date, entitled "A Resolution of the City Council of the City of Tustin Authorizing Formation of City of Tustin Community Facilities District No. 2018-01 (Public Services), Designating Improvement Area No. 1 Therein, and Authorizing the Levy of a Special Tax Within Said Improvement Area" and the approval of an annual appropriations limit as specified in said resolution. Section 2. Pursuant to said Canvass on file with the Clerk, the issues presented at said special election were approved by the qualified electors of the Improvement Area of the CFD by more than two-thirds (213) of the votes cast at said special election. Section 3, Pursuant to said voter approval, the Improvement Area of the CFD is hereby declared to be fully formed with the authority to levy special taxes as heretofore provided in these proceedings and in the Act. Section 4. It is hereby found that all prior proceedings and actions taken by this City Council- with respect to the CFD, and the Improvement Area thereof, were valid and in conformity with the Act. Section 5. The Clerk is hereby directed to execute and cause to be recorded in the office of the County Recorder of the County of Orange a notice of special tax lien for the Improvement Area in the form required by the Act, said recording to occur no later than fifteen (15) days following adoption by the City Council of this Resolution. Section 9. This Resolution shall take effect immediately upon its adoption. Section 10. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions. APPROVED and ADOPTED at a meeting of the City Council of the City of Tustin on April 17, 20% ELWYN A. MURRAY, Mayor ATTEST: ERICA N. RABE, City Clerk STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF TUSTIN 1, Erica N. Rabe, 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 18-23 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 17th day of April, 2018 by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: ERICA N. RABE, City Clerk EXHIBIT A CANVASS AND STATEMENT OF RESULTS OF ELECTION IMPROVEMENT AREA NO. 1 OF THE CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES) CITY OF TUSTIN Improvement Area No. 1 Community Facilities District No.2018-01 (Public Services) CANVASS AND STATEMENT OF RESULTS OF ELECTION I hereby certify that on April 17, 2018, 1 canvassed the returns of the election held on April 17, 2018, in Improvement Area No, 1 of the City of Tustin Community Facilities District No. 2018-01 (Public Services), and the total number of ballots cast in said Improvement Area No. 1 and the total number of votes cast for and against the measure are as follows, and the totals as shown for and against the measure are full, true and correct. BALLOT MEASURE; Shall the City of Tustin (the "City") be authorized to annually levy a special tax solely on lands within Improvement Area No. 1 (the "improvement Area") of City of Tustin Community Facilities District No. 2018-01 (Public Services) (the "CFD") in accordance with the Rate and Method of Apportionment attached to the Resolution of Formation, commencing in the City's fiscal year 2018-19, to pay for the public services described in the proceedings to form the CFD and the Improvement Area therein (herein, "Services") including to pay the costs of the City in administering the CFD and the Improvement Area therein, with the amount of money to be raised annually to initially equal $429,000, and shall the annual appropriations limit of the Improvement Area be established in the amount of $4,000,000? 1N WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND THIS 17th day of April, 2018. ERICA N. RABE, City Clerk Qualified Vote Landowner Cast YES NO Vote Improvement Area No. 1 of the City of Tustin Community Facilities District No, 2018-01 (Public Services) Special Tax Election April 17, 2018 BALLOT MEASURE; Shall the City of Tustin (the "City") be authorized to annually levy a special tax solely on lands within Improvement Area No. 1 (the "improvement Area") of City of Tustin Community Facilities District No. 2018-01 (Public Services) (the "CFD") in accordance with the Rate and Method of Apportionment attached to the Resolution of Formation, commencing in the City's fiscal year 2018-19, to pay for the public services described in the proceedings to form the CFD and the Improvement Area therein (herein, "Services") including to pay the costs of the City in administering the CFD and the Improvement Area therein, with the amount of money to be raised annually to initially equal $429,000, and shall the annual appropriations limit of the Improvement Area be established in the amount of $4,000,000? 1N WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND THIS 17th day of April, 2018. ERICA N. RABE, City Clerk ORDINANCE NO. 1495 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF THE CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. .2018-01 (PUBLIC SERVICES) LEVYING SPECIAL TAXES WITHIN IMPROVEMENT AREA NO. 1 OF THE CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES) The City Council of the City of Tustin does hereby ordain as follows: SECTION I. The City Council finds and determines as follows. A. On March 7, 2018, this City Council adopted a resolution (No. 1815) entitled "Resolution of the City Council of the City of Tustin, California, as the Legislative Body of City Of Tustin Community Facilities District No. 2018-01 (Public Services), Designating Improvement Area No. 1 of City of Tustin Community Facilities District No. 2018-01 (Public Services) and Authorizing the Levy of a Special Tax within said Improvement Area" (the "Resolution of Intention"), stating its intention to form the "City of Tustin Community Facilities District No. 2018-01 (Public Services)" (the "CFD") under the Mello -Roos. Community Facilities Act of 1982, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing at Section 53311, of the California Government Code (the "Act"). B. Notice was published as required by the Act relative to the intention of this City Council to form the CFD and to provide for the Services. C. This City Council held a noticed public hearing as required by the Act relative to the determination to proceed with the formation of Improvement Area No. 1 (the "Improvement Area") of the CFD and regarding the rate and method of apportionment of the special tax to be levied within the Improvement Area of the CFD to finance the costs of Services. D. At said hearing all persons desiring to be heard on all matters pertaining to the formation of the Improvement Area of the CFD and the levy of said special taxes were heard, substantial evidence was presented and considered by this City Council and a full and fair hearing was held. E. Subsequent to said public hearing the Board adopted its resolutions entitled "A Resolution of the City Council of the City of Tustin Authorizing Formation of City of Tustin Community Facilities District No, 2018-01 (Public Services), Designating Improvement Area No. 1 Therein, and Authorizing the Levy of a Special Tax within said Improvement Area" (the "Resolution of Formation"), and "A Resolution of the City Council Of The City of Tustin, California, Calling A Special Election for the Purpose Of Approving A Special Tax in Improvement Area No. 1 of the City of Tustin Community Facilities District No. 2018-01 (Public Services) and Establishment of an Appropriations Limit," which resolutions established the CFD and the Improvement Area of the CFD, authorized the levy of special tax within the Improvement Area of the CFD and called an election within the Improvement Area of the CFD on the propositions of levying a special tax and establishing an appropriations limit within the Improvement Area of the CFD. F. An election was held within the Improvement Area of the CFD in which the eligible landowner electors approved said propositions by more than the two-thirds vote required by the Act. SECTION II. Levy of Special Tax. By the passage of this Ordinance, the City Council authorizes and levies special taxes within the Improvement Area of the CFD pursuant to Sections 53328 and 53340 of the Act, at the rates and in accordance with the method of apportionment set forth in Exhibit A (the "Rate & Method of Apportionment"). The special taxes are hereby levied commencing in fiscal year 2018-2019 and in each fiscal year thereafter as provided in the Rate and Method of Apportionment. SECTION III, Annual Levy. The legislative body of the CFD and Improvement Area therein is hereby authorized each year, by resolution adopted pursuant to Government Code Section 53340, to determine the specific special tax rate and amount to be levied for the then -current or future tax years, except that the special tax rate to be levied shall not exceed the maximum rate set forth in the Rate & Method of Apportionment. SECTION IV. Taxable Property. No other properties or entities are exempt from the authorized special tax unless the properties or entities are expressly exempted in the Rate & Method of Apportionment. SECTION V. Use of Proceeds. All Special Tax proceeds shall be used as provided for in the Act and the Resolution of Formation. The Special Tax shall be levied only for so long as needed for the purposes described in the Resolution of Formation. SECTION VI. Manner of Collection. The Special Tax shall be collected in the same manner as ordinary ad valorem property taxes and small be subject to the same penalties and the same procedure, sale and lien priority in cases of delinquency as provided for ad valorem taxes; provided, however, that the Improvement Area of the CFD may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations. SECTION VII. Inconsistency. To the extent that the terms and provisions of this Ordinance may be inconsistent or in conflict with the terms or conditions of any prior City ordinances, resolutions, rules or regulations governing the same subject, the terms and provisions of this Ordinance shall prevail with respect to the subject matter thereof and such inconsistent or conflicting provisions of prior ordinances, resolutions, rules or regulations are hereby repealed as of the effective date of this Ordinance. SECTION VIII. Invalidity. If any provision of this Ordinance or application thereof to any person or circumstance is held invalid, no other provision of this Ordinance shall be affected thereby. Section IX. Publication of Ordinance. The Mayor shall sign this Ordinance and the City Clerk shall attest this Ordinance and cause the same to be published within fifteen (15) days after its passage at least once in a newspaper of general circulation published and circulated in the City. PASSED AND ADOPTED, at a regular meeting of the City Council for the City of Tustin on this 1st day of May, 2418. ELWYN A. MURRAY, Mayor ATTEST: ERICA N. RABE, City Clerk APPROVED AS TO FORM: DAVID E. KENDIG, City Attorney STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF TUSTIN } CERTIFICATION FOR ORDINANCE NO. 1495 Erica N. Rabe, City Clerk and ex -officio Clerk of the City Council of the City of Tustin, California, does 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 Ordinance No. 1495 was duly and regularly introduced and read by title only at the regular meeting of the City Council held on the 17th day of April, 2018, and was given its second reading, passed and adopted at a regular meeting of the City Council held on the 1st day of May, 2018, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: ERICA N. RABE, City Clerk EXHIBIT A CITY OF TUSTIN Community Facilities District No. 2018-01 (Public Services) Improvement Area No. 1 Rate and Method of Apportionment RATE AND METHOD OF APPORTIONMENT FOR IMPROVEMENT AREA NO. 1 OF CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES) CITY OF TUSTIN, COUNTY OF ORANGE, STATE OF CALIFORNIA A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels of Taxable Property in Improvement Area No. 1 of City of Tustin Community Facilities District No. 2018-01 (Public Services), City of Tustin, County of Orange, State of California ("CFD No. 2018-01 (IA No. 1)") and collected each Fiscal Year commencing in Fiscal Year 2018-19, in an amount determined by the City Council through the application of the appropriate Special Tax for "Developed Property," as described below. All of the real property in CFD No. 2018-01 (IA No. 1), unless exempted by law or by the provisions hereof, shall be taxed for these 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 in acres 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 in acres shown on the applicable final map, parcel map, condominium plan, or other map or plan recorded with the County. 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, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2018-01 (IANo. 1): the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or any designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs to the City, CFD No. 2018-01 (IANo. 1), or any designee thereof of complying with CFD No. 2018-01 (IA No. 1) or obligated persons disclosure requirements associated with the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs to the City, CFD No. 2018-01 (IA No. 1), or any designee thereof related to an appeal of the Special Tax; 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. 2018-01 (IA No. 1) for any other administrative purposes of CFD No. 2018-01 (IA No. 1), including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. City of Tustin March 7, 2018 CFD No. 2018-01 (IA No. 1) Page I "Assessor's Parcel" or "Parcel" means a lot or parcel shown on an Assessor's Parcel Map with an assigned Assessor's Parcel number. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor's Parcel number. "Attached Residential Property" means Assessor's Parcels of Developed Property for which Building Permits have been issued for a Dwelling Unit that shares, or will share, an inside wall with another Dwelling Unit. "Authorized Services" means those services eligible to be funded by CFD No. 2018-01 (IA No. 1), as defined in the Resolution of Formation and authorized to be financed by CFD No. 2018-01 (IA No. 1) pursuant to Section 53313 and Section 53313.5 of the Act. CFD No. 2018-01 (IA No. 1) shall finance Authorized Services only to the extent that they are in addition to those provided in the territory of CFD No. 2018-01 (IA No. 1) before the CFD was created and such Authorized Services may not supplant services already available within CFD No. 2018-01 (IA No. 1) when the CFD was created. "Building Permit" means a permit issued by the City or other governmental agency for the construction of a residential or non-residential building on an Assessor's Parcel. "CFD Administrator" means an official of CFD No. 2018-01 (IA No. 1), or any designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD No. 2018-01 (IA No. 1)" means Improvement Area No. 1 or City of Tustin Community Facilities District No. 2018-01 (Public Services), City of Tustin, County of Orange, State of California. "City" means the City of Tustin, California. "City Council" means the City Council of the City. "City Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 2018-01 (IA No. 1) that is owned by or irrevocably offered for dedication to the City; provided however that any property leased by the City to a private entity and subject to taxation under Section 53340.1 of the Act, as such section may be amended or replaced, shall be taxed and classified in accordance with its use. "Consumer Price Index" means, for each Fiscal Year, the Consumer Price Index published by the U.S. Bureau of Labor Statistics for All items in Los Angeles -Riverside - Orange County, CA, all urban consumers, not seasonally adjusted" index (Series Id: CL URA421 SAO), measured as of the month of December in the calendar year that 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. City of Tustin March 7, 2018 CFD No. 2018-01 (IA No. 1) Page 2 "County" means the County of Orange. "Detached Residential Property" or "SFD" means Assessor's Parcels of Developed Property for which Building Permits have been issued for a Dwelling Unit that is or is expected to be surrounded by freestanding walls and that does not share an inside wall with any other Dwelling Unit. "Developed Property" means, for each Fiscal Year, all Assessor's Parcels for which a Building Permit was issued after January 1, 2018 and on or before May 1 of the Fiscal Year preceding the Fiscal Year for which the Special Taxes are being levied. "Dwelling Unit" means a building or portion thereof designed for and occupied in whole or part as a residence or sleeping place, either permanently or temporarily, by one (1) family and its guests, with sanitary facilities and one (1) kitchen provided within the unit. Boarding or lodging houses, dormitories, and hotels shall not be defined as Dwelling Units unless the land use permit specifies a residential use. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Flat Property" or "Flats" means Attached Residential Property generally characterized as having the majority of living space on a single floor which may overlap other dwelling units above or below within the same building, for which Building Permits have been issued permitting the development of 2- or 3 -story flats, as determined by the CFD Administrator. "Maximum Special Tax" means, for each Fiscal Year, the maximum Special Tax, determined in accordance with Section C, below, that can be levied on any Assessor's Parcel. "Property Owner Association Property" means, for each Fiscal Year, any Assessor's Parcel within the boundaries of CFD No. 2018-01 (IA No. 1) that is owned by or irrevocably offered for dedication to a property owner association, including any master or sub - association, not including any such property that is located directly under a residential or non-residential structure. "Proportionately" means that the ratio of the actual annual Special Tax levy to the Maximum Special Tax is equal for all Assessor's Parcels of Developed Property. "Rate and Method of Apportionment" or "RMA" means this Rate and Method of Apportionment of Special Tax. City of Tustin March 7, 2018 CFD No. 2018-01 (IA No. 1) Page 3 "Resolution of Formation" means the resolution forming CFD No. 2018-01 (IA No. 1). "Special Tax" or "Special Taxes" means the special tax or special taxes to be levied in each Fiscal Year on each Assessor's Parcel of Developed Property to fund the Special Tax Requirement. "Special Tax Requirement" means that amount to be collected in any Fiscal Year for CFD No. 2018-01 (IA No. 1) to pay for certain costs as required to meet the needs of the CFD in that Fiscal Year. The costs to be covered shall be the direct costs for (i) Authorized Services, including the establishment of reserves for future costs of Authorized Services, (ii) Administrative Expenses, and (iii) an amount to cover anticipated delinquencies for the payment of the Special Tax, based on the delinquency rate for the preceding Fiscal Year; less (iv) a credit for funds available to reduce the annual Special Tax levy, if any, as determined by the CFD Administrator. Under no circumstances shall the Special Tax Requirement include debt service payments for debt financings by CFD No. 2018-01 (IA No. 1). "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No. 2018-01 (IA No. 1) which are not exempt from the Special Tax pursuant to law or Section E below. "Townhome Property" or "Townhomes" means Attached Residential Property generally characterized as having a direct ground floor private entry where living space occurs on multiple levels of roughly the same proportion and having at least one vertical wall extending from ground to roof dividing it from the adjoining unit, for which Building Permits have been issued permitting the development of townhomes, as determined by the CFD Administrator. "Undeveloped Property" means, for each Fiscal Year, all property not classified as Developed Property, Property Owner Association Property, or City Property. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, all Assessor's Parcels within CFD No. 2018-01 (IA No. 1) shall be classified by the CFD Administrator as Developed Property, Undeveloped Property, Property Owner Association Property, or City Property, and shall be subject to annual Special Taxes in accordance with this Rate and Method of Apportionment as determined by the CFD Administrator pursuant to Sections C and D below. The CFD Administrator's allocation of property to each type of Land Use Class shall be conclusive and binding. However, only Developed Property shall be subject to annual Special Taxes in accordance with the Rate and Method of Apportionment as determined pursuant to Sections C and D below. City of Tustin March 7, 2018 CFD No. 2018-01 (IA No. 1) Page 4 C. MAXIMUM SPECIAL TAX RATE 1. Developed Property a. Maximum Special Tax The Maximum Special Tax for Fiscal Year 2018-19 for Developed Property is shown below in Table 1. Under no circumstances shall a Special Tax be levied on additions to existing Dwelling Units. TABLE 1 Maximum Special Taxes for Developed Property For Fiscal Year 2018-19 Community Facilities District No. 2018-01 (IA No. 1) Land Use Class Land Use Fiscal Year 2018-19 Maximum Special Tax 1 FLATS (>= 2,500 SF) $2,416 PER DWELLING UNIT 2 FLATS (2,000 - 2,499 SF) $2,267 PER DWELLING UNIT 3 FLATS (1,500 - 1,999 SF) $1,889 PER DWELLING UNIT 4 FLATS (< 1,500 SF) $1,809 PER DWELLING UNIT 5 SFD (>= 2,800 SF) $2,717 PER DWELLING UNIT 6 SFD (2,500 - 2,799 SF) $2,585 PER DWELLING UNIT 7 SFD (2,200 - 2,499 SF) $2,240 PER DWELLING UNIT 8 SFD (< 2,200 SF) $2,177 PER DWELLING UNIT 9 TOWNHOMES (>= 2,125 SF) $1,852 PER DWELLING UNIT 10 TOWNHOMES (1,875 - 2,124 SF) $1,690 PER DWELLING UNIT 11 TOWNHOMES (1,625 - 1,874 SF) $1,617 PER DWELLING UNIT 12 TOWNHOMES (< 1,625 SF) $1,408 PER DWELLING UNIT b. 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 that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Taxes that can be levied for all Land Use Classes located on that Assessor's Parcel. City of Tustin March 7, 2018 CFD No. 2018-01 (IA No. 1) Page 5 Increase in the Maximum Special Tax On each July 1, commencing on July 1, 2019, the Maximum Special Tax for Developed Property shall be increased annually by the greater of the change in the Consumer Price Index during the twelve (12) months prior to December of the previous Fiscal Year and two percent (2.00%), not to exceed four percent(4.00%). 2. Undeveloped Property No Special Taxes shall be levied on Undeveloped Property. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2018-19 and for each following Fiscal Year, the City Council shall levy the annual Special Tax Proportionately for each Assessor's Parcel of Developed Property at up to 100% of the applicable Maximum Special Tax, until the amount of Special Taxes equals the Special Tax Requirement. E. EXEMPTIONS In addition to Undeveloped Property being exempt from annual Special Taxes, no Special Tax shall be levied on City Property or Property Owner Association Property in CFD No. 2018-01 (IA No. 1). However, should an Assessor's Parcel no longer be classified as City Property or Property Owner Association Property, such Assessor's Parcel shall, upon each reclassification, no longer be exempt from Special Taxes. F. APPEALS AND INTERPRETATIONS Any landowner or resident may file a written appeal of the Special Tax on his/her property with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall eliminate or reduce the Special Tax on the appellant's property and/or provide a refund to the appellant. If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has thirty (30) days in which to appeal to the City Council by filing a written notice of appeal with the clerk of the City, provided that the appellant is current in his/her payments of Special Taxes. The second appeal must specify the reasons for the appellant's disagreement with the CFD Administrator's determination. The CFD City of Tustin March 7, 2018 CFD No. 2018-01 (IA No. 1) Page 6 Administrator may charge the appellant a reasonable fee for processing the appeal. The City may interpret this Rate and Method of Apportionment for purposes of clarifying any ambiguity and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals. Any decision of the City will be final and binding as to all persons. G. MANNER OF COLLECTION The annual Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the City may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary or otherwise advisable to meet its financial obligations for CFD No. 2018-01 (IA No. 1), and may covenant to foreclose and may actually foreclose on delinquent Assessor's Parcels as permitted by the Act. H. FUTURE ANNEXATIONS It is anticipated that additional properties will be annexed to CFD No. 2018-01 from time to time. As each annexation is proposed, an analysis may be prepared to determine the annual cost for providing Authorized Services to such parcels. Based on this analysis, any parcels to be annexed, pursuant to California Government Code Section 53339 et seq. will be assigned the approximate Maximum Special Tax rates when annexed and included in Exhibit A. L TERM OF SPECIAL TAX The Special Tax shall be levied in perpetuity as necessary to meet the Special Tax Requirement, unless no longer required to pay for Authorized Services as determined at the discretion of the City. City of Tustin March 7, 2018 CFD No. 2018-01 (IA No. 1) Page 7 EXHIBIT A IDENTIFICATION OF FUTURE ANNEXATIONS City of Tustin January 30, 2018 CFD No, 2018-1 (IA No, 1) Page 8 JD I 0i p z 7— SHEET SHEET 1 OF 2 PROPOSED BOUNDARIES OF CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES) COUNTY OF ORANGE STATE OF CALIFORNIA (1) Filed in the office of the City Clerk of the City of Assessor Parcels within the Future Annexation Area of City of Tustin Tustin this -74-1) day of mar,6 2018. Community Facilities District No. 2018-01 (Public Services): 430-271-U4 430-271-89 430-371-21 430-371-06 430-381-42 430-391-46 430-271-35 430-271-90 430-371-22 30-371-57 430-381-43' 430-391-47 Erica N. Rabe, City Clerk. City of Tustin 430-271-36 430-271-91 430-371-23 430-371-08 'portion 430-391-48 430-27.1-37 430-271-92 430-371-24 430-371-59 430-381-65 430-391-49 (2) 1 hereby certify that the within map showing the 430-271-38 430-271-93 430-371-25 430-371-60 430-381-66 430-391-50 proposed boundaries of City of Tustin Community 430-271-39 430-282-01 430-371-26 430-371-61 430-381-67 430-391-51 Facilities District No. 2018-01 (Public Services), 430-271-49 430-282-07 430-371-27 430-371-62 430-381-68 430291-52 County of Orange, State of California, was 430-271-50 430-282-13 430-371-28 430-371-63 430-381-69 430-391-53 approved by the City Council of the City of Tustin 430-271-51 430-282-14 430-371-29 430-371-64 430-381-74 430-391-54 at a regular meeting thereof, held on the 74h_ 430-271-52 430-282-15 430-371-30 430-371-65 430-381-75 430-391-55 day of 11Lr,}, , 2018, by its Resolution No. 430-271-53 430-282-16 430-371-31 430-371-66 430-391-03 430-391-56 430-271-54 430-282-25 430-371-32 430-371-67 430-391-15 430-391-57 430-271-55 430-28.3-02 430-371-33 430-371-68 430-391-19 430-391-58 430-271-70" 430-283-04 430-371-38 430-371-73 430-391-20 430-391-59 liCl 1W "portion 430-283-05 430-371-39 430-371-74 430-391-21 430-391-60 Erica N. Rabe, City Clerk, City of Tustin 430-271-71 430-283-06 430-371-40 430-371-76 430-391-22 430-391-61 psy-n.('°-- civ-rwra-. 430-271-72 430-283-08 430-371-41 430-371-77 430-391-23 430-391-62 (3) Filed this 001 day Aarch 2018, 430-271-77 430-283-09 430-371-42 430-381-27 430-391-24 430-391-63 of at 430-271-78 430-283-10 430-371-43 430-381-28 430-391-25 430-391-64 the hourof it:41 o'clockgm, in Book 430-271-79 430-283-11 430-371-44 430-381-29 430-391-26 430-391-65 IW of Maps of Assessment and 43;-271-80 4130-28321 430-371-45 430.381-30 430-391-27 430-391-66 Community Facilities Districts at page 430-271-01 430-283-22 430-371-46 430-381-31 430-391-28 430-391-67 zs-s6 m1m and as Instrument No. 430-271-82 430-283-23 430.371-47 430-381-32 430-391-29 430-391-68 .2 IRWOIoZotq in the office of the 430-271-63 430-283-24 430-371-48 430-381-33 430-391-30 430-391-69 County Recorder of the County of Orange, State 430-271-84 430-284-01 430271-50 430-381-35 430-391-32 430-391-72 of California. 430-271-85 430-284-04 430-371-51 430-381-38 430-391-42 434-021-30 430-271-86 430-371-18 430-371-52 430-381-39 430-391-43 434-061-49 Hugh Nguyen, 430271-87 430-371-19 430271-54 430-381-40 430-391-44 County Clerk -Recorder of County of Orange 430-271-88 430-371-20 430-371-55 430-381-41 430-391-45 Assessor Parcels within Improvement Area No. 1 of City of Tustin By Community Facilities District No. 2018-01 (Public Services): Reference is hereby made to the Assessor maps ty 430-381-18 of the County of Orange for a description of the Feeat� 430-381-44 lines and dimensions of these parcels. Exempt recording requested, per 430-381-45 430-381-46 Prepared by David Taussig & Associates, Inc_ CA Government Code §6103 SHEET 2 OF 2 s 0 PROPOSED BOUNDARIES OF CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES) COUNTY OF ORANGE STATE OF CALIFORNIA RD IVLP Z3 l LEGEND Proposed Boundaries of City of ■ ■ ■ ■ Tustin Community Facilities District No. 2018-01 (Public Services) Improvement Area No. 1 Assessor Parcel Line ® Future Annexation Area �b >;