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HomeMy WebLinkAbout14 COMMUNITY FACILITIES DISTRICT 2018-01 ZONE 3Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5FlFA8OA58B8 MEETING DATE TO: FROM: SUBJECT: SUMMARY: AGENDA REPORT JUNE 17, 2025 ALDO E. SCHINDLER, CITY MANAGER 14 Agenda Item Initial Reviewed: afs City Manager Finano tor BRIAN MONCRIEF, DEPUTY CITY MANAGER — REAL PROPERTY JENNIFER KING, FINANCE DIRECTOR/CITY TREASURER COMMUNITY FACILITIES DISTRICT 2018-01 ZONE 3 Request for approval of the implementing documents and resolution related to the annexation of property subject to a Disposition and Development Agreement between the City and Tustin Legacy Acquisition LLC (Irvine Company) into Community Facilities District 2018-01 and designating the property as Zone 3. RECOMMENDATION: It is recommended that the City Council take the following actions: 1. Receive and file the unanimous approval of annexation into Community Facilities District 2018-01 Zone 3 and related matters signed by the City Manager on behalf of the City of Tustin as the property owner-, and 2. Adopt Resolution 25-40- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, DECLARING INTENTION TO ANNEX TERRITORY TO THE CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES), APPROVING A BOUNDARY MAP OF THE ANNEXATION PROPERTY AND DIRECTING THE CITY CLERK TO RECORD THE BOUNDARY MAP, THE NOTICE OF THE SPECIAL TAX LIEN FOR COMMUNITY FACILITIES DISTRICT NO. 2018-01 ZONE 3, AND THE NOTICE OF CESSATION OF SPECIAL TAX LIEN FOR COMMUNITY FACILITIES DISTRICT NO. 2013-01 FISCAL IMPACT: The Rate and Method of Apportionment for each Zone of Community Facilities District 2018-01 establishes the cost for services required for each proposed land use. The special tax is 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 Tustin Legacy. Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58138 City Council Agenda Report CFD 2018-01 Zone 3 June 17, 2025 Page 2 The Rate and Method of Apportionment for proposed Community Facilities District 2018- 01 Zone 3 has been previously negotiated through the Disposition and Development Agreement between the City and Irvine Company which was approved by the City Council on March 18, 2025. The initial negotiated rate attributable to market rate apartments beginning in Fiscal Year 2024-2025 will be $1,364.28 per dwelling unit with affordable dwelling units exempted from the special tax. The rate will escalate annually based on a specific Consumer Price Index with a minimum annual escalation of 2% and a maximum of 3%. CORRELATION TO THE STRATEGIC PLAN: The actions associated with the creation of Community Facilities District 2018-01 Zone 3 contribute to the fulfillment of the City's Strategic Plan Goal A: Economic and Neighborhood Development. Specifically, this item implements Strategy 1, which is to develop critical phases of Tustin Legacy. This item also contributes to the fulfillment of the City's Strategic Plan Goal C: Financial Strength. Specifically, this item implements Strategy 3, which is to evaluate City services and identify ways to improve cost neutrality; and Strategy 4, which is to explore opportunities for new or increased revenues and diversify revenue sources beyond sales and property taxes. BACKGROUND AND DISCUSSION: To date, six (6) Community Facilities Districts (CFDs) have been formed at Tustin Legacy to fund facilities (Tax A) and services (Tax 13) at Tustin Legacy due to the discrepancy in property tax revenue received at Tustin Legacy (approximately 3% of the 1.0% basic levy) compared to City-wide (approximately 11 %). Tustin Legacy has significant operational and maintenance costs that may require more than the roughly 11% property tax revenue received City-wide. A breakdown of CFDs formed to date is as follows: - CFD 2004-01 (Tustin Field I and 11) o Tax A and B - CFD 2006-01 (Columbus Grove, Columbus Square) o Tax A and B - CFD 2007-01 (The District) o Tax A and B - CFD 2013-01 (The Village at Tustin Legacy, Amalfi Apartments, Anton Legacy, FLIGHT at Tustin Legacy, Legacy Magnet Academy) o Tax B only - CFD 2014-01 (Greenwood in Tustin Legacy) o Tax A and B Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5FlFA8OA58B8 City Council Agenda Report CFD 2018-01 Zone 3 June 17, 2025 Page 3 - CFD 2018-01 (Levity at Tustin Legacy, The Landing, Irvine Company Apartments, remaining undeveloped portions of Tustin Legacy) o Tax B only The City Council authorized the formation of CFD 2013-01 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 2013-01 (e.g., hotels and separate commercial uses). A new services CFD was needed to account for known and unknown land uses in the future. Accordingly, CFD 2018-01 was created in 2018 to account for known and unknown future land uses and is broken up into Zones. A map of the CFD 2018-01 area is shown on Attachment 1; however, most 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 Zone meets the funding levels for the required services. Any property within the boundaries of CFD 2013-01 and CFD 2018-01 will be released of the CFD 2013-01 obligation when the Zone is annexed into CFD 2018-01. Zone 1 was formed for the 14-acre, 218 for -sale unit Levity project in 2018. Zone 2 was formed in 2021 for the 25-acre, 400 for -sale unit The Landing project. Zone 3 is proposed to be formed for the 1,336-unit multifamily project pursuant to a Disposition and Development Agreement (DDA) between the City and Irvine Company on 19.4 acres within Neighborhood D South. The DDA previously established the CFD rates for the project which have been incorporated into Irvine Company's overall project costs. The 19.4 acres will be released from CFD 2013-01 through a notice of cessation of special tax that is included as part of the recommended actions. The initial negotiated rate attributable to market rate apartments for Fiscal Year 2024-2025 will be $1,364.28 per dwelling unit with affordable dwelling units exempted. The rate will escalate annually on July 1 based on a specific Consumer Price Index with a minimum annual escalation of 2% and a maximum of 3%. The Irvine Company's current schedule anticipates the first building permit being issued in Q4 2025 and the City will begin to receive Tax B revenue from this project shortly thereafter. As the project progresses, the City will receive more Tax B revenue each year until project completion. Zone 3 will exist in perpetuity to continue to offset the costs of services and maintenance at Tustin Legacy. Mello -Roos Act Section 53339.8 provides that upon a determination by the legislative body that the area proposed to be annexed is added to the existing community facilities district, the clerk of the legislative body shall record notice of the annexation in the real property records of the County. Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5F1 FA80A58B8 City Council Agenda Report CFD 2018-01 Zone 3 June 17, 2025 Page 4 r Signed by: AUVUW*tf Brian Moncrief Deputy City Manager — Real Property rSigned by: r�� swibk&L F485D4BOBCF426. Ryan Swiontek Deputy Director of Real Property Attachments: ESigned by- �4m�6" Jennifer King Finance Director/City Treasurer Signed by: 1� pl,�- AArr Kenneth Piguee Real Property Manager 1. CFD 2018-01 Boundary Map (showing Zone 1) 2. Executed Unanimous Approval of Annexation to a Community Facilities District for Zone 3 3. Notice of Special Tax Lien Cessation for CFD 2013-01 4. Resolution 25-40 5. CFD 2018-01 Zone 3 Map 6. Notice of Special Tax Lien for CFD 2018-01 Zone 3 Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5FlFA8OA58B8 I 1)(P ; 7, Z, SHFFT � OF 2 4 30-271_,04 430-271-35 430-271-36 430-27-1-37 430-271-38 430-271-39 430-271-49 430-271-50 -430-271-51 430-271-52 430-271-53 4%**30-271-54 430-271-55 430-271-70* * portion 4%30-271-71 430-271-72 430-271-77 430-271-78 430-271-79 7 1 -80 4 3 "..2 / 430-271-81 430-271-82 430-27 430-271-84 430-9271-85 430-271-86 430-271-87 430-271-88 PROPOSED BOUNDARIES OF CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES) COUNTY OF ORANGE STATE OF CALIFORNIA Assessor Parcels within the Future Annexation Area of City of Tustin Community Facilities District No. 2018-01 (Public Services)- 430-271-89 430-271-90 430-271-91 430-271-92 430-271-93 430-282-01 430-282-07 430-282-13 430-282-14 430-282-15 430-282-16 430-282-25 430-283-02 430-283-04 430-283-05 430-283-06 430-283-08 430-283-09 430-283-10 430-283-11 1" 30-283-21 430-283-22 430-283-23 430-283-24 430-284-01 430-284-04 430-371-18 430-371-19 430-371-20 430-371-21 430-371-22 430-371-23 430-371-24 430-371-25 430-371-26 430-371-27 430-371-28 430-371-29 430-371-30 430-371-31 430-371-32 430-371-33 430-371-38 430-371-39 430-371-40 430-371-41 430-371-42 430-371-43 430-371-44 430-371-45 430-371-46 430-371-47 430-371-48 430-371-50 430-371-51 430-371-52 430-371-54 430-371-55 Assessor Parcels within Improvement Area No. 1 of City of Tustin Community Facilities District No. 2018-01 (Public Services)- 430-381-18 430-381-44 430-381-45 430-371-56 30-371-57 430-371-58 430-371-59 430-371-60 430-371-61 430-371-62 430-371-63 430-371-64 430-371-65 430-371-66 430-371-67 430-371-68 430-371-73 430-371-74 430-371-76 430-371-77 430-381-27 430-381-28 430-381-29 430-381-30 430-381-31 430-381-32 430-381-33 430-381-35 430-381-38 430-381-39 430-381-40 430-381-41 430-381-42 430-381-43* *portion 430-381-65 430-381-66 430-381-67 430-381-68 430-381-69 430-381-74 430-381-75 430-391-03 430-391-15 430-391-19 430-391-20 430-391-21 430-391-22 430-391-23 430-391-24 430-391-25 430-391-26 430-391-27 430-391-28 430-391-29 430.-391--30 430-391-32 430-391-42 430-391-43 430-391-44 430-391-45 430-391-46 430-391-47 430-391-48 430-391-49 430-391-50 430-391-51 430-391-52 430-391-53 430-391-54 430-391-55 430-391-56 430-391-57 430-391-58 430-391-59 430-391-60 430-391-61 430-391-62 430-391-63 430-391-64 430-391-65 430-391-66 430-391-67 430-391-68 430-391-69 430-391-72 434-021-30 434-061-49 Reference is hereby made to the Assessor maps of the County of Orange for a description of the lines and dimensions of these parcels. 430-381-46 Prepared by David Taussig & Associates, �nc. Filed in the office of the City Clerk of the City of Tustin this day of T,,(xfj, 7 2018. Erica N. Rabe, City Clerk, City of Tustin (2) 1 hereby certify that the within map showing the proposed boundaries of City of Tustin Community Facilities District No. 2018-01 (Public Services), County of Orange, State of California, was approved by the City Council of the City of Tustin at a regular meeting thereof, held on the --Z�h - day of 20181 by its Resolution No. Erica N. Rabe, City Clerk, City of Tustin ReC-0r_);A0q Aeepestr'A i(,�: ci'v a#- nori-%_ (3) Filed this YVa day of r�av-cVl 5 2018, at the hour of ii - 41 o'clock 1% M, in Book — 10LO of Maps of Assessment and Community Facilities Districts at page zz-zs and as Instrument No. 2_0%lb000 102-Otq in the office of the County Recorder of the County of Orange, State of California. Hugh Nguyen, County Clerk -Recorder of County of Orange go ty Fee J��emp /— Exempt recording requested, per CA Government Code §6103 Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58138 SHEET 2 OF 2 PROPOSED BOUNDARIES OF CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES) COUNTY OF ORANGE STATE OF CALIFORNIA -+C 111�7-0,c-.l �yo �Y�- ��N ><�V// 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 --, W�,� ///// /;// 7/ Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58138 UNANIMOUS APPROVAL OF ANNEXATION TO A COMMUNITY FACILITIES DISTRICT AND REA LATED MATTERS CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES) ANNEXATION NO. 2 ZONE 3 JUNE 10, 2025 Honorable Mayor and Members of the City Council City of Tustin 300 Centennial Way Tustin, CA 92780 Mayor and Members of the City Council: The undersigned hereby states and certifies, under penalty of perjury, as follows: 1 . Property Owne . The undersigned is the authorized representative of the owner (the "Property Owner") of fee simple title to the real property identified by the parcel number(s) listed below and described as set forth in Exhibit C (the "Property") and possesses all legal authority necessary to execute this Unanimous Approval. If requested by the City of Tustin (the "City"), the Property Owner has supplied to the City current evidence of its ownership of the Property. The Property Owner hereby represents and warrants that there are no persons resident on the Property that are registered to vote. 2. Aclmowledgement of CFD. The Property Owner acknowledges and understands the following: a. The City Council of the City has formed the City of Tustin Community Facilities District No. 2018-01 (Public Services) (the "CFD") and designated a future annexation area for the CFD (the "Future Annexation Area"), pursuant to the Mello -Roos Community Facilities Act of 1982, as amended (the "Act") for the purpose of financing the municipal services (the "Services") described on Exhibit A hereto and made a part hereof. b. The proceedings for the formation of the CFD authorized the City Council to levy an annual special tax (the "Special Tax") on property in the CFD as specified in a Rate and Method of Apportionment of Special Tax (the "Rate and Method") approved in connection with the annexation into the CFD of property in the Future Annexation Area. The Rate and Method for the Property is attached hereto as Exhibit B and made a part hereof. The boundary Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58B8 map showing the Property to be recorded in the official records of Orange County, California is attached hereto as Exhibit D. c. The Property Owner acknowledges that the City will create a special account into which the Special Taxes will be deposited, when collected, and that the City will prepare the annual report required by Government Code Section 50075.3. d. The proceedings for the formation of the CFD authorized the City Council to annex property in the Future Annexation Area to the CFD, without additional public hearings, upon approval of the owner of the property to be annexed as permitted by Section 53339.7(a) of the Act. e. The Property is in the Future Annexation Area for the CFD. f. Pursuant to California Government Code 53317(f)(4), the Property is within the territory of a military base that is closed. 3. Unanimous Approval and Vote. This Unanimous Approval constitutes the unanimous approval and vote of the Property Owner in favor of the following matters for the purposes of Section 53339.7 et seq. of the Act and Article XIIIA of the California Constitution: a. Annexation: The annexation of the Property to the CFD for the purpose of financing the Services is hereby approved. b. IMprovement Area: The designation of the Property as a new improvement area to be known as "Zone 3 of the City of Tustin Community Facilities District No. 2018-01 (Public Services)" is hereby approved. c. Special T : The levy of the Special Tax on the Property to finance the Services, according to the Rate and Method is hereby approved. d. Appropriations Limit: An initial annual appropriations limit for the Property of $4,000,000 for Fiscal Year 2025-26 is hereby approved. The Property Owner acknowledges and agrees that the appropriations limit will be increase annually in accordance with applicable law. 4. Waivers. The Property Owner hereby irrevocably waives (i) any right the Property Owner may otherwise, have to protest or challenge the validity of the proceedings to form the CFD and to authorize the annexation of any property (including the Property) to the CFD, and (ii) any necessity, requirement or right for further public hearings or any election pertaining to the annexation of the Property to the CFD or the levy of the Special Tax on the Property. The Property Owner specifically and irrevocably waives the following provision of Section 10 of Resolution No. 18-15 of the City of Tustin, approved by the City Council of the City of Tustin on March 7, 2018, which provides as follows: "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 4 hereof without any alteration in 2 Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58B8 the special tax rate to be levied in such improvement area of the CFD as a result of any future annexation." � 5. Cessation of Special Tax, Recordation of Notice of Special Tax Lien. The Property Owner acknowledges and understands that a Notice of Special Tax Lien for Community Facilities District No. 13-01 (CFD No. 13-01) of the City of Tustin (the "CFD No. 13-01 Notice of Special Tax Lien") was recorded in the Office of the Recorder of the County of Orange on May 16 2013, as Document No. 2013-000296640. The Property Owner hereby authorizes and directs the City Clerk to execute and cause to be delivered a Notice of Cessation of Special Tax Lien with respect to CFD No. 13-01 Notice of Special Tax Lien, permanently cancelling and terminating the levy against the Property of the special tax described therein. The Property Owner hereby authorizes and directs the City Clerk 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 Zone 3 of the CFD (the "Zone 3 Notice of Special Tax Lien") in the form attached hereto as Exhibit E, as required by Section 3 1 t7.5 of the California Streets and Highways Code, which will impose a continuing lien on the Property to secure each levy of the Special Tax. The Zone 3 Notice of Special Tax Lien shall include the Rate and Method as an exhibit thereto. The Property Owner acknowledges and understands that the lien of the Special Tax on the Property is coequal with the lien for ad valorem real property taxes levied by the County on the Property. 6. Disclosures. The Property Owner hereby agrees to provide to any subsequent purchaser of the Property written notice of the annexation of the Property to the CFD, and of the authority of the City Council to levy the Special Taxon the Property pursuant to the Rate and Method, to the extent required by applicable law. 7. Agreements. The Property Owner further agrees to execute such additional or supplemental agreements and to take such additional actions as may be required by the City to provide for any of the actions and conditions described in this Unanimous Approval, including any cash deposit required to pay for the City's costs in annexing the Property to the CFD. Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5FlFA8OA58B8 The Propeily subject to this Unanimous Approval and to be annexed to the CFD, consists of the following parcels: The territory as further described on Exhibit C hereto. The full legal name of the Property Owner is: City of Tustin, California The foregoing Unanimous Approval is hereby executed this 10 day of June, 2025, in Tustin, California. By: Name: Aldo 1�—Schindler Title: City Manager Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5F1 FA80A58B8 EXHIBIT A DESCRIPTION OF SERVICES TO BE FINANCED BY THE CFD It is intended that Zone 3 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"). Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5F1 FA80A58B8 EXHIBIT B RATE AND METHOD OF APPORTIONMENT ZONE 3 OF THE CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES) Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58138 If 1 —11 to-1101011TA 14 9: [#TRX91 S-110:191 1.4 9 1910MA 14 LIN I FOR ZONE 3 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 Zone 3 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") and collected each Fiscal Year commencing in Fiscal Year 2025-2026, in an amount determined by the City Council through the application of the appropriate Special Tax for "Developed Property," as described below. All the real property in Zone 3 of CFD No. 2018-01, 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: "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: 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, or any designee thereof of complying with CFD No. 2018-01 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, 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 for any other administrative purposes of CFD No. 2018-01, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Affordable Units" means Dwelling Units located on one or more Assessor's Parcels of Apartment Property that are subject to deed restrictions, resale restrictions, and/or regulatory agreements recorded in favor of the City providing for affordable housing. Affordable Units shall be units that are classified as either Lower Income or Very Low income (as defined in Sections 50093, 50079.5, and 50105, respectively, of the California Health and Safety Code.) "Apartment Property" means all Parcels of Developed Property for which a building permit has been issued for the purpose of constructing a building or buildings comprised Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58138 of attached Dwelling Units available for rental by the general public, and under common management, as determined by the Administrator. "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. "Authorized Services" means those services eligible to be funded by CFD No. 2018-01, as defined in the Resolution of Formation and authorized to be financed by CFD No. 2018-01 pursuant to Section 53313 of the Act. CFD No. 2018-01 shall finance Authorized Services only to the extent that they are in addition to those provided in the territory of CFD No. 2018-01 before the CFD was created and such Authorized Services may not supplant services already available within Zone 3 of CFD No. 2018-01 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. For purposes of clarity, a permit forthe construction of a parking garage issued separate from that of a building containing Dwelling Units shall not be considered a Building Permit under this Rate and Method of Apportionment. "Building Square Footage" or "BSF" for Commercial Property means all of the square footage within the perimeter of a non-residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of "Building Square Footage" for a non-residential structure will be based on the Building Permit(s) issued for such structure and/or by reference to appropriate records kept by the City. "CFD Administrator" means an official of CFD No. 2018-01, 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" means 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 of Tustin, acting as the Legislative Body of CFD No. 2018-01, or its designee. "City Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 2018-01 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. Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58138 "Commercial Property" means all Assessor's Parcels of Developed Property for which a building permit was issued for any type of non-residential use, excluding any resident amenities operated or managed by the property owner (or affiliate) or a property owner association. The property owner on an annual basis, shall provide the City with written certification of such excluded amenities. "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 -Long Beach -Anaheim, CA, all urban consumers, not seasonally adjusted" index (Series Id: CUURS49ASAO, CUUSS49ASAO), 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. "County" means the County of Orange. "Developed Property" means, for each Fiscal Year, all Assessor's Parcels of Taxable Property in which a building permit was issued on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied. "Dwelling Unit" means a building, or a unit within 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. "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 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. "Resolution of Formation" means the resolution forming CFD No. 2018-01. Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58B8 "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 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 (i) direct costs for 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. "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries of Zone 3 of CFD No. 2018-01 which are not exempt from the Special Tax pursuant to law or Section E below. "Undeveloped Property" means, for each Fiscal Year, all property not classified as Developed Property, Property Owner Association Property, or City Property. "Zone 3" means Zone 3 of CFD No. 2018-01 as geographically depicted on the boundary map. B. ASSIGNMENT TO LAND USE CLASSES Each Fiscal Year, all Assessor's Parcels within Zone 3 of CFD No. 2018-01 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. C. MAXIM U M SPECIAL TAX RATE 1. Developed Property a. Maximum Special Tax The Maximum Special Tax for Fiscal Year 2024-2025 for Developed Property is shown below in Table 1. Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58138 TARI F 1 Maximum Special Taxes for Developed Property for Fiscal Year 2024-2025 Zone 3 of Community Facilities District No. 2018-01 Land Use Fiscal Year 2024-2025 Class Land Use Maximum Special Tax $1,364.28 Per Dwelling Unit 1 Apartment Property (excluding Affordable Units) 2 Commercial Property $2.64 Per Building Sq. Ft. 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 Parcelshall bethesurn ofthe Maximum Special Taxes that can be levied for all Land Use Classes located on that Assessor's Parcel. C. Increase in the Maximum Special Tax On each July 1, commencing on July 1, 2025, the Maximum Special Tax for Developed Property shall be increased annually by the greater of (i) the change in the Consumer Price Index during the twelve (12) months prior to December of the previous Fiscal Year not to exceed three percent (3.00%) and (ii) two percent (2.00%).. The annual incremental adjustment shall be rounded to the nearest one - tenth of a percent. 2. Undeveloped Property No Special Taxes shall be levied on Undeveloped Property. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2025-2026 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 Zone 3 of CFD No. 2018-01. However, should an Assessor's Parcel no longer be classified as City Property or Property Owner Association Property, such Assessor's Parcel may, upon each reclassification, no longer be exempt from Special Taxes. No Special Tax shall be levied on any Dwelling Unit in Apartment Property classified as Affordable Units. However, should a Dwelling Unit no longer qualify as an Affordable Unit, such Dwelling Unit may, upon reclassification, no longer be exempt from Special Taxes. Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5F1 FA80A58B8 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 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 Zone 3 of CFD No. 2018-01, 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 into CFD No. 2018-01 from time to time. 1. 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. Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5F1 FA80A58B8 Owner E, XHIBIT C DESCRIPTION OF PROPERTY Assessor's Parcel Numbers City of Tustin 430-481-02 300 Centennial Way 430-481-03 Tustin, CA 92780 430-481-04 430-481-05 Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5F1 FA80A58B8 EXHIBIT D BOUNDARY MAP Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5FlFA8OA58B8 FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF TUSTIN THIS DAY OF 2025. THIS MAP SHOWS THE BOUNDARIES OF AREAS TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES) OF THE CITY OF TUSTIN, COUNTY OF ORANGE, STATE OF CALIFORNIA. THE BOUNDARIES OF WHICH COMMUNITY FACILITIES DISTRICT ARE SHOWN AND DESCRIBED ON THE MAP THEREOF, WHICH WAS PREVIOUSLY RECORDED ON MARCH 22, 2018, IN BOOK 106 OF MAPS OF ASSESSMENT AND AS INSTRUMENT NO. 2018000102019, IN THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OF ORANGE, STATE OF CALIFORNIA. ERICA YASUDA, CITY CLERK CITY OF TUSTIN I HEREBY CERTIFY THAT PROPOSED BOUNDARIES ZONE 3 (ANNEXATION FACILITIES DISTRICT NO. COUNTY OF ORANGE, WAS APPROVED BY THE CITY OF TUSTIN THEREOF HELD ON THE BY ITS RESOLUTION NO. ERICA YASUDA, CITY CLERK CITY OF TUSTIN SANTA ANA CFD 2018-01 ZONE 3 ANNEXATION NO. 2 THE WITHIN MAP SHOWING OF THE CITY OF TUSTIN NO. 2) TO COMMUNITY 2018-01 (PUBLIC SERVICES), STATE OF CALIFORNIA, THE CITY COUNCIL OF AT A REGULAR MEETING DAY OF 1 2025. VICINITY MAP NOT TO SCALE TUSTI IRVI PROPOSED BOUNDARY MAP ZONE 3 (ANNEXATION NO. 2) COMMUNITY FACILITIES DISTRICT NO. 2018-01 THIS ANNEXATION MAP CORRECTLY SHOWS THE LOT OR PARCEL OF LAND INCLUDED WITHIN THE BOUNDARIES OF THE COMMUNITY W ebb FACILITIES DISTRICT FOR DETAILS CONCERNING THE LINES AND MUNICIPAL FINANCE DIMENSIONS OF LOTS OR PARCELS REFER TO THE ORANGE COUNTY I ASSESSOR'S MAPS FOR FISCAL YEAR 2024-2025. (PUBLIC SERVICES) CITY OF TUSTIN, COUNTY OF ORANGE, STATE OF CALIFORNIA 000,0 000 400 /430-\481-02 130-481-03 N* =wfflwA..w SHEET 1 OF 1 FILED THIS DAY 0 F 1 2025 AT THE HOUR OF O'CLOCK _.M. IN BOOK OF MAPS OF ASSESSMENT AND COMMUNITY FACILITIES DISTRICTS AT PAGE AT THE REQUEST OF THE CITY OF TUSTIN IN THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OF ORANGE, STATE OF CALIFORNIA. FEE: INST NO.: HUGH NGUYEN COUNTY CLERK -RECORDER OF THE COUNTY OF ORANGE BY DEPUTY LEGEND ANNEXATION BOUNDARY PARCELBOUNDARY N VV E s W.O. M20228064 Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5F1 FA80A58B8 E XHIBIT E ZONE 3 NOTICE OF SPECIAL TAX LIEN Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5FlFA8OA58B8 RECORDING REQUESTED BY AND AFTER RECORDATION RETURN TO: City Clerk City of Tustin 300 Centennial Way Tustin, California 92780 NOTICE OF SPECIAL TAX LIEN CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2048-01 (PUBLIC SERVICES) ZONE 3 Pursuant to the requirements of Section 3117.5 of the Streets and Highways Code of California and the Mello -Roos Community Facilities Act of 1982, as amended (Chapter 2.5 of Part I of Division 2 of Title 5, commencing with Section 53311, of the California Government Code) (the "Act"), the undersigned City Clerk of the City of Tustin, County of Orange, State of California, hereby gives notice that a lien to secure payment of a special tax is hereby imposed by the City Council of the City of Tustin on the property described on Exhibit C hereto and incorporated herein (the "Property"). The special tax is authorized to be levied within Zone 3 of the City of Tustin Community Facilities District No. 2018-01 (Public Services) (the "Community Facilities District") which has now been officially designated and the lien of the special tax is a continuing lien which shall secure each annual levy of the special tax and which shall continue in force and effect until the special tax obligation is prepaid, permanently satisfied, and canceled in accordance with law or until the special tax ceases to be levied and a notice of cessation of special tax is recorded in accordance with Section 53330.5 of the Act. The territory originally included in the CFD is set forth in a boundary map of the CFD recorded on March 22, 2018, at 11:41 a.m. as Document No. 2018-000102019 at Book 106 of Maps of Assessment and Community Facilities Districts at Pages 22-23 m/m, in the office of the County Recorder of the County of Orange, State of California. The Property is included in the territory that is identified as "Future Annexation Area" on the boundary map of the CFD described in the preceding paragraph, and this Notice of Special Tax Lien gives notice that a lien to secure payment of a special tax is hereby imposed by the City Council of the City of Tustin on the Property. The lien of the special tax is a continuing lien that shall secure each annual levy of the special tax and that shall continue in force and effect until the special tax obligation is permanently satisfied, and canceled in accordance with law or until the special tax ceases to be levied and a notice of cessation of special tax is recorded in accordance with Section 53330.5 of the Government Code. Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5FlFA8OA58B8 The rate, method of apportiomnent, and manner of collection of the authorized special tax is as set forth in Exhibit B attached hereto and hereby made a part hereof. The special tax may not be prepaid. Notice is ftu-ther given that upon the recording of this notice in the office of the County Recorder of the County of Orange, the obligation to pay the special tax levy shall become a lien upon all nonexempt real property within Zone 3 of the Community Facilities District in accordance with Section 3115.5 of the California Streets and Highways Code. The name(s) of the owner(s) and the assessor's tax parcel number(s) of the real property included within Zone 3 of the Community Facilities District and not exempt from the special tax are as set forth in Exhibit C attached hereto and hereby made a part hereof. For further information concerning the current and estimated future tax liability of owners or purchasers of real property subject to this special tax lien, interested persons should contact the CFD Consultant of the City of Tustin, 300 Centennial Way, Tustin, California 92780, (714) 573- 3060. Dated: 92025 Erica N. Yasuda, City Clerk Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5FlFA8OA58B8 EXHIBIT A DESCRIPTION OF ELIGIBLE SERVICES It is intended that Zone 3 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"). Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5F1 FA80A58B8 EXHIBIT B RATE AND METHOD OF APPORTIONMENT ZONE 3 OF THE CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES) Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58138 If 1 —11 to-1101011TA 14 9: [#TRX91 S-110:191 1.4 9 1910MA 14 LIN I FOR ZONE 3 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 Zone 3 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") and collected each Fiscal Year commencing in Fiscal Year 2025-2026, in an amount determined by the City Council through the application of the appropriate Special Tax for "Developed Property," as described below. All the real property in Zone 3 of CFD No. 2018-01, 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: "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: 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, or any designee thereof of complying with CFD No. 2018-01 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, 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 for any other administrative purposes of CFD No. 2018-01, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Affordable Units" means Dwelling Units located on one or more Assessor's Parcels of Apartment Property that are subject to deed restrictions, resale restrictions, and/or regulatory agreements recorded in favor of the City providing for affordable housing. Affordable Units shall be units that are classified as either Lower Income or Very Low income (as defined in Sections 50093, 50079.5, and 50105, respectively, of the California Health and Safety Code.) "Apartment Property" means all Parcels of Developed Property for which a building permit has been issued for the purpose of constructing a building or buildings comprised Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58138 of attached Dwelling Units available for rental by the general public, and under common management, as determined by the Administrator. "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. "Authorized Services" means those services eligible to be funded by CFD No. 2018-01, as defined in the Resolution of Formation and authorized to be financed by CFD No. 2018-01 pursuant to Section 53313 of the Act. CFD No. 2018-01 shall finance Authorized Services only to the extent that they are in addition to those provided in the territory of CFD No. 2018-01 before the CFD was created and such Authorized Services may not supplant services already available within Zone 3 of CFD No. 2018-01 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. For purposes of clarity, a permit forthe construction of a parking garage issued separate from that of a building containing Dwelling Units shall not be considered a Building Permit under this Rate and Method of Apportionment. "Building Square Footage" or "BSF" for Commercial Property means all of the square footage within the perimeter of a non-residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of "Building Square Footage" for a non-residential structure will be based on the Building Permit(s) issued for such structure and/or by reference to appropriate records kept by the City. "CFD Administrator" means an official of CFD No. 2018-01, 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" means 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 of Tustin, acting as the Legislative Body of CFD No. 2018-01, or its designee. "City Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 2018-01 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. Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58138 "Commercial Property" means all Assessor's Parcels of Developed Property for which a building permit was issued for any type of non-residential use, excluding any resident amenities operated or managed by the property owner (or affiliate) or a property owner association. The property owner on an annual basis, shall provide the City with written certification of such excluded amenities. "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 -Long Beach -Anaheim, CA, all urban consumers, not seasonally adjusted" index (Series Id: CUURS49ASAO, CUUSS49ASAO), 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. "County" means the County of Orange. "Developed Property" means, for each Fiscal Year, all Assessor's Parcels of Taxable Property in which a building permit was issued on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied. "Dwelling Unit" means a building, or a unit within 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. "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 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. "Resolution of Formation" means the resolution forming CFD No. 2018-01. Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58B8 "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 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 (i) direct costs for 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. "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries of Zone 3 of CFD No. 2018-01 which are not exempt from the Special Tax pursuant to law or Section E below. "Undeveloped Property" means, for each Fiscal Year, all property not classified as Developed Property, Property Owner Association Property, or City Property. "Zone 3" means Zone 3 of CFD No. 2018-01 as geographically depicted on the boundary map. B. ASSIGNMENT TO LAND USE CLASSES Each Fiscal Year, all Assessor's Parcels within Zone 3 of CFD No. 2018-01 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. C. MAXIM U M SPECIAL TAX RATE 1. Developed Property a. Maximum Special Tax The Maximum Special Tax for Fiscal Year 2024-2025 for Developed Property is shown below in Table 1. Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58138 TARI F 1 Maximum Special Taxes for Developed Property for Fiscal Year 2024-2025 Zone 3 of Community Facilities District No. 2018-01 Land Use Fiscal Year 2024-2025 Class Land Use Maximum Special Tax $1,364.28 Per Dwelling Unit 1 Apartment Property (excluding Affordable Units) 2 Commercial Property $2.64 Per Building Sq. Ft. 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 Parcelshall bethesurn ofthe Maximum Special Taxes that can be levied for all Land Use Classes located on that Assessor's Parcel. C. Increase in the Maximum Special Tax On each July 1, commencing on July 1, 2025, the Maximum Special Tax for Developed Property shall be increased annually by the greater of (i) the change in the Consumer Price Index during the twelve (12) months prior to December of the previous Fiscal Year not to exceed three percent (3.00%) and (ii) two percent (2.00%).. The annual incremental adjustment shall be rounded to the nearest one - tenth of a percent. 2. Undeveloped Property No Special Taxes shall be levied on Undeveloped Property. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2025-2026 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 Zone 3 of CFD No. 2018-01. However, should an Assessor's Parcel no longer be classified as City Property or Property Owner Association Property, such Assessor's Parcel may, upon each reclassification, no longer be exempt from Special Taxes. No Special Tax shall be levied on any Dwelling Unit in Apartment Property classified as Affordable Units. However, should a Dwelling Unit no longer qualify as an Affordable Unit, such Dwelling Unit may, upon reclassification, no longer be exempt from Special Taxes. Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5F1 FA80A58B8 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 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 Zone 3 of CFD No. 2018-01, 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 into CFD No. 2018-01 from time to time. 1. 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. Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5FlFA8OA58B8 EXHIBIT C PROPERTY IN ZONE 3 OF THE CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES) The property in Zone 3 of the City of Tustin Community Facilities District No. 2018-01 (Public Services) is owned, and identified as Orange County Assessor's Parcel Numbers, as shown below: Owner City of Tustin 300 Centennial Way Tustin, CA 92780 Assessor's Parcel Numbers 430-481-02 430-481-03 430-481-04 430-481-05 Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5FlFA8OA58B8 RECORDING REQUESTED BY AND AFTER RECORDATION RETURN TO: City Clerk City of Tustin 300 Centennial Way Tustin, California 92780 NOTICE OF CESSATION OF SPECIAL TAX LIEN CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2013-01 Pursuant to the requirements of Section 53330.5 of the Mello -Roos Community Facilities Act of 1982, the undersigned City Clerk of the City of Tustin, hereby gives notice that the obligation to pay the special taxes levied pursuant to the Rate and Method of Apportiom-nent for City of Tustin Community Facilities District No. 13-01 (Services) (the "CFD No. 13-01 Special Taxes") on the parcels of land identified in Exhibit A attached hereto (the "CFD No. 2018-01 Zone 3 Parcels") is deemed to have been permanently satisfied and terminated and the lien thereon established by the Notice of Special Tax Lien recorded in the Orange County Recorder's office on May 16, 2013 as Document No. 2013-000296640 (the "Notice of Special Tax Lien") has been cancelled. The assessor's parcel number of each CFD No. 2018-01 Parcel subject to the lien so cancelled, and the name of the owner of record of each such CFD No. 2018-01 Zone 3 Parcel is set forth on Exhibit A attached hereto. This Notice of Cessation of Special Tax Lien applies only to the lien on the CFD No. 2018- 01 Zone 3 Parcels established by the Notice of Special Tax Lien for the CFD No. 13-01 Special Taxes. Dated: 2025 Erica N. Yasuda, City Clerk Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5F1 FA80A58B8 EXHIBIT A CFD NO. 2018-01 ZONE 3 PARCELS Owner City of Tustin 300 Centennial Way Tustin, CA 92780 Assessor's Parcel Numbers 430-481-02 430-481-03 430-481-04 430-481-05 Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5FlFA8OA58B8 RESOLUTION NO. 25-40 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, DECLARING INTENTION TO ANNEX TERRITORY TO THE CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES), APPROVING A BOUNDARY MAP OF THE ANNEXATION PROPERTY AND DIRECTING THE CITY CLERK TO RECORD THE BOUNDARY MAP, THE NOTICE OF THE SPECIAL TAX LIEN FOR COMMUNITY FACILITIES DISTRICT NO. 2018-01 ZONE 3, AND THE NOTICE OF CESSATION OF SPECIAL TAX LIEN FOR COMMUNITY FACILITIES DISTRICT NO. 2013-01 WHEREAS, on March 7, 2018, the City Council adopted Resolution No. 18-15, approving formation of a Community Facilities District (the "Resolution of Formation"), ordering the formation of the "City of Tustin Community Facilities District No. 2018-01 (Public Services)" (the "CFD") and a "City of Tustin Community Facilities District No. 2018-01 (Public Services) (Future Annexation Area)", authorizing the levy of a special tax on property within the CFD and establishing an appropriations limit for the CFD, all pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, constituting California Government Code Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with Section 53311 (the "Mello -Roos Act"); and WHEREAS, in the Resolution of Formation, the City Council resolved that parcels within the Future Annexation Area shall be annexed to the CFD only with the unanimous approval (each, a "Unanimous Approval") of the owner or owners of each parcel or parcels at the time that parcel or those parcels are annexed, without any requirement for further public hearings or additional proceedings; and WHEREAS, in Ordinance No. 1495, adopted by the City Council on May 1, 2018 (the "Special Tax Ordinance"), the City Council authorized and levied special taxes within the CFD pursuant to the Mello -Roos Act, at the rate and in accordance with the rate and method of apportionment of special tax (the "Improvement Area No. 1 Rate and Method") set forth in the Resolution of Formation, and further ordered that the provisions of the Special Tax Ordinance shall apply not only to the initial territory included in the CFD but also to parcels included in the Future Annexation Area that are annexed to the CFD at the rate or rates to be approved unanimously by the owner or owners of each parcel or parcels to be annexed to the CFD; and WHEREAS, the City Council has been provided with a Unanimous Approval executed by the owner of the territory described in Exhibit C, which are located in the Future Annexation Area, as such parcels are described on the attached Exhibit C and shown in the proposed boundary map attached as Exhibit E (the "Annexation Property"); and Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58138 WHEREAS, the owner of the Annexation Property is the City of Tustin, and pursuant to Section 53317(f) of the Act, the City makes the following finding: the Property is within the territory of a military base that is closed. WHEREAS, upon annexation of the Annexation Property into the CFD as directed and confirmed in a Unanimous Approval signed by the owner of fee title to all parcels of real property located in the Annexation Property, special taxes shall be levied against all taxable (non-exempt) property in the Annexation Property in accordance with the Rate and Method of Apportionment of Special Tax for the Annexation Property in substantially the form attached hereto as Exhibit B and incorporated herein to provide the services described in Exhibit A; and WHEREAS, a Notice of Special Tax Lien in substantially the form attached hereto as Exhibit D shall be recorded against the Annexation Property in the official land records of Orange County, California; and WHEREAS, an annual appropriations limit for the Annexation Property shall be established as provided below; and WHEREAS, in order to comply with Mello -Roos Act Section 53339.8, the City Council wishes to determine that the Annexation Property is added to the CFD. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF TUSTIN, THAT: 1. The foregoing recitals are hereby incorporated and adopted as the findings of the City Council; and 2. The City Council hereby determines as follows: a. That the Annexation Property is added to the CFD, is hereby designated as an improvement area within the CFD to be known as Zone 3 of the CFD, b. That the boundary map of the Annexation Property attached as Exhibit E is hereby approved, c. That the City Clerk is hereby ordered and directed to record notice of the special tax lien for the Annexation Property attached as Exhibit D, d. That an annual appropriations limit of $4,000,000 is hereby established for the Annexation Property for Fiscal Year 2025-26, which limit shall be increased annually in accordance with applicable law. e. That the City Clerk is hereby ordered and directed to record the Notice of Cessation for the Annexation Property attached as Exhibit F. 3. This Resolution shall take effect immediately upon its adoption. Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58138 PASSED and by the City Council of the City of Tustin at a regular meeting on the 17t' day of June, 2025. AUSTIN LUMBARD, Mayor ATTEST: ERICA N. YASUDA, City Clerk APPROVED AS TO FORM: ESigned by: 4*24CD44F DAVID E. KENDIG City Attorney STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF TUSTIN 1, Erica N. YASUDA, 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. 25-40 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 17th day of June, 2025 by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: ERICA N. YASUDA, City Clerk Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58138 EXHIBIT A AUTHORIZED SERVICES It is intended that Zone 3 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"). Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58138 EXHIBIT B PROPOSED RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR ZONE 3 Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58138 If 1 —11 to-1101011TA 14 9: [#TRX91 S-110:191 1.4 9 1910MA 14 LIN I FOR ZONE 3 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 Zone 3 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") and collected each Fiscal Year commencing in Fiscal Year 2025-2026, in an amount determined by the City Council through the application of the appropriate Special Tax for "Developed Property," as described below. All the real property in Zone 3 of CFD No. 2018-01, 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: "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: 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, or any designee thereof of complying with CFD No. 2018-01 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, 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 for any other administrative purposes of CFD No. 2018-01, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Affordable Units" means Dwelling Units located on one or more Assessor's Parcels of Apartment Property that are subject to deed restrictions, resale restrictions, and/or regulatory agreements recorded in favor of the City providing for affordable housing. Affordable Units shall be units that are classified as either Lower Income or Very Low income (as defined in Sections 50093, 50079.5, and 50105, respectively, of the California Health and Safety Code.) "Apartment Property" means all Parcels of Developed Property for which a building permit has been issued for the purpose of constructing a building or buildings comprised Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58138 of attached Dwelling Units available for rental by the general public, and under common management, as determined by the Administrator. "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. "Authorized Services" means those services eligible to be funded by CFD No. 2018-01, as defined in the Resolution of Formation and authorized to be financed by CFD No. 2018-01 pursuant to Section 53313 of the Act. CFD No. 2018-01 shall finance Authorized Services only to the extent that they are in addition to those provided in the territory of CFD No. 2018-01 before the CFD was created and such Authorized Services may not supplant services already available within Zone 3 of CFD No. 2018-01 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. For purposes of clarity, a permit forthe construction of a parking garage issued separate from that of a building containing Dwelling Units shall not be considered a Building Permit under this Rate and Method of Apportionment. "Building Square Footage" or "BSF" for Commercial Property means all of the square footage within the perimeter of a non-residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of "Building Square Footage" for a non-residential structure will be based on the Building Permit(s) issued for such structure and/or by reference to appropriate records kept by the City. "CFD Administrator" means an official of CFD No. 2018-01, 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" means 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 of Tustin, acting as the Legislative Body of CFD No. 2018-01, or its designee. "City Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 2018-01 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. Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58138 "Commercial Property" means all Assessor's Parcels of Developed Property for which a building permit was issued for any type of non-residential use, excluding any resident amenities operated or managed by the property owner (or affiliate) or a property owner association. The property owner on an annual basis, shall provide the City with written certification of such excluded amenities. "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 -Long Beach -Anaheim, CA, all urban consumers, not seasonally adjusted" index (Series Id: CUURS49ASAO, CUUSS49ASAO), 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. "County" means the County of Orange. "Developed Property" means, for each Fiscal Year, all Assessor's Parcels of Taxable Property in which a building permit was issued on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied. "Dwelling Unit" means a building, or a unit within 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. "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 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. "Resolution of Formation" means the resolution forming CFD No. 2018-01. Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58B8 "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 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 (i) direct costs for 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. "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries of Zone 3 of CFD No. 2018-01 which are not exempt from the Special Tax pursuant to law or Section E below. "Undeveloped Property" means, for each Fiscal Year, all property not classified as Developed Property, Property Owner Association Property, or City Property. "Zone 3" means Zone 3 of CFD No. 2018-01 as geographically depicted on the boundary map. B. ASSIGNMENT TO LAND USE CLASSES Each Fiscal Year, all Assessor's Parcels within Zone 3 of CFD No. 2018-01 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. C. MAXIM U M SPECIAL TAX RATE 1. Developed Property a. Maximum Special Tax The Maximum Special Tax for Fiscal Year 2024-2025 for Developed Property is shown below in Table 1. Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58138 TARI F 1 Maximum Special Taxes for Developed Property for Fiscal Year 2024-2025 Zone 3 of Community Facilities District No. 2018-01 Land Use Fiscal Year 2024-2025 Class Land Use Maximum Special Tax $1,364.28 Per Dwelling Unit 1 Apartment Property (excluding Affordable Units) 2 Commercial Property $2.64 Per Building Sq. Ft. 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 Parcelshall bethesurn ofthe Maximum Special Taxes that can be levied for all Land Use Classes located on that Assessor's Parcel. C. Increase in the Maximum Special Tax On each July 1, commencing on July 1, 2025, the Maximum Special Tax for Developed Property shall be increased annually by the greater of (i) the change in the Consumer Price Index during the twelve (12) months prior to December of the previous Fiscal Year not to exceed three percent (3.00%) and (ii) two percent (2.00%).. The annual incremental adjustment shall be rounded to the nearest one - tenth of a percent. 2. Undeveloped Property No Special Taxes shall be levied on Undeveloped Property. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2025-2026 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 Zone 3 of CFD No. 2018-01. However, should an Assessor's Parcel no longer be classified as City Property or Property Owner Association Property, such Assessor's Parcel may, upon each reclassification, no longer be exempt from Special Taxes. No Special Tax shall be levied on any Dwelling Unit in Apartment Property classified as Affordable Units. However, should a Dwelling Unit no longer qualify as an Affordable Unit, such Dwelling Unit may, upon reclassification, no longer be exempt from Special Taxes. Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5F1 FA80A58B8 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 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 Zone 3 of CFD No. 2018-01, 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 into CFD No. 2018-01 from time to time. 1. 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. Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5FlFA8OA58B8 EXHIBIT C DESCRIPTION OF PROPERTY Owner Assessor's Parcel Number City of Tustin 430-481-02 300 Centennial Way 430-481-03 Tustin, CA 92780 430-481-04 430-481-05 Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58138 EXHIBIT D NOTICE OF SPECIAL TAX LIEN (Annexation Property) Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5FlFA8OA58B8 RECORDING REQUESTED BY AND AFTER RECORDATION RETURN TO: City Clerk City of Tustin 300 Centennial Way Tustin, California 92780 NOTICE OF SPECIAL TAX LIEN CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2048-01 (PUBLIC SERVICES) ZONE 3 Pursuant to the requirements of Section 3117.5 of the Streets and Highways Code of California and the Mello -Roos Community Facilities Act of 1982, as amended (Chapter 2.5 of Part I of Division 2 of Title 5, commencing with Section 53311, of the California Government Code) (the "Act"), the undersigned City Clerk of the City of Tustin, County of Orange, State of California, hereby gives notice that a lien to secure payment of a special tax is hereby imposed by the City Council of the City of Tustin on the property described on Exhibit C hereto and incorporated herein (the "Property"). The special tax is authorized to be levied within Zone 3 of the City of Tustin Community Facilities District No. 2018-01 (Public Services) (the "Community Facilities District") which has now been officially designated and the lien of the special tax is a continuing lien which shall secure each annual levy of the special tax and which shall continue in force and effect until the special tax obligation is prepaid, permanently satisfied, and canceled in accordance with law or until the special tax ceases to be levied and a notice of cessation of special tax is recorded in accordance with Section 53330.5 of the Act. The territory originally included in the CFD is set forth in a boundary map of the CFD recorded on March 22, 2018, at 11:41 a.m. as Document No. 2018-000102019 at Book 106 of Maps of Assessment and Community Facilities Districts at Pages 22-23 m/m, in the office of the County Recorder of the County of Orange, State of California. The Property is included in the territory that is identified as "Future Annexation Area" on the boundary map of the CFD described in the preceding paragraph, and this Notice of Special Tax Lien gives notice that a lien to secure payment of a special tax is hereby imposed by the City Council of the City of Tustin on the Property. The lien of the special tax is a continuing lien that shall secure each annual levy of the special tax and that shall continue in force and effect until the special tax obligation is permanently satisfied, and canceled in accordance with law or until the special tax ceases to be levied and a notice of cessation of special tax is recorded in accordance with Section 53330.5 of the Government Code. Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5FlFA8OA58B8 The rate, method of apportiomnent, and manner of collection of the authorized special tax is as set forth in Exhibit B attached hereto and hereby made a part hereof. The special tax may not be prepaid. Notice is ftu-ther given that upon the recording of this notice in the office of the County Recorder of the County of Orange, the obligation to pay the special tax levy shall become a lien upon all nonexempt real property within Zone 3 of the Community Facilities District in accordance with Section 3115.5 of the California Streets and Highways Code. The name(s) of the owner(s) and the assessor's tax parcel number(s) of the real property included within Zone 3 of the Community Facilities District and not exempt from the special tax are as set forth in Exhibit C attached hereto and hereby made a part hereof. For further information concerning the current and estimated future tax liability of owners or purchasers of real property subject to this special tax lien, interested persons should contact the CFD Consultant of the City of Tustin, 300 Centennial Way, Tustin, California 92780, (714) 573- 3060. Dated: 92025 Erica N. Yasuda, City Clerk Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5FlFA8OA58B8 EXHIBIT A DESCRIPTION OF ELIGIBLE SERVICES It is intended that Zone 3 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"). Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5F1 FA80A58B8 EXHIBIT B RATE AND METHOD OF APPORTIONMENT ZONE 3 OF THE CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES) Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58138 If 1 —11 to-1101011TA 14 9: [#TRX91 S-110:191 1.4 9 1910MA 14 LIN I FOR ZONE 3 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 Zone 3 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") and collected each Fiscal Year commencing in Fiscal Year 2025-2026, in an amount determined by the City Council through the application of the appropriate Special Tax for "Developed Property," as described below. All the real property in Zone 3 of CFD No. 2018-01, 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: "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: 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, or any designee thereof of complying with CFD No. 2018-01 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, 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 for any other administrative purposes of CFD No. 2018-01, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Affordable Units" means Dwelling Units located on one or more Assessor's Parcels of Apartment Property that are subject to deed restrictions, resale restrictions, and/or regulatory agreements recorded in favor of the City providing for affordable housing. Affordable Units shall be units that are classified as either Lower Income or Very Low income (as defined in Sections 50093, 50079.5, and 50105, respectively, of the California Health and Safety Code.) "Apartment Property" means all Parcels of Developed Property for which a building permit has been issued for the purpose of constructing a building or buildings comprised Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58138 of attached Dwelling Units available for rental by the general public, and under common management, as determined by the Administrator. "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. "Authorized Services" means those services eligible to be funded by CFD No. 2018-01, as defined in the Resolution of Formation and authorized to be financed by CFD No. 2018-01 pursuant to Section 53313 of the Act. CFD No. 2018-01 shall finance Authorized Services only to the extent that they are in addition to those provided in the territory of CFD No. 2018-01 before the CFD was created and such Authorized Services may not supplant services already available within Zone 3 of CFD No. 2018-01 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. For purposes of clarity, a permit forthe construction of a parking garage issued separate from that of a building containing Dwelling Units shall not be considered a Building Permit under this Rate and Method of Apportionment. "Building Square Footage" or "BSF" for Commercial Property means all of the square footage within the perimeter of a non-residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of "Building Square Footage" for a non-residential structure will be based on the Building Permit(s) issued for such structure and/or by reference to appropriate records kept by the City. "CFD Administrator" means an official of CFD No. 2018-01, 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" means 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 of Tustin, acting as the Legislative Body of CFD No. 2018-01, or its designee. "City Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 2018-01 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. Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58138 "Commercial Property" means all Assessor's Parcels of Developed Property for which a building permit was issued for any type of non-residential use, excluding any resident amenities operated or managed by the property owner (or affiliate) or a property owner association. The property owner on an annual basis, shall provide the City with written certification of such excluded amenities. "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 -Long Beach -Anaheim, CA, all urban consumers, not seasonally adjusted" index (Series Id: CUURS49ASAO, CUUSS49ASAO), 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. "County" means the County of Orange. "Developed Property" means, for each Fiscal Year, all Assessor's Parcels of Taxable Property in which a building permit was issued on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied. "Dwelling Unit" means a building, or a unit within 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. "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 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. "Resolution of Formation" means the resolution forming CFD No. 2018-01. Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58B8 "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 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 (i) direct costs for 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. "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries of Zone 3 of CFD No. 2018-01 which are not exempt from the Special Tax pursuant to law or Section E below. "Undeveloped Property" means, for each Fiscal Year, all property not classified as Developed Property, Property Owner Association Property, or City Property. "Zone 3" means Zone 3 of CFD No. 2018-01 as geographically depicted on the boundary map. B. ASSIGNMENT TO LAND USE CLASSES Each Fiscal Year, all Assessor's Parcels within Zone 3 of CFD No. 2018-01 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. C. MAXIM U M SPECIAL TAX RATE 1. Developed Property a. Maximum Special Tax The Maximum Special Tax for Fiscal Year 2024-2025 for Developed Property is shown below in Table 1. Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58138 TARI F 1 Maximum Special Taxes for Developed Property for Fiscal Year 2024-2025 Zone 3 of Community Facilities District No. 2018-01 Land Use Fiscal Year 2024-2025 Class Land Use Maximum Special Tax $1,364.28 Per Dwelling Unit 1 Apartment Property (excluding Affordable Units) 2 Commercial Property $2.64 Per Building Sq. Ft. 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 Parcelshall bethesurn ofthe Maximum Special Taxes that can be levied for all Land Use Classes located on that Assessor's Parcel. C. Increase in the Maximum Special Tax On each July 1, commencing on July 1, 2025, the Maximum Special Tax for Developed Property shall be increased annually by the greater of (i) the change in the Consumer Price Index during the twelve (12) months prior to December of the previous Fiscal Year not to exceed three percent (3.00%) and (ii) two percent (2.00%).. The annual incremental adjustment shall be rounded to the nearest one - tenth of a percent. 2. Undeveloped Property No Special Taxes shall be levied on Undeveloped Property. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2025-2026 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 Zone 3 of CFD No. 2018-01. However, should an Assessor's Parcel no longer be classified as City Property or Property Owner Association Property, such Assessor's Parcel may, upon each reclassification, no longer be exempt from Special Taxes. No Special Tax shall be levied on any Dwelling Unit in Apartment Property classified as Affordable Units. However, should a Dwelling Unit no longer qualify as an Affordable Unit, such Dwelling Unit may, upon reclassification, no longer be exempt from Special Taxes. Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5F1 FA80A58B8 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 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 Zone 3 of CFD No. 2018-01, 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 into CFD No. 2018-01 from time to time. 1. 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. Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5FlFA8OA58B8 EXHIBIT C PROPERTY IN ZONE 3 OF THE CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES) The property in Zone 3 of the City of Tustin Community Facilities District No. 2018-01 (Public Services) is owned, and identified as Orange County Assessor's Parcel Numbers, as shown below: Owner City of Tustin 300 Centennial Way Tustin, CA 92780 Assessor's Parcel Numbers 430-481-02 430-481-03 430-481-04 430-481-05 Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58138 EXHIBIT E BOUNDARY MAP (Annexation Property) Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5FlFA8OA58B8 FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF TUSTIN THIS DAY OF 2025. THIS MAP SHOWS THE BOUNDARIES OF AREAS TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES) OF THE CITY OF TUSTIN, COUNTY OF ORANGE, STATE OF CALIFORNIA. THE BOUNDARIES OF WHICH COMMUNITY FACILITIES DISTRICT ARE SHOWN AND DESCRIBED ON THE MAP THEREOF, WHICH WAS PREVIOUSLY RECORDED ON MARCH 22, 2018, IN BOOK 106 OF MAPS OF ASSESSMENT AND AS INSTRUMENT NO. 2018000102019, IN THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OF ORANGE, STATE OF CALIFORNIA. ERICA YASUDA, CITY CLERK CITY OF TUSTIN I HEREBY CERTIFY THAT PROPOSED BOUNDARIES ZONE 3 (ANNEXATION FACILITIES DISTRICT NO. COUNTY OF ORANGE, WAS APPROVED BY THE CITY OF TUSTIN THEREOF HELD ON THE BY ITS RESOLUTION NO. ERICA YASUDA, CITY CLERK CITY OF TUSTIN SANTA ANA CFD 2018-01 ZONE 3 ANNEXATION NO. 2 THE WITHIN MAP SHOWING OF THE CITY OF TUSTIN NO. 2) TO COMMUNITY 2018-01 (PUBLIC SERVICES), STATE OF CALIFORNIA, THE CITY COUNCIL OF AT A REGULAR MEETING DAY OF 1 2025. VICINITY MAP NOT TO SCALE TUSTI IRVI PROPOSED BOUNDARY MAP ZONE 3 (ANNEXATION NO. 2) COMMUNITY FACILITIES DISTRICT NO. 2018-01 THIS ANNEXATION MAP CORRECTLY SHOWS THE LOT OR PARCEL OF LAND INCLUDED WITHIN THE BOUNDARIES OF THE COMMUNITY W ebb FACILITIES DISTRICT FOR DETAILS CONCERNING THE LINES AND MUNICIPAL FINANCE DIMENSIONS OF LOTS OR PARCELS REFER TO THE ORANGE COUNTY I ASSESSOR'S MAPS FOR FISCAL YEAR 2024-2025. (PUBLIC SERVICES) CITY OF TUSTIN, COUNTY OF ORANGE, STATE OF CALIFORNIA 000,0 000 400 /430-\481-02 130-481-03 N* =wfflwA..w SHEET 1 OF 1 FILED THIS DAY 0 F 1 2025 AT THE HOUR OF O'CLOCK _.M. IN BOOK OF MAPS OF ASSESSMENT AND COMMUNITY FACILITIES DISTRICTS AT PAGE AT THE REQUEST OF THE CITY OF TUSTIN IN THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OF ORANGE, STATE OF CALIFORNIA. FEE: INST NO.: HUGH NGUYEN COUNTY CLERK -RECORDER OF THE COUNTY OF ORANGE BY DEPUTY LEGEND ANNEXATION BOUNDARY PARCELBOUNDARY N VV E s W.O. M20228064 Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58138 EXHIBIT F NOTICE OF CESSATION OF SPECIAL TAX (Annexation Property) Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5FlFA8OA58B8 RECORDING REQUESTED BY AND AFTER RECORDATION RETURN TO: City Clerk City of Tustin 300 Centennial Way Tustin, California 92780 NOTICE OF CESSATION OF SPECIAL TAX LIEN CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2013-01 Pursuant to the requirements of Section 53330.5 of the Mello -Roos Community Facilities Act of 1982, the undersigned City Clerk of the City of Tustin, hereby gives notice that the obligation to pay the special taxes levied pursuant to the Rate and Method of Apportiom-nent for City of Tustin Community Facilities District No. 13-01 (Services) (the "CFD No. 13-01 Special Taxes") on the parcels of land identified in Exhibit A attached hereto (the "CFD No. 2018-01 Zone 3 Parcels") is deemed to have been permanently satisfied and terminated and the lien thereon established by the Notice of Special Tax Lien recorded in the Orange County Recorder's office on May 16, 2013 as Document No. 2013-000296640 (the "Notice of Special Tax Lien") has been cancelled. The assessor's parcel number of each CFD No. 2018-01 Parcel subject to the lien so cancelled, and the name of the owner of record of each such CFD No. 2018-01 Zone 3 Parcel is set forth on Exhibit A attached hereto. This Notice of Cessation of Special Tax Lien applies only to the lien on the CFD No. 2018- 01 Zone 3 Parcels established by the Notice of Special Tax Lien for the CFD No. 13-01 Special Taxes. Dated: 2025 Erica N. Yasuda, City Clerk Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5F1 FA80A58B8 EXHIBIT A CFD NO. 2018-01 ZONE 3 PARCELS Owner City of Tustin 300 Centennial Way Tustin, CA 92780 Assessor's Parcel Numbers 430-481-02 430-481-03 430-481-04 430-481-05 Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5FlFA8OA58B8 FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF TUSTIN THIS DAY OF 2025. THIS MAP SHOWS THE BOUNDARIES OF AREAS TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES) OF THE CITY OF TUSTIN, COUNTY OF ORANGE, STATE OF CALIFORNIA. THE BOUNDARIES OF WHICH COMMUNITY FACILITIES DISTRICT ARE SHOWN AND DESCRIBED ON THE MAP THEREOF, WHICH WAS PREVIOUSLY RECORDED ON MARCH 22, 2018, IN BOOK 106 OF MAPS OF ASSESSMENT AND AS INSTRUMENT NO. 2018000102019, IN THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OF ORANGE, STATE OF CALIFORNIA. ERICA YASUDA, CITY CLERK CITY OF TUSTIN I HEREBY CERTIFY THAT PROPOSED BOUNDARIES ZONE 3 (ANNEXATION FACILITIES DISTRICT NO. COUNTY OF ORANGE, WAS APPROVED BY THE CITY OF TUSTIN THEREOF HELD ON THE BY ITS RESOLUTION NO. ERICA YASUDA, CITY CLERK CITY OF TUSTIN SANTA ANA CFD 2018-01 ZONE 3 ANNEXATION NO. 2 THE WITHIN MAP SHOWING OF THE CITY OF TUSTIN NO. 2) TO COMMUNITY 2018-01 (PUBLIC SERVICES), STATE OF CALIFORNIA, THE CITY COUNCIL OF AT A REGULAR MEETING DAY OF 1 2025. VICINITY MAP NOT TO SCALE TUSTI IRVI PROPOSED BOUNDARY MAP ZONE 3 (ANNEXATION NO. 2) COMMUNITY FACILITIES DISTRICT NO. 2018-01 THIS ANNEXATION MAP CORRECTLY SHOWS THE LOT OR PARCEL OF LAND INCLUDED WITHIN THE BOUNDARIES OF THE COMMUNITY W ebb FACILITIES DISTRICT FOR DETAILS CONCERNING THE LINES AND MUNICIPAL FINANCE DIMENSIONS OF LOTS OR PARCELS REFER TO THE ORANGE COUNTY I ASSESSOR'S MAPS FOR FISCAL YEAR 2024-2025. (PUBLIC SERVICES) CITY OF TUSTIN, COUNTY OF ORANGE, STATE OF CALIFORNIA 000,0 000 400 /430-\481-02 130-481-03 N* =wfflwA..w SHEET 1 OF 1 FILED THIS DAY 0 F 1 2025 AT THE HOUR OF O'CLOCK _.M. IN BOOK OF MAPS OF ASSESSMENT AND COMMUNITY FACILITIES DISTRICTS AT PAGE AT THE REQUEST OF THE CITY OF TUSTIN IN THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OF ORANGE, STATE OF CALIFORNIA. FEE: INST NO.: HUGH NGUYEN COUNTY CLERK -RECORDER OF THE COUNTY OF ORANGE BY DEPUTY LEGEND ANNEXATION BOUNDARY PARCELBOUNDARY N VV E s W.O. M20228064 Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5FlFA8OA58B8 RECORDING REQUESTED BY AND AFTER RECORDATION RETURN TO: City Clerk City of Tustin 300 Centennial Way Tustin, California 92780 NOTICE OF SPECIAL TAX LIEN CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2048-01 (PUBLIC SERVICES) ZONE 3 Pursuant to the requirements of Section 3117.5 of the Streets and Highways Code of California and the Mello -Roos Community Facilities Act of 1982, as amended (Chapter 2.5 of Part I of Division 2 of Title 5, commencing with Section 53311, of the California Government Code) (the "Act"), the undersigned City Clerk of the City of Tustin, County of Orange, State of California, hereby gives notice that a lien to secure payment of a special tax is hereby imposed by the City Council of the City of Tustin on the property described on Exhibit C hereto and incorporated herein (the "Property"). The special tax is authorized to be levied within Zone 3 of the City of Tustin Community Facilities District No. 2018-01 (Public Services) (the "Community Facilities District") which has now been officially designated and the lien of the special tax is a continuing lien which shall secure each annual levy of the special tax and which shall continue in force and effect until the special tax obligation is prepaid, permanently satisfied, and canceled in accordance with law or until the special tax ceases to be levied and a notice of cessation of special tax is recorded in accordance with Section 53330.5 of the Act. The territory originally included in the CFD is set forth in a boundary map of the CFD recorded on March 22, 2018, at 11:41 a.m. as Document No. 2018-000102019 at Book 106 of Maps of Assessment and Community Facilities Districts at Pages 22-23 m/m, in the office of the County Recorder of the County of Orange, State of California. The Property is included in the territory that is identified as "Future Annexation Area" on the boundary map of the CFD described in the preceding paragraph, and this Notice of Special Tax Lien gives notice that a lien to secure payment of a special tax is hereby imposed by the City Council of the City of Tustin on the Property. The lien of the special tax is a continuing lien that shall secure each annual levy of the special tax and that shall continue in force and effect until the special tax obligation is permanently satisfied, and canceled in accordance with law or until the special tax ceases to be levied and a notice of cessation of special tax is recorded in accordance with Section 53330.5 of the Government Code. Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5FlFA8OA58B8 The rate, method of apportiomnent, and manner of collection of the authorized special tax is as set forth in Exhibit B attached hereto and hereby made a part hereof. The special tax may not be prepaid. Notice is ftu-ther given that upon the recording of this notice in the office of the County Recorder of the County of Orange, the obligation to pay the special tax levy shall become a lien upon all nonexempt real property within Zone 3 of the Community Facilities District in accordance with Section 3115.5 of the California Streets and Highways Code. The name(s) of the owner(s) and the assessor's tax parcel number(s) of the real property included within Zone 3 of the Community Facilities District and not exempt from the special tax are as set forth in Exhibit C attached hereto and hereby made a part hereof. For further information concerning the current and estimated future tax liability of owners or purchasers of real property subject to this special tax lien, interested persons should contact the CFD Consultant of the City of Tustin, 300 Centennial Way, Tustin, California 92780, (714) 573- 3060. Dated: 92025 Erica N. Yasuda, City Clerk Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5FlFA8OA58B8 EXHIBIT A DESCRIPTION OF ELIGIBLE SERVICES It is intended that Zone 3 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"). Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5F1 FA80A58B8 EXHIBIT B RATE AND METHOD OF APPORTIONMENT ZONE 3 OF THE CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES) Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58138 If 1 —11 to-1101011TA 14 9: [#TRX91 S-110:191 1.4 9 1910MA 14 LIN I FOR ZONE 3 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 Zone 3 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") and collected each Fiscal Year commencing in Fiscal Year 2025-2026, in an amount determined by the City Council through the application of the appropriate Special Tax for "Developed Property," as described below. All the real property in Zone 3 of CFD No. 2018-01, 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: "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: 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, or any designee thereof of complying with CFD No. 2018-01 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, 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 for any other administrative purposes of CFD No. 2018-01, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Affordable Units" means Dwelling Units located on one or more Assessor's Parcels of Apartment Property that are subject to deed restrictions, resale restrictions, and/or regulatory agreements recorded in favor of the City providing for affordable housing. Affordable Units shall be units that are classified as either Lower Income or Very Low income (as defined in Sections 50093, 50079.5, and 50105, respectively, of the California Health and Safety Code.) "Apartment Property" means all Parcels of Developed Property for which a building permit has been issued for the purpose of constructing a building or buildings comprised Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58138 of attached Dwelling Units available for rental by the general public, and under common management, as determined by the Administrator. "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. "Authorized Services" means those services eligible to be funded by CFD No. 2018-01, as defined in the Resolution of Formation and authorized to be financed by CFD No. 2018-01 pursuant to Section 53313 of the Act. CFD No. 2018-01 shall finance Authorized Services only to the extent that they are in addition to those provided in the territory of CFD No. 2018-01 before the CFD was created and such Authorized Services may not supplant services already available within Zone 3 of CFD No. 2018-01 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. For purposes of clarity, a permit forthe construction of a parking garage issued separate from that of a building containing Dwelling Units shall not be considered a Building Permit under this Rate and Method of Apportionment. "Building Square Footage" or "BSF" for Commercial Property means all of the square footage within the perimeter of a non-residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of "Building Square Footage" for a non-residential structure will be based on the Building Permit(s) issued for such structure and/or by reference to appropriate records kept by the City. "CFD Administrator" means an official of CFD No. 2018-01, 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" means 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 of Tustin, acting as the Legislative Body of CFD No. 2018-01, or its designee. "City Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 2018-01 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. Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58138 "Commercial Property" means all Assessor's Parcels of Developed Property for which a building permit was issued for any type of non-residential use, excluding any resident amenities operated or managed by the property owner (or affiliate) or a property owner association. The property owner on an annual basis, shall provide the City with written certification of such excluded amenities. "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 -Long Beach -Anaheim, CA, all urban consumers, not seasonally adjusted" index (Series Id: CUURS49ASAO, CUUSS49ASAO), 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. "County" means the County of Orange. "Developed Property" means, for each Fiscal Year, all Assessor's Parcels of Taxable Property in which a building permit was issued on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied. "Dwelling Unit" means a building, or a unit within 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. "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 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. "Resolution of Formation" means the resolution forming CFD No. 2018-01. Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58B8 "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 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 (i) direct costs for 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. "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries of Zone 3 of CFD No. 2018-01 which are not exempt from the Special Tax pursuant to law or Section E below. "Undeveloped Property" means, for each Fiscal Year, all property not classified as Developed Property, Property Owner Association Property, or City Property. "Zone 3" means Zone 3 of CFD No. 2018-01 as geographically depicted on the boundary map. B. ASSIGNMENT TO LAND USE CLASSES Each Fiscal Year, all Assessor's Parcels within Zone 3 of CFD No. 2018-01 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. C. MAXIM U M SPECIAL TAX RATE 1. Developed Property a. Maximum Special Tax The Maximum Special Tax for Fiscal Year 2024-2025 for Developed Property is shown below in Table 1. Docusign Envelope ID: C63D003B-0A28-44FD-8A30-5F1 FA80A58138 TARI F 1 Maximum Special Taxes for Developed Property for Fiscal Year 2024-2025 Zone 3 of Community Facilities District No. 2018-01 Land Use Fiscal Year 2024-2025 Class Land Use Maximum Special Tax $1,364.28 Per Dwelling Unit 1 Apartment Property (excluding Affordable Units) 2 Commercial Property $2.64 Per Building Sq. Ft. 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 Parcelshall bethesurn ofthe Maximum Special Taxes that can be levied for all Land Use Classes located on that Assessor's Parcel. C. Increase in the Maximum Special Tax On each July 1, commencing on July 1, 2025, the Maximum Special Tax for Developed Property shall be increased annually by the greater of (i) the change in the Consumer Price Index during the twelve (12) months prior to December of the previous Fiscal Year not to exceed three percent (3.00%) and (ii) two percent (2.00%).. The annual incremental adjustment shall be rounded to the nearest one - tenth of a percent. 2. Undeveloped Property No Special Taxes shall be levied on Undeveloped Property. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2025-2026 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 Zone 3 of CFD No. 2018-01. However, should an Assessor's Parcel no longer be classified as City Property or Property Owner Association Property, such Assessor's Parcel may, upon each reclassification, no longer be exempt from Special Taxes. No Special Tax shall be levied on any Dwelling Unit in Apartment Property classified as Affordable Units. However, should a Dwelling Unit no longer qualify as an Affordable Unit, such Dwelling Unit may, upon reclassification, no longer be exempt from Special Taxes. Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5F1 FA80A58B8 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 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 Zone 3 of CFD No. 2018-01, 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 into CFD No. 2018-01 from time to time. 1. 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. Docusign Envelope ID: C63DO03B-OA28-44FD-8A30-5FlFA8OA58B8 EXHIBIT C PROPERTY IN ZONE 3 OF THE CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES) The property in Zone 3 of the City of Tustin Community Facilities District No. 2018-01 (Public Services) is owned, and identified as Orange County Assessor's Parcel Numbers, as shown below: Owner City of Tustin 300 Centennial Way Tustin, CA 92780 Assessor's Parcel Numbers 430-481-02 430-481-03 430-481-04 430-481-05