Loading...
HomeMy WebLinkAboutCC RES 25-40Docusign Envelope ID: AE055DBB-5F56-4850-A156-16DE4C41 DA1 E 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 Resolution 25-40 Page 1 of 3 Docusign Envelope ID: AE055DBB-5F56-4850-Al56-16DE4C41 DA1 E 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. Resolution 25-40 Page 2of3 Docusign Envelope ID: AE055DBB-5F56-4850-Al56-16DE4C41 DA1 E PASSED and by the City Council of the City of Tustin at a regular meeting on the 17th day of June, 2025. FSigned by: DU - mt&A& Mayor Pro Tern ATTEST: DS Signed by: (& go'sax - ERIUM414VA190DA, City Clerk APPROVED AS TO FORM: FDocuSigned by: I�" DA - 1 IffllbIG, City Attorney STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF TUSTIN I, 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: COUNCILMEMBER RECUSED: Signed by: DS (%V'iCa aStti�,a ERI °WYAnDA, City Clerk Resolution 25-40 Page 3 of 3 Nielsen, Gallagher, Schnell, Fink (4) (0) (0) Lumbard (1) Docusign Envelope ID: AE055DBB-5F56-4850-Al56-16DE4C41 DA1 E 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: AE055DBB-5F56-4850-Al56-16DE4C41 DA1 E EXHIBIT B PROPOSED RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR ZONE 3 Docusign Envelope ID: AE055DBB-5F56-4850-Al56-16DE4C41 DA1 E :�_rhL1010]►Ti149:[•u lS_10Ll:491910MiL4 LINI 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: AE055DBB-5F56-4850-Al56-16DE4C41 DA1 E 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 for the 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: AE055DBB-5F56-4850-Al56-16DE4C41 DA1 E "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: CUURS49ASA0, CUUSS49ASA0), 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: AE055DBB-5F56-4850-Al56-16DE4C41 DA1 E "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. MAXIMUM 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: AE055DBB-5F56-4850-Al56-16DE4C41 DA1 E 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 Parcel shall be the sum of the Maximum Special Taxes that can be levied for all Land Use Classes located on that Assessor's Parcel. 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: AE055DBB-5F56-4850-Al56-16DE4C41 DA1 E 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. I. TERM OF SPECIAL TAX The Special Tax shall be levied in perpetuity as necessary to meet the Special Tax Requirement, unless no longer required to pay for Authorized Services as determined at the discretion of the City. Docusign Envelope ID: AE055DBB-5F56-4850-A156-16DE4C41 DA1 E 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: AE055DBB-5F56-4850-Al56-16DE4C41 DA1 E EXHIBIT D NOTICE OF SPECIAL TAX LIEN (Annexation Property) Docusign Envelope ID: AE055DBB-5F56-4850-A156-16DE4C41 DA1 E 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 1 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: AE055DBB-5F56-4850-A156-16DE4C41 DA1 E The rate, method of apportionment, and manner of collection of the authorized special tax is as set forth in Exhibit B attached hereto and hereby made a part hereof. The special tax may not be prepaid. Notice is further given that upon the recording of this notice in the office of the County Recorder of the County of Orange, the obligation to pay the special tax levy shall become a lien upon all nonexempt real property within 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: AE055DBB-5F56-4850-A156-16DE4C41 DA1 E 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: AE055DBB-5F56-4850-A156-16DE4C41 DA1 E 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: AE055DBB-5F56-4850-Al56-16DE4C41 DA1 E :�_rhL1010]►Ti149:[•u lS_10Ll:491910MiL4 LINI 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: AE055DBB-5F56-4850-Al56-16DE4C41 DA1 E 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 for the 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: AE055DBB-5F56-4850-Al56-16DE4C41 DA1 E "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: CUURS49ASA0, CUUSS49ASA0), 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: AE055DBB-5F56-4850-Al56-16DE4C41 DA1 E "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. MAXIMUM 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: AE055DBB-5F56-4850-Al56-16DE4C41 DA1 E 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 Parcel shall be the sum of the Maximum Special Taxes that can be levied for all Land Use Classes located on that Assessor's Parcel. 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: AE055DBB-5F56-4850-Al56-16DE4C41 DA1 E 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. I. TERM OF SPECIAL TAX The Special Tax shall be levied in perpetuity as necessary to meet the Special Tax Requirement, unless no longer required to pay for Authorized Services as determined at the discretion of the City. Docusign Envelope ID: AE055DBB-5F56-4850-A156-16DE4C41 DA1 E 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: AE055DBB-5F56-4850-Al56-16DE4C41 DA1 E EXHIBIT E BOUNDARY MAP (Annexation Property) Docusign Envelope ID: AE055DBB-5F56-4850-A156-16DE4C41 DA1 E 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 , 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 Webb FACILITIES DISTRICT. FOR DETAILS CONCERNING THE LINES AND MUNICIPAL FINANCE DIMENSIONS OF LOTS OR PARCELS REFER TO THE ORANGE COUNTY ASSESSOR'S MAPS FOR FISCAL YEAR 2024-2025. (PUBLIC SERVICES) CITY OF TUSTIN, COUNTY OF ORANGE, STATE OF CALIFORNIA �ti 430-481-02 q�� 130-481-03 R� 000,0 000 400 ��S��N�PNGH i N* =wfflwA..w SHEET 1 OF 1 FILED THIS DAY OF 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 PARCEL BOUNDARY N W E S W.O. M20228064 Docusign Envelope ID: AE055DBB-5F56-4850-Al56-16DE4C41 DA1 E EXHIBIT F NOTICE OF CESSATION OF SPECIAL TAX (Annexation Property) Docusign Envelope ID: AE055DBB-5F56-4850-A156-16DE4C41 DA1 E 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 Apportionment 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: AE055DBB-5F56-4850-Al56-16DE4C41 DA1 E 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