HomeMy WebLinkAbout13 COMMUNITY FACILITIES DISTRICT 2018-01 ZONE 4
Agenda Item _______
Reviewed:
AGENDA REPORT
City Manager_______
Finance Director_______
MEETING DATE:OCTOBER 20, 2026
TO:ALDO E. SCHINDLER, CITY MANAGER
FROM:BRIAN MONCRIEF, DEPUTY CITY MANAGER – REAL PROPERTY
JENNIFER KING, FINANCE DIRECTOR/CITY TREASURER
SUBJECT:COMMUNITY FACILITIES DISTRICT 2018-01 ZONE 4
SUMMARY:
Request for approval of the implementing documents and resolution related to the
annexation of property subject to a Purchase and Sale Agreement between the City and
Mariners Church into Community Facilities District 2018-01 and designating the property
asZone 4.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1.Acknowledge receipt of the unanimous approval of annexation into Community
Facilities District 2018-01 Zone 4 and related matters executed by the City Manager
on behalf of the City of Tustin as the property owner(the “Unanimous Approval”); ratify
the City Manager’s execution and delivery ofthe Unanimous Approval; and receive
and file the Unanimous Approval; and
2.Adopt Resolution 26-58: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUSTIN, CALIFORNIA, ACTING AS GOVERNING BODY OF THE CITY OF TUSTIN
COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES),
DECLARING ITS 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 4, AND THE NOTICE OF CESSATION OF SPECIAL TAX LIEN FOR
COMMUNITY FACILITIES DISTRICT NO. 13-01
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
City Council AgendaReport
CFD 2018-01 Zone 4
October 20, 2026
Page 2
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.
The Rate and Method of Apportionment for proposed Community Facilities District 2018-
01 Zone 4 was negotiated through the Purchase and Sale Agreement (PSA) between the
City and Mariners Church, executed on September 17, 2025. The maximum annual special
tax in Fiscal Year 2026-2027 is $0.50 per square foot of building area constructed on the
property, which applies to the approved 33,422 square foot building, and will escalate by
2% annually. No special tax will be levied until a building permit has been issued for the
project.
CORRELATION TO THE STRATEGIC PLAN:
The actions associated with the creation of Community Facilities District 2018-01 Zone 4
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 B) 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 II)
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)
City Council AgendaReport
CFD 2018-01 Zone 4
October 20, 2026
Page 3
o Tax A and B
- CFD 2018-01 (Levity at Tustin Legacy, The Landing, Irvine Company Apartments
(Aviano and Terracina), Mariners Church, Clearwater Senior Living, and 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 was formed in 2025 for the 19.4-acre, 1,336
unit Irvine Company Apartments (Aviano and Terracina), and Zone 5 is being formed for
Clearwater Senior Living concurrently with the formation of the proposed Zone 4.
Zone 4 is proposed to be formed for the Mariners Church project, a two-story, 33,422 square
foot religious assembly building on approximately 3.32 acres at the northeast corner of
Warner Avenue and John Johnson Way. The City is selling the property to Mariners Church
under the PSA, which established the special tax rate and requires annexation into Zone 4
as a condition of closing. The rate is also reflected in Development Agreement 2026-0002,
approved by Ordinance No. 1581 on October 6, 2026. The 3.32 acres will be released from
CFD 2013-01 through a notice of cessation of special tax that is included as part of the
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recommended actions.
Close of escrow is anticipated in the first quarter of 2027, with construction anticipated to
begin shortly thereafter. The City will begin to receive Tax B revenue in the fiscal year
following building permit issuance. Zone 4 will exist in perpetuity to continue to offset the
costs of services and maintenance at Tustin Legacy.
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The City Manager executed the Unanimous Approval attached as Exhibit 2 pursuant to the City Council’s
September 16, 2025 authorization for the “…City Manager to take all actions and to approve and execute all
other agreements, attachments and documents necessary or appropriate to complete the \[Purchase and Sale\]
transaction.”
City Council AgendaReport
CFD 2018-01 Zone 4
October 20, 2026
Page 4
Mello-RoosAct 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.
___________________________ ___________________________
Brian Moncrief Jennifer King
Deputy City Manager – Real Property Finance Director/City Treasurer
___________________________
Jason Loya
Senior Management Analyst
Attachments:
1. CFD 2018-01 Boundary Map (Future Annexation Area)
2. Executed Unanimous Approval of Annexation to a Community Facilities District for
Zone 4
3. Notice of Special Tax Lien Cessation for CFD 2013-01
4. Resolution 26-58
5. CFD 2018-01 Zone 4 Map
6. Notice of Special Tax Lien for CFD 2018-01 Zone 4
UNANIMOUS APPROVAL
OF ANNEXATION TO A COMMUNITY FACILITIES DISTRICT
AND RELATED MATTERS
CITY OF TUSTIN
COMMUNITY FACILITIES DISTRICT NO. 2018-01 (PUBLIC SERVICES)
ANNEXATION NO. 4
ZONE 4
OCTOBER 15, 2026
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 Owner. 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 residing on
the Property that are registered to vote.
2. Acknowledgement 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. The
Special Tax to be levied within the Property is specified in a Rate and Method
of Apportionment of Special Tax (the “Rate and Method”)approved in
connection with the annexation of the Property into the CFD. The Rate and
Method for the Property is attached hereto as Exhibit B and made a part
hereof. The boundary 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 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.
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 Servicesis hereby approved.
b. Improvement Area:The designation of the Property as a new improvement
area to be known as “Zone 4 of the City of Tustin Community Facilities
District No. 2018-01 (Public Services)” is hereby approved.
c. Special Tax: The levy of the Special Tax on the Property to finance the Services,
according to the Rate and Methodis hereby approved.
d. Appropriations Limit: An initial annual appropriations limit for the Property of
$4,000,000 for Fiscal Year 2026-27 is hereby approved. The Property Owner
acknowledges and agrees that the appropriations limit will be increased 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 onthe
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
the special tax rate to be levied in such improvement area of the CFD as a result of any future
annexation.”
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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 CommunityFacilities
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 an Amendment to Notice of Special Tax Lien for Zone 4 of the CFD (the “Zone 4 Notice of
Special Tax Lien”) in the form attached hereto as Exhibit E, as required by Section 3117.5 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 4 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 Tax on 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 forany 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.
The Property subject to this Unanimous The full legal name of the Property Owner
Approval and to be annexed to the CFD, is:
consists of the following parcels:
The territory as further described on Exhibit City of Tustin, California
C hereto.
The foregoing Unanimous Approval is hereby executed this 15thday of October 2026,in Tustin,
California.
By: ________________________________
Name: Aldo E. Schindler
Title: City Manager
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EXHIBIT A
DESCRIPTION OF SERVICES TO BE FINANCED BY THE CFD
It is intended that Zone 4 will be eligible to finance any, all or any portion of the services
described in Section 53313 of the Act including but not limited to police protection services; fire
protection services; ambulance and paramedic services; recreation program services;
maintenance of parks, parkways, and open space; flood and storm protection; and street and
sidewalk maintenance (collectively, the “Services”).
EXHIBIT B
RATE AND METHOD OF APPORTIONMENT
ZONE 4 OF THE CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT
NO. 2018-01 (PUBLIC SERVICES)
RATE AND METHOD OF APPORTIONMENT
FOR ZONE 4OFCITY 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 4 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 2027-2028, 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 4 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 CFDNo. 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, CFDNo. 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.
"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 such services are supplemental to those provided within the
territory of Zone 4before its creation and such Authorized Services may not supplant
services already available within Zone 4of 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 garageissued separate from
that ofa buildingcontaining Dwelling Unitsshall not be considered a Building Permit
under this Rate and Method of Apportionment.
"Building Square Footage" or "BSF" for Non-Residential 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.
means an official of CFDNo. 2018-01, or any designee thereof,
"CFD Administrator"
responsible for determining the Special Tax Requirement and providing for the levy and
collection of the Special Taxes.
means City of Tustin Community Facilities District No. 2018-01 (Public
"CFD No. 2018-01"
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.
"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.
"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.
"Non-ResidentialProperty"means all Assessor’s Parcels of Developed Property for which
a building permit was issued for any type of non-residential use.
"Property Owner Association Property" means, for each Fiscal Year, any Assessor's Parcel
within the boundaries of Zone 4 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.
" means the resolution forming CFDNo. 2018-01.
"Resolution of Formation
"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 4
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 4"means Zone 4of 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 4 of CFD No. 2018-01 shall be classified
by the CFDAdministrator 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 CFDAdministrator'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 2026-2027for Developed Property is
shown below in Table 1.
TABLE 1
Maximum Special Taxes for Developed
Property for Fiscal Year 2026-2027
Zone 4 of Community Facilities District No. 2018-01
Land Use Fiscal Year 2026-2027
Class Land Use Maximum Special Tax
1Non-Residential Property $0.50 Per Building Sq. Ft.
b. Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2027, the Maximum Special Tax for
Developed Property shall be increased annually by two percent (2.00%).
2. Undeveloped Property
No Special Taxes shall be levied on Undeveloped Property.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2027-2028 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 4 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.
F. APPEALS AND INTERPRETATIONS
Any landowner or resident may file a written appeal of the Special Tax on his/her property
with the CFDAdministrator, 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 CFDAdministrator
deems necessary, and advise the appellant of its determination. If the CFD Administrator
agrees with the appellant, the CFDAdministrator 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 4of 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.
EXHIBIT C
DESCRIPTION OF PROPERTY
Owner Assessor’s Parcel Numbers
City of Tustin 430-481-13
300 Centennial Way430-481-14
Tustin, CA 92780 430-481-15
EXHIBIT D
BOUNDARY MAP
EXHIBIT E
ZONE 4 NOTICE OF SPECIAL TAX LIEN
RECORDING REQUESTED BY AND
AFTER RECORDATION RETURN TO:
City Clerk
City of Tustin
300 Centennial Way
Tustin, California 92780
AMENDMENT TO NOTICE OF SPECIAL TAX LIEN
CITY OF TUSTIN
COMMUNITY FACILITIES DISTRICT NO. 2018-01
(PUBLIC SERVICES)
ZONE 4
Pursuant to the requirements of Section 3117.5 of the Streets and Highways Code of
California and Section 53339.8 of 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 secured by this lien is authorized
to be levied for the purpose of paying for the Services described in Exhibit A hereto and hereby
made a part hereof.
The special tax is authorized to be levied within Zone 4 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 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 levy of the special tax within
the territory originally included in the CFD is described in the notice of special tax lien recorded
on May 17, 2018, at 1:59 p.m. as Document No. 2018000180578 (the “Original Notice of Special
Tax Lien”). This Amendment to Notice of Special Tax lien applies only to the Property and does
not supersede the Original Notice of Special Tax Lien or any prior amendment thereto.
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 Amendment to 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.
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 4 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 4 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: _______, 2026
Erica N. Yasuda, City Clerk
EXHIBITA
DESCRIPTION OF ELIGIBLE SERVICES
It is intended that Zone 4 will be eligible to finance any, all or any portion of the services described
in Section 53313 of the Act including but not limited to police protection services; fire protection
services; ambulance and paramedic services; recreation program services; maintenance of parks,
parkways, and open space; flood and storm protection; and street and sidewalk maintenance
(collectively, the “Services”).
EXHIBIT B
RATE AND METHOD OF APPORTIONMENT
ZONE 4OF THE CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT
NO. 2018-01 (PUBLIC SERVICES)
RATE AND METHOD OF APPORTIONMENT
FOR ZONE 4OFCITY 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 4 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 2027-2028, 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 4 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 CFDNo. 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, CFDNo. 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.
"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 such services are supplemental to those provided within the
territory of Zone 4before its creation and such Authorized Services may not supplant
services already available within Zone 4of 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 garageissued separate from
that ofa buildingcontaining Dwelling Unitsshall not be considered a Building Permit
under this Rate and Method of Apportionment.
"Building Square Footage" or "BSF" for Non-Residential 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.
means an official of CFDNo. 2018-01, or any designee thereof,
"CFD Administrator"
responsible for determining the Special Tax Requirement and providing for the levy and
collection of the Special Taxes.
means City of Tustin Community Facilities District No. 2018-01 (Public
"CFD No. 2018-01"
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.
"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.
"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.
"Non-ResidentialProperty"means all Assessor’s Parcels of Developed Property for which
a building permit was issued for any type of non-residential use.
"Property Owner Association Property" means, for each Fiscal Year, any Assessor's Parcel
within the boundaries of Zone 4 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.
" means the resolution forming CFDNo. 2018-01.
"Resolution of Formation
"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 4
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 4"means Zone 4of 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 4 of CFD No. 2018-01 shall be classified
by the CFDAdministrator 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 CFDAdministrator'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 2026-2027for Developed Property is
shown below in Table 1.
TABLE 1
Maximum Special Taxes for Developed
Property for Fiscal Year 2026-2027
Zone 4 of Community Facilities District No. 2018-01
Land Use Fiscal Year 2026-2027
Class Land Use Maximum Special Tax
1Non-Residential Property $0.50 Per Building Sq. Ft.
b. Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2027, the Maximum Special Tax for
Developed Property shall be increased annually by two percent (2.00%).
2. Undeveloped Property
No Special Taxes shall be levied on Undeveloped Property.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2027-2028 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 4 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.
F. APPEALS AND INTERPRETATIONS
Any landowner or resident may file a written appeal of the Special Tax on his/her property
with the CFDAdministrator, 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 CFDAdministrator
deems necessary, and advise the appellant of its determination. If the CFD Administrator
agrees with the appellant, the CFDAdministrator 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 4of 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.
EXHIBIT C
PROPERTY IN ZONE 4 OF THE
CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT
NO. 2018-01(PUBLIC SERVICES)
The property in Zone 4 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 Assessor’s Parcel Numbers
City of Tustin430-481-13
300 Centennial Way 430-481-14
Tustin, CA 92780 430-481-15
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. 13-01
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
4Parcels”) 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 Zone 4 Parcel subject to the
lien so cancelled, and the name of the owner of record of each such CFD No. 2018-01 Zone 4
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 4 Parcels established by the Notice of Special Tax Lien for the CFD No. 13-01 Special
Taxes. The CFD No. 2018-01 Zone 4 Parcels are included in the property described in a boundary
map of the CFD recorded on March 13, 2013, at 11:51 a.m. as Document No. 2013-152922 at
Book 97 of Maps of Assessment and Community Facilities Districts at Pages 37 M/M, in the office
of the County Recorder of the County of Orange, State of California.
Dated: XX, 2026
Erica N. Yasuda, City Clerk
EXHIBITA
CFD NO. 2018-01 ZONE 4 PARCELS
Owner Assessor’s Parcel Numbers
City of Tustin 430-481-13
300 CentennialWay430-481-14
Tustin, CA 92780 430-481-15
RESOLUTION NO. 26-58
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUSTIN, CALIFORNIA, ACTING AS GOVERNING BODY OF
THE CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT
NO. 2018-01 (PUBLIC SERVICES), DECLARING ITS
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 4, AND THE
NOTICE OF CESSATION OF SPECIAL TAX LIEN FOR
COMMUNITY FACILITIES DISTRICT NO. 13-01
WHEREAS, on March 7, 2018, the City Council of the City of Tustin (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)" (the “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 may be annexed to the CFD with the unanimous
approval (each, a “Unanimous Approval”) of the owner or owners of such parcel or parcels
at the time that parcel or those parcels are annexed; 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
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; and
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 (specifically, the City of Tustin), 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, the Annexation Property is currently included in City of Tustin
Community Facilities District No. 13-01 (Services) and is subject to the lien of special
taxes levied on property within such community facilities district (the “CFD No. 13-01
Special Taxes”); and
WHEREAS, the City Council hereby finds and determines that by annexing the
Annexation Property into the CFD and levying the Special Tax on the Annexation Property
in accordance with the Rate and Method of Apportionment of Special Tax for the
Annexation Property attached hereto as Exhibit B, the need for the Annexation Property
to pay the CFD No. 13-01 Special Taxes is extinguished and that a Notice of Cessation
of Special Tax shall be recorded with respect to the CFD No. 13-01 Special Taxes; 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 CFDandis hereby
designated as Zone 4 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 the Notice of
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 2026-27, 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.
tin at a regular
PASSED and by the City Council of the City of Tus
th
meeting on the 20 day of October, 2026.
_____________________________
AUSTIN LUMBARD,
Mayor
ATTEST:
____________________
ERICA N. YASUDA,
City Clerk
APPROVED AS TO FORM:
____________________
DAVID E. KENDIG,
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. 26-58 was duly
th
passed and adopted at a regular meeting of the Tustin City Council, held on the 20 of
October, 2026 by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
COUNCILMEMBER RECUSED:
__________________________
ERICA N. YASUDA,
City Clerk
EXHIBIT A
AUTHORIZED SERVICES
It is intended that Zone 4 will be eligible to finance any, all or any portion of the services
described in Section 53313 of the Act including but not limited to police protection
services; fire protection services; ambulance and paramedic services; recreation program
services; maintenance of parks, parkways, and open space; flood and storm protection;
and street and sidewalk maintenance (collectively, the “Services”).
EXHIBIT B
PROPOSED RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
FOR ZONE 4
EXHIBIT C
DESCRIPTION OF PROPERTY
OwnerAssessor's Parcel Number
City of Tustin430-481-13
300 Centennial Way430-481-14
Tustin, CA 92780 430-481-15
EXHIBIT D
NOTICE OF SPECIAL TAX LIEN
(Annexation Property)
EXHIBIT E
ANNEXATION MAP
(Annexation Property)
EXHIBIT F
NOTICE OF CESSATION OF SPECIAL TAX
(Annexation Property)
RECORDING REQUESTED BY AND
AFTER RECORDATION RETURN TO:
City Clerk
City of Tustin
300 Centennial Way
Tustin, California 92780
AMENDMENT TO NOTICE OF SPECIAL TAX LIEN
CITY OF TUSTIN
COMMUNITY FACILITIES DISTRICT NO. 2018-01
(PUBLIC SERVICES)
ZONE 4
Pursuant to the requirements of Section 3117.5 of the Streets and Highways Code of
California and Section 53339.8 of 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 secured by this lien is authorized
to be levied for the purpose of paying for the Services described in Exhibit A hereto and hereby
made a part hereof.
The special tax is authorized to be levied within Zone 4 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 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 levy of the special tax within
the territory originally included in the CFD is described in the notice of special tax lien recorded
on May 17, 2018, at 1:59 p.m. as Document No. 2018000180578 (the “Original Notice of Special
Tax Lien”). This Amendment to Notice of Special Tax lien applies only to the Property and does
not supersede the Original Notice of Special Tax Lien or any prior amendment thereto.
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 Amendment to 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.
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 4 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 4 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: _______, 2026
Erica N. Yasuda, City Clerk
EXHIBITA
DESCRIPTION OF ELIGIBLE SERVICES
It is intended that Zone 4 will be eligible to finance any, all or any portion of the services described
in Section 53313 of the Act including but not limited to police protection services; fire protection
services; ambulance and paramedic services; recreation program services; maintenance of parks,
parkways, and open space; flood and storm protection; and street and sidewalk maintenance
(collectively, the “Services”).
EXHIBIT B
RATE AND METHOD OF APPORTIONMENT
ZONE 4OF THE CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT
NO. 2018-01 (PUBLIC SERVICES)
RATE AND METHOD OF APPORTIONMENT
FOR ZONE 4OFCITY 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 4 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 2027-2028, 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 4 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 CFDNo. 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, CFDNo. 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.
"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 such services are supplemental to those provided within the
territory of Zone 4before its creation and such Authorized Services may not supplant
services already available within Zone 4of 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 garageissued separate from
that ofa buildingcontaining Dwelling Unitsshall not be considered a Building Permit
under this Rate and Method of Apportionment.
"Building Square Footage" or "BSF" for Non-Residential 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.
means an official of CFDNo. 2018-01, or any designee thereof,
"CFD Administrator"
responsible for determining the Special Tax Requirement and providing for the levy and
collection of the Special Taxes.
means City of Tustin Community Facilities District No. 2018-01 (Public
"CFD No. 2018-01"
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.
"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.
"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.
"Non-ResidentialProperty"means all Assessor’s Parcels of Developed Property for which
a building permit was issued for any type of non-residential use.
"Property Owner Association Property" means, for each Fiscal Year, any Assessor's Parcel
within the boundaries of Zone 4 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.
" means the resolution forming CFDNo. 2018-01.
"Resolution of Formation
"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 4
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 4"means Zone 4of 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 4 of CFD No. 2018-01 shall be classified
by the CFDAdministrator 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 CFDAdministrator'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 2026-2027for Developed Property is
shown below in Table 1.
TABLE 1
Maximum Special Taxes for Developed
Property for Fiscal Year 2026-2027
Zone 4 of Community Facilities District No. 2018-01
Land Use Fiscal Year 2026-2027
Class Land Use Maximum Special Tax
1Non-Residential Property $0.50 Per Building Sq. Ft.
b. Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2027, the Maximum Special Tax for
Developed Property shall be increased annually by two percent (2.00%).
2. Undeveloped Property
No Special Taxes shall be levied on Undeveloped Property.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2027-2028 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 4 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.
F. APPEALS AND INTERPRETATIONS
Any landowner or resident may file a written appeal of the Special Tax on his/her property
with the CFDAdministrator, 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 CFDAdministrator
deems necessary, and advise the appellant of its determination. If the CFD Administrator
agrees with the appellant, the CFDAdministrator 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 4of 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.
EXHIBIT C
PROPERTY IN ZONE 4 OF THE
CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT
NO. 2018-01(PUBLIC SERVICES)
The property in Zone 4 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 Assessor’s Parcel Numbers
City of Tustin430-481-13
300 Centennial Way 430-481-14
Tustin, CA 92780 430-481-15