HomeMy WebLinkAboutORD 1339 (2007)ORDINANCE NO. 1339
AN ORDINANCE OF THE CITY OF TUSTIN LEVYING
SPECIAL TAXES WITHIN CITY OF TUSTIN COMMUNITY
FACILITIES DISTRICT NO. 07-1 (TUSTIN LEGACY/RETAIL
CENTER)
WHEREAS, on May 1, 2007, the City Council (the "City Council") of the City of
Tustin, pursuant to the Mello-Roos Community Facilities Act of 1982 (the "Act"),
adopted a resolution entitled "A Resolution of the City Council of the City of Tustin of
Intention to Establish a Community Facilities District and to Authorize the Levy of
Special Taxes" stating its intention to establish City of Tustin Community Facilities
District No. 07-1 (Tustin Legacy/Retail Center) (the "Community Facilities District") and
to finance certain public facilities (the "Facilities") and services (the "Services") and
setting the date for a public hearing to be held on the establishment of the Community
Facilities District;
WHEREAS, on June 5, 2007, the City Council opened a noticed public hearing
on the establishment of the Community Facilities District, as required by the Act and
continued said public hearing to June 19, 2007;
WHEREAS, on June 19, 2007, the City Council opened said public hearing on
the establishment of the Community Facilities District, as required by the Act;
WHEREAS, subsequent to the close of said hearing, on June 19, 2007, the City
Council adopted resolutions entitled "A Resolution of the City Council of the City of
Tustin of Formation of City of Tustin Community Facilities District No. 07-1 (Tustin
Legacy/Retail Center), Authorizing the Levy of a Special Tax within the District and
Establishing an Appropriations Limit for the District" (the "Resolution of Formation"), "A
Resolution of the City Council of the City of Tustin Deeming it Necessary to Incur
Bonded Indebtedness within City of Tustin Community Facilities District No. 07-1 (Tustin
Legacy/Retail Center)" and "A Resolution of the City Council of the City of Tustin Calling
Special Election for City of Tustin Community Facilities District No. 07-1 (Tustin
Legacy/Retail Center)," which resolutions established the Community Facilities District,
authorized the levy of a special tax within the Community Facilities District and called an
election within the Community Facilities District on the proposition of incurring
indebtedness, levying a special tax within the Community Facilities District and
establishing an appropriations limit for the Community Facilities District, respectively;
and
WHEREAS, on June 19, 2007, an election was held in which the qualified
electors of the Community Facilities District approved said proposition by more than the
two-thirds vote required by the Act;
THE CITY COUNCIL OF THE CITY OF TUSTIN DOES ORDAIN AS FOLLOWS:
Ordinance No. 1339
Page 1 of 37
Section 1. The City Council hereby authorizes and levies special taxes within the
Community Facilities District pursuant to Sections 53328 and 53340 of the Act, at the
rate and in accordance with the method of apportionment set forth in Exhibit A to the
Resolution of Formation (the "Rate and Method of Apportionment"). The special taxes
are hereby levied commencing in fiscal year 2007-08 and in each fiscal year thereafter
until the last fiscal year in which such special taxes are authorized to be levied pursuant
to the Rate and Method of Apportionment.
Section 2. The City Council may, in accordance with subdivision (b) of Section
53340 of the Act, provide, by resolution, for the levy of the special tax in future tax years
at the same rate or at a lower rate than the rate provided by this Ordinance. In no event
shall the special tax be levied on any parcel within the Community Facilities District in
excess of the maximum tax specified therefor in the Rate and Method of Apportionment.
Section 3. The special tax shall be levied on all of the parcels in the Community
Facilities District, unless exempted by law or by the Rate and Method of Apportionment.
Section 4. The proceeds of the special tax shall only be used to pay, in whole or
in part, the cost of providing the Facilities and Services and incidental expenses
pursuant to the Act.
Section 5. The special tax shall be collected in the same manner as ordinary ad
valorem property taxes are collected and shall be subject to the same penalties and the
same procedure, sale and lien priority in the case of delinquency as is provided for ad
valorem taxes, unless another procedure is adopted by the City Council.
Section 6. If for any reason any portion of this Ordinance is found to be invalid, or
if the special tax is found inapplicable to any particular parcel within the Community
Facilities District, by a court of competent jurisdiction, the balance of this Ordinance and
the application of the special tax to the remaining parcels within the Community
Facilities District shall not be affected.
Section 7. This Ordinance shall take effect and shall be in force 30 days after the
date of its adoption and prior to the expiration of 15 days from the passage thereof shall
be published at least once in the Tustin News, a newspaper of general circulation,
printed and published in the City of Tustin, State of California, together with the names
of the City Council members voting for and against the same.
PASSED AND ADOPTED, at a regular meeting of the City Council for the City of
Tustin on this 3rd day of July, 2007.
LOU BONE
Mayor
Ordinance No. 1339
Page 2 of 37
PAMELA STOKER
City Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF TUSTIN )
I, PAMELA STOKER, City Clerk and ex-officio Clerk of the City Council of the City of
Tustin, California, 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 Interim Ordinance was
passed and adopted at a regular meeting of the City Council held on the 3~d day of July,
2007, by the following vote::
COUNCILMEMBER AYES: Bone, Amante, Davert, Kawashima, Palmer (5)
COUNCILMEMBER NOES: None (0)
COUNCILMEMBER ABSTAINED: None (0)
COUNCILMEMBER ABSENT: None (0)
PAMELA STOKER,
City Clerk
Ordinance No. 1339
Page 3 of 37
CITY OF TUSTIN
COMMUNITY FACILITIES DISTRICT
No. 07-1
(TUSTIN LEGACY/RETAIL CENTER)
June 7, 2007
Ordinance No. 1339
Page 4 of 37
COMMUNITY FACILITIES DISTRICT REPORT
MELLO-BOOS COMMUNITY FACILITIES ACT OF 1982
CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO.07-1
(TUSTIN LEGACY/RETAIL CENTER
Prepared for
CITY OF TUSTIN
300 Centennial Way
Tustin, CA 92780
Pre ared b
DAVID TAUSSIG & ASSOCIATES, INC.
1301 Dove Street, Suite 600
Newport Beach, CA 92660
(949) 955-1500
Ordinance No. 1339
Page 5 of 37
TABLE OF CONTENTS
Section Page
I. INTRODUCTION ..............................................................................................................1
II. PROJECT DESCRIPTION ............................................................................................. .2
III. DESCRIPTION AND ESTIMATED COST OF PROPOSED SERVICES .................3
A. Description of Proposed Services ..................................................................................3
B. Estimated Cost of Proposed Public Services .................................................................4
IV. BONDED INDEBTEDNESS AND INCIDENTAL EXPENSES .................................. .5
A. Projected Bond Sales .................................................................................................... .5
B. Incidental Expenses to be Included in the Annual Levy of Special Taxes ....................5
V. RATE AND METHOD OF APPORTIONMENT OF THE SPECIAL TAX ..............6
A. Explanation fior Special Tax Apportionment .................................................................6
B. Maximum Special Tax A ...............................................................................................7
C. Maximum Special Tax B ............................................................................................. ..7
D. Accuracy of Information .............................................................................................. ..8
VI. BOUNDARIES OF COMMUNITY FACILITIES DISTRICT ................................... ..9
VII. GENERAL TERMS AND CONDITIONS .................................................................... 10
A. Substitution of Facilities and Services ......................................................................... 10
B. Appeals ........................................................................................................................ 10
EXHIBITS
Exhibit A Rate and Method of Apportionment
Exhibit B Maximum Special Tax A For Developed Property
Exhibit C Maximum Special Tax B For Developed Property
Exhibit D Recorded Boundary Map
Ordinance No. 1339
Page 6 of 37
I. INTRODUCTION
WHEREAS, the City Council of the City of Tustin {hereinafter referred to as the "Council") did,
pursuant to the provision of the "Mello-Roos Community Facilities Act of 1982," being Chapter 2.5,
Part 1, Division 2, Title 5 of the Government Code of the State of California (hereinafter referred to
as the Act ), and specifically Section 53321.5 thereof, expressly order the filing of a written
"Report" with the legislative body of the proposed community facilities district. This community
facilities district being City of Tustin Community Facilities District No. 07-1 (Tustin Legacy/Retail
Center) shall hereinafter be referred to as:
"CFD No. 07-1"; and,
WHEREAS, a Resolution of the City Council of the City of Tustin of Intention to Establish a
Community Facilities District and to Authorize the Levy of Special Taxes (hereinafter referred to as
the "Resolution of Intention") did direct that said Report generally contain the following:
1. A brief description of the public facilities and services by type which will be required to
adequately meet the needs of CFD No. 07-1; and
2. An estimate of the cost of providing the public facilities and services, and an estimate of the
fair and reasonable cost of the public facilities proposed to be purchased as completed
facilities and of the incidental expenses proposed to be paid.
WHEREAS, the Finance Director of the City of Tustin has caused the Report to be prepared by
David Taussig & Associates, Inc. pursuant to the provisions of the Resolution of Intention.
NOW, THEREFORE, David Taussig & Associates, Inc. does hereby submit the Report.
City of Tustin CFD No. 07-1 June 7,1007
(Tustin Legacy/Retail Center) Page 1
Ordinance No. 1339
Page 7 of 37
II. PROJECT DESCRIPTION
CFD No. 07- l encompasses approximately 82.57 gross acres of land in the City of Tustin. All of the
property is subject to a Mello-Roos special tax levy. However, as stated in the Rate and Method of
Apportionment (attached as Exhibit A), Privately Owned Specific Retail Property, are not subject to
Special Tax A. All Developed parcels within CFD No. 07-1 are subject to Special Tax B. At
buildout, it is currently expected that the property within the boundaries of CFD No. 07-1 will
contain approximately 990,778 square feet of commercial retail.
City of Tustin CFD No. 07-1 June 7, 2007
(Tustin Le acy/Retail Center) page 2
Ordinance No. 1339
Page 8 of 37
III. DESCRIPTION AND ESTIMATED COST OF PROPOSED
FACILITIES AND SERVICES
A community facilities district may provide for the purchase, construction, expansion or
rehabilitation of any real or tangible property, including public facilities and infrastructure
improvements, with an estimated useful life of five (5) years or longer, which is necessary to meet
increased demands placed upon local agencies as a result of development or rehabilitation occurring
within the community facilities district. In addition, a community facilities district may pay in full
all amounts necessary to eliminate any fixed special assessment liens or to pay, repay, or defease any
obligation to pay for any indebtedness secured by any tax, fee, charge, or assessment levied within
the area of the community facilities district. A community facilities district may also provide for
financing of certain public services to meet these demands.
A. Description of Proposed Facilities and Services
Facilities
The types of facilities proposed to be financed by CFD No. 07-1 are street improvements,
including grading, paving, curbs and gutters, sidewalks, street signalization and signage,
street lights and parkway and landscaping related thereto, storm drains, utilities, public parks
and recreation facilities, public library facilities, fire protection facilities and equipment and
land, rights-of-way and easements necessary for any of such facilities.
Services
The types of services proposed to be financed by CFD No. 07-1 are police protection
services, fire protection services, ambulance and paramedic services, recreation program
services, maintenance of parks, parkways and open space and flood and storm protection
services.
The preceding facilities and services are all facilities and services which the legislative body
creating CFD No. 07-1. is authorized to own, construct, or finance, and which are required to
adequately meet the needs of CFD No. 07-1. Because the actual facilities and services
necessary to serve development within CFD No. 07-1 may differ from those currently
anticipated, CFD No. 07-1 reserves the right to modify the actual facilities and services
proposed herein to the extent CFD No. 07-1 deems necessary, in its sole discretion to meet
those needs. The Special Taxes required to pay for the construction, acquisition, or
financing of said facilities, or for the provision of services, will be apportioned as described
in the Rate and Method of Apportionment for CFD No. 07-1.
1Please note that all capitalized terms used herein, unless otherwise indicated, shall have the meanings defined in the
Rate and Method of Apportionment.
City oJTustin CFD No. 07-1 June 7, 2007
(Tustin Legacy/Retail Center) Page 3
Ordinance No. 1339
Page 9 of 37
B. Estimated Cost of Prouosed Facilities and Services
CFD No. 07-1 is expected to issue one (1) Bond series to finance the purchase, construction,
expansion, improvement, or rehabilitation of the proposed facilities. The total amount of
construction proceeds to be generated from the Bonds is projected to be approximately
$13,184,590. This amount is an estimate and is subject to change, depending on the interest
rates of the Bonds, the costs of issuance of the Bonds, and other factors to be determined at
the time the Bonds are issued.
In addition, CFD No. 07-1 is expected to finance the annual costs to provide police
protection services, fire protection services, ambulance and paramedic services, recreation
program services, maintenance of parks, parkways and open space and flood and storm
protection services. The Fiscal Year 2007-2008 services costs are estimated to total
approximately $60,000 and are anticipated to increase thereafter. However, the Special Tax
B levied to pay for services will not exceed the Maximum Special Tax B identified in the
Rate and Method of Apportionment.
City of Tustin CFD No. 07-1 June 7, 2007
(Tustin Legacy/Retai! Center) Page 4
Ordinance No. 1339
Page 10 of 37
IV. BONDED INDEBTEDNESS AND INCIDENTIAL EXPENSES
A. Protected Bond Sales
The maximum authorized bonded indebtedness for CFD No. 07-1 is $16,000,000. It is
anticipated that CFD No. 07-1 will sell one bond issue with a term of 30 years in July of
2007.
B. Incidental Bond Issuance Expenses to be Included in the Proposed Bonded
Indebtedness
Pursuant to Section 53345.3 of the Act, bonded indebtedness may include all costs and
estimated costs incidental to, or connected with, the accomplishment of the purpose for
which the proposed debt is to be incurred, including, but not limited to, the estimated cots of
construction or acquisition of buildings, or both; acquisition of land, rights-of--way, water,
sewer, or other capacity or connection fees; satisfaction of contractual obligations relating to
.expenses or the advancement of funds for expenses existing at the time the bonds are issued,
architectural, engineering, inspection, legal, fiscal, and financial consultant fees; bond and
other reserve funds; discount fees; interest on any bonds of the district estimated to be due
and payable within two years of issuance of the bonds; election costs; and all costs of
issuance of the bonds, including, but not limited to, fees for bond counsel, costs of obtaining
credit ratings, bond insurance premiums, fees for letters of credit, and other credit
enhancement costs, and printing costs. For the bonds proposed to be issued by CFD No. 07-
l,the reserve fund is estimated at approximately 9.00 percent of the principal amount of the .
bonds, and capitalized interest is estimated at approximately 0.80 percent of the principal
amount of the bonds. Incidental bond issuance expenses of 5.00 percent are estimated for
the bonds.
C. Incidental Expenses to be Included in the Annual Levy of Special Taxes
Pursuant to Section 53340 of the Act, the proceeds of any special tax may only be used to
pay, in whole or part, the cost ofproviding public facilities, services and incidental expenses.
As defined by the Act, incidental expenses include, but are not limited to, the cost of
planning and designing public facilities to be financed, including the cost of environmental
evaluations of those facilities; the costs associated with the creation of the district, issuance
of bonds, determination of the amount of taxes, collection of taxes, payment of taxes, or
costs otherwise incurred in order to carry out the authorized purposes of the district; any
other expenses incidental to the construction, completion, and inspection of the authorized
work; and the costs associated with the retirement of existing bonded indebtedness. While
the actual cost of administering CFD No. 07-1 may vary, it is anticipated that the amount of
special taxes which can be collected will be sufficient to fund at least $30,000 in annual
administrative expenses.
City of Tustin CFD No. 07 Y June 7, 1007
{Tustin Legacy/Retail Center) Page S
Ordinance No. 1339
Page 11 of 37
V. RATE AND METHOD OF APPORTIONMENT
All of the property located within CFD No. 07-1, unless exempted by law or by the Rate and Method
of Apportionment, shall be taxed for the purpose of providing necessary facilities and services to
serve CFD No. 07-1. Pursuant to Section 53325.3 of the Act, the tax imposed "is a special tax and
not a special assessment, and there is no requirement that the tax be apportioned on the basis of
benefit to any property." The special tax "may be based on benefit received by parcels of real
property, the cost of making facilities or services available to each parcel or other reasonable basis
as determined by the legislative body," although the special tax may not be apportioned on an ad
valorem basis pursuant to Article XIIIA of the California Constitution.
As shown in Exhibit A, the adopted Rate and Method of Apportionment provides information
sufficient to allow each property owner within CFD No. 07-1 to estimate the maximum annual
Special Tax he or she will be required to pay. Sections A through D below, provide additional
information on the Rate and Method of Apportionment for CFD No. 07- I .
A. Explanation for Special Tax Apportionment
When a community facilities district is formed, a special tax may be levied on each parcel of
taxable property within the CFD to pay for the construction, acquisition and rehabilitation of
public facilities, to pay for authorized services or to repay bonded indebtedness or other
related expenses incurred by CFD No. 07-1. This special tax must be apportioned in a
reasonable manner; however, the tax may not be apportioned on an ad valorem basis.
When more than one type of land use is present within a community facilities district,
several criteria maybe considered when apportioning a special tax. Generally, criteria based
on building square footage, lot size, density and/or land use are selected, and categories
based on such criteria are established to differentiate between parcels of property. These
categories are a direct result of the developer's projected product mix, and are reflective of
the proposed land use types within that community facilities district. Additionally,
geographic location of property may be considered and different tax rate zones or areas
defined. Specific special tax levels are assigned to each land use category within each tax
rate zone, with all parcels within a land use category for each tax rate zone, assigned the
same special tax rate.
The Act does not require that special taxes be apportioned to individual parcels based on
benefit received. However, in order to insure fairness and equity, benefit principles have
been incorporated in establishing the Special Tax rates for CFD No. 07-1.
The major assumption inherent in the Special Tax rates set forth in the Rate and Method of
Apportionment is that the level of benefit received from the proposed public facilities and
services is a function of land use and/or size of building.
City of Tustin CFD No. 07-1 Junc 7, 2007
(Tustin Legaey/Retail Center) Page 6
Ordinance o.
Page 12 of 37
For example, in measuring average weekday vehicletrip-ends, the Institute of Transportation
Engineer's. Tri eneration manual identifies land use as the primary determinant oftrip-end
magnitude. Within the retail category, this manual utilizes building square footage as a
determinant of trip-end magnitude. Specifically, larger retail establishments typically
generate a greater number of trip-ends than do smaller establishments, and therefore, will
tend to receive more benefit from road grading, road landscaping and road improvements.
Drainage and flood control requirements generally vary with the amount of impervious
ground cover per parcel. It follows that larger lots have more impervious ground cover
which will create more drainage flows than that of smaller lots.
In addition, larger buildings typically generate a greater number of "person hours," or the
number of hours per week that patrons could potentially require the need for the proposed
public services.
Therefore, separate Special Tax rates have been established for each parcel within CFD No.
07-1, based on the anticipated Floor Area of building square footage. -
Based on the types of public facilities and services that are proposed for CFD No. 07-1 and
the factors described above, the Special Taxes assigned to Developed Properties are
generally proportionate to the relative benefits received by them, and, accordingly, the
Special Taxes in CFD No. 07-1 can be considered fair and reasonable.
B. Maximum Special Tax A
Exhibit B lists the Fiscal Year 2007-2008 Maximum Special Tax A that may be levied
against Developed Property within CFD No. 07-1 to fund the Special Tax Requirement for
Facilities. In addition, the Fiscal Year 2007-2008 Maximum Special Tax A for Undeveloped
Property, Taxable Public Property, and Taxable Property Owner Association Property shall
be $26,051 per Acre. On each July 1, commencing on July 1, 2008, the Maximum Special
Tax A shall be increased by an amount equal to two percent (2%) of the amount in effect for
the previous Fiscal Year.
C. Maximum Special Tax B
Exhibit C lists the Fiscal Year 2007-2008 Maximum Special Tax B that may be levied
against Developed Property within CFD No. 07-1 to fund the Special Tax Requirement for
Services. The Fiscal Year 2007-2008 Maximum Special Tax B shall be $0.06 per square foot
of Floor Area. The Fiscal Year 2008-2009 Maximum Special Tax B for Developed Property
shall be $0.12 per square foot of Floor Area. The Fiscal Year 2009-2010 Maximum Special
Tax B for Developed Property shall be $0.18 per square foot of Floor Area. The Fiscal Year
2010-2011 Maximum Special Tax B for Developed Property shall be $0.25 per square foot
of Floor Area. On each July 1, commencing July 1, 2011, after the Maximum Special Tax B
has been increased to $0.25 per square foot of Floor Area, the Maximum Special Tax B shall
be increased by an amount equal to two percent (2%} of the amount in effect for the previous
Fiscal Year.
City of Tustin CFD No. 071 June 7, 2007
(Tustin Legacy/Retail Center) page 7
Ordinance No. 1339
Page 13 of 37
D. Accuracy of Information
In order to establish the Special Taxes for CFD No. 07-1 asset forth in the Rate and Method
of Apportionment, David Taussig and Associates, Inc. has relied on information including,
but not limited to absorption, land-use types, building square footage, and net taxable
acreage which were provided to David Taussig and Associates, Inc., by others. David
Taussig and Associates, Inc. has not independently verified such data and disclaims
responsibility for the impact of inaccurate data provided by others, if any, on the Rate and
Method of Apportionment for CFD No. 07-1, including the inability to meet the financial
obligations of CFD No. 07-1.
City of Tustin CFD No. 07-1 June 7, 2007
(Tustin Legacy/Retail Center) pa8e 8
Ordinance No. 1339
Page 14 of 37
VI. BOUNDARIES OF COMMUNITY FACILITIES DISTRICT
The boundaries of CFD No. 07-1 include all land on which the Special Taxes may be levied. A
reduced scale map showing the boundaries of CFI No. 07-1 is provided as Exhibit D. A full scale
map is on file with the City Clerk of the City of Tustin and was recorded with the County Recorder
of the County of Orange in Book 92 of Maps of Assessment and Community Facilities Districts at
pages 26 through 27 and as Instrument Number 20070003021b2.
City of Tustin CFD No. 07-1 /une ~, luvi
(Tustin Le acy/Retail Center) Page 9
Ordinance No. 1339
Page 15 of 37
VII. GENERAL TERMS AND CQND~TIONS
A. Substitution of Facilities and Services
The descriptions of the facilities and services, asset forth herein, are general in their nature.
The City of Tustin will determine the final nature and location of services. The City of
Tustin may modify the facilities and services provided and any such substitution shall not be
a change or modification in the proceedings as long as the services provide a function
substantially similar to that as set forth in this Report.
B. Appeals
Pursuant to the Rate and Method of Apportionment, any landowner who feels that the
amount of the Special Tax levied on such landowner's Assessor's Parcel is in error may
submit a written appeal to CFD No. 07-1. As appropriate, a representative of the City of
Tustin shall review the appeal and if the representative of the City of Tustin concurs, the
amount of the Special Tax levied shall be appropriately modified.
The City Council may interpret the Rate and Method of Apportionment for CFD No. 07-1
for purposes of clarifying any ambiguity and make determinations relative to the amount of
Administrative Expenses and any landowner or resident appeals. Any decision of the City
Council shall be final and binding as to all persons.
C. Prepayment of Special Tax
The Special Tax A applicable to an Assessor's Parcel in CFD No. 07-1 may be prepaid
according to the prepayment provisions in the Rate and Method of Apportionment. The
Special~Tax B may not be prepaid.
K:\CLIENTS2\Tustin.Cit\TustinMCAS\Vestar\CFD Report\CFDReport_vl.doc
City ojTustin CFD No. 07-1 June 7, 2007
(Tustin Legaey/Retail Center) Pale 10
Ordinance No. 1339
Page 16 of 37
EXHIBIT A
CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT N0.07-1
(TUSTIN LEGACY/RETAIL CENTER)
RATE AND METHOD OF APPORTIONMENT
Ordinance No. 1339
Page 17 of 37
RATE AND IYIETHOD OF APPORTIONMENT FOR
CITY OF TUSTIN
COMMUNITY FACILITIES DISTRICT No. 07-01
('TUSTIN LEGACY/ RETAIL CENTER)
A Special Tax shall be levied and collected on all Assessor's Parcels located within the boundaries
of City of Tustin Community Facilities District No. 07-01 (Tustin Legacy /Retail Center) ("CFD
No. 07-01 "). The amount of Special Tax to be levied in each Fiscal Year on an Assessor's Parcel in
CFD No. 07-01, commencing in Fiscal Year 2007-2008, shall be determined through the application
of this Rate and Method of Apportionment as described below. All of the real property in CFD No.
07-01, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the
extent and in the manner herein provided.
A. DEFINITIONS
In addition to the capitalized terms set forth in the preceding paragraph, capitalized terms
used in this Section A shall have the following meanings:
"Acre" or "Acreage" means the land area of an Assessor's Parcel as shown on an
Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the
land area shown on the applicable final map, parcel map, condominium plan, or other
recorded County parcel map. The square footage of an Assessor's Parcel is equal to the
Acreage of such parcel multiplied by 43,560.
"Act" means the Mello-Roos Community Facilities Act of 1982, 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 actual or reasonably estimated costs directly related
to the administration of CFD No. 07-01, including but not limited to the following: (i} the
costs of computing the Special Taxes and of preparing the annual Special Tax collection
schedules (whether by the CFD Administrator or designee thereof, or both); (ii) the costs of
collecting the Special Taxes (whether by the City, County, or otherwise); (iii) the costs of
remitting the Special Taxes to the fiscal agent or Trustee for any Bonds; (iv) the costs of
commencing and pursuing to completion any foreclosure action arising from delinquent
Special Taxes; (v) the costs of the fiscal agent or Trustee (including its legal counsel) in the
discharge of the duties required of it under any Indenture; (vi) the costs of the City, or its
designee of complying with arbitrage rebate and disclosure requirements of applicable
federal and State of California securities laws, the Act, and the California Government Code,
including property owner or Bond owner inquiries regarding the Special Taxes; (vii) the
costs associated with the release of funds from any escrow account; (viii) the costs of the
City, or its designee related to any appeal of a Special Tax; and (ix) an allocable share of the
salaries of the City staff and City overhead expense directly relating to the foregoing.
Administrative Expenses shall also include amounts advanced by the City or the City for any
administrative purposes of CFD No. 07-O1.
"Assessor's Parcel" or "AP" means a lot or parcel shown on an Assessor's Parcel Map with
an assigned Assessor's parcel number.
City of Tustin April 26, 2007 `
Community Facilities District No. 07-01 (Tustin Legacy/Retail Center) Page 1
Ordinance No. 1339
Page 18 of 37
"Assessor's Parcel Map" means an official map of the County Assessor designating parcels
by Assessor's Parcel number.
"Authorized Facilities" means those authorized facilities proposed to be financed by CFD
No. 07-01 pursuant to the Act and listed in Exhibit A to this Rate and Method of
Apportionment.
"Authorized Services" means those authorized services proposed to be financed by CFD
No. 07-01 pursuant to the Act and listed in Exhibit A to this Rate and Method of
Apportionment.
"Bonds" means any bonds or other debt (as defined in Section 53317(d) of the Act),
whether in one or more series, issued by CFD No. 07-01 under the Act.
"CFD Administrator" means an official of the City, or designee thereof, responsible for
determining the Special Tax Requirement for Facilities and the Special Tax Requirement for
Services and providing for the levy and collection of the Special Taxes.
"CFD No. 07-01" means City of Tustin Community Facilities District No.2007-01 (Tustin
Legacy/ Retail Center).
"City" means the City of Tustin, California.
"Council" means the City Council of the City, acting as the legislative body of CFD No.
07-01.
"County" means the County of Orange, California.
"Developed Property" means for a Fiscal Year, all Taxable Property (i) which was within a
Final Map that was recorded prior to January 1 of the previous Fiscal Year, and (ii) for
which a building permit for new construction, other than the construction of a garage,
parking lot, parking structure or street, was issued after January 1, 2005, but prior to January
1 of the previous Fiscal Year.
"Exempt Property" means any Lot located within the boundaries of CFD No. 07-01 which
is exempt from the Special Tax pursuant to law or Section G below.
"Final Map" means a final map, lot line adjustment, or parcel map, or portion thereof,
approved by the City pursuant to the Subdivision Map Act (California Government Code
Section 66410 et seq.} and recorded with the County Recorder that creates individual Lots
for which building permits may be issued. The term "Final Map" shall not include any
Assessor's Parcel Map or subdivision map or portion thereof that does not create individual
Lots for which a building permit may be issued.
"Fiscal Year" means the twelve month period starting on July 1 of any calendar year and
ending the following June 30.
City of Tustin April 16, 2007
Community Facilities District No. 07-01 (Tustin Legacy/Retail.Center) Page l
Ordinance No. 1339
Page 19 of 37
"Floor Area" or "FA" for Residential or A1on-residential Property means the total of the
gross area of the floor surfaces within the exterior wall of the building, not including space
devoted to stairwells, basement storage, required corridors, public restrooms, elevator shafts,
light courts, vehicle parking and areas incident thereto, mechanical equipment incidental to
the operation of such building, and covered public pedestrian circulation areas, including
atriums, lobbies, plazas, patios, decks, arcades and similar areas, except such public
circulation areas or portions thereof that are used solely for commercial purposes. The
determination of Floor Area shall be made by reference to appropriate records kept by the
Department of City Planning or Department of Building and Safety. Notwithstanding the
above, for purposes of determining the square footages of Floor Area for the Original Parcels
in order to determine the allocation of Special Tax A to Successor Parcels, the square
footages listed in Table 3 shall apply.
"Future Public Property" means Taxable Property at the time offormation of CFD No. 07-
01 that becomes Public Property at some point thereafter.
"Indenture" means the indenture, fiscal agent agreement, resolution or other instrument
pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to
time.
"Land Use" means the classification of Taxable Properly, as identified in Section B below.
"Lot" means a lot created by a Final Map for which building permits may or have already
been issued for either residential ornon-residential structures.
"Maximum Special Tax" means the Maximum Special Tax Aand/ or Maximum Special
Tax B, as applicable.
"Maximum Special Tax A" means the Maximum Special Tax A, determined in accordance
with Section C, that can be levied in any Fiscal Year on any Assessor's Parcel.
"Maximum Special Tax B" means the Maximum Special Tax B, determined in accordance
with Section C, that can be levied in any Fiscal Year on any Assessor's Parcel.
"Non-residential Property" means all Lots of Developed Property for which a building
permit permitting the construction of one or more non-residential buildings or facilities has
been issued by the City.
"Original Parcel" means a Lot which was valid for Fiscal Year 2007-2008, as listed in
Table 1 and Table 3 of Section C below.
City ojTustln .~lpril Z6, 1007
Community Facilities District No. 07-01 (Tustin Legacy/Retail Center) Page 3
Ordinance No. 1339
Page 20 of 37
"Privately Owned Specific Retail Property" means property consisting of the
11 Lt•
fo owin o s..
Instrument Number
Lot Lot Line Adjustment ecordin Date
2006000276405
Parcel 2 2006-0 i 4/25/06
2006000744979
Parcel 1 2006-07 11/13/06
2006000744979
Parcel 2 2006-07 11/03/06
2006000419431
Parcel 2 2006-02 6/22/06
2006000419912
Parcel 4 2006-03 6/23/06
AP: 434-431-24 NA NA
AP: 434-441-12 NA NA
"Proportionately" means that the ratio of the actual Special Tax levy to the Maximum
Special Tax is equal for all Lots of Taxable Property.
"Public Property" means (i) any Assessor's Parcel for which the owner of record, as
determined from the County Assessor's secured tax roll for the Fiscal Year in which the
Special Tax is being levied, is the federal government, the State of California, the County,
the City, or any local government or other governmental agency, {ii) any property within a
Final Map that is located within the boundaries of CFD No. 07-01 and was recorded as of the
January 1 preceding the Fiscal Year in which the Special Tax is being levied and which, as
determined from such Final Map, is or will be a public street, or (iii) any Assessor's Parcel
which, as of the April 1 preceding the Fiscal Year for which the Special Tax is being levied,
has been conveyed, irrevocably dedicated to, or irrevocably offered to the federal
government, the State of California, the County, the City, or any local government or other
governmental agency, provided such conveyance, dedication, or offer is submitted to the
CFD Administrator prior to the May 1 preceding the Fiscal Year for which the Special Taxis
being levied.
"Remainder Lot" means Successor Parcels designated as a remainder lot by the CFD
administrator for which a no building permit will be issued for a Taxable Property use (e.g.,
Public Property).
"Residential Property" means all Lots of Developed Property for which a building permit
permitting the construction thereon of one or more residential dwelling units has been issued
by the City.
"Special Tax" means the Special Tax Aand/or Special Tax B, as applicable.
"Special Tag A" means the special taxes to be levied in each Fiscal Year on each
Assessor's Parcel of Taxable Property to fund the Special Tax Requirement for Facilities.
City of Tustin Apri126, 2007
Community Facilities District No. 07-01 (Tustin Legacy/Retail Center) Page 4
Ordinance No. 1339
Page 21 of 37
"Special Tax B" means the special taxes to be levied in each Fiscal Year on each Assessor's
Parcel of Taxable Property to fund the Special Tax Requirement for Services.
"Special Tax Requirement for Facilities" means (a) that amount with respect to CFD No.
07-01 required in any Fiscal Year to pay (i} for annual debt service on all outstanding Bonds
due in the calendar year which commences in such Fiscal Year; (ii) periodic costs on the
Bonds, including, but not limited to, the costs of remarketing, credit enhancement, and
liquidity facility fees (including such fees for instruments that serve as the basis of a reserve
fund in lieu of cash related to any such Bonds} and rebate payments; (iii) the Administrative
Expenses; (iv) any reasonably anticipated delinquent Special Taxes based on the
delinquency rate for Special Taxes levied in the previous Fiscal Year or otherwise
reasonably expected; (v) any amounts required to establish or replenish any reserve funds
established for the Bonds, and less (b} available funds as directed under the Indenture.
"Special Tax Requirement for Services" means the amount required in any Fiscal Year for
CFD No. 07-01 to (i} pay directly for Authorized Services due in the calendar year
commencing in such Fiscal Year, (ii) pay a proportionate share of Administrative Expenses;
less (iii) a credit for funds available to reduce the annual Special Tax B levy, as determined
by the CFD administrator.
"State" means the State of California.
"Successor Parcel" means a Lot created by a Final Map, lot line adjustment, or similar
instrument that is not an Original Parcel.
"Taxable Property" means all Lots which are not exempt from the Special Tax pursuant to
law or Section G below.
"Trustee" means the trustee or fiscal agent under the indenture.
"Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as
Developed Property or Public Property..
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, commencing with Fiscal Year 2007-2008, all Taxable Property shall be
classified as either Developed Property, Undeveloped Property, or Public Property and shall
be subject to Special Taxes in accordance with this Rate and Method of Apportionment
determined pursuant to Sections C, D, and E below.
City of Tustin Apri126, 2007 -
Community Facilities District No. 07-01 (Tustin Legacy/Retail Center) Page S
Ordinance No. 1339
Page 22 of 37
C. MAXIMUM SPECIAL TAX
1. Special Tax A
Only the Lots identified in Table 1 below are subject to Special Tax A.
a. Developed Prop
The Maximum Special Tax A for each Lot of Developed Property shall be
the applicable Maximum Special Tax A identified in Table 1 below.
Table )
Fiscal Year 2007-2008
Maximum Special Tax A
Community Facilities District No. 07-01
Recording Date Maximum Special Tax A
Lot.. {Instrument Number)
2006-07 APN 434-441-18 NA $74,098
Parcel 1 of LLA No. 2006-01 06/22/2006 $19,458
(No 2006000419431)
2006-07 APN 434-441-16 NA $409,774
Parcel 1 of LLA No. 2006-OS 11/03/2006 $16,500
(No. 2006000744977)
Parcel 1 of LLA No. 2006-04 06/23/2006 $13,200
(No. 2006000421177)
Parcel 2 of LLA No. 2006-03 06/23/2006 $12,926
(No 2006000419912)
Parcel 3 of LLA No. 2006-03 06/23/2006 $10,725
{No. 2006000419912)
Parcel 1 of LLA No. 2006-02 06/22/2006
$19,846
(No 2006000419431)
Parcel 2 of LLA No. 2006-04 06/23/2006
$317,338
(No. 2006000421177)
The Fiscal Year 2007-2008 Maximum Special Tax A, identified in Table 1 above, shall
increase, commencing on July 1, 2008 and on July 1 of each Fiscal Year thereafter, by an
amount equal to two percent {2%) of the amount in effect for the previous Fiscal Year.
City of Tustin April 26, 2007
Community Facilities District No. 07-01 (Tustin Legacy/Retail Center) Page 6
Ordinance No. 1339
Page 23 of 37
b. Undeveloped Property
The Fiscal Year 2007-2008 Maximum Special Tax A for each Assessor's
Parcel of Undeveloped Property shall be $26,051 per Acre, and shall
increase, commencing en July 1, 2008 and on July 1 of each Fiscal Year
thereafter, by ~A ~xnount equal to two percent (2%) of the Maximum Special
Tax A for the previous Fiscal Year.
2. Special Tax B
All Assessor's Parcels of Developed Property within CFD No. 07-01 will be subject
to Special Tax B, unless exempted pursuant to Section G below.
a. Maximum Special Tax B
The Fiscal Year 2007-2008 Maximum Special Tax B shall be $0.06 per
square foot of Floor Area.
b. Increase in the Maximum Special Tax B
The Fiscal Year 2008-2009 Maximum Special Tax B for Developed Property
shall be $0.12 per square foot of Floor Area. The Fiscal Year 2009-2010
Maximum Special Tax B for Developed Property shall be $0.18 per square
foot of Floor Area. The Fiscal Year 2010-2011 Maximum Special Tax B for
Developed Property shall be $0.25 per square foot of Floor Area. On each
July 1, commencing July 1, 2011, after the Maximum Special Tax B has been
increased to $0.25 per square foot of Floor Area, the Maximum Special Tax
B shall be increased by an amount equal to two percent (2%) of the amount
in effect for the previous Fiscal Year.
Table 2
Maximum Special Tax B
2007-08 through 2011-12
Maximum
Fiscal Year S ecial Tax B
2007-08 $0.06
2008-09 $0.12
2009-10 $0.18
2010-11 $0.25
Escalates by
2011-12 2% annuall
City of Tustin April 26, 2007
Conirnunity Facilities District No. 07-01 {Tustin Legacy/Retail Center) Page 7
Ordinance No. 1339
Page 24 of 37
D. ALLOCATION OF 112A.XIMUM SPECIAL TAX A
1. Original Parcels
Square footage of Floor Area for the Original Parcels is shown in Table 3 below.
Table 3
FA of Original Parcels
Community Facilities District No. 07-01
{Original Parcels Square Footage
of Floor Area*
2006-07 APN 434-441-18 44,908
Parcel 1 of LLA No. 2006-01 11,793
2006-07 APN 434-441-16 248,348
Parcel 1 of LLA No. 2006-OS 10,000
Parcel 1 of LLA No. 2006-04 8,000
Parcel 2 of LLA No. 2006-03 7,834
Parcel 3 of LLA No. 2006-03 6,500
Parcel 1 of LLA No. 2006-02 12,028
Parcel 2 of LLA No. 2006-04 192,326
'Square footage amounts contained herein are for the purpose of setting
Special Tax A rates and may not conform to the square foot amounts as
shown on a building permit. The square foot amounts contained herein will
~ovetn for purposes of implementing this Rate and Method of
Apportionment.
2. Methodology for Allocating Maximum Special Tax A to Successor Parcels
If any Original Parcel reflected in Table 3 above is subsequently changed or
modified by the recordation of a Final Map, tot line adjustment or similar instrument,
the total Maximum Special Tax A for all of the newly created Successor Parcels
affected by such Final Map, lot line adjustment or similar instrument, excluding any
Lot classified as a Remainder Lot, shall be equal to the Maximum Special Tax A of
the Original Parcel(s). Maximum Special Tax for Successor Parcels shall be
computed as follows:
a. Determine the square footage of Floor Area for each Lot and Remainder Lot
located within the Final Map, lot line adjustment or similar instrument that created
the Successor Parcels.
City of Tustin ~ April 26, 2007
Community Facilities District No. 07-01 (Tustin Legacy/Retail Center) Page 8
Ordinance No. 1339
Page 25 of 37
b. Divide the square footage of Floor Area for each newly created Lot by the
aggregate square footage of Floor Area of all Lots of Taxable Property calculated
in paragraph "a," to determine the percentage of the aggregate square footage of
Floor Area to be allocated to each such Lot.
c. Multiply the percentagcs(s) computed in paragraph "b" by the Maximum Special
Tax A of the Original Parcel to determine the Maximum Special Tax A for each
Lot. The aggregate Special Tax for the Lots will be levied on the corresponding
Assessor's Parcels.
E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
1. Special Tax A
Commencing with Fiscal Year 2007-2008 and for each following Fiscal Year, the Council
shall determine the Special Tax Requirement for Facilities and shall levy the Special Tax A
until the total Special Tax A levy equals the Special Tax Requirement for Facilities. The
Special Tax A shall be levied each Fiscal Year as follows:
First: The Special Tax A shall be levied Proportionately on each Assessor's Parcel of
Developed Property at up to 100% of the applicable Maximum Special Tax A for Developed
Property;
Second: If additional monies are needed to satisfy the Special Tax Requirement for
Facilities after the first step has been completed, the Special Tax A shall be levied
Proportionately on each Assessor's Parcel of Undeveloped Property at up to 100% of the
applicable Maximum Special Tax for Undeveloped Property.
Notwithstanding the above, under no circumstances will the Special Tax A levied against
any Assessor's Parcel of Residential Property for which a certificate of occupancy has been
issued be increased by more than ten percent as a consequence of delinquency or default by
the owner of any other Assessor's Parcel within CFD No. 07-01.
2. Special Tax B
Commencing with Fiscal Year 2007-2008 and for each following Fiscal Year, the Council
shall levy the Special Tax B until the total Special Tax B levy equals the Special Tax
Requirement for Services. The Special Tax B shall be levied each Fiscal Year as follows:
The Special Tax B shall be levied Proportionately on each Assessor's Parcel of Developed
Properly within CFD No. 07-01 at up to 100% of the applicable Maximum Special Tax B for
such parcel.
City of Tustin April 26, 2007
Community Facilities District No. 07-01 (Tustin Legacy/Retail Center) Page 9
Ordinance No. 1339
Page 26 of 37
F. FUTURE PUBLIC PROPERTY
If any of the Original Parcels identified in Table 1 are acquired by a public entity through
negotiated transaction, by gift, or devise, the present owner of that Parcel will be required to
prepay and permanently satisfy the Special Tax A associated with such Parcel.
G. EXEMPTIONS
1. Special Tax A
No Special Tax A shall be levied on Privately Owned Specific Retail Property or Public
Property.
2. Special Tax B
No Special Tax B shall be levied on Public Property or Undeveloped Property.
H. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad
valorem property taxes and shall be subject to the same penalties, the same procedure, sale
and lien priority in the case of delinquency; provided, however, that the Special Tax maybe
billed directly and/or may be collected at a different time or in a different manner if
necessary or convenient to meet the financial obligations of CFD No. 07-01, or as otherwise
determined by the CFD Administrator. The foreclosure remedies provided for iri the
Indenture shall apply upon the nonpayment of Special Tax A.
I. REVIEWS AND APPEALS
Any taxpayer may file a written appeal of the Special Tax levied onhis/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 grant a credit to eliminate or reduce future Special
Taxes on the appellant's property. No refunds of previously paid Special Taxes shall be
made.
J. PREPAYMENT OF SPECIAL TAX A
1. Prepayment in Full
The obligation of an Assessor's Parcel to pay the Special Tax A may be prepaid and
permanently satisfied as described herein; provided that a prepayment may be made only for
Assessor's Parcels of Developed Property, or an Assessor's Parcel of Undeveloped Property
for which a building permit has been issued, and only if there are no delinquent Special
-----
City of Tustin Apri126, 2007
Cominunlty Facilities District No. 07-O1 (Tustin Legacy/Retail Center) Page 10
Ordinance No. 1339
Page 27 of 37
Taxes with respect to such Assessor's Parcel at the time of prepayment. An owner of an
Assessor's Parcel intending to prepay the Special Tax A obligation shall provide the CFD
Administrator with written notice of intent to prepay. Within 30 days of receipt of such
written notice, the CFD Administrator shall notify such owner of the prepayment amount of
such Assessor's Parcel. The CFD Administrator may charge a reasonable fee for providing
this service. Prepaymcnt must be made not less than 45 days prior to the next occurring date
that notice of redemption of Bonds from the proceeds of such prepayment maybe given to
the Trustee pursuant to the Indenture.
The following additional definitions apply to this Section J:
"Buildout" means, for CFD No. 07-01, that all expected building permits have been issued.
"Previously Issued Bonds" means, for any Fiscal Year, all Outstanding Bonds that are
deemed to be outstanding under the Indenture after the first interest and/or principal payment
date following the current Fiscal Year.
The Prepayment Amount {defined below} shall be calculated as summarized below
(capitalized terms as defined below):
Bond Redemption Amount
plus Redemption Premium
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
less Cavitalized Interest Credit
Total: equals Prepayment Amount
As of the proposed date of prepayment, the Prepayment Amount {defined below) shall be
calculated as follows:
Paragraph No.•
i . Confirm that no Special Tax delinquencies apply to such Assessor's Parcel.
2. For Assessor's Parcels of Developed Property, determine the Maximum Special Tax
A. For Assessor's Parcels of Undeveloped Property for which a building permit has
been issued, compute the Maximum Special Tax A for that Assessor's Parcel as
though it was already designated as Developed Property, based upon the building
permit which has already been issued for that Assessor's Parcel.
3. Divide the Maximum Special Tax A computed pursuant to paragraph 2 by the total
estimated Maximum Special Tax A for the entire CFD No. 07-01 based on the
Developed Property Special Tax A which could be levied in the current Fiscal Year
on all expected development through Buildout of CFD No. 07-01, excluding any
Assessor's Parcels which have been prepaid.
City of Tustin April 26, 2007
Community Facilities District No. 07-01 (Tustin Legacy/Retail Center) Page 11
Ordinance No. 1339
Page 28 of 37
4. Multiply the quotient computed pursuant to paragraph 3 by the amount of Previously
Issued Bonds to compute the amount of Previously Issued Bonds to be retired and
prepaid (the "Bond Redemption Amount").
5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the
applicable redemption premium (e.g., the redemption price-100%), if any, on the
Previously Issued Bonds to be redeemed (the "Redemption Premium").
6. Compute the amount needed to pay interest on the Bond Redemption Amount from
the first bond interest and/or principal payment date not covered by the current Fiscal
Year Special Taxes until the earliest redemption date for the Previously Issued
Bonds.
7. Determine the Special Tax A levied on the Assessor's Parcel in the current Fiscal
Year which has not yet been paid.
8. Compute the minimum amount the CFD Administrator reasonably expects to derive
from the reinvestment of the Prepayment Amount less the Administrative Fees and
Expenses (defined below) from the date of prepayment until the redemption date for
the Previously Issued Bonds to be redeemed with the prepayment.
9. Add the amounts computed pursuant to paragraphs 6 and 7 and subtract the amount
computed pursuant to paragraph 8(the "Defeasance Amount").
10. The administrative fees and expenses of CFD No. 07-01 are as calculated by the
CFD Administrator and include the costs of computation of the prepayment, the costs
to invest the prepayment proceeds, the costs of redeeming Bonds, and the costs of
recording any notices to evidence the prepayment and the redemption (the
"Administrative Fees and Expenses").
11. 'The reserve fund credit (the "Reserve Fund Credit") shall equal the lesser of: (a) the
expected reduction in the reserve requirement (as defined in the Indenture), if any,
associated with the redemption of Previously Issued Bonds as a result of the
prepayment, or (b) the amount derived by subtracting the new reserve requirement
(as defined in the Indenture} in effect after the redemption of Previously Issued
Bonds as a result of the prepayment from the balance in the reserve fund on the
prepayment date, but in no event shall such amount be less than zero. No Reserve
Fund Credit shall be granted if the amount then on deposit in the reserve fund fir the
Previously Issued Bonds is below 100% of the reserve requirement (as defined in the
Indenture).
12. If any capitalized interest for the Previously Issued Bonds will not have been
expended as of the date immediately following the first interest and/or principal
payment following the current Fiscal Year, a capitalized interest credit shall be
calculated by multiplying the quotient computed pursuant to paragraph 3 by the
expected balance in the capitalized interest fund or account under the IndenturE; after
such first interest and/or principal payment (the "Capitalized Interest Credit").
City of Tustin April 26, 2007
Community Facilities District No. 07-01(Tustin Legacy/Retail Center) Page 12
Ordinance No. 1339
Page 29 of 37
13. The Special Tax A prepayment is equal to the sum of the amounts computed
pursuant to paragraphs 4, S, 9, and 10, less the amounts computed pursuant to
paragraphs 11 and 12 (the "Prepayment Amount").
From the Prepayment Amount, the amounts computed pursuant to paragraphs 4, 5, 9, 11 and
12 shall be deposited into the appropriate fund as established under the Indenture and be
used to retire Previously Issued Bonds or to make scheduled debt service payments or to pay
administrative expenses related to the prepayment of the Special Tax. The amount computed
pursuant to paragraph 10 shall be retained by CFD No. 07-01.
The Special Tax A Prepayment Amount may be insufficient to redeem a full $5,000
increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereof
will be retained in the appropriate fund established under the Indenture to be used with the
next prepayment of Bonds or to make debt service payments.
Upon confirmation of the payment of the current Fiscal Year's Special Tax A levy as
determined under paragraph 7 (above), the CFD Administrator shall remove the current
Fiscal Year's Special Tax A levy for such Assessor's Parcel from the County tax rolls. With
respect to any Assessor's Parcel that is prepaid, the Council shall cause a suitable notice to be
recorded in compliance with the Act, to indicate the prepayment of the Special Tax A and
the release of the Special Tax A lien on such Assessor's Parcel, and the obligation of such
Assessor's Parcel to pay the Special Tax A shall cease.
Notwithstanding the foregoing, no Special Tax A prepayment shall be allowed unless, at the
time of such proposed prepayment, the amount of Maximum Special Tax A that may be
levied on Taxable Property within CFD No. 07-01(after excluding Privately Owned Specific
Retail Property and Public Property that are exempt from the Special Tax as set forth in
Section G.1) both prior to and after the proposed prepayment is at least 1.1 times the
maximum annual debt service on all Previously Issued Bonds, plus the Administrative
Expenses.
2. Prepayment in Part
The Special Tax A on an Assessor's Parcel of Developed Property or an Assessor's Parcel of
Undeveloped Property for which a building permit has been issued may be partially prepaid.
The amount of the prepayment shall be calculated as in Section J.1; except that a partial
prepayment shall be calculated according to the following formula:
These terms have the following meaning:
PP = the partial prepayment
PE = the Special Tax A Prepayment Amount calculated according to Section ].1
A = the Administrative Fees and Expenses calculated according to Section J.1
F = the percentage, expressed as a decimal, by which the owner of the Assessor's Parcel
is partially prepaying the Special Tax A
City of Tustin ~ April 26, 7007
Community Facilities District No. 07-01 (Tustin Legacy/Retail Center) Page 13
Ordinance No. 1339
Page 30 of 37
The owner of any Assessor's Parcel who desires such prepayment shall notify the CFD
Administrator of such owner's intent to partially prepay the Special Tax A and the
percentage by which the Special Tax A shall be prepaid. The CFD Administrator shall
provide the owner with a statement of the amount required for the partial prepayment ofthe
Special Tax A for an Assessor's Parcel within 30 days of the request and may charge a
reasonable fee for providing this service. With respect to any Assessor's Parcel that is
partially prepaid, the Council shall (i) distribute the funds remitted to it according to Section
J.1, and (ii) indicate in the records of CFD No. 07-01 that there has been a partial
prepayment of the Special Tax A and that a portion of the Special Tax A with respect to such
Assessor's Parcel, equal to the outstanding percentage (1.00 - F} of the remaining Maximum
Special Tax A, shall continue to be levied on such Assessor's Parcel pursuant to Section E.1.
K. PREPAYMENT OF SPECIAL TAX B
No prepayment of Special Tax B is allowed for any Assessor's Parcel within CFD No.. 07-
01.
L. TERM OF SPECIAL TAX
The Special Tax A shall be levied for a period not to exceed forty-five years commencing
with Fiscal Year 2007.2008. The Special Tax B shall be levied as long as necessary to meet
the Special Tax Requirement for Services.
City of Tustin April 26, 2007
Community Facilities District No. 07-01 (Tustin Legacy/Retail Center) Page 14
Ordinance No. 1339
Page 31 of 37
EXHIBIT A
TYPES 4F FACILITIES AND SERVICES
Facilities
The types of facilities to be financed by the Community Facilities District are street
improvements, including grading, paving, curbs and gutters, sidewalks, street signalization and
signage, street lights and parkway and landscaping related thereto, storm drains, utilities, public
parks and recreation facilities, public library facilities, fire protection facilities and equipment and
land, rights-of-way and easements necessary for any of such facilities.
Services
The types of services to be financed by the Community Facilities District are police
protection services, fire protection services, ambulance and paramedic services, recreation program
services, maintenance of parks, parkways and open space and flood and storm protection services.
City of Tustin April 26, 2007
Community Facilities District No. 07-01 (Tustin Legacy/Retail Center) Page A-1
Ordinance No. 1339
Page 32 of 37
EXHIBIT B
CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT N0.07-1
(TUSTIN LEGACY/RETAIL CENTER)
MAXIMUM SPECIAL TAX A FOR DEVELOPED PROPERTY
FISCAL YEAR 2007-2008
Recording Date Maximum Special Taa A
.Lot (Instrument Number)
2006-07 APN 434-441-18 NA $74,098
Parcel 1 of LLA No. 2006-01 06/22/2006 $19,458
(No 2006000419431)
2006-07 APN 434-441-16 NA $409,774
Parcel 1 of LLA No. 2006-OS 11/03/2006 $16,500
(No 2006000744977)
Parcel 1 of LLA No. 2006-04 06/23/2006
(No 2006000421177) $13,200
Parcel 2 of LLA No. 2006-03 06/23/2006 $12,926
(No 2006000419912)
Parcel 3 of LLA No. 2006-03 06/23/2006 $10,725
(No 2006000419912)
Parcel 1 of LLA No. 2006-02 06/22/2006 $19,846
(No 2006000419431 }
Parcel 2 of LLA No. 2006-04 06/23/2006
(No 2006000421177) $317,338
The Fiscal Ycar 2007-2008 Maximum Special Tax A, identified in Table 1 above, shall increase, commencing on July 1,
2008 and on July 1 of each Fiscal Year thereafter, by an amount equal to two percent (2%) of the amount in effect for the
previous Fiscal Year.
Ordinance No. 1339
Page 33 of 37
EXHIBIT C
CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT N0.07-1
(TUSTIN LEGACY/RETAIL CENTER)
MAXIMUM SPECIAL TAX B FOR DEVELOPED PROPERTY
FISCAL YEAR 2007-2008 through 2011-2012
Maximum
Fiscal Year S ecial Tax B
2007-08 $0.06
2008-09 $0.12
2009-10 $0.18
2010-11 $0.25
Escalates by 2%
2011-12 annually
Commencing on July 1, 2012, the Maximum Special
Tax B, identified in the table above, shall be
increased by an amount equal to two percent (2%) of
the amount in cffcct for the previous Fiscal Year.
Ordinance No. 1339
Page 34 of 37
EXHIBIT D
CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT N0.07-1
(TUSTIN LEGACY/RETAIL CENTER)
BOUNDARY MAP
Ordinance No. 1339
Page 35 of 37
-uO
w
cn Q-
cD �.
w0
rn :
0
0 m
W
40
_._.-_-------- ----- —--- ............._........_
w PROPOSED BOUNDARIES OF
co
'SHEET 1 OF 2
CITY OF TUSTIN
COMMUNITY FACILITIES DISTRICT NO. 07-1
(TUSTIN LEGACY / RETAIL CENTER)
® COUNTY OF ORANGE
Assessor %4, .fir STATE OF CALIFORNIA
Parcels within
?
CFD 07-1
,
Boundaries:
434-431-03
�•<
434-431-05
`
434-431-06
�.
434-431-10
'
434-431-11
Proposed Bounder----,_---__—
r
oundarLes of City 1
i -~-------
434-431-12`
j�
1
434-431-21
(Tustin Legacy / Retail 4
434-431-22
w -
434-431-24
Area subject to Tax B Only
434-431-25
434-431-30
.,
434-441-01
434-441-03
'"Reference is hereby made to the Assessor maps of the County of
434-441-04
Orange and to Orange County Lot Line Adjustment (LLA)
434-441-05
2006-01, recorded on 04/25/06 as instrument No. 2006000276405,
434-441-06
2006-02, recorded on 06/22/06 as Instrument No. 2006000419431,
j 434-441-07
2006-03, recorded on 06/23/06 as Instrument No. 20060004199 12, ,
434-441-08 .`
2006-04, recorded on 06/23/06 as Instrument No. 2006000421177,
434-441-09
2006-05, recorded on 11/03/06 as Instrument No. 2006000744977, and
434-441-10
2006-07, recorded on 11/03/06 as Instrument No. 2006000744979,
i 434.441-11
for a description of the lines and dimensions of
' 434-441-12
each lot and parcel.
TUSTIN RIfN[F1 ■tvn
i 43+4 - 441 -13
434-441-14
434-441-15
434-441-16
�•<
434-441-17
434-441-18
F.., ii- .,
.. . ........ - ---- ----------
--
Proposed Bounder----,_---__—
r
oundarLes of City 1
i -~-------
of Tustin Comunity
j�
Facilities District No. 07-1I
(Tustin Legacy / Retail 4
Center)
Area Subject to Tax A and Tax BI
Area subject to Tax B Only
(1) Filed in the office of the City Cleric of the City of
Tustin this _Lkt_ day of , 2007.
k*Pamela Stoker, City Clerk, City of Tustin
(2) I hereby certify that the within nap showing the proposed
boundaries of City of Tustin Community Facilities District
No. 07-1 (Tustin Legacy / Retail Center), County Of
Orange, State of California, was approved by the City
Council of the City of Tustin at a regular meeting ftweof,
held on the /s* day of -1,(!, . 2007. by its
Resolution No. 07 - IV,
6 --Pamela Stoker, City Clerk, City of Tustin
Retarding requested by: City of Tustin
(3) Filed this qfl_., day of Miim— . 2007, at the hour
ofv:24 o'cbck gLm, in Boole 92. of Maps of
Assessment and Community Facilities Districts at page
U1_2 and as Instrument No.
_Jm1eooq%D-t_ 1 L L in the office of the County
Recorder of the County of Orange, State of California.
Tom Daly
County Clerk -Recorder of County of Orange
By LL,.
Deputy
Fee E� }
Exempt recording requested, per
CA Government Code §6103
r SHEET 2 OF 2 PROPOSED BOUNDARIES OF
CITY OF TUSTIN
COMMUNITY FACILITIES DISTRICT NO. 07-1
(TUSTIN LEGACY / RETAIL CENTER)
Qr"
COUNTY OF ORANGE
STATE OF CALIFORNIA
. ............. ... ..............
Proposed Boundaries of City of
Tustin Community Facilities
District No. 07-1 (Tustin Legacy I
Retail Center)
...........
RANCH
ROA
434-441=18 !ji
J: A R
.17
43� 441
434-441-16
17
4#
LLA
00
v
' V A
0 401
Area Subject to Tax A:
Area Subject to Tax B:
434-441-16
434-431-24
M 0 434-441-17 4
434-441-12
CD
CD
434-441-18
z LLA 2006-01 Parcel 2
-4 LLA 2006-01 Parcel I
LLA 2006-02 Parcel 2
*% LLA 2006-03 Parcel 4
0 LLA 2006-02 Parcel I
LLA 2006-03 Parcels 2 and 3
--4 Q0
LLA 2006-04 Parcels 1 and 2 LLA 2006-07 Parcels I and 2
LLA 2006-05 Parcel 1 All areas subject to Tax A