RES-9219 Calling for Special Election Regarding Combining of Improvement AreasRESOLUTION NO. 9219
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ORANGE CALLING SPECIAL ELECTIONS
REGARDING COMBINING OF IMPROVEMENT AREAS
WITHIN THE CITY OF ORANGE COMMUNITY
FACILITIES DISTRICT NO. 91-2 (SERRANO
HEIGHTS PUBLIC IMPROVEMENTS), AND ALTERATION OF
THE RATE AND METHOD OF APPORTIONMENT
OF SPECIAL TAXES, THE AUTHORIZED FACILITIES,
AND THE BONDED INDEBTEDNESS AND
APPROPRIATIONS LIMITS FOR THE
DISTRICT WHEREAS, under the provisions of the Mello-Roos Community Facilities Act
of 1982,as amended (the "Act"), and in furtherance of its proceedings in connection with the
City of Orang Ie Community Facilities District No. 91-2 (Serrano Heights
Public Improvements) (the District"), the City Council of the City of Orange (the "City") adopted Resolution
No. 9207 on January 11, 2000 entitled "A Resolution of the City Council of the City
of Orange Combining Improvement Areas Within the City of Orange Community Facilities District
No. 91-2 (Serrano Heights Public Improvements), and Considering Alteration of the
Rate and Method of Apportionment of Special Taxes and the Authorized Facilities for
the Prior Improvement Areas and the Bonded Indebtedness and Appropriations Limits for the
Prior Improvement Areas" (the Resolution of Consideration"), which Resolution of
Consideration expressed the determination of the City Council to combine and thereby eliminate the
formerly designated improvement areas within the District, to the end that such improvement areas shall
constitute undivided portions of the
District, without separate designation;WHEREAS, in the Resolution of Consideration the City Council
also determined to alter the rat'e and method of apportionment of special taxes, the facilities proposed
to be financed, the bonded indebtedness limit and the appropriations limit for the District, subject
to the approval of at least two-thirds of the qualified electors of each of the
improvement areas within the District,and caUed for a public hearing on the matters set forth
in the Resolution of Consideration;WHEREAS, the Resolution of Consideration, which
makes reference to the boundaries of the District delineating the improvement areas and GOntains a
description of the proposed rate and method of apportionment of special taxes,
authorized facilities, bonded indebtedness limit and appropriations limit for the District is on file with the City
Clerk and the provisions thereof are incorporated herein by this reference as
if fully set forth herein;WHEREAS, a revised rate and method of apportionment of
special taxes for the District in the form of Exhibit A hereto (the "Revised Rate emd
Method"), allowing for an additional partial prepayment of special taxes to be levied in the District
to ensure compliance with an estimated maximum total property tax rate of not to exceed
two percent (2%) of expected purchase prices of homes in the District, has been provided to
the landowners in the District;WHEREAS, on this date, this City Council held a noticed
public hearing as required by the Act and the Resolution of Consideration relative to the matters
described
in the Resolution of Consideration;WHEREAS, at said hearing all interested persons desiring to
be heard on all matters pertaining to the matters described in the Resolution of Consideration were
heard and a full
WHEREAS, written protests with respect to the proposed combination and elimination
of improvement areas and the alterations described in the Resolution of Consideration have not
been filed with the City Clerk by fifty percent (50%) or more of the registered voters residing
within the territory of either of the improvement areas of the District, or property owners of one-
half (112) or more of the area ofland within either ofthe improvement areas ofthe District; and
WHEREAS, the propositions of the combining of the improvement areas and the
approval of the revised rate and method of apportionment of special taxes, the revised facilities,
the revised bonded indebtedness limit and the revised appropriations limit for the District shall
be submitted to the qualified electors of each of the improvement areas, as required by the Act.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ORANGE DOES
HERE:BY RESOLVE AS FOLLOWS:
Section 1. The foregoing recitals are true and correct. The combining of the areas in the
District known as Improvement Area No. 1 and Improvement Area No.2, respectively, of the
District, and thereby the elimination of separate improvement areas in the District as described in
Section 2 of the Resolution of Consideration, has not been the subject of a majority protest in
either of the improvement areas pursuant to the Act.
Section 2. The revised facilities to be financed by, and the revised bonded indebtedness
limit and revised appropriations limit for the District, as described in Sections 4 and 5 of the
Resolution of Consideration, and the Revised Rate and Method as described in Exhibit A hereto,
have not been precluded by majority protest in either of the improvement areas pursuant to
Section 53337 of the Act.
Section 3. All prior proceedings taken by this City Council in connection with the
combination (and thereby elimination) of the improvement areas within the District, and the
alteration of the rate and method of apportionment of special taxes, facilities to be financed,
bonded indebtedness limit and appropriations limit for the District, all as described in the
Resolution of Consideration and in Exhibit A hereto, as applicable, have been duly considered
and are hereby found and determined to be valid and in conformity with the requirements of the
Act.
Section 4. Notwithstanding any prior resolution adopted by this City Council in
connection with the District, the elimination of the improvement areas in the District is hereby
confirmed, the facilities authorized to be financed by ,md bonded indebtedness limit and annual
appropriations limit for the District shall be as specified in Sections 4 and 5, respectively, of the
Resolution of Consideration, and the rate and method of apportionment of special taxes for the
District shall be as specified in Exhibit A hereto, all subject to elections of the qualified electors
described below.
Section 5. Pursuant to the Act, the propositions of the combining of the improvement
areas within the District and the alteration of the rate and method of apportionment of the special
tax to be levied within, the facilities to be financed by, and the bonded indebtedness and annual
appropriations limit for the District, shall be submitted to the qualified electors of each
improvement area in the District at an election called therefor as provided below.
Section 6. The propositions of combining of the improvement areas within the District
and the alteration of the rate and method of apportionment of special taxes, facilities authorized
to be financed by and bonded indebtedness limit and annual appropriations limit for the District
shall be submitted to the qualified electors of the improvement areas of the District in ballot
2
measures, the forms of which are attached hereto as Exhibit B and by this reference incorporated
herein. Said form of ballot for each improvement area is hereby approved.
Section 7. This City Council hereby finds that fewer than 12 persons have been
registe:::red to vote within the territory of either of the improvement areas within the District for
each of the 90 days preceding the close of the public h(:aring heretofore conducted and concluded
by the City Council for the purposes of the Resolution of Consideration. Accordingly, and
pursuant to Section 53326(b) of the Act, this City Council finds that for purposes of these
proceedings the qualified electors for each improvement area are the landowners within the
respective improvement area and that the vote shall be by said landowners or their authorized
represc~ntatives, each having one vote for each acre or portion thereof such landowner owns in the
applicable improvement area as of the close of the public hearing.
Section 8. The City Council hereby calls a sp(:cial election in each improvement area to
consider the propositions described in Section 6 hereoj~ which elections shall be held in the City
Council Chambers immediately following the adoption of this Resolution. The City Clerk is
hereby designated as the official to conduct said elections. The City Clerk has been provided
with a copy of this Resolution, a map of the boundaries of the improvement areas in the District,
and a sufficient description to allow the City Clerk to determine the boundaries of the
improvement areas.
The voted ballots shall be returned to the City Clerk not later than immediately following
the adoption of this Resolution, and, when all of the qualified voters have voted, the elections
shall be closed and canvassed.
Section 9. Pursuant to Section 53327 of the Code, the elections shall be conducted by
mail or hand-delivered ballot pursuant to Section 4000 of the California Elections Code.
This City Council hereby finds that paragraphs (a), (b), (c) (1) and (c)(3) of said Section 4000
are applicable to these special
elections.Section 10. The City Clerk has caused to be delivered to each of the qualified electors
of the improvement areas in the District a ballot in the applicable form set forth in Exhibit B
hereto.Each ballot indicated the number of votes to be voted by the respective landowner to which
it
pertains.Each ballot was accompanied by all supplies :md written instructions necessary for
the use and return of the ballot. The envelope to be used to return the ballot was enclosed with
the ballot, with the return postage prepaid, and contained the following: (a) the name and address
of the landowner, (b) a declaration, under penalty of peIjury, stating that the voter is the owner
of record or the authorized representative of the landowm:r entitled to vote and is the person
whose name appears on the envelope, (c) the printed name, signature and address of the voter, (d)
the date of signing and place of execution of the declaration pursuant to clause (b) above, and ( e)
a notice that the envelope contained an official ballot and was to be opened only by the
canvassing
board.Analysis and arguments with respect to the ballot measures have been waived by
the qualified electors as set forth in the voted ballots, and are otherwise hereby waived, as
permitted by Section53327(b) of the
Act.Section 11. The City Clerk shall accept the ballots of the qualified electors received
prior to or immediately following the adoption of this Resolution, whether said ballots be
personally delivered or received by mail. The City Clerk shall have available ballots which may be
marked on the election day by said qualified
electors.
Section 12. The City Council hereby further finds that to the extent that the provisions of
Section 53326 of the Act require a minimum of 90 days following the adoption of this
Resolution to elapse before said special elections, such provisions are for the protection of the
qualified electors of the improvement areas of the District. This City Council finds and
determines that the qualified electors have been fully apprised of and have agreed to waive such
minimum time for the election, as evidenced by the inclusion of such waiver in the ballot of each
lando~ner, and have thereby been fully protected in these proceedings. The City Council also
finds and determines that the City Clerk has concurred in the shortened time for the election.
Section 13. This Resolution shall take effect immediately upon its adoption.
ADOPTED this 22nd day of February, 2000.
ATTEST:
Cassandra 1. C
I hereby certify that the foregoing Resolution was duly and regularly adopted by the City
Council of the City of Orange at a regular meeting thereof held on the 22nd day of February,
2000, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEMBERS: MURPHY, SLATER, COONTZ, SPURGEON
COUNCIL MEMBERS: ALVAREZ
COUNCIL MEMBERS: NONE
COUNCIL MEMBERS: NON
C1
4
EXHIBIT A
REVISED RATE AND METHOD OF APPORTIONMENT
OF SPECIAL TAXES FOR CITY OF ORANGE
COMMUNITY FACILITIES DISTRICT NO. 91-
2 SERRANO HEIGHTS PUBLIC
IMPROVEMENTS)A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels in the
City of Orange Community Facilities District No. 91-2 (Serrano Heights
Public Improvements)CFD No. 91-2") and collected each Fiscal Year commencing in Fiscal Year
2000-01, in an amount determined by the CFD Administrator (as defined below) through
the application of the procedures described below. All of the real property in CFD No. 91-
2, 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 The terms hereinafter set
forth have the following meanings:Acre or Acreage" means the number of acres of 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 multiplied by 43,560.Act" means the Mello-Roos Community
Facilities Act of 1982, as amended,being Chapter 2.5 of Part 1 of Division 2 of Title 5 of
the Government
Code of the State of California.Administrative Expenses" means
the following actual or reasonably estimated costs related to the administration of CFD No. 91-
2: the costs of computing the Special Taxes and preparing the annual Special Tax
collection schedules (whether by the City or designee thereof or both); the costs of
collecting the Special Taxes (whether by the County, the City, through foreclosure
proceedings, or otherwise); the costs of remitting the Special Taxes to the Fiscal Agent; the costs
of the Fiscal Agent (including its legal counsel) in the discharge of the duties required
of it under the Fiscal Agent Agreement;the costs to the City, CFD No. 91-2
or any designee thereof of complying with arbitrage rebate requirements; the costs to the City,
CFD No. 91-2 or any designee thereof of complying with
City, CFD No. 91-2 or obligated persons disclosure requirements associated with applicable federal
and state securities laws and of the Act; the costs associated
with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes;
the costs of the City, CFD No. 91-2 or any designee thereof related to
an appeal of the Special Tax; the costs associated with the release of funds from
an escrow account; 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. 91-2 for any other administrative purposes ofCFD No.91-2,
including attorney's fees and other costs
related to commencing and pursuing to completion any fDreclosure of delinquent Special Taxes.Assessor's
Parcel" means a lot or parcel shown
in
Assessor's Parcel Map" means an official map of the Assessor of the County
designating parcels by Assessor's Parcel number.
Assigned Special Tax" means the Special Tax for each Land Use Class of
Developed Property, as determined in accordance with Section C below.
Backup Special Tax" means the Special Tax applicable to each Assessor's
Parcel of Developed Property, as determined in accordance with Section C below.
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. 91-2 under the
Act.Builder" means an entity which owns a residential dwelling unit
immediately prior to the issuance of a Certificate of Occupancy, and then sells that dwelling unit for
its Value to an Original
Homeowner.Certificate of Occupancy" means a document issued by the City which
permits the initial habitation of a newly constructed residential dwelling
unit.CFD Administrator" means the Director of Finance of the City, or
designee thereof, who is responsible for determining the Special Tax Requirement and
providing for the levy and collection of the Special
Taxes.CFD No. 91-2" means the City of Orange Community Facilities District
No. 91-2 (Serrano Heights
Public Improvements).City" means the City
of Orange.County" means the County
of Orange.Council" means the City Council of the City of Orange, acting as
the legislative body ofCFD
No. 91-2.Developed Property" means, for each Fiscal Year,
all Taxable Property,exclusive of Taxable Property Owner Association Property or
Taxable Public Property,for which a building permit for new construction was issued after January
1, 1999 and prior to March 1 of the
prior Fiscal Year.Fiscal Agent" means the fiscal agent under the
Fiscal Agent Agreement.Fiscal Agent Agreement" means the fiscal agent agreement
or other instrument pursuant to which Bonds are issued, as modified, amended and/
or supplemented from time to time, and any instrument replacing or
supplementing
the same.30.Fiscal Year" means the period starting July 1 and ending on
the following June Land Use Class" means any of the classes listed
in Table 1.Maximum Special Tax" means the maximum Special
Tax, determined in accordance with Section C below, that can be levied in any Fiscal Year on
any
Assessor'
Non-Residential Property" means all Assessor's Parcels of
Developed Property for which a building permit(s) was issued for a non-
residential use.One-Time Special Tax" means a one..time special tax paid by a
Builder prior to issuance of a Certificate of Occupancy by the City, in order to reduce
the Backup Special Tax so that the Total Tax and Assessment Obligation during the first Fiscal
Year in which an Assessor's Parcel is considered Developed Property will not exceed 2.
0
percent of Value.Original Homeowner" means the first homeowner to
purchase a residential dwelling unit from a Builder after the issuance of a Certificate of Occupancy
by the City.Outstanding Bonds" means all Bonds which are outstanding
under and in accordance with the provisions of the
Fiscal Agent Agreement.Property Owner Association Property" means any
property within the boundaries of CFD No. 91-2 that is owned by or irrevocably
dedicated to a property owner association, including
any master or sub-association.Proportionately" means for Developed Property that
the ratio of the actual Special Tax levy to the Assigned Special Tax is equal for
all Assessor's Parcels of Developed Property within CFD No.
91-2. For Undeveloped Property, "Proportionately"means that the ratio of the actual Special Tax le:vy per
Acre to the Maximum Special Tax per Acre is equal for all Assessor's Parcels of
Undeveloped Property in CFD No. 91-2.Public Property" means any property
within the boundaries of CFD No. 91-2 that (i) is owned by or irrevocably
offered for dedication to the federal government, the State, the County, the City or
any other public agency, provided however that any property leased by a public agency to
a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and
classified in accordance with its use; or (ii)is encumbered by a public utility
easement making impractical its use for any purpose
other than that set forth in the easement.Residential Property" means
all Assessor's Parcels of Developed Property for which a building permit has been
issued for purposes
of constructing one or more residential dwelling units.Residential Floor Area" means all
of the square footage of living area within the perimeter of a
residential structure, not including any carport, walkway, garage,overhang, patio, enclosed patio,
or similar area. The determination of Residential Floor Area shall be made by reference to the
building
permit(s) issued for such Assessor's Parcel.Single Family Attached
Property" means all Assessor's Parcels of Residential Property for which building
permits have been issued for attached residential units.Single Family Detached
Property" means all Assessor's Parcels of Residential Property for which building
permits have been issued for detached residential units.Special Tax" means the special tax to
be levied in each Fiscal Year on each Assessor's
Parcel of Developed Property, Undeveloped Property, Taxable Property Owner Association Property, and
Taxable
Public
Special Tax Requirement" means that amount required in any Fiscal Year to
pay: (1) debt service and other periodic costs on the Bonds due in the calendar year
commencing in such Fiscal Year, (2) the cost of acquisition or construction of authorized
facilities of CFD No. 91-2, (3) Administrative Expenses, (4) any amount required
to replenish any reserve fund established in association with the Bonds, (5) for
reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special
Taxes levied in the previous Fiscal Year, (6) the costs ofremarketing, credit enhancement
and liquidity facility fees (including such fees for instruments that serve as the basis of
a reserve fund related to any indebtedness in lieu of cash), and (7) the One Time
Special Tax, less (8) a credit for funds available to reduce the annual Special Tax levy,
as determined by the CFD Administrator pursuant to the Fiscal Agent
Agreement.State" means the State of
California.Taxable Property" means all of the Assessor's Parcels within the boundaries
of CFD No. 91-2 which are not exempt from the Special Tax pursuant to law or
Section
F below.Taxable Property Owner Association Property" means all Assessor'
s Parcels of Property Owner Association Property that are not exempt pursuant to Section
F below.Taxable Public Property" means all Assessor's Parcels of Public
Property that are not exempt pursuant to Section
F below.Total Tax and Assessment Obligation" means for an Assessor's
Parcel or portion of an Assessor's Parcel, the sum of the projected ad valorem taxes and
any special assessments or taxes which may be included on the annual property tax bill
during the first full Fiscal Year after the sale of the home to the Original Homeowner,
including but not limited to: the Maximum Special Tax for CFD No. 91-2, general
obligation debt of the City or any other public agency, special assessments, and other charges
placed on the
property tax bill.Undeveloped Property" means, for each Fiscal Year, all
Taxable Property not classified as Developed Property, Taxable Property Owner
Association Property, or
Taxable Public Property.Value" means the full sales price of a dwelling unit upon the sale
by the Builder to the Original Homeowner, as listed on the escrow closing statement
for such sale.B. ASSIGNMENT TO
LAND USE CATEGORlES Each Fiscal Year, all Taxable Property within CFD No. 91-2
shall be classified as Developed Property, Taxable Public Property, Taxable Property
Owner Association Property, or Undeveloped Property, and shall be subject to Special Taxes in accordance
with the rate and method of apportionment determined pursuant to Sections C and
D below. Residential Property shall be assigned to Land Use Classes 1 through 12 and
Non-Residential Property shall be assignc~d
to Land Use Class 13.The Assigned Special Tax for Residential Property
shall be based on the Residential Floor Area located on the Assessor's Parcel.
The Assigned Special Tax for Non-Residential Property shall be based on the
Acreage
of
C. MAXIMUM SPECIAL TAX RATE
1. Developed Property
a. Maximum Special Tax
The Maximum Special Tax for each Assessor's Parcel classified as
Developed Property shall be the greater of (i) the amount derived by
application of the Assigned Special Tax or (ii) the amount derived by
application of the Backup Special Tax. In a Fiscal Year when the One-
Time Special Tax is to be applied to an Assessor's Parcel, the One-
Time Special Tax shall be added to the greater of (i) or (ii) to determine
the Maximum Special Tax which may be levied on the Assessor's Parcel
in that Fiscal
Year.b. Assigned Special
Tax The Assigned Special Tax for Fiscal Year 2000-01 for each
Land Use Class is shown in
Table
TABLE 1
Assigned Special Taxes for ])eveloped Property
For Fiscal Year 2000-
01 Community Facilities District No.
91-
2 AssIgneaSpeclaJ Description Residential FloorAreaTax
Land Use Perunit!
Acre Class 1 Single Family Detached Property :> 3,599 sq. ft. $3,304.80
per Unit 2 Single Family DetachedProperty 3,400 - 3,599 sq. ft. $3,121.20 per
Unit 3 Single Family Detached Property 3,200 - 3,399 sq. ft. $2,937.60 per Unit
4 Single Family Detached Property 3,000 - 3,199 sq. ft. $2,754.00 per Unit 5
Single Family Detached Property 2,800 - 2,999sq. ft. $2,570.40 perUnit 6 Single
Family Detached Property 2,600 - 2,799 sq. ft. $2,386.80 per Unit 7 Single Family
Detached Property 2,400 - 2,599sq. ft. $2,203.20 per Unit 8Single Family Detached
Property 2,200 - 2,399 sq. ft. $2,019.60 per Unit 9 Single Family Detached Property
1,900 - 2,199 sq. ft. $1,744.20 per Unit 10 Single Family Detached Property <1,
900 sq. ft. $1,560.60 per Unit 11 Single Family Attached Property >1,
500 sq. ft. $1,377.00 per Unit 12 Single Family Attached Property <1,
500 sq. ft. $1,096.50 per Unit 13 Non Residential Property Not Applicable $
22,175.43 per Acre c. Backup SpecialTax The Fiscal
Year 2000-01 Backup
Special Tax for an Assessor's Parcel of Developed Property shall equal $22,
175.43 per Acre.d. Increasein the Assigned
Special Tax and Backup Special Tax On each July 1, commencing
on July 1, 2001, the Assigned Special Tax and the Backup Special Tax
shall be increased ~y an ~mount equal to two percent (2%) of the amount
in effect for the prevIOUS FIscal Year.A-6
2. Undeveloped Property, Taxable Property Owner Association Property, and
Taxable Public Property
a. Maximum Special Tax
The Fiscal Year 2000-01 Maximum Special Tax for
Undeveloped Property, Taxable Property Owner Association Property, and
Taxable Public Property in CFD No. 91-2 shall be $22,175.43
per Acre.b. Increase in the Maximum
Special Tax On each July 1, commencing on July 1,2001, the Maximum
Special Tax for Undeveloped Property, Taxable Property Owner
Association Property,and Taxable Public Property shall be increased by an amount equal
to two percent (2%) ofthe amount in effect for the previous
Fiscal Year.D. ONE TIME
SPECIAL TAX As a condition of the issuance of a Certificate of Occupancy for any
structure on an Assessor's Parcel in Land Use Classes 1-12, a One Time Special Tax
shall be due from the Builder if the Total Tax and Assessment Obligation is expected
to be greater than 2.00 percent of the Value of the Assessor's Parcel upon which
the structure is located, in the first Fiscal Year in which such Assessor's Parcel is
considered to be Developed Property. The One Time Special Tax payment shall
be that Prepayment Amount calculated pursuant to Section 1.2 which is necessary to assure that
the Total Tax and Assessment Obligation will not exceed 2.00 percent of the Value of
an Assessor's Parcel. No One Time Special Tax Payment shall be required if the
Total Tax and Assessment Obligation of an Assessor's Parcel is expected to be less than or equal
to 2.00 percent of Value when it
becomes Developed Property.E. METHOD OF APPORTIONMENT OF
THE SPECIAL TAX Commencing with Fiscal Year 2000-01 and for each
following Fiscal Year, the Council shall levy the Special Tax until the amount of Special
Taxes equals the Special Tax Requirement. The Special Tax shall be levied each
Fiscal Year as follows:First: The Special Tax shall be levied Proportionately on
each Assessor's Parcel of Developed Property at up to 100% of the applicable Assigned Special
Tax as needed to satisfy
the Special Tax Requirement;Second: If additional monies are needed to satisfy
the Special Tax Requirement after the first step has been completed, the Spec:ial Tax shall
be levied Proportionately on each Assessor's Parcel of Undeveloped Property at up to 100%
of the Maximum Special
Tax for Undeveloped Property;Third: If additional monies are needed to satisfy
the Special Tax Requirement after the first two steps have been completed, then the levy of the
Special Tax on each Assessor's Parcel of Developed Property whose Maximum
Special Tax is determined through the application of the Backup Special Tax
shall be increased Proportionately from the Assigned Special Tax up to the Maximum Special Tax for
each
such
Fourth: If additional monies are needed to satisfy the Special Tax Requirement
after the first three steps have been completed, then the Special Tax shall be levied
Proportionately on each Assessor's Parcel of Taxable Property Owner Association
Property and Taxable Public Property at up to the Maximum Special Tax for Taxable
Property Owner Association Property or Taxable Public Property.
In addition to the Special Taxes levied based on the four steps listed above, a One-
Time Special Tax may be levied on an Assessor's Parcel if necessary to reduce the Backup
Special Tax so that the Total Tax and Assessment Obligation once it becomes Developed Property
does not exceed 2.0 percent of the Value. Notwithstanding the above, except for the
One-Time Special Tax, under no circumstances will the Special Tax levied against any Assessor's
Parcel of Residential Property for which a Certificate of Occupancy for private residential use
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
the CFD.
F. EXEMPTIONS No Special Tax shall be levied on up to 393.22 Acres of
Property Owner Association Property and Public Property. Tax-exempt status will
be irrevocably assigned by the CFD Administrator in the chronological order in which
property becomes Property Owner Association Property or Public Property., based on the following
order of priority:First: Property that was considered Public Property as of the date
of formation of
CFD No. 91-2;Second: Property that becomes Public Property subsequent
to the date of formation of CFD No. 91-2, in the chronological order
in which
such property becomes Public Property;Third: Property Owner Association Property, in
the chronological order in which
such property becomes Public Property.However, should an Assessor's Parcel no longer
be classified as Property Owner Association Property or Public Property, its tax-
exempt status will be revoked. Property Owner Association Property or Public Property that
is not exempt from Special Taxes under this section shall be subject to the levy of the
Special Tax and shall be taxed Proportionately as part of the fourth step in Section E above,
at up to 100% of the applicable Maximum Special Tax for
Taxable Property Owner
Association Property
or Taxable Public Property.G. APPEALS Any property owner claiming that the amount or
application of the Special Tax is not correct and requesting a refund may file a written notice
of appeal and refund to that effect with the CFD Administrator not later them one
calendar year after having paid the Special Tax that is disputed. The CFD
Administrator shall promptly review the appeal,and if necessary, meet with the property
owner, consider written and oral evidence regarding the amount of the Special Tax, and
decide the appeal. If the CFD Administrator's decision requires the Special Tax be modified
or changed in favor of the property owner, a cash refund shall not be made (except for the
last year of levy), but an adjustment shall be made to the next Special Tax levy.
Any dispute over the decision of the CFD Administrator shall be referred to the City Council
and the decision of the City Council shall be final. This procedure shall be
exclusive and its exhaustion by any property owner shall be a condition precedent to
any
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; provided, however, that CFD No. 91-2 may
directly bill the Special Tax, may collect Special Taxes at a different time or in a different
manner if necessary to meet its financial obligations, and may covenant to foreclose and
may actually foreclose on delinquent Assessor's Parcels as permitted by the
Act.I. PREPAYMENT OF SPECIAL
TAX The following definition applies to this Section
I:Outstanding Bonds" means all Bonds which are deemed to be
outstanding under the Fiscal Agent Agreement after the first interest and/or principal payment
date following the current Fiscal
Year.1. Prepayment in
Full Any Assessor's Parcel of Developed Property or Undeveloped Property for
which a building permit has been issued may be prepaid. The Special Tax obligation
applicable to such Assessor's Parcel in CFD No. 91-2 may be fully prepaid and the obligation
of the Assessor's Parcel to pay the Special Tax permanently satisfied as
described herein;provided that a prepayment may be made only if there are no delinquent
Special 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 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 amount. Prepayment 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 may be given to the Fiscal Agent pursuant to thl~ Fiscal
Agent Agreement.The Prepayment Amount (defined below) shall be calculated
as summarized below (capitalized terms as
defined below):Bond
Redemption Amount
Redemption Premium
Defeasance Amount Administrative Fees
and Expenses Reserve
Fund Credit Capitalized
Interest Credit
Prepayment
Amount
plus
plus
plus
lessless
equals
Total:As of the proposed date of prepayment, the Prepayment Amount (defined
below)shall be calculated as
follows:Para~raDh
No.:1. For Assessor's Parcels of Developed Property, compute the Assigned Special
Tax and Backup Special Tax applicable for the Assessor's Parcel to be prepaid.
For Assessor's Parcels of Undeveloped Property for which a building permit has
been issued, compute the Assigned Special Tax and Backup Special Tax 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.
2. (a) Divide the Assigned Special Tax computed pursuant to paragraph 1 by the
total estimated Assigned Special Taxes for the entire CFD No. 91-2 based on
the Developed Property Special Taxes which could be charged in the current
Fiscal Year on all expected development through buildout of CFD No. 91-
2, excluding any Assessor's Parcels which have been
prepaid, and b) Divide the Backup Special Tax computed pursuant to paragraph 1 by
the total estimated Backup Special Taxes at buildout for the entire CFD
No. 91-2,excluding any Assessor's Parcels which
have been prepaid.3. Multiply the larger quotient computed pursuant to paragraph 2(a) or 2(
b) by the Outstanding Bonds to compute the amount of Outstanding Bonds to
be retired and prepaid (the "
Bond Redemption Amount").4. Multiply the Bond Redemption Amount computed pursuant to paragraph
3 by the applicable redemption premium, if any, on the Outstanding Bonds
to be redeemed
the "Redemption Premium").5. Compute the amount needed to pay interest on the
Bond Redemption Amount from the first bond interest and/or principal payment date
following the current Fiscal Year until the earliest redemption date for
the Outstanding Bonds.6. Confirm that no Special Tax delinquencies apply to such
Assessor's Parcel.7. Determine the Special Taxes levied on the Assessor's Parcel in
the current Fiscal Year which have 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 from the date of prepayment until the redemption
date for the Outstanding Bonds to be redeemed
with the prepayment.9. Add the amounts computed pursuant to paragraphs 5 and 7
and subtract the amount computed pursuant to paragraph 8 (
the "Defeasance Amount").10. Verify the administrative fees and expenses of No. 91-2,
including 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. If reserve funds for the Outstanding Bonds, if any, are at or
above 100% of the reserve requirement (as defined in the Fiscal
Agent Agreement) on the prepayment date, the reserve fund credit shall equal the
expected reduction in the reserve requirement, if any, associated with the
redemption of Outstanding Bonds as a result of the prepayment (the "Reserve Fund
Credit"). No Reserve Fund Credit shall be granted if reserve funds are below
100%
of the reserve requirement.12. If any capitalized interest for the Outstanding Bonds will
not have been expended at the time of the first interest and/or principal
payment following the current Fiscal Year, a capitalized interest credit shall be
calculated
larger quotient computed pursuant to paragraph 2(a) or 2(b) by the expected
balance in the capitalized interest fund after such first interest and/or principal
payment (the "Capitalized Interest Credit").
13. The Special Tax prepayment is equal to the sum of the amounts computed
pursuant to paragraphs 3, 4, 9 and 10, less the amounts computed pursuant to
paragraphs 11 and 12 (the "Prepayment Amount").
14. From the Prepayment Amount, the amounts computed pursuant to paragraphs 3,
4, 9, 11 and 12 shall be deposited into the appropriate fund as established under
the Fiscal Agent Agreement and be used to retire Outstanding Bonds or make debt
service payments. The amount computed pursuant to paragraph 10 shall be
retained by CFD No. 91-
2.The Prepayment Amount may be sufficient to redeem other than a $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 Fiscal Agent Agreement to be
used with the next prepayment of bonds or to make debt service
payments.As a result of the payment of the current Fiscal Year's Special Tax levy as
determined under paragraph 9 (above), the CFD Administrator shall remove the current Fiscal Year'
s Special Tax 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 Special Taxes and
the release of the Special Tax lien on such Assessor's Parcel, and the obligation of
such Assessor's Parcel to pay the Special Tax shall
cease.Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless
the amount of Assigned Special Taxes that may be levied on Taxable Property within
CFD No. 91-2 both prior to and after the proposed prepayment is at least 1.1
times the maximum annual debt service on all
Outstanding Bonds.2. Prepayment
in Part The Maximum Special Tax 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 1.1;
except that a partial prepayment shall be calculated according to the
following formula:PP =PE
X F.These terms have the
following meaning:PP = the
partial prepayment P E = the Prepayment Amount calculated according to Section
1.1 F = the percent by which the owner of the Assessor's Parcel(s)
is partially prepaying the Maximum Annual
Special Tax.The owner of an Assessor's Parcel who desires to partially prepay the
Maximum Special Tax shall notify the CFD Administrator of (i) such owner's intent to partially
prepay the Maximum Special Tax, (ii) the percentage by which the Maximum Special Tax
shall be prepaid, and (iii) the company or agency that will be acting as the escrow
agent, if applicable. The CFD Administrator shall provide the owner with a statement
of
amount required for the partial prepayment of the Maximum Special Tax 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 City shall (i) distribute
the funds remitted to it according to Paragraph 14 of Section 1.1., and (ii) indicate in the
records of CFD No. 91-2 that there has been a partial prepayment of the
Maximum Special Tax and that a portion of the Maximum Special Tax equal to the
outstanding percentage (1.00 - F) of the remaining Maximum Special Tax shall continue to be
authorized to be levied on such Assessor's Parcel pursuant to Section E.
J. TERM OF SPECIAL TAX
Special Taxes used to pay for either or both the acquisition and construction of any public
facilities for CFD No. 91-2 (through the issuance of Bonds or otherwise) and levied on
any Assess.or's Parcel shall not be levied after the thirty-fifth (35th) Fiscal Year in
which such Assessor's Parcel was taxed as Developed Property. After such thirty-fifth (
35th) Fiscal Year,and the collection of any delinquent Special Taxes, penalties and interest,
the CFD Administrator shall cause a document substantially in the form required by the Act
evidencing such termination of the levy and collection to be recorded in the office ofthe
recorder
EXHIBITB
IMPROVEMENT AREA NO.1 OF
CITY OF ORANGE
COMMUNITY FACILITIES DISTRICT NO. 91-
2 SERRANO HEIGHTS PUBLIC
IMPROVEMENTS)OFFICIAL
BALLOT SPECIAL ELECTION REGARDING COMBINING
OF IMPROVEMENT AREAS AND ALTJi:RATION OF RATE
AND METHOD OF APPORTIONMENT OF SPECIAL
TAXES,FACILITIES TO BE FINANCED, BONDED
INDEBTEDNESS LIMIT AND ANNUAL APPROPRIATIONS LIMIT FOR
THE
DISTRICT February 22,
2000)This ballot is for a special, landowner election. You must return this ballot in
the enclos,ed postage paid envelope to the office of the City Clerk of the City of Orange no later
than immediately after the adoption of the resolution of the City Council of the City calling
said election, either by mail or in person. The City Clerk's office is located at 300 East
Chapman Avenue, Orange, California
92666.To vote, mark a cross (X) on the voting line after the word "YES" or after the word "
NO"for each of the two ballot measures. All marks otherwise made are forbidden. All
distinguishing marks are forbidden and make the ballot
void.If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City
of Orangc~ and obtain
another.BALLOT MEASURE A: Shall Improvement Area No. 1
Yes:and Improvement Area No. 2 within the City of
Orange Community Facilities District No. 91-2 (Serrano
Heights Public Improvements) (the "District") be combined and
thereby No:eliminated as distinct areas, such that said
improvement areas shall hereafter constitute undivided portions of
the District,without
separate designation?BALLOT MEASURE B: Shall the rate and method
of Yes:apportionment of the special taxes to be levied within the
City of Orang(~ Community Facilities District No. 91-
2 (Serrano Heights Public Improvements) (the "District"), the facilities to
be financed No:by the District and the bonded indebtedness
limit and annual appropriations limit for the District be as
described in the Resolution of the City Council of the City
of Orange, adopted February 22, 2000, entitled "A Resolution of the
City Council of the City of Orange Calling
Special Elections Regarding Combining of Improvement Areas Within the
City of Orange Community Facilities District No. 91-
2 (Serrano Heights Public Improvements), and Alteration of the
Rate and Method of Apportionment of Special Taxes,
the Authorized Facilities, and the Bonded Indebtedness and
Appropriations
By execution in the space provided below, you also indicate your waiver of the time limit
pertaining to the conduct of the election and any requirement for analysis and arguments with
respect to the ballot measure, as such waivers are described and permitted by Sections 53326(a)
and 53327(b) of the California Government Code.
Number of Votes for
Improvement Area No.1 of
the District:
Orange County Assessor's
parcel numbers of land
owned within Improvement
Area No.1 of the District:
Property Owner:
By:
Its:
B-
IMPROVEMENT
AREA NO.2 OF CITY
OF ORANGE COMMUNITY
FACILITIES DISTRICT NO. 91-2
SERRANO HEIGHTS PUBLIC IMPROVEMENTS)
OFFICIAL BALLOT
SPECIAL ELECTION REGARDING COMBINING OF
IMPROVEMENT AREAS AND ALT}:RATION OF RATE AND
METHOD OF APPORTIONMENT OF SPECIAL TAXES,
FACILITIES TO BE FINANCED, BONDED INDEBTEDNESS
LIMIT AND ANNUAL APPROPRIATIONS LIMIT FOR THE
DISTRICT
February 22, 2000)
This ballot is for a special, landowner election. You must return this ballot in the
enclosed postage paid envelope to the office of the City Clerk of the City of Orange no later than
immediately after the adoption of the resolution of the City Council of the City calling said
election, either by mail or in person. The City Clerk's office is located at 300 East Chapman
A venue, Orange, California 92666.
To vote, mark a cross (X) on the voting line after the word "YES" or after the word "NO"
for each of the two ballot measures. All marks otherwise made are forbidden. All distinguishing
marks are forbidden and make the ballot void.
If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of
Orange;: and obtain another.
BALLOT MEASURE C: Shall Improvement Area No.1
and Improvement Area No. 2 within the City of Orange Yes:
Community Facilities District No. 91-2 (Serrano Heights
Public Improvements) (the "District") be combined and
thereby eliminated as distinct areas, such that said improvement areas
No:shall hereafter constitute undivided portions of the
District,without separate
designation?BALLOT MEASURE D: Shall the rate and method
of apportionment of the special taxes to be levied within the City
of Orange Community Facilities District No. 91-2 (
Serrano Heights Public Improvements) (the "District"), the facilities to be
financed Yes:by the District and the bonded indebtedness limit
and annual appropriations limit for the District be as described
in the Resolution of the City Council of the City of Orange,
adopted No:February 22, 2000, entitled "A Resolution of the City
Council of the City of Orange Calling Special
Elections Regarding Combining of Improvement Areas Within the City
of Orange Community Facilities District No. 91-2 (
Serrano Heights Public Improvements), and Alteration of the Rate
and :\1ethod of Apportionment of Special Taxes, the
Authorized Facilities, and the Bonded Indebtedness and Appropriations
Limits
for
By execution in the space provided below, you also indicate your waiver of the time limit
pertaining to the conduct of the election and any requirement for analysis and arguments with
respect to the ballot measure, as such waivers are described and permitted by Sections 53326(a)
and 53327(b) of the California Government Code.
Number of Votes for
Improvement Area No.2 of
the District:
Orange County Assessor's
parcel numbers of land
owned within Improvement
Area No.2 of the District:
Property Owner:
By:
Its:
B-