RES-9220 Determining Improvement Areas of Community Facilities District No. 92-1 are Lawfully CombinedRESOLUTION NO. 9220
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ORANGE DETERMINING THAT THE
IMPROVEMENT AREAS WITHIN THE CITY OF
ORANG}: COMMUNITY FACILITIES DISTRICT NO. 91-
2 SERRANO HEIGHTS PUBLIC IMPROVEMENTS)
ARE LAWFULLY COMBINED, DETERMINING THAT
THE ALTERATIONS OF THE RATE AND METHOD
OF APPORTIONMENT OF SPECIAL T AXES,
THE FACILITIES TO BE FINANCED BY AND THE
BONDED INDEBTEDNESS LIMIT AND THE
ANNUAL APPROPRIATIONS LIMIT FOR THE DISTRICT
HAVE BEEN LA WFULL Y AUTHORIZED, AND
DIRECTING RECORDING OF THIRD AMENDMENT TO NOTICE
OF SPECIAl, TAX
LIEN WHEREAS, in proceedings heretofore conducted by this City Council pursuant to
the Mello-Roos Community Facilities Act of 1982, as amended (the "Act"), this City
Council, on February 22,2000, adopted a resolution 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 ofthe Rate and Method of Apportionment of Special Taxes,
the Authorized Facilities,and the Bonded Indebtedness and Appropriations Limits for the
District" (the "Resolution Calling Election"), calling for special elections of the qualified
electors within Improvement Area No. 1 and Improvement Area No. 2 of the City of Orange
Community Facilities District No. 91-2 (Serrano Heights
Public Improvements) (the "District");WHEREAS, pursuant to the terms of the Resolution
Calling Election, said special elections were held on this date, and the City Clerk has on file a
Canvass and Statement of Results of Election, a copy of which is attached hereto
as Attachment A; and WHEREAS, this City Council has reviewed and hereby
approves said Canvass; and WHEREAS, a revised rate and method of apportionment of special
taxes for the District in the f,orm of Exhibit A hereto (the "Revised Rate and 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.NOW, THEREFORE, THE CITY COUNCIL OF THE
CITY OF ORANGE DOES
HEREBY RESOLVE AS FOLLOWS:Section 1. The issues presented at said special elections were
as described in the Resolu60n Calling Election, the provisions of which are, by
this reference, incorporated herein.Section 2. Pursuant to said Canvass on file with the City Clerk,
eachofthepropositions presentc:::d at said special elections were approved by the qualified
electors of each of Improvement Area No.1 of the District and Improvement Area No.2 of
the District by more than two-thirds of the votes
Section 3. This City Council hereby determines that the combining of improvement
areas within the District (and thereby eliminated separate improvement areas in the District) is
lawfully authorized, and the alterations of the rate and method of apportionment of the special
taxes to be levied within, the facilities authorized to be financed by and the bonded indebtedness
limit and annual appropriations limit for the District are lawfully authorized, all of which shall be
as set forth in the Resolution Calling Election.
Section 4. The City Clerk is hereby directed to execute and cause to be recorded in the
office of the County Recorder of the County of Orange an amendment to the notice of special tax
lien recorded with respect to the District, in substantially the form attached hereto as Attachment
B, said recording to occur no later than fifteen days following adoption by this City Council of
this Resolution.
Section 5. It is hereby found that all prior proceedings and actions taken by this City
Council with respect to the District and the former Improvement Area No. 1 and Improvement
Area No.2 thereof were valid and in conformity with the Act.
Section 6. This Resolution shall take effect immediately upon its adoption.
ADOPTED this 22nd day of February, 2000.
ATTEST:
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: COUNCIL MEMBERS: MURPHY, SLATER, COONTZ, SPURGEON
NOES: COUNCIL MEMBERS: ALVAREZ
ABSENT: COUNCIL MEMBERS: NONE
ABST AIN: COUNCIL MEMBERS: NONE
2
ATTACHMENT A
CANVASS AND STATEMENT OF RESULTS OF ELECTION
IMPROVEMENT AREA NO.1 AND IMPROVEMENT AREA NO.2
OF CITY OF ORANGE
COMMUNITY FACILITIES DISTRICT NO. 91-
2 SERRANO HEIGHTS PUBLIC
IMPROVEMENTS)I hereby certify that on February 22,2000, I canvassed the returns of the elections held
on February 22, 2000, in Improvement Area No. 1 of the City of Orange Community
Facilities Distriet No. 91-2 (Serrano Heights Public Improvements) and the total number of ballots
cast in said Improvement Area and the total number of votes cast for and against
the respective measures are as follows and the totals as shown for and against the respective measures
are full,true
arld correct:BALLOT MEASURE
A: Shall Improvement Area No.1
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 eliminated as distinct areas,
such that said improvement
areas shall hereafter constitute undivided
portions of the Distriet,
without separate designation?BALLOT MEASURE B:
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 ImJ?
rovements) (the "District"), the faCIlities to be financed
by the District and the bonded
indebtedness limit and annual appropriations limit for
the District be as descnbed 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
Callin,~ Special Elections Regarding Combming
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"?Qualified Landowner
Votes Votes Cast YES NO
Lid
M
M
J:
L Qualified Landowner
Votes Votes Cast
YES
I hereby certify that on February 22, 2000, I canvassed the returns of the elections held on
February 22, 2000, in Improvement Area No. 2 of the City of Orange Community Facilities
District No. 91-2 (Serrano Heights Public Improvements) and the total number of ballots cast
in said Improvement Area and the total number of votes cast for and against the
respective measures are as follows and the totals as shown for and against the respective measures are
full,true and
correct:BALLOT MEASURE C:
Shall Improvement Area No.1 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 eliminated as distinct areas, such
that said improvement areas
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 by
the District and the bonded indebtedness
limit and annual appropriations limit for the
District be as described in the Resolution
ofthe City Counc:il 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
Limits
for
the
District"?
Qualified Landowner Vot~
Votes Cast YES NO3c,.)3~
3
o
3C,
3
Qualified Landowner Vot~
Votes Cast YES NO
3~~3 3~3 IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND
this 22nd
day
of
February, 2000.11~B~City Clerk
he
0:
RECORDING
REQUESTED BY AND AFTER
RECORDATION RETURN TO:City
Clerk City
of Orange 300
E. Chapman Avenue Orange,
CA 92866 Recorded
in the County of Orange, California Gary
L Granville, Clerk/Recorder 1~
lmnIMI~nimmi r~0:::96982 10: 36AM 02/24/00 004
00119730 115 207.00 0.00 0.00 0.00 023
17 0 0.00 0.00 0.
00 0.00 Doc
Types: 023 CITY
OF ORANGE AND
IMPROVEMENT COMMUNITY FACILITIES DISTRICT NO. 91-2
SERRANO HEIGHTS PUBLIC IMPROVEMENTS)
AND FORMER IMPROVEMENT AREA NO.1 AND
IMPROVEMENT AREA NO.2 THEREOF
THIRD AMENDMENT TO
NOTICE OF SPECIAL TAX LIEN
l~.
A
1(
Pursuant to the requirements of Section 3114.5 of the California Streets and Highways
Code and Section 53328.3 of the Mello-Roos Community Facilities Act of 1982, as
amended,California Government Code Sections 53311 et. seq. (the "Act"), a Notice of Special Tax
Lien with respect to the City of Orange Community Facilities District No. 91-2 (
Serrano Heights Public Improvements) (the "District") was recorded in the Office of the County Recorder
of the County of Orange on January 17, 1992, as Instrument No. 92-030991, a
First Amendment to Notice of Special Tax Lien was recorded in the Office of the County Recorder of
the County of Orange on November 21, 1995, as Instrument No. 19950516221, and a
Second Amendment to Notice of Special Tax Lien was recorded in the Office of the County Recorder of
the County of Orange on June 5, 1996, as
Instrument No. 19960280613.Pursuant to proceedings conducted in accordance with the Act, the
City Council, acting as the legislative body for the District, has combined the areas within the
District known as Improvement Area No.1 of the City of Orange Community Facilities District
No. 91-2 (Serrano Heights Public Improvements)" and "Improvement Area No.2 of the
City of Orange Community Facilities District No. 91-2 (Serrano Heights Public
Improvements)" and said improvement areas have therefore been eliminated and now constitute undivided
portions of the District, without separate designation, for all purposes of the District. The
boundaries of the combined District are as set forth in the Second Amended Map of the Boundaries
of City of Orange Community Facilities District No. 91-2 (Serrano Heights
Public Improvements), recorded on February 9,2000, as Instrument No. 20000074428 in the Office of the
County Recorder for the County of Orange, and filed in Book 78 at Page 50 in
Maps of Assessment and Community Facilities Districts in the Office of the County
Recorder of the County of Orange.The City Council, acting as the legislative body for the
District, has also provided for the following: (a) the alteration of the rate and method of
apportionment of special taxes for the District to be as specified in the Rate and Method of
Apportionment for the City of Orange Commwlity Facilities District No. 91-2 (
Serrano Heights Public Improvements) set forth in Exhibit A attached hereto and by this reference made a
part hereof, (b) the alteration of the facilities to be financed by the District to be as set forth in
Exhibit B attached hereto and by this reference made a part hereof, (c) the alteration of
the annual appropriations limit for the District to be $5,000,000, and (d) the alteration of the bonded
indebtedness limit for
the
Pursuant to the requirements of Section 3117.5 of the California Streets and Highways
Code and Section 53338(c) of the Act, the undersigned City Clerk of the City of Orange, County
of Orange, State of California, hereby gives notice of the foregoing and of the material in the
Exhibits attached hereto, and that the lien of the special taxes in the District shall continue in
effect lmtil the special taxes are prepaid or satisfied, as provided in the Act. Conditions under
which the obligation to pay the special tax may be prepaid and permanently satisfied and the lien
of the special tax canceled are as set forth in Exhibit A hereto.
The names of the owners and the assessor's tax parcel numbers of the real property
included within the District and not exempt from the special tax are as set forth in Exhibit C
attached hereto and hereby made a part hereof.
Reference is made to the boundary map of the District recorded at Book 57 of Maps of
Assessment and Community Facilities Districts at Pages 44 through 47, in the office of the
County Recorder for the County of Orange, State of California, as amended by the first amended
boundary map of the District recorded at Book 72 of Maps of Assessment and Community
Facilities Districts at Page 23, in the office of the County Recorder for the County of Orange,
State of California, and as further amended by the second amended boundary map of the District
record~:d at Book 78 of Maps of Assessment and Community Facilities Districts at page 50, in
the offlce of the County Recorder for the County of Orange, State of California, which map, as
so amended, is the boundary map of the District.
For further information concerning the current and estimated future tax liability of owners
or purchasers of real property subject to this special tax lien, interested persons should contact
the Finance Director of the City of Orange, 300 East Chapman Avenue, Orange, California
92666, telephone number (714) 744-
2234.Dated: c:? - 43 -'00 ,2000 B/?
City
2
EXHIBIT A
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 foreclosure 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 tiscal 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.Fiscal Year" means the period starting July 1 and ending on
the
following June 30.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, 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 levy
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
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 Special Tax for CFD No. 91-2, general obligation debt of
the City or any other public agency, special assessments, :md 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 CATEGORIES 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 assigned
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
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 Developed Property
For Fiscal Year 2000-
01 Community Facilities District No.
91-2
AssIgned SpecIal Description Residential FloorAreaTax
Land Use Class Per
unit! Acre 1 Single Family Detached Property > 3,599 sq. ft. $3,304.80
per Unit 2 Single Family Detached Property 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 - 2,999 sq. 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 8 Single 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 ~ount 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%) of the 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 than 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
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 legal action by such owner.
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, emd 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 pelmanently 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 the 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
Parai!raph 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
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 flmds 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 by multiplying the
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 maybe::: 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
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 Ll;
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 the 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 protially 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 Assessor'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
of the recorder of
the
EXHIBIT B
FACILITIES TO BE FINANCED BY
CITY OF ORANGE
COMMUNITY FACILITIES DISTRICT NO. 91-
2 SERRANO HEIGHTS PUBLIC
IMPROVEMENTS)1. Serrano Avenue and Related Improvements: Construction of Serrano Avenue
within and in the vicinity of the District. Construction of mainline water, sanitary sewer and
storm drain improvements, dry utilities, equestrian trails, landscaping and riparian
revegetation adjacent and/or in the vicinity of such road
construction.The foregoing shall include costs related to civil and soils engineering,
construction management, fees and permits, mobilization, site preparation (including removal of
existing improvements), grading, curb, gutter, sidewalk, paving, slope and erosion control, street
lights,signalization and signage, striping, walls and fences, grading of pump station site and
provision of site improvements including water lines and access
routes.2. West Loop Road, Park and Related Improvements: Construction of a loop road off
of Serrano Avenue within the boundaries of the District. Construction of mainline water,
sanitary sewer, storm drain improvements; and landscaping in public rights of way. Grading ofland for
a park within or in the vicinity of the District and other site preparation costs, and
construction thereon of related
improvements.The foregoing shall include costs related to civil and soils engineering,
construction management, fees and permits, mobilization, sitepre:::paration (including removal of
existing improvements), grading, curb, gutter, sidewalk, paving, slope and erosion control, street
lights,signalization and signage and
striping.3. Water Reservoir and Related Improvements: Grading of land for a water
reservoir within or in the vicinity of the District and other site preparation costs, and construction
thereon of related improvements including but not limited to any water lines incident to such
reservoir.The foregoing shall include costs related to civil and soils engineering,
construction management, fees and permits, mobilization, site pn~paration (including removal of
existing improvements), grading, curb, gutter, sidewalk, paving, slope and erosion control, street
lights,signalization and signage, striping, walls and
fences.4. East Collector Road and Related Improvements: Construction of a collector road
off of Serrano Avenue within and in the vicinity of the Improvement Area. Construction of
mainline water, dry utilities, sanitary sewer, storm drain improvements; and landscaping in public rights
of
way.The foregoing shall include costs related to civil and soils engineering,
construction management, fees and permits, mobilization, site preparation (including removal of
existing improvements), grading, curb, gutter, sidewalk, paving, slope and erosion control, street
lights,signalization and signage, striping, walls and
fences.5. Transportation System Improvements: Acquisition, construction and/or installation
of the following improvements, including any costs related to mobilization, site preparation,
site acquisition, and
grading:
a) Arterial Street Improvements: Nohl Ranch Road - Santiago to E.C.L.;Santiago
Canyon Road - Hewes to Jamboree; and Hewes - Bond to Santiago Canyon Road.b) Freeway
Ramp
and Bridge Improvements: Canon Street Bridge.c) Signalization: Santiago
Canyon/Orange Park; and SerranoN ellowstone.d) Other Transportation
System Improvements: Street Scan - Audio Visual Surveillance System; Bus/Parking
Bays; Signal SystemMaster - Increase Capacity; and other Operational Improvements.6. Fire
Protection Facilities Improvements:
Acquisition, construction and/or installation of a site::: for and
construction of anew fire station in the general vicinity of the District, including any costs related to mobilization,
site preparation, site acquisition, and grading:7. Transportation System Improvement, Foothill/
Eastern Transportation Corrider and FireFacility Fees. Payment of
any fee obligation related to fire facility fees or transportation system improvement fees imposed by
the City relative to new development in the District, and any transportation system fees imposed
on new development in the District for improvements to the Foothill/Eastern Transportation Corrider.
The Facilities shall be constructed,
whether or not acquired in their completed states,pursuant to plans and specifications
approved by the City (or other governmental entity that will own and operate the same)
and the officials thereof, and, as to items 1,2,3 and 4 above, shall be generally as described in the
report of Fuscoe Engineering, Inc., as revised, on file with the City Director of Public Works.B-
2
EXHIBITC
PROPERTY OWNERS AND ASSESSOR'S PARCEL NUMBERS
CITY
OF ORANGE COMMUNITY
FACILITIES DISTRICT NO. 91-2
SERRANO HEIGHTS PUBLIC IMPROVEMENTS)
Names and Addresses of Property Owners
Serrano Heights 1400, LLC
Serrano Heights 1400, LLC
Serrano Heights 1400, LLC
Serrano Heights East, LLC
Serrano Heights 1400, LLC
Serrano Heights 1400, LLC
Centex Homes
Kaufman and Broad
Serrano Heights 1400, LLC
Serrano Heights East, LLC
Serrano Heights 1400, LLC
Serrano heights East, LLC
Serrano Heights East, LLC
Serrano Heights 1400, LLC
Serrano Heights 1400, LLC
Assessor's Parcel Nos.
085-
521-
93
085-
531-
34 085-551-
49 085-551-
56 085-551-
57
085-
551-
58 (
Portion
of)
085-
551-