RES-8607 Public Improvements Community Facilities District No. 91-2 Serrano HeightsRESOLUTION NO. 8607
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ORANGE
DESIGNATING IMPROVEMENT AREAS WITHIN THE CITY OF
ORANGE COMMUNITY FACILITIES DISTRICT NO. 91-2 (
SERRANO HEIGHTS PUBLIC IMPROVEMENTS), OF CONSIDERATION
TO ALTER THE RATE AND METHOD OF APPORTIONMENT
OF SPECIAL TAXES AND THE AUTHORIZED FACILITIES FOR
SUCH AREAS AND OTHERWISE AMENDING PRIOR RESOLUTIONS
WITH RESPECT TO BONDED INDEBTEDNESS AND
APPROPRIATIONS LIMITS FOR SUCH
AREAS WHEREAS, on November 12, 1991, the City Council of the City of Orange adopted (
a)Resolution No. 7898 of the City of Orange (the "City") stating its intention to form the City
of Orange Community Facilities District No. 91-2 (Serrano Heights Public
Improvements) (the District"), pursuant to the Mello-Roos Community Facilities Act of 1982,
as amended (the Act"), to finance certain facilities, and (b) Resolution No. 7899 of the City
stating its intention to issue bonds for the District to finance
such facilities; and WHEREAS, on December 17, 1991, the City Council adopted (a) Resolution
No. 7918 of the City establishing the District, authorizing the levy of a special tax within
the District and setting an appropriations limit for the District, and (b) Resolution No. 7919
of the City determining the necessity to incur bonded indebtedness within
the District; and WHEREAS, subsequent to the formation of the District, the sole
landowner within the District requested that the rate and method of apportionment of the special
taxes for the District
be altered; and WHEREAS, on November 14, 1995, the City Council adopted Resolution
No. 8545 of the City entitled "A Resolution of the City Council of the City of
Orange Determining That Alteration of the Rate and Method of Apportionment of Special Taxes for
City of Orange Community Facilities District No. 91-2 (Serrano Heights
Public Improvements) is Lawfully Authorized and Directing Recording of Amendment to Notice of
Special Tax Lien," which resolution determined that the alteration ofthe rate and method
of apportionment of the special taxes for the District, as described therein,
was lawfully authorized; and WHEREAS, City staff has now received a request from the sole owner
of the property in the District to designate improvement areas within the District, to alter the
rate and method of apportionment of the special taxes for the District as it applies to
such improvement areas, to alter the authorized improvements for the District as they apply
to such improvement areas,and to amend the bonded indebtedness and appropriations limits for the
District as they apply to such improvement areas, and the City Council desires to
acknowledge receipt of said request, to designate improvement areas within the District, and
to commence proceedings to alter the rate and method of apportionment of the special tax authorized
such improvement areas, to alter the authorized improvements for such improvement areas and
to amend the bonded indebtedness and appropriations limits for such improvement areas.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ORANGE DOES
HEREBY RESOLVE AS FOLLOWS:
Section 1. Receipt by the City of a request of the owner of all of the property in the
District to designate improvement areas within the District, to alter the rate and method of
apportionment of the special taxes for such improvement areas, to alter the authorized
improvements for such improvement areas and to amend the bonded indebtedness and
appropriations limits for such improvement areas, is hereby acknowledged.
Section 2. The City Council hereby designates the area specified as the "West Parcel" on
the map of the District attached hereto as Exhibit A as "Improvement Area No.1 of the City of
Orange Community Facilities District No. 91-2 (Serrano Heights Public Improvements)," and
the area specified as the "East Parcel" on said map as "Improvement Area No.2 of the City
of Orange Community Facilities District No. 91-2 (Serrano Heights Public
Improvements)." Said Improvement Area No.1 is hereinafter referred to as "Area 1 of CFD 91-
2" and said Improvement Area No.2 is hereinafter referred to as "Area 2 of CFD 91-2."
The City Clerk is hereby directed to record or cause to be recorded in the office of the
County Recorder a first amended boundary map for the District
delineating such improvement areas.Section 3. The City Council hereby finds and determines
that public convenience and necessity require that the rate and method of apportionment of the special
tax authorized to be levied within Area 1 of CFD 91-2 and the public facilities which should
be financed by Area 1 of CFD 91-2, be altered. The name of the area is "Improvement Area
No.1 of the City of Orange Community Facilities District No. 91-
2 (Serrano Heights Public Improvements," and the territory included in the area is that territory designated as the "
West Parcel" on the map of
the District attached hereto as Exhibit A.Section 4. The City Council hereby
finds and determines that public convenience and necessity require that the rate and method of apportionment
of the special tax authorized to be levied within Area 2 of CFD 91-2 and the public
facilities which should be financed by Area 2 of CFD 91-2, be altered. The name of the area
is "Improvement Area No.2 of the City of Orange Community Facilities
District No. 91-2 (Serrano Heights Public Improvements," and the territory included in the area is that territory
designated as the "East Parcel" on
the map of the District attached hereto as Exhibit A.Section 5. The rate andmethodofapportionmentofthespecialtaxamongtheparcelsofrealpropertywithinArea1ofCFD
91-2 is proposed to be amended and restated as set forth in Exhibit
B attached hereto and by this reference incorporated herein. The conditions under which the obligationtopaythespecifiedspecialtaxmaybeprepaidandpermanentlysatisfiedarespecifiedin
said Exhibit B. Such amended and restated rate and method of apportionment is in sufficient detail
to allow each landowner within Area 1 of CFD 91-
2 to estimate the maximum amount such owner will have to pay.Section 6. TherateandmethodofapportionmentofthespecialtaxamongtheparcelsofrealpropertywithinArea2
of CFD 91-2 is proposed to be amended and restated as set forth
in Exhibit C attached hereto and by this reference incorporated herein. The conditions under whichtheobligationtopaythespecifiedspecialtaxmaybeprepaidandpermanentlysatisfiedare
specified in said Exhibit C. Such amended and restated rate and method of apportionment is in
sufficient detail to allow each landowner within Area 2 of
CFD
IL..
Section 7. The facilities proposed to be financed by Area 1 of CFD 91-2 are
proposed to be changed to those facilities set forth in Exhibit D attached hereto and by this
reference incorporated
herein.Section 8. The facilities proposed to be financed by Area 2 of CFD 91-2
are proposed to be changed to those facilities set forth in Exhibit E attached hereto and by
this reference
incorporated herein.Section 9. The appropriations limit for the District as set forth in City
Resolution Nos.7898 and 7918, and the bonded indebtedness limit for the District, as set forth
in City Resolution Nos. 7899 and 7919, are hereby amended, subject to the approval of at
least two-thirds of the qualified electors of the District, to be as follows: (a) the
annual appropriations limit for Area 1 of CFD 91-2 is $14,000,000 and the bonded indebtedness limit for
Area 1 of CFD 91-2 is $14,000,000, and (b) the annual appropriations limit for Area 2
of CFD 91-2 is 17,000,000 and the bonded indebtedness limit for Area 2 of CFD
91-2 is $17,000,000.Section 10. Tuesday, May 14, 1996, at 7:00 p.m., in the
regular meeting place of the City Council, Council Chambers, City Hall, 300 East
Chapman Avenue, Orange, California, be. and the same are hereby appointed and fixed as the time and
place when and where the City Council, as legislative body for the District, will conduct
a public hearing on the proposed alterations and amendments described in the preceding Sections
5, 6, 7, 8 and 9.Section 11. The City Clerk is hereby directed to cause notice
of said public hearing to be given by publication one time in a newspaper published in
the area of the District. The publication of said notice shall be completed at least seven days
before the date herein set for said hearing. Said notice shall be in
the form of Exhibit F hereto.Section 12. The officers and employees of the
City are hereby authorized and directed to take all actions and do all things which they, or any
of them, may deem necessary or desirable to accomplish the purposes of this Resolution
and
not inconsistent with the provisions hereof.Section 13. This Resolution shall
take effect immediately upon its adoption.ADOPTED
this
9th day of April, 1996.r.....
Mayor of
the
City 01...
range
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 9th day of April, 1996, by
the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
25027-03,
12131 04/
01/'.COUNCIL MEMBERS: MURPHY, BARRERA, COONTZ, SPURGEON,
SLATER COUNCIL MEMBERS:
NONE COUNCIL MEMBERS:
NONE COUNCIL MEMBERS:
NONE1..J';,-
1A~ (
J ~/'A-?-
L-City Clerk~he City of
Orange
EXHIBIT
A MAP
INDICATING IMPROVEMENT AREAS WITHIN an
OF ORANGE COMMUNITY
FAQLITIES DISTRIcr NO. 91-2
SERRANO HEIGHTS PUBLIC IM:PROVEMENTS)
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EXIDBIT B
RATE AND METHOD OF APPORTIONMENT FOR
IMPROVEMENT AREA NO.1
OF THE CITY OF ORANGE
COMMUNITY FACILITIES DISTRICT NO. 91-
2 SERRANO HEIGHTS PUBLIC
IMPROVEMENTS)A Special Tax shall be levied and collected in Improvement Area No. 1 of the City of
Orange Community Facilities District No. 91-2 (Serrano Heights Public Improvements)
each Fiscal Year, in an amount determined by the Finance Director of the City through the
application of the procedures described below. All of the real property in Improvement Area No. 1
of 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 used herein shall have
the following meanings:Act" means the Mello-Roos Community Facilities Act of
1982, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code
of
the State of California.Admini..u-ative Expenses" means any or all of the following:
the fees and expenses of any fiscal agent (including any fees or expenses of its counsel)
employed by the City in connection with any bonds of Improvement Area No.1 of
CFD No. 91-2, the expenses of the City in carrying out its duties under any
fiscal agent agreement with respect to such bonds, including, but not limited to, the levy and
collection of the Special Tax, any City charges and including the fees and expenses of its
counsel, an allocable share of the salaries of City staff directly related thereto and
a proportionate amount of City general administrative overhead related thereto, and all other costs
and expenses of the City or any fiscal agent incurred in connection with the
discharge of their respective duties under any fiscal agent agreement with respect to such bonds and, in the
case of the City, in any way related to the administration of Improvement Area
No.1 of CFD No. 91-2.Apartment" means any Parcel of Residential
Property that consists of a building or buildings comprised of attached residential
units available for rental, but not purchase,by
the general public and under common management.Assessor's Parcel" or "Parcel" means a lot
or parcel with a parcel number
Improvement Area No. 1
CFD No. 91-
2 Page
2 Assigned Special Tax" means the Special Tax described in Section C that applies
to Parcels of Developed
Property.Backup Special Tax" means that Special Tax described in Section C that may
apply to Parcels of Developed Property and ImproYed
Property.CFD No. 91-2" means Community Facilities District No. 91-2 (
Serrano Heights Public Improvements) established by the City under the Act, including
any annexations thereto.City" means the City
of Orange, California.Condominium" means a unit meeting the statutory deftnition
of a condominium contained in California Civil
Code, Section 1351.Council" means the City Council of the City, acting as the
legislative body of Improvement Area No.1 of
CFD No. 91-2.County" means the
County of Orange, California.Developed Property" means for any Fiscal Year, any Parcel
of Taxable Property for which a building permit was issued, as of March 1 of
the prior Fiscal Year.Development Projection" means an annual projection of the
number of residential units and non-residential acres expected to be developed within
Improvement Area No.1 of CFD No. 91-2. The Development Projection
for each Planning Area in Improvement Area No. 1 of CFD No. 91-2 shall include (i)
the number and square footage of existing units in each Land Use Class and
the number of existing acres of Non-Residential Property, (ii) the number and acreage
of Parcels of existing Improved Property, and (ill)a projection of all future
development, including the acreage, projected number of units in each Land
Use Class, projected building square footage, projected non-residential acres, and an absorption
schedule for all future development in Improvement Area No.1 of CFD No. 91-2. The
Development Projection shall be dated as of March 1 and prepared each Fiscal Year, at
the discretion of the Finance
Director, by either the Master Developer or an independent consultant.Final Residential
Subdivision" means a subdivision of property by recordation of a ftnal map, parcel map, or
lot line adjustment, approved by the City pursuant to the Subdivision Map
Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan
pursuant to California Civil Code 1352 that creates individual lots
for which building permits may be issued without further subdivision.Finance Director" means the official
of the City who is the chief fmancial officer or other comparable officer
of the City or designee thereof responsible for determining the Special Tax Requirement and
Improvement Area No. 1
CFD No. 91-
2 Page
3 Fiscal Year" means the period starting any July 1 and ending on the following June
30.Flat" means any building of Residential Property that consists of attached units,
other than Apartments, in which more than fifty percent of the individual units are
stacked _above or below other units in the
structure.Home Owner Association Property" means, for any Fiscal Year, any real
property within the boundaries of Improvement Area No. 1 of CFD No. 91-2 that is
owned by,or irrevocably offered for dedication to, a home owner's association on or
before March 1 of the previous Fiscal Year; provided however, that real property that
has been irrevocably dedicated will only be included if a copy of the offer is provided
to the Finance Director on or before
March 1.Improved Property" means, for any Fiscal Year, any Parcel of Taxable
Property that is within a Final Residential Subdivision as of March 1 of the previous Fiscal
Year, but that is not
Developed Property.Improvement Area No.1" means that area designated as Improvement Area No.
1 on the boundary map of CFD
No. 91-2.Land Use Class" or "Class" means any of the classes listed in
Table I below.Master Developer" means the owner or owners of the
predominant amount of Undeveloped Property in Improvement Area No.1 of
CFD No. 91-2.Maximum Special Tax" means the maximum Special
Tax, determined in accordance with Section C, that can be levied in Improvement Area No.1 of CFD
No. 91-2 in any Fiscal Year on Improved Property, Undeveloped Property, and
each Land Use Class
of Developed Property, as applicable.Non-Residential Property" means any
Parcel of
Developed Property other than Residential Property.Planning Areas" means those areas shown on
Exhibit A. Minor adjustments in the boundaries of the planning areas may be
made to accommodate adjustments in the tentative maps prepared for these areas. (Only Planning Areas 1, 2,
3, 4, and 10 are in Improvement Area
No.1 of CFD No. 91-2).Proportionately" shall mean for Deyeloped Property
that the ratio of the actual Special Tax levy to the Assigned Special Tax is equal
for all Assessor's Parcels of Deyeloped Property. "Proportionately" shall mean for Improved
Property that the ratio of the actual Special Tax Levy to the Maximum Special Tax is
equal for all Assessor's Parcels of Improved Property. "Proportionately"
shall mean for Undeveloped Property that the ratio of the actual Special Tax levy
to the Maximum Special Tax for Undeveloped Property is equal for
Improvement Area
No. 1 CFD No.
91-2 Page
4 Public
Property" means property within the boundaries of Improvement Area No. 1 of
CFD No. 91-2 owned by, or irrevocably offered for dedication to, the federal
government, State of California, or other public agency or easements for the exclusive
use of a public utility provider.
Residential Property" means any Parcel of Developed Property for which a building
permit was issued for purposes of constructing a residential dwelling unit(s).
Single Family" means any Parcel of Residential Property other than Apartments, Flats,
and Town Homes.
Special Tax" means the Special Tax that may be levied by CFD No. 91-2 each
Fiscal Year to fund the Special Tax
Requirement.Special Tax Requirement" means that amount required in any Fiscal Year to pay: (
1)debt service and other periodic costs on the bonds or other indebtedness of
Improvement Area No.1 of CFD No. 91-2 due in the calendar year commencing in such
Fiscal Year,2) the cost of acquisition or construction of authorized facilities of
Improvement Area No.1 of CFD No. 91-2, (3) Administrative Expenses, (4) costs
of authorized services of Improvement Area No. 1 of CPO No. 91-2, (5) any amount
required to replenish any reserve fund established in association with bonds issued for
Improvement Area No. 1 of CFD No. 91-2, (6) an amount equal to
the estimated delinquencies expected in payment of the Special Tax not otherwise taken into
account, as determined by the Finance Director or his designee, and (7) the
costs of remarketing, 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).Taxable Property" means any Parcel in or annexed to
Improvement Area No. 1 of CFD No. 91-2 which is not Public
Property or Home Owner Association Property.Town Home" means any building of
Residential Property that consists of attached units, other than Apartments, in which fIfty percent or
more of the individual units are side by side and not stacked above or
below other units in the structure.Undeveloped Property" means, for any Fiscal
Year, any Parcel of Taxable Property that is not classifIed as Developed Property or Improved Property
as of March
1 of the previous Fiscal Year.
B. ASSIGNMENT TO LAND USE CATEGORIES For each Fiscal Year, all Taxable Property
shall be classifIed as Developed Property,Improved Property, or Undeveloped Property as of March 1
of the prior Fiscal Year and shall be subject to the Special Tax in accordance
with the rate and method of apportionment described in Sections C and D
below. For purposes of determining the applicable Assigned Special Tax in each Fiscal
Year, all Developed Property shall be assigned by the Finance Director to one of the Land
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Improvement Area No. 1
CFD No. 91-
2 Page
6 below as of March 1 of the prior Fiscal Year. Non-Residential Property
shall be assigned to
Class 5.C. MAXIMUM SPECIAL
TAX RATES 1.
Developed Property The Maximum Special Tax for any Fiscal Year for each Assessor'
s Parcel classifIed as Developed Property shall be the greater of (i) the
Backup Special Tax for the Parcel, or (ii) the amount derived by application of
the applicable Assigned
Special Tax.a. Assigned
Special Tax The Assigned Special Tax per unit and per building square foot
for each Land Use Class is shown by Table 1. The Assigned Special Tax
for each dwelling unit shall be the sum of the special tax per unit plus
the product of the special tax per square foot multiplied by the building
square footage of the unit. The square footage of a dwelling unit shall be
determined by the Director of Public Works at the time of issuance of
the original building permit for the building, by reference to the square
footage shown on such building permit, exclusive of garages, common areas,
and other structures which are not used as living space. Once determined,
the square footage assigned to a residential unit shall not be subject
to change despite the issuance of additional permits for changes or
modifIcations to
the structure).
TABLE I Assigned Special
Taxes for Developed Property in Improvement Area No.1 of CFD
No.
91-2 i .... ...LandUse.. Assign,ed
Special
Tax Rates 1995-96 Per
Unit Per Square Foot 1
Single Family $650 $.65 2
Town Home $600 $.60
3 Flat $550 $.55
4 Apartment $545 NA 5 Non-Residential N/
A $26,
Improvement Area No. 1
CFD No. 91-
2 Page
7 On each July 1, commencing July 1, 1996, the Assigned Special Tax
rates for each Class shall be increased to 102 percent of the respective
Assigned Special Tax in effect in the previous Fiscal
Year.b. Backup Special
Tax The Backup Special Tax for each of the Planning Areas shown in
Exhibit A shall be the amounts indicated in Table
II.
TABLEll Backup Special Taxes
for Developed Property and Improved
Property Improvement Area No.1 of CFD No.
91-2
Planning Backup Area
Special Tax
FY 1995-96
1 $168,935
2 $274,620
3 $179,400
4 $225,810
10 $168,740 Total $
1,017,505 Upon the subdivision of these Planning Areas in a manner
that creates a Final Residential Subdivision, the Backup Special Tax
of the Planning Area shall be
allocated as follows:i) If a Final Residential Subdivision includes all
of the Taxable Property in a Planning Area, then the Backup Special
Tax for the Final Residential Subdivision shall equal the
Backup Special Tax of the Planning Area as shown in Table II, and
shall be allocated ".equally to each Parcel in such subdivision for
which the issuance of a building permit for purposes of construction
of a residential dwelling unit or units is permitted. In the case
of a Final Residential Subdivision which creates
Condominiums, the Backup Special Tax shall be allocated equally among
the dwelling units specifIed in the condominium plan. In the case
of a Final Residential Subdivision that will include
Apartments, the Backup Special Tax shall be allocated equally on the basis of
the total units allowed to be built on any Parcel compared to
the total units allowed to be built in
Improvement
Area No. 1 CFD
No. 91-2
Page 8
ii) If a Final Residential Subdivision is recorded for only a portion of
the Taxable Property in a Planning Area and additional Final
Residential Subdivisions have been recorded or are anticipated for
such Planning Area, the Backup Special Tax for such Final
Residential Subdivision, assuming that a mandatory prepayment is
not required pursuant to Section K, shall equal the Backup Special
Tax for the Planning Area as shown in Table II multiplied by the
quotient of the number of units in such Final Residential
Subdivision divided by the total number of units expected to be
built in the Planning Area (as determined by the lesser of (i) the
number of units shown for the Planning Area on the tentative map
approved for such Final Residential Subdivision or (ii) the number
of units in such Planning Area according to the current
Development Projection).
However, prior to the recordation of the last Final Residential
Subdivision within a Planning Area (as determined by the Finance
Director), the Finance Director shall, if necessary, adjust the Backup
Special Tax for such Final Residential Subdivision to ensure that the
sum of the Backup Special Taxes for all Final Residential
Subdivisions within the Planning Area is not less than the Backup
Special Tax for the Planning Area (assuming that a mandatory
prepayment has not been not required pursuant to Section K).
The Backup Special Tax for the Final Residential Subdivision shall
then be allocated to each residential unit as described above.
The Backup Special Tax for any Parcel of Non-Residential Property
shall be $0.51 per square foot of the area of the
Parcel.On each July 1, commencing July 1, 1996, the Backup Special Tax
shall be increased to 102 percent of the respective Backup Special Tax in
effect in the previous Fiscal
Year.c. Limits on Special Tax on Residential
Property Pursuant to Section 53321 of the Act, under no circumstances shall
the Special Tax levied against any Parcel of Residential Property be
increased by more than ten percent as a consequence of delinquency or default
by the owner of any other Parcel. An increase of ten percent or more
shall be determined by comparison to what the levy of Special Tax would
be for any Parcel if there were no delinquencies or
Improvement Area No. 1
CFD No. 91-
2 Page
9 2. Improved
Property The Maximum Special Tax for a Parcel of Improved Property shall be the
Backup Special Tax for such Parcel, as calculated pursuant to Section C.l.b.
above.On each July 1, commencing July 1, 1996, the Maximum Special Tax
for Improved Property shall be increased to 102 percent of the Maximum Special
Tax in effect in the previous Fiscal
Year.3. Undeveloped
Property The 1995-96 Maximum Special Tax for Undeveloped Property shall be $
26,625
per acre.On each July 1, commencing July 1, 1996, the Maximum Special
Tax for Undeveloped Property shall be increased to 102 percent of the
Maximum Special Tax in effect in the previous
Fiscal Year.D. METHOD OF APPORTIONMENT OF THE
SPECIAL TAX Commencing with Fiscal Year 1996-97, and for each following Fiscal
Year, the Finance Director shall determine the Special Tax Requirement for the applicable
Fiscal Year and shall levy the Special Tax, as provided below, until the aggregate amount
of the levy equals the Special Tax Requirement for
such Fiscal Year:First: The Special Tax shall be levied Proportionately on each Assessor'
s Parcel of Developed Property up to 91 percent of the applicable Assigned Special
Tax for each Land Use Class
of Developed Property.Second: If additional monies are needed after the fIrst step have
been completed, the Special Tax shall be levied Proportionately on each Assessor's
Parcel of Improved Property, up to 91 percent of the Maximum Special Tax
for Improved Property.Third: If additional monies are needed after the fIrst two steps have
been completed, the Special Tax shall be levied Proportionately on each Assessor's
Parcel of Undeveloped Property, up to 91 percent of the Maximum Special Tax
for Undeveloped Property.Fourth: If additional monies are needed after the fIrst three steps
have been completed,then the levy of the Special Tax on each Assessor's Parcel
of Developed Property,Improved Property, and Undeveloped Property shall be increased
in equal percentages from the amounts calculated pursuant to steps 1 through 3 above, up to
100 percent of the applicable Assigned Special Tax for Developed Property and up to 100
percent of the Maximum Special Tax for Improved Property
and Undeveloped Property.Fifth: If additional monies are needed after the first four 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
a"~.
Improvement Area No. 1
CFD No. 91-
2 Page
10 shall be increased in equal percentages from the Assigned Special Tax up to
the Maximum Special
Tax.E.
EXEMPTIONS The Finance Director shall not levy a Special Tax on up to 199.92 acres of
Public Property and Home Owner Association Property. Tax-exempt status will
be irrevocably assigned by the Finance Director in the chronological order in which
property is designated Public Property or Home Owner Association Property and in
the following order
of priority:First: Public Property owned by entities of the federal government, State
of California,or any local government agency and easements for the exclusive use of
public utility providers, as of the date of formation of CFD
No. 91-2;Second: Public Property acquired by the public agency or public
utility provider through a gift, dedication, negotiated transaction, eminent domain, or any
other form of conveyance, including granting of an easement, subsequent to the date
of formation of CFD No. 91-2, with priority in order of the
acquisition of the property;Third: Home Owner Association Property, with acres made
exempt such that the number of acres that are not exempt are equal in proportion to
the number of dwelling
units for each association.Public Property and Home Owner Association Property that is
not exempt from Special Taxes by this section shall be subject to the levy of the Special Tax
and shall be taxed as if the property were Undeveloped Property. However, on a year
to year basis, the Finance Director may exempt such Parcels from the levy of the Special
Tax in any Fiscal Year provided the Special Tax Requirement can be satisfIed without
imposing a
levy on said Parcels.
F. MANNER OF COLLECTION The Special Tax will be collected in the same manner and at the
same time as ordinary ad valorem real property taxes, provided, however, that CFD
No. 91-2 may collect Special Taxes at a different time or in a different manner
as determined by the Finance Director, if necessary
to meet its fmancial obligations.
G. TERMINATION OF SPECIAL TAX Except for any delinquent Special Taxes and related
penalties and interest, Special Taxes used to pay for either or both the acquisition and construction
of any public facilities for Improvement Area No.1 of CFD No. 91-2 (through
the issuance of bonds or otherwise)and levied on any Parcel shall not be levied after the
thirtieth (30th) Fiscal Year in which such Parcel was taxed as Developed Property.
After such thirtieth (30th) Fiscal Year,and the collection of any delinquent Special
Taxes, penalties and interest, the Finance Director shall cause a document substantially in the
Improvement Area No. 1
CFD No. 91-
2 Page
11 such termination of the levy and collection to be recorded in the offIce of the
recorder of the
County.H. APPEALING THE LEVY OF SPECIAL
TAXES Any property owner claiming that the amount or application of the Special Tax is
not correct and requesting a refund may ftle a written notice of appeal and refund to
that effect with the Finance Director not later than one calendar year after having paid
the Special Tax that is disputed. The Finance Director 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 Finance Director'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
Finance Director shall be referred to the City Council of the City and the decision of the
City Council shall be fmal. This procedure shall be exclusive and its exhaustion by
any property owner shall be a condition precedent to any legal action by such
owner.I. FULL PREPAYMENT OF SPECIAL
TAX The Special Tax on any Parcel of Developed Property may be fully prepaid at any
time and the obligation to pay the Special Tax permanently satisfIed by payment of the
sum of the
following:I. A sum equal to (a) delinquent Special Taxes on such Parcel, including
any applicable penalties and related costs, and (b) Special Taxes due on such
Parcel but not yet paid for the Fiscal Year in which such prepayment is
made.2. A sum equal to the principal portion of the amount of prepayment determined
as
follows:P = PVST + 1.
10 Where the terms have the following
meaning:
P=
PVST =the principal portion of the
prepayment the net present value of the Maximum Special Tax for the
Parcel The net present value of the Maximum Special Tax shall be calculated based
on the Maximum Special Tax that may be levied on the Parcel until the
termination date of Special Taxes for the Parcel calculated pursuant to Section G hereto,
using as the discount rate the combined aggregate yield of the outstanding bonds (i.
e.,the yield that when computing the net present value of the remaining
payments of principal and interest on the bonds produces an amount equal to the
face amount of the remaining outstanding bonds) or if no bonds are outstanding,
using a discount rate of 8.25
Improvement Area No. 1
CFD No. 91-2
Page 12 3.
The principal
portion of the prepayment shall be decreased by an adjustment for a reserve fund
credit. The adjustment shall be equal to a percent of the principal portion of the
prepayment equal to the lesser of the following: (i) the amount reqnired to be
in the reserve fund, as a percent of the bonds outstanding, and (ii)the amount actually
in the reserve fund, as a percent of the bonds outstanding.4. The amount
calculated in steps 2-3, if used to redeem bonds, shall be rounded up to
the nearest $5,000, less the interest expected to be earned on the prepayment until
such bonds are redeemed; however, if prepayment is made for two or
more Parcels together, the aggregate principal of all of the prepayments may be
rounded up to the nearest $5,000, with the addition due to the rounding apportioned to
each prepayment based on the proportion of each of the prepayments to
the total prepayment.5. The
amount needed to pay interest on the outstanding bonds to be redeemed until the earliest
call date for outstanding bonds.6. A
sum equal to applicable redemption premiums, if any, on the bonds to be redeemed.7.
A
sum equal to administrative fees and expenses of the City associated with the prepayment.The
amounts
calculated in the preceding steps shall be paid to the City and shall be distributed by
the City according to the fiscal agent agreement. Upon the payment of such prepayment
amount to the City, the obligation to pay Special Tax shall be deemed to be
permanently satisfied, the Special Tax shall not be levied thereafter, and the City shall cause
a notice of cessation of the Special Tax to be recorded within 30 working days of
receipt of such prepayment amount.The Finance
Director may disallow the right to prepay Special Taxes, if in the reasonable determination of
the Finance Director, such prepayment would negatively affect the security of
the remaining outstanding bonds.J. PARTIAL
PREPAYMENT OF SPECIAL TAX Under the
conditions set forth below, the Special Tax on Developed Property may be partially prepaid
on all of the Parcels within a Planning Area, or all of the Parcels within a Planning
Area owned by a single owner, and that portion of the Special Tax obligation permanently satisfIed.
The amount of the prepayment shall be calculated as in Section I; except,
however, the principal portion shall be calculated according to the following formula:Pp =
PH
X P Where the
terms have the following meaning:
Improvement Area No.1
CFD No. 91-
2 Page
13 Pp = the principal portion of the partial
prepayment PE = the principal portion of the prepayment calculated according to Section 1.
2 P = the percent by which the owner of the Parcels within the Planning
Area is to partially prepay the Special
Tax The partial prepayment of Special Taxes shall be collected at the close of escrow of
each Parcel in the Planning Area. An owner of the Parcels within a Planning Area
shall notify the Finance Director of (i) such owner's intent to partially prepay the Special
Tax on all of the Parcels within a Planning Area or all of those Parcels within a
Planning Area that are owned by such owner, (ii) the percentage by which the Special Tax
shall be prepaid, (ill) the size of units being built by the owner on such Parcels and
the average parcel size, and (iv) the company or agency that will be acting as the
escrow agent. The owner shall provide instructions to the escrow agent and the
Finance Director, which instructions shall direct the escrow agent to collect the
partial prepayment of the Special Taxes as calculated pursuant to this Section J and to remit
this amount to the City. The Finance Director shall provide the owner and the escrow
agent with a statement of the amount required for the partial prepayment of the Special Tax
for a Parcel within fIve (5) working days of notice of the pending close of an escrow.
The notice to the Finance Director must include confIrmation of the square footage of
the unit, calculated consistent with Section C herein. The Finance Director may charge
a reasonable fee for providing this
fIgure.With respect to any Parcel so partially prepaid, the City shall (i) distribute the
funds remitted to it by the escrow agent according to the fIscal agent agreement, (ii) cause
a suitable notice to be recorded in compliance with the Act within 30 days of receipt
of such prepayment of Special Taxes, to indicate the partial prepayment of Special
Taxes and the release of the Special Tax lien in such amount, (ill) indicate in the records
of CFD No. 91-2 that there has been a partial prepayment of the Special Tax and
that this portion of the Special Tax shall not be levied thereafter. A partial prepayment
of Special Taxes shall reduce both the Backup Special Tax and the Assigned Special Tax
of the Parcel in equal percentages. Following a partial prepayment of the Special
Tax with respect to any Parcel, the outstanding percentage (1.00 - P) of the Special Tax
shall continue to be levied on such
Parcel.The Finance Director may disallow the right to prepay Special Taxes, if in the
reasonable determination of the Finance Director, such prepayment would negatively affect
the security of the remaining outstanding
bonds.K. MANDATORY
PREPAYMENT Before each Final Residential Subdivision is recorded, the Finance Director, or
his designee,
shall:1. Calculate the Assigned Special Taxes that can be generated in each future
Fiscal Year by all existing and future (based on the Development Projection)
Developed Property in Improvement Area No.1 of CFD No. 91-2. Multiply
Improvement Area No. 1
CFD No. 91-
2 Page
14 by 1.25 to determine the adjusted Assigned Special Taxes for Improvement
Area No. I of CFD No.
91-2.2. If, in each future Fiscal Year, the adjusted Assigned Special Taxes
calculated in Step 1 are greater than or equal to 110 percent of the annual debt
service on outstanding bonds, then mandatory prepayment is not necessary. If, in
any future Fiscal Year, the adjusted Assigned Special Taxes calculated in Step 1
are less than 11 0 percent of the annual debt service on outstanding bonds,
then continue to
Step 3.3. Calculate the Assigned Special Taxes that can be generated in each
future Fiscal Year by all existing and future (based on the Development
Projection) Developed Property in the Planning Area in which the proposed
Final Residential Subdivision is located. Multiply this number by 1.25 to determine
the adjusted Assigned Special Taxes for the
Planning Area.4. Divide the Backup Special Tax for the Planning Area in which the
proposed Final Residential Subdivision is located by the total Backup Special Tax for
all Planning Areas and, for each remaining Fiscal Year, multiply the quotient by
110 percent of the annual debt service on
outstanding bonds.5. If, in each future Fiscal Year, the adjusted Assigned Special Taxes
for the Planning Area calculated in Step 3 are greater than or equal to 11 0
percent of the annual debt service for the Planning Area calculated in Step
4, then mandatory prepayment is not necessary for this Final
Residential Subdivision.If, in any future Fiscal Year, the adjusted Assigned Special Taxes
calculated in Step 3 are less than 110 percent of the annual debt service calculated in
Step 4,then continue to
Step 6.6. Calculate the present value of the annual shortfall between the
adjusted Assigned Special Taxes calculated in Step 3 and the annual debt service calculated
in Step 4 using the aggregate yield of the outstanding bonds computed pursuant
to Section 1.2. as the
discount rate.7.Divide the Planning Area shortfall calculated in Step 6 by the
future dwelling units in the Planning Area, and multiply the quotient by number of
dwelling units in the proposed Final
Residential Subdivision.The mandatory prepayment shall be calculated as in Section I; except
however, the principal portion shall be the amount calculated in Step 7 above. Payment
of such mandatory prepayment must be made prior to the recordation of the
proposed Final Residential Subdivision. The Assigned Special Taxes for Developed Property
within the Final Residential Subdivision shall not change as a result of the
mandatory prepayment.However, the Backup Special Tax allocated to the Final Residential Subdivision
shall be reduced based on the percentage of outstanding bonds allocable to such
Final Residential Subdivision that were prepaid as a result of the
EXHIBIT A
Planning Areas
CFD No. 91-
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EXIllBITC
RATE
AND METHOD OF APPORTIONMENT FOR IMPROVEMENT
AREA NO.2 OF
THE CITY OF ORANGE COMMUNITY
FACILITIES DISTRICT NO. 91-2
SERRANO HEIGHTS PUBLIC IMPROVEMENTS)
A Special Tax shall be levied and collected in Improvement Area No.2 of the City of Orange
Community Facilities District No. 91-2 (Serrano Heights Public Improvements) each
Fiscal Year, in an amount determined by the Finance Director of the City through the application
of the procedures described below. All of the real property in Improvement Area No. 2 of
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 used herein shall have the
following meanings:Act" means the Mello-Roos Community Facilities Act of 1982,
as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of
the
State of California.Administrative Expenses" means any or all of the following: the fees
and expenses of any fIscal agent (including any fees or expenses of its counsel) employed by
the City in connection with any bonds of Improvement Area No.2 of CFD No.
91-2, the expenses of the City in carrying out its duties under any fiscal agent
agreement with respect to such bonds, including, but not limited to, the levy and collection of
the Special Tax, any City charges and including the fees and expenses of its counsel, an
allocable share of the salaries of City staff directly related thereto and a proportionate
amount of City general administrative overhead related thereto, and all other costs and expenses
of the City or any fIscal agent incurred in connection with the discharge of
their respective duties under any fIscal agent agreement with respect to such bonds and, in the case of
the City, in any way related to the administration of Improvement Area No.2
of CFD No. 91-2.Apartment" means any Parcel of Residential Property that
consists of a building or buildings comprised of attached residential units available
for rental, but not purchase,by the general
public and under common management.Assessor's Parcel" or "Parcel" means a lot or parcel
with a parcel number assigned by
Improvement Area No.2
CFD No. 91-
2 Page
2 Assigned Special Tax" means the Special Tax described in Section C that applies
to Parcels of Developed
Property.Backup Special Tax" means that Special Tax described in Section C that may
apply to Parcels of Developed Property and Improved
Property.eFD No. 91-2" means Community Facilities District No. 91-2 (
Serrano Heights Public Improvements) established by the City under the Act, including
any annexations thereto.City" means the City
of Orange, California.Condominium" means a unit meeting the statutory definition
of a condominium contained in California Civil
Code, Section 1351.Council" means the City Council of the City, acting as the
legislative body of Improvement Area No.2 of
CFD No. 91-2.County" means the
County of Orange, California.Developed Property" means for any Fiscal Year, any Parcel
of Taxable Property for which a building permit was issued, as of March I of
the prior Fiscal Year.Development Projection" means an annual projection of the
number of residential units and non-residential acres expected to be developed within
Improvement Area No. 2 of CPO No. 91-2. The Development Projection for Improvement
Area No.2 of CFD No.91,2 shall include (i) the number and square footage of
existing units in each Land Use Class and the number of existing acres of
Non-Residential Property, (ii) the number and acreage of Parcels of existing Improved Property,
and (ill) a projection of all future development, including the acreage, projected number
of units in each Land Use Class,projected building square
footage, projected non-residential acres, and an absorption schedule for all future development in Improvement
Area No.2 of CFD No. 91-2. The Development Projection shall be dated as
of March I and prepared each Fiscal Year, at the discretion of the Finance
Director,
by either the Master Developer or an independent consultant.Final Residential Subdivision"
means a subdivision of property by recordation of a fInal map, parcel map, or lot
line adjustment, approved by the City pursuant to the Subdivision Map Act (
California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant
to California Civil Code 1352 that creates individual lots for
which building permits may be issued without further subdivision.Finance Director" means the official of
the City who is the chief fmancial officer or other comparable officer of
the City or designee thereof responsible for determining the Special Tax Requirement and providing
Improvement Area No.2
CFD No. 91-
2 Page
3 Fiscal Year" means the period starting any July 1 and ending on the following June
30.Flat" means any building of Residential Property that consists of attached units,
other than Apartments, in which more than fIfty percent of the individual units are
stacked above or below other units in the
structure.Home Owner Association Property" means, for any Fiscal Year, any real
property within the boundaries of Improvement Area No.2 of CFD No. 91-2 that is
owned by,or irrevocably offered for dedication to, a home owner's association on or
before March 1 of the previous Fiscal Year; provided however, that real property that
has been irrevocably dedicated will only be included if a copy of the offer is provided
to the Finance Director on or before
March 1.Improved Property" means, for any Fiscal Year, any Parcel of Taxable
Property that is within a Final Residential Subdivision as of March I of the previous Fiscal
Year, but that is not
Developed Property.Improvement Area No.2" means that area designated as Improvement Area No.
2 on the boundary map of CFD
No. 91-2.Land Use Class" or "Class" means any of the classes listed in
Table I below.Master Developer" means the owner or owners of the
predominant amount of Undeveloped Property in Improvement Area No.2 of
CFD No. 91-2.Maximum Special Tax" means the maximum Special
Tax, determined in accordance with Section C, that can be levied in Improvement Area No.2 of CFD
No. 91-2 in any Fiscal Year on Improved Property, Undeveloped Property, and
each Land Use Class
of Developed Property, as applicable.Non-Residential Property" means any
Parcel of
Developed Property other than Residential Property.Proportionately" shall mean 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. "Proportionately" shall mean for Improved Property
that the ratio of the actual Special Tax Levy to the Maximum Special Tax is equal
for all Assessor's Parcels of Improved Property. "Proportionately" shall
mean for Undeveloped Property that the ratio of the actual Special Tax levy to
the Maximum Special Tax for Undeveloped Property is equal for all
Assessor's Parcels of Undeveloped Property.Public Property" means property within the
boundaries of Improvement Area No. 2 of CFD No. 91-2 owned by, or
irrevocably offered for dedication to, the federal government, State of California, or other
public agency or easements for the
Improvement Area No.2
CFD No. 91-
2 Page
4 Residential Property" means any Parcel of Developed Property for which abuildingpermitwasissuedforpurposesofconstructingaresidentialdwellingunit(
s).Single Family" means any Parcel of Residential Property other than Apartments,
Flats, _and Town
Homes.Special Tax" means the Special Tax that may be levied by CFD No. 91-2
each Fiscal Year to fund the Special
Tax Requirement.Special Tax Requirement" means that amount required in any Fiscal Year topay: (I)debt service and other periodic costs on the bonds or other indebtednessofImprovementAreaNo.2 of CFD No. 91-2 due in the calendar year commencing insuchFiscalYear,2) the cost of acquisition or construction of authorized facilities
of Improvement Area No.2 of CFD No. 91-2, (3) Administrative Expenses, (4) costs of authorized services of Improvement Area No.2 of CFD No. 91-2, (5) anyamountrequiredtoreplenishanyreservefundestablishedinassociationwithbondsissuedforImprovementAreaNo. 2 of CFD No. 91-2, (6) an amount equal
to the estimated delinquencies expected in payment of the Special Tax not otherwise taken
into account, as determined by the Finance Director or his designee, and (7) the costs of remarketing, 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).Taxable Property" means any Parcel in or annexed
to Improvement Area No. 2 of CFD No. 91-2 which is not
Public Property or Home Owner Association Property.Town Home" means any buildingofResidentialPropertythatconsistsofattachedunits, other than Apartments, in which fIfty percent
or more of the individual units are side by side and not stacked above
or below other units in the structure.Undeveloped Property" means, for anyFiscalYear, any Parcel of Taxable Property that is not classifIed as Developed Property or Improved
Property as of
March 1 of the previous Fiscal
Year.B. ASSIGNMENT TO LAND USE CATEGORIES For each Fiscal Year, all TaxablePropertyshallbeclassifIedasDevelopedProperty,Improved Property, or Undeveloped Property as of March 1
of the prior Fiscal Year and -shall be subject to the Special Tax in accordance
with the rate and method of apportionment described in Sections C and D
below. For purposes of determining the applicable Assigned Special Tax in each Fiscal
Year, all Developed Property shall be assigned by the Finance Director to one of the LandUseClassesdesignatedinTableIbelowasofMarch1oftheprior
Fiscal Year. Non-Residential
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Improvement Area No.2
CFD No. 91-
2 Page
6 C. MAXIMUM SPECIAL TAX
RATES 1. Developed
Property The Maximum Special Tax for any Fiscal Year for each Assessor's
Parcel classifIed as Developed Property shall be the greater of (i) the Backup
Special Tax for the Parcel, or (ii) the amount derived by application of the
applicable Assigned Special
Tax.a. Assigned Special
Tax The Assigned Special Tax per unit and per building square foot for
each Land Use Class is shown by Table I. The Assigned Special Tax for
each dwelling unit shall be the sum of the special tax per unit plus the
product of the special tax per square foot multiplied by the building square
footage of the unit. The square footage of a dwelling unit shall be determined
by the Director of Public Works at the time of issuance of the
original building permit for the building, by reference to the square footage
shown on such building permit, exclusive of garages, common areas, and
other structures which are not used as living space. Once determined, the
square footage assigned to a residential unit shall not be subject to
change despite the issuance of additional permits for changes or modifIcations
to the
structure).TABLE
I Assigned Special Taxes
for Developed Property in Improvement Area No.2 of CFD No.
91-2 1 Single Family $
650 $.65 2 Town Home $
600 $.60 3 Flat $
550 $.55 4 Apartment $
545 NA 5 Non-Residential N/A $21,
128 per
net taxable acre On each July 1, commencing July I, 1996, the Assigned
Special Tax rates for each Class shall be increased to 102 percent of
the respective Assigned Special Tax in effect in the
Improvement Area
No.2 CFD No.
91-2 Page
7 b.
Backup Special Tax The
Fiscal Year 1995-96 Backup Special Tax for Improvement Area NO.2
shall equal $1,273,820. The Backup Special Tax shall only apply to Parcels
of Developed Property and Improved Property and shall be equal for all
Parcels within a Final Residential Subdivision.
Prior to the recordation of each Final Residential Subdivision, the Finance
Director shall allocate a portion of the Backup Special Tax for Improvement
Area No. 2 to such subdivision. The Backup Special Tax for a Final
Residential Subdivision shall equal the Backup Special Tax for Improvement
Area No. 2 multiplied by the quotient of the Assigned Special Taxes
expected to be generated by all future Developed Property within the Final
Residential Subdivision (based on the Development Projection) divided by
the Assigned Special Taxes expected to be generated by all existing and
future Developed Property within Improvement Area No.2 of CFD No. 91-
2 based on the Development
Projection).However, prior to the recordation of the last Final Residential
Subdivision within Improvement Area No.2 of CFD No 91-2 (as determined
by the Finance Director), the Finance Director shall, if necessary, adjust
the Backup Special Tax for such Final Residential Subdivision to ensure that the
sum of the Backup Special Taxes for all Final Residential Subdivisions is
not less than the Backup Special Tax for Improvement Area No.2 (
assuming that a mandatory prepayment has not been not required pursuant to
Section K).The Backup Special Tax for a Final Residential Subdivision
shall be allocated equally to each Assessor's Parcel of Taxable Property
in such subdivision for which the issuance of a building permit for
purposes of construction of a residential unit or units is permitted. In the case
of a Final Residential Subdivision which creates Condominiums,
the Backup Special Tax shall be allocated equally among the units specifIed
in the
condominium plan.On each July 1, commencing July I, 1996, the Backup Special
Tax for Improvement Area No.2 of CFD No. 91-2 and for
each Parcel of Developed Property or Improved Property shall be
increased to 102 percent of the Backup Special Tax in effect in the
previous Fiscal Year.c. Limits on Special Tax
on Residential Property Pursuant to Section 53321 of the Act, under no
circumstances shall the Special Tax levied against any Parcel of Residential
Property be increased by more than ten percent as a consequence of delinquency
or default by the owner of any other Parcel. An increase of ten percent
or more shall be determined by comparison to what the levy of Special
Tax would be for any Parcel if there were no
Improvement Area No.2
CFD No. 91-
2 Page
8 2. Improved
Property The Maximum Special Tax for a Parcel of Improved Property shall be the
Backup Special Tax for such Parcel, as calculated pursuant to Section C.1.b.
above.On each July 1, commencing July 1, 1996, the Maximum Special Tax
for Improved Property shall be increased to 102 percent of the Maximum Special
Tax in effect in the previous Fiscal
Year.3. Undeveloped
Property The 1995,96 Maximum Special Tax for Undeveloped Property shall be $21,
128 per
acre.On each July 1, commencing July 1, 1996, the Maximum Special Tax
for Undeveloped Property shall be increased to 102 percent of the Maximum
Special Tax in effect in the previous Fiscal
Year.D. METHOD OF APPORTIONMENT OF THE SPECIAL
TAX Commencing with Fiscal Year 1996-97, and for each following Fiscal Year,
the Finance Director shall determine the Special Tax Requirement for the applicable Fiscal
Year and shall levy the Special Tax, as provided below, until the aggregate amount of
the levy equals the Special Tax Requirement for such
Fiscal Year:First: The Special Tax shall be levied Proportionately on each Assessor's
Parcel of Developed Property up to 91 percent of the applicable Assigned Special Tax
for each Land Use Class of
Developed Property.Second: If additional monies are needed after the fIrst step has been
completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel
of Improved Property, up to 91 percent of the Maximum Special Tax for
Improved Property.Third: If additional monies are needed after the fIrst two steps have been
completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel
of Undeveloped Property, up to 91 percent of the Maximum Special Tax for
Undeveloped Property.Fourth: If additional monies are needed after the fIrst three steps have
been completed,then the levy of the Special Tax on each Assessor's Parcel of
Developed Property,Improved Property, and Undeveloped Property shall be increased in
equal percentages from the amounts calculated pursuant to steps 1 through 3 above, up to 100
percent of the applicable Assigned Special Tax for Developed Property and up to 100 percent
of the Maximum Special Tax for Improved Property and
Undeveloped Property.Fifth: If additional monies are needed after the fIrst four 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
L
Improvement Area No.2
CFD No. 91-
2 Page
9 shall be increased in equal percentages from the Assigned Special Tax up to
the Maximum Special
Tax.E.
EXEMPTIONS The Finance Director shall not levy a Special Tax on up to 232.83 acres of
Public Property and Home Owner Association Property. Tax-exempt status will
be irrevocably assigned by the Finance Director in the chronological order in which
property is designated Public Property or Home Owner Association Property and in
the following order
of priority:Fim;: Public Property owned by entities of the federal government, State
of California,or any local government agency and easements for the exclusive use of
public utility providers, as of the date of formation of CFD
No. 91-2;Second: Public Property acquired by the public agency or public
utility provider through a gift, dedication, negotiated transaction, eminent domain, or any
other form of conveyance, including granting of an easement, subsequent to the date
of formation of CFD No. 91-2, with priority in order of the
acquisition of the property;Third: Home Owner Association Property, with acres made
exempt such that the number of acres that are not exempt are equal in proportion to
the number of dwelling
units for each association.Public Property and Home Owner Association Property that is
not exempt from Special Taxes by this section shall be subject to the levy of the Special Tax
and shall be taxed as if the property were Undeveloped Property. However, on a year
to year basis, the Finance Director may exempt such Parcels from the levy of the Special
Tax in any Fiscal Year provided the Special Tax Requirement can be satisfIed without
imposing a
levy on said Parcels.
F. MANNER OF COLLECTION The Special Tax will be collected in the same manner and at the
same time as ordinary ad valorem real property taxes, provided, however, that CFD
No. 91-2 may collect Special Taxes at a different time or in a different manner
as determined by the Finance Director, if necessary
to meet its fInancial obligations.
G. TERMINATION OF SPECIAL TAX Except for any delinquent Special Taxes and related
penalties and interest, Special Taxes used to pay for either or both the acquisition and construction
of any public facilities for Improvement Area No.2 of CFD No. 91-2 (through
the issuance of bonds or otherwise)and levied on any Parcel shall not be levied after the
thirtieth (30th) Fiscal Year in which such Parcel was taxed as Developed Property.
After such thirtieth (30th) Fiscal Year,and the collection of any delinquent Special
Taxes, penalties and interest, the Finance Director shall cause a document substantially in the
Improvement Area No.2
CFD No. 91-
2 Page
10 such termination of the levy and collection to be recorded in the office of the
recorder of the
County.H. APPEALING THE LEVY OF SPECIAL
TAXES Any property owner claiming that the amount or application of the Special Tax is
not correct and requesting a refund may me a written notice of appeal and refund to
that effect with the Finance Director not later than one calendar year after having paid
the Special Tax that is disputed. The Finance Director 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 Finance Director'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
Finance Director shall be referred to the City Council of the City and the decision of the
City Council shall be fmal. This procedure shall be exclusive and its exhaustion by
any property owner shall be a condition precedent to any legal action by such
owner.I. FULL PREPAYMENT OF SPECIAL
TAX The Special Tax on any Parcel of Developed Property may be fully prepaid at any
time and the obligation to pay the Special Tax permanently satisfIed by payment of the
sum of the
following:1. A sum equal to (a) delinquent Special Taxes on such Parcel, including
any applicable penalties and related costs, and (b) Special Taxes due on such
Parcel but not yet paid for the Fiscal Year in which such prepayment is
made.2. A sum equal to the principal portion of the amount of prepayment determined
as
follows:P = PVST + 1.
10 Where the terms have the following
meaning:
P=
PVST =the principal portion of the
prepayment the net present value of the Maximum Special Tax for the
Parcel The net present value of the Maximum Special Tax shall be calculated based
on the Maximum Special Tax that may be levied on the Parcel until the
termination date of Special Taxes for the Parcel calculated pursuant to Section G hereto,
using as the discount rate the combined aggregate yield of the outstanding bonds (i.
e.,the yield that when computing the net present value of the remaining
payments of principal and interest on the bonds produces an amount equal to the
face amount of the remaining outstanding bonds) or if no bonds are outstanding,
using a discount rate of 8.25
Improvement Area No.2
CFD No. 91-
2
Pagell 3. The principal portion of the prepayment shall be decreased by an adjustment
for a reserve fund credit. The adjustment shall be equal to a percent of the
principal portion of the prepayment equal to the lesser of the following: (i) the
amount required to be in the reserve fund, as a percent of the bonds outstanding, and (
ii)the amount actually in the reserve fund, as a percent of the bonds
outstanding.4. The amount calculated in steps 2-3, if used to redeem bonds, shall
be rounded up to the nearest $5,000, less the interest expected to be earned
on the prepayment until such bonds are redeemed; however, if prepayment is
made for two or more Parcels together, the aggregate principal of all of
the prepayments may be rounded up to the nearest $5,000, with the addition due to
the rounding apportioned to each prepayment based on the proportion of each
of the prepayments to the
total prepayment.5. The amount needed to pay interest on the outstanding bonds to be
redeemed until the earliest call date for
outstanding bonds.6. A sum equal to applicable redemption premiums, if any, on the bonds
to
be redeemed.7. A sum equal to administrative fees and expenses of the City associated
with
the prepayment.The amounts calculated in the preceding steps shall be paid to the City and
shall be distributed by the City according to the fIscal agent agreement. Upon the
payment of such prepayment amount to the City, the obligation to pay Special Tax shall
be deemed to be permanently satisfied, the Special Tax shall not be levied thereafter, and
the City shall cause a notice of cessation of the Special Tax to be recorded within
30 working days of receipt of such
prepayment amount.The Finance Director may disallow the right to prepay Special Taxes, if in
the reasonable determination of the Finance Director, such prepayment would negatively
affect the security of the remaining
outstanding bonds.J. PARTIAL PREPAYMENT OF
SPECIAL TAX Under the conditions set forth below, the Special Tax on Developed Property
may be partially prepaid on all of the Parcels within a Final Residential Subdivision, or all
of the Parcels within a Final Residential Subdivision owned by a single owner, and
that portion of the Special Tax obligation permanently satisfIed. The amount of the
prepayment shall be calculated as in Section I; except, however, the principal portion shall
be calculated according to the
following formula:Pp = PE
X P Where the terms have the
Improvement Area No.2
CFD No. 91-
2 Page
12 Pp = the principal portion of the partial
prepayment PE = the principal portion of the prepayment calculated according to Section 1.
2 P = the percent by which the owner of the Parcels within the Final
Residential Subdivision is to partially prepay the Special
Tax The partial prepayment of Special Taxes shall be collected at the close of escrow of
each Parcel in the Final Residential Subdivision. An owner of the Parcels within a
Final Residential Subdivision shall notify the Finance Director of (i) such owner's intent
to partially prepay the Special Tax on all of the Parcels within a Final
Residential Subdivision or all of those Parcels within a Final Residential Subdivision that are
owned by such owner, (ii) the percentage by which the Special Tax shall be prepaid, (ill)
the size of units being built by the owner on such Parcels and the average parcel size,
and iv) the company or agency that will be acting as the escrow agent. The owner
shall provide instructions to the escrow agent and the Finance Director, which
instructions shall direct the escrow agent to collect the partial prepayment of the Special Taxes
as calculated pursuant to this Section J and to remit this amount to the City. The
Finance Director shall provide the owner and the escrow agent with a statement of the
amount required for the partial prepayment of the Special Tax for a Parcel within fIve (
5)working days of notice of the pending close of an escrow. The notice to the
Finance Director must include confIrmation of the square footage of the unit, calculated
consistent with Section C herein. The Finance Director may charge a reasonable fee for
providing this
fIgure.With respect to any Parcel so partially prepaid, the City shall (i) distribute the
funds remitted to it by the escrow agent according to the fIscal agent agreement, (ii) cause
a suitable notice to be recorded in compliance with the Act within 30 days of receipt
of such prepayment of Special Taxes, to indicate the partial prepayment of Special
Taxes and the release of the Special Tax lien in .such amount, (ill) indicate in the records
of CFD No. 91-2 that there has been a partial prepayment of the Special Tax and
that this portion of the Special Tax shall not be levied thereafter. A partial prepayment
of Special Taxes shall reduce both the Backup Special Tax and the Assigned Special Tax
of the Parcel in equal percentages. Following a partial prepayment of the Special
Tax with respect to any Parcel, the outstanding percentage (1. 00 - P) of the Special Tax
shall continue to be levied on such
Parcel.The Finance Director may disallow the right to prepay Special Taxes, if in the
reasonable determination of the Finance Director, such prepayment would negatively affect
the security of the remaining outstanding
bonds.K. MANDATORY
PREPAYMENT Before each Final Residential Subdivision is recorded, the Finance Director, or
his designee,
shall:I. Calculate the Assigned Special Taxes that can be generated in each future
Fiscal Year by all existing and future (based on the Development Projection)
Developed Property in Improvement Area No.2 of CFD No. 91-2. Multiply
L
Improvement Area No.2
CFD No. 91-
2 Page
13 by 1.25 to determine the adjusted Assigned Special Taxes for Improvement
Area No.1 of CFD No.
91-2.2. If, in each future Fiscal Year, the adjusted Assigned Special Taxes
calculated in Step 1 are greater than or equal to 11 0 percent of the annual debt
service on outstanding bonds, then mandatory prepayment is not necessary. If, in
any future Fiscal Year, the adjusted Assigned Special Taxes calculated in Step I
are less than 110 percent of the annual debt service on outstanding bonds,
then continue to
Step 3.3. Calculate the Assigned Special Taxes that can be generated in each
future Fiscal Year by all existing and future (based on the Development
Projection) Developed Property in the proposed Final Residential Subdivision. Multiply this
number by 1.25 to determine the adjusted Assigned Special Taxes for the
Final
Residential Subdivision.4. Divide the Backup Special Tax for all Parcels in the proposed
Final Residential Subdivision by the total Backup Special Tax for Improvement Area No. 2
of CFD No. 91-2 and, for each remaining Fiscal Year, multiply the
quotient by 110 percent of the annual debt service
on outstanding bonds.5. If, in each future Fiscal Year, the adjusted Assigned Special
Taxes for the proposed Final Residential Subdivision calculated in Step 3 are
greater than or equal to 110 percent of the annual debt service for the
proposed Final Residential Subdivision calculated in Step 4, then mandatory prepayment is
not necessary for this Final Residential Subdivision. If, in any future Fiscal
Year, the adjusted Assigned Special Taxes calculated in Step 3 are less than 11 0
percent of the annual debt service calculated in Step 4, then continue
to Step 6.6. Calculate the present value of the annual shortfall between
the adjusted Assigned Special Taxes calculated in Step 3 and the annual debt service
calculated in Step 4 using the aggregate yield of the outstanding bonds computed
pursuant to Section 1.2. as
the discount rate.7. Divide the shortfall calculated in Step 6 by the future dwelling
units in the proposed
Final Residential Subdivision.The mandatory prepayment shall be calculated as in Section I;
except however, the principal portion shall be the amount calculated in Step 7 above.
Payment of such mandatory prepayment must be made prior to the recordation of
the proposed Final Residential Subdivision. The Assigned Special Taxes for Developed
Property within the Final Residential Subdivision shall not change as a result of
the mandatory prepayment.However, the Backup Special Tax allocated to Parcels in
the Final Residential Subdivision shall be reduced based on the percentage of outstanding
bonds allocable to such Final Residential Subdivision that were prepaid as a result
of
the mandatory prepayment.J:\CUENt'S\ORANOE.Crr\SERRANO.HTS\
EXHIBITD
FACILITIES TO BE FINANCED BY
IMPROVEMENT AREA NO.1 OF THE
on 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, equestrian trails and landscaping adjacent and/ or in the vicinity of such
road construction.
The foregoing shall include costs related to 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 Improvement Area. Construction of mainline
water, sanitary sewer, storm drain improvements; and landscaping in public rights of way
adjacent and/ or in the vicinity of such road construction. Grading of land 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 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.
3. 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: Lorna Street Bridge.c) Signalization: Santiago
Canyon/Orange Park; and Serrano/Yellowstone.d) Other Transportation
System Improvements: Street Scan - Audio Visual Surveillance System; Bus/Parking
Bays; Signal System Master - Increase Capacity; and other Operational Improvements.4. Fire
Protection Facilities Improvements:
Acquisition, construction and/ or installation of a site for and
construction of a new fire station in the general vicinity of the District,including any costs related to
mobilization, site preparation, site acquisition, and grading:5. Transportation System Improvement and
Fire Facility 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 Improvement Area, and any transportation system fees 0-1
I..:.
imposed on new development in the Improvement Area 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 and 2 above, shall
be generally as described in the report of Fuscoe Engineering, Inc. on file with the City Director
of Public Works.
D-
EXHIBITE
FACILITIES TO BE FINANCED BY
IMPROVEMENT AREA NO.2 OF THE
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, equestrian trails and landscaping adjacent and/ or in the vicinity of
such road
construction.The foregoing shall include costs related to 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 ofpumpstationsiteandprovisionofsiteimprovementsincludingwaterlinesandaccess
routes.2. 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 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.3. 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, sanitary sewer, storm drain improvements; and landscaping in public rights
of way adjacent and/ or in the vicinity of such road
construction.The foregoing shall include costs related to 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.4. 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: Loma Street Bridge.c) Signalization:
Santiago Canyon/Orange Park; and Serrano/Yellowstone.d) Other
Transportation System Improvements: Street Scan - Audio Visual Surveillance System; Bus/
Parking Bays; Signal System Master. Increase Capacity; and other Operational Improvements.
E-l
IlL.... -5.
Fire Protection Facilities Improvements: Acquisition, construction and/ or installation of
a site for and construction of a new fire station in the general vicinity of the District,including
any costs related to mobilization, site preparation, site acquisition, and grading:6.
Transportation System Improvement and Fire Facility 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 Improvement Area, and any transportation system fees imposed
on new development in the Improvement Area 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 and 3 above,should
be generally as described in the report of Fuscoe Engineering, Inc. on file with the City Director
of Public Works.E.
2
EXHIBITF
NOTICE OF PUBLIC HEARING
IMPROVEMENT AREA NO.1 AND
IMPROVEMENT AREA NO.2 OF THE
CITY OF ORANGE
COMMUNITY FACILITIES DISTRICT NO. 91-
2 SERRANO HEIGHTS PUBLIC
IMPROVEMENTS)Notice is hereby given that on April 9, 1996, the City Council of the City ofOrangeadoptedaResolutionentitled "A Resolution of the City Council of the City ofOrangeDesignatingImprovementAreasWithintheCityofOrangeCommunityFacilitiesDistrictNo.91-2 (Serrano Heights Public Improvements), and of Consideration to Alter theRateandMethodofApportionmentofSpecialTaxesandtheAuthorizedFacilitiesForSuchAreas."Pursuant to the Mello-Roos Community Facilities Act of 1982 (the "Act") the CityCounciloftheCityofOrangeherebygives
notice as follows:A. The text of said Resolution
is as follows:WHEREAS, on November 12, 1991, the City Council of theCityofOrangeadopted (a) Resolution No. 7898 of the City of Orange (the "City") stating its intention to form the City of Orange Community Facilities District No. 91-2 (Serrano Heights Public Improvements) (the "District"), pursuant totheMello-Roos Community Facilities Act of 1982, as amended (the "Act"), to finance certainfacilities, and (b) Resolution No.7899 of the City stating its intention to issue bonds fortheDistrict
to finance such facilities; and WHEREAS, on December 17, 1991, the CityCounciladopted (a) Resolution No.7918 of the City establishing the District, authorizing the levy ofaspecialtaxwithintheDistrictandsettinganappropriationslimitfortheDistrict, and (b) Resolution No. 7919 of the City determining the necessity to incurbonded
indebtedness within the District;and WHEREAS, subsequent to the formation oftheDistrict, the sole landowner within the District requested that the rate and methodofapportionmentofthespecialtaxesfor
the District be altered; and WHEREAS, on November 14, 1995, theCityCounciladoptedResolutionNo.8545 of the City entitled "A Resolution of the City CounciloftheCityofOrangeDeterminingThatAlterationoftheRateandMethodofApportionmentofSpecialTaxesforCityofOrangeCommunityFacilitiesDistrictNo. 91-2 (Serrano Heights Public Improvements) is Lawfully AuthorizedandDirectingRecordingofAmendmenttoNoticeofSpecialTaxLien," which resolution determinedthatthealterationoftherateandmethodofapportionmentofthespecialtaxesfortheDistrict, as
described therein,was lawfully authorized; and WHEREAS, City staff has now received a requestfromthesoleownerofthepropertyintheDistricttodesignateimprovementareaswithintheDistrict, to alter the rate and method of apportionment of the special taxes fortheDistrictasitappliestosuchimprovementareas, to alter the authorizedimprovementsfortheDistrictastheyapplytosuchimprovementareas, andtoamendthebondedindebtednessandappropriationslimitsfortheDistrictastheyapplytosuchimprovementareas, and the City Council desires to acknowledge receipt
of
i"';';;,.
areas within the District, and to commence proceedings to alter the rate and method of
apportionment of the special tax authorized to be levied within such improvement
areas, to alter the authorized improvements for such improvement areas and to amend
the bonded indebtedness and appropriations limits for such improvement areas.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ORANGE DOES
HEREBY RESOLVE AS FOllOWS:
Section 1. Receipt by the City of a request of the owner of all of the property in
the District to designate improvement areas within the District, to alter the rate and
method of apportionment of the special taxes for such improvement areas, to alter the
authorized improvements for such improvement areas and to amend the bonded
indebtedness and appropriations limits for such improvement areas, is hereby
acknowledged.
Section 2. The City Council hereby designates the area specified as the "West
Parcel" on the map of the District attached hereto as Exhibit A as "Improvement Area
No.1 of the City of Orange Community Facilities District No. 91-2 (Serrano
Heights Public Improvements)," and the area specified as the "East Parcel" on said map
as Improvement Area No.2 of the City of Orange Community Facilities District No.
91-2 Serrano Heights Public Improvements)." Said Improvement Area No.1
is hereinafter referred to as "Area 1 of CFD 91-2" and said Improvement Area No.
2 is hereinafter referred to as "Area 2of CFD 91-2." The City Clerk is hereby directed
to record or cause to be recorded in the office of the County Recorder a first
amended boundary map for the District
delineating such improvement areas.Section 3. The City Council hereby finds and
determines that public convenience and necessity require that the rate and method of apportionment
of the special tax authorized to be levied within Area 1 of CFD 91-2 and
the public facilities which should be financed by Area 1 of CFD 91-2, be altered. The
name of the area is "Improvement Area No.1 of the City of Orange
Community Facilities District No. 91-2 (Serrano Heights Public Improvements;' and the territory
included in the area is that territory designated as the "West Parcel" on the map of
the District attached hereto as Exhibit A.Section 4. The City Council
hereby finds and determines that public convenience and necessity require that the rate and
method of apportionment of the special tax authorized to be levied within Area 2 of CFD
91-2 and the public facilities which should be financed by Area 2 of CFD 91-2,
be altered. The name of the area is "Improvement Area No.2 of the
City of Orange Community Facilities District No. 91-2 (Serrano Heights Public Improvements;'
and the territory included in the area is that territory designated as the "East Parcel" on
the map of the District attached hereto as Exhibit A.Section 5. The rate
and method of apportionment of the special tax among the parcels of real property within Area
1 of CFD 91-2 is proposed to be amended and restated as set
forth in Exhibit B attached hereto and by this reference incorporated herein. The conditions
under which the obligation to pay the specified special tax may be prepaid
and permanently satisfied are specified in said Exhibit B. Such amended and restated rate
and method of apportionment is in sufficient detail to allow each landowner within Area 1 of
CFD 91,2
to estimate the maximum amount such owner will have to pay.Section 6. The
rate and method of apportionment of the special tax among the parcels of real property within
Area 2 of CFD 91-2 is proposed to be amended and restated as
set forth
herein. The conditions under which the obligation to pay the specified special tax may
be prepaid and permanently satisfied are specified in said Exhibit C. Such amended
and restated rate and method of apportionment is in sufficient detail to allow each
landowner within Area 2 of CFD 91-2 to estimate the maximum amount such owner
will have to
pay.Section 7. The facilities proposed to be financed by Area 1 of CFD 91-
2 are proposed to be changed to those facilities set forth in Exhibit D attached hereto
and by this reference
incorporated herein.Section 8. The facilities proposed to be financed by Area 2 of CFD 91,
2 are proposed to be changed to those facilities set forth in Exhibit E attached hereto
and by this reference
incorporated herein.Section 9. The appropriations limit for the District as set forth in
City Resolution Nos. 7898 and 7918, and the bonded indebtedness limit for the District, as set
forth in City Resolution Nos. 7899 and 7919, are hereby amended, subject to the approval
of at least two-thirds of the qualified electors of the District, to be as follows: (
a) the annual appropriations limit for Area 1 of CFD 91-2 is $14,000,
000 and the bonded indebtedness limit for Area 1 of CFD 91-2 is $14,000,
000, and (b) the annual appropriations limit for Area 2 of CFD 91-2 is $
17,000,000 and the bonded indebtedness limit for Area 2 of
CFD 91-2 is $17,000,000.Section 10. Tuesday, May 14, 1996, at 7:00 p.
m., in the regular meeting place of the City Council, Council Chambers,
City Hall, 300 East Chapman Avenue, Orange,California, be, and the same are hereby appointed and
fixed as the time and place when and where the City Council, as legislative body
for the District, will conduct a public hearing on the proposed
alterations and amendments described in the preceding
Sections 5, 6, 7, 8 and 9.Section 11. The City Clerk is hereby
directed to cause notice of said public hearing to be given by publication one time in a
newspaper published in the area of the District. The publication of said notice shall be
completed at least seven days before the date herein set for said hearing. Said notice shall be
in the form of Exhibit F hereto.Section 12. The officers and employees
of the City are hereby authorized and directed to take all actions and do all things which
they, or any of them, may deem necessary or desirable to accomplish
the purposes of this Resolution
and not inconsistent with the provisions hereof.Section 13. This Resolution
shall take effect immediately upon its adoption.B. The time and place established under
said Resolution for the public hearing required under the Act are Tuesday, May 14, 1996, at 7:00 p.m., in
the regular meeting place of the City Council of the City of Orange, Council
Chambers, City
Hall, 300 East Chapman Avenue,Orange, California.C. At said hearing, the testimony will be heard
of all interested persons or taxpayers for or against the changing of existing special taxes
and the existing facilities, and the amendment of the annual appropriations limit and bonded
indebtedness limit, applicable to each of the improvement areas within the District. Any person interested
may file a protest in writing as provided in Section 53336 of the Act. If the owners of onE~..half or
more of the area of land in the applicable improvement area of the District not
exempt from the special tax file written protests against the proposed alternation to the
rate and
special taxes for or the facilities to be financed by an improvement area of the District or the
annual appropriations limit or the bonded indebtedness limit for an improvement area of the
District, and the protests are not withdrawn to reduce the value of the protests to less than a
majority, the City Council shall eliminate the applicable alteration or amendment, as applicablefromtheproceedingsfortherespectiveimprovementareaandthealterationoramendment, as
applicable shall not be included in a resolution for a period of one year from the date of
decision of the City Council after the hearing.
D. The proposed voting procedure for' each improvement area shall be by special mail
or hand-delivered ballot of the property owners within the territory included with
that respective improvement area of the
District.Dated: April -J
1996
s/Publish: April-
J 1996
City Clerk,City
of