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HomeMy WebLinkAbout6.1 East Ranch Community Facilities District Formationr DUBLIN CALIFORNIA STAFF REPORT CITY COUNCIL DATE: December 5, 2023 TO: Honorable Mayor and City Councilmembers FROM: Linda Smith, City Manager SU B.FCT : East Ranch Community Facilities District Formation Prepared by:• Jay Baksa, Finance Director EXECUTIVE SUMMARY: Agenda Item 6.1 The City Council will conduct a public hearing to consider forming City of Dublin Community Facilities District No. 2023-1 (East Ranch), authorizing a limit on bonded indebtedness for the district, calling for a special mailed ballot election, declaring election results, introducing an ordinance, and conducting related proceedings. STAFF RECOMMENDATION: Receive, and direct the City Clerk to file with these proceedings, the Community Facilities District Report and conduct a public hearing regarding the establishment of Community Facilities District No. 2023-1 (East Ranch) and deeming it necessary to incur indebtedness for CFD No. 2023-1. If following such public hearing, no majority protest has been filed pertaining to the establishment of CFD No. 2023-1 or the levy of special taxes, initially adopt the following resolutions: 1) Resolution Forming the City of Dublin Community Facilities District No. 2023-1 (East Ranch). 2) Resolution Determining Necessity to Incur Bonded Indebtedness for City of Dublin Community Facilities District No. 2023-1 (East Ranch). 3) Resolution Calling a Special Election for City of Dublin Community Facilities District No. 2023-1 (East Ranch). Following the adoption of the above resolutions, the City Clerk will announce the results of the ballots cast in the special mailed ballot election to be held within CFD No. 2023-1 to enable the qualified election of CFD No. 2023-1 to consider the ballot questions regarding (a) authorization to levy special taxes within CFD No. 2023-1, (b) the authorization to issue bonds secured by the levy of such special taxes and (c) the establishment of an appropriation limit for CFD No. 2023-1. Page 1 of 4 101 If the results of the special mailed -ballot election reveal that the propositions have received the affirmative vote of two-thirds of the votes cast, Staff recommends that the City Council take the following actions: 1. Adopt the Resolution Declaring Results of Special Election and Directing Recording of Notice of Special Tax Lien for City of Dublin Community Facilities District No. 2023-1 (East Ranch). 2. Waive the first reading and INTRODUCE the Ordinance Levying Special Taxes Within City of Dublin Community Facilities District No. 2023-1 (East Ranch). FINANCIAL IMPACT: All costs associated with the formation of the proposed Community Facilities District are borne entirely by the developer. The proposed Community Facilities District will be self-sustaining and will include annual compensation to the City for its management. DESCRIPTION: Background The 165.5-acre East Ranch development project site is an undeveloped parcel located within the Fallon Village area of the Eastern Dublin Specific Plan (EDSP). The site is located north of Interstate 580, east of Fallon Road and the Jordan Ranch development, south of the Positano development, and adjacent to the City's eastern boundary. The project site generally increases in elevation from south to north with knolls and hilly terrain in the northeastern portion of the site. The City Council has received two presentations, on April 18, 2023, and June 20, 2023, from TH East Ranch Dublin, LLC (an affiliate of developer Trumark) on the project, which included a discussion on the formation of two types of Community Facilities Districts (CFDs), a Services CFD and a Facilities CFD. The Services CFD would fund the maintenance of public streets. The Facilities CFD would help fund construction of certain public infrastructure and development impact fees associated with the project. The City Council expressed general support for the CFDs, with specifics of the proposed CFDs to be brought back to the City Council at future meetings as detailed below. After further discussions between the City and the developer, it was decided the most efficient approach was to establish a single CFD that would levy two separate special taxes - one to pay for services and one to pay for facilities - instead of creating two separate CFDs, with the result being the same. At the September 19, 2023 meeting, the City Council took the first step in the CFD formation process by entering into a deposit and reimbursement agreement with the developer. This agreement allows the City to cover all costs associated with CFD formation. At the October 17, 2023 meeting, the City Council took the next step by adopting by resolutions of intention to form the CFD and to incur debt to fund the CFD, and setting the date for a public Page 2 of 4 102 hearing and special landowner election for December 5, 2023. Public Hearing and Tonight's Actions Tonight's Public Hearing will provide the public an opportunity to give testimony related to the formation of CFD No. 2023-1 (East Ranch), as well as the CFD Report (Attachment 1), which describes the CFD boundaries, the rate and method of apportionment of the special taxes to be levied, and the facilities to be financed by the CFD. The proceedings to establish CFD No. 2023-1 will be accomplished by the adoption of the resolutions and the introduction of an Ordinance Levying Special Taxes identified in the recommended actions. Specifically, the City Council will be asked to consider the following actions: 1. Adopt Resolution of Formation. This resolution establishes the boundaries of CFD No. 2023-1 and the rate and method of apportionment of the special taxes to be levied to provide for certain services in CFD No. 2023-1 and to pay the cost of the facilities to be financed by CFD No. 2023-1. It also sets out the terms and conditions for a special mailed -ballot election to be conducted by the City Clerk as the election official for a vote to be taken by the landowners of record. The registrar of voters has certified that there are no registered voters within the proposed CFD, thus the vote will be by the owners of land. 2. Adopt Resolution Declaring Intention to Incur Indebtedness. This Resolution declares the necessity to incur indebtedness to finance identified public facilities through the CFD No. 2023-1 and identifies a maximum proposed debt amount of $67 million. 3. Adopt the Resolution Calling for the Special Election. The election will be held at tonight's meeting and the resolution will authorize the City Clerk to conduct the election and canvass the results. Prior to tonight's meeting the landowners filed a waiver of timing requirements for holding an election, which allows the election to be held at tonight's meeting with the results also determined at this meeting. After these resolutions are adopted, the City Clerk will open the ballots and state the results of the special mailed ballot election. If the results of the special mailed ballot elections reveal that the propositions have received the affirmative vote of two-thirds of the votes cast, the City Council will then be asked to: 4. Adopt Resolution Declaring Results of Special Election and Directing Recording of Notice of Special Tax Lien. This resolution confirms the results of the election and directs the recording of a notice of the lien of the special taxes. The City Clerk will complete the Canvass and Statement of Results of Election attached as an exhibit to this resolution. 5. Introduce and Waive the First Reading of the Ordinance Levying Special Taxes Within CFD No. 2023-1. This ordinance authorizes the levy of a special tax on parcels or real property on the secured property tax roll of Alameda County that are within the boundaries of CFD 2023-1. Page 3 of 4 103 Conclusion and Next Stens The City Council may establish CFD No. 2023-1 only after conducting the public hearing and only if no majority protests of the landowners to establishment of CFD No. 2023-1 or the levy of special taxes is filed. Following tonight's public hearing, the proposed schedule to complete the formation of the CFD is as follows: • Record Notice of Special Tax Lien - within 15 days after tonight's meeting. • Second Reading and Adoption of Ordinance levying Special Tax - December 19, 2023. • Effective Date of Special Tax Ordinance - 30 days after adoption, anticipated to be January 19, 2024. The resolutions and related documents have been prepared and reviewed by the City's finance team, which includes bond counsel, disclosure counsel, financial advisor, and special tax consultant. Based on the proposed timelines and a successful formation of the East Ranch CFD, Staff anticipates bringing to the City Council the documents required for the first bond sale in late 2024. STRATEGIC PLAN INITIATIVE: Strategy 3: Infrastructure Maintenance and Reinvestment Objective D: Explore use of funding mechanisms like community facilities districts for capital and ongoing maintenance needs. NOTICING REQUIREMENTS/PUBLIC OUTREACH: A public hearing notice was published in the East Bay Times on November 24, 2023, and the City Council Agenda was posted. ATTACHMENTS: 1) Community Facilities District No. 2023-1 (East Ranch) Community Facilities District Report 2) Resolution Forming the City of Dublin Community Facilities District No. 2023-1 (East Ranch) 3) Exhibit A to the Resolution - Rate and Method of Apportionment 4) Resolution Determining Necessity to Incur Bonded Indebtedness for City of Dublin Community Facilities District No. 2023-1 (East Ranch) 5) Resolution Calling a Special Election for City of Dublin Community Facilities District No. 2023- 1 (East Ranch) 6) Resolution Declaring Results of the Special Election and Directing Recording of Notice of Special Tax Lien for City of Dublin Community Facilities District No. 2023-1 (East Ranch) 7) Ordinance Levying Special Taxes within City of Dublin Community Facilities District No. 2023- 1 (East Ranch) Page 4 of 4 104 Attachment 1 CITY OF DUBLIN COMMUNITY FACILITIES DISTRICT NO. 2023-1 (EAST RANCH) COMMUNITY FACILITIES DISTRICT REPORT CONTENTS Introduction A. Description of Facilities and Services B. Cost Estimates C. Proposed Boundaries of the Community Facilities District D. Rate and Method of Apportionment of Special Tax Exhibit A — Description of the Proposed Facilities and Services Exhibit B — Cost Estimates Exhibit C — Rate and Method of Apportionment of Special Tax 105 Attachment 1 CITY OF DUBLIN COMMUNITY FACILITIES DISTRICT NO. 2023-1 (EAST RANCH) INTRODUCTION The City Council (the "City Council") of the City of Dublin (the "City") did, pursuant to the provisions of the Mello -Roos Community Facilities Act of 1982 (the "Law"), on October 17, 2023, adopt a resolution entitled, "A Resolution of the City Council of the City of Dublin Declaring Intention to Form a Community Facilities District and Levy Special Taxes in The City of Dublin Community Facilities District No. 2023-1 (East Ranch) to Finance Certain Public Services and the Acquisition and Construction of Certain Public Facilities in and for such Community Facilities District" (the "Resolution of Intention"). In the Resolution of Intention, the City Council expressly ordered the preparation of a written Community Facilities District Report (the "Report") for the proposed City of Dublin Community Facilities District No. 2023-1 (East Ranch) (the "CFD"). The Resolution of Intention ordering the Report did direct that the Report generally contain the following: (a) A description of the facilities (the "Facilities") and services (the "Services") by type that will be required to adequately meet the needs of the CFD. (b) An estimate of the fair and reasonable cost of the Services and Facilities including the cost of acquisition of lands, rights -of -way and easements, any physical facilities required in conjunction therewith and incidental expenses in connection therewith, including the costs of the proposed bond financing and all other related costs as provided in Section 53345.3 of the Act. For particulars, reference is made to the Resolution of Intention for the CFD, as previously approved and adopted by the City Council. NOW, THEREFORE, the following data is submitted pursuant to the direction of the City Council: A. DESCRIPTION OF FACILITIES AND SERVICES. A general description of the proposed Facilities, Services, and incidental expenses thereto is provided in Exhibit "A" attached hereto and hereby made a part hereof. B. COST ESTIMATES. Cost estimates for the Facilities and Services are set forth in Exhibit "B" attached hereto and hereby made a part hereof. C. PROPOSED BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT. The proposed boundaries of the CFD are those properties and parcels on which special taxes may be levied to pay for the Facilities and Services. The proposed boundaries of the CFD are identified in the map entitled "Proposed Boundaries of City of Dublin Community Facilities District No. 2023-1 (East Ranch), County of Alameda, State 1 106 Attachment 1 of California", which was recorded on in the office of the County Recorder for the County of Alameda. D. RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX. All of the property located within the CFD boundaries, unless exempted by law or by the Rate and Method of Apportionment of Special Tax (the "RMA"), shall be taxed for the purpose of financing the Facilities and Services. The City will annually determine the actual amount of the special tax levy based on the method and subject to the Maximum Special Tax rates contained in the RMA. The RMA is provided in Exhibit "C" attached hereto and hereby made a part hereof. 2 107 Attachment 1 EXHIBIT A CITY OF DUBLIN COMMUNITY FACILITIES DISTRICT NO. 2023-1 (EAST RANCH) LIST OF AUTHORIZED FACILITIES AND SERVICES The CFD is authorized to finance, in whole or in part, the following facilities and services: Authorized Facilities, Including Fees Financing Facilities In accordance with the Act, the CFD is authorized to finance the purchase, construction, expansion, improvement, or rehabilitation of any real or other tangible property with an estimated useful life of five years or longer, together with the planning and design work that is directly related to the purchase, construction, expansion, or rehabilitation of any real or tangible property (collectively, the "Facilities"). By way of example and not limitation, the CFD may fund any of the following: roadways and roadway improvements, traffic signals, regional hiking and biking trails, storm drains and basins, water and wastewater facilities (including, without limitation, domestic and non -domestic water facilities, wells, pre-treatment basins, infiltration basins, reservoirs, pipelines, storm and sewer drains and related infrastructure and improvements), wet and dry utilities, bridges and pedestrian bridges, tunnels, parks sites, park facilities and equipment, open space, school sites, school facilities and equipment, facilities and equipment relating to fire protection and suppression, facilities and equipment relating to police protection services, animal control facilities, library facilities and equipment, general government facilities, and related infrastructure improvements, both onsite and offsite, and all appurtenances and appurtenant work in connection with the foregoing (including utility line relocations and electric, gas and cable utilities). The Facilities may be constructed and installed by the City of Dublin ("City"), County of Alameda ("County"), Zone 7 Water Agency, Dublin San Ramon Services District, Dublin Unified School District or other local agency and/or acquired by the City, County, Zone 7 Water Agency, Dublin San Ramon Services District, or other local agency from private parties that construct the Facilities. Authorized Facilities also include the prepayment of overlapping community facilities district and assessment district liens. Authorized Facilities include facilities financed by development impact fees paid and not otherwise reimbursed, whether levied by the City, County, Zone 7 Water Agency, Dublin San Ramon Services District, Dublin Unified School District or other local agency. Authorized Services The CFD is authorized to finance each and every service authorized to be financed under the Act (collectively, the "Services.") By way of example and not limitation, the CFD may fund any of the following: furnishing, operating, maintaining and repairing equipment, apparatus or facilities related to providing the Services and/or equipment, apparatus, facilities or fixtures in areas to be maintained or repaired, paying the salaries and benefits A-1 108 Attachment 1 of personnel necessary or convenient to provide the Services, payment of insurance costs and other related expenses and the provision of reserves for repairs and replacements and for the future provision of Services. "Maintenance" shall include replacement, and the creation and funding of a reserve fund to pay for a replacement. It is expected that the Services will be provided by the City, either with its own employees or by contract with third parties, or any combination thereof. Administrative and Incidental Expenses In addition to the above Facilities, other incidental expenses as authorized by the Mello Roos Community Facilities Act of 1982, include these: the cost of planning, permitting, engineering, and designing the facilities (including the cost of environmental evaluation, orthophotography, and environmental remediation/mitigation); land acquisition and easement payments for authorized CFD facilities; project management; construction staking; engineering studies and preparation of an engineer's report; utility relocation and demolition costs incidental to construction of the facilities financed through the CFD; determination of the amount of taxes and collection of taxes; payment of taxes; costs otherwise incurred to carry out the authorized purposes of the CFD, including the issuance of bonds; reimbursements to other areas for infrastructure facilities or planning purposes serving development in the CFD; and any other expenses incidental to the construction, completion, and inspection of the facilities. In addition, the CFD shall fund the direct and indirect expenses incurred by the City, County or any other local agency in carrying out its duties with respect to the CFD including, but not limited to: 1. The levy and collection of the special taxes. 2. The fees and expenses of attorneys and consultants. 3. Any fees related to the collection of the special taxes. 4. An allocable share of the salaries and benefits of any City staff, or consultant fees, directly related thereto and a proportionate amount of the City's general administrative overhead related thereto. 5. Any amounts paid by the City with respect to the CFD. 6. Expenses incurred in undertaking action to foreclose on properties for which the payment of special taxes is delinquent. 7. Administrative fees of the City and the bond trustee or fiscal agent related to the CFD and the bonds issued by or for the CFD. 8. Costs related to the formation of the CFD. A-2 109 Attachment 1 9. Reimbursement of costs related to the formation of the CFD advanced by the City, the landowner(s) in the CFD or any party related to any of the foregoing, as well as reimbursement of any costs advanced by the City, the landowner(s) in the CFD or any party related to any of the foregoing, for facilities, fees or other purposes or costs of the CFD. 10. Costs related to the issuance of bonds by or for the CFD, including underwriters discount, reserve fund, capitalized interest, letter of credit fees and expenses, fees and expenses of bond counsel, disclosure counsel, special tax consultant, municipal advisor and appraiser, bond remarketing costs, and all other incidental expenses. 11. All other costs and expenses of the City in any way related to the CFD. A-3 110 Attachment 1 EXHIBIT B CITY OF DUBLIN COMMUNITY FACILITIES DISTRICT NO. 2023-1 (EAST RANCH) COST ESTIMATES FACILITIES The following is a summary of the estimated costs of acquisition and construction of the Facilities, including Facilities that could potentially be funded by the CFD based on the amount of fees that may be paid for each facility type. In addition to the acquisition and construction costs of the Facilities, the CFD will finance bond and other debt issuance costs, capitalized interest, a debt service reserve fund, the costs of forming the CFD and other costs associated with the sale of bonds and annual administration of the CFD. All costs are reflected in fiscal year 2023-24 dollars. City Improvements Grading and Street Work Concrete Work Storm Drain Work Total City Improvements Other Agency Improvements Dublin San Ramon Service District Sanitary Sewer Work $4,447,473 Water System Work $3,000,325 Total Other Improvements $7,447,798 Estimated Cost $12,298,564 $6,735,114 $8,018,544 $27,052,222 Estimated Cost TOTAL ESTIMATED ELIGIBLE FACILITIES $34,500,020 City Fees Estimated Cost Eastern Dublin Freeway Interchange Fee $207,237 Eastern Dublin Transportation Impact Fee $7,061,692 Fire Impact Fee $498,510 Public Facility Impact Fee $3,887,805 Tri-Valley Transportation Fee $2,586,207 Total City Impact Fees $14,241,451 B-1 111 Attachment 1 Other Agency Fees Alameda County — Zone 7 Water Agency Zone 7 Drainage Fee Zone 7 Water Connection Dublin San Ramon Service District Sewer Connection Water Connection Dublin Unified School District School District Fee Total Other Agency Impact Fees TOTAL ESTIMATED ELIGIBLE FEES SERVICES Estimated Cost $1,375,200 $16,869,120 $8,464,522 $10,005,153 $13,419,368 $50,133,363 $64,374,814 The estimated cost of Services in fiscal year 2023-24 dollars is $211,455. In addition to paying directly for Services costs, the CFD will pay costs associated with annual administration of the CFD. B-2 112 Attachment 1 EXHIBIT C CITY OF DUBLIN COMMUNITY FACILITIES DISTRICT NO. 2023-1 (EAST RANCH) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX 113 Attachment 1 CITY OF DUBLIN COMMUNITY FACILITIES DISTRICT No. 2023-1 (EAST RANCH) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES Special Taxes applicable to each Assessor's Parcel in the City of Dublin Community Facilities District No. 2023-1 (East Ranch) shall be levied and collected according to the tax liability determined by the City Council through the application of the appropriate amount or rate for Taxable Property, as described below. All of the property in the CFD, unless exempted by law or by the provisions of Section G below, 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 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 or other parcel map recorded at the County Recorder's Office. "Act" means the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311), 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 or trustee (including any fees or expenses of its counsel) employed in connection with any Bonds, and the expenses of the City in carrying out its duties with respect to the CFD and the Bonds, including, but not limited to, the levy and collection of Special Taxes, the fees and expenses of its counsel, charges levied by the County in connection with the levy and collection of Special Taxes, costs related to property owner inquiries regarding the Special Taxes, costs associated with appeals or requests for interpretation associated with the Special Taxes and this RMA, amounts needed to pay rebate to the federal government with respect to Bonds, costs associated with complying with continuing disclosure requirements for the City and any major property owners or other obligated parties, costs associated with foreclosure and collection of delinquent Special Taxes, and all other costs and expenses of the City in any way related to the establishment or administration of the CFD. "Administrator" shall mean the person or firm designated by the City to administer the Special Taxes according to this RMA. "Affordable Housing Unit" means any Residential Unit on a Parcel of Developed Property for which a deed restriction has been recorded on title of the property that limits the rental rate or sales price or otherwise restricts the affordability of the Residential Unit or income of its occupants. It is incumbent upon the builder, developer, or property owner to make the Administrator aware of such deed restriction. Residential Units on Welfare Exemption Property shall be categorized as Welfare Exemption Property for purposes of this RMA, not as Affordable Housing Units. East Ranch CFD No. 2023-1 1 October 25, 2023 114 Attachment 1 "Assessor's Parcel" or "Parcel" means a lot or parcel shown on an Assessor's Parcel Map with an assigned Assessor's Parcel number. "Assessor's Parcel Map" means an official map of the County Assessor designating Parcels by Assessor's Parcel number. "Authorized Facilities" means the public facilities authorized to be financed, in whole or in part, by the CFD. "Authorized Services" means the public services authorized to be funded, in whole or in part, by the CFD. "Average Sales Price" means the weighted average sales price for all Residential Units within a particular Tax Zone that have sold within the past 6 months or are expected to sell in a normal marketing environment, and shall not include Affordable Housing Units or Residential Units that are sold at a discount for the purpose of stimulating initial sales activity. The sales price shall include the actual sales price of the Residential Units within the respective Tax Zone that have sold within the past 6 months or are expected to sell in a normal marketing environment including, but not limited to, options, upgrades, and premiums. "Base Facilities Special Tax" means, for any Land Use Category, the applicable Special Tax initially identified in Table 1 of Section C, as may be adjusted pursuant to Section D herein. "Bonds" means bonds or other debt (as defined in the Act), whether in one or more series, secured by the Facilities Special Tax and issued or assumed by the CFD to fund Authorized Facilities. "Building Permit" means a permit that allows for vertical construction of a building or buildings, which shall not include a separate permit issued for construction of the foundation thereof. "Capitalized Interest" means funds in any capitalized interest account available to pay debt service on Bonds. "CFD" means the City of Dublin Community Facilities District No. 2023-1 (East Ranch). "CFD Formation" means the date on which the Resolution of Formation to form the CFD was adopted by the City Council. "City" means the City of Dublin. "City Council" means the City Council of the City of Dublin, acting as the legislative body of CFD No. 2023-1. "County" means the County of Alameda. "Developed Property" means, in any Fiscal Year, all Parcels of Taxable Property that are not Taxable Owners Association Property, Taxable Public Property, or Taxable Welfare Exemption East Ranch CFD No. 2023-1 2 October 25, 2023 115 Attachment 1 Property for which a Building Permit for new construction was issued prior to June 1 of the preceding Fiscal Year. "Development Class" means, individually, Developed Property, Final Map Property, Undeveloped Property, Taxable Owners Association Property, Taxable Welfare Exemption Property, and Taxable Public Property. "Exempt Affordable Units Parcel" means the Parcel in the CFD on which all Residential Units are expected to be Affordable Housing Units and, therefore, such Parcel (or Parcels once subdivided) is exempt from the levy of the Special Taxes unless and until Residential Units constructed on such Parcel(s) no longer have a deed restriction making them Affordable Units. The Exempt Affordable Units Parcel is identified in Attachment 1 hereto. Such exemption shall apply to the Parcel once it becomes a stand-alone Assessor's Parcel, whether such Parcel is Developed Property or Undeveloped Property, as defined herein. "Expected Land Uses" means, for any Tax Zone, the number of Residential Units and the acreage of Other Property expected within the CFD at CFD Formation, as identified in Attachments 1 and 2 of this RMA. Pursuant to Section D of this RMA, the Administrator shall update Attachment 2 each time there is a Land Use Change. Such update shall be maintained internally by the Administrator and shall not require recordation of an amended RMA. "Expected Maximum Facilities Special Tax Revenues" means the aggregate Facilities Special Tax that can be levied based on application of the Base Facilities Special Tax to the Expected Land Uses. The Expected Maximum Facilities Special Tax Revenues at CFD Formation are shown in Attachment 2 and may be revised pursuant to Section D and H below. "Facilities Special Tax" means a special tax levied in any Fiscal Year on Parcels in the CFD to pay the Facilities Special Tax Requirement. "Facilities Special Tax Requirement" means the amount necessary in any Fiscal Year (i) to pay principal and interest on Bonds which are due in the calendar year which begins in such Fiscal Year, (ii) to replenish reserve funds to the extent such replenishment has not been included in a computation of the Facilities Special Tax Requirement in a previous Fiscal Year, (iii) to cure any delinquencies in the payment of principal or interest on Bonds which have occurred in the prior Fiscal Year, (iv) to pay Administrative Expenses, and (v) to pay the costs of Authorized Facilities to be funded directly from Facilities Special Tax proceeds to the extent that paying directly for such costs does not increase the Facilities Special Taxes levied on Final Map Property or Undeveloped Property. The amounts referred to in clauses (i) and (ii) of the preceding sentence may be reduced in any Fiscal Year by (i) interest earnings on or surplus balances in funds and accounts for Bonds to the extent that such earnings or balances are available to apply against debt service pursuant to the Indenture, (ii) proceeds from the collection of penalties associated with delinquent Facilities Special Taxes, and (iii) any other revenues available to pay debt service on the Bonds as determined by the Administrator. "Final Map" means a final map, or portion thereof, approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq) that creates SFD Lots. The term "Final Map" shall not include any large -lot subdivision map, Assessor's Parcel Map, or East Ranch CFD No. 2023-1 3 October 25, 2023 116 Attachment 1 subdivision map or portion thereof, that does not create SFD Lots, including Assessor's Parcels that are designated as remainder parcels. "Final Map Property" means, in any Fiscal Year, all SFD Lots created within Final Maps that had recorded prior to June 1 of the preceding Fiscal Year and which have not yet become Developed Property. "First Bond Sale" means issuance of the first series of Bonds secured, in whole or in part, by Facilities Special Taxes levied and collected from Parcels of Taxable Property in the CFD. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Improvement Fund" means the account (regardless of its name) identified in the Indenture to hold funds that are available for expenditure to acquire or construct Authorized Facilities or to pay eligible impact fees. "Indenture" means the bond indenture, fiscal agent agreement, trust agreement, resolution 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. "Land Use Category" means, individually, Single Family Property or Other Property. Affordable Housing Units shall be considered a separate Land Use Category for purposes of this RMA. "Land Use Change" means a proposed or approved change to the Expected Land Uses after CFD Formation. "Master Developer" means TH East Ranch Dublin, LLC, a California limited liability company, and its successors and assigns. "Maximum Facilities Special Tax" means the greatest amount of Facilities Special Tax that can be levied on a Parcel in any Fiscal Year as determined in accordance with Sections C and D below. "Maximum Services Special Tax" means the greatest amount of Services Special Tax that can be levied on a Parcel in any Fiscal Year, as determined in accordance with Section C below. "Maximum Special Tax" means, as the context requires, either or both of the Maximum Facilities Special Tax and Maximum Services Special Tax. "Other Property" means any Parcel of Taxable Property in the CFD that does not fit within the definition of Single Family Property, Affordable Housing Unit, Taxable Owners Association Property, Taxable Public Property, or Taxable Welfare Exemption Property. "Owners Association" means a homeowners association or property owners association that provides services to, and collects assessments, fees, dues, or charges from, property within the CFD. East Ranch CFD No. 2023-1 4 October 25, 2023 117 Attachment 1 "Owners Association Property" means any property within the boundaries of the CFD that is owned in fee or through easement by the Owners Association, not including any such property that is located directly under a residential structure. "Price Point Consultant" means any consultant or firm selected by the City that: (a) has substantial experience in performing price point studies for Residential Units within community facilities districts or otherwise estimating or confirming pricing for Residential Units in community facilities districts; (b) has recognized expertise in analyzing economic and real estate data that relates to the pricing of Residential Units in community facilities districts; (c) is independent and not under the control of the City or any developer of Parcels in the CFD; (d) does not have any substantial interest, direct or indirect, with or in: (i) the CFD, (ii) the City, or (iii) any owner of real property in the CFD; and (e) is not connected with the City as an officer or employee thereof, but who may be regularly retained to make reports to the City. "Price Point Study" means a price point study or letter updating a previous price point study prepared by the Price Point Consultant pursuant to Section D herein. For each Tax Zone in the CFD, the price point study shall analyze Residential Units with similar density, lot sizes, square footage ranges, and product type as the Residential Units within that Tax Zone and excluding Affordable Housing Units. The Master Developer will be provided the opportunity to review and comment on the draft price point study before a final version is presented to the City. "Proportionately" means, for each Development Class, that the ratio of the actual Special Tax levied in any Fiscal Year to the Maximum Special Tax authorized to be levied in that Fiscal Year is equal for all parcels assigned to the Development Class. "Public Property" means any property within the boundaries of the CFD that is owned by the City, County, federal government, State of California, or other public agency. "Required Coverage" means the amount by which the Expected Maximum Facilities Special Tax Revenues must exceed the Bond debt service and priority Administrative Expenses (if any), as set forth in the Indenture, Certificate of Special Tax Consultant, or other formation or bond document that sets forth the minimum required debt service coverage. "Residential Unit" means an SFD Unit or an individual residential unit within a duplex, halfplex, triplex, fourplex, townhome, live/work or condominium structure. A second unit (granny flat) that shares a Parcel with an SFD Unit shall not be considered a Residential Unit for purposes of levying the Special Taxes. "RMA" means this Rate and Method of Apportionment of Special Taxes. "Services Special Tax" means a special tax levied in any Fiscal Year on Parcels in the CFD to pay the Services Special Tax Requirement. "Services Special Tax Requirement" means the amount of revenue needed in any Fiscal Year to pay for: (i) Authorized Services, (ii) Administrative Expenses, and (iii) amounts needed to cure delinquencies in the payment of Services Special Taxes which have occurred in the prior Fiscal Year. In any Fiscal Year, the Services Special Tax Requirement shall be reduced by surplus East Ranch CFD No. 2023-1 5 October 25, 2023 118 Attachment 1 amounts available (as determined by the City) from the levy of the Services Special Tax in prior Fiscal Years, including revenues from collection of delinquent Services Special Taxes and associated penalties and interest. "SFD Lot" means an individual residential lot, identified and numbered on a recorded Final Map, on which a Building Permit has been or is permitted to be issued for construction of an SFD Unit without further subdivision of the lot and for which no further subdivision of the lot is anticipated pursuant to an approved Tentative Map. "SFD Unit" means a residential dwelling unit that does not share a common wall with another residential dwelling unit. "Single Family Property" means, in any Fiscal Year, all Parcels of Taxable Property for which a Building Permit was or is expected to be issued for: (i) construction of an SFD Unit, or (ii) construction of a residential structure consisting of two or more Residential Units that share common walls, have separate Assessor's Parcel numbers assigned to them (except for a duplex unit, which may share an Assessor's Parcel with another duplex unit), and may be purchased by individual homebuyers (which shall still be the case even if the Residential Units are purchased and subsequently offered for rent by the owners of the Residential Units), including such residential structures that meet the statutory definition of a condominium contained in Civil Code Section 1351. "Special Taxes" means the Facilities Special Tax and Services Special Tax. "Tax Zone" means a geographic area within which a particular Maximum Facilities Special Tax rate may be levied pursuant to this RMA, as identified in Attachment 1 hereto. "Taxable Owners Association Property" means, in any Fiscal Year after the First Bond Sale, any Parcel of Owners Association Property that satisfies all three of the following conditions: (i) the Parcel had not been Owners Association Property on the date of the First Bond Sale; (ii) based on reference to Attachments 1 and 2 (as may be updated pursuant to Section D below), the Parcel was not anticipated to be Owners Association Property as determined by the Administrator; and (iii) if the Parcel were to be exempt from the Facilities Special Tax because it is Owners Association Property, the Expected Maximum Facilities Special Tax Revenues would be reduced to a point at which Required Coverage could not be maintained. "Taxable Property" means all of the Parcels within the boundaries of the CFD that are not exempt from the Special Taxes pursuant to law or Section G below. "Taxable Public Property" means in any Fiscal Year after the First Bond Sale, any Parcel of Public Property that satisfies all three of the following conditions: (i) the Parcel had not been Public Property on the date of the First Bond Sale; (ii) based on reference to Attachments 1 and 2 (as may be updated pursuant to Section D below), the Parcel was not anticipated to be Public Property as determined by the Administrator; and (iii) if the Parcel were to be exempt from the Facilities Special Tax because it is Public Property, the Expected Maximum Facilities Special Tax Revenues would be reduced to a point at which Required Coverage could not be maintained. East Ranch CFD No. 2023-1 6 October 25, 2023 119 Attachment 1 "Taxable Welfare Exemption Property" means in any Fiscal Year after the First Bond Sale, any Parcel of Welfare Exemption Property that satisfies all three of the following conditions: (i) the Parcel had not been Welfare Exemption Property on the date of issuance of the First Bond Sale; (ii) based on reference to Attachments 1 and 2 (as may be updated pursuant to Section D below), the Parcel was not anticipated to be Welfare Exemption Property based on the Expected Land Uses, as determined by the Administrator; and (iii) if the Parcel were to be exempt from the Facilities Special Tax because it has become Welfare Exemption Property, the Expected Maximum Facilities Special Tax Revenues would be reduced to a point at which Required Coverage could not be maintained. "Tentative Map" means a tentative map or substantial conformance exhibit for property in the CFD, including any adjustments or amendments thereto. "Total Tax Burden" means, for Single Family Property, that the Special Taxes, together with ad valorem property taxes, special assessments, special taxes for any overlapping community facilities districts, or any other taxes, fees and charges which would be collected by the County on property tax bills for a Residential Unit with an assessed value equal to the Average Sales Price, and which are payable from and secured by the property assuming such Residential Unit had been completed, sold, and subject to such levies and impositions, excluding service charges such as sewer and trash, and voluntary assessments such as those associated with a Property Assessed Clean Energy program. "Undeveloped Property" means, in any Fiscal Year, all Parcels of Taxable Property that are not Final Map Property, Developed Property, Taxable Owners Association Property, Taxable Public Property, or Taxable Welfare Exemption Property as defined herein. "Welfare Exemption Property" means, in any Fiscal Year, any Parcels in the CFD that have received a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code and for which such welfare exemption is still in place. B. DATA FOR ADMINISTRATION OF THE SPECIAL TAXES Each Fiscal Year, the Administrator shall: (i) assign each Parcel of Taxable Property to the appropriate Tax Zone and the appropriate Development Class; (ii) for Developed Property, categorize each Parcel as Single Family Property, an Affordable Housing Unit, or Other Property; and (iii) determine the Facilities Special Tax Requirement and the Services Special Tax Requirement for the Fiscal Year. In addition, the Administrator shall, on an ongoing basis, monitor the Tentative Map, Final Maps, and Building Permits to determine if there are any proposed Land Use Changes that would change the Expected Maximum Facilities Special Tax Revenues. If the Expected Maximum Facilities Special Tax Revenues will be revised pursuant to a proposed Land Use Change, the Administrator shall apply the steps set forth in Section D below. In any Fiscal Year, if it is determined that: (i) a parcel map for property in the CFD was recorded after January 1 of the prior Fiscal Year (or any other date after which the Assessor will not incorporate the newly -created Parcels into the then current tax roll), (ii) because of the date the parcel map was recorded, the Assessor does not yet recognize the new Parcels created by the parcel East Ranch CFD No. 2023-1 7 October 25, 2023 120 Attachment 1 map, and (iii) one or more of the newly -created Parcels is in a different Development Class than other Parcels created by the subdivision, the Administrator shall calculate the Special Taxes for the property affected by recordation of the parcel map by determining the Special Taxes that apply separately to the property within each Development Class, then applying the sum of the individual Special Taxes to the Parcel that was subdivided by recordation of the parcel map. C. MAXIMUM SPECIAL TAXES 1. Facilities Special Tax: Developed Property and Final Map Property The Maximum Facilities Special Tax for a Parcel of Developed Property is the greater of: (i) the Base Facilities Special Tax set forth in Table 1 below, or (ii) the Maximum Facilities Special Tax determined pursuant to Section D. Table 1 Base Facilities Special Tax Developed Property and Final Map Property Tax Zone and Land Use Category Tax Zone 1 Single Family Property Affordable Housing Units Other Property Tax Zone 2 Single Family Property Affordable Housing Units Other Property Tax Zone 3 Single Family Property Affordable Housing Units Other Property Tax Zone 4 Single Family Property Affordable Housing Units Other Property Tax Zone 5 Single Family Property Affordable Housing Units Other Property Tax Zone 6 Single Family Property Affordable Housing Units Other Property Base Facilities Special Tax Fiscal Year 2023-24 * $5,850 per Residential Unit or SFD Lot $0 per Residential Unit $28,741 per Acre $4,600 per Residential Unit or SFD Lot $0 per Residential Unit $35,934 per Acre $4,400 per Residential Unit or SFD Lot $0 per Residential Unit $28,679 per Acre $3,750 per Residential Unit or SFD Lot $0 per Residential Unit $33,034 per Acre $3,300 per Residential Unit or SFD Lot $0 per Residential Unit $37,882 per Acre $2,000 per Residential Unit or SFD Lot $0 per Residential Unit $38,373 per Acre * On July 1, 2024, and on each July 1 thereafter, all figures shown in Table 1 above shall be increased by an amount equal to 2.0% of the amount in effect for the prior Fiscal Year. East Ranch CFD No. 2023-1 8 October 25, 2023 121 Attachment 1 2. Facilities Special Tax: Undeveloped Property, Taxable Owners Association Property, Taxable Welfare Exemption Property, and Taxable Public Property Table 2 below identifies the Maximum Facilities Special Tax for Parcels of Undeveloped Property, Taxable Owners Association Property, Taxable Welfare Exemption Property, and Taxable Public Property in each Tax Zone. Table 2 Maximum Facilities Special Tax for Undeveloped Property, Taxable Owners Association Property, Taxable Welfare Exemption Property, and Taxable Public Property Tax Zone Tax Zone 1 Tax Zone 2 Tax Zone 3 Tax Zone 4 Tax Zone 5 Tax Zone 6 Maximum Facilities Special Tax (Fiscal Year 2023-24)* $28,741 per Acre $35,934 per Acre $28,679 per Acre $33,034 per Acre $37,882 per Acre $38,373 per Acre * On July 1, 2024 and on each July 1 thereafter, all dollar amounts shown in Table 2 above shall be increased by an amount equal to 2.0% of the amount in effect for the prior Fiscal Year. 3. Services Special Tax: Developed Property and Final Map Property The Maximum Services Special Tax for Parcels of Developed Property and Final Map Property is $381 per Residential Unit or SFD Lot in Fiscal Year 2023-24. Notwithstanding the foregoing, the Maximum Services Special Tax shall not be levied on Affordable Housing Units. On July 1, 2024 and on each July 1 thereafter, the Maximum Services Special Tax shall be increased by an amount equal to 4.0% of the amount in effect for the prior Fiscal Year. 4. Services Special Tax: Undeveloped Property Table 3 below identifies the Maximum Services Special Tax for Parcels of Undeveloped Property in each Tax Zone. Table 3 Maximum Services Special Tax for Undeveloped Property Maximum Services Special Tax Tax Zone (Fiscal Year 2023-24)* Tax Zone 1 $1,872 per Acre Tax Zone 2 $2,636 per Acre Tax Zone 3 $2,484 per Acre Tax Zone 4 $3,356 per Acre Tax Zone 5 $4,373 per Acre Tax Zone 6 $7,316 per Acre * On July 1, 2024 and on each July 1 thereafter, all dollar amounts shown in Table 3 above shall be increased by an amount equal to 4.0% of the amount in effect for the prior Fiscal Year. East Ranch CFD No. 2023-1 9 October 25, 2023 122 Attachment 1 D. CHANGES TO THE MAXIMUM FACILITIES SPECIAL TAX Pursuant to this Section D, the Administrator may from time to time update Attachment 2 to reflect revised Expected Maximum Facilities Special Tax Revenues. Such update shall be maintained internally by the Administrator and shall not require recordation of an amended RMA. 1. Land Use Changes The Expected Maximum Facilities Special Tax Revenues shown in Attachment 2 were originally calculated based on the Expected Land Uses at CFD Formation. Attachment 2 is subject to modification upon the occurrence of Land Use Changes, as described below. The Administrator shall review all Land Use Changes and compare the revised land uses to the Expected Land Uses to evaluate the impact on the Expected Maximum Facilities Special Tax Revenues. Prior to the First Bond Sale, if a Land Use Change is proposed or identified that will result in a change in the Expected Maximum Facilities Special Tax Revenues, no action will be needed pursuant to this Section D. Upon approval of the Land Use Change, the Administrator shall update Attachment 2 to show the revised Expected Maximum Facilities Special Tax Revenues. After the First Bond Sale, if a Land Use Change is proposed or identified, Steps 1 through 3 below must be applied: Step 1: Step 2: By reference to Attachment 2 (which shall be updated by the Administrator each time a Land Use Change has been processed according to this Section D or a partial prepayment has been made), the Administrator shall identify the Expected Maximum Facilities Special Tax Revenues prior to the Land Use Change. The Administrator shall calculate the Expected Maximum Facilities Special Tax Revenues that could be collected from Taxable Property in the CFD after the Land Use Change based on application of the Base Facilities Special Taxes from Table 1. Step 3: If the revenues calculated in Step 2 are (i) higher than those determined in Step 1 or (ii) less than those calculated in Step 1, but the reduction in Expected Maximum Facilities Special Tax Revenues does not reduce debt service coverage on outstanding Bonds below Required Coverage, no further action is needed, and the Administrator shall update Attachment 2 to show the revised Expected Maximum Facilities Special Tax Revenues. If the revenues calculated in Step 2 are less than those calculated in Step 1, and the Administrator determines that the reduction in Expected Maximum Facilities Special Tax Revenues would reduce debt service coverage on outstanding Bonds below the Required Coverage, one of the following shall occur: 3.a. The landowner requesting the Land Use Change (the "Requesting Landowner") may make a prepayment in an amount that will ensure that the reduced Expected Maximum Facilities Special Tax Revenues are sufficient to East Ranch CFD No. 2023-1 10 October 25, 2023 123 Attachment 1 provide Required Coverage, as determined pursuant to Section H below. If the Requesting Landowner notifies the Administrator that he/she would like to remedy the reduction by making a prepayment, such prepayment must be made by the earlier of (i) 30 days from the date of delivery of the prepayment estimate or (ii) the date of issuance of any Building Permits for any Parcel owned by the Requesting Landowner that was Final Map Property or Undeveloped Property at the time the Administrator prepared the prepayment estimate, or 3.b. If a prepayment is not received by the due date specified above, the Base Facilities Special Tax used to determine the Maximum Facilities Special Tax for each Parcel of Taxable Property in the area affected by the Land Use Change shall be increased proportionately until the Expected Maximum Facilities Special Tax Revenues are sufficient to maintain Required Coverage. If multiple Land Use Changes are proposed simultaneously by a single landowner (which may include approval of multiple Final Maps at one time), and the landowner requests that the impact of two or more of the Land Use Changes be considered together, the Administrator shall consider the combined effect of the Land Use Changes to determine if there is a reduction in Expected Maximum Facilities Special Tax Revenues. If there is a reduction that would reduce debt service coverage below the Required Coverage, and no prepayment has been received, then the Base Facilities Special Tax used to determine the Maximum Facilities Special Tax for each Parcel of Taxable Property in the areas affected by the Land Use Changes shall be increased proportionately until the aggregate amount that can be levied within such areas is equal to the amount that could have been levied prior to the proposed Land Use Changes. If Land Use Changes are proposed simultaneously by multiple landowners, or if an individual landowner proposing multiple Land Use Changes does not request that such Land Use Changes be considered together, the Administrator shall consider the proposed Land Use Changes individually. Notwithstanding the foregoing, once a certificate of occupancy has been issued for a Residential Unit on a Parcel, the Maximum Facilities Special Tax for the Parcel cannot be increased because of subsequent Land Use Changes that may occur within the area in which the Parcel is located. The duties imposed on the Administrator pursuant to this Section D to review Land Use Changes, and to review Final Maps and make certain calculations, are intended only to facilitate the administration of the Facilities Special Tax and to better assure the sufficiency of tax capacity to pay debt service on Bonds. Such duties are not intended to give any developer, subdivider, or owner of property the right to receive notice of the potential impact of Land Use Changes on the Facilities Special Tax applicable to a Parcel; and each developer, subdivider, or owner of property whose property is the subject of a Land Use Change shall be responsible for understanding the impact thereof on the Facilities Special Tax applicable to such property. 2. Partial Prepayments If a Parcel makes a partial prepayment pursuant to Section H below, the Administrator shall recalculate the Maximum Facilities Special Tax for the Parcel pursuant to Section H.2. In addition, the Administrator shall update Attachment 2 to reflect the prepayment and the revised Expected Maximum Facilities Special Tax Revenues for the CFD. After the prepayment has been received, East Ranch CFD No. 2023-1 11 October 25, 2023 124 Attachment 1 the application of Sections D, E, and H of this RMA shall be based on the adjusted Expected Maximum Facilities Special Tax Revenues after the prepayment. 3. Conversion of a Parcel to a Taxable Land Use If, in any Fiscal Year, an Affordable Housing Unit, the Exempt Affordable Units Parcel, or a Parcel of Public Property, Welfare Exemption Property, or Owners Association Property that had been exempt from the Special Taxes is converted to Single Family Property or Other Property, such Parcel shall be subject to the levy of Special Taxes. The Maximum Special Taxes for each such Parcel shall be determined based on the applicable Land Use Category for the Parcel, as determined by the Administrator. In addition, the Administrator shall update Attachment 2 to reflect the revised Expected Land Uses and Expected Maximum Facilities Special Tax Revenues for the CFD. 4. Increase in Affordable Housing Units If, prior to the First Bond Sale, the Administrator determines that there is an increase in the number of Affordable Housing Units expected within any Tax Zone, the Administrator shall update the Expected Land Uses and Expected Maximum Facilities Special Tax Revenues in Attachment 2, and the additional Affordable Housing Units will be exempt from the Special Taxes. If, at any time after the First Bond Sale, additional Affordable Housing Units are proposed, and if the addition of the new Affordable Housing Units will decrease the Expected Maximum Facilities Special Tax Revenues to a point at which Required Coverage cannot be maintained, the Administrator shall calculate the Maximum Facilities Special Tax that must be assigned to each of the new Affordable Housing Units to maintain Required Coverage. The Maximum Facilities Special Tax assigned to the new Affordable Housing Units shall be escalated each Fiscal Year by an amount equal to 2.0% of the amount in effect for the prior Fiscal Year. 5. Transfer of Expected Maximum Facilities Special Tax Revenues Among Tax Zones The Expected Maximum Facilities Special Tax Revenues were determined for each Tax Zone based on the Expected Land Uses within that Tax Zone. If the expected number of Residential Units or the expected acres of Other Property is transferred from one Tax Zone to another, the City may, in its sole discretion, allow for a corresponding transfer of Expected Maximum Facilities Special Tax Revenues between the Tax Zones. Such a transfer shall only be allowed if (i) all adjustments are agreed to in writing by the affected property owners and the City, and (ii) there is no reduction in the total Expected Maximum Facilities Special Tax Revenues as a result of the transfer. After such a transfer, the Administrator shall update Attachment 2 to reflect the revised Expected Maximum Facilities Special Tax Revenues for each Tax Zone. 6. Reduction in Maximum Facilities Special Tax The Base Facilities Special Tax for one or more Tax Zones shall be reduced prior to the First Bond Sale if the City reasonably determines based on a Price Point Study that, without a reduction in the Base Facilities Special Tax for Residential Units within those Tax Zone(s), the Total Tax Burden will exceed 1.58% of the Average Sales Price. Such determination shall be made by the City hiring, at the CFD's expense, a Price Point Consultant to prepare a Price Point Study to confirm the Average Sales Price for Residential Units within each Tax Zone. If, based on the Price Point East Ranch CFD No. 2023-1 12 October 25, 2023 125 Attachment 1 Study, the Administrator calculates that the Total Tax Burden for Residential Units within one or more Tax Zones will exceed 1.58% of the Average Sales Price, the Administrator and the City shall meet with the Master Developer to discuss the findings, after which point the Administrator shall reduce the Base Facilities Special Tax to the point at which the Total Tax Burden on Residential Units in each Tax Zone in the CFD is equal to 1.58% of the Average Sales Price for such Residential Units. Any such reduction shall occur at least 60 days prior to the First Bond Sale. The Base Facilities Special Taxes set forth in Table 1 may also be (i) disproportionately reduced prior to the First Bond Sale, but not to a level that exceeds the 1.58% described in the previous paragraph, so long as the Master Developer is the owner of all Parcels in the CFD and requests a reduction in the Base Facilities Special Taxes, or (ii) proportionately or disproportionately reduced prior to the First Bond Sale, but not to a level that exceeds the 1.58% described in the previous paragraph, if the owner of any Parcel in the CFD requests a reduction in the Base Facilities Special Taxes and the owners of all Parcels in the CFD consent to such reduction by unanimous vote. Any such reduction shall occur at least 60 days prior to the First Bond Sale. The Base Facilities Special Tax reductions permitted pursuant to this paragraph shall be reflected in an Amended Notice of Special Tax Lien, which the Administrator shall cause to be recorded. If, based on the Price Point Study, the Administrator determines that the Total Tax Burden will not exceed 1.58% of the Average Sales Price, then there shall be no change in the Base Facilities Special Tax for Residential Units unless so requested by the Master Developer. E. METHOD OF LEVY OF THE SPECIAL TAXES 1. Facilities Special Tax Each Fiscal Year, the Administrator shall determine the Facilities Special Tax Requirement to be collected in that Fiscal Year. A Facilities Special Tax shall then be levied according to the following steps: Step 1: The Facilities Special Tax shall be levied Proportionately on each Parcel of Developed Property up to 100% of the Maximum Facilities Special Tax for each Parcel of Developed Property until the amount levied is equal to the Facilities Special Tax Requirement prior to applying any Capitalized Interest that is available in the CFD accounts. Step 2: If additional revenue is needed after Step 1 in order to meet the Facilities Special Tax Requirement after Capitalized Interest has been applied to reduce the Facilities Special Tax Requirement, the Facilities Special Tax shall be levied Proportionately on each Parcel of Final Map Property up to 100% of the Maximum Facilities Special Tax for each Parcel of Final Map Property until the amount levied is equal to the Facilities Special Tax Requirement. Step 3: If additional revenue is needed after Step 2, the Facilities Special Tax shall be levied Proportionately on each Parcel of Undeveloped Property up to 100% of the East Ranch CFD No. 2023-1 13 October 25, 2023 126 Attachment 1 Maximum Facilities Special Tax for each Parcel of Undeveloped Property until the amount levied is equal to the Facilities Special Tax Requirement. Step 4: If additional revenue is needed after Step 3, the Facilities Special Tax shall be levied Proportionately on each Parcel of Taxable Welfare Exemption Property, up to 100% of the Maximum Facilities Special Tax for each Parcel of Taxable Welfare Exemption Property for such Fiscal Year until the amount levied is equal to the Facilities Special Tax Requirement. Step 5: If additional revenue is needed after Step 4, the Facilities Special Tax shall be levied Proportionately on each Parcel of Taxable Owners Association Property, up to 100% of the Maximum Facilities Special Tax for each Parcel of Taxable Owners Association Property until the amount levied is equal to the Facilities Special Tax Requirement. Step 6: If additional revenue is needed after Step 5, the Facilities Special Tax shall be levied Proportionately on each Parcel of Taxable Public Property, up to 100% of the Maximum Facilities Special Tax for each Parcel of Taxable Public Property until the amount levied is equal to the Facilities Special Tax Requirement. 2. Services Special Tax Each Fiscal Year, the Administrator shall determine the Services Special Tax Requirement and the Services Special Tax shall be levied according to the steps outlined below. Step 1: The Services Special Tax shall be levied Proportionately on each Parcel of Developed Property up to 100% of the Maximum Services Special Tax for each Parcel of Developed Property for such Fiscal Year until the amount levied is equal to the Services Special Tax Requirement. Step 2: If additional revenue is needed after Step 1, the Services Special Tax shall be levied Proportionately on each Parcel of Final Map Property up to 100% of the Maximum Services Special Tax for each Parcel of Final Map Property for such Fiscal Year until the amount levied is equal to the Services Special Tax Requirement. Step 3: If additional revenue is needed after Step 2, the Services Special Tax shall be levied Proportionately on each Parcel of Undeveloped Property up to 100% of the Maximum Services Special Tax for Undeveloped Property for such Fiscal Year until the amount levied is equal to the Services Special Tax Requirement. F. MANNER OF COLLECTION OF SPECIAL TAXES The Special Taxes shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that prepayments are permitted as set forth in Section H below and provided further that the City may directly bill the Special Taxes, may collect Special Taxes at a different time or in a different manner, and may collect delinquent Special Taxes through foreclosure or other available methods. East Ranch CFD No. 2023-1 14 October 25, 2023 127 Attachment 1 The Facilities Special Tax shall be levied and collected until principal and interest on Bonds have been repaid. However, in no event shall Facilities Special Taxes be levied after Fiscal Year 2063- 64. Under no circumstances may the Facilities Special Tax on a Parcel of Developed Property in residential use be increased in any Fiscal Year as a consequence of delinquency or default in payment of the Facilities Special Tax levied on another Parcel or Parcels by more than ten percent (10%) above the amount that would have been levied in that Fiscal Year had there never been any such delinquencies or defaults. The Services Special Tax may be levied and collected in perpetuity. G. EXEMPTIONS Notwithstanding any other provision of this RMA, no Special Taxes shall be levied in any Fiscal Year on the following: i. Public Property, except Taxable Public Property. ii. Owners Association Property, except Taxable Owners Association Property. iii. Welfare Exemption Property, except Taxable Welfare Exemption Property. iv. Affordable Housing Units, except as otherwise provided in Section D.4 v. The Exempt Affordable Units Parcel, except as otherwise provided in Section D.3 vi. Parcels that are owned by a public utility for an unmanned facility. vii. Parcels that are subject to an easement that precludes any other use on the Parcel. viii. For purposes of levying the Facilities Special Tax, Parcels that have fully prepaid the Facilities Special Tax obligation assigned to the Parcel pursuant to the formula set forth in Section H below. Such Parcels shall still be subject to the levy of the Services Special Tax. H. PREPAYMENTS The following definitions apply to this Section H: "Outstanding Bonds" means all Previously Issued Bonds which remain outstanding, with the following exception: if a Facilities Special Tax has been levied against, or already paid by, an Assessor's Parcel making a prepayment, and a portion of the Facilities Special Tax will be used to pay a portion of the next principal payment on the Bonds that remain outstanding (as determined by the Administrator), that next principal payment shall be subtracted from the total Bond principal that remains outstanding, and the difference shall be used as the amount of Outstanding Bonds for purposes of this prepayment formula. "Previously Issued Bonds" means all Bonds that have been issued prior to the date of prepayment. East Ranch CFD No. 2023-1 15 October 25, 2023 128 Attachment 1 "Public Facilities Requirement" means either $32.5 million in 2023 dollars, which shall increase on January 1, 2024, and on each January 1 thereafter by two percent (2%) of the amount in effect in the prior year, or such other number as shall be determined by the City as sufficient to fund improvements that are authorized to be funded by the CFD. The Public Facilities Requirements shown above may be adjusted each time property annexes into the CFD or there is an adjustment to the Expected Maximum Facilities Special Tax Revenues due to a Land Use Change or prepayment. "Remaining Facilities Costs" means the Public Facilities Requirement minus public facility costs funded by Previously Issued Bonds, developer equity, and any other source of funding. 1. Full Prepayment The Facilities Special Tax obligation applicable to a Parcel in the CFD may be prepaid and the obligation of the Parcel to pay the Facilities Special Tax permanently satisfied as described herein, provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Parcel at the time of prepayment. An owner of a Parcel intending to prepay the Facilities Special Tax obligation shall provide the City with written notice of intent to prepay. Within 30 days of receipt of such written notice, the City or its designee shall notify such owner of the prepayment amount for such Parcel. Prepayment must be made not less than 60 days prior to any redemption date for Bonds to be redeemed with the proceeds of such prepaid Facilities Special Taxes. The Prepayment Amount shall be calculated as follows (capitalized terms as defined below): Bond Redemption Amount plus Remaining Facilities Amount plus Redemption Premium plus Defeasance Requirement plus Administrative Fees and Expenses less Reserve Fund Credit equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount shall be determined by application of the following steps: Step 1. Compute the amount that could be collected from the Parcel prepaying the Facilities Special Tax in the Fiscal Year in which prepayment would be received by the City by applying the Base Facilities Special Tax to the Expected Land Uses for the Parcel. If this Section H is being applied to calculate a prepayment pursuant to Section D above, compute the amount by which the proposed Land Use Change would reduce Expected Maximum Facilities Special Tax Revenues below the amount needed for Required Coverage, and use this amount for purposes of this Step 1. Step 2. Divide the Maximum Facilities Special Tax computed pursuant to Step 1 for such Parcel by the total Expected Maximum Facilities Special Tax East Ranch CFD No. 2023-1 16 October 25, 2023 129 Attachment 1 Revenues for all property in the CFD, as shown in Attachment 2 and as adjusted by the Administrator after prepayments or Land Use Changes. Step 3. Multiply the quotient computed pursuant to Step 2 by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the "Bond Redemption Amount"). Step 4. Compute the current Remaining Facilities Costs (if any). Step 5. Multiply the quotient computed pursuant to Step 2 by the amount determined pursuant to Step 4 to compute the amount of Remaining Facilities Costs to be prepaid (the `Remaining Facilities Amount"). Step 6. Multiply the Bond Redemption Amount computed pursuant to Step 3 by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the "Redemption Premium"). Step 7. Compute the amount needed to pay interest on the Bond Redemption Amount starting with the first Bond interest payment date after which the prepayment will be received until the earliest redemption date for the Outstanding Bonds. However, if Bonds are callable at the first interest payment date after the prepayment has been received, Steps 7, 8, and 9 of this prepayment formula will not apply. Step 8: Compute the amount of interest the City reasonably expects to derive from reinvestment of the Bond Redemption Amount plus the Redemption Premium from the first Bond interest payment date after which the prepayment has been received until the redemption date for the Outstanding Bonds. Step 9: Subtract the amount computed pursuant to Step 8 from the amount computed pursuant to Step 7 (the "Defeasance Requirement"). Step 10. Step 11. Step 12. The administrative fees and expenses associated with the prepayment will be determined by the Administrator and include the costs of computing the prepayment, redeeming Bonds, and recording any notices to evidence the prepayment and the redemption (the 'Administrative Fees and Expenses"). If and to the extent so provided in the Bond Indenture, a reserve fund credit shall be calculated as a reduction in the applicable reserve fund for the Outstanding Bonds to be redeemed pursuant to the prepayment (the "Reserve Fund Credit"). The Facilities Special Tax prepayment is equal to the sum of the amounts computed pursuant to Steps 3, 5, 6, 9, and 10, less the amount computed pursuant to Step 11 (the "Prepayment Amount"). East Ranch CFD No. 2023-1 17 October 25, 2023 130 Attachment 1 Step 13. From the Prepayment Amount, the amounts computed pursuant to Steps 3, 6, and 9 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Outstanding Bonds or make debt service payments. The amount computed pursuant to Step 5 shall be deposited into the Improvement Fund. The amount computed pursuant to Step 10 shall be retained in the account or fund that is established to pay Administrative Expenses. Once a full prepayment of a Parcel's Facilities Special Tax obligation has been received, a Notice of Cancellation of Facilities Special Tax Lien shall be recorded against the Parcel to reflect the discharge of the Parcel's obligation to pay the Facilities Special Tax. However, a Notice of Cancellation of Facilities Special Tax Lien shall not be recorded until all Facilities Special Taxes levied on the Parcel in the current or prior Fiscal Years have been collected. 2. Partial Prepayment A partial prepayment may be made in an amount equal to any percentage of full prepayment desired by the party making a partial prepayment, except that the full amount of Administrative Fees and Expenses determined in Step 10 shall be included in the partial prepayment. The Maximum Facilities Special Tax that can be levied on a Parcel after a partial prepayment is made shall be equal to the portion of the Maximum Facilities Special Tax that was not prepaid. Once a partial prepayment has been received, an Amended Notice of Facilities Special Tax Lien shall be recorded against the Parcel to reflect the reduced Facilities Special Tax lien for the Parcel, and the Administrator shall update Attachment 2 to show the revised Expected Maximum Facilities Special Tax Revenues. However, an Amended Notice of Facilities Special Tax Lien shall not be recorded until all Facilities Special Taxes levied on the Parcel in the current or prior Fiscal Years have been collected. 3. Maintaining Required Coverage Notwithstanding the foregoing, if at any point in time the Administrator determines that the Maximum Facilities Special Tax revenue that could be collected from Taxable Property that remains subject to the Facilities Special Tax after the proposed prepayment would be less than the Required Coverage on Bonds that will remain outstanding after defeasance or redemption of Bonds from proceeds of the estimated prepayment, the amount of the prepayment shall be increased until the amount of Bonds defeased or redeemed is sufficient to reduce remaining annual debt service to a point at which Required Coverage is maintained. I. INTERPRETATION OF RMA The City reserves the right to make minor administrative and technical changes to this document that do not materially affect the rate and method of apportioning Special Taxes. In addition, the interpretation and application of any section of this document shall be left to the City's discretion. Interpretations may be made by the City by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this RMA. East Ranch CFD No. 2023-1 18 October 25, 2023 131 Attachment 1 ATTACHMENT 1 City of Dublin Community Facilities District No. 2023-1 (East Ranch) Identification of Tax Zones and Expected Lot Layout 132 Attachment 1 0 Attachment 1 1 I 1 1 I 1 I 1 I I I I I 0 w•^ V J NEIGHBORHOOD �.7 (cA I O N O N wo ww Vi Z PLEASANTON co LC) co w w w w 0 0 0 0 NJ N N N _', . i ■�."A mifr Arim ' .. INDICATES AFFORDABLE UNITS 0- 0 0 CO w t 1- 1 r 1 1 L__J 1 1i 1 1 1 1 I 1 1 1 I I I I J_J LJ I I Lf--------[ L__ L____) ce 0_ 0 ce O m w wth,. ocy) VJ w Z &) OI_ NZ HXD Z wum OQ z v°Oo GILL L.L i- UQ Z Z Q 0 -VI 1 � w p� I- m W O a � I1 CALIFORNIA J m 0 1—' w Q 0 V) ▪ CO I wz 0- 0 P:\19343-T\DES\OVERALL EXHIBITS\PLAN LIMITS-PHASING\TAX ZONE EXHIBIT.DWG C O N M N O CO Attachment 1 ATTACHMENT 2 City of Dublin Community Facilities District No. 2023-1 (East Ranch) Expected Land Uses and Expected Maximum Facilities Special Tax Revenues Tax Zone and Land Use Category Tax Zone 1 Single Family Property Affordable Housing Units Other Property Tax Zone 2 Single Family Property Affordable Housing Units Other Property Tax Zone 3 Single Family Property Affordable Housing Units Other Property Tax Zone 4 Single Family Property Affordable Housing Units Other Property Tax Zone 5 Single Family Property Affordable Housing Units Other Property Tax Zone 6 Single Family Property Affordable Housing Units Other Property Expected Land Uses 99 Residential Units 2 Residential Units 0 Acres 96 Residential Units 2 Residential Units 0 Acres 85 Residential Units 6 Residential Units 0 Acres 85 Residential Units 0 Residential Units 0 Acres 94 Residential Units 4 Residential Units 0 Acres 96 Residential Units 4 Residential Units 0 Acres Base Facilities Special Tax (FY 2023-24) * $5,850 per Res.Unit $0 per Res.Unit $28,741 per Acre $4,600 per Res.Unit $0 per Res.Unit $35,934 per Acre $4,400 per Res.Unit $0 per Res.Unit $28,679 per Acre $3,750 per Res.Unit $0 per Res.Unit $33,034 per Acre $3,300 per Res.Unit $0 per Res.Unit $37,882 per Acre $2,000 per Res.Unit $0 per Res.Unit $38,373 per Acre Expected Maximum Facilities Special Tax Revenues (FY 2023-24 $) Expected Maximum Facilities Special Tax Revenues (FY 2023-24) * $579,150 $0 $0 $441,600 $0 $0 $374,000 $0 $0 $318,750 $0 $0 $310,200 $0 $0 $192,000 $0 $0 $2,215,700 * On July 1, 2024, and each July 1 thereafter, all dollar amounts shown above shall be increased by two percent (2%) of the amount in effect in the prior Fiscal Year. 134 Attachment 2 RESOLUTION NO. XX-23 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN FORMING THE CITY OF DUBLIN COMMUNITY FACILITIES DISTRICT NO. 2023-1 (EAST RANCH) WHEREAS, on October 17, 2023, the City Council (the "City Council") of the City of Dublin (the "City") adopted Resolution No. 111-23 (the "Resolution of Intention"), stating its intention to form the City of Dublin Community Facilities District No. 2023-1 (East Ranch) (the "CFD") pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with Section 53311, of the California Government Code (the "Act"); and WHEREAS, the Resolution of Intention, describing a map of the proposed boundaries of the CFD, and stating the services and facilities to be provided, the cost of providing such services and facilities, and the rate and method of apportionment of the special taxes to be levied within the CFD to pay for the services and facilities, including the principal and interest on bonds proposed to be issued with respect to the CFD for the facilities, is on file with the City Clerk and the provisions thereof are incorporated herein by this reference as if fully set forth herein; and WHEREAS, on this date, this City Council held a noticed public hearing as required by the Act and the Resolution of Intention relative to the proposed formation of the CFD; and WHEREAS, at the hearing all interested persons desiring to be heard on all matters pertaining to the formation of the CFD, the services and facilities to be provided therein and the levy of said special taxes were heard and a full and fair hearing was held; and WHEREAS, at the hearing evidence was presented to this City Council on said matters before it, including a report prepared by Goodwin Consulting Group (the "Report") at the request of the Finance Director of the City, as to the services and facilities to be provided through the CFD and the costs thereof, a copy of which is on file with the City Clerk, and this City Council at the conclusion of said hearing is fully advised as to its substance; and WHEREAS, written protests with respect to the proposed formation of the CFD, the furnishing of specified types of services and facilities and the rate and method of apportionment of the special taxes have not been filed with the City Clerk by 50% or more of the registered voters residing within the territory of the CFD or property owners of one- half or more of the area of land within the CFD and not exempt from the proposed special tax; and Reso. No. XX-23, Item X.X, Adopted XX/XX/2023 Page 1 of 9 135 WHEREAS, the special taxes proposed to be levied in the CFD to pay for the proposed services and facilities to be provided therein, as set forth in the Rate and Method of Apportionment of Special Taxes attached as Exhibit A hereto, has not been eliminated by protest by 50% or more of the registered voters residing within the territory of the CFD or the owners of one-half or more of the area of land within the CFD and not exempt from the special tax. NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Dublin hereby finds, determines and resolves as follows: 1. Recitals Correct. The foregoing recitals are true and correct. 2. No Majority Protest. The proposed special taxes to be levied within the CFD has not been precluded by majority protest pursuant to section 53324 of the Act. 3. Prior Proceedings Valid. All prior proceedings taken by this City Council in connection with the establishment of the CFD, and the levy of the special taxes have been duly considered and are hereby found and determined to be valid and in conformity with the Act. 4. Name of CFD. The community facilities district designated "City of Dublin Community Facilities District No. 2023-1 (East Ranch)" is hereby established pursuant to the Act. 5. Boundaries of CFD. The boundaries of the CFD, as set forth in the map of the CFD heretofore recorded in the Alameda County Recorder's Office on November 1, 2023 in Book 19 at Page 46, as Document No. 2023129420 of Maps of Assessment and Community Facilities Districts, are hereby approved, are incorporated herein by reference and shall be the boundaries of the CFD, respectively. 6. Description of Facilities and Services. The type of public facilities proposed to be financed by the CFD and pursuant to the Act shall consist of those items listed as facilities in Exhibit B hereto and by this reference incorporated herein (the "Facilities"), which list of facilities has not been amended since the Resolution of Intention. The financing of the costs of Facilities may include, without limitation, the payment of principal of and interest on bonds together with all direct, indirect periodic, and/or other related costs (including, without limitation, costs of administering the CFD, levying, securing and administering the Special Taxes and the bonds, and establishing and replenishing reserve funds). The type of services proposed to be financed by the CFD pursuant to the Act shall consist of those listed as services in Exhibit B hereto and hereby incorporated herein (the "Services"). The City Council hereby determines that the Services are necessary to meet increased demands for such services placed upon local agencies as the result of development occurring within the area of the CFD. The Services are in addition to those Reso. No. XX-23, Item X.X, Adopted XX/XX/2023 Page 2 of 9 136 provided in the territory of the CFD as of the date hereof and will not supplant services already available within the territory of the CFD as of the date hereof. 7. Special Tax. a. Except to the extent that funds are otherwise available to the CFD to pay for the Services and Facilities, including the principal and interest as it becomes due on bonds of the CFD issued to finance the Facilities, special taxes (the "Special Taxes") sufficient to pay the costs thereof, secured by the recordation of a continuing lien against all non-exempt real property in the CFD, is intended to be levied annually within the CFD, and collected in the same manner as ordinary ad valorem property taxes or in such other manner as may be prescribed by this City Council. b. The proposed Rate and Method of Apportionment of Special Taxes (the "Rate and Method") among the parcels of real property within the CFD, in sufficient detail to allow each landowner within the proposed CFD to estimate the maximum amount such owner will have to pay, is shown in Exhibit A attached hereto and hereby incorporated herein. c. The Special Taxes shall not be levied in the CFD after the fiscal year specified in the Rate and Method, except that Special Taxes that were lawfully levied in or before the final tax year and that remains delinquent may be collected in subsequent years. Under no circumstances shall Special Taxes levied against any parcel in the CFD to be used for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within the CFD by more than 10%. 8. Increased Demands. It is hereby found and determined that the Services and Facilities are necessary to meet increased demands placed upon local agencies as the result of development occurring in the CFD. 9. Responsible Official. The Finance Director of the City of Dublin, 100 Civic Plaza, Dublin, CA 94568, Telephone (925) 833-6648, is the officer of the City who will be responsible for preparing annually a current roll of special tax levy obligations by assessor's parcel number and who will be responsible for estimating future special tax levies pursuant to the Act. 10. Tax Lien. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code of California, a continuing lien to secure each levy of the Special Taxes shall attach to all nonexempt real property in the CFD, and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the tax by the City ceases. Reso. No. XX-23, Item X.X, Adopted XX/XX/2023 Page 3 of 9 137 11. Appropriations Limit. In accordance with the Act, the annual appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, for the CFD is hereby preliminarily established at an initial amount of $67,000,000, and said appropriations limit shall be submitted to the voters of the CFD as hereafter provided, and subject to increase in accordance with law. The proposition establishing said annual appropriations limit shall become effective if approved by the qualified electors voting thereon and shall be adjusted in accordance with the applicable provisions of the Act. 12. Election. Pursuant to the provisions of the Act, the proposition of the levy of the Special Taxes and the proposition of the establishment of the appropriations limit specified above shall be submitted to the qualified electors of the CFD at an election. The time, place and conditions of the election shall be as specified by a separate resolution of this City Council. 13. Acquisition of Facilities. Public improvements authorized to be financed by the CFD from proceeds of the Bonds will be acquired by the City from a developer of land in the District pursuant to the terms of an Acquisition Agreement by and between the City and the developer. The Council hereby delegates authority to the Finance Director, Assistant City Manager and each other authorized officer of the City to enter into an Acquisition Agreement in a form approved by such officer. 14. Acquisition of Facilities by Other Agencies. Section 53316.2 of the Act provides that a community facilities district may finance facilities to be owned or operated by a public agency other than the agency that created the district, or services to be provided by a public agency other than the agency that created the district, or any combination, only pursuant to a joint community facilities agreement or a joint exercise of powers agreement adopted pursuant to this section. The Finance Director, Assistant City Manager and each other authorized officer of the City is hereby authorized and directed to enter into a joint community facilities agreement with the Dublin San Ramon Services District and any other entity that will own or operate any of the Facilities, as may be necessary to comply with the provisions of Section 53316.2(a) and (b) of the Act. The Council hereby declares that such joint agreements will be beneficial to owners of property in the area of the CFD. 15. Effective Date. This resolution shall take effect upon its adoption. {Signatures on Following Page} Reso. No. XX-23, Item X.X, Adopted XX/XX/2023 Page 4 of 9 138 PASSED, APPROVED, AND ADOPTED this day of , 2023, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk Reso. No. XX-23, Item X.X, Adopted XX/XX/2023 Page 5 of 9 139 Attachment 2 EXHIBIT A RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES Shown as Attachment 2 — Exhibit A to Resolution Forming the City of Dublin Community Facilities District 2023-1 (East Ranch) Page 6 of 9 140 EXHIBIT B LIST OF AUTHORIZED FACILITIES AND SERVICES The CFD is authorized to finance, in whole or in part, the following facilities and services: Authorized Facilities, Including Fees Financing Facilities In accordance with the Act, the CFD is authorized to finance the purchase, construction, expansion, improvement, or rehabilitation of any real or other tangible property with an estimated useful life of five years or longer, together with the planning and design work that is directly related to the purchase, construction, expansion, or rehabilitation of any real or tangible property (collectively, the "Facilities"). By way of example and not limitation, the CFD may fund any of the following: roadways and roadway improvements, traffic signals, regional hiking and biking trails, storm drains and basins, water and wastewater facilities (including, without limitation, domestic and non -domestic water facilities, wells, pre-treatment basins, infiltration basins, reservoirs, pipelines, storm and sewer drains and related infrastructure and improvements), wet and dry utilities, bridges and pedestrian bridges, tunnels, parks sites, park facilities and equipment, open space, school sites, school facilities and equipment, facilities and equipment relating to fire protection and suppression, facilities and equipment relating to police protection services, animal control facilities, library facilities and equipment, general government facilities, and related infrastructure improvements, both onsite and offsite, and all appurtenances and appurtenant work in connection with the foregoing (including utility line relocations and electric, gas and cable utilities). The Facilities may be constructed and installed by the City of Dublin ("City"), County of Alameda ("County"), Zone 7 Water Agency, Dublin San Ramon Services District, Dublin Unified School District or other local agency and/or acquired by the City, County, Zone 7 Water Agency, Dublin San Ramon Services District, or other local agency from private parties that construct the Facilities. Authorized Facilities also include the prepayment of overlapping community facilities district and assessment district liens. Authorized Facilities include facilities financed by development impact fees paid and not otherwise reimbursed, whether levied by the City, County, Zone 7 Water Agency, Dublin San Ramon Services District, Dublin Unified School District or other local agency. Authorized Services The CFD is authorized to finance each and every service authorized to be financed under the Act (collectively, the "Services.") By way of example and not limitation, the CFD may fund any of the following: furnishing, operating, maintaining and repairing equipment, apparatus or facilities related to providing the Services and/or equipment, apparatus, facilities or fixtures in areas to be maintained or repaired, paying the salaries and benefits of personnel necessary or convenient to provide the Services, payment of insurance costs Page 7 of 9 141 and other related expenses and the provision of reserves for repairs and replacements and for the future provision of Services. "Maintenance" shall include replacement, and the creation and funding of a reserve fund to pay for a replacement. It is expected that the Services will be provided by the City, either with its own employees or by contract with third parties, or any combination thereof. Administrative and Incidental Expenses In addition to the above facilities, other incidental expenses as authorized by the Mello -Roos Community Facilities Act of 1982, include these: the cost of planning, permitting, engineering, and designing the facilities (including the cost of environmental evaluation, orthophotography, and environmental remediation/mitigation); land acquisition and easement payments for authorized CFD facilities; project management; construction staking; engineering studies and preparation of an engineer's report; utility relocation and demolition costs incidental to construction of the facilities financed through the CFD; determination of the amount of taxes and collection of taxes; payment of taxes; costs otherwise incurred to carry out the authorized purposes of the CFD, including the issuance of bonds; reimbursements to other areas for infrastructure facilities or planning purposes serving development in the CFD; and any other expenses incidental to the construction, completion, and inspection of the facilities. In addition, the CFD shall fund the direct and indirect expenses incurred by the City, County or any other local agency in carrying out its duties with respect to the CFD including, but not limited to: 1. The levy and collection of the special taxes. 2. The fees and expenses of attorneys and consultants. 3. Any fees related to the collection of the special taxes. 4. An allocable share of the salaries and benefits of any City staff, or consultant fees, directly related thereto and a proportionate amount of the City's general administrative overhead related thereto. 5. Any amounts paid by the City with respect to the CFD. 6. Expenses incurred in undertaking action to foreclose on properties for which the payment of special taxes is delinquent. 7. Administrative fees of the City and the bond trustee or fiscal agent related to the CFD and the bonds issued by or for the CFD. 8. Costs related to the formation of the CFD. 9. Reimbursement of costs related to the formation of the CFD advanced by the City, the landowner(s) in the CFD or any party related to any of the foregoing, as well as reimbursement of any costs advanced by the City, the landowner(s) in the CFD or any party related to any of the foregoing, for facilities, fees or other purposes or costs of the CFD. Page 8 of 9 142 10. Costs related to the issuance of bonds by or for the CFD, including underwriters discount, reserve fund, capitalized interest, letter of credit fees and expenses, fees and expenses of bond counsel, disclosure counsel, special tax consultant, municipal advisor and appraiser, bond remarketing costs, and all other incidental expenses. 11. All other costs and expenses of the City in any way related to the CFD. Page 9 of 9 143 Attachment 3 Exhibit A - Resolution Forming the City of Dublin Community Facilities District No. 2023-1 (East Ranch) CITY OF DUBLIN COMMUNITY FACILITIES DISTRICT NO. 2023-1 (EAST RANCH) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES Special Taxes applicable to each Assessor's Parcel in the City of Dublin Community Facilities District No. 2023-1 (East Ranch) shall be levied and collected according to the tax liability determined by the City Council through the application of the appropriate amount or rate for Taxable Property, as described below. All of the property in the CFD, unless exempted by law or by the provisions of Section G below, 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 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 or other parcel map recorded at the County Recorder's Office. "Act" means the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311), 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 or trustee (including any fees or expenses of its counsel) employed in connection with any Bonds, and the expenses of the City in carrying out its duties with respect to the CFD and the Bonds, including, but not limited to, the levy and collection of Special Taxes, the fees and expenses of its counsel, charges levied by the County in connection with the levy and collection of Special Taxes, costs related to property owner inquiries regarding the Special Taxes, costs associated with appeals or requests for interpretation associated with the Special Taxes and this RMA, amounts needed to pay rebate to the federal government with respect to Bonds, costs associated with complying with continuing disclosure requirements for the City and any major property owners or other obligated parties, costs associated with foreclosure and collection of delinquent Special Taxes, and all other costs and expenses of the City in any way related to the establishment or administration of the CFD. "Administrator" shall mean the person or firm designated by the City to administer the Special Taxes according to this RMA. "Affordable Housing Unit" means any Residential Unit on a Parcel of Developed Property for which a deed restriction has been recorded on title of the property that limits the rental rate or sales price or otherwise restricts the affordability of the Residential Unit or income of its occupants. It is incumbent upon the builder, developer, or property owner to make the Administrator aware of such deed restriction. Residential Units on Welfare Exemption Property shall be categorized as Welfare Exemption Property for purposes of this RMA, not as Affordable Housing Units. East Ranch CFD No. 2023-1 1 October 25, 2023 144 Attachment 2 Exhibit A - Resolution Forming the City of Dublin Community Facilities District No. 2023-1 (East Ranch) "Assessor's Parcel" or "Parcel" means a lot or parcel shown on an Assessor's Parcel Map with an assigned Assessor's Parcel number. "Assessor's Parcel Map" means an official map of the County Assessor designating Parcels by Assessor's Parcel number. "Authorized Facilities" means the public facilities authorized to be financed, in whole or in part, by the CFD. "Authorized Services" means the public services authorized to be funded, in whole or in part, by the CFD. "Average Sales Price" means the weighted average sales price for all Residential Units within a particular Tax Zone that have sold within the past 6 months or are expected to sell in a normal marketing environment, and shall not include Affordable Housing Units or Residential Units that are sold at a discount for the purpose of stimulating initial sales activity. The sales price shall include the actual sales price of the Residential Units within the respective Tax Zone that have sold within the past 6 months or are expected to sell in a normal marketing environment including, but not limited to, options, upgrades, and premiums. "Base Facilities Special Tax" means, for any Land Use Category, the applicable Special Tax initially identified in Table 1 of Section C, as may be adjusted pursuant to Section D herein. "Bonds" means bonds or other debt (as defined in the Act), whether in one or more series, secured by the Facilities Special Tax and issued or assumed by the CFD to fund Authorized Facilities. "Building Permit" means a permit that allows for vertical construction of a building or buildings, which shall not include a separate permit issued for construction of the foundation thereof. "Capitalized Interest" means funds in any capitalized interest account available to pay debt service on Bonds. "CFD" means the City of Dublin Community Facilities District No. 2023-1 (East Ranch). "CFD Formation" means the date on which the Resolution of Formation to form the CFD was adopted by the City Council. "City" means the City of Dublin. "City Council" means the City Council of the City of Dublin, acting as the legislative body of CFD No. 2023-1. "County" means the County of Alameda. "Developed Property" means, in any Fiscal Year, all Parcels of Taxable Property that are not Taxable Owners Association Property, Taxable Public Property, or Taxable Welfare Exemption East Ranch CFD No. 2023-1 2 October 25, 2023 145 Attachment 2 Exhibit A - Resolution Forming the City of Dublin Community Facilities District No. 2023-1 (East Ranch) Property for which a Building Permit for new construction was issued prior to June 1 of the preceding Fiscal Year. "Development Class" means, individually, Developed Property, Final Map Property, Undeveloped Property, Taxable Owners Association Property, Taxable Welfare Exemption Property, and Taxable Public Property. "Exempt Affordable Units Parcel" means the Parcel in the CFD on which all Residential Units are expected to be Affordable Housing Units and, therefore, such Parcel (or Parcels once subdivided) is exempt from the levy of the Special Taxes unless and until Residential Units constructed on such Parcel(s) no longer have a deed restriction making them Affordable Units. The Exempt Affordable Units Parcel is identified in Attachment 1 hereto. Such exemption shall apply to the Parcel once it becomes a stand-alone Assessor's Parcel, whether such Parcel is Developed Property or Undeveloped Property, as defined herein. "Expected Land Uses" means, for any Tax Zone, the number of Residential Units and the acreage of Other Property expected within the CFD at CFD Formation, as identified in Attachments 1 and 2 of this RMA. Pursuant to Section D of this RMA, the Administrator shall update Attachment 2 each time there is a Land Use Change. Such update shall be maintained internally by the Administrator and shall not require recordation of an amended RMA. "Expected Maximum Facilities Special Tax Revenues" means the aggregate Facilities Special Tax that can be levied based on application of the Base Facilities Special Tax to the Expected Land Uses. The Expected Maximum Facilities Special Tax Revenues at CFD Formation are shown in Attachment 2 and may be revised pursuant to Section D and H below. "Facilities Special Tax" means a special tax levied in any Fiscal Year on Parcels in the CFD to pay the Facilities Special Tax Requirement. "Facilities Special Tax Requirement" means the amount necessary in any Fiscal Year (i) to pay principal and interest on Bonds which are due in the calendar year which begins in such Fiscal Year, (ii) to replenish reserve funds to the extent such replenishment has not been included in a computation of the Facilities Special Tax Requirement in a previous Fiscal Year, (iii) to cure any delinquencies in the payment of principal or interest on Bonds which have occurred in the prior Fiscal Year, (iv) to pay Administrative Expenses, and (v) to pay the costs of Authorized Facilities to be funded directly from Facilities Special Tax proceeds to the extent that paying directly for such costs does not increase the Facilities Special Taxes levied on Final Map Property or Undeveloped Property. The amounts referred to in clauses (i) and (ii) of the preceding sentence may be reduced in any Fiscal Year by (i) interest earnings on or surplus balances in funds and accounts for Bonds to the extent that such earnings or balances are available to apply against debt service pursuant to the Indenture, (ii) proceeds from the collection of penalties associated with delinquent Facilities Special Taxes, and (iii) any other revenues available to pay debt service on the Bonds as determined by the Administrator. "Final Map" means a final map, or portion thereof, approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq) that creates SFD Lots. The term "Final Map" shall not include any large -lot subdivision map, Assessor's Parcel Map, or East Ranch CFD No. 2023-1 3 October 25, 2023 146 Attachment 2 Exhibit A - Resolution Forming the City of Dublin Community Facilities District No. 2023-1 (East Ranch) subdivision map or portion thereof, that does not create SFD Lots, including Assessor's Parcels that are designated as remainder parcels. "Final Map Property" means, in any Fiscal Year, all SFD Lots created within Final Maps that had recorded prior to June 1 of the preceding Fiscal Year and which have not yet become Developed Property. "First Bond Sale" means issuance of the first series of Bonds secured, in whole or in part, by Facilities Special Taxes levied and collected from Parcels of Taxable Property in the CFD. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Improvement Fund" means the account (regardless of its name) identified in the Indenture to hold funds that are available for expenditure to acquire or construct Authorized Facilities or to pay eligible impact fees. "Indenture" means the bond indenture, fiscal agent agreement, trust agreement, resolution 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. "Land Use Category" means, individually, Single Family Property or Other Property. Affordable Housing Units shall be considered a separate Land Use Category for purposes of this RMA. "Land Use Change" means a proposed or approved change to the Expected Land Uses after CFD Formation. "Master Developer" means TH East Ranch Dublin, LLC, a California limited liability company, and its successors and assigns. "Maximum Facilities Special Tax" means the greatest amount of Facilities Special Tax that can be levied on a Parcel in any Fiscal Year as determined in accordance with Sections C and D below. "Maximum Services Special Tax" means the greatest amount of Services Special Tax that can be levied on a Parcel in any Fiscal Year, as determined in accordance with Section C below. "Maximum Special Tax" means, as the context requires, either or both of the Maximum Facilities Special Tax and Maximum Services Special Tax. "Other Property" means any Parcel of Taxable Property in the CFD that does not fit within the definition of Single Family Property, Affordable Housing Unit, Taxable Owners Association Property, Taxable Public Property, or Taxable Welfare Exemption Property. "Owners Association" means a homeowners association or property owners association that provides services to, and collects assessments, fees, dues, or charges from, property within the CFD. East Ranch CFD No. 2023-1 4 October 25, 2023 147 Attachment 2 Exhibit A - Resolution Forming the City of Dublin Community Facilities District No. 2023-1 (East Ranch) "Owners Association Property" means any property within the boundaries of the CFD that is owned in fee or through easement by the Owners Association, not including any such property that is located directly under a residential structure. "Price Point Consultant" means any consultant or firm selected by the City that: (a) has substantial experience in performing price point studies for Residential Units within community facilities districts or otherwise estimating or confirming pricing for Residential Units in community facilities districts; (b) has recognized expertise in analyzing economic and real estate data that relates to the pricing of Residential Units in community facilities districts; (c) is independent and not under the control of the City or any developer of Parcels in the CFD; (d) does not have any substantial interest, direct or indirect, with or in: (i) the CFD, (ii) the City, or (iii) any owner of real property in the CFD; and (e) is not connected with the City as an officer or employee thereof, but who may be regularly retained to make reports to the City. "Price Point Study" means a price point study or letter updating a previous price point study prepared by the Price Point Consultant pursuant to Section D herein. For each Tax Zone in the CFD, the price point study shall analyze Residential Units with similar density, lot sizes, square footage ranges, and product type as the Residential Units within that Tax Zone and excluding Affordable Housing Units. The Master Developer will be provided the opportunity to review and comment on the draft price point study before a final version is presented to the City. "Proportionately" means, for each Development Class, that the ratio of the actual Special Tax levied in any Fiscal Year to the Maximum Special Tax authorized to be levied in that Fiscal Year is equal for all parcels assigned to the Development Class. "Public Property" means any property within the boundaries of the CFD that is owned by the City, County, federal government, State of California, or other public agency. "Required Coverage" means the amount by which the Expected Maximum Facilities Special Tax Revenues must exceed the Bond debt service and priority Administrative Expenses (if any), as set forth in the Indenture, Certificate of Special Tax Consultant, or other formation or bond document that sets forth the minimum required debt service coverage. "Residential Unit" means an SFD Unit or an individual residential unit within a duplex, halfplex, triplex, fourplex, townhome, live/work or condominium structure. A second unit (granny flat) that shares a Parcel with an SFD Unit shall not be considered a Residential Unit for purposes of levying the Special Taxes. "RMA" means this Rate and Method of Apportionment of Special Taxes. "Services Special Tax" means a special tax levied in any Fiscal Year on Parcels in the CFD to pay the Services Special Tax Requirement. "Services Special Tax Requirement" means the amount of revenue needed in any Fiscal Year to pay for: (i) Authorized Services, (ii) Administrative Expenses, and (iii) amounts needed to cure delinquencies in the payment of Services Special Taxes which have occurred in the prior Fiscal Year. In any Fiscal Year, the Services Special Tax Requirement shall be reduced by surplus East Ranch CFD No. 2023-1 5 October 25, 2023 148 Attachment 2 Exhibit A - Resolution Forming the City of Dublin Community Facilities District No. 2023-1 (East Ranch) amounts available (as determined by the City) from the levy of the Services Special Tax in prior Fiscal Years, including revenues from collection of delinquent Services Special Taxes and associated penalties and interest. "SFD Lot" means an individual residential lot, identified and numbered on a recorded Final Map, on which a Building Permit has been or is permitted to be issued for construction of an SFD Unit without further subdivision of the lot and for which no further subdivision of the lot is anticipated pursuant to an approved Tentative Map. "SFD Unit" means a residential dwelling unit that does not share a common wall with another residential dwelling unit. "Single Family Property" means, in any Fiscal Year, all Parcels of Taxable Property for which a Building Permit was or is expected to be issued for: (i) construction of an SFD Unit, or (ii) construction of a residential structure consisting of two or more Residential Units that share common walls, have separate Assessor's Parcel numbers assigned to them (except for a duplex unit, which may share an Assessor's Parcel with another duplex unit), and may be purchased by individual homebuyers (which shall still be the case even if the Residential Units are purchased and subsequently offered for rent by the owners of the Residential Units), including such residential structures that meet the statutory definition of a condominium contained in Civil Code Section 1351. "Special Taxes" means the Facilities Special Tax and Services Special Tax. "Tax Zone" means a geographic area within which a particular Maximum Facilities Special Tax rate may be levied pursuant to this RMA, as identified in Attachment 1 hereto. "Taxable Owners Association Property" means, in any Fiscal Year after the First Bond Sale, any Parcel of Owners Association Property that satisfies all three of the following conditions: (i) the Parcel had not been Owners Association Property on the date of the First Bond Sale; (ii) based on reference to Attachments 1 and 2 (as may be updated pursuant to Section D below), the Parcel was not anticipated to be Owners Association Property as determined by the Administrator; and (iii) if the Parcel were to be exempt from the Facilities Special Tax because it is Owners Association Property, the Expected Maximum Facilities Special Tax Revenues would be reduced to a point at which Required Coverage could not be maintained. "Taxable Property" means all of the Parcels within the boundaries of the CFD that are not exempt from the Special Taxes pursuant to law or Section G below. "Taxable Public Property" means in any Fiscal Year after the First Bond Sale, any Parcel of Public Property that satisfies all three of the following conditions: (i) the Parcel had not been Public Property on the date of the First Bond Sale; (ii) based on reference to Attachments 1 and 2 (as may be updated pursuant to Section D below), the Parcel was not anticipated to be Public Property as determined by the Administrator; and (iii) if the Parcel were to be exempt from the Facilities Special Tax because it is Public Property, the Expected Maximum Facilities Special Tax Revenues would be reduced to a point at which Required Coverage could not be maintained. East Ranch CFD No. 2023-1 6 October 25, 2023 149 Attachment 2 Exhibit A - Resolution Forming the City of Dublin Community Facilities District No. 2023-1 (East Ranch) "Taxable Welfare Exemption Property" means in any Fiscal Year after the First Bond Sale, any Parcel of Welfare Exemption Property that satisfies all three of the following conditions: (i) the Parcel had not been Welfare Exemption Property on the date of issuance of the First Bond Sale; (ii) based on reference to Attachments 1 and 2 (as may be updated pursuant to Section D below), the Parcel was not anticipated to be Welfare Exemption Property based on the Expected Land Uses, as determined by the Administrator; and (iii) if the Parcel were to be exempt from the Facilities Special Tax because it has become Welfare Exemption Property, the Expected Maximum Facilities Special Tax Revenues would be reduced to a point at which Required Coverage could not be maintained. "Tentative Map" means a tentative map or substantial conformance exhibit for property in the CFD, including any adjustments or amendments thereto. "Total Tax Burden" means, for Single Family Property, that the Special Taxes, together with ad valorem property taxes, special assessments, special taxes for any overlapping community facilities districts, or any other taxes, fees and charges which would be collected by the County on property tax bills for a Residential Unit with an assessed value equal to the Average Sales Price, and which are payable from and secured by the property assuming such Residential Unit had been completed, sold, and subject to such levies and impositions, excluding service charges such as sewer and trash, and voluntary assessments such as those associated with a Property Assessed Clean Energy program. "Undeveloped Property" means, in any Fiscal Year, all Parcels of Taxable Property that are not Final Map Property, Developed Property, Taxable Owners Association Property, Taxable Public Property, or Taxable Welfare Exemption Property as defined herein. "Welfare Exemption Property" means, in any Fiscal Year, any Parcels in the CFD that have received a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code and for which such welfare exemption is still in place. B. DATA FOR ADMINISTRATION OF THE SPECIAL TAXES Each Fiscal Year, the Administrator shall: (i) assign each Parcel of Taxable Property to the appropriate Tax Zone and the appropriate Development Class; (ii) for Developed Property, categorize each Parcel as Single Family Property, an Affordable Housing Unit, or Other Property; and (iii) determine the Facilities Special Tax Requirement and the Services Special Tax Requirement for the Fiscal Year. In addition, the Administrator shall, on an ongoing basis, monitor the Tentative Map, Final Maps, and Building Permits to determine if there are any proposed Land Use Changes that would change the Expected Maximum Facilities Special Tax Revenues. If the Expected Maximum Facilities Special Tax Revenues will be revised pursuant to a proposed Land Use Change, the Administrator shall apply the steps set forth in Section D below. In any Fiscal Year, if it is determined that: (i) a parcel map for property in the CFD was recorded after January 1 of the prior Fiscal Year (or any other date after which the Assessor will not incorporate the newly -created Parcels into the then current tax roll), (ii) because of the date the parcel map was recorded, the Assessor does not yet recognize the new Parcels created by the parcel East Ranch CFD No. 2023-1 7 October 25, 2023 150 Attachment 2 Exhibit A - Resolution Forming the City of Dublin Community Facilities District No. 2023-1 (East Ranch) map, and (iii) one or more of the newly -created Parcels is in a different Development Class than other Parcels created by the subdivision, the Administrator shall calculate the Special Taxes for the property affected by recordation of the parcel map by determining the Special Taxes that apply separately to the property within each Development Class, then applying the sum of the individual Special Taxes to the Parcel that was subdivided by recordation of the parcel map. C. MAXIMUM SPECIAL TAXES 1. Facilities Special Tax: Developed Property and Final Map Property The Maximum Facilities Special Tax for a Parcel of Developed Property is the greater of: (i) the Base Facilities Special Tax set forth in Table 1 below, or (ii) the Maximum Facilities Special Tax determined pursuant to Section D. Table 1 Base Facilities Special Tax Developed Property and Final Map Property Tax Zone and Land Use Category Tax Zone 1 Single Family Property Affordable Housing Units Other Property Tax Zone 2 Single Family Property Affordable Housing Units Other Property Tax Zone 3 Single Family Property Affordable Housing Units Other Property Tax Zone 4 Single Family Property Affordable Housing Units Other Property Tax Zone 5 Single Family Property Affordable Housing Units Other Property Tax Zone 6 Single Family Property Affordable Housing Units Other Property Base Facilities Special Tax Fiscal Year 2023-24 * $5,850 per Residential Unit or SFD Lot $0 per Residential Unit $28,741 per Acre $4,600 per Residential Unit or SFD Lot $0 per Residential Unit $35,934 per Acre $4,400 per Residential Unit or SFD Lot $0 per Residential Unit $28,679 per Acre $3,750 per Residential Unit or SFD Lot $0 per Residential Unit $33,034 per Acre $3,300 per Residential Unit or SFD Lot $0 per Residential Unit $37,882 per Acre $2,000 per Residential Unit or SFD Lot $0 per Residential Unit $38,373 per Acre * On July 1, 2024, and on each July 1 thereafter, all figures shown in Table 1 above shall be increased by an amount equal to 2.0% of the amount in effect for the prior Fiscal Year. East Ranch CFD No. 2023-1 8 October 25, 2023 151 Attachment 2 Exhibit A - Resolution Forming the City of Dublin Community Facilities District No. 2023-1 (East Ranch) 2. Facilities Special Tax: Undeveloped Property, Taxable Owners Association Property, Taxable Welfare Exemption Property, and Taxable Public Property Table 2 below identifies the Maximum Facilities Special Tax for Parcels of Undeveloped Property, Taxable Owners Association Property, Taxable Welfare Exemption Property, and Taxable Public Property in each Tax Zone. Table 2 Maximum Facilities Special Tax for Undeveloped Property, Taxable Owners Association Property, Taxable Welfare Exemption Property, and Taxable Public Property Tax Zone Tax Zone 1 Tax Zone 2 Tax Zone 3 Tax Zone 4 Tax Zone 5 Tax Zone 6 Maximum Facilities Special Tax (Fiscal Year 2023-24)* $28,741 per Acre $35,934 per Acre $28,679 per Acre $33,034 per Acre $37,882 per Acre $38,373 per Acre * On July 1, 2024 and on each July 1 thereafter, all dollar amounts shown in Table 2 above shall be increased by an amount equal to 2.0% of the amount in effect for the prior Fiscal Year. 3. Services Special Tax: Developed Property and Final Map Property The Maximum Services Special Tax for Parcels of Developed Property and Final Map Property is $381 per Residential Unit or SFD Lot in Fiscal Year 2023-24. Notwithstanding the foregoing, the Maximum Services Special Tax shall not be levied on Affordable Housing Units. On July 1, 2024 and on each July 1 thereafter, the Maximum Services Special Tax shall be increased by an amount equal to 4.0% of the amount in effect for the prior Fiscal Year. 4. Services Special Tax: Undeveloped Property Table 3 below identifies the Maximum Services Special Tax for Parcels of Undeveloped Property in each Tax Zone. Table 3 Maximum Services Special Tax for Undeveloped Property Maximum Services Special Tax Tax Zone (Fiscal Year 2023-24)* Tax Zone 1 $1,872 per Acre Tax Zone 2 $2,636 per Acre Tax Zone 3 $2,484 per Acre Tax Zone 4 $3,356 per Acre Tax Zone 5 $4,373 per Acre Tax Zone 6 $7,316 per Acre * On July 1, 2024 and on each July 1 thereafter, all dollar amounts shown in Table 3 above shall be increased by an amount equal to 4.0% of the amount in effect for the prior Fiscal Year. East Ranch CFD No. 2023-1 9 October 25, 2023 152 Attachment 2 Exhibit A - Resolution Forming the City of Dublin Community Facilities District No. 2023-1 (East Ranch) D. CHANGES TO THE MAXIMUM FACILITIES SPECIAL TAX Pursuant to this Section D, the Administrator may from time to time update Attachment 2 to reflect revised Expected Maximum Facilities Special Tax Revenues. Such update shall be maintained internally by the Administrator and shall not require recordation of an amended RMA. 1. Land Use Changes The Expected Maximum Facilities Special Tax Revenues shown in Attachment 2 were originally calculated based on the Expected Land Uses at CFD Formation. Attachment 2 is subject to modification upon the occurrence of Land Use Changes, as described below. The Administrator shall review all Land Use Changes and compare the revised land uses to the Expected Land Uses to evaluate the impact on the Expected Maximum Facilities Special Tax Revenues. Prior to the First Bond Sale, if a Land Use Change is proposed or identified that will result in a change in the Expected Maximum Facilities Special Tax Revenues, no action will be needed pursuant to this Section D. Upon approval of the Land Use Change, the Administrator shall update Attachment 2 to show the revised Expected Maximum Facilities Special Tax Revenues. After the First Bond Sale, if a Land Use Change is proposed or identified, Steps 1 through 3 below must be applied: Step 1: Step 2: By reference to Attachment 2 (which shall be updated by the Administrator each time a Land Use Change has been processed according to this Section D or a partial prepayment has been made), the Administrator shall identify the Expected Maximum Facilities Special Tax Revenues prior to the Land Use Change. The Administrator shall calculate the Expected Maximum Facilities Special Tax Revenues that could be collected from Taxable Property in the CFD after the Land Use Change based on application of the Base Facilities Special Taxes from Table 1. Step 3: If the revenues calculated in Step 2 are (i) higher than those determined in Step 1 or (ii) less than those calculated in Step 1, but the reduction in Expected Maximum Facilities Special Tax Revenues does not reduce debt service coverage on outstanding Bonds below Required Coverage, no further action is needed, and the Administrator shall update Attachment 2 to show the revised Expected Maximum Facilities Special Tax Revenues. If the revenues calculated in Step 2 are less than those calculated in Step 1, and the Administrator determines that the reduction in Expected Maximum Facilities Special Tax Revenues would reduce debt service coverage on outstanding Bonds below the Required Coverage, one of the following shall occur: 3.a. The landowner requesting the Land Use Change (the "Requesting Landowner") may make a prepayment in an amount that will ensure that the reduced Expected Maximum Facilities Special Tax Revenues are sufficient to East Ranch CFD No. 2023-1 10 October 25, 2023 153 Attachment 2 Exhibit A - Resolution Forming the City of Dublin Community Facilities District No. 2023-1 (East Ranch) provide Required Coverage, as determined pursuant to Section H below. If the Requesting Landowner notifies the Administrator that he/she would like to remedy the reduction by making a prepayment, such prepayment must be made by the earlier of (i) 30 days from the date of delivery of the prepayment estimate or (ii) the date of issuance of any Building Permits for any Parcel owned by the Requesting Landowner that was Final Map Property or Undeveloped Property at the time the Administrator prepared the prepayment estimate, or 3.b. If a prepayment is not received by the due date specified above, the Base Facilities Special Tax used to determine the Maximum Facilities Special Tax for each Parcel of Taxable Property in the area affected by the Land Use Change shall be increased proportionately until the Expected Maximum Facilities Special Tax Revenues are sufficient to maintain Required Coverage. If multiple Land Use Changes are proposed simultaneously by a single landowner (which may include approval of multiple Final Maps at one time), and the landowner requests that the impact of two or more of the Land Use Changes be considered together, the Administrator shall consider the combined effect of the Land Use Changes to determine if there is a reduction in Expected Maximum Facilities Special Tax Revenues. If there is a reduction that would reduce debt service coverage below the Required Coverage, and no prepayment has been received, then the Base Facilities Special Tax used to determine the Maximum Facilities Special Tax for each Parcel of Taxable Property in the areas affected by the Land Use Changes shall be increased proportionately until the aggregate amount that can be levied within such areas is equal to the amount that could have been levied prior to the proposed Land Use Changes. If Land Use Changes are proposed simultaneously by multiple landowners, or if an individual landowner proposing multiple Land Use Changes does not request that such Land Use Changes be considered together, the Administrator shall consider the proposed Land Use Changes individually. Notwithstanding the foregoing, once a certificate of occupancy has been issued for a Residential Unit on a Parcel, the Maximum Facilities Special Tax for the Parcel cannot be increased because of subsequent Land Use Changes that may occur within the area in which the Parcel is located. The duties imposed on the Administrator pursuant to this Section D to review Land Use Changes, and to review Final Maps and make certain calculations, are intended only to facilitate the administration of the Facilities Special Tax and to better assure the sufficiency of tax capacity to pay debt service on Bonds. Such duties are not intended to give any developer, subdivider, or owner of property the right to receive notice of the potential impact of Land Use Changes on the Facilities Special Tax applicable to a Parcel; and each developer, subdivider, or owner of property whose property is the subject of a Land Use Change shall be responsible for understanding the impact thereof on the Facilities Special Tax applicable to such property. 2. Partial Prepayments If a Parcel makes a partial prepayment pursuant to Section H below, the Administrator shall recalculate the Maximum Facilities Special Tax for the Parcel pursuant to Section H.2. In addition, the Administrator shall update Attachment 2 to reflect the prepayment and the revised Expected Maximum Facilities Special Tax Revenues for the CFD. After the prepayment has been received, East Ranch CFD No. 2023-1 11 October 25, 2023 154 Attachment 2 Exhibit A - Resolution Forming the City of Dublin Community Facilities District No. 2023-1 (East Ranch) the application of Sections D, E, and H of this RMA shall be based on the adjusted Expected Maximum Facilities Special Tax Revenues after the prepayment. 3. Conversion of a Parcel to a Taxable Land Use If, in any Fiscal Year, an Affordable Housing Unit, the Exempt Affordable Units Parcel, or a Parcel of Public Property, Welfare Exemption Property, or Owners Association Property that had been exempt from the Special Taxes is converted to Single Family Property or Other Property, such Parcel shall be subject to the levy of Special Taxes. The Maximum Special Taxes for each such Parcel shall be determined based on the applicable Land Use Category for the Parcel, as determined by the Administrator. In addition, the Administrator shall update Attachment 2 to reflect the revised Expected Land Uses and Expected Maximum Facilities Special Tax Revenues for the CFD. 4. Increase in Affordable Housing Units If, prior to the First Bond Sale, the Administrator determines that there is an increase in the number of Affordable Housing Units expected within any Tax Zone, the Administrator shall update the Expected Land Uses and Expected Maximum Facilities Special Tax Revenues in Attachment 2, and the additional Affordable Housing Units will be exempt from the Special Taxes. If, at any time after the First Bond Sale, additional Affordable Housing Units are proposed, and if the addition of the new Affordable Housing Units will decrease the Expected Maximum Facilities Special Tax Revenues to a point at which Required Coverage cannot be maintained, the Administrator shall calculate the Maximum Facilities Special Tax that must be assigned to each of the new Affordable Housing Units to maintain Required Coverage. The Maximum Facilities Special Tax assigned to the new Affordable Housing Units shall be escalated each Fiscal Year by an amount equal to 2.0% of the amount in effect for the prior Fiscal Year. 5. Transfer of Expected Maximum Facilities Special Tax Revenues Among Tax Zones The Expected Maximum Facilities Special Tax Revenues were determined for each Tax Zone based on the Expected Land Uses within that Tax Zone. If the expected number of Residential Units or the expected acres of Other Property is transferred from one Tax Zone to another, the City may, in its sole discretion, allow for a corresponding transfer of Expected Maximum Facilities Special Tax Revenues between the Tax Zones. Such a transfer shall only be allowed if (i) all adjustments are agreed to in writing by the affected property owners and the City, and (ii) there is no reduction in the total Expected Maximum Facilities Special Tax Revenues as a result of the transfer. After such a transfer, the Administrator shall update Attachment 2 to reflect the revised Expected Maximum Facilities Special Tax Revenues for each Tax Zone. 6. Reduction in Maximum Facilities Special Tax The Base Facilities Special Tax for one or more Tax Zones shall be reduced prior to the First Bond Sale if the City reasonably determines based on a Price Point Study that, without a reduction in the Base Facilities Special Tax for Residential Units within those Tax Zone(s), the Total Tax Burden will exceed 1.58% of the Average Sales Price. Such determination shall be made by the City hiring, at the CFD's expense, a Price Point Consultant to prepare a Price Point Study to confirm the Average Sales Price for Residential Units within each Tax Zone. If, based on the Price Point East Ranch CFD No. 2023-1 12 October 25, 2023 155 Attachment 2 Exhibit A - Resolution Forming the City of Dublin Community Facilities District No. 2023-1 (East Ranch) Study, the Administrator calculates that the Total Tax Burden for Residential Units within one or more Tax Zones will exceed 1.58% of the Average Sales Price, the Administrator and the City shall meet with the Master Developer to discuss the findings, after which point the Administrator shall reduce the Base Facilities Special Tax to the point at which the Total Tax Burden on Residential Units in each Tax Zone in the CFD is equal to 1.58% of the Average Sales Price for such Residential Units. Any such reduction shall occur at least 60 days prior to the First Bond Sale. The Base Facilities Special Taxes set forth in Table 1 may also be (i) disproportionately reduced prior to the First Bond Sale, but not to a level that exceeds the 1.58% described in the previous paragraph, so long as the Master Developer is the owner of all Parcels in the CFD and requests a reduction in the Base Facilities Special Taxes, or (ii) proportionately or disproportionately reduced prior to the First Bond Sale, but not to a level that exceeds the 1.58% described in the previous paragraph, if the owner of any Parcel in the CFD requests a reduction in the Base Facilities Special Taxes and the owners of all Parcels in the CFD consent to such reduction by unanimous vote. Any such reduction shall occur at least 60 days prior to the First Bond Sale. The Base Facilities Special Tax reductions permitted pursuant to this paragraph shall be reflected in an Amended Notice of Special Tax Lien, which the Administrator shall cause to be recorded. If, based on the Price Point Study, the Administrator determines that the Total Tax Burden will not exceed 1.58% of the Average Sales Price, then there shall be no change in the Base Facilities Special Tax for Residential Units unless so requested by the Master Developer. E. METHOD OF LEVY OF THE SPECIAL TAXES 1. Facilities Special Tax Each Fiscal Year, the Administrator shall determine the Facilities Special Tax Requirement to be collected in that Fiscal Year. A Facilities Special Tax shall then be levied according to the following steps: Step 1: The Facilities Special Tax shall be levied Proportionately on each Parcel of Developed Property up to 100% of the Maximum Facilities Special Tax for each Parcel of Developed Property until the amount levied is equal to the Facilities Special Tax Requirement prior to applying any Capitalized Interest that is available in the CFD accounts. Step 2: If additional revenue is needed after Step 1 in order to meet the Facilities Special Tax Requirement after Capitalized Interest has been applied to reduce the Facilities Special Tax Requirement, the Facilities Special Tax shall be levied Proportionately on each Parcel of Final Map Property up to 100% of the Maximum Facilities Special Tax for each Parcel of Final Map Property until the amount levied is equal to the Facilities Special Tax Requirement. Step 3: If additional revenue is needed after Step 2, the Facilities Special Tax shall be levied Proportionately on each Parcel of Undeveloped Property up to 100% of the East Ranch CFD No. 2023-1 13 October 25, 2023 156 Attachment 2 Exhibit A - Resolution Forming the City of Dublin Community Facilities District No. 2023-1 (East Ranch) Step 4: Maximum Facilities Special Tax for each Parcel of Undeveloped Property until the amount levied is equal to the Facilities Special Tax Requirement. If additional revenue is needed after Step 3, the Facilities Special Tax shall be levied Proportionately on each Parcel of Taxable Welfare Exemption Property, up to 100% of the Maximum Facilities Special Tax for each Parcel of Taxable Welfare Exemption Property for such Fiscal Year until the amount levied is equal to the Facilities Special Tax Requirement. Step 5: If additional revenue is needed after Step 4, the Facilities Special Tax shall be levied Proportionately on each Parcel of Taxable Owners Association Property, up to 100% of the Maximum Facilities Special Tax for each Parcel of Taxable Owners Association Property until the amount levied is equal to the Facilities Special Tax Requirement. Step 6: If additional revenue is needed after Step 5, the Facilities Special Tax shall be levied Proportionately on each Parcel of Taxable Public Property, up to 100% of the Maximum Facilities Special Tax for each Parcel of Taxable Public Property until the amount levied is equal to the Facilities Special Tax Requirement. 2. Services Special Tax Each Fiscal Year, the Administrator shall determine the Services Special Tax Requirement and the Services Special Tax shall be levied according to the steps outlined below. Step 1: The Services Special Tax shall be levied Proportionately on each Parcel of Developed Property up to 100% of the Maximum Services Special Tax for each Parcel of Developed Property for such Fiscal Year until the amount levied is equal to the Services Special Tax Requirement. Step 2: If additional revenue is needed after Step 1, the Services Special Tax shall be levied Proportionately on each Parcel of Final Map Property up to 100% of the Maximum Services Special Tax for each Parcel of Final Map Property for such Fiscal Year until the amount levied is equal to the Services Special Tax Requirement. Step 3: If additional revenue is needed after Step 2, the Services Special Tax shall be levied Proportionately on each Parcel of Undeveloped Property up to 100% of the Maximum Services Special Tax for Undeveloped Property for such Fiscal Year until the amount levied is equal to the Services Special Tax Requirement. F. MANNER OF COLLECTION OF SPECIAL TAXES The Special Taxes shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that prepayments are permitted as set forth in Section H below and provided further that the City may directly bill the Special Taxes, may collect Special Taxes at a different time or in a different manner, and may collect delinquent Special Taxes through foreclosure or other available methods. East Ranch CFD No. 2023-1 14 October 25, 2023 157 Attachment 2 Exhibit A - Resolution Forming the City of Dublin Community Facilities District No. 2023-1 (East Ranch) The Facilities Special Tax shall be levied and collected until principal and interest on Bonds have been repaid. However, in no event shall Facilities Special Taxes be levied after Fiscal Year 2063- 64. Under no circumstances may the Facilities Special Tax on a Parcel of Developed Property in residential use be increased in any Fiscal Year as a consequence of delinquency or default in payment of the Facilities Special Tax levied on another Parcel or Parcels by more than ten percent (10%) above the amount that would have been levied in that Fiscal Year had there never been any such delinquencies or defaults. The Services Special Tax may be levied and collected in perpetuity. G. EXEMPTIONS Notwithstanding any other provision of this RMA, no Special Taxes shall be levied in any Fiscal Year on the following: i. Public Property, except Taxable Public Property. ii. Owners Association Property, except Taxable Owners Association Property. iii. Welfare Exemption Property, except Taxable Welfare Exemption Property. iv. Affordable Housing Units, except as otherwise provided in Section D.4 v. The Exempt Affordable Units Parcel, except as otherwise provided in Section D.3 vi. Parcels that are owned by a public utility for an unmanned facility. vii. Parcels that are subject to an easement that precludes any other use on the Parcel. viii. For purposes of levying the Facilities Special Tax, Parcels that have fully prepaid the Facilities Special Tax obligation assigned to the Parcel pursuant to the formula set forth in Section H below. Such Parcels shall still be subject to the levy of the Services Special Tax. H. PREPAYMENTS The following definitions apply to this Section H: "Outstanding Bonds" means all Previously Issued Bonds which remain outstanding, with the following exception: if a Facilities Special Tax has been levied against, or already paid by, an Assessor's Parcel making a prepayment, and a portion of the Facilities Special Tax will be used to pay a portion of the next principal payment on the Bonds that remain outstanding (as determined by the Administrator), that next principal payment shall be subtracted from the total Bond principal that remains outstanding, and the difference shall be used as the amount of Outstanding Bonds for purposes of this prepayment formula. "Previously Issued Bonds" means all Bonds that have been issued prior to the date of prepayment. East Ranch CFD No. 2023-1 15 October 25, 2023 158 Attachment 2 Exhibit A - Resolution Forming the City of Dublin Community Facilities District No. 2023-1 (East Ranch) "Public Facilities Requirement" means either $32.5 million in 2023 dollars, which shall increase on January 1, 2024, and on each January 1 thereafter by two percent (2%) of the amount in effect in the prior year, or such other number as shall be determined by the City as sufficient to fund improvements that are authorized to be funded by the CFD. The Public Facilities Requirements shown above may be adjusted each time property annexes into the CFD or there is an adjustment to the Expected Maximum Facilities Special Tax Revenues due to a Land Use Change or prepayment. "Remaining Facilities Costs" means the Public Facilities Requirement minus public facility costs funded by Previously Issued Bonds, developer equity, and any other source of funding. 1. Full Prepayment The Facilities Special Tax obligation applicable to a Parcel in the CFD may be prepaid and the obligation of the Parcel to pay the Facilities Special Tax permanently satisfied as described herein, provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Parcel at the time of prepayment. An owner of a Parcel intending to prepay the Facilities Special Tax obligation shall provide the City with written notice of intent to prepay. Within 30 days of receipt of such written notice, the City or its designee shall notify such owner of the prepayment amount for such Parcel. Prepayment must be made not less than 60 days prior to any redemption date for Bonds to be redeemed with the proceeds of such prepaid Facilities Special Taxes. The Prepayment Amount shall be calculated as follows (capitalized terms as defined below): Bond Redemption Amount plus Remaining Facilities Amount plus Redemption Premium plus Defeasance Requirement plus Administrative Fees and Expenses less Reserve Fund Credit equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount shall be determined by application of the following steps: Step 1. Compute the amount that could be collected from the Parcel prepaying the Facilities Special Tax in the Fiscal Year in which prepayment would be received by the City by applying the Base Facilities Special Tax to the Expected Land Uses for the Parcel. If this Section H is being applied to calculate a prepayment pursuant to Section D above, compute the amount by which the proposed Land Use Change would reduce Expected Maximum Facilities Special Tax Revenues below the amount needed for Required Coverage, and use this amount for purposes of this Step 1. Step 2. Divide the Maximum Facilities Special Tax computed pursuant to Step 1 for such Parcel by the total Expected Maximum Facilities Special Tax East Ranch CFD No. 2023-1 16 October 25, 2023 159 Attachment 2 Exhibit A - Resolution Forming the City of Dublin Community Facilities District No. 2023-1 (East Ranch) Revenues for all property in the CFD, as shown in Attachment 2 and as adjusted by the Administrator after prepayments or Land Use Changes. Step 3. Multiply the quotient computed pursuant to Step 2 by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the "Bond Redemption Amount"). Step 4. Compute the current Remaining Facilities Costs (if any). Step 5. Multiply the quotient computed pursuant to Step 2 by the amount determined pursuant to Step 4 to compute the amount of Remaining Facilities Costs to be prepaid (the `Remaining Facilities Amount"). Step 6. Multiply the Bond Redemption Amount computed pursuant to Step 3 by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the "Redemption Premium"). Step 7. Compute the amount needed to pay interest on the Bond Redemption Amount starting with the first Bond interest payment date after which the prepayment will be received until the earliest redemption date for the Outstanding Bonds. However, if Bonds are callable at the first interest payment date after the prepayment has been received, Steps 7, 8, and 9 of this prepayment formula will not apply. Step 8: Compute the amount of interest the City reasonably expects to derive from reinvestment of the Bond Redemption Amount plus the Redemption Premium from the first Bond interest payment date after which the prepayment has been received until the redemption date for the Outstanding Bonds. Step 9: Subtract the amount computed pursuant to Step 8 from the amount computed pursuant to Step 7 (the "Defeasance Requirement"). Step 10. Step 11. Step 12. The administrative fees and expenses associated with the prepayment will be determined by the Administrator and include the costs of computing the prepayment, redeeming Bonds, and recording any notices to evidence the prepayment and the redemption (the 'Administrative Fees and Expenses"). If and to the extent so provided in the Bond Indenture, a reserve fund credit shall be calculated as a reduction in the applicable reserve fund for the Outstanding Bonds to be redeemed pursuant to the prepayment (the "Reserve Fund Credit"). The Facilities Special Tax prepayment is equal to the sum of the amounts computed pursuant to Steps 3, 5, 6, 9, and 10, less the amount computed pursuant to Step 11 (the "Prepayment Amount"). East Ranch CFD No. 2023-1 17 October 25, 2023 160 Attachment 2 Exhibit A - Resolution Forming the City of Dublin Community Facilities District No. 2023-1 (East Ranch) Step 13. From the Prepayment Amount, the amounts computed pursuant to Steps 3, 6, and 9 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Outstanding Bonds or make debt service payments. The amount computed pursuant to Step 5 shall be deposited into the Improvement Fund. The amount computed pursuant to Step 10 shall be retained in the account or fund that is established to pay Administrative Expenses. Once a full prepayment of a Parcel's Facilities Special Tax obligation has been received, a Notice of Cancellation of Facilities Special Tax Lien shall be recorded against the Parcel to reflect the discharge of the Parcel's obligation to pay the Facilities Special Tax. However, a Notice of Cancellation of Facilities Special Tax Lien shall not be recorded until all Facilities Special Taxes levied on the Parcel in the current or prior Fiscal Years have been collected. 2. Partial Prepayment A partial prepayment may be made in an amount equal to any percentage of full prepayment desired by the party making a partial prepayment, except that the full amount of Administrative Fees and Expenses determined in Step 10 shall be included in the partial prepayment. The Maximum Facilities Special Tax that can be levied on a Parcel after a partial prepayment is made shall be equal to the portion of the Maximum Facilities Special Tax that was not prepaid. Once a partial prepayment has been received, an Amended Notice of Facilities Special Tax Lien shall be recorded against the Parcel to reflect the reduced Facilities Special Tax lien for the Parcel, and the Administrator shall update Attachment 2 to show the revised Expected Maximum Facilities Special Tax Revenues. However, an Amended Notice of Facilities Special Tax Lien shall not be recorded until all Facilities Special Taxes levied on the Parcel in the current or prior Fiscal Years have been collected. 3. Maintaining Required Coverage Notwithstanding the foregoing, if at any point in time the Administrator determines that the Maximum Facilities Special Tax revenue that could be collected from Taxable Property that remains subject to the Facilities Special Tax after the proposed prepayment would be less than the Required Coverage on Bonds that will remain outstanding after defeasance or redemption of Bonds from proceeds of the estimated prepayment, the amount of the prepayment shall be increased until the amount of Bonds defeased or redeemed is sufficient to reduce remaining annual debt service to a point at which Required Coverage is maintained. I. INTERPRETATION OF RMA The City reserves the right to make minor administrative and technical changes to this document that do not materially affect the rate and method of apportioning Special Taxes. In addition, the interpretation and application of any section of this document shall be left to the City's discretion. Interpretations may be made by the City by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this RMA. East Ranch CFD No. 2023-1 18 October 25, 2023 161 Attachment 2 Exhibit A - Resolution Forming the City of Dublin Community Facilities District No. 2023-1 (East Ranch) ATTACHMENT 1 City of Dublin Community Facilities District No. 2023-1 (East Ranch) Identification of Tax Zones and Expected Lot Layout 162 Attachment 2 Exhibit A - Resolution Forming the City of Dublin Community Facilities District No. 2023-1 (East Ranch) 0 Attachment 1 L 1 I 1 1 I 1 I 1 I I I I I mi 0 w•^ V J NEIGHBORHOOD �.7 (cA I co LC) co w w w w O 0 0 0 NJ N N N 101 .� aimeno �\ m1 �i. :� r I OM ►i INDICATES AFFORDABLE UNITS 0- 0 CO w >< VJ w Z &) OI_ NZ HXD Z w u- oQ z 0 o GILL L.L i- UQ Z Z Q 0 CALIFORNIA J m 0 I I 1 I I I I 1 I. I I L_T----L L__ L____) 1—' wth,. ocy) -VI I 1 � w p� I- m • 0 < W O a u- Q� I1 w Q 0 V) ▪ CO z w°�° 0- 0 I I I< 124 O N O N wo ww Vi Z PLEASANTON P:\19343-T\DES\OVERALL EXHIBITS\PLAN LIMITS-PHASING\TAX ZONE EXHIBIT.DWG C O N Attachment 2 Exhibit A - Resolution Forming the City of Dublin Community Facilities District No. 2023-1 (East Ranch) ATTACHMENT 2 City of Dublin Community Facilities District No. 2023-1 (East Ranch) Expected Land Uses and Expected Maximum Facilities Special Tax Revenues Tax Zone and Land Use Category Tax Zone 1 Single Family Property Affordable Housing Units Other Property Tax Zone 2 Single Family Property Affordable Housing Units Other Property Tax Zone 3 Single Family Property Affordable Housing Units Other Property Tax Zone 4 Single Family Property Affordable Housing Units Other Property Tax Zone 5 Single Family Property Affordable Housing Units Other Property Tax Zone 6 Single Family Property Affordable Housing Units Other Property Expected Land Uses 99 Residential Units 2 Residential Units 0 Acres 96 Residential Units 2 Residential Units 0 Acres 85 Residential Units 6 Residential Units 0 Acres 85 Residential Units 0 Residential Units 0 Acres 94 Residential Units 4 Residential Units 0 Acres 96 Residential Units 4 Residential Units 0 Acres Base Facilities Special Tax (FY 2023-24) * $5,850 per Res.Unit $0 per Res.Unit $28,741 per Acre $4,600 per Res.Unit $0 per Res.Unit $35,934 per Acre $4,400 per Res.Unit $0 per Res.Unit $28,679 per Acre $3,750 per Res.Unit $0 per Res.Unit $33,034 per Acre $3,300 per Res.Unit $0 per Res.Unit $37,882 per Acre $2,000 per Res.Unit $0 per Res.Unit $38,373 per Acre Expected Maximum Facilities Special Tax Revenues (FY 2023-24 $) Expected Maximum Facilities Special Tax Revenues (FY 2023-24) * $579,150 $0 $0 $441,600 $0 $0 $374,000 $0 $0 $318,750 $0 $0 $310,200 $0 $0 $192,000 $0 $0 $2,215,700 * On July 1, 2024, and each July 1 thereafter, all dollar amounts shown above shall be increased by two percent (2%) of the amount in effect in the prior Fiscal Year. 164 Attachment 4 RESOLUTION NO. XX-23 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN DETERMINING NECESSITY TO INCUR BONDED INDEBTEDNESS FOR CITY OF DUBLIN COMMUNITY FACILITIES DISTRICT NO. 2023-1 (EAST RANCH) WHEREAS, on October 17, 2023, the City Council (the "City Council") of the City of Dublin (the "City") adopted its Resolution No. 111-23 (the "Resolution of Intention"), stating its intention to form the City of Dublin Community Facilities District No. 2023-1 (East Ranch) (the "CFD"), pursuant to the Mello -Roos Community Facilities Act of 1982, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with Section 53311, of the California Government Code (the "Act"); and WHEREAS, on October 17, 2023, this City Council also adopted its Resolution No. 112-23 (the "Resolution of Intention to Incur Indebtedness") stating its intention to incur bonded indebtedness within the boundaries of the CFD in an amount not to exceed $67,000,000 for the purpose of financing the costs of the Facilities (defined herein); and WHEREAS, this City Council has held a noticed public hearing as required by the Act about the determination to proceed with the formation of the CFD, the provision of certain services and facilities by the CFD and the rate and method of apportionment of the special taxes to be levied within the CFD to pay for certain services and the Facilities, including the principal and interest on the proposed bonded indebtedness in the CFD for the Facilities, and the administrative costs of the City relative to the CFD; and WHEREAS, subsequent to the public hearing, this City Council adopted a resolution entitled "Forming the City of Dublin Community Facilities District No. 2023-1 (East Ranch)" (the "Resolution of Formation"); and WHEREAS, this City Council has also held a noticed public hearing as required by the Act relative to the matters material to the questions set forth in the Resolution of Intention to Incur Indebtedness; and WHEREAS, no written protests with respect to the matters material to the questions set forth in the Resolution of Intention to Incur Indebtedness have been filed with the City Clerk. NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Dublin hereby finds, determines and resolves as follows: 1. Recitals. The foregoing recitals are true and correct. Reso. No. XX-23, Item X.X, Adopted XX/XX/2023 Page 1 of 3 165 2. Necessity. This City Council deems it necessary to incur bonded indebtedness in the maximum aggregate principal amount of $67,000,000 within the boundaries of the CFD for the purpose of financing the costs of all or a portion of the facilities defined in the Resolution of Formation (the "Facilities"), including, but not limited to, the costs of issuing and selling bonds to finance all or a portion of the Facilities and the costs of the City in establishing and administering the CFD. Indebtedness subject to this limit shall only include indebtedness evidenced by bonds or notes and shall not include bonds described in Section 53364.2(e) of the Act. 3. Entire CFD Liable. The whole of the CFD shall pay for the bonded indebtedness through the levy of the special tax. The tax is to be apportioned in accordance with the formula set forth in Exhibit A to the Resolution of Formation, as the same may be amended in accordance with the Act. 4. Bonds. Bonds in the maximum amount set forth in Section 2 are hereby authorized subject to voter approval. The bonds may be issued in one or more series and mature and bear interest at such rate or rates, payable semiannually or in such other manner, all as this City Council or its designee shall determine, at the time or times of sale of such bonds; provided, however, that the interest rate or rates shall not to exceed the maximum interest rate permitted by applicable law at the time of sale of the bonds and any series thereof shall have a maximum term of not to exceed 40 years. 5. Election. The proposition of incurring the bonded indebtedness herein authorized shall be submitted to the qualified electors of the CFD and shall be consolidated with elections on the proposition of levying special taxes within the CFD and the establishment of an appropriations limit for the CFD pursuant to Section 53353.5 of the Act. The time, place and further particulars and conditions of such election shall be as specified by separate resolution of this City Council. 6. Effective Date. This Resolution shall take effect upon its adoption. {Signatures on Following Page} Reso. No. XX-23, Item X.X, Adopted XX/XX/2023 Page 2 of 3 166 PASSED, APPROVED, AND ADOPTED this day of , 2023, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk Reso. No. XX-23, Item X.X, Adopted XX/XX/2023 Page 3 of 3 167 Attachment 5 RESOLUTION NO. XX-23 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN CALLING A SPECIAL ELECTION FOR CITY OF DUBLIN COMMUNITY FACILITIES DISTRICT NO. 2023-1 (EAST RANCH) WHEREAS, the City Council (the "City Council") of the City of Dublin (the "City") has adopted a resolution entitled "Forming the City of Dublin Community Facilities District No. 2023-1 (East Ranch)" (the "Resolution of Formation"), ordering the formation of the City of Dublin Community Facilities District No. 2023-1 (East Ranch) (the "CFD"), authorizing the levy of special taxes on property within the CFD and preliminarily establishing an appropriations limit for the CFD, all pursuant to the Mello -Roos Community Facilities Act of 1982, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with Section 53311, of the California Government Code (the "Act"); and WHEREAS, this City Council has also adopted a resolution entitled "Determining Necessity to Incur Bonded Indebtedness for the City of Dublin Community Facilities District No. 2023-1 (East Ranch)" (the "Resolution Determining Necessity"), determining the necessity to incur bonded indebtedness in the maximum aggregate principal amount of $67,000,000, excluding bonds described in Section 53364.2(e) of the Act, upon the security of the special tax to be levied within the CFD for facilities and bonds pursuant to the Act; and WHEREAS, pursuant to the provisions of the Resolution of Formation and the Resolution Determining Necessity, the propositions of the levy of the special tax, the establishment of the appropriations limit and the incurring of the bonded indebtedness shall be submitted to the qualified electors of the CFD as required by the provisions of the Act. NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Dublin hereby finds, determines and resolves as follows: 1. Issues Submitted. Pursuant to Sections 53326, 53351 and 53325.7 of the Act, the issues of the levy of the special tax, the incurring of bonded indebtedness and the establishment of the appropriations limit shall be submitted to the qualified electors (as defined below) of the CFD at an election called therefor as provided below. 2. Qualified Electors. This City Council hereby finds that fewer than 12 persons have been registered to vote within the territory of the CFD for each of the 90 days preceding the close of the public hearings heretofore conducted and concluded by this Council for the purposes of these proceedings. Accordingly, and pursuant to Section 53326 of the Act, this City Council finds that, for these proceedings, the qualified electors are the landowners within the CFD and that the vote shall be by such landowners or their Reso. No. XX-23, Item X.X, Adopted XX/XX/2023 Page 1 of 4 168 authorized representatives, each having one vote for each acre or portion thereof such landowner owns in the CFD as of the close of the public hearings. 3. Conduct of Election. This City Council hereby calls a special election to consider the measures described in section 1 above, which election shall be held on December 5, 2023, and the results thereof canvassed at the meeting of this City Council on December 5, 2023. The City Clerk is hereby designated as the official to conduct the election and to receive all ballots until 7:00 p.m. on the election date. It is hereby acknowledged that the City Clerk has on file the Resolution of Formation, a certified map of the boundaries of the CFD, and a sufficient description to allow the City Clerk to determine the electors of the CFD. Pursuant to Section 53327 of the Act, the election shall be conducted by messenger or mail -delivered ballot pursuant to Section 4000 of the California Elections Code. This City Council hereby finds that paragraphs (a), (b), and (c) (1) of Section 4000 and Section 4108 are applicable to this special election, except that Sections 53326 and 53327 of the Act shall govern for purposes of determining the date of the election. 4. Ballot. As authorized by Section 53353.5 of the Act, the three propositions described in section 1 above shall be combined into a single ballot measure, the form of which is attached hereto as Exhibit "A" and by this reference incorporated herein and the form of ballot is hereby approved. The City Clerk is hereby authorized and directed to cause a ballot, in substantially the form of Exhibit "A," to be delivered to each of the qualified electors of the CFD. Each ballot shall indicate the number of votes to be voted by the respective landowner to which the ballot pertains. Each ballot shall be accompanied by all supplies and written instructions necessary for the use and return of the ballot. 5. Waivers. This Council hereby further finds that the provisions of Section 53326 of the Act requiring a minimum of 90 days following the adoption of the Resolution of Formation to elapse before the special election are for the protection of the qualified electors of the CFD. There is on file with the City Clerk a written waiver executed by all of the qualified electors of the CFD allowing for a shortening of the time for the special election to expedite the process of formation of the CFD and waiving any requirement for notice, analysis and arguments in connection with the election. Accordingly, this Council finds and determines that the qualified electors have been fully apprised of and have agreed to the shortened time for the election and waiver of analysis and arguments, and have thereby been fully protected in these proceedings. This Council also finds and determines that the City Clerk has concurred in the shortened time for the election. Analysis and arguments with respect to the ballot measures are hereby waived, as provided in Section 53327 of the Act. 6. Accountability. The City Council hereby finds that the proposed debt issuance constitutes a "local bond measure" within the meaning of Sections 53410, et seq. of the California Government Code. As a result, the bond measure shall include the propositions set forth above and the following: (a) the specific purpose of the bonds shall be as set forth in the propositions; (b) any proceeds received from the sale of any bonds Reso. No. XX-23, Item X.X, Adopted XX/XX/2023 Page 2 of 4 169 shall be applied only to the purposes set forth in the propositions; (c) the proceeds of any bonds shall be deposited into special accounts to be created therefor as part of the issuance of the bonds; and (d) the City shall cause a report to be prepared annually under Section 53411 of the Government Code. 7. Effective Date. This Resolution shall take effect upon its adoption. PASSED, APPROVED, AND ADOPTED this day of , 2023, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk Reso. No. XX-23, Item X.X, Adopted XX/XX/2023 Page 3 of 4 170 EXHIBIT A CITY OF DUBLIN COMMUNITY FACILITIES DISTRICT NO. 2023-1 (EAST RANCH) OFFICIAL BALLOT MEASURE SPECIAL TAX ELECTION BALLOT MEASURE: Shall the measure pursuant to which (i) the City of Dublin shall incur an indebtedness and issue bonds in the maximum aggregate principal amount of not to exceed $67,000,000, excluding bonds described in Section 53364.2(e) of the Act, with interest at a rate or rates not to exceed the maximum interest rate permitted by law at the time of sale of such bonds on behalf of the City of Dublin Community Facilities District No. 2023-1 (East Ranch) (the "CFD"), the proceeds of which bonds will be used to acquire and/or construct certain facilities and pay for the costs of issuing the bonds and related expenses; (ii) special taxes payable solely from lands within the CFD shall be levied annually, commencing in the City's fiscal year 2023-24, upon lands within the CFD to pay for the principal and interest upon such bonds, to pay the costs of the City in administering the CFD, and to pay for the costs of acquiring and/or constructing certain facilities and paying for certain services; and (iii) the initial annual appropriations limit of the CFD shall be established in the amount of $67,000,000 be adopted? Reso. No. XX-23, Item X.X, Adopted XX/XX/2023 Page 4 of 4 YES: NO: 171 Attachment 6 RESOLUTION NO. XX-23 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN DECLARING RESULTS OF SPECIAL ELECTION AND DIRECTING RECORDING OF NOTICE OF SPECIAL TAX LIEN FOR CITY OF DUBLIN COMMUNITY FACILITIES DISTRICT NO. 2023-1 (EAST RANCH) WHEREAS, the City Council (the "City Council") of the City of Dublin (the "City") has adopted a resolution entitled "Forming City of Dublin Community Facilities District No. 2023-1 (East Ranch)" (the "Resolution of Formation"), ordering the formation of the City of Dublin Community Facilities District No. 2023-1 (East Ranch) (the "CFD") authorizing the levy of special taxes on property within the CFD and preliminarily establishing an appropriations limit for the CFD, all pursuant to the Mello -Roos Community Facilities Act of 1982, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with Section 53311, of the California Government Code (the "Act"); and WHEREAS, this City Council has also adopted a resolution entitled "Determining Necessity to Incur Bonded Indebtedness for City of Dublin Community Facilities District No. 2023-1 (East Ranch)" (the "Resolution of Necessity"), determining the necessity to incur bonded indebtedness in the maximum aggregate principal amount of $67,000,000, excluding bonds described in Section 53364.2(e) of the Act, upon the security of the special tax to be levied within the CFD for facilities and bonds pursuant to the Act; and WHEREAS, under the provisions of the Resolution of Formation and the Resolution Necessity and pursuant to "Calling Special Election for City of Dublin Community Facilities District No. 2023-1 (East Ranch)" (the "Election Resolution") heretofore adopted by this City Council the propositions of the levy of the special tax, the establishment of the appropriations limit and the incurring of the bonded indebtedness were submitted to the qualified electors of the CFD as required by the provisions of the Act; and WHEREAS, pursuant to the terms of the Election Resolution, which are by this reference incorporated herein, the special election has been held and the City Clerk has on file a Canvass and Statement of Results of Election (the "Canvass"), a copy of which is attached hereto as Exhibit A; and WHEREAS, this City Council has reviewed the Canvass, finds it appropriate and wishes to complete its proceedings for the CFD. NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Dublin hereby finds, determines and resolves as follows: 1. Recitals. The foregoing recitals are all true and correct. Reso. No. XX-23, Item X.X, Adopted XX/XX/2023 Page 1 of 3 172 2. Issues Presented. The issues presented at the special election were the levy of special taxes within the CFD, the incurring of a bonded indebtedness in the maximum aggregate principal amount of $67,000,000, excluding bonds described in Section 53364.2(e) of the Act, and the approval of an initial annual appropriations limit of not to exceed $67,000,000, subject to increase in accordance with law, all pursuant to the Resolution of Formation and the Resolution of Necessity. 3. Canvass and Issues Approved. The Council hereby approves the Canvass and finds that it shall be a permanent part of the record of its proceedings for the CFD. Pursuant to the Canvass, the issues presented at the special election were approved by the qualified electors of the CFD by more than two-thirds (2/3) of the votes cast at the special election. 4. Proceedings Approved. Pursuant to the voter approval, the CFD is hereby declared to be fully formed with the authority to levy the special taxes, to incur the approved bonded indebtedness and to have the established appropriations limit, all as heretofore provided in these proceedings and in the Act. It is hereby found that all prior proceedings and actions taken by this City Council with respect to the CFD were valid and in conformity with the Act. 5. Notice of Tax Lien. The City Clerk is hereby directed to complete, execute and cause to be recorded in the office of the County Recorder of the County of Alameda a notice of special tax lien in the form required by the Act, such recording to occur no later than fifteen (15) days following adoption by the Council of this Resolution. 6. Effective Date. This Resolution shall take effect upon its adoption. PASSED, APPROVED, AND ADOPTED this day of , 2023, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk Reso. No. XX-23, Item X.X, Adopted XX/XX/2023 Page 2 of 3 173 CANVASS AND STATEMENT OF RESULT OF ELECTION CITY OF DUBLIN COMMUNITY FACILITIES DISTRICT NO. 2023-1 (EAST RANCH) I hereby certify that on December 5, 2023, I canvassed the returns of the election held on December 5, 2023, in the City of Dublin Community Facilities District No. 2023- 1 (East Ranch) and the total number of ballots cast in said election and the total number of votes cast for and against the measure are as follows and the totals as shown for and against the measure are full, true and correct: Qualified Landowner Votes Votes Cast City of Dublin Community Facilities District No. 2023-1 (East Ranch), Special Tax Election, December 5, 2023 YES NO BALLOT MEASURE: Shall the measure pursuant to which (i) the City of Dublin shall incur an indebtedness and issue bonds in the maximum aggregate principal amount of not to exceed $67,000,000, excluding bonds described in Section 53364.2(e) of the Act, with interest at a rate or rates not to exceed the maximum interest rate permitted by law at the time of sale of such bonds on behalf of the City of Dublin Community Facilities District No. 2023-1 (East Ranch) (the "CFD"), the proceeds of which bonds will be used to acquire and/or construct certain facilities and pay for the costs of issuing the bonds and related expenses; (ii) special taxes payable solely from lands within the CFD shall be levied annually, commencing in the City's fiscal year 2023-24, upon lands within the CFD to pay for the principal and interest upon such bonds, to pay the costs of the City in administering the CFD, and to pay for the costs of acquiring and/or constructing certain facilities and paying for certain services; and (iii) the initial annual appropriations limit of the CFD shall be established in the amount of $67,000,000 be adopted? IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND this day of , 2023. By: City Clerk Reso. No. XX-23, Item X.X, Adopted XX/XX/2023 Page 3 of 3 174 Attachment 7 ORDINANCE NO. XX — 23 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DUBLIN LEVYING SPECIAL TAXES WITHIN CITY OF DUBLIN COMMUNITY FACILITIES DISTRICT NO. 2023-1 (EAST RANCH) WHEREAS, on October 17, 2023, this City Council (the "City Council") of the City of Dublin (the "City"), adopted a resolution stating its intention to establish its City of Dublin Community Facilities District No. 2023-1 (East Ranch) (the "CFD") pursuant to the Mello - Roos Community Facilities Act of 1982, as amended, sections 53311, et. seq., of the California Government Code (the "Act"), to finance public services and the acquisition and construction of certain facilities; and WHEREAS, notice was published as required by the Act relative to the intention of this City Council to form the CFD, to provide for financing certain services and certain facilities and to incur bonded indebtedness for the CFD in an amount not to exceed $67,000,000, excluding bonds described in Section 53364.2(e) of the Act; and WHEREAS, this City Council has held noticed public hearings as required by the Act relative to (i) the determination to proceed with the formation of the CFD, and the rate and method of apportionment of the special taxes to be levied within the CFD to finance a portion of the costs of the services and the facilities and (ii) the issuance of not to exceed $67,000,000 of bonded indebtedness for the CFD, excluding bonds described in Section 53364.2(e) of the Act; and WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the formation of the CFD, and the levy of said special taxes within the CFD were heard, substantial evidence was presented and considered by this City Council and a full and fair hearing was held; and WHEREAS, subsequent to the hearing, this City Council adopted resolutions entitled "Forming City of Dublin Community Facilities District No. 2023-1 (East Ranch)" (the "Resolution of Formation"), "Determining Necessity to Incur Bonded Indebtedness for City of Dublin Community Facilities District No. 2023-1 (East Ranch)" (the "Resolution of Necessity") and "Calling Special Election for City of Dublin Community Facilities District No. 2023-1 (East Ranch)," which resolutions defined the public services (the "Services") and public facilities to be financed by the CFD (the "Facilities"), established the CFD, authorized the levy of the special taxes with the CFD, determined the necessity to incur bonded indebtedness in the CFD and called an election within the CFD on the propositions of incurring indebtedness, levying a special tax, and establishing an appropriations limit within the CFD, respectively; and Reso. No. XX-23, Item X.X, Adopted XX/XX/2023 Page 1 of 3 175 WHEREAS, on December 5, 2023, a special election was held within the CFD at which the eligible landowner -electors approved such propositions by the two-thirds vote required by the Act. NOW, THEREFORE, the City Council of the City of Dublin does ordain as follows: SECTION 1. LEVY OF SPECIAL TAX By the passage of this Ordinance, the City Council hereby authorizes and levies special taxes within the CFD pursuant to the Act, at the rate and in accordance with the formula (the "Rate and Method") set forth in the Resolution of Formation, which Resolution of Formation is by this reference incorporated herein, as the same may be amended in accordance with the Act. The special taxes are hereby levied commencing in fiscal year 2023-24 and in each fiscal year thereafter until payment in full of the Services and any bonds issued by the City for the CFD (the "Bonds") or such longer period provided in the Rate and Method, as contemplated by the Resolution of Formation and the Resolution of Necessity, as the same may be amended in accordance with the Act, and all costs of administering the CFD. SECTION 2. ANNUAL CALCULATION OF LEVY The Finance Director of the City is hereby authorized and directed each fiscal year to determine the specific special tax rate and amount to be levied for the next ensuing fiscal year for each parcel of real property within the CFD, in the manner and as provided by the Rate and Method. SECTION 3. EXEMPTIONS; MAXIMUM LEVY OF SPECIAL TAXES Except as set forth in the Rate and Method, properties or entities of the State, federal or local governments shall be exempt from any levy of special taxes. In no event shall the special taxes be levied on any parcel within the CFD in excess of the maximum tax specified in the Rate and Method. SECTION 4. AUTHORIZED USES OF SPECIAL TAXES All of the collections of the special taxes shall be used as provided for in the Act and the Rate and Method, including, but not limited to, the payment of principal and interest on the Bonds, the replenishment of the reserve fund for the Bonds, the payment of the costs of the Services and the Facilities, the payment of the costs of the City in administering the CFD, and the costs of collecting and administering the special tax. SECTION 5. COLLECTION OF SPECIAL TAXES The special taxes shall be collected in the same manner as ordinary ad valorem taxes are collected and shall have the same lien priority and be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad Reso. No. XX-23, Item X.X, Adopted XX/XX/2023 Page 2 of 3 176 valorem taxes; provided, however, that this City Council may provide for other appropriate methods of collection by resolution of this City Council. In addition, the provisions of Section 53356.1 of the Act shall apply to delinquent payments of the special taxes. The Finance Director of the City is hereby authorized and directed to provide all necessary information to the auditor/tax collector of the County of Alameda in order to effect proper billing and collection of the special tax, so that the special taxes shall be included on the secured property tax roll of the County of Alameda for fiscal year 2023-24 and for each fiscal year thereafter until the payment in full of the Services and any Bonds or such longer period of time provided in the Rate and Method. SECTION 6. SEVERABILITY If for any reason any portion of this Ordinance is found to be invalid, or if the special taxes are found inapplicable to any particular parcel within the CFD by a court of competent jurisdiction, the balance of this Ordinance and the application of the special taxes to the remaining parcels within the CFD shall not be affected. SECTION 7. POSTING OF ORDINANCE The Mayor shall sign this Ordinance and the City Clerk shall cause the same to be posted in at least 3 public places in the City of Dublin in accordance with Section 36933 of the Government Code of the State of California. SECTION 8. EFFECTIVE DATE This Ordinance shall take effect 30 days from the date of final passage. PASSED, APPROVED, AND ADOPTED this day of , 2023, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk Reso. No. XX-23, Item X.X, Adopted XX/XX/2023 Page 3 of 3 177 East Ranch Community Facilities District Formation DUBLIN CALIFORNIA 178 Overview of Presentation • Review of tonight's recommended actions • Review of Prior City Council actions • Overview of CFD No. 2023- I • Discussion of CFD Public Hearing Process Recommended Actions • Receive the Community Facilities District Report • Conduct a Public Hearing — Form East Ranch CFD No. 2023- I — Levying a Special Tax and Determining Necessity to Incur Bonded Indebtedness • Following Public Hearing, if no majority protest, adopt — Resolution to Form CFD — Resolution Determining Necessity to Incur Bonded Indebtedness — Resolution Calling for Special Election • Open the ballots and tabulate results, if 2/3rds approve — Adopt Resolution certifying results — Introduce and waive the first reading of the Special Tax Ordinance for CFD Prior City Counci Discussion/Actions • April 18, 2023, discussed the proposed East Ranch Project and CFD • June 20, 2023, provided guidance to staff to limit the Effective Tax Rate on residential units to 1.58% of the base sales price • September 19, 2023, approved a Deposit and Reimbursement Agreement with developer • October 17, 2023, approved the Resolutions of Intention and set the date and time of tonight's Public Hearing Overview of CFD No. 2023- I • The East Ranch Project includes 165.5 acres and will include 576 residential units (including 18 Affordable Units that will be exempt from paying special taxes) • The Project consist of six neighborhoods that will include the following: — 459 conventional single-family homes — 14 zero lot -line single-family duet homes — IOOTownhomes — Two neighborhood parks totaling 11.5 acres — Two -acre Public/Semi-Public site T /NTENSTATE CA rwar+e - uAiLE,r Map of CFD No.2023-I 3T VICINITY MAP N r,9. 1 TE GRAPHIC SCALE 100 0 ZOO 400 M3O CAAkNP} f iacG = 100 FL «RUB If aasas�z�„ a0 PROPOSED BOUNDARIES OF CITY OF DUBLIN COMMUNITY FACILITIES DISTRICT NO.2023-1 (EAST RANCH) COUNTY OF ALAMEDA. STATE OF CALIFORNIA NOTE 1, HET LRLNCE IS HEREBY MARE TO THE IAAPS AND OLEOS CI- RECORD IN T HE OFFICE OF THE ASSESSOR OF THE COUNTY Of ALAMEDA FOR THE DETAILED DESCRIPTION OF THE LINES AND DIMENSIONS OF ANY PARCELS SHOWN !+CAEON. LEGEND GO5.0002.O0141 ASSESSORS PARCEL NUOAEER ASSESSORS PARCEL LOT LINE COMMUNITY FAG IJ T IES OISTRI CT NO, 20251 BOUNDARY IP TIM DUBLIN CALIFORNIA 183 Discussion of Proposed CFD No. 2023-1 • The East Ranch Development originally proposed to have: — Services CFD that would fund the maintenance of public streets. — Facilities CFD that would help fund construction of certain public infrastructure and development impact fees associated with the project • After further discussion it was determined best approach was to establish a single CFD, that would levy two separate special taxes, one to pay for services and one to pay for facilities, instead of creating two separate CFDs. Discussion of Proposed CFD No. 2023-1 • The City and Trumark have agreed to cap the maximum effective tax rate for the East Ranch CFD at 1.58% of the average sales price for residential units in each tax zone. • The East Ranch project is divided into six tax zones, based on the type and size of the homes being sold.The initial maximum tax rate is based on the average estimated selling price of homes in each zone. Proposed Effective Tax Rates for CFD Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 Zone 6 65 x 100 Iots 55 x 95 lots 50 x 110 Iots 49.5 x 80 Iots Cluster lots Townhomes Estimated Average Base Sales Price (1) 1 $ 2,657,000.00 $ 2,204,000.00 $ 2,143,000.00 $ 1,872,000.00 $ 1,711,000.00 $ 1,267,000.00 Ad Valorem (2) $ 33,547.28 $ 27,827.70 $ 27,057.52 $ 23,635.87 $ 21,603.09 $ 15,997.14 Other Charges (3) $ 2,295.48 $ 2,096.48 $ 2,042.48 $ 1,859.48 $ 1,809.48 $ 1,672.48 Proposed CFD No. 2023-1 Services Special Taxes (4) $ 381.00 $ 381.00 $ 381.00 $ 381.00 $ 381.00 $ 381.00 Proposed CFD No. 2023-1 Special Taxes (4) $ 5,850.00 $ 4,600.00 $ 4,400.00 $ 3,750.00 $ 3,300.00 $ 2,000.00 Total $ 42,073.76 $ 34,905.18 $ 33,881.00 $ 29,626.35 $ 27,093.57 $ 20,050.62 Total Proposed CFD No. 2023-1 Taxes $ 6,231.00 $ 4,981.00 $ 4,781.00 $ 4,131.00 $ 3,681.00 $ 2,381.00 Estimated Effective Tax Rate 1 1.58% 1.58% 1.58% 1.58% 1.58% 1.58% (1) Prices per RCLCO report dated 10.04.23 (2) Estimated at 1.2626%per DPFG analysis dated 10.03.23 (3) Estimate per DPFG analysis dated 10.03.23 (4) Per Draft RMA from Goodwin Consulting Group Facility Special Tax Prepayments • Section H. of the Rate and Method of Apportionment (RMA) provides an option for homeowners to make a full prepayment of the Facility Special Tax. • Section H. also provides for a partial prepayment in an amount equal to any percentage of the full prepayment. Maximum Bond Authorization • The Resolutions included in tonight's packet set the bonded indebtedness limit at an amount not to exceed $67,000,000 • The maximum bond authorization is based on the maximum special tax revenues thru 2060, a conservative 3% interest rate, and a 25% cushion. • The actual estimated bonding capacity, based on current interest rates, is approximately $35 Million. The amount of bonds issued for the CFD will not be determined until the CFD Bonds are actually sold. • The maximum special taxes are set by the RMA and are not impacted by the interest rate on the CFD Bonds or by the amount of bonds authorized.The interest rate on the CFD Bonds impact the amount of bond proceeds available to fund public infrastructure. Staff Recommends City Council • Receive the Community Facilities District Report • Conduct a Public Hearing Regarding — Establishment of CFD No 2023-1 (East Ranch) — Deeming it necessary to incur indebtedness for CFD No. 2023-land levy special taxes • Following Public Hearing, if no majority protest has been filed pertaining to the establishment of CFD No. 2023- I or the levy of special taxes, initially adopt the following: — A Resolution Forming the City of Dublin Community Facilities District No. 2023-1 (East Ranch) — A Resolution Determining Necessity to Incur Bonded Indebtedness for City of Dublin Community Facilities District No. 2023-1 (East Ranch) — A Resolution Calling Special Election for City of Dublin Community Facilities District No. 2023-1 (East Ranch) Staff Recommends City Counci (Cont.) • Following the adoption of the resolutions staff recommends: — The City Clerk announce the results of the election to be held within CFD No. 2023- I to reveal if the propositions have received the affirmative 2/3rds vote. • If propositions have received the affirmative vote of two-thirds of the votes cast, Staff Recommends that the City Council take the following actions: — Adopt the Resolution Declaring Results of Special Election and Directing Recording of Notice of Special Tax Lien for City of Dublin Community Facilities District No. 2023-1 (East Ranch) — Waive the first reading and Introduce the Ordinance Levying Special Taxes Within City of Dublin Community Facilities District No. 2023-1 (East Ranch) Next Steps Following tonight's Public Hearing, the proposed schedule to complete the formation of the CFD is as follows: • Record Notice of Special Tax Lien (within 15 days after tonight's meeting) • Second Reading and Adoption of Ordinance levying Special Tax, scheduled for December 19, 2023 • Effective Date of Special Tax Ordinance (30 days after adoption, anticipated to be January 19, 2024) Questions?