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Home My WebLink AboutCC AG PKT 2008-12-08 #JAGENDA STAFF REPORT DATE: December 8, 2008 TO: Honorable Mayor and City Council THRU: David Carmany, City Manager FROM: Robbeyn Bird, Director of Administrative Services SUBJECT: ANNUAL REPORT FOR CITY OF SEAL BEACH COMMUNITY FACILITIES DISTRICT NO. 2002-1 (HERON POINTE) - PURSUANT TO THE LOCAL AGENCY SPECIAL TAX AND BOND ACCOUNTABILITY ACT SUMMARY OF REQUEST: Receive and File Report. Under state law, when a Community Facilities District (also known as Mello-Roos District) is formed, the Finance Department is required to submit a report to the City Council reporting on its activity over the past year and its status. This report meets the criteria of the state law. BACKGROUND: The purpose of this report is to comply with the provisions of the Local Agency Special Tax and Bond Accountability Act (the "Act"). The Act provides that any local special tax measure that is subject to voter approval on or after January 1, 2001, that would provide for the imposition of a special tax by a local agency shall require the chief fiscal officer of the levying local agency to file a report with its governing body no later than January 1, 2002, and at least once a year thereafter. The annual report shall contain both of the following: ^ The amount of funds collected and expended, and ^ The status of any project required or authorized to be funded as identified in subdivision (a) of Section 50075.1 and Article 1.5, Section 53410. In compliance with the required report the Finance Department submits the following information: ^ City of Seal Beach Community Facilities District No. 2002-1 (Heron Pointe) - On September 23, 2002, the landowners within Community Facilities District No. 2002-1 (Heron Pointe) voted to incur an indebtedness and issue bonds in the maximum amount of $5,000,000, and for the levying of a special tax. Agenda Item J Page 2 ^ The City of Seal Beach Community Facility District No. 2002-1 (Heron Pointe) bonds were issued on August 4, 2005 in the amount of $3,985,000.00. ^ The amount of funds collected and expended between November 1, 2007 and October 31, 2008 are shown on the attached report. At this time, the following amounts of work have been completed within the CFD boundary: ^ Sanitary Sewer Facilities -100% ^ Water Facilities - 100% ^ Roadway Facilities -100% ^ Park, Access, Landscape and Wall Facilities - 100% ^ Dry Utilities and Joint Trench -100% ^ Grading - 100% ^ Engineering Plan Preparation - 100% FISCAL IMPACT: None. RECOMMENDATION: Receive and File Report. (?e~6.d.~...h,.. ~Z3w~ Robbeyn Bird, Director of Administrative Services Attachment: NOTED AND APPROVED: 19-~ David Carma y, City Manager A. City of Seal Beach Community Facilities District No. 2002-1 (Heron Pointe) Special Tax Bonds, Series 2005 Annual Report `~,~~ WILLDAN Fnancial Services City of Seal Beach Community Facilities District 2002-01 DISTRICT PARTICIPANTS - - - -- _ • _ Robbeyn Bird - - ' _• Director of Administrative Services - - - - _ - City of Seal Beach - - ' - _ - - - - - - - '211 8th Street - ~ - - ~ - , - - Seal Beach, CA 90740 ~ - - , - - - - - - -- Phorie (562) 431-2527 x1311 - - - - __ - - _ _ _ - Fax 562-493-9857 - _ - , - - ' - _ -- - - -- - rbird~ci.seal-beach.ca.us - - _ - www.ci.seal-beach.ca.us ' - ~ - ..~ - ''~ ~'- `tea- m o ®- -o - . - ~ - - - .Richards, Watson & Gershon _ _- - - _ . _~ - ~ - - _~ - - - 355 South Grand Avenue 40th Floor - • ' • : ~ •- - - ' -~ _ - - "~ ~ ~ ` - - Los Angeles, CA 90071 ~- ' - - ~ - - • ' ' - - - - - -Phone (21-3)• 626-8484 - - - ' - - - _ - - - - Fax (213) 626-0078 ' - - - - - - www.rvv law.com - - - ~ ~ ~ ® e ~. .: - - - - - - - - - Gladys Medina - _ . '. •- - - - •- - - ~ _ - ~ - " - ~ _ - - Senior Project Manager ' -, - - - - - ' •_ _ ~ ~ - - _ - - ; Willdan Financial Services - - . - - - - _ - - _ •- - ~ - - ~ - 27368 Via Industria, Suite 11'0 - - - - - _ - - ~ ~ - - ; - ' Temec_ ula,- CA 92590 _ ~ -_ •_ - -• - - - - - - - Phone (951j 587-3500 - .- ; - _ - _ . -.. - _ - . • Fax (951) 587-3510 • ' -• - - - - - - ~ - - - . ' - gmedina@willdan.com - •- - - - - - - - - www.willdan.com - - - -- - -. - - - ® ~ ® •®~ - • - :- - - - • - ; _ - Beatrice Medina ' - - - •- • - ', • " ;- __ - - - ~ - ~ _ ~ " Senior Analyst_ . ' - - - - - - - • _ - '-_ - - ° Willdan Financial-Services• - - - - - _ - - - • - -- ~ - 27368 Via Industria,'Suite 110 • .. - - -- -- ~ -- ; - _- -_ ~. - . - • - . - - - -Temecula;, CA 92590 - - ~ ~ - • _' • - - -_ - -- - -, --- - - ~_ ~ Phone (951) 587-3500 - -- - • , ~ = - _ - - - . - - -- - ' - • - .- - - Fax (951') 587-3510- - •. - ~ - - - - - -- - _ • - ~ - bmedina@willdan.com - -- - - - - - - - ~ www.willdan.com - - ' ' ~ - - .' ®~~ - -. _• - -_ - " . - Fieldman, Rolapp•&~Associates - -- - '- ._- - - _- - - - - - ' - - ' - _ 19900 MacArthur B_Ivci:- - - - - • - - -, - - - " - - - - - ~ ~ ~ - - Irvine, CA 92612-2433 - • - ' - - _ - - - _. - Bank of New York Trust Company - , - ,- ~ - ' - ; ' - - - - - -Los Angeles; CA - _ - CFD 2002-01 Fiscal Year 2008/09 Annual Report Page 1 of 1 WILLDAN Fnancial Services City of Seal Beach Community Facilities District 2002-01 DfSTRICT OVERVIEVi/ FISCAL YEAR 2008/09 LEVY AMOUNTS ACCOUNT SUMMARY ~= e ~ ;~ _ e - .~ Bond Fund ~- - - 329295 - $419.45 June 30,- 2008 Reserve Fund - - 329297 $270,536.26 June 30, 2008 S ecial Tax Fund 0000 - $0.00 Ma 30, 2008 - C :,~ - ~~ + 9 b Balance, ~ - - $270,536.26 Re uirement - - - - -270,536.26 Above Below Re uirement $ 0.00 BOND CALL SUMMARY No bond calls were performed during Fiscal Year 2007/08. The outstanding bond amount as of September 2, 2008 is $3,890,000.00. DELINQUENCY SUMMARY For a more comprehensive summary, please see the Delinquency Management tab of this report. CFD 2002-01 Fiscal Year 2008/09 Annual Report Page 1 of 1 WILLDAN Financial Services City of Seal Beach Community Facilities District 2002-01 FRAMEWORK SUMMARY The following table shows formation proceeding information and applicable bond issue information for the District: e e e v e a e s _ Resolution of Intention to Establish - - ~ - ~ 5049 Date of Resolution of Intention to Establish Au ust 12, 2002 Resolution of Formation of the District ~ - 5063 Date of Resolution of Formation of the District S'e tembet• 23, 2002 Date of Bond Issue Dated Date - - - Au ust 4, 2005 Final Maturi - - ~ ~ Se tember 1, 2035 Authorized Debt Amount - $5,000,000.00 Amount of Bond Issue ~ $3,985,000.00 Interest Rate Ran e ~ 3-5.125% Bond Call Notice - - - - ~ 30 da s Redem tion Premium - 0% - 2.00% Foreclosure Covenants - ~ -. - ~ October 1 --5% Reserve Fund Re uirement - - $270,536.26 Couri Fund Number ~ ~ ~ .-- R1: SYNTHESIS OF PROCEEDINGS The Mello-Roos Community Facilities Act ("Act") of 1982 came about as a response to the lack of adequate financing for public capital facilities and services in the post-Proposition 13 era. State Legislators Mello and Roos sponsored this Bill, which was enacted into law by the California Legislature and is now Sections 53311 through 53363 of the California Government Code. The Act authorizes a local governmental agency, such as a school district or city, to form a Community Facilities District ("CFD") within a defined set of boundaries for the purposes of providing public facilities and services. A CFD is formed for financing purposes only, and is governed by the agency that formed it. The CFD was formed and established by the City of Seal Beach ("CityN) on September 23, 2002 following a public hearing by the City Council of the City as legislative body of the CFD, and the landowner election which authorized the CFD to incur bonded indebtedness and approved the levy of special taxes. CFD 2002-01 Fiscal Year 2008/09 Annual Report Page 1 of 4 "WILLDAN I Finanaal Services BOUNDARIES The Community Facilities The property is general) approximately a quarter Westminster Avenue. THE BONDS District is located in the northern portion of the City. y located in the west side of Seal Beach Boulevard, mile north of Bolsa Avenue and one mile south of The Bonds were issued in fully registered form in denominations of $5,000 each or any integral multiple of $5,000. The Bonds will bear interest at the annual rates set forth in the OfFcial Statement and payable semiannually on each March 1 and September 1, commencing March 1, 2006. All of the Bonds are subject to redemption prior to their stated maturities, on any Interest Payment Date, from the proceeds of Special Tax Prepayments (less the Current Tax Component), as a whole or in part, at a redemption price (expressed as a percentage of the principal amount of the Bonds to be redeemed) as set forth below, together with accrued interest thereon to the date fixed for redemption: Redemption Date Redemption Price March 1, 2006 through March 1, 2015 102% September 1, 2015 and any Interest Payment Date thereafter 100°~ The Bonds are subject to optional redemption, from sources of funds other than Special Tax Prepayments, prior to their stated maturity on any Interest Payment Date on or after March 1, 2006, as a whole or in part, at a redemption price (expressed as a percentage of the principal amount of the Bonds to be redeemed), as set forth below, together with accrued interest thereon to the date fixed for redemption: Redemption Date Redemption Price March 1, 2006 through March 1, 2015 102% September 1, 2015 and any Interest Payment Date thereafter 100% The Term Bond maturing on September 1, 2025 is subject to mandatory sinking fund payment redemption in part on September 1, 2023 and on each September 1 thereafter to maturity, by lot, at a redemption price equal to the principal amount thereof to be redeemed, together with accrued interest to the date fixed for redemption, without premium, from Sinking Fund Payments as follows: Se tember 1, 2023 ~ $140, 000 Se tember 1, 2024 $150,000 Se tember 1, 2025 maturi $155,000 CFD 2002-01 Fiscal Year 2008/09 Annual Report Page 2 of 4 WILLDAN Finanaal Services The Term Bond maturing on September 1, 2030 is subject to mandatory sinking fund payment redemption in part on September 1, 2026, and on each September 1 thereafter to maturity, by lot, at a redemption price equal to the principal amount thereof to be redeemed together with accrued interest to the date fixed for redemption without premium, from Sinking Fund Payments as following: The Term Bond maturing on September 1, 2035 is subject to mandatory sinking fund payment redemption in part on September 1, 2031, and on each September 1 thereafter to maturity, by lot, at a redemption price equal to the principal amount thereof to be redeemed together with accrued interest to the date fixed for redemption without premium, from Sinking Fund Payments as following: COVENANT FOR JUDICIAL FORECLOSURE Under the Act, if any delinquency occurs in the payment of the Special Tax, the City may order the institution of a Superior Court action to foreclose the lien therefor within specified time limits. In such an action, the real property subject to the unpaid amount may be sold at judicial foreclosure sale. Such judicial foreclosure action is not mandatory. However, the City has agreed in the Fiscal Agent Agreement that it: (i) will commence judicial foreclosure proceedings against parcels with delinquent Special Taxes in excess of $10,000 by the October 1 following the close of each Fiscal Year in which such Special Taxes were due; and (ii) will commence judicial foreclosure proceedings against all parcels with delinquent Special Taxes by the October 1 following the close of each Fiscal Year in which it receives Special Taxes in an amount which is less than 95°~ of the total Special Tax levied and the CFD 2002-01 Fiscal Year 2008!09 Annual Report Page 3 of 4 Wl LLDAN I Financial Services amount on deposit in the Reserve Account is at less than the Reserve Requirement, and (iii) will diligently pursue such foreclosure proceedings until the delinquent Special Taxes are paid; provided, however, that if the City is participating in the Teeter Plan, and the Special Taxes are covered under the Teeter Plan, the City will be under no obligation to foreclose on parcels as provided in the Fiscal Agent Agreement. FINANCED FACILITIES Proceeds of the Bonds will be used to finance the construction and acquisition of certain public street improvements, water and sanitary sewer improvements, dry utility improvements, park and landscaping improvements, and sewer, water, park, storm drain, and transportation improvements. CFD 2002-01 Fiscal Year 2008/09 Annual Report Page 4 of 4 W 1 LLDAN Financial Services City of Seal Beach Community Facilities District 2002-01 (Heron Pointe) DATE AND METHOD OF A-PPORTION~AENT FOR SPECIAL TAX The attached is a copy of the Rate and Method of Apportionment of Special Tax (Appendix B) taken from the Official Statement. CFD 2002-1 Fiscal Year 2008/09 Annual Report Page 1 of 1 AMENDED AND RESTATED RATE AND METHOD OF APPORTIONMENT FOR CITY OF SEAL BEACH COMMUNITY FACILITIES DISTRICT N0.2002-OI (HERON POINTE) A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels in the City of Seai Beach Community Facilities District No. 2002-OZ (Heron Pointe) ("CFD No. 2002-01") and collected each Fiscal Year commencing in Fiscal Year 2002-03, in an amount determined by the City Council of the City of Seal Beach, through the application of the Rate and Method of Apportionment as described below. All of the real property in CFD No.2002-01, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. A. The terms hereinafter set forth have the following meanings: "Acre or Acreage" means the land area of an Assessor's Pazcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land azea shown on the applicable final map, parcel map, condominium plan, or other recorded County parcel map. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2002-01: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the County or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No.2002-01 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2002-01 or any designee thereof of complying with City, CFD No. 2002-0 Z or obligated persons disclosure requirements associated with applicable federal and state securities laws and of the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2002-01 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from any escrow account; and the City's annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2002-O1 for any other administrative purposes of CFD No. 2002-O1, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. City ojSeal Beach November 12, 2003 CFD No. 2002-Ot (Heron Pointe) Page 1 "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned Assessor's parcel number. "Assessor's Parcel Map" means an official map of the County Assessor of the County designating parcels by Assessor's parcel number. "Assigned Special Tax" means the Special Tax for each Land Use Class of Developed Property, as determined in accordance with Section C below. "Backup Special Tax" means the Special Tax applicable to each Assessor's Parcel of Developed Property, as determined in accordance with Section C below. "Bonds" means any bonds or other debt (as defined in Section 53317(d) of the Act), whether in one or more series, issued by the City on behalf of CFD No. 2002-01 under the Act. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD No. 2002-O1" means the City of Seal Beach Community Facilities District No. 2002- 01 (Heron Pointe). "City" means the City of Seal Beach. "Council" means the City Council of the City. "County" means the County of Orange. "Developed Property" means for each Fiscal Year, all Taxable Property, exclusive of Taxable Public Property and Taxable Property Owner Association Property, for which a building permit for new construction was issued after January 1, 2001 and prior to January 1 of the prior Fiscal Year. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Indenture" means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time. "Land Use Class" means any of the classes listed in Table 1 below. "Maximum Special Tax" means the Maximum Special Tax, determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor's Parcel. "Non-Residential Property" means all Assessor's Pazcels of Developed Properly for which a building permit was issued for anon-residential use. City of Seal Beach November 11,1003 CFD Na 1001-O1 (Heron Pointe) page 2 "Outstanding Bonds" means all Bonds which are deemed to be outstanding under the Indenture. "Proportionately" means, for Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is equal for all Assessor's Parcels of Developed Properly. For Undeveloped Property, "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor's Parcels of Undeveloped Property. For Taxable Public Property and Taxable Property Owner Association Property, "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor's Parcels of Taxable Public Property or Taxable Property Owner Association Property, as applicable. "Property Owner Association Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 2002-01 that was owned by a property owner association, including any master or sub-association, as of January 1 of the prior Fiscal Year. "Public Property" means, for each Fiscal Year, any property within CFD No.2002-01 that is owned by, irrevocably offered for dedication to, or dedicated to the federal government, the State, the County, the City or any other public agency as of June 30 of the prior Fiscal Year; provided however that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with its use. To ensure that property is classified as Public Property in the first Fiscal Year after it is acquired by, irrevocably offered for dedication to, or dedicated to a public agency, the property owner shall notify the CFD Administrator in writing of such acquisition, offer, or dedication not later than June 30 of the Fiscal Year in which the acquisition, offer, or dedication occurred. "Residential Floor Area" means all of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Residential Floor Area shall be made by reference to the building permit(s) issued for such Assessor's Parcel. "Residential Property" means all Assessor's Parcels of Developed Properly for which a building permit has been issued for purposes of constructing one or more residential dwelling units. "special Tax" means the special tax to be levied in each Fiscal Year on each Assessor's Pazcel of Taxable Property to fund the Special Tax Requirement. "Special Tax Requirement" means that amount required in any Fiscal Year for CFD No. 2002-01 to: (i) pay debt service on all Outstanding Bonds; (ii) pay periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds; (v) pay directly for acquisition or construction of CFD No. 2002-O1 facilities eligible under the Act; (vi) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the City of Seal Bearh November 12, 2003 CFD No. 2002-O1 (Heron Pointe) Page 3 previous Fiscal Year; less (vii) a credit for funds available to reduce the annual Special Tax levy, as determined by the CFD Administrator pursuant to the Indenture. "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No. 2002-01 which are not exempt from the Special Tax pursuant to law or Section E below. "Taxable Property Owner Association Property" means all Assessor's Parcels of Property Owner Association Property that are not exempt pursuant to Section E below. "Taxable Public Property" means all Assessor's Parcels of Public Property that are not exempt pursuant to Section E below. "Trustee" means the trustee or fiscal agent under the Indenture. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Taxable Public Properly or Taxable Property Owner Association Property. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, all Taxable Property within CFD No. 2002-O1 shall be classified as Developed Property, Taxable Public Property, Taxable Property Owner Association Property, or Undeveloped Property, and shall be subject to Special Taxes in accordance with the rate and method of apportionment determined pursuant to Sections C and D below. C. MAXIMUM SPECIAL TAX 1. Developed Property a. Maximum Special Tax The Maximum Special Tax for each Assessor's Parcel classified as Developed Property shall be the greater of (i) the amount derived by application of the Assigned Speciat Tax or (ii) the amount derived by application of the Backup Special Tax. b. Assigned Special Tax The Fiscal Year 2002-03 Assigned Special Tax for each Land Use Class is shown below in Table 1. City of Sea! Beach November 11, 2003 CFD No. 2002-01 (Heron Pointe) page 4 TABLE 1 Fiscal Year 2002-03 Assigned Special Taxes for Developed Property in Community Facilities District No. 2002-01 (Heron Pointe) Land Use Class Description Residential Floor Area Assigned Special Tax 1 Residential Property >_ 4,000 s.f. $5,350 per unit 2 Residential Property 3,750 - 3,999 s.f. $5,078 per unit 3 Residential Property 3, 500 - 3,749 s.f. $4,900 per unit 4 Residential Property < 3,500 s.f. $4,570 per unit 5 Non-Residential Property NA $41,977 per Acre c. Backup Special Tax The Fiscal Year 2002-03 Backup Special Tax for an Assessor's Parcel of Developed Property shall equal $41,977 per Acre. d. Increase in the Assi ng ed Special Tax and Backup Special Tax On each July 1, commencing on July 1, 2003 and through and including July 1, 2012, the Assigned Special Tax and the Backup Special Tax shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year. There will be no increase in the Assigned Tax or Backup Special Tax subsequent to July 1, 2012. 2. Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association Property a. Maximum Special Tax The Fiscal Year 2002-03 Maximum Special Tax for Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association Property shall be $47,043 per Acre. City of Sea! Beach November 12, 2003 CFD ~Ya 2002-01(Herun Pointe) Page S Increase in the Maximum Special Tax On each July 1, commencing on July 1, 2003 and through and including July 1, 2012, the Maximum Special Tax for Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association Property shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year. There will be no increase in the Maximum Special Tax for Undeveloped Froperty, Taxable Public Property, and Taxable Property Owner Association Property subsequent to July 1, 2012. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2002-03 and for each following Fiscal Year, the Council shall determine the Special Tax Requirement and shall levy the Special Tax until the amount of Special Taxes equal the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows: First: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax; Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property at up to 100% of the Maximum Special Tax for Undeveloped Property; Third: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, then the levy of the Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is determined through the application of the Backup Special Tax shall be increased in equal percentages from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor's Parcel; Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax shall be levied Proportionately on each Assessor's Parcel of Taxable Property Owner Association Property at up to the Maximum Special Tax for Taxable Property Owner Association Property; and Fifth: If additional monies are needed to satisfy the Special Tax Requirement after the first four steps have been completed, then the Special Tax shall be levied Proportionately oneach Assessor's Parcel of Taxable Public Property at up to the Maximum Special Tax for Taxable Public Property. Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent as a consequence of delinquency or default by the owner of any other Assessor's Parcel within the CFD. ---- - City of Seal Beach November ll, 2003 CFD No. 2002-O1 (Hemn Pointe} Page 6 E. EXEMPTIONS No Special Tax shall be levied on up to 8.07 Acres of Property Owner Association Property. Tax-exempt status will be irrevocably assigned by the CFD Administrator in the chronological order in which property becomes Property Owner Association Property. However, should an Assessor's Parcel no longer be classified as Property Owner Association Property, its tax-exempt status will be revoked. No Public Property shall be exempt from Special Tax, except as required by law. Public Property or Property Owner Association Property that is not exempt from Special Taxes under this section shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the fourth or fifth step in Section D above, at up to 100% of the applicable Maximum Special Tax for Taxable Public Property or Taxable Property Owner Association Property. F. APPEALS AND INTERPRETATIONS Any taxpayer may file a written appeal of the Special Tax on his/her property with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the calculation of the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall eliminate or reduce the Special Tax on the appellant's property and/or provide a refund to the appellant. If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has 30 days in which to appeal to the Council by filing a written notice of appeal with the City clerk, provided that the appellant is current in his/her payments of Special Taxes. The second appeal must specify the reasons for its disagreement with the CFD Administrator's determination. G. MANNER OF COLLECTION The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 2002-01 may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor's Parcels as permitted by the Act. H. PREPAYMENT OF SPECIAL TAX The following definition applies to this Section H: City of Seal Bearh November Il, 2003 CFD No. 2002-01(Heron Pointe) Page 7 "CFD Public Facilities Cost" means either $3.015 million in 2002 dollars, which shall increase by the Construction Inflation Index on July 1, 2003, and on each July 1 thereafter, or such lower number as (i) shall be determined by the CFD Administrator as sufficient to provide the public facilities to be provided by CFD No. 2002-01 under the authorized bonding program for CFD No. 2002-01, or (ii) shall be determined by the Council concurrently with a covenant that it will not issue any more Bonds to be supported by Special Taxes levied under this Rate and Method of Apportionment as described in Section D. "Construction Fund" means an account specifically identified in the Indenture to hold funds which are currently available for expenditure to acquire or construct public facilities eligible under the Act. "Construction Inflation Index" means the annual percentage change in the En ineering News-Record Building Cost Index for the City of Los Angeles, measured as of the calendar year which ends in the previous Fiscal Yeaz. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the CFD Administrator that is reasonably comparable to the En ineeringNetys-Record Building Cost Index for the City of Los Angeles. "Future Facilities Costs" means the CFD Public Facilities Cost minus (i) public facility costs previously paid from the Construction Fund, (ii) moneys currently on deposit in the Construction Fund, and (iii) moneys currently on deposit in an escrow fund that are expected to be available to finance facilities costs. "Outstanding Bonds" means all Previously Issued Bonds which are deemed to be outstanding under the Indenture after the first interest and/or principal payment date following the current Fiscal Year. "Previously Issued Bonds" means all Bonds that have been issued by CFD No. 2002-01 prior to the date of prepayment. 1. Prepayment in Full The obligation of an Assessor's Parcel to pay the Special Tax may be prepaid and permanently satisfied as described herein; provided that a prepayment may be made only for Assessor's Parcels of Developed Property or Undeveloped Property for which a building permit has been issued, and only if there are no delinquent Special Taxes with respect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Special Tax obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount of such Assessor's Parcel. The CFD Administrator may charge a reasonable fee for providing this service. Prepayment must be made not less than 45 days prior to the next occurring date that notice of redemption of Bonds from the proceeds of such prepayment may be given to the Trustee pursuant to the Indenture. City of Seal Beach November 12,1003 CFD No. 2002-0I (Heron Pointe) Page 8 The Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below): Bond Redemption Amount plus plus plus plus less less Total: equals Redemption Premium Future Facilities Amount Defeasance Amount Administrative Fees and Expenses Reserve Fund Credit Capitalized Interest Credit Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount (defined below) shall be calculated as follows: Para~raah No.• 1. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel. 2. For Assessor's Parcels of Developed Property, compute the Assigned Special Tax and Backup Special Tax applicable for the Assessor's Parcel to be prepaid. For Assessor's Parcels of Undeveloped Property (for which a building permit has been issued) to be prepaid, compute the Assigned Special Tax and Backup Special Tax for that Assessor's Parcel as though it was already designated as Developed Property, based upon the building permit which has already been issued for that Assessor's Parcel. 3. (a) Divide the Assigned Special Tax computed pursuant to paragraph 2 by the total estimated Assigned Special Taxes for the entire CFD No. 2002-01 based on the Developed Property Special Taxes which could be chazged in the current Fiscal Year on all expected development through buildout of CFD No. 2002-01, excluding any Assessor's Parcels which have been prepaid, and (b) Divide the Backup Special Tax computed pursuant to paragraph 2 by the estimated Backup Special Taxes at buildout of CFD No. 2002-01 using the Backup Special Tax amount for the current Fiscal Year, excluding any Assessor's Parcels which have been prepaid. 4. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the "Bond Redemption Amount"). 5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the "Redemption Premium"). City of Seal Beach November 12, 2003 CFD Na 2002-O1(Heron Pointe) Page 9 6. Compute the current Future Facilities Costs 7. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the amount detennined pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be prepaid (the "Future Facilities Amount"). 8. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds. 9. Determine the Special Taxes levied on the Assessor's Parcel in the current Fiscal Year which have not yet been paid. 10. Compute the minimum amount the CFD Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount (as defined below) less the Future Facilities Amount and the Administrative Fees and Expenses (as defined below) from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment. 11. Add the amounts computed pursuant to pazagraphs 8 and 9 and subtract the amount computed pursuant to paragraph 10 (the "Defeasance Amount"). 12. Verify the administrative fees and expenses ofCFD No.2002-01, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the "Administrative Fees and Expenses"). 13. If reserve funds for the Outstanding Bonds, if any, are at or above 100% of the reserve requirement (as defined in the Indenture) on the prepayment date, 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'. No Reserve Fund Credit shall be granted if reserve funds are below 100% of the reserve requirement. 14. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the "Capitalized Interest Credit"). 15. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 7, 11 and 12, less the amounts computed pursuant to paragraphs 13 and 14 (the "Prepayment Amount"). City of Seal Beach November 12, 2003 CFD Na 1 D02-01 (Heron Pointe) Page l0 16. From the Prepayment Amount, the amounts computed pursuant to paragraphs 4, 5, 11, 13 and 14 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 pazagraph 7 shall be deposited into the construction fund. The amount computed pursuant to paragraph 12 shall be retained by CFD No. 2002-01. The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of bonds or to make debt service payments. As a result of the payment of the current Fiscal Year's Special Tax levy as determined under paragraph 9 (above), the CFD Administrator shall remove the current Fiscal Year's Special Tax levy for such Assessor's Parcel from the County tax rolls. With respect to any Assessor's Pazcel that is prepaid, the Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Special Taxes and the release of the Special Tax lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay the Special Tax shall cease. Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Assigned Special Taxes that maybe levied on Taxable Property within CFD No. 2002-01 both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds. 2. Prepayment in Part The Special Tax on an Assessor's Parcel of Developed Property or an Assessor's Parcel of Undeveloped Property for which a building permit has been issued may be partially prepaid. The amount of the prepayment shall be calculated as in Section H.1; except that a partial prepayment shall be calculated according to the following formula: PP = PE x F. These terms have the following meaning: PP = the partial prepayment PE = the Prepayment Amount calculated according to Section H.1 F = the percentage by which the owner of the Assessor's Parcel(s) is partially prepaying the Special Tax. The owner of any Assessor's Parcel who desires such prepayment shall notify the CFD Administrator of such owner's intent to partially prepay the Special Tax and the percentage by which the Special Tax shall be prepaid. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax for an Assessor's Parcel within thirty (30) days of the request and City of Seal Beach November 12, 2003 CFD No. 2002-0! (Heron Pointe) Page 11 may charge a reasonable fee for providing this service. With respect to any Assessor's Parcel that is partially prepaid, the City shall (i) distribute the funds remitted to it according to Section H.1, and (ii) indicate in the records of CFD No. 2002-01 that there has been a partial prepayment of the Special Tax and that a portion of the Special Tax with respect to such Assessor's Parcel, equal to the outstanding percentage (1.00 - F) of the remaining Maximum Special Tax, shall continue to be levied on such Assessor's Parcel pursuant to Section D. I. TERM OF SPECIAL TAX The Special Tax shall be levied for the period necessary to fully satisfy the Special Tax Requirement, but in no event shall it be levied after Fiscal Year 2042-43. K:~Clients2\Seal Beachlmello\cfd2002-Irma\sbRMAI l.doc i o eal Beach h' l Noveslber 12, 2003 CFD No. 2002-01(Hervn Pointe) page 12 EXHIBIT B CITY OF SEAL BEACH COMMUNITY FACILITIES DISTRICT N0.2002-01 (HERON POINTE) ASSIGNED SPECIAL TAX RATES FOR DEVELOPED PROPERTY Land Use Class Description FY 2042-03 Assigned Special Taa [Ij 1 Residential Property (> 4,000 SF) $5,350 per unit 2 Residential Property (3,750 to 3,999 SF) $5,078 per unit 3 Residential Property (3,500 to 3,749 SF) $4,900 per unit 4 Residential Property (< 3,500 SF) $4,570 per unit 5 Non-Residential Property $41,977 per Acre [1] On each July 1, commencing July 1, 2003 and ending on July 1, 2012, the Assigned Special Tax for Developed Property shall be increased by two percent (2.00%) of the amount in effect in the previous Fiscal Year. EXHIBIT C CITY OF SEAL BEACH COMMUNITY FACILITIES DISTRICT N0.2002-01 (HERON POINTE) MAXIMUM SPECIAL TAX FOR UNDEVELOPED PROPERTY, TAXABLE PUBLIC PROPERTY, AND TAXABLE PROPERTY OWNER ASSOCIATION PROPERTY Description ~ Year 2002-03 Maximum Special Tax (1~ Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association Property $47,043 per Acre [ 1 ] On each July 1, commencing July 1, 2003 and ending on July I , 2012, the Maximum Special Tax for Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association Property shall be increased by two percent (2.00%) of the amount in effect in the previous Fiscal Year. WILLDAN I Financial Services City of Seal Beach Community Facilities District 2002-01 FUND i4000UNT SUMMARY FUND BALANCES AND INVESTMENT SUMMARY The following table shows fund balance information for the District: • ~ 9 ~ - ~i.t a® e o ~ e- '•w e Bond Fund - ~ 329295 - _ - - $419.45 June 30, 2008 Reserve Fund ~ - - 329297 $270,536.26 June 30, 2008 S ecial Tax Fund 0000 - $0.00 Ma 30, 2008 At the time of bond issue, the following funds were created and are maintained by the Fiscal Agent and the City. Each Fund is described along with its respective sub- account, if any, below. BOND FUND The Bond Fund is established and maintained by the Fiscal Agent to the credit of which deposits will be made as required by the Fiscal Agent Agreement. Moneys in the Bond Fund will be held by the Fiscal Agent for the benefit of the City and the Owners of the Bonds, and will be disbursed for the payment of the principal of, and interest and any premium on, the Bonds. RESERVE FUND The Reserve Fund is established and maintained by the Fiscal Agent to the credit of which a deposit shall be made from a portion o the proceeds of the Bonds equal to the initial Reserve Requirement. The Fiscal Agent Agreement defines the Reserve Requirement, as of any date of calculation, as the least of (a) Maximum Annual Debt Service on the Outstanding Bonds, (b) 125% of average Annual Debt Service on the Outstanding Bonds and (c) 10% of the original principal amount of the Bonds. SPECIAL TAX FUND The Special Tax Fund is maintained by the Director of Administrative Services/Treasurer, into which the Director of Administrative Services/Treasurer will deposit, immediately upon receipt, all Special Tax Revenues received by the City. Moneys in the Special Tax Fund will be held for the benefit of the City and the Owners of the Bonds. CFD 2002-01 Fiscal Year 2008/09 Annual Report Page 1 of 1 City of Seal Beach Community Facilities District 2002-01 ORIGINAL DEBT SERVICE SCHEDULE Dated Date: 8/4/2005 First Coupon: 3/1/2006 First Maturity: 9/1/2006 3/1/2006 $110,320.22 $110,320.22 9/1/2006 0.00000% 0.00 95,930.63 95,930.63 206,250 85 3/1/2007 95,930.63 95,930.63 9/1/2007 3.00000% 45,000.00 95,930.63 140,930.63 236,861.26 3/1/2008 95,255.63 95,255.63 9/1/2008 3.30000% 50,000.00 95,255.63 145,255.63 240,511.26 3/1/2009 94,430.63 94,430.63 9/1/2009 3.65000% 60,000.00 94,430.63 154,430.63 248,861.26 3/1/2010 93,335.63 93,335.63 9/1/2010 3.85000% 65,000.00 93,335.63 158,335.63 251,671.26 3/1/2011 92,084.38 92,084.38 9/1/2011 4.00000% 75,000.00 92,084.38 167,084.38 259,168.76 3/1/2012 90,584.38 90,584.38 9/1/2012 4.15000% 80,000.00 90,584.38 170,584.38 261,168.76 3/1/2013 88,924.38 88,924.38 9/1/2013 4.25000% 90,000.00 88,924.38 178,924.38 267,848.76 3/1/2014 87,011.88 87,011.88 9/1/2014 4.25000% 95,000.00 87,011.88 182,011.88 269,023.76 3/1/2015 84,993.13 84,993.13 9/1/2015 4.45000% 100,000.00 84,993.13 184,993.13 269,986.26 3/1/2016 82,768.13 82,768.13 9/1/2016 4.45000% 105,000.00 82,768.13 187,768.13 270,536.26 3/1/2017 80,431.88 80,431.88 9/1/2017 4.55000% 105,000.00 80,431.88 185,431.88 265,863.76 3/1/2018 78,043.13 78,043.13 9/1/2018 4.65000% 110,000.00 78,043.13 188,043.13 266,086.26 3/1/2019 75,485.63 75,485.63 9/1/2019 4.70000% 115,000.00 75,485.63 190,485.63 265,971.26 3/1/2020 72,783.13 72,783.13 9/1/2020 4.85000% 120,000.00 72,783.13 192,783.13 265,566.26 3/1/2021 69,873.13 69,873.13 9/1/2021 4.90000% 130,000.00 69,873.13 199,873.13 269,746.26 3/1/2022 66,688.13 66,688.13 9/1/2022 4.95000% 135,000.00 66,688.13 201,688.13 268,376.26 3/1/2023 63,346.88 63,346.88 9/1/2023 5.00000% 140,000.00 63,346.88 203,346.88 266,693.76 3/1/2024 59,846.88 59,846.88 9/1/2024 5.00000% 150,000.00 59,846.88 209,846.88 269,693.76 3/1/2025 56,096.88 56,096.88 9/1/2025 5.00000% 155,000.00 56,096.88 211,096.88 267,193.76 3/1/2026 52,221.88 52,221.88 9/1/2026 5.00000% 165,000.00 52,221.88 217,221.88 269,443.76 3/1/2027 48,096.88 48,096.88 9/1/2027 5.00000% 170,000.00 48,096.88 218,096.88 266,193.76 3/1/2028 43,846.88 43,846.88 9/1/2028 5.00000% 180,000.00 43,846.88 223,846.88 267,693.76 3/1/2029 39,346.88 39,346.88 9/1/2029 5.00000% 190,000.00 39,346.88 229,346.88 268,693.76 3/1/2030 34,596.88 34,596.88 9/1/2030 5.00000% 200,000.00 34,596.88 234,596.88 269,193.76 3/1/2031 29,596.88 29,596.88 9/1/2031 5.12500% 210,000.00 29,596.88 239,596.88 269,193.76 3/1/2032 24,215.63 24,215.63 9/1/2032 5.12500% 220,000.00 24,215.63 244,215.63 268,431.26 3/1/2033 18,578.13 18,578.13 9/1/2033 5.12500% 230,000.00 18,578.13 248,578.13 267,156.26 Willdan Finanaal Services Fiscal Year 2008/09 Mnual Report Page 1 of 2 City of Seal Beach Community Facilities District 2002-01 ORIGINAL DEBT SERVICE SCHEDULE Dated Date: 8/4/2005 First Coupon: 3/1/2006 First Maturity: 9/1/2006 3/1/2034 12,684.38 12,684.38 9/1/2034 5.12500% 240,000 00 12,684.38 252,684.38 265,368.76 3/1/2035 6,534.38 6,534.38 9/1/2035 5.12500% 255,000.00 6,534.38 261,534.38 268,068.76 Outstandin Princi al $3,890,000.00 Matured Princi al 95,000.00 Called Princi al 0.00 Total Bond Issue $3,985,000.00 Willdan Financial Services Fispl Year 2008/09 Mnual Report Page 2 of 2 ~.~ ~~~ ~•~~ g s ~ ~ ti y 2 ty ~ ~~, ~~`~ ~ ~ ~ ~ ~~ ~ ~ moo ~ ~ ~ •~ U ~ _~ ~. ~ I I O ~:~ $'~ ~• ZR~G~,~ ~,~ 3'a (yam ~ H1b4N ,,U.., z s 0 ~~ t3 ~ ~h~•C~ ~ ~~ o orb ~ ~ $ 1 ti 1 O O. 0 ~1 ~ ~ ~ ~~~~ yJ ~~ ~ ~ ~~ yob ~ Ow wok , ~~ o~o W~~o~ o~v~~ ~~ o~ ~~, ~~ ~ ~~ ~o H ~ I ~~ ~~ ~~~ Va ~ ~~ ~ ~m ~ ~~~ ~ ~ ~~b ~~$ ~ o~ ~ ~a~`s~ y ~ ~y ~~ q ~~ ~~~~~ ~+ ~ ~ .~ o ~~ .. o ~~ ~~ ~~~ ~ ~~.~~~ ~ ~ ~~ ~~~ I-l WILLDAN Financial Services City of Seal Beach Community Facilities District 2002-01 DELINQUENCY MANAGEMENT SUMMARY Willdan Financial Services has performed the following Delinquency Monitoring Actions since July 1, 2007: NOTES: REMINDER LETTER Reminds property owner that the special assessment has not been paid, and should be redeemed with the County. DEMAND LETTER Allows property owner to redeem the delinquent amount with the County. However, this letter informs the property owner that the Agency will be stripping the delinquent amount from the County Secured Property Tax Roll, and will pursue Foreclosure actions, if the amount is not paid. HANDBILL INVOICE Reminds property owner that the special assessment has not been paid, and should be redeemed with the Agency. PAYMENT PLAN Repayment schedule negotiated by Willdan Financial Services on behalf of the Agency to cure the delinquency and avoid initiation of judicial foreclosure on installments removed from the Tax Roll. SB 1471 Represents a document recorded at the County Recorder's Office which provides constructive notice to interested parties that a delinquency may exist in a specific P~gency's District for specific parcel(s), in specific tax year(s), that the Agency CFD 2002-01 Fiscal Year 2008/09 Annual Report Page 1 of 2 W1 LLDAN _ Financial Services intends to remove from the Tax Roll for collection by the Agency, or by one of its agents; either by direct billing, or through the judicial foreclosure process. STRIP REQUEST The delinquent amount requested to be removed from the County Secured Property Tax Roll. STRIP CONFIRMATION The delinquent amount is confirmed removed from the County Secured Property Tax Roll. FORECLOSURE COMPLETE Foreclosure satisfied and subsequent foreclosure fee invoiced to agency. FORECLOSURE LETTER Informs the property owner that if the delinquent amount is not paid directly to the Agency within 21 days of receipt of the letter, Foreclosure Actions will be pursued. FORECLOSURE REQUEST All remaining delinquent parcels are forwarded to a Foreclosure Attorney. Please note that Delinquency Actions are pertonned on an installment basis and not on a per parcel basis. CFD 2002-01 Fiscal Year 2008/09 Annual Report Page 2 of 2 DELINQUENCY SUMMARY BY DISTRICT City of Seal Beach Under the Act, if any delinquency occurs in the payment of the Special Tax, the City may order the institution of a Superior Court action to foreclose the lien therefor within specified time limits. In such an action, the real property subject to the unpaid amount may be sold at judicial foreclosure sale. Such judicial foreclosure action is not mandatory. However, the City has agreed in the Fiscal Agent Agreement that it: (i) will commence judicial foreclosure proceedings against parcels with delinquent Special Taxes in excess of $10,000 by the October 1 following the close of each Fiscal Year in which such Special Taxes were due; and (ii) will commence judicial foreclosure proceedings against all parcels with delinquent Special Taxes by the October 1 following the close of each Fiscal Year in which it receives Special Taxes in an amount which is less than 95% of the total Special Tax levied and the amount on deposit in the Reserve Account is at less than the Reserve Requirement, and (iii) will diligently pursue such foreclosure proceedings until the delinquent Special Taxes are paid. WILLDAN I Printed on: November 11, 2008 at 12:37 pm Page 1 of 1 Fu~anaal SErwces Calculations performed on 1'V10l2008 11:09:OOPM WI LLDAN ,,,. Fnancial Services City of Seal Beach Community Facilities District 2002-01 SPECIAL TAX RATES SPECIAL TAX SPREAD MAXIMUM AND APPLIED SPECIAL TAX RATES The following table summarizes the percent of the Applied Special Tax Rate to the Maximum Special Tax Rate. CFD 2002-01 Fiscal Year 2008/09 Annual Report Page 1 of 2 The following table summarizes the number of parcels in each land use category according to its square footage as well as the applied special tax rate for each category. •±; J``" Wl LLDAN I Financial Services APPLIED SPECIAL TAX PROGRESSION The following table summarizes the percent change of Fiscal Year 2008/09 Applied Special Tax Rate as compared to Fiscal Year 2007/08 Applied Special Tax Rate. A0: 0• it /: r • .a- - 0 so -e o- oo -o o- .- o ~A ra s: 1-Residential - - $4,409.06 - - $4,349.48 _ • _-=1.37% 2-Residential - $4,184.90 - - = $4-;128.34 _ 1.37°r6 - 3-Residential - - - $4,038.20 $3,983.63 - 1•.37°r6 - 4-Residential - ~ N/A - N/A - N/A 5-Non-Residential N/A - N/A - -N/A 6-Undevelo ed N/A N/A N/A CFD 2002-01 Fiscal Year 2008/09 Annual Report Page 2 of 2 2008109 Budg®t Worksheet Community Facilities District 2002-01 Fund Number R1 Principal $60,000.00 Interest 188,861.26 TOTAL $248,881.28 •e • • Agency Administration $11,000.00 Finance Manager 0.00 Accounting Stafr 0.00 Engineering Staff 0.00 Ciiy Manager Staff 0.00 Other Staff 0.00 Agency Auditor Fees 0.00 Attorney Fees 1,000.00 Office Expenses, Paid by Agency 0.00 Other Expenses, Paid by Agency 0.00 Total Agency Staff and F~rpenses $12,000.00 County Auditor and Assessor Fees 809.26 RegistrarlTransfer/Paying went Fees 2,400.00 ConsuRing Services 5,500.00 Consulting Expenses 0.00 Delinquency Management Allowance 183.78 TOTAL $20,893.04 Total Principal, Interest and Admin Costs $269,754.30 •~ ~ • Reserve Fund Credit $0.00 Special Tax Fund Credit 0.00 ReplenishmenU(Credit) 0.00 Capitalized Interest Credit 0.00 Miscellaneous/Adjustment Credit 0.00 TOTAL $0.00 e Total Charge $269,754.30 Applied Charge $269,753.88 Difference (due to rounding) $0.64 Handbllled Parcels: 0 Handbllled Charge: ~ $0.00 Rejected Parcels: 0 Rejected Charge: $0.00 Re-applied Parcels: 0 Re-applied Charge: ;0.00 D'rfference (due to parcel changes): $0.00 ~~~ • •- • Number of Active Parcels 64 Number of Parcels Levied 64 Admin Costs as a percent of Annual Levy 7.75% Clty of Seal Beach Community Facilities District 2002-01 Charge Detail Report (Sorted by Assessor's Parcel Number) 189-201-02 ANORGA, ALFONSO JR 3 ANORGA, YVETTE 958 HERON CIR 864,998 00 780,582.00 1,825,500.00 4,098.20 189-201-03 HERNANDEZ, ABILIO AGAPITO 8 TR 982 HERON CIR 885,852 00 758,848 00 1,742,50000 4,408.08 189-201-04 LENNING, GERALD L TR 966 HERON GR 1,002,885 00 882,683.00 1,885,588.00 4,038.20 199-201-05 HALEY, MICHAEL 970 HERON CIR 1,040,574.00 729,486.00 1,770,080.00 4,184.90 189-201-08 LITTLE, KENNETH L TR 6 RESIDENCE TRUST #2 974 HERON GR 905,17200 805,828 00 1,711,000.00 4,409.08 199-201-07 TAN, SUNNY K 8 TAN, BARBARA 878 HERON CIR 928,800 00 786,762.00 1,685,302.00 4,184.80 199.201-08 MADRID, ALFONSO P & MADRID, BLANCA E 983 HERON CIR 948,852.00 809,023 00 1,748,875 00 4,409.08 199-201A9 SHOWALTER, MILDRED N 979 HERON CIR 1,005,483.00 728,395.00 1,731,85800 4,03820 199.201-12 TRAN,TIMOTHY 987 HERON CIR 1,077,181.00 750,81900 1,B28,D00.00 4,40906 198-201-13 DO, HUNG VU 8 NGUYEN, YEN NGOC 963 HERON CIR 812,834 00 719,037.00 1,525,871.00 4,038 20 199-201-14 STEPHENS, WILLIAM H 8 STEPHENS, JILL D 959 HERON CIR 923,514.00 725,888 00 1,849,500.00 4,184 90 19201-15 MENDEZ, DALE M 965 HERON CIR 823,980 00 881,520.00 1,506,600.00 4,038.20 199-201-18 WERNER, DARRYL 951 HERON CIR 1,070,274 00 770,943 00 1,841,217.00 4,409.08 198-201-17 ALMASY, MICHAEL J & ALMASY, AMALIA 949 HERON CIR 788,464.00 718,538.00 1,603,000.00 4,038 20 189.201-18 LA7IMORE, CARL 943 HERON CIR 953,172 00 749,328.00 1,702,500.00 4,409 OB 199-201-19 DAHIYA, SITYAM L 8 DAHIYA, SUSAN M 939 HERON CIR 878,48000 881,52000 1,558,000.00 4,038,20 199-201-20 TA, NICHOLAS &NGUYEN, THAI-VAN XUAN 935 HERON CIR 887,842.00 753,148.00 1,820,890 00 4,409 OB 199~2D1-21 CAMPBELL, ROBERT 0 TR 931 HERON CIR 980,519.00 786,184.00 1,748,697.00 4,184 90 189-201-22 LIENAU, ROBERT III 8 LIENAU, VICTORIA M 928 BLUE HERON 975,495.00 788,505.00 1,782,000.00 4,409.08 199.201-23 LEE, TONY T TR HAPPY DAYS 8 TR 932 BLUE HERON 871,418.00 788,701.00 1,838,120.00 4,184.90 199-201-24 KANG, SANG B 8 KANG, HYUN C 938 BLUE HERON 735,15900 734,233.00 1,489,392.00 4,184.90 199.201-25 LALONDE, BRIAN J 940 BLUE HERON 901,895.00 771,885.00 1,873,390.00 4,184.90 188-201-28 ABANIEL, RICARDO E JR 8 ABANIEL, ELIZABETH 944 BLUE HERON 795,789.00 731,750.00 1,527,61900 4,098.20 199-201-27 CHEN, JOE M TR 948 BLUE HERON 1,001,752.00 780,901.00 1,782,853.00 4,409 OB 199-201-28 WEISS, SCOTT E 8 WEISS, MARLA Y 952 BLUE HERON 945,899.00 707,098.00 1,852,995.00 4,038.2D 198-201-29 YU, AUSTIN H TR AT HERON & LIVING TR 958 BLUE HERON 974,514.00 735,988.00 1,710,500.00 4,184.90 199-201-30 PRAM, HELEN H 980 BLUE HERON 918,832.00 763,487.00 1,882,298.00 4,409.08 199.201-31 LESON, SEAN 984 BLUE HERON 941,014.00 729,488.00 1,870,500.00 4,184 9D 199-201-36 AHMED,SYED 973 BLUE HERON 1,066,51900 729,48700 1,795,00000 4,184.90 199-201-37 TRIBOLE, JEFFRY ROBERT TR 969 BLUE HERON 878,918.00 898,720.00 1,577,638.00 4,038.20 198-201-38 DAM, PHUOC HUU 3 DAM, ANN TRUONG 985 BLUE HERON 975,884.00 760,21800 1,735,902.00 4,409.08 199-201-39 LE, DON PHUOC 961 BLUE HERON 790,956.00 719,028 00 1,509,984.00 4,038.20 199-201-40 KAGAN, PAUL 8 KAGAN, MICHELLE 957 BLUE HERON 1,062,858.00 748,988 00 1,809,842.00 4,184 90 19201-41 HALL, ERIC K 953 BLUE HERON 888,901.00 708,814.00 1,876,71500 4,038 20 199-2012 SCHMIDT, DALE E 8 SCHMIDT, JILL E 849 BLUE HERON 988,739.00 788,701.00 1,756,44000 4,184.90 199-201.43 HUGHES, GLENN ALLEN & HUGHES, JULIE ROSALES 946 BLUE HERON 897,070.00 702,290.00 1,599,380.00 4,038 20 199-201-44 HEMPHILL, SCOTT R TR 941 BLUE HERON 1,035,31500 744,075.00 1,779,99000 4,409.08 190-2015 BAKER, WARRENTR 937 BLUE HERON 987,127.00 736,873.00 1,703,000.00 4,18490 199.2016 GRBAVAC, ROBERT B 933 BLUE HERON 971,877 00 792,813.00 1,784,890 00 4,408.06 199-2017 TRAN, VINCE 929 BLUE HERON 832,390 00 727,297 00 1,659,887.00 4,184 90 199-201-48 UN, LINDA L 925 BLUE HERON 857,488.00 553,482 00 1,410,948 00 4,038 20 199-201-49 O'BRIEN, JOHN M TR 821 BLUE HERON 891,953.00 588,780.00 1,580,713.00 4,184.90 199-201.50 SPARKS, GLENN M 917 BLUE HERON 868,883.00 628,528.00 1,397,389 00 4,098.20 199-20151 MULLIGAN, PHILLIP E 913 BLUE HERON 1,178,545 00 846,10100 1,825,848 00 4,409.06 199-201-52 SAARLOOS, HARVEY W TR 909 BLUE HERON 1,144,087.00 594,780.00 1,738,847.00 4,184.90 198-201-53 PAPADOPOULOS, MICHAEL & PAPADOPOULOS, JANE M 905 BLUE HERON 1,390,368.00 688,884 00 1,977,030 00 4,409.08 199-20154 CARSON, JAY A 8 CARSON, FARRAH A 901 BLUE HERON 1,182,404.00 612,015.00 1,794,41900 4,184.90 199-20155 LOPEZ, JEFFREY TR 900 BLUE HERON 1,134,838.00 821,881.00 1,768,51700 4,409.08 199-20158 REED, DAVID W 904 BLUE HERON 1,134,823.00 739,577.00 1,874,500 00 4,184.90 199-201-57 HAMILTON, H LEWIS 8 SELMAN-HAMILTON, PERRI 908 BLUE HERON 1,113,366 00 685,481.00 1,898,847 00 4,409 OB V7i8dan Faunaal Benneas Fked Year 2008/09 Annual Rapod Pape 1 of 2 City of Seal Beach Community Facilities District 2002-01 Charge Detail Report (Sorted by Assessor's Parcel Number) 198-201-59 YOUNG, KENNETH A TR 918 BLUE HERON 848,835 00 574,703.00 1,421,638 00 4,038 20 199.201.80 ATALAH, NADIA M 8 DODDRIDGE, GORDON L JR 920 BLUE HERON 1,014,899.00 803,701.00 1,819,800.00 4,184 90 199-20161 NGUYEN, LIZ LAN 924 BLUE HERON 890,088.00 597,190 00 1,587,259.00 4,409 08 199-2012 PERDUE, THOMAS D III 927 HERON CIR 1,258,172.00 779,588.00 2,037,74000 4,409.08 199-2013 OLSON, SCOTT LEE TR 923 HERON CIR 990,308.00 843,892 00 1,834,000 00 4,038.20 199-201$4 BOLTON, DAVID R TR 819 HERON CIR 954,179.00 787,521 00 1,722,000.00 4,184.90 199-2015 KIM, DENNIS S 8 KIM, GRACE H 915 HERON CIR 871,059.00 717,963.00 1,889,022 00 4,038.20 198-201.66 CARLTON, JEFFREY 911 HERON CIR 1,215,165.00 743,887.00 1,859,072.00 4,40908 199-2017 LITTLEFORD, JOEL DON TR 907 HERON CIR 1,073,683.00 715,663.00 1,789,148.00 4,038.20 198.2018 LAVEN, MICHAEL TR 903 HERON CIR 938,937.00 782,083 00 1,722,000.00 4,184.90 199-2019 COGAN, MICHAEL & COGAN, JEAN 914 HERON CIR 99'1,514 00 729,488.00 1,722,00000 4,184 90 199.201-70 GRAND, STEVE 8 GRAND, RISA B 918 HERON GR 1,119,352.00 759,146 00 1,672,50000 4,409 OB Total: :82,774,088.00 546,483,241.00 s108,287,998A0 5289,789.88 Parch Court: g4 WilWan Finanaal Servrcea Flecal Year 2008Po9 Annual Report page 2 of 2