Placentia City Council
July 21, 2026

854

3. Annexation Ordered. The Annexation Parcels are hereby added to and part of the District with full legal effect. The Annexation Parcels are subject to the Special Tax levied in connection with the District. The updated tax is set forth in the Engineer's Report, attached hereto as Exhibit "C" and incorporated herein by reference.

4. Description of Services. The following is a general description of the services provided in the District: installation, maintenance, and servicing of landscape improvements.

5. Amended Boundary Mao. The Boundary Map attached hereto as Exhibit "B" is hereby approved. This map amends, and does not supersede, the existing maps of the District. The City Council directs that said map be filed with the Orange County Recorder pursuant to Section 3113 of the Streets and Highways Code.

6. Notice of Special Tax Lien. The City Council directs the City Clerk to prepare a notice of special tax lien and that it be recorded pursuant to Section 3117.5 of the Streets and Highways Code with respect to the Annexation Parcel associated with the Boundary Map.

7. Severability. Should any provision, section, paragraph, sentence or word of this Resolution be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this resolution as hereby adopted shall remain in full force and effect.

8. Effective Date. This Resolution shall be effective immediately upon adoption.

The Mayor shall sign this Resolution, and the City Clerk shall attest and certify to the passage and adoption thereof.

APPROVED and ADOPTED this 21st day of July 2026.

Chad P. Wanke, Mayor
ATTEST:

Robert S. McKinnell, City Clerk
Resolution No. R-2026-54

855

STATE OF CALIFORNIA

COUNTY OF ORANGE
I, Robert S. McKinnell, City Clerk of the City of Placentia, do hereby certify that the foregoing Resolution was adopted at a regular meeting of the City Council of the City of Placentia held on the 21st day of July 2026, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

Robert S. McKinnell, City Clerk
APPROVED AS TO FORM:

Christian L. Bettenhausen, City Attorney
Exhibit A - List of Proposed LMD 92-1 Annexations
Exhibit B - Amended Map No. 2026/27-01
Exhibit C - Engineer's Report 2026-27 Landscape Maintenance District 92-1 Resolution No. R-2026-54

856

EXHIBIT A
Annexation Parcels
List of Proposed LMD 92-1 Annexations
APN
346-162-05
346-162-06
346-162-08
Resolution No. R-2026-54

857

Docusign Envelope ID:FC8430FE-055E-54DA-63F1-7FC7C0686554

PETITION REQUESTING ANNEXATION INTO

CITY OF PLACENTIA ASSESSMENT DISTRICTS AND

CONSENTING TO ASSESSMENT
The undersigned hereby declare(s) as follows:

1. He or she is the owner of the property identified at the end of the petition (the "Property") or are authorized to submit this document on behalf of the owner of the Property.

2. No other persons or entities are required to execute this petition for it to be an effective petition with respect to the Property.

3. He or she requests that the Property be annexed to City of Placentia Street Lighting District No. 81-1 and to City of Placentia Landscape Maintenance District No. 92-1 (each a "District" and collectively, the "Districts").

4. Pursuant to Section 22608 of the Streets and Highways Code, he or she waives any requirement for resolutions, report, notices of hearing, and right of majority protest with respect to the requested annexations.

5. He or she understands that, upon annexation, the Property will be subject to annual assessments in connection with each District. These assessments will be collected annually on the County property tax bill and are in addition to the general property tax and any other taxes, fees, or assessments to which the Property is subject. He or she consents to the assessments.

6. With respect to the imposition of the assessments, he or she waives his or her rights, if any, to notice, protest, hearing, and assessment ballot proceeding pursuant to Article XIII D, Section 4 of the California Constitution, Sections 53750 et seq. of the Government Code, or any other applicable law. He or she specifically states that if an assessment ballot proceeding was conducted in connection with the assessment against the Property, he or she would not cast a ballot in opposition to the assessment.

Uwe certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing is true and correct.
,—Signed by.

Signature 1:
shit buytti.t,
'- 601976G05249A._
Printed Name: Crystal Burckle Date: 6/10/2026 11:35:55 AM PDT Signature 2:I actin, l)(G Printed Name: Alan Toffoli Date: 6/9/2026 I 3 03:36 PM PDT 642994004521408...

Printed Name of Property Owner(s): THE NEW HOME COMPANY SOUTHERN CALIFORNIA LLC & TIG 9 LLC 1 Resolution No. R-2026-54

858

Docusign Envelope ID: FCB430FE-058E-B4DA-83F1-7FC7C0686554 Legal Description:

PARCELS 1, 2, 3, AND 4 OF VESTING TRACT MAP NO. 19300 FILED IN BOOK 346, PAGE 16,

INCLUSIVE, OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER ATTACHMENT "A"
Vicinity Map depicting Property to be Annexed into Assessment District 2 Resolution No. R-2026-54

859

EXHIBIT B
Amended Map No. 2026/27-01
Resolution No. R-2026-54

860

Legend
LMD 92-1 Parcels
City Boundary
Resolution No. R-2026-54

Landscape Maintenance
District (LMD) 92-1
Placentia OS, Planning Division, Development Services Department

PLACENTIA
Rich Heritage, Bright Future
861

EXHIBIT C
ENGINEER'S REPORT 2026-27
LANDSCAPE MAINTENANCE DISTRICT 92-1
Resolution No. R-2026-54

862

CITY OF PLACENTIA

ENGINEER'S REPORT
Landscape Maintenance District No. 92-1
Fiscal Year 2026-27
Landscape Maintenance District No. 92-1
June 2026
Intent Meeting: May 19, 2026
Public Hearing: June 16, 2026
863

City of Placentia
Landscape Maintenance District No. 92-1
Engineer's Report, Fiscal Year 2026-27

ENGINEER'S REPORT AFFIDAVIT
City of Placentia
Landscape Maintenance District 92-1
For Fiscal Year 2026-27
City of Placentia,
County of Orange, State of California
This Report describes the City of Placentia Landscape Maintenance District 92-1 and proposed changes or modifications related thereto including the improvements, budgets, parcels, and assessments to be levied for Fiscal Year 2026-27 pursuant to the City's Resolution of Intention. Reference is hereby made to the Orange County Assessor's maps for a detailed description of the lines and dimensions within District. The undersigned respectfully submit the enclosed report as directed by the City Council.

Date this 16th day of June 2026.

By: ,
Chris M. Tanio, PE
Director of Public Works/City Engineer

City of Placentia
Landscape Maintenance District No. 92-1
Engineer's Report, Fiscal Year 2026-27

TABLE OF CONTENTS
Introduction 5
Engineer's Report and Continuation of Assessments 5
Legislative Analysis 6
Proposition 218 6
Silicon Valley Taxpayers Association, Inc. v Santa Clara County Open Space Authority (2008) 44 Cal. 4th 431 6
Dahms v. Downtown Pomona Property (2009) 174 Cal. App. 4th 708 7 Bonander v. Town of Tiburon (2009) 180 Cal. App. 4th 103 7 Beutz v. County of Riverside (2010) 184 Cal. App. 4th 1516 8 Golden Hill Neighborhood Association v. City of San Diego (2011) 199 Cal. App. 4th 416 8
Compliance with Current Law 8
Plans & Specifications 9
Entrance Signs 9
Islands 9
Parkway Vistas 9
Unocal/Fieldstone Oil Well Lots — Right -of -Way Screen Planting 10 Street Right -of -Way Landscaping 10
Easements — Public Storm Drain and Sewer 100
Placentia Champions Sports Complex 11
Fiscal Year 2026-27 Estimate of Cost and Budget 12
Budget for Fiscal Year 2026-27 12
Method of Assessment Apportionment 14
Discussion of Benefit 14
Special Benefit 166
Proximity to Improved Landscaped Areas within the District 16 Access to Improved Landscaped Areas within the District 16 Improved Views within the Assessment Districts 16

City of Placentia
Landscape Maintenance District No. 92-1
Engineer's Report, Fiscal Year 2026-27
Extension of a Property's Outdoor Areas and Green Spaces for Properties within Close Proximity to the Improvements 16
Creation of Individual Lots for Residential and Commercial Use that, in Absence of the Assessments, Would Not Have Been Created 17
General Versus Special Benefit 17
Benefit Finding 18
Park Improvements - Quantification of General Benefit 18 Benefit to Property Outside the Assessment Districts 19 Benefit to Property Inside the Assessment Districts that is Indirect and Derivative19 Benefit To The Public At Large 20
Total Park Improvements General Benefits 21
Landscaping and Other Improvements - Quantification of General Benefit 210 Benefit to Property Outside the Assessment Districts 21 Benefit to Property Inside the Assessment Districts that is Indirect and Derivative22 Benefit To The Public At Large 22
Total Other Improvements General Benefits 23
Total Combined General Benefits 23
Final Step — Calculate the Current General Benefit Contribution from the City 23 Method of Apportionment 24
Annual Assessment Calculation 26
Duration of Assessment 27
Appeals of Assessments Levied to Property 27
Assessment Funds Must Be Expended Within the District Area 28 Assessment 28
Assessment Diagram 30
Assessment Roll 31

City of Placentia
Landscape Maintenance District No. 92-1
Engineer's Report, Fiscal Year 2026-27

INTRODUCTION
The City of Placentia (the "City") services and maintains perimeter and median landscaping, and other improvements ("Improvements") to various parts of the City. In order to fund the maintenance and operation (the "Services") of these projects and improvements, the City has formed Landscape Maintenance District No. 92-1 ("District").

This Engineer's Report ("Report") was prepared to establish the budget for the Improvements (as described below) that will be funded by the 2026-27 assessments and other revenue, and to determine the general and special benefits received from the Improvements by property within the District and the method of assessment apportionment to lots and parcels. This Report and the assessments have been made pursuant to the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code (the "Act") and Article XIIID of the California Constitution (the "Article").

ENGINEER'S REPORT AND CONTINUATION OF ASSESSMENTS
The assessment has been continued for over 20 years. In each subsequent year for which the assessments will be continued, the Placentia City Council (the "Council") must direct the preparation of an Engineer's Report, budgets, and proposed assessments for the upcoming fiscal year. After the report is completed, the City Council may preliminarily approve the Engineer's Report and the continued assessments and establish the date for a public hearing on the continuation of the assessments. Accordingly, this Engineer's Report (the "Report") was prepared pursuant to the direction of the City Council.

As required by the Act, this Report includes plans and specifications, a diagram or map of the District, the benefits received by property from the Improvements within the District, and the method of assessment apportionment to lots and parcels within the District.

If the Council approves this Engineer's Report and the continuation of the Assessments by resolution, a notice of public hearing must be published in a local newspaper at least 10 days prior to the date of the public hearing. The resolution preliminarily approving the Engineer's Report and establishing the date for a public hearing is typically used for this notice.

Following the minimum 10 -day time period after publishing the notice, a public hearing is held for the purpose of allowing public testimony about the proposed continuation of the Assessments. This hearing is currently scheduled for June 16, 2026. At this hearing, the Council will consider approval of a resolution confirming the continuation of the Assessments for Fiscal Year 2026-27. If so confirmed and approved, the Assessments would be submitted to the Orange County Auditor/Controller for inclusion on the property tax rolls for Fiscal Year 2026-27.

Page5of31 867

City of Placentia
Landscape Maintenance District No. 92-1
Engineer's Report, Fiscal Year 2026-27

LEGISLATIVE ANALYSIS
PROPOSITION 218
The Right to Vote on Taxes Act was approved by the voters of California on November 6, 1996, and is now Article XIIIC and XIIID of the California Constitution. Proposition 218 provides for benefit assessments to be levied to fund the cost of providing services and improvements, as well as maintenance and operation expenses to a public improvement which benefits the assessed property.

SILICON VALLEY TAXPAYERS ASSOCIATION, INC. V SANTA CLARA COUNTY OPEN SPACE AUTHORITY (2008) 44 CAL. 4TH 431
In July of 2008, the California Supreme Court issued its ruling on the Silicon Valley Taxpayers Association, Inc. v. Santa Clara County Open Space Authority ("SVTA").

This ruling is significant in that the Court clarified how Proposition 218 made changes to the determination of special benefit. The Court also found that:
• Benefit assessments are for special, not general, benefit • The services and/or improvements funded by assessments must be clearly defined
• Special benefits are directly received by and provide a direct advantage to property in the Improvement District
• The assessment paid by property should be proportional to the special benefits it receives from the Improvements.

This Engineer's Report and the process used to establish the continuation of the assessments for Fiscal Year 2026-27 are consistent with the SVTA decision and with the requirements of Article XIIIC and XIIID of the California Constitution based on the following factors:

1. The District is drawn to include the entire City, although only parcels deriving special benefits are included in the assessment rolls. Thus, zones of benefit are not required, and the assessment revenue derived from real property in the District is expended only on the Improvements in the District.

2. The Improvements which are constructed and maintained with assessment proceeds in the District are located in close proximity to the real property subject to the assessment. The Improvements provide landscaping and other services to the residents of such assessed property. The proximity of the Improvements to the assessed parcels provides a special benefit to the parcel being assessed pursuant to the factors outlined by the Supreme Court in that decision.

Page6of31 868

City of Placentia
Landscape Maintenance District No. 92-1
Engineer's Report, Fiscal Year 2026-27

3. Due to their proximity to the assessed parcels, the Improvements financed with assessment revenues in the District benefit the properties in that District in a manner different in kind from the benefit that other parcels of real property in the City derive from such Improvements, and the benefits conferred on such property in the District are more extensive than a general increase in property values.

4. The assessments paid in the District are proportional to the special benefit that each parcel within that Assessment District receives from the Improvements because:
a. The specific landscaping Improvements and maintenance and utility costs thereof in the District are specified in this Report; and

5. Such Improvement and maintenance costs in the District are allocated among different types of property located within the District, and equally among those properties which have similar characteristics, such as single-family residential parcels, multi -family residential parcels, commercial parcels, industrial parcels, etc.

DAHMS V. DOWNTOWN POMONA PROPERTY (2009) 174 CAL. APP. 4TH 708
In Dahms v. Downtown Pomona Property ("Dahms") the Court upheld an assessment that was 100% special benefit (i.e. 0% general benefit) on the rationale that the services and improvements funded by the assessments were directly provided to property in the assessment district. The Court also upheld discounts and exemptions from the assessment for certain properties.

BONANDER V. TOWN OF TIBURON (2009) 180 CAL. APP. 4TH 103 Bonander v. Town of Tiburon ("Bonander"), the 1st District Court of Appeal overturned a benefit assessment approved by property owners to pay for placing overhead utility lines underground in an area of the Town of Tiburon. The Court invalidated the assessments primarily on the grounds that the assessments had been apportioned to assessed property based on the costs within sub -areas of the assessment district instead of the overall cost of the improvements and the overall proportional special benefits.

City of Placentia
Landscape Maintenance District No. 92-1
Engineer's Report, Fiscal Year 2026-27
BEUTZ V. COUNTY OF RIVERSIDE (2010) 184 CAL. APP. 4TH 1516 Steven Beutz v. County of Riverside ("Beutz") the Court overturned an assessment for park maintenance in Wildomar, California, primarily because the general benefits associated with improvements and services were not explicitly calculated, quantified, and separated from the special benefits.

GOLDEN HILL NEIGHBORHOOD ASSOCIATION V. CITY OF SAN DIEGO (201 1) 199 CAL. APP. 4TH 416
On September 22, 2011, the San Diego Court of Appeal issued a decision on the Golden Hill Neighborhood Association v. City of San Diego appeal. This decision overturned an assessment for street and landscaping maintenance in the Greater Golden Hill neighborhood of San Diego, California. The court described two primary reasons for its decision. First, like in Beutz, the court found the general benefits associated with services were not explicitly calculated, quantified and separated from the special benefits. Second, the court found that the City had failed to record the basis for the assessment on its own parcels.

COMPLIANCE WITH CURRENT LAW
This Engineer's Report is consistent with the SVTA decision and with the requirements of Article XIIIC and XIIID of the California Constitution because the Improvements to be funded are clearly defined; the benefiting property in the District enjoys close and unique proximity, access and views to the Improvements; the Improvements serve as an extension of usable land area for benefiting properties in the District and such special benefits provide a direct advantage to property in the District that is not enjoyed by the public at large or other property.

This Engineer's Report is consistent with Beutz, Dahms and Greater Golden Hill because the Improvements will directly benefit property in the District and the general benefits have been explicitly calculated and quantified and excluded from the Assessments. The Engineer's Report is consistent with Bonander because the Assessments have been apportioned based on the overall cost of the Improvements and Services proportional to the special benefit to each property, rather than the proportional cost to the District to provide the Improvements to specific properties.

City of Placentia
Landscape Maintenance District No. 92-1
Engineer's Report, Fiscal Year 2026-27

PLANS & SPECIFICATIONS
The City maintains landscaping and other improvements in locations within the District's boundaries. The work and improvements to be undertaken by the Landscape Maintenance District No. 92-1 and the cost thereof paid from the levy of the annual Assessment provide special benefit to Assessor Parcels within the District as defined in the Method of Assessment herein. In addition to the definitions provided by the Landscaping and Lighting Act of 1972, (the "Act") the work and improvements are generally described as follows:

ENTRANCE SIGNS
The entrance signs with landscape improvements to be maintained are to be located at the following locations within the District:
• Central Avenue at Chapman Avenue (n/e corner)
• Central Avenue at Gordon Drive
• Central Avenue at Buck Place
• Buena Vista Street at Dressel Drive
• Buena Vista Street at Petry Drive
• Alta Vista Street at Chang Drive
• Alta Vista Street at Swail Drive
• Alta Vista Street at Tebay Drive

ISLANDS
The landscaped islands to be maintained by the District are located as follows:
• Kraemer Blvd. from Alta Vista Street to n/o City Hall • Connecticut Way e/o Kraemer Blvd
• Rose Drive from Alta Vista Street to Buena Vista Street

PARKWAY VISTAS
The landscaped parkway vistas to be maintained by the District are located as follows:
• Kraemer Blvd. e/s (n/o City Hall to Connecticut Way)
• Kraemer Blvd. e/s (Connecticut Way to Alta Vista St.) • Alta Vista Street n/s (from 900' w/o to 800' e/o Dunnavant Dr.) • Alta Vista Street n/s (Rose Dr. to Jefferson St.)
• Alta Vista Street n/s (Jefferson St. to Van Buren St.) • Alta Vista Street s/s (Kraemer Blvd. to All America Way) • Alta Vista Street s/s (Central Ave. to Dunnavant Dr.)

City of Placentia
Landscape Maintenance District No. 92-1
Engineer's Report, Fiscal Year 2026-27
• Alta Vista Street s/s (Dunnavant Dr. to Rose Dr.)
• Alta Vista Street s/s (Rose Dr. to Jefferson St.)
• Alta Vista Street s/s (Jefferson St. to Van Buren St.) • Rose Drive w/s (Alta Vista St. to 500'+ n/o Orangethorpe Ave.) • Rose Drive e/s (Alta Vista St. to north boundary of Shopping Center) • Rose Drive e/s (Alta Vista St. to 200' s/o Castner Dr.)

UNOCAL/FIELDSTONE OIL WELL LOTS - RIGHT-OF-WAY SCREEN

PLANTING
The landscaped screen planting areas to be maintained by the District are located as follows:
• Dressel Drive / Howard Place
• Mykannen Circle / Cisneros Lane
• Tidland Circle
• Nevin Lane / Tucker Place
• Nevin Lane / Evans Lane
• Gerhold Lane
• Hill Street / Granger Drive
• Larson Lane / Evans Lane

STREET RIGHT-OF-WAY LANDSCAPING
The street landscaping to be maintained by the District is located as follows:
• Jefferson Street e/s (Alta Vista St. to Garten Dr.)
• Buena Vista s/s (320'± w/o Petry Dr. to 500'± e/o Dressel Dr.) • Van Buren Street w/s (750' n/o Alta Vista St. to Orchard Dr.) • Chang Drive (Alta Vista St. to Evans Ln.)
• Dressel Drive (Buena Vista St. to Munoz PI.)
• Central Avenue (Alta Vista St. to Chapman Ave.)
• Chapman Avenue (Central Ave. to 1130'± east)
• Chapman Avenue (Mission Way to All America Way)
• All America Way w/s (City Hall to Alta Vista St.)
• All America Way e/s (Chapman Ave. 100'± s/o Dartmouth Dr.) • Van Buren Street e/s (Richfield Channel to 200' s/o Alta Vista St.) • Dunnavant Drive (Alta Vista to 1300'± south) (does not include Lot "F", Tract 15139)
• Other minor areas that front non-contiguous assessed parcels

EASEMENTS - PUBLIC STORM DRAIN AND SEWER
Landscaped easements to be maintained by the District are located as follows:

City of Placentia
Landscape Maintenance District No. 92-1
Engineer's Report, Fiscal Year 2026-27
• At various locations within TM 14161 (Fieldstone and Van Daele Tracts and TM 15699 Placentia Development Company)
• Does not include Lot "F," Tract 15139

PLACENTIA CHAMPIONS SPORTS COMPLEX
Maintenance and service may include (but is not limited to) the following':
• Payments for electrical energy and water usage
• Repair, replacement or enhancement of community building, parking lots, fencing, signage, lighting and fixed recreational structures such as playgrounds, play fields, courts, walkways, dugouts, bleachers, scoreboards, restrooms, drinking fountains, picnic tables and shelters, and ancillary items such as storage and utility structures • Irrigation, cultivation, pest control and replacement of plant material, trees, shrubs, ground cover, turf, supplies
• Personnel, utility, and equipment costs
• Contract services where applicable.

Installation, maintenance and servicing of Improvements, may include, but are not limited to, turf and play areas, landscaping, ground cover, shrubs and trees, irrigation systems, sidewalks, parking lots, drainage systems, lighting, fencing, entry monuments, basketball courts, tennis courts, other recreational facilities, graffiti removal and repainting, and labor, materials, supplies, utilities and equipment, as applicable, at each of the locations owned, operated or maintained by the District.

As applied herein, "Installation" means the construction of Improvements, including, but not limited to, land preparation (such as grading, leveling, cutting and filling), sod, landscaping, irrigation systems, walkways and drainage, lights, playground equipment, play courts, playing fields, recreational facilities and public restrooms. "Maintenance" means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of any improvement, including repair, removal or replacement of all or any part of any improvement; providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; the removal of trimmings, rubbish, debris, and other solid waste, and the cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti.
1 For Fiscal Year 2026-27, none of the expenditures shown in Table 1 are for the Placentia Champions Sports Complex. See Note "A" under Table 1 for more details.

City of Placentia
Landscape Maintenance District No. 92-1
Engineer's Report, Fiscal Year 2026-27
"Servicing" means the furnishing of electric current, or energy, gas or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements; or water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements.

Incidental expenses include all of the following: (a) The costs of preparation of the report, including plans, specifications, estimates, diagram, and assessment; (b) the costs of printing, advertising, and the giving of published, posted, and mailed notices; (c) compensation payable to the County for collection of assessments; (d) compensation of any engineer or attorney employed to render services in proceedings pursuant to this part; (e) any other expenses incidental to the construction, installation, or maintenance and servicing of the Improvements; (f) any expenses incidental to the issuance of bonds or notes pursuant to Streets & Highways Code Section 22662.5; and (g) costs associated with any elections held for the approval of a new or increased assessment (Streets & Highways Code §22526).

Modifications to the District structure could include, but are not limited to, substantial changes or expansion of the Improvements provided, substantial changes in the service provided, modifications or restructuring of the District including annexation or detachment of specific parcels, revisions in the method of apportionment, or proposed new or increased assessments.

The assessment proceeds will be exclusively used for Improvements within the District plus incidental expenses.

FISCAL YEAR 2026-27 ESTIMATE OF COST AND BUDGET
BUDGET FOR FISCAL YEAR 2026-27
The 1972 Act provides that the total costs for providing the maintenance and servicing of the District Improvements and facilities can be recovered in the assessment spread including incidental expenses. The latter can include engineering fees, legal fees, printing, mailing, postage, publishing, and all other costs identified with the District proceedings.

An estimate of District costs for fiscal year 2026-27 for the maintenance and servicing of the Improvements is provided below.

City of Placentia
Landscape Maintenance District No. 92-1
Engineer's Report, Fiscal Year 2026-27
Table 1 — FY 2026-27 Estimate of Costs
Expenditure Item
Amount
Salaries & Benefits
$ 6,438
Landscaping
$ 97,725
Telephone/Internet
$ 12,424
Electricity
$ 25,000
Water
$ 301,518
Estimated Expenditures
$ 443,105
Revenue Item
Amount
Direct Benefit Assessments
$ 507,834
General Fund Contribution
$ -
Estimated Revenues
$ 507,834
Budget Allocation to Parcels
Assessment per Assessment Unit (AU)
$ 154.87
Total Assessment Units (AUs)
3,279
Total Assessment Budget
$ 507,834
Notes to Estimate of Costs:

A. The Act requires that proceeds from the assessments must be deposited into a special fund that has been set up for the revenues and expenditures of the District. Moreover, funds raised by the assessment shall be used only for the purposes stated within this Report. Any balance remaining at the end of the Fiscal Year, June 30, must be carried over to the next Fiscal Year.

The District may also establish a reserve fund for contingencies and special projects as well as a capital improvement fund for accumulating funds for larger capital improvement projects or capital renovation needs. Any remaining balance would either be placed in the reserve fund, the capital improvement fund, or would be used to reduce future years' assessments.

B. The rate shown here is for an Assessment Unit (single family home or its equivalent). For the definition of the term AU and rates for other types of property, see the section titled, "Method of Assessment" and the sections following it in this report.

City of Placentia
Landscape Maintenance District No. 92-1
Engineer's Report, Fiscal Year 2026-27

METHOD OF ASSESSMENT APPORTIONMENT
This section of the Engineer's Report explains the benefits to be derived from the Improvements and the methodology used to apportion the total assessment to properties within the District.

The District consists of certain assessor parcels within the boundaries as defined by the Assessment Diagram referenced in this report and the parcels identified by the Assessor Parcel Numbers listed with the levy roll. The parcel list includes all privately and publicly owned parcels as shown. The method used for apportioning the Assessment is based upon the relative special benefits to be derived by the properties in the District over and above general benefits conferred on real property or to the public at large. The Assessment is apportioned to lots and parcels in proportion to the relative special benefit from the Improvements. The apportionment of special benefit is a two-step process: the first step is to identify the types of special benefit arising from the Improvements and the second step is to allocate the Assessments to property based on the estimated relative special benefit for each type of property.

DISCUSSION OF BENEFIT
In summary, the Assessments can only be levied based on the special benefit to property.

This benefit is received by property over and above any general benefits. With reference to the requirements for assessments, Section 22573 of the Landscaping and Lighting Act of 1972 states:
"The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements." Proposition 218, as codified in Article XIIID of the California Constitution, has confirmed that assessments must be based on the special benefit to property and that the value of the special benefits must exceed the cost of the assessment:
"No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel." The following benefit categories summarize the types of special benefit to residential, commercial, industrial and other lots and parcels resulting from the Improvements to be provided with the assessment proceeds. These types of special benefit are summarized as follows:

City of Placentia
Landscape Maintenance District No. 92-1
Engineer's Report, Fiscal Year 2026-27
A. Proximity to Improved Landscaped Areas and Other Public Improvements within the District.

B. Access to Improved landscaped areas and Other Public Improvements within the District.

C. Improved Views within the District.

D. Extension of a property's outdoor areas and green spaces for properties within close proximity to the Improvements.

E. Creation of individual lots for residential and commercial use that, in absence of the Assessments, would not have been created.

In this case, the recent SVTA v. SCCOSA decision provides enhanced clarity to the definitions of special benefits to properties from similar improvements in three distinct areas:
• Proximity
• Expanded or improved access
• Views
The SVTA v. SCCOSA decision also clarifies that a special benefit is a service or improvement that provides a direct advantage to a parcel and that indirect or derivative advantages resulting from the overall public benefits from a service or improvement are general benefits. The SVTA v. SCCOSA decision also provides specific guidance that park improvements are a direct advantage and special benefit to property that is proximate to a park that is improved by an assessment:

The characterization of a benefit may depend on whether the parcel receives a direct advantage from the improvement (e.g. proximity to a park) or receives an indirect, derivative advantage resulting from the overall public benefits of the improvement (e.g. general enhancement of the district's property values).

Proximity, improved access and views, in addition to the other special benefits listed herein further strengthen the basis of these assessments.

Moreover, the Dahms decision further clarified that certain services and improvements funded by assessments, that are over and above what otherwise would be provided and that other property in general and the public do not share or receive are 100% special benefit. The assessment -funded services upheld by Dahms included streetscape maintenance and security services.

City of Placentia
Landscape Maintenance District No. 92-1
Engineer's Report, Fiscal Year 2026-27

SPECIAL BENEFIT
The special benefits from the Improvements are further detailed below:

PROXIMITY TO IMPROVED LANDSCAPED AREAS WITHIN THE DISTRICT Only the specific properties within close proximity to the Improvements are included in the District. The District has been narrowly drawn to include the properties that receive special benefits from the Improvements. Therefore, property in the District enjoys unique and valuable proximity and access to the Improvements that the public at large and property outside the District do not share.

In absence of the Assessments, the Improvements would not be provided and the public improvements funded in the District would be degraded due to insufficient funding for maintenance, upkeep and repair. Therefore, the Assessments provide Improvements that are over and above what otherwise would be provided. Improvements that are over and above what otherwise would be provided do not by themselves translate into special benefits but when combined with the unique proximity and access enjoyed by parcels in the District, they provide a direct advantage and special benefit to property in the District.

ACCESS TO IMPROVED LANDSCAPED AREAS WITHIN THE DISTRICT Since the parcels in the District are nearly the only parcels that enjoy close access to the Improvements, they directly benefit from the unique close access to improved landscaping areas and other public improvements that are provided by the Assessments.

This is a direct advantage and special benefit to property in the District.

IMPROVED VIEWS WITHIN THE ASSESSMENT DISTRICTS
The City, by maintaining permanent public improvements funded by the Assessments in the District, provides improved views to properties in the District. The properties in the District enjoy close and unique proximity, access and views of the specific Improvements funded in the District; therefore, the improved and protected views provided by the Assessments are another direct and tangible advantage that is uniquely conferred upon property in the District.

EXTENSION OF A PROPERTY'S OUTDOOR AREAS AND GREEN SPACES

FOR PROPERTIES WITHIN CLOSE PROXIMITY TO THE IMPROVEMENTS In large part because it is cost prohibitive to provide large open land areas on property in the District, the residential, commercial and other benefiting properties in the District do not have large outdoor areas and green spaces. The Improvements within the District provide additional outdoor areas that serve as an effective extension of the land area for proximate properties because the Improvements are uniquely proximate and accessible to property in close proximity to the Improvements. The Improvements, therefore, provide

City of Placentia
Landscape Maintenance District No. 92-1
Engineer's Report, Fiscal Year 2026-27
an important, valuable and desirable extension of usable land area for the direct advantage and special benefit of properties in the District because such properties have uniquely good and close proximity to the Improvements.

CREATION OF INDIVIDUAL LOTS FOR RESIDENTIAL AND COMMERCIAL

USE THAT, IN ABSENCE OF THE ASSESSMENTS, WOULD NOT HAVE

BEEN CREATED
In most of the District, the original owner/developer(s) of the property within the District agreed unanimously to the Assessments. The Assessments provide the necessary funding for public improvements that were required as a condition of development and subdivision approval. Therefore, such Assessments allowed the original property to be subdivided and for development of the parcels to occur. As parcels were sold, new owners were informed of the Assessments through the title reports, and in some cases, through Department of Real Estate "White Paper" reports that the parcels were subject to assessment. Purchase of property was also an "agreement" to pay the Assessment.

Therefore, in absence of the Assessments, the lots within most of the District would not have been created. These parcels, and the improvements that were constructed on the parcels, receive direct advantage and special benefit from the Assessments.

GENERAL VERSUS SPECIAL BENEFIT
Article XIIIC of the California Constitution requires any local agency proposing to increase or impose a benefit assessment to "separate the general benefits from the special benefits conferred on a parcel." The rationale for separating special and general benefits is to ensure that property owners subject to the benefit assessment are not paying for general benefits. An assessment can fund special benefits but cannot fund general benefits. Accordingly, a separate estimate of the special and general benefit is given in this section.

In other words:

Total _ General Special
Benefit — Benefit ♦ Benefit
There is no widely accepted or statutory formula for general benefit. General benefits are benefits from improvements or services that are not special in nature, are not "particular and distinct" and are not "over and above" benefits received by other properties. SVTA vs. SCCOSA provides some clarification by indicating that general benefits provide "an indirect, derivative advantage" and are not necessarily proximate to the improvements.

City of Placentia
Landscape Maintenance District No. 92-1
Engineer's Report, Fiscal Year 2026-27
In this Report, the general benefit is liberally estimated and described, and then budgeted so that it is funded by sources other than the Assessment.

The starting point for evaluating general and special benefits is the current, baseline level of service. The Assessment will fund Improvements "over and above" this general, baseline level and the general benefits estimated in this section are over and above the baseline.

A formula to estimate the general benefit is listed below:

General
Benefit
Benefit to Real
Property Outside
th e Assessment
District
Benefit to Real
Property Inside the Benefit to
+ Assessment District + the Public that
is Indirect and at Large
Derivative
Special benefit, on the other hand, is defined in the state constitution as "a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large." The SVTA v. SCCOSA decision indicates that a special benefit is conferred to a property if it "receives a direct advantage from the improvement (e.g., proximity to a park)." In these Assessments, as noted, properties in the District have close and unique proximity, views and access to the Improvements and uniquely improved desirability from the Improvements and other properties and the public at large do not receive significant benefits because they do not have proximity, access or views of the Improvements. Therefore, the overwhelming proportion of the benefits conferred to property is special and is only minimally received by property outside the Districts or the public at large.

BENEFIT FINDING
The District contains the Placentia Champions Sports Complex, which is distinct from other landscape improvements in the District. Due to significantly different characteristics between the two types of improvements, benefits will be discussed and calculated separately under the categories of "Park Improvements" and "Landscaping Improvements."

PARK IMPROVEMENTS - QUANTIFICATION OF GENERAL BENEFIT
In this section, the general benefit from park Improvements is liberally estimated and described, and then budgeted so that it is funded by sources other than the Assessment.

This Park section is focused on the Placentia Champions Sports Complex. Other District Improvements are discussed below in "Landscaping Improvements - Quantification of General Benefit."

City of Placentia
Landscape Maintenance District No. 92-1
Engineer's Report, Fiscal Year 2026-27

BENEFIT TO PROPERTY OUTSIDE THE ASSESSMENT DISTRICTS
For the purposes of calculating benefit to properties outside the District, the Park will be considered as a neighborhood park insomuch as it provides amenities for nearby properties. While it functions as a community (or even regional) facility for organized sports such as baseball and soccer, the general benefit derived from those activities will be discussed under the "Benefit to the General Public" below.

Properties within the District receive much of the special benefits from the park Improvements because properties in the District enjoy unique close proximity and access to the park Improvements that is not necessarily enjoyed by other properties or the public at large. However, certain properties within the proximity/access radius of the park Improvements, but outside of the boundaries of the District, may receive some benefit from the park Improvements. Since this benefit is conferred to properties outside the District boundaries, it contributes to the overall general benefit calculation and will not be funded by the Assessments.

Since the properties outside the District but within the effective proximity radii are not assessed for their benefits because they are outside of the area that can be assessed by the District, this is a form of general benefit to other property. A 50% reduction factor is applied to these properties because they are all on only one side of the Improvements and properties in the District enjoy the advantage of over twice the average proximity to the park Improvements. The general benefit to property outside of the District is calculated as follows with the parcel and data analysis:

Assumptions:
• 651 parcels outside the District but within 0.5 miles of the Park ■ 2,212 parcels in the District
■ 50% relative benefit compared to property within the District.

Calculation:

General Benefit to property outside the District = 651/(651+2,212)*0.5 = 11.37%

BENEFIT TO PROPERTY INSIDE THE ASSESSMENT DISTRICTS THAT IS

INDIRECT AND DERIVATIVE
The "indirect and derivative" benefit to property within the District is particularly difficult to calculate. A solid argument can be presented that all benefit within the District is special, because the Improvements are clearly "over and above" and "particular and distinct" when compared with the baseline level of service and the unique proximity, access and views of the Improvements enjoyed by benefiting properties in the District.

City of Placentia
Landscape Maintenance District No. 92-1
Engineer's Report, Fiscal Year 2026-27
Nevertheless, the SVTA vs. SCCOSA decision indicates there may be general benefit "conferred on real property located in the district" A measure of the general benefits to property within the Assessment area is the percentage of land area within or directly abutting the District that is publicly owned and used for regional purposes such as major roads, rail lines and other regional facilities because such properties used for regional purposes could provide indirect benefits to the public at large. Approximately 2.91% of the land area in the District is used for such regional purposes, so this is a measure of the general benefits to property within the District.

BENEFIT TO THE PUBLIC AT LARGE
The general benefit to the public at large can be estimated by the proportionate amount of time that the District's parks facilities are used and enjoyed by individuals who are not residents, employees, customers or property owners in the District. In this District, there is only one park facility: Placentia Champions Sports Complex ("Complex"). The Complex serves the needs of many people in two primary ways: as a neighborhood park serving nearby residents for shorter and more frequent visits; and as a community or regional park serving people from all over Placentia and the surrounding areas as a destination for organized sports such as soccer and baseball league play. The general benefit of the former was discussed above; the general benefit of the latter is discussed here.

When the Complex functions as a community or regional park, it becomes a destination for longer and less frequent visits (for example, scheduled league play). Of the five ways benefits are conferred (proximity, access, views, extension of a property's green space, and creation of lots), the community or regional function confers benefits only in the "access" and "extension of a property's green space" categories (proximity does not apply as these trips are from outside the District; people do not come for the views; and the facility was not tied to the creation of faraway lots). Therefore, the general benefit is no more than 40%. That figure, however, is reduced by the percentage that the community or regional park benefits property owners within the district (special benefit). The City estimates that approximately 71% of participants in these organized sports are from the City of Placentia. However, only 15.11% of Placentia parcels lie inside the district, so it is estimated that (15% of 71% =) 10.73% of the users are from within the District.

Conversely, 89.27% are from outside the District. Therefore (40% x 89.27% =) 35.71 % of the benefits from the Parks Improvements are general benefits to the public at large.

City of Placentia
Landscape Maintenance District No. 92-1
Engineer's Report, Fiscal Year 2026-27

TOTAL PARK IMPROVEMENTS GENERAL BENEFITS
Using a sum of these three measures of general benefit, we find that approximately

49.98% of the benefits conferred by the Improvements may be general in nature and should be funded by sources other than the assessment.

PARKS GENERAL BENEFIT CALCULATION

11.37% (Outside the District)
+ 2.91% (Property within the District)
+ 35.71% (Public at Large)
= 49.99% (Total General Benefit)

LANDSCAPING AND OTHER IMPROVEMENTS - QUANTIFICATION OF

GENERAL BENEFIT
In this section, the general benefit from landscaping and other types of Improvements (other than park Improvements) is liberally estimated and described, and then budgeted so that it is funded by sources other than the Assessment.

BENEFIT TO PROPERTY OUTSIDE THE ASSESSMENT DISTRICTS
Properties within the District receive almost all of the special benefits from the other Improvements because properties in the District enjoy unique close proximity and access to the Improvements that is not enjoyed by other properties or the public at large.

However, certain properties within the proximity/access radius of the Improvements, but outside of the boundaries of the District, may receive some benefit from the Improvements. Since this benefit is conferred to properties outside the District boundaries, it contributes to the overall general benefit calculation and will not be funded by the Assessments. The general benefit to property outside of the District is calculated with the parcel and data analysis.

Since the properties outside the District but with frontage abutting the Improvements cannot be assessed by the District, this is a form of general benefit to other property. The primary way that parcels outside the district benefit by the Improvements is from views.

Therefore, parcels that abut the landscape areas and are not separated from the Improvements by a privacy fence are counted for this general benefit. The general benefit to property outside of the District is calculated as follows:

City of Placentia
Landscape Maintenance District No. 92-1
Engineer's Report, Fiscal Year 2026-27
ASSU M PTIONS:
■ 22 parcel s outsi de the District
■ 2,212 parcels in the District.

CALCU LATION:

General Benefit to property outside the District
22/(22+2,212) =039%

BENEFIT TO PROPERTY INSIDE THE ASSESSMENT DISTRICTS THAT IS

INDIRECT AND DERIVATIVE
The "indirect and derivative" benefit to property within the District is particularly difficult to calculate. A solid argument can be presented that all benefit within the District is special, because the other Improvements are clearly "over and above" and "particular and distinct" when compared with the baseline level of service and the unique proximity, access and views of the other Improvements enjoyed by benefiting properties in the District.

Nevertheless, the SVTA vs. SCCOSA decision indicates there may be general benefit "conferred on real property located in the district" A measure of the general benefits to property within the Assessment area is the percentage of land area within or directly abutting the District that is publicly owned and used for regional purposes such as major roads, rail lines and other regional facilities because such properties used for regional purposes could provide indirect benefits to the public at large. Approximately 2.91% of the land area in the District is used for such regional purposes, so this is a measure of the general benefits to property within the District.

BENEFIT TO THE PUBLIC AT LARGE
The general benefit to the public at large can be estimated by the proportionate amount of time that the District's other Improvements including landscaping are used and enjoyed by individuals who are not residents, employees, customers or property owners in the District. It should be noted that these other Improvements do not attract the public at large in the same way as park improvements — and they confer far less benefit to the public at large than do similar park improvements. In essence, the public does not visit an area to enjoy setback landscaping in the same way as they may visit a park.

One way to measure the special benefit to the general public is by the car trips through an area with Improvements. Of the five ways benefits are conferred (proximity, access, views, extension of a property's green space, and creation of lots), the only benefit that is conferred by way of pass -by car trips is views, which accounts for 10% of the total

City of Placentia
Landscape Maintenance District No. 92-1
Engineer's Report, Fiscal Year 2026-27
benefits, since views are less critically important and are enjoyed much less often to the average non-resident driver than to a resident.

Next, the views factors are weighted by the relevant number of car trips. Using the lane miles as representative of pass -by traffic, an analysis shows that 90% of the lane miles are on arterial or collector streets where the general public has views of the landscaping.

Therefore (90% of 10% =) 9.0% of the benefits from the other Improvements are general benefits to the public at large.

TOTAL OTHER IMPROVEMENTS GENERAL BENEFITS
Using a sum of these three measures of general benefit, we find that approximately

12.89% of the benefits conferred by the Improvements may be general in nature and should be funded by sources other than the assessment.

LANDSCAPING GENERAL BENEFIT CALCULATION

0.99% (Outside the District)
+ 2.91% (Property within the District)
+ 9.00% (Public at Large)

12.90% (Total General Benefit)

TOTAL COMBINED GENERAL BENEFITS
The total general benefit for Parks is 49.98% and for Landscaping and other Improvements is 12.89%. However, none of the District budget is for Parks — all of the budget is currently allocated for Landscaping and other Improvements. Therefore, using those proportions to calculate a weighted average of the general benefits for each type of Improvement, the resulting total combined general benefit is (0 x 49.98%) + (1.00 x

12.90%) = 12.90%.

Although this analysis finds that 12.90% of the assessment may provide general benefits from the Improvements, the Assessment Engineer establishes a requirement for a minimum contribution from sources other than the assessments of 13%. This minimum contribution above the measure of general benefits will serve to provide additional coverage for any other general benefits.

FINAL STEP — CALCULATE THE CURRENT GENERAL BENEFIT

CONTRIBUTION FROM THE CITY
This general benefit cannot be funded from the Assessments; it must be funded from other sources such as the City's General Fund or other non -District funds. These contributions can also be in the form of in -lieu contributions to the installation and

City of Placentia
Landscape Maintenance District No. 92-1
Engineer's Report, Fiscal Year 2026-27
maintenance of the Improvements such as other City assets that support and protect the Improvements. The City of Placentia will contribute both monetary and in -lieu resources to ensure that the general benefits conferred by the proposed Improvements are not funded by the District's Assessments.

A summary and quantification of these other contributions from the City is discussed below:

The City of Placentia owns, maintains, rehabilitates, and replaces curb and gutter along the border of the District Improvements. This curb and gutter serve to support, contain, retain, manage irrigation flow and growth, and provide a boundary for the Improvements.

The contribution from the City towards general benefit from the maintenance, rehabilitation, and replacement of the curb and gutter is conservatively estimated to be 5%.

The City owns and maintains a storm drainage system along the border of District Improvements. This system serves to prevent flooding and associated damage to the Improvements and manage urban runoff including local pollutants loading from the Improvements. The contribution from the City towards general benefit from the maintenance and operation of the local storm drainage system is conservatively estimated to be 5%.

The City owns and maintains local public streets along the border of the District Improvements. These public streets provide access to the Improvements for its enjoyment as well as efficient maintenance. The contribution from the City towards general benefit from the maintenance of local public streets is conservatively estimated to be 5%.

The value of the construction of the improvements can be quantified and monetized as an annuity. Since this construction was performed and paid for by non -assessment funds, this "annuity" can be used to offset general benefit costs and is conservatively estimated to contribute 10%.

The total General Benefit is liberally quantified at 13% which is entirely offset by the conservatively quantified total non -assessment contribution towards general benefit described above of 25%. Therefore, no additional General Benefit must be funded by the City.

METHOD OF APPORTIONMENT
The development of an Assessment methodology requires apportioning to determine the relative special benefit for each property. As the District was formed by a different

City of Placentia
Landscape Maintenance District No. 92-1
Engineer's Report, Fiscal Year 2026-27
engineer of record, the precise language from the most recent Engineer's Report is included below:

It has been determined that the improvements provide a specific and special benefit to all assessed parcels of land in the development area. Landscaping and irrigation of street rights -of -way, entryways, islands, sewer and storm drain easements, areas surrounding existing oil wells and the parkway vistas aesthetically enhances the development areas. The landscaped pedestrian corridor along Alta Vista Street also provides pedestrian access throughout the development area. The aesthetic enhancement and use of the parkway vistas increases the desirability of the properties located within the boundaries of the District mainly because of the property's close proximity and accessibility to the improvements. Therefore, maintenance of these public improvements renders a special and direct benefit to the parcels located throughout the District and the levy of a special assessment for the maintenance of the improvements is deemed appropriate.

The method of apportionment (Method of Assessment) set forth in the Report is based on the premise that each assessed property receives special benefits from the landscape improvements within the District, and the assessment obligation for each parcel reflects that parcel's proportional special benefits as compared to other properties that receive special benefits.

The assessment method used in spreading the annual landscape maintenance costs is based on an assessment unit (AU) factor as follows:

Each Single Family Detached Residential Unit is considered to be one AU and is assessed the cost attributable to one AU.

Multi -Family Residential Units are assessed 0.70 or 70% of an AU since they have a higher density than Single Family Detached Units (number of dwelling units/acres). The decrease in assessment is a direct result of the reduced amount of assessable acreage per Multi -Family Unit and the reduction in occupancy per unit.

In converting Developed Commercial, Industrial, Institutional and Other Non - Residential properties to AUs, the factor used is based on the City of Placentia average single-family residential density of ten dwelling units per acre. Therefore, the parcels in this Class will be assessed 10 AU per acre or any portion thereof.

These properties benefit from the maintenance of improvements because of the enhanced desirability resulting from well -kept landscape areas. Improved aesthetic appeal also increases the draw of businesses to purchase or lease property and the increased opportunity to draw clientele.

City of Placentia
Landscape Maintenance District No. 92-1
Engineer's Report, Fiscal Year 2026-27
Assessable Undeveloped Acreage also benefits from the maintenance and service of landscape improvements. This benefit comes in the form of enhanced desirability due to the improved aesthetics of the area resulting from improvements. The enhanced aesthetics increases the desirability of the property to future homeowners and future commercial property owners or lessors. However, because the property is vacant, less use will be made of the improvements. It is reasonable to derive that vacant property, when compared to developed property, receives about half of the benefit of developed properties, therefore the Single - Family Residence acreage equivalent used for developed non- residential properties of 10 AU per acres is reduced to 5 AU per acre for undeveloped land.2 Further clarification on the four benefit classes is provided below:

Class I - Single family detached residential, including condominium form of ownership of single-family detached dwellings.

Class II - Developed commercial, industrial, and institutional where a map or a building permit for construction has been issued as of March 15 of the prior Fiscal Year.

Class III— Multi -family residential and attached residential, approved project where a map has been recorded or a building permit for construction of dwelling units has been issued as of March 15 of the prior Fiscal Year.

Class IV — Undeveloped and all other properties that are not in Class 1, 11, or III regardless if they have been approved for future development or are in the process of securing development approval as of June 15 of the prior Fiscal Year3.

ANNUAL ASSESSMENT CALCULATION
For Fiscal Year 2026-27, the rate of Assessments for the District is not increased from prior years. The Calculations for maintenance, service and incidentals follows:
2 From the 2013-14 Engineer's Annual Levy Report, City of Placentia, Landscape Maintenance District No. 92-1, dated June 4, 2013
3 From the 2013-14 Engineer's Annual Levy Report, City of Placentia, Landscape Maintenance District No. 92-1, dated June 4, 2013
Page26of31 888

City of Placentia
Landscape Maintenance District No. 92-1
Engineer's Report, Fiscal Year 2026-27
Table 2 - Assessment Calculation
Zone
Quantity
AU Ratio Factor
Assessment Units
2,239 parcels
x

1.00 =
2,239.00
II

75.17 acres
x

10.00 =
751.70
III
412 units
x

0.70 =
288.40
IV
0 acres
x

5.00 =
-
Total Assessment Units
3,279.10
AU
Cost
$ 507,834.22
/
3279.10
=
$
154.87
Class Assessments
Class I
Single Family
Each parcel is assessed at one assessment unit:
$154.87 x 1.0 =
$154.87 /Parcel
Class II
Comm, Industrial
Each Acre is assessed at 10 assessment units:
$154.87 x 10.00 =
$1,548.70 / Acre
Class III
Multi -Family
Each Unit is assessed at 0.70 assessment units:
$154.87 x 0.70 =
$108.41 /Unit
Class IV
Undeveloped
Each Acre is assessed at 5 assessment units:
$154.87 x 5.00 =
$774.35 /Acre

DURATION OF ASSESSMENT
The District was formed or annexed in previous years. It is proposed that the Assessments be continued every year after their formation or annexation, so long as the public Improvements need to be maintained and improved, and the City requires funding from the Assessments for these Improvements in the District. As noted previously, the Assessment can continue to be levied annually after the City Council approves an annually updated Engineer's Report, budget for the Assessment, Improvements to be provided, and other specifics of the Assessment. In addition, the City Council must hold an annual public hearing to continue the Assessment.

APPEALS OF ASSESSMENTS LEVIED TO PROPERTY
Any property owner who feels that the Assessment levied on the subject property is in error as a result of incorrect information being used to apply the foregoing method of

City of Placentia
Landscape Maintenance District No. 92-1
Engineer's Report, Fiscal Year 2026-27
assessment may file a written appeal with the City of Placentia City Administrator or his or her designee. Any such appeal is limited to correction of an Assessment during the then -current Fiscal Year and applicable law. Upon the filing of any such appeal, the City Administrator or his or her designee will promptly review the appeal and any information provided by the property owner. If the City Administrator or his or her designee finds that the Assessment should be modified, the appropriate changes shall be made to the Assessment RoII. If any such changes are approved after the Assessment Roll has been filed with the County for collection, the City Administrator or his or her designee is authorized to refund to the property owner the amount of any approved reduction. Any dispute over the decision of the City Administrator or his or her designee shall be referred to the Placentia City Council, and the decision of the City Council shall be final.

ASSESSMENT FUNDS MUST BE EXPENDED WITHIN THE DISTRICT AREA The net available Assessment funds, after incidental, administrative, financing and other costs shall be expended exclusively for Improvements within the boundaries of the District or as described herein, and appropriate incidental and administrative costs as defined in the Plans and Specifications section.

ASSESSMENT
Whereas, the City of Placentia directed the undersigned engineer of Work to prepare and file a report presenting an estimate of costs, a Diagram for the District and an assessment of the estimated costs of the Improvements upon all assessable parcels within the District; Now, Therefore, the undersigned, by virtue of the power vested in me under the Act, Article XIIID of the California Constitution, and the order of the Placentia City Council, hereby makes the following Assessment to cover the portion of the estimated cost of the Improvements, and the costs and expenses incidental thereto to be paid by the District.

The amount to be paid for said Improvements and the expense incidental thereto, to be paid by the District for the Fiscal Year 2026-27 is generally as follows:

Table 3 — FY 2026-27 Summary Cost Estimate
Salaries & Benefits
Operating Expenses
Total for Services
Less General Fund Contribution
Less Other Revenue
Net Amount of Assessments
$ 6,438
$ 436,667
$ 443,105
$ 507,834
0 0

City of Placentia
Landscape Maintenance District No. 92-1
Engineer's Report, Fiscal Year 2026-27
As required by the Act, an Assessment Diagram of the District is hereto attached and incorporated herein by reference. The distinctive number of each parcel or lot of land in the District is its Assessor Parcel Number, appearing on the Assessment Roll.

I do hereby assess and apportion the net amount of the cost and expenses of the Improvements, including the costs and expenses incident thereto, upon the parcels and lots of land within the District, in accordance with the special benefits to be received by each parcel or lot, from the Improvements, and more particularly set forth in the Estimate of Cost and Method of Assessment in the Report.

The Assessment is made upon the parcels or lots of land within the District in proportion to the special benefits to be received by the parcels or lots of land from the Improvements.

Each parcel or lot of land is described in the Assessment Roll by reference to its parcel number as shown on the Assessor's Maps of the County of Orange for the Fiscal Year 2026-27. For a more particular description of the property, reference is hereby made to the deeds and maps on file and of record in the office of the County Recorder of the County.

I hereby will place opposite the Assessor Parcel Number for each parcel or lot within the Assessment Roll, the amount of the assessment for the Fiscal Year 2026-27 for each parcel or lot of land within the District.

Date: June 16, 2026
Director of Public Works/City Engineer
Chris Tanio, PE

City of Placentia
Landscape Maintenance District No. 92-1
Engineer's Report, Fiscal Year 2026-27

ASSESSMENT DIAGRAM
The District boundary is conterminous with the City Limits. The parcels to be assessed in Landscape Maintenance District No. 92-1 are shown on the Assessment Diagram, which is on file with the City Clerk of the City of Placentia and includes all those properties included in the original formation of the District and subsequent annexations. The following Assessment Diagram is for general location only and is not to be considered the official boundary map. The lines and dimensions of each lot or parcel within the District are those lines and dimensions as shown on the maps of the Assessor of the County of Orange, for Fiscal Year 2026-27, and are incorporated herein by reference, and made a part of this Diagram and this Report.

LEGEND
=PLACENTIA CITY LIMIT 6 LMD No. 92-1 BQUNDAF

ASSESSED PARCELS
Champans Sports Park

City of Placentia
Landscape Maintenance District No. 92-1
Engineer's Report, Fiscal Year 2026-27

ASSESSMENT ROLL
An Assessment Roll (a listing of all parcels assessed within the District and the amount of the Assessment) will be filed with the City Clerk and is, by reference, made part of this Report and is available for public inspection during normal office hours at the City Hall at 401 East Chapman Avenue, Placentia, California 92870.

Each lot or parcel listed on the Assessment Roll is shown and illustrated on the latest County Assessor records and these records are, by reference, made part of this Report.

These records shall govern all details concerning the description of the lots or parcels.

LMD 92-1 Engineer's Report - FY 2026-27 -
revised
Final Audit Report
2026-06-02
Created: 2026-06-02
By: Matthew Di Mario ([email protected])
Status: Signed
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894

Agenda Item No: 2.d

PLACENTIA CITY COUNCIL AGENDA REPORT
Meeting Date: July 21, 2026
Submitted by: Matthew Di Mario
From: Public Works
Subject:

PUBLIC HEARING FOR THE ANNEXATION OF PROPERTIES INTO COMMUNITY FACILITIES DISTRICT NO. 2014-01 (PUBLIC SERVICES)
Financial Impact:

There is no fiscal impact associated with this recommended action.

Summary:

On February 18, 2014, the City Council adopted Resolution No. R-2014-10, establishing Community Facilities District No. (CFD) 2014-01 Public Services CFD to provide an ongoing sustainable funding source paid for by new developments to help fund the cost of public safety services. On March 4, 2014, the City Council adopted Ordinance No. 2014-03, authorizing the City Council to determine, by resolution, on or before August 1 of each year, the specific special tax to be levied on each parcel of land within the CFD. At that time, the City Council also, in the adoption of the territory map, approved the area designated as future annexation to the CFD. Staff recommends that the City Council adopt a resolution for the approval of 3 new annexations into the CFD.

Recommended Action:

It is recommended that the City Council:

1. Open the Public Hearing concerning Resolution No. R-2026-55; and

2. Receive the Staff Report and consider all public testimony; and

3. Close the Public Hearing; and

4. Adopt Resolution No. R-2026-55, a Resolution of the City Council of the City of Placentia, California, ordering the annexation of territory to its Community Facilities District No. 2014-01 (Public Services) (Annexation 2026/27-01) and approving the amended map for said District.

Strategic Plan Statement:

There is no specific strategic planning goal or objective associated with this agenda item.

Discussion:

In 1978, California voters enacted Proposition 13, which limited the ability of local public agencies to increase property taxes based on a property's assessed value. In 1982, the Mello - Roos Community Facilities Act of 1982 (Act) was created to provide an alternate method of 895

financing public infrastructure and services. Under the Act, a CFD may fund public improvements with a useful life of 5 years or more, such as park and recreational facilities, streets, sewer systems, schools, libraries, childcare facilities, and other public infrastructure.

CFDs may also fund the maintenance and servicing of public landscape areas, parks, streetlights, storm drain systems, and public safety services.

In 2014, the City Council created CFD 2014-01 to provide a new revenue stream paid for by new residential developments to be used to help fund the cost of public safety services. All new residential development projects are required to annex their properties into the Public Services CFD as a condition of approval for receiving their entitlements. The special tax that is currently being assessed on properties within the CFD is based upon a Fiscal Impact Analysis (FIA) that was prepared for the initial formation of the CFD in 2014. Based on the FIA, the tax rate needed to support public safety services for new residential developments was established at $225.00 for each single-family residential unit per year. Therefore, the special tax rates for 2014-15 were $225.00 per residential unit for single-family residential property and $170.00 per residential unit for multi -family residential property. The CFD special tax rates are subject to annual escalation, so the tax rate for FY 2026-27 is $410.22 per unit for single- family residential property and $309.95 per unit for multi -family residential property. For the tax to be applied to a parcel, either construction must be completed or a building permit for the home needs to be issued by the City by June 1 of the preceding fiscal year. This item's recommendation is only for the annexation of properties into the CFD. There is no levy of the special tax associated with this recommendation. An item will be presented to the City Council in June 2027 for the levy of the annual special tax of the CFD.

FY 2026-27 Annexations to CFD
City Council Resolution No. R-2014-04 designated the entire territory of the City as a future annexation area for the District. This resolution also allows for voluntary annexation into the District. The table below lists the parcels that have requested annexation:

APN
Unit Type
346-162-05
Multi -family residential
346-162-06
Multi -family residential
346-162-08
Multi -family residential
The proposed annexation parcels are directly related to the Sumner Village development at 440 N Jefferson St. Staff is recommending the adoption of Resolution No. R-2026-55 (Attachment 1) to approve the annexation of parcels into the CFD, listed in Exhibit A of R- 2026-55.

Financial Summary:

There is no fiscal impact associated with this recommended action. A special tax levy will be presented to the City Council later in June 2027 to set the annual assessment on all parcels in the CFD for Fiscal Year 2027-28.

Attachments
Attachment 1 - Resolution No. R-2026-55
Attachment 1 - Exhibit C for Resolution No. R-2026-55
896

RESOLUTION NO. R-2026-55

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PLACENTIA, CALIFORNIA, ORDERING THE ANNEXATION

OF TERRITORY TO ITS COMMUNITY FACILITIES DISTRICT
NO. 2014-01 (PUBLIC SERVICES) (ANNEXATION 2026/27-01)

AND APPROVING THE AMENDED MAP FOR SAID DISTRICT
A. Recitals.
(i) The City Council of the City of Placentia ("City Council"), by adoption of Resolution No. 2014-10, established the City's Community Facilities District No. 2014-01 (Public Services) ("District") pursuant to the Mello -Roos Community Facilities Act of 1982 (Government Code Section 53311 et seq.) (the "Act").
(ii) The City Council, by adoption of Ordinance No. O-2014-03, levied an annual special tax against all non-exempt parcels of real property within the District ("Special Tax") to fund public safety services within the District. (iii) The City Council, by adoption of Resolution No. 2014-04, designated all territory within the City of Placentia to be a Future Annexation Area for the District. (iv) Pursuant to Resolution No. 2014-04, territory located within the Future Annexation Area may be annexed to the District upon the unanimous approval of the owner or owners of each parcel or parcels at the time that the parcel or parcels are annexed, without additional hearings.
(v) The landowners of the property ("Parcels") sought to be annexed to the District are listed in Exhibit "A" attached hereto and incorporated herein by reference. The landowners of the Parcels have submitted to the City petitions unanimously requesting and approving annexation of those Parcels ("Annexation Parcels") to the District. (vi) A boundary map entitled "Amended Map No. 2026/27-01 of Community Facilities District No. 2014-01 of the City of Placentia, County of Orange, State of California", showing the extent of the proposed annexation, is attached hereto as Exhibit "B" to this Resolution and incorporated herein by reference ("Boundary Map"). (vii) The City Council desires to annex the Annexation Parcels to the District.

B. Resolution.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLACENTIA, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

1. Recitals. The above recitals are all true and correct and are herein incorporated.

Resolution No. R-2026-55

897

2. Special Election. A special election was held on July 21, 2026, and the landowners of the Annexation Parcels unanimously voted to be annexed to the District.

The City Council hereby certifies the results of the special election. The City Council hereby finds and determines that all proceedings and actions taken by the City Council pursuant to the Act were and are valid and in conformity with the Act.

3. Annexation Ordered. The Annexation Parcels are hereby added to and part of the District with full legal effect. The Annexation Parcels are subject to the Special Tax levied in connection with the District. For reference, a copy of the rate and method of apportionment for the Special Tax is attached hereto as Exhibit "C" and incorporated herein by reference.

4. Description of Services. The following is a general description of the services provided in the CFD:

Public Safety Services: Police protection services and fire protection and suppression services, including but not limited to (i) the costs of contracting services, (ii) equipment, vehicles, ambulances and paramedics, fire apparatus, supplies, (iii) the salaries and benefits of City staff that directly provide police protection services and fire protection and suppression services and other services as defined herein, respectively, and (iv) City overhead costs associated with providing such services within the District.

5. Amended Boundary Map. The Boundary Map attached hereto as Exhibit "B" is hereby approved. This map amends, and does not supersede, the existing maps of the District. The City Council directs that said map be filed with the Orange County Recorder pursuant to Section 3113 of the Streets and Highways Code.

6. Notice of Special Tax Lien. The City Council directs the City Clerk to prepare a notice of special tax lien and that it be recorded pursuant to Section 3117.5 of the Streets and Highways Code with respect to the Annexation Parcel associated with the Boundary Map.

7. Severability. Should any provision, section, paragraph, sentence or word of this Resolution be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this resolution as hereby adopted shall remain in full force and effect.

8. Effective Date. This Resolution shall be effective immediately upon adoption.

The Mayor shall sign this Resolution, and the City Clerk shall attest and certify to the passage and adoption thereof.

Resolution No. R-2026-55

898

APPROVED and ADOPTED this 21st day of July 2026.

Chad P. Wanke, Mayor
ATTEST:

Robert S. McKinnell, City Clerk

STATE OF CALIFORNIA

COUNTY OF ORANGE
I, Robert S. McKinnell, City Clerk of the City of Placentia, do hereby certify that the foregoing Resolution was adopted at a regular meeting of the City Council of the City of Placentia held on the 21st day of July 2026, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

Robert S. McKinnell, City Clerk
APPROVED AS TO FORM:

Christian L. Bettenhausen, City Attorney
Exhibit A - List of Proposed CFD 2014-01 Annexations
Exhibit B - Amended Map No. 2026/27-01
Exhibit C - Rate and Method of Apportionment for Community Facilities District No. 2014- 01 (Public Services)
Resolution No. R-2026-55

899

EXHIBIT A
Annexation Parcels
List of Proposed CFD 2014-01 Annexations
APN
346-162-05
346-162-06
346-162-08
Resolution No. R-2026-55

900

Docusign Envelope ID: FC8430FE-058E-84DA-83F1-7FC7C0686554

LANDOWNER PETITION
Requesting and Approving Annexation of Territory to
City of Placentia Community Facilities District No. 2014-01 (Public Services) Pursuant to the Mello -Roos Community Facilities Act of 1982 (Section 53311 et seq. of the California Government Code) (the "Act"), the undersigned ("Landowner") hereby petitions the City Council of the City of Placentia (the "City") as follows:

1. Landowner certifies that it is the owner of certain lots and parcels (the "Property"), which lots and parcels are identified at the end of this document.

2. Landowner recognizes that the Property is located within the "future annexation area" of City of Placentia Community Facilities District No. 2014-01 (Public Safety Services) (the "District"), as shown on the Boundary Map entitled "Map of Proposed Boundaries of City of Placentia Future Annexation Area of Community Facilities District No. 2014-01 (Public Services)" (the "Map"). The Map is recorded in the records of the Orange County Recorder at Book 94 of Maps of Assessment and Community Facilities Districts at page 47.

3. Landowner requests and approves the annexation of the Property to the District.

4. Landowner acknowledges receipt of the Rate and Method of Apportionment for the District entitled "RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX" (attached as Exhibit "B" hereto) and acknowledges that, upon annexation, the Property will be subject to an annual special tax to fund the following services, as well as the incidental expenses of administration of the District:

A. Public Safety Services: Police protection services and fire protection and suppression services, including but not limited to (i) the costs of contracting services, (ii) equipment, vehicles, ambulances and paramedics, fire apparatus, supplies, (iii) the salaries and benefits of City staff that directly provide police protection services and fire protection and suppression services and other services as defined herein, respectively, and (iv) City overhead costs associated with providing such services within the District.

5. Landowner acknowledges that, pursuant to Section 53339.7(a) of the Mello - Roos Act, as a consequence of the consent and approval given by it in this petition, the City Council of the City may annex the Property to the District without any further public hearings or elections.
1 Resolution No. R-2026-55

901

Docusign Envelope ID: FC8430FE-058E-84DA-83F1-7FC7C0686554 Landowner Petition
CFD No. 2014-01

EXHIBIT A
Annexation Map No. 3 of Community Facilities District No. 2014-01 (Public Safety Services)
The following map shows the extent of the proposed annexation:

Resolution No. R-2026-55

902

Docusign Envelope ID:FC8430FE-055E-54DA-63F1-7FC7C0686554 Landowner Petition
CFD No. 2014-01
The undersigned is the owner of the following parcels, identified below by their legal description or by the Assessor's Parcel Number assigned to them by the Orange County Assessor:

Legal Description
PARCELS 1, 2, 3, AND 4 OF VESTING TRACT MAP NO. 19300 FILED IN BOOK 346, PAGE 16, INCLUSIVE, OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY

RECORDER
The full and complete legal name of the undersigned is as follows:

The undersigned certifies under penalty of perjury under the laws of the State of California that it is authorized to execute this petition and that the foregoing is true and correct:

Owner Name: THE NEW HOME COMPANY SOUTHERN CALIFORNIA LLC [Printed] Signed by:

By:

Its:

Date:
-at L
\- D5661 g76C65249k
[Signature]
Crystal Burckle [Printed Name of Signer]
Vice President Community Development [Title]
6/10/2026 1 11:35:55 AM PDT [Date]
Owner Name: TIG 9 LLC [Printed]
,—Signed by,
By: I [Signature]
—''.--B420B-40C452140B
Alan Toffoli [Printed Name of Signer]
Its: Managing Member [Title]
Date:

Resolution No. R-2026-55

6/9/2026 13:03:36 PM PDT
[Date]
903

EXHIBIT B
Amended Map No. 2026/27-01
Resolution No. R-2026-55

904

Legend
CFD 2014-01 ParceLs
- — - City Boundary
Resolution No. R-2026-55

Yorba Linda Blvd
Community Facilities
District (CFD) 2014-01
Placentia GIS, Planning Division, Development Services Department

PLACENTIA
Rich Heritage, Bright Future
905

EXHIBIT C

RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 2014-01
(PUBLIC SERVICES)
Resolution No. R-2026-55

906

RATE AND METHOD OF APPORTIONMENT OF

SPECIAL TAX

CITY OF PLACENTIA
COMMUNITY FACILITIES DISTRICT NO. 2014-01
(PUBLIC SERVICES)
A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels within the City of Placentia Community Facilities District No. 2014-01 (Public Services), ("CFD No. 2014-01"), other than Assessor's Parcels classified as Exempt Property as defined herein, and collected each Fiscal Year commencing in Fiscal Year 2014-2015, in an amount determined by the CFD Administrator through the application of the procedures described below. A11 of the real property within CFD No. 2014-01, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided, including property subsequently annexed to CFD No. 2014-0'1, unless a separate Rate and Method of Apportionment of Special Tax is adopted for the annexation area.

A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre or Acreage" means the land arca of an Assessor's Parcel, expressed in acres, 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 Subdivision Map, other final map, other parcel map, other condominium plan, or functionally equivalent map or instrument recorded in the Office of the Country Recorder. The square footage of an Assessor's Parcel is equal to the Acreage multiplied by 43,560.
"Act" means the Mello -Roos Communities Facilities Act of 1982 as amended, being Chapter

2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the following actual or reasonably estimated expenses related to the administration of CFD No. 2014-01: the costs of determining the amount of the levy of Special Taxes, the collection of Special Taxes, including the expenses of collecting delinquencies and pursuing foreclosures, the payment of a proportional share of salaries and benefits of any City employee and City overhead whose duties are directly related to the administration of CFD No. 2014-01, fees and expenses for counsel, audits, costs associated with responding to public inquiries regarding CFD No. 2014-01, and any and all other costs incurred in connection with the administration of CFD No. 2014-01. "Annual Escalation Factor" means the greater of five percent (5%) or the annual percentage increase, if any, of the All Urban Consumers Consumer Price Index ("CPI").

The annual CPI used shall be for the area of Los Angeles — Riverside — Orange County, CA as determined by the Bureau of Labor Statistics for the twelve (12) months ending the preceding December 31.
"Assessor's Parcel" means a Condominium lot, 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 Assessor of the County designating parcels by assessor's parcel number.
"Base Year" means Fiscal Year beginning July 1, 2014 and ending June 30, 2015. 1W I L LDAN
Financial Services
1 CFD No. 2014-01
907

"Boundary Map" means the map of the boundaries of CFD No. 2014-01 recorded on January 21, 2014 in the Orange County Recorder's Office in Book 94, Pages 46, of Maps of Assessments and Community Facilities Districts (instrument number 2014-24969), as the same may be amended by annexation from time to time hereafter. "Building Permit" means a permit issued for new construction of a residential dwelling. For purposes of this definition, "Building Permit" shall not include permits for construction or installation of retaining walls, grading, utility improvements, or other such improvements not intended for human habitation.
"CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement for Services and providing for the levy and collection of the Special Taxes for CFD No. 2014-01.
"CFD No. 2014-01" means City of Placentia Community Facilities District No. 2014-01 (Public Services) established by the City Council under the Act. "City" means the City of Placentia.
"City Council" means the Council of the city of Placentia, acting as the legislative body of CFD No. 2014-01.
"Condominium" means an estate in real property consisting of an undivided interest in common in a portion of a parcel of real property together with a separate interest in space in a residential, industrial or commercial building on such real property, such as an apartment, office or store. A condominium may include in addition a separate interest in other portions of such real property. Such estate may, with respect to the duration of its enjoyment, be either:
(1) An estate of inheritance or perpetual estate;
(2) An estate for life; or
(3) An estate for years, such as a leasehold or a sublease hold. "County" means the County of Orange.
"Developed Property" means an Assessor's Parcel of Taxable Property for which a Building Permit was issued on or before June 1 preceding the Fiscal Year for which Special Taxes are being levied.
"Developed Residential Property" means an Assessor's Parcel of Taxable Property for which a Building Permit was issued on or before June 1 preceding the Fiscal Year for which Special Taxes are being levied and which Building Permit was issued for purposes of constructing one or more Residential Unit(s).
"Exempt Property" means all Assessor's Parcels within CFD No. 2014-01 that are exempt from the Special Taxes pursuant to law or Section F herein. "Final Map" means an Assessor's Parcel Map, a Final Subdivision Map, condominium plan, lot line adjustment, or any other map functionally considered to be an equivalent development map that has been recorded in the Office of the County Recorder. "Final Subdivision Map" means a subdivision of property creating single family residential buildable Lots by recordation of a final subdivision map or parcel map pursuant to the Subdivision Map Act (California Government Code § 66410, et seq.), or recordation of a condominium plan pursuant to California Civil Code § 1352, that creates individual Lots or condominium lots for which building permits may be issued without further subdivision and is recorded prior to June 1 preceding the Fiscal Year in which the Special Tax is being levied. "Fiscal Year" means the period commencing on July 1 of any year and ending the following June 30.
41, WILLDAN
Financial Services
2 CFD No. 2014-01
908

"Future Annexation Area" means the areas designated for potential future annexation to CFD No. 2014-01 as shown in the "Map of Proposed Boundaries of City of Placentia Future Annexation Area of Community Facilities District No. 2014-01 (Public Services)" recorded and on file with the Orange County Recorder's Office.
"Land Use Type" means any of the land use types listed in Table 1 below. "Lot" means property within a Final Map identified by a lot number or condominium number for which a Building Permit has been issued or may be issued. "Maximum Special Tax" means the maximum Special Tax determined in accordance with Section C, which may be levied in any Fiscal Year on an Assessor's Parcel of Taxable Property. "Multi -Family Residential Property" or "MFR Property" means all Assessor's Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing a residential structure consisting of five (5) or more residential units that share common walls, including, but not limited to, condominiums, and apartment units. "Property Owner Association Property" means for each Fiscal Year any property within the boundaries of CFD 2014-01 that was owned by, or irrevocably dedicated as indicated in an instrument recorded with the County Recorder to, a property owner association, including any master or sub -association, as of June 1.
"Proportionately" means in a manner such that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor's Parcels within each Land Use Type. "Public Property" means any property that is owned by, dedicated or irrevocably dedicated to a city, the federal government, the State of California, the County, or any other public agency (each, a "Public Entity"); provided, however, that if any such property is leased by such a Public Entity to a private entity and is thereby subject to taxation pursuant to § 53340.1 of the Act, such leasehold estate shall be classified and taxed according to the use thereof. "Residential Property" means all Assessor's Parcels of Developed Property within CFD No. 2014-01 for which a Building Permit has been issued for purposes of constructing one or more Residential Unit(s).
"Residential Unit" means any residence in which a person or persons may live, which is not considered to be used for non-residential purposes.
"Services" means those authorized services that may be funded by CFD No. 2014-01 pursuant to the Act, as amended, including, without limitation, those services authorized to be funded by CFD No. 2014-01 as set forth in the documents adopted by the City Council at the time CFD No. 2014-01 was formed.
"Single -Family Residential Property" or "SFR Property" means an Assessor's Parcel classified as Developed Property for which a Building Permit(s) has been issued for purposes of constructing one or more single-family residential dwelling units including residential structures or Condominium structures that consist of 4 or fewer units which share common walls. "Special Tax" means the special tax authorized to be levied within CFD No. 2014-01 pursuant to the Act to fund the Special Tax Requirement.
"Special Tax Requirement" rneans the amount, as determined by the CFD Administrator, for any Fiscal Year to: (i) pay the costs of providing the Services during such Fiscal Year, (ii) pay Administrative Expenses associated with the Special Tax, (iii) establish or replenish any operational reserve fund established for Services, (iv) pay incidental expenses related to the Services as authorized pursuant to the Act, (v) fund an amount equal to a reasonable estimate

WI LLDAN
Financial Services 1
3 CFD No. 2014-01
909

of delinquencies expected to occur in the Fiscal Year in which the Special Tax will he levied ("Estimated Special Tax Delinquency Amount") and (vi) fund the shortfall, if any, in the Special Tax revenues collected in the preceding Fiscal Year necessary to fund the Special Tax Requirement for Services for such Fiscal Year where such shortfall resulted from delinquencies in the payment of Special Taxes in such Fiscal Year that exceeded the Estimated Special Tax Delinquency Amount included in the Special Tax Requirement for Services for such Fiscal Year.
"Taxable Property" means all Assessor's Parcels that are not exempt from the Special Tax pursuant to law or Section F.
"Undeveloped Property" means an Assessor's Parcel of Taxable Property for which a Building Permit has not been issued on or before June 1 preceding the Fiscal Year for which Special Taxes are being levied.

B. CLASSIFICATION OF ASSESSOR'S PARCELS
Each Fiscal Year, beginning with Fiscal Year 2014-2015, using the definitions above, each Assessor's Parcel within CFD 2014-01 shall be classified by the CFD Administrator as Taxable Property or Exempt Property. In addition, each such Fiscal Year, each Assessor's Parcel of Taxable Property shall be further classified by the CFD Administrator as Developed Property or Undeveloped Property. Developed Property shall be further classified as Single -Family Residential Property or Multi -Family Residential Property. Commencing with Fiscal Year 2014-2015 and for each subsequent Fiscal Year, Developed Residential Property shall be subject to the levy of Special Taxes pursuant to Section C below.

C. MAXIMUM ANNUAL SPECIAL TAXES

1. Developed Residential Property
Each Fiscal Year commencing in Fiscal Year 2014-2015, each Assessor's Parcel of Developed Residential Property shall be subject to the Special Tax. The Maximum Special Tax for Developed Residential Property for Fiscal Year 2014-2015 is shown below in Table

1. TABLE 1

DEVELOPED RESIDENTIAL PROPERTY

MAXIMUM SPECIAL TAX RATES
Land Use Type
Maximum
Special Tax
Residential
SFR Property
$225 per Residential Unit
MFR Property
$170 per Residential Unit
For each subsequent Fiscal Year following the Base Year, the Maximum Special Tax rate shall be increased from the Maximum Special Tax rate in effect for the prior Fiscal Year by the Annual Escalation Factor.
'WILLDAN I
Financial Services
4 CFD No. 2014.0
910

2. Annexed Property
Each Fiscal Year commencing in Fiscal Year 2014-2015, each Assessor's Parcel of Developed Residential Property that has been annexed into CFD 2014-01 shall be subject to the prevailing Special Tax in effect during the then current Fiscal Year and as determined by Section C.1 above.

3. Undeveloped Property
Each Fiscal Year commencing in Fiscal Year 2014-2015, each Assessor's Parcel classified as Undeveloped Property shall be exempt from the levy of the Special Tax

4. Exempt Property
No Special Tax shall be levied on Exempt Property as defined in Section F.

For each Fiscal Year, if the use or ownership of an Assessor's Parcel or Exempt Property changes so that such Assessor's Parcel is no longer classified as one of the uses set forth in Section F, therefore making such Assessor's Parcel no longer eligible to be classified as Exempt Property, such Assessor's Parcel shall be deemed to be Taxable Property and shall be taxed pursuant to the provisions of Section C.

D. METHOD OF APPORTIONMENT OF SPECIAL TAX
Commencing in Fiscal Year 2014-2015 and for each subsequent Fiscal Year, the CFD Administrator shall levy the Special Tax on all Taxable Property of CFD No. 2014-0i until the total amount of Special Tax levied equals the Special Tax Requirement. The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property within CFD No. 2014-01 up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax Requirement.

Notwithstanding any provision of this Section D to the contrary, under no circumstances will the Special Tax levied against any Assessor's Parcel of Developed Property that is classified as Residential Property be increased by more than ten percent (10%) per Fiscal Year as a consequence of delinquency or default in the payment of Special Taxes by the owner of any other Assessor's Parcel, excluding therefrom the increased amount levied pursuant to the Annual Escalation Factor.

E. PREPAYMENT OF SPECIAL TAX
The Special Tax shall be levied in perpetuity for the purpose of financing ongoing authorized services and therefore may not be prepaid.

F. EXEMPTIONS
The City Council shall classify as Exempt Property: (i) Public Property, (ii) Property Owner Association Property, (iii)Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, including but not limited to property designated for open space, trails, pathways, parks or park and recreation related facilities, (iv) property reasonably designated by the City or CFD Administrator as Exempt Property due to deed restrictions, conservation easement, or similar factors.

VWW I LLDAN j
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5 CFD No. 2014-01
911

G. APPEALS
Any property owncr claiming that the amount or application of the Special Tax is not correct may file a written notice of appeal with the CFD Administrator not later than twelve months after having paid the first installment of the Special Tax that is disputed. The CFD Administrator shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the decision of the CFD Administrator requires that the Special Tax for an Assessor's Parcel be modified or changed in favor of the property owner, a cash refund shall not be made but an adjustment shall be made to the Special Tax on that Assessor's Parcel in the subsequent Fiscal Year(s) to compensate for the overpayment of the Special Tax.

H. MANNER OF COLLECTION
The annual Special Taxes shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that the Special Taxes may be billed and collected at a different time or in a different manner if necessary to meet the financial obligations of CFD No. 2014-01.

VWILLDAN f
Financial Services
6 CFD No, 2014-01
912