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Resolution No. 38202,15 RESOLUTION NO. 3820 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS DECLARING AND ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 1 (SORRENTO HOMES), PROVIDING FOR THE LEVY OF A SPECIAL TAX TO PAY FOR CERTAIN PUBLIC FACILITIES IN AND FOR SUCH COMMUNITY FACILITIES DISTRICT AND CALLING A SPECIAL ELECTION TO SUBMIT TO THE QUALIFIED ELECTORS WITHIN SUCH COMMUNITY FACILITIES DISTRICT THE QUESTION OF LEVYING SUCH SPECIAL TAX AND ESTABLISHING AN APPROPRIATIONS LIMIT FOR SUCH COMMUNITY FACILITIES DISTRICT. WHEREAS, the City Council (the "City Council ") of the City of Cypress (the "City ") has heretofore on August 6, 1990, adopted Resolution No. 3800 stating its intention to form a community facilities district under and pursuant to the Mello -Roos Community Facilities Act of 1982, as amended (the "Act ") being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, and calling a public hearing on the question of the establishment of such community facilities district, which community facilities district was designated as "Community Facilities District No. 1 (Sorrento Homes) of the City of Cypress" (the "Community Facilities District" or the "District "); and WHEREAS, a copy of Resolution No. 3800, setting forth the map of the proposed boundaries of the Community Facilities District and the facilities proposed to be provided therein, and the rate and method of apportionment of the special tax proposed to be'`evied within the District is on file with the Clerk of the City and incorporated herein by reference; and WHEREAS, on August 23, 1990, notice was published in the News Enterprise, Los Alamitos, California, as required by Government Code Section 53322 relative to the intention of the City Council to form proposed Community Facilities District, to levy a special tax within the boundaries of the proposed Community Facilities District and to establish an appropriations limit for the proposed Community Facilities District; and WHEREAS, on September 10, 1990, the City Council conducted a noticed public hearing as required by the Act relative to the proposed formation of Community Facilities District, the levy of the special tax therein, the establishment of an appropriations limit for the District and the issuance of bonded indebtedness by the District at the conclusion of which the City Council determined to proceed with forming the District through the adoption of this resolution; and WHEREAS, prior to the commencement of the public hearing on September 10, 1990, there was filed with the City Council a report (the "Report ") containing a description of the facilities necessary and adequate to meet the needs of the District, and an estimate of the cost of such facilities and incidental expenses to be financed by the District as required by Section 53321.5 of the Government Code, and such Report has been reviewed by the City Council and is incorporated herein and made a part of the record of the public hearing; and 2 4J WHEREAS, at the public hearing all persons desiring to be heard on all matters pertaining to the formation of the Community Facilities District, the levy of the special tax, the proposed method and apportionment of the special tax therein, the establishment of an appropriations limit for the Community Facilities District, the issuance of bonded indebtedness and all other matters as set forth in Resolution Nos. 3800 and 3801 were heard and a full and fair hearing was held; and WHEREAS, at the public hearing evidence was presented to the City Council on the matters before it, and this City Council at the conclusion of the hearing is fully advised as to all matters relating to the formation of the District, the levy of the special tax, the establishment of an appropriations limit and the issuance of bonded indebtedness therein; and WHEREAS, on the basis of all of the foregoing, the City Council has determined at this time to proceed with the establishment of the Community Facilities District, and to call an election therein to authorize the levy of the special tax therein (as such tax is more particularly outlined in the Report) to pay for the public facilities proposed to be financed by the Community Facilities District, and to establish an appropriations limit for the Community Facilities District; and WHEREAS, a negative declaration (the "Negative Declaration ") regarding the formation of the District and the proposed issuance of bonded indebtedness by the District has been prepared in compliance with the California Environmental Quality Act of 1970 (Public Resources Code, Section 21000 et seq.) ( "CEQA ") and the City's CEQA Guidelines. NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL OF THE CITY OF CYPRESS, AS FOLLOWS: Section 3. Each of the above recitals is true and correct. Section 3. A community facilities district to be designated "Community Facilities District No. 1 (Sorrento Homes) of the City of Cypress" is hereby established pursuant to the Act. The City Council is hereby appointed to act as the legislative body of the Community Facilities District pursuant to the Act. The City Council hereby finds and determines that all prior proceedings taken with respect to the establishment of the District were valid and in conformity with the requirements of law, including the Act. This finding is made in accordance with the provisions of Section 53325.1 of the Government Code. Section, 3. The map of the boundaries of Community Facilities District, as described in Resolution No. 3800, are incorporated herein, and shall be the boundaries of Community Facilities District. The map was recorded by the County Recorder for the County of Orange on August 13, 1990 in Book 52, Page 39 of the book of maps of assessment and community facilities districts as required by Section 3111 of the Streets and Highways Code. Section A. The facilities (the "Facilities ") authorized to be provided within the Community Facilities District are the public facilities and appurtenances, including streets and highways, drainage facilities, sewer facilities, traffic and safety lighting facilities, parkway landscaping CYP1 -RES6 -2- improvements and school facilities together with appurtenances and appurtenant work, including equipment, real property and other tangible property, described in Resolution No. 3800 and the Report and attached hereto as Exhibit "A ", and incorporated herein and made a part hereof. Section 1. The City Council has considered the Negative Declaration prepared with respect to the formation of the District and the financing of the Facilities which is on file with the City Council and finds, on the basis of the initial study attached thereto, that there is no substantial evidence that the formation of the District and the issuance of bonds to finance the construction and acquisition of the Facilities will have a significant effect on the environment and the City Council approves the Negative Declaration. The Clerk of the City is hereby authorized and directed to file a Notice of Determination and a copy of the Negative Declaration with the County Clerk. Section A. Except where funds are otherwise available, it is the intention of the City Council to levy annually in accordance with the procedures contained in the Act a special tax sufficient to pay for: (i) the Facilities (including incidental expenses for the design, planning, engineering and inspection of the Facilities); (ii) the principal and interest and other periodic costs on the bonds proposed to be issued to finance the Facilities, including the establishment and replenishment of any reserve funds deemed necessary by the District, and (iii) the costs of forming the Community Facilities District and administering the levy and collection of the special tax and all other administrative costs related to the special tax levy, bond issues or District operations. The rate and method of apportionment of the special tax are described in detail in Exhibit "B" attached hereto. Exhibit "B" allows each landowner and resident within the District to estimate the maximum amount that may be levied against each parcel. The special tax is based on the expected demand that each parcel of real property within the Community Facilities District will place on the Facilities and on the expected benefit that each parcel will derive from the Facilities or the right to access the Facilities. The City Council hereby determines the rate and method of apportionment of the special tax set forth in Exhibit "B" to be reasonable. The special tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act and such special tax is not on or based upon the ownership of real property. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code, a continuing lien to secure each levy of the special tax will attach to all nonexempt real property in the District and the lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the special tax by the legislative body ceases. The office of the City Engineer of the City located at 5275 Orange Avenue, Cypress, California 90630, the telephone number of which is (714) 229 -6740 is hereby designated as the office responsible for preparing annually a current roll of special tax levy obligations by assessor's parcel number and for estimating future special tax levies pursuant to Section 53340.1 of the Act. CYP1 -RES6 -3- 24S Section 7. The City Council finds that the proposed Facilities are necessary to meet the increased demand put upon the City as a result of new development within the Community Facilities District. Section $. Written protests against the establishment of the District have not been filed by the property owners of one -half (1/2) or more of the area of nonexempt land within the Community Facilities District. There are fewer than twelve registered voters within the territory of the Community Facilities District. Section 2. According to the Funding and Acquisition Agreement by and between the owner of the lands proposed to be included in the Community Facilities District (the "Owner ") dated February 12, 1990 (the "Funding and Acquisition Agreement "), the Owner deposited $100,000 as a proceedings deposit with the City to compensate the City for all costs incurred by the City in conducting proceedings for the formation of the Community Facilities District and the issuance of bonds (the "Proceedings Deposit "). Pursuant to Section 53314.9 of the Act, the Proceedings Deposit, subject to refund of any unused portion, shall be reimbursed to the Owner as provided in the Funding and Acquisition Agreement from the proceeds of bonds issued by the Community Facilities District. Section 10. The special tax proposed to be levied in the District to pay for the proposed. Facilities has not been protested by the owners of one -half (1/2) or more of the area of nonexempt land within the District or by any registered voters. Section 11. A special election is hereby called for the Community Facilities District on the propositions of levying the special tax on the property within the Community Facilities District and establishing an appropriations limit in the amount of $15,500,000 in connection with the District pursuant to Section 53325.7 of the Government Code and shall be consolidated with the election on the proposition of incurring bonded indebtedness, pursuant to Section 53351 of the Government Code. The proposed propositions relative to incurring indebtedness in an amount not to exceed the maximum aggregate principal amount of $15,500,000 and authorizing the levy of the special tax and establishing such an appropriations limit are combined into one ballot proposition, which shall be substantially in the form attached hereto as Exhibit "C ". Section 12. The special election for Community Facilities District No. 1 on the proposition of incurring the bonded indebtedness, authorizing the levy of the special tax and establishing an appropriations limit for the District pursuant to Section 53325.7 of the Government Code shall be held on September 10, 1990, subject to receipt by the Clerk of the City of the unanimous consent of the landowners of record in the District as of the close of the September 10, 1990 public hearing to a waiver of the time limits for setting the election and a waiver of any written analysis, arguments or rebuttals as set forth in Sections 53326 and 53327 of the Government Code. If such waivers and concurrence are not received on or prior to September 10, 1990, the election shall be rescheduled to the earliest possible date on which the landowners and the City Clerk as election official mutually agree. CYP1 -RES6 -4- Section 12. It is hereby found that there were fewer than 12 registered voters within the territory of the proposed Community Facilities District during each of the 90 days preceding the opening of the September 10, 1990 public hearing regarding the formation of the District and, pursuant to Section 53326 of the Government Code, the ballots for the special election shall be distributed by personal service, or by mail, with return postage prepaid, by the City Clerk, as election official, to the landowners of record within the Community Facilities District as of the close of the protest hearing. Each landowner shall have one vote for each acre or portion thereof that he or she owns within the Community Facilities District, as provided in Section 53326 of the Government Code and may return the ballot by mail or in person to the Election Official not later than 11:59 p.m. on September 10, 1990, or 5 :00 p.m. on another election day mutually agreed to by the City Clerk, as election official, and the landowners. In accordance with Sections 53326(d) and 53351(j) of the Government Code, the election shall be closed and the results certified by the City Clerk as election official as soon as all qualified electors have voted. Section 14. If two - thirds (2/3) of the votes cast upon the question of levying such special tax and establishing such appropriations limit are cast in favor of levying such special tax and establishing such appropriations, as determined by the City Council after the canvass of the returns of such consolidated election, the City Council may levy such special tax within the territory of the Community Facilities District under the Act in the amount and for the purposes as specified in this resolution, and such appropriations limit shall be established for the Community Facilities District, as defined by Article XIII B, Section 8(h) of the Constitution of the State of California. Such special tax may be levied only at the rate and may be apportioned only in the manner specified in this resolution, subject to the Act, except that special tax may be levied at a rate lower than that specified herein and the maximum annual tax rate may be lowered. Such special tax may be levied so long as it is needed to pay for the acquisition, construction, rehabilitation and installation of the Facilities, or so long as it is needed to pay the principal of and interest on the bonded indebtedness or other indebtedness incurred in order to construct the Facilities (including the repayment of funds advanced for the District). Section 15. Community Facilities District shall constitute a single election precinct for the purpose of holding the election. Section 16. The preparation of the Report is hereby ratified. The Report, as submitted, is hereby approved and is made a part of the record of the public hearing regarding the formation of the Community Facilities District, and is ordered to be kept on file with the transcript of these proceedings and open for public inspection. Section 17. The City Clerk shall certify the adoption of this Resolution. CYP1 -RES6 -5- PASSED AND ADOPTED by the City Council of the City of Cypress at a regular meeting held on the 10th day of September, 1990. k(Mayor Pro Tem) OF YPR MAYOR O HE C ITY YPRESS ATTEST: CIii CLE 0 4 ATY OF CYPRESS STATE OF CALIFORNIA COUNTY OF ORANGE ss ) I, DARRELL ESSEX, City Clerk of the City of Cypress, DO HEREBY CERTIFY that the foregoing Resolution was duly adopted at a regular meeting of the said City Council held on the 10th day of September, 1990, by the following roll call vote: AYES: NOES: 4 COUNCIL MEMBERS: Arnold, Bowman, Kanel and Kerry 0 COUNCIL MEMBERS: None ABSENT: 1 COUNCIL MEMBERS: Age ABSTAINED: 0 COUNCIL MEMBERS: None CI OF THE -C`ITY OF CYPRESS LERK EXHIBIT A COMMUNITY FACILITIES DISTRICT REPORT COMMUNITY FACILITIES DISTRICT NO. 1 (Sorrento Homes) City of Cypress DESCRIPTION OF FACIITTIES The Facilities proposed to be financed by the District consist of infrastructure and rehabilitation of school facilities required for development of the area. These are area-wide improvements which are required to permit development consistent with a residential land use. Based on current City service requirements, the following series of backbone improvements have been identified. The District will fund construction, installation and rehabilitation of the following items together with appurtenances and appurtenant work: Parkway Landscaping Includes soil preparation, finish grading, automatic irrigation, sodded turf, and ground covers (rooted cuttings, shrubs and vines, and trees) for perimeter streets, the on-site collector street, and entry monumentation. On-Site Street Includes curb and gutter, local depression, sidewalk, drive approach, access ramp, grading, asphalt concrete, aggregate base, and street signs for all interior streets, including internal collector street. Includes new traffic signalization for Ball Road at Sorrento Drive and Moody Street at Sorrento Drive and modifications of existing traffic signals at Ball Road /Moody Street, Orange Avenue /Moody Street and Ball Road/Denni Street required for development of the area. Sewer System Includes vitrified clay pipe main lines and laterals and manholes in all on -site streets. Storm Drain System Includes RCP main lines and laterals, junction structures, manholes and catch basins in all on -site streets. School Facilities Fees Anaheim High School District fees are to be used for rehabilitation of school facilities. Incidentals and Fees Drainage fees, design and engineering, along with the costs necessary to form the District and sell bonds. This description of the public capital facilities is general in nature. The final nature and location of improvements and facilities will be determined upon the preparation of final plans and specifications. The final plans and specifications may show substitutes in lieu of, or modifications to, proposed work. Any such substitution shall not be a change or modification in the proceedings as long as the facilities provide a service substantially similar to that as set forth in this Report. EXHIBIT B COMMUNITY FACILITIES DISTRICT REPORT COMMUNITY FACILITIES DISTRICT NO. 1 (Sorrento Homes) City of Cypress MELLO -ROOS COMMUNITY FACILITIES ACT OF 1982 RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX Introduction The special tax to be levied upon each assessor's parcel in Community Facilities District No. 1 (Sorrento Homes) ( "CFD" or "District") of the City of Cypress shall be levied by the District by application of the appropriate rate as described below. All of the property in the CFD, unless exempt by law or by the provisions herein, shall be taxed for the purposes, to the extent, and in the manner herein provided. This Exhibit D conforms to the Rate and Method of Apportionment of Special Tax contained in the Resolution of Intention adopted by the City Council and the ballot to be voted on by the landowner, however, in the event of discrepancies between this Exhibit D and Resolutions or the ballot, the resolutions and /or ballot will control. Definitioas The terms used in this Exhibit have the following meaning: "Acre" or "Acreage" The area of a parcel as shown on an assessor parcel map, a recorded tract or Parcel Map, or other recorded map, or as determined by the City Engineer. "Alternate Maximum Special Tax Rate" A tax that may be levied against the area of a parcel in the event that the maximum special tax for developed and undeveloped property is insufficient. 25 4 "Amount of Annual Levy" The amount necessary to pay interest and principal of the bonds, replenish bond reserves, and to fund incidental and /or administrative expenses previously incurred or estimated to be incurred in the current Fiscal Year. The administrative expenses shall not exceed 520,000 a year escalating 3% each year beginning Fiscal Year 1992 -93. The amount of the above shall be reduced by any bond reserve earnings except those earnings that may be required for rebate purposes. "Bond Year" The period beginning the day after a bond principal payment date and ending with the following bond principal payment date. "Developed Property" Assessor Parcels in the CFD for which a subdivision map has been recorded prior to March 1 of the preceding Fiscal Year for sale of residential or non- residential lots. "Exempt Property" Parcels shown on the Vesting Tentative Tract Map 13228, that meet, or upon final recordation will meet, one of the following conditions are exempt from the annual levy of the special tax. 1. Property owned by a public agency or which is in public use (such as streets, sewer easements, etc.) 2. Property which is an unmanned utility property 3. Property irrevocably dedicated to a public agency for a public use 4. Property designated as park or as open space S. Other property which has no intrinsic value upon foreclosure, such as sliver parcels at entries, monuments, landscaped parcels on a perimeter, etc. 6. Property exempt by operation of law. "Fiscal Year" The period starting July 1 and ending the following June 30. Tull Development" Occurs when the last subdivision or parcel map is recorded to allow construction of 671 units (or such adjusted number of units allowed by the City of Cypress) within the CFD. "Maximum Special Tax Rote" The maximum tax rate that may be levied by the District in any Fiscal Year for each class of Developed Property and Undeveloped Property. "SFR" A single family residence which is not attached to another residential unit. "Taxable Property" All property within the CFD which is not Exempt Property. Undeveloped Property" All property within the CFD not classified as Developed Property or Exempt Property. "Zone A Lot" A lot designated in the Sorrento Specific Plan and the Vesting Tentative Tract Map 13228 as a minimum 5,000 square foot lot and shown on the District Boundary Map as a part of Zone A. "Zone B Lot" A lot designated in the Sorrento Specific Plan and the Vesting Tentative Tract Map 13228 as a minimum 6,000 square foot lot and shown on the District Boundary Map as part of Zone B. Maximum Special Tax Rate Undeveloped Property The Maximum Special Tax Rate for Undeveloped Property shall be S20,000 per Acre per year as shown in Table 1. 3 256 Developed Property The Maximum Special Tax Rate for Developed Property shall be the Maximum Special Tax Rate as shown in Table 1 or, if the conditions of paragraph 4, under Method of Apportionment of Special Tax apply, Alternate Maximum Special Tax Rate of $0.4302 per parcel square foot. See the Method of Apportionment of Special Tax for further detail. Table 1 Maximum Special Tax Rate Maximum Special Categpry Classification Tax Rate 0 Undeveloped per Acre $20,000 1 Developed per Zone A Lot 2,151 2 Developed per Zone B Lot 2,581 3 Exempt 0 Method of Apportionment of Special Tax The District will determine the Amount of Annual Levy for the Fiscal Year to be collected from Taxable Property in the CFD for that Fiscal Year. Such determination will begin with the Fiscal Year following District formation. The District will levy the special tax as follows: 1. All property will be classified as Developed Property, Undeveloped Property, or Exempt according to the categories listed on Table 1 as of March 1 of the preceding fiscal year. 2. The special tax shall be levied on each parcel of Developed Property at the Maximum Special Tax Rate for Developed Property from Table 1. 257 3. The total of 2. shall be subtracted from the Amount of Annual Levy: a. if the Amount of Annual Levy is less than the total of 2., then the special tax on Developed Property shall be reduced, pro rata, to the Amount of Annual Levy. b. if the Amount of Annual Levy is more than the total of 2., then the special tax shall be levied upon Undeveloped Property pro rata on an Acreage basis, to the extent necessary, when added to the total of 2. to equal the Amount of Annual Levy, but not to exceed the Maximum Special Tax Rate for Undeveloped Property. 4. If the Maximum Special Tax Rates for Developed Property and Undeveloped Property, when applied, produce an amount less than the Amount of Annual Levy, then the Alternate Maximum Special Tax Rate shall be used in the manner described below. a. Determine the Alternate Maximum Special Tax for each parcel of Developed and Undeveloped Property by multiplying the parcels' square feet by the Alternate Maximum Special Tax Rate of $0.4302 per parcel square foot. b. Compare the sum of the Alternate Maximum Special Tax from a., to the Amount of Annual Levy. If the Alternate Maximum Special Tax is greater than the Amount of Annual Levy, reduce the Alternate Maximum Special Tax per parcel, pro rata, on a parcel square footage basis, but not lower than the Maximum Special Tax Rates shown in Table 1. Pischarge of Special Tax Obligation Any owner of property subject to the special tax may discharge the special tax obligation in full, partial discharge is not permitted, by making payment as follows: 1. Prior to Full Development of all parcels within the CFD: a. _ Compute the present value of the remaining payments of special tax at the average coupon rate of the outstanding bonds using the Maximum Special Tax Rate for the parcel; ^5C b. To the result of a. add; i) call premium as required in the bond instrument; interest on a. at the applicable bond rate for each year, if any, to the next bond call date; iii) unpaid special taxes which have been entered on the assessor's roll; iv) a S250 administrative fee; and v) subtract the parcel's pro rata share of the bond reserve fund. c. To the result of a. and b. subtract the interest earnings to be generated at the reinvestment rate as determined by the District and from the discharge date to the next bond call date. 2. After Full Development of all parcels within the CFD: a. Divide the special tax of the parcel for the first Fiscal Year, for which the special tax obligation is to be discharged, by the total special tax for all parcels for the Fiscal Year. b. Multiply the bond principal to be outstanding at the end of the current bond year, by the quotient obtained in a. c. To the result of b. add; i) call premium as required in the bond instrument; ii) interest on b. at the applicable bond rate for each year, if any, to the next bond call date; iii) unpaid special taxes which have been entered on the assessor's roll; iv) a $250 administrative fee; and v) subtract the parcel's pro rata share of the bond reserve fund. d. To the result of b. and c., subtract the interest earnings to be generated at the reinvestment rate as determined by the District and from the discharge date to the next bond call date. Manner of Collection The special tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that the special tax may be collected at a different time or in a different manner if necessary to meet its financial obligations. The special tax shall be subject to the same penalties and procedures, sale and lien priority in 259 case of delinquency as is provided for ad valorem taxes. In the event of a delinquency, the District will pursue foreclosure in a timely manner. Review /Appeal Council The District shall establish as part of its proceedings and administration of the special tax a three- member Review /Appeal Council which shall consist of those persons currently holding the positions of City Manager, Finance Director, and Director of Planning for the City of Cypress. Any owner subject to the special tax who desires to protest the accuracy of the amount of the special tax imposed on the owner's parcel may We a notice with the Review /Appeal Council, appealing the amount of the special tax assigned to such parcel. The Review /Appeal Council shall make determinations relative to the annual administration of the special tax pursuant to this Rate and Method of Apportionment of the Special Tax and of any owner appeals hereunder, as herein specified and shall perform the duties specified in Sec. 533402 Gov., C.A., as amended. The annual roll of special tax levy obligations shall be presented to the District and placed on the Consent Calendar of the appropriate meeting for action by the District's governing body. Any owner of property subject to the lien of the special tax may appeal the determination of the Review /Appeal' Council to the District's governing body. 60 EXHIBIT C OFFICIAL BALLOT COMMUNITY FACILITIES DISTRICT NO. 1 (SORRENTO HOMES) OF THE CITY OF CYPRESS SPECIAL BOND AND SPECIAL TAX ELECTION September 10, 1990 This ballot represents votes. To vote, stamp a cross ( +) in the voting square after the word "YES" or after the word "NO ". All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void. If you wrongly mark, tear, or deface this ballot, return it to the City Clerk as the election official and obtain another. PROPOSITION NO. A: Shall Community Facilities District No. 1 (Sorrento Homes) of the City of Cypress incur an indebtedness and issue bonds in a maximum aggregate amount not to exceed $15,500,000, with interest at a rate or rates not to exceed the maximum interest rate permitted by law, the proceeds of which will be used to finance certain public facilities including the funding, financing, construction, rehabilitation or installation of streets and highways, drainage facilities, sewer facilities, traffic and safety lighting facilities, parkway landscaping improvements and school facilities together with appurtenances and appurtenant work, including equipment, real property and other tangible property (the "Facilities "), as provided in Resolution No. of the City Council of the City of Cypress (the "Resolution of Formation "), and shall a special tax with a rate and method of apportionment as provided in the Resolution of Formation be levied to pay for all or a portion of the Facilities described in the Resolution of Formation, for the creation or replenishment of any necessary reserve funds, for any incidental expenses of the District associated with the Facilities or the bonds and for principal of, premium, if any, and interest on such bonds? PROPOSITION NO. B: Shall the appropri- ations limit, as defined by subdivision (h) of Section 8 of Article XXXI B of the California Constitution, for the Community Facilities District No. 1 (Sorrento Homes) of City of Cypress be an amount equal to $15,500,000. C -1- YES NO YES NO