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dta <br />�.FinanceDTA.com <br />SECTION IV <br />SCOPE OF WORK <br />In managing CFDs, DTA recognizes that every jurisdiction and financing program is different <br />and that it is important for a Special Tax Consultant to consider a multitude of factors intended <br />to protect a public agency from the vagaries of the economy, future development patterns, the <br />bond market, and any contingencies that may occur. DTA's unmatched experience in the <br />formation and implementation of hundreds of successful CFDs over the past 38 years has <br />enabled our firm to anticipate problems before they occur, thereby ensuring that our tax <br />formulas can adapt to virtually any future situation. <br />DTA shall undertake this Scope of Work to provide the special tax consulting services requested <br />to meet the City's objectives for this engagement: <br />Task 1— Kickoff Meeting/Conference Call <br />DTA will attend an initial meeting or conference call with City staff to discuss the Scope of Work <br />and proposed schedule and identify any other issues prior to beginning work. <br />Task 2 — Background Research <br />DTA will review available planning, engineering, development absorption, and financial information <br />regarding the future development within the Project. All information shall be provided by the City <br />and/or its consultants. DTA shall base its analysis on data received from these sources and shall <br />not conduct any independent research to verify the accuracy of such data. <br />Task 3 — Property Tax Research <br />DTA shall request a preliminary Title Report, Assessor Parcel Number ("APN" ), and/or property tax <br />bills from the project's representatives in order to identify the existing property tax rate, special taxes, <br />and assessments. DTA shall contact the related taxing entities and service providers, as appropriate, <br />to determine projected and maximum rates and the method of assessment. DTA shall utilize this <br />information to identify the base property tax rate for the purposes of modeling the projected total <br />effective tax rate. <br />Task 4 — Public Facilities Eligibility, Phasing, and Reimbursement <br />DTA shall review public improvements and fees proposed to be financed. We will also evaluate <br />eligibility under the Mello -Roos Community Facilities Act of 1982, the City's policy guidelines, and <br />any Development Agreements. <br />Task 5 — Preliminary Tax Spread Analysis <br />DTA shall prepare a preliminary spread of special taxes (the "Tax Spread") to estimate CFD revenues <br />and expenses. In addition, we will determine supportable annual services costs, bonded <br />indebtedness, and the special tax rates required to fund the desired public infrastructure/services <br />and estimate the total effective property tax rate. The Tax Spread analysis will include the following <br />subtasks: <br />• Effective Tax Rate: We will estimate total effective tax rates for the Project to ensure <br />compliance with the City's approved CFD policies; <br />• Debt Service Coverage: We will estimate aggregate debt service coverage ratios for the <br />bonds and the coverage produced from developed and undeveloped property categories; <br />City of Santa Ana September 8, 2023 <br />Proposal for Consultant Services Related to the Evaluation of an EIFD and a CFD <br />19 <br />