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Section 3. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: (a) That the canvas of votes cast by the property owners is completed and has been certified by the Clerk of the Council, and the votes cast were as set forth in Exhibit B to this Resolution, attached hereto and made a part hereof by this reference. (b) As determined by the ballots cast as weighted according to the amount of assessment owed by each parcel, a majority of the property owners voted in favor the proposed assessment. No ballots were considered from property owners within the Excluded Territory. Section 4. The City Council heard and considered all objections or protests to the proposed assessments and tabulated the assessment ballots submitted, and not withdrawn, in support of or opposition to the proposed assessments. The City Council hereby finds that a majority protest does not exist as defined in Section 4(e) of Article XIIID of the California Constitution and Section 53753 of the California Government Code. All objections or protests, both written and oral, are hereby duly overruled. Section 5. Pursuant to the Act, the Downtown Santa Ana Community Management District (the "Downtown CMD") is hereby established. The City Council hereby finds that the properties within the Downtown CMD will be benefited by the improvements and activities funded by the assessment to be levied. Section 6. Levy of the Assessment. (a) Except where funds are otherwise available, an assessment will be levied annually to pay for all the improvements and activities to be provided within the Downtown CMD, commencing with fiscal year 2008-09 and ending with fiscal year 2012-13. For purposes of levying and collecting assessments within the Downtown CMD, a fiscal year shall commence on each July 1st and end on the following June 30th. (b) The total amount of the proposed assessment to be levied and collected for fiscal year 2008-09 shall be approximately $920,000, based on the maximum assessment rates described in the Management District Plan. Said assessment and rates shall continue for each of the succeeding four fiscal years and may increase by the maximum rate set forth in the Management District Plan. Increases in building area due to new construction may also cause an increase in the total assessment for a parcel in any given year. (c) The method and basis of levying the assessment shall be as set forth in the Management District Plan. Section 7. There is created a special fund designated as the "Downtown Santa Ana Community Management District Fund" into which all revenue derived from assessments levied pursuant to this Resolution shall be placed, and such funds shall be Resolution No. 2008-XXX 55A-5 Page 3 of 7