Reso Callng Electn Fontana CFD 7 (Cntry Clb)

ORDINANCE NO. 808

AN ORDINANCE OF THE COUNTY OF RIVERSIDE AUTHORIZING THE A LEVY OF A SPECIAL TAX WITHIN IMPROVEMENT AREA NO. 1 OF COMMUNITY FACILITITES DISTRICT NO. 89-1 OF THE COUNTY OF RIVERSIDE

WHEREAS, on October 24, 2000, the Board of Supervisors of the County of Riverside, California (the "County"), acting ex officio as the Legislative Body (the "Legislative Body") of Community Facilities District No. 89-1 of the County of Riverside ("Community Facilities District No. 89-1"), pursuant to the Mello-Roos Community Facilities Act of 1982 (the "Act"), commencing with Section 53311 of the California Government Code (the "Code"), adopted Resolution No. CFD 2000-07 (the "Resolution of Intention") calling for a public hearing to be held on November 8, 2000, to consider the proposed designation of Improvement Area No. 1 of Community Facilities District No. 89-1 of the County of Riverside (the "Improvement Area"), the proposed authorization to levy special taxes, the rate and method for apportioning said special taxes, as attached to the Resolution of Intention is attached hereto, marked as Exhibit A and by this reference is incorporated herein (the "Rate and Method"), within the Improvement Area to pay for certain public facilities for the Improvement Area;

WHEREAS, on October 24, 2000, the Legislative Body also adopted Resolution No. CFD 2000-08 (the "Resolution to Incur Bonded Indebtedness"), calling for a public hearing to be held on November 28, 2000, to consider the proposed issuance of debt in an amount not to exceed $15,000,000 for the Improvement Area in accordance with the Resolution to Incur Bonded Indebtedness;

WHEREAS, the Legislative Body held such noticed public hearings on November 28, 2000, as required by the Act;

WHEREAS, subsequent to the hearings, the Legislative Body adopted Resolution No. CFD 2000-11, designating the Improvement Area;

WHEREAS, subsequent to the hearings, the Legislative Body also adopted Resolution No. CFD 2000-12, deeming it necessary to incur bonded indebtedness in the maximum amount of $15,000,000;

WHEREAS, subsequent to the hearings, the Legislative Body adopted Resolution No. CFD 2000-13 (the "Resolution Calling Election"), calling an election within the Improvement Area for December 12, 2000, on the proposed authorization to levy special taxes within the Improvement Area in order to finance the Facilities and the proposed debt issuance (collectively, the "Propositions");

WHEREAS, pursuant to the terms of the Resolution Calling Election and the provisions of the Act, the improvement area proceedings and special tax election was held on December 12, 2000;

WHEREAS, the Propositions were approved by more than two-thirds (2/3) of the votes cast at the election held on December 12, 2000;

NOW, THEREFORE, The Board of Supervisors of the County of Riverside ORDAINS as follows:

Section 1. The above recitals are all true and correct and this board so finds and determines.

Section 2. By the passage of this Ordinance, the Board hereby authorizes and levies special taxes within the Improvement Area pursuant to Sections 53328 and 53340 of the Code, at the rate and in accordance with the Rate and Method. The special taxes are hereby levied commencing in fiscal year 2001-02 and in each fiscal year thereafter for the period necessary to satisfy the special tax requirement as defined in the Rate and Method.

Section 3. The Board, acting as the Legislative Body of Community Facilities District No. 89-1, is hereby authorized and directed each fiscal year to determine, or cause to be determined, the specific special tax rate and amount to be levied for the next ensuing fiscal year for each parcel of real property within the Improvement Area, in the manner and as provided in the Rate and Method.

Section 4. Properties or entities of the state, federal or other local governments shall be exempt from any levy of the special taxes, to the extent set forth in the Rate and Method. In no event shall the special taxes be levied on any parcel within the Improvement Area in excess of the maximum tax specified in the Rate and Method.

Section 5. All of the collections of the special tax shall be used as provided for in the Act, the Rate and Method and the Resolution of Formation, to pay, in whole or in part, the costs of providing public facilities and incidental expenses pursuant to the Act.

Section 6. The special taxes shall be collected from time to time as necessary to meet the financial obligations of Community Facilities District No. 89-1 on the secured real property tax roll in the same manner as ordinary ad valorem taxes are collected, or may be collected in such other manner as set forth in the Rate and Method. The special taxes shall have the same lien priority, and shall be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem taxes. In addition, the provisions of Section 53356.1 of the Code shall apply to delinquent special tax payments. The Board, acting as the Legislative Body of Community Facilities District No. 89-1, is hereby authorized and directed to take all actions necessary in order to effect the proper billing and collection of the special tax, so that the special tax shall be levied and collected in sufficient amounts and at the times necessary to satisfy the financial obligations of Community Facilities District No. 89-1 in each fiscal year.

Notwithstanding the foregoing, the Board, acting as the Legislative Body of Community Facilities District No. 89-1, may collect, or cause to be collected, one or more installments of the special taxes by means of direct billing by Community Facilities District No. 89-1 of the property owners within the Improvement Area if, in the judgment of the Legislative Body such means of collection will reduce the burden of administering Community Facilities District No. 89-1 or is otherwise appropriate in the circumstances. In such event, the special taxes shall become delinquent if not paid when due as set forth in any such respective billing to the property owners.

Section 7. If for any reason any portion of this Ordinance is found to be invalid, or if the special tax is found inapplicable to any particular parcel within the Improvement Area, by a court of competent jurisdiction, the balance of this Ordinance and the application of the special tax to the remaining parcels within the Improvement Area shall not be affected.

Section 8. The Chairman of the Board of Supervisors shall sign this Ordinance and the Clerk of the Board of Supervisors shall attest to the Chairman’s signature and then cause the same to be published within fifteen (15) days after its passage at least once in The Press-Enterprise, a newspaper of general circulation published and circulated in the area of Community Facilities District No. 89-1 and the Improvement Area.

Section 9. This Ordinance relating to levy and collection of special taxes in Improvement Area No. 1 of Community Facilities District No. 89-1 of the County of Riverside shall take effect immediately upon its passage in accordance with the provisions of Section 25123(c) of the California government Code, and the specific authorization for adoption is pursuant to the provisions of Section 53340 of the Government Code.

Adopted: 1/9/2001 - 3.7 (Effective:Immediately)

(FOLLOWING IS EXHIBIT "A" TO ORD. 808)

EXHIBIT A

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR IMPROVEMENT

AREA NO. 1 OF COMMUNITY FACILITIES DISTRICT NO. 89-1 (MOUNTAIN COVE)

COUNTY OF RIVERSIDE

A Special Tax (all capitalized terms are defined in Section A. Definitions below), shall be applicable to each Parcel of Taxable Property located within the boundaries of Improvement Area No. 1 of Community Facilities District No. 89-1. The amount of Special Tax to be levied for a Parcel shall be determined by the Administrator, acting in its capacity as the legislative body of CFD No. 89-1, by applying the appropriate tax rates as set forth in Sections B, C and D below for Taxable Property. All of the property in Improvement Area No. 1 of CFD No. 89-1, unless exempted by law or by the provisions of Section E below, shall be taxed for the purposes, to the extent and in the manner, herein provided.

A. DEFINITIONS

"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, comprising Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.

"Administrative Expenses" means all actual or reasonably estimated costs and expenses of the County to carry out its duties as the administrator of Improvement Area No. 1, as allowed by the Act, which shall include, without limitation, (1) all costs and expenses arising out of or resulting from the levy and collection of the Special Tax, (2) costs of credit enhancement for the Bonds, (3) costs associated with the marketing or remarketing of the Bonds, (4) any litigation involving Improvement Area No. 1, communication with bondholders and normal administrative expenses.

"Administrator" means the County Executive Officer of the County of Riverside, or his/her designee.

"Board" means the legislative body of the County.

"Bond(s)" means principal amount of bonded indebtedness of CFD No. 89-1 secured by the Special Tax of Improvement Area No. 1.

"Certificate of Occupancy" means a document issued by the County or a city, which permits the initial habitation of a newly constructed residential dwelling unit, or initial use of a newly constructed non-residential structure.

"CFD No. 89-1" means Community Facilities District No. 89-1 (Mountain Cove) of the County established pursuant to the Act by adoption of Resolution No. 89-198 by the Board.

"County" means the County of Riverside of the State of California.

"Exempt Property" means any Parcel or portion of a Parcel, which is exempt from Special Taxes pursuant to Section E below.

"Golf Course Property" means all Parcels that are designated as golf course property as specified on a parcel map and generally specified in the Specific Plan.

"Improvement Area No. 1" means Improvement Area No. 1 of CFD No. 89-1 of the County established pursuant to the Act by adoption of Resolution No. _____ of the Board.

"Indenture" means the documents pursuant to which the Bonds are issued.

"Maximum Special Tax" means the highest Special Tax that can be levied on a Parcel in any Fiscal Year in accordance with Section C.

"Parcel(s)" means individual lots or parcels created by a map approved by the County pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.)

"Planning Area" means a geographical area that has been designated as a planning area in the Specific Plan.

"Principal Prepayment" means the principal amount of the Bonds to be paid or redeemed with the proceeds of a prepayment of Special Taxes.

"Property Owner’s Association Property" means any Parcel, which has been conveyed, dedicated to, or irrevocably dedicated to a property owner association, including any master or sub-association.

"Proportionately" means, with respect to the Parcels of Taxable Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels within such Taxable Property.

"Public Property" means any Parcel or portion of an Parcel within the boundaries of Improvement Area No. 1 that is used for rights-of-way or any other purpose and is owned by, dedicated to, or irrevocably offered for dedication to the federal government, the State of California, the County, a city, or any other public agency, provided however, that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with its use.

"Special Tax(es)" means the special tax to be levied, in each Fiscal Year, on each Parcel of Taxable Property, pursuant to Sections B, C, and D below, to fund the Special Tax Requirement.

"Special Tax Requirement" means that amount required in any month to pay: (1) principal of and interest coming due on all outstanding Bonds of Improvement Area No. 1, (2) Administrative Expenses attributable to the Bonds and the levy and collection of the Special Taxes, (3) costs of credit enhancement for the Bonds, (4) amount needed to replenish the reserve fund for the Bonds, (5) any amount required to be rebated the United States of America with respect to the Bonds, less a credit for funds already on deposit in the funds established under the Indenture and available to reduce the Special Tax Requirement, as determined by the Administrator pursuant to the Indenture.

"Specific Plan" means the Specific Plan No. 221 dated as of May 23,2000, or as subsequently modified, supplemented or amended.

"Taxable Property" means all Parcels in Improvement Area No. 1, which are not exempt from the levy of Special Taxes pursuant to the Act or Section E below.

B. ASSIGNMENT TO LAND USE CLASS

All Parcels within Improvement Area No. 1 shall be classified either as Taxable Property or Exempt Property.

C. MAXIMUM SPECIAL TAX

The Maximum Special Tax for any month for all Taxable Property, collectively, is:

The then outstanding principal amount of Bonds plus 65 days of interest at 12% plus Administrative Expenses.

The Maximum Special Tax for any month for each Parcel of Taxable Property is such Parcels’ Proportionate share, based on acreage, of the Maximum Special Tax for such month for all Taxable Property.

The Maximum Special Tax for each Parcel that is prepaid shall be reduced to zero.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX

The Administrator shall determine the amount of Special Taxes to be levied in order to satisfy the Special Tax Requirement for each month. The Administrator shall levy the Special Taxes in each month Proportionately on each Parcel of Taxable Property until it has levied the amount necessary to satisfy the Special Tax Requirement for said month.

E. EXEMPTIONS

The Special Tax shall not be imposed upon any of the following:

1) Public Property, except as otherwise provided in Section 53317.3 of the Government Code.

(2) Property Owner’s Association Property.

(3) All Parcels located in Planning Areas 2 and 17 (open space), 18 (non-residential), 9 and 9A (Golf Course Property), 9B and 16 (Property Owner’s Association Property), and 15 (non-conforming property) as identified in the Specific Plan. If such property is not used as designated by the Specific Plan it shall be subject to the levy of Special Tax.

F. MANNER OF COLLECTION, PENALTIES, PROCEDURE AND LIEN PRIORITY

The Special Tax shall be directly billed to the owner(s) of Taxable Property and may be collected at a different time than ad valorem property taxes at the discretion of the Administrator.

The Special Tax shall be subject to the same penalties and the same procedure, sale and lien priority in the case of delinquency as is provided for ad valorem taxes.

G. PREPAYMENT OF SPECIAL TAX

Mandatory Prepayment

No Special Tax shall be levied after a prepayment is made in accordance with this section. As a condition for the issuance of a Certificate of Occupancy for any structure built on a Parcel, the Special Tax on such Parcel must be prepaid pursuant to the provisions in this Section. An owner of a Parcel intending to prepay its Special Tax obligation shall provide the Administrator with a written notice of intent to prepay, together with a certification as to the project unit count then projected to be developed, as provided in Attachment A, and, within 10 business days of receipt of such notice, the Administrator shall provide the Special Tax prepayment amount and the earliest date on which Bonds may be redeemed pursuant to the Indenture, which date shall be the effective date of the prepayment. The Administrator shall calculate the prepayment amount in multiples of $5,000, and shall adjust the prepayment amount, if necessary, for any accumulated excess prepayments made pursuant to this Section as a result of prepayment amounts being rounded up to the next greatest multiple of $5,000. The owner of such Parcel shall pay all Special Taxes levied that become due and payable on or before the effective date of such prepayment, and, if any of such Special Taxes are not so paid, such prepayment shall not be effective. The Owner of such Parcel shall provide for the payment of the Special Tax prepayment amount to the Administrator at least 5 days prior to the effective date of the prepayment. The Special Tax prepayment amount will equal the prorata share of the sum of the amounts calculated under paragraphs below:

1. Applicable Bond Principal Prepayment amount:

The Principal Prepayment amount shall equal the original principal amount of Bonds divided by the initial project unit count of 1,255. If the Administrator has received certification that the projected project unit count to be developed is less than 1,255, the Administrator shall from the date of said certification adjust the Principal Prepayment amount to reflect the change in development.

2. Compute the applicable Administrative Expenses:

Compute the amount of any Administrative Expenses relating to the prepayment as determined by the Administrator, including, but not limited to, the costs of computing and verifying the amount of the prepayment, the costs of redeeming the Bonds and the costs of recording any notices to evidence the prepayment of the Special Tax and the redemption of Bonds.

Optional Prepayment

The Special Tax on a Parcel may be prepaid in whole pursuant to the provision of this Section. An owner of a Parcel intending to prepay its Special Tax obligation shall provide the Administrator with a written notice of intent to prepay, together with a certification as to the project unit count then projected to be developed, as provided in Attachment A, and, within 10 business days of receipt of such notice, the Administrator shall provide the Special Tax prepayment amount and the earliest date on which Bonds may be redeemed pursuant to the Indenture, which date shall be the effective date of the prepayment. The Administrator shall calculate the prepayment amount in multiples of $5,000, and shall adjust the prepayment amount, if necessary, for any accumulated excess prepayments made pursuant to this Section as a result of prepayment amounts being rounded up to the next greatest multiple of $5,000. The owner of such Parcel shall pay all Special Taxes levied that become due and payable on or before the effective date of such prepayment, and, if any of such Special Taxes are not so paid, such prepayment shall not be effective. The Owner of such Parcel shall provide for the payment of the Special Tax prepayment amount to the Administrator at least 5 days prior to the effective date of the prepayment. The Special Tax prepayment amount will equal the sum of the amounts calculated under paragraphs below:

1. Applicable Bond Principal Prepayment amount:

2. Compute the applicable Administrative Expenses:

H. Term of Special Tax

Special Taxes shall be levied for the period necessary to satisfy the Special Tax Requirement.