ORDINANCE NO. 827
AN ORDINANCE OF THE
WHEREAS, on March 11, 2003, the Board of Supervisors (the
“Board of Supervisors”) of the County of Riverside (the “County”), pursuant to
the Mello-Roos Community Facilities Act of 1982 (the
“Act”), commencing with Section 53311 of the California Government Code (the
“Government Code”), adopted Resolution No. 2003-110, stating its intention
to establish a community facilities district proposed to be named Community
Facilities District No. 03-1 (Newport Road) of the County of Riverside (the
“District”) and to authorize the levy of special taxes to finance road
facilities and appurtenances and bridge facilities (the “Facilities”) and
setting April 15, 2003 as the date for a public hearing to be held on the
establishment of the District;
WHEREAS, on March 11, 2003, the Board of Supervisors also
adopted Resolution No. 2003-111, calling for a public hearing to be held
on April 15, 2003, to consider the proposed issuance of debt in an amount not
to exceed $20,000,000 for the District;
WHEREAS, the Board of Supervisors held such noticed public
hearing on
WHEREAS, subsequent to the hearings, the Board of Supervisors
adopted Resolution No. 2003-173 (the “Resolution of Formation”),
establishing the District, authorizing the levy of a special tax within the
District to finance the Facilities and establishing an appropriations limit for
the District;
WHEREAS, subsequent to the hearings, the Board of Supervisors
also adopted Resolution No. 2003-174, deeming it necessary to incur bonded
indebtedness in the maximum amount of $20,000,000;
WHEREAS, subsequent to the hearings, the Board of Supervisors
adopted Resolution No. 2003-175 (the “Resolution Calling Election”),
calling a special election for the
District for July 29, 2003 on the proposition to incur bonded indebtedness in a maximum amount of $20,000,000, to levy
a special tax within the District and to establish an appropriations limit for
the District;
WHEREAS,
pursuant to the terms of the Resolution Calling Election and the provisions of
the Act, said special election was held on
WHEREAS, said proposition was approved by more than
two-thirds of the votes cast at said special election; and
WHEREAS,
pursuant to the Act, the Board of Supervisors is the ex officio
legislative body (the “Legislative Body”) of the District;
NOW,
THEREFORE, The Board of Supervisors of
the
Section
1. The above recitals are all true and correct
and the Board of Supervisors so finds and determines.
Section
2. By the passage of this Ordinance, the Board of Supervisors
hereby authorizes and levies special taxes within the District pursuant to
Sections 53328 and 53340 of the Government Code, at the rate and in accordance
with the method of apportionment (the “Rate and Method”) set forth in the
Resolution of Formation and attached as Exhibit A hereto and made a part
hereof. The special taxes are hereby
levied commencing in fiscal year 2004-05 and in each fiscal year thereafter for
the period necessary to satisfy the Special Tax Requirement (as defined in the
Rate and Method), but in no event shall it be levied after fiscal year 2029-30
or the stated maturity of bonds of the District (“Bonds”), whichever is sooner.
Section
3. The Board of Supervisors, acting as the
Legislative Body of the District, 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 District, 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
District 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, including, but not limited to, the payment of
principal of and interest on the Bonds, the payment of the costs of the
Facilities, the replenishment of the reserve fund for the Bonds, the payment of
the costs of administering the District and the costs of collecting and administering
the special tax.
Section
6. The special taxes shall be collected from time to
time as necessary to meet the financial obligations of the District 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 Government Code shall apply to delinquent special
tax payments. The Board of Supervisors,
acting as the Legislative Body of the District, 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 the District in each fiscal year. Notwithstanding the
foregoing, the Board of Supervisors, acting as the Legislative Body of the
District, may collect, or cause to be collected, one or more installments of
the special taxes by means of direct billing by the District of the property
owners within the District if, in the judgment of the Legislative Body, such
means of collection will reduce the burden of administering the District 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 District, by a court of competent
jurisdiction, the balance of this Ordinance and the application of the special
tax to the remaining parcels within the District shall not be affected.
Section
8. The Chairman of the Board of Supervisors shall sign
this Ordinance and the Clerk to the Board of Supervisors shall attest to the
Chairman’s signature and then cause the same to be published within 15 days
after its passage at least once in The Press-Enterprise, a newspaper of
general circulation published and circulated in the area of the District.
Section
9. This Ordinance relating to levy and
collection of special taxes in the District shall take effect immediately upon
its passage in accordance with the provisions of Section 25123(c) of the
Government Code, and the specific authorization for adoption is pursuant to the
provisions of Section 53340 of the Government Code.
Attachment to follow:
Exhibit A:
Rate and Method of Apportionment of Special Tax for CFD No.03-1
(
ADOPTED
827 (3.4)
EXHIBIT A
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 03-1
(
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 Community Facilities District No. 03-1 (Newport Road) of the County. The amount of Special Tax to be levied each Fiscal Year, commencing in Fiscal Year 2004-05 for a Parcel shall be determined by the Legislative Body of the County of Riverside, acting in its capacity as the legislative body of the CFD by applying the appropriate Special Tax for Developed Property, Undeveloped Property, and Public Property and/or Property Owner’s Association Property that is not Exempt Property as set forth in Sections B., C., and D. below. All of the real property within the CFD, unless exempted by law or by the provisions hereof in Section E., shall be taxed for the purposes, to the extent and in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the California Government Code.
“Administrative Expenses” means all actual or reasonably estimated costs and expenses of the County that are chargeable or allocable to carry out its duties as the administrator of the CFD as allowed by the Act, which shall include without limitation, all costs and expenses arising out of or resulting from the annual levy and collection of the Special Tax, Special Tax appeals, foreclosure, trustee fees, rebate compliance calculation fees, any litigation involving the CFD, continuing disclosure undertakings of the County as imposed by applicable laws and regulations, communication with bondholders and normal administrative expenses.
“Administrator” means the
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by an Assessor’s parcel number.
“Assigned Special Tax” means the Special Tax rate set forth in accordance with Section C., below.
“Backup Special Tax” means the Special Tax rate set forth in Section C.1.b., below.
“Bonds” means any bonds or other debt (as defined in the Act) issued by the CFD and secured by the levy of Special Taxes.
“CFD” means Community Facilities District No. 03-1 (
“County” means the
“Developed Property” means (i) with respect to any Parcel of Taxable Property, other than TOPO/GEO Challenged Parcels, each such Parcel created by a Final Map recorded prior to the January 1 preceding the Fiscal Year for which the Special Tax is being levied and (ii) with respect to any TOPO/GEO Challenged Parcel, each such Parcel for which a building permit issued prior to the January 1 preceding the Fiscal Year for which the Special Tax is being levied.
“Exempt Property” means any Parcel which is exempt from Special Taxes pursuant to Section E., below.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code Section 1352 that creates individual Parcels for which building permits may be issued without further subdivision.
“Fiscal Year” means the period starting on July 1 of any calendar
year and ending on June 30 of the following calendar year, commencing
“Indenture” means the bond indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time.
“Initial Assigned Special Tax” means, for each Parcel of Initial Taxable Property, the rate as shown in column 5 of Exhibit A for said Parcel.
“Initial Maximum Special Tax” means, for each Parcel of Initial Taxable Property, the rate as shown in column 6 of Exhibit A for said Parcel.
“Initial Taxable Acres” means for each Parcel of Initial Taxable Property, the number of acres as set forth in column 4 of Exhibit A.
“Initial Taxable Property” means each parcel as listed in column 1 of Exhibit A.
“Land Use Category” means any of the land use categories listed in Table 1, below.
“Legislative Body” means the Board of Supervisor of the County acting ex officio as the Legislative Body of the CFD.
“Maximum Special Tax” means the maximum Special Tax, determined in accordance with Section C., which can be levied in any Fiscal Year on any Parcel.
“Multifamily Property” means any Parcel of Residential Property that consists of a building or buildings comprised of attached residential units that are under common management and are available for rental, but not purchase, by the general public.
"Multiple Land Use Property" means any Developed Property containing more than one Land Use Category
(e.g. one structure containing Non-Residential
Property on the ground floor and Residential Property on the 2nd
floor).
“Non-Residential Floor Area”
means, with regard to Multiple Land Use Property only, all of the square
footage within the perimeter of all structures on a Parcel used in part for
non-residential purposes, measured from outside wall to outside wall, exclusive
of overhangs, porches, patios, carports, or similar spaces attached to the
building but generally open on at least two sides, as determined by reference
to the building permit(s) issued for said Parcel, or if these are not
available, as otherwise determined by the Administrator. Once such determination has been made for a Parcel,
it shall remain fixed in all future Fiscal Years.
“Non-Residential Property” means all Parcels of Developed Property for which a building permit may be issued for any type of non-residential use.
“Parcel” means a lot or parcel shown on an Assessor’s Parcel Map within the boundary of the CFD with an assigned parcel number valid at the time the Special Tax is enrolled for the Fiscal Year for which the Special Tax is being levied.
“Property Owner’s Association Property” means any Parcel which, as of the January 1 preceding the Fiscal Year for which the Special Tax is being levied, is owned by a property owner association, including any master or sub-association.
“Proportionately” means for: (i) Developed Property, that the ratio of the actual Special Tax levy to the Assigned or Backup Special Tax is the same for all Parcels of Developed Property, (ii) Initial Taxable Property, that the ratio of the Assigned or Maximum Special Tax is the same for all Parcels of Initial Taxable Property, (iii) Undeveloped Property, that is not Exempt Property pursuant to Section E., that the ratio of the actual Special Tax levy per taxable Acre to the Assigned or Maximum Special Tax per taxable Acre is the same for all such Property, and (iv) Public Property and/or Property Owners Association Property that is not Exempt Property pursuant to Section E., that the ratio of the actual Special Tax levy per taxable Acre to the Maximum Special Tax per taxable Acre is the same for all such Property.
“Public Property” means, for any Fiscal Year, any Parcel within the boundary of the CFD which, as of the January 1 preceding the Fiscal Year for which the Special Tax is being levied, is owned by, dedicated to, or irrevocably offered for dedication to the federal government, the State of California, the County, or any other public agency, provided, however, that any Parcel 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 according to its use.
“Residential Floor Area” means, with
regard to Multiple Land Use Property only, all of the square footage within the
perimeter of all structures on a Parcel used in part for residential purposes,
not including any carport, walkway, garage, overhang, patio, enclosed patio, or
similar area. The determination of the
amount of Residential Floor Area shall be made by the Administrator with
reference to the building permit(s) issued for said Parcel or, if these are not
available, as otherwise determined by the Administrator. Once such determination has been made for a
Parcel, it shall remain fixed in all future Fiscal Years.
“Residential Property” means all Parcels of Developed Property for which a building permit may be issued for purposes of constructing one or more residential dwelling units.
“Single Family Property” means any Parcel of Residential Property, other than Multifamily Property, for which a building permit may be issued for attached or detached residential units.
“Special Tax” means the special tax to be levied in any Fiscal Year on each Parcel of Taxable Property.
“Special Tax Requirement” means that amount required in any Fiscal Year to pay: (i) annual debt service on all outstanding Bonds due in the calendar year which commences in such Fiscal Year; (ii) periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds; (iii) Administrative Expenses; (iv) an amount equal to any anticipated shortfall due to Special Tax delinquencies in the prior Fiscal Year; and (v) any amounts required to establish or replenish any reserve funds for the Bonds; less (vi) a credit for funds available to reduce the annual Special Tax levy as determined pursuant to the Indenture.
“Taxable Property” means all Parcels in the CFD which are not exempt from the Special Tax pursuant to law or Section E., below.
“TOPO/GEO Challenged Acreage” means, for any Parcel of Initial Taxable Property, the acreage within said Parcel that is identified as being within the TOPO/GEO Challenged Area, as shown in column 3 of Exhibit A for said Parcel.
“TOPO/GEO Challenged Area” means the area within the CFD identified in Exhibit B.
“TOPO/GEO Challenged Parcel” means a Parcel that is wholly within the boundaries of the TOPO/GEO Challenged Area.
“Total Floor Area” means for any Parcel
identified as Multiple Land Use Property pursuant to Section C.1.c., below, the
sum of the Residential Floor Area and Non-Residential Floor Area.
“Undeveloped Property” means all Taxable Property for which (i) a parcel map or lot line adjustment is recorded on one or more Parcel(s) of Initial Taxable Property and (ii) the total taxable Acreage of the resulting Parcel(s) does not equal the taxable Acreage as shown in column 4 of Exhibit A.
B. ASSIGNMENT
TO LAND USE CATEGORIES
At the formation of the CFD, all Parcels shall be considered Initial Taxable Property. Each Fiscal Year in which the Special Tax is levied, all Parcels shall be categorized as either Developed Property, Initial Taxable Property, Undeveloped Property, Public Property or Property Owner’s Association Property, and shall be subject to the levy of Special Taxes in accordance with this Rate and Method of Apportionment as determined pursuant to Sections C. and D., below.
When a parcel map or lot line adjustment is recorded on one or more Parcel(s) of Initial Taxable Property, and if the Administrator determines that the total taxable Acreage of the resulting Parcel(s) equals the taxable Acreage as shown in column 4 of Exhibit A for the initial Parcel(s), then the resulting Parcel(s) shall categorized as Initial Taxable Property. The Administrator shall update Exhibit A to reflect such changes.
When a parcel map or lot line adjustment is recorded on one or more Parcel(s) of Initial Taxable Property, and if the Administrator determines that the total taxable Acreage of the resulting Parcel(s) does not equal the taxable Acreage as shown in column 4 of Exhibit A for the initial Parcel(s), then the resulting Parcel(s) shall be categorized as Undeveloped Property.
When a Final Map records on any Parcel of Initial Taxable Property or Undeveloped Property, the Parcels created by the Final Map, other than TOPO/GEO Challenged Parcels, shall be categorized as Developed Property. Developed Property shall further be classified as Residential Property, Non-Residential Property or Multiple Land Use Property. Residential Property shall further be classified as Single Family Property or Multifamily Property.
C. MAXIMUM
SPECIAL TAX RATE
For any Parcel that has prepaid in full pursuant to Section H.1. below, the Maximum Special Tax for that Parcel shall be
zero.
1. Developed
Property
The Maximum Special Tax for each Parcel of Single Family Property shall be the greater of: (i) the applicable Assigned Special Tax described in Table 1, below, or (ii) the amount derived by application of the Backup Special Tax.
The Maximum Special Tax and the Backup Special Tax for each Parcel of Non-Residential Property and Multifamily Property shall be the Assigned Special Tax described in Table 1, below; however, that for purposes of such calculation, the Acreage of any Parcel shall be reduced by the Acreage of such Parcel within the TOPO/GEO Challenged Area, as determined by the Administrator.
a. Assigned Special Tax
The Assigned Special Tax for each Parcel of Developed Property, except Multiple Land Use Property, is shown in Table 1, below.
TABLE 1
Assigned Special Taxes for Developed Property
|
Land Use Category |
Taxable Parcel/Acre |
Assigned Special Tax Per Parcel/Acre |
|
1 – Single Family Property |
Parcel |
$232 |
|
2. – Multifamily Property |
|
$928 |
|
3 - Non - Residential Property |
|
$928 |
b.
Backup Special Tax
The Backup Special Tax for each Parcel of Single Family Property, other than TOPO/GEO Challenged Parcels that are categorized as Developed Property, created by a specific Final Map shall be determined by multiplying $928 by the total Acreage of Taxable Property within said Final Map, excluding the Acreage associated with Multifamily Property, Multiple Land Use Property, Non-Residential Property, Public Property and/or Property Owner’s Association Property that is not Exempt Property pursuant to Section E. below, and the Acreage, if any, within the TOPO/GEO Challenged Area within such Final Map, and dividing such amount by the number of Parcels of Single Family Property within the specific Final Map.
Notwithstanding the foregoing, if the number of Parcels of Single Family Property in a specific Final Map is subsequently changed or modified by recordation of a lot line adjustment or similar instrument, then the Backup Special Tax will be recalculated for the Parcels within said Final Map.
The Backup Special Tax for each TOPO/GEO Challenged Parcel that is categorized as Developed Property shall be $232.
c. Multiple Land Use Property
In some instances a Parcel of Developed Property may contain more than one Land Use Category. The Assigned Special Tax levied on such a Parcel shall be the sum of the Assigned Special Tax levies for all Land Use Categories located on that Parcel. The Backup Special Tax levied on a Parcel shall be the sum of the Backup Special Tax levies that can be imposed on all Land Use Categories located on that Parcel. The Maximum Special Tax levied on a Parcel shall be the sum of the Maximum Special Tax levies that can be imposed on all Land Use Categories located on that Parcel.
For purposes of calculating the Backup Special Tax (but not the Assigned Special Tax) for each Land Use Category under such circumstances, the Acreage assigned to each Land Use Category shall be based on the proportion of Residential Floor Area or Non-Residential Floor Area that is built for each Land Use Category as compared with the Total Floor Area built on the Parcel. The Administrator shall determine all allocations made under this section, and all such allocations shall be final.
- Initial
Taxable Property
a. Assigned Special Tax
The Assigned Special Tax for each Parcel of Initial Taxable Property shall be $705 per Initial Taxable Acre as described in Exhibit A.
b.
Maximum Special Tax
The Maximum Special Tax for each Parcel of Initial Taxable Property shall be $928 per Initial Taxable Acre as described in Exhibit A.
- Undeveloped
Property
a. Assigned Special Tax
The Assigned Special Tax for each Parcel of
Undeveloped Property shall be $705 per
b. Maximum
Special Tax
The Maximum Special Tax for each Parcel of
Undeveloped Property shall be $928 per
4. Public
Property and/or Property Owner’s Association Property that is not Exempt
Property pursuant to the provisions of Section E.
The Maximum Special Tax for each Parcel, or portion thereof, of Public Property and/or Property Owner’s Association Property that is not Exempt Property pursuant to the provisions of Section E., shall be $928 per Acre; provided, however, that for purposes of such calculation, the Acreage of any Parcel shall be reduced by the Acreage of such Parcel within the TOPO/GEO Challenged Area, as determined by the Administrator.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2004-05 and for each following Fiscal Year, the Legislative Body shall levy the Special Tax on all Taxable Property until the amount of Special Taxes equals the Special Tax Requirement in accordance with the following steps:
First: The Special Tax shall be levied Proportionately on each Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax rate in Table 1, above, as needed to satisfy the Special Tax Requirement;
Second: If additional moneys are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Parcel of Initial Taxable Property at up to 100% of the Initial Assigned Special Tax and Proportionately on each Parcel of Undeveloped Property at up to 100% of the Assigned Special Tax as needed to satisfy the Special Tax Requirement;
Third: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Parcel of Undeveloped Property at up to 100% of the Maximum Special Tax as needed to satisfy the Special Tax Requirement;
Fourth: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, the Special Tax to be levied on each Parcel of Initial Taxable Property up to the Initial Maximum Special Tax in Exhibit A as needed to satisfy the Special Tax Requirement;
Fifth: If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Special Tax to be levied on each Parcel of Developed Property whose Maximum Special Tax is derived by the application of the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to the Maximum Special Tax for each such Parcel as needed to satisfy the Special Tax Requirement;
Sixth: If additional moneys are needed to satisfy the Special Tax Requirement after the first five steps have been completed, the Special Tax shall be levied Proportionately on each Parcel of Public Property and/or Property Owner’s Association Property that is not Exempt Property pursuant to the provisions of Section E. at up to 100% of the Maximum Special Tax as needed to satisfy the Special Tax Requirement.
Notwithstanding the above, under no circumstances will the Special Taxes levied against any Parcel of Residential Property be increased by more than ten percent (10%) per Fiscal Year as a consequence of delinquency or default by the owner of any other Parcel within the CFD.
E. EXEMPTIONS
Land other than the area identified in the TOPO/GEO Challenged Area, conveyed or irrevocably offered for dedication to a public agency after formation of the CFD and not otherwise shown as or not exempt pursuant to this Section E, shall be subject to the levy of Special Tax pursuant to Section 53317.3 or 53317.5 of the California Government Code. Parcels irrevocably offered for dedication to a public agency within the TOPO/GEO Challenged Area shall not be deducted from the acreage exemptions below.
Notwithstanding, the above,
the Special Tax shall not be imposed upon any of the following:
(1) The Legislative Body shall
not levy Special Taxes on up to 447.36 Acres of Public Property which include,
but not limited to, public streets, water and sewer facilities and/or flood
control drainage channels.
(2) The Legislative Body shall
not levy Special Taxes on up to 53.58 Acres of Public Property that is owned by
a public school district.
(3) The Legislative Body shall
not levy Special Taxes on up to 130.17 Acres of Public Property and/or Property
Owner’s Association Property that is property dedicated and restricted for the
use of open space, park, or habitat reserve.
After the limit of Acres within each of the above has been reached, the Special Tax obligation for any additional Public Property and/or Property Owner’s Association Property may prepay pursuant to the provision within Section H., below. Until the Special Tax obligation is prepaid as provided for in the preceding sentence, the Public Property and/or Property Owner’s Association Property will be subject to the levy of the Special Tax as provided for in the sixth step of Section D. above.
F. MANNER OF COLLECTION, PENALTIES,
PROCEDURE & LIEN PRIORITY
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the County may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on Parcels having delinquent Special Taxes as permitted by the Act if necessary to meet the financial obligations of the CFD.
G. APPEALS
Any owner of a Parcel claiming that the amount of application of the Special Tax is not correct and requesting a refund may file a written notice of appeal with the Administrator once the Special Tax in dispute has been paid but, not later than 12 months after the mailing of the property tax bill on which the Special Tax appears. The 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, convene the CFD Special Tax Review Board and decide the appeal. This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to any legal action by such owner.
H. PREPAYMENT OF SPECIAL TAX
The following definitions apply to this Section H:
“CFD Public Facilities” means $15,018,067 expressed in 2002 dollars, which shall increase by the Construction Inflation Index on July 1, 2003, and on each July 1 thereafter, or such lower number as (i) shall be determined by the Administrator as sufficient to provide the public facilities under the authorized bonding program of the CFD, or (ii) shall be determined by the Legislative Body concurrently with a covenant that it will not issue any more Bonds to be supported by Special Taxes levied under this Rate and Method of Apportionment.
“Construction Fund” means a fund or an account specifically identified in the Indenture to hold funds which are currently available for expenditure to acquire or construct public facilities eligible under the Act.
“Construction Inflation Index” means the annual percentage change
in the Engineering News-Record Building Cost Index for the City of
“Future Facilities Costs” means the CFD Public Facilities minus public facility costs funded by Outstanding Bonds, and minus monies previously paid into the Construction Fund together with interest earnings on the Construction Fund actually earned prior to the date of prepayment.
“Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of Special Taxes, which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Taxes.
1. Prepayment
in Full
The Maximum Special Tax obligation may only be prepaid and permanently satisfied by a Parcel of Developed Property, and Public Property and/or Property Owner’s Association Property that is not Exempt Property pursuant to Section E. The Maximum Special Tax obligation applicable to such Parcel may be fully prepaid and the obligation of the Parcel to pay the Special Tax permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to the Parcel at the time of prepayment. An owner of a Parcel intending to prepay the Maximum Special Tax obligation shall provide the Administrator with written notice of intent to prepay, and within 10 business days of receipt of such notice, the Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the proper amount of a prepayment. Within 15 business days of receipt of such non-refundable deposit, the Administrator shall notify such owner of the prepayment amount for such Parcel. Prepayment must be made not less than 60 business days prior to any redemption date, unless authorized by the Administrator, for any Bonds to be redeemed with the proceeds of such prepaid Special Taxes.
The Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below):
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Total: equals Prepayment Amount
As of the proposed date of prepayment, the Prepayment Amount (defined below) shall be calculated as follows:
1. Confirm that no Special Tax delinquencies apply to such Parcel.
2. For Parcels of Developed Property, compute the Maximum Special Tax for the Parcel to be prepaid. For Parcels of Public Property and/or Property Owner’s Association Property to be prepaid, compute the Maximum Special Tax for that Parcel.
3. Divide the Maximum Special Tax computed pursuant to paragraph 2 by the total estimated Maximum Special Taxes for the entire CFD based on the Developed Property Special Tax which could be charged, less any Parcels which have been prepaid.
4. Multiply the quotient computed pursuant to paragraph 3 by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the “Bond Redemption Amount”).
5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).
6. Compute the Future Facilities Costs.
7. Multiply the quotient computed pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be prepaid (the “Future Facilities Amount”).
8. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed from Special Tax prepayments.
9. Determine the Special Taxes levied on the Parcel in the current Fiscal Year which have not yet been paid.
10. Compute the amount the Administrator reasonably expects to derive from the reinvestment of the Bond Redemption Amount less the Future Facilities Amount from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment.
11. Add the amounts computed pursuant to paragraphs 8 and 9 and subtract the amount computed pursuant to paragraph 10 (the “Defeasance Amount”).
12. Verify the administrative fees and expenses, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming the Outstanding Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the “Administrative Fees and Expenses”).
13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero.
14. The Maximum Special Tax prepayment is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 7, 11 and 12, less the amount computed pursuant to paragraph 13 (the “Prepayment Amount”).
15. From the Prepayment Amount, the amounts computed pursuant to paragraphs 4, 5, 11, and 13 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Outstanding Bonds or make debt service payments. The amount computed pursuant to paragraph 7 shall be deposited into the Construction Fund. The amount computed pursuant to paragraph 12 shall be retained by the CFD.
The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of bonds or to make debt service payments.
As a result of the payment of the current Fiscal Year’s Special Tax levy as determined under paragraph 9 (above), the Administrator shall remove the current Fiscal Year’s Special Tax levy for such Parcel from the County tax rolls. With respect to any Parcel that is prepaid, the Legislative Body shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Special Taxes and the release of the Special Tax lien on such Parcel, and the obligation of such Parcel to pay the Special Tax shall cease.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Taxes that may be levied on Taxable Property after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds plus projected annual Administrative Expenses.
2. Prepayment
in Part
The Maximum Special Tax on a Parcel of Developed Property may be partially prepaid in increments of $5,000. The amount of the prepayment shall be calculated as in Section H.1 except that a partial prepayment shall be calculated according to the following formula:
PP = ((PE –A)x F)+A
These terms have the following meaning:
PP = the partial prepayment
PE = the Prepayment Amount calculated according to Section H.1
F = the percent by which the owner of the Parcel(s) is partially prepaying the
Maximum Special Tax.
A = the Administrative Fees and Expenses calculated according to Section H.1
The owner of a Parcel who desires to partially prepay the Maximum Special Tax shall notify the Administrator of (i) such owner’s intent to partially prepay the Maximum Special Tax, (ii) the percentage by which the Maximum Special Tax shall be prepaid, and (iii) the company or agency that will be acting as the escrow agent, if applicable, and within 10 business days of receipt of such notice, the Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the proper amount of a partial prepayment. Within 15 business days of receipt of such non-refundable deposit, the Administrator shall notify such owner of the partial prepayment amount of such Parcel. Partial prepayment must be made not less than 60 business days prior to any redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Taxes.
With respect to any Parcel that is partially prepaid, the Administrator shall (i) distribute the funds remitted to it according to Paragraph 13 of Section H.1, and (ii) indicate in the records of the CFD that there has been a partial prepayment of the Maximum Special Tax and that a portion of the Maximum Special Tax equal to the outstanding percentage (1.00 - F) of the remaining Maximum Special Tax shall continue to be authorized to be levied on such Parcel pursuant to Section D.
I. TERM OF THE SPECIAL TAX
Special Taxes shall be levied for the period necessary to satisfy the Special Tax Requirement, but in no event shall it be levied after Fiscal Year 2029-2030 or the stated maturity of the bonds, whichever is sooner.
EXHIBIT A
|
Initial Taxable Property (1) |
Acres (2) |
TOPO/GEO Challenged Acreage (3) |
Initial Taxable Acres (4) |
Initial Assigned Special Tax ($705) (5) |
Initial Maximum Special Tax ($928) (6) |
|
334250003-6 |
77.29 |
11.08 |
66.21 |
$46,678.05 |
$61,442.88 |
|
364190001-8 |
159.67 |
0.00 |
159.67 |
$112,567.35 |
$148,173.76 |
|
364190002-9 |
79.46 |
0.00 |
79.46 |
$56,019.30 |
$73,738.88 |
|
364200001-8 |
160 |
0.00 |
160 |
$112,800.00 |
$148,480.00 |
|
364200004-1 |
78.35 |
9.27 |
69.08 |
$48,701.40 |
$64,106.24 |
|
461150006-9 |
71.98 |
0.00 |
71.98 |
$50,745.90 |
$66,797.44 |
|
461150010-2 |
31.81 |
0.00 |
31.81 |
$22,426.05 |
$29,519.68 |
|
461150012-4 |
108.19 |
0.84 |
107.35 |
$75,681.75 |
$99,620.80 |
|
461150015-7 |
74.68 |
4.84 |
69.84 |
$49,237.20 |
$64,811.52 |
|
461160010-3 |
18.04 |
0.00 |
18.04 |
$12,718.20 |
$16,741.12 |
|
461160014-7 |
37.95 |
15.39 |
22.56 |
$15,904.80 |
$20,935.68 |
|
461160016-9 |
86.48 |
7.41 |
79.07 |
$55,744.35 |
$73,376.96 |
|
461160017-0 |
4.84 |
0.00 |
4.84 |
$3,412.20 |
$4,491.52 |
|
461160021-3 |
3.24 |
0.00 |
3.24 |
$2,284.20 |
$3,006.72 |
|
461160023-5 |
18.55 |
0.00 |
18.55 |
$13,077.75 |
$17,214.40 |
|
461160025-7 |
15.88 |
0.00 |
15.88 |
$11,195.40 |
$14,736.64 |
|
461160027-9 |
14.21 |
0.00 |
14.21 |
$10,018.05 |
$13,186.88 |
|
461160029-1 |
47.08 |
0.00 |
47.08 |
$33,191.40 |
$43,690.24 |
|
461170001-6 |
80.24 |
77.27 |
2.97 |
$2,093.85 |
$2,756.16 |
|
461170002-7 |
40 |
27.40 |
12.6 |
$8,883.00 |
$11,692.80 |
|
461170003-8 |
199 |
111.78 |
87.22 |
$61,490.10 |
$80,940.16 |
|
461180026-0 |
15.88 |
0.00 |
15.88 |
$11,195.40 |
$14,736.64 |
|
461180028-2 |
15.62 |
0.00 |
15.62 |
$11,012.10 |
$14,495.36 |
|
461180030-3 |
7.1 |
0.00 |
7.1 |
$5,005.50 |
$6,588.80 |
|
461180032-5 |
7.1 |
0.00 |
7.1 |
$5,005.50 |
$6,588.80 |
|
461180034-7 |
8.07 |
0.00 |
8.07 |
$5,689.35 |
$7,488.96 |
|
461180036-9 |
8.07 |
0.00 |
8.07 |
$5,689.35 |
$7,488.96 |
|
461180040-2 |
10.24 |
0.00 |
10.24 |
$7,219.20 |
$9,502.72 |
|
461180042-4 |
10.24 |
0.00 |
10.24 |
$7,219.20 |
$9,502.72 |
|
461180044-6 |
10.24 |
0.00 |
10.24 |
$7,219.20 |
$9,502.72 |
|
461180046-8 |
15.65 |
0.00 |
15.65 |
$11,033.25 |
$14,523.20 |
|
461180048-0 |
124.31 |
0.00 |
124.31 |
$87,638.55 |
$115,359.68 |
|
461190005-2 |
1.84 |
0.00 |
1.84 |
$1,297.20 |
$1,707.52 |
|
461190015-1 |
2.75 |
0.00 |
2.75 |
$1,938.75 |
$2,552.00 |
|
461190017-3 |
2.65 |
0.00 |
2.65 |
$1,868.25 |
$2,459.20 |
|
461190041-4 |
23.19 |
0.00 |
23.19 |
$16,348.95 |
$21,520.32 |
|
461190042-5 |
35.53 |
17.19 |
18.34 |
$12,929.70 |
$17,019.52 |
|
461190043-6 |
35.56 |
14.08 |
21.48 |
$15,143.40 |
$19,933.44 |
|
461190044-7 |
35.6 |
13.82 |
21.78 |
$15,354.90 |
$20,211.84 |
|
461190045-8 |
35.64 |
14.76 |
20.88 |
$14,720.40 |
$19,376.64 |
|
461190046-9 |
35.67 |
0.55 |
35.12 |
$24,759.60 |
$32,591.36 |
|
461190047-0 |
21.7 |
0.00 |
21.7 |
$15,298.50 |
$20,137.60 |
|
461190048-1 |
19.9 |
0.00 |
19.9 |
$14,029.50 |
$18,467.20 |
|
461190049-2 |
19.94 |
0.00 |
19.94 |
$14,057.70 |
$18,504.32 |
|
461190050-2 |
22.3 |
0.00 |
22.3 |
$15,721.50 |
$20,694.40 |
|
461190051-3 |
2.27 |
0.00 |
2.27 |
$1,600.35 |
$2,106.56 |
|
461190052-4 |
2.27 |
0.00 |
2.27 |
$1,600.35 |
$2,106.56 |
|
461190053-5 |
2.27 |
0.00 |
2.27 |
$1,600.35 |
$2,106.56 |
|
461200002-9 |
9.66 |
0.00 |
9.66 |
$6,810.30 |
$8,964.48 |
|
461200007-4 |
9.85 |
0.00 |
9.85 |
$6,944.25 |
$9,140.80 |
|
461200008-5 |
30.28 |
0.00 |
30.28 |
$21,347.40 |
$28,099.84 |
|
461200009-6 |
32.71 |
0.00 |
32.71 |
$23,060.55 |
$30,354.88 |
|
461200011-7 |
6.56 |
0.00 |
6.56 |
$4,624.80 |
$6,087.68 |
|
461200013-9 |
2.77 |
0.00 |
2.77 |
$1,952.85 |
$2,570.56 |
|
461200014-0 |
3.8 |
0.00 |
3.8 |
$2,679.00 |
$3,526.40 |
|
461200016-2 |
37.86 |
0.00 |
37.86 |
$26,691.30 |
$35,134.08 |
|
461200019-5 |
114.44 |
0.00 |
114.44 |
$80,680.20 |
$106,200.32 |
|
461210001-9 |
80 |
28.39 |
51.61 |
$36,385.05 |
$47,894.08 |
|
461210003-1 |
39.43 |
25.44 |
13.99 |
$9,862.95 |
$12,982.72 |
|
461210004-2 |
39.73 |
12.51 |
27.22 |
$19,190.10 |
$25,260.16 |
|
461210005-3 |
109.67 |
22.69 |
86.98 |
$61,320.90 |
$80,717.44 |
|
461210007-5 |
8.81 |
0.00 |
8.81 |
$6,211.05 |
$8,175.68 |
|
461210008-6 |
9.5 |
1.19 |
8.31 |
$5,858.55 |
$7,711.68 |
|
461210009-7 |
9.96 |
9.10 |
0.86 |
$606.30 |
$798.08 |
|
461210010-7 |
9.54 |
8.64 |
0.9 |
$634.50 |
$835.20 |
|
462050001-2 |
9.53 |
0.00 |
9.53 |
$6,718.65 |
$8,843.84 |
|
462050002-3 |
39.73 |
0.00 |
39.73 |
$28,009.65 |
$36,869.44 |
|
462060001-3 |
9.85 |
0.00 |
9.85 |
$6,944.25 |
$9,140.80 |
|
462060002-4 |
9.86 |
0.00 |
9.86 |
$6,951.30 |
$9,150.08 |
|
462060006-8 |
9.86 |
0.00 |
9.86 |
$6,951.30 |
$9,150.08 |
|
462060012-3 |
8.74 |
0.00 |
8.74 |
$6,161.70 |
$8,110.72 |
|
462060013-4 |
8.74 |
0.00 |
8.74 |
$6,161.70 |
$8,110.72 |
|
462060014-5 |
16.89 |
0.00 |
16.89 |
$11,907.45 |
$15,673.92 |
|
466340006-1 |
18.86 |
0.00 |
18.86 |
$13,296.30 |
$17,502.08 |
|
466340007-2 |
19.23 |
0.00 |
19.23 |
$13,557.15 |
$17,845.44 |
|
466340008-3 |
18.81 |
0.00 |
18.81 |
$13,261.05 |
$17,455.68 |
|
466340009-4 |
19.22 |
0.41 |
18.81 |
$13,261.05 |
$17,455.68 |
|
466340010-4 |
19.66 |
14.10 |
5.56 |
$3,919.80 |
$5,159.68 |
|
466340011-5 |
19.1 |
14.32 |
4.78 |
$3,369.90 |
$4,435.84 |
|
466340012-6 |
19.42 |
5.16 |
14.26 |
$10,053.30 |
$13,233.28 |
|
466340013-7 |
21.44 |
19.61 |
1.83 |
$1,290.15 |
$1,698.24 |
|
466340014-8 |
22.68 |
22.50 |
0.18 |
$126.90 |
$167.04 |
|
466340015-9 |
24.12 |
23.95 |
0.17 |
$119.85 |
$157.76 |
|
466340016-0 |
18.73 |
0.00 |
18.73 |
$13,204.65 |
$17,381.44 |
|
466340017-1 |
31.57 |
0.00 |
31.57 |
$22,256.85 |
$29,296.96 |
|
466340018-2 |
18.92 |
0.00 |
18.92 |
$13,338.60 |
$17,557.76 |
|
466340019-3 |
18.31 |
0.00 |
18.31 |
$12,908.55 |
$16,991.68 |
|
466340020-3 |
17.66 |
0.00 |
17.66 |
$12,450.30 |
$16,388.48 |
|
466350018-3 |
156.12 |
14.81 |
141.31 |
$99,623.55 |
$131,135.68 |
