RES-8528 Consideration to Alter the Rate and Method of Apportionment of Special Taxes Community Facilities District No. 91-2RESOLUTION NO. 8528
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ORANGE OF CONSIDERATION TO ALTER THE RATE AND
METHOD OF APPORTIONMENT OF SPECIAL TAXES
WITHIN THE CITY OF ORANGE COMMUNITY FACILITIES
DISTRICT NO. 91-2 (SERRANO HEIGHTS
PUBLIC
IMPROVEMENTS).WHEREAS, on November 12, 1991, the City Council of the City of Orange adopted
Resolution No, 7898 of the City of Orange (the "City"), stating its intention to fonn the City of Orange
Community Facilities District No. 91-2 (Serrano Heights Public Improvements) (the "District"), pursuant to
the Mello-Roos Community Facilities Act of 1982, as amended (the "Act"), to finance certain
facilities (
the Facilities");WHEREAS, notice was published as required by the Act relative to the intention of
the City Council to fonn the District and to provide for the financing of
the Facilities;WHEREAS, the City Council held a noticed public hearing as required by the Act relative
to the fonnation of the District and the rate and method of apportionment of the special tax to be levied
within the District to finance a portion of the costs of
the Facilities;WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining
to the fonnation of the District and the levy of said special taxes were heard, evidence was
presented and considered by the City Council and a full and fair hearing
was held;WHEREAS, subsequent to said hearing, the City Council adopted resolutions
entitled "A Resolution of the City Council of the City of Orange ofFonnation of City of Orange
Community Facilities District No. 91-2 (Serrano Heights Public Improvements), Authorizing the Levy of a
Special Tax Within the District, Preliminarily Establishing an Appropriations Limit for the District and Submitting
Levy of the Special Tax and the Establishment of the Appropriations Limit to the Qualified Electors
of the District,"A Resolution of the City Council of the City of Orange Determining the Necessity
to Incur Bonded Indebtedness Within the City of Orange Community Facilities District No. 91-
2 (Serrano Heights Public Improvements) and Submitting Proposition to the Qualified Electors of the District,"
and "A Resolution of the City Council of the City of Orange Calling Special Election," which
resolutions established the District,authorized the levy of a special tax within the District and called an election within
the District on the proposition of incurring indebtedness, levying a special tax, and establishing
an appropriations limit
within the District, respectively;WHEREAS, an election was held within the District in which
the eligible landowner elector unanimously
approved said propositions; and;WHEREAS, City staff has received a request from the sole owner of the
property in the District to alter the rate and method of apportionment of the special taxes for the District,
and the City Council desires to acknowledge receipt of said request and to commence proceedings to alter the
rate and method of apportionment of the special tax authorized to be
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ORANGE DOES
HEREBY RESOLVE AS FOLLOWS:
Section 1. Receipt by the City of a request of the owner of all of the property in the District to
alter the rate and method of apportionment of the special taxes for the District is hereby acknowledged,
Section 2. The City Council hereby finds and detennines that public convenience and necessity
require that the rate and method of apportionment of the special tax authorized to be levied within the
District be altered,
Section 3. The name of the District is "City of Orange Community Facilities District No. 91-
2 Serrano Heights Public
Improvements)".Section 4. The territory included in the District is as shown on the map of the District recorded
at Book 57 of Maps of Assessment and Community Facilities Districts at Pages 44 through 47, in the
office of the County Recorder for the County of Orange, State of California, which map is the final
boundary map of the
District,Section 5. The rate and method of apportionment of the special tax among the parcels of
real property within the District is proposed to be amended and restated as set forth in Exhibit B attached
hereto and by this reference incorporated herein, The conditions under which the obligation to pay the
specified special tax may be prepaid and pennanently satisfied are specified in said Exhibit B. Such amended
and restated rate and method of apportionment is in sufficient detail to allow each landowner within the
District to estimate the maximum amount such owner will have to
pay,Section 6. Tuesday, November 14, 1995, at 7:00 p.m" in the regular meeting place of the
City Council, Council Chambers, City Hall, 300 East Chapman Avenue, Orange, California, be, and the
same are hereby appointed and fixed as the time and place when and where the City Council, as legislative
body for the District, will conduct a public hearing on the proposed alteration to the rate and method
of apportionment of the special
tax,Section 7. The City Clerk is hereby directed to cause notice of said public bearing to be given
by publication one time in a newspaper published in the area of the District, The publication of said
notice sball be completed at least seven days before the date herein set for said hearing, Said notice sball be in
the fonn of Exhibit A
hereto,Section 8. The officers and employees of the City are hereby authorized and directed to take
all actions and do all things which they, or any of them, may deem necessary or desirable to accomplish
the purpose of this Resolution and not inconsistent with the provisions
hereof.Section 9. This Resolution sball take effect immediately upon its
adoption,ADOPTED this 10th day of October
1995,
ATTEST:Cassandra J. C City Clerk of the City of
Orange RESON08528 2-DPWE:
I hereby certify that the foregoing Resolution was duly and regularly adopted by the City Council
of the City of Orange at a regular meeting thereof held on the 10th day of October. 1995, by the following
vote:
AYES:COUNCIL MEMBERS: !1IJRPHY, BARRERA, MAYOR COONTZ, SPURGEON, SLATER
NOES:COUNCIL MEMBERS: NOKE
ABSENT:COUNCIL MEMBERS: NONE
ABSTAIN:COUNCIL MEMBERS: NONE
t1...-:(-City ClerkoCthe
City of Orange RESON08528 3-DPWE:
dr
EXHIBIT A
NOTICE OF PUBLIC HEARING
CTIY OF ORANGE
COMMUNlTYFACILmES DISTRICT NO, 91-
2 SERRANO HEIGHTS PUBLIC
IMPROVEMENTS)Notice is hereby given that on October 10,1995, the City Council of the City of Orange adopted
a Resolution entitled "A Resolution of the City Council of the City of Orange of Consideration to Alter
the Rate and Method of Apportionment of Special Taxes Within the City of Orange Community
Facilities District No, 91-2 (Serrano Heights Public Improvements)", Pursuant to the
Mello-Roos Community Facilities Act of 1982 (the "Act") the City Council of the City of Orange hereby gives
notice as follows:A. The text of said Resolution of Consideration
is as follows:WHEREAS, on November 12, 1991, the City Council of the City
of Orange adopted Resolution No, 7898 of the City of Orange (the "City"), stating its intention to form
the City of Orange Community Facilities District No, 91-2 (Serrano
Heights Public Improvements) (the District"), pursuant to the Mello-Roos Community Facilities Act of
1982, as amended (the "Act"),to
finance certain facilities (the "Facilities");WHEREAS, notice was published as required by the Act relative
to the intention of the City Council to form the District and to provide for
the financing of the Facilities;WHEREAS, the City Council held a noticed public hearing as
required by the Act relative to the formation of the District and the rate and method of apportionment of
the special tax to be levied within the District to finance a portion of
the costs of the Facilities;WHEREAS, at said bearing all persons desiring to be heard
on all matters pertaining to the formation of the District and the levy of said special taxes
were heard, evidence was presented and considered by the City Council and a full
and fair hearing was held;WHEREAS, subsequent to said hearing, the
City Council adopted resolutions entitled Resolution of the City Council of the City of Orange of Formation
of City of Orange Community Facilities District No. 91-2 (Serrano Heights Public
Improvements), Authorizing the Levy of a Special Tax Within the District, Preliminarily Establishing
an Appropriations Limit for the District and Submitting Levy of the Special Tax and the Establishment
of the Appropriations Limit to the Qualified Electors of the District," "A Resolution of the City
Council of the City of Orange Determining the Necessity to Incur Bonded Indebtedness
Within the City of Orange Community Facilities District No, 91-2 (Serrano
Heights Public Improvements) and Submitting Proposition to the Qualified Electors of the District," and "A Resolution of the
City Council of the City of Orange Calling Special Election," which resolutions established
the District, authorized the levy of a special tax within the District and called an election
within the District on the proposition of incurring indebtedness, levying a special tax,
and establishing
an
WHEREAS, an election was held within the District in which the eligible landowner
elector unanimously approved said propositions; and;
WHEREAS, City staff has received a request from the sole owner of the property in the
District to alter the rate and method of apportionment of the special taxes for the District, and the
City Council desires to acknowledge receipt of said request and to commence proceedings to alter
the rate and method of apportionment of the special tax authorized to be levied within the District,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ORANGE DOES
HEREBY RESOLVE AS FOLLOWS:
Section I. Receipt by the City of a request of the owner of all of the property in the
District to alter the rate and method of apportionment of the special taxes for the District is hereby
acknowledged,
Section 2. The City Council hereby finds and determines that public convenience and
necessity require that the rate and method of apportionment of the special tax authorized to be
levied within the District be altered.
Section 3. The name of the District is "City of Orange Community Facilities District No,
91-2 (Serrano Heights Public
Improvements)".Section 4. The territory included in the District is as shown on the map of the
District recorded at Book 57 of Maps of Assessment and Community Facilities Districts at Pages
44 through 47, in the office of the County Recorder for the County of Orange, State of
California,w'aich map is the final boundary map of the
District,Sectian 5. The rate and method of apportionment of the special tax among the parcels
of real property within the District is proposed to be amended and restated as set forth in Exhibit
B attached hereto and by this reference incorporated herein, The conditions under which
the obligation to pay the specified special tax may be prepaid and pennanently satisfied are
specified in said Exhibit B, Such amended and restated rate and method of apportionment is in
sufficient detail to allow each landowner within the District to estimate the maximum amount such
owner will have to
pay,Section 6. Tuesday, November 14, 1995, at 7:00 p,m., in the regular meeting place of
the City Council, Council Chambers, City Hall, 300 East Chapman Avenue, Orange, California,
be,and the same are hereby appointed and fixed as the time and place when and where the
City Council, as legislative body for the District, will conduct a public hearing on the
proposed alteration to the rate and method of apportionment of the special
tax.Section 7. The City Clerk is hereby directed to cause notice of said public hearing to
be given by publication one time in a newspaper published in the area of the District, The
publication of said notice shall be completed at least seven days before the date herein set for said
hearing,Said notice shall be in the form of Exhibit A
hereto.Section 8. The officers and employees of the City are hereby authorized and directed
to take all actions and do all things which they, or any of them, may deem necessary or desirable
to accomplish the purposes of this Resolution and not inconsistent with the provisions
hereof,
Section 9. 1bis Resolution shall take effect immediately upon its adoption,
B. The time and place established under said Resolution of Consideration for the public
hearing required under the Act are Tuesday, November 14. 1995, at 7:00 p.m., in the regular meeting place
of the City Council of the City of Orange, Council Chambers, City Hall, 300 East Chapman Avenue,
Orange, California,
C. At said hearing, the testimony of all interested persons or taxpayers for or against the
changing of existing special taxes will be heard, Any person interested may file a protest in writing as
provided in Section 53336 of the Act, If the owners of one-half or more of the area of land in the
District not exempt from the special tax file written protests against the proposed alteration to the Rate and
Method and the protests are not withdrawn to reduce the value of the protests to less than a majority, the
City Council shall eliminate the alteration from the proceedings and the alteration shall not be included in
a resolution for a period of one year from the date of decision of the City Council after the
hearing,D, The proposed voting procedure shall be by special mail or hand-delivered ballot
of the property owners within the territory included with
the District.Dated: October
10 . 1995 Publish: rf2vI:. .;
2. & ,
EXIDBIT B
RATE AND METHOD OF APPORTIONMENT FOR
THE CITY OF ORANGE
COMMUNITY FACILITIES DISTRICT NO. 91-
2 SERRANO HEIGHTS PUBLIC
IMPROVEMENTS)A Special Tax shall be levied and collected in the City of Orange Community Facilities
District No, 91-2 (Serrano Heights Public Improvements) each Fiscal Year, in an amountdeterminedbytheFinanceDirectoroftheCityorhisdesigneethroughtheapplicationoftheproceduresdescribedbelow. All of the real property in CFD No. 91-2, unless exempted by law
or by the provisions hereof, shall be taxed for the purposes, to the extent and in
the
manner herein
provided.A. DEFINITIONS The terms used herein shall have
the following meanings:Act" means the Mello-Roos Community Facilities Act of1982, asamended, being Chapter 2.5, Part I, Division 2 of Title 5 of the Government Code
of
the State of California.Administrative Expenses" means any or all of the following: the
fees and expenses of any fIscal agent (including any fees or expenses of its counsel) employed
by the City in connection with any bonds of CFD No, 91-2, the expenses of
the City in carrying out its duties under any fiscal agent agreement with respect to
such bonds, including, but not limited to, the levy and collection of the Special Tax, any
City charges and including the fees and expenses of its counsel, an allocable share of thesalariesofCitystaffdirectlyrelatedtheretoandaproportionateamount
of City general administrative overhead related thereto, and all other costs and expenses of the City
or any fIscal agent incurred in connection with the diSCharge of their respective
duties under any fiscal agent agreement with respect to such bonds and, in the case of the City,
in any way related to the
administration of CFD No. 91-2.Apartment" means any Parcel of Residential Property
that consists of a building or buildings comprised of attached residential unitsavailableforrental, but not purchase,by the
general public and under common management.Assessor's Parcel" or "Parcel" means a lot orparcelwithaparcelnumberassigned
CFD No. 91-
2 Page
2 Assigned Special Tax" means the Special Tax described in Section C that applies
to Parcels of Developed
Property.Backup Special Tax" means that Special Tax described in Section C that may
apply to Parcels of Developed
Property,CFD No, 91-2" means Community Facilities District No. 91-2 (
Serrano Heights Public Improvements) established by the City under the Act, including
any annexations thereto.City" means the City
of Orange, California.Condominium" means a unit meeting the statutory defInition
of a condominium contained in California Civil
Code, Section 1351.Council" means the City Council of the City, acting as the legislative
body of
CFD No, 91-2.County" means
the County of Orange.Developed Property" means for any Fiscal Year, any Parcel
of Taxable Property for which a building permit was issued, as of March 1 of
the prior Fiscal Year.Final Residential Subdivision" means a subdivision of property
by recordation of a fInal map, parcel map, or lot line adjustment, approved by the
City pursuant to the Subdivision Map Act (California Government Code Section 66410
et seq.) or recordation of a condominium plan pursuant to California Civil Code 1352
that creates individual lots for which building
permits may be issued.Finance Director" means the official of the City who is the
chief fmancial officer or other comparable officer of the City or designee thereof
responsible for determining the Special Tax Requirement and providing for the levy and collection
of the Special Taxes.Fiscal Year" means the period starting any July 1 and ending on
the following June 30.Flat" means any Parcel of Residential Property that consists of
a building or buildings of attached units, other than Apartments, in which most or all of
the individual units are stacked above or below other
units in the structure.Home Owner Association Property" means, for any Fiscal
Year, any real property within the boundaries of CFD No. 91-2 that is owned
by, or irrevocably offered for dedication to, if a copy of the offer is provided to the Finance
Director, a home owner's association on or before March I
CFD No. 91-
2 Page
3 Land Use Class" or "Class" means any of the classes listed in Table I
below.Maximum Special Tax" means the maximum Special Tax, determined in
accordance with Section C, that can be levied in CFD No. 91-2 in any Fiscal Year
on Undeveloped Property and each Land Use Class of Developed Property,
as applicable.Non-Residential Property" means any Parcel of Developed
Property other
than Residential Property.Planning Areas" means those areas shown on Exhibit A. Minor
adjustments in the boundaries of the planning areas may be made to accommodate
adjustments in the tentative maps prepared
for these areas.Proportionately" or "Proportioned" shall mean for Developed Property
that the ratio of the actual Special Tax levy to the Assigned Special Tax is equal for
all Assessor's Parcels of Developed Property. "Proportionately" or "Proportioned"
shall mean for Undeveloped Property that the ratio of the actual Special Tax levy
to the Maximum Special Tax for Undeveloped Property is equal for all Assessor's
Parcels
of Undeveloped Property.Public Property" means property within the boundaries of CFD No.
91-2 owned by,or irrevocably offered for dedication (in a final map approved by the
City) to, the federal government, State of California, or other public agency or
easements for the exclusive use of
a public utility provider.Residential Property" means any Parcel of Developed Property
for which a building permit was issued for purposes of constructing a
residential dwelling unit(s).Single Family" means any Parcel of Residential Property
other than Apartments,
Flats,and Town Homes.Special Tax" means the Special Tax that may be levied by CFD
No. 91-2 each Fiscal Year to
fund the Special Tax Requirement.Special Tax Requirement" means that amount required in any
Fiscal Year to pay: (I)debt service and other periodic costs on the bonds or
other indebtedness of CFD No.91-2 due in the calendar year commencing in such Fiscal
Year, (2) the cost of acquisition or construction of authorized facilities of
CFD No. 91-2, (3) Administrative Expenses,4) costs of authorized services of CFD No.
91-2, (5) any amount required to replenish any reserve fund established in association with
bonds issued for CFD No, 91-2, (6) an amount equal to the estimated
delinquencies expected in payment of the Special Tax not otherwise taken into account, as
determined by the Finance Director or his designee, and 7) the costs of
CFD No. 91-
2 Page
4 fees for instruments that serve as the basis of a reserve fund related to any
indebtedness in lieu of
cash).Taxable Property" means any Parcel in or annexed to CFD No. 91-2 which
is not Public Property or Home Owner
Association Property.Town Home" means any Parcel of Residential Property that consists of a
building or buildings comprised of attached units, other than Apartments, in which most or all
of the individual units are side by side and not stacked above or below other units
in
the structure.Undeveloped Property" means, for any Fiscal Year, any Parcel of
Taxable Property that is not classified as Developed Property as of March 1 of the previous
Fiscal Year,B. ASSIGNMENT TO LAND
USE CATEGORIES For each Fiscal year, all Taxable Property shall be classified as Developed
Property or Undeveloped Property as of March 1 of each Fiscal Year and shall be subject
to the Special Tax in accordance with the rate and method of apportionment
described in Sections C and D below. For purposes of detennining the applicable
Assigned Special Tax in each Fiscal Year for Parcels of Developed Property, each Parcel shall
be assigned by the Finance Director to one of the Land Use Classes designated in Table I
below as of March 1 of the prior Fiscal Year. Non-Residential Property shall be
assigned
to Class 5.C. MAXIMUM
SPECIAL TAX RATES
1. Developed Property The Maximum Special Tax per unit and per building square foot
for any Fiscal Year for each Assessor's Parcel classified as Developed Property
shall be the greater of (i) the Backup Special Tax for the Parcel or (ii) the
amount derived by application of the applicable
Assigned Special Tax.a.
Assigned Special Tax The Assigned Special Tax per unit and per building square
foot for each Land Use Class is shown by Table I. The Assigned Special
Tax for each dwelling unit shall be the sum of the special tax per unit
plus the product of the special tax per square foot multiplied by the
building square footage of the unit. The square footage of a dwelling unit shall
be detennined by the Director of Public Works at the time of issuance
of the original building pennit by reference to the square footage shown
J]
iiu
l
Po"l:l
a I
J~
01
Po'-
5 g
Po l€ ~
u
I'}Po
e
li:;:l
to.. ]0 bJ) ;:l
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o~C
3 ~
u 0
5-
5 -... . oU
0'"C~
N
1lbJ) '" .. ~]
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1 .l:0
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c
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C! '" .~~ .
g,-s .0
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8.~
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cm No. 91-
2 Page
6 pennit, exclusive of garages, common areas, and other Structures
which are not used as living space. Once detennined, the square footageassignedtoaresidentialunitshallnotbesubjecttochange (despite the issuance
of additional pennits for changes or modifications to the
structure).TABLE
I Assigned Special Taxes
for Developed Property in cm No,
91-2 Class Lan,lUse Assigned$
pecialT~.
Rates ....1995-96 PertJnit
PerSql1al'e.Jloot I Single
Family $530 $.49 2 Town
Home $570 $,37 3
Flat $410 $.40 4
Apartment $408 NA 5 Non-Residential N/A $
16,125
per net taxable acre On each July I, commencing July I, 1996, the
Assigned Special Tax for each Class shall be increased to 102 percentoftherespectiveAssignedSpecialTaxineffectin
the previous Fiscal Year.
b. Backup Special Tax The Backup Special Tax for each of the Planning
Areas shown in Exhibit A shall be the amounts
CFD No. 91-
2 Page
7 TABLE
II Backup Special Taxes
for Developed Property in CFD No.
91-2Ba~
u'
p\
peciarT~FYl995-96
1 $130,638
2 $205,328
3 $138,280
4 $175,506
5 $218,272
6 $94,638
7 $192,924
8 $254,618
9 $223,836
10 $129,626 Total $
1,763,666 Upon the subdivision of these Planning Areas in a manner
that creates a Final Residential Subdivision the Backup Special Tax of
the Planning Area shall be
allocated as follows:i) If a Final Residential Subdivision includes all
of the Taxable Property in a Planning Area, then the Backup Special
Tax for the Final Residential Subdivision shall equal the
Backup Special Tax of the Planning Area as shown in Table II, and
shall be allocated equally to each Parcel in such subdivision for
which the issuance of a building pennit for pUIpOses of construction
of a residential dwelling unit or units is pennitted. In the case
of a Final Residential Subdivision which creates
Condominiums, the Backup Special Tax shall be allocated equally among
the dwelling units specified in the condominium plan. In the case
of a Final Residential Subdivision that will include
cm No. 91-
2 Page
8 Special Tax shall be allocated equally on the basis of the total
units allowed to be built on any Parcel compared to the total
units allowed to be built in the Planning
Area.ii) If a Final Residential Subdivision is recorded for less than
all of the Taxable Property in a Planning Area, the Backup
Special Tax for such Final Residential Subdivision shall equal the
Backup Special Tax for the Planning Area as shown in Table II
multiplied by the quotient of the acres of Taxable Property in such
Final Residential Subdivision divided by the estimated acres of
Taxable Property in the Planning Area as shown in Table m. The
Backup Special Tax for the Final Residential Subdivision shall then
be allocated to each residential unit as described
above.
TABLEm Estimated Acres
of Taxable Property in cm No.
91-2
Planning Estimated Area
Taxable Acres I
11.4 2
12.1 3
9.3 4
10.4 5
18.8 6
8.0 7
14.0 8
21.7 9
7.8 10
12.7 All reallocations of the Backup Special Tax shall be made in
a manner such that the sum of the reallocated Backup Special Tax equals
the Backup Special Tax prior to
cm No. 91-
2 Page
9 The Backup Special Tax for any Parcel of Non-Residential
Property shall be $.37 per square foot of the area of
the Parcel.On each July 1, commencing July 1, 1996, the Backup Special
Tax shall be increased to 102 percent of the respective Backup Special Tax
in effect in the previous
Fiscal Year.c. Limits on Special Tax on
Residential Property Pursuant to Section 53321 of the Act, under no circumstances
shall the Special Tax levied against any Parcel of Residential Property
be increased by more than ten percent as a consequence of delinquency or
default by the owner of any other Parcel. An increase of ten percent or
more shall be determined by comparison to what the levy of Special Tax
would be for any Parcel if there were no delinquencies
or defaults.2.
Undeveloped Property The 1995-96 Maximum Special Tax for Undeveloped Property shall
be $16,
125 per acre.On each July 1, commencing July 1, 1996, the Maximum
Special Tax for Undeveloped Property shall be increased to 102 percent of
the Maximum Special Tax in effect in the
previous Fiscal Year.D. METHOD OF APPORTIONMENT OF
THE SPECIAL TAX Commencing with Fiscal Year 1996-97, and for each following
Fiscal Year, the Finance Director shall determine the Special Tax Requirement for the
applicable Fiscal Year and shall levy the Special Tax, as provided below, until the aggregate
amount of the levy equals the Special Tax Requirement
for such Fiscal Year:First: The Special Tax shall be levied Proportionately on each
Assessor's Parcel of Developed Property up to 91 percent of the applicable Assigned
Special Tax for each Land Use
Class of Developed Property.Second: If additional monies are needed after the first step
has been completed, the Special Tax shall be levied Proportionately on each Assessor'
s Parcel of Undeveloped Property, up to 91 percent of the Maximum Special
CFD No, 91-
2 Page
10 Third: If additional monies are needed after the first two steps have been completed,
then the levy of the Special Tax on each Assessor's Parcel of Developed Property
and Undeveloped Property shall be increased in equal percentages from the
amounts calculated pursuant to steps 1 and 2 above, up to 100 percent of the applicableAssignedSpecialTaxforDevelopedPropertyandupto100percentoftheMaximumSpecial
Tax for Undeveloped
Property.Fourth: If additional monies are needed after the fIrst three steps have beencompleted,then the levy of the Special Tax on each Assessor's Parcel of Developed Property
whose Maximum Special Tax is determined through the application of the Backup Special
Tax shall be increased in equal percentages from the Assigned Special Tax up to
the Maximum Special
Tax.E. E~
ONS The Finance Director shall not levy a Special Tax on up to 406.5 acres of
Public Property and Home Owner Association Property. Tax exempt status will beirrevocablyassignedbytheFinanceDirectorinthechronologicalorderinwhichproperty
is designated Public Property or Home Owner Association Property and in thefollowingorderof
priority:First: Public Property owned by entities of the federal government, State of
California,or any local government agency and easements for the exclusive use of publicutilityproviders, as of the date of formation of CFD No.
91-2;Second: Public Property acquired by the public agency or public utilityproviderthroughagift, dedication, negotiated transaction, eminent domain, or any other
form of conveyance, including granting of an easement, subsequent to the date of
formation of CFD No. 91-2, with priority in order of the acquisition
of the property;Third:Home Owner Association Property, with acres made exempt such
that the number of acres that are not exempt are equal in proportion to the number of
dwelling units
for each association.Public Property and Home Owner Association Property that is notexemptfromSpecialTaxesbythissectionshallbesubjecttothelevyoftheSpecialTaxand
shall be taxed as if the property were Undeveloped Property. However, theFinanceDirectormayexemptsuchParcelsfromthelevyoftheSpecialTaxinanyFiscal
Year provided the Special Tax Requirement can be satisfIed without imposing a levy
CFD No. 91-
2 Page
11 F. MANNER OF
COLLECTION The Special Tax will be collected in the same manner and at the same time as
ordinary ad valorem real property taxes, provided, however, that CFD No. 91-2
may collect Special Taxes at a different time or in a different manner as determined by
the Finance Director, if necessary to meet its
fmancial obligations.G. TERMINATION OF
SPECIAL TAX Except for any delinquent Special Taxes and related penalties and interest,
Special Taxes used to pay for either or both the acquisition and construction of any public
facilities for CFD No. 91-2 (through the issuance of bonds or otherwise) and levied
on any Parcel shall not be levied after the thirtieth (3Oth) Fiscal Year in which such
Parcel was taxed as Developed Property. After such thirtieth (30th) Fiscal Year, and the
collection of any delinquent Special Taxes, penalties and interest, the Finance Director
shall cause a document substantially in the form required by the Act evidencing
such termination of the levy and collection to be recorded in the office of the recorder
of the County.H, APPEALING TIlE LEVY
OF SPECIAL TAXES Any property owner claiming that the amount or application of the Special
Tax is not correct and requesting a refund may fIle a written notice of appeal and
refund to that effect with the Finance Director not later than one calendar year after
having paid the Special Tax that is disputed. The Finance Director 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, and decide the appeal, If the Finance
Director's decision requires the Special Tax be modified or changed in favor of the property
owner, a cash refund shall not be made (except for the last year of levy), but an
adjustment shall be made to the next Special Tax levy. Any dispute over the decision
of the Finance Director shall be referred to the City Council of the City and the decision
of the City Council shall be fmal. This procedure shall be exclusive and its
exhaustion by any property owner shall be a condition precedent to any legal action
by such owner.I, FULL PREPAYMENT
OF SPECIAL TAX The Special Tax on any Parcel of Developed Property may be fully
prepaid and the obligation to pay the Special Tax permanently satisfied by payment of the
sum
of the following:1. A sum equal to (a) delinquent Special Taxes on such
Parcel, including any applicable penalties and related costs, and (b) Special Taxes due
on such Parcel but not yet paid for the Fiscal Year in which such
CFD No. 91-
2 Page
U 2. A sum equal to the principal portion of the amount of prepayment determined
as
follows:P = PVST + 1.
10 Where the terms have the following
meaning:
P=
PVST =the principal portion of the
prepayment the net present value of the Maximum Special Tax for the
Parcel The net present value of the Maximum Special Tax shall be calculated based
on the Maximum Special Tax that may be levied on the Parcel until the
termination date of Special Taxes for the Parcel, using as the discount rate the
combined aggregate yield of the outstanding bonds (Le., the yield that when computing
the net present value of the remaining payments of principal and interest on the
bonds produces an amount equal to the face amount of the remaining
outstanding
bonds.)3. The principal portion of the prepayment shall be decreased by an adjustment
for a reserve fund credit. The adjustment shall be equal to a percent of the
principal portion of the prepayment equal to the lesser of the following: (i) the
amount required to be in the reserve fund, as a percent of the bonds outstanding, and (
ii)the amount actually in the reserve fund, as a percent of the bonds
outstanding.4. The amount calculated in steps 2-3, if used to redeem bonds, shall
be rounded up to the nearest $5,000, less the interest expected to be earned
on the prepayment until such bonds are redeemed; however, if prepayment is
made for two or more Parcels together, the aggregate principal of all of
the prepayments may be rounded up to the nearest $5,000, with the addition due to
the rounding apportioned to each prepayment based on the proportion of each
of the prepayments to the
total prepayment.5. A sum equal to applicable redemption premiums, if any, on the bonds
to
be redeemed.6. A sum equal to administrative fees and expenses of the City associated
with
the prepayment.The amounts calculated in the preceding steps shall be paid to the City and
shall be distributed by the City according to the fiscal agent agreement. Upon the
payment of such prepayment amount to the City, the obligation to pay Special Tax shall
be deemed to be permanently satisfied, the Special Tax shall not be levied thereafter, and
CFD No. 91-
2 Page
13 shall cause a notice of cessation of the Special Tax to be recorded within 30
working days of receipt of such prepayment
amount.The Finance Director may disallow the right to prepay Special Taxes, if in the
reasonable detennination of the Finance Director, such prepayment would negatively affect
the security of the remaining outstanding
bonds.J. PARTIAL PREPAYMENT OF SPECIAL
TAX The Special Tax on Developed Property may be partially prepaid on the Parcels
within a Final Residential Subdivision and that portion of the Special Tax obligation
pennanently satisfied. The amount of the prepayment shall be calculated as in Section I;
except,however, the principal portion shall be calculated according to the following
fonnula:Pp = PE X
P Where the tenns have the following
meaning:Pp = the principal portion of the partial
prepayment PE = the principal portion of the prepayment calculated according to Section 1.
2 P = the percent by which the owner of the Parcels within the Final
Residential Subdivision is to partially prepay the Special
Tax The partial prepayment of Special Taxes shall be collected at the close of escrow of
each Parcel in the Final Residential Subdivision. An owner of the Parcels within a
Final Residential Subdivision shall notify the Finance Director of (i) such owner's intent
to partially prepay Special Tax on all of the Parcels within a Final Residential
Subdivision or all of those Parcels within a Final Residential Subdivision that are owned by
such owner, (ii) the percentage by which the Special Tax shall be prepaid, (ill) the size
of units being built by the owner on such Parcels and the average parcel size, and (iv)
the company or agency that will be acting as the escrow agent. The owner shall
provide instructions to the escrow agent and the Finance Director, which instructions shall
direct the escrow agent to collect the partial prepayment of the Special Taxes as
calculated pursuant to this Section J and to remit this amount to the City. The Finance
Director shall provide the owner and the escrow agent with a statement of the amount
required for the partial prepayment of the Special Tax for a Parcel within five (5) working
days of notice of the pending close of an escrow. The notice to the Finance Director
must include confinnation of the square footage of the unit, calculated consistent with
Section C herein. The Finance Director may charge a reasonable fee for providing this
figure.With respect to any Parcel so partially prepaid, the City shall (i) distribute the
funds remitted to it by the escrow agent according to the fiscal agent agreement, (ii) cause
a suitable notice to be recorded in compliance with the Act within 30 days of receipt
em No, 91-
2 Page
14 such prepayment of Special Taxes, to indicate the partial prepayment of Special
Taxes and the release of the Special Tax lien in such amount, (ill) indicate in the records
of CFD No. 91-2 that there has been a partial prepayment of the Special Tax and
that this portion of the Special Tax shall not be levied thereafter. A partial prepayment
of Special Taxes shall reduce both the Backup Special Tax and the Assigned Special Tax
of the Parcel in equal percentages. Following a partial prepayment of the Special
Tax with respect to any Parcel, the outstanding percentage (1.00 - P) of the Special Tax
shall continue to be levied on such
Parcel.The Finance Director may disallow the right to prepay Special Taxes, if in the
reasonable determination of the Finance Director, such prepayment would negatively affect
the security of the remaining outstanding
bonds.K. MANDATORY
PREPAYMENT Before each Final Residential Subdivision is recorded the Finance Director, or
his designee, shall determine whether the sum of the estimated Maximum Special Taxes
that can be generated by all existing and future Developed Property in CFD No. 91-
2 is sufficient to meet the Special Tax Requirement in each future Fiscal Year, If
it is determined that such estimated Maximum Special Taxes are insufficient,
the Finance Director shall require the owner of such Final Residential Subdivision to
make a prepayment, at or before the recordation of the Final Residential Subdivision,
such that the Maximum Special Taxes from existing and future Developed Property
will be sufficient to meet the Special Tax Requirement in all future
Planning Areas
em No, 91-
2 1-' 8~
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