HomeMy WebLinkAboutReso 2000-175_ RESOLUTION NO. 2000-175
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA, CALIFORNIA, DECLARING ITS INTENTION
TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO.
2000-1 (SUNBOW II - VILLAGES 5 THROUGH 10) AND TO
AUTHORIZE THE LEVY OF A SPECIAL TAX THEREIN TO
FINANCE THE ACQUISITION OF CERTAIN FACILITIES
WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA (the
"City Council"), at this time desires to initiate proceedings to create a Community Facilities District
pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982," being
Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of Califomia (the "Act")
and the City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers
reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the
State of California (the "Ordinance") (the Act and the Ordinance may be referred to collectively as
the "Community Facilities District Law"). This Community Facilities District shall hereinafter be
referred to as COMMUNITY FACILITIES DISTRICT NO. 2000-1 (SUNBOW II - VILLAGES 5
THROUGH 10) (the "District"); and
WHEREAS, this City Council is now required to proceed to adopt its Resolution of Intention
to initiate the proceedings for the establishment of such District, to set forth the boundaries for such
District, to indicate the type of public facilities the acquisition of which is proposed to be financed
by such District, to indicate the rate and apportionment of a special tax sufficient to finance the
acquisition of such facilities and the administration of the District and any indebtedness incurred by
the District and to set a time and place for a public hearing relating to the establishment of such
District; and
WHEREAS, a map of such District has been submitted showing the boundaries of the
territory proposed for inclusion in the District including properties and parcels of land proposed to
be subject to the levy of a special tax by the District.
NOW, THEREFORE, IT IS HEREBY RESOLVED:
RECITALS
SECTION 1. The above recitals are all true and correct.
INITIATION OF PROCEEDINGS
SECTION 2. These proceedings are initiated by this City Council pursuant to the authorization of
Section 53318 of the Government Code of the State of California.
BOUNDARIES OF DISTRICT
SECTION 3. It is the intention of this City Council to establish the District pursuant to the
provisions of the Community Facilities District Law, and to determine the boundaries and parcels
Resolution 2000-175 --.,.
Page 2
on which special taxes may be levied to finance the acquisition of certain facilities. A description
of the boundaries of the territory proposed for inclusion in the District including properties and
parcels of land proposed to be subject to the levy of a special tax by the District is as follows:
All that property as shown on a map as previously approved by this City Council,
such map designated by the name of this District, a copy of which is on file in the
Office of the City Clerk and shall remain open for public inspection.
NAME OF DISTRICT
SECTION4. TheproposedDistdctshallbeknownanddesignatedasCOMMUNITYFACILITIES
DISTRICT NO. 2000-1 (SUNBOW II - VILLAGES 5 THROUGH 10).
DESCRIPTION OF FACILITIES
SECTION 5. It is the further intention of this City Council to finance the acquisition of certain
facilities. A general description of the type of facilities to be acquired is set forth in Exhibit A
attached hereto and incorporated herein by this reference.
The facilities are facilities which this legislative body is authorized by law to contribute
revenue to or to construct, own or operate. It is hereby further determined that the proposed facilities
are necessary to meet increased demands and needs placed upon the City and other public agencies
as a result of development within the District.
The cost of acquiring the facilities includes incidental expenses including but not limited to
the costs ofplarming and designing the facilities; all costs associated with the establishment of the
District, the issuance and administration of bonds, including the payment of any rebate obligation
due and owing to the federal government, the determination of the amount of any special taxes to
be levied, the costs of collecting any special taxes, and costs otherwise incurred in order to carry out
the authorized purposes of the District, together with any other expenses incidental to the acquisition,
construction, completion and inspection of the facilities
SPECIAL TAX
SECTION 6. It is hereby further proposed that, except where funds are otherwise available, a
special tax sufficient to pay for such facilities and related incidental expenses authorized by the
Community Facilities District Law, secured by recordation of a continuing lien against all non-
exempt real property in the District, will be levied annually within the boundaries of such District.
Under no circumstances will the special tax levied against any parcel used for private residential
purposes be increased as a consequence of delinquency or default by the owner of any other parcel
or parcels within the District by more than 10 percent. For further particulars as to the rate and
method of apportionment of the proposed special tax, reference is made to the attached and
incorporated Exhibit B, which sets forth in sufficient detail the method of apportionment to allow
each landowner or resident within the proposed District to clearly estimate the maximum amount
that such person will have to pay.
Resolution 2000-175
Page 3
The special taxes herein authorized, to the extent possible, shall be collected in the same
manner as ad valorem property taxes and shall be subject to the same penalties, procedure, sale and
lien priority in any case of delinquency as applicable for ad valorera taxes. Any special taxes that
may not be collected on the County tax roll shall be collected through a direct billing procedure by
the Treasurer.
PUBLIC HEARING
SECTION 7. NOTICE IS GIVEN THAT ON THE 11TH DAY OF JULY, 2000, AT THE HOUR
OF 6:00 O'CLOCK P.M., IN THE REGULAR MEETING PLACE OF THE CITY COUNCIL
BEING THE COUNCIL CHAMBERS, CITY HALL, LOCATED AT 276 FOURTH AVENUE,
CHULA VISTA, CALII~ORNIA, A PUBLIC HEARING WILL BE HELD WHERE THIS CITY
COUNCIL WILL CONSIDER THE ESTABLISHMENT OF THE PROPOSED DISTRICT, THE
PROPOSED METHOD AND APPORTIONMENT OF THE SPECIAL TAX, AND ALL OTHER
MATTERS AS SET FORTH IN THIS RESOLUTION OF INTENTION. THAT AT THE ABOVE-
MENTIONED TIME AND PLACE FOR PUBLIC HEARING ANY PERSONS INTERESTED,
INCLUDING TAXPAYERS AND PROPERTY OWNERS MAY APPEAR AND BE HEARD,
AND THAT THE TESTIMONY OF ALL INTERESTED PERSONS FOR OR AGAINST THE
ESTABLISHMENT OF THE DISTRICT, THE EXTENT OF THE DISTRICT, OR THE
FINANCING OF THE FACILITIES, WILL BE HEARD AND CONSIDERED. ANY PROTESTS
MAY BE MADE ORALLY OR IN WRITING. HOWEVER, ANY PROTESTS PERTAINING TO
THE REGULARITY OR SUFFICIENCY OF THE PROCEEDINGS SHALL BE IN WRITING
AND CLEARLY SET FORTH THE IRREGULARITIES AND DEFECTS TO WHICH THE
OBJECTION IS MADE. ALL WRITTEN PROTESTS SHALL BE FILED WITH THE CITY
CLERK OF THE CITY COUNCIL ON OR BEFORE THE TIME FIXED FOR THE PUBLIC
HEARING. WRITTEN PROTESTS MAY BE WITHDRAWN IN WRITING AT ANY TIME
BEFORE THE CONCLUSION OF THE PUBLIC HEARING.
IF A WRITTEN MAJORITY PROTEST AGAINST THE ESTABLISHMENT OF THE
DISTRICT IS FILED, THE PROCEEDINGS SHALL BE ABANDONED. IF SUCH MAJORITY
PROTEST IS LIMITED TO CERTAIN FACILITIES OR PORTIONS OF THE SPECIAL TAX,
THOSE FACILITIES OR THAT TAX SHALL BE ELIMINATED BY THE CITY COUNCIL.
ELECTION
SECTION 8. If, following the public heating described in the Section above, the City Council
determines to establish the District and proposes to levy a special tax within the District, the City
Council shall then submit the levy of the special taxes to the qualified electors of the District. If at
least twelve (12) persons, who need not necessarily be the same twelve (12) persons, have been
registered to vote within the District for each of the ninety (90) days preceding the close of the public
heating, the vote shall be by registered voters of the District, with each voter having one (1) vote.
Otherwise, the vote shall be by the landowners of the District who were the owners of record at the
close of the subject heating, with each landowners or the authorized representative thereof, having
one (1) vote for each acre or portion of an acre of land owned within the District.
Resolution 2000-175 _.,.
Page 4
NOTICE
SECTION 9. Notice of the time and place of the public hearing shall be given by the City Clerk
by causing the publication of a Notice of Public Hearing in the legally designated newspaper of
general circulation, such publication pursuant to Section 6061 of the Government Code, with such
publication to be completed at least seven (7) days prior to the date set for the public heating.
RESERVATION OF RIGHTS TO AUTHORIZE TENDER OF BONDS
SECTION 10. The City Council reserves to itself, in its capacity as the legislative body of the
District if formed, the right and authority to allow any interested owner of property within the
District, subject to the provisions of Government Code Section 53344.1 and to such conditions as
this City Council may impose, and any applicable prepayment penalties as may be described in the
bond indenture or comparable instrument or document, to tender to the Treasurer of the City of
Chula Vista, acting for and on behalf of the District, in full payment or part payment of any
installment of the special taxes or the interest or penalties thereon which may be due or delinquent,
but for which a bill has been received, any bond or other obligation secured thereby, the bond or
other obligation to be taken at par and credit to be given for the accrued interest shown thereby
computed to the date of tender.
ADVANCES OF FUNDS OR WORK-IN-KIND
SECTION 11. At any time either before or after the formation of the District, the City Council may
accept advances of funds or work-in-kind from any source, including, but not limited to, private
persons or private entities and may provide, by resolution, for the use of those funds or that work-in-
kind for any authorized purpose, including, but not limited to, paying any cost incurred by the City
in creating the District. The City may enter into an agreement, by resolution, with the person or
entity advancing the funds or work-in-kind, to repay all or a portion of the funds so advanced, or to
reimburse the person or entity for the value, or cost, whichever is less, of the work-in-kind, as
determined by the City Council. The City has entered into a Community Facilities District
Reimbursement Agreement with ACI Sunbow LLC to provide for such advances for the payment
of all non-contingent initial consulting and administration costs and expenses related to the
proceedings to consider the formation of the District and to subsequently authorize, issue and sell
bonds for the District. Such advances are subject to reimbursement pursuant to the terms of such
agreement. No such agreement shall constitute a debt or liability of the City.
Prepared by Approved as to form by
Resolution 2000-175
Page 5
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 6th day of June, 2000, by the following vote:
AYES: Councilmembers: Davis, Moot, Padilia, and Horton
NAYS: Councilmembers: None
ABSENT: Cotmcilmembers: Salas
Shirley Hortotl~, Mayor
ATTEST:
Susan Bigelow, City Cler~
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2000-175 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 6th day of June, 2000.
Executed this 6th day of June, 2000.
Susan Bigelow, City Clerk
_ Proposed List of Improvements
To be financed by
Community Facilities District No. 2000-1
Public Agency Proposed Improvement List Total Estimated Cost
A. CCV Telegraph Canyon Road $ 2,511,041.42
B. CCV Medical Center Rd/Brandywine $ 3,253,492.66
C. CCV East Palomar Street-Phases IA $ 1,672,569.21
D. CCV Off-site Sewer $ 1,034,980.40
E. CCV East Palomar Street - Phase IB $ 1,888,932.00
F. CCV Olympic Prkwy - W. of Brandywine $ 1,500,000.00
G. CCV East Palomar - Phases IC&IIA $ 1,632,940.00
H. CCV Paseo Ladera $ 2,783, 135.00
I. CCV Medical Center Court $ 432,110.00
J. CCV Public Facilities Dll~ $ 2.831,858.00
Total estimated costs: $ 19,541,158.69
CCV = City of Chula Vista
EXHIBIT B
_ RATE AND METHOD OF APPORTIONMENT FOR
CITY OF CHULA VISTA
COMMUNITY FACILITIES DISTRICT NO. 2000-1
(Sunbow II - Villages 5 thru 10)
A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels of Taxable Property
within the City of Chula Vista Community Facilities District No. 2000-1 CCFD No. 2000-1")
and collected each Fiscal Year commencing in Fiscal Year 2000-2001, in an amount determined
by the City Council through the application of the appropriate Special Tax for "Developed
Property," "Taxable Property Owner Association Property," and "Undeveloped Property" as
described below. All of the real property in CFD No. 2000-1, 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 hereinafter set forth have the following meanings:
"Acre or Acreage" means the ]and area Of an Assessor's Parcel as shown on an Assessor's
Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area
shown on the applicable final map, parcel map, condominium plan, record of survey, or
other recorded document creating or describing the parcel. If the preceding maps are not
available or are in conflict, the Acreage shall be determined by the City Engineer.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being
Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means the following actual or reasonably estimated costs
directly related to the administration of CFD No. 2000-1 including, but not limited to, the
following: the costs of computing the Special Taxes and preparing the annual Special Tax
collection schedules (whether by the City or designee thereof or both); the costs of
collecting the Special Taxes (whether by the County, the City, or otherwise); the costs of
remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal
counsel) in the discharge of the duties required of it under the Indenture; the costs to the
City, CFD No. 2000-1 or any designee thereof of complying with arbitrage rebate
requirements; the costs to the City, CFD No. 2000-1 or any designee thereof of complying
with City, CFD No. 2000-1 or obligated persons disclosure requirements associated with
applicable federal and state securities laws and of the Act; the costs associated with
preparing .Special Tax disclosure statements and responding to public inquiries regarding
the Special Taxes; the costs of the City, CFD No. 2000-1 or any designee thereof related to
an appeal of the Special Tax; and the costs associated with the release of funds from an
escrow account, if any. Administrative Expenses shall also include amounts estimated or
advanced by the City or CFD No. 2000-1 for any other administrative purposes of CFD No.
2000-1, including attorney's fees and other costs related to commencing and pursuing to
completion any foreclosure of delinquent Special Taxes.
City of Chula Vista May 28, 2000
Community Facilities District No. 2000-1 Page I
"Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an
assigned Assessor's Parcel number.
"Assessor's Parcel Map" means an official map of the County Assessor of the County
designating parcels by Assessor's Parcel number.
"Available Funds" means the balance in the reserve fund established pursuant to the terms
of the Indenture in excess of the reserve requirement as defined in such Indenture,
delinquent special tax payments, foreclosure proceeds, the portion of proceeds of Backup
Special Tax payments and Special Tax prepayments collected to pay interest on Bonds, and
other sources of funds available as a credit to the Special Tax Requirement as specified in
such Indenture.
"Backup Special Tax" means the Special Tax that is required to be paid as a condition
precedent to the issuance of building permits or recordation of final maps, as determined in
accordance with Section E below.
"Bonds" means any bonds or other debt (as defined in the Act), whether in one or more
series, issued by CFD No. 2000-1 under the Act.
"CFD Administrator" means an official of the City, or designee thereof, responsible for
determining the Special Tax Requirement and providing for the levy and collection of the
Special Taxes.
"CFD No. 2000-1" means City of Chula Vista Community Facilities District No. 2000-1
(Sunbow II - Villages 5 thin 10).
"City" means the City of Chula Vista.
"Council" means the City Council of the City, acting as the legislative body of CFD
No. 2000-1.
"County" means the County of San Diego.
"Developed Property" means, for each Fiscal Year, all Taxable Property, exclusive of
Taxable Property Owner Association Property, for which a building permit for new
construction was issued prior to March 1 of the prior Fiscal Year.
"Development Projection" means an annual calculation for each Planning Area of CFD
No. 2000-1 of: (i) the number and total Residential Floor Area of existing dwelling units of
Residential Property, and (ii) a projection of all future development, including the acreage,
projected number of residential dwelling units, projected Residential Floor Area, and an
absorption schedule for all future development within CFD No. 2000-1. The Development
Projection shall be dated as of March 1 and prepared each Fiscal Year by the Master
Developer. Upon submittal, the CFD Administrator shall review, modify if necessary, and
City of Chula Vista May 28, 2000
Community Facilities District No. 2000-l Page 2
approve the Development Projection. If the Development Projection is not received by the
CFD Administrator on or before Aprill, the CFD Administrator shall then prepare or cause
to be prepared a Development Projection.
"Final Residential Subdivision" means a subdivision of property created 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 residential building permits may be issued without further subdivision of such
property.
"Fiscal Year" means the period starting July 1 and ending on the following June 30.
"Indenture" means the indenture, fiscal agent agreement, trust agreement, resolution or
other instrument pursuant to which Bonds am issued, as modified, amended and/or
supplemented from time to time, and any instrument replacing or supplementing the same.
"Land Use Class" means any of the classes listed in Tables 1 and 2 of Section C.
"Master Developer" means the owner of the predominant amount of Undeveloped
Property in CFD No. 2000-1.
"Maximum Annual Special Tax" means the maximum annual Special Tax, determined in
accordance with the provisions of Section C below, that may be levied in any Fiscal Year
on any Assessor's Parcel of Taxable Property.
"Occupied Residential Property" means all Assessors' Parcels of Residential Property
which have closed escrow to an end user (homeowners).
"Outstanding Bonds" means all Bonds which remain outstanding.
"Planning Area(s)" means Village 5, Village 6, Village 7, Village 8, Village 9, and
Village 10 as shown on Tentative Tract No. 90-7 approved by the City on May 3, 1990.
Minor adjustments in the boundaries of the Planning Areas may be made by the CFD
Administrator to conform to the Final Residential Subdivision for these areas.
"Property Owner Association Property" means any property within the boundaries of
CFD No. 2000-1 owned by or dedicated to a property owner association, including any
master or sub-association.
"Proportionately" means for Developed Property that the ratio of the actual Special Tax
levy to the Maximum Annual Special Tax is equal for all Assessor's Parcels of Developed
Property within CFD No. 2000-1. For Undeveloped Property, "Proportionately" means
that the ratio of the actual Special Tax levy per Acre to the Maximum Annual Special Tax
per Acre is equal for all Assessor's Parcels of Undeveloped Property within CFD No.
2000-1.
City of Chula Vista May 28. 2000
Community Facilities District No. 2000-1 Page 3
· 1
"Public Property" means any property within the boundaries of CFD No. 2000-1 that is
used for rights-of-way or any other purpose and is owned by or dedicated to the federal
government, the State of California, the County, the City or any other public agency.
"Residential Property" means all Assessor's Parcels of Developed Property for which a
building permit has been issued for purposes of constructing one or more residential
dwelling units.
"Residential Floor Area" means all of the square footage of living area within the
perimeter of a residential structure, not including any carport, walkway, garage, overhang,
patio, enclosed patio, or similar area. The determination of Residential Floor Area shall be
made by reference to appropriate records kept by the City's Planning and Building
Department. Residential Floor Area will be based on the building permit(s) issued for each
dwelling unit prior to it being classified as Occupied Residential Property, and shall not
change as a result of additions or modifications made after such classification as Occupied
Residential Property.
"Special Tax" means the: (i) annual special tax to be levied in each Fiscal Year on each
Assessor's Pamel of Taxable Property to fund the Special Tax Requirement pursuant to
Section D, and (ii) the Backup Special Tax that may be required as a result of changes in
development.
"Special Tax Requirement" means that amount required in any Fiscal Year for CFD No.
2000-1 to: (i) pay annual debt service on all Outstanding Bonds as defined in Section A.;
(ii) pay periodic costs on the Bonds, including but not limited to, credit enhancement and
rebate payments on the Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts
required to establish or replenish any reserve funds for all Outstanding Bonds in
accordance with the Indenture; (v) and pay directly for acquisition and/or construction of
facilities, which are authorized to be financed by CFD No. 2000-1; (vi) less a credit for
Available Funds.
"State" means the State of California.
"Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD
No. 2000-1 which are not exempt from the Special Tax pursuant to law or Section F below.
"Taxable Property Owner Association Property" means all Assessor's Parcels of
Property Owner Association Property that are not exempt pursuant to Section F below.
"Trustee" means the trustee, fiscal agent, or paying agent under the Indenture.
"Undeveloped Property" means, for each Fiscal year, all Taxable Property not classified
as Developed Property or Taxable Property Owner Association Property.
City of Chula Vista May 28, 2000
Communi,ty Facilities District No. 2000-1 Page 4
'l 1
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, all Taxable Property within CFD No. 2000-1 shall be classified as
Developed Property, Taxable Property Owner Association Property, or Undeveloped
Property, and shall be subject to the levy of annual Special Taxes determined pursuant to
Sections C and D below.
C. MAXIMUM ANNUAL SPECIAL TAX RATE
1. Developed Property
The Maximum Annual Special Tax for each Assessor's Parcel classified as
Developed Property shall be the amount shown in Table 1 below:
TABLE 1
Maximum Annual Special Tax for Developed Property
Land Use
Class Description Maximum Annual Special Tax
1 Residential Property $.44 per square foot of Residential
Floor Area
2. Undeveloped Property and Taxable Property Owner Association Property
The Maximum Annual Special Tax for each Assessor's Parcel classified as
Undeveloped Property and Taxable Property Owner Association Property shall be
the amounts shown in Table 2 below:
TABLE 2
Maximum Annual Special Tax for Undeveloped Property and Taxable
Property Owner Association Property
Land Use
Class Description Maximum Annual Special Tax
2 Undeveloped Property $7,851 per Acre
3 Taxable Property
Owner Association $7,851 per Acre
Property
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2000-2001 and for each following Fiscal Year thereafter
until the 2035/2036 Fiscal Year as provided for in Section J, the Council shall determine
the Special Tax Requirement and shall levy the Special Tax until the amount of Special
City of Chula Vista May 28, 2000
Community Facilities District No. 2000-1 Page 5
Taxes equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal
Year as follows:
First: The Special Tax shall be levied Proportionately on each Assessor's Parcel of
Developed Property at up to 100% of the applicable Maximum Annual Special Tax to
satisfy the Special Tax Requirement.
Second: If additional monies are needed to satisfy the Special Tax Requirement after the
first step has been completed, the Special Tax shall be levied Proportionately on each
Assessor's Parcel of Undeveloped Property at up to 100% of the Maximum Annual Special
Tax for Undeveloped Property.
Third: If additional monies am needed to satisfy the Special Tax Requirement after the
first two steps have been completed, then the Special Tax shall be levied Proportionately on
each Assessor's Parcel of Taxable Property Owner Association Property at up to 100% of
the Maximum Annual Special Tax for Taxable Property Owner Association Property.
Notwithstanding the above, under no circumstances will the Special Tax levied against any
Assessor's Parcel of Occupied Residential Property be increased by more than ten (10%)
percent per year as a consequence of delinquency or default in the payment of Special
Taxes by the owner of any other Assessor's Parcel of CFD No. 2000-1.
" E. BACKUP SPECIAL TAX
The purpose for the development of a "Backup Special Tax" is to ensure that appropriate
revenues are generated to pay for the annual bond debt service obligations, in the event that
there are shortfalls in either the number of units or square-footages of the residential units.
The following definitions apply to this Section E:
"Actual Average Special Tax Per Unit" means, for each Planning Area, the Actual
Special Tax Revenue divided by the sum of the number of units included in any current
building permit application(s) plus the number of units within such Planning Area for
which building permits have previously been issued. Any building permits issued after an
Assessor's Parcel has been classified as Occupied Residential Property shall not be
included in determining the Actual Average Special Tax Per Unit.
"Actual Special Tax Revenue" means, for each Planning Area, the sum of the total
Residential Floor Area shown on any current building permit application(s) plus the total
Residential Floor Area from any previously issued building permits within the Planning
Area multiplied by the Maximum Annual Special Tax in Table 1. Any building permits
issued after an Assessor's Parcel has been classified as Occupied Residential Property shall
not be included in determining the Actual Special Tax Revenue.
City of Chula Vista May 28, 2000
Community Facilities District No. 2000-1 Page 6
"Backup Special Tax Fund" means, for each Planning Area, the fund or account
identified in the Indenture to hold Backup Special Tax payments received from property
owners within such Planning Area.
"Expected Annual Special Tax Revenue" means, with respect to each Planning Area, the
annual amount shown in the column so labeled in Table 3.
"Required Average Special Tax Per Unit" means, for each Planning Area, the Expected
Annual Special Tax Revenue divided by the total number of dwelling units expected to be
developed within the Planning Area, as determined by the CFD Administrator based on
tentative maps, Final Residential Subdivision maps, the Development Projection, and all
other relevant information available to the CFD Administrator.
"Share of Annual Debt Service" means, for each Planning Area, the maximum annual
debt service on the Bonds multiplied by that Planning Area's percentage of the total
Special Tax revenue, as shown in Table 3 below. A Planning Area's Share of Annual Debt
Service shall be adjusted to reflect any prepayments within that Planning Area.
1. Expected Development and AnnUal Special Tax Revenues
Table 3 below identifies the amount of development and Special Annual Tax
revenue that is currently expected from each Planning Area. Any Planning Area's
information in Table 3 may be revised by the CFD Administrator prior to the
issuance of Bonds without limitation.
TABLE 3
Expected Development and Special Tax Revenue by Planning Area
EXPECTED
TOTAL ANNUAL PERCENT
PLANNING EXPECTED NUMBER RESIDENTIAL SPECIAL OF TOTAL
AREAS PRODUCT TYPE OF UNITS FLOOR AREA TAX REVENUE
REVENUE
Village 5 Residential Property 144 units 403,200 $177,408 26.94%
Village 6 Residential Property 102 units 234,600 103,224 15.68%
Village 7 Residential Property 112 units 313,600 137,984 20.96%
Village 8 Residential Property 55 units 126,500 55,660 8.45%
Village 9 Residential Property 79 units 181,700 79,948 12.14%
Village 10 Residential Property 103 units 236,900 104,236 15.83%
TOTAL 595 units $658,460 100.00%
City of Chula Vista May 28, 2000
Community Facilities District No. 2000-1 Page 7
2. Calculation of Required Average Special Tax Per Unit
At the time the first building permit application for a Planning Area is submitted to
the City, the CFD Administrator shall calculate the Required Average Special Tax
Per Unit.
3. Backup Special Tax due to Loss of Units
If at any time after the Required Average Special Tax Per Unit has been calculated
initially for a Planning Area, the CFD Administrator determines that based on
tentative maps, Final Residential Subdivision maps, the Development Projection,
and any other available information there has been a reduction in the total expected
number of dwelling units within that Planning Area as shown in Table 3, then a
Backup Special Tax payment shall be required for each lost unit prior to the
issuance of any additional building permits or the recordation of any additional final
maps for such Planning Area.
4. Backup Special Tax due to Loss of Residential Floor Area
For Planning Areas that include Residential Property, before each building permit
(or group of permits) is issued, the CFD Administrator shall calculate the Actual
Average Special Tax Per Unit for the Planning Area. If the Actual Average Special
Tax Per Unit is less than the Required Average Special Tax Per Unit then a Backup
Special Tax payment will be required prior to issuance of the building permit(s)
included within the calculation.
5. Calculation of Backup Special Tax
The Backup Special Tax payment amount will be calculated using the prepayment
formula described in Section 1.1, with the following exceptions: (i) if the Backup
Special Tax is required as a result of Section E.3, then the amount used in
Paragraph No. 1 of the prepayment formula described in Section 1. 1 shall equal the
number of lost units, times the Required Average Special Tax Per Unit; (ii) if the
Backup Special Tax is required as a result of Section E.4, then the amount used in
Paragraph No. 1 of the prepayment formula described in Section 1. 1 shall equal the
difference between the Actual Average Special Tax Per Unit and the Required
Average Special Tax Per Unit times the sum of the number of units for which
permits are being issued plus the number of units within the Planning Area for
which building permits have previously been issued. The amount determined
pursuant to the preceding sentence shall be reduced by the balance in the Backup
Special Tax Fund that has been established for such Planning Area; (iii) in
Paragraph No. 5 of the prepayment formula described in Section L1, compute the '
amount needed to pay interest on the Bond Redemption Amount until the first
redemption date that occurs after five years from the date of the first Backup
Special Tax payment in the Planning Area; (iv) any Backup Special Tax payments
received for a Planning Area (less Administrative Fees and Expenses) shall be
City of Chula Vista May 28, 2000
Community Facilities District No. 2000-1 Page 8
deposited into the Backup Special Tax Fund for that Planning Area and disbursed
pursuant to the Indenture; and (v) the Maximum Annual Special Taxes applicable to
property within a Planning Area shall not be reduced or relieved as a result of
payment of the Backup Special Tax.
6. Use/Release of Backup Special Tax Payments
When a Planning Area reaches full buildout (i.e. all expected building permits have
been issued), the CFD Administrator shall calculate the actual Developed Property
Maximum Annual Special Tax revenues that will be generated from such Planning
Area. If the actual Developed Property Maximum Annual Special Tax revenues are
greater than or equal to 1.1 times that Planning Area's Share of Annual Debt
Service, the balance in the Backup Special Tax Fund shall be returned to the payer.
If Backup Special Taxes have been paid by more than one entity, the amount of
Backup Special Taxes rettirned to each payer shall be in proportion to the amount
paid by each entity. If the actual Developed Property Maximum Annual Special
Tax revenues are less than 1.1 times that Planning Area's Share of Annual Debt
Service, then to the extent necessary to generate 110% coverage, the balance in the
Backup Special Tax Fund shall be used to redeem bonds on the next available
redemption date unless the CFD Administrator reasonably determines, in its sole
discretion, that the actual Developed Property Maximum Annual Special Tax
revenues and the estimated Developed Property Maximum Annual Special Tax
revenues pursuant to the Development Projection that are expected to be generated
- from all Planning Areas in CFD No. 2000-1 are greater than or equal to 1.1 times
the maximum annual debt service on the Bonds. Any moneys remaining in Backup
Special Tax Fund after a required bond redemption, if any, shall be returned to the
payer. Notwithstanding the above, if a Planning Area has not reached full buildout
within five years after the first payment of Backup Special Taxes for such Planning
Area, then all moneys in the Backup Special Tax Fund shall be used to redeem
bonds on the next available redemption date.
F. EXEMPTIONS
No Special Tax shall be levied on: (i) the land area that lies outside the Planning Areas, and
(ii) up to 56.15 Acres of Property Owner Association Property and Public Property. Tax-
exempt status will be irrevocably assigned by the CFD Administrator in the chronological
order in which property becomes Property Owner Association Property or Public Property.
After the l'imit of 56.15 exempt Acres has been reached the Maximum Annual Special Tax
obligation for any additional Public Property shall be prepaid in full by the seller pursuant
to Section I.l, prior to the transfer/dedication of such property. Until the Maximum Annual
Special Tax obligation for any such Public Property is prepaid, the property shall continue
to be subject to the levy of the Special Tax as Undeveloped Property.
City of Chula Vista May 28, 2000
Communi.ty Facilities District No. 2000-1 Page 9
Property Owner Association Property that is not exempt from Special Taxes under this
section shall be subject to the levy of the Special Tax and shall be taxed Proportionately as
part of the third step in Section D above, at up to 100% of the Maximum Annual Special
Tax for Taxable Property Owner Association Property.
G. REVIEW/APPEAL COM~IITTEE
The Council shall establish as part of the proceedings and administration of CFD No. 2000-
1 a special three-member Review/Appeal Committee. Any landowner or resident who
feels that the amount of the Special Tax levied on their Assessor's Parcel is in error may
file a written notice with the Review/Appeal Committee appealing the amount of the
Special Tax levied on such Assessor's Parcel. The Review/Appeal Committee may
establish such procedures as it deems necessary to undertake the review of any such appeal.
The Review/Appeal Committee shall interpret this Rate and Method of Apportionment and
make determinations relative to the annual administration of the Special Tax and any
landowner or resident appeals, as herein specified. The decision of the Review/Appeal
Committee shall be final and binding as to all persons.
H. MANNER OF COLLECTION
The annual Special Tax shall be collected in the same manner and at the same time as
· ordinary ad valorem property taxes; provided, however, that CFD No. 2000-1 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 Assessor's Parcels which are delinquent in the payment of Special
Taxes.
Tenders of Bonds may be accepted for payment of Special Taxes upon the terms and
conditions established by the Council pursuant to the Act. However, the use of Bond
tenders shall only be allowed on a case-by-case basis as specifically approved by the
Council.
I. PREPAYMENT OF SPECIAL TAX
The following definition applies to this Section I:
"Outstanding Bonds" means all previously issued Bonds 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
Maximum Annual Special Taxes.
City of Chula Vista May 28, 2000
Community Facilities District No. 2000-1 Page 10
1. Prepayment in Full
The Maximum Annual Special Tax obligation may only be prepaid and permanently
satisfied by an Assessor's Parcel of Developed Property, Undeveloped Property for which a
building permit has been issued, or Public Property. The Maximum Annual Special Tax
obligation applicable to such Assessor's Parcel may be fully prepaid and the obligation of
the Assessor's 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 such Assessor's Parcel at the time of prepayment. An owner of an Assessor's
Parcel intending to prepay the Maximum Annual Special Tax obligation shall provide the
CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of
such written notice, the CFD Administrator shall notify such owner of the prepayment
amount of such Assessor's Parcel. The CFD Administrator may charge a reasonable fee for
providing this figure.
The Prepayment Amount (defined below) shall be calculated as summarized below
(capitalized terms as defined below):
Bond Redemption Amount
plus Redemption Premium
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
Total: equals Prepayment Amount
As of the proposed date of prepayment, the Prepayment Amount (defined below) shall be
calculated as follows:
Paragraph No.:
1. For Assessor's Parcels of Developed Property, compute the Maximum Annual
Special Tax for the Assessor's Parcel to be prepaid. For Assessor's Parcels of
Undeveloped Property to be prepaid, compute the Maximum Annual Special Tax for
that Assessor's Parcel as though it was already designated as Developed Property,
based upon the building permit which has already been issued for that Assessor's
Parcel. For Assessor's Parcels of Public Property to be prepaid, compute the
Maximum Annual Special Tax for that Assessor's Parcel using the Maximum Annual
Spec!al Tax for Undeveloped Property.
2. Divide the Maximum Annual Special Tax computed pursuant to paragraph 1 by the
sum of the total expected Special Tax revenues in Table 3 in Section E., excluding
any Assessor's Parcels which have been prepaid.
ci .ty of Chula Vista May 28, 2000
Communi.ty Facilities District No. 2000-1 Page 11
3. Multiply the quotient computed pursuant to paragraph 2 by the Outstanding Bonds to
compute the amount of Outstanding Bonds to be retired and prepaid (the "Bond
Redemption Amount").
4. Multiply the Bond Redemption Amount computed pursuant to paragraph 3 by the
applicable redemption premium, if any, on the Outstanding Bonds to be redeemed
(the "Redemption Premium").
5. 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.
6. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel.
7. Determine the Special Taxes levied on the Assessor's Parcel in the current Fiscal
Year which have not yet been paid.
8. Compute the amount the CFD Administrator reasonably expects to derive from the
reinvestment of the Prepayment Amount less the Administrative Fees and Expenses
from the date of prepayment until the redemption date for the Outstanding Bonds to
be redeemed with the prepayment.
9. Add the amounts computed pursuant to paragraphs 5 and 7 and subtract the amount
computed pursuant to paragraph 8 (the "Defeasance Amount").
10. Verify the administrative fees and expenses of CFD No. 2000-1, including the costs
of computation of the prepayment, the costs to invest the prepayment proceeds, the
costs of redeeming Bonds, and the costs of recording any notices to evidence the
prepayment and the redemption (the "Administrative Fees and Expenses").
11. 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.
12. If any capitalized interest for the Outstanding Bonds will not have been expended at
the time of the first interest and/or principal payment following the current Fiscal
Year, a capitalized interest credit shall be calculated by multiplying the quotient
computed pursuant to paragraph 2 by the expected balance in the capitalized interest
fund after such first interest and/or principal payment (the "Capitalized bgerest
CrediF').
City of Chula Vista May 28, 2000
Community Facilities District No. 2000-1 Page 12
13. The Maximum Annual Special Tax prepayment is equal to the sum of the amounts
computed pursuant to paragraphs 3, 4, 9, and 10, less the amounts computed pursuant
to paragraphs 11 and 12 (the "PrepaymentAmount").
14. From the Propayment Amount, the amounts computed pursuant to paragraphs 3, 4, 9,
11, and 12 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 10 shall be retained by CFD No. 2000-
1.
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 7 above, the CFD Administrator shall remove the current Fiscal Year's
Special Tax levy for such Assessor's Parcel from the County tax rolls. With respect to any
Assessor's Parcel that is prepaid, the Council 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 Assessor's Parcel, and the obligation of such Assessor's Parcel to
pay the Special Tax shall cease.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the
amount of Maximum Annual Special Taxes that may be levied on Taxable Property within
CFD No. 2000-1 both prior to and after the proposed prepayment is at least 1.1 times the
maximum annual debt service on all Outstanding Bonds.
Tenders of Bonds in prepayment of Maximum Annual Special Taxes may be accepted
upon the terms and conditions established by the Council pursuant to the Act. However,
the use of Bond tenders shall only be allowed on a case-by-case basis as specifically
approved by the Council.
2. Prepayment in Part
The Maximum Annual Special Tax on an Assessor's Parcel of Developed Property or an
Assessor's Parcel of Undeveloped Property for which a building permit has been issued
may be partially prepaid. The amount of the prepayment shall be calculated as in Section
1.1; except. that a partial prepayment shall be calculated according to the following formula:
PP=(PExF)+A
City of Chula Vista May 28, 2000
Community Facilities District No. 2000-1 Page 13
These terms have the following meaning:
PP = the partial prepayment
PE = the Prepayment Amount calculated according to Section 1.1, minus Administrative
Expenses and Fees pursuant to Step 10.
F = the percent by which the owner of the Assessor' s Parcel(s) is partially prepaying the
Maximum Annual Special Tax.
A= the Administrative Expenses and Fees pursuant to Step 10.
The owner of an Assessor's Parcel who desires to partially prepay the Maximum Annual
Special Tax shall notify the CFD Administrator of (i) such owner's intent to partially
prepay the Maximum Annual Special Tax, (ii) the percentage by which the Maximum
Annual Special Tax shall be prepaid, and (iii) the company or agency that will be acting as
the escrow agent, if applicable. The CFD Administrator shall provide the owner with a
statement of the amount required for the partial prepayment of the Maximum Annual
Special Tax for an Assessor's Parcel within 30 days of the request and may charge a
reasonable fee for providing this service.
With respect to any Assessor's Parcel that is partially prepaid, the City shall (i) distribute
the funds remitted to it according to Paragraph 14 of Section 1.1, and (ii) indicate in the
records of CFD No. 2000-1 that there has been a partial prepayment of the Maximum
Annual Special Tax and that a portion of the Maximum Annual Special Tax equal to the
outstanding percentage (1.00 - F) of the remaining Maximum Annual Special Tax shall
continue to be authorized to be levied on such Assessor's Parcel pursuant to Section D.
J. TERM OF MAXIMUM ANNUAL SPECIAL TAX
The Maximum Annual Special Tax shall be levied commencing in Fiscal Year 2000-2001
to the extent necessary to fully satisfy the Special Tax Requirement for a period no longer
than the 2035-2036 Fiscal Year.
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City of Chula Vista May 28, 2000
Community Facilities District No. 2000-1 Page 14