HomeMy WebLinkAboutReso 2000-234
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- RESOLUTION NO. 2000-234
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RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA, FORMING AND ESTABLISHING
COMMUNITY FACILITIES DISTRICT NO. 2000-1 (SUNBOW II
- VILLAGES 5 THROUGH 10) AND AUTHORIZING
SUBMITTAL OF LEVY OF SPECIAL TAXES TO THE
QUALIFIED ELECTORS
WHEREAS, the City Council of the City ofChula Vista, California (the "City Council"),
has previously declared its intention and ordered the preparation of a Special Tax Report relating to
the initiation of 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 Govemment Code of the State of California (the "Act") and the City of
Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by
the City ofChula 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, notice of a public hearing relating to the establishment of the District, the extent
of the District, the financing of certain public facilities and all other related matters has been given,
l and a Community Facilities District Report, as ordered by this City Council, has been presented to
this City Council and has been made a part of the record of the hearing on the Resolution of
Intention to establish such District; and
WHEREAS, all communications relating to the establishment of the District, the proposed
public facilities and the proposed rate and method of apportionment of special tax have been
presented, and it has further been determined that a majority protest as defined by law has not been
received against these proceedings; and
WHEREAS, inasmuch as there have been less than twelve (12) registered voters residing
within the territory ofthe District for at least the preceding ninety (90) days, the authorization to levy
special taxes within the District shall be submitted to the landowners ofthe District, such landowners
being the qualified electors as authorized by law.
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
SECTION I. RECITALS The above recitals are all true and correct.
SECTION 2. DETERMINATIONS It is hereby determined by this City Council that:
A. All prior proceedings pertaining to the formation of the District were valid and taken
in conformity with the requirements ofthe law, and specifically the provisions of the
Community Facilities District Law, and that this finding and determination is made
pursuant to the provisions of Govemment Code Section 53325.1.
l B. The written protests received, if any, do not represent a majority protest as defined
by the applicable provisions ofthe Community Facilities District Law and, therefore,
the special tax proposed to be levied within the District has not been precluded by
Resolution 2000-234 --",
Page 2
majority protest pursuant to Section 53324 of the Government Code of the State of
California.
C. The District as proposed conforms with the City ofChula Vista Statement of Goals
and Policies Regarding the Establishment of Community Facilities Districts, as
amended.
D. Less than twelve (12) registered voters have resided within the territory of the
District for each of the ninety (90) days preceding the close of the public hearing,
therefore, pursuant to the Community Facilities District Law the qualified electors
of the District shall be the landowners of the District as such term is defined in
Government Code Section 53317(f) and each landowner who is the owner of record
as of the close of the public hearing, or the authorized representative thereof, shall
have one vote for each acre or portion of an acre ofland that she or he owns within
the District.
E. The time limit specified by the Community Facilities District Law for conducting an
election to submit the levy of the special taxes to the qualified electors of the District
and the requirements for impartial analysis and ballot arguments have been waived
with the unanimous consent of the qualified electors ofthe District.
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F. The City Clerk, acting as the election official, has consented to conducting any
required election on a date which is less than 125 days following the adoption of any
resolution forming and establishing the District.
SECTION 3. COMMUNITY FACILITIES DISTRICT REPORT The Community Facilities
District Report for the District (the "Report"), as now submitted by McGill Martin Self, Inc., Special
Tax Consultant, shall stand as the report as required pursuant to Government Code Section 53321.5
for all future proceedings and all terms and contents are approved as set forth therein.
SECTION 4. NAME OF DISTRICT The City Council does hereby establish and declare the
formation of the District known and designated as "COMMUNITY FACILITIES DISTRICT NO.
2000-1 (SUNBOW II - VILLAGES 5 THOUGH 10)."
SECTION 5. BOUNDARIES OF DISTRICT The boundaries and parcels of land in which the
public facilities are to be provided and on which special taxes wìll be levied in order to pay the costs
and expenses for such public facilities are generally described as follows:
All property within the boundaries of COMMUNITY FACILITIES DISTRICT NO. 2000-1
(SUNBOW II - VILLAGES 5 THROUGH 10), as shown on a boundary map as previously
approved by this legislative body, such map designated by the name of this District, a copy
of which is on file in the Office of the City Clerk. The boundary map of the proposed
District has been filed pursuant to Sections 3111 and 3113 of the Streets and Highways Code
of the State of California in the Office of the County Recorder ofthe County of San Diego,
at Page 36 of Book 34 of the Book of Maps of Assessment and Community Facilities ~
Districts for such County.
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- Resolution 2000-234
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SECTION 6. DESCRIPTION OF FACILITIES A general description of the public facilities which
this legislative body is authorized by law to construct, own or operation, which are the facilities to
be financed under these proceedings, are generally described in Exhibit A attached hereto and
incorporated herein by this reference.
The facilities as above-described are facilities which the City Council 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 the
costs and expenses charged to this District represent the fair share costs ofthe facilities attributable
to this District.
For a full and complete description of such facilities, reference is made to the Report, a copy
of which is on file in the Office of the City Clerk. In addition to financing the above described
facilities, the financing of those incidental expenses described in the Report are also approved and
authorized.
SECTION 7. SPECIAL TAX Except where funds are otherwise available a special tax, secured
by recordation of a continuing lien against all non-exempt real property in the proposed District, is
hereby authorized, subject to voter approval, to be levied within the boundaries of such District. For
-1 particulars as to the rate and method of apportionment ofthe proposed special tax, reference is made
to the attached and incorporated Exhibit "B" (the "Special Tax Formula"), which sets forth in
sufficient detail the method of apportionment to allow each landowner or resident within the
proposed District to estimate the maximum amount that such person wìll have to pay. Such special
tax shall be utilized to pay directly for the previously described facilities, to pay debt service on
authorized bonds to assist in financing such facilities, to replenish any reserve fund established for
such bonds, and to pay the costs of administering the bonds and the District.
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 valorem taxes; provided, however, the
District may utilize a direct bìlling procedure for any special taxes that cannot be collected on the
County tax roll or may, by resolution, elect to collect the special taxes at a different time or in a
different manner if necessary to meet its financial obligations.
Under no circumstances wìll the special tax to be 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.
This legislative body further authorizes that special taxes may be prepaid and satisfied by
payment of the prepayment amount calculated pursuant to the Special Tax Formula.
Upon recordation of a Notice of Special Tax Lien pursuant to Section 3114.5 of the Streets
and Highways Code of the State of California, a continuing lien to secure each levy of the special
- I tax shall attach to all non-exempt real property in the District and this lien shall continue in force and
Resolution 2000-234 --",
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effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in
accordance with law or until collection of the tax by the legislative body ceases.
SECTION 8. PREPARATION OF ANNUAL TAX ROLL The name, address and telephone
number of the office, department or bureau which wìll be responsible for preparing annually a
current roll of special tax levy obligations by Assessor's parcel number and which shall be
responsible for estimating future special tax levies pursuant to Section 53340.1 ofthe Government
Code ofthe State of California, are as follows:
Engineering Department
City ofChula Vista
276 Fourth Avenue
Chula Vista, CA 92010
(619) 691-5258
SECTION 9. SUBSTITUTION FACILITIES The description of the public facilities, as set forth
above, is general in its nature. The final nature and location of such facilities wìll be determined
upon the preparation of final plans and specifications therefor. Such final plans may show substitutes
in lieu of, or modification to, the above described facilities and any such substitution shall not be a
change or modification in the proceedings as long as the facilities provide a service substantially
similar to that as set forth in this Resolution. -,
SECTION 10. APPEALS AND INTERPRETATION PROCEDURE Any landowner or resident
who feels that the amount or formula of the special tax is in error may file a notice with the Agency
appealing the levy of the special tax. An appeals panel on members, as appointed by the Agency,
wìll then meet and promptly review the appeal, and if necessary, meet with the applicant. If the
findings of the appeals panel verify that the special tax should be modified or changed, a
recommendation at that time will be made to the City Council and, as appropriate, the special tax
levy shall be corrected, and if applicable in any case, a refund shall be granted.
Interpretations may be made by the City Council by Resolution for purposes of clarifying
any vagueness or ambiguity as it relates to any category, zone, rate or definition contained in the
Special Tax Formula.
SECTION 11. ELECTION This City Council herewith submits the levy ofthe special tax to the
qualified electors of the District, such electors being the landowners in the District, with each
landowner having one (I) voter for each acre or portion thereof ofland which he or she owns within
the District.
This legislative body hereby further directs that the ballot proposition relating to the levy of
the special tax be combined and consolidated with the proposition relating to the incurring of a
bonded indebtedness. This Resolution shall not constitute the notice of the election, and the
Resolution declaring the necessity to incur the bonded indebtedness shall constitute the notice of the
election relating to the combined proposition on the authorization to incur a bonded indebtedness
and authorization for the special tax levy and the proposition to establish an appropriations limit for ~.
the District.
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- Resolution 2000-234
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Prepared by Approved as to form by
µ I~ - . ~~~~
JO~P. Lippitt ~
Jo . Kaheny 0
Pub ic Works Director Attorney
PASSED, APPROVED, and ADOPTED by the City Council ofthe City ofChula Vista,
California, this II th day of July, 2000, by the following vote:
AYES: Councilmembers: Davis, Moot, Padìlla, Salas, and Horton
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
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ATTEST: Shirley Horto~ ayor
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Susan Bigelow, City Clerk
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. 2000-234 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 11 th day of July, 2000.
Executed this 11 'h day of July, 2000.
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Susan Bigelow, City Cl
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ATTACµMENT
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ArTACHMENT ':B
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COMMUNITY FACILITIES DISTRICT
SPECIAL TAX REPORT
MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982
COMMUNITY FACILITIES DISTRICT
NO. 2000-1 SUNBOW II - VILLAGES 5 THROUGH 10
The City of Chula Vista
276 Fourth Avenue
Chula Vista, California 91910
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McGill Martin Self, Inc.
310 Third Avenue, Suite B-6
Chula Vista, California 91910
July 3, 2000
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TABLE OF CONTENTS
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Page
I. INTRODUCTION ............................................................................... I
II. PROJECT DESCRIPTION..................................................................... 1
III. DESCRIPTION AND ESTIMATED COST OF PROPOSED FACILITIES.. . . . . . . . . . . . . . . . . . .. 2
A. Description of Proposed Public Improvements................................. 2
B. Estimated Cost of Proposed Public Improvements ......... ...... ............... 3
IV. BONDED INDEBTEDNESS AND INCIDENTAL EXPENSES.................................... 3
A. Projected Bond Sales ......... ... ...... ................. ....... ...... ............ ... 4
B. Incidental Bond Issuance Expenses to be Included in the Proposed Bonded
Indebtedness ........................................................................ 4
C. Incidental Expenses to be Included in the Annual Levy of Special Taxes... 4
V. RATE AND METHOD OF ApPORTIONMENT OF THE SPECIAL TAX....................... 5
A. Explanation for Special Tax Apportionment.................................... 5
B. Maximum Annual Special Tax Rates ............................................ 6
C. Backup Special Tax................................................................ 7
D. Accuracy ofInformation ......... ............... ........... ....... ............ .... 7
VI. BOUNDARIES OF COMMUNITY FACILITIES DISTRICT................................... 7
VII. GENERAL TERl\1ISAND CONDITIONS ............ ............ ......... ........ .... .......... 7
A. Substitution Facilities.............................................................. 7
- B. Appeals.............................................................................. 7
EXHIBITS
Exhibit A Rate and Method of Apportionment
Exhibit B Assigned Maximum Special Tax Rates
Exhibit C Boundary Map
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I. INTRODUCTION
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WHEREAS, the City of Chula Vista did, pursuant to the provision of the Mello-Roos
Community Facilities Act of 1982, being Chapter 2.5, Part 1, Division 2, Title 5 of the
Govemment Code of the State of California (hereinafter referred to as the "Act"), and
specifically Section 53321.5 thereof, expressly order the filing of a written "Report" with the
legislative body of the proposed Community Facilities District. This Community Facilities
District being Community Facilities District No. 2000-1 (Sunbow II - Villages 5 through 10)
shall hereinafter be referred to as:
"CFD No. 2000-1"; and
WHEREAS, the Resolution Ordering and Directing the Preparation of a Report for Proposed
Community Facilities District No. 2000-1 did direct that said Report generally contain the
following:
FACILITIES: A full and complete description of the public facilities the acquisition of
which is proposed to be financed through the CFD.
COST ESTIMATE: A general cost estimate setting forth costs of acquiring such facilities.
SPECIAL TAX: 'Further particulars and documentation regarding the rate and method of
,- apportionment for the authorized special tax.
NOW, THEREFORE, I, John Lippitt P.E., the Director of Public Works of the City of Chula
Vista, and the appointed responsible officer directed to prepare this Special Tax Report or cause
the Report to be prepared pursuant to the provisions of the Act, do hereby submit this Report.
II. PROJECT DESCRIPTION
CFD No. 2000-1 encompasses approximately 140.03 gross acres of land located in the portion of
the south San Diego City of Chula Vista known as Sunbow n. Of this acreage, approximately
83.88 acres are expected to be developed by merchant builders. Currently, Centex homes has
purchased Villages 5 & 6 (4/3/00) and will build approximately 246 single family homes. Of the
246 single family homes, Centex has an approved Subdivision Tract Map No. 13917 that will
allow the construction of 144 lots that have a minimum lot size of 6,000 square feet and 102 lots
with a minimum size of 5,000 square feet.
The remaining 349 single-family homes will be built as part of Villages 7, 8, 9 & 10. The
Villages 7, 8, 9 & 10 have an approved Tentative Master Map (CVT 90-07) that will allow lots
to range between 5,000 to 6,000 square feet. These lots will be built out as other merchant
builders purchase units and/or Sunbow proceeds with construction.
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Community Facilities District No. 2000~1 Page 1
Sunbow ll- Villages 5 through 10 July 3. 2000
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At buildout, it is expected that CFD No.2000-1 will consist of approximately 595 Single Family
- Residences, 10 acres for a school site, as shown on the Tentative Master Map No. CVT 90-7.
The Single Family Uses are anticipated to generate 1,496,500 square feet of residential building
square footage. The total exempt acreage for the project, including the 10% contingency factor
is 56.15 acres.
CFD No. 2000-1 (Sunbow II - Villages 5 through 10) is also divided into the following three
zones:
· Zone 1: applies only to Developed Residential Property;
· Zone 2: applies only to Undeveloped Property; and
· Zone 3: applies only to Taxable Property, and Owner Association Property.
III. DESCRIPTION AND ESTIMA TED COST OF PROPOSED FACILITIES
Á. Description of Proposed Public Improvements
A community facilities district may provide for the purchase, construction, expansion, or
rehabilitation of any real or tangible property, including public facilities and
infrastructure improvements with an estimated useful life of five (5) years or longer,
which is necessary to meet increased demands placed upon local agencies as a result of
development or rehabilitation occuning within the community facilities district. In
- addition, a community facilities district may pay in full all amounts necessary to
eliminate any fixed special assessment liens or to pay, repay, or defease any obligation to
payor any indebtedness secured by any tax, fee, charge, or assessment levied within the
area of the community facilities district.
The facilities described in this Report are all facilities which the legislative body creating
CFD No. 2000-1 is authorized to own, construct, or finance, and which are required, in
part, to adequately meet the needs of CFD No. 2000-1. In addition, the facilities meet the
criteria for authorized public facilities set forth in the City's Statement of Goals and
Policies regarding the establishment of Community Facilities Districts. The actual
facilities described herein are those currently expected to be required to adequately meet,
in part, the needs of CFD No. 2000-1. Because the actual needs of CFD No. 2000-1
arising as development progresses therein may differ from those currently anticipated,
CFD No. 2000-1 reserves the right to modify the actual facilities proposed herein to the
extent CFD No. 2000-1 deems necessary, in its sole discretion to meet those needs. The
Special Taxes 1 required to pay for the construction or financing of said facilities will be
apportioned as described in the Rate and Method of Apportionment (RMA) of the Special
Tax for CFD No. 2000-1 (Sun bow II - Villages 5 through 10) (see Exhibit A).
Proceeds of the proposed bonded indebtedness of CFD No. 2000-1 will be used to
finance backbone streets and associated improvements (i.e., grading, sewer, streets,
landscaping, utilities, etc.), and public facilities DIP Improvements.
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Community Facilities District No. 2000-1 Page 2
Sunbow [[- Villages 5 through IO August 1, 2000
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Following is a general description of the proposed facilities:
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· Telegraph Canyon Road
· Medical Center Road! Brandywine
· East Palomar - Phase IA
· Off-site sewer improvements
· East Palomar - Phase ill
· Olympic Parkway - West of Brandywine
· East Palomar - Phases IC & IIA
· Paseo Ladera and Medical Center Court
· Public Facilities DIF
1 Please note that all capitalized terms used herein, unless otherwise indicated, shall have the meanings defined in
the Rate and Method of Apportionment prepared for CFD No. 2000-1.
B. Estimated Cost of Proposed Public Improvements
The facilities and the estimated costs herein are subject to review and confirmation. The
costs listed in Table I, are estimates only, based upon current construction and land costs
and actual costs may differ from those estimates herein. Based on the current CFD No.
2000-1 cost estimates of approximately $19,541,159.00, only approximately 7.4 million
is expected to! be financed with CFD bond proceeds and the remaining construction costs
born by the developers.
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TABLE 1
Facilities Improvements Total Estimated Cost
Telegraph Canyon Road $ 2,511,041.42
Medical Center Road! Brandywine $ 3,253,492.66
East Palomar - Phase IA $ 1,672,569.21
Off-site sewer improvements $ 1,034,980.40
East Palomar - Phase ill $ 1,888,932.00
Olympic Parkway - West of Brandywine $ 1,500,000.00
East Palomar - Phases IC & IIA $ 1,632,940.00
Paseo Ladera $ 2,783,135.00
Medical Center Court $ 432,110.00
Public Facilities DIF $ 2,831,858.00
Totals = $19,541,159.00
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Community Facilities District No. 2000-1 Page 3
Sunbow ll- Villages 5 through 10 August 1.2000
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IV. BONDED INDEBTEDNESS AND INCIDENTAL EXPENSES
A. Proiect Bond Sales
The current bond amount estimate for CFD No. 2000-1 is $7.4 million via a single bond
sale, which will provide approximately 6.4 million for construction costs. The bonds
issued by CFD No. 2000-1 will meet the terms and conditions of special tax bonds set
forth in the City's Statement of Goals and Policies Regarding the Establishment of
Community Facilities Districts.
B. Incidental Bond Issuance Expenses to be Included in the Proposed Bonded
Indebtedness
Pursuant to Section 53345.3 of the Act, bonded indebtedness may include all costs and
estimated costs incidental to, or connected with, the accomplishment of the purpose for
which the proposed debt is to be incurred, including, but not limited to, the costs of legal,
fiscal, and financial consultant fees; bond and other reserve funds; discount fees; interest
on any bonds of the district due and payable prior to the expiration of one year from the
date of completion of the facilities, not to exceed two years; election costs; and all costs
of issuance of the bonds, including, but not limited to, fees for bond counsel, costs of
-- obtaining credit ratings, bond insurance premiums, fees for letters of credit, and other
credit enhancement costs, and printing costs. The reserve fund is estimated to be the
maximum allowable under Federal Tax Law. All other incidental bond issuance
expenses are estimated at 4 percent of the face amount of the bonds.
C. Incidental Expenses to be Included in the Annual Levy of Special Taxes
Pursuant to Section 53340 of the Act, the proceeds of any special tax may only be used to
pay, in whole or part, the cost of providing public facilities, services and incidental
expenses. As defined by the Act, incidental expenses include, but are not limited to, the
cost of planning and designing public facilities to be financed, including the cost of
environmental evaluations of those facilities; the costs associated with the creation of the
district, issuance of bonds, determination of the amount of taxes, collection of taxes,
payment of taxes, or costs otherwise incurred in order to carry out the authorized
purposes of the district; any other expenses incidental to the construction, completion,
and inspection of the authorized work; and the retirement of existing bonded
indebtedness. While the actual cost of administering CFD No. 2000-1 may vary, it is
anticipated that the amount of special taxes, which can be collected, will be sufficient to
fund at least $50,000 in annual administrative expenses prior to buildout of the project.
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Community Facilities District No. 2000~1 Page 4
Sunbow II - Villages 5 through 10 August J. 2000
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V. RATE AND METHOD OF APPORTIONMENT OF THE SPECIAL TAX
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All of the property located within CFD No. 2000-1, unless exempted by law, shall be taxed for
the purpose of providing necessary facilities to serve CFD No. 2000-1. Pursuant to Section
53325.3 of the Act, the tax imposed "is a Special Tax and not a special assessment, and there is
no requirement that the tax be apportioned on the basis of benefit to any property." The Special
Tax "may be based on benefit received by parcels of real property, the cost of making facilities
or authorized services available to each parcel or other reasonable basis as determined by the
legislative body," although the Special Tax may not be apportioned on an ad valorem basis
pursuant to Article XIIIA of the California Constitution.
As shown in Exhibit A, the amended Rate and Method of Apportionment provides information
sufficient to allow each property owner within CFD No. 2000-1 to estimate the maximum annual
Special Tax he or she will be required to pay. Sections A through C, below, provide additional
information on the Rate and Method of Apportionment of the Special Tax for CFD No. 2000-1.
A. Explanation for Special Tax Apportionment
When a community facilities district is formed, a Special Tax may be levied on each
parcel of taxable property within the CFD to pay for the construction, acquisition and
rehabilitation of public facilities, to pay for authorized services or to repay bonded
indebtedness Ùr other related expenses incurred by CFD No. 2000-1. This Special Tax
must be apportioned in a reasonable manner; however, the tax may not be apportioned on
- an ad valorem basis.
When more than one type of land use is present within a community facilities district,
several criteria may be considered when apportioning the Special Tax. Generally, criteria
based on building square footage, acreage, and land use are selected, and categories based
on such criteria are established to differentiate between parcels of property. These
categories are a direct result of the developer's projected product mix, and are reflective
of the proposed land use types within that community facilities district. Specific Special
Tax levels are assigned to each land use class, with all parcels within a land use class
assigned the same Special Tax rate.
The Act does not require the Special Taxes to be apportioned to individual parcels based
on benefit received. However, in order to insure fairness and equity, benefit principles
have been incorporated in establishing the Special Tax rates for CFD No. 2000-1.
The major assumption inherent in the Special Taxes rates set forth in the Rate and
Method of Apportionment is that the level of benefit received from the proposed public
improvements is a function of land use. This assumption is borne out through an
examination of commonly accepted statistical measures.
For example, III measunng average weekday vehicle trip-ends, the Institute of
Transportation Engineer's 1995 Trip Generation report identifies land use as the primary
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Community Facilities District No. 2000-1 Page 5
Sunbow Il- Villages 5 through 10 August I, 2000
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determinant of trip-end magnitude. Commercial land uses typically generate more trip-
~ ends than do single family residential land use. Similarly, larger single family detached
dwellings typically generate a greater number of trip-ends than do smaller single family
detached homes, and therefore, will tend to received more benefit from road grading,
road landscaping and road improvements.
Drainage and flood control requirements generally vary with the amount of impervious
ground cover per parcel. It follows that larger homes which have more impervious
ground cover will create relatively more drainage flow than smaller homes.
CFD No. 2000-1 (Sunbow II - Villages 5 through 10) is divided into three district zones,
described as:
~ Zone 1: applies only to Developed Property;
~ Zone 2: applies only to Undeveloped Property; and
~ Zone 3: applies only to Taxable Property, and Owner Association Property.
The Land Use Class Categories of Taxation have been established for CFD No. 2000-1.
The categories are defined as follows:
~ Residential Developed Parcels (single and multifamily residences) are taxed on the
square footage of the building;
~ Undeveloped Parcels are taxed based on acreage of the parcel; and
"~ ~ The Taxable Property Owners Association Property Parcels are taxed based on the
acreage of the parcel, the same as Undeveloped Property.
Based on the types of public facilities that are proposed for CFD No. 2000-1 and the
factors described above, the Special Taxes assigned to specific land uses are generally
proportionate to the relative benefits received by them, and, accordingly, the Special
Taxes in CFD No. 2000-1 can be considered fair and reasonable.
B. Maximum Annual Special Tax Rates
Exhibit B lists the Maximum Annual Special Tax rates that may be levied in each zone,
against Residential Property, and Undeveloped Property within CFD No. 2000-1. Exhibit
B also lists the Maximum Special Tax Rates for Taxable Property Owner Association
Property within CFD No. 2000-1 and the Backup Special Tax (described below) of the
applicable land use category.
The City Council will annually determine the actual amount of the Special Tax levy
based on the method described in RMA and subject to the maximum Special Tax rates
contained in Exhibit B. The City will levy a Special Tax to the extent necessary,
sufficient to meet the Special Tax Requirement.
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Community Facilities District No. 2000-1 Page 6
Sunbow Il- Villages 5 through 10 August J. 2000
c!
c. Backup Special Tax
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Payment of a one-time Backup Special Tax may be required prior to the issuance of
building permits or recordation of a final map. Table 3 in the RMA identifies the amount
of Special Tax revenue and development that is currently expected from each of the
Villages. If the CFD Administrator determines that the Special Tax revenue for a
Villages will be reduced as a result of a reduction in the expected number of units, acres,
or building square feet in such planning area, then a Backup Special Tax payment will be
required.
The amount of the Backup Special Tax payment will be calculated pursuant to Section E
of Exhibit A.
D. Accuracv of Information
In order to establish the Maximum Annual Special Tax rates and the Backup Special Tax
as set forth in the Rate and Method of Apportionment for CFD No. 2000-1, McGill
Martin Self, Inc. has relied on information including, but not limited to absorption, land-
use types, building square footage, and net taxable acreage which were provided to
McGill Martin Self, Inc. by others. McGill Martin Self, Inc. has not independently
verified such data and disclaims responsibility for the impact of inaccurate data provided
by others, if ,any, on the Rate and Method of Apportionment for CFD No. 2000-1,
including the inability to meet the financial obligations of CFD No. 2000-1.
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VI. BOUNDARIES OF COMMUNITY FACILITIES DISTRICT
The boundaries of CFD No. 2000-1 include all land on which the Special Taxes may be levied.
A map of the area included within CFD No. 2000-1 is provided as Exhibit C.
VII. GENERAL TERMS AND CONDITIONS
A. Substitution Facilities
The description of the public facilities, as set forth herein, are general in their nature. The
final nature and location of improvements and facilities will be determined upon the
preparation of final plans and specifications. The final plans may show substitutes, in
lieu or modifications to the proposed work in order to accomplish the work of
improvement, and any such substitution shall not be a change or modification in the
proceedings as long as the facilities provide a service and are of a type substantially
similar to that as set forth in this Report.
B. Appeals
Any landowner who feels that the amount of the Special Tax is in error may file a notice
with CFD No. 2000-1, appealing the levy of the Special Tax pursuant to the procedure
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Community Facilities District No. 2000-1 Page 7
Sunbow ll- Villages 5 through 10 August J, 2000
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specified in Exhibit A. As appropriate a representative of CFD No. 2000-1 will then
- review the appeal and, if necessary, meet with the applicant. If the findings of the
representative verify that the amount of the Special Tax should be modified or changed,
then, as appropriate, the Special Tax levy shall be corrected.
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Community Facilities District No. 2000-1 Page 8
Sunbow ll- Villages 5 through 10 August !, 2000
-7
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EXHmIT A
CITY OF CHULA VISTA
COMMUNITY FACILITIES DISTRICT NO. 2000-1
(Sunbow II - Villages 5 through 10)
RATE AND METHOD OF APPORTIONMENT
?-.JI
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RATE AND METHOD OF APPORTIONMENT FOR
CITY OF CHULA VISTA
COMMUNITY FACILITIES DISTRICT NO. ZOOO-1
(Sun bow 11- ViUages 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 ("CFD No. 2000-1")
and collected each Fiscal Year commencing in Fiscal Year 2000-2001, in an amount detennined
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 land 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, 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 ofCFD 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 ITom 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 ofCFI) No.
2000-1, including attorney's fees and other costs related to commencing and pursuing to
completion any foreclosure of delinquent Special Taxes.
City ofChuJo Visto May J, 2000
Community Facilities District No. ;1000-1 Page 1
9 -cJcI.-.
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"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 defmed 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 offinal 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 - VìIlages 5 thru 10).
"City" means the City ofChula Vista.
"Council" means the City Council of the City, acting as the legislative body of CFD
No. 2000- I.
"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 I 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 I and prepared each Fiscal Year by the Master
Developer. Upon submittal, the CFD Administrator shall review, modify if necessary, and
City ofChulo Vlsto May J, 2000
Community Focilllies District No. 2000-1 Page 2
9-~3
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approve the Development Projection. If the Development Projection is not received by the
CFD Administrator on or before Aprìll, 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 1ine 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 are issued, as modified, amended and/or
supplemented ITom 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, VìlIage 6, Village 7, Village 8, Village 9, and
Vìl1age 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 ofChula Vista May 1,2000
Community Facílities Distric( No. 2000-1 Page 3
9-d I./-
I
"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 construcûng 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 wìl1 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 Parcel of Taxable Property to fund the Special Tax Requirement pursuant to
Section D, and (iì) 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.
"Sute" 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 £Tom the Special Tax pursuant to law or Section F below.
"Ta.xable 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 ofChula Vista May J, 2000
Community Faciliäes District No. 2000-1 Page 4
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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 detennined 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!
Maximum Annual S ecial Tax for Develo
Land Use
Class Descri tion Maximum Annual S ecia1 Tax
I 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
Pro Owner Association Pro ert
Land Use
Class Maximum Annua1 S ecia1 Tax
·
2 $7851 er Acre
3
$7,851 per Acre
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, tbe Council shall determine
the Special Tax Requirement and shall levy the Special Tax until the amount of Special
City ofChu/a Vista May 1, 20(}()
Community Facilities Distriçt No. 2000-/ Page 5
<=1-;)0
I
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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 are 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"10 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 ofCPD 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 rrom 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 ofChula Vista May I, 2000
Community Facilities District No. 2000-1 Page 6
9-c) 7
j
"Backup Special Tax Fund" means, for each Planning Area, the fund or account
identified in the Indenture to hold Backup Special Tax payments received ITom property
owners witlún such P1anning Area.
"Expected 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
Special Tax Revenue divided by the total number of dwellìng units expected to be
developed within the Planning Area, as determined by the cm Administrator based on
tentative maps, Final Residential Subdivision maps, the Development Projection, and all
other relevant information available to the cm Administrator.
"Share of Annual Debt Sen'Ì(e" 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 Special Tax Revenues
Table 3 below identifies the amount of development and Special Tax reVenue that is
currently expected ITom 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
Villa e 5 Residential Pro ert 144 units 403,200 $177,408 26.94%
ViII e6 Residential Pro 102 units 234,600 103,224 15.68%
ViH e7 Residential Pro e 112 units 313 600 137,984 20.96%
.Villa e8 Residential Pro rt 55 units 126 500 55,660 8.45%
Viii e9 Residential Pro 79 units 181 700 79,948 12.14%
VìII e 10 Residential Pro e 103 units 236,900 104,236 15.83%
TOTAL 5 units 6 D·
Z. Calculation of Required Average Special Tax Per Unit
City ofChula Vìsta May 1, 2000
Community Facilities District No. 2000-1 Page?
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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, then Ii 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 I.l, 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. I of the prepayment fonnula 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 Ii result of Section E.4, then the amount used in
Paragraph No. I of the prepayment fonnula 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 1.1, compute the
amount needed to pay interest on the Bond Redemption Amount until the first
redemption date that occurs after five years rrom 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
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
City ofChuJa Vista May 1, 2000
Community Facilities District No. 2000-1 Page 8
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property within a Planning Area shall not be reduced or relieved as a result of
payment of the Backup Special Tax.
6. UselRelease of Backup Special Tax Payments
·
When a Planning Area reaches full build out (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 returned 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. AIly 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 flTst 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
(iì) 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 limit 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 1.1, 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.
Property Owner Association Property that is not exempt rrom Special Taxes under this
section shall be subject to the levy of the Special Tax and shall be taxed Proportionately as
·
City ofChula Vista May 1, 2000
Community Facilities District No. 2000-1 Page 9
'1-30
/
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 C0Ml\111 UE
The Council shall establish as part of the proceedings and administration ofCFD 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 persous.
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.
I. 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
City ofChula Vista May 1. 2000
Communily Facilities District No. 2000-1 Page /0
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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 CllDitalized 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
Special Tax for Undeveloped Property.
2. Divide the Maximum Annual Special Tax computed pursuant to paragraph I 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.
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").
·
City ofChula Vista May J, 2000
Community Facilities District No. 2000-1 Page JI
'7 ::;o.;¡..
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'(
,
5. Compute the amount needed to pay interest on the Bond Redemption Amount ti-om
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 ti-om the
reinvestment of the Prepayment Amount less the Administrative Fees and Expenses
ti-om 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 Amounf').
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), jf 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 ti-om 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 wìll 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 Interest
Credit').
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 II and 12 (the "Prepayment Amounf').
14. From the Prepayment 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.
City ofChula Vista May I. 2000
Community Facilities District No. 2000-1 Page 12
9-35
.. .. __._.____...._____._____.____._n
~ I
·
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 wìll be
retained in the appropriate fund established under the Indenture to be used with the next
· prepaymem 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 ITom 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 prepaymem 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 prepaymem 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
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 percem by which the owner ofthe 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
· City ofChula Vista May 1. 2000
Community Facilities District No. 2000-[ Page 13
9 -_-3'"
í
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
stJItement 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 (ñ) 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 shaU 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.
City ofChula Vista May I, 2000
Community Faci/iiies District No. 2000-1 Page 14
'7 - 3S'
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1.,/
·
EXHIBIT B
CITY OF CHULA VISTA
COMMUNITY FACILITIES DISTRICT NO. 2000-1
(Sunbow II - VìlIages 5 through 10)
· MAXIMUM SPECIAL TAX RATES FOR DEVELOPED PROPERTY.
UNDEVELOPED PROPERTY AND TAXABLE PROPERTY OWNER
ASSOCIATION PROPERTY
Maximum Annual Special Tax for Developed Property in Zone 1
Community Facilities District No. 2000-1
Land Use Class Description Maximum
1 Residential Property $.44 per square foot of
Residential Floor Area
·
Maximum Annual Special Tax for Undeveloped Property in Zone 2
Community Facilities District No. 2000-1
Land Use Class Description Maximum Annual Special
Tax
2 Undevelo $7,851 per Acre
Maximum Annual Special Tax for Developed Property in Zone 3
Community Facilities District No. 2000-1
·
Land Use Class Descri ption Maximum Annual Special
Tax
3 Taxable ProP. Owner Association $7,851 per Acre
·
·
C;-3~
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EXHIBIT C
CITY OF CHULA VISTA
COMMUNITY FACIUTIES DISTRICT NO. 2000-1
(Sunbow II - Villages 5 through 10)
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