HomeMy WebLinkAboutOrd 2003-2915ORDINANCE NO. 2915
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING ORDINANCE NO. 2881 AND
AUTHORIZING THE LEVY OF A SPECIAL TAX IN
IMPROVEMENT AREA B OF COMMUNITY FACILITIES
DISTRICT NO. 06-I (EASTLAKE - WOODS, VISTAS AND
LAND SWAP) PURSUANT TO AN AMENDED RATE AND
METHOD OF APPORTIONMENT OF SPECIAL TAX
WHEREAS, the City Council of the City of Chula Vista, California (the "City Council'),
has initiated proceedings, held a public hearing, conducted an election and received a favorable
vote from the qualified electors authorizing the levy of separate special taxes in separate
improvement areas of a community facilities district, all as authorized 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 California (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 is designated as
Community Facilities District No. 06-I (Eastlake - Woods, Vistas And Land Swap) (the
"District") and the improvemem areas therein are designated as Improvement Area A and
Improvement Area B (individually, an "Improvement Area" and collectively, the "Improvement
Areas'); and
WHEREAS, the City Council, acting as the legislative body of the District, previously
enacted Ordinance No. 2881 to authorize the levy of special taxes within Improvement Area A
and Improvement Area B pursuant to a separate rate and method of apportionment applicable to
each respective Improvement Area; and
WHEREAS, the City Council, has initiated proceedings, held a public hearing, conducted
an election and received a favorable vote from the qualified electors of Improvement Area B
authorizing the levy of special taxes therein pursuant to an amended rate and method of
apportionment thereof.
The City Council of the City of Chula Vista, California, acting as the legislative body of
Community Facilities District No. 06-1 (EastLake - Woods, Vistas and Land Swap), does hereby
ordain as follows:
SECTION 1. This City Council does, by the passage of this ordinance, authorize the levy of
special taxes on taxable properties located in Improvement Area B pursuant to the Amended
Rate and Method of Apportionment of Special Taxes as set forth in Exhibit "A" attached hereto
and incorporated herein by this reference (the "Amended Rate and Method'').
SECTION 2. This City Council, acting as the legislative body of the District, is hereby further
authorized, by resolution, to annually determine the special tax to be levied within Improvement
Area B for the then current tax year or future tax years; provided, however, the special tax to be
levied in Improvement Area B shall not exceed the maximum special tax authorized to be levied
pursuant to the Amended Rate and Method.
I
Ordinance 2915
Page 2
SECTION 3. The special taxes herein authorized to be levied within Improvement Area B, 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 billing
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.
SECTION 4. The special taxes authorized to be levied in Improvement Area B shall be secured
by the lien imposed pursuant to Sections 3114.5 and 3115.5 of the Streets and Highways Code of
the State of California, which lien shall be a continuing lien and shall secure each levy of the
special tax. The lien of the special tax shall continue in force and effect until the special tax
obligation is prepaid, permanently satisfied and canceled in accordance with Section 53344 of
the Government Code of the State of California or until the special tax ceases to be levied by the
City Council in the manner provided in Section 53330.5 of said Government Code.
SECTION 5. This ordinance shall, upon becoming effective, amend and supercede any and all
provisions of Ordinance No. 2881 pertaining to the authorization to levy special taxes within
Improvement Area B of the District. All provisions of Ordinance No. 2881 pertaining to the
authorization to levy special taxes within Improvement Area A of the District shall remain in full
force and effect.
SECTION 6. This ordinance shall be effective thirty (30) days after its adoption. Within fifteen
(15) days after its adoption, the City Clerk shall cause this ordinance to be published in a
newspaper of general circulation in the City pursuant to the provisions of Government Code
Section 36933.
Prepared by
Approved as to form by
Ordinance 2915
Page 3
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 3rd day of June, 2003, by the following vote:
AYES:
NAYS:
ABSENT:
Councilmembers:
Councilmembers:
Councilmembe~s:
Rindone, Salas, McCann, and Padilla
None
Davis
ATI'EST:
Stephen Pad'llla, Mayor
Susan Bigelow, City CleFt
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
Ordinance No. 2915 had its first reading at a regular meeting held on the 27th day of May, 2003
and its second reading and adoption at a regular meeting of said City Council held on the 3rd day
of June, 2003.
Executed this 3rd day of June, 2003.
Susan Bigelow, City Cleffi
I
F~IBIT A
AMENDED RATE AND METHOD OF APPORTIONMENT
FOR CITY OF CHULA VISTA
COMMUNITY FACILITIES DISTRICT NO. 06-I
IMPROVEMENT AREA B
(EastLake - "Land Swap")
A Special Tax as hereinafter defined shall be levied on each Assessor's Parcel of Taxable
Property within the City of Chala Vista Community Facilities District No. 06-I, Improvement
Area B ("Improvement Area B") and coUected each Fiscal Year commencing in Fiscal Year
2003-2004 in aa amount determined by the City Council through the application of the
appropriate Special Tax for "Developed Property," and "Undeveloped Property" as described
below. All of thc Taxable Property in Improvement Area B, unless exempted by law or by the
provisi°ns 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 meaning:
"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 Subdivision Map, parcel map, condom~um plan, record of
survey, or other recorded document creating or describing the parcel. If the preceding
maps for a land area are not available, the Acreage of such land area 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 S~ate of California~
"Administrative EXpenses" means the actual or reasonably estimated costs directly
related to the ~minlstration of Improvement Area B including, but not limited to, the
folinwing: the costs of computing the Special Taxes and preparing the annual Special Tax
collection schedules (whether by tho 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-06-! or any designee thereof of complying with arbitrage rebate requirements;
the costs to the City, CFD-06-I or any designee therenf of providing continuing disclosure;
the costs associated with preparing Special Tax disclosure statements and responding to
public inquiries regar6ing the Special Taxes; the costs of the City, CFD-06-I or any
designee thereof related to any appeal of the levy or application 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-06-I for
any other administrative purposes of Improvement Area B, including but not limited to
CiO, of Chula V~ta
Community Facilities District No. 06-1, Improvement Area B
I
attorney's fees and other costs related to commencing and pursuing to completion
foreclosure of delinquent Special Taxes.
"Assessor's Parcel" means a lot or pamel 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.
"Assign~l Special Tax" means the Special Tax for each Land Use Category of Developed
Property as determined in accordance with Section C.l.a.
"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 not required to fund the Special Tax Requirement for any
preceding Fiscal Year, 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 Backup Special Tax amount set forth in Section C.l.b.
"Bonds" means any bonds or other debt (as defined in the Act), whether in one or more
series, issued by CFD-06-I for Improvement Area B under the Act.
"Bond Year" means a one-year period beginning on September 2nd in each year and
ending on September 1st in the following year. Unless defined differently in the applicable
Indenture.
"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-06-I means City of Chula Vista, Community Facilities District No. 06-1.
"City" means the City of Chula Vista.
"Commercial Property" means ali Assessors' Parcels of Developed Property, for which a
building permit(s) was issued for a non-residential use, excluding Community Purpose
Facility Property.
"Commaaity Purpose Facility Property" means all Assessors' Parcels which are
classified as community purpose facilities and meet the requirements of City of Chula Vista
Ordinance No. 2452.
"Council" means the City Council of the City, acting as the legislative body of CFD-06-I.
City of Chula Vista
Community Facilitie~ District No. 06-L Improvement Area B
"County" means the Comity of San Diego.
"Developed Property" means, for each Fiscal Year, all Taxable Property for winch a
building permit for new construction was issued prior to March 1 of thc prior Fiscal Year.
"Exempt Property" means property not subject to the Special Tax due to its
classification as either Public Property, Property Owner Association Property
Community Purpose Facility Property.
"Final Subdivision Map" means a subdivision of property, created by recordation of
a Final Subdivision Map, parcel map or lot line adju~h~xent, 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 thc period starting July I and ending on the following June 30.
"Improvement Area B" means Improvement Area B of CFD No. 06-I known as thc
"Land Swap".
"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 from time to time, and any instrument replacing or supplementing the same.
"Land Use Class" means any of the classes listed in Table 1 of Section C.
"Lot(s)" means an individual legal lot created by a Final Subdivision Map for which a
building permit for residential construction has been or could be issued.
"Master Developer" means the owner of the predominant amount of Undeveloped
Property in Improvement Area B.
"Maximum Annual Special Tax" means the maximum annual Special Tax, determined in
accordance with the provisions of Section C, which may be levied in any Fiscal Year on
any Assessor's Parcel of Taxable Property.
"Outstanding Bonds" mean all Bonds, which remain outstanding as defined in the
Indenture.
"Property Owner Association Property" means any property within the boundaries of
Improvement Area B 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 Assigned Special Tax or the Backup Special Tax is equal for all Assessors'
City of Chula Vista
Community Facilitie~ District No. 06-I, Improvement Area
I
Parcels of Developed Property within Improvement Area B. For Undeveloped Proper
"Proportionately" means that the ratio of the actual Special Tax levy per Acre to
Maximum Annual Special Tax per Acre is equal for all Assessor's Parcels of Undeveloped
Property within Improvement Area B.
"Public Property" means any property within the boundaries of Improvement Area B that
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 Assessors' 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 the CFD Administrator by reference to appropriate records kept by the City's
Building Department. Residential Floor Area for a residential structure will be based on
the building permit(s) issued for such structure.
"Special Tax" means the annual special tax to be levied in each Fiscal Year on each
Assessor's Parcel of Taxable Property to fund the Special Tax Requirement. ~
"Special Tax Requirement" means that amount of Special Tax revenue required in any
Fiscal Year for Improvement Area B to: (i) pay annual debt service on all Outstanding
Bonds (as defined in Section A) due in the Bond Year beginning in such Fiscal Year; (ii)
pay other periodic costs on Outstanding Bonds, including but not limited to, credit
enhancement and rebate payments on Outstanding 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; and (v) pay directly for acquisition
and/or eous~'uction of public improvements which are authorized to be financed by CFD-
06-I provided that the inclusion of such amount does not cause an increase in the levy of
Special Tax on the Undeveloped Property for Improvement Area B; less (vi) a credit for
Available Funds.
"State" means the State of Califorma.
"Taxable Property" means all of the Assessor's Parcels within the boundaries of
CFD-06-I, Improvement Area B that are not exempt fi-om the Special Tax pursuant to law
or Section E below.
"Trustee" means the trustee, fiscal agent, or paying agent trader the Indenture.
"Undeveloped Property" means, for each Fiscal year, all Taxable Property not classifi~~
as Developed Property.
CiO, of Chula Vista
Community Facilities Distn'ct No. 06-1, Improvement Area B
EastLake - Land Swan
Pace 4
"Zone 3" means a specific geographic area as depicted in Exhibit A
attachccl hereto.
"Zone 4' means a specific geographic area as depicted in Exhibit A
attached hereto.
B. ASSIGNlV[ENT TO LAND USE CATEGORIES
Each Fiscal Year, all Assessor's Parcels of Taxable Property within, Improvement Area B
shall be (a) categorized as being located in either Zone 3 or Zone 4, (b) classified as
Developed Prope~y or Undeveloped Property and (c) shall be subject to the levy of annual
Special Taxes determined pursuant to Sections C and D below. Furthermore, all Developed
Property shall then be classified as Residential or Commercial Property.
C. MAXIMUM ANNUAL SPECIAL TAX RATE
Developed Property
The Maximum Annual Special Tax for each Assessor's Parcel of Residential
Property or Commercial Property shall be the greater of (1) the Assigned Special
Tax described in Table I below or (2) the Backup Special Tax computed pursuant to
b. below.
a. Assit, ned Soecial Tax
The Assigned Special Tax for each Assessor's Pan:el of Developed Property is
shown in Table 1.
TABLE 1
Assigned Special Tax for Developed Property within Zone 3 and Zone 4
L.nd Use
Cl,ss Description
1 Residential Property
Commercial Property
Assigned Special Tax
$0.74 per square foot of
Residential Floor Area
$6,000 per Acre
b. Backun Soecial Tax
When a Final Subdivision Map is recorded within Zone 3 or Zone 4, the Backup
Special Tax for Assessor's Parcels of Developed Property classified as Residential
Propert~ or Commercial Property shall be determined as follows:
City of Chula Vista
Community Facilities District tVo. 06-1, Improvement Area B
I
For each Assessor's Parcel of Residential Property or for each Assessor's Parcel of
Undeveloped Property tO be classified as Residential Property upon its development
within the Final Subdivision Map area, the Backup Special Tax shall be the rate per
Lot calculated according to the following formula:
Zone 3
$20,563 x A
L
Zone 4
$6,667 x A
L
The terms above have the following meanings:
B = Backup Special Tax per Lot in each Fiscal Year.
A = Acreage classified or to be classified as Residential Property in
such Final Subdivision Map.
L -~ Lots in the Final Subdivision Map which are classified or to be
classified as Residential Property.
For each Assessor's Parcel of Commercial Property or for each Assessor's Parcel of
Undeveloped Property to be classified as Commercial Property within the Final
Subdivision Map area, the Backup Special Tax shall be determined by multiplying
$20,563 for Zone 3 and $6,667 for Zone 4 by the total Acreage of each Assessor's
Parcels of the Commercial Property and Undeveloped Property to be classified as
Commercial Property within the Final Subdivision Map area.
Notwithstanding the foregoing, if Assessor's Parcels of Residential Property,
Commercial Property or Undeveloped Property for which the Backup Special Tax
has been determined are subsequently changed or modified by recordation of a new
or amended Final Subdivision Map, then the Backup Special Tax applichble to such
Assessor's Parcels shall be recalculated to equal the amount of Backup Special Tax
that would have been generated if such change did not take place.
Community Facilities District No. 06-I, Improvement Area
EastLake - Land Swa~
Page 6
t
Undeveloped Property
Thc Maximum Annual Special Tax for each Assessor's Parcel classified, as
Undeveloped Property shall be $20,$63 per Acre for Zone 3 and $6,667 per Acre
for Zone 4.
METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2003-04 and for each following Fiscal Year, the Council
shall det~..,iqe the Special Tax Requirement and shall levy the Special Tax until the
amount of Special Taxes eq.~l.q the Special Tax Requirement. The Special Tax shall be
levied each Fiscal Year as follows:
F.irst: The Special Tax shall be levied Proportionately on ~ach Assessor's Parcel of
Developed Property within Zone 3 and Zone 4 at a rate up to 100% of the applicable
Assigned Special Tax to satisfy thc Special Tax Requirement.
Second: If additional monies are needed to satisfy the Special Tax Requirement ~er the
first step has been completed, the Special Tax shall be levied Proportionately on each
Assessor's Parcel of Undeveloped Property within Zone 3 and Zone 4, excluding any
Assessor's Parcels classified as Undeveloped Property pursaaut to Section E, at a rate 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, the Special Tax to be levied on each Assessor's Parcel
of Developed Property whose Maximum Annual Special Tax is derived by the application
of the Backup Special Tax shall be increased Proportionately from the Assigned Special
Tax up to the Maximum Annual Special Tax for each such Assessor's Parcel.
Fourth: If additional monies are needed to satisfy the Special Tax Requirement aRer the
first three steps have been completed, then the Special Tax shall be levied Proportionately
on each Assessor's Parcel classified as Undeveloped Property pursuant to Section E at a
rate up to 100% of the Maximum Annual Special Tax for Undeveloped Property.
Notwithstanding the above, under no circumstances will the Special Tax levied against any
Ass~sor's Parcel of Residential Property be increased by mom than ten percent per year as
a consequence of delinquency or default in thc payment of Special Taxes by the owner of
any other Assessor's Parcel.
CommuniO~ Facilities District No. 06-1, Improvement Area B
I
E. EXEMPTIONS
The CFD Administrator shall classify the following Assessor Parcel(s) as exempt
property: (i) Public Property, (ii) Property Owner Association Property, (iii)
Community Purpose Facility Property, and (iv) Assessor's Parcels with public or
utility easements making impractical their utilization for other than thc purposes
set forth in the easement; provided, however, that no such classification shall
reduce the sum of all Taxable Property to less than 36.50 Acres in Zone 3 and
52.00 Acres in Zone 4. Assessor's Parcels which cannot be classified as exempt
property because such classification would reduce the Acreage of all Taxable
Property to less than 36.50 Acres in Zone 3 and 52.00 Acres in Zone 4 will be
classified as Undeveloped Property and shall be taxed as such. Tax-exempt status
for purposes of this paragraph will be assiloaed by the CFD Administrator in the
chronological order in which property becomes exempt property.
The Maximum Annual Special Tax obligation for any property which would be
classified as Public Property upon its transfer or dedication to a public agency but
which cannot be classified as exempt property as described in paragraph 1 of
Section F shall be prepaid in full by the seller pursuant to Section I. 1, prior to the
transfer/dedication of such property to such public agency. Until the Maximum
Annual 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.
F. 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 shall first consult with the CFD Administrator regarding such
error. If following such consultation, the CFD Administrator determines that an error has
occurred; the CFD Administrator may amend the amount of the Special Tax levied on such
Assessor's Parcel. If following such consultation and action (if any by the CFD
Administrator), the landowner or resident believes such error still exists, such person may
file a written notice with the City Clerk of the City appealing the amount of the Special Tax
levied on such Assessor's Parcel. Upon the receipt of any such notice, the City Clerk shall
forward a copy of such notice to the City Manager who shall establish as part of the
proceedings and administration of CFD-06-I and a special three-member Review/Appeal
Committee. 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.
City of Chula Vista
Community Facilities District No. 06-1, Improvement Area B
G. MANNER OF COLLECTION
Thc annual Special Tax shall bc collected in thc same rammer and ut the same time as
orcYmary ad valorem prope~y taxes; provided, however, that CFD-06-I, Improvement Area
B may directly bill the Special Tax, may collect Special Taxes at a different time or in a
differellt manner if necessary to meet its financial obligations, and may covenant to
foreclose and may actually foreclose on Assessor's Parcels of Taxable Property that 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.
H. PREPAYMENT OF SPECIAL TAX
The following definition applies to this Section H:
"CFI) Public Facilities" means those public facilities authorized to be financed by CF1)-
06-I Improvement Area B.
"CFI) Public Facilities Costs" mc-nnn either $12.3 million, or such lower number as shall
be dct~uuined either by (a) the CFI) Administrator as sufficient to Omancc the CFD Public
Facilities, or Co) the Council concurrently with a covenant that it will not issue any more
Bonds to be secured by Special Taxes levied under this Rate and Method of
Apportionment.
"Construction Fund" means an account specifically identified in the Indenture to hold
funds which arc currently available for expenditure to acquire or construct the CFD Public
Facilities.
"Future Facilities Costs" means the CFD Public Facilities Costs minus that (a) portion of
the CFI) Public Facilities Costs previously funded (i) from the proceeds of all previously
issued Bonds, (ii) from interest earnings on the Construction Fund actually earned prior to
the date of prepayment and (/ii) directly fi"om Special Tax revenues and CO) the amount of
thc proeceds of all prev/oualy issued Bonds then on deposit/n thc Construction Fund.
"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.
Community Facilia'e~ District No. 06-1, Improvement/lrea B
[
1. Prepayment in Full
The Maximum Annual Special Tax obligation may only be prepaid and p~.~anently
satisfied for an Assessor's Parcel of Developed Property, Undeveloped Propen'y 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, however 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 CFI) Administrator shall notify such owner of the
Prepayment amount of such Assessor's Parcel. The CFD Administrator may charge a
re~onable fee for provldLng this figure.
The Prepayment Amount (defined below) shall be calculated as summarized below
(capitalized terms as defined below):
Bond Redemption Amount
plus
plus
plus
plus
less
less
Total: equals
Redemption Premium
Future Facilities Amount
Defeasance Amount
Prepayment Fees and Expenses
Reserve Fund Credit
Canitalized Interest Credit
Prepayment Amount
As of the proposed date of prepayment, the Prepayment Amount (defined below) shall be
calculated as follows:
S~p No.:
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 for which a building permit has been issued 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 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.
o
Divide the Maximum Annual Special Tax computed pursuant to paragraph 1 by the
sum of the total expected Maximum Annual Special Tax revenues which may be
levied within Improvement Area B excluding any Assessors Parcels for which th
Maximtun Annual Special Tax obligation has been previously prepaid.
Community Facilities District No. 06-I, Improvement Area B
Ev~tLal~ - Land,Vwa~
10.
Multiply the quotient computed pursuant to paragraph 2 by the principal amount of
the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired
and prepaid (the "Bond Redemption Amount").
Multiply the Bond Redemption Amount computed pursuant to paragraph 3 by the
applicable redemption premium on the next possible Bond call date, if any, on the
Outstanding Bonds to be redeemed (the "Redemption Premium").
ff all the Bonds authorized to be issued for Improvement Area B have not been
issued, compute the Future Facilities Costs.
Multiply the quotient computed pursuant to paragraph 2 by the amount determined
pursuant to paragraph 5 to compute the amount of Future Facilities Costs to be
allocated to such Assessor's Parcel (the "Future Facilities Amount'9.
Compute the amount needed to pay interest on the Bond Re&nnption Amount from
the first bond inte~st and/or principal payment date following the current Fiscal
Year until the earliest redemption date for the Outstanding Bonds.
Confirm that no Special Tax delinquencies apply to such Assessor's Parcel.
Determine the Special Taxes levied on the Assessor's Parcel in the current Fiscal
Year, which have not yet been paid.
Determine the fees and expenses of CFD-06-I, including but not limited to, the costs
of computation of the prepayment, the costs to invest the prepayment proceeds, the
costs of redeeming Bonds from the proceeds of such prepayment, and the cost of
recording any notices to evidence the prepayment and the redemption (the
"Prepayment Fees and Expenses").
11.
12.
13.
Compute the amount the CFI) Administrator reasonably expects W derive from the
rehavestment of the prepayment amount less the Prepayment Fees and Expenses, as
determined pursuant to step I0, from the date of prepayment until the redemption
date for the outstanding bonds to be redeemed with the prepayment.
Add the amounts computed pursuant to paragraphs 7 and 9 and subtract the amount
computed pursuant to paragraph 11 (the "Defeasance Amount").
The reserve fund credit (the "Reserve Fund Credit") shall equal the lesse~ 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 subWacting 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.
City of Chula Vista
Community Facilities District No. 06-1, Improvement ~lrea B
I
14.
If any capitalized interest for the Outstanding Bonds will not have been expended a, ''/
the time of the first interest 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 payment (the "Capitalized Interest Credit").
15.
The Maximum Annual Special Tax prepayment is equal to the sum of the mounts
computed pursuant to paragraphs 3, 4, 6, 10, and 12, less the amounts computed
pursuant to paragraphs 13 and 14 (the "Prepayment Amount").
16.
From the Prepayment Amount, the amounts computed pursuant to paragraphs 3, 4,
12, 13, and 14 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-06-I. The
amount computed pursuant to paragraph 6 shall be deposited in the Construction
Fund.
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 determinea
under paragraph 9 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
Improvement Area B 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
Assessor's Parcel of Undeveloped Property for which a building permit has been issm
City of Ckula Vi~t~
Community Facilities District No. 06-I, Improvement Area B
EastLnke - Land Swan
Paoa 1~
may be partially prepaid. The amount of the prepayment shall be calculated as in Section H
1; except that a partial prepaYment shall be calculated according to the following formula:
PP = (Pm x F) + A
These teims have the following meaning:
PP = the partial prepayment
P~ = the Prepayment Amount calculated aecording to Section H. 1, minus Prepayment Fees
and Expenses det~.ained pursuant to Step 10.
F = the percent by which the owner of the Assessor's Paxeel(s) is partially p~-paying the
Maximu~ Annual Special Tax.
A= the Prepayment Fees and Expenses determined pursuant to Step 10,
The owner of an Assessor's Parcel who desires to partially prepay the Maximum Annual
Special Tax shall notify the CFI3 Admini.~lxator 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) tho company or agency that will be acting aa
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 Step 16 of Section H. 1, and (ii) indicate in the records
of CFD-06-I, Improvement Area B that there has been a partiai 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) oftha remaining Maximum Annual Special
Tax shall continue to be authorized to be levied on such Assessor's Parcel pursuant to
Section D.
I. TERM OF MAXIMUM ANNUAL SPECIAL TAX
The Maximum Annual Special Tax shall be levied commencing in Fiscal Year 2003-2004
to the extent necessary to fully satisfy the Special Tax Requirement and shall be levied for
a period no longer than the 2043-204A Fiscal Year.
City of Chula Vista
CornmuntO, Facili~es Distn'ct No. 06-1, Improvement Area B
pno~,l~