HomeMy WebLinkAbout2021/08/10 Item 7.1 additional information - received 9/7/21September 7, 2021
City Council
City of Chula Vista
276 Fourth Avenue
Chula Vista, CA 91910
c/o Kerry K. Bigelow, MMC, City Clerk
VIA EMAIL PDF (cityclerk@chulavistaca.gov)
Re: California Municipal Finance Authority Community Facilities District
No. 2021-11 (City of Chula Vista – Otay Ranch Village 8 West) (the “CFD”)
To the Honorable City Council:
Pursuant to Government Code Section 53315.6, I attach the following:
•CMFA Resolution No. 21-222, a resolution of the Board of Directors of the
California Municipal Finance Authority stating its intention to form the
above-referenced CFD over land in the City.
•CMFA Resolution No. 21-224, a resolution of the Board of Directors of the
California Municipal Finance Authority stating its intention to issue bonds
for the CFD.
This CFD is being formed as part of CMFA’s Bond Opportunities for Land
Development Program (BOLD) program. We are transmitting these resolutions simply to
comply with the statutory provisions of Government Code referenced above; no further
action is required on your part with respect to this letter.
Very truly yours,
James A. Wawrzyniak, Jr.
Special Counsel to California Municipal Finance Authority
475 Sansome Street
Suite 1700
San Francisco, CA 94111
t. 415.391.5780
f. 415.276.2088
RESOLUTION NO. 21-222
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CALIFORNIA
MUNICIPAL FINANCE AUTHORITY DECLARING ITS INTENTION TO ESTABLISH
THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY COMMUNITY FACILITIES
DISTRICT NO. 2021-11 (CITY OF CHULA VISTA – OTAY RANCH VILLAGE 8
WEST) AND TO LEVY A SPECIAL TAX THEREIN TO FINANCE THE
ACQUISITION AND CONSTRUCTION OF CERTAIN PUBLIC FACILITIES AND
DEVELOPMENT IMPACT FEES FOR SUCH COMMUNITY FACILITIES DISTRICT
WHEREAS, the City of Chula Vista (the “City”) is a member of the California Municipal
Finance Authority (the “Authority”) and has approved use of the Authority’s Bond Opportunities for
Land Development (“BOLD”) Program to provide financing for public facilities related to development
projects within the boundaries of the City; and
WHEREAS, staff of the Authority has approved an application for participation in the BOLD
program from an owner of land proposed for development in the City, and in connection therewith
has requested the Board of Directors (the “Board”) of the Authority to establish a community facilities
district having a boundary within the City the proposed name for such community facilities district is
“California Municipal Finance Authority Community Facilities District No. 2021-11 (City of Chula Vista
– Otay Ranch Village 8 West)” (the “CFD”); and
WHEREAS, the Board has duly considered the advisability and necessity of establishing a
community facilities district within the boundaries of the City and levying a special tax therein to
finance the acquisition and construction of authorized public facilities and/or reimbursement of
eligible development impact fees under and 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
WHEREAS, the City has authorized the formation of the CFD through the BOLD program
provided that the CFD will be formed in accordance with Council Policy Number 505-04 “Statement
of Goals and Policies Regarding Establishment of Community Facilities Districts,” (the “City’s Goals
and Policies”) with the following exceptions: (1) prohibition on the escalation of the maximum special
tax to pay for public facilities; (3) the payment to the City of compensation equal to one percent (1%)
of the total authorized bonded indebtedness; (4) the requirement that an appraisal be coordinated
by, done under the direction of, and addressed to the City; and (5) the requirement that all consultants
including the appraiser, be selected and retained by the City.
WHEREAS, the Board has determined that the establishment of such community facilities
district is consistent with and follows the local goals and policies concerning the use of the Act that
have been adopted by the Board and are now in effect; and
WHEREAS, the Board is fully advised in this matter;
NOW, THEREFORE, BE IT RESOLVED by the Board of the California Municipal Finance
Authority, as follows:
Section 1. The above recitals are true and correct, and the Board so finds and
determines.
Section 2. It is the intention of the Board to, and the Board hereby proposes to, establish
the CFD under and pursuant to the terms and provisions of the Act to finance costs of public
infrastructure necessary or incidental to new development in the City, which may include the costs
of infrastructure financed by fees related to such new development.
Section 3. The proposed name for the community facilities district is “California Municipal
Finance Authority Community Facilities District No. 2021-11 (City of Chula Vista – Otay Ranch
Village 8 West)”.
Section 4. The proposed boundary of the CFD is as shown on the map on file with the
Secretary, which boundary is hereby preliminarily approved and to which map reference is hereby
made for further particulars. The Secretary is hereby directed to record, or cause to be recorded,
the map of the boundaries of the CFD in the office of the San Diego County Recorder within 15 days
of the date of adoption of this Resolution. The Board finds that the map is in the form and contains
the matters prescribed by Section 3110 of the California Streets and Highways Code.
Section 5. The type of public facilities and/or development impact fees proposed to be
financed in whole or in part by the CFD pursuant to the Act shall consist of those listed as authorized
facilities and development impact fees for facilities on Exhibit A hereto and hereby incorporated
herein (the “Facilities”). The Board hereby determines that the Facilities are necessary to meet
increased demands placed upon local agencies as the result of development occurring within the
CFD. The financing of the costs of Facilities may include, without limitation, the payment of principal
of and interest on bonds together with all direct, indirect periodic, and/or other related costs
(including, without limitation, costs of administering the CFD, levying the Special Tax, as defined
below, and administering the bonds, and establishing and replenishing reserve funds).
The Board hereby finds and determines that Section 53329.5(a) of the Act relating to calling
for bids for construction of the Facilities are inapplicable to the CFD in that the City will acquire but
not construct the Facilities. To that end, City may enter into one or more contracts directly with any
owner or developer of land within the CFD for acquisition of Facilities.
Section 6. It is the intention of the Board that, except where funds are otherwise
available, a special tax (the “Special Tax”) sufficient to finance the acquisition and construction of
and the payment of the fees for the Facilities, including the payment of interest on and principal of
bonds to be issued to finance such acquisition and construction and payment and including the
repayment of funds advanced by the Authority for the CFD and including the repayment under any
agreement (which shall not constitute a debt or liability of the Authority) of advances of funds or
reimbursement for the lesser of the value or cost of work in-kind provided by any person for the CFD,
which Special Tax shall be secured by recordation of a continuing lien against all nonexempt real
property in the CFD, will be annually levied by the Board within the boundaries of the CFD, and for
particulars as to the rate, method of apportionment and manner of collection of such Special Tax
reference is made to Exhibit B (the “Rate and Method”), attached hereto and incorporated herein
and made a part hereof. The Rate and Method sets forth the rate, method of apportionment and
manner of collection of the Special Tax proposed to be levied in the CFD in sufficient detail to allow
each landowner or resident within the CFD to estimate the maximum amount that such person will
have to pay to finance the acquisition and construction of and the payment of the fees for the
Facilities, and which specifies the conditions under which the obligation to pay the Special Tax may
be prepaid and permanently satisfied as provided therein.
The Special Tax to finance Facilities to be levied in the CFD shall not be levied in the CFD
after the fiscal year specified in the Rate and Method, except that a Special Tax that was lawfully
levied in or before the final tax year and that remains delinquent may be collected in subsequent
years. Under no circumstances shall the Special Tax levied against any parcel in the CFD 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 CFD by more than 10 percent.
This Board hereby finds that the provisions of Section 53313.6, 53313.7 and 53313.9 of the
Act (relating to adjustments to ad valorem property taxes and schools financed by a community
facilities district) are inapplicable to the proposed CFD.
Section 7. Except as may otherwise be provided by law or by the Rate and Method, all
lands owned by any public entity, including the United States, the State of California and/or the City,
or any departments or political subdivisions thereof, shall be omitted from the levy of the Special Tax
to be made to cover the costs and expenses of the Facilities or the CFD. In the event that a portion
of the property within the CFD becomes for any reason exempt, wholly or in part, from the levy of
the Special Tax, this Board will, on behalf of the CFD, increase the levy to the extent necessary upon
the remaining property within the CFD which is not exempt in order to yield the required debt service
payments and other annual expenses of the CFD, if any, subject to the provisions of the Rate and
Method.
It is the intention of the Board, pursuant to Section 53317.3 of the Government Code of the
State of California, to continue to levy the Special Tax on property (that is not otherwise exempt from
the Special Tax) that is acquired by a public entity through a negotiated transaction, or by gift or
devise.
It is the intention of the Board, pursuant to Section 53340.1 of the Government Code of the
State of California, to levy the Special Tax on the leasehold or possessory interests in property
owned by a public agency (which property is otherwise exempt from the Special Tax), to be payable
by the owner of the leasehold or possessory interests in such property.
Section 8. The Board intends that the Special Tax will be collected through the regular
secured property-tax bills of the County of San Diego and will be subject to the same enforcement
mechanism, and the same penalties and interest for late payment, as regular ad valorem property
taxes. But the Board reserves the right to use any other lawful means of billing, collecting, and
enforcing the Special Tax, including direct billing, supplemental billing, and, when lawfully available,
judicial foreclosure of the Special Tax lien.
It is the intention of the Board, pursuant to Section 53317.5 of the Government Code of the
State of California, to treat the obligation to pay the Special Tax levied against property that is
acquired by a public entity through eminent domain proceedings as if it were a special annual
assessment.
Section 9. It is the intention of the Board, pursuant to Section 53325.7 of the Government
Code of the State of California, to establish an appropriations limit, as defined by subdivision (h) of
Section 8 of Article XIIIB of the California Constitution, for the CFD.
Section 10. The levy of the Special Tax within the CFD shall be subject to the approval of
the qualified electors within the CFD at a special election. The proposed voting procedure shall be
by mailed or hand-delivered ballot among the landowners in the CFD, with each owner having one
vote for each acre or portion of an acre such owner owns in the CFD not exempt from the respective
Special Tax.
Section 11. It is the intention of this Board, acting as the legislative body of the CFD, to
cause bonds of the Authority and other debt (as defined in the Act) to be issued for the CFD pursuant
to the Act to finance in whole or in part the construction and/or acquisition of the Facilities. The bonds
and other debt shall be issued in such series and bear interest payable semi-annually or in such
other manner as this Board shall determine, at a rate not to exceed the maximum rate of interest as
may be authorized by applicable law at the time of sale of each series of bonds and other debt, and
shall mature not to exceed 40 years from the date of the issuance thereof.
This Board reserves to itself the right and authority to allow any interested owner of property
in the CFD, subject to the provisions of Section 53344.1 of the California Government Code and
such requirements as it may otherwise impose, and any applicable prepayment penalties as
prescribed in the indenture or fiscal agent agreement for any bonds of the Authority for the CFD, to
tender to the Executive Director of the Authority or person in an equivalent position in full payment
or part payment of any installment of Special Taxes or the interest or penalties thereon which may
be due or delinquent, but for which a bill has been received, any bond or other obligation secured
thereby, in the manner described in Section 53344.1 of the California Government Code.
Section 12. The Executive Director of the Authority is hereby directed to study said
proposed Facilities and to make, or cause to be made, and file with the Secretary a report in writing
(the “CFD Report”), presenting the following:
(a) A description of the Facilities by type which will be required to adequately
meet the needs of the CFD.
(b) An estimate of the fair and reasonable cost of the Facilities including the cost
of acquisition of lands, rights-of-way and easements, any physical facilities required in
conjunction therewith and incidental expenses in connection therewith, including the costs
of the proposed bond financing and other debt and all other related costs as provided in
Section 53345.3 of the Act.
The CFD Report shall be made a part of the record of the public hearing specified below.
Section 13. Friday, October 8, 2021, at the hour of 10:00 a.m. or as soon as possible
thereafter, at 2111 Palomar Airport Road, Suite 320, Carlsbad, CA 92011 and 13838 Meadow Lane,
Lytle Creek, CA 92358 (Posted Only; Dial in below to Participate); Telephonic Meeting Only (Dial in
Number: (669) 900-6833 Access Code: 84671819008#), is hereby appointed and fixed as the time
and place when and where this Board, as legislative body for the CFD, will conduct a public hearing
on the establishment of the CFD and consider and finally determine whether the public interest,
convenience and necessity require the formation of the CFD and the levy of the Special Tax within
the CFD.
Section 14. The Secretary is hereby directed to cause notice of the public hearing to be
given by publication one time in a newspaper published in the area of the CFD. The publication shall
be completed at least 7 days before the date of the public hearing specified above, and shall be
substantially in the form of Exhibit C hereto. The notice shall be substantially in the form specified in
Section 53322 of the Act, with the form summarizing the provisions hereof hereby specifically
approved.
Any protests to the proposals in this resolution may be made orally or in writing by any
interested persons or taxpayers, except that any protests pertaining to the regularity or sufficiency
of these proceedings must be in writing and clearly set forth the irregularities and defects to which
objection is made. The Board may waive any irregularities in the form or content of any written protest
and at the public hearing may correct minor defects in the proceedings. All written protests not
presented in person by the protester at the public hearing must be filed with the Secretary at or
before the time fixed for the public hearing in order to be received and considered. Any written protest
may be withdrawn in writing at any time before the conclusion of the public hearing.
The public hearing may be continued from time to time but must be completed within 30 days.
If, however, the Board finds that the complexity of the CFD or the need for public participation
requires additional time, then the public hearing may be continued from time to time for not more
than six months.
Section 15. Section 53314.9 of the Act provides that, either before or after formation of the
CFD, the Authority may accept work in-kind from any source, including, but not limited to, private
persons or private entities, may provide, by resolution, for the use of that work in-kind for any
authorized purpose and the Board may enter into an agreement (an “Acquisition Agreement”), by
resolution, with the person or entity advancing the work in-kind, to reimburse the person or entity for
the value, or cost, whichever is less, of the work in-kind, as determined by the Board, with or without
interest, under the conditions specified in the Act. Any work in-kind must be performed or
constructed as if the work had been performed or constructed under the direction and supervision,
or under the authority of, the Authority.
Section 53316.2 of the Act provides that a community facilities district may finance facilities
to be owned or operated by a public agency other than the agency that created the district, or
services to be provided by a public agency other than the agency that created the district, or any
combination, only pursuant to a joint community facilities agreement or a joint exercise of powers
agreement adopted pursuant to this section.
The Executive Director and each other authorized officer of the Authority is hereby authorized
and directed to enter into one or more joint community facilities agreements with the City and any
other entity that will own or operate any of the Facilities, as may be necessary to comply with the
provisions of Section 53316.2(a) and (b) of the Act. The Board hereby declares that such joint
agreements will be beneficial to owners of property in the area of the CFD.
Section 16. The Executive Director, the Secretary and all other officers and agents of the
Authority are hereby authorized and directed to take all actions necessary or advisable to give effect
to the transactions contemplated by this Resolution.
Section 17. This Resolution shall in no way obligate the Board of the Authority to form the
CFD. The formation of the CFD shall be subject to the approval of this Board by resolution following
the holding of the public hearing referred to above.
Section 18. This Resolution shall take effect from and after its adoption.
PASSED AND ADOPTED by the California Municipal Finance Authority this 27th day of
August, 2021, by the following vote:
AYES: Alexander (Alt.), Connors, De Foor (Alt.), McCarthy, Watanabe
NOES: None
ABSTAIN: None
ABSENT: Adams, Moreno
* * * * *
l, the undersigned, a duly authorized official of the California Municipal Finance Authority,
DO HEREBY CERTIFY that the foregoing resolution was duly adopted by the Board of said
Authority at a duly called meeting of the Board of said Aulhority held in qccordance with law on
August 27 , 2021 .
By:
Signatory
[Resolution of lntention to Establish CMFA CFD 2021-11
(City of Chula Vista - Otay Ranch Village B West)l
, - I 01. ,.\,.
EXHIBIT A
CALIFORNIA MUNICIPAL FINANCE AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 2021-11
(CITY OF CHULA VISTA - OTAY RANCH VILLAGE 8 WEST)
LIST OF AUTHORIZED FACILITIES
See attached.
A-1
EXHIBIT A
California Municipal Finance Authority
Community Facilities District No. 2021-11
(City of Chula Vista – Otay Ranch Village 8 West)
LIST OF AUTHORIZED FACILITIES
Authorized facilities and costs that may be funded through the Community Facilities District (CFD)
include the following public improvements, development impact fees funding public
improvements, and formation and administrative expenses.
Public Improvements Related to Transportation/Roadways
Authorized facilities include any and all on-site and off-site publicly-owned roadway and
transportation facilities required to meet the needs of development within the CFD. Eligible costs
of these facilities include, but are not limited to, the following to the extent that they are capital
costs of the facilities: Acquisition of land and easements; design; project management; payment
and performance bond premiums; clearing, grubbing, and demolition; grading, soil import/export;
paving (including slurry seal), and decorative/enhanced pavement concrete and/or pavers; bridge
crossings and culverts; joint trenches, underground utilities and undergrounding of existing
utilities; dry utilities and appurtenances; curbs, gutters, sidewalks, bike trails (including onsite and
off-site); enhanced fencing, and access ramps; street lights; roundabouts; intersections,
signalization, and traffic signal control systems; bus turnouts; signs and striping; winterization and
erosion control; median and landscape corridor landscaping and irrigation; bus shelters; retaining
walls; masonry walls; implementation and maintenance of SWPPP measures; traffic control and
agency fees required as a condition of development within the boundaries of the CFD; and other
improvements related thereto where required.
By way of example and not limitation, the following roadways are anticipated to be constructed to
meet the needs of the development within the CFD:
1. La Media Parkway (Town Center Arterial and 4 Lane Major) – (TDIF Facility)
City TDIF Road: Portion of 53A, portion of 56C
Limits: From north Village 8 West boundary, south and east ending at
east Village 8 West boundary
Includes: Grading, drainage, surface improvements, landscape and
irrigation, traffic signals, environmental mitigation, associated soft
costs
2. Main Sreet (Town Center Arterial) – (TDIF Facility)
City TDIF Road: 53B
Limits: From west Village 8 West boundary to east Village 8 West
boundary
Includes: Grading, drainage, surface improvements, landscape and
irrigation, traffic signals, environmental mitigation, associated soft
costs
A-2
3. Avenida Caprise (Residential Collector)
Limits: From westbound Main Street to southerly terminus of road
Includes: Grading, drainage, surface improvements, landscape and
irrigation, traffic signals, environmental mitigation, associated soft
costs
Public Improvements Financed Through Development Impact Fees
Authorized facilities include any facilities authorized by the Mello-Roos Community Facilities Act
of 1982 (Mello-Roos Act) that are financed in whole or in part by development impact fees levied
in connection with development of the property, whether by the City of Chula Vista (City), the
County of San Diego (County), or any other local agency. By way of example and not limitation,
authorized facilities include facilities to be constructed using the following development impact
fees levied by the City:
1. Sewer Capacity Charge
2. Salt Creek Sewer Basin Fee
3. Traffic Signal Fee
4. Eastern Transportation Development Impact Fee
5. Parkland Acquisition and Development Fee (Community Park portion only)
6. Public Facilities Development Impact Fees
7. Possible Future Fee for Vehicle Miles Traveled (VMT)
Administrative and Incidental Expenses
In addition to the above facilities, other incidental expenses as authorized by the Mello-Roos Act
include these: the cost of planning, permitting, and designing the facilities (including the cost of
environmental evaluation, orthophotography, and environmental remediation/mitigation); land
acquisition and easement payments for authorized CFD facilities; project management;
mobilization; construction staking; engineering studies and preparation of an engineer’s report;
utility relocation and demolition costs incidental to construction of the public facilities cost
associated with the creation of the CFD and issuance of bonds; determination of the amount of
taxes and collection of taxes; payment of taxes; costs otherwise incurred to carry out the
authorized purposes of the CFD; reimbursements to other areas for infrastructure facilities or
planning purposes serving development in the CFD; and any other expenses incidental to the
construction, completion, and inspection of the facilities.
In addition, the CFD shall fund the direct and indirect expenses incurred by the California
Municipal Finance Authority (CMFA), the City, the County or any other public agency relating to
the CFD, including but not limited to:
1. The levy and collection of the special taxes
2. The fees and expenses of attorneys and consultants
3. Any fees related to the collection of special taxes
4. An allocable share of the salaries and benefits of any CMFA or other agency staff, or
consultant fees, directly related thereto and a proportionate amount of CMFA’s or such
other agency’s general administrative overhead related thereto
5. Any amounts paid by CMFA or any other agency with respect to the CFD
A-3
6. Expenses incurred in undertaking action to foreclose on properties for which the payment
of special taxes is delinquent
7. Administrative fees of CMFA or any other agency and the bond trustee or fiscal agent
related to the CFD and the bonds issued by or for the CFD
8. Costs related to the formation of the CFD
9. Reimbursement of costs related to the formation of the CFD advanced by CMFA or any
other agency, the landowner(s) in the CFD or any party related to any of the foregoing, as
well as reimbursement of any costs advanced by CMFA or any other agency, the
landowner(s) in the CFD or any party related to any of the foregoing, for facilities, fees or
other purposes or costs of the CFD.
10. Costs related to the issuance of bonds by or for the CFD, including underwriters discount,
reserve fund, capitalized interest, letter of credit fees and expenses, fees and expenses
of bond counsel, disclosure counsel, special tax consultant, municipal advisor and
appraiser, bond remarketing costs, and all other incidental expenses.
11. All other costs and expenses of CMFA or any other agency in any way related to the CFD.
EXHIBIT B
CALIFORNIA MUNICIPAL FINANCE AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 2021-11
(CITY OF CHULA VISTA - OTAY RANCH VILLAGE 8 WEST)
RATE AND METHOD OF APPORTIONMENT
See attached.
August 27, 2021 C-1 Community Facilities District No. 2021-11
CALIFORNIA MUNICIPAL FINANCE AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 2021-11
(CITY OF CHULA VISTA - OTAY RANCH VILLAGE 8 WEST)
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
A Special Tax applicable to each Assessor’s Parcel in the California Municipal Finance Authority
Community Facilities District No. 2021-11 (City of Chula Vista - Otay Ranch Village 8 West) shall
be levied and collected according to the tax liability determined by the Board through the
application of the appropriate amount or rate for Taxable Property, as described below. All of the
property in the CFD, unless exempted by law or by the provisions of Section G below, 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 or other parcel map recorded at the County Recorder’s Office.
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5
(commencing with Section 53311), Part 1, Division 2, of Title 5 of the Government Code of the
State of California.
“Administrative Expenses” means any or all of the following: the fees and expenses of any fiscal
agent or trustee (including any fees or expenses of its counsel) employed in connection with any
Bonds, and the expenses of CMFA in carrying out its duties with respect to the CFD and the Bonds,
including, but not limited to, the levy and collection of Special Taxes, the fees and expenses of its
counsel, charges levied by the County in connection with the levy and collection of Special Taxes,
costs related to property owner inquiries regarding the Special Tax, costs associated with appeals
or requests for interpretation associated with the Special Tax and this RMA, amounts needed to pay
rebate to the federal government with respect to Bonds, costs associated with complying with
continuing disclosure requirements for CMFA and any major property owners or other obligated
parties, costs associated with foreclosure and collection of delinquent Special Taxes, and all other
costs and expenses of CMFA and the City in any way related to the establishment or administration
of the CFD.
“Administrator” shall mean the person or firm designated by CMFA to administer the Special
Tax according to this RMA.
“Assessor’s Parcel” or “Parcel” means a lot or parcel shown on an Assessor’s Parcel Map with
an assigned Assessor’s Parcel number.
“Assessor’s Parcel Map” means an official map of the County Assessor designating Parcels by
Assessor’s Parcel number.
August 27, 2021 C-2 Community Facilities District No. 2021-11
“Assigned Special Tax” means, for any Land Use Category, the applicable Special Tax identified
in Tables 1, 3, 5, 7 and 9 of Section C.
“Authorized Facilities” means the public facilities authorized and development impact fees to be
financed, in whole or in part, by the CFD.
“Backup Special Tax” means the applicable Special Tax identified in Tables 2, 4, 6, 8 and 10 of
Section C.
“Board” means the Board of Directors of CMFA.
“Bonds” means bonds or other debt (as defined in the Act), whether in one or more series, secured
by the Special Tax and issued or assumed by the CFD to fund Authorized Facilities.
“Building Permit” means a permit that allows for vertical construction of a building or buildings,
which shall not include a separate permit issued for construction of the foundation thereof.
“Capitalized Interest” means funds in any capitalized interest account available to pay debt
service on Bonds.
“CFD” means the California Municipal Finance Authority Community Facilities District No.
2021-11 (City of Chula Vista - Otay Ranch Village 8 West).
“City” means the City of Chula Vista.
“CMFA” means the California Municipal Finance Authority.
“County” means the County of San Diego.
“Developed Property” means, in any Fiscal Year, all Parcels of Taxable Property, exclusive of
Provisional Undeveloped, for which a Building Permit for new construction was issued prior to
June 1 of the preceding Fiscal Year.
“Development Class” means, individually, Developed Property, Final Map Property,
Undeveloped Property, and Provisional Undeveloped Property.
“Final Map” means a final map, or portion thereof, approved by the City pursuant to the
Subdivision Map Act (California Government Code Section 66410 et seq) that creates Lots. The
term “Final Map” shall not include any large-lot subdivision map, Assessor’s Parcel Map, or
subdivision map or portion thereof, which does not create Lots, including Assessor’s Parcels that
are designated as remainder parcels.
“Final Map Property” means, in any Fiscal Year, all Lots created within Final Maps that had
recorded prior to June 30 of the preceding Fiscal Year and which are not classified as Developed
Property.
August 27, 2021 C-3 Community Facilities District No. 2021-11
“First Bond Sale” means issuance of the first series of Bonds secured, in whole or in part, by
Special Taxes levied and collected from Parcels of Taxable Property in the CFD.
“Fiscal Year” means the period starting July 1 and ending on the following June 30.
“Improvement Fund” means the account (regardless of its name) identified in the Indenture to
hold funds that are available for expenditure to acquire or construct Authorized Facilities or to pay
eligible impact fees.
“Indenture” means the bond indenture, fiscal agent agreement, trust agreement, resolution or other
instrument pursuant to which Bonds are issued, as modified, amended, and/or supplemented from
time to time, and any instrument replacing or supplementing the same.
“Land Use Category” means the categories of land use identified in Tables 1through 10 in Section
C below.
“Lot” means an individual residential lot, identified and numbered on a recorded Final Map, for
which a Building Permit has been or is permitted to be issued for construction of a Unit without
further subdivision of the lot and for which no further subdivision of the lot is anticipated pursuant
to an approved Tentative Map.
“Maximum Special Tax” means, for each Assessor’ Parcel the greatest amount of Special Tax
that can be levied on such Parcel in any Fiscal Year, as determined in accordance with Sections C
and D below.
“Non-Residential Property” means any Parcel, or portion of a Parcel, of Developed Property in
the CFD for which a building permit(s) was issued for non-residential use.
“Owners Association” means a homeowners association or property owners association that
provides services to, and collects assessments, fees, dues, or charges from, property within the
CFD.
“Owners Association Property” means any property within the boundaries of the CFD that is
owned in fee or through easement by an Owners Association, not including any such property that
is located directly under a residential structure.
“Proportionately” means, for each Development Class, that the ratio of the actual Special Tax
levied in any Fiscal Year to the Maximum Special Tax authorized to be levied in that Fiscal Year
is equal for all parcels assigned to the Development Class.
“Provisional Undeveloped Property” means in any Fiscal Year after the First Bond Sale, any
Parcel that would otherwise be classified as Exempt Property pursuant to the provisions of Section
G, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all
Taxable Property below the required minimum Acreage as set forth in Section G.
“Public Property” means any Assessor’s Parcel within the boundaries of the CFD that is (i) owned
by the City, federal government, State of California, or other public agency, (ii) owned by a public
August 27, 2021 C-4 Community Facilities District No. 2021-11
utility for an unmanned facility, or (iii) subject to an public or utility easement making impractical
its utilization for purposes other than set forth in the easement or dedication.
“Residential Property” means, in any Fiscal Year, all Parcels of Taxable Property for which a
Building Permit was or is expected to be issued for construction of one or more Residential Units.
“Residential Unit” means each separate residential dwelling unit that comprises an independent
facility capable of conveyance or rental separate from adjacent residential dwelling units.
“RMA” means this Rate and Method of Apportionment of Special Tax.
“School Site” means Otay Ranch Village 8 Planning Area S.
“Special Tax” means a special tax levied in any Fiscal Year to pay the Special Tax Requirement
pursuant to this RMA.
“Special Tax Requirement” means the amount necessary in any Fiscal Year to: (i) pay principal
and interest on Bonds that are due in the calendar year that begins in such Fiscal Year; (ii) pay
periodic costs on the Bonds, including but not limited to, credit enhancement, liquidity support,
and rebate payments on the Bonds; (iii) replenish reserve funds created for the Bonds under the
Indenture to the extent such replenishment has not been included in the computation of the Special
Tax Requirement in a previous Fiscal Year; (iv) cure any delinquencies in the payment of principal
or interest on Bonds which have occurred in the prior Fiscal Year; (v) pay Administrative Expenses;
and (vi) pay directly for Authorized Facilities, so long as such levy under this clause (vi) does not
increase the Special Tax levy beyond the Step 1 in Section E. The amounts referred to in clauses
(i) and (ii) of the definition of Special Tax Requirement may be reduced in any Fiscal Year by: (a)
interest earnings on or surplus balances in funds and accounts for the Bonds to the extent that
such earnings or balances are available to apply against such costs pursuant to the Indenture; (b)
in the sole and absolute discretion of CMFA, proceeds received by the CFD from the collection of
penalties associated with delinquent Special Taxes; and (c) any other revenues available to pay
such costs, each as determined in the sole discretion of CMFA.
“Square Footage Category” means one of the categories of Residential Property for which a
Special Tax amount is set forth in Tables 1, 3, 5, 7 or 9 in Section C below.
“Taxable Property” means all of the Parcels within the boundaries of the CFD that are not exempt
from the Special Tax pursuant to law or Section G below.
“Tentative Map” means a tentative map or substantial conformance exhibit for property in the
CFD, including any adjustments or amendments thereto.
“Undeveloped Property” means, in any Fiscal Year, all Parcels of Taxable Property that are not
Final Map Property, Developed Property, or Provisional Undeveloped Property, as defined herein.
“Zone 1” means a geographic area consisting of Otay Ranch Village 8 Planning Areas D or S if
not utilized as the School Site and as depicted in Exhibit A, attached hereto.
“Zone 2” means a geographic area consisting of Otay Ranch Village 8 Planning Areas U or V and
as depicted in Exhibit A, attached hereto.
“Zone 3” means a geographic area consisting of Otay Ranch Village 8 Planning Areas M, N, O or
Q and as depicted in Exhibit A, attached hereto.
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“Zone 4” means a geographic area consisting of Otay Ranch Village 8 Planning Area P and as
depicted in Exhibit A, attached hereto.
“Zone 5” means a geographic area consisting of Otay Ranch Village 8 Planning Area C, F, H-1, I,
L, J or W as depicted in Exhibit A, attached hereto.
B. DATA FOR ADMINISTRATION OF THE SPECIAL TAX
Each Fiscal Year, the Administrator shall: (i) assign each Parcel of Taxable Property to the
appropriate Development Class; (ii) for Residential Property, determine the Square Footage
Category for each Residential Unit; (iii) for Undeveloped Property or Provisional Undeveloped
Property, determine the Acreage of each Parcel; and (iv) determine the Special Tax Requirement
for the Fiscal Year.
In any Fiscal Year, if it is determined that: (i) a Final Map for property in the CFD was recorded
after January 1 of the prior Fiscal Year (or any other date after which the Assessor will not
incorporate the newly-created parcels into the then current tax roll), (ii) because of the date the
Final Map was recorded, the Assessor does not yet recognize the new parcels created by the Final
Map, and (iii) one or more of the newly-created parcels is in a different Development Class than
other parcels created by the subdivision, the Administrator shall calculate the Special Taxes for the
property affected by recordation of the Final Map by determining the Special Taxes that apply
separately to the property within each Development Class, then applying the sum of the individual
Special Taxes to the Parcel that was subdivided by recordation of the Final Map.
C. MAXIMUM SPECIAL TAX
1. Developed Property in Zone 1
The Maximum Special Tax for a Parcel of Developed Property in Zone 1 is the greater of: (i) the
Assigned Special Tax set forth in Table 1 below, or (ii) the Backup Special Tax as set forth in Table
2 below.
Table 1
Zone 1-Assigned Special Tax
Developed Property
Land Use Category Square Footage Category Assigned Special Tax
Fiscal Year 2021/2022*
Residential Property 1,600 square feet or Less $3,046 per Residential Unit
Residential Property 1,601 to 1,800 square feet $3,322 per Residential Unit
Residential Property 1,801 to 2,000 square feet $3,551 per Residential Unit
Residential Property Greater than 2,000 square feet $3,703 per Residential Unit
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Table 2
Zone 1 - Backup Special Tax
Developed Property
Land Use Category Backup Special Tax
Fiscal Year 2021/2022*
Residential Property $3,402 per Lot
* On July 1, 2022, and on each July 1 thereafter, all figures shown in Tables 1 & 2
above shall be increased by an amount equal to 2.0% of the amount in effect for the
prior Fiscal Year.
1.a. Final Map Property Zone 1
The Maximum Special Tax for Zone 1 Final Map Property is $3,402 per Lot for Fiscal Year
2021/2022, which amount shall increase on July 1, 2022, and each July 1 thereafter by an amount
equal to 2.0% of the amount in effect for the prior Fiscal Year.
1.b. Undeveloped Property and Provisional Undeveloped Property Zone 1
The Maximum Special Tax for Zone 1 Undeveloped Property and Provisional Undeveloped
Property is $55,101 per Acre for Fiscal Year 2021/2022, which amount shall increase on July 1,
2022, and each July 1 thereafter by an amount equal to 2.0% of the amount in effect for the prior
Fiscal Year.
2. Developed Property in Zone 2
The Maximum Special Tax for a Parcel of Developed Property in Zone 2 is the greater of: (i) the
Assigned Special Tax set forth in Table 3 below, or (ii) the Backup Special Tax as set forth in Table
4 below.
Table 3
Zone 2-Assigned Special Tax
Developed Property
Land Use Category Square Footage Category Assigned Special Tax
Fiscal Year 2021/2022*
Residential Property 2,000 square feet or Less $3,551 per Residential Unit
Residential Property 2,001 to 2,200 square feet $3,703 per Residential Unit
Residential Property 2,201 to 2,400 square feet $4,189 per Residential Unit
Residential Property 2,401 to 2,600 square feet $4,831 per Residential Unit
Residential Property Greater than 2,600 square feet $5,473 per Residential Unit
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Table 4
Zone 2 - Backup Special Tax
Developed Property
Land Use Category Backup Special Tax
Fiscal Year 2021/2022*
Residential Property $4,482 per Lot
* On July 1, 2022, and on each July 1 thereafter, all figures shown in Tables 3 & 4
above shall be increased by an amount equal to 2.0% of the amount in effect for the
prior Fiscal Year.
2.a. Final Map Property Zone 2
The Maximum Special Tax for Zone 2 Final Map Property is $4,482 per Lot for Fiscal Year
2021/2022, which amount shall increase on July 1, 2022, and each July 1 thereafter by an amount
equal to 2.0% of the amount in effect for the prior Fiscal Year.
2.b. Undeveloped Property and Provisional Undeveloped Property Zone 2
The Maximum Special Tax for Zone 2 Undeveloped Property and Provisional Undeveloped
Property is $38,911 per Acre for Fiscal Year 2021/2022, which amount shall increase on July 1,
2022, and each July 1 thereafter by an amount equal to 2.0% of the amount in effect for the prior
Fiscal Year.
3. Developed Property in Zone 3
The Maximum Special Tax for a Parcel of Developed Property in Zone 3 is the greater of: (i) the
Assigned Special Tax set forth in Table 5 below, or (ii) the Backup Special Tax as set forth in Table
6 below.
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Table 5
Zone 3-Assigned Special Tax
Developed Property
Land Use Category Square Footage Category Assigned Special Tax
Fiscal Year 2021/2022*
Residential Property 1,350 square feet or Less $2,271 per Residential Unit
Residential Property 1,351 to 1,525 square feet $2,412 per Residential Unit
Residential Property 1,526 to 1,700 square feet $2, 502 per Residential Unit
Residential Property 1,701 to 1,875 square feet $2,659 per Residential Unit
Residential Property 1,876 to 2,050 square feet $3,185 per Residential Unit
Residential Property 2,051 to 2,225 square feet $3,223 per Residential Unit
Residential Property Greater than 2,225 square feet $3,537 per Residential Unit
Table 6
Zone 3 - Backup Special Tax
Developed Property
Land Use Category Backup Special Tax
Fiscal Year 2021/2022*
Residential Property $2,939 per Lot
* On July 1, 2022, and on each July 1 thereafter, all figures shown in Tables 5 & 6
above shall be increased by an amount equal to 2.0% of the amount in effect for the
prior Fiscal Year.
3.a. Final Map Property Zone 3
The Maximum Special Tax for Zone 3 Final Map Property is $2,939 per Lot for Fiscal Year
2021/2022, which amount shall increase on July 1, 2022, and each July 1 thereafter by an amount
equal to 2.0% of the amount in effect for the prior Fiscal Year.
3.b. Undeveloped Property and Provisional Undeveloped Property Zone 3
The Maximum Special Tax for Zone 3 Undeveloped Property and Provisional Undeveloped
Property is $34,530 per Acre for Fiscal Year 2021/2022, which amount shall increase on July 1,
2022, and each July 1 thereafter by an amount equal to 2.0% of the amount in effect for the prior
Fiscal Year.
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4. Developed Property in Zone 4
The Maximum Special Tax for a Parcel of Developed Property in Zone 4 is the greater of: (i) the
Assigned Special Tax set forth in Table 7 below, or (ii) the Backup Special Tax as set forth in Table
8 below.
Table 7
Zone 4-Assigned Special Tax
Developed Property
Land Use Category Square Footage Category Assigned Special Tax
Fiscal Year 2021/2022*
Residential Property 1,350 square feet or Less $2,271 per Residential Unit
Residential Property 1,351 to 1,525 square feet $2,412 per Residential Unit
Residential Property 1,526 to 1,700 square feet $2,502 per Residential Unit
Residential Property 1,701 to 1,875 square feet $2,659 per Residential Unit
Residential Property 1,876 to 2,050 square feet $3,185 per Residential Unit
Residential Property 2,051 to 2,225 square feet $3,223 per Residential Unit
Residential Property Greater than 2,225 square feet $3,537 per Residential Unit
Table 8
Zone 4-Backup Special Tax
Developed Property
Land Use Category Backup Special Tax
Fiscal Year 2021/2022*
Residential Property $3,537 per Lot
* On July 1, 2022, and on each July 1 thereafter, all figures shown in Tables 7 & 8
above shall be increased by an amount equal to 2.0% of the amount in effect for the
prior Fiscal Year.
4.a. Final Map Property Zone 4
The Maximum Special Tax for Zone 4 Final Map Property is $3,537 per Lot for Fiscal Year
2021/2022, which amount shall increase on July 1, 2022, and each July 1 thereafter by an amount
equal to 2.0% of the amount in effect for the prior Fiscal Year.
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4.b. Undeveloped Property and Provisional Undeveloped Property Zone 4
The Maximum Special Tax for Zone 4 Undeveloped Property and Provisional Undeveloped
Property is $22,405 per Acre for Fiscal Year 2021/2022, which amount shall increase on July 1,
2022, and each July 1 thereafter by an amount equal to 2.0% of the amount in effect for the prior
Fiscal Year.
5. Developed Property in Zone 5
The Maximum Special Tax for a Parcel of Developed Property in Zone 5 is the greater of: (i) the
Assigned Special Tax set forth in Table 9 below, or (ii) the Backup Special Tax as set forth in Table
10 below.
Table 9
Zone 5-Assigned Special Tax
Developed Property
Land Use Category Square Footage
Category
Assigned Special Tax
Fiscal Year 2021/2022*
Residential Property N/A $40 per Residential Unit
Table 10
Zone 5-Backup Special Tax
Developed Property
Land Use Category Backup Special Tax
Fiscal Year 2021/2022*
Residential Property $1,704 per Acre
* On July 1, 2022, and on each July 1 thereafter, all figures shown in Tables 9 & 10
above shall be increased by an amount equal to 2.0% of the amount in effect for the
prior Fiscal Year.
5.a. Undeveloped Property and Provisional Undeveloped Property Zone 5
The Maximum Special Tax for Zone 5 Undeveloped Property and Provisional Undeveloped
Property is $1,704 per Acre for Fiscal Year 2021/2022, which amount shall increase on July 1,
2022, and each July 1 thereafter by an amount equal to 2.0% of the amount in effect for the prior
Fiscal Year.
D. CHANGES TO THE MAXIMUM SPECIAL TAX
2. Partial Prepayments
If a Parcel partially prepays the Special Tax pursuant to Section H.2 below, the Administrator shall
recalculate the Maximum Special Tax for the Parcel pursuant to Section H.2. After the prepayment
has been received, the application of Sections E, and H of this RMA shall be based on the adjusted
Maximum Special Tax after the prepayment.
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3. Conversion of a Parcel of Public Property to Private Use
If, in any Fiscal Year, a Parcel of Public Property is converted to private use, such Parcel shall be
subject to the levy of the Special Tax. The Maximum Special Tax for each such Parcel shall be
determined based on the applicable Zone, Development Class and Land Use Category, as
determined by the Administrator.
4. Maximum Special Tax Reduction
Prior to the First Bond Sale, the owner of not less than 100% of the Taxable Property within the
CFD may elect to reduce the Maximum Special Taxes for each Development Class, including the
Assigned Special Tax and Backup Special Tax applicable to Developed Property, by written request
to CMFA or the Administrator. The requested reduction must be acceptable to CMFA’s bond
counsel and consistent with the Act. In the event of a Special Tax reduction pursuant to this Section
D.3, the Administrator shall cause a notice of the reduced Maximum Special Tax to be recorded
pursuant to the Act. Upon recordation of such notice, the reduction to the Maximum Special Tax
shall be permanent.
E. METHOD OF LEVY OF THE SPECIAL TAX
Each Fiscal Year, the Administrator shall determine the Special Tax Requirement to be collected
in that Fiscal Year. A Special Tax shall then be levied in all Zones according to the following
steps:
Step 1: The Special Tax shall be levied Proportionately on each Parcel of Developed
Property up to 100% of the Assigned Special Tax for each Parcel of Developed
Property until the amount levied is equal to the Special Tax Requirement prior to
applying any Capitalized Interest that is available in the CFD accounts.
Step 2: If additional revenue is needed after Step 1 in order to meet the Special Tax
Requirement after Capitalized Interest has been applied to reduce the Special Tax
Requirement, the Special Tax shall be levied Proportionately on each Parcel of Final
Map Property up to 100% of the Maximum Special Tax for each Parcel of Final
Map Property.
Step 3: If additional revenue is needed to meet the Special Tax Requirement after Steps 1
and 2, the Special Tax shall be levied Proportionately on each Parcel of
Undeveloped Property up to 100% of the Maximum Special Tax for each Parcel of
Undeveloped Property.
Step 4: If additional revenue is needed to meet the Special Tax Requirement after Steps 1
through 3, the Special Tax levied on each Parcel of Developed Property pursuant to
Step 1 shall be increased in equal percentages up to the Maximum Special Tax for
each Parcel of Developed Property.
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Step 5: If additional revenue is needed to meet the Special Tax Requirement after Steps 1
through 4, the Special Tax shall be levied Proportionately on each parcel of
Provisional Undeveloped Property, up to 100% of the Maximum Special Tax for
each parcel of Provisional Undeveloped Property.
F. MANNER OF COLLECTION OF SPECIAL TAX AND TERM
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem
property taxes, provided, however, that prepayments are permitted as set forth in Section H below
and provided further that CMFA may directly bill the Special Tax, may collect Special Taxes at a
different time or in a different manner, and may collect delinquent Special Taxes through
foreclosure or other available methods.
The Special Tax shall be levied and collected until principal and interest on Bonds have been repaid.
However, in no event shall Special Taxes be levied after Fiscal Year 2061/2062. Under no
circumstances may the Special Tax on a Parcel of Developed Property in residential use be
increased in any Fiscal Year as a consequence of delinquency or default in payment of the Special
Tax levied on another Parcel or Parcels by more than ten percent (10%) above the amount that
would have been levied in that Fiscal Year had there never been any such delinquencies or defaults.
G. EXEMPTIONS
The Administrator shall classify as Exempt Property (i) Public Property, (ii) Parcels which are used
as places of worship and are exempt from ad valorem property taxes because they are owned by a
religious organization (iii) Parcels or the portion of a Parcel exclusively developed as Non-
Residential Property (iv) Owner Association Property, provided that no such classification would
reduce the sum of all Taxable Property in each Zone as follows:
Zone Minimum Taxable
Acreage
Zone 1 25.13*
Zone 2 27.53
Zone 3 38.04
Zone 4 18.15
Zone 5 37.95
*If the School Site is developed as Residential Property. If the School Site is developed as a school,
Zone 1 Minimum Taxable Acreage shall be 15.63 Acres.
Parcels which cannot be classified as Exempt Property because such classification would reduce
the sum of all Taxable Property in each Zone below the minimum Acreage as stated above shall be
classified as Provisional Undeveloped Property, and will continue to be subject to the Special Tax
accordingly. Tax exempt status for this purpose of this paragraph will be assigned by the
Administrator in the chronological order in which property becomes eligible for classification as
Exempt Property.
If the use of an Assessor’s Parcel of Exempt Property changes so that such Assessor’s Parcel is no
longer classified as one of the uses set forth in the first paragraph of this Section G above that would
August 27, 2021 C-13 Community Facilities District No. 2021-11
make such Assessor’s Parcel eligible to be classified as Exempt Property, such Assessor’s Parcel
shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property.
H. PREPAYMENTS
The following definitions apply to this Section H:
“Outstanding Bonds” means all Previously Issued Bonds which remain outstanding, with
the following exception: if a Special Tax has been levied against, or already paid by, an
Assessor’s Parcel for which prepayment is being made, and a portion of the Special Tax
will be used to pay a portion of the next principal payment on the Bonds that remain
outstanding (as determined by the Administrator), that next principal payment shall be
subtracted from the total Bond principal that remains outstanding, and the difference shall
be used as the amount of Outstanding Bonds for purposes of this prepayment formula.
“Previously Issued Bonds” means all Bonds that have been issued prior to the date of
prepayment.
“Public Facilities Requirements” means either $80,000,000 in 2021 dollars, which shall
increase on January 1, 2022, and on each January 1 thereafter by 2% of the amount in effect
in the prior year, or such lower number as shall be determined by CMFA as sufficient to
fund improvements that are authorized to be funded by the CFD.
“Remaining Facilities Costs” means the Public Facilities Requirement minus public
facility costs funded or to be funded by proceeds of Previously Issued Bonds.
2. Full Prepayment
The Special Tax obligation applicable to a Parcel in the CFD may be prepaid and the obligation of
the Parcel to pay the Special Tax permanently satisfied as described herein, provided that a
prepayment may be made only if there are no delinquent Special Taxes with respect to such Parcel
at the time of prepayment. An owner of a Parcel intending to prepay the Special Tax obligation
shall provide CMFA with written notice of intent to prepay. Within 30 days of receipt of such
written notice, CMFA or its designee shall notify such owner of the prepayment amount for such
Parcel. Prepayment must be made not less than 60 days prior to any redemption date for Bonds to
be redeemed with the proceeds of such prepaid Special Taxes. The Prepayment Amount shall be
calculated as follows (capitalized terms as defined below):
Bond Redemption Amount
plus Remaining Facilities Amount
plus Redemption Premium
plus Defeasance Requirement
plus Administrative Fees and Expenses
less Reserve Fund Credit
equals Prepayment Amount
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As of the proposed date of prepayment, if there are no delinquent Special Taxes, the Prepayment
Amount shall be determined by application of the following steps:
Step 1: Compute the Maximum Special Tax for the Parcel for which the Special Tax
is being prepaid based on the Fiscal Year in which prepayment would be
received by CMFA.
Step 2: Divide the Maximum Special Tax computed pursuant to Step 1 for such
Parcel by the total Maximum Special Taxes for all Taxable Property in the
CFD.
Step 3: Multiply the quotient computed pursuant to Step 2 by the Outstanding Bonds
to compute the amount of Outstanding Bonds to be retired and prepaid (the
“Bond Redemption Amount”).
Step 4: Compute the current Remaining Facilities Costs (if any).
Step 5: Multiply the quotient computed pursuant to Step 2 by the amount determined
pursuant to Step 4 to compute the amount of Remaining Facilities Costs to
be prepaid (the “Remaining Facilities Amount”).
Step 6: Multiply the Bond Redemption Amount computed pursuant to Step 3 by the
applicable redemption premium, if any, on the Outstanding Bonds to be
redeemed (the “Redemption Premium”).
Step 7: Compute the amount needed, if any, to pay interest on the Bond Redemption
Amount starting with the first Bond interest payment date following the
Fiscal Year in which the prepayment will be received until the earliest
redemption date for the Outstanding Bonds. However, if Bonds are callable
at the first interest payment date after the prepayment has been received,
Steps 7, 8, and 9 of this prepayment formula will not apply.
Step 8: Compute the amount of interest CMFA reasonably expects to derive from
reinvestment of the Bond Redemption Amount plus the Redemption
Premium from the first Bond interest payment date after which the
prepayment has been received until the redemption date for the Outstanding
Bonds.
Step 9: Subtract the amount computed pursuant to Step 8 from the amount computed
pursuant to Step 7 (the “Defeasance Requirement”).
Step 10: The administrative fees and expenses associated with the prepayment will
be determined by the Administrator and include the costs of computing the
prepayment, redeeming Bonds, and recording any notices to evidence the
prepayment and the redemption (the “Administrative Fees and Expenses”).
August 27, 2021 C-15 Community Facilities District No. 2021-11
Step 11: If and to the extent so provided in the Indenture, a reserve fund credit shall
be calculated as a reduction in the applicable reserve fund for the
Outstanding Bonds to be redeemed pursuant to the prepayment (the
“Reserve Fund Credit”).
Step 12: The Special Tax prepayment is equal to the sum of the amounts computed
pursuant to Steps 3, 5, 6, 9, and 10, less the amount computed pursuant to
Step 11 (the “Prepayment Amount”).
Step 13: From the Prepayment Amount, the amounts computed pursuant to Steps 3,
6, and 9 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 Step 5 shall be deposited into
the Improvement Fund. The amount computed pursuant to Step 10 shall be
retained in the account or fund that is established to pay Administrative
Expenses.
Once a full prepayment of a Parcel’s Special Tax obligation has been received, a Notice of
Cancellation of Special Tax Lien shall be recorded against the Parcel to reflect the discharge of the
Parcel’s obligation to pay the Special Tax. However, a Notice of Cancellation of Special Tax Lien
shall not be recorded until all Special Taxes levied on the Parcel in the current or prior Fiscal Years
have been collected.
3. Partial Prepayment
Prior to the issuance of the Building Permit for the construction of a Residential Unit, an owner
may elect in writing to CMFA to prepay a portion of the Special Tax obligation for the Parcel. The
partial prepayment of the Special Tax obligation shall be collected prior to the issuance of the
Building Permit with respect to each Parcel.
A partial prepayment may be made in an amount equal to any percentage of full prepayment desired
by the party making a partial prepayment, except that the full amount of Administrative Fees and
Expenses determined in Step 10 shall be included in the partial prepayment. The Maximum Special
Tax that can be levied on a Parcel after a partial prepayment is made shall be equal to the portion
of the Maximum Special Tax that was not prepaid. Once a partial prepayment has been received,
an Amended Notice of Special Tax Lien shall be recorded against the Parcel to reflect the reduced
Maximum Special Tax for the Parcel.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of
]Maximum Special Taxes that may be levied in each Fiscal Year on all Parcels of Taxable Property
after the proposed prepayment will be at least 1.1 times the annual debt service on the Bonds that
will remain outstanding for such Fiscal Year after the prepayment, plus the estimated annual
Administrative Expenses.
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I. INTERPRETATION OF RMA
Interpretations may be made by Resolution of the Board to interpret, clarify, and/or revise this
RMA to correct any inconsistency, vagueness, or ambiguity as it relates to the Special Tax, method
of apportionment, classification of properties, or any definition applicable to the CFD, as long as
such correction does not materially affect the levy and collection of Special Taxes. CMFA, upon
the request of an owner of land within the CFD which is not Developed Property, may also amend
this RMA in any manner acceptable to CMFA, by resolution or ordinance following a public
hearing, upon the affirmative vote of such owner to such amendment and without the vote of owners
of any other land within the CFD, provided such amendment only affects such owner's land.
EXHIBIT C
FORM OF
NOTICE OF PUBLIC HEARING ON PROPOSED
CALIFORNIA MUNICIPAL FINANCE AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 2021-11
(CITY OF CHULA VISTA – OTAY RANCH VILLAGE 8 WEST)
The Board of Directors (“Board”) of the California Municipal Finance Authority is
considering the formation of a community facilities district (the “CFD”) under the authority of the
Mello-Roos Community Facilities Act of 1982, as amended, to fund certain public facilities related
to new development within the City of Chula Vista, and to incur bonded indebtedness of the CFD.
This Notice contains a brief summary of the proposal, but you are referred to the Board’s
Resolution of Intention (Resolution No. 21-__, adopted August 27, 2021) and its Resolution of
Intention to Incur Bonded Indebtedness (Resolution No. 21-_, adopted August 27, 2021) for
details of the proposal. The proposal is to subject the property within the CFD to a special tax
which will be used to pay for authorized facilities for the CFD, including paying principal and
interest on bonds used to pay for authorized facilities. The proceeds of the bonds will be used to
pay for the facilities and other expenses set forth in the resolutions referred to above. A map
showing the land proposed to be included in the CFD is on file with the Board.
As set forth below, the Board will hold a public hearing on the establishment of the CFD,
the facilities to be financed by the CFD, and the levy of the special tax within the CFD. The
proposal also includes authority to issue up to $128,350,000 in bonds for the CFD, to be repaid
by the special tax levied in the CFD. Neither the Board nor any person outside the CFD has any
liability for the special tax or the bonds. The security for the bonds issued for the CFD is limited
to the property subject to the special tax within the CFD. In order to confer the authority upon the
Board to levy the special tax and to issue the bonds, a public hearing must be held on the
proposal, then the Board will decide whether to form the CFD, and finally the qualified electors
within the CFD must approve the proposal by a two-thirds vote. Where the CFD is uninhabited
(as is the case here) the qualified electors are, pursuant to law, the owners of property within the
CFD.
This is the notice of the public hearing. The public hearing will be held during the Board
meeting on Friday, October 8, 2021, at the hour of 10:00 a.m., at 2111 Palomar Airport Road,
Suite 320, Carlsbad, CA 92011 and 13838 Meadow Lane, Lytle Creek, CA 92358 (Posted Only;
Dial in below to Participate); Telephonic Meeting Only (Dial in Number: (669) 900-6833 Access
Code: 84671819008#). At the hearing, the testimony of all interested persons or potential special
taxpayers for or against the formation of the CFD, the authorization to levy the special tax within
the CFD, and the authorization to issue the bonds for the will be heard. If written protests against
the proposed CFD are delivered to the Board at or before the time set for the hearing by either
registered voters residing within, or the owners of property within, the proposed CFD, they will be
counted toward a possible majority protest. Such protests by a majority of the registered voters
residing within the CFD or by the owners of a majority of the land area within the CFD which is or
will be subject to the special tax, if not withdrawn prior to the close of the hearing so as to reduce
the value of the protests to less than a majority, will require the proposed CFD to be eliminated
from immediate consideration, and prevent its being included in a subsequent proceedings for at
least one year. If the Board, after the public hearing, determines that a majority protest under
Section 53324 of the California Government Code was not made at the hearing, the Board may
conduct an election by mailed ballot to levy a special tax within the CFD.
A request for disability-related modification or accommodation, including auxiliary aids or
services, may be made by any person with a disability who requires a modification or
accommodation in order to participate in the public hearing by contacting Katrina Dair, Senior
Accountant, (760) 795-9187, kdair@cmfa-ca.com, 2111 Palomar Airport Rd, Suite 320, Carlsbad,
CA 92011.
RESOLUTION NO. 21-224
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CALIFORNIA
MUNICIPAL FINANCE AUTHORITY DECLARING IT INTENTION TO INCUR
BONDED INDEBTEDNESS IN AN AMOUNT NOT TO EXCEED $128,350,000
FOR THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY COMMUNITY
FACILITIES DISTRICT NO. 2021-11 (CITY OF CHULA VISTA – OTAY RANCH
VILLAGE 8 WEST ) TO FINANCE THE ACQUISITION AND CONSTRUCTION
OF CERTAIN PUBLIC FACILITIES AND DEVELOPMENT IMPACT FEES FOR
SUCH COMMUNITY FACILITIES DISTRICT
WHEREAS, the City of Chula Vista (the “City”) is a member of the California Municipal
Finance Authority (the “Authority”) and has approved use of the Authority’s Bond Opportunities
for Land Development (“BOLD”) Program to provide financing for development projects within the
boundaries of the City; and
WHEREAS, the Board of Directors (the “Board”) of the California Municipal Finance
Authority (the “Authority”) has duly this day adopted Resolution No. 21-222 (the “Resolution of
Intention”), wherein it declared its intention to establish a community facilities district under and
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),
to be known and designated as the “California Municipal Finance Authority Community Facilities
District No. 2021-11 (City of Chula Vista – Otay Ranch Village 8 West )” (the “CFD”), and to levy
a special tax within the CFD to finance the acquisition and construction of certain public facilities,
including those payable from development impact fees (the “Facilities”) listed in Exhibit A to the
Resolution of Intention and incorporated therein and made a part hereof; and
WHEREAS, in order to finance the costs of the Facilities it is necessary to incur bonded
indebtedness and other debt (as defined in the Act) in one or more series for the CFD; and
WHEREAS, no written protests with respect to the matters material to the questions set
forth in the Resolution of Intention to Incur Indebtedness have been filed with the Secretary; and
WHEREAS, the Board is fully advised in this matter;
NOW, THEREFORE, BE IT RESOLVED by the Board of the California Municipal Finance
Authority, as follows:
Section 1. The above recitals are true and correct, and the Board so finds and
determines.
Section 2. This Board deems it necessary to incur bonded indebtedness in the
maximum aggregate principal amount of $128,350,000 (the “Authorization”) within the boundaries
of the CFD for the purpose of financing the costs of the Facilities, including, but not limited to, the
costs of issuing and selling bonds to finance all or a portion of the Facilities, and the costs of the
Authority in establishing and administering the CFD. Indebtedness subject to this limit shall not
include refunding bonds described in Section 53362 of the Act, including any portion thereof which
utilize savings to finance authorized facilities not previously financed by the CFD, as described in
Section 53364.2 of the Act.
Section 3. The whole of the CFD shall pay for the bonded indebtedness through the
levy of the special tax. The tax is to be apportioned in accordance with the formula set forth in
Exhibit B to the Resolution of Formation.
Section 4. This Board, acting as legislative body for the CFD, intends to authorize the
issuance and sale of bonds and other debt in one or more series in the maximum aggregate
principal amount of not to exceed the Authorization bearing interest payable semi-annually or in
such other manner as this Board shall determine, at a rate not to exceed the maximum rate of
interest as may be authorized by applicable law at the time of sale of such bonds and other debt,
and maturing not to exceed 40 years from the date of the issuance of each series of the bonds
and other debt.
Section 5. Friday, October 8, 2021, at the hour of 10:00 a.m. or as soon as possible
thereafter, at 2111 Palomar Airport Road, Suite 320, Carlsbad, CA 92011 and 13838 Meadow
Lane, Lytle Creek, CA 92358 (Posted Only; Dial in below to Participate); Telephonic Meeting Only
(Dial in Number: (669) 900-6833 Access Code: 84671819008#), has been fixed as the time and
place when and where this Board, as legislative body for the CFD, will conduct a public hearing
on the proposed debt issue and consider and finally determine whether the public interest,
convenience and necessity require the issuance of bonds and other debt of the of the Authority
on behalf of the CFD.
Section 6. The Secretary is hereby directed to cause notice of the public hearing to
be given by publication one time in a newspaper of general circulation circulated within the CFD.
The publication of the notice shall be completed at least 7 days before the date specified above
for the public hearing. The Secretary may also cause notice of the hearing to be given to each
property owner within the CFD by first class mail, postage prepaid, to each such owner’s
addresses as it appears on the most recent tax records of San Diego County or as otherwise
known to the Secretary to be correct. Such mailing shall be completed not less than 15 days
before the date of the hearing. Each of the notices shall be substantially in the form specified in
Section 53346 of the Act, with the form summarizing the provisions hereof hereby specifically
approved.
Section 7. This Resolution shall in no way obligate the Board of the Authority to form
the CFD or to issue bonds or other debt for the CFD. Issuance of the bonds and other debt shall
be subject to the approval of this Board by resolution following the holding of the public hearing
referred to above.
Section 8. This Resolution shall take effect from and after its adoption.
PASSED AND ADOPTED by the California Municipal Finance Authority this 27th day of
August, 2021 by the following vote:
AYES: Alexander (Alt.), Connors, De Foor (Alt.), McCarthy, Watanabe
NOES: None
ABSTAIN: None
ABSENT: Adams, Moreno
* * * * *
l, the undersigned, a duly authorized official of the California Municipal
DO HEREBY CERTIFY that the foregoing resolution was duly adopted by
Finance Authority,
the Board of sard
rdance with law onAuthority at a duly called meeting of the Board of said Authority held in a
August 27 , 2421 .
By:
Authorized Sig ory
[Resolution of ]ntention to lncur Bonded lndebtedness - CMFA CFD 2021-11 (City of Chula
Vista - Otay Ranch Village 8 West )l