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HomeMy WebLinkAboutReso 2004-389 RESOLUTION NO. 2004-389 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2001-1 (SAN MIGUEL RANCH), DECLARING ITS INTENTION TO AUTHORIZE THE ANNEXATION OF CERTAIN TERRITORY TO SUCH COMMUNITY FACILITIES DISTRICT AND IMPROVEMENT AREA B THERETO WHEREAS, the City Council of the City of Chula Vista, California, ("City Council"), fonned a Community Facilities District and designated two improvement areas therein including Improvement Area B pursuant to the tenns 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"). The Community Facilities District has been designated as Community Facilities District No. 2001-1 (San Miguel Ranch) (the "District"); and WHEREAS, the City Council desires to initiate proceedings to consider the annexation of certain real property to the District (the "Territory") and Improvement Area B thereto; and WHEREAS, a map entitled "Annexation Map No. 1 to Community Facilities District No. 2001-1 (San Miguel Ranch), City of Chula Vista, County of San Diego, State of California" (the "Annexation Map") showing the Territory proposed to be annexed to the District and Improvement Area B thereto has been submitted, which map has been previously approved and a copy of the map shall be kept on file with the transcript of these proceedings; and WHEREAS, this City Council now desires to proceed to adopt its Resolution ofIntention to annex the Territory to the District and Improvement Area B thereto, to describe the Territory included within existing District and Improvement Area B thereto and the Territory proposed to be annexed thereto, to specify the facilities to be financed from the proceeds of the levy of special taxes within the Territory, to set and specify the special taxes that would be levied within the Territory to finance such facilities, and to set a time and place for a public hearing relating to the annexation of the Territory to the District and Improvement Area B thereto. NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: SECTION 1. Recitals. The above recitals are all true and correct. SECTION 2. Legal Authority. These proceedings for annexation are initiated by this City Council pursuant to the provisions of and authorization contained in the Community Facilities District Law. SECTION 3. Intention To Annex; Description Of Territory And The District. This legislative body hereby detennines that the public convenience and necessity requires that the Territory be added to the District and this City Council declares its intention to annex the Territory to the District and Improvement Area B thereto. Resolution 2004-389 Page 2 A description of the Territory is as follows: All that property within the Territory proposed to be annexed to the District and Improvement Area B thereto, as such property is shown on the Annexation Map as previously approved by this legislative body, a copy of which is on file in the Office of the City Clerk and shall remain open for public inspection. A general description of the territory included in the District is hereinafter described as follows: All that property and territory as originally included within the District, as such property was shown on a map of the original District as approved by this City Council and designated by the name of the original District. A copy of such map is on file in the Office of the City Clerk and has also been filed in the Office of the County Recorder. SECTION 4. Facilities Authorized To Be Financed By The District. The facilities that are authorized to be financed by the District from the proceeds of special taxes levied within the District (the "Facilities") are generally described in Exhibit A attached hereto and incorporated herein by this reference. These same Facilities are proposed to be financed by the levy of special taxes within the Territory upon the annexation thereof to the District and Improvement Area B thereto. The District shall finance all direct, administrative and incidental annual costs and expenses necessary to provide the Facilities. The Facilities authorized to be financed by the District from the proceeds of special taxes levied within Improvement Area B or the proceeds of bonds issued by the District for Improvement Area B and secured by the levy of such special taxes are the types of facilities to be provided in the Territory. If and to the extent possible the Facilities shall be provided in common within the District and the Territory. SECTION 5. Special Taxes. It is the further intention of this City Council body that, except where funds are otherwise available, a special tax sufficient to pay for the Facilities and related incidental expenses authorized by the Act, secured by recordation of a continuing lien against all non-exempt real property in the Territory, will be levied annually within the boundaries of such Territory. For further particulars as to the rate and method of apportionment of the proposed special tax, reference is made to Exhibit B (the "Rate and Method"), which is attached hereto and incorporated herein by this reference and which sets forth in sufficient detail the method of apportionment of such special tax to allow each landowner or resident within the proposed Territory to clearly estimate the maximum amount that such person will have to pay. The special tax proposed to be levied within the Territory shall be equal to the special tax levied to pay for the Facilities in Improvement Area B of the District, except that a higher or lower special tax may be levied within the Territory to the extent that the actual cost of providing the Facilities in the Territory is higher or lower than the cost of providing those Facilities in Improvement Area B of the District. Notwithstanding the foregoing, the special tax may not be levied at a rate which is higher that the maximum special tax authorized to be levied pursuant to the Rate and Method. The special taxes, 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 Resolution 2004-389 Page 3 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. Under no circumstances will the special tax to be levied against any parcel within the Territory and used for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within Improvement Area B of the District as a whole by more than 10 percent. This legislative body further authorizes that special taxes authorized to be levied within the Territory may be prepaid and satisfied by payment of the prepayment amount calculated pursuant to the Rate and Method. Upon recordation of a Notice of Special Tax Lien pursuant to Section 3114.5 of the Streets and Highways Code of the State of California, a continuing lien to secure each levy of the special tax shall attach to all non-exempt real property in the Territory and this lien shall continue in force and effect until the special tax obligation is prepaid and pennanently satisfied and the lien canceled in accordance with law or until collection of the tax by the legislative body ceases. The maximum special tax rate authorized to be levied within Improvement Area B of the District shall not be increased as a result of the annexation of the Territory to the District and Improvement Area B thereto. SECTION 6. Public Hearing. NOTICE IS GIVEN THAT ON JANUARY 11,2004, AT 6:00 P.M., IN THE REGULAR MEETING PLACE OF THE CITY COUNCIL, BEING THE COUNCIL CHAMBERS OF THE CITY OF CHULA VISTA, 276 FOURTH AVENUE, CHULA VISTA, CALIFORNIA, A PUBLIC HEARING WILL BE HELD WHERE THIS CITY COUNCIL WILL CONSIDER THE AUTHORIZATION FOR THE ANNEXATION OF THE TERRITORY TO THE DISTRICT, THE PROPOSED RATE AND METHOD OF APPORTIONMENT OF THE SPECIAL TAX TO BE LEVIED WITHIN THE TERRITORY AND ALL OTHER MATTERS AS SET FORTH IN THIS RESOLUTION OF INTENTION. AT SUCH PUBLIC HEARING, THE TESTIMONY OF ALL INTERESTED PERSONS FOR OR AGAINST THE ANNEXATION OF THE TERRITORY OR THE LEVYING OF SPECIAL TAXES WITHIN THE TERRITORY WILL BE HEARD. PROTESTS AGAINST THE PROPOSED ANNEXATION OF THE TERRITORY, THE LEVY OF SPECIAL TAXES WITHIN THE TERRITORY OR ANY OTHER PROPOSALS CONTAINED IN THIS RESOLUTION MAY BE MADE ORALLY BY ANY INTERESTED PERSON. ANY PROTESTS PERTAINING TO THE REGULARITY OR SUFFICIENCY OF THE PROCEEDINGS SHALL BE IN WRITING AND SHALL CLEARLY SET FORTH THE IRREGULARITIES OR DEFECTS TO WHICH OBJECTION IS MADE. ALL WRITTEN PROTESTS SHALL BE FILED WITH THE CITY CLERK PRIOR TO THE TIME FIXED FOR THE PUBLIC HEARING. WRITTEN PROTESTS MAY BE WITHDRAWN AT ANY TIME BEFORE THE CONCLUSION OF THE PUBLIC HEARING. SECTION 7. Majority Protest. If (a) 50% or more of the registered voters, or six registered voters, whichever is more, residing within the District, (b) 50% or more of the registered voters, or six registered voters, whichever is more, residing within the Territory, (c) owners of one-half or more of the area of land in the territory included in the District, or (d) owners of one-half or more of the area ofland in the territory included in the Territory, file written protests against the Resolution 2004-389 Page 4 proposed annexation of the Territory to the District and such protests are not withdrawn so as to reduce the protests to less than a majority, no further proceedings shall be undertaken for a period of one year from the date of the decision by the City Council on the issues discussed at the public hearing. SECTION 8. Election. Upon the conclusion of the public hearing, if the legislative body detennines to proceed with the annexation, a proposition shall be submitted to the qualified electors of the Territory. The vote shall be by registered voters within the Territory; however, if there are less than 12 registered voters, the vote shall be by landowners, with each landowner having one vote per acre or portion thereof within the Territory. SECTION 9. Notice. Notice of the time and place of the public hearing shall be given by the City Clerk by publication in a legally designated newspaper of general circulation, said publication pursuant to Section 6061 of the Government Code, with said publication to be completed at least seven days prior to the date set for the public hearing. Prepared by Approved as to fonn by Director 0--~ Ann Moore City Attorney Resolution 2004-389 Page 5 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 14th day of December, 2004, by the following vote: AYES: Councilmembers: Castaneda, Davis, McCann, Rindone and Padilla NAYS: Councilmembers: None ABSENT: Councilmembers: None ~ ATTEST: ~.1 ó...-L-t~1 /CJ Susan Bigelow, MMC, Ci Clerk --' STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2004-389 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 14th day of December, 2004. Executed this 14th day of December, 2004. - ~ -Ll. 6........¡--;;;:5., 'W- r,. ~ Susan Bigelow, MMC, City lerk EXHIBIT A COMMUNITY FACILITIES DISTRICT NO. 2001-1 (SAN MIGUEL RANCH) Description of Public Facilities . San Miguel Ranch Road . Proctor Valley Road Additional Facilities may be financed by proceeds of Development Impact and/or Acquisition Fees EXIHBlT ß AMENDED RATE AND METHOD OF APPORTIONMENT FOR CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 2001-1, IMPROVEMENT AREA B (San Miguel Ranch) A Special Tax as hereinafter defined sl1aJl be levied on all Assessor's Parcels ofTaxable Property within the City of Chula Vista Community Facilities District No. 2001-1 ("CFD No. 2001-1 Improvement Area B") and collected each Fiscal Year commencing in Fiscal Year 2Ó05-Ö6, in an 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 the real property in Improvement Area B, urness exempted by law or by the provisions hereo~ shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFlNITIONS . The terms hereinafter set forth have the following meanings: " 'A' Map" sball mean a master final subdivision or parcel map, filed in accordance with the Subdivision Map Act and the Chula Vista Municipal Code, which subdivides the land or a portion thereof shown on a tentative map into . super block" lots corresponding to units or phasing of a combination of units as shown on such tentative map and which may further show open space lot dedications, backbone street dedications and utility easements required to serve such "super block" lots. "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, record of survey, or other recorded document creating or describing the parcel. If the preceding maps are not available, the Acreage shall be determined by the City Engineer. "Act" means the Mello-Roos Community :Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 òfTitle 5 of the Government Code of the State ofCalifomia. "Administrative Expenses" meaJ15 the following actual or reasonably estimated costs directly related to the a.dministra.tion of Improvement AreaB ofCFD No. 2001-1 including, but not limited to, the following: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the County, the City, or otherwise); the costs ofremitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2001-1, or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2001-1, or any designee thereof of complying with disclosure requirements associated with applicable federal and state securities laws and of the Act; the costs associated with preparing Special Tax disclosure City ofChula Vista CommunitvFocilftles District No. 200]-1. ImlJTovementAreo B . Revised OctQber 2004 statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2001-1, or any designee thereof related to an appeal of the Special Tax; and the costs associated with the release of funds from an escrow account, if any. Administrative ExpeIJ8es shall also include amounts estimated or advanced by the City or CFD No. 2001-1, Improvement Area B for any other administrative purposes ofCFD No. 2001-1, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Assessor's Parcel" means a lot or parcel shown on an Assessor's Parcel Map with an assigned Assessor's Parcel DWnber. "Assessor's Parcel Map" means an official map of the County Assessor of the County designating parcels by Assessor's Parcel number. "Assigned Special Tu" means the Special Tax for each Land Use Category of Developed Property as detennined in accordance with Section C.l. a. "Available Funds" means the balance in the reserve fund establi&hed pursuant to the terms of the Indenture in excess of the reserve requirement as defined in such Indenture, delinquent Special Tax payments, the Special Tax prepayments collected to pay interest on Bonds, and other sources of funds available as a credit to the Special Tax Requirement as specified in such Indenture. "Backup Special Tax" means the Special Tax 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 No. 2001-1 for Improvement Area B under the Act. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and pravidingfoI the levy and collection of the Special Taxes. "CFD No. 2001-1" means City of Chula Vista, Community Facilities District No. 2001-1 (San Miguel Ranch). "City" means the City ofChula Vista. "Commercial Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more non-residential structures, excluding Community Purpose Facility Property. "Community Purpose Facility Property" means all Assessor's Parcels which are (a) classified as community purpose facilities and meet the requirements of City of Chula Vista Ordinance No. 2002-2883 as amended on November 5, 2002 or (b) designated with specific boundaries and acreage on an 'A' Map or Final Subdivision Map as a co=unity purpose facility. City ofChuia Vìsta Community Faä/ities Dislrict No. 2001-1, Improvement Area B San Mìguel Ronch Revised November 2004 f~ "Council" means the City Council of the City, acting as the legislative body of CFD No. 2001-1. "Collnty" means the County of San Diego. "Developed Property" means, for each Fiscal Year, all Taxable Property for which a building permit for new construction was issued prior to March 1 of the prior Fiscal Year. "Exempt Property" means all Assessor's Parcels that are exempt from the levy of the Special Tax pursuant to the provisions of Section E. "Final Ma p" means a subdivision of property created by recordation of a final map, parcel map, or lot line adjustment, approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) orrecordation ofa condominium plan pursuant to California Civil Code 13 52 that creates individual lots for which residential building permits may be issued without further subdivision of such property. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Improvement Area B" means Improvement Area B ofCFD No. 2001-1. "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 ftom 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 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 , that may be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property. "Outstanding Bonds" means all Bonds which remain outstanding. "Property Owner Association Property" means any property within the boundaries of CFD No. 2001-1 which is (a) owned by a property owner association or (b) is designated with specific boundaries and acreage on an 'A' Map or Final Subdivision Map as property owner association property. As used in this definition, a property owner association property includes any master or sub-association. City of CJtu fa Vista Commun;ty Facilities District No. 2001-1, Improvement Area B San Miguel Ranch Revised November 2004 Page 3 "Proportionately" means for Developed Property that the ratio of the actual Special Tax levy to the Assigned Special Tax or Backup Special Tax is equal for all Assessor's Parcels of Developed Property within Improvement Area B. For Undeveloped Property "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Annual Special Tax per Acre is equal for all Assessor's Parcels of Undeveloped Property within Improvement Area B. "Public Property" means any property within the boundaries of CFD No. 2001-1 that which (a) is owned by a public agency, (b) has been irrevocably offered for dedication, prior to June 1 st of the preceding Fiscal Year, to a public agency or (c) is designated with specific boundaries and acreage on an 'A' Map or Final Subdivision Map as property which. will be owned by a public agency. For purposes of this definition, a public agency includes the federal government, the State of California, the County, the City or any other public agency. "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units. "Residential Floor Area" means all of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Residential F100r Area shall be made by reference to appropriate records kept by the City's Building Department. Residential F100r Area will be based on the building permit(s) issued for each dwelling unit prior to it being classified as Residential Property, and shall not change as a result of additions or modifications made after such classification as Residential Property. "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 required in any Fiscal Year for CFD No. 2001-1, Improvement Area B to: (i) pay annual debt service on all Outstanding Bonds; (ü) pay periodic costs on the Bonds, including but not limited to, credit en1Jancement and rebate payments on the Bonds; (üi) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds in accordance with the Indenture; (v) and pay directly for acquisition and/or construction of public improvements which are authorized to be financed by CFD No. 2001-1 for Improvement Area B; (vi) less a credit for Available Funds. "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries of Improvement Area B) which are not exempt from the Special Tax pursuant to law or Section E below. "Trustee" means the trustee, fiscal agent, or paying agent under the Indenture. City ofChu/a Vista Community Facilities District No. 2001-1, 1mprovementArea B San Mi¡rue/ Ranch Revised Nayemher 2004 Page 4 "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property. "Zone 1" means a specific geographic area as depicted in Exhibit A attached hereto. "Zone 2" means a specific geographic area as depicted in Exhibit A attached hereto. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, all Taxable Property within Improvement Area B shall be classified as Developed Property or Undeveloped Property and shall be subject to the levy of annual Special Taxes determined pursuant to Sections C and D below. Furthermore, Developed Property shall be classified as Residential Property or Commercial Property. C. MAXIMUM ANNUAL SPECIAL TAX RATE 1. Developed Property The Maximum Annual Special Tax for each Assessor's Parcel of Residential Property or Commercial Property that is classified as Developed Property shall be the greater of (1) the Assigned Special Tax described in Table 1 below or (2) the amount derived by application of the Backup Special Tax. a. Assimed Special Tax The Assi¡p:¡ed Special Tax for each Assessor's Parcel of Developed Property is shown in Table 1. TABLE 1 Assigned Special Tax for Developed Property within Zone 1 and Zone 2 Land Use Gass 1 Descri non Residential Property Assi ned S ecial Tax $475.00 per unit plus $0.82 per square foot of Residential Floor Area $4,000 per Acre ofCo=ercial Pro 2 Commercial Property City ofChu/a Vista Community Facilities District No. 2001-1, Improvement Area B SQJ1 Mi""e¡ RQJ1ch Revised November 2004 Page 5 b. Backup Soecial Tax 'iVhen a Final Map is recorded within Zone 1 or Zone 2, the Backup Special Tax for Assessor's Parcels of Developed Property classified as Residential Property or Commercial Property shall be determined as follows: For each Assessor's Parcel of Developed Property classified as Residential Property or for each Assessor's Parcel of Undeveloped Property to be classified as Residential Property within the Final Map area, the Backup Special Tax shall be the rate per Lot calculated according to the following formula: Zone 1 $lO,444xA B= ------------- L Zone 2 $4,444 x A B= -------------- 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 Map. L = Lots in the Final Map which are classified or to be classified as Residential Property. For each Assessor's Parcel of Developed Property classified as Commercial Property or for each Assessor's Parcel of Undeveloped Property to be classified as Co=ercial Property within the Final Map area, the Backup Special Tax shall be determined by multiplying $10,444 for Zone 1 and $4,444 for Zone 2 by the total Acreage of the Commercial Property and Undeveloped Property to be classified as Co=ercial Property within the Final Map area. Notwithstandiog the foregoing, if Assessor's Parcels of Residential Property, Commercial Property or Undeveloped Property for which the total Backup Special Tax has been determined are subsequently changed or modified by recordation of a new or amended Final Map, then the total Backup Special Tax applicable to such Assessor's Parcels shall be recalculated to equal the amount of total Backup Special Tax that would have been generated if such change did not take place. City ofClrula Vista Community Facilities District No. 2001-1, Improvement Area B San Miguel Ranch Revised November 2004 Page 6 2. Undeveloped Property The Maximum Annual Special Tax for each Assessor's Parcel classified as Undeveloped Property shall be $10,444 per Acre for Zone 1 and $4,444 per Acre for Zone 2. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2005-06 and for each following Fiscal Year, the Council shall· determine the Special Tax Requirement and shall levy th.e Special Tax until the amount of Special Taxes equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows: First: The Special Tax shall be levied on each Assessors Parcel of Developed Property at a rate up to 100% of the applicable Assigned Special Tax to satisfy the Special Tax Requirement. Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property, excluding any Assessor's Parcels classified as Undeveloped Property pursuant to Section E, at up to 100% of the Maximum Annual Special Tax for Undeveloped Property. Third: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax to be levied on each Assessor's Parcel whose Maximum Annual Special Tax is derived by the application of the Backup Special Tax and 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 th.e Special Tax Requirement after 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 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 Assessor's Parcel of Residential Property be increased by more than ten percent per year as a consequence of delinquency or default in the payment of Special Taxes by the owner of any other Assessor's Parcel in Improvement Area B. City ofChula VIsta CommunÌt)l Facilities District No. 2001-1, ImpravementArea B San Mií(Uel Ranch _ RlNised November 2004 PaRe 7 E. EXEMPTIONS 1. The CFD Aciministrator shall classify as Exempt Property (i) Assessor's Parcels defined as Public Property, (ü) Assessor's Parcels defined as Property Owner Association Property, (iii) Assessor's Parcels defined as Co=unity Purpose Fa.cility Property or (iv) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, provided that no such classification would reduce the sum of all Taxable Property to less than 100.94 Acres in Zone 1 and 9.63 Acres in Zone 2. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than 100.94 Acres in Zone 1 and 9.63 Acres in Zone 2 will be classified as Undeveloped Property and sha11 be taxed as such. Tax-exempt status for purposes of this paragraph will be assigned by the CFD Administrator in the chronological order in which property becomes Exempt Property. 2. The Maximum Annual Special Tax obligation for any Public Property which cannot be classified as Exempt Property as described in the fust paragraph of Section E shall be prepaid in full by the seller pursuant to Section H.I, prior to the transfer/dedication of such property. Until the Maximum Annual Special Tax obligation for any such Public Property is prepaid, the property shall continue to be subject to the levy of the Special Tax as Undeveloped Property. 3. lfthe use of an Assessor's Parcel of Exempt Property changes so that such Assessor's Parcel is no longer classified a.s one of the uses set forth in paragraph I that would make such Assessors Parcel eligible to be classified as Exempt Property, such Assessors Parcel aball cease to be classified as Exempt Property and abaI1 be deemed to be Taxable Property. F. REVIEW/APPEAL COMMITTEE The Council shall establish as part of the proceedings and administration of CFD No. 200 I- I, Improvement Area B a special three-member Review/Appeal Committee. Any landowner or resident who feels that the amount of the Special Tax levied on their Assessor's Parcel is in error may file a written notice with the Review/Appeal Committee appealing the amount of the Special Tax levied on such Assessor's Parcel. The Review/Appeal Committee may establish such procedures¡ as it deems necessary to undertake the review of any such appeal. The Review/Appeal Committee shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals, as herein specified. The decision of the Review/Appeal Committee shall be final and bindiDg as to all persons. City ofCltula VIsta Community Facilities Disirict No. 200/-1, Improvement Area B San Miguel Ranch Revised Nl7Vember 2004 Pa"e 8 G. MANNER OF COLLECTION The annual Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 2001-1, Improvement Area B may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on Assessors Parcels which are delinquent in the payment of Special Taxes. Tenders of Bonds may be accepted for payment of Special Taxes upon the terms and conditions established by the Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the Council. H. PREPAYMENT OF SPECIAL TAX The following definition applies to this Section H: "CFD Public Facilities" means those public facilities authorized to be financed by Improvement Area B. "CFD Public Facilities Costs" means either $9.75 million, or such lower number as shall be det=ined either by (a) the CFD Administrator as sufficient to finance the CFD Public Facilities, or (b) 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 are 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 CFD Public Facilities Costs previously funded (i) from the proceeds of all previously issued Bonds, (li) ftom interest earnings on the Construction Fund actually earned prior to the date of prepayment and (iii) directly from Special Tax revenues and (b) the amount of the proceeds of all previously issued Bonds then on deposit in the Construction Fund. "Outstanding Bonds" means all previously issued Bond~which will remain outstanding after the first interest and/or principal payment date following the current Fis'cal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Maximum Annual Special Taxes. City ofChula Vìst£¡ Community Facilities District No. 2001-1, ImpravemenlArea B Scur MiKUel Ranch Revised November 2004 .. Page 9 1. Prepayment in Full The Maximum Annual Special Tax obligation may only be prepaid and permanently satisfied by an Assessor's Parcel of Developed Property, Undeveloped Property for which a bulidiog 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 pennanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Maximum Annual Special Tax obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount of such Assessor's Parcel. The CFD Administrator may charge a. reasonable fee for providing this figure. The Prepayment Amount (defined below) shall be calculated as summorized below (capitalized tenns 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 Capitalized Interest Credit Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount (defined below) shall be calculated as follows: Paragraph No.: 1. For Assessor's Parcels of Developed Property, compute the Maximum Annual Special Tax for the Assessor's Parcel to be prepaid. For Assessor's Parcels of Undeveloped Property to be prepaid, compute the Maximum Annual Special Tax for that Assessor's Parcel as though it was already designated as Developed Property, based upon the building permit which has already been issued for that Assessor's Parcel. For Assessor's Parcels of Public Property to be prepaid, compute the Maximum Annual Special Tax for that Assessor's Parcel using the Maximum Annual Special Tax for Undeveloped Property. 2. Divide the Maximum Annual Special Tax computed pursuant to paragraph 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 the Maximum Annual Special Tax obligation has been previously prepaid. City ofCJruia Vista Community Focilities D¡;trfct No. 2001-1. Improvement Area B San Miguel Ranch Revised Nr¡vemher 2004 Page 10 3. Multiply the quotient computed pursuant to paragraph 2 by the principal amount of Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the "Bond Redemption Amount"). 4. Multiply the Bond Redemption Amount computed pursuant to paragraph 3 by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the ''Redemption Premium"). 5. If all the Bonds authorized to be issued for Improvement Area B have not been issued, compute the Future Facilities Costs. 6. 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"). 7. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date folloWÌDg the current Fiscal Year until the earliest redemption date for the Outstanding Bonds. 8. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel. 9. Determine the Special Taxes levied on the Assessor's Parcel in the current Fiscal Year which have not yet been paid. 10. Determine the fees and expenses of Improvement Area B, 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. Compute the amount the CFD Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount less the Prepayment Fees and Expenses as determined pursuant to paragraph 10, from the date of prepaYment until the redemption date for the Outst"nrling Bonds to be redeemed with the prepayment. 12. Add the amounts computed pursuant to paragraphs 7 and 9 and subtract the amount computed pursuant to paragraph 11 (the "Defeasance Amount"). 13. The reserve fund credit (the "Reserve Fund Credit") shall equal the lesser of (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero. City ojChula Vista Community FacjJjfjesDlstric/ No. 200l-l, ImpnYVe1MntA~eo B San Miguel Ranch R....lsed N(]\Iembe~ 2004 - Page 11 14. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the fust interest and/or principal payment following the CUITent Fiscal Year, a capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to paragraph 2 by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the "Capitalized Interest Credit"). 15. The Maximum Annual Special Tax prepayment is equal to the sum of the amounts 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 amOlmts 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 No. 2001- 1, Improvement Area B. The amount computed pursuant to paragraph 6 shall be deposited in the Construction Fund. The Prepayment Amount may be insufficient to redeem other than a $5,000 increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of bonds or to make debt service payments. As a result of the payment of the current Fiscal Year's Special Tax levy as determined under paragraph 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 CFD Administrator 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 AIlIlUal Special Taxes that may be levied on Taxable Property within CFD·No. 2001-1, 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 t=s 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 obligation on an Assessor's Parcel of Developed Property or an Assessor's Parcel of Undeveloped Property for which a building p=it has been issued may be partially prepaid. The amount of the prepayment shall be calculated as City ofChula Vista Community Facilities District No. 1001-1, Improvement Area B Sart Mif(UeI Ranch Revised November 1004 PaKe 11 in Section H.l: except that a partial prepayment shall be calculated according to the following formula: PP = (PE X F) + A These tenns have the following meaning: PP = the partial prepayment PE = the Prepayment Amount calculated according to Section H.l, minus Prepayment Fees and Expenses pursuant to Step 10. F = the percent by which the owner of the Assessor's Parcel(s) is partially prepaying the Maximum Annual Special Tax. A= the Prepayment Fees and Expenses pursuant to Step 10. The owner of an Assessor's Parcel who desires to partially prepay the Maximum Annual Special Tax shall notify the CFD Administrator of (i) such owner's intent to partially prepay the Maximum Annual Special Tax, (ii) the percentage by which the Maximum Annual Special Tax shall be prepaid, and'(üi) the company or agency that will be acting as the escrow agent, if applicable. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Maximum Annual Special Tax for an Assessor's Parcel within 30 days of the request and may charge a reasonable fee for providing this service. With respect to any Assessor's Parcel that is partially prepaid, the City shall (i) distribute the funds remitted to it according to Paragraph 16 of Section H.l, and (ii) indicate in the records ofCFD No. 2001-1, Improvement Area B that there has been a partial prepayment of the Maximum Annual Special Tax and that a portion of the Maximum Annual Special Tax equal to the outstanding percentage (1.00 - F) of the remaining Maxùnum 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 2005-06 to the extent necessary to fully satisfy the Special Tax Requirement for a period no longer than 2041-42. City of Chu/a Vista Community Facilities District No. 20aI~1. Improvement Area B San Mi¡;uel Ranch R~ed November 2004 ~ .. ~, Page J3