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HomeMy WebLinkAboutReso 2005-024 RESOLUTION NO. 2005-024 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), MAKING CERTAIN DETERMINATIONS AND AUTHORIZING SUBMITTAL OF THE LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS OF CERTAIN TERRITORY PROPOSED TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2001-1 (SAN MIGUEL RANCH) AND IMPROVEMENT AREA B THERETO WHEREAS, the City Council of the City of Chula Vista, California (the "City Council"), has previously declared its intention and held and conducted proceedings relating to the annexation of territory (the "Annexation Area") to an existing Community Facilities District and an improvement area thereto 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, and specifically Article 3.5 thereof (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 existing Community Facilities District has been designated as Community Facilities District No. 2001-1 (San Miguel Ranch) (the "District") and the improvement area has been designated as Improvement Area B; and WHEREAS, notice of a public hearing relating to the annexation of such territory to the District and Improvement Area B thereto, the extent of such territory, the financing of certain public improvements and all other related matters has been given; and WHEREAS, it has now been determined that written protests have not been received by 50% or more of the registered voters residing either within the Annexation Area or the District and/or property owners representing more than one-half or more of the area of land within the Annexed Area or within the District; and WHEREAS, inasmuch as there have been less than twelve persons registered to vote within the Annexation Area for each of the ninety preceding days, this legislative body desires to submit the levy of the required special tax to the landowners of the Annexation Area, said landowners being the qualified electors as authorized by law. NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: SECTION I. RECITALS. The above recitals are all true and correct. SECTION 2. DETERMINATIONS. It is determined by this City Council that: A. All proceedings to consider the annexation of the Annexation Area to the District and Improvement Area 8 thereto prior hereto were valid and taken in conformity with the requirements of law, and specifically the provisions of the Community Facilities District Law, and this finding is made pursuant to the provisions and authorization of Section 53325.1 of the Government Code of the State of California; and Resolution 2005-024 Page 2 B. The annexation of the Annexation Area to the District and Improvement Area B thereto as proposed conforms with the City of Chula Vista Statement of Goals and Policies Regarding the Establishment of Community Facilities Districts; and C. Less than twelve registered voters have resided within the Annexation Area for each of the ninety days preceding the close of the public hearing and, consequently, the qualified electors shall be the landowners of the Annexation Area and each landowner who is the owner of record as of the close of the public hearing, or the authorized representative thereof, shall have one vote for each acre or portion of an acre of land that she or he owns within the Annexation Area; and D. The time limit specified by the Community Facilities District Law for conducting an election to submit the levy of the special taxes to the qualified electors of the Annexation Area and the requirements for impartial analysis and ballot arguments have been waived with the unanimous consent of the qualified electors of the Annexation Area; and E. The City Clerk, acting as the election official, has consented to conducting any required election on a date which is less than 125 days following the adoption of any resolution annexing the Annexation Area to the District and Improvement Area B thereto; and F. The public facilities proposed to be financed from the proceeds of special taxes to be levied within the Annexation Area are necessary to meet increased demands placed upon the City of Chula Vista as a result of development and/or rehabilitation occurring in the Annexation Area. SECTION 3. BOUNDARIES OF ANNEXED AREA. The boundaries and parcels of land in the Annexation Area and on which special taxes are proposed to be levied in order to pay the costs and expenses for the public facilities described in Section 4 below are generally described as follows: All that property and territory proposed to be annexed to the District, as said property is shown on a map as previously approved by this legislative body, said map designated as Annexation Map No. I of Community Facilities District No. 200 I-I (San Miguel Ranch), a copy of which is on file in the Office of the City Clerk and shall remain open for public inspection. SECTION 4. DESCRIPTION OF PUBLIC FACILITIES. 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. 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 are the types of facilities to be provided in the Annexation Area. If and to the extent possible, the Facilities shall be provided in common within Improvement Area B and the Annexation Area. Resolution 2005-024 Page 3 SECTION 5. SPECIAL TAXES. Except where funds are otherwise available a special tax, secured by recordation of a continuing lien against all non-exempt real property in the Annexation Area, is hereby authorized, subject to voter approval, to be levied within the boundaries of the Annexation Area. For particulars as to the rate and method of apportionment of the special tax proposed to be levied within the Annexation Area, reference is made to the attached and incorporated Exhibit "B" (the "Rate and Method of Apportionment"), which sets forth in sufficient detail the method of apportionment of the special tax to allow each landowner or resident within the Annexation Area to estimate the maximum amount that such person will have to pay. Such special tax shall be utilized to pay directly for the previously described types of facilities, to pay debt service on bonds issued by the District for Improvement Area 8 to assist in financing such types of facilities, to replenish any reserve fund established for such bonds, and to pay the costs of administering the bonds, the District and Improvement Area B. The special taxes herein authorized, to the extent possible, shall be collected in the same manner as ad valorem property taxes and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency as applicable for ad valorem taxes; provided, however, the District may utilize a direct 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 Annexation Area 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 by more than 10 percent. This legislative body further authorizes that special taxes may be prepaid and satisfied by payment of the prepayment amount calculated pursuant to the Rate and Method of Apportionment. 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 against the property within the Annexation Area, a continuing lien to secure each levy of the special tax shall attach to all non-exempt real property in the Annexation Area and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the tax by the legislative body ceases. SECTION 6. SPECIAL TAX ACCOUNTABILITY MEASURES. Pursuant to and in compliance with the provisions of Government Code Section 50075.1, this City Council hereby establishes the following accountability measures pertaining to the levy by the District of the special taxes within the Annexation Area as described in Section 5 above: A. Each such special tax shall be levied for the specific purposes set forth in Section 5. above. B. The proceeds of the levy of each such special tax shall be applied only to the specific applicable purposes set forth in Section 5. above. C. The District shall establish a separate account into which the proceeds of the special taxes levied within Improvement Area B shall be deposited. Resolution 2005-024 Page 4 D. The City Manager or his or her designee, acting for and on behalf of the District, shall annually file a report with the City Council as required pursuant to Government Code Section 50075.3. SECTION 7. ELECTION. The proposition related to the levy of the special tax shall be submitted to the qualified electors of the Annexation Area, said electors being the landowners, with each landowner having one vote for each acre or portion thereof of land which he or she owns within said annexed territory. The special election shall be held on January 24, 2005, and such election shall be a special election to be conducted by the City Clerk (hereinafter "Election Official"). If the proposition for the levy of the special tax receives the approval of more than two-thirds of the votes cast on the proposition, the special tax may be levied as provided for in this resolution. SECTION 8. BALLOT. The ballot proposal to be submitted to the qualified voters at the election shall generally be as follows: PROPOSITION A CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 2001-1, IMPROVEMENT AREA B ANNEXATION MAP NO. I AUTHORIZATION FOR SPECIAL TAX LEVY Shall Community Facilities District No. 2001-1 (San Miguel Ranch) of the City ofChula Vista be authorized to levy special taxes, subject to the accountability measures set forth in Resolution No. 2005-024, within the territory identified in Annexation Map No.1 to such district and Improvement Area B therein pursuant to the rate and method of apportionment of special taxes (the "Rate and Method") set forth in such resolution for the purpose of paying debt service on bonds of such district issued for Improvement Area B, replenishing the reserve fund for such bonds, paying costs of administering such indebtedness and such district and paying directly for the types of facilities described in such resolution? SECTION 8. VOTE. The appropriate mark placed in the box after the word "YES" shall be counted in favor of the adoption of the proposition, and the appropriate mark placed in the box after the word "NO" in the manner as authorized, shall be counted against the adoption of said proposition. SECTION 9. ELECTION PROCEDURE. This City Council hereby authorizes the Election Official to take any and all steps necessary for the holding of said election and ratifies any such steps previously taken by such Election Official which were necessary for the holding of such election. Said Election Official shall perform and render all services and proceedings incidental to and connected with the conduct of said election, and said services shall include, but not be limited to the following: A. Prepare and furnish to the election officers necessary election supplies for the conduct of the election. B. Cause to be printed the requisite number of official ballots, tally sheets and other necessary forms. Resolution 2005-024 Page 5 C. Furnish and address official ballots for the qualified electors of the Annexation Area. D. Cause the official ballots to be mailed and/or delivered, as required by law. E. Receive the returns of the election. F. Sort and assemble the election material and supplies III preparation for the canvassing of the returns. G. Canvass the returns of the election. H. Furnish a tabulation of the number of votes given in the election. 1. Make all arrangements and take the necessary steps to pay all costs of the election incurred as a result of services performed by the District and pay costs and expenses of all election officials. J. Conduct and handle all other matters relating to the proceedings and conduct of the election in the manner and form as required by law. Prepared by Approved as to form by ices Director ~,,~\t\\1\( .,",,\'Cì~~ Ann Moore ' City Attorney Resolution 2005-024 Page 6 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 25th day of January, 2005, by the following vote: AYES: Councilmembers: Castaneda, Davis, McCann, Rindone and Padilla NAYS: Councilmembers: None ABSENT: Councilmembers: None ATTEST: ~ r3.'g:J. ~Q --' Susan Bigelow, MMC, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2005-024 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 25th day of January, 2005. Executed this 25th day of January, 2005. -~ ~ LL 6v....r r ~~þ .c-. Susan Bigelow, MMC, City erk J ~_ _...____ __ ._'"_.__..~ __u_ EXHIBIT "A" DESCRIPTION OF TYPES OF FACILITIES . San Miguel Ranch Road · Proctor Valley Road Additional Facilities may be flllanced by proceeds of Development Impact and/or Acquisition Fees A -1 EXHIBIT B RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES . B-1 RATE AND METHOD OF APPORTIONMENT FOR CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 2001-1, IMPROVEMENT AREA A (San Miguel Ranch) A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels of Taxable Property within the City of Chula Vista Community Facilities District No. 2001-1 ("CFD No. 2001-1, Improvement Area A") and collected each Fiscal Year commencing in Fiscal Year 2002-03, in an amount determined by the City Council through tbe application oftbe appropriate Special Tax for "Developed Property," and "Undeveloped Property," as described below. All of tbe real property in CFD No. 2001-1, Improvement Area A, unless exempted by law or by tbe provisions hereof, shall be taxed for tbe purposes, to tbe extent and in tbe manner herein provided. A. DEFINITIONS The terms hereinafter set forth have tbe following meanings: "Acre or Acreage" means tbe land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if tbe land area is not shown on an Assessor's Parcel Map, tbe land area shown on tbe applicable final map, parcel map, condominium plan, record of survey, or otber recorded document creating or describing tbe parcel. If tbe preceding maps are not available, tbe Acreage shall be determined by tbe City Engineer. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code oftbe State of California. "Administrative Expenses" means tbe following actual or reasonably estimated costs directly related to tbe administration of CFD No. 2001-1, Improvement Area A including, but not limited to, the following: tbe costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee tbereof or both); the costs of collecting the Special Taxes (whetber by the County, the City, or otherwise); the costs of remitting the Special Taxes to tbe 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, Improvement Area A or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2001-1, Improvement Area A or any designee thereof of complying with City, CFD No. 2001-1, Improvement Area A or obligated persons· disclosure requirements associated with applicable federal a.i1d state securities laws and of the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2001-1, Improvement Area A or any designee thereQf related to an appeal of the Special Tax; and the costs associated with the release of funds from an escrow account, if any. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2001-1, Improvement Area A for any otber administrative purposes. of CFD No. 2001-1, Improvement Area A, including attorney's fees and other costs related to commencmg and pursulllg 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 number. "Assessor's Parcel Map" means an official map of the County Assessor of the County designating parcels by Assessor's Parcel number. "Assigned Special Tax" means the Special Tax for each Land Use Category of Developed Property as determined in accordance with Section C.I.a. "Available Funds" means the balance in the reserve fund established pursuant to the terms of tbe Indenture in excess of the reserve requirement as defmed in such Indenture, delinquent special tax payments, tbe 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 tbe Special Tax amount set forth in Section C.l.b. below. "Bonds" means any bonds or other debt (as defined in the Act), whetber in one or more series, issued by CFD No. 2001-1, Improvement Area A under the Act. "CFD Administrator" means an official of tbe City, or designee tbereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD No. 2001-1, Improvement Area A" means City of Chula Vista, Community Facilities District No. 2001-1, Improvement Area A (San Miguel Ranch). "City" means the City of Chula 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 classified as community purpose facilities and meet the requirements of City of Chula Vista Ordinance No. 2452. "Council" means the City Council of tbe City, acting as the legislative body of CFD No. 2001-1, Improvement Area A. "County" 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. "Final Map" means a subdivision of property created by recordation of a fmal map, parcel map, or lot line adjustment, approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 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. "Indenture" means tbe indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. "Land Use Class" means any of the classes listed in Tables I and 2 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 tbe owner of the predominant amount of Undeveloped Property in CFD No. 2001-1, Improvement Area A. "Maximum Annual Special Tax" means the maximum annual Special Tax, determined in accordance with the provisions of Section C below, that may be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property. "Occupied Residential Property" means all Assessor's Parcels of Residential Property which have closed escrow to an end user. "Outstanding Bonds" means all Bonds which remain outstanding. "Property Owner Association Property" means any property within tbe boundaries of CFD No. 2001-1, Improvement Area A owned by or dedicated to a property owner association, including any master or sub-association. "Proportionately" means for Developed Property that the ratio of tbe actual Special Tax levy to the Assigned Special Tax or Backup Special Tax is equal for all Assessor's Parcels of Developed Property within CFD No. 2001-1, Improvement Area A. For Undeveloped Property "Proportionately" means that tbe ratio of the actual Special Tax levy per Acre to the Maximum Annual Special Tax per Acre is equal for all Assessor's Parcels of Undeveloped Property within CFD No. 2001-1, Improvement Area A. "Public Property" means any property within the boundaries of CFD No. 2001-1, Improvement Area A that is used for rights-of-way or any otber purpose and is owned by or dedicated to the federal government, the State of California, the County, the City or any otber 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 tbe square footage of living area witbin the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Residential Floor Area shall be made by reference to appropriate records kept by tbe City's Building Department. Residential Floor Area will be based on the building permit(s) issued for each dwelling unit prior to it being classified as Occupied Residential Property, and shall not change as a result of additions or modifications made after such classification as Occupied Residential Property. "Special Tax" means the 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 tbat amount required in any Fiscal Year for CFD No. 2001-1, Improvement Area A to: (i) pay annual debt service on all Outstanding Bonds as defined in Section A.; (ii) pay periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on tbe Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds in accordance with the Indenture; (v) and pay directly for acquisition and/or construction of public improvements which are authorized to be financed by CFD No. 2001-1, Improvement Area A; (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 ofCFD No. 2001-1, Improvement Area A 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 ·tbe Indenture. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, all Taxable Property within CFD No. 2001-1, Improvement Area A 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) tbe Assigned Special Tax described in Table 1 below or (2) the amount derived by application of the Backup Special Tax. a. AssÎ!med Special Tax The Assigned Special Tax for each Assessor's Parcel of Developed Property is shown in Table 1. TABLE 1 Assigned Special Tax for Developed Property Land Use Class Descri tion Residential Property Assi ned S ecial Tax $475.00 per unit plus $0.34 per square foot of Residential Floor Area $5,091 per Acre of Commercial Pro ert 1 2 Commercial Property b. Backup Special Tax When a Final Map is recorded witbin Improvement Area A, 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: $10,376xA 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 Co=ercial Property or for each Assessor's Parcel of Undeveloped Property to be classified as Commercial Property within tbe Final Map area, the Backup Special Tax shall be determined by multiplying $10,376 by tbe total Acreage of the Commercial Property and Undeveloped Property to be classified as Commercial Property within the Final Map area. Notwithstanding the foregoing, if Assessor's Parcels of Residential Property, Commercial Property or Undeveloped Property for which the Backup Special Tax has been determined are subsequently changed or modified by recordation of a new or amended Final Map, then tbe Backup Special Tax applicable to such Assessor's Parcels shall be recalculated to equal tbe amount of Backup Special Tax tbat would have been generated if such change did not take place. 2. Undeveloped Property The Maximum Annual Special Tax for each Assessor's Parcel -classified as Undeveloped Property shall be the amount shown in Table 2 below: TABLE 2 Maximum Annual S ecial Tax for Undevelo Land Use Class 3 erty Maximum Annual S ecial Tax $10,376 er Acre D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing witb Fiscal Year 2002-03 and for each following Fiscal Year, the Council shall determine the Special Tax Requirement and shall levy the Special Tax until tbe 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 Assessor's Parcel of Developed Property at a rate up to 100% of the applicable Assigned Special Tax to satisfy tbe Special Tax Requirement. Second: If additional monies are needed to satisfy the Special Tax Requirement after tbe 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, tbe 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 shall be increased Proportionately from the Assigned Special Tax up to tbe Maximum Annual Special Tax for each such Assessor's Parcel. Fourth: If additional monies are needed to satisfy the Special Tax Requirement after tbe 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. Notwitbstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel of Occupied Residential Property be increased by more than ten percent per year as a consequence of delinquency or default in the payment of Special Taxes by tbe owner of any other Assessor's Parcel of CFD No. 2001-1, Improvement Area A. E. EXEMPTIONS The CFD Administrator shall classify as exempt property (i) Assessor's Parcels defIned as Public Property, (ü) Assessor's Parcels defined as Property Owner Association Property, (iü) Assessor's Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iv) Assessor's Parcels defmed as Community Purpose Facility Property or (v) Assessor's Parcels with public or utility easements making impractical tbeir utilization for otber than the purposes set forth in tbe easement, provided tbat no '~ch classification would reduce the sum of all Taxable Property to less than 121.93 Acres. Notwithstanding tbe above, the CFD Administrator shall not classify an Assessor's Parcel as exempt property if such classification would reduce tbe sum of all Taxable Property to less than 121. 93 Acres. Assessor's Parcels which cannot be classified as exempt property because such classification would reduce the Acreage of all Taxable Property to less tban 121.93 Acres will be classified as Undeveloped Property and shall be taxed as a part of the fourth step in Section D. Tax-exempt status will be assigned by the CFD Administrator in tbe chronological order in which property becomes exempt property. The Maximum Annual Special Tax obligation for any Public Property which cannot be classified as exempt property as described in tbe first paragraph of Section E shall be prepaid in full by the seller pursuant to Section H.l, prior to the transfer/dedication of such property. Until the Maximum Annual Special Tax obligation for any such Public Property is prepaid, the property shall continue to be subj ect to tbe levy of the Special Tax as Undeveloped Property pursuant to the fourth step in Section D. F. REVIEW/APPEAL COMMITTEE The Council shall establish as part oftbe proceedings and administration ofCFD No. 2001- 1, Improvement Area A a special three-member Review/Appeal Committee. Any landowner or resident who feels tbat 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 tbe Special Tax levied on such Assessor's Parcel. The Review/Appeal Committee may establish such procedures as it deems necessary to undertake tbe review of any such appeal. The Review/Appeal Committee shall interpret this Rate and Metbod of Apportionment and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals, as herein specified. The decision of the Review/Appeal Committee shall be final and binding as to all persons. 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 A may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on Assessor's Parcels which are delinquent in the payment of Special Taxes. Tenders of Bonds may be accepted for payment of Special Taxes upon the terms and conditions established by the Council pursuant to the Act. However, tbe use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by tbe Council. . T H. PREPAYMENT OF SPECIAL TAX The following definition applies to this Section H: "Outstanding Bonds" means all previously issued Bonds which will remain outstanding àfter the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Maximum Annual Special Taxes. 1. Prepayment in Full The Maximum Annual Special Tax obligation may only be prepaid and permanently satisfied by an Assessor's Parcel of Developed Property, Undeveloped Property for which a building permit has been issued, or Public Property. The Maximum Annual Special Tax obligation applicable to such Assessor's Parcel may be fully prepaid and the obligation of the Assessor's Parcel to pay the Special Tax permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Maximum Annual Special Tax obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount of such Assessor's Parcel. The CFD Administrator may charge a reasonable fee for providing tbis figure. The Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below): Bond Redemption Amount plus plus plus less less Total: equals Redemption Premium Defeasance Amount Administrative Fees and Expenses Reserve Fund Credit Cavitalized 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 tbe building permit which has already been issued for that Assessor's Parcel. F or 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 tbe sum of the total expected Maximum Annual Special Tax revenues excluding any Assessor's Parcels which have been prepaid. 3. Multiply tbe quotient computed pursuant to paragraph 2 by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the "Bond Redemption Amounf'). 4. Multiply the Bond Redemption Amount computed pursuant to paragraph 3 by the applicable redemption premium, if any, on tbe Outstanding Bonds to be redeemed (the "Redemption Premium"). 5. Compute the amount needed to pay interest on the Bond Redemption Amount from the fIrst bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds. 6. ConfIrm that no Special Tax delinquencies apply to such Assessor's Parcel. 7. Determine tbe Special Taxes levied on tbe Assessor's Parcel in the current Fiscal Year which have not yet been paid. 8. Compute the amount the CFD Administrator reasonably expects to derive from tbe reinvestment of the Prepayment Amount less tbe Administrative Fees and Expenses from the date of prepayment until tbe redemption date for the Outstanding Bonds to be redeemed with the prepayment. 9. Add the amounts computed pursuant to paragraphs 5 and 7 and subtract the amount computed pursuant to paragraph 8 (tbe "Defeasance Amounf'). 10. Verify the administrative fees and expenses of CFD No. 2001-1, Improvement Area A, including the costs of computation of tbe prepayment, the costs to invest the prepayment proceeds, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the "Administrative Fees and Expenses"). 11. The reserve fund credit (the "Reserve Fund Credif') shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated witb the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defllled in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment ITom the balance in the reserve fund on tbe prepayment date, but in no event shall such amount be less than zero. 12. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of tbe fIrst interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to paragraph 2 by tbe expected balance in tbe capitalized interest fund after such fIrst interest and/or principal payment (the "Capitalized Interest Credit'). 13. The Maximum Annual Special Tax prepayment is equal to tbe sum of the amounts computed pursuant to paragraphs 3, 4, 9, and 10, less the amounts computed pursuant to paragraphs 11 and 12 (the "Prepayment Amounf'). 14. From the Prepayment Amount, the amounts computed pursuant to paragraphs 3,4,9, 11, and 12 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Outstanding Bonds or make debt service payments. The amount computed pursuant to paragraph 10 shall be retained by CFD No. 2001- 1, Improvement Area A. 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 tbereof will be retained in tbe appropriate fund established under the Indenture to be used with tbe next prepayment of bonds or to make debt service payments. As a result of the payment of the current Fiscal Year's Special Tax levy as determined under paragraph 7 above, the CFD Administrator shall remove the current Fiscal Year's Special Tax levy for such Assessor's Parcel ITom the County tax rolls. With respect to any Assessor's Parcel that is prepaid, tbe Board 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 tbe Special Tax shall cease. Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Annual Special Taxes that may be levied on Taxable Property within CFD No. 2001-1, Improvement Area A both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds. Tenders of Bonds in prepayment of Maximum Annual Special Taxes may be accepted upon the terms and conditions established by the Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the Council. 2. Prepayment in Part The Maximum Annual Special Tax on an Assessor's Parcel of Developed Property or an Assessor's Parcel of Undeveloped Property for which a building permit has been issued may be partially prepaid. The amount of the prepayment shall be calculated as in Section H.l; except that a partial prepayment shall be calculated according to the following formula: PP = (PE X F) + A These terms have the following meaning: PP = the partial prepayment PE = the Prepayment Amount calculated according to Section H.I, minus Administrative Expenses and Fees pursuant to Step 10. F = the percent by which tbe owner of the Assessor's Parcel(s) is partially prepaying tbe Maximum Annual Special Tax. A= the Administrative Expenses and Fees pursuant to Step 10. The owner of an Assessor's Parcel who desires to partially prepay the Maximum Annual Special Tax shall notify the CFD Administrator of (i) such owner's intent to partially prepay the Maximum Annual Special Tax, (ii) tbe percentage by which the Maximum Annual Special Tax shall be prepaid, and (iii) tbe company or agency that will be acting as the escrow agent, if applicable. The CFD Administrator shall provide tbe owner with a statement of the amount required for the partial prepayment of the Maximum Annual Special Tax for an Assessor's Parcel witbin 30 days of the request and may charge a reasonable fee for providing this service. With respect to any Assessor's Parcel tbat is partially prepaid, the City shall (i) distribute the funds remitted to it according to Paragraph 14 of Section H.l, and (ii) indicate in the records ofCFD No. 2001-1, Improvement Area A that there has been a partial prepayment of the Maximum Annual Special Tax and tbat a portion of the Maximum Annual Special Tax equal to the outstanding percentage (1.00 - F) of tbe remaining Maximum Annual Special Tax shall continue to be authorized to be levied on such Assessor's Parcel pursuant to Section D. I. TERM OF MAXIMUM ANNUAL SPECIAL TAX The Maximum Annual Special Tax shall be levied commencing in Fiscal Year 2002-03 to the extent necessary to fully satisfy the Special Tax Requirement for a period no longer than 2037-38.