HomeMy WebLinkAboutOrd 2005-2994
ORDINANCE NO. 2994
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING ORDINANCE NO. 2850 AND
AUTHORIZING THE LEVY OF A SPECIAL TAX IN
IMPROVEMENT AREA B OF COMMUNITY FACILITIES
DISTRICT NO. 2001-1 (SAN MIGUEL RANCH) PURSUANT
TO A REVISED RATE AND METHOD OF APPORTIONMENT
OF SPECIAL TAX
WHEREAS, the City Council of the City ofChula Vista, California (the "City Council"),
has initiated proceedings, held a public hearing, conducted an election and received a favorable
vote from the qualified electors authorizing the levy of separate special taxes in separate
improvement areas of a community facilities district, all as authorized pursuant to the terms and
provisions of the "Mello-Roos Community Facilities Act of 1982", being Chapter 2.5, Part 1,
Division 2, Title 5 of the Govemment Code of the State of Cali fomi a (the "Act") and the City of
Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by
the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of
California (the "Ordinance") (the Act and the Ordinance may be referred to collectively as the
"Community Facilities District Law"). This Community Facilities District is designated as
Community Facilities District No. 2001-1 (San Miguel Ranch) (the "District") and the
improvement areas therein are designated as Improvement Area A and Improvement Area B
(individually, an "Improvement Area" and collectively, the "Improvement Areas"); and
WHEREAS, the City Council, acting as the legislative body of the District, previously
enacted Ordinance No. 2850 to authorize the levy of special taxes within Improvement Area A
and Improvement Area B pursuant to a separate rate and method of apportionment applicable to
each respective Improvement Area; and
WHEREAS, the City Council, has initiated proceedings, held a public hearing, conducted
an election and received a favorable vote from the qualified electors of Improvement Area B
authorizing the levy of special taxes therein pursuant to a revised rate and method of
apportionment thereof.
NOW, THEREFORE, the City Council of the City of Chula Vista, California, acting as
the legislative body of Community Facilities District No. 2001-1 (San Miguel Ranch), does
hereby ordain as follows:
SECTION 1. This City Council does, by the passage of this ordinance, authorize the levy of
special taxes on taxable properties located in Improvement Area B pursuant to the Revised Rate
and Method of Apportionment of Special Taxes as set forth in Exhibit "A" attached hereto and
incorporated herein by this reference (the "Revised Rate and Method").
SECTION 2. This City Council, acting as the legislative body of the District, is hereby further
authorized, by resolution, to annually determine the special tax to be levied within Improvement
Area B for the then current tax year or future tax years; provided, however, the special tax to be
levied in Improvement Area B shall not exceed the maximum special tax authorized to be levied
pursuant to the Revised Rate and Method.
SECTION 3. The special taxes herein authorized to be levied within Improvement Area B, to
the extent possible, shall be collected in the same manner as ad valorem property taxes and shall
Ordinance 2994
Page 2
be subject to the same penalties, procedure, sale and lien priority in any case of delinquency as
applicable for ad valorem taxes; provided, however, the District may utilize a direct billing
procedure for any special taxes that cannot be collected on the County tax roll or may, by
resolution, elect to collect the special taxes at a different time or in a different manner if
necessary to meet its financial obligations.
SECTION 4. The special taxes authorized to be levied in Improvement Area B shall be secured
by the lien imposed pursuant to Sections 3114.5 and 3115.5 of the Streets and Highways Code of
the State of California, which lien shall be a continuing lien and shall secure each levy of the
special tax. The lien of the special tax shall continue in force and effect until the special tax
obligation is prepaid, permanently satisfied and canceled in accordance with Section 53344 of
the Government Code of the State of California or until the special tax ceases to be levied by the
City Council in the manner provided in Section 53330.5 of said Government Code.
SECTION 5. This ordinance shall, upon becoming effective, amend and supercede any and all
provisions of Ordinance No. 2850 pertaining to the authorization to levy special taxes within
Improvement Area B of the District. All provisions of Ordinance No. 2850 pertaining to the
authorization to levy special taxes within Improvement Area A of the District shall remain in full
force and effect.
SECTION 6. This ordinance shall be effective thirty (30) days after its adoption. Within fifteen
(15) days after its adoption, the City Clerk shall cause this ordinance to be published in a
newspaper of general circulation in the City pursuant to the provisions of Government Code
Section 36933.
Presented by
Approved as to form by
. [fin
Services Director
(À~
Ann Moore
City Attorney
Ordinance 2994
Page 3
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 15th day of February, 2005, by the following vote:
AYES:
Councilmembers:
Castaneda, Davis, McCann, and Padilla
NAYS:
Councilmembers:
None
ABSENT:
Councilmembers:
Rindone
ATTEST:
~. L/{ I ~r ?~ ð. r>. --'
Susan Bigelow, MMC, City k
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Ordinance No. 2994 had its first reading at a regular meeting held on the 8th day of February,
2005 and its second reading and adoption at a regular meeting of said City Council held on the
15th day of February, 2005.
Executed this 15th day of February, 2005.
~ ~J A.~~
Susan Bigelow, MMC, City erk
EXHI BIT A
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 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 B") and collected each Fiscal Year commencing in Fiscal Year 2005-06, 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, unless exempted by law or by the provisions hereof, shall be
taxed for the purposes, to the extent and in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
" 'A' Map" shall 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 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means the following actual or reasonably estimated costs
directly related to the administration ofImprovement Area B of CFD N~. 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 of remitting the Special Taxes to the Trustee; the costs of the Trust~
(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 req1Úrements; 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 o[Chu.la VISta
Community Facilities District No. 2001-1, 1mprove"1':lZ.IfÍFFa B
Revised November 2(){)4
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.
Anmini <tr¡¡tive Expenses s1la.l.I also include amounts estimated or advanced by the City or
CFD No. 2001-1, Improvement Area B for any other administrative purposes of CFD 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 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 det=i.ned in accordance with Section C.l. a.
"Available Funds" means the balance in the reserve fund established pursuant to the terms
of the Indenture in excess of the reserve requirement as defined in such Indenture,
delinquent Special Tax payments, 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 AdminÌ.!ltrator" means an official of the City, or designee thereof; responsible for
determining the Special Tax Requirement and providing for the levy and collection of the
Special Taxes.
"CFD No. 2001-1" means City of ChulaVista, Community Facilities District No. 2001-1
(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 (a)
classified as community purpose facilities and meet the requirements of City ofChula VlSta
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 community
purpose facility. .:
City olChllla Vìsta
CommJUlity Facilities District No. 2001-1, Improveml!1ltArea B
San Miguel Ranch
Rl!Vised Navemher 2004
POl(e2
"Council" means the City Council of the City, acting as the legislative body ofCFD No.
2001-1.
"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.
"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 Map" means a subdivision of property created by recoróation of a fmal map, parcel
map, or lot line aójustment, approved by the City pursuant to the Subdivision Map Act
(California Government Code Section 66410 et seq.) or recordation ofa condominium plan
pursuant to California Civil Code 1352 that creates individual lots for which residential
building permits may be issued without further subdivision of such property.
"Fiscal Year" means the period starting July 1 and ending on the following June 30.
"ImprovementAreaB" means Improyement AreaB ofCFD No. 2001-1.
"Indentl!re" means the indenture, fiscal agent a.greement, 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 Oau" means any of the classes listed in Table 1 of Section C.
"Lot(s)" meaDS 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" meaIl!! 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-assoèi~tion.
City ofChula VIsta
Community FacilitiesDistrictNo.2001-i, Improvement4rja B
Rnn },,Æ,....,ID' »...........1.
RevisedNovembe1' 2004
n___ ...
"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
"ProportioIlJ!.tely" 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 1st of the preceding Fiscal Year, to a public agency or (c) is designated with
specific boundaries arid 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 Floor Area shall be
made by reference to appropriate records kept by the 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 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; (ii)
pay periodic costs on the Bonds, including but not limited to, credit enhancement and
rebate payments on the Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts
required to establish or replenish any reserve funds for all Outstanding Bonds in
accordance with the Indenture; (v) and pay directly for acquisition and/or construction of
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, ór paying agent under the Indenture.
City ofChula Jlìsta
Community Facilities District No. 2001-1, 1mprove","ntAreo B
San Mìr!Uel Ranch
Revised November 2004
Pngp!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
Prop erty 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 a.pplication of the Backup Special Tax.
a. Assil!D.ed Snecial 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 within Zone 1 and Zone 2
Land Use
Class
1
Descri non
Residential Property
Assi ned S etial Tax
$475.00 per unit plus $0.82 per
square foot of Residential Floor
Area
$4,000 per Acre of Commercial
Pro
2
Commercial Property
City ofChula Vista
Community Faciliti~s District No. 2001-1, Improvem.rmt Area B
gnn lvf;C7'W:~' 'R..--.... ..
Revised November 2004
D___ C
b. Backuo Special Tax
When 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 Prop erty.
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
Commercial Property within the Final Map area, the Backup Special Tax shall be
determined by multiplying $10,444 for Zone 1 and $4,444 for Zone 2 by the total
Acreage of the Commercial Property and Undeveloped Property to be classified as
Commercial Property within the Final Map area.
Notwithstanding the foregoing, if Assessor's Parcels of Residential Property,
Commercial Property or Undeveloped Property for which the total Backup Special
Tax has been determined are subsequently changed or modified by recordation of a
new or amended Final Map, then the total Backup Special Tax applicable to such
Assessor's Parcels shall be recalculated to equal the amount of total Backup Special
Tax that would have been generated if such change did not take place.
City ofChula Vista
Community Facilities District No. 2001-1, ImprovementA,rea B
San Mì$!Uel Ranch
Revised November 2004
Pa¡re6
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 sbAll levy the 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 Assessor's 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 the 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 ofCJrula Vista
Community Facilities District No. 2001-1, Improvement4,r.a B
(1__ ¡.r~_'A' n__'_
Revised November 2004
E. EXEMPTIONS
1. 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,
(ill) Assessor's Parcels defined as Community Purpose Facility 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 shall 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 first paragraph of Section E shall be
prepaid in full by the seller pursuant to Section Rl, 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. 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 paragraph 1 that would 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.
F. REVIEW/APPEAL COMMI'ITEE
The Council shall establish as part of the proceedings and administration ofCFD No. 2001-
1, Improvement Area B a special three-member Review/Appeal Conmrittee. Any
landowner or resident who feels that the amount of the Special Tax levied on their
Assessor's Parcel is in error may file a written notice with the Review/Appeal Committee
appealing the amount of the Special Tax levied on such Assessor's Parcel. The
Review! Appeal Committee may establish such procedures as it deems necessary to .
undertake the review of any such appeal. The Review/Appeal Committee shall interpret
this Rate and Method of Apportionment and make determinations relative to the annual
administration of the Special Tax and any landowner or resident appeals, as herein
specified. The decision of the Review/Appeal Committee shall be final and binding as to
all persons.
City ofChuJa Vista
Community Facilities District No. 2001-1. ImprovemrntA.rea B
San Mif!UeJ Ranch
Revised November 2004
Pr7O'p.R
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 Assessor's Parcels which are
delinquent in the payment of Special Taxes.
Tenders of Bonds may be accepted for payment of Special Taxes upon the terms and
conditions established by the Council pursuant to the Act. However, the use of Bond
tenders shall only be allowed on a case-by-case basis as specifically a.pproved 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 determined 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
Apporuonment.
"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) :fi:om the proceeds of all previously
issued Bonds, (ii) :fi:om interest earnings on the Construction Fund actually earned prior to
the date of prepayment and (ill) directly :fi:om Special Tax revenues and (b) the amount of
the proceeds of al:I previously issued Bonds then on deposit in the Construction Fund.
"Outstanding Bonds" means all previously issued Bonds which will remain outstanding
after the first interest and/or principal payment date following the current Fiscal Year,
excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of
Maximum Anm.1al Special Taxes.
,
City o/Chula VISta
CommunityFœilitiesDistrictNo. 2001-1, ImprovementArea B
<'_ AI;~._' D__L
Revised November 2004
7':1___ n
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 this figure.
The Prepayment Amount (defined below) shall be calculated as summarized below
(capitalized terms as defined below):
Bond Redemption Amount
plus
plus
plus
plus
less
less
Total: equals
Redemption Premium
Future Facilities Amount
Defeasance Amount
Prepayment Fees and Expenses
Reserve Fund Credit
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 design~ted 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 Spec::ial Tax obligation has been previously prepaid.
~
City a[Chula Vista
Community Facilities Dirtrict Na. 2001-1, ImpravementArea B
.san Miguel Ranch
Revised November 2004
Palle 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 following 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 ArlminÜrtrator reasonably expects to derive fiom the
reinvestment of the Prepayment Amount less the Prepayment Fees and Expenses as
determined pursuant to paragraph 10, fiom the date of prepayment until the
redemption date for the Outstanding 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 :fÌom the balance in the reserve fund on the prepayment date, but in no
event shall such amount be less thaiJ. zero.
City ofChula Vista
Community Fodlities District No. 2001-1, Improvemmt A~o B
C'_ 1.;:_._1 Tl__.L
Revised November 2004
n_.__ ,.
14. If any capitalized interest for the Outstanding Bonds will not have been expended at
the time of the first interest and! or principal payment following the current Fiscal
Year, a capitalized interest credit shall be calculated by multiplying the quotient
computed pursuant to paragraph 2 by the expected balance in the capitalized interest
fund after such first interest and/or principal payment (the "Capitalized Interest
Credit") .
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 amounts computed pursuant to paragraphs 3, 4,
12, 13, and 14 shall be deposited into the appropriate fund as established under the
Indenture and be used to retire Outstanding Bonds or make debt service payments.
The amount computed pursuant to paragraph 10 shall be retained by CFD 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 Annual 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 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 obligation 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 Îlmount of the prepayment shall be calculated as
City ofChula VIsta
Community Facilities District No. 2001-1, Improvement4rea B
Sfln Mio-u"l 'Rnnrh
Revised Navemher 2004
Pnr7ð 17
in Section H. I; except that a partial prepayment shall be calculated according to the
following formula:
PP = (FE X F) + A
These terms have the following meaning:
pp = the partial prepayment
PE = the Prepayment Amount calculated according to Section R.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, (ü) 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.1, 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 Maximum Annual
Special Tax shall continue to be authorized to be levied on such Assessor's Parcel pursuant
to Section D.
-.
L TERM OF MAXIMUM ANNUAL SPECIAL TAX
The Maximum Annual Special Tax shaH 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 Chula Vista
Community Facilities District No. 2001-1. ImprovemeJIt~"eQ B
C"__ ..r._.._'n___I'_
Revised November 2004
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