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HomeMy WebLinkAboutReso 2005-285 RESOLUTION NO. 2005-285 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA FORMING AND ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 12-1 (MCMILLIN- OTA Y RANCH-VILLAGE SEVEN), AND AUTHORIZING SUBMITTAL OF THE LEVY OF SPECIAL TAXES WITHIN SUCH COMMUNITY FACILITIES DISTRICT TO THE QUALIFIED ELECTORS THEREOF WHEREAS, the City Council of the City of Chu1a Vista (City Council), has previously declared its intention to form a community facilities district and ordered the preparation of a Community Facilities District Report relating to the initiation of proceedings to create such community facilities district 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 California (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 (Ordinance) (the Act and the Ordinance may be referred to collectively as the "Community Facilities District Law"). This community facilities district shall hereinafter be referred to as Community Facilities District No. 12-1 (McMillin-Otay Ranch-Village Seven) (District); and WHEREAS, notice of a public hearing relating to the establishment of the District, the extent of the District, the financing of certain types of public facilities and all other related matters has been given, and a Community Facilities District Report, as ordered by this City Council, has been presented to this City Council and has been made a part of the record of the hearing to establish such District; and WHEREAS, all communications relating to the establishment of the District, the financing of certain types of public facilities and the rate and method of apportiomnent of special tax proposed to be levied within the District have been presented, and it has further been determined that a majority protest as defined by law has not been received against these proceedings or the levy of the special tax; and WHEREAS, inasmuch as there have been less than twelve registered voters residing within the territory of the District for at least the preceding ninety days, the authorization to levy special taxes within the District shall be submitted to the landowners of the District, such landowners being the qualified electors as authorized by law. NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: SECTION 1. RECITALS. The above recitals are all true and correct. Resolution No. 2005-285 Page 2 SECTION 2. DETERMINATIONS. It is hereby determined by this City Council that: A. All prior proceedings pertaining to the formation of the District were valid and taken in conformity with the requirements of the law, and specifically the provisions of the Community Facilities District Law, and that this finding and determination is made pursuant to the provisions of Government Code Section 53325.1. B. The written protests received, if any, do not represent a majorIty protest as defined by the applicable provisions ofthe Community Facilities District Law and as applied to the District and, therefore, the special tax proposed to be levied within the District has not been precluded by majority protest pursuant to Section 53324 of the Government Code of the State of California. C. The District as proposed conforms with the City of Chula Vista Statement of Goals and Policies Regarding the Establishment of Community Facilities Districts (Goals and Policies), as amended. D. Less than twelve registered voters have resided within the territory of the District for each of the ninety days preceding the close of the public hearing, therefore, pursuant to the Act the qualified electors of the District shall be the landowners of the District as such term is defined in Government Code Section 53317(f) and each such 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 District. E. 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 District and the requirements for impartial analysis and ballot arguments have been waived with the unanimous consent of the qualified electors ofthe District. F. 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 forming and establishing the District. SECTION 3. COMMUNITY FACILITIES DISTRICT REPORT. The Community Facilities District Report for the District (Report), as now submitted by McGill Martin Self, Inc., Special Tax Consultant, shall stand as the report as required pursuant to Government Code Section 53321.5 for all future proceedings and all terms and contents are approved as set forth therein. SECTION 4. NAME OF DISTRICT. The City Council does hereby establish and declare the formation of the District known and designated as "Community Facilities District No. 12-1 (McMillin-Otay Ranch-Village Seven)." SECTION 5. BOUNDARIES OF DISTRICT. The boundaries of the District are generally described as follows: Resolution No. 2005-285 Page 3 All property within the boundaries of Community Facilities District No. 12-1 (McMillin-Otay Ranch-Village Seven), as shown on a boundary map as previously approved by this legislative body, such map designated by the name of this District, a copy of which is on file in the Office of the City Clerk. The boundary map of the proposed District has been filed pursuant to Sections 3111 and 3113 of the Streets and Highways Code of the State of California in the Office of the County Recorder of the County of San Diego, at Page 64 of Book 39 of the Book of Maps of Assessment and Community Facilities Districts for such County. SECTION 6. DESCRIPTION OF TYPES OF FACILITIES AUTHORIZED TO BE FINANCED. A general description of the types of public facilities which this legislative body is authorized by law to construct, own or operation, which are the types of facilities proposed to be financed under these proceedings, are generally described in Exhibit A attached hereto and incorporated herein by this reference. The types of facilities as above-described are facilities which the City Council is authorized by law to contribute revenue to or to construct, own or operate. It is hereby further determined that the proposed types of facilities are necessary to meet increased demands placed upon the City as a result of development occurring within the District, and the costs and expenses charged to this District represent the fair share costs ofthe facilities attributable to this District. For a full and complete description of such types of facilities, reference is made to the Report, a copy of which is on file in the Office of the City Clerk. In addition to financing the above described types of facilities, the financing of those incidental expenses described in the Report are also approved and authorized. SECTION 7. SPECIAL TAX. Except where funds are otherwise available a special tax, secured by recordation of a continuing lien against all non-exempt real property in the proposed District, is hereby authorized, subject to voter approval, to be levied within the boundaries of the District. For particulars as to the rate and method of apportionment of the special tax proposed to be levied within the District, 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 District 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 to assist in financing such types offacilities, to replenish any reserve fund established for such bonds, and to pay the costs of administering the bonds and the District. 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. Resolution No. 2005-285 Page 4 Under no circumstances will the special tax to be levied against any parcel within the District used for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within the District 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 District, a continuing lien to secure each levy of the special tax shall attach to all non-exempt real property in the District 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 8. 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 described in Section 7 above: A. The special tax shall be levied for the specific purposes set forth in Section 7. above. B. The proceeds of the levy of such special tax shall be applied only to the specific applicable purposes set forth in Section 7. above. C. The District shall establish a separate account into which the proceeds of such special tax shall be deposited. 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 9. PREPARATION OF ANNUAL TAX ROLL. The name, address and telephone number of the office, department or bureau which will be responsible for preparing annually a current roll of special tax levy obligations by Assessor's parcel number and which shall be responsible for estimating future special tax levies pursuant to Section 53340.1 of the Government Code of the State of California, are as follows: Engineering Department City ofChula Vista 276 Fourth Avenue Chula Vista, CA 92010 (619) 691-5021 -! Resolution No. 2005-285 Page 5 SECTION 10. SUBSTITUTION FACILITIES. The description of the types of public facilities, as set forth in Exhibit A hereto, is general in its nature. The final nature and location of such facilities will be determined upon the preparation of final plans and specifications therefor. Such final plans may show substitutes in lieu of, or modification to, the above described types of facilities and any such substitution shall not be a change or modification in the proceedings as long as the facilities provide a service substantially similar to that as set forth in this Resolution. SECTION 11. ELECTION. This City Council herewith submits the levy ofthe special tax within the District to the qualified electors thereof, such electors being the landowners in the District, with each landowner having one vote for each acre or portion thereof of land which he or she owns within the District. Prepared by Approved as to form by ~~d~;;? / SOhaib AI-Agha City Engineer ~:S\\c.c( 'ci\ 1\\f~Ql ~ ~ Ann Moore City Attorney Resolution No. 2005-285 Page 6 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 23rd day of August, 2005, by the following vote: AYES: Councilmembers: McCann, Rindone, and Padilla NAYS: Councilmembers: None ABSENT: Councilmembers: ~P- Stephen C. adilla, Mayor ATTEST: -=---=u.LO""'U~~ f' Susan Bigelow, MMC, 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. 2005-285 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 23rd day of August, 2005. Executed this 23rd day of August, 2005. ,-- .........' ~~ ~~an Big~~~~C,1 City CI'Jt Resolution No. 2005-285 Page 7 EXHIBIT A DESCRIPTION OF TYPES OF FACILITIES The public facilities authorized to be financed by the levy of special taxes within the District shall include backbone streets and related improvements, including without limitation, grading, landscaping, sewers, drainage improvements and pedestrian bridges, and public utilities and other public improvements authorized to be financed from the proceeds of the Public Facilities Development Impact Fee as may be authorized by the goals and policies of the City Council pertaining to the use of the Community Facilities District Law. Resolution No. 2005-285 Page 8 EXHIBIT B RATE AND METHOD OF APPORTIONMENT FOR CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 12-1 (McMillin Otay Ranch Village Seven) A'Special Tax as hereinafter defined shall be levied on each Assessor's Parcel of Taxable Property within the City of Chula Vista Co=uD.ity Facilities District No: 12-1 (CFD No. 12-1) and collected each Fiscal Year co=encing in Fiscal Year 2006-2007 in an amount determined by the City Council through the application of the appropriate Special Tax for "Developed Property", "Undeveloped Property" and "Contingent Taxable Property" as described below. All of the Taxable Property CFD No. 12-1, 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 meaning: "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable Final Subdivision Map, parcel map, condominium plan, record of survey, or other recorded document creating or describing the parcel. If the preceding maps for a land area are not available, the Acreage of such land area shall be determined by the City Engineer. "Act" means the Mello-Roos Co=unity Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State ofCalifomia. "Administrative Expense Requirement" means an annual amount equal to $75,000, or such lesser amount as may be designated by written instruction from an Authorized Representative to the Fiscal Agent, to be allocated as the first priority of Special Taxes received each Fiscal Year for the payment of Administrative Expenses. "Administrative Expenses" means the actual or reasonably estimated costs directly related to the administration of CFD No. 12-1 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. 12-1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 12-1 or any designee thereof of providing continuing disclosure; the costs associated with preparing Special Tax disclosure statements and responding to publicsinquiries regarding the Special Taxes; the costs of the City, CFD No. 12-1 or any designee thereof related to any appeal of the levy or application of the Special Tax; and the costs associated with the release of funds from an escrow account, if any. Administrative City ofChula Vista Community Facilities District No. 12-1 McNIillin Otay Ranch Villa}<e Seven June 15, 2005 Pa"e 1 -' Resolution No. 2005-285 Page 9 Expenses shall also include amounts estimated or advanced by the City or CFD No. 12-1 for any other administrative purposes, including, but not limited to, attorney's fees and other costs related to co=encing and pursuing to completion any foreclosure of delinquent Special Taxes. "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned Assessor's Parcel number. . "Assessor's Parcel Map" means an official map of the County Assessor of the County designating parcels by an 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.1.a. "Available Funds" means the balance in the reserve fund established pursuant to the terms of any Indenture in excess of the reserve requirement as defined in such Indenture, delinquent Special Tax payments not required to fund the Special Tax Requirement for any preceding Fiscal Year, Special Tax prepayments collected to pay interest on Bonds, and other sources of funds available as a credit to the Special Tax Requirement as specified in such bond indenture. "Backup Special Tax" means the Backup Special Tax amount set forth in Section C.l.b. "Bonds" means any bonds or other debt (as defined in the Act), whether in one or more series, issued by CFD No. 12-1 under the Act. "Bond Year" means a one-year period beginning on September 2nd in each year and ending on September 1 at in the following year, unless defined differently in the applicable Indenture. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD No. 12-1 means City ofChula Vista, Co=unity Facilities District No. 12-1. "City" means the City of Chula Vista. "Contingent Taxable Property" means all Assessor's Parcels of Public Property, Property Owner Association Property, Open Space or other property that would otherwise be classified as Exempt Property pursuant to the provisions of Section E, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property below the required minimum acreage as set forth in Section E.l for Zone A or Zone B as applicable. City ofChula Vista Community Facilities District No. 12-1 1,/"",),/".11;_ rll-..... 0..._...1. T7;11........ C"........_ June 15, 2005 n___ ... Resolution No. 2005-285 Page 10 "Council" means the City Council of the City, acting as the legislative body of CFD No. 12-1. "County" means the County of San Diego. "Developed Property" means a:ll Assessor's Parcels of Taxable Property for which a building permit has been issued prior to March 1 st preceding the Fiscal Year in which the Special Tax is being levied. "Exempt Property" means a:ll Assessors' Parcels that are exempt from the Special Tax pursuant to Section E.!. "Final Subdivision Map" means a subdivision of property, created by recordation of a final subdivision 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 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, "Indenture" means the indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same, "Land Use Gass" means any of the classes listed in Table 1 of Section C.l.a. "Lot(s)" means an individual legal lot created by a Final Subdivision Map for which a building permit for residential construction has been or could be issued. Notwithstanding the foregoing, in the case of an individual legal lot created by such a Final Subdivision Map upon which condominium units are entitled to be developed but for which a condominium plan has not been recorded, the number of Lots a:llocable to such legal lot for purposes of calculating the Backup Special Tax applicable to such Final Subdivision Map shall equal the number of condominium units which are permitted to be constructed on such legal lot as shown on such Final Subdivision Map. "Maximum Annual Speci:lI Tax" means the maximum annual Special Tax, determined in accordance with the provisions of Section C, which may be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property. "Non-Residential Property" means a:ll Assessor's Parcels of Developed Property, for which a building permit(s) has been issued to a:llow the construction of one or more buildings or structures for a non-residential use. "Occupied Residential Property" means a:ll Assessors' Parcels of Residential Property for which title is owned by an end user (homeowner). City of Chula Vista Community Facilities District No. 12-1 McMillin Olav Ranch Villa"e Seven June 15, 2005 Pnup' =i J Resolution No. 2005-285 Page 11 "Open Space" means property within the boundaries of CFD No. 12-1 which (a) has been designated with specific boundaries and acreage on a Final Subdivision Map as open space (b) is classified by the County Assessor as open space ( c) has been irrevocably offered for dedication as open space to the federal government, the State of California, the County, the City, any other public agency or (d) is encumbered by an easement or other restriction required by the City limiting the use of such property to open space. "Outstanding Bonds" mean all Bonds, which remain outstanding as defined in the Indenture. "Property Owner Association Property" means any property within the boundaries of CFD No. 12-1 which is (a) owned by a property owner association or (b) designated with specific boundaries and acreage on a Final Subdivision Map as property owner association property. As used in this definition, a property owner association includes any master or sub-association. "Proportionately" means for Developed Property that the ratio of the Special Tax levy to the Assigned Special Tax or the Backup Special Tax is equal for all Assessors' Parcels of Developed Property within CFD No. 12-1. For Undeveloped Property or Contingent Taxable 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 and equal for all Assessor's Parcels of Contingent Taxable Property within CFD No. 12-1. "Public Property" means any property within the boundaries ofCFD No. 12-1 that which (a) is owned by a public agency, (b) has been irrevocably offered for dedication to a public agency or ( c) is designated with specific boundaries and acreage on a Final Subdivision Map as property which will be owned by a public agency. For purposes of this definition, a public agency includes the federal gove=ent, 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 the CFD Administrator by reference to appropriate records kept by the City's Building Department. Residential Floor Area for a residential structure will be based on the building permit(s) issued for such structure prior to it being classified as Occupied Residential Property, and shall not change as a result of additions or modifications made to such structure 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. City ofChula Vista Community Facilities District No. 12-1 l;~l.t:;";_ 1"1.._. D___r. T?:71___ ("1_.__ June 15, 2005 Resolution No. 2005-285 Page 12 "Special Tax Requirement" means that amount of Special Tax revenue required in any Fiscal Year for CFD No. 12-1 to: (i) Pay Administrative Expenses in an amount equal to Administrative Expense Requirement or such other amount as may be designated by the City (ii) pay annual debt service on all Outstanding Bonds (as defined in Section A) due in the Bond Year beginning in such Fiscal Year; (iii) pay other periodic costs on Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on Outstanding Bonds; (iv) pay any amounts required to establish or replenish any reserve nmds for all Outstanding Bonds in accordance with the Indenture; and (v) pay directly for acquisition and/or construction of public improvements which are authorized to be financed by CFD No. 12-1 provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on the Undeveloped Property for CFD No. 12-1; less (vi) a credit for Available Funds. "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No. 12-1 that 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 bond indenture. "Undeveloped Property" means, for each Fiscal year, all Taxable Property not classified as Developed Property or Contingent Taxable Property. "Zone A" means the specific geographic area designated as such and as depicted in Exhibit A attached hereto. "Zone B" means the specific geographic area designated as such and as depicted in Exhibit A attached hereto. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, all Assessor's Parcels of Taxable Property within CFD No. 12-1 shall be (a) categorized as being located in either Tax Zone A or Zone B, (b) classified as Developed Property, Undeveloped Property or Contingent Taxable Property and (c) shall be subject to the levy of annual Special Taxes determined pursuant to Sections C and D below. Furthermore, all Developed Property shall then be classified as Residential or Non- Residential Property. C. MAXIMUM ANNUAL SPECIAL TAX RATE 1. Developed Property The Maximum Annual Special Tax for each Assessor's Parcel of Residential Property or.Non-Residential Property shall be the greater of (1) the Assigned Special Tax described in Table 1 or (2) the Backup Special Tax computed pursuant to b. on next page. City of Chula Vista Community Facilities District No. 12-1 'Mr.Milli" nfnv Rnnrh VilinC7~ ,r'.;P"VP" June 15, 2005 Pnn.o\ j Resolution No. 2005-285 Page 13 a. Assi!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 within Zone A and Zone B Land Use Class Descri tion Assi ed S ecial Tax $890 per Unit Plus $0.79 per square foot of Residential Floor Area $6,000 per Acre 1 Residential Property 2 Non-Residential Pro e b. Backup Special Tax When a Final Subdivision Map or a condominium plan is recorded within Zone A or Zone B, the Backup Special Tax for Assessor's Parcels of Developed Property classified as Residential Property or Non-Residential Property shall be determined as follows: For each Assessor's Parcel of Residential Property or for each Assessor's Parcel of Undeveloped Property to be classified as Residential Property upon its development within the Final Subdivision Map area, the Backup Special Tax shall be the rate per Lot calculated according to the following formula: Zone A $24,383 x A B= ------------------------ L Zone B $41,621 xA B= ------------- L City ofChula Vista Community Facilities District No. 12-1 ~f"l'{:l1:_ 1")"_.0__10 T".;11___ C"_.__ June 15, 2005 Resolution No. 2005-285 Page 14 The terms have the following meanings: B = Backup Special Tax per Lot in each Fiscal Year. A = Acreage classified or to be classified as Residential Property in such Final Subdivision Map. L = For a Final Subdivision Map, the number of Lots which are classified or to be classified as Residential Property. For each Assessor's Parcel of Developed Property classified as Non-Residential Property or for each Assessor's Parcel of Undeveloped Property to be classified as Non-Residential Property within the Final Subdivision Map area, the Backup Special Tax shall be determined by multiplying $24,383 for Zone A and $41,621 for Zone B by the total Acreage of any such Assessor's Parcel. Notwithstanding the foregoing, if Assessor's Parcels of Residential Property, Non- Residential Property or Undeveloped Property for which the Backup Special Tax has been determined are subsequently changed or modified by recordation of a new or amended Final Subdivision Map, then the Backup Special Tax applicable to such Assessor's Parcels shall be recalculated to equal the total amount of Backup Special Tax that would have been generated if such change did not take place. 2. Undeveloped Property and Contingent Taxable Property The Maximum Annual Special Tax for each Assessor's Parcel of Undeveloped Property and Contingent Taxable Property shall be $24,383 per Acre for Zone A and $41,621 per Acre for Zone B. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Co=encing with Fiscal Year 2006-07 and for each following Fiscal Year, the Council shall determine the Special Tax Requirement and shall 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 Proportionately on each Assessor's Parcel of Developed Property within Zone A and Zone B 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 sha1l be levied Proportionately on all Undeveloped Property within Zone A and Zone B, at a rate up to 100% of the Maximum Annual Special Tax for Undeveloped Property. In determining the Acreage of an Assessor's Parcel of Undeveloped Property for purposes of determining the annual Special Tax to be levied on such Assessor's Parcels of Undeveloped Property, the CFD Administrator shall not include any Acreage shown on any applicable tentative subdivision map or other land use entitlements approved by the City that designates such Acreage for a City ofChula Vista Community Facilities District No. 12-1 M,..UiTli" nfrnJ Thmrh Vil1"ap .~PI.}"" June 15, 2005 P...,.._ 7 , -~ Reso]ution No. 2005-285 Page ]5 use that would be classified as Open Space, Property Owner Association Property or Public Property. Third: If additional monies are needed to satisfY the Special Tax Requirement after the first two steps have been completed, the Special Tax to be levied on each Assessor's Parcel of Developed Property whose Maximum Annual Special Tax is derived by the application of the Backup Special Tax then the Annual Special Tax shall be increased at the same percentage 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 all Contingent Taxable Property at a rate up to 100% of the Maximum Annual Special Tax for Undeveloped Property. Notwithstanding the above, under no circumstances will the Special Tax levied against any 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. E. EXEMPTIONS 1. The CFD Administrator shall classify the following as Exempt Property: (i) Public Property, (ii) Property Owner Association Property, (ill) Open Space and (iv) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; provided, however, that no such classification shall reduce the sum of all Taxable Property to less than 32.98 Acres for Zone A and 22.00 Acres for Zone B. Assessor's Parcels which cannot be classified as Ex.empt Property because such classification would reduce the Acreage of all Taxable Property to less than 32.98 Acres for Zone A and 22.00 Acres for Zone B will be classified as Contingent Taxable Property and shall be taxed pursuant to the fourth step of Section D. 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 property which would be classified as Public Property upon its transfer or dedication to a public agency but which is classified as Contingent Taxable Property pursuant to E.1 above shall be prepaid in full by the seller pursuant to Section H.l, prior to the transfer/dedication of such property to such public agency. 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 Contingent Taxable 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 E.l. above City of Chula Vista Community Facilities District No. 12-1 AIf'"JII';l1;_ r'j",_. D__L Tr.l'_...._ C"_.__ June 15, 2005 - - ^ Resolution No. 2005-285 Page 16 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 COMMITTEE AJJ.y landowner or resident who feels that the amount of the Special Tax levied on their Assessor's Parcel is in error shall first consult with the CFD Administrator regarding such error. If following .such consultation, the CFD Administrator determines that an error has occurred; the CFD Administrator may amend the amount of the Special Tax levied on such Assessor's Parcel. If following such consultation and action (if any by the CFD Administrator), the landowner or resident believes such error still exists, such person may file a written notice with the City Clerk of the City appealing the amount of the Special Tax levied on such Assessor's Parcel. Upon the receipt of any such notice, the City Clerk shall forward a copy of such notice to the City Manager who shall establish as part of the proceedings and administration of CFD No. 12-1 and a special three-member Review/Appeal Committee. The Review/Appeal Committee may establish such procedures, as it deems necessary to undertake the review of any such appeal. The Review/Appeal Committee shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals, as herein specified. The decision of the Review/Appeal Committee shall be final and binding as to all persons. 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. 12-1, 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 of Taxable Property that are delinquent in the payment of Special Taxes. Tenders of Bonds may be accepted for payment of Special Taxes upon the terms and conditions established by the Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the Council. H. PREPAYMENT OF SPECIAL TAX The following definition applies to this Section H: "CFD Public Facilities" means those public facilities authorized to be financed by CFD No. 12-1. "CFD Public Facilities Costs" means either $ 17.1 million, or such lower number as shall be determined either by (a) the CFD Administrator as sufficient to finance the CFD Public City ofChula Vista Community Facilities District No. 12-1 McMillin ntav Ranch Villape Seven June 15, 2005 Pno:p, 9 Resolution No. 2005-285 Page 17 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, (ii) from 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 Bonds which will remain outstanding . after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Maximum Annual Special Taxes. 1. Prepayment in Full The Maximum Annual Special Tax obligation may only be prepaid and permanently satisfied for an Assessor's Parcel of Developed Property, Undeveloped Property for which a building permit has been issued, or Contingent Taxable Property. The Maximum Annual Special Tax obligation applicable to such Assessor's Parcel may be fully prepaid and the obligation of the Assessor's Parcel to pay the Special Tax permanently satisfied as described herein; provided, however that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Maximum Annual Special Tax obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice, the 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 su=arized below (capitalized terms as defined below): Bond Redemption Amount plus Redemption Premium plus Future Facilities Amount plus Defeasance Amount plus Prepayment Fees and Expenses less Reserve Fund Credit less Capitalized Interest Credit Total: equals Prepayment Amount City ofChula Vista Community Facilities District No. 12-1 "",,.A,,filU.. n'f,", R".,..,.J" TJ'il'"nDC'nI.nM June 15, 2005 n___ In Resolution No. 2005-285 Page 18 As of the proposed date of prepayment, the Prepayment Amount (defined below) shall be calculated as follows: Step No.: 1. For Developed Property, compute the Maximum Annual Special Tax for the Assessor's Parcel to be prepaid. For Assessor's Parcels of Undeveloped Property for which a building permit has been issued to be prepaid, compute the Maximum Annual Special Tax for that Assessor's Parcel as though it was already designated as Developed Property, based upon the building permit issued for that Assessor's Parcel. For Assessor's Parcels of Contingent Taxable 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 step 1 by the sum of the total expected Maximum Annual Special Tax revenues which may be levied within CFD No. 12-1 excluding any Assessors Parcels for which the Maximum Annual Special Tax obligation has been previously prepaid. 3. Multiply the quotient computed pursuant to step 2 by the principal amount of the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the "Bond Redemption Amount'). 4. Multiply the Bond Redemption Amount computed pursuant to step 3 by the applicable redemption premium on the next possible Bond call date, if any, on the Outstanding Bonds to be redeemed (the "Redemption Premium"). 5. If all the Bonds authorized to be issued for CFD No. 12-1 have not been issued, then compute the Future Facilities Costs. 6. Multiply the quotient computed pursuant to step 2 by the amount determined pursuant to step 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 ofCFD No. 12-1, 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 City ofChula Vista Community Facilities District No. 12-1 McMillin Otav Ranch Villa"" Sev"n June 15, 2005 Pna.l1 , -! Resolution No. 2005-285 Page 19 recording any notices to evidence the prepayment and the redemption (the "Prepayment Fees and Expenses"). II. 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 step 10, from 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 steps 7 and 9 and subtract the amount computed pursuant to step II (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 sha1l such amount be less than zero. 14. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest payment following the current Fiscal Year, a capitalized interest credit sha1l be calculated by multiplying the quotient computed pursuant to step 2 by the expected balance in the capitalized interest fund after such first interest payment (the "Capitalized Interest Credif'). 15. The Maximum Annual Special Tax prepayment is equal to the sum of the amounts computed pursuant to steps 3, 4, 6, 10, and 12, less the amounts computed pursuant to steps 13 and 14 (the '.'Prepayment Amount'). 16. From the Prepayment Amount, the amounts computed pursuant to steps 3,4, 12, 13, and 14 sha1l be deposited into the appropriate fund as established under the Indenture and be used to retire Outstanding Bonds or make debt service payments. The amount computed pursuant to step sha1l be retained by CFD No. 12-1. The amount computed pursuant to step 6 shall be deposited in the Construction Fund. The Prepayment Amount may be sufficient to redeem other than a, $5,000 increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of bonds or to make debt service payments. As a result of the payment of the current Fiscal Year's Special Tax levy as determined under step 9 above, the CFD Administrator shall remove the current Fiscal Year's Special Tax levy for such Assessor's Parcel from the County tax rolls. With respect to any Assessor's Parcel that is prepaid, the Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Special Taxes and the release of the City of Chu/a Vista Community Facilities District No. 12-1 A,F...A.l'iTl..., 11......, l;)..._...1. Tr.l1...~ t".....__ June 15, 2005 T'l ~_ _ '" Resolution No. 2005-285 Page 20 Special Tax lien on such Assessor's Parce~ 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. 12-1 prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds. 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 1; except that a partial prepayment shall be calculated according to the following formula: PP = (PE-AxF) + A These terms have the following meaning: PP = the partial prepayment PE = the Prepayment Amount calculated according to Section H.l, minus Prepayment Fees and Expenses determined 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 determined pursuant to Step 10. The owner of an Assessor's Parcel who desires to partially prepay the Maximum Annual Special Tax shall notify the 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 (ill) 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 Step 16 of Section H.1, and (ii) indicate in the records ofCFD No. 12-1, 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 rem~;ning Maximum Annual Special Tax shall continue to be authorized to be levied on such Assessor's Parcel pursuant to Section D. City ofChula Vista Community Facilities District No. 12-1 McMillin Otav Ranch Villa"e Seven June 15, 2005 Pnap 1 ~ I J o Resolution No. 2005-285 Page 21 L TERM OF MAXIMUM ANNUAL SPECIAL TAX The Maximum Annual Special Tax shall be levied co=encing in Fiscal Year 2006-2007 to the extent necessary to fully satisfy the Special Tax Requirement and shall be levied for a period no longer than the 2046-2047 Fiscal Year. City ofChula Vista Community Facilities District No. 12-1 McMi l/in Otav Ranch Villa,," Sev"" June 15, 2005 P....~n 7A