HomeMy WebLinkAboutOrdinance No. 12-O3ORDINANCE NO. 12-03
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF AZUSA, CALIFORNIA, LEVYING SPECIAL TAXES
WITHIN IMPROVEMENT AREA NO. 2 OF COMMUNITY
FACILITIES DISTRICT NO. 2005-1 (ROSEDALE) OF THE
CITY OF AZUSA
WHEREAS, the City Council (the "City Council') of the City of Azusa (the "City") has
previously formed the City of Azusa Community Facilities District No. 2005-1 (Rosedale) (the
"District") pursuant to the Mello -Roos Community Facilities Act of 1982, Chapter 2.5
(commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code
(the "Act') and designated Improvement Area No. 1 ("Improvement Area No. 1") and
Improvement Area No. 2 ("Improvement Area No. 2") within the District.
WHEREAS, the City Council of the City adopted and passed Ordinance 06-05 on June
19, 2006 (the "Original Ordinance") levying special taxes in (i) Improvement Area No. 1
pursuant to its rate and method of apportionment of special taxes attached to the resolution
forming the District (the "Original IA No. 1 RMA") and (ii) Improvement Area No. 2 pursuant
to its rate and method of apportionment of special taxes attached to the resolution forming the
District (the "Original IA No. 1 RMA").
WHEREAS, the City Council of the City has conducted proceedings within
Improvement Area No. 2 of the District pursuant to the Act to amend and restate the Original IA
No. 2 RMA, to implement, among other things, changes to the rates of special tax to be levied on
parcels of property in Improvement Area No. 2 of the District to pay debt service on the bonds of
the District that may be issued to finance the design, construction and acquisition of public
facilities authorized to be financed by the District, or to pay the costs of the provision,
construction and acquisition of such public facilities and/or to accumulate funds therefor.
WHEREAS, notice was published as required by the Act relative to the intention of the
City Council to amend and restate the Original IA No. 2 RMA for Improvement Area No. 2 and
to implement, among other things, changes in the rates of special tax to be levied on parcels of
taxable property in Improvement Area No. 2 to pay debt service on the bonds that may be issued
to finance the design, construction and acquisition of public facilities authorized to be financed
by the District, or to pay the costs of the provision, construction and acquisition of such public
facilities and/or to accumulate funds therefor, as provided in the Amended and Restated Rate and
Method of Apportionment of Special Tax for Improvement Area No. 2 (the "Amended and
Restated RMA").
WHEREAS, the City Council has held a noticed public hearing as required by the Act
relative to the determination to proceed with adoption of the Amended and Restated RMA.
WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to
consideration of the Amended and Restated RMA for Improvement Area No. 2 and the levy of
said special taxes therein were heard, substantial evidence was presented and considered by the
City Council, and a full and fair hearing was held.
4563 5.08001 \7048585.2
WHEREAS, subsequent to said hearing, the City Council adopted a resolution entitled
"Resolution of the City Council of the City of Azusa, California, Approving Certain Changes to
the Rate and Method of Apportionment and Calling a Special Election for Submitting to the
Voters of Improvement Area No. 2 of the City of Azusa Community Facilities District No. 2005-
1 (Rosedale) the Question of Whether the Rate and Method of Apportionment of Special Tax for
Said Improvement Area Should be Amended and Restated" (Resolution No. 11-C80), which
resolution approved certain changes to the Original IA No. 2 RMA and called an election within
Improvement Area No. 2 on the proposition regarding the amendment and restatement of the
Original IA No. 2 RMA for Improvement Area No. 2.
WHEREAS, an election was held within Improvement Area No. 2 of the District in
which the eligible landowner electors approved said proposition by more than the two-thirds vote
required by the Act.
WHEREAS. this Ordinance and the Amended and Restated RMA shall govern the levy
of special taxes with respect to Improvement Area No. 2, and the Original Ordinance shall no
longer control with respect to the levy of special taxes in Improvement Area No. 2.
WHEREAS, no changes were made to the IA No. 1 RMA and it remains in full force
and effect, and the Original Ordinance shall continue to be effective with respect to Improvement
Area No. 1.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF AZUSA, CALIFORNIA, AS FOLLOWS:
Section 1. By the passage of this Ordinance, the City Council hereby authorizes and
levies special taxes within Improvement Area No. 2 therein pursuant to California Government
Code Sections 53328 and 53340, at the respective rates and in accordance with the Amended and
Restated RMA for Improvement Area No. 2 as set forth in Exhibit `B" to Resolution No. 11-C80
adopted by the City Council on November 21, 2011. The special taxes for Improvement Area
No. 2 are hereby levied commencing in fiscal year 2012-2013 and, in each fiscal year thereafter,
pursuant to the Amended and Restated RMA for said Improvement Area, until payment in full of
any bonds issued by the District for Improvement Area No. 2 (the "Bonds"), payment of all costs
of the Facilities to be paid with such funds, and payment of all costs of administering the
District.
Section 2. The City Manager of the City is hereby authorized and directed each fiscal
year to determine the specific special tax rate and amount to be levied for the next ensuing fiscal
year for each parcel of real property within Improvement Area No. 2 of the District, in the
manner and as provided in the Amended and Restated RMA.
Section 3. Properties or entities of the State, federal or local governments shall be
exempt from any levy of the special taxes, to the extent set forth in the Amended and Restated
RMA for Improvement Area No. 2. In no event shall the special taxes be levied on any parcel
within Improvement Area No. 2 in excess of the maximum tax specified in the Amended and
Restated RMA.
Section 4. All of the collections of the special tax for the District and Improvement Area
No. 2 shall be used as provided for in the Act, the Amended and Restated RMA for Improvement
45635.08001\7048585.2 2
Area No. 2, and in Resolution of Formation No. 06-C39 adopted on June 5, 2006, including, but
not limited to, the payment of principal and interest on the Bonds of Improvement Area No. 2,
the replenishment of the reserve fund for any such Bonds, the payment of the costs of the
Facilities and Services, the payment of the costs of the City in administering the District and the
costs of collecting and administering the special taxes levied in Improvement Area No. 2.
Section 5. The special taxes shall be collected from time to time as necessary to meet the
financial obligations of the District on the secured real property tax roll in the same manner as
ordinary ad valoren? taxes are collected. The City Manager is hereby authorized and directed to
provide all necessary information to the auditor/tax collector of the County of Los Angeles and
to otherwise take all actions necessary in order to effect proper billing and collection of the
special tax, so that the special tax shall be levied and collected in sufficient amounts and at the
times necessary to satisfy the financial obligations of Improvement Area No. 2 of the District in
each fiscal year as provided in the Amended and Restated RMA.
Notwithstanding the foregoing, the City Manager may collect one or more installments of
the special taxes by means of direct billing by the City of the property owners within
Improvement Area No. 2, if, in the judgment of the City Manager, such means of collection will
reduce the administrative burden on the City, or is otherwise appropriate under the
circumstances. In such event, the special taxes shall become delinquent if not paid when due as
set forth in any such respective billing to the property owners.
The special taxes shall have the same lien priority, and be subject to the same penalties
and the same procedure and sale in cases of delinquency as provided for ad valorem taxes. In
addition, the provisions of Section 53356.1 of the Act shall apply to delinquent special tax
payments.
Section 6. If for any reason any portion of this Ordinance is found to be invalid, or if the
special tax is found inapplicable to any particular parcel within Improvement Area No. 2 of the
District, by a Court of competent jurisdiction, the balance of this ordinance and the application of
the special tax to the remaining parcels within Improvement Area No. 2 shall not be affected.
Section 7. The Mayor shall sign this Ordinance and the City Clerk shall cause the same
to be published within fifteen (15) days after its passage at least once in a newspaper of general
circulation published and circulated within the City's boundaries.
45635.08001\7048585.2 3
ADOPTED AND APPROVED this 4th day of June 2012.
MAYOR
ATTEST:
of the City of Azusa
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA
I, VERA MENDOZA, City Clerk of the City of Azusa, do hereby certify that the
foregoing Ordinance No. 12-03, was duly introduced and placed upon its first reading at a
regular meeting of the Azusa City Council on May 21, 2012 and that thereafter, said Ordinance
was duly adopted and passed at a regular meeting of the Azusa City Council on the 4th day of
June 2012 by the following vote, to wit:
AYES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
Clerk of the City of
APPROVED AS TO FORM:
City A tmey
45635.08001\7048585.2 4
EXHIBIT "A"
CITY OF AZUSA
COMMUNITY FACILITIES DISTRICT NO. 2005-1 (ROSEDALE)
IMPROVEMENT AREA NO. 2
SPECIAL TAX LEVY
FISCAL YEAR 2012-13
ASSESSOR'S PARCEL NUMBERS
8625-035-001
8625-035-002
8625-035-003
8625-035-004
8625-035-005
8625-035-006
8625-035-007
8625-035-008
8625-035-020
8625-035-023
8625-035-024
8625-035-027
8625-005-040
8625-005-041
8625-035-009
8625-035-010
8625-035-012
8625-035-013
8625-035-014
8625-035-019
8625-035-025
8625-035-026
8625-035-028
8625-035-029
8625-035-030
8625-035-031
8625-035-032
8625-035-033
8625-035-034
8625-035-035
8625-035-036
45635.08001\7048585.2 5
OWNER
Rosedale Land Partners II, LLC
Rosedale Land Partners II, LLC
Rosedale Land Partners II, LLC
Rosedale Land Partners II, LLC
Rosedale Land Partners II, LLC
Rosedale Land Partners II, LLC
Rosedale Land Partners II, LLC
Rosedale Land Partners II, LLC
Rosedale Land Partners II, LLC
Rosedale Land Partners II, LLC
Rosedale Land Partners II, LLC
Rosedale Land Partners II, LLC
Rosedale Land Partners II, LLC
Rosedale Land Partners 11, LLC
William Lyon Homes, Inc.
William Lyon Homes, Inc.
William Lyon Homes, Inc.
William Lyon Homes, Inc.
William Lyon Homes, Inc.
William Lyon Homes, Inc.
William Lyon Homes, Inc.
William Lyon Homes, Inc.
William Lyon Homes, Inc.
William Lyon Homes, Inc.
William Lyon Homes, Inc.
William Lyon Homes, Inc.
William Lyon Homes, Inc.
William Lyon Homes, Inc.
William Lyon Homes, Inc.
William Lyon Homes, Inc.
William Lyon Homes, Inc.
EXHIBIT "B"
AMENDED AND RESTATED RATE AND METHOD OF APPORTIONMENT
FOR IMPROVEMENT AREA NO. 2 OF CITY OF AZUSA
COMMUNITY FACILITIES DISTRICT NO. 2005-1 (ROSEDALE)
45635.08001\7048585.2
AMENDED AND RESTATED RATE AND METHOD OF
APPORTIONMENT FOR
IMPROVEMENT AREA NO.2 OF
CITY OF AZUSA
COMMUNITY FACILITIES DISTRICT NO. 2005-1
(ROSEDALE)
Special Taxes as hereinafter defined shall be levied on all Assessor's Parcels in Improvement Area
No. 2 ("IA No. 2") of the City of Azusa Community Facilities District No. 2005-1 (Rosedale) ("CFD
No. 2005-1 ") and collected each Fiscal Year commencing in Fiscal Year 2012-2013, in an amount
determined by the Council through the application of the appropriate Special Tax for "Developed
Property," "Other Taxable Property," and "Undeveloped Property" as described below. All of the
property in IA No. 2, 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.
This Amended and Restated Rate and Method of Apportionment employs terms defined
below and terms defined in the Rate and Method of Apportionment for Improvement Area
No. 1. When necessary, terms defined in the latter shall be distinguished from terms defined
in the former by including the words "IA No. V prior to the defined term. The terms
hereinafter set forth have the following meanings:
"Acre" or "Acreage" means the area of an Assessor's Parcel as shown on an Assessor's
Parcel Map, or if the area is not shown on an Assessor's Parcel Map, the area shown on the
applicable final map, parcel map, condominium plan, or other recorded County parcel map.
"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 of IA No. 2 and each Zone therein: 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 or otherwise); the costs of remitting 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, IA No. 2 or any designee thereof of complying
with arbitrage rebate requirements; the costs to the City, IA No. 2 or any designee thereof of
complying with City, IA No. 2 or obligated persons disclosure requirements associated with
applicable federal and 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 or the Bonds; the costs of the City, IA No. 2 or any designee thereof related to an
appeal of the Special Tax; the costs associated with the release of funds from an escrow
account; that portion of the City's overhead and staff time related to the administration of IA
No. 2; and the City's third party expenses. Administrative Expenses shall also include
amounts estimated or advanced by the City or IA No. 2 for any other administrative purposes
City of Azusa October 24, 2011
1A No. 2 of CFD No. 2005-1(Rosedale) Page 1
of IA No. 2, 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 nwnber.
"Assessor's Parcel Map" means an official map of the Assessor of the County designating
parcels by Assessor's Parcel number.
"Backup Special Tax A" means a special tax payable by a property owner that may be
required to be paid subsequent to the issuance of the first series of Bonds as a result of
changes in development, as determined in accordance with Section D below.
"Bonds" means any bonds or other debt (as defined in Section 53317(d) of the Act), whether
in one or more series, issued by IA No. 2 under the Act.
"Builder" means an entity which owns a residential dwelling unit immediately prior to the
issuance of a Certificate of Occupancy, and then enters into a contract to sell that dwelling
unit for its Value to an Original Homeowner.
"Certificate of Occupancy" means a document issued by the City which permits the initial
habitation of one or more newly constructed residential dwelling units or non-residential
space.
"CFD Administrator" means an official of the City, or designee thereof, responsible for
determining the Special Tax Requirement for Facilities and the Special Tax Requirement for
Services, and providing for the levy and collection of the Special Taxes.
"CFD No. 2005-1" means City of Azusa Community Facilities District No. 2005-1
(Rosedale).
"City" means the City of Azusa.
"Council" means the City Council of the City, acting as the legislative body of CFD No.
2005-1.
"County" means the County of Los Angeles.
"Developed Property" means, for each Fiscal Year, all Taxable Property, exclusive of
Taxable Property Owner Association Property or Taxable Public Property, for which a
building permit for new construction was issued after January 1, 2006 and as of May 1 of the
previous Fiscal Year.
"Fiscal Year" means the period starting July 1 and ending on the following June 30.
City of Azusa October 24, 207/
!A No. 2 of CFD No. 2005-1 (Rosedale) Page 2
"Improvement Area No. 1" or "IA No. 1" means Improvement Area No. 1 of CFD No.
2005-1, as identified on the boundary map for CFD No. 2005-1, and includes each zone
therein.
"Improvement Area No. 2" or "IA No. 2" means Improvement Area No. 2 of CFD No.
2005-1, as identified on the boundary map for CFD No. 2005-1, and includes each Zone
therein.
"Indenture" means the indenture, fiscal agent agreement, resolution or other instrument
pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to
time.
"Land Use Class" means any of the classes listed in Table 1, Table 2, or Table 4.
"Maximum Special Tax" means the Maximum Special Tax A and/or Maximum Special
Tax B, as applicable.
"Maximum Special Tax A" means the Maximum Special Tax A, determined in accordance
with Section C.1 below, that can be levied in any Fiscal Year on an Assessor's Parcel within
IA No. 2.
"Maximum Special Tax B" means the Maximum Special Tax B, determined in accordance
with Section C.2 below, that can be levied in any Fiscal Year on an Assessor's Parcel within
IA No. 2.
"Non -Residential Property" means all Assessor's Parcels of Developed Property for which
a building permit(s) was issued for a non-residential use.
"One -Time Special Tax" means a one-time special tax payable by a Builder prior to
issuance of a Certificate of Occupancy for a residential dwelling unit in order to reduce the
Maximum Special Tax A on such dwelling unit, so that the Total Tax and Assessment
Obligation for the Fiscal Year in which a Certificate of Occupancy for such residential
dwelling unit is expected to be issued will not exceed two percent (2.00%) of the Value of
such residential dwelling unit.
"Original Homeowner" means the first homeowner expected to purchase and close escrow
on a residential dwelling unit from a Builder after the issuance of a Certificate of Occupancy.
"Other Taxable Property" means Taxable Property Owner Association Property and
Taxable Public Property.
"Outstanding Bonds" means all Bonds which are deemed to be outstanding under the
Indenture.
"Planning Area" means a geographic area within IA No. 2 which has been designated as a
Planning Area as identified in Exhibit A herein.
City of Azusa October 24, 2011
lA No. 2 of CFD No. 2005-1 (Rosedale) Page 3
"Post -Bond Certificate of Occupancy" means a Certificate of Occupancy that is issued
after the issuance of the first series of Bonds.
"Property Owner Association Property" means, for each Fiscal Year, any Assessor's
Parcel within the boundaries of IA No. 2 that was owned by or irrevocably offered for
dedication to a property owner association, including any master or sub -association, as of
January 1 of the previous Fiscal Year.
"Proportionately" means for Developed Property that the ratio of the actual Special Tax A
levy to the Maximum Special Tax A is equal for all Assessor's Parcels of Developed
Property and that the ratio of the actual Special Tax B levy to the Maximum Special Tax B is
equal for all Assessor's Parcels of Developed Property, except to the extent that the Special
Tax levy on Residential Property is limited as described in Section G below. For
Undeveloped Property and Other Taxable Property, "Proportionately" means that the ratio of
the actual Special Tax A levy per Acre to the Maximum Special Tax A per Acre is equal for
all Assessor's Parcels of Undeveloped Property or Other Taxable Property and that the ratio
of the actual Special Tax B levy to the Maximum Special Tax B is equal for all Assessor's
Parcels of Undeveloped Property or Other Taxable Property.
"Public Property" means, for each Fiscal Year, (i) any property within the boundaries of IA
No. 2 that was owned by or irrevocably offered for dedication to the federal government, the
State, the City or any other public agency as of January 1 of the previous Fiscal Year;
provided however that any property leased by a public agency to a private entity and subject
to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with
its use; or (ii) any property within the boundaries of CFD No. 2005-1 that was encumbered,
as of January 1 of the previous Fiscal Year, by an unmanned utility easement making
impractical its utilization for other than the purpose set forth in the easement.
"Residential Floor Area" for any Residential Property 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 CFD Administrator shall
determine the Residential Floor Area of each dwelling unit based on the building permit,
condominium plan, or other available information.
"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.
"RMA" means this Amended and Restated Rate and Method of Apportionment.
"Special Tax" means the Special Tax A, Special Tax B, Backup Special Tax A, and/or One -
Time Special Tax, as applicable.
"Special Tax A" means the special tax to be levied in each Fiscal Year on each Assessor's
Parcel of Taxable Property to fund the Special Tax Requirement for Facilities.
City of Azusa October 24, 2011
IA No. 2 of CFD No. 2005.1 (Rosedale) Page 4
"Special Tax B" 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 for Services.
"Special Tax Requirement for Facilities" means that amount required in any Fiscal Year
for IA No. 2 to: (i) pay 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 all or a portion of Administrative Expenses; (iv) pay any amounts required to
establish or replenish any reserve funds for all Outstanding Bonds; (v) pay directly for
acquisition or construction of facilities eligible under the Act and authorized to be financed
in IA No. 2 to the extent that inclusion of such amount does not increase the Special Tax A
levy on Undeveloped Property; and (vi) pay for reasonably anticipated Special Tax A
delinquencies based on the delinquency rate for Special Taxes levied in the previous Fiscal
Year; less (vii) a credit for funds available to reduce the annual Special Tax A levy, as
determined by the CFD Administrator pursuant to the Indenture.
"Special Tax Requirement for Services" means that amount required in any Fiscal Year
for CFD No. 2005-1 to: (i) pay directly for all public services eligible under the Act; (ii) pay
Administrative Expenses not funded through the Special Tax Requirement for Facilities as
determined by the CFD Administrator and IA No. l Administrative Expenses not funded
through the IA No. 1 Special Tax Requirement for Facilities; less (iii) a credit for funds
available to reduce the annual Special Tax B levy and the IA No. I Special Tax B levy, as
determined by the CFD Administrator. The Special Tax Requirement for Services represents
the total amount to be levied in any Fiscal Year within IA No. 1 and IA No. 2.
"State" means the State of California.
"Taxable Property" means all of the Assessor's Parcels within the boundaries of IA No. 2
which are not exempt from the Special Tax pursuant to law or Section H below.
"Taxable Property Owner Association Property" means all Assessors Parcels of Property
Owner Association Property that are not exempt from the Special Tax pursuant to Section H
below.
"Taxable Public Property" means all Assessor's Parcels of Public Property that are not
exempt from the Special Tax pursuant to Section H below.
"Total Tax and Assessment Obligation" means for any residential dwelling unit, the sum
of the projected ad valorem taxes and any other charges, special assessments, or taxes which
are expected to be included on the annual property tax bill for the Fiscal Year in which the
calculation is being performed assuming such residential dwelling unit had been completed,
sold, and subject to such levies and impositions in such Fiscal Year. For purposes of this
calculation, the CFD Administrator shall include the Maximum Special Tax A and
Maximum Special Tax B for CFD No. 2005-1 plus estimated amounts for all other items
expected to appear on the property tax bill.
"Trustee" means the trustee or fiscal agent under the Indenture.
City of Azusa October 24, 2011
IA No. 2 of CFD No. 2005-1 (Rosedale) Page 5
"Undeveloped Properly" means, for each Fiscal Year, all Taxable Property not classified as
Developed Property or Other Taxable Property.
"Value" means the full sales price of a residential dwelling unit as determined prior to the
close of escrow by the Builder and the Original Homeowner, as listed on the preliminary
escrow closing statement prepared by the title company for such sale, or if such preliminary
escrow closing statement is unavailable, as reasonably determined by the CFD Administrator.
"Zone" means Zone 1 and/or Zone 2, as applicable.
"Zone 1" means the property identified as Zone 1 (Great Park and Transit 1) of IA No. 2, as
identified on the boundary map for CFD No. 2005-1.
"Zone 2" means the property identified as Zone 2 (Transit 2) of IA No. 2, as identified on
the boundary map for CFD No. 2005-1.
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, all Taxable Property within IA No. 2 shall be assigned to Zone 1 or Zone 2
and classified as Developed Property, Other Taxable Property, or Undeveloped Property, and
shall be subject to Special Taxes in accordance with this RMA. Developed Property shall be
classified as Residential Property and Non -Residential Property.
C. MAXIMUM SPECIAL TAX RATE
1. Special Tax A
a. Developed Property
Residential Property in Zone 1 shall be assigned to Land Use Classes 1
through 5 in Table 1, and Non -Residential Property in Zone 1 shall be
assigned to Land Use Class 6 in Table 1. Residential Property in Zone 2 shall
be assigned to Land Use Classes I through 3 in Table 2, and Non -Residential
Property in Zone 2 shall be assigned to Land Use Class 4 in Table 2. The
Maximum Special Tax A for Residential Property shall be based on the
number of residential dwelling units and the Residential Floor Area of such
residential dwelling units located on the Assessors Parcel. The Maximum
Special Tax A for Non -Residential Property shall be based on the Acreage of
the Assessor's Parcel.
The Maximum Special Tax A as set forth in Sections C. L(a)(i) and C. L(a)(ii)
below may be reduced in accordance with, and subject to the conditions set
forth in, Section F below.
City of Azusa October 24, 2011
IA No. 2 of CFD No. 2005-1 (Rosedale) PaRe 6
(i) Maximum Special Tax A - Zone 1
The Fiscal Year 2012-2013 Maximum Special Tax A for each Land
Use Class within Zone 1 is shown below in Table 1.
TABLE 1
Maximum Special Tax A for Developed Property
Fiscal Year 2012-2013
Zone 1
IAA use
ClamsResidential
Docription
Floor
ArtsMaadmum
Zane 1
(G ck t Paand Tmn* 1)
Sp"W Tax A
I
Residential Property
> 1,950 SF
$2.948 per dwelling unit
2
Residential Property
1,751 - 1,950 SF
$2,719 per dwelling unit
3
Residential Property
1.551 - 1,750 SF
$2,420 per dwelling unit
4
Residential Property
1,401 - 1,550 SF
$2.178 per dwelling unit
5
Residential Property
< 1,401 SF
$1,986 per dwelling unit
6
Non -Residential Property
NA
$15.000 per Acre
On each July 1, commencing July 1, 2013, the Maximum Special Tax
A for each Land Use Class shall be increased by an amount equal to
two percent (2%) of the amount in effect for the previous Fiscal Year.
(ii) Maximum Special Tax A - Zone 2
The Fiscal Year 2012-2013 Maximum Special Tax A for each Land
Use Class within Zone 2 is shown below in Table 2.
City of Azusa Oclober 24, 2011
IA No. 2 of CFD No. 2005-1(Rosedale) Page 7
TABLE 2
Maximum Special Tax A for Developed Property
Fiscal Year 2012-2013
Zone 2
1 Residential Property > 1,300 SF $2,179 per dwelling unit
2 Residential Property 1,201 — 1,300 SF $2,069 per dwelling unit
3 Residential Property < 1,201 SF $1,886 per dwelling unit
4 Non -Residential Property NA $15,000 per Acre
On each July 1, commencing July 1, 2013, the Maximum Special Tax A for
each Land Use Class shall be increased by an amount equal to two percent
(2%) of the amount in effect for the previous Fiscal Year.
Undeveloped Property and Other Taxable Property
The Fiscal Year 2012-2013 Maximum Special Tax A for Undeveloped
Property and Other Taxable Property within each Zone is shown below in
Table 3.
TABLE 3
Maximum Special Tax A for
Undeveloped Property and Other Taxable Property
Fiscal Year 2012-2013
Zone 1 and Zone 2
On each July 1, commencing July 1, 2013, the Maximum Special Tax A for
Undeveloped Property and Other Taxable Property in Zone 1 and Zone 2
shall be increased by an amount equal to two percent (2%) of the amount in
effect for the previous Fiscal Year.
(iv) Multiple Land Use Classes
City of Azusa October 24, 2011
/A No. 2 of CFD No. 2005-1 (Rosedale) Page 8
CY20122013
f}
v„ ,
Tax A
tiMawmumSpectal
1
$127,870 per Acre
2
$146,625 per Acre
On each July 1, commencing July 1, 2013, the Maximum Special Tax A for
Undeveloped Property and Other Taxable Property in Zone 1 and Zone 2
shall be increased by an amount equal to two percent (2%) of the amount in
effect for the previous Fiscal Year.
(iv) Multiple Land Use Classes
City of Azusa October 24, 2011
/A No. 2 of CFD No. 2005-1 (Rosedale) Page 8
In some instances an Assessor's Parcel of Developed Property may
contain more than one Land Use Class. The Maximum Special Tax
A that can be levied on an Assessor's Parcel shall be the sum of the
Maximum Special Tax A that can be levied for all Land Use Classes
located on that Assessor's Parcel. For an Assessor's Parcel that
contains both Residential Property and Non -Residential Property, the
Acreage of such Assessor's Parcel shall be allocated to each type of
property based on the amount of Acreage designated for each land use
as determined by reference to the site plan approved for such
Assessor's Parcel. The CFD Administrator's allocation to each type
of property shall be final.
2. Special Tax B
a. Developed Property
(i) Maximum Special Tax B
The Fiscal Year 2012-2013 Maximum Special Tax B for each
Assessor's Parcel classified as Developed Property in Zone 1 and
Zone 2 shall be the amount shown below in Table 4.
TABLE 4
Maximum Special Tax B for Developed Property
Fiscal Year 2012-2013
Zone 1 and Zone 2
On each July 1, commencing July 1, 2013, the Maximum Special Tax
B for Developed Property in Zone 1 and Zone 2 shall be increased by
an amount equal to two percent (2%) of the amount in effect for the
previous Fiscal Year.
(ii) Multiple Land Use Classes
In some instances an Assessor's Parcel of Developed Property may
contain more than one Land Use Class. The Maximum Special Tax B
levied on an Assessor's Parcel shall be the sum of the Maximum
Special Tax B for all Land Use Classes located on that Assessor's
City of Azusa October 24, 2011
1A No. 2 of CFD No. 2005-1 (Rosedale) page 9
Zone 1
Zone 2
Land Use
Desaip�n
FY 20122013
FY 2012.2013
L7m
Maximum Special
Maximum Special
Tax B
Tax B
1
Residential Property
$345.35 per dwelling unit
$326.17 per dwelling unit
2
Non -Residential Property
34,907.78 per Acre
$4,887.67 per Acre
On each July 1, commencing July 1, 2013, the Maximum Special Tax
B for Developed Property in Zone 1 and Zone 2 shall be increased by
an amount equal to two percent (2%) of the amount in effect for the
previous Fiscal Year.
(ii) Multiple Land Use Classes
In some instances an Assessor's Parcel of Developed Property may
contain more than one Land Use Class. The Maximum Special Tax B
levied on an Assessor's Parcel shall be the sum of the Maximum
Special Tax B for all Land Use Classes located on that Assessor's
City of Azusa October 24, 2011
1A No. 2 of CFD No. 2005-1 (Rosedale) page 9
Parcel. For an Assessor's Parcel that contains both Residential
Property and Non -Residential Property, the Acreage of such
Assessor's Parcel shall be allocated to each type of property based on
the amount of Acreage designated for each land use as determined by
reference to the site plan approved for such Assessor's Parcel. The
CFD Administrator's allocation to each type of property shall be
final.
b. Undeveloped Propertv
The Fiscal Year 2012-2013 Maximum Special Tax B for Undeveloped
Property within each Zone is shown below in Table 5.
TABLE 5
Maximum Special Tax B for
Undeveloped Property
Fiscal Year 2012-2013
Zone 1 and Zone 2
On each July 1, commencing July 1, 2013 the Maximum Special Tax
B for Undeveloped Property in Zone 1 and Zone 2 shall be increased
by an amount equal to two percent (2%) of the amount in effect for
the previous Fiscal Year.
C. Property Owner Association Property and Public Property
There shall be no Special Tax B levied on Property Owner Association
Property and Public Property.
D. BACKUP SPECIAL TAX A
All of the requirements of this Section D, which describes the need for a Backup Special Tax
A payment resulting from a change in development, shall only apply after the issuance of the
first series of Bonds. Prior to the issuance of the first series of Bonds, no Backup Special
Tax A calculation shall be necessary and no Backup Special Tax A payment shall be
required.
Prior to the issuance of a Post -Bond Certificate of Occupancy for an Assessor's Parcel of
Developed Property (the "Subject Property"), the CFD Administrator shall make a
determination of whether or not a Backup Special Tax A payment is required for the
City of Azusa October 24, 2011
!A No.1 of CFD No. 1005-1 (Rosedale) Page 10
,<
M> FY 2012 2013,v
Zone ^
,A Maximum $pectal Taxis,
r
f z t
1
$1,997.20 per Acre
2
$1,997.20 per Acre
On each July 1, commencing July 1, 2013 the Maximum Special Tax
B for Undeveloped Property in Zone 1 and Zone 2 shall be increased
by an amount equal to two percent (2%) of the amount in effect for
the previous Fiscal Year.
C. Property Owner Association Property and Public Property
There shall be no Special Tax B levied on Property Owner Association
Property and Public Property.
D. BACKUP SPECIAL TAX A
All of the requirements of this Section D, which describes the need for a Backup Special Tax
A payment resulting from a change in development, shall only apply after the issuance of the
first series of Bonds. Prior to the issuance of the first series of Bonds, no Backup Special
Tax A calculation shall be necessary and no Backup Special Tax A payment shall be
required.
Prior to the issuance of a Post -Bond Certificate of Occupancy for an Assessor's Parcel of
Developed Property (the "Subject Property"), the CFD Administrator shall make a
determination of whether or not a Backup Special Tax A payment is required for the
City of Azusa October 24, 2011
!A No.1 of CFD No. 1005-1 (Rosedale) Page 10
Planning Area in which the Subject Property is located. The CFD Administrator shall charge
a fee for providing this determination and shall follow the steps listed below.
Step No.:
1. Required Special Tax A Revenues
As of the date of the issuance of any series of Bonds, the Required Special
Tax A Revenues for IA No. 2 shall be established to equal (i) 1.1 times the
discounted maximum annual gross debt service for all Outstanding Bonds
(including those Bonds currently being issued, if any), which shall be
computed by determining the Fiscal Year in which occurs the maximum
aggregate annual gross debt service for all Bonds and discounting that
amount from such Fiscal Year to the current Fiscal Year using a discount rate
reflecting the actual rate of increase (if any) of the debt service on the Bonds,
plus (ii) anticipated Administrative Expenses in the next Fiscal Year. The
CFD Administrator shall allocate such Required Special Tax A Revenues to
each Planning Area based on the current Expected Special Tax A Revenues
and identify such allocation in the records of IA No. 2. Such allocation shall
remain valid except as adjusted under 1.(a) or 1.(b) below:
(a) On each July 1, the Required Special Tax A Revenues for
each Planning Area shall be increased by an amount equal to
the annual percentage increase in the debt service on the
Bonds.
(b) The CFD Administrator shall reduce the Required Special
Tax A Revenues for any Planning Area as necessary to reflect
reduced revenues required as a result of a Backup Special Tax
A payment, One -Time Special Tax payment, or prepayment
made with respect to an Assessor's Parcel in such Planning
Area,
2. Expected Special Tax A Revenues
Prior to the issuance of a Post -Bond Certificate of Occupancy for the Subject
Property, the CFD Administrator shall estimate the Expected Special Tax A
Revenues that will be generated at buildout of the Planning Area in which the
Subject Property is located based on the Maximum Special Tax A rates then
in effect and the current development plan for such Planning Area based on
building permits issued to date, expected building permits to be issued in the
future, and all other relevant development information available to the CFD
Administrator.
3. Determination of Need for Backup Special Tax
If the CFD Administrator determines that the Expected Special Tax A
City of Azusa October 24, 2011
IA No. 2 of CFD No. 2005-1 (Rosedale) Page 11
Revenues that will be generated at buildout in the Planning Area in which the
Subject Property is located are less than such Planning Area's Required
Special Tax A Revenues (as adjusted to the date of calculation), then a
Backup Special Tax A payment will be required for such Planning Area.
However, if it is determined that the Expected Special Tax A Revenues are
greater than or equal to the Planning Area's Required Special Tax A
Revenues (as adjusted to the date of calculation), then no Backup Special Tax
A payment will be required.
4. Calculation of Backup Special Tax
If a Backup Special Tax A payment is required pursuant to step 3 above, such
payment shall equal that Prepayment Amount calculated pursuant to Section
K.3.
5. Payment
The Backup Special Tax A computed under this section shall be paid by the
owner of the Subject Property prior to the issuance of the Certificate of
Occupancy for the Subject Property.
E. ONE-TIME SPECIAL TAX
Prior to the issuance of a Certificate of Occupancy for a residential dwelling unit, the CFD
Administrator shall make a one-time determination of whether or not a One -Time Special
Tax payment is required for such dwelling unit. The CFD Administrator shall charge a fee
for providing this determination.
A One -Time Special Tax payment shall be paid by the Builder for a residential dwelling unit
if the Total Tax and Assessment Obligation is expected to be greater than two percent
(2.00%) of the Value for such residential dwelling unit. The amount of the One -Time
Special Tax for such residential dwelling unit shall equal that Partial Prepayment Amount
calculated pursuant to Section K.2 which shall be sufficient to reduce the Total Tax and
Assessment Obligation to two percent (2.00%) of the Value for such residential dwelling
unit.
If the Total Tax and Assessment Obligation for a residential dwelling unit is expected to be
less than or equal to two percent (2.00%) of the Value of such residential dwelling unit, no
One -Time Special Tax will be required.
F. SPECIAL TAX REDUCTION
Any Special Tax Reduction determined pursuant to this section will not apply to dwelling
units for which One -Time Special Tax calculations were prepared prior to the date of the
Price Point Study, whether or not such calculations resulted in a One -Time Special Tax
payment.
City of Azusa October 24, 2011
IA No. 2 of CFD No. 2005.1 (Rosedale) pare 12
The following definitions apply to this Section F:
"Independent Price Point Consultant" means any consultant or firm of such consultants
selected by CFD No. 2005-1 that (a) has substantial experience in performing price point
studies for residential units within community facilities districts or otherwise estimating or
confirming pricing for residential units in community facilities districts, (b) is well versed in
analyzing economic and real estate data that relates to the pricing of residential units in
community facilities districts, (c) is in fact independent and not under the control of CFD No.
2005-1 or the City, (d) does not have any substantial interest, direct or indirect, with or in (i)
CFD No. 2005-1, (ii) the City, (iii) any owner of real property in CFD No. 2005-1, or (iv) any
real property in CFD No. 2005-1, and (e) is not connected with CFD No. 2005-1 or the City
as an officer or employee thereof, but who may be regularly retained to make reports to CFD
No. 2005-1 or the City.
"Plan Type" means a discrete residential plan type (generally consisting of residential
dwelling units that share a common product type (e.g., single family, multi -family, senior)
and that have nearly identical amounts of living area) that is constructed or expected to be
constructed within a Planning Area of IA No. 2 as identified in the Price Point Study.
"Price Point" means, with respect to the residential dwelling units in each Plan Type, as of
any date, the minimum base price of such residential dwelling units, estimated as of such
date, including any incentives and concessions, but excluding potential appreciation or
premiums, options or upgrades, based upon their actual or expected characteristics, such as
living area and lot size.
"Price Point Study" means a price point study or a letter updating a previous price point
study, which (a) has been prepared by an Independent Price Point Consultant, (b) sets forth
the Plan Types constructed or expected to be constructed within IA No. 2, (c) sets forth the
estimated number of constructed and expected residential dwelling units for each Plan Type,
(d) sets forth such Independent Price Point Consultant's estimate of the Price Point for each
Plan Type, and (e) uses a date for establishing such Price Points that is no earlier than 60
days prior to the date the Price Point Study is delivered to the CFD Administrator. Dwelling
units for which One -Time Special Tax calculations have been prepared previously will not be
included in the Price Point Study.
Prior to the issuance of the first series of Bonds, the following steps shall be taken:
Step No.:
At least 30 days prior to the expected issuance date of the first series of Bonds, IA
No. 2 shall cause a Price Point Study to be delivered to the CFD Administrator.
2. As soon as practicable after receipt of the Price Point Study, the CFD Administrator
shall calculate the Total Tax and Assessment Obligation for each Plan Type included
in the Price Point Study.
City of Azusa October 24, 2011
JA No. 2 of CFD No. 2005-1(Rosedale) Page 13
3. The CFD Administrator shall determine the Expected Special Tax A Revenues for
each Planning Area by taking the sum of the Maximum Special Tax A revenues
expected to be generated at buildout based on building permits issued to date.
expected future development identified in the Price Point Study, and all other
relevant development information available to the CFD Administrator
4. Separately, for each Land Use Class, the CFD Administrator shall determine whether
or not the Total Tax and Assessment Obligation for all Plan Types in a Land Use
Class is less than or equal to 2.00% of the Price Point for such Plan Type.
a. If the Total Tax and Assessment Obligation for all Plan Types in a Land Use
Class is less than or equal to 2.00% of the Price Point for such Plan Type, then
there shall be no change in the Maximum Special Tax A for such Land Use
Class.
b. If the Total Tax and Assessment Obligation for any Plan Type in a Land Use
Class is greater than 2.00% of the Price Point for such Plan Type, the CFD
Administrator shall calculate a revised Maximum Special Tax A for such Land
Use Class, which revised Maximum Special Tax A shall be the highest amount
(rounded to the nearest whole dollar) that will not cause the Total Tax and
Assessment Obligation for any Plan Type in such Land Use Class to exceed
2.00% of the Price Point for such Plan Type. The amount of the change in the
Maximum Special Tax A for a particular Land Use Class is not required to be
proportional to changes in the Maximum Special Tax A made for other Land Use
Classes.
5. If the Maximum Special Tax A for any Land Use Class is revised pursuant to step
4.b. above, the CFD Administrator shall prepare and execute a Certificate of
Reduction in Special Taxes substantially in the form of Exhibit B hereto and shall
deliver such Certificate of Reduction in Special Taxes to CFD No. 2005-1. The
Certificate of Reduction in Special Taxes shall be completed for all Land Use Classes
and shall set forth, as applicable, either (i) the reduced Maximum Special Tax A for a
Land Use Class as calculated pursuant to step 4.b., or (ii) the Maximum Special Tax
A as identified in Table 1 or Table 2 in Section C. L(a) for a Land Use Class that was
not revised as determined pursuant to step 4.a.
6. If the first series of Bonds is issued within 90 days of the date of receipt of the Price
Point Study by the CFD Administrator, CFD No. 2005-1 shall execute the
acknowledgement on such Certificate of Reduction in Special Taxes, dated as of the
date of such issuance, and, upon the issuance of such first series of Bonds, the
Maximum Special Tax A for each Land Use Class shall, ipso facto, be, for all
purposes, as set forth in such Certificate of Reduction in Special Taxes (except for
Assessor's Parcels excluded from the reduction as identified in Attachment B to the
Certificate of Reduction in Special Taxes). If the first series of Bonds is not issued
within 90 days of the date of receipt of the Price Point Study by the CFD
Administrator, such Certificate of Reduction in Special Taxes shall not be
acknowledged by CFD No. 2005-1 and shall, as of such date, be void and of no
City of Azusa October 24, 2011
]A No.1 of CFD No. 2005-1 (Rosedale) Page 14
further force and effect. In such case, if subsequently, a first series of Bonds is
expected to be issued, at least 30 days prior to the expected issuance date of such fust
series of Bonds, the CFD Administrator shall cause a new Price Point Study to be
delivered to the CFD Administrator and, following such delivery, steps 2 through 5
of this section shall be performed based on such new Price Point Study.
7. As soon as practicable after the execution by CFD No. 2005-1 of the
acknowledgement on the Certificate of Reduction in Special Taxes, CFD No. 2005-1
shall cause to be recorded in the records of the County Recorder an Amended Notice
of Special Tax Lien for IA No. 2 reflecting the Maximum Special Tax A for all Land
Use Classes set forth in such Certificate of Reduction in Special Taxes only for those
Assessor's Parcels listed in Exhibit A to such notice (Assessor's Parcels for which a
One -Time Special Tax was not previously calculated).
If the Maximum Special Tax A is not required to be changed for each Land Use Class
based on the calculations performed above, there shall be no reduction in the
Maximum Special Tax A, and no Certificate of Reduction in Special Taxes shall be
required. However the CFD Administrator shall prepare and deliver to CFD No.
2005-1 a Certificate of No Reduction in Special Taxes substantially in the form of
Exhibit C hereto dated as of the date of the issuance of the first series of Bonds that
states that the calculations required pursuant to this Section F have been made and
that no changes to the Maximum Special Tax A are necessary.
9. CFD No. 2005-1 and the CFD Administrator shall take no further actions under this
Section F upon the earlier to occur of the following: (i) the execution of the
acknowledgement by CFD No. 2005-1 on a Certificate of Reduction in Special Taxes
pursuant to step 6 above; or (ii) the delivery by the CFD Administrator of a
Certificate of No Reduction in Special Taxes pursuant to step 8 above.
G. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
1. Special Tax A
Commencing with Fiscal Year 2012-2013 and for each following Fiscal Year, the
Council shall levy the Special Tax A until the amount of Special Tax A equals the
Special Tax Requirement for Facilities. The Special Tax A shall be levied each Fiscal
Year as follows:
First: The Special Tax A shall be levied Proportionately on each Assessor's Parcel of
Developed Property in Zone 1 and Zone 2 at up to 100% of the applicable Maximum
Special Tax A as needed to satisfy the Special Tax Requirement for Facilities;
Second: If additional monies are needed to satisfy the Special Tax Requirement for
Facilities after the first step has been completed, the Special Tax A shall be levied
Proportionately on each Assessor's Parcel of Undeveloped Property in Zone 1 and
Zone 2 at up to 100% of the Maximum Special Tax A for Undeveloped Property;
City of Azusa October 24, 2011
1A No.1 of CFD No. 20OS-1(Rosedale) Page 15
Third: If additional monies are needed to satisfy the Special Tax Requirement for
Facilities after the first two steps have been completed, then the Special Tax A shall
be levied Proportionately on each Assessor's Parcel of Other Taxable Property in
Zone 1 and Zone 2 at up to the Maximum Special Tax A for Other Taxable Property.
2. Special Tax B
Commencing with Fiscal Year 2012-2013 and for each following Fiscal Year, the
Council shall determine the Special Tax Requirement for Services and levy the
Special Tax B, taking into consideration the levy of the IA No. 1 Special Tax B, until
the amount of Special Tax B and IA No. 1 Special Tax B equals the Special Tax
Requirement for Services. The Special Tax B shall be levied each Fiscal Year as
follows:
First: The Special Tax B shall be levied Proportionately on each Assessor's Parcel of
Developed Property in Zone I and Zone 2 at up to 100% of the applicable Maximum
Special Tax B as needed to satisfy the Special Tax Requirement for Services; and the
Council shall be notified that under the terms of the IA No. 1 RMA, the IA No. 1
Special Tax B shall be levied on each Assessor's Parcel of IA No. 1 Developed
Property in Zone 1 and Zone 2 at up to 100% of the applicable IA No. 1 Maximum
Special Tax B as needed to satisfy the Special Tax Requirement for Services;
Second: If additional monies are needed to satisfy the Special Tax Requirement for
Services after the first step has been completed, the Special Tax B shall be levied
Proportionately on each Assessors Parcel of Undeveloped Property in Zone 1 and
Zone 2 at up to 100% of the Maximum Special Tax B for Undeveloped Property; the
Council shall be notified that under the terms of the IA No. 1 RMA, the IA No. 1
Special Tax B shall be levied Proportionately on each Assessor's Parcel of IA No. 1
Undeveloped Property in Zone 1 and Zone 2 at up to 100% of the IA No. I
Maximum Special Tax B for Undeveloped Property.
3. Backup Special Tax A
The Backup Special Tax A payment may be levied on any Assessor's Parcel as
required in Section D.
4. One -Time Special Tax
The One -Time Special Tax may be levied on any Assessor's Parcel as required in
Section E.
Notwithstanding the above, under no circumstances will the Special Tax A or Special Tax B
levied in any Fiscal Year against any Assessor's Parcel of Residential Property be increased
as a consequence of delinquency or default by the owner or owners of any other Assessor's
Parcel(s) within IA No. 2 by more than 10% above the amount that would have been levied
in that Fiscal Year had there never been any such delinquencies or defaults. To the extent
that the levy of the Special Tax A or Special Tax B on Residential Property is limited by the
City of Azusa October 24, 2011
IA No. 2 of CFD No. 2005-1 (Rosedale) Paee 16
provision in the previous sentence, the levy of the Special Tax A or Special Tax B on each
Assessor's Parcel of Non -Residential Property shall continue in equal percentages at up to
100% of the Maximum Special Tax.
H. EXEMPTIONS
1. Special Tax A
No Special Tax A shall be levied on up to 20.36 Acres of Property Owner
Association Property and Public Property in Zone 1 and up to 7.35 Acres of Property
Owner Association Property and Public Property in Zone 2. Tax-exempt status will
be assigned by the CFD Administrator in the chronological order in which property
becomes Property Owner Association Property or Public Property. However, should
an Assessor's Parcel no longer be classified as Property Owner Association Property
or Public Property its tax-exempt status will be revoked.
Property Owner Association Property or Public Property that is not exempt from
Special Tax A under this section shall be subject to the levy of the Special Tax A and
shall be taxed Proportionately as part of the third step in Section G.1 above, at up to
100% of the applicable Maximum Special Tax A for Other Taxable Property.
2. Special Tax B
No Special Tax B shall be levied on Property Owner Association Property and Public
Property.
I. APPEALS AND INTERPRETATIONS
Any landowner or resident may file a written appeal of the Special Tax on his/her property
with the CFD Administrator, provided that the appellant is current in his/her payments of
Special Taxgs. During the pendency of an appeal, all Special Taxes previously levied must
be paid on or before the payment date established when the levy was made. The appeal must
specify the reasons why the appellant claims the Special Tax is in error. The CFD
Administrator shall review the appeal, meet with the appellant if the CFD Administrator
deems necessary, and advise the appellant of its determination. If the CFD Administrator
agrees with the appellant, the CFD Administrator shall eliminate or reduce the Special Tax
on the appellant's property and/or provide a refund to the appellant. If the CFD
Administrator disagrees with the appellant and the appellant is dissatisfied with the
determination, the appellant then has 30 days in which to appeal to the Council by filing a
written notice of appeal with the City Clerk, provided that the appellant is current in his/her
payments of Special Taxes. The second appeal must specify the reasons for its disagreement
with the CFD Administrator's determination.
Interpretations may be made by the Council by ordinance or resolution for purposes of
clarifying any vagueness or ambiguity in this Amended and Restated Rate and Method of
Apportionment.
City of Azusa October 24, 2011
IA No. 2 of CFD No. 2005-1 (Rosedale) Page 17
I MANNER OF COLLECTION
The Special Tax A and Special Tax B shall be collected in the same manner and at the same
time as ordinary ad valorem property taxes; provided, however, that IA No. 2 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 delinquent Assessor's Parcels as permitted by the Act.
The Backup Special Tax A and One -Time Special Tax shall be paid directly to the City by,
or on behalf of, the Builder or property owner.
K. PREPAYMENT OF SPECIAL TAX
The following definitions apply to this Section K:
"CFD Public Facilities" means either $11.5 million in 2012 dollars, which shall increase by
the Construction Inflation Index on July 1, 2013, and on each July 1 thereafter, or such lower
number as (i) shall be determined by the CFD Administrator as sufficient to provide the
public facilities to be provided by IA No. 2 under the authorized bonding program for IA No.
2, or (ii) shall be determined by the Council concurrently with a covenant that it will not
issue any more Bonds to be supported by Special Taxes levied under this Amended and
Restated Rate and Method of Apportionment.
"Construction Inflation Index" means the annual percentage change in the Engineering
News -Record Building Cost Index for the City of Los Angeles, measured as of the calendar
year which ends in the previous Fiscal Year. In the event this index ceases to be published,
the Construction Inflation Index shall be another index as determined by the CFD
Administrator that is reasonably comparable to the Engineering News -Record Building Cost
Index for the City of Los Angeles.
"Future Facilities Costs" means the CFD Public Facilities minus (i) public facility costs
previously paid from the Improvement Fund, (ii) moneys currently on deposit in the
Improvement Fund, and (iii) moneys currently on deposit in an escrow fund that are expected
to be available to finance public facilities costs.
"Improvement Fund" means an account specifically identified in the Indenture to hold
funds which are currently available for expenditure to acquire or construct facilities eligible
under the Act.
"Outstanding Bonds" means all Previously Issued Bonds which are deemed to be
outstanding under the Indenture after the first interest and/or principal payment date
following the current Fiscal Year.
"Previously Issued Bonds" means all Bonds that have been issued by IA No. 2 prior to the
date of prepayment.
1. Prepayment in Full
City of Azusa October 24, 2011
IA No. 2 of CFD No. 2005-1(Rosedale) Page 18
The obligation of an Assessor's Parcel to pay the Special Tax A may be prepaid and
permanently satisfied as described herein; provided that a prepayment may be made only
for Assessor's Parcels of Developed Property or Undeveloped Property for which a
building permit has been issued, and 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 Special Tax A 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 Assessors Parcel. The CFD Administrator may charge a reasonable fee for
providing this service. Prepayment must be made not less than 45 days prior to the next
occurring date that notice of redemption of Bonds from the proceeds of such prepayment
may be given to the Trustee pursuant to the Indenture.
The Prepayment Amount (defined below) shall be calculated as summarized below
(capitalized terms as defined below):
Bond Redemption Amount
plus
Redemption Premium
plus
Future Facilities Amount
plus
Defeasance Amount
plus
Administrative Fees and Expenses
less
Reserve Fund Credit
less
Capitalized Interest Credit
Total: equals
Prepayment Amount
As of the proposed date of prepayment, the Prepayment Amount (defined below) shall be
calculated as follows:
Paragraph No.:
1. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel.
2. For Assessor's Parcels of Developed Property, compute the Maximum Special Tax
A. For Assessor's Parcels of Undeveloped Property for which a building permit has
been issued, compute the Maximum Special Tax A for that Assessor's Parcel as
though it was already designated as Developed Property, based upon the building
permit which has already been issued for that Assessor's Parcel.
3. Divide the Maximum Special Tax A computed pursuant to paragraph 2 by the total
estimated Maximum Special Tax A for the entire IA No. 2 based on the Developed
Property Special Tax A which could be charged in the current Fiscal Year on all
expected development through buildout of IA No. 2, excluding any Assessor's
Parcels which have been prepaid.
City of Azusa October 24, 2011
IA No. 2 of CFD No. 2005-1(Rosedale) Page 19
4. Multiply the quotient computed pursuant to paragraph 3 by the Outstanding Bonds to
compute the amount of Outstanding Bonds to be retired and prepaid (the 'Bond
Redemption Amount").
5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the
applicable redemption premium, if any, on the Outstanding Bonds to be redeemed
(the "Redemption Premium").
6. Compute the current Future Facilities Costs.
7. Multiply the quotient computed pursuant to paragraph 3 by the amount determined
pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be
prepaid (the "Future Facilities Amount").
8. 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.
9. Determine the Special Tax A levied on the Assessor's Parcel in the current Fiscal
Year which has not yet been paid.
10. Compute the minimum amount the CFD Administrator reasonably expects to derive
from the reinvestment of the Prepayment Amount less the Future Facilities Amount
and the Administrative Fees and Expenses from the date of prepayment until the
redemption date for the Outstanding Bonds to be redeemed with the prepayment.
11. Add the amounts computed pursuant to paragraphs 8 and 9 and subtract the amount
computed pursuant to paragraph 10 (the "Defeasance Amount").
12. Verify the administrative fees and expenses of IA No. 2, including the costs of
computation of the 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").
13. The reserve fund credit ("Reserve Fund Credit") shall equal the lesser of: (a) the
expected reduction in the reserve requirement (as defined in the Indenture), if any,
associate with the redemption of Outstanding Bonds as a result of the prepayment, or
(b) the amount derived by subtracting the new reserve requirement (as defined in the
Indenture) in effect after the redemption of Outstanding Bonds as a result of the
prepayment from the balance in the reserve fund on the prepayment date, but in no
event shall such amount be less than zero.
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 3 by the expected balance in the capitalized interest
City of Azusa October 24, 2011
1A No. 2 of CFD No. 2005-1 (Rosedale) Page 20
fund after such first interest and/or principal payment (the "Capitalized Interest
Credit").
15. The Special Tax A prepayment is equal to the sum of the amounts computed pursuant
to paragraphs 4, 5, 7, 11 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 4, 5,
11, 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 7 shall be deposited into the
Improvement Fund. The amount computed pursuant to paragraph 12 shall be
retained by IA No. 2.
The Special Tax A 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 A levy as determined
under paragraph 9 (above), the CFD Administrator shall remove the current Fiscal Year's
Special Tax A 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 Tax A and the
release of the Special Tax A lien on such Assessor's Parcel, and the obligation of such
Assessor's Parcel to pay the Special Tax A shall cease.
Notwithstanding the foregoing, no prepayment will be allowed unless the amount of
Maximum Special Tax A that may be levied on Taxable Property (based on expected
development at build out) after the proposed prepayment, less expected Administrative
Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal
payments on all Outstanding Bonds (excluding Bonds to be redeemed by such
prepayment and all prior prepayments) in each future Fiscal Year and such prepayment
will not impair the security of all Outstanding Bonds, as reasonably determined by the
CFD Administrator.
The Special Tax B may not be prepaid.
2. Prepayment in Part
The Special Tax A 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 Partial Prepayment Amount shall be calculated as in Section K.1; except
that a partial prepayment shall be calculated according to the following formula:
PP = [(PE -AE) x F] + AE
City of Azusa October 24, 2011
IA No. 2 of CFD No. 2005-1 (Rosedale) Page 21
These terms have the following meaning
AE = the Administrative Fees and Expenses
PP = the partial prepayment
PE = the Prepayment Amount calculated according to Section K.1
F = the percentage by which the owner of the Assessor's Parcel is partially
prepaying the Special Tax A.
The owner of any Assessor's Parcel who desires such prepayment shall notify the CFD
Administrator of such owner's intent to partially prepay the Special Tax A and the
percentage by which the Special Tax A shall be prepaid. The CFD Administrator shall
provide the owner with a statement of the amount required for the partial prepayment of
the Special Tax A for an Assessor's Parcel within thirty (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
Section K.1, and (ii) indicate in the records of IA No. 2 that there has been a partial
prepayment of the Special Tax A and that a portion of the Special Tax A with respect to
such Assessor's Parcel, equal to the outstanding percentage (1.00 - F) of the remaining
Maximum Special Tax A, shall continue to be levied on such Assessor's Parcel pursuant
to Section G.
Notwithstanding the foregoing, no partial prepayment will be allowed unless the amount
of Maximum Special Tax A that may be levied on Taxable Property (based on expected
development at build out) after the proposed prepayment, less expected Administrative
Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal
payments on all Outstanding Bonds (excluding Bonds to be redeemed by such
prepayment and all prior prepayments) in each future Fiscal Year and such partial
prepayment will not impair the security of all Outstanding Bonds, as reasonably
determined by the CFD Administrator.
3. Bond Call based on Backup Special Tax A
The Prepayment Amount for a Backup Special Tax A payment shall equal the amount
necessary to call Bonds based on steps 4, 5, 12, 13, and 14 of Section K.1. above such
that the total Special Tax A revenues available in any Fiscal Year (i.e., the Expected
Special Tax A Revenues from step 2 of Section D above for the Planning Area forwhich
the Backup Special Tax A payment is being made plus the Required Special Tax A
Revenues from all other Planning Areas as adjusted to the date of calculation and both
escalated by 2% per Fiscal Year) less anticipated annual Administrative Expenses as of
the date of calculation will be approximately equal to (but not less than)110% of the debt
service on the Outstanding Bonds during the current Fiscal Year and all future years.
From the Backup Special Tax A payment, the amounts computed pursuant to paragraphs
4, 5, 13, and 14 shall be used to retire Outstanding Bonds. The amount computed
pursuant to paragraph 12 shall be retained by IA No. 2.
The Maximum Special Tax A shall not be reduced as a result of a Backup Special Tax A
payment.
Cary of Azusa October 24, 2011
IA No. 2 of CFD No. 2005-1 (Rosedale) Page 22
L. TERM OF SPECIAL TAX
The Special Tax A, Backup Special Tax A, and One -Time Special Tax shall be levied for a
period not to exceed fifty years commencing with Fiscal Year 2012-2013. The Special Tax
B shall be levied as long as necessary to meet the Special Tax Requirement for Services.
K:\CUENTS21A7u .ctyNMcllo\cfd2005-1\RMA\IA 2 Amerced RMA\LA2_RMA (19.doc
City of Azusa October 24, 2011
IA No. 2 of CFD No. 2005-1 (Rosedale) Page 23
EXHIBIT A
PLANNING AREAS
Planning Area
Description
Planning Area 1 (GPI)
Lots 1, 2, 3, 4, 5, and 6 of
Zone 1
Tract No. 66141
Planning Area 2 (GP2)
Lots 9, 10, 11, and 12 of
Zone 1
Tract No. 66141
Planning Area 3 (GP3)
Lots 7 and 8 of
Zone 1
Tract No. 66141
Planning Area 4 (TI)
Lots 13, 14, 15, 16, 17, 18, and 19 of
Zone 1
Tract No. 66141
Planning Area 5 (Transit 2)
Assessor's Parcels 8625-005-040
Zone 2
and 8625-005-041
[Insert Planning Area Map here]
EXHIBIT B
CERTIFICATE OF REDUCTION IN SPECIAL TAXES
City of Azusa
IA No. 2 of CFD No. 2005-1
Pursuant to Section F of the Amended and Restated Rate and Method of Apportionment, the
Maximum Special Tax A for Developed Property for [certain or all] Land Use Classes within lA
No. 2 has been reduced.
2. The calculations made pursuant to Section F were based upon a Price Point Study that was
received by the CFD Administrator on
Tables 1 and 2 below shows the Maximum Special Tax A for each Land Use Class after such
reduction.
Table 1
Maximum Special Tax for Developed Property
Zone 1
Land Use
Class
Description
Residential Floor Area
Maximum Special Tau A
1
Residential Property
> 1,950 SF
[$ [ per dwelling unit
2
Residential Property
1 751 - 1.9 SF
per dwellinit unit
3
Residential Property
1,551 - 1750 SF
$ dwelling unit
4
Residential Property
1401- 1,550 SF
per dwelling unit
5
Residential Property
1,401 SF
per dw-Iliny unit
6
Non -Residential Property
NA
IS I per Acre
Table 2
Maximum Special Tax for Developed Property
Zone 2
Lam Use
Class
Description
Residential Floor Area
Maximum Spatial Tax A
1
Residential Property
> 1,300 SF
[$ ] per dwelling unit
2
Residential Property
1201 - l 300 SF
$ 1 per dwell ing trait
3
Residential Property
< 1,201 SF
is I per dwelling unit
4
Non -Residential Property
1 NA
$ 1 per Acre
Certificate of Reduction in Special Taxes
Page 2
4. Upon execution of this certificate by CFD No. 2005-1, CFD No. 2005-1 shall cause an amended
notice of Special Tax lien for IA No. 2 to be recorded reflecting the Maximum Special Tax A set
forth herein for the Assessor's Parcels listed in Attachment A. No amended notice of Special
Tax Lien shall be recorded for Assessor's Parcels listed in Attachment B (One -Time Special Tax
previously calculated).
Submitted
CFD ADMINISTRATOR
LE
Date:
By execution hereof, the undersigned acknowledges, on behalf of CFD No. 2005-1, receipt of this
certificate and modification of the Amended and Restated Rate and Method of Apportionment for
the Assessor's Parcels listed in Attachment A as set forth in this certificate.
CITY OF AZUSA CFD NO. 2005-1
M
Date as of:
[date of issuance of Bonds]
EXHIBIT C
CERTIFICATE OF NO REDUCTION IN SPECIAL TAXES
City of Azusa
IA No. 2 of CFD No. 2005-1
All calculations required pursuant to Section F of the Amended and Restated Rate and
Method of Apportionment have been made based upon a Price Point Study that was received
by the CFD Administrator on
2. The Total Tax and Assessment Obligation for all Plan Types in a Land Use Class is less than
or equal to 2.00% of the Price Point for such Plan Type.
3. The Maximum Special Tax A for Developed Property within IA No. 2 set forth in Section
C.L(a) of the Amended and Restated Rate and Method of Apportionment shall remain in
effect and not be reduced.
Submitted
CITY OF AZUSA CFD NO. 2005-1
M
Date as of:
[date of issuance of Bonds]