HomeMy WebLinkAboutResolution No. 02-C0410 0
RESOLUTION NO. 02=641
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
AZUSA ESTABLISHING COMMUNITY FACILITIES DISTRICT
NO. 2002-1 (MOUNTAIN COVE) OF THE CITY OF AZUSA,
COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AND
ESTABLISHING THE BOUNDARIES THEREOF
WHEREAS, the City Council (the "City Council") of the City of Azusa (the "City")
has heretofore adopted Resolution No. 02-C26 stating that a proposed community facilities district
to be known as "Community Facilities District No. 2002-1 (Mountain Cove) of the City of Azusa,
County of Los Angeles, State of California" (the 'District"), is proposed to be established pursuant
to Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California
Government Code, commonly known as the "Mello -Roos Community Facilities Act of 1982" (the
"Act"), and fixing the time and place for a public hearing on the establishment of the District; and
WHEREAS, the Community Facilities District is proposed to be formed for the
purposes of (a) constructing, acquiring and financing through the sale of bonds the construction and
acquisition of public facilities and (b) the satisfaction of school mitigation fees and park and recreation
mitigation fees which are necessary to meet increased demands placed upon the City as a result of the
development of the real property within the Community Facilities District (the "District Facilities")
and
WHEREAS, the District has entered into a joint community facilities agreement with
Azusa Unified School District (the "School District") pursuant to Sections 53316.2, 53316.4 and
53316.6 of the California Government Code which provide for the financing with the proceeds of the
issuance and sale of the bonds of the Community Facilities District of certain public school facilities
of the School District and the satisfaction of statutory school fees (the "School Facilities") which are
necessary for the School District to provide for the school needs of future residents of the Community
Facilities District; and
WHEREAS, notice was published and mailed to the owner of all of the property in
the District as required by law relative to the intention of the City Council to establish the District,
the levy of special taxes therein, the provision of public facilities therein and the incurring of a bonded
indebtedness by the District, and of the time and place of the public hearing; and
WHEREAS, on April 15, 2002, at the time and place specified in the published and
mailed notices, the City Council conducted a public hearing as required by law relative to the
establishment of the District, the levy of special taxes therein, the provision of public facilities therein,
and the incurring of a bonded indebtedness by the District; and
WHEREAS, prior to the commencement of the hearing there was filed with the City
Council a report (the 'Report") containing a description of the public facilities required to meet the
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needs of the District, and an estimate of the cost of financing such facilities, as required by Section
53321.5 of the California Government Code; and
WHEREAS, at the public hearing all persons desiring to be heard on all matters
pertaining to the establishment of the District, the levy of the special taxes, the provision of public
facilities therein, and the incurring of the bonded indebtedness therefor were heard, and a full and fair
hearing was held; and
WHEREAS, at the public hearing evidence was presented to the City Council on the
matters before it, and the City Council at the conclusion of the hearing was fully advised as to all
matters relating to the establishment of the District, the levy of the special taxes, the provision of
public facilities therein and the incurring of the bonded indebtedness therefor; and
WHEREAS, the City Council may therefore proceed to establish the District; and
WHEREAS, the City Clerk has advised the City Council that she has received a
statement from the Registrar of Voters of the County of Los Angeles that there are five persons
registered to vote in the territory of the District;
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY
THE CITY COUNCIL OF THE CITY OF AZUSA AS FOLLOWS:
Section 1. Findings. The City Council finds as follows:
(a) All of the preceding recitals are true and correct;
(b) On April 15, 2002, pursuant to notice thereof duty given as provided by law,
the City Council conducted a public hearing with respect to the establishment of the District, the
incurring of a bonded indebtedness by and for the District, the annual levying of specified special
taxes on the taxable property within the District to pay principal of and interest on bonds to be issued
by and for the District to finance the public facilities and other obligations which are described in
Section 3 hereof;
(c) The boundary map of the District was recorded on March 21, 2002, pursuant
to Sections 3111 and 3113 of the California Streets and Highways Code, at page 57 in Book 187 of
Maps of Assessment and Community Facilities Districts, and as Instrument No. 02-0681944, in the
official records of the County of Los Angeles, as amended by a map entitled, "Amended Boundaries
of Community Facilities District No. 2002-1 (Mountain Cove) of the City of Azusa, County of Los
Angeles, State of California," approved by the City Council of the City of Azusa on April 15, 2002
by adoption of a resolution approving and authorizing the recording of the amended map;
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(d) All prior proceedings with respect to the establishment of the District prior to
and during the hearing with respect to the establishment of the District which was conducted by the
City Council on April 15, 2002, were valid and in conformity with the requirements of the Act;
(e) No written protests were received at or prior to the time ofthe hearing, against
the establishment of the District, or the levying of the special taxes, or the incurring of a bonded
indebtedness by the District, and the special taxes have, therefore, not been eliminated by majority
protest pursuant to Section 53324 of the California Government Code;
(f) The City Council is, therefore, authorized to adopt a resolution of formation
pursuant to Section 53325.1 ofthe California Government Code forthe establishment of Community
Facilities District No. 2002-1 (Mountain Cove) of the City of Azusa, County of Los Angeles, State
of California, and the District should be established; and
(g) Twelve (12) persons have not been registered to vote within the territory of
the District for each of the 90 days preceding the close of the protest hearing on April 15, 2002,
and pursuant to Section 53326 of the California Government Code, the vote in the consolidated
special elections provided for in Section 11 hereof shall, therefore, be by the landowners of the
District whose property would be subject to the special taxes if they were levied at the time of the
election, and each landowner shall have one vote for each acre, or portion thereof, which he or she
owns within the District which would be subject to the proposed special taxes if they were levied at
the time of the election.
Section 2. Establishment of District. Community Facilities District No. 2002-1
(Mountain Cove) of the City of Azusa, County of Los Angeles, State of California, is hereby
established. The boundaries of the District are set forth and shown on the map entitled "Amended
Boundaries of Community Facilities District No. 2002-1 (Mountain Cove) of the City of Azusa,
County of Los Angeles, State of California," which is on file with the City Clerk, and those
boundaries are hereby established.
Section 3. Types of Facilities, Incidental Expenses.
(a) The types of public facilities proposed to be provided for and financed by the
proposed community facilities district are:
(1) Water transmission, distribution and storage facilities, and sewer
system facilities
(2) Local park, recreation, and open space facilities and river bank
protection and vegetation mitigation;
(3) Street improvements, curb, gutter, sidewalks, bicycle trail, signage
and street widening;
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(4) Relocation of dry utilities;
(5) Public school facilities; and
(b) The incidental expenses which will be incurred are: (i) the cost of planning
and designing such facilities and the cost of environmental evaluations thereof, (ii) all costs associated
with the creation of the proposed community facilities district, issuance of the bonds thereof, the
determination of the amount of and collection of taxes, and the payment of taxes, and costs otherwise
incurred in order to carry out the authorized purposes of the community facilities district, and (iii) any
other expenses incidental to the construction, completion, acquisition and inspection of such facilities.
Section 4. Special Taxes. Except where funds are otherwise available, special taxes
sufficient to pay for all of the Facilities and to pay the principal of and interest on the bonds of the
District and the annual administrative expenses of the City and the District in determining,
apportioning, levying and collecting such special taxes, and in paying the principal of and interest on
such bonds and the costs of registering, exchanging and transferring such bonds, secured by the
recordation of a continuing lien against all taxable or nonexempt property in the District, shall be
annually levied within the District.
The rates and method of apportionment of special taxes to be levied on parcels of
taxable property to pay (i) the principal of and interest of the bonds of the District which may be
issued and sold to finance the design, construction and acquisition of the Facilities for the benefit of
parcels of property in the District, and (ii) to pay for such other expenses and costs as set forth in
Exhibit "A" attached hereto and by this reference made a part hereof.
The maximum amounts of special taxes which may be levied in any year on parcels
within the District which are used for private residential purposes ('Residential Parcels") are specified
in dollar amounts in Exhibit "A" hereto. Special taxes shall not be levied on any Residential Parcels
to pay the principal of and interest on the outstanding bonds of the District after the tax or fiscal year
beginning on July 1, 2002 and ending on June 30, 2042, and that fiscal year shall be the last tax year
in which special taxes shall be levied on Residential Parcels. Under no circumstance shall the special
taxes levied on any Residential Parcel 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.
The conditions under which the obligation to pay the special taxes may be.prepaid
and permanently satisfied are as set forth in Exhibit "A" hereto.
Pursuant to Section 53340 of the California Government Code, said special taxes
shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall
be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency
as is provided for ad valorem taxes.
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Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the
California Streets and Highways Code, a continuing lien to secure each levy of the special taxes shall
attach to all nonexempt real property in the District and that lien shall continue in force and effect
until the special tax obligation is prepaid and permanently satisfied and the lien cancelled in
accordance with law or until collection of the special taxes ceases. The Finance Department of the
City, 213 E. Foothill Boulevard, Azusa, CA 91702, telephone number (626) 812-5291, is designated
as the office responsible for preparing annually a current roll of special tax levy obligations by
assessor's parcel numbers, and for estimating future special tax levies pursuant to Section 53340.2
of the California Government Code.
Section 5. Exempt Property. Pursuant to Section 53340 of the California
Government Code, and except as provided in Section 53317.3 of said Code, properties of entities of
the state, federal, and local governments shall be exempt from the levy of special taxes for the
payment of the principal of and interest on the bonds of the District. In the event that a portion of the
property within the District shall for any reason be or become exempt, wholly or partially, from the
apportionment and levy of the special taxes pursuant to Exhibit "A" hereto, the City Council shall,
on behalf of the District, increase the amount of special taxes to the extent necessary and permitted
by law and these proceedings to be levied upon the remaining property within the District which is
not exempt in order to provide the required debt service payments on any outstanding bonds of the
District, or to prevent the District from defaulting on any of its other obligations or liabilities.
Section 6. Necessity. The Facilities are necessary to meet increased demands placed
upon the City as a result of new development occurring within the boundaries of the District.
Section 7. Report. The Report is hereby approved and is made a part of the record
of the public hearing regarding the formation of the District, and is ordered to be kept on file with the
City Clerk as part of the transcript of these proceedings.
Section 8. Repayment of Funds Advanced or Work -in -Kind. Pursuant to Section
53314.9 of the California Government Code, the City Council proposes to accept advances of funds
or work -in-kind from private persons or private entities and to provide, by resolution, for the use of
those funds or that work -in-kind for any authorized purpose, including but not limited to, paying any
costs incurred by the City in creating the District, and to enter into agreements, by resolution, with
the persons or entities advancing the funds or work -in-kind to repay funds advanced, or to reimburse
the persons or entities for the value, or cost, whichever is less, of the work -in-kind, as determined by
the City Council.
Section 9. Prohibition of Owner Contracts. Pursuant to Section 53329.5 of the
California Government Code, the City Council finds that the public interest will not be served by
allowing the owners of property within the District to enter into a contract in accordance with
subdivision (a) of that section, and that such owners shall not be permitted to elect to perform the
work and enter into a written contract with the City Council for the construction of the Facilities
pursuant to Section 53329.5 of the California Government Code.
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Section 10. Description of Voting Procedures. The voting procedures to be
followed in conducting the consolidated special elections on (i) the proposition of the District
incurring a bonded indebtedness in an amount not to exceed $11,000,000, (ii) the proposition with
respect to the levy of special taxes on taxable property within the District to pay the principal of and
interest on the bonds thereof, and (iii) the proposition with respect to the establishment of an
appropriations limit for the District in the amount of $2,000,000 (the "Consolidated Special
Elections") shall be as follows:
(a) Pursuant to Section 53326 of the California Government Code, since at the
time of the close of the public hearing, and for at least the preceding 90 days, less than 12 persons
have been registered to vote within the territory of the District, the vote in the Consolidated Special
Elections will be by the landowners of the District, with each landowner of record at the close of the
public hearing having one vote for each acre or portion of an acre of land that he or she owns within
the District, and the Consolidated Special Elections shall be conducted by the City Clerk (the "City
Clerk").
(b) The Consolidated Special Elections shall be held on the earliest date,
following the adoption by the City Council of this resolution, the resolution determining the necessity
for the District to incur a bonded indebtedness pursuant to Section 53351 of the California
Government Code, and a resolution pursuant to Section 53326 submitting the propositions with
respect to (i) the levy of special taxes to pay the principal of and interest on the bonds of the District,
and (ii) the establishing of an appropriations limit therefor to the qualified electors of the District,
upon which such elections can be held pursuant to Section 53326 which may be selected by the City
Council, or such earlier date as the owners of land within the District and the City Clerk agree and
concur is acceptable.
(c) Pursuant to Section 53326, the Consolidated Special Elections may be held
earlier than 90 days following the close of the public hearing if the qualified electors of the District
waive the time limits for conducting the elections set forth in Section 53326 by unanimous written
consent and the City Clerk concurs in such earlier election date as shall be consented to by the
qualified electors.
(d) Pursuant to Section 53326, ballots for the Consolidated Special Elections
shall be distributed to the qualified electors by the City Clerk by mail with return postage prepaid, or
by personal service.
(e) Pursuant to applicable sections of the California Elections Code governing
the conduct of mail ballot elections of cities, and specifically Division 4 (commencing with Section
4000) of the California Elections Code with respect to elections conducted by mail, the City Clerk
shall mail or deliver to each qualified elector an official ballot in a form specified by the City Council
in the resolutions calling and consolidating the Consolidated Special Elections, and shall also mail or
deliver to all such qualified electors a ballot pamphlet and instructions to voter, including a sample
ballot identical in form to the official ballot but identified as a sample ballot, a statement pursuant to
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Section 9401 of that Code, an impartial analysis by the City Attorney pursuant to Section 9280 of
said Code with respect to the ballot propositions contained in the official ballot, arguments and
rebuttals, if any, pursuant to Sections 9281 to 9287, inclusive, and 9295 of that Code, a return
identification envelope with prepaid postage thereon addressed to the City Clerk for the return of
voted official ballots, and a copy of this resolution and the exhibits hereto; provided, however, that
such statement, analysis and arguments may be waived with the unanimous consent of all the land-
owners who are qualified electors and shall be so stated in the resolution adopted by the City Council
calling the Consolidated Special Elections. Such statement, impartial analysis and arguments, if any,
shall be prepared by the City Attorney.
(f) The official ballot to be mailed or delivered by the City Clerk to each
landowner -voter shall have printed or typed thereon the name ofthe landowner -voter and the number
of votes to be voted by the landowner -voter and shall have appended to it a certification to be signed
by the person voting the official ballot which shall certify that the person signing the certification is
the person who voted the official ballot, and ifthe landowner -voter is other than a natural person, that
he or she is an officer of or other person affiliated with the landowner -voter entitled to vote such
official ballot, that he or she has been authorized to vote such official ballot on behalf of the
landowner -voter, that in voting such official ballot it was his or her intent, as well as the intent of the
landowner -voter, to vote all votes to which the landowner -voter is entitled based on its land
ownership on the propositions set forth in the official ballot as marked thereon in the voting square
opposite each such proposition, and further certifying as to the acreage of the landowner -voter's land
ownership within the District.
(g) The return identification envelope delivered by the City Clerk to each
landowner -voter shall have printed or typed thereon the following: (i) the name of the landowner,
(ii) the address of the landowner, (iii) a declaration under penalty of perjury stating that the voter is
the landowner or the authorized representative of the landowner entitled to vote the enclosed ballot
and is the person whose name appears on the identification envelope, (iv) the printed name and
signature of the voter, (v) the address of the voter, (vi) the date of signing and place of execution of
the declaration, and (vii) a notice that the envelope contains an official ballot and is to be opened only
by the City Clerk.
(h) The instruction to voter form to be mailed or delivered by the City Clerk to
the landowner -voters shall inform them that the official ballots shall be returned to the City Clerk
properly voted as provided thereon and with the certification appended thereto properly completed
and signed in the sealed return identification envelope with the certification thereon completed and
signed and all other information to be inserted thereon properly inserted by the hour on the date of
the election specified by the City Council in the resolutions calling the Consolidated Special Elections
for the receipt of voted ballots; provided that if all qualified voters have voted, the elections shall be
closed with the concurrence of the City Clerk.
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(i) Upon receipt of the return identification envelopes which are returned prior
to the voting deadline on the date of the elections, the City Clerk shall canvass the votes cast in the
Consolidated Special Elections, and shall file a statement with the City Council as to the results of
such canvass and the election on each proposition set forth in the official ballot.
PASSED, APPROVED AND ADOPTFR 13�h day of
Cristina Cruz -Madrid
Mayor
Vera Mendoza
City Clerk
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CERTIFICATION
I, Vera Mendoza, City Clerk of the City of Corona do hereby certify that the
foregoing resolution was adopted by the City Council of the City of Corona at a regular meeting
thereof held on the 15th day of April, 2002, by the following vote of the Council:
AYES: HARDISON, ROCHA, CHAGNON, MADRID
NOES: NONE
ABSENT: STANFORD
ABSTAINED: NONE
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal
of the City of Azusa this 15 day of APRIL. , 2002.
Vera Mendoza, City Clerk
(SEAL)
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RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 2002-1
OF THE CITY OF AZUSA
(MOUNTAIN COVE)
A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels in Community
Facilities District No. 2002-1 of the City of Azusa (Mountain Cove) ("CFD No. 2002-1") and
collected each Fiscal Year commencing in Fiscal Year 2002-03, in an amount determined by the City
Council of the City of Azusa, through the application of the Rate and Method of Apportionment as
described below. All of the real property in CFD No. 2002-1, 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 meanings:
"Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's
Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area
shown on the applicable final map, parcel map, condominium plan, 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 CFD No. 2002-1: 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, CFD No. 2002-1 or any designee thereof of complying with arbitrage
rebate requirements; the costs to the City, CFD No. 2002-1 or any designee thereof of
complying with City, CFD No. 2002-1 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; the costs of the City, CFD No. 2002-1 or any designee
thereof related to an appeal of the Special Tax; the costs associated with the release of funds
from any escrow account; and the City's annual administration fees and third party expenses.
Administrative Expenses shall also include amounts estimated or advanced by the City or
CFD No. 2002-1 for any other administrative purposes of CFD No. 2002-1, including
attorney's fees and other costs related to commencing and pursuing to completion any
foreclosure of delinquent Special Taxes.
"Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an
assigned Assessor's parcel number.
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"Assessor's Parcel Map" means an official map of the County Assessor of the County
designating parcels by Assessor's parcel number.
"Assigned Special Tax" means the Special Tax for each Land Use Class of Developed
Property, as determined in accordance with Section C below.
"Backup Special Tax" means the Special Tax applicable to each Assessor's Parcel of
Developed Property, as determined in accordance with Section C 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 CFD No. 2002-1 under the Act.
"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. 2002-1" means Community Facilities District No. 2002-1 of the City of Azusa
(Mountain Cove).
"City" means the City of Azusa.
"Council" means the City Council of the City.
"County" means the County of Los Angeles.
"Developed Property" means for each Fiscal Year, all Taxable Property, exclusive of
Taxable Public Property, Taxable Property Owner Association Property, and Taxable
River/Creek Property, for which a building permit for new construction was issued after
January 1, 2001 and prior to March 1 of the prior Fiscal Year.
"Fiscal Year" means the period starting July 1 and ending on the following June 30.
"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 below.
"Maximum Special Tax" means the Maximum Special Tax, determined in accordance with
Section C below, that can be levied in any Fiscal Year on any Assessor's Parcel.
"Non -Residential Property" means all Assessor's Parcels of Developed Property for which
a building permit was issued for a non-residential use.
"Outstanding Bonds" means all Bonds which are deemed to be outstanding under the
Indenture.
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"Proportionately" means, for Developed Property, that the ratio of the actual Special Tax
levy to the Assigned Special Tax is equal for all Assessor's Parcels of Developed Property.
For Undeveloped Property, "Proportionately" means that the ratio of the actual Special Tax
levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor's Parcels of
Undeveloped Property.
"Property Owner Association Property means, for each Fiscal Year, any property within
the boundaries of CFD No. 2002-1, with the exception of River/Creek Property, that was
owned by a property owner association, including any master or sub -association, as of
January 1 of the prior Fiscal Year.
"Public Property" means, for each Fiscal Year, any property within CFD No. 2002-1, with
the exception of River/Creek Property, that is owned by, irrevocably offered for dedication
to, or dedicated to the federal government, the State, the County, the City or any other public
agency as of June 30 of the prior 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. To ensure that property is classified
as Public Property in the first Fiscal Year after it is acquired by, irrevocably offered for
dedication to, or dedicated to a public agency, the property owner shall notify the CFD
Administrator in writing of such acquisition, offer, or dedication not later than June 30 of the
Fiscal Year in which the acquisition, offer, or dedication occurred.
"Residential Floor Area" means all of the square footage of living area within the
perimeter of a residential structure, not including any carport, walkway, garage, overhang,
patio, enclosed patio, or similar area. The determination of Residential Floor Area shall be
made by reference to the building permit(s) issued for such Assessor's Parcel.
"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.
"River/Creek Property" means up to 24.789 Acres within the San Gabriel River and
Roberts Creek, as identified on Attachment A to this Rate and Method of Apportionment, or
as such area is modified pursuant to a final map for such property.
"Special Tax" 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.
"Special Tax Requirement means that amount required in any Fiscal Year for CFD No.
2002-1 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 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.
CFD No. 2002-1 facilities eligible under the Act to the extend that inclusion of such amount
does not increase the Special Tax levy on Undeveloped Property; (vi) pay for reasonably
anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied
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CFD No. 2002-1 (Mountain Cove) Page 3
C.
in the previous Fiscal Year; less (vii) a credit for funds available to reduce the annual Special
Tax levy, as determined by the CFD Administrator pursuant to the Indenture.
"State" means the State of California.
"Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No.
2002-1 which are not exempt from the Special Tax pursuant to law or Section E below.
"Taxable Property Owner Association Property means all Assessor's Parcels of
Property Owner Association Property that are not exempt pursuant to Section E below.
"Taxable Public Property" means all Assessor's Parcels of Public Property that are not
exempt pursuant to Section E below.
"Taxable River/Creek Property" means all Assessor's Parcels of River/Creek Property
that are not exempt pursuant to Section E below.
"Trustee" means the trustee or fiscal agent under the Indenture.
"Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as
Developed Property, Taxable Public Property, Taxable Property Owner Association Property,
or Taxable River/Creek Property.
ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, all Taxable Property within CFD No. 2002-1 shall be classified as
Developed Property, Taxable Public Property, Taxable Property Owner Association Property,
Taxable River/Creek Property, or Undeveloped Property, and shall be subject to Special
Taxes in accordance with the rate and method of apportionment determined pursuant to
Sections C and D below.
MAXIMUM SPECIAL TAX
Developed Property
a. Maximum Special Tax
The Maximum Special Tax for each Assessor's Parcel classified as
Developed Property shall be the greater of (i) the amount derived by
application of the Assigned Special Tax or (ii) the amount derived by
application of the Backup Special Tax.
b. Assigned Special Tax
The Fiscal Year 2002-03 Assigned Special Tax for each Land Use Class is
shown below in Table 1.
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TABLE 1
Fiscal Year 2002-03
Assigned Special Taxes for Developed Property in
Community Facilities District No. 2002-1
1 Residential Property >_ 3,100 s.f. $2,562.66 per unit
2 Residential Property 2,500 — 3,099 s.f. $2,097.29 per unit
3 Residential Property < 2,500 s.f. $1,891.66 per unit
4 Non -Residential Property NA $16,616 per Acre
C. Backup Special Tax
The Fiscal Year 2002-03 Backup Special Tax for an Assessor's Parcel of
Developed Property shall equal $16,616 per Acre.
d. Increase in the Assigned Special Tax and Backup Special Tax
On each July 1, commencing on July 1, 2003, the Assigned Special Tax and
the Backup Special Tax shall be increased by an amount equal to two percent
(2%) of the amount in effect for the previous Fiscal Year.
2. Undeveloped Property, Taxable Public Property, Taxable Property Owner
Association Property, and Taxable River/Creek Property
a. Maximum Special Tax
The Fiscal Year 2002-03 Maximum Special Tax for Undeveloped Property,
Taxable Public Property, Taxable Property Owner Association Property, and
Taxable River/Creek Property shall be $16,616 per Acre.
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CFD N�1
2-1 (Mountain Cove)Page 5
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b. Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2003, the Maximum Special Tax for
Undeveloped Property, Taxable Public Property, Taxable Property Owner
Association Property, and Taxable River/Creek Property shall be increased by
an amount equal to two percent (2%) of the amount in effect for the previous
Fiscal Year.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2002-03 and for each following Fiscal Year, the Council shall
determine the Special Tax Requirement and shall levy the Special Tax until the amount of
Special Taxes equal 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 at up to 100% of the applicable Assigned Special Tax;
Second: If additional monies are needed to satisfy the Special Tax Requirement after the
fust step has been completed, the Special Tax shall be levied Proportionately on each
Assessor's Parcel of Undeveloped Property at up to 100% of the Maximum Special Tax for
Undeveloped Property;
Third: If additional monies are needed to satisfy the Special Tax Requirement after the first
two steps have been completed, then the levy of the Special Tax on each Assessor's Parcel of
Developed Property whose Maximum Special Tax is determined through the application of
the Backup Special Tax shall be increased in equal percentages from the Assigned Special
Tax up to the Maximum Special Tax for each such Assessor's Parcel;
Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the first
three steps have been completed, then the Special Tax shall be levied Proportionately on each
Assessor's Parcel of Taxable Property Owner Association Property at up to the Maximum
Special Tax for Taxable Property Owner Association Property; and
Fifth: If additional monies are needed to satisfy the Special Tax Requirement after the first
four steps have been completed, then the Special Tax shall be levied Proportionately on each
Assessor's Parcel of Taxable Public Property and Taxable River/Creek Property at up to the
Maximum Special Tax for Taxable Public Property and Taxable River/Creek Property.
Notwithstanding the above, under no circumstances will the Special Tax levied against any
Assessor's Parcel of Residential Property for which an occupancy permit for private
residential use has been issued be increased by more than ten percent as a consequence of
delinquency or default by the owner of any other Assessor's Parcel within CFD No. 2002-1.
CFD No. 2002-1 (Mountain Cove) Page 6
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No Special Tax shall be levied on up to 3.38 Acres of Public Property, up to 54.497 acres of
Property Owner Association Property, and up to 24.789 Acres of River/Creek Property. Tax-
exempt status will be irrevocably assigned by the CFD Administrator in the chronological
order in which property becomes Public Property, Property Owner Association Property, or
River/Creek Property. However, should an Assessor's Parcel no longer be classified as
Property Owner Association Property, Public Property, or River/Creek Property its tax-
exempt status will be revoked.
Public Property, Property Owner Association Property, or River/Creek Property that is not
exempt from Special Taxes under this section shall be subject to the levy of the Special Tax
and shall be taxed Proportionately as part of the fourth or fifth step in Section D above, at up
to 100% of the applicable Maximum Special Tax for Taxable Public Property, Taxable
Property Owner Association Property, or Taxable River/Creek Property.
F. APPEALS AND INTERPRETATIONS
Any taxpayer 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 Taxes.
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 calculation of 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.
G. MANNER OF COLLECTION
The Special Tax will be collected in the same manner and at the same time as ordinary ad
valorem property taxes-, provided, however, that CFD No. 2002-1 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 delinquent Assessor's Parcels as permitted by the Act.
H. PREPAYMENT OF SPECIAL TAX
The following definition applies to this Section H:
"CFD Public Facilities Cost" means either $7.9 million in 2002 dollars, which shall
increase by the Construction Inflation Index on July 1, 2003, and on each July 1 thereafter, or
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CFD No. 2002-1 (Mountain Cove) Page 7
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such lower number as (i) shall be determined by the CFD Administrator as sufficient to
provide the public facilities to be provided by CFD No. 2002-1 under the authorized bonding
program for CFD No. 2002-1, 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 Rate and Method of Apportionment as described in Section D.
"Construction Fund" means an account specifically identified in the Indenture to hold
funds which are currently available for expenditure to acquire or construct public facilities
eligible under the Act.
"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 Constriction 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 Cost minus (i) public facility
costs previously paid from the Construction Fund, (ii) moneys currently on deposit in the
Construction Fund, and (iii) moneys currently on deposit in an escrow fund that are expected
to be available to finance facilities costs.
"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 CFD No. 2002-1
prior to the date of prepayment.
1. Prepayment in Full
The obligation of an Assessors Parcel to pay the Special Tax 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 Assessors Parcel at the time of prepayment. An owner of
an Assessor's Parcel intending to prepay the 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 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.
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CFD No. 2002-1 (Mountain Cove) Page 8
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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 Assigned Special Tax
and Backup Special Tax applicable 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 Assigned Special Tax and Backup Special Tax for
that Assessor's Parcel as though it was already designated as Developed Property,
based upon the building permit which has already been issued for that Assessor's
Parcel.
3. (a) Divide the Assigned Special Tax computed pursuant to paragraph 2 by the total
estimated Assigned Special Taxes for the entire CFD No. 2002-1 based on the
Developed Property Special Taxes which could be charged in the current Fiscal Year
on all expected development through buildout of CFD No. 2002-1, excluding any
Assessor's Parcels which have been prepaid, and
(b) Divide the Backup Special Tax computed pursuant to paragraph 2 by the
estimated Backup Special Taxes at buildout of CFD No. 2002-1 using the Backup
Special Tax amount for the current Fiscal Year, excluding any Assessor's Parcels
which have been prepaid.
4. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) 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").
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CFD No. 2002-1 (Mountain Cove) Page 9
6. Compute the current Future Facilities Costs
Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) 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 Taxes levied on the Assessor's Parcel in the current Fiscal
Year which have 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 CFD No. 2002-1, 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 (tbe "Administrative Fees and Expenses").
13. If reserve funds for the Outstanding Bonds, if any, are at or above 100% of the
reserve requirement (as defined in the Indenture) on the prepayment date, a reserve
fund credit shall be calculated as a reduction in the applicable reserve fund for the
Outstanding Bonds to be redeemed pursuant to the prepayment (the "Reserve Fund
Credit'). No Reserve Fund Credit shall be granted if reserve funds are below 100%
of the reserve requirement.
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 larger
quotient computed pursuant to paragraph 3(a) or 3(b) by the expected balance in the
capitalized interest fund after such fust interest and/or principal payment (the
"Capitalized Interest Credit").
15. The Special Tax 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.
CFD No. 2002-1 (Moun(ain Cove) Page 10
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The amount computed pursuant to paragraph 7 shall be deposited into the
construction fund. The amount computed pursuant to paragraph 12 shall be retained
by CFD No. 2002-1.
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
paragraph 9 (above), the CFD Administrator shall remove the current Fiscal Year's Special
Tax levy for such Assessor's Parcel from the County tax rolls. With respect to any
Assessor's Parcel that is prepaid, the 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
Special Tax lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to
pay the Special Tax shall cease.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the
amount of Assigned Special Taxes that may be levied on Taxable Property within CFD No.
2002-1 both 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 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=PExF.
These terms have the following meaning:
PP = the partial prepayment
PE = the Prepayment Amount calculated according to Section H.1
F= the percentage by which the owner of the Assessor's Parcel(s) is
partially prepaying the Special Tax.
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 and the
percentage by which the Special Tax 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 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 H.1, and (ii) indicate in the records of CFD No.
CFD No. 2002-1 (Mountain Cove) Page 11
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2002-1 that there has been a partial prepayment of the Special Tax and that a portion
of the Special Tax with respect to such Assessor's Parcel, equal to the outstanding
percentage (1.00 - F) of the remaining Maximum Special Tax, shall continue to be
levied on such Assessor's Parcel pursuant to Section D.
I. TERM OF SPECIAL TAX
The Special Tax shall be levied as long as necessary to meet the Special Tax Requirement,
but in no event shall it be levied for more than forty years commencing with Fiscal Year
2002-03.
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CFD No. 2002-1 (Mountain Cove) Page 12
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Attachment A
River/Creek Property
0
GRAPHIC SCALE
m e Ia ae ea lem
( IN rnT)
1 Imh - Eea R
•
SAN
258,916 SO. FT.
5.944 AC.
Y�
FS�
Sn'
1B� 40� 4 PG
RIVER AND CREEK AREAS
MOUNTAIN COVE, AZUSA
NTLM OEW.GREMT MEAS
Ae R.
®TTUS bA A A660CTAT6S
1• Y 1 Y[ I• L.
Y IIT YYti Y� •' IY� Y �� Yv
23,667 SQ. FT.
- 0.543 AC.
SHEET 1 OF 1
WO 252-30X
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