HomeMy WebLinkAboutResolution No. 06-C023• 0
RESOLUTION NO. 06-C23
RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE
CITY OF AZUSA WITH RESPECT TO ESTABLISHMENT OF
PROPOSED CITY OF AZUSA COMMUNITY FACILITIES DISTRICT
NO. 2005-1 (ROSEDALE) AND THE ESTABLISHMENT OF
IMPROVEMENT AREAS THEREIN
WHEREAS, the City Council (the "City Council") of the City of Azusa may, by its own
initiative, institute proceedings for the establishment of a community facilities district 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"), for the purposes of constructing and financing through the construction,
acquisition, furnishing and equipping of public facilities to be owned by the City and other
public agencies and certain other services to be provided by the City for police maintenance, fire
protection and suppression, park, parkway and open space maintenance and other services which
are necessary to meet increased demands placed upon the City as a result of the development of
said real property; and
WHEREAS, within each improvement area, the City Council desires to levy special
taxes to finance police protection, fire protection and suppression, park, parkway and open space
maintenance and other services and levy special taxes and issue bonds of the proposed
community facilities district, the proceeds of which will be used to (a) pay for new services
demanded by new development within the proposed community facilities district that are
permitted in the Act and are listed in Exhibit B hereto; (b) finance the cost of acquisition,
construction, furnishing equipping and maintenance of public facilities listed in Exhibit B; and
(c) paying the incidental expenses associated with the creation of the proposed community
facilities district, issuance of bonds thereof, fund a reserve fund for the bonds, the payment of
costs of issuance of the bonds, the determination of the amount and collection of the special
taxes, and the payment of special taxes, and costs otherwise incurred in order to carry out the
authorized purposes of the proposed community facilities district; and
WHEREAS, the bonds of each improvement area will be repaid from special taxes to be
levied on the real property within the applicable improvement area of the proposed community
facilities district, as more fully described herein;
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of
Azusa, the following:
Section 1. Findings. The City Council finds that the foregoing recitals are true and
correct;
Section 2. Proposed District. A community facilities district is proposed to be
established under the terms of the Act. The name proposed for the community facilities district
is "City of Azusa Community Facilities District No. 2005-1 (Rosedale), County of Los Angeles,
State of California" (the "District"). It is proposed that the District contain two improvement
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areas to be designated as "Improvement Area No. 1 of the City of Azusa Community Facilities
District No. 2005-1 (Rosedale)" and "Improvement Area No. 2 of the City of Azusa Community
Facilities District No. 2005-1 (Rosedale)."
Section 3. Description and Map of Boundaries. The boundaries of the proposed
community facilities district, together with the improvement areas, are described in Exhibit "A"
attached hereto, and are also shown on the map entitled 'Proposed Boundaries of City of Azusa
Community Facilities District No. 2005-1 (Rosedale), County of Los Angeles, State of
California," which is on file with the City Clerk. Said map is approved and, pursuant to Section
3110 of the California Streets and Highways Code, the City Clerk shall, after conforming with
the other requirements of Section 3111 of said Code, file the original of said map in her office,
and not later than ten (10) days prior to the date of the public hearing set forth in Section 8 hereof
shall record a copy of said boundary map with the County Recorder of the County of Los
Angeles.
Section 4., Types of Facilities; Incidental Expenses. The types of public facilities and
services proposed to be provided within and financed by each of Improvement Area No. 1 and
Improvement Area No. 2 the proposed community facilities district are set forth on Exhibit "B"
attached hereto and incorporated herein.
Section 5. Special Taxes. Except where funds are otherwise available, special taxes
in each improvement area sufficient to pay costs for additional services, to pay directly for the
facilities described in Exhibit B, and to pay the principal of and interest on the bonds of the
respective improvement area of the proposed community facilities district and the annual
administrative expenses of the City and the proposed community facilities. 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 proposed community facilities district, and maintaining a reserve fund for such bonds, and
paying any amounts that must be paid to the United States in order to preserve the tax-exempt
status of such bonds shall be annually levied within the proposed community facilities district.
The rates and method of apportionment of said special taxes for each of Improvement Area No. 1
and Improvement Area No. 2 shall be as set forth in Exhibit "C" attached hereto and by this
reference made a part hereof.
Section 6. Exempt Properties. Pursuant to Section 53340 of the California
Government Code, properties of entities of the state, federal, and local governments not subject
to a leasehold interest shall be exempt from the levy of special taxes for the payment of the
principal of and interest on the bonds of the proposed community facilities district.
Section 7. Necessity. The City .Council finds that the proposed public facilities
described in Section 4 hereof are necessary to meet increased demands placed upon the City as a
result of new development occurring within the boundaries of the proposed community facilities
district.
Section 8. Hearing. A public hearing on the establishment of the proposed
community facilities district shall be held at 7:30 p.m., or as soon thereafter as the matter may be
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heard, on June 5, 2006, in the Azusa Auditorium at 213 East Foothill Boulevard, Azusa,
California.
Section 9. Notice. The City Clerk shall publish a notice of the time and place of said
hearing as required by Section 53322 of the California Government Code, and shall also give
notice of the time and place of said hearing by fust -class mail to each registered voter and to
each landowner within the proposed community facilities district as prescribed by Section
53322.4 of said Code. Said notice shall be published at least seven (7) days and mailed at least
fifteen (15) days before the date of the hearing, and shall contain the information required by
said Seciion 53322.
Section 10. Reports. The officers of the City who will be responsible for providing
the proposed types of public facilities and services to be provided within and financed by the
proposed community facilities district, if it is established, shall study the proposed district, and,
at or before the time of said hearing, file a report with the City Council containing a brief
description of the public facilities by type which will in their opinion be required to adequately
meet the needs of the proposed community facilities district and their estimate of the fair and
reasonable cost of providing those public facilities and the incidental expenses to be incurred in
connection therewith. All such reports shall be made a part of the record of the hearing to be
held pursuant to Section 8 hereof.
Section 11. Annexation of Territory. Other property within the boundaries of the City
may be annexed into the Community Facilities District upon the condition that parcels within
that territory may be annexed only with the unanimous approval of the owner or owners of each
parcel at the time that parcel or those parcels are annexed.
Section 12. 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 community facilities district and to enter
into an agreement by resolution, with the person or entity advancing funds or work -in-kind to
repay funds advanced, or to reimburse the person or entity for the value or cost, whichever is
less, of the work -in-kind, as determined by the. City Council.
Section 13. Description of Voting Procedures. The voting procedures to be followed
in conducting the consolidated special elections on (i) the proposition of the proposed
community facilities district incurring a bonded indebtedness for each of Improvement Area
No. 1 and Improvement Area No. 2 of the District in an amount not to exceed $110,000,000
within the District, $80,000,000 within Improvement Area No. 1 and $30,000,000 within
Improvement Area No. 2 (ii) the proposition with respect to the levy of special taxes on the land
within each of Improvement Area No. 1 and Improvement Area No. 2 of the community
facilities district to pay the principal of and interest on the bonds thereof and the special taxes to
pay for additional services and to pay directly for facilities listed in Exhibit B, and (iii) the
proposition with respect to the establishment of an appropriations limit for each of Improvement
Area No. 1 and Improvement Area No. 1 of the community facilities district in the amount of
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$15,000,000 each, if the community facilities district is established and such consolidated special
elections (the "consolidated special elections") are held, shall be as follows:
(a) If at least twelve (12) persons have been registered to vote within
the territory of either improvement area of the proposed community facilities district for
each of the ninety (90) days preceding the close of the public or protest hearing (the
"protest hearing"), the vote in the consolidated special elections shall be by the registered
voters of the applicable improvement area of the community facilities district with each
voter having one vote. In that event, the consolidated special elections shall be conducted
by the City Clerk, and shall be held on a date selected by the City Council in
conformance with the provisions of Section 53326 of the California Government Code
and pursuant to the provisions of the California Elections Code governing elections of
cities, insofar as they may be applicable, and pursuant to said Section 53326 the ballots
for the consolidated special elections shall be distributed to the qualified electors of the
applicable improvement area of the community facilities district by mail with return
postage prepaid or by personal service, and the consolidated special elections shall be
conducted as a mail ballot election.
(b) If twelve (12) persons have not been registered to vote within the
territory of an improvement area of the community facilities district for each of the ninety
(90) days preceding the close of the protest hearing, and pursuant to Section 53326 of the
California Government Code, the vote is therefore to be by the landowners of the
applicable improvement area of the community facilities district, with each landowner
within the improvement area of record at the close of the protest hearing having one vote
for each acre or portion of an acre of land that he or she owns within the improvement
area of the community facilities district, the consolidated special elections shall be
conducted by the City Clerk pursuant to Section 53326 of the California Government
Code.
Section 14. Tender of Bonds. This City Council hereby reserves the right, on behalf
of the proposed community facilities district to accept tenders of bonds in full or partial payment
of special taxes to be levied within any improvement area of the proposed community facilities
district pursuant to the Act.
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The procedures for conducting the consolidated special elections, if they are held, may be
determined as the City Council may determine to be necessary or desirable by a resolution
subsequently adopted by the City Council.
PASSED, APPROVED AND ADOPTED this 17' day of April, 2006.
;: It/
Diane Chagnon, Mayor
ATTEST
Vera Mendoza, City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA )
I, Vera Mendoza, City Clerk of the City of Azusa, hereby certify that the foregoing resolution
No. 06-C23, was duly adopted by the City Council of the City of Azusa at a regular meeting
thereof held on the 17th day of April, 2006, by the following vote of the Council:
AYES: COUNCILMEMBERS: HARDISON, ROCHA, HANKS, CHAGNON
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: CARRILLO
Vera Mendoza, City Clerk
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EXHIBIT A
LEGAL DESCRIPTION
CITY OF AZUSA
COMMUNITY FACILITIES DISTRICT NO. 2005-1
(ROSEDALE)
COUNTY OF LOS ANGELES
City of Azusa Community Facilities District No. 2005-1 (Rosedale) shall consist of
Assessor Parcel Numbers:
8608-003-001
8608-003-002
8608-003-003
8608-003-005
8608-003-006
8608-003-903
8608-003-904
8625-001-001
8625-001-003
8625-004-129
8625-004-130
8625-005-014
8625-005-018
8625-005-019
8625-008-001
8625-008-005
8625-009-011
8625-009-012
8625-010-008
8625-029-005
8625-029-006
8684-022-012
8684-024-041
8684-024-042
8684-024-043
8684-024-902
Improvement Area No. 1 of City of Azusa Community Facilities District No. 2005-1
(Rosedale) shall consist of Lots I — 20, 22 — 37, 40 and 45 of Tract No. 062150.
Improvement Area No. 2 of City of Azusa Community Facilities District No. 2005-1
(Rosedale) shall consist of Lots 42 — 44 and 46 — 49 of Tract No. 062150.
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SHEET 1 OF 2
CITY OF AZUSA
COMMUNITY FACILITIES DISTRICT NO. 2005-1
(ROSEDALE)
COUNTY OF LOS ANGELES
STATE OF CALIFORNIA
1 ) Filed in the office of the City
Clerk of the City of Azusa this
_ day of , 2006.
Vera Mendoza
City Clerk, City of Azusa
Fiscal Year 2005-06 Assessor Parcel
Numbers within CFD No. 2005-1 Boundaries:
8608-003-001
8608-003-002
8608-003-003
8608-003-005
8608-003-006
8608-003-903
8608-003-904
-001-001 (portion)
-001-002 (portion)
-001-003 (portion)
-004-129 (portion)
-004-130 (portion)
-005-014' (portion)
-oo5-018 (portion)
8625-005-019
8625-008-o01
8625-008-005
8625-009-011
8625-009-012 (per
8625-010-008 (por
8625-029-005 (por
8625-029-006 (por
8684-022-012 (par
8684-024-041 (por
8684-024=042 (por
8684-024-043 (OOr
(2) I hereby certify that the within map
showing the boundaries of City of
Azusa Community Facilities District
No. 2005-1 (Rosedale), County of Los
Angeles,,State of California, was
approved by the City Council of the
City of Azusa at a regular meeting
thereof, held on this day
of , 2006, by its
Resolution No.
Vera Mendoza
City Clerk, City Of Azusa
Prepared by David Tauniq h Associates. Inc
(3) Filed this _ day of
2006, at the hour of o'clock
_m, in Book Of Maps of
Assessment and Community Facilities
Districts at•Page and as
Instrument No. in
the office of the County Recorder it
the County of Los Angeles, State of
California.
Conny 8. .McCormack
Registrar-Recorder/County Clerk,.
County of Los Angeles
By
Deputy
Fee
0
L
SHEET 2 OF 2 BOUNDARIES OF
CITY OF AZUSA
COMMUNITY FACILITIES DISTRICT NO. 2005-1
(ROSEDALE)
I
� COUNTY OF LOS ANGELES
STATE OF CALIFORNIA
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LEGEND
Boundaries of City of Axusa
.. ...as . COmeunity Facilities District
No. 2006-1 (Rosedale(. Los
Angeles County, California
Us Lot Numbers of Tract 082150
Improvement Area No. 1 and Zone 1
Lots from Tract No. 062150:
1, 3 through 7, 9 through 10, 12,
14 through 19, 23 through 37.
Improvement Area No. 1 and Zone 2
Lots from Tract No. 062150:
8, 13, 20, 22, 40, 45.
Improvement Area No. 2 and Zone 1 ��
Lots from Tract No. 062150:
ll
42, 43, 44, 46, 47, 48.
Improvement Area No. 2 and Zone 2
Lots from Tract No. 062150:
49.
Reference is hereby made to the Assessor mega of the
County of Los Angeles and to Tract Yap No. 062160
recorded on December 7, 2005 with the Los Angeles
County Regl8trer-Recorder in Book 1311 and at P89e8
28 through 50.1or a description of the lines and
dimensions of these Parcels.
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CITY OF AZUSA
COMMUNITY FACILITIES DISTRICT NO. 2005-1
(ROSEDALE)
LIST OF FACILITIES AND SERVICES
Facilities authorized to be financed by each of Improvement Area No. I and
Improvement Area No. 2 of City of Azusa Community Facilities District No. 2005-1 (Rosedale)
include all of the following:
City of Azusa
(a) Street and bridge improvements including costs of condemnation, removal,
demolition, grading, paving, curbs and gutters, sidewalks, street lights, parkways, medians and
landscaping related thereto;
(b) Storm drains, sewer, water reservoirs, drainage channels and pumping facilities;
(c) Park improvements including costs of acquisition and construction on parks,
furnishings and equipment (including landscaping);
(d) In -tract improvements;
(e) Dry utility improvements;
(f) Site grading and excavation/clearing and grubbing;
(g) Street signalization and signage, including traffic mitigation fees;
(h) Land, rights-of-way and easements necessary for any of the facilities specified in
paragraphs (a) through (g) above;
(i) Plan check and inspection fees;
0) Construction management fee in an amount not to exceed five percent (5%) of the
total cost of improvement; and
(k) The incidental expenses which will be incurred are: (i) the cost of engineering,
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, 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, acquisition,
completion, and inspection of such facilities.
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Azusa Unified School District
(a) Public school facilities, including, but not limited to, permanent, temporary and
portable classrooms, and fumiture, fixtures and equipment;
(b) Park land and facilities, including landscaping;
(c) Other facilities to be owned, operated or maintained by the School District;
(d) Land, rights-of-way and easements necessary for the school facilities and joint use
park site specified in paragraphs (a) above;
(e) Plan check and inspection fees;
(f) Construction management fee in an amount not to exceed five percent (5%) of the
total cost of improvement; and
(g) The incidental expenses which will be incurred are: (i) the cost of engineering,
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, 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, acquisition,
completion, and inspection of such school facilities.
Los Angeles to Pasadena Metro Blue Line Construction Authority (dba Metro Gold Line
Foothill Extension Construction Authority)
(a) Railroad improvements, including relocation of railroad tracks;
(b) Bridge and overcrossing/undercrossing improvements;
(c) Land, rights-of-way and easements necessary for the railroad improvements
specified in paragraphs (a) above;
(d) Street, public roadways, sidewalks, curbs, gutters and appurtenant facilities;
(e) Plan check and inspection fees;
(f) Construction management fee in an amount not to exceed five percent (5%) of the
total cost of improvement; and
(g) The incidental expenses which will be incurred are: (i) the cost of engineering,
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, the payment of taxes,
and costs otherwise incurred in order to carry out the authorized purposes of the community
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facilities district, and (iii) any other expenses incidental to the construction, acquisition,
completion, and inspection of such improvements.
City of Glendora
(a) Street improvements, including costs of condemnation, removal demolition,
grading, paving curbs and gutters, sidewalks, street lights, parkways, and medians and
landscaping related thereto;
(b) Storm drains, and drainage channels including landscaping, if applicable;
(c) Water and sewer improvements;
(d) Street signalization and signage, including traffic fees;
(e) Land, rights-of-way and easements necessary for any of the facilities specified in
paragraphs (a) through (c) above;
(f) Plan check and inspection fees;
(g) Construction management fee in an amount not to exceed five percent (5%) of the
total cost of improvement; and
(h) The incidental expenses which will be incurred are: (i) the cost of engineering,
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, 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, acquisition,
completion, and inspection of such facilities.
Services authorized to be financed by the District include, but are not limited to, police
protection, fire protection and suppression services, maintenance of park, parkways and open
space, and any other services permitted to be financed pursuant to the Act.
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EXHIBIT C
CITY OF AZUSA
COMMUNITY FACILITIES DISTRICT NO. 2005-1
(ROSEDALE)
RATE AND METHOD OF APPORTIONMENT OF
THE SPECIAL TAX FOR IMPROVEMENT AREA NO.1
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RATE AND METHOD OF APPORTIONMENT FOR
IMPROVEMENT AREA NO. 1 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. 1 ("IA No. 1")ofthe City ofAzusa Community Facilities District No. 2005-1 (Rosedale)("CFD
No. 2005-1 ") and collected each Fiscal Year commencing in Fiscal Year 2006-2007, 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
real property in IA No. 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.
This Rate and Method of Apportionment employs terms defined below and terms defined in
the Rate and Method of Apportionment for Improvement Area No. 2. When necessary,
terms defined in the latter shall be distinguished from terns defined in the former by
including the words "IA No. 2" prior to the defined tern. The terns 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 IA No. 1 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. 1 or any designee thereof of complying
with arbitrage rebate requirements; the costs to the City, IA No. 1 or any designee thereof of
complying with City, IA No. 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 or the Bonds; the costs of the City, IA No. 1 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. 1; and the City's third party expenses. Administrative Expenses shall also include
amounts estimated or advanced by the City or IA No. I for any other administrative purposes
City of Azusa April 13, 2006
IA No. 1 of CFD No. 2005-1(Rosedale) Page 1
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of IA No. 1, including attorney's fees and other costs related to commencing and pursuing to
completion any foreclosure of delinquent Special Taxes.
"Assessor's Parcel" means a lot or parcel shown on an Assessor's Parcel Map with an
assigned Assessor's Parcel number.
"Assessor's Parcel Map" means an official map of the Assessor of the County designating
parcels by Assessor's Parcel number.
"Assigned Special Tax A" means the Special Tax A for each Land Use Class of Developed
Property within IA No. 1, as determined in accordance with Section C.1 below.
"Backup Special Tax A" means the Special Tax A applicable to each Assessor's Parcel of
Developed Property within IA No. 1, as determined in accordance with Section C.1 below.
"Bonds" means anybonds or other debt (as defined in Section 53317(d) of the Act), whether
in one or more series, issued by IA No. 1 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 a newly constructed residential dwelling unit.
"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.
"Final Map" means (i) a final map, or portion thereof, approved by the City pursuant to the
Subdivision Map Act (California Government Code Section 66410 et seq.) that creates
individual lots or parcels for which residential building permits may be issued, or (ii) for
City of Azusa April 13, 2006
IA No. I of CFD No. 1005-1 (Rosedale) Page 2
condominiums, a final map approved by the City and a condominium plan recorded pursuant
to California Civil Code Section 1352 creating such individual lots or parcels.
"Fiscal Year" means the period starting July 1 and ending on the following June 30.
"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 6
"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 any Assessor's Parcel within
IA No. 1.
"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 any Assessor's Parcel within
IA No. 1.
"Non -Residential Property" means all Assessor's Parcels ofDeveloped 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 (2.0%) 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.
City of Azusa April 13, 2006
IA No. 1 of CFD No. 2005-1 (Rosedale) Page 3
"Outstanding Bonds" means all Bonds which are deemed to be outstanding under the
Indenture.
"Property Owner Association Property" means, for each Fiscal Year, any Assessor's
Parcel within the boundaries of IA No. 1 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 Assigned 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. 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) anyproperty within the boundaries of 1A
No. 1 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 determination of Residential
Floor Area shall be made by reference to the building permit(s) issued for each dwelling unit.
"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 Rate and Method of Apportionment.
"Special Tax" means the Special Tax A, Special Tax B, 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.
"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.
City of Azusa Apri! 13, 2006
IA No. 1 of CFD No. 2005-1(Rosedale) _ page 4
0 0
"Special Tax Requirement for Facilities" means that amount required in any Fiscal Year
for IA No. 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 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 facilities eligible under the Act and authorized to be financed in
IA No. 1 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. 2 Administrative Expenses not funded
through the IA No. 2 Special Tax Requirement for Facilities; less (iii) a credit for funds
available to reduce the annual Special Tax B levy and the IA No. 2 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 lA No. 1
which are not exempt from the Special Tax pursuant to law or Section F below.
"Taxable Property Owner Association Property" means all Assessor's Parcels of Property
Owner Association Property that are not exempt from the Special Tax pursuant to Section F
below.
"Taxable Public Property" means all Assessor's Parcels of Public Property that are not
exempt pursuant to Section F 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 a
Certificate of Occupancy for such residential dwelling unit is expected to be issued. 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.
"Undeveloped Property" 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
City of Azusa April 13, 2006
IA No. 1 of CFD No. 2005-1 (Rosedale) Page 5
0 0
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 bythe CFD Administrator.
"Zone" means Zone 1 and/or Zone 2, as applicable.
"Zone 1" means the property identified as Zone 1(Planning Areas 4A, 4B, 5A, 5B, and 7A)
of IA No. 1, as identified on the boundary map for CFD No. 2005-1.
"Zone 2" means the property identified as Zone 2 (Village Core and Garden Court) of IA
No. 1, 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. I 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 the rate and method of apportionment
determined pursuant to Sections C and D below. Developed Property shall be classified as
Residential Property and Non -Residential Property.
C. MAXIMUM SPECIAL TAX RATE
Special Tax A
a. Developed Property
Residential Property in Zone 1 shall be assigned to Land Use Classes 1
through 10 in Table 1, and Non -Residential Property in Zone 1 shall be
assigned to Land Use Class 11 in Table 1. Residential Property in Zone 2
shall be assigned to Land Use Class 1 through 5 in Table 2, and Non -
Residential Property in Zone 2 shall be assigned to Land Use Class 6 in Table
2. The Assigned Special Tax A for Residential Property shall be based on the
Residential Floor Area of the dwelling units located on the Assessor's Parcel.
The Assigned Special Tax A for Non -Residential Property shall be based on
the Acreage of the Assessor's Parcel.
(i) Maximum Special Tax A
The Maximum Special Tax A for each Assessor's Parcel classified as
Developed Property in IA No. 1 shall be the greater of (i) the amount
derived by application of the Assigned Special Tax A or (ii) the
amount derived by application of the Backup Special Tax A.
(ii) Assigned Special Tax A — Zone 1
The Fiscal Year 2006-07 Assigned Special Tax A for each Land Use
Class within Zone 1 is shown below in Table 1.
City of Azusa April 13, 2006
IA No. 1 of CFD No. 2005-1 (Rosedale) Page 6
G
E
TABLE 1
Assigned Special Tax A for Developed Property
Fiscal Year 2006-2007
Zone 1
'Land Use
Class
-
Descnpton
,. .
Residential Floor
Area.
_ Zone.l." ..,
(PA 4 4B; SA, 5B, 7A)
Assigned Special Tax A
1
Residential Property
> 4,150 SF
$7;007.40 per unit
2
Residential Property
3,951 —4,150 SF
$6,524.94 per unit
3
Residential Property
3,751 — 3,950 SF
$6,424.98 per unit
4
Residential Property
3,551 — 3,750 SF
$6,163.86 per unit
5
Residential Property
3,351— 3,550 SF
$5,977.20 per unit
6
Residential Property
3,151 — 3,350 SF
$5,865.00 per unit
7
Residential Property
2,951 - 3,150 SF
$5,621.22 per unit
8
Residential Property
2,751 — 2,950 SF
$5,304.00 per unit
9
Residential Property
2,551 — 2,750 SF
$4,866.42 per unit
10
Residential Property
<2,551 SF
$4,509.42 per unit
11
Non -Residential Property
NA
$30,600.00 per Acre
On each July 1, commencing July 1, 2007 the Assigned 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.
(iii) Assigned Special Tax A — Zone 2
The Fiscal Year 2006-07 Assigned Special Tax A for each Land Use
Class within Zone 2 is shown below in Table 2.
City of Azusa April 13, 2006
M No. 1 of CFD No. 2005-1 (Rosedale) - _ page 7
0
TABLE 2
Assigned Special Tax A for Developed Property
Fiscal Year 2006-2007
Zone 2
On each July 1, commencing July 1, 2007 the Assigned 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.
(iv) Backup Special Tax A
a. Residential Property
The Fiscal Year 2006-07 Backup Special Tax A attributable
to Residential Property within a Final Map will equal the
amount indicated in Table 3 below for the applicable Final
Map multiplied by the Acreage of all Taxable Property
located within such Final Map, excluding current or expected
Non -Residential Property or Other Taxable Property.
The Fiscal Year 2006-07 Backup Special Tax A for each
Assessor's Parcel of Residential Property in aFinal Map shall
be computed by dividing the aggregate Backup Special Tax A
attributable to such Final Map by the number of Assessor's
Parcels of Taxable Property for which building permits for
residential construction have or may be issued (i.e., the
number of residential dwelling units).
City of Azusa April 13, 2006
IA No. 1 of CFD No. 2005-1 (Rosedale) - Page 8
Zone 2,
Land Use,
-
(Village Core and
Class
Descrrphon
Residential Floor
Garden Court ) -
Area .°
— - -,
Assigned Special Tax A
1
Residential Property
> 2,700 SF
$4,974.54 per unit
2
Residential Property
2,501 — 2,700 SF
$4,775.64 per unit
3
Residential Property
2,301 — 2,500 SF
$4,537.98 per unit
4
Residential Property
2,101 — 2,300 SF
$4,526.76 per unit
5
Residential Property
< 2,101 SF
$4,288.08 per unit
6
Non -Residential Property
NA
$30,600.00 per Acre
On each July 1, commencing July 1, 2007 the Assigned 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.
(iv) Backup Special Tax A
a. Residential Property
The Fiscal Year 2006-07 Backup Special Tax A attributable
to Residential Property within a Final Map will equal the
amount indicated in Table 3 below for the applicable Final
Map multiplied by the Acreage of all Taxable Property
located within such Final Map, excluding current or expected
Non -Residential Property or Other Taxable Property.
The Fiscal Year 2006-07 Backup Special Tax A for each
Assessor's Parcel of Residential Property in aFinal Map shall
be computed by dividing the aggregate Backup Special Tax A
attributable to such Final Map by the number of Assessor's
Parcels of Taxable Property for which building permits for
residential construction have or may be issued (i.e., the
number of residential dwelling units).
City of Azusa April 13, 2006
IA No. 1 of CFD No. 2005-1 (Rosedale) - Page 8
0
TABLE 3
Backup Special Tax A
Fiscal Year 2006-07
for Final Maps in IA No. 1
Zone..
Tentative'- .
Tract/Tract
FY 1006-07
Backup Special Tax A
Zone 1
54057-8
$45,101.88
perAcre
Zone 1
54057-12
$36,594.95
per Acre
Zone 1
54057-18
$40,951.50
per Acre
Zone 1
54057-20
$46,611.42
per Acre
Zone 1
54057-3
$42,229.63
per Acre
Zone 1
54057-9
$37,204.31
per Acre
Zone 1
54057-19
$44,178.24
per Acre
Zone 1
54057-13
$44,814.30
per Acre
Zone 1
54057-7
$38,254.94
per Acre
Zone 1
54057-10
$38,060.74
perAcre
Zone 1
54057-16
$37,810.34
per Acre
Zone 1
54057-14
$36,423.64
per Acre
Zone 1
54057-4
$45,298.06
per Acre
Zone 1
54057-15
$38,512.52
per Acre
Zone 1
54057-17
$37,009.35
per Acre
Zone 1
54057-11
$42,864.33
per Acre
Zone 1
54057-6
$35,559.60
per Acre
Zone 1
54057-2
$31,709.12
per Acre
Zone 1
54057-5
$33,405.16
per Acre
Zone 1
Any Other Tract
$43,421.02
per Acre
Zone 2
63336
$74,329.91
per Acre
Zone 2
64417
$74,791.09
per Acre
Zone 2
Any Other Tract
$82,581.06
per Acre
Notwithstanding the foregoing, if all or any portion of a Final
Map is subsequently changed or modified, then the Backup
Special Tax A for each Assessor's Parcel of Residential
Property in such Final Map that is changed or modified shall
be a rate per Acre calculated as follows:
Determine the total Backup Special Tax A anticipated
to applyto the changed or modified Final Map prior to
the change or modification.
2. The result of paragraph 1 above shall be divided by
the total Acreage of Taxable Property excludingNon-
Residential Property and Other Taxable Property
which is expected to exist in such changed or
modified Final Map area, as reasonably determined by
the CFD Administrator.
City of Azusa April 13, 2006
IA No. I of CFD No. 2005-1 (Rosedale) page 9
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3. The result is the Backup Special Tax A per Acre
which shall be applicable to all Assessor's Parcels of
Residential Property in such changed or modified
Final Map.
The Backup Special Tax A shall not change for an Assessor's
Parcel of Residential Property within a Final Map unless such
Assessor's Parcel of Residential Property was changed or
modified.
On each July 1, commencing July 1, 2007 the Backup Special
Tax A for each Final Map shall be increased by an amount
equal to two percent (2%) of the amount in effect for the
previous Fiscal Year.
b. Non -Residential Property
The Fiscal Year 2006-07 Backup Special Tax A attributable
to Non -Residential Property shall be the amount indicated in
Table 4 below.
TABLE 4
Backup Special Tax A for
Non -Residential Property
Fiscal Year 2006-07
Zone 1 and Zone 2
FY 2006-07
Backup Special Tax A
Zdne :, for: Ni Residential Property
1 $43,421.02 per Acre
2 $82,581.06 per Acre
On each July 1, commencing July 1, 2007 the Backup Special
Tax A for Non -Residential Property shall be increased by an
amount equal to two percent (2%) of the amount in effect for
the previous Fiscal Year.
(v) Multiple Land Use Classes
In some instances an Assessor's Parcel of Developed Property may
contain more than one Land Use Class. The Assigned Special Tax A
levied on an Assessor's Parcel shall be the sum of the Assigned
Special Tax A for all Land Use Classes located on that Assessor's
Parcel. The Maximum Special Tax A that can be levied on an
City of Azusa April 13, 2006
IA No. 7 of CFD No. 2005-1 (Rosedale) _ _ Page 10
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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.
b. Undeveloped Property and Other Taxable Property
The Fiscal Year 2006-07 Maximum Special Tax A for Undeveloped Property
and Other Taxable Property within each Zone is shown below in Table 5.
TABLE 5
Maximum Special Tax A for
Undeveloped Property and Other Taxable Property
Fiscal Year 2006-07
Zone 1 and Zone 2
Zone
FY 2006-07
Maximum Special Tax A
1
$43,725.36 per Acre
2
$83,203.44 per Acre
On each July 1, commencing July 1, 2007 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 (29/o) of the amount in
effect for the previous Fiscal Year.
2. Special Tax B
a. Developed Property
(i) Maximum Special Tax B
The Fiscal Year 2006-07 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 6.
City of Azusa April 13, 2006
IA No. 1 of CFD No. 2005-1 (Rosedale) Page 11
TABLE 6
Maximum Special Tax B for Developed Property
Fiscal Year 2006-07
Zone 1 and Zone 2
On each July 1, commencing July 1, 2007 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
Parcel.
b. Undeveloped Property
The Fiscal Year 2006-07 Maximum Special Tax B for Undeveloped Property
within each Zone is shown below in Table 7.
TABLE 7
Maximum Special Tax B for
Undeveloped Property
Fiscal Year 2006-07
Zone 1 and Zone 2
FY 2006=07
Zone ' . Maximum Special Tax B
1 $1,773.46 per Acre
2 $1,773.46 per Acre
City of Azusa April 13, 2006
IA No. I of CFD No. 2005-1 (Rosedale) Page 12
Zone 2
Land UseFY2006-0T
Description '
,
FY 2006-07
Class
Maximum, Social;
Maximum Special .
Tax.B
Tax B
1
Residential Property
$571.24 per unit
$423.30 per unit
2
Non -Residential Property
$3,621.52 per Acre
$6,152.79 per Acre
On each July 1, commencing July 1, 2007 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
Parcel.
b. Undeveloped Property
The Fiscal Year 2006-07 Maximum Special Tax B for Undeveloped Property
within each Zone is shown below in Table 7.
TABLE 7
Maximum Special Tax B for
Undeveloped Property
Fiscal Year 2006-07
Zone 1 and Zone 2
FY 2006=07
Zone ' . Maximum Special Tax B
1 $1,773.46 per Acre
2 $1,773.46 per Acre
City of Azusa April 13, 2006
IA No. I of CFD No. 2005-1 (Rosedale) Page 12
9
On each July 1, commencing July 1, 2007 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. Properly Owner Association Pronerly and Public Property
There shall be no Special Tax B levied on Property Owner Association
Property and Public Property.
D. 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 bythe Builder for a residential dwelling unit
if the Total Tax and Assessment Obligation is expected to be greater than two percent (2.0%)
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 I.2 which shall be sufficient to reduce the Total Tax and Assessment
Obligation to two percent (2.0%) 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 (2.0%) of the Value of such residential dwelling unit, no
One -Time Special Tax will be required.
E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
1. Special Tax A
Commencing with Fiscal Year 2006-2007 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 I and Zone 2 at up to 100% of the applicable Assigned
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. I and
Zone 2 at up to 100% of the Maximum Special Tax A for Undeveloped Property;
City of Azusa April 13, 2006
L4 No. I of CFD No. 2005-1(Rosedale) _ Page 13
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Third: If additional monies are needed to satisfy the Special Tax Requirement for
Facilities after the first two steps have been completed, then the levy of the Special
Tax A on each Assessor's Parcel of Developed Property in Zone 1 and Zone 2 whose
Maximum Special Tax A is determined through the application of the Backup
Special Tax A shall be increased in equal percentages from the Assigned Special Tax
A up to the Maximum Special Tax A for each such Assessor's Parcel;
Fourth: If additional monies are needed to satisfy the Special Tax Requirement for
Facilities after the first three 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 2006-2007 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. 2 Special Tax B, until
the amount of Special Tax B and IA No. 2 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 land 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. 2 RMA, the IA No. 2
Special Tax B shall be levied on each Assessor's Parcel of IA No. 2 Developed
Property in Zone 1 and Zone 2 at up to 100% of the applicable IA No. 2 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 Assessor's Parcel of Undeveloped Property in Zone I 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. 2 RMA, the IA No. 2
Special Tax B shall be levied Proportionately on each Assessor's Parcel of IA No. 2
Undeveloped Property in Zone 1 and Zone 2 at up to 100% of the IA No. 2
Maximum Special Tax B for Undeveloped Property.
3. One -Time Special Tax
The One -Time Special Tax may be levied on any Assessor's Parcel as required in
Section D.
Notwithstanding the above, under no circumstances will the Special Tax A or Special Tax B
levied against any Assessor's Parcel of Residential Property for which a Certificate of
Occupancy for private residential use has been issued be increased by more than ten percent
City of Azusa April 13, 2006
IA No. 1 of CFD No. 2005-1 (Rosedale) Page 14
F.
0 0
as a consequence of delinquency or default by the owner of any other Assessor's Parcel
within CFD No. 2005-1.
1. Special Tax A
No Special Tax A shall be levied on up to 97.36 Acres of Property Owner
Association Property and Public Property in Zone 1 and up to 15.62 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 fourth step in Section E.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.
G. 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 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 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 Rate and Method of Apportionment.
City of Azusa April 13, 2006
IA No. I of CFD No. 2005-1 (Rosedale) Page 15
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H. 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. 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.
The One -Time Special Tax shall be paid directly to the City by, or on behalf of, the Builder.
I. PREPAYMENT OF SPECIAL TAX
The following definitions apply to this Section I:
"CFD Public Facilities" means either $58.2 million in 2006 dollars, which shall increase by
the Construction Inflation Index on July 1, 2007, 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. 1 under the authorized bonding program for IA No.
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 E.
"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 CFD Public
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. 1 prior to the
date of prepayment.
City of Azusa April 13, 2006
IA No. I of CFD No. 2005-1 (Rosedale) Page 16
1. Prepayment in Full
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 maybe 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 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.
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 A
and Backup Special Tax A. For Assessor's Parcels of Undeveloped Property for
which a building permit has been issued, compute the Assigned Special Tax A and
Backup 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. (a) Divide the Assigned Special Tait A computed pursuant to paragraph 2 by the total
estimated Assigned Special Tax A for the entire IA No. 1 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. 1, excluding any Assessor's
Parcels which have been prepaid, and
City of Azusa April 13, 2006
M No. I of CFD No. 2005-I (Rosedale) Page 17
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(b) Divide the Backup Special Tax A computed pursuant to paragraph 2 by the total
estimated Backup Special Tax A at buildout for the entire IA No. 1, 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").
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 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. 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 (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.
City of Azusa April 13, 2006
IA No. I of CFD No. 2005-1 (Rosedale) Page 18
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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 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. 1.
The Special Tax A Prepayment Amount maybe 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
Assigned Special Tax A that may be levied on Taxable Property (based on expected
development at build out), both prior to and 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
City of Azusa Apri113, 2006
1A No. 1 of CFD No. 1005-1 (Rosedale) Page 19
prepaid. The Partial Prepayment Amount shall be calculated as in Section I.1; except that
a partial prepayment shall be calculated according to the following formula:
PP = [(PE -AE) x F] + AE
These terms have the following meaning:
AE = the Administrative Fees and Expenses
PP = the partial prepayment
PE = the Prepayment Amount calculated according to Section I.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 I.1, and (ii) indicate in the records of IA No. 1 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 E.
Notwithstanding the foregoing, no partial prepayment will be allowed unless the amount
of Assigned Special Tax A that may be levied on Taxable Property (based on expected
development at build out), both prior to and 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.
I TERM OF SPECIAL TAX
The Special Tax A and the One -Time Special Tax shall be levied for a period not to exceed
fifty years commencing with Fiscal Year 2006-07. The Special Tax B shall be levied as long
as necessary to meet the Special Tax Requirement for Services.
KACLIENTS21Amsa.cty\MeIIo\cfd 2005-MMMIAI RMA_10.doc
City of Azusa April 13, 2006
IA No. 1 of CFD No. 2005-1 (Rosedale) _ Page 20
0
0
CITY OF AZUSA
COMMUNITY FACILITIES DISTRICT NO. 2005-1
(ROSEDALE)
RATE AND METHOD OF APPORTIONMENT OF
THE SPECIAL TAR FOR IMPROVEMENT AREA NO.2
RVPUBwUM1595004. 1 C-2-1
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 2006-2007, 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
real 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. DEFINITIONS
This 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. 1" prior to the defined term. 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 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 April 13, 2006
IA No. 2 of CFD No. 2005-1 (Rosedale) Page I
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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 number.
"Assessor's Parcel Map" means an official map of the Assessor of the County designating
parcels by Assessor's Parcel number.
"Assigned Special Tax A" means the Special Tax A for each Land Use Class of Developed
Property within IA No. 2, as determined in accordance with Section C.1 below.
"Backup Special Tax A" means the Special Tax A applicable to each Assessor's Parcel of
Developed Property within IA No.2, as determined in accordance with Section C.1 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 a newly constructed residential dwelling unit.
"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.
"Final Map" means (i) a final map, or portion thereof, approved by the City pursuant to the
Subdivision Map Act (California Government Code Section 66410 et seq.) that creates
individual lots or parcels for which residential building permits may be issued, or (ii) for
City of Azusa April 13, 2006
IA No. 2 of CFD No. 2005-I (Rosedale) Page 2
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condominiums, a final map approved by the City and a condominium plan recorded pursuant
to California Civil Code Section 1352 creating such individual lots or parcels.
"Fiscal Year" means the period starting July 1 and ending on the following June 30.
"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 "lA 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 6.
"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 any 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 any 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 (2.0%) 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 Certificate of Occupancy.
"Other Taxable Property" means Taxable Property Owner Association Property and
Taxable Public Property.
City ojAzasa April 13, 2006
IA No. 2 of CFD No. 2005-1 (Rosedale) Page 3
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"Outstanding Bonds" means all Bonds which are deemed to be outstanding under the
Indenture.
"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 Assigned 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. 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 determination of Residential
Floor Area shall be made by reference to the building permit(s) issued for each dwelling unit.
"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 Rate and Method of Apportionment.
"Special Tax" means the Special Tax A, Special Tax B, 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.
"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.
City of Azusa April 13, 2006
IA No. 2 of CFD No. 2005-I (Rosedale) Page 4
"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. 1 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. 1 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 F below.
"Taxable Property Owner Association Property" means all Assessor's Parcels of Property
Owner Association Property that are not exempt from the Special Tax pursuant to Section F
below.
"Taxable Public Property" means all Assessor's Parcels of Public Property that are not
exempt pursuant to Section F 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 a
Certificate of Occupancy for such residential dwelling unit is expected to be issued. 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.
"Undeveloped Property" means, for each Fiscal Year, all Taxable Propertynot classified as
Developed Property or Other Taxable Property.
"Value" means the full. sales price of a residential dwelling unit as determined prior to the
City of Azusa AprU 13, 2006
IA No. 2 of CFD No. 2005-1(Rosedale) Page 5
0 0
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 1A 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 the rate and method of apportionment
determined pursuant to Sections C and D below. Developed Property shall be classified as
Residential Property and Non -Residential Property.
C. MAXIMUM SPECIAL TAX RATE
Special Tax A
a. Developed Property
Residential Property in Zone 1 shall be assigned to Land Use Classes 1
through 4 in Table 1, and Non -Residential Property in Zone 1 shall be
assigned to Land Use Class 5 in Table 1. Residential Property in Zone 2 shall
be assigned to Land Use Class 1 through 4 in Table 2, and Non -Residential
Property in Zone 2 shall be assigned to Land Use Class 5 in Table 2. The
Assigned Special Tax A for Residential Property shall be based on the
Residential Floor Area of the dwelling units located on the Assessor's Parcel.
The Assigned Special Tax A for Non -Residential Property shall be based on
the Acreage of the Assessor's Parcel.
(i) Maximum Special Tax A
The Maximum Special Tax A for each Assessor's Parcel classified as
Developed Property in IA No. 2 shall be the greater of (i) the amount
derived by application of the Assigned Special Tax A or (ii) the
amount derived by application of the Backup Special Tax A.
(ii) Assigned Special Tax A — Zone 1
The Fiscal Year 2006-07 Assigned Special Tax A for each Land Use
Class within Zone 1 is shown below in Table 1.
City of Azusa April 13, 1006
IA No. 2 of CFD No. 2005-1 (Rosedale) Page 6
0
E
TABLE 1
Assigned Special Tax A for Developed Property
Fiscal Year 2006-2007
Zone 1
On each July 1, commencing July 1, 2007 the Assigned 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.
(iii) Assigned Special Tax A — Zone 2
The Fiscal Year 2006-07 Assigned Special Tax A for each Land Use
Class within Zone 2 is shown below in Table 2.
TABLE 2
Assigned Special Tax A for Developed Property
Fiscal Year 2006-2007
Zone 2
'Zone 1
Land Use
Class,.Descnption
Description
Residential Floor
(Great Park and Transit 1)
Area
Assigned Special Tax A
1
Residential Property
> 1,800 SF
$4,050.42 per unit
2
Residential Property
1,601 — 1,800 SF
$3,748.50 per unit
3
Residential Property
1,401 — 1,600 SF
$3,788.28 per unit
4
Residential Property
< 1,401 SF
$3,151.80 per unit
5
Non -Residential Property
NA
$30,600.00 per Acre
On each July 1, commencing July 1, 2007 the Assigned 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.
(iii) Assigned Special Tax A — Zone 2
The Fiscal Year 2006-07 Assigned Special Tax A for each Land Use
Class within Zone 2 is shown below in Table 2.
TABLE 2
Assigned Special Tax A for Developed Property
Fiscal Year 2006-2007
Zone 2
City of Azusa April 13, 2006
IA No. 2 of CFD No. 2005-1 (Rosedale) Page 7
Zone 2
Land Use
Class
Description
Residential Floor
(Transit 2)
Area
Assigned Special Tax A.
1
Residential Property
> 1,600 SF
$3,605.70 per unit
2
Residential Property
1,401 — 1,600 SF
$3,311.94 per unit
3
Residential Property
1,201 — 1,400 SF
$2,883.54 per unit
4
Residential Property
< 1,201 SF
$2,893.74 per unit
5
Non -Residential Property
NA
$30,600.00 per Acre
City of Azusa April 13, 2006
IA No. 2 of CFD No. 2005-1 (Rosedale) Page 7
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On each July 1, commencing July 1, 2007 the Assigned 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.
(iv) Backup Special Tax A
a. Residential Property
The Fiscal Year 2006-07 Backup Special Tax A attributable
to Residential Property within a Final Map will equal the
amount indicated in Table 3 below for the applicable Final
Map multiplied by the Acreage of all Taxable Property
located within such Final Map, excluding current or expected
Non -Residential Property or Other Taxable Property. .
The Fiscal Year 2006-07 Backup Special Tax A for each
Assessor's Parcel of Residential Property in a Final Map shall
be computed by dividing the aggregate Backup Special Tax A
attributable to such Final Map by the number of Assessor's
Parcels of Taxable Property for which building permits for
residential construction have or may be issued (i.e., the
number of residential dwelling units).
TABLE 3
Backup Special Tax A
Fiscal Year 2006-07
Notwithstanding the foregoing, if all or any portion of a Final
Map is subsequently changed or modified, then the Backup
Special Tax A for each Assessor's Parcel of Residential
Property in such Final Map that is changed or modified shall
be a rate per Acre calculated as follows:
Determine the total Backup Special Tax A anticipated
to apply to the changed or modified Final Map prior to
the change or modification. .
City of Azusa - April 13, 2006
IA No. 2 of CFD No. 2005-1 (Rosedale) Page 8
FY 2006-07
Backup. Special Tax A
Zone
for] 3esidential-Property
Zone 1
$166,755.91 per Acre
Zone 2
$171,909.04 per Acre
Notwithstanding the foregoing, if all or any portion of a Final
Map is subsequently changed or modified, then the Backup
Special Tax A for each Assessor's Parcel of Residential
Property in such Final Map that is changed or modified shall
be a rate per Acre calculated as follows:
Determine the total Backup Special Tax A anticipated
to apply to the changed or modified Final Map prior to
the change or modification. .
City of Azusa - April 13, 2006
IA No. 2 of CFD No. 2005-1 (Rosedale) Page 8
The result of paragraph 1 above shall be divided by
the total Acreage of Taxable Property excluding Non -
Residential Property and Other Taxable Property
which is expected to exist in such changed or
modified Final Map area, as reasonably determined by
the CFD Administrator.
3. The result is the Backup Special Tax A per Acre
which shall be applicable to all Assessor's Parcels of
Residential Property in such changed or modified
Final Map.
The Backup Special Tax A shall not change for an Assessor's
Parcel of Residential Property within a Final Map unless such
Assessor's Parcel of Residential Property was changed or
modified.
On each July 1, commencing July 1, 2007 the Backup Special
Tax A for each Final Map shall be increased by an amount
equal to two percent (2%) of the amount in effect for the
previous Fiscal Year.
b. Non -Residential Property
The Fiscal Year 2006-07 Backup Special Tax A attributable
to Non -Residential Property shall be the amount indicated in
Table 4 below.
TABLE 4
Backup Special Tax A for
Non -Residential Property
Fiscal Year 2006-07
Zone 1 and Zone 2
On each July 1, commencing July 1, 2007 the Backup Special
Tax A for Non -Residential Property shall be increased by an
amount equal to two percent (2%) of the amount in effect for
the previous Fiscal Year.
City of Azusa April 13, 2006
IA No. 2 of CFD No. 2005-1 (Rosedale) Page 9
FY 2006-07-. .
Backup Special Tax A.
Zone-
for Non -Residential Property
1
$166,755.91 per Acre
2
$171,909.04 per Acre
On each July 1, commencing July 1, 2007 the Backup Special
Tax A for Non -Residential Property shall be increased by an
amount equal to two percent (2%) of the amount in effect for
the previous Fiscal Year.
City of Azusa April 13, 2006
IA No. 2 of CFD No. 2005-1 (Rosedale) Page 9
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(v) Multiple Land Use Classes
In some instances an Assessor's Parcel of Developed Property may
contain more than one Land Use Class. The Assigned Special Tax A
levied on an Assessor's Parcel shall be the sum of the Assigned
Special Tax A for all Land Use Classes located on that Assessor's
Parcel. 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.
b. Undeveloped Properly and Other Taxable Property
The Fiscal Year 2006-07 Maximum Special Tax A for Undeveloped Property
and Other Taxable Property within each Zone is shown below in Table 5.
TABLE 5
Maximum Special Tax A for
Undeveloped Property and Other Taxable Property
Fiscal Year 2006-07
Zone 1 and Zone 2
FY 2006-07
Zone Maximum Special'Tax A
1 $184,872.95 per Acre
2 $189,261.73 per Acre
On each July 1, commencing July 1, 2007 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.
City of Azusa April 13, 2006
IA No. 2 of CFD No. 2005-1 (Rosedale) Page 10
i 0
2. Special Tax B
a. Developed Property
(i) Maximum Special Tax B
The Fiscal Year 2006-07 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 6.
TABLE 6
Maximum Special Tax B for Developed Property
Fiscal Year 2006-07
Zone 1 and Zone 2
On each July 1, commencing July 1, 2007 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
Parcel.
b. Undeveloped Property
The Fiscal Year 2006-07 Maximum Special Tax B for Undeveloped Property
within each Zone is shown below in Table 7.
City of Azusa April 13, 2006
IA No. 2 of CFD No. 1005-1 (Rosedale) Page 11
Zone 1
Zone 2 .
Land Use
Description
FY 2006-07
FY 2006-07
Class
Maximum Special ..:
Maximum Special
Tax B:
Tax B
1
Residential Property
$306.66 per unit
$289.63 per unit
2
Non -Residential Property
$4,357.97 per Acre
$4,340.11 per Acre
On each July 1, commencing July 1, 2007 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
Parcel.
b. Undeveloped Property
The Fiscal Year 2006-07 Maximum Special Tax B for Undeveloped Property
within each Zone is shown below in Table 7.
City of Azusa April 13, 2006
IA No. 2 of CFD No. 1005-1 (Rosedale) Page 11
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TABLE 7
Maximum Special Tax B for
Undeveloped Property
Fiscal Year 2006-07
Zone 1 and Zone 2
On each July 1, commencing July 1, 2007 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 Pronertv and Public Property
There shall be no Special Tax B levied on Property Owner Association
Property and Public Property.
D. 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 (2.0%)
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 I.2 which shall be sufficient to reduce the Total Tax and Assessment
Obligation to two percent (2.0%) 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 (2.0%) of the Value of such residential dwelling unit, no
One -Time Special Tax will be required.
City of Azusa April 13, 1006
L4 No. 2 of CFD No. 2005-1 (Rosedale) Page 12
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E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Special Tax A
Commencing with Fiscal Year 2006-2007 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 Assigned
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;
Third: If additional monies are needed to satisfy the Special Tax Requirement for
Facilities after the first two steps have been completed, then the levy of the Special
Tax A on each Assessor's Parcel of Developed Property in Zone 1 and Zone 2 whose
Maximum Special Tax A is determined through the application of the Backup
Special Tax A shall be increased in equal percentages from the Assigned Special Tax
A up to the Maximum Special Tax A for each such Assessor's Parcel;
Fourth: If additional monies are needed to satisfy the Special Tax Requirement for
Facilities after the first three 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 2006-2007 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 1 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;
City of Azusa April 13, 2006
IA No. 2 of CFD No. 2005-1 (Rosedale) Page 13
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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 Assessor's 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. 1
Maximum Special Tax B for Undeveloped Property.
3. One -Time Special Tax
The One -Time Special Tax may be levied on any Assessor's Parcel as required in
Section D.
Notwithstanding the above, under no circumstances will the Special Tax A or Special Tax B
levied against any Assessor's Parcel of Residential Property for which a Certificate of
Occupancy 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. 2005-1.
F. EXEMPTIONS
Special Tax A
No Special Tax A shall be levied on up to 18.94 Acres of Property Owner
Association Property and Public Property in Zone 1 and up to 6.70 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 fourth step in Section E.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.
G. 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 Taxes. During the pendency of an appeal, all Special Taxes previously levied must
City of Azusa April 13, 2006
IA No. 2 of CFD No. 1005-1 (Rosedale) Page 14
0 0
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 Rate and Method of Apportionment.
H. 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 One -Time Special Tax shall be paid directly to the City by, or on behalf of, the Builder.
1. PREPAYMENT OF SPECIAL TAX
The following definitions apply to this Section I:
"CFD Public Facilities" means either $21.7 million in 2006 dollars, which shall increase by
the Construction Inflation Index on July 1, 2007, 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 Rate and Method of
Apportionment as described in Section E.
"Construction Inflation Index" means the annual percentage change in the Engineering
News -Record Building Cost hrdex 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
City of Azusa April 13, 2006
IA No. 2 of CFD No. 2005-1 (Rosedale) I Page 15
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 CFD Public
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
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 maybe 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 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.
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
City of Azusa - April 13, 1006
IA No. 2 of CFD No. 1005-1 (Rosedale) Page 16
0 0
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 A
and Backup Special Tax A. For Assessor's Parcels of Undeveloped Property for
which a building permit has been issued, compute the Assigned Special Tax A and
Backup 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.
(a) Divide the Assigned Special Tax A computed pursuant to paragraph 2 by the total
estimated Assigned 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, and
(b) Divide the Backup Special Tax A computed pursuant to paragraph 2 by the total
estimated Backup Special Tax A at buildout for the entire IA No. 2, 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").
6. Compute the current Future Facilities Costs.
7. 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 Tax A levied on the Assessor's Parcel in the current Fiscal
Year which has not yet been paid.
City of Azusa April 13, 1006
IA No. 2 of CFD No. 2005-1 (Rosedale) Page 17
0 0
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 larger
quotient computed pursuant to paragraph 3(a) or 3(b) by the expected balance in the
capitalized interest 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. hi 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
City of Azusa April 13, 2006
IA No. 2 of CFD No. 1005-1 (Rosedale) Page 18
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
Assigned Special Tax A that may be levied on Taxable Property (based on expected
development at build out), both prior to and 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 I.1; except that
a partial prepayment shall be calculated according to the following formula:
PP = [(PE -AE) x F] + AE
These terms have the following meaning:
AE = the Administrative Fees and Expenses
PP = the partial prepayment
PE = the Prepayment Amount calculated according to Section I.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 (3 0) 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 I.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 E.
Notwithstanding the foregoing, no partial prepayment will be allowed unless the amount
of Assigned'Special Tax A that maybe levied on Taxable Property (based on expected
City of Azusa April 13, 2006
IA No. 2 of CFD No. 2005-1(Rosedale) Page 19
development at build out), both prior to and 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.
I TERM OF SPECIAL TAX
The Special Tax A and the One -Time Special Tax shall be levied for a period not to exceed
fifty years commencing with Fiscal Year 2006-07. The Special Tax B shall be levied as long
as necessary to meet the Special Tax Requirement for Services.
K:ICLIENTS21Az sa.cty%Mellotcfd 2005-1\RMAUA2_RMA_4.doc
City of Azusa April 13, 2006
lA No. 2 of CFD No. 2005-1 (Rosedale) Page 20
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CITY OF AZUSA
COMMUNITY FACILITIES DISTRICT NO. 2005-1
(ROSEDALE)
RATE AND METHOD OF APPORTIONMENT OF
THE SPECIAL TAX FOR IMPROVEMENT AREA NO.2
RVPUBWUM\695004. I C-2-1