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HomeMy WebLinkAbout94-103 - ResolutionsRESOLUTIC~NO. 94-103 A RESOLUTIC~ OF ~HE CITY (IX~CIL OF ~E CITY OF ~ PREPAYMenT OF SPECIAL TAXES WITHIN ~ FAC~.~ DISTRICT88-2 ~EREAS, the City Council of the City of Rar~ho Ortega b~-~ previously _un~e__=~%ken proce~gs an~ formed a Cu~,-,nity Facilities District pursuant to the terms and provisio~ of the '9~ello-Roos ~ty Facilities Act of 1982", being Chapter 2.5, Part 1, Divisio~ 2, Title 5 of the Goretruest COde of the State of California (the "Act"). This Oa~mmity Facilities District is designated as ~ FAC~,TTIES DISTRICT NO. 88-2 (hereinafter referred to as the "District"); and, ~{EAS, following approval by the qualified electors of the District, the legislative body did enact Ordinance No. 397 authorizing the levy of a special tax, as fur describedtherein, within theDistrict; and, WHEREAS, this Board now desires to specify conditions under which the obligation to pay said special tax may be p~epaid and permanently satisfied. NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: S~fION 1. That the above recitals are all true and correct. That this legislative body does hereby establish the conditions for prepayment and satisfaction of the special tax obligation as follows: Ae The special tax may be prepaid and permanently satisfied at any time upon the payment to the District of the present value of said special tax obligation as of the date of perpayment as set forth in Exhibit "At' attached hereto and incoxporated herein by this reference. Special taxes shall only be authorized for early payment and discharge of special taxes when the property is in the category designated as Final Land Use, and no prepaymerits can be made prior to that time unless it is determined that the amount of prepayment and discharge is equal to and/or greater than what would be required for the land in a Final Land Use taxing category. Refunds would be available in any case of a ~3b~quent overcharge of any prepayment amount. No prepayment is authorized for special taxes levied to pay for any servioes as authorized, if applicable. ResolutionNo. 94-103 p~3e2 That this legislative body may annually review the discount rate utilized to determine the present value of the special tax obligation set fcx~h in E~hibit "A" hereto if this legislative body determines that said modified discount rate would result in the calculatic~ of a then more accurate present value for said special tax obligation. PASSED, ~, and ADO~this lstday of June, 1994. Mayor Pro Tern I, D~RAJ. ADAMS, CITY cr~RK of the City of Rancho~, California, do hereby oertify that the foregoing Besolution was duly passed, approved, and adopted by the City Council of the City of P~ho Cucamonga, Califcxnia, at a regular meeting of said City Council held on the lstday of June, 1994. Executed this 2rid day of June, 1994, at Rancho Cucamor~ja, California. City Clerk EXHIBIT "A" BesolutimNo. 94-103 Pa~3 Prepayment of SI;eci. i Taxes The Special Tax imposed on any parcel in the District may be prepaid in full on any Interest Payment Date (the "Prepayment Date") by payment of an amount as determined by the District according to the Prepayment Formula. The Prepayment Formula is defined as f,ollows: P = PVT+CT-RFC + F; The variables are described as f,oliows: P Prepayment Amount PVT - Present Value of Taxes CT - Current Taxes RFC - Reserve Fund Credit F - Prepayment Fees "Present Value of Taxes" means the present value as of the Prepayment Date of any unpaid portion of the Maximum Special Tax applicable to the subject parcel in each fiscal year subsequent to the fiscal year in which the calculation is made remaining until the maturity of the Bonds, using the tax yield on the Bonds (as such term is defined in the non-arbitrage certificate of the District) as the discount rate. The Maximum Special Tax as used in such calculation shall be determined in accordance with the Special Tax Formula based on assignment of' the subject parcel to the appropriate land use category identified in the Special Tax Formula. The Maximum Special Tax applicable to such parcel shall be the maximum tax applicable to the parcel according to its taxing classification as established in the Special Tax Formula. "Current Year Taxes" means the Special Taxes due with respect to the subject property for the current fiscal year. "Reserve Fund Credit" shall be calculated as a reduction in the Reserve Fund proportional to the principal amount of Bonds to be redeemed pursuant to the Present Value of' Taxes determined above, provided that the Reserve Fund Credit shall be applicable only if' the Reserve Fund equals the Reserve Requirement at the Prepayment Date. "Prepayment Fees" shall mean the sum of (i) the fees of the District, the Paying Agent and any consultants retained by the District in connection with the prepayment calculation and Bond redemption and (ii) through September 1, 2003, a prepayment redemption premium of 3% of the Present Value of Taxes net of the Reserve Fund Credit, therefer such redemption premium shall correspond to the redemption prices calculated for the optional redemption of Bonds. In addition to the above, any property owner prepaying his or her Special Taxes must also pay all delinquent Special Taxes, interest and penalties owing on the parcel on which the payment is being made, if any. The District will rebate to the property owner any Special Taxes received subsequent to the Prepayment Date with respect to Special Taxes levied and paid for the current fiscal year for the subject parcel.