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HomeMy WebLinkAbout05-154 - Resolutions RESOLUTION NO. 05-154 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, OF INTENTION TO CONSIDER REVISIONS TO FACILITIES AUTHORIZED TO BE FINANCED BY AND THE RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES AUTHORIZED TO BE LEVIED WITHIN COMMUNITY FACILITIES DISTRICT NO. 2000- 3 (RANCHO SUMMIT) AND THE AUTHORIZED BONDED INDEBTEDNESS THEREOF WHEREAS, the City Council of the City of Rancho Cucamonga, California, (the "City Council") has previously undertaken proceedings to form Community Facilities District No 2000-3 (Rancho Summit) (the "District') and to authorize the levy of special taxes within the District and the issuance by the District of bonds pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, as amended (Government Code Section 53311 and following) (the "Act') to finance the acquisition or construction of certain authorized facilities (the "Existing Authorized Facilities"); and WHEREAS, the qualified electors of the District, voting in a special election held on October 11, 2000, approved the authorization of the District to levy special taxes within the District pursuant to a rate and method of apportionment of such special taxes (the "Existing Rate and Method"); and WHEREAS, at such election, the qualified electors of the District approved the authorization of the District to incur a bonded indebtedness in an amount not to exceed $3,000,000 to pay for Existing Authorized Facilities (the "Existing Bond Authorization"); WHEREAS, subsequent to the formation of the District and such election, Pulte Home Corporation ("Pulte"), the current master developer of the property within the District, has requested, and the City staff and City financing team for the District have concurred with such request, that the City Council, acting in its capacity as the legislative body of the District, initiate proceedings to consider modifying the Existing Authorized Facilities, the Existing Rate and Method and the Existing Bond Authorization; and WHEREAS, this City Council desires to initiate such proceedings and to set the time and place for a public hearing on this Resolution. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2000-3 (RANCHO SUMMIT), AS FOLLOWS: SECTION 1: RECITALS. The above recitals are all true and correct. SECTION 2: DESCRIPTION OF THE AREA TO BE AFFECTED. The area to be affected by the proposed revision, if approved, is all of the District which is generally described as follows: Resolution No. 05-154 Page 2 of 18 All property within the boundaries of Community Facilities District No. 2000-3 (Rancho Summit), as shown on a map as previously approved by the City Council of the City, such map designated by the name of such District, a copy of which is on file in the office of the City Clerk of the City. SECTION 3: DECLARATION OF INTENTION TO CONSIDER THE REVISION OF THE EXISTING AUTHORIZED FACILITIES, THE EXISTING RATE AND METHOD AND THE EXISTING BOND AUTHORIZATION. This City Council hereby declares its intention to consider revising: A. the Existing Authorized Facilities to authorize the District to also finance those additional facilities as identified in Exhibit A attached hereto and incorporated herein by this reference (the "Additional Authorized Facilities"); B. the Existing Rate and Method so that the rate and method of apportionment of special taxes authorized to be levied within the District reads as set forth in Exhibit B attached hereto and incorporated herein by this reference; and C. the Existing Bond Authorization to increase such authorization to $10,000,000. SECTION 4: PUBLIC HEARING. NOTICE IS HEREBY GIVEN that on June 15, 2005, at the hour of 7:00 p.m., in the regular meeting place of the City Council, being the Council Chambers located at 10500 Civic Center Drive, Rancho Cucamonga, California, the City Council will hold a public hearing (the "Public Hearing") to consider this Resolution and to consider the approval of the revision of the Existing Authorized Facilities, the Existing Rate and Method and the Existing Bond Authorization as proposed herein. At such time and place all interested persons or taxpayers for or against the approval of the revision of the Existing Authorized Facilities, the Existing Rate and Method and/or the Existing Bond Authorization will be heard. At the above-mentioned time and place for public hearing any persons interested, including taxpayers and property owners may appear and be heard. The testimony of all interested persons for or against the revision of the Existing Authorized Facilities, the Existing Rate and Method and/or the Existing Bond Authorization will be heard and considered. Any protests may be made orally or in writing. However, any protests pertaining to the regularity or Resolution No. 05-154 Page 3 of 18 sufficiency of the proceedings shall be in writing and clearly set forth the irregularities and defects to which the objection is made. All written protests shall be filed with the City Clerk of the City on or before the time fixed for the public hearing. Written protests may be withdrawn in writing at any time before the conclusion of the public hearing. If a written majority protest is filed against the revision of the Existing Authorized Facilities, the Existing Rate and Method and/or the Existing Bond Authorization, the proceedings for such revision or revisions shall be abandoned. SECTION 5: ELECTION. If, following the public hearing described in Section 4 above, the City Council determines to approve the revision of the Existing Authorized Facilities, the Existing Rate and Method and/or the Existing Bond Authorization, the City Council shall then submit the revision of the Existing Authorized Facilities, the Existing Rate and Method and/or the Existing Bond Authorization to the qualified electors of the District. If at least twelve (12) persons, who need not necessarily be the same twelve (12) persons, have been registered to vote within the District for each of the ninety (90) days preceding the close of the public hearing, the vote shall be by registered voters of the District, with each voter having one (1) vote. Otherwise, the vote shall be by the landowners of the District who were the owners of record at the close of the subject hearing, with each landowner or the authorized representative thereof, having one (1) vote for each acre or portion of an acre of land owned within the District. If the time for holding such election as specified by the Act is waived by the unanimous consent of qualified electors of the District and the City Clerk, as the election official, concurs, the ballot materials shall be distributed to the qualified electors of the District prior to January 5, 2005 and such materials shall state that such election shall be held on January 5, 2005 or such later date to which the Public Hearing is continued and closed immediately following the adoption of the resolution calling such election and that all ballots must be received by the City Clerk, acting in her capacity as the election official, not later than the close of the Public Hearing. SECTION 6: NOTICE OF PUBLIC HEARING. The City Clerk is hereby authorized and directed to give notice of such public hearing by publication pursuant to Government Code Section 6061 in a legally designated newspaper of general circulation with such publication to be completed at least seven (7) days prior to the date set for such public hearing. Resolution No. 05-154 Page 4 of 18 SECTION 7: EFFECTIVE DATE. This Resolution shall become effective immediately upon its adoption. PASSED, APPROVED, AND ADOPTED this 4" day of May 2005. AYES: Alexander, Gutierrez, Michael, Spagnolo, Williams NOES: None ABSENT: None ABSTAINED: None William J. AJ xander, Mayor ATTEST: e ra J. Adam C, City Clerk I, DEBRA J. ADAMS, CITY CLERK of the City of Rancho Cucamonga, California, do hereby certify that the foregoing Resolution was duly passed, approved and adopted by the City Council of the City of Rancho Cucamonga, California, at a Regular Meeting of said City Council held on the 4th day of May 2005. Executed this 5`" day of May 2005, at Rancho Cucamonga, California. ebra J. Adkm , CMC, City Clerk Resolution No. 05-154 Page 5 of 18 EXHIBIT A COMMUNITY FACILITIES DISTRICT NO. 2000-3 (RANCHO SUMMIT) ADDITIONAL AUTHORIZED FACILITIES The Additional Authorized Facilities include the following facilities and improvements which are in addition to the facilities and improvements currently authorized to be financed by the District: 1. Landscaping of parks and parkways; and 2. Park equipment with a useful life of five (5) years or more Resolution No. 05-154 Page 6 of 18 EXHIBIT B AMENDED AND RESTATED RATE AND METHOD OF APPORTIONMENT FOR CITY OF RANCHO CUCAMONGA COMMUNITY FACILITIES DISTRICT NO. 2000-03 (RANCHO SUMMIT) A Special Tax hereinafter defined shall be levied on all Assessor's Parcels of Taxable Property in Community Facilities District No.2000-03 of the City of Rancho Cucamonga("CFD No.2000-03") and collected each Fiscal Year commencing in Fiscal Year 2005-06,in an amount determined by the City Council of the City of Rancho Cucamonga, through the application of this Amended and Restated Rate and Method of Apportionment as described below. All of the real property in CFD No.2000-03,unless exempted by law or by the provisions hereof,shall be taxed for the purposes,to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable final map,parcel map,condominium plan,or other recorded County parcel map. The square footage of an Assessor's Parcel is equal to the Acreage of such parcel multiplied by 43,560. "Act" means the Mello-Roos Community Facilities Act of 1982,being Chapter 2.5,Part 1, Division 2 of Title 5 of the California Government Code. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2000-03: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the County or otherwise);the costs of remitting the Special Taxes to the Trustee;the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture;the costs to the City,CFD No.2000-03 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2000-03 or any designee thereof of complying with disclosure requirements applicable to CFD No. 2000-03 and/or the City associated with applicable federal and state securities laws and of the Act;the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2000-03 or any designee thereof related to an appeal of the Special Tax;the costs associated with the release of funds from any escrow account; and the City's annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2000-03 for any other administrative purposes of CFD No. 2000-03, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. City of Rancho Cucamonga(Rancho Summit) April 26,2005 CFD No. 2000-03 Page 1 Resolution No. 05-154 Page 7 of 18 "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned Assessor's Parcel number. "Assessor's Parcel Map" means an official map of the County Assessor of the County designating parcels by Assessor's Parcel number. "Assigned Special Tax A" means the Special Tax A for each Land Use Class of Developed Property as determined in accordance with Section C.L(b). below. "Backup Special Tax A" means the Special Tax A applicable to each Assessor's Parcel of Developed Property in each Zone,as determined in accordance with Section C.L(d).below. "Bonds" means any bonds or other debt (as defined in Section 53317(d) of the Act), whether in one or more series, issued by CFD No. 2000-03 under the Act. "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.2000-03"means City of Rancho Cucamonga Community Facilities District No. 2000-03 (Rancho Summit). "City" means the City of Rancho Cucamonga. "Consumer Price Index"means,for each Fiscal Year,the Consumer Price Index published by the U.S. Bureau of Labor Statistics for "All Urban Consumers" in the Los Angeles - Anaheim - Riverside Area, measured as of the month of December in the calendar year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Consumer Price Index shall be another index as determined by the CFD Administrator that is reasonably comparable to the Consumer Price Index for the City of Los Angeles. "Council" means the City Council of the City, acting as the legislative body of CFD No. 2000-03. "County" means the County of San Bernardino. "Developed Property" means, for each Fiscal Year, all Taxable Property, exclusive of Taxable Public Property and Taxable Property Owner Association Property, for which the Final Subdivision was recorded on or prior to January I of the prior Fiscal Year and a building permit for new construction was issued after January 1,2004 and prior to March 1 of the prior Fiscal Year. "Final Subdivision" means a subdivision of property by recordation of a final map,parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California City of Rancho Cucamonga(Rancho Sunnnit) April 16,2005 CFD No.2000-03 Page 2 I Resolution No. 05-154 Page 8 of 18 Civil Code 1352 that creates individual lots for which building permits may be issued without further subdivision. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Indenture" means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued,as modified,amended and/or supplemented from time to time. "Land Use Class" means any of the classes listed in Table 1 below. "Maximum Special Tax" means the Maximum Special Tax 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 below, that can be levied in any Fiscal Year on any Assessor's Parcel. "Maximum Special Tax B"means the maximum Special Tax B determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor's Parcel. "Non-Residential Property"means all Assessor's Parcels of Developed Property for which a building permit permitting the construction of one or more non-residential units or facilities has been issued by the City. "Outstanding Bonds" means all Bonds which are deemed to be outstanding under the Indenture. "Property Owner Association Property"means,for each Fiscal Year,any property within the boundaries of CFD No. 2000-03 that was owned by a property owner association, including any master or sub-association, as of January 1 of the prior Fiscal Year. "Proportionately"means, for Developed Property,that the ratio of the actual Special Tax A levy to the Assigned Special Tax A is approximately 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 approximately equal for all Assessor's Parcels of Developed Property. For Undeveloped 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. The term "Proportionately" may similarly be applied to other categories of Taxable Property as listed in Section D below. "Public Property" means property within the boundaries of CFD No.2000-03 owned by, irrevocably offered or dedicated to,or for which an easement for purposes of public right-of- way has been granted to the federal government, the State of California, the County of San Bernardino,the City of Rancho Cucamonga,or any local government or other public agency, provided 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 according to its use. City of Rancho Cucamonga(Rancho Summit) April 26,2005 CFD No. 2000-03 Page 3 Resolution No. 05-154 Page 9 of 18 "Residential Floor Area" means all of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Residential Floor Area for an Assessor's Parcel shall be made by reference to the building permit(s) issued for such Assessor's Parcel. "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit permitting the construction thereon of one or more residential dwelling units has been issued by the City. "Special Tax" means the Special Tax A and/or Special Tax B, as applicable. "Special Tax A"means the special tax to be levied in each Fiscal Year on each Assessor's Parcel of Taxable Property within CFD No. 2000-03 to fund the Special Tax Requirement for Facilities. "Special Tax B"means the special tax to be levied in each Fiscal Year on each Assessor's Parcel of Taxable Property within CFD No. 2000-03 to fund the Special Tax Requirement for Services. "Special Tax Requirement for Facilities" means that amount required in any Fiscal Year for CFD No. 2000-03 to: (i)pay debt service on all Outstanding Bonds due in the calendar year commencing in such Fiscal Year;(ii)pay periodic costs on the Bonds,including but not limited to, credit enhancement and rebate payments on the Bonds due in the calendar year commencing in such Fiscal Year;(iii)pay a proportionate share of Administrative Expenses; (iv)pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds; (v) pay for reasonably anticipated Special Tax A delinquencies based on the delinquency rate for the Special Tax A levy in the previous Fiscal Year; less(vi)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. 2000-03 to: (i) pay the costs of park maintenance due in the calendar year commencing in such Fiscal Year as determined by the CFD Administrator; (ii) pay an amount necessary to fund an operating reserve for the costs of park maintenance; (iii)pay a proportionate share of Administrative Expenses; less (iv) a credit for funds available to reduce the annual Special Tax B levy, as determined by the CFD Administrator. "State" means the State of California. "Taxable Property"means all of the Assessor's Parcels within the boundaries of CFD No. 2000-03 which are not exempt from the Special Tax pursuant to law or Section E below. "Taxable Property Owner Association Property" means, for each Fiscal Year, all Assessor's Parcels of Property Owner Association Property that are not exempt from the Special Tax pursuant to Section E below. City of Rancho Cucamonga(Rancho Summit) April 16,2005 CFD No. 1000-03 page 4 Resolution No. 05-154 Page 10 of 18 "Taxable Public Property" means, for each Fiscal Year, all Assessor's Parcels of Public Property that are not exempt from the Special Tax pursuant to Section E below. "Trustee" means the trustee or fiscal agent under the Indenture. "Undeveloped Property" means, for each Fiscal Year,all Taxable Property not classified as Developed Property, Taxable Public Property or Taxable Property Owner Association Property. "Zone" means Zone 1 or Zone 2, as applicable. "Zone 1" means Assessor Parcel number 0226-102-13 (as designated on the County Assessor's Roll for Fiscal Year 2004-2005) and the land area geographically identified as Parcel A in Tentative Tract Map No. 14759 approved by the Planning Commission of the City on November 10, 1999. Zone 1 may be subject to amendment from time-to-time or modification pursuant to a final map or precise site plan for such property at the sole discretion of the CFD Administrator provided that such amendment or modification will not reduce the amount of Maximum Special Tax A below the amount required to equal at least 1.1 times the maximum annual debt service on all Outstanding Bonds, plus the Administrative Expenses. "Zone 2" means the land area geographically identified as Parcel B-1, Parcel B-2, and Parcel C in Tentative Tract Map No. 14759 approved by the Planning Commission of the City on November 10, 1999. Zone 2 may be subject to amendment from time-to-time or modification pursuant to a final map or precise site plan for such property at the sole discretion of the CFD Administrator provided that such amendment or modification will not reduce the amount of Maximum Special Tax A below the amount required to equal at least 1.1 times the maximum annual debt service on all Outstanding Bonds, plus the Administrative Expenses. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year,all Taxable Property within CFD No.2000-03 shall be assigned to a Zone and further classified as Developed Property, Taxable Public Property, Taxable Property Owner Association Property,or Undeveloped Property,and shall be subject to Special Taxes in accordance with this Amended and Restated Rate and Method of Apportionment determined pursuant to Sections C and D below. Residential Property shall be assigned to Land Use Classes 1 through 10 and Non-Residential Property shall be assigned to Land Use Class 11. The Maximum Special Tax for Residential Property shall be based on the Residential Floor Area of the dwelling unit(s)located on the Assessor's Parcel. The Maximum Special Tax for Non-Residential Property shall be based on the Acreage of the Assessor's Parcel. The Maximum Special Tax for any Assessor's Parcel of Developed Property containing more than one Land Use Class shall be determined pursuant to Section C below. City of Rancho Cucamonga(Rancho Summit) April 26,1005 CFD No. 2000-03 page 5 Resolution No. 05-154 Page 11 of 18 C. MAXIMUM SPECIAL TAX 1. Developed Property (a). Maximum Special Tax The Maximum Special Tax A for each Assessor's Parcel classified as Developed Property shall be the greater of (i) the amount derived by application of the Assigned Special Tax A or (ii) the amount derived by application of the Backup Special Tax A. The Maximum Special Tax B for each Land Use Class of Developed Property is shown below in Table 1. The Maximum Special Tax for each Assessor's Parcel classified as Developed Property shall be the Maximum Special Tax A plus the Maximum Special Tax B. (b). Assigned Special Tax A The Fiscal Year 2005-2006 Assigned Special Tax A for each Land Use Class is shown below in Table 1. TABLE 1 Assigned Special Tax A and Maximum Special Tax B for Developed Property in City of Rancho Cucamonga Community Facilities District No. 2000-03 (Rancho Summit) Fiscal Year 2005-2006 Land Use Description Residential Floor Assigned Special Maximum Special Class Area Tax A Tax B 1 Residential Property < 1,850 s.f. $1,707 per unit $945 per unit 2 Residential Property 1,850—2,049 s.f. $1,899 per unit $945 per unit 3 Residential Property 2,050—2,249 s.f. $2,027 per unit $945 per unit 4 Residential Property 2,250—2,449 s.f. $2,046 per unit $945 per unit 5 Residential Property 2,450—2,649 s.f. $2,061 per unit $945 per unit 6 Residential Property 2,650—2,849 s.f. $2,235 per unit $945 per unit 7 Residential Property 2,850—3,049 s.f. $2,462 per unit $945 per unit 8 Residential Property 3,050—3,249 s.f. $2,527 per unit $945 per unit 9 Residential Property 3,250—3,449 s.f. $2,677 per unit $945 per unit 10 Residential Property => 3,450 s.f. $2,696 per unit $945 per unit 11 Non-Residential Property NA $12,600 per Acre $4,683 per Acre City of Rancho Cucamonga(Rancho Summit) April 26,2005 CFD No. 2000-03 Page 6 Resolution No. 05-154 Page 12 of 18 (c). Increase in the Assigned Special Tax A and Maximum Special Tax B The Fiscal Year 2005-2006 Assigned Special Tax A, identified in Table 1 above, shall not be subject to change and shall therefore remain the same in every Fiscal Year. On each July 1, commencing on July 1, 2006, the Maximum Special Tax B listed in Table 1 above shall be increased based on the percentage change in the Consumer Price Index,with a maximum annual increase of six percent(6%) and a minimum annual increase of two percent (2%) per Fiscal Year. (d). Backup Special Tax A The Fiscal Year 2005-2006 Backup Special Tax A for an Assessor's Parcel of Developed Property in Zone 1 shall equal $9,601 per Acre or portion thereof. The Fiscal Year 2005-2006 Backup Special Tax A for an Assessor's Parcel of Developed Property in Zone 2 shall equal $14,824 per Acre or portion thereof. The Backup Special Tax A applicable to Zone 1 or Zone 2 shall not be subject to change and shall therefore remain the same in every Fiscal Year. (e). 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 levied on an Assessor's Parcel shall be the sum of the Maximum Special Taxes for all Land Use Classes located on that Assessor's Parcel. For an Assessor's Parcel that contains both Residential Property and Non-Residential Property, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The CFD Administrator's allocation to each type of property shall be final. 2. Undeveloped Property,Taxable Public Property,and Taxable Property Owner Association Property (a). Maximum Special Tax A The Fiscal Year 2005-2006 Maximum Special Tax A for Undeveloped Property,Taxable Public Property,and Taxable Property Owner Association Property in Zone 1 or Zone 2 shall be $14,824 per Acre or portion thereof. (b). Maximum Special Tax B The Fiscal Year 2005-2006 Maximum Special Tax B for Undeveloped Property in Zone 1 or Zone 2 shall be $4,683 per Acre or portion thereof. Taxable Public Property and Taxable Property Owner Association Property shall not be subject to a Maximum Special Tax B. City of Rancho Cucamonga(Rancho Summit) April 26,2005 CFD No. 2000-03 page 7 Resolution No. 05-154 Page 13 of 18 (c). Increase in the Maximum Special Tax The Fiscal Year 2005-2006 Maximum Special Tax A for Undeveloped Property,Taxable Public Property,and Taxable Property Owner Association Property shall not be subject to change and shall therefore remain the same in every Fiscal Year. On each July 1, commencing on July 1, 2006, the Maximum Special Tax B for Undeveloped Property identified in Section C.2.(b). above shall be increased based on the percentage change in the Consumer Price Index,with a maximum annual increase of six percent(6%) and a minimum annual increase of two percent(2%)per Fiscal Year. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX 1. Special Tax A Commencing with Fiscal Year 2005-2006 and for each following Fiscal Year,the Council shall determine the Special Tax Requirement for Facilities and shall levy the Special Tax A until the total Special Tax A levy 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 on each Assessor's Parcel of Developed Property in an amount equal to 100% of the applicable Assigned Special Tax A; 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 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 Taxable Public Property and Taxable Property Owner Association Property at up to the Maximum Special Tax A for Taxable Public Property and Taxable Property Owner Association Property. Notwithstanding the above the Council may, in any Fiscal Year, levy Proportionately less than 100% of the Assigned Special Tax A in step one (above), when (i) the Council is no longer required to levy the Special Tax A pursuant to steps two through four above in order to meet the Special Tax Requirement for Facilities; and (ii) all authorized Bonds have already been issued or the Council has covenanted that it will not issue any additional Bonds (except refunding bonds) to be supported by the Special Tax A. City of Rancho Cucamonga(Rancho Summit) April 26,2005 CFD No. 2000-03 Page 8 Resolution No. 05-154 Page 14 of 18 Further notwithstanding the above, under no circumstances will the Special Tax A levied against any Assessor's Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent as a consequence of delinquency or default by the owner of any other Assessor's Parcel within CFD No. 2000-03. 2. Special Tax B Commencing with Fiscal Year 2005-2006 and for each following Fiscal Year,the Council shall determine the Special Tax Requirement for Services and shall levy the Special Tax B until the total Special Tax B levy 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 at up to 100% of the applicable Maximum Special Tax B; 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, which as of January 1 of the previous Fiscal Year was located within a Final Subdivision,at up to 100%of the Maximum Special Tax B for Undeveloped Property; Third: If additional monies are needed to satisfy the Special Tax Requirement for Services after the second step has been completed,the Special Tax B shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property, which as of January 1 of the previous Fiscal Year was not located within a Final Subdivision, at up to 100% of the Maximum Special Tax B for Undeveloped Property; E. EXEMPTIONS 1. Special Tax A No Special Tax A shall be levied on up to 21.88 Acres of Public Property and/or Property Owner Association Property in Zone 1 and up to 38.41 Acres of Public Property and/or Property Owner Association Property in Zone 2. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which property becomes Public Property or Property Owner Association Property. However,should an Assessor's Parcel no longer be classified as Public Property or Property Owner Association Property,its tax-exempt status will be revoked. Public Property or Property Owner Association Property that is not exempt from the 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 D.1 above, at up to 100% of the applicable Maximum Special Tax A for Taxable Public Property or Taxable Property Owner Association Property. City of Rancho Cucamonga(Rancho Summit) April 26,2005 CFD No. 2000-03 page 9 Resolution No. 05-154 Page 15 of 18 2. Special Tax B No Special Tax B shall be levied on Public Property and Property Owner Association Property in Zone 1 and/or Zone 2. F. APPEALS AND INTERPRETATIONS Any landowner or resident who feels that the amount of the Special Tax levied on their Assessor's Parcel is in error may submit a written appeal to CFD No. 2000-03. The CFD Administrator shall review the appeal and if the CFD Administrator concurs,the amount of the Special Tax levied shall be appropriately modified. The Council may interpret this Amended and Restated Rate and Method of Apportionment for purposes of clarifying any ambiguity and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals. Any decision of the Council shall be final and binding as to all persons. G. MANNER OF COLLECTION The Special Tax A and Special Tax B will be collected in the same manner and at the same time as ordinary ad valorem property taxes;provided,however,that CFD No.2000-03 may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations,and may covenant to foreclose and may actually foreclose on delinquent Assessor's Parcels as permitted by the Act. H. PREPAYMENT OF SPECIAL TAX A The following additional definitions apply to this Section H: "Previously Issued Bonds" means, for any Fiscal Year, all Outstanding Bonds that are deemed to be outstanding under the Indenture after the first interest and/or principal payment date following the current Fiscal Year. Only an Assessor's Parcel of Developed Property, or Undeveloped Property for which a building permit has been issued,may be prepaid. The Special Tax A obligation applicable to an Assessor's Parcel in CFD No. 2000-03 may only be prepaid after all authorized Bonds have already been issued, or after the Council has covenanted that it will not issue any additional Bonds(except refunding bonds)to be supported by the Special Tax A levy under this Amended and Restated Rate and Method of Apportionment. The obligation of the Assessor's Parcel to pay any Special Tax A may be permanently satisfied as described herein, provided that a prepayment may be made with respect to a particular Assessor's Parcel 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 for such Assessor's Parcel. The CFD Administrator may charge a reasonable fee for providing this service. Prepayment must be made not less City of Rancho Cucamonga(Rancho Summit) April 26,2005 CFD No. 2000-03 Page 10 Resolution No. 05-154 Page 16 of 18 than 45 days prior to the next occurring date that notice of redemption of Bonds from the proceeds of such prepayment may be given by the Trustee pursuant to the Indenture. The Special Tax B may not be prepaid. The Special Tax A Prepayment Amount(defined below)shall be calculated as summarized below (capitalized terms as defined below): Bond Redemption Amount plus Redemption Premium 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 Special Tax A 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 the Assessor's Parcel to be prepaid. For Assessor's Parcels of Undeveloped Property for which building permits have already been issued, compute the Assigned Special Tax A and Backup Special Tax A For the Assessor's Parcel to be prepaid as though it were already designated as Developed Property,based upon the building permit which has been issued for that Assessor's Parcel. 3. (a)Divide the Assigned Special Tax A computed pursuant to paragraph 2 by the total estimated Assigned Special Tax A for CFD No. 2000-03 based on the Developed Property Special Tax A which could be charged in the current Fiscal Year on all expected development in CFD No. 2000-03, excluding any Assessor's Parcels for which the Special Tax A has been prepaid, and (b)Divide the Backup Special Tax A computed pursuant to paragraph 2 by the total estimated Backup Special Tax A which could be charged in the current Fiscal Year on all expected development in CFD No.2000-03,excluding any Assessor's Parcels for which the Special Tax A has been prepaid. 4. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the Previously Issued Bonds to compute the amount of Previously Issued Bonds to be retired and prepaid (the "Bond Redemption Amount"). City of Rancho Cucamonga(Rancho Summit) April 26,2005 CFD No. 2000-03 Page II Resolution No. 05-154 Page 17 of 18 5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium (e.g., the redemption price-100%), if any, on the Previously Issued Bonds to be redeemed(the "Redemption Premitan"). 6. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date not covered by the current Fiscal Year Special Tax A levy until the earliest redemption date for the Previously Issued Bonds. 7. Determine the Special Tax A levied on the Assessor's Parcel in the current Fiscal Year which has not yet been paid. 8. Add the amounts computed pursuant to paragraphs 6 and 7. 9. Compute the net present value of the amount computed pursuant to paragraph 8, using as a discount rate the rate of return reasonably assumed for the conservative investment of these funds by the CFD Administrator(the "Defeasance Amount"). 10. The administrative fees and expenses of CFD No. 2000-03 are as calculated by the CFD Administrator and include 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"). 11. The reserve fund credit(the"Reserve Fund Credit")shall equal the lesser of: (a)the expected reduction in the reserve requirement(as defined in the Indenture), if any, associated with the redemption of Previously Issued 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 Previously Issued 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. No Reserve Fund Credit shall be granted if the amount then on deposit in the reserve fund for the Previously Issued Bonds is below 100%of the reserve requirement(as defined in the Indenture). 12. If any capitalized interest for the Previously Issued Bonds will not have been expended as of the date immediately following the first bond interest and/or principal payment date 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 or account under the Indenture after such first interest and/or principal payment(the"Capitalized Interest Credit"). 13. The Special Tax A prepayment is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 9 and 10, less the amounts computed pursuant to paragraphs 1 I and 12 (the "Prepayment Amount"). City of Rancho Cucamonga(Rancho Summit) April 26,1005 CFD No. 2000-03 Page 11 Resolution No. 05-154 Page 18 of 18 From the Prepayment Amount,the amounts computed pursuant to paragraphs 4,5,9, 11 and 12 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Previously Issued Bonds, as applicable, or make scheduled debt service payments. The amount computed pursuant to paragraph 10 shall be retained by CFD No. 2000-03. The Special Tax A Prepayment Amount may be insufficient to redeem a full $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 scheduled debt service payments on such bonds. Upon confirmation of the payment of the current Fiscal Year's Special Tax A levy as determined under paragraph 7 (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 for which the Special Tax A obligation is prepaid in full in accordance with this Section H,the Council shall cause a suitable notice to be recorded in compliance with the Act,to indicate the prepayment of the 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 Special Tax A prepayment shall be allowed unless,at the time of such proposed prepayment, the amount of Maximum Special Tax A that may be levied on Taxable Property within CFD No.2000-03(after excluding 21.88 Acres of Public Property and/or Property Owner Association Property in Zone 1 and 38.41 Acres of Public Property and/or Property Owner Association Property in Zone 2 as set forth in Section E) both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Previously Issued Bonds, plus the Administrative Expenses. 1. TERM OF SPECIAL TAX The Special Tax A shall be levied for a period not to exceed fifty years commencing with Fiscal Year 2005-2006,provided however that the Special Tax A will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined that all required interest and principal payments on the Bonds have been paid. The Special Tax B shall be levied as long as necessary to meet the Special Tax Requirement for Services. K:\Clients2\RanchoCucamonga\Rancho summlt\RMA\RMADraft7.doc Revised: 4/26/05 City of Rancho Cucamonga(Rancho Summit) April 26,2005 CFD No. 2000-03 page 13