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HomeMy WebLinkAbout05-201 - Resolutions RESOLUTION NO. 05 -201 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2000-03(RANCHO SUMMIT),MAKING CERTAIN DETERMINATIONS AND AUTHORIZING THE SUBMITTAL OF THE PROPOSED MODIFICATIONS TO THE FACILITIES AUTHORIZED TO BE FINANCED BY SUCH DISTRICT, THE RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES TO BE LEVIED WITHIN SUCH DISTRICT AND THE AUTHORIZED BONDED DEBTEDNESS FOR SUCH DISTRICT TO THE QUALIFIED ELECTORS THEREOF FOR SUCH DISTRICT WHEREAS, the CITY COUNCIL of the CITY OF RANCHO CUCAMONGA, CALIFORNIA(the"City Council")has previously undertaken proceedings to create and did establish a Community Facilities District pursuant to the terms and provisions of the"Mello-Roos Community Facilities Act of 1982,"being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the "Act'). This Community Facilities District is referred to as COMMUNITY FACILITIES DISTRICT NO. 2000-03 (RANCHO SUMMIT) (the "District'); and WHEREAS, the qualified electors of the District, voting in a special election held on October 11, 2000, approved the authorization to(a)finance park improvements including clearing and grading of such park sites, park hardscape and restrooms, street improvements and parkway hardscape (the"Authorized Facilities); (b)levy special taxes within the District pursuant to a rate and method of apportionment of such special taxes (the "Existing RMA") and (c) to incur a bonded indebtedness of the amount not to exceed $3,000,000 (the "Existing Bond Authorization"); and WHEREAS,subsequent to the formation of the District and such election, Pulte Home Corporation, the current developer of the property within the District, has requested that the City Council,acting as the legislative body of the District,initiate proceedings to consider modifications to (a)the Authorized Facilities to be financed from the proceeds of bonds issued by the District which are secured by the levy of such special taxes, (b) the Existing RMA and (c) the Existing Bond Authorization; and WHEREAS, this City Council has adopted its Resolution No. 05-154 declaring its intention to consider modifications to(a)the Authorized Facilities, (b)the Existing RMA and (c)the Existing Bond Authorization; and WHEREAS, notice of a public hearing to consider the proposed modifications has been given in the form and manner required by the Act; and WHEREAS, such public hearing was held on June 15, 2005; and WHEREAS, it has now been determined that written protests have not been received from 50% or more of the registered voters residing within the District and/or property owners representing more than one-half(1/2)or more of the area of land within the District to the proposed modifications or any one of them; and Resolution No. 05-201 Page 2 of 21 WHEREAS, inasmuch as there have been less than twelve(12)persons registered to vote within the District for each of the 90 preceding days, this legislative body desires to submit the questions of authorizing the modifications to the Authorized Facilities, the Existing RMA and the Existing Bond Authorization to the landowners of the District, said landowners being the qualified electors as authorized by law. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO.2000-03(RANCHO SUMMIT),DOES HEREBY RESOLVE,DECLARE, FIND, DETERMINE AND ORDER AS FOLLOWS: SECTION 1: RECITALS. The above recitals are all true and correct. SECTION 2: DETERMINATIONS. It is determined by this City Council that: A. all proceedings related to the proposed modifications to (a) the Authorized Facilities, (b) the Existing RMA and (c) the Existing Bond Authorization prior hereto were valid and taken in conformity with the requirements of law, and specifically the provisions of the Act; B. the proposed modifications to(a)the Authorized Facilities, (b)the Existing RMA and (c) the Existing Bond Authorization conform with the City of Rancho Cucamonga Statement of Goals and Policies Regarding the Establishment of Community Facilities Districts; C. the Additional Facilities (as defined below) proposed to be financed from the proceeds of special taxes to be levied within the District are necessary to meet increased demands placed upon the City of Rancho Cucamonga as a result of development and/or rehabilitation occurring in the District. D. written protests have not been received by 50% or more of the registered voters residing within the District and/or property owners representing more than one-half(1/2)or more of the area of land within the District to the proposed modifications to (a)the Authorized Facilities, (b)the Existing RMA or(c)the Existing Bond Authorization; E. less than twelve (12) registered voters have resided within the District for each of the ninety(90)days preceding the close of the public hearing and, consequently, the qualified electors shall be the landowners and each landowner who is the owner of record as of the close of the public hearing, or the authorized representative thereof, shall have one vote for each acre or portion of an acre of land that she or he owns within the District; I Resolution No. 05-201 Page 3 of 21 F. the public hearing regarding the proposed modifications as required by the Act was held on June 15, 2005; and G. the qualified electors have consented to the shortening of time for conducting the special election to present the questions to authorize the modifications to(a)the Authorized Facilities, (b)the Existing RMA and (c) the Existing Bond Authorization, therefore, such special election may be conducted less than 90 days following the date of the public hearing to consider such modifications. SECTION 3: DESCRIPTION OF THE AREA TO BE AFFECTED. The area to be affected by the proposed modifications to the Authorized Facilities,the Existing RMA and the Existing Bond Authorization is all of the District. SECTION 4: PROPOSED MODIFICATION OF FACILITIES AUTHORIZED TO BE FINANCED BY THE DISTRICT. This City Council hereby approves, subject to the approval by the qualified electors of the District, the modification of the Authorized Facilities to authorize the District to finance the additional facilities set forth in Exhibit A attached hereto and incorporated herein by this reference (the"Additional Authorized Facilities" and together with the Authorized Facilities, the "Modified Facilities'). SECTION 5: PROPOSED MODIFICATION TO THE EXISTING RMA. Except to the extent that funds are otherwise available to the District to pay for the Modified Facilities, this City Council hereby approves, subject to the approval by the qualified electors of the District, changes to the Existing RMA to authorize the levy of special taxes within the District pursuant to the modified rate and method of apportionment of special taxes (the "Modified RMA") set forth in Exhibit B attached hereto and incorporated herein by this reference. Such modified special taxes shall be secured by recordation of a continuing lien against all non- exempt real property within the District, shall be levied annually therein, and shall be collected in the same manner as ordinary ad valorem property taxes, or in such other manner at this Board or its designee shall determine, including direct billing of the affected property owners. Under no circumstances will the special tax levied against any parcel used for private residential purposes be increased by more than 10%as a consequence of delinquency or default by the owner of any other parcel or parcels within the District. A parcel shall be considered "used for private residential purposes" not later than the date on which an occupancy permit or the equivalent for private residential use is issued for such parcel. The Modified RMA sets forth the conditions under which the special tax obligation for any parcel within the District may be prepaid and permanently satisfied in whole or in part. Resolution No. 05-201 Page 4 of 21 SECTION 6: PROPOSED MODIFICATION TO THE EXISTING BOND AUTHORIZATION. This City Council hereby approves,subject to the approval by the qualified electors of the District,the modification of the Existing Bond Authorization by increasing such authorization from $3,000,000 to $10,000,000 (the "Modified Bond Authorization"). SECTION 7: SPECIAL TAX ACCOUNTABILITY MEASURES. Pursuant to and in compliance with the provisions of Government Code Section 50075.1, this City Council hereby establishes the following accountability measures pertaining to the levy by the District of the special taxes described in Section 5 above: A. Such special tax shall be levied for the specific purposes set forth in Section 5 above. B. The proceeds of the levy of such special tax shall be applied only to the specific applicable purposes set forth in Section 5 above. C. The District shall establish a separate account into which the proceeds of such special tax shall be deposited. D. The City Manager or his or her designee, acting for and on behalf of the District, shall annually file a report with the City Council as required pursuant to Government Code Section 50075.3. SECTION 8: BOND ACCOUNTABILITY MEASURES. Pursuant to and in compliance with the provisions of Article 1.5 (commencing with Section 53410) of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code,this City Council hereby establishes the following accountability measures pertaining to any bonded indebtedness incurred by or on behalf of the District: A. Such bonded indebtedness shall be incurred for the purpose of financing the costs of the acquisition or construction of the Modified Facilities, appurtenances and appurtenant work and any and all of those applicable incidental costs described in and authorized by Government Code Section 53345.3. B. The proceeds of any such bonded indebtedness shall be applied only to the applicable specific purposes identified in paragraph A above. C. The document or documents establishing the terms and conditions for the issuance of any such bonded indebtedness shall provide for the creation of an account into which the proceeds of such indebtedness shall be deposited. D. The City Manager or his or her designee, acting for and on behalf of the District, shall annually file a report with this City Council as required by Government Code Section 53411. Resolution No. 05-201 Page 5 of 21 SECTION 9: ELECTION. The propositions to authorize the District to (a) finance the Additional Facilities, (b) levy special taxes within the District pursuant to the Modified RMA and (c) issue bonds secured by such special taxes in a principal amount not to exceed $10,000,000 shall be submitted to the qualified electors of the District, said electors being the landowners, with each landowner having one (1) vote for each acre or portion thereof of land which he or she owns within the District. The special election shall be held on June 15, 2005 or such other date as the City Clerk, acting as the election official for such special election (the"Election Official'),and all of the qualified electors within the District may agree and consent. If the proposition to authorize the District to finance the Additional Facilities receives the approval of more than two-thirds (2/3) of the votes cast on such proposition, the District may finance the Additional Facilities as provided for in this Resolution. If the proposition to authorize the levy of the special tax pursuant to the Modified RMA receives the approval of more than two-thirds(2/3)of the votes cast on such proposition,the special tax may be levied pursuant to the Modified RMA as provided for in this Resolution. If the proposition to authorize the District to incur a bonded indebtedness for the District in an amount equal to the Modified Bond Authorization receives the approval of more than two- thirds (2/3)of the votes cast on such proposition, the District shall be authorized to incur such bonded indebtedness as provided for in this Resolution. SECTION 10: BALLOT. The ballot proposals to be submitted to the qualified voters at the election shall generally be as follows: PROPOSITION A Shall City of Rancho Cucamonga Community Facilities District No. 2000-03 (Rancho Summit), revise the facilities authorized to be financed by such District to finance additional facilities to include landscaping of parks and parkways and park equipment with a useful life of five (5)years or more? PROPOSITION B Shall City of Rancho Cucamonga Community Facilities District No. 2000-03 (Rancho Summit), subject to the accountability measures set forth in Governmental Code Section 50075.1 and following, be authorized to levy a special tax therein pursuant to the amended and restated rate and method of apportionment as attached to the official ballot as Exhibit A thereto? Resolution No. 05-201 Page 6 of 21 PROPOSITION C Shall the City of Rancho Cucamonga Community Facilities District No. 2000-03 (Rancho Summit), subject to the accountability measures set forth in Government Code Section 53410 and following, be authorized to modify the existing bond authorization by increasing such authorization from $3,000,000 to $10,000,000? SECTION 11: VOTE. The appropriate mark placed in the box before the word"YES" shall be counted in favor of the adoption of the proposition voted upon, and the appropriate mark placed in the box before the word "NO" in the manner as authorized, shall be counted against the adoption of said proposition. SECTION 12: ELECTION PROCEDURE. The Election Official is hereby authorized to take any and all steps necessary for the holding of said election. Said Election Official shall perform and render all services and proceedings incidental to and connected with the conduct of said election, and said services shall include, but not be limited to the following: A. Prepare and furnish to the election officers necessary election supplies for the conduct of the election. B. Cause to be printed the requisite number of official ballots, tally sheets and other necessary forms. C. Furnish and address official ballots for the qualified electors of the District. D. Cause the official ballots to be mailed and/or delivered, as required by law. E. Receive the returns of the election. F. Sort and assemble the election material and supplies in preparation for the canvassing of the returns. G. Canvass the returns of the election. H. Furnish a tabulation of the number of votes given in the election. I. Make all arrangements and take the necessary steps to pay all costs of the election incurred as a result of services performed for the District and pay costs and expenses of all election officials. J. Conduct and handle all other matters relating to the proceedings and conduct of the election in the manner and form as required by law. Resolution No. 05-201 Page 7 of 21 PASSED, APPROVED,AND ADOPTED this 15`h day of June 2005. AYES: Alexander, Gutierrez, Michael, Williams NOES: None ABSENT: Spagnolo ABSTAINED: None cad William J. Al xander, Mayor ATTEST: Amw De ra J. AqV1 CMC, 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 15`h day of June 2005. Executed this 16`h day of June 2005, at Rancho Cucamonga, California. ZY. " a"" Debrh J. Adams, i Clerk Resolution No. 05-201 Page 8 of 21 CITY OF RANCHO CUCAMONGA COMMUNITY FACILITIES DISTRICT NO. 2000-03 (RANCHO SUMMIT) EXHIBIT "A" DESCRIPTION ADDITIONAL AUTHORIZED FACILITIES • Landscaping of parks and parkways; and • Park equipment with a useful life of five (5) years or more. Resolution No. 05-201 Page 9 of 21 CITY OF RANCHO CUCAMONGA COMMUNITY FACILITIES DISTRICT NO. 2000-03 (RANCHO SUMMIT) EXHIBIT "B" AMENDED AND RESTATED RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES 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. Resolution No. 05-201 Page 10 of 21 "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.1.(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.1.(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 1 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 Civil Code 1352 that creates individual lots forwhich building permits may be issued without further subdivision. Resolution No. 05-201 Page 11 of 21 "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 forwhich 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. "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. Resolution No. 05-201 Page 12 of 21 "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. '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. Resolution No. 05-201 Page 13 of 21 "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 Propertywithin 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. 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. Resolution No. 05-201 Page 14 of 21 (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 (c). Increase in the Assiqned 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. Resolution No. 05-201 Page 15 of 21 (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 Afor anAssessors 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. (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. Resolution No. 05-201 Page 16 of 21 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 "fax 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. 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: Resolution No. 05-201 Page 17 of 21 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. 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. Resolution No. 05-201 Page 18 of 21 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 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: Resolution No. 05-201 Page 19 of 21 Paragraph No.: 1. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel. 2. ForAssessor'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 anyAssessor'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'). 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 Premium"). 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"). Resolution No. 05-201 Page 20 of 21 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 forthe 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 11 and 12 (the "Prepayment Amount'). 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. Resolution No. 05-201 Page 21 of 21 I. 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.