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HomeMy WebLinkAbout06-181 - Resolutions RESOLUTION NO. 06-181 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, RE-ESTABLISHING ANNUAL SPECIAL TAX RATE FOR COMMUNITY FACILITIES DISTRICT 2003-01 FOR FISCAL YEAR 2006-2007 (IMPROVEMENT AREA NO. 1 ZONES 1, 2 & 3), SERIES 2003-A RECITALS WHEREAS, by its Resolution No. 03-031, adopted on February 19, 2003, the City Council of the City of Rancho Cucamonga, California (the "City Council'), pursuant to the Mello-Roos Community Facilities Act of 1982 (Section 53311 and following of the California Government Code) (the "Act") established City of Rancho Cucamonga Community Facilities District No. 2003-01 (the "District') and established within the District improvement areas designated Improvement Area No. 1, Zones 1, 2 & 3 (the "Improvement Area"); and WHEREAS, at an election held on February 19, 2003, the qualified electors of the Improvement Area No. 1, Zones 1, 2 & 3 unanimously approved the levy of a special tax against properties in the Improvement Area (the"Special Tax"); and WHEREAS, by its Ordinance No. 699 (the "Ordinance"), adopted on March 3, 2003 the City Council authorized the levy of the Special Tax in accordance with the Act; and WHEREAS, on August 20, 2003, the District delivered its $14,645,000 City of Rancho Cucamonga Community Facilities District No. 2003-01 Improvement Area No. 1, Zones 1, 2 & 3 Special Tax Bonds Series 2003-A (the "Bonds"); and WHEREAS, in a Fiscal Agent Agreement dated as of July 1, 2003 by and between the City and Wells Fargo Bank, National Association (the "Fiscal Agent'), the City covenanted to fix and levy the Special Tax within the Improvement Area No. 1, Zones 1, 2 & 3 for each fiscal year in an amount required for the payment of principal and interest on the Bonds becoming due and payable during that fiscal year, plus administrative expenses, but taking into account certain balances in funds held by the Fiscal Agent (the "Covenant'); and WHEREAS, interest will become due and payable on the Bonds during Fiscal Year 2006-2007 in an amount exceeding funds held by the Fiscal Agent and designated for the payment for such interest; and WHEREAS, the City Council intends to levy the Special Tax for Fiscal Year 2006-2007 as authorized by the Ordinance and required by the Covenant; and WHEREAS, the City Council intends to provide for the collection of such Special Tax for Fiscal Year 2006-2007 by City staff. NOW THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: Resolution No. 06-181 Page 2 of 10 SECTION 1: That the above recitals are all true and correct. SECTION 2: That the specific rate and amount of the Special Tax to be collected to pay for the costs and expenses for Fiscal Year 2006- 2007 for the District is hereby determined and established as set forth Exhibit "A" to this Resolution, which is attached hereto and incorporated herein by reference SECTION 3: That the rate as set forth above does not exceed the amount as previously authorized by Ordinance of this legislative body, and is not in excess of that as previously approved by the qualified electors of the District. SECTION 4: That the proceeds of the Special Tax shall be used to pay, in whole or in part, the costs of the following, in the following order of priority: A. Payment of principal and interest on any outstanding authorized bonded indebtedness; B. Necessary replenishment of bond reserve funds or other reserve funds; C. Payment of costs and expenses of authorized public facilities and public services, and incidental expenses pursuant to the Act; and D. Repayment of advances and loans, if appropriate. The proceeds of the special taxes shall be used as set forth above, and shall not be used for any other purpose. SECTION 5: The special tax shall be collected in the same manner as ordinary ad valorem property taxes are collected, and shall be subject to the same penalties and same procedure and sale in cases of any delinquency for ad valorem taxes, and the Tax Collector is hereby authorized to deduct reasonable administrative costs incurred in collecting any said special tax. SECTION 6: All monies collected pursuant to this Resolution shall be paid into the Community Facilities District funds, including any bond fund and reserve fund. Resolution No. 06-181 Page 3 of 10 SECTION 7: The Auditor of the County is hereby directed to enter in the next county assessment roll on which taxes will become due, opposite each lot or parcel of land effected in a space marked "public improvements, special tax", or by any other suitable designation, the installment of the special tax, and for the exact rate and amount of said tax, reference is made to the attached Exhibit "A". SECTION 8: The County Auditor shall then, .at the close of the tax collection period, promptly render to this Agency a detailed report showing the amount and/or amounts of such special tax installments, interest, penalties and percentages so collected and from what property collected, and also provide a statement of any percentages retained for the expense of making any such collection. Please see the following page for formal adoption,certification and signatures Resolution No. 06-181 Page 4 of 10 PASSED, APPROVED, AND ADOPTED this 7th day of June 2006. AYES: Alexander, Gutierrez, Michael, Spagnolo, Williams NOES: None ABSENT: None ABSTAINED: None r William J. AI ander, Mayor ATTEST: Debra J. Ad 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 7th day of June 2006. Executed this 8th day of June 2006, at Rancho Cucamonga, California. ,a, L a or�-� Debra J. Adamb QMC, City Clerk Resolution No. 06-181 Page 5 of 10 CITY OF RANCHO CUCAMONGA COMMUNITY FACILITIES DISTRICT NO. 2003-01 (IMPROVEMENT AREA NO. 1,ZONES 1, 2 & 3) SERIES 2003-A EXHIBIT "A" The Resolution establishing the annual special tax refers to this Exhibit for an explanation of the rate and method of apportionment of the Special Taxes for Fiscal Year 2006/2007. CLASSIFICATION OF PARCELS Improvement Area No. 1 Each Fiscal Year,all Taxable Property within Zone 1,Zone 2,and Zone 3 of CFD No. 2003-01 (IA No. 1)shall be classified as Developed Property or Undeveloped Property,and shall be subject to the levy of Special Taxes in accordance with the rate and method of apportionment determined pursuant to the sections below. MAXIMUM SPECIAL TAX RATE 1. ZONE 1 a. Zone 1 Developed Property (i). Maximum Special Tax The Maximum Special Tax for each Assessor's Parcel in Zone 1 classified as Developed Property shall be the greater of(i)the amount derived by application of the Assigned Special Tax for Zone 1 or(ii)the amount derived by application of the Backup Special Tax for Zone 1. (ii). Assigned Special Tax The Assigned Special Tax for each Assessor's Parcel of Developed Property in Zone 1 of CFD No. 2003-01 (IA No. 1)shall equal$4,318 per Acre for Fiscal Year 2003-04, and shall increase thereafter, commencing on July 1, Resolution No. 06-181 Page 6 of 10 2004 and on July 1 of each Fiscal Year thereafter,by an amount equal to two percent(2%)of the Assigned Special Tax for the previous Fiscal Year. (iii). Backup Special Tax The Backup Special Tax for each Assessor's Parcel of Developed Property in Zone 1 of CFD No.2003-01 (IA No. 1)shall equal $4,798 per Acre for Fiscal Year 2003-04,and shall increase thereafter,commencing on July 1, 2004 and on July 1 of each Fiscal Year thereafter,by an amount equal to two percent(2%)of the Backup Special Tax for the previous Fiscal Year. b. Zone 1 Undeveloped Property The Maximum Special Tax for Undeveloped Property in Zone 1 of CFD No. 2003-01 (IA No. 1)shall be$4,798 per Acre for Fiscal Year 2003-04,and shall increase thereafter,commencing on July 1, 2004 and on July 1 of each Fiscal Year thereafter,by an amount equal to two percent(2%)of the Maximum Special Tax for the previous Fiscal Year. ZONE 2 a. Zone 2 Developed Property (i). Maximum Special Tax The Maximum Special Tax for each Assessor's Parcel in Zone 2 classified as Developed Property shall be the greater of(i)the amount derived by application of the Assigned Special Tax for Zone 2 or(ii)the amount derived by application of the Backup Special Tax for Zone 2. (ii). Assigned Special Tax The Assigned Special Tax for each Assessor's Parcel of Developed Property in "Zone 2 of CFD No. 2003-01 (IA No. 1)shall equal$36,294 per Acre for Fiscal Year 2003-04,and shall increase thereafter,commencing on July 1, 2004 and on July I of each Fiscal Year thereafter,by an amount equal to two percent(2%)of the Assigned Special Tax for the previous Fiscal Year. Resolution No. 06-181 Page 7 of 10 (iii). Backup Special Tax The Backup Special Tax for each Assessor's Parcel of Developed Property in Zone 2 of CFD No.2003-01 (IA No. 1)shall equal $40,327 per Acre for Fiscal.Year 2003-04,and shall increase thereafter,commencing on July 1, 2004 and on July 1 of each Fiscal Year thereafter,by an amount equal to two percent(2%)of the Backup Special Tax for the previous Fiscal Year. Zone 2 Undeveloped Property The Maximum Special Tax for Undeveloped Property in Zone 2 of CFD No.2003-01 (IA No. 1)shall be$12,817 per Acre for Fiscal Year 2003-04, and shall increase thereafter,commencing on July 1,2004 and on July 1 of each Fiscal Year thereafter,by an amount equal to two percent(2%)of the Maximum Special Tax for the previous Fiscal Year. 3. ZONE 3 a. Zone 3 Developed Property (i). Maximum Special Tax The Maximum Special Tax for each Assessor's Parcel in Zone 3 classified as Developed Property shall be the greater of(i)the amount derived by application of the Assigned Special Tax for Zone 3 or(ii)the amount derived by application of the Backup Special Tax for Zone 3. (ii). Assi ngned Special Tax The Assigned Special Tax for each Assessor's Parcel of Developed Property in Zone 3 of CFD No. 2003-01 (IA No. 1)shall equal $10,272 per Acre for Fiscal Year 2003-04,and shall increase thereafter,commencing on July 1, 2004 and on July 1 of each Fiscal Year thereafter,by an amount equal to two percent(2%)of the Assigned Special Tax for the previous Fiscal Year. (iii). Backup Special Tax The Backup Special Tax for each Assessor's Parcel of Developed Property in Zone 3 of CFD No. 2003-01 (IA No. 1)shall equal $11,413 per Acre for Fiscal Year 2003-04,and shall increase thereafter,commencing on July 1, Resolution No. 06-181 Page 8 of 10 2004 and on July 1 of each Fiscal Year thereafter,by an amount equal to two percent(2%)of the Backup Special Tax for the previous Fiscal Year. b. Zone 3 Undeveloped Property The Maximum Special Tax for Undeveloped Property in Zone 3 of CFD No. 2003-01 (IA No. 1)shall be$11,413 per Acre for Fiscal Year 2003-04,and shall increase thereafter, commencing on July 1,2004 and on July 1 of each Fiscal Year thereafter,by an amount equal to two percent(2%)of the Maximum Special Tax for the previous Fiscal Year. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX 1. ZONE 1 Commencing with Fiscal Year 2003-04 and for each following Fiscal Year,the Council shall determine the Zone 1 Special Tax Requirement and levy the Special Tax in Zone 1 until the amount of Special Taxes levied in Zone I is equal to the Zone 1 Special Tax Requirement. The Special Tax shall be levied in Zone 1 each Fiscal Year as follows: First: The Special Tax shall be levied on each Assessor's Parcel of Developed Property in Zone 1 in an amount equal to 100%of the Assigned Special Tax for Developed Property; Second: If additional monies are needed to satisfy the Zone 1 Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property in Zone 1 at up to 100%of the Maximum Special Tax for Undeveloped Property; Third: If additional monies are needed to satisfy the Zone 1 Special Tax Requirement after the first two steps have been completed,then the levy of the Special Tax on each Assessor's Parcel of Developed Property in Zone 1 whose Maximum Special Tax is equal to the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor's Parcel. Notwithstanding the above, the Council may in any Fiscal Year levy Proportionately less than 100% of the Assigned Special Tax in step one (above) when the Council no longer must levy a Special Tax in Zone 1 pursuant to steps two and three above,and (i) all authorized CFD No. 2003-01 (IA No. 1) Bonds have already been issued, or(ii)the Council has covenanted that it will not issue any additional CFD No. 2003-01 (IA No. 1) Bonds (except refunding bonds) to be supported by Special Taxes levied under this Rate and Method of Apportionment. Resolution No. 06-181 Page 9 of 10 Further notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent as a consequence of delinquency or default by the owner of any other Assessor's Parcel within Zone 1, except for those Residential Properties whose owners are also delinquent or in default on their Special Tax payments for one or more other properties within Zone 1. 2. ZONE 2 Commencing with Fiscal Year 2003-04 and for each following Fiscal Year, the Council shall determine the Zone 2 Special Tax Requirement and levy the Special Tax in Zone 2 until the amount of Special Taxes levied in Zone 2 is equal to the Zone 2 Special Tax Requirement. The Special Tax shall be levied in Zone 2 each Fiscal Year as follows: First: The Special Tax shall be levied on each Assessor's Parcel of Developed Property in Zone 2 in an amount equal to 100% of the Assigned Special Tax for Developed Property; Second: If additional monies are needed to satisfy the Zone 2 Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property in Zone 2 at up to 100%of the Maximum Special Tax for Undeveloped Property; Proportionately from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor's Parcel. Notwithstanding the above, the Council may in any Fiscal Year levy Proportionately less than 100% of the Assigned Special Tax in step one (above) when the Council no longer must levy a Special Tax in Zone 2 pursuant to steps two and three above, and(i) all authorized CFD No. 2003-01 (IA No. 1) Bonds have already been issued, or (ii)the Council has covenanted that it will not issue any additional CFD No. 2003-01 (IA No. 1) Bonds (except refunding bonds) to be supported by Special Taxes levied under this Rate and Method of Apportionment. 3. ZONE 3 Commencing with Fiscal Year 2003-04 and for each following Fiscal Year, the Council shall determine the Zone 3 Special Tax Requirement and levy the Special Tax in Zone 3 until the amount of Special Taxes levied in Zone 3 is equal to the Zone 3 Special Tax Requirement. The Special Tax shall be levied in Zone 3 each Fiscal Year as follows: Resolution No. 06-181 Page 10 of 10 First: The Special Tax shall be levied on each Assessor's Parcel of Developed Property in Zone 3 in an amount equal to 100% of the Assigned Special Tax for Developed Property; Second: If additional monies are needed to satisfy the Zone 3 Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property in Zone 3 at up to 100%of the Maximum Special Tax for Undeveloped Property; Third: If additional monies are needed to satisfy the Zone 3 Special Tax Requirement after the first two steps have been completed,then the levy of the Special Tax on each Assessor's Parcel of Developed Property in Zone 3 whose Maximum Special Tax is equal to the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor's Parcel. Notwithstanding the above, the Council may in any Fiscal Year levy Proportionately less than 100% of the Assigned Special Tax in step one (above) when the Council no longer must levy a Special Tax in Zone 3 pursuant to steps two and three above, and(i) all authorized CFD No. 2003-01 (IA No. 1) Bonds have already been issued, or(ii)the Council has covenanted that it will not issue any additional CFD No. 2003-01 (IA No. 1) Bonds (except refunding bonds) to be supported by Special Taxes levied under this Rate and Method of Apportionment. EXEMPTIONS 1. ZONE 1 No Special Tax shall be levied on Public Property in Zone 1. 2. ZONE 2 No Special Tax shall be-levied on Public Property in Zone 2. In addition, no Special Tax shall be levied on Privately Owned Exempt Parking Property in Zone 2. Furthermore, no Special Tax shall be levied on up to 10.56 Acres of Privately Owned Specific Retail Property in Zone 2. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which property in Zone 2 becomes Privately Owned Specific Retail Property. If the total number of Acres of Privately Owned Specific Retail Property exceeds the amount stated above, then the Acres exceeding such total shall be taxed at the applicable rates for Developed Property for Zone 2 as set forth in Section C above and to the extent set forth in Section D above. 3. ZONE 3 No Special Tax shall be levied on Public Property in Zone 3.