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HomeMy WebLinkAbout06-184 - Resolutions RESOLUTION NO. 06-184 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, PROVIDING FOR THE LEVY OF SPECIAL TAX "A" FOR COMMUNITY FACILITIES DISTRICT NO.2000-03(RANCHO SUMMIT)FOR TAX YEAR 2006- 2007 RECITALS WHEREAS, by its Resolution No. 00-190 adopted on September 20, 2000 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.2000-03 (Rancho Summit) (the "District") and authorized, subject to the approval of the qualified electors of the District, the levy of a special tax ("Special Tax `A"') pursuant to the rate and method of apportionment thereof (the "Rate and Method") for the purpose of financing the acquisition or construction of certain authorized public facilities; and WHEREAS, at an election held on October 11, 2000 the qualified electors of the District unanimously approved the levy of Special Tax"A" pursuant to the Rate and Method; and WHEREAS, in 2005 the City Council initiated proceeding to modify the Rate and Method; and WHEREAS,on June 15,2005,the City Council submitted the proposed modifications to the Rate and Method to the qualified electors of the District; and WHEREAS,on the same day,the qualified electors of the District voted unanimously to authorize the modifications to the Rate and Method (the Rate and Method as modified, the "Amended and Restated Rate and Method"); and WHEREAS, the City Council subsequently enacted Ordinance No. 755 (the "Ordinance")which became effective on August on August 5, 2005, to authorize the levy of Special Tax "A" pursuant to the Amended and Restated Rate and Method; and WHEREAS,the Act provides that the City Council may provide, by resolution,forthe levy of Special Tax "A" for any future tax year; and WHEREAS, the City Council desires to provide for the levy Special Tax"A"for Tax Year 2006-2007 pursuant to the Ordinance. NOW THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1: That the above recitals are all true and correct. Resolution No. 06-184 Page 2 of 12 SECTION 2: That the specific rate and amount of the Special Tax "A" to be collected 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 the Ordinance, and is not in excess of that as previously approved by the qualified electors of the District. SECTION 4: That the proceeds of Special Tax "A" shall be used, in whole or in part, for the following: A. Payment of debt service on all outstanding bonds issued for the District due in calendar year 2007; B. Payment of a proportionate share of administrative expenses related to the bond and the District; C. Payment of any amounts required to replenish the reserve fund established for the bonds; and D. Payment for reasonably anticipated Special Tax "A" delinquencies based on the delinquency rate for Special Tax"A" in the preceding tax year. The proceeds of Special Tax °A" shall be used as set forth above, and shall not be used for any other purpose. SECTION 5: Special Tax"A"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. 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 Special Tax"A," and for the exact rate and amount of said tax, reference is made to the attached Exhibit "A". Resolution No. 06-184 Page 3 of 12 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. PASSED, APPROVED, AND ADOPTED this 7th day of June 2006. AYES: Alexander, Gutierrez, Michael, Spagnolo, Williams NOES: None ABSENT: None ABSTAINED: None William J. AI ander, Mayor ATTEST: zjo-4— 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. '42. 'q &"") Debra J. A a CMC, City Clerk Resolution No. 06-184 Page 4 of 12 CITY OF RANCHO CUCAMONGA COMMUNITY FACILITIES DISTRICT NO. 2000-03 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 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 A and B 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. A. 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. (b). Assigned Special Tax A The Fiscal Year 2006-2007 Assigned Special Tax A for each Land Use Class is shown below in the Table below Resolution No. 06-184 Page 5 of 12 Assigned Special Tax A for Developed Property in City of Rancho Cucamonga Community Facilities District No.2000-03 (Rancho Summit) Fiscal Year 2006-2007 Land Use Description Residential Floor Assessors Parcel Numbers Amount Class Area 4 Residential Property 2,250-2,449 s.f. 22643209,37,50 $ 2,046.00 22644414,21,25 22645205 5 Residential Property 2,450-2,659 s.f. 22643202,05,07, 11, 13-15 $ 2,061.00 22643218,20,22,24,25,28, 22643230,32,34,35,39,43, 22643245,48, 51,52,55 22644401,03,05, 07,09, 10 22644412, 13, 16, 18,23,27,31 22645201,03 6 Residential Property 2,650-2,849 s.f. 22643204,08, 12, 16,26,29,36 $ 2,235.00 22643238,40,42,47,49, 53, 56 22644402,04, 11, 15, 19,24,28 22644430,32 7 Residential Property 2,850-3,049 s.f. 22643201,03,06, 10, 17, 19,21 $ 2,462.00 22643223,27,31,33,41,44,46 22643254, 22644406,08, 17,20,22,26,29 22645202,04 Non-Residential 11 Property I N/A 122610223 $185,226.59 (c).Assigned Special Tax A The Fiscal Year 2006-2007 Assigned Special Tax A, identified in the Table above, shall not be subject to change and shall therefore remain the same in every Fiscal Year. Resolution No. 06-184 Page 6 of 12 (d).Backup Special Tax A The Fiscal Year 2006-2007 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 2006-2007 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 2006-2007 Maximum Special Tax A for Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association Property in Zone I or Zone 2 shall be$14,824 per Acre or portion thereof. (b).Maximum Special Tax The Fiscal Year 2006-2007 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. Resolution No. 06-184 Page 7 of 12 B. METHOD OF APPORTIONMENT OF THE SPECIAL TAX 1. Special Tax A Commencing with Fiscal Year 2006-2007 and for each following Fiscal Year, the Council shall 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. 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 pen-nit 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. Resolution No. 06-184 Page 8 of 12 C. 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. D. 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. E. MANNER OF COLLECTION The Special Tax A 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. F. PREPAYMENT OF SPECIAL TAX A "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 Resolution No. 06-184 Paye 9 of 12 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 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: Parayraph No.: 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 Resolution No. 06-184 Page 10 of 12 (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"). 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"). 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). Resolution No. 06-184 Pace 11 of 12 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,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 C)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. 06-184 Page 12 of 12 G. TERM OF SPECIAL TAX The Special Tax A shall be levied for a period not to exceed fifty years, 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.