HomeMy WebLinkAbout06-328 - Resolutions RESOLUTION NO. 06-328
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO CUCAMONGA, CALIFORNIA, DETERMINING
NECESSITY TO INCUR A BONDED INDEBTEDNESS FOR
COMMUNITY FACILITIES DISTRICT NO. 2006-02 (AMADOR
ON ROUTE 66), SUBMITTING TO THE QUALIFIED ELECTORS
OF SUCH COMMUNITY FACILITIES DISTRICT SEPARATE
PROPOSITIONS TO AUTHORIZE THE LEVY OF A SPECIAL
TAX THEREIN, TO AUTHORIZE SUCH COMMUNITY
FACILITIES DISTRICT TO INCUR A BONDED INDEBTEDNESS
SECURED BY THE LEVY OF SUCH SPECIAL TAX TO
FINANCE CERTAIN TYPES OF PUBLIC FACILITIES AND TO
ESTABLISH AN APPROPRIATIONS LIMIT FOR SUCH
COMMUNITY FACILITIES DISTRICT, AND GIVING NOTICE
THEREON
WHEREAS, the City Council (the "City Council') of the City of Rancho
Cucamonga (the "City") has received a petition from the owners and developer of certain
property in the City (the "Owner') requesting that the City Council conduct proceedings pursuant
to Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the
California Government Code, commonly known as the "Mello-Roos Community Facilities Act of
1982," for the establishment of a community facilities district and the issuance and sale of bonds
for the financing of certain public facilities which are necessary to meet increased demands
placed upon the City as a result of development which will occur within said proposed
community facilities district and that the proposed community facilities district be authorized to
issue bonds and incur a bonded indebtedness for such purposes in the aggregate principal
amount of$5,800,000; and
WHEREAS, pursuant to Section 53321 of the California Government Code, the
City Council has adopted a resolution declaring its intention to establish proposed Community
Facilities District No. 2006-02 (Amador on Route 66) (the "District') for the purpose of financing
the design, construction and acquisition of such public facilities for the property to be included
therein; and
WHEREAS, at this time the City Council desires to proceed to make the
determination of necessity to incur a bonded indebtedness for the District, to declare the
purposes for such debt, and to authorize the submittal to the qualified electors of the District,
being the landowners of the District, of a proposition to authorize the District to incur such
indebtedness all as authorized and required by the Act;
WHEREAS, the City Council further desires to authorize the submittal of
additional propositions to such qualified electors of the District to (a) authorize the levy of
special taxes within the District, and (b) to establish an appropriation limit for the District;
WHEREAS, all of the qualified electors of the District have waived the time limits
specified in the Act pertaining to the conduct of the election and the requirements for impartial
legal analysis and arguments have also been waived by the unanimous consent of the qualified
electors of the District; and
Resolution No. 06-328
Page 2 of 22
WHEREAS, the City Clerk, as the Election Official, has concurred in the
shortening of time for conducting the election.
NOW, THEREFORE, BE IT RESOLVED AND DETERMINED by the City
Council of the City of Rancho Cucamonga as follows:
SECTION 1: RECITALS. The above recitals are all true and correct.
SECTION 2: NECESSITY TO INCUR BONDED INDEBTEDNESS. The City
Council hereby expressly declares and states that it is necessary
to incur a bonded indebtedness of the District as authorized under
the terms and provisions of the Act, in order to finance the public
facilities described in Exhibit A attached hereto and incorporated
herein by this reference (the "Facilities") which are necessary to
meet increased demands placed upon the City as a result of
development which will occur within the District.
SECTION 3: BOND INDEBTEDNESS. The specific purposes for the proposed
bonded indebtedness are as follows:
To finance the costs of the acquisition or construction of
the Facilities, appurtenances and appurtenant work and
any and all of those applicable incidental costs described
in and authorized by Government Code Section 53345.3.
SECTION 4: TERRITORY TO PAY FOR BONDED INDEBTEDNESS. This City
Council determines that the property within the entire District will
pay for the bonded indebtedness referred to in Section 3 above. A
general description of the District is as follows:
All property within the boundaries of Community Facilities
District No. 2006-02 (Amador on Route 66), as shown on a
map of the boundaries of such District as previously
approved by the City Council, such map designated by the
name of this District, a copy of which is on file in the Office
of the City Clerk.
SECTION 5: BOND AMOUNT. The amount of the proposed bonded
indebtedness, including the cost of the Facilities, together with all
incidental expenses, shall not exceed $3,100,000.
Resolution No. 06-328
Page 3 of 22
SECTION 6: BOND TERM. This City Council hereby further determines that
the maximum term of bonds and/or any series shall not exceed
forty (40) years, and such bonds may be issued in differing series,
at differing times. The maximum rate of interest to be paid on
such bonds may not exceed the greater of either twelve percent
(12%) per annum or the maximum rate permitted by law at the
time of sale of any of such bonds. The bonds, except where other
funds are made available, shall be paid exclusively from the
annual levy of the special tax within the District, and are not
secured by any other taxing power or funds of the District or the
City.
SECTION 7: 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 applicable
specific purposes set forth in the Section 3.
B. The proceeds of any such bonded indebtedness shall be
applied only to the applicable specific purposes identified in
Section 3.
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.
SECTION 8: ELECTION. The proposition related to the incurring of the bonded
indebtedness shall be submitted to the appropriate qualified
voters, together with ballot propositions to authorize the levy of
special taxes within the District and to establish an appropriations
limit for the District, at a special election to be held on September
20, 2006, and such election shall be a special election to be
conducted by the City Clerk (the "Election Official'). If the
proposition for the levy of the special tax and the proposition for
incurring the bonded indebtedness receives the approval of two-
thirds (2/3) or more of the votes cast on each respective
proposition, bonds may be authorized, issued and sold for the
Resolution No. 06-328
Page 4 of 22
applicable purposes set forth herein and the applicable special tax
may be levied as provided in "Resolution of the City Council of the
City of Rancho Cucamonga Forming and Establishing Community
Facilities District No. 2006-02 (Amador on Route 66) and
Authorizing the Submittal of Levy of Special Taxes to the Qualified
Electors Thereof." If the proposition to establish the appropriations
limit for the District receives the approval of a majority of the votes
cast on such proposition, such appropriations limit shall be
established.
SECTION 9: BALLOTS. The ballot proposals to be submitted to the qualified
voters of the District at the election shall generally be as follows:
PROPOSITION A
Shall the City of Rancho Cucamonga Community Facilities District
No. 2006-02 (Amador on Route 66), subject to accountability
measures set forth in California government Code section
50075.1, levy a special tax throughout such district pursuant to the
rate and method of apportionment thereof set forth in Exhibit A to
this ballot for the purposes of paying debt service on bonds of
such district, replenishing the reserve fund for such bonds, paying
costs of administering such indebtedness and such district and
paying directly for the public facilities described in Exhibit B to this
ballot?
PROPOSITION B
Shall the City of Rancho Cucamonga Community Facilities District
No. 2006-02 ( Amador on Route 66), subject to accountability
measures set forth in California Government Code section 53410
and following, incur a bonded indebtedness of such district in an
amount not to exceed $3,100,000 for the public facilities described
in Exhibit B to this ballot?
PROPOSITION C
Shall the City of Rancho Cucamonga Community Facilities District
No. 2006-02 (Amador on Route 66) establish an Article XIIIB
appropriations limit equal to $3,100,000?
SECTION 10: VOTE. The appropriate mark placed on the line in front of the
word "YES" shall be counted in favor of the adoption of the
proposition, and the appropriate mark placed on the line in front of
the word "NO" in the manner as authorized, shall be counted
against the adoption of such proposition.
Resolution No. 06-328
Page 5 of 22
SECTION 11: ELECTION PROCEDURE. The Election Official is hereby
authorized to take any and all steps necessary for the holding of
such election. The Election Official shall perform and render all
services and proceedings incidental to and connected with the
conduct of the election, which services shall include, but not be
limited to, the following activities as are appropriate to the election:
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.
D. Cause the official ballots to be delivered to the qualified
electors or their authorized representatives, as required by
law.
E. Receive the returns of the election and supplies.
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 result of services performed
by 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.
Please see the following page
for formal adoption,certification and signatures
Resolution No. 06-328
Page 6 of 22
PASSED, APPROVED, AND ADOPTED this 18`h day of October 2006.
AYES: Alexander, Gutierrez, Michael, Spagnolo, Williams
NOES: None
ABSENT: None
ABSTAINED: None
William J. Ale nder, Mayor
ATTEST:
y kw
Kat ryn L. Sco , CM , Secretary
I, KATHRYN L. SCOTT, DEPUTY SECRETARY, 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 181h day of October 2006.
Executed this 19`h day of October 2006, at Rancho Cucamonga, California.
Kat ryn L. 8cott,tMC, Secretary
Resolution No. 06-328
Page 7 of 22
EXHIBIT A
DESCRIPTION OF PUBLIC FACILITIES
The public facilities proposed to be financed by the District are generally described as follows:
1. Facilities authorized to be financed from the proceeds of the following City of Rancho
Cucamonga fees:
(a) Transportation fee;
(b) Beautification fee;
(c) Parks and Recreation Facility fee;
(d) Drainage fee.
2. Facilities authorized to be financed from the proceeds of the following Cucamonga
Valley Water District fees:
(a) Water capacity fee;
(b) Water meter & box charge;
(c) Sewer capacity fee; and
(d) Sewer connection fee.
3. Facilities authorized to be financed from the proceeds of Inland Empire Utility Agency
fees.
4. Street improvements.
5. Landscaping improvements located within public rights-of-way.
6. Drainage improvements.
7. Water improvements.
8. Sewer improvements.
Resolution No. 06-328
Page 8 of 22
RATE AND METHOD OF APPORTIONMENT
FOR CITY OF RANCHO CUCAMONGA
COMMUNITY FACILITIES DISTRICT NO. 2006-02
(AMADOR ON ROUTE 66)
A Special Tax hereinafter defined shall be levied on all Assessor's Parcels of Taxable Property in
City of Rancho Cucamonga Community Facilities District No. 2006-02 (Amador on Route 66)
("CFD No. 2006-02") and collected each Fiscal Year commencing in Fiscal Year 2006-07, in an
amount determined through the application of this Rate and Method of Apportionment as described
below. All of the real property in CFD No. 2006-02,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 or
determined from the applicable Assessor's Parcel Map. Notwithstanding the foregoing,the
Acreage attributable to a Condominium shall be computed by the CFD Administrator by
dividing the total.Acreage for the Final Subdivision in which the Condominium is located,
less the Acreage for any Property Owner Association Property and/or Public Property,by the
total number of Condominiums to be constructed within such Final Subdivision as
determined from the applicable Condominium Plan.
"Act"means the Mello-Roos Community Facilities Act of 1982,as amended,being Chapter
2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means the following actual or reasonably estimated costs
directly related to the administration of CFD No. 2006-02: 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 Fiscal Agent;the costs
of the Fiscal Agent(including its legal counsel)in the discharge of the duties required of it
under the Fiscal Agent Agreement;the costs to the City,CFD No.2006-02 or any designee
thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No.
2006-02 or any designee thereof of complying with disclosure requirements applicable to
CFD No.2006-02 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.
2006-02 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.2006-02 for any other administrative purposes of CFD No.
2006-02, including attorney's fees and other costs related to commencing and pursuing to
completion any foreclosure of delinquent Special Taxes.
City of Rancho Cucamonga(Amador on Route 66) August 3,2006
CFD No.2006-02 Page 1
Resolution No. 06-328
Page 9 of 22
"Assessor's Parcel" means a lot or parcel, including but not limited to Condominiums, to
which an Assessor's parcel number is assigned as determined from an Assessor's Parcel Map
or the applicable assessment roll.
"Assessor's Parcel Map" means an official map of the County Assessor of the County
designating parcels by Assessor's Parcel number.
"Authorized Facilities" means those improvements eligible to be financed by CFD No.
2006-02 under the Act and authorized to be financed pursuant to the Resolution of
Formation.
"CFD Administrator" means an official of the City, or designee thereof, responsible for
determining the Special Tax Requirement and providing for the levy and collection of the
Special Taxes.
"CFD No.2006-02"means City of Rancho Cucamonga Community Facilities District No.
2006-02 (Amador on Route 66).
"CFD No.2006-02 Bonds" means any bonds or other debt(as defined in Section 53317(d)
of the Act),whether in one or more series,issued by or on behalf of CFD No.2006702 under
the Act.
"City" means the City of Rancho Cucamonga.
"Condominium"means a unit meeting the statutory definition of a condominium contained
in the California Civil Code, Section 1351, and for which a condominium plan has been
recorded pursuant to California Civil Code, Section 1352.
"Condominium Plan"means a condominium plan as set forth in the California Civil Code,
Section 1352.
"Council" means the City Council of the City of Rancho Cucamonga, acting as the
legislative body of CFD No. 2006-02.
"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 a
building permit for new construction was issued after January 1, 2006 and on or before
March 1 of the Fiscal Year preceding the Fiscal Year for which the Special Taxes are being
levied, provided that a Final Subdivision for such Assessor's Parcel was recorded on or
before January 1 of the Fiscal Year preceding the Fiscal Year for which the Special Taxes
are being levied.
"Final Subdivision"means a subdivision of property by recordation of a(i) final map, or
portion thereof, approved by the City pursuant to the Subdivision Map Act (California
City ojRancho Cucamonga(Amador on Route 66) August 3,2006
CFD No.2006-02 Page 2
Resolution No. 06-328
Page 10 of 22
Government Code Section 64410 et seq.) that creates individual lots for which building
permits may be issued, or(ii) lot line adjustment approved by the City.
"Fiscal Agent" means the trustee or fiscal agent under the Fiscal Agent Agreement.
"Fiscal Agent Agreement"means the fiscal agent agreement,bond indenture,resolution or
other instrument pursuant to which CFD No. 2006-02 Bonds are issued, as modified,
amended and/or supplemented from time to time.
"Fiscal Year" means the period starting July 1 and ending on the following June 30.
"Land Use Class" means any of the classes listed in Table 1 below.
"Maximum Special Tax"means the maximum Special Tax,determined in accordance with
Section C below that can be levied in any Fiscal Year on any Assessor's Parcel of Taxable
Property.
"Non-Residential Property"means all Assessor's Parcels of Developed Property for which
a building permit has been issued by the City for the purpose of constructing one or more
non-residential facilities, and which is not otherwise Residential Property.
"Outstanding Bonds" means all CFD No. 2006-02 Bonds which are deemed to be
outstanding under the Fiscal Agent Agreement.
"Property Owner Association Property" means, for each Fiscal Year, (i) any property
within the boundaries of CFD No.2006-02 that was owned by a property owner association,
including any master or sub-association, as of January 1 of the prior Fiscal Year, (ii) any
property located in a Final Subdivision that was recorded as of the January 1 preceding the
Fiscal Year in which the Special Tax is being levied and which, as determined from such
Final Subdivision, is or will be open space, a common area recreation facility, or a private
street, or(iii) any property which, as of the January 1 preceding the Fiscal Year for which
the Special Tax is being levied, has been conveyed, irrevocably dedicated, or irrevocably
offered to a property owner's association,including any master or sub-association,provided
such conveyance, dedication, or offer is submitted to the CFD Administrator by January 1
preceding the Fiscal Year for which the Special Tax is being levied. Notwithstanding the
preceding, Property Owner Association Property shall not include any property on which
Condominiums are or will be located.
"Proportionately"means, for Developed Property,that the ratio of the actual Special Tax
levy to the Maximum Special Tax is equal for all Assessor's Parcels of Developed Property.
For Undeveloped Property, "Proportionately"means that the ratio of the actual Special Tax
levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor's Parcels of
Undeveloped Property. The term "Proportionately" shall be similarly applied to other
categories of Taxable Property as listed in Section E below.
"Public Property" means property within the boundaries of CFD No. 2006-02 owned by,
irrevocably offered or dedicated to,or for which an easement for purposes of public right-of-
City of Rancho Cucamonga(Amador on Route 66) August 3,2006
CFD No. 2006-02 Page 3
Resolution No. 06-328
Page 11 of 22
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 otherpublic agency,
provided that any property owned by a public agency and leased by such 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. Such determination shall be final following the issuance of a certificate of
occupancy for the residential dwelling unit located on such Assessor's Parcel.
"Residential Property" means all Assessor's Parcels of Developed Property for which a
building permit has been issued by the City for the purpose of constructing one or more
residential dwelling units.
"Resolution of Formation" means the resolution of formation adopted pursuant to
Government Code Section 53325.1 for CFD No. 2006-02.
"Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor's
Parcel of Taxable Property within CFD No. 2006-02 to fund the Special Tax Requirement.
"Special Tax Buydown"means a mandatory bond principal buydown payment made by a
property owner to reduce the amount of Outstanding Bonds to compensate for a loss of
Special Tax revenues resulting from the construction of fewer residential dwelling units,
smaller residential dwelling units, or a modified amount of non-residential Acreage, as
determined in accordance with Section D below.
"Special Tax Requirement" means that amount required in any Fiscal Year for CFD No.
2006-02 to: (i)pay debt service on all Outstanding Bonds;(ii)pay periodic costs on the CFD
No.2006-02 Bonds,including but not limited to,credit enhancement and rebate payments on
the CFD No. 2006-02 Bonds due in the calendar year commencing in such Fiscal Year;(iii)
pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any
reserve funds for all Outstanding Bonds; (v)pay directly for acquisition or construction of
Authorized Facilities to the extent that the inclusion of such amount does not increase the
Special Tax levy on Undeveloped Property;(vi)pay for reasonably anticipated Special Tax
delinquencies based on the delinquency rate for the Special Tax levy in the previous Fiscal
Year; less (vii) a credit for funds available to reduce the annual Special Tax levy, as
determined by the CFD Administrator pursuant to the Fiscal Agent Agreement.
"State" means the State of California.
"Taxable Property"means all of the Assessor's Parcels within the boundaries of CFD No.
2006-02 which are not exempt from the Special Tax pursuant to law or Section F below.
City of Rancho Cucamonga(Amador on Route 66) August 3,1006
CFD No.2006-02 Page 4
Resolution No. 06-328
Page 12 of 22
"Taxable Property Owner Association Property" means all Assessor's Parcels of
Property Owner Association Property that are not exempt from the levy of the Special Tax
pursuant to the provisions of Section F below.
"Taxable Public Property" means all Assessor's Parcels of Public Property that are not
exempt from the levy of the Special Tax pursuant to the provisions of Section F below.
"Undeveloped Property" means,for each Fiscal Year,all Taxable Property not classified
as Developed Property, Taxable Public Property or Taxable Property Owner Association
Property.
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, all Taxable Property within CFD No. 2006-02 shall be 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 Rate and Method of Apportionment determined pursuant to Sections C and E below.
Residential Property shall be assigned to Land Use Classes 1 through 4, as listed in Table 1
below, and Non-Residential Property shall be assigned to Land Use Class 5.
The Maximum Special Tax for each Assessor's Parcel of Residential Property shall be based
on the Residential Floor Area of the residential dwelling unit(s)located on such Assessor's
Parcel. The Maximum Special Tax for each Assessor's Parcel of Non-Residential Property
shall be based on the Acreage of such 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 for each Assessor's Parcel classified as
Developed Property is shown below in Table 1.
City ofBancho Cucamonga(Amador on Route 66) August 3,2006
CFD No.2006-02 Page 5
Resolution No. 06-328
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TABLE 1
Maximum Special Tax for Developed Property in
Community Facilities District No. 2006-02
,Land Use.. Residential Floor Maximum
-:ClassDescription Area Special Tax
I Residential Property More than 1,850 SF $2,816 per unit
2 Residential Property 1,601 — 1,850 SF $2,697 per unit
3 Residential Property 1,351 — 1,600 SF $2,469 per unit
4 Residential Property Less than 1,351 SF E$2,241 per unit
5 Non-Residential Property NA $64,747 per Acre
(b) 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 such 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, or equivalent entitlement, designated for
each land use as determined by reference to the site plan approved by the
City 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
The Maximum Special Tax for Undeveloped Property, Taxable Public
Property,and Taxable Property Owner Association Property shall be$71,889
per Acre.
D. SPECIAL TAX BUYDOWN
All of the requirements of this Section D, which describes the need for a Special Tax
Buydown that may result from a change in development as determined pursuant to this
Section D,shall only apply after the issuance of the first series of CFD No.2006-02 Bonds.
Prior to the issuance of the first series of CFD No. 2006-02 Bonds,the terms of the Special
Tax Buydown shall not apply.
The following additional definitions apply to this Section D:
City of Rancho Cucamonga(Amador on Route 66) August 3,2006
CFD No.2006-01 Page 6
Resolution No. 06-328
Page 14 of 22
"Certificate of Satisfaction of Special Tax Buydown" means a certificate from the CFD
Administrator staring that the property described in such certificate has met the Special Tax
Buydown Requirement for such property as calculated under this Section D.
"Letter of Compliance"means a letter from the CFD Administrator allowing the issuance
of building permits based on the prior submittal of a request for Letter of Compliance by a
property owner.
"Special Tax Buydown Requirement" means the total amount of Special Tax Buydown
necessary to be prepaid in order to permit the issuance of building permits listed in a request
for Letter of Compliance, as calculated under this Section D.
"Update Property" means an Assessor's Parcel of Undeveloped Property for which a
building permit has been issued. For purposes of all calculations in this Section D,Update
Property shall be taxed as if it were already Developed Property during the current Fiscal
Year.
1. Request for Letter of Compliance
After the issuance of the first series of CFD No.2006-02 Bonds,a property owner shall,as a
precondition to the issuance of a building permit for construction of any residential and/or
non-residential development for a specific Assessor's Parcel or lot, submit a Letter of
Compliance for the construction of the development on such Assessor's Parcel or lot. If a
Letter of Compliance has not yet been issued,the property owner must first request a Letter
of Compliance from the CFD Administrator. The request from the property owner shall
contain a list of all building permits for which the property owner is requesting a Letter of
Compliance,which may exceed the number of building permit issuances being applied for at
that time. The property owner shall also submit the Assessor's Parcels or tract and lot
numbers on which the construction is to take place,and the Residential Floor Area(for each
residential dwelling unit) or the Acreage (for each non-residential parcel) associated with
each prospective building permit.
2. Issuance of Letter of Compliance
Upon the receipt of a request for a Letter of Compliance,the CFD Administrator shall assign
each building permit identified in such request to Land Use Classes 1 through 5 as listed in
Table 2 below based on the type of use and, if applicable, the Residential Floor Area
identified for each such building permit. If the CFD Administrator determines (i) that the
number of building permits requested for each Land Use Class,plus those building permits
previously issued for each Land Use Class, will not cause the total number of residential
dwelling units or non-residential Acreage within any such Land Use Class to exceed the
number of residential dwelling units or Acreage for such Land Use Class identified in Table
2 below, and (ii) that the total number of residential dwelling units anticipated to be
constructed pursuant to the current development plan for CFD No.2006-02 shall not be less
than 99 and the amount of non-residential Acreage will not be more than 0.0 Acres, then a
Letter of Compliance shall be submitted to the City and/or property owner by the CFD
Administrator approving the issuance of the requested building permits for the subject
City of Rancho Cucamonga(Amador on Route 66) August 3,2006
CFD No.2006-02 Page 7
Resolution No. 06-328
Page 15 of 22
property,and such subject property shall no longer be subject to the terms of the Special Tax
Buydown. This Letter of Compliance shall be submitted to the City and/or property owner
by the CFD Administrator within ten days of the submittal of the request for Letter of
Compliance by the property owner. However,should(i)the building permits requested,plus
those previously issued, cause the total number of residential dwelling units or non-
residential Acreage within any such Land Use Class to exceed the number of residential
dwelling units or non-residential Acreage for such Land Use Class identified in Table 2
below, or(ii)the CFD Administrator determine that changes in the development plan may
cause a decrease in the number of residential dwelling units within CFD No. 2006-02 to
below 99 residential dwelling units or an increase in the amount of non-residential Acreage
to above 0.0 Acres, then a Letter of Compliance will not be issued and the CFD
Administrator will be directed to determine if a Special Tax Buydown shall be required. The
number of residential dwelling units and non-residential Acreage,as listed in Table 2 below,
may be updated by the CFD Administrator prior to the issuance of the first series of CFD No.
2006-02 Bonds.
TABLE 2
Expected Residential Dwelling Units per Land Use Class and Non-Residential Acreage
Community Facilities District No.2006-02
Land Use ', Numberof
Class ` Description Residential Floor Area ;.Units/Acres
1 Residential Property More than 1,850 SF 33 units
2 Residential Property 1,601 — 1,850 SF 33 units
3 Residential Property 1,351 — 1,600 SF 0 units
q Residential Property Less than 1,351 SF 33 units
5 Non-Rcsidential Property NA 0.00 Acres
3. Calculation of Special Tax Buydown
If a Special Tax Buydown calculation is required as determined by the CFD Administrator
pursuant to paragraph 2 above,the CFD Administrator shall review the current development
plan for CFD No.2006-02 in consultation with the current property owners for all remaining
Undeveloped Property in CFD No.2006-02,and shall prepare an updated version of Table 2
identifying the revised number of residential dwelling units or non-residential Acreage
anticipated within each Land Use Class. The CFD Administrator shall not be responsible for
any delays in preparing the updated Table 2 that results from a refusal on the part of one or
more current property owners of Undeveloped Property to provide information on their
future development.
The CFD Administrator shall then review the updated Table 2 and determine the Special Tax
Buydown Requirement, if any, to be applied to the property identified in the request for
City of Rancho Cucamonga(Amador on Route 66) August 3,2006 -
CFD No.2006-02 Page 8
Resolution No. 06-328
Page 16 of 22
Letter of Compliance to assure the CFD's ability to levy special taxes equal to 110% debt
service coverage on the Outstanding Bonds,plus Administrative Expenses. The calculations
shall be undertaken by the CFD Administrator,based on the data in the updated Table 2,as
follows:
Step 1. Compute the sum of the Maximum Special Tax authorized to be levied on all
Developed Property and Update Property within CFD No.2006-02,plus the
sum of the Maximum Special Tax authorized to be levied on all future
development as identified in the current development plan as determined by
the CFD Administrator in consultation with the property owner(s).
Step 2. Determine the amount of Special Tax required to provide 110%debt service
coverage on the Outstanding Bonds,plus any other payments included in the
Special Tax Requirement.
Step 3. If the total sum computed pursuant to step 1 is greater than or equal to the
amount computed pursuant to step 2,then no Special Tax Buydown will be
required and a Letter of Compliance shall immediately be issued by the CFD
Administrator for all of the building permits currently being requested. If the
total sum computed pursuant to step I is less than the amount computed
pursuant to step 2,then continue to step 4..
Step 4. Determine the Maximum Special Tax shortfall by subtracting the total sum
computed pursuant to step 1 from the amount computed pursuant to step 2.
Divide this Maximum Special Tax shortfall by the amount computed
pursuant to step 2.
Step 5. The Special Tax Buydown Requirement shall be calculated using the
prepayment formula described in Section I,with the following exceptions:(i)
skip Paragraphs 1, 2 and 3, and begin with Paragraph 4; (ii) the Bond
Redemption Amount in Paragraph 4 of the prepayment formula described in
Section I shall equal the product of the quotient computed pursuant to step 4
above times the Previously Issued Bonds, as defined in Section I; (iii) the
Capitalized Interest Credit described in Paragraph 12 of Section I shall be$0;
and(iv)any payments of the Special Tax Buydown(less Administrative Fees
and Expenses) shall be disbursed pursuant to the Fiscal Agent Agreement.
The Special Tax Buydown computed under step 5 shall be billed directly to the property
owner of each Assessor's Parcel identified in the request for Letter of Compliance and shall
be due within 30 days of the billing date. If the Special Tax Buydown is not paid within 45
days of the billing date,a delinquent penalty of 10 percent shall be added to the Special Tax
Buydown. Upon receipt of the Special Tax Buydown payment,the CFD Administrator shall
issue a Letter of Compliance and a Certificate of Satisfaction of Special Tax Buydown for
the subject property,and such subject property shall no longer be subject to the terms of the
Special Tax Buydown.
City of Rancho Cucamonga(Amador on Route 66) August 3,2006
CFD No.2006-02 Page 9
Resolution No. 06-328
Page 17 of 22
4. Costs and Expenses Related to Implementation of Special Tax Buydown
The property owner of each Assessor's Parcel identified in the request for Letter of
Compliance shall pay all costs of the CFD Administrator or other consultants required to
review the application for building permits,calculate the Special Tax Buydown,issue Letters
of Compliance or any other actions required under Section D. Such payments shall be due
30 days after receipt of invoice by such property owner. A deposit may be required by the
CFD Administrator prior to undertaking work related to the Special Tax Buydown.
E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2006-07 and for each following Fiscal Year,the Council shall
determine the Special Tax Requirement and shall levy the Special Tax until the total Special
Tax levy equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal
Year as follows:
First: The Special Tax shall be levied on each Assessor's Parcel of Developed Property in an
amount equal to 100%of the applicable Maximum Special Tax;
Second: If additional monies are needed to satisfy the 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 at up to 100%of the Maximum Special Tax for
Undeveloped Property;
Third: If additional monies are needed to satisfy the Special Tax Requirement after the first
two steps have been completed,then the Special Tax 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 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 Maximum Special Tax in step one (above), when (i) the Council is no
longer required to levy the Special Tax pursuant to steps two and three above in order to
meet the Special Tax Requirement; and (ii) all authorized CFD No. 2006-02 Bonds have
already been issued or the Council has covenanted that it will not issue any additional CFD
No. 2006-02 Bonds (except refunding bonds)to be supported by the Special Tax.
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
CFD No. 2006-02.
F. EXEMPTIONS
No Special Tax shall be levied on up to 6.0 Acres of Public Property and/or Property Owner
Association Property. Tax-exempt status will be assigned by the CFD Administrator in the
City of Rancho Cucamonga(Amador on Route 66) August 3,1006
CFD No.2006-02 Page 10
Resolution No. 06-328
Page 18 of 22
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 under this section shall be subject to the levy of the Special Tax and shall be taxed
Proportionately as part of the third step in Section E above,at up to 100%of the applicable
Maximum Special Tax for Taxable Public Property and Taxable Property Owner Association
Property.
G. 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. 2006-02. The CFD
Administrator shall review the appeal and if the CFD Administrator concurs,the amount of
the Special Tax levied shall be appropriately modified through an adjustment to the Special
Tax levy in the following Fiscal Year. No refunds shall be given in the current Fiscal Year.
The Council may interpret this 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.
H. MANNER OF COLLECTION
The Special Tax will be collected in the same manner and at the same time as ordinary ad
valorem property taxes; provided, however, that CFD No. 2006-02 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.
I. PREPAYMENT OF SPECIAL TAX
The following additional definition applies to this Section I:
"Previously Issued Bonds" means, for any Fiscal Year, all Outstanding Bonds that are
deemed to be outstanding under the Fiscal Agent Agreement 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 obligation applicable to
an Assessor's Parcel in CFD No.2006-02 may only be prepaid after all authorized CFD No.
2006-02 Bonds have already been issued,or after the Council has covenanted that it will not
issue any additional CFD No. 2006-02 Bonds(except refunding bonds)to be supported by
Special Taxes levied under this Rate and Method of Apportionment. The obligation of the
Assessor's Parcel to pay any Special Tax may be permanently satisfied as described herein,
City ojRancho Cucamonga(Amador on Route 66) August 3,2006
CFD No.2006-02 Page 11
Resolution No. 06-328
Page 19 of 22
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
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 of such Assessor's Parcel. Prepayment must be made not
less than 45 days prior to any redemption date for the CFD No. 2006-02 Bonds to be
redeemed with the proceeds of such prepaid Special Taxes.
The Special Tax 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 Special Tax Prepayment Amount
As'ofthe proposed date of prepayment,the Special Tax Prepayment Amount 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 Maximum
Special Tax 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 Maximum Special Tax 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. Divide the Maximum Special Tax computed pursuant to paragraph 2 by the
estimated Maximum Special Taxes for CFD No. 2006-02 based on the
Developed Property Special Taxes which could be charged in the current
Fiscal Year on all expected development in CFD No.2006-02(as reasonably
determined by the CFD Administrator), excluding any Assessor's Parcels
which have been prepaid; and
4. Multiply the quotient computed pursuant to paragraph 3 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").
City ojRancho Cucamonga(Amador on Route 66) August 3,1006
CFD No.2006-02 Page 12
Resolution No. 06-328
Page 20 of 22
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 Taxes until the earliest
redemption date for the Previously Issued Bonds.
7. Determine the Special Taxes levied on the Assessor's Parcel in the current
Fiscal Year that have not yet been paid.
8. Compute the minimum amount the CFD Administrator reasonably expects to
derive from the reinvestment of the Special Tax Prepayment Amount less the
Administrative Fees and Expenses (defined below) from the date of
prepayment until the redemption date for the Previously Issued Bonds to be
redeemed with the prepayment.
9. Add the amounts computed pursuant to paragraphs 6 and 7 and subtract the
amount computed pursuant to paragraph 8 (the "Defeasance Amount'D.
10. The administrative fees and expenses of CFD No.2006-02 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 CFD No. 2006-02 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 Fiscal
Agent Agreement), 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 Fiscal Agent
Agreement) 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 Fiscal Agent Agreement).
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 quotient computed
pursuant to paragraph 3 by the expected balance in the capitalized interest
fund after such first interest and/or principal payment (the "Capitalized
Interest Credit").
13. The Special Tax 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 "Special Tax Prepayment Amount").
City of Rancho Cucamonga(Amador on Route 66) August 3,2006
CFD No. 2006-02 Page 13
Resolution No. 06-328
Page 21 of 22
From the Special Tax Prepayment Amount,the amounts computed pursuant to paragraphs 4,
5, 9, 10, 11 and 12 shall be deposited into the appropriate fund as established under the
Fiscal Agent Agreement and be used to redeem Previously Issued Bonds, as applicable,or
make scheduled debt service payments or to pay administrative expenses related to the
prepayment of the Special Tax.
The Special Tax Prepayment Amount may be insufficient to redeem a full$5,000 increment
of CFDNo. 2006-02 Bonds. In such cases,the increment above$5,000 or integral multiple
thereof will be retained in the appropriate fund established under the Fiscal Agent
Agreement to be used with the next prepayment of CFD No. 2006-02 Bonds or to make
scheduled debt service payments on such bonds.
Upon confirmation of the payment of the current Fiscal Year's Special Tax levy as
determined under paragraph 7 (above), the CFD Administrator shall remove the current
Fiscal Year's Special Tax levy for such Assessor's Parcel from the County tax rolls. With
respect to any Assessor's Parcel for which the Special Tax obligation is prepaid in
accordance with this Section I, the Council shall cause a suitable notice to be recorded in
compliance with the Act,to indicate the prepayment of Special Taxes and the release of the
Special Tax lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to
pay the Special Tax shall cease.
Notwithstanding the foregoing,no Special Tax prepayment shall be allowed unless, at the
time of such proposed prepayment, the amount of Maximum Special Taxes that may be
levied on Taxable Property within CFD No. 2006-02 (after excluding 6.0 Acres of Public
Property and Property Owner Association Property as set forth in Section F) both prior to
and after the proposed prepayment is at least equal to the sum of(i) the Administrative
Expenses, as defined in Section A above, and (ii) 1.10 times the maximum annual debt
service on all Outstanding Bonds.
J. TERM OF SPECIAL TAX
The Special Tax shall be levied for a period not to exceed fifty years commencing with
Fiscal Year 2006-07, provided however that Special Taxes will cease to be levied in an
earlier Fiscal Year if the CFD Administrator has determined(i)that all required interest and
principal payments on the CFD No. 2006-02 Bonds have been paid;and(ii)all Authorized
Facilities have been constructed.
KACLn3NTS2�RmchoCucarnonga\A=ctor Route 66\RMAVtmador RMA for ROLdoe
City of Rancho Cucamonga(Amador on Route 66) August 3,1006
CFD No.2006-02 Page 14
Resolution No. 06-328
Page 22 of 22
CITY OF RANCHO CUCAMONGA
COMMUNITY FACILITIES DISTRICT NO. 2006-02
(AMADOR ON ROUTE 66)
MAXIMUM SPECIAL TAX FOR DEVELOPED PROPERTY
FISCAL YEAR 2006-2007
Land Use:, Residential Floor Maxrmufi
"Class Description Area SpecialTas ';,:
1 Residential Property More than 1,850 SF $2,816 per unit
2 Residential Property 1,601 - 1,850 SF $2,697 per unit
3 Residential Property 1,351 - 1,600 SF $2,469 per unit
4 Residential Property Less than 1,351 SF $2,241 per unit
5 Non-Residential Property NA $64,747 per Acre