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HomeMy WebLinkAbout08-122 - Resolutions RESOLUTION NO. 08-122 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, RE- ESTABLISHING ANNUAL SPECIAL TAX FOR COMMUNITY FACILITIES DISTRICT 2001-01 FOR FISCAL YEAR 2008-2009 (IMPROVEMENT AREA NOS. 1 & 2), SERIES 2001-A Recitals WHEREAS, by its Resolution No. 01-162, adopted on June 20, 2001, 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. 2001-01 (the "District') and established within the District improvement areas designated Improvement Area No. 1 and Improvement Area No. 2 (the "Improvement Areas'); and WHEREAS, at an election held on June 20, 2001, the qualified electors of the Improvement Area No. 1 and Improvement Area No. 2 unanimously approved the levy of a special tax against properties in the Improvement Areas (the "Special Tax"); and WHEREAS, by its Ordinance No. 658 (the "Ordinance"), adopted on July 18, 2001, the City Council authorized the levy of the Special Tax in accordance with the Act; and WHEREAS, on September 18, 2001, the District delivered its $14,240,000 City of Rancho Cucamonga Community Facilities District No. 2001-01 Improvement Area No. 1 and Improvement Area No. 2 Special Tax Bonds Series 2001-A (the "Bonds"); and WHEREAS, in a Fiscal Agent Agreement dated as of August 1, 2001, 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 and Improvement Area No. 2 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, debt service will become due and payable on the Bonds during Fiscal Year 2008-2009 in an amount exceeding funds held by the Fiscal Agent and designated for the payment for such debt service; and WHEREAS, the City Council intends to levy the Special Tax for Fiscal Year 2008-2009 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 2008-2009 by City staff. NOW THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1: That the above recitals are all true and correct. Resolution No. 08-122 Page 2 of 12 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 2008-2009 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 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. 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 expense of making any such collection. Please see the following page for formal adoption,cerlification and signatures Resolution No. 08-122 Page 3 of 12 PASSED, APPROVED, AND ADOPTED this 4`h day of June 2008. AYES: Gutierrez, Michael, Spagnolo, Williams NOES: None ABSENT: Kurth ABSTAINED: None L. Dennis ichael, Mayor Pro em ATTEST: 46t-4r Debra J. Adam da IV MC, 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 4`h day of June 2008. Executed this 5`h day of June 2008, at Rancho Cucamonga, California. Debra J. Ada MC, City Clerk Resolution No 08-122 Page 4 of 12 CITY OF RANCHO CUCAMONGA COMMUNITY FACILITIES DISTRICT NO. 2001-01 (IMPROVEMENT AREA NO. 1 & IMPROVEMENT AREA N0. 2) SERIES 2001-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 2008/2009 CLASSIFICATION OF PARCELS Improvement Area No. 1 Each Fiscal Year, all Taxable Property within Improvement Area No 1 shall be classified as Developed Property, Final Mapped Property, Taxable Property Owner Association Property, Taxable Public Property, or Undeveloped Property, and all such Taxable Property 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 Developed Property (a) Maximum Special Tax The Maximum Special Tax 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 or (n) the amount derived by application of the Backup Special Tax (b) Assigned Special Tax The Assigned Special Tax for each Land Use class is shown in Table 1 Resolution No. 08-122 Page 5 of 12 TABLE 1 Assigned Special Taxes For Developed Property Improvement Area No. 1 Land Use Description Residential Assigned Class Floor Area Special Tax 1 Single Family Property = > 3,250 sq. ft. $2,100 per residential dwelling unit 2 Single Family Property 2,950 to 3,249 sq. ft. $1,684 per residential dwelling unit 3 Single Family Property 2,650 to 2,949 sq. ft. $1,515 per residential dwelling unit 4 Single Family Property 2,350 to 2,649 sq. ft. $1,301 per residential dwelling unit 5 Single Family Property 2,150 to 2,349 sq. ft. $1,217 per residential dwelling unit 6 Single Family Property 1,950 to 2,149 sq. ft. $1,119 per residential dwelling unit 7 Single Family Property < 1,950 sq. ft. $938 per residential dwelling unit 8 Apartment Property Not Applicable $237 per residential dwelling unit 9 Non Residential Property Not Applicable $8,398 per Acre (c). Multiple Land Use Classes In some instances an assessor's Parcel of Developed Property may contain more than one Land Use Class. The Assigned Special tax levied on an Assessor's Parcel shall be the sum of the Assigned Special Taxes for all Land Use Classes located on that Assessor's Parcel. The Maximum Special Tax that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Taxes that can be levied for all Land Use Classes located on that Assessor's Parcel derived by application of the Backup Special Tax. 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 Class 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. (c) Backup Special Tax The Backup Special Tax shall equal $10, 768 per acre. Resolution No. 08-122 Page 6 of 11 2. Final Mapped Property (a). Intermediate Special Tax The Intermediate Special Tax shall only be levied on Assessor's Parcels of the Final Mapped Property. To compute the Intermediate Special Tax attributable to a Final Subdivision, the Acreage of all Developed Property and Final Mapped Property within that Final Subdivision shall be multiplied by $7,500. The Intermediate Special Tax for each Assessor's Parcel of Final Mapped Property planned for residential development shall then be computed by dividing the Intermediate Special Tax attributable to the applicable Final Subdivision by the total number of Assessor's Parcels planned for residential development within that Final Subdivision (i.e., the number of residential lots). The Intermediate Special Tax for each Assessor Parcel of Final Mapped Property in a Final Subdivision planned exclusively for non-residential development shall equal $7,500 multiplied by the Acreage of such Assessor's Parcel. If a final Subdivision includes Assessor's Parcels of Developed Property and Final Mapped Property planned for both residential and non-residential development, then the Intermediate Special Tax for each Assessor's Parcel of Final Mapped Property planned for residential development shall be calculated as described above based exclusively on the Acreage of the residential Final Mapped Property. Conversely, the Intermediate Special Tax for each assessor's Parcel of Final Mapped Property planned for non-residential development shall be calculated as described above based exclusively on the Acreage of the non-residential Final Mapped Property. The CFD Administrator shall allocate the Acreage of each Assessor's Parcel in the Final Subdivision to residential and non-residential development based on the projected use of each such Assessor's Parcel. (b) Maximum Special Tax The Maximum Special Tax for Final Mapped Property shall be $10,768 per Acre. 3. Taxable Property Owner Association Property, Taxable Public Property, and Undeveloped Property. The Maximum Special Tax for Taxable Property Owner Association Property, Taxable Public Property, and Undeveloped Property shall be $10, 768 per Acre. APPORTIONMENT OF SPECIAL TAX For each Fiscal Year the Council shall determine the Special Tax Requirement and levy the Special Tax, taking into consideration the levy of the Improvement Area No. 2 (1 A No. 2) Special Tax, until the amount of Special Taxes and Improvement Area No. 2 Special Taxes equal 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 Assigned Special Tax; and the City Council shall be notified by the CFD Administrator that under the terms of I A No. 2 Rate and Method (RMA), the I A No. 2 Special Tax shall be levied on each Assessor's Parcel of I A No. 2 Developed Property in an amount equal to 100% of the applicable I A No. 2 Assigned Special Tax; Resolution No. 08-122 Page 7 of 12 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 on each assessor's Parcel of Final Mapped Property at up to 100% of the Intermediate Special Tax for Final Mapped Property; and the City Council shall be notified by the CFD Administrator that under the terms of I A No. 2 RMA, the I A No. 2 Special Tax shall be levied on each Assessor's Parcel of I A No. 2 Final Mapped Property up to 100% of the I A No. 2 Intermediate Special Tax for I A No. 2 Final Mapped Property, with the levy on Final Mapped Property and I A No. 2 Final Mapped Property being Proportionate; Third: If additional monies are needed to satisfy the Special tax Requirement after the first two steps have been completed, the Special Tax shall be levied on each Assessor's Parcel of Undeveloped Property at up $7,500 per acre; and the City Council shall be notified by the CFD Administrator that under the terms of the I A No. 2 RMA, the I A No. 2 RMA, the I A No. 2 Special Tax shall be levied on each Assessor's Parcel of I A No. 2 Underdeveloped Property at up to $7,500 per Acre, with the levy on Undeveloped Property and I A No. 2 Undeveloped Property being Proportionate; Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the first steps have been completed, the Special Tax shall be levied on each Assessor's Parcel of Final Mapped Property and Undeveloped Property at up to 100% of the Maximum Special Tax for Final Mapped Property and Undeveloped Property; and the City Council shall be notified by the CFD Administrator that under the terms of the I A No. 2 RMA, the I A No. 2 Special Tax shall be levied on each Assessor's Parcel of I A No. 2 Final Mapped Property and I A No. 2 Undeveloped Property at up to 100% of the I A No. 2 Maximum Special Tax for I A No. 2 Final Mapped Property and I A No. 2 Undeveloped Property, with the levy on Final Mapped Property and Undeveloped Property and I A No. 2 Final Mapped Property and I A No. 2 Undeveloped Property being Proportionate; Fifth: If additional monies are needed to satisfy the Special Tax Requirement after the first four steps have been completed, then the levy of the Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is determined through the application of the Backup Special Tax shall be increased in equal percentages from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor's Parcel; and the City Council shall be notified by the CFD Administrator that under the terms of the I A No. 2 RMA, the levy of the I A No. 2 Special Tax on each Assessor's Parcel of I A No. 2 Developed Property whose I A No. 2 Maximum Special Tax is determined through the application of the I A No. 2 Backup Special Tax shall be increased in equal percentages from the I A No. 2 Assigned Special Tax up to the I A No. 2 Maximum Special Tax for each such Assessor's Parcel, with the levy on Developed Property and I A No. 2 Developed Property being Proportionate; Sixth: If additional monies are needed to satisfy the Special Tax Requirement after the first five steps have been completed, then the Special Tax shall be levied on each Assessor's Parcel of Taxable Property Owner Association Property or Taxable Public Property at up to the Maximum Special Tax for Taxable Property Owner Association Property or Taxable Public Property; and the City Council shall be notified by the CFD Administrator that under the terms of the I A No. 2 RMA, the I A No. 2 Special Tax shall be levied on each Assessor's Parcel of I A No. 2 Taxable Property Owner Association Property or I A No. 2 Taxable Public Property at up to the I A No. 2 Maximum Special Tax for I A No. 2 Taxable Property Owner Association Property or I A No. 2 Taxable Public Property, with the levy on Taxable Property Owner Association Property or Taxable Public Property and I A No. 2 Taxable Property Owner Association Property or I A No. 2 Taxable Public Property being Proportionate. Resolution No. 08-122 Page 8 of 12 Notwithstanding the above the city Council may, in any Fiscal Year, levy proportionately less than 100% of the Assigned Special Tax and the I A No. 2 Assigned Special Tax in step one (above) when (i) the City Council is no longer required to levy a Special Tax pursuant to steps two through six above and the City Council is no longer required to levy an I A No. 2 Special Tax pursuant to steps two through six (above) of the I A No. 2 RMA in order to meet the Special Tax Requirement; (ii) all authorized I A No. 1 and I A No. 2 Bonds have already been issued or the City Council has covenanted that it will not issue any additional I A No. 1 and I A No. 2 Bonds (except refunding bonds) to be supported by Special Taxes and I A No. 2 Special Taxes; and (iii) all Authorized Facilities have been constructed and/or acquired. Further notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel or 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 I A No. 1 or I A No. 2, 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 I A No. 1 or I A No. 2. CLASSIFICATION OF PARCELS Improvement Area No. 2 Each Fiscal Year, all Taxable Property within Improvement Area No. 2 shall be classified as Developed Property, Final Mapped Property, Taxable Property Owner Association Property, Taxable Public Property, or Undeveloped Property, and all such Taxable Property shall be subject to the levy of Special Taxes in accordance with the rate and method of apportionment determined pursuant to the Sections III, IV and V below. MAXIMUM SPECIAL TAX RATE 1. Developed Property (a) Maximum Special Tax The Maximum Special Tax 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 or (ii) the amount derived by application of the Backup Special Tax. (b) Assigned Special Tax The Assigned Special Tax for each Land Use class is shown in Table 1. Resolution No. 08-122 Page 9 of 12 TABLE 1 Assigned Special Taxes For Developed Property Improvement Area No. 2 Land Use Description Assigned Special Tax Class 1 Apartment Property $237 per uni 2 Other Residential $10,768 per Acre Property 3 Non-Residential $0.63 per square foot of Non- Property Residential Floor Area (c). Multiple Land Use Classes In some instances an Assessor's Parcel of Developed Property may contain more than and Use Class. The Assigned Special Tax levied on an Assessor's Parcel shall be the sum of the Assigned Special Taxes for all Land Use Classes located on that Assessor's Parcel. The Maximum Special Tax that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Taxes that can be levied for all Land Use Classes located on that Assessor's Parcel derived by application of the Backup Special Tax. 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 Class 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. (c) Backup Special Tax The Backup Special Tax shall equal $10, 061 per acre. Resolution No. 08-122 Page 10 of 12 2. Final Mapped Property (a). Intermediate Special Tax The Intermediate Special Tax shall only be levied on Assessor's Parcels of the Final Mapped Property. To compute the Intermediate Special Tax attributable to a Final Subdivision, the Acreage of all Developed Property and Final Mapped Property within that Final Subdivision shall be multiplied by $7,500. The Intermediate Special Tax for each Assessor's Parcel of Final Mapped Property planned for residential development shall then be computed by dividing the Intermediate Special Tax attributable to the applicable Final Subdivision by the total number of Assessor's Parcels planned for residential development within that Final Subdivision (i.e., the number of residential lots). The Intermediate Special Tax for each Assessor's Parcel of Final Mapped Property in a Final Subdivision planned exclusively for non-residential development shall equal $7,500 multiplied by the Acreage of such Assessor's Parcel. If a final Subdivision includes Assessor's Parcels of Developed Property and Final Mapped Property planned for both residential and non-residential development, then the Intermediate Special Tax for each Assessor's Parcel of Final Mapped Property planned for residential development shall be calculated as described above based exclusively on the Acreage of the residential Final Mapped Property. Conversely, the Intermediate Special Tax for each Assessor's Parcel of Final Mapped Property planned for non- residential development shall be calculated as described above based exclusively on the Acreage of the non-residential Final Mapped Property. The CFD Administrator shall allocate the Acreage of each Assessor's Parcel in the Final Subdivision to residential and non-residential development based on the projected use of each such Assessor's Parcel. (c) Maximum Special Tax The Maximum Special Tax for Final Mapped Property shall be $10,768 per Acre. Resolution No. 08-122 Page 11 of 12 3. Taxable Property Owner Association Property, Taxable Public Property, and Undeveloped Property. The Maximum Special Tax for Taxable Property Owner Association Property, Taxable Public Property, and Undeveloped Property shall be $10, 768 per Acre. APPORTIONMENT OF SPECIAL TAX For each Fiscal Year the City Council shall determine the Special Tax Requirement and levy the Special Tax, taking into consideration the levy of the Improvement Area No. 1 (1 A No. 1) Special Tax, until the amount of Special Taxes and Improvement Area No. 1 Special Taxes equal 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 Assigned Special Tax; and the City Council shall be notified by the CFD Administrator that under the terms of I A No. 1 Rate and Method (RMA), the I A No. 1 Special Tax shall be levied on each Assessor's Parcel of I A No. 1 Developed Property in an amount equal to 100% of the applicable I A No. 1 Assigned 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 on each Assessor's Parcel of Final Mapped Property at up to 100% of the Intermediate Special Tax for Final Mapped Property; and the City Council shall be notified by the CFD Administrator that under the terms of I A No. 1 RMA, the I A No. 1 Special Tax shall be levied on each Assessor's Parcel of I A No. 1 Final Mapped Property up to 100% of the I A No. 1 Intermediate Special Tax for I A No. 1 Final Mapped Property, with the levy on Final Mapped Property and I A No. 1 Final Mapped Property being Proportionate; Third: If additional monies are needed to satisfy the Special tax Requirement after the first two steps have been completed, the Special Tax shall be levied on each Assessor's Parcel of Undeveloped Property at up $7,500 per acre; and the City Council shall be notified by the CFD Administrator that under the terms of the I A No. 1 RMA, the I A No. 1 Special Tax shall be levied on each Assessor's Parcel of I A No. 1 Underdeveloped Property at up to $7,500 per Acre, with the levy on Undeveloped Property and I A No. 1 Undeveloped Property. being Proportionate; Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the first steps have been completed, the Special Tax shall be levied on each Assessor's Parcel of Final Mapped Property and Undeveloped Property at up to 100% of the Maximum Special Tax for Final Mapped Property and Undeveloped Property; and the City Council shall be notified by the CFD Administrator that under the terms of the I A No. 1 RMA, the I A No. 1 Special Tax shall be levied on each Assessor's Parcel of I A No. 1 Final Mapped Property and I A No. 1 Undeveloped Property at up to 100% of the I A No. 1 Maximum Special Tax for I A No. 1 Final Mapped Property and I A No. 1 Undeveloped Property, with the levy on Final Mapped Property and Undeveloped Property and I A No. 1 Final Mapped Property and I A No. 1 Undeveloped Property being Proportionate; Fifth: If additional monies are needed to satisfy the Special Tax Requirement after the first four steps have been completed, then the levy of the Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is determined through the application of the Backup Special Tax shall be increased in equal percentages from the Assigned Special Tax up Resolution No. 08-122 Page 12 of 12 to the Maximum Special Tax for each such Assessor's Parcel; and the City Council shall be notified by the CFD Administrator that under the terms of the I A No. 1 RMA, the levy of the I A No. 1 Special Tax on each Assessor's Parcel of I A No. 1 Developed Property whose I A No. 1 Maximum Special Tax is determined through the application of the I A No. 1 Backup Special Tax shall be increased in equal percentages from the I A No. 12 Assigned Special Tax up to the I A No. 1 Maximum Special Tax for each such Assessor's Parcel, with the levy on Developed Property and I A No. 1 Developed Property being Proportionate; Sixth: If additional monies are needed to satisfy the Special Tax Requirement after the first five steps have been completed, then the levy of the Special Tax on each Assessor's Parcel of Taxable Property Owner Association Property or Taxable Public Property at up to the Maximum Special Tax for Taxable Property Owner Association Property or Taxable Public Property; and the City Council shall be notified by the CFD Administrator that under the terms of the I A No. 1 RMA, the I A No. 1 Special Tax shall be levied on each Assessor's Parcel of I A No. 1 Taxable Property Owner Association Property or I A No. 1 Taxable Public Property at up to the I A No.1 Maximum Special Tax for I A No. 1 Taxable Property Owner Association Property or I A No. 1 Taxable Public Property, with the levy on Taxable Property Owner Association Property or Taxable Public Property and I A No. 1 Taxable Property Owner Association Property or I A No. 1 Taxable Public Property being Proportionate. Notwithstanding the above the City Council may, in any Fiscal Year, levy proportionately less than 100% of the Assigned Special Tax and the I A No. 1 Assigned Special Tax in step one (above) when (i) the City Council is no longer required to levy a Special Tax pursuant to steps two through six above and the City Council is no longer required to levy an I A No. 1 Special Tax pursuant to steps two through six (above) of the I A No. 1 RMA in order to meet the Special Tax Requirement; (ii) all authorized Bonds have already been issued or the City Council has covenanted that it will not issue any additional Bonds (except refunding bonds) to be supported by Special Taxes and I A No. 1 Special Taxes; and (iii) all Authorized Facilities have been constructed and/or acquired. Further notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel or 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 I A No. 1 or I A No. 2, 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 I A No. 1 or I A No. 2.