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HomeMy WebLinkAbout09-121 - Resolutions RESOLUTION NO. 09-121 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, RE-ESTABLISHING ANNUAL SPECIAL TAX FOR COMMUNITY FACILITIES DISTRICT 2006-02 (AMADOR ON ROUTE 66) FOR FISCAL YEAR 2009-2010 Recitals WHEREAS, by its Resolution No. 06-327, adopted on October 18, 2006, 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. 2006-02 (the "District'); and WHEREAS, at an election held on October 18, 2006, the qualified electors unanimously approved the levy of a special tax (the "Special Tax"); and WHEREAS, by its Ordinance No. 770 (the "Ordinance"), adopted on November 1,2006 the City Council authorized the levy of the Special Tax in accordance with the Act; and WHEREAS, on January 25, 2007, the District delivered its $2,980,000 City of Rancho Cucamonga Community Facilities District No. 2006-01 Special Tax Bonds (the "Bonds"); and WHEREAS, in a Fiscal Agent Agreement dated as of January 01, 2007 by and between the City and Wells Fargo Bank, National Association (the "Fiscal Agent'), the City covenanted to fix and levy the Special Tax 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, principal and interest will become due and payable on the Bonds during Fiscal Year 2009-2010 in an amount exceeding funds held by the Fiscal Agent and designated for the payment for such principal interest; and WHEREAS, the City Council intends to levy the Special Tax for Fiscal Year 2009-2010 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 2009-2010 by City staff. NOW THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1: That the above recitals are all true and correct. SECTION 2: That the specific rate and amount of the Special Tax to be collected to pay for the costs and expenses for Fiscal Year 2009-2010 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 S: 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,certification and signatures Resolution No. 09-121 — Page 2 of 15 PASSED, APPROVED, AND ADOPTED this 3`' day of June 2009. AYES: Gutierrez, Kurth, Michael, Spagnolo, Williams NOES: None ABSENT: None ABSTAINED: None Donald J. Kurth, M.D., ayor ATTEST: 06nice C. Reynolds, City Clerk I, JANICE C. REYNOLDS, 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 3rtl day of June 2009. Executed this 41h day of June 2009, at Rancho Cucamonga, California. a&4Uj"1C e O J nice C. Reynolds, City C9erk Resolution No. 09-121 - Page 3 of 15 CITY OF RANCHO CUCAMONGA COMMUNITY FACILITIES DISTRICT NO. 2006-02 (AMADOR ON ROUTE 66) 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 2009/2010. CLASSIFICATION OF PARCELS Each Fiscal Year, all Taxable Property within CFD No. 2006-02 shall be classified as Developed Property or Undeveloped Property, and shall be subject to the levy of Special Taxes in accordance with the rate and method of apportionment determined pursuant to the sections below. MAXIMUM SPECIAL TAX RATE The Maximum Special Tax for each Assessor's Parcel of Residential Property shall be based on the Residential Floor Area of the 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 is as follows: 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. Resolution No. 09-121 —Page 4 of 15 TABLE 1 Maximum Special Tax for Developed Property in Community Facilities District No. 2006-02 Land Use Residential Floor Maximum Class Description 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 $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. A. SPECIAL TAX BUYDOWN All of the requirements of this Section A, which describes the need for a Special Tax Buydown that may result from a change in development as determined pursuant to this Section A, shall only apply after the issuance of the first series of CFD No. 2006- Resolution No. 09-121 —Page 5 of 15 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 A: "Certificate of Satisfaction of Special Tax Buydown" means a certificate from the CFD Administrator stating that the property described in such certificate has met the Special Tax Buydown Requirement for such property as calculated under this Section A. "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 A. "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 A, 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, Resolution No. 09-121 —Page 6 of 15 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 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 Number.of- Class Description Residential Floor Area Units/Acres I 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-Residential Property NA 0.00 Acres Resolution No. 09-121 —Page 7 of 15 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 result 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 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 1 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. Resolution No. 09-121 — Page 8 of 15 Step 5. The Special Tax Buydown Requirement shall be calculated using the prepayment formula described in Section A, 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 1; (iii) the Capitalized Interest Credit described in Paragraph 12 of Section I shall be S0; 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. 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 A. 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. B. 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; Resolution No. 09-121 —Page 9 of 15 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. C. 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 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. 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. 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 Resolution No. 09-121 — Page 10 of 15 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 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. F. PREPAYMENT OF SPECIAL TAX The following additional definition applies to this Section F: "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, 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 Resolution No. 09-121 — Page 11 of 15 As of the proposed date of prepayment, the Special Tax Prepayment Amount shall be calculated as follows: 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"). 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'). Resolution No. 09-121 — Page 12 of 15 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"). 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 CFD No. 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 Resolution No. 09-121 —Page 13 of 15 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 complianee 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. G. 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. 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