HomeMy WebLinkAbout09-120 - Resolutions RESOLUTION NO. 09-120
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO CUCAMONGA, CALIFORNIA, RE-ESTABLISHING
ANNUAL SPECIAL TAX FOR COMMUNITY FACILITIES
DISTRICT 2006-01 (VINTNER'S GROVE) FOR FISCAL YEAR
2009-2010
Recitals
WHEREAS, by its Resolution No. 06-322, 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. 2006-01 (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. 769 (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 $5,800,000 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 and 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 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,certification and signatures
Resolution No. 09-120— 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
(D
Donald J4r11, D., ayor
ATTEST:
aaol e -
.a ice C. Reynolds, City Clbrk
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 3rd day of June 2009.
Executed this 4t" day of June 2009, at Rancho Cucamonga, California.
Janice C. Reynolds, City Clerk
Resolution No. 09-120 - Page 3 of 15
CITY OF RANCHO CUCAMONGA
COMMUNITY FACILITIES DISTRICT NO. 2006-01
(VINTNER'S GROVE)
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. 2006-01 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:
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. 09-120—Page 4 of 15
TABLE 1
Maximum Special Tax for Developed Property in
Community Facilities District No. 2006-01
Land Use Residential Floor Maximum
Class Description Area Special Tax
I Single Family Detached Property More than 2,900 SF $3,687 per unit
2 Single Family Detached Property 2,601 - 2,900 SF $3,379 per unit
3 Single Family Detached Property 2,301 - 2,600 SF $3,244 per unit
4 Single Family Detached Property Less than 2,301 SF $3,109 per unit
5 Single Family Attached Property More than 1,850 SF $2,774 per unit
6 Single Family Attached Property 1,601 - 1,850 SF $2,678 per unit
7 Single Family Attached Property 1,351 - 1,600 SF $2,501 per unit
8 Single Family Attached Property Less than 1,351 SF $2,324 per unit
9 Non-Residential Property NA $49,234 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
$54,668 per Acre.
Resolution No. 09-120—Page 5 of 15
A. 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-
01 Bonds. Prior to the issuance of the first series of CFD No. 2006-01 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. 2006-01 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.
Resolution No. 09-120—Page 6 of 15
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 9
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. 2006-01 shall not be less than 156 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. 2006-01 to below 156 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.
2006-01 Bonds.
TABLE 2
Expected Residential Dwelling Units per Land Use Class and Non-Residential Acreage
Community Facilities District No. 2006-01
Land Use
Number of
Class ' Description Residential Floor.Area Units/Acres
I Single Family Detached Property More than 2,900 SF 22 units
2 Single Family Detached Property 2,601 - 2,900 SF 28 units
3 Single Family Detached Property 2,301 - 2,600 SF 0 units
4 Single Family Detached Property Less than 2,301 SF 28 units
Resolution No. 09-120—Page 7 of 15
Land Use - Number of
b'er
Class Description Residential Flooi Area ��Units/Acre
s ,
5 Single Family Attached Property More than 1,850 SF 26 units
6 Single Family Attached Property 1,601 - 1,850 SF 26 units
7 Single Family Attached Property 1,351 - 1,600 SF 0 units
8 Single Family Attached Property Less than 1,351 SF 26 units
9 Non-Residential 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. 2006-01 in consultation with the current property
owners for all remaining Undeveloped Property in CFD No. 2006-01, 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-
01, 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
Resolution No. 09-120— Page 8 of 15
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.
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 I; (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 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.
Resolution No. 09-120— Page 9 of 15
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;
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. 2006-01
Bonds have already been issued or the Council has covenanted that it will not issue
any additional CFD No. 2006-01 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. 2006-01.
C. EXEMPTIONS
No Special Tax shall be levied on up to 11.0 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
Resolution No. 09-120—Page 10 of 15
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. 2006-01.
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.
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. 2006-01 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. 2006-01 may only be prepaid after all
authorized CFD No. 2006-01 Bonds have already been issued, or after the Council has
covenanted that it will not issue any additional CFD No. 2006-01 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
Resolution No. 09-120—Page 11 of 15
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. 2006-01 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 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. 2006-01 based
on the Developed Property Special Taxes which could be charged in
the current Fiscal Year on all expected development in CFD No. 2006-
01 (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
Resolution No. 09-120— Page 12 of 15
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').
10. The administrative fees and expenses of CFD No. 2006-01 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. 2006-01 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
Resolution No. 09-120—Page 13 of 15
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. 2006-01 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. 2006-01
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. 2006-01 (after excluding 11.0
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. 2006-01 Bonds have been paid; and
(ii) all Authorized Facilities have been constructed.
Resolution No. 09-120—Page 14 of 15
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