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HomeMy WebLinkAbout646 - Ordinances ORDINANCE NO. 646 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2000-02 (RANCHO CUCAMONGA CORPORATE PARK) AUTHORIZING THE LEVY OF A SPECIAL TAX IN SUCH COMMUNITY FACILITIES DISTRICT WHEREAS, the CITY COUNCIL of the CITY OF RANCHO CUCAMONGA, CALIFORNIA (the "City Council"), has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors authorizing the levy of a special tax in a community facilities district, all as authorized pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982", being Chapter 2.5, Part 1. Division 2, Title 5 of the Government Code of the State of California (the "Act"). This Community Facilities District is designated as COMMUNITY FACILITIES DISTRICT NO. 2000- 02 (RANCHO CUCAMONGA CORPORATE PARK) (the "District"). The City Council of the City of Rancho Cucamonga, California, acting as the legislative body of Community Facilities District No. 2000-02 (RANCHO CUCAMONGA CORPORATE PARK), does hereby ordain as follows: SECTION 1: This City Council does, by the passage of this ordinance, authorize the levy of special taxes pursuant to the Rate and Method of Apportionment of Special Taxes as set forth in Exhibit "A" attached hereto (the "Rate and Method") and incorporated herein by this reference. SECTION 2: This City Council, acting as the legislative body of the District, is hereby further authorized, by Resolution, to annually determine the special tax to be levied for the then current tax year or future tax years, except that the special tax to be levied shall not exceed the maximum special tax calculated pursuant to the Rate and Method, but the special tax may be levied at a lower rate. SECTION 3: The special taxes herein authorized, to the extent possible, shall be collected in the same manner as ad valorera property taxes and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency as applicable for ad valorera taxes; provided, however, the District may utilize a direct billing procedure for any spec!al taxes that cannot be colle~cted on ~h.e County tax roll or' may, by resolution, elect to 'collect the special taxes at a different time or in a different manner if necessary to meet its financial obligations. Ordinance No. 646 Page 2 of 9 SECTION 4: The special tax shall be secured by the lien imposed pursuant to Sections 3114.5 and 3115.5 of the Streets and Highways Code of the State of California, which lien shall be a continuing lien and shall secure each levy of the special tax. The lien of the special tax shall continue in force and effect until the special tax obligation is prepaid, permanently satisfied and canceled in accordance with Section 53344 of the Government Code of the State of California or until the special tax ceases to be levied by the City Council in the manner provided in Section 53330.5 of said Government Code. SECTION 5: This Ordinance shall be effective thirty (30) days after its adoption. Within fifteen (15) days after its adoption, the City Clerk shall cause this Ordinance to be published in a newspaper of general circulation in the City pursuant to the provisions of Government Code Section 36933. PASSED, APPROVED, AND ADOPTED this 6th day of December 2000. AYES: Alexander, Biane, Curatalo, Dutton, Williams NOES: None ABSENT: None ABSTAINED: None ATTEST: William J. Al~a~/or Ordinance No. 646 Page 3 of 9 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 6th day of December 2000. Executed this 7th day of December, at Rancho Cucamonga, California. D~bra J. Ada',~C~ C, City Clerk O~dinance No. 646 Page 4 of 9 EXHIBIT A CITY OF RANCHO CUCAMONGA COMMUNITY FACILITIES DISTRICT NO. 2000-02 (Rancho Cucamonga Corporate Park) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX A Special Tax applicable to each assessor's parcel or portion thereof in the CFD shall be levied and collected according to the tax liability determined by the Council, through the application of the rate and method of apportionment of the Special Tax set forth below. All of the property in the CFD, unless exempted by law or by the provisions of this Rate and Method of Apportionment of Special Tax, shall be taxed to the extent and in the manner herain provided. I. DEFINITIONS "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California. "Acre or Acreage" means the land area of a Parcel as shown on an Assessors Parcel Map, or if the land area is not shown on an Assessors Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other map or plan recorded with the County. "Administrative Fees or Expenses" means the actual or estimated costs incurred by the City as administrator of the CFD to determine, levy and collect the Special Taxes, including salaries of City employees and the fees of consultants, legal counsel, corporate paying agents, fiscal agents, and trustees; the costs of collecting installments of the Special Taxes upon the general tax rolls; cost of arbitrage calculation and arbitrage rebates, preparation of raquired reports; and any other costs raquirad to administer the CFD as determined by the City. "Administrative Services Director" means the Administrative Services Diractor of the City or his or her designee. "Assessor" means the Assessor of the County. "Bond Share" means the share of Bonds assigned to a Taxable Parcel as specffied in Section VI. A-1 City ofRancho Ordinance No. 646 Page 5 of 9 "Bonds" mean any bonds issued by the CFD or other debt as defined in Section 53317 (d) of the Act incurred by the CFD. "CFD" means the City of Rancho Cucamonga Community Facilities District No. 2000-02 (Rancho Cucamonga Corporate Park). "City" means the City of Rancho Cucamonga, California. "Council" means the City Council of the C~/of Rancho Cucamonga acting as the legislative body of the CFD under the Act. "County" means the County of San Bemardino, California. "Debt Service" means for each Fiscal Year, the total scheduled amount of principal and interest payable on any Outstanding Bonds dudng the calendar year commencing on January 1 of such Fiscal Year. "Fiscal Year" means the period starling on July I and ending the following June 30. "Indenture" means the bond indenture, fiscal agent agreement, indenture of trust, trust agreement, resolution of issuance of other instrument pursuant to which the Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. "Maximum Annual Special Tax" means the greatest amount of Special Tax, determined in accordance with Section III, that may be levied in any Fiscal Year on any Parcel. "Maximum Special Tax Revenue" means the sum of the Maximum Annual Special Tax for all of the Taxable Parcels in the CFD. "Outstanding Bonds" means the total principal amount of Bonds that have been issued and not retired or defeased. "Parcel" means any County assessors parcel that is within the boundaries of the CFD, based on the equalized tax rolls of the County as of January 1 in the pdor Fiscal Year. "Parcel's Allocated Share" means the Msximum Annual Special Tax for a Parcel divided by the Maximum Annual Special Tax Revenue. "Payoff Parcel" means any Taxable Parcel for which a prepayment of the Special Tax Obligation is being calculated pursuant to Section VI. "Reserve Fund" means any reserve fund established pursuant to the provisions of the Indenture for the Outstanding Bonds of the CFD. A-2 City of Rancho Ordinance No. 646 Page 6 of 9 "Reserve Fund Share" is equal to the lesser of the Reserve Requirement or existing monies in the Reserve Fund, if any, for the Outstanding Bonds multiplied by the Parcel's Allocated Share. "Reserve Requirement" shall have the meaning given such term in the Indenture. "Special Tax" means any special tax levied within CFD pursuant to the Act and this Rate and Method of Apportionment of Special Tax. "Special Tax Obligation" means the total obligation of a Taxable Parcel to pay the Special Tax for the remaining life of the CFD. "Special Tax Requirement" means for any Fiscal Year. the total of (i) Debt Service for such Fiscal Year; (ii) related Administrative Expenses for such Fiscal Year; (ill) any amounts needed to replenish the Reserve Fund to the Reserve Requirement and (iv) the amount, if any, equal to reasonably anticipated Special Tax delinquencies for the current Fiscal Year [subject to the limitations of Government Code Section 53321(d)], less a credit for funds available to reduce the annual Special Tax levy as determined pursuant to the Indenture. "Taxable Acreage" or "Taxable Acre" is the area within each Taxable Parcel that is suitable for commercial or other improvements when considering existing easements for streets. The minimum Taxable Acreage in this CFD is 137.38 acres. If the total Acreage of all Taxable Parcels falls below the minimum Taxable Acreage of 137.38 acres, the Taxable Acreage for each Taxable Parcel shall be increased proportionally based on the Acreage of such Taxable Parcel until the minimum Taxable Acreage is reached. "Taxable Parcel" means any Parcel that is not a Tax-Exempt Parcel. "Tax-Exempt Parcel" means, as of January 1st of each year, (i) any Parcel owned by a govemmental entity, or irrevocably offered for dedication to a governmental entity, (ii) any Parcel which constitutes public right-of-way or which is encumbered by an untoarmed utility easement, making impractical its utilization for other than the purpose set forth in the easement, or (iii) any Parcel assigned a zero value by the Assessor. Notwithstanding the foregoing, (i) a Taxable Parcel acquired by a public entity after formation of the CFD by means of negotiated transaction, or by gift or devise, or by eminent domain proceedings, shall remain a Taxable Parcel, and (ii) if a public agency owning a Tax-Exempt Parcel, including a Tax-Exempt Parcel held in trust for any beneficiary, grants a leasehold or other possessory interest in the parcel to a non-exempt person or entity, the Special Tax shall be levied on the leasehold or possessory interest and shall be payable by the owner of the leasehold or possessory interest. A-3 City of Rancho Ordinance No. 646 Page 7 of 9 II. CLASSIFICATION OF PARCELS At the beginning of each Fiscal Year, using the definitions above, the Council shall cause each Parcel to be classified as a Tax-Exempt Parcel or a Taxable Parcel. III. MAXIMUM ANNUAL SPECIAL TAX The Maximum Annual Special Tax is $3,896 per Taxable Acre. On each July 1, commencing on July 1, 2002, the Maximum Annual Special Tax shall be increased by two percent (2%) of the amount in effect for the previous Fiscal Year. IV. APPORTIONMENT OF SPECIAL TAX Commencing with the first Fiscal Year for which the Special Tax is levied and for each following Fiscal Year, the Council shall determine the Special Tax Requirement and levy the Special Tax until the amount of Special Taxes levied equals the Special Tax Requirement. The Special Taxes shall be levied each Fiscal Year as follows: (1) The Special Tax shall be levied on each Taxable Parcel in an amount equal to 100% of the applicable Maximum Annual Special Tax; or (2) If less monies are needed to satisfy the Special Tax Requirement, the Special Tax shall be levied proportionally on each Taxable Parcel at less than 100% of the Maximum Annual Special Tax. V. MANNER OF COLLECTION Collection of the Special Tax shall be by the County in the same manner as ordinary ad valorem property taxes are collected and the Special Tax shall be subject to the same penalties and the same lien priority in the case of delinquency as ad valorem taxes; provided, however, that the City may provide by Resolution for (i) other means of collecting the Special Tax, including direct billings thereof to the property owners and (ii) judicial foreclosure of delinquent Special Taxes. VI. SATISFACTION OF SPECIALTAX OBLIGA'RON Property owners may prepay and permanent:y satisfy the Special Tax Obligation ("Special Tax Prepayment") by a cash settlement with the CFD as permitted under Government Code Section 53344. Pre:3ayment is permitted only under the following conditions: · The CFD determines that the prepayment of the Special Tax Obligation does not jeopardize its ability to make timely payments of Debt Service on A-4 City of Rancho Ordinance No. 646 Page 8 of 9 the Outstanding Bonds. No Special Tax prepayment shall be allowed unless the Maximum Annual Special Tax that may be levied on all Taxable Parcels other than the Payoff Parcel is at least 110% of the maximum annual Debt Service on the Outstanding Bonds. Any property owner prepaying the Special Tax Obligation must pay any and all delinquent Special Taxes and penalties for the Payoff Parcel prior to prepayment. The amount of the Special Tax Prepayment shall be established by the following steps: Step 1: Determine the Maximum Annual Special Tax for the Payoff Parcel based on the assignment of the Maximum Annual Special Tax described in Section Ill above. Step 2: Divide the Maximum Annual Special Tax for the Payoff Parcel from Step 1 by the Maximum Special Tax Revenue to arrive at the Parcel's Allocated Share. Step3: Determine the Bond Share for the Payoff Parcel by multiplying the Parcel's Allocated Share from Step 2 by the total amount of Outstanding Bonds issued by the CFD. Step 4: Determine the Reserve Fund Share associated with the Bond Share determined in Step 3. Step 5: Calculate the amount needed to pay interest on the Bond Share from the first Bond interest and/or principal payment date established pursuant to the Indenture following the current Fiscal Year until the earliest redemption date for the Bonds on which Bonds may be redeemed from the proceeds of a Special Tax Prepayment. Subtract from this amount, the amount of interest that is reasonably expected to be earned from the reinvestment of the Special Tax Prepayment less money kept by the CFD to cover costs from the date of the prepayment until the first redemption date for the Bonds. Step 6: Determine the Special Tax Prepayment by subtracting the Reserve Fund Share calculated in Step 4 from the Bond Share calculated in Step 3, adding the interest amount calculated in Step A.5 and by adding Debt Service not yet paid for the current calendar year to the date of Bond redemption and all fees, call premiums, and expenses incurred by the City in connection with the prepayment A-5 City of Rancho Ordinance No. 646 Page 9 of 9 calculation or with the application of the proceeds of the Special Tax Prepayment. VII. TERM OF "SPECIAL TAX" The Special Tax shall be collected only so long as required to make payments on the Bonds, but in no event shall it be levied after Fiscal Year 2035-2036. A-6 City of Rancho