HomeMy WebLinkAbout658 - Ordinances ORDINANCE NO. 658
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
RANCHO CUCAMONGA, CALIFORNIA, ACTING IN ITS
CAPACITY AS THE LEGISLATIVE BODY OF RANCHO
CUCAMONGA COMMUNITY FACILITIES DISTRICT NO. 200'1-
01 AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN
EACH OF IMPROVEMENT AREA NOS. '1, 2 AND 3 OF SUCH
DISTRICT
RECITALS:
A. The City Council (the "City Council") of the City of Rancho
Cucamonga, California (the "City"), has previously adopted
Resolution No. 01-86 stating its intention to conduct proceedings to
form City of Rancho Cucamonga Community Facilities District
No. 2001-01 (the "District") and to establish three improvement areas,
Improvement Area No. 1, Improvement Area No. 2 and Improvement
Area No. 3 (each an "Improvement Area" and collectively the
"Improvement Areas") therein pursuant to the Mello-Roos Community
Facilities Act of 1982, as amended, commencing with Section 53311
of the California Government Code (the "Act") to finance certain public
facilities.
B. The City Council has previously adopted Resolution No. 01-087
stating the City Council's intention, acting as the legislative body of
the District, to authorize the issuance and sale of a series of bonds for
Improvement Areas Nos. 1 and 2 in the maximum aggregate principal
amount of $15,000,000 and a series of bonds for Improvement Area
No. 3 in the maximum aggregate principal amount of $12,000,000.
C. Resolution Nos. 01-086 and 01-087 set June 6, 2001 as the date of a
public hearing on the establishment of the District and the
Improvement Areas therein, extent of the District and each
Improvement Area therein, the furnishing of specified types of public
facilities within the District, the proposed rate and method of
apportionment of the special tax within each Improvement Area, and
the proposed debt issues.
D. A notice of the public hearing was published and mailed to all
landowners proposed to be included in the District in accordance with
the Act. The public hearing was subsequently continued to June 20,
2001.
Ordinance No. 658
Page 2 of 45
E. Prior to the public hearing there was filed with the City Council a
report containing a description of the facilities necessary to
adequately meet the needs of the District and an estimate of the cost
of financing such facilities as required by Section 53321.5 of the Act.
Subsequent thereto, an amended report entitled, "Amended
Community Facilities District Report" (the "Report") was presented to
the City Council, which Report includes a brief analysis of the impact
of the proposed modifications to the rate and method of
apportionment of the special tax described in Section 4 of Resolution
No. 01-162 the probable special tax to be paid by the owner of any lot
or parcel in the District, and the City Council has considered such
Report, which report is on file in the office of the City Clerk.
I=. At the public hearing all persons desiring to be heard on all matters
pertaining to the establishment of the District and each proposed
~ Improvement Area, the extent of the District and each proposed
" Improvement Area, the furnishing of specified types of public facilities
- within the District, the proposed rate and method of apportionment of
the special tax, and the proposed debt issues were heard and a full
and fair hearing was held.
G. At the public hearing evidence was presented to the City Council on
the matters before it and the City Council at the conclusion of the
hearing is fully advised as to all matters relating to the formation of the
District and the establishment of the Improvement Areas therein, the
levy of the special tax and the issuance of bonded indebtedness
therein.
H. Subsequent to the public hearing, the City Council adopted Resolution
No.01-162 which approved certain modification in connection with the
District, established the District and the Improvement Areas and
authorized the levy of a special tax within each Improvement Area.
I. Subsequent to the public hearing, the City Council also adopted
Resolution No. 01-163 which determined the necessity to incur
bonded indebtedness in the maximum principal amount of
$15,000,000 for Improvement Area No. I and Improvement Area No.
2 and a maximum principal amount of $12,000,000 for Improvement
Area No. 3.
K. On June 20, 2001, an election was held within each Improvement
Area at which the qualified electors of each Improvement Area
approved the establishment of an appropriations limit for the District,
the incurrence of bonded indebtedness and the levy of a special tax
within the respective Improvement Area.
L. On June 20, 2001, the City Council adopted Resolution No. 01-164
which certified the results of the June 20, 2001 election conducted by
the City Clerk, which results showed that more than two-thirds of the
votes cast in each Improvement Area were in favor of the proposition
to establish an appropriations limit for the District, incur bonded
indebtedness and levy the special tax.
Ordinance No. 658
Page 3 of 45
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO
CUCAMONGA DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. RECITALS. The above recitals are all true and correct.
SECTION 2. AUTHORIZATION OF LEVY OF SPECIAL TAX.
By passage of this Ordinance, the City Council authorizes the levy
of a special tax within Improvement Area No. 1, Improvement
Area No. 2 and Improvement Area No. 3 of the District at the
maximum rate and in accordance with the rates and method of
apportionment set forth for each Improvement Area in Exhibit B to
Resolution No. 01-162, which for reference purposes is attached
hereto as Exhibit A.
SECTION 3. ANNUAL RATE DETERMINATION.
The City Council is hereby further authorized to determine on or
before August 8 of each year, or such other date as is established
by law or by the County Auditor-Controller of the County of San
Bernardino, the specific special tax to be levied on each parcel of
land in each of the Improvement Areas of the District, except that
the special tax rate to be levied shall not exceed the maximum
rates set forth in Exhibit A, but the special tax may be levied at a
lower rate.
SECTION 4. EXEMPTION OF GOVERNMENT PROPERTY. -.
Properties or entities of the state, federal, or other local
governments shall be exempt from the above-referenced and
approved special tax only to the extent set forth in Exhibit A
hereto, and otherwise shall be subject to tax consistent with the
provisions of Section 53317.3 and 53317.5 of the Act.
SECTION 5. USE OF COLLECTIONS.
All of the collections of the special tax shall be used only as
provided for in the Act and in Resolution No.01-162. The special
tax shall be levied only so long as needed for its purpose as
described in Resolution No. 01-162.
SECTION 6. COLLECTION.
The special tax shall be collected in the same manner as ordinary
ad valorem taxes and shall be subject to the same penalties and
the same procedure, sale and lien in any case of delinquency as
applicable for ad valorera property taxes. Provided, however, that
the special tax may be collected in such other manner as may be
provided by the City Council.
Ordinance No. 658
Page 4 of 45
SECTION 7: FORECLOSURE.
As a cumulative remedy, if any amount levied as a special tax for
payment of bond interest or principal, together with any penalties
and other charges accruing under this Ordinance, are not paid
when due, the City Council may, not later than four years after the
due date of the last installment of principal on the Bonds, order
that the same be collected by an action brought in the superior
court to foreclose the lien of such special tax.
SECTION 8: AUTHORIZATION.
The specific authorization for adoption of this Ordinance is
pursuant to the provisions of Section 53340 of the Act.
SECTION 9: CERTIFICATION.
The City Clerk shall certify to the passage of this Ordinance and
cause it to be published or posted in accordance with law.
PASSED, APPROVED, AND ADOPTED this 18th day of July 2001.
AYES: Alexander, Biane, Curatalo, Williams
NOES: None
ABSENT: None
ABSTAINED: Dutton
William J./~'ex a or
/
Ordinance No. 658
Page 5 of 45
ATTEST:
I, DEBRA J. ADAMS, CITY CLERK of the City of Rancho Cucamonga,
California, do hereby cedity that the foregoing Ordinance was introduced at a regular meeting of
the Council of the City of Rancho Cucamonga held on the 20th day of June 2001, and was
passed at a regular meeting of the City Council of the City of Rancho Cucamonga held on the
18thday of July 2001.
Executed this 19th day of July 2001, at Rancho Cucamonga, California.
bl~Fa J. Adarb..8/~MC, City Clerk
Ordinance No. 658
e6 of 45
EXHIBIT A ~
CITY OF RANCHO CUCAMONGA
COMMUNITY FACILITIES DISTRICT NO. 2001-01
AMENDED RATE AND METHOD OF APPORTIONMENT OF
SPECIAL TAX FOR IMPROVEMENT AREA NO. I
A Special Tax shall be levied on all Taxable Property in Improvement Area No. I of the City of
Rancho Cucamonga Community Facilities District No. 2001-01 and collected each Fiscal Year
commencing in Fiscal Year 2002-2003 according to the tax liability determined by the Council,
through the application of the rate and method of appodionment of the Special Tax set forth
below. All Taxable Property shall be taxed to the extent and in the manner herein provided.
I. DEFINITIONS
This Amended Rate.and Method of Appodionment employs temqs defined below and
terms defined in the Rate and Method of Appodionment for Improvement Area No. 2 of
the City of Rancho Cucamonga Community Facilities District No. 2001-01 ("IA No. 2").
When necessary, terms defined in the latter shall be distinguished from terms defined in
the former by including the wo~s "IA No. 2" pdor to the defined term. The terms
hereina~er set forth have the following meanings: "'
"Acre or Acreage" means the land area of an Assessor's Parcel as showil on arl
Assessor's 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 recorded County parcel map. The square footage of an Assessor's Parcel is equal
to the Acreage of such parcel multiplied by 43,560.
"ACt" means the Mello-Roos Community Facilities Act of 1982, as amended, being
Chapter 2.5 of Pad 1 of Division 2 of Title 5 of the Government Code of the State of
California.
"Administrative Fees" or "Administrative Expenses" means the following actual or
reasonably estimated costs directly related to the administration of IA No. 1 and IA No.
2: the costs of computing the IA No. 1 and IA No. 2 Special Taxes; the costs of proparing
the annual IA No. I Special Tax and IA No. 2 Special Tax collection schedules (whether
by the City or designee thereof or both); the costs of collecling the IA No. 1 and IA No. 2
Special Taxes (whether by the City, the County or otherwise); the costs of remitting the
IA No. I and IA No. 2 Special Taxes to the Trustee; the costs of the Trustee (including
its legal counsel) in the discharge of the duties required of it under the Indenture; the
costs to the City, CFD No. 2001-01, or any designee thereof complying with arbitrage
rebate requirements; the costs to the City, CFD No. 2001-01, or any designee thereof
complying with disclosure requirements of the City or CFD No. 2001-01, associated with
applicable Federal and State secudties laws and the Acl; the costs associated with
prepadng IA No. I and/or IA No. 2 Special Tax disclosure statements and responding to _
public inquiries regarding the IA No. I and/or IA No. 2 Special Taxes; the costs to the --'
City, CFD No. 2001-01, or any designee thereof related to an appeal of the IA No. 1
Amended, June 13, 2001 C-1 City of Rancho Cucamonga
Ordinance No. 658
Page 7 of 45
and/or the IA No. 2 Special Tax; the costs associated with the release of funds from an
escrow account; and the City's annual administration fees and third pady expenses.
Administrative Expenses shall also include amounts estimated or advanced by the City
or CFD No. 2001-01 for any other administrative purposes of IA No. I and/or IA No. 2,
including attorney's fees and other costs related to commencing and pursuing any
foreclosure of delinquent IA No. 1 Special Taxes. Under no circumstances shall the
Administrative Expenses include costs related to commencing and pursuing any
foreclosure of delinquent Special Taxes in IA No. 2.
"Apartment Property" means any Assessor's Parcel of Residential Property that
consists of a building or buildings compdsed of attached residential units available for
rental, but not purchase, by the general public and which are under common
management.
"Assessor" means the Assessor of the County of San Bemardino.
"Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an
assigned Assessors parcel number.
"Assigned Special Tax" means the Special Tax for each Land Use Class of Developed
Properly, as determined in accordance with Section III below.
"Authorized Facilities" means those improvements, as listed on Exhibit "A" to the
Construction Agreement.
"Backup Special Tax" means the Special Tax applicable to each Assessor's Parcel of
Developed Property, as determined in accordance with Section III below.
"Bond Share" means the share of Bonds assigned to a Taxable Parcel as specified in
Section VI.
"Bonds" means any bonds or other indebtedness (as defined in the Act) of CFD No.
2001-01 for Improvement Area No. I or Improvement Area No. 2. whether in one or
more sedes, secured by the levy of Special Taxes.
"CFD No. 2001-01" means the City of Rancho Cucamonga Community Facilities District
No. 2001-01.
"CFD Administrator' means an official of the City, or designee thereof, responsible for
determining the Special Tax Requirement and for levying and collecting the Special
Taxes.
"City" means the City of Rancho Cucamonga, California.
"Construction Agreement" means the Construction Agreement for IA No. 1 and IA No.
2 that was appraved by the Council on June 20, 2001. as it may be modified or
supplemented from time to time.
"Council" means the City Council of the City of Rancho Cucamonga acting as the
. _ legislative body of the CFD under the Act.
Amended, June 13, 2001 C-2 City of Rancho Cucamonga
Ordinance No. 658
Page 8 of 45
"County" means the County of San Bernardino, Califomia. ~.
"Debt Service" means for each Fiscal Year, the total amount of principal and interest
payable on any Bonds, notes or cadificates of padicipalion of the CFD dudrig the
calendar year commencing on January I of such Fiscal Year.
"Developed Property" means for each Fiscal Year, all Taxable Property, exclusive of
Taxable Property Owner Association Property or Taxable Public Property, for which a
building permit for new construction or renovations was issUed pdor to January I of the
previous Fiscal Year.
"Final Mapped Property" means, for each Fiscal Year, all Taxable Property, exclusive
of Developed Properly, Taxable Property Owner Association Property or Taxable Public
Property, which as of January I of the previous Fiscal Year was located within a Final
Subdivision. The term "Final Mapped Properly" shall include any parcel map or
subdivision map or portion thereof that creates individual lots for which a building permit
may be issued. including parcels that are designated as a remainder parcel.
"Final Subdivision" means a subdivision of properly within (i) a final map, or podion
thereof approved by the City pursuant to the Subdivision Map Act (Califomia
Government Code Section 66410 et seq.) and recorded wilh the County Recorder that
creates individual lots for which building permits may be issued, or (it) for condominiums,
a final map, or podion thereof, approved by the City and a condominium plan recorded
pursuant to California Civil Code Section 1352 that creates individual lots for which
building permits may be issued.
"Fiscal Year" means the period starling on July I and endin~J the following June 30.
"IA No. I and IA No. 2 Bonds" means any bonds or other debt (as defined in Section
53317(d) of the Act), whether in one or more series, issued by CFD No. 2001-01 for both
IA No. I and IA No. 2 under the Act.
"Improvement Area No, 1" or "IA No. 1" means Improvement Area No. I of CFD No.
2001-01, as identified on the boundary map for CFD No. 2001-01.
"Improvement Area No. 2" or "IA No. 2" means Improvement Area No. 2 of CFD No.
2001-01, as identified on the boundary map for CFD No. 2001-01.
"Indenture" means the indenture, fiscal agent agreement, resolution or other instrument
pursuant to which IA No. I and IA No. 2 Bonds are issued, as modified, amended and/or
supplemented from time to time, and any instrument replacing or supplementing the
"Intermediate Special Tax" means the Special Tax applicable to each Assessor's
Parcel of Final Mapped Property, as determined in accordance with Section III below.
"Land Use Class" means any of the classes listed in Table 1.
"Maximum Annual Special Tax" means the greatest amount of Special Tax,
determined in accordance with Section III below, which may be levied in any Fiscal Year
on any Assessor's Parcel based on its Land Use classificatiem.
Amended, June 13, 2001 C-3 City of Rancho Cucamonga
" Ordinance No. 658
Page 9 of 45
"Multi-Family Residential (MFR)" means Residential property that shares'a common
wall between one or more residential units, or a parcel that contains more than one
Single Family Residence.
"Non-Residential Floor Area" means all of the square footage of usable area within
the perimeter of a non-residential structure, not including any carport, walkway, garage,
overhang, or similar area. The determination of Non-Residential Floor Area shall be
made by reference to the building permit(s) issued for such Assessor's Parcel.
aNon-Residential Property" means all Developed Property for which a building
permit(s) was issued for a non-residential use.
"Other Residential Property" means all Developed Property for which a building
permit(s) was issued for a residential use.
"Outstanding Bonds" means all IA No. I and IA No. 2 Bonds, which are deemed to be
outstanding under the Indenture.
"Parcel" means any County of San Bemardino Assessor's Parcel that is within the
boundades of the CFD, based on the equalized tax rolls of the County of San Bernardino
as of january I in the prior Fiscal Year.
"Partial Prepayment" means a prepayment of a portion of the Special Tax obligation
applicable to a parcel of Taxable Properly as set forth in Section VI.
"Property Owner Association Property" means any property within the boundaries of
IA No. I owned in fee, dedicated to or subject to an easement benefiting a property
owner association, including any master or sub-association. However, notwithstanding
the above, any of such property which constitutes the "pad-area" located directly under a
residential or non-residential building shall not be considered Property Owner
Association Property.
"Proportionately" or "Proportionate" means, for Developed Property and IA No. 2
Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special
Tax is equal for all Assessor's Parcels of Developed Property and IA No. 2 Developed
Property. For Undeveloped Property and IA No. 2 Undeveloped Property,
"Proportionately" means that the ratio of the actual Special Tax levies per Acre to the
Maximum Special Tax per Acre is equal for all Assessor's Parcels of Undeveloped
Property and IA No. 2 Undeveloped Property. The term "Propodionately" may similady
._ be applied to other categories of Taxable Property as listed in Section IV below.
"Public Property" means any property within the boundaries of IA I~1o. I the ownership
of which is transferred to a public agency on or after the date of formation of CFD No.
2001-01 and is used for rights-of-way or any other purpose and is owned by or
dedicated to the federal government, the State of Califomia, the County, the City or any
other public agency; provided however that any property owned by a public agency and
leased to a pdvate entity and subject to taxation under Section 53340.1 of the Act shall
be taxed and classified in accordance with its use.
Amended, June 13, 2001 C-4 City o~ Rancho Cucamonga
Ordinance No. 658
Page 10 of 45
"RMA" means this Amended Rate and Method of Appodionment.
"Residential Properb/" means all Assessor's Parcels of Developed Property for which
a building permit has been issued for purposes of constructing one or more residential
dwelling units.
"Resolution of Formation" means the Resolution passed by the Council authorizing
the formation of CFD No. 2001-01.
"Resolution of Issuance" means the Resolution passed by the Council authorizing the
issuance of bonds.
"Special Tax" means any tax levied within the 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 that amount required in any Fiscal Year to: (i) pay
Debt Service on all Outstanding Bonds; (it) pay periodic costs on the Outstanding Bonds,
including but not limited to, credit enhancement and rebate payments on the
Outstanding Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to
establish or replenish any reserve funds for all Outstanding Bonds; (v) accumulate funds
to pay directly for acquisition or construction of Authorized Facilities, and (vi) pay for
reasonably anticipated delinquent Special Taxes based on the delinquency rate for
Special Taxes levied in the previous Fiscal Year; less (vii) a credit for funds available to
reduce the annual Special Tax levy, as determined by Ihe CFD Administrator pursuant to
the Indenture.
"State" means the State of Califomia.
"Taxable Property" means all of the Assessor's Parcels within the boundaries of IA No.
1, which are not exempt from the levy of the Special Tax pursuant to law or Section VIII
below.
"Taxable Property Owner Association Property" means all Assessor's ' Parcels of
Property Owner Association Property within IA No. 1 that are not exempt from the levy of
Special Tax pursuant to Secfion VIII below.
"Taxable Public Property" means all Assessor's Parcels of Public Property that are not
exempt from the levy of Special Tax pursuant to Section VIII below.
"Tax-Exempt Parcel" means, as of January I of each year, (i) any parcel owned by a
governmental entity, or irrevocably offered for dedica~jon to a governmental entity, (ii)
any Parcel which constitutes public right-of-way or which is encumbered by an
unmanned 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 San
Bernardino County Assessor. Notwithstanding the foregoing, (i) a Taxable Parcel
acquired by a public entity after the adoption of the Resolution of Formation by means of
negotiated transaction, or by gift or devise, or by eminent domain proceedings, shall
remain a Taxable Parcel, and (ii) if a governmental entity owning a Tax-Exempt Parcel,
Amended, June 13, 2001 C-5 City of Rancho Cucamonga
Ordinance No. 658
Page 11 of 45
including a Tax-Exempt Parcel held in trust for any benefibiary, 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. Tax-Exempt Parcels include the specific
parcels, or their successor parcels.
"Trustee" means the trustee or fiscal agent under the Indenture.
"Undeveloped Property" means, for each Fiscal Year; all Taxable Property not
classified as Developed Property, Final Mapped Property, Taxable Property Owner
Association Property, or Taxable Public Property.
' II, CLASSIFICATION OF PARCELS
Each Fiscal Year, all Taxable Properly within IA No. I 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 appodionment determined pursuant to
Sections Ill and IV below.
III 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 dedved by
application of the Backup Special Tax.
(b). Assi~lned Special Tax
The Assigned Special Tax for each Land Use Class is shown in Table 1.
Amended, June 13, 2001 C-6 City of Rancho Cucamonga
Ordinance No. 658
Page 12 of 45
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 Properly => 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. $I ,515 per residential
dwelling unit
4 Single Family Properly 2,350 to 2,649 sq. ft. $1,301 per residential
dwelling unit
5 Single Family Property 2,150 to 2,349 sq. ~. $1,217 per residential
dwelling unit
6 Single Family Properly 1,950 to 2,149 sq. ft. $1,119 per residential
dwelling unit
7 Single Family Properly < 1,950 sq. ft. $938 per residential
dwelling unit
8 Apadment 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 jevied
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 Assessors 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 Assessors 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 Administretor's allocation to each type of property shall
be final.
Amended, June 13, 2001 C-7 City of Rancho Cucamonga
Ordinance No. 658
Page 13 of 45
(d). Backup Special Tax
The Backup Special Tax shall equal $10,768 per Acre.
2. Final Mapped Property
(a). Intermediate Special Tax
The Intermediate Special Tax shall only be levied on Assessor's Parcels
of 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 Properly 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 or 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 Properly
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 Properly planned for residential
development shall be celculated 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 Properly 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.
Amended, June 13, 2001 C-8 City of Rancho Cucamonga
Ordinance No. 658
Page 14 of 45
IV, 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 IA No. 2 Special Tax, until the
amount of Special Taxes and IA No. 2 Special Taxes 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 Assigned Special Tax; and the Council
shall be notified by the CFD Administrator that under the terms of the IA No. 2 RMA, the
IA No. 2 Special Tax shall be levied on each Assessor's Parcel of IA No. 2 Developed
Property in an amount equal to 100% of the applicable IA No. 2 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 Council shall be notified by the CFD Administrator that under
the terms of the IA No. 2 RMA, the IA No. 2 Special Tax shall be levied on each
Assessors Parcel of IA No, 2 Final Mapped Property at up to 100% of the IA No. 2
Intermediate Special Tax for IA No. 2 Final Mapped Property, with the levy on Final
Mapped Property and IA No. 2 Final Mapped Property being Propodionate;
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 to $7,500 per Acre; and the Council shall be
notified by the CFD Administrator that under the terms of the IA No. 2 RMA, the IA No. 2
Special Tax shall be levied on each Assessor's Parcel of IA No. 2 Undeveloped Property
at up to $7,500 per Acre, with the levy on Undeveloped Properly and IA No, 2
Undeveloped Property being Proportionate;
Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the
first three 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 Council shall be notified by the CFD Administrator that under the terms of the IA No.
2 RMA, the IA No. 2 Special Tax shall be levied on each Assessor's Parcel of IA No. 2
Final Mapped Property and IA No. 2 Undeveloped Property at up to 100% of the IA No.
2 Maximum Special Tax for IA No. 2 Final Mapped Property and IA No. 2 Undeveloped
Property, with the levy on Final Mapped Property and Undeveloped Property and IA No.
2 Final Mapped Property and IA No. 2 Undeveloped Property being Propodionate;
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
Assessors Parcel of Developed Properly 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 Council shall be notified by the CFD Administrator that
under the terms of the IA No. 2 RMA, the levy of the IA No. 2 Special Tax on each
Assessor's Parcel of IA No. 2 Developed Property whose IA No. 2 Maximum Special Tax
Amended, June 13, 2001 C-9 City of Rancho Cucamonga
Ordinance No. 658
Page 15 0f45
is determined through the application of the IA No. 2 B~ckup Special Tax shall be
increased in equal percentages from the IA No. 2 Assigned Special Tax up to the IA No.
2 Maximum Special Tax for each such Assessor's Parcel, with the levy on Developed
Properly and IA 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 Spedal Tax for Taxable Properly Owner Association
Properly or Taxable Public Property; and the Council shall be notified by the CFD
Administrator that under the terms of the IA No. 2 RMA, the IA No. 2 Special Tax shall,
be levied on each Assessor's Parcel of IA No. 2 Taxable Property Owner Association
Property or IA No. 2 Taxable Public Property at up to the IA No. 2 Maximum Special Tax
for IA No. 2 Taxable Property Owner Association Properly or IA No. 2 Taxable Public
Property, with the levy on Taxable Property Owner Association Property or Taxable
Public Properly and IA No. 2 Taxable Property Owner Association Property or IA No. 2
Taxable Public Properly being Proportionate.
Notwithstanding the above the Council may, in any Fiscal Year, levy Proportionately less
than 100% of the Assigned Special Tax and the IA No. 2 Assigned Special Tax in step
one of Section IV (above), when (i) the Council is no longer required to levy a Special
Tax pursuant to steps two through six above and the Council is no longer required to
levy an IA No. 2 Special Tax pursuant to steps two through six in Section IV of the IA No.
2 RMA in order to meet the Special Tax Requirement; (ii) all authorized IA No. I and IA
No. 2 Bonds have already been issued or the Council has covenanled that it will not
issue any additional IA No. I and IA No. 2 Bonds (except refunding bonds) to be
supported by Special Taxes and IA 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 of Residential Property for whish an occupancy permit for
pdvate 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 IA No. 1 or IA No. 2, except for those Residential Propedies whose owners are
also delinquent or in default on their Special Tax payments for one or more other
properties within IA No. I or IA No. 2.
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 Council may provide in the Indenture or in the Resolution of
Issuance for (i) ether means of collecting the Special Tax, including direct billings thereof
to the property owners; and (ii) judicial foreclosure of delinquent Special Taxes.
Amended, June 13, 2001 C-10 City of Rancho Cucamonga
Ordinance No. 658
Page 16 of 45
VI. DISCHARGE OF SPECIAL TAX OBLIGATION
Property owners may prepay and permanently satisfy the Special Tax Obligation by a
cash settlement with the City as permitted under Government Code Section 53344.
Propayment is permitted only under the following conditions:
The following definition applies to this Section VI:
"CFD Public Facilities Costs" means either $10,500,000 in 2001 dollars, which shall
increase by the Construction Inflation Index on July 1; 2002, and on each July 1
thereafter, or such lower number as (i) shall be determined by the CFD Administrator as ' ',
sufficient to acquire or construct the Authorized Facilities to be Financed by IA No. I and _.
IA No. 2 under the authorized Mello-Roos financing program for CFD No. 2001-01, or
(ii) shall be determined by the Council concurrently with a covenant that it will not issue
any more IA No. I and IA No. 2 Bonds (except refunding bonds) to be supported by
Special Taxes and IA No. 2 Special Taxes.
"Construction Fund" means the fund (regardless of its name) established pursuant to
the Indenture to hold funds, which are currently available for expenditure to acquire or
construct the Authorized Facilities.
"Construction Inflation Index" means the annual percentage change in the
Enf:lineerin.q News-Record Build ng Cost Index for the City of Los Angeles, measured as
of the calendar year, which ef~ds in the previous Fiscal Year. In the event this index
ceases to be published, the Inflation Index shall be another index as determined by the
CFD Administrator that is reasonably comparable to the En.qineerin.q News-Record
Building Cost Index for the City of Los Angeles.
"Future Facilities Costs" means the CFD Public Facilities Costs minus (i) costs
previously paid from the Co~nstruction Fund to acquire or construct the Authorized
Facilities, (ii) monies currently on deposit in the Construction Fund, and (iii) monies
currently on deposit in an escrow or other earmarked fund that are expected to be
available to finance Public Facilities Costs.
"Outstanding Bonds" means all Previously Issued Bonds, which remain outstanding
as of the first interest and/or principal payment date following the current Fiscal Year.
"Previously Issued Bonds" means all IA No. I and IA No. 2 Bends that have been '
issued prior to the date of propayment.
1. Prepayment in Full
The Special Tax Obligation applicable to an Assessor's Parcel in IA No. I may be
prepaid and the obligation of the Assessor's Parcel to pay any Special Tax 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 propay the Special Tax Obligation shall provide the CFD Administrator with
written notice of intent to prapay. The CFD Administrator shall provide the owner with a
Amended, June 13, 2001 C-11 City of Rancho Cucamonga
Ordinance No. 658
Page 17 of 45
statement of the Prepayment Amount for such Assessor's Parcel within thirty (30) days
of the request and may charge a reasonable fee for providing this service, Prepayment
must be made not less than 60 days prior to any redemption date for the IA No. I and IA
No. 2 Bonds to be redeemed with the proceeds of such prepaid Special Taxes.
The Prepayment Amount (defined below) shall be calculated as summarized below
(capitalized terms as defined below):
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Prepayment Amount
plus Defeasanca Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
Total: equals Prepayment Amount
As of the proposed date of prepayment, the Prepayment Amount (defined below) shall be
calculated as follows:
Paragraph No.:
1. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel.
2. For Assessor's Parcels of Developed Properly, compute the Assigned Special
Tax and Backup Special Tax. For Assessor's Parcels of Final Mapl~ed Property
or Undeveloped Property for which a building permit has been issued, compute
the Assigned Special Tax and Backup Special Tax for that Assessor's Parcel as
though it was already designated as Developed Property, based upon the
.. building permit which has a~ready been issued for that Assessor's Parcel. For
-- Assessor's Parcels of Undeveloped Property compute the Maximum Special Tax.
3. (a) Divide the Assigned Special Tax computed pursuant to paragraph 2 by the
total estimated Assigned Special Taxes for IA No. 1 and IA No. 2 based on the
Developed Property Special-Taxes and IA No. 2 Developed Property Special
Taxes which could be levied in the current Fiscal Year on all expected
development through build-out of IA No. I and IA No. 2 as determined by the
CFD Administrator, excluding any Assessor's Parcels for which the Special Tax
Obligation has been prepaid, and
(b) Divide the Backup Special Tax or Maximum Special Tax computed pursuant
to paragraph 2 by the toil estimated Backup Special Taxes and IA No. 2 Backup
: -. .... ' Special Taxes at build-out for IA No. 1 and IA No. 2, excluding any Assessor's
Parcels for which the Special Tax Obligation has been prepaid.
4. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the
Outstanding Bonds to compute the amount of Outstanding 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 (expressed as a percentage), if any, on the
Amended, June 13, 2001 C-12 City of Ranch9 Cucamonga
Ordinance No. 658 Page 18 of 45
Outstanding Bonds to be redeemed at the first .available call date (the
"Redemption Premium").
6. Compute the current Future Facilities Costs.
7. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the
amount determined pursuant to paragraph 6 to compute the amount of Future
Facilities Costs to be prepaid (the "Future Facilities Prepayment Amount").
8. Compute the amount needed to pay interest on the Bond Redemption Amount
from the first bond interest and/or principal payment date following the current
Fiscal Year until the eadiest redemption date for the Outstanding Bonds.
9. Compute the minimum amount the CFD Administrator reasonably expects to -,
dedve from the reinvestment of the Prepayment Amount Jess the Future Facilities '
Amount and the Administrative Fees and Expenses from the date of prepayment
until the redemption date for the Outstanding Bonds to be redeemed with the
prepayment.
10. Take the amount computed pursuant to paragraph 8 and subtract the amount
computed pursuant to paragraph 9 (the "Defeasance Amount").
11. Verify the administrative fees and expenses of IA No. I and IA No. 2, including
the costs of computation of the prepayment, the costs to invest the prepayment
proceeds, the costs of redeeming IA No. I and IA No. 2 Bonds, and the costs of
recording any notices to evidence the prepayment and the redemption (the
"Prepayment Administrative Fees and Expenses=).
12. If reserve funds for the Outstanding Bonds, if a~y, are at or above 100% of the
reserve requirement (as defined in the indenture) on the prepayment date, s
reserve fund credit shall be calculated as a reduction in the applicable reserve
fund for the Outstanding Bonds to be redeemed pursuant to the prepayment (the
"Reserve Fund Credit"). No Reserve Fund Credit shall be granted if reserve
funds are below 100% of the reserve requirement.
13. If any capitalized interest for the Outstanding Bonds will not have been expended
at the time of the first interest and/or pdncipa~ payment following the current
Fiscal Year, a capitalized interest credit shall be calculated by multiplying the
larger quotient computed pursuant to paragraph 3(a) or 3(b) by the expected .:":
balance in the capitalized interest fund after such first interest and/or principal
payment (the "Capitalized Interest Credit").
14. The Special Tax Obligation is equal to the sum of the amounts computed
pursuant to paragraphs 4, 5, 7, 10, and 11, less the amounts computed pursuant
to paragraphs 12 and 13 (the "Prepayment Amount").
15. From the Prepayment Amount, the sum of the amounts computed pursuant to
paragraphs 4, 5, 10, 12, and 13 shall be deposited into the appropriate fund as
established under the Indenture and be used to retire Outstanding Bonds or
make Debt Service payments, The amount computed pursuant to paragraph 7
Amended, June 13, 2001 C-13 City of Rancho Cucamonga
Ordinance No. 658
Page 19 of 45
shall be deposited into the Construction Fund. The ~amount computed pursuant
- to paragraph 11 shall be retained by CFD No. 2001-01.
The Prepayment Amount may be sufficient to redeem an amount other than a
$5,000 increment of IA No. I and IA No. 2 Bonds. In such cases, the increment
above $5,000 or integral multiple thereof will be retained in the appropriate fund
established under the Indenture to redeem IA No. 1 and IA No. 2 Bonds be used:
with the next prepayment of IA No. I and IA No. 2 Bonds.
The CFD Administrator will confirm that all previously levied Special taxes have
been paid in full. With respect to any Assessors Parcel that is prepaid in full,
once the CFD Administrator has confimned that all previously levied Special,
taxes have been paid, 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 Assessors Parcel, and the obligation of
such Assessor's Parcol to pay the Special Tax shall cease.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed
unless the aggregate amount of Maximum Special Taxes and IA No. 2 Maximum
Special Taxes that may be levied on Taxable Property and IA No. 2 Taxable
Property, respectively, after the proposed prepayment is at least 1.1 times the
maximum annual Debt Service on all Outstanding Bonds.
2. Prepayment in Part
The Special Tax on an Assessor's Parcel of Developed Property, or an Assessor's
_ Parcel of Final Mapped Property or Undeveloped Property for which a building permit
,- has been issued may be partially prepaid. The amount of the prepayment shall be
'._' calculated as in Section VI.1; except that a partial prepayment shall be caIGulated
according to the following formula:
PP=PExF.
These terms have the following meaning:
PP = the partial prepayment
PE = the Prepayment Amount calculated according to Section VI. 1
F = the percentage by which the owner of the Assessor's Parcel(s) is partially
prepaying the Special Tax.
The owner of any Assessor's Parcel who desires such prepayment shall notify the CFD
Administrator of (i) such owner's intent to partially prepay the Special Tax, (ii) the
percentage by which the Special Tax shall be prepaid, and (iii) the company or agency ~
that will be acting as the escrow agent, if any. The CFD Administrator shall provide the
owner with a statement of the amount required for the partial prepayment of the Special
Tax for an Assessor's Parcel within thirty (30) days of the request and may charge a
reasonable fee for providing this service.
With respect to any Assessors Parcel that is partially prepaid, the City shall (i) distribute
the funds remitted to it according to Section VI.1, and (ii) indicate in the records of CFD
No, 2001-01 that there has been a partial prepayment of the Special Tax and that a
. _ Amended, June 13, 2001 C-14 City of Rancho Cucamonga
Ordinance No. 658 Page 20 of 45
portion of the Special Tax with respect to such Asses~or's Parcel, equal to the
outstanding percentage (1.00 - F) of the remaining Maximum Annual Special Tax, shall
continue to be levied on such Assessor's Parcel pursuant to Section IV.
VII. TERM OF "SPECIAL TAX"
The Special Tax shall be levied for a period not to exceed fifty yearn commencing with
Fiscal Year 2002-2003, 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 IA No. I and IA No. 2 Bonds have been paid; and
(ii) all facilities have been acquired and all reimbursements to the developer have been
paid pursuant to the Construction Agreement.
VIII. EXEMPTIONS
No Special Tax shall be levied on up to 62.15 Acres of Property Owner Association
Property or Public Property. Tax-exempt status will be assigned by the CFD
Administrator in the chmnologicel order in which property becomes Property Owner
Association Properly or Public Property. However, should an Assessor's Parcel no
longer be classified as Property Owner Association Property or Public Property, its
status as a property exempt from the levy of Special Taxes will be revoked.
Property Owner Association Property or Public Property that is not exempt from Special
Taxes under this section shall be subject to the levy of the Special Tax and shall be
taxed as part of the sixth step in Section IV above, at up to 100% of the applicable
Maximum Special Tax for Taxable Property Owner Association Property or Taxable
Public Property.
Amended, June 13, 2001 C-15 City of Rancho Cucamonga
Ordinance No. 658
Page 21 of 45
CITY OF RANCHO CUCAMONGA
COMMUNITY FACILITIES DISTRICT NO. 2001-01
AMENDED RATE AND METHOD OF APPORTIONMENT OF
SPECIAL TAX FOR IMPROVEMENT AREA NO. 2
A Special Tax shall be levied on all Taxable Property in Improvement Area No. 2 of the City of
Rancho Cucamonga Community Facilities District No. 2001-01 (IA No. 2) and collected each
Fiscal Year commencing in Fiscal Year 2002-2003 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 betow. All Taxable Property shall be taxed to the extent and in the manner herein
provided.
III. DEFINITIONS **
This Amended Rate and Method of Apportionment employs terms defined below and
terms defined in the Rate and Method of Apportionment for Improvement Area No. I of -.
the City of Rancho Cucamonga Community Faci[ifies Distdct No. 2001-01 ("IA No: 1"),
When necessary, terms defined in the latter shall be distinguished from terms defined in
· the former by including the words "IA No. 1" pdor to the defined term. The terms
hereina~er set forth have the following meanings:
"Acre or Acreage" means the land area of an Assessor's 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 recorded County parcel map. The square footage of an Assessor's Parcel is equal
to the Acreage of such parcel multiplied by 43,560.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, bein9
Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of
California.
"Administrative Fees" or "Administrative Expenses" means the following actual or
reasonably estimated costs directly related to the administration of IA No. 1 and IA No.
2: the costs of computing the IA No. 1 and IA No. 2 Special Taxes; the costs of preparing
the annual IA No. I Special Tax and IA No. 2 Special Tax collection schedules (whether
by the City or designee thereof or both): the costs of collecting the IA No. 1 and IA No. 2
Special Taxes (whether by the City, the County or otherwise); the costs of remitting the
IA No. 1 and IA No. 2 Special Taxes to the Trustee; the costs of the Trustee (including '-
its legal counsel) in the discharge of the duties required of it under the Indenture; the
costs to the City, CFD No. 2001-01, or any designee thereof complying with arbitrage
rebate requirements; the costs to the City, CFD No. 2001-01, or any designee thereof
complying with disclosure requirements of the City or CFD No. 2001-01 associated with
applicable Federal and State securities laws and the Act; the costs associated with
preparing IA No. I and/or IA No. 2 Special Tax disclosure statements and responding to
public inquiries regarding the IA No. I and/or IA No. 2 Special Taxes; the costs to the
City, CFD No. 2001-01, or any designee thereof related to an appeal of the IA No. t
and/or the IA No. 2 Special Tax; the costs associated with the release of funds from an
Amended, June 13, 2001 C-16 City of Rancho Cucamonga
Ordinance No. 658
Page 22 of 45
escrow account; and the City's annual administration fees and third pady expenses.
Administrative Expenses shall also include amounts estimated or advanced by the City
or CFD No. 2001-01 for any other administrative purposes of IA No. I and/or IA No. 2,
including attorney's fees and other costs related to commencing and pursuing any
foreclosure of delinquent Special Taxes in IA No. 1. Under no circumstances shall the
Administrative Expenses include costs related to c~mmencing and pursuing any
foreclosure of delinquent Special Taxes in IA No. 2.
"Apartment Property" means any Assessor's Parcel of Residential Property that
consists of a building or buildings comprised of attached residential units available for
rental, but not purchase, by the general public and which are under common
management.
"Assessor" means the Assessor of the County of San Bemardino.
"Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an
assigned Assessor's parcel number.
"Assigned Special Tax" means the Special Tax for each Land Use Class of Developed
Property, as determined in accordance with Section III below.
"Authorized Facilities" means f~hose improvements, as listed on Exhibit "A" to the. '
Construction Agreement·
.-- "Backup Special Tax" means the Special Tax applicable to each Assessor's Parcel of
" Developed Property, as determined in accordance with Section III below.
"Bond Share" means the share of Bonds assigned to a Taxable Parcel as specified in
Section VI.
"Bonds" means any bonds or other indebtedness (as defined in the Act) of CFD No.
2001-01 for Improvement Area No. I or Improvement Area No. 2, whether in one or
more sedes, secured by the levy of Special Taxes.
"CFD No. 2001-01" means the City of Rancho Cucamonga Community Facilities District
No. 2001-01.
"CFD Administrator" means an official of the City, or designee thereof, responsible for
determining the Special Tax Requirement and for levying and collecting the Special
Taxes.
"City" means the City of Rancho Cucamonga, California.
"Construction Agreement" means the Construction Agreement for IA No. I and IA No.
2 that was approved by the Council on June 20, 2001, as it may be modified or
supplemented from time to time.
"Council" means the City Council of the City of Rancho Cucamonga acting as the
legislative body of the CFD under the Act.
· -- "County" means the County of San Bernardino, California.
Amended, June 13, 2001 C-17 City of Rancho Cucamonga
Ordinance No. 658
Page 23 of 45
"Debt Service" means for each Fiscal Year, the total amount of principal and interest
payable on any Bonds, notes or certificates of participation of the CFD during the
calendar year commencing on January I of such Fiscal Year.
"Developed Property" means for each Fiscal Year, all Taxable Property, exclusive of
Taxable Property Owner Association Property or Taxable Public Property, for which a
building permit for new construction or renovations was issued prior to January I of the
previous Fiscal Year.
"Extraordinary Special Tax" means a Special Tax levied in any Fiscal Year as
necessary to satisfy the Extraordinary Special Tax Requirement.
"Extraordinary Special Tax Requirement" means that amount required in any Fiscal
Year to: (i) pay Administrative Expenses related to commencing and pursuing any
foreclosure of delinquent Special Taxes in IA No. 2. (ii) pay any amounts required to
establish or replenish any reserve funds for all Outstanding Bonds due to delinquencies
in the payment of Special Taxes levied in IA No. 2; and (iii) pay for reasonably
anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes
levied in the previous Fiscal Year in IA No. 2; less (iv) a credit for funds available to
reduce the Extraordinary Special Tax levy, as determined by the CFD Administrator
pursuant to the Indenture. Under no circumstances shall the Extraordinary Special Tax
Requirement be impacted by delinquencies in the payment of Special Taxes by ....
Assessor's Parcels in IA No. ;I. "'
"Final Mapped Property" means, for each Fiscal Year, all Taxable Property, exclusive
of Developed Property, Taxable Property Owner Association Property or Taxable Public
Property, which as of January I of the previous Fiscal Year was located within a Final
Subdivision. The term "Final Mapped Property" shall include any parcel map or
subdivision map or portion thereof that creates individual lots for which a building permit
may be issued, including parcels that are designated as a remainder parcel.
"Final Subdivision" means a subdivision of property within (i) a final map, or portion
thereof approved by the City pursuant to the Subdivision Map Act (California
Government Code Section 66410 et seq.) and recorded with the County Recorder that
creates individual lots for which building permits may be issued, or (ii) for condominiums,
a final map, or portion thereof, approved by the City and a condominium plan recorded
pursuant to California Civil Code Section 1352 that creates individual lots for which -
building permits may be issued.
"Fiscal Year" means the pedod starting on July I and ending the following June 30.
"Improvement Area No. 1" or "IA No. 1" means Improvement Area No. 1 of CFD No.
2001-01, as identified on the boundary map for CFD No. 2001-01.
"Improvement Area No. 2" or "IA No. 2" means Improvement Area No. 2 of CFD No.
2001-01, as identified on the boundary map for CFD No. 2001-01.
"Indenture" means the indenture, fiscal agent agreement, resolution or other instrument -'
pursuant to which Bonds are issued, as modified, amended and/or supplemented from
time to time, and any instrument replacing or supplementing the same.
Amended, June 13, 2001 C-18 City of Rancho Cucamonga
Ordinance No. 658
Page 24 of 45
"Intermediate Special Tax" means the Special Tax applicable to each Assessor's
Parcel of Final Mapped Property, as determined in accordance with Section III below.
"Land Use Class"
means any of the classes listed in Table 1.
"Maximum Annual Special Tax" means the greatest amount of Special Tax,
determined in accordance with Section III below, which maybe levied in any Fiscal Year
on any Assessor's Parcel based on its Land Use classification.
"Multi-Family Residential (MFR)" means Residential property that shares a common
wall between one or more residential units, or a parcel that contains more than one
Single Family Residence.
"Non-Residential Floor Area" means all of the square footage of usable area within
the perimeter of a non-residential structure, not including any carport. walkway, garage,
overhang, or similar area. The determination of Non-Residential Floor Area shall be
made by reference to the building permit(s) issued for such Assesscr's Parcel.
,
.... Non-Residential Property" means all Developed Property for which a bdildi'l~ - ......
,_ permit(s) was issued for a non-residential use.
_ "Other Residential Property" moans all Developed' Property for which a building
permit(s) was issued for a residential use.
"Outstanding Bonds" mean all Bonds, which are deemed to be outstanding under the
Indenture.
"Parcel" means any County of San Bemardino Assessor's Parcel that is within the
boundades of the CFD, based on the equalized tax rolls of the County of San Bernardino
as of January 1 in the prior Fiscal Year.
"Partial Prepayment" means a prepayment of a podion of the Special Tax Obligation
applicable to a Parcel of Taxable Property as set forth in Section VII.
"Property Owner Association Property" means any property within the boundades of
IA No. 2 owned in fee, dedicated to or subject to an easement benefiting a property
owner association, including any master or sub-association. However, notwithstanding
the above, any of such property which constitutes the "pad-area" located directly under a
residential or non-residential building shall not be considered Property Owner
Association Property.
"Proportionately" or "Proportionate" means. for Developed Property and IA No. 1
Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special
... Tax is equal for all Assessor's Parcels of Developed Property and IA No. 1 Developed
'- Property. For Undeveloped Property and IA No. I Undeveloped Property,
._ "Propodionately" means that the ratio of the actual Special Tax levies per Acre to the
Maximum Special Tax per Acre is equal for all Assessor's Parcels of Undeveloped
' Property and IA No. I Undeveloped Property. The term "Proportionately" may similarly
be applied to other categories of Taxable Property as listed in Section IV below.
Amended, June 13, 2001 C-19 City of Rancho Cucamonga
Ordinance No. 658
Page 25 of 45
"Public Property" means any property within the boundaries'of IA No. 2 the ownership '-'
of which is transferred to a public agency on or after the date of formation Of CFD No.
2001-02 and is used for rights-of-way or any other purpose and is owned by or
dedicated to the federal government, the State of California, the County, the City or any
other public agency; provided however that any properly owned by a public agency and
leased to a private entity and subject to taxation under Section 53340.1 of the Act shall
be taxed and classified in accordance with its use.
"Residential Property" means all Assessor's Parcels of Developed Property for which
a building permit has been issued for purposes of censtmcting one or more residential
dwelling units.
"Resolution of Formation" means the Resolution passed by the Council authorizing
the formation of CFD No. 2001-01.
"Resolution of Issuance" means the Resolution passed by the Council authorizing the
issuance of bonds.
"RMA" means this Rate and Method of Appodionment.
"Special Tax" means any tax levied within the 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 that amount required in any Fiscal Year to: (i) pay
Debt Service on all Outstanding Bonds; (ii) pay periodic costs on the Outstanding Bonds,
including but not limited to, credit enhancement and rebate payments on the
Outstanding Bonds; (iii) pay Administrative Expenses; (iv) accumulate funds to pay
directly for acquisition or construction of Authorized Facilities, (v) pay any amounts
required to establish or replenish any reserve funds for all Outstanding Bonds due to
delinquencies in the payment of Special Taxes levied in IA No. 1; and (vi) pay for
reasonably anticipated delinquent Special Taxes based on the delinquency rate for
Special Taxes levied in the previous Fiscal Year in IA No. I; less (vii) a credit for funds
available to reduce the annual Special Tax levy, as determined by the CFD
Administrator pursuant to the Indenture. Under no circumstances shall the Special Tax
Requirement be impacted by delinquencies in the payment of Special Taxes by
Assessor's Parcels in IA No. 2.
"State" means the State of California.
"Taxable Property" means all of the Assessor's Parcels within the boundades of IA No.
2, which are not exempt from the levy of Special Tax pursuant to law oi' Section IX '
below.
"Taxable Property Owner Association Property" means all Assessor's Parcels of
Property Owner Association Property within IA No. I and IA No. 2 that are not exempt -
from the levy of the Special Tax pursuant to Section IX below
Amended, June 13, 2001 C-20 City of Rancho Cucamonga
'- Ordinance No. 658
.... Page 26 of 45
"Taxable Public Property" means all Assessor's Parcels of Public Property that are not
exempt from the levy of the Special Tax pumuant to Section IX below.
"Tax*Exempt Parcel" means, as of January 1 of each year, (i) any parcel owned by a
governmental 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 San
Bemardino County Assessor. Notwithstanding the foregoing, (i) a Taxable Parcel
acquired by a public entity after the adoption of the Resolution of Formation 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. Tax-Exempt Parcels include the specific
parcels, or their successor parcels.
"Trustee" means the trustee or fiscal agent under the Indenture.
-- "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not
classified as Developed Property, Final Mapped Property, Taxable Property Owner
Association Property. or Taxable Public Property.
IV. CLASSIFICATION OF PARCELS
Each Fiscal Year. all Taxable Property within IA 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 Special Taxes in accordance with the rate and method of apportionment
determined pumuant to Sections III, IV. and V below. ~ ~- - -~ !'. ......
III MAXIMUM SPECIAL TAX:RATE
1. Developed Property
(a). Maximum Special Tax
The Maximum Special Tax f0r each Assessors Parcel classified as
... Developed Property shall be the greater of (i) the amount dedved by
,- application of the Assigned Special Tax or (ii) the amount dedved by
*.~' application of the Backup Special Tax.
Amended, June 13, 2001 C-21 City of Rancho Cucamonga
Ordinance No. 658
Page 27 of 45
(b). Assi~lned Special Tax
The Assigned Special Tax for each Land Use Class is shown in Table 1.
TABLE 1
Assigned Special Taxes for Developed Property
Improvement Area No. 2
Land Use Description Assigned Special Tax
Class
I Apartment Property $237 per unit
2 Other Residential $10,768 per Acre
Property
3 Non-Residential $0.63 per square foot of Non- 2'.
Property Residential Floor Area
(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 prope.rty. based on _ _ .
the amount of Acreage designated for each Land-U~e Class. as-
determined by reference to the site plan approved for such Assessor's
Parcel. The CFD Administrator's allocation to each type of properly shall
be final.
(d). Backup Special Tax
The Backup Special Tax shall equal $10, 061 per Acre.
2, Final Mapped Property
(a). Intermediate Special Tax
The Intermediate Special Tax shall only be levied on Assessors Parcels
of Final Mapped Property. To compute the Intermediate Special Tax
attributable to a Final Subdivision, the Acreage of all Developed Property
Amended, June 13, 2001 C-22 City of Rancho Cucarnonga ~,
· -- Ordinance No. 658
Page 28 of 45
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 Properly 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
Assessors Parcels planned for residential development within that Final
Subdivision (i.e., the number or 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 Properly 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 Properly,
and Undeveloped Property
The Maximum Special T_L~ax for Taxable Property Owner Association Property,
-:=-~ -_ -- :.~ Taxable P~"bli~'F~o6'~r~y, an~'ljndevalop~d Property shall be $10,768 per Acre.
IV. 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 IA No. 1 Special Tax, until the
amount of Special Taxes and IA No. I Special Taxes 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 Parcol of Developed Property
in an amount equal to 100% of the applicable Assigned Special Tax; and the Council
shall be notified by the CFD Administrator that under the terms of the IA No. IRMA, the
IA No. I Special Tax shall be levied on each Assessor's Parcel of IA No. 1 Developed
Property in an amount equal to 100% of the applicable IA No. I Assigned Special Tax;
Amended, June 13, 2001 C-23 City of Rancho Cucamonga
Ordinance No. 658
Page 29 of 45
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 Council shall be notified by the CFD Administrator that under
the terms of the IA No. 1 RMA, the IA No. I Special Tax shall be levied on each
Assessor's Parcel of IA No. I Final Mapped Properly at up to 100% of the IA No. 1
Intermediate Special Tax for IA No. 1 Final Mapped Property, with the levy on Final
Mapped Property and IA 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 to $7,500 per Acre; and the Council shall be
notified by the CFD Administrator that under the terms of the IA No. IRMA, the IA No. 1
Special Tax shall be levied on each Assessor's Parcel of IA No. I Undeveloped Property
at up to $7,500 per Acre, with the levy on Undeveloped Properly and IA No. 1
Undeveloped Property being Proportionate;
Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the
first three steps have been completed, the Special Tax shall be levied on each
Assessors 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 Council shall be notified by the CFD Administrator that under the terms of the IA No.
1 RMA, the IA No. I Special Tax shall be levied on each Assessor's Parcel of IA No. 1
Final Mapped Property and IA No. 1 Undeveloped Property at up to 100% of the IA No.
I Maximum Special Tax for IA No. I Final Mapped Property and IA No. I Undeveloped
Property, with the levy on Final Mapped Property and Undeveloped Property and IA No.
1 Final Mapped Property and IA No. I 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
Assessors 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 Council shall be notified by the CFD Administrator that
under the terms of the IA No. 1 RMA, the levy of lhe IA No. 1 Special Tax on each
Assessor's Parcel of IA No. I Developed Property whose IA No. I Maximum Special Tax
is determined through the application of the IA No. 1 Backup Special Tax shall be
increased in equal percentages from the IA No. I Assigned Special Tax up to the IA No.
1 Maximum Special Tax for each such Assessor's Parcel, with the levy on Developed
Properly and IA No. I Developed Property being. Propodionate
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 Council shall be notified by the CFD
Administrator that under the terms of the IA No. IRMA, the IA No. I Special Tax shall
be levied on each Assessor's Parcel of IA No. 1 Taxable Property Owner Association
Property or IA No. I Taxable Public Property at up to the IA No. I Maximum Special Tax
for IA No. I Taxable Property Owner Association Property or IA No. I Taxable Public
Property, with the levy on Taxable Property Owner Association Property or Taxable
Amended, June 13,2001 C-24 City of Rancho Cucamonga
Ordinance No. 658
Page 30 of 45
Public Property and IA No. 1 Taxable Property Owner AssOCiation Property or IA No, 1
Taxable Public Properly being Proportionate.
Notwithstanding the above the Council may, in any Fiscal Year, levy Proportionately less
than 100% of the Assigned Special Tax and the IA No. I Assigned Special Tax in step
one of Section iV (above), when (i) the Council is no longer required to levy a Special
Tax pursuant to steps two through six above and the Council is no longer required to
levy an IA No. 1 Special Tax pursuant to steps two through six in Section IV of the IA No.
1 RMA in order to meet the Special Tax Requirement; (ii) all authorized Bonds have
,.. already been issued or the Council has covenanted that it will not issue any additional
,- Bonds (except refunding bonds) to be supported by Special Taxes and IA No. I Special
:~' Taxes; and (iii) all Authodzed Facilities have been constructed and/or acquired.
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
pdvate residential use has been issued be increased by more than ten percent as a
consequence of delinquency or default by the ownor of any other Assessor's Parcel,
within IA No. I or IA 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
propedies within IA No. I or IA No. 2.
V. EXTRAORDINARY SPECIAL TAX
An Extraordinary Special Tax shall be levied in any Fiscal Year in which an
Extraordinary Special Tax Requirement has been established, and shall be levied in
addition to the Special Tax that was already levied as described under Secffi3n IV to
satisfy the Special Tax Requirement. The Extraordinary Special Tax shall be levied in a
manner consistent with the terms of the Appodionment of Special Tax in Section IV by
continuing to levy Special Taxes on Assessor's Parcels in IA No. 2 only, according to the
steps listed in Section IV, until the total Special Taxes levied within IA No. I and IA No. 2
satisfy both the Special Tax Requirement and the Extraordinary. Special Tax
Requirement. However, the Extraordinary Special Tax shall only be levied on Assessors
Parcels in IA No. 2, and shall not be levied on Assessor's Parcels in IA No. 1, the
Propodionata allocation of Special Taxes between IA No. I and IA No. 2 under lhe terms
of the Apportionment of the Special Tax shall not apply to the levy of the Extraordinary=
: _" Special Tax. ·
" V1. MANNER OF COLLECTION
Collection of the Special Tax and the Extraordinary Special Tax shall be by the County in
the same manner as ordinary ad valorera 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 vaiorem taxes; provided, however, that the Council may provide in the
Indenture or in the Resolution of Issuance 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.
Amended, June 13, 2001 C-25 City of Rancho Cucamonga
Ordinance No. 658
Page 31 of 45
VII. DISCHARGE OF SPECIAL TAX OBLIGATION
Property owners may prepay and permanently satisfy the Special Tax Obligation by a
cash setfiement with the City as permitted under Government Code Section 53344.
Prepayment is permitted only under the following conditions:
The following definition applies to this Section VII: -
"CFD Public Facilities Costs" means either $10.50~),000 in 2001 dollars, which shall
increase by the Construction Inflation Index on July 1, 2002, and on each July I -"
thereafter, or such lower number as (i) shall be determined by the CFD Administrator as
sufficient to acquire or construct the Authorized Facilities to be financed by IA No. I and
IA No. 2 under the authorized Mello-Roos financing program for CFD No. 2001-01, or (ii)
shall be determined by the Council concurrently with a covenant that it will not issue any
more Bonds (except refunding bonds) to be st~pported by Special Taxes and IA No. 1
Special Taxes.
"Construction Fund" means the fund (regardless of its name) pursuant to the
Indenture to hold funds, which are currently available for expenditure to acquire or
construct the Authorized Facilities.
"Construction Inflation Index" means the annual percentage change in the
En.qineerin~l News-Record Building Cost Index for the City of Los Angeles, measured as
of the calendar year, which ends in the previous Fiscal Year. In the event this index
ceases to be published, the Inflation Index shall be another index as determined by the
CFD Administrator that is reasonably comparable to the En.qineerinq News-Record
Building Cost index for the City of Los Angeles.
"Future Facilities Costs" means the CFD Public Facilities Costs minus (i) costs
previously paid from the Construction Fund to acquire or construct the Authorized
Facilities. (ii) monies currently on deposit in the Construction Fund, and (iii) monies
currently on deposit in an escrow or other earmarked fund that are expected to be
available to finance CFD Public Facilities Costs
"Outstanding Bonds" means all Previously Issued Bonds, which remain outstanding
as of the first interest and/or principal payment date following the current Fiscal Year.
"Previously Issued Bonds" means all Bonds that have been issued prior to the date of
prepayment.
1. Prepayment in Full
The Special Tax Obligation applicable to an Assessor's Parcel in IA No, 2 may be
prepaid and the obligation of the Assessor's Parcel to pay any Special Tax permanently
satisfied as described heroin, provided that a propayment 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 Parcol at the time of prepayment. An owner of an Assessors Parcel
Amended, June 13, 2001 C-26 City of Rancho Cucarnonga
Ordinance No. 658
Page 32 of 45
intending to prepay the Special Tax Obligation shall provide!the CFD Administrator with
written notice of intent to prepay. The CFD Administrator shall provide the owner with a
statement of the Prepayment Amount for such Assessor's Parcel within thidy (30) days
of the request and may charge a reasonable fee for providing this service. Repayment
must be made not lass than 60 days prior to any rederoption date for the Bonds to be
redeemed with the proceeds of such prepaid Special Taxes.
,- The Prepayment Amount (defined below) shall be calculated as summarized below
"' (capitalized terms asde~ned below):
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Prepayment Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
Total: equals Prepayment Amount
As of the proposed date of prepayment, the Prepayment Amount (defined below) shall
be calculated as follows:
Paragraph No.:
1, Confirm that no Special Tax delinquencies apply to such Assessor's Parcel.
2. For Assessor's Parcels of Developed Property, compute the Assigned Special
Tax and Backup Special Tax. For Assessor's Parcels of Final Mapped Property
or Undeveloped Property for which a building permit has been issued, compute
the Assigned Special Tax and Backup Special Tax for that Assessor's Parcel as
though it was already designated as Developed Property, based upon the
· .. building permit which has already been issued for that Assessor's Parcel. For
' - Assessor's Parcels of Undeveloped Property compute the Maximum Special Tax.
3. (a) Divide the Assigned Special Tax computed pursuant to paragraph 2 by the
' total estimated Assigned Special Taxes for IA No. I and IA No. 2 based on the
Developed Property Special Taxes and IA No. I Developed Property Special
Taxes which could be levied in the current Fiscal Year on all expected
development through build-out of IA No. 1 and IA No, 2 as determined by the
CFD Administrator, excluding any Assessor's Parcels for which the Special Tax
Obligation has been prepaid, and
(b) Divide the Backup Special Tax or Maximum Special Tax computed pursuant
to paragraph 2 by the total estimated Backup Special Taxes and IA No. 1 Backup
Special Taxes at build-out for IA No. I and IA No. 2, excluding any Assessor's
Parcels for which the Special Tax Obligation has been prepaid.
4. Multiply the larger quotient computed pursuant to paregraph 3(a) or 3(b) by the
Outstanding Bonds to compute the amount of Outstanding Bonds to be retired
and prepaid (the "Bond Redemption Amount").
Amended, June 13, 2001 C-27 City of Rancho Cucamonga
Ordinance No. 658 Page 33 of 45
5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the
applicable redemption premium (expressed as a percentage), if any, on the
Outstanding Bonds to be redeemed (the "Redemption Premium").
6. Compute the current Future Facilities Costs.
7. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the
amount determined pursuant to paragraph 6 to compute the amount of Future
Facilities Costs to be prepaid (the "Future Facilities Prepayment Amount").
8. Compute the amount needed to pay interest on the Bond Redemption Amount
from the first bond interest and/or principal payment date following the current ...
Fiscal Year until the earliest redemption date for the Outstanding Bonds.
9. Compute the minimum amount the CFD Administrator reasonably expects to
derive from the reinvestment of the Prepayment Amount less the Future Facilities
Amount and the Administrative Fees and Expenses from the date of prepayment
until the redemption date for the Outstanding Bonds to be redeemed with the
prepayment.
10. Take the amount computed pursuant to paragraph 8 and subtract the amount
computed pursuant to paragraph 10 (the "Defeacance Amount").
11. Vedfy the administrative fees and expenses of IA No. I and IA No. 2, including
the costs of computation of the prepayment. the costs to invest the prepayment
proceeds, the costs of redeeming Bonds, and the costs of recording any notices
to evidence the prepayment and the redemption (the "Prepayment Administrative
Fees and Expenses").
12. If reserve funds for the Outstanding Bonds, if any, are at or above 100% of the
reserve requirement (as defined in the Indenture) on the prepayment date, a
reserve fund credit shall be calculated as a reduction in the applicable reserve
fund for the Outstanding Bonds to be redeemed pursuant to the prepayment (the
"Reserve Fund Credit"). No Reserve Fund Credit shall be granted if reserve
funds are below 100% of the reserve requirement.
13 If any capitalized interest for the Outstanding Bonds will not have been expended
at the time of the first interest and/or pdncipal payment following the current
Fiscal Year, a capitalized interest credit shall be calculated by multiplying the
larger quotient computed pursuant to paragraph 3(a) or 3(b) by the expected
balance in the capitalized interest fund after such first interest and/or principal
payment (the "Capitalized Interest Credit").
14. The Special Tax Obligation is equal to the sum of the amounts computed
pursuant to paragraphs 4, 5, 7, 10, and 11, less the amounts computed pursuant
to paragraphs 12 and 13 (the "Prepayment Amouat").
15. From the Prepayment Amount, the sum of the amounts computed pursuant to
paragraphs 4, 5, 10, 12, and 13 shall be deposited into the appropriate fund as
established under the Indenture and be used to retire Outstanding Bonds or
make Debt Service payments. The amount computed pursuant to paragraph 7
Amended, June 13, 2001 C-28 City of Rancho Cucamonga
Ordinance No. 658
Page 34 of 45
shall be deposited into the Construction Fund. The~amount computed pursuant
..... to paragraph 11 shall be retained by CFD No. 2001-01.
':':° The Prepayment Amount may be sufficient to redeem an amount other than a
$5,000 increment of Bonds, In such cases, the increment above $5,000 or
· - integral multiple thereof will be retained in the appropriate fund established under
the Indenture to be used to redeem Bonds with the next prepayment of Bonds.
The CFD Administrator will confirm that all previously levied Special Taxes have
been paid in full. With respect to any Assessors Parcel that is prepaid in full.
once the CFD Administrator has confirmed that all previously levied Special
Taxes have been paid, 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 Assessors Parcel to pay the Special Tax shall cease.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed
unless the aggregate amount of Maximum Special Taxes and IA No. I Maximum
Special Taxes that may be levied on Taxable Property and IA No. I Taxable
Property, respectively, after the proposed prepayment is at least 1.1 times the
maximum annual Debt Service on all Outstanding Bonds.
2. Prepayment in Part
The Special Tax on an Assessor's Parcel of Developed Property, or an Assessor's
Parcel of Final Mapped Property or Undeveloped Property for which a building permit
',*" has been issued may be partially prepaid. The amount of the prepayment shall be
,--- calculated as in Section VII.l; except that a partial prepayment shall be calculated
'~ according to the following formula:
PP=PEXF.
These terms have the following meaning:
PP = the partial prepayment
PE = the Prepayment Amount calculated according to Section VII. 1
F = the percentage by which the owner of the Assessor's Parcel(s) is partially
prepaying the Special Tax.
The owner of any Assessor's Parcel who desires such prepayment shall notify the CFD
Administrator of (i) such owner's intent to partially prepay the Special Tax, (ii) the
percentage by which the Special Tax shall be prepaid, and (iii) the company_or.agency ' '
that will be acting as the escrow agent, if any. The CFD Administrator shall pro~id~ the
owner with a statement of the amount required for the padial prepayment of the Special
Tax for an Assessor's Parcel within thirty (30) days of the request and may charge a
reasonable fee for providing this service.
With respect to any Assessor's Parcel that is partially prepaid, the City shall (i) distribute
the funds remitted to it according to Section VII.l, and (ii) indicate in the records of CFD
No. 2001-01 that there has been a padial prepayment of the Special Tax and that a
· - Amended, June 13, 2001 C-29 City of Rancho Cucamonga
Ordinance No. 658
Page 35 of 45
portion of the Special Tax with respect to such Asses$or's Parcel, equal to the
outstanding percentage (1.00 - F) of the remaining Maximum Annual Special Tax, shall
continue to be levied on such Assessor's Parcel pursuant to Section IV.
VIII TERM OF "SPECIAL TAX"
The Special Tax shall be levied for a period not to exceed fifty years commencing with
Fiscal Year 2002-2003, 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 Bonds have been paid; and (ii) all facilities have
been acquired and all reimbursements to the devetoper have been paid pursuant to the
Construction.
IX. EXEMPTIONS
No Special Tax shall be levied on up 12.54 Acres of Property Owner Association
Property and Public Property. Tax-exempt status will be assigned by the CFD
Administrator in the chronological order in which property becomes Property Owner
Association Property or Public Property. However, should an Assessor's Parcel no
longer be classified as Property Owner Association Property or Public Property, its
status as a property exempt from the levy of Special Taxes will be revoked.
Property Owner Association Property or Public Property that is not exempt from Special
Taxes under this section shall be subject to the levy of the Special Tax and shall be
taxed as part of the fifth step in Section IV above, at up to 100% of the applicable
Maximum Special Tax for Taxable Property Owner Association Property or Taxable
Public Property.
Amended, June 13, 2001 C-30 City of Rancho Cucamonga
Ordinance No. 658 Page 36 of 45
CITY OF RANCHO CUCAMONGA
COMMUNITY FACILITIES DISTRICT NO. 2001-01
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
FOR IMPROVEMENT AREA NO. 3
A Special Tax shall be levied on all Taxable Property in Improvement Area No. 3 of the City of
Rancho Cucamonga Community Facilities District No. 2001-01 and collected each Fiscal Year
commencing in Fiscal Year 2002-2003 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 Taxable Property shall be taxed to the extent and in the manner herein provided.
V, DEFINITIONS
This Rate and Method of Apportionment employs terms defined below and terms defined ....
in the Rate and Method of Appodionment for Improvement Area No, 3 of the City of
Rancho Cucamonga Community Facilities Distdct No. 2001-01 (IA No. 3). The terms
hereinafter set forth have the following meanings:
"Acre or Acreage" means the land area of an Assessor's 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 recorded County parcel map. The square footage of an Assessor's Parcel is equal
to the Acreage of such parcel multiplied by 43,560.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being
Chapter 2.5 of Part 1 of Division 2 of Ti6e 5 of the Government Code of the State of
California.
"Administrative Fees" or "Administrative Expenses" means the following actual or
reasonably estimated costs directly related to the administration of IA No. 3: the costs of
computing the IA No. 3 Special Taxes; the costs of preparing the annual IA No. 3 '
Special Tax collection schedules (whether by the City or designee thereof or both); the
costs of collecting the IA No. 3 (whether by the City, the County or otherwise); the costs
of remitting the IA No. 3 Special Taxes to the Trustee; the costs of the Trustee (including
its legal counsel) in the discharge of the duties required of it under the Indenture; the
costs to the City, CFD No. 2001-01, or any designee thereof complying with arbitrage
rebate requirements; the costs to the City, CFD No. 2001-01, or any designee thereof
complying with disclosure requirements of the City or CFD No. 2001-01 associated with '-
applicable Federal and State securities laws and the Act; the costs associated with -
preparing IA No. 3 Special Tax disclosure statements and responding to public inquiries .....
regarding the IA No. 3 Special Taxes; the costs to the City, CFD No. 2001-01, or any
designee thereof related to an appeal of the IA No. 3 Special Tax; the costs associated
with the release of funds from an escrow account; and the City's annual administration
fees and third party expenses. Administrative Expenses shall also include amounts
estimated or advanced by the City or CFD No. 2001-01 for any other administrative
purposes of IA No. 3, including attomey's fees and other costs related to commencing
and pursuing any foreclosure of delinquent IA No. 3 Special Taxes,
Amended, June 13, 2001 C-31 City of Rancho Cucamonga
Ordinance No. 658
Page 37 of 45
"Assessor" means the Assessor of the County of San Bernardino.
"Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an
assigned Assessors parcel number.
"Authorized Facilities" means those improvemenls, as listed in the Resolution of
Formation.
"Bond Share" means the share of Bonds assigned to a Taxable Parcel as specified in
Section VI.
"Bonds" means any bonds or other indebtedness (as defined in the Act) of CFD No.
2001-01 for improvement Area No. 3, whether in one or more sedes, secured by the levy
of Special Taxes.
"CFD No. 2001-01" means the City of Rancho Cucarnonga Community Facilities District
No. 2001-01.
"CFD Administrator" means an official of the City, or designee thereof, responsible for
determining the Special Tax Requirement and' for levying and collecting the Special
Taxes.
..... CIty" means the City of Rancho Cucamonga, California.
..... Council" means the City Council of the City of Rancho Cucamonga acting for the CFD under the Act.
"County" means the County of San Bernardino, California.
"Debt Service" means for each Fiscal Year, the total amount of principal and interest
payable on any Bonds. notes or cedificates of parficipation of the CFD during the
calendar year commencing on January I of such Fiscal Year.
"Fiscal Year" means the period starting on July 1 and ending the following June 30.
"IA No. 3 Bonds" means any bonds or other debt (as defined in Section 53317(d) of the
Act), whether in one or more series, issued by CFD No. 2001-01 for IA No. 3 under the
Act.
"improvement Area No. 3" means improvement Area No. 3 of CFD No. 2001-01, as
identified on the boundary map for CFD No. 2001-01. - - - _
"Indenture" means the indenture, fiscal agent agreement, resolution or other instrument
pursuant to which IA No. 3 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 below, which may be levied in any Fiscal Year
_ on any Assessor's Parcel based on its Land Use classification.
Amended, June 13, 2001 C-32 City of Rancho Cucamonga
Ordinance No. 658
Page 38 of 45
"Maximum Special Tax Revenue" means the sum of the MaXimum Annual Special Tax
which may be levied on all of the Taxable Properties in the CFD.
"Original Parcel" means the Assessor Parcel's existing at the formation of the CFD, as
depicted on the Boundary Map as recorded with the County Recorder, County of
Riverside, State of California
"Outstanding Bonds" means all IA No. 3 Bonds, which are deemed to be outstanding
under the Indenture.
"Parcel" means any County of San Bernardino Assessor's Parcel that is within the
boundades of the CFD, based on the equalized tax rolls of the County of San Bernardino
as of January 1 in the prior Fiscal Year.
"Parcel's Allocated Share" means the Maximum Annual Special Tax for a Parcel
divided by the Maximum Annual Special Tax Revenue.
"Partial Prepayment" means a prepayment of a portion of the Special Tax Obligation
applicable to a Parcel of Taxable Property, as set forth in Section VI. ..
"Payoff Parcel" means any taxable Developed Parcel for which a prepayment of the
Special Tax Obligation is being calculated pursuant to Section VI ......
"Proportionately" or "Proportionate" means. for Developed Property and IA No. 3
Developed Properly, that the ratio of the actual Special Tax levy to the Assigned Special
Tax is equal for all Assessor's Parcels of Developed Property and IA No. 3 Developed
Property. For Undeveloped Property and IA No. 3 Undeveloped Property,
"Proportionately" means that the ratio of the actual Special Tax levy per Acre to the
Maximum Special Tax per Acre is equal for all Assassor's Parcels of Undeveloped
Property and IA No. 3 Undeveloped Property. The term "Proportionately" may similarly
be applied to other categories of Taxable Property as listed in Section IV below.
"Public Property" means any property within the boundaries of IA No. 3 that is
transferred to a public agency on or after the date of formation of CFD No. 2001-01 and
is used for rights-of-way or any other purpose and is owned by or dedicated to the
federal government, the State of California, the County, the City or any other public
agency; provided however that any properly owned by a public agency and leased to a
private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and
classified in accordance with its use.
"Redevelopment Agency" means the Redevelopment Agency of the City of Rancho
Cucamonga acting for the CFD under the Act.
"Reserve Fund Share" means the total Reserve Fund amount multiplied by the
Parcel's Allocated Share.
"Residential Property" means all Assessor's Parcels of Developed Property for which
a building permit has been issued for purposes of constructing one or more residential
dwelling units.
Amended, June 13, 2001 C-33 City of Rancho Cucamonga
Ordinance No. 658
Page 39 of 45
"Resolution of Formation" means the Resolution passed by the Council authorizing
the formation of CFD No. 2001-01.
"Resolution of Issuance" means the Resolution passed by the council authorizing the
issuance of bonds.
"RMA" means this Rate and Method of Apportionment.
"Special Tax" means any tax levied within the CFD pursuant to the Act and this Rate
and Method of Appodionment of Special Tax.
"Special Tax Collection Schedule" means the document prepared by the Finance
Director and sent to the County Auditor for use in collecting the Special Tax each Fiscal
Year.
"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 that amount required in any Fiscal Year to: (i) pay
.... Debt Service on all Outstanding Bonds; (ii) pay pedodic costs on the Outstanding Bonds,
~L~' including but not limited to, credit enhancement and rebate payments on the
,-- Outstanding Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to
~ establish or replenish any reserve funds for all Outstanding Bonds; (v) accumulate funds
to pay directly for acquisition or construction of Authodzed Facilities identified, and (vi)
pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate
for Special Taxes levied in the previous Fiscal Year; less (vii) a credit for funds available
to reduce the annual Special Tax levy, as determined by the CFD Administrator pursuant
to the Indenture.
"State" means the State of California.
"Successor Parcel" means a Parcel created by Subdivision, lot line adjustment, or
parcel map from an Original or Successor Parcel.
"Taxable Acreage" is the area within each Parcel as shown on the Assessor Parcel
Map The Taxable Acreage for each Zone is described in Section III, Table 1.
"Taxable Property" means all of the Assessors Parcels within the boundaries of IA No.
3, which are not exempt from the levy of the Special Tax pursuant to law or Section VIII
below.
"Taxable Public Property" means all Assessor's Parcels of Public Properly that are nol
exempt from the levy of the Special Tax pursuant to Section VIII below.
._, "Tax-Exempt Parcel" means, as of January I of each year. (i) any parcel owned by a
governmental entity, or irrevocably offered for dedication to a govemmental entity, (ii)
.~'_: any Parcel which constitutes public right-of-way or whic~ is encumbered by an
-- unmanned 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 San
Bernardino County Assessor. Notwithstanding the foregoing, .(i) a Taxable Parcel
acquired by a public entity after the adoption of the Resolution of Formation by means of
Amended, June 13, 2001 C-34 City of Rancho Cucamonga
Ordinance No. 658 Page 40 of 45
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. Tax-Exempt Parcels include the specific
parcels, or their successor parcels.
"Trustee" means the trustee or fiscal agent under the Indenture.
"Zone" means that area that is further described on the Boundary Map of CFD 2001-01.
VI. CLASSIFICATION OF PARCELS
Each Fiscal Year, all Taxable Property within each Zone of IA No. 3 shall be classified "
as Taxable or Non-Taxable 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 Sections Ill and IV below.
III. MAXIMUM SPECIAL TAX RATE
A. The Maximum Special Tax and Taxable Acreage for Taxable Properly and .~_:
Taxable Public Property for each Zone is shown in Table 1. ~..
TABLE 1
Zone Taxable Bond Maximum Tax
Acreage Share Per Acre
Zone 1 - Future RDA 55.00 91.70% $15,230.37
Zone 7 - Leggio South 42.74 8.30% $1,963.45
B. Assignment of Maximum Annual Special Tax to Successor Parcels.
The CFD Administrator shall assign the Maximum Annual Special Tax to each
Successor Parcel as follows:
1) When an,Original or Successor Parcel is subdivided, the CFD Administrator
shall classify the resulting Successor Parcels as Taxable Parcels or Tax- *-
Exempt parcels using the definitions in Section I.
2) If the Successor Parcel is a Taxable Parcel:
calculate the percentage of the taxable Successor Parcel's square
footage to the total square footage for all taxable Successor Parcels of
that Original or Successor Parcel; then,
multiply this percentage by the Maximum Annual Special Tax assigned to
the previous Original Parcel or Successor Parcel. The result of this
Amended, June 13, 2001 C-35 City of Rancho Cucamonga
..... Ordinance No. 658
Page 41 of 45
calculation is the Maximum Annual SpeCial Tax for the Taxable
Successor Parcel.
C, Taxable Parcels Acquired by a Public Agency
Taxable Parcels that are acquired by a public agency after the CFD is formed will
remain subject to the applicable Special Tax unless the Special Tax obligation is
satisfied pursuant to Section 53317.5 of the Government Code. An exception to
this may be made if the Public use planned for a Public Parcel within the CFD is
relocated to a Taxable Parcel and the previously Tax-Exempt Parcel of
comparable acreage becomes a Taxable Parcel. This trading of Parcels will be
permitted to the extent that there is no net loss in Maximum Special Tax. It is
anticipated that the City will acquire approximately 55 Acres that will be subject to
the Special Tax.
IV. 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 IA No. 3 Special Tax, until the
· - amount of Special Taxes and IA No. 3 Special Taxes 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 Taxable Property in
an amount equal to 100% of the applicable Maximum Special Tax; or
Second: If less monies are needed to satisfy the Special Tax Requirement after the first
step has been completed, the Special Tax shall be levied propodionately on each
taxable Parcel at less than 100% of the Maximum Special tax; provided that the Council
may levy an amount in excess of the Special Tax Requirement if all authorized Bonds
have not already been issued,
Furlher 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 IA No. 3, except for those Residential Propedies whose owners are' also
delinquent or in default on their Special Tax payments for one or more other properties
within IA No. 3.
VI. 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 vatorem taxes;
provided, however, that the Council may provide in the Indenture or in the Resolution of
Issuance 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.
Amended, June 13, 2001 C-36 City of Rancho Cucamonga
Ordinance No. 658
Page 42 of 45
VI. DISCHARGE OF SPECIAL TAX OBLIGATION
Property owners may prepay and permanently satisfy the Special Tax Obligation by a
cash settlement with the City as permitted under Government Code Section 53344.
Prepayment is permitted only under the following conditions:
The following definition applies to this Section VI:
"CFD Public Facilities Costs" means either $8,000,000 in 2001 dollars, which shall
increase by the Construction Inflation Index on July 1, 2002, and on each July 1
thereafter, or such lower number as (i) shall be determined by the CFD Administrator as
sufficient to acquire or construct the Authorized Facilities to be financed by IA No. 3
under the authorized Mello-Roos financing program for CFD No. 2001-01, or (ii) shall be
determined by the Council concurrently with a covenant that it will not issue any more IA
No. 3 Bonds (except refunding bonds) to be suppealed by Special Taxes and IA No. 3
Special Taxes.
"Construction Fund" means the fund (regardless of its name) established pursuant to
the Indenture to hold funds, which are currently available for expenditure to acquire or
construct the Authorized Facilities. ' '
"Construction Inflation Index" means the annual percentage change in the
En~ neednq News-Record Building Cost Index for the City of Los Angeles, measured as
of the calendar year, which ends in the previous Fiscal Year. In the event this index
ceases to be published, the Inflation Index shall be another index as determined by the
CFD Administrator that is reasonably comparable to the Enfiineerinq News-Record
Building Cost Index for the City of Los Angeles.
"Future Facilities Costs" means for each Zone the CFD Public Facilities Costs minus
(i) costs previously paid from the Construction Fund to acquire or construct the
Authorized Facilities, (ii) monies currently on deposit in the Construction Fund, and (iii)
monies currently on deposit in an escrow or other earmarked fund that are expected to
be available to finance CFD Public Facilities Costs.
"Outstanding Bonds" means all Previously Issued Bonds, which remain outstanding
as of the first interest and/or principal payment date following the current Fiscal Year.
Each Zone's Bond Share is shown as a percentage of the total Bonds in Table 1.
"Previously Issued Bonds" means all IA No. 3 Bonds that have been issued pdor to
the date of prepayment.
1. Prepayment in Full
The Special Tax Obligation applicable to an Assessor's Parcel in IA No. 3 may be
prepaid and the obligation of the Assessor's Parcel to pay any Special Tax permanently --.
satisfied as described herein. provided that a prepayment may be made with respect to ....
a padicular 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. The CFD Administrator shall provide the owner with a
statement of the prepayment amount for such Assessor's Parcel within thirty (30) days of
Amended, June 13, 2001 C-37 City of Ranche Cucamonga
Ordinance No. 658
Page 43 of 45
the request and may charge a reasonable fee for provd ng.this service. Prepayment
must be made not less than 60 days pdor to any redemption date for the IA No. 3 Bonds
to be redeemed with the proceeds of such prepaid Special Taxes.
The Prepayment Amount (defined below) shall be calculated as summarized below
(capitalized terms as defined below):
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Prepayment Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
.:~':~ less Capitalized Interest Credit
~.-- Total: equals Prepayment Amount
As of the proposed date of prepayment, the Prepayment Amount (defined below) shall
be calculated as follows:
Paragraph No.:
1. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel.
2. Determine the Maximum Special Tax for the Payoff Parcel based on the
- assignment of the Maximum Special tax described in Section III above.
3. Divide the Maximum Special Tax computed pumuant to paragraph 2 by the total
Maximum Special Taxes for the Zone in which the Payoff Parcel is located to
arrive at the Parcel's Allocated Share.
4. Determine the Bond Redemption Amount for the Payoff Parcel by multiplying the
Allocated Share from paragraph 3 by the total amount of Outstanding Bends
issued by the CFD applicable to the Zone in which the Payoff Parcel is located.
5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the
applicable redemption premium (expressed as a percentage), if any, on the
Outstanding Bonds to be redeemed (the "Redemption Premium").
. _ 6. Compute the current Future Facilities Costs.
:7_' 7. Multiply the Allocated Share by the amount determined pursuant to paragraph 6
to compute the amount of Future Facilities Costs to be prepaid (the "Future
Facilities Amount Prepayment").
8. Compute the amount needed to pay interest on the Bond Redemption Amount
from the first bond interest and/or pdncipal payment date following the current
Fiscal Year until the earliest redemption date for the Outstanding Bonds.
9. Compute the minimum amount the CFD Administrator reasonably expects to
_ dedve from the reinvestment of the Prepayment Amount less the Future Facilities
Amount and the Administrative Fees and Expenses from the date of prepayment
Amended, June 13, 2001 C-38 City of Rancho Cucamonga
Ordinance No. 658 Page 44 of 45
until the redemption date for the Outstanding Bonds. to be redeemed with the
prepayment.
10. Take the amount computed pursuant to paragraph 8 and subtract the amount
computed pursuant to paragraph 9 (the "Defeasance Amount").
11. Vedfy the administrative fees and expenses of IA No. 3, including the costs of
computation of the prepayment, the Payoff Parcel's proportionate share of the
costs of formation of the CFD if Bonds have not been sold, the costs to invest the
prepayment proceeds, the costs of redeeming IA No. 3 Bonds, and the costs of
recording any notices to evidence the prepayment and the redemption (the
"Prepayment Administrative Fees and Expenses").
12. If reserve funds for the Outstanding Bonds, if any, are at or above 100% of the
reserve requirement (as defined in the Indenture) on the prepayment date, a
reserve fund credit shall be calculated as a reduction in the applicable reserve
fund for the Outstanding Bonds to be redeemed pursuant to the prepayment (the
"Reserve Fund Credit"). No Reserve Fund Credit shall be granted if reserve
funds are below 100% of the reserve requirement.
13. If any capitalized interest for the Outstanding Bonds will not have been expended
at the time of the first interest and/or principal payment following the current
Fiscal Year, a capitalized interest credit shall be calculated by multiplying the
Allocated Share by the expected balance in the capitalized interest fund after
such first interest and/or principal payment (the "Capitalized Interest Credit").
14. The Special Tax Obligation is equal to the sum of the amounts computed
pursuant to paragraphs 4, 5, 7, 10, and 11, less the amounts computed pursuant '
to paragraphs 12 and 13 ("Prapayment Amount").
15. From the Prapayment Amount, the sum of the amounts computed pursuant to
paragraphs 4, 5, 10, 12, and 13 shall be deposited into the appropriate fund as
established under the Indenture and be used to retire Outstanding Bonds or
make Debt Service payments. The amount computed pursuant to paragraph 7
shall be deposited into the Construction Fund. The amount computed pursuant
to paragraph 11 shall be retained by CFD No. 2001-01.
The Prepayment Amount may be sufficient to redeem an amount other than a
$5,000 increment of IA No. 3 Bonds. In such cases, the increment above $5,000
or integral multiple thereof will be retained in the appropriate fund established
under the Indenture to be used to redeem IA No. 3 Bonds with the next
prepayment of IA No. 3 Bonds.
The CFD Administrator will confirm that all previously levied Special taxes have
been paid in full. With respect to any Assessors Parcel that is prepaid in full,
once the CFD Administrator has confirmed that all previously levied Special
taxes have been paid, 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 Assessors Parcel to pay the Special Tax shall cease.
Amended, June 13, 2001 C-39 City of Rancho Cucamonga
Ordinance No. 658
Page 45 of 45
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed
unless the aggregate amount of Maximum Special Taxes and IA No. 3 Maximum
Special Taxes that may be levied on Taxable Property and IA No.' 3 Taxable
Property, respectively, after the proposed prepayment is at least 1.1 times the
maximum annual Debt Service on all Outstanding Bonds,
' 2. Prepayment in Part
The Special Tax on an Assessor's Parcel of Developed Properly, or an
.-- Assessor's Parcel of Final Mapped Property or Undeveloped Prepedy for which a
.:::: building permit has been issued may be partially prepaid. The amount of the
--- prepayment shall be calculated as in Section VI.1; except that a partial
..:: prepayment shall be calculated according to the following formula:
PP=PExF.
These terms have the following meaning:
PP = the partial prepayment
PE = the Prepayment Amount calculated according to Section VI.1
- F = the percentage by which the owner of the Assessor's Parcel(s) is partially
prepaying the Special Tax.
The owner of any Assessor's Parcel who desires such prepayment shall notify
the CFD Administrator of (i) such owner's intent to padially prepay the Special
Tax, (ii) the percentage by which the Special Tax shall be prepaid, and (iii) the
company or agency that will be acting as the escrow agent, if any. The CFD
Administrator shall provide the owner with a statement of the amount required for
the partial prepayment of the Special Tax for an Assessor's Parcel within thirty
(30) days of the request and may charge a reasonable fee for providing this
service.
With respect to any Assessor's Parcel that is partially prepaid, the City shall (i)
distribute the funds remitted to it according to Sealion VI.1, and (ii) indicate in the
records of CFD No. 2001-O1 that there has been a padial prepayment of the
.... Special Tax and that a portion of the Special Tax with respect to such Assessors
".'~ Parcel, equal to the outstanding percentage (1.00 - F) of the remaining Maximum
.-. Annual Special Tax, shall continue to be levied on such Assessor's Parcel
" pursuant to Section IV.
VII. TERM OF "SPECIAL TAX"
The Special Tax shall be levied for a period not to exceed fifty years commencing with
Fiscal Year 2002-2003, 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 IA No. 3 Bonds have been paid; and (ii) all
facilities have been acquired and all reimbursements to the developer have been paid
pursuant to the Acquisition and Construction Agreement.
Amended, June 13, 2001 C-40 City of Rancho Cucamonga