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HomeMy WebLinkAbout744 - Ordinances ORDINANCE NO. 744 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, AMENDING ORDINANCE NO. 643 AND AUTHORIZING THE LEVY OF A SPECIAL TAX OF COMMUNITY FACILITIES DISTRICT NO. 2000-03 (RANCHO SUMMIT) PURSUANT TO AN AMENDED AND RESTATED RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX WHEREAS, the CITY COUNCIL of the CITY OF RANCHO CUCAMONGA, CALIFORNIA (the "City Council"), has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors authorizing the levy of separate special taxes within a community facilities district, all as authorized pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982", being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the "Act") This Community Facilities District is designated as COMMUNITY FACILITIES DISTRICT NO. 2000- 03 (RANCHO SUMMIT) (the "District"); and WHEREAS, the City Council, acting as the legislative body of the District, previously enacted Ordinance No. 643 to authorize the levy of special taxes therein pursuant to a rate and method of apportionment; and WHEREAS, the City Council has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors of the District authorizing the levy of special taxes therein pursuant to an amended and restated rate and method of apportionment thereof. The City Council of the City of Rancho Cucamonga, California, acting as the legislative body of Community Facilities District No. 2000-03 (Rancho Summit), does hereby ordain as follows: SECTION 1: This City Council does, by the passage of this ordinance, authorize the levy of special taxes on taxable properties located in the District pursuant to the Amended and Restated Rate and Method of Apportionment of Special Taxes as set forth in Exhibit "A" attached hereto and incorporated herein by this reference (the "Amended and Restated Rate and Method"). SECTION 2: This City Council, acting as the legislative body of the District, is hereby further authorized, by Resolution, to annually determine the special tax to be levied within the District for the then current tax year or future tax years; provided, however, the special tax to be levied therein shall not exceed the maximum special tax authorized to be levied pursuant to the Amended and Restated Rate and Method. Ordinance No. 744 Page 2 of 16 SECTION 3: The special taxes herein authorized to be levied within the District, to the extent, possible, shall be collected in the same manner as ad valorem property taxes and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency as applicable for ad valorem taxes; provided, however, the District may utilize a direct billing procedure for any special taxes that cannot be collected on the County tax roll or may, by resolution, elect to collect the special taxes at a different time or in a different manner if necessary to meet its financial obligations. SECTION 4: The special taxes authorized to be levied in the District shall be secured by the lien imposed pursuant to Sections 3114.5 and 3115.5 of the Streets and Highways Code of the State of California, which lien shall be a continuing lien and shall secure each levy of the special tax. The lien of the special tax shall continue in force and effect until the special tax obligation is prepaid, permanently satisfied and canceled in accordance with Section 53344 of the Government Code of the State of California or until the special tax ceases to be levied by the City Council in the manner provided in Section 53330.5 of said Government Code. SECTION 5: This Ordinance shall, upon becoming effective, amend and supercede any and all provisions of Ordinance No. 643 pertaining to the authorization to levy special taxes within the District. SECTION 6: This Ordinance shall be effective thirty (30) days after its adoption. Within fifteen (15) days after its adoption, the City Clerk shall cause this Ordinance to be published in a newspaper of general circulation in the City pursuant to the provisions of Government Code Section 36933. Please see the following page for formal adoption, certification and signatures Ordinance No. 744 Page 3 of 16 PASSED, APPROVED, AND ADOPTED this 6th day of July 2005. AYES: Alexander, Gutierrez, Michael, Spagnolo, Williams NOES: None ABSENT: None ABSTAINED: None William J. Aiexa~or ' ATTEST: ~l~ebra J. AtSam~, CMC, City Clerk I, DEBRA J. ADAMS, CITY CLERK of the City of Rancho Cucamonga, California, do hereby certify that the foregoing Ordinance was introduced at a Regular Meeting of the Council of the City of Rancho Cucamonga held on the 15th day of June 2005, and was passed at a Regular Meeting of the City Council of the City of Rancho Cucamonga held on the 6th day July 2005. Executed this 7th day of July 2005, at Rancho Cucamonga, California. I~e'bra-J. Ad~ City Clerk Ordinance No. 744 Page 4 of 16 EXHIBIT A AMENDED AND RESTATED RATE AND METHOD OF APPORTIONMENT FOR CITY OF RANCHO CUCAMONGA COMMUNITY FACILITIES DISTRICT NO. 2000-03 (RANCHO SUMMIT) A Special Tax hereinafter defined shall be levied on all Assessor's Parcels of Taxable Property in Community Facilities District No. 2000-03 of the City of Rancho Cucamonga ("CFD No. 2000- 03") and collected each Fiscal Year commencing in Fiscal Year 2005-06, in an amount determined by the City Council of the City of Rancho Cucamonga, through the application of this Amended and Restated Rate and Method of Apportionment as described below. All of the real property in CFD No. 2000-03, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS 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 Assessor's Parcel Map, or if the land area is not shown on an Assessor's Pamel 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, being Chapter 2.5, Part 1, Division 2 of Title 5 of the California Government Code. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2000-03: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the County or otherwise); the costs of remitting the 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. 2000-03 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2000-03 or any designee thereof of complying with disclosure requirements applicable to CFD No. 2000-03 and/or the City associated with applicable federal and state securities laws and of the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2000-03 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from any 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. 2000-03 for any other administrative purposes of CFD No. 2000-03, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. Ordinance No. 744 Page 5 of 16 "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned Assessor's Parcel number. "Assessor's Parcel Map" means an official map of the County Assessor of the County designating parcels by Assessor's Parcel number. "Assigned Special Tax A" means the Special Tax A for each Land Use Class of Developed Property as determined in accordance with Section C.1 .(b). below. "Backup Special Tax A" means the Special Tax A applicable to each Assessor's Parcel of Developed Property in each Zone, as determined in accordance with Section C.l.(d). below. "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. 2000-03 under the Act. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement for Facilities and the Special Tax Requirement for Services and providing for the levy and collection of the Special Taxes. "CFD No. 2000-03" means City of Rancho Cucamonga Community Facilities District No. 2000-03 (Rancho Summit). "City" means the City of Rancho Cucamonga. "Consumer Price Index" means, for each Fiscal Year, the Consumer Price Index published by the U.S. Bureau of Labor Statistics for "All Urban Consumers" in the Los Angeles - Anaheim - Riverside Area, measured as of the month of December in the calendar year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Consumer Price Index shall be another index as determined by the CFD Administrator that is reasonably comparable to the Consumer Price Index for the City of Los Angeles. "Council" means the City Council of the City, acting as the legislative body of CFD No. 2000-03. "County" means the County of San Bernardino. "Developed Property" means, for each Fiscal Year, all Taxable Property, exclusive of Taxable Public Property and Taxable Property Owner Association Property, for which the Final Subdivision was recorded on or prior to January 1 of the prior Fiscal Year and a building permit for new construction was issued after January 1, 2004 and prior to March I of the prior Fiscal Year. "Final Subdivision" means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots for which building permits may be issued without further subdivision. Ordinance No. 744 Page 6 of 16 "Fiscal Year" means the period starting July 1 and ending on the following June 30. "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. "Land Use Class" means any of the classes listed in Table I below. "Maximum Special Tax" means the Maximum Special Tax A and/or Maximum Special Tax B, as applicable. "Maximum Special Tax A" means the maximum Special Tax A determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor's Parcel. "Maximum Special Tax B" means the maximum Special Tax B determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor's Parcel. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a building permit permitting the construction of one or more non-residential units or facilities has been issued by the City. "Outstanding Bonds" means all Bonds which are deemed to be outstanding under the Indenture. "Property Owner Association Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 2000-03 that was owned by a property owner association, including any master or sub-association, as of January I of the prior Fiscal Year. "Proportionately" means, for Developed Property, that the ratio of the actual Special Tax A levy to the Assigned Special Tax A is approximately equal for all Assessor's Parcels of Developed Property and that the ratio of the actual Special Tax B levy to the Maximum Special Tax B is approximately equal for all Assessor's Parcels of Developed Property. For Undeveloped Property, "Proportionately" means that the ratio of the actual Special Tax A levy per Acre to the Maximum Special Tax A per Acre is equal for all Assessor's Parcels of Undeveloped Property. The term "Proportionately" may similarly be applied to other categories of Taxable Property as listed in Section D below. "Public Property" means property within the boundaries of CFD No. 2000-03 owned by, irrevocably offered or dedicated to, or for which an easement for purposes of public right-of-way has been granted to the federal government, the State of California, the County of San Bernardino, the City of Rancho Cucamonga, or any local government or other public agency, provided that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use. Ordinance No. 744 Page 7 of 16 "Residential Floor Area" means all of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Residential Floor Area for an Assessor's Parcel shall be made by reference to the building permit(s) issued for such Assessor's Parcel. "Residential Property" means all Assessor's Pamels of Developed Properly for which a building permit permitting the construction thereon of one or more residential dwelling units has been issued by the City. "Special Tax" means the Special Tax A and/or Special Tax B, as applicable. "Special Tax A" means the special tax to be levied in each Fiscal Year on each Assessor's Parcel of Taxable Property within CFD No. 2000-03 to fund the Special Tax Requirement for Facilities. "Special Tax B" means the special tax to be levied in each Fiscal Year on each Assessor's Parcel of Taxable Property within CFD No. 2000-03 to fund the Special Tax Requirement for Services. "Special Tax Requirement for Facilities" means that amount required in any Fiscal Year for CFD No. 2000-03 to: (i) pay debt service on all Outstanding Bonds due in the calendar year commencing in such Fiscal Year; (ii) pay periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds due in the calendar year commencing in such Fiscal Year; (iii) pay a proportionate share of Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds; (v) pay for reasonably anticipated Special Tax A delinquencies based on the delinquency rate for the Special Tax A levy in the previous Fiscal Year; less (vi) a credit for funds available to reduce the annual Special Tax A levy, as determined by the CFD Administrator pursuant to the Indenture. "Special Tax Requirement for Services" means that amount required in any Fiscal Year for CFD No. 2000-03 to: (i) pay the costs of park maintenance due in the calendar year commencing in such Fiscal Year as determined by the CFD Administrator; (ii) pay an amount necessary to fund an operating reserve for the costs of park maintenance; (iii) pay a proportionate share of Administrative Expenses; less (iv) a credit for funds available to reduce the annual Special Tax B levy, as determined by the CFD Administrator. "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No. 2000-03 which are not exempt from the Special Tax pursuant to law or Section E below. "Taxable Property Owner Association Property" means, for each Fiscal Year, all Assessor's Parcels of Property Owner Association Property that are not exempt from the Special Tax pursuant to Section E below. Ordinance No. 744 Page 8 of 16 "Taxable Public Property" means, for each Fiscal Year, all Assessor's Parcels of Public Property that are not exempt from the Special Tax pursuant to Section E below. "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, Taxable Public Property or Taxable Property Owner Association Property. "Zone" means Zone 1 or Zone 2, as applicable. "Zone 1" means Assessor Parcel number 0226-102-13 (as designated on the County Assessor's Roll for Fiscal Year 2004-2005) and the land area geographically identified as Parcel A in Tentative Tract Map No. 14759 approved by the Planning Commission of the City on November 10, 1999. Zone 1 may be subject to amendment from time-to- time or modification pursuant to a final map or precise site plan for such property at the sole discretion of the CFD Administrator provided that such amendment or modification will not reduce the amount of Maximum Special Tax A below the amount required to equal at least 1.1 times the maximum annual debt service on all Outstanding Bonds, plus the Administrative Expenses. "Zone 2" means the land area geographically identified as Parcel B-l, Parcel B-2, and Parcel C in Tentative Tract Map No. 14759 approved by the Planning Commission of the City on November 10, 1999. Zone 2 may be subject to amendment from time-to-time or modification pursuant to a final map or precise site plan for such property at the sole discretion of the CFD Administrator provided that such amendment or modification will not reduce the amount of Maximum Special Tax A below the amount required to equal at least 1.1 times the maximum annual debt service on all Outstanding Bonds, plus the Administrative Expenses. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, all Taxable Property within CFD No. 2000-03 shall be assigned to a Zone and further classified as Developed Property, Taxable Public Property, Taxable Property Owner Association Properly, or Undeveloped Property, and shall be subject to Special Taxes in accordance with this Amended and Restated Rate and Method of Apportionment determined pursuant to Sections C and D below. Residential Property shall be assigned to Land Use Classes 1 through 10 and Non-Residential Property shall be assigned to Land Use Class 11. The Maximum Special Tax for Residential Property shall be based on the Residential Floor Area of the dwelling unit(s) located on the Assessor's Parcel. The Maximum Special Tax for Non-Residential Property shall be based on the Acreage of the Assessor's Parcel. The Maximum Special Tax for any Assessor's Parcel of Developed Property containing more than one Land Use Class shall be determined pursuant to Section C below. Ordinance No. 744 Page 9 of 16 C. MAXIMUM SPECIAL TAX 1. Developed Property (a). Maximum Special Tax The Maximum Special Tax A 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 A or (ii) the amount derived by application of the Backup Special Tax A. The Maximum Special Tax B for each Land Use Class of Developed Property is shown below in Table 1. The Maximum Special Tax for each Assessor's Parcel classified as Developed Property shall be the Maximum Special Tax A plus the Maximum Special Tax B. (b). Assigned Special Tax A The Fiscal Year 2005-2006 Assigned Special Tax A for each Land Use Class is shown below in Table 1. TABLE 1 Assigned Special Tax A and Maximum Special Tax B for Developed Property in City of Rancho Cucamonga Community Facilities District No. 2000-03 (Rancho Summit) Fiscal Year 2005-2006 Land Use Residential Floor Assigned Special Maximum Special Class Description Area Tax A Tax B 1 Residential Property < 1,850 s.f. $1,707 per unit $945 per unit 2 Residential Property 1,850 - 2,049 S.f. $1,899 per unit $945 per unit 3 Residential Property 2,050 - 2,249 s.f. $2,027 per unit $945 per unit 4 Residential Property 2,250 - 2,449 s.f. $2,046 per unit $945 per unit 5 Residential Property 2,450 - 2,649 s.f. $2,061 per unit $945 per unit 6 Residential Property 2,650 - 2,849 s.f. $2,235 per unit $945 per unit 7 Residential Property 2,850 - 3,049 s.f. $2,462 per unit $945 per unit 8 Residential Property 3,050 - 3,249 s.f. $2,527 per unit $945 per unit 9 Residential Property 3,250 - 3,449 s.f. $2,677 per unit $945 per unit 10 Residential Property => 3,450 s.f. $2,696 per unit $945 per unit 11 Non-Residential Property NA $12,600 per Acre $4,683 per Acre Ordinance No. 744 Page 10 of 16 (c). Increase in the Assigned Special Tax A and Maximum Special Tax B The Fiscal Year 2005-2006 Assigned Special Tax A, identified in Table 1 above, shall not be subject to change and shall therefore remain the same in every Fiscal Year. On each July 1, commencing on July 1, 2006, the Maximum Special Tax B listed in Table 1 above shall be increased based on the percentage change in the Consumer Price Index, with a maximum annual increase of six percent (6%) and a minimum annual increase of two percent (2%) per Fiscal Year. (d). Backup Special Tax A The Fiscal Year 2005-2006 Backup Special Tax A for an Assessor's Parcel of Developed Property in Zone 1 shall equal $9,601 per Acre or portion thereof. The Fiscal Year 2005-2006 Backup Special Tax A for an Assessor's Parcel of Developed Property in Zone 2 shall equal $14,824 per Acre or portion thereof. The Backup Special Tax A applicable to Zone 1 or Zone 2 shall not be subject to change and shall therefore remain the same in every Fiscal Year. (e). Multiple Land Use Classes In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Class. The Maximum Special Tax levied on an Assessor's Parcel shall be the sum of the Maximum Special Taxes for all Land Use Classes located on that Assessor's Parcel. For an Assessor's Parcel that contains both Residential Property and Non- Residential Property, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The CFD Administrator's allocation to each type of property shall be final. 2. Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association Property (a). Maximum Special Tax A The Fiscal Year 2005-2006 Maximum Special Tax A for Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association Property in Zone 1 or Zone 2 shall be $14,824 per Acre or portion thereof. (b). Maximum Special Tax B The Fiscal Year 2005-2006 Maximum Special Tax B for Undeveloped Property in Zone 1 or Zone 2 shall be $4,683 per Acre or portion thereof. Taxable Public Property and Taxable Property Owner Association Property shall not be subject to a Maximum Special Tax B. Ordinance No. 744 Page 11 of 16 (c). Increase in the Maximum Special Tax The Fiscal Year 2005-2006 Maximum Specia~ Tax A for Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association Property shall not be subject to change and shall therefore remain the same in every Fiscal Year. On each July 1, commencing on July 1, 2006, the Maximum Special Tax B for Undeveloped Property identified in Section C.2.(b). above shall be increased based on the percentage change in the Consumer Price Index, with a maximum annual increase of six percent (6%) and a minimum annual increase of two percent (2%) per Fiscal Year. D, METHOD OF APPORTIONMENT OF THI= SP£CIAL TAX 1. Special Tax A Commencing with Fiscal Year 2005-2006 and for each following Fiscal Year, the Council shall determine the Special Tax Requirement for Facilities and shall levy the Special Tax A until the total Special Tax A levy equals the Special Tax Requirement for Facilities. The Special Tax A shall be levied each Fiscal Year as follows: First: The Special Tax A shall be levied on each Assessor's Parcel of Developed Property in an amount equal to 100% of the applicable Assigned Special Tax A; Second: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first step has been completed, the Special Tax A shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property at up to 100% of the Maximum Special Tax A for Undeveloped Property; Third: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first two steps have been completed, then the levy of the Special Tax A on each Assessor's Parcel of Developed Property in Zone 1 and Zone 2 whose Maximum Special Tax A is determined through the application of the Backup Special Tax A shall be increased in equal percentages from the Assigned Special Tax A up to the Maximum Special Tax A for each such Assessor's Parcel; Fourth: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first three steps have been completed, then the Special Tax A shall be levied Proportionately on each Assessor's Parcel of Taxable Public Property and Taxable Property Owner Association Property at up to the Maximum Special Tax A for Taxable Public Property and Taxable Property Owner Association Property. Notwithstanding the above the Council may, in any Fiscal Year, levy Proportionately less than 100% of the Assigned Special Tax A in step one (above), when (i) the Council is no longer required to levy the Special Tax A pursuant to steps two through four above in order to meet the Special Tax Requirement for Facilities; and (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 the Special Tax A. Ordinance No. 744 Page 12 of 16 Further notwithstanding the above, under no circumstances will the Special Tax A levied against any Assessor's Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent as a consequence of delinquency or default by the owner of any other Assessor's Parcel within CFD No. 2000-03. 2, Special Tax B Commencing with Fiscal Year 2005-2006 and for each following Fiscal Year, the Council shall determine the Special Tax Requirement for Services and shall levy the Special Tax B until the total Special Tax B levy equals the Special Tax Requirement for Services. The Special Tax B shall be levied each Fiscal Year as follows: First: The Special Tax B shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 100% of the applicable Maximum Special Tax B; Second: If additional monies are needed to satisfy the Special Tax Requirement for Services after the first step has been completed, the Special Tax B shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property, which as of January I of the previous Fiscal Year was located within a Final Subdivision, at up to 100% of the Maximum Special Tax B for Undeveloped Properly; Third: If additional monies are needed to satisfy the Special Tax Requirement for Services after the second step has been completed, the Specia~ Tax B shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property, which as of January 1 of the previous Fiscal Year was not located within a Final Subdivision, at up to 100% of the Maximum Specia~ Tax B for Undeveloped Property; E. EXEMPTIONS 1. Special Tax A No Special Tax A shall be levied on up to 21.88 Acres of Public Property and/or Property Owner Association Property in Zone 1 and up to 38.41 Acres of Public Property and/or Property Owner Association Property in Zone 2. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which property becomes Public Property or Property Owner Association Property. However, should an Assessor's Parcel no longer be classified as Public Property or Property Owner Association Property, its tax-exempt status will be revoked. Public Property or Property Owner Association Property that is not exempt from the Special Tax A under this section shall be subject to the ~evy of the Special Tax A and shall be taxed Proportionately as part of the fourth step in Section D.1 above, at up to 100% of the applicable Maximum Special Tax A for Taxable Public Property or Taxable Property Owner Association Property. 2. Special Tax B No Special Tax B shall be levied on Public Property and Property Owner Association Property in Zone 1 and/or Zone 2. Ordinance No. 744 Page 13 of 16 F. APPEALS AND INTERPRETATIONS Any landowner or resident who feels that the amount of the Special Tax levied on their Assessor's Parcel is in error may submit a written appeal to CFD No. 2000-03. The CFD Administrator shall review the appeal and if the CFD Administrator concurs, the amount of the Special Tax levied shall be appropriately modified. The Council may interpret this Amended and Restated Rate and Method of Apportionment for purposes of clarifying any ambiguity and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals. Any decision of the Council shall be final and binding as to all persons. G. MANNER OF COLLECTION The Special Tax A and Special Tax B will be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 2000-03 may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor's Parcels as permitted by the Act. H. PREPAYMENT OF SPECIAL TAX A The following additional definitions apply to this Section H: "Previously Issued Bonds" means, for any Fiscal Year, all Outstanding Bonds that are deemed to be outstanding under the Indenture after the first interest and/or principal payment date following the current Fiscal Year. Only an Assessor's Parcel of Developed Property, or Undeveloped Property for which a building permit has been issued, may be prepaid. The Special Tax A obligation applicable to an Assessor's Parcel in CFD No. 2000-03 may only be prepaid after all authorized Bonds have already been issued, or after the Council has covenanted that it will not issue any additional Bonds (except refunding bonds) to be supported by the Special Tax A levy under this Amended and Restated Rate and Method of Apportionment. The obligation of the Assessor's Parcel to pay any Special Tax A may be permanently satisfied as described herein, provided that a prepayment may be made with respect to a particular Assessor's Parcel only if there are no delinquent Special Taxes with respect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Special Tax A obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount for such Assessor's Parcel. The CFD Administrator may charge a reasonable fee for providing this service. Prepayment must be made not less than 45 days prior to the next occurring date that notice of redemption of Bonds from the proceeds of such prepayment may be given by the Trustee pursuant to the Indenture. The Special Tax B may not be prepaid. Ordinance No. 744 Page 14 of 16 The Special Tax A Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below): Bond Redemption Amount plus Redemption Premium plus Defeasance Amount plus Administrative Fees and Expenses less Reserve Fund Credit less Capitalized Interest Credit Total: equals Prepayment Amount As of the proposed date of prepayment, the Special Tax A Prepayment Amount (defined below) shall be calculated as follows: Para.qraph 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 A and Backup Special Tax A for the Assessor's Parcel to be prepaid. For Assessor's Parcels of Undeveloped Property for which building permits have already been issued, compute the Assigned Special Tax A and Backup Special Tax A for the Assessor's Parcel to be prepaid as though it were already designated as Developed Property, based upon the building permit which has been issued for that Assessor's Parcel. 3. (a) Divide the Assigned Special Tax A computed pursuant to paragraph 2 by the total estimated Assigned Special Tax A for CFD No. 2000-03 based on the Developed Property Special Tax A which could be charged in the current Fiscal Year on all expected development in CFD No. 2000-03, excluding any Assessor's Parcels for which the Special Tax A has been prepaid, and (b) Divide the Backup Special Tax A computed pursuant to paragraph 2 by the total estimated Backup Special Tax A which could be charged in the current Fiscal Year on all expected development in CFD No. 2000-03, excluding any Assessor's Parcels for which the Special Tax A has been prepaid. 4. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the Previously Issued Bonds to compute the amount of Previously Issued Bonds to be retired and prepaid (the "Bond Redemption Amount'). 5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium (e.g., the redemption price-100%), if any, on the Previously Issued Bonds to be redeemed (the "Redemption Premium"). 6. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date not covered by the current Fiscal Year Special Tax A levy until the earliest redemption date for the Previously Issued Bonds. Ordinance No. 744 Page 15 of 16 7. Determine the Special Tax A levied on the Assessor's Parcel in the current Fiscal Year which has not yet been paid. 8. Add the amounts computed pursuant to paragraphs 6 and 7. 9. Compute the net present value of the amount computed pursuant to paragraph 8, using as a discount rate the rate of return reasonably assumed for the conservative investment of these funds by the CFD Administrator (the "Defeasance Amount'). 10. The administrative fees and expenses of CFD No. 2000-03 are as calculated by the CFD Administrator and include the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the "Administrative Fees and Expenses"). 11. The reserve fund credit (the "Reserve Fund Credit') shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Previously Issued Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Previously Issued Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero. No Reserve Fund Credit shall be granted if the amount then on deposit in the reserve fund for the Previously Issued Bonds is below 100% of the reserve requirement (as defined in the Indenture). 12. If any capitalized interest for the Previously Issued Bonds will not have been expended as of the date immediately following the first bond interest and/or principal payment date following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the expected balance in the capitalized interest fund or account under the Indenture after such first interest and/or principal payment (the "Capitalized Interest Credit'). 13. The Special Tax A prepayment is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 9 and 10, less the amounts computed pursuant to paragraphs 11 and 12 (the "Prepayment Amount'). From the Prepayment Amount, the amounts computed pursuant to paragraphs 4, 5, 9, 11 and 12 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Previously Issued Bonds, as applicable, or make scheduled debt service payments. The amount computed pursuant to paragraph 10 shall be retained by CFD No. 2000-03. The Special Tax A Prepayment Amount may be insufficient to redeem a full $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 with the next prepayment of Bonds or to make scheduled debt service payments on such bonds. Ordinance No. 744 Page 16 of 16 Upon confirmation of the payment of the current Fiscal Year's Special Tax A levy as determined under paragraph 7 (above), the CFD Administrator shall remove the current Fiscal Year's Special Tax A levy for such Assessor's Parcel from the County tax rolls. With respect to any Assessor's Parcel for which the Special Tax A obligation is prepaid in full in accordance with this Section H, the Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of the Special Tax A and the release of the Special Tax A lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay the Special Tax A shall cease. Notwithstanding the foregoing, no Special Tax A prepayment shall be allowed unless, at the time of such proposed prepayment, the amount of Maximum Special Tax A that may be levied on Taxable Property within CFD No. 2000-03 (after excluding 21.88 Acres of Public Property and/or Property Owner Association Property in Zone 1 and 38.41 Acres of Public Property and/or Property Owner Association Property in Zone 2 as set forth in Section E) both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Previously Issued Bonds, plus the Administrative Expenses. I. TERM OF SPECIAL TAX The Special Tax A shall be levied for a period not to exceed fifty years commencing with Fiscal Year 2005-2006, provided however that the Special Tax A will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined that ail required interest and principal payments on the Bonds have been paid. The Special Tax B shall be levied as long as necessary to meet the Special Tax Requirement for Services.