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ORDINANCE NO. 769
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
RANCHO CUCAMONGA, CALIFORNIA, ACTING AS THE
LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT
NO. 2006-01 (VINTNER'S GROVE) AUTHORIZING THE LEVY
OF A SPECIAL TAX IN SUCH COMMUNITY FACILITIES
DISTRICT
WHEREAS, the CITY COUNCIL of the CITY OF RANCHO CUCAMONGA,
CALIFORNIA (the "City Council"), has initiated proceedings, held a public hearing, conducted
an election and received a favorable vote from the qualified electors authorizing the levy of
special taxes in a community facilities district, all as authorized pursuant to the terms and
provisions of the "Mello-Roos Community Facilities Act of 1982", being Chapter 2.5, Part 1,
Division 2, Title 5 of the Government Code of the State of California (the "Act"). This
Community Facilities District is designated as COMMUNITY FACILITIES DISTRICT NO. 2006-
01 (VINTNER'S GROVE) (the "District").
The City Council of the City of Rancho Cucamonga, California, acting as the
legislative body of Community Facilities District No. 2006-01 (Vintner's Grove), 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 Rate and Method of Apportionment of
Special Taxes as set forth in Exhibit "A" attached hereto and
incorporated herein by this reference (the "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 shall not exceed the maximum special tax authorized to
be levied pursuant to the Rate and Method.
SECTION 3: The special taxes herein authorized to be levied, 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.
Ordinance No. 769
Page 2 of 19
SECTION 4: The special taxes authorized to be levied shall be secured by the
lien imposed pursuant to Sections 3114.5 and 3115.5 of the
Streets and Highways Code of the State of California, which lien
shall be a continuing lien and shall secure each levy of the special
tax. The lien of the special tax shall continue in force and effect
until the special tax obligation is prepaid, permanently satisfied
and canceled in accordance with Section 53344 of the
Government Code of the State of California or until the special tax
ceases to be levied by the City Council in the manner provided in
Section 53330.5 of said Government Code.
SECTION 5: This Ordinance shall be effective thirty (30) days after its adoption.
Within fifteen (15) days after its adoption, the City Clerk shall
cause this Ordinance to be published in a newspaper of general
circulation in the City pursuant to the provisions of Government
Code Section 36933.
Please see the following page
for formal adoption, certification and signatures
Ordinance No. 769
Page 3 of 19
PASSED, APPROVED, AND ADOPTED this 1" day of November 2006.
AYES: Alexander, Gutierrez, Spagnolo, Williams
NOES: None
ABSENT: Michael
ABSTAINED: None
ATTEST:
~
, 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 18'h day of October 2006, and was
passed at a Regular Meeting of the City Council of the City of Rancho Cucamonga held on the
1" day November 2006.
Executed this 2,d day of November 2006, at Rancho Cucamonga, California.
, CMC, City Clerk
EXHIBIT A
RATE AND METHOD OF APPORTIONMENT FOR
CITY OF RANCHO CUCAMONGA
COMMUNITY FACILITIES DISTRICT NO. 2006-01,
(VINTNER'S GROVE)
Ordinance No. 769
Page 4 of 19
Ordinance No. 769
Page 5 of 19
RATE AND METHOD OF APPORTIONMENT
FOR CITY OF RANCHO CUCAMONGA
COMMUNITY FACILITIES DISTRICT NO. 2006-01
(VINTNER'S GROVE)
A Special Tax hereinafter defined shall be levied on all Assessor's Parcels of Taxable Property in
City of Rancho Cucamonga Community Facilities District No. 2006-01 (Vintner's Grove) ("CFD
No. 2006-01") and collected each Fiscal Year commencing in Fiscal Year 2006-07, in an amount
determined through the application of this Rate and Method of Apportionment as described below.
All of the real property in CFD No. 2006-01, 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 ifthe land area is not shown on an Assessor's Parcel Map, the land
area shown on the applicable final map, parcel map, condominium plan, or other recorded
document creating or describing such land area.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter
2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means the following actual or reasonably estimated costs
directly related to the administration of CFD No. 2006-0 I: 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 Fiscal Agent; the costs
ofthe Fiscal Agent (including its legal counsel) in the discharge of the duties required of it
under the Fiscal Agent Agreement; the costs to the City, CFD No. 2006-0 I or any designee
thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No.
2006-01 or any designee thereof of complying with disclosure requirements applicable to
CFD No. 2006-01 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.
2006-0 I 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. 2006-0 I for any other administrative purposes ofCFD No.
2006-0 I, including attorney's fees and other costs related to commencing and pursuing to
completion any foreclosure of delinquent Special Taxes.
"Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an
assigned Assessor's parcel number.
City of Rancho Cucamonga (Vintner's Grove)
CFD No. 2006-01
August 3, 2006
Page 1
Ordinance No. 769
Page 6 of 19
"Assessor's Parcel Map" means an official map of the County Assessor of the County
designating parcels by Assessor's parcel number.
"Authorized Facilities" means those improvements eligible to be financed by CFD No.
2006-01 under the Act and authorized to be financed pursuant to the Resolution of
Formation.
"CFD Administrator" means an official of the City, or designee thereof, responsible for
determining the Special Tax Requirement and providing for the levy and collection of the
Special Taxes.
"CFD No. 2006-01" means City of Rancho Cucamonga Community Facilities District No.
2006-01 (Vintner's Grove).
"CFD No. 2006-01 Bonds" means any bonds or other debt (as defined in Section 53317(d)
of the Act), whether in one or more series, issued by or on behalf ofCFD No. 2006-01 under
the Act.
"City" means the City of Rancho Cucamonga.
"Council" means the City Council of the City of Rancho Cucamonga, acting as the
legislative body ofCFD No. 2006-01.
"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 a
building permit for new.construction was issued after January 1, 2006 and on or before
March 1 of the Fiscal Year preceding the Fiscal Year for which the Special Taxes are being
levied, provided that a Final Subdivision for such Assessor's Parcel was recorded on or
before January I of the Fiscal Year preceding the Fiscal Year for which the Special Taxes
are being levied.
"Final Subdivision" means a subdivision of property by recordation of a (i) final map, or
portion thereof, approved by the City pursuant to the Subdivision Map Act (California
Government Code Section 64410 et seq.), (ii) lot line adjustment approved by the City, or
(iii) condominium plan pursuant to California Civil Code 1352 that creates individual lots for
which building permits may be issued without further subdivision.
"Fiscal Ageut" means the trustee or fiscal agent under the Fiscal Agent Agreement.
"Fiscal Agent Agreement" means the fiscal agent agreement, bond indenture, resolution or
other instrument pursuant to which CFD No. 2006-01 Bonds are issued, as modified,
amended and/or supplemented from time to time.
"Fiscal Year" means the period starting July I and ending on the following June 30.
City of Rancho Cucamonga (Vintner's Grove)
CFD No. 2006-01
August 3, 2006
Page 2
Ordinance No. 769
Page 7 of 19
"Land Use Class" means any of the classes listed in Tab]e ] below.
"Maximum Special Tax" means the maximum Special Tax, determined in accordance with
Section C below that can be levied in any Fisca] Year on any Assessor's Parcel ofTaxab]e
Property.
"Non-Residential Property" means all Assessor's Parcels ofDeve]oped Property for which
a building permit has been issued by the City for the purpose of constructing one or more
non-residential facilities, and which is not otherwise Residentia] Property.
"Outstanding Bonds" means all CFD No. 2006-0] Bonds which are deemed to be
outstanding under the Fisca] Agent Agreement.
"Property Owner Association Property" means, for each Fisca] Year, any property within
the boundaries of CFD No. 2006-0] that was owned by a property owner association,
including any master or sub-association, as of January I of the prior Fisca] Year.
"Proportionately" means, for Deve]oped Property, that the ratio ofthe actual Special Tax
levy to the Maximum Special Tax is equal for all Assessor's Parcels ofDeve]oped Property.
For Undeveloped Property, "Proportionate]y" means that the ratio ofthe actual Special Tax
levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor's Parcels of
Undeveloped Property. The term "Proportionate]y" shall be simi]arly applied to other
categories of Taxab]e Property as listed in Section E below.
"Public Property" means property within the boundaries ofCFD No. 2006-0] 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 otherpub]ic agency,
provided that any property owned by a public agency and leased by such 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.
"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 F]oor Area for an
Assessor's Parcel shall be made by reference to the building permit(s) issued for such
Assessor's Parcel. Such determination shall be final following the issuance of a certificate of
occupancy for the residential dwelling unit located on such Assessor's Parcel.
"Residential Property" means all Assessor's Parcels of Deve]oped Property for which a
building permit has been issued by the City for the purpose of constructing one or more
residential dwelling units.
"Resolution of Formation" means the resolution of formation adopted pursuant to
Government Code Section 53325.] for CFD No. 2006-0].
City of Rancho Cucamonga (Vintner's Grove)
CFD No. 1006-01
August 3, 1006
Page 3
Ordinance No. 769
Page 8 of 19
"Single Family Attached Property" means all Assessor's Parcels of Residential Property
for which building permits have been issued by the City for the purpose of constructing
attached residential units.
"Single Family Detached Property" means all Assessor's Parcels of Residential Property
for which building permits have been issued by the City for the purpose of constructing
detached residential units.
"Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor's
Parcel of Taxable Property within CFD No. 2006-0 I to fund the Special Tax Requirement.
"Special Tax Buydown" means a mandatory bond principal buydown payment made by a
property owner to reduce the amount of Outstanding Bonds to compensate for a loss of
Special Tax revenues resulting from the construction of fewer residential dwelling units,
smaller residential dwelling units, or a modified amount of non-residential Acreage, as
determined in accordance with Section D below.
"Special Tax Requirement" means that amount required in any Fiscal Year for CFD No.
2006-01 to: (i) pay debt service on all Outstanding Bonds; (ii) pay periodic costs on the CFD
No. 2006-01 Bonds, including but not limited to, credit enhancement and rebate payments on
the CFD No. 2006-01 Bonds due in the calendar year commencing in such Fiscal Year; (iii)
pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any
reserve funds for all Outstanding Bonds; (v) pay directly for acquisition or construction of
Authorized Facilities to the extent that the inclusion of such amount does not increase the
Special Tax levy on Undeveloped Property; (vi) pay for reasonably anticipated Special Tax
delinquencies based on the delinquency rate for the Special Tax levy 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 Fiscal Agent Agreement.
"State" means the State ofCalifomia.
"Taxable Property" means all of the Assessor's Parcels within the boundaries ofCFD No.
2006-0] which are not exempt from the Special Tax pursuant to law or Section F below.
"Taxable Property Owner Association Property" means all Assessor's Parcels of
Property Owner Association Property that are not exempt from the levy ofthe Special Tax
pursuant to the provisions of Section F below.
"Taxable Public Property" means all Assessor's Parcels of Public Property that are not
exempt from the levy of the Special Tax pursuant to the provisions of Section F below.
"U ndeveloped Property" means, for each Fisca] Year, all Taxable Property not classified
as Developed Property, Taxable Public Property or Taxable Property Owner Association
Property.
City of Rancho Cucamonga (Vintner's Grove)
CFD No. 2006-01
August 3, 2006
Page"
Ordinance No. 769
Page 9 of 19
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, all Taxable Property within CFD No. 2006-01 shall be classified as
Developed Property, Taxable Public Property, Taxable Property Owner Association
Property, or Undeveloped Property, and shall be subject to Special Taxes in accordance with
this Rate and Method of Apportionment determined pursuant to Sections C and E below.
Residential Property shall be assigned to Land Use Classes I through 8, as listed in Table 1
below, and Non-Residential Property shall be assigned to Land Use Class 9.
The Maximum Special Tax for each Assessor's Parcel of Residential Property shall be based
on the Residential Floor Area ofthe dwelling unit(s) located on such Assessor's Parcel. The
Maximum Special Tax for each Assessor's Parcel of Non-Residential Property shall be
based on the Acreage of such Assessor's Parcel. The Maximum Special Tax for any
Assessor's Parcel of Developed Property containing more than one Land Use Class shall be
determined pursuant to Section C below.
C. MAXIMUM SPECIAL TAX
1. Developed Property
(a) Maximum Special Tax
The Maximum Special Tax for each Assessor's Parcel classified as
Developed Property is shown below in Table 1.
TABLE 1
Maximum Special Tax for Developed Property in
Community Facilities District No. 2006-01
Land Use Residential Floor Maximum
Class Description Area Special Tax
1 Single Family Detached Property More than 2,900 SF $3,687 per unit
2 Single Family Detached Property 2,601 - 2,900 SF $3,379 per unit
3 Single Family Detached Property 2,30 I - 2,600 SF $3,244 per unit
4 Single Family Detached Property Less than 2,30 I SF $3,109 per unit
5 Single Family Attached Property More than 1,850 SF $2,774 per unit
6 Single Family Attached Property 1,601 - 1,850 SF $2,678 per unit
7 Single Family Attached Property 1,351 - 1,600 SF $2,50 I per unit
8 Single Family Attached Property Less than 1,351 SF $2,324 per unit
9 Non-Residential Property NA $49,234 per Acre
City of Rancho Cucamonga (Vintner's Grove)
CFD No. 2006-01
August 3, 2006
Page 5
Ordinance No. 769
Page 10 of 19
(b) Multiple Land Use Classes
In some instances an Assessor's Parcel of Developed Property may contain
more than one Land Use Class. The Maximum Special Tax levied on such an
Assessor's Parcel shall be the sum of the Maximum Special Taxes for all
Land Use Classes located on that Assessor's Parcel. For an Assessor's Parcel
that contains both Residential Property and Non-Residential Property, the
Acreage of such Assessor's Parcel shall be allocated to each type of property
based on the amount of Acreage, or equivalent entitlement, designated for
each land use as determined by reference to the site plan approved by the
City for such Assessor's Parcel. The CFD Administrator's allocation to each
type of property shall be final.
2. Undeveloped Property, Taxable Public Property, and Taxable Property Owner
Association Property
(a) Maximum Special Tax
The Maximum Special Tax for Undeveloped Property, Taxable Public
Property, and Taxable Property Owner Association Property shall be $54,668
per Acre.
D. SPECIAL TAX BUYDOWN
All of the requirements of this Section D, which describes the need for a Special Tax
Buydown that may result from a change in development as determined pursuant to this
Section D, shall only apply after the issuance of the first series of CFD No. 2006-01 Bonds.
Prior to the issuance of the first series ofCFD No. 2006-01 Bonds, the terms ofthe Special
Tax Buydown shall not apply.
The following additional definitions apply to this Section D:
"Certificate of Satisfaction of Special Tax Buydown" means a certificate from the CFD
Administrator stating that the property described in such certificate has met the Special Tax
Buydown Requirement for such property as calculated under this Section D.
"Letter of Compliance" means a letter from the CFD Administrator allowing the issuance
of building permits based on the prior submittal of a request for Letter of Compliance by a
property owner.
"Special Tax Buydown Requirement" means the total amount of Special Tax Buydown
necessary to be prepaid in order to permit the issuance of building permits listed in a request
for Letter of Compliance, as calculated under this Section D.
"Update Property" means an Assessor's Parcel of Undeveloped Property for which a
building permit has been issued. For purposes of all calculations in this Section D, Update
Property shall be taxed as if it were already Developed Property during the current Fiscal
City of Rancho Cucamollga (Vintner's Grove)
CFD No. 2006-01
August 3, 2006
Page 6
. Ordinance No. 769
Page 11 of 19
Year.
1. Request for Letter of Compliance
After the issuance of the first series ofCFO No. 2006-0 I Bonds, a property owner shall, as a
precondition to the issuance of a building permit for construction of any residential and/or
non-residential development for a specific Assessor's Parcel or lot, submit a Letter of
Compliance for the construction of the development on such Assessor's Parcel or lot. Ifa
Letter of Compliance has not yet been issued, the property owner must first request a Letter
of Compliance from the CFO Administrator. The request from the property owner shall
contain a list of all building permits for which the property owner is requesting a Letter of
Compliance, which may exceed the number of building permit issuances being applied for at
that time. The property owner shall also submit the Assessor's Parcels or tract and lot
numbers on which the construction is to take place, and the Residential Floor Area (for each
residential dwelling unit) or the Acreage (for each non-residential parcel) associated with
each prospective building permit.
2. Issuance of Letter of Compliance
Upon the receipt ofa request for a Letter of Compliance, the CFO Administrator shall assign
each building permit identified in such request to Land Use Classes I through 9 as listed in
Table 2 below based on the type of use and, if applicable, the Residential Floor Area
identified for each such building permit. If the CFO Administrator determines (i) that the
number of building permits requested for each Land Use Class, plus those building permits
previously issued for each Land Use Class, will not cause the total number ofresidential
dwelling units or non-residential Acreage within any such Land Use Class to exceed the
number of residential dwelling units or Acreage for such Land Use Class identified in Table
2 below, and (ii) that the total number of residential dwelling units anticipated to be
constructed pursuant to the current development plan for CFD No. 2006-0 I shall not be less
than 156 and the amount of non-residential Acreage will not be more than 0.0 Acres, then a
Letter of Compliance shall be submitted to the City and/or property owner by the CFD
Administrator approving the issuance of the requested building permits for the subject
property, and such subject property shall no longer be subject to the terms ofthe Special Tax
Buydown. This Letter of Compliance shall be submitted to the City and/or property owner
by the CFD Administrator within ten days of the submittal of the request for Letter of
Compliance by the property owner. However, should (i) the building permits requested, plus
those previously issued, cause the total number of residential dwelling units or non-
residential Acreage within any such Land Use Class to exceed the number of residential
dwelling units or non-residential Acreage for such Land Use Class identified in Table 2
below, or (ii) the CFD Administrator determine that changes in the development plan may
cause a decrease in the number of residential dwelling units within CFD No. 2006-01 to
below 156 residential dwelling units or an increase in the amount of non-residential Acreage
to above 0.0 Acres, then a Letter of Compliance will not be issued and the CFD
Administrator will be directed to determine if a Special Tax Buydown shall be required. The
number of residential dwelling units and non-residential Acreage, as listed in Table 2 below,
may be updated by the CFD Administrator prior to the issuance ofthe first series of CFD No.
2006-0 I Bonds.
City of Rancho Cucamonga (Vintner's Grove)
CFD No. 2006-01
August 3, 2006
Page 7
Ordinance No. 769
Page 12 of 19
TABLE 2
Expected Residential Dwelling Units per Land Use Class and Non-Residential Acreage
Community Facilities District No. 2006-01
Land Use Number of
Class Description Residential Floor Area Units/Acres
I Single Family Detached Property More than 2,900 SF 22 units
2 Single Family Detached Property 2,60 I - 2,900 SF 28 units
3 Single Family Detached Property 2,301 - 2,600 SF o units
4 Single Family Detached Property Less than 2,30 I SF 28 units
5 Single Family Attached Property More than 1,850 SF 26 units
6 Single Family Attached Property 1,601 - 1,850 SF 26 units
7 Single Family Attached Property 1,351 - 1,600 SF o units
8 Single Family Attached Property Less than 1,351 SF 26 units
9 Non-Residential Property NA 0.00 Acres
3. Calculation of Special Tax Buydown
If a Special Tax Buydown calculation is required as determined by the CFD Administrator
pursuant to paragraph 2 above, the CFD Administrator shall review the current development
plan for CFD No. 2006-01 in consultation with the current property owners for all remaining
Undeveloped Property in CFD No. 2006-0 I, and shall prepare an updated version of Table 2
identifying the revised number of residential dwelling units or non-residential Acreage
anticipated within each Land Use Class. The CFD Administrator shall not be responsible for
any delays in preparing the updated Table 2 that results from a refusal on the part of one or
more current property owners of Undeveloped Property to provide information on their
future development.
The CFD Administrator shall then review the updated Table 2 and determine the Special Tax
Buydown Requirement, if any, to be applied to the property identified in the request for
Letter of Compliance to assure the CFD's ability to levy special taxes equal to 110% debt
service coverage on the Outstanding Bonds, plus Administrative Expenses. The calculations
shall be undertaken by the CFD Administrator, based on the data in the updated Table 2, as
follows:
Step I. Compute the sum ofthe Maximum Special Tax authorized to be levied on all
Developed Property and Update Property within CFD No. 2006-01, plus the
sum of the Maximum Special Tax authorized to be levied on all future
development as identified in the current development plan as determined by
the CFD Administrator in consultation with the property owner(s).
City of Rancho Cucamonga (Vintner's Grove)
CFD No. 1006-01
August 3, 1006
Page 8
Ordinance No. 769
Page 13 of 19
Step 2. Determine the amount of Special Tax required to provide 110% debt service
coverage on the Outstanding Bonds, plus any other payments included in the
Special Tax Requirement.
Step 3. Ifthe total sum computed pursuant to step I is greater than or equal to the
amount computed pursuant to step 2, then no Special Tax Buydown will be
required and a Letter of Compliance shall immediately be issued by the CFD
Administrator for all ofthe building permits currently being requested. If the .
total sum computed pursuant to step 1 is less than the amount computed
pursuant to step 2, then continue to step 4.
Step 4. Determine the Maximum Special Tax shortfall by subtracting the total sum
computed pursuant to step 1 from the amount computed pursuant to step 2.
Divide this Maximum Special Tax shortfall by the amount computed
pursuant to step 2.
Step 5. The Special Tax Buydown Requirement shall be calculated using the
prepayment formula described in Section I, with the following exceptions: (i)
skip Paragraphs I, 2 and 3, and begin with Paragraph 4; (ii) the Bond
Redemption Amount in Paragraph 4 of the prepayment formula described in
Section I shall equal the product ofthe quotient computed pursuant to step 4
above times the Previously Issued Bonds, as defined in Section I; (iii) the
Capitalized Interest Credit described in Paragraph 12 of Section I shall be $0;
and (iv) any payments of the Special Tax Buydown (less Administrative Fees
and Expenses) shall be disbursed pursuant to the Fiscal Agent Agreement.
The Special Tax Buydown computed under step 5 shall be billed directly to the property
owner of each Assessor's Parcel identified in the request for Letter of Compliance and shall
be due within 30 days of the billing date. If the Special Tax Buydown is not paid within 45
days of the billing date, a delinquent penalty of I 0 percent shall be added to the Special Tax
Buydown. Upon receipt of the Special Tax Buydown payment, the CFD Administrator shall
issue a Letter of Compliance and a Certificate of Satisfaction of Special Tax Buydown for
the subject property, and such subject property shall no longer be subject to the terms ofthe
Special Tax Buydown.
4. Costs and Expenses Related to Implementation of Special Tax Buydown
The property owner of each Assessor's Parcel identified in the request for Letter of
Compliance shall pay all costs of the CFD Administrator or other consultants required to
review the application for building permits, calculate the Special Tax Buydown, issue Letters
of Compliance or any other actions required under Section D. Such payments shall be due
30 days after receipt of invoice by such property owner. A deposit may be required by the
CFD Administrator prior to undertaking work related to the Special Tax Buydown.
City of Rancho Cucamonga (Vintner's Grove)
CFD No. 2006-01
August 3, 2006
Page 9
Ordinance No. 769
Page 14 of 19
E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2006-07 and for each following Fiscal Year, the Council shall
determine the Special Tax Requirement and shall levy the Special Tax until the total Special
Tax levy equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal
Year as follows:
First: The Special Tax shall be levied on each Assessor's Parcel of Developed Property in an
amount equal to 100% of the applicable Maximum Special Tax;
Second: If additional monies are needed to satisfy the Special Tax Requirement after the
first step has been completed, the Special Tax shall be levied Proportionately on each
Assessor's Parcel of Undeveloped Property at up to 100% ofthe Maximum Special Tax for
Undeveloped Property;
Third: If additional monies are needed to satisfy the Special Tax Requirement after the first
two steps have been completed, then the Special Tax shall be levied Proportionately on each
Assessor's Parcel of Taxable Public Property and Taxable Property Owner Association
Property at up to the Maximum Special Tax for Taxable Public Property and Taxable
Property Owner Association Property;
Notwithstanding the above the Council may, in any Fiscal Year, levy Proportionately less
than 100% ofthe Maximum Special Tax in step one (above), when (i) the Council is no
longer required to levy the Special Tax pursuant to steps two and three above in order to
meet the Special Tax Requirement; and (ii) all authorized CFD No. 2006-01 Bonds have
already been issued or the Council has covenanted that it will not issue any additional CFD
No. 2006-01 Bonds (except refunding bonds) to be supported by the Special Tax.
Further notwithstanding the above, under no circumstances will the Special Tax levied
against any Assessor's Parcel of Residential Property for which an occupancy permit for
private residential use has been issued be increased by more than ten percent as a
consequence of delinquency or default by the owner of any other Assessor's Parcel within
CFD No. 2006-01.
F. EXEMPTIONS
No Special Tax shall be levied on up to 11.0 Acres of Public Property and/or Property
Owner Association Property. Tax-exempt status will be assigned by the CFD Administrator
in the chronological order in which property becomes Public Property or Property Owner
Association Property. However, should an Assessor's Parcel no longer be classified as
Public Property or Property Owner Association Property, its tax-exempt status will be
revoked.
Public Property or Property Owner Association Property that is not exempt from the Special
Tax under this section shall be subject to the levy of the Special Tax and shall be taxed
Proportionately as part of the third step in Section E above, at up to 100% of the applicable
City of Rancho Cucamonga (Vintner's Grove)
CFD No. 2006-01
August 3, 2006
Page 10
Ordinance No. 769
Page 15 of-19
Maximum Special Tax for Taxable Public Property and Taxable Property Owner Association
Property.
G. APPEALS AND INTERPRETATIONS
Any landowner or resident who feels that the amount of the Special Tax levied on their
Assessor's Parcel is in error may submit a written appeal to CFD No. 2006-01. The CFD
Administrator shall review the appeal and if the CFD Administrator concurs, the amount of
the Special Tax levied shall be appropriately modified through an adjustment to the Special
Tax levy in the following Fiscal Year. No refunds shall be given in the current Fiscal Year.
The Council may interpret this Rate and Method of Apportionment for purposes of clarifYing
any ambiguity and make determinations relative to the annual administration of the Special
Tax and any landowner or resident appeals. Any decision of the Council shall be final and
binding as to all persons.
H. MANNER OF COLLECTION
The Special Tax will be collected in the same manner and at the same time as ordinary ad
valorem property taxes; provided, however, that CFDNo. 2006-01 may directly bill the
Special Tax, may collect Special Taxes at a different time or in a different manner if
necessary to meet its financial obligations, and may covenant to foreclose and may actually
foreclose on delinquent Assessor's Parcels as permitted by the Act.
I. PREPAYMENT OF SPECIAL TAX
The following additional definition applies to this Section I:
"Previously Issued Bonds" means, for any Fiscal Year, all Outstanding Bonds that are
deemed to be outstanding under the Fiscal Agent Agreement after the first interest and/or
principal payment date following the current Fiscal Year.
Only an Assessor's Parcel of Developed Property, or Undeveloped Property for which a
building permit has been issued, may be prepaid. The Special Tax obligation applicable to
an Assessor's Parcel in CFD No. 2006-01 may only be prepaid after all authorized CFD No.
2006-0 I Bonds have already been issued, or after the Council has covenanted that it will not
issue any additional CFD No. 2006-01 Bonds (except refunding bonds) to be supported by
Special Taxes levied under this Rate and Method of Apportionment. The obligation of the
Assessor's Parcel to pay any Special Tax may be permanently satisfied as described herein,
provided that a prepayment may be made with respect to a particular Assessor's Parcel only
ifthere are no delinquent Special Taxes with respect to such Assessor's Parcel at the time of
prepayment. An owner of an Assessor's Parcel intending to prepay the Special Tax
obligation shall provide the CFD Administrator with written notice of intent to prepay.
Within 30 days of receipt of such written notice, the CFD Administrator shall notifY such
owner of the prepayment amount of such Assessor's Parcel. Prepayment must be made not
less than 45 days prior to any redemption date for the CFD No. 2006-01 Bonds to be
redeemed with the proceeds of such prepaid Special Taxes.
city of Rancho Cucamonga (Vintner's Grove)
CFD No. 2006-01
August 3, 2006
Page 1l
Ordinance No. 769
Page 16 of 19
The Special Tax Prepayment Amount (defined below) shall be calculated as
summarized below (capitalized terms as defined below):
Bond Redemption Amount
plus
plus
plus
less
less
Total: equals
Redemption Premium
Defeasance Amount
Administrative Fees and Expenses
Reserve Fund Credit
Capitalized Interest Credit
Special Tax Prepayment Amount
As ofthe proposed date of prepayment, the Special Tax Prepayment Amount 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 Maximum
Special Tax for the Assessor's Parcel to be prepaid. For Assessor's Parcels of
Undeveloped Property for which building permits have already been issued,
compute the Maximum Special Tax for the Assessor's Parcel to be prepaid as
though it were already designated as Developed Property, based upon the
building permit which has been issued for that Assessor's Parcel.
3. Divide the Maximum Special Tax computed pursuant to paragraph 2 by the
estimated Maximum Special Taxes for CFD No. 2006-01 based on the
Developed Property Special Taxes which could be charged in the current
Fiscal Year on all expected development in CFD No. 2006-0 I (as reasonably
determined by the CFD Administrator), excluding any Assessor's Parcels
which have been prepaid; and
4. Multiply the quotient computed pursuant to paragraph 3 by the Previously
Issued Bonds to compute the amount of Previously Issued Bonds to be retired
and prepaid (the "Bond Redemption Amount").
5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4
by the applicable redemption premium (e.g., the redemption price - 100%), if
any, on the Previously Issued Bonds to be redeemed (the "Redemption
Premium").
6. Compute the amount needed to pay interest on the Bond Redemption
Amount from the first bond interest and/or principal payment date not
covered by the current Fiscal Year Special Taxes until the earliest
redemption date for the Previously Issued Bonds.
7. Determine the Special Taxes levied on the Assessor's Parcel in the current
Fiscal Year that have not yet been paid.
City of Rancho Cucamonga (Vintner's Grove)
CFD No. 1006-01
August 3, 2006
Page 11
Ordinance No. 769
Page 17 of 19
8. Compute the minimum amount the CFD Administratorreasonably expects to
derive from the reinvestment of the Special Tax Prepayment Amount less the
Administrative Fees and Expenses (defined below) from the date of
prepayment until the redemption date for the Previously Issued Bonds to be
redeemed with the prepayment.
9. Add the amounts computed pursuant to paragraphs 6 and 7 and subtract the
amount computed pursuant to paragraph 8 (the "Defeasance Amount'l
10. The administrative fees and expenses ofCFD No. 2006-01 are as calculated
by the CFD Administrator and include the costs of computation of the
prepayment, the costs to invest the prepayment proceeds, the costs of
redeeming CFD No. 2006-0 I Bonds, and the costs of recording any notices
to evidence the prepayment and the redemption (the "Administrative Fees
and Expenses").
II. The reserve fund credit (the "Reserve Fund Credit") shall equal the lesser of:
(a) the expected reduction in the reserve requirement (as defined in the Fiscal
Agent Agreement), if any, associated with the redemption of Previously
Issued Bonds as a result of the prepayment, or (b) the amount derived by
subtracting the new reserve requirement (as defined in the Fiscal Agent
Agreement) in effect after the redemption of Previously Issued Bonds as a
result of the prepayment from the balance in the reserve fund on the
prepayment date, but in no event shall such amount be less than zero. No
Reserve Fund Credit shall be granted if the amount then on deposit in the
reserve fund for the Previously Issued Bonds is below 100% of the reserve
requirement (as defined in the Fiscal Agent Agreement).
12. If any capitalized interest for the Previously Issued Bonds will not have been
expended as of the date immediately following the first bond interest andlor
principal payment date following the current Fiscal Year, a capitalized
interest credit shall be calculated by multiplying the quotient computed
pursuant to paragraph 3 by the expected balance in the capitalized interest
fund after such first interest andlor principal payment (the "Capitalized
Interest Credit").
13. The Special Tax prepayment is equal to the sum of the amounts computed
pursuant to paragraphs 4, 5, 9, and 10, less the amounts computed pursuant to
paragraphs II and 12 (the "Special Tax Prepayment Amount").
From the Special Tax Prepayment Amount, the amounts computed pursuant to paragraphs 4,
5, 9, 10, II and 12 shall be deposited into the appropriate fund as established under the
Fiscal Agent Agreement and be used to redeem Previously Issued Bonds, as applicable, or
make scheduled debt service payments or to pay administrative expenses related to the
prepayment of the Special Tax.
The Special Tax Prepayment Amount may be insufficient to redeem a full $5,000 increment
ofCFD No. 2006-01 Bonds. In such cases, the increment above $5,000 or integral multiple
City of Rancho Cucamonga (Vintner's Grove)
CFD No. 2006-01
August 3, 2006
Page 13
Ordinance No. 769
Page 18 of 19
thereof will be retained in the appropriate fund established under the Fiscal Agent
Agreement to be used with the next prepayment ofCFD No. 2006-01 Bonds or to make
scheduled debt service payments on such bonds.
Upon confirmation of the payment of the current Fiscal Year's Special Tax levy as
determined under paragraph 7 (above), the CFD Administrator shall remove the current
Fiscal Year's Special Tax levy for such Assessor's Parcel from the County tax rolls. With
respect to any Assessor's Parcel for which the Special Tax obligation is prepaid in
accordance with this Section I, the Council shall cause a suitable notice to be recorded in
compliance with the Act, to indicate the prepayment of Special Taxes and the release of the
Special Tax lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to
pay the Special Tax shall cease.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless, at the
time of such proposed prepayment, the amount of Maximum Special Taxes that may be
levied on Taxable Property within CFD No. 2006-01 (after excluding 11.0 Acres of Public
Property and Property Owner Association Property as set forth in Section F) both prior to
and after the proposed prepayment is at least equal to the sum of (i) the Administrative
Expenses, as defined in Section A above, and (ii) 1.10 times the maximum annual debt
service on all Outstanding Bonds.
J. TERM OF SPECIAL TAX
The Special Tax shall be levied for a period not to exceed fifty years commencing with
Fiscal Year 2006-07, provided however that Special Taxes will cease to be levied in an
earlier Fiscal Year ifthe CFD Administrator has determined (i) that all required interest and
principal payments on the CFD No. 2006-01 Bonds have been paid; and (ii) all Authorized
Facilities have been constructed.
K:\CLIENTS2\RanchoCucamongaWintner's Grove\RMA\Vintner RMA for ROI.doc
City of Rancho Cucamonga (Vintner's Grove)
CFD No. 1006-01
August 3, 2006
Page 14
Ordinance No. 769
Page 19 of 19
CITY OF RANCHO CUCAMONGA
COMMUNITY FACILITIES DISTRICT NO. 2006-01
(VINTNER'S GROVE)
MAXIMUM SPECIAL TAX FOR DEVELOPED PROPERTY
FISCAL YEAR 2006-2007
Land Use Residential Floor Maximum
Class Description Area Special Tax
1 Single Family Detached Property More than 2,900 SF $3,687 per unit
2 Single Family Detached Property 2,60 I - 2,900 SF $3,379 per unit
3 Single Family Detached Property 2,301 - 2,600 SF $3,244 per unit
4 Single Family Detached Property Less than 2,30 I SF $3,109 per unit
5 Single Family Attached Property More than 1,850 SF $2,774 per unit
6 Single Family Attached Property 1,601 - 1,850 SF $2,678 per unit
7 Single Family Attached Property 1,351 - 1,600 SF $2,50 I per unit
8 Single Family Attached Property Less than 1,351 SF $2,324 per unit
9 Non-Residential Property NA $49,234 per Acre