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