HomeMy WebLinkAbout645 - Ordinances ORDINANCE NO. 645
ORDINANCE OF THE CiTY COUNCIL OF THE CITY OF
RANCHO CUCAMONGA, CALIFORNIA, ACTING AS THE
LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT
NO. 2000-01 (SOUTH ETIWANDA) 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-
01 (SOUTH ETIWANDA) (the "District").
The City Council of the City of Rancho Cucamonga, California, acting as the legislative body of
Community Facilities District No. 2000-01 (SOUTH ETIWANDA), 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 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. 645
Page 2 of 12
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, Wilfiams
NOES: None
ABSENT: None
ABSTAINED: None
William J. A,~der, Mayor
ATTEST:
D~bra J. Adarr~s.~MC, City Clerk
Ordinance No. 645
Page 3 of 12
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 6~h day of December 2000.
Executed this 7th day of December, at Rancho Cucamonga, California.
Ordinance No. 645
Page 4 of 12
EXHIBIT A
CITY OF RANCHO CUCAMONGA
COMMUNITY FACILITIES DISTRICT NO. 2000-01
(SOUTH ETIWANDA)
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
A Special Tax shall be applicable to each Parcel of Taxable Property located within the
boundaries of Community Facilities Distdct No. 2000-01 ("CFD"). The amount of Special
Tax to be levied each Fiscal Year, commencing in Fiscal Year 2001-2002 on a Parcel
shall be determined by the City Council of the City of Rancho Cucamonga, acting in its
capacity as the legislative body of the CFD by applying the appropriate Special Tax for
"Developed Property" and "Undeveloped Property" as set forth in Sections B, C, and D
below. All of the real property within the CFD, unless exempted by law or by the
provisions hereof in Section E., shall be taxed for the purposes, to the extent and in the
manner herein provided.
A. DEFINITIONS
The terms hereina~er set forth have the following meanings:
"Act" means the Mello~Roos Community Facilities Act of 1982, as amended, being
Chapter 2.5, Part 1 of Division 2 of Title 5 of the California Government Code of the
State of California.
"Administrative Expenses" means all actual or reasonably estimated costs and
expenses of the City to carry out its duties as the administrator of the CFD as
allowed by the Act, which shall include without limitation, all costs and expenses
arising out of or resulting from the annual levy and collection of the Special Tax, any
litigation involving the CFD, continuing disclosure undertakings of the City as
imposed by applicable laws and regulations, communication with bondholders and
administrative expenses.
"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.
"Assessor's Parcel Map" means an official map of the Assessor of the County of
San Bemardino designating parcels by Assessor's Parcel number.
"Assigned Special Tax" means the Special Tax for each Land Use Category of
Developed Property, as determined in accordance with Section C.1 .a. below.
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Ordinance No. 645
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"Assigned Special Tax Revenue" means the sum of the Assigned Special Tax for
all Developed Property projected at buildout of the CFD, as determined in
accordance with Section C, Table 1.
"Backup Special Tax" means the Special Tax amount set forth in Section C.1 .b.
below.
"Backup Special Tax Revenue" means the sum of the Backup Special Tax for all
Developed Property projected at buildout of the CFD, as determined in accordance
with Section C below.
"Bonds" means any bonds or other indebtedness (as defined in the Act) issued by
the CFD and secured by the levy of Special Taxes.
"Bond Share" means the share of Bonds' assigned to a Payoff Parcel as specified
in Section G below.
"CFD" means Community Facilities District No. 2000-01 (South Etiwanda) of the
City established pursuant to the Act.
"City" means the City of Rancho Cucamonga, Califomia.
"Debt Service" means for each calendar year, the total scheduled amount of
principal and interest payable on any Outstanding Bonds during the calendar year
commencing on January 1 of such Fiscal Year.
"Developed Property" means all Pamels of Taxable Property for which a building
permit has been issued pdor to Mamh 1st preceding the Fiscal Year for which the
Special Tax is being levied.
"Exempt Property" means any Pamel or portion of a Parcel, which is exempt from
Special Taxes pursuant to Section E. below.
"Final Map" means the subdivision of property resulting from the recordation of a
final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act
(California Govemment Code Section 66410 et seq.) or the 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.
"Fiscal Year" means the period starting on July 1 and ending on the following June
30.
"Indenture" means the indenture, fiscal agent agreement, trust agreement,
resolution or other instrument pursuant to which Bonds are issued, as modified,
amended and/or supplemented from time to time, and any instrument replacing or
supplementing the same.
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Ordinance No. 645
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"Land Use Category" means any of the catego:ies listed in Table 1.
"Maximum Annual Special Tax" means the maximum Special Tax, determined in
accordance with Section C, which can be levied in any Fiscal Year on any Pamel of
Taxable Property.
"Net Taxable Acre" means the acreage of a Parcel of Taxable Property as
indicated on the most recent Assessor's Parcel Map, or if the land area is not shown
on the Assessor's Parcel Map, the land area shown on the applicable Final Map, or
other recorded City parcel map.
"Non-Residential Property" means all Parcels of Developed Property for which a
building permit was issued for any type of non-residential use.
"Outstanding Bonds" means the total principal amount of Bonds tl~at have been
issued and not retired or clefeased.
"Parcel(s)" means a lot or parcel shown on an Assessor's Parcel Map with an
assigned parcel number as of january 1 preceding the Fiscal Year for which the
Special Tax is being levied.
"Parcel's Allocated Share" means the amount calculated in Step 2 of Section G.
"Payoff Parcel" means any Parcel of Taxable PrOperty for which a prepayment of
the Special Tax Obligation is being calculated pursuant to Section G.
"Property Owner's Association Property" means any property within the
boundary of the CFD which, as of January I of the preceding Fiscal Year for which
the Special Tax is being levied, has been conveyed, dedicated to, or irrevocably
dedicated to a property owner association, including any master or sub-association.
"Public Property" means any Parcel within the boundary of the CFD which, as of
January I of the preceding Fiscal Year for which the Special Tax is being levied, is
used for rights-of-way or any other purpose and is owned by, dedicated to, or
irrevocably offered for dedication to the federal government, the State of California,
the county, City, or any other local jurisdiction, provided, however, 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.
"Proportionately" means for Developed Property that the ratio of the actual Special
Tax levy to the Assigned Special Tax is the same for all Parcels of Developed
Property. For Undeveloped Property, Public Property and/or Property Ownere
Association Property that is not Exempt Property pursuant to Section E.,
"Proportionately" means that the ratio of the actual Special Tax levy per acre to the
Maximum Special Tax per acre is the same for all such Parcels.
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Ordinance No. 645
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"Reserve Fund" means the total amount held in any bond reserve fund established
pursuant to the provisions of the Indenture for the Outstanding Bonds of the CFD.
"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.
"Residential Floor Area" means all of the square footage of living area of a
residential structure, not including any carport, walkway, garage, overhang, patio,
enclosed patio or similar area, on a Parcel. The determination of Residential Floor
Area shall be made by reference to the building permit(s) for the Parcel.
"Residential Property" means all Parcels of Developed Property for which a
building permit has been issued for purposes of constructing one or more residential
dwelling units.
"Special Tax(es)" means the special tax to be levied in each Fiscal Year on each
Parcel of Taxable Property to fund the Special Tax Requirement.
"Special Tax Obligation" means the total obligation of a Parcel of Taxable Property
to pay the Special Tax for the remaining life of the CFD.
"Special Tax Requirement" means that amount required in any Fiscal Year by the
CFD to pay: (i) Debt Service on all Outstanding Bonds; (ii) periodic costs on the
Bonds, including but not limited to, credit enhancement and rebate payments on the
Bonds; (iii) Administrative Expenses; and (iv) any amounts required to establish or
replenish any Reserve Fund to the Reserve Requirement for the Outstanding Bonds;
less (v) a credit for funds available to reduce the annual Special Tax levy as
determined pursuant to the Indenture.
"Taxable Property" means all Pamels in the CFD, which are not exempt from the
Special Tax pursuant to law or Section E below.
"Undeveloped Property" means all Parcels of Taxable Property not classified as
Developed Property, Public Property and/or Property Owner's Association Property
that are not Exempt Property pursuant to the provisions of Section E.
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Ordinance No. 645
Page 8 of 12
B. ASSIGNMENT TO LAND USE CATEGORY
Each Fiscal Year, commencing with the 2001-2002 Fiscal Year, all Parcels of
Taxable Property within the CFD shall be classified as either Developed Property,
Undeveloped Property, Public Property and/or Property Owner's Association
Property that are not Exempt Property pursuan~ to the provisions in Section E.', and
shall be subject to the levy of Special Ta~xes in accordance with this Rate and
Method of Apportionment as determined pursuant to Sections C., D., and E. below.
Parcels of Developed Property shall further be classified as Residential Property or
Non-Residential Property. A Parcel of Residential Property shall further be classified
to its appropriate Land Use Category based on the Residential Floor Area of such
Pamel.
C. MAXIMUM SPECIAL TAX RATE
1. Developed Property
The Maximum Special Tax for each Parcel classified as Developed Property
shall be the greater of (i) the applicable Assigned Special Tax set forth in Table 1
below or (ii) the amount derived by application of the Backup Special Tax.
a. Assi.qned Special Tax
The Assigned Special Tax for each Parcel of Developed Property is shown
in Table 1 below.
TABLE 1
Assigned Special Taxes for Developed Property
Community Facilities Distdct No. 2000-01
Assigned
Taxabl Special
Land Use Category e Residential Floor Area Tax Per
Unit Taxable
Unit
1 - Residential Property D/U 2,30'1 sq. ft. or ~lreater $500
2 o Residential Property D/U 1,801 sq. ~. to 2,300 sq. ft. $475
3 - Residential Property D/U '1,800 sq. ft. or less $425
4 - Non - Residential Property Acre N/A $3,700
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Ordinance No. 645
Page 9 of 12
b. Backup Special Tax
When a Final Map is recorded the Backup Special Tax for the Pamels of
Taxable Property within such Final Map area shall be determined by
multiplying $3,700 by the total Net Taxable Acreage in such Final Map and
dividing such amount by the number of Parcels of Taxable Property (i.e., the
number of residential lots) within such Final Map.
If a Final Map within the CFD includes Parcels of Taxable Property for which
building permits for both residential and non-residential construction may be
issued, then the Backup Special Tax for each Parcel of Residential Property
within the CFD shall be computed by the Administrator exclusive of the
allocable portion of total Net Taxable Acreage attributable to Parcels of
Taxable Property for which building permits for non- residential construction
may be issued.
2. Undeveloped Property
The Maximum Special Tax for each Pamel of Undeveloped Property shall be
$3,700 per Net Taxable Acre.
3. Public Property and/or Property Owners Association Property that is not
Exempt Property pursuant to the provisions of SectiOn E.
The Maximum Special Tax for each Parcel of 'Public Property and/or Property
Owners Association Property that is not Exempt Property pursuant to the
provisions of Section E., shall be $3,700 per Net Taxable Acre.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2001-2002 and for each following Fiscal Year, the
City Council shall determine the Special Tax Requirement and shall levy the Special
Tax on all Taxable Property in the CFD until the amount of Special Taxes equals the
Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as
follows:
First: The Special Tax shall be levied Proportionately on each Parcel of Developed
Property at up to 100% of the applicable Assigned Special Tax to satisfy the Special
Tax Requirement;
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 Parcel of Undeveloped Property at up to 100% of the
Maximum Special Tax for Undeveloped Property;
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Ordinance No. 645
Page 10 of 12
Third: If additional moneys are needed to satis?y the Special Tax Requirement after
the first two steps have been completed, the Special Tax to be levied on each Parcel
of Developed Property whose Maximum Speciai Tax is dedved by the application of
the Backup Special Tax shall be increased Propodionately from the Assigned
Special Tax up to the Maximum Special Tax for each such Parcel;
Fourth: If additional monies are needed to satisfy the Special Tax Requirement after
the first three steps have been completed, the Special Tax shall be levied
Proportionately on each Parcel of Public Property and/or Property Owner's
Association Property that is not Exempt Property pursuant to the provisions of
Section E. at up to 100% of the Maximum Special Tax.
Notwithstanding the above, under no circumstances will the Special Taxes levied
against any Parcel of Residential Property be increased by more than ten percent
(10%) per Fiscal year as a consequence of delinquency or default by the owner of
any other Parcel of Taxable Property within the CFD.
E. EXEMPTIONS
The City Council shall not levy Special Taxes on up to 26.04 Net Taxable Acres of
Public Property and Property Owner's Association Property within the CFD. Exempt
Property status will be assigned by the Administrator in the chronological order in
which property becomes Public Property and Property Owners Association
Property.
After the limit of 26.04 Net Taxable Acres within the CFD has been reached, the
Maximum Special Tax obligation for any additional Public Property and/or Properly
Owners Association Properly within the CFD shall be subject to the levy of the
Special Tax as provided for in the fourth step in Section D.
F. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as
ordinary Ad valorem property taxes and shall be subject to the same penalties, the
same procedure, sale and lien priority in the case of delinquency; provided,
however, that the City 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 as permitted by the Act
on Parcels of Taxable Property for which the payment of Special Taxes are
delinquent.
G. PREPAYMENT OF SPECIAL TAX
Property owners may prepay and permanently satisfy the Special Tax Obligation on
Developed Property ('Special Tax Prepayment") by a cash settlement with the City
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Ordinance No. 645
Page 11 of 12
as permitted under Government Code Section 53344. Prepayment is permitted only
under the following conditions:
· The City determines that the prepayment of the Special Tax Obligation
does not jeopardize its ability to make timely payments of Debt Service on
Outstanding Bonds. No Special Tax Prepayment shall be allowed unless
the Maximum Special Tax that may be levied on all Taxable Property
other than the Parcel for which the Special Tax Obligation is being prepaid
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 Pamel prior
to prepayment.
The amount of the Special Tax Prepayment shall be established by the
following steps:
Step 1: Determine the Assigned Special Tax and the Backup Special
Tax for the Payoff Pamel based on the assignment of the
Maximum Special Tax described in Section C above.
Step 2: Divide the Assigned Special Tax for the Payoff Parcel from
Step I by the Assigned Special Tax Revenue. Divide the
Backup Special Tax for the Payoff Parcel by the Backup
Special Tax Revenue. The greater amount calculated in this
step shall be the Payoff Parcel's Allocated Share.
Step3: Determine the Bond Share for the Payoff Parcel by
multiplying the Pamel'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. The 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.
Step 5: Calculate the amount needed to pay interest on Bond Share
from the first Bond interest and/or pdncipal 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
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Ordinance No. 645
Page 12 of 12
from the reinvestment of the Special Tax Prepayment less
money kept by the City to cover costs from the date of the
prepayment until the first redemption date for the Bonds.
Step 6: Determine the total Special Tax Prepayment amount 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 5 and by adding all fees,
call premiums, and expenses incurred by the City in
connection with the prepayment calculation or with the
application of the proceeds of the Special Tax Prepayment.
H. TERM OF THE SPECIAL TAX
For each year that any Bonds are outstanding the Special Tax shall be levied on
all Parcels subject to the Special Tax. If any delinquent Special Taxes remain
uncollected pdor to or after all Bonds are retired, the Special Tax may be levied
to the extent necessary to reimburse the CFD for uncollected Special Taxes
associated with the levy of such Special Taxes, but not later than the 2031-32
Fiscal Year.
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