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HomeMy WebLinkAbout643 - Ordinances ORDINANCE NO. 643 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2000-03 (RANCHO SUMMIT) 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- 03 (RANCHO SUMMIT) (the "District"). 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 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 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 valorera 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. 643 Page 2 of 11 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 15th day of November. AYES: Alexander, Biane Curatalo, Dutton, Williams NOES: None ABSENT: None ABSTAINED: None Wdh ander Mayor ATTEST: Ordinance No. 643 Page 3 of 11 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 1st day of November 2000, and was passed at a regular meeting of the City Council of the City of Rancho Cucamonga held on the 15th day of November 2000. Executed this 16th day of November 2000, at Rancho Cucamonga, California. Ordinance No. 643 Page 4 of 11 EXHIBIT "A" CITY OF RANCHO CUCAMONGA COMMUNITY FACILITIES DISTRICT NO. 2000-03 (RANCHO SUMMIT) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX 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 appodionment 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 herein provided. I. DEFINITIONS "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part I 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 Assessor's Parcel Map, or if the iand 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 map or plan recorded with the County. "Administrative Fees or Expenses" means the actual or estimated costs incurred by the City to determine, levy and collect the Special Taxes, including salaries of City employees and the fees of consultants, legal counsel, paying agents, fiscal agents, and trustees; the costs of collecting installments of the Special Taxes; cost of arbitrage calculation and arbitrage rebates, preparation of required reports; and any other costs required to administer the CFD as determined by the City. "Administrative Services Director" means the Administrative Services Director of the City or his or her designee. "Allocated Share" means, as applicable, the greater of the Assigned Facilities Special Tax for a Parcel divided by the Assigned Facilities Special Tax Revenue or the Backup Facilities Special Tax for a Parcel divided by the Backup Facilities Special Tax Revenue. "Assessor" means the Assessor of the County. "Assigned Facilities Special Tax" means the Special Tax for each Land Use Class of Developed Property as determined in Section III, Table 1. "Assigned Facilities Special Tax Revenue" means the sum of the Assigned Facilities Special Tax for all Developed Property projected at buildout of the CFD, as determined in accordance with Section III, Table 1. "Backup Facilities Special Tax" means the Backup Facilities Special Tax applicable to each Assessor's Parcel of Developed Property, as determined in accordance with Section III below, Ordinance No. 643 Page 5 of 11 "Backup Facilities Special Tax Revenue" means the sum of the Backup Facilities Special Tax for all Developed Property projected at buildout of the CFD, as determined in accordance with Section I II below. "Bonds" mean any bonds issued by the CFD or other debt as defined in Section 53317 (d) of the Act incurred by CFD 2000-03. "Bond Share" means the share of Bonds assigned to a Developed Parcel calculated pursuant to Section VI. "CFD" means the City of Rancho Cucamonga Community Facilities District No. 2000-03 (Rancho Summit). "City" means the City of Rancho Cucamonga, California. "Council" means the City Council of the City of Rancho Cucamonga acting as the legislative body of the CFD pursuant to the Act. "County" means the County of San Bernardino, California. "Debt Service" means for each calendar year, the total scheduled amount of the principal of and the interest payable on any Outstanding Bonds during the calendar year commencing on January 1 of such Fiscal Year. "Developed Property" means for each Fiscal Year, all Taxable Property, for which a building permit for new construction was issued after March 1, 2000 and prior to March 1 of the prior Fiscal Year. "Facilities 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; (iii) 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 any credit from earnings on the bond reserve fund. "Fiscal Year" means the period starling on July 1 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. "Maintenance Special Tax" means the amount of Special Tax, determined in accordance with Section III, which may be levied for maintenance in any Fiscal Year on Developed Property. "Maintenance Special Tax Requirement" means for any Fiscal Year the total of i) the amount necessary to maintain the authorized facilities as determined by the City Engineer or his/her designee, ii) the amount necessary to pay for the annual costs of administering the maintenance services and the levy and collection of the Maintenance Ordinance No. 643 Page 6 of 11 Special Tax, and, iii) an amount necessary to fund an operating reserve for maintenance, unanticipated increases in the cost of providing such maintenance services and unanticipated expenditures. "Maximum Facilities Special Tax" means the greater of the Assigned Facilities Special Tax or the Backup Facilities Special Tax, determined in accordance with Section III, which can be levied in any Fiscal Year on any Parcel. "Maximum Special Tax" means the combination of the Maximum Facilities Special Tax, as determined in accordance with Section III, and the Maintenance Special Tax, as determined in accordance with Section III. "Non Residential Property" means any Developed Property which is not assigned to Land Use Classes 1 through 5, inclusive. "Outstanding Bonds" means the total principal amount of Bonds that have been issued and not retired or defeased. "Parcel" means any County assessor's parcel that is within the boundaries of the CFD, based on the equalized tax rolls of the County as of January 1 of the prior Fiscal Year. "Parcel's Allocated Share" means the Maximum Facilities Special Tax for a Parcel divided by the aggregate Maximum Facilities Special Tax for all Parcels. "Payoff Parcel" means any Developed Parcel for which a prepayment of the Facilities Special Tax Obligation is being calculated pursuant to Section VI. "Reserve Fund" means the total amount held in any bond reserve fund established for the Outstanding Bonds of the CFD. "Reserve Requirement" shall have the meaning given such term in the Indenture. "Reserve Fund Share" means the total Reserve Fund amount multiplied by the Parcel's Allocated Share. "Residential Floor Area" means, for a Parcel of Developed Propeily assigned to one of Land Use Classes I through 5, 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 a Parcel shall be made by reference to the building permit(s) issued for such Parcel. "Special Tax" means the special tax to be levied pursuant to the Act and this Rate and Method of Apportionment of Special Tax in each Fiscal Year on each Parcel of Developed Property or Undeveloped Property within the CFD to fund the Facilities Special Tax Requirement and Maintenance Special Tax Requirement. "Special Tax Obligation" means the total obligation of a Taxable Parcel to pay the Facilities Special Tax or the Maintenance Special Tax, as applicable, for the remaining Ordinance No. 643 Page 7 of 11 term of the Facilities Special Tax or the remaining life of the CFD in the case of the Maintenance Special Tax. "Subdivided Undeveloped Property" means lots created by the recordation of a Tract Map and assigned an individual Assessor Parcel number by the Assessor. "Taxable Parcel" means any Parcel that is not a Tax-Exempt Parcel. "Tax-Exempt Property" means not to exceed 27.5 acres of land presently designated on the land use entitlements approved by the City for development within the CFD for public use as parkways, parks and trails. Should any of these areas become subject to private development, they shall become subject to the Special Tax described in Section III, from the time the appropriate public agency acts to permit the property to become available for private development. "Tract Map" means a final subdivision map or parcel map approved by the City to create lots which may be developed in accordance with the approved land use entitlements applicable to such lots. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property. 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 Developed Property, Subdivided Undeveloped Property, Tax-Exempt Property or Undeveloped Property and each such Parcel shall be subject to the levy of Special Taxes in accordance with the Section Ill below. III. MAXIMUM SPECIAL TAX RATES A. Facilities Special Tax Developed Property Each Parcel's Maximum Facilities Special Tax shall be calculated by using the greater of the Assigned Facilities Special Tax or the Backup Facilities Special Tax. Each Parcel of Developed Property which involves residential development shall be assigned to Land Use Classes 1 through 5 as listed in Table I below based on the Residential Floor Area Footage allocated to the dwelling unit constructed or permitted to be constructed on such Parcel. Non Residential Property shall be assigned to Land Use Class 6. Ordinance No. 643 Page 8 of 11 TABLE 1 Land Use Residential Floor Area Assigned Facilities Class Special Tax I <2,500 Sq. Ft $243.00 per unit 2 2,500-2,999 Sq. Ft 300.00 per unit 3 3,000-3,499 Sq. Ft 566.00 per unit 4 3,500-3,999 Sq. Ft 998.00 per unit 5 4,000 Sq. Ft and above 1,259.00 per unit 6 Non-Residential $2,591.00 per Acre Property On each July 1, commencing on July 1, 2002, the Assigned Facilities Special Tax shall be increased by two percent (2%) of the amount in effect for the previous Fiscal Year. Backup Facilities Special Tax Taxes may exceed the levels set forth in Table 1 if the Backup Facilities Special Tax is greater than the Assigned Facilities Special Tax. For Fiscal Year 2001/02 the Backup Facilities Special Tax for Developed Property is $0.063 per Square Foot of lot space. On each July 1, commencing on July 1, 2002, the Backup Facilities Special Tax shall be increased by two percent (2%) of the amount in effect for the previous Fiscal Year. Undeveloped Property The Fiscal Year 2001/02 Maximum Facilities Special Tax for Undeveloped Property shall be $2,979 per Acre or $600 per subdivided lot. On each July 1, commencing on July 1, 2002, the Maximum Facilities Special Tax for Undeveloped Properly shall be increased by two percent (2%) of the amount in effect for the previous Fiscal Year. B. Maintenance Special Tax In addition, each parcel shall be subject to a Maintenance Special Tax as described in Table II TABLE II LAND USE CLASS MAINTENANCE SPECIAL TAX Developed Property (Classes 1-5) $900.00 per unit Non-Residential Property 4,462.50 per Acre Subdivided Undeveloped Property 900.00 per Parcel Undeveloped Property 4,462.50 per Acre Ordinance No. 643 Page 9 of 11 The Maintenance Special Tax shall be levied beginning in Fiscal Year 2001/02. On each July 1, commencing July 1, 2002, the Maintenance Special Tax shall be increased by two percent (2%) of the amount in effect for the previous Fiscal Year. IV. APPORTIONMENT OF SPECIAL TAX A. Facilities Special Tax Commencing with Fiscal Year 2001/02 and for each following Fiscal Year, the Council shall determine the Facilities Special Tax Requirement and levy the Facilities Special Tax until the amount of Facilities Special Taxes levied equals the Facilities Special Tax Requirement. The Facilities Special Taxes shall be levied each Fiscal Year as follows: First: The Facilities Special Tax shall be levied on Developed Property in an amount up to 100% of the applicable Assigned Facilities Special Tax; Second: If additional monies are needed to satisfy the Facilities Special Tax Requirement after the first step has been completed, the Facilities Special Tax shall be levied Proportionately on each Parcel of Undeveloped Property up to 100% of the Maximum Facilities Special Tax for Undeveloped ProperEy; Third: If additional monies are needed to satisfy the Facilities Special Tax Requirement after the first two steps have been completed, then the levy of the Facilities Special Tax on each Parcel of Developed Property whose Maximum Facilities Special Tax is determined through the application of the Backup Facilities Special Tax shall be increased Proportionately from the Assigned Facilities Special Tax up to the Maximum Facilities Special Tax for each such Parcel. B. Maintenance Special Tax First: The Maintenance Special Tax shall be levied on Developed Property in an amount up to 100% of the Maintenance Special Tax; Second: If additional monies are needed to satisfy the Maintenance Special Tax Requirement after the first step has been completed, the Maintenance Special Tax shall be levied Proportionately on each Parcel of Subdivided Undeveloped Property up to 100% of the Maximum Facilities Special Tax for Subdivided Undeveloped Property; Third: If additional monies are needed to satisfy the Maintenance Special Tax Requirement after the first two steps have been completed, the Maintenance Special Tax shall be levied Proportionately on each Parcel of Undeveloped Property up to 100% of the Maximum Facilities Special Tax for Undeveloped Property; Ordinance No. 643 Page 10 of 11 V. MANNER OF COLLECTION Collection of the Maintenance Special Tax and the Facilities Special Tax shall be by the County of San Bernardino in the same manner as ordinary ad valorem property taxes. 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 CFD may provide 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 SPECIAL TAX OBLIGATION Property owners may prepay and permanently satisfy the Special Tax Obligation for the Facilities Special Tax on Developed Property ("Facilities Special Tax Prepayment") by a cash settlement with the CFD as permitted under Government Code Section 53344. Prepayment is permitted only under the following conditions: The CFD determines that the prepayment of the Facilities Special Tax Obligation does not jeopardize its ability to make timely payments of Debt Service on Outstanding Bonds and any authorized but unissued Bonds. No Facilities Special Tax prepayment shall be allowed unless the Maximum Facilities 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 and any authorized but unissued Bonds. Any property owner prepaying the Special Tax Obligation for the Facilities Special Tax must pay any and all delinquent Special Taxes and penalties for the Payoff Parcel prior to prepayment. PREPAYMENT AMOUNT FOR FACILITIES SPECIAL TAX The amount of the Facilities Special Tax Prepayment shall be established by the following steps: Step A.I: Determine the Assigned Facilities Special Tax and the Backup Facilities Special Tax for the Payoff Parcel based on the assignment of the Maximum Facilities Special Tax described in Section III above. Step A.2: Divide the Assigned Facilities Special Tax for the Payoff Parcel from Step A.1 by the Assigned Facilities Special Tax Revenue. Divide the Backup Facilities Special Tax for the Payoff Parcel by the Backup Facilities Special Tax Revenue, The greater amount calculated in this Step shall be the Payoff Parcel's Allocated Share. Step A.3: 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 plus the total amount of all authorized but unissued Bonds. Ordinance No. 643 Page 11 of 11 Step A.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 Reserve Requirement or existing monies in the Reserve Fund, if any, for the Outstanding Bonds multiplied by the Allocated Share. Step A.5: Calculate the amount needed to pay interest on the Parcel's Allocated 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 Facilities Special Tax Prepayment. Subtract from this amount, the amount of interest that is reasonably expected to be earned from the reinvestment of the Parcel's Allocated Share from such first Bond interest and/or principal payment date following the current Fiscal Year until such redemption date for the Bonds. Step A.6: Determine the total Facilities 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 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 calculation or with the application of the proceeds of the Facilities Special Tax Prepayment. Prepayment Amount for the Facilities and Maintenance Special Tax a) Determine the amount to prepay and permanently satisfy the Facilities Special Tax by computing Steps 1.A through A.6 as described above. b) Add the present value of the Parcel's remaining Maintenance Special Tax payments at the average yield on Bonds issued for the CFD. This shall be calculated by using the current maximum Maintenance Special Tax determined pursuant to Section III.B. increased by 2% annually for 100 years to determine remaining payments. VI. TERM OF SPECIAL TAX Subject to prepayment of the Special Tax Obligation for a Parcel pursuant to Section V, the term of the levy of the Special Tax shall be as set forth below. The Facilities 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 2036-2037. Taxable Property in the CFD shall remain subject to the Maintenance Special Tax in perpetuity.