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HomeMy WebLinkAbout00-235 - Resolutions RESOLUTION NO. 00-235 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, FORMING AND ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 2000-01 (SOUTH ETIWANDA) AND AUTHORIZING SUBMITTAL OF LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS WHEREAS, the CITY COUNCIL of the CITY OF RANCHO CUCAMONGA, CALIFORNIA(the"City Council'), has previously declared its intention and ordered the preparation of a Community Facilities District Report relating to the initiation of proceedings to create a Community Facilities District 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 shall hereinafter be referred to as COMMUNITY FACILITIES DISTRICT NO. 2000-01 (SOUTH ETIWANDA) (the "District'); and, WHEREAS, notice of a public hearing relating to the establishment of the District,the extent of the District, the financing of the acquisition of certain public facilities and the provision of certain public services and all other related matters has been given, and a Community Facilities District Report, as ordered by this City Council, has been presented to this City Council and has been made a part of the record of the hearing on the Resolution of Intention to establish such District; and, WHEREAS, all communications relating to the establishment of the District, the proposed public facilities and public services and the proposed rate and method of apportionment of special tax have been presented, and it has further been determined that a majority protest as defined by law has not been received against these proceedings; and, WHEREAS, inasmuch as there have been less than twelve (12) registered voters residing within the territoryof the District for at least the preceding ninety(90)days,the authorization to levy special taxes within the District shall be submitted to the landowners of the District, such landowners being the qualified electors as authorized by law. NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: SECTION 1: Recitals. The above recitals are all true and correct. SECTION 2: Determinations. It is hereby determined by this City Council that: A. All prior proceedings pertaining to the formation of the District were valid and taken in conformitywith the requirements of the law, and specifically the provisions of the Act, and that this finding and determination is made pursuant to the provisions of Government Code Section 53325.1. Resolution No. 00-235 Page 2 of 17 B. No written protests to the formation of the District or the levy of the special taxes have been received and, therefore, the special taxes proposed to be levied within the District have not been precluded by majority protest pursuant to Section 53324 of the Government Code of the State of California. C. The District as proposed conforms with the City's goals and policies regarding the establishment of community facilities districts. D. Less than twelve (12) registered voters have resided within the territory of the District for each of the ninety (90) days preceding the close of the public hearing, therefore, pursuant to the Act the qualified electors of the District shall be the landowners of the District as such term is defined in Government Code Section 53317(f) and each landowner who is the owner of record as of the close of the public hearing, or the authorized representative thereof, shall have one vote for each acre or portion of an acre of land that she or he owns within the District. E. The time limit specified by the Act for conducting an election to submit the levy of the special taxes to the qualified electors of the District and the requirements for impartial analysis and ballot arguments have been waived with the unanimous consent of the qualified electors of the District. F. The City Clerk, acting as the election official, has consented to conducting any required election on a date which is less than 125 days following the adoption of any resolution forming and establishing the District. G. The Board of Directors of the Cucamonga County Water District ("CCWD") and this City Council have each approved a joint community facilities agreement pursuant to the provisions of the Act pertaining to the acquisition of certain water and sewer improvements to be owned, operated and maintained by CCWD. Resolution No. 00-235 Page 3 of 17 SECTION 3: Community Facilities District Report. The Community Facilities District Reportfor the District(the"Report'), as now submitted by Willdan/MuniFinancial, Special Tax Consultant, shall stand as the report as required pursuant to Government Code Section 53321.5 for all future proceedings and all terms and contents are approved as set forth therein. SECTION 4: Name of District. The City Council does hereby establish and declare the formation of the District known and designated as "COMMUNITY FACILITIES DISTRICT NO. 2000-01 (SOUTH ETIWANDA)." SECTION 5: Boundaries of District.The boundaries and parcels of land for which the public facilities are to be provided and on which special taxes will be levied in order to pay the costs and expenses to provide the authorized public services and to acquire the authorized public facilities are generally described as follows: All property within the boundaries of COMMUNITY FACILITIES DISTRICT NO. 2000-01 (SOUTH ETIWANDA), as shown on a boundary map as previously approved by this legislative body, such map designated by the name of this District, a copy of which is on file in the Office of the City Clerk. The boundary map of the proposed District has been filed pursuant to Sections 3111 and 3113 of the Streets and Highways Code of the State of California in the Office of the County Recorder of the County of San Bernardino, at Page 73 of Book 56/57 of the Book of Maps of Assessment and Community Facilities Districts for such County. SECTION 6: Description of Facilities and Services. A general description of the public facilities which are to be financed under these proceedings, are generally described in Exhibit "A"attached hereto and incorporated herein by this reference. The facilities are facilities which the City Council is authorized by law to contribute revenue to or to construct, own or operate. It is hereby further determined that the proposed facilities and services are necessary to meet increased demands and needs placed upon the City and CCWD as a result of proposed development within the District, and the costs and expenses charged to this District represent the fair share costs of the facilities and services attributable to this District. Resolution No. 00-235 Page 4 of 17 For a full and complete description of such facilities and services, reference is made to the Community Facilities District Report, a copy of which is on file in the Office of the City Clerk. In addition to financing the authorized facilities and services, the financing of those incidental expenses described in the Community Facilities District Report are also approved and authorized. SECTION 7: Special Tax. Except where funds are otherwise available a special tax, secured by recordation of a continuing lien against all non-exempt real property in the proposed District, is hereby authorized, subject to voter approval, to be levied within the boundaries of such District. For particulars as to the rate and method of apportionment of the proposed special tax, reference is made to the attached and incorporated Exhibit "B" (the "Special Tax Formula"), which sets forth in sufficient detail the method of apportionment to allow each landowner or resident within the proposed District to estimate the maximum amount that such person will have to pay. Such special tax shall be utilized to pay directly for the facilities and services, to pay debt service on authorized bonds to assist in financing the acquisition of such facilities, to replenish any reserve fund established for such bonds, and to pay the costs of administering the bonds and the District. The special taxes herein authorized, to the extent possible, shall be collected in the same manneras 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. Under no circumstances will the special tax to be levied against any parcel used for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within the District by more than 10 percent. This legislative body further authorizes that special taxes may be prepaid and satisfied by payment of the prepayment amount calculated pursuant to the Special Tax Formula. Upon recordation of a Notice of Special Tax Lien pursuant to Section 3114.5 of the Streets and Highways Code of the State of California, a continuing lien to secure each levy of the special tax shall attach to all non-exempt real property in Resolution No. 00-235 Page 5 of 17 the District and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the tax by the legislative body ceases. SECTION 8: Preparation of Annual Tax Roll. The name, address and telephone number of the office, department or bureau which will be responsible for preparing annually a current roll of special tax levy obligations by Assessor's parcel number and which shall be responsible for estimating future special tax levies pursuant to Section 53340.1 of the Government Code of the State of California, are as follows: GIS/Special Districts Supervisor City of Rancho Cucamonga 10500 Civic Center Drive Rancho Cucamonga,CA 91729 (909)477-2700,Ext 2567 SECTION 9: Substitution Facilities. The description of the public facilities,as set forth above, is general in its nature. The final nature and location of such facilities will be determined upon the preparation of final plans and specifications therefor. Such final plans may show substitutes in lieu of, or modification to, the facilities described in Exhibit"A"and any such substitution shall not be a change or modification in the proceedings as long as the facilities serve a function substantially similar to the facilities described in Exhibit"A". SECTION 10: Election. This City Council herewith submits the levy of the special tax to the qualified electors of the District, such electors being the landowners in the District, with each landowner having one (1) voter for each acre or portion thereof of land which he or she owns within the District. This legislative body hereby further directs that the ballot proposition relating to the levy of the special tax be combined and consolidated with the proposition relating to the incurring of a bonded indebtedness. This Resolution shall not constitute the notice of the election, and the Resolution declaring the necessity to incur the bonded indebtedness shall constitute the notice of the election relating to the combined proposition on the authorization to incur a bonded indebtedness and authorization for the special tax levy and the proposition to establish an appropriations limit for the District. Resolution No. 00-235 Page 6 of 17 PASSED, APPROVED, AND ADOPTED this 151 day of November 2000. AYES: Alexander, Biane, Curatalo, Dutton, Williams NOES: None ABSENT: None ABSTAINED: None William J. Alexa er, Mayor ATTEST: Debra J. Adams, C, City Clerk 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 15' day of November 2000. Executed this 2nd day of November, at Rancho Cucamonga, California. s2i d4=!��Zqd Debra J. Adams, C ity Clerk Resolution No. 00-235 Page 7 of 17 Exhibit "A" Description of Public Facilities The types of public facilities proposed to be financed by the District shall include: Such street, sewer, water, storm drain, landscaping and park improvements within or serving or required as a condition of development of the District as are permitted to be financed by the District by the goals and policies of the City of Rancho Cucamonga regarding the use of the Mello-Roos Community Facilities Act of 1982. A-1 Resolution No. 00-235 Page 8 of 17 RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR COMMUNITY FACILITIES DISTRICT NO. 2000-01 (South Etiwanda) CITY OF RANCHO CUCAMONGA A Special Tax shall be applicable to each Parcel of Taxable Property located within the boundaries of Community Facilities District 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 hereinafter 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 Bernardino 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 CA.a. below. A-1 Resolution No. 00-235 Page 9 of 17 "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 CA.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, California. "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 Parcels of Taxable Property for which a building permit has been issued prior to March 1" preceding the Fiscal Year for which the Special Tax is being levied. "Exempt Property" means any Parcel or portion of a Parcel, which is exempt from Special Taxes pursuant to Section E. below. 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 Government Code Section 66410 et seq.) orthe 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 A-2 Resolution No. 00-235 Page 10 of 17 supplemented from time to time, and any instrument replacing or supplementing the same. "Land Use Category" means any of the categories 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 Parcel 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 that have been issued and not retired or defeased. "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 1 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. erty" means any Parcel within the boundary of the CFD which, as of January 1 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. A-3 Resolution No. 00-235 Page 11 of 17 "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 Owners 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. "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 Parcels 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 A-4 Resolution No. 00-235 Page 12 of 17 Developed Property, Public Property and/or Property Owner's Association Property that are not Exempt Property pursuant to the provisions of Section E. 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 pursuant to the provisions in Section E., and shall be subject to the levy of Special Taxes 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 Parcel. A-5 Resolution No. 00-235 Page 13 of 17 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. Assigned 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 District No. 2000-01 Assigned Taxable Special Tax Land Use Category Unit Residential Floor Area Per Taxable Unit 1 - Residential Property D/U 2,301 sq. ft. or greater $500 2 - Residential Property D/U 1,801 sq. ft. to 2,300 sq. $ 475 ft. 3 - Residential Property D/U 1,800 sq. ft. or less $425 4 - Non - Residential Property Acre N/A $3,700 b. Backup Special Tax When a Final Map is recorded the Backup Special Tax for the Parcels 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 A-6 Resolution No. 00-235 Page 14 of 17 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 Parcel 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; Third: If additional moneys are needed to satisfy 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 Special Tax is derived by the application of the Backup Special Tax shall be increased Proportionately 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 A-7 Resolution No. 00-235 Page 15 of 17 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 Owner's 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 Property Owner's Association Property 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 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. A-8 Resolution No. 00-235 Page 16 of 17 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 Assigned Special Tax and the Backup Special Tax for the Payoff Parcel 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 1 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. Step 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. Step4: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 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 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 Debt Service not yet paid for the current Calendar Yearto the date of bond redemption and all fees, call premiums, and expenses incurred by the City in connection with the prepayment A-9 Resolution No. 00-235 Page 17 of 17 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 prior 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. A-l0