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HomeMy WebLinkAbout00-149 - Resolutions RESOLUTION NO. 00-149 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, DECLARING ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2000-03 (RANCHO SUMMIT) AND TO AUTHORIZE THE LEVY OF A SPECIAL TAX THEREIN TO FINANCE THE PROVISIONS OF CERTAIN PUBLIC SERVICES AND THE ACQUISITION OF CERTAIN PUBLIC FACILITIES WHEREAS, the CITY COUNCIL of the CITY OF RANCHO CUCAMONGA, CALIFORNIA (the "City Council'), received a petition from the owners of certain property located within the City of Rancho Cucamonga identified as Tract No. 14759 requesting that the City Council initiate proceedings to consider the formation of 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') to finance the provision of certain public services and the acquisition of certain public facilities; and WHEREAS, pursuant to such petition the City Council desires to initiate proceedings to consider the formation of such community facilities district which shall hereinafter be referred to as COMMUNITY FACILITIES DISTRICT NO. 2000-03 (RANCHO SUMMIT) (the "District"); and, WHEREAS, this City Council is now required to proceed to adopt its Resolution of Intention to initiate the proceedings for the establishment of such District,to setforth the boundaries for such District, to indicate the type of public facilities and public services proposed to be financed by such District, to indicate the rate and apportionment of a special tax sufficient to finance the provision of such public services and the acquisition of such public facilities and the administration of the District and any indebtedness incurred by the District, to set a time and place for a public hearing relating to the establishment of such District; and WHEREAS, a map of such District has been submitted showing the boundaries of the territory proposed for inclusion in the District including properties and parcels of land proposed to be subject to the levy of a special tax by the District. SECTION 1: Recitals. The above recitals are all true and correct. SECTION 2: Initiation Of Proceedinas. These proceedings are initiated by this City Council pursuant to the authorization of Section 53318 of the Government Code of the State of California. SECTION 3: Boundaries Of District. It is the intention of this City Council to establish a Community Facilities District pursuant to the provisions of the Act, and to determine the boundaries and parcels on which special taxes may be levied to finance the provision of certain public services and the acquisition of certain public facilities. A description of the boundaries of the territory proposed for inclusion in the District including properties and parcels of land proposed to be subject to the levy of a special tax by the District is as follows: Resolution No. 00-149 Page 2 of 16 All that property as shown on a map as previously approved by this City Council,such map designated by the name of this Community Facilities District, a copy of which is on file in the Office of the City Clerk and shall remain open for public inspection. SECTION 4: Name Of District. The name of the proposed Community Facilities District to be established shall be known and designated as COMMUNITY FACILITIES DISTRICT NO. 2000-03 (RANCHO SUMMIT). SECTION 5: Description Of Public Facilities and Public Services. It is the further intention of this City Council to finance the acquisition of certain public facilities and the provision of certain public services. A general description of the type of public facilities to be acquired and the types of public services to be provided is set forth in Exhibit"A"attached hereto and incorporated herein by this reference. The types of facilities described in Exhibit "A" are facilities which this legislative body is authorized by law to contribute revenue to or to construct, own or operate. It is hereby further determined that the proposed public facilities and public services are necessary to meet increased demands and needs placed upon the City and other public agencies as a result of development within the District. The cost of acquiring such public facilities and providing such public services includes incidental expenses where applicable including, but not limited to, the costs of planning and designing such facilities; all costs associated with the establishment of the District, the issuance and administration of bonds, including the payment of any rebate obligation due and owing to the federal government,the determination of the amount of any special taxes to be levied, the costs of collecting any special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the District, together with any other expenses incidental to the acquisition, construction, completion and inspection of such facilities. SECTION 6: Special Tax. It is hereby further proposed that, except where funds are otherwise available, a special tax sufficient to pay for such public services and such public facilities and related incidental expenses authorized by the Act, secured by recordation of a continuing lien against all non-exempt real property in the District, will be levied annually within the Resolution No. 00-149 Page 3 of 16 boundaries of such District. Under no circumstances will the special tax to pay for such public facilities 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. For further particulars as to the rate and method of apportionment of the proposed special tax, reference is made to the attached and incorporated Exhibit"B",which sets forth in sufficient detail the method of apportionment to allow each landowner or resident within the proposed District to clearly estimate the maximum amount that such person will have to pay. 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 valorem taxes. Any special taxes that may not be collected on the County tax roll shall be collected through a direct billing procedure by the Treasurer. SECTION 7: Public Hearing. NOTICE IS GIVEN THAT ON THE 20TH DAY OF SEPTEMBER, 2000, AT THE HOUR OF 7:00 O'CLOCK P.M., IN THE REGULAR MEETING PLACE OF THE CITY COUNCIL BEING THE COUNCIL CHAMBERS, CITY HALL, LOCATED AT 10500 CIVIC CENTER DRIVE, RANCHO CUCAMONGA, CALIFORNIA, A PUBLIC HEARING WILL BE HELD WHERE THIS CITY COUNCIL WILL CONSIDER THE ESTABLISHMENT OF THE PROPOSED COMMUNITY FACILITIES DISTRICT, THE PROPOSED METHOD AND APPORTIONMENT OF THE SPECIAL TAX, AND ALL OTHER MATTERS AS SET FORTH IN THIS RESOLUTION OF INTENTION. THAT AT THE ABOVE-MENTIONED TIME AND PLACE FOR PUBLIC HEARING ANY PERSONS INTERESTED, INCLUDING TAXPAYERS AND PROPERTY OWNERS MAY APPEAR AND BE HEARD,AND THAT THE TESTIMONY OF ALL INTERESTED PERSONS FOR OR AGAINST THE ESTABLISHMENT OF THE DISTRICT,THE EXTENT OF THE DISTRICT,OR THE FINANCING OF THE PUBLIC SERVICES AND PUBLIC FACILITIES, WILL BE HEARD AND CONSIDERED. ANY PROTESTS MAY BE MADE ORALLY OR IN WRITING. HOWEVER, ANY PROTESTS PERTAINING TO THE REGULARITY OR SUFFICIENCY OF THE PROCEEDINGS SHALL BE IN WRITING AND CLEARLY SET FORTH THE IRREGULARITIES AND DEFECTS TO WHICH THE OBJECTION IS MADE. ALL WRITTEN PROTESTS SHALL BE FILED WITH THE CITY CLERK OF THE CITY COUNCIL Resolution No. 00-149 Page 4 of 16 ON OR BEFORE THE TIME FIXED FOR THE PUBLIC HEARING. WRITTEN PROTESTS MAY BE WITHDRAWN IN WRITING AT ANY TIME BEFORE THE CONCLUSION OF THE PUBLIC HEARING. IF A WRITTEN MAJORITY PROTEST AGAINST THE ESTABLISHMENT OF THE DISTRICT IS FILED, THE PROCEEDINGS SHALL BE ABANDONED. IF SUCH MAJORITY PROTEST IS LIMITED TO CERTAIN SERVICES OR FACILITIES OR PORTIONS OF THE SPECIAL TAX, THOSE SERVICES OR FACILITIES OR THAT TAX SHALL BE ELIMINATED BY THE CITY COUNCIL. SECTION 8: Election. If, following the public hearing described in the Section above, the City Council determines to establish the District and proposes to levy a special tax within the District, the City Council shall then submit the levy of the special taxes to the qualified electors of the District. If at least twelve (12) persons, who need not necessarily be the same twelve (12) persons, have been registered to vote within the District for each of the ninety(90)days preceding the close of the public hearing, the vote shall be by registered voters of the District, with each voter having one(1)vote. Otherwise,the vote shall be by the landowners of the District who were the owners of record at the close of the subject hearing, with each landowners or the authorized representative thereof, having one (1)vote for each acre or portion of an acre of land owned within the District. SECTION 9: Notice. Notice of the time and place of the public hearing shall be given by the City Clerk by causing the publication of a Notice of Public Hearing in the legally designated newspaper of general circulation,such publication pursuant to Section 6061 of the Government Code, with such publication to be completed at least seven (7)days prior to the date set for the public hearing. SECTION 10: Reservation Of Rights To Authorize Tender Of Bonds. The City Council reserves to itself, in its capacity as the legislative body of the District if formed, the right and authority to allow any interested owner of property within the District, subject to the provisions of Government Code Section 53344.1 and to such conditions as this City Council may impose, and any applicable prepayment penalties as may be described in the bond indenture or comparable instrument or Resolution No. 00-149 Page 5 of 16 document, to tender to the Treasurer of the City of Rancho Cucamonga, acting for and on behalf of the District, in full payment or part payment of any installment of the special taxes or the interest or penalties thereon which may be due or delinquent, but for which a bill has been received, any bond or other obligation secured thereby, the bond or other obligation to be taken at par and credit to be given for the accrued interest shown thereby computed to the date of tender. SECTION 11: Advances Of Funds Or Work-In-Kind. At any time either before or after the formation of the District, the City Council may accept advances of funds or work-in- kind from any source, including, but not limited to, private persons or private entities and may provide, by resolution,for the use of those funds or that work-in-kind for any authorized purpose, including, but not limited to, paying any cost incurred by the City in creating the District. The City may enter into an agreement, by resolution, with the person or entity advancing the funds or work-in-kind, to repay all or a portion of the funds so advanced, or to reimburse the person or entity for the value, or cost,whichever is less, of the work- in-kind, as determined by the City Council. The City has entered into a Community Facilities District Reimbursement Agreement with Rancho Summit, LLC to provide for such advances for the payment of all initial consulting and administration costs and expenses related to the proceedings to consider the formation of the District and to subsequently authorize, issue and sell bonds for the District. Such advances are subject to reimbursement pursuant to the terms of such agreement. No such agreement shall constitute a debt or liability of the City. PASSED, APPROVED,AND ADOPTED this 16`h day of August 2000. AYES: Alexander, Biane, Curatalo, Dutton, Williams NOES: None ABSENT: None ABSTAINED: None William J. Ales nder, Mayor Resolution No. 00-149 Page 6 of 16 ATTEST: aa-�- / e ra J. Adam MC, 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 16`h day of August 2000. Executed this 17th day of August, at Rancho Cucamonga, California. AaJ4sC, CityClerk Resolution No. 00-149 Page 7 of 16 Exhibit "A" Description of Public Facilities and Public Services The types of public facilities proposed to be financed by the District shall include: Park improvements to three (3) parks to be located within the District including cleaning and grading of such park sites, park hardscape and restrooms; street improvements; and parkway hardscape. The types of public services proposed to be financed by the District shall include: Parks and parkways. A-1 Resolution No. 00-149 Page 8 of 16 EXHIBIT "B" RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX 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 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 herein 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 Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other 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 B-1 Resolution No. 00-149 Page 9 of 16 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. "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 III 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. B-2 Resolution No. 00-149 Page 10 of 16 "Fiscal Year" means the period starting 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 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 Ill. "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. B-3 Resolution No. 00-149 Page 11 of 16 "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 Property assigned to one of Land Use Classes 1 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 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 classifiecl.as Developed Property. B-4 Resolution No. 00-149 Page 12 of 16 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 III below. III. MAXIMUM SPECIAL TAX RATES 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 1 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. TABLE 1 Land Use Residential Assigned Facilities Class Floor Area Special Tax 1 <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 1,259.00 per unit above 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 B-5 Resolution No. 00-149 Page 13 of 16 $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 Property 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 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; B-6 Resolution No. 00-149 Page 14 of 16 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 Property; 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; 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: B-7 Resolution No. 00-149 Page 15 of 16 • 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.1: 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. Step AA: 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 B-8 Resolution No. 00-149 Page 16 of 16 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. B-9