CC Resolution 1995-073^!I` RESOLUTION NO.95- 73
RESOLUTION OF INTENTION OF THE CITY COUNCIL
OF THE CITY OF LA QUINTA TO ESTABLISH
COMMUNITY FACILITIES DISTRICT NO.95-i OF THE
CITY OF LA QUINTA, TO AUTHORIZE THE LEVY OF A
SPECIAL TAX TO PAY THE COST OF CONSTRUCTING
CERTAIN FACILITIES AND EXPENSES OF THE DISTRICT
AND TO PAY DEBT SERVICE ON BONDED
INDEBTEDNESS
WHEREAS, on October 17, 1995, the City received a petition signed by the owner of all
of the land within the boundaries of the territory which is proposed for inclusion in a proposed
community facilities district which meets the requir*ments of Sections 53318 and 53319 of the
Government Code of the State of California; and
WHEREAS, the City Council desires to adopt this resolution of intention as provided in
Section 53321 of the Government Code of the State of California to establish a community
facilities district consisting of the territory described in Exhibit A" hereto and incorporated
herein by this reference, which the City Council hereby determines shall be known as
Community Facilities District No.95-i of the City of La Quinta" the Community Facilities
District No. 95-1" or the District") pursuant to die Mel lo-Roos Community Facilities Act of
1982, as amended, commencing with Section 53311 of the Government Code the Act") to
finance 1) the purchase, construction, expansion, improvement or rehabilitation of certain real or
other tangible properly described in Exhibit B" hereto and incorporated herein by this reference
to serve the area located within Community Facilities District No.95-i, including all furnishings,
equipment and supplies related thereto collectively, the Facilities"), which Facilities have a
useful life of five years or longer, and 2) the incidental expenses to be incurred in connection
with financing the Facilities, forming and administering the District the Incidental Expenses");
and
WHEREAS, the City Council further intends to approve an estimate of the costs of the
Facilities and the Incidental Expenses for Community Facilities District No.95-I; and
WHEREAS, it is the intention of the City Council to consider financing the Facilities and
the Incidental Expenses through the formation of Community Facilities District No.95-i and the
sale of bonds in an amount not to exceed $12,000,000 the Obligations") and the levy of a
special tax to pay for the Facilities and the Incidental Expenses and to pay debt service on the
bonded indebtedness, provided that the bond sale and special tax levy are approved at an election
to be held within the boundaries of Community Facilities District No.95-i; and
THE CITY COUNCIL OF THE CITY OF LA QUINTA HEREBY FINDS,
DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS:
Section 1. The above recitals are true and correct.
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Section 2. A community facilities district is proposed to be established under the
terms of the Act. It is flirther proposed that the boundaries of the community facilities district
shall be the legal boundaries as described in Exhibit A" hereto, which boundaries shall, upon
recordation of the boundary map for the District, include the entirety of any parcel subject to
taxation by the District, and as depicted on the map of the proposed Community Facilities
District No.95-i which is on file with the City Clerk. The City Clerk is hereby directed to sign
the original map of the District and record it with all proper endorsements thereon with the
County Recorder of the County of Riverside within 15 days after the adoption of this resolution,
all as required by Section 3111 of the Streets and Highways Code of the State of California.
Section 3. The name of the proposed Community Facilities District shall be
Community Facilities District No.95-i of the City of La Quinta".
Section 4. The Facilities proposed to be provided within Community Facilities
District No.95-i are public facilities as defined in the Act, which the City and the District are
authorized by law to construct, acquire, own and operate. The City Council hereby finds and
determines that the description of the Facilities herein is sufficiently informative to allow
taxpayers within the proposed District to understand what the funds of the District may be used
to finance. The Incidental Expenses expected to be incurred include the cost of planning and
designing the Facilities, the costs of forming the District issuing bonds and levying and collecting
a special tax within the proposed District. The City Council hereby finds that the proposed
Facilities are necessary to meet increased demands placed upon the City as a result of
development occurring in the District.
Section 5. Except where flinds are otherwise available, it is the intention of the City
Council to levy annually in accordance with the procedures contained in the Act a special tax,
secured by recordation of a continuing lien against all nonexempt real property in the District,
sufficient to pay for: i) the Facilities and Incidental Expenses; and ii) the principal and interest
and other periodic costs on bonds or other indebtedness issued to finance the Facilities and
Incidental Expenses, including the establishment and replenishment of any reserve flinds deemed
necessary by the District, any remarketing, credit enhancement and liquidity facility fees
including such fees for instruments which serve as the basis of a reserve flind in lieu of cash).
The rate and method of apportionment and manner of collection of the special tax are described
in detail in Exhibit C" attached hereto, which Exhibit C" is incorporated herein by this
reference. Exhibit C" allows each landowner within the District to estimate the maximum
amount that may be levied against each parcel. In the first year in which such special tax is
levied, the levy shall include an amount sufficient to repay to the City all amounts, if any,
transferred to the District pursuant to Section 53314 of the Act and interest thereon.
If special taxes of the District are levied against any parcel used for private residential
purposes, i) the maximum special tax rate shall not be increased over time except that it may be
increased by an amount not to exceed two percent per year, ii) such tax shall not be levied or
collected after the 2046-2047 tax year, and iii) under no circumstances will such special tax be
increased as a consequence of delinquency or default by the owner of any other parcel or parcels
within the District by more than ten percent.
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The special tax is based on the expected demand that each parcel of real property within
proposed Community Facilities District No.95-i will place on the Facilities and on the benefit
that each parcel derives from the right to access the Facilities. The City Council hereby
determines the rate and method of apportionment of the special tax set forth in Exhibit C" to be
reasonable. The special tax is apportioned to each parcel on the foregoing basis pursuant to
Section 53325.3 of the Act and such special tax is not on or based upon the value or ownership
of real property. In the event that a portion of the property within Community Facilities District
No.95-i shall become for any reason exempt, wholly or partially, from the levy of the special
tax specified on Exhibit C", the City Council shall, on behalf of Community Facilities District
No.95-i, cause the levy to be increased, subject to the limitation of the maximum special tax for
a parcel as set forth in Exhibit C", to the extent necessary upon the remaining property within
proposed Community Facilities District No.95-i which is not delinquent or exempt in order to
yield the special tax revenues required for the purposes described in this Section 5. Conditions
under which the obligation to pay special taxes may be prepaid and permanently satisfied are set
forth in Exhibit C" hereto.
Section 6. A public hearing the Hearing") on the establishment of the proposed
Community Facilities District No.95-i, the proposed rate and method of apportionment of the
special tax and the proposed issuance of bonds to finance the Facilities and the Incidental
Expenses shall be held at 7:00 p.m., or as soon thereafter as practicable, on November 21, 1995,
at the City Council Chambers, City Hall, 78495 Calle Tampico, Ya Quinta, California. Should
the City Council determine to form the District, a special election will be held to authorize the
issuance of the bonds and the levy of the special tax in accordance with the procedures contained
in Government Code Section 53326. If held, the proposed voting procedure at the election will
be a landowner vote with each landowner who is the owner of record of land within the District
at the close of the Hearing, or the authorized representative thereof, having one vote for each
acre or portion thereof owned within the proposed District. Ballots for the special election may
be distributed by mail or by personal service.
Section 7. At the time and place set forth above for the Hearing, the City Council
will receive testimony as to whether the proposed Community Facilities District No.95-i shall be
established and as to the method of apportionment of the special tax and shall consider:
a) if an ad valorem property tax is currently being levied on property within
proposed Community Facilities District No.95-i for the exclusive purpose of paying principal of
or interest on bonds, lease payments or other indebtedness incurred to finance construction of
capital facilities; and
1)) if the capital facilities to be financed and constructed by Community Facilities
District No.95-i will provide the same services as were provided by the capital facilities
mentioned in subsection a); and
c) if the City Council makes the findings specified in subsections a) and *) above,
it will consider appropriate action to determine that the total annual amount of ad valorem
property tax revenue due from parcels within Community Facilities District No.95-i, for
purposes of paying principal and interest on the debt identified in subsection a) above, shall not
be increased after the date on which Community Facilities District No.95-i is created, or after a
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later date determined by the City Council with the concurrence of the legislative body which
levied the property tax in question.
Section 8. At the time and place set forth above for the Hearing, any interested
person, including all persons owning lands or registered to vote within proposed Community
Facilities District No.95-i, may appear and be heard.
Section 9. Each City officer*who is or will be responsible for providing the Facilities
within proposed Community Facilities District No.95-i, if it is established, is hereby directed to
study the proposed District and, at or before the time of the above-mentioned Hearing, file a
report with the City Council containing a brief description of the public facilities by type which
will in his or her opinion be required to meet adequately the needs of Community Facilities
District No.95-i and an estimate of the cost of providing those public facilities, including the
cost of environmental evaluations of such facilities and an estimate of the fair and reasonable cost
of any Incidental Expenses to be incurred.
Section 10. The City may accept advances of flinds or work-in-kind from any source,
including, but not limited to, private persons or private entities, for any authorized purpose,
including, but not limited to, paying any cost incurred by the City in creating Community
Facilities District No.95-i. The City may enter into an agreement with the person or entity
advancing the flinds or work-in-kind, to repay all or a portion of the flinds 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, with or without interest.
Section 11. The City Clerk is hereby directed to publish a notice the Notice*) of the
Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation
published in the area of proposed Community Facilities District No.95-i. The City Clerk is
flirther directed to mail a copy of the Notice to each of the landowners within the boundaries of
the District at least 15 days prior to the Hearing. The Notice shall contain the text or a summary
of this Resolution, the time and place of the Hearing, a statement that the testimony of all
interested persons or taxpayers will be heard, a description of the protest rights of the registered
voters and landowners in the proposed district and a description of the proposed voting procedure
for the election required by the Act. Such publication shall be completed at least seven 7) days
prior to the date of the Hearing.
Section 12. The reasonably expected maximum principal amount of the Obligations is
Twelve Million Dollars.
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^!I` Section 13 All the recitals in this Resolution are true and correct and this City
Council so finds, determines, and represents.
PASSED, APPROVED and ADOPTED this 17th day of October, 1995 by the following
vote:
AYES: Council Members Bangerter, Cathcart, Perkins, Sniff, Mayor Pena
NOES: None
ABSENT: None
ABSTAIN: None
*.PA,Mar*'
City of La Quinta, California
City of La Quinta, California
APPROVED AS TO FORM:
4 *ity' *
DAWN HONEYWELL,*' Attorney
City of La Quinta, California
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^!I` EXRIBIT A
T
1.
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EXHIBIT B
Types of Facilities
to Be Financed by Community
Facilities District No.95-i
The proposed public facilities include:
the construction, purchase, modification, expansion, improvement or rehabilitation
of water facilities, sanitary sewers, streets, storm drainage facilities, utilities,
parks, landscaping, and other infrastructure improvements and relocations,
including traffic signalization and improvements to street intersections the
Facilities"); and
2. to finance the incidental expenses to be incurred, including:
a) the cost of engineering, planning and designing the Facilities;
1)) all costs associated with the creation of the District, the issuance of the
bonds, the determination of the amount of special taxes to be levied, costs
otherwise incurred in order to carry out the authorized purposes of the
District and administering the District collectively, the Incidental
Expenses").
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^!I` I. I L I * * I * I
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
FOR CITY OF LA QUINTA
COMMUNITY FACILITIES DISTRICT NO.95-i
A special tax shall be levied on and collected in the City of * Quinta Community Facilities
District No.95-i *ista Santa Rosa)("CFD No.95-i") each Fiscal Year, in an amount determined
through the application of the rate and method of apportionment described below. All of the
property in CFD No.95-i, unless exempted by law or by the provisions hereof, shall be taxed
for the purposes, to the extent and in the manner herein provided.
A. DEFINmQN*
The terms hereinafter set forth have the following meanings:
Acre or Acreage" means the land area of an Assessor's Pa!Cel 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 fmal map, parcel map, condominium plan, or other recorded
parcel map.
Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being
Chapter 2.5, Division 2 of Tide 5 of the Government Code of the State of California.
Administrative Expenses" means the following actual or reasonably estimated costs
dirertly related to the adrnin*tion of CFD No.95-i: the costs of computing the Special
Taxes and preparing the annual Special Tax collection schedules; the costs of collecting
the Special Taxes; the costs of remitting the Special Taxes to the Fiscal Agent; the costs
of the Fiscal Agent including its legal counsel) in the discharge of the duties requieed of
it under the Fiscal Agent Agreement; the costs of the City or its designee of complying
with disclosure requirements of applicable federal and state securities laws and of the Act,
including public inquiries regarding the Special Taxes; the costs of the City or its designee
releted to any appeal or legal action related to the Special Taxes; costs associated with the
release of flinds from an escrow account; and an allocable share of the salaries of the City
staff and City overhead direcdy related to the foregoing. Administrative Expenses shall
also include amounts advanced by the City for any other administrative purposes of the
CFD No.95-i, including the costs releted to the prepayment of Special Taxes, recordings
related to such prepayment and satisfaction of Special Taxes, and the costs of pursuing
foreclosure in respect of delinquent Special Taxes.
1ApartmeDt Property" means all Assessor's Parcels of Residential Property for which a
building permit has been issued for building a structure comprised of attached residential
units, all of which are made available for rental, but not purchase, by the general public.
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City of La Quinta
CF') No.95-I
Page 2
Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an
assigned Assessor's Parcel number.
Assessor's Parcel Map" means an official map of the County Assessor of the County of
Riverside designating parcels by Assessorts Parcel number.
Assigned Special Tax11 means the Special Tax for each Land Use Class, as determined
by reference to Table 1 of Section C below.
Backup Special Tax" means the Special Tax applicable to each Assessor's Parcel of
Developed Property as determined in accordance with Secfion C below.
Bonds" means any bonds or other debt as defmed in Section 53317(d) of the Act),
whether in one or more series, issued by the City for CFD No.95-i under the Act.
Building Square Footage" means, for any Assessor's Parcel of Residential Property, the
square footage of living area listed on the building permit(s) issued for such Assessor's
Parcel, exclusive of garages or other structures which are not used as living spaces.
City" means the City of La Quinta.
City Manager" means the City Manager of the City or hisiher designee.
Commercial Property" means all Assessor's Parcels of Non-Residential Property.
Council" means the City Council of the City of La Quinta, acting as the legislative body
of CFD No.95-i.
County" means the County of Riverside.
Developed Property" means, for any Fiscal Year, all Assessor's Parcels of Taxable
Property for which a building permit has been issued as of March 1 of the prior Fiscal
Year, exclusive of Taxable Property Owner Association Property and Public Property.
Fiscal Agent" means the entity acting as Fiscal Agent under the Fiscal Agent Agreement.
Fiscal Agent Agreement" means the agreement by that name between the City and the
Fiscal Agent purauant to which the Bonds are issued, including any amendment thereof or
supplement thereto.
Fiscal Year" means the period strting 3uly 1 and ending on the following June 30.
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City of La Quinta
CFbNo.9*l
Page 3
Gross Floor Area" means the covered and enclosed space determined to be within the
perimeter of a non-residential structure, not including any storage areas incidental to the
principal use of the development, garage, parking structure, unenclosed walkway, or
utllity or disposal aeea. *The amount of chargeable covered and enclosed space within the
perimeter of a commercial or industrial structure shall be based on the building permit
issued for the structure.
tlnflation Index" means the annual percentage change in the Engineering News-Record
Building Cost Index for the City of Is Angeles, measured as of the calendar year ending
in the previous Fiscal Year. In the event this index ceases to be published, the Inflation
Index shall be another index as determined by the City Manager that is reasonably
comparable to the Engineering News-Record Building Cost Index for the City of Ii)s
Angeles.
Initial Assigned Special Tax" means the Assigned Special Tax for an Assessor's Parcel
for the first Fiscal Year following its designation as Developed Property.
Land Use Class" means any of the classes listed in Table 1 below.
Maximum Special Tax" means the maxinum Special Tax, determined in accordance
with Section C, that can be levied by CFD No.95-i in any Fiscal Year for Undeveloped
Property, each land Use Class of Developed Property, Taxable Property Owner
Association Property and Taxable Public Property, as applicable.
Non-Residential Property" means all Assessor's Parcels of Developed Property for
which the building permit was issued for purposes of constructing a non-residential
structure(s).
11Property Owner Association Property" means, for any Fiscal Year, all Assessor's
Parcels within the boundaries of CFD No.95-i owned by a property owner association
as of March 1 of the prior Fiscal Year.
Public Property" means any property within the boundaries of CFD No.95-1 that is
owned by the federal government, State of California or other governmental agency.
Residential Property" meansall Assessor's Parcels of Developed Property for which the
building permit was issued for purposes of constructing a residential dwelling unit(s),
including Apartment Property, Single Family Attached Property, and Single Family
Detached Property.
Single Family Attached Property" meansall Assessor's Parcels of Residential Property,
other than Apartment Property, for which a building permit has been issued for purposes
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City of La Quinta
CF])N*9*1
Page 4
of constructing a residential structure made up of two or more units that share common
walls.
Single Family Detached Property" means all Assessor's Parcels of Residential Property
for which a building permit has been issued for purposes of constructing a detached
residential dwelling unit.
Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor's
Parcel of Developed Property, Undeveloped Property, and Taxable Property Owner
Association Property and Taxable Public Property to fund the Special Tax Requirement.
Special Tax Requirement" means that amount required in any*Fiscal Year for CFD No.
93-1 to: 1) pay debt service on all outstanding Bonds of CPD No.95-i, or other periodic
costs on the Bonds, 2) pay the Administrative Expenses, 3) accumulate funds to pay
direcdy for authorized facilities to the extent that doing so does not cause the Special Tax
to be levied on any Assessor's Parcel of Undeveloped Property to increase by more than
$100 per acre annually over the Special Tax that would have been levied if no funds were
accumulated to pay dieecfly for authorized facilities, 4) pay costs associated with the
release of funds from an escrow account if any, 5) pay any amounts required to establish
or replenish any reserve funds for any outstanding Bonds for CFD No.95-i, 6) pay any
amounts determined by the City Manager necessary to make rebate payments to the federal
government, and 7) pay for anticipated delinquent special taxes such delinquent special
taxes shall be estimated based on the delinquency rate in the CFD for the previous Fiscal
Year.)
Taxable Property'1 means all of the Assessor's Parcels within the boundaries of CFD
No.95-i which are not exempt from the Special Tax pursuant to law or Section E below.
Taxable Property Owner Association Property" means all Assessor's Parcels of
Pooperty Owner Association Property which have not been exempted pursuant to Section
E.
Taxable Publlc Property' means all Public Property which has not been exempted
pursuant to Section E below.
Undeveloped Property" means, for any Fiscal Year, all Assessor's Parcels of Taxable
Property not classified as Developed Property, Taxable Property Owner Association
Property or Taxable Public Property as of March 1 of the prior Fiscal Year.
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City of La Qilinta
CFD No. 9*l
Page 5
B.
For each Fiscal Year, all Taxable Property within CFD No.95-i shall be classified as
Developed Property, Undeveloped Property, Taxable Property Owner Association
Pz**rty or Taxable Public Property, and shall be subject to the Special Tax in accordance
with the rate and method of apportionment determined pursuant to Sections C and D
below.
For purposes of determining the applicable Assigned Special Tax for each Assessorts
Parcel of Developed Property, all Developed Property shall be assigned to one of the land
Use Classes designated in Table 1 b*ow. Sin*e Family Detached Property shall be
assigned to Land Use Classes 1 through 4 based on Building Square Footage. Single
Fainily Attached Property shall be assigned to land Use Classes 5 and 6 based on Building
Square Footage. Apartment units shall be assigned to Land Use Class 7. Non-Residential
Property shall be assigned to Land Use Class 8.
C. *
1. Developed Property
a. Maximum Special Tax
The Matirnum Special Tax for each Assessor* 5 Parcel classified as Developed
Property shall be the greater of i) the amount derived by application of the Backup
Special Tax or il) the amount derived by application of the Assigned Special Tax.
b. Initial Assigned Special Taxes
The Fiscal Year 1995-96 Initial Assigned Special Tax for each land Use Class is
shown below in Table 1.
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City of La Quinta
CFD No. 9*1
Page 6
Initial Assigned Special Taxes for Developed Property in
Comunity Facillties District No.95-i *iscal Year 1995-96)
I *FY1995-96
Building Square Assigned Special
Class Description Footage Tax
1 Single Family Detached Property * 2,500 sq. ft. $1,108 per umt
2 Single Family Detached Property 2,000 2499 sq. ft. $895 per umt
3 Single Family Detached Property 1,500 1999 sq. ft. $696 per unit
4 Single Family Detached Property 1,500 sq. ft. $517 er unit
5 Single Family Attached Property * 1,200 sq. ft. $517 per unit
6 Single Family Attached Property 1,200 sq. ft. $358 per unit
7 Apartment Property NA $358 per unit
8 Non-Residential Pro*ertv NA $3*490 *er acre
c. Increases in the Initial Assigned Special Tax
The Initial Assigned Special Tax in Table 1 shall be applicable for Fiscal
Year 1995-96, and until it becomes Developed Property shall be increased
annually each July 1, commencing on July 1, 1996, according to the
Inflation Index, with a maximum annual increase of four percent 4.00%)
and a mInImum annual increase of two percent 2.00%). The increase in
the Assigned Special Tax for Assessor's Parcels after it becomes Developed
Property shall be two percent 2.00%) per year.
d. Multiple land Use Classes
In some instances an Assessor's Parcel of Developed Property may contain
both Residential Property and Non-Residential Property. The Assigned
Special Tax for such an Assessor's Parcel shall be the summation of the
Assigned Special Taxes for both the Residential Property and Non-
Residential Property located on that Assessor's Parcel. For pu*poses of
computing the Assigned Special Tax for Non-Residential Property, the
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City of La Quinta
CF') No.95-i
Page 7
acreage of the portion of the Assessor's P*cel allocated to Non-Residential
Pn**rty shall be determined based on the ratio of the Gross Floor Area of
the Non-Residential Property to the sum of the Gross Floor Area and
Building Square Footage located on the Assessor's Parcel.
e. Backup Special Tax
The Backup Special Tax shall be the lessei of
i) $O.08017 per square foot of Assessor's Parcel, or
il) the amount calculated with each issuance of Bonds pursuant to the
following formula:
Sxl.1) +AB-AT\ +*AxO.85)
Where the terms used in the formula have the following meaning:
DS The highest discounted annual debt service on outstanding
Bonds, using a discount rate of two percent and discounting
to the Fiscal Year in which any series of Bonds are issued.
AE= Administrative Expenses for the most recent Fiscal Year.
AT= The total of Assigned Special Taxes that can be collected
from parcels of Developed PPp*rty as of the date any series
of Bonds are actually issued.
TA The anticipated Acreage of Developed Property in square
feet) at full buildout of CPD No. 95-1, excluding the
taxable Acreage of parcels that are Developed Property as
of the date the last series of Bonds was actually issued,
determined by reference to Attachment A, by the City
Manager the City Manager may request a certitication as to
the Acreage for purposes of this calculation from engineers
involved in any projects proposed for or under development
withih CFD No.95-i).
The Backup Special Tax shall be applied to the Acreage of each Assessor's
Parcel measured in square feet. The land area applicable to a Single
Family Attached Property or Aparttnent, shall be computed from the
Acreage of the lot on which the Single Family Attached Property or
Apartment dwelling unit is located, with the Acreage for such lot divided
equally among all of the dwelling units located on such lot.
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CFDNo.9*1
Page 3
If an Assessor's Parcel of Developed Property contains both Residential
Property and Non-Residential Property, the land area allocated to
Residential Property shall be determined based on the ratio of the Building
Square Footage of the Residential Property to the total Gross Floor Area
and Building Square Footage located on the Assessor's Parcel. The land
area ailocted to Non-Residential Property shall be determined based on the
ratio of the Gross Floor Area of the Non-Residential Property to the total
Gross Floor Area and Building Square Footage located on the Assessor's
Parcel.
f. Increase in the Backup Special Tax
The Backup Special Tax detertnined purauant to Section C.e. i) above shall
be applicable for Fiscal Year 1995-96 and shall increase by two percent
2 %) annually each Fiscal Year thereafter. The Backup Special Tax
determined pursuant to Section C.e. li) above shall be applicable starting
in the Fiscal Year in which any series of Bonds are actually issued and shall
increase by two percent 2%) annually thereafter. The Backup Special Tax
on an Assessor's Parcel of Developed Property shall increase by two
percent 2%) each Fiscal Year and shall not increase as a result of Bonds
issued subsequent to the date a building permit is issued with respect to
such Assessor's Par*l.
2. Undeveloped Property, Taxable Property Owner Association Property and
Taxable PLIbllc Property
a. Maximum Special Tax
The Maxanum Special Tax for Undeveloped Property shall be $3,490 per
acre or fraction thereof for Fiscal Year 1995-96.
The Maximum Special Tax for Taxable Property Owner Association
Property or Taxable Public Property shall be $3,490 per acre or fraction
thereof for Fiscal Year 1995-96.
b. Increases in the Maximum Special Tax
On each July 1, commencing July 1, 1996, the Maximum Special Tax for
Undeveloped Property, Taxable Property Owner Association Property, and
Taxable Public Property shall be increased by two percent 2.00%) of the
amount in effect in the previous Fiscal Year.
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D.
Commencing with Fiscal Year 1996-97 and for each following Fiscal Year, and prior to
the fmal date on which the County Auditor wrn accept the levy for inclusion on the ad
valorem raal pr*erty tax roll for such Fiscal Year, the City Manager shall determine the
Special Tax Requirement to be collected from Taxable Property in CFD No. 95*1 in such
Fiscal Year. The Special Tax shall be levied as follows until the amount of the levy equals
the Special Tax Requir*ment, subject to the limitations specified herein and in the final
paragraph of Section 53321(d) of the Act.
* The Special Tax shall be levied in equal percentages on each Assessor's Parcel of
Developed Property up to 100% of the applicable Assigned Special Tax for such
Assessor's Parcel;
Second: if additional monies are needed after the first step has been completed, the
Special Tax shall be levied in eqaal percentages on each Assessor's Parcel of Undeveloped
Property, up to 100% of the Maximum Special Tax for Undeveloped Property;
IIi*: if additional monies are needed after the first two Steps have been completed, then
the levy of the Special Tax on each Assessor's Parcel of Developed Property whose
Maximum Special Tax is determined through the application of the Backup Special Tax
shall be increaed in eaaal percentages from the Assigned Special Tax up to the Maximum
Special Tax for each such Assessor's Parcel; and
Fou*h'. if additional monies are needed after the first three steps have been completed,
then the Special Tax shall be levied in equal percentages on each Assessor's Parcel of
Taxable Property Owner Association Property and Taxable Public Property up to the
Maximum Special Tax for Taxable Property Owner Association Property and Taxable
Public Property.
E. EXEMPii()***
The Council shall not levy a Special Tax on the following:
1) Up to a total of 22.3 acres of Public Ppp:erty, except as otherwise provided
in Sections 53317.3, 53317.5, and 53340.1 of the Act; and
2) Up to a total of 10.1 acres of Property Owner Association Property.
All such property wrn be irrevocably allocated by the City Manager on a first in fime
basis. if the total number of acres of land conveyed exeeeds the amount stated above, then
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the acres exceeding such total shall be taxed at the applicable rate set forth in Section C.2
above and to the extent set forth in Section D above.
F. *
The Special Tax will be collected in the same manner and at the same time as ordinary ad
valorem property taxes; provided, however, that prepayments are permitted as set forth
in Sections G and H below and provided further that CFD No.95-i may direcfly bill the
Special Tax, may collect Special Taxes at a different time or in a different manner if
neeessaay to meet its financial obligations, and may covenant to foreclose and may actually
foreclose on delinquent parcels as permitted by the Act.
G. *
The following definitions apply to this Section G:
Future Facilities Costs" means the difference between the Public Facilities Requirements
and the dollar amount deposited to the Construction Fund from the proceeds of Previously
Issued Bonds plus the dollar amount of public facility costs funded by interest earnings on
the Construction Fund established in the Fiscal Agent Agreement actually earned prior to
the date of prepayment plus the dollar amount of public facility costs funded directly with
Special Taxes prior to the date of prepayment.
Outstanding Bonds" means all Previously Issued Bonds which remain outstanding.
Previously *sued Bonds" means all Bonds that have been issued by CFD No.95-i prior
to the date of prepayment.
Public Facmties Requirements" means $7,183,088 in 1995 dollars, which shall increase
by the Inflation Index on July 1, 1996, and on each July 1 thereafter, or such lower
number as i) shall be determined by the City Manager to be sufficient to provide the
public facilities to be provided by CFD No.95-i, or il) shall be determined by the City
Manager concurrently with the adoption of a covenant that CFD No.95-i will not issue
any additional Bonds not including refunding bonds) to be supported by Special Taxes
levied under this Rate and Method of Apportionment for CFD No. 95-i as described in
Section D.
The CFD No. 95-i Special Tax obligation for an Assessor's Parcel of Developed Property
or an Assessor's Parcel of Undeveloped Property for which a building permit has already
been issued may be prepaid and the obligation of the Assessor's Parcel to pay the Special
Tax permanently satisfied as described herein, provided that a prepayment may be made
only if there are no delinquent Special Taxes with respect to such Assessor's Parcel at the
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time of prepayment. An owner of an Assessor's Parcel intending to prepay the Special
Tax obligation shall provide CFD No.95-i with written notice of intent to prepay. Within
30 days of receipt of such written notice, CFD No.95-i shall notify such owner of the
Prepayment Amount for such Assessorts Parcel and may charge a reasonable fee for
providing this service. Prepayment must be made not less than 60 days prior to any
redemption date for Bonds to be redeemed with the proceeds of such prepaid Special
Taxes.
The Prepayment Amount defined below) shall be calculated as summarized below
capitalized terms as defined below):
Bond Redemption Amount
plus Future Faci'l;ties Amount
plus Redemption Premium
plus Defeasance
plus Administrative Fees and Expenses
R*serve Pund Credit
Total: equals Prepayment Amount
As of the prpposed date of prepayment, the Prepayment Amount defined below) shall be
calculated as follows:
Para*i*ph No.
1. For an Assessor's Parcel of Developed Property or an Assessor's Parcel of
Undeveloped Property for which a building permit has been issued: compute the
Assigned Special Tax and Backup Special Tax using the Backup Special Tax per
sqii* foot indicated in Section C. i.e. i)) for the Assessor's Parcel to be prepaid.
2. Fstiinate the Assigned Special Taxes for the entire authorized bonding program for
CFD No 95-1 excluding any Assessor's Parcels which have previously prepaid
the Special Tax) assuming that all antic* Developed Property were in existence
as of the date the prepayment is being calculated.
3' Eshnate the Backup Special Taxes for the entire authorized bonding program for
CFD No.95-i using the Backup Special Tax per square foot indicated in Section
C. 1 e.(i) excluding any Assessor's Parcels which have previously prepaid the
Special Tax).
4. For an Assessor's Parcel of Developed Property or an Assessor's Parcel of
Undeveloped Property for which a building permit has been issued: i) divide the
Assigned Special Tax computed pursuant to paragraph 1(a) by the total Assigned
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Special Taxes computed pursuant to paragraph 2; and il) divide the Backup Special
Tax computed pursuant to paragraph 1(a) by the total Backup Special Taxes
computed pursuant to paragraph 3.
5. For an Assessor's Parcel of Developed Property or an Assessor's Parcel of
Undeveloped Property for which a building permit has been issued: multiply the
larger quotient computed pursuant to paragraph 4(a)(i) or 4(a)(li) by the
Outstanding Bonds to compute the amount of Outstanding Bonds to be retieed and
prepaid the *ond Redemption Amount *
6. Compute the current Future Facilities Costs.
7. For an Assessor's Parcel of Developed Property or an Assessor's Parcel of
Undeveloped Property for which a building permit has been issued: multiply the
larger quotient c'omputed pursuant to paragraph 4(a)(i) or 4(a)(li) by the amount
determined pursuant to paragraph 6 to compute the amount of Future Facilities
Costs to be prepaid the *uture Facilities Amount *.
8. Mult*ly the Bond Redemption Amount computed pursuant to paragraph 5 by the
applicable redemption premium, if any, on the Outstanding Bonds to be redeemed
with the preceeds of the Bond Redemption Amount the *edemption Premium").
9. Compute the amount needed to pay mterest on the Outstanding Bonds to be
redeemed with the proceeds of the Bond Redemption Amount until the earliest call
date for Outstanding Bonds.
10. Compute the amount of Special Taxes paid with respect to the applicable
Assessor's Parcel during the current Fiscal Year and confirm that no Special Tax
delinquencies apply to such Assessor's Parcel. The applicable Assessor's Parcel
shall receive a credit for any Special Taxes paid which have not yet been utilized
to pay the Special Tax Requirement, but no credit shall be given for Special Taxes
paid that have already been used to pay the Special Tax Requirement.
11. The City Manager, at his discretion, shall compute the amount of interest earnings
to be derived from the reinvestment of the Prepayment Amount until the
redemption date for the Outstanding Bonds that will be available to offset such
Prepayment Amount.
12. Add the amounts computed pursuant to paragraph 9 and subtract the amounts
computed pursuant to paragraphs 10 and 11 the *efeasance *.
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13. The administrative fees and expenses of CFD No.95-i are as calculated by the
City Manager and include the costs of computation of the Prepayment Amount, the
costs of redeeming Bonds, and the costs of recording any notices to evidence the
prepayment and the redemption the *dnunistrci:tve Fees and Expenses *.
14. The Reserve Fund credit, if any, shall be calculated as a reduction in the applicable
reserve fund resulting from the redemption of Outstanding Bonds with the
Prepayment Amount. If the applicable reserve fund is below the Reserve
Requiiement as specified in the Fiscal Agent Agreement, no Reserve Fund credit
shall be given. the Reserve Fund CTedit*.
15. The Special Tax prepayment is equal to the sum of the amounts computed pursuant
to paragraphs 5, 7, 8, 12, and 13, less the amount computed pursuant to
paragraph 14 the *epaymentAmounr').
The Pz**yment Amount less the amounts computed pursuant to paragraphs 7 and 13 shall
be placed in the Bond Fund established under the Fiscal Agent Agreement and used to
retire Outstanding Bonds in accordance with the terms of the Fiscal Agent Agreement.
The Future Facilities Amount computed pursuant to paragraph 7 shall be placed in the
Construction Fund established under the Fiscal Agent Agreement to be used for the
construction and/or acquisition of future public facilities in accordance with the terms of
the Fiscal Agent Agreement. The amount computed pursuant to paragraph 13 shall be
retained by the City.
Notwitlisanding the foregoing, no Special Tax prepayment shall be allowed unless, in all
cases i) the amount of maximum Special Taxes that may be levied on the Taxable
Property within CFD No.95-i shall be at least 1.1 times annual debt service on all
Outstanding Bonds, and li) if the Assessor's Parcels subject to the prepayment elect to
prepay, the Special Taxes generated by the Assessor's Parcels of Taxable Property that
have not been prepaid wrn be adequate to pay the principal of and interest on all Bonds
when due, all as determined by the City Manager or his designee.
Prepayments of the Special Tax may be collected as described in Section F above. All
capitaled terms used herein and not defined herein shall have the meaning set forth in the
Fiscal Agent Agreement. With re**ct to any Assessor's Parcel that is prepaid, the City
shall cause a suitable notice to be recorded in compliance with the Act following receipt
of such prepayment of Special Taxes, to indicate the prepayment of Special Taxes and the
release of the Special Tax lien, and the obligation of such Assessor's Parcel to pay the
Special Tax shall cease.
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H.
The Special Tax on an Assessor's Parcel of Developed Property or an Assessor's Parcel
of Undeveloped Property for which a building permit has been issued may be pardally
prepaid and that portion of the Special Tax obligation permanently satisfied. The amount
of the prepayment shall be calculated as in Section G; except that a partial prepayment
shall be calculated according to the following formula:
PP *E x F.
These terms have the following meaning:
PP the partial prepayment
the Prepayment Amount calculated according to Section G
F the percent by which the owner of the Assessor's Parcel(s) is partially prepaying
the Special Tax.
The owner of any Assessor's Parcel who desires such prepayment shall notify CFD No.
95-1 in writing of i) such owner's intent to partially prepay the Special Tax and, Ii) the
percentage of the Special Tax to be prepaid. The City Manager shall provide the owner
with a statement of the amount required for the partial prepayment of the Special Tax for
an Assessor's Parcel within 30 days of the request and may charge a reasonable fee for
providing this service.
With respect to any Assessor's Parcel that is partially prepaid, the City shall i) distribute
the funds remitted to it according to the Fiscal Agent Agreement, li) cause a suitable
notice to be recorded following receipt of such prepayment of Special Taxes, to indicate
the partlal prepayment of Special Taxes, *) indicate in the records of CFD No.95-i that
there has been a partial prepayment of the Special Tax and that a portion of the Special
Tax applicable to such Assessor's Parcel, equal to the outstanding percentage 1.00 F)
of the remalning Maximum Special Tax, shall continue to be levied on such Assessor's
Parcel. When a partial prepayment is made for an Assessor's Parcel of Undeveloped
Property, the percentage reduction in the Maximum Special Tax shall continue to apply
to such Assessor's Parcel after it becomes Developed Property, or to any succeeding
Assessor's Parcels should such Assessor's Parcel subdivide.
TERM OF SPECIAL TAX
The Special Tax shall be levied for a term of up to 50 years, commencing with Fiscal Year
1996-97. Special Taxes shall not be levied once all bonds issued by the CFD have been
retired.
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J. APPEAI
Any property owner claiming that the amount or application of the Special Tax is not
coreect and r*esting a reflind may file a written notice of appeal with the City Manager
not later than one calendar year after having paid the Special Tax that is disputed. The
City Manager shall promptly review the appeal, and if necessary, meet with the property
owner, consider written and oral evidence regarding the amount of the Special Tax, and
decide the appeal. If the City Manager's decision requires the Special Tax be modified
or changed in favor of the prpperty owner, a cash reflind shall not be made except for the
last year of levy), but an adjustment shall be made to the next Special Tax levy. Any
dispute over the decision of the City Manager shall be refeffed to the Council and the
decision of the Council shall be final. This procedure shall be exclusive and its exhaustion
by any property owner shall be a condition precedent to any legal action by such owner.
1:*cLIE*\LAQuINTA.crr\MELLo*RMA4.Doc 1011011995
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