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CC Resolution 1995-088^!I RESOLUTION NO 95-88 RESOLUTION OF THE CITY COUNCIL OF CITY OF LA QUINTA ESTABLISHING COMMUNITY FACILITIES DISTRICT NO.95-i OF THE CITY OF LA QUINTA, AUTHORIZING THE LEVY OF A SPECIAL TAX THEREIN AND CALLING AN ELECTION WHEREAS, the City Council of City of La Quinta the City Council") has heretofore adopted Resolution No.95-73 stating its intention to form Community Facilities District No.95-i of the City of La Quinta Community Facilities District No.95-i" or the District") pursuant to 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 the Act"); and WHEREAS, a copy of Resolution No.95-73 setting forth a description of the proposed boundaries of Community Facilities District No.95-i, the facilities and services to be financed by the District and the rate and method of apportionment of the special tax proposed to be levied within the District is on file with the Clerk of the City Council and except to the extent amended by this resolution is incorporated herein by reference; and WHEREAS, notice was published and mailed to all landowners of the land proposed to be included within the District as required by law relative to the intention of the City Council to form proposed Community Facilities District No.95-i and to levy a special tax and to incur bonded indebtedness in the amount of $12,000,000 therein; and WHEREAS, on November 21, 1995, this City Council held noticed public hearings as required by law relative to the proposed formation of Community Facilities District No.95-i, the levy of the special tax therein and the issuance of bonded indebtedness by the District; and WHEREAS, prior to the noticed public hearings there was filed with this City Council a report containing a description of the facilities necessary to meet the needs of the District and an estimate of the cost of such facilities as required by Section 53321.5 of the Government Code, which report was updated at the request of the City Council and submitted in final form on November 21,1995 collectively, the Report") and a remedial action plan in compliance with the requirements of Section 53321.5 of the Government Code; and WHEREAS, at the public hearings all persons desiring to be heard on all matters pertaining to the formation of Community Facilities District No. 95-i, the levy of the special tax and the issuance of bonded indebtedness were heard and full and fair hearings were held; and WHEREAS, at the public hearings evidence was presented to the City Council on the matters before it, and the proposed special tax to be levied within the District was not precluded by a majority protest of the type described in Government Code Section 53324, and this City Council at the conclusion of the hearings is fully advised as to all matters relating to the formation of the District, the levy of the special tax and the issuance of bonded indebtedness therein; and BIB] 08-20-1998-U01 02:41:35PM-U01 ADMIN-U01 CCRES-U02 95-U02 88-U02 ^!I I I J L I I WHEREAS, the City Council has determined that there are fewer than twelve registered voters residing in the proposed boundaries of Community Facilities District No.95-i and that the qualified electors in Community Facilities District No.95-i are the owners of land located within the boundaries of the District; and WHEREAS, on the basis of all of the foregoing, the City Council has determined at this time to proceed with the establishment of Community Facilities District No.95-i and to call an election therein to authorize i) the levy of special taxes pursuant to the rate and method of apportionment of the special tax, as set forth in Exhibit A attached hereto, and ii) the establishment of an appropriations limit for Community Facilities District No.95-i; and WHEREAS, the owner of all land within Community Facilities District No.95-i has filed with the City Clerk a Waiver of Certain Election Procedures With Respect to Landowner Election for Community Facilities District No.95-i of the City of La Quinta. RE CITY COUNCIL OF RE CITY OF LA QUNTA HEREBY FINDS, DEThRMINES, RESOLVES, AND ORDERS AS FOLLOWS: Section 1. Each of the above recitals is true and correct. Section 2. A community facilities district to be designated Community Facilities District No. 95-i of the City of La Quinta" is hereby established pursuant to the Act. The City Council hereby finds and determines that all prior proceedings taken with respect to the establishment of the District were valid and in conformity with the requirements of law, including the Act. This finding is made in accordance with the provisions of Section 53325.1(1)) of the Act. Section 3. The boundaries of Community Facilities District No.95-i are established as shown on the map designated Map of Proposed Boundaries of Community Facilities District No.95-I", which map is on file in the office of the Clerk and was recorded as document No.371251 pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the County of Riverside, Book of Maps and Assessments and Community Facilities Districts in the County Recorder's Office in Book No. 40 Page No. 67. Section 4. The facilities and expenses authorized to be provided for Community Facilities District No.95-i are as follows: 1. 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; PuBL32394*1 Io14I*s3.ooo22 2 BIB] 08-20-1998-U01 02:41:35PM-U01 ADMIN-U01 CCRES-U02 95-U02 88-U02 ^!I I*J I L I ** I I I I 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"). The City Council finds that the proposed Facilities are necessary to meet the facilities needs within the Community Facilities District No.95-i to facilitate development therem. Section 5. Except where flinds are otherwise available, it is the intention of the City Council, subject to the approval of the eligible voters of the District, to levy the proposed special tax at the rate or rates set forth in Exhibit A hereto on all non*xempt property within the District sufficient to pay for I) the Facilities, ii) the principal and interest and other periodic costs on the bonds proposed to be issued to finance the Facilities and Incidental Expenses, including the establishment and replenishment of reserve flinds, any remarketing, credit enhancement and liquidity facility fees and other expenses of the type permitted by Section 53345.3 of the Act; and iii) the costs of forming Community Facilities District No.95-i and administering the levy and collection of the special tax and all other administrative costs of the special tax levy and bond issues. The District expects to incur, and in certain cases has already incurred, incidental expenses in connection with the creation of the District, the issuance of bonds, the levying and collecting of the special tax, the completion and inspection of the Facilities and the annual administration of the bonds and the District. The rate and method of apportionment of the special tax is described in detail on Exhibit A hereto and incorporated herein by this reference, and the City Council hereby finds that Exhibit A contains sufficient detail to allow each landowner within the District to estimate the maximum amount that may be levied against each parcel. As described in greater detail in the Report, which is incorporated by reference herein, the special tax is based on the expected demand that each parcel of real property within Community Facilities District No.95-i will place on the Facilities and on the benefit that each parcel will derive from the right to access the Facilities and, accordingly, is hereby determined to be reasonable. Fiscal year 2046/2047 is the last fiscal year in which the special tax may be levied on private residential property. The special tax is apportioned to each parcel on the foregoing bases pursuant to Section 53325.3 of the Act and such special tax is not on or based upon the ownership of real property. The Director of Finance, 78495 Calle Tampico, La Quinta, California 92253, telephone number 619) 777-7000, will be responsible for preparing annually, or authorizing a designee to prepare, a current roll of special tax levy obligations by assessor's parcel number and will be responsible for estimating filture special tax levies pursuant to Section 53340.2 of the Act. Section 6. 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 A, the City Council shall, on behalf of Community Facilities District No.95-i, increase the levy to the extent necessary and permitted by law and these proceedings upon the remalning property within Community Facilities District No.95-i which is not delinquent or exempt in order to yield the required debt service payments on any outstanding bonds of the District or to prevent the District from defaulting on any of its other obligations or liabilities. The amount of the special tax will be set in accordance with the rate and method of apportionment of the special tax attached hereto as Exhibit A. puBL:32394*1 10141B2585.00022 3 BIB] 08-20-1998-U01 02:41:35PM-U01 ADMIN-U01 CCRES-U02 95-U02 88-U02 ^!I L I * LI II I I I Section 7. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code, a continuing lien to secure each levy of the special tax shall attach to all non*xempt real property in 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 special tax by the legislative body ceases. Section 8. Consistent with Section 53325.6 of the Act, the City Council finds and determines that the land within Community Facilities District No.95-i, if any, devoted primarily to agricultural, timber or livestock uses and being used for the commercial production of agricultural, timber or livestock products is contiguous to other land within Community Facilities District No.95-i and will be benefited by the Facilities proposed to be provided within Community Facilities District No.95-i. Section 9. It is hereby flirther determined that there is no ad valorem property tax currently being levied on property within proposed Community Facilities District No.95-i for the exclusive purpose of paying the principal of or interest on bonds or other indebtedness incurred to finance the construction of capital facilities which provide the same services to the territory of Community Facilities District No. 95-i as are proposed to be provided by the Facilities to be financed by Community Facilities District No. 95-1. Section 10. Written protests against the establishment of the District have not been filed by the property owners of one-half 1/2) or more of the area of land within Community Facilities District No.95-i not exempt from the special tax. The City Council hereby finds that the proposed special tax has not been precluded by a majority protest pursuant to Section 53324 of the Act. Section 11. An election is hereby called for Community Facilities District No.95-i on the propositions of levying the special tax on the property within Community Facilities District No. 95-i and establishing an appropriations limit for the District pursuant to Section 53325.7 of the Act and shall be consolidated with the election on the proposition of incurring bonded indebtedness, pursuant to Section 53351 of the Act. The language of the proposition to be placed on the ballot is attached hereto as Exhibit B. Section 12. The date of the election for Community Facilities District No.95-i on the proposition of incurring the bonded indebtedness, authorizing the levy of the special tax and establishing an appropriations limit for the District shall be November 21, 1995. The City Clerk of the City of La Quinta shall conduct the election. Except as otherwise provided by the Act, the election shall be conducted in accordance with the provisions of law regulating elections of the City of La Quinta insofar as such provisions are determined by the City Clerk to be applicable. The City Clerk is authorized to conduct the election following the adoption of this resolution and the resolution calling the bond election and to close the election when all ballots have been cast as provided in Section 53326(d) of the Government Code. Section 13. It is hereby found that there are no registered voters within the territory of proposed Community Facilities District No. 95-i and have been none in the District during the 90 days preceding the close of the protest hearing held by this City Council, and, pursuant to Section 53326 of the Government Code, the ballots for the special election shall be distributed in person or by mail with return postage prepald to the landowners within Community Facilities PuBL:32394*1 I()141R2588.00022 4 BIB] 08-20-1998-U01 02:41:35PM-U01 ADMIN-U01 CCRES-U02 95-U02 88-U02 ^!I I L I * I District No.95-i at the close of the protest hearing. Each landowner shall have one vote for each acre or portion thereof that he or she owns within Community Facilities District No. 95-1, as provided in Section 53326 of the Governrnent Code. PASSED, APPROVED AND ADOFI*D ThIS 21st DAY OF Noveinber, 1995. Mayori**C*ia Quinta SEAL) Clerk of the Ci of La Quinta punL:32394*1 10141B2588.00022 5 BIB] 08-20-1998-U01 02:41:35PM-U01 ADMIN-U01 CCRES-U02 95-U02 88-U02 ^!I I I * LI II I I STATh OF CALIFORNIA ss. COUNTY OF RIVERSIDE I* Saundra Juhola, City Clerk of the City of La Quinta, California do hereby certi* that the foregoing Resolution No. 95-88 was duly adopted by the City Council of said City at a meeting of said City Council held on the 21st day of *mber,1995, and that it was so adopted by the following vote: AYES: Council Members Banqerter, Cathcart, Perkins, Sniff, Mayor Pena NOES: None ABSTAIN: None ABSENT: None ity Clerk of the of L* Ouinta PuBL:32394*1 IO14I*88.ooo22 6 BIB] 08-20-1998-U01 02:41:35PM-U01 ADMIN-U01 CCRES-U02 95-U02 88-U02 ^!I I I L I STATh OF CALIFORNIA ss. COUNTY OF RIVERSIDE I, Saundra Juhola, City Clerk of the City of La Quinta, California do hereby certify that the above and foregoing is a full, true and correct copy of Resolution No.95-88 of said City Council, and that the same has not been amended or repealed. Dated: November 2* 1995 City Clerk of the City of La Ouinta puBL:32394*1 IO14I*S8.OOD22 7 BIB] 08-20-1998-U01 02:41:35PM-U01 ADMIN-U01 CCRES-U02 95-U02 88-U02 ^!I I I 1 L I II I I I EXHIBIT A RATh AND METhOD OF APPORTIONMENT OF SPECIAL TAX FOR COMMUNITY FACILITIES DISTRICT NO.95-i OF mE CITY OF LA QUINTA puBL.'32394*1 10141B2588.00022 8 BIB] 08-20-1998-U01 02:41:35PM-U01 ADMIN-U01 CCRES-U02 95-U02 88-U02 ^!I L. W*I I L I I ii 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 la Quinta Community Facilities District No.95-i *ista Santa Rosa)('*CFD No.95-i") each Fiscal Year, in am 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. flEEI**IIIQ* The terms hereinafter set forth have the following meanings: Acre or Acreage" means the land area of an Assessor's 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 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 Title 5 of the Government Code of the State of California. Administrative Expenses" means the following actual or reasonably estimated costs directly related to the adintntst:a*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 Fiscai Agent; the costs of the Fiscal Agent including its legal counsel) in the discharge of the duties required of it under the Fiscai 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 regading the Special Taxes; the costs of the City or its designee related to any appeal or legal action related to the Special Taxes; costs associated with the release of flinds fiom an escrow account; and an allocable share of the salaries of the City staaf and City overhead directly related to the foregoing. Administrative Expenses shall also include amounts advanced by the City for any other adminlstrative purposes of the CFD No.95-i, including the costs related 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. Apartment Property" means all Assessor's Parcels of Residential Property for which a building permit has been issued for buildin* a structure comprised of attached residential units, all of which are made avallable for rental. but not purchase, by the general public. BIB] 08-20-1998-U01 02:41:35PM-U01 ADMIN-U01 CCRES-U02 95-U02 88-U02 ^!I I L I * * I II I City of La Qialuta CFD No. 9*1 Page 2 Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned Assessor's Parcel number. A**r's *r*l Map" means an official map of the County Assessor of the County of Riverside designating parcels by Assessor's Parcel number. Assigned Special Tax" 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 Section C below. Bonds" means any bonds or other debt as defined 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 * Quinta. City Manager" means the City Manager of the City or his*her 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 F'scal Agent" means the entity acting as Fiscal Agent under the Fiscal Agent Agreement. F'scal Agent Agreement" means the agreement by that name between the City and the Fiscal Agent pursuant to which the Bonds are issued, including any amendment thereof or supplement thereto. Fiscal Year" means the period starting 3uly 1 and ending on the following 3une 30. BIB] 08-20-1998-U01 02:41:35PM-U01 ADMIN-U01 CCRES-U02 95-U02 88-U02 ^!I I a L I II I City of La Quinta CFD No. 9*1 Page 3 ItGross Floor Area" means the covered and enclosed space determined to be within the perimeter of a non-residential structure, not including any storage aeeas incidental to the principal use of the development, garage, parking structure, unenclosed walkway, or utility or disposal area. The amount of chargeable covered and enclosed space within the perimeter of a commercial or industraal structure shall be based on the building permit issued for the structure. Inflafion Index'1 means the annual percentage change in the Engineering News-Record Building Cost Index for the City of I-os 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 Los 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 maximum Special Tax, determined in accordance with Seccion 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. Nan-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). Property 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 BIB] 08-20-1998-U01 02:41:35PM-U01 ADMIN-U01 CCRES-U02 95-U02 88-U02 ^!I I I L I iLl * I I I City of La Quinta CF') No.95-i Page 4 of constructing a residential structure made up of two or more units that share common walls. Single Family Detached P*perty" 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. Spedal Tax Requirement" means that amount reqLiired 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 directly 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 directly for authorized facilities, 4) pay costs associated with the release of funds from an escrow account if any, S) 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 estiinated based on the delinquency rate in the CFD for the previous Fiscal Year.) Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No.95-i which are not exempt ftt'm the Special Tax pursuant to law or Section E below. Taxable Property Owner Association Property" means all Assessor's Parcels of Property Owner Association Property which have not been exempted pursuant to Section B. *TaxabIe Public 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. BIB] 08-20-1998-U01 02:41:35PM-U01 ADMIN-U01 CCRES-U02 95-U02 88-U02 ^!I L * I L I * I II I I I City of La Quinta CF1) No. 9*1 Page 5 B. ASSTGNMENT TO LAND USE CATEGORIES For each Fiscal Year, all Taxable Property within CFD No.95-i shall be classified as Developed Property, Undeveloped Property, Taxable Property Owner Association Property 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 Assessor's Parcel of Developed Property, all Developed Property shall be assigned to one of the Land Use Classes designated in Table 1 below. Single Parnily Detached Property shall be assigned to Land Use Classes 1 through 4 based on Building Square Footage. Single Family 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 Maxiinum Special Tax for each Assessor's Parcel classified as Developed Property shall be the greater of i) the amount derived by application of the Backup Special Tax or il) the arnount derived by application of the Assigned Special Tax. b. Initial A*signed Special Taxes The Fiscal Year 1995-96 Initial Assigned Special Tax for each Land Use Class is shown below in Table I BIB] 08-20-1998-U01 02:41:35PM-U01 ADMIN-U01 CCRES-U02 95-U02 88-U02 ^!I I I * * I II I I City of La Quwta No. 9*1 Pa:e 6 IABL1 Initial Assigned Special Taxes for Developed Property in Community Facilities District No.95-i *iscaI Year 1995-96) Land FY1995-96 Use DesCriPb*OU Buildin*square Tax F*otage: I *siedSpeciai 1 Single Family Detached Property * 2 500 sq. ft. $1,108 per unit 2 Sin*e Family Detached Property 2 000 2499 sq. ft. $895 per unit 3 Single Family Detached Property 1,500 1999 sq. ft. $696 per unit 4 Sin*e Familv Detached Property 1,500 sq. ft. $517 T'er unit 5 Single Family Attached Property * 1,200 sq. ft. $517 per unit 6 Single Family Attached Prope* 1,200 sq. ft. $358 per unit 7 Apartment Property NA $358 per unit 8 Non-Residential Pro*rtv NA $3,490 Per 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 D*nd Use Cla*ses In some intances 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 purposes of computing the Assigned Special Tax for Non-Residential Property, the BIB] 08-20-1998-U01 02:41:35PM-U01 ADMIN-U01 CCRES-U02 95-U02 88-U02 ^!I a*i I * * I II I City of La Quinta CF') No 95-1 Page 7 acreage of the portion of the Assessor's Parcel allocated to Non-Residential Pp:perty shall be determined based on the ratio of the Gross Floor Aeea 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 Speci*d Tax The Backup Special Tax shall be the lessei of i) $O.08017 per square foot of Assessor's Parcel, or li) the amount calculated with each issuance of Bonds pursuant to the following formula: *Sx1.l) +AB-A*I\ +(TAxO.85) Where the terms used in the formula have the following meaaing: 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 PPperty 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 CFD 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 *ger the City Manager may request a cenification as to the Acreage for purposes of this calculation from engineers involved in any projects proposed for or under development within 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 Apartment, 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. BIB] 08-20-1998-U01 02:41:35PM-U01 ADMIN-U01 CCRES-U02 95-U02 88-U02 ^!I I * LI * I City of La Quinta CFD No.95-i Page S If an Assessor's Parcel of Developed Property contains both Residential Property and Non-Residential Property, the land area allocated to Residential Pppperty 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 allocated to Non-Residential Pr*rty 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 determined pursuant 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. ji) above shall be applicable stating 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 *hall not increase as a result of Bonds i*sued suhseguent to the date a buildin* permit is issued with re*ect to such Assessor's Parcel. 2. Undeveloped Property, Taxable Property Owner Association Property and Taxable Public Property a. Maximum Special Tax The Maximum 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 Pipperty 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. BIB] 08-20-1998-U01 02:41:35PM-U01 ADMIN-U01 CCRES-U02 95-U02 88-U02 ^!I I L I * L I II I I City of La Quinta CFD No.95-i Page 9 D. **TROD OF APPORIIONMENT OF T1IE SPECIAL TAX Commencing with Fiscal Year 1996-97 and for each following Fiscal Year, and prior to the final date on which the County Auditor will accept the levy for inclusion on the ad valorem real pr**rty tax roll for such Fiscal Year, the City Manager shall determine the Special Tax Requirement to be collected from Taxable Property in CF') No.95-i in such Fiscal Year. The Special Tax shall be levied as follows until the amount of the levy equals the Special Tax Requirement, subject to the limitations specified herein and in the fmal 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 equal percentages on each Assessor's Parcel of Undeveloped Property, up to 100% of the Maximum Special Tax for Undeveloped Property; Thini: If additional monies are needed atter 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 increased in equal percentages from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor's Parcel; and Fourth 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. EXEM*NS The Council shall not levy a Special Tax on the following: 1) Up to a total of 22.3 acres of Public Property, except as otherwise provided inSectionsS33l7.3, 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 will be irrevocably allocated by the City Manager on a first in time basis. If the total number of acres of land conveyed exceeds the amount stated above, then BIB] 08-20-1998-U01 02:41:35PM-U01 ADMIN-U01 CCRES-U02 95-U02 88-U02 ^!I L I * I I I City of La Quinta CF') No.95-i Page 10 the acres exceeding such total shall be taxed at the applicable rate set foith 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 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 actaally foreclose on delinquent parcels as permitted by the Act. G. * The following definitions apply to this Section G: Future Facillties Costs" means the diiference 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. tOutstanding 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 Facillties Requirements" means $7,183,088 ih 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 CF') No.95-i, or ji) shall be determined by the City Manager concurrently with the adoption of a covenant that CF') 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 CF') No.95-i as described in Section D. The CF') 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 BIB] 08-20-1998-U01 02:41:35PM-U01 ADMIN-U01 CCRES-U02 95-U02 88-U02 ^!I I I 1 LI I I I j City of La Quinta CFD No. 9*1 Pagc 11 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 Assessor's 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 defmed below) shall be calculated as summarized below capitalized terms as defmed below): Bond Redemption Amount plus Future Facilities Amount plus Redemption P:remium plus Defeasance plus Administrative Fees and Expenses Reserve Fund Credit Total: equals Prepayment Amount As of the prpposed date of prepayment, the Prepayment Amount defmed below) shall be calculated as follows: Para*ph No: 1. For an Assessor's Parcel of Developed Property or an Assessor's Paccel 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 square foot indicated in Section C. i.e.(i)) for the Assessor's Parcel to be prepaid. 2. Estimate the Assigned Special Taxes for the entire authorized bonding program for CFD No.95-i excluding any Assessor's Parcels which have previously prepaid the Special Tax) assuming that all anticipated Developed Property were in existence as of the date the prepayment is being calculated. 3. Estimate the Backup Special Taxes for the entire authorized bonding progaam 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 Assessors 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 BIB] 08-20-1998-U01 02:41:35PM-U01 ADMIN-U01 CCRES-U02 95-U02 88-U02 ^!I I I * * I II II City of La Quinta CF') No. 9*1 Page 12 Special Taxes computed pursuant to paragr*ph 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)(il) by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid the *nd 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 computed pursuant to paragraph 4(a)(i) or 4(a)(il) by the amount determined pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be prepaid the *urure Facillties Amount,). 8. Multiply 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 proceeds of the Bond Redemption Amount the *edemption Premium"). 9. Compute the amount needed to pay interest 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 Veftasance,). BIB] 08-20-1998-U01 02:41:35PM-U01 ADMIN-U01 CCRES-U02 95-U02 88-U02 ^!I I L I *J I II I I City of La Quinta CFD No.95-i Page 13 13. The administrative fees and expenses of CFD No.95-i are as calcuiated 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 A dmim'stradve Fees and Expe*es'). 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 ReqLlirement as specified in the Fiscal Agent Agreement, no Reserve Fund credit shall be given. the Reserve Fund Credit *. 15. The Special Tax prepayment is eqLlal to the sum of the amounts computed pursuant to paragraphs 5, 7, *, 12, and 13, less the amount computed pursuant to paragraph 14 the *ep*mentAmowu*. The Prepayment Amount less the amounts computed puuuant 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 Ainount computed pursuant to paragraph 7 shall be placed in the Construction Fund established under the Fiscal Agent Agreement to be used for the conrtruction and/or acquisition of fliture 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. Notwidisanding 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 tilnes annual debt service on all Outstanding Bonds, and ji) 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 will 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 capitalized terms used herein and not defined herein shall have the meaning set forth in the Fiscal Agent Agreement. With respect 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. BIB] 08-20-1998-U01 02:41:35PM-U01 ADMIN-U01 CCRES-U02 95-U02 88-U02 ^!I I * I I I City of La Quinta CFD No.95-i Page 14 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 partially prepaid and that ponion 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 P* F. These terms have the following meaning: PP the partial prepayment PS 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 parally prepay the Special Tax and, li) 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 patttial 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 respept to any Assessor's Parcel that is partally prepaid, the City shall i) distribute the funds remiued 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 partal prepayment of Special Taxes, HI) 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 Assessors 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 panial 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. BIB] 08-20-1998-U01 02:41:35PM-U01 ADMIN-U01 CCRES-U02 95-U02 88-U02 ^!I I.*J I L I * LI * I City of La Quinta CTh No.95-i Page 15 J. APP*AT.* Any property owner claiming that the amount or application of the Special Tax is not correct and i*questing a refund 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 prompdy 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 property 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 referred 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. J:*CL*NTS*AQUINTA.crflMELLo\RMA4.Doc 1011011995 BIB] 08-20-1998-U01 02:41:35PM-U01 ADMIN-U01 CCRES-U02 95-U02 88-U02 ^!I I I II I EXRIBIT B BALLOT PROPOS*ON COMMUNITY FACILITIES DISTRICT NO.95-i OF'I1IE CITY OF LA QUINTA SPECIAL TAX AND SPECIAL BOND ELE*ON PROPOSITION NO. A: Shall Community Facilities District No.95-i of the City of La Ouinta the District") be authorized to incur an indebtedness and issue bonds in the maximum aggregate principal amount of $*,OOO,O()O, with interest at a rate or rates not to exceed the maximum interest rate permitted by law, the proceeds of which will be used to finance the construction, purchase, modification, expansion, improvement or rehabilitation of water facilities, sanitary YES 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 to finance the incidental expenses the Incidental Expenses"), incurred and to be incurred in connection with the financing of the Facilities and the issuance of the bonds as provided in Resolution NO No.95-73 of the City Council of the City of La Ouinta the Resolution"), and shall a special tax with a rate or rates and method of apportionment as provided in the Resolution be levied to pay for the facilities, for the creation or replenishment of any necessary reserve funds, for any incidental expenses of the District, for any expenses associated with the Facilities, the Incidental Expenses or the bonds, and for the payment of the principal of and interest on such bonds? PROPOSITION B: For each year commencing with Fiscal Year 1996/97, shall the appropriations limit, as defined by YES subdivision h) of Section 8 of Article XIII B of the California Constitution, for Community Facilities District No.95-i an amount NO equal to the amount of the maximum special tax. PUBL:32394_1Io14I*58:.ooo22 9 BIB] 08-20-1998-U01 02:41:35PM-U01 ADMIN-U01 CCRES-U02 95-U02 88-U02