ORD 278ORDINANCE NO. 278
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
LA QUINTA, CALIFORNIA, AUTHORIZING THE LEVY OF
A SPECIAL TAX WITHIN COMMUNITY FACILITIES
DISTRICT NO. 95-1 OF THE CITY OF LA QUINTA
WHEREAS, on October 17, 1995, the City Council of the City of La Quinta (the "City
Council") adopted Resolution No. 95-73 stating its intention to form Community Facilities
District No. 95-1 of the City of La Quinta ("Community Facilities District No. 95-1 ") pursuant
to the Mello -Roos Community Facilities Act of 1982, as amended (the "Act") for the purpose of
financing 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 to finance the incidental expenses to be
incurred (the "Incidental Expenses"), all as more fully described in Resolution No. 95-73 to serve
the area within Community Facilities District No. 95-1; and
WHEREAS, notice was published as required by law relative to the intention of the City
Council to form proposed Community Facilities District No. 95-1 and to levy a special tax to pay
for the Facilities; and
WHEREAS, on November 21, 1995, the City Council held noticed public hearings as
required by law to determine whether it should proceed with the formation of Community
Facilities District No. 95-1 and authorize the rate and method of apportionment of a special tax to
be levied within Community Facilities District No. 95-1 for the purpose of paying for the
Facilities and Incidental Expenses, creating or replenishing any necessary reserve funds, paying
the annual costs associated with the bonds proposed to be issued to finance the Facilities and
Incidental Expenses, including, but not limited to, the principal and interest and other periodic
costs on bonds of Community Facilities District No. 95-1, any remarketing, credit enhancement
and liquidity facility fees and other expenses of the type permitted by Section 53345.3 of the Act,
the costs of forming Community Facilities District No. 95-1, and the costs of administering the
levy and collection of the special tax and all other administrative costs of the special tax levy and
bond or certificate of participation issues; and
WHEREAS, at said hearings all persons desiring to be heard on all matters pertaining to
the formation of Community Facilities District No. 95-1, the levy of a special tax and the
issuance of bonds to pay for a portion of the Facilities and Incidental Expenses were heard and a
full and fair hearings were held; and
WHEREAS, on November 21, 1995, the City Council adopted Resolution No. 9598
which established Community Facilities District No. 95-1, authorized the levy of a special tax
within Community Facilities District No. 95-1 and called an election within Community Facilities
District No. 95-1 for November 21, 1995 on the propositions of levying a special tax and
establishing an appropriations limit; and
WHEREAS, on November 21, 1995, an election was held within Community Facilities
District No. 95-1 at which the qualified electors approved by more than a two-thirds vote the
propositions of levying a special tax as set forth in Resolution No. 95-90 and establishing an
appropriations limit; and
WHEREAS, on November 21, 1995, the City Council adopted Resolution No. 95- 90
which certified the results of the November 21, 1995 election conducted by the City Clerk, which
results showed that more than two-thirds of the votes cast were in favor of the propositions to
levy the special tax and establish an appropriations limit;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LA QUINTA
ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY
FACILITIES DISTRICT NO. 95-1 DOES ORDAIN AS FOLLOWS:
Section 1. The above recitals are all true and correct.
Section 2. By the passage of this Ordinance, the City Council authorizes the levy of a
special tax at the rate and formula set forth in Exhibit "A" to Resolution No. 95-88 and which
for reference purposes is attached hereto as Exhibit "A" and incorporated by reference.
Section 3. The City Council is hereby further authorized to determine, by ordinance,
or by resolution if permitted by then applicable law, the specific special tax to be levied on each
parcel of land in Community Facilities District No. 95-1. The special tax to be levied shall not
exceed the maximum rates set forth in Exhibit "A", but the special tax may be levied at a lower
rate.
Section 4. Properties or entities of the state, federal or other local governments shall
be exempt from the above -referenced and approved special tax only to the extent set forth in
Section E of Exhibit "A" hereto and otherwise shall be subject to tax consistent with the
provisions of Section 53317.3, 53317.5 and 53340.1 of the Act in effect as of the date of
adoption of this Ordinance.
Section 5. All of the collections of the special tax shall be used only as provided for
in the Act and Resolution No. 95- 8 9 . The special tax shall be levied only so long as needed to
accomplish the purposes described in Resolution No. 95-89 .
Section 6. The special tax shall be collected in the same manner as ordinary ad
valorem taxes are collected and shall be subject to the same penalties and the same procedure and
sale in cases of delinquency as provided for ad valorem taxes as such collection procedure may
be modified by law or this Council from time to time.
Section 7. As a cumulative remedy, if debt is outstanding, the City Council may, not
later than four years after the due date of the last installment of principal on the Bonds, order that
any delinquent special tax as levied in whole or in part for payment of the debt, together with
any penalties, interest and costs accruing under this Ordinance, be collected by an action brought
in the superior court to foreclose the lien of such special tax.
PUBL:32386_110141B2588.00022 2
Section 8. This Ordinance relating to the levy of the special tax shall take effect 30
days after its final passage in accordance with the provisions of Section 36937 of the Goverment
Code, and this specific authorization for adoption is pursuant to the provisions of Section 53340
of the Government Code.
Section 9. The Mayor shall sign this Ordinance and the City Clerk shall attest to the
Mayor's signature and then cause the same to be published within fifteen (15) days after its
passage at least once in a newspaper of general circulation published and circulated in the City,
or by posting in three public places in the City, or published in a newspaper of general
circulation printed and published in the County and circulated in the City.
PASSED, APPROVED AND ADOPTED THIS 5th DAY OF December ,
1995.
/. 1"NZZ?�b
Mayor of the City of La Qui
(SEAL)
Clerk of the City bf La Quinta
PVBL:32386_11014IB2588.00022
STATE OF CALIFORNIA )
ss.
COUNTY OF RIVERSIDE )
I, Saundra Juhola, City Clerk of the City of La Quinta, California do hereby certify that
the foregoing Ordinance No. 278 was duly adopted by the City Council of said City at a
meeting of said City Council held on the 5th day of December , 1995, and that it was
so adopted by the following vote:
AYES: Council Members Adolph, Perkins, Sniff, Mayor Bangerter
NOES: None
ABSTAIN: None
ABSENT: None
City Clerk of the City of La Quinta
PUBL:32386_110141B2588.00022 4
EXHIBIT A
RATE AND METHOD OF APPORTIONMENT OF
SPECIAL TAX
FOR COMMUNITY FACILITIES DISTRICT NO. 95-1
OF THE CITY OF LA QUINTA
PVBL:32386_110141B2588.00022 5
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
FOR CITY OF LA QUINTA
COMMUNITY FACILITIES DISTRICT NO. 95-1
A special tax shall be levied on and collected in the City of La Quinta Community Facilities
District No. 95-1 (Vista Santa Rosa)(" CFD No. 95-1 ") 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. 95-1, unless exempted by law or by the provisions hereof, shall be taxed
for the purposes, to the extent and in the manner herein provided.
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 final 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 administration of CFD No. 95-1: 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 required 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
related to any appeal or legal action related to the Special Taxes; costs associated with the
release of funds from an escrow account; and an allocable share of the salaries of the City
staff and City overhead directly related to the foregoing. Administrative Expenses shall
also include amounts advanced by the City for any other administrative purposes of the
CFD No. 95-1, 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 building a structure comprised of attached residential
units, all of which are made available for rental, but not purchase, by the general public.
City of La Quinta
CFD No. 95-1
Page 2
"Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an
assigned Assessor's Parcel number.
"Assessor's Parcel 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. 95-1 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 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. 95-1.
"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 pursuant to which the Bonds are issued, including any amendment thereof or
supplement thereto.
"Fiscal Year" means the period starting July 1 and ending on the following June 30.
City of 1A Quinta
CFD No. 95-1
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
utility or disposal area. 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.
"Inflation Index" means the annual percentage change in the Engineering News -Record
Building Cost Index for the City of Los 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 Section C, that can be levied by CFD No. 95-1 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).
"Property Owner Association Property" means, for any Fiscal Year, all Assessor's
Parcels within the boundaries of CFD No. 95-1 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" means all 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" means all Assessor's Parcels of Residential Property,
other than Apartment Property, for which a building permit has been issued for purposes
City of La Quinta
CFD No. 95-1
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 CFD No. 95-1, 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, (5) pay any amounts required to establish
or replenish any reserve funds for any outstanding Bonds for CFD No. 95-1, (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" means all of the Assessor's Parcels within the boundaries of CFD
No. 95-1 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
Property Owner Association Property which have not been exempted pursuant to Section
E.
"Taxable 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.
City of La Quinta
CFD No. 95-1
Page 5
For each Fiscal Year, all Taxable Property within CFD No. 95-1 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 Family 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.
1. Developed Property
The Maximum 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 (ii) the amount derived by application of the Assigned Special Tax.
RWEEF I INTM. Ns=n
The Fiscal Year 1995-96 Initial Assigned Special Tax for each Land Use Class is
shown below in Table 1.
City of La Quinta
CFD No. 95-1
Page 6
TATIL1
Initial Assigned Special Taxes for Developed Property in
Community Facilities District No. 95-1 (Fiscal Year 1995-96)
land
FY >1995-96
Tse
BuJdipg Square
Assigned Special
Class
Descr "hon <
F`oota a
Tax
1
Single Family Detached Property
z 2,500 sq. ft.
$1,108 per unit
2
Single 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
Single Family Detached Property
< 1,500 sq. ft.
$517 per unit
5
Single Family Attached Property
z 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
1 Non -Residential Property
NA
1 $3 490 per acre
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.
Xff M. - OTO
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 purposes of
computing the Assigned Special Tax for Non -Residential Property, the
City of La Quinta
CFD No. 95-1
Page 7
acreage of the portion of the Assessor's Parcel allocated to Non -Residential
Property 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.
3001 i. t 1
The Backup Special Tax shall be the lesser of
(i) $0.08017 per square foot of Assessor's Parcel, or
(ii) the amount calculated with each issuance of Bonds pursuant to the
following formula:
[(DS x 1.1) + AE - All _(TA x 0.85)
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 Property 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
Manager (the City Manager may request a certification as to
the Acreage for purposes of this calculation from engineers
involved in any projects proposed for or under development
within CFD No. 95-1).
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.
City of La Quinta
CFD No. 95-1
Page 8
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 allocated 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.
R,742 1 o7a MR71 . -.
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. (ii) 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 res=tjo
such Assessor's Parcel.
2. Undeveloped Property, Taxable Property Owner Association Property and
Taxable Public Property
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.
1 1. - 1 1- U .. 11 11no
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.
City of La Quinta
CFD No. 95-1
Page 9
1 ►/1 11i 1 {� 9,40 Y Woo1 Dieu I Ii1 : .
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 property 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 Requirement, subject to the limitations specified herein and in the final
paragraph of Section 53321(d) of the Act.
Firg: 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;
311ird: 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 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.
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
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 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
City of La Quinta
CFD No. 95-1
Page 10
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.
u : �1►1 : g g Y � ►)
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. 95-1 may directly bill the
Special Tax, may collect Special Taxes at a different time or in a different manner if
necessary to meet its financial obligations, and may covenant to foreclose and may actually
foreclose on delinquent parcels as permitted by the Act.
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 Issued Bonds" means all Bonds that have been issued by CFD No. 95-1 prior
to the date of prepayment.
"Public Facilities 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. 95-1, or (ii) shall be determined by the City
Manager concurrently with the adoption of a covenant that CFD No. 95-1 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. 95-1 as described in
Section D.
The CFD No. 95-1 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
City of La Quinta
CFD No. 95-1
Page 11
time of prepayment. An owner of an Assessor's Parcel intending to prepay the Special
Tax obligation shall provide CFD No. 95-1 with written notice of intent to prepay. Within
30 days of receipt of such written notice, CFD No. 95-1 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 (defined below) shall be calculated as summarized below
(capitalized terms as defined below):
Bond Redemption Amount
plus
Future Facilities Amount
plus
Redemption Premium
plus
Defeasance
plus
Administrative Fees and Expenses
1=
Reserve Fund Credit
Total: equals
Prepayment Amount
As of the proposed date of prepayment, the Prepayment Amount (defined below) shall be
calculated as follows:
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
square foot indicated in Section C.1.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. 95-1 (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 program for
CFD No. 95-1 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
City of IA Quinta
CFD No. 95-1
Page 12
Special Taxes computed pursuant to paragraph 2; and (ii) 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)(ii) by the
Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and
prepaid (the `Bond Redemption Amount 1.
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)(ii) by the amount
determined pursuant to paragraph 6 to compute the amount of Future Facilities
Costs to be prepaid (the `Future Facilities Amount 1.
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 `Redemption 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 `Defeasance 1.
City of La Quinta
CFD No. 95-1
Page 13
13. The administrative fees and expenses of CFD No. 95-1 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 Administrative 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
Requirement as specified in the Fiscal Agent Agreement, no Reserve Fund credit
shall be given. (the "Reserve Fund Credit 1.
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 `Prepayment Amount �.
The Prepayment 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.
Notwithstanding 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. 95-1 shall be at least 1.1 times annual debt service on all
Outstanding Bonds, and (ii) 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.
City of La Quinta
CFD No. 95-1
Page 14
is 41 .2,40 Y: a W .1.4 Do 6411140i DO • :.
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 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 = PE x F.
These terms have the following meaning:
PP = the partial prepayment
PE = 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, (ii) cause a suitable
notice to be recorded following receipt of such prepayment of Special Taxes, to indicate
the partial prepayment of Special Taxes, (iii) indicate in the records of CFD No. 95-1 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 remaining 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.
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.
City of La Quinta
CFD No. 95-1
Page 15
J. APPEAT S
Any property owner claiming that the amount or application of the Special Tax is not
correct and requesting 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 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 property owner, a cash refund 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:\CLIENTS\LAQUINTA.CIT\MELLO\RMA4.DOC 10/10/1995
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE) ss.
CITY OF LA QUINTA )
I, SAUNDRA L. JUHOLA, City Clerk of the City of La Quinta, California, do hereby certify
the foregoing to be a full, true and correct copy of Ordinance No. 278 which was introduced
on the 21 st day of November, 1995 and was adopted at a regular meeting held on the 5th day
of December, 1995 not being less than 5 days after date of introduction thereof.
I further certify that the foregoing ordinance was posted in three (3) places within the City of
La uinta as specified in a resolution of the City Council.
UNDRA L. JU9LA./City Clerk
City of La Quinta, California
DECLARATION OF POSTING
I, SAUNDRA L. JUHOLA, City Clerk of the City of La Quinta, California, do hereby certify
that the foregoing ordinance was posted on December 14, 1995 pursuant to City Council
Res ution.
UNDRA L. JU POLA, City Clerk
City of La Quinta, California