HomeMy WebLinkAboutResolution - 3185 STATE OF CALIFORNIA ) RESOLUTION NO. 3185
COUNTY OF RIVERSIDE )
CITY OF SAN JACINTO )
RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY
OF SAN JACINTO WITH RESPECT TO ESTABLISHMENT OF
PROPOSED CITY OF SAN JACINTO COMMUNITY FACILITIES
DISTRICT NO. 2008-1 (PARKSIDE)
WHEREAS, the City Council (the "City Council") of the City of San Jacinto (the
"City") may, by a petition of ten percent or greater of the landowners, institute
proceedings for the establishment of a community facilities district pursuant to
Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the
California Government Code, commonly known as the "Mello-Roos Community
Facilities Act of 1982" (the "Act"), for the purposes of acquisition, construction,
furnishing and equipping of public facilities to be owned by the City which are necessary
to meet increased demands placed upon the City as a resuit of the development of
certain real property; and
WHEREAS, the City Council desires to levy special taxes and issue bonds of the
proposed community facilities district, the proceeds of which will be used to (a) finance
the cost of acquisition, construction, furnishing and equipping the public facilities listed
in Exhibit B; and (b) paying the incidental expenses associated with the creation of the
District (as defined below), issuance of bonds thereof, fund a reserve fund for the
bonds, the payment of costs of issuance of the bonds, the determination of the amount
and collection of the special taxes, and the payment of special taxes, and costs
otherwise incurred in order to carry out the authorized purposes of the District; and
WHEREAS, the bonds of the District will be repaid from special taxes to be
levied on the real property within the District, as more fully described herein.
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City
of San Jacinto, the following:
Section 1. Findings. The City Council finds that the foregoing recitals are true
and correct.
Section 2. Proposed District. A community facilities district is proposed to be
established under the terms of the Act. The name proposed for the
community facilities district is "City of San Jacinto Community
Facilities District No. 2008-1 (Parkside), County of Riverside, State
of California" (the "District").
Section 3. Description and Map of Boundaries. The boundaries of the District,
are described in Exhibit "A" attached hereto, and are also shown
Page 1 of 5
on the map entitled "Proposed Boundaries of City of San Jacinto
Community Facilities District No. 2008-1 (Parkside), County of
Riverside, State of California," which is on file with the City Clerk.
`— Said map is approved and, pursuant to Section 3110 of the
California Streets and Highways Code, the City Clerk shall, after
conforming with the other requirements of Section 3111 of said
Code, file the original of said map in her office, and not later than
ten (10) days prior to the date of the public hearing set forth in
Section 8 hereof shall record a copy of said boundary map with the
County Recorder of the County of Riverside.
Section 4. Types of Facilities: Incidental Expenses. The types of public
facilities proposed to be provided within and financed by the District
are set forth on Exhibit "B" attached hereto and incorporated
herein.
Section 5. Special Taxes. Except where funds are otherwise available,
special taxes in the District sufficient to pay the principal of and
interest on the bonds of the District and the annual administrative
expenses of the City and the District in determining, apportioning,
levying and collecting such special taxes, and in paying the
principal of and interest on such bonds, and the costs of
registering, exchanging and transferring such bonds, secured by
the recordation of a continuing lien against all taxable or
�— nonexempt property in the District, and maintaining a reserve fund
for such bonds, and paying any amounts that must be paid to the
United States in order to preserve the tax-exempt status of such
bonds shall be annually levied within the District. The rates and
method of apportionment of said special taxes for the District shall
be as set forth in Exhibit "C" attached hereto and by this reference
made a part hereof.
Section 6. Exempt Properties. Pursuant to Section 53340 of the California
Government Code, properties of entities of the state, federal, and
local governments not subject to a leasehold interest shall be
exempt from the levy of special taxes for the payment of the
principal of and interest on the bonds of the District.
Section 7. Necessity. The City Council finds that the proposed public facilities
described in Section 4 hereof are necessary to meet increased
demands placed upon the City as a result of new development
occurring within the boundaries of the District.
Section 8. Hearing. A public hearing on the establishment of the proposed
community facilities district shall be held at 7:00 p.m., or as soon
thereafter as the matter may be heard, on August 7, 2008, in the
Page 2 of 5
San Jacinto Unified School District Board Room, located at 2045
South San Jacinto Avenue, San Jacinto, California.
Section 9. Notice. The City Clerk shall publish a notice of the time and place
of said hearing as required by Section 53322 of the California
Government Code, and shall also give notice of the time and place
of said hearing by first-class mail to each registered voter and to
each landowner within the proposed community facilities district as
prescribed by Section 53322.4 of said Code. Said notice shall be
published at least seven (7) days and mailed at least fifteen
(15) days before the date of the hearing, and shall contain the
information required by said Section 53322.
Section 10. Reports. The officers of the City who will be responsible for
providing the proposed types of public facilities and services to be
provided within and financed by the District, if it is established, shall
study the proposed district, and, at or before the time of said
hearing, file a report with the City Council containing a brief
description of the public facilities by type which will in their opinion
be required to adequately meet the needs of the proposed
community facilities district and their estimate of the fair and
reasonable cost of providing those public facilities and the
incidental expenses to be incurred in connection therewith. All
such reports shall be made a part of the record of the hearing to be
held pursuant to Section 8 hereof.
Section 11. Annexation of Territory. Other property within the boundaries of the
City may be annexed into the District upon the condition that
parcels within that territory may be annexed only with the
unanimous approval of the owner or owners of each parcel at the
time that parcel or those parcels are annexed.
Section 12. Repayment of Funds Advanced or Work-in-Kind. Pursuant to
Section 53314.9 of the California Government Code, the City
Council proposes to accept advances of funds or work-in-kind from
private persons or private entities and to provide, by resolution for
the use of those funds or that work-in-kind, for any authorized
purpose, including, but not limited to, paying any costs incurred by
the City in creating the District and to enter into an agreement by
resolution, with the person or entity advancing funds or work-in-
kind to repay funds 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.
Section 13. Description of Voting Procedures. The voting procedures to be
followed in conducting the consolidated special elections on (i) the
proposition of the District incurring a bonded indebtedness in an
Page 3 of 5
amount not to exceed $3,500,000; (ii) the proposition with respect
to the levy of special taxes on the land within the District to levy
special taxes within the District to pay the principal of and interest
on the bonds thereof; and (Ili) the proposition with respect to the
establishment of an appropriations limit for District in the amount of
$1,000,000, if the District is established and such consolidated
special elections (the "Consolidated Special Elections") are held,
shall be as follows:
(a) If at least twelve (12) persons have been registered to vote
within the territory of the District for each of the ninety (90)
days preceding the close of the public or protest hearing (the
"Protest Hearing"), the vote in the Consolidated Special
Elections shall be by the registered voters of the District with
each voter having one vote. In that event, the Consolidated
Special Elections shall be conducted by the City Clerk, and
shall be held on a date selected by the City Council in
conformance with the provisions of Section 53326 of the
California Government Code and pursuant to the provisions
of the California Elections Code governing elections of cities,
insofar as they may be applicable, and pursuant to said
Section 53326 the ballots for the Consolidated Special
Elections shall be distributed to the qualified electors of the
District by mail with return postage prepaid or by personal
�-- service, and the Consolidated Special Elections shall be
conducted as a mail ballot election.
(b) If twelve (12) persons have not been registered to vote within
the District for each of the ninety (90) days preceding the
close of the protest hearing, and pursuant to Section 53326
of the California Govemment Code, the vote is therefore to
be by the landowners of the District, with each landowner
within the District of record at the close of the protest hearing
having one vote for each acre or portion of an acre of land
that he or she owns within the District, the consolidated
special elections shall be conducted by the City Clerk
pursuant to Section 53326 of the California Government
Code.
Page 4 of 5
Section 14. Tender of Bonds. This City Council hereby reserves the right, on
behalf of the District to accept tenders of bonds in full or partial
payment of special taxes to be levied within the District pursuant to
the Act.
The procedures for conducting the consolidated special elections,
if they are held, may be determined as the City Council may
determine to be necessary or desirable by a resolution
subsequently adopted by the City Council.
SIGNED, APPROVED AND ADOPTED this 19th day of June, 2008, by the
following vote:
Ayes: Carlson, Mansperger, Stubblefield, Ayres
Nays: None
Abstain: None
Absent: Ritchie
CITY OF SAN J INTO
By:
.� Jim A Mayor
ATTEST:
)V&�J-o
G r
rothy L. 9
houinard, City Clerk
APPROVED AS TO FORM:
A orney, City arSan Jacinto
Best Best & Krieger LLP
Page 5 of 5
EXHIBIT "A"
LEGAL DESCRIPTION
CITY OF SAN JACINTO
COMMUNITY FACILITIES DISTRICT NO. 2008-1
(PARKSIDE)
The property located in the City of San Jacinto, County of Riverside, State of
California identified by Assessors Parcel Numbers 435-190-052 and 435-190-053.
A-1
EXHIBIT "B"
CITY OF SAN JACINTO
`-- COMMUNITY FACILITIES DISTRICT NO. 2008-1
(PARKSIDE)
DESCRIPTION OF FACILITIES
Facilities authorized to be financed by each of City of San Jacinto Community
Facilities District No. 2008-1 (Parkside) include all of the following:
(a) Street improvements including costs of storm drains, grading, paving,
curbs and gutters, sidewalks, street lights, parkways, medians and landscaping related
thereto;
(b) Drainage channel crossing;
(c) Any public facilities authorized to be pursuant to the Mello-Roos
Community Facilities Act of 1982, as amended, Chapter 2.5 (commencing with Section
53311), Part 1, Division 2, Title 5 of the Government Code of the State of California, in
lieu of payment of fees; and
(d) The incidental expenses which will be incurred are: (i) the cost of
engineering, planning and designing such facilities and the cost of environmental
evaluations thereof, (ii) all costs associated with the creation of the proposed community
facilities district, issuance of the bonds thereof, the determination of the amount of and
collection of taxes, the payment of taxes, and costs otherwise incurred in order to carry
out the authorized purposes of the community facilities district, (iii) fees for construction
management in an amount to exceed five percent (5%) of the total costs of the
improvements and (iv) any other expenses incidental to the construction, acquisition,
completion, and inspection of such facilities.
B-1
EXHIBIT "C„
CITY OF SAN JACINTO
}-- COMMUNITY FACILITIES DISTRICT NO. 2008-1
(PARKSIDE)
RATE AND METHOD OF APPORTIONMENT
OF SPECIAL TAX
C-1
RATE AND WTHOD OF APPORTIQNMENT-F'OR:.
COMMUNITY FACILITIES DISTRICT NO,200$-1 (PARKSIDE)'
OF THE CITY OF SAN JACINTO
A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels, in Community
Facilities District No. 2008-1 of the City of. San Jacinto .(Parkside) ("CFD No. 2008=1") and
collected each Fiscal Year commencing in f?' scal Year 2009-10, in an amount determined by the
Councilthrough the application of the Rate and Method of Apportionment as described below. All
ofthe real property in CFD No.20084,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. DEFINITIONS.
The terms thereinafter set forth have the following meanings;
"Acre Qr 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 plait,or other recorded County
parcel snap:
"Act"means the Mello-Roos Community Facilities Act of 1982,as amended,being:Chapter
2.5. Division 2 of Title 5 of the Govern nent Code of the State of California.
�-- "Administrative Expenses" means the following actual or reasonably estimated costs
directly related to the. adminstrntxon of CFD No,2008-1:the costs of computing the Special
Taxes and preparing the annual Special Tax collection.schedules(whether by the City or
designee thereof or both);the costs ofcollectirig:the 88pec3al Taxes(whether by the County
or otherwise);the costs of remitting the Special`faxes tiAhe Trustee; the costs of the Trustee
(including its legal counsel)in thediscliarge of.the duties,required of ituiider the Indenture;
the.costs to the City, CFD No.2008=1 or any designee thereof of complying with arbitrage
rebate requirements; the costs to the City, CFD No. 2008-1 or any designee thereof of
complying with City; GFD No. 200$-1 or obligated persons disclosure requirements
associated with applicable federal and state securities laws and of the Act; the costs
associated with preparing Special Tax disclosure statements and responding to public
inquiries regarding the Special Taxes;the costs of the City,CFD No>2.008-1 or anydesighm
thereof related to an appeal of the Special Tax-the costs associated with the releaseof funds
from any escrow account;and the City
s annualadministration fees and third party expenses.
Administrative Expenses shalt also include amounts estimated or advanced by the City or
CFD No. 2008-1 for any other administrative purposes of CFD No. 2008-1, including
attorney's fees and.other costs related. to commencing and pursuing to completion any
foreclosure of delinquent Special.'Taxes.
"Assessor's.Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an
assigned Assessor's parcel number.
City of San Jacinto dune'10,2008
CFP A`o,2008-f{Parkshk) Pagel
"Assessor's Parcel Map"means an official map of the Assessor of the County designating
parcels by Assessor's parcel.number;
"Assigned Special Tax" meads the Special Tax. for each Land Use Class.of Developed
Property, as determined in accordance with 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 CFD No. 2008-1 under the Act.
"Building Square Footage"'or"Building Square Root"means the total square footage of
the building(s)located on an Assessor's Parcel,measured.from outside wall to outside wall,
exclusive of overhangs,ppwhes,patios:carports,or similar spaces attached to the building.
but generally open on at least two sides,as determined by reference to the building permit(s)
issued for that Asse.ssor's Parcel,or if-these are not available,as otherwise.determined bythe
CFD.Administrator.
'"CFD Administrator" means an official of the City; or designee thereof,responsible for
calculating the Special Tax Requirement and providing for the levy and collection of the
Special.Taxes.
"CFD No.200&1"means Community.Facilities District No.2008-1 (Parkside)of the City,
"City"means the City of'San Jacinto,California.
"Council"means the City Council of the City; acting as the-legislative body of CFD No.
2008-1..
"County" means the County of Riverside.California.
"Developed. Property" means for each Fiscal. Year, all Taxable Property, exclusive of
Taxable Public Property and Taxable Property Owner Association Property, for which a
building permit for new construction was issued after Ja►luary 1,2007 and as of January l of
the previous Fiscal Year.
"Fiscal Year"means the period starting July 1 and ending on the following June 30.
'"Jndenture" means:the indenture, fiscal agent agreement, resolution or other instrument
pursuant to which Bonds are issued,as modified,amended and/or supplemented from-time to
time,
"Industrial. Property" means, for each Fiscal Year,all Assessor's Parcels of Developed
Property for which a building permit was issued for a non-residential use,excluding Office
Property.
City of San Jacinto Duns 10,2009
CFD No. 200.8-1(Parkside) Page 2
"Land Use Class" means any of the classes listed in Table 1 below.
"MaAmum Special Tax"means the Maximui n,SFecial Tax,determined in accordance with.
Section C below,that can be levied.in any Fiscal Year on any Assessor's Parcel.
"Office Property"means all Assessor's Parcels of Developed Property for which a building
permit was issued for eonstrtiction of an office building as detertnined.by reference to the
building pennit(s),or as otheivise determined by the CFD Administrator:
"Outstanding Bonds" means all Bonds which are deemed to'be outstanding under the
It&nture,
"Property Owner Associatlon Property"means,for each? fiscal Year,any property within
the boundaries of CFD No. 2008-1 that was owned by a property owner association,
including any master or sub-association, as of January l of the previous Fiscal Year.
"Proportionately"means, for Developed Property,that the ratio of the actual Special Tax
levy to the Assigned Special Tax is equal for all Assessor's Parcels of Developed Property.
For.Undeveloped Property,"Proportionately"means that the ratio:of the actual.Special Tax
levy per Acre to the Maxim=Special Tax per Acre is equal for all Assessor's parcels of
Undeveloped Property. The term "Proportionately" may similarly be applied to other
categories of Taxable Property as listed in Section D below..
"Public Property"means,for each Fiscal Year, (1) any property within the boundaries of
CFD No. 2008-1 that was owned by or irrevocably offered for dedication to the fcdcxal
government, the State,the City or any other public agency as of January 1 of the previous
Fiscal Year;provided However thatany property leased by a public agency to a private entity
and subject to taxation under Section 53340d of the Act shall be taxed and classified in
accordance.with itfi use; or(ii)any property within the boundaries of CFD No.2008-1'that
was. encumbered, as of January 1 of the previous Fiscal Ycat, by an unmanned utility
easement snaking impractical its utilization for other than the purpose set forth in the
easement.
"Residential Property" means all Assessor's Parcels of Developed Property for which a
building permit has been issued for purposes of constructing one or more residential
dwelling units:
"Special T " means the annual special tax to be levied in.each Fiscal Year on each
Assessor's Parcel of Taxable.Property within CFD No. 2008-1 to fund the Special Tax
Requirement.
"Special Tax-Requirement" means that amount required in any Fiscal Year to.meet the
needs of CFD No, 2008.1 to (i) pay debt service on all Outstanding .Bonds due in the
calendar year that .commences in such Fiscal Year; ( i) pay periodic costs on the Bonds,
including but not limited to,credit enhancement and rebate payments on the Bonds; (iii).pay
Administrative Expenses;(iv)pay any amounts required to establish or replenish any reserve
funds for all Outstanding Bonds; (v) pay directly for acquisition or construction of
City of San Jadwo June 10,Zon
CFD Wo.1008-1(Parkslde) Page 3.
authorized;facilities but only prior to the issuance of Bonds and only to the extent that the.
inclusion,of such amount does not increase the Special Tax levy on Undeveloped Property;
(vi)pay for reasonably anticipated Special Tax .delinquencies based on the delinquency rate.
for the Special Tax lev i ,thepreviousFiscalYear;less(yii)a credit forfuttds available tb
reduce the annual Special Tax levy,as determined by the CFD Administrator pursuant to the
Indenture.
"State" means the State of California.
"Taxable Property"means all of the Assessor's Parcels within the boundaries of CFD No.
2008-1 which are not exempt from ther•Special Tax pursuant to law or Section E below,
"Taxable Property Owner Association. Property" means all Assessor's Parcels of
Property Owner Association Property that are not exempt pursuant to Section E below.
"Taxable Public Property"means all Assessor's Parcels of Public Property that are not
exempt pursuant to Section E below.
"Trustee" means the trustee or fiscal agent under the Indenture:
"Undeveloped Property"means,for each Fiscal Year;all Taxable Property not classified
as Developed Property,.Taxable Public Property or Taxable Property Owner Association
Property:
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal• Years all Taxable Property within. CFD No. 2008-1 shall be classified. as
Developed Property, Taxable Public Property, Taxable Property Owner Association
Property,or Undeveloped Property,andshall be subjeato Special Taxes in acoordance.with
the rate and method of apportionment determined pursuant to Sections C and D below.
C. MAXMIUM:SPECIAL TAX
1. Developed Property
(a). Maximum Special Tax
The Maximum Special: 'Tax for each Assessor's Parcel classified as.
Developed Property shall be the greater of (i)' the amount derived by
appiication of the Assigned Special Tax or (i) the amount derived by
application of the Back-up Special Tax..
(b). Assigned Special Tax
The Fiscal Year 2009-:10 Assigned Special Tax for each Land Use Class is
shown below in Table 1.
City of San Jacinto Jane 10,2008
CFD No.2008:J(ParksIde) Page 4
TAIDLE 1
Assigned Special`faxes. for Developed Property in CFA No. Z.0.084
)Fiscal Year 2009;40,
Land Use Class Descnption' Assigned Special Tax
1 Residential Property $18,887 per Acre
2 Office Property $1.0097.per Building Square Foot
3 Industrial Property $O.b242 per Bnilding Spare Foot
(c). Backup Special Tax
The Fiscal Year 2009-.10 Backup Special Tax for an Assessor's Parcel of
Developed Property shall equal$1807 per Acre,
(d). Increase in the Assined Tax and Backup Speciai.Tax
On.each July 1,commencing.on.July 1,2010,the Assigned Special Tax and.
the Backup Special Tax shall be increased by an amount equal to two percent
(2b/a) of the amount in effect for the previous Fiscal Year.
(e). Mu1t,We Land Use Classes
In some instances an Assessor's Parcel.of.Developed Property may contain
more; than one Land Use Class. The Maximum Special Tax that can be
levied op an Assessor's Parcel shall be the sutra of the Maximum Special.
Taxes:that can be levied for all Land Use Classes located on that Assessor's
Parcel.
2. Undeveloped Property;Taxable Public Property,and Taxable Property Owner
Association Property
(a), Maximum Special Tax
The Fiscal Year 2009-10 Maximum Special Tax for Undeveloped Property,
Taxable Public Property,and Taxable Property Owner AssociationProperty
shall bo$19,489 per Acre.
(b). Increase in the Maximum S eeial Tax
On each July 1,commencing on July 1,2010,the Maximum Special Tax for
Undeveloped Property, Taxable Public Property; and Taxable Property
Owner Association Property shall be increased by an amount equal to two
percent(2%) of the amount in effect.for the previous Fiscal Year.
City of San.Jaeintq jime T 0,1008
CF..DNo.2084(Parkside) Page 5
D. METHOD OF AP.PORTIONMENT;OF THE.SPECIAL TAX
`r Commencin.'g-with Fiscal Year 2009-10 and for each following Fiscal Year,the Council shall
determine the Special Tax Requirement, The Council shall levy the Special Tax-until the
amount of Special faxes equals the Special Tax Requizerrient. The Special Tax shall be
levied each Fiscal Year as follows:
First: The Special Tax shall be levied Proportionately on each Assessor's. Parcel of
Developed Property at up to 100%of the Assigned Special Tax for Developed Property;
Second: If additional monies are needed to satisfy the Special Tax Requirement after the
first step has been completed, the Special Tax shall be levied.Proportionately on each
Assessor's Parcel of Undeveloped Property at up to 100%6 of the Maximum Special Tax fnr
Undeveloped Property;
'Thud: If additional.monies are needed to satisfy. the Special Tax.Requirem.Requirement after the first
two steps havebeen completed,,then the levy of the Special Tax on.each Assessor's Parcel.of
Developed Property-Whose Maximum Spe6al'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;
Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the first
three steps have been completed, then the Special Tax shall be levied Proportionately on
each Assessor's Parcel of Taxable Property Owner Association Property at up to the
`— Maximum Special Tax for Taxable Property Owner Association Property;
Fifth; If additional monies are needed to satisfy the Special Tax.Requirement after the first
four steps have been completed,then the.Special Tax shall be levied Proportionately on each
Assessor's Parcel of Taxable Public Property at up to the Maximum Special.Tax for Taxable
Public Property..
Notwithstanding the above,under no circumstances will the Special Tax:levied against any
Assessor's Parcel ,of`Residex tial Pmperty for which an occupancy permit for private
residential use has been issued be increased by more than ten percent as-a consequence of
delinquency or default by the owner of any other.Assessor's Parcel within CFD No;2008-1,
E. EXEMPTIONS
No Special Tax shall`be levied on up to 3.53 Acres of Public Property and 000 Acres of
Property C)wner Association Property. Tax-exempt status will be irrevocably assigned by
the CFD Administrator in the chronological order in which property becomes Public
Property or Property Owner Association Property. ldowever,should arr Assessor's Parcel no
longer be classified as Public Property or-Property Owner Association Property its tax-
exempt s(atus will'be revoked.
Public Property or Propetty .Owner Association Property that is not exempt from the Special
Tax under this section shalt be subject to the levy of the Special Tax and shall be taxed
City of San J"into June iv,moos
CF0,'Vo..10084 Tarks de) Page 6
Proportionately as park of the fourth or fifth step;as applicable,in Section D above,at up to
100% of the applicable Maximum Special Tax for Taxable Public Property or Taxable
` Property Owner Association Property.
F. APPEALS,AND INTERPRETATIONS.
Any landowner or residentmay file a written appeal of the Special Tax on kis/herproperty
with. CFD Administrator,provided that the appellant is current in his/her payments of
Special Taxes. During the pendency of appeal,all Special Taxes previously levied must
be paid on or before the payment date estabHshedwhen the levy was made. The appeal must
specify the reasons why the appellant claims the Special Tax is in error. The CFD
Admuristrator shall review' the ,appeal;.meet with the appellant if the CFD Administrator
deems necessary, and advise file appellant of its determination, If the CFD Administrator
agrees with the appellant,the CFD Administrator shall eliminate or reduce the Special Tax.
on the, appellant's property and/or provide a refund; to the appellant, if the CFD
Administrator disagrees with the appellant and the appellant is dissatisfied with, the
determination,the appellant then has 30 days in which to appeal to the Council by tiling a
written notice of appeal with the City Clerk,.provided that the appellant is current in his/her
payments of Special Taxes. The secondappeal must specifytbo reasons for its disagreement
with the CFp Administrator's determination,
Interpretations may be. made by the Council by ordinance. or resolution for purposes of
clarifying any vagueness or ambiguity in this hate and Method of Apportionment.
G. MANNER OF COLLECTION
The Special Tax will be collected in the same manner aril at the same time as ordinary ad
valorem property taxes; provided, however, that CFD No. 2008-1 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 bray Covenant to foreclose and may actually
foreclose on delinquent Assessor's Parcels as permitted by the Act.
H. PREPAYMENT OF SPECIAL TAX
The following definition applies to this Section I3
"CFJ),Public means either$2,73 million in 2008 dollars,which shall increaseby
the Consstruction inflation Jndex on July 1,2009,and on each July 1 thereafter,or such lower
number as (i) shall be determined by the CFD Administrator as sufficient to provide the
public facilities to be provided by CFD No. 2008-1 under the authorized bonding program
for CFD No.200$-1,or(ii)shall be determined by the Council concurrently with a c ovenant
that it will not issue any more Bonds to be supported by Special Tax levied under this Rate
and Method of Apportionment as described in Section D.
"Construction Fund" means an account specifically identified in the indenture to hold
funds which are currently available for expenditure to acquire or construct public facilities
eligible under the Act.
City of San Jacinto June 10,1008
CFD No,2008-1(Parkside) Page
"Construction Inflation indox" means the annual percentage change io the Engineering
News-Record Building Cost Index for the Cityof Los Angeles,measured as of the calendar
year which ends in the previous Fiscal.Year, In the event this index ceases to be published,
the Construction Inflation Index shall be another index as determined by the CFD
Administrator that is reasonably comparable to the Engineering News-Record Building Cost
Index for the City of Los Angeles.
"Future Facilities Costs" means the Cl~D Public Facilities minus ()public facility costs.
previously paid from the Construction Fund, (ii) moneys currently on deposit in the
Construction Fund,and(iii)moneys currently on deposit in an escrow find that are expected
to be available to finance facilities costs.
"outstanding Bonds" means, all Previously Issued Bonds which are deemed to be
outstanding under the indenture after the first interest and/or principal payment date
following the current Fiscal Year.
"Previously Issued Bonds" means all Bonds that have been issued by CFD No. 2008-1
prior to the date of prepayment.
1. Prepayment:in Full
The obligation of an Assessor's Parcel to pay the Special'i ax may be prepaid and
permanently satisfied as described herein;provided that prepayment may be made
only for Assessor's Parcels of Developed Property or Undeveloped Property for
which a building permit has been issued; and only if there are no delinquent special
Taxes with respect to such Assessor's Parcel at the.time of prepaytiient. An ownetof
an Assessor's Parcel intending to prepay.the Special Tax obligation shall provide the
CFD Administrator with writtennotice of intent to prepay: Wifhha 30 days of receipt
of such written notice, the CFD Administrator shall notify such owner of the
prepayment amount ofsuch Assessor's ParceI. The CFD Administrator may charge a
reasonable fee for providing this service. Prepayment must be made not less than 45
days prior to the neXt occurring date that notice of redemption of Bonds from the
proceeds of such prepayment may be given to the Trustee pursuant.to the Indenture.
The Special. Tax Prepayment Amount (defined below) shall be calculated as
summarized below (capitalized terms as defined below):
Bond Redemption Amount
plus. Redemption.Premium
plus. Future Facilities Amount
Plus Defeasaace Amount
Plus Administrative Fees and Expenses.
less Reserve Fund Credit.
less Capitalized Interest.Credit
Total; equals Prepayment Amount
GO,of San Jacinto June I0,2008
CPD No.2008-1(Parkside) page 8
As of the proposed date of prepayment, the Special '.Tax Prepayment Amount
....
(defined below) shall be calculated as follows-
Paragraph N.o.
1. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel.
2.. For Assessor's Parcels of Developed Property, compute the Assigned Special Tax
and Backup Special Tax applicable for,the Assessor's Parcel to be prepaid. For
Assessor's Parcels of Undeveloped Property(for which a building permit has been
issued)to be prepaid,compute the Assigned Special Tax and Backup Special Tax for
that Assessor's Parcet as though it was already designated as Developed Property,
based,upon the building permit which has already been issued for that Assessor's
Parcel..
3. (a)Divide the Assigned Special Tax computed:pursuant to paragraph 2 by the total.
estimated Assigned Special Taxes. for CFD No. 20.09-1 based on the Developed
Property Special Taxes which could be charged in the current,Fiscal Year on all
expected development through buildout of CFD No. 2008-1, excluding any
Assessor's Parcels which have been prepaid; and
(b) Divide the Backup Special Tax computed pursuant to paragraph 2 by the
estimated total Backup Special.Taxes at buildout of CFD No,2008-1,excluding any
Assessor's Parcels which have been prepaid:.
4. Multiply the.larger quotient.computed pursuant to paragraph 3(a) or 3(b) by the.
Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and
prepaid(the "Bond Redemption Amount").
5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the
applicable redemption premium(e.g.,the redemption price 100"/0),if any,on the
Outstanding Bonds to be redeemed(the"Redemption Premium").
6. Compute the current:Future.Facilities Costs
7. Multiply the larger quotient computed.pursuant to paragraph 3(4) or 3(b) by the
amount determined pursuant, to paragraph 6 to compute the amount of Future
Facilities Costs to be prepaid(the"Future Facilities Amount").
8. Compute the amount needed to pay interest on the Bond Redemption Amount from
the first bond interest and/or principal payment date following the current Fiscal
Year until the earliest redemption date for the Outstanding Bonds.
9. Determine the Special Tax levied on the Assessor's Parcel in the current Fiscal Year
which has not yet been paid.
City of San Jactnfo June 10,AN
CFD No.2008.1(Parkside) Page.9
10. Compute the minimum amount the CFD Administrator reasonably expects to derive
from the reinvestment of the Special Tax Prepayment Amount less the Future
" Facilities Amount and the Admipj.strattve Fees and Expenses from the date of
prepayment until the redemption date for the Outstanding Bonds to be redeemed with
the prepayment-
It. Add the amounts computed pursuant to paragraphs 8 and 9 and subtract the amount
computed pursuant to paragraph 10 (the"Defeasance Amount"),
12, Verify the administrative fees and expenses of CFD No,20.08-1,including the costs
of computation of the prepayment, the costs to invest the.prepayment proceeds,the
costs of redeeming Bonds, and the costs of recording any notices to evidence the
prepayment and the redemption(the"Administrative Fees and Expenses").
13. If reserve funds for the Qutstanding Bonds, if any,, are. at or. above 100°10 of the
reserve requixeznent(as defined in the Indenture) on the prspaymetit date,A.reserve
fund credit shall be calculated as a reduction in the applicable reserve fund, for the
QutStanding'Bonds to be redeemed pursuant to the prepayment(the"Reserve Fund
Cre.d t'�. No Reserve fund Credit shall be granted if reserve funds:are below I W%0.
of the reserve requirement.
14. If any capitalized interest for the Outstanding Bonds w611 not have been expended at
the time of the first interest and/or principal payment following.the current Fiscal
Year, a capitalized interest credit shall be calculated by wultiplying the larger
'-- quotient computed pursuant to paragraph 3(a)or 3(b)by the expected balance in the
capitalized interest fixed after such first interest and/or principal payment (the
"Capitalized Interest Credit")..
15. The SpeeiaT`Tax.prepayment is equal to the sun of the amounts computed:pursuant
to paragraphs 4, 5, 7, 11 and 12, less the amounts computed pursuant to
paragraphs 1.3 and 14(the "Prepayment.Amount`).
16. From the Prepayment Amount,the amounts computed pursuant to paragraphs 4,5,
11 13 and 14 shall be deposited into the appropriate fund as established under the
Indenture and be used to retire Outstanding Bonds or make debt service payments.
The amount computed pursuant to paragraph 7 shall be deposited into the
Construction Fund. The amount computed pursuant to paragraph 12 shall be retained
by CF13 No. 2008'-1.
The; Speciat Tax Prepayment Amount may be:sufficient to redeem other than a $5,000
increment of Bonds, In such cases,the'increment above$5,000 or integral multiple.thereof
will be retained in the appropriate fund established under the Indenture to be.used with the
next prepayment afbonds or to make debt service payments.
As a result of the payment of the current FF'iscal Year's Special Tax levy as deternuned under
paragraph 9(above);the CFD Administrator shall remove the current Fiscal Year's Special
Tax levy for such Assessnr's Parcel from the County. tax rolls. With respect to any
City of San Jacinto June 10,2008
CFD No,20071(Parkside) Page 10
Assessor's Parcel that is prepaid,the Council shall cause a suitable notice to be recorded in
compliance with the Act,to iadicate the.prepayment of the Special Tax and the release of the
Special Tax lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to
pay the Special Tax shall cease;.
Notwithstanding the foregoing. no Special Tax prepayment shall be allowed unless the
amount of Assigned Special Taxes that maybe levied on Taxable:Property within C D No.
2008-1 (after excluding 3,53 Acres of Public Property and 0.00 Acres of Property Owner
Association Property as set forth in .Section. E) both prior to. and after the proposed'
prepayment is at least 1.1 titres the maximum annual debt service on all Outstanding Honds.
2, Prepayment in Part
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.
Tho amount of the prepayment shall be calculated as in.Section k1.1; except that a partial
prepayment shall be calculated according to the.following formula;
PP =[(PE—AE)x F] +AE
These terms have,the following meaning:.
AE= the Administrative.Pees and Expenses
PP the Partial prepayment'
+-- Pr= the SpEgial Tax Prepayment Amount calculated according to Section li:l
F= the percentage by which the owner of Assessor's Parcels)is partially prepaying
the Special.Tax.
The owner of any Assessor's Parcel who desires such prepayment shall notify the CFD.
Administrator of such owner's intent to partially prepay the Special Tax and the percentage
by which the Special Tax shall be prepaid. The CFD Administrator shall provide the, owner
with a statement of the amount required for the partial prepayment of the Special Tax for at
Assessor's Parcel within thirty(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 fiends remitted to it according to Section K1,and(ii)indicate in.
the.records of CM No.2008-1 that there has been a partial prepayment of the Special Tax
and that a portion of the Special Tax with respect to sueh Assessor's Parcel, equal to the
outstanding percentage(1.00 F)of the remaining Maximum Special Tax;shall continue to
he levied on such Assessor's Parcel pursuant to.Section D.
1. TERM OF SPECIAL TAX
The Special Tax shall be levied for a period not to exceed fifty years commencing with
Fiscal Year 2009-10.
KACLIENT82)San Jac3ntd1Tv161161MidwayD$N.ParkSideV2lvfAlRvfa CFI)2008-1(Parkside)05.4o,
City of San Jacinto. June 70,2008
CFD No.10084(Parksi le) Page 11