HomeMy WebLinkAboutResolution - 3197 STATE OF CALIFORNIA ) RESOLUTION NO. 3197
COUNTY OF RIVERSIDE)
CITY OF SAN JACINTO )
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN
JACINTO ESTABLISHING COMMUNITY FACILITIES DISTRICT
NO. 2008-1 (PARKSIDE) OF THE CITY OF SAN JACINTO, COUNTY OF
RIVERSIDE, STATE OF CALIFORNIA, THEREOF
WHEREAS, the City Council (the "City Council") of the City of San Jacinto
(the "City") has heretofore adopted Resolution No. 3185 stating that a community
facilities district to be known as "Community Facilities District No. 2008-1 (Parkside) of
the City of San Jacinto, County of Riverside, State of California" (the "District'), is
proposed to be established 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"), and fixing the time and
place for a public hearing on the establishment of the District; and
WHEREAS, the District is proposed to be formed for the purposes of
financing 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 result of the development of real property within the District described in
Exhibit A attached hereto and hereby incorporated; and
WHEREAS, the City Council desires to levy special taxes and issue bonds
of the District, the proceeds of which will be used to (a) finance the cost of acquisition,
construction, furnishing equipping and maintenance of public facilities listed in Exhibit
°B° hereto (the "Facilities"); (b) paying the debt service on the bonds issued; and (c)
paying the incidental expenses associated with the creation of the District, 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 therein, as more fully described herein;
WHEREAS, the City Council has determined that it will be in the public
interest and beneficial to the future residents of the District that it be authorized to incur
bonded indebtedness to finance the Facilities; and
WHEREAS, notice was published and mailed to the owners of all of the
property in the District as required by law relative to the intention of the City Council to
establish the District, the levy of special taxes therein, the provision of the Facilities
therein and the incurring of a bonded indebtedness by the District, and of the time and
place of the public hearing; and
Page 1 of 8
WHEREAS, on August 7, 2008, at the time and place specified in the
published and mailed notices, the City Council conducted a public hearing as required
by law relative to the establishment of the District, the levy of special taxes therein, the
provision of public facilities therein, and the incurring of a bonded indebtedness by the
District; and
WHEREAS, prior to the commencement of the hearing there was filed
with the City Council a report (the "Report") containing a description of the public
facilities and services required to meet the needs of the District, and an estimate of the
cost of financing such Facilities, as required by Section 53321.5 of the California
Government Code; and
WHEREAS, at the public hearing all persons desiring to be heard on all
matters pertaining to the establishment of the District, the levy of the special taxes, the
provision of the Facilities therein, and the incurring of the bonded indebtedness therefor
were heard, and a full and fair hearing was held; and
WHEREAS, at the public hearing evidence was presented to the City
Council on the matters before it, and the City Council at the conclusion of the hearing
was fully advised as to all matters relating to the establishment of the District, the levy of
the special taxes, the provision of the Facilities and the incurrence of the bonded
indebtedness therefore; and
WHEREAS, the City Council may therefore proceed to establish the
District; and
WHEREAS, the City Clerk has advised the City Council that she has
received a statement from the Registrar of Voters of the County of Riverside that there
are no persons registered to vote in the territory of the District.
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED
BY THE CITY COUNCIL OF THE CITY OF SAN JACINTO AS FOLLOWS:
Section 1. Findings. The City Council finds as follows:
(a) All of the preceding recitals are true and correct;
(b) On June 19, 2008, the City Council adopted
Resolution No. 3185 which, pursuant to Section
53350 of the California Government Code, designated
and declared its intention to issue bonds and levy
special taxes within the District to finance the
construction, acquisition, furnishing and equipping of
certain public facilities;
(c) On August 7, 2008, pursuant to notice thereof duly
given as provided by law, the City Council conducted
a public hearing with respect to the establishment of
Page 2 of 8
the District, the incurrence of a bonded indebtedness
by and for the District, the annual levy of specked
special taxes on the taxable property within the
District to pay principal of and interest on bonds to be
issued by and for the District to finance the Facilities
and other obligations which are described in Section 3
hereof;
(d) The boundary map of the District was recorded on
July 8, pursuant to Sections 3111 and 3113 of the
California Streets and Highways Code, at pages 26
and 27 in Book 73 of Maps of Assessment and
Community Facilities Districts, and as Instrument No.
2008-0369205, in the official records of the County of
Riverside.
(e) All prior proceedings with respect to the establishment
of the District prior to and during the hearing with
respect to the establishment of the District which was
conducted by the City Council on August 7, 2008,
were valid and in conformity with the requirements of
the Act;
(f) No written protests were received at or prior to the
time of the hearing, against the establishment of the
District, or the levying of the special taxes, or the
incurrence of a bonded indebtedness by the District,
and the special taxes have, therefore, not been
eliminated by majority protest pursuant to Section
53324 of the California Government Code;
(g) The City Council is, therefore, authorized to adopt a
resolution of formation pursuant to Section 53325.1 of
the California Government Code for the establishment
of Community Facilities District No. 2008-1 (Parkside)
of the City of San Jacinto, County of Riverside, State
of California; and
(h) Twelve (12) persons have not been registered to vote
within the territory of the District for each of the
90 days preceding the close of the protest hearing on
August 7, 2008, and pursuant to Section 53326 of the
California Government Code, the vote in the
consolidated special elections provided for in Section
12 hereof shall, therefore, be by the landowners of the
District whose property would be subject to the
special taxes if they were levied at the time of the
Page 3 of 8
election, and each landowner shall have one vote for
each acre, or portion thereof, which he or she owns
within the District which would be subject to the
proposed special taxes if they were levied at the time
of the election.
Section 2. Establishment of District. Community Facilities District
No. 2008-1 (Parkside) of the City of San Jacinto, County of
Riverside, State of California, is hereby established. The
boundaries of the District are set forth and shown on the
map entitled 'Boundaries of Community Facilities District
No. 2008-1 (Parkside) of the City of San Jacinto, County of
Riverside, State of California," (the "Boundary Map") which is
on file with the City Clerk, and those boundaries are hereby
established.
Section 3. 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 4. Special Taxes. Except where funds are otherwise available,
special taxes in the District sufficient to pay costs for
additional Services, to pay directly for the Facilities, and 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.
Pursuant to Section 53340 of the California Government
Code, said special taxes shall be collected in the same
manner as ordinary ad valorem property taxes are collected
and shall be subject to the same penalties and the same
procedure, sale, and lien priority in case of delinquency as is
provided for ad valorem taxes.
Page 4 of 8
Upon recordation of a notice of special tax lien pursuant to
Section 3114.5 of the California Streets and Highways Code,
a continuing lien to secure each levy of the special taxes
shall attach to all nonexempt real property in the District and
that lien shall continue in force and effect until the special tax
obligation is prepaid and permanently satisfied and the lien
cancelled in accordance with law or until collection of the
special taxes ceases. The office of the City Manager,
located at 595 S. San Jacinto Blvd., Building A, San Jacinto,
CA 92583, is designated as the office responsible for
preparing annually a current roll of special tax levy
obligations by assessor's parcel numbers, and for estimating
future special tax levies pursuant to Section 53340.2 of the
California Government Code.
Section 5. Exempt Property. Pursuant to Section 53340 of the
California Government Code, and except as provided in
Section 53317.3 of said Code, properties of entities of the
state, federal, and local governments shall be exempt from
the levy of special taxes. In the event that a portion of the
property within the District shall for any reason be or become
exempt, wholly or partially, from the apportionment and levy
of the special taxes pursuant to Exhibit "A" hereto, the City
Council shall, on behalf of the District, increase the amount
of special taxes to the extent necessary and permitted by
law and these proceedings to be levied upon the remaining
property within the District which is not exempt in order to
provide 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.
Section 6. Necessity. The Facilities are necessary to meet increased
demands placed upon the City as a result of new
development occurring within the boundaries of the District.
Section 7. Bonded Indebtedness. The District shall be authorized to
incur bonded indebtedness in an amount not to exceed
$3,500,000.
Pursuant to Section 53350 of the California Government
Code, all proceedings for purposes of a bond election with
respect to the portion of the bonded indebtedness and for
the purpose of levying special taxes for the payment of the
principal of and interest on the bonds which may be issued
and sold to represent such bonded indebtedness and to
finance the design, construction and acquisition of the
Facilities.
Page 5 of 8
Section 8. Report. The Report is hereby approved and is made a part
of the record of the public hearing regarding the formation of
the District, and is ordered to be kept on file with the City
Clerk as part of the transcript of these proceedings.
Section 9. 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 10. 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 agreements, by resolution, with
the persons or entities advancing the funds or work-in-kind
to repay funds advanced, or to reimburse the persons or
entities for the value, or cost, whichever is less, of the work-
in-kind, as determined by the City Council.
Section 11. Prohibition of Owner Contracts. Pursuant to Section
53329.5 of the California Government Code, the City Council
finds that the public interest will not be served by allowing
the owners of property within the District to enter into a
contract in accordance with subdivision (a) of that section,
and that such owners shall not be permitted to elect to
perform the work and enter into a written contract with the
City Council for the construction of the Facilities pursuant to
Section 53329.5 of the California Govemment Code.
Section 12. Description of Voting Procedures. The voting procedures to
be followed in conducting the consolidated special elections
on (i) the proposition of the District to incur a bonded
indebtedness in an amount not to exceed $3,500,000 within
the District, (ii) the proposition with respect to the levy of
special taxes on the land within the District to pay the
principal of and interest on the bonds thereof to finance the
Facilities, (iii) the proposition with respect to the
establishment of an appropriations limit for the District in the
amount of $1,000,000 if the community facilities district is
established and such consolidated special elections (the
Page 6 of 8
"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 territory of the District for each of the
ninety (90) days preceding the close of the protest
hearing, and pursuant to Section 53326 of the
California Government 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.
Section 13. 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.
Page 7 of 8
SIGNED, APPROVED AND ADOPTED this 7th day of August, 2008, by
the following vote:
Ayes: Carlson, Mansperger, Potts, Stubblefield, Ayres
Nays: None
Abstain: None
Absent: None
CITY OF SAN JACINTO
By:
im Ayr ayor
ATTEST:
orothy L. ouinard, City Clerk
APPROVED AS TO FORM:
BEST, BEST & KRIEGER LLP
effr y S. Ballinge , City Attorney
Page 8 of 8
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.
Page A-1
EXHIBIT "B"
CITY OF SAN JACINTO
COMMUNITY FACILITIES DISTRICT NO. 2008-1
(PARKSIDE)
LIST 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) Construction management fee in an amount not to exceed five
percent (5%) of the total cost of improvement; and
(e) 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, and (iii) any other
expenses incidental to the construction, acquisition, completion, and inspection of such
facilities.
Page B-1
EXHIBIT "C"
CITY OF SAN JACINTO
COMMUNITY FACILITIES DISTRICT NO. 2008-1
(PARKSIDE)
RATES AND METHOD OF APPORTIONMENT OF
THE SPECIAL TAX
Page C-1
RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO.2008-1(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 Fiscal Year 2009-10, in an amount determined by the
Council through the application of the Rate and Method of Apportionment as described below. All
ofthe real property in CFD No.2008-1,unless exempted by law or by the provisions hereof,shall be
taxed for the purposes,to the extent and in the manner herein provided.
A. DEFINITIONS
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 County
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.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 of collecting the Special Taxes(whether by the County
or otherwise);the costs of remitting the Special Taxes to the Trustee;the costs ofthe Trustee
(including its legal counsel)in the discharge of the duties required of it under 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, CFD No. 2008-1 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 ofthe City,CFD No.2008-1 or any designee
thereof related to an appeal of the Special Tax;the costs associated with the release of funds
from any escrow account;and the City's annual administration fees and third party expenses.
Administrative Expenses shall 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 Jachdo June 10,2008
CFD No.2008-1(Parkdde) Page 1
"Assessor's Parcel Map"means an official map of the Assessor of the County designating
parcels by Assessor's parcel number.
"Assigned Special Tax" means 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 Foot"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,porches,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 Assessor's Parcel,or if these are not available,as otherwise determined by the
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.2008-1"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 January 1,2007 and as of January I of
the previous Fiscal Year.
"Fiscal Year" means the period starting July I and ending on the following June 30.
"Indenture" 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 June 10,1008
CFD Na 1008-1(Parkside) Page 2
"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 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 construction of an office building as determined by reference to the
building permit(s), or as otherwise determined by the CFD Administrator.
"Outstanding Bonds" means all Bonds which are deemed to be outstanding under the
Indenture.
"Property Owner Association 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 1 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 Maximum 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, (i)any property within the boundaries of
CFD No. 2008-1 that was owned by or irrevocably offered for dedication to the federal
government,the State,the City or any other public agency as of January 1 of the previous
Fiscal Year,provided however that any property leased by a public agency to a private entity
and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in
accordance with its use; or(ii)any property within the boundaries of CFD No.2008-1 that
was encumbered, as of January 1 of the previous Fiscal Year, by an unmanned utility
easement making 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 Tax" 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, (ii) 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
Cky of San Jacinto June 10,2008
CFD No.2008-1(Parkside) 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 levy in the previous Fiscal Year;less(vii)a credit for funds available to
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 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 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 Year, 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,and shall be subject to Special Taxes in accordance With
the rate and method of apportionment determined pursuant to Sections C and D below.
C. MAIOMUM 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
application of the Assigned Special Tax or (ii) the amount derived by
application of the Backup 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 June 10,2008
CFD No.2008-1(Pard vW) Page 4
TABLE 1
Assigned Special Taxes for Developed Property in CFD No.2008-1
Fiscal Year 2009-10
Land Use Class Description Assigned Special Tart
1 Residential Property $18,887 per Acre
2 Office Property $1.6697 per Building Square Foot
3 Industrial Property $0.6242 per Building Square Foot
(c). Backup Special Tax
The Fiscal Year 2009-10 Backup Special Tax for an Assessor's Parcel of
Developed Property shall equal $18,887 per Acre.
(d). Increase in the Assigned Special Tax and Backup Special 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
(2%)of the amount in effect for the previous Fiscal Year.
(e). Multiple 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 on an Assessor's Parcel shall be the sum 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 Association Property
shall be$19,489 per Acre.
(b). Increase in the Maximum Special 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 Jacinto June 10,2008
CFD Na 2008-I(Parkside) Page 5
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing 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 Taxes equals the Special Tax Requirement. The Special Tax shall be
Ievied 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%of the Maximum Special Tax for
Undeveloped Property;
Third: If additional monies are needed to satisfy the Special Tax Requirement 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;
Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the fast
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 Residential Property 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 0.00 Acres of
Property Owner 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. However,should an Assessor's Parcel no
Ionger he classified as Public Property or Property Owner Association Property its tax-
exempt status will be revoked.
Public Property or Property Owner Association Property that is not exempt from the Special
Tax under this section shall be subject to the levy of the Special Tax and shall be taxed
City of San Jacinto June 10,2008
CFD No.2008-1(Parkside) Page 6
Proportionately as part 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 resident may file a written appeal of the Special Tax on his/her property
with the CFD Administrator,provided that the appellant is current in his/her payments of
Special Taxes. During the pendency of an appeal,all Special Taxes previously levied must
be paid on or before the payment date established when the levy was made. The appeal must
specify the reasons why the appellant claims the Special Tax is in error. The CFD
Administrator shall review the appeal, meet with the appellant if the CFD Administrator
deems necessary, and advise the 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 filing a
written notice of appeal with the City CIerk,provided that the appellant is current in his/her
payments of Special Taxes. The second appeal must specify the reasons for its disagreement
with the CFD Administrator's determination.
Interpretations may be made by the Council by ordinance or resolution for purposes of
clarifying any vagueness or ambiguity in this Rate and Method of Apportionment.
G. MANNER OF COLLECTION
The Special Tax will be collected in the same manner and 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 may 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 H:
"CFD Public Facilities"means either$2.73 million in 2008 dollars,which shall increase by
the Construction Inflation Index 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.2008-1,or(ii)shall be determined by the Council concurrently with a covenant
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 10,2008
CFD No.2008-I(ParksW) Page 7
"Construction 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 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 CFD Public Facilities minus(i)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 fund 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 Tax may be prepaid and
permanently satisfied as described herein;provided that a 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 prepayment. An owner of
an Assessor's Parcel intending to prepay the Special Tax obligation shall provide the
CFD Administrator with written notice of intent to prepay. Within 30 days of receipt
of such written notice, the CFD Administrator shall notify such owner of the
prepayment amount of such Assessor's Parcel. 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 Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
Total: equals Prepayment Amount
City of San Jacudo June 10,2008
CFD No.2008-1(ParWde) Page 8
As of the proposed date of prepayment, the Special Tax Prepayment Amount
(defined below)shall be calculated as follows:
Paragraph No.:
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 Parcel 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. 2008-1 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 atbuildout 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%),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(a) 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 Jacinto June 10,2008
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 Administrative Fees and Expenses from the date of
prepayment until the redemption date for the Outstanding Bonds to be redeemed with
the prepayment.
11. 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.2008-1,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 Outstanding Bonds, if any, are at or above 100% of the
reserve requirement(as defined in the Indenture)on the prepayment date,a reserve
fund credit shall be calculated as a reduction in the applicable reserve fund for the
Outstanding Bonds to be redeemed pursuant to the prepayment(the"Reserve Fund
Credit'). No Reserve Fund Credit shall be granted if reserve funds are below 100%
of the reserve requirement.
14. If any capitalized interest for the Outstanding Bonds will 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 multiplying the larger
quotient computed pursuant to paragraph 3(a)or 3(b)by the expected balance in the
capitalized interest fund after such first interest and/or principal payment (the
"Capitalized Interest Credit").
15. The Special Tax prepayment is equal to the sum of the amounts computed pursuant
to paragraphs 4, 5, 7, 11 and 12, less the amounts computed pursuant to
paragraphs 13 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 CFD No. 2008-1.
The Special 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 of bonds or to make debt service payments.
As a result of the payment of the current Fiscal Year's Special Tax levy as determined under
paragraph 9(above),the CFD Administrator shall remove the current Fiscal Year's Special
Tax levy for such Assessor's Parcel from the County tax rolls. With respect to any
City of San Jacinto June 10,2008
CFD No.2008-1(Parkdde) Page 10
Assessor's Parcel that is prepaid,the Council shall cause a suitable notice to be recorded in
compliance with the Act,to indicate 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 may be levied on Taxable Property within CFD 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 times the maximum annual debt service on all Outstanding Bonds.
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.
The amount of the prepayment shall be calculated as in Section H.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 Fees and Expenses
PP— the partial prepayment
PE= the Special Tax Prepayment Amount calculated according to Section H.1
F= the percentage by which the owner of the Assessor's Parcel(s)is partially prepaying
the Special4'ax.
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 an
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 funds remitted to it according to Section H.1,and(ii)indicate in
the records of CFD 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 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 pursuant to Section D.
TERM OF SPECIAL TAX
The Special Tax shall be levied for a period not to exceed fifty years commencing with
Fiscal Year 2009-10.
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CFD No.2008-1(Parkside) Page 11