HomeMy WebLinkAbout05-01 TPFA Resolution
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RESOLUTION NO. TPFA 05-01
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
TEMECULA PUBLIC FINANCING AUTHORITY OF FORMATION
OF TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 03-02 (RORIPAUGH
RANCH), AUTHORIZING THE LEVY OF A SPECIAL TAX
WITHIN THE DISTRICT, PRELIMINARILY ESTABLISHING AN
APPROPRIATIONS LIMIT FOR THE DISTRICT AND
SUBMITTING LEVY OF THE SPECIAL TAX AND THE
ESTABLISHMENT OF THE APPROPRIATIONS LIMIT TO THE
QUALIFIED ELECTORS OF THE DISTRICT
WHEREAS, on August 24, 2004, this Board of Directors adopted a resolution entitled "A
Resolution of the Board of Directors of the Temecula Public Financing Authority Declaring Its
Intention to Establish a Community Facilities District and to Authorize the Levy of Special Taxes
Therein - Roripaugh Ranch 03-02" (the "Resolution of Intention") stating its intention to form the
Temecula Public Financing Authority Community Facilities District No. 03-02 (Roripaugh
Ranch) (the "District") pursuant to the Mello-Roos Community Facilities Act of 1982, California
Government Code Section 53311 et seq. (the "Law"); and
WHEREAS, the Resolution of Intention, incorporating by reference a map of the
proposed boundaries of the District and describing the public improvements eligible to be
financed by the District (the "Facilities"), and the fixed special assessment lien to be eliminated
by the District (the "Prior Lien"), the cost of financing the costs of the Facilities and of
eliminating the Prior Lien, and the rate and method of apportionment of the special tax to be
levied within the District to pay the cost of financing the costs of the Facilities and of eliminating
the Prior Lien, and to pay the principal and interest on bonds proposed to be issued with
respect to the District, is on file with the Secretary and the provisions thereof are incorporated
herein by this reference as if fully set forth herein; and
WHEREAS, the Resolution of Intention called for a public hearing on the District to be
held on September 28, 2004; and
WHEREAS, on September 28, 2004, this Board of Directors adopted a Resolution
amending the Resolution of Intention (the "Amending Resolution") to add additional facilities
eligible to be funded by the District and to change the date of the public hearing from
September 28, 2004 to November 9, 2004; and
WHEREAS, on November 9, 2004, this Board of Directors opened the public hearing
and continued the public hearing to November 23, 2004, on November 23, 2004 this Board of
Directors opened the continued public hearing and again continued the publiC hearing to
December 7,2004; and
WHEREAS, on December 7, 2004, this Board of Directors opened the continued public
hearing and adopted a resolution making findings of complexity of the District, and then
continued the public hearing to January 11, 2005; and
WHEREAS, on this date, this Board of Directors held the public hearing as required by
the Law and the Resolution of Intention relative to the proposed formation of the District; and
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WHEREAS, at the hearing all interested persons desiring to be heard on all matters
pertaining to the formation of the District, the Facilities eligible to be funded by the District, the
Prior Lien eligible to be eliminated by the District, and the levy of the special tax were heard and
a full and fair hearing was held; and
WHEREAS, at the hearing evidence was presented to this Board of Directors on the
matters before it, including a report by the Director of Public Works of the City of Temecula (the
"Report") as to the Facilities eligible to be funded by the District, the Prior Lien eligible to be
eliminated by the District, and the costs thereof, a copy of which is on file with the Secretary,
and this Board of Directors at the conclusion of the hearing was fully advised regarding the
District; and
WHEREAS, written protests with respect to the formation of the District and/or the
furnishing of specified types of Facilities or other specific purposes of the District as described
in the Report have not been filed with the Secretary by fifty percent (50%) or more of the
registered voters residing within the territory of the District or property owners of one-half (1/2)
or more of the area of land within the District and not exempt from the special tax; and
WHEREAS, at the hearing a technical change was made to the rate and method of
apportionment of special taxes for the District to add a new land classification due to a zoning
change to a small portion of the land in the District, and the revised rate and method of
apportionment is attached to this Resolution as Exhibit A hereto; and
WHEREAS, the special tax proposed to be levied in the District to pay for a portion of
the costs of the Facilities and of the elimination of the Prior Lien, as set forth in Exhibit B to the
Resolution of Intention, has not been eliminated by protest by fifty percent (50%) or more of the
registered voters residing within the territory of the District or the owners of one-half (1/2) or
more of the area of land within the District and not exempt from the special tax.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Temecula
Public Financing Authority as follows:
Section 1. The foregoing recitals are true and correct.
Section 2. The proposed special tax to be levied within the District has not been
precluded by majority protest pursuant to Section 53324 of the Law. On April 10, 2001, this
Board of Directors adopted a resolution approving Local Goals and Policies for Community
Facilities Districts, and this Board of Directors hereby finds and determines that the District is in
conformity with said goals and policies.
Section 3. All prior proceedings taken by this Board of Directors in connection with the
establishment of the District and the levy of the special tax have been duly considered and are
hereby found and determined to be valid and in conformity with the Law.
Section 4. The community facilities district designated "Temecula Public Financing
Authority Community Facilities District No. 03-02 (Roripaugh Ranch)" is hereby established
pursuant to the Law.
Section 5. The boundaries of the District, as described in the Resolution of Intention
and set forth in the boundary map of the District recorded on August 31, 2004 in the Riverside
County Recorder's Office at Book 58 of Maps of Assessment and Community Facilities Districts
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at Page 51 (instrument no. 2004-0691181), are hereby approved, are incorporated herein by
this reference and shall be the boundaries of the District.
Section 6. The type of facilities eligible to be funded by the District pursuant to the Law,
and the fixed special assessment lien eligible to be eliminated by the District pursuant to the
Law, are as described in Exhibit A to the Amending Resolution which Exhibit is by this reference
incorporated herein. This Board of Directors hereby finds that the Facilities are necessary to
meet increased demands placed upon local agencies as the result of development occurring in
the District.
The execution and delivery by the Executive Director or the Chairperson, as applicable,
of (a) a Joint Community Facilities Agreement between the Authority and the City of Temecula
(the "City"), (b) a Joint Community Facilities Agreement between the Authority and the
Temecula Community Services District, (c) a Joint Community Facilities District - EMWD
among the Authority, the Eastern Municipal Water District and Ashby USA, LLC ("Ashby"), (d) a
Joint Community Facilities Agreement among the Authority, the City, Ashby and the County of
Riverside (the "County"), and (e) a Joint Community Facilities Agreement among the Authority,
Ashby, the City, the County and the Riverside County Flood Control and Water Conservation
District, in the respective forms on file with the Secretary, are hereby ratified. This Board of
Directors hereby declares that said Joint Community Facilities Agreements will be beneficial to
residents in the area of the District.
Section 7. Except to the extent that funds are otherwise available to the District to pay
for the Facilities and the elimination of the Prior Lien and/or to pay the principal and interest as
it becomes due on bonds of the District issued to finance the Facilities and the elimination of
the Prior Lien, a special tax sufficient to pay the costs thereof, secured by recordation of a
continuing lien against all non-exempt real properly in the District, will be levied within the
District and collected in the same manner as ordinary ad valorem property taxes or in such
other manner as this Board of Directors shall determine, including direct billing of the affected
property owners. The proposed rate and method of apportionment of the special tax among the
parcels of real property within the District, in sufficient detail to allow each landowner within the
proposed District to estimate the maximum amount such owner will have to pay, are described
in Exhibit A to this Resolution which Exhibit is by this reference incorporated herein. This Board
of Directors hereby finds that the basis for the levy and apportionment of the special tax, as set
forth in the rate and method of apportionment of special taxes, is reasonable.
Section 8. The Treasurer of the Temecula Public Financing Authority, 43200 Business
Park Drive, Temecula, CA 92590, telephone number (909) 694-6430, is the officer of the
Authority that will be responsible for preparing annually and whenever otherwise necessary a
current roll of special tax levy obligations by assessor's parcel number and which will be
responsible for estimating future special tax levies pursuant to Section 53340.2 of the Law.
Section 9. 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 tax shall attach to all nonexempt real property in the District and this lien shall continue
in force and effect until the special tax obligation is prepaid and permanently satisfied and the
lien canceled in accordance with law or until collection of the tax by the Authority ceases.
Section 10. In accordance with Section 53325.7 of the California Government Code,
the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIIIB of the
California Constitution, of the District is hereby preliminarily established at $55,000,000 and
said appropriations limit shall be submitted to the voters of the District as provided below. The
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proposition establishing the appropriations limit shall become effective if approved by the
qualified electors voting thereon and shall be adjusted in accordance with the applicable
provisions of Section 53325.7 of the Law.
Section 11. Pursuant to the provisions of the Law, the proposition of the levy of the
special tax and the proposition of the establishment of the appropriations limit specified above
shall be submitted to the qualified electors of the District at an election, the time, place and
conditions of which election shall be as specified by a separate resolution of this Board of
Directors.
Section 12. This Resolution shall take effect upon its adoption.
PASSED, APPROVED AND ADOPTED, by the Board of Directors of the Temecula
Public Financing Authority at a meeting held on the 11th day of January, 2005.
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Jeff Comerchero, Chairperson
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF TEMECULA )
I, Susan W. Jones, CMC, City Clerk/Authority Secretary of the Temecula Public
Financing Authority, HEREBY DO CERTIFY that the foregoing Resolution No. TPFA 05-01 was
duly adopted at a special meeting of the Board of Directors of the Temecula Public Financing
Authority on the 11th day of January, 2005, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
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AGENCY MEMBERS: Naggar, Roberts, Washington, Comerchero
AGENCY MEMBERS: None
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AGENCY MEMBERS: None
AGENCY MEMBERS: None
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Susan . Jones, CMC
'w Clerk/A hority Secretary
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EXHIBIT A
TEMECULA PUBLIC FINANCING AUTHORITY
COMMUNITY FACILITIES DISTRICT NO. 03-02
(RORIPAUGH RANCH)
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
TEMECULA PUBLIC FINANCING AUTHORITY
A Special Tax shall be levied and collected on all Taxable Property located within the
boundaries of CFD No. 03-02 Temecula Public Financing Authority Community Facilities District
No. 03-02 (Roripaugh Ranch) ("CFD No. 03-02"). The amount of Special Tax to be levied in
each Fiscal Year on a Parcel in CFD No. 03-02, commencing with Fiscal Year 2005-2006, shall
be determined by the CFD Administrator through the application of the procedures described
below. All of the real property in CFD No. 03-02, unless exempted by law or the provisions
herein, shall be taxed for the purposes, to the extent and in the manner herein provided.
A. DEFINITIONS
In addition to the capitalized terms set forth in the preceding paragraph, capitalized
terms used in this Section A shall have the following meanings:
"Acre" means 43,560 square feet of land. The Acres for a Parcel means the land area
of the Parcel as shown on or determined from the applicable Assessor's Parcel Map.
Notwithstanding the foregoing, the Acres attributable to each Parcel of Residential
Property that is (i) located in a Final Map and (ii) an individual single-family home lot or
Condominium shall be computed by the CFD Administrator by dividing the sum of the
land area for all such Parcels of Residential Property in the Final Map by the number of
such Parcels. The Acres for any leasehold or possessory interest shall be the Acres for
the Parcel which corresponds to such leasehold or possessory interest.
"Acreage Special Tax" means the special tax set forth in Section C.2 below.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being
Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of
California.
"Administrative Expenses" means the actual or reasonably estimated costs directly
related to the administration of CFD No. 03-02, including but not limited to the following:
(i) the costs of computing the Special Taxes and of preparing the annual Special Tax
collection schedules (whether by the CFD Administrator or designee thereof, or both);
(ii) the costs of collecting the Special Taxes (whether by the Authority, County, City, or
otherwise); (iii) the costs of remitting the Special Taxes to the fiscal agent or trustee for
any Bonds; (iv) the costs of commencing and pursuing to completion any foreclosure
action arising from delinquent SpeCial Taxes; (v) the costs of the fiscal agent or trustee
(including its legal counsel) in the discharge of the duties required of it under any
Indenture; (vi) the costs of the Authority, City, or designee of complying with arbitrage
rebate and disclosure requirements of applicable federal and State of California
securities laws, the Act, and the California Government Code, including property owner
or Bond owner inquiries regarding the Special Taxes; (vii) the costs associated with the
release of funds from any escrow account; (viii) the costs of the Authority, City, or
designee related to any appeal of a Special Tax; and (ix) an allocable share of the
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salaries of the City staff and City overhead expense directly relating to the foregoing.
Administrative Expenses shall also include amounts advanced by the City or the
Authority for any administrative purposes of CFD No. 03-02.
"Assessor" means the County Assessor of the County of Riverside.
"Assessor's Parcel Map" means an official map of the Assessor designating parcels of
land or Condominium units by number.
"Authority" means the Temecula Public Financing Authority.
"Board of Directors" means Board of Directors of the Authority, acting as the legislative
body of CFD No. 03-02.
"Bonds" means any bonds or other indebtedness (as defined in the Act), whether in one
or more series, the repayment of which is secured by the levy of Special Taxes on
Parcels within CFD No. 03-02.
"CFD Administrator" means the Finance Director of the City, or designee thereof,
responsible for determining the Special Tax Requirement and providing for the levy and
collection of Special Taxes.
"City" means the City of Temecula, California.
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"Condominium" means a residential dwelling unit meeting the statutory definition of a
condominium contained in the California Civil Code, Section 1351, and for which a
condominium plan has been recorded pursuant to California Civil Code, Section 1352.
"County" means the County of Riverside, California.
"Developed Property" means all Parcels of Taxable Property, for which a Final Map was
recorded as of the January 1 and a building permit for new construction was issued as
of the April 1 preceding the Fiscal Year in which the Special Tax is being levied,
exclusive of Property Owner's Association Property and Public Property.
"Dwelling Unit Special Tax" means the special tax set forth in Section C.1 below.
"Exempt Property" means any Parcel located within the boundaries of CFD No. 03-02
which is exempt from the Special Tax pursuant to law or Section E below.
"Final Map" means a subdivision of property by recordation of a (i) final map or parcel
map approved by the City pursuant to the Subdivision Map Act (California Government
Code Section 66410 et seq.), (ii) lot line adjustment approved by the City, or (iii)
condominium plan pursuant to California Civil Code 1352:
"Fiscal Year" means the period starting on each July 1 and ending on the following June
30.
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"Indenture" means the indenture, fiscal agent agreement, trust agreement, resolution or
other instrument pursuant to which Bonds are issued, as modified, amended and/or
supplemented from time to time, and any instrument replacing or supplementing the
same.
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"Land Use" means the land use set forth in the Land Use Plan.
"Land Use Plan" means the approved land use plan for the Specific Plan.
"Lot" means (i) any lot within a Final Map that is located at least partially within the
boundaries of CFD No. 03-02 or (ii) any land within the boundaries of CFD No. 03-02
that is conveyed, dedicated, or otherwise acquired by or irrevocably offered to the
federal government, the State of California, the County, the City, or any local
government or other governmental agency.
"Maximum Special Tax" means the maximum special tax, determined in accordance
with Section C, that can be levied in any Fiscal Year on any Parcel.
"Non-Residential Property" means all Parcels of Taxable Property which are not
classified as Residential Property, Property Owner's Association Property, or Public
Property.
"Parcel" means a parcel (i) which is located at least partially within the boundaries of
CFD No. 03-02 and (ii) to which an Assessor's parcel number is assigned as shown on
an Assessor's Parcel Map.
"Planning Area" means those planning areas designated by number on the Land Use
Plan.
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"Property Owner's Association Property" means (i) any Parcel for which the owner of
record, as determined from the County Assessor's secured tax roll for the Fiscal Year in
which the Special Tax is being levied, is a property owner's association, including any
master or sub-association, (Ii) any Lot located in a Final Map that was recorded as of the
January 1 preceding the Fiscal Year in which the Special Tax is being levied and which,
as determined from such Final Map, is or will be open space, a private park or
recreation facility, or a private street owned by a property owner's association, (iii) any
Lot within a Final Map that is located within the boundaries of CFD No. 03-02 and was
recorded as of the January 1 preceding the Fiscal Year in which the Special Tax is being
levied and any Parcel for which the Land Use is private mini park or private recreation
center, or (iv) any Lot or Parcel which, as of the April 1 preceding the Fiscal Year for
which the Special Tax is being levied, has been conveyed, irrevocably dedicated, or
irrevocably offered to a property owner's association, including any master or sub-
association, provided such conveyance, dedication,. or offer is submitted to the CFD
Administrator prior to the May 1 preceding the Fiscal Year for which the Special Tax is
being levied.
"Proportionately" means that with respect to a given classification of property the ratio of
the Special Tax to the Dwelling Unit Special Tax or Acreage Special Tax, as applicable,
is the same for all Parcels assigned to such classification. For example, levying the
Special Tax Proportionately on Parcels of Developed Residential Properly means that
for all such Parcels the ratio of the Special Tax to the Dwelling Unit Special Tax is the
same.
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"Public Property" means (i) any Parcel for which the owner of record, as determined
from the County Assessor's secured tax roll for the Fiscal Year in which the Special Tax
is being levied, is the federal government, the State of California, the County, the City,
or any local government or other governmental agency, (ii) any property within a Final
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Map that is located within the boundaries of CFD No. 03-02 and was recorded as of the
January 1 preceding the Fiscal Year in which the Special Tax is being levied and which,
as determined from such Final Map, is or will be a public street, (iii) any Lot within a
Final Map that is located within the boundaries of CFD No. 03-02 and was recorded as
of the January 1 preceding the Fiscal Year in which the Special Tax is being levied and
any Parcel for which the Land Use is neighborhood park, sports park, educational,
public institutional, habitat, flood control, or landscape slope, unless such Lot or Parcel
has an underlying residential land use and the applicable public entity has provided
notice to the City that it will not acquire or otherwise take ownership of the Parcel, or (iv)
any Lot or Parcel which, as of the April 1 preceding the Fiscal Year for which the Special
Tax is being levied, has been conveyed, irrevocably dedicated to, or irrevocably offered
to the federal government, the State of California, the County, the City, or any local
government or other governmental agency, provided such conveyance, dedication, or
offer is submitted to the CFD Administrator prior to the May 1 preceding the Fiscal Year
for which the Special Tax is being levied.
"Residential Floor Area" means all of the square footage within the perimeter of a
residential structure, not including any carport, walkway, garage, overhang, patio,
enclosed patio, or similar area as determined from the applicable building permit(s)
issued for such structure as of the April 1 preceding the Fiscal Year in which the Special
Tax is being levied. Such determination shall be final following the final inspection or
certification of occupancy for the dwelling unit(s).
"Residential Property" means all Parcels of Taxable Property, exclusive of Property
Owner's Association Property and Public Property, designated with a residential Land
Use.
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"Special Tax" means the Special Tax levied in each Fiscal Year on each Parcel.
"Special Tax Requirement" means (a) that amount with respect to CFD No. 03-02
required in any Fiscal Year to pay (i) for annual debt service on all outstanding Bonds
due in the calendar year which commences in such Fiscal Year; (ii) periOdiC costs on the
Bonds, including, but not limited to, the costs of remarketing, credit enhancement, and
liquidity facility fees (including such fees for instruments that serve as the basis of a
reserve fund in lieu of cash related to any such Bonds) and rebate payments; (iii) the
Administrative Expenses; (iv) any reasonably anticipated delinquent Special Taxes
based on the delinquency rate for Special Taxes levied in the previous Fiscal Year or
otherwise reasonably expected; (v) any amounts required to establish or replenish any
reserve funds established for the Bonds, and less (b) available funds as directed under
the Indenture.
"Specific Plan" means the Roripaugh Ranch Specific Plan (City of Temecula Resolution
02-112, Ordinance 02-13), as amended.
"Taxable Property" means all Parcels which are not exempt from the Special Tax
pursuant to law or Section E below.
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"Taxable Property Owner's Association Property" means all Parcels of Property Owner's
Association Property which are not exempt from the Special Tax pursuant to law or
Section E below.
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"Taxable Public Property" means all Parcels of Public Property which are not exempt
from the Special Tax pursuant to law or Section E below.
"Undeveloped Property" means all Parcels of Taxable Property which are not classified
as Developed Property, exclusive of Property Owner's Association Property and Public
Property.
B.
ASSIGNMENT TO LAND USE CATEGORY
Each Fiscal Year, commencing with Fiscal Year 2005-2006, all Parcels shall be
classified as either Taxable Property or Exempt Property. Taxable Property shall be
further classified as Residential Property, Non-Residential Property, Taxable Property
Owner's Association Property, or Taxable Public Property. Residential Property and
Non-Residential Property shall be further classified as Developed Property and
Undeveloped Property (hereinafter referred to as "Developed Residential Property,"
"Developed Non-Residential Property," "Undeveloped Residential Property," or
"Undeveloped Non-Residential Property").
For purposes of determining the applicable Dwelling Unit Special Tax, Developed
Residential Property shall be assigned to classifications one through fifteen in Table 1
below based on Residential Floor Area. If a Parcel consists of two or more Lots located
in a Final Map that was recorded as of the January 1 preceding the Fiscal Year for
which the Special Tax is being levied, each such Lot shall be treated as a Parcel and
classified independently of the other; however, the aggregate Special Tax for the Lots
will be levied on the Parcel.
C.
MAXIMUM SPECIAL TAX RATE
The Maximum Special Tax for each Parcel of Developed Residential Property shall be
the greater of the applicable Dwelling Unit Special Tax or Acreage Special Tax. If there
are two or more residential dwelling units located on a Parcel, the applicable Dwelling
Unit Special Tax for such Parcel shall be the sum of the Dwelling Unit Special Tax for
each such residential dwelling unit. The Maximum Special Tax for each Parcel of
Undeveloped Residential Property, Non-Residential Property, Taxable Property Owner's
Association Property, and Taxable Public Property shall be the applicable Acreage
Special Tax.
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1.
Dwelling Unit Special Tax
The Dwelling Unit Special Tax rates are shown in Table 1 below.
TABLE 1
DWELLING UNIT SPECIAL TAX RATES FOR
DEVELOPED RESIDENTIAL PROPERTY
DWELLlN
RESIDENTIAL GUNIT
SPECIAL TAX FLOOR SPECIAL
CLASSIFICATION AREA TAX
1 Residential >5,000 $4,230'
2 Residential >4,400 and <=5,000 $3,995'
3 Residential >4,200 and <-4,400 $3,520'
4 Residential >4,000 and <-4,200 $3,356'
5 Residential >3,800 and <-4,000 $3,192'
6 Residential >3,600 and <=3,800 $3,028
7 Residential >3,400 and <-3,600 $2,865
8 Residential >3,200 and <-3,400 $2,701
9 Residential >3,000 and <=3,200 $2,537'
10 Residential >2,800 and <=3,000 $2,374'
11 Residential >2,600 and <=2,800 $2,210'
12 Residential >2,400 and <=2,600 $2,046'
13 Residential >2,200 and <=2,400 $1,883'
14 Residential >2,000 and <=2,200 $1,719'
15 Residential <=2,000 $1,586'
'Per residential dwelling unit
2. Acreage Special Tax
The Acreage Special Tax rates are shown in Table 2 below.
TABLE 2
ACREAGE SPECIAL TAX RATES
PROPERTY CLASSIFICATION/LAND USE ACREAGE SPECIAL.
Developed and Undeveloped Residential Property
Low Density (L) or Low-Estate Density (L-E) $5,620 Per Acre
Low Medium Density (LM) $17,665 Per Acre
Medium Density Standard (M1) $17,665 Per Acre
Medium Density Clustered (M2) $17,665 Per Acre
Developed and Undeveloped Non-Residential Property $8,247 Per Acre
Taxable Property Owner's Association Property $17,665 Per Acre
Taxable Public Property $17,665 Per Acre
Notwithstanding the above, if the Land Use Plan is amended or the zoning of the Planning
Areas is otherwise amended resulting in a Land Use which is not shown in Table 2 above, then
the Acreage Special Tax rate applicable to each Parcel to which the new Land Use applies shall
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be $17,665. In addition, if at any time subsequent to the issuance of Bonds the Land Use Plan
is amended or the zoning or configuration of the Planning Areas is otherwise amended, the
CFD Administrator shall determine if the Acreage Special Taxes that may thereafter be levied
are less than the sum of estimated Administrative Expenses and one hundred ten percent
(110%) of the maximum annual debt service for outstanding Bonds. If the amended Land Use
Plan, zoning, and/or Planning Area configuration has resulted in such a reduction, then the
Acreage Special Tax for each Parcel to which such amendments apply shall be computed using
the Acreage Special Tax rate(s) previously applicable to such Parcel. If the previous Land Use
for any portion of a Parcel to which the amended Land Use Plan, zoning, and/or Planning Area
configuration applies was not low density (L), low-estate density (L-E), low medium density
(LM), medium density standard (M1), medium density clustered (M2), or neighborhood
commercial (NC) then the applicable Acreage Special Tax rate shall be $17,665.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2005-2006 and for each following Fiscal Year, the CFD
Administrator shall levy the Special Tax on all Taxable Property to fund the Special Tax
Requirement as follows:
First: The Special Tax shall be levied Proportionately on each Parcel of Developed
Property, up to 100% of the applicable Dwelling Unit Special Tax in the case of
Developed Residential Property and up to 100% of the applicable Acreage Special Tax
in the case of Developed Non-Residential Property;
Second: If additional Special Taxes are needed after the first step, the Special Tax shall
be levied Proportionately on each Parcel of Undeveloped Property, up to 100% of the
applicable Acreage Special Tax;
Third: If additional Special Taxes are needed after the second step, the Special Tax for
Parcels of Developed Property for which the Maximum Special Tax is derived from the
applicable Acreage Special Tax shall be increased equally, measured on a percentage
basis, from the amounts levied under the preceding Step 1 up to 100% of the applicable
Acreage Special Tax (i.e., the percentage increase shall be equal for all applicable
Parcels, until the Maximum Special Tax is reached); and
Fourth: If additional Special Taxes are needed after the third step, the Special Tax shall
be levied Proportionately on each Parcel of Taxable Property Owner's Association
Property and Taxable Public Property up to the applicable Maximum Special Tax.
Notwithstanding the above, under no circumstances will the Special Taxes levied
against any Parcel used as a private residence be increased as a consequence of
delinquency or default by the owner of any other Parcel or Parcels within CFD No. 03-02
by more than ten percent (10%) per Fiscal Year. In addition, under no circumstances
will the Acreage Special Tax be levied against Parcels of Developed Residential
Property if the Special Taxes which may be levied pursuant to the first and second steps
above are equal to or greater than sum of estimated Administrative Expenses and one
hundred ten percent (110%) of the then maximum annual debt service for outstanding
Bonds.
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G.
E.
EXEMPTIONS
The Board of Directors shall not levy a Special Tax on up to 511.11 Acres of Property
Owner's Association Property and Public Property. If the total number of Acres of
Property Owner's Association Property and Public Property exceeds 511.11, the
chronological order in which such property is classified will determine which Parcels are
classified as Exempt Property and which are classified as Taxable Property. If a Lot or
Parcel is no longer classified as Property Owner's Association Property or Public
Property, its status as Exempt Property will be revoked.
The following property shall be classified as Property Owner's Association Property or
Public Property, as applicable, at the time CFD No. 03-02 is established and shall count
toward the limitation of 511.11 Acres of Property Owner's Association Property and
Public Property set forth in the preceding paragraph:
. Property Owner's Association Property and Public Property: Lots A and B
(portion of Murrieta Hot Springs Road), Lot 2 (private mini park), Lot 5 (private
recreation center), and Lot 8 (open space) of Tract 29353-1; Lots Hand 5 (open
space), Lots A through G and M through 0 (streets), Lots I, J, and K (flood
control), Lot L (equestrian trail), Lots 2 and 9 (parks), Lots 10 and 11 (school
sites), and Lot 12 (fire station) of Tract 29353-2; and the property described in
and conveyed to the City pursuant to a grant deed dated May 21, 2003 and
recorded with the County as Document Number 2003-371374.
Subject to Section 53317.5 of the Act, if a Lot or Parcel classified as Developed
Residential Property is acquired by a public entity by any means, including by negotiated
transaction, gift, devise, or foreclosure, such Lot or Parcel will notwithstanding anything
else herein be subject to the Special Tax in accordance with the terms for Developed
Residential Property. In addition, if a Parcel of Public Property is leased to a non-
governmental entity, then the leasehold or possessory interest, in accordance with
Section 53340.1 of the Act, shall be subject to the applicable Acreage Special Tax.
F.
MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as
ordinary ad valorem property taxes and shall be subject to the same penalties, the same
procedure, sale and lien priority in the case of delinquency; provided. however, that the
Special Tax may be billed directly and/or may be collected at a different time or in a
different manner if necessary or convenient to meet the financial obligations of CFD No.
03-02, or as otherwise determined by the CFD Administrator. The foreclosure remedies
provided for in the Indenture shall apply upon the nonpayment of the Special Tax.
REVIEW AND APPEALS
Any taxpayer may file a written appeal of the Special Tax levied 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 grant a credit
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to eliminate or reduce future Special Taxes on the appellant's property. No refunds of
previously paid Special Taxes shall be made.
H.
PREPAYMENT OF SPECIAL TAX
1. Full Prepayment- Developed Residential Property, Non-Residential Property,
and Taxable Property Owner's Association Property
The Maximum Special Tax for any Parcel of Developed Residential Property,
Non-Residential Properly, or Taxable Property Owner's Association Property
may be prepaid and permanently satisfied as described herein, provided that a
prepayment may be made only if at the time of the prepayment there are no
delinquent Special Taxes with respect to such Parcel and all other Parcels which
are under the same ownership and located within CFD No. 03-02. An owner of a
Parcel intending to prepay the Maximum Special Tax shall provide the CFD
Administrator with written notice of intent to prepay, and within 10 business days
of receipt of such written notice, the CFD Administrator shall notify such owner of
the non-refundable deposit determined to cover the cost to be incurred by the
CFD No. 03-02 in calculating the prepayment amount. Within 10 business days
of receipt of such non-refundable deposit, the CFD Administrator shall notify
such owner of the prepayment amount. Prepayment must be made not less
than 60 days prior to any redemption date, unless otherwise authorized by the
CFD Administrator, for any Bonds to be redeemed with the prepayment
proceeds.
The "Full Prepayment Amount" means an amount equal to the sum of (1) Bond
Redemption Amount, (2) Redemption Premium, (3) Defeasance Amount, and (4)
Fees, less the Reserve Fund Credit, where the terms "Bond Redemption
Amount," "Redemption Premium," "Defeasance Amount," "Fees," and "Reserve
Fund Credit" have the following meanings:
"Bond Redemption Amount" means the principal amount of Bonds to be
redeemed and equals the greater of (a) the quotient derived by dividing
(i) the applicable Dwelling Unit Special Tax, in the case of Residential
Property, or Acreage Special Tax, in the case of Non-Residential
Property or Taxable Property Owner's Association Property by (ii) the
sum of the aggregate Dwelling Unit Special Taxes (for Residential
Property) and Acreage Special Taxes (for Non-Residential Property) for
CFD No. 03-02 (and excluding from (ii) any Special Taxes which have
been prepaid) or (b) the quotient derived by dividing (iii) the applicable
Acreage Special Tax by (iv) the sum of the aggregate Acreage Special
Taxes (for Residential Properly and Non-Residential Property) for CFD
No. 03-02 (and excluding from (iv) any Special Taxes which have been
prepaid) in each case multiplied by the principal amount of outstanding
Bonds rounded up to the nearest $5,000. The aggregate special taxes
under (a) and (b) above means the aggregate special taxes upon
completion of the development of CFD No. 03-02. Prior to the completion
of the development of CFD No. 03-02, the aggregate special taxes under
(a) and (b) above shall be as projected by the CFD Administrat?r.
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"Redemption Premium" means the Bond Redemption Amount multiplied
by the applicable redemption premium, if any, for the Bonds to be
redeemed.
"Defeasance Amount" means the amount needed to pay interest on the
Bond Redemption Amount until the earliest redemption date for the
outstanding Bonds. Credit shall be given for any portion of the Special
Tax heretofore paid by the Parcel for which the Full Prepayment Amount
is being calculated and which will be, but has not yet been, utilized to pay
interest and principal on the Bonds.
"Fees" equal the fees and expenses of CFD No. 03-02 related to the Full
Prepayment Amount, including, but not limited to, the costs of computing
the Full Prepayment Amount, the costs of redeeming Bonds, and the
costs of recording any notices to evidence that the Maximum Special Tax
has been prepaid.
2.
"Reserve Fund Credit" shall equal the lesser of (i) the reduction in the
applicable "Reserve Requirement," as such term is defined in the
Indenture, if any, following the redemption of Bonds from proceeds of the
Prepayment Amount or (ii) the amount derived by subtracting the new
Reserve Requirement, in effect after the redemption of Bonds from
proceeds of the Full Prepayment Amount from the balance in the
"Reserve Fund," as such term is defined in the Indenture, on the
prepayment date, but in no event shall such amount be less than zero.
The CFD Administrator shall remove any portion of the Special Tax which has
been enrolled but not paid. With respect to any Parcel that has prepaid the
Maximum SpeCial Tax, the Board of Directors shall cause a suitable notice to be
recorded in compliance with the Act, to indicate the prepayment of the Maximum
Special Tax and the release of the Special Tax lien on such Parcel, and the
obligation of such Parcel to pay the Special Tax shall cease.
Partial Prepayment - Developed Property, Non-Residential Property, and
Taxable Property Owner's Association Property
The Maximum Special Tax for any Parcel of Developed Residential Property,
Non-Residential Property, or Taxable Property Owner's Association Property
may be prepaid in part as described herein, provided that (i) the Bond
Redemption Amount must be an integral multiple of $5,000 and (ii) at the time of
the prepayment there are no delinquent Special Taxes with respect to such
Parcel and all other Parcels which are under the same ownership and located
within CFD No. 03-02. The "Partial Prepayment Amount" shall be computed
using the methodology in Section H.1 and substituting the portion of the
Maximum Special Tax to be prepaid by the Parcel for its Dwelling Unit Special
Tax and Acreage Special Tax when determining the Bond Redemption Amount.
The owner intending to prepay a portion of the Maximum Special Tax shall notify
the CFD Administrator in writing of (i) such owner's intent to partially prepay the
Maximum Special Tax, (ii) the percentage by which the Maximum Special Tax
shall be prepaid, and (iii) the company or agency that will be acting as the
escrow agent, if applicable, and within 10 business days of receipt of such
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written notice, the CFD Administrator shall notify such owner of the non-
refundable deposit determined to cover the cost to be incurred by CFD No. 03-02
in calculating the amount of the partial prepayment. Within 10 business days of
receipt of such non-refundable deposit, the CFD Administrator shall notify such
owner of the Partial Prepayment Amount. Prepayment must be made not less
than 60 days prior to any redemption date, unless authorized by the CFD
Administrator, for any Bonds to be redeemed with the prepayment proceeds.
With respect to any Parcel that has prepaid a portion of the Maximum Special
Tax, the CFD Administrator shall indicate in the records of CFD No. 03-02 that
there has been a partial prepayment of the Maximum Special Tax, the amount of
the Maximum Special Tax which has been prepaid, and the amount of the
Maximum Special Tax which continue to be levied on such Parcel.
The Bond Redemption Amount, Redemption Premium, Defeasance Amount, and
Reserve Fund Credit shall be used to pay interest on and redeem Bonds in
accordance with the Indenture. Notwithstanding the foregoing, no prepayment
shall be allowed unless the amount of Maximum Special Taxes that may be
levied in CFD No. 03-02 after the proposed prepayment is at least the sum of (i)
the estimated Administrative Expenses and (ii) one hundred ten percent (110%)
of the annual debt service on the Bonds, taking into account the amount of
Bonds to remain outstanding after such prepayment.
The Maximum Special Tax shall be levied for a period not to exceed 50 Fiscal Years,
commencing with Fiscal Year 2005-2006.
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