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HomeMy WebLinkAbout16-01 TPFA Resolution RESOLUTION NO. TPFA 16-01 ' A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY INTERPRETING THE PREPAYMENT OF SPECIAL TAX PROVISIONS OF THE RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR THE TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 03-02 (RORIPAUGH RANCH) THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY DOES HEREBY RESOLVE AS FOLLOWS: Section 1. This Board of Directors of the Temecula Public Financing Authority (the "Authority") is the legislative body for the Temecula Public Financing Authority Community Facilities District No. 03-02 (Roripaugh Ranch) (the "District') and is authorized under the proceedings to form the District and the Mello-Roos Community Facilities Act of 1982, constituting Section 53311 et seq. of the California Government Code (the "Law") to levy special taxes (the "Special Taxes") on real property within the District pursuant to a Rate and Method of Apportionment of Special Tax (the `Rate and Method") approved by this Board of Directors and the qualified electors of the District under the Law at the time of formation of the District. ' Section 2. On April 27, 2006, the Authority issued, for and on behalf of the District, $51 ,250,000 principal amount of its Temecula Public Financing Authority Community Facilities District No. 03-02 (Roripaugh Ranch) 2006 Special Tax Bonds (the "Bonds"), and the debt service on the Bonds is payable from the Special Taxes levied on real property in the District. Section 3. Following the issuance of the Bonds, a portion of the property in the District, commonly referred to as the "Panhandle Area," has undergone substantial development, while the other portion of the property in the District, commonly referred to as the "Pan Area," has yet to be developed. Section 4. The two current owners of the property in the Pan Area have requested that this Board of Directors undertake proceedings to form a new community facilities district under the provisions of the Law in order to provide funds that may be applied to the prepayment of the Special Taxes authorized to be levied for the District on property in the Pan Area, as well as to raise additional funds to finance public infrastructure improvements necessary for the development of the property in the Pan Area. Section 5. This Board of Directors has been advised that if the property owners in the Pan Area are permitted to prepay the Special Taxes on the property in the Pan ' Area, thereby resulting in the redemption of a portion of the outstanding Bonds with proceeds of such prepayment, an opportunity will arise to refund the remaining outstanding principal of the Bonds at lower interest rates, and thereby result in future lower Special Tax levies on property in the Panhandle Area. TPFA Resos 16-01 1 Section 6. The Rate and Method contains provisions that allow for the ' prepayment of the Special Taxes on parcels of property in the District classified under the Rate and Method as Developed Residential Property, Non-Residential Property or Taxable Property Owner's Association Property. Also, while the Rate and Method does not prohibit the prepayment of the Special Taxes on parcels of property in the District classified under the Rate and Method as Undeveloped Property, it does not currently include provisions for the calculation of the prepayment amount for any such prepayment. Section 7. This Board of Directors now desires to interpret the Rate and Method to include provisions needed to calculate the prepayment amount so that the owners of Undeveloped Property, including the owners of the property in the Pan Area, may prepay the Special Taxes in full on parcels of Undeveloped Property, subject to the conditions in Section 8 below. Section 8. This Board of Directors, acting as the legislative body of the District, hereby interprets the Rate and Method to allow for full prepayment of the Maximum Special Tax on Undeveloped Property; provided, however, that (a) in applying the requirements of Section H (Prepayment of Special Tax) of the Rate and Method to any such prepayment of the Maximum Special Tax for a parcel of Undeveloped Property, the term "Bond Redemption Amount" shall mean the principal amount of the Bonds to be redeemed equal to the quotient derived by dividing the applicable Acreage Special Tax for the Parcels (as defined in the Rate and Method) for which the prepayment is to be made, by the sum of the applicable Acreage Special Tax applied to all Taxable Property in the District (excluding any Taxable Property for which the Maximum Special Tax has theretofore been prepaid), multiplied by the principal amount of the outstanding Bonds, rounded up to the nearest $5,000; and (b) any such prepayment of the Maximum Special Tax may only occur in connection with a redemption in whole of any then outstanding Bonds. Section 9. This Board of Directors hereby finds and determines that the foregoing interpretation of the prepayment provisions of the Rate and Method is fair and reasonable with respect to all of the owners of the Taxable Property in the District and, if fully utilized by the owners of the property in the Pan Area of the District, will result in lower future Special Tax levies on Taxable Property in the Panhandle Area of the District than if such prepayment does not occur. Section 10. This Board of Directors hereby authorizes and directs the Executive Director and other appropriate officers of the Authority (a) to prepare and record in the Office of the County Recorder of the County of Riverside an appropriate supplement to the Notice of Special Tax Lien heretofore so recorded for the District, in a form to be prepared by Bond Counsel, to memorialize this Board of Directors' interpretation of the Rate and Method in Section 8 above and (b) to, from and after the date of adoption of this Resolution, administer the Special Tax under the Rate and Method in accordance with the Rate and Method as interpreted by this Board of Directors in Section 8 above. Section 11 . This Resolution shall take effect upon its adoption. TPFA Resos 16-01 2 PASSED, APPROVED, AND ADOPTED by the Board of Directors of the Temecula Public Financing Authority this 22nd day of March, 2016. )A Michael S. Naggar, hair ATTEST: Randi Jo I, ecretary [SEAL] 1 TPFA Resos 16-01 3 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Randi Johl, Secretary of the Temecula Public Financing Authority, do hereby certify that the foregoing Resolution No. TPFA 16-01 was duly and regularly adopted by the Board of Directors of the Temecula Public Financing Authority at a meeting thereof held on the 22nd day of March, 2016, by the following vote: AYES: 3 BOARD MEMBERS: Edwards, McCracken, Rahn NOES: 0 BOARD MEMBERS: None ABSTAIN: 0 BOARD MEMBERS: None ABSENT: 2 BOARD MEMBERS: Comerchero, Naggar Randi Johl, Secretary TPFA Resos 16-01 4