HomeMy WebLinkAboutCC AG PKT 2003-12-08 #O _ P A REPORT 6 ' 0,
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AGEND RE O A e
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DATE: December 8, 2003
TO: Honorable Mayor and City Council
THRU: John B. Bahorski, City Manager
FROM: Mac Cummins, AICP, Associate Planner /Special Projects Manager
SUBJECT: AMENDMENT TO RATE AND METHOD OF
APPORTIONMENT OF COMMUNITY FACILITIES
DISTRICT NO. 2002-1 - HERON POINT
SUMMARY OF REQUEST:
That City Council adopt a resolution amending the rate and method of apportionment of
Community Facilities District No. 2002 -1 - Heron Point
BACKGROUND:
When the Hellman Ranch development agreement was signed, it was contemplated that a
CFD would be created to help finance some of the public improvements necessary for the -
effective development of the Hellman Ranch. The CFD will include all parcels located in
the Hellman Ranch development, and will issue bonds to finance certain public
improvements (including certain public improvements normally financed through
development fees). This tax will be paid by homeowners, and the proceeds of the tax will
be used to make debt service payments on the bonds issued by the CFD.
After sensitive cultural items were found on the Heron Point development site, the
California Coastal Commission placed a cease and desist order on the site. The
developer worked through the issues related to their Coastal Permit, and are now ready to
move forward with the project. None of the project approvals are a portion of this
request. Due to the reduction in units at the site, a minor change in the rate and method
of apportionment is necessary. This change closes a loophole that might exist if a
number of homeowners default on their special taxes. This loophole would not ever
affect the City as a whole, but might affect the commonly owned HOA- property within
the development project area. In essence, should a number of homeowners NOT pay their
special assessments, due to the current RMA, certain parcels of HOA land might be
taxed, leaving the burden of the tax on everyone in the tract. Under the new proposal,
this would not be possible, and all homeowners will be taxed appropriately. This change
is required only because of the reduction of total units after the CCC permit was
amended. • .
Agenda Item 0
Z.\Hellman \CFD \STAFF REPORT - CFD - Amendment to RMA doc\MC \12 -02 -03
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Amendment to Rate ad Method o Apportionment o
Community Facilities District No. 2002 -1 - Heron Point
City Council Staff Report
December 8, 2003
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FISCAL IMPACT:
None. All staff time and incidental costs associated with to project will be billed to the
" developer, and the costs of the public facilities and consultants will be paid for with bond
proceeds. The costs of the public improvements will be paid by the special tax
assessment levied against the new homeowners at Heron Point. -
RECOMMENDATION:
That City Council adopt Resolution No. , A Resolution of the City Council of the
City of Seal Beach to Consider Alterations to the Rate and Method of Apportionment of
Special Tax for Community Facilities District No. 2002 -01 (Heron Pointe).
NOTED IF APPROVED:
Mac Cummins, John B. ahorski
Associate Plann .' City ager
Attachments: (1)
1. Resolution No. , A Resolution of the City Council of the City of Seal
Beach to Consider Alterations to the Rate and Method of Apportionment of
Special Tax for Community Facilities District No. 2002 -01 (Heron Pointe)
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STAFF REPORT - CFD - Amendment to RMA 2
Amendment to Rate ad Method o Apportionment o
Community Facilities District No. 2002 -1 - Heron Point
City Council Staff Report
• December 8, 2003
ATTACHMENT 1
RESOLUTION NO. , A RESOLUTION
OF THE CITY COUNCIL OF THE CITY OF
SEAL BEACH TO CONSIDER
ALTERATIONS TO THE RATE AND
METHOD OF APPORTIONMENT OF
SPECIAL TAX FOR COMMUNITY
FACILITIES DISTRICT NO. 2002 -01
(HERON POINTE)
STAFF REPORT - CFD - Amendment to RMA 3
I
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- RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SEAL BEACH TO CONSIDER
ALTERATIONS TO THE RATE AND METHOD OF
APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2002 -01
(HERON POINTE)
RECITALS:
WHEREAS, the CITY COUNCIL (the "City Council ") of the CITY OF SEAL BEACH
(the "City ") has conducted proceedings in accordance with • the Mello -Roos Community
Facilities Act of 1982, as amended, commencing with Section 53311 of the Califomia
Government Code (the "Act "), for the establishment of the City of Seal Beach Community
Facilities District No. 2002 -01 (Heron Pointe) (the "District "); and
WHEREAS, the District was established pursuant to Resolution No. 5063 of the City
, Council, adopted on September 23, 2002 (the "Resolution of Formation "); and
WHEREAS, the Resolution of Formation, among other things, prescribed a rate of
method of apportionment of special tax for the District, as set forth in Exhibit B to the Resolution
of Formation (the "Original RMA "); and
WHEREAS, pursuant to Section 53331 of the Act, the City Council, upon making certain
determinations, is authorized to commence and undertake proceedings to alter the rate and
method of apportionment of special tax for the District; and
WHEREAS, a proposed "Amended and Restated Rate and Method Apportionment for
City of Seal Beach Community Facilities District No. 2002 -01 (Heron Pointe)" (the "Amended
and Restated RMA ") is set forth in Exhibit A attached hereto and is hereby incorporated by
reference.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL
- BEACH DOES • HEREBY RESOLVE, DETERMINE AND ORDER AS
FOLLOWS': -
Section 1. The full name of the District is "City of Seal Beach Community Facilities
District No. 2002 -01 (Heron Pointe)."
Section 2. The territory included in the District is as shown on the map thereof filed in
Book 85 of the Maps of Assessment and Community Facilities Districts at Page 36, in the office
of the County Recorder of the County of Orange, California, which map is hereby incorporated
by reference.
Z. \My Documents\John Lung Homes \Reso of Consideration Amending RMA.DOC \LW \12 -03 -03
City Council Resolution No.
Alterations to Rate and Method of Apportionment of Special Tax for
Community Facilities District No. 2002 -01 (Heron Pointe)
December 8, 2003
Section 3. The City Council hereby determines that public convenience and necessity
require alterations be made to the Original RMA, such that, after the alterations, the rate and
method of apportionment of special tax for the District would read, in its entirety, as set forth in
the Amended and Restated RMA.
Section 4. A public hearing (the "Hearing ") will be held by the City Council at 7:00
P.M., or as soon thereafter as possible, on Monday, January 12, 2004, at the City of Seal Beach
City Hall Council Chambers, 211 Eighth Street, Seal Beach, California, 90740, to consider and
finally determine whether to submit the question of altering the rate and method of
apportionment of special tax for the District as described above to the qualified electors of the
District.
Section 5. The City officer who is or will be responsible for the facilities to be financed
by the District, previously caused to be filed a report with the City Council containing the
following: - _
(a) A brief description of the facilities by type which will in his or her opinion
be required to adequately meet the needs of the District; and
(b) An estimate of the fair and reasonable cost of financing the facilities,
including the cost of acquiring land and easements and any incidental expenses, and including
the costs of the proposed bond financing and all other related costs, as provided for in Section
53345.3 of the Act. Such City officer is hereby directed to cause to be filed with the City
Council a revised report in connection with the Amended and Restated RMA, which is to be
made part of the record of the Hearing. .
Section 6. The City Clerk is hereby directed to publish a notice ( "Notice ") of the Hearing
pursuant. to Section 6061 of the Government Code in a newspaper of general circulation
published in the area of the proposed District. Such Notice shall be substantially in the form
specified in Section 53335 of the Act. Publication of the Notice shall be completed at least 7 •
days prior to the date of the Hearing.
Section 7. The City Clerk is hereby directed to send a copy of the Notice of the Hearing
by first -class mail, postage prepaid, to each registered voter and to each landowner within the
proposed District as shown on the last equalized assessment roll. Mailing of the Notice shall be
completed at least 15 days prior to the date of the Hearing.
Section 8. At the conclusion of the Hearing should the City Council determine to submit
the question of altering the rate and method of apportionment of special tax for the District to the
qualified electors- of the District, the proposed voting procedure at the election will ,be a
landowner vote with each landowner who is the owner of record of land within the District at the
close of the Hearing, or the authorized representative thereof, having one vote for each acre or
Reso of Consideration Amendme RMA 2
57296/1085/754723.3 _
City Council Resolution No.
Alterations to Rate and Method of Apportionment of Special Tax for
Community Facilities District No. 2002 -01 (Heron Pointe)
December 8, 2003
portion thereof owned within the District. Ballots for the special election may be distributed by
mail with return postage prepaid or by personal service.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Seal Beach at a
meeting thereof held on the day of , 2003 by the
following vote:
AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
ABSTAIN: Councilmembers
Mayor
ATTEST:
City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Joanne M. Yeo, City Clerk of the City of Seal Beach, California,. do hereby certify that the
foregoing resolution is the original copy of Resolution Number on file in the office of the
City Clerk, passed, approved and adopted by the City Council of the City of Seal Beach at a regular -
meeting thereof held on the day of , 2003.
City Clerk
Reso of Consideration Amending RMA 3
S7296/1085/754723.3
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City Council Resolution No.
Alterations to Rate and Method of.4pportionment of Tax for -
Community Facilities District No. 2002 -01 (Heron Pointe)
December 8, 2003
EXHIBIT A
AMENDED AND RESTATED RATE AND METHOD OF APPORTIONMENT FOR
CITY OF SEAL BEACH COMMUNITY FACILITIES DISTRICT NO. 2002-01
(HERON POINTE)
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A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels in the City of Seal
Beach Community Facilities District No. 2002 -01 (Heron Pointe) ( "CFD No. 2002-01") and
collected each Fiscal Year commencing in Fiscal Year 2002 -03, in an amount determined by the
City Council of the City of Seal Beach, through the application of the Rate and Method of
Apportionment as described below. All of the real property in CFD No. 2002 -01, 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. 2002 -01: 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 of the Trustee (including its legal counsel) in the discharge of the duties required of
it under the Indenture; the costs to the City, CFD No. 2002 -01 or any designee thereof of
complying with arbitrage rebate requirements; the costs to the City, CFD No. 2002 -01 or
any designee thereof of complying with City, CFD No. 2002 -01 or obligated persons
disclosure requirements associated with applicable federal and state securities laws and of
the Act; the costs" associated with preparing Special Tax disclosure statements and
responding to public inquiries regarding the Special Taxes; the costs of the City, CFD
No. 2002 -01 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
Resn of Consideration Amending RMA 4
S7296/1085/754723.3
City Council Resolution No.
Altercations to Rate and Method of Apportionment of Special Tax for
Community Facilities District No. 2001 -01 (Heron Pointe)
December 8, 2003
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administration fees and third party expenses. Administrative Expenses shall also include
amounts estimated or advanced by the City or CFD No. 2002 -01 for any other
administrative purposes of CFD No. 2002 -01, including attorney's fees and other costs
related to commencing and pursuing to completion any foreclosure of delinquent Special
Taxes.
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"Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an
assigned Assessor's parcel number.
• "Assessor's Parcel Map" means an official map of the County Assessor of the County
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 the City on behalf of CFD No. 2002 -01 under
the Act.
"CFD Administrator" means an official of the City, or designee thereof, responsible for
determining the Special Tax Requirement and providing for the levy and collection of the
Special Taxes.
"CFD No. 2002 -01" means the City of Seal Beach Community Facilities District No.
2002 -01 (Heron Pointe).
"City" means the City of Seal Beach.
"Council" means the City Council of the City.
"County" means the County of Orange.
"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, 2001 and prior to -
January 1 of the prior Fiscal Year.
"Fiscal Year" means the period starting July 1 and ending on the following June 30.
Reso of Consideration Amending RMA 5
S7296/1085/754723.3
City Council Resolution No. -
, Alterations to Rate and Method of Apportionment of Special MIX for ,
Community Facilities District No. 2002 -01 (Heron Pointe)
December 8, 2003
"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.
"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.
"Non- Residential Property" means all Assessors' Parcels of Developed Property for
which a building permit was issued for a non - residential use.
"Outstanding Bonds" means all Bonds which are deemed to be outstanding under the
Indenture.
"Proportionately" means, for Developed Property, that the ratio of the actual Special
Tax levy to the Assigned Special Tax is equal for all Assessors' 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. For Taxable Public Property and Taxable
Property Owner Association 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 Taxable Public Property or Taxable Property Owner Association
Property, as applicable.
"Property Owner Association Property" means, for each Fiscal Year, any property
within the boundaries of CFD No. 2002 -01 that was owned by a property owner
association, including any master or sub - association, as of January 1 of the prior Fiscal
Year.
"Public Property" means, for each Fiscal Year, any property within CFD No. 2002 -01
that is owned by, irrevocably offered for dedication to, or dedicated to the federal
government, the State, the County, the City or any other public agency as of June 30 of
the prior 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. To ensure that property is classified as Public
Property in the first Fiscal Year after it is acquired by, irrevocably offered for dedication
to, or dedicated to a public agency, the property owner shall notify the CFD
Administrator in writing of such acquisition, offer, or dedication not later than June 30 of
the Fiscal Year in which the acquisition, offer, or dedication occurred.
"Residential Floor Area" means all of the square footage of living area within the
perimeter of a residential structure, not including any carport, walkway, garage,
Reso of Consideration Amending RMA 6
S7296/1085/754723.3
City Council Resolution No.
Alterations to Rate and Method of Apportionment of Special Tax for
Community Facilities District No. 2002 -01 (Heron Pointe)
December 8, 2003
overhang, patio, enclosed patio, or similar area. The determination of Residential Floor
Area shall be made by reference to the building permit(s) issued for such Assessor's
P arcel.
"Residential Property" means all Assessors' 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 special tax to be levied in each Fiscal Year on each Assessor's
Parcel of Taxable Property to fund the Special Tax Requirement.
"Special Tax Requirement" means that amount required in any Fiscal Year for CFD
No. - 2002 -01 to: (i) pay debt service on all Outstanding Bonds; (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 CFD No. 2002 -01 facilities eligible under the Act; (vi) pay for reasonably
anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes
levied 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. 2002 -01 which are not exempt from the Special Tax pursuant to law or Section E
below.
"Taxable Property Owner Association Property" means all Assessors' Parcels of
Property Owner Association Property that are not exempt pursuant to Section E below.
"Taxable Public Property" means all Assessors' 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.
Reso of Consideration Amending RMA 7
57296/1085/754723.3
•
City Council Resolution No.
Altercations to Rate and Method ofApportionnient of Special Tax for
Community Facilities District No. 2002 -01 (Heron Pointe)
< December 8, 2003
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, all Taxable Property within CFD No. 2002 -01 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. MAXIMUM 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 2002 -03 Assigned Special Tax for each Land Use Class is
shown below in Table 1.
TABLE 1
Fiscal Year 2002 -03
Assigned Special Taxes for Developed Property in
Community Facilities District No. 2002 -01
(Heron Pointe)
.: ,. .. P . �'.v et,•?�.� t,� • ? "•• ov •- �',": -•. .;� .. _ :.;: �i�„� -, �y Fc'�•: -•�" qty �`.* :z =�' s• `� � � --
, -1 � ' ."%+ •~ �. : Wei : " f ", w 'i°, ''., a. ..
< ,C; X .�' • 4 ; �'+T" �4 ,0 -�^ , •• ` o ' '"�x � .
: L ; and " N • � " - • �� s
�•..�< �4 Y / - A. R.' k ' r ' . � .. y � �<
r - ;.• ;_ . �Y` 4C :a Descnptioil X 6 ; - : Residential` FToot.Area A Tax
" £.. Clas$ ;' > i `.•`�:'». "4..'v'-•: 4. -: 3 °u. e C ',5,4 ` r ` " z * ° 'Al i'c itc ;'•+cti5 ',....: - }
1 Residential Property ? 4,000 s.f. $5,350 per unit
' 2 Residential Property 3,750 — 3,999 s.f. $5,078 per unit _
. 3 Residential Property 3, 500 — 3,749 s.f. $4,900 per unit
4 Residential Property < 3,500 s.f. $4,570 per unit
Reso of Consideration Amending RMA 8
57296/1085/754723.3
City Council Resolution No.
Alterations to Rate and Method of Apportionment of Special Tux for
Community Facilities District No. 2002 -01 (Heron Pointe)
December 8, 2003
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/" ?,. '"`'..".... t%< vim'. i' �K- i.�fzsr :, 5r _ i c'• a _ . a,4 mpc v , E • `'.�!•>^ , , <
,'. w . ...: M ,� r 5 'y,•Y•,, °,z '�` <.. - '• , ; % :t: [" , f<.: , ;r.' -e,
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r'�i':
i(- r�`f;•.' 'Description At _ -.' Residential Floor Area_. '.Assigned;�SpecialTax:
5 Non- Residential Property NA $41,977 per Acre
c. ' Backup Special Tax
The Fiscal Year 2002 -03 Backup Special Tax for an Assessor's Parcel of
Developed Property shall equal $41,977 per Acre.
d. Increase in the Assigned Special Tax and Backup Special Tax
On each July 1, commencing on July 1, 2003 and through and including
July 1, 2012, 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. There will be no increase in the
Assigned Tax or Backup Special Tax subsequent to July 1, 2012.
2. Undeveloped Property, Taxable Public Property, and Taxable Property
• Owner Association Property
a. Maximum Special Tax
The Fiscal Year 2002 -03 Maximum Special Tax for Undeveloped
Property, Taxable Public Property, and Taxable Property Owner
Association Property shall be $47,043 per Acre.
b. Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2003 and through and including
July 1, 2012, 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. There will be no increase in
the Maximum Special Tax for Undeveloped Property, Taxable Public
Property, and Taxable Property Owner Association Property subsequent to
July 1, 2012.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Reso of Consideration Amending. RMA 9
S7296/1085/754723.3
City Council Resolution No.
Alterations to Rate and Method of.4pportionment of Special Tax for
Community Facilities District No. 2002 -01 (Heron Pointe)
December 8, 2003
Commencing with Fiscal Year 2002 -03 and for each following Fiscal Year, the Council
shall determine the Special Tax Requirement and shall levy the Special Tax until the
amount of Special Taxes equal the Special Tax Requirement. The Special Tax shall be
levied each Fiscal Year as follows:
First: The Special Tax shall be levied Proportionately on each Assessor's Parcel of
Developed Property at up to 100% of the applicable Assigned Special Tax;
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
first three steps have been completed, then the Special Tax shall be levied Proportionately
on each Assessor's Parcel of Taxable Property Owner Association Property at up to the
Maximum Special Tax for Taxable Property Owner Association Property; and
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 the CFD.
E. EXEMPTIONS
No Special Tax shall be levied on up to 8.07 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 Property Owner Association _
Property. However, should an Assessor's Parcel no longer be classified as Property
Reso of Consideration Amending RMA 10
57296/1085/754723.3
City Council Resolution Nu.
Alteratzons to Rate and Method of Apportionment of Special Tax for
Community Facilities Distrzct No. 2002 -01 (Heron Pointe)
December 8, 2003
Owner Association Property, its tax - exempt status will be revoked. No Public Property
shall be exempt from Special Tax, except as required by law.
Public Property or Property Owner Association Property that is not exempt from Special
Taxes under this section shall be subject to the levy of the Special Tax and shall be taxed
Proportionately as part of the fourth or fifth step 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 taxpayer 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 calculation of 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 clerk, 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.
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. 2002 -01 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 Cost" means either $3.015 million in 2002 dollars, which shall
increase by the Construction Inflation Index on July 1, 2003, 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. 2002 -01 under the
authorized bonding program for CFD No. 2002 -01, or (ii) shall be determined by the
Reso of Consideration Amending RMA 11
S7296/1085/754723.3
City Council Resolution No
Alterations to Rate and Method ofApportionment of Special Tax for
Community Facilities District No. 2002 -01 (Heron Pointe,)
December 8, 2003
Council concurrently with a covenant that it will not issue any more Bonds to be
supported by Special Taxes 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.
"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 Cost 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. 2002 -01
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.
Reso of Consideration Amending RN1A 12
S7296/1085/754723.3
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City Council Resolution No.
Alterations to Rate and Method of Apportionment of Special Tax for
Community Facilities District No. 2002 -01 (Heron Pointe)
December 8, 2003
The 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
As of the proposed date of prepayment, the 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 pen 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 the entire CFD No. 2002 -01 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. 2002 -01,
excluding any Assessor's Parcels which have been prepaid, and
(b) Divide the Backup Special Tax computed pursuant to paragraph 2 by the
estimated Backup Special Taxes at buildout of CFD No. 2002 -01 using the
Backup Special Tax amount for the current Fiscal Year, 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 ").
Reso of Consideration Amending RMA 13
57296/1085/754723.3
City Council Resolution No.
Alterations to Rate and Method of Apportionment of Special Tax for
Community Facilities District No. 2002 -01 (Heron Pointe)
December 8, 2003
5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the
applicable redemption premium, 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 Taxes levied on the Assessor's Parcel in the current Fiscal
Year which have not yet been paid.
10. Compute the minimum amount the CFD Administrator reasonably expects to
derive from the reinvestment of the Prepayment Amount (as defined below) less
the Future Facilities Amount and the Administrative Fees and Expenses (as
defined below) 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. 2002 -01, 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
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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
Reso of Consideration Amendmg RMA 14
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City Council Resolution No.
Alterations to Rate and Method of Apportionment of Special Tax for
Community Facilities District No. 2002 -01 (Heron Pointe)
December 8, 2003
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. 2002 -01.
The 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 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 Special Taxes 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. 2002 -01 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 =P
Reso of Consideration Amending RMA 15
S7296/1085/754723.3
City Council Resolution No
Alterations to Rate and Method of Apportionment of Special Tar for
Community Facilities District No. 2002 -01 (Heron Pointe)
December 8, 2003
These terms have the following meaning:
PP = the partial prepayment
PE = the 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 Special Tax.
The owner of any Assessor's Parcel who desires such prepayment shall notify the
CFD Administrator of such owner's intent to partially prepay the Special Tax and
the percentage by which the Special Tax shall be prepaid. The CFD
Administrator shall provide the owner with a statement of the amount required for
the partial prepayment of the Special Tax for 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. 2002 -01 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 the period necessary to fully satisfy the Special Tax
Requirement, but in no event shall it be levied after Fiscal Year 2042 -43.
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