Resolution Number 08-08-05-05RESOLUTION NO. 08-08-05- 05
' RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY
OF SAN JUAN CAPISTRANO TO ESTABLISH COMMUNITY FACILITIES
DISTRICT NO. 2008-1 (VENTANAS BUSINESS CENTER) OF THE CITY
OF SAN JUAN CAPISTRANO AND TO AUTHORIZE THE LEVY OF A
SPECIAL TAX TO PAY COSTS OF ACQUIRING OR CONSTRUCTING
CERTAIN FACILITIES, ADMINISTERING THE DISTRICT AND DEBT
SERVICE ON BONDED INDEBTEDNESS
WHEREAS, on or about August 8, 2008, the City of San Juan Capistrano (the
"City") received a petition signed by the owner of all of the land within the boundaries of
the territory which is proposed for inclusion in a proposed community facilities district
which meets the requirements of Sections 53318 and 53319 of the Government Code of
the State of California; and
WHEREAS, the City Council of the City (the "City Council") desires to adopt this
resolution of intention as provided in Section 53321 of the Government Code of the
State of California to establish a community facilities district consisting of the territory
described in Exhibit "A" hereto and incorporated herein by this reference, which the City
Council hereby determines shall be known as "Community Facilities District No. 2008-1
of the City of San Juan Capistrano (Ventanas Business Center)" ("Community Facilities
' District No. 2008-1" or the "District") pursuant to the Mello -Roos Community Facilities
Act of 1982, as amended, commencing with Section 53311 of the Government Code
(the "Act') to finance (1) the purchase, construction, expansion, improvement or
rehabilitation of certain real or other tangible property described in Attachment "B"
hereto and incorporated herein by this reference in lieu of the payment of related impact
fees related to the Ventanas Business Center Project and (2) payment of acquisition
costs of certain real or other tangible property described in Exhibit "B" hereto and
incorporated herein by this reference ((1) and (2), collectively, comprising the
"Facilities"), which Facilities have a useful life of five years or longer, and (3) the
incidental expenses to be incurred in connection with financing the Facilities and
forming and administering the District (the "Incidental Expenses"); and
WHEREAS, the City Council further intends to approve an estimate of the costs
of the Facilities and the Incidental Expenses for Community Facilities District No. 2008-
1; and
WHEREAS, it is the intention of the City Council to consider financing the
Facilities and Incidental Expenses through the formation of Community Facilities District
No. 2008-1 and, as to impact fees to fund authorized Facilities and certain Incidental
Expenses, the sale of bonds in an amount not to exceed $7,500,000 (the "Obligations"),
and the levy of a special tax to pay for the Facilities and the Incidental Expenses and to
pay debt service on the bonded indebtedness, provided that the bond sale and special
' tax levy are approved at an election to be held within the boundaries of Community
Facilities District No. 2008-1; and
Page 1 of 17 08-05-2008
THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO HEREBY
FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS:
SECTION 1. The above recitals are true and correct.
SECTION 2. A community facilities district is proposed to be established under
the terms of the Act. It is further proposed that the boundaries of the community
facilities district shall be the legal boundaries as described in Exhibit "A" hereto, which
boundaries shall, upon recordation of the boundary map for the District, include the
entirety of any parcel subject to taxation by the District, and as depicted on the map of
the proposed Community Facilities District No. 2008-1 which is on file with the City
Clerk. The City Clerk is hereby directed to sign the original map of the District and
record it with all proper endorsements thereon with the County Recorder of the County
of Orange within 15 days after the adoption of this resolution, all as required by
Section 3111 of the Streets and Highways Code of the State of California.
SECTION 3. The name of the proposed community facilities district shall be
"Community Facilities District No. 2008-1 of the City of San Juan Capistrano (Ventanas
Business Center)." The facilities to be maintained and the Facilities proposed to be
provided within Community Facilities District No. 2008-1 are public facilities as defined
in the Act which the City is authorized by law to construct, acquire, own and operate.
The City Council hereby finds and determines that the description of the Facilities herein
is sufficiently informative to allow taxpayers within the proposed District to understand
what the funds of the District may be used to finance. The Incidental Expenses
expected to be incurred include the cost of planning and designing the Facilities, the
costs of forming the District, issuing bonds and levying and collecting a special tax
within the proposed District.
SECTION 4. The City Council hereby finds that the proposed Facilities are
necessary to meet increased demands placed upon the District as a result of
development occurring in the District. The Facilities may be acquired from one or more
of the property owners as completed public improvements or may be constructed from
bond or special tax proceeds. All or a portion of the Facilities may be purchased with
District funds as completed public facilities pursuant to Section 53314.9 of the Act
and/or constructed with District funds pursuant to Section 53316.2 of the Act. Any
portion of the Facilities may be financed through a lease or lease -purchase
arrangement if the District hereafter determines that such arrangement is of benefit to
the District.
SECTION 5. Except where funds are otherwise available, it is the intention of the
City Council to levy annually in accordance with the procedures contained in the Act a
special tax, secured by recordation of a continuing lien against all nonexempt real
property in the District, sufficient to pay for: (i) the Facilities and Incidental Expenses;
and (ii) the principal and interest and other periodic costs on bonds or other
indebtedness issued to finance the Facilities and Incidental Expenses, including the
establishment and replenishment of any reserve funds deemed necessary by the
District, and any remarketing, credit enhancement and liquidity facility fees (including
Page 2 of 17 08-05-2008
such fees for instruments which serve as the basis of a reserve fund in lieu of cash).
' The rate and method of apportionment and manner of collection of the special tax (the
"RMA") is described in detail in Exhibit "C" attached hereto, which Exhibit "C" is
incorporated herein by this reference. Exhibit "C" allows each landowner within the
District to estimate the maximum amount that may be levied against each parcel. In the
first year in which such special tax is levied, the levy shall include an amount sufficient
to repay to the District all amounts, if any, transferred to the District pursuant to Section
53314 of the Act and interest thereon.
SECTION 6. If special taxes of the District are levied against any parcel used for
private residential purposes, (i) the maximum special tax rate shall not be increased
over time except that it may be increased by an amount not to exceed two percent per
year to the extent permitted in the RMA, (ii) such tax shall be levied for a period
necessary to fully satisfy the Special Tax Requirement (defined in Exhibit "C), but in no
event shall it be levied for Facilities after a period not to exceed 45 years commencing
in FY 2008-2009, as further described in Exhibit "C" hereto, and (iii) under no
circumstances will such special tax within the District be increased as a consequence of
delinquency or default by the owner of any other parcel or parcels within such the
District by more than ten percent.
SECTION 7. The special tax is based on the expected demand that each parcel
of real property within proposed Community Facilities District No. 2008-1 will place on
' the Facilities and on the benefit that each parcel derives from the right to access the
Facilities. The City Council hereby determines that the proposed Facilities are
necessary to meet the increased demand placed upon the City and the existing
infrastructure in the City as a result of the development of the Property. The City
Council hereby determines the rates and methods of apportionment of the special tax
set forth in Exhibit "C" to be reasonable. The special tax is apportioned to each parcel
on the foregoing basis pursuant to Section 53325.3 of the Act and such special tax is
not on or based upon the value or ownership of real property. In the event that a portion
of the property within the District shall become for any reason exempt, wholly or
partially, from the levy of the special tax specified on Exhibit "C", the City Council shall,
on behalf of Community Facilities District No. 2008-1, cause the levy to be increased,
subject to the limitation of the maximum special tax for a parcel as set forth in Exhibit
"C", to the extent necessary upon the remaining property within the District which is not
delinquent or exempt in order to yield the special tax revenues required for the purposes
described in this Section 5. The obligation to pay special taxes may be prepaid as
provided in the RMA.
SECTION 8. A public hearing (the "Hearing") on the establishment of the
proposed Community Facilities District No. 2008-1, the proposed rates and methods of
apportionment of the special tax and the proposed issuance of bonds to finance the
Facilities and the Incidental Expenses shall be held at 7:00 p.m., or as soon thereafter
as practicable, on September 16, 2008, at the City Council Chambers, 32400 Paseo
' Adelanto, San Juan Capistrano, California. Should the City Council determine to form
the District, a special election will be held to authorize the issuance of the bonds and the
levy of the special tax in accordance with the procedures contained in Government
Page 3 of 17 08-05-2008
Code Section 53326. If held, 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 portion thereof owned within the proposed District. Ballots for the
special election may be distributed by mail or by personal service.
SECTION 9. At the time and place set forth above for the Hearing, the City
Council will receive testimony as to whether the proposed Community Facilities District
No. 2008-1 shall be established and as to the method of apportionment of the special
tax and shall consider:
(a) if an ad valorem property tax is currently being levied on property
within proposed Community Facilities District No. 2008-01 for the exclusive purpose of
paying principal of or interest on bonds, lease payments or other indebtedness incurred
to finance construction of capital facilities; and
(b) if the capital facilities to be financed and constructed by Community
Facilities District No. 2008-1 will provide the same services as were provided by the
capital facilities mentioned in subsection (a); and
(c) if the City Council makes the findings specified in subsections (a)
and (b) above, it will consider appropriate action to determine that the total annual
amount of ad valorem property tax revenue due from parcels within Community
Facilities District No. 2008-1, for purposes of paying principal and interest on the debt
identified in subsection (a) above, shall not be increased after the date on which
Community Facilities District No. 2008-1 is created, or after a later date determined by
the City Council with the concurrence of the legislative body which levied the property
tax in question.
SECTION 10. At the time and place set forth above for the Hearing, any
interested person, including all persons owning lands or registered to vote within
proposed Community Facilities District No. 2008-1, may appear and be heard.
SECTION 11. Each District officer who is or will be responsible for
providing the Facilities within proposed Community Facilities District No. 2008-1, if it is
established, is hereby directed to study the proposed District and, at or before the time
of the above-mentioned Hearing, file a report with the City Council containing a brief
description of the public facilities by type which will in his or her opinion be required to
meet adequately the needs of Community Facilities District No. 2008-1 and an estimate
of the cost of providing those public facilities and an estimate of the fair and reasonable
cost of any Incidental Expenses to be incurred.
SECTION 12. The District may accept advances of funds or work -in-kind
from any source, including, but not limited to, private persons or private entities, for any
authorized purpose, including, but not limited to, paying any cost incurred by the District
in creating Community Facilities District No. 2008-1. The District may enter into an
agreement with the person or entity advancing the funds or work -in-kind, to repay all or
a portion of the funds advanced, or to reimburse the person or entity for the value, or
cost, whichever is less, of the work -in-kind, as determined by the City Council, with or
without interest. District is hereby authorized to reimburse Centra Realty Corporation
Page 4 of 17 08-05-2008
for moneys advanced pursuant to that certain the Reimbursement Agreement entered
' into by and between the developer and the City, but only under the circumstances
permitting reimbursement under such Reimbursement Agreement.
SECTION 13. The City Clerk is hereby directed to publish a notice (the
"Notice") of the Hearing pursuant to Section 6061 of the Government Code in a
newspaper of general circulation published in the area of proposed Community
Facilities District No. 2008-1. The City Clerk is further directed to mail a copy of the
Notice to each of the landowners within the boundaries of the District at least 15 days
prior to the Hearing. The Notice shall contain the text or a summary of this Resolution,
the time and place of the Hearing, a statement that the testimony of all interested
persons or taxpayers will be heard, a description of the protest rights of the registered
voters and landowners in the proposed district and a description of the proposed voting
procedure for the election required by the Act. Such publication shall be completed at
least seven (7) days prior to the date of the Hearing.
SECTION 14. The reasonably expected maximum principal amount of the
Obligations is Seven Million Five Hundred Thousand Dollars ($7,500,000).
SECTION 15. Except to the extent limited in any bond resolution or trust
indenture related to the issuance of bonds, the City Council hereby reserves to itself all
rights and powers set forth in Section 53344.1 of the Act (relating to tenders in full or
partial payment).
' SECTION 16. This Resolution shall be effective upon its adoption.
PASSED, APPROVED AND ADOPTE this 5�h da of 9;1.6t, 2008.
I_1
JOE SbTO, MA
R. MONAHAN, CITY CLERK
Page 5 of 17 08-05-2008
EXHIBIT A
TERRITORY
PROPOSED BOUNDARIES OF
CITY OF SAN JUAN CAPISTRANO
COMMUNITY FACILITIES DISTRICT NO. 2008-1
(VENTANAS BUSINESS CENTER)
COUNTY OF ORANGE
STATE OF CALIFORNIA
DOCSOC/ 1285363v9/022658-0023
(1) Filed in the office of the City Clerk of the the City of Ban
Juan Capistrano this _ day of , 2008.
Meg Monahan, MMC
City Clerk, City of San Juan Capistrano
(2) I hereby certify that the within map showing the proposed
boundaries of City of San Juan Capistrano Community Facilities
District No. 2008-1 (Ventanas Business Center), County of
Orange, State of California, was approved by the Council of
the City of San Juan Capistrano at a regular meeting thereof,
held on this day of 2005, by its
Resolution No.
Meg Monahan, MMC
City Clerk, City of San Juan Capistrano
666-131
686-131.15
666-131-09
131-07
1�1_,R
Proposed Boundaries of City of
• ME W as ON San Juan Capistrano Community
Facilities District No. 2008-1
(Ventanas Business Center),
orange County, California
Assessor Parcel Line
666 -131 -nn Assessor Parcel Number
Filed this day of , 2008, at the hour
of o'clock �m, in Book of Maps of
es
Asssment antl Community Facilities Districts at Page
and as Instrument No. in
the office of the County Recorder in the County of
Orange, State of California.
Tom Daly
Clerk -Recorder, County of Orange
By _
Deputy
Fee
EXHIBIT B
Types of Facilities and Incidental Expenses'
to Be Financed by Community
Facilities District No. 2008-1
[August 5, 2008]
Phase I Phase 2
Description of Fees and Improvements (a) Total 102,100 SF 123,400 SF
Offsite Imorovements
Calle Arroyo Street Improvements
$ 40,329
$ 40,329
$
Multi Purpose Trail
121,168
121,168
Estimated Soft Costs & Contingency
52,865
52,865
Total Offsite Improvements
$ 214,362
$ 214,362
$
On -Site Improvements:
8" Well Fill Line
$ 71,906
$ 71,906
$
12" Water Line
26,123
26,123
18" Sewer Line
173,072
173,072
Estimated Soft Costs & Contingency
88,749
88,749
Total On -Site Improvements
$ 359,850
$ 359,850
$
Water and Sewer Fees:
Sewer Capacity Fee & Connection Fee
$ 625,086
$ 283,021
$ 342,065
Water Capital Improvement Charge
108,240
48,974
59,266
Water Storage Fee
162,360
73,461
88,899
Water Capacity Charge
142,065
64,278
77,787
'
Meter Installation Fee
3,615
2,169
1,446
Non -Domestic Water Fee
172,011
172,011
Total Water and Sewer Fees
$ 1,213.377
$ 643,914
$ 569,463
City Impact Fees:
Capistrano Circulation Fee
$ 1,443,200
$ 653,440
$ 789,760
Estimated Traffic Fairshare Fees
360,000
360,000
-
Agricultural Preservation Fee
20,000
20,000
Drainage Area Fee
23,751
23,751
Total Impact Fees
$ 1,846,951
$ 1,057,191
$ 789,760
Project Management (10% of Hard Costs)
$ 43,260
$ 43,260
$ -
Subtotal Fees and Improvements
$ 3,677,800
$ 2,318,577
$ 1,359,223
10% Proposed Community Wide Facilities Charge
$ 367,780
$ 231,858
$ 135,922
Total CFD Fees and Improvements
S 4,045.580
$ 2.550.435
1.495.145
Footnotes:
(a) Amounts represent estimates only and are subject to change.
Additionally, the proposed phasing of development
described
herein is conditioned upon approval by the City Council of a
modification to Condition #74b of Architectural Control 07-01.
If modification is not approved, or is approved at a level
different than described herein, the phasing
of the estimated
Facilities costs will be adjusted to conform to Condition #74b, or the approved modification,
as applicable.
DOCSOC/ 1285363v9/022658-0023
EXHIBIT C
RATE AND METHOD OF APPORTIONMENT FOR
CITY OF SAN JUAN CAPISTRANO
COMMUNITY FACILITIES DISTRICT NO. 2008-1
(VENTANAS BUSINESS CENTER)
A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels in the City of San Juan
Capistrano Community Facilities District No. 2008-1 (Ventanas Business Center) ("CFD No. 2008-
1 ") and collected each Fiscal Year commencing in Fiscal Year 2008-2009, in an amount determined
by the City Council of the City of San Juan Capistrano, through the application of the Rate and
Method of Apportionment as described below. All of the real property in CFD No. 2008-1, unless
exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the
manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's
Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown
on the applicable final map, parcel map, condominium plan, or other recorded County parcel
map.
"Act" means the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter
2.5, Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means the following actual or reasonably estimated costs
directly related to the administration of CFD No. 2008-1: the costs of computing the Special
Taxes and preparing the annual Special Tax collection schedules (whether by the City or
designee thereof or both); the costs of collecting the Special Taxes (whether by the County or
otherwise); the costs of remitting the Special Taxes to the Trustee; the costs 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. 2008-1 or any designee thereof of complying with arbitrage
rebate requirements; the costs to the City, CFD No. 2008-1 or any designee thereof of
complying with City, CFD No. 2008-1 or obligated persons disclosure requirements
associated with applicable federal and state securities laws and of the Act; the costs
associated with preparing Special Tax disclosure statements and responding to public
inquiries regarding the Special Taxes; the costs of the City, CFD No. 2008-1 or any designee
thereof related to an appeal of the Special Tax; the costs associated with the release of funds
from an escrow account; and the City's annual administration fees and third party expenses.
Administrative Expenses shall also include amounts estimated or advanced by the City or
CFD No. 2008-1 for any other administrative purposes of CFD No. 2008-1, including
attorney's fees and other costs related to commencing and pursuing to completion any
foreclosure of delinquent Special Taxes.
"Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an
assigned Assessor's parcel number.
DOC SOC/ 1285363 v9/022658-0023
' "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 Assessor's Parcel of Developed
Property, as determined in accordance with Section C below.
"Backup Special Tax" means the Special Tax applicable to each Assessor's Parcel of
Developed Property, as determined in accordance with Section C below.
"Bonds" means any bonds or other debt (as defined in Section 53317(d) of the Act), whether
in one or more series, issued by CFD No. 2008-1 under the Act.
"Building Square Footage" or "Building Square Foot" means the total building square
footage of the building(s) located on an Assessor's Parcel, measured from outside wall to
outside wall, exclusive of overhangs, porches, patios, garages, carports, or similar spaces
attached to the building. The determination of Building Square Footage shall be made by
reference to the building permit(s) issued for such Assessor's Parcel, or as otherwise
determined by the CFD Administrator.
"CFD No. 2008-1" means the City of San Juan Capistrano Community Facilities District
No. 2008-1 (Ventanas Business Center).
' "City" means the City of San Juan Capistrano.
"CFD Administrator" means an official of the City, or designee thereof, responsible for
calculating the Special Tax Requirement and providing for the levy and collection of the
Special Taxes.
"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 prior to March 1 of the prior Fiscal Year.
"Fiscal Year" means the period starting July 1 and ending on the following June 30.
"Indenture" means the indenture, fiscal agent agreement, resolution or other instrument
pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to
time.
"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 Assessor's Parcels of Developed Property for which
a building permit(s) was issued for a non-residential use.
DOCSOC/ 1285363 v9/022658-0023
"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 Assessor's Parcels of Developed Property.
For Undeveloped Property, "Proportionately" means that the ratio of the actual Special Tax
levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor's Parcels of
Undeveloped Property.
"Property Owner Association Property" means any property within the boundaries of
CFD No. 2008-1 that is owned by or irrevocably dedicated to a property owner association,
including any master or sub -association.
"Public Property" means any property within the boundaries of CFD No. 2008-1 that is (i)
used for rights-of-way or any other purpose and is owned by or irrevocably offered for
dedication to the federal government, the State of California, the County, the City or any
other public agency or (ii) encumbered by an unmanned utility easement making impractical
its utilization for other than the purpose set forth in the easement, 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.
"Residential Property" means all Assessor's Parcels of Developed Property for which a
building permit has been issued for purposes of constructing one or more residential dwelling
units.
"Special Tax" means the 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.
2008-1 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 construction of CFD No. 2008-1
facilities eligible under the Act to the extent that the inclusion of such amount does not
increase the Special Tax levy on Undeveloped Property; and (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.
2008-1 which are not exempt from the Special Tax pursuant to law or Section E below.
"Taxable Property Owner Association Property" means all Assessor's Parcels of Property
Owner Association Property that are not exempt pursuant to Section E below.
"Taxable Public Property" means all Assessor's Parcels of Public Property that are not
exempt pursuant to Section E below.
DOCSOC/ 1285363v9/022658-0023
"Trustee" means the trustee or fiscal agent under the Indenture.
"Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as
Developed Property, Taxable Public Property or Taxable Property Owner Association
Property.
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, all Taxable Property within CFD No. 2008-1 shall be classified as
Developed Property (which shall be further classified as Residential Property or Non -
Residential 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 RATE
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 2008-2009 Assigned Special Tax for each Land Use Class is
shown below in Table 1.
TABLE 1
Assigned Special Taxes for Developed Property in CFD No. 2008-1
(A) Fiscal Year 2008-2009
C. Backup Special Tax
The Fiscal Year 2008-2009 Backup Special Tax for an Assessor's Parcel of
' Developed Property shall equal $35,743 per Acre.
DOCSOC/ 1285363 v9/022658-0023
d. Increase in the Assigned Special Tax and the Backup Special Tax
On each July 1, commencing July 1, 2009 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.
2. Undeveloped Property, Taxable Public Property, and Taxable Property Owner
Association Property
a. Maximum Special Tax
The Maximum Special Tax for Undeveloped Property, Taxable Public
Property, and Taxable Property Owner Association Property shall be $36,277
per Acre for Fiscal Year 2008-2009.
b. Increases in the Maximum Special Tax
On each July 1, commencing July 1, 2009, the Maximum Special Tax for
Undeveloped Property, Taxable Public Property, and Taxable Property
Owner Association Property shall be increased by two percent (2%) of the
amount in effect in the previous Fiscal Year.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2008-2009 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 in equal percentages on
each Assessor's Parcel of Taxable Public Property and Taxable Property Owner Association
Property up to the Maximum Special Tax for Taxable Public Property or Taxable Property
Owner Association Property.
DOCSOC/ 1285363v9/022658-0023
E. EXEMPTIONS
No Special Tax shall be levied on up to 5.52 Acres of Property Owner Association Property
and 0.06 Acres of Public Property. Tax-exempt status will be irrevocably assigned by the
CFD Administrator in the chronological order in which property becomes Property Owner
Association Property or Public Property. However, should an Assessor's Parcel no longer be
classified as Public Property or Property Owner Association Property its tax-exempt status
will be revoked.
Property Owner Association Property or Public Property that is not exempt from the Special
Tax under this section shall be subject to the levy of the Special Tax and shall be taxed
Proportionately as part of the fourth 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 landowner or resident may file a written appeal of the Special Tax on his/her property
with the CFD Administrator, provided that the appellant is current in his/her payments of
Special Taxes. During the pendency of an appeal, all Special Taxes previously levied must
be paid on or before the payment date established when the levy was made. The appeal must
specify the reasons why the appellant claims the Special Tax is in error. The CFD
' Administrator shall review the appeal, meet with the appellant if the CFD Administrator
deems necessary, and advise the appellant of its determination. If the CFD Administrator
agrees with the appellant, the CFD Administrator shall eliminate or reduce the Special Tax
on the appellant's property and/or provide a refund to the appellant. If the CFD
Administrator disagrees with the appellant and the appellant is dissatisfied with the
determination, the appellant then has 30 days in which to appeal to the Council by filing a
written notice of appeal with the City 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.
Interpretations may be made by the Council by ordinance or resolution for purposes of
clarifying any vagueness or ambiguity in this Rate and Method of Apportionment.
G. MANNER OF COLLECTION
The Special Tax will be collected in the same manner and at the same time as ordinary ad
valorem property taxes; provided, however, that CFD No. 2008-1 may directly bill the
Special Tax, may collect Special Taxes at a different time or in a different manner if
necessary to meet its financial obligations, and may covenant to foreclose and may actually
foreclose on delinquent Assessor's Parcels as permitted by the Act.
H. PREPAYMENT OF SPECIAL TAX
' The following definition applies to this Section H:
DOCSOC/ 1285363 v9/022658-0023
"CFD Public Facilities" means either $4.03 million in 2008 dollars, which shall increase by
the Construction Inflation Index on July 1, 2009, and on each July 1 thereafter, or such lower
number as (i) shall be determined by the CFD Administrator as sufficient to provide the
public facilities to be provided by CFD No. 2008-1 under the authorized bonding program for
CFD No. 2008-1, or (ii) shall be determined by the Council concurrently with a covenant that
it will not issue any more Bonds to be supported by Special 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 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 Bonds which are deemed to be outstanding under the
Indenture after the first interest and/or principal payment date following the current Fiscal
Year.
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 and Undeveloped Property for
which a building permit has been issued, and only if at the time of prepayment, there
are no delinquent Special Taxes with respect to such Assessor's Parcel and all other
Assessor's Parcels which are under the same ownership and located in CFD No.
2008-1. An owner of an Assessor's Parcel intending to prepay the Special Tax
obligation shall provide the CFD Administrator with written notice of intent to
prepay. Within 30 days of receipt of such written notice, the CFD Administrator shall
notify such owner of the prepayment amount of such Assessor's Parcel. The CFD
Administrator may charge a reasonable fee for providing this service. Prepayment
must be made not less than 45 days prior to the next occurring date that notice of
redemption of Bonds from the proceeds of such prepayment may be given to the
Trustee pursuant to the Indenture.
The Prepayment Amount (defined below) shall be calculated as summarized below
(capitalized terms as defined below):
DOC SOC/ 1285363 v9/022658-0023
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:
Paraeranh No.:
1. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel.
2. For Assessor's Parcels of Developed Property, compute the Assigned Special Tax and
Backup Special Tax applicable for the Assessor's Parcel to be prepaid. For Assessor's
Parcels of Undeveloped Property (for which a building permit has been issued) to be
prepaid, compute the Assigned Special Tax and Backup Special Tax for that Assessor's
Parcel as though it was already designated as Developed Property, based upon the
building permit which has already been issued for that Assessor's Parcel.
' 3. (a) Divide the Assigned Special Tax computed pursuant to paragraph 2 by the total
estimated Assigned Special Taxes for the entire CFD No. 2008-1 based on the
Developed Property Assigned Special Taxes which could be charged in the current
Fiscal Year on all expected development through buildout of CFD No. 2008-1,
excluding any Assessor's Parcels which have been prepaid, and
(b) Divide the Backup Special Tax, computed pursuant to paragraph 2 by the
estimated Maximum Special Taxes from Developed Property at buildout of CFD
No. 2008-1, excluding any Assessor's Parcels which have been prepaid.
4. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the
Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and
prepaid (the "Bond Redemption Amount").
5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the
applicable redemption premium, 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").
DOCSOC(1285363v91022658-0023
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 amount the CFD Administrator reasonably expects to derive from the
reinvestment of the Prepayment Amount less the Future Facilities Amount and the
Administrative Fees and Expenses from the date of prepayment until the
redemption date for the Outstanding Bonds to be redeemed with the prepayment.
11. Add the amounts computed pursuant to paragraphs 8 and 9 and subtract the amount
computed pursuant to paragraph 10 (the "Defeasance Amount").
12. Verify the administrative fees and expenses of CFD No. 2008-1, including the costs
of computation of the prepayment, the costs to invest the prepayment proceeds, the
costs of redeeming Bonds, and the costs of recording any notices to evidence the
prepayment and the redemption (the "Administrative Fees and Expenses").
13. If reserve funds for the Outstanding Bonds, if any, are at or above 100% of the
reserve requirement (as defined in the Indenture) on the prepayment date, a reserve
fund credit shall be calculated as a reduction in the applicable reserve fund for the —
Outstanding Bonds to be redeemed pursuant to the prepayment (the "Reserve Fund
Credit"). No Reserve Fund Credit shall be granted if reserve funds are below 100%
of the reserve requirement.
14. If any capitalized interest for the Outstanding Bonds will not have been expended at
the time of the first interest and/or principal payment following the current Fiscal
Year, a capitalized interest credit shall be calculated by multiplying the larger
quotient computed pursuant to paragraph 3(a) or 3(b) by the expected balance in the
capitalized interest fund after such first interest and/or principal payment (the
"Capitalized Interest Credit").
15. The Special Tax prepayment is equal to the sum of the amounts computed pursuant
to paragraphs 4, 5, 7, 11 and 12, less the amounts computed pursuant to
paragraphs 13 and 14 (the "Prepayment Amount").
16. From the Prepayment Amount, the amounts computed pursuant to paragraphs 4, 5,
11, 13 and 14 shall be deposited into the appropriate fund as established under the
Indenture and be used to retire Outstanding Bonds or make debt service payments.
The amount computed pursuant to paragraph 7 shall be deposited into the
construction fund. The amount computed pursuant to paragraph 12 shall be
retained by CFD No. 2008-1.
The 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.
DOCSOC/ 1285363 v9/022658-0023
' 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 expected Taxable Property at buildout of CFD No. 2008-1 both prior to and after the proposed prepayment is at
least 1.1 times the maximum annual debt service on all Outstanding Bonds.
2. Prepayment in Part
The Special Tax on an Assessor's Parcel of Developed Property or an Assessor's
Parcel of Undeveloped Property for which a building permit has been issued may be
partially prepaid. The amount of the prepayment shall be calculated as in Section
H.1; except that a partial prepayment shall be calculated according to the following
formula:
PP = (PE — A) x F + A.
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.
A = the Administration Fees and Expenses from Section H.1.
The owner of any Assessor's Parcel who desires such prepayment shall notify the CFD
Administrator of such owner's intent to partially prepay the Special Tax and the
percentage by which the Special Tax shall be prepaid. The CFD Administrator shall
provide the owner with a statement of the amount required for the partial prepayment of
the Special Tax for an Assessor's Parcel within thirty (30) days of the request and may
charge a reasonable fee for providing this service. With respect to any Assessor's Parcel
that is partially prepaid, the City shall (i) distribute the funds remitted to it according to
Section H.1, and (ii) indicate in the records of CFD No. 2008-1 that there has been a
partial prepayment of the Special Tax and that a portion of the Special Tax with respect
to such Assessor's Parcel, equal to the outstanding percentage (1.00 - F) of the remaining
Maximum Special Tax, shall continue to be levied on such Assessor's Parcel pursuant to
Section D.
I. TERM OF SPECIAL TAX
The Special Tax shall be levied for a term not to exceed 45 years commencing with Fiscal
Year 2008-2009.
DOCSOC/ 1285363 v9/022658-0023
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF SAN JUAN CAPISTRANO )
I, MARGARET R. MONAHAN, appointed City Clerk of the City of San Juan Capistrano, do hereby
certify that the foregoing Resolution No. 08-08-05-05 was duly adopted by the City Council of the
City of San Juan Capistrano at a Regular meeting thereof, held the 5th day of August 2008, by the
following vote:
AYES: COUNCIL MEMBERS
NOES: COUNCIL MEMBER:
ABSENT: COUNCIL MEMBER:
, City
Allevato, Hribar, Uso and Mayor Soto
Nielsen
None