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HomeMy WebLinkAbout96-004 FA Resolution RESOLUTION NO. FA 96-04 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OLD TOWN/WESTSIDE COMMUNITY FACILITIES DISTRICT FINANCING AUTHORITY OF FORMATION OF OLD TOWN/WESTSIDE CO TY FACILITIES DISTRICT FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 1 (OLD TOWN AREA PUBLIC IMPROVEMENTS), AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN THE DISTRICT, PREL ARILY ESTABLISHING AN APPROPRIATIONS LBUT FOR THE DISTRICT AND SUBMITTING LEVY OF THE SPECIAL TAX AND THE ESTABLISHM[ENT OF THE APPROPRIATIONS LLMT TO THE QUALIFIED ELECTORS OF THE DISTRICT WHEREAS, on September 12, 1995, this Board of Directors of the Old Town/Westside Community Facilities District Financing Authority (the 'Authority') adopted a resolution entitled 'A Resolution of the Board of Directors of the Old Town/Westside Community Facilities District Financing Authority of Intention to Establish a Community Facilities District No. 1 and to Authorize the Levy of Special Taxes Pursuant to the Mello- Roos Community Facilities Act of 1982" (the 'Resolution of Intention'), stating its intention to form the Old Town/Westside Community Facilities District Financing Authority Community Facilities District No. 1 (Old Town Area Public Improvements) (the 'District"), pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the 'Act"); and WHEREAS, on October 10, 1995, this Board of Directors adopted a resolution amending the Resolution of Intention to add additional territory to the District, on December 12, 1995 this Board of Directors adopted a resolution making findings as to the complexity of the proposed District and continuing the public hearing called pursuant to the Resolution of Intention with respect to the proposed District, and on February 13, 1996 this Board of Directors adopted a resolution further amending the Resolution of Intention to add additional territory to the proposed District, to authorize the financing of additional improvements by the District, to approve a revised rate and method of apportionment of special taxes for the District and to increase the authorized bonded indebtedness of the District (said resolution, as adopted by this Board of Directors on February 13, 1996, is herein called the 'Amending Resolution'); and WHEREAS, the Resolution of Intention, the resolution adopted on October 10, 1995 described above and the Amending Resolution, incorporating maps of the proposed boundaries of the District and stating the facilities to be financed, the cost of providing such facilities and the rate and method of apportionment of the special tax to be levied within the District to pay the principal and interest on bonds proposed to be issued with respect to District, are on file with the Secretary and the provisions thereof are incorporated herein by this reference as if fully set forth herein; and Resos.FA/96-04 WHEREAS, on March 26, 1996, this Board of Directors held a noticed public hearing as required by the Act, the Resolution of Intention and the Amending Resolution, as applicable, relative to the proposed formation of the District; and WHEREAS, at said hearing all interested persons desiring to be heard on all matters pertaining to the formation of the District, the facilities to be provided therein and the levy said special tax were heard and a full and fair hearing was held; and MMEREAS, at said hearing evidence was presented to this Board of Directors on said matters before it, including a report (the "Report') as to facilities to be provided through the District and the costs thereof, a copy of which is on file with the Secretary, and this Board of Directors at the conclusion of said hearing was fully advised with respect to the premises; and WHEREAS, this Board of Directors desires to delete certain territory from the proposed boundaries of the District, and to approve the revised boundaries of the District as said boundaries are indicated on the third amended map of the boundaries of the District on file with the Secretary and approved as set forth below; and MMEREAS, written protests with respect to the formation of the District, the furnishing of specified types of facilities and the rate and method of apportionment of the special taxes have not been filed with the Secretary by fifty percent (50%) or more of the registered voters residing within the territory of the District or the owners of one-half (1/2) or more of the area of land within the District and not exempt from the special tax; and WI-IEREAS, the special tax proposed to be levied in the District to pay for the proposed facilities to be provided thereby, has been revised following the public hearing to lower the maximum special taxes that may be levied in the District and now is as set forth in Exhibit A hereto, and said special tax has not been eliminated by protest by fifty percent (50%) or more of the registered voters residing within the territory of the District or the owners of one-half (1/2) or more of the area of land within the District and not exempt from the special tax; and MEEREAS, this Board of Directors now desires to form the District and call for an election thereon as provided by the Act. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Old Town/Westside Community Facilities District Financing Authority as follows: 1.The foregoing recitals are true and correct. 2.The proposed special tax to be levied within the District has not been precluded by majority protest pursuant to Section 53324 of the Act. Resoa.FA/96-04 3. All prior proceedings taken by this Board of Directors in connection with the establishment of the District and the levy of the special tax have been duly considered and are hereby found and determined to be valid and in conformity with the Act. On September 12, 1995, this Board of Directors adopted a resolution adopting Local Goals and Policies for Community Facilities Districts of the Authority, and this Board of Directors hereby finds and determines that formation of the District and the authorization to levy special taxes and the proposed rates and method of apportionment of special taxes for the District are in conformity with said goals and policies. The Joint Community Facilities Agreements between the Authority and the City of Temecula, the Riverside County Flood Control and Water Conservation District, the Eastern Municipal Water District and the Rancho California Water District, as authorized by Section 4 of the Resolution of Intention, and heretofore executed by the Executive Director and by the Secretary of the Authority, are hereby ratified and confirmed. The Executive Director is hereby authorized and directed to negotiate (if applicable), with the assistance of Authority Counsel, Bond Counsel and the Director of Public Works of the City of Temecula, and to execute and deliver, all certificates, documents and agreements referenced in or otherwise necessary to carry out the obligations of the Authority under said agreements. 4. The community facilities district designated 'Old Town/Westside Community Facilities District Financing Authority Community Facilities District No. 1 (Old Town Area Public Improvements)' is hereby established pursuant to the Act. 5. The boundaries of the District, as set forth in the third amended map of the District on file with the Secretary, are hereby approved, are incorporated herein by reference and shall be the boundaries of the District. The Secretary is hereby directed to record, or cause to be recorded, said third amended map of the boundaries of the District in the office of the County Recorder of the County of Riverside as soon as practicable, but in any event no more than fifteen days after the adoption of this Resolution. 6. The type of public facilities proposed to be financed by the District and pursuant to the Act shall consist of those items listed as facilities on Exhibit A attached to the Resolution of Intention and those facilities described in Section 3 of the Amending Resolution (collectively, the 'Facilities'), which Exhibit and description are by this reference incorporated herein. 7. Except where funds are otherwise available to the District to pay for the Facilities, the principal and interest as it becomes due on bonds of the District issued to finance the Facilities and/or the costs of the Authority, the District and the City of Temecula to administer the District and such bonds, a special tax sufficient to pay the costs thereof, secured by recordation of a continuing lien against all non-exempt real property and/or interests therein in the District, will be annually levied within the District, and collected in the same manner as ordinary ad valorem property taxes or in such other manner as this Board of Directors may Reson.FA/96-04 3 direct, including direct billing of the affected property owners. The rate and method of apportionment of the special tax among the parcels of real property and the interests therein within the District, in sufficient detail to allow each landowner within the District to estimate the probable maximum amount such owner will have to pay, is set forth in Exhibit A attached hereto and by this reference incorporated herein. As permitted by Section 53340 of the Act, the Board of Directors of the Authority hereby authorizes: (a) the special tax to be collected by direct billing of the property owners when required or otherwise determined by the Treasurer of the Authority as necessary to meet the financial obligations of the District, (b) any property subject to delinquent special taxes to be sold at foreclosure sale at a price determined, consistent with any requirements of the Act, as provided in the fiscal agent agreement providing for the terms of any bonds issued for the District, and (c) a representative of the owners of such bonds to bid at any such foreclosure sale in the amount of the delinquent special taxes plus any penalties, interest and applicable foreclosure costs; and to take title to the delinquent property if the highest bidder, without any requirement for the payment of monies by such representative or the Bondowners; all as further provided and directed in the fiscal agent agreement providing for the terms of any bonds issued for the District the payment of which is to be made from the proceeds of such special taxes. 8. It is hereby found and determined that the Facilities are necessary to meet increased demands placed upon local agencies as the result of development or rehabilitation occurring in the District. 9. The Treasurer of the Old Town/Westside Community Facilities District Financing Authority, 43174 Business Park Drive, Temecula, California 92590, telephone number (909) 694-6444, is the officer of the Authority which will be responsible for preparing annually a current roll of special tax levy obligations by assessor's parcel number and which will be responsible for estimating future special tax levies pursuant to Section 53340.2 of the Act. 10. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property in the District and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the tax by the Board of Directors of the Authority ceases. 1 1. In accordance with Section 53325.7 of the Act, the annual appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, of the District is hereby preliminarily established at $27,500,000 and said appropriations limit shall be submitted to the voters of the District as hereafter provided. The proposition establishing said annual appropriations limit shall become effective if approved by the qualified electors voting thereon and shall be adjusted annually in accordance with the applicable provisions of Resos.FA/96-04 4 Section 53325.7 of the Act. 12. Pursuant to the provisions of the Act, the proposition of the levy of the special tax and the proposition of the establishment of the appropriations limit specified above shall be submitted to the qualified electors of the District at an election, the time, place and conditions of which shall be as specified by a separate resolution of the Board of Directors. PASSED, APPROVED AND ADOPTED, by the Board of Directors of the Old Town/Westside Community Facilities District Financing Authority at a regular meeting held on the 23rd day of April, 1996. Patricia H. Birdsall, Chairperson ATTEST: Jun@. reek, CMC Authority Secretary/City Clerk Resos.FA/96-04 5 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ss CITY OF TEMECULA I, June S. Greek, City Clerk of the City of Temecula, HEREBY DO CERTIFY that the foregoing Resolution No. FA 96-04 was duly adopted at a regular meeting of the Board of Directors of the Old Town/Westside Community Facilities District Financing Authority on the 23rd day of April, 1996, by the following roll call vote: AYES: 4 BOARD MEMBERS: Birdsall, Ford, Roberts, Lindemans NOES: 0 BOARD MEMBERS: None ABSENT: 0 BOARD MEMBERS: None ABSTAINED: 1 BOARD MEMBERS: Stone Z-4 June S. Greek,CMC Authority Secretary/City Clerk Resoo.FA/96-04 6 EXHIBIT A RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES OLD TOWN/WESTSIDE CO TY FACILITIES DISTRICT FINANCING AUTHORITY Community Facilities District No. 1 (Old Town Area Public Improvements) A special tax shall be levied on each Parcel of land within the Old Town/Westside Community Facilities District Financing Authority Community Facilities District No. 1 (Old Town Area Public Improvements) (the 'District"), and collected according to the Special Tax Liability determined by the Responsible Party of the Old Town/Westside Community Facilities District Financing Authority (the 'Authority') through the application of the following procedures. All of the property within the District, unless otherwise exempted by law or the express provisions of the rate and method of apportionment expressed below, shall be taxed to the extent and in the manner provided below. It is intended that all special taxes applicable to Parcels be collected in the same manner and at the same time as ordinary ad valorem property taxes, and that special taxes so levied will be subject to the same penalties and procedures, sale and lien priority in case of delinquency as is provided for ad valorem taxes, subject to any covenant for judicial foreclosure with respect thereto in any Fiscal Agent Agreement for any Bonds of the Authority for the District. Notwithstanding the foregoing, the Authority may collect the special taxes at such other times or in such other manner as necessary or convenient to satisfy the obligations of the District. MAX SPECIAL TAX ZONIE A The maximum special tax that may be levied in the Fiscal Year ending June 30, 1996 on any Parcel, designated as Zone A on the map shown herein as Exhibit 1, shall not exceed the sum of- (i)The maximum building special tax rate of $17.00 per building square foot, multiplied times the sum of the Building Floor Area for all buildings on the Parcel; plus (ii)The maximum land special tax rate of $15.00 per land square foot, multiplied times the Land Area of the Parcel. Resos.FA/96-04 7 ZONE B The maximum special tax that may be levied in the Fiscal Year ending June 30, 1996 on any Parcel, designated as Zone B on the map shown herein as Exhibit 1, shall not exceed the sum of- (i)The maximum building special tax rate of $17.00 per building square foot, multiplied times the sum of the Building Floor Area for all buildings on the Parcel; plus (ii)The maximum land special tax rate of $15.00 per land square foot, multiplied times the Land Area of the Parcel. The special tax for Zone A and Zone B shall be levied annually. The maximum building special tax and the maximum land special tax for Zone A and Zone B shall increase each Fiscal Year from the maximum special tax for the Fiscal Year ending June 30, 1996 by 2 %, compounded annually. A Parcel shall be subject to the maximum special tax for not more than 40 years. In no event shall the maximum special tax on any Parcel used for private residential purposes exceed any limitation imposed under Section 53321 of the California Government Code. ASSIGNMENT TO CATEGORIES; LEVY ANNUAL TAX CATEGORIES On or about July I of each year, but in any event in sufficient time to include the levy of the special taxes on the County's secured tax roll, the Responsible Party shall determine for each Parcel within the District, whether or not such parcel is Taxable Property, and whether such Parcel is designated as Zone A or Zone B. Parcels subject to levy shall be determined based upon the records of the County Assessor as of the January 1 preceding such July 1. LEVY The Responsible Party shall then determine the estimated aggregate Special Tax Liability for the FiscalYear commending such July 1, and levy on each Parcel which is Taxable Property, as follows: Step 1:Determine the Building Floor Area for each respective Parcel which is Taxable Property, and the total Building Floor Area for all Parcels which are then Taxable Property in the District. Step 2:Calculate the annual building tax rate by dividing an amount equal to 85 % of Resoa.FA/96-04 8 the Special Tax Liability, by the total Building Floor Area for all Parcels which are then Taxable Property. Step 3:Multiply the total Building Floor Area for each respective Parcel which is Taxable Property by the lesser of-. (i) the annual building tax rate; or (ii)the maximum building special tax rate for Zone A and Zone B, rest)ectfullv. for the Fiscal Year commencing such July 1. Step 4:Determine the Land Area for each Parcel of Taxable Property in the District and the total Land Area for all Parcels which are then Taxable Property in the District. Step 5:Calculate the annual land tax rate as the lessor of: (i)(the sum of the Special Tax Liability less the total of the funds generated for all Parcels which are then Taxable Property under Step 3 above), divided by the total Land Area (by square footage) for all Parcels which are then Taxable Property; or (ii)the maximum land special tax for Zone A and Zone B, respectfully, for the Fiscal Year commencing such July 1. Step 6:Multiply the Land Area for each Parcel which is Taxable Property by the annual land tax rate determined under Step 5. Step 7:Calculate the sum of the building tax (from Step 3) and the land tax (from Step 6)for each parcel which is Taxable Property. PREPAYMENTS Special tax prepayments may be made for property subject to the levy of the special taxes. A particular Parcel may prepay the special tax, provided that all authorized Bonds that are to be issued, have been issued. Any property owner in the District that desires to prepay the annual special taxes on a particular Parcel shall notify the Responsible Party in writing of such intention not less than 90 days prior to an interest payment date for the Bonds and the prepayment must be made not less than 45 days prior to such interest payment. The following must be applied for a prepayment of a particular Parcel: A.The prepayment amount for a particular Parcel shall be calculated by the Responsible Party, as follows: Resos.FA/96-04 9 1.Compute the special tax for such Parcel by the total special tax for the then current Fiscal Year. 2.The prepayment amount is computed by dividing the special tax for the Parcel by the total special tax for all properties for the then current Fiscal year within the District, and multiplying the results by the principal amount of any outstanding Bonds. The result shall be rounded up to the nearest five thousand dollars ($5,000); provided however, that if the Authority is provided with prepayments of special tax for more than one Parcel at the same time, then the total prepayments shall be aggregated and the aggregated prepayment amount shall be rounded up to the nearest five thousand dollars ($5,000). 3.The prepayment amount calculated in (2) above for a particular Parcel will be (a) increased in the amount of. (i) applicable redemption premium, if any, on the Bonds; (ii) an amount determined by the Responsible Party to offset any difference between the amount needed to pay debt service on the Bonds and the amount derived from the reinvestment of the prepaid special tax pending the redemption of such bonds; and (iii) amount determined by the Responsible Party to pay for the applicable Administrative Expenses to provide such prepayment; and (b) decreased for any reduction in Bond reserves due to the prepayment. 4.Determination of the total amount needed by the Responsible Party shall be conclusive, absent manifest error. B.The Parcel with respect to which prepayment is made must not be delinquent in any payment of special taxes previously levied within the District. Prepayment shall not relieve any property owner from paying those special taxes which have already become due and payable, and a Notice of Cessation of Special Tax Lien shall not be recorded against any Parcel pursuant to California Government Code Section 53344, until special taxes with respect to that Parcel have been paid. DEFMTIONS Administrative Expenses means any or all of the following: the fees and expenses of the Fiscal Agent (including any fees or expenses of its counsel), the expenses of the Authority and the City in carrying out their respective duties with respect to the District (including, but not limited to, the levy and collection of the special taxes) including the fees and expenses of their respective counsel, any fees of the County related to the District or the collection of special taxes, an allocable share of the s@es of the Authority and the City staff directly related thereto and a proportionate amount of Authority and the City general administrative overhead related thereto, any amounts paid by the Authority or the City, respectively, from its own funds with respect to the District or the Bonds, and all other costs and expenses of the Resos.FA/96-04 10 Authority, the City or the Fiscal Agent incurred in connection with the discharge of their respective duties under the Fiscal Agent Agreement and, in the case of the authority and the City, in any way related to administration of the District. Authority means the Old Town/Westside Community Facilities District Financing Authority. Bonds means any bonds of the Authority issued for the District under Mello-Roos Community Facilities Act of 1982, as amended, authorized to be issued under the Resolution of Issuance. Building Floor Area means the area included within the surrounding exterior walls of a building, including each floor of multiple story buildings, exclusive of vent shafts and courts (defined here as open and unobstructed to the sky). The Building Floor Area will be determined by the Responsible Party by reference to City or County approved building plans or other such documentation as the Responsible Party shall determine. City means the City of Temecula. County means the County of Riverside. Debt Service, for each Fiscal Year, is the total annual principal and interest payable on the Bonds during the calendar year which commences in such Fiscal Year, less any capitalized interest and any other amounts remaining in the bond fund held under the Fiscal Agent Agreement as of the end of the previous Fiscal Year available to make such payments. District means the Old Town/Westside Community Facilities District Financing Authority Community Facilities District No. 1 (Old Town Area Public Improvements). Fiscal Agent means the Fiscal Agent designated under the Fiscal Agent Agreement. Fiscal Agent Agreement means the agreement by that name approved by the Resolution of Issuance, and as it may be amended and/or supplemented from time to time. Fiscal Year means the period starting on July 1 and ending on the following June 30. Land Area means the measure of land area of a Parcel, in square feet of land, rounded up to the nearest whole integer. Parcel means any County Assessor's parcel or portion thereof that is within the boundaries of the District based on the equalized tax rolls of the County. Resolution of @uance is any Resolution adopted by the Authority authorizing the issuance of Bonds. Resos.FA/96-04 11 Responsible Party is any person or persons who the Authority may appoint from time to time to compute the levy of the special taxes within the District. Special Tax Liability for any Fiscal Year is an amount sufficient to pay Debt Service for such Fiscal Year, Administrative Expenses for such Fiscal Year, an amount necessary, as determined by the Responsible party, to offset projected tax delinquencies that may occur in such Fiscal Year based on prior Fiscal Year delinquencies that may occur in such Fiscal Year and to otherwise replenish any reserve fund established for the Bonds, and all payments required to be made in the applicable Fiscal Year under the Fiscal Agent Agreement for the Bonds and any supplements thereto. Taxable Property shall mean all real property within the boundaries of the District that is owned in fee by T.Z.B.G., Inc. or BFD/OTEP, a California corporation, at any time between the adoption of the resolution of formation for the District and the date that is one year after the adoption of the resolution of formation, provided however, that the following property shall be exempt from the special tax (i) any real property that is exempt from taxation by law, (ii) any acres of land owned, conveyed or irrevocably offered for dedication to and accepted by a public agency, including but not limited to, the federal government, the State of California and any local governmental agency, and (iii) land which is a public right-of-way or which is an unmanned utility easement making impractical its utilization for other than the purpose set forth in the easement. Zone A is designated as those Parcels within the boundaries of the District that are not in Zone B, as shown on the map designated Exhibit 1 herein. Zone B is designated as those Parcels within the boundaries of the District, as shown on the map designated Exhibit 1 herein. Resos.FA/96-04 12