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
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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.
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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
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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
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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
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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.
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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
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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:
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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
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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.
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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.
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