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