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HomeMy WebLinkAboutAGENDA REPORT 2004 0915 CC REG ITEM 09BTO: FROM: DATE: MOORPARK CITY COUNCIL AGENDA REPORT Honorable City Council Hugh R. Riley, Assistant City September 7, 2004 (City Council ITEM 9 -15- CITY OF MOORPARK, CALIFORNIA City Council Meeting or ACTION: I% . ODD/- 19 � i f- Manager Meeting of Sept 15, 2004) SUBJECT: Proceedings to Initiate the Formation of the City of Moorpark Community Facilities District No. 2004 -1 (Moorpark Highlands) and Moorpark Community Facilities District No. 2004 -2 (Moorpark Vista) BACKGROUND: The City Council will consider documents prepared by City staff and consultants that the Council may adopt to initiate the formation of two, separate Community Facilities Districts (CFDs) (commonly called "Mello -Roos Districts "). The specific documents that staff and consultants will present to the City Council are listed and discussed in the "Analysis" section below and are incorporated into the following resolutions: 1. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK DECLARING ITS INTENTION TO ESTABLISH THE CITY OF MOORPARK COMMUNITY FACILITIES DISTRICT NO. 2004 -1 ( MOORPARK HIGHLANDS) AND TO LEVY A SPECIAL TAX THEREIN TO FINANCE THE ACQUISITION AND CONSTRUCTION OF CERTAIN PUBLIC FACILITIES AND THE PAYMENT OF CERTAIN FEES IN AND FOR SUCH COMMUNITY FACILITIES DISTRICT NO. 2004 -1. This Resolution includes a list of improvements, a special tax report and a District Boundary Map (Exhibits A, B and C). 2. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK DECLARING ITS INTENTION TO INCUR A BONDED INDEBTEDNESS TO FINANCE THE ACQUISITION AND CONSTRUCTION OF CERTAIN PUBLIC FACILITIES AND THE PAYMENT OF CERTAIN FEES IN AND FOR THE CITY OF MOORPARK COMMUNITY FACILITIES DISTRICT NO. 2004 -1. 000077 Honorable City Council September 7, 2004 Page 2 3. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK DECLARING ITS INTENTION TO ESTABLISH THE CITY OF MOORPARK COMMUNITY FACILITIES DISTRICT NO. 2004 -2 ( MOORPARK VISTA) AND TO LEVY A SPECIAL TAX THEREIN TO FINANCE THE ACQUISITION AND CONSTRUCTION OF CERTAIN PUBLIC FACILITIES AND THE PAYMENT OF CERTAIN FEES IN AND FOR SUCH COMMUNITY FACILITIES DISTRICT. This Resolution includes a list of improvements, a special tax report, and a District Boundary Map (Exhibits A, B and C). 4. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK DECLARING ITS INTENTION TO INCUR A BONDED INDEBTEDNESS TO FINANCE THE ACQUISITION AND CONSTRUCTION OF CERTAIN PUBLIC FACILITIES AND THE PAYMENT OF CERTAIN FEES IN AND FOR THE CITY OF MOORPARK COMMUNITY FACILITIES DISTRICT NO. 2004 -2. DISCUSSION: The property owners, Morrison /Pardee Homes and Suncal Homes, have submitted petitions to the City in accordance with Section 53311 and other relevant Sections of the California Government Code requesting the City to form a Community Facilities District for the Moorpark Highlands Development Project (Pardee) and a Community Facilities District for the Moorpark Vista Development Project ( Suncal) ( "the CFDs ") . Two separate CFDs are planned since the projects may proceed and require funding on different schedules. Each Petition includes a deposit of $100,000 to be used by the City to pay the costs for creating the districts. These funds are not from bond proceeds and are separate and distinct from other administrative fees to be paid to the City as a part of the Community Facilities District financing. The above referenced petitions stipulate that if the Districts are not ultimately formed and there is no financing, all City staff costs including costs for the City Attorney to review all pertinent documents and costs incurred by the Special Tax Consultant and the Appraiser would be paid by the developers from the initial deposit. The other consultants could be reimbursed for documented expenses from the remainder of the deposits. The petitions also provide that, should such preliminary expense exceed the amount of the deposits, the petitioning property owners will pay the additional costs. The petitions are on file with the City Clerk. The proposed CFDs encompass approximately 670 planned residential units. The 000078 Honorable City Council September 7, 2004 Page 3 planning for these subdivisions has been under discussion with the City for several years and pre- formation planning for the CFDs has been undertaken by the City during the last few months. The purpose of the CFDs is to fund the acquisition of a public school site, the construction of certain major on and off site street projects and the payment of certain fees associated with the development projects. These facilities will serve the entire 445 acres included in Specific Plan No. 2 including 460 single family dwelling units, 100 multiple family dwelling units that are being developed by Pardee Homes, a public school site and designated open space. The nearby property containing 72 acres owned by SunCal is also the subject of a separate CFD to provide infrastructure for 110 single family dwellings to be developed in that area. The total cost of the estimated infrastructure that will be acquired by the CFDs is approximately $ 47 million. The infrastructure is to be constructed by the private developer and to be acquired by the City following completion, as per the terms and conditions of an acquisition agreement that will be adopted by the City Council at a future date. The construction process is expected to take approximately 5 years. The acquisition of an approximately 22 -acre public school site in the Moorpark Highlands project has been included in the financing plan at the request of the Moorpark Unified School District. Approximately a year ago, the City Council Ad Hoc Committee (Mayor Hunter and Councilmember Harper) and staff met with representatives of the Moorpark Unified School District and Pardee to discuss the School District's desire to receive school impact fees as well as the reserved school site in Specific Plan No. 2. The School District and Pardee could not reach agreement on this proposal. Pardee was willing to negotiate on the price of the land and grading improvements but insisted on the use of a Community Facilities District (CFD) to finance the acquisition of the site for the District if it was to also pay the full amount of legally required school fees. The School District did not want to sponsor the CFD. The MUSD /City Ad Hoc Committee (Mayor Hunter and Councilmember Harper) concurred to recommend that the City Council sponsor the proposed CFDs. A Joint Community Facilities Agreement will be prepared to address future issues regarding the disposition and development of the 22 acre school site. 0()001__t,9 Honorable City Council September 7, 2004 Page 4 The Districts include a special tax to be levied on the property to pay debt service for bond financing for the facilities described above. If the bonds are sold during the first part of 2005 and assessments are placed on the tax rolls in August 2005, revenues from the special tax for bond financed facilities would be available in December 2005. The Districts also include a police services tax component at a rate of $350 per home per year to help offset the costs for additional law enforcement services created by the projects. Revenue from this special tax will be available to the City in fiscal year following the issuance of building permits for the projects. The Police Services portion of the Special Tax will escalate annually at the greater of 20 or a CPI factor. This tax can not be prepaid partially or in full, and will run until no longer needed as directed by the City Council. The City will also have the ability to access the surplus debt services coverage from the bond issue if additional City Police Services funds are required The CFDs will be similar to other CFD programs in the Southern California Region in both structure and cost to homeowners and represents what is typical in areas of significant new residential development. The property owners have requested that the CFDs be formed and have successfully used this financing tool in the development and marketing of their homes elsewhere. In addition, the City will receive an up -front fee of $50,000 from bond proceeds per issue which is separate from the petition deposits, to off -set the cost of setting up the administrative structure to administer the District. The City will also collect a $50,000 annual administrative fee per district, from which it will appropriate $10,000 for the administration of the special tax assessment roll. AMAT.VgTC The developers, Pardee and Suncal, have petitioned the City to form separate community facilities districts (CFDs) under the Mello -Roos law. The CFD is a financing tool for a portion of the public infrastructure needed for development of homes. This type of district is commonly used by home developers throughout California to finance infrastructure in new developments. The City financing team of Urban Futures (financial advisor), Piper'Jaffray & Co., (bond underwriters), General Government Management Services, Inc. 01000�d® Honorable City Council September 7, 2004 Page 5 (Special Tax Consultant) and Jones Hall, LPC, (bond and disclosure counsel), in coordination with City staff, have reviewed the documentation prepared to date and provided suggestions and changes that are intended to make the program more straightforward, fair and efficient to administer. The CFDs are proposed to have a special tax that will be in place for a period of approximately 30 years. The Special Tax levels will range from $2,120 per home to over $$7,094 per home depending upon the CFD in which the home is located and, in the case of the Moorpark Highlands District, the Zone where the home is located. The Moorpark Highlands District is divided into four, Special Tax Zones and homes in these zones vary in square footage. Home size and tax rates are described in Tables 1 through 4 of Exhibit B to Attachment 1. The amount of special tax paid by the ultimate homeowner will be determined by the size of the home purchased. Each prospective homeowner prior to the close of escrow will be informed as to the maximum special tax that could be paid and will be requested to sign a full disclosure agreement, a copy of which will be kept with the CFD administrators. Homebuyers will be given the option of paying the full amount of the special tax levy on each house at the time of purchase (The Special Tax formula will not permit a pre - payment of the public safety services portion of the levy) . In addition, there will be provisions to pay off the levy at anytime the homeowner elects to do so. The special tax is scheduled to increase at a rate of 2% percent per year for the program life. The home developer has requested this tax level and determined it is appropriate for the planned homes. The Special Tax rates within the Moorpark Highlands CFD (Pardee) are expected to fund approximately $35 million of infrastructure necessary for development. The Special Tax Rate for the Moorpark Vista CFD (SunCal) will fund approximately $12 million of infrastructure for that development. The funding mechanism will be the issuance of one or more bond sales, with the first expected to occur in late 2004 or early 2005. The law firm of Jones Hall was selected to prepare all the necessary documentation for the bond sales and the firm of Piper Jaffray & Co. was selected to underwrite (sell) the bonds. The CFDs proposed are to be called Community Facilities District No. 2004 -1 (Moorpark Highlands) and Community Facilities District No. 2004 -2 (Moorpark Vista). These and subsequent CFD's are proposed to be numbered sequentially by year. ` GOOS . Honorable City Council September 7, 2004 Page 6 The City Council has four resolutions for consideration. These resolutions are required by the Mello -Roos law and are the first steps in forming a CFD and issuing bonds. Additional resolutions and other actions will be required at subsequent meetings before the process is complete. The resolutions incorporate preliminary approval of the following: 1. The List of Improvements Authorized to be financed and acquired 2. The Special Tax Formula 3. Maximum amount of bonds to be issued 4. District Boundary Map The Resolutions of Intention, Attachments 1 and 3, declare the intention of the City to establish the CFDs, designate the names of the districts, identify the facilities to be acquired and financed for each district, and state the City's intention to levy a special tax to pay for the acquisition, construction, and associated costs of the public facilities. Exhibit B to these two formation resolutions contain the Special Tax Formulas for the Districts and are the most important documents for the City Council to review and consider in this regard. They are the roadmap as to the amount of taxes to be levied against each property in the CFDs. The taxes are the security for the bonds of the Districts; the bonds are not an obligation of the City and are payable only from the collected special taxes. Since the special tax is payable by the owners of the properties in the CFDs in the same manner general taxes are payable, as the property develops, the special tax shifts from the developer to the homeowner upon sale of the home. Homeowners will be provided with information about early Pay -off of the assessment. The Listing of Authorized Facilities, Exhibits A to each of the formation resolutions, are also important for the City Council to review because they provide the detail of the facilities that are permitted to be financed by the CFDs. The District Boundary Maps are included as Exhibit C to the formation resolutions. At the City Council Meeting, the developers will be available to explain the major improvements and their location. The listing is the "menu" of items that can be financed, but the amount available from the bonds may not necessarily be enough to cover all the items. The Resolutions set October 20, 2004, as the date for the required hearing on the matters set forth therein. At the public hearing, the City Council will hear a presentation on the proposed CFDs to 0()00 &2 Honorable City Council September 7, 2004 Page 7 fund the major infrastructure requirements and associated planning and design costs for the projects. At the same time, the election of the property owners (The developers requesting the CFDs) is expected to be completed. The election results will unanimously favor the CFD formation, as only property owners in favor of the District are within the District boundaries and will be voting. The property owners will waive a number of notice and election procedures that make it possible for the District to proceed at this pace. At the public hearing on the CFDs, protests against the establishment of the Districts, the extent of the districts, or the furnishing of specified types of public facilities or services within the Districts and the issuance of bonds may be made orally or in writing by any interested persons or taxpayers. Any protests pertaining to the regularity or sufficiency of the proceedings shall be made in writing and shall clearly set forth the irregularities and defects to which objection is made. All written protests shall be filed with the City Clerk on or before the time fixed for the hearing. The City Council may waive any irregularities in the form or content of any written protest and at the hearing may correct minor defects in the proceedings. Written protests may be withdrawn in writing at any time before the conclusion of the hearing. Objections of the non -owner public will be heard but are not determinative to the formation process. If the City Council determines at the conclusion of the hearings on October 20, 2004, to proceed with the establishment of the CFDs, the voting results are reported and the process is concluded by adoption of additional resolutions and an ordinance. Notice of the Public Hearings will be published in a newspaper of general circulation at least seven days prior to the hearing date. The City may also elect to mail a notice of the hearings to each property owner. The Resolutions of Intention to Incur Bonded Indebtedness, Attachments 2 and 4, declare the intention of the City to provide for the issuance of bonds to finance the authorized improvements of the CFDs. The bonds are expected to be tax - exempt since they finance public improvements which will be acquired by the City or another public entity. 000083 Honorable City Council September 7, 2004 Page 8 STAFF RECOMMENDATION: Adopt Resolution Nos. 2004- Attachments: 2004- , 2004- , and 2004- 1. Resolution 2004- , Intent to Form CFD 2004 -1 Exhibit A - Listing of Authorized Facilities Exhibit B - Special Tax Report Exhibit C - District Boundary Map 2. Resolution 2004- Intent to Finance CFD 2004 -1 3. Resolution 2004- Intent to Form CFD 2004 -2 Exhibit A - Listing of Authorized Facilities Exhibit B - Special Tax Report Exhibit C - District Boundary Map 4. Resolution 2004- , Intent to Finance CFD 2004 -2 1'00084 ATTACHMENT RESOLUTION NO. 2004- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, DECLARING ITS INTENTION TO ESTABLISH THE CITY OF MOORPARK COMMUNITY FACILITIES DISTRICT NO. 2004 -1 ( MOORPARK HIGHLANDS) AND TO LEVY A SPECIAL TAX THEREIN TO FINANCE THE ACQUISITION AND CONSTRUCTION OF CERTAIN PUBLIC FACILITIES AND THE PAYMENT OF CERTAIN FEES AND THE PROVISION OF POLICE PROTECTION SERVICES IN AND FOR SUCH COMMUNITY FACILITIES DISTRICT WHEREAS, Under the Mello -Roos Community Facilities Act of 1982, as amended (the "Act ") , Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing at Section 53311, of the California Government Code, this Council is authorized to establish a community facilities district and to act as the legislative body for such community facilities district; and WHEREAS, This Council, having received indications of interest on behalf of the owners of the areas of land proposed to be included in a proposed community facilities district, desires to proceed with the establishment of a community facilities district in order to finance costs of public infrastructure necessary or incidental to development in the City, which may include the payment of fees related thereto, and for the provision of police protection services related to new development; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Authority. This Council proposes to conduct proceedings to establish a community facilities district pursuant to the Act. SECTION 2. Name of CFD. The name proposed for the community facilities district is the City of Moorpark Community Facilities District No. 2004 -1 (Moorpark Highlands) (the "CFD "). 0 000" 5 Resolution No. 2004 - Page 2 SECTION 3. Boundaries Described. The proposed boundaries of the CFD are as shown on the Proposed Boundary Map attached as Exhibit C, which boundaries are hereby preliminarily approved and to which map reference is hereby made for further particulars. The City Clerk is hereby directed to record, or cause to be recorded, said map of the boundaries of the CFD in the office of the County Recorder within fifteen days of the date of adoption of this Resolution, but in any event at least fifteen days prior to the public hearing specified in paragraph 10 below. SECTION 4. Facilities and Services. The type of public facilities and services proposed to be financed by the CFD and pursuant to the Act shall consist of those items listed as Facilities (the "Facilities ") and services (the "Services ") on Exhibit A hereto and hereby incorporated herein. The Council hereby finds and determines that the public interest will not be served by allowing the property owners in the CFD to enter into a contract in accordance with Section 53329.5(a) of the Act. Notwithstanding the foregoing, the Council, on behalf of the CFD, may enter into one or more contracts directly with any of the property owners with respect to the construction and /or acquisition of any portion of the Facilities. Certain of the public facilities proposed to be provided within the CFD may include facilities to be owned by other public entities and as to each entity, the City proposes to enter into a separate Joint Community Facilities Agreement pursuant to Section 53316.2 of the Act, whereby, if such applicable facilities are constructed in accordance with required specifications and standards, each entity will accept such facilities for operation and maintenance and the City will pay for such acquisition costs under appropriate conditions and subject to an acquisition agreement between the City and certain owners of property in the District. The City Council hereby finds that such joint facilities agreements would be beneficial to the residents of the City. The City Council hereby authorizes the Assistant City Manager or such other person or persons as he may designate to execute such joint facilities agreements, for and in the name and on behalf of the City and the CFD, in such forms, together with any additions thereto or changes therein deemed necessary or advisable by such officer executing such document upon consultation with bond counsel to the City. 0Go:fit;G DOCSSF1:676658.1 Resolution No. 2004 - Page 3 SECTION 5. Special Tax. Except to the extent that funds are otherwise available to the CFD to pay for the Facilities and Services, and /or the principal and interest as it becomes due on bonds issued by the City for the CFD to construct and /or acquire the Facilities, a special tax (the "Special Tax ") sufficient to pay the costs thereof, secured by recordation of a continuing lien against all non - exempt real property in the CFD, will be levied annually within the CFD, and collected in the same manner as ordinary ad valorem property taxes, or in such other manner as this Council or its designee shall determine, including direct billing of the affected property owners. The proposed rate and method of apportionment of the Special Tax among the parcels of real property within the CFD in sufficient detail to allow each landowner within the proposed CFD to estimate the maximum amount such owner will have to pay, are described in Exhibit B attached hereto and hereby incorporated herein. This Council hereby finds that the provisions of Section 53313.6, 53313.7 and 53313.9 of the Act (relating to adjustments to ad valorem property taxes and schools financed by a community facilities district) are inapplicable to the proposed CFD. SECTION 6. Exempt Property. Except as may otherwise be provided by law or by the rate and method of apportionment of the Special Tax for the CFD, all lands owned by any public entity, including the United States, the State of California and the City, or any departments or political subdivisions thereof, shall be omitted from the levy of the Special Tax. In the event that a portion of the property within the CFD shall become for any reason exempt, wholly or in part, from the levy of the Special Tax, this Council will, on behalf of the CFD, increase the levy to the extent necessary upon the remaining property within the CFD which is not exempt in order to yield the required debt service payments and other annual expenses of the CFD, if any, subject to the provisions of the rate and method of apportionment of the Special Tax. SECTION be subject t at a special by mailed or proposed CFD, DOCSSF1:676658.1 7. Election. The levy of the Special Tax shall o the approval of the qualified electors of the CFD election. The proposed voting procedure shall be hand - delivered ballot among the landowners in the with each owner having one vote for each acre or Resolution No. 2004 - Page 4 portion of an acre such owner owns in the CFD. The Council hereby determines that the Facilities and Services are necessary to meet increased demands placed upon local agencies as the result of development occurring within the CFD. SECTION 8. Special Tax Bonds. It is the intention of this Council, acting as the legislative body for the CFD, to cause bonds of the City to be issued for the CFD pursuant to the Act to finance in whole or in part the construction and /or acquisition of the Facilities. The bonds shall be in an aggregate principal amount not to exceed $43,750,000, shall be issued in such series and bear interest payable semi - annually or in such other manner as this Council shall determine, at a rate not to exceed the maximum rate of interest as may be authorized by applicable law at the time of sale of such bonds, and shall mature not to exceed 35 years from the date of the issuance thereof. SECTION 9. CFD Report. The City Manager, as the officer having charge and control of the Facilities in and for the CFD, or the designee of such official, is hereby directed to study said proposed Facilities and to make, or cause to be made, and file with the City Clerk a report in writing, (the "CFD Report ") presenting the following: (a) A description of the Facilities and Services by type which will be required to adequately meet the needs of the CFD. (b) An estimate of the fair and reasonable cost of the Facilities and Services including the cost of acquisition of lands, rights -of -way and easements, any physical facilities required in conjunction therewith and incidental expenses in connection therewith, including the costs of the proposed bond financing and all other related costs as provided in Section 53345.3 of the Act. The CFD Report shall be made a part of the record of the public hearing specified below. SECTION 10. Public Hearing. October 20, 2004, at 7:00 p.m. or as soon as possible thereafter, in the City Council Chambers, Moorpark Community Center, 799 Moorpark Avenue, G00368 nnC", Q P I-(.'7 AA 1; R 1 Resolution No. 2004 - Page 5 Moorpark, California 93021, be, and the same are hereby appointed and fixed as the time and place when and where this Council, as legislative body for the CFD, will conduct a public hearing on the establishment of the CFD and consider and finally determine whether the public interest, convenience and necessity require the formation of the CFD and the levy of the Special Tax. SECTION 11. Notice of Hearing. The City Clerk is hereby directed to cause notice of the public hearing to be given by publication one time in a newspaper published in the area of the CFD. The publication shall be completed at least seven days before the date of the public hearing referenced in Section 10. The notice shall be substantially in the form specified in Section 53322 of the Act, with the form summarizing the provisions hereof hereby specifically approved. SECTION 12. Certification. The City Clerk shall certify to the adoption of this resolution and cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 15th day of September, 2004. Patrick Hunter, Mayor ATTEST: Deborah S. Traffenstedt, City Clerk Attachments: Exhibit A Listing of Authorized Facilities Exhibit B Special Tax Report Exhibit C District Boundary Map 'fir 0 189 DOCSSF1:676658.1 Exhibit A Facilities and Services List City of Moorpark Community Facilities District No. 2004 -1 (Moorpark Highlands) Facilities The Facilities which are proposed to be financed with the proceeds of the sale of bonds of the proposed community facilities district, or the payment of the fees to the appropriate jurisdiction with respect to such facilities proposed to be financed with the proceeds of the sale of bonds of the proposed community facilities district, generally described as follows: • City of Moorpark Infrastructure, including Development Impact Fees (i.e. Police Facilities, Fire Facilities /Equipment, Streets /Minor Bridges /Culverts, Traffic Signals /Controllers, Storm Drainage and Retention Facilities, General Facilities /Vehicles /Equipment, Open Space Acquisition, Park Land /Facilities, Community Center, Library Facilities /Collection and Major Bridge.) • Street Improvements for Spring Road, "A" Street, and "C" Street (including, but not limited to, the associated sidewalks, traffic controls, street lighting, curb and gutter, pedestrian access ramps, grading, design) • Wall Improvements (Los Angeles Avenue to Charles Street) • Calleguas Water District Capital Fee • School Fees • Ventura County Watershed Protection District Fees • County Water /Sewer Improvements and Fees • Public Park, Recreation or Open Space Facilities • Landscaping of Public Streets, Right -Of -Ways, Storm Drain Facilities, Slopes, Mitigation Monitoring and Appurtenant Facilities The foregoing description of the types of Facilities eligible to be financed is general in nature and includes any appurtenant work and incidental expenses relating to the Facilities. The final nature and location of the facilities will be determined upon the preparation of final plans and specifications for such facilities. Exhibit A CFD 2004 -1 City of Moorpark Page A -1 August 11, 2004 000090 Services Service for the district include funding for Police services within or in the vicinity of the District, in addition to those services provided in the territory of the District and do not supplant services already available within that territory, to the extent authorized by the Mello -Roos Community Facilities Act of 1982, as amended. Other The bond related expenses authorized include the City, underwriters discount, financial advisor, appraisals, reserve fund deposit, capitalized interest, bond counsel, disclosure counsel, special tax consultant, bond and official statement printing and all other incidental expenses. Administrative fees include those of the City, the Community Facilities District, the Bond Trustee, the Special Tax Consultant and the Fiscal Agent, related to the Community Facilities District and the Bonds. Exhibit A CFD 2004 -1 City of Moorpark Page A -2 August 11, 2004 000091 EXHIBIT B RATE AND METHOD OF APPORTIONMENT FOR COMMUNITY FACILITIES DISTRICT NO. 2004 -1 OF THE CITY OF MOORPARK (Moorpark Highlands) A special tax as hereinafter defined shall be levied on and collected for Community Facilities District No. 2004 -1 (Moorpark Highlands) of the City of Moorpark ( "CFD No. 2004 -1 ") each Fiscal Year, in an amount determined by the City Council of the City of Moorpark through the application of the appropriate Special Tax for "Developed Property," "Final Map Property," and "Undeveloped Property" as described below. All of the real property in CFD No. 2004 -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. SECTION A DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre or Acreage" means shown on an Assessor's shown on an Assessor's applicable final map, recorded County parcel Parcel is equal to the the land area of an Assessor's Parcel as Parcel Map, or if the land area is not Parcel Map, the land area shown on the parcel map, condominium plan, or other map. The square footage of an Assessor's Acreage multiplied by 43,560. "Act" means the Mello -Roos Communities 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 any ordinary and necessary expense of the City of Moorpark to carry out the administration of CFD No. 2004 -1 related to the determination of the amount of the levy of Special Taxes, the collection of Special Taxes including the expenses of collecting delinquencies, the administration of Bonds, the payment of salaries and benefits of any City employee whose duties are directly related to the administration of CFD No. 2004 -1, and costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2004 -1. "Assessor's Parcel" means a lot or parcel of land designated on an Assessor's Parcel Map with an assigned Assessor's Parcel Number within the boundaries of CFD No. 2004 -1. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor's Parcel Number. City of Moorpark September 8, 2004 Community Facilities District No. 2004 -1 Page "Assigned Annual Special Tax" means the Special Tax of that name described in Section D below. "Assigned Special Tax" means the Special Tax of that name described in Section D below. "Backup Special Tax for Facilities" means the Special Tax of that name described in Section E below. "Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, notes, certificates of participation, long -term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long -term contracts, or any refunding thereof, to which Special Taxes have been pledged. "Boundary Map" means the map of the boundaries for CFD No. 2004- 1, as approved by the City Council. "Building Permit" means a permit for new construction for a residential dwelling or non - residential structure. For purposes of this definition, `Building Permit" shall not include permits for construction or installation, retaining walls, utility improvements, or other such improvements not intended for human habitation. "Building Square Footage" or "BSF" means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the building permit application for such Assessor's Parcel. "Calendar Year" means the period commencing January 1 of any year and ending the following December 31. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD No. 2004 -1" means Community Facilities District No. 2004 -1 (Moorpark Highlands) established by the City under the Act. "City" means the City of Moorpark. "City Council" means the City Council of the City, acting as the Legislative Body of CFD No. 2004 -1, or its designee. "City Police Services" means the Proportional costs of police services for and within the vicinity of CFD No. 2004 -1. City of Moorpark September 8, 2004 Community Facilities District No. 2004 -1 Pagef 0093 "Consumer Price Index" means the index published monthly by the U.S. Department of Labor, Bureau of Labor Statistics for all urban consumers in the Los Angeles- Riverside - Orange County area. "County" means the County of Ventura. "Developed Property" means all Assessor's Parcels within Zones 1, 2, 3, and 4 of CFD No. 2004 -1 for which Building Permits were issued on or before April 1 preceding the Fiscal Year for which Special Taxes are being levied, provided that such Assessor's Parcels were created on or before January 1 of the prior Fiscal Year and that each such Assessor's Parcel is associated with a Lot, as determined reasonably by the City. "Exempt Property" means all Assessor's Parcels within Zones 1, 2, 3, and 4 of CFD No. 2004 -1 designated as being exempt from the Special Tax as determined in Section J. "Final Map" means a subdivision of property evidenced by the recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or the recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots for which Building Permits may be issued without further subdivision. "Final Map Property" means all Assessor's Parcels: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) for which a Building Permit was not issued prior to the March 1 preceding the Fiscal Year in which the Special Tax is being levied. "Fiscal Year" means the period commencing on July 1 of any year and ending the following June 30. "Land Use Type" means any of the land use types listed in Tables 1 to 4 below. "Lot" means an individual legal lot created by a Final Map for which a Building Permit could or has been issued. "Maximum Special Tax" means the maximum Special Tax for Facilities and the Maximum Special Tax for Services, determined in accordance with Section C, which can be levied by CFD No. 2004 -1 in any Fiscal Year on any Assessor's Parcel within Zones 1, 2, 3, or 4. City of Moorpark September 8, 2004 Community Facilities District No. 2004 -1 Page 3 "Maximum Special Tax for Facilities" means the Maximum Special Tax, determined in accordance with Section C, that can be levied by CFD No. 2004 -1 in any Fiscal Year on any Assessor's Parcel. "Maximum Special Tax for Services" means the Maximum Special Tax, determined in accordance with Section C, that can be levied by CFD No. 2004 -1 in any Fiscal Year on any Assessor's Parcel. "Non Residential Property" means all Assessors' Parcels of Developed Property for which a building permit was issued for any type of non - residential use. "Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax for Facilities obligation for an Assessor's Parcel, as described in Section H. "Prepayment Amount" means the amount required to prepay the Annual Special Tax for Facilities obligation in full for an Assessor's Parcel, as described in Section G. "Proportionately" means that the ratio of the actual Annual Special Tax levy to the applicable Special Tax is equal for all applicable Assessor's Parcels within Zones 1, 2, 3, and 4. "Residential Property" means all Assessors' Parcels of Developed Property within Zones 1, 2, 3, and 4 of CFD No. 2004 -1 for which a building permit has been issued for purposes of constructing one or more residential dwelling units. "Special Tax" means any of the special taxes authorized to be levied by CFD No. 2004 -1 (including the Special Tax for Facilities and the Special Tax for Services) pursuant to the Act to fund the Special Tax Requirement. "Special Tax for Facilities" means any of the special taxes authorized to be levied by CFD No. 2004 -1 pursuant to the Act to fund the Special Tax Requirement for Facilities. "Special Tax for Services" means any of the special taxes authorized to be levied by CFD No. 2004 -1 pursuant to the Act to fund the Special Tax Requirement for Services. "Special Tax Requirement for Facilities" means the amount required in any Fiscal Year for CFD No. 2004 -1 to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account, and (iv) any amount required to establish or replenish any reserve funds established in association with the Bonds, (v) the collection of funds in 000095 City of Moorpark September S, 2004 Community Facilities District No. 2004 -1 Page 4 any Fiscal Year for the payment of City Police Services authorized by CFD No. 2004 -1 provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on Final Map Property or Undeveloped Property, less (vi) any amount available to pay debt service or other periodic costs on the Bonds pursuant to any applicable bond indenture, fiscal agent agreement, or trust agreement. "Special Tax Requirement for Services" means the amount determined in any Fiscal Year for CFD 2004 -1 equal to (i) the budgeted costs of the City Police Services during the current Fiscal Year, (ii) Administrative Expenses, and (iii) anticipated delinquent Special Taxes for Services based on the delinquency rate in CFD 2004 -1 for the previous Fiscal Year. "Taxable Property" means all Assessors' Parcels within Zones 1, 2, 3, and 4 of CFD No. 2004 -1 that are not Exempt Property. "Undeveloped Property" means all Assessors' Parcels within Zones 1, 2, 3, and 4 of CFD No. 2004 -1 of Taxable Property which are not Developed Property or Final Map Property. "Zone(s)" means Zone 1, 2, 3, or 4 as geographically identified on the boundary map of the CFD No. 2004 -1. "Zone 1" means the specific area identified on the Boundary Map as Zone 1 of CFD No. 2004 -1. "Zone 2" means the specific area identified on the Boundary Map as Zone 2 of CFD No. 2004 -1. "Zone 3" means the specific area identified on the Boundary Map as Zone 3 of CFD No. 2004 -1. "Zone 4" means the specific area identified on the Boundary Map as Zone 4 of CFD No. 2004 -1. SECTION B CLASSIFICATION OF ASSESSOR'S PARCELS Each Fiscal Year, beginning with Fiscal Year 2005 -2006, each Assessor's Parcel within CFD No. 2004 -1 shall be categorized into Zones 1, 2, 3, or 4 and shall be classified as Taxable Property or Exempt Property. In addition, each Fiscal Year, beginning with Fiscal Year 2005 -2006, each Assessor's Parcel of Taxable Property shall be further classified as Developed Property, Final Map Property, or Undeveloped Property. Lastly, each Fiscal Year, beginning with Fiscal Year 2005 -2006, each Assessor's Parcel of Developed Property shall further be classified as Residential Property or Non Residential Property. 000096 City of Moorpark September 8, 2004 Community Facilities District No. 2004 -1 Page 5 1. K% 3. SECTION C MAXIMUM SPECIAL TAXES FOR ZONES 1, 2, 3, AND 4 Developed Property a. The Maximum Special Tax for each Assessor's Parcel of Residential Property that is classified as Developed Property in any Fiscal Year shall be the amount determined by the greater of (i) the application of the Assigned Special Tax for Facilities or (ii) the application of the Backup Special Tax for Facilities. b. The Maximum Special Tax for each Assessor's Parcel of Non - Residential Property that is classified as Developed Property in any Fiscal Year shall be the Assigned Annual Special Tax for Facilities. c. The Maximum Special Tax for Services for each Assessor's Parcel of Residential Property that is classified as Developed Property in Fiscal Year 2004 -2005 shall be $350 per Lot. The Maximum Special Tax for Services for each Assessor's Parcel of Non - Residential Property that is classified as Developed Property in any Fiscal Year shall be $1,500 per Acre. On each July 1, commencing July 1, 2005, the Maximum Special Tax for Services for the prior Fiscal Year shall be adjusted by an amount equal to the greater of (i) two percent (2.00%), or (ii) the percentage change in the Consumer Price Index for the Calendar Year ending in December of the prior Fiscal Year. Final Map Property The Maximum Special Tax for Parcel classified as Final Ma Special Tax for Facilities. Facilities for each Assessor's Map Undeveloped Property Property shall be the Assigned The Maximum Special Tax for each Assessor's Parcel classified as Undeveloped Property shall be the Assigned Special Tax for Facilities. 000097 City of Moorpark September 8, 2004 Community Facilities District No. 2004 -1 Page 6 1. SECTION D ASSIGNED SPECIAL TAX FOR FOR ZONES 1, 2, 3, Developed Property FACILITIES AND 4 Each Fiscal Year, each Assessor's Parcel of Developed Property within Zones 1, 2, 3, and 4 shall be subject to an Assigned Special Tax. The Assigned Special Tax applicable to an Assessor's Parcel of Developed Property within Zones 1, 2, 3, and 4 for any Fiscal Year shall be determined pursuant to Tables 1 through 4 below. TABLE 1 ZONE 1 - DEVELOPED PROPERTY ASSIGNED ANNUAL SPECIAL TAX RATES FOR FACILITIES On each July 1, commencing on July 1, 2005, the Assigned Special Tax for each Assessor's Parcel of Developed Property within Zone 1 shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. «00098 City of Moorpark September S, 2004 Community Facilities District No. 2004 -1 Page 7 Assigned Annual Building Square Special Tax for Land Use Type Footage Fiscal Year 2004 -2005 1. Residential Less than 2,201 $3,600 per Unit Property 2. Residential 2,201 - 2,500 $3,726 per Unit Property 3. Residential Greater than $3,979 per Unit Property 2,500 4. Non Residential N/A $38,566 per Acre Property On each July 1, commencing on July 1, 2005, the Assigned Special Tax for each Assessor's Parcel of Developed Property within Zone 1 shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. «00098 City of Moorpark September S, 2004 Community Facilities District No. 2004 -1 Page 7 TABLE 2 ZONE 2 - DEVELOPED PROPERTY ASSIGNED ANNUAL SPECIAL TAX RATES FOR FACILITIES On each July 1, commencing on July 1, 2005, the Assigned Special Tax for each Assessor's Parcel of Developed Property within Zone 2 shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. TABLE 3 ZONE 3 - DEVELOPED PROPERTY ASSIGNED ANNUAL SPECIAL TAX RATES FOR FACILITIES Land Use Type Building Square Footage Assigned Annual 1. Residential Property Building Square Special Tax for Unit Land Use Type Footage Fiscal Year 2004 -2005 1. Residential Property Less than 1,201 $2,120 per Unit 2. Residential Property 1,201 - 1,400 $2,204 per Unit 3. Residential Property 1,401 - 1,600 $2,550 per Unit 4. Residential Property Greater than $2,987 per Unit 6. Residential Property 1, 600 3,600 $5,284 per S. Non Residential N/A $86,553 per Acre $5,452 Property Unit 8. Residential Property 3,801 - On each July 1, commencing on July 1, 2005, the Assigned Special Tax for each Assessor's Parcel of Developed Property within Zone 2 shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. TABLE 3 ZONE 3 - DEVELOPED PROPERTY ASSIGNED ANNUAL SPECIAL TAX RATES FOR FACILITIES On each July 1, commencing on July 1, 2005, the Assigned Special Tax for each Assessor's Parcel of Developed Property 0100 399 City of Moorpark September 8, 2004 Community Facilities District No. 2004 -1 Page 8 Land Use Type Building Square Footage Assigned Annual Special Tax for Fiscal Year 2004 -2005 1. Residential Property Less than 2,601 $4,232 per Unit 2. Residential Property 2,601 - 2,800 $4,358 per Unit 3. Residential Property 2,801 - 3,000 $4,484 per Unit 4. Residential Property 3,001 - 3,200 $4,652 per Unit S. Residential Property 3,201 - 3,400 $4,968 per Unit 6. Residential Property 3,401 - 3,600 $5,284 per Unit 7. Residential Property 3,601 - 3,800 $5,452 per Unit 8. Residential Property 3,801 - 4,000 $5,957 per Unit 9. Residential Property Greater 4,000 than $6,462 per Unit 10. Non Residential Property N/A $25,618 per Acre On each July 1, commencing on July 1, 2005, the Assigned Special Tax for each Assessor's Parcel of Developed Property 0100 399 City of Moorpark September 8, 2004 Community Facilities District No. 2004 -1 Page 8 2. within Zone 3 shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. TABLE 4 ZONE 4 - DEVELOPED PROPERTY ASSIGNED ANNUAL SPECIAL TAX RATES FOR FACILITIES On each July 1, commencing on July 1, 2005, the Assigned Special Tax for each Assessor's Parcel of Developed Property within Zone 4 shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. Final Map Property and Undeveloped Property Each Fiscal Year, each Assessor's Parcel of Final Map Property and Undeveloped Property within Zones 1 to 4 shall be subject to an Assigned Special Tax. The Assigned Special Tax rate for an Assessor's Parcel classified as Final Map Property and Undeveloped Property for Fiscal Year 2004 -2005 shall be $38,566 per Acre for Zone 1, $86,553 per Acre for Zone 2, $25,618 per Acre for Zone 3, and $10,684 per Acre for Zone 4. On each July 1, commencing on July 1, 2005, the Assigned Special Tax for each Assessor's Parcel of Final Map and Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. SECTION E BACKUP SPECIAL TAXES FOR FACILITIES FOR ZONES 1, 2, 3, AND 4 Each Fiscal Year, each Assessor's Parcel of Developed Property classified as Residential Property within Zones 1, 2, 3, or 4 shall be subject to a Backup Special Tax for Facilities. In each Fiscal Year, the Backup Special Tax for Facilities rate for Developed Property classified as Residential Property within a Final Map 0001-100 City of Moorpark September 8, 2004 Community Facilities District No. 2004 -1 Page 9 Assigned Annual Building Square Special Tax for Land Use Type Footage Fiscal Year 2004 -2005 1. Residential Property Less than 3,401 $5,831 per Unit 2. Residential Property 3,401 - 3,700 $6,252 per Unit 3. Residential Property 3,701 - 4,000 $6,589 per Unit 4. Residential Property Greater than 4,000 $7,094 per Unit 5. Non Residential N/A $10,684 per Acre Property On each July 1, commencing on July 1, 2005, the Assigned Special Tax for each Assessor's Parcel of Developed Property within Zone 4 shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. Final Map Property and Undeveloped Property Each Fiscal Year, each Assessor's Parcel of Final Map Property and Undeveloped Property within Zones 1 to 4 shall be subject to an Assigned Special Tax. The Assigned Special Tax rate for an Assessor's Parcel classified as Final Map Property and Undeveloped Property for Fiscal Year 2004 -2005 shall be $38,566 per Acre for Zone 1, $86,553 per Acre for Zone 2, $25,618 per Acre for Zone 3, and $10,684 per Acre for Zone 4. On each July 1, commencing on July 1, 2005, the Assigned Special Tax for each Assessor's Parcel of Final Map and Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. SECTION E BACKUP SPECIAL TAXES FOR FACILITIES FOR ZONES 1, 2, 3, AND 4 Each Fiscal Year, each Assessor's Parcel of Developed Property classified as Residential Property within Zones 1, 2, 3, or 4 shall be subject to a Backup Special Tax for Facilities. In each Fiscal Year, the Backup Special Tax for Facilities rate for Developed Property classified as Residential Property within a Final Map 0001-100 City of Moorpark September 8, 2004 Community Facilities District No. 2004 -1 Page 9 shall be the rate per Lot calculated according to the following formula: R x A B= ------------------- L The terms above have the following meanings: B = Backup Special Tax for Facilities per Lot in each Fiscal Year. R = Maximum Special Tax for Facilities rate per Acre for Undeveloped Property for the applicable Fiscal Year. A = Acreage of Developed Property classified or to be classified as Residential Property in such Final Map. L = Lots in the Final Map which are classified or to be classified as Residential Property. Each July 1, commencing on July 1, 2005, the Backup Special Tax for Facilities for each Assessor's Parcel shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. Notwithstanding the foregoing, if all or any portion of the Final Map(s) described in the preceding paragraph is subsequently changed or modified, then the Backup Special Tax for each Assessor's Parcel of Developed Property classified or to be classified as Residential Property in such Final Map area that is changed or modified shall be a rate per square foot of Acreage calculated as follows: 1. Determine the total Backup Special Tax for Facilities anticipated to apply to the changed or modified Final Map area prior to the change or modification. 2. The result of paragraph 1 above shall be divided by the Acreage of Developed Property classified or to be classified as Residential Property which is ultimately expected to exist in such changed or modified Final Map area, as reasonably determined by the City. 3.The result of paragraph 2 above shall be divided by 43,560. The result is the Backup Special Tax for Facilities per square foot of Acreage which shall be applicable to Assessor's Parcels of Developed Property classified as Residential Property in such changed or modified Final Map area for all remaining Fiscal Years in which the Special Tax for Facilities may be levied. 000101- City of Moorpark September 8, 2004 Community Facilities District No. 2004 -1 Page 10 SECTION F METHOD OF APPORTIONMENT OF THE SPECIAL TAX FOR FACILITIES AND THE SPECIAL TAX FOR SERVICES FOR ZONES 1, 2, 3, AND 4 1. Commencing Fiscal Year 2005 -2006 and for each subsequent Fiscal Year, the City Council shall levy a Special Tax on all Taxable Property within Zones 1, 2, 3, and 4 until the amount of Special Tax equals the Special Tax Requirement in accordance with the following steps: Step One: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property within Zones 1, 2, 3, and 4 at up to 1000 of the applicable Assigned Special Tax for Facilities rates as presented in Tables 1, 2, 3, and 4 as needed to satisfy the Special Tax Requirement for Facilities. Step Two: If additional moneys are needed to satisfy the Special Tax Requirement for Facilities after the first step has been completed, the Special Tax for Facilities shall be levied Proportionately on each Assessor's Parcel of Final Map Property within Zones 1, 2, 3, and 4 at up to 1000 of the Assigned Special Tax for Facilities applicable to each such Assessor's Parcel as needed to satisfy the Special Tax Requirement for Facilities. Step Three: If additional moneys are needed to satisfy the Special Tax Requirement for Facilities after the first two steps have been completed, the Special Tax for Facilities shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property within Zones 1, 2, 3, and 4, excluding any Undeveloped Property pursuant to Section J, at up to 1000 of the Assigned Special Tax for Facilities applicable to each such Assessor's Parcel as needed to satisfy the Special Tax Requirement for Facilities. Step Four: If additional moneys are needed to satisfy the Special Tax Requirement for Facilities after the first three steps have been completed, then for each Assessor's Parcel of Developed Property within Zones 1, 2, 3, and 4 whose Maximum Special Tax for Facilities is the Backup Special Tax for Facilities shall be increased Proportionately from the Assigned Special Tax 000:102 City of Moorpark September 8, 2004 Community Facilities District No. 2004 -1 Page 11 for Facilities up to 1000 of the Backup Special Tax for Facilities as needed to satisfy the Special Tax Requirement for Facilities. Step Five: If additional moneys are needed to satisfy the Special Tax Requirement for Facilities after the first four steps have been completed, the Special Tax for Facilities shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property within Zones 1, 2, 3, and 4 classified as Undeveloped Property pursuant to Section J at up to 100% of the Assigned Special Tax for Facilities applicable to each such Assessor's Parcel as needed to satisfy the Special Tax Requirement for Facilities. Notwithstanding the above, under no circumstances will the Special Taxes for Facilities levied against any Assessor's Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent (10%) per Fiscal Year as a consequence of delinquency or default by the owner of any other Assessor's Parcel within CFD No. 2004 -1. 2. Commencing Fiscal Year 2005 -2006 and for each subsequent Fiscal Year, the City Council shall levy a Special Tax for Services on all Taxable Property within CFD No. 2004 -1 until the amount of Special Tax for Services equals the Special Tax Requirement for Services as follows: The Maximum Special Tax for Services shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 1000 of the applicable Maximum Special Tax for Services as needed to satisfy the Special Tax Requirement for Services. Notwithstanding the above, under no circumstances will the Special Taxes for Services levied against any Assessor's Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent (10%) per Fiscal Year as a consequence of delinquency or default by the owner of any other Assessor's Parcel within CFD No. 2004 -1. SECTION G PREPAYMENT OF SPECIAL TAX FOR FACILITIES The following definitions apply to this Section G: "CFD Public Facilities" means $35,600,000 expressed in 2004 dollars, which shall increase by the Construction Inflation Index on January 1, 2005, and on each January 1 thereafter, or such lower ()oio3 City of Moorpark September S, 2004 Community Facilities District No. 2004 -1 Page 12 number as (i) shall be determined by the City as sufficient to provide the public facilities under the authorized bonding program for CFD No. 2004 -1, or (ii) shall be determined by the City 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. "Construction Fund" means an account specifically identified in the Indenture or functionally equivalent to hold funds which are currently available for expenditure to acquire or construct public facilities eligible under CFD No. 2004 -1. "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 City 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 public facility costs available to be funded through existing construction or escrow accounts or funded by the Outstanding Bonds, and minus public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment. "Outstanding Bonds" means all previously issued bonds issued and secured by the levy of Special Tax which will remain outstanding after the first interest and /or principal payment date following the current Fiscal Year, excluding bonds to be redeemed at a later date with the proceeds of prior prepayments of the Maximum Special Tax. The Special Tax for Facilities obligation of an Assessor's Parcel of Developed Property, an Assessor's Parcel of Final Map Property or Undeveloped Property for which a Building Permit has been issued or an Assessor's Parcel of Undeveloped Property that is classified as Undeveloped Property pursuant to Section J. may be prepaid in full, provided that there are no delinquent Special Taxes, penalties, or interest charges outstanding with respect to such Assessor's Parcel at the time the Special Tax obligation would be prepaid. The Prepayment Amount for an Assessor's Parcel eligible for prepayment shall be determined as described below. An owner of an Assessor's Parcel intending to prepay the Special Tax for Facilities obligation shall provide the City with written notice of intent to prepay, and within 5 days of receipt of such notice, the City shall notify such owner of the amount of the non - 000104 City of Moorpark September 8, 2004 Community Facilities District No. 2004 -1 Page 13 refundable deposit determined to cover the cost to be incurred by CFD No. 2004 -1 in calculating the proper amount of a prepayment. Within 15 days of receipt of such non - refundable deposit, the City shall notify such owner of the prepayment amount of such Assessor's Parcel. The Prepayment Amount for each applicable Assessor's Parcel shall be calculated according to the following formula (capitalized terms defined below): Bond Redemption Amount plus Redemption Premium plus Future Facilities Amount plus Defeasance plus Administrative Fee less Reserve Fund Credit equals Prepayment Amount As of the date of prepayment, the Prepayment Amount shall be calculated as follows: 1. For Assessor's Parcels of Developed Property, compute the Assigned Special Taxes and the Backup Special Taxes applicable to the Assessor's Parcel. For Assessor's Parcels of Final Map Property or Undeveloped Property, excluding any Undeveloped Property pursuant to Section J., compute the Assigned Special Tax and the Backup Special Tax applicable to the Assessor's Parcel as though it was already designated as Developed Property based upon the Building Permit issued or to be issued for that Assessor's Parcel. For Assessor's Parcels classified as Undeveloped Property pursuant to Section J., compute the Assigned Special Tax. 2. For each Assessor's Parcel of Developed Property, Final Map Property or Undeveloped Property to be prepaid, (a) divide the Assigned Special Tax computed pursuant to paragraph 1 for such Assessor's Parcel by the sum of the estimated Assigned Special Tax applicable to all Assessor's Parcels of Taxable Property at build out, as reasonably determined by the City, and (b) divide the Backup Special Tax computed pursuant to paragraph 1 for such Assessor's Parcel by the sum of the estimated Backup Special Tax applicable to all Assessor's Parcels of Taxable Property at build out, as reasonably determined by the City. i.➢00105 City of Moorpark September 8, 2004 Community Facilities District No. 2004 -1 Page 14 3. Multiply the larger quotient computed pursuant to paragraph 2(a) or 2(b) by Outstanding Bonds. The product shall be the "Bond Redemption Amount ". 4. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed with the proceeds of the Bond Redemption Amount. This product is the "Redemption Premium." 5. Compute the Future Facilities Cost. 6. Multiply the larger quotient computed pursuant to paragraph 2 (a) or 2 (b) by the amount determined pursuant to paragraph 5. to determine the Future Facilities Cost to be prepaid (the "Future Facilities Amount "). 7. Compute the amount needed to pay interest on the Bond Redemption Amount, the Redemption Premium, and the Reserve Fund Credit (see step 11) to be redeemed with the proceeds of the Prepayment Amount until the earliest call date for the Outstanding Bonds. 8. Estimate the amount of interest earnings to be derived from the reinvestment of the Bond Redemption Amount plus the Redemption Premium until the earliest call date for the Outstanding Bonds. 9. Subtract the amount computed pursuant to paragraph 8 from the amount computed pursuant to paragraph 7. This difference is the "Defeasance." 10. Estimate the administrative fees and expenses associated with the prepayment, including the costs of computation of the Prepayment Amount, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption. This amount is the "Administrative Fee." 11. Calculate the "Reserve Fund Credit" as the lesser of: (a) the expected reduction in the applicable reserve requirements, if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirements in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the applicable reserve funds on the prepayment date. Notwithstanding the foregoing, if the reserve fund requirement is satisfied by a surety bond or other 000106 City of Moorpark September S, 2004 Community Facilities District No. 2004 -1 Page 15 instrument at the time of the prepayment, then no Reserve Fund Credit shall be given. Notwithstanding the foregoing, the Reserve Fund Credit shall in no event be less than $0. 12. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance, and the Administrative Fee, less the Reserve Fund Credit. With respect to the Special Tax for Facilities obligation that is prepaid pursuant to this Section G, the City Council shall indicate in the records of CFD No. 2004 -1 that there has been a prepayment of the Special Tax for Facilities obligation and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30) days of receipt of such prepayment to indicate the prepayment of the Special Tax for Facilities obligation and the release of the Special Tax for Facilities lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay such Special Taxes for Facilities shall cease. Notwithstanding the foregoing, no prepayment will be allowed unless the amount of Special Tax for Facilities that may be levied on Taxable Property, net of Administrative Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments on all currently Outstanding Bonds in each future Fiscal Year. SECTION H PARTIAL PREPAYMENT OF SPECIAL TAX FOR FACILITIES The Special Tax for Facilities obligation of an Assessor's Parcel of Developed Property or an Assessor's Parcel of Undeveloped Property for which a building permit has been issued and will be classified as Developed Property in the next Fiscal Year, as calculated in this Section H. below, may be partially prepaid, provided that there are no delinquent Special Taxes, penalties, or interest charges outstanding with respect to such Assessor's Parcel at the time the Special Tax for Facilities obligation would be prepaid. The Partial Prepayment Amount shall be calculated according to the following formula: PP = PG x F The terms above have the following meanings: PP = the Partial Prepayment Amount. City of Moorpark September 8, 2004 Community Facilities District No. 2004 -1 Page 16 PG = the Prepayment Amount calculated according to Section G. F = the percent by which the owner of the Assessor's Parcel is partially prepaying the Special Tax obligation. With respect to any Assessor's Parcel that is partially prepaid, the City Council shall indicate in the records of CFD No. 2004 -1 that there has been a partial prepayment of the Special Tax for Facilities obligation and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30) days of receipt of such partial prepayment of the Special Tax for Facilities obligation, to indicate the partial prepayment of the Special Tax for Facilities obligation and the partial release of the Special Tax for Facilities lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay such prepaid portion of the Special Tax for Facilities for shall cease. Notwithstanding the foregoing, no partial prepayment will be allowed unless the amount of Special Tax for Facilities that may be levied on Taxable Property after such partial prepayment, net of Administrative Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments on all currently Outstanding Bonds in each future Fiscal Year. SECTION I TERMINATION OF SPECIAL TAX For each Fiscal Year that any Bonds are outstanding the Special Tax for Facilities shall be levied on all Assessor's Parcels within Zones 1, 2, 3, and 4 subject to the Special Tax for Facilities. If any delinquent Special Tax for Facilities remain uncollected prior to or after all Bonds are retired, the Special Tax for Facilities may be levied to the extent necessary to reimburse CFD No. 2004 -1 for uncollected Special Tax for Facilities associated with the levy of such Special Taxes for Facilities, but not later than the 2044- 45 Fiscal Year. The Special Tax for Services shall be levied for as long as the Special Tax for Services is needed to meet the Special Tax Requirement for Services as determined at the sole discretion of the City Council. SECTION J EXEMPTIONS The City shall classify as Exempt Property (i) owned by the State of California, Federal governments, (ii) Assessor's Parcels which are City of Moorpark Community Facilities District No. 2004 -1 Assessor's Parcels or other local used as places of i. pdj jQ V 0 i o1 l_l September 8, 2004 Page 17 worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor's Parcels used exclusively by a homeowners' association, or (iv) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, provided that no such classification would reduce the sum of all Taxable Property to (a) less than 9.90 Acres for Tax Zone 1, (b) less than 3.06 Acres for Tax Zone 2, (c) less than 67.17 Acres for Tax Zone 3, or (d) less than 23.64 Acres for Tax Zone 4. Notwithstanding the above, the City Council shall not classify an Assessor's Parcel as Exempt Property if such classification would reduce the sum of all Taxable Property to (a) less than 9.90 Acres for Tax Zone 1, (b) less than 3.06 Acres for Tax Zone 2, (c) less than 67.17 Acres for Tax Zone 3, or (d) less than 23.64 Acres for Tax Zone 4. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than (a) less than 9.90 Acres for Tax Zone 1, (b) less than 3.06 Acres for Tax Zone 2, (c) less than 67.17 Acres for Tax Zone 3, or (d) less than 23.64 Acres for Tax Zone 4 will continue to be classified as Undeveloped Property, and will continue to be subject to Special Taxes accordingly. SECTION K APPEALS Any property owner claiming that the amount or application of the Special Tax is not correct may file a written notice of appeal with the City Council not later than twelve months after having paid the first installment of the Special Tax that is disputed. A representatives) of CFD No. 2004 -1 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the representative's decision requires that the Special Tax for an Assessor's Parcel be modified or changed in favor of the property owner, a cash refund shall not be made (except for the last year of levy), but an adjustment shall be made to the Special Tax on that Assessor's Parcel in the subsequent Fiscal Year(s). SECTION L MANNER OF COLLECTION The Annual Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2004 -1 may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations. 000109 City of Moorpark September 8, 2004 Community Facilities District No. 2004 -1 Page 18 m i� �qq C) ui i O W N N ZONE,' 3 16'96.03 PROPOSED BOUNDARY MAP OF THE' CITY OF MOORPARK COMMUNITY FACILITIES DISTRICT NO. 2004 -1 (MOORPARK HIGHLANDS) COUNTY OF VENTURA, STATE OF CALIFORNIA HWY DEDICATION 'LONE 2 p 'LONE.' 3 m 920 P ZONE, 3 N 411.[32' Q ?s w O r� ZONE. 3 ZONE' 1 o p \ SRAPNC / - 733.3' o `5 1849.94' _ NAP v 602 6 h 600' 0, "? p q e � Co N � C p v N h p p / co N FILED IN THE OFFICE OF THE CITY CLERK Of' THE CITY Or' MOORPARK, THIS _.__. DAY UN' 2004 CITY CLERK 1 HEREBY CERTIFY THAT THE WITHIN MAP SHOWING BOUNDARIES OF THE CITY OF MOORPARK COMMUNITY FACILITIES' DISTRICT N0. 2004 1 ( MOORPARK HIGHLANDS), COUNTY OF VENTURA. STATE OF CALIFORNIA, WAS APPROVED BY THE CITY COUNCIL OF THE CITY OF MOORPARK AT A REGULARLY SCHEDULED MEETINC THEREOF, HELD ON THE - DAY OF ...._.__., 2004 BY ITS' RESOLUTION N0.5'. CITY CLERK THE BOUNDARIES OF THE DISTRICT INCLUDE,' ASSESOR PARCEL NUMBERS 500 -0 -160 -545, -555, & -705; 500 -0 -- 270 -075, -195, & -205, 500 - 0- 240 -035. SECTION 33. TOWNSHIP 3 NORTH. & SECTION 4, TOWNSHIP 2 NORTH, RANGE 19 WEST FILED THIS _ DAY OF --------- 2004, AT THE HOUR OF _ - O'CLOCK M. IN BOOK _ OF MAPS OF ASSESSMENT AND COMMUNITY FACILITIES DISTRICTS AT PACE _._._. AND AS INSTRUMENT N0. ________ IN THE OFFICE OF THE COUNTY RECORDER, IN THE COUNTY OF VENTURA. STATE' OF CALIFORNIA. COUNTY RECORDER, COUNTY OF VF.N'TIIRA PACE 1 OF' I ATTACHMENT RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA DECLARING ITS INTENTION TO INCUR A BONDED INDEBTEDNESS TO FINANCE THE ACQUISITION AND CONSTRUCTION OF CERTAIN PUBLIC FACILITIES AND THE PAYMENT OF CERTAIN FEES IN AND FOR THE CITY OF MOORPARK COMMUNITY FACILITIES DISTRICT NO. 2004 -1 (MOORPARK HIGHLANDS) WHEREAS, The Council has this date adopted its Resolution of Intention to Establish a Community Facilities District, stating its intention to form the City of Moorpark Community Facilities District No. 2004 -1 (Moorpark Highlands) (the "CFD ") pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, Chapter 2.5 of Part 1 of Division 2 of Title 5 of the California Government Code (the "Act "), for the purpose of financing certain public improvements (the "Facilities ") and services, as further provided in that Resolution; and WHEREAS, This Council estimates the amount required for the financing of the costs of the Facilities to be the sum of not to exceed $43,750,000; and WHEREAS, In order to finance the costs of the Facilities it is necessary to incur bonded indebtedness in the amount of not to exceed $43,750,000 on behalf of the CFD; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Bonded Debt. It is necessary to incur bonded indebtedness within the boundaries of the proposed CFD in the amount of up to $43,750,000 to finance the costs of the Facilities. SECTION 2. Purposes of Bonded Debt. The bonded indebtedness is proposed to be incurred for the purpose of financing the costs of the Facilities, including acquisition and improvement costs and all costs incidental to or connected with the accomplishment of said purposes and of the financing thereof, as permitted by Section 53345.3 of the Act. SECTION 3. Terms of Bonds. This Council, acting as legislative body for the CFD intends to authorize the issuance and sale of bonds in the maximum aggregate principal amount of not to exceed $43,750,000, bearing interest payable semi - annually or in such other manner as this Council shall determine, at a rate not to exceed the maximum rate of interest as may be authorized by applicable law at the time of sale of such bonds, and maturing not to exceed 31 years from the date of the issuance of said bonds. 000111 Resolution No. 2004 - Page 2 SECTION 4. Public Hearing. September 15, 2004, at 7:00 p.m., or as soon as possible thereafter, in the City Council Chambers, Moorpark Community Center, 799 Moorpark Avenue, Moorpark, California 93021, be, and the same are hereby appointed and fixed as the time and place when and where this Council, as legislative body for the District, will conduct a public hearing on the proposed debt issue and consider and finally determine whether the public interest, convenience and necessity require the issuance of bonds of the of the City on behalf of the CFD. SECTION 5. Notice of Hearing. The City Clerk is hereby directed to cause notice of said public hearing to be given by publication one time in a newspaper of general circulation circulated within the CFD. The publication of said notice shall be completed at least seven (7) days before the date herein set for said public hearing. The notice shall be substantially in the form specified in Section 53346 of the Act, with the form summarizing the provisions hereof hereby specifically approved. SECTION 6. Certification. The City Clerk shall certify to the adoption of this resolution and cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 15th day of September, 2004. Patrick Hunter, Mayor ATTEST: Deborah S. Traffenstedt, City Clerk 2 000112 ATTACHMENT 3 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, DECLARING ITS INTENTION TO ESTABLISH THE CITY OF MOORPARK COMMUNITY FACILITIES DISTRICT NO. 2004 -2 ( MOORPARK VISTA) AND TO LEVY A SPECIAL TAX THEREIN TO FINANCE THE ACQUISITION AND CONSTRUCTION OF CERTAIN PUBLIC FACILITIES AND THE PAYMENT OF CERTAIN FEES AND POLICE PROTECTION SERVICES IN AND FOR SUCH COMMUNITY FACILITIES DISTRICT WHEREAS, Under the Mello -Roos Community Facilities Act of 1982, as amended (the "Act "), Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing at Section 53311, of the California Government Code, this Council is authorized to establish a community facilities district and to act as the legislative body for such community facilities district; and WHEREAS, This Council, having received indications of interest on behalf of the owners of the areas of land proposed to be included in a proposed community facilities district, desires to proceed with the establishment of a community facilities district in order to finance costs of public infrastructure necessary or incidental to development in the City, which may include the payment of fees related thereto, and for the provision of police protection services related to new development; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Authority. This Council proposes to conduct proceedings to establish a community facilities district pursuant to the Act. SECTION 2. Name of CFD. The name proposed for the community facilities district is the City of Moorpark Community Facilities District No. 2004 -2 (Moorpark Vista) (the "CFD "). 000113 Resolution No. 2004 - Page 2 SECTION 3. Boundaries Described. The proposed boundaries of the CFD are as shown on the Proposed Boundary Map attached as Exhibit C, which boundaries are hereby preliminarily approved and to which map reference is hereby made for further particulars. The City Clerk is hereby directed to record, or cause to be recorded, said map of the boundaries of the CFD in the office of the County Recorder within fifteen days of the date of adoption of this Resolution, but in any event at least fifteen days prior to the public hearing specified in paragraph 10 below. SECTION 4. Facilities and Services. The type of public facilities and services proposed to be financed by the CFD and pursuant to the Act shall consist of those items listed as Facilities (the "Facilities ") and services (the "Services ") on Exhibit A hereto and hereby incorporated herein. The Council hereby finds and determines that the public interest will not be served by allowing the property owners in the CFD to enter into a contract in accordance with Section 53329.5(a) of the Act. Notwithstanding the foregoing, the Council, on behalf of the CFD, may enter into one or more contracts directly with any of the property owners with respect to the construction and /or acquisition of any portion of the Facilities. Certain of the public facilities proposed to be provided within the CFD may include facilities to be owned by other public entities and as to each entity, the City proposes to enter into a separate Joint Community Facilities Agreement pursuant to Section 53316.2 of the Act, whereby, if such applicable facilities are constructed in accordance with required specifications and standards, each entity will accept such facilities for operation and maintenance and the City will pay for such acquisition costs under appropriate conditions and subject to an acquisition agreement between the City and certain owners of property in the District. The City Council hereby finds that such joint facilities agreements would be beneficial to the residents of the City. The City Council hereby authorizes the Assistant City Manager or such other person or persons as he may designate to execute such joint facilities agreements, for and in the name and on behalf of the City and the CFD, in such forms, together with any additions thereto or changes therein deemed necessary or advisable by such officer executing such document upon consultation with bond counsel to the City. 000114 nnr -ccFi •A7AArIu i Resolution No. 2004 - Page 3 SECTION 5. Special Tax. Except to the extent that funds are otherwise available to the CFD to pay for the Facilities and Services, and /or the principal and interest as it becomes due on bonds issued by the City for the CFD to construct and /or acquire the Facilities, a special tax (the "Special Tax ") sufficient to pay the costs thereof, secured by recordation of a continuing lien against all non - exempt real property in the CFD, will be levied annually within the CFD, and collected in the same manner as ordinary ad valorem property taxes, or in such other manner as this Council or its designee shall determine, including direct billing of the affected property owners. The proposed rate and method of apportionment of the Special Tax among the parcels of real property within the CFD in sufficient detail to allow each landowner within the proposed CFD to estimate the maximum amount such owner will have to pay, are described in Exhibit B attached hereto and hereby incorporated herein. This Council hereby finds that the provisions of Section 53313.6, 53313.7 and 53313.9 of the Act (relating to adjustments to ad valorem property taxes and schools financed by a community facilities district) are inapplicable to the proposed CFD. SECTION 6. Exempt Property. Except as may otherwise be provided by law or by the rate and method of apportionment of the Special Tax for the CFD, all lands owned by any public entity, including the United States, the State of California and the City, or any departments or political subdivisions thereof, shall be omitted from the levy of the Special Tax. In the event that a portion of the property within the CFD shall become for any reason exempt, wholly or in part, from the levy of the Special Tax, this Council will, on behalf of the CFD, increase the levy to the extent necessary upon the remaining property within the CFD which is not exempt in order to yield the required debt service payments and other annual expenses of the CFD, if any, subject to the provisions of the rate and method of apportionment of the Special Tax. SECTIION 7. Election. be subject to at a special by mailed or proposed CFD, portion of an nn 1gqP1-A17Ar1;Q I the approval c election. The hand - delivered with each owns The levy of the Special Tax shall E the qualified electors of the CFD proposed voting procedure shall be ballot among the landowners in the r having one vote for each acre such owner owns in the CFD. The acre or Council (A)Oils Resolution No. 2004 - Page 4 hereby determines that the Facilities and Services are necessary to meet increased demands placed upon local agencies as the result of development occurring within the CFD. SECTION 8. Special Tax Bonds. It is the intention of this Council, acting as the legislative body for the CFD, to cause bonds of the City to be issued for the CFD pursuant to the Act to finance in whole or in part the construction and /or acquisition of the Facilities. The bonds shall be in an aggregate principal amount not to exceed $20,000,000, shall be issued in such series and bear interest payable semi - annually or in such other manner as this Council shall determine, at a rate not to exceed the maximum rate of interest as may be authorized by applicable law at the time of sale of such bonds, and shall mature not to exceed 35 years from the date of the issuance thereof. SECTION 9. CFD Report. The City Manager, as the officer having charge and control of the Facilities in and for the CFD, or the designee of such official, is hereby directed to study said proposed Facilities and to make, or cause to be made, and file with the City Clerk a report in writing, (the "CFD Report ") presenting the following: (a) A description of the Facilities and Services by type which will be required to adequately meet the needs of the CFD. (b) An estimate of the fair and reasonable cost of the Facilities and Services including the cost of acquisition of lands, rights -of -way and easements, any physical facilities required in conjunction therewith and incidental expenses in connection therewith, including the costs of the proposed bond financing and all other related costs as provided in Section 53345.3 of the Act. The CFD Report shall be made a part of the record of the public hearing specified below. SECTION 10. Public Hearing. October 20, 2004, at 7:00 p.m. or as soon as possible thereafter, in the City Council Chambers, Moorpark Community Center, 799 Moorpark Avenue, Moorpark, California 93021, be, and the same are hereby 000116 n0rccz:1-A'7ff1;Q i Resolution No. 2004 - Page 5 appointed and fixed as the time and place when and where this Council, as legislative body for the CFD, will conduct a public hearing on the establishment of the CFD and consider and finally determine whether the public interest, convenience and necessity require the formation of the CFD and the levy of the Special Tax. SECTION 11. Notice of Hearing. The City Clerk is hereby directed to cause notice of the public hearing to be given by publication one time in a newspaper published in the area of the CFD. The publication shall be completed at least seven days before the date of the public hearing referenced in Section 10. The notice shall be substantially in the form specified in Section 53322 of the Act, with the form summarizing the provisions hereof hereby specifically approved. SECTION 12. Certification. The City Clerk shall certify to the adoption of this resolution and cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 15th day of September, 2004. Patrick Hunter, Mayor ATTEST: Deborah S. Traffenstedt, City Clerk Attachments: Exhibit A Listing of Authorized Facilities Exhibit B Special Tax Report Exhibit C District Boundary Map 00011'; nnrccFi •f7ffsu i Exhibit A Facilities and Services List City of Moorpark Community Facilities District No. 2004 -2 (Moorpark Vistas) Facilities The Facilities which are proposed to be financed with the proceeds of the sale of bonds of the proposed community facilities district, or the payment of the fees to the appropriate jurisdiction with respect to such facilities proposed to be financed with the proceeds of the sale of bonds of the proposed community facilities district, generally described as follows: • City of Moorpark Infrastructure, including Development Impact Fees (i.e. Police Facilities, Fire Facilities /Equipment, Streets /Minor Bridges /Culverts, Traffic Signals /Controllers, Storm Drainage and Retention Facilities, General Facilities /Vehicles /Equipment, Open Space Acquisition, Park Land /Facilities, Community Center, Library Facilities /Collection and Major Bridge, Freeway Overpass & Ramp Improvements.) • Street Improvements for Walnut Canyon Road, Wickes Road, North Hills Parkway, and Spring Road (including, but not limited to, the associated sidewalks, traffic controls, street lighting, curb and gutter, pedestrian access ramps, grading, design) • Storm Drainage and Retention Facilities • Calleguas Water District Capital Fee • School Fees • Ventura County Flood Control District Fees • County Water /Sewer Improvements and Fees • Public Park, Recreation or Open Space Facilities • Landscaping of Public Streets, Right -Of -Ways, Storm Drain Facilities, Slopes, Mitigation Monitoring and Appurtenant Facilities The foregoing description of the types of Facilities eligible to be financed is general in nature and includes any appurtenant work and incidental expenses relating to the Facilities. The final nature and location of the facilities will be determined upon the preparation of final plans and specifications for such facilities. Exhibit A CFD 2004 -2 City of Moorpark Page A -1 August 11, 2004 000118 Services Service for the district include funding for Police services within or in the vicinity of the District, in addition to those services provided in the territory of the District and do not supplant services already available within that territory, to the extent authorized by the Mello -Roos Community Facilities Act of 1982, as amended. Other The bond related expenses authorized include the City, underwriters discount, financial advisor, appraisals, reserve fund deposit, capitalized interest, bond counsel, disclosure counsel, special tax consultant, bond and official statement printing and all other incidental expenses. Administrative fees include those Facilities District, the Bond Consultant and the Fiscal Agent, Facilities District and the Bonds. of the City, Trustee, the related to the Community Special Tax the Community Exhibit A CFD 2004 -2 City of Moorpark Page A -2 August 11, 2004 000119 EXHIBIT B RATE AND METHOD OF APPORTIONMENT FOR COMMUNITY FACILITIES DISTRICT NO. 2004 -2 OF THE CITY OF MOORPARK (Moorpark Vistas) A special tax as hereinafter defined shall be levied on and collected Community Facilities District No. 2004 -2 (Moorpark Vistas) of the City of Moorpark ( "CFD No. 2004 -2 ") each Fiscal Year, in an amount determined by the City Council of the City of Moorpark through the application of the appropriate Special Tax for "Developed Property," "Final Map Property," and "Undeveloped Property" as described below. All of the real property in CFD No. 2004 -2, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided. SECTION A DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre or Acreage" means shown on an Assessor's shown on an Assessor's applicable final map, recorded County parcel Parcel is equal to the the land area of an Assessor's Parcel as Parcel Map, or if the land area is not Parcel Map, the land area shown on the parcel map, condominium plan, or other map. The square footage of an Assessor's Acreage multiplied by 43,560. "Act" means the Mello -Roos Communities 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 any ordinary and necessary expense of the City of Moorpark to carry out the administration of CFD No. 2004 -2 related to the determination of the amount of the levy of Special Taxes, the collection of Special Taxes including the expenses of collecting delinquencies, the administration of Bonds, the payment of salaries and benefits of any City employee whose duties are directly related to the administration of CFD No. 2004 -2, and costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2004 -2. "Assessor's Parcel" means a lot or parcel of land designated on an Assessor's Parcel Map with an assigned Assessor's Parcel Number within the boundaries of CFD No. 2004 -2. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor's Parcel Number. City of Moorpark September S, 2004 Community Facilities District No. 2004 -2 Page () ()012.0 "Assigned Annual Special Tax" means the Special Tax of that name described in Section D below. "Assigned Special Tax" means the Special Tax of that name described in Section D below. "Backup Special Tax for Facilities" means the Special Tax of that name described in Section E below. "Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, notes, certificates of participation, long -term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long -term contracts, or any refunding thereof, to which Special Taxes have been pledged. "Boundary Map" means the map of the boundaries for CFD No. 2004- 2, as approved by the City Council. "Building Permit" means a permit for new construction for a residential dwelling or non - residential structure. For purposes of this definition, "Building Permit" shall not include permits for construction or installation, retaining walls, utility improvements, or other such improvements not intended for human habitation. "Building Square Footage" or "BSF" means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the building permit application for such Assessor's Parcel. "Calendar Year" means the period commencing January 1 of any year and ending the following December 31. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD No. 2004 -2" means Community Facilities District No. 2004 -2 (Moorpark Vistas) established by the City under the Act. "City" means the City of Moorpark. "City Council" means the City Council of the City, acting as the Legislative Body of CFD No. 2004 -2, or its designee. "City Police Services" means the Proportional costs of police services for and within the vicinity of CFD No. 2004 -2. City of Moorpark September 8, 2004 Community Facilities District No. 2004 -2 Page 20001 -21 "Consumer Price Index" means the index published monthly by the U.S. Department of Labor, Bureau of Labor Statistics for all urban consumers in the Los Angeles- Riverside - Orange County area. "County" means the County of Ventura. "Developed Property" means all Assessor's Parcels for which Building Permits were issued on or before April 1 preceding the Fiscal Year for which Special Taxes are being levied, provided that such Assessor's Parcels were created on or before January 1 of the prior Fiscal Year and that each such Assessor's Parcel is associated with a Lot, as determined reasonably by the City. "Exempt Property" means all Assessor's Parcels designated as being exempt from the Special Tax as determined in Section J. "Final Map" means a subdivision of property evidenced by the recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or the recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots for which Building Permits may be issued without further subdivision. "Final Map Property" means all Assessor's Parcels: (i) that are included in a Final Map that was recorded prior to the January 1St preceding the Fiscal Year in which the Special Tax is being levied, and (ii) for which a Building Permit was not issued prior to the March 1 preceding the Fiscal Year in which the Special Tax is being levied. "Fiscal Year" means the period commencing on July 1 of any year and ending the following June 30. "Land Use Type" means any of the land use types listed in Table 1 below. "Lot" means an individual legal lot created by a Final Map for which a Building Permit could or has been issued. "Maximum Special Tax" means the maximum Special Tax for Facilities and the Maximum Special Tax for Services, determined in accordance with Section C, which can be levied by CFD No. 2004 -2 in any Fiscal Year on any Assessor's Parcel. "Maximum Special Tax for Facilities" means the Maximum Special Tax, determined in accordance with Section C, that can be levied by CFD No. 2004 -2 in any Fiscal Year on any Assessor's Parcel. 000122 City of Moorpark September 8, 2004 Community Facilities District No. 2004 -2 Page 3 "Maximum Special Tax for Services" means the Maximum Special Tax, determined in accordance with Section C, that can be levied by CFD No. 2004 -2 in any Fiscal Year on any Assessor's Parcel. "Non Residential Property" means all Assessors' Parcels of Developed Property for which a building permit was issued for any type of non - residential use. "Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax for Facilities obligation for an Assessor's Parcel, as described in Section H. "Prepayment Amount" means the amount required to prepay the Annual Special Tax for Facilities obligation in full for an Assessor's Parcel, as described in Section G. "Proportionately" means that the ratio of the actual Annual Special Tax levy to the applicable Special Tax is equal for all applicable Assessors' Parcels. "Residential Property" means all Assessors' Parcels of Developed Property within CFD No. 2004 -2 for which a building permit has been issued for purposes of constructing one or more residential dwelling units. "Special Tax" means any of the special taxes authorized to be levied by CFD No. 2004 -2 (including the Special Tax for Facilities and the Special Tax for Services) pursuant to the Act to fund the Special Tax Requirement. "Special Tax for Facilities" means any of the special taxes authorized to be levied by CFD No. 2004 -2 pursuant to the Act to fund the Special Tax Requirement for Facilities. "Special Tax for Services" means any of the special taxes authorized to be levied by CFD No. 2004 -2 pursuant to the Act to fund the Special Tax Requirement for Services. "Special Tax Requirement for Facilities" means the amount required in any Fiscal Year for CFD No. 2004 -2 to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account, and (iv) any amount required to establish or replenish any reserve funds established in association with the Bonds, (v) the collection of funds in any Fiscal Year for the payment of City Police Services authorized by CFD No. 2004 -2 provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on Final Map Property or Undeveloped Property, less (vi) any amount O�DO:123 City of Moorpark September 8, 2004 Community Facilities District No. 2004 -2 Page 4 available to pay debt service or other periodic costs on the Bonds pursuant to any applicable bond indenture, fiscal agent agreement, or trust agreement. "Special Tax Requirement for Services" means the amount determined in any Fiscal Year for CFD 2004 -2 equal to (i) the budgeted costs of the City Police Services during the current Fiscal Year, (ii) Administrative Expenses, and (iii) anticipated delinquent Special Taxes for Services based on the delinquency rate in CFD 2004 -2 for the previous Fiscal Year. "Taxable Property" means all Assessors' Parcels within CFD No. 2004 -2 that are not Exempt Property. "Undeveloped Property" means all Assessors' Parcels of CFD No. 2004 -2 of Taxable Property which are not Developed Property or Final Map Property. SECTION B CLASSIFICATION OF ASSESSOR'S PARCELS Each Fiscal Year, beginning with Fiscal Year 2005 -2006, each Assessor's Parcel within CFD No. 2004 -2 shall be classified as Taxable Property or Exempt Property. In addition, each Fiscal Year, beginning with Fiscal Year 2005 -2006, each Assessor's Parcel of Taxable Property shall be further classified as Developed Property, Final Map Property, or Undeveloped Property. Lastly, each Fiscal Year, beginning with Fiscal Year 2005 -2006, each Assessor's Parcel of Developed Property shall further be classified as Residential Property or Non Residential Property. SECTION C MAXIMUM SPECIAL TAXES 1. Developed Propert a. The Maximum Special Tax for each Assessor's Parcel of Residential Property that is classified as Developed Property in any Fiscal Year shall be the amount determined by the greater of (i) the application of the Assigned Special Tax for Facilities or (ii) the application of the Backup Special Tax for Facilities. b. The Maximum Special Tax for each Assessor's Parcel of Non - Residential Property that is classified as Developed Property in any Fiscal Year shall be the Assigned Annual Special Tax for Facilities. +"00124 City of Moorpark September 8, 2004 Community Facilities District No. 2004 -2 Page 5 2. 3 04 c. The Maximum Special Tax for Services for each Assessor's Parcel of Residential Property that is classified as Developed Property in Fiscal Year 2004 -2005 shall be $350 per Lot. The Maximum Special Tax for Services for each Assessor's Parcel of Non - Residential Property that is classified as Developed Property in any Fiscal Year shall be $1,500 per Acre. On each July 1, commencing July 1, 2005, the Maximum Special Tax for Services for the prior Fiscal Year shall be adjusted by an amount equal to the greater of (i) two percent (2.00%), or (ii) the percentage change in the Consumer Price Index for the Calendar Year ending in December of the prior Fiscal Year. Final Map Property The Maximum Special Tax for Facilities for each Assessor's Parcel classified as Final Map Property shall be the Assigned Special Tax for Facilities. Undeveloped Property The Maximum Special Tax for each Assessor's Parcel classified as Undeveloped Property shall be the Assigned Special Tax for Facilities. SECTION D ASSIGNED SPECIAL TAX Developed Property Each Fiscal Year, each Assessor's Parcel of Developed Property shall be subject to an Assigned Special Tax. The Assigned Special Tax for Facilities applicable to an Assessor's Parcel of Developed Property for any Fiscal Year shall be determined pursuant to Table 1. City of Moorpark September S, 2004 Community Facilities District No. 2004 -2 Page 6 2. TABLE 1 DEVELOPED PROPERTY aceTr_NFr) AWMMT. SPF.(_TAL TAX RATES FOR FACILITIES On each July 1, commencing on July 1, 2005, the Assigned Special Tax for each Assessor's Parcel of Developed Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. Final Map Property and Undeveloped Property Each Fiscal Year, each Assessor's Parcel of Final Map Property and Undeveloped Property shall be subject to an Assigned Special Tax. The Assigned Special Tax rate for an Assessor's Parcel classified as Final Map Property and Undeveloped Property for Fiscal Year 2004 -2005 shall be $37,264 per Acre. On each July 1, commencing on July 1, 2005, the Assigned Special Tax for each Assessor's Parcel of Final Map Property and Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. SECTION E BACKUP SPECIAL TAXES FOR FACILITIES Each Fiscal Year, each Assessor's Parcel of Developed Property classified as Residential Property shall be subject to a Backup Special Tax for Facilities. In each Fiscal Year, the Backup Special Tax for Facilities rate for Developed Property classified as Residential Property within a Final Map shall be the rate per Lot calculated according to the following formula: R x A B- ------------------- L 000126 City of Moorpark September 8, 2004 Community Facilities District No. 2004 -2 Page 7 Assigned Annual Special Tax for Building Square Fiscal Year 2004 - Land Use Type Footage 2005 1. Residential Property Less than 3,400 $6,311 per Unit 2. Residential Property 3,401 - 3,900 $7,148 per Unit 3. Residential Property 3,901 - 4,400 $8,079 per Unit 4. Residential Property Greater than 4,400 $8,832 per Unit 5. Non Residential NSA $37,264 per Property I I Acre On each July 1, commencing on July 1, 2005, the Assigned Special Tax for each Assessor's Parcel of Developed Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. Final Map Property and Undeveloped Property Each Fiscal Year, each Assessor's Parcel of Final Map Property and Undeveloped Property shall be subject to an Assigned Special Tax. The Assigned Special Tax rate for an Assessor's Parcel classified as Final Map Property and Undeveloped Property for Fiscal Year 2004 -2005 shall be $37,264 per Acre. On each July 1, commencing on July 1, 2005, the Assigned Special Tax for each Assessor's Parcel of Final Map Property and Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. SECTION E BACKUP SPECIAL TAXES FOR FACILITIES Each Fiscal Year, each Assessor's Parcel of Developed Property classified as Residential Property shall be subject to a Backup Special Tax for Facilities. In each Fiscal Year, the Backup Special Tax for Facilities rate for Developed Property classified as Residential Property within a Final Map shall be the rate per Lot calculated according to the following formula: R x A B- ------------------- L 000126 City of Moorpark September 8, 2004 Community Facilities District No. 2004 -2 Page 7 The terms above have the following meanings: B = Backup Special Tax for Facilities per Lot in each Fiscal Year. R = Maximum Special Tax for Facilities rate per Acre for Undeveloped Property for the applicable Fiscal Year. A = Acreage of Developed Property classified or to be classified as Residential Property in such Final Map. L = Lots in the Final Map which are classified or to be classified as Residential Property. Each July 1, commencing on July 1, 2005, the Backup Special Tax for Facilities for each Assessor's Parcel shall be increased by two percent (2.00o) of the amount in effect in the prior Fiscal Year. Notwithstanding the foregoing, if all or any portion of the Final Map(s) described in the preceding paragraph is subsequently changed or modified, then the Backup Special Tax for each Assessor's Parcel of Developed Property classified or to be classified as Residential Property in such Final Map area that is changed or modified shall be a rate per square foot of Acreage calculated as follows: 1. Determine the total Backup anticipated to apply to the area prior to the change or Special Tax for Facilities changed or modified Final Map modification. 2. The result of paragraph 1 above shall be divided by the Acreage of Developed Property classified or to be classified as Residential Property which is ultimately expected to exist in such changed or modified Final Map area, as reasonably determined by the City. 3. The result of paragraph 2 above shall be divided by 43,560. The result is the Backup Special Tax for Facilities per square foot of Acreage which shall be applicable to Assessor's Parcels of Developed Property classified as Residential Property in such changed or modified Final Map area for all remaining Fiscal Years in which the Special Tax for Facilities may be levied. SECTION F METHOD OF APPORTIONMENT OF THE SPECIAL TAX FOR FACILITIES AND THE SPECIAL TAX FOR SERVICES 1. Commencing Fiscal Year 2005 -2006 and for each subsequent Fiscal Year, the•City Council shall levy a Special Tax on all Taxable Property within CFD No. 2004 -2 until the amount of City of Moorpark September 8, 200bool ►A Community Facilities District No. 2004 -2 Page 8 Special Tax equals the Special Tax Requirement in accordance with the following steps: Step One: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 1000 of the applicable Assigned Special Tax for Facilities rates as presented in Table 1 as needed to satisfy the Special Tax Requirement. Step Two: If additional moneys are needed to satisfy the Special Tax Requirement for Facilities after the first step has been completed, the Special Tax for Facilities shall be levied Proportionately on each Assessor's Parcel of Final Map Property at up to 1000 of the Assigned Special Tax for Facilities applicable to each such Assessor's Parcel as needed to satisfy the Special Tax Requirement for Facilities. Step Three: If additional moneys are needed to satisfy the Special Tax Requirement for Facilities after the first two steps have been completed, the Special Tax for Facilities shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property, excluding any Undeveloped Property pursuant to Section J, at up to 1000 of the Assigned Special Tax for Facilities applicable to each such Assessor's Parcel as needed to satisfy the Special Tax Requirement for Facilities. Step Four: If additional moneys are needed to satisfy the Special Tax Requirement for Facilities after the first three steps have been completed, then for each Assessor's Parcel of Developed Property whose Maximum Special Tax for Facilities is the Backup Special Tax for Facilities shall be increased Proportionately from the Assigned Special Tax for Facilities up to 1000 of the Backup Special Tax for Facilities as needed to satisfy the Special Tax Requirement for Facilities. Step Five: If additional moneys are needed to satisfy the Special Tax Requirement for Facilities after the first four steps have been completed, the Special Tax for Facilities shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property classified as Undeveloped Property pursuant to Section J at up to 1000 of the Assigned Special Tax for Facilities``rr�� e00128 City of Moorpark September S, 2004 Community Facilities District No. 2004 -2 Page 9 applicable to each such Assessor's Parcel as needed to satisfy the Special Tax Requirement for Facilities. Notwithstanding the above, under no circumstances will the Special Taxes for Facilities levied against any Assessor's Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent (100) per Fiscal Year as a consequence of delinquency or default by the owner of any other Assessor's Parcel within CFD No. 2004 -2. 2. Commencing Fiscal Year 2005 -2006 and for each subsequent Fiscal Year, the City Council shall levy a Special Tax for Services on all Taxable Property within CFD No. 2004 -2 until the amount of Special Tax for Services equals the Special Tax Requirement for Services as follows: The Maximum Special Tax for Services shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 1000 of the applicable Maximum Special Tax for Services as needed to satisfy the Special Tax Requirement for Services. Notwithstanding the above, under no circumstances will the Special Taxes for Services levied against any Assessor's Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent (100) per Fiscal Year as a consequence of delinquency or default by the owner of any other Assessor's Parcel within CFD No. 2004 -2. SECTION G PREPAYMENT OF SPECIAL TAX FOR FACILITIES The following definitions apply to this Section G: "CFD Public Facilities" means $11,720,000 expressed in 2004 dollars, which shall increase by the Construction Inflation Index on January 1, 2005, and on each January 1 thereafter, or such lower number as (i) shall be determined by the City as sufficient to provide the public facilities under the authorized bonding program for CFD No. 2004 -2, or (ii) shall be determined by the City 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. "Construction Fund" means an account specifically identified in the Indenture or functionally equivalent to hold funds which are currently available for expenditure to acquire or construct public facilities eligible under CFD No. 2004 -2. City of Moorpark September 8, 2004 Community Facilities District No. 2004 -2 Page 100()0: 29 "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 City 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 public facility costs available to be funded through existing construction or escrow accounts or funded by the Outstanding Bonds, and minus public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment. "Outstanding Bonds" means all previously issued bonds issued and secured by the levy of Special Tax which will remain outstanding after the first interest and /or principal payment date following the current Fiscal Year, excluding bonds to be redeemed at a later date with the proceeds of prior prepayments of the Maximum Special Tax. The Special Tax for Facilities obligation of an Assessor's Parcel of Developed Property, an Assessor's Parcel of Final Map Property or Undeveloped Property for which a Building Permit has been issued or an Assessor's Parcel of Undeveloped Property that is classified as Undeveloped Property pursuant to Section J. may be prepaid in full, provided that there are no delinquent Special Taxes, penalties, or interest charges outstanding with respect to such Assessor's Parcel at the time the Special Tax obligation would be prepaid. The Prepayment Amount for an Assessor's Parcel eligible for prepayment shall be determined as described below. An owner of an Assessor's Parcel intending to prepay the Special Tax for Facilities obligation shall provide the City with written notice of intent to prepay, and within 5 days of receipt of such notice, the City shall notify such owner of the amount of the non- refundable deposit determined to cover the cost to be incurred by CFD No. 2004 -2 in calculating the proper amount of a prepayment. Within 15 days of receipt of such non - refundable deposit, the City shall notify such owner of the prepayment amount of such Assessor's Parcel. The Prepayment Amount for each applicable Assessor's Parcel shall be calculated according to the following formula (capitalized terms defined below): 000130 City of Moorpark September 8, 2004 Community Facilities District No. 2004 -2 Page 11 Bond Redemption Amount plus Redemption Premium plus Future Facilities Amount plus Defeasance plus Administrative Fee less Reserve Fund Credit equals Prepayment Amount As of the date of prepayment, the Prepayment Amount shall be calculated as follows: 1. For Assessor's Parcels of Developed Property, compute the Assigned Special Taxes and the Backup Special Taxes applicable to the Assessor's Parcel. For Assessor's Parcels of Final Map Property or Undeveloped Property, excluding any Undeveloped Property pursuant to Section J., compute the Assigned Special Tax and the Backup Special Tax applicable to the Assessor's Parcel as though it was already designated as Developed Property based upon the Building Permit issued or to be issued for that Assessor's Parcel. For Assessor's Parcels classified as Undeveloped Property pursuant to Section J., compute the Assigned Special Tax. 2. For each Assessor's Parcel of Developed Property, Final Map Property or Undeveloped Property to be prepaid, (a) divide the Assigned Special Tax computed pursuant to paragraph 1 for such Assessor's Parcel by the sum of the estimated Assigned Special Tax applicable to all Assessor's Parcels of Taxable Property at buildout, as reasonably determined by the City, and (b) divide the Backup Special Tax computed pursuant to paragraph 1 for such Assessor's Parcel by the sum of the estimated Backup Special Tax applicable to all Assessor's Parcels of Taxable Property at buildout, as reasonably determined by the City. 3. Multiply the larger quotient computed pursuant to paragraph 2(a) or 2(b) by Outstanding Bonds. The product shall be the "Bond Redemption Amount ". 4. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed with the proceeds of the Bond Redemption Amount. This product is the "Redemption Premium." 5. Compute the Future Facilities Cost. (11001 1. City of Moorpark September S, 2004 Community Facilities District No. 2004 -2 Page 12 6. Multiply the larger quotient computed pursuant to paragraph 2 (a) or 2 (b) by the amount determined pursuant to paragraph 5. to determine the Future Facilities Cost to be prepaid (the "Future Facilities Amount "). 7. Compute the amount needed to pay interest on the Bond Redemption Amount, the Redemption Premium, and the Reserve Fund Credit (see step 11) to be redeemed with the proceeds of the Prepayment Amount until the earliest call date for the Outstanding Bonds. 8. Estimate the amount of interest earnings to be derived from the reinvestment of the Bond Redemption Amount plus the Redemption Premium until the earliest call date for the Outstanding Bonds. 9. Subtract the amount computed pursuant to paragraph 8 from the amount computed pursuant to paragraph 7. This difference is the " Defeasance." 10. Estimate the administrative fees and expenses associated with the prepayment, including the costs of computation of the Prepayment Amount, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption. This amount is the "Administrative Fee." 11. Calculate the "Reserve Fund Credit" as the lesser of: (a) the expected reduction in the applicable reserve requirements, if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirements in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the applicable reserve funds on the prepayment date. Notwithstanding the foregoing, if the reserve fund requirement is satisfied by a surety bond or other instrument at the time of the prepayment, then no Reserve Fund Credit shall be given. Notwithstanding the foregoing, the Reserve Fund Credit shall in no event be less than $0. 12. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance, and the Administrative Fee, less the Reserve Fund Credit. t1,00132 City of Moorpark September 8, 2004 Community Facilities District No. 2004 -2 Page 13 With respect to the Special Tax for Facilities obligation that is prepaid pursuant to this Section G, the City Council shall indicate in the records of CFD No. 2004 -2 that there has been a prepayment of the Special Tax for Facilities obligation and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30) days of receipt of such prepayment to indicate the prepayment of the Special Tax for Facilities obligation and the release of the Special Tax for Facilities lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay such Special Taxes for Facilities shall cease. Notwithstanding the foregoing, no prepayment will be allowed unless the amount of Special Tax for Facilities that may be levied on Taxable Property, net of Administrative Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments on all currently Outstanding Bonds in each future Fiscal Year. SECTION H PARTIAL PREPAYMENT OF SPECIAL TAX FOR FACILITIES The Special Tax for Facilities obligation of an Assessor's Parcel of Developed Property or an Assessor's Parcel of Undeveloped Property for which a building permit has been issued and will be classified as Developed Property in the next Fiscal Year, as calculated in this Section H. below, may be partially prepaid, provided that there are no delinquent Special Taxes, penalties, or interest charges outstanding with respect to such Assessor's Parcel at the time the Special Tax for Facilities obligation would be prepaid. The Partial Prepayment Amount shall be calculated according to the following formula: PP = PG x F The terms above have the following meanings: PP = the Partial Prepayment Amount. PG = the Prepayment Amount calculated according to Section G. F = the percent by which the owner of the Assessor's Parcel is partially prepaying the Special Tax for Facilities obligation. With respect to any Assessor's Parcel that is partially prepaid, the City Council shall indicate in the records of CFD No. 2004 -2 that there has been a partial prepayment of the Special Tax for Facilities obligation and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30) days of City of Moorpark September S, 2004' 10013 3 Community Facilities District No. 2004 -2 Page 14 receipt of such partial prepayment of the Special Tax for Facilities obligation, to indicate the partial prepayment of the Special Tax for Facilities obligation and the partial release of the Special Tax for Facilities lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay such prepaid portion of the Special Tax for Facilities for shall cease. Notwithstanding the foregoing, no partial prepayment will be allowed unless the amount of Special Tax for Facilities that may be levied on Taxable Property after such partial prepayment, net of Administrative Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments on all currently Outstanding Bonds in each future Fiscal Year. SECTION I TERMINATION OF SPECIAL TAX For each Fiscal Year that any Bonds are outstanding the Special Tax for Facilities shall be levied on all Assessors' Parcels subject to the Special Tax. If any delinquent Special Tax for Facilities remain uncollected prior to or after all Bonds are retired, the Special Tax for Facilities may be levied to the extent necessary to reimburse CFD No. 2004 -2 for uncollected Special Tax for Facilities associated with the levy of such Special Taxes for Facilities, but not later than the 2044 -45 Fiscal Year. The Special Tax for Services shall be levied for as long as the Special Tax for Services is needed to meet the Special Tax Requirement for Services as determined at the sole discretion of the City Council. SECTION J EXEMPTIONS The City shall classify as Exempt Property (i) Assessor's Parcels owned by the State of California, Federal or other local governments, (ii) Assessor's Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor's Parcels used exclusively by a homeowners' association, or (iv) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, provided that no such classification would reduce the sum of all Taxable Property to less than 23.61 Acres. Notwithstanding the above, the City Council shall not classify an Assessor's Parcel as Exempt Property if such classification would reduce the sum of all Taxable Property to less than 23.61 Acres. Assessor's Parcels which cannot be classified as Exempt Property because such classification 0001-34 City of Moorpark September 8, 2004 Community Facilities District No. 2004 -2 Page 15 would reduce the Acreage of all Taxable Property to less than 23.61 Acres will continue to be classified as Undeveloped Property, and will continue to be subject to Special Taxes accordingly. SECTION K APPEALS Any property owner claiming that the amount or application of the Special Tax is not correct may file a written notice of appeal with the City Council not later than twelve months after having paid the first installment of the Special Tax that is disputed. A representative (s) of CFD No. 2004 -2 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the representative's decision requires that the Special Tax for an Assessor's Parcel be modified or changed in favor of the property owner, a cash refund shall not be made (except for the last year of levy), but an adjustment shall be made to the Special Tax on that Assessor's Parcel in the subsequent Fiscal Year(s). SECTION L MANNER OF COLLECTION The Annual Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2004 -2 may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations. 000135 City of Moorpark September 8, 2004 Community Facilities District No. 2004 -2 Page 16 m X m J uu� �i /W4 �l J PROPOSED BOUNDARY MAP OF THE CITY OF MOORPARK COMMUNITY FACILITIES DISTRICT NO. 2001 -2 (MOORPARK VISTAS) COUNTY OF' VENTURA, STATE OF CALIFORNIA �I<) CASF f I) 7,J 07� EVF:'RETT STRAIT cn %l t 0 11 FILED 7N THE OFFICE OF THE CITY CLERK OF THE CITY OF MOORPARK THIS -. __ DAY OF 2004 -- -------- -------- - CITY CLERK I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING BOUNDARIES OF THE CITY OF MOORPARK COMMUNITY FACILITIES DISTRICT NO 2004- 7.(MOORPARK VISTAS), COUNTY OF VENTURA, STATE OF CALIFORNIA, WAS APPROVED BY THE CITY COUNCIL OF THE CITY OF MOORPARK AT A REGULARLY SCHEDULED MEETING THEREOF, HELD ON THE - - DAY OF _ .. 2004 BY ITS RESOLUTION NOS. CITY CLERK 7'HE BOUNDARIES OF THE DISTRICT INCLUDE ASSES'OR PARCEL NUMBERS: 512 0_010._01. .02, -.05, & -06 572 -0- 020 -01, & -03 512 -0 030 -01, & .02 512 -0- 040 -03, -04, -07, -N. & -24 512 -0 -- 050 -14, & -35. PORTION X.L. WICKS TR N0.2. M.R. BKS, FG.37 PORTION M L. WICKS TR. N0.1, M R BE 5, PC 37 RANCHO SIMI, M R BK3, PC 7 FILED THIS - -__ DAY OF ___-_.___. 2004. AT THE HOUR OF -_ O'CLOCK -._M IN BOOK -__ OF MAPS OF ASSESSMENT AND COMMUNITY FACILITIES DISTRICTS AT PACE _. AND AS INSTRUMENT NO. __._________. TN THE OFFICE OF THE COUNTY RECORDER. IN THE COUNTY OF VENTURA, STATE OF CALIFORNIA COUNTY RECORDER, COUNTY OF VENTURA PACE 1 OF 1 N .NT S — 3J%-0• , co 0-10 -0_' ,, 1 1 �\1 0 ?41 I 0 I (1j U -� v tp 7 � 10 tip 4� �I<) CASF f I) 7,J 07� EVF:'RETT STRAIT cn %l t 0 11 FILED 7N THE OFFICE OF THE CITY CLERK OF THE CITY OF MOORPARK THIS -. __ DAY OF 2004 -- -------- -------- - CITY CLERK I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING BOUNDARIES OF THE CITY OF MOORPARK COMMUNITY FACILITIES DISTRICT NO 2004- 7.(MOORPARK VISTAS), COUNTY OF VENTURA, STATE OF CALIFORNIA, WAS APPROVED BY THE CITY COUNCIL OF THE CITY OF MOORPARK AT A REGULARLY SCHEDULED MEETING THEREOF, HELD ON THE - - DAY OF _ .. 2004 BY ITS RESOLUTION NOS. CITY CLERK 7'HE BOUNDARIES OF THE DISTRICT INCLUDE ASSES'OR PARCEL NUMBERS: 512 0_010._01. .02, -.05, & -06 572 -0- 020 -01, & -03 512 -0 030 -01, & .02 512 -0- 040 -03, -04, -07, -N. & -24 512 -0 -- 050 -14, & -35. PORTION X.L. WICKS TR N0.2. M.R. BKS, FG.37 PORTION M L. WICKS TR. N0.1, M R BE 5, PC 37 RANCHO SIMI, M R BK3, PC 7 FILED THIS - -__ DAY OF ___-_.___. 2004. AT THE HOUR OF -_ O'CLOCK -._M IN BOOK -__ OF MAPS OF ASSESSMENT AND COMMUNITY FACILITIES DISTRICTS AT PACE _. AND AS INSTRUMENT NO. __._________. TN THE OFFICE OF THE COUNTY RECORDER. IN THE COUNTY OF VENTURA, STATE OF CALIFORNIA COUNTY RECORDER, COUNTY OF VENTURA PACE 1 OF 1 N .NT S ATTACHMENT RESOLUTION NO. 2004- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, DECLARING ITS INTENTION TO INCUR A BONDED INDEBTEDNESS TO FINANCE THE ACQUISITION AND CONSTRUCTION OF CERTAIN PUBLIC FACILITIES AND THE PAYMENT OF CERTAIN FEES IN AND FOR THE CITY OF MOORPARK COMMUNITY FACILITIES DISTRICT NO. 2004 -2 ( MOORPARK VISTA) WHEREAS, The Council has this date adopted its Resolution of Intention to Establish a Community Facilities District, stating its intention to form the City of Moorpark Community Facilities District No. 2004 -2 (Moorpark Vista) (the "CFD ") pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, Chapter 2.5 of Part 1 of Division 2 of Title 5 of the California Government Code (the "Act "), for the purpose of financing certain public improvements (the "Facilities ") and services, as further provided in that Resolution; and WHEREAS, This Council estimates the amount required for the financing of the costs of the Facilities to be the sum of not to exceed $40,000,000; and WHEREAS, In order to finance the costs of the Facilities it is necessary to incur bonded indebtedness in the amount of not to exceed $40,000,000 on behalf of the CFD; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Bonded Debt. It is necessary to incur bonded indebtedness within the boundaries of the proposed CFD in the amount of up to $40,000,000 to finance the costs of the Facilities. SECTION 2. Purposes of Bonded Debt. The bonded indebtedness is proposed to be incurred for the purpose of financing the costs of the Facilities, including acquisition and improvement costs and all costs incidental to or connected with the accomplishment of said purposes and of the financing thereof, as permitted by Section 53345.3 of the Act. SECTION 3. Terms of Bonds. This Council, acting as legislative body for the CFD intends to authorize the issuance 000131 Resolution No. 2004 - Page 2 and sale of bonds in the maximum aggregate principal amount of not to exceed $40,000,000, bearing interest payable semi- annually or in such other manner as this Council shall determine, at a rate not to exceed the maximum rate of interest as may be authorized by applicable law at the time of sale of such bonds, and maturing not to exceed 31 years from the date of the issuance of said bonds. SECTION 4. Public Hearing. September 15, 2004, at 7:00 p.m., or as soon as possible thereafter, in the City Council Chambers, Moorpark Community Center, 799 Moorpark Avenue, Moorpark, California 93021, be, and the same are hereby appointed and fixed as the time and place when and where this Council, as legislative body for the District, will conduct a public hearing on the proposed debt issue and consider and finally determine whether the public interest, convenience and necessity require the issuance of bonds of the of the City on behalf of the CFD. SECTION 5. Notice of Hearing. The City Clerk is hereby directed to cause notice of said public hearing to be given by publication one time in a newspaper of general circulation circulated within the CFD. The publication of said notice shall be completed at least seven (7) days before the date herein set for said public hearing. The notice shall be substantially in the form specified in Section 53346 of the Act, with the form summarizing the provisions hereof hereby specifically approved. SECTION 5. Certification. The City Clerk shall certify to the adoption of this resolution and cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 15th day of September, 2004. Patrick Hunter, Mayor ATTEST: Deborah S. Traffenstedt, City Clerk 2 000138