HomeMy WebLinkAboutAGENDA REPORT 2010 0616 CC REG ITEM 09D ITEM 9.13.
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MOORPARK CITY COUNCIL ACTION: dAAW IL
AGENDA REPORT olQ - A 9 AA-
TO: Honorable City Council ---- '-�b�-'
FROM: Hugh R. Riley, Assistant City Manaer �- '-
DATE: June 7, 2010 (CC Meeting of June 16, 2010)
SUBJECT: Consider a Resolution of the City Council of The City of Moorpark of
Intention to Annex Territory to Community Facilities District No 2004-
1 (Moorpark Highlands) and to Consider Amendment of the Special
Tax Formula and to Authorize the Levy of Special Taxes in the
Annexed Area
DISCUSSION
The City has previously formed the City of Moorpark Community Facilities District No.
2004-1 (Moorpark Highlands) (the "CFD") and in 2006 issued bonds for the CFD, a
portion of the proceeds of which were intended to be used to reimburse Pardee for
infrastructure improvements, capital improvement fees, and the acquisition of a 22-acre
school site for the Moorpark Unified School District.
In October of 2008, the Moorpark Unified School District (MUSD) made a decision to
not proceed with the construction of the school site and made a request to terminate the
agreement with Pardee Homes. Pardee Homes and the MUSD have been in a dispute
over MUSD's ability to terminate the Purchase and Sale Agreement with regards to the
purchase of the school site. On April 1, 2009, the City of Moorpark and Pardee Homes
executed the Memorandum of Understanding (MOU) to process a proposed residential
project on the school site. The proposed residential neighborhood would consist of a
maximum of 225 additional units (approximately 70 detached homes and 142 attached
homes), but no less than 160 units. However, after evaluating the financial aspects of
the project, Pardee decided that the project would not be feasible for more than 133
detached units.
Pardee has agreed that as part of its entitlements for development of the former 22-acre
school site that it will consent to annexation of the property into the CFD. The addition
of the 133 new homes to the District in Zone 3 will result in an overall decrease in
Special Taxes for each property owner of approximately 16%. Of the 133 new homes, 7
will be exempt from the Special Taxes so they will remain affordable. As part of the
agreement, Pardee has also agreed to limit its use of the bond proceeds to a total of
$27 million of the originally available $34 million.
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Honorable Mayor and City Council
June 16, 2010
Page 2
Based on the recent MOU between the City and Pardee and considering previous
reimbursements to date, Pardee is eligible to be reimbursed up to approximately an
additional $6,000,000 for improvements constructed, provided the terms in the MOU are
implemented through approval of the proposed residential project on the school site.
In addition, in the MOU both parties agree that the remaining Improvement Fund money
(net of fees and penalties) will be applied to redeem approximately $8.395 million of
bonds. This will result in a decrease in the Special Taxes for each property owner
within the District, currently estimated to be approximately a 21% decrease to the
property owners, for a total decrease in Special Taxes of approximately 37%.
In connection with the annexation, the Council needs to additionally approve an
amendment to the Rate and Method of Apportionment of Special Tax for the CFD
(which is the document that sets the special tax rate for each property). The
amendment establishes the special tax rates of the property to be annexed. Pardee
has submitted a Petition to the City asking for the annexation and amendment to
proceed.
The legal process for the annexation/amendment of the CFD calls for actions over two
Council meetings. The first occurs tonight and is the adoption of the attached
resolution, which expresses the intent of the Council to move forward with the
annexation/amendment and sets July 7, 2010 as the public hearing date on the
annexation and amendment. The action tonight effectively introduces the concept; the
actual annexation and amendment will occur at the July 7th meeting, providing Pardee
delivers its ballot on or prior to that date voting in favor of the annexation and
amendment.
RECOMMENDATION
Adopt Resolution No. 2010-
ATTACHMENTS:
1. Resolution 2010-
2. CFD 2004-1 Fact Sheet
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RESOLUTION NO. 2010 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, OF INTENTION TO ANNEX
TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 2004-1
(MOORPARK HIGHLANDS) AND TO CONSIDER AMENDMENT
OF THE SPECIAL TAX FORMULA AND TO AUTHORIZE THE
LEVY OF SPECIAL TAXES IN THE ANNEXED AREA
WHEREAS, the City Council has conducted proceedings under and pursuant to
the Mello-Roos Community Facilities Act of 1982, as amended, Chapter 2.5 of Part 1 of
Division 2 of Title 5, commencing at Section 53311, of the California Government Code
(the "Act"), to form the City of Moorpark Community Facilities District No. 2004-1
(Moorpark Highlands) (the "CFD"), to authorize the levy of special taxes upon the land
within the CFD for the purpose of providing moneys for the construction and acquisition
of improvements and to finance certain services of benefit to property within the CFD,
and to issue bonds secured by said special taxes for the purpose of providing for
financing the construction and acquisition of such improvements; and
WHEREAS, under the Act, this Council, as the legislative body for the CFD, is
empowered with the authority to annex territory to the CFD and to amend the Rate and
Method of Apportionment for the CFD, and the City on behalf of the CFD now desires to
undertake proceedings to annex territory to the CFD and set forth the special taxes
proposed for the annexed area by amending the Rate and Method of Apportionment for
the CFD; and
WHEREAS, there is on file with the City a written petition (the "Petition")
executed by the sole owner of all the territory proposed to be annexed, seeking such
annexation and amendment and submitting waivers to expedite the process of
annexation and amendment.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. This Council hereby finds and determines that public convenience
and necessity require that territory be added to the CFD and that the Rate and Method
of Apportionment for the CFD be amended to specify the special taxes proposed for the
annexed area.
SECTION 2. The name of the CFD is "Community Facilities District No. 2004-1
(Moorpark Highlands)", which CFD has been duly formed by the City pursuant to the
Act.
SECTION 3. This Council hereby finds and determines that public convenience
and necessity require that the boundary of the CFD be changed to include the property
proposed to be annexed to the CFD as described herein, to meet the City's needs for
29
the sharing of the cost of the improvements financed by the CFD and the providing of
authorized services of the CFD to the annexed property. The territory included in the
existing CFD is as shown on the map thereof recorded on October 5, 2004 in the
Ventura County Recorder's Office as Document No. 20041005-0269524 and in Book
19, at Page 4. The territory now proposed to be annexed to the CFD is as shown on
the Annexation Map No. 1 to the CFD, on file with the Clerk, the boundaries of which
annexation territory are hereby preliminarily approved and to which map reference is
hereby made for further particulars. The City Clerk is hereby directed to cause to be
recorded said Annexation Map No. 1 to the CFD, showing the territory to be annexed, in
the office of the County Recorder of the County of Ventura within fifteen days of the
date of adoption of this resolution.
SECTION 4. The types of public facilities and services financed by the CFD and
pursuant to the Act consist of those facilities (the "Facilities") and services (the
"Services") described in the Exhibit to Resolution No. 2005-2383, adopted by the
Council on September 21, 2005 (the "Resolution of Formation"). It is presently intended
that the Facilities and Services will be shared, without preference or priority, by the
existing territory in the CFD and the territory proposed to be annexed to the CFD.
SECTION 5. The existing rate, method of apportionment, and manner of
collection of the authorized special tax (the "Rate and Method of Apportionment of
Special Tax") is as set forth as Exhibit B to the Notice of Special Tax Lien recorded in
the Ventura County Recorder's Office on September 30, 2005 as Document No.
20050930-0244828.
SECTION 6. This Council hereby finds and determines that public convenience
and necessity require that the Rate and Method of Apportionment of Special Tax for the
CFD be amended to establish the special tax rates of the CFD for the property to be
annexed to the CFD, to meet the City's needs for the sharing of the Facilities and the
providing of authorized services of the CFD to the annexed property within the CFD.
SECTION 7. This Council is considering that the changes to the Rate and
Method of Apportionment of Special Tax be adopted as set forth in the proposed First
Amended Rate and Method of Apportionment set forth in the Exhibit attached hereto
and hereby incorporated herein.
SECTION 8. 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 of the CFD issued to finance the Facilities, a special tax sufficient to pay the
costs thereof is intended to be levied annually within the CFD, including any annexed
territory, and collected in the same manner as ordinary ad valorem property taxes. The
proposed First Amended Rate and Method of Apportionment does not result in an
increase in the special tax amount to be levied among the original parcels of real
property within the CFD; following the annexation proposed herein, the First Amended
Rate and Method of Apportionment will facilitate providing a tax rate for the CFD,
including the annexed property.
-2- 30
SECTION 9. Wednesday, July 7, 2010, at 7:00 o'clock p.m., in the regular
meeting place of this Council, Council Chambers, City Hall, 799 Moorpark Ave.,
Moorpark, California, is hereby appointed and fixed as the time and place when and
where this Council, as legislative body for the CFD, will open a public hearing on the
annexation of territory to the CFD to consider and determine whether the public interest,
convenience and necessity require said annexation of territory to the CFD and the levy
of said special tax therein according to the First Amended Rate and Method of
Apportionment.
SECTION 10. Based upon the waivers contained in the Petition, and the owners
of the territory to be annexed being the only parties requesting such annexation and
amendment of the Rate and Method of Apportionment for the CFD, and being
otherwise fully informed of these proceedings for annexation, there shall be no
publication and mailing of written notices of the public hearing.
SECTION 11. This Resolution shall take effect from and after its adoption.
SECTION 12. 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 16th day of June, 2010.
Janice S. Parvin, Mayor
ATTEST:
Deborah S. Traffenstedt, City Clerk
Exhibit: First Amended Rate and Method of Apportionment
-3-
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EXHIBIT
FIRST AMENDED RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
FOR COMMUNITY FACILITIES DISTRICT NO. 2004-1
OF THE CITY OF MOORPARK
(Moorpark Highlands)
This First Amended Rate and Method of Apportionment of Special Tax represents a
complete restatement of the original Rate and Method of Apportionment adopted on
September 7, 2005. The First Amended Rate and Method of Apportionment of Special
Tax was structured to reflect the effects of the annexation of territory into CFD No.
2004-1 through Annexation No. 1, and a bond call scheduled for September 1, 2010 in
an amount equal to $10,320,000.
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 "Annexed Property,"
"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 the land area of an Assessor's Parcel as shown on
an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel
Map, the land area shown on the applicable final map, parcel map, condominium
plan, or other recorded County parcel map. The square footage of an Assessor's
Parcel is equal to the Acreage multiplied by 43,560. The minimum acreage of
Taxable Property for CFD No. 2004-1 is determined in accordance with Section K.
"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.
"Affordable Unit(s) " means, for each Fiscal year, up to a total of 25 dwelling
unit(s) located on an Assessor's Parcel(s) of Residential Property within Zone 2 that
are subject to deed restrictions, resale restrictions, and/or regulatory agreements
recorded in favor of the City providing for very low income housing prior to March 1
of the prior Fiscal Year. In order to insure that a dwelling unit is correctly classified
City of Moorpark June 16, 2010
Community Facilities District No. 2004-1 Page 1 32
as an Affordable Unit, the owner of such property shall provide the CFD
Administrator with a copy of any applicable deed restrictions, resale restrictions,
and/or regulatory agreements. Dwelling units shall be classified as Affordable Units
by the CFD Administrator in the chronological order in which such notification is
received. If the total number of Affordable Units exceeds the amount stated above,
then the units exceeding such total shall not be considered Affordable Units and
shall be assigned to Land Use Classes 1 through 5 within Zone 2 as described in
Section E below based on the Building Square Footage for such units.
"Annexed Developed Property" means an Assessor's Parcel of Annexed
Property for which a Building Permit was issued on or before April 1 of the Fiscal
Year preceding the Fiscal Year for which Special Taxes are being levied, provided
that a Final Map for such Assessor's Parcel was recorded on or before January 1 of
such prior Fiscal Year for which Special Taxes may be levied.
"Annexed Final Map Property" means an Assessor's Parcel of Annexed Property
that is included in a Final Map that was recorded prior to January 1 of the Fiscal
Year preceding the Fiscal Year in which the Special Tax is being levied, and (ii) for
which a Building Permit was not issued prior to April 1 of the Fiscal Year preceding
the Fiscal Year in which the Special Tax is being levied.
"Annexed Property" means an Assessor's Parcel representing territory not
identified within the originally boundaries of CFD No. 2004-1 that have
subsequently been annexed to CFD No. 2004-1, pursuant to Annexation Map No.
1, recorded on , 2010, in Book Page of Maps of Assessments
and Community Facilities Districts in the recorder's office of the County; such
annexed territory shall be designated as Zone 3 property.
"Annexed Undeveloped Property" means an Assessor's Parcel of Annexed
Property that is not classified as Exempt Property, Annexed Developed Property, or
Annexed Final Map Property.
"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.
"Assigned Special Tax for Facilities" means the annual special tax of that name
described in Section E below.
"Backup Special Tax for Facilities" means the Special Tax of that name
described in Section F 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.
City of Moorpark June 16, 2010
Community Facilities District No. 2004-1 Page 2 33
"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 costs of police services for CFD No. 2004-1.
"Condo Unit" means each separate residential condominium unit that comprises
an independent facility capable of conveyance or rental separate from adjacent
residential dwelling units.
"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 of the
Fiscal Year 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 such
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, or Annexed Property designated as being exempt from the
Special Tax as determined in Section K.
"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.
City of Moorpark June 16, 2010
Community Facilities District No. 2004-1 Page 3
34
"Final Map Property" means all Assessor's Parcels within Zones 1, 2, 3, and 4 of
CFD No. 2004-1, exclusive of Annexed Property,: (i) that are included in a Final
Map that was recorded prior to January 1of the Fiscal Year preceding the Fiscal
Year in which the Special Tax is being levied, and (ii) for which a Building Permit
was not issued prior to April 1 of the Fiscal Year 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.
"Initial Special Tax for Facilities" means the annual special tax of that name
described in Section D below.
"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 or Condo Unit created
by a condominium plan 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 of Taxable Property.
"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 Assessors' 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 of Developed Property.
"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 I.
"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
H.
"Proportionately" means for Developed Property, the ratio of the actual Special
Tax for Facilities levied on Developed Property to the Maximum Special Tax for
Facilities for Developed Property is equal for all Assessor's Parcels of Developed
Property. For Final Map Property, it means that the ratio of the actual Special Tax
for Facilities levied on Final Map Property to the Maximum Special Tax for Facilities
for Final Map Property is equal for all Assessor's Parcels of Final Map Property. For
Annexed Final Map Property, it means that the ratio of the actual Special Tax for
Facilities levied on Annexed Final Map Property to the Maximum Special Tax for
Facilities for Annexed Final Map Property is equal for all Assessor's Parcels of
Annexed Final Map Property. For Undeveloped Property, it means that the ratio of
the actual Special Tax for Facilities levied on Undeveloped Property to the
Maximum Special Tax for Facilities for Undeveloped Property is equal for all
Assessor's Parcels of Undeveloped Property. For Annexed Undeveloped Property,
City of Moorpark June 16, 2010
Community Facilities District No 2004-1 Page 4
35
it means that the ratio of the actual Special Tax for Facilities levied on Annexed
Undeveloped Property to the Maximum Special Tax for Facilities for Annexed
Undeveloped Property is equal for all Assessor's Parcels of Annexed Undeveloped
Property. Regarding the Special Tax for Services for Developed Property,
"Proportionately" means the ratio of the actual Special Tax for Services levied on
Developed Property to the Maximum Special Tax for Services for Developed
Property is equal for all Assessor's Parcels of Developed Property.
"Residential Property" means all Assessors' Parcels of Developed Property or 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 any Fiscal Year to pay directly for the acquisition or
construction of eligible facilities or 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,
Annexed Property, or Final Map Property.
"Unit" means each separate residential unit that comprises an independent facility
capable of conveyance or rental separate from adjacent residential dwelling units.
City of Moorpark June 16, 2010
Community Facilities District No. 2004-1 Page 5
36
"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 original Boundary Map as Zone
3 of CFD No. 2004-1, and territory annexed to CFD No. 2004-1 pursuant to
Annexation Map No. 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 2006-2007, 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 Assessor's Parcel of Taxable
Property shall be further classified as Developed Property, Final Map Property,
Annexed Final Map Property, Undeveloped Property, or Annexed Undeveloped
Property. Lastly, each Assessor's Parcel of Developed Property shall further be
classified as Residential Property or Non Residential Property.
SECTION C
MAXIMUM SPECIAL TAXES FOR ZONES 1, 2, 3, AND 4
1. Developed Property
a. The Maximum Special Tax for Facilities for each Assessor's Parcel of
Residential Property that is classified as Developed Property shall be the
amount determined by the greater of (i) the application of the Initial Special
Tax for Facilities set forth in Section D, (ii) the application of the Assigned
Special Tax for Facilities set forth in Section D or (iii) the application of the
Backup Special Tax for Facilities set forth in Section E.
b. The Maximum Special Tax for Facilities for each Assessor's Parcel of Non-
Residential Property that is classified as Developed Property shall be equal to
the Assigned Special Tax for Facilities set forth in Section D.
c. The Maximum Special Tax for Services for each Assessor's Parcel of
Residential Property in Fiscal Year 2005-2006 shall be $400 per Lot. The
Maximum Special Tax for Services for each Assessor's Parcel of Non-
Residential Property shall be $1,500 per Acre. On each July 1, commencing
July 1, 2006, the Maximum Special Tax for Services for the prior Fiscal Year
shall be adjusted by an amount equal to the greater of (i) three percent
(3.00%), or (ii) the percentage change in the Consumer Price Index for the
Calendar Year ending in December of the prior Fiscal Year, not to exceed
seven percent (7.00%).
City of Moorpark June 16, 2010
Community Facilities District No. 2004-1 Page 6
37
2. Final Map Property and Undeveloped Property
The Maximum Special Tax for Facilities for each Assessor's Parcel classified as
Final Map Property or Undeveloped Property shall be the Assigned Special Tax
for Facilities set forth in Section D.
3. Annexed Final Map Property and Annexed Undeveloped Property
The Maximum Special Tax for Facilities for each Assessor's Parcel classified as
Annexed Final Map Property or Annexed Undeveloped Property shall be equal to
the Assigned Special Tax for Facilities set forth in Section D for Annexed Final
Map Property and Annexed Undeveloped Property.
SECTION D
INITIAL SPECIAL TAX FOR FACILITIES AND
ASSIGNED SPECIAL TAX FOR FACILITIES
FOR ZONES 1, 2, 3, AND 4
1. Developed Property
Each Fiscal Year, each Assessor's Parcel of Developed Property within Zones 1,
2, 3 and 4, shall be subject to an Initial Special Tax for Facilities and an Assigned
Special Tax for Facilities. The Initial Special Tax for Facilities and Assigned
Special Tax for Facilities applicable to an Assessor's Parcel of Developed
Property within CFD No. 2004-1 shall be determined pursuant to Tables 1
through 4 below.
TABLE 1
ZONE 1 - DEVELOPED PROPERTY
INITIAL SPECIAL TAX FOR FACILITIES AND
ASSIGNED SPECIAL TAX FOR FACILITIES
Initial Assigned
Building Square Special Tax Special Tax
Land Use Type Footage for Facilities for Facilities
1. Residential Property Less than 2,151 $2,431 per Unit $3,858 per Unit
2. Residential Property 2,151 — 2,350 $2,548 per Unit $4,044 per Unit
3. Residential Property 2,351 — 2,550 $2,646 per Unit $4,200 per Unit
4. Residential Property 2,551 — 2,750 $2,689 per Unit $4,268 per Unit
5. Residential Property Greater than 2,750 $2,825 per Unit $4,483 per Unit
6. Non Residential Property N/A $25,315 per Acre $40,182 per Acre
City of Moorpark June 16, 2010
Community Facilities District No. 2004-1 Page 7
38
TABLE 2
ZONE 2 - DEVELOPED PROPERTY
INITIAL SPECIAL TAX FOR FACILITIES AND
ASSIGNED SPECIAL TAX FOR FACILITIES
Building Square Initial Special Tax Assigned Special Tax
Land Use T e Footage for Facilities for Facilities
1. Residential Property Less than 1,401 $1,286 per Condo Unit $2,041 per Condo Unit
2. Residential Property 1,401 - 1,600 $1,502 per Condo Unit $2,383 per Condo Unit
3. Residential Property Greater than 1,600 $1,776 per Condo Unit $2,818 per Condo Unit
4. Non Residential N/A $49,789 per Acre $79,030 per Acre
Property
TABLE 3
ZONE 3 - DEVELOPED PROPERTY
INITIAL SPECIAL TAX FOR FACILITIES AND
ASSIGNED SPECIAL TAX FOR FACILITIES
Initial Assigned
Building Square Special Tax Special Tax
Land Use Type Footage for Facilities for Facilities
1. Residential Property Less than 2,351 $2,834 per Unit $4,497 per Unit
2. Residential Property 2,351 -2,600 $2,887 per Unit $4,581 per Unit
3. Residential Property 2,601 - 2,850 $2,939 per Unit $4,665 per Unit
4. Residential Property 2,851 - 3,100 $3,016 per Unit $4,786 per Unit
5. Residential Property 3,101 - 3,350 $3,136 per Unit $4,977 per Unit
6. Residential Property 3,351 - 3,600 $3,501 per Unit $5,556 per Unit
7. Residential Property 3,601 - 3,850 $3,618 per Unit $5,742 per Unit
8. Residential Property 3,851 -4,100 $3,745 per Unit $5,943 per Unit
9. Residential Property 4,101 - 4,350 $3,908 per Unit $6,203 per Unit
10. Residential Property 4,351 - 4,600 $4,026 per Unit $6,390 per Unit
11. Residential Property Greater than 4,600 $4,143 per Unit $6,576 per Unit
12. Non Residential Property N/A $16,072 per Acre $25,511 per Acre
City of Moorpark June 16, 2010
Community Facilities District No. 2004-1 Page 8
39
TABLE 4
ZONE 4 - DEVELOPED PROPERTY
INITIAL SPECIAL TAX FOR FACILITIES AND
ASSIGNED SPECIAL TAX FOR FACILITIES
Initial Assigned
Building Square Special Tax Special Tax
Land Use Type Foota a for Facilities for Facilities
1. Residential Property Less than 3,201 $3,697 per Unit $5,868 per Unit
2. Residential Property 3,201 — 3,750 $3,956 per Unit $6,278 per Unit
3. Residential Property 3,751 — 4,300 $4,073 per Unit $6,464 per Unit
4. Residential Property 4,301 — 4,900 $4,237 per Unit $6,725 per Unit
5. Residential Property Greater than 4,900 $4,472 per Unit $7,097 per Unit
6. Non Residential Property N/A $6,322 per Acre $10,034 per Acre
2. Final Map Property and Undeveloped Property
Each Fiscal Year, each Assessor's Parcel classified as Final Map Property or
Undeveloped Property within CFD No. 2004-1 shall be subject to an Initial
Special Tax for Facilities and an Assigned Special Tax for Facilities. The Initial
Special Tax for Facilities and Assigned Special Tax for Facilities applicable to an
Assessor's Parcel of Final Map Property or Undeveloped Property within CFD
No. 2004-1 shall be determined pursuant to Tables 5 below.
TABLE 5
FINAL MAP PROPERTY AND UNDEVELOPED PROPERTY
INITIAL SPECIAL TAX FOR FACILITIES AND
ASSIGNED SPECIAL TAX FOR FACILITIES
Initial Assigned
Special Tax Special Tax
Zone for Facilities for Facilities
Zone 1 $25,315 per Acre $40,182 per Acre
Zone 2 $49,789 per Acre $79,030 per Acre
Zone 3 $16,072 per Acre $25,511 per Acre
Zone 4 $6,322 per Acre $10,034 per Acre
City of Moorpark June 16, 2010
Community Facilities District No. 2004-1 Page 9
40
3. Annexed Final Map Property and Annexed Undeveloped Property
Each Fiscal Year, each Assessor's Parcel classified as Annexed Final Map
Property or Annexed Undeveloped Property within CFD No. 2004-1 shall be
subject to an Initial Special Tax for Facilities and an Assigned Special Tax for
Facilities. The Initial Special Tax for Facilities and Assigned Special Tax for
Facilities for an Assessor's Parcel classified as Annexed Final Map Property or
Annexed Undeveloped Property shall be $30,209 per Acre and $47,936 per
Acre, respectively.
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 shall be subject to a Backup Special Tax for Facilities. In each
Fiscal Year, the Backup Special Tax for Facilities within each Final Map shall be the
amount per Lot calculated according to the following sections:
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 per Acre for Undeveloped
Property. For Annexed Property, the Maximum Special Tax for
Facilities per Acre for Annexed Undeveloped Property.
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.
Based on the preceding formula, Table 6 identifies the Backup Tax Special Tax for
Facilities for each Final Map within CFD No. 2004-1
City of Moorpark June 16, 2010
Community Facilities District No. 2004-1 Page 10
41
TABLE 6
BACKUP SPECIAL TAX RATES FOR FACILITIES
Final Ma Zone Backup Special Tax
5045-2 Zone 1 $4,922.08 per Lot
5045-6 Zone 2 $2,535.12 per Lot
5045-3 Zone 3 $5,064.93 per Lot
5045-4 Zone 3 $5,245.06 per Lot
5045-5 Zone 3 $5,777.52 per Lot
5045-8 Zone 3 $8,438.40 per Lot
5860 Zone 3 $4,528.33 per Lot
5045-8 Zone 4 $7,694.28 per Lot
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 Facilities for each affected Assessor's Parcel classified or to be classified as
Residential Property in such Final Map area that is changed or modified shall be an
amount 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 total Acreage of the
affected Assessor's Parcels 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 the affected Assessor's Parcels 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.
City of Moorpark June 16, 2010
Community Facilities District No. 2004-1 Page 11
42
SECTION F
METHOD OF APPORTIONMENT OF THE SPECIAL TAX
FOR FACILITIES AND THE SPECIAL TAX FOR SERVICES
1. Commencing Fiscal Year 2006-2007 and for each subsequent Fiscal Year, the
City Council shall levy a Special Tax for Facilities on all Taxable Property within
CFD No. 2004-1 until the total amount of Special Tax for Facilities equals the
Special Tax Requirement for Facilities in accordance with the following steps:
Step One: The Special Tax for Facilities shall be levied Proportionately
on each Assessor's Parcel of Developed Property, Annexed
Final Map Property, and Annexed Undeveloped Property up to
100% of the applicable Initial Special Tax for Facilities 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 up to 100% of the Initial 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 up to 100% of the Initial 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, the Special Tax for Facilities shall be levied
Proportionately on each Assessor's Parcel of Developed
Property up to 100% of the applicable Assigned 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 Annexed Final
Map Property and Final Map Property 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.
City of Moorpark June 16, 2010
Community Facilities District No. 2004-1 Page 12
43
Step Six: If additional moneys are needed to satisfy the Special Tax
Requirement for Facilities after the first five steps have been
completed, the Special Tax for Facilities shall be levied
Proportionately on each Assessor's Parcel of Annexed
Undeveloped Property and Undeveloped Property 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.
Step Seven: If additional moneys are needed to satisfy the Special Tax
Requirement for Facilities after the first six 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 100% of the Backup Special Tax for Facilities 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 2006-2007 and for each subsequent Fiscal Year, the
City Council shall levy a Special Tax for Services on all Developed Property
within CFD No. 2004-1 until the total 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 up to 100% of the applicable
Maximum Special Tax for Services as needed to satisfy the Special Tax
Requirement for Services.
City of Moorpark June 16, 2010
Community Facilities District No. 2004-1 Page 13
44
SECTION G
PREPAYMENT OF SPECIAL TAX FOR FACILITIES
The following definitions apply to this Section G:
"CFD Public Facilities" means $43,750,000 expressed in 2005 dollars, which shall
increase by the Construction Inflation Index on January 1, 2006, 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. 2004-1,
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.
"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,
as well as an Assessor's Parcel of Final Map Property, Annexed Final Map Property,
Undeveloped Property, or Annexed Undeveloped Property for which a Building Permit
has been issued 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. 2004-1 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.
City of Moorpark June 16, 2010
Community Facilities District No. 2004-1 Page 14
45
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 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, Annexed Final Map
Property, Undeveloped Property, or Annexed Undeveloped Property for
which a Building Permit has been issued, 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.
2. For each Assessor's Parcel 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.
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 amount needed to pay interest on the Bond Redemption
Amount, the Redemption Premium, and the Reserve Fund Credit (see
step 9) to be redeemed with the proceeds of the Prepayment Amount until
the earliest call date for the Outstanding Bonds.
6. 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.
7. Subtract the amount computed pursuant to paragraph 6 from the amount
computed pursuant to paragraph 5. This difference is the "Defeasance."
City of Moorpark June 16, 2010
Community Facilities District No 2004-1 Page 15
46
8. 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."
9. 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.
10. The Prepayment Amount is equal to the sum of the Bond Redemption
Amount, the Redemption Premium, 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 1.10 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,
as well as an Assessor's Parcel of Final Map Property, Annexed Final Map Property,
Undeveloped Property, or Annexed 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.
City of Moorpark June 16, 2010
Community Facilities District No. 2004-1 Page 16
47
The Partial Prepayment Amount shall be calculated according to the following formula:
PP = PGxF
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. 2004-1 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 1.10 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 of Taxable Property. 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) 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 (a)
less than 9.86 Acres for Tax Zone 1, (b) less than 2.47 Acres for Tax Zone 2, (c) less
City of Moorpark June 16, 2010
Community Facilities District No 2004-1 Page 17
48
than 79.80 Acres for Tax Zone 3, or (d) less than 24.12 Acres for Tax Zone 4.
Assessor's Parcels which cannot be classified as Exempt Property will continue to be
classified as Undeveloped Property, and will continue to be subject to Special Taxes
accordingly. All Affordable Units shall be exempt from the Special Tax.
Notwithstanding any provision of this First Amended Rate and Method of Apportionment
of Special Tax to the contrary, in any Fiscal Year after Fiscal Year 2010-2011, the
Annexed Property shall be classified as Exempt Property and shall not be subject to the
levy of Special Taxes other than as specified in the following sentence if any of the
Annexed Property Entitlements are not effective due to the filing or prosecution of a
legal challenge, the filing of a referendum petition or as the result of a referendum
election. Such Exempt Property status shall continue until the Annexed Property
receives final, effective entitlements from the City that either conform substantially to the
Annexed Property Entitlements or are for a subsequent development plan submitted by
the owner of the Annexed Property. Upon receiving such entitlements, the levy of the
Special Taxes applicable to the Annexed Property shall resume as specified herein or
as set forth in a subsequent amendment of this First Amended Rate and Method of
Apportionment of Special Tax.
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. 2004-1 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.
City of Moorpark June 16, 2010
Community Facilities District No. 2004-1 Page 18
49
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FACT SHEET
MELLO-ROOS FINANCING:
COMMUNITY FACILITIES DISTRICT NO. 2004-1
(MOORPARK HIGHLANDS) SPECIAL TAX BONDS
SERIES 2006
BACKGROUND:
In 1978 Californians enacted Proposition 13, which limited the ability of local public
agencies to increase property taxes based on a property's assessed value. In 1982, the
Mello-Roos Community Facilities Act of 1982 (Government Code 53311-53368.3) was
created to provide an alternate method of financing needed improvements and services.
HOW IS A MELLO-ROOS CFD FORMED?
A Mello-Roos Community Facilities District (a "CFD") is created by a sponsoring local
government agency, such as the City of Moorpark. A proposed district typically includes
all properties that will benefit from the improvements to be constructed and/or the
services to be provided. If there are fewer than 12 registered voters within the proposed
district at the time of formation, a vote of the landowners (which may be a single owner
or developer) is conducted.
In the case of the Moorpark Highlands project, the Moorpark City Council adopted
Resolution No. 2005-2383 on September 7, 2005 which formed CFD NO. 2004-1 (the
"District"). A public hearing was conducted and the special taxes received a 2/3ftl
landowner (the developer) vote approval. The landowner voted to incur indebtedness
and to approve an annual levy of Special Taxes to be collected within the District, for the
purpose of paying for certain capital facilities, including repaying bonded indebtedness of
the District, replenishing the Reserve Fund, and paying the administrative expenses of
the District. The City Council adopted an Ordinance on October 5, 2005 to authorize the
City to levy Special Taxes within the District.
WHAT FACILITIES WERE FINANCED?
The Facilities eligible to be financed by the District are set forth in the Resolution of
Intention (adopted September 15, 2004) and in the Community Facilities District Hearing
Report dated August 16, 2004 prepared for the City by Willdan Financial (located in
Temecula, CA). A summary of the eligible Facilities are listed on the next page:
ATTACHMENT 2
51
• City of Moorpark Infrastructure, including all Development Impact Fees, Public
Facilities including but not limited to Streets and Minor Bridges, Culverts, Traffic
Signals and Controllers, Storm Drainage and Retention Facilities, Flood Studies,
General Facilities, Vehicles, and Equipment, Open Space Acquisition, Park Land
and Facilities, Community Center, Library Facilities.
• Street Improvements for Spring Road, Elk Run Loop and Ridgecrest Drive
• Wall Improvements (Los Angeles Avenue to High Street)
• Public Park, Recreation or Open Space Facilities
• School Facilities including land
• Landscaping of Public Streets, Right-of-Ways, Storm Drain Facilities, Slopes,
Mitigation Monitoring and Appurtenant Facilities
• Other expenses incidental to the construction, completion, and inspection of the
Facilities
The total estimated construction cost of the Facilities and other project related public
expenditures is approximately $46.5 million. Approximately $34.3 million of the total cost
of the Facilities were financed by the Series 2006 Special Tax Bonds. The remaining
facilities costs were funded by the Developer.
HOW ARE THE ANNUAL SPECIAL TAXES DETERMINED?
By law, the Special Tax cannot be directly based on the value of the property. Special
Taxes instead are based on mathematical formulas that take into account property
characteristics such as use of the property, square footage of the structure, and lot size.
ANNUAL ASSIGNED SPECIAL TAX RATE: The Annual Special Tax Rate for Facilities
for residential units in CFD 2004-1 currently varies depending on the size of the home
and its location within any of the four Special Tax Zones as specified in the Rate and
Method of Apportionment for CFD 2004-1. The Assigned Annual Special Tax for
Facilities ranges from approximately $3,858 per unit for homes less than 2,151 square
feet, to approximately $7,097 per unit for homes greater than 4,900 square feet. The
Assigned Annual Special Tax for Facilities for Condominiums in the District ranges from
$2,041 per unit to $2,818 per unit, depending on square footage of the unit.
ANNUAL MAXIMUM SPECIAL TAX RATE: When Community Facilities Districts are
formed, the revenues from the Special Taxes against the properties (lots) are pledged to
secure bonded indebtedness. In addition to the Assigned Special Tax Rate explained
above, a Maximum Tax is also established. The Maximum Tax Rate would only be
imposed if and to the extent needed to make up deficiencies in the collection of Special
Taxes, due to delinquencies or other factors. The Maximum Tax Rate is calculated so
that sufficient tax revenue can be collected to pay indebtedness and to ensure the
District is self-funding. Public Law requires that this Maximum Special Tax Rate must be
disclosed to the tax payer even though the Maximum Special Tax may never be
imposed.
An additional Special Tax for Services will also be assessed, for budgeted costs related
to City Police Services. The Maximum Special Tax for Services was $400 per lot in
Fiscal Year 2005-06, increasing annually by the greater of (i) 3%, or (ii) the percentage
change in the Consumer Price Index, not to exceed 7% annually.
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WHAT IS THE CURRENT STATUS OF THE MOORPARK
HIGHLANDS DEVELOPMENT?
Due to economic issues generally and within the real estate market there has been a
delay in the completion of the remaining phases of construction within Cherry Hill which
is in the process of completing the remaining construction and sales of its homes.
However, Shenandoah, Magnolia Lane and Waverly Place are considered complete and
"sold out".
Toll Brothers, Inc. has model homes constructed and sales and construction of their
neighborhood, identified as the Pinnacle at Moorpark Highlands, is underway. The
following is a current status of the facilities financed by the District:
Infrastructure&Developmental Impact Complete
Fees _
Street Improvements for Spring Road, Complete
Elk Run Loop and Rid ecrest Drive _
Wall Improvements for Los Angeles Complete
Avenue to High Street
Public Park, Recreation, Open Space Complete
Facilities
Landscaping of Public Streets, Storm
Drains, Slopes and Mitigation Monitoring Complete
and Appurtenant Facilities _
Acquisition of Public School Site Suspended
WHAT IS LEFT OF THE BOND ISSUANCE PROCEEDS?
The following is a summary of the original bond issue and remaining bond proceeds as of 6-04-
2010:
Original Bond Issue
Improvement Fund $34,066,993
Reserve Fund 2,472,615
Bond Fund 270,547
Less Original Issue Discount 211,251
Cost of Issuance 1,008,594
Total Par Amount 38,030,000
Improvement Fund Activity
Improvement Fund $34,066,993
Reimbursements ($20,937,165)
Flood Control Improvements ($1,000,000)
Estimated Total Interest Earnings $1,841,433
$13,971,261
Fund and Account Balances as of 6-4-2010
Improvement Fund $13,971,261
Bond Fund (Debt Service Payments) $2,300,553
Reserve Fund $2,341,283
Cost of Issuance $15,012
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HOW WILL THE ESTIMATED REMAINING BALANCE OF THE
PROCEEDS BE USED?
Based on the project development costs incurred by Pardee Homes to date, Pardee
Homes has agreed to limit it's use of the bond proceeds to a total of $27 million. Based
on the recent Memorandum of Understanding (MOU) between the City of Moorpark and
Pardee Homes, Pardee is eligible to be reimbursed a remaining $4,000,000 for
improvements constructed regardless of new development being approved by the City. If
the terms, in the MOU are implemented through approval of the proposed residential
project on the former 22-acre school site, then Pardee may request reimbursements up
to the total amount of$27 million mentioned able, which equates to $6,062,835 available
for reimbursements to Pardee.
In addition, in the MOU reached between Pardee Homes and the City of Moorpark, both
parties agree that any funds in the Project Improvement Fund in excess of the amount
required to fund such total reimbursement, less any CFD 2004-1 consultant costs and
adding of the residential units, shall be applied to redeem a portion of the Bonds. Below
is a summary of the proposed Bond Call Calculation.
DATE REPAFED: 06/0412010
Ci4LLOATE 09/0112010
CALL NOTICEFEQUIFa3D: 30
RJND BALANCESASOF610412010
Improvement Fund $13,971,261
Gbst of IssuanoeAcoount $15,012
SLrplus Funds from Bond Fund $218,252
FMAIMING FEBURIN B4T5 (-$6,062,835)
CITYCONainmTS (-$75,000)
AVAI(ABLE EJF;'UJS FUNDS $8,066,690
REDEMPTION. $0.00
CLJF3;ENf RE513:�,E RJND FEWIFE Vl ENT: $2,341,283
FfB3:?%/E FUND FE3)UIFEM ENT AFTER BOND CALL (-$1,761,004)
TOTALAVAILABLE FOR CALLS $8,646,969
BONDSTO BE CNIED ( 1,679) $8,395,000
TOTAL REDEM PTICN\I PENALTY 3.00% $251,850
AMOUNT NE DE3 FOR BOND CALL $8,646,850
TOTALAVAILABLE FOR RJTUF€CALL$
ff M SUF;PWSRJND: $119
The approximately $8.395 million of Bonds to be called will result in a decrease in the
Special Taxes for Facilities for each property owner within the District. The decrease in
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the Special Taxes would result in an approximate 21% decrease to the District's property
owners. Additional Special Tax for Facilities reductions are expected when the former
school site is developed into new single-family residential homes and are also levied a
Special Tax for Facilities, which will result in additional tax revenues available to fund the
CFD bond obligation. This is discussed in depth in a later section of this fact sheet and
is expected to add an about 16% to the approximate 21% decrease mentioned above for
a total decrease, equal to 37%, in the amount of Special Tax that would be necessary to
levy against property in the District, assuming full build-out and no delinquencies.
WHAT IS THE CURRENT STATUS OF THE SCHOOL SITE?
In October of 2008, the Moorpark Unified School District (MUSD) made a decision to not
proceed with the construction of the school site and made a request to terminate the
agreement with Pardee Homes. Pardee Homes and the MUSD have been in a dispute
over MUSD's ability to terminate the Purchase and Sale Agreement with regards to the
purchase of the school site. On April 1, 2009, the City of Moorpark and Pardee Homes
executed the MOU to process a proposed residential project on the school site. The
proposed residential neighborhood would consist of a maximum of 225 additional units
(approximately 70 detached homes and 142 attached homes), but no less than 160
units. However, after evaluating the financial aspects of the project, Pardee decided that
the project would not be feasible for more than 133 detached units.
WILL SPECIAL TAXES BE LOWERED AS A RESULT OF THE NEW
HOMES ON THE PROPOSED SCHOOL SITE AND THE BOND
CALL?
Yes. The effects of the special taxes for the newly proposed homes within the CFD are
still being finalized; however, as mentioned previously, the proposed bond redemption
and the annexation of the proposed 133 additional homes into the CFD would reduce
the amount of special taxes levied against property in the District. As a result, the Rate
and Method of Apportionment (RMA) will be amended to adjust the current special tax
structure, by adding a reduced tax entitled 'Initial Special Tax.' The Initial Special Tax will
reflect the 37% reduction in the Assigned Special Tax and, if approved, would be the
primary tax that is levied against properties in the District to pay debt service and
administration expenses. The Assigned Special Taxes and Maximum Special Taxes
currently identified in the RMA would only be levied as a backup, if necessary. The
decrease and new Special Tax structure may be implemented in Fiscal Year 2010-11,
and would reflect the reduced Special Tax levy on each property's Fiscal Year 2010-11
tax bill installments in December 2010 and April 2011. The new Pardee development will
be levied a Special Tax for Facilities commencing in Fiscal Year 2010-11. The table on
page 6 illustrates the new Special Tax structure, in which, the Initial Special Tax would
be levied rrrst, and the Assigned Special Tax and Maximum Special Tax would
only be levied, if necessary. The new homes proposed for the former school site is still
subject to City Council approval. However, the current proposed development falls under
Tax Class 1 and 2 of Zone 3. Table 6 is only an estimate and is not considered final
until the new development is approved, the bond call occurs, and City Council adopts
the amended Rate and Method of Apportionment.
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SPECIAL TAX SUMMARY
Initial Assigned Backup Maximum
Proposed Special Tax Classes Special Tax Special Tax Rate Special Tax • Special Tax
Zone 1-Planning Area 1 5045-2
Less than<2,151 . $ 2,431 $ 3,858 $ 4,922.08 $ 4,922.08
2,151-2,350 2,548 4,044 4,922.08 4,922.08
2,351-2,550 2,646 4,200 4,922.08 i 4,922.08
2,551-2,750 2,689 4,268 4,922.08 4,922.08
Greater than>2,750 2,825 4,483 4,922.08 4,922.08
Undeveloped and Final Map $ 25,315 $ 40,182 $ 40,182
Zone 2-Planning Area 5 5045-6
Less than<1,401 • $ 1,286 $ 2,041 $ 2,535.12 $ 2,535.12
1,401-1,600 1,502 2,383 2,535.12 2,535.12
Greater than>1,600 1,776 2,818 2,535.12 2,818.00
Undeveloped and Final Map $ 49,789 $ 79,030 $ 79,030
Zone 3-Planning Areas 2,3,4,9
Less than<2,351 $ 2,834 $ 4,497 5045-3 Varies
2,351-2,600 • 2,887 4,581 $ 5,064.93• Varies
2,601-2,850 2,939 4,665 5045-4 Varies
2,851-3,100 3,016 4,786 $ 5,245.06. Varies
3,101-3,350 3,136 4,977 5045-5 Varies
3,351-3,600 3,501 5,556 $ 5,777.52 Varies
3,601-3,850 3,618 5,742 5045-8 Varies
3,851-4,100 3,745 5,943 $ 8,438.40 Varies
4,101-4,350 3,908 6,203 5860 Varies
4,351-4,600 4,026 6,390 $ 4,528.33 Varies
Greater than>4,600 4,143 6,576 Varies
Undeveloped and Final Map $ 16,072 $ 25,511 1$ 25,511
Annexed Undeveloped and Final Map $ 30,040 47,667 $ 47,667
Zone 4-Planning Area 8(Toll Brothers) 5045-8
Less than<3,201 $ 3,697 $ 5,868 $ 7,694.28 $ 7,694.28
3,201-3,750 3,956 6,278 7,694.28 1 7,694.28
3,751-4,300 4,073 6,464 7,694.28 7,694.28
4,301-4,900 4,237 6,725 7,694.28 7,694.28
Greater than>4,900 4,472 7,097 7,694.28 7,694.28
Undeveloped and Final Map $ 6,322 $ 10,034_ $ 10,034
Notes:
(1) These projections are preliminary and subject to change,additional information will be shared
when available.
NOTE: The term "Initial" refers to the probable adjusted Special Tax
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WHAT IS THE TIMING OF CONSTRUCTION OF THE NEW
RESIDENTIAL DEVELOPMENT?
In September 2009, Pardee submitted an application for a Plan Amendment, related
Residential Development Permit and Tentative Tract Map. The current approval process
is expected to be complete by July 2010. There are many administrative steps for
approvals that have to occur before construction can begin. The following is the current
administrative project schedule:
Proposed - . Date
Submittal of Application/Plans 9/18/2009*
Review of Application s/Pla ns 9/18-10/14/2009*
Letter of Incompleteness 10/14/2009*
Revisions to Plans by Applicant 10114-12/23/2009*
Submittal of Revised plans 01/21/2010*
Review and Acceptance of Revised Plans 02/16/2010*
Prep of Draft Development Agreement DA 02/16-03/02/2010*
City Manager review of Draft DA 03/02-05/19/2010*
Negotiation of Draft DA by Ad Hoc Committee 05/19-05/27/2010*
and Recommendation to City Council
Preparation of Council R t on Draft DA 05/27/2010
Preparation of Planning Commission Agenda 05/10-06/1/2010
Report
Advertisement of Public Hearing for Planning 06/05/2010
Commission
Planning Commission Public Hearing on 06/15/2010
Applications
Preparation of City Council Agenda Report 06/15-06/25/2010
Advertisement of Public Hearing for City 06/26/2010
Council
City Council Public Hearing on Applications 07/07/2010
Second Reading of DA Ordinance 07/21/2010
Construction of new home site TBD
*item already completed
WHAT HAPPENS IF THE THERE IS A DELAY IN THE
CONSTRUCTION OF THE PROPOSED 133 HOMES?
The CFD Special Tax for Facilities will be levied against the new proposed Pardee
development immediately after the development is officially annexed into the CFD, which
is expected to occur in July 2010. Thus the adjusted Special Tax Rates would be
effective for the next tax roll with first payment due prior to December 10, 2010.
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WHAT HAPPENS IF THE ANNEXATION FOR THE DEVELOPMENT
DOES NOT PROCEED AS PLANNED OR DOES NOT PROCEED
AT ALL
The City currently expects development approvals to be finalized in July 2010 and the
annexation to occur simultaneously with such final approvals. However until annexation
occurs, no CFD Special Tax for Facilities can be levied against the new development.
At the present time Pardee Homes has verbally stated its approval of the annexation
contingent upon approval of the proposed project. The City has scheduled the necessary
approval and annexation actions for the City Council meetings of June 16, July 7 and
July 21. If the development proposal is altered and/or the annexation does not occur, the
facts described above would change or not occur at all.
For additional information of clarification please contact Hugh Riley, Assistant City
Manager, (805) 517-6215, email - hrileyCcDci.moorpark.ca.us, or Habib Isaac, Senior
Project Manager with Willdan Financial, (951) 587-3574, email - hisaac @wilidan.com.
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