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HomeMy WebLinkAboutAGENDA REPORT 2018 0117 CCSA REG ITEM 09C ITEM 9.C. CITY OF MOORPARK,CALIFORNIA MOORPARK CITY COUNCIL City COMOli Mooting AGENDA REPORT ; 0 Ac11o11 /n W,% TO: Honorable City Council FROM: Ron Ahlers, Finance Director Ak DATE: January 9, 2018 (City Council Meeting of January 17, 2018) SUBJECT: Consider Resolution of Intent to Form City of Moorpark Community Facilities District 2018-1 (CFD 2018-1) Pacific Arroyo and Resolution of Intent to Incur Bonded Indebtedness of CFD 2018-1 SUMMARY The Development Agreement (Agreement) with Pacific Communities Builder, Inc. requests the City to begin the process of forming a Community Facilities District (CFD) also known as a Mello-Roos District. Specifically, that the City initiate and conduct • proceedings for establishment of a CFD, pursuant to the Community Facilities Act of 1982 (the "Act") to be known as "City of Moorpark Community Facilities District No. 20181"`(the "CFD No. 2018-1"). The City Council will consider documents prepared by • City staff and consultants that the Council may adopt to initiate the formation of CFD No. 201.8-1, Pacific Arroyo. The CFD No. 2018-1 proposed special tax is for facilities; there is no proposed special tax for services. BACKGROUND On October 4, 2017, the City Council adopted Ordinance 453 which approved the residential planned developments RPD-9U and. RPD-20U on application of Pacific Communities Builder, Inc. City Council Ordinance 454 approved the development agreement between the City and Pacific Communities Builder, Inc. Sections 6.21 and 7.3 of the Development Agreement propose a Mello-Roos Community Facilities District. The RESOLUTION OF INTENTION declares the intention of the City to establish the CFD, designates the name of the district, identifies the facilities to be acquired and financed, and states the City's intention to levy a special tax to pay for the acquisition, construction, and associated costs of the public facilities. It includes Exhibit A (Special Tax Formula) and Exhibit B (List of Facilities). The Special Tax Formula is the roadmap as to the amount of taxes to be levied against each property in the CFD. The taxes are the security for the bonds of the District; 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 owner of the property in the CFD in the same manner general taxes are payable, as 32 Honorable City Council January 17, 2018 Page 2 the property develops, the special tax shifts from the developer to the homeowner upon sale of the home. Exhibit A is the Rate and Method of Apportionment of Special Tax for the CFD. This document sets forth a definition of terms and assigns a special tax to two zones within the CFD. It also includes the Boundary Map for the CFD. The special tax for Zone 1 is: 2018-19 Assigned Special Tax Rates Zone 1 Land Building Assigned Use Land Use Type Square Class Footage Special Tax 1 Residential'Property > 2,600 $4,598 per Residential Unit 2 Residential Property 2,401 —2,600 $4,303 per Residential Unit 3 Residential Property 2,201 —2,400 $4,156 per Residential Unit 4 Residential Property 2,001 — 2,200 $4,009 per Residential Unit 5 Residential Property <_ 2,000 $3,862 per Residential Unit 6 Non-Residential Property NA $54,606 per Acre On each July 1, commencing July 1, 2019, the Assigned Special Tax rates for Developed Property in Zone 1 shall be increased by two percent (2%) of the amount in effect in the prior Fiscal Year. 33 Honorable City Council January 17, 2018 Page 3 The special tax for Zone 2 is: 2018-19 Assigned Special Tax Rates Zone 2 Land Building Use Land Use Type Square Assigned Class Footage Special Tax 1 Residential Property > 2,100 $3,862 per Residential Unit 2 Residential Property 1,901 —2,100 $3,715 per Residential Unit 3 Residential Property _< 1,900 $3,567 per Residential Unit 4 Non-Residential Property NA $50,292 per Acre On each July 1, commencing July 1, 2019, the Assigned Special Tax rates for Developed Property in Zone 2 shall be increased by two percent (2%) of the amount in effect in the prior Fiscal Year. Exhibit B is the List of Authorized Facilities. The list provides the detail of the scope of facilities that are permitted to be financed by the CFD. 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. A sampling of the authorized facilities: transportation improvements, including but not limited to grading, paving, curbs and gutters, sidewalks, street signalization and signage, street lights and parkway and landscaping. Authorized facilities also include development impact fees of the City imposed in connection with construction of homes within the CFD. Exhibit C is the form of the Notice of Public Hearing on the proposed CFD which the City Clerk will use. The resolution sets February 21, 2018 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 CFD to fund the major infrastructure requirements and associated planning and design costs for the project. At the same time the election of the property owners 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. We are expecting that 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 CFD, protests against the establishment of the district, the extent of the district, or the furnishing of specified types of public facilities or services 34 Honorable City Council January 17, 2018 Page 4 within the district 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 February 21st to proceed with the establishment of the CFD, the voting results are reported and the process is concluded by adoption of additional resolutions and an ordinance. The RESOLUTION OF INTENTION TO INCUR BONDED INDEBTEDNESS declares the intention of the City to provide for the issuance of bonds in an amount not to exceed $25,000,000 to finance the authorized improvements of the CFD. The City will receive about $560,000 from the bond proceeds for city improvements. The bondsare expected to be tax-exempt since they finance public improvements which will be acquired by the City. The maximum term of the bonds is set at forty (40) years from the date of issuance. Refunding of the bonds is also authorized by the resolution. The resolution sets February 21, 2018 at 6:30pm as the date for the required hearing on the bond issuance. Notice of the Public Hearings will need to 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 form of Notice of Hearing is Exhibit C to the Resolution of Intention. FISCAL IMPACT None. STAFF RECOMMENDATION Adopt Resolution Nos. 2018- and 2018- . Attachments: Resolution No. 2018- Intent to Form CFD Resolution No. 2018- Intent to Incur Bonded Indebtedness of CFD 35 RESOLUTION NO. 2018- A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK TO FORM A COMMUNITY FACILITIES DISTRICT AND LEVY A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 2018-1 (PACIFIC ARROYO) TO FINANCE THE ACQUISITION AND CONSTRUCTION OF CERTAIN PUBLIC FACILITIES IN AND FOR SUCH COMMUNITY FACILITIES DISTRICT WHEREAS, under 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"), this City Council (the "Council") of the City of Moorpark (the "City") is authorized to establish a community facilities district and to act as the legislative body for such community facilities district; and WHEREAS, the Council, having received indications of interest and requests on behalf of the owner of the area of all the land proposed to be included in a proposed community facilities district, desires to proceed with the establishment of a community facilities district and authorization to levy a special tax within such district in order to finance costs of public infrastructure necessary or incidental to new development in the City. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES RESOLVE AS FOLLOWS: SECTION 1. Proposal. It is proposed to establish a community facilities district within the City of Moorpark under the terms of the Act to finance costs of public infrastructure necessary or incidental to new development in the City. SECTION 2. Name. The name proposed for the community facilities district is "City of Moorpark Community Facilities District No. 2018-1 (Pacific Arroyo)" (the "CFD"). SECTION 3. Boundary. The proposed boundaries of the CFD are shown on the Map of Proposed Boundaries of Community Facilities District No. 2018-1 (Pacific Arroyo), City of Moorpark, Ventura County, California, on file with the City Clerk, which the Council hereby approves as the map describing the extent of the territory included in the. proposed CFD. The Council finds that the map is in the form and contains the matters prescribed by Section 3110 of the California Streets and Highways Code. The Council hereby directs the City Clerk to certify the adoption of this resolution on the face of the map, and to file a copy of the map in the office of the City Clerk in accordance with Section 3111 of the California Streets and Highways Code and within 15 days of the date of adoption of this resolution but in no event later than 15 days prior to the public hearing provided for herein, transmit the map to the County Recorder for recording in the Book of Maps of Assessment and Community Facilities Districts in the office of the County Recorder of the County of Ventura. 36 Resolution No. 2018- Page 2 SECTION 4. Special Tax. Except to the extent that funds are otherwise available to the CFD to pay for the Facilities (as defined below), 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 the 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, is described in the Rate and Method of Apportionment of Special Tax attached hereto as Exhibit A and hereby incorporated herein (the "Rate and Method"). The Council hereby finds that the provisions of Sections 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 5. Facilities. The type of public facilities proposed to be financed by the CFD and pursuant to the Act shall consist of those items listed as Facilities (the "Facilities") on Exhibit B 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. SECTION 6. Exempt Property. Except as may otherwise be provided by law or by the Rate and Method, 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 thelevy 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, the 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. It is anticipated that the Special Tax will be billed as a separate line item on the regular property tax bill. However, the Council reserves the right, under Section 53340 of the Act, to utilize any method of collecting the special tax which it shall, from time to time, determine to be in the best interests of the City, including, but not limited to, direct billing by the City to the property owners and supplemental billing. SECTION 7. Election. The levy of the Special Tax shall be subject to the approval of the qualified electors of the CFD at a special election. The proposed voting procedure shall be by mailed or hand-delivered ballot among the landowners in the 37 Resolution No. 2018- Page 3 proposed CFD, with each owner having one vote for each acre or portion of an acre such owner owns in the CFD. The Council hereby determines that the Facilities are necessary to meet increased demands placed upon local agencies as the result of development occurring within the CFD. SECTION 8. Bonds. It is the intention of the 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 issued in these proceedings shall be callable in accordance with the provisions of the Act, and shall be issued in such series and bear interest payable semi-annually or in such other manner as the 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, shall mature not to exceed 40 years from the date of the issuance thereof and shall be as more specifically set forth in any resolution authorizing the issuance of such bonds. SECTION 9. Report. The City Finance Director, 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 cause and direct a study of said proposed CFD and the Facilities, and to cause to be prepared for filing at the public hearing the report required by Section 53321.5 of the Act (the "CFD Report") presenting at least the following: (a) A brief description of the Facilities 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 other authorized uses of Special Tax proposed to be levied in the CFD, 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 Sections 53321.5 and 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. The Council hereby sets Wednesday, February 21, 2018, at 6:30 p.m., at the City of Moorpark Civic Center Council Chambers located at 799 Moorpark Avenue, Moorpark, California 93021, as the time and place when and where the 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. At the hearing; testimony concerning the CFD, the extent of the CFD or the furnishing of the particular types of public facilities will be heard and protests will be considered from registered voters residing within the CFD and persons owning real property within the CFD. Written protests by the owners of a majority of the land which would be subject to special taxation within the proposed CFD will require the 38 Resolution No. 2018- Page 4 suspension of proceedings for at least one year. Written protests must be filed with the City Clerk at or before the time fixed for the hearing. If such protests are directed only against certain elements of the proposed improvements or proposed special tax, and if such protests constitute a majority protest, only those elements shall be deleted from the proceedings. SECTION 11. Notice. The City Clerk is hereby directed to cause notice of the public hearing, attached hereto as Exhibit C, to be given by one-time publication in a newspaper of general circulation in the area of the CFD. The publication shall be completed at least 7 days before the date of the public hearing referenced above. The notice shall be substantially in the form specified in Section 53322 of the Act and attached hereto, with the form summarizing the provisions hereof hereby specifically approved. SECTION 12. Effective Date. This Resolution shall take effect upon its adoption. SECTION 13. Certification. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be tiled in the book of original Resolutions. PASSED AND ADOPTED this 17th day of January, 2018 Janice S. Parvin, Mayor ATTEST: Maureen Benson, City Clerk 39 Resolution No. 2018- Page 5 EXHIBIT A RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX COMMUNITY FACILITIES DISTRICT NO. 2018-1 (PACIFIC ARROYO) OF THE CITY OF MOORPARK A Special Tax shall be levied on all Taxable Property within the boundaries of Community Facilities District No. 2018-1 (Pacific Arroyo) of the City of Moorpark ("CFD No. 2018-1") and collected each Fiscal Year commencing in Fiscal Year 2018-19, in an amount determined by the CFD Administrator through the application of the procedures described below. All of the real property within CFD No. 2018-1, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided. 1. 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. An Acre means 43,560 square feetof land. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of ' California. "Administrative Expenses" means the actual or reasonably estimated costs related to the administration of CFD No. 2018-1 including, but not limited to: the costs of preparing and computing the Special Tax (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City, the County or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee.(including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2018-1, or any designee thereof complying with arbitrage rebate requirements, including without limitation rebate liability costs and periodic rebate calculations; the costs to the City, CFD No. 2018-1, or any designee thereof complying with disclosure or reporting requirements of the City or CFD No. 2018-1, associated with applicable federal and State laws; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs to the City, CFD No. 2018-1, or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2018-1 for any other administrative purposes of CFD No. 2018-1, including attorney's fees and other costs related to commencing and pursuing any foreclosure of delinquent Special Taxes. 40 Resolution No. 2018- Page 6 "Affordable Residential Property" means all Assessor's Parcels for which an Affordable Purchase Development Agreement has been recorded on title of the property or which is otherwise classified as deed-restricted affordable property. "Approved Property" means all Assessor's Parcels of Taxable Property: (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) that have not been issued a Building Permit on or prior to the May 1S preceding the Fiscal Year in which the Special Tax is being levied. "Assessor" means the Assessor of the County of Ventura. "Assessor's Parcel" means a lot or parcel shown on an Assessor's Parcel Map with an assigned Assessor's Parcel Number. "Assessor's Parcel Map" means an official map of the Assessor designating parcels by Assessor's Parcel Number. "Assessor's Parcel Number" means the number assigned to an Assessor's Parcel by the County for purposes of identification. "Assigned Special Tax" means the Special Tax of that name described in Section 3.A below. "Backup Special Tax" means the Special Tax of that name described in Section 3.B below. "Bonds" means any Debt of CFD No. 2018-1, whether in one or more series, secured by the levy of Special Taxes. "Boundary Map" means the map of the boundaries of CFD 2018-1 recorded on , 2018 in the County Recorder's Office in Book _, Pages , of Maps of Assessments and Community Facilities Districts (instrument number ). "Building Permit" means a building permit for construction of a Residential Unit or non-residential building within CFD No. 2018-1 issued by the.City. "Building Square Footage" means all of the square footage of usable area within the. perimeter of a residential structure, not including any carport, walkway, garage, overhang, or similar area. The determination of Building Square Footage shall be made by reference to the Building Permit(s) issued for such Assessor's Parcel and/or by reference to appropriate records kept by the City. "Calendar Year" means the period commencing January 1 of any year and ending the following December 31. "CFD Administrator" means an authorized representative of the City, or designee thereof, responsible for determining the Special Tax Requirement, for preparing the Special Tax roll and/or calculating the Backup Special Tax. "CFD No. 2018-1" means the Community Facilities District No. 2018-1 (Pacific Arroyo) of the City of Moorpark. "City" means the City of Moorpark, California. 41 Resolution No. 2018- Page 7 "Condominium" means a unit, whether attached or detached, meeting the statutory definition of a condominium contained in the California Civil Code Section 4285. "Council" means the City Council of the City acting as the legislative body of CFD No. 2018-1 under the Act. "County" means the County of Ventura, California. "Debt" means any binding obligation to pay or repay a sum of money, including obligations in the form of bonds, 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. "Debt Service" means for each Fiscal Year, the total amount of principal and interest payable on any Outstanding Bonds during the Calendar Year commencing on January 1 of such Fiscal Year. "Developed Property" means for each Fiscal Year, all Taxable Property, exclusive of Provisional Property, for which a Building Permit was issued prior to May 1 of the previous Fiscal Year. An Assessor's Parcel classified as Developed Property but for which the Building Permit that caused such Assessor's Parcel to be classified as Developed Property has been cancelled and/or voided prior to the Fiscal Year for which Special Taxes are being levied shall be reclassified as Undeveloped Property, provided that the amount of Special Taxes that could be levied on all Taxable Property by CFD No. 2018-1 after such reclassification shall not be less than 1.1 times the annual Debt Service on all Outstanding Bonds plus Administrative Expenses. If Bonds have not been issued, an Assessor's Parcel classified as Developed Property for which such a Building Permit has been cancelled and/or voided shall,be reclassified as Undeveloped Property. "Exempt Property" means for each Fiscal Year, all Assessor's Parcels designated as being exempt from Special Taxes pursuant to Section 8 below. "Final Map" means a subdivision of property by 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 recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots for which Building Permits may be issued without further subdivision. "Fiscal Year" means the period starting on July 1 and ending the following June 30. "Indenture" means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. "Land Use Class" means any of the classes listed in Table 1 or Table 2 under Section 3 below: "Lot" means a parcel created by a Final Map on which one or more Residential Units • can be constructed. 42 Resolution No. 2018- Page 8 "Maximum Special Tax" means for each Assessor's Parcel, the maximum Special Tax, determined in accordance with Sections 3.0 and 3.D below, which may be levied in a given Fiscal Year on such Assessor's Parcel of Taxable Property. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued for the purpose of constructing one or more non-residential units or facilities. "Outstanding Bonds" means all Bonds, which are deemed to be outstanding under the Indenture. "Prepayment Amount" means theamount required to prepay the Special Tax obligation in full for an Assessor's Parcel as described in Section 6.A below. "Property Owner Association Property" means any Assessor's Parcel within the boundaries of CFD No. 2018-1 owned in fee by a property owner association, including any master or sub-association. "Proportionately" or "Proportionate" means for Developed Property, that the ratio of the actual Special Tax levy to the applicable Assigned Special Tax or Backup Special Tax is equal for all Assessor's Parcels of Developed Property. For Approved Property, "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor's Parcels of Approved Property. For Undeveloped Property, "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor's Parcels of Undeveloped Property. "Proportionately" may similarly be applied to other categories of Taxable Property. "Provisional Property" means all Assessor's Parcels of Public Property, Property Owner Association Property or property that would otherwise be classified as Exempt Property pursuant to the provisions of Section 8, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property below the required minimum Acreage as set forth in Section 8. "Public Property" means any property within the boundaries of CFD No. 2018-1, which is owned by, or irrevocably offered for dedication to the federal government, the State of California, the County, the City or any other public agency; provided however that any property owned by a public agency and leased to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with its use. "Residential Property" means all Assessor's Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing one or more Residential Units. "Residential Unit" means each separate residential dwelling unit that comprises an independent facility capable of conveyance or rental, separate from adjacent residential dwelling units. "Special Tax" means any special tax levied within CFD No. 2018-1 pursuant to the Act and this Rate and Method of Apportionment of Special Tax. 43 Resolution No. 2018- Page 9 "Special Tax Obligation" means the total obligation for the owner of an Assessor's Parcel of Taxable Property to pay the Special Tax for the remaining term of CFD No. 2018-1 as specified in Section 7. "Special Tax Requirement" means for each Fiscal Year an amount determined by the City to: (i) pay regularly scheduled Debt Service on all Outstanding Bonds; (ii) pay periodic costs on the Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on the Outstanding Bonds; (iii) pay Administrative Fees and Expenses; (iv) pay any amounts required to establish or replenish any.reserve funds for all Outstanding Bonds, provided that no amount shall be included to replenish a reserve fund if such amount was included in computation of the Special Tax Requirement as a reserve fund replenishment or anticipated delinquency in a previous Fiscal Year and remains unpaid; (v) accumulate funds to pay directly or reimburse for acquisition or construction of facilities, provided that the inclusion of such amount does not cause the Special Tax to be levied on Approved Property or Undeveloped Property in excess of the amount needed to otherwise meet the Special Tax Requirement; and (vi) pay for reasonably anticipated delinquent Special Taxes for such Fiscal Year based on the delinquency rate for Special Taxes levied in the previous Fiscal Year; less (vii) a credit for funds available to reduce the Special Tax levy, as determined by the CFD Administrator pursuant to the Indenture. "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No. 2018-1, which are not exempt from the levy of the Special Tax pursuant to law or Section 8 below. "Trustee" means the trustee or fiscal agent under the Indenture. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Approved Property, Developed Property or Provisional Property. "Zone 1" means the area identified as Zone 1 on Exhibit A attached hereto. "Zone 2" means the area identified as Zone 2 on Exhibit A attached hereto. 2. LAND USE CLASSIFICATION Each Fiscal Year, beginning with Fiscal Year 2018-19, each Assessor's Parcel within CFD No. 2018-1 shall be classified as Taxable Property or Exempt Property. In addition, all Taxable Property shall further be classified as Developed Property, Approved Property, Undeveloped Property or Provisional Property, and all such Taxable Property shall be subject to the levy of Special Taxes in accordance with this Rate and Method of Apportionment of Special Tax determined pursuant to Sections 3 and 4 below. Furthermore, each Assessor's Parcel of Developed Property shall be classified according to its applicable Land Use Class based on Tables 1 and 2 below. 44 Resolution No. 2018 • - Page 10 3. SPECIAL TAX RATES A. Assigned Special Tax for Developed Property in Zone 1 The Assigned Special Tax applicable to an Assessor's Parcel classified as Developed Property in Zone 1 commencing in Fiscal Year 2018-19 shall be determined pursuant to Table 1 below. Table 1 2018-19 Assigned Special Tax Rates Zone 1 Land Building Use Land Use Type Square Assigned Class Footage Special Tax 1 Residential Property > 2,600 $4,598 per Residential Unit 2 Residential Property 2,401 —2,600 $4,303 per Residential Unit 3 Residential Property 2,201 —2,400 $4,156 per Residential Unit 4 Residential Property 2,001 —2,200 $4,009 per Residential Unit 5 Residential Property <_ 2,000 $3,862 per Residential Unit 6 Non-Residential Property NA $54,606 per Acre On each July 1, commencing July 1, 2019, the Assigned Special Tax rates for Developed Property in Zone 1 shall be increased by two percent (2%). of the amount in effect in the prior Fiscal Year. 45 Resolution No. 2018- Page 11 B. Assigned Special Tax for Developed Property in Zone 2 The Assigned Special Tax applicable to an Assessor's Parcel classified as Developed Property in Zone 2 commencing in Fiscal Year 2018-19 shall be determined pursuant to Table 2 below. Table 2 218-19 Assigned Special Tax Rates Zone 2 Land Building Assigned Use Land Use Type Square Class Footage Special Tax 1 Residential Property > 2,100 $3,862 per Residential Unit 2 Residential Property 1,901 —2,100 $3,715 per Residential Unit 3 Residential Property <_ 1,900 $3,567 per Residential Unit 4 Non-Residential Property NA $50,292 per Acre On each July 1, commencing July 1, 2019, the Assigned Special Tax rates for Developed Property in Zone 2 shall be increased by two percent (2%) of the amount in effect in the prior Fiscal Year. C. Backup Special Tax for Developed Property in Zone 1 The Backup Special Tax for Developed Property within Zone 1 for Fiscal Year 2018-19 shall be $54,606 per Acre. For the purpose of calculating the Backup Special Tax, the land area applicable to Condominiums shall be computed from the Acreage of the Lot on which the Condominium is located, with the Acreage for such Lot allocated equally among all of the Condominiums located or to be located on such Lot. On each July 1, commencing July 1, 2019, the Backup Special Tax for Developed Property in Zone 1 shall be increased by two percent (2%) of the amount in effect in the prior Fiscal Year. D. Backup Special Tax for Developed Property in Zone 2 The Backup Special Tax for Developed Property with Zone 2 for Fiscal Year 2018-19 shall be $50,292 per Acre. For the purpose of calculating the Backup Special Tax, the land area applicable to Condominiums shall be computed from the Acreage of the Lot on which the 46 Resolution No. 2018- Page 12 Condominium is located, with the Acreage for such Lot allocated equally among all of the Condominiums located or to be located on such Lot. On each July 1, commencing July 1, 2019, the Backup Special Tax for Developed Property in Zone 2 shall be increased by two percent (2%) of the amount in effect in the prior Fiscal Year. E. Maximum Special Tax for Developed Property in Zone 1 and Zone 2 The Maximum Special Tax for Developed Property in each Fiscal Year shall be the greater of the Assigned Special Tax for Developed Property and the Backup Special Tax for Developed Property for such Fiscal Year. F. Maximum Special Tax for Provisional Property, Approved Property and Undeveloped Property in Zone 1 The Maximum Special Tax for Provisional Property, Approved Property and Undeveloped Property commencing in Fiscal Year 2018-19 shall be $54,606 per Acre. On each July 1, commencing July 1, 2019, the Maximum Special Tax for Provisional Property, Approved Property and Undeveloped Property in Zone 1 shall be increased by two percent (2%) of the amount in effect in the prior Fiscal Year. G. Maximum Special Tax for Provisional Property, Approved Property and Undeveloped Property in Zone 2 The Maximum Special Tax for Provisional Property, Approved Property and Undeveloped Property commencing in Fiscal Year 2018-19 shall be $50,292 per Acre. On each July 1, commencing July 1, 2019, the Maximum Special Tax for Provisional Property, Approved Property and Undeveloped Property in Zone 2 shall be increased by two percent (2%) of the amount in effect in the prior Fiscal Year. 4. METHOD OF APPORTIONMENT For each Fiscal Year, commencing Fiscal Year 2018-19, the CFD Administrator shall levy the Special Tax on all Taxable Property in accordance with the following steps: Step 1: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax as needed to satisfy the Special Tax Requirement; Step 2: If additional monies are needed to satisfy the Special Tax Requirement after Step 1 has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Approved Property at up to 100% of the Maximum Special Tax for Approved Property; 47 Resolution No. 2018- Page 13 Step 3: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property at up to 100% of the Maximum Special Tax for Undeveloped Property; Step 4: If additional monies are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the levy of the Special Tax on each Assessor's Parcel of Developed Property for which the Maximum Special Tax is determined through the application of the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to 100% of the Maximum Special Tax for each such Assessor's Parcel. Step 5: If additional monies are needed to satisfy the Special Tax Requirement after the first four steps have been completed, then the Special Tax shall be levied Proportionately on each Assessor's Parcel of Provisional Property up to 100% of the Maximum Special Tax for Provisional Property; Notwithstanding the above, under no circumstances will the Special Tax levied in any Fiscal Year against any Assessor's Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased as a result of a delinquency or default in the payment of the Special Tax applicable to any other Assessor's Parcel within CFD No. 2018-1 by more than ten percent (10%) above what would have been levied in the absence of such delinquencies or defaults. 5. COLLECTION OF SPECIAL TAXES Collection of the Special Tax shall be made by the County in the same manner as ordinary ad valorem property taxes are collected and the Special Tax shall be subject to the same penalties and the same lien priority in the case of delinquency as ad valorem taxes; provided, however, that the Council may provide for (i) other means of collecting the Special Tax, including direct billings thereof to the property owners; and (ii) judicial foreclosure of delinquent Special Taxes. 6. PREPAYMENT OF SPECIAL TAX OBLIGATION A. Prepayment in Full Property owners may prepay and permanently satisfy the Special Tax Obligation by a cash settlement with the City as permitted under Government Code Section 53344. The following definitions apply to this Section 6: "CFD Public Facilities Costs" means $20,000,000 or such lower number as (i) shall be determined by the CFD Administrator as sufficient to acquire or construct the facilities to be financed under the Act and financing program for CFD No. 2018-1, or (ii) shall be determined by the Council concurrently with a covenant that it will not issue any more Bonds (except refunding bonds). "Construction Fund" means the fund (regardless of its name) established pursuant to the Indenture to hold funds, which are currently available for 48 Resolution No. 2018- Page 14 expenditure to acquire or construct the facilities or pay fees authorized to be funded by CFD No. 2018-1. "Future Facilities Costs" means the CFD Public Facilities Costs minus (i) costs previously paid from the Construction Fund to acquire or construct the facilities, (ii) monies currently on deposit in the Construction Fund, and (iii) monies currently on deposit in an escrow or other designated fund that are expected to be available to finance CFD Public Facilities Costs. "Outstanding Bonds" means all Previously Issued Bonds, which remain outstanding as of the first interest and/or principal payment date following the current Fiscal .Year excluding Bonds to be redeemed at a later date with proceeds of prior Special Tax prepayments. "Previously Issued Bonds" means all Bonds that have been issued prior to the date of prepayment. The Special Tax Obligation applicable to an Assessor's Parcel of Developed Property, Approved Property or Undeveloped Property for which a Building Permit has been issued may be prepaid and the obligation to pay the Special Tax for such Assessor's Parcel permanently satisfied as described herein, provided that a prepayment may be made with respect to a particular Assessor's Parcel only if there are no delinquent Special Taxes with respect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel eligible to prepay the Special Tax Obligation shall provide the CFD Administrator with written notice of intent to prepay, and designate or identify the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the Prepayment Amount for such Assessor's Parcel within thirty (30) days of the request, and may charge a reasonable fee for providing this service. Prepayment must be made at least 60 days prior to any redemption date for the CFD No. 2018-1 Bonds to be redeemed with the proceeds of such prepaid Special Taxes, unless a shorter period is acceptable to the Trustee and the City. The Prepayment Amount (defined below) shall be calculated for each applicable Assessor's Parcel or group of Assessor's Parcels as summarized below (capitalized terms as defined below): Bond Redemption Amount plus Redemption Premium plus Future Facilities Prepayment Amount plus Defeasance Amount plus Prepayment Administrative Fees and Expenses less Reserve Fund Credit less Capitalized Interest Credit Total: equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount (defined in Step 14 below) shall be calculated as follows: 49 Resolution No. 2018- Page 15 Step No.: 1. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel. 2. For Assessor's Parcels of Developed Property, determine the Maximum Special Tax. For Assessor's Parcels of Approved Property and Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for that Assessor's Parcel as though it was already designated as Developed Property, based upon the Building Permit which has already been issued for that Assessor's Parcel. 3. Divide the Maximum Special Tax computed pursuant to paragraph 2 by the total expected Maximum Special Tax revenue for CFD No. 2018-1 assuming all Building Permits have been issued (build-out) within CFD No. 2018-1, excluding any Assessor's Parcels for which the Special Tax Obligation has been previously prepaid. 4. Multiply the quotient computed pursuant to paragraph 3 by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid for all applicable parcels (the "Bond Redemption Amount"). 5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium (expressed as a percentage), if any, on the Outstanding Bonds to be redeemed at the first available call date (the "Redemption Premium"). 6. Compute the Future Facilities Costs. 7. Multiply the quotient computed pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to,compute the amount of Future Facilities Costs to be prepaid (the "Future Facilities Prepayment Amount"). 8. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the expected redemption date for the Outstanding Bonds which, depending on the Indenture, may be as early as the next interest payment date. 9. Compute the amount the CFD Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount less the Future Facilities Prepayment Amount and the Prepayment Administrative Fees from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment. 10. Subtract the amount computed in paragraph 9 from the amount computed in paragraph 8(the "Defeasance Amount"). 11. Calculate the administrative fees and expenses of CFD No. 2018-1, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming CFD No. 2018-1, and 50 Resolution No. 2018- Page 16 the costs of recording any notices to evidence the prepayment and the redemption (the "Prepayment Administrative Fees"). 12. The reserve fund credit (the "Reserve Fund Credit") shall equal the lesser of : (a) the expected reduction in the reserve requirement (as defined in the indenture), 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 requirement in effect after the • redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero. 13. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to paragraph 3 by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the "Capitalized Interest Credit"). 14. The amount to prepay the Special Tax Obligation is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 7, 10, and 11, less the amounts computed pursuant to paragraphs 12 and 13 (the "Prepayment Amount"). 15. From the Prepayment Amount, the sum of the amounts computed pursuant to paragraphs 4, 5, and 10, less the amounts computed pursuant to paragraphs 12 and 13 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Outstanding Bonds or make Debt Service payments. The amount computed pursuant to paragraph 7 shall be deposited into the Construction Fund. The amount computed pursuant to paragraph 11 shall be retained by CFD No. 2018-1. The Prepayment Amount may be sufficient to redeem an amount other than a $5,000 increment of CFD No. 2018-1 Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to redeem CFD No. 2018-1 Bonds to be used with the next prepayment of CFD No. 2018-1 Bonds. The CFD Administrator will confirm that all previously levied Special Taxes have been paid in full. With respect to any Assessor's Parcel for which the Special Tax Obligation is prepaid in full, once the CFD Administrator has confirmed that all previously levied Special Taxes have been paid, the Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of the Special Tax and the release of the Special Tax lien on such Assessor's Parcel, and the obligation of the owner of such Assessor's Parcel to pay the Special Tax shall cease. Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the aggregate amount of Maximum Special Taxes less 51 Resolution No. 2018- Page 17 Administrative Expenses that may be levied on Taxable Property after the proposed prepayment is at least 1.1 times the Debt Service on all Outstanding Bonds in each Fiscal Year. B. Partial Prepayment The Special Tax on an Assessor's Parcel of Developed Property, Approved Property or Undeveloped Property for which a building permit has been issued may be partially prepaid. The amount of the prepayment shall be calculatedas in Section 6.A.; except that a partial prepayment shall be calculated according to the following formula: PP ='(PE-A) x F-FA These terms have the following meaning: PP = the partial prepayment PE = the Prepayment Amount calculated according to Section 6.A F = the percentage by which the owner of the Assessor's Parcel(s) is partially prepaying the Special Tax Obligation A = the Prepayment Administrative Fees and Expenses from Section 6.A The owner of any Assessor's Parcel who desires such partial prepayment shall notify the CFD Administrator of (i) such owner's intent to partially prepay the Special Tax Obligation, (ii) the percentage by which the Special Tax Obligation shall be prepaid, and (iii) the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax Obligation for an Assessor's Parcel within sixty (60) days of the request and may charge a reasonable fee for providing this service. With respect to any Assessor's Parcel that is partially prepaid, the City shall .(i) distribute the funds remitted to it according to Section 6.A., and (ii) indicate in the records of CFD No. 2018-1 that there has been a partial prepayment of the Special Tax Obligation and that a portion of the Special Tax withrespect to such Assessor's Parcel, equal to the outstanding percentage (1.00 - F) of the Maximum Special Tax, shall continue to be levied on such Assessor's Parcel. Notwithstanding the foregoing, no partial prepayment shall be allowed unless the aggregate amount of Maximum Special Taxes less Administrative Expenses that may be levied on Taxable Property after the proposed partial prepayment is at least 1.1 times the Debt Service on all Outstanding Bonds in each Fiscal Year. 7. TERM OF SPECIAL TAX The Special Tax shall be levied as long as necessary to meet the Special Tax Requirement except that in no event shall the Special Tax be levied after Fiscal Year 2060-61. 52 Resolution No. 2018- Page 18 8. EXEMPTIONS Within Zone 1, the CFD Administrator shall classify as Exempt Property (i) Assessor's Parcels of Public Property, (ii) Assessor's Parcels of Property Owner Association Property, (iii) 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, and (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 total Acreage of all Taxable Property in Zone 1 to less than 11.86 Acres. Assessor's Parcels within Zone 1 which cannot be classified as Exempt Property because such classification would reduce the total Acreage of all Taxable Property to less than 11.86 Acres shall be classified as Provisional Property and will continue to be subject to the Special Taxes accordingly. Tax exempt status for Assessor's Parcels within Zone 1 for the purpose of this paragraph will be assigned by the CFD Administrator in the chronological order in which such Assessor's Parcels become eligible for classification as Exempt Property. Within Zone 2, the CFD Administrator shall classify as Exempt Property all Assessor's Parcels classified as Affordable Residential Property as determined reasonably by the CFD Administrator provided that no such classification would reduce the total Acreage of all Taxable Property in Zone .2 to less than 6.87 Acres. In addition, the CFD Administrator shall also classify as Exempt Property within Zone 2 (i) Assessor's Parcels of Public Property, (ii) Assessor's Parcels of Property Owner Association Property, (iii) 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, and (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 additional classification would reduce the total Acreage of all Taxable Property within Zone 2 to less than 6.87 Acres. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the total Acreage of all Taxable Property within Zone 2 to less than 6.87 Acres shall be classified as Provisional Property and will continue to be subject to the Special Taxes accordingly. Tax exempt status for the purpose of this paragraph will be assigned by the CFD Administrator first to Assessor's Parcels classified as Affordable Residential Property in chronological order in which such Assessor's Parcels becomes classified as Affordable Residential Property, and second to all other Assessor's Parcels in the chronological order in which such Assessor's Parcels become eligible for classification as Exempt Property. Accordingly, an Assessor's Parcel classified as Exempt Property (other than an Assessor's Parcel classified as Affordable Residential Property) may be subsequently reclassified as Provisional Property if one or more Assessor's Parcels of Affordable Residential Property are classified as Exempt Property. If the use of an Assessor's Parcel of Exempt Property changes so that such Assessor's Parcel is no longer classified as one of the uses that would make such Assessor's Parcel eligible to be classified as Exempt Property, such Assessor's Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property and classified according to its use. 53 Resolution No. 2018- Page 19 9. APPEALS Any landowner who pays the Special Tax and claims the amount of the Special Tax levied on his or her Assessor's Parcel is in error shall first consult with the CFD Administrator regarding such error not later than twelve (12) months after first having paid the first installment of the Special Tax that is disputed. If following such consultation, the CFD Administrator determines that an error has occurred, then the CFD Administrator shall take any of the following actions, in order of priority, in order to correct the error: (i) Amend the Special Tax levy on the landowner's Assessor's Parcel(s) for the current Fiscal Year prior to the payment date, (ii) Require the CFD to reimburse the landowner for the amount of the overpayment to the extent of available CFD funds, or (iii) Grant a credit against, eliminate or reduce the future Special Taxes on the landowner's Assessor's Parcel(s) in the amount of the overpayment. If following such consultation and action by the CFD Administrator the landowner believes such error still exists, such person may file a written notice of appeal with the City Council. Upon the receipt of such notice, the City Council or designee may establish such procedures as deemed necessary to undertake the review of any such appeal. If the City Council or designee determines an error still exists, the CFD Administrator shall take any of the actions described as (i), (ii) and (iii) above, in order of priority, in order to correct the error. 10. INTERPRETATION AND APPLICATION OF SPECIAL TAX The City Council or designee thereof shall interpret this Rate and Method of Apportionment of Special Tax for purposes of clarifying any ambiguities and make determinations relative to the administration of the Special Tax and any landowner appeals. The decision of the City Council or designee shall be final. Without Council approval, the finance official of the City may make minor, non- substantive administrative and technical changes to the provisions of this RMA that do not materially affect the rate, method of apportionment, or manner of collection of the Special Tax for purposes of administrative efficiency or convenience or to comply with new applicable federal, state, or local law. The City, upon request of an owner of land in CFD No. 2018-1 that is not a Developed Property, also may amend this RMA in any manner acceptable to the City, without Resolution or Ordinance of the Council, upon the affirmative vote of such owner and without the vote of owners of any other parcels in the CFD 2018-1, provided such amendment only affects such owner's parcel and does not reduce the total Maximum Annual Special Tax revenue attributable to the parcels affected. 54 Resolution No. 2018- Page 20 Exhibit A to Rate and Method of Apportionment CFD Boundary Map MAP OF PROPOSED BOUNDARIES OF CITY OF MOORPARK SHEET,OF, COMMUNITY FACILITIES DISTRICT NO.2018-1 (PACIFIC ARROYO) COUNTY OF VENTURA STATE OF CALIFORNIA 0 — I W ® OLEDINT.THISOFFICE OF THE COYCLERK OF THE CITY OF MOORPARK.THIS DAY OF .2018. —�m (HEREBY CERTIFY THAT THE WITHIN MAP SHOWING THE PROPOSED BOUNDARIES OF THE CRY OF MOORPARK E Los Angeles Blvd < - S COMMUNITY FACILmCOUNTRICTN0.2018-1(PACIFIC ARROYO). — m CITY OF MOORPARK,COUNTY OF VENTURA STATE OF CALIFORNIA s ( WAS APPROVEDBY THE CITY COUNCIL OF IRE_ i , .•••♦�♦-♦•♦s,,♦-.-, REGULAR MEETING THEREOF.HELD ONOF MTHE OpRPARKATA. �.�♦.♦♦♦.♦♦ DAY OF 3016.BY ITS RESOLUTION i ♦..♦.♦♦._._., L— CITY CLERK CRY OF MOORPARK • :♦..♦.♦♦♦♦♦'II...♦..... 1 THE HOUR OF DAY OCLOCI( M..N AND COQ PAGE OF MAPS OF INSTRUMENT TAND COMMUNITY I♦.`.♦♦.I.♦♦♦.. FACILITIES DISTRICTS AND A6IN6TiWMENT ATTHE REWI:STRECOFTHE CITYOF NOORPARK N TIE OFFK:E .♦�♦♦•♦♦♦..♦�0 40.♦♦♦. STATE Of CALIFORNI0.��OFTHE COUNTY OF VENN0.A //4 ?.?.�:!•-...I BY DEPLOY —— _ ,'♦•��♦♦♦• I CWNT'IRECORDER/CLERK . —o'llg" ( COUNTY OF VENTURA •♦'••0 ON THIS MAP B.11 BE TTHOSEFLSI.ANDDME ONS AS • _.Ae --- _ SHOWN ON THE VENTURA COUNTY ASSESSORS MAPS _ FOR THOSE PARCELS LISTED. D1 TLE VENTURACOUNTYASSESSOR'S MAPS SHALL GOVERN — SMALL DETAILS CONCERNING RAE LINES AND DIMENSIONS� / p4t0�IO�. FSICH LOIS 00.PARCELS. `MAP REFERENCE ASSESSOR'S NUMBER PARCEL NUMBER 1 _ 506-0-030-180 2 506-0-030195 Legend ---- 3 506-0-030-205 . QM COMUNITY FACILITES DISTRICT BOUNDARY 4 506-0-030-245 Zona 5 506-0030-255 FA, 6 506-°-050515 WILLDAN JJ2 7 506-0-050-525 _,A RUInciel Services • • 55 Resolution No. 2018- Page 21 EXHIBIT B City of Moorpark Community Facilities District No. 2018-1 (Pacific Arroyo) Ventura County, California LIST OF AUTHORIZED FACILITIES The Mello-Roos Community Facilities Act of 1982 (the "Act") authorizes the creation of a Community Facilities District to finance public services and facilities, within or of benefit to the land in the district. The following services, facilities, fees, improvements, are eligible for funding through the City of Moorpark Community Facilities District No. 2018-1 (Pacific Arroyo) (the "CFD"). The types of facilities authorized to be financed by the CFD are transportation improvements, including but not limited to grading, paving, curbs and gutters, sidewalks, street signalization and signage, street lights and parkway and landscaping related thereto, domestic and recycled water distribution facilities including wells, treatment facilities, reservoirs and booster pumps, sewer collection facilities, solid waste facilities, storm drainage facilities, park and recreation facilities and equipment, fire facilities and equipment, police facilities and equipment, library facilities and equipment, air quality facilities, public art, affordable housing related-fees and costs, general governmental office, administrative and meeting facilities, any other capital facilities authorized to be financed under the Act and land, rights-of-way and easements necessary for any of such facilities; reimbursements to other areas for infrastructure facilities serving development in the CFD; and any other expenses incidental to the construction, completion, and inspection of the facilities, including but not limited to and the cost of planning, permitting and designing the facilities, land acquisition and easement payments for authorized facilities; project management; construction staking; engineering studies and reports; utility relocation and demolition costs incidental to the construction of the public facilities. Authorized facilities also include development impact fees of the City imposed in connection with construction of homes within the CFD and attributable to any capital facilities or City services authorized to be financed under the Act. In addition to the above, other incidental expenses are authorized to be financed by the CFD as authorized by the Act, including but not limited to: CFD formation, administration and bond issuance costs, the cost of planning, permitting, approving, and designing the facilities (including the cost of environmental evaluation, orthophotography, environmental remediation/mitigation, and compliance); land acquisition and easement payments for authorized CFD facilities; project management, construction staking; engineering studies and preparation of an engineer's report for the use of recycled water; utility relocation and demolition costs incidental to the 56 Resolution No. 2018- Page 22 construction of the public facilities; cost associated with the creation of the CFD, issuance of bonds, determination of the amount of taxes, collection of taxes, payment of taxes or costs otherwise incurred to carry out the authorized purposes of the CFD; reimbursements to other areas for infrastructure facilities or planning purposes serving development in the CFD; and any other expenses incidental to the construction, completion, and inspection of the facilities and related expenses associated with the CFD and any of the foregoing. 57 Resolution No. 2018- Page 23 EXHIBIT C FORM OF NOTICE OF PUBLIC HEARING ON PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2018-1 (PACIFIC ARROYO) CITY OF MOORPARK, VENTURA COUNTY, CALIFORNIA The City of Moorpark is considering the formation of a community facilities district (the "CFD") under the authority of the Mello-Roos Community Facilities Act of 1982, as amended, to fund certain public facilities related to new development within the City of Moorpark, and to incur bonded indebtedness of the CFD. This Notice contains a brief summary of the proposal, but you are referred to the City Council's Resolution of Intention to Form a Community Facilities District and Levy a Special Tax (No. 18- , adopted , 2018) and its Resolution of Intention to Incur Bonded Indebtedness (No. 18- , adopted , 2018) for details of the proposal. The proposal is to subject the property within the CFD to a special tax which will be used to finance costs of public infrastructure necessary or incidental to new . development in the City, particularly as relates to the development of the real property within the City generally referred to as the subject of Residential Planned Development Permit 2016-01, to facilitate the acquisition and construction of public facilities authorized to be financed by the CFD. The special tax will also be used to pay principal and interest on bonds issued for the purposes of the CFD, and will expire when the bonds are retired and all eligible facilities are financed. Additional details on how the proceeds of the special taxes and the bonds will be used are set forth in the resolutions referred to in the preceding paragraph, which are incorporated by this reference herein. A map showing the land proposed to be included in the CFD is on file with the City Clerk. The proposal also includes authority to issue up to $25,000,000 in bonds to be repaid-by the special tax. Neither the City of Moorpark nor any person outside the CFD has any liability for the special tax or the bonds. The security for the bonds is limited to the property subject to the special tax within the CFD. In order to confer the authority upon the City Council of the City of Moorpark to levy the special tax and to issue the bonds, a public hearing must be held on the proposal, then the City Council will decide whether to form the CFD, and finally the qualified electors within the CFD must approve the proposal by a two-thirds vote. Where the CFD is uninhabited (as is the case here) the qualified electors are, pursuant to law, the owners of property within the CFD. 58 Resolution No. 2018- Page 24 This is the notice of the public hearing. The public hearing will be held during the City Council meeting on Wednesday, February 21, 2018, at 6:30 p.m., at the City of Moorpark Civic Center Council Chambers located at 799 Moorpark Avenue, Moorpark, California 93021. At the hearing, the testimony of all interested persons or potential special taxpayers for or against the formation of the CFD, the authorization to levy the special tax, and the authorization to issue the bonds will be heard. If written protests against the proposed CFD are delivered to the City Clerk at or before the time set for the hearing by either registered voters residing within, or the owners of property within, the proposed CFD, they will be counted toward a possible majority protest. Such protests by a majority of the registered voters residing within the CFD or by the owners of a majority of the land area within the CFD which is or will be subject to the special tax, if not withdrawn prior to the close of the hearing so as to reduce the value of the protests to less than a majority, will require the proposed CFD to be eliminated from immediate consideration, and prevent its being included in a subsequent proceedings for at least one year. - If the Council, after the public hearing, determines that a majority protest under Section 53324 of the California Government Code was not made at the hearing, the Council may conduct an election by mailed or hand-delivered ballot to levy a special tax. Questions should be directed to the undersigned, telephone (805) 517-6223. Dated: , 2018 /s/ Maureen Benson, City Clerk City of Moorpark 59 RESOLUTION NO. 2018- A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK TO INCUR BONDED INDEBTEDNESS TO FINANCE THE ACQUISITION AND CONSTRUCTION OF CERTAIN PUBLIC FACILITIES IN AND FOR COMMUNITY FACILITIES DISTRICT NO. 2018-1 (PACIFIC ARROYO) WHEREAS, the City Council (the "Council") of the City of Moorpark (the "City") has this date adopted its Resolution of Intention to Form a Community Facilities District (the "Resolution of Intention"), stating its intention to form the City of Moorpark Community Facilities District No. 2018-1 (Pacific Arroyo) (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, commencing at Section 53311, of the California Government Code (the "Act"), for the purpose of financing certain public improvements, as further provided in that Resolution of Intention; and WHEREAS, in order to finance the costs of the Facilities it is necessary to incur bonded indebtedness on behalf of the CFD. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES RESOLVE AS FOLLOWS: SECTION 1. Bond Necessity. The Council declares and finds that in order to finance the acquisition and construction of public facilities (the "Facilities") described in the Council's Resolution of Intention, captioned "A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK TO FORM A COMMUNITY FACILITIES DISTRICT AND LEVY A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 2018-1 (PACIFIC ARROYO) TO FINANCE THE ACQUISITION AND CONSTRUCTION OF CERTAIN PUBLIC FACILITIES IN AND FOR SUCH COMMUNITY FACILITIES DISTRICT" it is necessary to incur a bonded indebtedness. SECTION 2. Purpose. The purpose for which the proposed bonded indebtedness is to be incurred is to provide the funds necessary to pay for the cost of said Facilities. SECTION 3. Amount. The maximum amount of the proposed bonded indebtedness is $25,000,000, to be issued as bonds in one or more series at such time as the Council deems appropriate. SECTION 4. Term. It is the intention of the Council that any such bonds issued shall be made callable in accordance with the terms of the Act and as more specifically to be set forth in any resolution authorizing issuance of the bonds, and shall be issued in such series and bear interest payable semi-annually or in such other manner as the Council shall determine, at a rate not to exceed the maximum rate of interest as may be 60 Resolution No. 2018- Page 2 authorized by applicable law at the time of sale of such bonds, and shall mature not to exceed 40 years from the date of the issuance thereof. SECTION 5. Effect of Refunding. In the event any series of bonds issued under the authorization is refunded to produce savings meeting the requirement of Section 53362.5 of the Act, all or a portion of the savings achieved through the issuance of refunding bonds may be used to finance Facilities insofar as the savings component provides capacity for bonded indebtedness in excess of that being refunded, and such additional bonded indebtedness shall not reduce and may exceed the amount of bonded indebtedness authorized herein. SECTION 6. Public Hearing. The Council hereby sets Wednesday, February 21, 2018, at 6:30 p.m., at the City of Moorpark Civic Center Council Chambers located at 799 Moorpark Avenue, Moorpark, California 93021, as the time and place for a hearing by the Council on the proposed bond issue. At that time and place any persons interested, including any persons owning property in the CFD, will be heard. SECTION 7. Notice. The City Clerk is hereby directed to cause notice of said public hearing to be given by one-time publication in a newspaper of general circulation in the area of the CFD. The publication of said notice shall be completed at least 7 days before the date herein set for said public hearing. Such notice shall be substantially in the form specified in Section 53346 of the Act and attached as Exhibit C to the Resolution of Intention, with the form summarizing the provisions, hereof hereby specifically approved. SECTION 8. Effective Date. This Resolution shall take effect upon its adoption. SECTION 9. Certification. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be tiled in the book of original Resolutions. PASSED AND ADOPTED this 17th day of January, 2018 Janice S. Parvin, Mayor ATTEST: Maureen Benson, City Clerk 61