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HomeMy WebLinkAboutRES CC 2018 3677 2018 0221 RESOLUTION NO. 2018-3677 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, TO FORM COMMUNITY FACILITIES DISTRICT NO. 2018-1 (PACIFIC ARROYO) WHEREAS, on January 17, 2018, this City Council (the "Council") of the City of Moorpark (the "City") adopted a resolution entitled "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" (the "Resolution of Intention"), stating its intention to form "City of Moorpark Community Facilities District No. 2018-1 (Pacific Arroyo)" (the "CFD"), of the City, 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 with Section 53311, of the California Government Code (the "Act"); and WHEREAS, the Resolution of Intention, describing a map of the proposed boundaries of the CFD and stating the facilities to be provided, the cost of providing such facilities, and the rate and method of apportionment of the special tax to be levied within the CFD to pay the principal and interest on bonds proposed to be issued with respect to the CFD, is on file with the City Clerk and the provisions thereof are incorporated herein by this reference as if fully set forth herein; and WHEREAS, on this date, this City Council held a noticed public hearing as required by the Act and the Resolution of Intention relative to the proposed formation of the CFD; and WHEREAS, at the hearing all interested persons desiring to be heard on all matters pertaining to the formation of the CFD, the facilities to be provided therein and the levy of said special tax were heard and a full and fair hearing was held; and WHEREAS, at the hearing evidence was presented to the Council on said matters before it, including a report caused to be prepared by Willdan Group (the "Report") as to the facilities to be provided through the CFD and the costs thereof, a copy of which is on file with the City Clerk, and made a part of the record of said public hearing; and WHEREAS, written protests with respect to the formation of the CFD, the furnishing of specified types of facilities and the rate and method of apportionment of the special taxes have not been filed with the City Clerk by fifty percent (50%) or more of the registered voters residing within the territory of the CFD or property owners of one-half (1/2) or more of the area of land within the CFD and not exempt from the proposed special tax; and WHEREAS, the special tax proposed to be levied in the CFD to pay for the proposed facilities to be provided therein, as set forth in Exhibit B hereto, has not been eliminated by protest by fifty percent (50%) or more of the registered voters residing Resolution No. 2018-3677 Page 2 within the territory of the CFD or the owners of one-half (1/2) or more of the area of land within the CFD and not exempt from the special tax. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Recitals Correct. The foregoing recitals are true and correct. SECTION 2. No Majority Protest. The proposed special tax to be levied within the CFD has not been precluded by majority protest pursuant to section 53324 of the Act. SECTION 3. Prior Proceedings Valid. All prior proceedings taken by the Council in connection with the establishment of the CFD and the levy of the special tax have been duly considered and are hereby found and determined to be valid and in conformity with the Act. SECTION 4. Name of CFD. The community facilities district designated "City of Moorpark Community Facilities District No. 2018-1 (Pacific Arroyo)" is hereby established pursuant to the Act. SECTION 5. Boundaries of CFD. The boundaries of the CFD, as set forth in the map of the CFD and to be recorded in the Ventura County Recorder's Office on January 30, 2018 in Book 20 at Page 19 as Document No. 20180130-00010485-D of the Book of Maps of Assessment and Community Facilities Districts, are hereby approved, are incorporated herein by reference and shall be the boundaries of the CFD. SECTION 6. Description of 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 in Exhibit A hereto and by this reference incorporated herein (the "Facilities"). SECTION 7. Special Tax. a. Except to the extent that funds are otherwise available to the CFD to pay for the Facilities and/or the principal and interest as it becomes due on bonds of the CFD issued to finance the Facilities, a special tax (the "Special Tax") sufficient to pay the costs thereof, secured by the recordation of a continuing lien against all non-exempt real property in the CFD, is intended to be levied annually within the CFD, and collected in the same manner as ordinary ad valorem property taxes or in such other manner as may be prescribed by the Council or its designee, including direct billing of the affected property owners. b. The proposed rate and method of apportionment of the Special Tax among the parcels of real property within the CFD, in sufficient detail to allow each landowner within the proposed CFD to estimate the maximum amount such owner will have to pay, are shown in Exhibit B attached hereto and hereby incorporated herein. Resolution No. 2018-3677 Page 3 The Special Tax shall not be levied in the CFD after fiscal year 2060-61 except that a Special Tax that was lawfully levied in or before the final tax year and that remains delinquent may be collected in subsequent years. Under no circumstances shall the Special Tax levied against any parcel in the CFD to be used for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within the CFD by more than ten percent (10%). SECTION 8. Increased Demands. It is hereby found and determined that the Facilities are necessary to meet increased demands placed upon local agencies as the result of development occurring in the CFD. SECTION 9. Responsible Official. The Finance Director of the City of Moorpark, 799 Moorpark Avenue, Moorpark, California 93021, 805-517-6249 is the officer of the City who will be responsible for preparing annually a current roll of special tax levy obligations by assessor's parcel number and who will be responsible for estimating future special tax levies pursuant to the Act. SECTION 10. Tax Lien. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code of California, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property in the CFD and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the tax by the City ceases. SECTION 11. Appropriations Limit. In accordance with the Act, the annual appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, of the CFD is hereby preliminarily established at $2,500,000, and said appropriations limit shall be submitted to the voters of the CFD as hereafter provided. The proposition establishing said annual appropriations limit shall become effective if approved by the qualified electors voting thereon and shall be adjusted in accordance with the applicable provisions of the Act. SECTION 12. Election. Pursuant to the provisions of the Act, the proposition of the levy of the special tax and the proposition of the establishment of the appropriations limit specified above shall be submitted to the qualified electors of the CFD at an election. The time, place and conditions of the election shall be as specified by a separate resolution of this City Council. SECTION 13. Effective Date. This Resolution shall take effect upon its adoption. Resolution No. 2018-3677 Page 4 SECTION 14. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original Resolutions. PASSED AND ADOPTED this 21st day of February, 2018. Ja ice S. Parvin, Mayor ATTEST: Maureen Benson, City Clerk •' '• � 440 Jo' Attachments: Exhibit A - List of Authorized Facilities Exhibit B - Rate and Method of Apportionment of Special Tax Resolution No. 2018-3677 Page 5 EXHIBIT A CITY OF MOORPARK COMMUNITY FACILITIES DISTRICT NO. 2018-1 (PACIFIC ARROYO) 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 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 Resolution No. 2018-3677 Page 6 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. Resolution No. 2018-3677 Page 7 EXHIBIT B CITY OF MOORPARK COMMUNITY FACILITIES DISTRICT NO. 2018-1 (PACIFIC ARROYO) 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 feet of 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 Resolution No. 2018-3677 Page 8 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. "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 1st 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 January 30, 2018 in the County Recorder's Office in Book 20, Page 19, of Maps of Assessments and Community Facilities Districts (instrument number 20180130- 00010485-0). "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. Resolution No. 2018-3677 Page 9 "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. "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. Resolution No. 2018-3677 Page 10 "Lot" means a parcel created by a Final Map on which one or more Residential Units can be constructed. "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 the amount 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. Resolution No. 2018-3677 Page 11 "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. Resolution No. 2018-3677 Page 12 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 Assigned Use Land Use Type Square Special Tax Class Footage 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. 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. Resolution No. 2018-3677 Page 13 Table 2 218-19 Assigned Special Tax Rates Zone 2 Land Building Assigned Use Land Use Type Square Special Tax Class Footage 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 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. Resolution No. 2018-3677 Page 14 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; 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; Resolution No. 2018-3677 Page 15 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 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) Resolution No. 2018-3677 Page 16 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: 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 Resolution No. 2018-3677 Page 17 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 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 Resolution No. 2018-3677 Page 18 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 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 Resolution No. 2018-3677 Page 19 been issued may be partially prepaid. The amount of the prepayment shall be calculated as in Section 6.A.; except that a partial prepayment shall be calculated according to the following formula: PP = (PE-A) x F+A 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 with respect 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. 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 Resolution No. 2018-3677 Page 20 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. 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 Resolution No. 2018-3677 Page 21 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. Resolution No. 2018-3677 Page 22 Exhibit A to Rate and Method of Apportionment CFD Boundary Map MAP OF PROPOSED BOUNDARIES OF CITY OF MOORPARK SHEET 10F1 COMMUNITY FACILITIES DISTRICT NO.2018-1 (PACIFIC ARROYO) COUNTY OF VENTURA STATE OF CALIFORNIA FILED IN THE OFFICE OF THE CITY CLERK OF THE CRY OF F, MOORPARK THIS OAY OF 2818 y -- - ---- ----_.. HEREBY THE WOOlS MAP t LOS Angeles Blvd > ri, } THE PROPOSED BOUNDARIES OF THE CIR8OFMOORPARK OO A COMMUNITY 1(pEFICR CITY MOORPARK COUNTY OF VENTURA STOF CALIFOR' , WAS APPROVED NIA BY THE CITY COUNCIL OF THE CITY OF MOORPARK ATA ..♦♦.. REGULAR♦, REGULMEETING THEREOF HELD ON THE 1♦.♦♦♦♦♦..♦ DAY OF 3018.BY ITS RESOLUTION NO .•♦♦♦i•.�.♦♦♦/•♦♦♦� , CITY CLERK ..._. CITU OF MOORPARK �i �iii' FILED THIS DAY OF 2018 AT - 're rr r r THE HOUR OF O'CLOCK_ M,IN BOOKOF MIPS OF _ -' /♦♦ ...♦.♦♦♦ FACLITIES DISTRICTS AND AS NSTRUMENTESSMENT MDCOMMUNITV F \. _ NO AT THE REQUECOUNT RECOROF DER EROFTCITY OF THE IN THE OFFICE VENTURA - CF , A�..........•.♦♦.♦♦♦♦•♦�.1, 4 _ STATE OF CALIFORNIA DER OF THE COUNTY OF VENTURA BY DEPUTY COUNTY�..♦♦.♦♦ COU OF VENTURA rf - LERK j°1, ,�'♦• THE LINES AND DIMENSIONS OF EACH LOT OR PARCEL SHOVN4ON THIS MAP SHALL BE THOSE LINES AND DIMENSIONS AS _ _..., ' SHOWN ON THE VENTURA COUNTYASSESSOR'S MMS FOR THOSE PARCELS LISTED THEY NTURCOUNTYASSESSORS MAPS SHALL GOVERN - /14y0 FOR ALL DETAILS CONCERNING THE LINES AND DIMENSIONS OF l"T SUCH LOTS OR PARCELS MAP REFERENCE I ASSESSOR'S NUMBER [PARCEL NUMBER 1 506-0-030-180 !. 2 I 5060-030-195 LsgInd 3 506-0-030-205 O COMMUNITY FACILITIES DISTRICT BOUNDARY 4 506-0-030-245 5 5060-030-255 Zone 6 5060-050-515 (J 2 -- - 7 506-0-050-525 ILLDN I I,. Resolution No. 2018-3677 Page 23 STATE OF CALIFORNIA ) COUNTY OF VENTURA ) ss. CITY OF MOORPARK ) I, Maureen Benson, City Clerk of the City of Moorpark, California, do hereby certify under penalty of perjury that the foregoing Resolution No. 2018-3677 was adopted by the City Council of the City of Moorpark at a regular meeting held on the 21st day of Feburary, 2018, and that the same was adopted by the following vote: AYES: Councilmembers Mikos, Pollock, Simons, Van Dam, and Mayor Parvin NOES: None ABSENT: None ABSTAIN: None WITNESS my hand and the official seal of said City this 27th day of February, 2018. Maureen Benson, City Clerk (seal) 4.?:•000111117&.e): etiliAl Aeo