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HomeMy WebLinkAboutAGENDA REPORT 2018 0221 CCSA REG ITEM 08B ITEM 8.B. MOORPARK CITY COUNCIL CITY OF MOORPARK,CALIFORNIA City Council fleeting AGENDA REPORT a a i/ ACTION:/ ! �l [� L . TO: Honorable City Council 0708--•' 1�-Zoite 3G 75�,® Aol 7L „A 0/8— 3 L 81J 3ot. 1a4_ d _®� 'frail. FROM: Ron Ahlers, Finance Director DATE: February 9, 2018 (City Council Meeting of February 21, 2018) SUBJECT: Consider Resolution to Form City of Moorpark Community Facilities District 2018-1 (CFD 2018-1) Pacific Arroyo, Resolution Determining Necessity to Incur Bonded Indebtedness, Resolution Calling Special Election, Resolution Declaring Results of Special Election, and Ordinance Levying Special Taxes within CFD 2018-1 SUMMARY The Development Agreement (Agreement) with Pacific Communities Builder, Inc. allows them to request the City to form 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. 2018-1" (the "CFD No. 2018-1"). The City Council will consider documents prepared by City staff and consultants that the Council may adopt to form CFD No. 2018-1, 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. On January 21, 2017, the City Council passed a RESOLUTION OF INTENTION, which 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. That resolution set February 21, 2018 as the date for the required public hearing on CFD 2018-1, Pacific Arroyo. 16 Honorable City Council February 21, 2018 Page 2 On January 21, 2018, the City Council also passed a RESOLUTION OF INTENTION TO INCUR BONDED INDEBTEDNESS, which 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. That resolution set February 21, 2018 at 6:30pm as the date for the required hearing on the bond issuance. The notice of public hearing was published in the Ventura County Star on February 12, 2018. Attachment 1 is the final CFD 2018-1 Pacific Arroyo CFD Report. This report details the description and boundaries of the CFD, the description of the facilities, the cost estimates and the Rate and Method of Apportionment along with the boundary map and a preliminary budget. The following two tables were displayed in the report on January 21, 2018, and have no changes from that report. The special tax for Zone 1 is: 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 s 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. 17 Honorable City Council February 21, 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. Attachment 2 are the signed certificates regarding ownership within the district by the three property owners. Attachment 3 are the signed Waiver and Consent forms, shortening time periods and waiving various requirements for conducting mail-ballot election by the three property owners within the district. Attachment 4 is the RESOLUTION TO FORM COMMUNITY FACILITIES DISTRICT NO. 2018-1 (PACIFIC ARROYO). This resolution establishes the official name of the district, sets the boundary, list of facilities, special tax, appropriation limit and other requirements in order to form CFD 2018-1. Attachment 5 is the RESOLUTION DETERMINING NECESSITY TO INCUR BONDED INDEBTEDNESS. This resolution establishes the maximum debt at $25 million for a term not to exceed forty years. Attachment 6 is the RESOLUTION CALLING SPECIAL ELECTION. This calls the special election of the property owners within CFD 2018-1. Attachment 7 is the RESOLUTION DECLARING THE RESULTS OF THE SPECIAL ELECTION AND DIRECTING RECORDING OF NOTICE OF SPECIAL TAX LIEN. The City Clerk has received the sealed ballots and will open them to report the results of the special election. 18 Honorable City Council February 21, 2018 Page 4 Attachment 8 is the ORDINANCE LEVYING SPECIAL TAXES. The ordinance authorizes the levy of the special tax within CFD 2018-1 and directs the Finance Director to determine the special tax and amount each year. Attachment 9 is the suggested script for the Mayor to read for the public hearing. FISCAL IMPACT None. STAFF RECOMMENDATION 1. Open the public hearing, accept public testimonies and close the public hearing. 2. Adopt Resolution No. 2018- to Form CFD 2018-1, Resolution No. 2018- Determining Necessity to Incur Bonded Indebtedness and Resolution No. 2018- Calling Special Election. 3. Adopt Resolution No. 2018- Declaring Results of Special Election. 4. Introduce Ordinance No. for first reading, waive full reading, and place the Ordinance on the Agenda for the March 7, 2018 regular meeting for purposes of providing second reading and adoption of the Ordinance. Attachments: 1. CFD 2018-1 Pacific Arroyo CFD Report 2. Certificate Regarding Ownership 3. Waiver and Consent forms 4. Resolution No. 2018- to Form CFD 2018-1 5. Resolution No. 2018- Determining Necessity to Incur Bonded Indebtedness 6. Resolution No. 2018- Calling Special Election 7. Resolution No. 2018- Declaring Results of Special Election 8. Ordinance No. Levying Special Taxes within CFD 2018-1 9. Suggested Script for Mayor to read for the public hearing 19 Attachment 1 /1/61ffrfrad CALIFORNIA f L#calvbtlitisgoa City of Moorpark Community Facilities District No. 2018-1 (Pacific Arroyo) CFD Report 27368 Via Industria Suite 200 Temecula, CA 92590 T 951 587 3500 1800.755.6864 F 951.587.3510 www.willdan.com/financial *"WILLDAN Financial Services 20 TABLE OF CONTENTS TABLE OF CONTENTS 1 INTRODUCTION 2 II. GENERAL DESCRIPTION & BOUNDARIES OF CFD No. 2018-1 3 III. DESCRIPTION OF FACILITIES 4 - 5 IV. COST ESTIMATES 6 V. RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX 7 EXHIBIT A (BOUNDARY MAP) EXHIBIT B (PRELIMINARY CFD BUDGET) EXHIBIT C (RATE AND METHOD OF APPORTIONMENT) "WILLDAN 1 Fnancal Ser,ces 21 i. Introduction WHEREAS, the City Council of the City of Moorpark (hereinafter referred to as the "City Council"), in the State of California, did, pursuant to the terms and provisions of Chapter 2.5 of Part 1, of Division 2, of Title 5, commencing at Section 53311 of the Government Code of the State of California, as amended (the "Act"), adopted a Resolution of Intention for the proposed formation of City of Moorpark Community Facilities District No. 2018-1 (Pacific Arroyo) ("CFD No. 2018-1"). WHEREAS, this Community Facilities District Report ("Report") is being provided to the City Council and generally contains the following: 1. A brief description of Community Facilities District No. 2018-1 (Pacific Arroyo) of the City of Moorpark ("CFD NO. 2018-1"); 2. A brief description of the Facilities required at the time of formation to meet the needs of CFD No. 2018-1. 3. A brief description of the Boundaries of CFD 2018-1; and 4. An estimate of the cost of financing the bonds used to pay for the Facilities, including all costs associated with formation of the District, issuance of bonds, determination of the amount of any special taxes, collection of any special taxes, or costs otherwise incurred in order to carry out the authorized purposes of the City with respect to the District, and any other incidental expenses to be paid through the proposed financing. For particulars, reference is made to the Resolution of Intention, Resolution No. 2018- 3662 as previously approved. All capitalized terms not defined herein are defined in the Rate and Method of Apportionment of Special Tax section (Exhibits C) of this report. NOW THEREFORE Willdan Financial Services, the appointed responsible firm directed to prepare the Report, pursuant to the provisions of the Code, does hereby submit the following: WWILLDANf 2 Financial Services 22 II. General Description & Boundaries of CFD No. 2018-1 A description of the exterior boundaries of the territory proposed for inclusion in CFD No. 2018-1, including properties and parcels of land proposed to be subject to the levy of a Special Tax by CFD No. 2018-1, is shown on the boundary map designated as "MAP OF PROPOSED BOUNDARIES OF CITY OF MOORPARK COMMUNITY FACILITIES DISTRICT 2018-1 (PACIFIC ARROYO)", which is on file in the office of the City Clerk of the City of Moorpark and was recorded with the County Recorder of the County of Venture on January 30th, 2018 in Book 20 of Maps of Assessment and Community Facilities Districts at page 19 and as Instrument Number 20180130-00010485-0. A copy of the map is attached hereto as Exhibit A and hereby incorporated by reference. WWI LLDAN I 3 Financial Services 23 Ill. Description of Facilities The General Description of the Facilities that may be acquired or constructed is as follows: • 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 W/WILLDAN I 4 Financial Services 24 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 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. This description of the public capital facilities is general in nature. The final nature and location of improvements and facilities will be determined upon the preparation of final plans and specifications. The final plans and specifications may show substitutes in lieu of, or modifications to, proposed work. Any such substitution shall not be a change or modification in the proceedings as long as the facilities provide a service substantially similar to that as set forth in the Report. WWI LLDAN 1 5 Financial Services 25 IV. Cost Estimates The proceeds of CFD No. 2018-1 will be used to fund approximately $16.1 million in eligible facilities and fees. For cost particulars, reference is made to Exhibit B of this report. WWI LLDAN 6 Financial Services 26 V. Rate and Method of Apportionment of Special Tax The Rate and Method of Apportionment (RMA) provide sufficient information to allow a property owner within CFD No. 2018-1 to estimate the Maximum Special Tax for his or her property. It also includes method of prepayment in full or prepayment in part and the procedure for prepayments. For particulars on the rate and method of apportionment, reference is made to Exhibit C of this report. WWI LLDAN I 7 Financial Services 27 EXHIBIT A Boundary Map WILal SerwcesLDAN I A-1 Financ 28 • MAP OF PROPOSED BOUNDARIES OF CITY OF MOORPARK SHEET or 1 COMMUNITY FACILITIES DISTRICT NO.2018-1 I (PACIFIC ARROYO) elvT -.'.:E-I- STA SOF CU1 CRI.,a • FILED IN THEOFFK:k CF rHk cll.c kKUF I-Ik el:YUI- S M MLIURPAKK 1#S]OM'DAY OF ..25,-,A.,-,..25,-,A.,-, 21119. ,N. 'A I QI 1 HERESY CERTIFY THAT THE WITHIN MAP SHOWING THE PROPOSED BUNDA IES OF THE CITYOF MOORPARK E LOS Angeles BlvdN 5 COMM ON TYTACILITES DIS-RICT NO.G3-1-1 TACIFC ARROY01 1 CITY OF MOORPARK COJNTY OF VENTURA.STATE 0=CALIFORNIA • -- WAS APPROVED ' BY THE CITY COUNCIL OF THE CO,OF MOORPARKATA REGULAR MEETNC THEREOF B oN THE L I .•`� .... •_ DAY OF erv,A.y 2015 BY ITS R SOLO ION /: AX,-' KO Ants ALLx / 7 ' /' /CA / CIV.LR. :4* C TY,F M4GRPANK // /_ . FILED THIS S±OAY OF pAl'j�' 2015,AT j / /` THE MClJIt OF).gl 0CLOCK M,NBOCK ^:.L%_, PAGE 12OF MAPS OFASSSAIENTAND COMMUNITY \ X \i' FHCLR.EBCISTRICTSAYDASIN"-R'JMENT / / ,•:•� No SCI SoI,r.-..S p / / / X AT THE REQUEST OF THE CITY FY: CF MOOR,ARK IN THE OCE / ,/`� OF THECOUNTY RECORD-RO?THE COUNTY OFVENTU RA ' STATE OF OAL`FORNIA - j / // / / B•3EPJ-Y -- /!� -.j • COLN'Y OfCOVITY CEY�VRo_ERK - // / // // THE LINES AND DINERS C'EACH LOT-CR PARCEL SHDAN / ON THIS MAP SHALL d_T C LNF AND DMENMLNS As '� �9SHOWN CN THE YENTLISl COUNTY ASSE 5^H'S MAPS SOU FOR THORP PARTFI S 051E] Rr01 11vENTURA COUN'Y ASSESSORS MAPS ILALLGCTCRN �, �tOVO FORAM.DETAILS OOI,0/A MO TIE_WES.SC OIN.ENSIONS Or suCH LOTS CR PARCELS MAP REFERENCE ASSESSOR'S • • %, NUMBER PARCEL NUMBER 1 5O6-0-0304H0 - 2 506-0.030•195 UPIlend 3 506 o O3o-z05 =COMMUNITY FAC:'L.TIES DISTRICT BOUNDARY 4 5 0-030-2455 s 5136-0E.30-355 Er 2 i sonoasa525 ll WIosSSerwices WWI LLDAN A-2 FInaYcIBI SENILES 29 EXHIBIT B CFD 2018-1 Preliminary Budget */WILLDAN B_1 Fnancial Services 30 Exhibit B Pacific Communities-Pacific Arroyo Proposed City of Moorpark CFD 2018-1 Preliminary Budget Total Units 284 Average Per Description Unit Total DIFs Included in Development Agreement Area of Contribution(Los Angeles Avenue) 197 Units (a) $ 6.023 $ 1,710.551 Area of Contribution(Los Angeles Avenue)87 Units Paid in 2001 (a) 849 241.135 Citywide Traffic Mitigation Fund (b) 12,500 3,550.000 Air Quality Fee (b) 1,709 485,356 Art in Public Places (c) 1,385 393,272 Park/Quimby Fee (b) 10,500 2,982.000 Community Services (b) 2,700 766.800 Development Agreement Fee (b) 9.200 2.612.800 Subtotal S 44,866 S 12,741,914 Improvements Los Angeles Avenue Improvements Contribution (d) $ 7,095 $ 2,015,114 Total Facilities Included in DA $ 51,961 $ 14,757,028 DIFs Not Included in Development Agreement Fire Protection Facilities Fee S 979 $ 278.167 Police Facilities Fee 1,027 291.668 Library Facilities Fee 926 262,893 Subtotal $ 2.932 $ 832.728 City CFD Fee (e) S 2,000 $ 568,000 Total Facilities $ 56,893 $ 16,157,756 (a)Per Section 6 5 of the Development Agreement the 1st 87 units were prepaid Fee only applies to the remaining 197 units (b)Based on draft Development Agreement (c)Per City Fee Schedule fee equals 1%of total building value(i e 1%times estimated vertical construction costs of 565 per sq ft 'avg sq ft of 2.130 per unit (d)Developer previously paid 5100 000 of this fee Only Si 915 114 is still due but the full amount would be eligible for reimbursement (e)Fee of 52.000 per unit charged by the City of Moorpark as condition to form the CFD WWI LLDAN B_2 Financial Services 31 EXHIBIT C Rate and Method of Apportionment �W I LLDAN 0-1 3 2 Financial Services • 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 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 WWI LLDAN C-2 3 3 Financial Services Special Tax is being levied, and (ii)that have not been issued a Building Permit on or prior to the May 1 s`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 30th 2018 in the County Recorder's Office in Book 20, Pages 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. "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, WWI LLDAN 3 4 Financial Services C-3 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. "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. WWI LLDAN Financial Services C-4 3 5 "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. "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. WWI LLDAN Financial Services C-5 3 6 "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. 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 Footage Special Tax Class 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 WWILLDAN Financ al Services I c-6 3 7 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. Table 2 218-19 Assigned Special Tax Rates Zone 2 Land Use Land Use Type Building Assigned Class Square 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 WWI LLDAN Financial Services C-7 38 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. 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; WWI LLDAN 39 Financ�ai Services C-8 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 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) WWI LLDAN C-9 • 40 Financial Services 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: 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, Vt(FWILLDAN C-10 41 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 balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero. WWI LLDAN Finan cal Services C-11 42 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 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 WWI LLDAN Financial Services C-12 43 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 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 WWI LLDAN Financia!Services , C-13 4 4 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 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. WWI LLDAN C-14 45 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. WWI LLDAN C 15 46 Financial Services Exhibit A CFD Boundary Map A-1 47 I MAP OF PROPOSED BOUNDARIES OF CITY OF MOORPARK 1 SHEET 1 OF, COMMUNITY FACILITIES DISTRICT NO.2018-1 (PACIFIC ARROYO) COUNTY OF VENTURA STATE OF CALIFORNIA [n N FILED IN THE OFFICE OF THE CITY CLERK OF THE CRY OF MOORPARK.THIS DAY OF 2313. N 1V E tv - - I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING THE PROPOSED BOUNDARIES OF THE CITY OF MOORPARK E Los Angeles Blvd 5 COMMUNITY FACILITIES DISTRICT NO2318-1(PACIFIC ARROYO). CITY OF MOORPARK.COUNTY OF VENTURA STATE OF CALIFORNIA, Pr jr7, OAT OF ED ..�..-.-♦...,�♦-.�� BY THE CITY COUNCIL OF THE CITY OF MOORPARK ATA - REGULAR MEETING THEREOF,HELD ON THE � - - - - --.- -,c, - -,c, DAY OF ,2018.BY ITS RESOLUTION .♦♦•♦♦♦♦♦♦.�♦•..♦♦ CITY CLERK F♦.♦♦.♦♦41. .�♦_.,p� FILED THIS CITY OF MOORPARK Y OF .♦♦.♦♦♦.♦♦♦♦.....__- Lam_ THE HOUR OF DAO'CLOCK .M.,IN BOOK IB,AT PAGE OF_ •♦♦♦♦♦•♦•♦♦♦♦••♦♦•♦♦••�♦• II�� AESSMENT AND COMMUNITY TRUMENT TILITIES THEEOUETSTIOFI,THIEIDCRY S OF AS OF MOORPARK IN THE OFFICE o .:♦:.:♦:♦:♦:♦::♦:.:♦:♦:♦: OF THE F CALIF RECORDER OF THE COUNTY OF VENTURA , .4.......„ 4,4 .♦♦♦, STATE OF CALIFORNIA- . TA �iryF:-R-.-._•`•'♦.:.♦.♦.♦. CBY DEPUTY OUNTY RECORDER/CLERK COUNTY OF VENTURA ____-- ,♦•'••: [2:: THELINES M APS DIMENSIONS BE SOF EACH AND DIMENSIONS PARCEL SHOWN ON/ J - - FOR THOSE THE ARCVENTURA LISTED NTVASSESSOR'S MAPS FOR TM06E PARCELS LISTED THE VENTURA COUNTY ASSESSOR'S MAPS SHALL GOVERN FOR ALL DETAILS CONCERNING THE LINES AND DIMENSIONS OF SUCH LOTS OR PARCELS MAP REFERENCE ASSESSOR'S NUMBER PARCELNUMBER 1 506-0-030-180 __ 2 506-0.036195 Legend ____ -_ 3 506-0-030-205 QCOMMUNITY FACILITIES DISTRICT BOUNDARY 4 506-0-030-245 ZOR. 5 506-0-030-255 [ Al 6 506-6056515 WWI LLDAN 2 7 506-6050-525 FiEencMl Services A-2 • 48 Attachment 2 CERTIFICATE REGARDING OWNERSHIP WITHIN THE DISTRICT (Moorpark Homes, LLC) COMMUNITY FACILITIES DISTRICT NO 2018-1 (PACIFIC ARROYO) CITY OF MOORPARK VENTURA COUNTY, CALIFORNIA The undersigned is the authorized representative of Moorpark Homes, LLC, the owner (the "Owner") of the below referenced real property (the "Property") comprising 12.16 acres within the City of Moorpark (the "City") which is proposed to be included in Community Facilities District No. 2018-1 (Pacific Arroyo), City of Moorpark, Ventura County, California (the "District"), and which will be subject to a special tax with respect to the District. Assessor's Name and Address No. of Parcel No. of Property Owner Acres 506-0-030-205 Moorpark Homes, LLC 12.16 The undersigned acknowledges that at the request of the Owner the City is undertaking proceedings for the formation of the District and the levy_of a special tax on the property included therein, which proceedings include a landowner election The undersigned hereby certifies: I am authorized to act on behalf of the Owner and am familiar with the boundary map of the District. I also have knowledge, from my records, as to the ownership of the Property, which is within the area proposed to be included in the District. I have personally inspected the land proposed to be included in the District and I certify there are no residential dwellings on the above property. I certify the foregoing to be true and correct as of F,e4,_0 , 2018 MOORPARK HOMES, LLC, a California limited liability company By- Pacific Communities Builder, Inc., Manager By- Nelson yNelson g, President 49 CERTIFICATE REGARDING OWNERSHIP WITHIN THE DISTRICT (MP Group, LLC) COMMUNITY FACILITIES DISTRICT NO. 2018-1 (PACIFIC ARROYO) CITY OF MOORPARK VENTURA COUNTY, CALIFORNIA . The undersigned is the authorized representative of MP Group, LLC, the owner (the "Owner") of the below referenced real property (the "Property") comprising 22.05 acres within the City of Moorpark (the "City") which is proposed to be included in Community Facilities District No 2018-1 (Pacific Arroyo), City of Moorpark, Ventura County, California (the "District"), and which will be subject to a special tax with respect to the District. Assessor's Name and Address No of Parcel No. of Property Owner Acres 506-0-030-180 MP Group, LLC 3 01 506-0-030-245 MP Group, LLC 9.13 506-0-030-255 MP Group, LLC 9 91 The undersigned acknowledges that at the request of the Owner the City is undertaking proceedings for the formation of the District and the levy of a special tax on the property included therein, which proceedings include a landowner election. The undersigned hereby certifies: I am authorized to act on behalf of the Owner and am familiar with the boundary map of the District. I also have knowledge, from my records, as to the ownership of the Property, which is within the area proposed to be included in the District. I have personally inspected the land proposed to be included in the District and I certify there are no residential dwellings on the above property. I certify the foregoing to be true and correct as of ,c)— 6 , 2018 MP GROUP, LLC, a California limited liability company By. Pacific Housing, LLC, Manager By: Christine Chung, Manager 50 CERTIFICATE REGARDING OWNERSHIP WITHIN THE DISTRICT (CLP Investment, LLC) COMMUNITY FACILITIES DISTRICT NO 2018-1 (PACIFIC ARROYO) CITY OF MOORPARK VENTURA COUNTY, CALIFORNIA The undersigned is the authorized representative of CLP Investment, LLC, the owner (the "Owner") of the below referenced real property (the "Property") comprising 6.50 acres within the City of Moorpark (the "City") which is proposed to be included in Community Facilities District No. 2018-1 (Pacific Arroyo), City of Moorpark, Ventura County, California (the "District"), and which will be subject to a special tax with respect to the District. Assessor's Name and Address No. of Parcel No. of Property Owner Acres 506-0-050-515 CLP Investment, LLC 1.64 506-0-050-525 CLP Investment, LLC 4 86 The undersigned acknowledges that at the request of the Owner the City is undertaking proceedings for the formation of the District and the levy of a special tax on the property included therein, which proceedings include a landowner election. The undersigned hereby certifies: I am authorized to act•on behalf of the Owner and am familiar with the boundary map of the District. I also have knowledge, from my records, as to the ownership of the Property, which is within the area proposed to be included in the District. I have personally inspected the land proposed to be included in the District and I certify there are no residential dwellings on the above property. I certify the foregoing to be true and correct as of 0-- b , 2018. CLP INVESTMENT, LLC, a California limited liability company Christine Chung, Managed"- 51 Attachment 3 WAIVER AND CONSENT SHORTENING TIME PERIODS AND WAIVING VARIOUS REQUIREMENTS FOR CONDUCTING MAILED-BALLOT ELECTION COMMUNITY FACILITIES DISTRICT NO.2018-1 (PACIFIC ARROYO) CITY OF MOORPARK VENTURA COUNTY, CALIFORNIA The undersigned is the authorized representative of CLP INVESTMENT, LLC, the owner (the "Owner") of the below referenced real property within the City of Moorpark (the "City") which is proposed to be included in Community Facilities District No. 2018-1 (Pacific Arroyo), City of Moorpark, Ventura County, California (the "District"), and which will be subject to a special tax with respect to the District, and the City is undertaking proceedings for the formation of the District and the levy of a special tax on the property included therein, which proceedings include a landowner election Assessor's Name and Address No. of Parcel No. of Property Owner Acres 506-0-050-515 CLP Investment, LLC 1.64 506-0-050-525 CLP Investment, LLC 4.86 The undersigned, on behalf of the Owner, hereby requests that the District be formed, that the special tax be levied, that bonds be issued, and that the property proposed to be included within the District as shown on the proposed boundary map referred to in the Resolution of Intention of the City Council of the City of Moorpark to Form a Community Facilities District and Levy a Special Tax adopted by the City Council on January 17, 2018 (the "Resolution of Intention") be included within the District. In that connection, the undersigned certifies that he/she is legally entitled and authorized to cast the ballots for the above-referenced Owner attributable to the above-referenced parcels in the landowner, mailed-ballot election to be conducted within the District to determine, among other things, that the District be formed, that the special tax be levied, that bonds be issued, and that the property proposed to be included within the District as shown on the proposed boundary map referred to in the Resolution of Intention. The undersigned, on behalf of the above-referenced Owner, hereby waives any and all minimum time periods relative to the election pursuant to Government Code Section 53326(a). The undersigned, on behalf of the above-referenced Owner, hereby waives the preparation and distribution of an impartial analysis of the ballot measure, as well as arguments in favor and against, under the authority of Government Code Section 53327(b). The undersigned, on behalf of the above-referenced Owner, hereby waives the requirement to publish notice of the election under Government Code Section 53352. The undersigned, on behalf of the above-referenced Owner, hereby waives the requirements regarding the time to mail ballots to the qualified electors under Elections Code Section 4101, and agrees that the representative of the above-referenced Owner may accept either mailed service or personal service of the ballots. 52 The undersigned, on behalf of the above-referenced Owner, hereby waives the requirements regarding identification envelopes for the return of mailed ballots contained in Government Code Section 53327.5. Further, the undersigned, on behalf of the above-referenced Owner, hereby waives any and all defects in notice or procedure in the conduct of the election, whether known or unknown (except the right to vote and to have the ballots fairly counted), and states that the election is being expedited, pursuant to this waiver and consent, at the particular instance and request of the above-referenced Owner I declare, under penalty of perjury, under the laws of the State of California, that the foregoing is true and correct and that this declaration is executed on the date set forth below. Date: — , 2018 CLP INVESTMENT, LLC, a California limited liability company J /J� By- Christine YChristine Chung, Manager dr- 53 WAIVER AND CONSENT SHORTENING TIME PERIODS AND WAIVING VARIOUS REQUIREMENTS FOR CONDUCTING MAILED-BALLOT ELECTION COMMUNITY FACILITIES DISTRICT NO. 2018-1 (PACIFIC ARROYO) CITY OF MOORPARK VENTURA COUNTY, CALIFORNIA The undersigned is the authorized representative of MOORPARK HOMES, LLC, the owner (the "Owner") of the below referenced real property within the City of Moorpark (the "City") which is proposed to be included in Community Facilities District No. 2018-1 (Pacific Arroyo), City of Moorpark, Ventura County, California (the "District"), and which will be subject to a special tax with respect to the District, and the City is undertaking proceedings for the formation of the District and the levy of a special tax on the property included therein, which proceedings include a landowner election. Assessor's Name and Address No. of Parcel No. of Property Owner Acres 506-0-030-205 Moorpark Homes, LLC 12.16 The undersigned, on behalf of the Owner, hereby requests that the District be formed, that the special tax be levied, that bonds be issued, and that the property proposed to be included within the District as shown on the proposed boundary map referred to in the Resolution of Intention of the City Council of the City of Moorpark to Form a Community Facilities District and Levy a Special Tax adopted by the City Council on January 17, 2018 (the "Resolution of Intention") be included within the District. In that connection, the undersigned certifies that he/she is legally entitled and authorized to cast the ballots for the above-referenced Owner attributable to the above-referenced parcels in the landowner, mailed-ballot election to be conducted within the District to determine, among other things, that the District be formed, that the special tax be levied, that bonds be issued, and that the property proposed to be included within the District as shown on the proposed boundary map referred to in the Resolution of Intention. The undersigned, on behalf of the above-referenced Owner, hereby waives any and all minimum time periods relative to the election pursuant to Government Code Section 53326(a). The undersigned, on behalf of the above-referenced Owner, hereby waives the preparation and distribution of an impartial analysis of the ballot measure, as well as arguments in favor and against, under the authority of Government Code Section 53327(b) The undersigned, on behalf of the above-referenced Owner, hereby waives the requirement to publish notice of the election under Government Code Section 53352. The undersigned, on behalf of the above-referenced Owner, hereby waives the requirements regarding the time to mail ballots to the qualified electors under Elections Code Section 4101, and agrees that the representative of the above-referenced Owner may accept either mailed service or personal service of the ballots. 54 The undersigned, on behalf of the above-referenced Owner, hereby waives the requirements regarding identification envelopes for the return of mailed ballots contained in Government Code Section 53327.5 Further, the underaigned, on behalf of the above-referenced Owner, hereby waives any and all defects in notice or procedure in the conduct of the election, whether known or unknown (except the right to vote and to have the ballots fairly uountad), and states that the election is being expedited, pursuant to this waiver and conaant, at the particular instance and request of the above-referenced Owner I dedona, under penalty of perjury, under the laws of the State of California, that the foregoing is true and correct and that this declaration is executed on the date set forth below. Date: \/��Y���� � n , 2018 �-�' MOORPARK HOMES, LLC, a California limited liability company By: Pacific Communities Builder, Inc., Manager - _ ' 8v Nelson Chun., President • 5 5 WAIVER AND CONSENT SHORTENING TIME PERIODS AND WAIVING VARIOUS REQUIREMENTS FOR CONDUCTING MAILED-BALLOT ELECTION COMMUNITY FACILITIES DISTRICT NO. 2018-1 (PACIFIC ARROYO) CITY OF MOORPARK VENTURA COUNTY, CALIFORNIA The undersigned is the authorized representative of MP GROUP, LLC, the owner (the "Owner") of the below referenced real property within the City of Moorpark (the "City") which is proposed to be included in Community Facilities District No. 2018-1 (Pacific Arroyo), City of Moorpark, Ventura County, California (the "District"), and which will be subject to a special tax with respect to the District, and the City is undertaking proceedings for the formation of the District and the levy of aspecial tax on the property included therein, which proceedings include a landowner election. Assessor's Name and Address No. of Parcel No. of Property Owner Acres 506-0-030-180 MP Group, LW 3.01 506-0-030-245 MP Group, LLC 9.13 506-0-030-255 MP Group, LLC 9.91 The undersigned, on behalf of the Owner, hereby requests that the District be formed, that the special tax be levied, that bonds be issued, and that the property proposed to be included within the District as shown on the proposed boundary map referred to in the Resolution of Intention of the City Council of the City of Moorpark to Form a Community Facilities District and Levy a Special Tax adopted by the City Council on January 17, 2018 (the "Resolution of Intention") be included within the District. In that connection, the undersigned certifies that he/she is legally entitled and authorized to cast the ballots for the above-referenced Owner attributable to the above-referenced parcels in the landowner, mailed-ballot election to be conducted within the District to determine, among other things, that the District be formed, that the special tax be levied, that bonds be issued, and that the property proposed to be included within the District as shown on the proposed boundary map referred to in the Resolution of Intention. The undersigned, on behalf of the above-referenced Owner, hereby waives any and all minimum time periods relative to the election pursuant to Government Code Section 53326(a) The undersigned, on behalf of the above-referenced Owner, hereby waives the preparation and distribution of an impartial analysis of the ballot measure, as well as arguments in favor and against, under the authority of Government Code Section 53327(b). The undersigned, on behalf of the above-referenced Owner, hereby waives the requirement to publish notice of the election under Government Code Section 53352. The undersigned, on behalf of the above-referenced Owner, hereby waives the requirements regarding the time to mail ballots to the qualified electors under Elections Code 56 Section 4101, and agrees that the representative of the above-referenced Owner may accept either mailed service or personal service of the ballots The undersigned, on behalf of the above-referenced Owner, hereby waives the requirements regarding identification envelopes for the return of mailed ballots contained in Government Code Section 53327 5 Further, the undersigned, on behalf of the above-referenced Owner, hereby waives any and all defects in notice or procedure in the conduct of the election, whether known or unknown (except the right to vote and to have the ballots fairly counted), and states that the election is being expedited, pursuant to this waiver and consent, at the particular instance and request of the above-referenced Owner I declare, under penalty of perjury, under the laws of the State of California, that the foregoing is true and correct and that this declaration is executed on the date set forth below Date: % ` 6 , 2018 MP GROUP, LLC, a California limited liability company By. Pacific Housing, LLC, Manager By. Christine Chung, Manager 6 57 Attachment 4 RESOLUTION NO. 2018- 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 58 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 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. 2 59 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. 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. 3 60 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. Janice S. Parvin, Mayor ATTEST: Maureen Benson, City Clerk Attachments: Exhibit A - List of Authorized Facilities Exhibit B - Rate and Method of Apportionment of Special Tax 4 61 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, Exhibit A Page 1 6 2 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. Exhibit A Page 2 6 3 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 Exhibit B Page 1 6 4 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. "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 , 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. Exhibit B Page 2 6 5 "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. "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 Exhibit B Page 3 6 6 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. "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 os more Residential Units. Exhibit B Page 4 6 7 "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. "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 Exhibit B Page 5 6 8 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. 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. Exhibit B Page 6 69 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 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. Exhibit B Page 7 7 0 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; Exhibit B Page 8 71 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) Exhibit B Page 9 72 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, Exhibit B Page 10 7 3 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 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 Exhibit B Page 11 7 4 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 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. Exhibit B Page 12 7 5 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 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. Exhibit B Page 13 7 6 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. Exhibit B Page 14 7 7 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. Exhibit B Page 15 7 8 Exhibit A to Rate and Method of Apportionment CFD Boundary Map Exhibit B Page 16 79 MAP OF PROPOSED BOUNDARIES OF CITY OF MOORPARKEET, OF I COMMUNITY FACILITIES DISTRICT NO.2018-1 (PACIFIC ARROYO) COUNTY OF VENTURA STATE OF CALIFORNIA yr W E FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF — 1 MOORPARK.THIS pAY OF ZS1B. _I — HEREBY CERTIFY THAT THE WITHIN MAP SHOWING Angeles PROPOSED BOUNDARIES OF THE CITY OF MOORPARK E Los® Blvd COMMUNITY FACILITIES DISTRICT NO.NHS-1(PACIFIC ARROYO) . I K CITY OF MOORPARK,COUNTY OF VENTURA.STATE OF CALIFORNIA, ' r." •�������'e I6Y THE CRITY COUNCIL OF THE CITY OF MOORPARK ATA . DAY OF MEETINDTHEREOF 01B.BONTHE DAY OF ,.HELD BY ITS RESOLUTION .:.:.:♦:♦:♦:.:,:♦::, I i CITY CLERK ..♦.♦♦♦♦♦♦♦.♦. L___ CITY OF MOORPARK .....- L_ i11E�110UR OF THIS �O'CLOCN .M.,IN BOOKiS.AT .♦♦.♦♦♦..♦♦♦♦♦.♦♦♦♦♦..♦i T PAGE OF LAPPS OF INSTRUMENT AND COMMUNITY `.� ATTHE REQUESTOFTHE CITY OF MOORMRK IN THE OFFICE /�:::: :::::: ::::♦:::: _ OF THE COUNh'RECORDER OF THE COUNTY OF VENTURA, STATE OF CALIFORNIA. {NF. l BY DEPUTY COUNTY RECORDERCLERK OF VENTURA T ••♦♦♦'♦♦• THE�NESAND DIMENSIONS OF EACH LOT OR PARCEL SHOWN - 40, ON THIS IMP SHALL BE THOSE LNES AND DIMENSIONS AS A00.........7:." =� ... `,\; EMOFOR THONTHE ARCVENTURA LISTEDCOUNTY ASSESSORS MAPS FOR THOSE PARCELS LISTED � `\�\\�� TIE VENTURACOUNTY ASSESSOR'S LAPS SMALL GOVERN / ..e - FOR AIL MEARS CONCERNING THE ONES AND DIMENSIONS OF PP�Y� SUCH LOTS OR PARCELS / MAP REFERENCE ASSESSOR'S NUMBER PARCEL NUMBER 1 506-0.036100 -_... 2 506-0-030-195 1 1-011•. - - 3 506-0-030-2055 I =COMMUNITY FACILITIES DISTRICT BOUNDARY 4 506-0-030-245 Lose 5 506-0430-255 FA 6 506450643-050-515WILL DAN -050-5 1 750643-050-5157 506-0-350-525 Exhibit B Page 17 • 80 Attachment 5 RESOLUTION NO. 2018- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, DETERMINING NECESSITY TO INCUR BONDED INDEBTEDNESS FOR THE CITY OF MOORPARK 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"), pursuant to the Mello-Roos Community Facilities Act of 1982, 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, on January 17, 2018, the Council also adopted a resolution entitled "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 the City of Moorpark Community Facilities District No. 2018-1 (Pacific Arroyo)" (the "Resolution of Intention to Incur Bonded Indebtedness") stating its intention to incur bonded indebtedness within the boundaries of the CFD for the purpose of financing the costs of certain facilities specified in the Resolution of Intention; and WHEREAS, the Council has held a noticed public hearing as required by the Act about the determination to proceed with the formation of the CFD, the provision of certain public facilities by the CFD and the rate and method of apportionment of the special tax to be levied within the CFD to pay the principal and interest on the proposed bonded indebtedness in the CFD and the administrative costs of the City relative to the CFD; and WHEREAS, subsequent to the public hearing, the Council adopted a resolution entitled "A Resolution of Formation of the City Council of the City of Moorpark to Form Community Facilities District No. 2018-1 (Pacific Arroyo)" (the "Resolution of Formation"); and WHEREAS, the Council has also held a noticed public hearing as required by the Act relative to the matters material to the questions set forth in the Resolution of Intention to Incur Bonded Indebtedness; and 81 WHEREAS, no written protests with respect to the matters material to the questions set forth in the Resolution of Intention to Incur Indebtedness have been filed with the City Clerk. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Recitals. The foregoing recitals are true and correct. SECTION 2. Necessity. The Council deems it necessary to incur bonded indebtedness in the maximum aggregate principal amount of $25,000,000 within the boundaries of the CFD for the purpose of financing the costs of all or a portion of the facilities defined in the Resolution of Formation (the "Facilities"), including, but not limited to, the costs of issuing and selling bonds to finance all or a portion of the Facilities and the costs of the City in establishing and administering the CFD. SECTION 3. Entire CFD Liable. The whole of the CFD shall pay for the bonded indebtedness through the levy of the special tax. The tax is to be apportioned in accordance with the formula set forth in Exhibit "B" to the Resolution of Formation. SECTION 4. Bonds. Bonds in the maximum amount of $25,000,000 are hereby authorized, subject to voter approval. Indebtedness subject to this limit shall only include indebtedness evidenced by bonds or notes and shall not include bonds described in Section 53364.2(e) of the Act. The bonds may be issued in one or more series and mature and bear interest at such rate or rates, payable semiannually or in such other manner, all as the Council or its designee shall determine, at the time or times of sale of such bonds; provided, however, that the interest rate or rates shall not to exceed the maximum interest rate permitted by applicable law at the time of sale of the bonds and the bonds or any series thereof shall have a maximum term of not to exceed forty (40) years. SECTION 5. Election. The proposition of incurring the bonded indebtedness herein authorized shall be submitted to the qualified electors of the CFD and shall be consolidated with elections on the proposition of levying special taxes within the CFD and the establishment of an appropriations limit for the CFD pursuant to Section 53353.5 of the Act. The time, place and further particulars and conditions of such election shall be as specified by separate resolution of the Council. 2 82 SECTION 6. 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 Janice S. Parvin, Mayor ATTEST: Maureen Benson, City Clerk 3 83 Attachment 6 RESOLUTION NO. 2018- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, CALLING SPECIAL ELECTION REGARDING COMMUNITY FACILITIES DISTRICT NO. 2018-1 (PACIFIC ARROYO) WHEREAS, the City Council (the "Council") of the City of Moorpark (the "City") has adopted a resolution entitled "A Resolution of Formation of the City of Moorpark to Form Community Facilities District No. 2018-1 (Pacific Arroyo)" (the "Resolution of Formation"), ordering the formation of the "City of Moorpark Community Facilities District No. 2018-1 (Pacific Arroyo)" (the "CFD"), authorizing the levy of a special tax on property within the CFD and preliminarily establishing an appropriations limit for the CFD, all 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 Council has also adopted a resolution entitled "A Resolution Determining Necessity to Incur Bonded Indebtedness for the City of Moorpark Community Facilities District No. 2018-1 (Pacific Arroyo)" (the "Resolution Determining Necessity"), determining the necessity to incur bonded indebtedness in the maximum aggregate principal amount of $25,000,000 upon the security of the special tax to be levied within the CFD pursuant to the Act; and WHEREAS, pursuant to the provisions of the Resolution of Formation and the Resolution Determining Necessity, the propositions of the levy of the special tax, the establishment of the appropriations limit and the incurring of the bonded indebtedness shall be submitted to the qualified electors of the CFD as required by the provisions of the Act. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Issues Submitted. Pursuant to Sections 53326, 53351 and 53325.7 of the Act, the issues of the levy of the special tax, the incurring of bonded indebtedness and the establishment of the appropriations limit shall be submitted to the • qualified electors (as defined below) of the CFD at an election called therefor as provided below. SECTION 2. Qualified Electors. The Council hereby finds that fewer than twelve (12) persons have been registered to vote within the territory of the CFD for each of the ninety (90) days preceding the close of the public hearings heretofore conducted and concluded by the Council for the purposes of these proceedings. Accordingly, and pursuant to Section 53326 of the Act, the Council finds that, for these proceedings, the - qualified electors are the landowners within the CFD and that the vote shall be by such 84 landowners or their authorized representatives, each having one vote for each acre or portion thereof such landowner owns in the CFD as of the close of the public hearings. SECTION 3. Conduct of Election. The Council hereby calls a special election to consider the measures described in section 1 above, which election shall be held on February 21, 2018, and the results thereof canvassed at the meeting 9f the Council on February 21, 2018. The City Clerk is hereby designated as the official to conduct the election and to receive all ballots until 6:30 p.m. on the election date. It is hereby acknowledged that the City Clerk has on file the Resolution of Formation, a certified map of the boundaries of the CFD, and a sufficient description to allow the City Clerk to determine the electors of the CFD. Pursuant to Section 53327 of the Act, the election shall be conducted by messenger or mail-delivered ballot pursuant to Section 4000 of the California Elections Code, except that Sections 53326 and 53327 of the Act shall govern for purposes of determining the date of election. SECTION 4. Ballot. As authorized by Section 53353.5 of the Act, the three propositions described in section 1 above shall be combined into a single ballot measure, the form of which is attached hereto as Exhibit "A" and by this reference incorporated herein and the form of ballot is hereby approved. The City Clerk is hereby authorized and directed to cause a ballot, in substantially the form of Exhibit "A," to be delivered to each of the qualified electors of the CFD. Each ballot shall indicate the number of votes to be voted by the respective landowner to which the ballot pertains. Each ballot shall be accompanied by all supplies and written instructions necessary for the use and return of the ballot. The envelope to be used to return the ballot was enclosed with the ballot, had the return postage prepaid, and contained the following: (a) the name and address of the landowner, (b) a declaration, under penalty of perjury, stating that the voter is the owner of record or authorized representative of the landowner entitled to vote and is the person whose name appears on the envelope, (c) the printed name, signature and address of the voter, (d) the date of signing and place of execution of the declaration pursuant to clause (b) above, and (e) a notice that the envelope contains an official ballot and is to be opened only by the canvassing board of the election. Notwithstanding the foregoing, such requirements may be waived by each qualified elector. SECTION 5. Waivers. The Council hereby further finds that the provisions of Section 53326 of the Act requiring a minimum of ninety (90) days following the adoption of the Resolution of Formation to elapse before the special election are for the protection of the qualified electors of the CFD. There is on file with the City Clerk a written waiver executed by all of the qualified electors of the CFD allowing for a shortening of the time for the special election to expedite the process of formation of the CFD and waiving any requirement for notice, analysis, arguments and other matters in connection with the election. Accordingly, the Council finds and determines that the qualified electors have requested the election, the formation of the CFD, and the levy of the special tax and have been fully apprised of and have agreed to the shortened time for the election and waiver of analysis, arguments, and other election matters and have thereby been fully protected in these proceedings. The Council also finds and 2 85 determines that the City Clerk has concurred in the shortened time for the election. Analysis and arguments with respect to the ballot measures are hereby waived, as provided in Section 53327 of the Act. SECTION 6. Accountability. The Council hereby finds that the proposed debt issuance constitutes a "local bond measure" within the meaning of Sections 53410, et seq. of the California Government Code. As a result, the bond measure shall include the propositions set forth above and the following: (a) the specific purpose of the bonds shall be as set forth in the propositions; (b) any proceeds received from the sale of any bonds shall be applied only to the purposes set forth in the propositions; (c) the proceeds of any bonds shall be deposited into special accounts to be created therefor as part of the issuance of the bonds; and (d) the City shall cause a report to be prepared annually under Section 53411 of the Government Code. SECTION 7. Effective Date. This Resolution shall take effect upon its adoption. SECTION 8. 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 Janice S. Parvin, Mayor ATTEST: Maureen Benson, City Clerk Attachment: Exhibit A— Official Ballot 3 86 EXHIBIT A CITY OF MOORPARK COMMUNITY FACILITIES DISTRICT NO. 2018-1 (PACIFIC ARROYO) OFFICIAL BALLOT SPECIAL TAX ELECTION This ballot is for a special, landowner election. You must return this ballot in the enclosed postage paid envelope to the office of the City Clerk of the City of Moorpark no later than the hour of 6:30 p.m. on February 21, 2018, either by mail or in person. The City Clerk's office is located at 799 Moorpark Avenue, Moorpark, California 93021. To vote, mark a cross (X) on the voting line after the word "YES" or after the word "NO". All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void. If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of Moorpark and obtain another. BALLOT MEASURE. Shall the City of Moorpark incur an indebtedness and issue bonds in the maximum aggregate principal amount of not to exceed $25,000,000 (excluding bonds described in Section 53364.2(e) of the California Government Code) with interest at a rate or rates not to exceed the maximum interest rate permitted by law at the time of sale of such bonds on behalf of City of Moorpark Community Facilities District No. 2018- 1 (Pacific Arroyo) (the "CFD"), the proceeds of which bonds will be used to acquire and/or construct certain facilities and pay for the costs of issuing the bonds and related expenses; shall a special tax payable solely from lands within the CFD be levied annually, commencing in the City's fiscal year 2018-19, upon lands within the CFD to pay for the principal and interest upon such bonds, to pay the costs of the City in administering the CFD, and to pay for the costs of acquiring and/or constructing certain facilities; and shall the annual appropriations limit of the CFD be established in the amount of$2,500,000? YES: NO: By execution in the space provided below, you also indicate your waiver of (i) the time limit pertaining to the conduct of the election, (ii) any requirement for analysis and arguments with respect to the ballot measure, and (iii) any irregularity in the proceedings that may be claimed as a result of the application of such waivers. Number of Votes: Property Owner: A-1 8 7 Attachment 7 RESOLUTION NO. 2018- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, DECLARING RESULTS OF SPECIAL ELECTION AND DIRECTING RECORDING OF NOTICE OF SPECIAL TAX LIEN REGARDING COMMUNITY FACILITIES DISTRICT NO. 2018-1 (PACIFIC ARROYO) WHEREAS, this City Council (the "Council") of the City of Moorpark (the "City") has adopted a resolution entitled "A Resolution of Formation of the City Council of the City of Moorpark to Form Community Facilities District No. 2018-1 (Pacific Arroyo)" (the "Resolution of Formation"), ordering the formation of the "City of Moorpark Community Facilities District No. 2018-1 (Pacific Arroyo)" (the "CFD"), authorizing the levy of a special tax on property within the CFD and preliminarily establishing an appropriations limit for the CFD, all pursuant to the Mello-Roos Community Facilities Act of 1982, 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 Council has also adopted a resolution entitled "A Resolution Determining Necessity to Incur Bonded Indebtedness for the City of Moorpark Community Facilities District No. 2018-1 (Pacific Arroyo)" (the "Resolution Determining Necessity"), determining the necessity to incur bonded indebtedness in the maximum aggregate principal amount of $25,000,000 upon the security of the special tax to be levied within the CFD pursuant to the Act; and WHEREAS, under the provisions of the Resolution of Formation and the Resolution of Necessity and pursuant to a "A Resolution of the City Council of the City of Moorpark Calling Special Election Regarding Community Facilities District No. 2018- 1 (Pacific Arroyo)" (the "Election Resolution"), heretofore adopted by the Council, the propositions of the levy of the special tax, the establishment of the appropriations limit and the incurring of the bonded indebtedness were submitted to the qualified electors of the CFD as required by the provisions of the Act; and WHEREAS, pursuant to the terms of the Election Resolution, which are by this reference incorporated herein, the special election has been held and the City Clerk has on file a Canvass and Statement of Results of Election (the "Canvass"), a copy of which is attached hereto as Exhibit A; and WHEREAS, the Council has reviewed the Canvass, finds it appropriate and • wishes to complete its proceedings for the CFD. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: 88 SECTION 1. Recitals. The foregoing recitals are all true and correct. SECTION 2. Issues Presented. The issues presented at the special election were the levy of a special tax within the CFD, the incurring of a bonded indebtedness in the maximum aggregate principal amount of $25,000,000, and the approval of an annual appropriations limit of not to exceed $2,500,000, all pursuant to the Resolution of Formation and the Resolution of Necessity. SECTION 3. Canvass and Issues Approved. The Council hereby approves the Canvass and finds that it shall be a permanent part of the record of its proceedings for the CFD. Pursuant to the Canvass, the issues presented at the special election were approved by the qualified electors of the CFD by more than two-thirds (2/3) of the votes cast at the special election. SECTION 4. Proceedings Approved. Pursuant to the voter approval, the CFD is hereby declared to be fully formed with the authority to levy the special taxes, to incur the approved bonded indebtedness and to have the established appropriations limit, all as heretofore provided in these proceedings and in the Act. It is hereby found that all prior proceedings and actions taken by the Council with respect to the CFD were valid and in conformity with the Act. SECTION 5. Notice of Tax Lien. The City Clerk is hereby directed to complete, execute and cause to be recorded in the office of the County Recorder of the County of Ventura a notice of special tax lien in the form required by the Act, such recording to occur no later than fifteen (15) days following adoption by the Council of this Resolution. SECTION 6. Effective Date. This Resolution shall take effect upon its adoption. SECTION 7. 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 Janice S. Parvin, Mayor ATTEST: Maureen Benson, City Clerk Attachment: Exhibit A— Canvass and Statement of Result of Election 2 89 EXHIBIT A CANVASS AND STATEMENT OF RESULT OF ELECTION CITY OF MOORPARK COMMUNITY FACILITIES DISTRICT NO. 2018-1 (PACIFIC ARROYO) I hereby certify that on February 21, 2018, I canvassed the returns of the election held on February 21, 2018, in the City of Moorpark Community Facilities District No. 2018-1 (Pacific Arroyo) and the total number of ballots cast in said election and the total number of votes cast for and against the measure are as follows and the totals as shown for and against the measure are full, true and correct: Qualified Landowner Votes Votes Cast YES NO City of Moorpark Community Facilities District No. 2018-1 (Pacific Arroyo), Special Tax Election, February 21, 2018 BALLOT MEASURE: Shall the City of Moorpark incur an indebtedness and issue bonds in the maximum aggregate principal amount of not to exceed $25,000,000 (excluding bonds described in Section 53364.2(e) of the California Government Code) with interest at a rate or rates not to exceed the maximum interest rate permitted by law at the time of sale of such bonds on behalf of City of Moorpark Community Facilities District No. 2018- 1 (Pacific Arroyo) (the "CFD"), the proceeds of which bonds will be used to acquire and/or construct certain facilities and pay for the costs of issuing the bonds and related expenses; shall a special tax payable solely from lands within the CFD be levied annually, commencing in the City's fiscal year 2018-19, upon lands within the CFD to pay for the principal and interest upon such bonds, to pay the costs of the City in administering the CFD, and to pay for the costs of acquiring and/or constructing certain facilities; and shall the annual appropriations limit of the CFD be established in the amount of$2,500,000? IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal this 21st day of February, 2018. By: Maureen Benson, City Clerk City of Moorpark EXHIBIT A 9 0 Attachment 8 ORDINANCE NO. AN ORDINANCE OF THE CITY OF MOORPARK, CALIFORNIA, LEVYING SPECIAL TAXES WITHIN CITY OF MOORPARK 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 stating its intention to establish "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"), to finance the acquisition and construction of certain facilities; and WHEREAS, notice was published as required by the Act relative to the intention of the Council to form the CFD, to provide for certain facilities and to incur bonded indebtedness for the CFD in an amount not to exceed $25,000,000; and WHEREAS, the Council has held noticed public hearings as required by the Act relative to (i) the determination to proceed'with the formation of the CFD and the rate and method of apportionment of the special tax to be levied within the CFD to finance a portion of the costs of the facilities and (ii) the issuance of not to exceed $25,000,000 of bonded indebtedness for the CFD; and WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the formation of the CFD and the levy of said special taxes were heard, substantial evidence was presented and considered by this City Council and a full and fair hearing was held; and WHEREAS, subsequent to the hearing, the Council adopted resolutions entitled "A Resolution of Formation of the City Council of the City of Moorpark to Form Community Facilities District No. 2018-1 (Pacific Arroyo)" (the "Resolution of Formation"), "A Resolution Determining Necessity to Incur Bonded Indebtedness for the City of Moorpark Community Facilities District No. 2018-1 (Pacific Arroyo)" (the "Resolution Determining Necessity") and "A Resolution of the City Council of the City of Moorpark Calling Special Election Regarding Community Facilities District No. 2018-1 (Pacific Arroyo)", which resolutions defined the public facilities to be financed by the CFD (the "Facilities"), established the CFD, authorized the levy of a special tax with the CFD, determined the necessity to incur bonded indebtedness in the CFD and called an election within the CFD on the propositions of incurring indebtedness, levying a special tax, and establishing an appropriations limit within the CFD, respectively; and WHEREAS, on February 21, 2018 a special election was held within the CFD at which the eligible landowner-electors approved such propositions by the two-thirds (2/3) vote required by the Act. 91 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES ORDAIN AS FOLLOWS: SECTION 1. By the passage of this Ordinance the Council hereby authorizes and levies special taxes within the CFD pursuant to the Act, at the rate and in accordance with the formula (the "Rate and Method") set forth in the Resolution of Formation, which Resolution of Formation is by this reference incorporated herein. The special taxes are hereby levied commencing in fiscal year 2018-19 and in each fiscal year thereafter until payment in full of any bonds issued by the City for the CFD (the "Bonds") or such longer period provided in the Rate and Method, as contemplated by the Resolution of Formation and the Resolution of Necessity, and all costs of administering the CFD. SECTION 2. The Finance Director of the City is hereby authorized and directed each fiscal year to determine the specific special tax rate and amount to be levied for the next ensuing fiscal year for each parcel of real property within the CFD, in the manner and as provided in the Resolution of Formation. SECTION 3. Properties or entities of the State, federal or local governments shall be exempt from any levy of the special taxes in accordance with the Act and the Rate and Method. In no event shall the special taxes be levied on any parcel within the CFD in excess of the maximum tax specified in the Rate and Method. SECTION 4. All of the collections of the special tax shall be used as provided for in the Act and in the Resolution of Formation including, but not limited to, the payment of principal and interest on the Bonds, the replenishment of the reserve fund for the Bonds, the payment of the costs of the Facilities, the payment of the costs of the City in administering the CFD, and the costs of collecting and administering the special tax. SECTION 5. The special taxes shall be collected in the same manner as ordinary ad valorem taxes are collected and shall have the same lien priority, and be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem taxes; provided, however, that the Council or its designee may provide for other appropriate methods of collection. In addition, the provisions of Section 53356.1 of the Act shall apply to delinquent special tax payments. The Finance Director of the City is hereby authorized and directed to provide all necessary information to the auditor/tax collector of the County of Ventura in order to effect proper billing and collection of the special tax, so that the specialtax shall be included on the secured property tax roll of the County of Ventura for fiscal year 2018-19 and for each fiscal year thereafter until the Bonds are paid in full or such longer period of time provided in the Rate and Method. SECTION 6. If for any reason any portion of this Ordinance is found to be invalid, or if the special tax is found inapplicable to any particular parcel within the CFD, by a court of competent jurisdiction, the balance of this Ordinance and the application of the special tax to the remaining parcels within the CFD shall not be affected. • 2 92 SECTION 7. This ordinance shall become effective thirty (30) days after its passage and adoption. SECTION 8. The City Clerk shall certify to the passage and adoption of this ordinance; shall enter the same in the book of original ordinances of said City; shall make a written record of the passage and adoption thereof in the minutes of the proceedings of the City Council at which the same is passed and adopted; and shall publish notice of adoption in the manner required by law. PASSED AND ADOPTED this day of , 2018 Janice S. Parvin, Mayor ATTEST: Maureen Benson, City Clerk 3 93 Attachment 9 ORDER OF PROCEEDINGS FOR PUBLIC HEARING, VOTE AND ACTIONS City of Moorpark Community Facilities District No. 2018-1 (Pacific Arroyo) 1. The Mayor makes opening remarks to the following effect: "This is the time and place for the public hearings in this Council's proceedings for establishment of Community Facilities District No. 2018-1 (Pacific Arroyo). The hearings are to inquire into the formation of the District, the levy of special taxes in the District and the need to incur bonded indebtedness in the District. "Before I formally open the hearings, are there any property owners or registered voters in the District who wish to file written protests? If so, they must be filed with the City Clerk now. [Pause to see if there are any protests.] "The hearings are now officially opened. To have orderly hearings, we will first have presentations by staff and the consultants about the District. After that, we will receive comments and questions and any oral protests from any interested persons. When all comments have been received the hearings will be closed." 2. Staff and consultants make presentations, as appropriate. 3. Time for comments, questions and protests from audience. 4. Close hearings. 5. The City Council may then ask questions and discuss the District. 6. When discussion is completed, the City Council considers and adopts: (a) Resolution of Formation of Community Facilities District; (b) Resolution Deeming It Necessary to Incur Bonded Indebtedness in Community Facilities District; and (c) Resolution Calling Special Election 7. The Mayor then announces: "At this time, I ask the City Clerk to open the ballot(s) and announce the results of the election." [Pause for opening of ballot(s) by Clerk.] 94 8. The City Clerk opens the ballot(s) and announces the results of the election. The City Clerk then completes one copy of the Certificate of City Clerk Canvass and Statement of Results of Election (form is attached to Resolution 10(a) below). 9. The Mayor then announces: "The results of the election being unanimously in favor of the levy of the special taxes, the establishment of the appropriations limit and the incurring of bonded indebtedness, we may now proceed with the final actions for the District." 10. The City Council considers and takes the following actions: (a) ADOPTION OF: Resolution Declaring Election Results of Community Facilities District No. 2018-1 (Pacific Arroyo) (b) READING OF: Ordinance of the City Council of the City of Moorpark Levying a Special Taxes within Community Facilities District No. 2018-1 (Pacific Arroyo) -2- 95 MOORPARK CITY COUNCIL AGENDA REPORT SUPPLEMENTAL TO AGENDA ITEM 8B TO: Honorable City Council FROM: Ron Ahiers, Finance Director (?),- DATE: February 21, 2018 (City Council Meeting of February 21, 2018) SUBJECT: Revised CFD Report for City of Moorpark Community Facilities District 2018-1 (CFD 2018-1) Pacific Arroyo BACKGROUND On February 16, 2018, the City received a revised CFD report for CFD 2018-1 Pacific Arroyo. The attached report is in legislative format so the reader can easily see the changes from the report that was originally submitted to the City Council. There are no substantive changes between the original CFD report and this revised CFD report. FISCAL IMPACT None. STAFF RECOMMENDATION Accept the revised CFD report for CFD 2018-1 Pacific Arroyo Attachments: CFD 2018-1 Pacific Arroyo, CFD Report go,,,(I.p 5 4„0„4 CALIFORNIA L#cam bJ fiIcgaod City of Moorpark Community Facilities District No. 2018-1 (Pacific Arroyo) CFD Report '7368 Via Industria .uite 200 emecula, CA 92590 951 587 3500 1800.755.6864 951.587.3510 willdan.com/financial WI LLDAN Financial Services TABLE OF CONTENTS TABLE OF CONTENTS 1 I. INTRODUCTION 2 II. GENERAL DESCRIPTION & BOUNDARIES OF CFD No. 2018-1 3 III. DESCRIPTION OF FACILITIES 4 - 5 IV. COST ESTIMATES 6 V. RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX 7 EXHIBIT A (BOUNDARY MAP) EXHIBIT B (PRELIMINARY CFD BUDGET) EXHIBIT C (RATE AND METHOD OF APPORTIONMENT) W"WILDA FinanciaLl ServicNes 1 Introduction WHEREAS, the City Council of the City of Moorpark (hereinafter referred to as the "City Council"), in the State of California, did, pursuant to the terms and provisions of Chapter 2.5 of Part 1, of Division 2, of Title 5, commencing at Section 53311 of the Government Code of the State of California, as amended (the "Act"), adopted a Resolution of Intention for the proposed formation of City of Moorpark Community Facilities District No. 2018-1 (Pacific Arroyo) ("CFD No. 2018-1"). WHEREAS, this Community Facilities District Report ("Report") is being provided to the City Council and generally contains the following: 1. A brief description of CFD - ! _No. 2018-1 Arroyo) of the City of Moorpark ("CFD NO. 2018 11; 2. A brief description of the Facilities required at the time of formation to meet the needs of CFD No. 2018-1. 3. A brief description of the Boundaries of CFD 2018-1; and 4. An estimate of the cost of financing the bonds used to pay for the Facilities, including all costs associated with formation of the District, issuance of bonds, determination of the amount of any special taxes, collection of any special taxes, or costs otherwise incurred in order to carry out the authorized purposes of the City with respect to the District, and any other incidental expenses to be paid through the proposed financing. For particulars, reference is made to the Resolution of Intention, Resolution No. 2018- 3662 as previously approved. All capitalized terms not defined herein are defined in the Rate and Method of Apportionment of Special Tax section (Exhibits C) of this RceportReport. NOW THEREFORE Willdan Financial Services, the appointed responsible firm directed to prepare the Report, pursuant to the provisions of the Code, does hereby submit the following: WWI LLDAN I 2 Financial Services II. General Description & Boundaries of CFD No. 2018-1 A description of the exterior boundaries of the territory proposed for inclusion in CFD No. 2018-1, including properties and parcels of land proposed to be subject to the levy of a Special Tax by CFD No. 2018-1, is shown on the boundary map designated as "MAP OF PROPOSED BOUNDARIES OF CITY OF MOORPARK COMMUNITY FACILITIES DISTRICT 2018-1 (PACIFIC ARROYO)", which is on file in the office of the City Clerk of the City of Moorpark and was recorded with the County Recorder of the County of Venture on January 30th, 2018 in Book 20 of Maps of Assessment and Community Facilities Districts at page 19 and as Instrument Number 20180130- 00010485-0. A copy of the map is attached hereto as Exhibit A and hereby incorporated by reference. WWI LLDAN 3 Financial Services Ill. Description of Facilities The General Description of the Facilities that may be acquired or constructed is as follows: • 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. WWILLDAN I 4 Financial Services 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 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. This description of the public capital facilities is general in nature. The final nature and location of improvements and facilities will be determined upon the preparation of final plans and specifications. The final plans and specifications may show substitutes in lieu of, or modifications to, proposed work. Any such substitution shall not be a change or modification in the proceedings as long as the facilities provide a service substantially similar to that as set forth in the Report. WWI LLDAN 5 Financial Services IV. Cost Estimates The proceeds of CFD No. 2018-1 will be used to fund approximately $17.716.17 million in eligible facilities and fees. For cost particulars, reference is made to Exhibit B of this report. WWILLDAN 6 Financial Services V. Rate and Method of Apportionment of Special Tax 1 The Rate and Method of Apportionment (RMA) provides sufficient information to allow a property owner within CFD No. 2018-1 to estimate the Maximum Special Tax for his or her property. It also includes method of prepayment in full or prepayment in part and the procedure for prepayments. For particulars on the rate and method of apportionment, reference is made to Exhibit C of this report. WWI LLDAN I 7 Financial Services EXHIBIT A Boundary Map �WILLDAN A-1 Financial Services MAP OF PROPOSED BOUNDARIES OF CITY OF MOORPARK SHEET 1 OF 1 COMMUNITY FACILITIES DISTRICT NO.2018-1 (PACIFIC ARROYO) COUNTY OF VENTURA STATE OF CALIFORNIA (J} FILED FILED IN THE OFFICE OF SHE City CMC OF-I HE CITY OF N M[]URPAHK PHIS dO' DAY OF •SbrolorY 2018.N' I: --"-- m - ---- - I HERESY CERTIFY THAT THE WITHIN MAP SHO'MNG THE PROPOSED BOUNDARIES OF THE CITY OF MOORPARK E Los Angeles Blvd C R COMMUNITY FACILITIES DISTRICT NO.201 1;PACIFIC ARROYO;. __ 00 CITY CF MOORPARK.COUNTY OF VENTURA.STATE OF CALIFORNIA. / / / - - .- WAS APPROVED / / .r /7/ ' BY THE CITY COUNCIL OF THE CITY OF MOORPARK AT R 11, --- //�/ IIIF*tt REGULAR MEETING TFEREOF,HELD ON THE 17 DAY OF .A aLLI�P. At} Aa1B�3L L7./ GTY�CLeRK// '/ '/ - G:TY OF 61OORPAHK !' / 19* 7 �► FILED THIS.:%G4 DAY OF .' r _.2018,AT // / // - f /.V/- 1 __- THE HOUR OF Y•SL OL^LCa;K ,r BOCK dl+�� , //1/ / / _ _ PAGE 1 G, CF MAPS OF ASSESSMENT AND COMMUNITY f // 411010. .� � FACILITES DISTRICTSANDAS INSTRUMENT /.///.."</// /{ AT THE FtEDUEST OF THE CITY CF MOORPARK IN THE OFFICE OF THE COUNTY RECORDER OF THE OJUNTY OF vENTURA. STATE OF CALIFORNIA. f /42 Aio / �?.!.•i:�.�._ ♦ BY DEPUTY --... / / / / _1:� 41 / - - COUNTY OF VENTURA - / / ` _ _. TIE LINES AND DIMENSIONS OF EACH LOT OR PARCEL SHOWN / .-- �.'� CN THIS MAS SHALL 8=.THOSE LINES AND DEUENSIUNS AS c,Jl _ SHO'AN CN THE vENSWRA COUNTY ASSESSOR'S MAPS _ FOR THOSE PARCELS LISTED. - // / - THE VENTURA COUNTY ASSESSOR'S MAPS SI TALL GOVERN FOR ALL DETAILS CONCERNING TI IE LINES AND DIMENSIONS OF �_ __,-" SUCH LOTS OR PARCELS f / // MAP REFERENCE ASSESSOR'S // / NUMBER P Rso Cr40301ACEL BER _ _ - --- . 2 506-4430-195 Legend - - 3 5060.030-205 =COMMUNITY FACILITIES DISTRICT BOJND.ARY � —. .—506-0-025 5 506-0-030-255 Zone r f,i 6 5C6-0-050-515_ W1LLDAN I\L 2 7 506.0050-525 FAwiclal Services WiWILLDAN A-2 Financial Services ■ EXHIBIT B CFD 2018-1 Preliminary Budget �WILLDAN B_1 Financial Services Exhibit B Pacific Communities -Pacific Arroyo Proposed City of Moorpark CFD 2018-1 Preliminary Budget Total Units 284 Average Per Desc Description Unit Total D IFs DIFs Included in Development Agreement Area Area of Contribution (Los Angeles Avenue) 197 Units (a) S 6,023 S 1,710,551 Area Area of Contribution (Los Angeles Avenue)87 Units Paid in 2001 (a) 849 241,135 Cityw Citywide Traffic Mitigation Fund (b) 12,500 3,550,000 Air Q Air Quality Fee (b) 1,709 485,356 Art in Art in Public Places (c) 1,385 393,272 P ark/Park/Quimby Fee (b) 10,500 2.982,000 Comr Community Services (b) 2.700 766,800 Deve Development Agreement Fee (b) 9.200 2,612,800 Subtc Subtotal $ 44,866 $ 12,741,914 Impr Improvements Los P Los Angeles Avenue Improvements Contribution (d) S 7,095 S 2,015,114 Total Total Facilities Included in DA $ 51,961 $ 14,757,028 DIFs DIFs Not Included in Development Agreement Fire F Fire Protection Facilities Fee S 979 S 278,167 Policy Police Facilities Fee 1,027 291,668 Libra Library Facilities Fee 926 262,893 Subtc Subtotal $ 2,932 $ 832,728 City Affordable Housing In-Lieu Fee (Very Low) (e) $ 5,282 $ 1,500,000 Total City CFD Fee $ 2,000 $ 568,000 (a)Per Total Facilities $ 62,175 $ 17,657,756 (b)Bas (c)Per (a)Per Section 6.5 of the Development Agreement.the 1st 87 units were prepaid Fee only applies to the remaining 197 units (d)Devi(b)Based on draft Development Agreement (e)Fee (c)Per City Fee Schedule.fee equals 1%of total building value(i.e. 1%times estimated vertical construction costs of 565 per sq ft 'avg sq.ft of 2.130 per unit) (d)Developer previously paid 5100.000 of this fee Only 51.915.114 is still due.but the full amount would be eligible for reimbursement (e)In Lieu fee for land acquisition of very low income affordable housing site (t)Fee of 52.000 per unit charged by the City of Moorpark as condition to form the CFD WWI LLDAN B-2 Financial Services EXHIBIT C Rate and Method of Apportionment �WILLDAN C-1 Financial Services I will insert RMA as a PDF for final version VWWILLDAN I C 1 Financial Services 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 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 Pt preceding the Fiscal Year in which the WWI LLDAN Financial Services C-2 Special Tax is being levied, and(ii)that have not been issued a Building Permit on or prior to the May Pt 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. "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, WILLDAN Financial Services C-3 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. "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. WILLDAN Financial Services C-4 "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. "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. WWI LLDAN Financial Services C-5 "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. 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 Class Square 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 WWI LLDAN Financial Services C-6 I 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. Table 2 218-19 Assigned Special Tax Rates Zone 2 Land Building Assigned Use Land Use Type Square Footage Special Tax Class 1 Residential Property > 2,100 $ ,862 ents per Residential Unit 715 2 Residential Property 1,901 —2,100 $Residential Unit 3 Residential Property 1,900 $3567 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 with in 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 WWI LLDAN 2 Financ al Services 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. 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; *"WILLDAN Financial Services C-8 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 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) 7WILLDAN 9 Financial Services 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: 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, WILLDAN Finance'Services I C-10 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 balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero. WWI LLDAN Financial Services C-11 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 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 WWI LLDAN Hnanc al Services C-12 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 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 WWI LLDAN Financial Services C-13 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 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. WWI LLDAN Financial Services C-14 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. • WWI LLDAN Financal Services C-15 Exhibit A CFD Boundary Map A-1 • • MAP OF PROPOSED BOUNDARIES OF CITY OF MOORPARK SHEET 1oF1 COMMUNITY FACILITIES DISTRICT NO.2018-1 (PACIFIC ARROYO) COUNTY OF VENTURA STATE OF CALIFORNIA -I N I H FILED INTHE K.THISOFFICE OF THE CITY CLERK OF THE CRY OF I MOORPARK.THIS OAY OF ,3013 e HEREBY CERTIR THATARIE WITHIN MAPSHOWINGOF MOORPARK E Los Angeles Blvd THE PROPOSED BOUNDARIES OF THE COY OF MOORPARK 9 N 3 COMMUNITY FACILITIES DISTRICT NO 2018-1(PACIFIC ARROYO), CITY OF MOORPARK,COUNTY OF VENTURA.STATE OF CALIFORNIA, - % .. -.�♦.♦♦.,.••-v \ - WAS APPROVED .-. BY THE CITY COUNCIL OF THE CITY OF MOORPARK ATA ♦♦♦.♦♦♦. . REGULAR MEETING THEREOF,HELD ON THE 4 0Y OF FILED THISS OF PAGE OF UMENT ESSMENT AND COMMUNITY FACILITES D AS//od/A ,,,, 0 H COUNTY OF VENTURA LERK : L •,:,,,, _ ,•♦.♦♦• THE LINES AND DIMENSIONS OF EACH LOT OR PARCEL SHOWN 7: �.. ON THIS MAP SHALL BE THOSE LINES AND DIMENSIONS AS • SHOWN ON THE VENTURA COUNTY ASSESSOR'S MAPS - - FOR THOSE PARCELS LISTED. • _ •, THE VENTURA COUNTY ASSESSOR'S MAPS SHALL GOVERN 00'" ..„,--,,, FORALL DETAILS CONCERNING THE ONES AND DIMENSIONS OF Ø'i--:- MAP REFERENCE ASSESSOR'S NUMBER PARCEL NUMBER 1 5050-030-180 _ T_ 2 5050-036195 ---- LBYIIM! - -•-- 3 506-0-030-205 =COMMUNITY FACILITIES DISTRICT BOUNDARY 4 5066036245 Zees 5 5050-030-255 6 506-0-050-515 �27 506-0-050-525 • �Fivenceil Services WILLDAN A-2