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HomeMy WebLinkAboutOrd 520 • ORDINANCE NO. AN ORDINANCE OF THE CITY OF CATHEDRAL CITY, CALIFORNIA, LEVYING A SPECIAL TAX (COMMUNITY FACILITIES DISTRICT NO. 2000-1) WHEREAS, the City Council of the City of Cathedral City, California (the "Council"), as the legislative body of Community Facilities District No. 2000-1 (the "District"), has initiated proceedings pursuant to the "Mello-Roos Community Facilities Act of 1982", as amended (the "Act"), Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code,for the formation of the District, has held a public hearing, conducted an election and received a favorable vote from the qualified electors of the District relating to the levy of a special tax in the District, all as authorized pursuant to the terms and provisions of the Act; and WHEREAS, this Council has found all of such proceedings for the formation of the District and the levy of the special tax to be valid and in conformity with the Act, and said District has duly been created and authorized to levy special taxes pursuant to Article 2 (commencing with Section 53318) of the Act, and this Council thereby acquired jurisdiction to order the levy of the special taxes at the rate and apportion them in the manner specified in said proceedings. NOW, THEREFORE,THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. RECITALS The above recitals are all true and correct. SECTION 2. LEVY OF TAXES This Council does, by the passage of this Ordinance, levy special taxes within the boundaries of the District at not to exceed the rates and apportioned in the manner set forth in Exhibit "A" attached hereto and incorporated herein by this reference; provided, however, that this Council shall determine and establish by resolution the exact amounts of said special tax levy for the 2000-01 fiscal year at such time as the debt service requirements for said fiscal year for the bonds to be issued by the District are known. SECTION 3. ANNUAL LEVY BY RESOLUTION This Council is hereby further authorized each year to determine the amount necessary to be raised by the special tax for the next succeeding fiscal year and to levy by resolution the special tax at a rate not to exceed that as set forth in Exhibit "A" hereto. SECTION 4. EXEMPTIONS FROM SPECIAL TAX Properties or entities of the State, Federal or other local governments shall be exempt from the special tax. SECTION 5. USE OF PROCEEDS OF SPECIAL TAX The proceeds of the special tax may only be used to pay, in whole or in part, the cost of providing public facilities, services and incidental expenses pursuant to the Act. SECTION 6. COLLECTION OF SPECIAL TAX The special tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in case of delinquencies as is provided by law for ad valorem taxes. SECTION 7. EFFECTIVE DATE OF ORDINANCE This Ordinance shall take effect thirty(30)days after the date of its adoption. SECTION 8. PUBLICATION OF ORDINANCE The City Clerk shall cause this Ordinance to be published within fifteen (15) days after its passage at least once in The Desert Sun, a newspaper of general circulation published and circulated in the City of Cathedral City. [THIS SECTION INTENTIONALLY LEFT BLANK] 2 The foregoing Ordinance was approved and adopted at a meeting of the City Council held on February 13, 2000, by the following vote: Ayes: Noes: ea 2� e-�.e0-e- Abstain: >10-- Absent: S •a— oe Gary , Mayor ATTEST: :)12414.- Donna Velotta, City Clerk APPROVED AS TO FORM AND CONTENT: Now. lor U y ly A o e2-4/575..."%/G" REVIEWED: /1) . Donald E. Bradley, City Manager I hereby certify, under penalty of perjury, that the foregoing copy of Ordinance No. 2 G' was P:\APPs\wPOATA\CATH\53-10044 - MRed by the City Council for the City of 2/1/00 ag Cathedral City, Californi , i a meeting thereof held on the:?:;.?„_ day of 1-4 ,20 _ and that same was posted in at 'feast the three public places specified fir suchsting, the said City Council. % . II City CNrk 3 EXHIBIT "A" RATE AND METHOD OF APPORTIONMENT FOR COMMUNITY FACILITIES DISTRICT NO. 2000-1 (RIO VISTA VILLAGE) OF THE CITY OF CATHEDRAL CITY A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels in Community Facilities District No. 2000-1 (Rio Vista Village)of the City of Cathedral City("CFD No. 2000-1") and collected each Fiscal Year commencing in Fiscal Year 2000-01,in an amount determined by the Council through the application of the appropriate Special Tax for "Developed Property," "Taxable Property Owner Association Property," "Taxable Public Property," "Taxable Religious Property" and"Undeveloped Property" as described below. All of the real property in CFD No. 2000-1,unless exempted by law or by the provisions hereof, shall be taxed for the purposes,to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable final map,parcel map,condominium plan,or other recorded County parcel map. The square footage of an Assessor's Parcel is equal to the Acreage multiplied by 43,560. "Act"means the Mello-Roos Community Facilities Act of 1982,as amended,being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2000-1: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both);the costs of collecting the Special Taxes (whether by 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. 2000-1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2000-1 or any designee thereof of complying with City, CFD No. 2000-1 or obligated persons disclosure requirements associated with applicable federal and state securities laws and of the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes;the costs of the City, CFD No. 2000-1 or any designee thereof related to an appeal of the Special Tax;the costs associated with the release of funds from an escrow account; and the City's annual administration fees and third party expenses. Exhibit A - Page 1 Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2000-1 for any other administrative purposes of CFD No. 2000-1, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned Assessor's Parcel number. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor's Parcel number. "Assigned Special Tax" means the Special Tax for each Land Use Class of Developed Property, as determined in accordance with Section C below. "Backup Special Tax" means the Special Tax applicable to each Assessor's Parcel of Developed Property, as determined in accordance with Section C below. "Bonds" means any bonds or other debt(as defined in Section 53317(d)of the Act),whether in one or more series, issued by CFD No. 2000-1 under the Act. "City" means the City of Cathedral City "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD No. 2000-1" means Community Facilities District No. 2000-1 (Rio Vista Village) of the City of Cathedral City. "County" means the County of Riverside. "Council" means the City Council of the City of Cathedral City, acting as the legislative body of CFD No. 2000-1. "Developed Property" means, for each Fiscal Year, all Taxable Property, exclusive of Taxable Property Owner Association Property, Taxable Public Property, or Taxable Religious Property, for which a building permit for new construction was issued after January 1, 1999 and prior to January 1 of the prior Fiscal Year. "Fiscal Year" means the period starting July 1 and ending on the following June 30. Exhibit A - Page 2 "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. "Maximum Special Tax" means the maximum Special Tax,determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor's Parcel. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which the building permit(s) was issued for a non-residential use. "Outstanding Bonds" means all Bonds which are deemed to be outstanding under the Indenture. "Property Owner Association Property" means any property within the boundaries of CFD No. 2000-1 that is owned by or dedicated to a property owner association, including any master or sub-association. Property utilized for blow-sand mitigation shall be included within this category. "Proportionately" means for Developed Property that the ratio of the actual Special Tax levy to the Assigned Special Tax is equal for all Assessor's Parcels of Developed Property within CFD No. 2000-1. 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 in CFD No. 2000-1. "Public Property" means any property within the boundaries of CFD No. 2000-1 that is used for rights-of-way or any other purpose and is owned by or irrevocably offered for dedication to the federal government, the State, the County or any other public agency, provided however that any property leased by a public agency 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. Property utilized for public schools shall be included in this category. "Religious Property" means all property within the boundaries of CFD No. 2000-1 which is used primarily as a place of worship and is exempt from ad valorem property taxes because it is owned by a religious organization. Religious Property,without limitation,does not include any Assessor's Parcels used primarily for religious schools, day care centers, or congregate care facilities. "Residential Property" means all Assessor's Parcels of Developed Property for which the building permit has been issued for purposes of constructing one or more residential dwelling units. Exhibit A - Page 3 "Residential Floor Area" means all of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio,or similar area. The determination of Residential Floor Area shall be made by reference to the building permit(s) issued for such Assessor's Parcel. "Single Family Attached Property" means all Assessor's Parcels of Residential Property for which building permits have been issued for attached residential units. "Single Family Detached Property" means all Assessor's Parcels of Residential Property for which building permits have been issued for detached residential units. "Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor's Parcel of Developed Property, Undeveloped Property, Taxable Property Owner Association Property, Taxable Public Property, and Taxable Religious Property to fund the Special Tax Requirement. "Special Tax Requirement" means that amount required in any Fiscal Year for CFD No. 2000-1 to: (i) pay debt service on all Outstanding Bonds; (ii) pay periodic costs on the Bonds, including but not limited to,credit enhancement and rebate payments on the Bonds; (iii)pay reasonable Administrative Expenses; (iv)pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds; (v) pay directly for acquisition or construction of CFD No. 2000-1 facilities eligible under the Act; and(vi)pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year;less(vii)a credit for funds available to reduce the annual 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. 2000-1 which are not exempt from the Special Tax pursuant to law or Section E below. "Taxable Property Owner Association Property" means all Assessor's Parcels of Property Owner Association Property that are not exempt pursuant to Section E below. "Taxable Public Property" means all Assessor's Parcels of Public Property that are not exempt pursuant to Section E below. "Taxable Religious Property" means all Assessor's Parcels of Religious Property that are not exempt pursuant to Section E below. ,,, "Trustee" means the trustee or fiscal agent under the Indenture. Exhibit A - Page 4 "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Taxable Property Owner Association Property, Taxable Public Property or Taxable Religious Property. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, all Taxable Property within CFD No. 2000-1 shall be classified as Developed Property, Taxable Public Property, Taxable Property Owner Association Property, Taxable Religious Property or Undeveloped Property, and shall be subject to Special Taxes in accordance with the rate and method of apportionment determined pursuant to Sections C and D below. Residential Property shall be assigned to Land Use Classes 1 through 5 and Non-Residential Property shall be assigned to Land Use Class 6. The Assigned Special Tax for Residential Property shall be based on the Residential Floor Area located on the Assessor's Parcel. The Assigned Special Tax for Non-Residential Property shall be based on the Acreage of the Assessor's Parcel. C. MAXIMUM SPECIAL TAX RATE 1. Developed Property a. Maximum Special Tax The Maximum Special Tax for each Assessor's Parcel classified as Developed Property shall be the greater of (i) the amount derived by application of the Assigned Special Tax or (ii) the amount derived by application of the Backup Special Tax. b. Assigned Special Tax The Assigned Special Tax for Fiscal Year 2000-01 for each Land Use Class is shown below in Table 1. Lly Exhibit A -Page 5 TABLE 1 Assigned Special Taxes for Developed Property For Fiscal Year 2000-01 Community Facilities District No. 2000-1 ir Land Assigned Special Tax Use Description Lot Size Per unit/Acre Class 1 Single Family Detached Property 8,000 or more square feet $1,415.92 per Unit 2 Single Family Detached Property 6,000—7,999 square feet $1,238.93 per Unit 3 Single Family Detached Property 5,000—5,999 square feet $1,017.69 per Unit 4 Single Family Detached Property Less than 5,000 square feet $884.95 per Unit 5 Single Family Attached Property Not Applicable $663.71 per Unit 6 Non-Residential Property Not Applicable $8,839.84 per Acre c. Backup Special Tax The Fiscal Year 2000-01 Backup Special Tax for an Assessor's Parcel of Developed Property shall equal $8,839.84 per Acre. Increase in the Assigned Special Tax and Backup Special Tax On each July 1, commencing on July 1, 2001,the Assigned Special Tax and the Backup Special Tax shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year. 2. Undeveloped Property,Taxable Property Owner Association Property,Taxable Public Property and Taxable Religious Property a. Maximum Special Tax The Fiscal Year 2000-01 Maximum Special Tax for Undeveloped Property, Taxable Property Owner Association Property, Taxable Public Property, and Taxable Religious Property in CFD No. 2000-1 shall be $8,996.37 per Acre. Exhibit A - Page 6 Increase in the Maximum Special Tax CV On each July 1, commencing on July 1, 2001,the Maximum Special Tax for Undeveloped Property, Taxable Property Owner Association Property, Taxable Public Property, and Taxable Religious Property shall be increased L by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2000-01 and for each following Fiscal Year,the Council shall levy the Special Tax until the amount of Special Taxes equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows: First: 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; Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has 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; tio' Third: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed,then the levy of the Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is determined through the application of the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor's Parcel; Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the first three steps have been completed,then the Special Tax shall be levied Proportionately on each Assessor's Parcel of Taxable Property Owner Association Property,Taxable Public Property and Taxable Religious Property at up to the Maximum Special Tax for Taxable Property Owner Association Property, Taxable Public Property or Taxable Religious Property. Notwithstanding the above,under no circumstances will the Special Tax levied against any Assessor's Parcel of Residential Property for which an occupancy permit for private L residential use has been issued be increased by more than ten percent as a consequence of delinquency or default by the owner of any other Assessor's Parcel within the CFD, except for those Developed Residential Properties whose owners are also delinquent or in default on their Special Tax payments for one or more other properties within CFD No. 2000-1. CV Exhibit A- Page 7 E. EXEMPTIONS No Special Tax shall be levied on up to 6.0 Acres of Religious Property and 121.0 Acres of Property Owner Association Property and Public Property,. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which property becomes Property Owner Association Property, Public Property, or Religious Property. However, should an Assessor's Parcel no longer be classified as Property Owner Association Property, Public Property or Religious Property, its tax-exempt status will be revoked. Property Owner Association Property, Public Property or Religious Property that is not exempt from Special Taxes under this section shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the fourth step in Section D above, at up to 100% of the applicable Maximum Special Tax for Taxable Property Owner Association Property, Taxable Public Property or Taxable Religious Property. F. REVIEW/APPEAL COMMITTEE The Council shall establish as part of the proceedings and administration of CFD No. 2000-1 a special three-member Review/Appeal Committee. Any landowner or resident who feels that the amount of the Special Tax levied on their Assessor's Parcel is in error may file a notice with the Review/Appeal Committee appealing the amount of the Special Tax levied on such Assessor's Parcel. The Review/Appeal Committee shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals, as herein specified. The decision of the Review/Appeal Committee shall be final and binding as to all persons. G. MANNER OF COLLECTION The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 2000-1 may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations,and may covenant to foreclose and may actually foreclose on delinquent Assessor's Parcels as permitted by the Act. H. PREPAYMENT OF SPECIAL TAX The following definitions apply to this Section H: "CFD Public Facilities" means either$12,711,000 in 1999 dollars,which shall increase by the Construction Inflation Index on July 1,2000,and on each July 1 thereafter,or such lower number as (i) shall be determined by the CFD Administrator as sufficient to provide the public facilities to be provided by CFD No. 2000-1 under the authorized Mello-Roos financing program for CFD No. 2000-1, or (ii) shall be determined by the Council Exhibit A - Page 8 concurrently with a covenant that it will not issue any more Bonds to be supported by lir Special Taxes levied under this Rate and Method of Apportionment as described in Section D. "Construction Fund" means an account specifically identified in the Indenture to hold funds which are currently available for expenditure to acquire or construct public facilities eligible under the Act. "Construction Inflation Index" means the annual percentage change in the Engineering News-Record Building Cost Index for the City of Los Angeles,measured as of the calendar year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the CFD Administrator that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of Los Angeles. "Future Facilities Costs" means the CFD Public Facilities minus (i) public facility costs available to be funded through existing construction or escrow accounts or funded by Previously Issued Bonds, (ii) public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment, and (iii)public facilities costs paid directly with Special Taxes. "Outstanding Bonds" means all Previously Issued Bonds which are deemed to be (II1Pr outstanding under the Indenture after the first interest and/or principal payment date following the current Fiscal Year. "Previously Issued Bonds" means all Bonds that have been issued by CFD No. 2000-1 prior to the date of prepayment. Prepayment in Full Any Assessor's Parcel of Developed Property or Undeveloped Property for which a building permit has been issued may be prepaid. The Special Tax obligation applicable to such Assessor's Parcel in CFD No. 2000-1 may be fully prepaid and the obligation of the Assessor's Parcel to pay the Special Tax permanently satisfied as described herein; provided that a prepayment may be made 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 intending to prepay the Special Tax obligation shall provide the CFD L Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice,the CFD Administrator shall notify such owner of the prepayment amount of such Assessor's Parcel. The CFD Administrator may charge a reasonable fee for providing this figure. Prepayment must be made not less than 45 days prior to the next occurring date that notice of redemption of Bonds from the proceeds of such prepayment may be given to the Trustee pursuant to the Indenture. Exhibit A - Page 9 The Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below): Bond Redemption Amount plus Redemption Premium plus Future Facilities Amount plus Defeasance Amount plus 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 below) shall be calculated as follows: Paragraph No.: For Assessor's Parcels of Developed Property, compute the Assigned Special Tax and Backup Special Tax applicable for the Assessor's Parcel to be prepaid. For Assessor's Parcels of Undeveloped Property for which a building permit has been issued, compute the Assigned Special Tax and Backup 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. (a) Divide the Assigned Special Tax computed pursuant to paragraph 1 by the total estimated Assigned Special Taxes for the entire CFD No. 2000-1 based on the Developed Property Special Taxes which could be charged in the current Fiscal Year on all expected development through buildout of CFD No. 2000-1, excluding any Assessor's Parcels which have been prepaid, and (b) Divide the Backup Special Tax computed pursuant to paragraph 1 by the total estimated Backup Special Taxes at buildout for the entire CFD No. 2000-1, excluding any Assessor's Parcels which have been prepaid. Multiply the larger quotient computed pursuant to paragraph 2(a) or 2(b) by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the "Bond Redemption Amount"). Multiply the Bond Redemption Amount computed pursuant to paragraph 3 by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the "Redemption Premium"). Compute the current Future Facilities Costs. Exhibit A- Page 10 (000 Multiply the larger quotient computed pursuant to paragraph 2(a) or 2(b) by the amount determined pursuant to paragraph 5 to compute the amount of Future Facilities Costs to be prepaid(the "Future Facilities Amount"). 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 earliest redemption date for the Outstanding Bonds. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel. Determine the Special Taxes levied on the Assessor's Parcel in the current Fiscal Year which have not yet been paid. Compute the minimum amount the CFD Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount less the Future Facilities Amount and the Administrative Fees and Expenses from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment. Add the amounts computed pursuant to paragraphs 7 and 9 and subtract the amount computed pursuant to paragraph 10 (the "Defeasance Amount"). Verify the administrative fees and expenses of No. 2000-1, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption(the "Administrative Fees and Expenses"). 13. If reserve funds for the Outstanding Bonds,if any,are at or above 100%of the reserve requirement (as defined in the Indenture) on the prepayment date, the reserve fund credit shall equal the expected reduction in the reserve requirement, if any, associated with the redemption of Outstanding Bonds as a result of the prepayment(the "Reserve Fund Credit'). No Reserve Fund Credit shall be granted if reserve funds are below 100% of the reserve requirement. 14. 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 larger quotient computed pursuant to paragraph 2(a)or 2(b)by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the "Capitalized Interest Credit"). (100 Exhibit A - Page 11 15. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to paragraphs 3,4,6, 11 and 12,less the amounts computed pursuant to paragraphs 13 and 14 (the "Prepayment Amount"). 16. From the Prepayment Amount,the amounts computed pursuant to paragraphs 3,4, 11, 13 and 14 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 6 shall be deposited into the Construction Fund. The amount computed pursuant to paragraph 12 shall be retained by CFD No. 2000-1. The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of 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 be used with the next prepayment of bonds or to make debt service payments. As a result of the payment of the current Fiscal Year's Special Tax levy as determined under paragraph 9 (above),the CFD Administrator shall remove the current Fiscal Year's Special Tax levy for such Assessor's Parcel from the County tax rolls. With respect to any Assessor's Parcel that is prepaid, the Council shall cause a suitable notice to be recorded in compliance with the Act,to indicate the prepayment of Special Taxes and the release of the Special Tax lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to (iv pay the Special Tax shall cease. Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Taxes that may be levied on Taxable Property within CFD No. 2000-1 both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds. 2. Prepayment in Part The Maximum Special Tax on an Assessor's Parcel of Developed Property or an Assessor's Parcel of 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 H.1; except that a partial prepayment shall be calculated according to the following formula: PP =PEX F. Exhibit A- Page 12 These terms have the following meaning: PP = the partial prepayment PE= the Prepayment Amount calculated according to Section H.1 F = the percent by which the owner of the Assessor's Parcel(s)is partially prepaying the Maximum Annual Special Tax. The owner of an Assessor's Parcel who desires to partially prepay the Maximum Special Tax shall notify the CFD Administrator of (i) such owner's intent to partially prepay the Maximum Special Tax, (ii) the percentage by which the Maximum Special Tax shall be prepaid,and(iii)the company or agency that will be acting as the escrow agent,if applicable. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Maximum Special Tax for an Assessor's Parcel within 30 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 Paragraph 16 of Section H.1., and(ii)indicate in the records of CFD No. 2000-1 that there has been a partial prepayment of the Maximum Special Tax and that a portion of the Maximum Special Tax equal to the outstanding percentage (1.00 - F) of the remaining Maximum Special Tax shall continue to be authorized to be levied on such Assessor's Parcel pursuant to Section D. I. TERM OF SPECIAL TAX The Special Tax shall be levied for the period not to exceed forty years commencing in Fiscal Year 2000-01. 1 hereby certify, under penalty of P9r,Jury, that the foregoing copy of Ordinance No. duly adopted by the City Council for the City of Cathedral City.,Californi.a, in a meeting thereof held on the . sday of •20-s -- and that same was posted in t Mast the three public places epeaifisd such by the said City Celina City GMit Exhibit A - Page 13