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HomeMy WebLinkAbout2016-04-12 - RESOLUTIONS - COMM DISTRICT VISTA CYN (2)RESOLUTION NO. 16-09 A RESOLUTION OF FORMATION, OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, DETERMINING THE VALIDITY OF PRIOR PROCEEDINGS AND ESTABLISHING CITY OF SANTA CLARITA COMMUNITY FACILITIES DISTRICT NO. 2016-1 (VISTA CANYON) AND APPROVING THE EXECUTION AND DELIVERY OF A FUNDING AND ACQUISITION AGREEMENT WHEREAS, the City Council (Council) of the City of Santa Clarita (City) has heretofore adopted Resolution No. 16-05 (Resolution of Intention) stating its intention to form City of Santa Clarita Community Facilities District No. 2016-1 (Vista Canyon) (CFD) pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the California Government Code (Act); and WHEREAS, a copy of the Resolution of Intention is on file with the City Clerk and incorporated herein by reference; and WHEREAS, pursuant to the Act and in accordance with applicable laws, this Council held a public hearing on the formation of the CFD and the incurring of bonded indebtedness with respect to the CFD; and WHEREAS, prior to the commencement of the public hearing, there was filed with the City Council a Community Facilities District Report prepared by Harris & Associates (CFD Report) containing a boundary map, a description, and estimate of the facilities and services and incidental expense to be financed by the CFD. The CFD Report has been reviewed by the Council and is incorporated herein and made a part of the record of the public hearing; and WHEREAS, at said hearing, all persons not exempt from the special taxes desiring to be heard on all matters pertaining to the formation of the CFD were heard, and a full and fair hearing was held; and WHEREAS, at said hearing, evidence was presented to the Council on said matters before it, and this Council, at the conclusion of said hearing is fully advised in the premises. NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby resolve as follows: SECTION 1. Pursuant to Section 53325.1(b) of the Government Code, the Council finds and determines that the proceedings prior hereto were valid and in conformity with the requirements of the Act. SECTION 2. A Community Facilities District to be designated "City of Santa Clarita Community Facilities District No. 2016-1 (Vista Canyon)" is hereby established pursuant to the Act. 1 SECTION 3. The description and map of the boundaries of the CFD on file in the City Clerk's office and as described in the Resolution of Intention and incorporated herein by reference, shall be the boundaries of the CFD. The map of the proposed boundaries of the CFD has been recorded in the Office of the County Recorder of Los Angeles County, California (Book 194 of Maps of Assessment and Community Facilities District at page 43 and as Instrument No. 2016-0380136). SECTION 4. The facilities proposed to be financed by the CFD are public infrastructure facilities and other governmental facilities with an estimated useful life of five years or longer, which the CFD is authorized by law to construct, own, or operate and that are necessary to meet increased demands placed upon the City as a result of development occurring within the proposed CFD, including but not limited to, all or a portion of up to three parking structures and a transit station and related costs including designs, inspections, professional fees, and acquisition costs (Facilities). Such Facilities need not be physically located within the CFD. The types of services proposed to be provided for and financed by the CFD include, but shall not limited to, labor, material, administration, personnel, equipment and utilities necessary to maintain and operate the Facilities (Services), if required, which Services are in addition to and do not supplant those services already provided in the territory within the CFD prior to the establishment of the CFD. The Facilities and Services are more fully described in the CFD Report presented to this Council at the public hearing. SECTION 5. Except where funds are otherwise available, it is the intention of the Council to levy annually in accordance with procedures contained in the Act (i) a special tax within the CFD sufficient to pay for the costs of financing the acquisition and/or construction of the Facilities (Special Tax for facilities), and (ii) a special tax within the CFD sufficient to pay for the costs of financing the Services (Special Tax for Services, and together with Special Tax for Facilities, the Special Tax), including the principal of and interest on two or more series of the bonds proposed to be issued to finance the Facilities and other periodic costs, the establishment and replenishment of reserve funds, the remarketing, credit enhancement and liquidity fees, the costs of administering the levy and collection of the Special Tax and all other costs of the levy of the Special Tax and issuance of the bonds, including any foreclosure proceedings, architectural, engineering, inspection, legal, fiscal, and financial consultant fees, discount fees, interest on bonds (but not to exceed two years), election costs and all costs of issuance of the bonds, including, but not limited to, fees for bond counsel, disclosure counsel, financing consultants and printing costs, and all other administrative costs of the tax levy and bond issues. The Special Tax will be secured by recordation of a continuing lien against all non- exempt real property in the CFD. In the first year in which such a Special Tax is levied, the levy shall include a sum sufficient to repay to the City all amounts, if any, transferred to the CFD pursuant to Section 53314 of the Act and interest thereon. The schedule of the rate and method of apportionment (RMA) and manner of collection of the Special Tax is described in detail in Exhibit A attached hereto and by this reference incorporated herein. The Special Tax is based upon the cost of financing the Facilities and the Services in the CFD, the demand that each parcel will place on the Facilities and the Services, and the benefit (direct and/or indirect) received by each parcel from the Facilities and the Services. The Special Tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act and as described in the RMA. In the event that a portion of the property within the CFD shall become for any reason exempt, wholly or partially, from the levy of the Special Tax, the Council shall, on behalf of the CFD, increase the levy to the extent necessary upon the remaining property within the CFD which is not delinquent or exempt in order to yield the required payments, subject to the maximum tax. Under no circumstances, however, shall the Special Tax for Facilities levied in any fiscal year against any parcel used for private residential purposes be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the CFD by more than 10 percent above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults. Furthermore, the maximum Special Tax for Facilities authorized to be levied against any parcel used for private residential purposes shall not be increased over time in excess of 2 percent per year. Special Tax for Facilities shall not be levied or collected after Fiscal Year 2060-61, except that Special Tax for Facilities that was lawfully levied in or before such final tax year and that remains delinquent may be collected in subsequent years. Pursuant to Section 53340 of the Act, the annual Special Taxes shall be collected in the same manner as ordinary ad valorem property taxes are collected or in such other manner as this Council shall determine, including without limitation, direct billing of the affected property owners and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency, as is provided for ad valorem taxes. SECTION 6. Upon recordation of a Notice of Special Tax Lien pursuant to Section 3114.5 of the Streets and Highways Code, a continuing lien to secure each levy of the Special Tax shall attach to all non-exempt real property in the CFD, and the lien with respect to the Special Tax for Facilities shall continue in force and effect until the Special Tax for Facilities obligation is prepaid or otherwise permanently satisfied and the lien canceled in accordance with law and the lien with respect to the Special Tax for Services shall continue in force and effect until collection of the Special Tax for Services by the CFD ceases. SECTION 7. Neither the proposed Special Tax for Facilities nor the Special Tax for Services to be levied in the CFD has been precluded by protests by owners of one-half or more of the land in the territory included in the CFD pursuant to Government Code Section 53324. SECTION 8. The Report is ordered to be kept on file with the minutes of these proceedings and open for public inspection. 1 SECTION 9. Pursuant to and in compliance with the provisions of Government Code Section 50075.1, the Council hereby establishes the following accountability measures pertaining to the levy by the CFD of the Special Tax for Facilities and the Special Tax for Services: a) Such Special Tax for Facilities and the Special Tax for Services shall be levied for the specific purposes set forth herein. b) The proceeds of the levy of such Special Tax for Facilities and the Special Tax for Services shall be applied only to the specific purposes set forth herein. c) The CFD shall establish an account or accounts into which the proceeds of such Special Tax for Facilities and Special Tax for Services shall be deposited. d) The Director of Administrative Services/Deputy City Manager, or his or her designee, acting for and on behalf of the CFD, shall annually file a report with the Council as required pursuant to Government Code Section 50075.3. SECTION 10. The Director of Administrative Services/Deputy City Manager, 23920 Valencia Boulevard, Santa Clarita, California 91355, or his designee, is designated to be responsible for preparing or causing to be prepared annually a current roll of Special Tax for Facilities and the Special Tax for Services levy obligations by assessor's parcel number and for estimating future Special Tax levies pursuant to Section 53340.1 of the Government Code. SECTION 11. The voting procedure with respect to the imposition of the Special Tax, incurring bonded indebtedness and establishing an appropriations limit of the CFD, shall be by hand delivery or mailed ballot election. SECTION 12. The City may accept advances of funds from any sources, including private persons or private entities, and is authorized and directed to use such funds for any authorized purpose, including any cost incurred by the City in creating the CFD. The City has entered into a deposit agreement to repay all of such funds as are not expended or committed for any authorized purpose at the time of the election on the levy of the Special Tax, if the proposal to levy such tax should fail, and to repay all of such funds advanced if the levy of the Special Tax shall be approved by the qualified electors of the CFD. SECTION 13. The City hereby approves the Funding and Acquisition Agreement, substantially in the form submitted to the City Clerk, with such revisions, amendments, and completions as shall be approved by the Mayor, the City Manager, Director of Administrative Services/Deputy City Manager, or any designee of any of them, with the advice of counsel to the City, such approval to be conclusively evidenced by the execution and delivery thereof. Any work in-kind accepted and reimbursed by the CFD contemplated by the Funding and Acquisition Agreement shall be performed or constructed as if the work had been performed or constructed under the direction and supervision, or under the authority of, the City or the CFD. 1 SECTION 14. The City Clerk is directed to certify and attest to this Resolution and to take any and all necessary acts to call, hold, canvass and certify an election or elections on the incurring of bonded indebtedness, the levy of the Special Tax, and the establishment of the appropriation limit. SECTION 15. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED this 12th day of April 2016. A O ATTEST: / CITY IDAT�: F /� ( / //,�G STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Kevin Tonoian, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the 12th day of April 2016, by the following vote: AYES: COUNCILMEMBERS: Acosta, McLean, Boydston, Weste, Kellar NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None 1 EXHIBIT A RATE AND METHOD OF APPORTIONMENT FOR CITY OF SANTA CLARITA COMMUNITY FACILITIES DISTRICT NO. 2016-1 (VISTA CANYON) A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels in City of Santa Clarita Community Facilities District No. 2016-1 (Vista Canyon) ("CFD No. 2016-1") and collected each Fiscal Year commencing in Fiscal Year 2016-17, in an amount determined by the City Council through the application of the Rate and Method of Apportionment as described below. All of the real property in CFD No. 2016-1, 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 identified on an Assessor's Parcel Map, the land area identified on the applicable final map, parcel map, condominium plan, or other recorded County parcel map. "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. 2016-1: 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 City 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. 2016-1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2016-1 or any designee thereof of complying with disclosure requirements of the City, CFD No. 2016-1 or obligated persons associated with applicable federal and state securities laws and 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. 2016-1 or any designee thereof related to an appeal of any Special Tax levy; the costs associated with the release of funds from an escrow account; and the City's annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 2016-1 for any other administrative purposes of CFD No. 2016-1, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure action to collect delinquent Special Taxes. City of Santa Clarita CFD No. 2016-1 (Vista Canyon) February 4, 2016 Rate and Method of Apportionment page 1 1 1 1 "Apartment Property" means any Assessor's Parcel for which one or more building permits have been issued for attached residential units, all of which are made available for rental, but not purchase, by the general public. "Apartment Unit" means a for -rent residential unit located on an Assessor's Parcel of Apartment Property. "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 of the County designating parcels by Assessor's Parcel number. "Assigned Special Tax for Facilities" means the Special Tax for each Land Use Class of Developed Property, as determined in accordance with Section C below. "Backup Special Tax for Facilities" 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. 2016-1 under the Act. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement for Facilities, the Special Tax Requirement for Services, as described in Section I, and providing for the levy and collection of the Special Taxes. "CFD No. 2016-1" means City of Santa Clarita Community Facilities District No. 2016-1 (Vista Canyon). "City" means the City of Santa Clarita. "Condominium Conversion Property" means any Assessor's Parcel previously classified as Apartment Property, or any portion thereof, that has converted to condominium units for purchase by the general public. "Council" means the City Council of the City of Santa Clarita, acting as the legislative body of CFD No. 2016-1. "County" means the County of Los Angeles, California. "Developed Property" means, for each Fiscal Year, all Taxable Property, exclusive of Taxable Property Owner Association Property, Taxable Public Property, and Taxable Religious Property, for which a building permit for new construction was issued prior to May 1 of the prior Fiscal Year. Notwithstanding the foregoing, (a) if a building permit is revoked, expired or otherwise cancelled and a new building permit is issued for the same property prior to the issuance of Bonds, then, the building square footage and building type as indicated on the new building permit shall thereafter be used for purposes of determining the Land Use Class, (b) if a building permit is revoked, expired or otherwise cancelled and a new building permit is issued for the City of Santa Clarita CFD No. 2016-1(Vista Canyon) Rate and Method of Apportionment February 4, 2016 Page 2 same property after the issuance of Bonds, and the amount of Assigned Special Tax for Facilities which may be levied pursuant to the new building permit is greater than the Assigned Special Tax for Facilities which may be levied pursuant to the original building permit, then the building square footage and building type as indicated on the new building permit shall thereafter be used for purposes of determining the Land Use Class, otherwise the Land Use Class pursuant to the original building permit shall continue to be used, and (c) if a building permit is revoked, expired or otherwise cancelled and no new building permit is issued for the same property, then the property will continue to be considered Developed Property and taxed based on the original building permit. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Floor Area" means the total building square footage of the building(s) located on an Assessor's Parcel, measured from outside wall to outside wall, not including space devoted to stairwells, public restrooms, lighted courts, vehicle parking and areas incident thereto, and mechanical equipment incidental to the operation of such building(s). The determination of Floor Area shall be made by reference to the building permit(s) issued for such Assessor's Parcel and/or to the appropriate records kept by the City, as reasonably determined by the CFD Administrator. "Hotel Property" means Assessor's Parcels of Developed Property for which a building permit has been issued by the City permitting the construction of a non-residential structure that constitutes a place of lodging providing sleeping accommodations and related facilities for travelers. "Hotel Room" means a hotel room or suite available for overnight lodging located on an Assessor's Parcel of Hotel Property. "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 below. "Maximum Special Tax for Facilities" means for each Fiscal Year for each Assessor's Parcel, the maximum Special Tax for Facilities, determined in accordance with Section C below, that can be levied on such Assessor's Parcel in such Fiscal Year. "Non -Residential Property" means all Assessor's Parcels of Developed Property, exclusive of Office Property, Retail Property and Hotel Property, for which a building permit(s) was issued for a non-residential use. "Office Property" means Assessor's Parcels of Developed Property for which a building permit has been issued by the City permitting the construction of one or more non-residential facilities which is primarily used for: professional or medical offices, or for any other uses that are consistent with office land use designations, as determined by the City. "Outstanding Bonds" means all Bonds which are deemed to be outstanding under the Indenture. City of Santa Clarita CFD No. 2016-1 (Vista Canyon) February 4, 2016 Rate and Method of Apportionment Page 3 1 1 1 1 1 1 "Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor's Parcel as described in Section G. "Prepayment Amount" means the amount required to prepay the Special Tax obligation for an Assessor's Parcel as described in Section G. "Property Owner Association Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 2016-1 that is owned in fee or by easement, or dedicated to, a property owner association, including any master or sub -association as of January 1 of the prior Fiscal Year. "Proportionately" means (i) with respect to the Special Tax for Facilities, (A) for Developed Property that the ratio of the actual Special Tax for Facilities levy to the Assigned Special Tax for Facilities is equal for all Assessor's Parcels of Developed Property within CFD No. 2016-1, (B) for Undeveloped Property, that the ratio of the actual Special Tax for Facilities levy per Acre to the Maximum Special Tax for Facilities per Acre is equal for all Assessor's Parcels of Undeveloped Property in CFD No. 2016-1, and (C) for Taxable Public Property, Taxable Property Owner Association Property and Taxable Religious Property, that the ratio of the actual Special Tax for Facilities levy per Acre to the Maximum Special Tax for Facilities per Acre is equal for all Assessor's Parcels of Taxable Public Property, Taxable Property Owner Association Property or Taxable Religious Property, as applicable, and (ii) with respect to the Special Tax for Services, for Developed Property that the ratio of the actual Special Tax for Services levy to the Maximum Special Tax for Services is equal for all Assessor's Parcels of Developed Property within CFD No. 2016-1. "Public Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 2016-1 that is used for rights-of-way or any other purpose and is owned by, dedicated to, or irrevocably offered for dedication to the federal government, the State of California, the City or any other public agency as of January 1 of the prior Fiscal Year; 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. In order to ensure that such property is correctly classified as Public Property, the owner of such property shall provide the CFD Administrator with a copy of any applicable documents. "Religious Property" means, for each Fiscal Year, all property within the boundaries of CFD No. 2016-1 which (i) is either (a) used primarily as a place of worship or (b) vacant land or land under construction that is intended to be used primarily as a place of worship as determined by the CFD Administrator; and (ii) is exempt from ad valorem property taxes because it is owned by a religious organization as of January 1 of the prior Fiscal Year. 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, not including Apartment Property or Condominium Conversion Property, for which a building permit has been issued for purposes of constructing one or more for -sale residential dwelling units. City of Santa Clarita CFD No. 2016-1(Vista Canyon) Rate and Method of Apportionment February 4, 2016 Page 4 "Retail Property" means Assessor's Parcels of Developed Property for which a building permit has been issued by the City permitting the construction of one or more non-residential facilities which is primarily used for: the sale of general merchandise, hard goods, personal services, and other items directly to consumers, or other uses that are consistent with retail land use designations, as determined by the City. "Special Tax" means, as applicable, the Special Tax for Facilities or the Special Tax for Services. "Special Tax for Facilities" means the special tax to be levied in each Fiscal Year on each Assessor's Parcel of Taxable Property by CFD No. 2016-1 pursuant to the Act to fund the Special Tax Requirement for Facilities. "Special Tax Requirement for Facilities" means for each Fiscal Year, that amount required for CFD No. 2016-1 to pay the sum of: (i) debt service on all Outstanding Bonds or Bonds expected to be issued in such Fiscal Year; (ii) periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds; (iii) Administrative Expenses related to the Special Tax for Facilities; (iv) any amounts required to establish a reserve fund for Bonds expected to be issued in such Fiscal Year or replenish any reserve funds established by the Indenture for any Outstanding Bonds to the extent such replenishment has not been included in the computation of the Special Tax Requirement for Facilities in a previous Fiscal Year; and (v) any amounts required for construction of facilities eligible to be constructed or acquired by CFD No. 2016-1 under the Act, provided that such amounts do not increase the Special Tax for Facilities levied on Undeveloped Property, Taxable Public Property, Taxable Religious Property, and Taxable Property Owners' Association Property. In arriving at the Special Tax Requirement for Facilities, the CFD Administrator shall take into account the reasonably anticipated delinquent Special Tax for Facilities based on the delinquency rate for Special Tax for Facilities levied in the previous Fiscal Year and shall give a credit for funds available to reduce the annual Special Tax for Facilities levy. "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No. 2016-1 which are not exempt from the Special Tax for Facilities 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, fiscal agent, or paying agent under the Indenture. "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. City of Santa Clarita CFD No. 2016-1 (Vista Canyon) February 4, 2016 Rate and Method of Apportionment Page 5 1 1 1 1 1 1 "Zone" means any one of the separate geographic areas within CFD No. 2016-1 designated on Exhibit A herein as: Zone 1 or Zone 2. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, commencing with Fiscal Year 2016-17, each Assessor's Parcel of Taxable Property within Zone 1 and each Assessor's Parcel of Taxable Property within Zone 2 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 Tax for Facilities in accordance with the rate and method of apportionment determined pursuant to Sections C and D below. The Assigned Special Tax for Facilities for each Assessor's Parcel of Developed Property shall be based on the Land Use Class for such Assessor's Parcel. C. MAXIMUM SPECIAL TAX FOR FACILITIES 1. Developed Property a. Maximum Special Tax for Facilities The Maximum Special Tax for Facilities 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 for Facilities or (ii) the amount derived by application of the Backup Special Tax for Facilities for the Zone in which such Assessor's Parcel is located. b. Assigned Special Tax for Facilities The Assigned Special Tax for Facilities for each Land Use Class for Fiscal Year 2016-17 is shown below in Table 1. TABLE 1 Zone 1 and Zone 2 For Fiscal Year 2016-17 City of Santa Clarita CFD No. 2016-1 (Vista Canyon) Rate and Method of Apportionment February 4, 2016 Page 6 Assigned Special Tax for Facilities for Developed Property Land Use Description Assigned,Special Tax Class for Facilities $667.00 per 1 Apartment Property Apartment Unit $1.15 per square 2 Office Property foot of Floor Area $3.00 per square 3 Retail Property foot of Floor Area $1.15 per square 4 Non -Residential Property foot of Floor Area $300.00 per 5 Hotel Property Hotel Room 6 Condominium Conversion Property $667.00 per Unit c. Multiple Land Use Classes In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Class. In such cases, the Acreage of the Assessor's Parcel shall be allocated between the different Land Use Classes based on the site plan or other available information. The Maximum Special Tax for Facilities that can be levied on such Assessor's Parcel shall be the sum of the Maximum Special Tax for Facilities that can be levied on each type of property located on that Assessor's Parcel. d. Backup Special Tax for Facilities The Backup Special Tax for Facilities for Assessor's Parcels of Developed Property in Zone 1 shall equal $46,721 per Acre for Fiscal Year 2016-17, and the Backup Special Tax for Facilities for Assessor's Parcels of Developed Property in Zone 2 shall equal $115,908 per Acre for Fiscal Year 2016-17. City of Santa Clarita CFD No. 2016-1 (Vista Canyon) February 4, 2016 Rate and Method of Apportionment Page 7 1 1 1 1 1 e. Increase in the Assigned Special Tax for Facilities and Backup Special Tax for Facilities On each July 1, commencing on July 1, 2017, the Assigned Special Tax for Facilities and the Backup Special Tax for Facilities for Developed Property shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year. 2. Taxable Property Owner Association Property, Taxable Public Property, Taxable Religious Property, and Undeveloped Property a. Maximum Special Tax for Facilities For Fiscal Year 2016-17, the Maximum Special Tax for Facilities for Taxable Property Owner Association Property, Taxable Public Property, Taxable Religious Property, and Undeveloped Property shall equal $46,721 per Acre for Assessor's Parcels in Zone 1 and $115,908 per Acre for Assessor's Parcels in Zone 2. b. Increase in the Maximum Special Tax for Facilities On each July 1, commencing on July 1, 2017, the Maximum Special Tax for Facilities for Taxable Property Owner Association Property, Taxable Public Property, Taxable Religious Property, and Undeveloped Property shall be increased 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 FOR FACILITIES Commencing with Fiscal Year 2016-17 and for each following Fiscal Year, the City shall levy the Special Tax for Facilities until the amount of Special Tax for Facilities levied equals the Special Tax Requirement for Facilities. The Special Tax for Facilities shall be levied each Fiscal Year as follows: 1. Apportionment of Special Tax for Facilities prior to Completion of Development First: The Special Tax for Facilities shall be levied Proportionately on each Assessor's Parcel of Developed Property within Zone 1 at up to 100% of the applicable Assigned Special Tax for Facilities as needed to satisfy the Special Tax Requirement for Facilities; Second: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first step has been completed, the Special Tax for Facilities shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property within Zone 1 at up to 100% of the Maximum Special Tax for Facilities for Undeveloped Property; Third: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first two steps have been completed, then the Special Tax for Facilities shall be levied Proportionately on each Assessor's Parcel of Developed Property within Zone 2 at up to 100% of the applicable Assigned Special Tax for Facilities; Fourth: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first three steps have been completed, the Special Tax for Facilities shall be levied City of Santa Clarita CFD No. 2016-1 (Vista Canyon) Rate and Method of Apportionment February 4, 2016 Page 8 Proportionately on each Assessor's Parcel of Undeveloped Property within Zone 2 at up to 100% of the Maximum Special Tax for Facilities for Undeveloped Property; Fifth: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first four steps have been completed, then the levy of the Special Tax for Facilities on each Assessor's Parcel of Developed Property in Zone 1 and each Assessor's Parcel of Developed Property in Zone 2 for which the Maximum Special Tax for Facilities is determined through the application of the Backup Special Tax for Facilities shall be increased Proportionately from the Assigned Special Tax for Facilities up to the Maximum Special Tax for Facilities for each such Assessor's Parcel; Sixth: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first five steps have been completed, then the Special Tax for Facilities shall be levied Proportionately on each Assessor's Parcel of Taxable Property Owner Association Property or Taxable Religious Property at up to the Maximum Special Tax for Facilities for Taxable Property Owner Association Property or Taxable Religious Property. Seventh: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first six steps have been completed, then the Special Tax for Facilities shall be levied Proportionately on each Assessor's Parcel of Taxable Public Property at up to the Maximum Special Tax for Facilities for Taxable Public Property. 2. Apportionment of Special Tax for Facilities upon Completion of Development Once the CFD Administrator has determined that there is no Undeveloped Property in both Zone 1 and Zone 2, the Special Tax for Facilities shall be levied each Fiscal Year as follows: First: The Special Tax for Facilities shall be levied Proportionately on each Assessor's Parcel of Developed Property within Zone 1 and Zone 2 at up to 100% of the applicable Assigned Special Tax for Facilities as needed to satisfy the Special Tax Requirement for Facilities; Second: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first step has been completed, then the levy of the Special Tax for Facilities on each Assessor's Parcel of Developed Property in Zone 1 and each Assessor's Parcel of Developed Property in Zone 2 for which the Maximum Special Tax for Facilities is determined through the application of the Backup Special Tax for Facilities shall be increased Proportionately from the Assigned Special Tax for Facilities up to the Maximum Special Tax for Facilities for each such Assessor's Parcel; Third: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first two steps have been completed, then the Special Tax for Facilities shall be levied Proportionately on each Assessor's Parcel of Taxable Property Owner Association Property or Taxable Religious Property at up to the Maximum Special Tax for Facilities for Taxable Property Owner Association Property or Taxable Religious Property; Fourth: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first three steps have been completed, then the Special Tax for Facilities shall be City of Santa Clarita CFD No. 2016-1(Vista Canyon) February 4, 2016 Rate and Method of Apportionment page 9 J 1 1 levied Proportionately on each Assessor's Parcel of Taxable Public Property at up to the Maximum Special Tax for Facilities for Taxable Public Property. Notwithstanding the above, under no circumstances will the Special Tax for Facilities levied in a Fiscal Year against any Assessor's Parcel of Apartment Property or Condominium Conversion Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent (10%) above the amount that would have been levied in that Fiscal Year as a consequence of delinquency or default by the owner of any other Assessor's Parcel within CFD No. 2016-1. To the extent that the levy of the Special Tax for Facilities on Residential Property is limited by the provision in the previous sentence, the levy of the Special Tax for Facilities on all other Assessor's Parcels shall continue in equal percentages at up to 100% of the Maximum Special Tax for Facilities. E. EXEMPTIONS No Special Tax for Facilities shall be levied on any Assessor's Parcels of Residential Property. In addition, the CFD Administrator shall classify Property Owner Association Property, Public Property, and Religious Property as exempt from the Special Tax for Facilities, provided that no such classification would reduce the Acreage of Taxable Property to less than 14.75 Acres in Zone 1 and 10.60 Acres in Zone 2. Special Taxes for Facilities shall not be levied on any Assessor's Parcel, or portion thereof, not within Zone 1 or Zone 2. Tax-exempt status will be assigned to Assessor's Parcels by the CFD Administrator in the chronological order in which such Assessor's Parcels become 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 and it will thereafter be classified as Developed Property or Undeveloped Property in accordance with Section D above. Property Owner Association Property, Public Property, or Religious Property that is not exempt from Special Tax for Facilities under this section shall be subject to the levy of the Special Tax for Facilities and shall be taxed Proportionately as part of the sixth and seventh steps, respectively, in Section D above, at up to 100% of the applicable Maximum Special Tax for Facilities for Taxable Property Owner Association Property, Taxable Public Property, or Taxable Religious Property. F. MANNER OF COLLECTION The Special Tax for Facilities shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 2016-1 may directly bill the Special Tax for Facilities, may collect the Special Tax for Facilities 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. Tenders of Bonds may be accepted for payment of the Special Tax for Facilities upon the terms and conditions established by the Act and permitted by CFD No. 2016-1. The use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the Council. City of Santa Clarita CFD No. 2016-1 (Vista Canyon) Rate and Method of Apportionment February 4, 2016 Page 10 G. PREPAYMENT OF SPECIAL TAX FOR FACILITIES The following definitions apply to this Section G: "CFD Public Facilities Cost" means either $29,000,000 million in 2016 dollars, which shall increase by the Construction Inflation Index on July 1, 2017, 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. 2016-1 under the authorized bonding program for CFD No. 2016-1, or (ii) shall be determined by the Council concurrently with a covenant that it will not issue any more Bonds to be supported by the Special Tax for Facilities 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, for a Fiscal Year, 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 Cost minus (i) public facility costs previously paid from the Construction Fund, (ii) moneys currently on deposit in the Construction Fund, and (iii) moneys currently on deposit in an escrow fund that are expected to be available to finance facilities costs. "Outstanding Bonds" means all Previously Issued Bonds which are deemed to be 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. 2016-1 prior to the date of prepayment. 1. Prepayment in Full The obligation to pay the Special Tax for Facilities for an Assessor's Parcel may be prepaid and permanently satisfied as described herein; provided that there are no delinquent amounts of Special Tax for Facilities 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 for Facilities obligation shall provide the CFD 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 for 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. City of Santa Clarita CFD No. 2016-1 (Vista Canyon) February 4, 2016 Rate and Method of Apportionment Page 11 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 equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount shall be calculated as follows: Paragraph No.: 1. For Assessor's Parcels of Developed Property, compute the Assigned Special Tax for Facilities and Backup Special Tax for Facilities 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 for Facilities and Backup Special Tax for Facilities 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. For Assessor's Parcels of Undeveloped Property for which a building permit has not been issued, Taxable Property Owner Association Property, Taxable Public Property, or Taxable Religious Property, compute the Maximum Special Tax for Facilities for the Assessor's Parcel to be prepaid. 2. (a) For an Assessor's Parcel of Developed Property or Undeveloped Property for which a building permit has been issued (i) Divide the Assigned Special Tax for Facilities computed pursuant to paragraph 1 by the total estimated Assigned Special Tax for Facilities for the entire CFD No. 2016-1 based on the Developed Property Special Tax for Facilities which could be charged in the current Fiscal Year on all expected development through buildout of CFD No. 2016-1, excluding any Assessor's Parcels which have been prepaid, and (ii) Divide the Backup Special Tax for Facilities computed pursuant to paragraph 1 by the total estimated Backup Special Tax for Facilities for the entire CFD No. 2016-1 based on the Backup Special Tax for Facilities which could be charged in the current Fiscal Year on all expected development through buildout of CFD No. 2016-1, excluding any Assessor's Parcels which have been prepaid. (b) For Assessor's Parcels of Undeveloped Property for which a building permit has not been issued, Taxable Property Owner Association Property, Taxable Public Property, or Taxable Religious Property, divide the Maximum Special Tax for Facilities computed pursuant to paragraph 1 by the total estimated Maximum Special Tax for Facilities for the entire CFD No. 2016-1 based on the Maximum Special Tax for Facilities which could be charged in the current Fiscal Year on all expected development through buildout of CFD No. 2016-1, excluding any Assessor's Parcels which have been prepaid. City of Santa Clarita CFD No. 2016-1 (Vista Canyon) February 4, 2016 Rate and Method of Apportionment Page 12 3. Multiply the larger of quotient (i) and (ii) computed pursuant to paragraph 2(a) for Assessor's Parcels of Developed Property or Undeveloped Property for which a building permit has been issued, or the quotient computed pursuant to paragraph 2(b) for Assessor's Parcels of Undeveloped Property for which a building permit has not been issued, Taxable Property Owner Association Property, Taxable Public Property, or Taxable Religious Property, by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the "Bond Redemption Amount"). 4. 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"). 5. Compute the current Future Facilities Costs. 6. Multiply the larger of quotient (i) and (ii) computed pursuant to paragraph 2(a) for Assessor's Parcels of Developed Property or Undeveloped Property for which a building permit has been issued, or the quotient computed pursuant to paragraph 2(b) for Assessor's Parcels of Undeveloped Property for which a building permit has not been issued, Taxable Property Owner Association Property, Taxable Public Property, or Taxable Religious Property, by the amount determined pursuant to paragraph 5 to compute the amount of Future Facilities Costs to be prepaid (the "Future Facilities Amount"). 7. 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. 8. Confirm that no Special Tax for Facilities delinquencies apply to such Assessor's Parcel. 9. Determine the amount of Special Tax for Facilities levied on the Assessor's Parcel in the current Fiscal Year which have not yet been paid. 10. 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. 11. Add the amounts computed pursuant to paragraphs 7 and 9 and subtract the amount computed pursuant to paragraph 10 (the "Defeasance Amount"). 12. Verify the administrative fees and expenses of CFD No. 2016-1, 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. 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 City of Santa Clarita CFD No. 2016-1(Vista Canyon) February 4, 2016 Rate and Method of Apportionment Page 13 1 1 (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) 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. 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 of quotient (i) and (ii) computed pursuant to paragraph 2(a) for Assessor's Parcels of Developed Property or Undeveloped Property for which a building permit has been issued, or the quotient computed pursuant to paragraph 2(b) for Assessor's Parcels of Undeveloped Property for which a building permit has not been issued, Taxable Property Owner Association Property, Taxable Public Property, or Taxable Religious Property, by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the "Capitalized Interest Credit"). 15. The Special Tax for Facilities 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. 2016-1. 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 for Facilities levy as determined under paragraph 9 (above), the CFD Administrator shall remove the current Fiscal Year's Special Tax for Facilities levy for such Assessor's Parcel from the County tax rolls. With respect to any Assessor's Parcel for which the Special Tax for Facilities is prepaid, the City shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Special Tax for Facilities and the release of the Special Tax for Facilities lien on such Assessor's Parcel, and the obligation to pay the Special Tax for Facilities for such Assessor's Parcel shall cease. Notwithstanding the foregoing, no prepayment will be allowed unless (i) the amount of Maximum Special Tax for Facilities that may be levied on Taxable Property (based on expected development at build out), after the proposed prepayment, less expected Administrative Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments on all Outstanding Bonds (excluding Bonds to be redeemed by such prepayment and all prior prepayments) in each future Fiscal Year and (ii) the amount of City of Santa Clarita CFD No. 2016-1 (Vista Canyon) February 4, 2016 Rate and Method of Apportionment Page 14 Maximum Special Tax for Facilities that may be levied on non -delinquent Taxable Property (based on expected development at build out) after the proposed prepayment, less expected Administrative Expenses, shall be at least equal to the regularly scheduled annual interest and principal payments on all Outstanding Bonds (excluding Bonds to be redeemed by such prepayment and all prior prepayments) in each future Fiscal Year. 2. Prepayment in Part The Special Tax for Facilities for an Assessor's Parcel of Taxable Property may be partially prepaid. The amount of the prepayment shall be calculated as in Section G.1; except that a partial prepayment shall be calculated according to the following formula: PP = ((PE -AE) x F] + AE These terms have the following meaning: AE = the Administrative Fees and Expenses PP = the partial prepayment amount PE = the Prepayment Amount calculated according to Section G.1 F = the percentage by which the owner of the Assessor's Parcel is partially prepaying the Special Tax for Facilities. The owner of any Assessor's Parcel who desires such prepayment shall notify the CFD Administrator of such owner's intent to partially prepay the Special Tax for Facilities and the percentage by which the Special Tax for Facilities shall be prepaid. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax for Facilities for an Assessor's Parcel within thirty (30) days of the request and may charge a reasonable fee for providing this service. With respect to any Assessor's Parcel for which the Special Tax for Facilities is partially prepaid, CFD No. 2016-1 shall (i) distribute the funds remitted to it according to Section G.1, and (ii) indicate in the records of CFD No. 2016-1 that there has been a partial prepayment of the Special Tax for Facilities and that a portion of the Special Tax for Facilities with respect to such Assessor's Parcel, equal to the outstanding percentage (1.00 - F) of the Assigned Special Tax for Facilities, Backup Special Tax for Facilities and Maximum Special Tax for Facilities, shall continue to be levied on such Assessor's Parcel pursuant to Section D. Notwithstanding the foregoing, no partial prepayment will be allowed unless (i) the amount of Maximum Special Tax for Facilities that may be levied on Taxable Property (based on expected development at build out), after the proposed partial prepayment, less expected Administrative Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments on all Outstanding Bonds (excluding Bonds to be redeemed by such prepayment and all prior prepayments) in each future Fiscal Year and (ii) the amount of Maximum Special Tax for Facilities that may be levied on non -delinquent Taxable Property (based on expected development at build out) after the proposed partial prepayment, less expected Administrative Expenses, shall be at least equal to the regularly scheduled annual interest and principal payments on all Outstanding Bonds (excluding Bonds to be redeemed by such prepayment and all prior prepayments) in each future Fiscal Year. City of Santa Clarita CFD No. 2016-1(Visto Canyon) February 4, 2016 Rate and Method of Apportionment Page 15 H. TERM OF SPECIAL TAX FOR FACILITIES The Special Tax for Facilities shall be levied until the final maturity of the last series of Bonds, provided that that the Special Tax for Facilities shall not be levied later than Fiscal Year 2060-61. I. SPECIAL TAX FOR SERVICES 1. Definitions The following definitions apply to this Section I: "Annual Escalation Factor" means the greater of (i) annual percent increase, as of December 2016 and each December thereafter, in the Bureau of Labor Statistics' Consumer Price Index for All Urban Consumers (CPI -U) for the Los Angeles -Riverside -Orange County area and (ii) 0%. "Maintenance Costs" means for each Fiscal Year, the estimated costs to maintain Parking Structure 1 and Parking Structure 2 which have been accepted and maintained by the City or are reasonably expected to be accepted and maintained by the City during the current Fiscal Year, "Maximum Special Tax for Services" means for each Fiscal Year and for each Assessor's Parcel, the maximum Special Tax for Services that can be levied by CFD No. 2016-1 on such Assessor's Parcel. "Operating Fund" means a fund that shall be maintained for CFD No. 2016-1 for any Fiscal Year to pay for the actual costs of maintenance related to the Service Area, and the applicable Administrative Expenses. "Operating Fund Balance" means the amount of funds in the Operating Fund at the end of the preceding Fiscal Year. "Parking Structure 1" means the parking structure known as the Cooper Street Parking Garage. "Parking Structure 2" means the parking structure known as the Vista Canyon Boulevard Parking Garage. "Service Area" means parking structure maintenance within the boundary of CFD No. 2016-1, which may include, but is not limited to: automated gate maintenance, parking space restriping, concrete repair and elevator maintenance. "Special Tax for Services" means any of the special taxes authorized to be levied within CFD No. 2016-1 pursuant to the Act to fund the Special Tax Requirement for Services. "Special Tax Requirement for Services" means for each Fiscal Year, the amount determined for CFD No. 2016-1 equal to (i) the Maintenance Costs, (ii) Administrative Expenses related to the Special Tax for Services and (iii) anticipated delinquent Special Taxes for Services based on the delinquency rate in CFD No. 2016-1 for the previous Fiscal Year, less (iv) the Operating Fund Balance, as determined by the CFD Administrator. City of Santa Clarita CFD No. 2016-1(Vista Canyon) February 4, 2016 Rate and Method of Apportionment Page 16 2. Maximum Special Tax for Services Developed Property Land Use Classes, as identified in Section B, shall be used in assigning the Maximum Special Tax for Services amount for each Assessor's Parcel of Developed Property within CFD No. 2016-1 as shown in Table 2 below. TABLE 2 Zone 1 and Zone 2 For Fiscal Year 2016-17 Maximum Special Tax for Services for Developed Property Land Maximum Special Tax for Use Description Services Class $120.50 1 Apartment Property per Apartment Unit $0.21 per square foot 2 Office Property of Floor Area $0.54 per square foot 3 Retail Property of Floor Area $0.21 per square foot 4 Non -Residential Property of Floor Area $54.18 per 5 Hotel Property Hotel Room 6 Condominium Conversion Property $120.50 per Unit On each July 1, commencing on July 1, 2017, the Maximum Special Tax for Services shall be increased by an amount equal to the Annual Escalation Factor multiplied by the Maximum Special Tax for Services in effect for the previous Fiscal Year. 3. Method of Apportionment of the Special Tax for Services Commencing the Fiscal Year following the determination that a property owner association is not maintaining Parking Structure 1 or Parking Structure 2 in accordance with a maintenance agreement with the City and for each subsequent Fiscal Year for which a property owner association is not maintaining Parking Structure 1 or Parking Structure 2, the City shall levy Special Taxes for Services Proportionately on all Developed Property within CFD No. 2016-1, up to the applicable Maximum Special Tax for Services to fund the Special Tax Requirement for Services. City of Santa Clarita CFD No. 2016-1 (Vista Canyon) February 4, 2016 Rate and Method of Apportionment Page 17 1 1 1 4. Duration of the Special Tax for Services The Special Tax for Services shall be levied in perpetuity to fund the Special Tax Requirement for Services, unless no longer required as determined at the sole discretion of the Council. 5. Exemptions from the Special Tax for Services No Special Tax for Services shall be levied on Residential Property, Undeveloped Property, Property Owner Association Property, Public Property and Religious Property. 6. Manner of Collection of the Special Tax for Services The Special Tax for Services shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2016-1 may collect the Special Tax for Services at a different time or in a different manner, including direct billing, if necessary to meet its funding requirements. 7. Prepayment of the Special Tax for Services The Special Tax for Services may not be prepaid. J. APPEALS AND INTERPRETATIONS Any landowner who feels that the amount of the Special Taxes levied on their Assessor's Parcel is in error may submit a written appeal to the CFD Administrator. The CFD Administrator shall review the appeal. If the City concurs, no refund shall be given; however, the amount of the Special Taxes levied shall be appropriately reduced in the following Fiscal Year(s). The CFD Administrator may interpret this Rate and Method of Apportionment for purposes of clarifying any ambiguities and make determinations relative to the annual administration of the Special Taxes and any landowner appeals. City of Santa Clarita CFD No. 2016-1 (Vista Canyon) February 4, 2016 Rate and Method of Apportionment Page 18 EXHIBIT A CITY OF SANTA CLARITA COMMUNITY FACILITY DISTRICT NO. 2016-1 (VISTA CANYON) TAX ZONE DESIGNATION w .Z Legend [Z-36 CFD Boundary QTax Zone Boundary TTM 69164 (4/26/11) City of Santa Clarita CFD No. 2016-1(Vista Canyon) February 4, 2016 Rate and Method of Apportionment Page 19 1 1