HomeMy WebLinkAbout1999-11-30 - ORDINANCES - SC BUS PARK SPECIAL TAX CFD (2)ORDINANCENO. c'FD 99-1-1
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA CLARITA, CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 99-1
(SANTA CLARITA BUSINESS PARK)
AUTHORIZING THE LEVY OF A SPECIAL TAX
WHEREAS, on September 28, 1999, the City Council (the "Council') of the City of
Santa Clarita, California (the "City") adopted Resolution No. 99-164 stating its
intention to form the City of Santa Clarita Community Facilities District No. 99-1
(Santa Clarita Business Park) (the "CFD") pursuant to the Mello -Roos Community
Facilities Act of 1982, as amended, (the "Act"); and
WHEREAS, on September 28, 1999, the Council also adopted Resolution No. 99-165,
stating its intention and the necessity to incur bonded indebtedness in the aggregate
amount not to exceed $33,000,000, to be issued by the CFD for the purpose of
financing the purchase, construction, expansion, or rehabilitation of certain real and
other tangible property with an estimated useful life of five years or longer,
including public infrastructure facilities which the City or the CFD is authorized by
law to construct, own, or operate, which are necessary to meet increased demands
placed upon the City as a result of development or rehabilitation occurring within
the CFD (the "Facilities"), to serve the area within the CFD; and
WHEREAS, notice was published, as required by law, relative to the intention of the
Council to form the CFD and to incur bonded indebtedness in the amount not to
exceed $33,000,000 within the boundaries of the CFD; and
WHEREAS, on November 9, 1999, this Council held a noticed public hearing as
required by law relative to the determination to proceed with the formation of the
CFD, the rate and method of apportionment and manner of collection of the special
tax to be levied within the CFD to pay the principal and interest on the proposed
bonded indebtedness of the CFD and relative to the necessity for authorizing the
bonds, the purpose for which the bonds are to be issued, the amount of the proposed
debt, the maximum term of the bonds and the maximum annual rate of interest to
be paid; and
WHEREAS, at said hearing all persons desiring to be heard on all matters
pertaining to the formation of the CFD and the incurring of bonded indebtedness by
the CFD were heard, and a full and fair hearing was held; and
WHEREAS, the Council, subsequent to said hearing, adopted Resolution No.
CFD 99-1-1, determining the validity of prior proceedings relative to the formation
of the CFD, amended the CFD boundaries, established the CFD and authorized the
levy of a special tax within the CFD; and
ORDINANCE NO. CFD 99-1-1
November 30, 1999 - Page 2
WHEREAS, the Council subsequent to said hearing adopted Resolution No.
CFD 99-1-2, which called an election within the CFD for November 9, 1999 on the
proposition of incurring bonded indebtedness, levying a special tax and setting an
appropriations limit; and
WHEREAS, on November 9, 1999, an election was held within the CFD in which the
eligible electors approved by more than two-thirds vote the proposition of incurring
bonded indebtedness, levying a special tax, and setting an appropriations limit for
the CFD;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA CLARITA,
ACTING AS THE LEGISLATIVE BODY OF THE CITY OF SANTA CLARITA
COMMUNITY FACILITIES DISTRICT NO. 99-1 (SANTA CLARITA BUSINESS
PARK), does ordain as follows:
SECTION 1. A special tax is levied within the boundaries of each CFD pursuant to
the formulas set forth in Exhibit "A" attached hereto and incorporated by reference
in an amount necessary to pay all of the costs of providing the Facilities, periodic
costs, and costs of the tax levy and collection, and all other costs, including amounts
payable with respect to the bonded indebtedness.
SECTION 2. This legislative body hereby authorizes the Director of Administrative
Services, on or before August 1 of each year, to determine the specific special tax
rates and amounts to be levied for the current fiscal year in accordance with the rate
and method of apportionment as provided in section 53340 of the Act, and to prepare
or cause to be prepared a list of all nonexempt parcels within the CFD and the
specific amount of the Special Tax for each such parcel, except that the special tax
rates to be levied shall not exceed the maximum rates set forth in Exhibit "A".
SECTION 3. All of the collections of the special taxes shall be used as provided for
in the Act and Resolution No. 99-164 of the Council.
SECTION 4. The above authorized special taxes 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 and sale in cases of delinquency and provided for
ad valorem taxes.
SECTION 5. The Mayor shall sign this Ordinance, and the City Clerk shall attest to
such signature. The City Clerk is directed to cause the title and summary or text of
this ordinance, together with the vote thereon, to be published within fifteen (15)
days after its passage at least once in a newspaper of general circulation published
and circulated within the territorial jurisdiction of the City, and to post at the main
office of the City a certified copy of the full text of the adopted Ordinance along with
the names of the Councilmembers voting for and against the Ordinance.
ORDINANCE NOCFT Qg-1-1
November 30, 1999 - Page 3
SECTION 6. This Ordinance, relating to the levy of the special tax, takes effect and
shall be in force immediately after the date of final passage.
INTRODUCED at a regular meeting of the City Council of the City of Santa Clarita
held on the qt -.h day ofNnvPmhF r . 1999; and thereafter,
PASSED, APPROVED AND ADOPTED this in+>7 day of NncrPmhP,r1999.
MAYO /Z�if22�
ATTEST:
CITY CLERK
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES) ss
CITY OF SANTA CLARITA )
I, Sharon L. Dawson, CMC, City Clerk of the City of Santa Clarita do hereby certify
that the foregoing Ordinance No. 1 _1 was regularly introduced and placed upon its
first reading at a regular meeting of the City Council on thegj�b-- day of N05
1999. That thereafter, said Ordinance was duly passed and adopted at a regular
meeting of the City Council on the -n+r_ day ofNnv" , 1999 by the following vote,
to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
a
w=d1\gv .Mac.dw
Heidt, Ferry, Weste, Darcy
None
Klajic
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EXHIBIT A
RATE AND METHOD OF APPORTIONMENT
RATE AND METHOD OF APPORTIONMENT FOR
CITY OF SANTA CLARITA
COMMUNITY FACILITIES DISTRICT NO. 99-1
(SANTA CLARITA BUSINESS PARK)
A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels in the City of Santa
Clarita Community Facilities District No. 99-1 (Santa Clarita Business Park) ("CFD No. 99-1 ") and
collected each Fiscal Year commencing in Fiscal Year 2000-2001, in an amount determined by the
City Council of the City of Santa Clarita, through the application of the Rate and Method of
Apportionment as described below. All of the real property in CFD No. 99-1, unless exempted by
law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner
herein provided.
V.11
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.
"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. 99-1: 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. 99-1 or any designee thereof of complying with arbitrage
rebate requirements; the costs to the City, CFD No. 99-1 or any designee thereof of
complying with City, CFD No. 99-1 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. 99-1 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. Administrative
Expenses shall also include amounts estimated or advanced by the City or CFD No. 99-1 for
any other administrative purposes of CFD No. 99-1, 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.
City of Santa Clarita September 14, 1999
CFD No. 99-1 (Santa Clarita Business Park) Page 1
"Assessor's Parcel Map" means an official map of the County 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. 99-1 under the Act.
"CFD No. 99-1" means the City of Santa Clarita Community Facilities District No. 99-1
(Santa Clarita Business Park).
"City" means the City of Santa Clarita.
"Council" means the city council of the City.
"County" means the County of Los Angeles.
"Developed Property" means, for each Fiscal Year, all Taxable Property, exclusive of
Taxable Public Property, for which a building permit for new construction was issued prior
to May 1 of the prior Fiscal Year.
"Finance Director" the Finance Director of the City or his or her designee.
"Fiscal Year" means the period starting July 1 and ending on the following June 30.
"Indenture" means the indenture, fiscal agent agreement, resolution or other instrument
pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to
time, and any instrument replacing or supplementing the same.
"Land Use Class" means any of the classes listed in Table 1 below.
"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 Floor Area" means the total building square footage of the non-
residential building(s) located on an Assessor's Parcel, measured from outside wall to
outside wall, exclusive of overhangs, porches, patios, carports, or similar spaces attached to
the building but generally open on at least two sides. The determination of Non -Residential
Floor Area shall be made by reference to the building permit(s) issued for such Assessor's
Parcel
"Non -Residential Property" means all Assessor's Parcels of Developed Property for which
a building permit was issued for a non-residential use.
City of Santa Clarita September 14, 1999
CFD No. 99-1 (Santa Clarita Business Park) Paee 2
"Outstanding Bonds" means all Bonds which are deemed to be outstanding under the
Indenture.
"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.
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.
"Public Property" means any property within the boundaries of CFD No. 99-1 that is (i)
used for rights-of-way or any other purpose and is owned by or irrevocably offered for
dedication to the federal government, the State of California, the County, the City or any
other public agency or (ii) encumbered by an unmanned utility easement making impractical
its utilization for other than the purpose set forth in the easement, 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.
"Residential Property" means all Assessor's Parcels of Developed Property for which a
building permit has been issued for purposes of constructing one or more residential
dwelling units.
"Resolution of Formation" means the resolution of the City Council of the City, adopted
under the Mello -Roos Act to establish CFD No 99-1.
"Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor's
Parcel of Taxable Property to fund the Special Tax Requirement.
"Special Tax Requirement" means that amount required in any Fiscal Year for CFD No.
99-1 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
Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve
funds for all Outstanding Bonds; (v) pay directly for construction of facilities described in the
Resolution of Formation required by Section 53325.1 of the Act, if any; and (vi) pay for
reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special
Taxes levied in the previous Fiscal Year.
"State" means the State of California.
"Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No.
99-1 which are not exempt from the Special Tax pursuant to law or Section E below.
"Taxable Public Property" means all Assessor's Parcels of Public Property that are not
exempt pursuant to Section E below.
"Trustee" means the trustee or fiscal agent under the Indenture.
"Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as
Developed Property or Taxable Public Property.
City of Santa Clarita September 14, 1999
CFD No. 99-1 (Santa Clarita Business Park) Paze 3
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, all Taxable Property within CFD No. 99-1 shall be classified as Developed
�- Property, Taxable Public 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.
The Assigned Special Tax for Non -Residential Property shall be based on the amount of
Non -Residential Floor Area on the Assessor's Parcel. The Assigned Special Tax for
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 Fiscal Year 2000-2001 Assigned Special Tax for each Land Use Class is
shown below in Table 1.
TABLE 1
Assigned Special Taxes for Developed Property in
Community Facilities District No. 99-1 (Santa Clarita Business Park)
(Fiscal Year 2000-2001)
Non -Residential PropertyI $0.6566 per square foot of Non -Residential
Floor Area
2 1 Residential Property 1 $11,767 per Acre
C. Increase in the Assigned Special Tax
On each July 1, commencing on July 1, 2001, the Assigned Special shall be
increased by an amount equal to two percent (2%) of the Assigned Special
Tax for the previous Fiscal Year.
City of Santa Clarita September 14, 1999
CFD No. 99-1 (Santa Clarita Business Park) Page 4
d. Backup Special Tax
The Backup Special Tax in CFD No. 99-1 shall equal $11,767 per Acre for
Fiscal Year 2000-2001, and shall increase thereafter, commencing on July 1,
2001 and on July 1 of each Fiscal Year thereafter, by an amount equal to two
percent (2%) of the Backup Special Tax for the previous Fiscal Year.
2. Undeveloped Property and Taxable Public Property
a. Maximum Special Tax
The Maximum Special Tax for Undeveloped Property and Taxable Public
Property shall be $12,230 per Acre for Fiscal Year 2000-2001.
b. Increases in the Maximum Special Tax
On each July 1, commencing July 1, 2001, the Maximum Special Tax for
Undeveloped Property and Taxable Public Property shall be increased by two
percent (2%) of the amount in effect in the previous Fiscal Year.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2000-2001 and for each following Fiscal Year, the Council
shall determine the Special Tax Requirement and shall levy the Special Tax until the amount
of Special Taxes equal 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;
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;
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 Public Property up to the Maximum Special Tax for Taxable
Public Property.
City of Santa Clarita September 14, 1999
CFD No. 99-1 (Santa Clarita Business Park) Pape 5
E. EXEMPTIONS
No Special Tax shall be levied on up to 55.59 Acres of Public Property. Tax-exempt status
-- will be irrevocably assigned by the Finance Director in the chronological order in which
property becomes Public Property.
Public 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 Public
Property. However, on a year to year basis, the Finance Director may exempt such
Assessor's Parcels from the levy of the Special Tax in any Fiscal Year provided the Special
Tax Requirement can be satisfied without imposing a levy on said Assessor's Parcels.
F. REVIEW/APPEAL COMMITTEE
The Council shall establish as part of the proceedings and administration of CFD No. 99-1 a
special three-member Review/Appeal Committee. Any landowner or resident who feels that
the amount of the Special Tax, as to 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 will be collected in the same manner and at the same time as ordinary ad
valorem property taxes; provided, however, that CFD No. 99-1 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 defmitions apply to this Section H:
"CFD Public Facilities" means either $25.2 million 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 Finance Director as sufficient to provide the public
facilities to be provided by CFD No. 99-1 under the authorized Mello -Roos financing
program for CFD No. 99-1, or (ii) shall be determined by the Council concurrently with a
covenant that it will not issue any more Bonds to be supported by 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.
City of Santa Clarita September 14, 1999
CFD No. 99-1 (Santa Clarita Business Park) Pape 6
"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 Finance Director
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 public facility costs
available to be funded through existing construction or escrow accounts or funded by
Previously Issued Bonds, minus public facility costs funded by interest earnings on the
Construction Fund actually earned prior to the date of prepayment, and minus public
facilities costs paid directly with Special Taxes.
"Outstanding Bonds" means all Previously Issued Bonds which remain outstanding as of
the first interest and/or principal payment date following the current Fiscal Year.
"Previously Issued Bonds" means all Bonds that have been issued by CFD No. 99-1 prior
to the date of prepayment.
Only an 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. 99-1 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 Assessors Parcel
intending to prepay the Special Tax obligation shall provide CFD No. 99-1 with written
notice of intent to prepay. Within 30 days of receipt.of such written notice, CFD No. 99-1
shall notify such owner of the prepayment amount of such Assessor's Parcel. 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.
The Prepayment Amount (defined below) shall be calculated as summarized below
(capitalized terms as defined below):
Bond Redemption Amount
plus
Future Facilities Amount
plus
Redemption Premium
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:
City of Santa Clarita September 14, 1999
CFD No. 99-1 (Santa Clarita Business Park) Page 7
Paragraph No.:
1. 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 to be prepaid, 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.
2. (a) Divide the Assigned Special Tax computed pursuant to paragraph 1 for such
Assessor's Parcel by the estimated Assigned Special Taxes for the entire CFD No.
99-1 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. 99-1,
excluding any Assessor's Parcels which have been prepaid, and (b) Divide the
Backup Special Tax computed pursuant to paragraph 1 for such Assessor's Parcel by
the estimated Backup Special Taxes for the entire CFD No. 99-1 excluding any
Assessor's Parcels which have been prepaid.
3. 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").
4. Compute the current Future Facilities Costs
5. Multiply the larger quotient computed pursuant to paragraph 2(a) or 2(b) by the
amount determined pursuant to paragraph 4 to compute the amount of Future
Facilities Costs to be prepaid (the "Future Facilities Amount").
6. 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").
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 delinquencies apply to such Assessor's Parcel.
9. Determine the Special Taxes levied on the Assessor's Parcel in the current Fiscal
Year which have not yet been paid.
10. Compute the minimum amount the Finance Director expects to derive from the
reinvestment of the Bond Redemption Amount plus the Redemption Premium 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.
City of Santa Clarita September 14, 1999
CFD No. 99-1 (Santa Clarita Business Park) Page 8
12. Compute the net present value of the amount computed pursuant to paragraph 11,
using as a discount rate the rate of return assumed by the Finance Director in
paragraph 10 (the "Defeasance Amount").
13. Verify the administrative fees and expenses of CFD No. 99-1, 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").
14. 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, a reserve
fund credit shall be calculated as a reduction in the applicable reserve fund for the
Outstanding Bonds to be redeemed pursuant to the prepayment (the "Reserve Fund
Credit'). No Reserve Fund Credit shall be granted if reserve funds are below 100%
of the reserve requirement.
15. 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 as a reduction in the capitalized
interest fund, for the Outstanding Bonds to be redeemed pursuant to the prepayment
(the "Capitalized Interest Credit").
16. The Special Tax prepayment is equal to the sum of the amounts computed pursuant
to paragraphs 3, 5, 6, 12 and 13, less the amounts computed pursuant to
paragraphs 14 and 15 (the "Prepayment Amount").
From the Prepayment Amount, the amounts computed pursuant to paragraphs 3, 5, 6, 12, 14
and 15 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 13 shall be retained by CFD No. 99-1.
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 Finance Director 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 pay the
Special Tax shall cease.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the
amount of Assigned Special Taxes that may be levied on Taxable Property within CFD No.
99-1 both prior to and after the proposed prepayment is at least 1.1 times the maximum
annual debt service on all Outstanding Bonds.
City of Santa Clarita September 14, 1999
CFD No. 99-1 (Santa Clarita Business Park) Page 9
I. TERM OF SPECIAL TAX
The Special Tax shall be levied for a period not to exceed fiftyyears commencing with Fiscal
Year 2000-2001.
K.lClients2/SantaClarira/Mello/RMA/Clarita_RMA3.doc
Prepared: October 28, 1999
City of Santa Clarita September 14, 1999
CFD No. 99-1 (Santa Clarita Business Park) Page 10