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HomeMy WebLinkAboutRES 2003-32 - Board t TRUCKEE DONNER Public Utility District Resolution No. 2003- 32 RESOLUTION OF THE BOARD OF DIRECTORS OF THE TRUCKEE DONNER PUBLIC UTILITY DISTRICT DECLARING ITS INTENTION TO ESTABLISH TRUCKEE DONNER PUBLIC UTILITY DISTRICT COMMUNITY FACILITIES DISTRICT NO. 03-2 (GRAY'S CROSSING) AND TO AUTHORIZE THE LEVY OF A SPECIAL TAX WITHIN SAID COMMUNITY FACILITIES DISTRICT WHEREAS, Truckee Land, LLC, the owner (the "Owner") of not less than 10 percent of the area of land depicted on the map of the proposed community facilities district referred to below on file with the District Clerk (the "Property"), has filed a written petition with the Truckee Donner Public Utility District (the "Public Utility District") to establish Truckee Donner Public Utility District Community Facilities District No. 03-2 (Gray's Crossing) (the "Community Facilities District") pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the Government Code of the Sate of California (the "Act") to finance (i) the cost of purchasing, constructing, expanding, improving or rehabilitating the facilities listed in Appendix A hereto, and all appurtenances and appurtenant work associated therewith (collectively the "Facilities") and (ii) the incidental expenses to be incurred in connection with financing the Facilities, including costs associated with the creation of the Community Facilities District and the issuance of bonds, the establishment and replenishment of bond reserve and special reserve funds (the "Incidental Expenses"); and WHEREAS, the petition submitted by the Owner complies with the requirements of Section 53319 of the Act; and WHEREAS, in connection herewith, this Board of Directors intends to approve an estimate of the costs of the Facilities and the Incidental Expenses for the Community Facilities District; and WHEREAS, subject to the satisfaction of all applicable requirements of law, it is the intention of this Board of Directors to finance the Facilities and to pay for the Incidental Expenses through the formation of the Community Facilities District and the levy of a special tax and the issuance of bonds, provided that the levy of the special tax and the issuance of the bonds are approved at an election to be held within the boundaries of the Community Facilities District; NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE TRUCKEE DONNER PUBLIC UTILITY DISTRICT DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. The above recitals are true and correct. Section 2. The Community Facilities District is proposed to be established under the terms of the Act. It is further proposed that the boundaries of the Community Facilities District shall be as depicted on the map of the proposed Community Facilities District which is on file with the District Clerk (the "Clerk"). The Clerk is hereby directed to sign the original map of the 1 Community Facilities District and record it with all proper endorsements thereon with the County Recorder of the County of Nevada within fifteen days after the adoption of this resolution, all as required by Section 3111 of the Streets and Highways Code of the State of California. Section 3. The name of the proposed Community Facilities District shall be "Truckee Donner Public Utility District Community Facilities District No. 03-2 (Gray's Crossing)." Section 4. The Facilities proposed to be provided within the Community Facilities District are facilities, as defined in the Act, which the Public Utility District, the Truckee Sanitary District, the Town of Truckee, the California Department of Transportation or Sierra Pacific Power Company is authorized by law to provide or to construct, acquire, own and operate, as the case may be. This Board of Directors hereby finds and determines that the description of the Facilities herein is sufficiently informative to allow taxpayers within the proposed Community Facilities District to understand what the funds of the Community Facilities District may be used to pay for. The Incidental Expenses expected to be incurred include the cost of planning and designing the Facilities, the costs of forming the Community Facilities District and levying and collecting a special tax within the Community Facilities District. Section 5. Except where funds are otherwise available, it is the intention of this Board of Directors to levy annually in accordance with the procedures contained in the Act a special tax, secured by recordation of a continuing lien against all non-exempt real property in the Community Facilities District, sufficient to pay for: (i) the Facilities and Incidental Expenses and (ii) the principal of and interest on and other periodic costs with respect to the bonds issued to finance the Facilities, including the establishment and replenishment of any reserve funds deemed .... necessary by the Community Facilities District and any remarketing, credit enhancement and liquidity facility fees (including such fees for instruments which serve as the basis of a reserve fund in lieu of cash) in connection with the bonds. The Facilities may be financed on a direct payment basis or through the issuance of the bonds. The rate, method of apportionment and manner of collection of the special tax are described in detail in Appendix B attached hereto and incorporated herein as though set forth at length (the "Rate and Method"). Appendix B allows each landowner and resident within the Community Facilities District to estimate the maximum amount that may be levied against each parcel. If special taxes of the Community Facilities District are levied against any parcel used for private residential purposes, (i) such tax shall not be levied or collected to pay for Facilities or Incidental Expenses after the 2044-2045 tax year and (ii) under no circumstances will such special tax be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within the Community Facilities District by more than ten percent. This Board of Directors hereby determines the Rate and Method to be reasonable. The special tax is apportioned to each parcel on the basis of land use and, in some cases, area pursuant to Section 53325.3 of the Act, and such special tax is not on or based upon the value or ownership of real property. In the event that a portion of the property within the Community Facilities District shall become for any reason exempt, wholly or partially, from the levy of the special tax, this Board of Directors shall, on behalf of the Community Facilities District, cause the levy to be increased, subject to the limitation of the maximum special tax for a parcel as set forth in the Rate and Method, to the extent necessary upon the remaining property within the Community Facilities District which is not delinquent or exempt in order to yield the special tax revenues required for the purposes described in this Section 5. 2 Section 6. A public hearing (the "Hearing") on the establishment of the Community Facilities District and the proposed Rate and Method shall be held at 7:00 p.m., or as soon thereafter as practicable, on October 1, 2003, in the board room of this Board of Directors, 11570 Donner Pass Road, Truckee, California 96160. Should this Board of Directors determine to form the Community Facilities District, a special election will be held to authorize the levy of the special tax in accordance with the procedures contained in Government Code Section 53326. If held, the proposed voting procedure at the election will be a landowner vote with each landowner of record as of the close of the Hearing having one vote for each acre of land or portion thereof owned within the Community Facilities District. Ballots for the special election may be distributed by mail or by personal service. Section 7. At the time and place set forth above for the Hearing, any interested person, including all persons owning lands or registered to vote within the proposed Community Facilities District, may appear and be heard. Section 8. Each officer of the Public Utility District who is or will be responsible for providing the Facilities within the proposed Community Facilities District, if it is established, is hereby directed to study the proposed Community Facilities District and, at or before the time of the Hearing, file a report with this Board of Directors containing a brief description of the public facilities by type which will in his or her opinion be required to meet adequately the needs of the proposed Community Facilities District and an estimate of the cost of providing those public facilities and an estimate of the fair and reasonable cost of any Incidental Expenses to be incurred. Section 9. The Public Utility District may accept advances of funds or work-in-kind from any source, including, but not limited to, private persons or private entities, for any authorized purpose, including, but not limited to, paying any cost incurred by the Public Utility District in creating the Community Facilities District. The Public Utility District may enter into an agreement with the person or entity advancing the funds or work-in-kind, to repay all or a portion of the funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work-in-kind, as determined by this Board of Directors, with or without interest. Section 10. The Clerk is hereby directed to publish a notice (the "Notice") of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of the Community Facilities District. Such publication shall be completed at least seven days prior to the date of the Hearing. The Clerk is further directed to mail a copy of the Notice to each of the landowners and registered voters, if any, within the boundaries of the Community Facilities District at least 15 days prior to the Hearing. The Notice shall contain the text or a summary of this Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners in the proposed Community Facilities District and a description of the proposed voting procedure for the election required by the Act. Section 11. Except to the extent limited in any bond resolution or trust indenture related to the issuance of bonds, the Board of Directors hereby reserves to itself all rights and powers set forth in Section 53344.1 of the Act (relating to tenders in full or partial payment). Section 12. The Clerk is hereby authorized and directed to transmit copies of this Resolution to the Town Council of the Town of Truckee. 3 PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the District on August 6, 2003 by the following roll call vote: AYES: Directors Aguera, Hemig and Van Gundy NOES: Director Sutton ABSENT: None RECUSE: Director Maass TRUCKEE DONN PUBLIC UTI ITY DISTRICT - Q -014 J. tl mig, President ATTE Peter L. Holzmeister, District Clerk 4 APPENDIX A LIST OF FACILITIES It is intended that the District will finance all or a portion of the costs of the following: 1. Acquisition or construction of the following public improvements: a. water distribution and supply and fire suppression facilities including: i. 24" water pipeline connecting Sanders Well to the Fiberboard under- crossing; ii. water source (well) development including surveys, design, drilling, pump installation, building construction and connection to water system; iii. water distribution system serving all residential and commercial properties within District; iv. all other water facilities required to service properties within District; b. electrical supply and distribution facilities including: i. electrical infrastructure installed for service to residential and commercial parcels within the boundaries of the District including design, conduit, trenching, transformers and installation of cabling; ii. electrical facilities fees; iii. all other electrical facilities required to service properties within District; C. public roadways, roundabouts and other road improvements including but not limited to medians, curbs, gutters, sidewalks, traffic signals, street signage, street lighting, pavement striping and any associated landscaping and erosion control; d. public plazas, including non-conforming signage; e. public access parks and trails; f. sanitary sewer facilities; i. sewer lift station including but not limited to wet wells, mechanical, electrical, pumping and building systems; ii. onsite sanitary facilities connecting residential and commercial parcels to lift station; iii. all other sanitary facilities required to service residential and commercial parcels within the boundaries of the District; g. storm drains and flood control facilities including but not limited to v—ditches, culverts, and infiltration ponds; A-1 h. wetlands and mitigation associated with construction of any public facility; i. natural gas, telephone, electric, and telecommunications facilities, including such facilities to be owned by shareholder owned utility companies regulated by the California Public Utilities Commission, and further including trenching and appurtenant work and improvements; j. relocation of any existing public improvements or utility improvements; k. any other public improvements identified in accordance with the Development Agreement between the Truckee Donner Public Utility District and Gray's Crossing, LLC pertaining to the Gray's Crossing development project; 2. Any soft cost associated with the design and construction of the above described improvements including but not limited to engineering, environmental review, inspection, surveying and staking, and environmental mitigation. A-2 APPENDIX B RATE AND METHOD OF APPORTIONMENT B-1 APPENDIX B TRUCKEE DONNER PUBLIC UTILITY DISTRICT COMMUNITY FACILITIES DISTRICT NO. 03-2 (GRAY'S CROSSING) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX A Special Tax applicable to each Assessor's Parcel in the Truckee Donner Public Utility District Community Facilities District No. 03-2 (Gray's Crossing) [herein"CFD No. 03-2"] shall be levied and collected according to the tax liability determined by the Board of Directors or its designee, through the application of the appropriate amount or rate for Taxable Property,as described below. All of the property in CFD No. 03-2, unless exempted by law or by the provisions of Section G below, shall be taxed for the purposes,to the extent, and in the manner herein provided, including property subsequently annexed to the CFD unless a separate Rate and Method of Apportionment is adopted for the annexation area. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre"or"Acreage"means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable Final Map or other parcel map recorded with the County. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, (commencing with Section 53311), Division 2 of Title 5 of the California Government Code. "Administrative Expenses"means any or all of the following: the fees and expenses of any fiscal agent or trustee (including any fees or expenses of its counsel) employed in connection with any Bonds,and the expenses of the TDPUD carrying out its duties with respect to CFD No.03-2 and the Bonds,including,but not limited to,levying and collecting the Special Tax,the fees and expenses of legal counsel, charges levied by the County Auditor's Office, Tax Collector's Office, and/or Treasurer's Office,costs related to annexing property into the CFD,costs related to property owner inquiries regarding the Special Tax, amounts needed to pay rebate to the federal government with respect to the Bonds,costs associated with complying with any continuing disclosure requirements for the Bonds and the Special Tax, and all other costs and expenses of the TDPUD in any way related to the establishment or administration of the CFD. "Administrator"means the person or firm designated by the TDPUD to administer the Special Tax according to this Rate and Method of Apportionment of Special Tax. a� TDPUD CFD No. 03-2 1 July 31,2003 fi~ "Affordable Unit"means any Unit within CFD No.03-2 which,in the sole discretion of the Town, is either deed-restricted to maintain the affordability of the Unit or is determined by the Administrator to have been planned, designed and/or built to be an affordable unit. "Assessor's Parcel"or"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 County Assessor designating parcels by Assessor's Parcel number. "Association Property" means any property within the CFD that is owned by a homeowners association, excluding Association Property under the pad or footprint of a Unit. "Board of Directors" or"Board" means the Board of Directors of the TDPUD. "Bonds" means bonds or other debt(as defined in the Act),whether in one or more series, issued, insured or assumed by CFD No. 03-2 related to public infrastructure and/or improvements that are authorized to be funded by CFD No. 03-2. "Capitalized Interest"means funds in any capitalized interest account available to pay debt service on Bonds. "CFD Formation" means the date on which the Resolution of Formation to form CFD No. 03-2 was adopted by the Board of Directors. "County" means the County of Nevada. "Developed Property" means, in any Fiscal Year, the following: • for Single Family Detached Property,all parcels for which a Final Map was recorded prior to May 1 of the preceding Fiscal Year • for Single Family Attached Property and Rental Property, all parcels for which a building permit for new construction of a residential structure was issued prior to May 1 of the preceding Fiscal Year. "Excess Public Property"means the acres of Public Property that exceeds the acreage anticipated to be Public Property in the Tentative Map. In any Fiscal Year in which a Special Tax must be levied on Excess Public Property pursuant to Step 4 in Section E below, Excess Public Property shall be those Assessor's Parcel(s)that most recently became Public Property based on the dates on which Final Maps recorded creating such Public Property. "Expected Land Uses"means the total number of Units expected to be constructed within the CFD as determined from time to time by the Administrator after applying the steps in Section D below. At CFD Formation, the Expected Land Uses were those expected to be reflected in the Tentative Map. The Expected Land Uses at CFD Formation are summarized in Attachment 1 hereto; the TDPUD CFD No. 03-2 2 July 31,2003 Administrator shall update Attachment 1 each time a change occurs to the land use plans for property in the CFD. "Expected Maximum Special Tax Revenues"means the amount of annual revenue that would be available if the Maximum Special Tax was levied on the Expected Land Uses. The Expected Maximum Special Tax Revenues as of CFD Formation are shown in Attachment 1 of this Rate and Method of Apportionment of Special Tax. "Final Bond Sale" means the last series of Bonds that will be issued on behalf of CFD No. 03-2 (excluding any Bond refundings), as determined in the sole discretion of the TDPUD. "Final Map" means a final map, or portion thereof, recorded by the County pursuant to the Subdivision Map Act(California Government Code Section 66410 et seq.)that creates individual lots on which building permits for new construction may be issued without further subdivision and for which no further subdivision is anticipated pursuant to the Tentative Map. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Fractional Unit" means a single family detached unit or a single family attached unit for which multiple owners may each purchase a fractional share of ownership(also referred to as a timeshare unit by the California Department of Real Estate). "Golf Course Property" means any property within CFD No. 03-2 that is used as a golf course, including but not limited to,a driving range,clubhouse,parking,lodge,outbuildings,and other golf- related amenities. Golf Course Property shall also include any property within the CFD that is used for a swim,tennis, and/or fitness facility. "Loft Unit" means a residential Unit located above and attached to a commercial establishment, which shall not under any circumstance include a residential Unit within which the owner of such Unit operates an at-home business operation. "Maximum Special Tax" means the greatest amount of Special Tax that can be levied on an Assessor's Parcel in any Fiscal Year determined in accordance with Section C below, as may be adjusted pursuant to Step 3 in Section D below. "Other Property"means,in any Fiscal Year,all Parcels of Taxable Property which are not Single Family Detached Property or Single Family Attached Property. "Proportionately"means,for Developed Property,that the ratio of the actual Special Tax levied in any Fiscal Year to the Maximum Special Tax authorized to be levied in that Fiscal Year is equal for all Assessor's Parcels of Developed Property, and for Undeveloped Property that the ratio of the actual Special Tax to the Maximum Special Tax is equal for all Assessor's Parcels of Undeveloped Property. "Public Property"means any property within the boundaries of CFD No.03-2 that is owned by the federal government, State of California, County, Town, TDPUD, or other public agency. TDPUD CFD No. 03-2 3 July 31,2003 w "Rental Property" means, in any Fiscal Year, all Parcels within the CFD for which a building permit was issued for construction of a residential structure with multiple Units that share common walls, all of which are offered or are expected to be offered for rent to the general public and/or employees. Fractional Units within the CFD shall at no time be categorized as Rental Property. "SFD Lot"means an individual residential lot, identified and numbered on a recorded Final Map, on which a building permit has been or is permitted to be issued for construction of a single family detached unit without further subdivision of the lot and for which no further subdivision of the lot is anticipated pursuant to the Tentative Map. "Single Family Attached Property"means,in any Fiscal Year,all Parcels of Developed Property for which a building permit was issued for construction of a residential structure consisting of two or more Units that share common walls and are offered or expected to be offered as for-sale units, including attached Fractional Units and such residential structures that meet that statutory definition of a condominium contained in Civil Code Section 1351. "Single Family Detached Property"means,in any Fiscal Year,all Parcels of Developed Property for which a building permit was issued or is permitted to be issued for construction of a Unit that does not share a common wall with another Unit, including detached Fractional Units. "Special Tax"means a Special Tax levied in any Fiscal Year to pay the Special Tax Requirement. "Special Tax Requirement"means the amount necessary in any Fiscal Year to: (i)pay principal and interest on Bonds which is due in the calendar year that begins in such Fiscal Year; (ii) create and/or replenish reserve funds for the Bonds;(iii)cure any delinquencies in the payment of principal or interest on Bonds which have occurred in the prior Fiscal Year or, based on existing delinquencies in the payment of Special Taxes,are expected to occur in the Fiscal Year in which the tax will be collected; (iv) pay Administrative Expenses; and (v) pay the costs of public improvements and public infrastructure authorized to be financed by CFD No. 03-2. The amounts referred to in clauses(i)and(ii)of the preceding sentence may be reduced in any Fiscal Year by:(i) interest earnings on or surplus balances in funds and accounts for the Bonds to the extent that such earnings or balances are available to apply against debt service pursuant to a Bond indenture,Bond resolution,or other legal document that sets forth these terms;(ii)proceeds received by CFD No.03- 2 from the collection of penalties associated with delinquent Special Taxes; and (iii) any other revenues available to pay debt service on the Bonds as determined by the Administrator. "Taxable Other Property" means, in any Fiscal Year, all Assessor's Parcels of Other Property which had,in prior Fiscal Years,been: (i)developed and taxed as Single Family Detached Property or Single Family Attached Property, or (ii) designated in the Tentative Map as Single Family Detached Property or Single Family Attached Property and, when a change to the Expected Land Uses was proposed designating the Parcel as Other Property,no prepayment was received pursuant to Step 3.b in Section D below. "Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No. 03-2 which are not exempt from the Special Tax pursuant to law or Section G below. TDPUD CFD No. 03-2 4 July 31,2003 "TDPUD" means the Truckee Donner Public Utility District. "Tentative Map"means the tentative map for the Gray's Crossing Planned Development submitted to the Town for approval prior to issuance of the first series of Bonds for CFD No. 03-2. "Town" means the incorporated Town of Truckee. "Undeveloped Property" means, in any Fiscal Year, all Parcels of Taxable Property within the CFD that are not Developed Property. "Unit"means (i) for Single Family Detached Property, an individual single-family detached unit, and(ii)for Single Family Attached Property,an individual residential unit within a duplex,triplex, fourplex,townhome, or condominium structure. B. DATA FOR ANNUAL ADMINISTRATION On or about July 1 of each Fiscal Year,the Administrator shall identify the current Assessor's Parcel numbers for all Parcels of Taxable Property. The Administrator shall also determine: (i) whether each Assessor's Parcel of Taxable Property is Developed Property or Undeveloped Property,(ii)for Developed Property,which Parcels are Single Family Detached Property, Single Family Attached Property, and Taxable Other Property, (..i) for Parcels of Single Family Attached Property, the number of Units on each Parcel, (iv) whether there are Parcels of Rental Property, Excess Public Property, or Parcels with Affordable Units, and(v)the Special Tax Requirement. For Single Family Attached Property,the number of Units shall be determined by referencing the site plan,condominium plan,or other development plan. If,in any Fiscal Year,an Assessor's Parcel includes both Developed Property and Undeveloped Property,the Administrator shall determine the Acreage associated with the Developed Property,subtract this Acreage from the total Acreage of the Assessor's Parcel, and use the remaining Acreage to calculate the Special Tax that will apply to Undeveloped Property within the Assessor's Parcel. In addition,the Administrator shall,on an ongoing basis,monitor whether changes in land use have been proposed that will affect the Expected Land Uses and whether Final Maps that have been proposed for approval by the Town are consistent with the Expected Land Uses. If changes to the Expected Land Uses are proposed, the Administrator shall apply the steps set forth in Section D below. C. MAXIMUM SPECIAL TAX 1. Single Family Detached Property The Maximum Special Tax for Single Family Detached Property for Fiscal Year 2004-05 is $3,000 per Unit for SFD Lots greater than 5,000 square feet, and $1,500 per Unit for SFD TDPUD CFD No. 03-2 5 July 31,2003 Lots less than or equal to 5,000 square feet. The square footage of SFD Lots shall be determined by reference to County Assessor's Parcel Maps or,to the extent such Maps do not reflect square footage of the SFD Lots,by reference to the lot size summary provided by the engineering firm that produced the Final Map. On July 1, 2005 and on each July 1 thereafter,this Maximum Special Tax shall be increased by an amount equal to two percent (2%) of the amount in effect for the prior Fiscal Year. 2. Single Family Attached Property The Maximum Special Tax for Single Family Attached Property for Fiscal Year 2004- 05 is $2,500 per Unit. On July 1, 2005 and on each July 1 thereafter, this Maximum Special Tax shall be increased by an amount equal to two percent(2%)of the amount in effect for the prior Fiscal Year. 3. Taxable Other Property The Maximum Special Tax for Taxable Other Property shall be the amount needed on a per-acre basis to maintain the Maximum Special Tax that was assigned to the Parcel prior to the Parcel becoming Taxable Other Property. After the Maximum Special Tax has been determined for a Parcel of Taxable Other Property,the Maximum Special Tax shall be increased each Fiscal Year thereafter by an amount equal to two percent(2%) of the amount in effect the prior Fiscal Year. 4. Undeveloped Property The Maximum Special Tax for Undeveloped Property for Fiscal Year 2004-05 is $17,500 per Acre. On July 1, 2005 and on each July 1 thereafter, this Maximum Special Tax shall be increased by an amount equal to two percent(2%)of the amount in effect for the prior Fiscal Year. Pursuant to Section 53321 (d) of the Act, the Special Tax levied against a Parcel used for private residential purposes shall under no circumstances increase more than ten percent (10%) as a consequence of delinquency or default by the owner of any other Parcel or Parcels and shall, in no event, exceed the Maximum Special Tax in effect for the Fiscal Year in which the Special Tax is being levied. D. BACK-UP FORMULA The Maximum Special Taxes set forth in Section C above were calculated based on the Expected Land Uses at CFD Formation. The Administrator shall review Tentative Map revisions and other changes to the land uses within the CFD and compare the revised land uses to the Expected Land Uses to evaluate the impact on the Expected Maximum Special Tax Revenues. In addition, the Administrator shall review Final Maps to ensure they reflect the number of residential Lots that was ® anticipated in the Tentative Map. TDPUD CFD No. 03-2 6 July 31,2003 If,prior to the Final Bond Sale, a change to the Expected Land Uses (a "Land Use/Entitlement Change") is proposed that will result in a reduction in the Expected Maximum Special Tax Revenues,no action will be needed pursuant to this Section D as long as the reduction in Expected Maximum Special Tax Revenues does not reduce debt service coverage on outstanding Bonds below the amount committed to in the Bond documents. Upon approval of the (a"Land Use/Entitlement Change"), the Administrator shall update Attachment 1 to show the reduced Expected Maximum Special Tax Revenues, and the reduced Expected Maximum Special Tax Revenues shall be the amount used to determine the amount of the Final Bond Sale. If a Land Use/Entitlement Change is proposed after the Final Bond Sale,the following steps shall be applied: Step 1: By reference to Attachment 1 (which will be updated by the Administrator each time a Land Use/Entitlement Change has been processed according to this Section D), the Administrator shall identify the Expected Maximum Special Tax Revenues for CFD No. 03-2; Step 2: The Administrator shall calculate the Maximum Special Tax revenues that could be collected from property in the CFD if the Land Use/Entitlement Change is approved; Step 3: If the amount determined in Step 2 is higher than that calculated in Step 1, the Land Use/Entitlement Change may be approved without further action. If the revenues calculated in Step 2 are less than those calculated in Step 1, and if: (a) The landowner does not withdraw the request for the Land Use/Entitlement Change that was submitted to the Town; or (b) Before approval of the Land Use/Entitlement Change,the landowner requesting the Land Use/Entitlement Change does not prepay a portion of the Special Tax for the CFD in an amount that corresponds to the lost Maximum Special Tax revenue,as determined by applying the steps set forth in Section H below; or (c) If the Land Use/Entitlement Change proposes that a Parcel of Single Family Detached Property or Single Family Attached Property be developed as another land use (other than Public Property), and the landowner requesting the Land Use/Entitlement Change fails to submit a written request to the TDPUD to designate the Parcel as Taxable Other Property,thereby maintaining the Expected Maximum Special Tax Revenues for the Parcel; then,the amount of the prepayment determined in Step 3.b shall be allocated on a per-acre basis and included on the next property tax bill for all Assessor's Parcels within the property affected by the Land Use/Entitlement TDPUD CFD No. 03-2 7 July 31,2003 Change. The amount allocated to each Assessor's Parcel shall be added to and, until paid, shall be a part of, the Maximum Special Tax for the Assessor's Parcel. If multiple Land Use/Entitlement Changes are proposed at one time(which may include approval of multiple Final Maps at one time),the Administrator may consider the combined effect of all the Land Use/Entitlement Changes to determine if there is a reduction in Expected Maximum Special Tax Revenues that necessitates implementation of Step 3.b or 3.c. If, based on this comprehensive analysis, the Administrator determines that there is a reduction in Expected Maximum Special Tax Revenue,and all of the Land Use/Entitlement Changes are being proposed by the same land owner,the Administrator shall determine the required prepayment(pursuant to Step 3.b) by analyzing the combined impact of all of the proposed Land Use/Entitlement Changes. Notwithstanding the foregoing, if the Administrator looks at the combined impacts of multiple Land Use/Entitlement Changes,and the Town subsequently does not approve one of the Land Use/Entitlement Changes that was proposed,the Administrator shall once again apply the three steps set forth above to determine the combine impact of those Land Use/Entitlement Changes that were approved simultaneously by the Town. If, based on the comprehensive analysis, the Administrator determines that there is a reduction in Expected Maximum Special Tax Revenue,and the Land Use/Entitlement Changes are not all being proposed by the same land owner,the Administrator shall consider the proposed Land Use/Entitlement Changes individually to determine the required prepayment from each owner. E. METHOD OF LEVY OF THE SPECIAL TAX Each Fiscal Year,the Administrator shall determine the Special Tax Requirement to be collected in that Fiscal Year, and the Special Tax shall be levied according to the steps outlined below. Step 1: The Special Tax shall be levied Proportionately on each Parcel of Developed Property within the CFD up to 100%of the Maximum Special Tax for each Parcel for such Fiscal Year until the amount levied on Developed Property is equal to the Special Tax Requirement prior to applying any Capitalized Interest that is available in the CFD accounts. Step 2: If additional revenue is needed after Step 1, and after applying Capitalized Interest to the Special Tax Requirement, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property within the CFD, up to 100% of the Maximum Special Tax for Undeveloped Property for such Fiscal Year determined pursuant to Section C; TDPUD CFD No.'03-2 8 July 31,2003 Step 3: If additional revenue is needed after applying the first two steps,the Special Tax shall be levied Proportionately on each Parcel of Association Property within the CFD,up to 100%of the Maximum Special Tax for Undeveloped Property for such Fiscal Year determined pursuant to Section C; Step 4: If additional revenue is needed after applying the first three steps,the Special Tax shall be levied Proportionately on each Assessor's Parcel of Excess Public Property,exclusive of property exempt from the Special Tax pursuant to Section G below, up to 100% of the Maximum Special Tax for Undeveloped Property for such Fiscal Year determined pursuant to Section C. F. COLLECTION OF SPECIAL TAX The Special Taxes for CFD No. 03-2 shall be collected in the same manner and at the same time as ordinary ad valorem property taxes,provided,however,that prepayments are permitted as set forth in Section H below and provided further that the TDPUD may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner,and may collect delinquent Special Taxes through foreclosure or other available methods. The Special Tax for Fractional Units may be billed either directly to individual fractional owners or to a homeowners association, which shall then bill the individual fractional owners;non-payment of Special Taxes billed by the homeowners association shall result in interest and penalties, and the fractional ownership shall be subject to foreclosure proceedings as set forth in the Bond covenants. The Special Tax shall be levied and collected until principal and interest on Bonds have been repaid, costs of constructing or acquiring authorized facilities from Special Tax proceeds have been paid, and all administrative expenses have been reimbursed. However,in no event shall a Special Tax be levied after Fiscal Year 2043-44. G. EXEMPTIONS Notwithstanding any other provision of this Rate and Method of Apportionment of Special Tax,no Special Tax shall be levied on Public Property up to the amount of acreage designated as Public Property in the Tentative Map. A separate amount of public acreage may be exempted each time property annexes into CFD No. 03-2, and such additional exemption shall only apply to property within the annexation area. A Special Tax may be levied on Excess Public Property pursuant to Step 4 of Section E; however, a public agency may require that the special tax obligation on land conveyed to it that would be classified as Excess Public Property be prepaid pursuant to Section H below. In addition,no Special Tax shall be levied in any Fiscal Year on(i)Golf Course Property,(ii)Rental Property,(iii)Affordable Units,or(iv)Other Property unless the Parcel is determined to be Taxable Other Property. TDPUD CFD No. 03-2 9 July 31,2003 H. PREPAYMENT OF SPECIAL TAX The following definitions apply to this Section H: "Outstanding Bonds"means all Previously Issued Bonds which remain outstanding,with the following exception: if a Special Tax has been levied against, or already paid by, an Assessor's Parcel making a prepayment,and a portion of the Special Tax will be used to pay a portion of the next principal payment on the Bonds that remain outstanding(as determined by the Administrator), that next principal payment shall be subtracted from the total Bond principal that remains outstanding, and the difference shall be used as the amount of Outstanding Bonds for purposes of this prepayment formula. "Previously Issued Bonds" means all Bonds that have been issued on behalf of the CFD prior to the date of prepayment. "Public Facilities Requirements"means either $16,350,000 in 2003 dollars, which shall increase on January 1,2004,and on each January 1 thereafter by the percentage increase,if any, in the construction cost index for the San Francisco region for the prior twelve (12) month period as published in the Engineering News Record or other comparable source if the Engineering News Record is discontinued or otherwise not available, or such other number as shall be determined by the TDPUD as sufficient to fund improvements that are authorized to be funded by the CFD. The Public Facilities Requirements shown above may be adjusted or a separate Public Facilities Requirements identified each time property annexes into CFD No.03-2;at no time shall the added Public Facilities Requirement for that annexation area exceed the amount of public improvement costs that are expected to be supportable by the Maximum Special Tax revenues generated within that annexation area. In addition,the Public Facilities Requirement may be adjusted if the total number of Units authorized to be constructed within the CFD is increased by the Town;this adjustment to the Public Facilities Requirement shall not exceed the amount of public improvement costs that are expected to be supportable by the Maximum Special Tax revenues generated by the additional number of Units approved by the Town. "Remaining Facilities Costs"means the Public Facilities Requirements(as defined above), minus public facility costs funded by Outstanding Bonds (as defined above), developer equity, and/or.any other source of funding. The Special Tax obligation applicable to an Assessor's Parcel in the CFD may be prepaid and the obligation of the Assessor's Parcel to pay the Special Tax permanently satisfied as described herein, provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Special Tax obligation shall provide the TDPUD with written notice of intent to prepay. Within 30 days of receipt of such written notice,the TDPUD or its designee shall notify such owner of the prepayment amount for such Assessor's Parcel. Prepayment must be made not less than 75 days prior to any redemption date for Bonds to be redeemed with the proceeds of such prepaid Special Taxes. The Prepayment Amount shall be calculated as follows:(capitalized terms as defined below): TDPUD CFD No. 03-2 10 July 31,2003 Bond Redemption Amount plus Remaining Facilities Amount plus Redemption Premium plus Defeasance Requirement plus Administrative Fees and Expenses less Reserve Fund Credit equals Prepayment Amount , As of the proposed date of prepayment,the Prepayment Amount shall be determined by application of the following steps: Step 1. Compute the total Maximum Special Tax that could be collected from the Assessor's Parcel prepaying the Special Tax in the Fiscal Year in which prepayment would be received by the TDPUD or, in the event of a prepayment pursuant to Step 3.b in Section D,compute the amount by which the Maximum, Special Tax revenues would be reduced by the Land Use/Entitlement Change and use the amount of this reduction as.the figure for purposes of this Step 1. Step 2. Divide the Maximum Special Tax from Step 1 by the then-current Expected Maximum Special Tax Revenues for the CFD. Step 3. Multiply the quotient computed pursuant to Step 2 by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid(the "Bond Redemption Amount'. Step 4. Compute the current Remaining Facilities Costs (if any). Step 5. Multiply the quotient computed pursuant to Step 2 by the amount determined pursuant to Step 4 to compute the amount of Remaining Facilities Costs to be prepaid (the "Remaining Facilities Amount'. Step 6. Multiply the Bond Redemption Amount computed pursuant to Step 3 by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed(the "Redemption Premium'). Step 7. Compute the amount needed to pay interest on the Bond Redemption Amount starting with the first Bond interest payment date after which the prepayment has been received until the earliest redemption date for the Outstanding Bonds,which,depending on the Bond offering document,may be as early as the next interest payment date. Step 8: Compute the amount of interest the TDPUD reasonably expects to derive from reinvestment of the Bond Redemption Amount plus the Redemption Premium from the first Bond interest payment date after which the TDPUD CFD No. 03-2 I1 July 31,2003 prepayment has been received until the redemption date for the Outstanding Bonds. Step 9: Take the amount computed pursuant to Step 7 and subtract the amount computed pursuant to Step 8 (the "Defeasance Requirement'. Step 10. Determine the costs of computing the prepayment amount, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption(the "Administrative Fees and Expenses'. Step 11. If and to the extent so provided in the indenture pursuant to which the Outstanding Bonds to be redeemed were issued,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'. .Step 12. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to Steps 3, 5, 6, 9, and 10, less the amount computed pursuant to Step 11 (the "Prepayment Amount'. A partial prepayment may be made in an amount equal to any percentage of full prepayment desired by the party making a partial prepayment. The Maximum Special Tax that can be levied on an Assessor's Parcel after a partial prepayment is made is equal to the Maximum Special Tax that could have been levied prior to the prepayment, reduced by the percentage of a full prepayment that the partial prepayment represents, all as determined by or at the direction of the Administrator. I. INTERPRETATION OF SPECIAL TAX FORMULA The TDPUD reserves the right to make minor administrative and technical changes to this document that do not materially affect the rate and method of apportioning Special Taxes. In addition, the interpretation and application of any section of this document shall be left to the TDPUD's discretion. Interpretations may be made by the TDPUD by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment of Special Tax. TDPUD CFD No. 03-2 12 July 31,2003 ATTACHMENT 1 TRUCKEE DONNER PUBLIC UTILITY DISTRICT COMMUNITY FACILITIES DISTRICT NO. 03-2 (GRAY'S CROSSING EXPECTED LAND USES AND EXPECTED MAXIMUM SPECIAL TAX REVENUES AT CFD FORMATION Total Expected Maximum Special Tax Maximum Number of Per Unit/Acre for Special Tax Expected Land Uses Expected Units/Acres Fiscal Year 2004-05 * Revenues * Single Family Detached Property on 410 Units $3,000 per SFD Lot $1,230,000 Lots Greater Than 5,000 Square Feet Single Family Detached Property on 57 Units $1,500 per SFD Lot $855500 Lots Less Than or Equal to 5,000 Square Feet Single Family 33 Units $2,500 per Unit $82,500 Attached Property Taxable Other 0 Acres N/A $0 Property Total Expected Maximum Special Tax Revenues $193989000 *Figures are shown in fiscal year 2004-05 dollars and will escalate two percent(201o)per year thereafter.