HomeMy WebLinkAboutRES 2003-44 - Board TRUCKEE DONNER
PUblic Utility District
RESOLUTION NO. 2003-44
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
ESTABLISHING TRUCKEE DONNER PUBLIC UTILITY
DISTRICT COMMUNITY FACILITIES DISTRICT NO. 03-1
(OLD GREENWOOD), AUTHORIZING THE LEVY OF A
SPECIAL TAX THEREIN AND ESTABLISHING AN
ANNUAL APPROPRIATIONS LIMIT
WHEREAS, on August 6, 2003, pursuant to a petition filed by Truckee Land, LLC (the
"Petitioner") the Board of Directors (the "Board of Directors") of the Truckee Donner Public Utility
District (the "Public Utility District") adopted a resolution (the "Resolution of Intention") stating its
intention to form Truckee Donner Public Utility District Community Facilities District No. 03-1 (Old
Greenwood) (the "Community Facilities District")pursuant to the Mello-Roos Community Facilities
Act of 1982, as amended(the"Act"); and
WHEREAS, a copy of said resolution, setting forth a description of the proposed boundaries
of the Community Facilities District, the facilities to be financed by the Community Facilities
District and the rate and method of apportionment of the special tax proposed to be levied within the
Community Facilities District, is on file with the Clerk of the Public Utility District (the "District
Clerk") and is incorporated herein by reference; and
WHEREAS, on August 6, 2003, the Board of Directors also adopted a resolution stating its
intention to incur bonded indebtedness in an amount not to exceed $15,000,000 for the purpose of
financing(i)the cost of purchasing, constructing, expanding, improving or rehabilitating the facilities
listed on Appendix A to the Resolution of Intention, and all appurtenances and appurtenant work
associated with the foregoing (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"); all as more fully described in
said resolution; and
WHEREAS, notice was published and mailed as required by law relative to the intention of
the Board of Directors to form the Community Facilities District and to incur bonded indebtedness in
an amount not to exceed$15,000,000; and
WHEREAS, there has been filed with the Board of Directors a report containing a
description of the facilities necessary to meet the needs of the Community Facilities District and an
estimate of the cost of such facilities as required by Section 53321.5 of the Government Code (the
"Report"); and
WHEREAS, the Board of Directors has held a public hearing as required by law to
determine whether it should proceed with the formation of the Community Facilities District, issue
bonds to pay for the Facilities and the Incidental Expenses and authorize the rate and method of
apportionment of a special tax to be levied within the Community Facilities District for the purposes
described in the aforesaid resolutions; and
WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the
formation of the Community Facilities District, the levy of a special tax and the issuance of bonds to
pay for the cost of the proposed Facilities and Incidental Expenses were heard, and a full and fair
hearing was held; and
WHEREAS, at the public hearing evidence was presented to the Board of Directors on the
matters before it, and the proposed special tax to be levied within the Community Facilities District
was not precluded by a majority protest of the type described in Government Code Section 53324,
and the Board of Directors is sufficiently advised as to all matters relating to the formation of the
Community Facilities District, the levy of the special tax and the issuance of bonded indebtedness;
and
WHEREAS, there have been fewer than twelve registered voters residing in the proposed
boundaries of the Community Facilities District for the statutory period and the qualified electors in
the Community Facilities District are the landowners within the Community Facilities District; and
WHEREAS, on the basis of all of the foregoing, the Board of Directors has determined at
this time to proceed with the establishment of the Community Facilities District and to call an
election therein to authorize (i) the levy of special taxes pursuant to the rate and method of
apportionment of the special tax, as set forth in Attachment A hereto, (ii) the issuance of bonds to
pay for the Facilities and the Incidental Expenses, and (iii) the establishment of an appropriations
limit for the Community Facilities District;
NOW, THEREFORE, THE BOARD OF DIRECTORS OF TRUCKEE DONNER
PUBLIC UTILITY DISTRICT DOES HEREBY RESOLVE, DETERMINE AND ORDER AS
FOLLOWS:
Section 1. The above recitals are true and correct.
Section 2. A community facilities district designated "Truckee Donner Public Utility
District Community Facilities District No. 03-1 (Old Greenwood)" is hereby established pursuant to
the Act. The Board of Directors hereby finds and determines that all prior proceedings taken with
respect to the establishment of the Community Facilities District were valid and in conformity with
the requirements of law, including the Act. This finding is made in accordance with the provisions of
Section 53325.1(b) of the Act.
Section 3. The boundaries of the Community Facilities District are established as shown
on the map designated "Boundary Map of Proposed Community Facilities District No. 03-1 (Old
Greenwood)Truckee Donner Public Utility District,"which map is on file in the office of the District
Clerk and, pursuant to Sections 3111 and 3113 of the Streets and Highways Code, was recorded on
August 18, 2003 in the Book of Maps of Assessment and Community Facilities Districts in the
Office of the County Recorder of Nevada County in Book No. 1, at Page 20, as Instrument
No. 2003-0043758.
Section 4. The facilities authorized to be provided for the Community Facilities District
are those identified as the "Facilities" in the recitals of this resolution.
Section 5. It is the intention of the Board of Directors, subject to the approval of the
qualified electors of the Community Facilities District, to levy the proposed special tax at the rates
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set forth in Attachment A hereto on all non-exempt property within the Community Facilities District
sufficient to pay for (i) the Facilities, (ii) the principal and interest and other periodic costs on the
bonds proposed to be issued to finance the Facilities, including the establishment and replenishment
of reserve funds, any remarketing, credit enhancement and liquidity facility fees and other expenses
of the type permitted by Section 53345.3 of the Act; and(iii)the other Incidental Expenses, including
the costs of forming the Community Facilities District and administering the levy and collection of
the special tax and all other administrative costs of the special tax levy and bond issues. The Public
Utility District expects to incur, and in certain cases has already incurred, incidental expenses in
connection with the creation of the Community Facilities District, the issuance of bonds, the levying
and collecting of the special tax, the completion and inspection of the Facilities and the annual
administration of the bonds and the Community Facilities District. The rate and method of
apportionment of the special tax is described in detail on Attachment A hereto and incorporated
herein by this reference, and the Board of Directors hereby finds that Attachment A contains
sufficient detail to allow each landowner within the Community Facilities District to estimate the
maximum amount that may be levied against each parcel. As described in greater detail in the
Report, which is incorporated by reference herein, the special tax is based generally on the land use,
location and, in some cases, area of each parcel of real property within the Community Facilities
District and, accordingly, is hereby determined to be reasonable. The special tax shall be levied on
each assessor's parcel for a period not to extend beyond fiscal year 2044-2045. The special tax is
apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act, and such
special tax is not on or based upon the ownership of real property. Under no circumstances shall the
special tax levied against any parcel used for private residential purposes be increased by more than
10% as a consequence of delinquency or default by the owner of any other parcel or parcels within
the District.
The Assistant General Manager of the Public Utility District, 11570 Donner Pass Road,
Truckee, California 96160, telephone number (530) 582-3934, will be responsible for preparing
annually, or authorizing a designee to prepare, a current roll of special tax levy obligations by
assessor's parcel number and will be responsible for estimating future special tax levies pursuant to
Section 53340.2 of the Act.
Section 6. 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
specified on Attachment A, the Board of Directors shall, on behalf of the Community Facilities
District, increase the levy(to the extent necessary and permitted by law and these proceedings)upon
the remaining property within the Community Facilities District which is not exempt in order to yield
the required debt service payments on any outstanding bonds of the Community Facilities District or
to prevent the Community Facilities District from defaulting on any of its other obligations or
liabilities. The amount of the special tax will be set in accordance with the rate and method of
apportionment of the special tax attached hereto as Attachment A.
Section 7. 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 Community Facilities District, and this lien shall continue in force
and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled
in accordance with law or until collection of the special tax by the Community Facilities District
ceases.
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Section 8. It is hereby further determined that there will be no ad valorem property tax
levied on property within the Community Facilities District for the exclusive purpose of paying the
principal of or interest on bonds or other indebtedness incurred to finance the construction of capital
facilities which provide the same services to the territory of the Community Facilities District as are
proposed to be provided by the Facilities to be financed by the Community Facilities District.
Section 9. The Public Utility District may accept advances of funds or work-in-kind
from any source, including, but not limited to, the Petitioner and other private persons or private
entities, for any authorized purpose, including, but not limited to, paying any cost incurred by it 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 the Board of Directors,with or without interest.
Section 10. Written protests against the establishment of the Community Facilities
District have not been filed by one-half or more registered voters within the boundaries of the
Community Facilities District or by the property owners of one-half(1/2) or more of the area of land
within the Community Facilities District. The Board of Directors hereby finds that the proposed
special tax has not been precluded by a majority protest pursuant to Section 53324 of the Act.
Section 11. The annual appropriations limit (as defined in Section 8(h) of Article XIII B
of the California Constitution) of the Community Facilities District is hereby established at
$15,000,000.
Section 12. An election is hereby called for the Community Facilities District on the
propositions of levying the special tax on the property within the Community Facilities District and
establishing the appropriations limit for the Community Facilities District pursuant to
Section 53325.7 of the Act and shall be consolidated with the election on the proposition of incurring
bonded indebtedness, pursuant to Section 53351 of the Act. The language of the proposition to be
placed on the ballot is attached hereto as Attachment B.
Section 13. The date of the election for the Community Facilities District on the
proposition of incurring the bonded indebtedness, authorizing the levy of the special tax and
establishing the appropriations limit for the Community Facilities District shall be October 14, 2003.
The District Clerk shall conduct the election. Except as otherwise provided by the Act, the election
shall be conducted by personally delivered or mailed ballot and in accordance with the provisions of
law regulating elections of the Public Utility District insofar as such provisions are determined by the
District Clerk to be applicable.
It is hereby found that there have been fewer than twelve persons registered to vote within the
territory of the Community Facilities District for each of the ninety days preceding the close of the
public hearing described above; and, pursuant to Section 53326 of the Government Code, each
landowner who is the owner of record on the date hereof or the authorized representative thereof
shall have one vote for each acre or portion thereof that he or she owns within the Community
Facilities District.
Section 14. The preparation of the Report is hereby ratified. The Report, as submitted, is
hereby approved and is made a part of the record of the public hearing regarding the formation of the
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. Community Facilities District, and is ordered to be kept on file with the transcript of these
proceedings and open for public inspection.
ADOPTED and APPROVED by the Board of Directors of the Truckee Donner Public
Utility District on this 14th day of October, 2003 by the following vote:
AYES: Directors Aguera, Hemig and Van Gundy
NOES: Director Sutton
ABSENT: None
RECUSE: Director Maass
ABSTAIN: None
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By: 9
J. emig, President of the Board of erectors
ATTEST:
Peter L. Holzmeister, District Clerk
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ATTACHMENT A
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
COMMUNITY FACILITIES DISTRICT NO. 03-1
(OLD GREENWOOD)
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. 03-1 (Old Greenwood) [herein "CFD No. 03-1"] 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. 03-1, 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. 03-1 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.
"Affordable Unit" means any Unit within CFD No. 03-1 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.
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"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. 03-1 related to public infrastructure and/or improvements that are
authorized to be funded by CFD No. 03-1.
"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. 03-1 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 exceed the acreage exempted in
Section G below. 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 set forth in Section D
below. At CFD Formation, the Expected Land Uses were based on the Tentative Map. The
Expected Land Uses at CFD Formation are summarized in Attachment 1 hereto; the 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. 03-1
(excluding any Bond refundings), as determined in the sole discretion of the TDPUD.
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u "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. 03-1 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.
"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, Single Family Attached Property, or Undeveloped 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. 03-1 that is owned by the
federal government, State of California, County, Town, TDPUD, or other public agency.
"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.
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"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. 03-1. 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. 03-1 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. 03-1
which are not exempt from the Special Tax pursuant to law or Section G below.
"Tax Zone"means one of the two mutually exclusive geographic areas defined below and identified
in Attachment 2 of this Rate and Method of Apportionment of Special Tax, and any subsequent Tax
Zones created to contain property annexed into the CFD after CFD Formation.
"Tax Zone#V means the geographic area that is specifically identified in Attachment 2 of this Rate
and Method of Apportionment of Special Tax as Tax Zone#1.
"Tax Zone#2"means the geographic area that is specifically identified in Attachment 2 of this Rate
and Method of Apportionment of Special Tax as Tax Zone#2.
"TDPUD"means the Truckee Donner Public Utility District.
"Tentative Map" means the Tentative Map and Conditional Use Permit for the Old Greenwood
Planned Development, which was included as Exhibit D to the Development Agreement between
East West Partners and the Town which was recorded at the County Recorder's Office on August 23,
2002.
"Town"means the incorporated Town of Truckee.
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"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, (iii) 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 in Zone 1 for Fiscal Year
2004-05 is $3,000 per SFD Lot. The Maximum Special Tax for Single Family Detached
Property in Zone 2 for Fiscal Year 2004-05 is $3,400 per SFD Lot. On July 1, 2005 and on
each July 1 thereafter, these Maximum Special Tax rates 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 in Zone 1 for Fiscal Year
2004-05 is $3,000 per Unit. The Maximum Special Tax for Single Family Attached Property
in Zone 2 for Fiscal Year 2004-05 is $3,400 per Unit. On July 1, 2005 and on each July 1
thereafter, these Maximum Special Tax rates shall be increased by an amount equal to two
percent(2%)of the amount in effect for the prior Fiscal Year.
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- 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 $11,325 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 proposed 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.
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 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. 03-1;
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' 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) 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
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 analyzes the combined impacts of multiple Land
Use/Entitlement Changes, and the Town subsequently does not approve one
or more of the Land Use/Entitlement Changes that was proposed, the
Administrator shall once again apply the three steps set forth above to
determine the combined impact of those Land Use/Entitlement Changes that
were approved simultaneously by the Town.
A-7
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;
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. 03-1 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,
A-8
and all administrative expenses have been reimbursed. However, in no event shall a Special Tax be
levied after Fiscal Year 2039-2040.
G. EXEMPTIONS
Notwithstanding any other provision of this Rate and Method of Apportionment of Special Tax, no
Special Tax shall be levied on up to 30.31 Acres of Public Property. A separate amount of public
acreage may be exempted each time property annexes into CFD No. 03-1, 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.
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 $9,850,000 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 lower 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. 03-1; 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.
"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.
A-9
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):
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").
A-10
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
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.
A-11
ATTACHMENT 1
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
COMMUNITY FACILITIES DISTRICT NO. 03-1
(OLD GREENWOOD)
EXPECTED LAND USES AND
EXPECTED MAXIMUM SPECIAL TAX REVENUES
AT CFD FORMATION
Number of Maximum Special Tax Total Expected
Expected Per Unit/Acre for Maximum Special Tax
Expected Land Uses Units/Acres Fiscal Year 2004-05 * Revenues
Single Family Detached
Property and Single Family 104 Units $3,000 per SFD Lot $ 312,000
Attached Property in Zone 1
Single Family Detached
Property and Single Family 154 Units $3,400 per SFD Lot 523,600
Attached Property in Zone 2
Taxable Other Property 0 Acres N/A 0
w.wn p
Total Expected Maximum Special Tax Revenues $ 835,600
*Figures are shown in fiscal year 2004-05 dollars and will escalate two percent(2%)per year thereafter.
A-12
ATTACHMENT 2
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
COMMUNITY FACILITIES DISTRICT NO. 03-1
(OLD GREENWOOD)
IDENTIFICATION OF TAX ZONES
A-13
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ATTACHMENT B
BALLOT PROPOSITION
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
COMMUNITY FACILITIES DISTRICT NO. 03-1 (OLD GREENWOOD)
SPECIAL ELECTION
MEASURE SUBMITTED TO VOTE OF VOTERS: Shall Truckee
Donner Public Utility District Community Facilities District
No. 03-1 (Old Greenwood) (the "Community Facilities District")
incur an indebtedness and issue bonds in the maximum aggregate
principal amount of$15,000,000, with interest at a rate or rates not
to exceed the maximum interest rate permitted by law, the proceeds
of which will be used to finance the costs of planning, designing,
constructing, acquiring, modifying, expanding, improving,
furnishing, equipping or rehabilitating certain real and other tangible
property with an estimated useful life of five years or longer,
consisting of certain street, water and sewer system and
appurtenances and appurtenant work (collectively, the "Facilities")
and to finance the incidental expenses associated therewith (the YES
"Incidental Expenses"), all as further provided in the resolution of
the Board of Directors of the Truckee Donner Public Utility District NO
establishing the Community Facilities District (the "Resolution of
Formation"), and shall a special tax with a rate and method of
apportionment as provided in the Resolution of Formation be
authorized to be levied, and shall the annual appropriations limit of
Community Facilities District No. 03-1 (Old Greenwood) be
established in the amount of$15,000,000?
s-1