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COMMUNITY FACILITIES
DISTRICT REPORT
CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT
NO. 109 (NARRA HILLS)
Report Date: May 20, 2022
www.FinanceDTA.com 5000 Birch Street, Suite 3000
Newport Beach, CA 92660
COMMUNITY FACILITIES DISTRICT REPORT
FOR
CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 109
(NARRA HILLS)
Prepared for:
City of Fontana
8353 Sierra Avenue
Fontana, CA 92335
TABLE
OF CONTENTS
SECTION
I INTRODUCTION .............................................................. 1 II PROJECT DESCRIPTION ................................................ 2
III DESCRIPTION AND ESTIMATED COSTS OF PUBLIC
FACILITIES AND SERVICES ............................................ 3 A Description of Public Facilities and Services ................ 3 B Estimated Costs of Public Facilities and
Services ................................................................................. 4
IV BONDED INDEBTEDNESS AND INCIDENTAL
EXPENSES .......................................................................... 7 A Projected Bond Sales ......................................................... 7 B Incidental Bond Issuance Expenses to be
Included in the Proposed Bonded
Indebtedness ....................................................................... 7 C Incidental Expenses to be Included in the
Annual Levy of Special Taxes ........................................... 7 V RATE AND METHOD OF APPORTIONMENT .............. 8
A Explanation for Special Tax Apportionment ................. 8 B Maximum Facilities Special Tax ....................................... 9 C Backup Facilities Special Tax .......................................... 10 D Maximum Services Special Tax ...................................... 10 E Accuracy of Information ................................................. 10 VI BOUNDARIES OF THE CFD .......................................... 11 VII GENERAL TERMS AND CONDITIONS ....................... 12 A Substitution of Facilities and Services ......................... 12 B Appeals and Interpretations ........................................... 12 C Prepayment of Special Tax ............................................. 12
APPENDICES
APPENDIX A RATE AND METHOD OF
APPORTIONMENT
APPENDIX B BOUNDARY MAP
1 SECTION I
INTRODUCTION
City of Fontana May 20, 2022
Community Facilities District No. 109 (Narra Hills)
www.FinanceDTA.com
I INTRODUCTION
WHEREAS, the City Council of the City of Fontana (hereinafter referred to as the "Council") did, pursuant to the provision of the "Mello-Roos Community Facilities Act of 1982," being Chapter 2.5, Part 1, Division 2 of Title 5 (commencing with Section 53311) of the Government Code of the State of California (hereinafter referred to as the "Act"), and specifically Section 53321.5 thereof, expressly order the filing of a written "Report" with the legislative body of the proposed Community Facilities District (“CFD”). This CFD being City of Fontana CFD No. 109 (Narra Hills) shall hereinafter be referred to as:
"CFD No. 109"; and,
WHEREAS, on April 12, 2022, Council, pursuant to the Act, adopted Resolution No. 2022- 024 entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FONTANA OF
INTENTION TO ESTABLISH A COMMUNITY FACILITIES DISTRICT PROPOSED TO BE NAMED CITY OF FONTANA COMMUNITY FACILITIES DISTRICT NO. 109 (NARRA HILLS), AND TO AUTHORIZE THE LEVY OF SPECIAL TAXES" (hereinafter referred to as the "Resolution of Intention") directing that the Report generally contain the following:
1. A brief description of the public facilities and services by type which will be required to adequately meet the needs of CFD No. 109; and
2. An estimate of the cost of providing the public facilities and services, including an estimate of the fair and reasonable cost of the public facilities proposed to be purchased as completed public facilities and of the incidental expenses proposed to be paid.
WHEREAS, each officer of the City of Fontana (hereinafter referred to as the "City") who is or will be responsible for providing one or more of the proposed types of public facilities or services to be financed by CFD No. 109 has hereby directed DTA, Inc. to study the proposed CFD No. 109 and, at or before the time of the public hearing on the establishment of CFD No. 109, file the Report with Council pursuant to the provisions of the Resolution of Intention.
NOW, THEREFORE, DTA, Inc. does hereby submit the Report. 2 SECTION II
PROJECT DESCRIPTION
City of Fontana May 20, 2022
Community Facilities District No. 109 (Narra Hills)
www.FinanceDTA.com
II PROJECT DESCRIPTION
CFD No. 109 encompasses approximately 137.33 gross acres of land within the City located on the west side of Citrus Avenue north of Duncan Canyon Road. Of this acreage, approximately 73.25 acres are expected to be developed into uses subject to a Mello-Roos Special Tax1. At buildout, it is currently anticipated that CFD No. 90 will consist of approximately 489 residential units, comprised of 129 single family attached townhome units ranging in size from 1,316 to 1,855 square feet, 127 single family detached cluster units ranging in size from 2,100 to 2,555 square feet, and 233 single family detached units ranging in size from 2,387 to 4,249 square feet.
1 Please note that all capitalized terms used herein, unless otherwise indicated, shall have the meanings defined in the Rate and Method of Apportionment for CFD No. 109. 3 SECTION III
DESCRIPTION AND ESTIMATED
COSTS OF PUBLIC FACILITIES AND
SERVICES
City of Fontana May 20, 2022
Community Facilities District No. 109 (Narra Hills)
www.FinanceDTA.com
III DESCRIPTION AND ESTIMATED COSTS OF PUBLIC FACILITIES AND
SERVICES
A CFD may provide for the purchase, construction, expansion or rehabilitation of any real or tangible property, including public facilities and infrastructure improvements, with an estimated useful life of five (5) years or longer, which is necessary to meet increased demands placed upon local agencies as a result of development or rehabilitation occurring within the CFD. In addition, a CFD may pay in full all amounts necessary to eliminate any fixed special assessment liens or to pay, repay, or defease any obligation to pay for any indebtedness secured by any tax, fee, charge, or assessment levied within the area of the CFD. A CFD may also provide for financing of certain public services to meet these demands.
A Description of Public Facilities and Services
The type of public facilities proposed to be eligible for funding by CFD No. 109, as identified in the resolution establishing CFD No. 109 (the "Resolution of Formation"), shall consist of those listed below. It is intended that CFD No. 109 will be authorized to finance all or a portion of the costs of any of the following public facilities to be owned and operated by the City, the San Bernardino County Flood Control District, and the West Valley Water District (collectively the “Local Agencies”) and such public facilities shall be constructed, whether or not acquired in their completed states, pursuant to the plans and specifications approved by the Local Agencies:
A.1 Facilities
The types of public facilities proposed to be eligible for funding by CFD No. 109 are streets, including grading, paving, curbs and gutters, sidewalks, street signalization and signage, street lights and parkway and landscaping related thereto, sewers, storm drains, fire protection facilities, police facilities, public facilities, landscaping, library facilities, park and recreational facilities, flood control facilities consisting of the relocation and construction of the Hawker Crawford flood control channel, water distribution, treatment and storage facilities and land, rights-of-way and easements necessary for any of such facilities.
A.2 Facilities Authorized to be Purchased as Completed Public Facilities The types of public facilities proposed to be purchased as completed facilities by CFD No. 109 are streets, including grading, paving, curbs and gutters, sidewalks, street signalization and signage, street lights and parkway and landscaping related thereto, sewers, storm drains, fire protection facilities, police facilities, public facilities, landscaping, library facilities, park and recreational facilities, flood control facilities consisting of the relocation and construction of the Hawker Crawford flood control channel, water distribution, treatment and storage facilities and land, rights-of-way and easements necessary for any of such facilities. 4 SECTION III
DESCRIPTION AND ESTIMATED
COSTS OF PUBLIC FACILITIES AND
SERVICES
City of Fontana May 20, 2022
Community Facilities District No. 109 (Narra Hills)
www.FinanceDTA.com
A.3 Services
The types of public services to be financed by CFD No. 109 are fire protection and suppression services, maintenance and lighting of parks, parkways, streets, roads and open space, flood and storm protection services and maintenance and operation of any real property or other tangible property with an estimated useful life of five or more years that is owned by the City.
A.4 Incidental Expenses
The incidental expenses proposed to be incurred include the following:
The cost of planning and designing public facilities to be financed by CFD No. 109, including the cost of environmental evaluations of those facilities; The costs associated with the creation of CFD No. 109, issuance of CFD No. 109 bonds (the "Bonds"), determination of the amount of taxes, collection of taxes, payment of taxes, or costs otherwise incurred in order to carry out the authorized purposes of CFD No. 109; and
Any other expenses incidental to the construction, completion, and inspection of the authorized work.
B Estimated Costs of Public Facilities and Services
The estimated costs of infrastructure and facilities currently expected to be financed through CFD No. 109 are set forth in the table below. The costs listed below are estimates only and actual costs may differ from those estimates herein. As previously referenced, it is intended that CFD No. 109 will be authorized to finance all or a portion of the costs of any of the following public facilities:
5 SECTION III
DESCRIPTION AND ESTIMATED
COSTS OF PUBLIC FACILITIES AND
SERVICES
City of Fontana May 20, 2022
Community Facilities District No. 109 (Narra Hills)
www.FinanceDTA.com
CFD No. 109 (NARRA HILLS) PUBLIC FACILITIES AMOUNT
Acquisition Facilities
$25,138,983 [1]
Hawker-Crawford Channel Backbone Improvements $11,648,004 Lytle Creek Road (& Intract) Planning Area Water System Improvements
$4,392,549
Sewer Improvements (Lytle Creek Sewer Realignment & Intract) $3,098,823 Storm Drain Improvements (Bypass Drainage Backbone) $2,854,302 Circulation Improvements (Lytle Creek Street Improvements) $1,559,159 Traffic Signal Improvements (Glenn Canyon Traffic Signal) $843,125 Street Light Improvements $446,056
Storm Drain Improvements (Lytle Creek Storm Drain) $296,965
Other Public Facilities
$15,955,351 [2]
$12,234,515 [3]
Water System Capacity Improvements $6,566,419 $6,566,419 Park Facility Improvements $3,045,815 $2,398,236
Traffic Circulation Facility Improvements $2,516,901 $1,283,620 Storm Drain Facility Improvements $1,411,314 $0
Housing Facility Improvements $570,882 $570,882
Sewer Facility Improvements $428,662 $0
Public Facility Improvements $332,877 $332,877
Police Facility Improvements $281,240 $281,240
Landscape Facility Improvements $251,310 $251,310
Fire Flow Facility Improvements $246,788 $246,788
Library Facility Improvements $222,947 $222,947
Fire Service Protection Improvements $80,196 $80,196
Additional Capital Facilities Infrastructure Improvements $6,595,323 TOTAL ESTIMATED COSTS $43,968,821
[1] Estimates provided by the Project Developer and subject to review and confirmation. Estimates are inclusive of a 15% construction costs contingency for design, planning, engineering and construction management. [2] Estimated amount of Permit Fees prior to the application of anticipated City fee credits. [3] Estimated amount of Permit Fees after the application of anticipated City fee credits.
In addition, CFD No. 109 is expected to finance the annual costs to provide fire protection and suppression services, maintenance and lighting of parks, parkways, streets, roads and open space, flood and storm protection services, and maintenance and operation of any real property or other tangible property with an estimated useful life of five or more years 6 SECTION III
DESCRIPTION AND ESTIMATED
COSTS OF PUBLIC FACILITIES AND
SERVICES
City of Fontana May 20, 2022
Community Facilities District No. 109 (Narra Hills)
www.FinanceDTA.com
that is owned by the City. The Services Special Taxes within CFD No. 109 have been established to pay for these public services at approximately $744 per single family detached residence, $718 per single family detached cluster unit, and $718 per single family attached townhome unit per year. These amounts are subject to change based on the actual need that arises as development progresses within CFD No. 109, and shall also be subject to an annual increase as specified in Section C.2 of the Rate and Method of Apportionment (defined herein).
7 SECTION IV
BONDED INDEBTEDNESS AND
INCIDENTAL EXPENSES
City of Fontana May 20, 2022
Community Facilities District No. 109 (Narra Hills)
www.FinanceDTA.com
IV BONDED INDEBTEDNESS AND INCIDENTAL EXPENSES
A Projected Bond Sales
The maximum authorized bonded indebtedness for CFD No. 109 is $50,000,000. It is anticipated that CFD No. 109 will sell one or more series of Bonds, as determined necessary and appropriate by Council, as development progresses within CFD No. 109.
B Incidental Bond Issuance Expenses to be Included in the Proposed Bonded Indebtedness
Pursuant to Section 53345.3 of the Act, bonded indebtedness may include all costs and estimated costs incidental to, or connected with, the accomplishment of the purpose for which the proposed debt is to be incurred, including, but not limited to, the estimated costs of construction or acquisition of buildings, or both; acquisition of land, rights-of-way, water, sewer, or other capacity or connection fees; satisfaction of contractual obligations relating to expenses or the advancement of funds for expenses existing at the time the bonds are issued, architectural, engineering, inspection, legal, fiscal, and financial consultant fees; bond and other reserve funds; discount fees; interest on any bonds of the district estimated to be due and payable within two years of issuance of the bonds; election costs; and all costs of issuance of the bonds, including, but not limited to, fees for bond counsel, disclosure counsel and the City's general counsel, costs of obtaining credit ratings, bond insurance premiums, fees for letters of credit, and other credit enhancement costs, and printing costs. For the Bonds proposed to be issued by CFD No. 109, the reserve requirement is estimated at approximately seven percent of the principal amount of Bonds, capitalized interest is estimated at approximately five percent of the principal amount of Bonds, and all other incidental bond issuance expenses are estimated at approximately three percent of the principal amount of Bonds. Actual bond issuance expenses, including the amount of Bond funded capitalized interest, may vary from the above estimates.
C Incidental Expenses to be Included in the Annual Levy of Special Taxes Pursuant to Section 53340 of the Act, the proceeds of any special tax may only be used to pay, in whole or part, the costs of providing public facilities, services and incidental expenses. As defined by the Act, incidental expenses include, but are not limited to, the costs of planning and designing public facilities to be financed, including the costs of environmental evaluations of those public facilities; the costs associated with the creation of the district, issuance of bonds, determination of the amount of taxes, collection of taxes, payment of taxes, or costs otherwise incurred in order to carry out the authorized purposes of the district; any other expenses incidental to the construction, completion, and inspection of the authorized work; and the costs associated with the retirement of existing bonded indebtedness. While the actual costs of administering CFD No. 109 may vary, it is anticipated that the amount of Special Taxes which can be collected will be sufficient to fund at least $40,000 in annual administrative expenses, which shall also be subject to an annual increase of two (2%) annually.
8 SECTION V
RATE AND METHOD OF
APPORTIONMENT
City of Fontana May 20, 2022
Community Facilities District No. 109 (Narra Hills)
www.FinanceDTA.com
V RATE AND METHOD OF APPORTIONMENT
All of the property located within CFD No. 109, unless exempted by law or by the Rate and Method of Apportionment (defined below), shall be taxed for the purpose of funding public facilities and services authorized to be financed by CFD No. 109. Pursuant to Section 53325.3 of the Act, the tax imposed “is a special tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property.” The special tax “may be based on benefit received by parcels of real property, the costs of making authorized facilities or authorized services available to each parcel or other reasonable basis as determined by the legislative body,” although the special tax may not be apportioned on an ad valorem basis pursuant to Article XIIIA of the California Constitution.
The rate and method of apportionment of the special tax (the "Rate and Method of Apportionment") proposed to be levied within CFD No. 109 is described in Exhibit B to the Resolution of Intention. This proposed Rate and Method of Apportionment, also provided herein as Appendix A, provides information sufficient to allow each property owner within CFD No. 109 to estimate the maximum annual Special Tax he or she will be required to pay.
Sections A through D below provide additional information on the Rate and Method of Apportionment.
A Explanation for Special Tax Apportionment
When a CFD is formed, a special tax may be levied on each parcel of taxable property within the CFD to pay for the construction, acquisition and rehabilitation of public facilities, to pay for authorized services or to repay bonded indebtedness or other related expenses incurred by a CFD. This special tax must be apportioned in a reasonable manner; however, the tax may not be apportioned on an ad valorem basis.
When more than one type of land use is present within a CFD, several criteria may be considered when apportioning the special tax. Generally, criteria based on building square footage, acreage, and land use are selected, and categories based on such criteria are established to differentiate between parcels of property. These categories are a direct result of the projected product mix and are reflective of the proposed land use types within that CFD. Specific special tax levels are assigned to each land use class, with all parcels within a land use class assigned the same special tax rate.
The Act does not require that special taxes be apportioned to individual parcels based on benefit received. However, in order to ensure fairness and equity, benefit principles have been incorporated in establishing the Special Tax rates for CFD No. 109.
The major assumption inherent in the Special Tax rates set forth in the Rate and Method of Apportionment is that the level of benefit received from the proposed public facilities and services is a function of land use and/or product type. This assumption is borne out 9 SECTION V
RATE AND METHOD OF
APPORTIONMENT
City of Fontana May 20, 2022
Community Facilities District No. 109 (Narra Hills)
www.FinanceDTA.com
through an examination of commonly accepted statistical measures for public facility usage.
For example, in measuring average weekday vehicle trip-ends, the Institute of Transportation Engineer's Trip Generation manual identifies land use as the primary determinant of trip-end magnitude. Larger residential dwelling units typically generate a greater number of trip-ends than do smaller residential dwelling units, and therefore, will tend to receive more benefit from road grading, road landscaping and road improvements.
Drainage and flood control requirements generally vary with the amount of impervious ground cover per parcel. It follows that large homes situated on large lots have more impervious ground cover which will create more drainage flows than that of smaller homes situated on smaller lots.
In addition, sewer treatment costs are based on plant capacity to treat Biochemical Oxygen Demand (“BOD”), Suspended Solids (“SS”), and the flow rate. Other variables for water and sewer requirements include storage and fire flow requirements, as well as the number of bathrooms and fixture units in the home and the population of the household, which tends to vary directly with the size of the dwelling unit.
In addition, larger buildings typically generate a greater number of “person hours,” or the number of hours per week that residents associated with a specific type of land use could potentially use park and recreation facilities, or require the need for the proposed public services.
Therefore, Special Tax rates have been established for residential and non-residential land use classes for CFD No. 109. In addition, in order to ensure fairness, the Special Tax rates are uniformly applied within each land use class. The Special Tax for a parcel of Residential Property in CFD No. 109 will vary directly based on the type of use and the amount of Residential Floor Area on such parcel. The Special Tax for Non-Residential Property, if any, in CFD No. 109 will vary directly with the acreage of such parcel.
Based on the types of public facilities and services that are proposed for CFD No. 109 and the factors described above, the Special Taxes assigned to Developed Properties are generally proportionate to the relative benefits received by them, and, accordingly, the Special Taxes in CFD No. 109 can be considered fair and reasonable.
B Maximum Facilities Special Tax
Table 1 within the Rate and Method of Apportionment lists the Assigned Facilities Special Tax that may be levied on each Assessor’s Parcel classified as Developed Property within CFD No. 109 to fund the Special Tax Requirement for Facilities. The Facilities Special Tax for an Assessor’s Parcel of Developed Property cannot exceed the rates shown in such Table 1, except when the Backup Facilities Special Tax is applied as discussed in Section C below. In addition, the Maximum Facilities Special Tax for each Assessor’s Parcel of Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association 10 SECTION V
RATE AND METHOD OF
APPORTIONMENT
City of Fontana May 20, 2022
Community Facilities District No. 109 (Narra Hills)
www.FinanceDTA.com
Property shall range from $28,860 per Acre to $70,530 per Acre, as identified in Table 3 within the Rate and Method of Apportionment, based on the location of such Assessor’s Parcel.
C Backup Facilities Special Tax
Pursuant to the Rate and Method of Apportionment, the Maximum Facilities Special Tax for each Assessor’s Parcel classified as Developed Property shall be the greater of (i) the amount derived by application of the Assigned Facilities Special Tax or (ii) the amount derived by application of the Backup Facilities Special Tax. The Backup Facilities Special Tax for an Assessor's Parcel of Developed Property shall range from $28,860 per Acre to $70,530 per Acre, as identified in Table 2 within the Rate and Method of Apportionment, based on the location of such Assessor’s Parcel, or such lower amount as determined pursuant to Section C.1.a.(3) of the Rate and Method of Apportionment.
D Maximum Services Special Tax
Table 4 within the Rate and Method of Apportionment lists the Fiscal Year 2022-2023 Maximum Services Special Tax that may be levied against Developed Property within CFD No. 109 to fund the Special Tax Requirement for Services. On each July 1, commencing July 1, 2023, the Maximum Services Special Tax shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year. No Services Special Tax shall be levied on Undeveloped Property, Taxable Public Property, Taxable Property Owner Association Property, or Public Property and Property Owner Association Property in CFD No. 109. Refer to Section C.2 of the Rate and Method of Apportionment for further details on the Services Special Tax.
E Accuracy of Information
In order to establish the Maximum Special Tax rates for CFD No. 109 as set forth in the Rate and Method of Apportionment, DTA has relied on information including, but not limited to, absorption, land-use types, building square footage, and net taxable acreage provided to it by others. DTA has not independently verified such data and disclaims responsibility for the impact of inaccurate data, if any, on the Rate and Method of Apportionment for CFD No. 109, including the inability to meet the financial obligations within CFD No. 109.
11 SECTION VI
BOUNDARIES OF THE CFD
City of Fontana May 20, 2022
Community Facilities District No. 109 (Narra Hills)
www.FinanceDTA.com
VI BOUNDARIES OF THE CFD
The boundaries of CFD No. 109 include all land on which the Special Taxes may be levied.
A reduced scale map showing the boundaries of CFD No. 109 is provided herein as Appendix B. A full-scale map is on file with the City Clerk of the City and was recorded on April 20, 2022 in Book 90 of Maps of Assessment and Community Facilities Districts at
County of San Bernardino.
12 SECTION VII
GENERAL TERMS AND
CONDITIONS
City of Fontana May 20, 2022
Community Facilities District No. 109 (Narra Hills)
www.FinanceDTA.com
VII GENERAL TERMS AND CONDITIONS
A Substitution of Facilities and Services
The descriptions of the public facilities and services, as set forth herein, are general in their nature. The Local Agencies will determine the final nature, location, and costs of facilities and services upon the preparation of final plans and specifications. The final plans may show substitutes, in lieu of modifications to the proposed work in order to accomplish the work of improvement, and any such substitution shall not be a change or modification in the proceedings as long as the public facilities and services provide a service substantially similar to that as set forth in this Report.
B Appeals and Interpretations
Pursuant to Section G of the Rate and Method of Apportionment, any landowner or resident who feels that the amount of the Special Tax levied on his/her Assessor’s Parcel is in error may submit a written appeal to the CFD Administrator, provided that the appellant is current in his/her payment of Special Taxes. During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, a cash refund shall not be made (except for the last year of levy), but the amount of the Special Tax levied shall be appropriately modified through an adjustment to the Special Tax levy in the following Fiscal Year. If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has 30 days in which to appeal to the Council by filing a written notice of appeal with the City Clerk, provided that the appellant is current in his/her payment of Special Taxes. This second appeal must specify the reasons for its disagreement with the CFD Administrator's determination.
The CFD Administrator shall interpret this Rate and Method of Apportionment for purposes of clarifying any ambiguity and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals. Any decision of the CFD Administrator shall be subject to appeal to the Council whose decision shall be final and binding as to all persons.
C Prepayment of Special Tax
The Facilities Special Tax applicable to an Assessor’s Parcel in CFD No. 109 may be prepaid according to the prepayment provisions identified in Section H of the Rate and Method of Apportionment. The Services Special Tax may not be prepaid.
APPENDIX A
City of Fontana
Community Facilities District No. 109
(Narra Hills)
RATE AND METHOD OF
APPORTIONMENT
City of Fontana March 28, 2022
Community Facilities District No. 109 (Narra Hills) Page 1
RATE AND METHOD OF APPORTIONMENT FOR
CITY OF FONTANA COMMUNITY FACILITIES DISTRICT NO. 109
(NARRA HILLS)
A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels of Taxable Property in City of Fontana Community Facilities District No . 109 (Narra Hills) ("CFD No. 109") and collected each Fiscal Year, in an amount determined by the City Council of the City of Fontana, through the application of the Rate and Method of Apportionment as described below. All of the real property in CFD No. 109, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre" or "Acreage" means the land area expressed in acres of an Asses sor’s Parcel as shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded County map or the land area calculated to the reaso nable satisfaction of the CFD Administrator using the boundaries set forth on such map or plan. For residential dwelling units within a condominium plan, the Acres applicable to each resi dential dwelling unit shall be determined by dividing (i) the Acres of the underlying lot or par cel on which the residential dwelling unit is constructed or to be constructed, by (ii) the total number of residential dwelling units constructed or to be constructed on such lot or parcel. The sq uare footage of an Assessor’s Parcel is equal to the Acreage of such parcel multiplied by 43,560.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 (commencing with Sect ion 53311) of the California Government Code.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 109, inclu ding but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the County or otherwise); the costs of remitting the Sp ecial Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discha rge of the duties required of it under the Indenture; the costs to the City, CFD No. 109 or an y designee thereof of complying with arbitrage rebate requirements with respect to the S pecial Tax and CFD No. 109 Bonds; the costs to the City, CFD No. 109 or any designee thereof of complying with disclosure requirements of the City, CFD No. 109 or obligated persons associat ed with applicable federal and state securities laws and the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Sp ecial Taxes; the costs of the City, CFD No. 109, or any designee thereof related to the reducti on of the Assigned Facilities Special Tax and Backup Facilities Special Tax in accordance with Se ction C.1 herein; the costs of the City, CFD No. 109 or any designee thereof related to an appea l of the Special Tax; and the City’s annual administration fees and third party expenses relate d to CFD No. 109 Bonds. Administrative Expenses shall also include amounts estimated or ad vanced by the City or CFD No. 109 for any other administrative purposes of CFD No. 109, inclu ding attorney’s fees and other costs related to commencing and pursuing to completion any forecl osure of delinquent Special Taxes.
City of Fontana March 28, 2022
Community Facilities District No. 109 (Narra Hills) Page 2 "Assessor" means the Assessor of the County.
"Assessor's Parcel" means a lot or parcel to which an Assessor’s parce l number is assigned as determined from an Assessor’s Parcel Map or the applicable assessment roll.
"Assessor's Parcel Map" means an official map of the Assessor designating parcels by Assessor’s Parcel number.
"Assigned Facilities Special Tax" means the Facilities Special Tax for each Land Use Class of Developed Property, as determined in accordance with Section C.1.a.(2) below.
"Assigned Services Special Tax" means the Services Special Tax, determined in acco rdance with Section C.2.b herein, that can be levied in an y Fiscal Year on any Assessor’s Parcel of Developed Property.
"Attached Residential Property" means Assessor’s Parcels of Developed Property for which building permits have been issued for a residential dwelling unit that shares, or will share, an inside wall with another residential dwelling unit.
"Authorized Facilities" means those facilities eligible to be funded by CFD No. 109.
"Authorized Services" means those services eligible to be funded by CFD No. 109 in accordance with the Act, including, but not limited to, fire protection and suppression services, maintenance and lighting of parks, parkways, street s, roads and open space, flood and storm protection services and maintenance and operation of any real property or other tangible property with an estimated useful life of five or more years that is owned by the City.
"Backup Facilities Special Tax" means the Facilities Special Tax applicable to eac h Assessor's Parcel of Developed Property, as determined in accordance with Section C.1.a.(3) below.
"Buildout" means, for CFD No. 109, that all expected building permits for residential dwelling units and/or non-residential development to be cons tructed within CFD No. 109 have been issued, as determined by the CFD Administrator.
"CFD Administrator" means an official of the City, or designee thereof , responsible for determining the Special Tax Requirement for Facilit ies and the Special Tax Requirement for Services, providing for the levy and collection of the Special Taxes, and performing other duties as set forth herein.
"CFD No. 109" means City of Fontana Community Facilities District No. 109 (Narra Hills).
"CFD No. 109 Bonds" means any bonds or other debt (as defined in Secti on 53317(d) of the Act), whether in one or more series, issued by CFD No. 109 and secured by the Facilities Special Tax levy on property within the boundaries of CFD No. 109 under the Act.
"City" means the City of Fontana, California.
"Contractual Impositions" means (a) a voluntary contractual assessment established and levied on an Assessor’s Parcel pursuant to Chapter 29 of P art 3 of Division 7 of the California Streets and Highways Code (commencing with Section 5898.10 et seq. ), as amended from time to time,
City of Fontana March 28, 2022
Community Facilities District No. 109 (Narra Hills) Page 3 (b) a special tax established and levied on an Asse ssor’s Parcel pursuant to Section 53328.1 of the California Government Code and related provisio ns of the Act, as amended from time to time, and (c) any other fee, charge, tax or assessm ent established and levied on an individual Assessor’s Parcel pursuant to a contractual agreeme nt or other voluntary consent by the owner thereof.
"Council" means the City Council of the City acting as the legislative body of CFD No. 109.
"County" means the County of San Bernardino.
"Detached Residential Property" means Assessor’s Parcels of Developed Property for which building permits have been issued for a residential dwelling unit that is or is expected to be surrounded by freestanding walls and that does not share an inside wall with any other residential dwelling unit.
"Developed Property" means, for each Fiscal Year, (i) with respect to t he Facilities Special Tax, all Taxable Property, exclusive of Taxable Pub lic Property and Taxable Property Owner Association Property, for which a building permit f or new construction, other than the construction of a garage, parking lot, or parking s tructure, was issued after January 1, 2022 and on or before May 1 of the Fiscal Year preceding the Fiscal Year for which the Facilities Special Taxes are being levied, and (ii) with respect to th e Services Special Tax, all Taxable Property, exclusive of Taxable Public Property and Taxable Pr operty Owner Association Property, (a) for which the Final Residential Subdivision was recorde d prior to the Fiscal Year for which the Services Special Taxes are being levied, or (b) for which a building permit has been issued with respect to Non-Residential Property on or before Ma y 1 of the Fiscal Year preceding the Fiscal Year for which the Services Special Taxes are being levied.
"Facilities Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property within CFD No . 109 to fund the Special Tax Requirement for Facilities, as set forth in Section C.1 herein.
"Final Residential Subdivision" means a Final Subdivision that creates individual l ots for which building permits may be issued for residentia l dwelling units without further subdivision of such property.
"Final Subdivision" means (i) a subdivision of property by recordation of a final map, parcel map, or lot line adjustment approved by the City pu rsuant to the Subdivision Map Act (California Government Code Section 66410 et seq. ) that creates individual lots or parcels for which building permits may be issued, or (ii) for c ondominiums, a final map approved by the City and a condominium plan recorded pursuant to Ca lifornia Civil Code Section 4285 that creates an individual lot(s) for which a building p ermit(s) may be issued without further subdivision. The term "Final Subdivision" shall no t include any Assessor’s Parcel Map or subdivision map or portion thereof that does not cr eate individual lots for which a building permit may be issued, including Assessor’s Parcels that are designated as remainder parcels.
Notwithstanding the above, a condominium plan for w hich one or more building permits have been issued, but no individual lots have been creat ed for such building permits, shall be considered a Final Subdivision, and the portion of the condominium plan for which building permits have been issued shall be defined as Developed Property.
"Fiscal Year" means the period starting July 1 and ending on the following June 30.
City of Fontana March 28, 2022
Community Facilities District No. 109 (Narra Hills) Page 4 "Indenture" means the indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which CFD No. 109 Bonds are issued, as modified, amended and/or supplemented from time to time.
"Land Use Class" means any of the classes listed in Table 1, Table 4, or Table 5 herein.
"Lower Income Households Welfare Exemption Property " means, for each Fiscal Year, an Assessor’s Parcel within the boundaries of CFD No. 109 that is entitled to a welfare exemption under subdivision (g) of Section 214 of the Califor nia Revenue and Taxation Code (or any successor statute), as indicated in the County’s as sessment roll finalized as of the last preceding January 1.
"Maximum Facilities Special Tax" means the maximum Facilities Special Tax, determin ed in accordance with Section C.1 herein, that can be lev ied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
"Maximum Services Special Tax" means the maximum Services Special Tax, determined in accordance with Section C.2 herein, that can be lev ied in any Fiscal Year on any Assessor’s Parcel of Developed Property.
"Minimum Sale Price" means the minimum price at which parcels of a give n Land Use Class have sold or are expected to be sold in a normal ma rketing environment and shall not include prices for such parcels that are sold at a discount to expected sales prices for the purpose of stimulating the initial sales activity with respect to such Land Use Class.
"Non-Residential Property" means all Assessor’s Parcels of Developed Property for which a building permit(s) has been issued by the City perm itting the construction of one or more non- residential structures or facilities.
"Outstanding Bonds" means all CFD No. 109 Bonds which are outstanding under the Indenture.
"Planning Area" means an area designated with the letters "P.A." as shown on Exhibit B.
"Price Point Consultant" means any consultant or firm of such consultants s elected by CFD No. 109 that (a) has substantial experience in perf orming price point studies for residential dwelling units within community facilities districts or otherwise estimating or confirming pricing for residential dwelling units in community facilit ies districts, (b) has recognized expertise in analyzing economic and real estate data that relate s to the pricing of residential dwelling units in community facilities districts, (c) is in fact inde pendent and not under the control of CFD No. 109 or the City, (d) does not have any substantial interest, direct or indirect, with or in (i) CFD No. 109, (ii) the City, (iii) any owner of real pro perty in CFD No. 109, or (iv) any real property in CFD No. 109, and (e) is not connected with CFD N o. 109 or the City as an officer or employee thereof, but who may be regularly retained to make reports to CFD No. 109 or the City.
"Price Point Study" means a price point study or a letter updating a p revious price point study prepared by the Price Point Consultant pursuant to Section C herein.
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Community Facilities District No. 109 (Narra Hills) Page 5 "Property Owner Association Property" means, for each Fiscal Year, (i) any property with in the boundaries of CFD No. 109 for which the owner o f record, as determined from the County’s assessment roll for the Fiscal Year in which the Sp ecial Tax is being levied, is a property owner’s association, including any master or sub-as sociation, or (ii) any property located in a Final Subdivision that was recorded as of the Janua ry 1 preceding the Fiscal Year in which the Special Tax is being levied and which, as determine d from such Final Subdivision, is or will be open space, a common area recreation facility, or a private street. Notwithstanding the foregoing, any property previously classified as De veloped Property and subsequently owned in fee or by easement, or dedicated to, a property own er association, including any master or sub- association, shall remain classified as Developed Property.
"Proportionately" means that the ratio of the actual Facilities Speci al Tax levy to the Assigned Facilities Special Tax is equal for all Assessor’s Parcels of Developed Property, and that the ratio of the actual Services Special Tax levy to the Assi gned Services Special Tax is equal for all Assessor’s Parcels of Developed Property. For Unde veloped Property, "Proportionately" means that the ratio of the actual Facilities Special Tax levy per Acre to the Maximum Facilities Special Tax per Acre is equal for all Assessor’s Parcels of Undeveloped Property. The term "Proportionately" shall similarly be applied to oth er categories of Taxable Property as listed in Section D herein.
"Public Property" means, for each Fiscal Year, any property within t he boundaries of CFD No. 109 that is (i) owned by, irrevocably offered or de dicated to the federal government, the State, the County, the City, or any local government or ot her public agency, provided, however, that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified ac cording to its use; or (ii) encumbered by a public utility easement making impractical its use for any purpose other than that set forth in the easement.
"Rate and Method of Apportionment" means this Rate and Method of Apportionment for CFD No. 109.
"Residential Floor Area" means all of the square footage of living area wit hin the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Residential Floor Area for an Assessor’s Parcel shall be as set forth in the building permit(s) issued fo r such Assessor’s Parcel and/or as set forth in the appropriate records kept by the Building and Sa fety Department of the City, or other applicable City department, as determined by the CFD Administrator.
"Residential Property" means all Assessor’s Parcels of Developed Property for which a building permit(s) has been issued by the City permitting the construction thereon of one or more residential dwelling units.
"Services Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Developed Property within CFD No. 109 to fund the Special Tax Requirement for Services, as set forth in Section C.2 herein.
"Special Tax" means the Facilities Special Tax and/or Services Special Tax, as applicable.
"Special Tax Requirement for Facilities" means, for any Fiscal Year, that amount required, after taking into account available amounts held in the funds and accounts under the Indenture,
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Community Facilities District No. 109 (Narra Hills) Page 6 for the following items: (i) debt service on all Ou tstanding Bonds due in the calendar year commencing in such Fiscal Year; (ii) periodic costs with respect to the CFD No. 109 Bonds, including but not limited to, costs of credit enhan cement and federal rebate payments due in the calendar year commencing in such Fiscal Year; (iii) pay all or a portion of Administrative Expenses; (iv) any amounts required to establish or replenish any reserve funds for all Outstanding Bonds; (v) without duplicating any amou nts described in clause (iv), above, reasonably anticipated Facilities Special Tax delin quencies based on the delinquency rate for the Facilities Special Tax in the previous Fiscal Year, as said levy for delinquencies shall be limited by the Act; and (vi) pay directly for the acquisiti on or construction of Authorized Facilities, provided that the inclusion of such amount does not increase the Facilities Special Tax levy beyond the first step in Section D.1 herein.
"Special Tax Requirement for Services" means that amount required in any Fiscal Year for CFD No. 109 to (i) pay directly for the Authorized Services; (ii) pay Administrative Expenses not funded through the Special Tax Requirement for Facilities as determined by the CFD Administrator; (iii) pay for reasonably anticipated Services Special Tax delinquencies based on the delinquency rate for the Services Special Tax l evy in the previous Fiscal Year; less (iv) a credit for funds available to reduce the annual Ser vices Special Tax levy, as determined by the CFD Administrator, so long as the amount required is not less than zero.
"State" means the State of California.
"Taxable Property" means all of the Assessor's Parcels within the bou ndaries of CFD No. 109 which are not exempt from the Special Tax pursuant to applicable law or Section E herein.
"Taxable Property Owner Association Property" means all Assessor’s Parcels of Property Owner Association Property that are not exempt pursuant to Section E herein.
"Taxable Public Property" means all Assessor’s Parcels of Public Property th at are not exempt pursuant to Section E herein.
"Total Tax Burden" means, for a parcel of residential property within a Land Use Class, for the Fiscal Year in which Total Tax Burden is being calc ulated, the sum of (a) the Assigned Facilities Special Tax for such Fiscal Year, plus (b) the Assi gned Services Special Tax for such Fiscal Year, plus (c) the ad valorem property taxes, special assessments, special taxes for any overlapping community facilities districts, and any other governmental fees, charges (other than fees or charges for services such as sewer and tras h), taxes and assessments (which, for purposes of clarity, do not include Contractual Impositions) collected by the County on ad valorem tax bills and that the CFD Administrator estimates woul d be levied or imposed on such residential property in such Fiscal Year if the residential dwe lling unit thereon or therein had been completed and sold, and was subject to such fees, c harges, taxes and assessments in such Fiscal Year.
"Trustee" means the trustee or fiscal agent under the Indenture.
"Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Taxable Public Property or Taxable Property Owner Association Property.
Please refer to additional definitions in Section H herein relating to the Prepayment of Facilities Special Tax.
City of Fontana March 28, 2022
Community Facilities District No. 109 (Narra Hills) Page 7 B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, commencing with Fiscal Year 2022- 2023, all Taxable Property within CFD No. 109 shall be classified as Developed Property, Undeveloped Property, Taxable Public Property or Taxable Property Owner Association Prop erty, and shall be subject to Special Taxes in accordance with this Rate and Method of Apportio nment determined pursuant to Sections C and D herein.
C. MAXIMUM SPECIAL TAX RATE
1. Facilities Special Tax
At least 30 days prior to the issuance of the first series of CFD No. 109 Bonds, the Assigned Facilities Special Tax on Developed Property (set f orth in Table 1) shall be analyzed in accordance with and subject to the conditions set f orth in this Section C. At such time, the CFD Administrator shall request the Price Point Consultant to prepare a Price Point Study setting forth the Minimum Sale Price of residential property with in each Land Use Class. If based upon such Price Point Study the CFD Administrator calculates that the Total Tax Burden applicable to one or more Land Use Classes of residential property co nstructed or to be constructed within CFD No. 109 shall exceed 1.95% of the Minimum Sale Pric e of such residential property constructed or to be constructed within CFD No. 109, the CFD Ad ministrator shall reduce the Assigned Facilities Special Tax to the extent necessary to c ause the Total Tax Burden that shall apply to residential property within such Land Use Class(es) to not exceed 1.95% of the Minimum Sale Price of such residential property. Each Assigned Facilities Special Tax reduction for a Land Use Class shall be calculated separately, and it sh all not be required that such reduction be proportionate among Land Use Classes. In connectio n with any reduction in the Assigned Facilities Special Tax, the CFD Administrator shall also reduce the Backup Facilities Special Tax in accordance with Section C.1.a.(3) herein. U pon determining the reductions, if any, in the Assigned Facilities Special Tax and Backup Faciliti es Special Tax required pursuant to this Section C, the CFD Administrator shall complete the Certificate to Amend Facilities Special Tax substantially in the form attached hereto as Ex hibit A (the “Certificate to Amend”) and shall execute such completed Certificate to Amend a nd shall deliver such Certificate to Amend to CFD No. 109. Upon receipt thereof, if in satisfa ctory form, CFD No. 109 shall execute such Certificate to Amend. The reduced Assigned Faciliti es Special Tax and Backup Facilities Special Tax specified in such Certificate to Amend shall become effective upon the execution of such Certificate to Amend by CFD No. 109. The Assi gned Facilities Special Tax and Backup Facilities Special Tax reductions permitted pursuan t to this Section C shall be reflected in an amended notice of Special Tax lien which CFD No. 10 9 shall cause to be recorded with the San Bernardino County Recorder as soon as practicable a fter execution of the Certificate to Amend by CFD No. 109. If based upon such Price Point Stu dy the CFD Administrator calculates that the Total Tax Burden applicable to each Land Use Cl ass of residential property constructed or to be constructed within CFD No. 109 does not exceed 1 .95% of the Minimum Sale Price of each such Land Use Class of residential property constru cted or to be constructed within CFD No. 109, then there shall be no reduction in the Assign ed Facilities Special Tax, nor shall there be a reduction in the Backup Facilities Special Tax.
a. Developed Property
(1). Maximum Facilities Special Tax
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Community Facilities District No. 109 (Narra Hills) Page 8 The Maximum Facilities Special Tax for each Assesso r's Parcel classified as Developed Property shall be the greater of (i) the amount der ived by application of the Assigned Facilities Special Tax or (ii) the amount derived b y application of the Backup Facilities Special Tax.
(2). Assigned Facilities Special Tax
Residential Property shall be assigned to Land Use Classes 1 through 20 as listed in Table 1 below based on the type of use and the Resi dential Floor Area for each residential dwelling unit. Non-Residential Propert y shall be assigned to Land Use Class
21. The Assigned Facilities Special Tax that shall be levied in any Fiscal Year for each Land Use Class is shown below in Table 1.
Table 1
Assigned Facilities Special Tax for Developed Property
City of Fontana CFD No. 109 (Narra Hills)
Land
Use
Class Description
Residential Floor
Area (square feet)
Assigned
Facilities
Special Tax
1 Detached Residential Property 4,400 or greater $8 ,186 per unit 2 Detached Residential Property 4,200 to less than 4,400 $7,879 per unit 3 Detached Residential Property 4,000 to less than 4,200 $7,736 per unit 4 Detached Residential Property 3,800 to less than 4,000 $7,592 per unit 5 Detached Residential Property 3,600 to less than 3,800 $7,238 per unit 6 Detached Residential Property 3,400 to less than 3,600 $6,905 per unit 7 Detached Residential Property 3,200 to less than 3,400 $6,551 per unit 8 Detached Residential Property 3,000 to less than 3,200 $6,240 per unit 9 Detached Residential Property 2,800 to less than 3,000 $6,103 per unit 10 Detached Residential Property 2,600 to less than 2,800 $5,873 per unit 11 Detached Residential Property 2,400 to less than 2,600 $5,666 per unit 12 Detached Residential Property 2,200 to less than 2,400 $5,349 per unit 13 Detached Residential Property 2,000 to less than 2,200 $5,118 per unit 14 Detached Residential Property Less than 2,000 $4 ,876 per unit 15 Attached Residential Property 2,000 or greater $ 4,074 per unit 16 Attached Residential Property 1,800 to less than 2,000 $4,025 per unit 17 Attached Residential Property 1,600 to less than 1,800 $3,762 per unit 18 Attached Residential Property 1,400 to less than 1,600 $3,627 per unit 19 Attached Residential Property 1,200 to less than 1,400 $3,445 per unit 20 Attached Residential Property Less than 1,200 $3,320 per unit 21 Non-Residential Property NA $36,640 per Acre
(3). Backup Facilities Special Tax
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Community Facilities District No. 109 (Narra Hills) Page 9 The Backup Facilities Special Tax for an Assessor’s Parcel of Developed Property within a Planning Area shall equal the lesser of (a) the B ackup Facilities Special Tax applicable for such Planning Area set forth in Table 2 below, or (b) in connection with any reduction in the Assigned Facilities Special Tax as set forth in Section C.1 herein, the amount per Acre calculated for each Planning Area pursuant to the formula below:
BFST = AFST ATP
These terms have the following meaning:
BFST = the reduced Backup Facilities Special Tax fo r Developed Property within a Planning Area
AFST = The total estimated Assigned Facilities Spec ial Tax levy within such Planning Area based on the reduced Assigned Facilit ies Special Taxes for Developed Property permitted pursuant to Section C. 1 herein which could be levied on all expected development within such Plan ning Area assuming Buildout of CFD No. 109.
ATP = The sum of the Acreage of all Taxable Property within a Final Subdivision (assuming Buildout of CFD No. 109) within such Plan ning Area (after excluding Public Property and Property Owner Association Prop erty as set forth in Section E.1 herein) multiplied by 85%.
Table 2
Backup Facilities Special Tax for Developed Property
City of Fontana CFD No. 109 (Narra Hills)
Planning
Area
Backup
Facilities
Special Tax
P.A. 1 $28,860 per Acre
P.A. 2 $52,010 per Acre
P.A. 3 $70,530 per Acre
P.A. 4 $69,890 per Acre
Furthermore, all Assessors’ Parcels within CFD No. 109 shall be relieved simultaneously and permanently from the obligation to pay and disc lose the Backup Facilities Special Tax if the CFD Administrator calculates that (i) th e annual debt service required for the Outstanding Bonds, when compared to the Assigned Fa cilities Special Tax that shall be levied against all Assessors’ Parcels of Developed Property in CFD No. 109 results in 110% debt service coverage (i.e., the Assigned Faci lities Special Tax that shall be levied against all Developed Property in CFD No. 109 in ea ch remaining Fiscal Year based on the then existing development is at least equal to the sum of (a) 1.10 times the debt service necessary to support the remaining Outstand ing Bonds in each corresponding Fiscal Year, and (b) Administrative Expenses), and (ii) all authorized CFD No. 109 Bonds have already been issued or the Council has c ovenanted that it shall not issue any additional CFD No. 109 Bonds (except refunding bond s) to be supported by the Facilities Special Tax in CFD No. 109.
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Community Facilities District No. 109 (Narra Hills) Page 10 (4). Multiple Land Uses
In some instances an Assessor’s Parcel may contain both Developed Property and Undeveloped Property. In such cases, the Acreage o f the Assessor’s Parcel shall be allocated between Developed Property and Undeveloped Property based on the portion of the Assessor’s Parcel for which building permits ha d been issued prior to May 1 of the prior Fiscal Year and the portion of the Assessor’s Parcel for which building permits had not been issued prior to May 1 of the prior Fiscal Year.
Furthermore, Developed Property may contain more th an one Land Use Class. In such cases, the Acreage that is considered Developed Pro perty shall be allocated between Residential Property and Non-Residential Property b ased on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Maximum Facilities Special Tax that can be levied on such Assessor’s Parcel shall be the sum of the Maximum F acilities Special Tax that can be levied on each type of property located on that Assessor’s Parcel.
The CFD Administrator’s allocation to each type of property shall be final.
b. Undeveloped Property, Taxable Public Property, a nd Taxable Property Owner Association Property
The Maximum Facilities Special Tax for each Assesso r’s Parcel of Undeveloped Property, Taxable Public Property, and Taxable Prop erty Owner Association Property within a Planning Area shall be the applicable amou nt for such Planning Area set forth in Table 3 below. The Maximum Facilities Special Tax for Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association Property shall not be subject to escalation and shall therefore remain the same in every Fiscal Year.
Table 3
Maximum Facilities Special Tax for Undeveloped Property, Taxable Public Property and Taxable Property Owner Association Property City of Fontana CFD No. 109 (Narra Hills)
Planning
Area
Maximum
Facilities
Special Tax
P.A. 1 $28,860 per Acre
P.A. 2 $52,010 per Acre
P.A. 3 $70,530 per Acre
P.A. 4 $69,890 per Acre
2. Services Special Tax
For purposes of the Services Special Tax, an Assess or(s) Parcel of Developed Property within a Final Residential Subdivision shall be assigned to Land Use Classes 1 through 4, as identified in Table 4 and Table 5 below, based on the Planning Ar ea associated with such Assessor’s Parcel.
Non-Residential Property shall be assigned to Land Use Class 5. Furthermore, the Services Special Tax levied against each Assessor’s Parcel w ithin a Final Residential Subdivision shall be
City of Fontana March 28, 2022
Community Facilities District No. 109 (Narra Hills) Page 11 based on the number of residential dwelling units f or which building permits have been issued or are expected to be issued for such Assessor’s Parce l, as determined by the CFD Administrator based on such Final Residential Subdivision or other available documents.
a. Maximum Services Special Tax
The Fiscal Year 2022-2023 Maximum Services Special Tax for each Land Use Class of Developed Property is shown below in Table 4.
Table 4
Maximum Services Special Tax for Developed Property
City of Fontana CFD No. 109 (Narra Hills)
Fiscal Year 2022-2023
Land
Use
Class
Planning
Area
Description
Maximum
Services
Special Tax
1 P.A. 1 Final Residential Subdivision $1,040 per unit
2 P.A. 2 Final Residential Subdivision $1,040 per unit
3 P.A. 3 Final Residential Subdivision $1,005 per unit
4 P.A. 4 Final Residential Subdivision $1,005 per unit
5 NA Non-Residential Property $6,830 per Acre
b. Assigned Services Special Tax
The Fiscal Year 2022-2023 Assigned Services Special Tax for each Land Use Class of Developed Property is shown below in Table 5.
Table 5
Assigned Services Special Tax for Developed Property
City of Fontana CFD No. 109 (Narra Hills)
Fiscal Year 2022-2023
Land
Use
Class
Planning
Area
Description
Assigned
Services
Special Tax
1 P.A. 1 Final Residential Subdivision $744 per unit
2 P.A. 2 Final Residential Subdivision $744 per unit
3 P.A. 3 Final Residential Subdivision $718 per unit
4 P.A. 4 Final Residential Subdivision $718 per unit
5 NA Non-Residential Property $4,880 per Acre
c. Increase in the Maximum Services Special Tax
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Community Facilities District No. 109 (Narra Hills) Page 12 On each July 1, commencing on July 1, 2023, the Max imum Services Special Tax shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.
d. Increase in the Assigned Services Special Tax
The Assigned Services Special Tax above shall be ap plicable for Fiscal Year 2022-2023, and shall increase thereafter, commencing on July 1 , 2023, and on each July 1 thereafter in an amount estimated to fund the Special Tax Requ irement for Services for the Fiscal Year commencing on such July 1. However, in no cas e shall the Assigned Services Special Tax for an Assessor’s Parcel of Developed P roperty exceed the applicable Maximum Services Special Tax for such Assessor’s Pa rcel of Developed Property in any Fiscal Year.
e. Multiple Land Uses
In some instances an Assessor’s Parcel of Developed Property may contain more than one Land Use Class. In such cases, the Acreage of Developed Property shall be allocated between Residential Property and Non-Residential Pr operty based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Maximum S ervices Special Tax that can be levied on such Assessor’s Parcel shall be the sum o f the Maximum Services Special Tax that can be levied on each type of property located on that Assessor’s Parcel. The CFD Administrator’s allocation to each type of property shall be final.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
1. Facilities Special Tax
Commencing with Fiscal Year 2022-2023, and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requi rement for Facilities and shall provide for the levy of the Facilities Special Tax each Fiscal Year as follows:
First: The Facilities Special Tax shall be levied on each Assessor’s Parcel of Developed Property in an amount equal to 100% of the applicable Assigned Facilities Special Tax;
Second: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first step has been completed, the Facili ties Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property a t up to 100% of the Maximum Facilities Special Tax for Undeveloped Property;
Third: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first two steps have been completed, then the l evy of the Facilities Special Tax on each Assessor's Parcel of Developed Property whose Maxim um Facilities Special Tax is determined through the application of the Backup Facilities Sp ecial Tax shall be increased in equal percentages from the Assigned Facilities Special Ta x up to the Maximum Facilities Special Tax for each such Assessor's Parcel;
Fourth: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first three steps have been completed, th en the Facilities Special Tax shall be levied
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Community Facilities District No. 109 (Narra Hills) Page 13 Proportionately on each Assessor’s Parcel of Taxabl e Public Property and Taxable Property Owner Association Property at up to 100% of the Max imum Facilities Special Tax for Taxable Public Property and Taxable Property Owner Associat ion Property, as needed to satisfy the Special Tax Requirement for Facilities.
Notwithstanding the above, the CFD Administrator sh all, in any Fiscal Year, calculate a levy Proportionately less than 100% of the Assigned Faci lities Special Tax in step one (above), when (i) the CFD Administrator is no longer required to provide for the levy of the Facilities Special Tax pursuant to steps two through four above in ord er to meet the Special Tax Requirement for Facilities; and (ii) all authorized CFD No. 109 Bon ds have already been issued or the Council has covenanted that it shall not issue any addition al CFD No. 109 Bonds (except refunding bonds) to be supported by the Facilities Special Tax.
Further notwithstanding the above, under no circumstances shall the Facilities Special Tax levied in any Fiscal Year against any Assessor’s Parcel of Residential Property for which an occupancy permit for private residential use has been issued (in accordance with Section 53321(d)(3) of the California Government Code), be increased as a cons equence of delinquency or default by the owner of any other Assessor’s Parcel within CFD No. 109 by more than ten percent above the amount that would have been levied in that Fiscal Y ear had there never been any such delinquencies or defaults. To the extent that the levy of the Facilities Special Tax on Residential Property is limited by the provision in the previou s sentence, the levy of the Facilities Special Tax on each Assessor’s Parcel of Non-Residential Pr operty shall continue in equal percentages up to 100% of the applicable Maximum Facilities Special Tax.
2. Services Special Tax
Commencing with Fiscal Year 2022-2023 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement for Services and shall provide for the levy of the Services Special Tax until the total Se rvices Special Tax levy equals the Special Tax Requirement for Services. The Services Special Tax shall be levied each Fiscal Year as follows:
First: The Services Special Tax shall be levied Pr oportionately each Fiscal Year on each Assessor’s Parcel of Developed Property at up to 10 0% of the applicable Assigned Services Special Tax as needed to satisfy the Special Tax Requirement for Services;
Second: If additional monies are needed to satisfy the Special Tax Requirement for Services after the first step has been completed, then the l evy of the Services Special Tax on each Assessor's Parcel of Developed Property shall be in creased in equal percentages from the Assigned Services Special Tax up to the Maximum Ser vices Special Tax for each such Assessor’s Parcel.
E. EXEMPTIONS
1. Facilities Special Tax
No Facilities Special Tax shall be levied on up to the applicable Acreage limit of Public Property and/or Property Owner Association Property establis hed for each Planning Area as set forth in Table 6 below. Tax-exempt status shall be assigned by the CFD Administrator in the chronological order in which property within a Plan ning Area becomes Public Property or Property Owner Association Property. However, shou ld an Assessor’s Parcel no longer be
City of Fontana March 28, 2022
Community Facilities District No. 109 (Narra Hills) Page 14 classified as Public Property or Property Owner Ass ociation Property, it shall, from that point forward, be subject to the Facilities Special Tax.
Table 6
Exempt Acreage Limits
City of Fontana CFD No. 109 (Narra Hills)
Planning
Area
Exempt
Acreage
Limit
P.A. 1 64.08 Acres
P.A. 2 0.00 Acres
P.A. 3 0.00 Acres
P.A. 4 0.00 Acres
Notwithstanding the above, an Assessor’s Parcel wit hin a Planning Area that is transferred to a public agency or property owner’s association prior to the issuance of the first series of CFD No. 109 Bonds that causes the Acreage of Public Pro perty and Property Owner Association Property within such Planning Area to exceed the ap plicable Acreage limit that can be designated by the CFD Administrator under this Sect ion E.1 shall also be exempted from paying the Special Tax.
Public Property or Property Owner Association Prope rty that is not exempt from the Facilities Special Tax under this Section E.1 shall be subject to the levy of the Facilities Special Tax and shall be taxed Proportionately as part of the fourt h step in Section D herein, at up to 100% of the applicable Maximum Facilities Special Tax for Taxab le Public Property and Taxable Property Owner Association Property.
In addition, no Facilities Special Tax shall be lev ied on Lower Income Households Welfare Exemption Property, provided that if, in any Fiscal Year, applicable law does not require that an Assessor’s Parcel that is Lower Income Households W elfare Exemption Property be exempt from the Facilities Special Tax, then the Facilities Special Tax shall be levied on such Assessor’s Parcel in accordance with this Rate and Method of A pportionment as if such Assessor’s Parcel were not classified as Lower Income Households Welfare Exemption Property.
2. Services Special Tax
No Services Special Tax shall be levied on Undevelo ped Property, Taxable Public Property, Taxable Property Owner Association Property, Public Property, or Property Owner Association Property.
In addition, no Services Special Tax shall be levie d on Lower Income Households Welfare Exemption Property, provided that if, in any Fiscal Year, applicable law does not require that an Assessor’s Parcel that is Lower Income Households W elfare Exemption Property be exempt from the Services Special Tax, then the Services Sp ecial Tax shall be levied on such Assessor’s Parcel in accordance with this Rate and Method of A pportionment as if such Assessor’s Parcel were not classified as Lower Income Households Welfare Exemption Property.
F. MANNER OF COLLECTION
City of Fontana March 28, 2022
Community Facilities District No. 109 (Narra Hills) Page 15 The Special Tax shall be collected in the same mann er and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 10 9 may directly bill the Special Tax, and/or may collect Special Taxes at a different tim e or in a different manner if necessary to meet financial obligations, and, to the extent of the Fa cilities Special Tax, may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels.
G. APPEALS AND INTERPRETATIONS
Any landowner or resident who feels that the amount of the Special Tax levied on his/her Assessor’s Parcel is in error may submit a written appeal to the CFD Administrator, provided that the appellant is current in his/her payment of Special Taxes. During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The CFD Admini strator shall review the appeal, meet with the appellant if the CFD Administrator deems necess ary, and advise the appellant of its determination. If the CFD Administrator agrees wit h the appellant, a cash refund shall not be made (except for the last year of levy), but the am ount of the Special Tax levied shall be appropriately modified through an adjustment to the Special Tax levy in the following Fiscal Year. If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has 30 d ays in which to appeal to the Council by filing a written notice of appeal with the City Clerk, pro vided that the appellant is current in his/her payment of Special Taxes. This second appeal must specify the reasons for its disagreement with the CFD Administrator's determination.
The CFD Administrator shall interpret this Rate and Method of Apportionment for purposes of clarifying any ambiguity and make determinations re lative to the annual administration of the Special Tax and any landowner or resident appeals. Any decision of the CFD Administrator shall be subject to appeal to the Council whose dec ision shall be final and binding as to all persons.
H. PREPAYMENT OF FACILITIES SPECIAL TAX
Under this Rate and Method of Apportionment, an Ass essor’s Parcel within CFD No. 109 is permitted to prepay the Facilities Special Tax. The obligation of the Assessor’s Parcel to pay the Facilities Special Tax may be fully or partially pr epaid and permanently satisfied as described herein, provided that a prepayment may be made only for Assessor’s Parcels of Developed Property, or for an Assessor’s Parcel of Undevelope d Property for which a building permit has been issued after January 1, 2022, and only if ther e 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 Facilities Special Tax obligation sha ll provide the CFD Administrator with written notice of intent to prepay. Within 30 days of rece ipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount for such Assessor's Parcel. The CFD Administrator may charge such owner a reasonabl e fee for providing this service. If there are Outstanding Bonds, prepayment must be made not less than 30 days prior to a date that notice of redemption of CFD No. 109 Bonds from the proceeds of such prepayment may be given by the Trustee pursuant to the Indenture that is specified in the report of the Facilities Special Tax Prepayment Amount (defined below).
The following additional definitions apply to this Section H:
City of Fontana March 28, 2022
Community Facilities District No. 109 (Narra Hills) Page 16 "CFD Public Facilities Costs" means either $37,115,500 in 2022 dollars, which sh all increase by the Construction Inflation Index on July 1, 2023 , and on each July 1 thereafter, or such lower number as (i) shall be determined by the CFD Admini strator as sufficient to provide funding for the Authorized Facilities under the authorized bond ing program for CFD No. 109, or (ii) shall be determined by the Council concurrently with a covenant that it shall not issue any more CFD No. 109 Bonds (except refunding bonds) to be supported by the Facilities Special Tax levy under this Rate and Method of Apportionment.
"Construction Inflation Index" means the annual percentage change in the Engineer ing News Record Building Cost Index for the City of Los Ange les, measured as of the month of December in the calendar year which ends in the previous Fis cal Year. In the event this index ceases to be published, the Construction Inflation Index shall b e another index as determined by the CFD Administrator that is reasonably comparable to the Engineering News Record Building Cost Index for the City of Los Angeles.
"Future Facilities Costs" means the CFD Public Facilities Costs minus (i) co sts of Authorized Facilities previously paid from the Improvement Fun d, (ii) moneys currently on deposit in the Improvement Fund available to pay costs of Authoriz ed Facilities, and (iii) the amount the CFD Administrator reasonably expects to derive from the reinvestment of these funds.
"Improvement Fund" means a fund or account specifically identified in the Indenture (or prior to the issuance of the first series of CFD No. 109 Bonds a fund or account held by the City) to hold funds which are currently available for expend iture to acquire or construct Authorized Facilities.
"Previously Issued Bonds" means, for any Fiscal Year, all Outstanding Bonds that are outstanding under the Indenture after the first int erest and/or principal payment date following the current Fiscal Year.
1. Prepayment in Full
The Facilities Special Tax Prepayment Amount (defin ed below) shall be calculated as summarized below (capitalized terms as defined below):
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
Total: equals Facilities Special Tax Prepayment Amo unt
As of the proposed date of prepayment, the Faciliti es Special Tax Prepayment Amount shall be calculated according to the following paragraphs:
1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.
2. For Assessor’s Parcels of Developed Property, compu te the Assigned Facilities Special Tax and Backup Facilities Special Tax for the Asses sor’s Parcel to be prepaid. For
City of Fontana March 28, 2022
Community Facilities District No. 109 (Narra Hills) Page 17 Assessor’s Parcels of Undeveloped Property for whic h a building permit has been issued after January 1, 2022, compute the Assigned Facilit ies Special Tax and Backup Facilities Special Tax for that Assessor’s Parcel as though it was already designated as Developed Property, based upon the building permit which has already been issued for such Assessor’s Parcel.
3. (a) Divide the Assigned Facilities Special Tax comp uted pursuant to paragraph 2 by the total estimated Assigned Facilities Special Tax lev y for CFD No. 109 based on the Assigned Facilities Special Taxes for Developed Pro perty which could be levied on all expected development assuming Buildout of CFD No. 1 09, excluding any Assessor’s Parcels which have been prepaid, and
(b) Divide the Backup Facilities Special Tax comput ed pursuant to paragraph 2 by the total estimated Backup Facilities Special Taxes at Buildout for the entire CFD No. 109, excluding any Assessor’s Parcels which have been prepaid.
4. Multiply the larger quotient computed pursuant to p aragraph 3(a) or 3(b) by the Previously Issued Bonds to compute the amount of Pr eviously Issued Bonds to be redeemed (the "Bond Redemption Amount").
5. Multiply the Bond Redemption Amount computed pursua nt to paragraph 4 by the applicable redemption premium (e.g., the redemption price minus 100%), if any, on the Previously Issued Bonds to be redeemed (the "Redemption Premium").
6. Compute the current Future Facilities Costs.
7. Multiply the larger quotient computed pursuant to p aragraph 3(a) or 3(b) by the amount determined pursuant to paragraph 6 to compute the a mount of Future Facilities Costs to be prepaid (the "Future Facilities Amount").
8. Compute the amount needed to pay interest on the Bo nd Redemption Amount from the first bond interest and/or principal payment date f ollowing the current Fiscal Year until the redemption date for the Previously Issued Bonds specified in the report of the Facilities Special Tax Prepayment Amount.
9. Determine the Facilities Special Tax levied on the Assessor’s Parcel in the current Fiscal Year which has not yet been paid.
10. Compute the minimum amount the CFD Administrator re asonably expects to derive from the reinvestment of the Facilities Special Tax Prep ayment Amount, less any interest earnings attributed to the Future Facilities Amount , and less any interest earnings attributed to the Administrative Fees and Expenses (defined below) from the date of prepayment until the redemption date for the Previo usly Issued Bonds to be redeemed with the prepayment.
11. Add the amounts computed pursuant to paragraphs 8 a nd 9 and subtract the amount computed pursuant to paragraph 10 (the "Defeasance Amount").
12. The administrative fees and expenses of CFD No. 109 are as calculated by the CFD Administrator and include the costs of computation of the prepayment, the costs to invest
City of Fontana March 28, 2022
Community Facilities District No. 109 (Narra Hills) Page 18 the prepayment proceeds, the costs of redeeming CFD No. 109 Bonds, and the costs of recording any notices to evidence the prepayment an d the redemption (the "Administrative Fees and Expenses").
13. The reserve fund credit (the "Reserve Fund Credit") shall equal the lesser of: (a) the expected reduction in the reserve requirement (as d efined in the Indenture), if any, associated with the redemption of Previously Issued Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new re serve requirement (as defined in the Indenture) in effect after the redemption of Previo usly Issued Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero. No Reserve Fu nd Credit shall be granted if the amount then on deposit in the reserve fund for the Previously Issued Bonds is below 100% of the reserve requirement (as defined in the Indenture).
14. If any capitalized interest for the Previously Issued Bonds will not have been expended as of the date immediately following the first interes t and/or principal payment following the current Fiscal Year, a capitalized interest cre dit shall be calculated by multiplying the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the expected balance in the capitalized interest fund or account under the Indenture after such first interest and/or principal payment date (the "Capitalized Interest Credit").
15. The Facilities Special Tax prepayment is equal to t he sum of the amounts computed pursuant to paragraphs 4, 5, 7, 11 and 12, less the amounts computed pursuant to paragraphs 13 and 14 (the "Facilities Special Tax Prepayment Amount").
2. Prepayment in Part
The amount of the prepayment shall be calculated as in Section H.1; except that a partial prepayment shall be calculated according to the following formula:
PP = [(PE – A) x F] + A
These terms have the following meaning:
PP = the partial prepayment.
PE = the Facilities Special Tax Prepayment Amount calculated according to Section H.1.
F = the percentage, expressed as a decimal, by whic h the owner of the Assessor’s Parcel is partially prepaying the Facilities Special Tax.
A = the Administrative Fees and Expenses calculated according to Section H.1.
3. General Provisions Applicable to the Prepayment of Facilities Special Tax
(a). Use of the Facilities Special Tax Prepayment Amount
The Facilities Special Tax Prepayment Amount, less the Administrative Fees and Expenses calculated according to Section H.1 which shall be retained by CFD No. 109, and less the Future Facilities Amount calculated ac cording to Section H.1 which shall be deposited into the Improvement Fund, shall be depos ited into specific funds established under the Indenture, to fully or partially redeem a s many Outstanding Bonds as possible,
City of Fontana March 28, 2022
Community Facilities District No. 109 (Narra Hills) Page 19 and, if amounts are less than $5,000, to make debt service payments on the Outstanding Bonds.
(b). Full Prepayment of Facilities Special Tax
Upon confirmation of the payment of the current Fis cal Year’s entire Facilities Special Tax obligation, the CFD Administrator shall remove the current Fiscal Year’s Facilities Special Tax levy for such Assessor’s Parcel from th e County tax rolls. With respect to any Assessor’s Parcel that is prepaid in accordance with Section H.1, the CFD Administrator shall cause a suitable notice to be r ecorded in compliance with the Act, to indicate the prepayment of the Facilities Special T ax and the release of the Facilities Special Tax lien on such Assessor’s Parcel, and the obligation of such Assessor’s Parcel to pay the Facilities Special Tax shall cease.
(c). Partial Prepayment of Facilities Special Tax
With respect to any Assessor’s Parcel that is parti ally prepaid, the CFD Administrator shall (i) distribute or cause to be distributed the funds remitted to it according to Section H.3.(a) and (ii) indicate in the records of CFD No. 109 that there has been a partial prepayment of the Facilities Special Tax and that a portion of the Facilities Special Tax with respect to such Assessor’s parcel, equal to th e outstanding percentage (1.00 – F) of the remaining Maximum Facilities Special Tax, shall continue to be levied on such Assessor’s Parcel pursuant to Section D herein.
(d). Debt Service Coverage
Notwithstanding the foregoing, no prepayment of the Facilities Special Tax shall be allowed unless the amount of Facilities Special Tax that may be levied on Taxable Property (assuming Buildout) within CFD No. 109 in each future Fiscal Year (after excluding Public Property and Property Owner Associ ation Property as set forth in Section E.1 herein), after the proposed prepayment, is at least equal to the sum of (i) 1.10 times the debt service necessary to support the rem aining Outstanding Bonds in each corresponding Fiscal Year, and (ii) Administrative Expenses.
I. TERM OF SPECIAL TAX
The Facilities Special Tax shall be levied for a pe riod not to exceed fifty years commencing with Fiscal Year 2022-2023. The Services Special Tax sh all be levied in perpetuity to fund the Special Tax Requirement for Services.
T/Clients/FONTANA/MELLO/CFD Nos. 109 (Narra Hills)/ Rate and Method/Fontana CFD No. 109 (Narra Hills) R MA for ROI.docx Printed: March 28, 2022
A-1
EXHIBIT A
CERTIFICATE TO AMEND FACILITIES SPECIAL TAX
CFD NO. 109 CERTIFICATE
1. Pursuant to Section C.1 of the Rate and Method o f Apportionment (the "Rate and Method") for City of Fontana Community Facilities District N o. 109 (Narra Hills) ("CFD No. 109"), the Assigned Facilities Special Tax and the Backup Facilities Special Tax for Developed Property within CFD No. 109 has been reduced as described herein.
(a) The information in Table 1 of the Rate and Method r elating to the Assigned Facilities Special Tax for Developed Property within CFD No. 1 09 shall be modified as follows:
Land
Use
Class Description
Residential Floor
Area (square feet)
Original
Assigned
Facilities
Special Tax
Modified
Assigned
Facilities
Special Tax
1 Detached Residential Property 4,400 or greater $8 ,186 per unit $[____] per unit 2 Detached Residential Property 4,200 to less than 4,400 $7,879 per unit $[____] per unit 3 Detached Residential Property 4,000 to less than 4,200 $7,736 per unit $[____] per unit 4 Detached Residential Property 3,800 to less than 4,000 $7,592 per unit $[____] per unit 5 Detached Residential Property 3,600 to less than 3,800 $7,238 per unit $[____] per unit 6 Detached Residential Property 3,400 to less than 3,600 $6,905 per unit $[____] per unit 7 Detached Residential Property 3,200 to less than 3,400 $6,551 per unit $[____] per unit 8 Detached Residential Property 3,000 to less than 3,200 $6,240 per unit $[____] per unit 9 Detached Residential Property 2,800 to less than 3,000 $6,103 per unit $[____] per unit 10 Detached Residential Property 2,600 to less than 2,800 $5,873 per unit $[____] per unit 11 Detached Residential Property 2,400 to less than 2,600 $5,666 per unit $[____] per unit 12 Detached Residential Property 2,200 to less than 2,400 $5,349 per unit $[____] per unit 13 Detached Residential Property 2,000 to less than 2,200 $5,118 per unit $[____] per unit 14 Detached Residential Property Less than 2,000 $4 ,876 per unit $[____] per unit 15 Attached Residential Property 2,000 or greater $ 4,074 per unit $[____] per unit 16 Attached Residential Property 1,800 to less than 2,000 $4,025 per unit $[____] per unit 17 Attached Residential Property 1,600 to less than 1,800 $3,762 per unit $[____] per unit 18 Attached Residential Property 1,400 to less than 1,600 $3,627 per unit $[____] per unit 19 Attached Residential Property 1,200 to less than 1,400 $3,445 per unit $[____] per unit 20 Attached Residential Property Less than 1,200 $3,320 per unit $[____] per unit 21 Non-Residential Property NA $36,640 per Acre $[_ ___] per Acre
(b) The Backup Facilities Special Tax for Developed Pro perty within a Planning Area, set forth in Table 2 within Section C.1.a.(3) of th e Rate and Method, shall be modified as follows:
A-2
Planning
Area
Original
Backup
Facilities
Special Tax
Modified
Backup
Facilities
Special Tax
P.A. 1 $28,860 per Acre $[____] per Acre
P.A. 2 $52,010 per Acre $[____] per Acre
P.A. 3 $70,530 per Acre $[____] per Acre
P.A. 4 $69,890 per Acre $[____] per Acre
2. The Assigned Facilities Special Tax and the Back up Facilities Special Tax for Developed Property may only be reduced prior to the first issuance of CFD No. 109 Bonds.
3. Upon execution of the certificate by CFD No. 109, C FD No. 109 shall cause an amended notice of Special Tax lien for CFD No. 109 to be re corded reflecting the reductions set forth herein.
All capitalized terms used herein shall have the meanings set forth in the Rate and Method.
By:___________________________ Date:______________ ________ CFD Administrator
By execution hereof, the undersigned acknowledge, o n behalf of CFD No. 109, receipt of this certificate and modification of the Rate and Method as set forth in this certificate.
CITY OF FONTANA COMMUNITY FACILITIES DISTRICT No. 109 (NARRA HILLS)
By:___________________________ Date:______________ ________
B
EXHIBIT B
PLANNING AREAS
Planning
Area (P.A.) Legal Description
P.A. 1 The land area within CFD No. 109 which is not located within P.A. 2, P.A. 3, or P.A. 4
P.A. 2 Lots 156 through 233, inclusive, of Tentativ e Tract Map No. 20010 P.A. 3 Lots 234 and 235 of Tentative Tract Map No. 20010 P.A. 4 Lot 236 of Tentative Tract Map No. 20010
Reference is hereby made to Tentative Tract Map No. 20010 approved by City Council on February 26, 2019 for a description of the lines an d dimensions of the lots listed above. The area geographically identified within the boundaries of an applicable Planning Area may be amended from time-to-time or modified pursuant to a final m ap or precise site plan for such property only at the discretion of the CFD Administrator provided th at such change will not reduce the amount of Maximum Facilities Special Tax below the amount req uired to equal at least 1.1 times the maximum annual debt service on all Outstanding Bo nds, plus the Administrative Expenses.
APPENDIX B
City of Fontana
Community Facilities District No. 109
(Narra Hills)
BOUNDARY MAP
5000 BIRCH STREET, SUITE 3000
NEWPORT BEACH, CA 92660
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