City of Manteca
Community Facilities District No. 2023-1 (Villa Ticino West Facilities), Improvement Area No. 1 Page 1
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
FOR CITY OF MANTECA
COMMUNITY FACILITIES DISTRICT NO. 2023-1
(VILLA TICINO WEST FACILITIES)
IMPROVEMENT AREA NO. 1
A Special Tax, as hereinafter defined, shall be levied and collected within Improvement Area No. 1 of the City of Manteca Community Facilities District No. 2023-1 (Villa Ticino West Facilities) each Fiscal Year commencing in Fiscal Year 2023/24, in an amount determined by the application of the procedures below. All Taxable Property within Improvement Area No. 1, as hereinafter defined, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided including property subsequently annexed to Improvement Area No. 1 unless a separate Rate and Method of Apportionment is adopted for the annexed area.
A. DEFINITIONS
The terms hereinafter set forth have the following meaning:
“Accessory Dwelling Unit” or “ADU” means all Assessor’s Parcels of Residential Property for which a building permit(s) has been issued for an “Accessory Dwelling Unit” as defined in California Government Code Section 65852.2(j)(1), as may be amended from time to time, that is accessory to a primary Unit. "Acre” or “Acreage" means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map.
In the event that the Assessor’s Parcel Map shows no acreage, the Acreage for any Assessor’s Parcel may be determined by the CFD Administrator based upon, in the CFD Administrator’s discretion, the applicable condominium plan, final map, parcel map, Assessor’s Data or by using available spatial data and GIS. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1, Division 2 of Title 5 of the Government Code of the State. "Administrative Expenses" means the actual or reasonably estimated costs directly related to the administration of Improvement Area No. 1 including, but not limited to, the following: the costs of any paying agents/fiscal agents/trustees related to Improvement Area No. 1 Bond payments (including the fees and expenses of related counsel); the costs of computing the Annual Special Tax Requirement, the Special Taxes and of preparing the collection schedules for the Special Taxes; the costs of collecting the Special Taxes, including any charges levied by the County Auditor’s Office, County Tax Collector’s Office or County Treasurer’s Office; the costs of the City or designee in complying with the disclosure requirements associated with applicable federal and state securities laws, or otherwise related to Improvement Area No. 1 or Improvement Area No. 1 Bonds; the City’s annual administration fees and third party expenses; costs of responding to public inquiries regarding the Special Taxes; the costs of the City or designee related to an appeal of the Special Tax or interpretation of this Rate and Method of Apportionment of Special Taxes; amounts needed to pay any required arbitrage rebate to the federal government related to Improvement Area No. 1 Bonds; the costs associated with the release of funds from any escrow account; and the costs of commencing and pursuing to completion any foreclosure action arising from delinquent Special Taxes in Improvement Area No. 1. Administrative Expenses shall also Exhibit "A" ATTACHMENT 2
City of Manteca
Community Facilities District No. 2023-1 (Villa Ticino West Facilities), Improvement Area No. 1 Page 2 include amounts estimated or advanced by the City or Improvement Area No. 1 for any other administrative purposes of Improvement Area No. 1.
"Annual Special Tax Requirement" means that amount required in any Fiscal Year for Improvement Area No. 1 to (1) pay Debt Service on all Outstanding Improvement Area No. 1 Bonds due in the Debt Year that commences in such Fiscal Year; (2) pay debt service on bonds expected to be issued by Improvement Area No. 1 due in the Debt Year that commences in such Fiscal Year; (3) Administrative Expenses; (4) provide any amount required to establish or replenish a reserve fund in connection with any Improvement Area No. 1 Bonds; (5) provide an amount equal to reasonably anticipated Special Tax delinquencies based on the delinquency rate for Special Taxes levied in the previous Fiscal Year as determined by the CFD Administrator, as limited by the Act, and without duplicating any amounts described in clauses (3) or (4); and (6) account for Pay-As-You-Go Expenditures for the Authorize Facilities. The amounts referred to in clauses (1) through (5) of the preceding sentence may be reduced in any Fiscal Year (in the City's sole discretion) by (i) surplus balances in funds and accounts for Improvement Area No. 1 Bonds to the extent that such balances are available to apply against Debt Service pursuant to the Indenture, (ii) proceeds from the collection of penalties associated with delinquent Special Tax, and (iii) any other revenues available to pay Debt Service on the Outstanding Improvement Area No. 1 Bonds or other indebtedness as determined by the CFD Administrator.
“Assessor’s Data” means the property characteristic data compiled and maintained by the County Assessor for each Assessor’s Parcel, including, but not limited to, Assessor’s Parcel Number, Acreage, Building Square Footage, and Units.
"Assessor’s Parcel" or “Parcel” means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
"Assessor’s Parcel Map" means an official map of the County Assessor designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” or “APN” means, with respect to an Assessor’s Parcel, that number assigned to such Assessor’s Parcel by the County for purposes of identification. “Assigned Special Tax” means the Assigned Special Tax determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property. “Authorized Facilities” means the public facilities authorized to be financed, in whole or in part, by Improvement Area No. 1 Bonds or Special Tax revenue dedicated to Pay-As-You-Go Expenditures for Improvement Area No. 1.
"Backup Special Tax" means the Backup Special Tax applicable to each Assessor’s Parcel of Developed Property, as determined in accordance with the applicable subsection of Section C below. “Building Permit” means a permit issued by the City for new construction of a residential or nonresidential building on an Assessor’s Parcel. “Building Square Feet” or “BSF” means all of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Building Square Feet shall be made by reference to the building Exhibit "A" ATTACHMENT 2
City of Manteca
Community Facilities District No. 2023-1 (Villa Ticino West Facilities), Improvement Area No. 1 Page 3 permit(s) issued for such residential dwelling unit. In the event that the building permit does not show Building Square Feet, other records of the City or Assessor’s Data shall be used as determined by the CFD Administrator.
"CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Annual Special Tax Requirement, and otherwise providing for the levy and collection of the Special Taxes. "CFD No. 2023-1" means City of Manteca Community Facilities District No. 2023-1 (Villa Ticino West Facilities), established by the City Council pursuant to the Act. “City” means the City of Manteca, California.
“City Council” means the City Council of the City, acting as the legislative body of CFD No. 2023-1. "County" means the County of San Joaquin, California.
“Debt Service” means for each Debt Year, the total amount of principal and interest due on any Outstanding Improvement Area No. 1 Bonds.
“Debt Year” means the twelve (12) month period ending on the second debt service payment date of each calendar year.
"Developed Property" means, in any Fiscal Year, all Taxable Property in Improvement Area No. 1 for which a Building Permit for new construction was issued by the City prior to June 30 of the preceding Fiscal Year. "Development Class" means, individually, Developed Property, Final Map Property, Taxable Property Owners Association Property and Taxable Public Property. “Exempt Property” means all property located within the boundaries of Improvement Area No. 1 which is exempt from the Special Tax pursuant to the Act or Section E below. “Final Map Property” means, in any Fiscal Year, all Residential Lots created within a Final Subdivision Map which has recorded prior to June 30 of the preceding Fiscal Year. "Final Subdivision Map" means a final subdivision map, parcel map or lot line adjustment, approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285, that creates individual lots for which Building Permits may be issued without further subdivision of such property. "Fiscal Year" means the period starting July 1 and ending on the following June 30. “GIS” or “Geographic Information System” means a system designed to capture, store, manipulate, analyze, manage, and present spatial or geographic data. “Improvement Area No. 1” means Improvement Area No. 1 of CFD No. 2023-1. “Improvement Area No. 1 Bonds” means bonds or other Debt (as defined in section 53317 of the Act), whether in one or more series, issued or assumed by or on behalf of the City for Improvement Area No. 1 under the Act, and secured by pledge of the Special Taxes.
Exhibit "A" ATTACHMENT 2
City of Manteca
Community Facilities District No. 2023-1 (Villa Ticino West Facilities), Improvement Area No. 1 Page 4 “Indenture” means the indenture, fiscal agent agreement, resolution, or other instrument pursuant to which Improvement Area No. 1 Bonds are issued, as modified, amended, and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Class” means any of the classes listed in Table 1 in Section C herein. "Maximum Special Tax” means the Maximum Special Tax, determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property. “Non-Residential Property” means, in any Fiscal Year all Assessor’s Parcels of Developed Property for which a building permit(s) was issued for a structure intended for non-residential use. “Open Space Property” means property within the boundaries of Improvement Area No. 1 which (i) has been designated with specific boundaries and Acreage on a final subdivision map as open space, (ii) has been irrevocably offered for dedication as open space to the federal government, the State, the County, the City, or any other public agency, or (iii) is encumbered by an easement or other restriction required by the City limiting the use of such property to open space. “Outstanding Improvement Area No. 1 Bonds” means all Improvement Area No. 1 Bonds which are outstanding under and in accordance with the provisions of the Indenture. “Pay-As-You-Go Expenditure” means Special Tax revenue, which is used or set aside for Authorized Facilities, including for Authorized Facilities to be constructed or acquired by Improvement Area No. 1.
Pay-As-You-Go Expenditures may be included in the Special Tax Requirement for 15 years, beginning in Fiscal Year 2023/24 and ending after Fiscal Year 2037/38. “Property Owner’s Association” or “POA” means any duly constituted property owner’s association. As used in this definition, a Property Owner’s Association includes any home-owner’s association, condominium owner’s association, master or sub-association or non-residential owner’s association. “Property Owner’s Association Property” means any property within the boundaries of Improvement Area No. 1 which is (a) owned by a Property Owner’s Association or (b) designated with specific boundaries and acreage on a final subdivision map as Property Owner Association Property. "Proportionately" means, for each Development Class, 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 Parcels assigned to such Development Class.
“Public Property” means any property within the boundaries of Improvement Area No. 1 which (i) is owned by a public agency, (ii) has been irrevocably offered for dedication to a public agency, or (iii) is designated with specific boundaries and Acreage on a final subdivision map as property which will be owned by a public agency. For purposes of this definition, a public agency includes the federal government, the State, the County, the City, school districts, or any other governmental agency. “Rate and Method of Apportionment” means this Rate and Method of Apportionment of Special Taxes for Improvement Area No. 1.
“Residential Lot” means, an individual residential lot within a recorded Final Subdivision Map on which a Building Permit has been or is permitted to be issued for construction of one or more Units.
Exhibit "A" ATTACHMENT 2
City of Manteca
Community Facilities District No. 2023-1 (Villa Ticino West Facilities), Improvement Area No. 1 Page 5 “Residential Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more residential Units. "Special Tax(es)" means the special tax or special taxes to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property within Improvement Area No. 1 to fund the Annual Special Tax Requirement. "State" means the State of California.
"Taxable Property" means all the Assessor’s Parcels within the boundaries of Improvement Area No. 1 that are not exempt from the Special Tax pursuant to law or Section E below. “Taxable Property Owner Association Property” means all Assessors Parcels of Property Owner Association Property that are not exempt pursuant to Section E herein. “Taxable Public Property” means all Assessors Parcels of Public Property that are not exempt pursuant to Section E herein.
"Trustee" meansthe trustee or fiscal agent or paying agent acting as such under the applicable Indenture. “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Final Map Property, Taxable Property Owner Association Property, or Taxable Public Property. “Unit” means an individual single family detached residential unit or an individual residential unit within a duplex, triplex, fourplex, townhome or condominium structure. The number of Units assigned to each Assessor’s Parcel may be determined by (i) referencing Assessor’s Data, (ii) site surveys and physical unit counts, and/or (iii) other research by the CFD Administrator. An Accessory Dwelling Unit shall not be considered a Unit for the purposes of the Special Tax.
“Welfare Exempt Property” means, in any Fiscal Year, all Parcels within the boundaries of Improvement Area No. 1 that (a) have been granted a welfare exemption by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code indicated in the Assessor’s Data finalized as of January 1 of the previous Fiscal Year, and (b) are exempt from the Special Tax pursuant to Section 53340(c) of the Act.
Pursuant to Section 53340(c) of the Act, after the issuance of the first series of Improvement Area No. 1 Bonds, as applicable, any Assessor’s Parcels that received a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code shall not be classified as Welfare Exempt Property and will be subject to the Special Tax.
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, the CFD Administrator shall determine the Assessor’s Parcel Numbers for all Taxable Property within Improvement Area No. 1 for the then-current Fiscal Year. To the extent a Parcel or Parcels of Taxable Property are subdivided, consolidated, or otherwise reconfigured, the Maximum Special Tax shall be assigned to the new Assessor’s Parcels Numbers pursuant to Section C. The CFD Administrator shall also determine: (i)the appropriate Development Class for each Parcel of Taxable Property; (ii) the number of Units or Acreage each Parcel contains; (iii) the property type, i.e., Residential Property and Non-Residential Property, etc.; and (iv) the Annual Special Tax Requirement for the Fiscal Year. The Land Use Class and associated Assigned Special Tax for Residential Property shall be based on the number of Units on such Assessor’s Parcel and the Building Square Feet of the Units located on such Assessor’s Parcel.
Exhibit "A" ATTACHMENT 2
City of Manteca
Community Facilities District No. 2023-1 (Villa Ticino West Facilities), Improvement Area No. 1 Page 6 The Assigned Special Tax for Non-Residential Property, Taxable Property Owner Association Property and Taxable Public Property shall be based on the Acreage of the Assessor’s Parcel.
C. MAXIMUM SPECIAL TAX RATES
1. Developed Property
The Maximum Special Tax for each Assessor’s Parcel of Developed Property shall be the greater of (i) the amount derived by application of the Assigned Special Tax or (ii) the amount derived by application of the Backup Special Tax.
a. Assigned Special Tax
The Assigned Special Tax for each Assessor’s Parcel of Developed Property is shown in Table 1.
TABLE 1
ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
IMPROVEMENT AREA NO. 1
FISCAL YEAR 2023/24
Land Use
Class Description Building Square Feet
Assigned Special
Tax
1 Residential Property > 2,700 BSF $1,911.00 per Unit
2 Residential Property 2,501 – 2,700 BSF $1,814.98 per Unit 3 Residential Property 2,301 – 2,500 BSF $1,574.95 per Unit 4 Residential Property 2,101 – 2,300 BSF $1,985.11 per Unit 5 Residential Property 1,901 – 2,100 BSF $2,074.41 per Unit 6 Residential Property 1,701 – 1,900 BSF $1,703.54 per Unit 7 Residential Property < 1,701 BSF $1,708.68 per Unit
8 Accessory Dwelling Unit N/A $0.00 per Unit
9 Non-Residential Property N/A $0.00 per Acre
b. Backup Special Tax
The Fiscal Year 2023-2024 aggregate Backup Special Tax attributable to Developed Property will equal the Maximum Special Tax as determined in Section 2.b., below, when such property became Final Map Property.
c. Increase in the Assigned Special Tax and Backup Special Tax On each July 1, commencing on July 1, 2024, through July 1, 2062, the Assigned Special Tax and the Backup Special Tax for Developed Property shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.
Exhibit "A" ATTACHMENT 2
City of Manteca
Community Facilities District No. 2023-1 (Villa Ticino West Facilities), Improvement Area No. 1 Page 7 d. Multiple Land Use Classes
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Land Use Class. The Special Tax levied on an Assessor’s Parcel shall be the sum of the Special Tax for all Land Use Classes located on that Assessor’s Parcel.
2. Final Map Property
The Maximum Special Tax for each Assessor’s Parcel of Final Map Property shall be the greater of (i) the amount derived by application of the Assigned Special Tax or (ii) the amount derived by application of the Backup Special Tax.
a. Assigned Special Tax
The Assigned Special Tax for each Assessor’s Parcel of Final Map Property shall be $1,842 per Residential Lot in Fiscal Year 2023/24.
b. Backup Special Tax
The Fiscal Year 2023-2024 aggregate Backup Special Tax attributable to property within a Final Subdivision Map will equal $12,309 per Acre multiplied by the Acreage of all Taxable Property located within such Final Subdivision Map, excluding Acreage associated with current or expected Taxable Public Property and Taxable Property Owner Association Property.
The Backup Special Tax for each Assessor’s Parcel of Residential Property in a Final Subdivision Map shall be computed by dividing the aggregate Backup Special Tax attributable to all Assessor’s Parcels of Taxable Property for which building permits for residential construction have or may be issued, as determined in the preceding paragraph, by the number of such Assessor’s Parcels (i.e., the number of Residential Lots).
Notwithstanding the foregoing, if all or any portion of a Final Subdivision Map is subsequently changed or modified, then the Backup Special Tax for each Assessor’s Parcel of Residential Property in such Final Subdivision Map, or the portion thereof that is changed or modified, shall be a rate per Acre calculated as follows:
1. Determine the total Backup Special Taxes anticipated to apply to the changed or modified portion of the Final Subdivision Map prior to the change or modification.
2. Divide the amount determined pursuant to paragraph 1 above by the total Acreage of Residential Property excluding Taxable Public Property and Taxable Property Owner Association Property which is ultimately expected to exist in such changed or modified Final Subdivision Map area, as reasonably determined by the CFD Administrator.
The result is the Backup Special Tax per Acre which shall be applicable to all Assessor's Parcels of Residential Property in such changed or modified Final Subdivision Map.
Exhibit "A" ATTACHMENT 2
City of Manteca
Community Facilities District No. 2023-1 (Villa Ticino West Facilities), Improvement Area No. 1 Page 8 c. Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2024, through July 1, 2062, the Maximum Special Tax for Final Map Property shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.
3. Undeveloped Property, Taxable Property Owner Association Property, and Taxable Public Property a. Maximum Special Tax
The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property, Taxable Property Owner Association Property, and Taxable Public Property shall be $12,309 per Acre in Fiscal Year 2023/24.
b. Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2024, through July 1, 2062, the Maximum Special Tax for Final Map Property, Undeveloped Property, Taxable Property Owner Association Property, and Taxable Public Property shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAXES
Commencing with Fiscal Year 2023/24 and for each following Fiscal Year, the CFD Administrator shall determine the Annual Special Tax Requirement and shall levy the Special Tax until the amount of the Special Tax levied equals the Annual Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows:
First: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property at 100% of the applicable Assigned Special Tax to satisfy the Annual Special Tax Requirement.
Second: If additional monies are needed to satisfy the Annual Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Final Map Property at 100% of the Maximum Special Tax for Final Map Property to satisfy the Annual Special Tax Requirement.
Third: If additional monies are needed to satisfy the Annual Special Tax Requirement after the second step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property at a rate up to 100% of the Maximum Special Tax for Undeveloped Property to satisfy the Annual Special Tax Requirement.
Fourth: If additional monies are needed to satisfy the Annual Special Tax Requirement after the first three steps have been completed, then the levy of the Special Tax on each Assessor’s Parcel of Developed Property whose Maximum Special Tax is determined through the application of the Backup Special Tax shall be increased in equal percentages from the applicable Assigned Special Tax up to 100% of the Maximum Special Tax for each such Assessor’s Parcel to satisfy the Annual Special Tax Requirement.
Fifth: If additional monies are needed to satisfy the Annual Special Tax Requirement after the first four steps have been completed, the Special Tax shall be levied on each Assessor’s Parcel of Taxable Property Owner Association Property at a rate up to 100% of the Maximum Special Tax for Taxable Property Owner Exhibit "A" ATTACHMENT 2
City of Manteca
Community Facilities District No. 2023-1 (Villa Ticino West Facilities), Improvement Area No. 1 Page 9 Association Property to satisfy the Annual Special Tax Requirement.
Sixth: If additional monies are needed to satisfy the Annual Special Tax Requirement after the first five steps have been completed, then the Special Tax shall be levied Proportionately on all Taxable Public Property at a rate up to 100% of the Maximum Special Tax for Taxable Public Property to satisfy the Annual Special Tax Requirement.
E. EXEMPTIONS
1. No Special Tax shall be levied on up to 16.6 Acres of Property Owner Association Property and/or Public Property. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which property becomes Property Owner Association Property, or Public Property. Should additional property annex to Improvement Area No. 1, the number of Acres of Property Owner Association Property and/or Public Property exempt from the Special Tax shall be identified for each such annexation.
2. Property Owner Association Property, that is not exempt from the Special Tax under this section, or pursuant to the Act, shall be classified as Taxable Property Owner Association Property. Taxable Property Owner Association Property shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the fifth step in Section D above, at up to 100% of the applicable Maximum Special Tax for Taxable Property Owner Association Property.
3. Public Property, that is not exempt from the Special Tax under this section, or pursuant to the Act, shall be classified as Taxable Public Property. Taxable Public Property shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the sixth step in Section D above, at up to 100% of the applicable Maximum Special Tax for Taxable Public Property.
4. No Special Tax shall be levied on any Assessor’s Parcel in any Fiscal Year in which such Assessor’s Parcel is classified as Welfare Exempt Property.
F. APPEAL OF SPECIAL TAX LEVY
Any property owner may file a written appeal of the Special Tax with the CFD Administrator claiming that the amount or application of the Special Tax is not correct with respect to one or more specific Assessor’s Parcels. The appeal must be filed not later than one calendar year after having paid the Special Tax that is disputed, and the appellant must be current in all payments of the Special Taxes theretofore levied on the Assessor’s Parcel(s). In addition, during the term of the appeal process, all Special Tax levied must be paid for the subject Assessor’s Parcel(s) prior to delinquency.
The appeal must specify the reasons why the appellant claims the Special Tax is in error. 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 property owner disagrees with the CFD Administrator’s decision relative to the appeal, the owner may then file a written appeal with the City Council whose subsequent decision shall be final and binding on all interested parties. If the decision of the CFD Administrator or subsequent decision by the City requires the Special Tax to be modified or changed in favor of the property owner, then an adjustment shall be made to credit future Special Taxes.
Exhibit "A" ATTACHMENT 2
City of Manteca
Community Facilities District No. 2023-1 (Villa Ticino West Facilities), Improvement Area No. 1 Page 10 This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to filing any legal action by such owner.
G. INTERPRETATION OF RATE AND METHOD OF APPORTIONMENT
The City may, by resolution or ordinance, interpret, clarify and/or revise this Rate and Method of Apportionment to correct any inconsistency, vagueness, or ambiguity as it relates to the Special Taxes, method of apportionment, classification of Assessor’s Parcels, or any definition used herein, as long as once Improvement Area No. 1 Bonds have been issued such correction does not materially adversely affect the levy and collection of Special Taxes on any Assessor’s Parcel needed to repay the Improvement Area No. 1 Bonds. In addition, the interpretation and application of any section of this document shall be at the CFD Administrator’s discretion.
H. MANNER OF COLLECTION
The Special Taxes shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, that the CFD Administrator may directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner if needed to meet the financial obligations of Improvement Area No. 1. The City may covenant to foreclose and may actually foreclose or cause an action for foreclosure to be prosecuted in respect of Assessor's Parcels of Taxable Property that are delinquent in the payment of the Special Tax.
I. PREPAYMENT OF SPECIAL TAX
The following definitions apply to this Section I:
“Authorized Facilities” means the public facilities authorized to be financed, in whole or in part, by Improvement Area No. 1.
“Buildout” means the state of maximum development of Improvement Area No. 1, and any property annexed thereto, based on plans and anticipated development. "CFD Public Facilities Cost" means $18,000,000 million for Improvement Area No. 1, expressed in 2022 dollars, which shall increase by the annual percentage change in 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 Administrator as sufficient to provide the public facilities to be provided by Improvement Area No. 1 under the authorized bonding program for Improvement Area No. 1, or (ii) shall be determined by the City Council concurrently with a covenant that it will not issue any more Bonds to be supported by Special Taxes levied under this Rate and Method of Apportionment as described in Section D. "Construction Inflation Index" means the annual percentage change in the Engineering News-Record Building Cost Index for the City of San Francisco, measured as of the calendar year which ends in the previous Fiscal Year, but not less than zero percent. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the City that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of San Francisco. "Future Facilities Costs" means, as of the date of prepayment, the CFD Public Facilities Costs minus the portion of the CFD Public Facilities Costs previously funded from (a) proceeds of all Previously Issued Exhibit "A" ATTACHMENT 2
City of Manteca
Community Facilities District No. 2023-1 (Villa Ticino West Facilities), Improvement Area No. 1 Page 11 Improvement Area No. 1 Bonds, which were, at the time of issuance, available to the City for Authorized Facilities, (b) interest earnings on the Improvement Fund actually earned prior to the date of prepayment, and (c) proceeds of the Special Tax dedicated to Pay-As-You-Go Expenditures. In no case, shall the Future Facilities Costs be less than zero.
"Previously Issued Improvement Area No. 1 Bonds" means all Outstanding Improvement Area No. 1 Bonds that have been issued by Improvement Area No. 1 prior to the date of prepayment.
1. Prepayment in Full
The Special Tax obligation of an Assessor's Parcel of Developed Property, Taxable Public Property, Final Map Property, or Undeveloped Property for which a Building Permit has been issued, may be prepaid and permanently satisfied as described herein; provided that there are no delinquent installments of the Special Tax 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 CFD Administrator with written notice of intent to prepay. Within 45 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount forsuch Assessor's Parcel. Prepayment must be made not less than 75 days prior to the next occurring date that notice of redemption of Outstanding Improvement Area No. 1 Bonds, if any. Proceeds of such prepayment may be given to the Trustee pursuant to the Indenture. If a prepayment is made prior to the issuance of Improvement Area No. 1 Bonds, the Redemption Premium, Interest Amount, Reserve Fund Credit and Capitalized Interest Credit as calculated below, shall be zero.
The CFD Administrator may charge the property owner requesting a prepayment calculation a fee for providing this service.
The Special Tax Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below):
Bond Redemption Amount
Plus Future Facilities Amount
plus Redemption Premium
plus Interest Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
Total: equals Special Tax Prepayment Amount
As of the proposed date of prepayment, the Special Tax Prepayment Amount (defined below) shall be calculated by the CFD Administrator as follows:
Step Number:
1. Confirm that no Special Tax delinquency apply to such Assessor’s Parcel, and if delinquencies are applicable compute all amounts due, including interest and penalties.
Exhibit "A" ATTACHMENT 2
City of Manteca
Community Facilities District No. 2023-1 (Villa Ticino West Facilities), Improvement Area No. 1 Page 12
2. For Assessor’s Parcels of Developed Property and Taxable Public Property compute the Assigned Special Tax and Backup Special Tax. For Assessor’s Parcels of Final Map Property, and Undeveloped Property to be prepaid, compute the Assigned Special Tax and Backup Special Tax for that Assessor’s Parcel as though it was already designated as Developed Property, based upon the building permits issued for that Assessor’s Parcel.
3. a. Divide the Assigned Special Tax computed pursuant to Step 2 by the total estimated Assigned Special Tax for Improvement Area No. 1 based on the Developed Property Special Tax which could be charged in the current Fiscal Year on all expected development through Buildout of Improvement Area No. 1
b. Divide the Backup Special Tax computed pursuant to Step 2 by the total estimated Backup Special Tax for Improvement Area No. 1 based on the Developed Property Special Tax which could be charged in the current Fiscal Year on all expected development through Buildout of Improvement Area No. 1
c. Determine which quotient computed pursuant to Step 3.a or 3.b is larger (the “Maximum Special Tax Percentage”).
4. Multiply the Maximum Special Tax Percentage by the Outstanding Improvement Area No. 1 Bonds to compute the principal amount of Outstanding Improvement Area No. 1 Bonds to be redeemed (the “Bond Redemption Amount”).
5. Compute the Future Facilities Costs.
6. Multiply the Maximum Special Tax Percentage by the total Future Facilities Costs to compute the Future Facilities amount to be prepaid (the “Future Facilities Amount”).
7. Multiply the Bond Redemption Amount computed pursuant to Step 4 by the applicable redemption premium, if any, on the Outstanding Improvement Area No. 1 Bonds to be redeemed (the "Redemption Premium") determined by reference to the Indenture.
8. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Improvement Area No. 1 Bonds (the “Interest Amount”).
9. Verify the administrative fees and expenses, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming the Outstanding Improvement Area No. 1 Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the “Administrative Fees and Expenses”).
10. If reserve funds for the Outstanding Improvement Area No. 1 Bonds held under the Indenture, if any, are at or above 100% of the then reserve requirement (as required by the Indenture) on the prepayment date, a reserve fund credit shall be calculated as a reduction in the applicable reserve requirement for the Outstanding Improvement Area No. 1 Bondsto be redeemed pursuant to the prepayment (the "Reserve Fund Credit"). No Reserve Fund Credit shall be granted if reserve funds are below 100% of the applicable reserve requirement on the prepayment date or if the Reserve Fund is satisfied by a credit instrument rather than cash funded.
Exhibit "A" ATTACHMENT 2
City of Manteca
Community Facilities District No. 2023-1 (Villa Ticino West Facilities), Improvement Area No. 1 Page 13
11. If any capitalized interest for the Outstanding Improvement Area No. 1 Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the Maximum Special Tax Percentage by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the "Capitalized Interest Credit").
12. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to Steps 4, 6, 7, 8 and 9 less the amount computed pursuant to Steps 10 and 11 (the " Prepayment Amount").
13. From the Prepayment Amount, the amounts computed pursuant to Step 6 shall be used by the City to pay for Future Facilities Costs. The amounts computed pursuant to Steps 4, 6, 7 and 8 shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Improvement Area No. 1 Bonds or make Debt Service payments. The amount computed pursuant to Step 9 shall be retained by the City for the payment of Administrative Fees and Expenses.
The Special Tax Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Outstanding Improvement Area No. 1 Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of Outstanding Improvement Area No. 1 Bonds or to make Debt Service payments.
Current year Special Taxes that are not yet paid will remain outstanding and will be collected in the manner billed. With respect to any Assessor's Parcel that is prepaid, the CFD Administrator shall cause a suitable notice to be recorded in compliance with the Act to indicate the prepayment of the Special Tax and the obligation of such Assessor's Parcel satisfied.
Notwithstanding the foregoing, no prepayment will be allowed unless the Maximum Special Tax that may be levied on Taxable Property both prior to and after the proposed prepayment is at least 1.1 times the maximum annual Debt Service on all Outstanding Improvement Area No. 1 Bonds plus annual Administrative Expenses, as reasonably estimated by the CFD Administrator.
2. Prepayment in Part
The Special Tax may be partially prepaid, provided that a partial prepayment may be made only after all authorized Improvement Area No. 1 Bonds have been issued and only for Assessor’s Parcels of Developed Property, Final Map Property, Taxable Public Property and Undeveloped Property for which a Building Permit has been issued and only if there are no delinquent Annual Special Taxes with respect to such Assessor's Parcel at the time of partial prepayment. The amount of the prepayment shall be calculated as in Section I.1; except that a partial prepayment shall be calculated by the CFD Administrator according to the following formula:
PP = PE x F.
These terms have the following meaning:
PP = the partial prepayment
PE = the Special Tax Prepayment Amount calculated according to Section I.1 Exhibit "A" ATTACHMENT 2
City of Manteca
Community Facilities District No. 2023-1 (Villa Ticino West Facilities), Improvement Area No. 1 Page 14 F = the Maximum Special Tax Percentage
The Special Tax partial prepayment amount must be sufficient to redeem at least a $5,000 increment of Bonds.
The owner of any Assessor’s Parcel who desires such partial prepayment shall notify the CFD Administrator of such owner’s intent to partially prepay the Special Tax and the percentage by which the Special Tax shall be prepaid. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax for an Assessor’s Parcel within 45 days of the request and may charge a fee for providing this service. With respect to any Assessor’s Parcel that is partially prepaid, the CFD Administrator shall (i) distribute the prepayment funds remitted according to Section I.1, and (ii) indicate in the records of Improvement Area No. 1 that there has been a partial prepayment of the Special Tax and that a portion of the Special Tax with respect to such Assessor’s Parcel, equal to the outstanding percentage (1.00 - F) of the remaining Maximum Special Tax, shall continue to be levied on such Assessor’s Parcel pursuant to Section D.
J. SPECIAL TAX REDUCTION
The following definitions apply to this Section J:
"Appraisal” means an appraisal or a letter updating a previous appraisal prepared by the MAI Appraiser which (a) sets forth the Plan Types constructed or expected to be constructed within Improvement Area No. 1, (b) sets forth the estimated number of constructed and expected residential dwelling units for each Plan Type, (c) sets forth such MAI Appraiser’s estimate of the price point for each Plan Type and (d) uses a date for establishing such price point that is no earlier than 60 days and no later than 180 days prior to the date the Appraisal is delivered to the CFD Administrator pursuant to Section C herein. "Issuance Date” means the date a bond purchase contract related to the sale of the Improvement Area No. 1 Bonds is entered into between the purchaser of the Improvement Area No. 1 Bonds and CFD No. 2023-1.
"MAI Appraiser” means an appraiser licensed or otherwise qualified to do business in the State or firm of such appraisers selected by the City that (a) has substantial experience in performing appraisals for residential units within community facilities districts or otherwise estimating or confirming pricing for residential units in community facilities districts, (b) has recognized expertise in analyzing economic and real estate data that relates to the appraisal of residential units in community facilities districts, (c) is in fact independent and not under the control of CFD No. 2023-1 or the City, (d) does not have any substantial interest, direct or indirect, with or in (i) CFD No. 2023-1, (ii) the City, (iii) any owner of real property in CFD No. 2023-1, or (iv) any real property in CFD No. 2023-1, (e) is not connected with CFD No. 2023-1 or the City as an officer or employee thereof, but who may be regularly retained to make reports to CFD No. 2023-1 or the City, and (f) holds a American Institute of Real Estate Appraisers’ MAI designation.
“Plan Type” means a discrete residential plan type (generally consisting of residential dwelling units that share a common product type (e.g., detached, condominium) and that have nearly identical amounts of Exhibit "A" ATTACHMENT 2
City of Manteca
Community Facilities District No. 2023-1 (Villa Ticino West Facilities), Improvement Area No. 1 Page 15 living area) that is constructed or expected to be constructed within Improvement Area No. 1 as identified in the Appraisal or a Price Point Study.
“Price Point Consultant” means any consultant or firm of such consultants selected by the City that (a) has substantial experience in performing price point studies for residential units within community facilities districts or otherwise estimating or confirming pricing for residential units in community facilities districts, (b) has recognized expertise in analyzing economic and real estate data that relates to the pricing of residential units in community facilities districts, (c) is in fact independent and not under the control of CFD No. 2023-1 or the City, (d) does not have any substantial interest, direct or indirect, with or in (i) CFD No. 2023-1, (ii) the City, (iii) any owner of real property in CFD No. 2023-1, or (iv) any real property in CFD No. 2023-1, and (e) is not connected with CFD No. 2023-1 or the City as an officer or employee thereof, but who may be regularly retained to make reports to CFD No. 2023-1 or the City. “Price Point Study” means a price point study or a letter updating a previous price point study prepared by the Price Point Consultant which (a) sets forth the Plan Types constructed or expected to be constructed within Improvement Area No. 1, (b) sets forth the estimated number of constructed and expected residential dwelling units for each Plan Type, (c) sets forth such Price Point Consultant’s estimate of the price point for each Plan Type and (d) uses a date for establishing such price points that is no earlier than 60 days and no later than 180 days prior to the date the Price Point Study is delivered to the CFD Administrator pursuant to Section C herein.
"Total Effective Tax Rate” means, for a Plan Type, the quotient of (a) the Total Tax Burden for such Plan Type divided by (b) the Price Point for such Plan Type, converted to a percentage. “Total Tax Burden” means, for any Unit of Single Family Residential Property, the sum of the Assigned Special Tax, together with ad valorem property taxes, special assessments, special taxes for any overlapping community facilities district, and any other taxes, fees and charges, and excluding services charges such as sewer and trash, which are collected by the County via property tax bills and which are payable from and secured by the property, assuming such Unit of Single Family Residential Property has been completed, sold and subject to such levies and impositions.
Special Tax Reduction Calculation
Prior to the issuance of the first series of Improvement Area No. 1 Bonds, the following steps shall be taken for each Land Use Class of Residential Property in Improvement Area No. 1:
At least 60 days prior to the expected Issuance Date of the first series of Improvement Area No. 1 Bonds, the City, on behalf of CFD No. 2023-1, shall determine, based on an Appraisal or a Price Point Study, whether or not the Total Effective Tax Rate for all Plan Types in a Land Use Class as calculated by the CFD Administrator separately for each Land Use Class of Residential Property, is less than or equal to 1.80%.
1. CFD No. 2023-1 shall cause an Appraisal or Price Point Study to be delivered to the CFD Administrator.
a. If the Total Effective Tax Rate for all Plan Types in a Lands Use Class is less than or equal to
1.80%, then there shall be no change in the Assigned Special Tax for such Land Use Class.
Exhibit "A" ATTACHMENT 2
City of Manteca
Community Facilities District No. 2023-1 (Villa Ticino West Facilities), Improvement Area No. 1 Page 16 b. If the Total Effective Tax Rate for any Plan Type in a Land Use Class is greater than 1.80%, the CFD Administrator shall calculate a revised Assigned Special Tax for such Land Use Class which revised Assigned Special Tax shall be the highest amount (rounded to the nearest whole dollar) that will not cause the Total Effective Tax Rate for any Plan Type in such Land Use Class to exceed 1.80%.
2. If the Assigned Special Tax for any Land Use Class is revised pursuant to step 1.b. above, the CFD Administrator shall calculate a revised Backup Special Tax for all property. The revised Backup Special Tax per Acre shall be an amount (rounded to the nearest whole dollar) equal to the Backup Special Tax per Acre as set forth in Section C above, reduced by a percentage equal to the weighted average percentage reduction in the Assigned Special Taxes for all Land Use Classes of Residential Property resulting from the calculations in steps 1.a. through 1.b. above. The weighted average percentage will be calculated by taking the sum of the products of the number of units constructed or expected to be constructed in each Land Use Class multiplied by the percentage change in the Assigned Special Tax (pursuant to step 1.b. above) for each Land Use Class (or 0 for Land Use Classes that are not changing). This amount is then divided by the total number of units constructed or expected to be constructed and converted to a percentage.
3. If the Assigned Special Tax for any Land Use Class is revised pursuant to step 1.b. above, the CFD Administrator shall prepare and execute a Certificate of Reduction in Special Taxes substantially in the form of Attachment A hereto and shall deliver such Certificate of Reduction in Special Taxes to Improvement Area No. 1. The Certificate of Reduction in Special Taxes shall be completed for all Land Use Classes and shall set forth, as applicable, either (i) the reduced Assigned Special Tax for a Land Use Class as calculated pursuant to step 1.b. or (ii) the Assigned Special Tax as identified in Table 1 in Section C for a Land Use Class that was not revised as determined pursuant to step
1.a.; as well as either (i) the revised Backup Special Tax as calculated pursuant to step 4, or (ii) the Backup Special Tax as identified in in Section C.1.(b) that was not revised as determined pursuant to step 4.
4. If the Issuance Date of the first series of Improvement Area No. 1 Bonds is within 120 days of the date of receipt of the Appraisal or a Price Point Study by the CFD Administrator, CFD No. 2023-1 shall execute the acknowledgement on such Certificate of Reduction in Special Taxes, dated as of the closing date of such Bonds, and upon the closing of such first series of Bonds, the Assigned Special Tax for each Land Use Class and the Backup Special Tax shall be, for all purposes, as set forth in such Certificate of Reduction in Special Taxes. If the Issuance Date of the first series of Bonds is not within 120 days of the date of receipt of the Appraisal or a Price Point Study by the CFD Administrator, such Certificate of Reduction in Special Taxes shall not be acknowledged by CFD No. 2023-1 and shall, as of such date, be void and of no further force and effect. In such case, if subsequently a first series of Improvement Area No. 1 Bonds is expected to be issued, at least 30 days prior to the expected Issuance Date of such first series of Improvement Area No. 1 Bonds, the CFD Administrator shall cause a new Appraisal or a Price Point Study to be delivered to the CFD Administrator and, following such delivery, steps 2 through 5 of this section shall be performed based on such new Appraisal or a Price Point Study.
Exhibit "A" ATTACHMENT 2
City of Manteca
Community Facilities District No. 2023-1 (Villa Ticino West Facilities), Improvement Area No. 1 Page 17
5. As soon as practicable after the execution by CFD No. 2023-1 of the acknowledgement on the Certificate of Reduction in Special Taxes, CFD No. 2023-1 shall cause to be recorded in the records of the County Recorder an Amended Notice of Special Tax Lien for Improvement Area No. 1 reflecting the Assigned Special Taxes and the Backup Special Tax set forth in such Certificate of Reduction in Special Taxes.
6. If the Assigned Special Tax is not required to be changed for any Land Use Class based on the calculations performed under step 1 above, there shall be no reduction in the Maximum Special Tax, and no Certificate of Reduction in Special Taxes shall be required. However, the CFD Administrator shall prepare and deliver to CFD No. 2023-1 a Certificate of No Reduction in Special Taxes substantially in the form of Attachment B hereto dated as of the closing date of the first series of Bonds that states that the calculations required pursuant to this Section J have been made and that no changes to the Maximum Special Tax are necessary.
CFD No. 2023-1 and the CFD Administrator shall take no further actions under this Section J upon the earlier to occur of the following: (i) the execution of the acknowledgement by CFD No. 2023-1 on a Certificate of Reduction in Special Taxes pursuant to step 4; or (ii) the delivery by the CFD Administrator of a Certificate of No Reduction in Special Taxes pursuant to step 6.
K. TERM
The Special Tax shall be levied and collected as needed to fund the Annual Special Tax Requirement for up to 40 years from the initial levy of the Special Tax. In any event no Special Tax shall be levied for CFD.
No. 2023-1 after the 2062/63 Fiscal Year.
Exhibit "A" ATTACHMENT 2
City of Manteca
Community Facilities District No. 2023-1 (Villa Ticino West Facilities), Improvement Area No. 1 Page 18
ATTACHMENT A
CERTIFICATE OF REDUCTION IN SPECIAL TAXES
COMMUNITY FACILITIES DISTRICT NO. 2023-1
(VILLA TICINO WEST FACILITIES)
IMPROVEMENT AREA NO. 1
1. Pursuant to Section J of the Rate and Method of Apportionment of Special Taxes attached to the Notice of Special Tax Lien recorded in the Official Records of the County of San Joaquin as Document No. _________ on the ____ day of _________, 20__, the CFD Administrator hereby reduces the Maximum Special Tax for Developed Property for [certain or all] Land Use Classes within Improvement Area No. 1.
2. The calculations made pursuant to Section J were based upon an Appraisal or a Price Point Study that was received by the CFD Administrator on __________________.
3. Table A-1 below shows the Assigned Special Tax for each Land Use Class after such reduction:
Table A-1
Reduced Assigned Special Taxes for Developed Property
Fiscal Year _______
Land Use
Class Description Building Square Feet
Assigned Special
Tax
1 Residential Property > 2,700 BSF $_____ per Unit
2 Residential Property 2,501 – 2,700 BSF $_____ per Unit 3 Residential Property 2,301 – 2,500 BSF $_____ per Unit 4 Residential Property 2,101 – 2,300 BSF $_____ per Unit 5 Residential Property 1,901 – 2,100 BSF $_____ per Unit 6 Residential Property 1,701 – 1,900 BSF $_____ per Unit 7 Residential Property < 1,701 BSF $_____ per Unit
8 Accessory Dwelling Unit N/A $0.00 per Unit
9 Non-Residential Property N/A $_____ per Acre
4. The Backup Special Tax for Developed Property will equal Maximum Special Tax as determined in Section 5, below, when such property became Final Map Property.
5. The Maximum Special Tax for each Assessor’s Parcel of Final Map Property shall be the greater of (i) the amount derived by application of the Assigned Special Tax or (ii) the amount derived by application of the Backup Special Tax.
Exhibit "A" ATTACHMENT 2
City of Manteca
Community Facilities District No. 2023-1 (Villa Ticino West Facilities), Improvement Area No. 1 Page 19 a. Assigned Special Tax
The Assigned Special Tax for each Assessor’s Parcel of Final Map Property shall be $_____ per Residential Lot.
b. Backup Special Tax
The Backup Special Tax for each Assessor’s Parcel of Final Map Property shall be $_____ per Acre.
6. The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property, Taxable Property Owner Association Property, and Taxable Public Property shall be $_____ per Acre.
7. Upon execution of the certificate by the City, the CFD Administrator shall cause an amended notice of special tax lien for Improvement Area No. 1 to be recorded reflecting the modifications set forth herein.
8. By execution hereof, the undersigned acknowledges, on behalf of the City and CFD No. 2023-1, receipt of this certificate and modification of the Rate and Method of Apportionment of Special Taxes as set forth in this certificate.
Submitted
CFD ADMINISTRATOR
By: Date: ___________________
Community Facilities District No. 2023-1 of the City of Manteca By: Date as of : ___________________
[closing date of Bonds]
Exhibit "A" ATTACHMENT 2
City of Manteca
Community Facilities District No. 2023-1 (Villa Ticino West Facilities), Improvement Area No. 1 Page 20
ATTACHMENT B
CERTIFICATE OF NO REDUCTION IN SPECIAL TAXES
COMMUNITY FACILITIES DISTRICT NO. 2023-1
IMPOVEMENT AREA NO 1
1. All calculations required pursuant to Section J of the Rate and Method of Apportionment have been made based upon an Appraisal or a Price Point Study that was received by the CFD Administrator on __________________.
2. Total Effective Tax Rate for all Plan Types in all Land Use Classes is less than or equal to 1.80%.
3. The Maximum Special Tax for Developed Property within Improvement Area No. 1, including the Assigned Special Taxes set forth in Sections C.1.(a) and the Backup Special Tax set forth in Section C.1.(b) of the Rate and Method of Apportionment, shall remain in effect and not be reduced.
Submitted
CFD ADMINISTRATOR
By: Date as of: _______
[closing date of Bonds]
Exhibit "A" ATTACHMENT 2