Table of Contents
Sections P age _____________________________________________ 1 Introduction ________________________________________________ 1 2 Description of Facilities ______________________________________________ 2 3 Cost Estimate ________________________________________________ 3 4 Proposed Development _____________________________________________ 4 5 Rate and Method of Apportionment ____________________________________ 5 6 Certifications ________________________________________________ 8 Tables Page
3-1 Cost Estimate ________________________________________________ 3 5-1 Assigned Special Tax for Developed Property ____________________________ 5
Appendices P age _____________________________________________ A Rate and Method of Apportionment _____________________________________ B Proposed Boundary Map _________________________________________ C Resolution of Intention
1 Int roduction Page |1
City of Menifee
CFD No. 2022-2 (McLaughlin Village)
Public Hearing Report
Background
to form Community Facilities District No. 2022-2 (McLaughlin Village) of the City of
CFD No. 2022-2 is currently comprised of approximately 15 gross acres within Tract Map 36937 including 126 proposed single family residential properties. The property is located at the southeast intersection of McLaughlin Road and Barnett Road.
For a map showing the boundaries of CFD No. 2022-2 please see Appendix B.
Purpose of Public Hearing Report
the following:
1. A brief description of CFD No. 2022-2;
2. A brief description of the Facilities required at the time of formation to meet the needs of CFD No. 2022-2.
3. A brief description of the Boundaries of CFD No. 2022-2; and
4. An estimate of the cost of financing the bonds used to pay for the Facilities, including all costs associated with formation of the District, issuance of bonds, determination of the amount of any special taxes, collection of any special taxes, or costs otherwise incurred in order to carry out the authorized purposes of the City with respect to the District, and any other incidental expenses to be paid through the proposed financing.
For particulars, reference is made to the Resolution of Intention as previously approved and adopted and is included in Appendix C.
2 Des cription of F acilities Page |2
City of Menifee
CFD No. 2022-2 (McLaughlin Village)
Public Hearing Report
NOW, THEREFORE, the undersigned, authorized representative of Spicer Consulting Group, LLC, the appointed responsible officer, or person directed to prepare this Report, does hereby submit the following data:
Description of the Facilities
A Community Facilities District may pay for facilities which may include 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, provide for the purchase, construction, expansion, or rehabilitation for any real or other tangible property 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 and/or rehabilitation occurring within the District.
The types of facilities that are proposed by CFD No. 2022-2 and financed with the proceeds of special taxes and bonds issued by CFD No. 2022-2 consist of the construction, purchase, modification, expansion, rehabilitation and/or improvement of (i) drainage, library, park, roadway, traffic, administration and general government facilities, animal shelter facilities, fire fee
programs with respect to such facilities and authorized to be financed under the Mello-Roos Community Facilities Act of and (ii) interim and permanent school facilities of Romoland School District, including classrooms, multi-purpose facilities, administration and auxiliary space at school facilities, athletic fields, playgrounds and recreational facilities and improvements thereto, landscaping, access roadways, drainage, sidewalks and gutters and utility lines, furniture, equipment and technology, including technology upgrades and mobile devices and infrastructure therefore, with a useful life of at least five (5) years at such school facilittogether, ), and all appurtenances and appurtenant work in connection with the foregoing Facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such Facilities.
Incidental Expenses
The Incidental Expenses to be paid from bond proceeds and/or special taxes include:
a) The cost of engineering, planning and designing the Facilities; and b) All costs, including costs of the property owner petitioning to form the District, associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District; and c) Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities.
Capitalized terms used and not defined herein shall have the meaning set forth in the Rate and Method of Apportionment of Special Taxes for the District.
All costs associated with the creation of CFD No. 2022-2, the issuance of bonds, the determination of the amount of special taxes to be levied, costs incurred in order to carry out the authorized purposes of CFD No. 2022-2, including legal fees, fees of consultants, engineering, planning, designing and the annual costs to administer CFD No. 2022-2 and any obligations.
The description of the eligible public facilities, services and incidental expenses above are preliminary and general in nature.
The final plans and specifications approved by the applicable public agency may show substitutes or modifications in order to accomplish the work or serve the new development and any such substitution or modification shall not constitute a change or modification in the proceedings relating to CFD No. 2022-2.
3 Cost Estimate Page |3
City of Menifee
CFD No. 2022-2 (McLaughlin Village)
Public Hearing Report
Below is the estimated cost of facilities to be provided to the District. a) The cost estimate of facilities, including incidental expenses, to be financed through the issuance of CFD No. 2022- 2 Bonds is estimated to be $3,822,686 based upon current dollars (Fiscal Year 2022-23). b) For further particulars please reference Table 3-1 below and incorporated herein by reference. c) Pursuant to Section 53340 of the Act, the proceeds of any special tax levied and collected by CFD No. 2022-2 may be used only to pay for the cost of providing public facilities, services, and incidental expenses. As defined by the Act, incidental expenses include, but are not limited to, the annual costs associated with determination of the amount of special taxes, collection of special taxes, payment of special taxes, or costs otherwise incurred in order to carry out the authorized purposes of the District. The incidental expenses associated with the annual administration of CFD No. 2022-2 are estimated to be $30,000 in the initial Fiscal Year. However, it is anticipated that the incidental expenses will vary due to inflation and other factors that may not be foreseen today, and the actual incidental expenses may exceed these amounts accordingly.
Table 3-1
Cost Estimate
City Fees Total Bond Allocation(1)
Law Enforcement $29,106 $29,106
Fire Facilities $77,364 $77,364
Circulation $588,420 $588,420
General Government $128,646 $128,646
Public Use Facilities $19,404 $19,404
Quimby $1,094,814 $1,094,814
City Facilities $404,208 $404,208
Total City Fees $2,425,248 $2,425,248
Romoland School District Total Bond Allocation(1)
School Fees $1,462,980 $1,397,438
Total Romoland School District $1,462,980 $1,397,438
Total Eligible Fees/Improvements $3,888,228 $3,822,686
Incidental Financing Costs $862,314
Total Funded by Bond Proceeds $4,685,000
Total Fees/Improvements to be Funded by Developer $65,542 (1) Amounts are allocated based upon estimated bond sizing and may change based upon market conditions at the time of bond issuance. Allocation of bond proceeds between facility types to be determined at the time of bond issuance.
4 Propos ed Development Page |4
City of Menifee
CFD No. 2022-2 (McLaughlin Village)
Public Hearing Report
The CFD No. 2022-2 includes approximately 15 gross acres located at the southeast intersection of McLaughlin Road and Barnett Road in the City. The property within CFD No. 2022-2 is expected to be developed with 126 single family residential properties. As of Fiscal Year 2022-23 the proposed CFD No. 2022-2 includes the following Assessor's Parcel Number:
Number
331-090-008
A map showing the boundaries of CFD No. 2022-2 is included in Appendix B.
5 Rate and Method of Apport ionme nt Page |5
City of Menifee
CFD No. 2022-2 (McLaughlin Village)
Public Hearing Report
The Rate and Method of Apportionment allows each property owner within CFD No. 2022-2 to estimate the annual Special Tax amount that would be required for payment. The Rate and Method of Apportionment of the Special Tax established pursuant to these proceedings, is attached hereto as Appendix Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the CFD Administrator may directly bill the Special Taxes, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of CFD No. 2022-2, and provided further that CFD No. 2022-2 may covenant to foreclose and may actually foreclose on parcels having delinquent Special Taxes as permitted by the Act.
All of the property located within CFD No. 2022-2, unless exempted by law or by the Rate and Method proposed for CFD No. 2022-2, shall be taxed for the purpose of providing necessary facilities to serve the District. The Boundary Map for CFD No. 2022-2 is attached hereto as Appendix B. Pursuant to Tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any the benefit received by property, the cost of making facilities or authorized services available or other reasonable basis as determined by the City, although the Special Tax may not be apportioned on an ad valorem basis pursuant to Article XIIIA of the California Constitution. A property owner within the District may choose to prepay in whole or in part the Special Tax. The available method for so doing is described in Section G of the For each year that any Bonds are outstanding the Special Tax shall be levied on all parcels subject to the Special Tax. If any delinquent Special Taxes remain uncollected prior to or after all Bonds are retired, the Special Tax may be levied to the extent necessary to reimburse CFD No. 2022-2 for uncollected Special Taxes associated with the levy of such Special Taxes, but the Special Tax shall not be levied after 2064-65 Fiscal Year.
Table 5-1
Assigned Special Tax for Developed Property
Fiscal Year 2022-23
Land Use Category
Taxable
Unit Building Square Footage
Assigned Special
Tax Per Taxable
Unit
1. Single Family Residential Property RU Less than 2,100 sq. f t $2,415.00
2. Single Family Residential Property RU 2,100 sq. ft to 2,300 sq. f t $2,461.00
3. Single Family Residential Property RU Greater than 2,300 sq. f t $2,506.00
4. Multifamily Property Acre N/A $49,979.00
5. Non-Residential Property Acre N/A $49,979.00
Escalation of Special Taxes
On each July 1, commencing on July 1, 2023 the Assigned Special Tax shall increase by two percent (2.0%), of the amount in effect in the prior Fiscal Year.
For particulars as to the Rate and Method for CFD No. 2022-2, see the attached and incorporated in Appendix A. 6 Certifications Page |6
City of Menifee
CFD No. 2022-2 (McLaughlin Village)
Public Hearing Report
Based on the information provided herein, it is my opinion that the described services herein are those that are necessary to meet increased demands placed upon the City of Menifee as a result of development occurring within the CFD No. 2022- 2 and benefits the lands within said CFD No. 2022-2. Further, it is my opinion that the special tax rates and method of apportionment, as set forth herein, are fair and equitable, uniformly applied and not discriminating or arbitrary.
Date: September 21, 2022 SPICER CONSULTING GROUP, LLC
__________________________
SHANE SPICER
SPECIAL TAX CONSULTANT FOR
CITY OF MENIFEE
RIVERSIDE COUNTY
STATE OF CALIFORNIA
City of Menifee
Community Facilities District No. 20222 (McLaughlin Village) Page 1
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 20222 (MCLAUGHLIN VILLAGE)
OF THE CITY OF MENIFEE
A Special Tax (all capitalized terms not otherwise defined herein are defined in Section A, below) shall be applicable to each Parcel of Taxable Property located within the boundaries of the City of Menifee Community Facilities District No. 20222 (McLaughlin Village) ("CFD No. 20222").
The amount of Special Tax to be levied in each Fiscal Year on anParcel shall be determined by the City Council of the City of Menifee, acting in its capacity as the legislative body of CFD No. 20222, by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, and Provisional Undeveloped Property that is not Exempt Property as set forth below. All of the real property, unless exempted by law or by the provisions hereof in Section F, 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:
or means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded County parcel map or instrument. The square footage of an Parcel is equal to the Acreage multiplied by 43,560. "Act"means the MelloRoos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses"means the following actual or reasonably estimated costs directly related to the administration of CFD No. 20222: the costs of computing the Special Taxes and preparing the Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting Special Taxes to the Trustee; the costs of the Trustee (including legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 20222 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 20222 or any designee thereof of complying with continuing disclosure requirements of the City, CFD No. 20222 and any major property owner associated 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 Special Taxes; the costs of the City, CFD No. 20222 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and theannual administration fees and third party expenses. Administration Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 20222 for any other administrative purposes of CFD No. 20222, including fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Approved Property"means all Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1stpreceding the Fiscal Year in which the Special Tax is being levied, (ii) that have an assigned Parcel Number from the County shown on an Parcel Map for the individual lot included on the Final Map, and (iii) that have not been issued a building permit on or before May 1stpreceding the Fiscal Year in which the Special Tax is being levied.
City of Menifee
Community Facilities District No. 20222 (McLaughlin Village) Page 2 Parcel"means a lot or parcel of land designated on an Parcel Map with an assigned Parcel Number.
Parcel Map"means an official map of the Assessor of the County designating parcels by Parcel Number.
Parcel Number"means that number assigned to an Parcel by the County for purposes of identification.
"Assigned Special Tax"means the Special Tax of that name described in Section D below. "Backup Special Tax"means the Special Tax of that name described in Section D below. "Bonds"means any obligation to repay a sum of money, including obligations in the form of bonds, certificates of participation, longterm leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or longterm contracts, or any refunding thereof, to which the Special Tax of CFD No. 20222 have been pledged. "Boundary Map"means a recorded map of the CFD which indicates the boundaries of the CFD. "Building Permit"means the first legal document issued by the City giving official permission for new construction. For purposes of this definition, may or may not include expired or cancelled building permits, or any subsequent building permit document(s) authorizing new construction on an Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator, provided that following such determination the Maximum Special Tax that may be levied on allParcels of Taxable Property will be at least 1.1 times annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses. "Building Square Footage"or "BSF"means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the Building Permit for such Parcel.
"Calendar Year"means the period commencing January 1 of any year and ending the following December 31.
or No. 20222" means Community Facilities District No. 20221 (McLaughlin Village) established by the City under the Act.
Administrator"means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, and providing for the levy and collection of the Special Taxes. means the City of Menifee, State of California.
"City Council"means the City Council of the City of Menifee, acting as the legislative body of CFD No. 20222.
Plan"means a condominium plan purusant to California Civil Code, Section 6624. "County"means the County of Riverside, State of California.
City of Menifee
Community Facilities District No. 20222 (McLaughlin Village) Page 3 "Developed Property"means all Parcels that: (i) are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, (ii) have an Parcel Number from the County shown on an Parcel Map for the individual lot included on the Final Map, and (iii) for which a Building Permit for new construction was issued on or before May 1stpreceding the Fiscal Year in which the Special Tax is being levied. "Exempt Property"means all Parcels designated as being exempt from Special Taxes as provided for in Section F.
"Final Map"means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a Condominium Plan pursuant to California Civil Code Section 6624 that creates individual lots for which Building Permits may be issued without further subdivision. "Fiscal Year"means the period commencing on July 1stof any year and ending the following June 30th. means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same.
Use means any of the categories listed in Table 1 of Section D. "Maximum Special Tax"means for each Parcel, the maximum Special Tax, determined in accordance with Section D below, that can be levied by CFD No. 20222 on such Parcel. means all Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing a building or buildings comprised of attached Residential Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the CFD Administrator. "NonResidential Property"means all Assessor's Parcels of Developed Property for which a Building Permit(s) was issued for a nonresidential use. The CFD Administrator shall make the determination if an Parcel is NonResidential Property.
"Partial Prepayment Amount"means the amount required to prepay a portion of the Special Tax obligation for an Parcel, as described in Section G.2.
"Prepayment Amount"means the amount required to prepay the Special Tax obligation in full for an Parcel, as described in Section G.1.
means for Taxable Property that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is the same for allParcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property, and (iii) Undeveloped Property or Provisional Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is the same for all Parcels of Undeveloped Property or Provisional Undeveloped Property, as applicable.
"Provisional Undeveloped Property"means all Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section F, but cannot be
City of Menifee
Community Facilities District No. 20222 (McLaughlin Village) Page 4 classified as Exempt Property because to do so would be reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Section F. "Residential Property"means all Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more Residential Units. or"RU"means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the CFD Administrator. means this Rate and Method of Apportionment of Special Taxes.
Family Residential means all Parcels of Residential Property other than Multifamily Property.
"Special Tax"or means any of the special taxes authorized to be levied within CFD No. 20222 pursuant to the Act to fund the Special Tax Requirement. "Special Tax Requirement "means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to replenish any reserve funds established in association with the Bonds (provided that the same amount was not previously levied), (v) an amount up to any anticipated shortfall due to Special Tax delinquencies and (vi) for the collection or accumulation of funds for the acquisition or construction of facilities authorized by CFD No. 20222 or the payment of debt service on Bonds anticipated to be issued, provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on Approved Property or Undeveloped Property as set forth in Steps Two or Three of Section E., less (vii) any amounts available to pay debt service or other periodic costs on the Bonds pursuant to the Indenture.
"Taxable Property"means all Parcels within CFD No. 20222, which are not Exempt Property. means either a Residential Unit or an Acre.
means the trustee, fiscal agent, or paying agent under the Indenture. "Undeveloped Property"means all Parcels of Taxable Property which are not Developed Property, Approved Property, or Provisional Undeveloped Property.
B. SPECIAL TAX
Commencing Fiscal Year 20222023 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property, up to the applicable Maximum Special Tax, to fund the Special Tax Requirement.
City of Menifee
Community Facilities District No. 20222 (McLaughlin Village) Page 5 C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX
Each Fiscal Year, beginning with Fiscal Year 20222023, each Parcel within CFD No. 20222 shall be classified as Taxable Property or Exempt Property. In addition, eachParcel of Taxable Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property.
Parcels of Developed Property shall further be classified as Residential Property or NonResidential Property. Each Parcel of Residential Property shall further be classified as a Single Family Residential Property or Multifamily Property. EachParcel of Single Family Residential Property shall be further assigned to a Land Use Category based on its Building Square Footage.
In the event that there are Parcel(s) for which one or more Building Permits for Residential Units have been issued and the County has not yet assigned finalParcel Number(s) to such Parcel(s) (in accordance with the Final Map or Condominium Plan), the amount of the Special Tax levy on such Parcel for each Fiscal Year shall be determined as follows: (1) the CFD Administrator shall first determine an amount of the Maximum Special Tax for suchParcel, based on the classification of such Parcel as Undeveloped Property; (2) the amount of the Special Tax for the Residential Units on such Parcel for which Building Permits have been issued shall be determined based on the Developed Property Special Tax rates and such amount shall be levied as Developed Property in accordance with Step 1 of Section E below; and (3) the amount of the Special Tax on the Taxable Property in suchParcel not subject to the Special Tax levy in clause (2) shall be equal to: (A) the percentage of the Maximum Special Tax rate levied on Undeveloped Property pursuant to Step 3 of Section E below, multiplied by the total of the amount determined in clause (1), less (B) the amount determined in clause (2).
D. MAXIMUM SPECIAL TAX
1. Developed Property
The Maximum Special Tax for each Parcel of Single Family Residential Property in any Fiscal Year shall be the greater of (i) the Assigned Special Tax for suchParcel or (ii) the Backup Special Tax.
The Maximum Special Tax for each Parcel of Multifamily Property and NonResidential Property shall be the applicable Assigned Special Tax described in Table 1 of Section D. a. Assigned Special Tax
Each Fiscal Year, each Parcel of Single Family Residential Property, Multifamily Property or NonResidential Property shall be subject to an Assigned Special Tax. The Assigned Special Tax for Fiscal Year 20222023 applicable to an Assessor's Parcel of Developed Property shall be determined pursuant to Table 1 below.
City of Menifee
Community Facilities District No. 20222 (McLaughlin Village) Page 6 TABLE 1
ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
FISCAL YEAR 20222023
Land Use Category
Taxable
Unit Building Square Footage
Assigned
Special Tax Per
Taxable Unit
1. Single Family Residential Property RU Less than 2,100 sq. ft $2,415.00
2. Single Family Residential Property RU 2,100 sq. ft to 2,300 sq. ft $2,461.00
3. Single Family Residential Property RU Greater than 2,300 sq. ft $2,506.00
4. Multifamily Property Acre N/A $49,979.00
5. NonResidential Property Acre N/A $49,979.00
On each July 1, commencing July 1, 2023, the Assigned Special Tax rate for Developed Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. b. Multiple Land Use Categories
In some instances an Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax levied on anParcel shall be the sum of the Maximum Special Tax for each Taxable Unit for all Land Use Categories located on theParcel. The CFD allocation to each type of property shall be final. c. Backup Special Tax
The Backup Special Tax for an Parcel within a Final Map classified as Single Family Residential Property or Approved Property expected to be classified as Single Family Residential Property shall calculated according to the following formula.
B = (U x A) / L
The terms above have the following meanings:
B = Backup Special Tax per Parcel classified as Single Family Residential Property or Approved Property expected to be classified as Single Family Residential Property within the Final Map.
U = Maximum Special Tax per Acre of Undeveloped Property per Section D.3 below.
A = Acreage of Single Family Residential Property expected to exist after build out in such Final Map at the time of calculation, as determined by the Administrator L = Number of Parcels of Single Family Residential Property expected to exist after build out in such Final Map at the time of calculation, as determined by the Administrator.
In the event any portion of the Final Map is changed or modified, the Backup Special Tax for all Parcels within such changed or modified area shall be $49,979 per Acre.
Notwithstanding the foregoing, the Backup Special Tax for anParcel of Developed Property for which a certificate of occupancy has been granted may not be revised.
City of Menifee
Community Facilities District No. 20222 (McLaughlin Village) Page 7 In the event any superseding Final Map is recorded as a Final Map within the boundaries of the CFD, the Backup Special Tax for all Parcels within such Final Map shall be $49,979 per Acre. The Backup Special Tax shall not apply to Multifamily Residential Property or NonResidential Property.
On each July 1, commencing July 1, 2023, the Backup Special Tax rate shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
2. Approved Property
The Maximum Special Tax for each Parcel of Approved Property expected to be classified as Single Family Residential Property shall be the Backup Special Tax computed pursuant to Section D.1.c above.
The Maximum Special Tax for each Parcel of Approved Property not expected to be classified as Single Family Residential Property shall be $49,979 per Acre.
On each July 1, commencing July 1, 2023, the Maximum Special Tax rate for Approved Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
3. Undeveloped Property and Provisional Undeveloped Property The Maximum Special Tax for each Parcel of Undeveloped Property and Provisional Undeveloped Property shall be $49,979 per Acre.
On each July 1, commencing July 1, 2023, the Maximum Special Tax rate for Undeveloped Property and Provisional Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing Fiscal Year 20222023 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property in accordance with the following steps:
Step One: The Special Tax shallbe levied Proportionately on each Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax rates in Table 1 to satisfy the Special Tax Requirement.
Step Two: If additional moneys are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax applicable to each such Parcel as needed to satisfy the Special Tax Requirement.
Step Three: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Parcel of Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Parcel as needed to satisfy the Special Tax Requirement.
City of Menifee
Community Facilities District No. 20222 (McLaughlin Village) Page 8 Step Four: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax levy on each Assessor's Parcel of Developed Property for which the Maximum Special Tax is the Backup Special Tax shall be increased in equal percentages from the Assigned Special Tax up to 100% of the Backup Special Tax as needed to satisfy the Special Tax Requirement.
Step Five: If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Special Tax shall be levied Proportionately on each Parcel of Provisional Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Parcel as needed to satisfy the Special Tax Requirement.
Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal Year against any Parcel of Residential Property as a result of a delinquency in the payment of the Special Tax applicable to any other Parcel be increased by more than ten percent (10%) above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default.
F. EXEMPTIONS
The City shall classify as Exempt Property, in the following order of priority, (i)Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii)Parcels which are used as places of worship and are exempt fromad valoremproperty taxes because they are owned by a religious organization, (iii) Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by a homeowners' association, (iv)Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (v) Parcels which are privately owned and are encumbered by or restricted solely for public uses, (vi) Parcels which are classified as NonResidential Property or (vii) Parcels restricted to other types of public uses determined by the City Council, provided that no such classification would reduce the sum of all Taxable Property to less than 6.20 Acres.
Notwithstanding the above, the City Council shall not classify anParcel as Exempt Property if such classification would reduce the sum of all Taxable Property to less than 6.20 Acres. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than 6.20 Acres will be classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E.
G. PREPAYMENT OF SPECIAL TAX
The following additional definitions apply to this Section G:
means $4,000,000 expressed in 2022 dollars, which shall increase by the Construction Inflation Index on July 1, 2023, and on each July 1 thereafter, or such lower amount (i) determined by the City Council as sufficient to provide the facilities under the authorized bonding program for CFD No. 20222, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more Bonds to finance additional facilities to be supported by Special Tax levied under this Rate and Method of Apportionment.
City of Menifee
Community Facilities District No. 20222 (McLaughlin Village) Page 9 means an account specifically identified in the Indenture or functionally equivalent to hold funds, which are available for expenditure to acquire or construct facilities eligible to be financed by CFD No. 20222.
Inflation means the greater of (i) 2% and (ii) the annual percentage change in the Engineering NewsRecord Building Cost Index for the city of Los Angeles, measured as of the Calendar Year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the City that isreasonably comparable to the Engineering NewsRecord Building Cost Index for the City of Los Angeles.
Facilities means the CFD Facilities minus (i) amounts deposited in the Construction Fund, (ii) amounts deposited in any escrow accounts funded by the Outstanding Bonds and anticipated to fund public facilities costs, and (iii) public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment, but in no event shall such amount be less than zero. means all previously issued Bonds issued and secured by the levy of Special Tax which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Tax.
1. Prepayment in Full
The Special Tax obligation may be prepaid and permanently satisfied for (i)Parcels of Developed Property, (ii) Parcels of Approved Property or Undeveloped Property for which a Building Permit has been issued, (iii) Parcels of Approved Property or Undeveloped Property for which a Building Permit has not been issued and (iv)Parcels of Provisional Undeveloped Property. The Special Tax obligation applicable to anParcel may be fully prepaid and the obligation to pay the Special Tax for such Parcel permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Parcel at the time of prepayment. An owner of anParcel intending to prepay the Special Tax obligation for such Parcel shall provide the CFD Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the nonrefundable deposit determined to cover the cost to be incurred by the CFD in calculating the Prepayment Amount (as defined below) for theParcel.
Within 15 days of receipt of such nonrefundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Taxes.
The Prepayment Amount shall be calculated as follows (some capitalized terms are defined below):
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Equals: Prepayment Amount
City of Menifee
Community Facilities District No. 20222 (McLaughlin Village) Page 10 The Prepayment Amount shall be determined as of the proposed prepayment date as follows:
1. Confirm that no Special Tax delinquencies apply to suchParcel.
2. For an Parcel of Developed Property, compute the Maximum Special Tax for the Parcel. For an Parcel of Approved Property or Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for theParcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Parcel. For an Parcel of Approved Property or UndevelopedProperty for which a Building Permit has not been issued, or Provisional Undeveloped Property, compute the Maximum Special Tax for theParcel.
3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount of Maximum Special Taxes that could be levied assuming build out of allParcels of Taxable Property based on the applicable Maximum Special Tax forParcels of Developed Property not including any Parcels for which the Special Tax obligation has been previously prepaid.
4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the Prepayment Amount (theRedemption
5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the
6. Determine the Future Facilities Costs.
7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to determine the amount of Future Facilities Costs for theParcel (the Facilities
8. Determine the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed from Special Tax prepayments.
9. Determine the Special Taxes levied on the Parcel in the current Fiscal Year which have not yet been paid.
10. Determine the amount the CFD Administrator reasonably expects to derive from the investment of the Bond Redemption Amount and the Redemption Premium from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the Prepayment Amount.
11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the
12. Verify the administrative fees and expenses of the CFD, the cost to invest the Prepayment Amount, the cost of redeeming the Outstanding Bonds, and the cost of recording notices to
City of Menifee
Community Facilities District No. 20222 (McLaughlin Village) Page 11 evidence the prepayment of the Special Tax obligation for theParcel and the redemption of Outstanding Bonds (the Fees and
13. The reserve fund credit (the Fund shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding 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.
14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the Administrative Fees and Expenses, less the Reserve Fund Credit.
15. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and Defeasance Amount shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Bonds or make debt service payments. The Future Facilities Amount shall be deposited into the Construction Fund. The Administrative Fees and Expenses shall be retained by the CFD.
The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next redemption from other Special Tax prepayments of Outstanding Bonds or to make debt service payments.
As a result of the payment of the current FiscalSpecial Tax levy as determined pursuant to paragraph 9 above, the CFD Administrator shall remove the current FiscalSpecial Tax levy for the Parcel from the County tax roll. With respect to anyParcel for which the Special Tax obligation is prepaid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Special Tax obligation and the release of the Special Tax lien for the Parcel, and the obligation to pay the Special Tax for suchParcel shall cease.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Tax that may be levied on all Parcels of Taxable Property after the proposed prepayment will be at least 1.1 times maximum annual debt service on the Bonds that will remain outstanding after the prepayment plus the estimated annual Administrative Expenses.
Tenders of Bonds in prepayment of the Special Tax obligation may be accepted upon the terms and conditions established by the City Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a casebycase basis as specifically approved by the City Council.
2. Prepayment in Part
The Special Tax obligation for an Parcel of Developed Property, Approved Property, Undeveloped Property, or Provisional Undeveloped Property may be partially prepaid. For purposes of determining the Partial Prepayment Amount, the provisions of Section G.1 shall be modified as provided by the following formula:
PP = ((PE A) x F) + A
City of Menifee
Community Facilities District No. 20222 (McLaughlin Village) Page 12 These terms have the following meaning:
PP = Partial Prepayment Amount
PE= the Prepayment Amount calculated according to Section G.1 F = the percent by which the owner of theParcel(s) is partially prepaying the Special Tax obligation
A = the Administrative Fees and Expenses determined pursuant to Section G.1 The owner of an Parcel who desires to partially prepay the Special Tax obligation for the Parcel shall notify the CFD Administrator of (i) suchintent to partially prepay the Special Tax obligation, (ii) the percentage of the Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as theescrow agent, if any. Within 5 days of receipt of such notice, the CFD Administrator shall notify such property owner of the amount of the nonrefundable deposit determined to cover the cost to be incurred by the CFD in calculating the Partial Prepayment Amount. Within 15 business days of receipt of such nonrefundable deposit, the CFD Administrator shall notify such owner of the amount of the Partial Prepayment Amount for the Parcel. A Partial Prepayment Amount must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment Amount.
With respect to any Parcel for which the Special Tax obligation is partially prepaid, the CFD Administrator shall (i) distribute the Partial Prepayment Amount as provided in Paragraph 15 of Section G.1, and (ii) indicate in the records of the CFD that there has been a partial prepayment for the Parcel and that a portion of the Special Tax obligation equal to the remaining percentage (1.00 F) of the applicable Special Tax will continue to be levied on theParcel pursuant to Section E.
H. TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding the Special Tax shall be levied on all Parcels subject to the Special Tax pursuant to Section E. The Special Tax shall cease not later than the 20642065 Fiscal Year, however, Special Taxes will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all the required interest and principal payments on the CFD No. 20222 Bonds have been paid; (ii) all authorized facilities of CFD No. 20222 have been acquired and all reimbursements tothe developer have been paid, (iii) no delinquent Special Taxes remain uncollected and (iv) all other obligations of CFD No. 20222 have been satisfied.
City of Menifee
Community Facilities District No. 20222 (McLaughlin Village) Page 13 I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinaryad valorem property taxes, provided, however, that CFD No. 20222 may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquentParcels as permitted by the Act.
J. APPEALS OF SPECIAL TAXES
Any taxpayer may file a written appeal of the Special Taxes levied on his/herParcel(s) with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes.
During 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 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 CFD Administrator agrees with the appellant, the CFD Administrator shall grant a credit to eliminate or reduce future Special Taxes on the Parcel(s). No refunds of previously paid Special Taxes shall be made unless approved by the CFD Administrator.
The CFD Administrator shall interpret this Rate and Method of Apportionment and make determinations relative to the annual levy and administration of the Special Taxes and any taxpayer who appeals, as herein specified.