SECTION 14. Pursuant to the provisions of the Act, the levy of the Special Tax and a proposition to establish the appropriations limit specified above shall be subject to the approval of the qualified electors of the Community Facilities District at a special election. The City Council hereby finds and determines that no persons were registered to vote within the territory of the proposed Community Facilities District as of March 15, 2023, and that 12 or more persons have not been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close 535
of the public hearing held by the City Council on the establishment of the Community Facilities District. Accordingly, pursuant to Section 53326 of the Act, the vote shall be by the landowners of the Community Facilities District and each person who is the owner of land as of the close of said public hearings, or the authorized representative thereof, shall have one vote for each acre or portion of an acre that he or she owns within the Community Facilities District not exempt from the Special Tax. The voting procedure shall be by mailed or hand-delivered ballot.
SECTION 15. KB HOME has heretofore advanced certain funds, and may advance additional funds, which have been or may be used to pay costs incurred in connection with the creation of the Community Facilities District and the issuance of special tax bonds thereby. The City Council has previously approved the acceptance of such funds for the purpose of paying costs incurred in connection with the creation of the Community Facilities District and the issuance of special tax bonds thereby. The City Council proposes to repay all or a portion of such funds expended for such purpose, solely from the proceeds of such bonds, pursuant to the Deposit Agreement. The Deposit Agreement is hereby incorporated herein as though set forth in full herein.
SECTION 16. The City Council hereby finds and determines that all proceedings up to and including the adoption of this Resolution were valid and in conformity with the requirements of the Act. In accordance with Section 53325.1 of the Act, such finding shall be final and conclusive.
SECTION 17. All actions heretofore taken by the officers, employees and agents of the City with respect to the establishment of the Community Facilities District, or in connection with or related to any of the matters referred to herein, are hereby approved, confirmed and ratified.
SECTION 18. The officers, employees and agents of the City are hereby authorized and directed to take all actions and do all things that they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof.
SECTION 19. This Resolution shall take effect immediately upon its adoption.
The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED this 18th day of April 2023.
PAUL S. LEON, MAYOR
536
ATTEST:
SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
BEST BEST & KRIEGER LLP
CITY ATTORNEY
537
CLERK’S CERTIFICATE
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO )
CITY OF ONTARIO )
I, SHEILA MAUTZ, City Clerk of the City of Ontario, California, DO HEREBY CERTIFY that the foregoing Resolution No. 2023- was duly passed and adopted by the City Council of the City of Ontario at their regular meeting held April 18, 2023 by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
SHEILA MAUTZ, CITY CLERK
(SEAL)
The foregoing is the original of Resolution No. 2023- duly passed and adopted by the City Council of the City of Ontario, California, at their regular meeting held on April 18, 2023.
SHEILA MAUTZ, CITY CLERK
(SEAL)
538
EXHIBIT A
FACILITIES, SERVICES AND INCIDENTAL EXPENSES
Facilities
The types of facilities to be financed by the Community Facilities District are street and bridge improvements, including grading, paving, curbs and gutters, sidewalks, street signalization and signage, street lights and parkway and landscaping related thereto, domestic and recycled water distribution facilities, sewer collection facilities, solid waste facilities, storm drainage facilities, park and recreation facilities and equipment, aquatic facilities and equipment, fire facilities and equipment, police facilities and equipment, library facilities and equipment, fiber optic telecommunication system facilities, general governmental office, administrative and meeting facilities, and land, rights-of-way and easements necessary for any of such facilities.
Facilities to be Purchased
The types of facilities to be purchased as completed facilities are street and bridge improvements, including grading, paving, curbs and gutters, sidewalks, street signalization and signage, street lights and parkway and landscaping related thereto, domestic and recycled water distribution facilities, sewer collection facilities, solid waste facilities, storm drainage facilities, park and recreation facilities and equipment, aquatic facilities and equipment, fire facilities and equipment, police facilities and equipment, library facilities and equipment, fiber optic telecommunication system facilities, general governmental office, administrative and meeting facilities, and land, rights-of-way and easements necessary for any of such facilities.
Services
The types of services to be financed by the Community Facilities District are police protection services, fire protection and suppression services, ambulance and paramedic services, maintenance and lighting of parks, parkways, streets, roads and open space, flood and storm protection services and maintenance and operation of any real property or other tangible property with an estimated useful life of five or more years that is owned by the City.
Incidental Expenses
The incidental expenses proposed to be incurred include the following:
(a) the cost of planning and designing public facilities to be financed, including the cost of environmental evaluations of those facilities; (b) the costs associated with the creation of the Community Facilities District, issuance of bonds, determination of the amount of taxes, collection of taxes, payment of taxes, or costs otherwise incurred in order to carry out the authorized purposes of the Community Facilities District; and (c) any other expenses incidental to the construction, completion, and inspection of the authorized work.
539
EXHIBIT B
PROPOSED RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX 540
City of Ontario CFD No. 64 1 February 13, 2023
EXHIBIT B
CITY OF ONTARIO
COMMUNITY FACILITIES DISTRICT NO. 64
(SUNSET RANCH)
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
Special Tax es shall be levied on all Assessor’s Parcels in the City of Ontario Community Facilities District No. 64 (Sunset Ra nch) ( “CFD No. 64” ) and collected each Fiscal Year , commencing in Fiscal Year 2023-24, in an amount determined by the City Council of the City of Ontario through the application of the Rate and Method of Apportionment, as described below.
All of the real property in CFD No. 64, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable Final Subdivision Map, parcel map, condominium plan, or other recorded County map.
“Act” means the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the California Government Code.
“Administrative Expenses ” means the following actual or reasonably estimated co sts directly related to the administration of CFD No. 64: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or CFD No. 64 or both); the costs of collecting the Special Taxes (whether by the County or otherwise); the cost s of remitting the Special Tax es to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the c osts to the City or CFD No. 64 of complying w ith arbitrage rebate requirements; the costs to the City or CFD No. 64 of complying with City, CFD No. 64, or obligated persons disclosure requirements associated with applicable federal and state securities laws and of the Act; the costs associ ated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City or CFD No. 64 related to the analysis and reduction, if any, of the Special Tax A on Single Family Property in accordance with Section C.1 herein; the costs of the City or CFD No. 64 related to an appeal of the Special Tax; the costs associated with the release of funds from any escrow account; the City’s administration fees and third party expenses; the costs of City staff time a nd reasonable overhead relating to CFD No. 64; and amounts estimated or advanced by the City or CFD No. 64 for any other 541
City of Ontario CFD No. 64 2 February 13, 2023
administrative purposes of the CFD , including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.
“Assessor’s 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 Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” 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 A” means the Special Tax A for each Land Use Class of Developed Property, as determined in accordance with Section C.1.a.2 below.
“Backup Special Tax A” means the Special Tax A for each Land Use Class of Developed Property, as determined in accordance with Section C.1.a.3 below.
“Bonds” means any bonds or other debt (as defined in Section 53317(d) of the Act) issued by CFD No. 64 under the Act and payable from Special Tax A.
“Buildable Lot” means an individual lot, within a Final Subdivision Map or an area expected by CFD No. 64 to become Final Mapped Property, such as the area within a Tentative Tract Map , for which a building permit may be issued without further subdivision of such lot.
“CFD Administrator ” means an official of the City responsible for determining the Special Tax A Requirement and Special Tax B Req uirement, providing for the levy and collection of the Special Taxes, and performing the other duties provided for herein.
“CFD No. 64” means City of Ontario Community Facilities District No. 64 (Sunset Ranch).
“City” means the City of Ontario, California.
“City Council” means the City Council of the City, acting as the legislative body of CFD No. 64.
“Contractual Impositions ” means (a) a voluntary contractual assessment established and levied on an Assessor ’s Parcel pursuant to Chapter 29 of Pa rt 3 of Division 7 of the California Stree ts and Highways Code (commencing with Section 5898.10 et seq. ), as amended from time to time, (b) a special tax established and levied on an Assessor ’s Parcel pursuant to Section 53328.1 of the Ca lifornia Governmen t Code and related provisions of the Act, as amended from time to time, and (c) any other fee, charge, tax, or assessment established and levied on an individual Assessor ’s Parcel pursuant to a contractual agreement or othe r voluntary consent b y the owner thereof (e.g., proper ty owner association assessments).
542
City of Ontario CFD No. 64 3 February 13, 2023
“County” means the County of San Bernardino.
“Designated Buildable Lot” means a Buildable Lot for which a building permit has not been issued by the City as of the date of calculation of the Backup Special Tax A.
“Developed Property” means for each Fiscal Year, all Taxable Property, exclusive of Final Mapped Property, Taxable Property Owner Association Proper ty, and Taxable Public Property, for which a buildi ng perm it or other applicabl e permit for new construction was issued after January 1, 2023, and before May 1 of the prior Fiscal Year.
“Expected Residential Lot Count” means 432 Buildable Lots of Single Family Property in Tax Zone 1 and 36 Buildable Lots of Single Family Property in Tax Zone 2, or, as determined by the CFD Adminis trator, the number of Buildab le Lots of Single Family Property based on the most recent Tentative Tract Map(s) or most recently recorded Final Subdivision Map(s) or modified Final Subdivision Map(s).
“Facilities” means the public facilities authorized to be fin anced, in whole or in p art, by CFD No. 64.
“Final Mapped Property” means, for each Fiscal Year, all Taxable Property, exclusive of Developed Property, Taxable Property Owner Association Property, and Taxable Public Property, which as of January 1 of the previous Fiscal Year was located within a Final Subdivision Map. The term Final Mapped Property shall include any parcel map or Final Subdivision Map, or portion thereof , that creates individual lots for which a building permit may be issued, includi ng P arcels that are designated as a remainder Parcel (i.e., one where the size, location, etc., precludes any further subdivision or taxable use).
“Final Subdivision Map” means a final tract 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 a condominium plan recorded pursuant to California Civil Code Section 4285 that, in either case, creates individual lots for which building permits may be issued without further subdivision.
“Fiscal Year” means the period starting July 1 and ending on the following June 30.
“Gated Community Attached Dwelling Unit” means, with respect to S pecial Tax B, a Unit within any re sidential building containing two or more dwelling unit s (including attached condominiums, townhouses, duplexes, triplexes, and apartments) within a gated community that, within such community, is primarily served by private interior streets.
“Indenture” 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.
“Land Use Class” means any of the classes listed in Tables 1, 2, and 3 below.
543
City of Ontario CFD No. 64 4 February 13, 2023
“Lower Income Household Welfare Exemption Property” means, for each Fiscal Year, an Assessor’s Par cel wit hin the boundaries of CFD No. 64 that is subject to a welfare exemption und er subdivision (g) of Section 214 of the Cali fornia Revenue and Taxation Code ( or any successor statute), as indicated in the most recent County assessor’s roll finalized prior to such Fiscal Year.
“Maximum Special Tax A” means, with respect to an Assesso r’s Parcel of Taxable Property, the Maximum Special Tax A determined in accordance with Section C.1 below that can be levied in any Fiscal Year on such Assessor’s Parcel of Taxable Property.
“Maximum Special Tax B” means, with respect to an Assessor’s Par cel of Taxable Property, the Maximum Special Tax B determined in accordance with Section C.2 below that can be levied in any Fiscal Year on such Assessor’s Parcel of Taxable Property.
“Minimum Sale Price” means the minimum price at which Units of a given Land Use Class have sold or are expected to b e sold in a normal marketing envir onment and shall not include prices for such Units that are sold at a discount to expected sales prices for the purpose of stimulating the initial sales activity with respect to such Land Use Class.
“Multiple Family Dwelling Unit” means, with respect to Special Tax B, a Unit within any residential building c ontaining two or more dwelling units, inc luding attached condominiums, townhomes , duplexes, triple xes, and apartments , but excluding Gated Community Attached Dwelling Units.
“Non-Residential Property ” means all Assessor’s Parcels of Developed Property for which a building permit was i ssued by the City permitting the construction of one or more non-residential structures or facilities.
“Other Resid ential Property” means, w ith respect to Special Tax A, all Assessor’s Parcels of Developed Property for which a building permit was issued by the City for purposes of co nstructing Units, excluding Single Family Attached Pro perty and S ingle Family Detached Property.
“Outstanding Bonds” means all Bonds whic h are outstanding under and in accordance with the provisions of the Indenture.
“Price Point Consultant” means any consultant or firm of s uch consultants selected by CFD No. 64 that (a) h as substantial experience in performing price point studies for residential units within community facilities districts establi shed under the Act or otherwise estimatin g or confirming pricing for residential units in such community facilities districts, (b) has recognized expertise in analyzing economic and real estate data that relates to the pricing of residential units in such community facilities districts, (c) is in fact independent a nd not under the control of CFD No. 64 or the City, ( d) does not have any substantial interest, direct or indirect, with or in (i) CFD No. 64, (ii) the City, (iii) any owner of real property in CF D No. 64, or (iv) any real pro perty in CFD No. 64, and (e) is not connected with CFD No. 64 or the City as an off icer or employee thereof, but who may be regularly retained to make reports to CFD No. 64 or the City.
544
City of Ontario CFD No. 64 5 February 13, 2023
“Price Point Study” means a price point study or a letter updating a previous price point study prepared by the Price Point Consultant pursuant to Section C herein.
“Property Owner Association Property ” means, for each Fiscal Year, any pro perty within the boundaries of CFD No. 64 that was owned by a property owner associat ion, including any master or sub-association, as of January 1 of the prior Fiscal Year.
“Proportionately” means (a) for Developed Propert y in the fir st step of Section D .1 below, that the ratio of the actual Special Tax A levy to the Maximum Special Tax A is equal for all Assessor’s Parcels of Developed Property; however, for Developed Property in the fourth step of Section D .1 below, Proportionately m eans that the amount of the increase above the Assigned Special Tax A, if ne cessary, is equal for all Assessor’s Parcels of Developed Property, except that if the Backup Special Tax A limits the increase on any Assessor’s Parcel(s) , then the amount of the increase shall be equal for the remaining Assessor’s Parcels; (b) with respe ct to Spe cial Tax B, that the ratio of the actual Special Tax B levy to the Maximum Special Tax B is equal for al l Assessor ’s Parcels of Developed Property; (c) for Final Mapped Property, that the ratio of the actual Special Tax A levy to the Maximum Speci al Tax A is equal for all Assessor’s Parc els of Final Mapped Property; (d) for Undeveloped Property, that the ratio of the actual Special Tax A levy to the Maximum Spec ial Tax A is equal for all Assessor's Parcels of Undeveloped Property ; (e ) for Taxable P roperty Owner Association Prop erty, that the ratio of the actual Special Tax A levy to the Maximum Sp ecial Tax A is equal f or all Assessor’s Parcels of Taxable Property Owner Association Property; and (f) for Taxable Public Property, that the ra tio of the actual Special Tax A levy to t he Maximum Special Tax A is equal for all Assessor’s Parcels of Taxable Public Property.
“Public Property” means, for each Fiscal Year, property w ithin the boundaries of C FD No. 64 that is (a) owned by, irrevocably offered to, or dedicated to the federal government, the State, the County, the City, or any local government or other publi c agency or (b) encumbered by an easement for purposes of public or utility right-of-way that makes impractical its use for any purpose other t han that set forth in such eas ement; provided that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act s hall be taxed and classified acco rding to its use.
“Rate and Method of Apportionment” means this Rate and Method of A pportionment of Special Tax.
“Residential Floor Area ” means all of the Square F ootage of liv ing area within the perimeter of a Unit, not inc luding any carport, walkway, ga rage, overhang, patio, enclosed patio, or similar area . The determination of Reside ntial Floor Area shall be as set forth in the building permit(s) issued for such As sessor’s P arcel, or as set forth in other official records maintained by the C ity’s Building Department or other appropriate means selected by CFD No. 64. The actual Square Footage shall be rounded up to the next whole square f oot. Once such det ermination has been made for a n Assessor’s Parcel, it shall remain fixed in all future Fiscal Years unless an appeal pursuant to Section F below is approved that results in a change in the actual Square Footage.
545
City of Ontario CFD No. 64 6 February 13, 2023
“Residential Property” means, for each Fiscal Year, an Assessor’s Parcel for wh ich a building permit for ne w construction of one or more Unit s was issued after January 1, 2023, and before May 1 of the prior Fiscal Year.
“Services” means the services authorized to be financed, in whole or in part, by CFD No.
64. “Single Family Attac hed Property ” means all Assesso r’s Parcels of Developed Property for which a building permit or use permit was issue d for construction of a residential struc ture consisting of two or more Units that share common walls, have separate Assessor’s Parcel Numbers assigned to them (except for a duplex unit, whic h may shar e an Assessor’s Parcel with another duplex unit), and m ay be purchased by individual homebuyers (which shall still be the case even if the Units are purchased and subsequently of fered for rent by the owner of the Unit), inc luding such residential structures within a condominium project as defined in Civil Code Section 4125.
“Single Family Detached Property ” means all Assessor’s Parcels of Developed Property for which a buil ding permit was issued for construction of a Unit, o n one legal lot, that does not share a common wall with another Unit.
“Single Family D etached Dwelling Unit” means a Unit of Single Family Detached Property.
“Single Family Property ” means all Assessor’s Parcels of Single Family Attached Property and Single Family Detached Property.
“Special Taxes” means, collectively, Special Tax A and Special Tax B.
“Special Tax A” means the special tax authorized by the qualified electors of CFD No. 64 to be levied within the boundaries of CFD No. 64 to pay for Facilities and Services.
“Special Ta x A Requirement” means for any Fiscal Year that amount required, after taking into account available amounts held in the funds and accounts established unde r the Indenture, for CFD No. 64 to: (i) pay debt service on all Outsta nding Bonds which is due in the calendar year that commences in such Fiscal Year ; (ii) pay periodic costs on the Bonds, including, but not limited to, credit enhancement and rebate payme nts on the Bonds; (iii) pay a pro rat a share of Administrative Expenses; (iv) provide any amounts required to establis h or replenish any reserve fund for the Bonds; (v) pay directly for acquisition or construction of Facilities , or the cost of Services, to the ex tent that the inclusion of such amount s does not increase the S pecial Tax A levy on Final Map ped Property or Undeveloped Property; and (vi) provide an amount equal to Special Tax A delinquencies based on the historical delinquency rate for Special T ax A as determined by the CFD Administrator.
“Special Tax B” means the special tax authorized by the qualified electors of CFD No. 64 to be levied within the boundaries of CFD No. 64 to pay for Services.
546
City of Ontario CFD No. 64 7 February 13, 2023
“Special Tax B Requirement” means for any Fiscal Y ear tha t amount required , after taking into account avai lable amounts in any funds and acc ounts established to pay for Services, to pay the cost of Service s, a pro rata share of Administrative Expenses, and an amount equal to Special Tax B delinquencies ba sed on the historical delinquency rate for Special Tax B as determined by the CFD Administrator.
“Square Footage” or “Sq. Ft.” means the floor area square footage reflected on the original construction building permit , or as set forth in other official re cords maintained by the City’s Building Department or ot her appropriate means se lected by CFD No. 64, issued for construction of Residential Property or No n-Residential Property , plus any square f ootage subsequently added to a building of Non- Residential P roperty after issuance of a building permit for expansion or renovation of such building.
“State” means the State of California.
“Taxable Property” means, for each Fiscal Year, all of the Assessor’s Parcels within the boundaries of CFD No. 64 that are not exempt from the Special Taxes pursuant to law or Section E below.
“Taxable P roperty Own er Associat ion P roperty” means, for each Fiscal Year, all Assessor’s Parcels of Property Owner Association Property that are not exempt from the Special Taxes pursuant to Section E below.
“Taxable Public Property” means, for each Fiscal Year, all Assessor’s Parcels of Public Property that are not exempt from the Special Taxes pursuant to law or Section E below.
“Tax Zone ” means a mutu ally exclusive geographic area, w ithin which particular Special Taxes may be levied pursuant to this Rate and Method of Apportionment.
Attachment 1 identifies the two Tax Zones in CFD No. 64.
“Tax Zone 1” means the geographic ar ea designated in Attachmen t 1 of this Rate and Method of Apportionment as Tax Zone 1, is consistent with the boundar ies of TTM s 20158, 20159, and 20160, and was commonly referred to as the Belmont, Moonstone, and Torrey projects at the time of formation of CFD No. 64.
“Tax Zone 2” means the geographic ar ea designated in Attachmen t 1 of this Rate and Method of Apportionment as Tax Zone 2, is consistent with the boundary of TTM 18916, and was commonly referred to as the Countryside project at the time of formation of CFD No. 64.
“Tentative Trac t Map” means a map: (i) showing a proposed subdi vision of an Assessor’s Parcel(s) and the conditions pertaining thereto ; (ii) tha t may or may not be based on a detailed survey; and (iii) that is not recorded by the County to create legal lots.
“Total Tax Burden” means, for a Unit within a Land Use Clas s, for the Fiscal Year in which the Total Tax Burden is being calculated, the sum of (a) the Assigned Special Tax A for such Land Use Class for such Fiscal Year, plus (b) the Special Tax B for such Land 547
City of Ontario CFD No. 64 8 February 13, 2023
Use Class for such Fiscal Year , plus ( c) the ad valorem property taxes, special assessments, special taxes for any overlappi ng comm unity facilities dist ricts, and any other governmental fees , charges (other than fees or charges for services such as sewer and tr ash), taxes , and assessments (which do not include Contractual Impositions) collected by the County on ad valorem tax b ills, plus (d) property owne r association assessments (but excluding the refuse collection portion of such assessments), and that the CFD Administrator estimates would be levied or impose d on suc h Unit in such Fiscal Year if the residential dwelling unit thereon or therein had been c ompleted and sold, a nd was subject to such fees, charges, taxes, and assessments in such Fiscal Year.
“Trustee” means the trustee or fiscal agent under the Indenture.
“TTM 18916” means Tentative Tract Map No. 18916, the area o f which i s located within CFD No. 64.
“TTM 20158” means Tentative Tract M ap N o. 20158, the area of which is located within CFD No. 64.
“TTM 20159” means Tentative Tract Map No. 20159, the area of which i s located within CFD No. 64.
“TTM 20160” means Tentative Tract Map No. 20160, the area of which i s located within CFD No. 64.
“Undeveloped Property ” means, for each Fiscal Year, a ll Taxa ble Prope rty not classified as Dev eloped Property, Final Mapped Property, Taxable P ublic Property, or Taxable Property Owner Association Property.
“Unit” means an in dividual single -family detached or a ttached home, townhome, condominium, ap artment, or other reside ntial dwelling unit, incl uding each separate living area within a half-plex, duplex, triplex, fourplex, or other residential structure.
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, beginning with Fiscal Year 20 23-24, all Taxable Property within CFD No. 64 shall be organ ized into Tax Zone 1 or Tax Zone 2, and then clas sified as Developed Property, Final Mapped Property, Taxable Public Proper ty, Taxable Property Owner Association Pr operty, or Undeve loped Proper ty, and shall be subject to Special Taxes in accordance with the Rate and Method of Apportionment as determined pursuant to Sections C and D below.
Assessor’s Parcels of Developed Proper ty shall be further classified as : Single Family Attached Property, Single Family Detached Property, or Other Resident ial Property (for Special Tax A); Single Family Detached Dwelling Unit, Multiple Family Dwelling Unit, or Gated C ommunity Attached Dwelling Unit (for Sp ecial Tax B ); or Non- Residential Property. For Specia l Tax A, Assessor’s Parcels of Single Family Property in Tax Zone 1 shall be assigned to Land Use Classes 1 throu gh 11, and Single Family Property in Tax 548
City of Ontario CFD No. 64 9 February 13, 2023
Zone 2 shall be assigned to Land Use Classes 14 through 18, as listed in Tables 1 and 2 below based on the Residential Floor Area of the Units on such Assessor’s Parcels. Also for Special Tax A, Other Residential Property and Non- Residential Pro perty shall be assigned to Land Use Classes 12 and 13, respectively, in T ax Zone 1, and to Land Use Classes 19 and 20 in Tax Zone 2.
C. MAXIMUM SPECIAL TAX
1. Special Tax A
At least 3 0 days prior to the issuance of Bonds, the Assigne d Special Tax A on Developed Property (set forth in Ta bles 1 and 2 below) shall be analyzed in accordance with and subject to the conditions set forth in this Section C. At such time, CFD No. 64 shall select and engage a Price Point Consultant and the CFD Administrator shall re quest the Pr ice Point C onsultant to pre pare a Price Point Study setting forth the Minimum Sale Price of Units within each Land Use Class.
Tax Zone 1
If based upon such Price Point Study t he CFD Admini strator calculates that the Total Tax Burden applica ble to Units within one or more Land Use C lasses of Single Family Property to be constructed within Tax Zone 1 exceeds 2.22% of the Minimum Sale Price of Units of Single Family Detached Property , the Assigned Special Tax A shall be re duced to the extent ne cessary to cause the Tot al Tax Burden that shall apply t o Units within s uch Land Use Class(es) not to exceed
2.22% of the Minimum Sale Price of Units of Single Family Detached Property .
In addition, if based upon such Pr ice Point Study the CFD A dministrator calculates that the To tal Tax Burden, excluding property owner assoc iation assessments, applicable to Units within one or more Land Use Classes of Si ngle Family Prop erty to be constructed within Tax Zone 1 exceeds 1.95 % of the Minimum Sale Price of such Units, the Assigned Spec ial Tax A shall be reduced to the extent nec essary to caus e the Total Tax Burden, excluding property owner association assessments, that shall apply to Units within such Land Us e Class(es) not to exceed 1.95% of the Minimum Sale Price of such Units.
Tax Zone 2
If based upon such Price Point Study t he CFD Adm inistrator calculates that the Total Tax Burden applicable to Units within one or more Land Use C lasses of Single Family Property to be constructed within Tax Zone 2 exceeds 2.15% of the Minimum Sale Price of such Units, the Assigned Special Tax A shall be reduced to the extent necessary to c ause the Total Tax Burden that shall apply t o Units within such Land Use Class(es) not to exceed 2.1 5% of the Minimum Sale Price of such Units.
Each Assigned Special Tax A reduction for a Land Use Class shall be calculated by the CFD Administrator separately, and it shall not be required that such reduction be proport ionate among Land Use Classes. In connection w ith an y 549
City of Ontario CFD No. 64 10 February 13, 2023
reduction in the Assigned Special Tax A, the Backup Special Tax A shall also be reduced by the CFD Admi nistrator based on the percentage reductio n in Maximum Special Tax A revenues within the Tentative Tract Map area(s) where the Assigned Special T ax A r eductions occurred. U pon determ ining the reductions, if any, in the Assigned Special Tax A and Backup Special Tax A required pursuant to this Sect ion C, the CFD Administrator shall c omplete the Certificate o f Modification of Spe cial Tax substantiall y in t he form attached hereto as Exhib it A (the “Certificate of Modification”) , shall execute su ch completed Certificate of Modification, and shall deliver such executed Certific ate of Modi fication to CFD No. 64. Upon receipt thereof, if in satisfactory f orm, CFD No. 64 shall execut e such Cer tificate o f Modific ation. The reduced Assigned Special Tax A and Backup Special Tax A specified in such Certificat e of Modification shall become effec tive upon the execut ion of such Certificate of Modification by CFD No. 64.
The Special Tax A r eductions required pursuant to this section shall be reflected in an amended notice of Special Tax lien, which CFD No. 64 shall cause to be recorded with the County Recorder as soon as practicable after execution of the Certificate of Modification by CFD N o. 64. Th e reductions in this section apply to Single Family Proper ty, but not to Other Residential Property or Non - Residential Property.
a. Developed Property
1) Maximum Special Tax A
The Maximum Spec ial Ta x A that may be levied in any Fiscal Year for each Assessor ’s Parcel cla ssified as Developed Property shall be the greate r of (i) the amount derived by applicati on of the Assigned Special Tax A or (ii) the amount derived by appl ication of the Backup Special Tax A. The Maximum S pecial Tax A shall not incre ase in f uture y ears, other than as calculated pursuant to Section C.1.a.3 below.
2) Assigned Special Tax A
The Assigned Special Tax A that may be levied in any Fi scal Year for each Land Use Class is shown below in Tables 1 and 2.
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City of Ontario CFD No. 64 11 February 13, 2023
TABLE 1
TAX ZONE 1
ASSIGNED SPECIAL TAX A – DEVELOPED PROPERTY
T
ABLE 2
TAX ZONE 2
ASSIGNED SPECIAL TAX A – DEVELOPED PROPERTY
Land
Use
Class
Description
Residential
Floor Area
(Square
Footage)
Assigned
Special Tax A
1 Single Family Property < 1,101 $3,179 per Unit
2 Single Family Property 1,101 – 1,300 $3,461 per Unit
3 Single Family Property 1,301 – 1,500 $3,629 per Unit
4 Single Family Property 1,501 – 1,700 $3,906 per Unit
5 Single Family Property 1,701 – 1,900 $4,288 per Unit
6 Single Family Property 1,901 – 2,100 $4,493 per Unit
7 Single Family Property 2,101 – 2,300 $5,131 per Unit
8 Single Family Property 2,301 – 2,500 $5,148 per Unit
9 Single Family Property 2,501 – 2,700 $5,179 per Unit
10 Single Family Property 2,701 – 2,900 $5,224 per Unit 11 Single Family Property > 2,900 $5,243 per Unit
12 Other Residential Property $75,682 per Acre
13 Non-Residential Property $75,682 per Acre
Land
Use
Class
Description
Residential
Floor Area
(Square
Footage)
Assigned
Special Tax A
14 Single Family Property < 2,301 $4,345 per Unit
15 Single Family Property 2,301 – 2,500 $4,362 per Unit 16 Single Family Property 2,501 – 2,700 $4,393 per Unit 17 Single Family Property 2,701 – 2,900 $4,438 per Unit 18 Single Family Property > 2,900 $4,457 per Unit
19 Other Residential Property $44,309 per Acre
20 Non-Residential Property $44,309 per Acre
551
City of Ontario CFD No. 64 12 February 13, 2023
3) Backup Special Tax A
The Backup Special Tax A shall be $4,304 per Unit for S ingle Family Property in Ta x Zone 1 and $4,398 in Ta x Zone 2.
However, if the Expected Residential Lot Count of Single Family Property does not equal 432 in Tax Zone 1 and 36 in Tax Zone 2, and the City has not is sued Bonds, then the Backup Special Tax A for Designate d Buildable Lots of Single Family Property in each Tax Zone shall be calculated according to the following formulas:
Tax Zone 1 = $1,859,513 ÷ Expected Residential
Lot Count in Tax Zone 1 for Single
Family Property
Tax Zone 2 = $158,316 ÷ Expected Residential Lot
Count in Tax Zone 2 for Single
Family Property
If any portion of a Final Subdivision Map, or any area expected by CFD No. 64 to become Final Mapp ed Property – such as the area within TTM 18916, TTM 20158, TTM 20159, TTM 20160, or any other Tentative Tract Map – changes any t ime after the City has issued Bonds, causing an adjustme nt to the number of Designated Buildable Lots, then the Bac kup Special Tax A for all Designated Buildable Lots of Sin gle Family P roperty subject to the change shall be calculated according to the following steps:
Step 1: Determine the tota l Backup Special Tax A that could have been collected from Designated
Buildable Lots of Single Family Property within the
applicable Tax Zone , prior to th e Final Subdivision
Map or expected Final Mapped Property change.
Step 2: Divide the amount determined in Step 1 by the
number of D esignated Buildabl e Lots of Single
Family Property that ex ists in the applica ble Tax
Zone after the Fin al Subdivisi on Map or expected
Final Mapped Property change.
Step 3: Apply the amount determined in Step 2 as the
Backup S pecial Tax A per U nit for Single Family
Property in the applicable Tax Zone.
The Backup Spec ial Tax A for an Assessor’s Parcel shall not change once an A ssessor’s Parcel is classified as Developed Property.
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City of Ontario CFD No. 64 13 February 13, 2023
b. Final Mapped Property, Taxable Public Proper ty, Taxable Property Owner Association Property, and Undeveloped Property
The Maximum Special Tax A for Final Mapped Property, Taxable Public Property, T axable Property Owner A ssociation Property, and Undeveloped Property shall be $75,682 per Acre in Tax Zone 1 and $44,309 per Acre in Tax Zone 2, and shall not be subject to increase or reduction and, therefore, shall remain the same in every Fiscal Year.
2. Special Tax B
The Maximum Special Tax B for each As sessor’s Parcel classified as Developed Property shall be determined by reference to Table 3 below.
T
ABLE 3
MAXIMUM SPECIAL TAX B – DEVELOPED PROPERTY
Land Use Class Maximum Special Tax B
Fiscal Year 2023-24
Residential Property
Single Family Detached Dwelling Unit $1,501.46 per Unit Multiple Family Dwelling Unit $1,301.51 per Unit
Gated Community Attached Dwelling Unit $1,091.38 per Unit Non-Residential Property
$0.277680 per Sq. Ft.
On January 1 of eac h Fiscal Year, commencing January 1, 2024, the Maximum Special Tax B to be applied in the ne xt Fiscal Year shall be subject t o an automatic increase at a rat e equal to 4.0% of the amount in effec t for the prior Fiscal Year.
3. Multiple Land Use Classes on an Assessor’s Parcel
In some instances an Assessor’s Parcel of Developed Property may cont ain more than one Land Use Class. The Maxim um Sp ecial Tax A levied on such Assessor’s Parcel shall be the sum of the Maximum Special Tax A for all Units of Single Family Property and Acre s of Other Residen tial Property and Non- Residential Property (based on the pro ra ta share of Square F ootage betw een Other Residential Property and Non- Residential Property , according to the applicable building permits, Final Subdivision Map, parcel map, condominium plan, or other recor ded C ounty ma p) located on that Assessor ’s Parcel. The Maximum Special Tax B levied on such Assessor’s Parcel shall be the sum of the Maximum Special Tax B for all Units of Res idential Pro perty and all Square Footage of Non- Residential Propert y (based on the a pplicable building permits , 553
City of Ontario CFD No. 64 14 February 13, 2023
Final Subdivision Map, parcel map, condominium plan, or other recorded County map) located on that Assessor’s Parcel.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
1. Special Tax A
Each Fiscal Year, beginning with Fisca l Year 2023-24, th e CFD Administrator shall determine the Special Tax A Requirement for such Fiscal Year. The Special Tax A shall then be levied as follows:
First: If needed to satisfy the Special Tax A Requirement, Special Tax A shall be levied Proportionately on ea ch A ssessor’s Parcel of D eveloped Proper ty up to 100% of t he applicable Assigned Special Tax A;
Second: If add itional monies are needed to satisfy the Special Tax A Requirement after the first step has been completed, then Special Tax A shall be levied Proportionately on each Assessor’s Parcel of Final Mapped P roperty up to 100% of the Maximum Spec ial Tax A for Final Mapped Property;
Third: If additional mon ies are needed to satisfy the Special Tax A Requirement after the first two steps ha ve been compl eted, then Special Tax A shall be levied Proportionately on ea ch Assessor’s Parcel of Undevelope d Property up to 100% of the Maximum Special Tax A for Undeveloped Property;
Fourth: If add itional monies are need ed to satisfy the S pecial Tax A Requirement after the first three ste ps have been co mpleted, then the levy of Special Tax A on each Assessor’s Parcel of Dev eloped Property whose Maximum Special Tax A is determined through the application of the Backup Special Tax A shall be increased Pr oportionately from the Assigned Specia l Tax A up to t he Maximum Special Tax A for each such Assessor’s Parcel;
Fifth: If additional monies are needed to satisfy the Special Tax A Requirement after the first four steps have been completed, the n Special Tax A shall be levied Proportionately on each Assessor’ s Parcel of Taxabl e Pr operty Owner Association Property up to the Maximum Special Tax A for Taxable Property Owner Association Property;
Sixth: If additional monies are needed to satisfy the Special Tax A Requirement after the first five steps have been completed, then S pecial Tax A shall be levied Proportio nately on each Assessor’s Parcel of Taxable Public Property up to th e Maximum Special Tax A for Taxable Public Property.
Notwithstanding the above , under no ci rcumstances shall Special Tax A levied in any Fiscal Year on any Assessor’s Parcel of Single Fam ily Property or Other Residential Property for which an occupancy pe rmit for private residential use has been issued be increased as a result of de linquency or defa ult by the owner or own ers of any ot her Assessor’s Par cel or Assessor’ s Parcels within CFD N o. 64 by more than ten percent 554
City of Ontario CFD No. 64 15 February 13, 2023
above the amount that would have been levied in that Fiscal Year had there never been any such delinquencies or defaults.
2. Special Tax B
Each Fiscal Y ear, beginning with Fiscal Year 2 023-24, the CFD Administrator shall determine the Spec ial Ta x B Requirement. The Sp ecial Tax B shall then be levied Proportionately on each Assessor’s Parcel of Developed Property up t o 100% of the applicable Maximum Special Tax B for such Assessor’s P arcel, until the Special Tax B Requirement is satisfied. However, the Special Tax B levied in any Fiscal Year shall not increase by more than 4 .0% of the amount of the Special Tax B levied in the prior Fiscal Year.
E. EXEMPTIONS
In Tax Zone 1, no Special Tax shall be levied on up to 11.44 Acres of Public Property and up to 12.75 Acres of Prop erty Owner As sociation Property. In Tax Zone 2, no Special Tax shall be levied on up to 2.04 Acres of Public Property and up to 3.87 Acres of Property Owner Association Property. Tax -exempt status in each Tax Zone will be assigned by the CFD Administrator in the chronological order in which property becomes Public Property or Property Owner Association Property.
Property Ow ner A ssociation Property or Public Pro perty that is not exempt from the Special Tax A under this section shall be subject to the levy of Special Tax A and shall be taxed Proportionately as part of the fifth or sixth step, respectively, in Section D above, up to 100% of the applicabl e Maximum S pecial Tax A for Taxable Property Owner Association Property and Taxable Public Pr operty. No Special T ax A shall be levied in any Fisca l Year o n Assessor’s Parcels that have fully pr epaid the Special Tax A obligation pursuant to the formula set forth in Section H.
No Special Tax shall be levied on L ower Income Household Welfare Exempt ion Property; provided, however, that if, in an y Fiscal Year, applicable law does not require that Lo wer Income Household Welf are Exemption P roperty be exempt from some portion, or all, of the Special Tax, such portion, or all, of the Special Tax shall be levied on such property i n accordance with this Rate and Method of Ap portionment based on the Land Use Class to which the Assessor’s Parcel is assigned.
F. APPEALS
Any property owner may file a written app eal of the Sp ecial Tax with CFD No. 64 claiming that the amount or applica tion of the Special Tax is no t correct. The appeal must be filed not later tha n one calendar year af ter having paid the Special Tax that is disputed, and the appellant must be current in all payments of Special Taxes. I n addition, during the term of the appeal process, all Special Taxes levied must be paid on or before the payment date established when the levy was made.
555
City of Ontario CFD No. 64 16 February 13, 2023
The appeal must specify the reasons why the appellant claims the Special Tax is in error.
The CFD Administrator shall review the app eal, mee t w ith the appellant if the C FD Administrator deems necessary, and advise the appellant of its determination.
If the property o wner disagr ees with the CFD Administrator’s decision rela tive to the appeal, the owner may then file a written appeal with the City Council whose subsequent decision shall be final and binding on a ll interested parties. I f the decisi on of the CFD Administrator or subsequent decision by the City Council requires the Special Tax to be modified or c hanged in favor of the pr operty owner, then the CFD Administrator shall determine if sufficient Speci al Tax revenue is availab le to make a cas h refund. If a cash refund cann ot be made, then an adjustment shall be made t o credit future Special Ta x levy(ies).
This procedure shall be exclu sive and its e xhaustion by an y prope rty o wner s hall be a condition precedent to filing any legal action by such owner.
G. 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, however, that the Special Taxes may be collected in such other manner as the City Council shall determine, including direct billing of affected property owners.
H. PREPAYMENT OF SPECIAL TAX A
The following definitions apply to this Section H:
“CFD Public Facilities” means $25,593,000 for each Prepayment Period, or such lower number as determin ed by the City Council to be sufficient to fund the Facilities and Services to be provided by CFD No. 64.
“Expenditures Fund” means funds or accounts, regardless of the ir names, that are established to hold moneys that are available to acquire or construct Facilities and to fund Services.
“Future Facilities Costs” means the CFD Publ ic Facilities minus (i) Fac ilities and Services costs previously paid from the Expenditures Fund during the Prepayment Period in which the prepayment is being made , (ii) moneys currently on deposit i n the Expenditures Fund from deposits made during the Pre payment Period in which the prepayment is being made , and (ii i) moneys currently on deposit in an escrow fund that are expected to be avai lable to finance F acilities costs. In no event shall the amo unt of Future Facilities Costs be less than zero.
“Prepayment Period” means one of three periods of time during whic h a Speci al Tax prepayment may be made.
“Prepayment Period 1” means July 1, 2023, through June 30, 2057.
556
City of Ontario CFD No. 64 17 February 13, 2023
“Prepayment Period 2” means July 1, 2057, through June 30, 2090.
“Prepayment Period 3” means July 1, 2090, through June 30, 2124.
Only Special Tax A may be pr epaid; Spe cial Ta x B shall continue to be lev ied on an annual basis on all Developed Property in CFD No. 64.
1. Prepayment in Full
The obligation of an Assessor's Parcel to pay the Special Tax A may be prepaid as described herein, provided that a prepaym ent may be made only for Assessor’s Parcels for which a building permit for new construction was issued after January 1, 2023, and only if there are no delinquent Special Taxes with re spect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Special Tax A obligation shall p rovide the C FD Administrator with written notice o f intent to prepay. Within 30 days of receipt of such wr itten notice, the CFD Admin istrator shall notify such owner of the prepayment amount for such Assessor's Parce l. The CFD Ad ministrator may charge a fee for providing this service. Prepayment in any six month period must be made not less than 45 days prior to the next occ urring dat e that notice of redemption of Bo nds from t he proceeds of such prepayment may be gi ven to the Trustee pursuant to the Indenture.
The Special Tax A Prepayment Amount (defin ed below) shall be calculated as summarized below (capitalized terms as defined below):
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Total Prepayment Amount
As of the proposed date of pre payment, the Spec ial Tax A Prepayment Amount (defined below) shall be calculated by the CFD Administrator as follows:
Paragraph No.
1. Confirm that no Special T ax delinquencies apply to such Assessor’s Parcel , and determine the Prepayment Period for the proposed prepayment.
2. Compute the Assigned Special Tax A and Backup Special Tax A for the Assessor’s Parcel to be prepaid based on the Deve loped Property Special Tax A which is, or could be, charged in the current Fiscal Year. For Assessor’s Parcels of Final Mapped Property (for which a building permit has been issued but which is not yet classified as Developed Property) to be prepaid, com pute the Assigned 557
City of Ontario CFD No. 64 18 February 13, 2023
Special Tax A and Backup Special Tax A for that Assessor’s Parcel as though it was already design ated as Developed Property, based upon the building permit which has already been issued for that Assessor’s Parcel.
3. (a) Divide the Assigned Speci al Tax A computed pursuant to Paragraph 2 by the total estimated Assigned Special Tax A for CFD No. 64 based on the Developed Property Special Tax A which could be charged in t he current Fiscal Year on all expected development through buildout of CFD No. 64, excluding any Assessor’s Parcels which have been prepaid, and
(b) Divide the Backup Special Tax A computed pursuant to Paragraph 2 by the estimated total Backup S pecial Tax A at buildout of CFD No. 64, excluding any Assessor’s Parcels which have been prepaid.
4. Multiply the larg er quotient computed pursuant to Paragraph 3(a) or 3(b) by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the “Bond Redemption Amount”).
5. Multiply the Bond Redemption Amount computed pursuant to Paragraph 4 by the applicable redemption premium (e.g., the redemption price minus 100%), if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).
6. Compute the Future Facilities Costs for the applicable Prepayment Period.
7. Multiply the larger q uotient computed pur suant to Par agraph 3(a) or 3(b) by the amount determined pursuant to Paragraph 6 to compute the amount of Future Facilities Costs to be prepaid (the “Future Facilities Amount”).
8. Compute the amount needed to pay int erest o n the Bond Redem ption Amount from the first bond interest and/or principal payment date following the cur rent Fiscal Year until the earliest redemption date for the Outstanding Bonds.
9. Determine the Special Tax A levied on the Assessor’s Parcel in the current Fiscal Year which has not yet been paid.
10. Add the amounts computed pursuant to Parag raphs 8 a nd 9 to de termine the “Defeasance Amount”.
11. Verify the administrative fees and expenses of CFD No. 64, including the costs to compute the prepayment, the costs to invest the prepayment proceeds, the costs to redeem Bonds, and the costs to record any notices to evidence the prepayment and the redemption (the “Administrative Fees and Expenses”).
12. If reserve funds for the O utstanding Bonds, i f any, are at or above 100% of the reserve require ment (as defined in the Indenture) on the pre payment date, a reserve fun d credit shall be calculated as a reduction in t he applicable r eserve fund for the Outstan ding Bonds to be redeeme d pursuant to the pr epayment (the “Reserve Fund Credit ”). No Reserve Fund Credit shall be granted if reserve 558
City of Ontario CFD No. 64 19 February 13, 2023
funds are below 100% o f the rese rve requirement on the prepayment date or t he redemption date.
13. The Special Tax A prepayment is equal to the s um of th e amounts com puted pursuant to Paragraphs 4, 5, 7, 10, and 11, less the amount computed pursuant to Paragraph 12 (the “Prepayment Amount”).
14. From the Prepayment Amount, the am ounts computed pursuant to Paragraphs 4, 5, 10, and 12 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Outstanding Bonds or make debt service payments. The amount computed pursuant to Paragraph 7 sha ll be deposited into the Expenditures Fund. The amoun t computed pursuant to Paragraph 11 shall be retained by CFD No. 64.
The Special Tax A Prepayment Amount may be sufficient to redee m other than a $5 ,000 increment of Bonds. In such cases, the incremen t above $5,000, or i ntegral multiple thereof, w ill be retained in the a ppropriate fund estab lished under the Indenture to be used with the next prepayment of Bonds or to make debt service payments.
As a result of the payment of the current Fisca l Year’s Special Tax A levy as determined under Paragraph 9 (above), the CFD Administrator shall remove the current Fiscal Year’s Special Tax A levy for such Assessor’s Parcel from the County tax rolls. With respect to any Assessor's Parcel that is prepaid during Prepayment Period 3, the CFD Administrator shall cause a suitable notice to be r ecorded in c ompliance with the Act to indicate tha t Special Tax A has been prepaid and that the obligation of such Assessor's Parcel t o pay Special Tax A shall cease.
With resp ect to Special Tax A for any Assessor’s Parcel that is prepaid during Prepayment Period 1 or Prepayment Period 2, the obligation of such Assessor’s Parcel to pay Special Tax A shall be t olled, or suspend ed, through the end of such Prepayment Period, but shal l resume i n the first Fiscal Year of the subs equent Prepayment Period .
The CFD Administrator shall cause a suitable notice to be recorded in compliance wi th the Act to indicate that Special Tax A has been satis fied for the remainder of the applicable Prepayment Period but has not been permanently sa tisfied and the obligati on to pa y Special Ta x A will resume in the first Fiscal Ye ar of the Pr epayment Period following the Prepayment Peri od in which the prepayment was made. Once the obligation of an Assessor’s Parcel to pay Special Tax A resumes, Special Tax A for the then applicable Prepayment Period may be prepaid.
Notwithstanding the foregoing, no Special Tax A prepayment shall be allowed unless the amount of Maximum Special Tax A that may be levied on Taxable Property within CFD No. 64 (after exclu ding 13.48 Acres of Publ ic Prope rty and 16.62 acres of Property Owner Association Property) both prior to and after the proposed prepayment i s at least
1.1 times the maximum annual debt service on all Outstanding Bonds.
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City of Ontario CFD No. 64 20 February 13, 2023
2. Prepayment in Part
The Special T ax A on an Assessor’s Pa rcel fo r which a building permit for n ew construction was issued after January 1, 2023, may be partially prepaid. T he amount of the prepaymen t shall be calculated as in S ection H .1, excep t that a p artial prepayment shall be calculated by the CFD Administrator according to the following formula:
PP = (PF – AE) x % + AE.
The terms above have the following meaning:
PP = the partial prepayment
PF = the Prepayment Amount (full prepayment) for Special Tax A calculated according to Section H.1
AE = the Administrative Fees and Expenses determined pursuant to paragraph 11 above % = the percentage by which the owner of the Assesso r’s Parcel( s) is partially prepaying Special Tax A
The S pecial Tax A partial prepayment amount must be suff icient to redeem at leas t a $5,000 increment of Bonds.
The owner of any A ssessor’s Parcel who desires such prepayment shall notify t he CFD Administrator of su ch owner’s intent to partially prepay Speci al Tax A and the percentage by which Sp ecial Tax A shall be prepaid . T he CFD Administrator shall provide the owner with a state ment of the a mount required for the partial prepayment of Special Tax A for an Assessor’s Parcel within thirty (30 ) days of the req uest and may charge a fee for provid ing this service. With respect to any A ssessor’s Pa rcel t hat is partially prepaid, the C FD Administra tor shall (i) distribute the remitted prepayme nt funds according to Section H.1, and (ii) indicate in the records of CFD No. 64 that there has been a partial prepayment of Special Tax A and that a portion of Special Tax A with respect to such Assessor’s Parcel, equal to the outstanding percentage (100% - “%”, as defined above ) of the Maximum Special Tax A, shall continue to be levied on such Assessor’s Parcel pursuant to Section D during the Pre payment P eriod in w hich the partial prepayment is made.
For partial prepayments made during Prepayment Perio d 1 or Prepayme nt Period 2, the full amount of Special Tax A shall resum e in the f irst F iscal Year of the Pr epayment Period following the Pr epayment Period in w hich t he partial p repayment was made.
Once the obligation of an Assessor’s Parcel to pay Special Tax A resumes, Special Tax A for the then applicable Prepayment Period may be prepaid.
I. TERM OF SPECIAL TAX
The Fiscal Year after which no further Special Tax A shall be levied or collected is Fiscal Year 2123-2124, except that Special Tax A that was lawfully levie d in or bef ore such Fiscal Year and that remains delinquent may be collected in subsequent ye ars. Special Tax B shall co ntinue to b e levied indefinitely on an annual basis on all De veloped Property in CFD No. 64.
560
EXHIBIT A
CERTIFICATE OF MODIFICATION OF SPECIAL TAX A
(PAGE 1 OF 3)
CITY OF ONTARIO AND CFD NO. 64 CERTIFICATE
1. Pursuant to S ection C.1 of the Rate a nd Method of Apportionment of Special Tax (the “Rate and Method” ) for City of Ontario Comm unity Facilities District No. 64 (Sunset Ranch) (“CFD No. 64”), the Assigned Special Tax A and the Backup Special Tax A for Developed Property within CFD No. 64 has been modified.
a. The inform ation in Table s 1 and 2 relating to As signed Special Tax A for Developed Property within CFD No. 64, as stated in Section C.1.a.2 of the Rate and Method of Apportionment, has been modified as follows:
TABLE 1
TAX ZONE 1
ASSIGNED SPECIAL TAX A – DEVELOPED PROPERTY
Land
Use
Class
Description
Residential
Floor Area
(Square
Footage)
Assigned
Special Tax A
1 Single Family Property < 1,101 $[ ] per Unit
2 Single Family Property 1,101 – 1,300 $[ ] per Unit 3 Single Family Property 1,301 – 1,500 $[ ] per Unit 4 Single Family Property 1,501 – 1,700 $[ ] per Unit 5 Single Family Property 1,701 – 1,900 $[ ] per Unit 6 Single Family Property 1,901 – 2,100 $[ ] per Unit 7 Single Family Property 2,101 – 2,300 $[ ] per Unit 8 Single Family Property 2,301 – 2,500 $[ ] per Unit 9 Single Family Property 2,501 – 2,700 $[ ] per Unit 10 Single Family Property 2,701 – 2,900 $[ ] per Unit 11 Single Family Property > 2,900 $[ ] per Unit
12 Other Residential Property $[ ] per Acre
13 Non-Residential Property $[ ] per Acre
561
EXHIBIT A
CERTIFICATE OF MODIFICATION OF SPECIAL TAX A
(PAGE 2 OF 3)
T
ABLE 2
TAX ZONE 2
ASSIGNED SPECIAL TAX A – DEVELOPED PROPERTY
b. The Backup S pecial Tax for Devel oped Property, as stated in Section C.1.a. 3, shall be modified as follows:
The Backup Special Tax A shall be $[___] per Unit for Single Family Property in Tax Zone 1 and $[ ___] in Tax Zone 2.
However, if the Expe cted Residential Lot Count of Single Family Property does not equal 432 in Tax Zone 1 and 36 in Tax Zone 2, and the City has not issued Bonds, then the Backup Special Tax A for Designate d Buildable Lot s of Si ngle Family Property in each Tax Zone shall be calculated according to the following formulas:
Tax Zone 1 = $[_____] ÷ Expected Residential Lot
Count in Tax Zone 1 for Single
Family Property
Tax Zone 2 = $[_____] ÷ Expected Residential Lot
Count in Tax Zone 2 for Single
Family Property
Land
Use
Class
Description
Residential
Floor Area
(Square
Footage)
Assigned
Special Tax A
14 Single Family Property < 2,301 $[ ] per Unit
15 Single Family Property 2,301 – 2,500 $[ ] per Unit 16 Single Family Property 2,501 – 2,700 $[ ] per Unit 17 Single Family Property 2,701 – 2,900 $[ ] per Unit 18 Single Family Property > 2,900 $[ ] per Unit
19 Other Residential Property $[ ] per Acre
20 Non-Residential Property $[ ] per Acre
562
EXHIBIT A
CERTIFICATE OF MODIFICATION OF SPECIAL TAX A
(PAGE 3 OF 3)
2. The Spe cial Tax A for Develope d Pr operty may only be modif ied prior to the first issuance of CFD No. 64 Bonds.
3. Upon execution of this certificat e by CFD No. 64, CFD No. 64 shall cause an amended notice of Special Tax lien for CFD No. 64 to be recorded reflecting the modifications set forth herein.
Capitalized u ndefined terms used herein hav e the meanings ascribed thereto in the Rate and Method. The modifications set forth in thi s Cert ificate have been calculated by the CFD Administrator in accordance with the Rate and Method.
GOODWIN CONSULTING GROUP, INC.
CFD ADMINISTRATOR
By:_________________________________ Date:______________________
The undersigned acknowledges receipt of this Certificate and of the modification of the Assigned Special Tax A and Backup Special Tax A for Developed Property as set forth in this Certificate.
CITY OF ONTARIO
COMMUNITY FACILITIES DISTRICT NO. 64
(SUNSET RANCH)
By:_________________________________ Date:______________________
563
RESOLUTION NO. _____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO,
CALIFORNIA, DEEMING IT NECESSARY TO INCUR BONDED
INDEBTEDNESS WITHIN THE CITY OF ONTARIO COMMUNITY
FACILITIES DISTRICT NO. 64 (SUNSET RANCH).
WHEREAS, on March 7, 2023, the City Council (the “City Council”) of the City of Ontario (the “City”), pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), adopted a resolution entitled “A Resolution of the City Council of the City of Ontario, California, of Intention to Establish a Community Facilities District, Proposed to be Named City of Ontario Community Facilities District No. 64 (Sunset Ranch), and to Authorize the Levy of a Special Tax” stating its intention to establish City of Ontario Community Facilities District No. 64 (Sunset Ranch) (the “Community Facilities District”) and to authorize the levy of a special tax (the “Special Tax”) within the Community Facilities District to finance certain public facilities and services; and
WHEREAS, on March 7, 2023, the City Council also adopted a resolution entitled “A Resolution of the City Council of the City of Ontario, California, to Incur Bonded Indebtedness of the Proposed City of Ontario Community Facilities District No. 64 (Sunset Ranch)” (the “Resolution to Incur Bonded Indebtedness”) declaring the necessity for incurring bonded indebtedness and setting the date for a public hearing to be held on the proposed debt issue; and
WHEREAS, pursuant to the Resolution to Incur Bonded Indebtedness, notice of said public hearing was published in the Inland Valley Daily Bulletin , a newspaper of general circulation published in the area of the Community Facilities District, in accordance with the Act; and
WHEREAS, on this date, the City Council opened, conducted and closed said public hearing; and
WHEREAS, at said public hearing, any person interested, including persons owning property within the area and desiring to appear and present any matters material to the questions set forth in the Resolution to Incur Bonded Indebtedness appeared and presented such matters; and
WHEREAS, oral or written protests against the proposed debt issue were not made or filed at or before said public hearing by 50% or more of the registered voters, or six registered voters, whichever is more, residing within the territory proposed to be included in the Community Facilities District, or the owners of one-half or more of the area of land in the territory proposed to be included in the Community Facilities District and not exempt from the Special Tax; and
564
WHEREAS, on this date, the City Council adopted a resolution entitled “A Resolution of the City Council of the City of Ontario, California, of Formation of the City of Ontario Community Facilities District No. 64 (Sunset Ranch), Authorizing the Levy of a Special Tax within the Community Facilities District and Establishing an Appropriations Limit for the Community Facilities District” (the “Resolution of Formation”); and WHEREAS, the City Clerk of the City (the “City Clerk”) is the election official that will conduct the special election on the proposition to incur bonded indebtedness for the Community Facilities District; and
WHEREAS, there has been filed with the City Clerk a letter from the Registrar of Voters of the County of San Bernardino indicating that no persons were registered to vote within the territory of the proposed Community Facilities District as of March 15, 2023, which demonstrates that 12 or more persons have not been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close of said public hearing; and
WHEREAS, there has been filed with the City Clerk consents and waivers of all of the landowners of record in the Community Facilities District waiving any time limit specified by Section 53326 of the Act and any requirement pertaining to the conduct of said special election, including any time limit or requirement applicable to an election pursuant to Article 5 of the Act (commencing with Section 53345 of the Act), consenting to the holding of said special election on April 18, 2023, and waiving any impartial analysis, arguments or rebuttals, as set forth in Sections 53326 and 53327 of the Act; and WHEREAS, the City Clerk has concurred in said waivers and has concurred in holding said special election on April 18, 2023.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ontario as follows:
SECTION 1. The foregoing recitals are true and correct.
SECTION 2. The City Council deems it necessary to incur the bonded indebtedness.
SECTION 3. The bonded indebtedness will be incurred for the purpose of financing the costs of the Facilities (as defined in the Resolution of Formation), including all costs and estimated costs incidental to, or connected with, the accomplishment of such purpose.
SECTION 4. In accordance with the previous determination of the City Council, the whole of the Community Facilities District will pay for the bonded indebtedness.
SECTION 5. The maximum aggregate amount of debt to be incurred is $85,000,000.
565
SECTION 6. The maximum term the bonds to be issued shall run before maturity is 40 years.
SECTION 7. The maximum annual rate of interest to be paid shall not exceed the maximum interest rate permitted by applicable law at the time of sale of the bonds, payable semiannually or at such times as the City Council or its designee shall determine, the actual rate or rates and times of payment of such interest to be determined by the City Council or its designee at the time or times of sale of the bonds.
SECTION 8. The proposition to incur the bonded indebtedness shall be submitted to the voters.
SECTION 9. The City Council hereby finds and determines that no persons were registered to vote within the territory of the proposed Community Facilities District as of March 15, 2023, and that 12 or more persons have not been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close of the public hearings held by the City Council on the proposed debt issue for the Community Facilities District. Accordingly, pursuant to Section 53326 of the Act, the vote shall be by the landowners of the Community Facilities District and each person who is the owner of land as of the close of said public hearings, or the authorized representative thereof, shall have one vote for each acre or portion of an acre that he or she owns within the Community Facilities District not exempt from the Special Tax.
SECTION 10. The City Council hereby finds and determines that the qualified electors of the Community Facilities District have unanimously consented (a) to the waiver of any time limit specified by Section 53326 of the Act and any requirement pertaining to the conduct of said election, including any time limit or requirement applicable to an election pursuant to Article 5 of the Act (commencing with Section 53345 of the Act), and (b) to the holding of said election on April 18, 2023. The City Council hereby finds and determines that the City Clerk has concurred in said waivers and has concurred in holding said election on April 18, 2023.
SECTION 11. The date of the special community facilities district election (which shall be consolidated with the special district election to levy the Special Tax within the Community Facilities District) at which time the proposition shall be submitted to the voters is April 18, 2023.
SECTION 12. The election is to be conducted by mail ballot. The mailed ballots are required to be received in the office of the City Clerk no later than 7:30 p.m. on April 18, 2023; provided, however, that if all of the qualified electors have voted prior to such time, the election may be closed with the concurrence of the City Clerk.
SECTION 13. All actions heretofore taken by the officers, employees and agents of the City with respect to the incurrence of bonded indebtedness, or in connection with or related to any of the matters referred to herein, are hereby approved, confirmed and ratified.
566
SECTION 14. The officers, employees and agents of the City are hereby authorized and directed to take all actions and do all things that they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof.
SECTION 15. This Resolution shall take effect immediately upon its adoption.
The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED this 18th day of April 2023.
PAUL S. LEON, MAYOR
ATTEST:
SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
BEST BEST & KRIEGER LLP
CITY ATTORNEY
567
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO )
CITY OF ONTARIO )
I, SHEILA MAUTZ, City Clerk of the City of Ontario, DO HEREBY CERTIFY that foregoing Resolution No. 2023- was duly passed and adopted by the City Council of the City of Ontario at their regular meeting held April 18, 2023 by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
____________________________________
SHEILA MAUTZ, CITY CLERK
(SEAL)
The foregoing is the original of Resolution No. 2023- duly passed and adopted by the Ontario City Council at their regular meeting held April 18, 2023. _____________________________________
SHEILA MAUTZ, CITY CLERK
(SEAL)
568
RESOLUTION NO. _____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO,
CALIFORNIA, CALLING SPECIAL ELECTION FOR CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 64 (SUNSET RANCH).
WHEREAS, on this date, the City Council (the “City Council”) of the City of Ontario (the “City”), pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), adopted a resolution entitled “A Resolution of the City Council of the City of Ontario, California, of Formation of the City of Ontario Community Facilities District No. 64 (Sunset Ranch), Authorizing the Levy of a Special Tax within the Community Facilities District and Establishing an Appropriations Limit for the Community Facilities District” (the “Resolution of Formation”), establishing City of Ontario Community Facilities District No. 64 (Sunset Ranch) (the “Community Facilities District”), authorizing the levy of a special tax (the “Special Tax”) within the Community Facilities District and establishing an appropriations limit of $85,000,000 for the Community Facilities District; and WHEREAS, on this date, the City Council also adopted a resolution entitled “A Resolution of the City Council of the City of Ontario, California, Deeming it Necessary to Incur Bonded Indebtedness within the City of Ontario Community Facilities District No. 64 (Sunset Ranch)” (the “Resolution Deeming it Necessary to Incur”), deeming it necessary to incur bonded indebtedness in the maximum amount of $85,000,000; and WHEREAS, pursuant to the provisions of said resolutions, the propositions to incur such bonded indebtedness, to levy the Special Tax within the Community Facilities District and to establish an appropriations limit for the Community Facilities District are to be submitted to the qualified electors of the Community Facilities District as required by the Act; and
WHEREAS, the City Council desires to designate the City Clerk of the City (the “City Clerk”) as the election official for the special election provided for herein; and WHEREAS, there has been filed with the City Clerk a letter from the Registrar of Voters of the County of San Bernardino indicating that no persons were registered to vote within the territory of the proposed Community Facilities District as of March 15, 2023, which demonstrates that 12 or more persons have not been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close of the public hearings on the establishment of the Community Facilities District and the proposed debt issue for the Community Facilities District; and WHEREAS, there has been filed with the City Clerk consents and waivers of all of the landowners of record in the Community Facilities District waiving any time limit specified by Section 53326 of the Act and any requirement pertaining to the conduct of said special election, including any time limit or requirement applicable to an election pursuant to Article 5 of the Act (commencing with Section 53345 of the Act), consenting to the holding of said special election on April 18, 2023 and waiving any impartial analysis, arguments or rebuttals, as set forth in Sections 53326 and 53327 of the Act; and 569
WHEREAS, the City Clerk has concurred in said waivers and has concurred in holding said special election on April 18, 2023.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ontario as follows:
SECTION 1. The foregoing recitals are true and correct.
SECTION 2. Pursuant to Sections 53351, 53326 and 53325.7 of the Act, the propositions to incur such bonded indebtedness, to levy the Special Tax within the Community Facilities District and to establish such appropriations limit for the Community Facilities District shall be submitted to the qualified electors of the Community Facilities District at an election called therefor as provided below.
SECTION 3. The City Clerk is hereby designated as the official to conduct said election.
SECTION 4. As authorized by Section 53353.5 of the Act, the propositions to incur such bonded indebtedness, to levy the Special Tax within the Community Facilities District and to establish such appropriations limit for the Community Facilities District shall be combined into one ballot proposition.
SECTION 5. The City Council hereby finds and determines that no persons were registered to vote within the territory of the proposed Community Facilities District as of March 15, 2023, and that 12 or more persons have not been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close of the public hearings heretofore held by the City Council on the establishment of the Community Facilities District and the proposed debt issue for the Community Facilities District. Accordingly, pursuant to Section 53326 of the Act, the vote shall be by the landowners of the Community Facilities District and each person who is the owner of land as of the close of said public hearings, or the authorized representative thereof, shall have one vote for each acre or portion of an acre that he or she owns within the Community Facilities District not exempt from the Special Tax.
SECTION 6. The City Council hereby finds and determines that the qualified electors of the Community Facilities District have unanimously consented (a) to the waiver of any time limit specified by Section 53326 of the Act and any requirement pertaining to the conduct of said election, including any time limit or requirement applicable to an election pursuant to Article 5 of the Act (commencing with Section 53345 of the Act), (b) to the holding of said election on April 18, 2023, and (c) to the waiver of any impartial analysis, arguments or rebuttals, as set forth in Sections 53326 and 53327 of the Act. The City Council herby finds and determines that the City Clerk has concurred in said waivers and has concurred in holding said election on April 18, 2023.
SECTION 7. The City Council hereby calls a special election to submit to the qualified electors of the Community Facilities District the combined proposition to incur bonded indebtedness in an amount not to exceed $85,000,000, to levy the Special Tax within the Community Facilities District and to establish an appropriations limit of the 570
Community Facilities District in the amount of $85,000,000, which election shall be held at 303 East B Street, Ontario, California, on April 18, 2023, provided, that, in the event the April 18, 2023 City Council meeting is held via teleconference and/or videoconference only, the means by which the public may observe such public hearings and offer public comment would be as prescribed in the notice and agenda for such City Council meeting.
The City Council has caused to be provided to the City Clerk, as the official to conduct said election, the Resolution of Formation, the Resolution of Deeming it Necessary to Incur, a certified map of sufficient scale and clarity to show the boundaries of the Community Facilities District, and a sufficient description to allow the City Clerk to determine the boundaries of the Community Facilities District.
The voted ballots shall be returned to the City Clerk not later than 7:30 p.m. on April 18, 2023; provided, however, that if all of the qualified electors have voted prior to such time, the election may be closed with the concurrence of the City Clerk.
SECTION 8. Pursuant to Section 53326 of the Act, the election shall be conducted by mail or hand-delivered ballot pursuant to Section 4000 et. seq. of the California Elections Code. Except as otherwise provided in the Act, the provisions of law regulating elections of the City, insofar as they may be applicable, will govern the election.
SECTION 9. The form of the ballot for said election is attached hereto as Exhibit A and by this reference incorporated herein, and such form of ballot is hereby approved. The City Clerk shall cause to be delivered to each of the qualified electors of the Community Facilities District a ballot in said form. Each ballot shall indicate the number of votes to be voted by the respective landowner to which it pertains.
Each ballot shall be accompanied by all supplies and written instructions necessary for the use and return of the ballot. The identification envelope for return of the ballot shall be enclosed with the ballot, shall have the return postage prepaid, and shall contain: (a) the name and address of the landowner, (b) a declaration, under penalty of perjury, stating that the voter is the owner of record or the authorized representative of the landowner entitled to vote and is the person whose name appears on the identification envelope, (c) the printed name, signature and address of the voter, (d) the date of signing and place of execution of the declaration described in clause (b) above, and (e) a notice that the envelope contains an official ballot and is to be opened only by the canvassing board.
Analysis and arguments with respect to the ballot proposition are hereby waived, as provided in Section 53327 of the Act.
SECTION 10. The City Clerk shall accept the ballots of the qualified electors in the office of the City Clerk at 303 East B Street, Ontario, California, to and including 7:30 p.m. on April 18, 2023, whether said ballots be personally delivered or received by mail. The City Clerk shall have available ballots which may be marked at said location on the election day by said qualified electors.
571
SECTION 11. The City Council hereby determines that the facilities and services financed by the Community Facilities District are necessary to meet increased demands placed upon local agencies as a result of development occurring in the Community Facilities District.
SECTION 12. The specific purposes of the bonded indebtedness proposed to be incurred is the financing of the Facilities (as defined in the Resolution of Formation), including all costs and estimated costs incidental to, or connected with, the accomplishment of such purpose, and the proceeds of such bonded indebtedness shall be applied only to such specific purposes.
Upon approval of the proposition to incur bonded indebtedness, and the sale of any bonds evidencing such indebtedness, the City Council shall take such action as may be necessary to cause to be established an account for deposit of the proceeds of sale of the bonds. For so long as any proceeds of the bonds remain unexpended, the Management Analyst, Financial Services of the City shall cause to be filed with the City Council, no later than January 1 of each year, a report stating (a) the amount of bond proceeds received and expended during the preceding year, and (b) the status of any project funded or to be funded from bond proceeds. Said report may relate to the calendar year, fiscal year, or other appropriate annual period, as the Management Analyst, Financial Services of the City shall determine, and may be incorporated into the annual budget, audit, or other appropriate routine report to the City Council.
SECTION 13. All actions heretofore taken by the officers, employees and agents of the City with respect to the special election called for herein, or in connection with or related to any of the matters referred to herein, are hereby approved, confirmed and ratified.
SECTION 14. The officers, employees and agents of the City are hereby authorized and directed to take all actions and do all things that they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof.
SECTION 15. This Resolution shall take effect immediately upon its adoption.
The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED this 18th day of April 2023. _____________________________________
PAUL S. LEON, MAYOR
572
ATTEST:
____________________________________
SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
____________________________________
BEST BEST & KRIEGER LLP
CITY ATTORNEY
573
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO )
CITY OF ONTARIO )
I, SHEILA MAUTZ, City Clerk of the City of Ontario, DO HEREBY CERTIFY that foregoing Resolution No. 2023- was duly passed and adopted by the City Council of the City of Ontario at their regular meeting held April 18, 2023 by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
____________________________________
SHEILA MAUTZ, CITY CLERK
(SEAL)
The foregoing is the original of Resolution No. 2023- duly passed and adopted by the Ontario City Council at their regular meeting held April 18, 2023. _____________________________________
SHEILA MAUTZ, CITY CLERK
(SEAL)
574
EXHIBIT A
OFFICIAL BALLOT
CITY OF ONTARIO
April 18, 2023
SPECIAL ELECTION
This ballot is for a special, landowner election. The number of votes to be voted pursuant to this ballot is ____.
INSTRUCTIONS TO VOTERS:
To vote on the measure, mark a cross (+ or X) in the voting square after the word “YES” or after the word “NO”. All distinguishing marks or erasures are forbidden and make the ballot void. If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of Ontario and obtain another.
CITY OF ONTARIO
COMMUNITY FACILITIES DISTRICT NO. 64
(SUNSET RANCH)
MEASURE SUBMITTED TO VOTE OF VOTERS: Shall
the City of Ontario Community Facilities District No. 64 (Sunset Ranch) (the “Community Facilities District”) be authorized to incur bonded indebtedness in a maximum aggregate amount of not to exceed $85,000,000 and levy a special tax in order to finance certain facilities and services and shall the annual appropriations limit of the Community Facilities District be established in the amount of $85,000,000, all as specified in the Resolution entitled “A Resolution of the City Council of the City of Ontario, California, of Formation of the City of Ontario Community Facilities District No. 64 (Sunset Ranch), Authorizing the Levy of a Special Tax within the Community Facilities District and Establishing an Appropriations Limit for the Community Facilities District” and the Resolution entitled “A Resolution of the City Council of the City of Ontario, California, Deeming it Necessary to Incur Bonded Indebtedness within the City of Ontario Community Facilities District No. 64 (Sunset Ranch),” each adopted by the City Council of the City of Ontario on April 18, 2023?
Yes:
No:
575
RESOLUTION NO. _____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO,
CALIFORNIA, DECLARING RESULTS OF SPECIAL ELECTION AND
DIRECTING RECORDING OF NOTICE OF SPECIAL TAX LIEN.
WHEREAS, on April 18, 2023, the City Council (the “City Council”) of the City of Ontario (the “City”), pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), adopted a resolution entitled “A Resolution of the City Council of the City of Ontario, California, Calling Special Election for City of Ontario Community Facilities District No. 64 (Sunset Ranch)” (the “Resolution Calling Election”), calling for a special election of the qualified electors within City of Ontario Community Facilities District No. 64 (Sunset Ranch) (the “Community Facilities District”); and
WHEREAS, pursuant to the terms of the Resolution Calling Election and the provisions of the Act, the special election was held on April 18, 2023; and WHEREAS, the City Clerk of the City (the “City Clerk”) has certified the canvass of the returns of the election and has filed a Canvass and Statement of Results of Election (the “Canvass”), a copy of which is attached hereto as Exhibit A.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ontario as follows:
SECTION 1. The foregoing recitals are true and correct.
SECTION 2. The City Council has received, reviewed and hereby accepts the Canvass.
SECTION 3. The City Council hereby finds and declares that the ballot proposition submitted to the qualified electors of the Community Facilities District pursuant to the Resolution Calling Election has been passed and approved by such electors in accordance with Section 53328, Section 53355 and Section 53325.7 of the Act.
SECTION 4. The City Clerk is hereby directed to execute and cause to be recorded in the office of the County Recorder of the County of San Bernardino a notice of special tax lien in the form required by the Act, said recording to occur no later than fifteen days following adoption by the City Council of this Resolution.
SECTION 5. All actions heretofore taken by the officers, employees and agents of the City with respect to the special election, or in connection with or related to any of the matters referred to herein, are hereby approved, confirmed and ratified.
SECTION 6. The officers, employees and agents of the City are hereby authorized and directed to take all actions and do all things that they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof.
576
SECTION 7. This Resolution shall take effect immediately upon its adoption.
The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED this 18th day of April 2023. _____________________________________
PAUL S. LEON, MAYOR
ATTEST:
____________________________________
SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
____________________________________
BEST BEST & KRIEGER LLP
CITY ATTORNEY
577
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO )
CITY OF ONTARIO )
I, SHEILA MAUTZ, City Clerk of the City of Ontario, DO HEREBY CERTIFY that foregoing Resolution No. 2023- was duly passed and adopted by the City Council of the City of Ontario at their regular meeting held April 18, 2023 by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
____________________________________
SHEILA MAUTZ, CITY CLERK
(SEAL)
The foregoing is the original of Resolution No. 2023- duly passed and adopted by the Ontario City Council at their regular meeting held April 18, 2023. _____________________________________
SHEILA MAUTZ, CITY CLERK
(SEAL)
578
EXHIBIT A
CITY OF ONTARIO
COMMUNITY FACILITIES DISTRICT NO. 64
(SUNSET RANCH)
CANVASS AND STATEMENT OF RESULTS OF ELECTION
I hereby certify that on April 18, 2023, I canvassed the returns of the special election held on April 18, 2023, for the City of Ontario Community Facilities District No. 64 (Sunset Ranch), that the total number of ballots cast in said Community Facilities District and the total number of votes cast for and against the proposition are as follows and that the totals as shown for and against the proposition are true and correct:
Qualified
Landowner
Votes
Votes
Cast YES NO
City of Ontario Community Facilities
District No. 64 (Sunset Ranch)
Special Election, April 18, 2023
61 ___ ___ ___
MEASURE SUBMITTED TO VOTE OF VOTERS: Shall the City of Ontario Community Facilities District No. 64 (Sunset Ranch) (the “Community Facilities District”) be authorized to incur bonded indebtedness in a maximum aggregate amount of not to exceed $85,000,000 and levy a special tax in order to finance certain facilities and services and shall the annual appropriations limit of the Community Facilities District be established in the amount of $85,000,000, all as specified in the Resolution entitled “A Resolution of the City Council of the City of Ontario, California, of Formation of the City of Ontario Community Facilities District No. 64 (Sunset Ranch), Authorizing the Levy of a Special Tax within the Community Facilities District and Establishing an Appropriations Limit for the Community Facilities District” and the Resolution entitled “A Resolution of the City Council of the City of Ontario, California, Deeming it Necessary to Incur Bonded Indebtedness within the City of Ontario Community Facilities District No. 64 (Sunset Ranch),” each adopted by the City Council of the City of Ontario on April 18, 2023? IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND this 18 th day of April 2023.
BY:
SHEILA MAUTZ, CITY CLERK
579
ORDINANCE NO. _____
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO,
CALIFORNIA, LEVYING A SPECIAL TAX WITHIN THE CITY OF
ONTARIO COMMUNITY FACILITIES DISTRICT NO. 64 (SUNSET
RANCH).
WHEREAS, on March 7, 2023, the City Council (the “City Council”) of the City of Ontario (the “City”), pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), adopted a resolution entitled “A Resolution of the City Council of the City of Ontario, California, of Intention to Establish a Community Facilities District, Proposed to be Named City of Ontario Community Facilities District No. 64 (Sunset Ranch), and to Authorize the Levy of a Special Tax” stating its intention to establish City of Ontario Community Facilities District No. 64 (Sunset Ranch) (the “Community Facilities District”), to authorize the levy of a special tax (the “Special Tax”) within the Community Facilities District and to finance certain public facilities (the “Facilities”) and services (the “Services”); and WHEREAS, on April 18, 2023, the City Council held a noticed public hearing on the establishment of the Community Facilities District, as required by the Act; and WHEREAS, subsequent to the close of said hearing, the City Council adopted resolutions entitled “A Resolution of the City Council of the City of Ontario, California, of Formation of the City of Ontario Community Facilities District No. 64 (Sunset Ranch), Authorizing the Levy of a Special Tax within the Community Facilities District and Establishing an Appropriations Limit for the Community Facilities District” (the “Resolution of Formation”), “A Resolution of the City Council of the City of Ontario, California, Deeming it Necessary to Incur Bonded Indebtedness within the City of Ontario Community Facilities District No. 64 (Sunset Ranch)” and “A Resolution of the City Council of the City of Ontario, California, Calling Special Election for City of Ontario Community Facilities District No. 64 (Sunset Ranch),” which resolutions established the Community Facilities District, authorized the levy of the Special Tax within the Community Facilities District and called an election within the Community Facilities District on the proposition of incurring indebtedness, levying the Special Tax within the Community Facilities District and establishing an appropriations limit for the Community Facilities District, respectively; and
WHEREAS, on April 18, 2023, an election was held in which the qualified electors of the Community Facilities District approved said proposition by more than the two-thirds vote required by the Act.
THE CITY COUNCIL OF THE CITY OF ONTARIO DOES ORDAIN AS FOLLOWS:
SECTION 1. The City Council hereby authorizes and levies the Special Tax within the Community Facilities District pursuant to Sections 53328 and 53340 of the Act, at the rate and in accordance with the method of apportionment set forth in Exhibit B to the Resolution of Formation (the “Rate and Method of Apportionment”). The Special Tax is hereby levied commencing in fiscal year 2023-24 and in each fiscal year thereafter until 580
the last fiscal year in which such Special Tax is authorized to be levied pursuant to the Rate and Method of Apportionment.
SECTION 2. The City Council may, in accordance with subdivision (b) of Section 53340 of the Act, provide, by resolution, for the levy of the Special Tax in future tax years at the same rate or at a lower rate than the rate provided by this Ordinance. In no event shall the Special Tax be levied on any parcel within the Community Facilities District in excess of the maximum tax specified therefor in the Rate and Method of Apportionment.
SECTION 3. The Special Tax shall be levied on all of the parcels in the Community Facilities District, unless exempted by law or by the Rate and Method of Apportionment.
SECTION 4. The proceeds of the Special Tax shall only be used to pay, in whole or in part, the cost of providing the Facilities and Services and incidental expenses pursuant to the Act.
SECTION 5. The Special Tax shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in the case of delinquency as is provided for ad valorem taxes, unless another procedure is adopted by the City Council.
SECTION 6. If for any reason any portion of this Ordinance is found to be invalid, or if the Special Tax is found inapplicable to any particular parcel within the Community Facilities District, by a court of competent jurisdiction, the balance of this Ordinance and the application of the Special Tax to the remaining parcels within the Community Facilities District shall not be affected.
SECTION 7. The Mayor shall sign this Ordinance and the City Clerk shall certify as to the adoption and shall cause a summary thereof to be published at least once, in a newspaper of general circulation in the City of Ontario, California within fifteen (15) days of the adoption. The City Clerk shall post a certified copy of this ordinance, including the vote for and against the same, in the Office of the City Clerk, in accordance with Government Code Section 36933.
The City Clerk of the City of Ontario shall certify as to the adoption of this Ordinance.
PASSED, APPROVED, AND ADOPTED this ________ day of _________ 2023. _____________________________________
PAUL S. LEON, MAYOR
581
ATTEST:
_________________________________
SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
_______________________________
BEST BEST & KRIEGER LLP
CITY ATTORNEY
582
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO )
CITY OF ONTARIO )
I, SHEILA MAUTZ, City Clerk of the City of Ontario, DO HEREBY CERTIFY that foregoing Ordinance No. _______ was duly introduced at a regular meeting of the City Council of the City of Ontario held April 18, 2023 and adopted at the regular meeting held ___________, 2023 by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
_________________________________
SHEILA MAUTZ, CITY CLERK
(SEAL)
I hereby certify that the foregoing is the original of Ordinance No. _______ duly passed and adopted by the Ontario City Council at their regular meeting held ____________ and that Summaries of the Ordinance were published on ___________ and _____________, in the Inland Valley Daily Bulletin newspaper.
__________________________________
SHEILA MAUTZ, CITY CLERK
(SEAL)
583
RESOLUTION NO. _____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO,
CALIFORNIA, AUTHORIZING THE EXECUTION AND DELIVERY OF
AN ACQUISITION AND FUNDING AGREEMENT WITH KB HOME
COASTAL INC.
WHEREAS, certain real property within the boundaries of the City located generally south of State Route 60 is commonly known as the New Model Colony; and WHEREAS, the City has approved a General Plan Amendment for the New Model Colony, which has been supplemented by certain water, recycled water and sewer master plans (as so supplemented, the “General Plan Amendment”) and has certified an Environmental Impact Report and adopted a Mitigated Negative Declaration in connection with the General Plan Amendment (together, the “Environmental Impact Report”); and
WHEREAS, the City has specified in the General Plan Amendment and the Environmental Impact Report the major backbone transportation, water, sewer, storm drainage, parks, public safety infrastructure and fiber optic systems required to serve the New Model Colony; and
WHEREAS, the New Model Colony is now commonly referred to as Ontario Ranch; and
WHEREAS, KB HOME Coastal Inc., a California corporation (“KB HOME”), is developing certain of the property within Ontario Ranch (the “Property”); and WHEREAS, certain of such major backbone infrastructure is required to serve the Property; and
WHEREAS, the City and KB HOME desire to provide a mechanism to fund, in a timely manner, the costs of certain of such major backbone infrastructure required to serve Ontario Ranch (the “Facilities”) so that such development may occur; and WHEREAS, in order to provide such a mechanism, the City has, pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982 (the “Act”), established City of Ontario Community Facilities District No. 64 (Sunset Ranch) (the “Community Facilities District”), the boundaries of which include the Property; and WHEREAS, the Community Facilities District is authorized to levy a special tax (the “Special Tax”) within the Community Facilities District and issue special tax bonds (the “Bonds”) secured by the Special Tax in order to finance certain of the Facilities; and
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WHEREAS, it is anticipated that the Special Tax will be levied by the Community Facilities District and that, from time to time, Bonds will be issued by the Community Facilities District; and
WHEREAS, KB HOME proposes to construct, or cause to be constructed, certain of the Facilities proposed to be financed by the Community Facilities District pursuant to the Act, and the City proposes to purchase such Facilities from KB HOME pursuant to an Acquisition and Funding Agreement by and between the City and KB HOME (such Acquisition and Funding Agreement, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the “Acquisition Agreement”); and WHEREAS, the City Council is the legislative body of the Community Facilities District.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ontario as follows:
SECTION 1. The Acquisition Agreement, in substantially the form submitted to this meeting and made a part hereof as though set forth herein, be and the same is hereby approved. Each of the Mayor of the City, and such other member of the City Council as the Mayor may designate, the City Manager of the City and the Executive Director of Finance of the City, and such other officer or employee of the City as the City Manager may designate (the “Authorized Officers”) is hereby authorized, and any one of the Authorized Officers is hereby directed, for and in the name of the City, to execute and deliver the Acquisition Agreement in the form submitted to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Acquisition Agreement by such Authorized Officer.
SECTION 2. All actions heretofore taken by the officers, employees and agents of the City with respect to the Acquisition Agreement, or in connection with or related to any of the matters referred to herein, are hereby approved, confirmed and ratified.
SECTION 3. The officers, employees and agents of the City are hereby authorized and directed to take all actions and do all things that they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof.
SECTION 4. This Resolution shall take effect immediately upon its adoption.
The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED this 18th day of April 2023. 585
_____________________________________
PAUL S. LEON, MAYOR
ATTEST:
____________________________________
SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
____________________________________
BEST BEST & KRIEGER LLP
CITY ATTORNEY
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STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO )
CITY OF ONTARIO )
I, SHEILA MAUTZ, City Clerk of the City of Ontario, DO HEREBY CERTIFY that foregoing Resolution No. 2023- was duly passed and adopted by the City Council of the City of Ontario at their regular meeting held April 18, 2023 by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
____________________________________
SHEILA MAUTZ, CITY CLERK
(SEAL)
The foregoing is the original of Resolution No. 2023- duly passed and adopted by the Ontario City Council at their regular meeting held April 18, 2023. _____________________________________
SHEILA MAUTZ, CITY CLERK
(SEAL)
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