Susana Alcala Wood, City Attorney Jorge Oseguera, City Auditor Mindy Cuppy, City Clerk Howard Chan, City Manager John Colville, City Treasurer City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-00041 February 1, 2022 Consent Item 10
Title: (Pass for Publication) Adopt a Resolution of Change for the Delta Shores Community Facilities District No. 2019-01 (Improvements); and Pass for Publication an Ordinance to Repeal Ordinance No. 2019-0036 and to Levy Special Taxes
Location: Districts 7 and 8
Recommendation: Adopt a Resolution enacting changes to the Rates and Methods of Apportionment (RMA) of Special Taxes, changes to the appropriations limits, and change the authorized amounts of bonded indebtedness in and for the improvement areas designated in the Delta Shores Community Facilities District No. 2019-01 (Improvements) (CFD), as approved by the qualified electors (Resolution of Change); Review an ordinance to repeal Ordinance No. 2019-0036 and to levy a special tax on land within the CFD; and Pass for publication the ordinance title required by City Charter section 32(c), with the ordinance to be adopted on February 8, 2022.
Contact: Arwen Wacht, Senior Development Project Manager, (916) 808-7535, [email protected]
; Sheri Smith, Special Districts Manager, (916) 808-7204, [email protected], Department of Finance
Presenter: None.
Attachments:
01-Description/Analysis
02-Background
03-Schedule of Proceedings
04-Amended and Restated RMA for IA-1
05-Amended and Restated RMA for IA-2
06-Amended and Restated RMA for IA-3
07-Resolution of Change
08-Ordinance
File ID: 2021-00041 Consent Item 10
February 1, 2022
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City of Sacramento
Description/Analysis
Issue Detail: On January 18, 2022, Council adopted Resolution Nos. 2022-0023. 2022-0024 and 2022-0025 calling for special mailed ballot elections within the boundaries of IA-1, IA-2 and IA-3, respectively, on whether to:
Amend and restate the RMA, change the authorized amount of bonded indebtedness, and change the appropriations limit for each of the three improvement areas. The authorized amount of bonded indebtedness and appropriations limit will be changed for IA-1 from $8.0 million to $17.0 million, for IA-2 from $18.8 million to $18.0 million, and for IA-3 from $39.6 million to $63.0 million.
The special mailed ballot election was held on January 25, 2022, and all votes received were in the affirmative. Therefore, Staff recommends that Council adopt the attached Resolution of Change that will enact the changes to each of the improvement areas outlined above. In addition, staff recommends Council pass for publication an ordinance repealing and replacing the original ordinance levying special taxes (Ordinance No. 2019-0036) within the CFD that will incorporate the amendments to the RMAs for IA-1, IA-2, and IA-3 as approved by the qualified electors of each of the improvement areas.
Policy Considerations: Modifying the RMAs for each of the three improvement areas will allow special tax bonds to be issued earlier in the development process and will increase the amount of special tax proceeds available for the acquisition of eligible facilities.
Economic Impacts: Not applicable.
Environmental Considerations:
California Environmental Quality Act (CEQA): Under CEQA Guidelines, modifying the RMA of a CFD (a CFD being a financing mechanism) or of a designated improvement area therein without commitment to any specific projects which could result in a significant impact to the environment does not constitute a project for purposes of CEQA and is therefore exempt from review [14 Cal. Code Regs. §15378(b)(4)].
Sustainability: Not applicable.
Commission/Committee Action: None.
File ID: 2021-00041 Consent Item 10
February 1, 2022
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City of Sacramento
Rationale for Recommendation: The recommended actions are required by the Mello-Roos Community Facilities Act of 1982 to implement the changes approved by the qualified electors of each of the three improvement areas of the CFD.
Financial Considerations: There are currently no financial impacts to any City funds. It is anticipated that special tax bonds will be issued in the future to finance the acquisition and construction of certain public improvements, and those bonds will be secured solely by the levy of special taxes within each improvement area pursuant to the amended and restated RMA for each improvement area. At this time, bonds have not been issued and no special taxes have been levied in any of the improvement areas of the CFD.
Local Business Enterprise (LBE): Not applicable.
ATTACHMENT 2
BACKGROUND
The CFD currently covers approximately 535± acres of property within the Delta Shores Planned Unit Development. The Delta Shores project is proposed for single-family, multi-family, commercial, mixed-use, parks, open space, detention basins, schools, a community center, and a fire station. The Delta Shores project area is generally bounded by Freeport Boulevard to the west, the Sacramento Regional Wastewater Treatment Plant to the south and east, the Stone-Boswell property and the Sacramento Job Corps Center to the east, and Meadowview Road to the north.
Bond information
As approved by Council, the CFD will finance, through the issuance of Mello-Roos special tax bonds or the incurrence of other debt for IA-1, IA-2 and IA-3, certain public improvements authorized for the CFD. On September 24, 2019, Council adopted Resolutions Nos. 2019-0372, 2019-0373, and 2019-0374 deeming it necessary to incur bonded indebtedness to finance the acquisition and construction of certain public facilities in each improvement area of the CFD. The aggregate principal amount of debt proposed to be issued, in one or more series on behalf of IA-1, IA-2, and IA-3 of the CFD, may not exceed $8.0 million for IA-1, $18.8 million for IA-2 and $39.6 million for IA-3. The proposed modifications for IA-1 and IA-3 will increase certain maximum special tax rates under the RMAs and increase the total amount of debt authorized to be issued in IA-1 and IA-3, increasing the maximum authorization for IA-1 from $8.0 million to $17.0 million and for IA-3 from $39.6 million to $63.0 million. The proposed modifications for IA-2 will change land use designations under the RMA and decrease the total amount of debt authorized to be issued in IA-2 from $18.8 million to $18.0 million. The costs and improvements eligible for CFD financing do not change.
Process to Make Changes to the Improvement Areas
The process to modify the RMAs, the authorized amounts of bonded indebtedness and the appropriations limits for IA-1, IA-2, and IA-3 began with M&H Realty Partners VI LP (the “Landowner”) requesting the modifications and was followed by Council’s adoption of a “Resolution of Consideration” calling for a public hearing where all interested persons have the opportunity to protest the proposed modifications. A public hearing was held on January 18, 2022, after which Council adopted resolutions calling a special election on the modifications for each of the improvement areas (Resolution Nos. 2022- 0023, 2022-0024 and 2022-0025). The proposed modifications relating to each improvement area of the CFD were submitted to the “qualified electors” of that improvement area at a special election and all votes received were in the affirmative.
Council can therefore adopt the attached Resolution of Change to enact the proposed
changes to the improvement areas. The final step in the process will be to repeal the previously approved ordinance (Ordinance No. 2019-0036) and approve a new ordinance that will incorporate the amendments to the RMAs for each improvement area, if so approved.
A proposed Schedule of Proceedings, outlining the timeline for this process, is included in Attachment 3 to this report.
ATTACHMENT 3
SCHEDULE OF PROCEEDINGS
DELTA SHORES COMMUNITY FACILITIES DISTRICT NO. 2019-01
(IMPROVEMENTS)
CHANGE PROCEEDINGS
December 14, 2021 Adopted Resolution of Consideration
Set date for Public Hearing
December 31, 2021 Notice of Public Hearing Mailed to Property Owners
January 4, 2022 Revised Notice of Public Hearing Mailed to Property Owners
January 7, 2022 Notice of Public Hearing Published
January 18, 2022 Public Hearing Held
Adopted Resolutions Calling Special Mailed Ballot Elections
January 25, 2022 Special Election Ballots Due
February 1, 2022 Adopt Resolution of Change
Pass for Publication Ordinance Repealing Ordinance
No. 2019-0036 and Levying Special Taxes for Fiscal Year 2021-2022 and Following Fiscal Years
February 8, 2022 Adopt Ordinance
EXHIBIT A
DELTA SHORES COMMUNITY FACILITIES DISTRICT NO. 2019-01
(IMPROVEMENTS), CITY OF SACRAMENTO, COUNTY OF SACRAMENTO, STATE
OF CALIFORNIA
AMENDED AND RESTATED
RATE, METHOD OF APPORTIONMENT,
AND MANNER OF COLLECTION OF SPECIAL TAX
IMPROVEMENT AREA NO. 1
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 1 Page 1
AMENDED AND RESTATED
RATE AND METHOD OF APPORTIONMENT FOR
DELTA SHORES COMMUNITY FACILITIES DISTRICT NO. 2019-01 (IMPROVEMENTS)
CITY OF SACRAMENTO
COUNTY OF SACRAMENTO
STATE OF CALIFORNIA
IMPROVEMENT AREA NO. 1
A Special Tax as hereinafter defined shall be levied on each Assessor's Parcel of Taxable Property within Improvement Area No. 1 of the Delta Shores Community Facilities District No. 2019-01 (Improvements), City of Sacramento, County of Sacramento, State of California and collected each Fiscal Year commencing no earlier than Fiscal Year 2021-2022 in an amount determined through the application of the procedures described below. All of the real property within Improvement Area No. 1, unless exempted by law or 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 meaning:
“Acre or Acreage” means the land area of an Assessor’s Parcel as shown on County records, such as on an Assessor’s Parcel Map and/or in the Assessor’s Data, 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, record of survey, or other recorded document creating or describing the parcel or calculated using available spatial data and GIS, all as determined by the CFD Administrator. The square footage of an Assessor’s Parcel is equal to the Acreage of such parcel multiplied by 43,560. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. “Accessory Dwelling Unit” means a secondary residential unit of limited size, as defined in California Government Code Section 65852.2 and/or meeting the criteria outlined in Sacramento City Code Section 17.228.105, as may be amended from time-to-time. “Administrative Expenses” means the actual or reasonably estimated costs directly related to the administration of Improvement Area No. 1 including, but not limited to, the following: the costs of computing the Special Tax and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Tax (whether by the County, the City, or otherwise); the costs of remitting the Special Tax 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 costs to the City, Improvement Area No. 1, or any designee thereof of complying with arbitrage rebate requirements or responding to questions from the IRS pertaining to any Bonds or any audit of any Bonds by the IRS; the costs to the City, Improvement Area No. 1, or any designee thereof of providing continuing disclosure regarding the Bonds pursuant to applicable state or federal securities law; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries
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Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 1 Page 2 regarding the Special Tax; the costs of the City, Improvement Area No. 1, or any designee thereof related to any appeal of the levy or application of the Special Tax; and the costs associated with the release of funds from an escrow account, if any. Administrative Expenses shall also include amounts estimated or advanced by the City, or Improvement Area No. 1 for any other administrative purposes, including, but not limited to, attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of any delinquent installment of the Special Tax. “Airspace Parcel” means a property with an assigned Assessor’s Parcel number that constitutes vertical space on an underlying land Parcel.
“Assessor’s Data” means the property characteristic data compiled and maintained by the County Assessor for each Assessor’s Parcel, including, but not limited to, Assessor’s Parcel Number, Use Code, and Units.
“Assessor’s Parcel” or “Parcel” means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel number.
“Assessor’s Parcel Map” means an official map of the County Assessor designating parcels by an Assessor’s Parcel number.
“Assigned Special Tax” means the Special Tax for each Land Use Class of Developed Property, as determined in accordance with Section C.1.a., or the Special Tax for each Land Use Class of Final Subdivision Property, as determined in accordance with Section C.1.b. “Authorized Facilities” means the public facilities authorized to be financed, in whole or in part, by Bonds or Special Tax revenue dedicated to Pay-As-You-Go Expenditures for Improvement Area No. 1. “Backup Special Tax” means the Backup Special Tax amount set forth in Section C.1.c. “Bonds” means any bonds or other debt (as defined in the Act), whether in one or more series, issued or incurred for Improvement Area No. 1 under the Act to fund the Authorized Facilities. “Bond Year” means a one-year period beginning on September 2 nd in each year and ending on
September 1st in the following year, unless defined differently in the applicable Indenture. “Boundary Map” means that map recorded with the County Recorder’s office on August 23, 2019, in Book 129 at Page 9 as Document Number 201908230413.
“CFD Administrator” means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Tax. “CFD” means Delta Shores Community Facilities District No. 2019-01 (Improvements), City of Sacramento, County of Sacramento, State of California.
“City” means the City of Sacramento.
“Council” means the City Council of the City, acting as legislative body with respect to the CFD as contemplated by the Act.
“County” means the County of Sacramento.
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 1 Page 3 “County Assessor” means the County of Sacramento, Office of the Assessor. “Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit has been issued prior to June 1st preceding the Fiscal Year in which the Special Tax is being levied. “Exempt Property” means all Assessor’s Parcels that are exempt from the Special Tax pursuant to Section E.
“Expected Revenue” means the expected Special Tax revenue from Developed Property within Improvement Area No. 1, as shown on the attached Exhibit 1. “Expected Units” means the expected number of Units on Developed Property within Improvement Area No. 1, as shown on the attached Exhibit 1.
“Final Subdivision” means a subdivision of property created by recordation of a final subdivision map, parcel map or lot line adjustment, approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code Section 1352, that creates individual lots for which residential building permits may be issued without further subdivision of such property. “Final Subdivision Property” means, in any Fiscal Year, all property for which a Final Subdivision was recorded prior to June 1
st of the preceding Fiscal Year and which has not yet become Developed Property.
“Fiscal Year” means the period starting July 1st and ending on the following June 30th. “GIS”, or geographic information system, means a system designed to capture, store, manipulate, analyze, manage, and present spatial or geographic data. “High-Density Residential Property” means, in any Fiscal Year, all Assessor’s Parcels of Developed Property with a density of 15 or greater Units per Acre. The assignment of the High-Density Residential Property Land Use Class to an Assessor’s Parcel shall be based upon reference to Exhibit 2 to this RMA showing the Villages within Improvement Area No. 1 designated as “HDR” or similar. “Improvement Area” means any of the three improvement areas shown on the Boundary Map of the CFD.
“Improvement Area No. 1” means Improvement Area No. 1 of the Delta Shores Community Facilities District No. 2019-01 (Improvements), City of Sacramento, County of Sacramento, State of California. “Indenture” means the indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Class” means any of the classes listed in Table 1 and Table 2. “Low-Density Residential Property” means, in any Fiscal Year, all Assessor’s Parcels of Developed Property with a density of 7 or fewer Units per Acre. The assignment of the Low-Density Residential Property Land Use Class to an Assessor’s Parcel shall be based upon reference to Exhibit 2 to this RMA showing the Villages within Improvement Area No. 1 designated as “LDR” or similar.
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Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 1 Page 4 “Maximum Special Tax” means the maximum annual Special Tax, determined in accordance with the provisions of Section C, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
“Medium-Density Residential Property” means, in any Fiscal Year, all Assessor’s Parcels of Developed Property with a density of 8-14 Units per Acre. The assignment of the Medium-Density Residential Property Land Use Class to an Assessor’s Parcel shall be based upon reference to Exhibit 2 to this RMA showing the Villages within Improvement Area No. 1 designated as “MDR” or similar. “Minimum Taxable Acreage” means 80.59 Acres for Improvement Area No. 1. “Mixed-Use Residential Property” means, in any Fiscal Year, all Assessor’s Parcels of Developed Property containing structures that have a mixture of residential and non-residential uses. The non- residential portions of the Parcel are not subject to the Special Tax. The assignment of the Mixed-Use Residential Property to an Assessor’s Parcel shall be based upon reference to Exhibit 2 to this RMA showing the Villages within Improvement Area No. 1 designated as “MU” or similar. “Non-Residential Property” means, in any Fiscal Year, all Assessor’s Parcels of Developed Property not classified as Low-Density Residential Property, Medium-Density Residential Property, High- Density Residential Property, or Mixed-Use Residential Property. “Open Space Property” means property within the boundaries of Improvement Area No. 1 which (a) has been designated with specific boundaries and Acreage on a Final Subdivision map as open space, a park, detention basin, or wetland restoration, (b) is classified by the County Assessor as open space, a park, detention basin, or wetland restoration, (c) has been irrevocably offered for dedication as open space, a park, detention basin, or wetland restoration to the federal government, the State of California, the County, the City, or any other public agency or nonprofit holding a conservation easement, or (d) is encumbered by an easement or other restriction required by the City limiting the use of such property to open space, a park, detention basin, or wetland restoration. “Outstanding Bonds” mean all Bonds, which remain outstanding as defined in the Indenture pursuant to which such Bonds were issued.
“Pay-As-You-Go Expenditure” means Special Tax revenue which is used or set aside for Authorized Facilities, including for Authorized Facilities to be constructed or acquired by the CFD. Pay-As-You-Go Expenditures may be included in the Special Tax Requirement until all Authorized Facilities have been constructed or acquired.
“Property Owner Association Property” means any property within the boundaries of Improvement Area No. 1 which is (a) owned by a property owner association or (b) designated with specific boundaries and Acreage on a Final Subdivision map as property owner association property. As used in this definition, a property owner association includes any master or sub-association. “Proportionately” means for Developed Property that the ratio of the Special Tax levy to the Assigned Special Tax or the Backup Special Tax is equal for all Assessor’s Parcels of Developed Property within Improvement Area No. 1. For Final Subdivision Property, Taxable Contingent Property, Tentative Map Property, or Undeveloped Property, “Proportionately” means that the ratio of the actual Special Tax
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 1 Page 5 levy per Acre to the Maximum Annual Special Tax per Acre is equal for all Assessor’s Parcels of Final Subdivision Property, Taxable Contingent Property, Tentative Map Property, or Undeveloped Property within Improvement Area No. 1.
“Public Property” means any property within the boundaries of Improvement Area No. 1 which (a) is owned by a public agency, (b) has been irrevocably offered for dedication to a public agency, or (c) is designated with specific boundaries and Acreage on a Final Subdivision map as property which will be owned by a public agency. For purposes of this definition, a public agency includes the federal government, the State, the County, the City or any other public agency, including school districts and public utilities.
“RMA” means this Amended and Restated Rate and Method of Apportionment of Special Tax, which may be amended from time-to-time.
“Special Tax” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax Requirement. “Special Tax Requirement” means that amount of Special Tax revenue required in any Fiscal Year for Improvement Area No. 1 to: (i) pay Administrative Expenses; (ii) pay annual debt service on all Outstanding Bonds due in the Bond Year beginning in such Fiscal Year; (iii) pay other periodic costs on Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on Outstanding Bonds; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds in accordance with the Indenture, to the extent not included in a computation of the Special Tax Requirement for a previous Fiscal Year; (v) to the extent permitted by the Act, pay for reasonably anticipated delinquent installments of the Special Tax based on the delinquency rate for the Special Tax levied in the previous Fiscal Year; and (vi) account for Pay-As-You-Go Expenditures for the Authorized Facilities; less (vii) a credit for funds available to reduce the annual Special Tax levy as determined by the CFD Administrator pursuant to the Indenture. “State” means the State of California.
“Taxable Contingent Property” means any Assessor’s Parcel of Non-Residential Property, Open Space Property, Property Owner Association Property, Public Property, or other property that would otherwise be classified as Exempt Property pursuant to the provisions of Section E, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property located within Improvement Area No. 1 below the Minimum Taxable Acreage for Improvement Area No. 1.
“Taxable Property” means all of the Assessor’s Parcels within the boundaries of Improvement Area No. 1 that are not exempt from the Special Tax pursuant to law or Section E below. “Tentative Map” means a map that is made for the purpose of showing the design of a proposed subdivision, including the individual lots that are expected within the subdivision, as well as the conditions pertaining thereto. A Tentative Map is not based on a detailed survey of the property within the map and is not recorded with the County recorder’s office to create legal lots. “Tentative Map Property” means, in any Fiscal Year, all Parcels which are included within a Tentative
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 1 Page 6 Map that was approved prior to June 1 of the prior Fiscal Year. “Trustee” means the financial institution appointed pursuant to an Indenture to act as the trustee, fiscal agent, or paying agent or a combination thereof to administer a series of Bonds for and on behalf of Improvement Area No. 1 and the City under such Indenture. “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Final Subdivision Property, Taxable Contingent Property, or Tentative Map Property. “Unit” means an individual residential living space. The number of Units assigned to each Assessor’s Parcel may be determined by (i) referencing Assessor’s Data, (ii) site surveys and physical unit counts, and/or (iii) reviewing City building permit data. An Accessory Dwelling Unit shall not be considered a Unit for the purposes of the Special Tax.
“Use Code” means the six-digit use code assigned by the County Assessor to each Assessor’s Parcel. “Village” means an area, as shown on Exhibit 2 to the RMA, proposed for residential development for Low-Density Residential Property, Medium-Density Residential Property, High-Density Residential Property, or Mixed-Use Residential Property.
“Welfare Exempt Property” means any Parcel within the boundaries of Improvement Area No. 1 that is exempt from the Special Tax pursuant to Section 53340 (c) of the Act because the Parcel has received a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code.
During any time that Bonds are outstanding, property that was not classified as Welfare Exempt Property prior to the issuance of Bonds and was subject to the Special Tax prior to receiving the welfare exemption may no longer be categorized as Welfare Exempt Property regardless of whether the Assessor’s Parcel has been granted a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code by the County.
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, all Assessor’s Parcels of Taxable Property within Improvement Area No. 1 shall be (a) classified as Developed Property, Final Subdivision Property, Taxable Contingent Property, Tentative Map Property, or Undeveloped Property and (b) shall be subject to the levy of the annual Special Tax determined pursuant to Section C below.
C. MAXIMUM SPECIAL TAX RATE
1. Developed Property and Final Subdivision Property
The Maximum Special Tax for each Assessor’s Parcel of Developed Property and Final Subdivision Property shall be the greater of (1) the Assigned Special Tax described in Section C.1.a and C.1.b or (2) the Backup Special Tax computed pursuant to Section C.1.c.
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Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 1 Page 7 a. Assigned Special Tax for Developed Property
The Assigned Special Tax for each Assessor’s Parcel of Developed Property is shown in Table
1. TABLE 1
Assigned Special Tax for Developed Property
(Fiscal Year 2021-2022)
Land Use
Class Description
Assigned
Special Tax
1 Low-Density Residential Property $2,168 per Unit
2 Medium-Density Residential Property $1,745 per Unit
3 High-Density Residential Property $250 per Unit
4 Mixed-Use Residential Property $250 per Unit
5 Non-Residential Property $0
b. Assigned Special Tax for Final Subdivision Property
The Assigned Special Tax for each Assessor’s Parcel of Final Subdivision Property is shown in Table 2.
TABLE 2
Assigned Special Tax for Final Subdivision Property
(Fiscal Year 2021-2022)
Land Use
Class Description
Assigned
Special Tax
1 Low-Density Residential Property $2,168 per Parcel
2 Medium-Density Residential Property $1,745 per Parcel 3 High-Density Residential Property $250 per Unit 1
4 Mixed-Use Residential Property $250 per Unit 1
5 Non-Residential Property $0
1 Per Unit expected on each Parcel of Final Subdivision Property.
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Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 1 Page 8 c. Backup Special Tax (Fiscal Year 2021-2022)
The Backup Special Tax per Village for each Assessor’s Parcel of Developed Property and Final Subdivision Property, is calculated as follows:
Backup Special Tax = Expected Revenue / Units on Developed Property and/or Units expected on Final Subdivision Property
For each Village, by reference to Exhibit 1, should the number of Units be less than the Expected Units when all Assessor’s Parcels are classified as Developed Property, the Backup Special Tax per Unit shall be adjusted so that the Backup Special Tax per Unit is sufficient to generate the Expected Revenue in any Fiscal Year. The CFD Administrator shall update Exhibit 1 with the revised Units and Expected Revenue to be derived from each Village.
Notwithstanding the foregoing, once an Assessor’s Parcel is used for private residential purposes (as determined by the Act), the Backup Special Tax for the Assessor’s Parcel cannot be increased because of future reductions in the number of Units on other Assessor’s Parcels.
The increases to the Backup Special Tax pursuant to Section C.1.e below would still apply to such Assessor’s Parcel.
d. Changes to Land Use Class
Prior to a bond sale, if a Land Use Class change is proposed or identified that will result in a change in the Expected Revenues, no action will be needed pursuant to this Section. Each Fiscal Year, the CFD Administrator shall update Exhibit 1 to show the revised Units and Expected Revenues if a Land Use Class change has been approved.
After a Bond sale, if a Land Use Class change is proposed or identified, the following must be applied:
If the revenues calculated are higher than those reflected in Exhibit 1 or less than those calculated in Exhibit 1, but the reduction in Expected Revenues does not reduce debt service coverage below the required 110% debt service coverage, no further action is needed, and the CFD Administrator shall update Exhibit 1 to show the revised Expected Revenues.
If the revenues calculated are less than those reflected in Exhibit 1, and the CFD Administrator determines that the reduction in Expected Revenues would reduce debt service coverage below the required 110% debt service coverage the Special Tax levied on the Parcel subject to a Land Use Class change will need to be paid and one of the following shall occur: (i) The landowner requesting the Land Use Class change may make a prepayment in an amount that will ensure that the reduced Expected Revenues are sufficient to meet the required 110% debt service coverage or (ii) If a prepayment is not selected, the Assigned Special Tax on the Parcel or Parcels subject to the Land Use Class change shall be increased proportionately until the Expected Revenues are sufficient to maintain the required 110% debt service coverage. Notwithstanding the foregoing, once an Assessor’s Parcel is used for private residential purposes (as determined pursuant to
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Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 1 Page 9 the Act), the Maximum Special Tax for the Assessor’s Parcel cannot be increased because of future Land Use Class changes for other Assessor’s Parcels. e. Increase in the Assigned Special Tax and Backup Special Tax On each July 1, commencing on July 1, 2022, the Assigned Special Tax and the Backup Special Tax for Developed Property and Final Subdivision Property shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.
2. Taxable Contingent Property, Tentative Map Property, and Undeveloped Property a. Maximum Special Tax
The Maximum Special Tax for each Assessor’s Parcel of Taxable Contingent Property, Tentative Map Property, and Undeveloped Property shall be $9,705 per Acre in Fiscal Year 2021-2022.
b. Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2022, the Maximum Special Tax for Taxable Contingent Property, Tentative Map Property, and Undeveloped Property shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing no earlier than Fiscal Year 2021-2022 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement, and shall levy the Special Tax until the amount of the Special Tax equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows:
First: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property at a rate up to 100% of the greater of the applicable Assigned Special Tax or the applicable Backup Special Tax to satisfy the Special Tax Requirement.
Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on all Final Subdivision Property at a rate up to 100% of the greater of the applicable Assigned Special Tax or the applicable Backup Special Tax for Final Subdivision Property.
Third: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on all Tentative Map Property at a rate up to 100% of the Maximum Special Tax for Tentative Map Property.
Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the first three steps have been completed, the Special Tax shall be levied Proportionately on all Undeveloped Property at a rate up to 100% of the Maximum Special Tax for Undeveloped Property Fifth: If additional monies are needed to satisfy the Special Tax Requirement after the first four steps have been completed, then the Special Tax shall be levied Proportionately on all Taxable Contingent Property at a rate up to 100% of the Maximum Special Tax for Taxable Contingent Property.
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 1 Page 10 Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor’s Parcel of Developed Property used for private residential purposes (as determined pursuant to the Act) in any Fiscal Year be increased as a consequence of the delinquency or default in the payment of the Special Tax by the owner or owners of any other Taxable Property by more than ten percent above the amount that would have been levied against such Assessor’s Parcel in such Fiscal Year had there been no delinquencies or defaults.
E. EXEMPTIONS
1. No Special Tax shall be levied on up to 20.10 Acres of Non-Residential Property, Open Space Property, Property Owner Association Property, and Public Property. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which property becomes Non- Residential Property, Open Space Property, Property Owner Association Property, or Public Property.
2. For the following property types in excess of the 20.10 Acres exempted above, Non-Residential Property, Open Space Property, Property Owner Association Property, or Public Property that is not exempt from the Special Tax under this section, or pursuant to the Act, shall be classified as Taxable Contingent Property. Taxable Contingent Property shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the fifth step in Section D above, at up to 100% of the applicable Maximum Special Tax for Taxable Contingent Property.
3. No Special Tax shall be levied on Welfare Exempt Property. If a Parcel is no longer eligible to be classified as Welfare Exempt Property that would make such Assessor’s Parcel eligible to continue to be classified as Exempt Property, such Assessor's Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property. Any property that is granted a welfare exemption when any Bonds are outstanding and was subject to the Special Tax prior to receiving the welfare exemption shall not be considered Welfare Exempt Property.
4. The Special Tax for any Developed Property, which would change classification to Public Property upon its transfer or dedication to a public agency, shall continue to be subject to the levy of the Special Tax as Developed Property.
5. If the use of an Assessor's Parcel changes so that such Assessor's Parcel is no longer eligible to be classified as one of the uses set forth in Section E.1. above that would make such Assessor's Parcel eligible to continue to be classified as Exempt Property, such Assessor's Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property.
6. If an Assessor’s Parcel designated as Low-Density Residential Property, Medium-Density Residential Property, High-Density Residential Property, or Mixed-Use Residential Property changes to Non-Residential Property, the Special Tax shall continue to be levied on such Non- Residential Property as if the Assessor’s Parcel was still classified as Low-Density Residential Property, Medium-Density Residential Property, High-Density Residential Property, or Mixed-Use Residential Property.
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 1 Page 11 F. SPECIAL TAX APPEALS
Any property owner may file a written appeal of the Special Tax with the CFD Administrator claiming that the amount or application of the Special Tax is not correct. The appeal must be filed not later than one calendar year after having paid the Special Tax that is disputed, and the appellant must be current in all payments of the Special Tax. In addition, during the term of the appeal process, any Special Tax levied must be paid on or before the payment date established when the levy was made.
The appeal must specify the reasons why the appellant claims the amount of the Special Tax is not correct. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination.
If the property owner disagrees with the CFD Administrator’s decision relative to the appeal, the owner may then file a written appeal with the Council whose subsequent decision shall be final and binding on all interested parties. If the decision of the CFD Administrator or subsequent decision by the Council requires the Special Tax to be modified or changed in favor of the property owner, no cash refund shall be made for the prior years’ Special Tax, but an adjustment shall be made to credit future Special Tax levies.
G. INTERPRETATIONS
The City may, by resolution or ordinance, interpret, clarify and/or revise this RMA to correct any inconsistency, vagueness, or ambiguity as it relates to the Special Tax, method of apportionment, classification of Parcels, or any definition used herein, as long as such correction does not materially affect the levy and collection of the Special Tax. In addition, the interpretation and application of any section of this document shall be at the City’s discretion.
H. MANNER OF COLLECTION
The annual Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the CFD Administrator may, at the sole discretion of the City, directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner as necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on Assessor's Parcels of Taxable Property that are delinquent in the payment of the Special Tax.
I. PREPAYMENT OF SPECIAL TAX OBLIGATION
The following definitions apply to this Section I:
“CFD Public Facilities” means those public facilities authorized to be financed by Improvement Area No. 1.
“CFD Public Facilities Costs” means either $10,772,449 in costs for completed facilities/land dedications in 2021 dollars; plus $2,404,252 in costs for pending facilities/land dedications in 2021 dollars, which shall increase by the Construction Cost Index on July 1, 2022, and on each July 1 thereafter, or such lower number as shall be determined either by (a) the CFD Administrator as
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 1 Page 12 sufficient to finance the CFD Public Facilities, or (b) the Council concurrently with a covenant that it will not issue any more Bonds to be secured by Special Taxes levied under this RMA. “Construction Cost Index” means the annual percentage change in the Engineering News-Record Construction Cost Index for the City of San Francisco, measured as of June in the previous Fiscal Year.
In the event this index ceases to be published, the Construction Cost Index shall be another index as determined by the CFD Administrator that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of San Francisco.
“Construction Fund” means an account specifically identified in the Indenture to hold funds which are currently available for expenditure to acquire or construct the CFD Public Facilities. “Future Facilities Costs” means the CFD Public Facilities Costs minus the portion of the CFD Public Facilities Costs previously funded from (a) proceeds of all previously issued Bonds, (b) interest earnings on the Construction Fund actually earned prior to the date of prepayment and (c) proceeds of the Special Tax dedicated to Pay-As-You-Go Expenditures. In no case, shall the Future Facilities Costs be less than zero.
“Outstanding Bonds” means all previously issued Bonds which will remain outstanding after the first principal payment date following the then current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Tax obligations.
1. Prepayment in Full
The Special Tax obligation of an Assessor's Parcel of Developed Property, Final Subdivision Property, Taxable Contingent Property, Tentative Map Property, or Undeveloped Property may be prepaid and permanently satisfied as described herein; provided that there are no delinquent installments of the Special Tax with respect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Special Tax obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 45 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount of such Assessor's Parcel.
Prepayment must be made not less than 75 days prior to the next occurring date that notice of redemption of Bonds from the proceeds of such prepayment may be given to the Trustee pursuant to the Indenture. The CFD Administrator may charge a fee for providing this service.
The Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below):
Bond Redemption Amount
plus Future Facilities Amount
plus Redemption Premium
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
Total: equals Prepayment Amount
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 1 Page 13 As of the proposed date of prepayment, the Prepayment Amount (defined below) shall be calculated as follows:
Step Number:
1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.
2. For Assessor’s Parcels of Developed Property other than Non-Residential Property, compute the Assigned Special Tax and Backup Special Tax. For Assessor’s Parcels of Final Subdivision Property, Tentative Map Property, and Undeveloped Property to be prepaid, compute the Assigned Special Tax and Backup Special Tax for that Assessor’s Parcel as though it was already designated as Developed Property, based upon the number of Expected Units to be developed on that Assessor’s Parcel.
3. a. Divide the Assigned Special Tax computed pursuant to Step 2 by the total estimated Assigned Special Tax for Improvement Area No. 1 based on the Developed Property Special Tax which could be charged in the current Fiscal Year on all Expected Units through buildout of Improvement Area No. 1, excluding any Assessor’s Parcels which have prepaid the Special Tax obligation in full pursuant to Section I.1.
b. Divide the Backup Special Tax computed pursuant to Step 2 by the total estimated Backup Special Tax for Improvement Area No. 1 based on the Developed Property Special Tax which could be charged in the current Fiscal Year on all Expected Units through buildout of Improvement Area No. 1, excluding any Assessor’s Parcels which have prepaid the Special Tax obligation in full pursuant to Section I.1.
4. Multiply the larger quotient computed pursuant to Step 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. Compute the current Future Facilities Costs.
6. Multiply the larger quotient computed pursuant to Step 3.a or 3.b by the total Future Facilities Costs to compute the amount of the Future Facilities Amount to be retired and prepaid (the “Future Facilities Amount”).
7. Multiply the Bond Redemption Amount computed pursuant to Step 4 by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “ Redemption Premium”).
8. Compute the amount needed to pay interest on the Bond Redemption Amount on the earliest redemption date for the Outstanding Bonds.
9. Compute the amount the Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount less the Future Facilities Amount and the Administrative Fees and Expenses from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment.
10. Subtract the amount computed pursuant to Step 9 from the amount computed pursuant to
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 1 Page 14 Step 8 (the “Defeasance Amount”).
11. Verify the administrative fees and expenses, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming the Outstanding Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the “Administrative Fees and Expenses”).
12. A reserve fund credit (the “ Reserve Fund Credit”) shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero.
13. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the larger quotient computed pursuant to Steps 3.a or 3.b by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the “Capitalized Interest Credit”).
14. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to Steps 4, 6, 7, 10 and 11, less the amount computed pursuant to Steps 12 and 13 (the “ Prepayment Amount”).
15. From the Prepayment Amount, the amounts computed pursuant to Steps 4, 7, 10, and 13 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Outstanding Bonds and make debt service payments. The amount computed pursuant to Step 6 shall be deposited into the Construction Fund. The amount computed pursuant to Step 11 shall be retained by the City for the payment of Administrative Fees and Expenses.
The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such cases, the increment amount that is not $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of bonds or to make debt service payments.
Any current-year Special Tax that has been placed on the County tax roll will remain on the tax roll.
Notwithstanding the foregoing, no prepayment will be allowed unless the amount of the Maximum Special Taxes that may be levied on Taxable Property both prior to and after the proposed prepayment is at least 1.1 times the annual debt service on all Outstanding Bonds in each succeeding Bond Year.
2. Prepayment in Part
The Special Tax obligation of an Assessor's Parcel of Developed Property, Final Subdivision Property, Tentative Map Property, or Undeveloped Property for which a building permit has been issued may be partially prepaid in increments of 25%, 50%, or 75% of the Prepayment Amount calculated according to Section I.1, minus Administrative Fees and Expenses calculated according to Section I.1.
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 1 Page 15 A partial prepayment can only occur once per Assessor’s Parcel. The amount of the prepayment shall b
e calculated as in Section I.1; except that a partial prepayment shall be calculated according to the following formula:
PP = ((PE – A) x F) + A
These terms have the following meaning:
PP = the Partial Prepayment Amount
PE = the Prepayment Amount calculated according to Section I.1 A = the Administrative Fees and Expenses calculated according to Section I.1 F = the percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax obligation.
The owner of an Assessor’s Parcel who desires to partially prepay the Special Tax obligation shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Special Tax obligation, (ii) the amount of partial prepayment expressed in increments of 25%, 50%, or 75% of the Prepayment Amount calculated according to Section I.1, minus Administrative Fees and Expenses calculated according to Section I.1, and (iii) the company or agency that will be acting as the escrow agent, if applicable. Partial prepayment must be made not less than 75 days prior to the next occurring date that notice of redemption of Bonds from the proceeds of such partial prepayment may be given to the Trustee pursuant to the Indenture. The CFD Administrator may charge a fee for providing this service.
With respect to any Assessor’s Parcel that is partially prepaid, the CFD Administrator shall (i) distribute the funds remitted to it according to Step 15 of Section I.1, and (ii) indicate in the records of Improvement Area No. 1 that there has been a partial prepayment of the Special Tax obligation and that a portion of the Special Tax obligation equal to the outstanding percentage (1.00 - F) of the remaining Special Tax obligation shall continue to be authorized to be levied on such Assessor’s Parcel pursuant to Section D.
Notwithstanding the foregoing, no partial prepayment will be allowed unless the amount of Maximum Special Taxes that may be levied on Taxable Property both prior to and after the proposed partial prepayment is at least 1.1 times the annual debt service on all Outstanding Bonds in each succeeding Bond year.
J. TERM OF SPECIAL TAX
The Special Tax shall be levied commencing in Fiscal Year 2021-2022 to the extent necessary to fully satisfy the Special Tax Requirement and shall not be levied after the 2065-2066 Fiscal Year.
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 1 Page 16 EXHIBIT 1
E
XPECTED UNITS/REVENUE PER VILLAGE FOR DEVELOPED PROPERTY (FISCAL YEAR 2021-22)
Land Use Class Village 1
Expected
Units 2
Expected
Revenue 3
1 LDR-1 157 $340,376
1 LDR-2 81 175,608
2 MDR-1 110 191,950
2 MDR-2 34 59,330
3 HDR-1 59 14,750
1 As shown on Exhibit 2 to this RMA.
2 There is a total of 441 Expected Units within Improvement Area No. 1. 3 The total Expected Revenue within Improvement Area No. 1 is $782,014, stated in F
iscal Year 2021-2022 dollars. On each July 1, commencing on July 1, 2022, the Expected Revenue shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 1 Page 17 EXHIBIT 2
MA
P OF VILLAGES WITHIN IMPROVEMENT AREA NO. 1
EXHIBIT C
DELTA SHORES COMMUNITY FACILITIES DISTRICT NO. 2019-01
(IMPROVEMENTS), CITY OF SACRAMENTO, COUNTY OF SACRAMENTO, STATE
OF CALIFORNIA
AMENDED AND RESTATED
RATE, METHOD OF APPORTIONMENT,
AND MANNER OF COLLECTION OF SPECIAL TAX
IMPROVEMENT AREA NO. 3
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 1
AMENDED AND RESTATED
RATE AND METHOD OF APPORTIONMENT FOR
DELTA SHORES COMMUNITY FACILITIES DISTRICT NO. 2019-01 (IMPROVEMENTS)
CITY OF SACRAMENTO
COUNTY OF SACRAMENTO
STATE OF CALIFORNIA
IMPROVEMENT AREA NO. 3
A Special Tax as hereinafter defined shall be levied on each Assessor's Parcel of Taxable Property within Improvement Area No. 3 of the Delta Shores Community Facilities District No. 2019-01 (Improvements), City of Sacramento, County of Sacramento, State of California and collected each Fiscal Year commencing no earlier than Fiscal Year 2021-2022 in an amount determined through the application of the procedures described below. All of the real property within Improvement Area No. 3, unless exempted by law or 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 meaning:
“Acre or Acreage” means the land area of an Assessor’s Parcel as shown on County records, such as on an Assessor’s Parcel Map and/or in the Assessor’s Data, 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, record of survey, or other recorded document creating or describing the parcel or calculated using available spatial data and GIS, all as determined by the CFD Administrator. The square footage of an Assessor’s Parcel is equal to the Acreage of such parcel multiplied by 43,560. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. “Accessory Dwelling Unit” means a secondary residential unit of limited size, as defined in California Government Code Section 65852.2 and/or meeting the criteria outlined in Sacramento City Code Section 17.228.105, as may be amended from time-to-time. “Administrative Expenses” means the actual or reasonably estimated costs directly related to the administration of Improvement Area No. 3 including, but not limited to, the following: the costs of computing the Special Tax and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Tax (whether by the County, the City, or otherwise); the costs of remitting the Special Tax 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 costs to the City, Improvement Area No. 3, or any designee thereof of complying with arbitrage rebate requirements or responding to questions from the IRS pertaining to any Bonds or any audit of any Bonds by the IRS; the costs to the City, Improvement Area No. 3, or any designee thereof of providing continuing disclosure regarding the Bonds pursuant to applicable state or federal securities law; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 2 regarding the Special Tax; the costs of the City, Improvement Area No. 3, or any designee thereof related to any appeal of the levy or application of the Special Tax; and the costs associated with the release of funds from an escrow account, if any. Administrative Expenses shall also include amounts estimated or advanced by the City, or Improvement Area No. 3 for any other administrative purposes, including, but not limited to, attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of any delinquent installment of the Special Tax. “Airspace Parcel” means a property with an assigned Assessor’s Parcel number that constitutes vertical space on an underlying land Parcel.
“Assessor’s Data” means the property characteristic data compiled and maintained by the County Assessor for each Assessor’s Parcel, including, but not limited to, Assessor’s Parcel Number, Use Code, and Units.
“Assessor’s Parcel” or “Parcel” means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel number.
“Assessor’s Parcel Map” means an official map of the County Assessor designating parcels by an Assessor’s Parcel number.
“Assigned Special Tax” means the Special Tax for each Land Use Class of Developed Property, as determined in accordance with Section C.1.a., or the Special Tax for each Land Use Class of Final Subdivision Property, as determined in accordance with Section C.1.b. “Authorized Facilities” means the public facilities authorized to be financed, in whole or in part, by Bonds or Special Tax revenue dedicated to Pay-As-You-Go Expenditures for Improvement Area No. 3. “Backup Special Tax” means the Backup Special Tax amount set forth in Section C.1.c. “Bonds” means any bonds or other debt (as defined in the Act), whether in one or more series, issued or incurred for Improvement Area No. 3 under the Act to fund the Authorized Facilities. “Bond Year” means a one-year period beginning on September 2 nd in each year and ending on
September 1st in the following year, unless defined differently in the applicable Indenture. “Boundary Map” means that map recorded with the County Recorder’s office on August 23, 2019, in Book 129 at Page 9 as Document Number 201908230413.
“CFD Administrator” means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Tax. “CFD” means Delta Shores Community Facilities District No. 2019-01 (Improvements), City of Sacramento, County of Sacramento, State of California.
“City” means the City of Sacramento.
“Council” means the City Council of the City, acting as legislative body with respect to the CFD as contemplated by the Act.
“County” means the County of Sacramento.
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 3 “County Assessor” means the County of Sacramento, Office of the Assessor. “Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit has been issued prior to June 1st preceding the Fiscal Year in which the Special Tax is being levied. “Exempt Property” means all Assessor’s Parcels that are exempt from the Special Tax pursuant to Section E.
“Expected Revenue” means the expected Special Tax revenue from Developed Property within Improvement Area No. 3, as shown on the attached Exhibit 1. “Expected Units” means the expected number of Units on Developed Property within Improvement Area No. 3, as shown on the attached Exhibit 1.
“Final Subdivision” means a subdivision of property created by recordation of a final subdivision map, parcel map or lot line adjustment, approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code Section 1352, that creates individual lots for which residential building permits may be issued without further subdivision of such property. “Final Subdivision Property” means, in any Fiscal Year, all property for which a Final Subdivision was recorded prior to June 1
st of the preceding Fiscal Year and which has not yet become Developed Property.
“Fiscal Year” means the period starting July 1st and ending on the following June 30th. “GIS”, or geographic information system, means a system designed to capture, store, manipulate, analyze, manage, and present spatial or geographic data. “High-Density Residential Property” means, in any Fiscal Year, all Assessor’s Parcels of Developed Property with a density of 15 or greater Units per Acre. The assignment of the High-Density Residential Property Land Use Class to an Assessor’s Parcel shall be based upon reference to Exhibit 2 to this RMA showing the Villages within Improvement Area No. 3 designated as “HDR” or similar. “Improvement Area” means any of the three improvement areas shown on the Boundary Map of the CFD.
“Improvement Area No. 3” means Improvement Area No. 3 of the Delta Shores Community Facilities District No. 2019-01 (Improvements), City of Sacramento, County of Sacramento, State of California. “Indenture” means the indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Class” means any of the classes listed in Table 1 and Table 2. “Low-Density Residential Property” means, in any Fiscal Year, all Assessor’s Parcels of Developed Property with a density of 7 or fewer Units per Acre. The assignment of the Low-Density Residential Property Land Use Class to an Assessor’s Parcel shall be based upon reference to Exhibit 2 to this RMA showing the Villages within Improvement Area No. 3 designated as “LDR” or similar.
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 4 “Maximum Special Tax” means the maximum annual Special Tax, determined in accordance with the provisions of Section C, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
“Medium-Density Residential Property” means, in any Fiscal Year, all Assessor’s Parcels of Developed Property with a density of 8-14 Units per Acre. The assignment of the Medium-Density Residential Property Land Use Class to an Assessor’s Parcel shall be based upon reference to Exhibit 2 to this RMA showing the Villages within Improvement Area No. 3 designated as “MDR” or similar. “Minimum Taxable Acreage” means 195.69 Acres for Improvement Area No. 3. “Mixed-Use Residential Property” means, in any Fiscal Year, all Assessor’s Parcels of Developed Property containing structures that have a mixture of residential and non-residential uses. The non- residential portions of the Parcel are not subject to the Special Tax. The assignment of the Mixed-Use Residential Property to an Assessor’s Parcel shall be based upon reference to Exhibit 2 to this RMA showing the Villages within Improvement Area No. 3 designated as “MU” or similar. “Non-Residential Property” means, in any Fiscal Year, all Assessor’s Parcels of Developed Property not classified as Low-Density Residential Property, Medium-Density Residential Property, High- Density Residential Property, or Mixed-Use Residential Property. “Open Space Property” means property within the boundaries of Improvement Area No. 3 which (a) has been designated with specific boundaries and Acreage on a Final Subdivision map as open space, a park, detention basin, or wetland restoration, (b) is classified by the County Assessor as open space, a park, detention basin, or wetland restoration, (c) has been irrevocably offered for dedication as open space, a park, detention basin, or wetland restoration to the federal government, the State of California, the County, the City, or any other public agency or nonprofit holding a conservation easement, or (d) is encumbered by an easement or other restriction required by the City limiting the use of such property to open space, a park, detention basin, or wetland restoration. “Outstanding Bonds” mean all Bonds, which remain outstanding as defined in the Indenture pursuant to which such Bonds were issued.
“Pay-As-You-Go Expenditure” means Special Tax revenue which is used or set aside for Authorized Facilities, including for Authorized Facilities to be constructed or acquired by the CFD. Pay-As-You-Go Expenditures may be included in the Special Tax Requirement until all Authorized Facilities have been constructed or acquired.
“Property Owner Association Property” means any property within the boundaries of Improvement Area No. 3 which is (a) owned by a property owner association or (b) designated with specific boundaries and Acreage on a Final Subdivision map as property owner association property. As used in this definition, a property owner association includes any master or sub-association. “Proportionately” means for Developed Property that the ratio of the Special Tax levy to the Assigned Special Tax or the Backup Special Tax is equal for all Assessor’s Parcels of Developed Property within Improvement Area No. 3. For Final Subdivision Property, Taxable Contingent Property, Tentative Map Property, or Undeveloped Property, “Proportionately” means that the ratio of the actual Special Tax
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 5 levy per Acre to the Maximum Annual Special Tax per Acre is equal for all Assessor’s Parcels of Final Subdivision Property, Taxable Contingent Property, Tentative Map Property, or Undeveloped Property within Improvement Area No. 3.
“Public Property” means any property within the boundaries of Improvement Area No. 3 which (a) is owned by a public agency, (b) has been irrevocably offered for dedication to a public agency, or (c) is designated with specific boundaries and Acreage on a Final Subdivision map as property which will be owned by a public agency. For purposes of this definition, a public agency includes the federal government, the State, the County, the City or any other public agency, including school districts and public utilities.
“RMA” means this Amended and Restated Rate and Method of Apportionment of Special Tax, which may be amended from time-to-time.
“Special Tax” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax Requirement. “Special Tax Requirement” means that amount of Special Tax revenue required in any Fiscal Year for Improvement Area No. 3 to: (i) pay Administrative Expenses; (ii) pay annual debt service on all Outstanding Bonds due in the Bond Year beginning in such Fiscal Year; (iii) pay other periodic costs on Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on Outstanding Bonds; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds in accordance with the Indenture, to the extent not included in a computation of the Special Tax Requirement for a previous Fiscal Year; (v) to the extent permitted by the Act, pay for reasonably anticipated delinquent installments of the Special Tax based on the delinquency rate for the Special Tax levied in the previous Fiscal Year; and (vi) account for Pay-As-You-Go Expenditures for the Authorized Facilities; less (vii) a credit for funds available to reduce the annual Special Tax levy as determined by the CFD Administrator pursuant to the Indenture. “State” means the State of California.
“Taxable Contingent Property” means any Assessor’s Parcel of Non-Residential Property, Open Space Property, Property Owner Association Property, Public Property, or other property that would otherwise be classified as Exempt Property pursuant to the provisions of Section E, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property located within Improvement Area No. 3 below the Minimum Taxable Acreage for Improvement Area No. 3.
“Taxable Property” means all of the Assessor’s Parcels within the boundaries of Improvement Area No. 3 that are not exempt from the Special Tax pursuant to law or Section E below. “Tentative Map” means a map that is made for the purpose of showing the design of a proposed subdivision, including the individual lots that are expected within the subdivision, as well as the conditions pertaining thereto. A Tentative Map is not based on a detailed survey of the property within the map and is not recorded with the County recorder’s office to create legal lots. “Tentative Map Property” means, in any Fiscal Year, all Parcels which are included within a Tentative
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 6 Map that was approved prior to June 1 of the prior Fiscal Year. “Trustee” means the financial institution appointed pursuant to an Indenture to act as the trustee, fiscal agent, or paying agent or a combination thereof to administer a series of Bonds for and on behalf of Improvement Area No. 3 and the City under such Indenture. “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Final Subdivision Property, Taxable Contingent Property, or Tentative Map Property. “Unit” means an individual residential living space. The number of Units assigned to each Assessor’s Parcel may be determined by (i) referencing Assessor’s Data, (ii) site surveys and physical unit counts, and/or (iii) reviewing City building permit data. An Accessory Dwelling Unit shall not be considered a Unit for the purposes of the Special Tax.
“Use Code” means the six-digit use code assigned by the County Assessor to each Assessor’s Parcel. “Village” means an area, as shown on Exhibit 2 to the RMA, proposed for residential development for Low-Density Residential Property, Medium-Density Residential Property, High-Density Residential Property, or Mixed-Use Residential Property.
“Welfare Exempt Property” means any Parcel within the boundaries of Improvement Area No. 3 that is exempt from the Special Tax pursuant to Section 53340 (c) of the Act because the Parcel has received a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code.
During any time that Bonds are outstanding, property that was not classified as Welfare Exempt Property prior to the issuance of Bonds and was subject to the Special Tax prior to receiving the welfare exemption may no longer be categorized as Welfare Exempt Property regardless of whether the Assessor’s Parcel has been granted a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code by the County.
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, all Assessor’s Parcels of Taxable Property within Improvement Area No. 3 shall be (a) classified as Developed Property, Final Subdivision Property, Taxable Contingent Property, Tentative Map Property, or Undeveloped Property and (b) shall be subject to the levy of the annual Special Tax determined pursuant to Section C below.
C. MAXIMUM SPECIAL TAX RATE
1. Developed Property and Final Subdivision Property
The Maximum Special Tax for each Assessor’s Parcel of Developed Property and Final Subdivision Property shall be the greater of (1) the Assigned Special Tax described in Section C.1.a and C.1.b or (2) the Backup Special Tax computed pursuant to Section C.1.c.
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 7 a. Assigned Special Tax for Developed Property
The Assigned Special Tax for each Assessor’s Parcel of Developed Property is shown in Table
1. TABLE 1
Assigned Special Tax for Developed Property
(Fiscal Year 2021-2022)
Land Use
Class Description
Assigned
Special Tax
1 Low-Density Residential Property $2,027 per Unit
2 Medium-Density Residential Property $1,578 per Unit
3 High-Density Residential Property $250 per Unit
4 Mixed-Use Residential Property $250 per Unit
5 Non-Residential Property $0
b. Assigned Special Tax for Final Subdivision Property
The Assigned Special Tax for each Assessor’s Parcel of Final Subdivision Property is shown in Table 2.
TABLE 2
Assigned Special Tax for Final Subdivision Property
(Fiscal Year 2021-2022)
Land Use
Class Description
Assigned
Special Tax
1 Low-Density Residential Property $2,027 per Parcel
2 Medium-Density Residential Property $1,578 per Parcel 3 High-Density Residential Property $250 per Unit 1
4 Mixed-Use Residential Property $250 per Unit 1
5 Non-Residential Property $0
1 Per Unit expected on each Parcel of Final Subdivision Property.
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 8 c. Backup Special Tax (Fiscal Year 2021-2022)
The Backup Special Tax per Village for each Assessor’s Parcel of Developed Property and Final Subdivision Property, is calculated as follows:
Backup Special Tax = Expected Revenue / Units on Developed Property and/or Units expected on Final Subdivision Property
For each Village, by reference to Exhibit 1, should the number of Units be less than the Expected Units when all Assessor’s Parcels are classified as Developed Property, the Backup Special Tax per Unit shall be adjusted so that the Backup Special Tax per Unit is sufficient to generate the Expected Revenue in any Fiscal Year. The CFD Administrator shall update Exhibit 1 with the revised Units and Expected Revenue to be derived from each Village.
Notwithstanding the foregoing, once an Assessor’s Parcel is used for private residential purposes (as determined by the Act), the Backup Special Tax for the Assessor’s Parcel cannot be increased because of future reductions in the number of Units on other Assessor’s Parcels.
The increases to the Backup Special Tax pursuant to Section C.1.e below would still apply to such Assessor’s Parcel.
d. Changes to Land Use Class
Prior to a bond sale, if a Land Use Class change is proposed or identified that will result in a change in the Expected Revenues, no action will be needed pursuant to this Section. Each Fiscal Year, the CFD Administrator shall update Exhibit 1 to show the revised Units and Expected Revenues if a Land Use Class has been approved.
After a Bond sale, if a Land Use Class change is proposed or identified, the following must be applied:
If the revenues calculated are higher than those reflected in Exhibit 1 or less than those calculated in Exhibit 1, but the reduction in Expected Revenues does not reduce debt service coverage below the required 110% debt service coverage, no further action is needed, and the CFD Administrator shall update Exhibit 1 to show the revised Expected Revenues.
If the revenues calculated are less than those reflected in Exhibit 1, and the CFD Administrator determines that the reduction in Expected Revenues would reduce debt service coverage below the required 110% debt service coverage the Special Tax levied on the Parcel subject to a Land Use Class change will need to be paid and one of the following shall occur: (i) The landowner requesting the Land Use Class change may make a prepayment in an amount that will ensure that the reduced Expected Revenues are sufficient to meet the required 110% debt service coverage or (ii) If a prepayment is not selected, the Assigned Special Tax on the Parcel or Parcels subject to the Land Use Class change shall be increased proportionately until the Expected Revenues are sufficient to maintain the required 110% debt service coverage. Notwithstanding the foregoing, once an Assessor’s Parcel is used for private residential purposes (as determined pursuant to
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 9 the Act), the Maximum Special Tax for the Assessor’s Parcel cannot be increased because of future Land Use Class changes for other Assessor’s Parcels. e. Increase in the Assigned Special Tax and Backup Special Tax On each July 1, commencing on July 1, 2022, the Assigned Special Tax and the Backup Special Tax for Developed Property and Final Subdivision Property shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.
2. Taxable Contingent Property, Tentative Map Property, and Undeveloped Property a. Maximum Special Tax
The Maximum Special Tax for each Assessor’s Parcel of Taxable Contingent Property, Tentative Map Property, and Undeveloped Property shall be $14,386 per Acre in Fiscal Year 2021-2022.
b. Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2022, the Maximum Special Tax for Taxable Contingent Property, Tentative Map Property, and Undeveloped Property shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing no earlier than Fiscal Year 2021-2022 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement, and shall levy the Special Tax until the amount of the Special Tax equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows:
First: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property at a rate up to 100% of the greater of the applicable Assigned Special Tax or the applicable Backup Special Tax to satisfy the Special Tax Requirement.
Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on all Final Subdivision Property at a rate up to 100% of the greater of the applicable Assigned Special Tax or the applicable Backup Special Tax for Final Subdivision Property.
Third: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on all Tentative Map Property at a rate up to 100% of the Maximum Special Tax for Tentative Map Property.
Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the first three steps have been completed, the Special Tax shall be levied Proportionately on all Undeveloped Property at a rate up to 100% of the Maximum Special Tax for Undeveloped Property Fifth: If additional monies are needed to satisfy the Special Tax Requirement after the first four steps have been completed, then the Special Tax shall be levied Proportionately on all Taxable Contingent Property at a rate up to 100% of the Maximum Special Tax for Taxable Contingent Property.
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 10 Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor’s Parcel of Developed Property used for private residential purposes (as determined pursuant to the Act) in any Fiscal Year be increased as a consequence of the delinquency or default in the payment of the Special Tax by the owner or owners of any other Taxable Property by more than ten percent above the amount that would have been levied against such Assessor’s Parcel in such Fiscal Year had there been no delinquencies or defaults.
E. EXEMPTIONS
1. No Special Tax shall be levied on up to 71.08 Acres of Non-Residential Property, Open Space Property, Property Owner Association Property, and Public Property. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which property becomes Non- Residential Property, Open Space Property, Property Owner Association Property, or Public Property.
2. For the following property types in excess of the 71.08 Acres exempted above, Non-Residential Property, Open Space Property, Property Owner Association Property, or Public Property that is not exempt from the Special Tax under this section, or pursuant to the Act, shall be classified as Taxable Contingent Property. Taxable Contingent Property shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the fifth step in Section D above, at up to 100% of the applicable Maximum Special Tax for Taxable Contingent Property.
3. No Special Tax shall be levied on Welfare Exempt Property. If a Parcel is no longer eligible to be classified as Welfare Exempt Property that would make such Assessor’s Parcel eligible to continue to be classified as Exempt Property, such Assessor's Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property. Any property that is granted a welfare exemption when any Bonds are outstanding and was subject to the Special Tax prior to receiving the welfare exemption shall not be considered Welfare Exempt Property.
4. The Special Tax for any Developed Property, which would change classification to Public Property upon its transfer or dedication to a public agency, shall continue to be subject to the levy of the Special Tax as Developed Property.
5. If the use of an Assessor's Parcel changes so that such Assessor's Parcel is no longer eligible to be classified as one of the uses set forth in Section E.1. above that would make such Assessor's Parcel eligible to continue to be classified as Exempt Property, such Assessor's Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property.
6. If an Assessor’s Parcel designated as Low-Density Residential Property, Medium-Density Residential Property, High-Density Residential Property, or Mixed-Use Residential Property changes to Non-Residential Property, the Special Tax shall continue to be levied on such Non- Residential Property as if the Assessor’s Parcel was still classified as Low-Density Residential Property, Medium-Density Residential Property, High-Density Residential Property, or Mixed-Use Residential Property.
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 11 F. SPECIAL TAX APPEALS
Any property owner may file a written appeal of the Special Tax with the CFD Administrator claiming that the amount or application of the Special Tax is not correct. The appeal must be filed not later than one calendar year after having paid the Special Tax that is disputed, and the appellant must be current in all payments of the Special Tax. In addition, during the term of the appeal process, any Special Tax levied must be paid on or before the payment date established when the levy was made.
The appeal must specify the reasons why the appellant claims the amount of the Special Tax is not correct. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination.
If the property owner disagrees with the CFD Administrator’s decision relative to the appeal, the owner may then file a written appeal with the Council whose subsequent decision shall be final and binding on all interested parties. If the decision of the CFD Administrator or subsequent decision by the Council requires the Special Tax to be modified or changed in favor of the property owner, no cash refund shall be made for the prior years’ Special Tax, but an adjustment shall be made to credit future Special Tax levies.
G. INTERPRETATIONS
The City may, by resolution or ordinance, interpret, clarify and/or revise this RMA to correct any inconsistency, vagueness, or ambiguity as it relates to the Special Tax, method of apportionment, classification of Parcels, or any definition used herein, as long as such correction does not materially affect the levy and collection of the Special Tax. In addition, the interpretation and application of any section of this document shall be at the City’s discretion.
H. MANNER OF COLLECTION
The annual Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the CFD Administrator may, at the sole discretion of the City, directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner as necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on Assessor's Parcels of Taxable Property that are delinquent in the payment of the Special Tax.
I. PREPAYMENT OF SPECIAL TAX OBLIGATION
The following definitions apply to this Section I:
“CFD Public Facilities” means those public facilities authorized to be financed by Improvement Area No. 3.
“CFD Public Facilities Costs” means either $10,862,831 in costs for completed facilities/land dedications in 2021 dollars; plus $34,890,585 in costs for pending facilities/land dedications in 2021 dollars, which shall increase by the Construction Cost Index on July 1, 2022, and on each July 1 thereafter, or such lower number as shall be determined either by (a) the CFD Administrator as
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 12 sufficient to finance the CFD Public Facilities, or (b) the Council concurrently with a covenant that it will not issue any more Bonds to be secured by Special Taxes levied under this RMA. “Construction Cost Index” means the annual percentage change in the Engineering News-Record Construction Cost Index for the City of San Francisco, measured as of June in the previous Fiscal Year.
In the event this index ceases to be published, the Construction Cost Index shall be another index as determined by the CFD Administrator that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of San Francisco.
“Construction Fund” means an account specifically identified in the Indenture to hold funds which are currently available for expenditure to acquire or construct the CFD Public Facilities. “Future Facilities Costs” means the CFD Public Facilities Costs minus the portion of the CFD Public Facilities Costs previously funded from (a) proceeds of all previously issued Bonds, (b) interest earnings on the Construction Fund actually earned prior to the date of prepayment and (c) proceeds of the Special Tax dedicated to Pay-As-You-Go Expenditures. In no case, shall the Future Facilities Costs be less than zero.
“Outstanding Bonds” means all previously issued Bonds which will remain outstanding after the first principal payment date following the then current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Tax obligations.
1. Prepayment in Full
The Special Tax obligation of an Assessor's Parcel of Developed Property, Final Subdivision Property, Taxable Contingent Property, Tentative Map Property, or Undeveloped Property may be prepaid and permanently satisfied as described herein; provided that there are no delinquent installments of the Special Tax with respect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Special Tax obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 45 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount of such Assessor's Parcel.
Prepayment must be made not less than 75 days prior to the next occurring date that notice of redemption of Bonds from the proceeds of such prepayment may be given to the Trustee pursuant to the Indenture. The CFD Administrator may charge a fee for providing this service.
The Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below):
Bond Redemption Amount
plus Future Facilities Amount
plus Redemption Premium
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
Total: equals Prepayment Amount
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 13 As of the proposed date of prepayment, the Prepayment Amount (defined below) shall be calculated as follows:
Step Number:
1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.
2. For Assessor’s Parcels of Developed Property other than Non-Residential Property, compute the Assigned Special Tax and Backup Special Tax. For Assessor’s Parcels of Final Subdivision Property, Tentative Map Property, and Undeveloped Property to be prepaid, compute the Assigned Special Tax and Backup Special Tax for that Assessor’s Parcel as though it was already designated as Developed Property, based upon the number of Expected Units to be developed on that Assessor’s Parcel.
3. a. Divide the Assigned Special Tax computed pursuant to Step 2 by the total estimated Assigned Special Tax for Improvement Area No. 3 based on the Developed Property Special Tax which could be charged in the current Fiscal Year on all Expected Units through buildout of Improvement Area No. 3, excluding any Assessor’s Parcels which have prepaid the Special Tax obligation in full pursuant to Section I.1.
b. Divide the Backup Special Tax computed pursuant to Step 2 by the total estimated Backup Special Tax for Improvement Area No. 3 based on the Developed Property Special Tax which could be charged in the current Fiscal Year on all Expected Units through buildout of Improvement Area No. 3, excluding any Assessor’s Parcels which have prepaid the Special Tax obligation in full pursuant to Section I.1.
4. Multiply the larger quotient computed pursuant to Step 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. Compute the current Future Facilities Costs.
6. Multiply the larger quotient computed pursuant to Step 3.a or 3.b by the total Future Facilities Costs to compute the amount of the Future Facilities Amount to be retired and prepaid (the “Future Facilities Amount”).
7. Multiply the Bond Redemption Amount computed pursuant to Step 4 by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “ Redemption Premium”).
8. Compute the amount needed to pay interest on the Bond Redemption Amount on the earliest redemption date for the Outstanding Bonds.
9. Compute the amount the Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount less the Future Facilities Amount and the Administrative Fees and Expenses from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment.
10. Subtract the amount computed pursuant to Step 9 from the amount computed pursuant to
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 14 Step 8 (the “Defeasance Amount”).
11. Verify the administrative fees and expenses, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming the Outstanding Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the “Administrative Fees and Expenses”).
12. A reserve fund credit (the “ Reserve Fund Credit”) shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero.
13. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the larger quotient computed pursuant to Steps 3.a or 3.b by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the “Capitalized Interest Credit”).
14. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to Steps 4, 6, 7, 10 and 11, less the amount computed pursuant to Steps 12 and 13 (the “ Prepayment Amount”).
15. From the Prepayment Amount, the amounts computed pursuant to Steps 4, 7, 10, and 13 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Outstanding Bonds and make debt service payments. The amount computed pursuant to Step 6 shall be deposited into the Construction Fund. The amount computed pursuant to Step 11 shall be retained by the City for the payment of Administrative Fees and Expenses.
The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such cases, the increment amount that is not $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of bonds or to make debt service payments.
Any current-year Special Tax that has been placed on the County tax roll will remain on the tax roll.
Notwithstanding the foregoing, no prepayment will be allowed unless the amount of the Maximum Special Taxes that may be levied on Taxable Property both prior to and after the proposed prepayment is at least 1.1 times the annual debt service on all Outstanding Bonds in each succeeding Bond Year.
2. Prepayment in Part
The Special Tax obligation of an Assessor's Parcel of Developed Property, Final Subdivision Property, Tentative Map Property, or Undeveloped Property for which a building permit has been issued may be partially prepaid in increments of 25%, 50%, or 75% of the Prepayment Amount calculated according to Section I.1, minus Administrative Fees and Expenses calculated according to Section I.1.
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 15 A partial prepayment can only occur once per Assessor’s Parcel. The amount of the prepayment shall be calculated as in Section I.1; except that a partial prepayment shall be calculated according to the following formula:
PP = ((PE – A) x F) + A
These terms have the following meaning:
PP = the Partial Prepayment Amount
PE = the Prepayment Amount calculated according to Section I.1 A = the Administrative Fees and Expenses calculated according to Section I.1 F = the percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax obligation.
The owner of an Assessor’s Parcel who desires to partially prepay the Special Tax obligation shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Special Tax obligation, (ii) the amount of partial prepayment expressed in increments of 25%, 50%, or 75% of the Prepayment Amount calculated according to Section I.1, minus Administrative Fees and Expenses calculated according to Section I.1, and (iii) the company or agency that will be acting as the escrow agent, if applicable. Partial prepayment must be made not less than 75 days prior to the next occurring date that notice of redemption of Bonds from the proceeds of such partial prepayment may be given to the Trustee pursuant to the Indenture. The CFD Administrator may charge a fee for providing this service.
With respect to any Assessor’s Parcel that is partially prepaid, the CFD Administrator shall (i) distribute the funds remitted to it according to Step 15 of Section I.1, and (ii) indicate in the records of Improvement Area No. 3 that there has been a partial prepayment of the Special Tax obligation and that a portion of the Special Tax obligation equal to the outstanding percentage (1.00 - F) of the remaining Special Tax obligation shall continue to be authorized to be levied on such Assessor’s Parcel pursuant to Section D.
Notwithstanding the foregoing, no partial prepayment will be allowed unless the amount of Maximum Special Taxes that may be levied on Taxable Property both prior to and after the proposed partial prepayment is at least 1.1 times the annual debt service on all Outstanding Bonds in each succeeding Bond year.
J. TERM OF SPECIAL TAX
The Special Tax shall be levied commencing in Fiscal Year 2021-2022 to the extent necessary to fully satisfy the Special Tax Requirement and shall not be levied after the 2065-2066 Fiscal Year.
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 16 EXHIBIT 1
EXPECTED UNITS/REVENUE PER VILLAGE FOR DEVELOPED PROPERTY (FISCAL YEAR 2021-22)
Land Use Class Village 1
Expected
Units 2
Expected
Revenue 3
1 LDR-3 41 $83,107
1 LDR-4 51 103,377
1 LDR-5 79 160,133
1 LDR-6 34 68,918
1 LDR-7 50 101,350
1 LDR-8 41 83,107
1 LDR-9 21 42,567
1 LDR-10 44 89,188
1 LDR-11 36 72,972
2 MDR-3 107 168,846
2 MDR-4 111 175,158
2 MDR-10 101 159,378
2 MDR-11 108 170,424
2 MDR-12 66 104,148
2 MDR-13 60 94,680
2 MDR-14 86 135,708
2 MDR-15 100 157,800
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 17 Land Use Class Village 1
Expected
Units 2
Expected
Revenue 3
2 MDR-16 26 41,028
2 MDR-17 165 260,370
2 MDR-18 119 187,782
2 MDR-19 129 203,562
3 HDR-2 175 43,750
3 HDR-3 123 30,750
3 HDR-4 84 21,000
3 HDR-10 N 103 25,750
3 HDR-11 121 30,250
1 As shown on Exhibit 2 to this RMA.
2 There is a total of 2,181 Expected Units within Improvement Area No. 3. 3 The total Expected Revenue within Improvement Area No. 3 is $2,815,103, stated in Fiscal Year 2021-2022 dollars. On each July 1, commencing on July 1, 2022, the Expected Revenue shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 3 Page 18 EXHIBIT 2
MA
P OF VILLAGES WITHIN IMPROVEMENT AREA NO. 3
EXHIBIT B
DELTA SHORES COMMUNITY FACILITIES DISTRICT NO. 2019-01
(IMPROVEMENTS), CITY OF SACRAMENTO, COUNTY OF SACRAMENTO, STATE
OF CALIFORNIA
AMENDED AND RESTATED
RATE, METHOD OF APPORTIONMENT,
AND MANNER OF COLLECTION OF SPECIAL TAX
IMPROVEMENT AREA NO. 2
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 2 Page 1
AMENDED AND RESTATED
RATE AND METHOD OF APPORTIONMENT FOR
DELTA SHORES COMMUNITY FACILITIES DISTRICT NO. 2019-01 (IMPROVEMENTS)
CITY OF SACRAMENTO
COUNTY OF SACRAMENTO
STATE OF CALIFORNIA
IMPROVEMENT AREA NO. 2
A Special Tax as hereinafter defined shall be levied on each Assessor's Parcel of Taxable Property within Improvement Area No. 2 of the Delta Shores Community Facilities District No. 2019-01 (Improvements), City of Sacramento, County of Sacramento, State of California and collected each Fiscal Year commencing no earlier than Fiscal Year 2021-2022 in an amount determined through the application of the procedures described below. All of the real property within Improvement Area No. 2, unless exempted by law or 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 meaning:
“Acre or Acreage” means the land area of an Assessor’s Parcel as shown on County records, such as on an Assessor’s Parcel Map and/or in the Assessor’s Data, 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, record of survey, or other recorded document creating or describing the parcel or calculated using available spatial data and GIS, all as determined by the CFD Administrator. The square footage of an Assessor’s Parcel is equal to the Acreage of such parcel multiplied by 43,560. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. “Accessory Dwelling Unit” means a secondary residential unit of limited size, as defined in California Government Code Section 65852.2 and/or meeting the criteria outlined in Sacramento City Code Section 17.228.105, as may be amended from time-to-time. “Administrative Expenses” means the actual or reasonably estimated costs directly related to the administration of Improvement Area No. 2 including, but not limited to, the following: the costs of computing the Special Tax and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Tax (whether by the County, the City, or otherwise); the costs of remitting the Special Tax 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 costs to the City, Improvement Area No. 2, or any designee thereof of complying with arbitrage rebate requirements or responding to questions from the IRS pertaining to any Bonds or any audit of any Bonds by the IRS; the costs to the City, Improvement Area No. 2, or any designee thereof of providing continuing disclosure regarding the Bonds pursuant to applicable state or federal securities law; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries
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Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 2 Page 2 regarding the Special Tax; the costs of the City, Improvement Area No. 2, or any designee thereof related to any appeal of the levy or application of the Special Tax; and the costs associated with the release of funds from an escrow account, if any. Administrative Expenses shall also include amounts estimated or advanced by the City, or Improvement Area No. 2 for any other administrative purposes, including, but not limited to, attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of any delinquent installment of the Special Tax. “Airspace Parcel” means a property with an assigned Assessor’s Parcel number that constitutes vertical space on an underlying land Parcel.
“Assessor’s Data” means the property characteristic data compiled and maintained by the County Assessor for each Assessor’s Parcel, including, but not limited to, Assessor’s Parcel Number, Use Code, and Units.
“Assessor’s Parcel” or “Parcel” means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel number.
“Assessor’s Parcel Map” means an official map of the County Assessor designating parcels by an Assessor’s Parcel number.
“Assigned Special Tax” means the Special Tax for each Land Use Class of Developed Property, as determined in accordance with Section C.1.a., or the Special Tax for each Land Use Class of Final Subdivision Property, as determined in accordance with Section C.1.b. “Authorized Facilities” means the public facilities authorized to be financed, in whole or in part, by Bonds or Special Tax revenue dedicated to Pay-As-You-Go Expenditures for Improvement Area No. 2. “Backup Special Tax” means the Backup Special Tax amount set forth in Section C.1.c. “Bonds” means any bonds or other debt (as defined in the Act), whether in one or more series, issued or incurred for Improvement Area No. 2 under the Act to fund the Authorized Facilities. “Bond Year” means a one-year period beginning on September 2 nd in each year and ending on
September 1st in the following year, unless defined differently in the applicable Indenture. “Boundary Map” means that map recorded with the County Recorder’s office on August 23, 2019, in Book 129 at Page 9 as Document Number 201908230413.
“CFD Administrator” means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Tax. “CFD” means Delta Shores Community Facilities District No. 2019-01 (Improvements), City of Sacramento, County of Sacramento, State of California.
“City” means the City of Sacramento.
“Council” means the City Council of the City, acting as legislative body with respect to the CFD as contemplated by the Act.
“County” means the County of Sacramento.
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Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 2 Page 3 “County Assessor” means the County of Sacramento, Office of the Assessor. “Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit has been issued prior to June 1st preceding the Fiscal Year in which the Special Tax is being levied. “Exempt Property” means all Assessor’s Parcels that are exempt from the Special Tax pursuant to Section E.
“Expected Revenue” means the expected Special Tax revenue from Developed Property within Improvement Area No. 2, as shown on the attached Exhibit 1. “Expected Units” means the expected number of Units on Developed Property within Improvement Area No. 2, as shown on the attached Exhibit 1.
“Final Subdivision” means a subdivision of property created by recordation of a final subdivision map, parcel map or lot line adjustment, approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code Section 1352, that creates individual lots for which residential building permits may be issued without further subdivision of such property. “Final Subdivision Property” means, in any Fiscal Year, all property for which a Final Subdivision was recorded prior to June 1
st of the preceding Fiscal Year and which has not yet become Developed Property.
“Fiscal Year” means the period starting July 1st and ending on the following June 30th. “GIS”, or geographic information system, means a system designed to capture, store, manipulate, analyze, manage, and present spatial or geographic data. “High-Density Residential Property” means, in any Fiscal Year, all Assessor’s Parcels of Developed Property with a density of 15 or greater Units per Acre. The assignment of the High-Density Residential Property Land Use Class to an Assessor’s Parcel shall be based upon reference to Exhibit 2 to this RMA showing the Villages within Improvement Area No. 2 designated as “HDR” or similar. “Improvement Area” means any of the three improvement areas shown on the Boundary Map of the CFD.
“Improvement Area No. 2” means Improvement Area No. 2 of the Delta Shores Community Facilities District No. 2019-01 (Improvements), City of Sacramento, County of Sacramento, State of California. “Indenture” means the indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Class” means any of the classes listed in Table 1 and Table 2. “Low-Density Residential Property” means, in any Fiscal Year, all Assessor’s Parcels of Developed Property with a density of 7 or fewer Units per Acre. The assignment of the Low-Density Residential Property Land Use Class to an Assessor’s Parcel shall be based upon reference to Exhibit 2 to this RMA showing the Villages within Improvement Area No. 2 designated as “LDR” or similar.
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Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 2 Page 4 “Maximum Special Tax” means the maximum annual Special Tax, determined in accordance with the provisions of Section C, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
“Medium-Density Residential Property” means, in any Fiscal Year, all Assessor’s Parcels of Developed Property with a density of 8-14 Units per Acre. The assignment of the Medium-Density Residential Property Land Use Class to an Assessor’s Parcel shall be based upon reference to Exhibit 2 to this RMA showing the Villages within Improvement Area No. 2 designated as “MDR” or similar. “Minimum Taxable Acreage” means 83.95 Acres for Improvement Area No. 2. “Mixed-Use Residential Property” means, in any Fiscal Year, all Assessor’s Parcels of Developed Property containing structures that have a mixture of residential and non-residential uses. The non- residential portions of the Parcel are not subject to the Special Tax. The assignment of the Mixed-Use Residential Property to an Assessor’s Parcel shall be based upon reference to Exhibit 2 to this RMA showing the Villages within Improvement Area No. 2 designated as “MU” or similar. “Non-Residential Property” means, in any Fiscal Year, all Assessor’s Parcels of Developed Property not classified as Low-Density Residential Property, Medium-Density Residential Property, High- Density Residential Property, or Mixed-Use Residential Property. “Open Space Property” means property within the boundaries of Improvement Area No. 2 which (a) has been designated with specific boundaries and Acreage on a Final Subdivision map as open space, a park, detention basin, or wetland restoration, (b) is classified by the County Assessor as open space, a park, detention basin, or wetland restoration, (c) has been irrevocably offered for dedication as open space, a park, detention basin, or wetland restoration to the federal government, the State of California, the County, the City, or any other public agency or nonprofit holding a conservation easement, or (d) is encumbered by an easement or other restriction required by the City limiting the use of such property to open space, a park, detention basin, or wetland restoration. “Outstanding Bonds” mean all Bonds, which remain outstanding as defined in the Indenture pursuant to which such Bonds were issued.
“Pay-As-You-Go Expenditure” means Special Tax revenue which is used or set aside for Authorized Facilities, including for Authorized Facilities to be constructed or acquired by the CFD. Pay-As-You-Go Expenditures may be included in the Special Tax Requirement until all Authorized Facilities have been constructed or acquired.
“Property Owner Association Property” means any property within the boundaries of Improvement Area No. 2 which is (a) owned by a property owner association or (b) designated with specific boundaries and Acreage on a Final Subdivision map as property owner association property. As used in this definition, a property owner association includes any master or sub-association. “Proportionately” means for Developed Property that the ratio of the Special Tax levy to the Assigned Special Tax or the Backup Special Tax is equal for all Assessor’s Parcels of Developed Property within Improvement Area No. 2. For Final Subdivision Property, Taxable Contingent Property, Tentative Map Property, or Undeveloped Property, “Proportionately” means that the ratio of the actual Special Tax
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Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 2 Page 5 levy per Acre to the Maximum Annual Special Tax per Acre is equal for all Assessor’s Parcels of Final Subdivision Property, Taxable Contingent Property, Tentative Map Property, or Undeveloped Property within Improvement Area No. 2.
“Public Property” means any property within the boundaries of Improvement Area No. 2 which (a) is owned by a public agency, (b) has been irrevocably offered for dedication to a public agency, or (c) is designated with specific boundaries and Acreage on a Final Subdivision map as property which will be owned by a public agency. For purposes of this definition, a public agency includes the federal government, the State, the County, the City or any other public agency, including school districts and public utilities.
“RMA” means this Amended and Restated Rate and Method of Apportionment of Special Tax, which may be amended from time-to-time.
“Special Tax” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax Requirement. “Special Tax Requirement” means that amount of Special Tax revenue required in any Fiscal Year for Improvement Area No. 2 to: (i) pay Administrative Expenses; (ii) pay annual debt service on all Outstanding Bonds due in the Bond Year beginning in such Fiscal Year; (iii) pay other periodic costs on Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on Outstanding Bonds; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds in accordance with the Indenture, to the extent not included in a computation of the Special Tax Requirement for a previous Fiscal Year; (v) to the extent permitted by the Act, pay for reasonably anticipated delinquent installments of the Special Tax based on the delinquency rate for the Special Tax levied in the previous Fiscal Year; and (vi) account for Pay-As-You-Go Expenditures for the Authorized Facilities; less (vii) a credit for funds available to reduce the annual Special Tax levy as determined by the CFD Administrator pursuant to the Indenture. “State” means the State of California.
“Taxable Contingent Property” means any Assessor’s Parcel of Non-Residential Property, Open Space Property, Property Owner Association Property, Public Property, or other property that would otherwise be classified as Exempt Property pursuant to the provisions of Section E, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property located within Improvement Area No. 2 below the Minimum Taxable Acreage for Improvement Area No. 2.
“Taxable Property” means all of the Assessor’s Parcels within the boundaries of Improvement Area No. 2 that are not exempt from the Special Tax pursuant to law or Section E below. “Tentative Map” means a map that is made for the purpose of showing the design of a proposed subdivision, including the individual lots that are expected within the subdivision, as well as the conditions pertaining thereto. A Tentative Map is not based on a detailed survey of the property within the map and is not recorded with the County recorder’s office to create legal lots. “Tentative Map Property” means, in any Fiscal Year, all Parcels which are included within a Tentative
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Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 2 Page 6 Map that was approved prior to June 1 of the prior Fiscal Year. “Trustee” means the financial institution appointed pursuant to an Indenture to act as the trustee, fiscal agent, or paying agent or a combination thereof to administer a series of Bonds for and on behalf of Improvement Area No. 2 and the City under such Indenture. “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Final Subdivision Property, Taxable Contingent Property, or Tentative Map Property. “Unit” means an individual residential living space. The number of Units assigned to each Assessor’s Parcel may be determined by (i) referencing Assessor’s Data, (ii) site surveys and physical unit counts, and/or (iii) reviewing City building permit data. An Accessory Dwelling Unit shall not be considered a Unit for the purposes of the Special Tax.
“Use Code” means the six-digit use code assigned by the County Assessor to each Assessor’s Parcel. “Village” means an area, as shown on Exhibit 2 to the RMA, proposed for residential development for Low-Density Residential Property, Medium-Density Residential Property, High-Density Residential Property, or Mixed-Use Residential Property.
“Welfare Exempt Property” means any Parcel within the boundaries of Improvement Area No. 2 that is exempt from the Special Tax pursuant to Section 53340 (c) of the Act because the Parcel has received a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code.
During any time that Bonds are outstanding, property that was not classified as Welfare Exempt Property prior to the issuance of Bonds and was subject to the Special Tax prior to receiving the welfare exemption may no longer be categorized as Welfare Exempt Property regardless of whether the Assessor’s Parcel has been granted a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code by the County.
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, all Assessor’s Parcels of Taxable Property within Improvement Area No. 2 shall be (a) classified as Developed Property, Final Subdivision Property, Taxable Contingent Property, Tentative Map Property, or Undeveloped Property and (b) shall be subject to the levy of the annual Special Tax determined pursuant to Section C below.
C. MAXIMUM SPECIAL TAX RATE
1. Developed Property and Final Subdivision Property
The Maximum Special Tax for each Assessor’s Parcel of Developed Property and Final Subdivision Property shall be the greater of (1) the Assigned Special Tax described in Section C.1.a and C.1.b or (2) the Backup Special Tax computed pursuant to Section C.1.c.
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Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 2 Page 7 a. Assigned Special Tax for Developed Property
The Assigned Special Tax for each Assessor’s Parcel of Developed Property is shown in Table
1. TABLE 1
Assigned Special Tax for Developed Property
(Fiscal Year 2021-2022)
Land Use
Class Description
Assigned
Special Tax
1 Low-Density Residential Property $1,966 per Unit
2 Medium-Density Residential Property $1,530 per Unit
3 High-Density Residential Property $250 per Unit
4 Mixed-Use Residential Property $250 per Unit
5 Non-Residential Property $0
b. Assigned Special Tax for Final Subdivision Property
The Assigned Special Tax for each Assessor’s Parcel of Final Subdivision Property is shown in Table 2.
TABLE 2
Assigned Special Tax for Final Subdivision Property
(Fiscal Year 2021-2022)
Land Use
Class Description
Assigned
Special Tax
1 Low-Density Residential Property $1,966 per Parcel
2 Medium-Density Residential Property $1,530 per Parcel 3 High-Density Residential Property $250 per Unit 1
4 Mixed-Use Residential Property $250 per Unit 1
5 Non-Residential Property $0
1 Per Unit expected on each Parcel of Final Subdivision Property.
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Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 2 Page 8 c. Backup Special Tax (Fiscal Year 2021-2022)
The Backup Special Tax per Village for each Assessor’s Parcel of Developed Property and Final Subdivision Property, is calculated as follows:
Backup Special Tax = Expected Revenue / Units on Developed Property and/or Units expected on Final Subdivision Property
For each Village, by reference to Exhibit 1, should the number of Units be less than the Expected Units when all Assessor’s Parcels are classified as Developed Property, the Backup Special Tax per Unit shall be adjusted so that the Backup Special Tax per Unit is sufficient to generate the Expected Revenue in any Fiscal Year. The CFD Administrator shall update Exhibit 1 with the revised Units and Expected Revenue to be derived from each Village.
Notwithstanding the foregoing, once an Assessor’s Parcel is used for private residential purposes (as determined by the Act), the Backup Special Tax for the Assessor’s Parcel cannot be increased because of future reductions in the number of Units on other Assessor’s Parcels.
The increases to the Backup Special Tax pursuant to Section C.1.e below would still apply to such Assessor’s Parcel.
d. Changes to Land Use Class
Prior to a bond sale, if a Land Use Class change is proposed or identified that will result in a change in the Expected Revenues, no action will be needed pursuant to this Section. Each Fiscal Year, the CFD Administrator shall update Exhibit 1 to show the revised Units and Expected Revenues if a Land Use Class change has been approved.
After a Bond sale, if a Land Use Class change is proposed or identified, the following must be applied:
If the revenues calculated are higher than those reflected in Exhibit 1 or less than those calculated in Exhibit 1, but the reduction in Expected Revenues does not reduce debt service coverage below the required 110% debt service coverage, no further action is needed, and the CFD Administrator shall update Exhibit 1 to show the revised Expected Revenues.
If the revenues calculated are less than those reflected in Exhibit 1, and the CFD Administrator determines that the reduction in Expected Revenues would reduce debt service coverage below the required 110% debt service coverage the Special Tax levied on the Parcel subject to a Land Use Class change will need to be paid and one of the following shall occur: (i) The landowner requesting the Land Use Class change may make a prepayment in an amount that will ensure that the reduced Expected Revenues are sufficient to meet the required 110% debt service coverage or (ii) If a prepayment is not selected, the Assigned Special Tax on the Parcel or Parcels subject to the Land Use Class change shall be increased proportionately until the Expected Revenues are sufficient to maintain the required 110% debt service coverage. Notwithstanding the foregoing, once an Assessor’s Parcel is used for private residential purposes (as determined pursuant to
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Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 2 Page 9 the Act), the Maximum Special Tax for the Assessor’s Parcel cannot be increased because of future Land Use Class changes for other Assessor’s Parcels. e. Increase in the Assigned Special Tax and Backup Special Tax On each July 1, commencing on July 1, 2022, the Assigned Special Tax and the Backup Special Tax for Developed Property and Final Subdivision Property shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.
2. Taxable Contingent Property, Tentative Map Property, and Undeveloped Property a. Maximum Special Tax
The Maximum Special Tax for each Assessor’s Parcel of Taxable Contingent Property, Tentative Map Property, and Undeveloped Property shall be $10,180 per Acre in Fiscal Year 2021-2022.
b. Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2022, the Maximum Special Tax for Taxable Contingent Property, Tentative Map Property, and Undeveloped Property shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing no earlier than Fiscal Year 2021-2022 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement, and shall levy the Special Tax until the amount of the Special Tax equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows:
First: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property at a rate up to 100% of the greater of the applicable Assigned Special Tax or the applicable Backup Special Tax to satisfy the Special Tax Requirement.
Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on all Final Subdivision Property at a rate up to 100% of the greater of the applicable Assigned Special Tax or the applicable Backup Special Tax for Final Subdivision Property.
Third: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on all Tentative Map Property at a rate up to 100% of the Maximum Special Tax for Tentative Map Property.
Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the first three steps have been completed, the Special Tax shall be levied Proportionately on all Undeveloped Property at a rate up to 100% of the Maximum Special Tax for Undeveloped Property Fifth: If additional monies are needed to satisfy the Special Tax Requirement after the first four steps have been completed, then the Special Tax shall be levied Proportionately on all Taxable Contingent Property at a rate up to 100% of the Maximum Special Tax for Taxable Contingent Property.
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Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 2 Page 10 Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor’s Parcel of Developed Property used for private residential purposes (as determined pursuant to the Act) in any Fiscal Year be increased as a consequence of the delinquency or default in the payment of the Special Tax by the owner or owners of any other Taxable Property by more than ten percent above the amount that would have been levied against such Assessor’s Parcel in such Fiscal Year had there been no delinquencies or defaults.
E. EXEMPTIONS
1. No Special Tax shall be levied on up to 55.12 Acres of Non-Residential Property, Open Space Property, Property Owner Association Property, and Public Property. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which property becomes Non- Residential Property, Open Space Property, Property Owner Association Property, or Public Property.
2. For the following property types in excess of the 55.12 Acres exempted above, Non-Residential Property, Open Space Property, Property Owner Association Property, or Public Property that is not exempt from the Special Tax under this section, or pursuant to the Act, shall be classified as Taxable Contingent Property. Taxable Contingent Property shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the fifth step in Section D above, at up to 100% of the applicable Maximum Special Tax for Taxable Contingent Property.
3. No Special Tax shall be levied on Welfare Exempt Property. If a Parcel is no longer eligible to be classified as Welfare Exempt Property that would make such Assessor’s Parcel eligible to continue to be classified as Exempt Property, such Assessor's Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property. Any property that is granted a welfare exemption when any Bonds are outstanding and was subject to the Special Tax prior to receiving the welfare exemption shall not be considered Welfare Exempt Property.
4. The Special Tax for any Developed Property, which would change classification to Public Property upon its transfer or dedication to a public agency, shall continue to be subject to the levy of the Special Tax as Developed Property.
5. If the use of an Assessor's Parcel changes so that such Assessor's Parcel is no longer eligible to be classified as one of the uses set forth in Section E.1. above that would make such Assessor's Parcel eligible to continue to be classified as Exempt Property, such Assessor's Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property.
6. If an Assessor’s Parcel designated as Low-Density Residential Property, Medium-Density Residential Property, High-Density Residential Property, or Mixed-Use Residential Property changes to Non-Residential Property, the Special Tax shall continue to be levied on such Non- Residential Property as if the Assessor’s Parcel was still classified as Low-Density Residential Property, Medium-Density Residential Property, High-Density Residential Property, or Mixed-Use Residential Property.
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Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 2 Page 11 F. SPECIAL TAX APPEALS
Any property owner may file a written appeal of the Special Tax with the CFD Administrator claiming that the amount or application of the Special Tax is not correct. The appeal must be filed not later than one calendar year after having paid the Special Tax that is disputed, and the appellant must be current in all payments of the Special Tax. In addition, during the term of the appeal process, any Special Tax levied must be paid on or before the payment date established when the levy was made.
The appeal must specify the reasons why the appellant claims the amount of the Special Tax is not correct. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination.
If the property owner disagrees with the CFD Administrator’s decision relative to the appeal, the owner may then file a written appeal with the Council whose subsequent decision shall be final and binding on all interested parties. If the decision of the CFD Administrator or subsequent decision by the Council requires the Special Tax to be modified or changed in favor of the property owner, no cash refund shall be made for the prior years’ Special Tax, but an adjustment shall be made to credit future Special Tax levies.
G. INTERPRETATIONS
The City may, by resolution or ordinance, interpret, clarify and/or revise this RMA to correct any inconsistency, vagueness, or ambiguity as it relates to the Special Tax, method of apportionment, classification of Parcels, or any definition used herein, as long as such correction does not materially affect the levy and collection of the Special Tax. In addition, the interpretation and application of any section of this document shall be at the City’s discretion.
H. MANNER OF COLLECTION
The annual Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the CFD Administrator may, at the sole discretion of the City, directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner as necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on Assessor's Parcels of Taxable Property that are delinquent in the payment of the Special Tax.
I. PREPAYMENT OF SPECIAL TAX OBLIGATION
The following definitions apply to this Section I:
“CFD Public Facilities” means those public facilities authorized to be financed by Improvement Area No. 2.
“CFD Public Facilities Costs” means either $11,249,860 in costs for completed facilities/land dedications in 2021 dollars; plus $2,364,838 in costs for pending facilities/land dedications in 2021 dollars, which shall increase by the Construction Cost Index on July 1, 2022, and on each July 1 thereafter, or such lower number as shall be determined either by (a) the CFD Administrator as
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Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 2 Page 12 sufficient to finance the CFD Public Facilities, or (b) the Council concurrently with a covenant that it will not issue any more Bonds to be secured by Special Taxes levied under this RMA. “Construction Cost Index” means the annual percentage change in the Engineering News-Record Construction Cost Index for the City of San Francisco, measured as of June in the previous Fiscal Year.
In the event this index ceases to be published, the Construction Cost Index shall be another index as determined by the CFD Administrator that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of San Francisco.
“Construction Fund” means an account specifically identified in the Indenture to hold funds which are currently available for expenditure to acquire or construct the CFD Public Facilities. “Future Facilities Costs” means the CFD Public Facilities Costs minus the portion of the CFD Public Facilities Costs previously funded from (a) proceeds of all previously issued Bonds, (b) interest earnings on the Construction Fund actually earned prior to the date of prepayment and (c) proceeds of the Special Tax dedicated to Pay-As-You-Go Expenditures. In no case, shall the Future Facilities Costs be less than zero.
“Outstanding Bonds” means all previously issued Bonds which will remain outstanding after the first principal payment date following the then current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Tax obligations.
1. Prepayment in Full
The Special Tax obligation of an Assessor's Parcel of Developed Property, Final Subdivision Property, Taxable Contingent Property, Tentative Map Property, or Undeveloped Property may be prepaid and permanently satisfied as described herein; provided that there are no delinquent installments of the Special Tax with respect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Special Tax obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 45 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount of such Assessor's Parcel.
Prepayment must be made not less than 75 days prior to the next occurring date that notice of redemption of Bonds from the proceeds of such prepayment may be given to the Trustee pursuant to the Indenture. The CFD Administrator may charge a fee for providing this service.
The Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below):
Bond Redemption Amount
plus Future Facilities Amount
plus Redemption Premium
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
Total: equals Prepayment Amount
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Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 2 Page 13 As of the proposed date of prepayment, the Prepayment Amount (defined below) shall be calculated as follows:
Step Number:
1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.
2. For Assessor’s Parcels of Developed Property other than Non-Residential Property, compute the Assigned Special Tax and Backup Special Tax. For Assessor’s Parcels of Final Subdivision Property, Tentative Map Property, and Undeveloped Property to be prepaid, compute the Assigned Special Tax and Backup Special Tax for that Assessor’s Parcel as though it was already designated as Developed Property, based upon the number of Expected Units to be developed on that Assessor’s Parcel.
3. a. Divide the Assigned Special Tax computed pursuant to Step 2 by the total estimated Assigned Special Tax for Improvement Area No. 2 based on the Developed Property Special Tax which could be charged in the current Fiscal Year on all Expected Units through buildout of Improvement Area No. 2, excluding any Assessor’s Parcels which have prepaid the Special Tax obligation in full pursuant to Section I.1.
b. Divide the Backup Special Tax computed pursuant to Step 2 by the total estimated Backup Special Tax for Improvement Area No. 2 based on the Developed Property Special Tax which could be charged in the current Fiscal Year on all Expected Units through buildout of Improvement Area No. 2, excluding any Assessor’s Parcels which have prepaid the Special Tax obligation in full pursuant to Section I.1.
4. Multiply the larger quotient computed pursuant to Step 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. Compute the current Future Facilities Costs.
6. Multiply the larger quotient computed pursuant to Step 3.a or 3.b by the total Future Facilities Costs to compute the amount of the Future Facilities Amount to be retired and prepaid (the “Future Facilities Amount”).
7. Multiply the Bond Redemption Amount computed pursuant to Step 4 by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “ Redemption Premium”).
8. Compute the amount needed to pay interest on the Bond Redemption Amount on the earliest redemption date for the Outstanding Bonds.
9. Compute the amount the Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount less the Future Facilities Amount and the Administrative Fees and Expenses from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment.
10. Subtract the amount computed pursuant to Step 9 from the amount computed pursuant to
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 2 Page 14 Step 8 (the “Defeasance Amount”).
11. Verify the administrative fees and expenses, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming the Outstanding Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the “Administrative Fees and Expenses”).
12. A reserve fund credit (the “ Reserve Fund Credit”) shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero.
13. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the larger quotient computed pursuant to Steps 3.a or 3.b by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the “Capitalized Interest Credit”).
14. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to Steps 4, 6, 7, 10 and 11, less the amount computed pursuant to Steps 12 and 13 (the “ Prepayment Amount”).
15. From the Prepayment Amount, the amounts computed pursuant to Steps 4, 7, 10, and 13 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Outstanding Bonds and make debt service payments. The amount computed pursuant to Step 6 shall be deposited into the Construction Fund. The amount computed pursuant to Step 11 shall be retained by the City for the payment of Administrative Fees and Expenses.
The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such cases, the increment amount that is not $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of bonds or to make debt service payments.
Any current-year Special Tax that has been placed on the County tax roll will remain on the tax roll.
Notwithstanding the foregoing, no prepayment will be allowed unless the amount of the Maximum Special Taxes that may be levied on Taxable Property both prior to and after the proposed prepayment is at least 1.1 times the annual debt service on all Outstanding Bonds in each succeeding Bond Year.
2. Prepayment in Part
The Special Tax obligation of an Assessor's Parcel of Developed Property, Final Subdivision Property, Tentative Map Property, or Undeveloped Property for which a building permit has been issued may be partially prepaid in increments of 25%, 50%, or 75% of the Prepayment Amount calculated according to Section I.1, minus Administrative Fees and Expenses calculated according to Section I.1.
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 2 Page 15 A partial prepayment can only occur once per Assessor’s Parcel. The amount of the prepayment shall be calculated as in Section I.1; except that a partial prepayment shall be calculated according to the following formula:
PP = ((PE – A) x F) + A
These terms have the following meaning:
PP = the Partial Prepayment Amount
PE = the Prepayment Amount calculated according to Section I.1 A = the Administrative Fees and Expenses calculated according to Section I.1 F = the percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax obligation.
The owner of an Assessor’s Parcel who desires to partially prepay the Special Tax obligation shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Special Tax obligation, (ii) the amount of partial prepayment expressed in increments of 25%, 50%, or 75% of the Prepayment Amount calculated according to Section I.1, minus Administrative Fees and Expenses calculated according to Section I.1, and (iii) the company or agency that will be acting as the escrow agent, if applicable. Partial prepayment must be made not less than 75 days prior to the next occurring date that notice of redemption of Bonds from the proceeds of such partial prepayment may be given to the Trustee pursuant to the Indenture. The CFD Administrator may charge a fee for providing this service.
With respect to any Assessor’s Parcel that is partially prepaid, the CFD Administrator shall (i) distribute the funds remitted to it according to Step 15 of Section I.1, and (ii) indicate in the records of Improvement Area No. 2 that there has been a partial prepayment of the Special Tax obligation and that a portion of the Special Tax obligation equal to the outstanding percentage (1.00 - F) of the remaining Special Tax obligation shall continue to be authorized to be levied on such Assessor’s Parcel pursuant to Section D.
Notwithstanding the foregoing, no partial prepayment will be allowed unless the amount of Maximum Special Taxes that may be levied on Taxable Property both prior to and after the proposed partial prepayment is at least 1.1 times the annual debt service on all Outstanding Bonds in each succeeding Bond year.
J. TERM OF SPECIAL TAX
The Special Tax shall be levied commencing in Fiscal Year 2021-2022 to the extent necessary to fully satisfy the Special Tax Requirement and shall not be levied after the 2065-2066 Fiscal Year.
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 2 Page 16 EXHIBIT 1
EXPECTED UNITS/REVENUE PER VILLAGE FOR DEVELOPED PROPERTY (FISCAL YEAR 2021-22)
Land Use Class Village 1
Expected
Units 2
Expected
Revenue 3
2 MDR-5 87 $133,110
2 MDR-6 102 156,060
2 MDR-7 96 146,880
2 MDR-8 136 208,080
3 HDR-6 163 40,750
3 HDR-7 132 33,000
3 HDR-8 112 28,000
3 HDR-9 152 38,000
3 HDR-10 S 163 40,750
4 MU-1 120 30,000
1 As shown on Exhibit 2 to this RMA.
2 There is a total of 1,263 Expected Units within Improvement Area No. 2. 3 The total Expected Revenue within Improvement Area No. 2 is $854,630, stated in Fiscal Year 2021-2022 dollars. On each July 1, commencing on July 1, 2022, the Expected Revenue shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.
City of Sacramento
Delta Shores Community Facilities District No. 2019-01 (Improvements), Improvement Area No. 2 Page 17 EXHIBIT 2
MA
P OF VILLAGES WITHIN IMPROVEMENT AREA NO. 2
RESOLUTION NO.
Adopted by the Sacramento City Council
February 1, 2022
Resolution of Change Relating to the Delta Shores Community Facilities District No. 2019-01 (Improvements), City of Sacramento, County of Sacramento, State of California and the Improvement Areas Designated Therein
BACKGROUND
A. The City Council conducted proceedings under and pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982, as amended (being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California), and all laws amendatory thereof or supplemental thereto (the “Act”), to form its Delta Shores Community Facilities District No. 2019-01 (Improvements), City of Sacramento, County of Sacramento, State of California (the “Community Facilities District”), to designate within the Community Facilities District “Improvement Area No. 1,” “Improvement Area No. 2,” and “Improvement Area No. 3” (each an “Improvement Area” and collectively the “Improvement Areas”), to authorize the levy of special taxes therein for the purpose of financing the acquisition and construction of certain public facilities, to establish the appropriations limit for each Improvement Area and to authorize the issuance of bonded indebtedness or other debt (as defined in the Act) (“Debt”) to finance such public facilities, all as set forth in the City Council’s Resolution No. 2019-0371 (the “Resolution of Formation”), Resolution No. 2019-0372 (the “Resolution Deeming it Necessary to Incur Bonded Indebtedness for Improvement Area No. 1”), Resolution No. 2019-0373 (the “Resolution Deeming it Necessary to Incur Bonded Indebtedness for Improvement Area No. 2”) and Resolution No. 2019-0374 (the “Resolution Deeming it Necessary to Incur Bonded Indebtedness for Improvement Area No. 3”) each adopted on September 24, 2019.
B. On December 14, 2021, the City Council adopted its Resolution No. 2021-0362 (the “Resolution of Consideration”) in which it determined to consider (i) replacing the Rate and Method of Apportionment of the special tax for Improvement Area No. 1 set forth in Exhibit D to the Resolution of Formation with the Amended and Restated Rate and Method of Apportionment of the special tax for Improvement Area No. 1 set forth in Exhibit A to the Resolution of Consideration, increasing the aggregate principal amount of Debt that may be incurred in and for Improvement Area No. 1 from $8.0 million to $17.0 million and increasing the appropriations limit in and for Improvement Area No. 1 from the initial amount of $8.0 million for fiscal year 2019-20 to $17.0 million for fiscal year 2021-22 (collectively, the “Improvement Area No. 1 Proposed Amendments”); (ii) replacing the Rate and Method of Apportionment of the special tax for
2 Improvement Area No. 2 set forth in Exhibit E to the Resolution of Formation with the Amended and Restated Rate and Method of Apportionment of the special tax for Improvement Area No. 2 set forth in Exhibit B to the Resolution of Consideration, decreasing the aggregate principal amount of Debt that may be incurred in and for Improvement Area No. 2 from $18.8 million to $18.0 million and decreasing the appropriations limit in and for Improvement Area No. 2 from the initial amount of $18.8 million for fiscal year 2019-20 to $18.0 million for fiscal year 2021-22 (collectively, the “Improvement Area No. 2 Proposed Amendments”); and (iii) replacing the Rate and Method of Apportionment of the special tax for Improvement Area No. 3 set forth in Exhibit F to the Resolution of Formation with the Amended and Restated Rate and Method of Apportionment of the special tax for Improvement Area No. 3 set forth in Exhibit C to the Resolution of Consideration, increasing the aggregate principal amount of Debt that may be incurred in and for Improvement Area No. 3 from $39.6 million to $63.0 million and increasing the appropriations limit in and for Improvement Area No. 3 from the initial amount of $39.6 million for fiscal year 2019-20 to $63.0 million for fiscal year 2021-22 (collectively, the “Improvement Area No. 3 Proposed Amendments” and, together with the Improvement Area No. 1 Proposed Amendments and the Improvement Area No. 2 Proposed Amendments, the “Proposed Amendments”).
C. In order for the Proposed Amendments relating to each Improvement Area to be effective, a two-thirds approving vote by the qualified electors within that Improvement Area is required.
D. Special mailed-ballot elections have been conducted in each of the Improvement Areas pursuant to Resolution No. 2022-0023, Resolution No. 2022-0024 and Resolution No. 2022-0025, each adopted by the City Council on January 18, 2022, to which reference is made for further particulars.
E. A Certificate of the City Clerk Re: Preparation and Distribution of Ballots, Receipt of Executed Ballots and Declaring Election Results for each of the Improvement Areas (collectively, the “Certificates of Election Results”) has been filed with the City Council.
F. The City Council has received, reviewed and hereby accepts the Certificates of Elections Results.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City Council finds that the statements in the background paragraphs A through F are true.
Section 2. The City Council hereby finds and determines and declares that the ballot measure submitted to the qualified electors of each of the Improvement
3 Areas has been passed and approved by those qualified electors in accordance with Section 53338 of the Act.
Section 3. The City Council hereby finds and determines and declares that the authority conferred upon it by the Community Facilities District has been amended and the authorized aggregate principal amount of Debt and the appropriations limit in and for each of the Improvement Areas has been changed in accordance with the related Proposed Amendments, each as set forth in the Resolution of Consideration.
Section 4. The City Council hereby authorizes and directs the City Clerk to cause an Amended Notice of Special Tax Lien for each of the Improvement Areas to be prepared and to be recorded with the County Recorder of the County of Sacramento (the “County Recorder”) in accordance with the provisions of California Streets and Highways Code Section 3117.5 and Section 53338(c) of the Act. Each Amended Notice of Special Tax Lien shall be recorded in the County Recorder’s office within fifteen days of the date of adoption of this resolution.
Section 5. This resolution takes effect when adopted.
ORDINANCE NO.
Adopted by the Sacramento City Council
February 1, 2022
Repealing Ordinance No. 2019-0036 Adopted on October 22, 2019, and Levying Special Taxes Pursuant to Amended and Restated Rates and Methods of Apportionment for Fiscal Year 2021-2022 and Following Fiscal Years Solely Within, and Relating to, Improvement Area No. 1, Improvement Area No. 2 and Improvement Area No. 3 of the Delta Shores Community Facilities District No. 2019-01 (Improvements), City of Sacramento, County of Sacramento, State of California
BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO:
1. On September 24, 2019, the City Council adopted Resolution No. 2019-0371 (the “Resolution of Formation”), thereby establishing the Delta Shores Community Facilities District No. 2019-01 (Improvements), City of Sacramento, County of Sacramento, State of California (the “CFD”) and designating within the CFD “Improvement Area No. 1,” “Improvement Area No. 2,” and “Improvement Area No. 3” (each an “Improvement Area”).
2. Pursuant to Resolution No. 2021-0362, adopted by the City Council on December 14, 2021 (the “Resolution of Consideration”), and Resolution No. 2022-[___], adopted by the City Council on February 1, 2022 (the “Resolution of Change” and, together with the Resolution of Formation and the Resolution of Consideration, the “Resolutions”), the City Council approved amendments to the rates and methods of apportionment of special taxes (each an “Amended and Restated RMA”), changes to the appropriations limits and changes to the authorized amounts of bonded indebtedness in and for each Improvement Area, which changes were approved by elections of the qualified electors within each Improvement Area on January 25, 2022.
3. In accordance with section 53340 of the Government Code (the “Code”), the Resolutions and the Amended and Restated Rate and Method of Apportionment of Special Tax for Improvement Area No. 1 attached as Exhibit A to the Resolution of Consideration (the “Amended and Restated RMA for Improvement Area No. 1”), a special tax is hereby levied on all taxable parcels within Improvement Area No. 1 for the 2021-2022 fiscal year and for all subsequent fiscal years in the amount of the maximum authorized special tax for Improvement Area No. 1 under the Resolutions and the Amended and Restated RMA for Improvement Area No. 1 until collection of such special tax by the City Council, acting solely as the legislative body with respect to the CFD as contemplated by the provisions of the Mello-Roos Community Facilities Act of 1982, set forth at Code sections 53311 through 53368.3 (the “Act”), and not as
the legislative body of the City of Sacramento (the “City”) as a whole, ceases and a notice of cessation of special tax is recorded in accordance with section 53330.5 of the Code. This amount may be adjusted annually, subject to the maximum authorized special tax for Improvement Area No. 1 under the Resolutions and the Amended and Restated RMA for Improvement Area No. 1.
4. In accordance with section 53340 of the Code, the Resolutions and the Amended and Restated Rate and Method of Apportionment of Special Tax for Improvement Area No. 2 attached as Exhibit B to the Resolution of Consideration (the “Amended and Restated RMA for Improvement Area No. 2”), a special tax is hereby levied on all taxable parcels within Improvement Area No. 2 for the 2021- 2022 fiscal year and for all subsequent fiscal years in the amount of the maximum authorized special tax for Improvement Area No. 2 under the Resolutions and the Amended and Restated RMA for Improvement Area No. 2 until collection of such special tax by the City Council, acting solely as the legislative body with respect to the CFD as contemplated by the provisions of the Act, and not as the legislative body of the City as a whole, ceases and a notice of cessation of special tax is recorded in accordance with section 53330.5 of the Code. This amount may be adjusted annually, subject to the maximum authorized special tax for Improvement Area No. 2 under the Resolutions and the Amended and Restated RMA for Improvement Area No. 2.
5. In accordance with section 53340 of the Code, the Resolutions and the Amended and Restated Rate and Method of Apportionment of Special Tax for Improvement Area No. 3 attached as Exhibit C to the Resolution of Consideration (the “Amended and Restated RMA for Improvement Area No. 3”), a special tax is hereby levied on all taxable parcels within Improvement Area No. 3 for the 2021- 2022 fiscal year and for all subsequent fiscal years in the amount of the maximum authorized special tax for Improvement Area No. 3 under the Resolutions and the Amended and Restated RMA for Improvement Area No. 3 until collection of such special tax by the City Council, acting solely as the legislative body with respect to the CFD as contemplated by the provisions of the Act, and not as the legislative body of the City as a whole, ceases and a notice of cessation of special tax is recorded in accordance with section 53330.5 of the Code. This amount may be adjusted annually, subject to the maximum authorized special tax for Improvement Area No. 3 under the Resolutions and the Amended and Restated RMA for Improvement Area No. 3.
6. The City Treasurer or the City Treasurer’s designee (in the instance of the use of debt financing) or the Finance Director or the Finance Director’s designee (when no debt has been issued) is the Manager of the CFD (the “Manager”). The Manager shall serve as the “CFD Administrator” of each Amended and Restated RMA (i.e. as “official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Tax”; section A of each Amended and Restated RMA) with the aid of the
appropriate officers and agents of the City. The Manager is hereby authorized and directed, without further action by the City Council, to do the following:
(a) calculate the appropriate amount of the special tax for each Improvement Area each year (as authorized by, and as provided in, the Resolutions and the applicable Amended and Restated RMA);
(b) prepare the annual special-tax roll for each Improvement Area in accordance with the Resolutions and the applicable Amended and Restated RMA; and
(c) provide to the Sacramento County Auditor-Controller all information in proper form, and in proper time, that is necessary and appropriate to effect the correct and timely billing and collection of the special tax for each Improvement Area on the secured property-tax roll of Sacramento County (the “County”).
7. As provided in section 53340 of the Code, the Resolutions and each Amended and Restated RMA, the special tax for each Improvement Area is to be collected in the same manner and at the same time and to be subject to the same enforcement mechanism and the same penalties and interest for late payment as regular ad valorem taxes, except that the City Council, acting solely as the legislative body with respect to the CFD as contemplated by the provisions of Act and not as the legislative body of the City as a whole, reserves the right to utilize any other lawful means of billing, collecting, and enforcing the special tax within each Improvement Area, including direct billing, supplemental billing, and, when lawfully available, judicial foreclosure of the applicable special-tax lien.
8. The appropriate officers and agents of the City are hereby authorized to make adjustments to the special-tax roll for each Improvement Area before the final posting of the applicable special taxes to the County tax roll each year, as may be necessary to achieve a correct match of the applicable special-tax levy for each Improvement Area with the assessor's parcel numbers used by the County in sending out property-tax bills. The County may deduct its reasonable and agreed-upon charges for collecting the special tax within each Improvement Area from the amounts collected before remitting the special-tax collections to the City.
9. Any property owner may appeal the levy of the special tax within each Improvement Area by filing a written notice of appeal in accordance with section F of the applicable Amended and Restated RMA, each of which is supplemented as follows:
(a) A property owner may file a notice of appeal with the Manager not more than one calendar year after having paid the special tax that is disputed, and the property owner’s failure to do so within that time constitutes a bar to appeal. The notice of appeal must specify in detail the grounds of the
appeal, which are limited to (1) clerical errors in assigning an amount of tax to a parcel and (2) an error in defining the use of a parcel or its classification. No other appeals are allowed.
(b) Not more than 30 days after an appeal is filed, the Manager shall review the appeal, meet with the property owner (if necessary), and mail the property owner a written decision on the appeal. If the Manager finds that the special tax should be modified, then the Manager shall correct the special-tax levy or grant the property owner a credit against the next year's special-tax levy, as appropriate under the circumstances. The Manager's failure to timely mail a written decision will constitute a decision denying the appeal.
(c) If the property owner disagrees with the Manager's decision, and if the property owner is current on payments of the special tax, then the property owner may appeal to the City Council by filing a written notice of appeal with the City Clerk not more than 30 days after the Manager mails the notice of decision or has failed to timely mail a written decision, and the property owner's failure to do so constitutes a bar to further appeal. The notice of appeal must specify in detail the grounds of appeal. The City Council shall, in accordance with chapter 1.24 of the City Code, either hear the appeal itself or refer the appeal to a hearing officer. The hearing on the appeal from the Manager's decision is to be conducted not more than 30 days after the property owner files the appeal with the City Council, and the City Council or the hearing officer, as appropriate, shall mail a written decision to the property owner not more than 30 days after the hearing concludes. The decision of the City Council or the hearing officer will be final for all purposes. The failure of the City Council or the hearing officer to hear the appeal or to render a decision within the specified time will constitute a denial of the appeal.
10. The filing of an appeal under section 9 of this ordinance will not relieve the property owner of the obligation to pay the applicable special tax when due.
11. If for any reason a court with jurisdiction finds any portion of this ordinance to be invalid or finds the applicable special tax for any Improvement Area to be inapplicable to any particular parcel, then the balance of this ordinance and the application of the applicable special tax to the remaining parcels within each Improvement Area will not be affected.
12. Ordinance No. 2019-0036 adopted by the City Council on October 22, 2019, is hereby repealed and superseded in its entirety by this ordinance.