HomeMy WebLinkAboutItem 01 - COUNCIL READING FILE_d_Amended Hearing Report
Amended Hearing Report
City of San Luis Obispo
Community Facilities District
No. 2019-1 (San Luis Ranch)
Prepared for:
City of San Luis Obispo
Prepared by:
Economic & Planning Systems, Inc. (EPS)
March 2021
EPS #181049
Table of Contents
1. INTRODUCTION .................................................................................................... 1
Background ............................................................................................................ 1
Purpose of the CFD ................................................................................................. 1
Organization of the Report ....................................................................................... 3
2. LAND USES ........................................................................................................ 4
3. AUTHORIZED FACILITIES AND ESTIMATED FACILITY COSTS ................................................. 8
Authorized Facilities of the CFD ................................................................................. 8
Authorized Facilities Estimated Costs ....................................................................... 11
4. CFD BOND AUTHORIZATION, ANNUAL SPECIAL TAXES, AND ESTIMATED CFD BONDS ................ 14
CFD Bond Authorization and Funding Strategy .......................................................... 14
Minimum and Maximum Annual Special Tax .............................................................. 14
Estimated CFD Bond Issuance and Net Bond Proceeds ................................................ 18
Overall Tax Burden for Single-Family Residential ....................................................... 20
5. STRUCTURE OF THE CFD ....................................................................................... 22
Description of the CFD ........................................................................................... 22
The CFD Funding Program ...................................................................................... 22
Determining the Maximum Annual Special Tax .......................................................... 22
Base Year ............................................................................................................ 22
Annual Tax Escalation Factor .................................................................................. 22
Duration of the Special Tax .................................................................................... 23
Definition of Annual Costs ...................................................................................... 23
Assignment of Maximum Annual Special Tax ............................................................. 25
Workforce/Affordable Units ..................................................................................... 26
Nonresidential Parcels Rezoned to Residential Uses .................................................... 27
Transfer of the Assigned Special Tax ........................................................................ 27
Conversion of a Tax-Exempt Parcel to a Taxable Parcel............................................... 27
Taxable Parcels Acquired by a Public Agency ............................................................. 27
Determination of Parcels Subject to Special Tax ........................................................ 27
Setting the Special Tax Levy for Taxable Parcels ........................................................ 28
Prepayment of the Special Tax Obligation ................................................................. 28
Interpretation, Application, and Appeal of Special Tax Formula and Procedures .............. 29
Manner of Collection .............................................................................................. 29
Exhibits:
Exhibit A: Amended Rate, Method of Apportionment, and Manner of Collection of Special Tax
Exhibit B: List of Authorized Facilities
List of Maps and Tables
Map 1 City of San Luis Obispo CFD No. 2019-1 (San Luis Ranch) Boundary Map ........... 2
Map 2 San Luis Ranch Final Map ............................................................................ 5
Map 3 HDR Development Plan ............................................................................... 6
Table 1 CFD Land Uses .......................................................................................... 7
Table 2 Estimated CFD Costs ................................................................................ 12
Table 3 Assignment of the Special Taxes to Original Parcels—Base Year ...................... 16
Table 4 Assignment of the Special Tax by Tax Category—Base Year ............................ 17
Table 5 Estimated CFD Bonds and Annual Costs at Buildout ....................................... 19
Table 6 Overall Tax Burden for Taxable Parcels ........................................................ 21
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1. INTRODUCTION
Background
The City of San Luis Obispo (City) retained Economic & Planning Systems, Inc. (EPS) to support
its efforts to create a Mello-Roos Community Facilities District (CFD) for the San Luis Ranch
development (Project), located in the San Luis Ranch Specific Plan (SLRSP) area, located west of
US Highway 101 in the southwest quadrant of the City. The CFD was formed in March 2019 to
create a land-secured funding mechanism to help fund construction of authorized facilities of the
CFD. At the time of formation of the CFD, development plans for single-family residential
product were fully developed, but the development plan for multifamily residential uses were still
being evaluated by the developer. In addition, the location and number of affordable housing
units (which are to be tax-exempt under the CFD) were being finalized between the developer
and the City. Collectively, the City Finance Team and development team agreed to initiate a
Change Proceeding for the CFD to amend the Rate and Method of Apportionment to reflect
changes being made to the scope of the special tax related to final taxable unit counts for
multifamily residential and assignment of affordable units to large lot parcels in the Project.
The boundaries of the proposed CFD are coterminous with the SLRSP. Overall, the Project area
includes approximately 131.4 acres approved for up to 580 dwelling units and commercial
development, including a 200-room hotel, 100,000 square feet of office space, and 150,000
square feet of retail and service commercial uses. The Project includes 7.8 acres of parks,
waterways, and other interior open space. There will be 52.3 acres of farmed agricultural land in
the Project area. All Project areas discussed will be included within the boundaries of the CFD.
EPS prepared the “San Luis Ranch Financing Plan” (Financing Plan) in June 2018, which
addressed how the infrastructure needed to serve the Project will be funded. The Financing Plan
identified total infrastructure improvement costs of $54.2 million, of which approximately
$22.8 million is attributable to the Project as a “fair-share” cost allocation for required
infrastructure.
Purpose of the CFD
The CFD is being formed to fund major road improvements, potable and non-potable water
system improvements, drainage system improvements, wastewater system improvements, solid
waste improvements, park and paseo improvements, open space improvements, utilities, and
other authorized facilities under the Mello-Roos Act, serving the Project as a condition of the
City’s approval of the development.
The CFD is authorized to issue up to $25 million in bonds. It is anticipated that more than one
CFD bond issuance will occur as the Project is built out. The developer is seeking the first bond
issuance as soon as possible upon formation of the CFD.
Map 1 shows the proposed boundaries of the CFD.
1050 Southwood Drive
San Luis Obispo, CA 93401
P 805.544.7407 F 805.544.3863 Map 1
City of San Luis Obispo Community Facilities District No. 2019-1 (San Luis Ranch)
Amended Hearing Report March 2021
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Organization of the Report
This report consists of these 5 chapters and 2 exhibits:
Chapter 1 consists of this introduction.
Chapter 2 describes the proposed land uses in the CFD.
Chapter 3 describes authorized facilities to be funded in the CFD, the costs, and the cost
allocations.
Chapter 4 describes the maximum CFD bond authorization and the maximum annual special
tax.
Chapter 5 describes the structure of the CFD.
Exhibit A provides the Amended Rate, Method of Apportionment, and Manner of Collection
of Special Tax (RMA).
Exhibit B provides the List of Authorized Facilities and Services.
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2. LAND USES
The CFD was formed over the entire Project area. The CFD consists of approximately
131.4 acres, with residential uses planned for approximately 31.6 acres, nonresidential
commercial uses planned for approximately 18.5 acres, and the remaining acreage designated
for public uses and local roads. Only residential uses will be taxable under the CFD.
A tentative map was approved for the Project, and a final map for the Project was approved by
the City Council on November 27, 2018. The final map identifies a lot number for all delineated
parcels on the map. Lot numbers shown on the map (see Map 2) are used in the RMA to
identify parcels in the assignment of the special taxes.
Individual lot numbers are provided for each low-density residential (LDR) and medium-density
residential (MDR) use parcel. Lot numbers 1 and 2 on the final map are planned for high-density
residential (HDR) uses. Since the formation of the CFD, the land use plan for HDR land uses on
Lot numbers 1 and 2, as shown on Map 2, have been finalized by the developer.
At formation, 165 “for-sale” HDR units were planned for Lot 1 and 134 “for-rent” units were
planned for Lot 2. The new land use plan established for HDR uses in the CFD recategorizes the
for-sale and for-rent products for HDR uses into three new HDR categories:
Townhomes
Condominiums
Efficiency Units
Lot numbers 1 and 2 shown in Map 2 have been combined and split into 12 new lot numbers, as
shown in Map 3. Table 1 shows the allocation of 296 HDR units over the 12 lot numbers by
HDR category.
Table 1 shows all land uses proposed for inclusion within the boundaries of the CFD. The total
planned residential units are shown for each residential land use category. There are 198 LDR
parcels and 83 MDR parcels identified in the table. Lot number ranges are shown in Table 1 for
each single-family residential use density.
Affordable/workforce units are allocated to each residential category in Table 1. Changes were
made to the total number of such units since the formation of the CFD. Unit counts shown in
Table 1 have now been finalized.
Three parcels are identified as nonresidential uses and will be developed as hotel, commercial,
and office uses. These parcels shall remain tax exempt, unless they become rezoned to for-sale
residential land uses in the future.
1050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863Map 2
Map 3
Table 1
City of San Luis Obispo CFD No. 2019-1 (San Luis Ranch)
CFD Parcels and Land Uses
Land Use Lot No.Acres Units Density
[1]
Residential Uses
Low Density Residential (LDR)11-208 15.51 198 12.77
Medium Density Residential (MDR)220-302 5.14 83 16.15
High Density Residential (HDR) [2]
Townhomes 5-7 3.65 80 21.94
Condominiums 1-2 3.33 96 28.83
Efficiency Units 3-4 1.93 120 62.26
Residential Use Totals 29.55 577
Nonresidential Uses
Commercial 7 11.44
Commercial 8 3.33
Commercial 9 3.81
Nonresidential Use Totals 18.58
Public Uses
Parks 3.19
Open Space 7.81
Agricultural 52.32
Regional Road 9.00
Local Road 8.84
Public Use Totals 81.16
CFD Totals 129.29 577
"cfd_LU"
Source: Cannon
[1] Lot numbers are designated on the final map for the development.
[2] Lot numbers refer to those shown in Map 3.
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3. AUTHORIZED FACILITIES AND ESTIMATED FACILITY COSTS
This chapter describes the authorized facilities eligible to be financed or otherwise funded
through the CFD with the proceeds of CFD bonds and pay-as-you-go revenues from special taxes
levied under the CFD.
Authorized Facilities of the CFD
The CFD is authorized to fund certain facilities required to serve the Project. Authorized facilities
are identified in the List of Authorized Facilities (Exhibit B of this report). Authorized facilities
and certain related incidental expenses are briefly discussed below.
Transportation Improvements
Public roadway and bikeway improvements designed to meet the needs of the Project, including
those improvements identified in the Financing Plan, include:
Item # Item
ROADWAYS
1 Froom Ranch Way (Prado to Oceanaire) Including Bridge
2 Froom Ranch Way (Oceanaire to Target Driveway)
3 Froom Ranch Way & LOVR Intersection Widening
4 Prado Road/US 101 Overpass and North Bound Lanes
5 Prado Road Southbound Ramps
6 Madonna & Dalidio/Prado Intersection Widening
OTHER AREA ROADWAYS (MITIGATIONS)
7 Madonna & SB 101 Off Ramp - Lengthen EB Left Turn Pocket
8 Madonna & Oceanaire Pedestrian X-ing Enhancements
9 Madonna & San Luis Ranch Way Pedestrian X-ing Enhancement
10 LOVR & SB 101 Off Ramp - Lengthen Left Turn Pocket
11 LOVR & Higuera - Lengthen EB Right Turn Pocket
12 Higuera & South - Lengthen NB Right Turn Pocket
OTHER AREA ROADWAY MITIGATIONS - FEE ONLY PROJECTS
13 Prado & Higuera Widening
14 Madonna Rd @ LOVR - Signal Timing Optimization
15 Madonna & Oceanaire Turn Lane Extensions
16 Madonna & LOVR - Turn Lane Extensions
17 LOVR & Auto Park Way Signalization
18 Higuera & Tank Farm - Lengthen NB Right Turn Pocket
SLR BIKEWAYS
19 Prado Road Class I Path (Madonna to Froom)
20 Madonna Road Class I Path / Protected bikeway (Hwy 101 to Oceanaire)
21 Bob Jones Trail (Calle Joaquin to Froom Ranch Road)
SLR BIKEWAYS - FEE ONLY PROJECTS
22 Prado Road Class I Path (NB Ramps to Higuera)
23 Bob Jones Trail (Madonna to Prado)
City of San Luis Obispo Community Facilities District No. 2019-1 (San Luis Ranch)
Amended Hearing Report March 2021
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These are eligible roadway improvements: acquisition of land and easements; roadway design;
project management; geotechnical engineering, testing, and observations; bridge crossings and
culverts; clearing, grubbing, and demolition; grading, soil import/export, paving (including slurry
seal), and decorative/enhanced pavement concrete or pavers; power pole relocations; joint
trenches, underground utilities, and undergrounding of existing utilities; dry utilities and
appurtenances; curbs, gutters, sidewalks, bike trails (including on- and off-site), park and ride
facilities, bus rapid transit improvements, including transfer stations and regional public transit
improvements; retaining walls, sound walls, enhanced fencing, and access ramps; street lights,
signalization, and traffic signal control systems; bus turnouts; signs and striping; erosion control;
median and parkway landscaping and irrigation; entry monumentation; bus shelters; masonry
walls; and other improvements related thereto. Eligible improvements for the roads listed above
also include any and all necessary underground potable and non-potable water, sanitary sewer,
and storm drainage system improvements.
Potable and Non-Potable Water System Improvements
Authorized facilities include any and all on- and off-site backbone water facilities designed to
meet the needs of development of the Project. These facilities include potable and non-potable
mains, valves, services, and appurtenances; wells; and water treatment and storage facilities,
and related improvements, including site clearing, grading, and paving; curbs and gutters;
recycled water storage tanks, booster pump stations, and all appurtenances thereto; wells;
water treatment; stand-by generator; site lighting, drainage, sanitary sewer, and water service;
landscaping and irrigation; access gates and fencing; striping and signage; and these:
Water lines in/associated with authorized facility roads.
Recycled water lines in/associated with authorized facility roads.
Drainage System Improvements
Authorized facilities include any and all on- and off-site backbone drainage and storm drainage
improvements designed to meet the needs of development of the Project. These facilities
include mains, pipelines and appurtenances, outfalls and water quality measures, temporary
drainage facilities, detention/retention basins, and drainage pretreatment facilities; drainage
ways/channels, pump stations, landscaping, and irrigation; access roads, gates, and fencing;
striping and signage; and these:
All storm drain lines and facilities in/associated with authorized facility roadways.
Retention, detention, hydromodification, and other drainage facilities.
Wastewater System Improvements
Authorized facilities include any and all on- and off-site backbone wastewater facilities designed
to meet the needs of development of the Project. These facilities include pipelines and all
appurtenances thereto; manholes; tie-in to existing main line; force mains; lift stations; odor-
control facilities; sewer treatment plant improvements and permitting related thereto; and
related sewer system improvements, including all wastewater facilities in/associated with
authorized facility roadways.
City of San Luis Obispo Community Facilities District No. 2019-1 (San Luis Ranch)
Amended Hearing Report March 2021
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Solid Waste Improvements
Authorized facilities include any and all backbone solid waste improvements designed to meet
the needs of development of the Project.
Park and Landscape Corridor Improvements
Authorized facilities include any and all improvements to parks and landscape corridors located in
the Project.
Open Space Improvements
Authorized facilities include any and all open space improvements designed to meet the needs of
development of the Project, including bike trails, bike/pedestrian bridges, storm drain crossings,
storm drain detention/retention, tree mitigation, agricultural mitigation or wetland mitigation,
property acquisition, endowment payments for open space management, landscaping and
irrigation, access gates and fencing, and related open space improvements.
Utilities
Authorized facilities include any and all on- and off-site utility improvements designed to meet
the needs of development of the Project, including new 24-inch HDPE Sewer Trunk Lines.
All utility improvements, easement payments, and land acquisition not located under or
alongside transportation improvements are considered authorized facilities.
Formation, Administrative, and Incidental Expenses
It is anticipated that the following incidental expenses may be incurred for the CFD:
Engineering services.
Special tax consultant services.
City review and administration.
Bond counsel services and expenses.
Disclosure counsel services and expenses.
Independent municipal advisor services and expenses.
Appraiser services.
Market absorption study and real estate economist services.
Initial bond transfer agent, fiscal agent, and registrar and paying agent fees.
Rebate calculation service set-up charge.
Bond printing.
Offering memorandum printing and mailing costs.
Publishing, mailing, and posting notices.
Underwriter’s discount.
Bond reserve fund.
Capitalized interest.
Bond syndication costs.
Governmental notification and filing costs.
Credit enhancement costs.
City of San Luis Obispo Community Facilities District No. 2019-1 (San Luis Ranch)
Amended Hearing Report March 2021
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Real estate acquisition costs.
Rating agency fees.
Charges and fees of City other than those waived.
Certain annual costs may be included in each annual special tax levy, including these:
Annual bond transfer agent, fiscal agent, registrar, and paying agent fees.
Annual rebate calculation costs.
Special tax consultant costs and administration expenses.
Other necessary consultant costs.
Costs of posting and collecting the special taxes.
Personnel and administrative costs of the City.
Arbitrage rebate.
Continuing disclosure reporting and compliance.
Authorized Facilities Estimated Costs
The Financing Plan for the Project identifies the authorized facilities to be constructed to serve
new development in the CFD. Estimated construction costs for each facility are identified in the
Financing Plan. Cost-sharing assumptions for each facility, with a percentage of the total amount
assigned to either the developer or to the City or regional funding sources, are identified.
Table 2 summarizes costs and cost-sharing allocations shown in the Financing Plan. Total
facility costs are approximately $54.2 million. The developer is assigned an estimated
$22.8 million of the costs, with the remaining $31.4 million assigned to the City or regional
funding sources.
Page 1 of 2Table 2City of San Luis Obispo CFD No. 2019-1 (San Luis Ranch)Estimated CFD Costs (2018$)FacilityItemCostPercentAmountPercentAmountROADWAYSFroom Ranch Way (Prado to Oceanaire) Including Bridge$7,071,277 100% $7,071,277 0%$0Froom Ranch Way (Oceanaire to Target Driveway) $423,561 15% $63,534 85% $360,027Froom Ranch Way & LOVR Intersection Widening$450,000 20% $90,000 80% $360,000Prado Road/US 101 Interchange and North Bound Ramps$25,000,000 28% $7,000,000 72% $18,000,000Prado Road Southbound Ramps$10,000,000 28% $2,800,000 72% $7,200,000Madonna & Dalidio/Prado Intersection Widening$2,000,000 100% $2,000,000 0%$0ROADWAYS, SUBTOTALS$44,944,838$19,024,811$25,920,027OTHER AREA ROADWAYS (MITIGATIONS)Madonna & SB 101 Off Ramp - Lengthen EB Left Turn Pocket$50,000 100% $50,000 0%$0Madonna & Oceanaire Pedestrian X-ing Enhancements$300,000 50% $150,000 50% $150,000Madonna & San Luis Ranch Way Pedestrian X-ing Enhancement$150,000 100% $150,000 0%$0LOVR & SB 101 Off Ramp - Lengthen Left Turn Pocket$250,000 100% $250,000 0%$0LOVR & Higuera - Lengthen EB Right Turn Pocket$25,000 100% $25,000 0%$0Higuera & South - Lengthen NB Right Turn Pocket$250,000 50% $125,000 50% $125,000OTHER AREA ROADWAYS (MITIGATIONS), SUBTOTALS$1,025,000$750,000$275,000OTHER AREA ROADWAY MITIGATIONS - FEE ONLY PROJECTSPrado & Higuera Widening$750,000 10% $75,000 90% $675,000Madonna Rd @ LOVR - Signal Timing Optimization$2,500 0% $0 100% $2,500Madonna & Oceanaire Turn Lane Extensions$25,000 100% $25,000 0%$0Madonna & LOVR - Turn Lane Extensions$25,000 100% $25,000 0%$0LOVR & Auto Park Way Signalization$200,000 11% $22,000 89% $178,000Higuera & Tank Farm - Lengthen NB Right Turn Pocket$850,000 5% $42,500 95% $807,500OTHER AREA ROADWAY MITIGATIONS - FEE ONLY PROJECTS, SUBTOTALS$1,852,500$189,500$1,663,000SLR BIKEWAYSPrado Road Class I Path (Madonna to Froom)$1,500,000 100% $1,500,000 0%$0 Madonna Road Class I Path / Protected bikeway (Hwy 101 to Oceanaire)$800,000 60% $480,000 40% $320,000Bob Jones Trail (Calle Joaquin to Froom Ranch Road)$1,000,000 16% $160,000 84% $840,000SLR BIKEWAYS, SUBTOTALS$3,300,000$2,140,000$1,160,000Developer/CFD ShareCity/Regional SharePrepared by EPS 3/18/2021Z:\Shared\Projects\SAC\182000\181049 San Luis Ranch CFD\Models\181049 model 612
Page 2 of 2Table 2City of San Luis Obispo CFD No. 2019-1 (San Luis Ranch)Estimated CFD Costs (2018$)FacilityItemCostPercentAmountPercentAmountDeveloper/CFD ShareCity/Regional ShareSLR BIKEWAYS - FEE ONLY PROJECTSPrado Road Class I Path (NB Ramps to Higuera)$500,000 28% $140,000 72% $360,000Bob Jones Trail (Madonna to Prado)$1,500,000 3% $45,000 97% $1,455,000SLR BIKEWAYS - FEE ONLY PROJECTS, SUBTOTALS$2,000,000$185,000$1,815,000UTILITIESInstall new 24" HDPE Sewer Line$1,078,700 50% $539,350 50% $539,350COST TOTALS$54,201,038$22,828,662$31,372,377"cfd_costs"Source: City Staff Regional Infrastructure database, dated October 9, 2017, with agreed-on costs for the Prado Road/US 101 Interchange (Item #4) and the Bob Jones Trail (Item #21). Prepared by EPS 3/18/2021Z:\Shared\Projects\SAC\182000\181049 San Luis Ranch CFD\Models\181049 model 613
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4. CFD BOND AUTHORIZATION, ANNUAL SPECIAL TAXES, AND
ESTIMATED CFD BONDS
This chapter will discuss the maximum CFD bond authorization and maximum annual special
taxes as proposed by the developer for each taxable land use type. Special taxes of the CFD will
be one of the funding sources for construction of authorized facilities. The City and the
developer entered into a Development Agreement (DA), identifying funding options for
authorized facilities, which included CFD special taxes and CFD bond proceeds.
CFD Bond Authorization and Funding Strategy
The DA authorized the use of the CFD to fund authorized facilities of the CFD and outlined a basic
structure for the CFD. The DA identified the following sources of potential funding for authorized
facilities of the CFD:
CFD bond proceeds.
CFD pay-as-you-go revenues.
Owner equity/private financing.
Each funding source will be discussed below.
Maximum CFD Bond Authorization
The CFD is authorized to issue up to $25 million in bonds. The property owner is anticipated to
ask the City to sell the first series of bonds as soon as possible following formation of the CFD.
Depending on market conditions and the structure of the first series of CFD bonds, a second
series of CFD bonds may be issued following the first CFD bond sale.
CFD Pay-As-You-Go
Special taxes levied and not needed to fund CFD bond debt service or City administration of the
CFD may be used for pay-as-you-go expenditures for authorized CFD facilities not reimbursed
with CFD bond proceeds. As memorialized in the DA, the City has agreed to provide pay-as-you-
go funding to the developer for the first 20 years of the CFD.
Owner Equity/Private Financing
To the extent there are any shortfalls in the funding sources for authorized facilities, owner
equity or private financing will be used to fund construction of such facilities.
Minimum and Maximum Annual Special Tax
A minimum annual special tax and a maximum annual special tax are assigned to all taxable
parcels at formation of the CFD. The minimum annual special tax is assigned to taxable
residential parcels at formation based on land use densities (LDR, MDR, and HDR). The
City of San Luis Obispo Community Facilities District No. 2019-1 (San Luis Ranch)
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developer has requested a special tax structure that assigns a maximum annual special tax on
residential units based on building square footage ranges once the building permit is issued for
such uses.
The special tax assignments are discussed below.
Minimum Annual Special Tax
The minimum annual special tax is assigned to all taxable parcels at formation of the CFD. The
sum of the minimum annual special tax for all taxable parcels is the minimum amount of special
tax that can be levied against taxable parcels at CFD formation.
Each single-family land use category is assigned a minimum annual special tax per parcel for
LDR and MDR uses. LDR uses are assigned a minimum annual special tax per unit of $2,630.
MDR uses are assigned a minimum annual special tax per unit of $2,150. Table 3
(Attachment 1 of the RMA) shows the assignment of the minimum annual special tax to taxable
parcels.
The minimum annual special tax for HDR uses have been revised under an amended RMA. Each
tax category under HDR uses (Townhomes, Condominiums, and Efficiency Units) have unique
minimum annual special taxes assigned by category. Townhomes are assigned an initial
minimum annual special tax of $1,910, condominiums are assigned a minimum annual special
tax of $1,600, and efficiency units are assigned a minimum annual special tax of $1,199.
Under the previous RMA, for-rent HDR units were not assigned a minimum annual special tax.
Under the amended RMA, all categories of HDR uses have an assigned minimum annual special
tax.
Maximum Annual Special Tax
The maximum annual special tax is assigned to taxable parcels upon issuance of the building
permit for residential uses. Each single-family tax category (LDR and MDR) is assigned a
maximum annual special tax rate based on the range of building square footage sizes of homes
being built (see Table 3; Attachment 1 of the RMA).
LDR parcels are assigned a maximum annual special tax that is equal to the assigned minimum
annual special tax in the building permit for the LDR parcel for a structure of less than
1,850 building square feet ($2,630). If the home size is 1,850 building square feet or greater,
the maximum annual special tax is $3,110. Table 3 shows that 94 lots are planned for smaller
product and 98 lots are planned for larger product. These assumptions are used to derive the
maximum annual special tax of $552,000 for LDR parcels at buildout. The mix of residential unit
sizes may vary from the numbers shown in Table 3, resulting in a lower or higher total
maximum annual special tax for LDR parcels at buildout.
Table 3
City of San Luis Obispo CFD No. 2019-1 (San Luis Ranch)
Assignment of the Special Taxes to Original Parcels - Base Year
Maximum Annual
Minimum Minimum Special Tax
Annual Annual For Developed Maximum Annual
Original Special Tax Special Tax Parcels Special Tax
Parcel Tax Categories Acres Units per Unit/Acre per Tax Category per Unit/Acre per Tax Category
[1] [2][1]
067-121-022 Residential Uses per Unit per Unit
Low Density Residential (LDR)15.51
1,850 sq. ft. and greater 98 $2,630 $257,740 $3,110 $304,780
Less than 1,850 sq. ft.94 $2,630 $247,220 $2,630 $247,220
Workforce/Affordable Units [3]6 $0 $0 $0
LDR Subtotal 198 $504,960 $552,000
Medium Density Residential (MDR)5.14
1,600 sq. ft. and greater 44 $2,150 $94,600 $2,630 $115,720
Less than 1,600 sq. ft.33 $2,150 $70,950 $2,150 $70,950
Workforce/Affordable Units [3]6 $0 $0 $0
MDR Subtotal 83 $165,550 $186,670
High Density Residential (HDR) - For Sale [2]
Townhomes per Unit per Unit
Lot 5 0.32 8 $1,910 $15,280 $1,910 $15,280
Lot 6 1.66 36 $1,910 $68,760 $1,910 $68,760
Lot 7 1.67 34 $1,910 $64,940 $1,910 $64,940
Workforce/Affordable Units [3]2 $0 $0 $0 $0
Condominiums
Lot 1 1.98 60 $1,600 $96,000 $1,600 $96,000
Lot 2 1.35 34 $1,600 $54,400 $1,600 $54,400
Workforce/Affordable Units [3]2 $0 $0 $0 $0
Efficiency Units
Lot 3 1.79 100 $1,199 $119,900 $1,199 $119,900
Lot 4 0.14 14 $1,199 $16,786 $1,199 $16,786
Workforce/Affordable Units [3]6 $0 $0 $0 $0
HDR Subtotal 8.90 296 $436,066 $436,066
Residential Use Totals 29.55 577 $1,106,576 $1,174,736
Nonresidential Uses per Acre per Acre
Commercial
Lot 7 Nonresidential Use 11.44 $0 $0 $0 $0
Lot 8 Nonresidential Use 3.33 $0 $0 $0 $0
Lot 9 Nonresidential Use 3.81 $0 $0 $0 $0
Nonresidential Use Totals 18.58
Public Uses
Parks 3.19 $0 $0 $0 $0
Open Space 7.81 $0 $0 $0 $0
Agricultural 52.32 $0 $0 $0 $0
Regional Road 9.00 $0 $0 $0 $0
Local Road 8.84 $0 $0 $0 $0
Public Use Totals 81.16 $0
Totals 129.29 $1,106,576 $1,174,736
"att1"
[1] The Minimum Annual Special Tax and Maximum Annual Special Tax per Unit/Acre are increased by 2% annually following the Base Year (FY 2018-19).
[2] The Minimum Annual Special Tax for Final Map Parcels is equal to the Maximum Annual Special Tax assigned to a Tax Category and Building Square Footage range.
[3] If there are a greater number of Workforce/Affordable Units Building Permits issued within a Tax Category (LDR, MDR, or HDR), the Administrator shall require the full
Prepayment of the Maximum Annual Special Tax for each such Unit constructed.
Lot Numbers
11 to 208
Lot Numbers
220 to 302
Minimum Annual Special Tax Maximum Annual Special Tax
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Table 4
City of San Luis Obispo CFD No. 2019-1 (San Luis Ranch)
Assignment of the Special Tax by Tax Category - Base Year
Minimum Maximum
Annual Annual
Special Tax Special Tax
Tax Category per Unit per Unit/Acre
[1][1]
Residential Uses per Unit per Unit
Low Density Residential (LDR)
1,850 sq. ft. and greater $2,630 $3,110
Less than 1,850 sq. ft.$2,630 $2,630
Workforce/Affordable Units $0 $0
Medium Density Residential (MDR)
1,600 sq. ft. and greater $2,150 $2,630
Less than 1,600 sq. ft.$2,150 $2,150
Workforce/Affordable Units $0 $0
High Density Residential (HDR) - For Sale [2]
For-Sale Multifamily
Townhomes $1,910 $1,910
Condominiums $1,600 $1,600
Efficiency Units $1,199 $1,199
Workforce/Affordable Units $0 $0
For-Rent Multifamily $0 $0
Nonresidential Uses per Acre per Acre
Commercial $0 $0
Office $0 $0
Hotel $0 $0
"att_2"
[1] The Minimum Annual Special Tax and Maximum Annual Special Tax per Unit/Acre are
increased by 2% annually following the Base Year (FY 2018-19).
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MDR parcels are assigned a maximum annual special tax that is equal to the assigned minimum
annual special tax in the building permit for the MDR parcel for a structure of less than
1,600 building square feet ($2,150). If the home size is 1,600 building square feet or greater,
the maximum annual special tax is $2,630. These assumptions are used to derive the maximum
annual special tax of $186,670 for MDR parcels at buildout. The mix of residential unit sizes may
vary from the numbers shown in Table 3, resulting in a lower or higher total maximum annual
special tax for MDR parcels at buildout.
HDR parcels are assigned a maximum annual special tax that is the same as the minimum
annual special tax by HDR tax categories, regardless of unit size. This change was made to the
RMA to establish a fixed amount of special tax revenue for HDR uses. The changes made to the
RMA establishes both a minimum and a maximum annual special tax revenue for HDR uses of
$436,066 in the base year of the CFD, as defined in the RMA.
Affordable/workforce units are tax-exempt under the RMA.
Estimated CFD Bond Issuance and Net Bond Proceeds
The DA specified that the City would allow for the formation of a CFD that could generate
approximately $17 million in net construction proceeds, based on the assigned special tax rates
to all taxable parcels. Table 3 shows a maximum annual special tax of $1,174,736 at buildout
using the assumed number of structure sizes by tax category.
It is estimated that the bond market may require the issuance of two series of bonds because an
initial bond issuance could be structured based on minimum assumptions of available special tax
revenues, with a second issuance structured on the available total special tax revenues at or
near buildout of taxable parcels in the CFD.
For illustration purposes, EPS has developed an estimate of total CFD bonds and net construction
proceeds, assuming the maximum annual special tax revenues, as shown in Table 3, are
available in the initial year to fund debt service and other associated costs involved in the
issuance of a single series of CFD bonds.
Table 5 shows the assumed maximum annual special tax of $1,174,736 from Table 3 and the
resulting total CFD bonds and net construction proceeds under 3 interest rate scenarios. Under
these assumptions, total bonds range from approximately $17.1 million to $19.1 million in total
CFD bonds, with approximate net construction proceeds ranging from $17.4 million to
$19.6 million.
Market conditions at the time of each bond issuance and the ultimate maximum annual special
tax derived from all units (based on building square foot size) will determine the total amount of
CFD bonds and net construction proceeds that will be available to fund authorized facilities and
costs of the CFD.
Table 5City of San Luis Obispo CFD No. 2019-1 (San Luis Ranch)Estimated CFD Bonds and Annual Costs with No Developed Units (2020 Dollars)ItemAssumptionsScenario 1 Scenario 2 Scenario 3Assumptions [1]Interest Rate4.50%5.00%5.50%Term30 years 30 years 30 yearsAnnual Tax Escalation [2]2.00%2.00%2.00%Capitalized Interest121212Estimated Maximum Annual Special TaxEstimated Maximum Annual Special Tax [3]$1,174,736 $1,174,736 $1,174,736Less CFD Administration Costs3.00%($35,242) ($35,242) ($35,242)Less CFD Special Tax Coverage of Bonds10.00%($117,474) ($117,474) ($117,474)Adjusted Maximum Annual Special Tax$1,022,020$1,022,020$1,022,020Estimated CFD Bonds and CFD Bond ProceedsAdjusted Maximum Annual Special Tax$1,022,020$1,022,020$1,022,020Estimated Total CFD Bonds$19,100,000$18,100,000$17,100,000Adjustment of CFD Bonds for Escalating Debt Service [2]20.00%$3,820,000$3,620,000$3,420,000Estimated Total Bond Issuance$22,920,000$21,720,000$20,520,000Less Capitalized Interest($859,500) ($905,000) ($940,500)Less Bond Reserve Fund($1,910,000) ($1,810,000) ($1,710,000)Less Cost of Issuance 3.0% ($573,000) ($543,000) ($513,000)Total Estimated Bond Proceeds$19,577,500$18,462,000$17,356,500"bond"Source: EPS. term could be 25 to 30 years or more. This analysis is based on an assumed 30 years. [2] With an annual special tax escalation factor of 2%, EPS assumes approximately 20% more total bonds may be issued.[3] Assumes FY 2020-21 Minimum Annual Special Tax Revenues. This assumes there are no "Developed Parcels' at the time of the bondissuance.Estimated Bonds and Bond Proceeds [1] Estimated bond sizing based on conservative assumptions. The interest rate will be determined at the time of bond sale; the bond Prepared by EPS 3/18/2021Z:\Shared\Projects\SAC\182000\181049 San Luis Ranch CFD\Models\181049 model 619
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Maximum annual special taxes are increased 2 percent annually. This escalation of the special
tax revenue will add to the bonding capacity of the CFD if bonds are issued beyond the initial
years.
Overall Tax Burden for Single-Family Residential
City policies stipulate that the overall tax burden after formation of a CFD not exceed
1.95 percent of the estimated sales price of a single-family residential home. Estimated sales
prices of residential homes were provided by The Gregory Group in the market absorption study
prepared in December 2020. Table 6 shows the estimated total effective tax rate for
prototypical uses in the CFD. The test includes all current ad valorem property taxes and the
CFD special tax. Three different residential products are shown in Table 6:
LDR.
MDR.
HDR.
The maximum annual special tax rates were escalated to Fiscal Year (FY) 2020-21 values for
each land use category. Ad valorem property tax rates were derived from copies of the
FY 2020-21 property tax bills. The overall tax burden for single-family residential homes
proposed for the CFD ranges from 1.36 percent to 1.46 percent.
The overall tax burden does not include Homeowner Association dues that may be applicable.
Table 6City of San Luis Obispo CFD No. 2019-1 (San Luis Ranch)Overall Tax Burden for Taxable ParcelsItemHDRMDRLDREstimated Home Price [1]$650,000$773,900$800,000Homeowner's Exemption($7,000)($7,000)($7,000)Assessed Value$643,000$766,900$793,000Ad Valorem Property Taxes [2]Proposition 13 Property Tax1.00000% $6,430 $7,669 $7,930State Water Project0.00400% $26$31$32SL Coastal 2014 GO Bond0.03900% $251$299$309Cuesta CCD 2014 GO Bond0.01925%$124$148$153Total Ad Valorem Property Taxes1.06225%$6,830$8,146$8,424Direct ChargesMax Tax CFD No. 2019-1 (San Luis Ranch) [3]$1,987$2,736$3,236Special taxes or Assessments for Services [4]$0$0$0Total Ad Valorem Taxes and Direct Charges$8,817$10,883$11,659Total Tax Burden1.36%1.41%1.46%"tax_burden"[1] From The Gregory Group, market absorption study, December 2020.[2] Tax rates as shown on FY 2020-21 property tax bill for master parcel.[3] Maximum annual special tax rates escalated to FY 2020-21 amounts.[4] Maintenance costs associated with the development will be funded by a HOA. The HOA dues are not considered as part of the overall tax burden for CFD parcels but should be Prepared by EPS 3/25/2021Z:\Shared\Projects\SAC\182000\181049 San Luis Ranch CFD\Models\181049 model 621
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5. STRUCTURE OF THE CFD
Description of the CFD
The CFD was formed to fund a portion of the required infrastructure and other facilities, both
local and regional, that will serve the Project. The City, at the request of the developer, has
initiated a Change Proceeding for the CFD to amend the RMA to change special tax rates for HDR
units and to update assigned affordable/workforce unit counts for tax categories. The changes
will result in greater available special tax revenues based on requested amendments. The
amended RMA will also provide greater secured special tax revenue amounts for “undeveloped”
parcels.
The attached exhibits are documents contained in the Resolution of Formation (ROF) of the CFD.
Exhibit A is the CFD RMA. Exhibit B is the List of Authorized Facilities.
The CFD Funding Program
The CFD will be authorized to levy and collect the special tax to pay all annual costs of the CFD,
including funding for authorized facilities not funded through CFD bond proceeds, which is
anticipated to be paid on a pay-as-you-go basis, during the first 20 years of the special tax levy.
Determining the Maximum Annual Special Tax
The minimum annual special tax and the maximum annual special tax rates for the various tax
categories were developed to provide sufficient funding for a targeted total amount of CFD
bonds, while adhering to target overall tax burdens of approximately 1.5 percent of the
estimated sales prices for residential units in the CFD. CFD funding public infrastructure for
residential developments is new to the City and the housing markets in the region. The overall
tax burden targets for the CFD were purposely adhered to with consideration to these factors.
Table 3 shows the minimum annual special tax and maximum annual special tax rates by tax
category for the special tax. Maximum annual special tax rates are further defined by tax
category based on the building square footage of the homes to be built.
Base Year
The base year is FY 2018-19. A base year is defined in the RMA as a means of defining the
special tax base in a given fiscal year that is allowed to increase by a given factor over a period
of time.
Annual Tax Escalation Factor
The administrator will increase the minimum annual special tax and maximum annual special tax
by the tax escalation factor in all fiscal years following the base year. The tax escalation factor is
2 percent.
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Duration of the Special Tax
The special tax may be levied and collected until FY 2062-63. The special tax may be collected
for as long as it is needed to pay annual costs of the CFD.
Definition of Annual Costs
The special taxes established under the RMA represent the maximum exposure to an annual
special tax levy for a given parcel of land. The actual amount of the levy is derived through
determining the “annual costs” of the CFD. The RMA identifies the annual costs components as
follows:
a. Administrative expenses for such fiscal year.
b. Debt service to be paid from special taxes during the bond year commencing during such
fiscal year.
c. The amount needed to pay other periodic costs on the bonds, including credit enhancement
and any rebate payments on the bonds.
d. The amount needed to replenish the reserve fund for the bonds to the level required under
the bond indenture, to the extent not included in a computation of annual costs in a previous
fiscal year.
e. The amount needed to (1) cure any delinquencies in the payment of principal or interest on
bonds, which have occurred in the prior fiscal year, to the extent not otherwise included in a
computation of annual costs in the current or any previous fiscal year, and (2) to fund any
foreseeable deficiency of the amount to be available for the payment of principal or interest
on bonds, which are expected to occur in such fiscal year, to the extent not included in a
computation of annual costs in the current or any previous fiscal year.
f. The amount needed to (1) cure any delinquencies in the payment of the special tax in the
prior fiscal year, to the extent not otherwise included in a computation of annual costs in the
current or any previous fiscal year, and (2) to fund any foreseeable deficiency in the payment
of the special tax for that fiscal year which is expected to occur in such fiscal year, to the
extent not included in a computation of annual costs in the current or any previous fiscal
year.
g. Costs of acquisition, construction, and improvements of authorized facilities to be funded on
a pay-as-you-go basis, in amounts determined by the administrator.
h. Less any capitalized interest and any credits provided under a bond indenture.
i. Less any available earnings on the reserve fund, special tax funds, available capitalized
interest, or any other available revenues of the CFD or the City that may be used to fund
annual costs, to the extent determined by the administrator.
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Administrative Expenses
Administrative expenses of the CFD are the reasonable costs of administering the CFD each fiscal
year. Examples of administrative expenses are costs of computing facilities special taxes and
preparing annual facilities special taxes collection schedules; costs of collecting the facilities
special taxes; costs of remitting the facilities special taxes to the trustee; costs of the trustee
(including its legal counsel) in the discharge of the duties required of it under the bond
indenture; costs to the City, the CFD, or their designees of complying with arbitrage rebate
requirements; costs of complying with the City, the CFD, or obligated persons disclosure
requirements; costs associated with preparing special taxes disclosure statements; costs
incurred in responding to public inquiries regarding the facilities special taxes; costs related to
any appeal of the facilities special taxes; and amounts advanced or estimated to be advanced by
the City for any other administrative purposes, including attorney’s fees and other costs related
to collection of the facilities special taxes and commencing and pursuing to completion any
foreclosure of delinquent special taxes.
Debt Service
Debt service would be that portion of the special tax levy required to pay a parcel’s share of the
debt service. The proposed financing structure of the CFD anticipates that up to two series of
CFD bonds may be issued.
Periodic Costs of Bonds
A portion of the annual special tax levy that may be needed to pay other periodic costs on the
bonds, including credit enhancement and any rebate payments on the bonds.
Amount Needed to Replenish Reserve Fund
In the event the reserve fund is drawn on to pay debt service or expenses of the CFD, a facilities
special tax may be levied to replenish the bond reserve fund to required funding levels.
A facilities special tax should be levied once for each draw on the bond reserve fund, to the
extent the bond reserve fund can be brought back to required funding levels with just one such
levy. If for any reason the bond reserve fund remains underfunded in a fiscal year following the
fiscal year in which facilities special taxes were levied to replenish it, a second facilities special
tax levy should not be required to replenish the bond reserve fund.
Amounts for Unpaid Principal and Interest
The RMA allows for the levy of a special tax to fund costs of unpaid principal and interest from a
previous fiscal year or to fund anticipated principal and interest that may occur in the current
fiscal year for which special taxes are being levied. To the extent an amount is levied for a past
delinquency, a second special tax levy should not be levied for a principal and interest payment
delinquency that has already been accounted for in a previous year special tax levy.
Amounts for Unpaid Facilities Special Taxes and Anticipated Delinquencies
The RMA allows for the levy of a special tax to fund costs of unpaid special taxes from a previous
fiscal year or to fund anticipated special tax delinquencies that may occur in the current fiscal
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year for which special taxes are being levied. To the extent an amount is levied for a past
delinquency, a second special tax levy should not be levied for a special tax delinquency that has
already been accounted for in a previous year special tax levy.
Generally, special taxes eventually are brought current, either through payment by a property
owner or through judicial foreclosure proceedings. When special tax installments are paid
current, the amount needed to fund debt service and CFD administration will have been collected
for previous years, including additional amounts that were needed only to cover delinquencies
that are now current. As such, these additional amounts should be considered as being available
by the CFD to fund annual costs in the following fiscal year.
Authorized Facilities Funded on a Pay-As-You-Go Basis
During the first 20 years, the DA entitles the developer to use pay-as-you-go revenues to fund
authorized facilities. As such, special tax revenues not needed to pay debt service during the
first 20 years of the special tax levy may be used to fund authorized CFD costs not otherwise
funded with CFD bond proceeds.
Earnings on Reserve Funds, Special Tax Funds, and Other Funds
All interest earnings on bond reserve funds, facilities special tax funds, or other funds should be
used to offset annual costs when determining the amount required for the annual facilities
special tax levy. To the extent it is available, capitalized interest funding by the CFD bonds will
be used to fund debt service initially.
Assignment of Maximum Annual Special Tax
Sections 4 and 5 of the RMA describe in detail the precise method for assigning the minimum
annual special tax and maximum annual special tax to parcels in the CFD. The RMA assigns a
total minimum annual special tax and maximum annual special tax to taxable parcels based on
parcel configurations at the time of formation of the CFD and then as subdivision maps are
recorded.
A final map has been approved by the City Council that delineates all single-family residential
lots and shows larger lots designated for HDR and nonresidential uses. This map has not been
recorded at this time.
Original Parcels
Original parcels are assigned a minimum annual special tax and maximum annual special tax
using Attachment 1 of the RMA. Attachment 1 (Table 3 of this document) shows the total
minimum annual special tax and maximum annual special tax per unit or per acre for each of the
original parcels.
Successor Parcels
Successor parcels are created when original parcels are subdivided by the recording of large lot
subdivision maps or other parcel reconfigurations, such as through a lot line adjustment, and
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further subdivided into buildable residential lots. The RMA provides specific detail and definitions
used in allocating the minimum annual special tax and maximum annual special tax to parcels as
parcel configurations change.
Attachment 1 of the RMA (Table 3 of this document) shows the minimum annual special tax
and maximum annual special tax for lots planned for each tax category. Attachment 1 also
shows the number of planned units in each tax category that are assigned a maximum annual
special tax based on building square footage of a home after issuance of the building permit.
Each tax category assigns two different maximum annual special tax rates for parcels based on
the home sizes.
Each tax category also shows the number of planned units that will be designated as
workforce/affordable units. These parcels or residential units are to be exempt from the special
tax, but only up to the number of parcels or residential units shown for each tax category.
If fewer units are realized at recordation of a final map defining buildable lots than shown in
Table 3, the minimum annual special tax and maximum annual special tax for the tax category,
the minimum annual special tax and maximum annual special tax rates are increased
proportionately until the special tax revenues from all taxable parcels is equal to the amounts
shown for the tax category in Table 3. If more residential units are created by recording of a
final map than shown in Table 3, the minimum annual special tax and maximum annual special
tax per unit is that amount shown in Table 3.
The RMA is structured to ensure that the minimum annual special tax for a tax category is not
reduced over time by anticipated development of each tax category. The maximum annual
special tax revenue ultimately will be determined by the size of the housing units constructed on
taxable parcels.
Developed Parcels
Parcels become classified as “developed parcels” upon issuance of the building permit for a
residential unit. The maximum annual special tax is assigned to a single-family parcel or HDR
unit based on the building square footage range shown in the initial building permit. The RMA
does not consider building permits for future additions to a home when assigning the maximum
annual special tax.
Because it is uncertain how many homes will be constructed in each house size range under each
tax category, the total amount of maximum annual special tax available from all taxable parcels
will be unknown until all planned residential units have had building permits issued for
construction.
Workforce/Affordable Units
The RMA recognizes workforce/affordable housing units to be built in the CFD. These units are
considered tax exempt. Each tax category (LDR, MDR, and HDR) has several such units
assigned to the category. If more such units are constructed in a tax category, those units
constructed above the designated number of workforce/affordable units will be considered tax
exempt. If fewer taxable units are created as result of an increase in the number of tax-exempt
affordable/workforce units, the minimum and maximum annual special tax per unit will be
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increased on remaining taxable units until the total special tax revenue for a tax category is
equal to the amounts shown in Table 3 (Attachment 1 of the RMA).
Nonresidential Parcels Rezoned to Residential Uses
Nonresidential parcels shown in Table 3 are tax exempt at formation of the CFD. If these
parcels are rezoned to residential uses, the minimum annual special tax and the maximum
annual special tax will be assigned to taxable residential uses using the provisions of Sections 4
and 5 of the RMA.
Transfer of the Assigned Special Tax
The City may, in its sole discretion, allow for a transfer of the minimum annual special tax and
the maximum annual special tax from one large lot parcel to another. Such a transfer will be
allowed only if (1) all adjustments are agreed to in writing by the affected property owners and
the Finance Director and (2) there is no reduction in the CFD minimum annual special tax and
maximum annual special tax revenues as a result of the transfer. Provisions for such a transfer
are discussed in Section 4.f of the RMA.
Conversion of a Tax-Exempt Parcel to a Taxable
Parcel
If a tax-exempt parcel is not needed for public use or other nontaxable use and is converted to a
taxable use or transferred to a private owner, it will become subject to the special tax. The
maximum annual special tax for the newly assigned tax category for such a parcel is determined
using the provisions of Sections 4 and 5 of the RMA.
Taxable Parcels Acquired by a Public Agency
A taxable parcel that is acquired by a public agency after the CFD is formed will remain subject
to the applicable special tax unless the special tax obligation is satisfied pursuant to
Section 53317.5 of the Government Code. An exception to this may be made if a public parcel,
such as a school site, is relocated to a taxable parcel, in which case, the previously tax-exempt
parcel of comparable acreage becomes a taxable parcel and the maximum annual special tax
from the previously taxable parcel is transferred to the new taxable parcel. This trading of a
parcel from a taxable parcel to a public parcel will be permitted to the extent there is no net loss
in maximum CFD special tax revenue and the transfer is agreed to by the owners of the parcels
involved in the transfer and the Finance Director.
Determination of Parcels Subject to Special Tax
By June 30 of each fiscal year, using the definitions in Section 2 of the RMA, the parcel records
of the assessor’s secured tax roll as of January 1, and other City development approval records,
the administrator will cause:
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1. Each parcel to be classified as a taxable parcel or a tax-exempt parcel.
2. Each parcel to be classified as a developed parcel, a final map parcel, or an undeveloped
parcel.
Setting the Special Tax Levy for Taxable Parcels
To determine the annual levy, the administrator will use the process presented in Section 7 of
the RMA. In general, the provisions of Section 7 describe the following procedures to set the
annual facilities special tax levy for each taxable parcel:
First, the administrator must compute the annual costs using the definitions in Section 2 of
the RMA.
Next, the administrator will levy the special tax proportionately on all developed parcels, up
to the amount of annual costs or 100 percent of the maximum annual special tax for
developed property, whichever is less.
If additional revenue is needed for annual costs, the administrator will levy the special tax
proportionately on all final map parcels, such that when added to the levy on developed
parcels, is up to the amount of annual costs or up to 100 percent of the maximum annual
special tax for final map parcels, whichever is less.
If additional revenue is needed for annual costs, the administrator will levy the special tax
proportionately on all undeveloped parcels, such that when added to the levies on parcels
described above, is up to the amount of annual costs or up to 100 percent of the maximum
annual special tax for undeveloped parcels, whichever is less.
Once the special tax levy is determined for a fiscal year, the administrator creates the tax
schedule to deliver to the County Auditor-Controller.
Prepayment of the Special Tax Obligation
For residential uses, a property owner may at any time prepay 50 percent, but not more or less
than 50 percent, of the maximum annual facilities special tax. Full prepayment is permissible for
nonresidential use parcels. In addition to the above, full or partial prepayment is permitted only
under the following conditions:
The landowner prepaying the special tax on a parcel has paid any delinquent special tax and
penalties on that parcel before prepayment.
Following prepayment, amounts in the reserve fund are equal to or greater than the reserve
fund requirement.
The City determines the prepayment will not jeopardize its ability to make timely payments
of debt service and maintain a 110 percent annual debt service coverage based on maximum
annual special tax revenues in all years in which issued bonds will be outstanding.
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The full and partial prepayment calculations are described in detail in Section 7 of the RMA.
Partial prepayments also must account for collection of any development impact fee deferral for
a given parcel.
Interpretation, Application, and Appeal of Special
Tax Formula and Procedures
Any taxpayer who feels the amount of the special tax assigned to a parcel is in error may file a
notice with the administrator appealing the levy of the special tax. The administrator then will
promptly review the appeal and, if necessary, meet with the applicant. If the administrator
verifies the tax should be modified or changed, the special tax levy will be corrected and, if
applicable in any case, a refund will be granted.
Interpretations may be made by resolution of the City Council for purposes of clarifying any
vagueness or ambiguity as it relates to the special tax rate, the method of apportionment, the
classification of properties, or any definition applicable to the CFD.
Without City Council approval, the administrator may make minor, non-substantive
administrative and technical changes to the provisions of the RMA that do not materially affect
the rate, the method of apportionment, or the manner of collection of the special tax for
purposes of the administrative efficiency or convenience or to comply with new applicable
federal, state, or local law.
Manner of Collection
The special tax will be collected in the same manner and at the same time as ad valorem
property taxes. As specified in Section 9 of the RMA, the administrator or their designee may
directly bill the special tax and may collect the special tax at a different time, such as on a
monthly or other periodic basis, or in a different manner, if necessary, to meet the City’s
financial obligations.
EXHIBITS:
Exhibit A: Amended Rate, Method of
Apportionment, and Manner of
Collection of Special Tax
Exhibit B: List of Authorized Facilities
EXHIBIT A:
Amended Rate, Method of Apportionment, and
Manner of Collection of Special Tax
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City of San Luis Obispo
Community Facilities District No. 2019-1 (San Luis Ranch)
San Luis Obispo County, California
AMENDED AND RESTATED RATE, METHOD OF APPORTIONMENT, AND
MANNER OF COLLECTION OF SPECIAL TAX
1. Basis of Special Tax Levy
A Special Tax authorized under the Mello-Roos Community Facilities Act of 1982 (Act) applicable
to the land in the City of San Luis Obispo Community Facilities District No. 2019-1 (San Luis
Ranch) (CFD) of the City of San Luis Obispo (City) shall be levied and collected according to the
tax liability determined by the City through the application of the appropriate amount or rate, as
described below.
2. Definitions
“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on an Assessor’s
Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on
the applicable final map or other Development Plan.
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, Sections 53311 and
following of the California Government Code.
“Administrative Expenses” means the actual or reasonably estimated costs related to the
administration of the CFD, including, but not limited to, these:
a. Costs of computing Special Taxes and preparing annual Special Tax collection schedules
(whether by the City or any designee thereof or both).
b. Costs of collecting the Special Taxes (whether by the County, the City, or otherwise).
c. Costs of remitting the Special Taxes to the Trustee.
d. Costs of the Trustee (including its legal counsel) in the discharge of the duties required of it
under the Bond Indenture.
e. Costs to the City, CFD, or any designee thereof of complying with arbitrage rebate
requirements.
f. Costs to the City, CFD, or any designee thereof of complying with City, CFD, or obligated
persons disclosure requirements.
g. Costs associated with preparing Special Tax disclosure statements.
Rate, Method of Apportionment, and Manner of Collection of Special Tax
Exhibit A February 9, 2021
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h. Costs incurred in responding to public inquiries regarding the Special Taxes.
i. Costs to the City, CFD, or designee thereof related to any appeal of the Special Taxes.
j. Costs associated with the release of funds from an escrow account, if any.
k. Costs to the City for the issuance of Bonds authorized by the CFD that are not recovered
through the Bond sale proceeds.
l. Amounts estimated to be advanced or already advanced by the City for any other
administrative purposes, including attorney’s fees and other costs related to collection of the
Special Taxes and commencing and pursuing to completion any foreclosure of delinquent
Special Taxes.
“Administrator” means the City Manager of the City, or his or her designee.
“Annual Costs” means, for any Fiscal Year, the total of these:
a. Administrative Expenses for such Fiscal Year.
b. Debt Service to be paid from Special Taxes during the Bond Year commencing during
such Fiscal Year.
c. The amount needed to pay other periodic costs on the Bonds, including but not limited to
credit enhancement and any rebate payments on the Bonds.
d. The amount needed to replenish the reserve fund for the Bonds to the level required
under the Bond Indenture, to the extent not included in a computation of Annual Costs in
a previous Fiscal Year.
e. The amount needed to (1) cure any delinquencies in the payment of principal or interest
on Bonds, which have occurred in the prior Fiscal Year, to the extent not otherwise
included in a computation of Annual Costs in the current or any previous Fiscal Year, and
(2) to fund any foreseeable deficiency of the amount to be available for the payment of
principal or interest on Bonds, which are expected to occur in such Fiscal Year, to the
extent not included in a computation of Annual Costs in the current or any previous Fiscal
Year.
f. The amount needed to (1) cure any delinquencies in the payment of the Special Tax in
the prior Fiscal Year, to the extent not otherwise included in a computation of Annual
Costs in the current or any previous Fiscal Year, and (2) to fund any foreseeable
deficiency in the payment of the Special Tax for that Fiscal Year which is expected to
occur in such Fiscal Year, to the extent not included in a computation of Annual Costs in
the current or any previous Fiscal Year.
g. Costs of acquisition, construction, and improvements of Authorized Facilities to be funded
on a Pay-As-You-Go Basis, in amounts determined by the Administrator.
h. Less any Capitalized Interest and any credits provided under a Bond Indenture.
Rate, Method of Apportionment, and Manner of Collection of Special Tax
Exhibit A February 9, 2021
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i. Less any available earnings on the reserve fund, Special Tax funds, available capitalized
interest or any other available revenues of the CFD or the City that may be used to fund
Annual Costs, to the extent determined by the Administrator.
“Anticipated Construction Proceeds” means the amount anticipated to be available through
the CFD for acquiring or constructing Authorized Facilities, which is equal to $14.0 million at
formation of the CFD. This amount is increased on July 1 of the current Fiscal Year for the prior
calendar year by the average increase in the ENR-CCI.
“Assessor’s Parcel” means a lot or Parcel with an assigned Assessor’s Parcel Number in the
maps used by the County Assessor in preparing the tax roll.
“Assessor’s Parcel Map” means an official map of the County Assessor designating Parcels by
Assessor’s Parcel Number.
“Assessor's Parcel Number” means the parcel identification as assigned by the County
Assessor on the equalized tax roll.
“Authorized Facilities” means those facilities and fees to be financed by the CFD.
“Base Year” means the Fiscal Year beginning July 1, 2018, and ending June 30, 2019.
“Benefit Share” means the Maximum Annual Special Tax for a Parcel divided by the Maximum
Annual Special Tax Revenue for all Taxable Parcels and their assigned Maximum Annual Special
Tax.
“Bond(s)” means any bond(s) issued by the CFD under the Act and any other debt, as defined
in the Act, payable from the Special Tax for the CFD.
“Bond Indenture” means the indenture, resolution, fiscal agent agreement, or other financing
document pursuant to which any Bonds are issued.
“Bond Share” means the share of Outstanding Bonds assigned to a Parcel as specified in
Section 7 hereof.
“Building Permit” means a permit issued by the City for the construction of a Residential Use or
Nonresidential Use.
“Building Square Foot(age)” has the same meaning as that defined for the School Mitigation
Fee by California Government Code Section 65995 for “Assessable Space,” which is “all of the
square footage within the perimeter of a residential structure, not including any carport,
walkway, garage, overhang, patio, enclosed patio, detached accessory structure, or similar area”
as determined by the “as built” size of the structure for the initial Building Permit. Future
additions to Residential Units are not to be considered for potential increases to the Special Tax.
“Capitalized Interest” means funds in any capitalized interest fund available to pay debt
service on Bonds.
“CFD” means Community Facilities District No. 2019-1 (San Luis Ranch) of the City.
“City” means the City of San Luis Obispo in San Luis Obispo County, California.
“Council” means the City Council of the City acting for the CFD under the Act.
Rate, Method of Apportionment, and Manner of Collection of Special Tax
Exhibit A February 9, 2021
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“County” means the County of San Luis Obispo, California.
“Debt Service” means the total annual amount of Bond principal, interest, and the scheduled
sinking fund payments of the Bonds in a calendar year.
“Developed Parcel” means, in any Fiscal Year:
a. For Single-Family Parcels: All Parcels for which a Building Permit for a Residential Use
structure which consists of a single-family house that was issued before May 1 of the
preceding Fiscal Year.
b. For Multifamily Parcels: All Parcels for which a Building Permit for new construction of a
Residential Use structure, other than a single-family house, that was issued before May 1 of
the preceding Fiscal Year.
Once a Parcel is defined as a Developed Parcel it shall be taxed as such under the provisions of
this RMA.
“Development Plan” means a condominium plan, apartment plan, site plan, or other
development plan that identifies such information as the type of structure, acreage, square
footage, or number of Units that are approved to be developed on Residential Use Parcels.
“ENR-CCI” means the Engineering News Record—Construction Cost Index for Los Angeles in the
prior calendar year, as determined on July 1 of the current Fiscal Year.
“Final Map Parcel” means a Parcel designated for development of a single-family residence,
which is part of a Final Subdivision Map as of May 1 of the preceding Fiscal Year. The Minimum
Annual Special Tax for Final Map Parcels is shown in Attachment 1 by Tax Category.
“Final Subdivision Map” means a recorded map designating the final Parcel Subdivision for
individual Single-Family Parcels.
“Fiscal Year” means the period starting July 1 and ending the following June 30.
“Full Prepayment” means the complete fulfillment of a Parcel’s Special Tax obligation, as
determined by following the procedures in Section 7.
“Lot Number” means the numeric designation for all Parcels shown in Map 1, Map 2, and
Attachment 1 at formation of the CFD.
“Market-Rate Unit” means a Unit that is not a Workforce/Affordable Unit.
“Maximum Annual Special Tax” means the maximum amount of Special Taxes assigned to a
Taxable Parcel, as applicable by Tax Category.
“Maximum Annual Special Tax Revenue” means the greatest amount of Special Tax that can
be collected in total from a group of Parcels (such as Developed Parcels) by levying the
Maximum Annual Special Tax.
“Minimum Annual Special Tax” means the minimum amount of Special Tax as assigned to
Taxable Parcels, shown in Attachment 1, at formation of the CFD.
Rate, Method of Apportionment, and Manner of Collection of Special Tax
Exhibit A February 9, 2021
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“Multifamily For-Rent” or “Multifamily For-Rent Parcel” means any Parcel designated or
developed for more than one residential dwelling Unit per Parcel and where such units are
initially offered for rent to the general public and cannot be purchased by individual homeowners.
Such uses may consist of apartments or structures such as duplexes or triplexes. Each
residential dwelling Unit within Multifamily For-Rent or Multifamily For-Rent Parcels is not
expected to have its own distinct Assessor’s Parcel Number.
“Multifamily For-Sale” or “Multifamily For-Sale Parcel” means any Parcel designated or
developed for more than one residential dwelling Unit within a single building or structure and
that may share at least one common wall where such units are not initially offered for rent to the
general public and initially may be offered for sale to individual homeowners. Such uses may
consist of condominiums, townhouses, or buildings such as half-plexes or time-share units.
Multifamily For-Sale Parcels are anticipated to have their own distinct Assessor’s Parcel Number
as is the case in residential condominium projects. Once designated as Multifamily For-Sale or
Multifamily For-Sale Parcel, the Parcel shall remain so designated unless the original structures
are demolished.
“Nonresidential Use” means a Taxable Parcel zoned for land uses other than Residential Uses,
such as hotel, commercial, office, or retail. Nonresidential Uses planned at CFD formation are
tax-exempt.
“Original Parcel” means a Parcel identified in Attachment 1 and Map 1 by Lot Number at
formation of the CFD.
“Outstanding Bonds” means the total principal amount of Bonds that have been issued and not
fully repaid or legally defeased.
“Parcel” means any Assessor’s Parcel in the CFD based on the equalized tax rolls of the County
as of January 1 of each Fiscal Year.
“Partial Prepayment” means the partial fulfillment of a Parcel’s Special Tax obligation, as
determined by following the procedures in Section 7.
“Pay-As-You-Go Basis” means that of the use of Special Tax revenues to directly fund the
costs of acquisition, construction, and improvement of Authorized Facilities not financed by
Bonds, as a part of an acquisition agreement or funding agreement with the City.
“Prepayment” means the partial or complete fulfillment of a Parcel’s Special Tax obligation, as
determined by following the procedures in Section 7.
“Proportionately” means that the ratio of the actual Special Tax levy to the Maximum Annual
Special Tax is equal for all Developed Parcels. For Final Map Parcels, Proportionately means that
the ratio of the actual Special Tax levy to the Maximum Annual Special Tax is equal for all Final
Map Parcels. For Undeveloped Parcels, Proportionately means that the ratio of the actual Special
Tax levy to the Maximum Annual Special Tax is equal for all Undeveloped Parcels.
“Public Parcel” means any Parcel that is or is intended to be publicly owned, as designated in
any final map, that is normally exempt from the levy of general ad valorem property taxes under
California law, including, but not limited to, public streets, schools, parks, and public
drainageways, landscaping, wetlands, greenbelts, and open space.
Rate, Method of Apportionment, and Manner of Collection of Special Tax
Exhibit A February 9, 2021
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“Remainder Parcel” means a portion of a unit of land that is created as a result of the
recording of a Final Subdivision Map or other Subdivision, which results in a designated
remainder as defined in Government Code Section 66424.6(a) (Remainder Parcel). Such a
Remainder Parcel may contain taxable and tax-exempt uses, such as Residential Uses, and Public
Parcels, such as park sites.
“Remaining Facilities Costs” means the amount of Anticipated Construction Proceeds less
construction proceeds from previous Bond issuances and less costs of Authorized Facilities
funded on a Pay-As-You-Go Basis from the levy of the Special Tax.
“Remaining Facilities Cost Share” means the Remaining Facilities Costs multiplied by the
Benefit Share.
“Reserve Fund” means any debt service reserve fund established pursuant to the Bond
Indenture.
“Reserve Fund Requirement” means the amount required to be held in any Reserve Fund.
“Reserve Fund Share” means the amount on deposit in any Reserve Fund, but in any event not
to exceed the Reserve Fund Requirement, multiplied by the Benefit Share for a given Parcel.
“Residential Use” means a Parcel designated for residential use, such as single-family
residential Units, residential condominiums, townhouses, or apartments.
“RMA” means this Rate, Method of Apportionment, and Manner of Collection of Special Tax.
“Single-Family Parcel” means, in any Fiscal Year, all Parcels in the CFD for which a building
permit was issued or may be issued for construction of a Unit that is a single-family residential,
residential condominium, or townhouse Unit.
“Special Tax(es)” mean(s) any tax levy under the Act in the CFD.
“Subdivision” or “Subdivided” means a division of a Parcel into two or more Parcels through
Parcel reconfiguration, lot-line adjustments, Condominium Plan (Civil Code Section 4285), or the
Subdivision Map Act process. A Subdivision also may include the merging of two or more Parcels
to create new Parcels.
“Successor Parcel” means a Parcel created by the Subdivision of an Original Parcel or a
Successor Parcel.
“Tax Category” means the categories of taxable land uses shown in Attachments 1 and 2.
“Tax Collection Schedule” means the document prepared by the Administrator for the County
Auditor-Controller to use in levying and collecting the Special Taxes each Fiscal Year.
“Tax Escalation Factor” means a factor of 2 percent by which the Maximum Annual Special Tax
and Minimum Annual Special shall be increased annually following the Base Year.
“Taxable Acreage” means that area of a Parcel determined by the Administrator to become a
Taxable Parcel or Parcels upon further Subdivision. An example might be that a Final Subdivision
Map creates a Remainder Parcel that, according to Attachment 1, contains both taxable uses
and tax-exempt uses.
Rate, Method of Apportionment, and Manner of Collection of Special Tax
Exhibit A February 9, 2021
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“Taxable Parcel” means any Parcel that is not a Tax-Exempt Parcel.
“Tax-Exempt Parcel” means a Parcel not subject to the annual Special Tax. Tax-Exempt
Parcels include (a) Nonresidential Use Parcels at the time of CFD formation, (b) Multifamily For-
Rent Parcels at the time of CFD formation, (c) Public Parcels, and (d) Parcels owned by the City,
school districts, special districts, or the state or federal government. A Taxable Parcel that is
acquired by a public agency, the Parcel shall remain a Taxable Parcel as per the provisions of
Section 4.m.
Certain privately-owned Parcels also may be exempt from the levy of annual Special Taxes,
including common areas owned by homeowner’s associations or property owner associations,
wetlands, detention basins, water quality ponds, and open space, as determined by the
Administrator.
“Trustee” means a national banking association organized and existing under the laws of the
United States acting as a trustee or fiscal agent for Bonds.
“Undeveloped Parcel” means a Taxable Parcel that is not a Developed Parcel or Final Map
Parcel.
“Unit” means, for a Single-Family Parcel, the individual residential unit on such Parcel, or for a
Multifamily For-Rent Parcel or Multifamily For-Sale Parcel, an individual residential unit in a
multifamily building.
“Workforce/Affordable Unit(s)” means Residential Use Units identified in Attachment 1 by
Tax Category. If there are a greater number of Units for which Building Permits are to be issued
within a Tax Category, the Administrator shall require that the Maximum Annual Special Tax is
prepaid in fill using the Prepayment procedures in Section 7.
3. Duration of the Special Tax
The Special Tax will be levied and collected for as long as it is needed to pay Annual Costs;
however, in no event shall the Special Tax be levied on any Parcel in the CFD after Fiscal
Year 2062-63.
When all Authorized Facilities and other Annual Costs incurred by the CFD have been paid, the
Special Taxes shall cease to be levied. The City shall direct the County Recorder to record a
Notice of Cessation of Special Tax. Such notice will state that the obligation to pay the Special
Tax has ceased and that the lien imposed by the Notice of Special Tax Lien is extinguished. In
addition, the Notice of Cessation of Special Tax shall identify the book and page of the Book of
Maps of Assessment and Community Facilities Districts where the map of the boundaries of the
CFD is recorded.
4. Administrative Tasks
Tasks required of the Administrator are discussed below:
a. Annual Special Tax Escalation. The Administrator shall increase the Minimum Annual Special
Tax and Maximum Annual Special Tax (for Developed Parcels, Final Map Parcels, and
Undeveloped Parcels) by the Tax Escalation Factor in all Fiscal Years following the Base Year.
Rate, Method of Apportionment, and Manner of Collection of Special Tax
Exhibit A February 9, 2021
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b. Assignment of the Minimum Annual Special Tax and Maximum Annual Special Tax to Original
Parcels. A Final Subdivision Map has been approved by the City creating all Taxable Parcels.
Attachment 1 identifies the Minimum Annual Special Tax and Maximum Annual Special Tax
for each Original Parcel and Lot Number at CFD formation, as shown in Attachment 1. The
Minimum Annual Special Tax for a Final Map Parcel is determined for each Tax Category and
planned Building Square Footage per Unit based on the Minimum Annual Special Tax per Unit
times the number of assigned Units for each Tax Category at CFD formation. The Maximum
Annual Special Tax is determined for each Tax Category and planned Building Square
Footage per Unit based on the Maximum Annual Special Tax per Unit times the number of
assigned Units for each Tax Category at CFD formation. Maps 1 and 2 shows the location of
expected future Parcels in each Tax Category. Future Parcels are identified in Maps 1 and 2
by land use designations and final map lot numbers.
The Minimum Annual Special Tax assigned at CFD formation to each Original Parcel shall not
be reduced as a result of future development approvals. The following procedures provide
instructions for the assignment of the Minimum Annual Special Tax and Maximum Annual
Special Tax as the CFD is built out.
Once the Minimum Annual Special Tax and Maximum Annual Special Tax is assigned to a
Parcel, it shall remain subject to that Special Tax unless fully prepaid using the provisions of
Section 7, or the Special Taxes are transferred to another Parcel using the provisions of
Section 4.i.
c. Assignment of the Minimum Annual Special Tax and Maximum Annual Special Tax upon
Recordation of a Final Subdivision Map: Attachment 1 assigns the number of anticipated
Units for each Tax Category. If upon recordation of the Final Subdivision Map there are
fewer Units created, perform the following procedures to assign the Minimum Annual Special
Tax and Maximum Annual Special Taxes to Final Map Parcels.
1. Identify the number of Units assigned to the Tax Category by Building
Square Footage range and Minimum Annual Special Tax and Maximum Annual
Special Tax assigned to the Original or Successor Parcel in Attachment 1.
(Assume that the number of Workforce/Affordable Units remain the same for each
Tax Category).
2. Identify the number of Units created by the Final Subdivision Map for each
Tax Category.
3. Reduce the number of Units shown in Attachment 1 for the Tax Category
and Building Square Footage range by reducing the Units assigned to each
Building Square Footage range equally until the total Units for the Tax Category
match the Units created by the Final Subdivision Map. If the number of Units that
must be reduced is an odd number, apply the remaining Unit reduction to the
lower Building Square Footage range for the Tax Category.
4. Proportionately increase the Minimum Annual Special Tax per Unit and
Maximum Annual Special Tax per Unit such that the amounts for each Taxable
Parcel, when summed, equals the Minimum Annual Special Tax and Maximum
Annual Special Tax assigned to the Original or Successor Parcel immediately prior
Rate, Method of Apportionment, and Manner of Collection of Special Tax
Exhibit A February 9, 2021
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to such calculation.
The Administrator shall update Attachment 1 showing the newly assigned
Minimum Annual Special Tax and Maximum Annual Special Tax per Unit
and to the Original or Successor Parcel.
5. If the number of Units are greater than or equal to the Units assigned in
Attachment 1, assign the Maximum Annual Special Tax and Maximum Annual
Special Tax per Unit as shown in Attachment 1.
There shall be no loss of Minimum Annual Special Tax or Maximum Annual Special
Tax for an Original or Successor Parcel as a result of the recordation of the final
map.
d. Assignment of the Maximum Annual Special Tax to Single-Family Parcels at Building Permit
Issuance: At issuance of a Building Permit for Residential Uses, assign the Maximum Annual
Special Tax shown in Attachment 1 for the Tax Category and Building Square Footage
Range to the Taxable Parcel. In assigning the Maximum Annual Special Tax to the Developed
Parcel, the Minimum Annual Special Tax may remain equal to the Maximum Annual Special
Tax, or may be increased from the Minimum Annual Special Tax based upon the Building
Square Footage identified in the Building Permit. The amount of the assigned Special Tax
shall not decrease upon issuance of a Building Permit.
e. Assignment of the Minimum Annual Special Tax and Maximum Annual Special Tax to
Multifamily For-Sale Parcels at Subdivision or at Building Permit Issuance: At formation of
the CFD, the Minimum Annual Special Tax and Maximum Annual Special Tax, as shown in
Attachment 1 for the Tax Category for High Density Residential – For Sale and Lot Number,
is assigned to each of the 296 Units, as shown in Map 2. The sum of the Minimum Annual
Special Tax and the sum of the Maximum Annual Special Tax for each Unit is the amount of
each Special Tax assigned at CFD formation. As one or more Subdivisions occur, or Building
Permits are issued for the construction of the Units, use the following procedures to assign
the Minimum Annual Special Tax and Maximum Annual Special Tax to Taxable Parcels.
1. Identify the Minimum Annual Special Tax and Maximum Annual Special Tax assigned to
the Lot Number(s) in Attachment 1.
2. Assign the Minimum Annual Special Tax and Maximum Annual Special Tax per Unit, as
shown in Attachment 1 for the Tax Category and Lot Number, to each Unit as shown in
the Building Permit or Subdivision.
3. If the Subdivision is approved or Building Permit has been issued to allow the
construction of all planned Units (as shown in Attachment 1) for the Lot Number, sum
the Maximum Annual Special Tax assigned to each Unit.
4. If the sum of the amounts in Step 4.e.3 is equal to, or greater than, the amount of
Minimum Annual Special Tax and Maximum Annual Special Tax identified in Step 4.e.1,
assign this Minimum Annual Special Tax and Maximum Annual Special Tax to each Unit.
5. If the sum of the amounts in Step 4.e.3 is less than the amount identified in Step 4.e.1
for the Lot Number, Proportionately increase the Minimum Annual Special Tax and
Rate, Method of Apportionment, and Manner of Collection of Special Tax
Exhibit A February 9, 2021
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Maximum Annual Special Tax per Unit for each Unit until the sum of the amount of the
Minimum Annual Special Tax and Maximum Annual Special Tax for each Unit are equal to
the amount identified in Step 4.e.1.
The Administrator shall update Attachment 1 showing the newly assigned
Minimum Annual Special Tax and Maximum Annual Special Tax per Unit and to
the Original or Successor Parcel.
6. If the Subdivision or Building Permit represents fewer Units than shown for the Lot
Number in Attachment 1, resulting in the creation of a Remainder Parcel for the Lot
Number, assign the Minimum Annual Special Tax and Maximum Annual Special Tax to the
Remainder Parcel(s) using the following procedures.
a. Identify the number of Units (as shown in Attachment 1) for the Lot Number
subject to the Subdivision or Building Permit.
b. Subtract the number of Units created by the Subdivision or Building Permit from
the amount of Units from Step 4.e.6.a.
c. Multiply the number of Units from Step 4.e.6.b times the Minimum Annual Special
Tax per Unit and Maximum Annual Special Tax per Unit to derive the Minimum
Annual Special Tax and Maximum Annual Special Tax to be assigned to the
Remainder Parcel.
f. Multifamily For-Rent Parcels Developed as Multifamily For-Sale Parcels: Lot 2 shown in Map
1 is designated under the RMA as a Multifamily For-Rent Parcel which is a Tax-Exempt Parcel.
If Units identified in Attachment 1 as Multifamily For-Rent are developed as Multifamily For-
Sale Parcels, assign the Minimum Annual Special Tax per Unit and Maximum Annual Special
Tax per Unit to such Parcels using the amounts shown in Attachment 2 for the appropriate
Building Square Footage of each Taxable Parcel.
g. If a Nonresidential Use Original or Successor Parcel is Subdivided creating Residential Use
Parcels: When Nonresidential Use Parcels shown in Attachment 1 are Subdivided into
Successor Parcels that are Residential Use, use the procedure below to assign the Minimum
Annual Special Tax and Maximum Annual Special Tax to Parcels.
1. Identify the Minimum Annual Special Tax and Maximum Annual Special Tax for
the Tax Category shown in Attachment 2 for the proposed Residential Uses.
2. Assign the Minimum Annual Special Tax and Maximum Annual Special Tax to each
planned Unit.
h. Reassignment of the Minimum Annual Special Tax and Maximum Annual Special Tax upon
Land Use Change or Remapping: If there is a land use change or remapping of Parcels
shown in Map 1, the Maximum Annual Special Tax and Maximum Annual Special Tax will be
reassigned to newly created Parcels using the following procedures.
1. Identify all Taxable Parcels in Attachment 1 and on Map 1 or Map 2 that
are subject to the land use change or remapping.
Rate, Method of Apportionment, and Manner of Collection of Special Tax
Exhibit A February 9, 2021
Economic & Planning Systems, Inc. (EPS) 11 Z:\Shared\Projects\SAC\182000\181049 San Luis Ranch CFD\Rate and Method\181049 rm12 2-9-2021.docx
2. Calculate the Minimum Annual Special Tax and Maximum Annual Special
Tax (by Building Square Footage range) for all Taxable Parcels identified in
Step 4.h.1.
3. Identify land use categories for remapped Taxable Parcels.
4. Assign the corresponding Minimum Annual Special Tax and Maximum
Annual Special Tax to remapped Taxable Parcels based upon Tax
Categories and Building Square Footage ranges identified in Attachment
2.
5. Calculate the Minimum Annual Special Tax and Maximum Annual Special
Tax for all Taxable Parcels from Step 4.h.4.
6. If the amount of the Minimum Annual Special Tax and Maximum Annual
Special Tax from Step 4.h.2 is less than the amount summed in Step
4.h.4, assign the Minimum Annual Special Tax and Maximum Annual
Special Tax per Unit (increased by the Tax Escalation Factor to the current
Fiscal Year) to each Taxable Parcel.
7. If the amount of the Minimum Annual Special Tax and Maximum Annual
Special Tax from Step 4.h.2 is greater than the amount summed in Step
4.h.4, increase the Minimum Annual Special Tax and Maximum Annual
Special Tax per Unit (increased by the Tax Escalation Factor to the current
Fiscal Year) Proportionately for each Taxable Parcel until the sum of the
Minimum Annual Special Tax and Maximum Annual Special Tax for all
Taxable Parcels is equal to the amount summed in Step 4.h.2.
i. Workforce/Affordable Units Assigned at Formation of the CFD: For each Tax Category, the
RMA assigns a number of Units defined as Workforce/Affordable Units. If there are more
Workforce/Affordable Units constructed within a Tax Category than shown in Attachment 1,
the Administrator shall Proportionately increase the Maximum Annual Special Tax for each
Unit of Parcel created by the Subdivision, or Building Permit, until the Maximum Annual
Special Tax Revenue for the Lot Number subject to the Subdivision or Building Permit is
equal to the Maximum Annual Special Tax equals the Maximum Annual Special Tax for the
Lot Number shown in Attachment 1. Workforce/Affordable Units are Tax-Exempt Parcels.
j. Workforce/Affordable Units that Become Market-Rate Units. If, in any Fiscal Year, the
Administrator, or his or her designee, determines that a Unit that previously had been
designated as a Workforce/Affordable Unit no longer qualifies as such, the Administrator shall
assign the Minimum Annual Special Tax and Maximum Annual Special Tax per Unit based on
their Tax Category and Building Square Footage range as shown in Attachment 2, as
adjusted by the Tax Escalation Factor.
k. Transfer of the Special Tax from Taxable Parcel to Another. The Minimum Annual Special Tax
and Maximum Annual Special Taxes shown in Attachment 1 were determined based on the
expected Tax Categories for each Original Parcel shown in Attachment 1. If the number of
planned residential Units is transferred from one Original or Successor Parcel to another, the
City may, in its sole discretion, allow for a transfer of the Minimum Annual Special Tax and
Maximum Annual Special Tax from one Taxable Parcel to another. Such a transfer shall be
Rate, Method of Apportionment, and Manner of Collection of Special Tax
Exhibit A February 9, 2021
Economic & Planning Systems, Inc. (EPS) 12 Z:\Shared\Projects\SAC\182000\181049 San Luis Ranch CFD\Rate and Method\181049 rm12 2-9-2021.docx
allowed only if (1) all adjustments are agreed to in writing by the affected property owners
and the Administrator, and (2) there is no reduction in the total Minimum Annual Special Tax
and Maximum Annual Special Tax revenues as a result of the transfer. Should a transfer
result in an amendment to Attachment 1 of the Notice of Special Tax Lien, the requesting
property owner shall bear the costs to affect the transfer in the CFD records and prepare the
required amendments to the Notice of Special Tax Lien and Attachment 1. Before the
transfer, the City may require a deposit from the requesting property owner for such costs.
l. Conversion of a Tax-Exempt Parcel to a Taxable Parcel. If a Tax-Exempt Parcel is not needed
for public use and is converted to a taxable use or transferred to a private owner, it shall
become subject to the Special Tax. The Minimum Annual Special Tax and Maximum Annual
Special Tax for the newly Taxable Parcel will be determined using the provisions of
Sections 4 and 5 of the RMA.
m. Taxable Parcels Acquired by a Public Agency. A Taxable Parcel that is acquired by a public
agency after the CFD is formed will remain subject to the applicable Special Tax unless the
Special Tax obligation is satisfied pursuant to Section 53317.5 of the Government Code.
An exception to this may be made if a Public Parcel, such as a park site, is relocated to a
Taxable Parcel, in which case the previously Tax-Exempt Parcel of comparable acreage
becomes a Taxable Parcel and the Minimum Annual Special Tax Maximum Annual Special Tax
from the previously Taxable Parcel is transferred to the new Taxable Parcel. This trading of a
Parcel from a Taxable Parcel to a Public Parcel will be permitted to the extent there is no net
loss in Minimum Annual Special Tax and Maximum Annual Special Tax Levy for all Taxable
Parcels in the CFD, and the transfer is agreed to by the owners of the Parcels involved in the
transfer and the Finance Director.
5. Assignment of the Special Tax
a. Classification of Parcels. For purposes of the next Fiscal Year tax levy, by June 30 of each
Fiscal Year, using the Definitions in Section 2, the Parcel records of the Assessor’s secured
tax roll as of January 1, and other City development approval records, the Administrator shall
cause:
1. Each Parcel to be classified as a Taxable Parcel or Tax-Exempt Parcel.
2. Each Parcel to be classified as a Developed Parcel, a Final Map Parcel, or an Undeveloped
Parcel.
b. Assignment of the Minimum Annual Special Tax and Maximum Annual Special Tax to Taxable
Parcels. The Special Taxes will be assigned to each Taxable Parcel each Fiscal Year using the
procedures (not all steps may be applicable for each such Parcel) in Section 4.
6. Calculating Annual Special Taxes/Method of
Apportionment
The Administrator will compute the Annual Cost and determine the annual Special Tax levy for
each Taxable Parcel based on the assignment of the Special Tax in Sections 4 and 5. The
Administrator then will determine the tax levy for each Taxable Parcel using the following
process:
Rate, Method of Apportionment, and Manner of Collection of Special Tax
Exhibit A February 9, 2021
Economic & Planning Systems, Inc. (EPS) 13 Z:\Shared\Projects\SAC\182000\181049 San Luis Ranch CFD\Rate and Method\181049 rm12 2-9-2021.docx
a. Compute the Annual Costs using the definition of Annual Costs in Section 2.
Step 6.a.1: Levy the Special Tax Proportionately for each Developed Parcel up to the lesser
of the Annual Cost calculated in Section 6.a and the Maximum Annual Special
Tax for each Developed Parcel.
Step 6.a.2: If the levy calculated in Step 6.a.1 is less than the Annual Cost, levy the
Special Tax Proportionately for each Final Map Parcel, up to the amount that
when added to the levy calculated in Step 6.a.1, equals the lesser of the
Annual Cost and the Maximum Annual Special Tax for each Final Map Parcel.
Step 6.a.3: If the total of the levy calculated in Step 6.a.1 and Step 6.a.2 is less than the
Annual Cost, levy the Special Tax Proportionately for each Undeveloped Parcel,
up to the amount that when added to the levy calculated in Step 6.a.1 and
Step 6.a.2, equals the lesser of the Annual Cost and the Maximum Annual
Special Tax for each Undeveloped Parcel.
b. Levy on each Taxable Parcel the amount calculated above.
c. Prepare the Tax Collection Schedule and, unless an alternative method of collection has been
selected pursuant to Section 9, send it to the County Auditor requesting that it be placed on
the general, secured property tax roll for the Fiscal Year. The Tax Collection Schedule will
not be sent later than the date required by the County Auditor for such inclusion.
The Administrator will make every effort to calculate the Special Tax correctly for each
Parcel. It will be the burden of the taxpayer to correct any errors in determining which
Parcels are subject to the tax and their Special Tax assignments.
7. Prepayment of the Special Tax Obligation
A property owner may permanently or partially satisfy the Special Tax for a Taxable Parcel by a
Full or Partial Prepayment, as permitted under Government Code Section 53344. Prepayments
must be made by May 1 to have the Prepayment reflected in the following Fiscal Year’s Special
Tax levy. Prepayment is permitted only under the following conditions:
• The landowner prepaying the Special Tax on a Parcel has paid any delinquent Special Tax
and penalties on that Parcel before Prepayment.
• Following Prepayment, amounts in the reserve fund are equal to or greater than the reserve
fund requirement.
• The City determines that the Prepayment will not jeopardize its ability to make timely
payments of Debt Service and maintain a 110-percent annual Debt Service coverage based
on Maximum Annual Special Tax Revenues in all years in which issued Bonds will be
outstanding.
When permitted, the Administrator shall calculate Full Prepayments using the following steps:
a. The Full Prepayment amount before any issuance of CFD Bonds shall be calculated using the
following procedures:
Rate, Method of Apportionment, and Manner of Collection of Special Tax
Exhibit A February 9, 2021
Economic & Planning Systems, Inc. (EPS) 14 Z:\Shared\Projects\SAC\182000\181049 San Luis Ranch CFD\Rate and Method\181049 rm12 2-9-2021.docx
Step 7.a.1. Determine the Maximum Annual Special Tax for the Parcel for which the Special
Tax is to be prepaid using the provisions of Sections 4 and 5, treating such
Parcel as a Developed Parcel.
Step 7.a.2. Divide the amount from Step 7.a.1. by the Maximum Annual Special Tax
Revenue, assuming all Taxable Parcels are Developed Parcels, to determine the
Benefit Share for the Full Prepayment Parcel.
Step 7.a.3. Multiply the Remaining Facilities Costs, as increased by ENR-CCI from the Base
Year, by the Benefit Share to determine the Full Prepayment amount.
Step 7.a.4. Add to the amount determined in Step 7.a.3. any costs to the City, including the
costs of any City consultants, associated with the preparation of the Full
Prepayment calculation.
b. The Full Prepayment amount after the issuances of CFD Bonds shall be calculated using the
following procedures:
Step 7.b.1. Determine the Maximum Annual Special Tax for the Parcel for which the Special
Tax is to be prepaid using the provisions of Sections 4 and 5. If the Parcel is
not a Developed Parcel, assign the Maximum Annual Special Tax for the Tax
Category for the Prepayment Parcel assuming the Building Square Footage is
within the higher range of Maximum Annual Special Taxes for the Tax Category.
Step 7.b.2. Divide the amount from Step 7.b.1. by the Maximum Annual Special Tax
Revenue, assuming all Taxable Parcels are Developed Parcels, to determine the
Benefit Share for the Parcel.
Step 7.b.3. Multiply the Benefit Share by the total amount of Outstanding Bonds to
determine the Bond Share for the Full Prepayment Parcel.
Step 7.b.4. Multiply the Benefit Share by the Remaining Facilities Costs, as increased by
ENR-CCI from the Base Year, to determine the Remaining Facilities Cost Share
for the Full Prepayment Parcel.
Step 7.b.5. Sum the Bond Share and Remaining Facilities Cost Share from Steps 7.b.3. and
7.b.4.
Step 7.b.6. Determine the total amount of Bonds to be called by rounding the amount
summed in Step 7.b.5. down to the nearest $5,000.
Step 7.b.7. Multiply the amount calculated in Step 7.b.6. by the call premium for the next
available call date.
Step 7.b.8. Determine the Reserve Fund Share for the Full Prepayment Parcel by
multiplying the Reserve Fund Requirement by the Benefit Share.
Step 7.b.9. Reduce the amount calculated in Step 7.b.5. by the amount of the Reserve Fund
Share in Step 7.b.8., provided the amount in the Reserve Fund equals the
Reserve Fund Requirement after reduction.
Rate, Method of Apportionment, and Manner of Collection of Special Tax
Exhibit A February 9, 2021
Economic & Planning Systems, Inc. (EPS) 15 Z:\Shared\Projects\SAC\182000\181049 San Luis Ranch CFD\Rate and Method\181049 rm12 2-9-2021.docx
Step 7.b.10. Determine the Full Prepayment amount by adding to the amount calculated in
Step 7.b.9. any fees, call premiums, and interest to the next Bond call date not
covered by Special Taxes already levied and collected for the prepaying Parcel,
and expenses incurred by the CFD in connection with the Full Prepayment
calculation or the application of the proceeds of the Full Prepayment to the call
of Outstanding Bonds.
Step 7.b.11. If the Special Taxes already have been levied but not collected, the Parcel shall
not become a Full Prepayment Parcel until the owner of the Parcel has paid the
Special Taxes included on the current property tax bill in addition to the Full
Prepayment amount.
c. Partial Prepayments are allowed only for Parcels owned by a property owner before the
issuance of the initial Building Permit. A Partial Prepayment can occur only once per
Assessor’s Parcel. The City may allow a Partial Prepayment if the City determines that the
Partial Prepayment will not jeopardize its ability to make timely payments of Debt Service
and maintain a 110-percent annual Debt Service coverage based on Maximum Annual Special
Tax Revenues in all years where there will be Outstanding Bonds. Partial Prepayments will
be calculated as described below:
The amount of any Partial Prepayment must be either 25 percent or 50 percent of the Full
Prepayment amount determined in Step 7.b.7. A Partial Prepayment may be made in an
amount equal to 25 percent or 50 percent of the Full Prepayment desired by the party
making a Partial Prepayment, except that the full amount of Administrative Expenses
determined in Step 7.b.10 shall be included in the Partial Prepayment. The Maximum Annual
Special Tax that can be levied on a Parcel after a Partial Prepayment is made is equal to the
Special Tax that could have been levied before the Prepayment, reduced by the percentage
of the Full Prepayment that the Partial Prepayment represents, all as determined by or at the
direction of the Finance Director. For example, if the Partial Prepayment is equal to
25 percent, the Special Tax applied to the Parcel would be 75 percent of the Maximum
Annual Special Tax.
d. Upon Full Prepayment, the Administrator shall cause to be recorded a Notice of Cancellation
of Special Tax Lien in accordance with Government Code Section 53344.
8. Interpretation, Application, and Appeal of
Special Tax Formula and Procedures
Any taxpayer who feels the amount of the Special Tax assigned to a Parcel is in error may file a
notice with the Administrator appealing the levy of the Special Tax. The Administrator will then
promptly review the appeal and, if necessary, meet with the applicant. If the Administrator
verifies the tax should be modified or changed, the Special Tax levy will be corrected and, if
applicable in any case, a refund will be granted.
Interpretations may be made by resolution of the Council for purposes of clarifying any
vagueness or ambiguity as it relates to the Special Tax rate, the method of apportionment, the
classification of properties, or any definition applicable to the CFD.
Rate, Method of Apportionment, and Manner of Collection of Special Tax
Exhibit A February 9, 2021
Economic & Planning Systems, Inc. (EPS) 16 Z:\Shared\Projects\SAC\182000\181049 San Luis Ranch CFD\Rate and Method\181049 rm12 2-9-2021.docx
Without Council approval, the Administrator may make minor, non-substantive administrative
and technical changes to the provisions of this Exhibit that do not materially affect the rate,
method of apportionment, and manner of collection of the Special Tax for purposes of the
administrative efficiency or convenience or to comply with new applicable federal, state, or local
law.
9. Manner of Collection
The Special Tax will be collected in the same manner and at the same time as ad valorem
property taxes, provided, however, the Administrator or its designee may directly bill the Special
Tax and may collect the Special Tax at a different time, such as on a monthly or other periodic
basis, or in a different manner, if necessary, to meet the City’s financial obligations.
Attachment 1
City of San Luis Obispo CFD No. 2019-1 (San Luis Ranch)
Assignment of the Special Taxes to Original Parcels - Base Year
Maximum Annual
Minimum Minimum Special Tax
Annual Annual For Developed Maximum Annual
Original Special Tax Special Tax Parcels Special Tax
Parcel Tax Categories Acres Units per Unit/Acre per Tax Category per Unit/Acre per Tax Category
[1] [2][1]
067-121-022 Residential Uses per Unit per Unit
Low Density Residential (LDR)15.51
1,850 sq. ft. and greater 98 $2,630 $257,740 $3,110 $304,780
Less than 1,850 sq. ft.94 $2,630 $247,220 $2,630 $247,220
Workforce/Affordable Units [3]6 $0 $0 $0
LDR Subtotal 198 $504,960 $552,000
Medium Density Residential (MDR)5.14
1,600 sq. ft. and greater 44 $2,150 $94,600 $2,630 $115,720
Less than 1,600 sq. ft.33 $2,150 $70,950 $2,150 $70,950
Workforce/Affordable Units [3]6 $0 $0 $0
MDR Subtotal 83 $165,550 $186,670
High Density Residential (HDR) - For Sale [2]
Townhomes per Unit per Unit
Lot 5 0.32 8 $1,910 $15,280 $1,910 $15,280
Lot 6 1.66 36 $1,910 $68,760 $1,910 $68,760
Lot 7 1.67 34 $1,910 $64,940 $1,910 $64,940
Workforce/Affordable Units [3]2 $0 $0 $0 $0
Condominiums
Lot 1 1.98 60 $1,600 $96,000 $1,600 $96,000
Lot 2 1.35 34 $1,600 $54,400 $1,600 $54,400
Workforce/Affordable Units [3]2 $0 $0 $0 $0
Efficiency Units
Lot 3 1.79 100 $1,199 $119,900 $1,199 $119,900
Lot 4 0.14 14 $1,199 $16,786 $1,199 $16,786
Workforce/Affordable Units [3]6 $0 $0 $0 $0
HDR Subtotal 8.90 296 $436,066 $436,066
Residential Use Totals 29.55 577 $1,106,576 $1,174,736
Nonresidential Uses per Acre per Acre
Commercial
Lot 7 Nonresidential Use 11.44 $0 $0 $0 $0
Lot 8 Nonresidential Use 3.33 $0 $0 $0 $0
Lot 9 Nonresidential Use 3.81 $0 $0 $0 $0
Nonresidential Use Totals 18.58
Public Uses
Parks 3.19 $0 $0 $0 $0
Open Space 7.81 $0 $0 $0 $0
Agricultural 52.32 $0 $0 $0 $0
Regional Road 9.00 $0 $0 $0 $0
Local Road 8.84 $0 $0 $0 $0
Public Use Totals 81.16 $0
Totals 129.29 $1,106,576 $1,174,736
"att1"
[1] The Minimum Annual Special Tax and Maximum Annual Special Tax per Unit/Acre are increased by 2% annually following the Base Year (FY 2018-19).
[2] The Minimum Annual Special Tax for Final Map Parcels is equal to the Maximum Annual Special Tax assigned to a Tax Category and Building Square Footage range.
[3] If there are a greater number of Workforce/Affordable Units Building Permits issued within a Tax Category (LDR, MDR, or HDR), the Administrator shall require the full
Prepayment of the Maximum Annual Special Tax for each such Unit constructed.
Lot Numbers
11 to 208
Lot Numbers
220 to 302
Minimum Annual Special Tax Maximum Annual Special Tax
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Attachment 2
City of San Luis Obispo CFD No. 2019-1 (San Luis Ranch)
Assignment of the Special Tax by Tax Category - Base Year
Minimum Maximum
Annual Annual
Special Tax Special Tax
Tax Category per Unit per Unit/Acre
[1][1]
Residential Uses per Unit per Unit
Low Density Residential (LDR)
1,850 sq. ft. and greater $2,630 $3,110
Less than 1,850 sq. ft.$2,630 $2,630
Workforce/Affordable Units $0 $0
Medium Density Residential (MDR)
1,600 sq. ft. and greater $2,150 $2,630
Less than 1,600 sq. ft.$2,150 $2,150
Workforce/Affordable Units $0 $0
High Density Residential (HDR) - For Sale [2]
For-Sale Multifamily
Townhomes $1,910 $1,910
Condominiums $1,600 $1,600
Efficiency Units $1,199 $1,199
Workforce/Affordable Units $0 $0
For-Rent Multifamily $0 $0
Nonresidential Uses per Acre per Acre
Commercial $0 $0
Office $0 $0
Hotel $0 $0
"att_2"
[1] The Minimum Annual Special Tax and Maximum Annual Special Tax per Unit/Acre are
increased by 2% annually following the Base Year (FY 2018-19).
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COMRWV (3)RMH (2)SPRINTL3PBPBPBPBPBPBPBPBDIDI1050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863 Map 1
Map 2
EXHIBIT B:
List of Authorized Facilities
EXHIBIT B
FACILITIES
In addition to the facilities described below, other expenses incidental to the below and authorized
by the Act, including but not limited to: the cost of planning, permitting, and designing the facilities
(including the cost of environmental evaluation, orthophotography, environmental
remediation/mitigation); land acquisition and easement payments for the facilities; project
management; construction staking; engineering studies and reports; utility relocation and
demolition costs incidental to construction of the facilities, wetland/species mitigation purchase;
reimbursements to other areas for infrastructure facilities or planning serving development in the
Community Facilities District; legal, engineering, technical studies costs related to the facilities
and any other expenses incidental to the construction, completion, and inspection of the facilities.
Transportation Improvements
Public roadway and bikeway improvements designed to meet the needs of the project, including
those improvements identified in the San Luis Ranch Financing Plan, including but not limited
to:
Item # Item
ROADWAYS
1 Froom Ranch Way (Prado to Oceanaire) Including Bridge
2 Froom Ranch Way (Oceanaire to Target Driveway)
3 Froom Ranch Way & LOVR Intersection Widening
4 Prado Road/US 101 Overpass and North Bound Lanes
5 Prado Road Southbound Ramps
6 Madonna & Dalidio/Prado Intersection Widening
OTHER AREA ROADWAYS (MITIGATIONS)
7 Madonna & SB 101 Off Ramp - Lengthen EB Left Turn Pocket
8 Madonna & Oceanaire Pedestrian X-ing Enhancements
9 Madonna & San Luis Ranch Way Pedestrian X-ing Enhancement
10 LOVR & SB 101 Off Ramp - Lengthen Left Turn Pocket
11 LOVR & Higuera - Lengthen EB Right Turn Pocket
12 Higuera & South - Lengthen NB Right Turn Pocket
OTHER AREA ROADWAY MITIGATIONS - FEE ONLY PROJECTS
13 Prado & Higuera Widening
14 Madonna Rd @ LOVR - Signal Timing Optimization
15 Madonna & Oceanaire Turn Lane Extensions
16 Madonna & LOVR - Turn Lane Extensions
17 LOVR & Auto Park Way Signalization
18 Higuera & Tank Farm - Lengthen NB Right Turn Pocket
SLR BIKEWAYS
19 Prado Road Class I Path (Madonna to Froom)
20 Madonna Road Class I Path / Protected bikeway (Hwy 101 to Oceanaire)
21 Bob Jones Trail (Calle Joaquin to Froom Ranch Road)
SLR BIKEWAYS - FEE ONLY PROJECTS
22 Prado Road Class I Path (NB Ramps to Higuera)
23 Bob Jones Trail (Madonna to Prado)
B-1
Eligible roadway improvements include the following items: acquisition of land and easements;
roadway design; project management; geotechnical engineering, testing and observations; bridge
crossings and culverts; clearing, grubbing, and demolition; grading, soil import/export, paving
(including slurry seal), and decorative/enhanced pavement concrete or pavers; power pole
relocations; joint trenches, underground utilities, and undergrounding of existing utilities; dry
utilities and appurtenances; curbs, gutters, sidewalks, bike trails (including on- and off-site), park
and ride facilities, bus rapid transit improvements, including transfer stations and regional public
transit improvements; retaining walls, sound walls, enhanced fencing, and access ramps; street
lights, signalization, and traffic signal control systems; bus turnouts; signs and striping; erosion
control; median and parkway landscaping and irrigation; entry monumentation; bus shelters;
masonry walls; and other improvements related thereto. Eligible improvements for the roads listed
above also include any and all necessary underground potable and non-potable water, sanitary
sewer, and storm drainage system improvements.
Potable and Non-Potable Water System Improvements
Authorized facilities include any and all on- and off-site backbone water facilities designed to meet
the needs of development of the project. These facilities include potable and non-potable mains,
valves, services, and appurtenances; wells; and water treatment and storage facilities, and related
improvements, including but not limited to: site clearing, grading, and paving; curbs and gutters;
recycled water storage tanks, booster pump stations, and all appurtenances thereto; wells; water
treatment; stand-by generator; site lighting, drainage, sanitary sewer, and water service;
landscaping and irrigation; access gates and fencing; striping and signage; and the following:
• Water lines in/associated with authorized facility roads.
• Recycled water lines in/associated with authorized facility roads.
Drainage System Improvements
Authorized facilities include any and all on- and off-site backbone drainage and storm drainage
improvements designed to meet the needs of development of the project. These facilities include
mains, pipelines and appurtenances, outfalls and water quality measures, temporary drainage
facilities, detention/retention basins, and drainage pretreatment facilities; drainage ways/channels,
pump stations, landscaping, and irrigation; access roads, gates, and fencing; striping and signage;
and the following:
• All storm drain lines and facilities in/associated with authorized facility roadways.
• Retention, detention, hydro-modification, and other drainage facilities.
Wastewater System Improvements
Authorized facilities include any and all on- and off-site backbone wastewater facilities designed
to meet the needs of development of the project. These facilities include pipelines and all
appurtenances thereto; manholes; tie-in to existing main line; force mains; lift stations; odor-
B-2
control facilities; sewer treatment plant improvements and permitting related thereto; and related
sewer system improvements, including but not limited to:
• All wastewater facilities in/associated with authorized facility roadways.
Solid Waste Improvements
Authorized facilities include any and all backbone solid waste improvements designed to meet the
needs of development of the project.
Park and Landscape Corridor Improvements
Authorized facilities include any and all improvements to parks and landscape corridors located in
the project.
Open Space Improvements
Authorized facilities include any and all open space improvements designed to meet the needs of
development of the project, including bike trails, bike/pedestrian bridges, storm drain crossings,
storm drain detention/retention, wetland mitigation, tree mitigation, agricultural mitigation or
wetland mitigation, property acquisition, endowment payments for open space management,
landscaping and irrigation, access gates and fencing, and related open space improvements.
Utilities
Authorized facilities include any and all on- and off-site utility improvements designed to meet
the needs of development of the project, including but not limited to:
• New 24” HDPE Sewer Trunk Line.
All utility improvements, easement payments, and land acquisition not located under or alongside
transportation improvements are considered authorized facilities.
B-3
FORMATION, ADMINISTRATIVE AND INCIDENTAL EXPENSES
It is anticipated that the following incidental expenses may be incurred for the Community
Facilities District:
Engineering services
Special tax consultant services
City review and administration
Bond counsel services
Bond counsel expenses
Disclosure counsel services
Disclosure counsel expenses
Independent municipal advisor services and expenses
Appraiser services
Market absorption study and real estate economist services
Initial bond transfer agent, fiscal agent, registrar and paying agent fees
Rebate calculation service set up charge
Bond printing
Offering memorandum printing and mailing costs
Publishing, mailing and posting of notices
Underwriter’s discount
Bond reserve fund
Capitalized interest
Bond syndication costs
Governmental notification and filing costs
Credit enhancement costs
Real estate acquisition costs
Rating agency fees
Charges and fees of City other than those waived
Certain annual costs may be included in each annual special tax levy. These include:
Annual bond transfer agent, fiscal agent, registrar and paying agent fees
Annual rebate calculation costs
Special tax consultant costs and administration expenses
Other necessary consultant costs
Costs of posting and collecting the special taxes
Personnel and Administrative costs of the City
Arbitrage rebate
Continuing disclosure reporting and compliance
B-4