HomeMy WebLinkAboutR-10998 formation of the Community Facilities District No. 2019-1 (San Luis Ranch), authorizing the levy of a special tax, establishing an appropriations limitR 10998
RESOLUTION NO. 10998 (2019 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, OF FORMATION OF THE CITY OF SAN LUIS
OBISPO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (SAN LUIS
RANCH), AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN THE
COMMUNITY FACILITIES DISTRICT AND ESTABLISHING AN
APPROPRIATIONS LIMIT FOR THE COMMUNITY FACILITIES
DISTRICT
WHEREAS, on February 19, 2019, the City Council (the “City Council”) of the City of
San Luis Obispo (the “City”), pursuant to the Mello-Roos Community Facilities Act of 1982 (the
“Act”), adopted a resolution entitled “A Resolution of the City Council of the City of San Luis
Obispo, California of Intention to Establish a Community Facilities District and to Authorize the
Levy of Special Taxes” (the “Resolution of Intention”), stating its intention to establish a
community facilities district (the “Community Facilities District”) proposed to be named City of
San Luis Obispo Community Facilities District No. 2019-1 (San Luis Ranch), to authorize the levy
of special taxes within the Community Facilities District to finance certain public facilities and
setting the date for a public hearing to be held on the establishment of the Community Facilities
District; and
WHEREAS, pursuant to the Resolution of Intention, notice of said public hearing was
published in the New Times, a newspaper of general circulation published in the area of the
Community Facilities District, in accordance with the Act; and
WHEREAS, on this date, the City Council opened, conducted and closed said public
hearing; and
WHEREAS, pursuant to the Resolution of Intention, each officer of the City who is or
will be responsible for providing one or more of the proposed types of public facilities was directed
to study, or cause to be studied, the proposed Community Facilities District and, at or before said
public hearing, file a report with the City Council containing a brief description of the public
facilities by type that will in his or her opinion be required to adequately meet the needs of the
Community Facilities District, and his or her estimate of the c ost of providing such public facilities;
such officers were also directed to estimate the fair and reasonable cost of the public facilities
proposed to be purchased as completed public facilities and of the incidental expenses proposed
to be paid; and
WHEREAS, said report was so filed with the City Council and made a part of the record
of said public hearing; and
WHEREAS, at the hearing, the City Council proposed to modify the Resolution of
Intention so as to change the rate and method of apportionment of the special tax (the “Original
Rate and Method”) originally proposed to be levied within the Community Facilities District to
make certain clarifications; and
Resolution No. 10998 (2019 Series) Page 2
R 10998
WHEREAS, at the hearing, the City Council adopted a resolution entitled “A Resolution
of the City Council of the City of San Luis Obispo, California Modifying Resolution of Intention
and Approving Amended and Restated Rate and Method of Apportionment” modifying the
Resolution of Intention so as to amend and restate the Original Rate and Method in its entirety;
and
WHEREAS, at the hearing, the testimony of all persons for or against the establishment
of the Community Facilities District, the extent of the Community Facilities District and the
furnishing of the specified types of public facilities was heard; and
WHEREAS, written protests against the establishment of the Community Facilities
District, the furnishing of any specified type or types of facilities within the Community Facilities
District or the levying of any specified special tax were not made or filed at or before said hearing
by 50% or more of the registered voters, or six registered voters, whichever is more, residing within
the territory proposed to be included in the Community Facilities District, or the owners of one-
half or more of the area of land in the territory proposed to be included in the Community Facilities
District and not exempt from the special tax; and
WHEREAS, there has been filed with the City Clerk of the City a letter from the Registrar
of Voters of the County of San Luis Obispo indicating that no persons were registered to vote
within the territory of the proposed Community Facilities District as of January 17, 2019, and,
accordingly, that 12 or more persons have not been registered to vote within the territory of the
proposed Community Facilities District for each of the 90 days preceding the close of said public
hearing; and
WHEREAS, Section 53314.9 of the Act provides that, at any time either before or after
the formation of a community facilities district, the legislative body may accept advances of funds
from any source, including, but not limited to, private persons or private entities and may provide,
by resolution, for the use of those funds for any authorized purpose, including, but not limited to,
paying any cost incurred by the local agency in creating a community facilities district; and
WHEREAS, Section 53314.9 of the Act further provides that the legislative body may
enter into an agreement, by resolution, with the person or entity advancing the funds, to repay all
or a portion of the funds advanced, as determined by the legislative body, with or without interest,
under all the following conditions: (a) the proposal to repay the funds is included in both the
resolution of intention to establish a community facilities district adopted pursuant to Section
53521 of the Act and in the resolution of formation to establish a community facilities district
pursuant to Section 53325.1 of the Act, (b) any proposed special tax is approved by the qualified
electors of the community facilities district pursuant to the Act, and (c) any agreement shall specify
that if the qualified electors of the community facilities district do not approve the proposed special
tax, the local agency shall return any funds which have not been committed for any authorized
purpose by the time of the election to the person or entity advancing the funds; and
Resolution No. 10998 (2019 Series) Page 3
R 10998
WHEREAS, the City and MI San Luis Ranch, LLC (“MI San Luis Ranch”) entered into
a Deposit and Reimbursement Agreement, dated as of February 1, 2019 (the “Deposit
Agreement”), that provides for the advancement of funds by MI San Luis Ranch to be used to pay
costs incurred in connection with the establishment of the Community Facilities District and the
issuance of special tax bonds thereby, and provides for the reimbursement to MI San Luis Ranch
of such funds advanced, without interest, from the proceeds of any such bonds issued by the
Community Facilities District; and
WHEREAS, in accordance with Section 53314.9 of the Act, the City desires to accept
such advances and to reimburse MI San Luis Ranch pursuant to the Deposit Agreement, without
interest, from the proceeds of special tax bonds issued by the Community Facilities District; and
WHEREAS, the City Council unanimously certified a Final Environmental Impact Report
(FEIR) prepared pursuant to the California Environmental Quality Act (CEQA), and approved the
project on July 18, 2017, as memorialized in City Council Resolution No. 10822 (2017 Series). A
Notice of Determination (NOD) was prepared, and there were no legal challenges to the adequacy
of the Final EIR during the 30-day statute of limitations associated with the NOD, pursuant to
CEQA (PRC Section 21167 and CEQA Guidelines Section 15094). A Supplement to the Final
EIR (“Final Supplemental EIR” or “FSEIR”) was prepared to address the Specific Plan
Amendment and certified in conjunction with the approval of that amendment on July 17, 2018.
In addition, and Addendum to the Final EIR was prepared to address a minor modification to the
Transportation Impact Study (TIS) that formed the basis for determining traffic-related impacts
under CEQA. This Addendum was approved in July 2018 and is part of the CEQA record.
Development and other related administrative actions related to project financing, including the
Development Agreement and CFD, are collectively addressed in the Final EIR, Final
Supplemental EIR and Addendum. No further environmental impacts are anticipated as a result of
the CFD. The CFD is also Statutorily Exempt from CEQA as part of “an ongoing project”, as
defined in Section 15261 of the CEQA Guidelines.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. The foregoing recitals are true and correct.
SECTION 2. The Community Facilities District is hereby established pursuant to the Act.
SECTION 3. The Community Facilities District is hereby named “City of San Luis
Obispo Community Facilities District No. 2019-1 (San Luis Ranch).”
Resolution No. 10998 (2019 Series) Page 4
R 10998
SECTION 4. The public facilities (the “Facilities”) proposed to be financed by the
Community Facilities District pursuant to the Act are described under the caption “Facilities” on
Exhibit A hereto, which is by this reference incorporated herein. All of the Facilities to be financed
will have an estimated useful life of five years or longer. They are public improvements that the
City or another governmental entity is authorized by law to construct, own or operate or to which
they contribute revenue. The Facilities to be financed are necessary to meet increased demands
placed upon the City as the result of the development planned to occur in the proposed Community
Facilities District. The incidental expenses proposed to be incurred are identified under the caption
“Formation, Administrative and Incidental Expenses” on Exhibit A hereto. All or any portion of
the Facilities may be financed through a financing plan, including, but not limited to, a lease, lease-
purchase or installment-purchase arrangement. To the extent the Facilities will not be constructed
by the City, in the opinion of the City the public interest will not be served by allowing the property
owners in the Community Facilities District to intervene in a public bidding process pursuant to
Section 53329.5(a) of the Act.
SECTION 5. The proposed special tax to be levied within the Community Facilities
District has not been precluded by majority protest pursuant to Section 53324 of the Act.
SECTION 6. Except where funds are otherwise available, a special tax sufficient to pay
for all Facilities, secured by recordation of a continuing lien against all nonexempt real property
in the Community Facilities District, will be annually levied within the Community Facilities
District. The [amended and restated] rate and method of apportionment of the special tax (the “Rate
and Method”), in sufficient detail to allow each landowner within the proposed Community
Facilities District to estimate the maximum amount that he or she will have to pay, is described in
Exhibit B attached hereto, which is by this reference incorporated herein. The conditions under
which the obligation to pay the special tax to pay for Facilities may be prepaid and permanently
satisfied are specified in the Rate and Method. The special tax will be collected in the same manner
as ordinary ad valorem property taxes or in such other manner as the City Council shall determine,
including direct billing of the affected property owners.
SECTION 7. The tax year after which no further special tax to pay for Facilities will be
levied against any parcel used for private residential purposes is specified in the Rate and Method.
Under no circumstances shall the special tax to pay for Facilities in any fiscal year against any
parcel used for private residential purposes be increased as a consequence of delinquency or default
by the owner or owners of any other parcel or parcels within the Community Facilities District by
more than 10% above the amount that would have been levied in that fiscal year had there never
been any such delinquencies or defaults. For purposes of this paragraph, a parcel shall be
considered “used for private residential purposes” not later than the date on which an occupancy
permit for private residential use is issued.
Resolution No. 10998 (2019 Series) Page 5
R 10998
SECTION 8. Pursuant to Section 53344.1 of the Act, the City Council hereby reserves
to itself the right and authority to allow any interested owner of property within the Community
Facilities District, subject to the provisions of said Section 53344.1 and to those conditions as it
may impose, and any applicable prepayment penalties as prescribed in the bond indenture or
comparable instrument or document, to tender to the Community Facilities District treasurer in
full payment or part payment of any installment of the special taxes or the interest or penalties
thereon which may be due or delinquent, but for which a bill has been received, any bond or other
obligation secured thereby, the bond or other obligation to be taken at par and credit to be given
for the accrued interest shown thereby computed to the date of tender.
SECTION 9. The name, address and telephone number of the office that will be
responsible for preparing annually a current roll of special tax levy obligations by assessor’s parcel
number and that will be responsible for estimating further special tax levies pursuant to Section
53340.2 of the Act are as follows: Community Development Director, City of San Luis Obispo,
990 Palm Street, San Luis Obispo, California 93401, (805) 781-7187.
SECTION 10. U pon recordation of a notice of special tax lien pursuant to Section 3114.5
of the California Streets and Highways Code, a continuing lien to secure each levy of the special
tax shall attach to all nonexempt real property in the Community Facilities District and this lien
shall continue in force and effect until the special tax obligation is prepaid and permanently
satisfied and the lien canceled in accordance with law or until collection of the tax by the City
Council ceases.
SECTION 11. The boundary map of the Community Facilities District has been recorded
in San Luis Obispo County in Book 6 at Page 12 of Maps of Assessments and Community
Facilities Districts in the San Luis Obispo County Recorder’s Office (Document No.
20190007546).
SECTION 12. The annual appropriations limit, as defined by subdivision (h) of Section
8 of Article XIII B of the California Constitution, of the Community Facilities District is hereby
established at $2,500,000.
SECTION 13. Pursuant to the provisions of the Act, the levy of the special tax and a
proposition to establish the appropriations limit specified above shall be subject to the approval of
the qualified electors of the Community Facilities District at a special election. The City Council
hereby finds and determines that no persons were registered to vote within the territory of the
proposed Community Facilities District as of January 17, 2019, and that 12 or more persons have
not been registered to vote within the territory of the Community Facilities District for each of the
90 days preceding the close of the public hearing held by the City Council on the establishment of
the Community Facilities District. Accordingly, pursuant to Section 53326 of the Act, the vote
shall be by the landowners of the Community Facilities District and each person who is the owner
of land as of the close of said public hearings, or the authorized representative thereof, shall have
one vote for each acre or portion of an acre that he or she owns within the Community Facilities
District not exempt from the special tax. The voting procedure shall be by mailed or hand-delivered
ballot.
Resolution No. 10998 (2019 Series) Page 6
R 10998
SECTION 14. MI San Luis Ranch has heretofore advanced certain funds, and may
advance additional funds, which have been or may be used to pay costs incurred in connection
with the establishment of the Community Facilities District and the issuance of special tax bonds
thereby. The City Council has previously approved the acceptance of such funds for the purpose
of paying costs incurred in connection with the establishment of the Community Facilities District
and the issuance of special tax bonds thereby. The City Council proposes to repay all or a portion
of such funds expended for such purpose, solely from the proceeds of such bonds, pursuant to the
Deposit Agreement. The Deposit Agreement is hereby incorporated herein as though set forth in
full herein.
SECTION 15. The City Council hereby finds and determines that all proceedings up to
and including the adoption of this Resolution were valid and in conformity with the requirements
of the Act. In accordance with Section 53325.1 of the Act, such finding shall be final and
conclusive.
SECTION 16. The officers, employees and agents of the City are hereby authorized and
directed to take all actions and do all things which they, or any of them, may deem necessary or
desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions
hereof.
Resolution No. 10998 (2019 Series) Page 7
SECTION 17. This Resolution shall take effect immediately upon its adoption.
Upon motion of Council Member Christianson, seconded by Council Member Gomez, and on the
following roll call vote:
AYES: Council Members Christianson, Gomez, and Stewart,
Vice Mayor Pease and Mayor Harmon
NOES: None
ABSENT: None
The foregoing resolution was adopted this 2nd day of A
ATTEST:
L
Teresa Purrington
City Clerk
APP
Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this 1 day of 1 2D 1
1 —
Teresa Purrington
City Clerk
Resolution No. 10998 (2019 Series)
EXHIBIT A
R 10998
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)
Resolution No. 10998 (2019 Series)
EXHIBIT A
R 10998
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-
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.
Resolution No. 10998 (2019 Series)
EXHIBIT A
R 10998
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.
Resolution No. 10998 (2019 Series)
EXHIBIT A
R 10998
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
Resolution No. 10998 (2019 Series)
EXHIBIT A
R 10998
EXHIBIT B (ATTACHMENT J PROVIDED SEPARATELY AS AGENDA REPORT
ATTACHMENT)
PROPOSED [AMENDED AND RESTATED] RATE AND METHOD OF
APPORTIONMENT OF SPECIAL TAX
Resolution No. _____ (2019 Series) Page 2
R ______
CITY CLERK’S CERTIFICATE
I, the undersigned, duly appointed and qualified City Clerk of the City of San Luis Obispo
(the “City”), certify that attached is a full, true and correct copy of Resolution No. _______,
adopted April 2, 2019, during a meeting of the City Council of the City. Such meeting was duly
and legally held at the regular meeting place of the City Council. All of the members of said council
had due notice of such meeting and a majority thereof was present at such meeting.
I have carefully compared the same with the original minutes of said meeting on file and
of record in my office, and the foregoing is a full, true and correct copy of such resolution adopted
at said meeting and entered in said minutes. Said resolution has not been amended, modified or
rescinded since the date of its adoption, and the same is now in full force and effect.
Dated:
By:
City Clerk
Economic & Planning Systems, Inc. (EPS)1 F:\Active Projects\182000\181049 San Luis Ranch CFD\Rate and Method\181049 rm9 FINAL.docx
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.
Resolution No. 10998 (2019 Series)
EXHIBIT B
Rate, Method of Apportionment, and Manner of Collection of Special Tax
Exhibit A March 7, 2019
Economic & Planning Systems, Inc. (EPS)2 F:\Active Projects\182000\181049 San Luis Ranch CFD\Rate and Method\181049 rm9 FINAL.docx
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.
Resolution No. 10998 (2019 Series)
EXHIBIT B
Resolution No. 10998 (2019 Series)
EXHIBIT B
Rate, Method of Apportionment, and Manner of Collection of Special Tax
Exhibit A March 7, 2019
Economic & Planning Systems, Inc. (EPS) 3 F:\Active Projects\182000\181049 San Luis Ranch CFD\Rate and Method\181049 rm9 FINAL.docx
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.
Resolution No. 10998 (2019 Series)
EXHIBIT B
Rate, Method of Apportionment, and Manner of Collection of Special Tax
Exhibit A March 7, 2019
Economic & Planning Systems, Inc. (EPS) 4 F:\Active Projects\182000\181049 San Luis Ranch CFD\Rate and Method\181049 rm9 FINAL.docx
“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 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.
Resolution No. 10998 (2019 Series)
EXHIBIT B
Rate, Method of Apportionment, and Manner of Collection of Special Tax
Exhibit A March 7, 2019
Economic & Planning Systems, Inc. (EPS) 5 F:\Active Projects\182000\181049 San Luis Ranch CFD\Rate and Method\181049 rm9 FINAL.docx
“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.
Resolution No. 10998 (2019 Series)
EXHIBIT B
Rate, Method of Apportionment, and Manner of Collection of Special Tax
Exhibit A March 7, 2019
Economic & Planning Systems, Inc. (EPS) 6 F:\Active Projects\182000\181049 San Luis Ranch CFD\Rate and Method\181049 rm9 FINAL.docx
“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, 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.
“Taxable Parcel” means any Parcel that is not a Tax-Exempt Parcel.
Resolution No. 10998 (2019 Series)
EXHIBIT B
Rate, Method of Apportionment, and Manner of Collection of Special Tax
Exhibit A March 7, 2019
Economic & Planning Systems, Inc. (EPS) 7 F:\Active Projects\182000\181049 San Luis Ranch CFD\Rate and Method\181049 rm9 FINAL.docx
“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. D uration 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.
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.
Resolution No. 10998 (2019 Series)
EXHIBIT B
Rate, Method of Apportionment, and Manner of Collection of Special Tax
Exhibit A March 7, 2019
Economic & Planning Systems, Inc. (EPS) 8 F:\Active Projects\182000\181049 San Luis Ranch CFD\Rate and Method\181049 rm9 FINAL.docx
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 Minimum
Annual Special Tax for an Undeveloped Parcel (Lot 1) is determined by multiplying the
Minimum Annual Special Tax per Acre times the Acreage of the Parcel. 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. Map 1 shows the location of expected future
Parcels in each Tax Category. Future Parcels are identified in Map 1 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
Resolution No. 10998 (2019 Series)
EXHIBIT B
Rate, Method of Apportionment, and Manner of Collection of Special Tax
Exhibit A March 7, 2019
Economic & Planning Systems, Inc. (EPS) 9 F:\Active Projects\182000\181049 San Luis Ranch CFD\Rate and Method\181049 rm9 FINAL.docx
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 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 and Building Square Footage range, is assigned to each of the 135 Units
assigned to Lot 1, as shown in Map 1. 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 to Lot 1 at formation. As one or more 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
Lot 1 in Attachment 1.
2. At issuance of a Building Permit for Multifamily For-Sale Parcels, assign the Maximum
Annual Special Tax per Unit, as shown in Attachment 1 for the Tax Category and
Building Square Footage range, to each Unit as shown in the Building Permit.
3. If the Building Permit has been issued to construct all planned Units (as shown in
Attachment 1) for Lot 1, 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
Maximum Annual Special Tax identified in Step 4.e.1, assign this 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,
Proportionately increase the Maximum Annual Special Tax per Unit for each Unit until the
sum of the amount of the Maximum Annual Special Tax for each Unit is equal to the
Resolution No. 10998 (2019 Series)
EXHIBIT B
Rate, Method of Apportionment, and Manner of Collection of Special Tax
Exhibit A March 7, 2019
Economic & Planning Systems, Inc. (EPS) 10 F:\Active Projects\182000\181049 San Luis Ranch CFD\Rate and Method\181049 rm9 FINAL.docx
amount identified in Step 4.e.1.
The Administrator shall update Attachment 1 showing the newly assigned
Maximum Annual Special Tax per Unit and to the Original or Successor Parcel.
6. If the construction of the proposed 135 Units is a phased build out over more than one
Fiscal Year, assign the Maximum Annual Special Tax to Developed Parcels based upon the
Building Square Footage of each Unit to each Unit (as shown in the Building Permit).
a. Multiply the Maximum Annual Special Tax for each Unit (as shown in Attachment
1) times the number of Units identified in the Building Permit.
b. Subtract the amount of Maximum Annual Special Tax from Step 4.e.6.a the
amount of Maximum Annual Special Tax identified in Step 4.e.1. Assign this
amount as the Maximum Annual Special Tax to be assigned to the Remainder
Parcel
c. Repeat the above procedures in the following Fiscal Year(s) to assign the
Minimum Annual Special Tax and Maximum Annual Special Tax to the remaining
Units assigned to the Remainder Parcel until the Special Taxes are assigned to
135 Units, or the Administrator determines that all Units have been constructed
for Lot 1.
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 that are
subject to the land use change or remapping.
Resolution No. 10998 (2019 Series)
EXHIBIT B
Rate, Method of Apportionment, and Manner of Collection of Special Tax
Exhibit A March 7, 2019
Economic & Planning Systems, Inc. (EPS) 11 F:\Active Projects\182000\181049 San Luis Ranch CFD\Rate and Method\181049 rm9 FINAL.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 require that the Maximum Annual Special Tax be prepaid using the
provisions of Section 7. The Maximum Annual Special Tax for the Workforce/Affordable
Units is assigned using Tax Categories in Attachment 2.
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
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
Resolution No. 10998 (2019 Series)
EXHIBIT B
Rate, Method of Apportionment, and Manner of Collection of Special Tax
Exhibit A March 7, 2019
Economic & Planning Systems, Inc. (EPS) 12 F:\Active Projects\182000\181049 San Luis Ranch CFD\Rate and Method\181049 rm9 FINAL.docx
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
A pp ortionment
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:
a. Compute the Annual Costs using the definition of Annual Costs in Section 2.
Resolution No. 10998 (2019 Series)
EXHIBIT B
Rate, Method of Apportionment, and Manner of Collection of Special Tax
Exhibit A March 7, 2019
Economic & Planning Systems, Inc. (EPS) 13 F:\Active Projects\182000\181049 San Luis Ranch CFD\Rate and Method\181049 rm9 FINAL.docx
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. P repayment 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:
Resolution No. 10998 (2019 Series)
EXHIBIT B
Rate, Method of Apportionment, and Manner of Collection of Special Tax
Exhibit A March 7, 2019
Economic & Planning Systems, Inc. (EPS) 14 F:\Active Projects\182000\181049 San Luis Ranch CFD\Rate and Method\181049 rm9 FINAL.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.
Resolution No. 10998 (2019 Series)
EXHIBIT B
Rate, Method of Apportionment, and Manner of Collection of Special Tax
Exhibit A March 7, 2019
Economic & Planning Systems, Inc. (EPS) 15 F:\Active Projects\182000\181049 San Luis Ranch CFD\Rate and Method\181049 rm9 FINAL.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.a.8. 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.a.7 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.
c. 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. I nterpretation, Application, and Appeal of
S pe cial 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.
Resolution No. 10998 (2019 Series)
EXHIBIT B
Rate, Method of Apportionment, and Manner of Collection of Special Tax
Exhibit A March 7, 2019
Economic & Planning Systems, Inc. (EPS) 16 F:\Active Projects\182000\181049 San Luis Ranch CFD\Rate and Method\181049 rm9 FINAL.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.
Resolution No. 10998 (2019 Series)
EXHIBIT B
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 99 $2,630 $260,370 $3,110 $307,890
Less than 1,850 sq. ft.94 $2,630 $247,220 $2,630 $247,220
Workforce/Affordable Units [3]5 $0 $0 $0
LDR Subtotal 198 $507,590 $555,110
Medium Density Residential (MDR) 5.14
1,600 sq. ft. and greater 41 $2,150 $88,150 $2,630 $107,830
Less than 1,600 sq. ft.29 $2,150 $62,350 $2,150 $62,350
Workforce/Affordable Units [3]13 $0 $0 $0
MDR Subtotal 83 $150,500 $170,180
High Density Residential (HDR) - For Sale [2]
Multifamily For-Sale 6.62 per Unit per Unit
1,200 sq. ft. and greater 67 $0 $0 $1,910 $127,970
Less than 1,200 sq. ft.68 $0 $0 $1,600 $108,800
Workforce/Affordable Units [3]30 $0 $0 $0
per Acre per Acre
Lot 1 - Undeveloped Parcel [4]$32,629 $216,004 $0 $0
Lot 2 For Rent Multifamily 4.35 134 $0 $0 $0
HDR Subtotal 10.97 299 $216,004 $236,770
Residential Use Totals 31.62 580 $874,094 $962,060
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 131.36 $962,060
"att1"
[1] The Minimum Annual Special Tax and Maximum Annual Special Tax per Unit/Acre are increased by 2% annually following the Base Year.
[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.
[4] Lot 1 is assigned an Undeveloped Parcel Minimum Annual Special Tax of $32,629 per Taxable Acre at formation of the CFD.
Lot Numbers
11 to 208
Lot Numbers
220 to 302
Minimum Annual Special Tax Maximum Annual Special Tax
Lot 1
Prepared by EPS 3/13/2019 F:\Active Projects\182000\181049 San Luis Ranch CFD\Models\181049 model 4
Resolution No. 10998 (2019 Series)
EXHIBIT B
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
1,200 sq. ft. and greater $0 $1,910
Less than 1,200 sq. ft.$0 $1,600
Less than 600 sq. ft.$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.
Prepared by EPS 3/13/2019 F:\Active Projects\182000\181049 San Luis Ranch CFD\Models\181049 model 4
Resolution No. 10998 (2019 Series)
EXHIBIT B
COMRWV (3)RMH (2)SPRINTL3PBPBPBPBPBPBPBPBDIDI1050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863Resolution No. 10998 (2019 Series) EXHIBIT B