Resolution 2000-87
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RESOLUTION NO. 2000-87
A RESOLUTION OF FORMATION OF
A COMMUNITY FACILITIES DISTRICT
CITY OF GILROY
Community Facilities Disbict No. 2000-1
(Highway 152)
RESOLVED by the City Council (the "Council") of the City of Gilroy (the "City"),
County of Santa Oara, State of California, that:
WHEREAS, on November 17, 2000, this Council adopted a resolution entitled "A
Resolution of Intention to Establish a Community Facilities District" (the "Resolution of
Intention"), stating its intention to form Community Facilities District No, 2000-1(Highway 152)
(the "CPO"), of the City pursuant to the Mello-Roos Community Facilities Act of 1982, as
amended, Chapter 2.5 of Part 1 of ~ivision 2 of Title 5, commencing with Section 53311, of the
California Government Code (the" Act");
WHEREAS, the Resolution of Intention, incorporating a map of the proposed
boundaries of the CPO and stating the facilities to be provided, the cost of providing such
facilities, and the rate and method of apportionment of the special tax to be levied within the
CPO to pay the principal and interest on bonds proposed to be issued with respect to the CFO,
is on file with the City Oerk and the provisions thereof are incorporated herein by this
reference as if fully set forth herein;
WHEREAS, the facilities stated in the Resolution of Intention are as set forth in Exhibit
A attached hereto and hereby made a part hereof;
WHEREAS, on this date, this Council held a noticed public hearing as required by the
Act and the Resolution of Intention relative to the proposed formation of the CFO;
WHEREAS, at the hearing all interested persons desiring to be heard on all matters
pertaining to the formation of the CFD, the facilities to be provided therein and the levy of such
special tax were heard and a full and fair hearing was held;
WHEREAS, at the hearing, evidence was presented to this Council on the matters
before it, including a report caused to be prepared (the "Report") as to the facilities to be
provided through the CFD and the costs thereof, a copy of which is on file with the City Clerk,
and this Council at the conclusion of said hearing is fully advised in the premises;
WHEREAS, written protests with respect to the formation of the CPD, the furnishing of
specified types of facilities and the rate and method of apportionment of the special taxes have
not been filed with the City Clerk by fifty percent (50%) or more of the registered voters
residing within the territory of the CFO t.. property owners of one-half (1/2) or more of the
area of land within the CFO and not exerr\pt from the proposed special tax;
RESOLUTION NO, 2000-87
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WHEREAS, the special tax proposed to be levied in the CFD to pay for the proposed
facilities to be provided therein, as set forth in Exhibit B hereto, has not been eliminated by
protest by fifty percent (50%) or more of the registered voters residing within the territory of
the CFD or the owners of one-half (1/2) or more of the area of land within the CFD and not
exempt from the special tax,
NOW, THEREFORE, IT IS HEREBY ORDERED as follows:
1, Recitals Correct. The foregoing recitals are true and correct,
2. No Majority Protest, The proposed special tax to be levied within the CFD has
not been precluded by majority protest pursuant to section 53324 of the Act,
3. Prior Proceedings Valid. All prior proceedings taken by this City Council in
connection with the establishment of the CFD and the levy of the special tax have been duly
considered and are hereby found and determined to be valid and in conformity with the Act,
4, Name of CFD, The community facilities district designated "Community
Facilities District No. 2000-1 (Highway 152)" of the City is hereby established pursuant to the
Act,
5. Boundaries of CFD. The boundaries of the CFD, as set forth in the map of the
CFD heretofore recorded in the Santa Clara County Recorder's Office on December 1, 2000 in
Book 34 at Page 55 of Maps of Assessment and Community Facilities Districts, are hereby
approved, are incorporated herein by reference and shall be the boundaries of the CFD,
6, Description of Facilities. The type of public facilities proposed to be financed
by the CFD and pursuant to the Act shall consist of those items listed as facilities in Exhibit A
hereto and by this reference incorporated herein (the "Facilities").
7, Special Tax.
a, Except to the extent that funds are otherwise available to the CFD to pay
for the Facilities and/or the principal and interest as it becomes due on bonds of the
CFD issued to finance the Facilities, a special tax (the "Special Tax") sufficient to pay the
costs thereof, secured by the recordation of a continuing lien against all non-exempt real
property in the CFD, is intended to be levied annually within the CFD, and collected in
the same manner as ordinary ad valorem property taxes or in such other manner as may
be prescribed by resolution of this Council
b. The proposed rate and method of apportionment of the Special Tax
among the parcels of real property within the CFD, in sufficient detail to allow each
landowner within the proposed CFD to estimate the maximum amount such owner will
have to pay, are shown in Exhibit B attached hereto and hereby incorporated herein.
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c. In the case of any Special Tax to pay for the Facilities and to be levied
against any parcel used for private residential purposes: (i) the maximum special tax
shall be specified as a dollar amount which shall be calculated and thereby established
not later than the date on which the parcel is first subject to the tax because of its use for
private residential purposes and which amount shall not be increased over time over
two percent per year; (ii) the tax year after which no further Special Tax subject to this
sentence shall be levied or collected shall be as set forth in Exhibit B hereto; and (ill)
under no circumstances wiII the Special Tax levied against any parcel subject to this
sentence be increased as a consequence of delinquency or default by the owner of any
other parcel within the CFD by more than ten percent, For the purposes hereof, a parcel
is used for "private residential purposes" not later than the date on which an occupancy
permit for private residential use is issued,
8, Increased Demands. It is hereby found and determined that the Facilities are
necessary to meet increased demands placed upon local agencies as the result of development
occurring in the CFD,
9, Responsible Official. The Administrative Services Director of the City of
Gilroy, City Hall, 7351 Rosanna Street, Gilroy, California 95020-6197, telephone number (408)
846-0212 is the officer of the City who will be responsible for preparing annually a current roll
of special tax levy obligations by assessor's parcel number and who wiII be responsible for
estimating future special tax levies pursuant to the Act,
10, Tax Lien. Upon recordation of a notice of special tax lien under Section 3114.5 of
the Streets and Highways Code of California, a continuing lien to secure each levy of the
special tax shall attach to all nonexempt real property in the CFD and this lien shall continue in
force and effect until the special tax obligation is prepaid and permanently satisfied and the lien
canceled under the Act or until collection of the special tax by the City ceases,
11. Appropriations Limit. Under the Act, the annual appropriations limit, as
defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, of the
CFD is hereby preliminarily established at $17,500,000 and the appropriations limit shall be
submitted to the voters of the CFD as hereafter provided, The proposition establishing the
annual appropriations limit shall become effective if approved by the qualified electors voting
thereon and shall be adjusted in accordance with the applicable provisions of the Act.
12. Election. Pursuant to the provisions of the Act, the proposition of the levy of the
special tax and the proposition of the establishment of the appropriations limit specified above
shall be submitted to the qualified electors of the CFD at an election the time, place and
conditions of which election shall be as specified by a separate resolution of this Council.
13, Effective Date. This resolution shall take effect upon its adoption,
RESOLUTION NO. 2000-87
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PASSED AND ADOPTED this 18th day of December, 2000, by the following vote:
AYES:
COUNCILMEMBERS: MORALES, PINHEIRO, SUDOL, VELASCO,
SPRINGER
NOES:
COUNCILMEMBERS: G, ARELLANO, p, ARELLANO
ABSENT: COUNCILMEMBERS: NONE
APPROVED:
--;:'7;'""" U/7 -
Thomas W, Springer, May; r-----
~~d2""
Rho'nda PeIlin, City Oerk
RESOLUTION NO. 2000-87
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EXHIBIT A
CITY OF GILROY
Community Facilities District No. 2000-1
(Highway 152)
DESCRIPTION OF FACILITIES
The Facilities shown below are to be financed by the above-designated community
facilities district (the "CFD") of the City of Gilroy (the "City"). The Facilities shall include the
attributable costs of engineering, design, planning, environmental approvals, plan checking and
coordination, together with the expenses related to the issuance and sale of any special tax
bonds, including financial advisory fees, underwriters' discount, appraisals, reserve fund,
capitalized interest, bond counsel, special tax consultant, bond and official statement printing
and all other expenses incidental thereto, The Facilities shall be constructed pursuant to plans
and specifications approved by the City and the officials thereof, including the City Engineer
and the Facilities may be constructed under one or more contracts, as approved by the City,
The Facilities shall also include, as required, demolition and removal of existing unusable
improvements, clearing, grubbing, grading and the installation of monumentation, signs, signals,
landscaping and related irrigation systems, and the making of conforming improvements to
adjacent streets and other existing improvements. The Facilities consist generally of the
Highway 152 Improvements and the Other Improvements, as follows:
1. The Highway 152 Improvements include interchange improvements at U.s, 101
and Highway 152, consisting generally of: a new south-bound loop off-ramp, overcrossing
structure widening, modification of existing on-ramps; widening of Highway 152 to four lanes
between the Highway 101 interchange and Llagas Creek; installation of traffic signals on Hwy
152 at the north-bound off-ramp to Highway 101, Camino Arroyo, Wellington Blvd, (named for
identification only) and the employee parking lot entrance to Gilroy Foods; widening of the
existing Llagas Creek Bridge and old creek bridges; and transitioning from four to two lanes east
of the old creek bridge together with the construction and installation of pavement, curbs,
gutters, sidewalks and storm drainage facilities and safety lighting,
2, The Other Improvements are those necessitated by development in the CFD and
include additional frontage improvements within the proposed Highway 152 right-of-way
between the Highway 101 interchange and the Llagas Creek bridge and public street and utility
improvements for the properties within the CFD, consisting generally of: pavement widening;
new street construction; traffic signals; curb, gutter, sidewalk; underground utility facilities;
storm drainage, sanitary sewers and potable water facilities and; and street lighting,
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EXIllBIT B
CITY OF GILROY
COMMUNITY FACILITIES DISTRICT No. 2000-1
(Highway 152)
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
A Special Tax applicable to each Assessor's Parcel in Community Facilities District No, 2000-1
(Highway 152) [herein "CFD No. 2ooo-1"J shaU be levied and coUected according to the tax
liability determined by the City Council of the City of Gilroy, through the application of the
appropriate amount or rate for Taxable Property, as described below. AU of the property in CFD
No, 2000-1, unless exempted by law or by the provisions of Section E below, shaU be taxed for
the purposes, to the extent, and in the manner herein provided, including property subsequently
annexed to CFD No. 2000-1 unless a separate Rate and Method of Apportionment of Special Tax
is adopted for the annexation area.
A. DEFINITIONS
The terms hereinafter set forth have the foUowing meanings:
"Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel
Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the
applicable Final Map, parcel map, or other recorded County parcel map.
"Act" means the MeUo-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5,
(commencing with Section 53311), Division 2 of Title 5 of the Government Code of the State of
California,
"Administrator" shall mean the person or firm designated by the City to administer the Special Tax
according to this Rate and Method of Apportionment of Special Tax,
"Assessor's Parcel" or "Parcel" means a lot or parcel shown on an Assessor's Parcel Map with
an assigned Assessor's Parcel number.
"Assessor's Parcel Map" means an official map of the County Assessor of the County of Santa
Clara designating parcels by Assessor's Parcel Number.
"City" means the City of Gilroy,
"Council" means the City Council of the City of Gilroy, acting as the legislative body of CFD
No. 2000-1.
City of Gilroy CFD No. 2000-1
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"Development Trigger" means, for Improvement Area #4, that a Final Map has been recorded
or a building permit for new construction has been issued that will result in a use within the
Improvement Area other than food processing operations for ConAgra, Inc, As used herein, the
term "food processing operations" includes warehousing, shipping and other ancillary functions,
"Final Map" means a fmal map or Parcel map approved pursuant to the Subdivision Map Act
(California Government Code Section 66410 et seq,) that creates individual lots for which building
permits may be issued,
"Fiscal Year" means the period starting July 1 and ending on the following June 30,
"Highway 152 Bonds" means bonds or other debt (as defined in the Act), whether in one or more
series, issued by CFD No, 2000-1 under the Act to pay for the construction or acquisition of
improvements to Highway 152.
"Highway 152 Special Tax Requirement" means the amount necessary in any Fiscal Year (i) to
pay principal and interest on Highway 152 Bonds, (ii) to create or replenish reserve funds established
for Highway 152 Bonds, (iii) to cure any delinquencies in the payment of principal or interest on
Highway 152 Bonds which have occurred in the prior Fiscal Year or (based on delinquencies in the
payment of Special Taxes which have already taken place) are expected to occur in the Fiscal Year
in which the tax will be collected, (iv) to pay administrative expenses of the CFD that are not
associated with Supplemental Bonds, and (v) to pay construction expenses to be funded directly from
Special Tax proceeds, as applicable.
"Improvement Area" means one of the eight mutually exclusive geographic areas defined below
and identified in Attachment A of this Rate and Method of Apportionment of Special Tax,
"Improvement Area #1" means the geographic area that, at the time of formation of CFD No,
2000-1, was: (i) identified by Assessor's Parcel numbers 841-17-80 and 841-17-04, (ii) identified
on the CFD boundary map as the Lands of Wellington, and (iii) identified in Attachment A of this
Rate and Method of Apportionment of Special Tax as Improvement Area #1.
"Improvement Area #2" means that geographic area that, at the time of formation of CFD No,
2000-1, was: (i) identified by Assessor's Parcel numbers 841-18-43 and 841-18-44, (ii) identified
on the CFD boundary map as the Lands of Tenth Street Enterprises, and (iii) identified in
Attachment A of this Rate and Method of Apportionment of Special Tax as Improvement Area #2.
"Improvement Area #3" means that geographic area that, at the time of formation of CFD No,
2000-1, was: (i) identified by Assessor's Parcel number 841-18-42, (ii) identified on the CFD
boundary map as the Lands of Machado, and (iii) identified in Attachment A of this Rate and
Method of Apportionment of Special Tax as Improvement Area #3.
"Improvement Area #4" means that geographic area that, at the time of formation of CFD No,
2000-1, was: (i) identified by Assessor's Parcel numbers 841-17-05,841-17-75,841-17-76,841-
17-77, 841-17-78 and 841-17-79, (ii) identified on the CFD boundary map as the Lands of
City ofGi/roy CFD No, 2000-1
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December 4.. 2000
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Conagra, Inc, and (iii) identified in Attachment A of this Rate and Method of Apportionment of
Special Tax as Improvement Area #4,
"Improvement Area #5" means that geographic area that, at the time of formation of CFD No.
2000-1, was: (i) identified by Assessor's Parcel number 841-67-23, (ii) identified on the CFD
boundary map as the Lands of Baba, and (iii) identified in Attachment A of this Rate and Method
of Apportionment of Special Tax as Improvement Area #5, In addition to the foregoing, any
property which annexes into CFD No, 2000-1 after formation of the CFD shall be added as part
of Improvement Area #5 and taxed pursuant to the procedure set forth in Section C,5 below,
"Improvement Area #6" means that geographic area that, at the time of fonnation of CFD No,
2000-1, was: (i) identified by Assessor's Parcel number 841-67-24, (ii) identified on the CFD
boundary map as the Lands of Headstart Nurseries, and (iii) identified in Attachment A of this
Rate and Method of Apportionment of Special Tax as Improvement Area #6,
"Improvement Area #7" means that geographic area that, at the time of formation of CFD No,
2000-1, was: (i) identified by Assessor's Parcel numbers 841-70-18, 841-70-19 and 841-70-21,
(ii) identified on the CFD boundary map as the Lands of Berry, and (iii) identified in Attachment
A of this Rate and Method of Apportionment of Special Tax as Improvement Area #7.
"Improvement Area #8" means that geographic area that, at the time of formation of CFD No,
2000-1, was: (i) identified by Assessor's Parcel number 841-67-20, (ii) identified on the CFD
boundary map as the Lands of South County Development, and (iii) identified in Attachment A
of this Rate and Method of Apportionment of Special Tax as Improvement Area #8,
"Maximum Special Tax" means the maximum Special Tax, determined in accordance with
Section C, that can be levied in any Fiscal Year.
"Public Property" means any property within the boundaries of CFD No. 2000-1 that is owned
by the federal government, State of California or other local governments or public agencies.
"Special Tax" means a Special Tax levied in any Fiscal Year to pay the Highway 152 Special Tax
Requirement and/or the Supplemental Bonds Special Tax Requirement,
"Subsequent Sale" means a sale of property within Improvement Area #2 which results in a
recalculation of the Special Tax to pay Supplemental Bonds on property within Improvement Area
#2 pursuant to Section C,2 below, Only one Subsequent Sale and one recalculation of the
Maximum Special Tax shall be permitted within Improvement Area #2; no such recalculations
shall occur within other Improvement Areas,
"Supplemental Bonds" means any Bonds, the debt service of which are secured by the
Supplemental Special Tax in Improvement Areas #1, #2, #3, #6, #7 or #8, that have been issued
to pay for public facilities other than improvements to Highway 152,
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"Supplemental Bonds Special Tax Requirement" means the amount necessary in any Fiscal Year
(i) to pay principal and interest on Supplemental Bonds, (ii) to create or replenish reserve funds
established for Supplemental Bonds, (iii) to cure any delinquencies in the payment of principal or
interest on Supplemental Bonds which have occurred in the prior Fiscal Year or (based on
delinquencies in the payment of Special Taxes which have already taken place) are expected to occur
in the Fiscal Year in which the tax will be collected, (iv) to pay administrative expenses of the CFD
that are not associated with the Highway 152 Bonds, and (v) to pay construction expenses to be
funded directly from Special Tax proceeds, as applicable.
"Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No. 2000-
1 which are not exempt from the Special Tax pursuant to law or Section E below.
B. DATA FOR ANNUAL ADMINISTRATION OF SPECIAL TAX
On or about July 1 of each Fiscal Year, the Administrator shall identify the current Assessor's
Parcel numbers for Taxable Property within each Improvement Area. If it is determined that one
or more Parcels include property in more than one Improvement Area, the Administrator shall
determine the Acreage that falls within each Improvement Area for purposes of determining the
Maximum Special Tax pursuant to Section C below.
On or about July 1 of each Fiscal Year, the Administrator shall also determine: (i) whether a
Supplemental Bond Issue has occurred for Improvement Areas #1, #2, #3, #6, #7 and/or #8, (ii)
whether a Subsequent Sale has occurred within Improvement Area #2, and whether a Development
Trigger has occurred on property in Improvement Area #4.
C. MAXIMUM SPECIAL TAX
], Improvement Area #]
The Maximum Special Tax in Improvement Area #1 is $2,046 per Acre until such time as
a Supplemental Bond Issue takes place for public improvements within Improvement Area
#1, at which time the Maximum Special Tax shall increase to $15,262 per Acre,
Notwithstanding the foregoing, the actual Special Tax ~ within Improvement Area #1
in any Fiscal Year to pay the Highway 152 Special Tax Requirement shall be the same per-
Acre amount that is levied to pay the Highway 152 Special Tax Requirement in
Improvement Area #5,
2, Improvement Area #2
The Maximum Special Tax in Improvement Area #2 is $2,046 per Acre until such time as
a Supplemental Bond Issue takes place for public improvements within Improvement Area
#2, at which time the Maximum Special Tax shall increase to $8,041 per Acre,
Notwithstanding the foregoing, the actual Special Tax levied within Improvement Area #2
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in any Fiscal Year to pay the Highway 152 Special Tax Requirement shall be the same per-
Acre amount that is levied to pay the Highway 152 Special Tax Requirement in
Improvement Area #5,
At such time as a Subsequent Sale takes place within Improvement Area #2, the property
that remains under the ownership of Tenth Street Enterprises shall be subject to a
Maximum Special Tax of $2,046 per Acre, and the property which is sold by Tenth Street
Enterprises shall be subject to a Maximinn Special Tax which is calculated as follows:
Step 1:
Step 2:
Step 3:
Step 4:
Based on an engineer's review of maps and development plans for
the property which was sold, determine the net acreage of the
property that was sold by reducing the gross acreage of the property
by the acreage expected to be dedicated for major roads and public
facility sites.
Reduce the net acreage determined in Step I by ten percent (10%)
to calculate the net taxable acreage,
Divide $471,044 (fiscal year 2002-03 dollars) by the net taxable
acreage from Step 2 to calculate the Maximum Special Tax per Acre
associated with Supplemental Bonds,
Add $2,046 per Acre to the amount determined in Step 3 to
determine the total Maximum' Special Tax for property sold by
Tenth Street Enterprises through the Subsequent Sale,
3. Improvement Area #3
The Maximum Special Tax in Improvement Area #3 is $1,023 per Acre until such time as
a Supplemental Bond Issue takes place for public improvements within Improvement Area
#3, at which time the Maximum Special Tax shall increase to $11,596 per Acre.
Notwithstanding the foregoing, the actual Special Tax ~ within Improvement Area #3
in any Fiscal Year to pay the Highway 152 Special Tax Requirement shall be one-half of
the per-acre amount that is levied to pay the Highway 152 Special Tax Requirement in
Improvement Area #5,
4, Improvement Area #4
No Special Tax shall be levied within Improvement Area #4 until such time as a
Development Trigger (as defined in Section A) occurs within Improvement Area #4, at
which time the Maximum Special Tax with respect to Parcels within Improvement Area
#4 the use of which has changed shall be $2,046 per Acre,
City of Gilroy CFD No. 2000-1
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City o/Gilroy CFD No. 2000-1
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5. Improvement Area #5
The Maximum Special Tax in Improvement Area #5 is $2,046 per Acre, Notwithstanding
the foregoing, the actual Special Tax kYkd within Improvement Area #5 in any Fiscal
Year to pay the Highway 152 Special Tax Requirement shall be the same per-Acre amount
that is levied to pay the Highway 152 Special Tax Requirement in Improvement Areas #1,
#2, #6, #7 and #8, and within Improvement Area #4 after a Development Trigger takes
place.
6, Improvement Area #6
The Maximum Special Tax in Improvement Area #6 is $2,046 per Acre until such time as
a Supplemental Bond Issue takes place for public improvements within Improvement Area
#6, at which time the Maximum Special Tax shall increase to $10,147 per Acre. '
Notwithstanding the foregoing, the actual Special Tax levied within Improvement Area #6
in any Fiscal Year to pay the Highway 152 Special Tax Requirement shall be the same per-
acre amount that is levied to pay the Highway 152 Special Tax Requirement in
Improvement Area #5,
7, Improvement Area #7
The Maximum Special Tax in Improvement Area #7 is $2,046 per Acre until such time as
a Supplemental Bond Issue takes place for public improvements within Improvement Area
#7, at which time the Maximum Special Tax shall increase to $8,730 per Acre,
Notwithstanding the foregoing, the actual Special Tax levied within Improvement Area #7
in any Fiscal Year to pay the Highway 152 Special Tax Requirement shall be the same per-
acre amount that is levied to pay the Highway 152 Special Tax Requirement in
Improvement Area #5,
8, Improvement Area #8
The Maximum Special Tax in Improvement Area #8 is $2,046 per Acre until such time as
a Supplemental Bond Issue takes place for public improvements within Improvement Area
#8, at which time the Maximum Special Tax shall increase to $7,861 per Acre.
Notwithstanding the foregoing, the actual Special Tax levied within Improvement Area #8
in any Fiscal Year to pay the Highway 152 Special Tax Requirement shall be the same per-
acre amount that is levied to pay the Highway 152 Special Tax Requirement in
Improvement Area #5,
* On July I, 2003 and on each July I thereafter, allfigures shown in Sections C.l through C.s
above shall be increased by an amount equal to 2.0% o/the amount in effect/or tile prior Fiscal
Year.
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D. METHOD OF LEVY AND COLLECTION OF THE SPECIAL TAX
1, Highway 152 Special Tax Requirement
Commencing with Fiscal Year 2002-03 and for each following Fiscal Year, the
Administrator shall determine the Highway 152 Special Tax Requirement to be collected
in that Fiscal Year. A Special Tax shali then be levied according to the following steps:
Step 1.
Step 2.
Step 3.
Using the Acreage reflected on Assessor's Parcel Maps, add
together the following: (i) Acreage of Taxable Property within
Improvement Areas #1, #2, #5, #6, #7 and #8, (ii) one-half of the
Acreage within Improvement Area #3, and (iii) if a Development
Trigger has occurred within Improvement Area #4, the Acreage of
Parcels within Improvement Area #4 the use of which has changed,
Divide the Highway 152 Special Tax Requirement for the Fiscal
Year by the Acreage calculated in Step 1 to determine a per-Acre
Special Tax.
For Assessor's Parcels in Improvement Areas #1, #2, #5, #6, #7
and #8, multiply the per-Acre Special Tax determined in Step 2 by
the Acreage of each Parcel to determine the Special Tax to be levied
on each Parcel to pay the Highway 152 Improvement Special Tax
Requirement (an additional Special Tax may be levied on Parcels in
Improvement Areas #1, #2, #6, #7 and/or #8 pursuant to Section
D,2 below). For Parcels within Improvement Area #3, multiply the
Acreage of each Parcel by one-half of the per-Acre Special Tax
determined in Step 2 to determine the Special Tax to be levied on
each Parcel (an additional Special Tax may be levied on Parcels in
Improvement Area #3 pursuant to Section D.2 below), If a
Development Trigger has occurred within Improvement Area #4,
multiply the per-Acre Special Tax determined in Step 2 by the
Acreage of each Parcel the use of which has changed to determine
the Special Tax to be levied on each such Parcel.
2, Supplemental Bonds Special Tax Requirement
Commencing with Fiscal Year 2002-03 and for each following Fiscal Year, the
Administrator shall determine the Supplemental Bonds Special Tax Requirement to be
collected in that Fiscal Year within Improvement Areas #1, #2, #3, #6, #7 and/or #8 if
Supplemental Bonds have been issued for some or all of the Improvement Areas,
Supplemental Bonds sold to fund improvements within an Improvement Area shall be
secured solely by Special Taxes collected within that Improvement Area, No Special Tax
City of Gilroy CFD No. 2000-1
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shall be levied in any Improvement Area to p~ debt service .on Supplemental Bonds sold
to fund improvements in another Improvement Area.
Once the Administrator has determined the separate Supplemental Bonds Special Tax
Requirement for Improvement Areas #1, #2, #3, #6, #7 and/or #8 (as applicable), a
Special Tax shall then be levied, in addition to the Special Tax levied for Highway 152
improvements pursuant to Section D,I above, according to the following steps:
Step 1.
Step 2.
Step 3.
E. EXEMPTIONS
Using the Acreage reflected on Assessor's Parcel Maps, determine
the Acreage of Taxable Property within Improvement Areas on
behalf of which Supplemental Bonds have been sold, If a
Subsequent Sale has occurred within Improvement Area #2, only the
Acreage of the property which was sold by Tenth Street Enterprises
shall be used for purposes of this Step 1,
Separately for each Improvement Area for which Supplemental
Bonds have been sold, divide the applicable Supplemental Bonds
Special Tax Requirement for the then current Fiscal Year by the
respective Acreages as calculated in Step 1 to determine a separate
per-Acre Special Tax for, each Improvement Area on behalf of
which Supplemental Bonds have been issued,
For each Assessor's Parcel within Improvement Areas for which
Supplemental Bonds have been sold, multiply the per-Acre Special
Tax determined in Step 2 by the Acreage of each Parcel to
determine the Special Tax to be levied on each Parcel to pay the
Supplemental Bonds Special Tax Requirement. The Special Tax
determined pursuant to this Step 3 shall be levied in addition to the
Special Tax determined for these Parcels in Section D.l above,
Notwithstanding any other provision of this Rate and Method of Apportionment of Special Tax, no
Special Tax shall be levied on Parcels that have been conveyed to a Public Agency, except as
otherwise provided in the Act.
F. PREPAYMENT OF SPECIAL TAX
The following definitions apply to this Section F:
"Remaining Facilities Costs" means the Public Facilities Requirements minus public
facility costs funded by Outstanding Bonds, developer equity and/or any other source of
funding, Facility costs funded by Supplemental Bonds within Improvement Areas #1, #2,
City olGi/roy CFD No, 2000-/
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December 4, 2000
City of Gilroy CFD No. 2000-1
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December 4, 2000
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#3, #6, #7 or #8 shall be subtracted only from the Public Facilities Requirements for that
Improvement Area for purposes of determining Remaining Facilities Costs,
"Outstanding Bonds" means all Previously Issued Bonds which remain outstanding, with
the following exception: if a Special Tax has been levied against, or already paid by, an
Assessor's Parcel making a prepayment, and a portion of the Special Tax will be used to
pay a portion of the next principal payment on the Bonds that remain outstanding (as
determined by the Administrator), that next principal payment shall be subtracted from the
total Bond principal that remains outstanding, and the difference shall be used as the
amount of "Outstanding Bonds" for purposes of this prepayment formula.
"Previously Issued Bonds" means, for Improvement Areas #4 and #5, all Highway 152
Bonds that have been issued prior to the date of prepayment. For Improvement Areas #1,
#2, #3, #6, #7 and #8, Previously Issued Bonds means all Highway 152 Bonds and all
Supplemental Bonds that have been issued on behalf of the Improvement Area prior to the
date of prepayment.
"Public Facilities Requirements" means, for Improvement Areas #4 and #5, either
$5,500,000 in 2002 dollars, which shall increase by thr.ee percent (3%) on January 1,
2003, and on each January 1 thereafter, or such lower number as shall be determined by
the City as sufficient to fund improvements to Highway 152 that are authorized to be
funded by CFD No. 2000-1. For Improvement Area #1, "Public Facilities Requirement"
means either $16,000,000 in 2002 dollars, which shall increase by three percent (3%) on
January 1, 2003, and on each January 1 thereafter, or such lower number as shall be
determined by the City as sufficient to fund Highway 152 improvements and additional
improvements within Improvement Area #1 that are authorized to be funded by CFDNo,
2000-1. For Improvement Area #2, "Public Facilities Requirement" means either
$10,000,000 in 2002 dollars, which shall increase by three percent (3%) on January 1,
2003, and on each January 1 thereafter, or such lower number as shall be determined by
the City as sufficient to fund Highway 152 improvements and additional improvements
within Improvement Area #2 that are authorized to be funded by CFD No, 2000-1.
For Improvement Area #3, "Public Facilities Requirement" means either $11,500,000 in
2002 dollars, which shall increase by three percent (3%) on January 1, 2003, and on each
January 1 thereafter, or such lower number as shall be determined by the City as sufficient
to fund Highway 152 improvements and additional improvements within Improvement
Area #3 that are authorized to be funded by CFD No. 2000-1, For Improvement Area #6,
"Public Facilities Requirement" means either $7,325,000 in 2002 dollars, which shall
increase by three percent (3%) on January 1, 2003, and on each January 1 thereafter, or
such lower number as shall be determined by the City as sufficient to fund Highway 152
improvements and additional improvements within Improvement Area #6 that are
authorized to be funded by CFD No, 2000-1.
City of Gilroy CFD No, 2000-1
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For Improvement Area #7, "Public Facilities Requirement" means either $7,500,000 in
2002 dollars, which shall increase by three percent (3%) on January 1, 2003, and on each
January 1 thereafter, or such lower number as shall be determined by the City as sufficient
to fund Highway 152 improvements and additional improvements within Improvement
Area #7 that are authorized to be funded by CFD No. 2000-1, For Improvement Area #8,
"Public Facilities Requirement" means either $7,000,000 in 2002 dollars, which shall
increase by three percent (3%) on January 1,2003, and on each January 1 thereafter, or
such lower number as shall be determined by the City as sufficient to fund Highway 152
improvements and additional improvements within Improvement Area #8 that are
authorized to be funded by CFD No, 2000-1.
The Special Tax obligation applicable to an Assessor's Parcel in CFD No, 2000-1 may be prepaid
and the obligation of the Assessor's Parcel to pay the Special Tax permanently satisfied as
described herein, provided that a prepayment may be made only if there are no delinquent Special
Taxes with respect to such Assessor's Parcel at the time of prepayment. An owner of an
Assessor's Parcel intending to prepay the Special Tax obligation shall provide the City with
written notice of intent to prepay, Within 30 days of receipt of such written notice, the City or its
designee shall notify such owner of the prepayment amount for such Assessor's Parcel.
Prepayment must be made not less than 75 days prior to any redemption date for Bonds to be
redeemed with the proceeds of such prepaid Special Taxes,
The Prepayment Amount shall be calculated as follows: (capitalized terms as defined below):
Bond Redemption Amount
plus Remaining Facilities Amount
plus Redemption Premium
plus Defeasance
plus Administrative Fees and Expenses
ks.s Reserve Fund Credit
equals Prepayment Amount
As of the proposed date of prepayment, the Prepayment Amount shall be determined by
application of the following steps:
Step 1.
Compute the total Maximum Special Tax that could be collected from the
Assessor's Parcel prepaying the Special Tax in the Fiscal Year in which
prepayment would be received by the City.
Step 2.
For Improvement Areas #4 and #5, divide the Maximum Special Tax
computed pursuant to Step 1 for such Assessor's Parcel by the Maximum
Special Taxes that can be collected within the entire CFD in the Fiscal Year
in which prepayment would be received by the City using only that portion
of the Maximum Special Tax within all other Improvement Areas that is
committed to the Highway 152 Bonds (as determined by the Administrator),
Step 3.
Step 4.
Step 5.
Step 6.
Step 7.
Step 8.
Step 9.
Step 10.
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For Improvement Areas #1, #2, #3, #6, #7 and #8, the denominator for
purposes of this Step 2 shall be the sum of the following: (i) the Maximum
Special Tax revenues that can be collected within Improvement Areas #4
and #5 in the Fiscal Year in which prepayment would be received, (ii) the
Maximum Special Tax that could be collected in all other Improvement
Areas by applying the portion of the Maximum Special Tax that is reserved
for the Highway 152 Bonds, and (iii) the Maximum Special Tax revenues
that can be collected withiiJ. the Improvement Area within which the Parcel
prepaying the Special Tax is located in the Fiscal Year in which the
prepayment would be received by the City by applying the full Maximum
Special Tax to all Parcels within the Improvement Area,
Multiply the quotient computed pursuant to Step 2 by the Outstanding
Bonds to compute the amount of Outstanding Bonds to be retired and
prepaid (the "Bond Redemption Amount').
Compute the current Remaining Facilities Costs (if any),
Multiply the quotient computed pursuant to Step 2 by the amount
determined pursuant to Step 4 to compute the amount of Remaining
Facilities Costs to be prepaid (the "Remaining Facilities Amount'),
Multiply the Bond Redemption Amount computed pursuant to Step 3 by the
applicable redemption premium, if any, on the Outstanding Bonds to be
redeemed (the "Redemption Premium").
Compute the amount needed to pay interest on the Bond Redemption
Amount from the last date on which interest was paid on the Outstanding
Bonds until the earliest redemption date for the Outstanding Bonds.
Compute the minimum amount the Administrator reasonably expects to
derive from the reinvestment of the Bond Redemption Amount plus the
Redemption Premium until the redemption date for the Outstanding Bonds
that the Administrator expects to be redeemed with the prepayment.
Take the amount computed pursuant to Step 7 and subtract the amount
computed pursuant to Step 8 (the "Defeasance").
The administrative fees and expenses of CFD No. 2000-1 are as calculated
by the Administrator and include the costs of computation of the prepayment,
the costs of redeeming Bonds, and the costs of recording any notices to
evidence the prepayment and the redemption (the "Administrative Fees and
Expenses "),
City of Gilroy CFD No. 2000-/
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December 4, 2000
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Step 11.
If and to the extent so provided in the Indenture pursuant to which the
Outstanding Bonds to be redeemed were issued, a reserve fund credit shall be
calculated as a reduction in the applicable reserve fund for the Outstanding
Bonds to be redeemed pursuant to the prepayment (the "Reserve Fund
Credit "),
Step 12.
The Special Tax prepayment is equal to the sum of the amounts computed
pursuant to Steps 3, 5, 6,'9, and 10, less the amount computed pursuant to
Step II (the "Prepayment Amount "),
A partial prepayment may be made in an amount equal to any percentage of full prepayment
desired by the party making a partial prepayment. The Maximum Special Tax that can be levied
on a Parcel after a partial prepayment is made is equal to the Maximum Special Tax that could
have been levied prior to 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 Administrator.
G, ANNEXATION CATCH-UP TAX
If additional property proposes annexation into CFD No. 2000- I in any future Fiscal Year, such
property shall be subject to an "Annexation Catch-up Tax" that shall become due and payable after
a successful election has taken place pursuant to Section 53339,7 of the Act, Notwithstanding the
foregoing, the Annexation Catch-up Tax that is levied against the property that was, at the time of
formation of CFD No. 2000-1: (i) owned by the Obata family, (ii) within unincorporated Santa Clara
County, and (iii) identified by Assessor's Parcel numbers 841-17-073 and 841-17-074 shall include
only the "Missed Special Tax Payments" calculated pursuant to (I) below and not the "Interest
Carry" calculated pursuant to (2) below. Proceeds from collection of an Annexation Catch-up Tax
shall be used to call Highway 152 Bonds and reduce the Special Tax being levied to pay debt service
on Highway 152 Bonds, The Annexation Catch-up Tax shall be equal to the sum of the following:
(1) Missed Special Tax Payments - the total Special Tax amount that would
have been levied on the property proposing annexation had the property been
included in CFD No, 2000-1 at the time the CFD was formed, as determined
by the Administrator. Only Special Tax payments that would have been
made through the first ten years after the CFD was formed or up to the time
of annexation, whichever is less, shall be included, Such amount shall be
determined by evaluating the amount that would have been levied in each
prior Fiscal Year on property in Improvement Area #5,
(2) Interest Carry - the annual amounts calculated in (I) above shall be
increased each year at a 10% interest rate from the first Fiscal Year in which
Special Taxes were levied on behalf of CFD No, 2000-1 through and
including the Fiscal Year in which the Annexation Catch-up Tax is being
calculated (unless the annexing Parcel is to be included on the tax roll for the
City ofGi/roy CFD No. 2000-1
12
December 4, 2000
City ofGiiroy CFD No. 2000-1
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December 4, 2000
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Fiscal Year in which the Annexation Catch-up Tax is being calculated) or up
to a maximum often years, whichever is less,
In addition to the Annexation Catch-up Tax, any party requesting annexation into CFD No, 2000- I
shall pay all costs associated with the annexation process, including the cost of City staff time,
consultant fees, recording costs, and any other costs deemed appropriate by the City.
H. INTERPRETATION OF SPECIAL TAX FORMULA
The City reserves the right to make minor administrative and technical changes to this document that
do not materially affect the rate and method of apportioning Special Taxes, In addition, the
interpretation and application of any section of this document shall be left to the City's discretion.
Interpretations may be made by the City by ordinance or resolution for purposes of clarifying any
vagueness or ambiguity in this Rate and Method of Apportionment,
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I, RHONDA PELLIN, City Clerk of the City of Gilroy, do hereby certifY that the attached
Resolution No. 2000-87 is an original resolution, duly adopted by the Council of the City of
Gilroy at a regular meeting of said Council held on the 18th day of December, 2000, at which
meeting a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
the City of Gilroy this 5th day ofJanuary, 2001.
(Seal)