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HomeMy WebLinkAboutResolution 2006-40 RESOLUTION NO. 2006-40 RESOLUTION OF CONSIDERATION TO AMEND THE RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX City of Gilroy Community Facilities District No. 2000-1 (Highway 152) WHEREAS, the City Council of the City of Gilroy (the "City") has conducted proceedings under and pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, Chapter 2.5 of Part 1 of Division 2 of Title 5 (commencing with Section 53311) of the California Government Code (the "Act"), to form City of Gilroy Community Facilities District No. 2000-1 (Highway 152) (the "CFD"), to authorize the levy of special taxes upon the land within the CFD, and to issue bonds secured by the special taxes, the proceeds of which are to be used to finance certain public improvements, all as described in those proceedings; and WHEREAS, the City previously issued the City of Gilroy Community Facilities District No. 2000-1 (Highway 152) Special Tax Bonds, Series 2002 (the" 2002 Bonds") in the initial principal amount of $7,185,000; and WHEREAS, the Rate and Method of Apportionment of Special Tax for the CFD (the "Rate and Method"), attached as Exhibit B to the City Council's Resolution No. 2000-87 adopted by the City Council on December 18, 2000, authorizes the levy of a "Special Tax" in the CFD in any fiscal year to pay the "Highway 152 Special Tax Requirement" and lor the "Supplemental Bonds Special Tax Requirement"; and WHEREAS, the Highway 152 Special Tax Requirement generally is defined in the Rate and Method as the amount necessary to pay principal and interest on "Highway 152 Bonds", to create or replenish reserve funds for Highway 152 Bonds, to cure delinquencies in the payment of principal or interest on Highway 152 Bonds, and to pay administrative expenses not associated with "Supplemental Bonds"; and WHEREAS, Highway 152 Bonds are defined in the Rate and Method as bonds or other debt issued by the CFD to pay for the construction or acquisition of improvements to Highway 152; and WHEREAS, the Supplemental Bonds Special Tax Requirement generally is defined in the Rate and Method as the amount necessary to pay principal and interest on Supplemental Bonds, to create or replenish reserve funds for Supplemental Bonds, to cure delinquencies in the payment of principal or interest on Supplemental Bonds, and to pay administrative expenses not associated with Highway 152 Bonds; and WHEREAS, Supplemental Bonds are defined in the Rate and Method as any bonds, the debt service on which are secured by the Supplemental Special Tax in an Improvement Area (as defined in the Rate and Method) within the CFD that have been issued to pay for public facilities other than improvements to Highway 152; and WHEREAS, the Rate and Method dictates that Supplemental Bonds sold to fund improvements within an Improvement Area shall be secured solely by special taxes collected within that Improvement Area and that no special tax shall be levied in any Improvement Area to pay debt service on Supplemental Bonds sold to fund improvements in another Improvement Area; and RESOLUTION NO. 2006-40 -1- WHEREAS, pursuant to the Rate and Method, the Maximum Special Tax in Improvement Area NO.1 is $2,046 per Acre (subject to annual increase) until such time as Supplemental Bonds are issued for public improvements within Improvement Area # 1 of the CFD ("Improvement Area #1"), at which time the Maximum Special Tax increases to $15,262 per Acre (subject to annual increase); and WHEREAS, the Series 2002 Bonds are Highway 152 Bonds as defined in the Rate and Method and are secured by special taxes levied throughout the CFD, i.e., in Improvement Area #s 1 through 8, up to the Maximum Special Tax specified for Highway 152 Bonds in each Improvement Area; and WHEREAS, the City has been asked by the owner of the property in Improvement Area # 1 (i) to issue bonds to finance acquisition and construction of certain public facilities other than improvements to Highway 152 and (ii) to amend the Rate and Method as it applies to the Special Tax levied in Improvement Area #1 to pay the Supplemental Bond Special Tax Requirement; and WHEREAS, the City Council has received a petition from the owner of the property in Improvement Area #1 with respect to the proposed amendment of the Rate and Method; and WHEREAS, Section 53331 (a) of the Act authorizes the City Council, if it determines that the public convenience and necessity require a change in the Rate and Method, to adopt a resolution of consideration to alter the Rate and Method; and WHEREAS, the City Council has determined that the proposed amendment to the Rate and Method would not adversely impact owners of the Series 2002 Bonds because the proposed amendment will not impact the Special Tax levied to pay the Highway 152 Special Tax Requirement; and WHEREAS, the proposed change to the Rate and Method must occur following a public hearing and must be approved by two-thirds of the votes cast on the proposition at an election of the qualified electors in Improvement Area #1. NOW THEREFORE, it is hereby ordered as follows: 1. Name of Affected Area. This Resolution relates to the Rate and Method for the CFD, but the proposed amendment relates only to the Special Tax levied in Improvement Area #1 to pay the Supplemental Bonds Special Tax Requirement. 2. Approval of Amended Boundarv Map. The boundaries of the CFD are as set forth in the map of the CFD previously recorded in the Santa Clara County Recorder's Office on December 1, 2000 in Book 34 at Page 55 of Maps and Assessment and Community Facilities Districts. The City Clerk is hereby directed to record, or cause to be recorded, an amended map of the boundaries of the CFD, which map has been prepared to reflect the boundaries of the various improvement areas in the CFD, in the form on file with the City Clerk, in the office of the Santa Clara County Recorder within 15 days of the date of adoption of this Resolution. 3. Proposed Amendment. The City Council hereby finds that the public convenience and necessity require a change to the Rate and Method. The proposed amendment (the "Amended Rate and Method") shall only amend the Rate and Method as it applies to the Special Tax levied in Improvement Area #1 to pay the Supplemental Bonds Special Tax RESOLUTION NO. 2006-40 -2- Requirement. The Amended Rate and Method is attached hereto as Exhibit A, and incorporated herein by reference. 4. Public Hearinq. The City Council hereby sets July 17, 2006 at 7:00 p.m. (which date is at least 30 days and not more than 60 days after the date of this Resolution) or as soon thereafter as possible in the City Council Chambers located at 7351 Rosanna Street, Gilroy, California as the date and time for the public hearing on the question of amending the Rate and Method. The City Clerk is hereby directed to cause notice of the public hearing to be given by publication one time in a newspaper published in the area of the CFD. The publication shall be completed at least 7 days before the date of the public hearing specified above. The notice shall comply with the provisions of Section 53335 of the Act. 5. Effective Date. This Resolution shall take effect upon its adoption. PASSED AND ADOPTED this 12th day of June, 2006 by the following vote: AYES: COUNCILMEMBERS: ARELLANO, BRACCO, CORREA, GARTMAN, V ALIQUETTE, and PINHEIRO NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: VELASCO APPROVED: RESOLUTION NO. 2006-40 -3- EXHIBIT A AMENDED AND RESTATED RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX CITY OF GILROY Community Facilities District No. 2000-1 (Highway 152) AMENDMENT NO.1 TO RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX This Amendment NO.1 to Rate and Method of Apportionment of Special Tax (this "Amendment No.1") amends the Rate and Method of Apportionment of Special Tax (the "Existing Rate and Method," and together with Amendment No.1, the "Rate and Method") for City of Gilroy Community Facilities District No. 2000-1 (Highway 152) (the "CFD") as set forth below. Except as expressly set forth in this Amendment No.1, all provisions of the Existing Rate and Method shall continue to govern the matters described therein. Capitalized terms that are used but not defined in this Amendment NO.1 have the meaning given them in the Existing Rate and Method. Section 0.2 of the Existing Rate and Method is hereby amended and restated as follows: 2. Supplemental Bonds Special Tax Requirement a. General. 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 shall be levied in any Improvement Area to pay debt service on Supplemental Bonds sold to fund improvements in another Improvement Area. b. Improvement Area #1 Commencing with Fiscal Year 2006-007 and for each following Fiscal Year, the Administrator shall determine the Supplemental Bonds Special Tax Requirement for Improvement Area #1 to be collected in that Fiscal Year. Once the Administrator has determined the Supplemental Bonds Special Tax Requirement for Improvement Area #1, a Special Tax shall then be levied, in addition to the Special Tax levied for Highway 152 improvements pursuant to Section D.1 above, according to the following steps: Step 1. Using the Acreage of Taxable Property reflected on Assessor's Parcel Maps, add together the following: (i) Acreage of Lots 1, 2, 3,4,5,6, 7, 8,9, 10, 11, 12 and 13 within Improvement Area #1, and (ii) one-half of the Acreage of Lot A within Improvement Area #1 . Step 2. Divide the Supplemental Bonds Special Tax Requirement for Improvement Area #1 for the Fiscal Year by the Acreage calculated in Step 1 to determine a per-Acre Special Tax. Step 3. For Lots 1, 2, 3, 4, 5, 6, 7, 8,9,10,11,12 and 13 in Improvement Area # 1, 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 for Improvement Area #1. For Lot A, multiply the Acreage of the Parcel by one-half of the per-Acre Special Tax determined in Step 2 to determine the Special Tax to be levied on Lot A. c. Improvement Areas #2-8 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 #2, #3, #6, #7 and/or #8 if Supplemental Bonds have been issued for some or all of the Improvement Areas. Once the Administrator has determined the separate Supplemental Bonds Special Tax Requirement for Improvement Areas #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 0.1 above, according to the following steps: Step 1. Step 2. Step 3. 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 0.1 above. I, RHONDA PELLIN, City Clerk of the City of Gilroy, do hereby certify that the attached Resolution No. 2006-40 is an original resolution, or true and correct copy of a city resolution, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the 12th day of June, 2006, 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 of July, 2006. (Seal)