HomeMy WebLinkAbout2026-026 CFD 2025-1 (Canyon Hills Heights) Consideration of Change Proceedings
RESOLUTION NO. 2026-26
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY
FACILITIES DISTRICT NO. 2025-1 OF THE CITY OF LAKE ELSINORE
(CANYON HILLS HEIGHTS), DECLARING ITS INTENTION TO CONSIDER AN
AMENDMENT TO THE RATE AND METHOD OF APPORTIONMENT OF
SPECIAL TAX
Whereas, on June 24, 2025, the City Council of the City of Lake Elsinore (the “City
Council”) adopted Resolution No. 2025-034 stating its intention to form Community Facilities
District No. 2025-1 of the City of Lake Elsinore (Canyon Hills Heights) (“Community Facilities
District No. 2025-1” or the “District”) pursuant to the Mello-Roos Community Facilities Act of
1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code
of the State of California (the “Act”); and
Whereas, on June 24, 2025, the City Council also adopted Resolution No. 2025-035
stating its intention to incur bonded indebtedness within the District in the amount not to exceed
$14,000,000 to finance the types of facilities set forth in Resolution No. 2025-034 (the
“Facilities”); and the incidental expenses to be incurred in financing the Facilities and forming
and administering the District (the “Incidental Expenses”); and
Whereas, a notice calling a public hearing on August 12, 2025, was published as
required by law relative to the intention of the City Council to establish Community Facilities
District No. 2025-1 and to incur bonded indebtedness within Community Facilities District
No. 2025-1; and
Whereas, on August 12, 2025, the City Council conducted a noticed public hearing to
determine whether it should proceed with the establishment of Community Facilities District
No. 2025-1, issue bonds for the benefit of Community Facilities District No. 2025-1 to pay for the
Facilities and Incidental Expenses, authorize the levy of special taxes to finance the Facilities
and to authorize the rate and method of apportionment of the special taxes in the form attached
as Attachment A to the Resolution of Formation (the “Rate and Method”) to be levied within
Community Facilities District No. 2025-1 for the purposes described in the Resolution of
Formation; and
Whereas, at the August 12, 2025, public hearing all persons desiring to be heard on all
matters pertaining to the establishment of Community Facilities District No. 2025-1, the levy of
the special taxes in accordance with the Rate and Method and the issuance of bonds within
Community Facilities District No. 2025-1 to pay for the cost of the proposed Facilities and
Incidental Expenses were heard and a full and fair hearing was held; and
Whereas, after the public hearing, on August 12, 2025, the City Council adopted
Resolution Nos. 2025-60 (the “Resolution of Formation”) and 2025-61 (the “Resolution to Incur
Bonded Indebtedness”) which formed the District and called a special election on August 12,
2025, within the District on propositions relating to the levying of the special taxes, the incurring
of bonded indebtedness and the establishment of an appropriations limit for the District, which
were approved by more than two-thirds vote by the qualified electors on August 12, 2025; and
Whereas, pursuant to Resolution No. 2025-62, adopted on August 12, 2025, the City
Council, acting as the legislative body of Community Facilities District No. 2025-1, declared the
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results of the special election and directed the recording of a notice of special tax lien within
Community Facilities District No. 2025-1; and
Whereas, the District has received a petition signed by Tri Pointe Homes IE-SD, Inc., a
California Corporation (the “Owner”), which owns all of the land within Community Facilities
District No. 2025-1, the boundaries of which are shown on the map designated “Boundary Map
of Community Facilities District No. 2025-1 (Canyon Hills Heights) City of Lake Elsinore, County
of Riverside, State of California”, which map is on file in the office of the City Clerk and was
recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the County
Book of Maps of Assessment and Community Facilities Districts in the Assessor-County Clerk-
Recorder’s office of the County of Riverside in Book No. 96 Page No. 66 on July 2, 2025 as
Instrument No. 2025-0202948, which petition meets the requirements of Section 53332 of the
Act, requesting that the District initiate proceedings to approve the new rate and method of
apportionment for Community Facilities District No. 2025-1, attached hereto as Attachment “A”
(the “First Amended and Restated Rate and Method”); and
NOW, THEREFORE, THE CITY COUNCIL, ACTING AS THE LEGISLATIVE BODY OF
COMMUNITY FACILITIES DISTRICT NO. 2025-1 OF THE CITY OF LAKE ELSINORE
(CANYON HILLS HEIGHTS), DOES HEREBY RESOLVE, ORDER AND DETERMINE AS
FOLLOWS:
Section 1. Each of the above recitals is true and correct and is adopted by the
legislative body of the District.
Section 2. The City Council, acting as the legislative body of the District, declares its
intention to conduct proceedings pursuant to the Act to consider amending and restating the
Rate and Method with the First Amended and Restated Rate and Method.
Section 3. The Facilities proposed to be provided within the District are public facilities
as defined in the Act. The Facilities and Incidental Expenses authorized to be financed by the
District are described in the Resolution of Formation. The City and the Elsinore Valley Municipal
Water District, with respect to certain water and sewer facilities, are authorized by law to
construct, acquire, own and operate the Facilities for the benefit of the District.
Section 4. A public hearing (the “Hearing”) on the levy of special taxes in the District in
accordance with the First Amended and Restated Rate and Method, shall be held at 7:00 p.m.,
or as soon thereafter as practicable, on April 14, 2026, at the City Cultural Center, 183 North
Main Street, Lake Elsinore, California. Should the City Council determine to submit the
proposed First Amended and Restated Rate and Method to the qualified electors of the District,
a special election will be held to authorize the First Amended and Restated Rate and Method in
accordance with the procedures contained in Government Code Section 53326. If such election
is held, the proposed voting procedure at the election will be a landowner vote with each
landowner who is the owner of record of land within the District at the close of the Hearing, or
the authorized representative thereof, having one vote for each acre or portion thereof owned
within the District. Ballots for the special election may be distributed by mail or by personal
service.
Section 4. At the time and place set forth above for the Hearing, any interested person,
including all persons owning lands or registered to vote within the District, may appear and be
heard.
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Section 5. The City Clerk is hereby directed to publish a notice (the “Notice”) of the
Hearing pursuant to Section 6061 of the Government Code in a newspaper of general
circulation published in the area within Community Facilities District No. 2025-1. The City Clerk
is further directed to mail a copy of the Notice to each of the landowners within the boundaries
of Community Facilities District No. 2025-1 at least 15 days prior to the Hearing. The Notice
shall contain the text or a summary of this Resolution, the time and place of the Hearing, a
statement that the testimony of all interested persons or taxpayers will be heard, a description of
the protest rights of the registered voters and landowners in the District and a description of the
proposed voting procedure for the election required by the Act. Such publication shall be
completed at least seven (7) days prior to the date of the Hearing.
Section 6. This Resolution shall be effective upon its adoption.
Section 7. The City Clerk shall certify to the adoption of this Resolution and enter it into the book of original Resolutions.
Passed and Adopted at a regular meeting of the City Council of the City of Lake
Elsinore, California, this 10th day of March 2026.
Robert E. Magee
Mayor
Attest:
Candice Alvarez, MMC
City Clerk
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF LAKE ELSINORE )
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify
that Resolution No. 2026-26 as adopted by the City Council of the City of Lake Elsinore,
California, at the Regular meeting of March 10, 2026 and that the same was adopted by the
following vote:
AYES: Council Members Manos and Carroll; Mayor Pro Tem Sheridan; and Mayor Magee
NOES: None
ABSENT: Council Member Tisdale
ABSTAIN: None
Candice Alvarez, MMC
City Clerk
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ATTACHMENT “A”
PROPOSED FIRST AMENDED AND RESTATED
RATE AND METHOD OF APPORTIONMENT OF
COMMUNITY FACILITIES DISTRICT NO. 2025-1 OF THE
CITY OF LAKE ELSINORE (CANYON HILLS HEIGHTS)
A Special Tax (all capitalized terms are defined in Section A, “Definitions”, below) shall be
applicable to each Assessor’s Parcel of Taxable Property located within the boundaries of the
City of Lake Elsinore Community Facilities District No. 2025-1 (Canyon Hills Heights) ("CFD No.
2025-1”). The amount of Special Tax to be levied in each Fiscal Year on an Assessor’s Parcel
shall be determined by the City Council of the City of Lake Elsinore, acting in its capacity as the
legislative body of CFD No. 2025-1, by applying the appropriate Special Tax for Developed
Property, Approved Property, Undeveloped Property, and Provisional Undeveloped Property
that is not Exempt Property as set forth below. All of the real property, unless exempted by law
or by the provisions hereof in Section F, shall be taxed for the purposes, to the extent and in the
manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Accessory Dwelling Unit” means a residential unit of limited size including a smaller second
unit that shares an Assessor’s Parcel as a Single Family Residential Property with a stand-
alone Residential Unit.
"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, condominium plan, or other recorded County parcel
map or instrument. The square footage of an Assessor’s Parcel is equal to the Acreage
multiplied by 43,560.
"Act" means the Mello-Roos Communities Facilities Act of 1982, as amended, being Chapter
2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code
of the State of California.
"Administrative Expenses" means the following actual or reasonably estimated costs directly
related to the administration of CFD No. 2025-1: the costs of computing the Special Taxes and
preparing the Special Tax collection schedules (whether by the City or designee thereof or
both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of
remitting Special Taxes to the Trustee; the costs of the Trustee (including legal counsel) in the
discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2025-1
or any designee thereof of complying with arbitrage rebate requirements; the costs to the City,
CFD No. 2025-1 or any designee thereof of complying with disclosure requirements of the City,
CFD No. 2025-1 or obligated persons associated with applicable federal and state securities
laws and the Act; the costs associated with preparing Special Tax disclosure statements and
responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2025-
1 or any designee thereof related to an appeal of the Special Tax; the costs associated with the
release of funds from an escrow account; and the City’s annual administration fees and third
party expenses. Administration Expenses shall also include amounts estimated by the CFD
Administrator or advanced by the City or CFD No. 2025-1 for any other administrative purposes
of CFD No. 2025-1, including attorney’s fees and other costs related to commencing and
pursuing to completion any foreclosure of delinquent Special Taxes.
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"Approved Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in
a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the
Special Tax is being levied, (ii) and has an assigned Assessor’s Parcel Number from the County
shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) that
have not been issued a building permit on or before May 1st preceding the Fiscal Year in which
the Special Tax is being levied.
"Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map
with an assigned Assessor’s Parcel Number.
"Assessor’s Parcel Map" means an official map of the Assessor of the County designating
parcels by Assessor’s Parcel Number.
"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the
County for purposes of identification.
"Assigned Special Tax" means the Special Tax of that name described in Section D below.
"Backup Special Tax" means the Special Tax of that name described in Section D below.
"Boundary Map" means a recorded map of the CFD which indicates the boundaries of the
CFD.
"Bonds" means any obligation to repay a sum of money, including obligations in the form of
bonds, notes, certificates of participation, long-term leases, loans from government agencies, or
loans from banks, other financial institutions, private businesses, or individuals, or long-term
contracts, or any refunding thereof, to which Special Tax of CFD No. 2025-1 have been
pledged.
"Building Permit" means the first legal document issued by a local agency giving official
permission for new construction. For purposes of this definition, “Building Permit” may or may
not include any subsequent building permit document(s) authorizing new construction on an
Assessor’s Parcel that are issued or changed by the City after the first original issuance, as
determined by the CFD Administrator as necessary to fairly allocate Special Tax to the
Assessor’s Parcel, provided that following such determination the Maximum Special Tax that
may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times maximum
annual debt service on all outstanding Bonds plus the estimated annual Administrative
Expenses.
"Building Square Footage" or "BSF" means the square footage of assessable internal living
space, exclusive of garages or other structures not used as living space, as determined by
reference to the Building Permit for such Assessor’s Parcel.
"Calendar Year" means the period commencing January 1 of any year and ending the
following December 31.
"CFD” or “CFD No. 2025-1” means Community Facilities District No. 2025-1 (Canyon Hills
Heights) established by the City under the Act.
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“CFD Administrator" means an official of the City, or designee thereof, responsible for
determining the Special Tax Requirement, and providing for the levy and collection of the
Special Taxes.
“City” means the City of Lake Elsinore.
"City Council" means the City Council of the City of Lake Elsinore, acting as the Legislative
Body of CFD No. 2025-1.
“Condominium Plan" means a condominium plan as set forth in the California Civil Code,
Section 6624.
"County" means the County of Riverside.
"Developed Property" means all Assessor’s Parcels that: (i) are included in a Final Map that
was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is
being levied, and (ii) has an Assessor’s Parcel Number from the County shown on an
Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) a Building Permit
for new construction was issued on or before May 1st preceding the Fiscal Year in which the
Special Tax is being levied.
"Exempt Property" means all Assessor’s Parcels designated as being exempt from Special
Taxes as provided for in Section F.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot
line adjustment, pursuant to the Subdivision Map Act (California Government Code Section
66410 et seq.) or recordation of a Condominium Plan pursuant to California Civil Code Section
6624 that creates individual lots for which Building Permits may be issued without further
subdivision.
"Fiscal Year" means the period commencing on July 1st of any year and ending the following
June 30th.
“Indenture” means the indenture, fiscal agent agreement, resolution or other instrument
pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to
time, and any instrument replacing or supplementing the same.
“Land Use Category” means any of the categories listed in Table 1 and Table 2 of Section D.
"Maximum Special Tax" means for each Assessor’s Parcel, the maximum Special Tax,
determined in accordance with Section D below, that can be levied by CFD No. 2025-1 in any
Fiscal Year on such Assessor’s Parcel.
“Multifamily Property” means all Assessor’s Parcels of Developed Property for which a
Building Permit has been issued for the purpose of constructing a building or buildings
comprised of attached Residential Units available for rental by the general public, not for sale to
an end user, and under common management, as determined by the CFD Administrator.
"Non-Residential Property" or “NR” means all Assessor's Parcels for which a building
permit(s) was issued or will be issued for a non-residential use. The CFD Administrator shall
make the determination if an Assessor’s Parcel is Non-Residential Property.
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"Partial Prepayment Amount" means the amount required to prepay a portion of the Special
Tax obligation for an Assessor’s Parcel, as described in Section G.2.
"Prepayment Amount" means the amount required to prepay the Special Tax obligation in full
for an Assessor’s Parcel, as described in Section G.1.
“Proportionately” means for Taxable Property that is (i) Developed Property, that the ratio of
the actual Special Tax levy to the Assigned Special Tax is the same for all Assessor’s Parcels of
Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the
Maximum Special Tax is the same for all Assessor’s Parcels of Approved Property, and (iii)
Undeveloped Property, or Provisional Undeveloped Property, that the ratio of the actual Special
Tax levy per Acre to the Maximum Special Tax per Acre is the same for all Assessor’s Parcels
of Undeveloped Property, or Provisional Undeveloped Property, as applicable.
"Provisional Undeveloped Property" means all Assessor’s Parcels of Taxable Property that
would otherwise be classified as Exempt Property pursuant to the provisions of Section F, but
cannot be classified as Exempt Property because to do so would be reduce the Acreage of all
Taxable Property below the required minimum Acreage set forth in Sections F.
"Residential Property" means all Assessor’s Parcels of Developed Property for which a
building permit has been issued for purposes of constructing one or more Residential Units.
“Residential Unit” or "RU" means a residential unit that is used or intended to be used as a
domicile by one or more persons, as determined by the CFD Administrator. An Accessory
Dwelling Unit that shares an Assessor’s Parcel with a Single Family Residential Property shall
not be considered a Residential Unit for purposes of this RMA.
“Single Family Residential Property” means all Assessor’s Parcels of Residential Property
other than Multifamily Property.
"Special Tax" or “Special Taxes” means any of the special taxes authorized to be levied
within CFD No. 2025-1 pursuant to the Act to fund the Special Tax Requirement.
"Special Tax Requirement " means the amount required in any Fiscal Year to pay: (i) the debt
service or the periodic costs on all outstanding Bonds due in the Calendar Year that
commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the
release of funds from an escrow account, (iv) any amount required to replenish any reserve
funds established in association with the Bonds, (v) an amount equal to any anticipated shortfall
due to Special Tax delinquencies, and (vi) for the collection or accumulation of funds for the
acquisition or construction of facilities authorized by CFD No. 2025-1 or the payment of debt
services on Bonds anticipated to be issued, provided that the inclusion of such amount does not
cause an increase in the levy of Special Tax on Approved Property or Undeveloped Property as
set forth in Steps Two or Three of Section E., less (vii) any amounts available to pay debt
service or other periodic costs on the Bonds pursuant to the Indenture.
“Tax Zone(s)” means the geographical area(s) within CFD No. 2025-1 identified as Tax Zone 1
or Tax Zone 2 as shown on the Boundary Map.
“Tax Zone 1” means all property located within CFD No. 2025-1 and identified on the Boundary
Map as Tax Zone 1.
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“Tax Zone 2” means all property located within CFD No. 2025-1 and identified on the Boundary
Map as Tax Zone 2.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2025-1, which are not
Exempt Property.
“Taxable Unit” means either a Residential Unit or an Acre.
"Tract(s)" means an area of land within a subdivision identified by a particular tract number on
a Final Map approved for the subdivision.
“Trustee” means the trustee, fiscal agent, or paying agent under the Indenture.
"Undeveloped Property" means all Assessor’s Parcels of Taxable Property which are not
Developed Property, Approved Property, Provisional Undeveloped Property.
B. SPECIAL TAX
Commencing Fiscal Year 2025-2026 and for each subsequent Fiscal Year, the City Council
shall levy Special Taxes on all Taxable Property, up to the applicable Maximum Special Tax, to
fund the Special Tax Requirement.
C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX
Each Fiscal Year, beginning with Fiscal Year 2025-2026, each Assessor’s Parcel within CFD
No. 2025-1 shall be classified as Taxable Property or Exempt Property. In addition, each
Assessor’s Parcel of Taxable Property shall be further classified as Developed Property,
Approved Property, Undeveloped Property or Provisional Undeveloped Property shall be further
classified as being within Tax Zone 1 or Tax Zone 2.
Assessor’s Parcels of Developed Property shall further be classified as Residential Property or
Non-Residential Property. Each Assessor’s Parcel of Residential Property shall further be
classified as a Single Family Residential Property, or Multifamily Property. Each Assessor’s
Parcel of Single Family Residential Property shall be further categorized into Land Use
Categories based on its Building Square Footage and assigned to its appropriate Assigned
Special Tax rate.
In the event that an Assessor’s Parcel for which one or more Building Permits have been issued
and the County has not yet assigned final Assessor’s Parcel Number(s) to the Residential
Unit(s) (in accordance with the Final Map or Condominium Plan) on such Assessor’s Parcel, the
amount of the Special Tax levy on such Assessor’s Parcel for each Fiscal Year shall be
determined as follows: (1) the CFD Administrator shall first determine an amount of the
Maximum Special Tax levy for such Assessor’s Parcel, based on the classification of such
Assessor’s Parcel as Undeveloped Property; (2) the amount of the Special Tax levy for the
Residential Units on such Assessor’s Parcel for which Building Permits have been issued shall
be determined based on the Developed Property Special Tax rates and shall be taxed as
Developed Property in accordance with Step 1 of Section E below; and (3) the amount of the
Special Tax levy on the Taxable Property in such Assessor’s Parcel not subject to the Special
Tax levy in clause (2) shall be equal to: (A) the percentage of the Maximum Special Tax rate
levied on all other Undeveloped Property multiplied by the total of the amount determined in
clause (1), less the amount determined in clause (2).
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D. MAXIMUM SPECIAL TAX
1. Developed Property
The Maximum Special Tax for each Assessor’s Parcel of Single Family Residential Property
in any Fiscal Year shall be the greater of (i) the Assigned Special Tax or (ii) the Backup
Special Tax.
The Maximum Special Tax for each Assessor’s Parcel of Non-Residential or Multifamily
Residential Property shall be the applicable Assigned Special Tax described in Table 1 and
Table 2 of Section D.
a. Assigned Special Tax
Each Fiscal Year, each Assessor’s Parcel of Single Family Residential Property, Multifamily
Property or Non-Residential shall be subject to an Assigned Special Tax. The Assigned
Special Tax applicable to an Assessor's Parcel of Developed Property shall be determined
pursuant to Table 1 and Table 2 below.
TABLE 1
ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
WITHIN TAX ZONE 1
FISCAL YEAR 2025-2026
Land Use Category
Taxable
Unit
Building Square
Footage
Assigned
Special Tax
Per Taxable
Unit
1. Single Family Residential
Property RU Less than 1,900 sq. ft $4,147
2. Single Family Residential
Property RU
1,900 sq. ft to 2,100 sq.
ft $4,247
3. Single Family Residential
Property RU
Greater than 2,100 sq.
ft $4,397
4. Multifamily Property Acre N/A $46,851
5. Non-Residential Property Acre N/A $46,851
On each July 1, commencing July 1, 2026, the Assigned Special Tax rate for Developed
Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal
Year.
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TABLE 2
ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
WITHIN TAX ZONE 2
FISCAL YEAR 2025-2026
Land Use Category
Taxable
Unit
Building Square
Footage
Assigned
Special Tax
Per Taxable
Unit
1. Single Family Residential
Property RU Less than 2,100 sq. ft $4,784
2. Single Family Residential
Property RU
2,100 sq. ft to 2,300 sq.
ft $4,907
3. Single Family Residential
Property RU
Greater than 2,300 sq.
ft $5,144
4. Multifamily Property Acre N/A $26,440
5. Non-Residential Property Acre N/A $26,440
On each July 1, commencing July 1, 2026, the Assigned Special Tax rate for Developed
Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal
Year.
b. Multiple Land Use Categories
In some instances an Assessor’s Parcel of Developed Property may contain more than one
Land Use Type. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum
of the Maximum Special Tax for all Land Use Categories located on the Assessor’s Parcel.
The CFD Administrator’s allocation to each type of property shall be final.
c. Backup Special Tax
When a Final Map is recorded, the Administrator shall determine which Tax Zone the Final
Map area lies within and the Backup Special Tax for an Assessor’s Parcel within the Final
Map classified or to be classified as Single Family Property shall calculated according to the
following formula.
B = (U x A) / L
The terms above have the following meanings:
B = Backup Special Tax per per Assessor’s Parcel within the Final Map
U = Maximum Special Tax per Acre of Undeveloped Property per Section D.3 below
A = Acreage of Single Family Residential Property expected to exist in such Final Map at
the time of calculation, as determined by the Administrator
L = Number of Residential Units expected to exist in such Final Map at the time of
calculation, as determined by the Administrator.
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In the event any portion of the Final Map is changed or modified, the Backup Special Tax for
all Assessor’s Parcels within such changed or modified area shall be determined by Table 3
below:
TABLE 3
MAXIMUM SPECIAL TAX PER ACRE
Tax Zone
Maximum Special
Tax per Acre
1 $46,851
2 $26,440
In the event any superseding Final Map is recorded as a Final Map within the Boundaries of
the CFD, the Backup Special Tax for all Assessor’s Parcels within such Final Map shall be on
the rate per Acre shown in the table above. The Backup Special Tax shall not apply to
Multifamily Residential Property, or Non-Residential Property.
On each July 1, commencing July 1, 2026, the Backup Special Tax rate shall be increased by
two percent (2.00%) of the amount in effect in the prior Fiscal Year.
2. Approved Property
The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be
classified as Single Family Property shall be the Backup Special Tax computed pursuant to
Section D.1.c above.
The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be
classified as Multifamily Residential Property or Non-Residential Property shall be $46,851
per Acre for Tax Zone 1 and $26,440 per Acre for Tax Zone 2.
On each July 1, commencing July 1, 2026, the Maximum Special Tax rate for Approved
Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal
Year.
3. Undeveloped Property and Provisional Undeveloped Property
The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property and
Provisional Undeveloped Property that is not Exempt Property shall be equal to the product
of $46,851 per Acre for Tax Zone 1 and $26,440 per Acre for Tax Zone 2 multiplied by the
Acreage of such Assessor’s Parcel.
On each July 1, commencing July 1, 2026, the Maximum Special Tax rate for Undeveloped
and Provisional Undeveloped Property shall be increased by two percent (2.00%) of the
amount in effect in the prior Fiscal Year.
E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing Fiscal Year 2025-2026 and for each subsequent Fiscal Year, the City Council
shall levy Special Taxes on all Taxable Property in accordance with the following steps:
Step One: The Special Tax shall be levied Proportionately on each
Assessor’s Parcel of Developed Property at up to 100% of the applicable
Assigned Special Tax rate to satisfy the Special Tax Requirement.
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Step Two: If additional moneys are needed to satisfy the Special Tax Requirement after the
first step has been completed, the Special Tax shall be levied Proportionately on
each Assessor’s Parcel of Approved Property at up to 100% of the Maximum
Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the
Special Tax Requirement.
Step Three: If additional moneys are needed to satisfy the Special Tax Requirement after the
first two steps have been completed, the Annual Special Tax shall be levied
Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100%
of the Maximum Special Tax applicable to each such Assessor’s Parcel as
needed to satisfy the Special Tax Requirement.
Step Four: If additional moneys are needed to satisfy the Special Tax Requirement after the
first three steps have been completed, then the Special Tax levy on each
Assessor's Parcel of Developed Property for which the Maximum Special Tax is
the Backup Special Tax shall be increased Proportionately from the Assigned
Special Tax up to 100% of the Backup Special Tax as needed to satisfy the
Special Tax Requirement.
Step Five: If additional moneys are needed to satisfy the Special Tax Requirement after the
first four steps have been completed, the Special Tax shall be levied
Proportionately on each Assessor’s Parcel of Provisional Undeveloped Property
up to 100% of the Maximum Special Tax applicable to each such Assessor’s
Parcel as needed to satisfy the Special Tax Requirement.
Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal
Year against any Assessor’s Parcel of Residential Property as a result of a delinquency in the
payment of the Special Tax applicable to any other Assessor’s Parcel be increased by more
than ten percent (10%) above the amount that would have been levied in that Fiscal Year had
there never been any such delinquency or default.
F. EXEMPTIONS
The City shall classify as Exempt Property, in the following order of priority, (i) Assessor’s
Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in
use by the State of California, Federal or other local governments, including school districts, (ii)
Assessor’s Parcels which are used as places of worship and are exempt from ad valorem
property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels
which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by a
homeowners' association, (iv) Assessor’s Parcels with public or utility easements making
impractical their utilization for other than the purposes set forth in the easement, (v) Assessor’s
Parcels which are privately owned and are encumbered by or restricted solely for public uses, or
(vi) Assessor’s Parcels restricted to other types of public uses determined by the City Council,
provided that no such classification would reduce the total Acreage of all Taxable Property to
less than the amounts shown in Table 4 below.
TABLE 4
MINIMUM TAXABLE ACRES
Tax Zone Acres
1 5.46
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2 16.44
Notwithstanding the above, the City Council shall not classify an Assessor’s Parcel as Exempt
Property if such classification would reduce the total Acreage of all Taxable Property to less
than the Acres shown in Table 4 per Tax Zone. Assessor's Parcels which cannot be classified
as Exempt Property because such classification would reduce the Acreage of all Taxable
Property to less than the Acres shown in Table 4 per Tax Zone will be classified as Provisional
Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E.
G. PREPAYMENT OF SPECIAL TAX
The following additional definitions apply to this Section G:
“CFD Public Facilities” means $13,000,000 expressed in 2026 dollars, which shall increase by
the Construction Inflation Index on July 1, 2026, and on each July 1 thereafter, or such lower
amount (i) determined by the City Council as sufficient to provide the public facilities under the
authorized bonding program for CFD No. 2025-1, or (ii) determined by the City Council
concurrently with a covenant that it will not issue any more Bonds to be supported by Special
Tax levied under this Amended and Restated Rate and Method of Apportionment.
“Construction Fund” means an account specifically identified in the Indenture or functionally
equivalent to hold funds, which are currently available for expenditure to acquire or construct
public facilities eligible to be financed by CFD No. 2025-1.
“Construction Inflation Index” means the annual percentage change in the Engineering
News-Record Building Cost Index for the city of Los Angeles, measured as of the Calendar
Year which ends in the previous Fiscal Year. In the event this index ceases to be published, the
Construction Inflation Index shall be another index as determined by the City that is reasonably
comparable to the Engineering News-Record Building Cost Index for the city of Los Angeles.
“Future Facilities Costs” means the CFD Public Facilities minus public facility costs available
to be funded through existing construction or escrow accounts funded by the Outstanding
Bonds, and minus public facility costs funded by interest earnings on the Construction Fund
actually earned prior to the date of prepayment.
“Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of
Special Tax which will remain outstanding after the first interest and/or principal payment date
following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the
proceeds of prior prepayments of Special Tax.
1. Prepayment in Full
The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i)
Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Approved Property or
Undeveloped Property for which a Building Permit has been issued, (iii) Approved Property or
Undeveloped Property for which a Building Permit has not been issued and (iv) Assessor’s
Parcels of Public Property or Property Owner’s Association Property, or Provisional
Undeveloped Property that are not Exempt Property pursuant to Section F. The Maximum
Special Tax obligation applicable to an Assessor’s Parcel may be fully prepaid and the
obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described
herein; provided that a prepayment may be made only if there are no delinquent Special Taxes
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with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s
Parcel intending to prepay the Maximum Special Tax obligation for such Assessor’s Parcel shall
provide the CFD Administrator with written notice of intent to prepay, and within 5 business days
of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the
non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating
the Prepayment Amount (as defined below) for the Assessor’s Parcel. Within 15 days of receipt
of such non-refundable deposit, the CFD Administrator shall notify such owner of the
Prepayment Amount for the Assessor’s Parcel. Prepayment must be made not less than 60
days prior to the redemption date for any Bonds to be redeemed with the proceeds of such
prepaid Special Taxes.
The Prepayment Amount (defined below) shall be calculated as follows (capitalized terms are
defined below):
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Equals: Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as follows:
1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.
2. For an Assessor’s Parcel of Developed Property, compute the Maximum Special Tax
for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped
Property for which a Building Permit has been issued, compute the Maximum Special Tax
for the Assessor’s Parcel as though it was already designated as Developed Property,
based upon the Building Permit which has been issued for the Assessor’s Parcel. For an
Assessor’s Parcel of Approved Property or Undeveloped Property for which a Building
Permit has not been issued, Public Property, Property Owner’s Association Property, or
Provisional Undeveloped Property to be prepaid compute the Maximum Special Tax for the
Assessor’s Parcel.
3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount
of Special Taxes that could be levied at the Maximum Special Tax at build out of all
Assessor’s Parcels of Taxable Property based on the applicable Maximum Special Tax for
Assessor’s Parcels of Developed Property not including any Assessor’s Parcels for which
the Special Tax obligation has been previously prepaid.
4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the
Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the
Prepayment Amount (the “Bond Redemption Amount”).
5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any,
on the Outstanding Bonds to be redeemed (the “Redemption Premium”).
6. Determine the Future Facilities Costs.
7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined
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pursuant to paragraph 6 to determine the amount of Future Facilities Costs for the
Assessor’s Parcel (the “Future Facilities Amount”).
8. Determine the amount needed to pay interest on the Bond Redemption Amount from
the first bond interest and/or principal payment date following the current Fiscal Year until
the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed
from Special Tax prepayments.
9. Determine the Special Taxes levied on the Assessor’s Parcel in the current Fiscal Year
which have not yet been paid.
10. Determine the amount the CFD Administrator reasonably expects to derive from the
investment of the Bond Redemption Amount and the Redemption Premium from the date of
prepayment until the redemption date for the Outstanding Bonds to be redeemed with the
Prepayment Amount.
11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount
derived pursuant to paragraph 10 (the “Defeasance Amount”).
12. Verify the administrative fees and expenses of the CFD, including the cost of
computation of the Prepayment Amount, the cost to invest the Prepayment Amount, the cost
of redeeming the Outstanding Bonds, and the cost of recording notices to evidence the
prepayment of the Maximum Special Tax obligation for the Assessor’s Parcel and the
redemption of Outstanding Bonds (the “Administrative Fees and Expenses”).
13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of: (a) the
expected reduction in the reserve requirement (as defined in the Indenture), if any,
associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b)
the amount derived by subtracting the new reserve requirement (as defined in the Indenture)
in effect after the redemption of Outstanding Bonds as a result of the prepayment from the
balance in the reserve fund on the prepayment date, but in no event shall such amount be
less than zero.
14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the
Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the
Administrative Fees and Expenses, less the Reserve Fund Credit.
15. From the Prepayment Amount, the Bond Redemption Amount, the Redemption
Premium, and Defeasance Amount shall be deposited into the appropriate fund as
established under the Indenture and be used to redeem Outstanding Bonds or make debt
service payments. The Future Facilities Amount shall be deposited into the Construction
Fund. The Administrative Fees and Expenses shall be retained by the CFD.
The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds.
In such event, the increment above $5,000 or an integral multiple thereof will be retained in the
appropriate fund established under the Indenture to be used with the next redemption from
other Special Tax prepayments of Outstanding Bonds or to make debt service payments.
As a result of the payment of the current Fiscal Year’s Special Tax levy as determined pursuant
to paragraph 9 above, the CFD Administrator shall remove the current Fiscal Year’s Special Tax
levy for the Assessor’s Parcel from the County tax roll. With respect to any Assessor’s Parcel for
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which the Maximum Special Tax obligation is prepaid, the City Council shall cause a suitable
notice to be recorded in compliance with the Act, to indicate the prepayment of Maximum
Special Tax obligation and the release of the Special Tax lien for the Assessor’s Parcel, and the
obligation to pay the Special Tax for such Assessor’s Parcel shall cease.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount
of Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property after
the proposed prepayment will be at least 1.1 times maximum annual debt service on the Bonds
that will remain outstanding after the prepayment plus the estimated annual Administrative
Expenses.
Tenders of Bonds in prepayment of the Maximum Special Tax obligation may be accepted upon
the terms and conditions established by the City Council pursuant to the Act. However, the use
of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the
City Council.
2. Prepayment in Part
The Maximum Special Tax obligation for an Assessor’s Parcel of Developed Property, Approved
Property or Undeveloped Property may be partially prepaid. For purposes of determining the
partial prepayment amount, the provisions of Section G.1 shall be modified as provided by the
following formula:
PP = ((PE – A) x F) + A
These terms have the following meaning:
PP = Partial Prepayment Amount
PE = the Prepayment Amount calculated according to Section G.1
F = the percent by which the owner of the Assessor’s Parcel(s) is partially
prepaying the Maximum Special Tax obligation
A = the Administrative Fees and Expenses determined pursuant to Section G.1
The owner of an Assessor’s Parcel who desires to partially prepay the Maximum Special Tax
obligation for the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent
to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum
Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be
acting as the escrow agent, if any. Within 5 days of receipt of such notice, the CFD
Administrator shall notify such property owner of the amount of the non-refundable deposit
determined to cover the cost to be incurred by the CFD in calculating the amount of a partial
prepayment. Within 15 business days of receipt of such non-refundable deposit, the CFD
Administrator shall notify such owner of the amount of the Partial Prepayment Amount for the
Assessor’s Parcel. A Partial Prepayment Amount must be made not less than 60 days prior to
the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial
Prepayment Amount.
With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is partially
prepaid, the CFD Administrator shall (i) distribute the Partial Prepayment Amount as provided in
Paragraph 15 of Section G.1, and (ii) indicate in the records of the CFD that there has been a
Partial Prepayment for the Assessor’s Parcel and that a portion of the Maximum Special Tax
obligation equal to the remaining percentage (1.00 - F) of the Maximum Special Tax obligation
will continue to be levied on the Assessor’s Parcel pursuant to Section E.
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H. TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding the Special Tax shall be levied on all
Assessor’s Parcels subject to the Special Tax. The Special Tax shall cease not later than the
2069-2070 Fiscal Year, however, Special Tax will cease to be levied in an earlier Fiscal Year if
the CFD Administrator has determined (i) that all the required interest and principal payments
on the CFD No. 2025-1 Bonds have been paid; (ii) all authorized facilities of CFD No. 2025-1
have been acquired and all reimbursements to the developer have been paid, (iii) no delinquent
Special Tax remain uncollected and (iv) all other obligations of CFD No. 2025-1 have been
satisfied.
I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad
valorem property taxes, provided, however, that CFD No. 2025-1 may collect Special Taxes at a
different time or in a different manner if necessary to meet its financial obligations, and may
covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted
by the Act.
J. APPEALS OF SPECIAL TAXES
Any taxpayer may file a written appeal of the Special Taxes on his/her Assessor’s Parcel(s) with
the CFD Administrator, provided that the appellant is current in his/her payments of Special
Taxes. During pendency of an appeal, all Special Taxes previously levied must be paid on or
before the payment date established when the levy was made. The appeal must specify the
reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall
review the appeal, meet with the appellant if the CFD Administrator deems necessary, and
advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the
CFD Administrator shall grant a credit to eliminate or reduce future Special Taxes on the
appellant’s Assessor’s Parcel(s). No refunds of previously paid Special Taxes shall be made.
The CFD Administrator shall interpret this Amended and Restated Rate and Method of
Apportionment and make determinations relative to the annual levy and administration of the
Special Taxes and any taxpayer who appeals, as herein specified.
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