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HomeMy WebLinkAboutMINUTES - 02092010 - C.34RECOMMENDATION(S): ACCEPT the FY08-09 Community Facilities District Administration Report on County of Contra Costa Community Facilities District No. 2001-1 (Norris Canyon) as required by Sections 50075.3 and 53411 of the California Government Code. FISCAL IMPACT: None. The report relates to Special Taxes approved by voters and bonds issued and secured by said Special Taxes. BACKGROUND: On June 5, 2001 the Contra Costa County Board of Supervisors authorized the establishment of Community Facilities District No. 2001-1 (Norris Canyon). The creation of the Community Facilities District (CFD) authorized the levy of a Mello-Roos Special Tax on the Norris Canyon Estates subdivision. The action of the Board also authorized the issuance of bonded indebtedness secured by the approved Special Tax in the amount of $7,220,000. The (CFD) bonds were issued on June 14, 2001. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 02/09/2010 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Gayle B. Uilkema, District II Supervisor Mary N. Piepho, District III Supervisor Susan A. Bonilla, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Annaliza Alejandro (925)335-7225 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: February 9, 2010 David J. Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: Stephen Ybarra, County Auditor-Controller C.34 To:Board of Supervisors From:Stephen Ybarra, Auditor-Controller Date:February 9, 2010 Contra Costa County Subject:County of Contra Costa Community Facilities District No. 2001-1 (Norris Canyon) The California Government Code Sections 50075.3 and 53411 require that specified information be provided to the Board of Supervisors on an annual basis. The report requirements include information on Mello-Roos CFD Special Taxes collected and CFD Bond issued. The attached CFD Administration Report fulfills the requirement of the Government Code. The reporting requirements are summarized below: BACKGROUND: (CONT'D) Section 50075.3 Item (a): Identify amount of special taxes that have been collected and expended. Response to Item (a): The fiscal year 2008-09 special tax levy was $570,730. Since the CFD is on the County Teeter Plan, the full amount of the tax levy was collected. Of this amount, $525,205 was used to pay debt services in March and September 2009 on the CFD bonds. Approximately $31,500 was collected to fund uncured delinquencies, and the remaining $14,025 was expended on administrative costs for the CFD. Item (b): Identify the status of any project required or authorized to be funded by the special taxes. Response to Item (b): All CFD No. 2001-1 improvements have been completed and accepted by the Public Works division of the County. Section 53411 Item (a): Identify the amount of bonds that have been collected and expended. Response to Item (a): A total of $7,220,000 in special tax bonds was issued by the County on June 14, 2001. Upon issuance of the bonds, $6,000,000 from bond proceeds was deposited into the Improvement Fund and has been used to acquire the CFD No. 2001-1 improvements from the developer. An additional $170,000 was used to pay the costs of issuing the bonds. Approximately $417,000 was deposited in the Reserve Fund, and the remaining $487,000 was deposited in the Bond Fund to be used for capitalized interest. Through September 1, 2009, principal payments totaling $900,000 have been made to retire matured bonds. As of the date of this Report, $6,320,000 in bonds is outstanding. Item (b): Identify the status of any project required or authorized to be funded from bond proceeds: Response to Item (b): All CFD No. 2001-1 improvements have been completed and accepted by the Public Works division of the County. Not part of the Government Code required report, but provided as a matter of information is the following information on the incidence of delinquencies within the District. The total amount collected by the County for the fiscal year 2008-09 CFD special tax levy was $570,730. Property owners for 11 parcels were delinquent a total of $19,950 in payments of the fiscal year 2008-09 CFD special tax levy. The magnitude of the delinquencies in the District is below the threshold for which the County is obligated to take affirmative action to remedy. ATTACHMENTS FY2008-09 Admin Report COUNTY OF CONTRA COSTA COMMUNITY FACILITIES DISTRICT NO. 2001-1 (NORRIS CANYON) CFD TAX ADMINISTRATION REPORT FISCAL YEAR 2009-10 January 11, 2010 Community Facilities District No. 2001-1 CFD Tax Administration Report TABLE OF CONTENTS Section Page Executive Summary............................................................................................................. i I. Introduction..........................................................................................................................1 II. Purpose of Report ................................................................................................................3 III. Special Tax Requirement.....................................................................................................5 IV. Special Tax Levy.................................................................................................................7 V. Development Update .........................................................................................................11 VI. Status of Public Improvements..........................................................................................13 VII. CFD Funds.........................................................................................................................15 VIII. Prepayments.......................................................................................................................17 IX. Delinquencies.....................................................................................................................19 X. Foreclosure Covenant........................................................................................................21 XI. Senate Bill 165 Reporting Requirements...........................................................................23 Appendix A – Summary of Fiscal Year 2009-10 Special Tax Levy Appendix B – Special Tax Levy for Fiscal Year 2009-10 Appendix C – Rate and Method of Apportionment of Special Tax Appendix D – Boundary Map of Community Facilities District No. 2001-1 Appendix E – Assessor’s Parcel Maps for Fiscal Year 2009-10 County of Contra Costa i Fiscal Year 2009-10 CFD No. 2001-1 CFD Tax Administration Report EXECUTIVE SUMMARY The following summary provides a brief overview of the main points from this report regarding the County of Contra Costa Community Facilities District No. 2001-1 (Norris Canyon) (“CFD No. 2001-1”): Fiscal Year 2009-10 Special Tax Levy Number of Taxed Parcels Total Special Tax Levy 256 $447,601 For further detail regarding the special tax levy, or special tax rates, please refer to Section IV of this report. Development Status for Fiscal Year 2009-10 Land Use Category Parcels or Acres Residential Property 256 parcels * Other Property 0 parcels Undeveloped Property 66.9 acres * Does not include one parcel that has prepaid its special tax obligation. For more information regarding the status of development in CFD No. 2001-1, please see Section V of this report. Delinquency Summary Delinquent Amount for FY 2008-09 (as of January 6, 2010) Total Levy for FY 2008-09 Delinquency Rate $19,950 $570,730 3.50% For additional delinquency information, including historical delinquency rates, please see Section IX of this report. County of Contra Costa ii Fiscal Year 2009-10 CFD No. 2001-1 CFD Tax Administration Report Outstanding Bonds Summary 2001 Special Tax Bonds Issuance Date Original Principal Amount Retired Current Amount Outstanding June 2001 $7,220,000 $900,000 * $6,320,000 * * As of the date of this report. County of Contra Costa 1 Fiscal Year 2009-10 CFD No. 2001-1 CFD Tax Administration Report I. INTRODUCTION Community Facilities District No. 2001-1 On June 5, 2001, the County of Contra Costa (the “County”) Board of Supervisors established Community Facilities District No. 2001-1 (Norris Canyon) (“CFD No. 2001-1” or the “CFD”). In a landowner election held on the same day, the sole owner of property within the CFD voted to authorize the levy of a Mello-Roos special tax on property within CFD No. 2001-1. The landowner also voted to incur bonded indebtedness, secured by special taxes levied on property within the CFD, in an amount not to exceed $7,220,000. On June 14, 2001, special tax bonds (the “Bonds”) in the principal amount of $7,220,000 were issued on behalf of CFD No. 2001-1. A special tax will be levied on property within the CFD in fiscal year 2009-10 in order to pay debt service obligations in calendar year 2010. The CFD boundary encompasses a 389-acre site that is proposed for the Norris Canyon Estates residential community. The CFD is located in an unincorporated area of the County just west of the City of San Ramon. At build out, the project was originally expected to include 361 single family detached homes. As of June 1, 2009, 257 building permits have been issued, two of which were issued during the past fiscal year for new residential home construction. The Mello-Roos Community Facilities Act of 1982 The reduction in property tax revenues that resulted from the passage of Proposition 13 in 1978 required public agencies and real estate developers to look for other means to generate funding for public infrastructure. The funding available from traditional assessment districts was limited by certain requirements of the assessment acts, and it became clear that a more flexible funding tool was needed. In response, the California State Legislature (the “Legislature”) approved the Mello-Roos Community Facilities Act of 1982 (the “Act”) which provides for the levy of a special tax within a defined geographic area (i.e., a community facilities district) if such levy is approved by two-thirds of the qualified electors in the area. The Act can generate funding for a broad range of facilities and special taxes can be allocated to property in any reasonable manner other than on an ad valorem basis. A community facilities district is authorized to issue tax-exempt bonds that are secured by land within the district. If a parcel does not pay the special tax levied on it, a public agency can foreclose on the parcel and use the proceeds of the foreclosure to ensure that bondholders receive interest and principal payments on the bonds. Because bonds issued by a community facilities district are land-secured, there is no risk to a public agency’s general fund or taxing capacity. In addition, because the bonds are tax-exempt, they typically carry an interest rate that is lower than conventional construction financing. County of Contra Costa 2 Fiscal Year 2009-10 CFD No. 2001-1 CFD Tax Administration Report (THIS PAGE INTENTIONALLY LEFT BLANK) County of Contra Costa 3 Fiscal Year 2009-10 CFD No. 2001-1 CFD Tax Administration Report II. PURPOSE OF REPORT This CFD Tax Administration Report (the “Report”) presents findings from research and financial analysis performed by Goodwin Consulting Group, Inc. to determine the fiscal year 2009-10 special tax levy for CFD No. 2001-1. The Report is intended to provide information to interested parties regarding the current financial obligations of the CFD, special taxes levied in fiscal year 2009-10, and information on the public facilities authorized to be funded by the CFD. The Report also summarizes development activity as well as other pertinent information (e.g., prepayments, delinquencies, and foreclosures) on property within the CFD. In addition, the Report provides all of the information that must be filed with the County Board of Supervisors pursuant to the requirements of Senate Bill 165. The remainder of the Report is organized as follows: Section III identifies the financial obligations of CFD No. 2001-1 for fiscal year 2009- 10. Section IV provides a summary of the special tax categories and the methodology that is used to apportion the special tax among parcels in the CFD. The maximum special tax rates for fiscal year 2009-10 are also identified in this section. Section V provides an update of the development activity occurring within CFD No. 2001-1, including new building permit activity. Section VI provides information on the public improvements authorized to be funded by CFD No. 2001-1. Section VII provides information regarding funds established for the Bonds, including current balances in such funds. Section VIII identifies parcels, if any, that have prepaid their special tax obligation. Section IX provides information regarding special tax delinquencies in CFD No. 2001-1. Section X provides information on covenants regarding foreclosure on delinquent parcels. Section XI provides a summary of the reporting requirements set forth in Senate Bill 165 and the information needed for the County to respond to these requirements. County of Contra Costa 4 Fiscal Year 2009-10 CFD No. 2001-1 CFD Tax Administration Report (THIS PAGE INTENTIONALLY LEFT BLANK) County of Contra Costa 5 Fiscal Year 2009-10 CFD No. 2001-1 CFD Tax Administration Report III. SPECIAL TAX REQUIREMENT Pursuant to the Rate and Method of Apportionment of Special Tax (the “RMA”) for CFD No. 2001-1, which was adopted as an exhibit to the Resolution of Formation of CFD No. 2001-1, the Special Tax Requirement means the total amount needed each fiscal year to (i) pay principal and interest on bonds, (ii) create or replenish reserve funds, (iii) cure any delinquencies in the payment of principal or interest on indebtedness of CFD No. 2001-1 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, and (iv) pay administrative expenses. For fiscal year 2009-10, the Special Tax Requirement is $447,601 and is calculated as follows: Community Facilities District No. 2001-1 Special Tax Requirement for Fiscal Year 2009-10 Debt Service $522,955 Interest Payment on Bonds Due March 1, 2010 ($186,478) Interest Payment on Bonds Due Sept. 1, 2010 ($186,478) Principal Payment on Bonds Due Sept. 1, 2010 ($150,000) Administrative Expenses $17,398 Surplus Funds to Reduce Special Tax Requirement ($92,752) Fiscal Year 2009-10 Special Tax Requirement * $447,601 * Total may not sum due to rounding. County of Contra Costa 6 Fiscal Year 2009-10 CFD No. 2001-1 CFD Tax Administration Report (THIS PAGE INTENTIONALLY LEFT BLANK) County of Contra Costa 7 Fiscal Year 2009-10 CFD No. 2001-1 CFD Tax Administration Report IV. SPECIAL TAX LEVY Special Tax Categories Special taxes within CFD No. 2001-1 are levied pursuant to the methodology set forth in the RMA. The RMA establishes various special tax categories against which the special tax can be levied each fiscal year, including Residential Property, Other Property, and Undeveloped Property. [Capitalized terms are defined in the RMA in Appendix C of this Report.] Residential Property is defined as any parcel within the CFD for which a building permit for construction of a residential structure was issued prior to June 1 of the preceding fiscal year. Other Property means all taxable parcels in the CFD for which a building permit was issued prior to June 1 of the preceding fiscal year for a structure that is not used for residential purposes and is not owned by a homeowners’ association or public agency. Undeveloped Property is defined as all taxable parcels in the CFD for which a building permit has not been issued prior to June 1 of the preceding fiscal year. Maximum Special Tax Rates The maximum special tax rates applicable to each category of property in CFD No. 2001-1 are set forth in Section C of the RMA. The actual amount of the maximum special tax which will be levied on each land use category in fiscal year 2009-10, is determined by the method of apportionment included in Section E of the RMA. The following table identifies the maximum special taxes that can be levied on property in CFD No. 2001-1. Community Facilities District No. 2001-1 Maximum Special Tax Rates Tax Category Description Maximum Special Tax 1 Residential Property $2,100 per parcel 2 Other Property $2,100 per residential unit planned on the parcel before it became Other Property 3 Undeveloped Property $3,360 per acre County of Contra Costa 8 Fiscal Year 2009-10 CFD No. 2001-1 CFD Tax Administration Report Changes to Norris Canyon Tentative Map The maximum special tax rates shown above assume that a particular number of residential units will be developed within Norris Canyon consistent with the tentative map approved by the County Board of Supervisors in August 1997. To the extent changes are proposed to the tentative map in future years that would reduce the number of residential units within the project, the County must either deny the revision to the tentative map or require a prepayment of special taxes by the developer proposing the tentative map change. Such prepayment would be in an amount sufficient to retire a portion of the bonds and maintain 110% debt service coverage with the reduced special tax revenues that will result after the tentative map revision. To date, development in Norris Canyon has been consistent with the approved tentative map. Apportionment of Special Taxes The amount of special tax levied on each parcel in the CFD each fiscal year will be determined by application of Section E of the RMA. Pursuant to this section, the Special Tax Requirement will be allocated as follows: The first step requires special taxes to be levied on each parcel of Residential Property and Other Property up to 100% of the applicable maximum special tax rate. If additional revenue is needed after the first step is completed, and after applying capitalized interest to the Special Tax Requirement, then a special tax will be levied on each parcel of Undeveloped Property up to 100% of the applicable maximum special tax. If additional revenues are still needed to pay annual obligations of the CFD after the maximum special tax is levied on Residential Property, Other Property, and Undeveloped Property, a special tax will be levied on Homeowners’ Association Property and parcels of Public Property that originally had planned units, as defined in the RMA. Application of the maximum special tax rate to the 256 Residential Property parcels for fiscal year 2009-10 will generate special tax revenue of $537,600. However, since the Special Tax Requirement for fiscal year 2009-10 is only $447,601, Residential Property will not be taxed at the maximum tax rate. Only the amount needed to generate the Special Tax Requirement of $447,601 will be levied, which is approximately 83.3% of the maximum, or $1,748 per parcel. Since the tax on Residential Property fully funds the Special Tax Requirement for fiscal year 2009-10, no tax shall be levied on Undeveloped Property. The actual special tax rates and the number of units and/or acres of taxable property on which those rates are levied for fiscal year 2009-10 are shown in the table on the following page. County of Contra Costa 9 Fiscal Year 2009-10 CFD No. 2001-1 CFD Tax Administration Report Community Facilities District No. 2001-1 Fiscal Year 2009-10 Special Tax Levy Land Use Category Maximum Special Tax Rates Fiscal Year 2009-10 Actual Special Tax Rates Parcels/Acres Taxed Total Special Tax Levy Residential Property $2,100 per parcel $1,748 per parcel 256 parcels * $447,601 Undeveloped Property $3,360 per acre $0 per acre 0 acres $0 Total Special Tax Levy for Fiscal Year 2009-10 $447,601 * Total does not include one parcel that has had its special tax obligation prepaid and therefore is no longer subject to the annual tax. County of Contra Costa 10 Fiscal Year 2009-10 CFD No. 2001-1 CFD Tax Administration Report (THIS PAGE INTENTIONALLY LEFT BLANK) County of Contra Costa 11 Fiscal Year 2009-10 CFD No. 2001-1 CFD Tax Administration Report V. DEVELOPMENT UPDATE From June 1, 2008, to May 31, 2009, two building permits have been issued to construct single family homes within CFD No. 2001-1. In total, 257 building permits have been issued and no Other Property currently exists within CFD No. 2001-1. Based on the current status of development in CFD No. 2001-1, the following table summarizes the allocation of parcels to the special tax categories defined in the RMA: Community Facilities District No. 2001-1 Allocation to Special Tax Categories Fiscal Year 2009-10 Tax Category Description Number of Parcels 1 Residential Property 256* 2 Other Property 0 3 Undeveloped Property 106 * Total does not include one parcel that has had its special tax obligation prepaid and therefore is no longer subject to the annual tax. County of Contra Costa 12 Fiscal Year 2009-10 CFD No. 2001-1 CFD Tax Administration Report (THIS PAGE INTENTIONALLY LEFT BLANK) County of Contra Costa 13 Fiscal Year 2009-10 CFD No. 2001-1 CFD Tax Administration Report VI. STATUS OF PUBLIC IMPROVEMENTS CFD No. 2001-1 was formed to finance the widening of Norris Canyon Road, starting at the intersection of Bollinger Canyon Road and continuing a distance of 7,700 feet. Improvements to Norris Canyon Road include: (1) grading, pavement, curbs and gutters, rock shoulder, traffic signing and striping, and street lights; (2) construction of sanitary sewer mains, structures, fittings, and appurtenances; (3) construction of water distribution facilities and appurtenances; (4) construction of joint utility distribution facilities for electrical, telephone, gas, cable and television, including trenching, conduit and cable installation, pull and splice boxes, fittings and appurtenances, and relocation of overhead facilities; (4) construction of landscaping and irrigation facilities, including soil preparation, landscape materials, irrigation pipes, fittings, and appurtenances; (5) required attendant public fees and design and construction engineering fees; and (6) acquisition of all necessary interests in real property. The developer entered into an Acquisition Agreement with the County that contains provisions that set forth the process by which completed improvements will be acquired with bond proceeds that are on deposit in the Improvement Fund for the CFD. The Acquisition Agreement obligates the developer to pay any costs of the improvements that are not covered by funds available in the Improvement Fund. All Norris Canyon Road improvements have been completed and accepted by the Public Works division of the County. Per the Acquisition Agreement with the County, the balance in the CFD Improvement Fund was used to acquire the completed improvements from the developer. County of Contra Costa 14 Fiscal Year 2009-10 CFD No. 2001-1 CFD Tax Administration Report (THIS PAGE INTENTIONALLY LEFT BLANK) County of Contra Costa 15 Fiscal Year 2009-10 CFD No. 2001-1 CFD Tax Administration Report VII. CFD FUNDS Six funds were established pursuant to the Fiscal Agent Agreement between the County and The Bank of New York Mellon Trust Company (the “Fiscal Agent”). Following is a brief description of the purpose of each fund. The Improvement Fund was created exclusively to pay the cost of improvements until all authorized facilities have been paid. The Improvement Fund, due to completion of all improvements, has been closed. The Reserve Fund was established as a reserve for the payment of principal and interest on the bonds in the event the balance in the Special Tax Fund is insufficient to make debt service payments. The Fiscal Agent will maintain the Reserve Fund. The Reserve Requirement is $528,200 as of June 30, 2009. The Bond Fund was created exclusively to pay principal and interest on CFD indebtedness. The Bond Fund will be held by the Fiscal Agent; twice each year, the fiscal agent will use proceeds in this account to pay interest and/or principal on bonds. If, on any interest payment date, amounts in the Bond Fund are insufficient to pay debt service that is due on such date, the Fiscal Agent must withdraw from the Reserve Fund to cover the shortfall. The Special Tax Fund was established as a fund to be held by the County Auditor- Controller (the “Auditor”) into which special tax revenues collected by the County will be deposited. Not later than three business days prior to each interest payment date on bonds, the Auditor will transfer money from the Special Tax Fund to the Fiscal Agent to pay interest and principal due on bonds, as well as any amount needed to bring the Reserve Fund up to the required reserve amount. Any remaining balance in the Special Tax Fund will be transferred to the Administrative Expense Fund. The Administrative Expense Fund will be held by the Auditor and used to pay CFD administrative expenses. Each year, the Auditor will transfer any excess amount in the Administrative Expense Fund to the Special Tax Fund. The Costs of Issuance Fund will be held by the Fiscal Agent and will be disbursed to pay costs associated with formation of CFD No. 2001-1 and issuance of the Bonds. This fund has been closed. Money held in any of the aforementioned funds can be invested by the Fiscal Agent at the direction of the County and in conformance with limitations set forth in the Fiscal Agent Agreement. Investment interest earnings, if any, will generally be applied to the fund for which the investment is made. County of Contra Costa 16 Fiscal Year 2009-10 CFD No. 2001-1 CFD Tax Administration Report Fund Balances As of June 30, 2009, the various funds had the following balances: Community Facilities District No. 2001-1 Fund Balances as of June 30, 2009 Reserve Fund $601,281 Bond Fund $0 Special Tax Fund $451,229 (1) Administrative Expense Fund $30,422 (1) (1) This balance is as of December 11, 2009. County of Contra Costa 17 Fiscal Year 2009-10 CFD No. 2001-1 CFD Tax Administration Report VIII. PREPAYMENTS The special tax lien for one property in CFD No. 2001-1 has been fully prepaid, and therefore, this property, APN 211-260-011, is no longer subject to the annual special tax levy. All other parcels of taxable property within the CFD are subject to the annual special tax levy. County of Contra Costa 18 Fiscal Year 2009-10 CFD No. 2001-1 CFD Tax Administration Report (THIS PAGE INTENTIONALLY LEFT BLANK) County of Contra Costa 19 Fiscal Year 2009-10 CFD No. 2001-1 CFD Tax Administration Report IX. DELINQUENCIES As of January 6, 2010, the Contra Costa County Auditor’s Office reports the following delinquency amounts for CFD No. 2001-1: Community Facilities District No. 2001-1 Delinquencies as of January 6, 2010 Fiscal Year Parcels Delinquent Delinquent Amount CFD Tax Levied Percent Delinquent 2007-08 2 $3,150 $537,639 0.59% 2008-09 11 $19,950 $570,730 3.50% County of Contra Costa 20 Fiscal Year 2009-10 CFD No. 2001-1 CFD Tax Administration Report (THIS PAGE INTENTIONALLY LEFT BLANK) County of Contra Costa 21 Fiscal Year 2009-10 CFD No. 2001-1 CFD Tax Administration Report X. FORECLOSURE COVENANT Covenants of the County The County may order the institution of a court action to foreclose the lien on a parcel within specified time limits if any payment of the special tax is delinquent. In such an action, the real property subject to the unpaid amount may be sold at a judicial foreclosure sale. Pursuant to the Bonds’ covenants, the County shall review its records in connection with the collection of the special tax on or about March 30 and June 30 of each year to compare the amount of special tax levied in the CFD to the amount of special tax collected, and proceed as follows: Individual Delinquencies. If the Auditor determines that any single parcel subject to the special tax in the CFD is delinquent in the payment of special taxes in the aggregate amount of (i) $7,500 or more if all the property within the CFD is on the Teeter Plan, or (ii) $3,000 or more if any of the property in the CFD is not on the Teeter Plan, then the Auditor shall send or cause to be sent a notice of delinquency (and a demand for immediate payment thereof) to the property owner within 60 days of such determination, and (if the delinquency remains uncured) foreclosure proceedings shall be commenced by the County within 120 days of such determination. Aggregate Delinquencies. If the Auditor determines that the total amount of delinquent special tax for the prior fiscal year for the entire CFD, (including the total of delinquencies under the preceding paragraph), exceeds 5% of the total special tax due and payable for the prior fiscal year, the County shall notify or cause to be notified property owners who are then delinquent in the payment of special taxes (and demand immediate payment of the delinquency) within 60 days of such determination, and shall commence foreclosure proceedings within 120 days of such determination against each parcel of land in the CFD with a special tax delinquency. As a result of the CFD’s low tax delinquency rate for fiscal year 2008-09, the County has not been required to initiate foreclosure proceedings on parcels in CFD No. 2001-1. County of Contra Costa 22 Fiscal Year 2009-10 CFD No. 2001-1 CFD Tax Administration Report (THIS PAGE INTENTIONALLY LEFT BLANK) County of Contra Costa 23 Fiscal Year 2009-10 CFD No. 2001-1 CFD Tax Administration Report XI. SENATE BILL 165 REPORTING REQUIREMENTS On September 18, 2000, former Governor Gray Davis approved Senate Bill 165 which enacted the Local Agency Special Tax and Bond Accountability Act. In approving the bill, the Legislature pointed out that local agencies need to demonstrate to the voters that special taxes and bond proceeds are being spent on the facilities and services for which they were intended. To further this objective, the Legislature added Sections 50075.3 and 53411 to the California Government Code setting forth annual reporting requirements relative to special taxes collected and bonds issued by a local public agency. A response to each of the reporting requirements in SB 165 is provided below. Pursuant to the Sections 50075.3 and 53411, the chief fiscal officer of the County will, by January 1, 2002, and at least once a year thereafter, file a report with the Board of Supervisors (which may be this CFD Tax Administration Report) setting forth the following information. Section 50075.3 Item (a): Identify amount of special taxes that have been collected and expended. The fiscal year 2008-09 special tax levy was $570,730. Since the CFD is on the County Teeter Plan, the full amount of the tax levy was collected. Of this amount, $525,205 was used to pay debt service in March and September 2009 on the CFD bonds. Approximately $31,500 was collected to fund uncured delinquencies, and the remaining $14,025 was expended on administrative costs for the CFD. Item (b): Identify the status of any project required or authorized to be funded by the special taxes. All CFD No. 2001-1 improvements have been completed and accepted by the Public Works division of the County. Section 53411 Item (a): Identify the amount of bonds that have been collected and expended. A total of $7,220,000 in special tax bonds was issued by the County on June 14, 2001. Upon issuance of the bonds, $6,000,000 from bond proceeds was deposited into the Improvement Fund and has been used to acquire the CFD No. 2001-1 improvements from the developer. An additional $170,000 was used to pay the costs of issuing the bonds. Approximately $417,000 was deposited in the Reserve Fund, and the remaining $487,000 was deposited in the Bond Fund to be used for capitalized interest. Through September 1, 2009, principal payments totaling $900,000 have been made to retire matured bonds. As of the date of this Report, $6,320,000 in bonds is outstanding. County of Contra Costa 24 Fiscal Year 2009-10 CFD No. 2001-1 CFD Tax Administration Report Item (b): Identify the status of any project required or authorized to be funded from bond proceeds. All CFD No. 2001-1 improvements have been completed and accepted by the Public Works division of the County. APPENDIX A Summary of Fiscal Year 2009-10 Special Tax Levy Total Special Land Use Category Tax Levy Developed Property $2,100 per Parcel $1,748 per Parcel 256 units $447,601 Undeveloped Property $3,360 per Acre $0 per Acre 66.9 acres $0 Total Fiscal Year 2009-10 Special Tax Levy $447,601 Goodwin Consulting Group, Inc. Units/Acres Taxed Fiscal Year 2009-10 Actual Special Tax Rates Fiscal Year 2009-10 Maximum Special Tax Rates County of Contra Costa Community Facilities District No. 2001-1 (Norris Canyon) Special Tax Levy Summary for Fiscal Year 2009-10 APPENDIX B Special Tax Levy for Fiscal Year 2009-10 Assessor's Type of Status of Taxable Special Parcel Number Property Development Acres Tax 211 210 074 HOA HOA $0.00 211 210 079 HOA HOA $0.00 211 240 001 Residential Developed $1,748.44 211 240 003 Residential Developed $1,748.44 211 240 004 Residential Developed $1,748.44 211 240 005 Residential Developed $1,748.44 211 240 006 Residential Developed $1,748.44 211 240 007 Residential Developed $1,748.44 211 240 008 Residential Developed $1,748.44 211 240 009 Undeveloped Undeveloped $0.00 211 240 010 Undeveloped Undeveloped $0.00 211 240 011 Residential Developed $1,748.44 211 240 012 Undeveloped Undeveloped $0.00 211 240 013 Residential Developed $1,748.44 211 240 014 Residential Developed $1,748.44 211 240 015 Residential Developed $1,748.44 211 240 016 Residential Developed $1,748.44 211 250 001 Residential Developed $1,748.44 211 250 002 Undeveloped Undeveloped $0.00 211 250 003 Residential Developed $1,748.44 211 250 004 Residential Developed $1,748.44 211 250 005 Residential Developed $1,748.44 211 250 006 Residential Developed $1,748.44 211 250 007 Residential Developed $1,748.44 211 250 008 Residential Developed $1,748.44 211 250 009 Residential Developed $1,748.44 211 250 010 Residential Developed $1,748.44 211 250 011 Residential Developed $1,748.44 211 250 012 Residential Developed $1,748.44 211 250 013 Residential Developed $1,748.44 211 250 014 Residential Developed $1,748.44 211 250 015 Residential Developed $1,748.44 211 250 016 Residential Developed $1,748.44 211 250 017 Residential Developed $1,748.44 211 250 018 Residential Developed $1,748.44 211 250 019 Residential Developed $1,748.44 211 260 001 Residential Developed $1,748.44 211 260 002 Residential Developed $1,748.44 211 260 003 Residential Developed $1,748.44 211 260 004 Residential Developed $1,748.44 211 260 005 Residential Developed $1,748.44 211 260 006 Residential Developed $1,748.44 County of Contra Costa Community Facilities District No. 2001-1 (Norris Canyon) Special Tax Levy for Fiscal Year 2009-10 1 of 9 Assessor's Type of Status of Taxable Special Parcel Number Property Development Acres Tax County of Contra Costa Community Facilities District No. 2001-1 (Norris Canyon) Special Tax Levy for Fiscal Year 2009-10 211 260 007 Residential Developed $1,748.44 211 260 008 Residential Developed $1,748.44 211 260 009 Residential Developed $1,748.44 211 260 010 Residential Developed $1,748.44 211 260 011 Prepaid Prepaid $0.00 /1 211 260 012 Residential Developed $1,748.44 211 260 013 Residential Developed $1,748.44 211 260 014 Residential Developed $1,748.44 211 260 015 Residential Developed $1,748.44 211 260 016 Residential Developed $1,748.44 211 260 017 Residential Developed $1,748.44 211 260 018 Residential Developed $1,748.44 211 270 001 Residential Developed $1,748.44 211 270 002 Residential Developed $1,748.44 211 270 003 Residential Developed $1,748.44 211 270 004 Residential Developed $1,748.44 211 270 005 Residential Developed $1,748.44 211 270 006 Residential Developed $1,748.44 211 270 007 Residential Developed $1,748.44 211 270 008 Residential Developed $1,748.44 211 270 009 Residential Developed $1,748.44 211 270 010 Residential Developed $1,748.44 211 270 011 Residential Developed $1,748.44 211 280 001 Residential Developed $1,748.44 211 280 002 Residential Developed $1,748.44 211 280 003 Residential Developed $1,748.44 211 280 004 Residential Developed $1,748.44 211 280 005 Residential Developed $1,748.44 211 280 006 Residential Developed $1,748.44 211 280 007 Residential Developed $1,748.44 211 280 008 Residential Developed $1,748.44 211 280 009 Residential Developed $1,748.44 211 280 010 Residential Developed $1,748.44 211 280 011 Residential Developed $1,748.44 211 280 012 Residential Developed $1,748.44 211 280 013 Residential Developed $1,748.44 211 280 014 Residential Developed $1,748.44 211 280 015 Residential Developed $1,748.44 211 280 016 Residential Developed $1,748.44 211 280 017 Residential Developed $1,748.44 211 280 018 Residential Developed $1,748.44 211 280 019 Residential Developed $1,748.44 2 of 9 Assessor's Type of Status of Taxable Special Parcel Number Property Development Acres Tax County of Contra Costa Community Facilities District No. 2001-1 (Norris Canyon) Special Tax Levy for Fiscal Year 2009-10 211 280 020 Residential Developed $1,748.44 211 280 021 Residential Developed $1,748.44 211 280 022 Residential Developed $1,748.44 211 280 023 Residential Developed $1,748.44 211 280 024 Residential Developed $1,748.44 211 280 025 Residential Developed $1,748.44 211 280 026 Residential Developed $1,748.44 211 280 027 Residential Developed $1,748.44 211 280 028 Residential Developed $1,748.44 211 280 029 Residential Developed $1,748.44 211 280 030 Residential Developed $1,748.44 211 280 031 Residential Developed $1,748.44 211 280 032 Residential Developed $1,748.44 211 280 033 Residential Developed $1,748.44 211 280 034 Residential Developed $1,748.44 211 280 035 Residential Developed $1,748.44 211 280 036 Residential Developed $1,748.44 211 280 037 Residential Developed $1,748.44 211 280 038 Residential Developed $1,748.44 211 280 039 Residential Developed $1,748.44 211 290 001 Residential Developed $1,748.44 211 290 002 Residential Developed $1,748.44 211 290 003 Residential Developed $1,748.44 211 290 004 Residential Developed $1,748.44 211 290 005 Residential Developed $1,748.44 211 290 006 Residential Developed $1,748.44 211 290 007 Residential Developed $1,748.44 211 290 008 Residential Developed $1,748.44 211 290 009 Residential Developed $1,748.44 211 290 010 Residential Developed $1,748.44 211 290 011 Residential Developed $1,748.44 211 290 012 Residential Developed $1,748.44 211 290 013 Residential Developed $1,748.44 211 290 014 Residential Developed $1,748.44 211 290 015 Residential Developed $1,748.44 211 290 016 Residential Developed $1,748.44 211 290 017 Residential Developed $1,748.44 211 290 018 Residential Developed $1,748.44 211 290 019 Residential Developed $1,748.44 211 290 020 Residential Developed $1,748.44 211 300 001 Residential Developed $1,748.44 211 300 002 Residential Developed $1,748.44 3 of 9 Assessor's Type of Status of Taxable Special Parcel Number Property Development Acres Tax County of Contra Costa Community Facilities District No. 2001-1 (Norris Canyon) Special Tax Levy for Fiscal Year 2009-10 211 300 003 Residential Developed $1,748.44 211 300 004 Undeveloped Undeveloped $0.00 211 300 005 Undeveloped Undeveloped $0.00 211 300 006 Residential Developed $1,748.44 211 300 007 Undeveloped Undeveloped $0.00 211 300 008 Undeveloped Undeveloped $0.00 211 300 009 Residential Developed $1,748.44 211 300 010 Residential Developed $1,748.44 211 300 011 Residential Developed $1,748.44 211 300 012 Residential Developed $1,748.44 211 300 013 Residential Developed $1,748.44 211 300 014 Residential Developed $1,748.44 211 300 015 Residential Developed $1,748.44 211 300 016 Residential Developed $1,748.44 211 300 017 Residential Developed $1,748.44 211 300 018 Residential Developed $1,748.44 211 300 019 Residential Developed $1,748.44 211 300 020 Residential Developed $1,748.44 211 300 021 Residential Developed $1,748.44 211 300 022 Residential Developed $1,748.44 211 300 023 Residential Developed $1,748.44 211 300 024 Residential Developed $1,748.44 211 300 025 Residential Developed $1,748.44 211 300 026 Residential Developed $1,748.44 211 300 027 Residential Developed $1,748.44 211 310 001 Undeveloped Undeveloped $0.00 211 310 002 Undeveloped Undeveloped $0.00 211 310 003 Undeveloped Undeveloped $0.00 211 310 004 Undeveloped Undeveloped $0.00 211 310 005 Undeveloped Undeveloped $0.00 211 310 006 Undeveloped Undeveloped $0.00 211 310 007 Undeveloped Undeveloped $0.00 211 310 008 Residential Developed $1,748.44 211 310 009 Undeveloped Undeveloped $0.00 211 310 010 Undeveloped Undeveloped $0.00 211 310 011 Undeveloped Undeveloped $0.00 211 310 012 Undeveloped Undeveloped $0.00 211 310 013 Undeveloped Undeveloped $0.00 211 310 014 Undeveloped Undeveloped $0.00 211 310 015 Undeveloped Undeveloped $0.00 211 310 016 Undeveloped Undeveloped $0.00 211 310 017 Undeveloped Undeveloped $0.00 4 of 9 Assessor's Type of Status of Taxable Special Parcel Number Property Development Acres Tax County of Contra Costa Community Facilities District No. 2001-1 (Norris Canyon) Special Tax Levy for Fiscal Year 2009-10 211 310 018 Undeveloped Undeveloped $0.00 211 310 019 Undeveloped Undeveloped $0.00 211 310 020 Undeveloped Undeveloped $0.00 211 310 021 Undeveloped Undeveloped $0.00 211 320 001 Undeveloped Undeveloped $0.00 211 320 002 Residential Developed $1,748.44 211 320 003 Residential Developed $1,748.44 211 320 004 Undeveloped Undeveloped $0.00 211 320 005 Undeveloped Undeveloped $0.00 211 320 006 Undeveloped Undeveloped $0.00 211 320 007 Undeveloped Undeveloped $0.00 211 320 008 Undeveloped Undeveloped $0.00 211 320 009 Undeveloped Undeveloped $0.00 211 320 010 Undeveloped Undeveloped $0.00 211 320 011 Undeveloped Undeveloped $0.00 211 320 012 Residential Developed $1,748.44 211 320 013 Residential Developed $1,748.44 211 320 014 Residential Developed $1,748.44 211 320 015 Residential Developed $1,748.44 211 320 016 Residential Developed $1,748.44 211 320 017 Residential Developed $1,748.44 211 320 018 Undeveloped Undeveloped $0.00 211 330 001 Undeveloped Undeveloped $0.00 211 330 002 Undeveloped Undeveloped $0.00 211 330 003 Undeveloped Undeveloped $0.00 211 330 004 Undeveloped Undeveloped $0.00 211 330 005 Undeveloped Undeveloped $0.00 211 330 006 Undeveloped Undeveloped $0.00 211 330 007 Undeveloped Undeveloped $0.00 211 330 008 Undeveloped Undeveloped $0.00 211 330 009 Undeveloped Undeveloped $0.00 211 340 001 Undeveloped Undeveloped $0.00 211 340 002 Undeveloped Undeveloped $0.00 211 340 003 Undeveloped Undeveloped $0.00 211 340 004 Undeveloped Undeveloped $0.00 211 340 005 Undeveloped Undeveloped $0.00 211 340 006 Undeveloped Undeveloped $0.00 211 340 007 Undeveloped Undeveloped $0.00 211 350 001 Undeveloped Undeveloped $0.00 211 350 002 Undeveloped Undeveloped $0.00 211 350 003 Undeveloped Undeveloped $0.00 211 350 004 Residential Developed $1,748.44 5 of 9 Assessor's Type of Status of Taxable Special Parcel Number Property Development Acres Tax County of Contra Costa Community Facilities District No. 2001-1 (Norris Canyon) Special Tax Levy for Fiscal Year 2009-10 211 350 005 Residential Developed $1,748.44 211 350 006 Residential Developed $1,748.44 211 350 007 Undeveloped Undeveloped $0.00 211 350 008 Undeveloped Undeveloped $0.00 211 350 009 Undeveloped Undeveloped $0.00 211 350 010 Undeveloped Undeveloped $0.00 211 350 011 Undeveloped Undeveloped $0.00 211 350 012 Undeveloped Undeveloped $0.00 211 350 013 Undeveloped Undeveloped $0.00 211 350 014 Undeveloped Undeveloped $0.00 211 350 015 Undeveloped Undeveloped $0.00 211 350 016 Undeveloped Undeveloped $0.00 211 350 017 Undeveloped Undeveloped $0.00 211 360 001 Residential Developed $1,748.44 211 360 002 Residential Developed $1,748.44 211 360 003 Residential Developed $1,748.44 211 360 004 Residential Developed $1,748.44 211 360 005 Residential Developed $1,748.44 211 360 006 Residential Developed $1,748.44 211 360 007 Residential Developed $1,748.44 211 360 008 Residential Developed $1,748.44 211 360 009 Residential Developed $1,748.44 211 360 010 Residential Developed $1,748.44 211 360 011 Residential Developed $1,748.44 211 360 012 Residential Developed $1,748.44 211 360 013 Residential Developed $1,748.44 211 360 014 Residential Developed $1,748.44 211 360 015 Residential Developed $1,748.44 211 360 016 Residential Developed $1,748.44 211 360 017 Residential Developed $1,748.44 211 360 018 Residential Developed $1,748.44 211 360 019 Residential Developed $1,748.44 211 360 020 Residential Developed $1,748.44 211 360 021 Residential Developed $1,748.44 211 360 022 Residential Developed $1,748.44 211 360 023 Residential Developed $1,748.44 211 360 024 Residential Developed $1,748.44 211 360 025 Residential Developed $1,748.44 211 360 026 Residential Developed $1,748.44 211 360 027 Residential Developed $1,748.44 211 360 028 Residential Developed $1,748.44 211 360 029 Residential Developed $1,748.44 6 of 9 Assessor's Type of Status of Taxable Special Parcel Number Property Development Acres Tax County of Contra Costa Community Facilities District No. 2001-1 (Norris Canyon) Special Tax Levy for Fiscal Year 2009-10 211 360 030 Residential Developed $1,748.44 211 360 031 Residential Developed $1,748.44 211 360 032 Residential Developed $1,748.44 211 360 033 Residential Developed $1,748.44 211 360 034 Residential Developed $1,748.44 211 360 035 Residential Developed $1,748.44 211 360 036 Residential Developed $1,748.44 211 360 037 Residential Developed $1,748.44 211 360 038 Residential Developed $1,748.44 211 360 039 Residential Developed $1,748.44 211 360 040 Residential Developed $1,748.44 211 360 041 Residential Developed $1,748.44 211 360 042 Residential Developed $1,748.44 211 360 043 Residential Developed $1,748.44 211 370 001 Residential Developed $1,748.44 211 370 002 Residential Developed $1,748.44 211 370 003 Residential Developed $1,748.44 211 370 004 Residential Developed $1,748.44 211 370 005 Residential Developed $1,748.44 211 370 006 Residential Developed $1,748.44 211 370 007 Residential Developed $1,748.44 211 370 008 Residential Developed $1,748.44 211 370 009 Residential Developed $1,748.44 211 370 010 Residential Developed $1,748.44 211 370 011 Residential Developed $1,748.44 211 370 012 Residential Developed $1,748.44 211 370 013 Residential Developed $1,748.44 211 370 014 Residential Developed $1,748.44 211 370 015 Residential Developed $1,748.44 211 370 016 Residential Developed $1,748.44 211 370 017 Residential Developed $1,748.44 211 370 018 Undeveloped Undeveloped $0.00 211 370 019 Undeveloped Undeveloped $0.00 211 370 020 Undeveloped Undeveloped $0.00 211 370 021 Residential Developed $1,748.44 211 370 022 Residential Developed $1,748.44 211 370 023 Residential Developed $1,748.44 211 370 024 Residential Developed $1,748.44 211 370 025 Undeveloped Undeveloped $0.00 211 370 026 Undeveloped Undeveloped $0.00 211 370 027 Undeveloped Undeveloped $0.00 211 370 028 Undeveloped Undeveloped $0.00 7 of 9 Assessor's Type of Status of Taxable Special Parcel Number Property Development Acres Tax County of Contra Costa Community Facilities District No. 2001-1 (Norris Canyon) Special Tax Levy for Fiscal Year 2009-10 211 370 029 Residential Developed $1,748.44 211 370 030 Undeveloped Undeveloped $0.00 211 370 031 Undeveloped Undeveloped $0.00 211 370 032 Undeveloped Undeveloped $0.00 211 370 033 Undeveloped Undeveloped $0.00 211 370 034 Residential Developed $1,748.44 211 370 035 Residential Developed $1,748.44 211 370 036 Residential Developed $1,748.44 211 370 037 Residential Developed $1,748.44 211 370 038 Residential Developed $1,748.44 211 370 039 Residential Developed $1,748.44 211 370 040 Undeveloped Undeveloped $0.00 211 370 041 Residential Developed $1,748.44 211 370 042 Residential Developed $1,748.44 211 370 043 Residential Developed $1,748.44 211 370 044 Undeveloped Undeveloped $0.00 211 370 045 Residential Developed $1,748.44 211 370 046 Residential Developed $1,748.44 211 370 047 Residential Developed $1,748.44 211 370 048 Residential Developed $1,748.44 211 370 049 Residential Developed $1,748.44 211 370 050 Undeveloped Undeveloped $0.00 211 370 051 Residential Developed $1,748.44 211 370 052 Residential Developed $1,748.44 211 370 053 Residential Developed $1,748.44 211 370 054 Residential Developed $1,748.44 211 370 055 Residential Developed $1,748.44 211 370 056 Residential Developed $1,748.44 211 370 057 Residential Developed $1,748.44 211 370 058 Residential Developed $1,748.44 211 380 001 Undeveloped Undeveloped $0.00 211 380 002 Residential Developed $1,748.44 211 380 003 Undeveloped Undeveloped $0.00 211 380 004 Residential Developed $1,748.44 211 380 005 Residential Developed $1,748.44 211 380 006 Residential Developed $1,748.44 211 380 007 Residential Developed $1,748.44 211 380 008 Residential Developed $1,748.44 211 380 009 Residential Developed $1,748.44 211 380 010 Residential Developed $1,748.44 211 380 011 Residential Developed $1,748.44 211 380 012 Residential Developed $1,748.44 8 of 9 Assessor's Type of Status of Taxable Special Parcel Number Property Development Acres Tax County of Contra Costa Community Facilities District No. 2001-1 (Norris Canyon) Special Tax Levy for Fiscal Year 2009-10 211 380 013 Residential Developed $1,748.44 211 380 014 Residential Developed $1,748.44 211 380 015 Residential Developed $1,748.44 211 380 016 Residential Developed $1,748.44 211 380 017 Residential Developed $1,748.44 211 380 018 Undeveloped Undeveloped $0.00 211 380 019 Undeveloped Undeveloped $0.00 211 380 020 Undeveloped Undeveloped $0.00 211 380 021 Undeveloped Undeveloped $0.00 211 380 022 Residential Developed $1,748.44 211 380 023 Residential Developed $1,748.44 211 380 024 Undeveloped Undeveloped $0.00 211 380 025 Undeveloped Undeveloped $0.00 211 380 026 Undeveloped Undeveloped $0.00 211 380 027 Undeveloped Undeveloped $0.00 211 380 028 Undeveloped Undeveloped $0.00 211 380 029 Undeveloped Undeveloped $0.00 211 380 030 Undeveloped Undeveloped $0.00 211 380 031 Undeveloped Undeveloped $0.00 211 380 032 Undeveloped Undeveloped $0.00 211 380 033 Undeveloped Undeveloped $0.00 211 380 034 Undeveloped Undeveloped $0.00 211 380 035 Undeveloped Undeveloped $0.00 211 380 036 Undeveloped Undeveloped $0.00 211 380 037 Undeveloped Undeveloped $0.00 211 380 038 Undeveloped Undeveloped $0.00 211 380 039 Undeveloped Undeveloped $0.00 Total Special Tax Levy $447,600.64 /1 This parcel has prepaid its special tax obligation and is no longer subject to the special tax. Goodwin Consulting Group, Inc. 9 of 9 APPENDIX C Rate and Method of Apportionment of Special Tax County of Contra Costa CFD No. 2001-1 1 April 13, 2001 COUNTY OF CONTRA COSTA COMMUNITY FACILITIES DISTRICT NO. 2001-1 (NORRIS CANYON) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX A Special Tax applicable to each Assessor's Parcel in Community Facilities District No. 2001-1 (herein ACFD No. 2001-1@) shall be levied and collected according to the tax liability determined by the Board of Supervisors of the County of Contra Costa or its designee, as described below. All of the property in CFD No. 2001-1, unless exempted by law or by the provisions of Section G below, 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: AAcre 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. AAct@ means the Mello-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. AAdministrative Expenses@ means any or all of the following: the fees and expenses of any fiscal agent or trustee (including any fees and expenses of its counsel) employed in connection with any Bonds; any costs associated with the marketing or remarketing of the Bonds; the expenses of the Administrator and the County in carrying out their respective duties under any fiscal agent agreement, indenture or resolution with respect to the Bonds or CFD No. 2001-1, including, but not limited to, the levy and collection of the Special Tax, the fees and expenses of legal counsel, charges levied by the County or any division or office thereof in connection with the levy and collection of Special Taxes, audits, continuing disclosure or other amounts needed to pay arbitrage rebate to the federal government with respect to Bonds; costs associated with complying with continuing disclosure requirements; costs associated with responding to public inquiries regarding Special Tax levies and appeals; attorneys= fees and other costs associated with commencement or pursuit of foreclosure for delinquent Special Taxes; costs associated with overhead expense allocations to CFD No. 2001-1; and all other costs and expenses of the County, the Administrator, and any fiscal agent, escrow agent or trustee related to the administration of CFD No. 2001-1. AAdministrator@ shall mean the person or firm designated by the Board to administer the Special Tax according to this Rate and Method of Apportionment of Special Tax. County of Contra Costa CFD No. 2001-1 2 April 13, 2001 “Annual Interest Component@ means the total amount of interest on Bonds in the calendar year commencing in such Fiscal Year. AAssessor's Parcel@ or AParcel@ means a lot or parcel shown in an Assessor's Parcel Map with an assigned Assessor's Parcel number. AAssessor's Parcel Map@ means an official map of the County Assessor of the County of Contra Costa designating parcels by Assessor's Parcel Number. ABonds@ means any bonds or other debt (as defined in Section 53317(d) of the Act), whether in one or more series, issued by CFD No. 2001-1 under the Act. ABoard@ means the Board of Supervisors of the County of Contra Costa. ACapitalized Interest@ means funds in any capitalized interest account available to pay debt service on Bonds issued by CFD No. 2001-1. ACapitalized Interest Requirement@ means the least of: i) the Annual Interest Component, ii) the difference between the Special Tax Requirement and the amount determined pursuant to Step 1 of Section E hereof, or iii) the amount of Capitalized Interest available. ACounty@ means the County of Contra Costa. ADeveloped Property@ means Taxable Property for which a building permit for construction was issued prior to June 1 of the preceding Fiscal Year. AFiscal Year@ means the period starting July 1 and ending on the following June 30. AHomeowners= Association Property@ means any property within the boundaries of CFD No. 2001- 1 which is owned by a homeowners= or property owners= association. ALand Use Class@ means one of the defined land use categories for which a specific Maximum Special Tax is identified in Table 1 in Section C below. AMaximum Special Tax@ means the maximum amount of Special Tax, determined in accordance with Section C below, that can be levied in any Fiscal Year. AOther Property@ means Developed Property which is not Residential Property, Public Property, or Homeowners= Association Property. APlanned Units@ means the number of individual residential units that were expected to be constructed on property within CFD No. 2001-1 as shown in Attachment 1. AProportionately@ means, for Residential Property and Other Property, that the ratio of the actual Special Tax levied in any Fiscal Year to the Maximum Special Tax authorized to be levied in that County of Contra Costa CFD No. 2001-1 3 April 13, 2001 Fiscal Year is equal for all Assessor=s Parcels of Residential Property and Other Property. For Undeveloped Property, "Proportionately" means that the ratio of the actual Special Tax to the Maximum Special Tax is equal for all Assessor=s Parcels of Undeveloped Property. For Homeowners= Association Property and nonexempt Public Property, "Proportionately" means that the ratio of the actual Special Tax to the Maximum Special Tax is equal for all Assessor=s Parcels of Homeowners= Association Property and Public Property. APublic Property@ means any property within the boundaries of CFD No. 2001-1 that is owned by or irrevocably offered for dedication to the federal government, State of California or other local governments or public agencies. AResidential Property@ means, in any Fiscal Year, any Parcel of Developed Property for the construction of a residential structure which is not Homeowners= Association Property or Public Property. ASpecial Tax@ means a special tax levied in any Fiscal Year that will be used to pay the Special Tax Requirement, as defined below. ASpecial Tax Requirement@ means the total amount needed each Fiscal Year to (i) pay principal and interest on Bonds in the calender year commencing in such Fiscal Year, (ii) create or replenish reserve funds, (iii) cure any delinquencies in the payment of principal or interest on indebtedness of CFD No. 2001-1 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) pay Administrative Expenses. ATaxable Property@ means all of the Assessor's Parcels within the boundary of CFD No. 2001-1 which are not exempt from the Special Tax pursuant to law or Section G below. ATentative Map@ means the tentative map for Norris Canyon Estates approved by the Board in August 1997. AUndeveloped Property@ means any Parcel of Taxable Property within CFD No. 2001-1 for which a building permit has not been issued prior to June 1 of the preceding Fiscal Year. B. ASSIGNMENT TO LAND USE CLASS Each Fiscal Year, the Administrator shall categorize each parcel of property in CFD No. 2001-1 as Developed Property or Undeveloped Property, and Parcels of Developed Property shall be further identified as either Residential Property, Other Property, Homeowners= Association Property or Public Property. For each Parcel of Other Property within the CFD, the Administrator shall determine how many Planned Units had been expected on the Parcel in order to assign the Maximum Special Tax pursuant to Section C below. County of Contra Costa CFD No. 2001-1 4 April 13, 2001 C. MAXIMUM SPECIAL TAX Pursuant to Section 53321 (d) of the Act, a Maximum Special Tax must be established as a specific dollar amount before a Parcel is first subject to the tax when in private residential use. The following maximum rates shall apply to all Parcels of Taxable Property within CFD No. 2001-1 for each Fiscal Year in which the Special Tax is collected: TABLE 1 MAXIMUM SPECIAL TAX (Fiscal Year 2001-02) Land Use Class Description Maximum Special Tax (Fiscal Year 2001-02) 1 Residential Property $2,100 per Parcel 2 Other Property $2,100 per Planned Unit of the Parcel before it became Other Property 3 Undeveloped Property $3,360 per Acre Pursuant to Section 53321 (d) of the Act, the Special Tax levied against a Parcel used for private residential purposes shall under no circumstances increase more than ten percent (10%) as a consequence of delinquency or default by the owner of any other Parcel or Parcels and shall, in no event, exceed the Maximum Special Tax in effect for the Fiscal Year in which the Special Tax is being levied. D. MANDATORY PREPAYMENT OF SPECIAL TAX RESULTING FROM TENTATIVE MAP REVISIONS It is possible that a revision in the Tentative Map could result in less Special Tax revenue being available from the CFD. To preclude this result, after CFD No. 2001-1 has been formed, the County shall apply the following steps for every proposed Tentative Map revision: Step 1: The County or its designee shall calculate the Maximum Special Tax revenues that could be collected from the property affected by the proposed Tentative Map revision (the AAffected Property@) prior to the revision being approved; County of Contra Costa CFD No. 2001-1 5 April 13, 2001 Step 2: The County or its designee shall calculate the Maximum Special Tax revenues that could be collected from the Affected Property if the Tentative Map revision is approved; Step 3: If the amount determined in Step 2 is higher than that calculated in Step 1, the Tentative Map revision may be approved without prepayment of the Special Tax. If the revenues calculated in Step 2 are less than those calculated in Step 1, the County may not approve the Tentative Map revision unless the landowner requesting the Tentative Map revision prepays a portion of the Special Tax obligation that would have applied to the Affected Property prior to approval of the revision in an amount sufficient to retire a portion of the Bonds and maintain 110% coverage on the Bonds= debt service with the reduced Maximum Special Tax revenues that will result after the Tentative Map revision is approved. The required prepayment shall be calculated using the formula set forth in Section H below. Property owners wishing to prepay the Special Tax as a result of a Tentative Map revision cannot be delinquent on past Special Taxes on the Affected Property. E. METHOD OF LEVY AND COLLECTION OF THE SPECIAL TAX Commencing with Fiscal Year 2001-02 and for each following Fiscal Year, the Administrator shall determine the Special Tax Requirement for that Fiscal Year. The Special Tax shall then be levied as follows: Step 1: The Special Tax shall be levied Proportionately on each Parcel of Residential Property and Other Property up to 100% of the Maximum Special Tax up to the Special Tax Requirement for each Land Use Class for such Fiscal Year as determined pursuant to Section C. The Maximum Special Tax for a Parcel of Other Property shall be the total Maximum Special Taxes for the Planned Units that the Other Property replaced, as determined by the Administrator; Step 2: Determine the Capitalized Interest Requirement, if any, and add it to the amount levied under Step 1; Step 3: If the total of the Capitalized Interest Requirement and the amount levied under Step 1 is less than the Special Tax Requirement, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property within the CFD, up to 100% of the Maximum Special Tax for Undeveloped Property for such Fiscal Year determined pursuant to Section C; Step 4: If additional monies are needed after applying the first three steps, the Special Tax shall be levied Proportionately on each Parcel of Homeowners= Association Property and Public Property which originally had Planned Units, up to 100% of the Maximum Special Tax for Undeveloped Property for such Fiscal Year determined pursuant to Section C. County of Contra Costa CFD No. 2001-1 6 April 13, 2001 F. MANNER OF COLLECTION The Special Taxes for CFD No. 2001-1 shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that prepayments are permitted as set forth in Section H below (and may be required in the case of Tentative Map revisions) and provided further that the County may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner, and may collect delinquent Special Taxes through foreclosure or other available methods. The Special Tax shall be levied and collected until principal and interest on Bonds have been repaid and authorized facilities to be constructed directly from Special Taxes proceeds have been completed. However, in no event shall a Special Taxes be levied after Fiscal Year 2039-2040. G. EXEMPTIONS Notwithstanding any other provision of this Rate and Method of Apportionment of Special Tax, no Special Taxes shall be levied on Public Property, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act. H. PREPAYMENT OF SPECIAL TAX The following definitions apply to this Section H: "Future Facilities Costs" means the Public Facilities Requirements (as defined below) minus public facility costs funded by Previously Issued Bonds, interest earnings on the construction fund actually earned prior to the date of prepayment, Special Taxes, developer equity, and/or any other source of funding. "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 AOutstanding Bonds@ for purposes of this prepayment formula. "Previously Issued Bonds" means all Bonds that have been issued by CFD No. 2001-1 prior to the date of prepayment. "Public Facilities Requirements" means either $5,900,000 in 2001 dollars, which shall increase by three percent (3%) on January 1, 2002, and on each January 1 thereafter, or such lower number as shall be determined by the County as sufficient to fund public facilities to be provided by CFD No. 2001-1 under the authorized bonding program for CFD No. 2001-1. County of Contra Costa CFD No. 2001-1 7 April 13, 2001 The Special Tax obligation applicable to an Assessor's Parcel in CFD No. 2001-1 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 County with written notice of intent to prepay. Within 30 days of receipt of such written notice, the County shall notify such owner of the prepayment amount of such Assessor's Parcel. Prepayment must be made not less than 75 days prior to any interest payment 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 Future Facilities Amount plus Redemption Premium plus Defeasance plus Administrative Fees and Expenses less 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 County. Step 2: Divide the Maximum Special Tax computed pursuant to Step 1 for such Assessor=s Parcel by the lesser of (i) the Maximum Special Tax revenues that could be collected in that Fiscal Year from property in the entire CFD, or (ii) the Maximum Special Tax revenues that could be generated at buildout of property in the CFD based on anticipated land uses at the time the prepayment is calculated. Step 3: 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 ABond Redemption Amount@). Step 4: Compute the current Future Facilities Costs. Step 5: Multiply the quotient computed pursuant to Step 2 by the amount determined pursuant to Step 4 to compute the amount of Future Facilities Costs to be prepaid (the AFuture Facilities Amount@). County of Contra Costa CFD No. 2001-1 8 April 13, 2001 Step 6: 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 ARedemption Premium@). Step 7: Compute the amount needed to pay interest on the Bond Redemption Amount starting with the first Bond interest payment date after which the prepayment has been received until the earliest redemption date for the Outstanding Bonds. However, if Bonds are callable at the first interest payment date after the prepayment has been received, Steps 7, 8 and 9 of this prepayment formula will not apply. Step 8: Compute the amount of interest the County reasonably expects to derive from reinvestment of the Bond Redemption Amount plus the Redemption Premium from the first Bond interest payment date after which the prepayment has been received until the redemption date for the Outstanding Bonds. Step 9: Take the amount computed pursuant to Step 7 and subtract the amount computed pursuant to Step 8 (the ADefeasance@). Step 10: The administrative fees and expenses of CFD No. 2001-1 are as calculated by the County 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 AAdministrative Fees and Expenses@). Step 11: A reserve fund credit shall be calculated as the reduction, if any, in the applicable reserve fund for the Outstanding Bonds to be redeemed pursuant to the prepayment (the AReserve 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 11 (the APrepayment Amount@). APPENDIX D Boundary Map of Community Facilities District No. 2001-1 APPENDIX E Assessor’s Parcel Maps for Fiscal Year 2009-10