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HomeMy WebLinkAbout2014-068 RESOLUTION NO 2014-68 1 2 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE 3 CITY OF SAN BERNARDINO AUTHORIZING THE ANNEXATION OF 4 TERRITORY GENERALLY LOCATED ON THE SOUTHWESTERLY SIDE OF CAJON BOULEVARD, KNOWN AS 6207 N. CAJON BOULEVARD (ANNEXATION 5 NO. 8) TO COMMUNITY FACILITIES DISTRICT NO. 1033 AND AUTHORIZING THE LEVY OF A SPECIAL TAX AND SUBMITTING THE LEVY OF TAX TO THE 6 QUALIFIED ELECTORS. 7 WHEREAS, the City of San Bernardino, California (the "City"), is a municipal 8 corporation and charter city, duly organized and existing pursuant to the provisions of the 9 Constitution of the State of California; and, 10 WHEREAS, the Mayor and Common Council of the City, on January 21, 2014, 11 adopted Resolution No. 2014-19 (hereafter referred to as the "Resolution of Intention") stating 12 its intention to annex territory to City of San Bernardino Community Facilities District No. 13 1033 (hereafter referred to as "CFD No. 1033"), pursuant to the Mello-Roos Community 14 Facilities Act of 1982, as amended (hereafter referred to as the "Act"); and, 15 WHEREAS, a copy of the Resolution of Intention, which states the authorized 16 facilities and services to be provided and financed by CFD No. 1033, and a description and 17 map of the proposed boundaries of the territory to be annexed to CFD No. 1033 ("Annexation 18 19 No. 8"), is on file with the City Clerk and is incorporated herein by this reference; and, 20 WHEREAS, on the 17th of March, 2014, the Mayor and Common Council held a 21 noticed public hearing as required by the Act and the Resolution of Intention relative to the 22 proposed annexation of territory to CFD No. 1033; and, 23 WHEREAS, at said hearing all interested persons desiring to be heard on all matters 24 pertaining to the annexation of territory to CFD No. 1033 and the levy of said special taxes 25 within the area proposed to be annexed were heard and a full and fair hearing was held; and, 26 WHEREAS, prior to the time fixed for said hearing, written protests had not been 27 filed against the proposed annexation of territory to CFD No. 1033 by (i) 50% or more of the 28 registered voters, or six registered voters, whichever is more, residing in CFD No. 1033, or 1 2014-68 1 (ii) 50% or more of the registered voters, or six registered voters, whichever is more, residing 2 in the territory proposed to be annexed to CFD No. 1033, or (iii) owners of one-half or more 3 of the area of land in the territory included in CFD No. 1033, or (iv) owners of one-half or 4 more of the area of land in the territory proposed to be annexed to CFD No. 1033; and, 5 WHEREAS, a boundary map for Annexation No. 8 to CFD No. 1033 has been filed 6 with the County Recorder of the County of San Bernardino, which map shows the territory to 7 be annexed in these proceedings, and a copy thereof is on file with the City Clerk. 8 NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY 9 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, 10 AS FOLLOWS: 11 SECTION 1. Recitals. The above recitals are all true and correct and are hereby 12 incorporated herein. 13 SECTION 2. Authorization. All prior proceedings taken by the Mayor and Common 14 Council with respect to CFD No. 1033 and the proposed annexation of territory thereto have 15 16 been duly considered and are hereby determined to be valid and in conformity with the Act. 17 SECTION 3. Boundaries. The description and map of the boundaries of the territory 18 to be annexed to CFD No. 1033, on file with the City Clerk are hereby approved, are 19 incorporated herein by reference, and shall be included within the boundaries of CFD No. 20 1033, and said territory is hereby annexed to CFD No. 1033, subject to voter approval of the 21 levy of the special taxes therein as hereinafter provided. 22 23 SECTION 4. Facilities and Services. The facilities and services which CFD No. 24 1033 is authorized to finance are in addition to those provided in or required for the territory 25 within CFD No. 1033 and the territory to be annexed to CFD No. 1033 and will not be 26 replacing services already available. A general description of the facilities and services to be 27 financed is as follows: 28 2 2014-68 1 The continued operation and maintenance of the Verdemont Fire Station, including but not limited to payment of compensation of employees, including salary and benefits, 2 maintenance and operation of fire safety vehicles and the fire station structures, any other expenses required to keep such equipment and improvements in fit operating 3 condition and any incidental expenses (collectively, the "O&M Expenses"), and all 4 necessary administrative expenses of the City. The descriptions contained herein are general in nature and do not necessarily include all related and appurtenant costs and 5 expenses necessary for the proposed facilities and services. 6 SECTION 5. Special Taxes. It is the intention of this legislative body that, except 7 8 where funds are otherwise available, a special tax sufficient to pay for said facilities and 9 services to be provided in CFD No. 1033 and the territory proposed to be annexed as part of 10 Annexation No. 8, secured by recordation of a continuing lien against all non-exempt real 11 property in Annexation No. 8, will be levied annually within the boundaries of Annexation 12 No. 8 from and after the annexation of such property to CFD No. 1033. The special taxes 13 14 shall be those as originally authorized through the formation of CFD No. 1033 and adopted by is Ordinance of this legislative body, and no changes or modifications are proposed in the 16 special taxes from those as originally set forth and made applicable to CFD No. 1033. 17 For particulars as to the rate and method of apportionment of the proposed special tax 18 (the "RMA"), reference is made to the attached and incorporated Exhibit"A," which sets forth 19 in sufficient detail the method of apportionment to allow each landowner or resident within 20 21 the Annexation No. 8 to clearly estimate the maximum annual amount that said person will 22 have to pay on said special tax. 23 SECTION 6 Election. The provisions of the Resolution of Intention as heretofore 24 adopted by the Mayor and Common Council are by this reference incorporated herein. 25 26 (a) Pursuant to the provisions of the Act, the proposition of the levy 27 of the special tax within Annexation No. 8 shall be submitted to the voters within Annexation No. 8 at an election called therefore as 28 hereinafter provided. The Mayor and Common Council hereby finds 3 2014-68 1 that fewer than 12 persons have been registered to vote within Annexation No. 8 for each of the 90 days preceding the close of the 2 hearing heretofore conducted and concluded by the Mayor and Common Council for the purposes of these annexation proceedings. 3 Accordingly, and pursuant to Section 53326 of the Act, the Mayor and 4 Common Council finds that for purposes of these proceedings the qualified electors are the landowners within Annexation No. 8 and that 5 the vote shall be by said landowners, each having one vote for each acre or portion thereof that said landowner owns in Annexation No. 8. 6 7 (b) Pursuant to Section 53326 of the Act, the election shall be conducted by mail ballot under section 1340 of the California Elections 8 Code. The Mayor and Common Council called a special election to consider the measures described and incorporated as Exhibit `B," 9 which election shall be held on March 17, 2014 (hereafter referred to as 10 "Election Day"). The City Clerk was the election official to conduct the election and provided each landowner in the territory to be annexed to 11 CFD No. 1033, a ballot in the form of Exhibit "B", which form is hereby approved. The City Clerk has accepted the ballots of the 12 qualified electors received prior to 4:00 o'clock p.m. on Election Day, whether received by mail or by personal delivery. 13 14 The Mayor and Common Council hereby further finds that the provision of Section 53326 of the Act requiring a minimum of 90 days 15 to elapse before said election is for the protection of voters, that the voters have waived such requirement and the date for the election 16 hereinabove specified is established accordingly. 17 in 18 /// 19 20 /// 21 22 23 24 25 26 27 28 4 2014-68 1 2 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE ANNEXATION OF TERRITORY GENERALLY LOCATED ON 3 THE SOUTHWESTERLY SIDE OF CAJON BOULEVARD, KNOWN AS 6207 N. CAJON BOULEVARD (ANNEXATION NO. 8) TO COMMUNITY FACILITIES DISTRICT NO. 1033 AND 4 AUTHORIZING THE LEVY OF A SPECIAL TAX AND SUBMITTING THE LEVY OF TAX TO THE QUALIFIED ELECTORS. 5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor 6 7 and Common Council of the City of San Bernardino at a joint rPg,il ar meeting 8 thereof held on the 17th day of March , 2014, by the following vote, to-wit: 9 10 Council Members: AYES NAYS ABSTAIN ABSENT 11 MARQUEZ x 12 BARRIOS x 13 VALDIVIA x 14 SHORETT x 15 NICKEL x 16 17 JOHNSON x 18 MULVIHILL x 19 20 Georgea 1 Hanna, Clerk 21 The foregoing resolution is hereby approved this / day of March , 2014. 22 23 24 R. CAREY D IS, Mayor City of San Bernardino 25 26 Approved as to form: GARY D. SAENZ, 27 City Attorney 28 B ,% , 5 2014-68 1 2 EXHIBIT "A" 3 4 CFD 1033 5 RATE AND METHOD OF APPORTIONMENT 6 (RMA) 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 6 2014-68 1 RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX COMMUNITY FACILITIES DISTRICT NO. 1033 2 CITY OF SAN BERNARDINO 3 4 This Rate and Method of Apportionment of this Special Tax sets forth the special tax applicable to each Assessor's Parcel within Community Facilities District No. 1033 ("CFD 5 No. 1033") of the City of San Bernardino ("City") to be levied and collected according to the special tax liability determined by the Mayor and Common Council of the City, acting as 6 the Legislative Body of CFD No. 1033. The applicable Special Tax shall be determined 7 pursuant to the application of the appropriate amount or rate as described below. All Taxable Property within CFD No. 1033, unless exempted by law, or the provisions of 8 Section E, below, shall be subject to the applicable Special Tax levied and collected to the 9 extent and in the manner herein provided. 10 This Rate and Method of Apportionment also is provided as an explanation to allow landowners or residents within CFD No. 1033 to estimate the Special Tax to be annually 11 levied and collected, or prepaid, as the case may be, with regard to property within CFD 12 No. 1033. 13 A. Definitions 14 "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being 15 Chapter 2.5 (commencing with Section 53311) of Division 2 of Title 5 of the California Government Code. 16 17 "Administrative Expense" means any costs incurred by the City on behalf of CFD No. 1033 related to the determination of the amount of the annual levy of the Special 18 Tax, the collection of the Special Tax, and the other costs incurred in order to carry out the authorized purposes of CFD No. 1033. 19 20 "Special Tax" means the special tax to be levied in each Fiscal Year pursuant to Sections C. and D. on each Assessor's Parcel for a period not to exceed 30 years 21 including the Initial Fiscal Year. 22 "Assessor's Parcel" means a parcel of land as designated on an official map of the 23 San Bernardino County Assessor which has been assigned a discrete identifying parcel number. 24 25 "Commercial/Retail/Office/Industrial Property" means property zoned for commercial, retail, office or industrial uses or other non-residential uses. 26 27 "Common Council" or "Council" means the Mayor and Common Council of the City of San Bernardino. 28 7 2014-68 1 "Residential Property" means for any Fiscal year all Taxable Property for which a foundation building permit for single family or multi-family units was issued prior to 2 May 1 preceding the Fiscal Year in which the Special Tax is being levied. 3 "Facilities" means the Fire Station Services as may be identified in the Community 4 Facilities District Engineer's Report prepared for CFD No. 1033 on file in the Office of the City Clerk, or the continued operation and maintenance of the Verdemont Fire 5 Station, including but not limited to payment of compensation of employees, 6 including salaries and benefits, maintenance and operation of fire safety vehicles and the fire station structures, any other expenses required to keep the such equipment 7 and improvements in fit operating condition and any incidental expenses (collectively, the "O&M Expenses") to be financed by CFD No. 1033 pursuant to 8 the Act. 9 "Fiscal Year" means the period starting on July 1st and ending the following June 10 30th. 11 "In-Lieu Fee" means a one-time fee, which fee shall be deposited into an interest 12 bearing reserve account for future O&M Expenses in the following amounts and for which a further explanation of the In-Lieu Fee will be described in an estimated cost 13 report: 14 Residential Zone $6,349.88 per residential dwelling unit as an In- 15 Lieu Fee 16 Commercial, Retail, Office Zone $44,358.47 per acre of development as set forth 17 on a site plan of development as an In-Lieu Fee 18 Industrial Zone $44,358.47 per acre of development as set forth 19 on a site plan of development as an In-Lieu Fee 20 "Land Use Class" means any of the classes of Property listed in Table 1 and Table 2, below. 21 22 "Project" means any project undertaken for the purpose of development involving the approval or issuance of any permit or entitlement for use by any governmental 23 agency and includes all such permits and entitlements for use whether classified as 24 quasi-legislative, quasi-judicial or ministerial in nature, including, but not limited to, the adoption, amendment, approval or issuance of any general plan, specific plan, 25 master plan, zoning ordinance, tentative subdivision map, tentative parcel map, final subdivision map, final parcel map, variance, conditional use permit, site plan, plot 26 plan, development plan, annexation, public utility connection, building permit and 27 certificate of occupancy. 28 8 2014-68 1 "Taxable Property" means all Assessor's Parcels within the boundaries of CFD No. 1033 which are not exempt from the Special Tax pursuant to the Act and the 2 provisions of Section E. herein. 3 B. Assignment to Land Use Classes 4 As soon as practicable, as of May 1 for the next succeeding Fiscal Year, all Taxable 5 Property within CFD No. 1033 shall be categorized as Residential Property or either 6 Commercial/Retail/Office/Industrial Zone Property. Taxable Property shall be subject to a Special Tax pursuant to Sections C. and D. below. 7 8 C. Special Tax 9 1. Residential Property 10 11 The Special Tax for each Assessor's Parcel classified as Residential Property shall be the amount determined by reference to Table 1 and the paragraphs 12 that follow Table 1. Table 1 13 Special Tax Rates for Residential Property 14 (For the Initial Fiscal Year 2004-05) Special 15 Land Use Class Land Use Description Tax Per Unit (2004-05) 16 1 Single Family Detached Unit $350.00 17 2 Multi-Family Unit/Attached Dwelling Unit $350.00 18 In determining the Special Tax which may be levied in any Fiscal Year, on July 1, 2005, 19 and on each July 1 thereafter, the Special Tax shall be increased by an amount not to exceed 2 % of the amount in effect for the previous Fiscal Year, up to the Fiscal Year commencing 20 July 1, 2033. The Special Tax shall terminate as to such Assessor's Parcel at the close of the thirtieth (30th) Fiscal Year following the beginning of the Initial Fiscal Year 2004-2005, 21 i.e., the Special Tax shall terminate as of June 30, 2034. 22 2. Commercial/Retail/Office/Industrial Zone Property 23 24 The Special Tax for each Assessor's Parcel classified as either Commercial, Retail, Office, or Industrial Zone Property shall be the amount determined by 25 reference to Table 2 and the paragraphs that follow Table 2. 26 27 28 9 2014-68 1 Table 2 Special Tax Rates for Commercial/Retail/Office/Industrial Zone Property 2 (For the Initial Fiscal Year 2004-05) Special 3 Land Use Class Land Use Description Tax Per Acre (2004-05) 4 3 Commercial $2,445.00 5 4 Retail $2,445.00 5 Office $2,445.00 6 6 Industrial $2,445.00 7 In determining the Special Tax which may be levied in any Fiscal Year, on July 1, 2005, 8 and on each July 1 thereafter, the Special Tax shall be increased by an amount not to exceed 9 2 % of the amount in effect for the previous Fiscal Year, up to the Fiscal Year commencing July 1, 2033. The Special Tax shall terminate as to such Assessor's Parcel at the close of 10 the thirtieth (30th) Fiscal Year following the beginning of the Initial Fiscal Year 2004-2005, i.e., the Special Tax shall terminate as of June 30, 2034. 11 12 D. Method of Apportionment of the Special Tax 13 14 Commencing with Fiscal year 2004-05, and each Fiscal Year thereafter, the Council shall determine the Special Tax to be collected from Taxable Property in CFD No. 15 1033. The Council may levy the Special Tax on all Assessor's Parcels of Development Property by levying the Special Tax for Land Use Classes 1, 2, 3, 4, 5 16 and 6. 17 18 E. Limitations 19 The Council shall not levy a Special Tax on properties owned by the State of 20 California, federal or other local governments, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act. Property which becomes the property of 21 the State of California, the federal government or other public agency is liable for 22 the Special Tax levied in the Fiscal Year during which such transfer occurs and will be subject to the Special Tax in each Fiscal Year thereafter under the original Land 23 Use Class for such Assessor's Parcel. Such Assessor's Parcel may be exempted, at the direction, and in the discretion, of the Council in any Fiscal Year. 24 25 F. Prepayment of the Special Tax 26 27 Any owner of property within CFD No. 1033 may discharge the Special Tax obligation in full or in part, by making payment pursuant to the applicable Sections 28 F. 1. or F. 2 as follows: 10 2014-68 1 1. Upon the Approval of a Tentative or Parcel Map 2 At the time of approval of a tentative or parcel map, the owner of such 3 residential unit may prepay the Special Tax in full or in part by making a 4 cash payment to CFD No. 1033, in which case the Special Tax for the Initial Fiscal Year, and each Fiscal Year thereafter, shall be reduced according to 5 the following steps: 6 a. Determine the maximum prepayment if the owner were to prepay the 7 Special Tax in entirety. For example, for Projects approved prior to July 1, 2005, the maximum prepayment for each residential unit is 8 $6,439.88 and for each acre of development as set forth on a site plan 9 of development for Commercial/Retail/Office or Industrial zone property is $44,358.47. 10 11 b. Determine the property's revised Special Tax by multiplying the property's applicable Special Tax for the Initial Fiscal Year 12 determined pursuant to Section C. 1. by one minus the quotient obtained by dividing the cash payment made by the owner pursuant to 13 this Section F. 1 .b. by the maximum prepayment obligation 14 determined pursuant to Section F. 1 .a. The property's revised Special Tax for the Initial Fiscal Year, and each Fiscal Year thereafter, shall 15 be the Special Tax for the applicable land use designation (Residential 16 or Commercial/Retail/Office/Industrial zone Property) for purposes of Sections C. and D. herein. 17 2. After the Approval of the Tentative Map/Parcel Map 18 19 After the time a tentative or parcel map has been approved, and prior to May 1 for the next succeeding Fiscal Year, the owner of such parcel may prepay 20 the Special Tax in full or in part by making a cash payment to CFD No. 1033, in which case the Special Tax for the applicable Fiscal Year, and each 21 Fiscal Year thereafter, shall be reduced according to the following steps: 22 a. Compute the present value of the Special Tax using a period equal to 23 the lesser of the remaining term for which the Special Tax may be 24 levied on such parcel; then 25 b. Multiply the amount determined in Section F.2.a; above, by the owner's desired prepayment percentage (which shall be a minimum of 26 twenty percent (20%) of the present value of the total Special Tax) to 27 determine the prepayment amount subject to additional adjustments as specified below; then 28 11 2014-68 1 c. Add the following to the result of Section F.2.b.: 2 i) Unpaid special taxes, interest and penalties, if any, which have been entered on the Assessor's tax roll; and 3 4 ii) a $75 administrative charge per Assessor Parcel. 5 d. The Special Tax applicable to property utilizing a prepayment 6 percentage less than 100% shall be revised in the Fiscal Year following the date of prepayment by multiplying such property's 7 Special Tax by the prepayment percentage actually determined in Section F.2.b. Such property's revised Special Tax for the Fiscal Year 8 following the date of prepayment, and each Fiscal Year thereafter, 9 shall be the Special Tax for such property for purposes of Sections C. and D. herein. 10 11 In no event shall the In-Lieu Fee be increased by more than 2% per year nor shall the Tax be increased by more than 2% per year, based upon a cost inflation formula to be 12 continued in the Estimated Cost Report and the Engineer's Report and made a part of the formation documents for the District, from the previous year for any property located within 13 the District that was previously assessed and charged with the Tax in the immediately 14 preceding year. The Special Tax and the In-Lieu Fee shall be recalculated annually to reflect (i) any changes in the O&M Expenses, (ii) the annexation of additional property into 15 the District, (iii) the payment of the O&M Expenses, or any portion thereof, with funds other than the Tax, (iv) the amount of In-Lieu Fees available to be applied for the applicable 16 for which the calculation is being made, and (v) any other changes which may affect the 17 estimated O&M Expenses for such year. 18 G. Manner of Collection 19 The Special Tax will be collected in the same manner and at the same time as 20 ordinary ad valorem real property taxes. The Special Tax shall be subject to the same penalties and the same procedure, sale and lien priority in case of a 21 delinquency as provided for with ad valorem taxes. The collection of the Special Tax 22 shall otherwise be subject to the provisions of the Act. The Common Council reserves the power to provide for alternative means of collection of special taxes as 23 permitted by the Act. 24 H. Termination of Special Tax Levy 25 Provided that Special Taxes previously levied on an Assessor's Parcel are not 26 delinquent, the lien of special taxes of CFD No. 1033 shall terminate as to such 27 Assessor's Parcel at the close of the thirtieth (30) Fiscal Year following the beginning of the Initial Fiscal Year for such Assessor's Parcel. Furthermore, 28 provided an owner within CFD No. 1033 fully and completely discharges their 12 2014-68 1 special tax obligation pursuant to Sections F.1 and/or F.2, the lien of special taxes of CFD No. 1033 shall terminate. 2 Pursuant to Section 53330.5 of the Act, the Common Council shall, upon written 3 request, cause to be recorded in the official records of San Bernardino County a 4 Notice of Cessation of Special Tax Lien for each Assessor's Parcel upon termination of the lien on such Assessor's Parcel. 5 6 I. Review/Appeal Board 7 The Council shall establish, as part of the proceedings and administration of CFD 8 No. 1033, a special Review/Appeal Board. Any landowner who feels that the 9 amount of the Special Tax, as to their Assessor's Parcel, is in error may file a notice with the Review/Appeal Board appealing the amount of the levy. The 10 Review/Appeal Board shall interpret this Rate and Method of Apportionment of the 11 Special Tax and make determinations relative to the annual administration of the special tax and any landowner appeals, as herein specified. 12 13 / / / 14 / / / 15 16 17 18 19 20 21 22 23 24 25 26 27 28 13 2014-68 1 EXHIBIT "B" 2 4 6 OFFICIAL BALLOT SPECIAL ELECTION 7 City of San Bernardino Community Facilities District No. 1033 Annexation No. 8 8 9 This ballot is for a special landowner election. You must return this ballot in the enclosed Identification Envelope to the office of the City Clerk of the City of San Bernardino no later than 3:00 10 p.m. on March 17, 2014, by mail or in person; or in person to the location of the public hearing no later than 4:00 p.m. on March 17, 2014. The City Clerk's office is located at 300 N. "D" Street, 2nd Floor, San 11 Bernardino, California, 92418. The public hearing will be held at the City Council Chambers, 300 N. "D" Street,San Bernardino,California. 12 This ballot represents 1 vote(s). 13 To vote, mark a cross (X) in the voting square after the word "YES" or after the word 14 "NO". All marks otherwise made are forbidden and make the ballot void. 15 If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of San 16 Bernardino to obtain a replacement ballot. 17 PROPOSITION A: Shall special taxes with a rate and method of 18 apportionment as set forth in Exhibit "A" to the resolution entitled "A Resolution of the Mayor and Common Council of the City of San Bernardino, 19 California, Authorizing the Annexation of Territory Generally Located on the Southwesterly Side of Cajon Boulevard, Known as 6207 N. Cajon Boulevard Yes 20 (Annexation No. 8) to Community Facilities District No. 1033 and Authorizing the Levy of a Special Tax and Submitting the Levy of Tax to the Qualified 21 Electors." (the "Resolution of Annexation") be levied on taxable property within No City of San Bernardino Community Facilities District No. 1033, Annexation No. 22 8, to pay for the continued operation and maintenance of the Verdemont Fire Station,and incidental expenses thereto? 23 24 PROPOSITION B: Shall the City of San Bernardino on behalf of City of San Bernardino Community Facilities District No. 1033, Annexation No. 8 25 ("Annexation No. 8") establish an annual appropriations limit for Annexation Yes No. 8, as defined by subdivision (h) of Section 8 of Article XIIIB of the 26 California Constitution,in the amount of$500,000? No 27 28 14