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HomeMy WebLinkAbout22- Auburn Ridge MELLO-ROOS SPECIAL TAX DISCLOSURE TO THE HOMEOWNER AND SPECIAL ASSESSMENT DISCLOSURE TO THE HOMEOWNER AUBURN RIDGE Mello-Roos Financing Information The following information is being provided to all prospective homebuyers in the Auburn Ridge project to inform you that the property you intend to purchase is located within a Mello-Roos Community Facilities District . This means that a Mello-Roos Special Tax lien has been placed on this property, and that as a homebuyer in this development , you will be responsible for paying Special Taxes which are in addition to the standard property taxes . Information summarizing the specific tax liabilities associated with this Community Facilities District , plus the facilities to be financed, is presented in this brochure. Background A Community Facilities District (CFD No. 995 ) has been established in the Verdemont area , encompassing this project , pursuant to the Mello-Roos Community Facilities Act of 1982. This Act was passed by the California Legislature in response to public funding limitations imposed by Proposition 13, in order to provide an alternative method to finance the construction of essential public facilities in a timely fashion . A CFD may issue and sell bonds to provide funds to acquire or construct public capital facilities or to pay fees that will be used to acquire or construct public capital facilities . These bonds qualify for tax exempt status , thereby providing a lower interest rate than conventional , taxable financing methods . Financing and Facilities It is anticipated that CFD No. 995 will issue bonds with a 25-year term. These bonds are secured by all property within CFD No. 995 and will be repaid by the levy of a Special Tax on this property. This Special Tax will be levied beginning in the 1991-92 tax year and will be collected semi-annually at the same time and in the same manner as standard property taxes. The fees that will be financed by the levy of this Special Tax will be used to construct public improvements which may include, but are not limited to, those listed below in Table 1 . Revised 4/15/91 Q TABLE 1 Public Facilities To Be Financed By Fees To Be Financed Through CFD No. 995 1 . Purchase of Right-of-Way and construction of roadway improvements to include Palm, Walnut , Olive and Magnolia Avenues , Little League Drive, Meyers Road , Irvington , Belmont , Ohio and Verdemont Avenues , Frontage Road and Cable Canyon Road. 2 . Construction of School Facilities In the event there are surplus funds , then those funds could be put to the construction of the following : 1 . Construction of a Fire Station 2 . Construction of Park Facilities and Landscape Improvements 3. Construction of Drainage Facilities Mello-Roos Special Taxes As mentioned above , CFD No . 995 will issue tax exempt bonds to be repaid by the levy of a Special Tax on each residential unit and commercial/industrial acre within the CFD. Table 2 outlines the maximum annual Mello-Roos Special Tax that can be levied against the property you intend to purchase in addition to the standard property taxes . Q TABLE 2 Maximum Mello-Roos Special Taxes On Property in CFD No. 995 Per Unit (Single Family Detached Homes) Special Projected Tax* Tax ' Class Land Use Footage ' 91- ' 92 ' 91- ' 92 Encumbrances 1 Single More than $1 , 315/ $1 , 095/ $12 , 417 . 13 Family 2 , 199 SF unit unit Detached 2 Single 1 , 800 to $1 , 196/ $ 995/ $11 , 288. 30 Family 2 , 199 SF unit** unit Detached * On July 1 , 1992 and on each July 1 thereafter, the Assigned Special Tax for each class set forth above, and the Backup Special Tax as set forth below, will be increased by an amount equal to 1 .0% of the amount in effect for the previous Fiscal Year . The maximum special tax shown above is based upon the revised Rate and Method of Apportionment of Special Tax ( "Rate and Method" ) submitted to the City Council for approval . ** Special Taxes may exceed the Assigned Special Tax for some Assessor ' s Parcels within each class if the total number of homes or the sizes of homes built within Auburn Ridge fall significantly below currently projected levels . Under such circumstances , the Special Taxes listed above would be replaced by a 1991-92 Backup Special Tax of $0 .1566 per square foot of lot space . *** Total projected encumbrance is the principal proportion of the total projected bond issue that is attributable to each lot in each class . a Landscape Maintenance District ( Applicable To Lots Within Tract 13530 Only) Landscape Maintenance District No. 991 ( "LMD" ) has been established to provide for the watering and maintenance of landscape improvements within the boundaries of the LMD including the public right-of-way adjacent to the Auburn Ridge Project and upon certain slope areas within the Auburn Ridge Project . The LMD will levy a special assessment beginning in the 1990-91 tax year , which will be collected semi-annually at the same time and in the same manner as standard property taxes . The estimated amount of the annual special assessment is approximately $40.00 per year. Chestnut Channel Assessment District The City of San Bernardino has proposed the establishment of the Chestnut Channel Assessment District the "CCAD" ) to provide funds for the construction and maintenance of the Chestnut Channel regional drainage facilities between Irvington Avenue and Belmont Avenue . The CCAD, if formed , will levy a special assessment which will be collected semi-annually at the same time and in the same manner as standard property taxes . The estimated amount of the annual special assessment is $80.00 per year. Palm Avenue Traffic Signal and Boa Culvert Assessment District The City of San Bernardino has proposed the establishment of the Palm Avenue Traffic Signal and Box Culvert Assessment District ( the "PAAD" ) to provide funds for the construction of a traffic signal at the intersection of Palm Avenue and Kendall Drive and the construction of a box culvert as part of storm drain improvements underneath Palm Avenue just north of Kendall Drive . The assessment would also provide funds for the maintenance of those improvements . The PAAD, if formed , will levy a special assessment which will be collected semi-annually at the same time and in the same manner as standard property taxes . The estimated amount of the annual special tax is $30.00 per year . s t t 41 S S `tip t2 /I�ti. C I T Y O F y an bernardino O F F I C E O F T H E C I T Y A 0 M I N I S T R A T 0 R S H A U N A C L A R K C I T Y A D M I N I S T R A T O R October 21, 1993 Mr. Brad Weekley 3205 West Hyatt Road San Bernardino, CA 92407 Dear Mr. Weekley: Your letter of October 18 , 1993 , regarding an increase in Assessment CFD 995, Area B, has just been received in this office. You have asked to have your letter placed on the Council agenda for November 1, 1993 , and as it was received in time, it will be placed on that agenda. The Council meeting starts at 9 : 00 a.m. The October 18 , 1993 , letter also requests a written response to four questions. The following are your questions and the responses. Q1. The legal authority employed by the City to raise the CFD tax levy. A. CFD 995 is a Mello-Roos district. Legal authority for Mello-Roos districts resides within state law. Per state law, the City held hearings and adopted resolutions creating this district. Legal authority for the increase was given at the establishment of the assessment district and more specifically in Resolution of Intention 90-247 and companion reports and exhibits, as well as in Resolution 91-336, amending the report and subsequent resolutions; for example, resolutions authorizing issuance of bonds. The district was initially established pursuant to petitions submitted by property owners, in this case the developers. Once established, any subsequent sale or transfer of any properties is subject to the terms and special assessments of the established district. PRIDE 44 IN 3 0 0 N O R T H D S T R E E T S A N B E R N A R O t N 0 PROGRESS. C A L I F 0 R N I A 9 2 4 1 8 - 0 0 0 1 7 1 4 1 3 8 4 . 3 1 2 2 14 Letter to Brad Weekley 10/21/93 Page 2 ' Q2 . Why I was not provided with a written notification at the time I purchased said property which would specify that such a tremendous increase could occur between two tax periods. A. Attached is a copy of a document signed by yourself and Theresa Stolworthy at the time you purchased your home, 5/25/91, acknowledging that you have read and understand that a special tax will be collected with regular property taxes to finance public facilities. The document you signed also included the following "I understand that I may be responsible for the corresponding maximum special tax." State law requires all developers within the district to submit disclosure statements signed by property owners as the properties sell. The disclosure statement did not in any way guarantee a fixed tax rate. It did refer further inquiries to the City of San Bernardino where a buyer or prospective buyer could get more detailed information. Q3 . Why the City is requiring the additional funds and how this fund will be utilized. Further, what, if any, tangible benefits will I as a property owner receive from this outrageous increase in taxes? A. The additional increase this year is caused by a high delinquency in the district. Since the city has the obligation to meet debt service for the bonds, a special backup tax formula was used. Details of the specific formula were given in the aforementioned report and amended report approved at the formation of the district. To solve the problem of the delinquency and to work toward reducing the cost to homeowners in the district, the city has begun foreclosure proceedings on all delinquent properties. upon successful foreclosure and sale of such properties, the delinquent amounts will be credited back to the district to replenish the reserve which will in turn reduce the future taxes. There will also be a bond redemption in the amount of $1. 6 million on November 1, 1993, which will help to further reduce the future special tax. Q4 . What other taxes does the City of San Bernardino plan to implement against properties within CFD 995/Area B that have not be disclosed to property owners within that area. Letter to Brad Weekley 10/21/93 Page 3 A. No taxes have been implemented in this district without the knowledge of property owners because as stated in the answer to your second question, all property owners were notified of the existence of this district prior to or at the time of purchase. However, it is impossible at this time to determine the total number of delinquencies that may occur within the district from year to year. The backup tax will be used in any given year where prior years collections were insufficient to meet certain debt payment and reserve level requirements as set forth in the bond covenants. I sincerely hope that this letter has adequately answered your questions. You may wish to call the City Clerk' s Office, 384-5102 , on the Friday prior to the November 1 Council Meeting to find out where your item has been placed on the Council agenda. Sincerely, HAUNA CLARK City Administrator . Q 0 ACF.NOWL EDGEMENT a LOT TRACT / 7 the undersigned , acknowledge that I have read this disclosure nd understand that a Special Tax will be collected along with eaular property taxes to finance public facilites as listed in able i . By reference to Table 2 of this disclosure# I recognize hase falls into Class hat the property I am considering for purc -Z-1 and I understand that I may be responsible fbr the orresponding maximum Special Tax. I also understand that a copy n file with the City of San ,f this brochure will be kept o ernardino. signed _ )ated S C Signed / Dated S SUIltiARy BROCHURE DOES NOT WAIVE OR ALTER ANY OF THE CONDI- T11IS TIONS OR PROVISIONS OF THE "NOTICE OF SPECIAL TAX LIEN" FROM TIIG TITLE REPORT OF YOUR PROPERTY. FOR MORE DETAILED INFORMATION , A TAX PROSPECTIVE LI TIVE`.)IIICE0CAN ALSOULBEREVIEW OBTAINEDTHE BYENTIRE CALLING"NOTICE COITY SPECIAL SAN TAX LIEN" BERNARDINO AT (714 ) 384-5111 . Fly 3205 W. Hyatt Rd San Bernardino, CA 92407 (APN 261-501-38) Home 909-887-3005 Work 909-350-6602 October 18 , 1993 Mayor and Cormon Council City of San Bernardino 300 N. "D" Street San Bernardino, CA 92418 RE: INCREASE IN ASSESSMENT/CFD 995/AREA B - VERDEMONT AREA Dear Mayor -and Councilmembers: On October 16, 1993 , I received the secured property tax bill for my property located at 3205 W. Hyatt Drive in the Verdemont area of the City of San Bernardino (Assessors parcel No. 261-501-38) . This is a single family residential property which is within Community Facilities District (CFD) 995/Area B, which levies an annual tax on all properties within that district for public improvements. The tax bill for 1993 indicates a $1,734 .57 assessment from CFD 995. The tax bill for 1992 indicated a $1, 027. 49 assessment from the same district (see attached tax statements) . A comparison of the two tax bills indicates a $707 . 08 (69%) increase in the tax levy from CFD 995 from 1992 to 1993 . The 1993 tax bill (total of $3 ,804 . 90) is 24% higher than the 1992 bill, which is almost completely attributable to the aforementioned increase in CFD 995/Area B. I find it unbelievable that the City would attempt to increase the levy on a CFD by 69% without at least attempting to provide some explanation to the affected property owners, as well as citing the legal authority to raise this levy to such a high level. As can be seen on the 1993 tax bill, the CFD 995/Area B levy ($1,734 .57) is now almost equivalent to the General San Bernardino County tax levy ($1, 827 . 10) . The total 1993 taxes for this property are $3 , 804 .90, which is obviously and ridiculously high for a single family residence located in the City of San Bernardino. Consequently, I am formally requesting that the appropriate city authority provide me the following information in writing: 1. The legal authority employed by the City to raise the CFD 995/Area B tax levy from $1, 027 .49 to $1, 734 . 57 within a one year period. 2 . Why I was not provided with a written notification at the time I purchased said property which would specify that such a tremendous increase could occur between two tax periods? 3 . Why the City is requiring the additional funds ($707 . 08/69% increase) , and how this fund will be utilized. Further, what, if any, tangible benefits will I as a property owner receive from this outrageous increase in taxes? 4 . What other taxes does the City of San Bernardino plan to implement against properties within CFD 995/Area B that have not been disclosed to property owners within that area? I intend to present these concerns in person to the honorable Mayor and Common Council at its November 1, 1993 meeting. Prior to that meeting, I would appreciate a written response on these items by the appropriate City authority. I believe that it goes without saying that I am deeply disappointed and angered over this outrageous tax increase with no warning or offered explanation. This increase only compounds my frustration toward the City due to the numerous existing "special taxes" , including the City's utility tax, Municipal Water District debt service and the other City assessments shown on the tax bills. If the City cannot demonstrate a tangible nexus between the taxes levied and the public goods and services provided, it should abandon or reduce these confiscatory tax levies commensurately. Thank you for your consideration and attention to this very important matter. Sincerely, Brad Weekley cc: City Administrator City Engineer City Attorney SECURED PROPERTY TAX BILL F ALL PUBLIC AGENCIES OF S ICE AGENCY AMOUNT SAN BERNARDINO COUNTY 1789.90 TOM OIDONNELL, TREASURER — TAX COLLECTOR GENERAL TAX LEVY 1.85 *CO VECTOR CONTROL HALL OF RECORDS 177 WEST THIRD STREET SAN BERNAR01M0.CALIFORNIA 94415 TELEPHONE 17141 787-8308 24 06 N y THIS STATEMENT WHEN PROPERLY STAMPED PAID BECOMES A RECEIPT FOR PAY MENT OF TAXES *S B CITY ASMT 994 18 10 LEVIED FOR THE FISCAL YEAR STATED BELOW CITY qN0 SPECIAL DISTRICT TAXES OR ASSESSMENTS *S B CITY ASMT 997 I-U Q MAY BE INCLUDED IN THIS STATEMENT *S B CITY DIST 987 BOND 24.69 0 1992 *S B CITY CFD 995 AREA B 1027.49 W SCHOOL BONDS p cc "'� PROPERTY ADDRESS SCHOOL STATE REPAYMENT 13.96 o 3205 W HYATT RD SAB SB VLY MUN WTR DEBT_�V `O 78.99 �o> OWNER(S) OF RECORD AS OF MAR 01, 1992 W F WEEKLEY, DOUGLAS B W \ a °o CO STOLWORTHY, THERESA M O j0 MAILED TO coo w Q 0261501380000 920169201 O \ V�r1 ��0 WEEKLEY, DOUGLAS B Z3y 3205 HYATT RD �'� J'a= SAN BERNARDINO , CA 92407 o N CORTAC 0005212 O—W CC W LL A LLF ` 4 oLL'LL.-i 0 U _h WJW r m<Q PARML '7JKRA7fARY BILL NUMBER m ` S�L15Af3g0Q0� 0007010 92016920 0 cn CL ANNUAL TAX BILL W o m W> TOTALTAX RATE FIRST INSTALLMENT SECONIIII INSTALLMENT N p N t -1 Y 1.107800 1539.54 1539.50 Z w our: 11701-92 DUE 02-01-93 Q a v A E SSESSD VALUES TOTAL 82 W W DESCRIPTION 3079.04 J m F—J LAND 46500_ W J W 139 49 0 TAXES DUE U-Q Z 7 Z z IMPROVEMENT PENALTY fa"LU PERSONAL PR OPE RTV AMOUNT DUE DELINQUENT 1st INST. F.r PERSONAL PRERTY PE LTV_ AFTER LU OP NH HOMEOWNER'S EXEMPTION 7000 0 12-10-92 1693.51 _ VETERANS EXEMPTIONS____ • ~ OTHER EXEMPTIONS AMOUNT DUE DELINQUENT 2nd INST. • --------------- 178990 AFTER NET VALUE FISCAL YEAR JULY O1 1992 TO JUNE 30 1993 CNTL-0016184 04-10-93 1703.45 _ HOMEOWNER'S EXEMPTION I AArAk Y CMa uv ER AGE 62 PROPERTY IS TAXED AT 1%OF FULL CASH VALUE PLUS BOND INDEBTEDNESS SEE ITEM NO. 15 ON BACK IMPORTANT REMINDERS N RACK AND SPECIAL ASSESSMENTS 1' THIS RECEFT IS VOID F NEGOTIABLE PAPER 45 RETURNED NOT PAID BY THE BANG STATUTORY PENALTIES WAY ACCRUE UNDER SUCH CRClMSUNCE 1 SECURED PROPERTY TAX BILL FOr 'LL PUBLIC FOR INFORMATION AGENCIES OF SAN BERNAROft OUNTY SERVICE AGENCY PHONE AMOUNT - TOM, O'DONNELL, TREASURER-TAX COLLECTOR m WEST THM STS�T-SAN 138* CINO.CA W415 TSIPHONE SM 3rMW GENERAL TAX LEVY 1827.10 1993 COUNTY DEBT SERVICE .00 PROPERTY ADDRESS: *CO VECTOR CONTROL 909-383-3200 1 .85 3205 W HYATT RD SAB *S B CITY ASMT 994 909-384-5111 24.02 OWNER(S)OF RECORD:AS OF MAR 01, 1993 *S B CITY ASMT 997 909-384-5111 18.05 WEEKLEY, DOUGLAS B *S B CITY DIST 987 BOND 909-699-3990 24.11 CO STOLWORTHY, THERESA M *S B CITY CFD 995 AREA B 909-699-3990 1734.57 MAILED TO: SCHOOL STATE REPAYMENT 10.77 0261501380000 930223818 SB VLY MUN WTR DEBT SVC 909-387-9200 164.43 WEEKLEY, DOUGLAS B 3205 HYATT RD SAN BERNARDINO , CA 92407 CORTAC 0005625 ?423000 7347065 1720050 PARM Nth TAX RATE AREA I ELL NUMBER I TOTAL TAX RATE 0261501380000 1 0007010 930-223818*4 1.895900 ANNUAL TAX BILL DESCRIPTION ASSESSED VALUES W+o _ 47430 �MP!:VO Et7SIFURUIiES- 142280 ------------- - IMPROVEMENTPENALTY PERSONAL PROPERTY --_- o sx� pt �ISONALPFO;ET Tr 11-011--9933 19®2.48 -01-94 96.42 NolaEOwT+a+sExPriaa__ 7000 .. - --------------- EXEMPTIONS PTU2�- . .-_ _°TMa! AMUE AFTER DELINQUENT FIRST INSTALLMENT NET VALUE 182710 10-93 2092.73 ISCAL YEAR JULY 01, 1993 TO JUNE 30, 1994 CNTL-0015844 AMOUNT DUE AFTER DELINQUENT SECOND INSTALLMENT 04-10-94 2102.67 EE IMPORTANT REMINDERS ON BACK • TO PAY WITHOUT PENALTY, PAYMENT MUST BE POSTMARKED BEFORE DELINQUENT DATE.