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HomeMy WebLinkAboutResolution 2000-06 Oak Forest Assessment RESOLUTION NO. 2000-06 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, FLORIDA, RELATING TO THE CONSTRUCTION OF CERTAIN LOCAL IMPROVEMENTS; DESCRIBING THE PROPERTY TO BE LOCATED WITHIN THE PROPOSED OAK FOREST ASSESSMENT AREA; DETERMINING THE ESTIMATED CAPITAL COST OF THE OAK FOREST SUBDMSION WALL; DETERMINING THAT CERTAIN REAL PROPERTY WILL BE SPECIALL Y BENEFITTED BY THE OAK FOREST SUBDMSION WALL; ESTABLISHING THE METHOD OF ASSESSING THE CAPITAL COSTS OF THE OAK FOREST SUBDIVISION WALL AGAINST THE REAL PROPERTY THAT WILL BE SPECIALLY BENEFITTED THEREBY; DETERMINING THE ESTIMATED MAINTENANCE COST OF THE OAK FOREST SUBDIVISION WALL; DIRECTING THE CITY MANAGER TO PREPARE A TENTATIVE IMPROVEMENT ASSESSMENT ROLLAND A TENTATIVE MAINTENANCE ASSESSMENT ROLL BASED UPON THE METHODOLOGY SET FORTH HEREIN; ESTABLISHING A PUBLIC HEARING TO CONSIDER IMPOSITION OF THE PROPOSED IMPROVEMENT AND MAINTENANCE ASSESSMENTS AND THE METHOD OF THEIR COLLECTION; DIRECTING THE PROVISION OF NOTICE IN CONNECTION THEREWITH; AND PROVIDING AN EFFECTIVE DATE. BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, FLORIDA, AS FOLLOWS: 1 ARTICLE I DEFINITIONS AND CONSTRUCTION SECTION 1.01. DEFINITIONS. As used in this Resolution, the following terms shall have the following meanings, unless the context hereof otherwise requires. "Abutting Lot" means a Platted Lot within the Oak Forest Assessment Area that abuts the Oak Forest Subdivision Wall. "Adjusted Prepayment Amount" means (A) the amount required to prepay the Improvement Assessment for each Tax Parcel located in the Oak Forest Assessment Area (1) following issuance of the Original Obligations, as computed pursuant Section 4.03(B) hereof and revised annually pursuant to Section 4.04(G) hereof, and (2) following issuance of any Refunding Obligations, as computed pursuant Section 4.03(C) hereof and revised annually pursuant to Section 4.04(G) hereof; and (B) the comparable prepayment amounts computed and revised for each Tax Parcel against which a special assessment has been imposed to finance other Local Improvements, if any, funded from proceeds of the Obligations. "Annual Debt Service Component" means the amount computed for each Tax Parcel pursuant to Section 4.04(B) hereof. "Annual Maintenance Component" means the amount computed for each Tax Parcel pursuant to Section 5.03(A) hereof. "Assessments" means the Improvement Assessments and the Maintenance Assessments. 2 " "Benefit Unit" means the standard unit to be used in calculating the relative amount of special benefit to be derived from construction of the Oak Forest Subdivision Wall, as assigned to each Platted Lot within the Oak Forest Assessment Area pursuant to Section 3.02 hereof. "Capital Cost" means all of the expenses that are properly attributable to the design and construction of the Oak Forest Subdivision Wall and imposition of the Improvement Assessments under generally accepted accounting principles; and including reimbursement to the City for any funds advanced for Capital Cost and interest on any interfund or intrafund loan for such purposes. "City" means the City of Winter Springs, Florida. "City Attorney" means the chief attorney of the City, or such person's designee. "City Commission" means the City Commission for the City. "City Manager" means the administrative and executive head of the City as set forth in Article V of the City's Charter, or his or her designee. "Debt Service Amount" means the amount computed pursuant to Section 4.04(A) hereof "Final Resolution" means the resolution described in Sections 3.06 and 4.06 of the Ordinance which shall confirm, modify or repeal this Resolution and which shall be the final proceeding for the imposition of the Improvement Assessments and Maintenance Assessments within the Oak Forest Assessment Area. 3 "Fiscal Year" means the period commencing on October 1 of each year and continuing through the next succeeding September 30, or such other period as may be prescribed by law as the fiscal year for the City. "Funding Agreement" means the agreement pursuant to which the City agrees to deliver the Obligations against payment therefor by the purchaser or underwriter of such Obligations. "Improvement Assessment" means an annual special assessment imposed against property located within the Oak Forest Assessment Area to fund the Project Cost of the Oak Forest Subdivision Wall, and related expenses, computed in the manner described in Section 4.04 hereof. "Improvement Assessment Collection Cost" means the estimated cost to be incurred by the City during any Fiscal Year in connection with the collection of Improvement Assessments. "Improvement Assessment Collection Cost Component" means the amount computed for each Tax Parcel pursuant to Section 4.04(C) hereof. "Improvement Assessment Roll" means a non-ad valorem assessment roll relating to the Project Cost of the Oak Forest Subdivision Wall, and related expenses. "Improvement Assessment Statutory Discount Amount" means the amount computed for each Tax Parcel pursuant to Section 4.04(D) hereof. 4 "Initial Prepayment Amount" means the amount computed pursuant to Section 4.03(A) hereof for each Platted Lot located in the Oak Forest Assessment Area to prepay the Improvement Assessment, in full, prior to issuance of the Original Obligations. "Local Improvement" means a capital improvement program or plan for the construction or installation by the City for the special benefit of a neighborhood or other local area, for which special assessments may be imposed pursuant to the Ordinance. "Maintenance" means maintenance of the Oak Forest Subdivision Wall, including cleaning and repairing and similar services. "Maintenance Assessment" means an annual special assessment imposed against property located within the Oak Forest Assessment Area to fund the Maintenance Cost of the Oak Forest Subdivision Wall, and related expenses, computed in the manner described in Section 5.03 hereof. "Maintenance Assessment Collection Cost" means the estimated cost to be incurred by the City during any Fiscal Year in connection with the collection of Maintenance Assessments. "Maintenance Assessment Collection Cost Component" means the amount computed for each Tax Parcel pursuant to Section 5.03(B) hereof. "Maintenance Assessment Roll" means a non-ad valorem assessment roll relating to the Maintenance Cost of the Oak Forest Subdivision Wall, and related expenses. 5 "Maintenance Assessment Statutory Discount Amount" means the amount computed for each Tax Parcel pursuant to Section 5.03(C) hereof. "Maintenance Cost" means all or any portion of the expenses that are properly attributable to Maintenance under generally accepted accounting principals, including, without limiting the generality of the foregoing, reimbursement to the City for any funds advanced for Maintenance, and interest on any interfund or intrafund loan for such purpose. "Noise Abatement Lot" means a Platted Lot, within the Oak Forest Assessment Area, which has fifty percent or more of its geographic area located within approximately 600 feet of the Oak Forest Subdivision WaIl that is not an Abutting Lot. If a portion of a Platted Lot consists of submerged land, the submerged portion shall not be included within its geographic area for this purpose. "Oak Forest Assessment Area" means the proposed Oak Forest Assessment Area described in Section 3.01 hereof. "Oak Forest Subdivision Wall" means a six-foot high brick style waIl abutting Tuskawilla Road along the easterly boundary of the Oak Forest Assessment Area. "Obligations" means Original Obligations or Refunding Obligations. "Operating Cost" means expenses that are properly attributable to Related Services, for which special assessments may be imposed pursuant to the Ordinance. "Ordinance" means Ordinance No. 98-704, the Local Improvement and Related Service Assessment Ordinance. 6 "Original Obligations" means bonds or other evidence of indebtedness including but not limited to, notes, commercial paper, capital leases or any other obligation issued or incurred to finance a portion of the Project Cost of the Oak Forest Subdivision Wall and secured, in whole or in part, by proceeds of the Improvement Assessments. "Outstanding Principal" means the outstanding principal balance of the Obligations. For purposes of determining the "Outstanding Principal", the outstanding principal balance shall be reduced by the amount of any funds then held by the City for the sole purpose of reducing outstanding principal. "Platted Lot" means a single-family residential building lot located in the Oak Forest Assessment Area that is described on a map or plat recorded in the Seminole County Official Records. "Principal Reduction Factor" means the factor computed pursuant to Section 4.04(F) hereof. "Project Cost" means (A) the Capital Cost of the Oak Forest Subdivision Wall, (B) the Transaction Cost associated with the Obligations attributable to the Oak Forest Subdivision Wall, (C) interest accruing on such Obligations for such period of time as the City deems appropriate, (D) the debt service reserve fund or account, if any, established for the Obligations attributable to the Oak Forest Subdivision Wall, and (E) any other costs or expenses related thereto. "Property Appraiser" means the Seminole County Property Appraiser. 7 "Refunding Obligations" means a series of bonds or other evidence of indebtedness including but not limited to, notes, commercial paper, capital leases or any other obligations of the City issued or incurred to refund all or any portion of the Original Obligations or any indebtedness issued to refinance the Original Obligations. "Related Service" means the operation and maintenance of a Local Improvement. "Subdivision Enhancement Lot" means a Platted Lot within the Oak Forest Assessment Area that is neither a Noise Abatement Lot nor an Abutting Lot. "Tax Parcel" means a parcel of property to which the Property Appraiser has assigned a distinct ad valorem property tax identification number. "Tax Roll" means the real property ad valorem tax assessment roll maintained by the Property Appraiser for the purpose of the levy and collection of ad valorem taxes. "Transaction Cost" means the costs, fees and expenses incurred by the City in connection with the issuance and sale of any series of Obligations, including but not limited to (A) rating agency and other financing fees; (B) the fees and disbursements of bond counsel; (C) the underwriters' discount; (0) the fees and disbursements of the City's investment banker; (E) the costs of preparing and printing the Obligations, the preliminary official statement, the final official statement, and all other documentation supporting issuance of the Obligations; (F) the fees payable in respect of any municipal bond insurance policy; (0) administrative, development, credit review, and all other fees associated with any 8 pooled commercial paper or similar interim fmancing program; and (H) any other costs of a similar nature incurred in connection with issuance of such Obligations. "Undevelopable Tract" means any Tax Parcel located within the Oak. Forest Assessment Area that cannot be developed and therefore does not receive a special benefit from the Oak Forest Subdivision Wall, including by way of example and not limitation, submerged land, rights-of-way, utility easements and property subject to greenbelt, drainage or conservation easements. "Uniform Assessment Collection Act" means Sections 197.3632 and 197.3635, Florida Statutes, or any successor statutes authorizing the collection of non-ad valorem assessments on the same bill as ad valorem taxes, and any applicable regulations promulgated thereunder. SECTION 1.02. INTERPRETATION. Unless the context indicates otherwise, words importing the singular number include the plural number, and vice versa; the terms. "hereof:" "hereby," "herein," "hereto," "hereunder" and similar terms refer to this Resolution; and the term "hereafter" means after, and the term "heretofore" means before, the effective date of this Resolution. Words of any gender include the correlative words of the other gender, unless the sense indicates otherwise. 9 SECTION 1.03. FINDINGS. It is hereby ascertained, determined and declared that: (A) Pursuant to Article VITI, Section 2(b) of the Florida Constitution, and Sections 166.021 and 166.041, Florida Statutes, the City Commission has all powers of local self- government to perform municipal functions and to render municipal services except when prohibited by law and such power may be exercised by the enactment of legislation in the form of City ordinances. (B) The City Commission may exercIse any governmental, corporate, or proprietary power for a municipal purpose except when expressly prohibited by law, and the City Commission may legislate on any subject matter on which the Legislature may act, except those subjects described in (a), (b), (c), and (d) of Section 166.021(3), Florida Statutes. The subject matter of paragraphs (a), (b), (c), and (d) of Section 166.021(3), Florida Statutes, is not relevant to imposition of assessments related to Local Improvements within the City. (C) The City Commission has enacted the Ordinance to provide for the creation of Assessment Areas (as defined in the Ordinance) and authorize the imposition of assessments to fund (1) the construction of Local Improvements to benefit the property located therein and (2) the cost of maintaining such Local Improvements. (D) The City Commission desires to create the Oak Forest Assessment Area as an Assessment Area under the Ordinance to fund the Project Cost and the Maintenance Cost of the Oak Forest Subdivision Wall. The Oak Forest Subdivision Wall constitutes a Local 10 Improvement and the Maintenance Cost constitutes the Operating Cost of a Related Service, as defined in the Ordinance and herein. (E) The Oak Forest Assessment Area includes only Platted Lots zoned for single- family residential use and Undevelopable Tracts. None of the property located within the Oak Forest Assessment Area will be used for multi-family residential, commercial or other uses. (F) The Oak Forest Subdivision Wall will provide a special benefit to all Platted Lots located within the Oak Forest Assessment Area by improving and enhancing the exterior subdivision boundaries, the subdivision identity and the subdivision aesthetics, thus enhancing the value, use and enjoyment of such property. Certain Platted Lots will derive additional special benefit from the reduction of noise and glare caused by nearby roads. Undevelopable Tracts will not derive a special benefit from construction of the Oak Forest Subdivision Wall. (G) The City Commission has reviewed the report prepared for the City by the real estate appraisal firm of Pardue Reid Church Smith & Waller, Inc. According to the report, each Platted Lot within the Oak Forest Assessment Area will derive an equal benefit from the construction of the Oak Forest Subdivision Wall based on the aesthetics and subdivision identity provided to the Oak Forest Assessment Area by construction of the Oak Forest Subdivision Wall. The City Commission hereby finds the report and the conclusions made therein reasonable. Since all Platted Lots in the Oak Forest Assessment Area benefit equally 11 from this aesthetic component, it is fair and reasonable to assign 1.0 Benefit Unit to each Platted Lot for this component. (H) The City Commission has reviewed the report prepared for the City by the engineering fum of Co~ Porter and Holmes Engineers, Inc. According to the report, Platted Lots within approximately 600 feet of the Oak Forest Subdivision Wall will specially benefit from a reduction of noise provided by the Oak Forest Subdivision Wall. Additionally, Platted Lots directly abutting the Oak Forest Subdivision Wall will not only benefit from the noise reduction, but will also benefit from the reduction of headlight glare produced by vehicles traveling along Tuskawilla Road. The City Commission hereby finds the report and the conclusions made therein reasonable. While these additional benefits are not precisely quantifiable, it is fair and reasonable to add 0.10 Benefit Unit to each Platted Lot benefitting from the noise attenuation component and 0.15 Benefit Unit to each Platted Lot benefitting from the glare reduction component. (I) In order to reduce the total borrowing cost, the City intends to initially finance the Capital Cost by issuing a bond anticipation note for a term of five years, with all principal due in the final year. Prior to maturity of the five-year note, the City intends to issue long-term bonds, anticipating that interest rates will be lower than those presently available. (J) Since interest rates cannot be predicted with certainty, the financing plan includes a risk that interest rates will be higher on the date long-term bonds are issued. The City intends to hedge this interest rate risk by generating assessment proceeds during each 12 Fiscal Year that are greater than the scheduled debt service on the five-year note and apply the excess to prepayment of principal. To accomplish this objective, the Improvement Assessments will be based on an estimated debt service schedule which amortizes the Project Cost over 30 years with interest at the current estimated long-term rates. The amount of each assessment shall be calculated in accordance with Article IV hereof. (K) The City's investment banker has determined that a more favorable interest rate can be obtained, thereby reducing the financing costs associated with the Oak Forest Subdivision Wall, if the City covenants to budget and appropriate from other available sources to pay the debt service on the Obligations in the event assessment proceeds from the Oak Forest Assessment Area are insufficient. (L) The City Commission hereby finds and determines that the Improvement Assessments and Maintenance Assessments, to be imposed in accordance with this Resolution, provide an equitable method of funding (1) construction of the Oak Forest Subdivision Wall and (2) maintenance of the Oak Forest Subdivision Wall by fairly and reasonable allocating the cost based on the special benefit derived by the property, in the manner hereinafter described. 13 ARTICLE n NOTICE AND PUBLIC HEARING SECTION 2.01. PUBLIC HEARING. A public hearing will be conducted by the City Commission at a date, time and location to be established by the City Manager, to consider (A) creation of the Oak Forest Assessment Area, (B) imposition of the Assessments, and (C) collection of the Assessments pursuant to the Uniform Assessment Collection Act. SECTION 2.02. NOTICE BY PUBLICATION. Upon completion of the Improvement Assessment Roll and the Maintenance Assessment Roll, the City Manager shall publish a notice of the public hearing authorized by Section 2.01 hereof in the manner and the time provided in Section 3.04 of the Ordinance. Such notice shall be in substantially the form attached hereto as Appendix B. SECTION 2.03. NOTICE BY MAIL. Upon completion of the Improvement Assessment Roll and the Maintenance Assessment Roll, the City Manager shall, at the time and in the manner specified in Section 3.05 of the Ordinailce, provide first class mailed notice of the public hearing authorized by Section 2.01 hereof to each property owner proposed to be assessed at the address indicated on the Tax Roll. Such notice shall be in substantially the form attached hereto as Appendix C. 14 ARTICLE III ASSESSMENTS SECTION 3.01. DESCRIPTION OF PROPOSED ASSESSMENT AREA. The proposed Oak Forest Assessment Area shall include the property located within the Oak Forest Subdivision, as more specifically identified in Appendix A attached hereto. The Oak Forest Assessment Area is proposed for the purpose of enhancing the use and enjoyment of property located therein by funding the Oak Forest Subdivision Wall. SECTION 3.02. ASSIGNMENT OF BENEFIT UNITS. To reflect the relative amount of special benefit to be derived from construction of the Oak Forest Subdivision Wall, the number of Benefit Units attributable to each Platted Lot in a Tax Parcel within the Oak Forest Improvement Area shall be determined in the manner set forth in this Section 3.02. (A) SUBDIVISION ENHANCEMENT. The City Commission hereby finds and determines that all Platted Lots within the Oak Forest Assessment Area will derive a substantially equivalent special benefit from the aesthetic and subdivision identity provided by construction of the Oak Forest Subdivision Wall, as described in Section 1.03(G) hereof. Accordingly, 1.0 Benefit Unit will be assigned to each Platted Lot in the Oak Forest Assessment Area. (B) NOISE ABATEMENT. The City Commission hereby finds and determines that in addition to the aesthetic and subdivision identity benefits described in Section 3.02(A) 15 hereof, each Noise Abatement Lot and Abutting Lot will derive an additional special benefit from the noise reduction provided by construction of the Oak Forest Subdivision Wall, as described in Section 1.03(H) hereof, such noise reduction benefit being received in a substantially equal manner by all such Noise Abatement Lots and Abutting Lots. Accordingly; in addition to the 1.0 Benefit Unit assigned to each Platted Lot pursuant to Section 3.02(A) hereof: 0.10 Benefit Unit will be assigned to each Noise Abatement Lot and Abutting Lot in the Oak Forest Assessment Area. (C) GLARE ABATEMENT. The City Commission hereby fmds and determines that in addition to the aesthetic and subdivision identity benefits described in Section 3. 02(A) hereof and the noise abatement benefits described in Section 3.02(B) hereof, each Abutting Lot will derive an additional special benefit from the glare reduction provided by construction of the Oak Forest Subdivision Wall, as described in Section 1.03(H) hereof: such glare reduction benefit being received in a substantially equal maimer by all such Abutting Lots. Accordingly, in addition to the 1.0 Benefit Unit assigned to each Platted Lot pursuant to Section 3.02(A) hereof and the 0.10 Benefit Unit assigned to each Noise Abatement Lot and Abutting Lot pursuant to Section 3.02(B) hereof, 0.15 Benefit Unit will be assigned to each Abutting Lot in the Oak Forest Assessment Area. 16 (0) BENEFIT UNIT SUMMARY. Based upon the assignments made in Sections 3.02(A), (B) and (C) hereof, the following nwnber of Benefit Units will be assigned to Platted Lots in the Oak Forest Assessment Area: Subdivision Enhancement Lots Noise Abatement Lots Abutting Lots 1.00 Benefit Units 1.10 Benefit Units 1.25 Benefit Units 17 ARTICLE IV IMPROVEMENT ASSESSMENTS SECTION 4.01. ESTIMATED CAPITAL COST. The estimated Capital Cost for the Oak Forest Subdivision Wall is $725,000. The Project Cost of the Oak Forest Subdivision Wall will be ftmded through the imposition of Improvement Assessments against property located in the Oak Forest Assessment Area. SECTION 4.02. IMPOSITION OF IMPROVEMENT ASSESSMENTS. The Improvement Assessments shall be imposed against all Tax Parcels located within the Oak Forest Assessment Area, other than Undevelopable Tracts, for each Fiscal Year in which the Obligations remain outstanding, the amount of which shall be computed in accordance with this Article IV. When imposed, the Improvement Assessments for each Fiscal Year shall constitute a lien upon the Tax Parcels located in the Oak Forest Assessment Area, pursuant to the Ordinance. SECTION 4.03. PREPAYMENT AMOUNTS. (A) Upon adoption of the Final Resolution, an Initial Prepayment Amount for each Tax Parcel located within the Oak Forest Assessment Area shall be calculated as the amount computed by (1) dividing the number of Benefit Units attributable to such Tax Parcel by the total number of Benefit Units attributable to Tax Parcels within the Oak Forest Assessment Area, and (2) multiplying the result by the estimated Capital Cost of the Oak Forest Subdivision Wall. (B) Following issuance of the Original Obligations, an Adjusted Prepayment Amount for each Tax Parcel, other than those Tax Parcels as to which the Improvement Assessment has been prepaid prior to issuance of the Original Obligations, shall be computed by multiplying (1) the amount computed by dividing (a) the Initial Prepayment Amount established herein for such Tax Parcel by (b) the aggregate Initial Prepayment Amounts for all Tax Parcels within the Oak Forest Assessment Area, excluding those Tax Parcels as to which the Improvement Assessment has been prepaid prior to issuance of the Original Obligations, by (2) the principal amount of the Original Obligations. The Adjusted Prepayment Amount for each Tax Parcel shall be revised annually, as provided in Section 4.04(G) hereof. (C) Following issuance of any Refunding Obligations, a new Adjusted Prepayment Amount for each Tax Parcel, other than those Tax Parcels as to which the Improvement Assessment has been prepaid prior to issuance of such Refunding Obligations, shall be computed by multiplying (1) the amount computed by dividing (a) the Adjusted Prepayment Amount for such Tax Parcel by (b) the sum of (i) the aggregate Adjusted Prepayment Amounts for all Tax Parcels within the Oak Forest Assessment Area and (ii) the aggregate comparable prepayment amounts computed for all Tax Parcels against which a special assessment has been imposed to finance other Local Improvements funded from proceeds of the Obligations being refunded, in each case excluding those Tax Parcels as to which the Assessment has been prepaid prior to issuance of such Refunding Obligations, by (2) the 19 principal amount of such Refunding Obligations. The Adjusted Prepayment Amount for each Tax Parcel shall be revised annually, as provided in Section 4.04(G) hereof. SECTION 4.04. COMPUTATION OF IMPROVEMENT ASSESSMENTS. The Improvement Assessments will be imposed for each Fiscal Year in which Obligations remain outstanding and collected on the ad valorem tax bill in the manner authorized by the Uniform Assessment Collection Act. The annual Improvement Assessment shall be computed for each Tax Parcel in the manner set forth in this Section 4.04. (A) DEBT SERVICE AMOUNT. A "Debt Service Amount" of$74.34 per Benefit Unit will be used for each Fiscal Year the Obligations remain outstanding. The amount is computed by dividing (I) the maximum amount of debt service which would be payable in accordance with an estimated debt service schedule prepared by the City's investment banker, assuming approximately level debt service payments over a 30-year term and interest rates equal to those currently available in the investment banker's judgment for comparable securities, by (2) the total number of Benefit Units in the Oak Forest Assessment Area. (B) ANNUAL DEBT SERVICE COMPONENT. The "Annual Debt Service Component" shall be computed for each Fiscal Year for each Tax Parcel by multiplying (1) the number of Benefit Units attributable to such Tax Parcel by (2) the Debt Service Amount. (C) IMPROVEMENT ASSESSMENT COLLECTION COST COMPONENT. The "Improvement Assessment Collection Cost Component" shall be computed each Fiscal Year for each Tax Parcel by (1) dividing (a) the Adjusted Prepayment Amount for such Tax Parcel 20 by (b) the sum of the aggregate Adjusted Prepayment Amount, and (2) multiplying the result by the Improvement Assessment Collection Cost. (0) IMPROVEMENT ASSESSMENT STATUTORY DISCOUNT AMOUNT. The "Improvement Assessment Statutory Discount Amount" shall be computed for each Tax Parcel as the amount allowed by law as the maximum discount for early payment of ad valorem taxes and non-ad valorem assessments, such amount to be calculated by deducting (1) the sum of (a) the Annual Debt Service Component and (b) the Improvement Assessment Collection Cost Component, from (2) the amount computed by dividing (a) the sum of (i) the Annual Debt Service Component and (ii) the Improvement Assessment Collection Cost Component, by (b) the factor of 0.96. (E) IMPROVEMENT ASSESSMENT. The annual Improvement Assessment for each Tax Parcel shall be computed as the sum of the Annual Debt Service Component, the Improvement Assessment Collection Cost Component and the Improvement Assessment Statutory Discount Amount. (F) PRINCIPAL REDUCTION FACTOR. After application of the. Improvement Assessments in accordance with Section 4.10 hereof, a "Principal Reduction Factor" shall be computed for each Fiscal Year by multiplying (1) the amount computed by dividing (a) the Outstanding Principal by (b) the total principal amount of Obligations issued by the City, by (2) the amount computed by dividing (a) the original total number of Benefit Units attributable to Tax Parcels within the Oak Forest Assessment Area by (b) the current total 21 number of Benefit Units attributable to Tax Parcels within the Oak Forest Assessment Area as to which the Improvement Assessment has not been prepaid. (G) REVISION OF ADJUSTED PREPAYMENT AMOUNT. Upon determination of the Principal Reduction Factor for each Fiscal Year, the Adjusted Prepayment Amount for each Tax Parcel shall be recomputed by multiplying (1) the original Adjusted Prepayment Amount established for such Tax Parcel (or, in the case of Refunding Obligations, the Adjusted Prepayment Amount computed in Section 4.03(C) hereof), by (2) the Principal Reduction Factor. SECTION 4.05. INITIAL PREPAYMENT OPTION. (A) Following adoption of the Final Resolution, the City Manager shall provide first class mailed notice to the owner of each Tax Parcel subject to the Improvement Assessment of the owner's option to prepay all future annual Improvement Assessments. On or prior to the date specified in such notice, the owner of each Tax Parcel subject to the Improvement Assessment shall be entitled to prepay all future annual Improvement Assessments, upon payment of the Initial Prepayment Amount. The City Commission, in its sole discretion, may elect to accept prepayments pursuant to this Section 4.05 on any date prior to execution of the Funding Agreement. (B) The amount of all prepayments made pursuant to this Section 4.05 shall be final. The City shall not be required to refund any portion of a prepayment if (1) the actual Capital Cost of the Oak Forest Subdivision Wall is less than the estimated Capital Cost upon which the Initial Prepayment Amount was computed, or (2) annual Improvement 22 Assessments will not be imposed for the full number of years anticipated at the time of such prepaYment. SECTION 4.06. ADDITIONAL PREPAYMENT OPTION. (A) Following the date specified in the notice provided pursuantto Section4.05(A) hereof, or such later date as the City Commission may allow in its sole discretion, the owner of each Tax Parcel subject to the Improvement Assessments shall be entitled to prepay all future unpaid annual Improvement Assessments upon payment of an amount equal to the sum of (1) the Adjusted Prepayment Amount for such Tax Parcel, and (2) interest on the Adjusted Prepayment Amount, computed at the rate utilized to compute the Debt Service Amount in Section 4.04(A) hereof, from the most recent date to which interest on the Obligations has been paid to the next date following such prepayment on which the City can redeem Obligations after providing all notices required to redeem all or any portion of the Obligations. (B) During any period commencmg on the date the annual Improvement Assessment Roll is certified for collection pursuant to the Uniform Assessment Collection Act and ending on the next date on which unpaid ad valorem taxes become delinquent, the City may reduce the amount required to prepay the future unpaid annual Improvement Assessments for the Tax Parcel by the amount of the Improvement Assessment that has been certified for collection with respect to such Tax Parcel. (C) Except as provided in Section 4.08, the amount of all prepayments made pursuant to this Section 4.06 shall be final. The City shall not be required to refund any 23 portion of a prepayment if (1) the Capital Cost of the Oak Forest Subdivision Wall is less than the amount upon which such Adjusted Prepayment Amount was computed, or (2) annual Improvement Assessments will not be imposed for the full number of years anticipated at the time of such prepayment. SECTION 4.07. MANDATORY PREPAYMENT. (A) If at any time a tax certificate has been issued and remains outstanding in respect of any Tax Parcel subject to the Improvement Assessment, the owner shall prepay all future unpaid annual Improvement Assessments for such Tax Parcel if the City Commission, at its sole option, elects to accelerate the Improvement Assessment. The amount required to prepay the future unpaid annual Improvement Assessments will be equal to the sum of (1) the Adjusted Prepayment Amount for such Tax Parcel, and (2) interest on the Adjusted Prepayment Amount, computed at the rate utilized to compute the Debt Service Amount in Section 4.04(A) hereof, from the most recent date to which interest on the Obligations has been paid to the next date following such prepayment on which the City can redeem Obligations after providing all notices required to redeem all or any portion of the Obligations. (B) During any period commencmg on the date the annual Improvement Assessment Roll is certified for collection pursuant to the Uniform Assessment Collection Act and ending on the next date on which unpaid ad valorem taxes become delinquent, the City may reduce the amount required to prepay the future unpaid annual Improvement 24 Assessments for the Tax Parcel by the amount of the Improvement Assessment that has been certified for collection with respect to such Tax Parcel. (C) The amount of all prepayments made pursuant to this Section 4.07 shall be final. The City shall not be required to refund any portion of a prepayment if (1) the Capital Cost of the Oak Forest Subdivision Wall is less than the amount upon which such Adjusted Prepayment Amount was computed, or (2) annual Improvement Assessments will not be imposed for the full number of years anticipated at the time of such prepayment. SECTION 4.08. REALLOCATION. Ifa Tax Parcel consists of more than one Platted Lot, the Initial Prepayment Amount for such Tax Parcel (or, if Obligations have been incurred, the Adjusted Prepayment Amount for such Tax Parcel) may be reallocated pro rata among the Platted Lots upon (1) application of the owner and (2) assignment of a distinct ad valorem property tax identification number to each Platted Lot or any combination of Platted Lots by the Property Appraiser. SECTION 4.09. IMPROVEMENT ASSESSMENT ROLL. The City Manager is hereby directed to prepare a final estimate of the Capital Cost for the Oak Forest Subdivision Wall and to prepare the preliminary Improvement Assessment Roll in the manner provided in the Ordinance. The City Manager shall apportion the Project Cost among the parcels of real property within the Oak Forest Assessment Area as reflected on the Tax Roll in conformity with Article IV hereof. The estimate of Capital Cost and the Improvement Assessment Roll shall be maintained on file in the offices of the City Manager 25 and open to public inspection. The foregoing shall not be construed to require that the Improvement Assessment Roll be in printed form if the amount of the Improvement Assessment for each Tax Parcel can be determined by use of a computer terminal available to the public. SECTION 4.10. APPLICATION OF IMPROVEMENT ASSESSMENT PROCEEDS. Proceeds from the Improvement Assessments received during each Fiscal Year shall be applied by the City for paYment of the Improvement Assessment Collection Costs, paYment of any Transaction Costs not funded from proceeds of the Obligations, paYment of interest due on the Obligations, and paYment of principal due on the Obligations. Any remaining proceeds will then be used for prepaYment of the Obligations. 26 ARTICLE V MAINTENANCE ASSESSMENTS SECTION 5.01. ESTIMATED MAINTENANCE COST. The estimated Maintenance Cost for the Oak Forest Subdivision Wall is $14,000 per Fiscal Year. The Maintenance Cost of the Oak Forest Subdivision Wall will be funded through the imposition of Maintenance Assessments against property located in the Oak Forest Assessment Area. SECTION 5.02. IMPOSITION OF MAINTENANCE ASSESSMENTS. The Maintenance Assessments shall be imposed against all property located within the Oak Forest Assessment Area for each Fiscal Year, other than Undevelopable Tracts, and shall be computed in accordance with this Article V. When imposed, the Maintenance Assessments for each Fiscal Year shall constitute a lien upon the Tax Parcels located in the Oak Forest Assessment Area, pursuant to the Ordinance. SECTION 5.03. COMPUTATION OF MAINTENANCE ASSESSMENTS. The annual Maintenance Assessments shall be computed for each Tax Parcel located in the Oak Forest Assessment Area, other than Undevelopable Tracts, in the manner set forth in this Section 5.03. (A) ANNUAL MAINTENANCE COMPONENT. The "Annual Maintenance Component" shall be calculated for each Fiscal Year for each Tax Parcel by (1) dividing (a) the Maintenance Cost by (b) the total number of Benefit Units attributable to Tax Parcels 27 within the Oak Forest Assessment Area, and (2) multiplying the result by the number of Benefit Units attributable to the Tax Parcel. (B) MAINTENANCE ASSESSMENT COLLECTION COST COMPONENT. The "Maintenance Assessment Collection Cost Component" shall be computed each Fiscal Year for each Tax Parcel by (1) dividing (a) the Maintenance Assessment Collection Cost by (b) the total number of Benefit Units located in the Oak Forest Assessment Area, and (2) multiplying the result by the number of Benefit Units attributable to the Tax Parcel. (C) MAINTENANCE ASSESSMENT STATUTORY DISCOUNT AMOUNT. The "Maintenance Assessment Statutory Discount Amount" shall be computed for each Tax Parcel as the amount allowed by law as the maximum discount for early payment of ad valorem taxes and non-ad valorem assessments, such amount to be calculated by deducting (1) the sum of (a) the Annual Maintenance Component and (b) the Maintenance Assessment Collection Cost Component, from (2) the amount computed by dividing (a) the sum of (i) the Annual Maintenance Component and (ii) the Maintenance Assessment Collection Cost Component, by (b) the factor of 0.96. (0) MAINTENANCE ASSESSMENT. The annual Maintenance Assessment for each Tax Parcel shall be computed as the sum of (1) the Annual Maintenance Component, (2) the Maintenance Assessment Collection Cost Component, and (3) the Maintenance Assessment Statutory Discount Amount. SECTION 5.04. MAINTENANCE ASSESSMENT ROLL. The City Manager is hereby directed to prepare a final estimate of the Maintenance Cost for the Oak Forest 28 Subdivision Wall and to prepare the preliminary Maintenance Assessment Roll in the manner provided in the Ordinance. The City Manager shall apportion the Maintenance Cost among the parcels of real property within the Oak Forest Assessment Area as reflected on the Tax Roll in conformity with Article V hereof. The estimate of Maintenance Cost and the Maintenance Assessment Roll shall be maintained on file in the offices of the City Manager and open to public inspection. The foregoing shall not be construed to require that the Maintenance Assessment Roll be in printed form if the amount of the Maintenance Assessment for each Tax Parcel can be determined by use of a computer terminal available to the public. 29 ARTICLE VI GENERAL PROVISIONS SECTION 6.01. METHOD OF COLLECTION. The Assessments shall be collected pursuant to the Uniform Assessment Collection Act. SECTION 6.02. SEVERABILITY. If any clause, section or provision of this Resolution shall be declared unconstitutional or invalid for any reason or cause, the remaining portion of said Resolution shall be in full force and effect and be valid as if such invalid portion thereof had not been incorporated herein. SECTION 6.03. EVIDENCE OF PAYMENT. Payment in full of the Improvement Assessment imposed against any Tax Parcel shall operate as a release of the Improvement Assessment lien upon such Tax Parcel. Upon request, the City Manager may issue a written confirmation to evidence such payment; provided however, that the issuance of written confirmation shall not be required to release the Improvement Assessment lien. The City may impose an administrative fee to defray the cost of providing written confinnation pursuant to this Section 6.03. 30 SECTION 6.04. EFFECTIVE DATE. This Resolution shall take effect immediately upon its adoption. DULY ADOPTED this 10th day of April, 2000. (SEAL) ATTEST: r r:I'lI thony A. Garganese City Attorney By: Paul P. P Mayor 31 GS, FLORIDA 7 APPENDIX A DESCRIPTION OF OAK FOREST ASSESSMENT AREA OAK FOREST ASSESSMENT AREA The OAK FOREST DEVELOPMENT including Oak Forest Unit 1 as recorded in Plat Book 22 Pages 82-83, Oak Forest Unit 2 as recorded in Plat Book 24 Pages 95-96, Oak Forest Unit 2A as recorded in Plat Book 23 Page 62, Oak Forest Unit 2B as recorded in Plat Book 26 Pages 85-86, Oak Forest Unit 3 as recorded in Plat Book 27, Pages 92-93, Oak Forest Unit 4 as recorded in Plat Book 29 Pages 59-60, Oak Forest Unit 5 as recorded in Plat Book 31 Pages 89-90, Oak Forest Unit 6 as recorded in Plat Book 35 Pages 25-27, Oak Forest Unit 7 as recorded in Plat Book 39, Pages 16-17, and Oak Forest Unit 8 as recorded in Plat Book 41 Pages 91-94 of the Seminole County Records. A-I APPENDIX B FORM OF NOTICE TO BE PUBLISHED To Be Published . 2000 [MAP OF OAK FOREST ASSESSMENT AREA] NOTICE OF HEARING TO IMPOSE AND PROVIDE FOR COLLECTION OF NON-AD VALOREM ASSESSMENTS Notice is hereby given that the City Commission of Winter Springs, Florida, will conduct a public hearing to consider creation of the Oak Forest Assessment Area, as shown above, and to impose non-ad valorem assessments against certain property located therein and collecting the assessments on the ad valorem tax bill. The hearing will be held at on , in the , Winter Springs, Florida. In accordance with the Americans with Disabilities Act, persons needing a special accommodation or an interpreter to participate in this proceeding should contact the City Clerk's office at (407) 327-1800 at least 48 hours prior to the date of the hearing. All affected property owners have a right to appear at the hearing and to file written objections with the City Commission within 20 days of this notice. Any person wishing to appeal any decision of the City Commission with respect to any matter considered will need a record and may wish to ensure that a verbatim record is made. The assessments have been proposed to fund capital and maintenance costs for construction of a privacy wall to serve the Oak Forest Assessment Area. The project to construct the privacy wall is referred to as the Oak Forest Subdivision Wall. The assessment for each parcel of property within the Oak Forest Assessment Area will be based upon the parcel's proximity to the privacy wall measured in "Benefit Units." The assignment of Benefit Units is based on the level of benefit each lot receives from aesthetic and subdivision identity (all lots), noise abatement (lots with the majority of their area within 600 feet of the Oak Forest Subdivision Wall) and glare abatement (lots that abut the Oak Forest Subdivision Wall). A more specific description is set forth in the Initial Assessment Resolution adopted by the City Commission on April 1 0, 2000. Copies of the Initial Assessment Resolution, the plans and specifications for the project, and the preliminary assessment rolls are available for inspection at the offices of the City Manager, located at 1126 East State Road 434, Winter Springs, Florida. Annual capital and maintenance assessments to fund the Oak Forest Subdivision Wall will be collected on the ad valorem tax bill for a period of 30 years, commencing with the tax bill to be mailed in November 2000. Failure to pay the assessments will cause a tax certificate to be issued against the property which may result in a loss of title. Future annual B-1 capital assessments may be prepaid at the option of the property owner. However, future annual maintenance assessments may not be prepaid. If you have any questions, please contact the City Manager's Office at (407) 327- 1800. ~NTERSPB1NGS,FLORIDA B-2 -- APPENDIX C FORM OF NOTICE TO BE MAILED ***** THIS IS NOT A BILL ***** WINTER SPRINGS, FLORIDA NOTICE OF HEARING TO IMPOSE AND PROVIDE FOR COLLECTION OF SPECIAL ASSESSMENTS IN THE OAK FOREST ASSESSMENT AREA -' 2000 [Property Owner Name] [Street Address] [City, State and zip] Re: Tax Parcel Nwnber [Insert Nwnber] Oak Forest hnprovement Area Dear Property Owner: The Oak Forest Assessment Area is being created to provide a privacy wall within that area. The project to construct the privacy wall is referred to as the Oak Forest Subdivision Wall. The construction and maintenance costs of the Oak Forest Subdivision Wall will be funded by assessments against the property located within the Oak Forest Assessment Area. The construction and maintenance assessments for each parcel of property are based on its proximity to the Oak Forest Subdivision Wall measured in "Benefit Units." The assignment of Benefit Units is based on the level of benefit each lot receives from aesthetic and subdivision identity (all lots), noise abatement (lots with the majority of their area within 600 feet of the Oak Forest Subdivision Wall) and glare abatement (lots that abut the Oak Forest Subdivision Wall). A more specific description of the assessment program is set forth in the Initial Assessment Resolution adopted by the City Commission on April 10, 2000. Copies of the Initial Assessment Resolution, the plans and specification for the Oak Forest Assessment Area, and the preliminary assessment rolls including the capital and maintenance assessments are available for your review at the offices of the City Manager, located at 1126 East State Road 434, Winter Springs, Florida. Information regarding the assessment for your specific property, including the number of Benefit Units assigned to your property, is attached to this letter. The City intends to issue bonds to finance the capital costs of this assessment project. In order to reduce the total borrowing cost, the City will initially finance the capital cost by issuing a short-term note for a term of five years, with all principal due in the final year. C-l Prior to maturity of the five-year note, the City intends to issue long-term bonds anticipating that interest rates will be lower than those presently available. This fmancing plan will permit the capital cost attributable to your property to be amortized over a period of30 years. However, you may choose to prepay your assessment in full and avoid the additional financing cost. Please do not send payment now. If the assessments are imposed, you will receive a separate notice of the date and place of payment. If you do not choose to prepay during the period described in the next notice you will receive, the amount necessary to pay your assessment in full will be increased by your share of the financing cost. The City anticipates that financing costs will increase the prepayment amount by approximately _ percent to $ per Benefit Unit. The annual assessment will include: · your share of the principal and interest on the bonds (unless you choose to prepay that amount); · your share of the maintenance costs; · your share of the collection cost of the assessments; and · the maximum discount allowed for early payment under the Uniform Assessment Collection Act. The City expects to collect approxim~tely $ per year for the purposes described in this notice. The City intends to include annual assessments on your ad valorem tax bill. Failure to pay your assessments will cause a tax certificate to be issued against the property which may result in a loss of title. The City Commission will hold a public hearing at _ on , in the , Winter Springs, Florida, for the purpose of receiving comments on the proposed assessments, including collection on the ad valorem tax bill. You are invited to .attend and participate in the hearing. You may also file written objections with the City Commission prior to or during the hearing. If you decide to appeal any decision made by the City Commission with respect to any matter considered at the hearing, you will need a record of the proceedings and may need to ensure that a verbatim record is made, including the testimony and evidence upon which the appeal is to be made. In accordance with the Americans with Disabilities Act, if you need a special accommodation or an interpreter to participate in this proceeding, please contact the City Clerk's office at (407)327-1800 at least 48 hours prior to the date of the hearing. C-2 If you have any questions, please contact the City Manager's office at (407) 327-1800. WINTER SPRINGS, FLORIDA C-3 .. .. .. .. .. SEND NO MONEY NOW. THIS IS NOT AN INVOICE" .. .. .. .. OAK FOREST ASSESSMENT AREA [PROPERTY OWNER NAME] Tax Parcel Number [INSERT NUMBER] Total number of Benefit Units attributed to property: [INSERT NUMBER] $[INSERT AMOUNT] $[INSERT AMOUNT] $[INSERT AMOUNT] $[INSERT AMOUNT] $[INSERT AMOUNT] Initial prepayment amount (excludes financing cost): Adjusted prepayment amount (includes fmancing cost): Annual Capital Assessment: Annual Maintenance Assessment: Total Annual Assessment: Number of annual capital payments: 30 Expected date of first bill: November 2000 Total amount of annual payments: $[INSERT AMOUNT] .. .. .. .. .. SEND NO MONEY NOW. THIS IS NOT AN INVOICE" .. .. .. .. C-4