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CITY OF COLTON AGENDA REPORT FOR COUNCH. MERTMG nF MA -PI-TT'7 1000 TO: HONORABLE MAYOR & CITY COVNCIL APPROVAL: HENRY GARCIA CITY MANAGEI# FROM: MICHAEL J. WILLIAMS, CITY TREASURER P�J--W SUBJECT: Public Hearing and approval of a resolution regarding Change of Rate and Method of Apportionment of Special Taxes for for Community Facilities District No. 90-1 (Mt. Vernon Corridor) [DATE: February 22, 1999 BACKGROUND: The Public Hearing deals the final issue related to the restructuring of the CFD 90-1 bonds. As a part of the refunding, the Lebanoff-McKnight parcels were "carved out " of the CFD for purposes of any ongoing financial responsibility related to Special Taxes or the bonds. The Public Hearing deals with changing the Rate and Method of Apportionment (RMA) of the Special Taxes. In the original issue, the RMA provided a template for allocating the Special Taxes between the two property owners in the District. The new RMA deletes all references to the Lebanoff-McKnight parcels and states that the Plaza Las Glorias parcels owned by WHCIII investors are responsible for 100% of the Special Tax. In addition, it is necessary that all property owners in the District vote on the change to the RMA. It is necessary for the City to send a ballot to the Lebanoff-McKnight group to allow them to vote to reduce their Special Tax obligation to zero. In the event they fail to return a ballot or vote against the change in the RMA, their vote will not decide whether or not the change is made. The number of votes is determined by acreage and the WHCIII group therefore has in excess of 67% of the votes to cast in the election. As a part of the overall negotiation for the restructuring, WHCIII Investors promised to cast their ballots to change the RMA. FINANCIAL ]IMPACT: No negative financial impact. RECOMMENDATION: Approval of the Resolution. altering the Rate and Method of Apportionment of Special Taxes, item # I