AgdaPkt 2021.01.11 Amended Joint SA PFA

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7.A. - Page 10 of 25 The completed levee will be acquired pursuant to an installment purchase agreement the form of which is attached as Exhibit C to the Levee Financing and Improvement Agreement. The interest rate on the unpaid balance of the installment purchase price will be set annually at the Wall Street Journal Bank Prime Rate, plus 200 basis points. The purchase price will be paid over a 15 -year period exclusively from the proceeds of the annual facilities special tax levied against properties in the CFD. No other funds of the City are pledged to pay the purchase price. No bonds will be sold. As has been done in the past for the Maintenance District, in consultation with the Property Owners, the City will establish five-year budget plans for maintenance expenses. The services special tax will be levied annually based on the budgets for each such year. The City will retain a consultant to ensure that the special taxes are levied in accordance with the CFD special tax methodology (the rate and method of apportionment, or "RMA"). The RMA is attached as an exhibit to the Resolution of Intention to establish the CFD, and will be approved by the Property Owners in connection with the formation of the CFD. The proposed improvements are also consistent with the General Plan, as described in the attached resolution approving a Levee Financing and Improvement Agreement (Attachment B). NEXT STEPS CFD. The City Council's actions tonight will call for public hearings on November 23, 2020 on two matters: 1. The City's agreement to issue special tax indebtedness. 2. The formation of the CFD and the levy of the Special Tax. Prior to the public hearings, the City will mail ballots to the qualified landowner electors for approval of the special taxes and authorization to sell debt. Public comment will be considered at the public hearings. After closure of the public hearings, the City Council will call the landowner election, the City Clerk will open the ballots and announce the results of the election, and the Council will, among other things, adopt a resolution confirming the election results and introduce a special tax levy ordinance. Maintenance District Dissolution. The Council may consider a resolution of intention to dissolve the Maintenance District on December 21, 2020 and call for a public hearing on January 11, 2021. Public comment will be considered at the public hearing, and the Council thereafter may adopt a resolution ordering the dissolution of the Maintenance District. FISCAL IMPACT The Property Owners have agreed to pay all professional fees incurred by the City in connection with formation of the CFD and to pay for all annual costs associated with administering the special tax. These annual costs may include the actual or estimated costs incurred by the City on behalf of itself or the CFD to determine, levy and collect the special taxes, including salaries of City employees and the fees of consultants, attorneys, bond paying agents, fiscal agents and bond trustees (as applicable); collect installments of the special taxes; respond to property owner inquiries regarding the special taxes; administer appeals or requests for interpretation associated with the special taxes and the RMA; prepare and maintain required records and reports; prepare financial audits; prepare continuing disclosure by the Page 5 of 7 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore 186