Measure A

Impartial analysis by City Attorney of Measure A

CITY OF LARKSPUR
MEASURE A

This Measure was placed on the ballot by the City Council of the City of Larkspur.

The City Council established Community Facilities District No. 2024-2 (Larkspur Lagoon Bulkhead Replacement Project) of the City of Larkspur (the “District”) in order to levy taxes and issue bonds to fund the costs of the construction and improvement of the privately-owned bulkhead/seawalls and related facilities located in or about the community commonly
known as the Larkspur Marina and which relate to the Larkspur Lagoon.

If this Measure is approved by two-thirds of the votes cast, the District may issue bonds not exceeding $22,000,000 and impose a special tax annually on nonexempt County of Marin Assessor’s parcels within the boundaries of the District.

Issuing bonds is a method by which a community facilities district can borrow money to finance facilities. The bonds are repaid from the proceeds of the special tax. The bonds would constitute an indebtedness of the District, not the City. The money raised through the sale of the bonds would be used by the District to finance costs of the construction and improvement of the privately-owned bulkhead/seawalls and related facilities located in or about the community commonly
known as the Larkspur Marina and which relate to the Larkspur Lagoon.

The term of the bonds will not exceed 35 years from the date of issuance and the bonds will bear interest at the rate or rates set at the time the sale of the bonds not to exceed the maximum rate permitted by law.

The special tax would be levied on non-exempt Marin County Assessor’s parcels in the District for the purpose of paying: (1) the bonded indebtedness; (2) the cost of District administration; and (3) incidental expenses related to the project described above. If approved, the special tax will be levied at up to the maximum special tax rates for each County Assessor’s Parcel as set forth in the Rate and Method of Apportionment of Special Tax of the District included in the Voter’s Information Pamphlet. Such amount of the special tax is approximately $260 per linear feet of bulkhead length of each County Assessor’s Parcel in the District fronting the Larkspur Marina Lagoon.

The special taxes will be levied only so long as needed to repay the District bonds, not to exceed 35 years. The actual special tax is dependent upon the principal amount of and interest rate on the bonds, the timing of the issuance of bonds, the terms of the bonds, and the level of delinquencies in payment of the Special Tax.

Pursuant to California Constitution Article XIIIB and applicable laws, the annual appropriations limit for the District will be initially set to $3,000,000 on expenses other than debt service.

The above statement is an impartial analysis of Measure A. If you desire a copy of the resolution calling the election for Measure A, please call the City Clerk’s office at (415) 927-5002 or send an email to pvglpyrex@pvglbsynexfche.bet and a copy will be mailed at no cost to you.

Dated: December 26, 2024

/s/SKY WOODRUFF
City Attorney
City of Larkspur

TAX RATE STATEMENT

COMMUNITY FACILITIES DISTRICT NO. 2024-2 (LARKSPUR LAGOON BULKHEAD REPLACEMENT PROJECT) OF THE CITY OF LARKSPUR
MEASURE A

The City Council of the City of Larkspur has called an election regarding the Community Facilities District No. 2024-2 (Larkspur Lagoon Bulkhead Replacement Project) of the City of Larkspur (the “District”) to be held on March 4, 2025, for the purpose of authorizing the District to levy special taxes (the “Special Taxes”), to issue bonds in the principal amount of up to $22,000,000 (the “Bonds”), and to provide an annual appropriations limit for the District of $3,000,000. 

The Bonds would be issued to finance the costs of the construction and improvement of the privately-owned bulkhead/seawalls and related facilities located in or about the community commonly known as the Larkspur Marina and which relate to the Larkspur Lagoon. The District would be authorized to levy the Special Taxes on each County Assessor’s Parcel of Taxable Property (as defined in Exhibit B hereto) in the District to provide funds to repay the Bonds and to pay certain administrative expenses of the District. The authorized purposes of the Bonds are as described on Exhibit A.

It is currently expected that, if the District ballot measure is approved by at least two-thirds of the qualified electors casting ballots in the election, the Bonds will be issued in 2025, and will have a term of not more than thirty-five years. The actual timing of the sale of the Bonds, the term that the Bonds are to remain outstanding, and the principal amount of the Bonds sold will be governed by bond market conditions and the needs of the District. The actual interest rates on the Bonds will be based on the bond market interest rates at the time of the sale of the Bonds.

The Special Taxes are authorized to be levied on property located in the District in accordance with the provisions of the Rate and Method of Apportionment of Special Tax (the “Rate and Method”), a copy of which is attached hereto as Exhibit B, as approved by Resolution No. 78/24 of the City Council.  The actual rate of the Special Tax that will be levied to repay the Bonds and provide for the administrative costs of the District is dependent upon the principal amount of and interest rate on the Bonds, the timing of the issuance of Bonds, the terms of the Bonds, and the level of delinquencies in payment of the Special Tax. Based upon the maximum Special Tax that may be levied by the District, it is estimated that the following Special Tax rates will occur:

1. The Special Tax rate for each County Assessor’s Parcel of Taxable Property expected to occur in fiscal year 2026-2027, which is the first fiscal year following the sale of Bonds, is approximately $260 per linear feet of bulkhead length of such County Assessor’s Parcel fronting the Larkspur Marina Lagoon.  The actual amount of the annual Special Tax for each County Assessor’s Parcel of Taxable Property in the District is set forth in Exhibit B hereto.
2. The maximum Special Tax rate per parcel does not escalate.
3. Assuming no prepayments of the Special Tax or early redemption of the Bonds from any excess construction proceeds of the Bonds, the Special Tax rate expected to occur in fiscal year 2020-61, which is the final fiscal year in which the Bonds are expected to be outstanding and Special Tax is expected to be levied, is expected to remain the same as the amounts set forth in Exhibit B hereto for each County Assessor’s Parcel of Taxable Property in the District.

Based on current estimates, the total debt service on the Bonds, including the principal and interest that would be required to be repaid, would be $53,122,400.

The estimates set forth above are estimates only.  The actual Special Tax rate for any fiscal year may be less than the maximum Special Tax rate depending on the principal amount of and the interest rate on the Bonds and the costs to administer the District.

ATTACHMENT A

Types of Facilities to Be Financed by Community Facilities District No. 2024-2 (Larkspur Lagoon Bulkhead Replacement Project) of the City of Larkspur 

The proposed types of facilities and expenses to be financed by the District include:

The construction, purchase, modification, expansion, rehabilitation, improvement and/or maintenance of privately-owned bulkhead/seawalls and related facilities located in or about the community commonly known as the Larkspur Marina and which relate to the Larkspur Lagoon, as authorized to be financed under the Mello-Roos Community Facilities Act of 1982, as amended (the “Facilities”), and all appurtenances and appurtenant work in connection with the foregoing privately-owned Facilities, including the cost of engineering, planning, designing, materials testing, permitting, mitigation, coordination, construction staking, construction management and supervision for such Facilities, and to finance the incidental expenses to be incurred, including:

a. The cost of engineering, planning and designing the Facilities;

b. All costs, including costs associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District; and

c. Any other expenses incidental to the purchase, modification, expansion, rehabilitation, improvement and/or maintenance of the privately-owned Facilities.

Capitalized terms used and not defined herein shall have the meaning set forth in the Rate and Method of Apportionment of Special Taxes for the District.

ATTACHMENT B

Rate and Method of Apportionment of Special Tax for Community Facilities District No. 2024-2 (Larkspur Lagoon Bulkhead Replacement Project) of the City of Larkspur

A Special Tax, as hereinafter defined, shall be levied and collected within Community Facilities District No. 2024-2 (Larkspur Lagoon Bulkhead Replacement Project) of the City of Larkspur (“CFD No. 2024-2”) each Fiscal Year commencing in Fiscal Year 2026/27, in an amount determined by the application of the procedures below. All Taxable Property within CFD No. 2024-2, as hereinafter defined, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS

The terms hereinafter set forth have the following meaning:

“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map. In the event that the Assessor’s Parcel Map shows no acreage, the Acreage for any Assessor’s Parcel may be determined by the CFD Administrator based upon, in the CFD Administrator’s discretion, the applicable condominium plan, final map, parcel map, Assessor’s Data or by using available spatial data and GIS. 

“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1, Division 2 of Title 5 of the Government Code of the State.

“Administrative Expenses” means the actual or reasonably estimated costs directly related to the administration of CFD No. 2024-2 including, but not limited to, the following: the costs of any paying agents/fiscal agents/trustees related to CFD No. 2024-2 Bond payments (including the fees and expenses of related counsel); the costs of computing the Annual Special Tax Requirement, the Special Taxes and of preparing the collection schedules for the Special Taxes; the costs of collecting the Special Taxes, including any charges levied by the County Auditor’s Office, County Tax Collector’s Office or County Treasurer’s Office; the costs of the City or designee in complying with the disclosure requirements associated with applicable federal and state securities laws, or otherwise related to CFD No. 2024-2 or CFD No. 2024-2 Bonds; the City’s annual administration fees and third party expenses; costs of responding to public inquiries regarding the Special Taxes; the costs of the City or designee related to an appeal of the Special Tax or interpretation of this Rate and Method of Apportionment of Special Taxes; amounts needed to pay any required arbitrage rebate to the federal government related to CFD No. 2024-2 Bonds; and the costs associated with the release of funds from any escrow account. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2024-2 for any other administrative purposes of CFD No. 2024-2.

“Annual Special Tax Requirement” means that amount required in any Fiscal Year for CFD No. 2024-2 to (1) pay Debt Service on all Outstanding CFD No. 2024-2 Bonds due in the Debt Year that commences in such Fiscal Year; (2) pay debt service on bonds expected to be issued by the City on behalf of CFD No. 2024-2 due in the Debt Year that commences in such Fiscal Year; (3) Administrative Expenses; and (4) provide an amount equal to reasonably anticipated Special Tax delinquencies based on the delinquency rate for Special Taxes levied in the previous Fiscal Year as determined by the CFD Administrator, as limited by the Act, and without duplicating any amounts described in clauses (3) or (4). The amounts referred to in clauses (1) through (4) of the preceding sentence may be reduced in any Fiscal Year (in the City's sole discretion) by (i) surplus balances in funds and accounts for CFD No. 2024-2 Bonds to the extent that such balances are available to apply against Debt Service pursuant to the Indenture, (ii) proceeds from the collection of penalties associated with delinquent Special Taxes, and (iii) any other revenues available to pay Debt Service on the Outstanding CFD No. 2024-2 Bonds or other indebtedness as determined by the CFD Administrator.

“Assessor’s Data” means the property characteristic data compiled and maintained by the County Assessor for each Assessor’s Parcel, including, but not limited to, Assessor’s Parcel Number and Acreage.

“Assessor’s Parcel” or “Parcel” means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.

“Assessor’s Parcel Map” means an official map of the County Assessor designating parcels by Assessor’s Parcel Number.

“Assessor’s Parcel Number” or “APN” means, with respect to an Assessor’s Parcel, that number assigned to such Assessor’s Parcel by the County for purposes of identification.

“Authorized Facilities” means the facilities authorized to be financed, in whole or in part, by CFD No. 2024-2 Bonds.

“Bond Year” means the one-year period commencing September 2 and ending on the following September 1.

“Bulkhead” means the retaining wall built along the waterfront of Larkspur Marina Lagoon.

“Bulkhead Length” means the length of the Bulkhead traversing each Assessor’s Parcel, as measured in feet. Initial values for Bulkhead Lengths were determined via survey by Foth Infrastructure & Environment, LLC, contractor for the Authorized Facilities.

“CFD Administrator” means an official of the City, or designee thereof, responsible for determining the Annual Special Tax Requirement, and otherwise providing for the levy and collection of the Special Taxes.

“CFD No. 2024-2” means Community Facilities District No. 2024-2 (Larkspur Lagoon Bulkhead Replacement Project) of the City of Larkspur, established by the City Council pursuant to the Act.

“CFD No. 2024-2 Bonds” means bonds or other Debt (as defined in section 53317 of the Act), whether in one or more series, issued by CFD No. 2024-2, or assumed by, or issued by the City for CFD No. 2024-2 under the Act, and secured by pledge of the Special Taxes.

“City” means the City of Larkspur, California.

“City Council” means the City Council of the City, acting as the legislative body of CFD No. 2024-2.

“Construction Completion Date” means the date upon which the City Council adopts a resolution accepting a “Certificate of Completion” relating to the construction of the Authorized Facilities. Such certificate shall signify that the construction of the Authorized Facilities has been completed.

“County” means the County of Marin, California.

“Debt Service” means for each Debt Year, the total amount of principal and interest and premium, if any, due on any Outstanding CFD No. 2024-2 Bonds.

“Debt Year” means the twelve (12) month period ending on the second debt service payment date of each calendar year.

“Exempt Property” means all property located within the boundaries of CFD No. 2024-2 which is exempt from the Special Tax pursuant to the Act or Section E below.

“Fiscal Year” means the period starting July 1 and ending on the following June 30.

“GIS” or “Geographic Information System” means a system designed to capture, store, manipulate, analyze, manage, and present spatial or geographic data.

“Indenture” means the indenture, fiscal agent agreement, resolution, or other instrument pursuant to which CFD No. 2024-2 Bonds are issued, as modified, amended, and/or supplemented from time to time, and any instrument replacing or supplementing the same.

“Maximum Annual Debt Service” means as of the date of calculation the highest principal and interest payment requirements with respect to all Outstanding CFD No. 2024-2 Bonds for any succeeding Bond Year for which the Special Tax has not yet been submitted to the County tax roll.

“Maximum Special Tax” means the Maximum Special Tax, determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.

“Open Space Property” means property within the boundaries of CFD No. 2024-2 which (i) has been irrevocably offered for dedication as open space to the federal government, the State, the County, the City, or any other public agency, or (ii) is encumbered by an easement or other restriction required by the City limiting the use of such property to open space.

“Outstanding CFD No. 2024-2 Bonds” means all CFD No. 2024-2 Bonds which are outstanding under and in accordance with the provisions of the Indenture.

“Property Owner Association” or “POA” means any duly constituted property owner association. As used in this definition, a Property Owner Association includes any home-owner association, condominium owner association, master or sub-association or non-residential owner association.

“Property Owner Association Property” means any property within the boundaries of CFD No. 2024-2 which is owned by a Property Owner Association.

“Proportionately” means that the ratio of the actual Special Tax levied in any Fiscal Year to the Maximum Special Tax authorized to be levied in that Fiscal Year is equal for all classification of Parcels.

“Public Property” means any property within the boundaries of CFD No. 2024-2 which (i) is owned by a public agency, or (ii) has been irrevocably offered for dedication to a public agency. For purposes of this definition, a public agency includes the federal government, the State, the County, the City, school districts, or any other governmental agency.

“Rate and Method of Apportionment” means this Rate and Method of Apportionment of Special Taxes for CFD No. 2024-2.

“Residential Property” means, in any Fiscal Year, all improved Assessor’s Parcels used or occupied, or intended to be used or occupied, for residential purposes. Once an Assessor’s Parcel has been classified as Residential Property, such classification shall not change.

“Special Tax(es)” means the special tax or special taxes to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property within CFD No. 2024-2 to fund the Annual Special Tax Requirement.

“State” means the State of California.

“Surplus Improvement Fund Bond Redemption Date” means, following the Construction Completion Date, the next interest payment date for the CFD No. 2024-2 Bonds upon which surplus monies in the Improvement Fund may be used to redeem a portion of the Outstanding CFD No. 2024-2 Bonds.

“Taxable Property” means all the Assessor’s Parcels within the boundaries of CFD No. 2024-2 that are not exempt from the Special Tax pursuant to law or Section E below.

“Taxable Public Property” means all Assessors Parcels of Public Property that are not exempt pursuant to Section E herein.

“Trustee” means the trustee or fiscal agent or paying agent acting as such under the applicable Indenture.

“Welfare Exempt Property” means, in any Fiscal Year, all Parcels within the boundaries of CFD No. 2024-2 that (a) have been granted a welfare exemption by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code indicated in the Assessor’s Data finalized as of January 1 of the previous Fiscal Year, and (b) are exempt from the Special Tax pursuant to Section 53340(c) of the Act. Pursuant to Section 53340(c) of the Act, after the issuance of CFD No. 2024-2 Bonds any Assessor’s Parcels that receives a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code shall not be classified as Welfare Exempt Property and will be subject to the Special Tax.

B. ANNUAL DATA FOR THE LEVY OF SPECIAL TAXES

Each Fiscal Year, the CFD Administrator shall determine the Assessor’s Parcel Numbers for all Taxable Property within CFD No. 2024-2 for the then-current Fiscal Year. The CFD Administrator shall also determine the Annual Special Tax Requirement and the Maximum Special Tax for each Assessor’s Parcel of Taxable Property for the then-current Fiscal Year.

C. MAXIMUM SPECIAL TAX RATES  

1. The Special Tax for Taxable Property shall be based on the Bulkhead Length of each Assessor’s Parcel. Refer to Attachment A, hereto, for the Maximum Special Tax for each Assessor’s Parcel of Taxable Property at the time of formation of CFD No. 2024-2.

2. As soon as practicable after the Surplus Improvement Fund Bond Redemption Date, if any proceeds of CFD No. 2024-2 Bonds have been redeemed from surplus amounts in the Improvement Fund, the Maximum Special Tax for each Assessor’s Parcel of Taxable Property, as shown in Attachment A, hereto, shall be reduced by performing the following steps:

   1. Determine the Maximum Annual Debt Service on the Outstanding CFD No. 2024-2 Bonds after the Surplus Improvement Fund Bond Redemption Date (the “New Maximum Annual Debt Service”).
   2. Multiply the New Maximum Annual Debt Service by 0.10 (the “Debt Service Coverage”).
   3. Determine the highest anticipated Administrative Expenses for the remaining Bond Years (the “Administrative Costs”).
   4. Add the New Maximum Annual Debt Service, the Debt Service Coverage and the Administrative Costs (the “Revenue Requirement”).
   5. Determine each Parcel’s share of the Maximum Special Tax by dividing the Maximum Special Tax for that Parcel by the total Maximum Special Tax for all Parcels in CFD No. 2024-2 (the “Tax Share”).
   6. Multiply the Revenue Requirement by the Tax Share for each Assessor’s Parcel of Taxable Property (the “Reduced Maximum Special Tax”).

   After such reduction to the Maximum Special Taxes, the CFD Administrator shall complete the Certificate of Reduction in Maximum Special Taxes in the form of Attachment B, hereto, and file such certificate with the City.

   If the Maximum Special Taxes are not to be reduced, the CFD Administrator shall complete the Certificate of No Reduction in Maximum Special Taxes in the form of Attachment C, hereto, and file such certificate with the City.

3. If a Parcel or Parcels of Taxable Property is/are subdivided, consolidated, or otherwise reconfigured, the Maximum Special Tax shall be assigned to each new Parcel created by such subdivision, consolidation, or reconfiguration as follows:
   1. Determine the total Maximum Special Tax of the old Parcel or Parcels of Taxable Property that has/have been subdivided, consolidated, or otherwise reconfigured (the “Prior Maximum Special Tax”).
   2. Determine the Bulkhead Length of each new Parcel created by the subdivision, consolidation, or reconfiguration. Determination of the Bulkhead Length of each such Parcel shall be made via survey by the City Engineer of the City, or its designee.
   3. Sum the Bulkhead Length of each new Parcel created by the subdivision, consolidation, or reconfiguration (the “Total New Bulkhead Length”).
   4. Determine the proportion of the Total New Bulkhead Length attributable to each new Parcel or Parcels of Taxable Property created by the subdivision, consolidation, or reconfiguration by dividing the Bulkhead Length of each new Parcel created by the subdivision, consolidation, or reconfiguration by the Total New Bulkhead Length (the “New Bulkhead Length Percentage)”.
   5. Multiply the New Bulkhead Length Percentage for each new Parcel or Parcels of Taxable Property created by the subdivision, consolidation, or reconfiguration by the Prior Maximum Special Tax to determine the new Maximum Special Tax for each new Parcel or Parcels of Taxable Property created by the subdivision, consolidation, or reconfiguration (the “New Maximum Special Tax”).

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAXES

 Commencing with Fiscal Year 2026/27 and for each following Fiscal Year, the CFD Administrator shall determine the Annual Special Tax Requirement and shall levy the Special Tax until the amount of the Special Tax levied equals the Annual Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows:

First: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Residential Property at 100% of the applicable Maximum Special Tax for Residential Property to satisfy the Annual Special Tax Requirement.

Second: If additional monies are needed to satisfy the Annual Special Tax Requirement after the first step has been completed, then the Special Tax shall be levied Proportionately on all Taxable Public Property at a rate up to 100% of the Maximum Special Tax for Taxable Public Property to satisfy the Annual Special Tax Requirement.

E.         EXEMPTIONS

1. No Special Tax shall be levied on up to 10.01 feet of Bulkhead Length of Public Property. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which property becomes Public Property.
2. Public Property, that is not exempt from the Special Tax under this section, or pursuant to the Act, shall be classified as Taxable Public Property. Taxable Public Property shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the second step in Section D above, at up to 100% of the applicable Maximum Special Tax for Taxable Public Property.
3. No Special Tax shall be levied on any Assessor’s Parcel in any Fiscal Year in which such Assessor’s Parcel is classified as Welfare Exempt Property; however, after the issuance of CFD No. 2024-2 Bonds, any Assessor’s Parcels that was subject to the Special Tax prior to the issuance of the CFD No. 2024-2 that receives a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code shall not be classified as Welfare Exempt Property and will remain subject to the Special Tax.

F.         APPEAL OF SPECIAL TAX LEVY

Any property owner may file a written appeal of the Special Tax with the CFD Administrator claiming that the amount or application of the Special Tax is not correct with respect to one or more specific Assessor’s Parcels. The appeal must be filed not later than one calendar year after having paid the Special Tax that is disputed, and the appellant must be current in all payments of the Special Taxes theretofore levied on the Assessor’s Parcel(s). In addition, during the term of the appeal process, all Special Taxes levied must be paid for the subject Assessor’s Parcel(s) prior to delinquency.

The appeal must specify the reasons why the appellant claims the Special Tax levy is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination.

If the property owner disagrees with the CFD Administrator’s decision relative to the appeal, the owner may then file a written appeal with the City Council whose subsequent decision shall be final and binding on all interested parties. If the decision of the CFD Administrator or subsequent decision by the City requires the Special Tax to be modified or changed in favor of the property owner, then an adjustment shall be made to credit future Special Taxes.

This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to filing any legal action by such owner.

G. INTERPRETATION OF RATE AND METHOD OF APPORTIONMENT

 The City may, by resolution or ordinance, interpret, clarify and/or revise this Rate and Method of Apportionment to correct any inconsistency, vagueness, or ambiguity as it relates to the Special Taxes, method of apportionment, classification of Assessor’s Parcels, or any definition used herein, as long as once CFD No. 2024-2 Bonds have been issued such correction does not materially adversely affect the levy and collection of Special Taxes on any Assessor’s Parcel needed to repay the CFD No. 2024-2 Bonds. In addition, the interpretation and application of any section of this document shall be at the CFD Administrator’s discretion.

H. MANNER OF COLLECTION

The Special Taxes shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, that the CFD Administrator may directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner if needed to meet the financial obligations of CFD No. 2024-2.

I. PREPAYMENT OF SPECIAL TAX

The Special Tax obligation of an Assessor's Parcel of Residential Property or Taxable Public Property may be prepaid and permanently satisfied, or partially prepaid, as described in Sections I.1 and I.2, below, only after the Construction Completion Date and, after the Surplus Improvement Fund Bond Redemption Date or determination by the CFD Administrator that no surplus proceeds of the CFD No. 2024-2 Bonds in the improvement fund for the CFD No. 2024-2 Bonds  will be used to redeem CFD No. 2024-2 Bonds.

1. Prepayment in Full

The Special Tax obligation of an Assessor's Parcel of Residential Property or Taxable Public Property may be prepaid and permanently satisfied as described herein, provided that there are no delinquent installments of the Special Tax with respect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Special Tax obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 45 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount for such Assessor's Parcel. Prepayment must be made not less than 75 days prior to the next occurring interest payment date of the Outstanding CFD No. 2024-2 Bonds, if any. Proceeds of such prepayment may be given to the Trustee pursuant to the Indenture. The CFD Administrator may charge the property owner requesting a prepayment calculation a fee for providing this service.

The Special Tax Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below):

Bond Redemption Amount
  plus    Interest Amount
  plus    Administrative Fees and Expenses
  less     Reserve Fund Credit
  less     Capitalized Interest Credit
Total:  equals    Special Tax Prepayment Amount

As of the proposed date of prepayment, the Special Tax Prepayment Amount (defined below) shall be calculated by the CFD Administrator as follows:

Step Number:

1. Confirm that no Special Tax delinquency applies to such Assessor’s Parcel, and if delinquencies are applicable compute all amounts due, including interest and penalties.
2. For Assessor’s Parcels of Residential Property and Taxable Public Property compute the Maximum Special Tax.
3. Divide the Maximum Special Tax computed pursuant to Step 2 by the total estimated Maximum Special Tax for CFD No. 2024-2 based on the Special Tax which could be charged in the current Fiscal Year (the “Maximum Special Tax Percentage”).
4. Multiply the Maximum Special Tax Percentage by the Outstanding CFD No. 2024-2 Bonds to compute the principal amount of Outstanding CFD No. 2024-2 Bonds to be redeemed (the “Bond Redemption Amount”).
5. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding CFD No. 2024-2 Bonds (the “Interest Amount”).
6. Verify the administrative fees and expenses, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming the Outstanding CFD No. 2024-2 Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the “Administrative Fees and Expenses”).
7. If reserve funds for the Outstanding CFD No. 2024-2 Bonds held under the Indenture, if any, are at or above 100% of the then reserve requirement (as required by the Indenture) on the prepayment date, a reserve fund credit shall be calculated as a reduction in the applicable reserve requirement for the Outstanding CFD No. 2024-2 Bonds to be redeemed pursuant to the prepayment (the “Reserve Fund Credit”). No Reserve Fund Credit shall be granted if reserve funds are below 100% of the applicable reserve requirement on the prepayment date or if the Reserve Fund is satisfied by a credit instrument rather than cash funded.
8. If any capitalized interest for the Outstanding CFD No. 2024-2 Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the Maximum Special Tax Percentage by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the “Capitalized Interest Credit”).
9. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to Steps 4, 5 and 6 less the amounts computed pursuant to Steps 7 and 8 (the “Prepayment Amount”).
10. The amounts computed pursuant to Steps 4 and 5 shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding CFD No. 2024-2 Bonds or make Debt Service payments. The amount computed pursuant to Step 6 shall be retained by the City for the payment of Administrative Fees and Expenses.

The Special Tax Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Outstanding CFD No. 2024-2 Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of Outstanding CFD No. 2024-2 Bonds or to make Debt Service payments.

Current year Special Taxes that are not yet paid will remain outstanding and will be collected in the manner billed. With respect to any Assessor's Parcel that is prepaid, the CFD Administrator shall cause a suitable notice to be recorded in compliance with the Act to indicate the prepayment of the Special Tax and the obligation of such Assessor's Parcel satisfied.

Notwithstanding the foregoing, no prepayment will be allowed unless the Maximum Special Tax that may be levied on Taxable Property both prior to and after the proposed prepayment is at least 1.10 times the Maximum Annual Debt Service on all Outstanding CFD No. 2024-2 Bonds, including annual Administrative Expenses, as reasonably estimated by the CFD Administrator.

2. Prepayment in Part

The Special Tax obligation of an Assessor's Parcel of Residential Property or Taxable Public Property may be partially prepaid as described herein, provided that there are no delinquent installments of the Special Tax with respect to such Assessor's Parcel at the time of prepayment. The amount of the prepayment shall be calculated as in Section I.1; except that a partial prepayment shall be calculated by the CFD Administrator according to the following formula:
PP = P_E x F.
These terms have the following meaning:
PP = the partial prepayment
P_E =  the Prepayment Amount calculated according to Section I.1
F =    the Prepayment Percentage
The Special Tax partial prepayment amount must be redeemed in increments of $5,000 and must be sufficient to redeem at least one $5,000 increment of CFD No. 2024-2 Bonds.
The owner of any Assessor’s Parcel who desires such partial prepayment shall notify the CFD Administrator of such owner’s intent to partially prepay the Special Tax and the percentage or dollar amount by which the Special Tax shall be prepaid. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax for an Assessor’s Parcel within 45 days of the request and may charge a fee for providing this service. Prepayment must be made not less than 75 days prior to the next occurring interest payment date of the Outstanding CFD No. 2024-2 Bonds, if any. Proceeds of such prepayment may be given to the Trustee pursuant to the Indenture. With respect to any Assessor’s Parcel that is partially prepaid, the CFD Administrator shall (i) distribute the prepayment funds remitted according to Section I.2, and (ii) indicate in the records of CFD No. 2024-2 that there has been a partial prepayment of the Special Tax and that a portion of the Special Tax with respect to such Assessor’s Parcel, equal to the outstanding percentage (1.00 - F) of the remaining Maximum Special Tax, shall continue to be levied on such Assessor’s Parcel pursuant to Section D.

J. TERM

The Special Tax shall be levied and collected as needed to fund the Annual Special Tax Requirement for up to 35 years beginning in Fiscal Year 2026/27. In any event no Special Tax shall be levied for CFD. No. 2024-2 after the 2060/61 Fiscal Year.

Argument in favor of Measure A

No argument in favor of Measure A was filed.

Argument against Measure A

No argument against Measure A was filed.

COMMUNITY FACILITIES DISTRICT NO. 2024-2 (LARKSPUR LAGOON BULKHEAD REPLACEMENT PROJECT) OF THE CITY OF LARKSPUR INITIAL MAXIMUM SPECIAL TAXES

COMMUNITY FACILITIES DISTRICT NO. 2024-2 (LARKSPUR LAGOON BULKHEAD REPLACEMENT PROJECT) OF THE CITY OF LARKSPUR CERTIFICATE OF REDUCTION IN MAXIMUM SPECIAL TAXES

1. Pursuant to Section C.2 of the Rate and Method of
   Apportionment attached to the Notice of Special Tax
   Lien recorded in the Official Records of the County of
   Marin as Document No. _________ on the ____ day of
   _________, 20__, the CFD Administrator hereby reduces
   the Maximum Special Tax for Taxable Property.
2. Table B-1 on the following pages shows the Maximum
   Special Tax for each Parcel of Taxable Property after such
   reduction.
3. Upon execution of the certificate by the City, the CFD
   Administrator shall cause an amended notice of special
   tax lien for CFD No. 2024-2 to be recorded reflecting the
   modifications set forth herein.
4. By execution hereof, the undersigned acknowledges,
   on behalf of the City and CFD No. 2024-2, receipt of this
   certificate and modification of the Rate and Method of
   Apportionment as set forth in this certificate.

Submitted

CFD ADMINISTRATOR

By: _________________________________________
Date as of: _________________________________

Community Facilities District No. 2024-2 (Larkspur Lagoon Bulkhead Replacement Project) of the City of Larkspur

By: _________________________________________
Date as of: _________________________________

COMMUNITY FACILITIES DISTRICT NO. 2024-2 (LARKSPUR LAGOON BULKHEAD REPLACEMENT PROJECT) OF THE CITY OF LARKSPUR CERTIFICATE OF NO REDUCTION IN MAXIMUM SPECIAL TAXES

1. The Maximum Special Taxes shown in Attachment A, hereto, shall remain in effect and not be reduced pursuant to Section C.2 or the Rate and Method of Apportionment.

Submitted

CFD ADMINISTRATOR

By: _________________________________________
Date as of: _________________________________

Community Facilities District No. 2024-2 (Larkspur Lagoon Bulkhead Replacement Project) of the City of Larkspur

By: _________________________________________
Date as of: _________________________________