Common use of Establishment of CFD Clause in Contracts

Establishment of CFD. City shall use reasonable good efforts to: (a) initiate and diligently pursue proceedings to establish such a Community Facilities District in accordance with the goals and policies in effect as of the Effective Date as set forth in Council Policy 505, April 4, 2019, attached hereto as Exhibit “D” (“Goals and Policies”), and (b) if the establishment of such Community Facilities District is approved by the City Council and the levy of special taxes and the issuance of bonds for or by such a District are approved by the qualified electors of such District, to thereafter levy and collect special taxes and issue bonds of such District in accordance with the Goals and Policies. The bonds of the CFD shall be sized based upon the estimated annual special tax revenues from the CFD at build-out being equal to one-hundred ten percent (110%) of (i) the projected annual gross debt service on any bonds of the CFD, plus (ii) priority annual administrative expenses. Priority annual administrative expenses to be funded from special taxes shall not exceed $75,000.