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HomeMy WebLinkAboutResolution - 3579 STATE OF CALIFORNIA ) RESOLUTION NO. 3579 COUNTY OF RIVERSIDE)ss CITY OF SAN JACINTO ) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 2015-1 OF THE CITY OF SAN JACINTO, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND ESTABLISHING THE BOUNDARIES THEREOF WHEREAS, on May 5, 2015, the City Council (the "City Council") of the City of San Jacinto (the "City") has heretofore adopted Resolution No. 3568 stating that a proposed community facilities district to be known as "Community Facilities District No. 2015-1 of the City of San Jacinto (Supplemental Special Tax to Rancho San Jacinto, Phase 2), County of Riverside, State of California" (the "Community Facilities District"), is proposed to be established pursuant to Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the "Mello-Roos Community Facilities Act of 1982" (the "Act'), and fixing the time and place for a public hearing on the formation of the Community Facilities District; and WHEREAS, it is proposed (i) that the Community Facilities District be formed for the purposes of (a) the payment of a portion of the principal of and interest on a portion of special tax bonds issued with respect to CFD No. 2002-1, as described in the Rate and Method of Apportionment, and incidental expenses thereof and (b) incidental expenses including, but not limited to, all costs associated with the formation of the proposed community facilities district, issuance of the bonds thereof, the determination of the amount of and collection of taxes, and costs otherwise incurred in order to carry out the authorized purposes of the community facilities district and (ii) that the Community Facilities District be authorized to issue bonds and incur a bonded indebtedness for the purpose of financing items (a) and (b) above in the aggregate principal amount not to exceed $5,500,000; and WHEREAS, notice was published and mailed to the owner of the property in the Community Facilities District as required by law relative to the intention of the City Council to establish the Community Facilities District, the levy of special taxes therein, the provision of public facilities therein and the incurring of a bonded indebtedness by the Community Facilities District, and of the time and place of the public hearing; and WHEREAS, on June 18, 2015, the City Council conducted the public hearing as required by law relative to the formation of the Community Facilities District, the levy of special taxes therein to finance the payment of a portion of the debt service on the San Jacinto Financing Authority 2002 Local Agency Revenue Bonds, Series A (Tranches A through D) (the "2002 Bonds"), and the incurring of a bonded indebtedness by the Community Facilities District; and 24438.70020\9786514.4 WHEREAS, prior to the commencement of the public hearing there was filed with the City Council a report (the "Report") containing a description of the public facilities required to meet the needs of the Community Facilities District, and an estimate of the costs of such facilities, as required by Section 53321.5 of the California Government Code; and WHEREAS, at the public hearing all persons desiring to be heard on all matters pertaining to the formation of the Community Facilities District, the levy of the special taxes therein, the provision of public facilities therein, and the incurring of the bonded indebtedness thereby were heard, and a full and fair hearing was held; and WHEREAS, at the public hearing evidence was presented to the City Council on the matters before it, and the City Council at the conclusion of the hearing was fully advised as to all matters relating to the formation of the Community Facilities District, the levy of the special taxes therein, the provision of public facilities therein and the incurring of the bonded indebtedness thereby; and WHEREAS, the City Council may, therefore, proceed to establish the Community Facilities District; NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL OF THE CITY OF SAN JACINTO AS FOLLOWS: Section 1. Findings. The City Council finds as follows: (a) All of the preceding recitals are true and correct; (b) On June 18, 2015, pursuant to notice thereof duly given as provided by law, the City Council conducted a public hearing with respect to the formation of the Community Facilities District, the incurring of a bonded indebtedness by and for the Community Facilities District, the annual levying of specified special taxes on the taxable property within the Community Facilities District to pay principal of and interest on bonds to be issued by and for the Community Facilities District to finance a portion of debt service on the special tax bonds which are described in Section 3 hereof; (c) The boundary map of the Community Facilities District was recorded on May 20, 2015, pursuant to Sections 3111 and 3113 of the California Streets and Highways Code in Book 78 of Maps of Assessment and Community Facilities Districts, at page 32, and as Instrument No. 2015-0210517 in the official records of the County of Riverside; (d) All prior proceedings with respect to the formation of the Community Facilities District prior to and during the hearing with respect to the formation of the Community Facilities District which was conducted by the City Council on June 18, 2015, were valid and in conformity with the requirements of the Act; (e) No written protests were received, at or prior to the time of the hearing, against the formation of the Community Facilities District, or the levying of the 24438.70020\9786514.4 -2- special taxes, or the incurring of a bonded indebtedness by the Community Facilities District, or the furnishing of specified types of public facilities or services, and the special taxes, facilities and services have not, therefore, been eliminated by majority protest pursuant to Section 53324 of the California Government Code; (f) The City Council is, therefore, authorized to adopt a resolution of formation pursuant to Section 53325.1 of the California Government Code for the formation of Community Facilities District No. 2015-1 of the City of San Jacinto (Supplemental Special Tax to Rancho San Jacinto, Phase 2), County of Riverside, State of California, and the Community Facilities District should be established; and (g) Twelve persons have not been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close of the public hearing on June 18, 2015; and, pursuant to Section 53326 of the California Government Code, the vote in the special elections provided for in Section 10 hereof shall be by the landowners of the Community Facilities District whose property would be subject to the special taxes if they were levied at the time of the elections, and each landowner shall have one vote for each acre, or portion thereof, which he or she owns within the Community Facilities District which would be subject to the proposed special taxes if they were levied at the time of the elections. Section 2. Formation of District. Community Facilities District No. 2015-1 of the City of San Jacinto (Supplemental Special Tax to Rancho San Jacinto, Phase 2), County of Riverside, State of California, is hereby established. The boundaries of the Community Facilities District are shown and described on the map entitled "Boundaries of Community Facilities District No. 2015-1 (Supplemental Special Tax to Rancho San Jacinto, Phase 2) of the City of San Jacinto, County of Riverside, State of California," which is on file with the City Clerk (the "Clerk"), and those boundaries are hereby established. Section 3. Types of Facilities and Incidental Expenses. (a) The cost of payment of a portion of the principal of and interest on a portion of special tax bonds issued with respect to CFD No. 2002-1 as described in the Rate and Method of Apportionment, and incidental expenses thereof; and (b) The incidental expenses which will be incurred are: all costs associated with the formation of the proposed community facilities district, issuance of the bonds thereof, the determination of the amount of and collection of taxes, and costs otherwise incurred in order to carry out the authorized purposes of the community facilities district. Section 4. Special Taxes. Except where funds are otherwise available, special taxes sufficient to pay for all public facilities and to pay the principal of and interest on the bonds of the proposed community facilities district and the annual administrative expenses of the City and the proposed community facilities district in determining, apportioning, levying and collecting such special taxes, and in paying the 244 3 8.70020\97 86514.4 -3- principal of and interest on such bonds and the costs of registering, exchanging and transferring such bonds, secured by the recordation of a continuing lien against all taxable or nonexempt property in the proposed community facilities district, shall be annually levied within the proposed community facilities district. The rate and method of apportionment of special taxes to be levied on parcels of taxable property to pay the principal of and interest of the bonds of the proposed community facilities district which may be issued and sold to finance a portion of debt service on the CFD 2002-1 Bonds shall be as set forth in Exhibit "A" attached hereto and by this reference made a part hereof. The maximum amounts of special taxes which may be levied in any year on parcels within the proposed community facilities district which are used for private residential purposes ("Residential Property") are specified in dollar amounts in Exhibit "A" hereto. Special taxes shall not be levied on any Residential Property to pay the principal of and interest on the outstanding bonds of the community facilities district after the tax or fiscal year beginning on July 1, 2015 and ending on June 30, 2038, and that fiscal year shall be the last tax year in which special taxes shall be levied on Residential Property for such purpose. Under no circumstance shall the special taxes levied on any Residential Property be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within the proposed community facilities district by more than 10 percent of the prior year's levy. The conditions under which the obligation to pay the special taxes may be prepaid and permanently satisfied are as set forth in Exhibit "A" hereto. Pursuant to Section 53340 of the California Government Code, said special taxes shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the special taxes shall attach to all non-exempt real property in the proposed community facilities district and that lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the special taxes ceases. Section 5. Exempt Property. Pursuant to Section 53340 of the California Government Code, and except as provided in Section 53317.3 of said Code, properties of entities of the state, federal, and local governments shall be exempt from the levy of special taxes. Section 6. Necessity. The City Council finds that the proposed use of the special taxes are necessary. Section 7. Report. The Report is hereby approved and is made a part of the record of the public hearing regarding the formation of the Community Facilities 2443 8.70020\9 7 86 5 14.4 -4- District, and is ordered to be kept on file with the City Clerk as part of the transcript of these proceedings. Section 8. Repayment of Funds Advanced or Work-in-Kind. Pursuant to Section 53314.9 of the California Government Code, the City Council proposes to accept advances of funds or work-in-kind from private persons or private entities and to provide, by resolution, for the use of those funds or that work-in-kind for any authorized purpose, including but not limited to, paying any costs incurred by the City in creating the proposed community facilities district, and to enter into an agreement, by resolution, with the person or entity advancing the funds or work-in-kind to repay funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work- in-kind, as determined by the City Council. Section 9. Prohibition of Owner Contracts. Pursuant to Section 53329.5 of the California Government Code, the City Council finds that the public interest will not be served by allowing the owners of property within the Community Facilities District to enter into a contract in accordance with subdivision (a) of that section, and that such owners shall not be permitted to elect to perform the work and enter into a written contract with the City Council for the construction of the public facilities pursuant to said Section 53329.5. Section 10. Description of Voting Procedures. Except as otherwise provided in this section, the consolidated special elections on the propositions identified below shall be conducted by the City Clerk in accordance with the provisions of the California Elections Code governing mail ballot elections of community facility districts, insofar as they may be applicable. The voting procedures to be followed by the City Clerk in conducting the consolidated special elections on (i) the proposition with respect to the Community Facilities District incurring bonded indebtedness in an amount not to exceed $5,500,000, (ii) the proposition with respect to the levy of special taxes on the land within the Community Facilities District to pay a portion of the principal of and interest on the San Jacinto Financing Authority 2002 Local Agency Revenue Bonds, Series A (Tranches A through D) (the "2002 Bonds") may be issued and sold to finance such payment, or to pay or accumulate funds for paying the costs of such payment, and (iii) the proposition with respect to establishing an appropriations limit for the Community Facilities District in the amount of $1,000,000 shall be as follows: (a) The consolidated special elections shall be held on the earliest date, following the adoption by the City Council of this resolution, the resolution determining the necessity for the Community Facilities District to incur a bonded indebtedness pursuant to Section 53351 of the California Government Code, and a resolution pursuant to Section 53326 of said Code submitting to the qualified electors of the Community Facilities District the propositions listed above, upon which such elections can be held pursuant to said Section 53326 which may be selected by the City Council, or such earlier date as the owner of the land within the Community Facilities District and the City Clerk agree and concur is acceptable. 24438.70020\9786514.4 -5- (b) Pursuant to said Section 53326, the consolidated special elections may be held earlier then 90 days following the close of the public hearing if the qualified electors of the Community Facilities District waive the time limits for conducting the elections set forth in said Section 53326 by unanimous written consent, and the City Clerk concurs in such earlier election date as shall be consented to by the qualified electors. (c) Pursuant to said Section 53326, ballots for the consolidated special elections shall be delivered to the qualified electors by the City Clerk by mail with return postage prepaid, or by personal service. (d) Pursuant to applicable sections of the California Elections Code governing the conduct of mail ballot elections of community facility districts, and specifically Division 4 (commencing with Section 4000) of the California Elections Code with respect to elections conducted by mail, the City Clerk shall mail or deliver to each qualified elector an official ballot in a form specified by the City Council in the resolution calling and consolidating the consolidated special elections, and shall also mail or deliver to all such qualified electors a ballot pamphlet and instructions to voter, including a sample ballot identical in form to the official ballot but identified as a sample ballot, a statement pursuant to Section 9401 of said Code, an impartial analysis, pursuant to Section 9313 of said Code, with respect to the ballot propositions contained in the official ballot, arguments and rebuttals, if any, pursuant to Sections 9314 to 9317, inclusive, of said Code, a return identification envelope with prepaid postage thereon addressed to the City Clerk for return of the voted official ballots, and a copy of this resolution; provided, however, that such statement, analysis and arguments may be waived with the unanimous consent of all the landowners, and in such event a finding regarding such waivers shall be made in the resolution adopted by the City Council calling the consolidated special elections. (e) The official ballot to be mailed or delivered by the City Clerk to each landowner-voter shall have printed or typed thereon the name of the landowner-voter and the number of votes to be voted by the landowner-voter, and shall have appended to it a certification to be signed by the person voting the official ballot which shall certify that the person signing the certification is the person who voted the official ballot, and if the landowner-voter is other than a natural person, that he or she is an officer of or other person affiliated with the landowner-voter entitled to vote such official ballot, that he or she has been authorized to vote such official ballot on behalf of the landowner- voter, that in voting such official ballot it was his or her intent, as well as the intent of the landowner-voter, to vote all votes to which the landowner-voter is entitled based on its land ownership on the propositions set forth in the official ballot as marked thereon in the voting square opposite each such proposition, and further certifying as to the acreage of the landowner-voter's land ownership within the Community Facilities District. (f) The return identification envelope mailed or delivered by the City Clerk to each landowner-voter shall have printed or typed thereon the following: (i) the name of the landowner, (ii) the address of the landowner, (iii) a declaration under 2443 8.70020\9 7 865 14.4 -6- penalty of perjury stating that the voter is the landowner or the authorized representative of the landowner entitled to vote the enclosed ballot, and is the person whose name appears on the identification envelope, (iv) the printed name and signature of the voter, (v) the address of the voter, (vi) the date of signing and place of execution of said declaration, and (vii) a notice that the envelope contains an official ballot and is to be opened only by the City Clerk. (g) The instruction to voter form to be mailed or delivered by the City Clerk to the landowner-voters shall inform them that the official ballots shall be returned to the City Clerk properly voted as provided thereon and with the certification appended thereto properly completed and signed in the sealed return identification envelope with the certification thereon completed and signed and all other information to be inserted thereon properly inserted by the time on the date of the elections specified by the City Council in the resolution calling the special elections; provided that the election shall be closed before such hour if the City Clerk determines that all of the qualified voters have voted. (h) Upon receipt of the return identification envelopes which are returned prior to the voting deadline on the date of the elections, the City Clerk shall canvass the votes cast in the consolidated special elections, and shall file a statement with the City Council as to the results of such canvass and the election on each proposition set forth in the official ballot. The procedures set forth in this section for conducting the consolidated special elections, if they are held, may be modified as the City Council may determine to be necessary or desirable by a resolution subsequently adopted by the City Council. PASSED, APPROVED and ADOPTED this 18tt' day of June, 2015, by the following vote: AYES: Bartel, Ledezma, Miller, Ruiz NAYS: None ABSENT: Kotyuk ABSTAIN: None Cit of San acinto Crystal Ftuiz, Mayor ATTEST: Richard Miller, City Clerk 24439.70010\9786514 4 -7- CERTIFICATION I, Richard Miller, City Clerk of the City of San Jacinto, certify that the foregoing resolution was adopted by the City Council of the City of San Jacinto at a special meeting held on the 18`h day of June, 2015, by the following vote: AYES: Bartel. Ledezma, Miller, Ruiz NAYS: None ABSENT: Kotyuk ABSTAINED:None IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Jacinto this 181h day of June, 2015. Richard Miller, City Clerk 24438.70020\9786514.4 -8- EXHIBIT "A" RATES AND METHOD OF APPORTIONMENT FOR COMMUNITY FACILITIES DISTRICT NO. 2015-1 OF THE CITY OF SAN JACINTO (SUPPLEMENTAL SPECIAL TAX TO RANCHO SAN JACINTO PHASE 2) A Special Tax as hereinafter defined shall be levied on each Assessor's Parcel in Community Facilities District No. 2015-1 of the City of San Jacinto (Supplemental Special Tax to Rancho San Jacinto Phase 2) ("CFD No. 2015-1") and collected each Fiscal Year commencing in Fiscal Year 2015-2016, in an amount determined by the City Council through the application of the appropriate Special Tax for "Developed Property," "Taxable Property Owner Association Property," "Taxable Public Property," and "Undeveloped Property," as described below. All of the real property in CFD No. 2015- 1, 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 meanings: "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded County parcel map. If the preceding maps for a land area are not available, the Acreage of such land area may be determined utilizing GIS data. The square footage of an Assessor's Parcel is equal to the Acreage multiplied by 43,560. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2015-1: the costs of computing the Special Tax and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Tax (whether by the County or otherwise); the costs of remitting the Special Tax to the trustee; the costs of the trustee (including reasonable costs of its legal counsel) in the discharge of the duties required of it; the costs associated with responding to public inquiries regarding the Special Tax; the costs of the City, CFD No. 2015-1 or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2015-1 for any other administrative purposes of CFD No. 2015-1, including attorney's fees and other costs related to the ongoing operation of CFD No. 2015- 1. 24438.70020\9786514.4 A-1 "Assessor's Parcel" or "Assessor's Parcel Number" 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 Assessor of the County designating parcels by Assessor's Parcel Number. "Authority Bonds" means the $17,841,416.76 original principal amount of San Jacinto Financing Authority 2002 Local Agency Revenue Bonds, Series A (Tranches A through D), dated as of October 1, 2002. "Bond Share Allocation" means the amount of debt service on the Authority Bonds payable from Special Taxes levied within CFD No. 2015-1. The Bond Share Allocation shall be calculated by determining the debt service payable on the Authority Bonds for such fiscal year less all Special Taxes levied within CFD No. 2002-1 allocated towards payment of debt service of the Authority Bonds for such fiscal year. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD No. 2002-1" means the Community Facilities District No. 2002-1 (Rancho San Jacinto, Phase 2) as established on September 10, 2002. "CFD No. 2015-1" means Community Facilities District No. 2015-1 of the City of San Jacinto (Supplemental Special Tax to Rancho San Jacinto Phase 2). "City" means the City of San Jacinto. "City Clerk" means the City Clerk of the City of San Jacinto or his or her designee. "Council" means the City Council of the City, acting as the legislative body of CFD No. 2015-1. "County" means the County of Riverside. "Developed Property" means, for each Fiscal Year, all Taxable Property for which a building permit for new construction was issued after March 1, 2014 and as of March 1 of the previous Fiscal Year. "Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan 24438.70020\9786514.4 A-2 pursuant to California Civil Code 1352 that creates individual lots for which building permits may be issued without further subdivision. "Financing Authority" means the San Jacinto Financing Authority. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Land Use Class" means any of the classes listed in Table 1. "Lot Square Foot" or "Lot Square Footage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded County parcel map. If the preceding maps for a land area are not available, the Lot Square Footage of such land area may be determined utilizing GIS data. The Lot Square Footage of an Assessor's Parcel is equal to the Acreage divided by 43,560. "Maximum Special Tax" means the Maximum Special Tax, determined in accordance with Section C below, which can be levied in any Fiscal Year on any Assessor's Parcel. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a building permit(s) was issued for a non-residential use. "Outstanding Bonds" means all Authority Bonds which are deemed to be outstanding. "Property Owner Association Property" means, for each Fiscal Year, any Assessor's Parcel within the boundaries of CFD No. 2015-1 that is owned by or dedicated to a property owner association, including any master or sub- association. "Proportionately" means for Developed Property that the ratio of the actual Special Tax levy per Lot Square Foot for Residential Property and per Acre for Non-Residential Property to the Maximum Special Tax is equal for all Assessor's Parcels of Developed Property within CFD No. 2015-1. For Undeveloped Property, "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor's Parcels of Undeveloped Property in CFD No. 2015-1, as applicable. For Taxable Property Owner Association Property and Taxable Public Property, "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor's Parcels of Taxable Property Owner Association Property or Taxable Public Property in CFD No. 2015-1 , as applicable. 24438.70020\9786514A A-3 "Public Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 2015-1 that was owned by, irrevocably offered for dedication to, or dedicated to the federal government, the State, the County, the City or any other public agency; provided however that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with its use. To ensure that property is classified as Public Property in the first Fiscal Year after it is acquired by, irrevocably offered for dedication to, or dedicated to a public agency, the property owner shall notify the CFD Administrator in writing of such acquisition, offer, or dedication not later than June 30 of the Fiscal Year in which the acquisition, offer or dedication occurred if (i) such property was acquired by, irrevocably offered for dedication to, or dedicated to a public agency after January 1 but on or before June 30 of such Fiscal Year or (ii) the property is subject to an irrevocable offer for dedication that is not reflected on a recorded tract map. "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units. "Special Tax" means the Special Tax to be levied in each Fiscal Year on each Assessor's Parcel of Developed Property, Undeveloped Property, Taxable Property Owner Association Property, and Taxable Public Property to fund the Special Tax Requirement. t "Special Tax Requirement" means that amount required in any Fiscal Year to meet the needs of CFD No. 2015-1 to: (i) pay the Bond Share Allocation; (ii) pay Administrative Expenses; (iii) pay any amount required to establish or replenish any reserve fund for either (but not both) of the Outstanding Bonds; and (iv) pay for any reasonably anticipated delinquent Special Tax based on the delinquency rate for the Special Tax levied in the previous Fiscal Year; and (vi) less a credit for any funds available to reduce the annual Special Tax levy, as determined by the CFD Administrator. "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No. 2015-1 which are not exempt from the Special Tax pursuant to law or Section E below. "Taxable Property Owner Association Property" means all Assessor's Parcels of Property Owner Association Property that are not exempt pursuant to Section E below. "Taxable Public Property" means all Assessors' Parcels of Public Property that are not exempt pursuant to Section E below. 24438.70020\9786514.4 A-4 "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, all Taxable Property within CFD No. 2015-1 shall be classified as Developed Property, Taxable Property Owner Association Property, Taxable Public Property, or Undeveloped Property and shall be subject to Special Taxes in accordance with the rate and method of apportionment. All Developed Property shall be assigned a Land Use Class of Residential Property or Non-Residential Property. Residential Property shall be assigned to Land Use Class 1 and Non- Residential Property shall be assigned to Land Use Class 2. C. MAXIMUM ANNUAL SPECIAL TAX RATE 1. Special Tax The Special Tax is an annual Special Tax that shall be levied on Developed Property and Undeveloped Property to fund the Special Tax Requirement. (a) Developed Property (i) Maximum Special Tax The Maximum Special Tax for Fiscal Year 2015-2016 for each Land Use Class is shown below in Table 1 . TABLE 1 Maximum Special Tax for Developed Property For Fiscal Year 2015-2016 Community Facilities District No. 2015-1 Maximum Special Land Use Class Description Tax 1 Residential Property $0.66 per Lot Square Foot 2 Non-Residential $28,696.75 per Acre Property (ii) Increase in the Maximum Special Tax 24439,70020\97865144 A-5 On each July 1, commencing on July 1, 2016, the Maximum Special Tax Rates for Developed Property shall be increased by two percent (2%) per Fiscal Year. (iii) Multiple Land Use Classes In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Class. The Maximum Special Tax that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Taxes that can be levied for all Land Use Classes located on that Assessor's Parcel. (b) Undeveloped Property, Taxable Property Owner Association Property, and Taxable Public Property (i) Maximum Special Tax The Maximum Special Tax for Fiscal Year 2015-2016 for Undeveloped Property, Taxable Property Owner Association Property, and Taxable Public Property is $28,696.75 per Acre. (ii) Increase in the Maximum Special Tax On each July 1, commencing on July 1, 2016, the Maximum Special Tax Rates for Undeveloped Property, Taxable Property Owner Association Property, and Taxable Public Property shall be increased by two percent (2%) per Fiscal Year. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2015-2016 and for each following Fiscal Year, the Council shall levy the Special Tax on Developed Property as described under the First Step listed below. Commencing with Fiscal Year 2015-2016, Special Taxes may also be levied as described under the Second and Third Steps listed below, as necessary to satisfy the Special Tax Requirement. First: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property that is Residential Property or Non-Residential Property at up to 100% of the applicable Maximum Special Tax as needed to satisfy the Special Tax Requirement; 2443 8.70020\9 7 8 65 14.4 A-6 Second: If additional monies are needed to satisfy the Special Tax Requirement after the First step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property at up to 100% of the Maximum Special Tax for Undeveloped Property; Third: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, then the Special Tax shall be levied Proportionately on each Assessor's Parcel of Taxable Property Owner Association Property and Taxable Public Property at up to the Maximum Special Tax for Taxable Property Owner Association Property and Taxable Public Property. Further notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent as a consequence of delinquency or default by the owner of any other Assessor's Parcel within CFD No. 2015-1, except for Residential Property whose owners are also delinquent or in default on their Special Tax payments for one or more other properties within CFD No. 2015-1. E. EXEMPTIONS No Special Tax shall be levied on up to 2.6 Acres of Property Owner Association Property or Public Property. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which property becomes Property Owner Association Property or Public Property. However, should an Assessor's Parcel no longer be classified as Property Owner Association Property or Public Property, its tax-exempt status will be revoked. F. APPEALS AND INTERPRETATIONS Any taxpayer may file a written appeal of the Special Tax on his/her property with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During the pendency of an appeal, all Special Tax previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the calculation of the Special Tax 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 CFD Administrator agrees with the appellant, the CFD Administrator shall eliminate or reduce the Special Tax on the appellant's property and/or provide a refund to the appellant. If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has 30 days in which to appeal to the Council by filing a written notice of appeal with the City Clerk, provided that the appellant is current in his/her payments of the Special Tax. The second appeal must specify the reasons for its disagreement with the CFD Administrator's determination. The decision of the Council shall be final. 2443 9.7 0020\97 865 14.4 A-7 Interpretations may be made by the Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment. G. MANNER OF COLLECTION The annual Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that in Fiscal Year 2015-2016 and each Fiscal Year thereafter, CFD No. 2015-1 may directly bill the Special Tax, and may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations. H. TERM OF SPECIAL TAX The Special Tax shall be levied as necessary to fund items listed in the Special Tax Requirement, but under no circumstance shall the Special Tax be levied after Fiscal Year 2037/38. r 2443 8.70020\9 7 8 65 14.4 A-8