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HomeMy WebLinkAboutResolution - 3807STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE) ss CITY OF SAN JACINTO ) RESOLUTION NO. 3807 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF SAN JACINTO COMMUNITY FACILITIES DISTRICT NO. 2020-1, ESTABLISHING SUCH COMMUNITY FACILITIES DISTRICT WHEREAS, the City Council of the City of San Jacinto (the "City Council'), has previously adopted a resolution of intention (the "Resolution of Intention") which declared its intention to form a community facilities district and ordered the preparation of a report relating to the initiation of proceedings to create such community facilities district pursuant to the terms and provisions of the "Mello -Roos Community Facilities Act of 1982", being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the "Act"). This community facilities district shall hereinafter be referred to as SAN JACINTO COMMUNITY FACILITIES DISTRICT NO. 2020-1 (the "District'); and, WHEREAS, notice of a public hearing relating to the establishment of the District, the extent of the District, the financing of certain types of services and all other related matters has been given, and a report (the "District Report"), as ordered by this City Council, has been presented to this City Council and has been made a part of the record of the hearing to establish the District; and, WHEREAS, there has been two changes presented in the rates and method of apportionment since the adoption of the Resolution of Intention which modify (a) the definition of contingent services to include improvements owned by the property owner, in addition to that owned by a property owner association, which are to be dedicated or otherwise conveyed to the City if not properly maintained and (b) reduces the maximum special tax escalator from 7.5% to 5%; WHEREAS, such change is marked in the rates and method of apportionment of apportionment set forth in Exhibit "B" attached hereto (the "Rate and Method") and will not increase the Special Taxes or otherwise WHEREAS, all communications relating to the establishment of the District, the proposed services and the Rate and Method proposed to be levied within the District have been presented, and it has further been determined that a majority protest as defined by law has not been received against these proceedings or the levy of the special tax within the District; and WHEREAS, inasmuch as there have been less than twelve (12) registered voters residing within the territory of the District for at least the preceding ninety (90) days, the authorization to levy special taxes within the District shall be submitted to the landowners of the District, such landowners being the qualified electors as authorized by law. NOW, THEREFORE, BE IT RESOLVED, determined and ordered by the City Council of the City of San Jacinto, as follows: Section 1. Recitals. The above recitals are all true and correct. Section 2. Findings. The City Council finds as follows: (a) All of the preceding recitals are true and correct; (b) On June 16, 2020, pursuant to notice thereof duly given as provided by law, the City Council conducted a public hearing with respect to the formation of the District, and the annual levying of specified special taxes on such taxable property to pay the costs of the services which are to be provided within and for the District and which are described in Exhibit A, attached hereto (the "Services"); (c) The boundary map of the District was recorded on May 20, 2020, pursuant to Sections 3111 and 3113 of the California Streets and Highways Code, at page 14 in Book 85 of Maps of Assessment and Community Facilities Districts, and as Instrument No. 2020-0214738 in the official records of the County of Sacramento; (d) All prior proceedings with respect to the formation of the District prior to and during the public hearing with respect to the formation of the District which was conducted by the City Council on May 5, 2020, 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 public hearing, against the formation of the District, or the levying of the special taxes or the furnishing of specified types of public services, and the special taxes, services have, therefore, not been eliminated by majority protest pursuant to Section 53324 of the Act; (f) The City Council is, therefore, authorized to adopt a resolution of formation pursuant to Section 53325.1 of the Act for the formation of San Jacinto Community Facilities District No. 2020-1, and the District should be established; and (g) Twelve (12) persons have not been registered to vote within the territory of the District for each of the 90 days preceding the close of the public hearing on June 16, 2020, and pursuant to Section 53326 of the Act, the vote in the Consolidated Special Elections (defined below) provided for in Section 10 hereof shall, therefore, be by the landowners of the 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 District which would be subject to the proposed special taxes if they were levied at the time of the elections. Section 3. Formation of District. San Jacinto Community Facilities District No. 2020-1, is hereby established. The boundaries of the District are set forth and shown on the map entitled "City of San Jacinto Community Facilities District No. 2020-1, City of San Jacinto, County of Riverside, State of California," which is on file with the City Clerk, and those boundaries are hereby established. Section 4. Types of Services; Incidental Expenses. (a) A general description of the Services which are to be funded with the revenues from Special Taxes which are to be levied on parcels of taxable property within the District is set forth in Exhibit A attached hereto. (b) The proposed District shall also finance costs associated with the determination of the amount of and the levy and collection of special taxes which are levied to provide such services and costs otherwise incurred in order to carry out the authorized purposes of the District ("Incidental Expenses"). Section 5. Special Taxes. Except where funds are otherwise available, a special tax sufficient to finance the Services and related Incidental Expenses (the "Special Taxes"), secured by the recordation of a continuing lien against all taxable or nonexempt property in the District, shall be annually levied within the District. Under no circumstances will Special Taxes levied in any fiscal year against any parcel used for private residential purposes be increased as consequence of delinquency or default by the owner of any other parcel or parcels within the District by more than 10 percent (10%) above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults. A parcel shall be considered "used for private residential purposes" not later than the date on which an occupancy permit or the equivalent for private residential use is issued and for such parcel. For further particulars as to the rate and method of apportionment of the Special Taxes to be levied on parcels of taxable property in the District reference is made to the attached and incorporated Exhibit "B" (the "Rate and Method") which sets forth in sufficient detail the rate and method of apportionment of the Special Taxes to allow each landowner or resident within the District to clearly estimate the maximum amount that such person will have to pay. The Special Taxes may not be prepaid. Pursuant to Section 53340 of the Act, said Special Taxes shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided however, that the District may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations. 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 District, and that lien shall continue in force and effect until collection of the Special Taxes ceases. Section 6. Exempt Properties. Pursuant to Section 53340 of the Act, and except as provided in Section 53317.3 of the Act, properties of entities of the state, federal, and local governments shall be exempt from the levy of Special Taxes. Section 7. Necessity. The City Council finds that the Services described in Section 3 hereof are necessary to meet increased demands placed upon the City as a result of new development occurring within the boundaries of the District. Section 8. Report. The Report is hereby approved and is made a part of the record of the public hearing regarding the formation of the District, and is ordered to be kept on file with the City Clerk as part of the transcript of these proceedings. Section 9. 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 cities, insofar as they may be applicable. The voting procedures to be followed in conducting the consolidated special elections on (i) the proposition with respect to the levy of special taxes on parcels of taxable property within the District to pay the annual costs of the Services and (ii) the proposition with respect to establishing an appropriations limit for the District in the amount of $120,000 (the "Consolidated Special Elections") 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, and a resolution pursuant to Section 53326 of the Act submitting to the qualified electors of the District the propositions with respect to (i) the levy of Special Taxes to pay the annual costs of the Services, and (ii) establishing an appropriations limit for the community facilities district to the qualified electors of the community facilities district, upon which such elections can be held pursuant to Section 53326 which may be selected by the City Council, or such earlier date as the owners of land within the District and the City Clerk agree and concur is acceptable. (b) Pursuant to Section 53326 of the Act, the Consolidated Special Elections may be held earlier than 90 days following the close of the public hearing if the qualified electors of the 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 Section 53326 of the Act, ballots for the Consolidated Special Elections shall be distributed 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 cities, 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 resolutions 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 that Code, an impartial analysis by the City Attorney pursuant,to Section 9280 of that Code with respect to the ballot propositions contained in the official ballot, arguments and rebuttals, if any, pursuant to Sections 9281 to 9287, inclusive, and 9295 of that Code, a return identification envelope with prepaid postage thereon addressed to the City Clerk for the return of voted official ballots, and a copy of Resolution No. 3797 provided, however, that such statement, analysis and arguments may be waived with the unanimous consent of all the landowners who are qualified electors and shall be so stated in the resolution adopted by the City Council calling the Consolidated Special Elections. Such statement, impartial analysis and arguments, if any, shall be prepared by the City Attorney. (e) The official ballot to be mailed or delivered by the City Clerk or her designee 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 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 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 the 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 hour on the date of the election which is specified by the City Council in the resolution calling the Consolidated Special Elections for the receipt of voted ballots; provided that if all qualified voters have voted, the elections shall be closed with the concurrence of the City Clerk. (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. Section 10. Effect. This Resolution shall take effect effective immediately upon its passage. The City Clerk shall certify the passage and adoption of this resolution and enter it into the book of original resolutions. PASSED, APPROVED, and ADOPTED this 16th day of June, 2020, by the following vote: AYES: Kotyuk, Lopez, Ruiz, Ledezma, Ruiz NAYS: None ABSENT: None ABSTAIN: None City of San Jacinto Andrew Kotyuk, Mayor Aj Jul spinoza, Records Clerk APPROVED AS TO FORM: BEST BEST & KRIEGER, LLP Michae J. Maure , City Attorney CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE) ss CITY OF SAN JACINTO ) I, Julia Espinoza, Records Clerk of the City of San Jacinto, DO HEREBY CERTIFY that the foregoing Resolution No. 3807 was passed, approved, and adopted at the Regular Meeting of the San Jacinto City Council held on the 16th day of June, 2020 AYES: Kotyuk, Ruiz, Utz, Ledezma, Lopez NAYS: None ABSENT: None ABSTAIN: None WITNESS MY HAND AND OFFICIAL SEAL the 16th day of June, 2020. Ju ka spinoza, Records Clerk Cit San Jacinto EXHIBIT "A" DESCRIPTION OF PUBLIC SERVICES The types of services proposed to be provided for and financed by the proposed Community Facilities District are: (a) the maintenance of landscaped areas, parkways and medians improvements throughout the Community Facilities District and public right-of-ways, including, but not limited to, street trees, fencing, irrigation systems, sidewalks, drainage systems, graffiti removal, replacement, furnishing of water, electric current or energy, gas, or other illuminating agent for the operation of any improvement within the Community Facilities District; and (b) the maintenance and servicing of streetlights, traffic signals and appurtenant facilities, including, but not limited to furnishing of electric current, materials, contracted services, and the necessary maintenance, replacement, and repair required to keep the improvements in operational and satisfactory condition; and (c) any other services authorized under the Act (collectively, (a),(b) and (c), the ("Services"). Additionally, the incidental expenses which will be incurred are: (i) all costs associated with the formation of the proposed Community Facilities District, the determination of the amount of and collection of special taxes, the payment of special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the Community Facilities District, and (ii) any other expenses incidental to the provision of the Services. EXHIBIT "B" RATE AND METHOD OF APPORTIONMENT FOR THE SAN JACINTO COMMUNITY FACILITIES DISTRICT NO. 2020-1 A Special Tax shall be levied and collected in Community Facilities District No. 2020-1, City of San Jacinto ("CFD 2020-1 ") each Fiscal Year, in an amount determined by the application of the procedures described below. All of the Taxable Property (as defined below) in CFD 2020-1, unless exempted by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. 1. DEFINITIONS The terms used herein shall have the following meanings: "Accessory Dwelling Unit" means a secondary residential unit of limited size, as defined in California Government Code Section 65852.1 as that may be amended from time to time, that shares a Parcel with a Unit of Single Family Detached Property. "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map or in the Assessor's Data for each Assessor's Parcel. In the event the Assessor's Parcel Map or Assessor's Data shows no acreage, the Acreage for any Assessor's Parcel shall be determined by the CFD Administrator based upon the applicable final map, parcel map, condominium plan, or other recorded County parcel map or calculated using available spatial data and GIS. The square footage of an Assessor's Parcel is equal to the Acreage of such parcel 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 Act of the State of California. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD 2020-1: the costs of computing the Annual Special Tax Requirement and the annual Special Tax and of preparing the annual Special Tax collection schedules; the costs of collecting the Special Taxes, including any charges levied by the County Auditor's Office, Tax Collector's Office or Treasurer's Office; the costs of the City or designee in complying with the disclosure requirements of the California Government Code (including the Act), including public inquiries regarding the Special Taxes; the costs of the City or designee related to an appeal of the Special Tax; and the costs of commencing and pursuing to completion any foreclosure action arising from delinquent Special Taxes in CFD 2020-1. "Affordable Housing Property" means, in any Fiscal Year, all or a portion of any Assessor's Parcel within the boundaries of CFD 2020-1 that is subject to a deed restriction, resale restriction, or regulatory agreement recorded in favor of the City of San Jacinto that restricts Unit rents or prices chargeable to lower income households. "Affordable IVulti -Family Property" means Multi -Family Property that is also Affordable Housing Property. "Affordable Single Family Attached Property" means Single Family Attached Property that is also Affordable Housing Property. "Affordable Single Family Detached Property" means Single Family Detached Property that is also Affordable Housing Property. "Agricultural Property" means all Assessor's Parcels of Developed Property in CFD 2020-1 that are used for farming or agriculture according to Assessor's Data or as otherwise known by the CFD Administrator. "Annual Services Costs" means the amounts required to fund services authorized to be funded by CFD 2020-1. "Annual Special Tax Requirement" means that amount with respect to CFD 2020-1 determined by the City Council or designee as required in any Fiscal Year to pay: (1) the Administrative Expenses, (2) the Annual Services Costs, (3) the Contingent Special Tax Requirement, (4) any amount required to establish or replenish any reserve or replacement fund established in connection with CFD 2020-1, and (5) reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year. "Assessor's Data" means Acreage or other Parcel information contained in the records of the County Assessor. "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 Assessor of the County designating parcels by Assessor's Parcel Number. "Assessor's Parcel Number" means, with respect to an Assessor's Parcel, that number assigned to such Assessment's Parcel by the County for purposes of identification. "Backup Contingent Special Tax" means the Backup Contingent Special Tax applicable to each Assessor's Parcel of Taxable Property, as determined in accordance with Section III below. "Backup Special Tax" means the Backup Special Tax applicable to each Assessor's Parcel of Taxable Property, as determined in accordance with Section III below. "Boundary Map" means that map recorded with the County Recorder's office on May 20, 2020 in Book 85 at Page 14 as Document Number 2020-0214738. "Building Square Foot(age)" means the structure square footage as shown in the building permit issued or as contained in the County Assessor's Data. "CFD 2020-1" means the Community Facilities District No. 2020-1, City of San Jacinto, County of Riverside, State of California. "CFD Administrator" means an official of the City, or designee or agent or consultant, responsible for administering the Special Tax in accordance with this Rate and Method of Apportionment. "City" means the City of San Jacinto, County of Riverside, California. "City Council" means the City Council of the City, acting as the legislative body of CFD 2020-1. "Commercial Property" means all Assessor's Parcels of Developed Property for which a building permit was issued for a commercial use, according to Assessor's Data or as otherwise known by the CFD Administrator. "Contingent Services" means those services to be provided initially by a POA or a property owner where an irrevocable offer of dedication, public easement or other instrument allows for the dedication of improvements to the City so that the City or contractor(s) of the City may provide such services should the POA or property owner be unable to provide the Contingent Services to the City's standards or pay for the costs of such services. The actual services that are considered Contingent Service may differ within each Tax Zone. "Contingent Special Tax" means that amount levied in each Fiscal Year on each Assessor's Parcel of Taxable Property to fund the Contingent Special Tax Requirement. "Contingent Special Tax Requirement" means that amount with respect to each Tax Zone as required in any Fiscal Year if the POA is unable to provide the Contingent Services to the City's standards or pay for the costs of Contingent Services incurred or otherwise payable. "County" means the County of Riverside, California. "Developed Property" means, in any Fiscal Year, all Taxable Property in CFD 2020-1 for which a building permit for new construction was issued by the City prior to June 1 of the preceding Fiscal Year. Agricultural Property used for farming or agriculture is considered Developed Property even if no structure is on the Parcel. "Exempt Property" means all property located within the boundaries of CFD 2020-1 which is exempt from the Special Tax pursuant to Section V below. "Fiscal Year" means the period from July 1st of any calendar year through June 30th of the following calendar year. "Future Annexation Area" means the area designated for future annexation to CFD 2020-1 as shown in the CFD 2020-1 Boundary Map, as may be amended from time to time. "GIS" means a geographic information system. "Industrial Property" means all Assessor's Parcels of Developed Property for which a building permit was issued for an industrial use, according to Assessor's Data or as otherwise known by the CFD Administrator. "Maximum Contingent Special Tax" means the maximum Contingent Special Tax authorized for levy in any Fiscal Year that may apply to Taxable Property as described in Section III. "Maximum Special Tax" means the maximum Special Tax authorized for levy in any Fiscal Year that may apply to Taxable Property as described in Section Ill. "Mixed Use Property" means all Assessor's Parcels of Developed Property that have more than one property classifications, allowing for both residential and other use types on each such Assessor's Parcel. For an Assessor's Parcel of Mixed Use Property, the Special Tax shell be calculated and levied for each use type present on the Assessor's Parcel. "Multi -Family Property" means, in any Fiscal Year, all Parcels of Developed Property for which a building permit or use permit has been issued for construction of a residential structure with five or more Units that share a single Assessor's Parcel Number, are offered for rent to the general public, and cannot be purchased by individual homebuyers, according to Assessor's Data or as otherwise known by the CFD Administrator. "Non -Residential Property" means all Assessor's Parcels of Developed Property for which a building permit was issued, that is not used for people to live in, and does not include Agricultural Property, Commercial Property, Multi -Family Property, Industrial Property or Public Property, according to Assessor's Data or as otherwise known by the CFD Administrator. "Parcel" means a lot or parcel with a parcel number assigned by the Assessor of the County. "Property Owner's Association" or "POA" means any property owner's association established to provide Contingent Services within a Tax Zone. "Property Owners Association Property" means any property within the boundaries of CFD 2020-1 which is (a) owned by a property owners association or (b) designated with specific boundaries and acreage on a final subdivision map as property owner association property. As used in this definition, a property owner association includes any master or sub -association. "Proportionately" means, for Developed Property that the ratio of the Special Tax levy to the Assigned Special Tax or the Backup Special Tax is equal for all Assessors' Parcels of Developed Property within CFD 2020-1. For Undeveloped Property, "Proportionately" means that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor's Parcels of Undeveloped Property within CFD 2020-1. "Public Property" means any property within the boundaries of CFD 2020-1 owned by, irrevocably offered or dedicated to, or for which an easement for purposes of public or private road right-of-way making the property unusable for any other purpose has been granted to the federal government, the State of California, the County, the City, or any local government or other public agency. "Single Family Attached Property" means, in any Fiscal Year, all Parcels of Developed Property for which a building permit or use permit was issued for construction of a residential structure consisting of two or more Units that share common walls, have separate Assessor's Parcel Numbers assigned to them (except for a duplex triplex, or fourplex unit, which may share a Parcel with another duplex, triplex or fourplex Unit(s)), and may be purchased by individual homebuyers (which shall still be the case even if the Units are purchased and subsequently offered for rent by the owner of the Unit), including such residential structures that meet the statutory definition of a condominium project contained in Civil Code Section 4125, according to Assessor's Data or as otherwise known by the CFD Administrator. "Single Family Detached Property" means, in any Fiscal Year, all Parcels of Developed Property for which a building permit was issued for construction of a Unit that does not share a common wall with another Unit, according to Assessor's Data or as otherwise known by the CFD Administrator. "Special Tax" means the amount levied in each Fiscal Year on each Assessor's Parcel of Taxable Property to fund the Annual Special Tax Requirement. "Tax Escalation Factor" means a factor equal to the annual change in the April to April Riverside -San Bernardino -Ontario CPI-U Index up to a maximum factor of 5% that will be applied annually after Fiscal Year 2020/21 to increase the Maximum Special Tax rates shown in Section III. "Tax Zone" means a mutually exclusive geographic area within which the Special Tax may be levied pursuant to this Rate and Method of Apportionment. All of the Taxable Property within CFD 2020-1 at the time of its formation is within Tax Zone No. 1. Additional Tax Zones may be created when property is annexed to CFD 2020-1, and a separate Maximum Special Tax shall be identified for property within the new Tax Zone at the time of such annexation. The Assessor's Parcels included within a new Tax Zone when such Parcels are annexed to CFD 2020-1 shall be identified by Assessor's Parcel number in the annexation documents at the time of annexation. "Taxable Property" means all Parcels within the boundary of CFD 2020-1 that are not Exempt Property, or exempt from the Special Tax pursuant to the Act or Section V below. "Undeveloped Property" means all Parcels of Taxable Property that are not Developed Property. "Unit" means any individual single family detached or attached home, townhome, condominium, apartment, or other residential dwelling unit, including each separate living area within a half-plex, duplex, triplex, fourplex, or other residential structure. An Accessory Dwelling Unit that shares a Parcel with a Unit of Single Family Detached Property, Single Family Attached Property shall not be considered a separate Unit for purposes of calculating the Special Tax. "Welfare Exempt Property" means all Parcels within the boundaries of CFD 2020-1 that have been granted a welfare exemption pursuant to Section 53340 (c) under the Act under subdivision (g) of Section 214 of the Revenue and Taxation Code by the County. IL DETERMINATION OF TAXABLE PARCELS On or about July 1 of each Fiscal Year, the CFD Administrator shall determine the valid Assessor's Parcel Numbers for all Taxable Property within CFD 2020-1. If any Assessor's Parcel Numbers are no longer valid from the previous Fiscal Year, the CFD Administrator shall determine the new Assessor's Parcel Number or Numbers that are in effect for the current Fiscal Year. To the extent a Parcel or Parcels of Taxable Property are subdivided, consolidated or otherwise reconfigured, the Maximum Special Tax rates shall be assigned to the new Assessor's Parcels pursuant to Section 111. The CFD Administrator shall also determine: (i) the Tax Zone within which each Parcel is located; (ii) which Parcels are Developed Property and Undeveloped Property; (iii) the number of Units each Parcel contains; (iv) the property type, i.e. Single Family Detached Property, etc; and (iv) the Annual Special Tax Requirement for the Fiscal Year. Ill. SPECIAL. TAX - METHOD OF APPORTIONMENT All Taxable Property shall be subject to a Special Tax defined as follows. The Special Tax shall be levied each Fiscal Year by the CFD Administrator. The Annual Special Tax Requirement shall be apportioned to each Parcel within CFD 2020-1 by the method shown below. First. Determine the Annual Special Tax Requirement. Second. Levy the Special Tax on each Parcel of Developed Property, Proportionately, up to the Maximum Special Tax described in the table Third. If additional monies are needed to satisfy the Annual 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 up to 100% of the Maximum Special Tax for Undeveloped Property. Under no circumstances will the Special Tax levied against any Assessor's Parcel of Developed Property be increased by more than 10% as a consequence of delinquency or default by the owner of any other Assessor's Parcel within CFD No. 2020-1. TABLE 1 SPECIAL TAX RATES — TAX ZONE NO. 1 FISCAL YEAR 2020/21* Expected Special Tax Special Tax Property Type Rate Per Revenue Commercial Property $1,585.20 Acre $13,601.00 Undeveloped Property $1,585.20 Acre $13,601.00 *On each July 1, commencing on July 1, 2021, the Maximum Special Tax Rate and Expected Special Tax Revenue for each Tax Zone shall be increased by the Tax Escalation Factor. TABLE 2 CONTINGENT SPECIAL TAX RATES — TAX ZONE NO. 1 FISCAL YEAR 2020/21* Contingent Expected Property Type Special Tax Per Contingent Special Tax Rate Revenue Commercial Property $5,406.45 Acre $46,387.30 Undeveloped Property $5,406.45 Acre $46,387.30 'Un each July 1, commencing on July 1, 2021, the Maximum Special Tax Rate and Expected Contingent Special Tax Revenue for each Tax Zone shall be increased by the Tax Escalation Factor. Maximum Special Taxes The Maximum Special Tax for each Assessor's Parcel of Taxable Property within each Tax Zone shall be the greater of the Special Tax as show in Table 1 or the Backup Special Tax. The Maximum Contingent Special Tax for each Assessor's Parcel of Taxable Property within each Tax Zone shall be the greater of the Contingent Special Tax as show in Table 2 or the Backup Contingent Special Tax. BackuD Special Taxes The Backup Special Tax for each Assessor's Parcel of Taxable Property within each Tax Zone shall be the rate per Acre that results in the Expected Special Tax Revenue for each Tax Zone. The Backup Contingent Special Tax for each Assessor's Parcel of Taxable Property within each Tax Zone shall be the rate per Acre that results in the Expected Contingent Special Tax Revenue for each Tax Zone. A different Maximum Special Tax rate may be identified in Tax Zones added to CFD 2020-1 as a result of future annexations. In some instances, an Assessor's Parcel of Developed Property may contain more than one type of property. The Maximum Special Taxes levied on an Assessor's Parcel shall be the sum of the Maximum Special Taxes for all Units located on that Assessor's Parcel. IV. FORML16A FOR PREPAYMENT OF SPECIAL TAX OBLIGATIONS The Special Tax may not be prepaid. V. EXEMPJIONS Notwithstanding any other provision of this Rate and Method of Apportionment of Special Tax, no Special Taxes shall be levied on Public Property, except as otherwise - provided in Sections 53317.3 and 53317.5 of the Act. Additionally, Welfare Exempt Property, shall be reimbursed for Special Tax levied and paid. A property owner must provide documentation of the exemption within one calendar year after having paid the Special Taxes for which an exemption has been granted. A refund of the amount of Special Taxes paid for the Fiscal Year the exemption has been granted will be provided to the owner of Welfare Exempt Property who was granted the exemption. VI. INTERPRETATION OF RATE AND METHOD OF APPORTIONMENT The City reserves the right to make minor administrative and technical changes to this document that do not materially affect the rate and method of apportioning the Special Tax. In addition, the interpretation and application of any section of this document shall be at the City's discretion. Interpretations may be made by the City by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment of Special Tax. VII. MANNER AND DURATION OF SPECIAL TAX The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided that the City 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 2020-1, and may collect delinquent Special Taxes through foreclosure or other available methods. A Special Tax shall continue to be levied and collected within CFD 2020-1, as needed to fund the Annual Special Tax Requirement, in perpetuity. VI11. APPEAL 4F 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. The appeal must be filed not later than one calendar year after having paid the Special Taxes that are disputed, and the appellant must be current in all payments of Special Taxes. In addition, during the term of the appeal process, all Special Taxes 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 Special Taxes are 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 Council requires the Special Taxes to be modified or changed in favor of the property owner, no cash refund shall be made for prior years' Special Taxes, but 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.