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HomeMy WebLinkAboutResolution - 3797 (2)STATE OF CALIFORNIA ) RESOLUTION NO. 3797 COUNTY OF RIVERSIDE) ss CITY OF SAN JACINTO ) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO DECLARING ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2020-1 AND TO AUTHORIZE THE LEVY OF A SPECIAL TAX THEREIN TO FINANCE THE PROVISIONS OF CERTAIN PUBLIC SERVICES WHEREAS, the City Council of the City of San Jacinto (the "City Council"), in response to petitions received from the owners of certain property located within the City of San Jacinto identified as Assessor Parcel Numbers 439-120-057, 058, 059, 060, 061 and 062 requesting that the City Council initiate proceedings to consider the formation of a Community Facilities District, desires to initiate such proceedings 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') to finance the provision of certain public services; and WHEREAS, pursuant to such petition the City Council desires to initiate proceedings to consider the formation of such Community Facilities District which shall hereinafter be referred to as COMMUNITY FACILITIES DISTRICT NO. 2020-1 (the "District'); and, WHEREAS, this City Council is now required to proceed to adopt its Resolution of Intention to initiate the proceedings for the establishment of such District, to set forth the boundaries for such District, to indicate the type of public services proposed to be financed by such District, to indicate the rate and apportionment of a special tax sufficient to finance the public services and the administration of the District, to set a time and place for a public hearing relating to the establishment of such District; and WHEREAS, a map of such District (the "Boundary Map") has been submitted to the City Council showing the boundaries of the territory proposed for inclusion in the District including properties and parcels of land proposed to be subject to the levy of a special tax by the District, and such map has been previously approved by this City Council. 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. Initiation of Proceedings. These proceedings are initiated by this City Council pursuant to the authorization of Section 53318 of the Government Code of the State of California. Section 3. Boundaries of District. It is the intention of this City Council to establish a Community Facilities District pursuant to the provisions of the Act, and to determine the boundaries and parcels on which special taxes may be levied to finance the provision of certain public services. A description of the boundaries of the territory proposed for inclusion in the District including properties and parcels of land proposed to be subject to the levy of a special tax by the District is as follows: All that property as shown on a map attached hereto as Exhibit C. Section 4. Name of District. The name of the proposed community facilities district to be established shall be known and designated as "COMMUNITY FACILITIES DISTRICT NO. 2020-1". Section 6. Description of Public Services. It is the further intention of this City Council to finance the public services generally described in Exhibit A (the "Services") attached hereto and incorporated herein by this reference and all costs associated with the establishment of the District, administration of the District, the determination of the amount of any special taxes to be levied, the costs of collecting any special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the District. It is hereby further determined that the Services are necessary to meet increased demands and needs placed upon the City as a result of development within the District. Section 6. Special Tax. It is hereby further proposed that, except where funds are otherwise available, a special tax sufficient to pay for the Services and related incidental expenses authorized by the Act, secured by recordation of a continuing lien against all non-exempt real property in the District, will be levied annually within the boundaries of the District. For further particulars as to the rate and method of apportionment of the proposed special tax (the "Rate and Method of Apportionment") reference is made to the attached and incorporated Exhibit B, which sets forth in sufficient detail the method of apportionment to allow each landowner or resident within the proposed District to clearly estimate the maximum amount that such person will have to pay. The Rate and Method of Apportionment also sets forth the duration of the Special Tax. 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 for such parcel. The special taxes herein proposed, to the extent possible, shall be collected in the same manner as ad valorem property taxes or in such other manner at this City Council shall determine, including without limitation, direct billing of the affected property owners, and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency as applicable for ad valorem taxes. Any special taxes that may not be collected on the County tax roll shall be collected through a direct billing procedure by the Treasurer of the City, acting for and on behalf of the District. The special tax obligation for any parcel may not be prepaid. Section 7. Public Hearing. NOTICE IS GIVEN THAT ON June 16, 2020, AT THE HOUR OF 6:30 O'CLOCK P.M., IN THE REGULAR MEETING PLACE OF THE CITY COUNCIL BEING THE SAN JACINTO COMMUNITY CENTER, LOCATED AT 625 S. PICO AVENUE, SAN JACINTO, CALIFORNIA, A PUBLIC HEARING WILL BE HELD WHERE THIS CITY COUNCIL WILL CONSIDER THE ESTABLISHMENT OF THE PROPOSED COMMUNITY FACILITIES DISTRICT, THE PROPOSED METHOD AND APPORTIONMENT OF THE SPECIAL TAX, AND ALL OTHER MATTERS AS SET FORTH IN THIS RESOLUTION OF INTENTION. THAT AT THE ABOVE -MENTIONED TIME AND PLACE FOR PUBLIC HEARING ANY PERSONS INTERESTED, INCLUDING TAXPAYERS AND PROPERTY OWNERS, MAY APPEAR AND BE HEARD, AND THAT THE TESTIMONY OF ALL INTERESTED PERSONS FOR OR AGAINST THE ESTABLISHMENT OF THE DISTRICT, THE EXTENT OF THE DISTRICT, OR THE FINANCING OF THE PUBLIC SERVICES, WILL BE HEARD AND CONSIDERED. ANY PROTESTS MAY BE MADE ORALLY OR IN WRITING. HOWEVER, ANY PROTESTS PERTAINING TO THE REGULARITY OR SUFFICIENCY OF THE PROCEEDINGS SHALL BE IN WRITING AND CLEARLY SET FORTH THE IRREGULARITIES AND DEFECTS TO WHICH THE OBJECTION IS MADE. ALL WRITTEN PROTESTS SHALL BE FILED WITH THE CITY CLERK OF THE CITY COUNCIL ON OR BEFORE THE TIME FIXED FOR THE PUBLIC HEARING. WRITTEN PROTESTS MAY BE WITHDRAWN IN WRITING AT ANY TIME BEFORE THE CONCLUSION OF THE PUBLIC HEARING. IF A WRITTEN MAJORITY PROTEST AGAINST THE ESTABLISHMENT OF THE DISTRICT IS FILED, THE PROCEEDINGS SHALL BE ABANDONED. IF SUCH MAJORITY PROTEST IS LIMITED TO CERTAIN PUBLIC SERVICES OR PORTIONS OF THE SPECIAL TAX, THOSE SERVICES OR THAT TAX SHALL BE ELIMINATED BY THE CITY COUNCIL. Section 8. Election. If, following the public hearing described in the Section above, the City Council determines to establish the District and proposes to levy a special tax within the District, the City Council shall then submit the levy of the special taxes to the qualified electors of the District. If at least twelve (12) persons, who need not necessarily be the same twelve (12) persons, have been registered to vote within the District for each of the ninety (90) days preceding the close of the public hearing, the vote shall be by registered voters of the District, with each voter having one (1) vote. Otherwise, the vote shall be by the landowners of the District who were the owners of record at the close of the subject hearing, with each landowner or the authorized representative thereof, having one (1) vote for each acre or portion of an acre of land owned within the District. Section 9. Report. The officers of the City who will be responsible for providing the proposed types of public services to be provided within and financed by the proposed community facilities district, if it is established, are hereby requesting that NBS Government Finance Group study the proposed community facilities district, and, at or before the time of said hearing, file a report with the City Council containing a brief description of the public services by type which will in its opinion be required to adequately meet the needs of the proposed community facilities district, and its estimate of the fair and reasonable cost of providing those public services, and the incidental expenses to be incurred in connection therewith. Such report shall include a description and an estimate of the cost of the City services which are proposed to be financed with the proceeds of the special taxes. Such report shall be made a part of the record of the hearing to be held pursuant to Section 7 hereof. Section 10. Notice. Notice of the time and place of the public hearing shall be given by the City Clerk by causing the publication of a Notice of Public Hearing in the legally designated newspaper of general circulation, such publication pursuant to Section 6061 of the Government Code, with such publication to be completed at least seven (7) days prior to the date set for the public hearing. Section 11. Advances of Funds or Work -In -Kind. At any time either before or after the formation of the District, the City Council may accept advances of funds or work- in -kind from any source, including, but not limited to, private persons or private entities and may 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 cost incurred by the City in creating the District. The City may enter into an agreement, by resolution, with the person or entity advancing the funds or work -in -kind, to repay all or a portion of the funds so 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. The City has entered into a Community Facilities District Advance and Reimbursement Agreement with MW Vantage to provide for such advances for the payment of all initial consulting and administration costs and expenses related to the proceedings to consider the formation of the District. No such agreement shall constitute a debt or liability of the City. Section 12. Future Annexations. The City Council may authorize annexation of additional territory to the boundaries of the District in future in accordance with the Act. Section 13. Effect. This resolution shall take effect immediately upon its passage. PASSED, APPROVED, and ADOPTED at a regular meeting of the City Council of the City of San Jacinto held on the 5th day of May 2020 by the following vote: AYES: Kotyuk, Ruiz, Utz, Lopez, Ledezma NAYS: None ABSENT: None ABSTAIN: None CITY OF SAN JACINTO: Andrew Kotyuk, Mayor ATTEST: APPROVED AS TO FORM: BEST BES7 & KRIEGAR, LLP Michael J. Maure(r, City Attorney STATE OF CALIFORNIA) COUNTY OF RIVERSIDE) ss CITY OF SAN JACINTO) CERTIFICATION I, Angela Walton, duly appointed City Clerk of the City of San Jacinto, do hereby certify that the foregoing Resolution No. 3797 was duly passed, approved and adopted at a regular meeting of the City Council of the City of San Jacinto on the 5th day of May 2020 by the following vote: AYES: Kotyuk, Ruiz, Utz, Lopez, Ledezma NAYS: None ABSENT: None ABSTAIN: None WITNESS MY HAND AND OFFICIAL SEAL the 5th day of May 2020. n la ton, City Clerk City of 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. 24438.02015\32800143.2 7 EXHIBIT "B" RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX CITY OF SAN JACINTO COMMUNITY FACILITIES DISTRICT NO.2020-1 RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX 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 Multi -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. 24438.02015\32800143.2 8 "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 in Book _ at Page _ as Document Number "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. 24438.02015132800143.2 9 "Contingent Services" means those services to be provided initially by a POA, but that may be provided by the City or contractor(s) of the City should the POA 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 11 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 III. "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 shall 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. 24438.02015\32800143.2 10 "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 7.5% 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. Al! 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. 24438.02015\32800143.2 11 "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. 11. 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 below to satisfy the Annual Special Tax Requirement. 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. 24438.02015\32800143.2 12 TABLE 1 SPECIAL TAX RATES — TAX ZONE NO. l FISCAL YEAR 2020/21* Property Type Special Tax Rate Per Expected Special Tax Revenue Commercial Property $1,585.20 Acre $13,601.00 Undeveloped Property $1,585.20 Acre *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 Special Expected Property Type Tax Rate Per Contingent Special Tax Revenue Commercial Property $5,406.45 Acre $46,387.30 Undeveloped Property $5,406.45 Acre *On 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. Backup 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. FORMULA FOR PREPAYMENT OF SPECIAL TAX OBLIGATIONS The Special Tax may not be prepaid. 24438.02015\32800143.2 13 V. EXEMPTIONS 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. VI I I. 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. 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. 24438.02015\32800143.2 14 EXHIBIT "VII BOUNDARY MAP CITY OF SAN JACINTO COMMUNITY FACILITIES DISTRICT NO. 2020-1 CITY OF SAN JACINTO COUNTY OF RIVERSIDE STATE OF CALIFORNIA r wliaf,N, 0--a. R'd cc.s -Ll P Vacu NAD 1983 Swl,,PfV1 rIPS 04(* r— 24438.02015\32800143.2 15