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HomeMy WebLinkAboutResolution - 3891 STATE OF CALIFORNIA ) RESOLUTION NO. 3891 COUNTY OF RIVERSIDE ) ss CITY OF SAN JACINTO ) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN J ACINTO DECLARING INTENTION TO ANNEX TERRITORY TO SAN JACINTO COMMUNITY FACILITIES DISTRICT NO. 2020-1 AND ADOPTING A MAP OF THE AREA PROPOSED TO BE ANNEXED THERETO (ANNEXATION NO. 2 TO CFD 2020-1 (TAX ZONE NO.3)) WHEREAS, the City Council (the “City Council”) of the City of San Jacinto (the “City”) has established San Jacinto Community Facilities District No. 2020-1, County of Riverside, State of California (the “District”) for the purpose of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City as a result of the development of said real property; and WHEREAS, it is necessary that certain parcels of property be annexed to the District in order that they may be developed and receive the benefit of services which will be financed by the annual levy of special taxes on said property sufficient to pay the costs of such services and costs incidental thereto; and WHEREAS, the City Council is authorized by Article 3.5 (commencing with Section 53339) of Chapter 2.5 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”) to annex territory to the District by complying with the procedures set forth in said Article 3.5; 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 true and correct and are hereby incorporated into this resolution. Section 2. Name of District. The name of the existing Community Facilities District is San Jacinto Community Facilities District No. 2020-1, County of Riverside, State of California. Section 3. Intention. The City Council declares its intention to conduct proceedings pursuant to said Article 3.5 for the annexation to the District of the territory described in Exhibit “A” attached hereto. The City Council determines that the public convenience and necessity require that such territory be annexed to the District. Section 4. Description of Territory Proposed To Be Annexed; Annexation Map. The territory which is included in the District is described on the map of the District DocuSign Envelope ID: 6B2A4E50-F063-4054-8931-FAD75FF28AC8 -2- recorded on May 20, 2020 in Book 85 of Maps of Assessment and Community Facilities Districts, page 14, and as Instrument No 2020-0214738 in the official records of the County of Riverside. The territory proposed to be annexed to the District is described in Exhibit “A” attached hereto and by this reference made a part hereof. Such territory is also shown and described on the map thereof entitled “Annexation Map No. 2, Community Facilities District No. 2020-1 (Tax Zone No. 3) of the City of San Jacinto, County of Riverside, State of California,” which is on file with the City Clerk (the “Annexation Map”). Section 5. Types of Services; Incidental Expenses; Plan for Providing Services. 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 “B” attached hereto and by reference made a part hereof. The 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 co sts otherwise incurred in order to carry out its authorized purposes. The services described above shall be provided, as needed, throughout the District and the territory proposed to be annexed thereto for the benefit of all owners of property and resident s of the District and the territory proposed to be annexed thereto. All owners of taxable parcels of property within the District and the territory proposed to be annexed thereto shall pay special taxes at the same rate to finance the annual cost of providing such services. The services to be provided and financed by the District, as previously described, are necessary to meet increased demands placed upon the City as a result of development occurring within the District and the territory proposed to be annexed thereto. Section 6. Special Taxes. Except where funds are otherwise available, special taxes sufficient to pay the costs of the services described in Section 4 above and the annual administrative expenses of the City and the District in determining, apportioning, levying and collecting such special taxes, shall be annually levied within the territory proposed to be annexed to the District. Pursuant to Section 53340 of the California Government Code, the 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. The rates and method of apportionment of said special taxes shall be as set forth in Exhibit “C” attached hereto and by this reference made a part hereof. Section 7. Adoption of Annexation Map. Pursuant to Section 3110.5 of the Streets and Highways Code, the City Council adopts the Annexation Map as the map of the area proposed to be annexed to the District. Pursuant to Section 3111 of said Code, the City Clerk shall file the original of the Annexation Map in her office and shall file a copy of the Annexation Map with the County Recorder of the County of Riverside no later than 15 days prior to the date of the hearing specified in Section 8 hereof. Section 8. Hearing. A public hearing on the proposed annexation of said territory to the District shall be held at 6:30 p.m. on Tuesday, January 4, 2022, in the San Jacinto Community Center, located at 625 S. Pico Avenue, San Jacinto, California. DocuSign Envelope ID: 6B2A4E50-F063-4054-8931-FAD75FF28AC8 -3- Section 9. Notice. The City Clerk shall publish a notice of the time and place of said hearing as required by Section 53322 of the California Government Code, and shall also give notice of the hearing by first class mail to each registered voter and landowner within the territory proposed to be annexed to the District as prescribed by Section 53339.4 of said Code. Said notice shall be published at least seven (7) days and mailed at least fifteen (15) days before the date of t he hearing and shall contain the information required by said Section 53339.4. Section 10. Description of Voting Procedures. The voting procedures to be followed in conducting the election on the proposition with respect to the levy of special taxes within the territory proposed to be annexed to the District shall be as follows: (a) If at the time of the close of the public or protest hearing (hereinafter referred to as the “protest hearing”) at least 12 persons are registered to vote within the territory proposed to be annexed to the District, the election shall be conducted by the City Clerk, and shall be held on a date selected by the City Council in conformance with the provisions of Section 53326 of the California Government Code (“Section 53326”) and pursuant to the applicable provisions of law regulating elections of the City, insofar as they may be applicable, and pursuant to Section 53326 the ballots for the election shall be distributed to the qualified electors of the territory proposed to be annexed to the District by mail with return postage prepaid and the election shall be conducted as a mail ballot election. (b) If at the time of the close of the protest hearing, and for at least the preceding 90 days, less than 12 persons have been registered to vote wit hin the territory proposed to be annexed to the District, and pursuant to Section 53326, the vote is therefore to be by the landowners of that territory, with each landowner of record at the close of the protest hearing having one vote for each acre or portion of an acre of land that he or she owns, the election shall be conducted by the City Clerk as follows: (1) The election shall be held on the earliest date following the conclusion of the protest hearing upon which it 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 territory proposed to be annexed to the District and the City Clerk agree and concur is acceptable. (2) Pursuant to Section 53326, the election may be held earlier than 90 days following the close of the protest hearing if the qualified electors of the territory proposed to be annexed to the District waive the time limits for conducting the election set forth in 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. (3) Pursuant to Section 53326, ballots for the election shall be distributed to the qualified electors by the City Clerk by mail with return postage prepaid or by personal service. DocuSign Envelope ID: 6B2A4E50-F063-4054-8931-FAD75FF28AC8 -4- (4) Pursuant to applicable provisions of law regulating elections of the City which govern the conduct of mail ballot elections, and 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 the election, 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 the said Code, an impartial analysis by the City Attorney pursuant to Sect ion 9280 of the said Code with respect to the ballot proposition contained in the official ballot, ballot arguments and rebuttals, if any, pursuant to Sections 9281 to 9287, inclusive, of said 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 this resolution; provided, however, that such statement, analysis and arguments may be waived with the unanimous consent of all the landowners of the territory proposed to be annexed to the District and shall be so stated in the resolution adopted by the City Council calling the election. (5) 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 proposition set forth in the official ballot as marked thereon in the voting square opposite such proposition, and further certifying as to the acreage of the landowner-voter’s land ownership within the territory proposed to be annexed to the District. (6) The return identification envelope 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 said declaration, and (vii) a notice that the envelope contains an official ballot and is to be opened only by the City Clerk. DocuSign Envelope ID: 6B2A4E50-F063-4054-8931-FAD75FF28AC8 -5- (7) The information-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 5:00 o’clock p.m. on the date of the election. (8) Upon receipt of the return identification envelopes which are returned prior to the voting deadline on the date of the election, the City Clerk shall canvass the votes cast in the election and shall file a statement with the City Council at its next regular meeting regarding the results of such canvass and the election. The procedures set forth in this section for conducting the election may be modified as the City Council may determine to be necessary or desirable by a resolution subsequently adopted by the City Council. DocuSign Envelope ID: 6B2A4E50-F063-4054-8931-FAD75FF28AC8 PASSED, APPROVED, and ADOPTED this 16th day of November, 2021. AYES: Ruiz, Heath Ayala, Hawkins, Ledezma NAYS: None ABSENT: None ABSTAIN: None CITY OF SAN JACINTO _______________________________ Alonso Ledezma, Mayor ATTEST: __________________________ Julia Espinoza, Deputy City Clerk APPROVED AS TO FORM: BEST, BEST & KRIEGER LLP __________________________________ Michael J. Maurer, City Attorney DocuSign Envelope ID: 6B2A4E50-F063-4054-8931-FAD75FF28AC8 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF SAN JACINTO ) I, Julia Espinosa, Deputy City Clerk of the City of San Jacinto, DO HEREBY CERTIFY that the foregoing Resolution No. 3891 was regularly passed, approved, and adopted by the Regular Meeting of the San Jacinto City Council held on the 16th of November, 2021: AYES: Ruiz, Heath, Ayala, Hawkins, Ledezma NAYS: None ABSENT: None ABSTAIN: None WITNESS MY HAND AND OFFICIAL SEAL this 16th day of November, 2021. ________________________________ Julia Espinoza, Deputy City Clerk DocuSign Envelope ID: 6B2A4E50-F063-4054-8931-FAD75FF28AC8 A-1 EXHIBIT “A” LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF SAN JACINTO, IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: APN: : 432-130-016, 432-130-017, 432-130-018, 432-130-020, 432-130-022 & 432-130- 024 DocuSign Envelope ID: 6B2A4E50-F063-4054-8931-FAD75FF28AC8 B-1 EXHIBIT “B” DESCRIPTION OF SERVICES The types of services proposed to be provided for and financed by the proposed District are: (a) the maintenance of landscaped areas, parkways and medians improvements throughout the 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 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. DocuSign Envelope ID: 6B2A4E50-F063-4054-8931-FAD75FF28AC8 C-1 24438.02015\33413420.3 EXHIBIT “C” 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. I. 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. DocuSign Envelope ID: 6B2A4E50-F063-4054-8931-FAD75FF28AC8 C-2 24438.02015\33413420.3 “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 the 20th day of May 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. DocuSign Envelope ID: 6B2A4E50-F063-4054-8931-FAD75FF28AC8 C-3 24438.02015\33413420.3 “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 Ci ty’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 III. DocuSign Envelope ID: 6B2A4E50-F063-4054-8931-FAD75FF28AC8 C-4 24438.02015\33413420.3 “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. “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 DocuSign Envelope ID: 6B2A4E50-F063-4054-8931-FAD75FF28AC8 C-5 24438.02015\33413420.3 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. II. 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 III. 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. III. SPECIAL TAX - METHOD OF APPORTIONMENT All Taxable Property shall be subject to a Special Tax defined as follows. DocuSign Envelope ID: 6B2A4E50-F063-4054-8931-FAD75FF28AC8 C-6 24438.02015\33413420.3 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. TABLE 1 SPECIAL TAX RATES – TAX ZONE NO. 1 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 $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. DocuSign Envelope ID: 6B2A4E50-F063-4054-8931-FAD75FF28AC8 C-7 24438.02015\33413420.3 TABLE 2 CONTINGENT SPECIAL TAX RATES – TAX ZONE NO. 1 FISCAL YEAR 2020/21* Property Type Contingent Special Tax Rate Per Expected Contingent Special Tax Revenue Commercial Property $5,406.45 Acre $46,387.30 Undeveloped Property $5,406.45 Acre $46,387.30 *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. DocuSign Envelope ID: 6B2A4E50-F063-4054-8931-FAD75FF28AC8 C-8 24438.02015\33413420.3 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. VIII. 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. DocuSign Envelope ID: 6B2A4E50-F063-4054-8931-FAD75FF28AC8 C-9 24438.02015\33413420.3 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. DocuSign Envelope ID: 6B2A4E50-F063-4054-8931-FAD75FF28AC8 C-1 24438.02015\33413420.3 CITY OF SAN JACINTO COMMUNITY FACILITIES DISTRICT NO. 2020-1 ATTACHMENT 1 SPECIAL TAX RATES Tax Zone APNs Base Year* Rate Expected Special Tax Revenue 2 436-360-011, 436-360-013, 436-360-014 & 436-360-015 2021/22 $1,875.59/Acre $14,123.22 3 432-130-016, 432-130-017, 432-130-018, 432-130-020, 432-130-022 & 432-130-024 2022/23 $358.97/Acre $12,463.58 * On each July 1, commencing on July 1 of the Base Year, the Maximum Special Tax Rate and Expected Special Tax Revenue for each Tax Zone shall be increased by the Tax Escalation Factor. CONTINGENT SPECIAL TAX RATES Tax Zone APNs Base Year* Rate Expected Contingent Special Tax Revenue 2 436-360-011, 436-360-013, 436-360-014 & 436-360-015 2021/22 $3,196.49/Acre $24,069.60 3 432-130-016, 432-130-017, 432-130-018, 432-130-020, 432-130-022 & 432-130-024 2022/23 $1,206.40/Acre $41,886.20 * On each July 1, commencing on July 1 of the Base Year, the Maximum Special Tax Rate and Expected Contingent Special Tax Revenue for each Tax Zone shall be increased by the Tax Escalation Factor. DocuSign Envelope ID: 6B2A4E50-F063-4054-8931-FAD75FF28AC8