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HomeMy WebLinkAbout2023-027 - ResolutionRESOLUTION NO. 2023-027 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, CERTIFYING THE RESULTS OF AN ELECTION AND ADDING TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 2022-01 (STREET LIGHTING SERVICES) OF THE CITY OF RANCHO CUCAMONGA, ANNEXATION NO. 2023-1 WHEREAS, the City Council of the City of Rancho Cucamonga, California (the "City Council") has previously formed Community Facilities District No. 2022-01 (Street Lighting Services) of the City of Rancho Cucamonga ("CFD No. 2022-01") pursuant to the Mello -Roos Community Facilities Act of 1982 (the "Act'), as amended, forthe purpose of financing certain municipal maintenance services; and WHEREAS, acting pursuant to the Act, the City Council also authorized by the adoption of Resolution No. 2022-063 (the 'Resolution Authorizing Future Annexation") the annexation in the future of territory to CFD No. 2022-01, such territory designated as Future Annexation Area, Community Facilities District No. 2022-01 (the "Future Annexation Area'); and WHEREAS, at this time the unanimous consent to the annexation of certain territory located within the Future Annexation Area to CFD No. 2022-01 has been received from the property owner of such territory, and such territory has been designated as ANNEXATION NO. 2023-1 (the "Territory"); and WHEREAS, less than twelve (12) registered voters have resided within the Territory for each of the ninety (90) days preceding the election date established for the Territory, therefore, pursuant to the Act the qualified elector of the Territory shall be the "landowner," as such term is defined in Government Code Section 53317(f), of such Territory and such landowner who is the owner of record as of the applicable election date, orthe authorized representative thereof, shall have one vote foreach acre or portion of an acre of the parcel of land that landowner owns within such Territory; and WHEREAS, the time limit specified by the Act for conducting an election to submit the levy of the special taxes on the Territory to the qualified elector thereof and the requirements for impartial analysis and ballot arguments have been waived with the unanimous consent of the qualified elector of the Territory; and WHEREAS, the City Clerk of the City of Rancho Cucamonga has caused a ballot to be distributed to the qualified elector of the Territory, has received and canvassed such ballot and made a report to the City Council regarding the results of such canvass, a copy of which is attached as Exhibit "A" hereto and incorporated herein by this reference; and Resolution No. 2023-027 — Page 1 of 6 WHEREAS, at this time the measure voted upon and such measure did receive the favorable vote of the qualified elector of the Territory, and the City Council desires to declare the results of the election; and WHEREAS, a map showing the Territory and designated as Annexation Map No. 2023-1 (the "Annexation Map'), a copy of which is attached as Exhibit "B" hereto and incorporated herein by this reference, has been submitted to this legislative body. NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Rancho Cucamonga, California, acting as the legislative body of Community Facilities District No. 2022-01, as follows: Section 1. Recitals. The above recitals are true and correct. Section 2. Findings. This legislative body does hereby further determine as follows: A. The unanimous consent as described in the recitals hereto to the annexation of the Territory to CFD No. 2022-01 has been given by the owner of the Territory and such consent shall be kept on file in the Office of the City Clerk of the City of Rancho Cucamonga. B. Less than twelve (12) registered voters have resided within the Territory for each of the ninety (90) days preceding the election date established for the each of the parcels located within the Territory, therefore, pursuant to the Act the qualified elector for the Territory shall be the "landowner' of the Territory as such term is defined in Government Code Section 53317(f). C. The qualified elector of the Territory has voted in favor of the levy of special taxes on the Territory upon its annexation to CFD No. 2022-01. Section 3. Territory. The boundaries and parcels of property within the Territory and on which special taxes will be levied in order to pay for the costs and expenses of authorized municipal maintenance services are shown on the Annexation Map as submitted to and hereby approved by this legislative body. Section 4. Declaration of Annexation. This legislative body does hereby determine and declare that the Territory, and each parcel therein, is now added to and becomes a part of CFD No. 2022-01. The City Council, acting as the legislative body of CFD No. 2022-01, is hereby empowered to levy the authorized special tax within the Territory. Section 5. Notice. Immediately upon adoption of this Resolution, notice shall be given as follows: Resolution No. 2023-027 — Page 2 of 6 A. A copy of the Annexation Map as approved shall be filed in the Office of the County Recorder no later than fifteen (15) days after the date of adoption of this Resolution. B. An Amendment to the Notice of Special Tax Lien (Notice of Annexation) shall be recorded in the Office of the County Recorder no later than fifteen (15) days after the date of adoption of this Resolution. Section 6. Effective Date. This Resolution shall become effective upon its adoption. Resolution No. 2023-027 — Page 3 of 6 PASSED, APPROVED, and ADOPTED this 1511 day of March, 2023. I(yn a Kennedy, Ma ror Pro T ATTEST: ffnice C. Reynolds,Co Clerk STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO ) as CITY OF RANCHO CUCAMONGA ) I, Janice C. Reynolds, City Clerk of the City of Rancho Cucamonga, do hereby certify that the foregoing Resolution was duly passed, approved, and adopted by the City Council of the City of Rancho Cucamonga, at a Regular Meeting of said Council held on the 1 S" day of March, 2023. AYES: Hutchison, Kennedy, Scott, Stickler NOES: None ABSENT: Michael ABSTAINED: None Executed this 16t' day of March, 2023, at Rancho Cucamonga, California. Resolution No. 2023-027 — Page 4 of 6 EXHIBIT "A" CERTIFICATE OF ELECTION OFFICIAL AND STATEMENT OF VOTES CAST STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) as, CITY OF RANCHO CUCAMONGA) The undersigned, ELECTION OFFICIAL OF THE CITY OF RANCHO CUCAMONGA. COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, DOES HEREBY CERTIFY that pursuant to the provisions of Section 53326 of the Government Code and Division 12, commencing with Section 17000 of the Elections Code of the Slate of California, I did canvass the returns of the votes cast at the COMMUNITY FACILITIES DISTRICT NO. 2022-01 (STREET LIGHTING SERVICES) OF THE CITY OF RANCHO CUCAMONGA SPECIAL ELECTION ANNEXATION NO.2023-1 held on the election date established for each parcel located within the territory included in Annexation No. 2023-1 I FURTHER CERTIFY that this Statement of Votes Cast shows the whole number of voles cast in the area proposed to be annexed to Community Facilities District No. 2022-01 (Street Lighting Services) of the City of Rancho Cucamonga for or against the Measure are full, true and correct. VOTES CAST ON PROPOSITION 1: YES NO WITNESS my hand this --ap� day of ua.r , 20s3 LECTION OFFICIAL CITY CLERK CITY OF RANCHO CUCAMONGA OF THE STATE OF CALIFORNIA Resolution No. 2023-027 — Page 5 of 6 EXHIBIT "B" ANNEXATION MAP 8 x pp 9gff8 p Se jj 5gy 1_ eNI lip q o p 03< r i'Z o Oh OLL S' z w 3 0 ; Cawr/+o� O W. Z pU'ZO Q wrap � it f 70�7 O J� V. UQ >w z III J f xo 72 LLO I If l vex Q U O j I �€ —I— I }�';�fy"4�1a�°€i1'e @6 yt{p'3p}p5�erYii iil�E��Qe€�pipll[Epr i I �enr roxrun vr] Aw.,v .. _ i HIM, ' �11i�$%iyl�Y 166Ej6 3 bolo€ 7 it s@i1tp; F as1$p�y i"E��°j ^;p gt�€�i°�� 3 Resolution No. 2023-027 — Page 6 of 6 RECORDING REQUESTED BY City of Rancho Cucamonga AND WHEN RECORDED MAIL DOCUMENT TO: NAME City Clerk STREET ADDRESS P.O. Box 807 Z;;�ooETE° Rancho Cucamonga, CA 91730 Electronically Recorded in Official Records San Bernardino County Assessor -Recorder -County Clerk DOC# 2023-0078145 04/04/2023 Titles:1 Pages:16 01:41 PM SAN Fees $59.00 Taxes $0.00 F3010 CA SB2 Fee $0.00 Total $59.00 M-91T90"T. rrrA;Lopgctxslraxti&lj&L4DiLit�� Amendment to the Notice of Special Tax Lien (Notice of Annexation - Annexation No. 2023-1) Title of Document THIS COVER SHEET ADDED TO PROVIDE ADEQUATE SPACE FOR RECORDING INFORMATION DOC #2023-0078145 Page 2 of 16 City of Rancho Cucamonga 10500 Civic Center Dr., Rancho Cucamonga, CA 91730 AMENDMENT TO THE NOTICE OF SPECIAL TAX LIEN (NOTICE OF ANNEXATION — ANNEXATION NO. 2023-1) Pursuant to the requirements of Section 3117.5 of the Streets and Highways Code and Section 53339.8 of the Government Code, the undersigned City Clerk of the City of Rancho Cucamonga, County of San Bernardino, State of California, acting for and on behalf COMMUNITY FACILITIES DISTRICT NO. 2022-01 (STREET LIGHTING SERVICES) OF THE CITY OF RANCHO CUCAMONGA ("CFD No. 2022-01 ") thereof, HEREBY GIVES NOTICE that a lien is hereby imposed on certain real property annexed to the Community Facilities District to secure payment of a special tax which the City Council of the District, acting in its authority as the legislative body of CFD No. 2022-01, is authorized to be levied for the purpose of paying for the provision of municipal maintenance services described in Exhibit "A" attached hereto and by this reference made a part hereof. The special tax is authorized to be levied on the property described in Exhibit "B" attached hereto (the "Annexed Property") which has been annexed to CFD No. 2022-01 and the lien of the special tax is a continuing lien that shall secure each annual levy of the special tax and shall continue in force and effect until the special tax ceases to be levied and a notice of cessation of special tax is recorded in accordance with Section 53330.5 of the Government Code. The rates, method of apportionment, and manner of collection of the authorized special tax are as set forth in Exhibit "C" attached hereto and by this reference made a part hereof. The special tax may not be prepaid. Notice is further given that upon the recording of this notice in the Office of the County Recorder, the obligation to pay the special tax levy shall become a lien upon the Annexed Property in accordance with Section 3115.5 of the Streets and Highways Code. The names of the owner(s) of the Annexed Property as they appear on the last secured assessment roll as of the date of recording of this Notice and the Assessor's tax parcel(s) numbers of all parcels or any portion thereof which are included within the Annexed Property are as set forth on the attached, referenced and incorporated Exhibit "D11 Reference is made to the following: 1 of 15 DOC #2023-0078145 Page 3 of 16 1. Notice of Special Tax Lien for the original Community Facilities District recorded June 10, 2022, as Document No. 2022-0211027 in the Office of the County Recorder for the County of San Bernardino, State of California, which Notice is amended by the recordation of this document. 2. Boundary map of the original Community Facilities District recorded at Book 90, Page 22, Document No. 2022-0167399 of Maps of Assessment and Community Facilities Districts in the Office of the County Recorder for the County of San Bernardino, State of California. 3. Boundary map of Annexation Area No. 2023-1 recorded March 22, 2023, Book 91, Page 3, Document No. 2023-0067166, Maps of Assessment and Community Facilities Districts in the Office of the County Recorder for the County of San Bernardino, State of California. 2of15 DOC #2023-0078145 Page 4 of 16 For further information concerning the current and estimated future tax liability of owners or purchasers of real property subject to this special tax lien, interested persons should contact the following: City of Rancho Cucamonga Finance Department 10500 Civic Center Dr., Rancho Cucamonga, CA 91730 909-774-2482 DATED: Mako' 2023 W"am� itCie-rk tCity of Rancho Cucamonga State of California pepoty 7D I acAo r of Cd-y 3 of 15 DOC #2023-0078145 Page 5 of 16 EXHIBIT "A" The City may finance any services which may be funded with proceeds of the special tax of CFD No. 2022-01, authorized pursuant to Section 53313 of the Act, including but not limited to all costs attributable to maintaining and servicing street lights, traffic signals and appurtenant facilities throughout CFD No. 2022-01. Services include personnel, materials, contracting services, utilities, and all necessary costs associated with the maintenance, replacement, and repair required to keep the improvements in operational and satisfactory condition. In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay "Administrative Expenses," as said term is defined in the Rate and Method. The above services shall be limited to those provided within the boundaries of CFD No. 2022-01 or for the benefit of the properties within the boundaries of CFD No. 2022-01, as the boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2022-01 only to the extent that they are in addition to those provided in the territory of CFD No. 2022-01 before CFD No. 2022-01 was created or such properties are annexed to CFD No. 2022-01. 4 of 15 D[XC#2O23-OO78145 Page Gof1G The Property is identified and described as: Assessor's Parcel Number/a\:O220-291-48-O0OOand O22Q-201-54-OOOO 5uf15 DOC #2023-0078145 Page 7 of 16 N i H • !,IN V I DRI 1 ! A Special Tax, as hereinafter. defined, shall be levied and collected for Community Facilities District No. 2022-01 (Street Lighting Services) of the City of Rancho Cucamonga ("CFD No. 2022-01 ") each Fiscal Year commencing in Fiscal Year 2022/23, in an amount determined by the application of the procedures below. All Taxable Property, as hereinafter defined, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meaning: "Accessory Dwelling Unit" or "ADU" means a secondary residential unit of limited size, as defined in California Government Code Section 65852.2, as may be amended from time to time, that is accessory to a single -unit dwelling. The ADU may be on the same Assessor's Parcel as the single -unit dwelling or on a separate Assessor's Parcel. For purposes of clarification, where an ADU and primary Unit are on the same Assessor's Parcel, the ADU located on such Assessor's Parcel is considered a separate Unit from the primary Unit on such Assessor's Parcel for purposes of the Special Tax. Should an Assessor's Parcel contain only an ADU, such Assessor's Parcel will be taxed as an ADU only. "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 that the Assessor's Parcel Map or Assessor's Data shows no acreage, the Acreage for any Assessor's Parcel may be determined by the CFD Administrator based upon the applicable condominium plan, final map, parcel map or calculated using available spatial data and GIS. "Act" means the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1, Division 2 of Title 5 of the Government Code of the State. "Administrative Expenses" means the actual or reasonably estimated costs directly related to the administration of CFD No. 2022-01 including, but not limited to, the following: 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 Tax, 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 Tax; 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 action arising from any delinquent Special Tax in CFD No. 2022-01. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2022-01 for any other administrative purposes, including, but not limited to, attorney's fees. 6of15 DOC #2023-0078145 Page 8 of 16 "Annual Services Costs" means the amounts required to fund services authorized to be funded by CFD No. 2022-01. "Annual Special Tax Requirement" means that amount with respect to CFD No. 2022-01 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) any amount required to establish or replenish any reserve or replacement fund established in connection with CFD No. 2022-01, and (4) any reasonably anticipated delinquent Special Tax based on the delinquency rate for any Special Tax levied in the previous Fiscal Year. "Assessor's Data" means Units, Acreage, or other information contained in the records of the County Assessor for each Assessor's Parcel. "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 Assessor for purposes of identification. "Boundary Map" means that map recorded with the County recorder's office on May 4, 2022, in Book 90 at Page 22 as Document Number 2022-0167399. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Annual Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD No. 2022-01" means Community Facilities District No. 2022-01 (Street Lighting Services) of the City of Rancho Cucamonga. "City" means the City of Rancho Cucamonga. "City Council" means the City Council of the City, acting as the legislative body of CFD No. 2022-01. "County" means the County of San Bernardino, California. "County Assessor" means the County Assessor of the County. "Developed Property" means, in any Fiscal Year, all Taxable Property in CFD No. 2022-01 for which a building permit for new construction was issued by the City prior to April 1 of the preceding Fiscal Year. "Exempt Property" means all Assessors' Parcels within the boundary of CFD No. 2022-01 which are exempt from the Special Tax pursuant to Section E. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "GIS" means a geographic information system. "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 C. 7of15 DOC #2023-0078145 Page 9 of 16 "Mixed Use Property" means all Assessor's Parcels that have been classified by the City to allow multiple uses on each such Assessor's Parcel. For an Assessor's Parcel of Mixed Use Property, each property use thereon is subject to taxation pursuant to section C below. The Acreage used to calculate the Special Tax for a portion of an Assessor's Parcel that is Non - Residential Property shall include only the share of such Assessor's Parcel that will be used as Non -Residential Property, to include structures, parking and other Parcel area. "Multi -Family Residential Property" means, in any Fiscal Year, all Assessor's Parcels of Developed Property with two 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. Multi -Family Property also means, in any Fiscal Year, all Assessor's Parcels of Developed Property with one Unit with a single Assessor's Parcel Number that is a condominium pursuant the definition in Civil Code Section 4125 or a townhome. "Non -Residential Property" means all Assessor's Parcels of Developed Property within the boundaries of CFD 2022-01 for which a building permit(s) has been issued for a non-residential structure(s). "Open Space Property" means property within the boundaries of CFD No. 2022-01 which (i) has been designated with specific boundaries and Acreage on a final subdivision map as open space, (ii) is classified by the County Assessor as open space, (iii) has been irrevocably offered for dedication as open space to the federal government, the State, the County, the City, or any other public agency, or (iv) is encumbered by an easement or other restriction required by the City limiting the use of such property to open space. "Property Owner's Association" means any property owner's association. As used in this definition, a Property Owner's Association includes any home -owner's association, condominium owner's association, master or sub -association or non-residential owner's association. "Property Owner's Association Property" means any property within the boundaries of CFD No. 2022-01 which is (a) owned by a Property Owner's Association or (b) designated with specific boundaries and acreage on a final subdivision map as property owner association property. "Proportionately" means for Developed Property and Undeveloped Property, that the ratio of the Special Tax levy to the Maximum Annual Special Tax is equal within each respective Tax Zone. "Public Property" means any property within the boundaries of CFD No. 2022-01 which (i) is owned by a public agency, (ii) has been irrevocably offered for dedication to a public agency, or (iii) is designated with specific boundaries and Acreage on a final subdivision map as property which will be owned by a public agency. For purposes of this definition, a public agency includes the federal government, the State, the County, the City, school districts, or any other public agency. "Rate and Method of Apportionment" means this Rate and Method of Apportionment of Special Tax for CFD No. 2022-01. 8of15 DOC #2023-0078145 Page 10 of 16 "Single Family Residential Property" means all Assessor's Parcels of Developed Property with a residential structure intended as a single primary Unit. "Special Tax" means the annual special tax to be levied in each Fiscal Year on each Assessor's Parcel of Taxable Property to fund the Annual Special Tax Requirement. "State" means the State of California. "Tax Escalation Factor" means on July 1 of each Fiscal Year, commencing on July 1, 2023, the Maximum Special Tax as shown in Section C shall be increased by a minimum of two percent (2%) to a maximum of six percent (6%), determined on an annual basis as needed to satisfy the Special Tax Requirement. "Tax Zone" means an area within which the Special Tax may be levied pursuant to this Rate and Method of Apportionment. All the Taxable Property within CFD No. 2022-01 at the time of its formation is within Tax Zone Nos. 1 and 6. Additional Tax Zones may be created when property is annexed to CFD No. 2022-01, and a separate Maximum Special Tax shall be identified for property within each 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 No. 2022-01 shall be identified by Assessor's Parcel number in the annexation documents at the time of annexation. "Taxable Property" means all the Assessor's Parcels within the boundaries of CFD No. 2022- 01 that are not exempt from the Special Tax pursuant to law or Section E below. "Undeveloped Property" means all the Assessor's Parcels of Taxable Property within the boundaries of CFD No. 2022-01 that are not Developed Property. "Unit" means an individual residential living space. The number of Units assigned to each Assessor's Parcel may be determined by (i) referencing Assessor's Data, (ii) site surveys and physical unit counts, and/or (iii) other research by the CFD Administrator. "Welfare Exempt Property" means, in any Fiscal Year, all Parcels within the boundaries of CFD No. 2022-01 that have been granted a welfare exemption by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code. B. 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 No. 2022-01. If any Assessor's Parcel Numbers are no longer valid, the CFD Administrator shall determine the new Assessor's Parcel Number or Numbers in effect for the then -current Fiscal Year. To the extent a Parcel or Parcels of Taxable Property are subdivided, consolidated, or otherwise reconfigured, the Maximum Special Tax shall be assigned to the new Assessor's Parcels Numbers pursuant to Section C. 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 or Acreage each Parcel contains; (iv) the property type, i.e., Single Family Residential Property, Non -Residential Property, etc.; and (v) the Annual Special Tax Requirement for the Fiscal Year. 9of15 D[XC#2O23-OO78145 Page 11of1G C. MAXIMUM ANNUAL SPECIAL TAX RATE The Maximum Special Tax for each Assessor's Parcel of Taxable Property within Tax Zone Nos. 1-8 shall be assigned according to the tables on the following pages. In some instances, an Assessor's Parcel of Developed Property may contain more than one property land use. The W1axirnunn Special Tax assigned to on Assessor's Parcel of Mixed Use Property eho|| be the sum of the Maximum Special Tax for all property uses located on that Auaeeoor`e Parcel. Additionally, Accessory Ovvd|ing Units will be levied at 50Y6 of the applicable Maximum Special Tax Rate for the property type ofthe primary Unit. Tax Zone No. 1 Property Land Use 2022/23 Maximum Special Tax Rate Single -Family Residential Property $22.67 per Unit Multi -Family Residential Property $22.67 per Unit Non -Residential Property $45.34 per Acre Undeveloped Property $200.00 per Parcel *On each July 1, commencing on July 1, 2023, the Maximum Special Tax Rate shall beIncreased bvthe Tax Escalation Factor Tax Zone No. 2 Property Land Use 2022/23 Maximum Special Tax Rate Single -Family Residential Property $75.17 per Unit Multi -Family Residential Property $75.17 per Unit Undeveloped Property $200.00 per Parcel *On each July Y, commencing on July 1, 2023 the Maximum Special Tax Rate shall boIncreased bvthe Tax Escalation Factor 10of15 DOC #2023-0078145 Page 12 of 16 Tax Zone No. 3 Land Use 2022/23 Maximum Special Tax Rate -Property Single -Family Residential Property $47.15 per Unit Multi -Family Residential Property $47.15 per Unit Non -Residential Property $94.30 per Are Undeveloped Property $200.00 per Parcel *On each July 1, commencing on July 1, 2023, the Maximum Special Tax Rate shall be Increased by the Tax Escalation Factor Tax Zone No. 4 -Property Land Use 2022/23 Maximum Special Tax Rate Single -Family Residential Property $28.96 per Unit Multi -Family Residential Property $28.96 per Unit Non -Residential Property $57.92 per Acre Undeveloped Property $200.00 per Parcel *On each July 1, commencing on July 1, 2023, the Maximum Special Tax Rate shall be Increased by the Tax Escalation Factor Tax Zone No. 5 Land Use 2022/23 Maximum Special Tax Rate -Property Single -Family Residential Property $63.79 per Unit Undeveloped Property $200.00 per Parcel *On each July 1, commencing on July 1, 2023, the Maximum Special Tax Rate shall be Increased by the Tax Escalation Factor 11 of 15 DOC #2023-0078145 Page 13 of 16 Tax Zone No. 6 Property Land Use 2022/23 Maximum Special Tax Rate Non -Residential Property $51.40 per Acre Undeveloped Property $200.00 per Parcel *On each July 1, commencing on July 1, 2023, the Maximum Special Tax Rate shall be Increased by the Tax Escalation Factor Tax Zone No. 7 Property Land Use 2022/23 Maximum Special Tax Rate Single -Family Residential Property $58.64 per Unit Multi -Family Residential Property $58.64 per Unit Non -Residential Property $117.28 per Acre Undeveloped Property $200.00 per Parcel *On each July 1, commencing on July 1, 2023, the Maximum Special Tax Rate shall be Increased by the Tax Escalation Factor Tax Zone No. 8 Property Land Use 2022/23 Maximum Special Tax Rate Single -Family Residential Property $37.79 per Unit Multi -Family Residential Property $37.79 per Unit Non -Residential Property $75.58 per Acre Undeveloped Property $200.00 per Parcel *On each July 1, commencing on July 1, 2023, the Maximum Special Tax Rate shall be Increased by the Tax Escalation Factor On July 1 of each Fiscal Year, commencing on July 1, 2023, the Maximum Special Tax for Tax Zone Nos. 1-8 shall be increased by an amount equal to the Tax Escalation Factor. A different Maximum Special Tax rate and Tax Escalation Factor may be identified in Tax Zones added to CFD No. 2022-01 as a result of future annexations. 12 of 15 D[XC#2O23-OO78145 Page 14of1G O. METHOD OF APPORTIONMENT OF THE SPECIAL TAX All Taxable Property shall be subject to o Special Tax defined as follows. The Special Tax shall be levied each Fiscal Year hvthe CFDAdministnakoc The Annual Special Tax Requirement shall be apportioned to each Parcel within CFD No. 2022-01 by the method GhOVVn below. First: Determine the Annual Special Tax Requirement. Second: Levy the Special Tax on each Parcel of Developed Property and Undeveloped Property, Proportionate|y, up to the applicable Maximum Special Tax. Under no circumstances will the Special Tax on any Assessor's Parcel used for private residential purposes be increased by more than 10% as a consequence of delinquency or default by the owner of any other Assessor's Parcel within CFO No. 2022-01. E. EXEMPTIONS Notwithstanding any other provision Of this Rate and Method of Apportionment Of Special Tax, no Special Tax shall be levied on Property Owner's Association Propertv, Assessor's Parcels with public or utility easements making iDlpr8CtiC8{ their uU|iz8UOD for any use Other than the purposes set forth in the aaeen)ent, or Public Property, except as otherwise provided in Sections 53317.3. 53317.5. and 533401 of the Act. Welfare Exempt Property shall thereafter be exempt from the Special Tax for as long as the property qualifies as Welfare Exempt Property. F. APPEAL OF SPECIAL TAX LEVY Any property owner may file G written 8pp88| Of the Special Tax with the CFO Administrator C|@iDliOg that the amount or 8pp|iC8UOO Of the Special 7-8x is not correct. The appeal must be filed not later than one calendar year after having paid the 8p8Ci8| Tax that is disputed, and the 8pp8||8Ot O0uai be current in all payments of the Special Tax. In addition' during the term of the appeal prooaoa. all Special Ter levied must be paid on or before the payment dote established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFC) Administrator shall review the Gppe8|, meet with the appellant if the CFD Administrator deems nnoeeoary, and advise the appellant ofits determination. If the property OVVD0r disagrees with the CFO Administrator's d8Ci8iOD relative to the appeal, the OVVOer may then file a written appeal with the City COUDCi| vvhOS8 subsequent decision shall be final and binding OD all interested parties. If the decision of the CF[) AdDliDiSt[8t0F Or subsequent decision by the City Council requires the Special Tax to be modified or changed in favor of the pn]p8dx owner, the CFO Administrator Gh8|| determine if sufficient Gp8Ci3| Tax revenue is available to make a cash refund. If a cash refund cannot be made, then an adjustment shall be made to credit future Special Taxes. This procedure shall be 8XC|USiV8 and its 8XhauSUOD by any property OvvDe[ shall be 8 condition precedent to filing any |8g8| 3CtiOD by such owner. 13of15 DOC #2023-0078145 Page 15 of 16 G. INTERPRETATION OF RATE AND METHOD OF APPORTIONMENT The City Council may, by resolution or ordinance, interpret, clarify and/or revise this Rate and Method of Apportionment to correct any inconsistency, vagueness, or ambiguity as it relates to the Special Taxes, method of apportionment, classification of Assessor's Parcels, or any definition used herein, as long as such correction does not materially affect the levy and collection of Special Taxes. In addition, the interpretation and application of any section of this document shall be at the City's discretion. H. 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 No. 2022-01, and may collect delinquent Special Taxes through available methods. A Special Tax shall be levied commencing in Fiscal Year 2022/23 to the extent necessary to satisfy the Annual Special Tax Requirement and shall be levied for as long as required to satisfy the Annual Special Tax Requirement. PREPAYMENT OF SPECIAL TAX The Special Tax may not be prepaid. 14 of 15 DOC #2023-0078145 Page 16 of 16 ASSESSOR'S PARCEL NUMBER(S) OWNER(S) 0229-291-46-0000 SPEEDWAY COMMERCE CENTER DEVELOPMENT, LLC 0229-291-54-0000 SPEEDWAY COMMERCE CENTER DEVELOPMENT, LLC 15 of 15