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HomeMy WebLinkAbout18-105 - Resolution RESOLUTION NO. 18-105 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, DECLARING ITS INTENTION TO ESTABLISH THE RESORT AT EMPIRE LAKES COMMUNITY FACILITIES DISTRICT NO. 2018-01 OF THE CITY OF RANCHO CUCAMONGA 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 Rancho Cucamonga (the"City Council"), in response to a petition received from the owners of certain property located within the City of Rancho Cucamonga identified as Assessor Parcel Numbers 0210-102-01-0-000, 0210-102-02-0-000, 0210-102-03-0-000, 0210-102-04-0-000, 0210-102-05-0-000, 0210-102-06-0-000, 0210-102-07-0-000, 0210-102-08-0-000, 0210-102-09-0-000, and 0210-102-10-0-000 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 THE RESORT AT EMPIRE LAKES COMMUNITY FACILITIES DISTRICT NO. 2018-01 OF THE CITY OF RANCHO CUCAMONGA (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 Rancho Cucamonga as follows: 1. Recitals. The above recitals are all true and correct. 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. 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. Resolution No. 18-105 - Page 1 of 13 4. Name of District. The name of the proposed Community Facilities District to be established shall be known and designated as "THE RESORT AT EMPIRE LAKES COMMUNITY FACILITIES DISTRICT NO. 2018-01 OF THE CITY OF RANCHO CUCAMONGA". 5. 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. 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. 7. Public Hearing. NOTICE IS GIVEN THAT ON DECEMBER 19, 2018, AT THE HOUR OF 7:00 O'CLOCK P.M., IN THE REGULAR MEETING PLACE OF THE CITY COUNCIL BEING THE COUNCIL CHAMBERS, CITY HALL, LOCATED AT 10500 CIVIC CENTER DRIVE, RANCHO CUCAMONGA, 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. Resolution No. 18-105 - Page 2 of 13 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. 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. 9. 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. 10. 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 the SC Rancho Development Corporation 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. Resolution No. 18-105 - Page 3 of 13 PASSED, APPROVED, AND ADOPTED this 7th day of November, 2018. L. D nis Mic ael, Mayor ATTEST: feel J nice C. Reynolds, Clerk STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss 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 7th day of November 2018. AYES: Alexander, Kennedy, Michael, Spagnolo, Williams NOES: None ABSENT: None ABSTAINED: None Executed this 8th day of November, 2018, at Rancho Cucamonga, California. ice C. Reynolds, Clerk Resolution No. 18-105 - Page 4 of 13 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) (i) the maintenance of streets, public trails and trailhead improvements, landscaped areas, parkways, medians, and parks and recreation improvements and public right-of-ways, including, but not limited to, street trees, fencing, irrigation systems, sidewalks, drainage systems, signs, monuments, graffiti removal, replacement, repair or rehabilitation of playground equipment, sports fields, parking lots, restrooms, sport field lighting, street lighting, traffic signals and apartment facilities and other improvements placed in parks, trails medians, landscaped areas, or public right-of-ways, furnishing of water, electric current or energy, gas, or other illuminating agent for the operation of any improvement within the City, (ii) the equipping, furnishing and maintenance of public safety improvements; (iii) the furnishing of any service authorized under the Act, as may be amended from time to time, (iv) the furnishing of electric current, materials, contracted services, and the necessary maintenance, replacement, and repair required to keep such improvements in operational and satisfactory condition; and (v) the establishment of a reserve fund for the replacement of any such improvements; and (b) the incidental expenses which will be incurred, including but not limited to: (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. Resolution No. 18-105 - Page 5 of 13 EXHIBIT "B" RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX RATE AND METHOD OF APPORTIONMENT FOR THE RESORT AT EMPIRE LAKES COMMUNITY FACILITIES DISTRICT NO. 2018-01 OF THE CITY OF RANCHO CUCAMONGA A Special Tax shall be levied and collected within The Resort at Empire Lakes CommunityFacilities District p No. 2018-01 ("CFD 2018-01") of the City of Rancho Cucamonga each Fiscal Year commencing with Fiscal Year 2019/20 in an amount determined by the application of the procedures described below. All of the real property (as defined below) in CFD 2018-01, unless exempted by law or by the provisions hereof, shall be taxed for the purposes of, to the extent, and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meaning: "Accessory Unit" means a secondary residential unit of limited size (e.g., granny cottage, second unit) that shares an Assessor's Parcel with a Residential Dwelling Unit of Residential Property. "Acreage" or "Acre" 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 geographic information systems (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 Code of the State of California. "Administrative Expenses" means the actual or reasonably estimated costs directly related to the administration of CFD 2018-01 including, but not limited to, the following: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City, the CFD Administrator, or both); the costs of collecting the Special Taxes (whether by the County, the City, or otherwise); the costs to the City, CFD 2018-01, or any designee thereof in complying with disclosure requirements; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; and the costs of the City, CFD 2018-01, or any designee thereof related to any appeal of the levy or application of the Special Tax. Administrative Expenses shall also include amounts estimated or advanced by the City or Empire Lakes CFD 2018-01 for any other administrative purposes, including, but not limited to, attorney's fees, proposed formation of CFD 2018-01, or any other expenses incidental to the provision of the Services. "Assessor's Data" means Acreage or other Assessor's g o s Parcel information contained in the records of the Assessor of the County. Resolution No. 18-105 - Page 6 of 13 "Assessor's Parcel" means a lot or parcel shown on 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 an Assessor's Parcel number. "Authorized Services" means the public services authorized to be financed, in whole or in part, by CFD 2018-01 which are generally described as follows: (a) (i) the maintenance of streets, public trails and trailhead improvements, landscaped areas, parkways, medians, and parks and recreation improvements and public right-of-ways, including, but not limited to, street trees, fencing, irrigation systems, sidewalks, drainage systems, signs, monuments, graffiti removal, replacement, repair or rehabilitation of playground equipment, sports fields, parking lots, restrooms, sport field lighting, street lighting, traffic signals and appurtenant facilities and other improvements placed in parks, trails medians, landscaped areas, or public right- of-ways, furnishing of water, electric current or energy, gas, or other illuminating agent for the operation of any improvement within the City; (ii)the equipping,furnishing, and maintenance of public safety improvements; (iii) the furnishing of any service authorized under the Act, as may be amended from time to time; (iv) the furnishing of electric current, materials, contracted services, and the necessary maintenance, replacement, and repair required to keep such improvements in operational and satisfactory condition; and (v) the establishment of a reserve fund for the replacement of any such improvements; and (b) the incidental expenses which will be incurred, including but not limited to: (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. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "City" means the City of Rancho Cucamonga. "City Council" means the City Council of the City of Rancho Cucamonga, acting as the legislative body of CFD 2018-01. "County" means the County of San Bernardino. "Developed Property" means for each Fiscal Year, all Taxable Property, for which a building permit was issued prior to the March 1st preceding the Fiscal Year for which the Special Tax is being levied. "CFD 2018-01" means The Resort at Empire Lakes Community Facilities District No. 2018-01 of the City of Rancho Cucamonga. "Equivalent Benefit Unit" or "EBU" means the units assigned to all Assessor's Parcels of Developed Property based on the classification for their parcel and Acreage pursuant to Section B Resolution No. 18-105 - Page 7 of 13 of this Rate and Method of Apportionment. "Exempt Property" means all Assessor's Parcels that 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. "Homeowner Association Property" means any property within the boundaries of CFD 2018-01 which is owned by a homeowners' or property owners' association, including any master or sub- association as of January 1 of the prior Fiscal Year. "Maximum Annual Special Tax" means the maximum Special Tax, determined in accordance with the provisions of Section C below, which may be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property. "Mixed Use Property" means all Assessor's Parcels that have been classified by the City to allow both Residential Property and Non-Residential Property uses on each such Assessor's Parcel. For an Assessor's Parcel of Mixed Use Property, each Land Use Class thereon is subject to taxation pursuant to the provisions of Sections B and C regardless of the geographic orientation of such Land Use Classes on such Assessor's Parcel. "Non-Residential Property" means all Assessor's Parcels of Developed Property within the boundaries of CFD 2018-01 for which a building permit(s) has been issued for a non-residential structure(s). "Proportionately" means for Taxable Property that the ratio of the Special Tax levy to the Maximum Annual Special Tax is equal for all Assessor's Parcels within each classification (Residential Property, Non-Residential Property, and Undeveloped Property) within CFD 2018-01. "Public Property" means any property which (a) is owned by a public agency, (b) has been irrevocably offered for dedication to a public agency, or (c) 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 of California, the County, the City, or any other public agency. "Residential Dwelling Unit" means any residential dwelling unit constructed or to be constructed for habitable living purposes located on an Assessor's Parcel as indicated in the records of the County Assessor, or, if not indicated, as otherwise determined by the CFD Administrator based on available official information, including building permit(s) issued. An Accessory Unit that shares an Assessor's Parcel with a Residential Dwelling Unit of Residential Property shall not be considered a separate Residential Dwelling Unit for purposes of calculating the Special Tax. "Residential Property" means all Assessor's Parcels of Developed Property within the boundaries of CFD 2018-01 for which a building permit(s) has been issued for purposes of constructing one or more Residential Dwelling Units. "Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor's Parcel of Resolution No. 18-105 - Page 8 of 13 Taxable Property to fund the Special Tax Requirement. "Special Tax Requirement" means that amount of Special Tax revenue required in any Fiscal Year for CFD 2018-01 to: (i) pay for the Authorized Services; (ii) pay Administrative Expenses; (iii) pay any amounts required to establish or replenish any repair and contingency funds, capital improvement funds, or reserve funds for CFD 2018-01; and (iv) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year; less (v) a credit for funds available to reduce the annual Special Tax levy, as determined by the CFD Administrator. "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD 2018-01 that are not exempt from the Special Tax pursuant to law or Section E below. "Undeveloped Property" means each Assessor's Parcel of Taxable Property within the boundaries of CFD 2018-01 that is not classified as Developed Property. B. ASSIGNMENT TO LAND USE CATEGORIES AND EBUS On, or around, July 1 of each Fiscal Year, the CFD Administrator shall determine the valid Assessor's Parcel numbers for the current Fiscal Year for all property within CFD 2018-01. Each Assessor's Parcel of Taxable Property within CFD 2018-01 shall be classified as Residential Property, Non- Residential Property, Mixed Use Property, or Undeveloped Property, and shall be subject to the levy of annual Special Taxes determined pursuant to Section C below. For each Assessor's Parcel of Developed Property EBUs shall be assigned according to the table below: Property Land Use Equivalent Benefit Unit Assignment Residential Property 1 EBU per Residential Dwelling Unit Non-Residential Property 1 Acre 2 EBUs per Parcel or less Non-Residential Property 2 EBUs per Acre or portion thereof greater than 1 Acre The EBU assignment for each Assessor's Parcel of Mixed Use Property is equal the total of (i) the Mixed Use Property Assigned Special Tax that would be applicable to such Assessor's Parcel if it was classified only as Residential Property and (ii) the Assigned Special Tax that would be applicable to such Assessor's Parcel if it was classified as Non-Residential Property. Resolution No. 18-105 - Page 9 of 13 - - 1 C. MAXIMUM ANNUAL SPECIAL TAX The Maximum Annual Special Tax for each Assessor's Parcel that may be levied in any Fiscal Year is shown below: Development Status 2019/20 Special Tax Developed Property $318.84 per EBU Undeveloped Property $5,234.20 per Acre On July 1 of each Fiscal Year,commencing on July 1,2020,the dollar amount per EBU for Developed Property and the dollar amount per acre of Undeveloped Property 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. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2019/20, and for each subsequent Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement and shall levy the Special Tax on each Assessor's Parcel of Taxable Property until the amount of Special Taxes equals the Special Tax Requirement. The Special Taxes shall be levied each Fiscal Year as follows: First: Determine the Special Tax Requirement. Second: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property at a rate of up to 100% of the applicable Maximum Annual Special Tax as needed to satisfy the Special Tax Requirement. Third: If additional moneys are needed to satisfy the Special Tax Requirement after the second step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property at a rate of up to 100% of the applicable Maximum Annual Special Tax to satisfy the Special Tax Requirement. E. EXEMPTIONS The CFD Administrator shall classify the following Assessor's Parcels as Exempt Property: (i) Public Property, (ii) Homeowner Association Property, and (iii) and Assessor's Parcels with public or utility easements making impractical their utilization for any use other than the purposes set forth in the easement. If the use of an Assessor's Parcel of Exempt Property changes so that such Assessor's Parcel is no longer classified as one of the uses set forth above that would make such Assessor's Parcel eligible to be classified as Exempt Property, such Assessor's Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property. 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. Resolution No. 18-105 - Page 10 of 13 F. REVIEW/APPEAL 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 three (3) calendar years 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, the CFD Administrator shall take any of the following actions, in order of priority, in order to correct the error: (i) amend the levy of Special Taxes for the current fiscal year prior to the payment date; (ii) require CFD 2018-01 to reimburse the current property owner the amount of the overpayment to the extent of available funds of CFD No. 2018-01; or (iii) grant a credit against, eliminate or reduce the future Special Taxes levied on the property owner's property within CFD No. 2018 1 in the amount of the overpayment. 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. G. 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. H. MANNER OF COLLECTION The annual Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the City may directly bill the Special Tax and may collect Special Taxes at a different time or in a different manner as necessary to meet its financial obligations. Resolution No. 18-105 - Page 11 of 13 I. PREPAYMENT OF SPECIAL TAX The Special Tax may not be prepaid. J. 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