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HomeMy WebLinkAbout2022-041 - Resolution • RESOLUTION NO. 2022-041 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, DECLARING ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2022-02 (INDUSTRIAL AREA SERVICES) OF THE CITY OF RANCHO CUCAMONGA AND TO AUTHORIZE THE LEVY OF A SPECIAL TAX THEREIN TO FINANCE INDUSTRIAL SERVICES WHEREAS, the City of Rancho Cucamonga (the "City") at this time desires to initiate proceedings to create a community facilities district pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982", being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the "Act") for the purpose of providing an alternative method of financing the municipal industrial services necessary to serve new development within such community facilities district; and WHEREAS, this community facilities district shall hereinafter be referred to as Community Facilities District No. 2022-02 (Industrial Area Services) of the City of Rancho Cucamonga ("CFD No. 2022-02"); and WHEREAS, the Act provides that the City Council may initiate proceedings to establish a community facilities City only if it has first considered and adopted local goals and policies concerning the use of the Act; and WHEREAS, this City Council has adopted local goals and policies as required pursuant to the Act; and WHEREAS, this City Council now desires to proceed to adopt its resolution of intention to initiate proceedings for the establishment of CFD No. 2022-02,to set forth the boundaries for CFD No. 2022-02, to indicate the type of services to be financed by CFD No. 2022-02, to indicate the rate and apportionment of special tax sufficient to finance such services and to set a time and place for a public hearing relating to the establishment of CFD No. 2022-02; and WHEREAS, a map of CFD No. 2022-02 (the"Boundary Map") is on file in the Office of the City Clerk showing the boundaries of the territory proposed for inclusion in CFD No. 2022-02 upon the initial establishment of CFD No. 2022-02 including properties and parcels of land proposed to be subject to the levy of the special tax by CFD No. 2022-02. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rancho Cucamonga, California, as follows: Section 1. Recitals. The above recitals are all true and correct. Section 2. Initiation of Proceedings. These proceedings are initiated by this City Council pursuant to the authorization of Section 53318 of the Government Code of the State of California and the other provisions of the Act. Section 3. Boundaries of CFD No. 2022-02. It is the intention of this City Council to establish CFD No. 2022-02 pursuant to the provisions of the Act, and to determine the boundaries Resolution No. 2022-041 - Page 1 of 5 • • and parcels on which the special tax may be levied to finance the Authorized Services (defined in Section 5 below). A description of the boundaries of the territory proposed for inclusion in CFD No. 2022-02 including properties and parcels of land proposed to be subject to the levy of the special tax by CFD No. 2022-02 is as follows: All that property as shown on the Boundary Map designated as "Proposed Boundaries of Community Facilities District No. 2022-02 (Industrial Area Services) of the City of Rancho Cucamonga, County of San Bernardino, State of California"a copy of which is on file in the Office of the City Clerk and shall remain open for public inspection. Said map is approved and, pursuant to Section 3110 of the California Streets and Highways Code, the City Clerk shall, after conforming with the other requirements of Section 3111 of said Code, record the original of said map, and not later than fifteen (15)days prior to the date of the public hearing set forth in Section 7 hereof shall file a copy of said map with the County Recorder of the County of San Bernardino. Section 4. Name of the Community Facilities District. The name of the Community Facilities District proposed to be established shall be known and designated as "Community Facilities District No. 2022-02 (Industrial Area Services) of the City of Rancho Cucamonga, County of San Bernardino, State of California." Section 5. Descriptions of Services and Determination of Necessity. It is the intention of this City Council to finance certain industrial services which are more particularly described is in Exhibit A (the "Authorized Services") attached hereto and incorporated herein by this reference. The City Council finds that the Authorized Services described in this Section 5 hereof are necessary to meet increased demands placed upon the City as a result of new development occurring within the boundaries of the proposed CFD No. 2022-02. Section 6. Special Tax. It is hereby further proposed that, except where funds are otherwise available, a special tax sufficient to finance the Authorized Services (the "Special Tax") and related incidental expenses authorized by the Act, secured by recordation of a continuing lien against all non-exempt real property in CFD No. 2022-02, will be levied annually within the boundaries of such CFD No. 2022-02. For further particulars as to the rates and method of apportionment of the proposed Special Tax, reference is made to the attached and incorporated Exhibit B (the "Rates and Method"), which sets forth in sufficient detail the rate and method of apportionment of the Special Tax to allow each landowner or resident within proposed CFD No. 2022-02 to clearly estimate the maximum amount of Special Tax that such person will have to pay for the Authorized Services. The Special Tax may not be prepaid. The Special Tax herein authorized, to the extent possible, shall be collected in the same manner as ad valorem property taxes or in such other manner as this City Council or its designee shall determine, including direct billing of the affected property owners. Such Special Tax 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 Tax that may not be collected on the County tax roll shall be collected through a direct billing procedure by the City. Resolution No. 2022-041 - Page 2 of 5 • Pursuant to Government Code Section 53340 and except as provided in Government Code Section 53317.3, properties of entities of the state, federal, and local governments shall be exempt from the levy of the Special Tax. Section 7. Public Hearing. NOTICE IS GIVEN THAT ON JUNE 1, 2022 AT 7:00 PM, IN THE REGULAR MEETING PLACE OF THE CITY COUNCIL BEING 10500 CIVIC CENTER DRIVE, RANCHO CUCAMONGA, CALIFORNIA, 91730 OR VIA TELECONFERENCE AS DIRECTED BY THE CITY DUE TO COVID-19 SOCIAL DISTANCING GUIDELINES, A PUBLIC HEARING WILL BE HELD WHERE THIS CITY COUNCIL WILL CONSIDER THE ESTABLISHMENT OF THE PROPOSED CFD NO. 2022-02, THE PROPOSED METHOD AND APPORTIONMENT OF THE SPECIAL TAX, AND ALL OTHER MATTERS AS SET FORTH IN THIS RESOLUTION OF INTENTION. AT THE ABOVE-MENTIONED TIME AND PLACE FOR PUBLIC HEARING ANY INTERESTED PERSONS, INCLUDING TAXPAYERS AND PROPERTY OWNERS MAY APPEAR AND BE HEARD. THE TESTIMONY OF ALL INTERESTED PERSONS FOR OR AGAINST THE ESTABLISHMENT OF THE COMMUNITY FACILITIES DISTRICT, THE EXTENT OF THE COMMUNITY FACILITIES DISTRICT, OR THE FINANCING OF AUTHORIZED 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 ON OR BEFORE THE TIME FIXED FOR THE PUBLIC HEARING. WRITTEN PROTESTS MAY BE WITHDRAWN IN WRITING AT ANY TIME BEFORE THE CONCLUSION OF THE PUBLIC HEARING. IF A WRITTEN MAJORITY PROTEST AGAINST THE ESTABLISHMENT OF CFD NO. 2022-02 IS FILED, THE PROCEEDINGS SHALL BE ABANDONED. IF SUCH MAJORITY PROTEST IS LIMITED TO CERTAIN AUTHORIZED SERVICES, THOSE SERVICES SHALL BE ELIMINATED BY THE CITY COUNCIL. Section 8. Election. If, following the public hearing described in the Section above, the City Council determines to establish CFD No. 2022-02 and proposes to levy the Special Tax within CFD No. 2022-02, the City Council shall then submit the levy of the Special Tax to the qualified electors of CFD No. 2022-02. If at least twelve (12) persons, who need not necessarily be the same 12 persons, have been registered to vote within CFD No. 2022-02 for each of the ninety (90) days preceding the close of the public hearing, the vote shall be by registered voters of CFD No. 2022-02, with each voter having one (1) vote. Otherwise, the vote shall be by the landowners of CFD No. 2022-02 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 CFD No. 2022-02. A successful election relating to the Special Tax authorization shall, as applicable, establish the appropriations limit as authorized by Article XIIIB of the California Constitution as it is applicable to CFD No. 2022-02. Section 9. Notice of Public Hearing. 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. Resolution No. 2022-041 - Page 3 of 5 Section 10. Report. The City Manager, as the officer of the City who will be responsible for providing the Authorized Services to be provided within and financed by CFD No. 2022-02, if established, shall study or cause CFD No. 2022-02 to be studied, and, at or before the time of the public hearing as described in Section 7, file a report or cause a report to be filed with the City Council containing a brief description of the Authorized Services which will in his opinion be required to adequately meet the needs of CFD No. 2022-02, and his or her estimate of the fair and reasonable cost of providing such services, and the incidental expenses to be incurred in connection therewith. Such report shall be made a part of the record of the hearing to be held pursuant to Section 7 hereof. Section 11. Advances of Funds or Work In-Kind. At any time either before or after the formation of CFD No. 2022-02, 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 CFD No. 2022-02. 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. No such agreement shall constitute a debt or liability of the City. Resolution No. 2022-041 - Page 4 of 5 Section 12. Effective Date. This resolution shall become effective upon its adoption. ADOPTED by the City Council of the City of Rancho Cucamonga, California, at a Regular Meeting thereof held this 20th day of April, 2022, by the following roll call vote to wit: PASSED, APPROVED, and ADOPTED this 20th day of April, 2022. i Li nis Michael, ayo C ATTEST: GLM.r-eAd C. '�— ice C. Reynolds, City lerk 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 20th day of . April 2022. AYES: Hutchison, Kennedy, Michael, Scott NOES: None ABSENT: SPAGNOLO ABSTAINED: None Executed this 21 st day of April, 2022, at Rancho Cucamonga, California. a/w/o 0 r- 4421h-- ice C. Reynolds, City Clerk Resolution No. 2022-041 - Page 5 of 5 EXHIBIT A DESCRIPTION OF AUTHORIZED SERVICES The City may finance any services which may be funded with proceeds of the special tax of CFD No. 2022-02, authorized pursuant to Section 53313 of the Act, including but not limited to all costs attributed to maintaining and servicing landscape and tree maintenance, storm drain repair and maintenance, streets and roadway services, police safety calls and service, and creating a capital reserve account for any future industrial repairs and maintenance. 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. A-1 EXHIBIT B RATE AND METHOD OF APPORTIONMENT FOR COMMUNITY FACILITIES DISTRICT NO. 2022-02 (INDUSTRIAL AREA SERVICES) OF THE CITY OF RANCHO CUCAMONGA A Special Tax, as hereinafter defined,shall be levied and collected Community Facilities District No.2022- 02 (Industrial Area Services) of the City of Rancho Cucamonga ("CFD No. 2022-02") 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. 2022-02 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. 2022-02. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2022-02 for any other administrative purposes, including, but not limited to, attorney's fees. • Community Facilities District No.2022-02(Industrial Area Services)of the City of Rancho Cucamonga Page 1 B-1 "Annual Services Costs" means the amounts required to fund services authorized to be funded by CFD No. 2022-02. "Annual Special Tax Requirement" means that amount with respect to CFD No. 2022-02 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. 2022-02,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 in Book at Page_as Document Number "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. 2022-02" means Community Facilities District No. 2022-02 (Industrial Area 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. 2022-02. "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. 2022-02 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.2022-02 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. "Industrial Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued for an industrial use. Community Facilities District No. 2022-02(Industrial Area Services)of the City of Rancho Cucamonga Page 2 B-2 • • "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. "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. "Open Space Property" means property within the boundaries of CFD No. 2022-02 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. 2022-02 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.2022-02 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. 2022-02. "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 a mutually exclusive geographic 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- 02 at the time of its formation is within Tax Zone No. 1.Additional Tax Zones may be created when property is annexed to CFD No. 2022-02, 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 Community Facilities District No.2022-02(Industrial Area Services)of the City of Rancho Cucamonga Page 3 B-3 • included within a new Tax Zone when such Parcels are annexed to CFD No. 2022-02 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.2022-02 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. 2022-02 that are not Developed Property. "Welfare Exempt Property" means, in any Fiscal Year, all Parcels within the boundaries of CFD No. 2022-02 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. 2022-02. 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., Industrial Property, Mixed-Use Property, etc.; and (v) the Annual Special Tax Requirement for the Fiscal Year. C. MAXIMUM ANNUAL SPECIAL TAX RATE The Maximum Special Tax for each Assessor's Parcel of Taxable Property within Tax Zone No. 1 shall be assigned according to the table on the following page. Tax Zone No. 1 Property Land Use 2022/23 Maximum Special Tax Rate Industrial Property $5,852.00 per Acre Mixed Use Property $12,030.00 per Acre Accessory Dwelling Units $731.50 per ADU 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 No. 1 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. 2022-02 as a result of future annexations. Community Facilities District No.2022-02(Industrial Area Services)of the City of Rancho Cucamonga Page 4 B-4 • D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX All Taxable Property shall be subject to a Special Tax defined as follows. The Special Tax shall be levied each Fiscal Year by the CFD Administrator. The Annual Special Tax Requirement shall be apportioned to each Parcel within CFD No. 2022-02 by the method shown below. First: Determine the Annual Special Tax Requirement. Second: Levy the Special Tax on each Parcel of Developed Property and Undeveloped Property, Proportionately, 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 CFD No. 2022-02. 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 Property,Assessor's Parcels with public or utility easements making impractical their utilization for any use other than the purposes set forth in the easement, or Public Property, except as otherwise provided in Sections 53317.3, 53317.5, and 53340.1 of the Act. Welfare Exempt Property shall be exempt from the Special Tax in each Fiscal Year the property qualifies as Welfare Exempt Property. F. 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 Tax that is disputed,and the appellant must be current in all payments of the Special Tax. In addition, during the term of the appeal process, all Special Tax 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 Tax is 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 Tax to be modified or changed in favor of the property owner,the CFD Administrator shall determine if sufficient.Special Tax revenue is available to make Community Facilities District No.2022-02(Industrial Area Services)of the City of Rancho Cucamonga Page 5 B-5 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 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 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. 2022-02,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. I. PREPAYMENT OF SPECIAL TAX The Special Tax may not be prepaid. Community Facilities District No.2022-02(Industrial Area Services)of the City of Rancho Cucamonga Page 6 B-6