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HomeMy WebLinkAbout2022-062 - Resolution RESOLUTION NO. 2022-062 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, FORMING AND ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 2022-02 (INDUSTRIAL AREA SERVICES) OF THE CITY OF RANCHO CUCAMONGA, AND AUTHORIZING SUBMITTAL OF THE LEVY OF A SPECIAL TAX TO THE QUALIFIED ELECTOR WHEREAS, the City Council (the "City Council")of the City of Rancho Cucamonga (the "City"), has, by the adoption of Resolution No. 2022-041 (the "Resolution of Intention"), previously declared its intention to form 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 maintenance services necessary to serve new development within such community facilities district; and WHEREAS, this community facilities district has been designated as Community Facilities District No. 2022-02 (Industrial Area Services)of the City of Rancho Cucamonga ("CFD No. 2022-02"); and WHEREAS, notice of a public hearing relating to the establishment of CFD No. 2022-02, the extent of CFD No. 2022-02, the financing of certain types of services by CFD No. 2022-02 and all other related matters has been given, and a Community Facilities District Report, as ordered by this City Council, has been presented to this City Council and has been made a part of the record of the hearing to establish CFD No. 2022- 02; and WHEREAS, all communication relating to the establishment of CFD No. 2022-02, the financing of certain types of services and the proposed rate and method of apportionment of special tax have been presented, and it has further been determined that a majority protest as defined by law has not been received against these proceedings; and WHEREAS, the Registrar of Voters of the County of San Bernardino has certified that there are no registered voters residing within the proposed boundaries of CFD No. 2022-02; and WHEREAS, inasmuch as there are no registered voters within the proposed boundaries of CFD No. 2022-02, the authorization to levy special taxes within CFD No. 2022-02 shall be submitted to the landowner of CFD No. 2022-02, such landowner being the qualified elector as authorized by law. Resolution No. 2022-062 - Page 1 of 7 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. Determinations. It is hereby determined by the City Council that: A. All prior proceedings pertaining to the formation of CFD No. 2022-02 were valid and taken in conformity with the requirements of the law, and specifically the provisions of the Act, and this finding and determination is made pursuant to the provisions of Government Code Section 53325.1. B. The written protests received, if any, do not represent a majority protest as defined by the applicable provisions of the Act and, therefore, the special tax proposed to be levied within CFD No. 2022-02 has not been precluded by a majority protest pursuant to Section 53324 of the Government Code of the State of California. C. CFD No. 2022-02 as proposed conforms with the City's statement of goals and policies regarding the establishment of community facilities districts (the "Goals and Policies"). D. The formation of CFD No. 2022-02 and such authorization to levy the special tax within CFD No. 2022-02 to finance the services identified below constitutes the creation of a government funding mechanism which does not involve the commitment to any specific project which may result in a potentially significant impact on the environment. Therefore, the formation of CFD No. 2022-02 and the authorization to levy the special tax within CFD No. 2022-02 do not constitute a "project" which is subject to the provisions of the California Environmental Quality Act (California Public Resources Code Section 21000 and following). E. No registered voters have resided within the territory of CFD No. 2022-02 for each of the ninety (90) days preceding the close of the public hearing, therefore, pursuant to the Act the qualified elector of CFD No. 2022-02 shall be the landowner of CFD No. 2022-02 as such term is defined in Government Code Section 53317(f) and such landowner who is the owner of record as of the close of the public hearing pertaining to the formation of CFD No. 2022-02, or the authorized representative thereof, shall have one vote for each acre or portion of an acre of land that such landowner owns within CFD No. 2022-02. F. The time limit specified by the Act for conducting an election to submit the levy of the special tax to the qualified elector of CFD No. 2022-02 and the requirements for impartial analysis and ballot arguments have been waived with the consent of the qualified elector of CFD No. 2022-02. Resolution No. 2022-062 - Page 2 of 7 • G. The City Clerk, acting as the election official, has consented to conducting any required election on a date which is less than 125 days following the adoption of the resolution forming and establishing CFD No. 2022-02. Section 3. Community Facilities District Report. The Community Facilities District Report, as prepared pursuant to the Act and the Resolution of Intention and now submitted and received by this City Council, shall stand as the Community Facilities District Report for all future proceedings and all terms and contents are approved as set forth therein. Section 4. Name of the Community Facilities District. This legislative body does hereby establish and declare the formation of CFD No. 2022-02 to 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. Boundaries of CFD No. 2022-02. The boundaries of CFD No. 2022-02 thereto are generally described is as follows: All that property as shown on the Boundary Map as previously approved by this City Council, such map designated as "Proposed Boundaries of Community Facilities District No. 2022-02 (Industrial Area Services) of the City of Rancho Cucamonga" (the "Boundary Map"). The Boundary Map has been filed pursuant to Sections 3111 and 3113 of the Streets and Highways Code of the State of California in the Office of the San Bernardino County Recorder, in Book 90, Page 21 of Maps of Assessment and Community Facilities Districts and as Document No. 2022-0167398. Section 6. Description of Services. The municipal maintenance services authorized to be financed by CFD No. 2022-02 are not replacing services already available within the boundaries of CFD No. 2022-02. A general description of such services (collectively, the "Authorized Services"), whether provided directly by the City or by a third party contracting with the City or CFD No. 2022-02, that may be financed is set forth in Exhibit A attached hereto and incorporated herein by this reference. The City Council finds that the Authorized Services described in this Section 6 hereof are necessary to meet increased demands placed upon the City as a result of new development occurring within the boundaries of CFD No. 2022-02. Section 7. Special Tax. 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 Resolution No. 2022-062 - Page 3 of 7 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. 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. Upon recordation of a Notice of Special Tax Lien pursuant to Section 3114.5 of the Streets and Highways Code of the State of California, a continuing lien to secure each levy of the Special Tax shall attach to all non-exempt real property in CFD No. 2022-02 and this lien shall continue in force and effect until collection of the special tax by the legislative body ceases. Section 8. Special Tax Accountability Measures. Pursuant to and in compliance with the provisions of Government Code Section 50075.1, this City Council hereby establishes the following accountability measures pertaining to the levy by CFD No. 2022-02 of the Special Tax described in Section 7 above: A. The Special Tax shall be levied for the specific purposes set forth in Section 7 above. B. The proceeds of the levy of the Special Tax shall be applied only to the specific applicable purposes set forth in Section 7 above. C. CFD No. 2022-02 shall establish a separate account into which the proceeds of the Special Tax shall be deposited. D. The Finance Director of the City, or his or her designee, acting for and on behalf of CFD No. 2022-02, shall annually file a report with the City as required pursuant to Government Code Section 50075.3. Section 9. Preparation of Annual Tax Roll. The name, address and telephone number of the office, department, or bureau which will be responsible for preparing annually a current roll of Special Tax levy obligations by Assessor's parcel number and which shall be responsible for estimating future Special Tax levies pursuant to Section 53340.2 of the Government Code of the State of California, are as follows: Resolution No. 2022-062 - Page 4 of 7 • • City of Rancho Cucamonga Finance Department 10500 Civic Center Drive Rancho Cucamonga, CA 91730 909-774-2402 Section 10. Election. This legislative body herewith submits the levy of the special taxes to the qualified elector of CFD No. 2022-02, such elector being the landowner of the property within CFD No. 2022-02, with such landowner having one (1) vote for each acre or portion thereof of land which he or she owns within the District. This legislative body hereby further directs that the ballot proposition relating to the levy of the above referenced special taxes within CFD No. 2022-02 be combined and consolidated with the proposition set forth in Section 11 below relating to the establishment of an appropriations limit for CFD No. 2022-02. The proposition related to the levy of the special taxes, together with a proposition to establish an appropriations limit for CFD No. 2022-02, shall be submitted to the qualified elector of CFD No. 2022-02 at a special election to be held on (a) June 1, 2022, immediately following the adoption of this resolution or(b) such other date as the qualified elector and the City Clerk may mutually agree and such election shall be a special election to be conducted by the City Clerk(hereinafter referred to as the "Election Official"). If the proposition for the levy of the special taxes receives the approval of more than two-thirds (2/3rds) of the votes cast on the proposition, the special tax thereby approved may be levied as provided for in this Resolution. Section 11. Ballot Propositions. The ballot proposals to be submitted to the qualified elector of CFD No. 2022-02 at the election shall generally be as follows: PROPOSITION A Shall Community Facilities District No. 2022-02 (Industrial Area Services) of the City of Rancho Cucamonga, County of San Bernardino, State of California, subject to accountability measures set forth in California Government Code Section 50075.1, levy special taxes throughout such community facilities district pursuant to the method of apportioning the special tax set forth in Attachment A to this Official Ballot for the purpose of financing municipal maintenance services, including but not limited to the services set forth in Attachment B to this Official Ballot to meet the increased demand for such services resulting from new development within CFD No. 2022-02 and the cost of administering the levy and collection of the special taxes and CFD No. 2022-02? PROPOSITION B Shall an appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, be established for Community Facilities District No. 2022-02 (Industrial Area Services) of the City of Resolution No. 2022-062 - Page 5 of 7 Rancho Cucamonga, County of San Bernardino, State of California in the amount of$3,000,000? Section 12. Vote. The appropriate mark placed in the voting square before the word "YES" shall be counted in favor of the adoption of the proposition, and the appropriate mark placed in the voting square before the word "NO" in the manner as authorized, shall be counted against the adoption of such proposition. Section 13. Election Procedure. The Election Official is hereby authorized to take any and all steps necessary for holding the above election. The Election Official shall perform and render all services and proceedings incidental to and connected with the conduct of the election, including but not limited to, the following: 1. Prepare and furnish the necessary election supplies for the conduct of the election. 2. Cause to be printed the requisite number of official ballots, tally sheets and other necessary forms. 3. Furnish official ballots for the qualified elector of CFD No. 2022-02. 4. Cause the official ballots to be presented to the qualified elector, as required by law. 5. Receive the returns of the election and supplies. 6. Sort and assemble the election material and supplies in preparation for the canvassing of the returns. 7. Canvass the return of the election. 8. Furnish a tabulation of the number of votes given in the election. 9. Conduct and handle all other matters relating to the proceedings and conduct of the election in the manner and form as required by law. [Remainder of this page intentionally left blank.] Resolution No. 2022-062 - Page 6 of 7 • Section 14. Effective Date. This resolution shall become effective upon its adoption. PASSED, APPROVED, and ADOPTED this 1st day of June 2022. L. Dennis Michael, Mayor ATTEST: 'A' l� ice C. Reynolds, C y 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 1st day of June 2022. AYES: Hutchison, Kennedy, Michael and Scott NOES: None ABSENT: None ABSTAINED: None Executed this 2nd day of June, 2022, at Rancho Cucamonga, California. -ef ice C. Reynolds, City Jerk Resolution No. 2022-062 - Page 7 of 7 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 B-1 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. "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 May 4, 2022 in Book 90 at Page 21 as Document Number 2022-0167398. "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. B-2 "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. "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 B-3 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 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 Article I.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 B-4 • 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. 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. B-5 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 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 B-6 • 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. B-7