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HomeMy WebLinkAbout943 - OrdinanceORDINANCE NO. 943 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF THE RESORT AT EMPIRE LAKES COMMUNITY FACILITIES DISTRICT NO. 2018-01 OF THE CITY OF RANCHO CUCAMONGA, AUTHORIZING THE LEVY OF A SPECIAL TAX IN SUCH COMMUNITY FACILITIES DISTRICT A. Recital WHEREAS, the City Council of the City of Rancho Cucamonga, California (the "City Council'), has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors authorizing the levy of special taxes in a community facilities district, all as authorized 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"). This community facilities district 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"). B. Ordinance NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF THE RESORT AT EMPIRE LAKES COMMUNITY FACILITIES DISTRICT NO. 2018-01 OF THE CITY OF RANCHO CUCAMONGA, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. This City Council does, by the passage of this ordinance, authorize the levy of special taxes on taxable properties located in the District pursuant to the Rate and Method of Apportionment as set forth in Exhibit "A" attached hereto and incorporated herein by this reference (the "Rate and Method"). SECTION 2. This City Council, acting in its capacity as the legislative body of the District, is hereby further authorized, by resolution, to annually determine the special tax to be levied within the District for the then current tax year or future tax years; provided, however, the special tax to be levied shall not exceed the maximum special tax authorized to be levied pursuant to the Rate and Method. SECTION 3. The special taxes herein authorized to be levied, 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 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 of Rancho Cucamonga, acting for and on behalf of the District. SECTION 4. The special taxes authorized to be levied shall be secured by the lien imposed pursuant to Sections 3114.5 and 3115.5 of the Streets and Highways Code of the State of California, which lien shall be a continuing lien to secure each levy of the special tax, shall attach to all non-exempt real property in the District and shall continue in force and effect until the lien is canceled in accordance with law or until collection of the tax by the legislative body ceases. SECTION 5. This Ordinance shall be effective thirty (30) days after its adoption. Within fifteen (15) days after its adoption, the City Clerk shall cause this Ordinance to be published in a newspaper of general circulation in the City of Rancho Cucamonga. Ordinance No. 943 - Page 1 of 9 PASSED, APPROVED, AND ADOPTED this 16"' day of January, 2019. ATTEST: ! B. Kenned , ayor Pro m STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss CITY OF RANCHO CUCAMONGA ) I, JANICE C. REYNOLDS, City Clerk of the City of Rancho Cucamonga, California, do hereby certify that the foregoing Ordinance was introduced at a Regular Meeting of the City Council of the City of Rancho Cucamonga held on the 19'h day of December 2018, and was passed at a Regular Meeting of the City Council of the City of Rancho Cucamonga held on the 16'h day of January 2019. AYES: Hutchison, Scott and Spagnolo NOES: None ABSENT: Michael ABSTAINED: None Executed this 17t'day of January 2019, at Rancho Cucamonga, California. Reynolds, Clerk Ordinance No. 943 - Page 2 of 9 EXHIBIT A 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 Community Facilities District 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 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 Parcel information contained in the records of the Assessor of the County. "Assessor's Parcel" means a lot or parcel shown on an Assessor's Parcel Map with an assigned Assessor's Parcel number. Ordinance No. 943 - Page 3 of 9 "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 1 st 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 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. Ordinance No. 943 - Page 4 of 9 "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 Taxable Property to fund the Special Tax Requirement. Ordinance No. 943 - Page 5 of 9 "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 2 EBUs per Parcel 1 Acre 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 Assigned Special Tax that would be applicable Mixed Use Property 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. Ordinance No. 943 - Page 6 of 9 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. Ordinance No. 943 - Page 7 of 9 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 2018-01; or (iii) grant a credit against, eliminate or reduce the future Special Taxes levied on the property owner's property within CFD 2018-01 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. I. PREPAYMENT OF SPECIAL TAX The Special Tax may not be prepaid. Ordinance No. 943 - Page 8 of 9 J. TERM OF SPECIAL TAX The Special Tax shall be levied, commencing in Fiscal Year 2019/20, as needed to fund the Special Tax Requirement, in perpetuity. Ordinance No. 943 - Page 9 of 9