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HomeMy WebLinkAbout18-136 - Resolution RESOLUTION NO. 18-136 RESOLUTION OF 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, ESTABLISHING SUCH COMMUNITY FACILITIES DISTRICT, AND AUTHORIZING SUBMITTAL OF THE LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS OF SUCH COMMUNITY FACILITIES DISTRICT WHEREAS, the City Council of the City of Rancho Cucamonga (the "City Council'), has previously declared its intention to form a community facilities district and ordered the preparation of a report relating to the initiation of proceedings to create such 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"). 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"); and, WHEREAS, notice of a public hearing relating to the establishment of the District, the extent of the District, the financing of certain types of services and all other related matters has been given, and a report (the "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 the District; and, WHEREAS, all communications relating to the establishment of the District, the proposed services and the rate and method of apportionment of the special tax proposed to be levied within the District have been presented, and it has further been determined that a majority protest as defined by law has not been received against these proceedings or the levy of the special tax within the District; and WHEREAS, inasmuch as there have been fewer than twelve (12) registered voters residing within the territory of the District for at least the preceding ninety (90) days, the authorization to levy special taxes within the District shall be submitted to the landowners of the District, such landowners being the qualified electors as authorized by law. 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. Determinations. It is hereby determined by this City Council that: A. All prior proceedings pertaining to the formation of the District were valid and taken in conformity with the requirements of the law, and specifically the provisions of the Act, and that 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 the District has not been precluded by majority protest pursuant to Section 53324 of the Government Code of the State of California. C. The District as proposed conforms with the City of Rancho Cucamonga Statement of Goals and Policies for the Use of Mello-Roos Community Facilities Act of 1982 (the "Goals and Policies"), as amended. Resolution No. 18-136 - Page 1 of 12 D. Fewer than twelve (12) registered voters have resided within the territory of the District for each of the ninety (90) days preceding the close of the public hearing, therefore, pursuant to the Act the qualified electors of the District shall be the landowners of the District as such term is defined in Government Code Section 53317(f) and each such landowner who is the owner of record as of the close of the public hearing, or the authorized representative thereof, shall have one vote for each acre or portion of an acre of land that she or he owns within the District. E. The time limit specified by the Act for conducting an election to submit the levy of the special taxes to the qualified electors of the District and the requirements for impartial analysis and ballot arguments have been waived with the unanimous consent of the qualified electors of the District. F. 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 any resolution forming and establishing the District. 3. The District Report. The District Report, as now submitted by NBS, Special Tax Consultant, shall stand as the report required pursuant to Government Code Section 53321.5 for all future proceedings and all terms and contents are approved as set forth therein. 4. Name of District. The City Council does hereby establish and declare the formation of the District known and designated as "The Resort at Empire Lakes Community Facilities District No. 2018-01 of the City of Rancho Cucamonga." 5. Boundaries of the District. The boundaries of the District are described generally as follows: All property within the boundaries of The Resort at Empire Lakes Community Facilities District No. 2018- 01 of the City of Rancho Cucamonga as shown on a boundary map as previously approved by the legislative body, such map designated "Boundaries of The Resort at Empire Lakes Community Facilities District No. 2018-01 of the City of Rancho Cucamonga," a copy of which is on file in the Office of the City Clerk. The boundary map of the District 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 County Recorder of the County of San Bernardino, at page 6 of Book 88 of the Book of Maps of Assessment and Community Facilities Districts for the County of San Bernardino (the "County"). 6. Description of Public Services. It is the 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. 7. Special Tax. 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, are hereby authorized, subject to voter approval, to be levied annually within the boundaries of the District. For further particulars as to the rate and method of apportionment of the 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 Rate and Method of Apportionment to allow each landowner or resident within the District to clearly estimate the maximum amount that such person will have to pay for such services. The special taxes 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 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 Resolution No. 18-136 - Page 2 of 12 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. 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 the District and this lien 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. The special tax obligation for any parcel may not be prepaid. 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 the District of the special taxes described in Section 7 above: A. Each such special tax shall be levied for the specific purposes set forth in Section 7. above. B. The proceeds of the levy of each such special tax shall be applied only to the specific applicable purposes set forth in Section 7. above. C. The District shall establish a separate account into which the proceeds of each such special tax shall be deposited. D. The City Manager or his or her designee, acting for and on behalf of the District, shall annually file a report with the City Council as required pursuant to Government Code Section 50075.3. 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 53340.1 of the Government Code of the State of California, are as follows: City Clerk or duly appointed representative City of Rancho Cucamonga 10500 Civic Center Drive Rancho Cucamonga, California 91730 (909) 774-1274 10. Election. This legislative body herewith submits the levy of the special taxes to the qualified electors of the District, such electors being the landowners within the District, with each 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 a separate ballot proposition relating to the levy of the above referenced special taxes within the District be combined and consolidated with the proposition set forth in Section 11 below relating to the establishment of an appropriations limit for the District. The proposition related to the levy of the special taxes, together with a proposition to establish an appropriations limit for the District, shall be submitted to the qualified electors of the District at a special election to be held on (a) December 19, 2018, immediately following the adoption of this resolution or (b) such other date as the qualified electors 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 either or both of the propositions for the levy of the special taxes receive 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. Resolution No. 18-136 - Page 3 of 12 11. Ballot Proposals. The ballot proposals to be submitted to the qualified electors of the District at the election shall generally be as follows: PROPOSITION A Shall Proposition A authorizing the levy of a special tax throughout The Resort at Empire Lakes Community Facilities District No. 2018-01 of the City of Rancho Cucamonga, subject to the accountability measures required pursuant to Government Code Section 50075.1 pursuant to the Rate and Method of Apportionment attached as Exhibit A to this ballot for the purposes of financing the services described in Exhibit B to this ballot be approved? PROPOSITION B Shall Proposition B establishing an Article XIIIB appropriations limit equal to $2,000,000 for The Resort at Empire Lakes Community Facilities District No. 2018-01 of the City of Rancho Cucamonga be approved? 12. Vote. The appropriate mark placed in the voting square after the word "YES" shall be counted in favor of the adoption of the proposition, and the appropriate mark placed in the voting square after the word "NO" in the manner as authorized, shall be counted against the adoption of such proposition. 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 electors of the District. 4. Cause the official ballots to be presented to the qualified electors, 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 returns 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. 10. Effective Date. This Resolution shall become effective immediately upon its adoption. Resolution No. 18-136 - Page 4 of 12 EXHIBIT "B" 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. Resolution No. 18-136 - Page 7 of 12 "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 of this Rate and Method of Apportionment. Resolution No. 18-136 - Page 8 of 12 PASSED, APPROVED, AND ADOPTED this 19th day of December 2018. L. Denft' ichae , May6r ATTEST: ea QED 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 191h day of December 2018. AYES: Hutchison, Kennedy, Michael, Scott and Spagnolo NOES: None ABSENT: None ABSTAINED: None Executed this 20th day of December, 2018, at Rancho Cucamonga, California. nice C. Reynolds, Clerk Resolution No. 18-136 - Page 5 of 12 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 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. Resolution No. 18-136 - Page 6 of 12 "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 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) Resolution No. 18-136 - Page 9 of 12 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 Assigned Special Tax that would be applicable to Mixed Use Property 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. 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 Resolution No. 18-136 - Page 10 of 12 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. 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. Resolution No. 18-136 - Page 11 of 12 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, 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. 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. Resolution No. 18-136 - Page 12 of 12