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HomeMy WebLinkAboutReso 2016-051 RESOLUTION NO. 2016-0�1 RESOLUTION OF THE CITY COUI�'CIL OF THE CITY OF CI�iJLA VISTA ACTING II`' ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUI�'ITY FACILITIES DISTRICT NO. 17-I (R'ESTERI�' CHiJLA VISTA DIF FI?�'Ai\TCII�TG PROGRAM), AUTHORIZII�'G THE �N?�'EXATION OF TERRITORY II�' THE FUTURE TO SUCH COMMUI�TITY FACILITIES DISTWCT WHEREAS, the Cin� Council (the "Citv Council') of the Cin� of Chula Vista (the "Cih�") has dedazed its inrention; conducted proceedings and held a public hearine relating to the authorization to annes territon� in the future to Communitv Facilities District No. 17-1 (R'estem Chula ��ista DIF Financine Proeram) of the Citv of Chula Vista (the "Districr`) pursuant to the terms and pro��isionsyof the `Mello-Roos Community Facilities Act of 1982;" beine Chapter 2.�, Part 1; Division 2. Title � of the Government Code of the State of Califomia (the "Acr`); and specificalh� Article 3S thereof and the Cit�� of Chula Vista Communit}� Facilities District Ordinance enacted pwsuant to the po���ers resen�ed b}� the Cip- of Chula Vista under Sections 3, � and 7 of.Article XI of the Constimtion of the State of California (the "Ordinance") (the Act and the Ordinance may be referred to collectivel�� as the "Communin� Facilities District LaN�'); and R'HEREAS; notice of such pubiic hearing �vas given in the form and manner as required bv the Communitv Facilities District Law: and �b%HEREAS. all communications relatine to the authorization to annex territon� in the future w�ere presented at such public hearina_ and it has been determined that a majorit}� protest as defined bv Govemment Code Section �3339.6 has not been received aaainst the authorization to annex temtorv in the future to the District: and � WHEREAS. it has no�v been determined to be within the public interest and con�=enience to establish a procedure to allo��- and pro��ide for future annesations to the District and further to specifi� the amount of special ta�es that would be authorized to be levied on any parcels that mav be annexed to the District in the furure, as �vell as settina forth the terms and conditions for certification for am�annexation in the future: and \4'HERE.AS. the territon� proposed to be authorized to be anne�ed in the fumre shall be kno��m and designated as Furure Anne�ation Area Communit�� Facilities District No. 17-I (the " Future Anneaation Area `). and a map designated as " Future Annexation Area Communiri� Facilities District 1Vo. 17-I (R'estem Chula Vista DIF Financine Proeram), Citv of Chula Vista Count�� of San Dieeo, State of Califomia' sho���ins the temtory proposed to be anneaed in the future has been appro��ed and a cop}� thereof shall be kept on file ��ith the transcript of these proceedines. Resolution No. 2016-051 Page No. 2 NOW. THERLFORE, T]-IE CITY COUNCIL OF THE CITY OF CHULA VISTA. CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMiJNITY FACILITIES , DISTRICT NO. 17-1 (WESTERN CHULA VISTA DTF FINANCING PROGRAM), DOES HEREBY RESOLVE, DECLARE, FIND, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. Recitals. The above recitals are all true and correct. SECTION 2. Determinations. It is hereby determined by this City Council as follows: A. All prior proceedings pertaining to authorization for the annexation of the Future Annexation Area to the District in the future 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 against the authorization for the annexation of the Future Annexation Area to the District in the future received do not represent a majority protest as defined by Govemment Code Sectio� 53339.6 and, therefore, the authorization for the annexation of the Future Annexation Area to the District in the future has not been precluded by majority protest pursuant to Govemment Code Section 53339.6. C. The public convenience and necessity require a procedure to authorize and provide for territory to be a�nexed in the future to the District in order to finance the costs and expenses necessary to provide the public services described below made necessary by the development or redevelopment of such temtory. D. The authorization for the annexation of territory within the Future Annexation Area to the District in the future as proposed conforms with the City of Chula Vistas statement of goals and policies regarding the establishment of community facilities districts. E. The provision for the annexation of temtory within the Future Annexation Area to the District in the future and the authorization to levy special taxes of territory within tbe Future Annexation Area upon the annexation thereof to the District to finance the public services described below constiTUtes the creation of a govemment funding mechanism which does not involve the commitment to any specific project which may result in a potentially significant physical impact on the environment. Therefore, the provision for the annexation of territory within the Future Annexation Area to the District in the future and the autborization to levy special taxes within such territory upon the annexation thereof to the District does not constitute a "project ' which is subject to the provisions of the California Environmental Quality Act (California Public Resources Code Section 21000 and following). SECTION 3. Anneaation Authoritv. This legislative body does hereby authorize the annexation of territorv within the Future Annexation Area to the District in the future pursuant to the provisions and authorization of Artide 3.5 of the Act. SECTION 4. Description of the Future Anne�ation Area. A description of the Future Annexation Area is as follows: Resolution ��o. 2016-0�1 Pa¢e No. 3 .All that propert�� and territory proposed to be anneaed in the future to the District, as said property is sho���n on a map as pre�iousl�� approved bv this leeislati��e body. said map desienated as "Futwe Annexation Area Communitv Facilities District. CFD No. 17-I. Citv of Chula Vista, Count�� of San Dieeo. State of California` (the "Future Annexation Area Map�), a cop}� of ��hich is on file in the Office of the Cit}� Clerk and shall remain open for public inspection. The Future Anneaation Area Map has been filed in the Office of the San Dieeo Counn- Recorder, in Book 4�, Paee 33 of Maps of Assessment and Community Facilities Districu and as Document I�'o. 2016-700007�. Future annexation proceedings ma�� only be completed «�ith the unanimous consent of the o��ner or ow�ners of an}�parcel proposed for annexation. SECTIOI�' �. Description of the Develooment Impact Fee Oblieations Authorized To Be Financed. The District shall finance the development impact fee oblieations described belo��� that are imposed by the Cih� in connection with the appro��al of a de��elopment project to be developed on propert�� within the Fumre Annexation Area that annexes to the District in the future. Such fees mav include: (i) the Public Facilities Development Impact Fee pursuant to Chula Vista Municipal Code (`CVA4C") section 3.�0, et seq. (`PFDIF"); (ii) the �1'estem Transportation De��elopment Impact Fee pursuant to CVMC section 3.», et seq. (`WTDIF"); and (iii) the Parkland Acquisition and Development Fee pursuant to CVMC section 17.10, et seq. (`PAD" and toeether Hith the PFDIF and ��%TDIF, the "DIFs-` and the obligation to pa}� the DIFs, the "DIF Obligation '). The proceeds of the pa��ment of the DIF Oblisations ���ill pay for facilities ���hich this Citv Council is authorized bv la�i� to contribute re��enue to or to construct, o��n. or operate (the "DIF Facilities `). It is hereby further determined that the DIF Facilities are necessarv to meet inereased demands and needs placed upon the Cin� as a result of development ���ithin the District or anv temtorv anneaed to the District in the future. The cost of the pa}�nent of DIF Obligations includes cenain [ncidental Ezpenses as such term is defined in Govemment Code Section �3317(e) and ma�� include, but not be limited to, all costs associated ��rith the establishment of the Districr the costs of collectina anv special ta�es; and costs otherwise incurred in order to cam� out the authorized purposes of the District. SECTION 6. Saecial Ta�es. It is the intention of this le_islative bod�� that; eacept N�here funds aze otherN°ise a��ailable, a special tax sufficient to finance the D[F Oblioations (the "Special Tax") imposed on the territon� of the Furure Annexation Area upon the annexation of such temtorv to the District and related incidental ezpenses authorized by the Act, secured by recordation of a continuine lien against all non-exempt real property in the temtor�� ���ithin the Future .Annexation .Area that annexes to the District. will be le��ied annuallv ���ithin the boundaries of such temtorv upon the anne�ation thereof to the District. For funher particulars as to the rates and method of apponionment of the proposed Special Tae, reference is made to the attached and incorporated Exhibit A (the "Rates and Method"), ���hich sets forth in sufficient detail the rate and method of apportionment of the Special Ta� to allo��� each lando���ner or resident ���ithin the territon� in the Future Annexation Area to clearl�� estimate the maximum amount of the Special Ta� that such person �riil ha��e to pa�� upon the anne�ation of such territor��to the District. Resolution No. 2016-051 Page No. 4 Notwithstanding the foregoing, if the actual cost of the DIF Obligations unposed on any territor}� within the Future Annexation Area is higher or lower than the DIF Obligations imposed on properties within the existing the District a higher or lower special ta�; may be levied w�ithin such territory subject to the unanimous approval and election of the owmer or owmers of such territory. In any such circumstance, the Rate and Method of Apportionment may be revised to reflect the higher or lower special ta�c, as applicable. The proposed Special Tax; to the eatent possible, shall be collected in the same manner as ad valorem property ta�ces or in such other manner as this City Council or its designee sball determine, including direct billing of the affected property owners. Such Special Taa 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 Counry taac roll shall be collected through a direct billing procedure by the City. The special taY obligation for any territory within the Future Annexation Area that annexes to the District may be prepaid and permanently satisfied in whole or in part pursuant to the provisions therefor contained in the Rate and Method of Apportionment. Pursuant to Govemment Code Section 53340 and except as provided in Govemment Code Section 53317.3, properties of entities of the state, federal, and local governments shall be eaempt 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 Califomia against any temtory within the Future Annexation Area that annexes to the District, a continuing lien to secure each levy of the special tax shall attach to all non-exempt real property within such territory and this lien shall continue in force and effect until the special t� obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the tax by the Ciry Council ceases. SECTION 7. �ecial Tax Accountability Measures. Pursuant to and in compliance N�ith the provisions of Govemment Code Section 50075.1, this City Council hereby establishes the following accountability measures pertaining to the levy by the District of the special tvices described in Section 6 above. A. The Special Tax shall be levied for the specific purposes set fortb in Section 6 above. B. The proceeds of the levy of the Special Ta�c shall be applied only to the specific applicable purposes set forth in Section 6 above. C. The District shall establish a separate account into which the proceeds of the Special Tax shall be deposited. D. The Director of 'Finance/Treasurer of the City of Chula Vista, or his or her designee_ acting for and on behalf of the District, shall annually file a report with the City Council as required pursuan[ to Govemment Code Section 50075.3 Resolution No. 2016-0�1 Paee No. � Section 8 Annual Reportine. In an�� one that the number of units anne�ed into the District exceeds 200. staff Hill schedule a Ciri� Council Action Item to address the effects of the District on public facilities and pazl:s_ and to assess tt�e need for the District to continue. Section 9. Anne�ation Effective Date. Annesation of an�� parcel in the Future Annexation .Area to the Disvict in the future shall be effective onh� upon the unanimous appro��al and election of the o�vner or o�a�ners of anv such parcel authorizing the levv of the Special Ta� upon such pazcel follo��ine the annexation of such parcel to District, and no funher public hearings or additional proceedings N�ill be required to accomplish such annexation. SECTION ]0. Sun�i��al. If an�� section. subsection. subdivision. sentence. clause. or phrase in this Resolution or an} part thereof is for an�� reason held to be unconstimtional or in��alid. ineffective b� an�� coun of competent jurisdiction, such decision shall not affect the ��alidim or effecti��eness of the remaining portions of this Resolution or an�� part thereof. The Cit�� Council hereb� declares that it �vould have adopted each section irrespecti��e of the fact that am one or more subsections, subdivisions, sentences. clauses. or phrases be declared unconstitutional. im alid. or ineffecti�e. SECTIOI�' 11 Effective Date of Resolution. This Resolution shall become effecti��e immediatel}�upon its adoption. Presented b}� Approved as to form b�� � ` � G.�.'� Eric C. Crockett G e�n R' �.�Go e'ins Director of Economic De��elopment Cit}'�Ltqme�� Resolution No. 2016-051 Page No. 6 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 15th day of March 2016 by the following vote: AYES: Councilmembers: Aguilar, Bensoussan, and McCann NAYS: Councilmembers: None ABSENT: Councilmembers: None ABSTAIN: Councilmembers: Miesen and Salas I�CGd�X.eCL//.��� Mary , las, Mayor ATTEST: � Donna R. Norris, MC; Ci y Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Donna R. Norris, Cit}� Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2016-051 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 15th day of March 2016. Executed this 15th da�� of March 2016. L��LW�' �,� ��Vtl,��,�J° Donna R. Norris, CMC, City Clerk Resolution No. 2016-0�1 Pa�e I�o. 7 EXHIBIT "A" Rate and liethod of Apportionment of Special Tax Community Facilities District Na 1 i-I («'estcrn Chula �'ista DIF Financin�) A Special Ta� shall be le��ied on each Assessors Pazcel of Taxable Property N�ithin the boundaries of Community Facilities District No. 17-I (Westem Chula Vista DIF Financine) of the Citv of Chula Vista (the "Cit��') and collected each Fiscal 1'ear commencine in Special Ta� Commencement FY applicable to such Assessors Parcel, in an amount determined b�� the CFD Administrator through the application of the procedures described beloH�. All of the real property within CFD I�'o. 17-I, unless exempted b}� la�v or b}� the provisions hereof; shall be taked for the purposes, to the estent. and in the manner herein pro�ided. 1. DEFINITIONS The terms hereinafrer set forth have the follo�+�ino meaninas: "Accrued Interest Obligatiod' means for each Assessor's Parcel. the amount of interest accrued on the Deferred DIF Oblieation from the date of the issuance or erant of a Certificate of Occupanc}� for such propert}� as determined in accordance with Section 3.D below. "Acre" or "Acreage" means the land area of an Assessors Parcel as sho�ir on an Assessor's Pazcel Map, or if the land area is not sho«n on an Assessor's Parcel Map, the land area sho���n on the applicable Final Map. An Acre means 43;�60 square feet of land. "AcP' means the A4ello-Roos Communin� Facilities Act of 1982. as amended. beine Chapter 2.� of Pan I of Di��ision 2 of Title � of the Government Code oFthe State of Califomia. � "Anuual Special Taz" means the Special Tak actuallv le�ied in an� Fiscal Year on am� Assessors Pazcel which is equal to the sum of the Annual Special 7�a� for Facilities and the Annual Special Ta� for Accrued Interest in accordance ���ith Section 3.E belo���. "Aooual Special Tax for Facilities" means the amount of the Special Ta� le��ied on an Assessor's Parcel of Developed Propem- in am Fiscal Year. commencino ��ith the Special Ta� Commencement FY. to satisfi� the repayment of the Deferred DIF Oblieation o��er the term of the Special Tax as set forth in Section 7 determined in accordance «�ith Section 3.E belo��= unless the Special Ta� Obligation is prepaid pursuant to the pro��isions of Section 6 thereto. "Annual Special Ta� for Accrued Interest" means the amoun[ le��ied on an Assessors Parcel of Developed Propem� in am� Fiscal Year, commencin� ��ith the Special Tas Commencement F1', to satisfi the repa}ment of the Accrued Interest Oblisation o��er the term of the Special 7as as set forth in Section 7 determined in accordance ���ith Section 3.E belo�� unless the Special Ta� Obligation is prepaid pursuant to the pro�isions of Section 6 thereto. Resolution No. 2016-051 Page No. 8 "Annual 5pecial Taz for Current Interest" means the amount levied on an Assessors Parcel of Developed Property in any Fiscal Year, commencing with the Special Tax Commencement FY, to satisfy the requirement to pay interest on unpaid deferred fees during the 20-year repayment period commencing with the Special Tax Commencement FY and ending on June 30th of the Specia] Tax Final Year. "Assessor" means the Assessor of the County of San Diego. "Assessor's Parcel" means a lot or parcel shown on an Assessor's Parcel Map with an assigned Assessor's Parcel Number. "Assessor's Parcel Map" means an official map of the Assessor designating parcels by Assessor's Parcel Number. "Assessor's Parcel Number" means the number assigned to an Assessor's Parcel by the Assessor for purposes of identification. "Assigned Special Tax Obligation" means for each Assessors Parcel, the amount determined in accordance with Section 3.B below. "Building PermiY' means a building permit issued by the City for construction of a Residential Unit or Non-Residential Property located within CFD No. l 7-I. "Building Square Footage" means all of the squaze footage of usable azea within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, or similar area. The determination of Building Square Footage shall be made by reference to the Building Permit(s) issued for such Assessors Parcel and/or by reference to appropriate records kept by the City. "Certificate of Occupancy" means a certificate issued or approval granted by the Cin�, or other applicable govemment entity, that authorizes the actual occupancy of a Residential Unit for habitation by one or more residents or the occupancy of Non-Residential Property. "CFD Administrator" means an authorized representative of the City, or designee thereof; responsible for de[ermining the Assigned Special Tax Obligation and the Annual Special Tax, for preparing the Annual Special Tax roll and/or calculating the Backup Special Tax. "CFD No. 17-I" means the City of Chula Vista Community Facilities District No. 17-I (Western Chula Vista DIF Financing). "Cih�" means the City of Chula Vista, Califomia. "CounciP' means the City Council of the City acting as the le�islative body of CFD No. 17-1 under the Act. "Count�-" means the County of San Die�*o, California. Resolution No. 2016-0�1 Paee No. 9 "Deferred DIF Obligation" means for each Assessor's Parcel, the remaining balance of DIFs that have been deferred on such Assessor`s Parce] since Buildine Permit issuance as determined in accordance with Section 3.0 belo���. "Developed Propert�" means for each Fiscal Year, all Taaable Propem� for �hich a Buildine Permit was issued prior to Ma�� 1 of the previous Fiscal Yeaz. An Assessors Pazcel classified as Developed Propem but for ���hich the Building Permit that caused such Assessor`s Parcel to be classified as Developed Property has been cancelled and/or voided prior to the Fiscal Year for �vhich Special Ta�es are beine levied shall be reclassified as Undeveloped Propem�. "DIF Deferral Agreement" means. as to an Assessor's Parcel, the Agreement for Deferral of De��elopment Impact Fees bv and benveen the o���ner of such Assessor`s Parcel and the Cit�. "DIF" or "DIFs" sha1L as to an Assessor`s Parcel. ha�e the meanine eiven such terms in the DIF Deferral A�reement applicable to such Assessors Parcel. "Effecti��e Date" shall mean. as to each DIF Deferral Aereement. the effecti�e date of such agreement as specified therein. "Eaempt Properh�" means for each Fiscal Year_ all Assessor's Parcels designated as beine exempt from Special Ta�es pursuant to Section 8 beloN=. "Final Map" means a subdi��ision of propert}� b}� recordation of a final map, parcel map. or lot line adjustment, pursuant to the Subdivision I�4ap Act (California Go<<emment Code Section 66410 et seq.) or recordation of a condominium plan pursuant to Califomia Ci��il Code 428i that creates individual lots for ti�hich Buildine Permits mav be issued ���ithout further subdivision. � "Fiscal Year" means the period starting on Juh 1 and endine the follotiing June 30. "Initial Interest Accrual Date" shall mean, as to an} Assessors Pazcel of De�eloped Propem�, the date on «hich the Certificate of Occupanc}� for such Assessor's Parcel is issued. "Initial Accrued Iuterest Obligation FI"' shall mean, as to anv Assessors Parcel of De��eloped Propert��_ the Fiscal I'ear in �i�hich the Initial Interest Accrual Date for such Assessor's Parcel falls. "Maximum Special Tas Obligation" means for each .Assessor's Parcel, the amount assiened in accordance with Sections 3.A belo�e. "Non-Residential Properh" means all Assessor's Pazcels of De�eloped Property for N�hich a buildino permit has been issued for the purpose of cons[ructin� one or more non- residential strucmres or facilities. Resolution No. 2016-051 Page No. 10 "Original Parcel" means an Assessor's Parcel within the boundaries of CFD No. 17-I that was assigned a Ma�cimum Special Tax Obligation and an Assigned Special Tax Obligation in the prior Fiscal Year but has been subsequently subdivided into Successor Parcels for the current Fiscal Year. "Prepayment Amount" means the amount required to prepay the Annual Special Tax obligation in full for an Assessor's Parcel as described in Section 6.A below. "Property Owner Associatiou Property" means any Assessor's Parcel within the boundaries of CFD No. 17-I owned in fee by a properry owner association, including any master or sub- association. "Public Properh�" means any property within the boundaries of CFD No. 17-I; which is owned by, or irrevocably offered for dedication to the federal government, the State of California, the County, the Cify or any other public agency; provided however that any property owned by a public agency and leased to a private entity and subject to taxation under Section 53340.1 of the Act shall be taYed and classified in accordance with its use. "Residential Property" means all Assessor's Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing one or more Residential Units. "Residential UniY' means each separate residential dwelling unit that comprises an independent facility capable of conveyance or rental, separate from adjacent residential dwelling units. "Special Tax" means any special tax levied within CFD No. 17-I pursuant to the Act and this Rate and MetUod of Apportionment of Special Tax. "Special Tax Commencement FY" shall mean, as to each Assessor's Parcel dassified as Developed Property, the Fiscal Year falling after the first day of the eleventh calendar year after the Effective Date of the DIF Deferral Agreement applicable to such Assessor's Parcel. "Special Tax Final FY" shall mean, as to each Assessor's Parcel of Developed Property; the Fiscal Yeaz commencing on July 1 of nineteenth (19th) Fiscal Year following the Special Tax Commencement FY. "Special Tax Obligation" means the total obligation of an Assessor's Parcel of Developed Property to pay the Specia] Tax for the remaining term of the Special Tax applicable to such Assessor`s Parcel. "Successor Parcel" means an Assessor's Parcel created by the Subdivision of one or more Original Parcels pursuant to Section 4 below. "State" means the State of Califomia. "Tazable Propert}�" means all of the Assessor's Parcels within the boundaries of CFD No. 17-I, ti�hich are not eaempt from tl�e levp of tl�e Special Tax pursuant to law or Section 8 below. Resolution No. 2016-0�1 Paee No. 11 "lindeveloped Properh" means, for each Fiscal Year. all Ta�able Propem� not classified as Developed Property. 2. L.�\D USE CLASSIFICATION Each Fiscal Yeaz. bevinnine Hith Fiscal 1'ear 2016-17. each Assessor's Parcel ���ithin CFD No. 17-I shall be classified as Ta�able Propeny or Exempt Propern. In addition, all Taxable Propem shall further be dassified as De��eloped Property or Undeveloped Propem-, and all such Ta�able Propert}� shall be subject to the le��� of Special Ta�es in accordance ��th this Rate and ?�4ethod of Apportionment of Specia] Tax determined pursuant to Sections 3 and 4 beloH. 3. SPECIAL TA\ RATES A. �'ta�imum Special Tac Obligation The A4a�:imum Special Ta� Obligation applicable to an Assessor's Parcel subject to a DIF Deferral A�reement in the Initial Fiscal Year applicable to such Assessors Parcel shall be determined pursuant to Table 1 belo��'. Table 1 Initial Fiscal 7'ear Alacimum S ecial Tax Obli ation �1aximum Special Assessor's Parcel No. as Obligation Commencine on Juh� 1 of the Fiscal Year follo���na the Initial Interest Accrual Date. the I�4aximum Special Tax Obligation for such Assessor`s Parcel shall increase on Jul}� 1 of each Fiscal Year bv an amount equal to hao percent (2%) of the A4aximum Special Ta� Obligation i❑ effect for the prior Fiscal Year. B. Assi�ned Spccial i�a� Obligation On July 1 of each Fiscal Year commencine the Special 7a� Commencement FY, the CFD Administrator shall determine the Assigned Special Tax Oblieation for that Fiscal 1'ear. The Assigned Special Tax Obligation in an}� ei��en Fiscal Year commencin� the Special � Taa Commencement FY shall be the sum of the Deferred DIF Obligation plus the Accrued Interest Obligation. If for am� Fiscal Year the Assiened Special Ta� Obligation is determined to be ereater than the A4aximum Special Ta� Obligation, then the Assigned Special Tas Obligation shall be equal to the Ma�imum Special Taa Oblieation. C. Dcfcrrcd DlF Obligation The Deferred DIF Oblieation applicable to an Assessor`s Parcel classified as Unde��eloped Propem shall be zero. Resolution No. 2016-051 Page No. 12 The initial Deferred DIF Obligation applicable to an Assessor's Parcel classified as Developed Property shall be determined by the CFD Administrator at the time of issuance of a Building Permit for such Assessors Parcel. The Deferred DIF Obligation shall be equal to the sum of the applicable DIFs specified in the DIF Deferral Agreement for each Building Permit issued for Assessor's Parcels within CFD No. 17-I. The amount of each DIF included in the DIF Fee Obligation for an Assessor's Parcel shall be based on the fee schedule applicable to such DIF in effect at the time of issuance of such Building Permit. The Deferred DIF Obligation in any Fiscal Year applicable to an Assessor's Parcel of Developed Property shall be equa] to the Deferred DIF Obligation in the prior Fiscal Year less � any Annual Special Tax for Facilities payments made in the prior Fiscal Year. If a partial prepayment is made pursuant to Section 6.B below, the Deferred D1F Obligation will also be reduced by the applicable amount of the Deferred DIF Obligation that was prepaid. D. Accrucd Intcrest Oblication The Accrued Interest Obligation in the Initial Fiscal Year applicable to an Assessor's Parcel classified as Developed Property for which a Certificate of Occupancy has not been issued prior to July 1 of such Fiscal Year shall be zero. The Accrued Interest Obligation applicable to any Assessor's Parcel classified as Developed Property shall commence to accrue on the Initial Interest Accrual Date. The Accrued Interest Obligation applicable to such Assessor`s Parcel in the Initial Accrued Interest Obligation FY shall be equal to t��o percent (2%) of the Deferred DIF Obligation as of July 1 of such Fiscal Year multiplied by a fraction the numerator of which is the number of calendar days from and including the Initial Interest Accrual Date to and including June 30th of such Fiscal Year and the denominator of which is 365. The Accrued Interest Obligation for each subsequent Fiscal Year prior to the Special Tax Commencement FY shall be equal to the Accrued Interest Obligation in the prior Fiscal Year plus two percent (2%) of the Deferred DIF Obligation as of July 1 of the prior Fiscal Year. The Accrued Interest Obli�ation in the Special Taa Commencement FY and each subsequent Fiscal Year applicable to an Assessor's Parcel classified as Developed Property shall be equal to the Accrued Interest Obligation as of July 1 of the prior Fiscal Year less any Annual Special Tax for Accrued Interest payments made in the prior Fiscal Yeaz. If a partial prepayment is made pursuant to Section 6.B below. the Deferred DIF Obligation will also be reduced by the applicable amount of the Accrued Interest Obligation that was prepaid. E. .annual Special T�x The Annual Special Tax for Developed Property in any Fiscal Year commencine the Special Tax Commencement FY shall be equal to (i) the Annual Special Tax for Facilities�plus (ii) the Annual Special Ta� for Accrued Interest plus (iii) the Annual Special Tax for Current Interest. Resolution No. 2016-0�1 Paee No. 13 The Annual Special Tax for Facilities in an�- Fiscal Yeaz commencina the Special Taa Commencement FY shall be equal to the Deferred DIF Oblioation on July 1 of the Special Tax Commencement FY times the Repa}znent Rate in Table 2 below that corresponds with such Fiscal Year. In each subsequent Fiscal Yeaz, the Annual Specia] Tax for Facilities ti�ill remain unchaneed until the Deferred DIF Obligation is paid in fuil. The Annual Special Ta� for Accrued Interest in an} Fiscal Year commencine the Special Taa Commencement FY shall be equal to the Accrued Interest Oblieation on Jul�� 1 of the Special Ta� Commencement FY tunes the Repa�ment Rate in Table 2 belo��� that corresponds Nith such Fiscal 1'ear. In each subsequent Fiscal Year. the Annual Special Tat for Accrued Interest �°ill remain unchaneed until the Accrued lnterest Obligation is paid in full. The Annual Special Tax for Current Interest in any Fiscal Year commencine the Special Tax Commencement FY shall be equal to the Deferred DIF Oblisation on Julv 1 of such Fiscal Yeaz times the Current Interest Rate in Table 2 belo�� that corresponds N�ith such Fiscal Year. Table 2 Amortization Table Fiscal Year Repa��ment Rate Current Interest Rate Initial Accrued Interest Obliaation FY throuah the Fiscal Yeaz 0% 0% precedingthe Special Tah Commencement FY Special Tat Commencement FY throueh the 5% 2% Special Tah Final FY 4. A7E�I'H011OF?�PPORTIONI7ENT Commencine «ith the Special Tax Commencement FY and for each follo��ine Fiscal Year. the CFD Administrator shall apportion the Assigned Special Tar. Obligation as set forth beloN�. First: All Original Pazcels that are reflected on the Assessor's Parcel n4aps applicable to the current Fiscal Year ��ill be assiened a Maximum Special Tax ObliQation and Assigned Special Tax Oblieation in accordance «ith Section 3 above. Second: All Original Parcels that are not reflected on the Assessors Parcel A4aps applicable to the current Fiscal 1'ear �iill be assiened a 1�4aximum Special Taz Obligation and Assigned Special Ta� Oblieation in accordance ���ith Section 3 above as if such parcels still e�isted in their pre��ious form. Resolution No. 2016-0�1 Page No. 14 Third: The Maa:imum Special Tax Obligation and Assigned Special Tax Obligation that were calculated in the Second step above will be assigned to each applicable Successor Parcel based on the amount of Taxable Acreage contained in such Successor Pazcel divided b}� the amount of Taa:able Acreage coutained in the relevant Original Parcel. The sum of the Ma�imum Special Tax Obli�ations of each group of Successor Parcels shall be equal to Ma�imum Special Taa Obligation of the applicable Original Parcel that was determined in the Second step. Likewise, the sum of the Assigned Special Tax Obligations of each eroup of Successor Parcels shall be equal to Assigned Special Tax Obligation of the applicable Original Parcel that was determined in the Second step. Fourth: The Special Tax shall be levied on each Assessor's Parcel of Developed Property at 100% of the applicable Annual Special Tax. Successor Pazcels that are assigned a Maximum Special Tax Obligation and an Assigned Special Tax Obligation in the current Fiscal Year will be considered Original Parcels in the following Fiscal Year. Notwithstanding the above, under no circumstances will the Specia] Tax levied in any Fiscal Year against any Assessors Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased as a result of a delinquency or default in the payment of the Special Tax applicable to any other Assessor's Parcel within CFD No. 17-I by more than ten percent (10%) above what would have been levied in the absence of such delinquencies or defaults. 5. COLLECT►ON OF SYECIAL TAXES Collection of the Annual Special Taac shall be made by the County in the same manner as ordinary ad valorem property taxes are collected and the Annual Special TaY shall be subject to the same penalties and the same lien priority in the case of delinquency as ad valorem taaces; provided, however, that the Council may provide for (i) other means of collecting the Special T�, including direct billings thereof to the property owners; and (ii) judicial foreclosure of delinquent Annual Special Taxes. 6. NREPAYMENT OF SPECIAL TAX OBLIGATION A. Prepa�ment in Full Property owners may prepay and permanently satisfy the Special TaY Obligation by a cash settlement with the City as permitted under Govemment Code Section 53344. The Specia] Tax Obli�ation applicable to an Assessor's Parcel of Developed Property, or Undeveloped Property for which a Building Permit has been issued may be prepaid and the obligation to pay the Special Tax for such Assessor's Parcel permanently satisfied as described herein, provided that a prepa}�ment may be made with respect to a particular Assessors Parcel only if there are no delinquent Special Taxes with respect to such Assessor's Parcel at the time of prepa}�ment. An oN�ner of an Assessor's Parcel eligible to prepa}� the Special Taa Resolucion No. 2016-0�1 Paee 1�'0. 1� Oblisation shall pro��ide the CFD Administrator �ith ��Titten notice of intent to prepay, and desienate or identifi� the compan}� or agenc} that Nill be acting as the escroti aeent, if an��. The CFD Administrator shall pro��ide the o�+mer ti�ith a statement of the Prepa��ment Amount for such Assessor's Parcel "�ithin thirtv (30) davs of the request, and ma�� charoe a reasonable fee for providine this sen�ice. The Prepa}Tnent Amount (defined belo�v) shall�be calculated for each applicable Assessors Parcel or eroup of Assessors Parcels as summarized below (capitalized terms as defined belo���): Deferred DIF Oblieation plus Accrued Interest Oblieation plus Prepa«nent Administrative Fees and E�penses Total: equals Prepa}�ment Amount .As of the proposed date of prepayment. the Prepa��ment Amount (defined in Step 14 belo��) shall be caiculated as follo���s: Step No.: 1. Confirm that no Special Ta� delinquencies apply to such Assessors Parcel. 2. For Assessor's Parcels of Developed Propem�_ determine the Deferred DIF Oblieation and the Accrued Interest Obligation. For Assessors Parcels of Unde��eloped Propem� for ���hich a Buildins Permit has been issued, compute the Deferred DIF Oblieation for that Assessor`s Pazcel as thouah it �vas alread�� desienated as Developed Propert��, based upon the Buildin� Permit �hich has alreadv been issued for that Assessor's Pazcel. 3. Calculate the administrati��e fees and expenses of CFD tio. 17-I. including the costs of computation of the prepa}�rnent, the cosu to invest the prepa}�ment proceeds; the costs of redeeming CFD No. 17-I. and the costs of recordine an�� notices to evidence the prepa}ment and the redemption (the "Prepa}�ment Administrative Fees `). 4. The amount to prepa� the Special Tax Obligation is equal to the sum of the amounts computed pursuant to paraeraphs 1, 2 and 3 (the "Prepa}ment Amount"). 5. The Prepa}ment ,amount shall be deposited into the Construction Fund. The amount computed pursnant to pazagraph 3 shall be retained b}` CFD I�io. U-I. The CFD Administrator ���ill confirm that all pre�ioush le�ied Special Tases ha�e been paid in full. «�ith respect to an�� Assessor's Parcel for «hich the Special Tak Oblieation is prepaid in full, once the CFD Administrator has confirmed that all pre��ioush le�ied Special Takes ha��e been paid, the Council shall cause a suitable notice to be recorded in compliance �vith the Act. to indicate the prepayment of the Special Ta� and the release of the Special Tas lien on such Assessor`s Parcel, and the obligation of the onner of such Assessor's Parcel to pa}� the Special Ta� shall cease. Resolution No. 2016-0�1 Paee No. 16 B. Nartial Prepa}'ment The Special Tax on an Assessor's Parcel of De��eloped PropeRy or Undeveloped Property for which a building permit has been issued may be partially prepaid. The amount of the prepayment shall be calculated as in Section 6.A, except that a partial prepayment shall be calculated according to the follow�ng formula: PP = (PE-A) x F+A These terms have the following meaning: PP =the partial prepayment PE =the Prepayment Amount calculated according to Section 6.A F = the percentage by���hich the owmer of the Assessor's Pazcel(s) is partially prepayin� the Special Tax Obligation A = the Prepayment Administrative Fees and Eapenses from Section 6.A The oN�ner of any Assessor`s Parcel who desires such partial prepayment shall notify the CFD Administrator of (i) such owners intent to partially prepay the Special Tax Obligation, (ii) the percentage by which the Special Tax Obligation shall be prepaid, and (iii) the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the o�mer with a statement of the amount required for the partial prepayment of the Special Tax Obligation for an Assessor's Parcel within sixty (60) days of the request and may charge a reasonable fee for providing this service. With respect to any Assessor's Parcel that is partially prepaid, the City shall (i) distribute the funds remitted to it according to Section 6.A., and (ii) indicate in the records of CFD No. 17- [ that there has been a partial prepayment of the Special Tax Obligation and that the remaining Special Tax Obligation of such Assessor's Parcel, equal to the outstanding percentaee (1.00 - F) of the Deferred DIF Obligation and the Accrued Interest Obligation, shall continue to be levied on such Assessor`s Parcel in the same manner as before the Partial Prepayment. 7. TERM OF SPECIAL TAX The Special Tax shall be levied as long as necessary to satisfy the Assigned Special Tax Obligation for a period not to exceed thirty (30) Fiscal Years commencing with Special T� Commencement FY; provided however that the Special Tax will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined that all CFD No. 17-I obligations have been satisfied. 8. EXED4PT[ONS 'l�he CFD Administrator shall classify as Exempt Property (i) Assessor's Parcels of Public Property, (ii) Assessors Parcels of Property Owner Association Property, or (iii) Assessors Parcels which are used as places of worship and are exempt from ad valorem property taaes because they are oN�ned by a religious organization, (iv) Assessor's Parcels with public or utility Resolution I�'o. 2016-0�1 Paee No. 17 easements mal:ing impractical their utilization for other than the purposes set forth in the easement, and (v) Assessor`s Parcels of De��eloped Propert}� classified as Non-Residential Propem as determined reasonabl}�by the CFD Administrator. If the use of an Assessor`s Parcel of Exempt Propert�� changes so that such Assessor`s Parcel is no longer classified as one of the uses set forth in the first paraeraph of Section 8 abo��e that would make such Assessor's Parcel elieible to be classified as E�empt Propert��, such Assessors Parcel shall cease to be dassified as E�empt Propem� and shall be deemed to be Ta�able Propem�. 9. APPE aLS An} lando«ner �iho pays the Special Tax and claims the amount of the Special Ta� levied on his or her .Assessors Parcel is in error shall first consult with the CFD Administrator regazdine such error not later than thirt��-sia (36) months afrer first havine paid the first installment of the Special Ta� that is disputed. If follo�vine such consultation the CFD Administrator determines that an error has occurred. then the CFD Administrator shall tal:e am� of the follo��ing actions. in order of priorin�_ in order to correct the error: (i) Amend the Special Ta� le��� on the lando��mers Assessor's Parcel(s) for the current Fiscal I'ear prior to the pa}ment date. (ii) Require the CFD to reimburse the lando���ner for the amount oFthe overpa��ment to the extent of a��ailable CFD funds. or (iii) Grant a credit aeainst eliminate or reduce the future Special Tases on the landoNner`s Assessor`s Parcel(s) in the amount of the o��erpayment. If folloti�ine such consultation and action bv the CFD Administrator the lando«mer believes such error still exists, such person ma�� file a �vritten notice of appeal �vith the Citv Council. lipon the receipt of such notice, the Cit�� Council or desienee mav establish such procedures as deemed necessan to undertake the re�iew of anv such appeaL If the Citv Council or desienee determines an error still exists. the CFD Administrator shall ta}:e an�� of the actions described as (i). (ii) and (iii) abo�e. in order of priorit}`_ in order to correct the error. The Cit� Council or desienee thereof shall interpret this Rate and Method of Apportionment of Special Ta� for purposes of clarifi�ing anv ambieuities and ma4:e determinations relative to the administration of the Special Tax and anv lando��ner appeals. The decision of the Cit�• Council or desienee shall be final.