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HomeMy WebLinkAboutReso 2016-200 RESOLUTION N0. 2016-200 RESOLUTION OF THE CITY COUI�'C[L OF THE CITY OF CHULA VISTA DECLARING ITS li�'TENTION TO AUTHORIZE THE AI��TEXATION OF TERRITORY IN 7�HE FUTURE TO COMMUI�TITY FACILITIES DISTRICT NO. 18M (07AY RANCH VILLAGE 3) WHEREAS, the Ciri- Council of the City of Chula Vista, Califomia (`City Council"), desires to initiate proceedines to authorize the annesation in the future oF certain territor�� to Communiry Facilities District No. 18M (Ota�� Ranch Village 3) (the "District�') pursuant to the terms and provisions of the "Mello-Roos Communin� Facilities Act of 1982", beine Chapter 2.�. Part 1. Di��ision 2. Title � of the Go��emment Code of the State of Califomia (the "Acr') and the City of Chula Vista Communit�� Facilities District Ordinance enacted pursuant to the powers reserved bv the Cit�� of Chula V ista under Sections 3. � and 7 of Article XI of the Constitution of the State of Califomia (the "Ordinance ') (the Act and the Ordinance mav be referred to collecti��elv as the "Community Facilities District Law'); and WHEREAS, it is determined to be ���ithin the public interest and convenience to establish a procedure to allow� and provide for future annexations to the District and further to specify the amount of special tax that ���ould be le��ied and set forth the terms and conditions for certification of anv annexation in the future: and WHEREAS; the territory proposed to be authorized to be annexed in the future shall be kno�m and designated as Future Annexation Area, Communitv Facilities District I�'o. 18M (Otav Ranch Villaee 3) (the "Future Anneaation Area'); and a map desienated as "Future Annexation Area; Community Facilities District No. 18M (Ota�� Ranch Village 3), Cit}� of Chula Vista, Counn� of San Diego, State of Califomia ' (the "Future Annexation Area Boundazy Map') shoti�ing the territory proposed to be authorized to be anne�ed in the future has been previously submitted and approved and a copy thereof shall be kept on file with the transcript of these proceedings. NOW. THEREFORE. IT IS HEREBY RESOLVED: SECTION 1. Recitals. The abo��e recitals are all true and correct. SECTION 2. Authorization. These proceedings for future annesations aze authorized and initiated by this legislative bodv pursuant to the authorization of the Communih� Facilities District Law and specifically Section �3339.2 of the Govemment Code of the State of California. SECTION 3. Public Con��enience and Necessit��. This Cit<< Council herebv determines that the public convenience and necessit�� requires a procedure to allo�v and authorize temtor�� to be annesed in the furure to the District in order to finance the pro��ision of Authorized Services (defined belo�v) for the temton�that is annexed to the District. Resolution No. 2016-200 Page No. 2 SECTION 4. Boundaries of the District and the Future Annexation Area. A general , description of the territory included in the District is hereinafrer described as follows: All that property and temtory as previously included within District, as said propert}� was shown on a map as approved by this City Council desi�nated as "Proposed Boundazy Map of Communiry Facilities District No. 18M (Otay Ranch Village 3), City of Chula Vista County of San Diego, State of Califomia," a copy of which is on file in the Office of tl�e City Clerk and shall remain open for public inspection. A description of the boundaries and territory proposed to be authorized to be annexed in the future includes all that property and territory sl�own on the Future Annexation Area Boundary Map, a copy of which is on file in the OPfce of the City Clerk and shall remain open for public inspection. Future annexation proceedings may only be completed with the unanimous consent of the owner or oNmers of any parcel proposed for anneaation. SECTION 5. Name of the District and Future Annexation Area. The name of the District is Community Facilities District No. 18M (Otay Ranch Village 3) of the Ciry of Chula Vista, and the designation for the Future Annexation Area shall be Future Annexation Area, Community Facilities District No. 18M (Otay Ranch Village 3). SECTION 6. Authorized Services. The Authorized Services to be financed by the levy of special taxes to be levied on specific territory within tl�e Future Annexation Area to be annexed to the District may include some or all of such Authorized Services or may indude alternatives to the Authorized Services. The Authorized Services shall to the maximum extent practicable, taking into account budgetary and operational demands of the City, be provided in common within the District and the Future Annexation Area. The City Council finds Chat the Authorized Services described in this Section 6 hereof are necessary to meet increased demands placed upon the City as a result of new development occurring within the boundaries of the District and the Future Annexation Area. The cost of the payment of the Authorized Services includes certain Incidental Expenses as such term is defined in Government Code Section 53317(e) and may include, but not be limited to. all costs associated with the anneaation of the Future Annexation Area to the District; the costs of collecting any special taxes; and costs otherwise incurred in order to cam� out the authorized purposes of the District. Resolution No. 2016-Z00 Pase No. 3 SECTION 7. Snecial Taxes. It is hereb�� further proposed that, except where funds aze otherti�se available, a special tax sufficient to finance the payment of the Authorized Sen�ices (the "Special Ta�c `) for the temtory of the Future Annexation Area upon the annexation of such territon� to the District and related Incidental Expenses authorized by the Act, secured bv recordation of a continuing lien against all non-exempt temtor}� in the Future Annexation Area that annexes to the District. N�ill be le��ied annuall�� H�ithin the boundaries of such territon� upon the annexation thereof to the District. For further paniculars as to the rates and method of apportionment of the proposed Special Tas (the "Rate and Method of Apportionment"). reference is made to the attached and incorporated Exhibit B, �i�hich sets forth in sufficient detail the rates and method of apportionment of the Special Tax to allo�+� each lando«mer or resident within the temtory in the proposed Future Annexation Area to dearly estimate the ma�:imum amount of the Special Tax that such person w�ill have to pay upon the annexation of such temton� to the District. The Special Tax for any parcel may be prepaid and permanentl}� satisfied in ��=hole or in part pursuant to the pro��isions of the Rate and Method of Apportionment. Not��ithstandine the foreeoing. if the actual cost of providing Approved Sen�ices applicable to any pazcel ��ithin the proposed Future Annexation Area is hieher or loti�er than the cost of pro��idine the Approved Sen�ices applicable to the parcels within the ezistina District, a hieher or IoN�er Special Tax ma}� be levied on such pazcel �vithin the proposed Future Annexation Area subject to the unanimous approval and election of the oN�ner or oumers of such parceL In anv such circumstance; the Rate and Method of Apportionment ma�� be revised to reflect the hieher or lower Special Ta.t, as applicable. Under no circumstances �vill the Special tat le��ied in am Fiscal Yeaz against an�� residential pazcel be increased as a consequence of delinquenc�- or default b�� the otimer or ouners of anv other pazcel or parcels �aithin the District b�� more than ]0 percent (]0%) abo��e the amount that would have been le��ied in that Fiscal Yeaz had there never been anv such delinquencies or defaults. A pazcel shall be considered "used for pri��ate residential purposes not later than the date on H�hich an occupancy permit or the equi��alent for pri��ate residential use is issued for such pazcel. The Special Tax herein proposed. to the extent possible, shali be collected in the same manner as ad valorem property ta�:es or in such other manner as this City Council or its designee shall determine, including; without limitation. direct billing of the affected property owmers: and shall be subject to the same penalties, procedure. sale and lien prioritv in any case of delinquency as applicable for ad valorem taxes. Anv Special Tax that may not be collected on the Countv tak roll shall be collected through a direct billing procedure b�� the Treasurer of the City of Chula V ista (the "Cit��`), acting for and on behalf of the District. The Special Tal obligation for an}� parcel mav not be prepaid. Pursuant to Government Code Section �3340 and escept as provided in Govemment Code Section �3317.3, properties of entities of the state, federal, and local govemments shall be e�empt from the le��� of the Special Taz. Resolution No. 2016-200 Page No. 4 SECTION 8. Effective Date of Future Annexation. Annexation of any parcel in the Future Annexation Area to the District in the future shall be effective only upon the unanimous approval and election of the o�mer or owners of any such parcel authorizing the levy of the Special Taac upon such parcel following the annexation of such parcel to District, and no further public hearings or additional proceedings will be required to accomplish such annexation. SECTION 9. Public Hearine. Notice is given that on November 8, 2016 at 5:00 p.m., or as soon thereafrer as the public hearing may be called, in the regular meeting place of the City Council being the Council Chambers, located at 276 Fourth Avenue, Chula Vista, California, a public hearing will be held ���here this City Council will consider the authorization for annexation of certain temtory in the future to the District,the proposed rate and method of apportionment of the special tax to be levied within said proposed Future Annexation Area, upon the annexation thereof to the District, and all other matters as set forth in this resolution of intention. At the above-mentioned time and place for public hearing any persons interested, induding taxpayers and property owners may appear and be heard. The testimony of all interested persons will be heard and considered. Any protests may be made orally or in writing. However, any protests pertaining to the regularity or sufficiency of the proceedings shall be in writing and clearly set foRh the irregularities and defects to which the objection is made. All written protests shall be filed with the City Clerk of the City Council on or before the time fixed for the public hearing. Written protests may be withdrawm in writing at any time before the conclusion of the public hearing. If a majority file written protests against the proposed addition of territory to the District in the future, and protests are not withdrawn so as to reduce the protest to less than a majority, no further proceedings to authorize the proposed Future Annexation Area to be annexed to the District in the future shall be undertaken for a period of one year. SECTION 10. Notice. Notice of the time and place of the public hearing shall be given by the Ciry Clerk by causing the publication of a Notice of Public Hearing in the legally designated newspaper of general circulation; such publication pursuant to Section 6061 of the Govemment Code, with such publication to be completed at least seven (7) days prior to the date set for the public heazing. SECTION 11. Survival. If any section, subsection, subdivision, sentence, clause, or phrase in this Resolution or any part thereof is for any reason held to be unconstitutional or invalid, ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining poriions of this Resolution or any part thereo£ The City Council hereb�� declares that it would have adopted each section irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, or phrases be declared unconstitutional, invalid. or ineffective. SECTION l2. Effective Date. This Resolution shall become effective immediatelv upon its adoption. Resolucion No. 2016-200 Pa�e No. � Presented v ' Appro��ed as to form by � _ � Kellv G. Broug ton, FASLA en �Gooeins Director of Development Ser��ices Ci , ttom i� PASSED. APPROVED. and ADOPTED b�� the Citv Council of the Citv of Chula Vista. California. this 4th dav of October 2016 b�� the follo�aina vote: AYES: Councilmembers: Aeuilar. Bensoussan. McCann. Miesen, and Salas NAYS: Councilmembers: I�'one ABSENT: Councilmembers: None � Marv las. Ma�or ATTEST: �� /�� Donna R. I�'orris. CMC. Citv Clerk STATE OF CALIFOR�\'IA ) COtJNTY OF S.Ai\' DIEGO ) CITY OF CHiTLA VISTA ) 1. Donna R. Noms. Ciri- Clerk of Chula Vista. Califomia. do herebvi certifi� that the foreaoins Resolution No. 2016-Z00 was duly passed; appro��ed, and adopted bv the City Council at a regular meeting of the Chula Vista City Council held on the 4th dav of October 2016. Eaecuted this 4th da�� of October 2016. � � Donna R. Noms. CMC. Cirv Clerk Resolution No. 2016-200 Page No. 6 EXHIBIT A DESCRIPTION OF AUTHORIZED SERVICES The types of services (the "Services ') to be funded by Special Taxes levied within the District and the Future Annexation Area, upon the annexation to the District, shall include maintenance; servicing and replacement of(a) landscaping, including, but not limited to, trees, shrubs, grass, other ornamental vegetation located in or on slopes, parkways and medians; (b) faci]ities that are directly related to storm water qualiry control; (c) walls and fencing; and (d) trails (collectively, the `9mprovements") located in public right-of-way, property owned by the City of Chula Vista ("City") or property over which the City has an easement authorizing the City to maintain such landscaping, facilities, walls and fencing and trails. For purposes of this description of the Services to be funded by the levy of Special Taxes within the District, including the Future Annexation Area upon annexation to the District, "maintenance ' includes, but is not limited to, the fumishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any of the Improvements, includine: (a) Repair, removal, or replacement of all or any part of any Improvement Area No. 1 Facilities. (b) Providing for the life, groNrth, health, and beauty of landscaping, including cultivation, imgation, trimming, spraying, fertilizing, or treating for disease or injury. (c) The remova] of trimmings, rubbish, debris, silt, and other solid waste. (d) The cleaning, sandblasting, and painting of walls and oYher Improvement Areas to remove or cover graffiti. (e) The elimination, control, and removal of rodents and vermin. (fl) The maintenance and cleaning of drainage and other storm water control facilities required to provide storm water quality control. "Service" or "servicing" means the fumishing of: (a) Electric current or energy, gas, or other illuminating agent for any public lighting facilities or for the lighting or operation of any other Improvements. (b) Water for the irrigation of any landscaping or the operation or maintenance of any other Improvements. For purposes of this description of the Services to be funded by the levy of Special Taxes within the District, including the Future Annexation Area upon annexation to the District; "administrative expenses ' means the actual or estimated costs incurred by the City, acting for and on behalf of the District as the administrator thereof, to determine, levy and collect the Special Taxes within the District, including the Future Annexation Area upon the annexation to the District; including salaries of City employees and a proportionate amount of the City's general administrative overhead related thereto, and the fees of consultants and leQal counsel providing services related to the administration of the District the costs of collecting installments of the Special Tases levied within the District; and any other costs required to administer the District as determined by the City. Resolution No. 2016-200 Paee I�TO. 7 E�HIBIT "B" Rate and Method of Apportionment of Special Tax City of Chula Vista Community Facilities District No. 18M (Otay Ranch Village 3) A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels of Taxable Property within the boundaries of Community Facilities District No. 18M (Otay Ranch Village 3) of the City of Chula Vista and collected each Fiscal Year commencing with Fiscal Year 2017-18 in an amount determined by the CFD Administrator through the application of the procedures described below. All of the real property within CFD No. 18M, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre" or "Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable Final Subdivision Map, other final map, other parcel map, other condominium plan, or functionally equivalent map or instrument recorded in the Office of the County Recorder. The square footage of an Assessor's Parcel is equal to the Acreage multiplied by 43,560. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the actual or estimated costs incurred by the City, acting for and on behalf of the CFD as the administrator thereof, to determine, levy and colled the Special Taxes, including salaries of City employees and a proportionate amount of the City's general administrative overhead related thereto, and the fees of consultants and legal counsel providing services related to the administration of the CFD; the costs of collecting installments of the Special Taxes; and any other costs required to administer the CFD as determined by the City. Resolution No. 2016-Z00 Page No. 8 "Assessor's Parcel" or "Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned assessor's parcel number. "Assessors Parcel Map" means an official map of the Assessor of the County designating parcels by assessor's parcel number. "CFD Administretor" 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. "CFD No. 18M" or "CFD" means Community Facilities District No. 18M (Otay Ranch Village 3) of the City of Chula Vista. "City" means the City of Chula Vista. "Community Purpose Facility Property" or "CPF Property" means all Assessor's Parcels which are ciassified as community purpose facilities and meet the requirements of City Ordinance No. 2883. "Construction Cost Index" means, for any Fiscal Year, the applicable Construction Cost Index for the City of Los Angeles as set forth in the Engineering News Record for July of such Fiscal Year. In the event that this rate is no longer published or provided, the CFD Administrator shall choose a comparable rate to use in its place. "Consumer Price Index for Urban Wage Earners and Clerical Workers" or "CPI-W" means the applicable CPI-W as set forth by the United States Department of Labor, Bureau of Labor Statistics for July of such Fiscal Year. In the event that this rate is no longer published or provided, the CFD Administrator shall choose a comparable rate to use in its place. "Council" means the City Council of the City, acting as the legislative body of the CFD. "County" means the County of San Diego, California. "Developed Property" means all Taxable Property for which a building permit was issued prior to the March lst preceding the Fiscal Year in which the Special Tax is being levied. "Dwelling UniY' or "DU" means each separate residential dweiling unit that comprises an independent facility capable of conveyance or rental separate from adjacent residential dwelling units. "Exempt Property" means all Assessor's Parcels within CFD No. 18M that are exempt from the Special Taxes pursuant to law or Section F herein. "Final Subdivision Map" means a subdivision of property creating residential or non-residential buildable lots by recordation of a final subdivision map or parcel map pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.), or recordation of a Resolution I�'o. 2016-200 Page I`'o. 9 condominium plan pursuant to California Civil Code 1352, that creates individual lots for which building permits may be issued without further subdivision and is recorded prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied. "Fiscal Year' means the period starting July 1 and ending on the following June 30. "Land Use Class" means any of the classes listed in Table 1. "Maximum Special Tax Basis" means the amount determined in accordance with Section C below that represents the actual costs associated with providing the Services funded by CFD No. 18M. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C below that may be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property. "Multi-Family Propert�' means all Assessor's Parcels of Residential Property consisting of two or more for-rent Dwelling Units that share common walls, including, but not limited to, apartments and townhomes that are not for sale to an end user and are under common management. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a building permit(s) has been issued for a structure or structures for non-residential use. "Otay Water District Commodity Rate" means the maximum rate charged by the Otay Water District for recycled water on July ls` of any Fiscal Year. In the event that this rate is no longer published or provided, the CFD Administrator shall choose a comparable rate to use in its place. "Property Owner Association Propert�' means any property within the boundaries of the CFD that is owned by, or irrevocably dedicated as indicated in an instrument recorded with the County Recorder to, a property owner association, including any master or sub-association. "Public Property" means any property within the boundaries of the CFD that is, at the time of the CFD formation, expected to be used for any public purpose and is owned by or dedicated to the federal government, the State, the County, the City or any other public agency. "Reserve Fund" means a fund that shall be maintained for the CFD each Fiscal Year to provide necessary cash flow for the first six months of each Fiscal Year, working capital to cover monitoring, maintenance and repair cost overruns and delinquencies in the payment of Special Taxes and a reasonable buffer to prevent large variations in annual Special Tax levies. "Residential Propert�' means all Assessor's Parcels of Developed Property for which a building permit(s) has been issued for purposes of constructing one or more residential dwelling unit(s). "Services" means those authorized services that may be funded by CFD No. 18M pursuant to the Act, as amended, including, without limitation, those services authorized to be funded by CFD No. 18M as set forth in the documents adopted by the City Council at the time CFD No. 18M was formed. "Single Family Attached Property" means all Assessor's Parcels of for-sale Residential Property consisting of one or more Dwelling Unit(s) that share common walls with one or more other Resolution No. 2016-200 Page No. 10 Dwelling Unit(s), including, but not limited to, duplexes, triplexes, townhomes, and condominiums. "Single Family Detached Property" means all Assessor's Parceis of Residential Property consisting of a single Dwelling Unit. "Speciai Tax" means the Special Tax levied pursuant to the provisions of sections C and D below in each Fiscal Year on each Assessor's Parcel of Developed Property and Undeveloped Property in CFD No. 18M to fund the Special Tax Requirement. "Special Tax RequiremenY' means the amount, as determined by the CFD Administrator, for any Fiscal Year to: (i) pay the costs of providing the Services during such Fiscal Year, (ii) pay Administrative Expenses associated with the Special Tax, (iii) establish or replenish the Reserve Fund, (iv) pay incidental expenses related to the Services as authorized pursuant to the Act, (v) fund an amount equal to a reasonable estimate of delinquencies expected to occur in the Fiscal Year in which the Special Tax will be levied ("Estimated Special Tax Delinquency AmounY') and (vi) fund the shortfall, if any, in the Special Tax revenues collected in the preceding Fiscal Year necessary to fund the Special Tax Requirement for Services for such Fiscal Year where such shortfall resulted from delinquencies in the payment of Special Taxes in such Fiscal Year that exceeded the Estimated Special Tax Delinquency Amount included in the Special Tax Requirement for Services for such Fiscal Year, less (vii) any funds available in the Reserve Fund or other funds associated with CFD No. 18M. "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No. 18M of the CFD that are not exempt from the Special Tax pursuant to law or as defined below. "Undeveloped Propert�' means, for each Fiscal Year, all Taxable Property not classified as Developed Property. B. ASSIGNMENT TO CATEGORIES OF SPECIAL TAX Each Fiscal Year, beginning with Fiscal Year 2017-18, using the definitions above, each Assessor's Parcel within CFD No. 18M shall be classified by the CFD Administrator as Taxable Property or Exempt Property. In addition, each such fiscal Year, each Assessor's Parcel of Taxable Property shall be further ciassified by the CFD Administrator as Developed Property or Undeveloped Property. Developed Property shall be further assigned to a Land Use Class as specified in Table 1. The Land Use Class of each Assessor's Parcel of Residential Property or Non-Residential Property shall be determined based on the records of the County Assessor or other such information provided by the City. Commencing with Fiscal Year 2017-18 and for each subsequent Fiscal Year, Developed Property shall be subject to the levy of Special Taxes pursuant to Section C below. In some instances, an Assessor's Parcel of Developed Property may contain more than one Land Use Class. The Maximum Special Tax levied on such Assessor's Parcel shall be the sum of the Maximum Special Taxes for all Land Use Classes located on that Assessor's Parcei. Resolution No. 2016-200 Paee Iv'o. ] 1 C. MAXIMUM SPECIAL TAX RATE 1. Developed Property The Maximum Special Tax for any Assessor's Parcel classified as Developed Property shall be determined by reference to Table 1 and the paragraphs that follow Table 1. TABLE 1 Maximum Special Tax Basis for Developed Property Community Facilities District No. 18M (Fiscal Year 2016-17) Maximum Maximum Maximum Maximum Special Tax Special Tax Special Tax Basis Special Tax Basis Land Use Class Basis for Basis for for Asset Labor Water Replacement Single Family $ g12.16 $341.42 255.70 1,509.28 Detached Property Single Family Attached Property 729'�3 $273.14 204.56 1,207.43 Multi-Family 7z 97 $27.31 20.46 120.74 Property Non-Residential 3,648.64 $1,365.68 1,022.82 6,037.13 Property The Maximum Special Tax Basis shall be equal to the sum of Maximum Special Tax Basis for Labor, Maximum Special Tax Basis for Water and Maximum Special Tax Basis for Asset Replacement as shown in Table 1 above. In determining the Maximum Special Tax Basis, the components of the Maximum Special Tax Basis for each Land Use Description shall be increased in the 2017-18 Fiscal Year, and each fiscal Year thereafter, as follows: i. the annual percentage change of the Maximum Special Tax Basis for Labor shall be equal to the annual percentage change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W); and ii. the annual percentage change of the Maximum Special Tax Basis for Water shall be equal to the annual percentage change in the Otay Water District Commodity Rate; and iii. the annual percentage change of the Maximum Special Tax Basis for Asset Replacement shall be equal to the annual percentage change in the Engineering News Record Construction Cost Index for the Los Angeles Area. The Fiscal Year 2016-17 Maximum Special Tax shall be equal to the Fiscal Year 2016-17 Maximum Special Tax Basis. In each subsequent Fiscal Year, the Maximum Special Tax shall Resolution No. 2016-200 Page No. 12 be increased by an amount not less than two percent (2%) and not greater than six percent (6%) that results in a minimal absolute difference from the Maximum Special Tax Basis for that Fiscal Year. 2. Other Property Types No Special Tax shall be levied on Undeveloped Property or Exempt Property. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2017-18, and for each subsequent Fiscal Year, the CFD Administrator shall levy the Special Tax on all Taxable Property of CFD No. 18M until the total amount of Special Tax levied equals the Special Tax Requirement. The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property within CFD No. 18M up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax Requirement. Notwithstanding the above, under no circumstances wiil the Special Tax levied against any Assessor's Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased as a consequence of delinquency or default by the owner of any other Assessor's Parcel within the CFD by more than ten percent (10%) above what such Special Tax would have been in the absence of delinquencies. E. PREPAYMENT OF THE SPECIAL TAX The Special Tax shall be levied in perpetuity for the purpose of financing ongoing authorized Services and therefore may not be prepaid. F. EXEMPTIONS The City Council shall classify as Exempt Property: (i) Public Property, (ii) Property Owner Association Property, (iii) CPF Property, (iv) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, including but not limited to property designated for open space, trails, pathways, parks or park and recreation related facilities, and (v) property reasonably designated by the City or CFD Administrator as Exempt Property due to deed restrictions, conservation easement, or similar factors. G. APPEALS Any landowner who pays the Special Tax and claims the amount of the Special Tax levied on his or her Assessor's Parcel is in error shall first consult with the CFD Administretor regarding such error not later than thirty-six (36) months after first having paid the first installment of the Special Tax that is disputed. If following such consultation, the CFD Administrator determines that an error has occurred, then the CFD Administrator shali take any of the following actions, in order of priority, in order to correct the error: (i) Amend the Special Tax levy on the landowner's Assessor's Parcel(s) for the current Fiscal Year prior to the payment date, (ii) Require the CFD to reimburse the landowner for the amount of the overpayment to the extent of available CFD funds, or Resolution No. 2016-200 Paee I`'o. 13 (iii) Grant a credit against, eliminate or reduce the future Special Taxes on the landowner's Assessor's Parcel(s) in the amount of the overpayment. If following such consultation and action by the CFD Administrator the landowner believes such error still exists, such person may file a written notice of appeal with the City Council. Upon the receipt of such notice, the City Council or designee may establish such procedures as deemed necessary to undertake the review of any such appeal. If the City Council or designee determines an error still exists, the CFD Administrator shall take any of the actions described as (i), (ii) and (iii) above, in order of priority, in order to correct the error. The City Council or designee thereof shall interpret this Rate and Method of Apportionment of Special Tax for purposes of clarifying any ambiguities and make determinations relative to the administration of the Special Tax and any landowner appeals. The decision of the City Council or designee shall be final. H. MANNER OF COLLECTION Special Taxes levied pursuant to Section D above shall be collected in the same manner and at the same time as ordinary od volorem property taxes, provided that the CFD Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of the CFD or as otherwise determined appropriate by the CFD Administrator. I. TERM OF SPECIAL TAX Taxable Property in the CFD shall remain subject to the Special Tax in perpetuity.