HomeMy WebLinkAboutReso 2020-149RESOLUTION NO. 2020-149
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA, ACTING AS THE LEGISLATIVE BODY OF
COMMUNITY FACILITIES DISTRICT NO. 18M (OTAY
RANCH VILLAGE 3) CLARIFYING AMBIGUITIES IN THE
RATE AND METHOD OF APPORTIONMENT FOR SUCH
COMMUNITY FACILITIES DISTRICT, MAKING CERTAIN
DETERMINATIONS REGARDING THE ADMINISTRATION
OF SUCH SPECIAL TAX, AND APPROPRIATING FUNDS
THEREFOR
WHEREAS, the City Council (the “City Council”) of the City of Chula Vista, California
(the “City”), has previously undertaken proceedings to form Community Facilities District No
18M (Otay Ranch Village 3) (the “District”) and designated territory proposed to be authorized to
be annexed to the District in the future pursuant to the 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”) and the City of Chula Vista Community Facilities District
Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5
and 7 of Article XI of the Constitution of the State of California to finance certain authorized
services (the “Services”); and
WHEREAS, the qualified electors of the District, voting in a special election held on
November 8, 2016, approved the authorization to levy special taxes within the District pursuant to
a rate and method of apportionment of such special taxes for the District (the “RMA”) attached as
Exhibit D to the community facilities district report (the “CFD Report”) submitted to the City
Council on November 8, 2016 pursuant to Section 53321.5 of the Act and attached hereto as
Exhibit A; and
WHEREAS, subsequent to the formation of the District and such election, HomeFed
Corporation (“HomeFed”), the owner of a mixed use/community purpose facility site within the
District consisting of Assessor Parcel Numbers 644-061-08-00 and 644-061-09-00 (the “Affected
Lots”), has consulted with the CFD Administrator (as defined in the RMA) and filed a written
notice of appeal with the City Council (the “Appeal”) pursuant to Section G of the RMA regarding
the City’s determination of the amount of the special tax that will apply to the Affected Lots under
the RMA in Fiscal Year 2019-20 and thereafter; and
WHEREAS, the District was formed to provide the Services according to a budget with
allocations for various anticipated land uses classes within the District, such allocation was
demonstrated in Exhibit C (“Exhibit C”) of the CFD Report; and
WHEREAS, the Appeal requested that the special tax applicable to the Affected Lots in
Fiscal Year 2019-20 and thereafter be determined based upon only designating the Affected Lots
only as Multi Family Property, rather than as Multi-Family Property and Non-Residential Property
(as defined in the RMA); and
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Resolution No. 2020-149
Page No. 2
WHEREAS, Exhibit C shows the intent to levy the special tax on the Affected Lots only
as Multi-Family Property, but Section B of the RMA creates an ambiguity because of language
regarding the application of special taxes for property with more than one Land Use Class (as
defined in the RMA); and
WHEREAS, Section G of the RMA provides that the City Council shall interpret the RMA
for purposes of clarifying any ambiguities and make determinations relative to the administration
of the special tax and any landowner appeals and the City Council desires to clarify the ambiguity
in the RMA and make determination relative to the administration of the special tax on the Affected
Lots.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
acting as the legislative body of Community Facilities District No. 18M (Otay Ranch Village 3),
as follows:
SECTION 1. Recitals. The above recitals are all true and correct.
SECTION 2. Clarifying Ambiguities in the RMA. The City Council hereby clarifies that
special tax applicable to the Affected Lots for Fiscal Year 2019-20 and thereafter shall be
determined based upon designating the Affected Lots as Multi Family Property and should exclude
designating the Affected Lots as Non-Residential Property.
SECTION 3. Making Determinations Regarding the Appeal. The City Council hereby
determines that the District shall refund HomeFed the amount of the overpayment of special taxes
in Fiscal Year 2019-20 as the result of the levy on the Affected Lots as Non-Residential Property.
SECTION 4. Appropriating Funds. The City Council hereby appropriates $64,997.94
from the available fund balance of CFD No. 18M and authorizes refund of same to HomeFed.
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Resolution No. 2020-149
Page No. 3
Presented by Approved as to form by
Tiffany Allen Glen R. Googins
Director of Development Services City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 23rd day of June 2020 by the following vote:
AYES: Councilmembers: Diaz, Galvez, McCann, Padilla, and Casillas Salas
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Mary Casillas Salas, Mayor
ATTEST:
Kerry K. Bigelow, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2020-149 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 23rd day of June 2020.
Executed this 23rd day of June 2020.
Kerry K. Bigelow, MMC, City Clerk
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C I T Y O F
Chula Vista
CFD Report
Community Facilities District
No. 18M (Otay Ranch Village 3)
October 2016
Prepared by:
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TABLE OF CONTENTS
TABLE OF CONTENTS ..................................................................... 2
I. INTRODUCTION ............................................................................ 1
II. GENERAL DESCRIPTION & BOUNDARIES OF CFD NO. 18M.............. 2
III. FUTURE ANNEXATION AREA ......................................................... 3
IV. DESCRIPTION OF SERVICES .......................................................... 4
V. COST ESTIMATES ........................................................................ 5
VI. RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX ............... 6
EXHIBIT A (BOUNDARY MAP) ............................................................... 9
EXHIBIT B (FUTURE ANNEXATION AREA) ............................................ 11
EXHIBIT C (PRELIMINARY BUDGET) .................................................... 13
EXHIBIT D (RATE AND METHOD OF APPORTIONMENT) .......................... 15
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I. Introduction
WHEREAS, the City Council of the City of Chula Vista (hereinafter referred to as the “City
Council”), in the State of California, did, pursuant to the terms and pro visions of Chapter 2.5 of
Part 1, of Division 2, of Title 5 of the Government Code of the State of California, as amended
(the “Act”), adopted a Resolution of Intention for the proposed formation of City of Chula Vista
Community Facilities District No. 18M (Otay Ranch Village 3) (“CFD No. 16-I”).
WHEREAS, this Community Facilities District Report (“Report”) is being provided to the City
Council and generally contains the following:
1. A brief description of Community Facilities District No. 18M (Otay Ranch Village 3) of
the City of Chula Vista (“CFD NO. 18M”);
2. A brief description of the public services (the “Services”) which are required to
adequately to meet the needs of CFD No. 18M.
3. A brief description of the Boundaries of CFD 18M; and
4. An estimate of the cost providing such Services, as defined below, including all costs
associated with formation of the District, determination of the amount of any special
taxes, collection of any special taxes, or costs otherwise incurred in order to carry out
the authorized purposes of the City with respect to the District, and any other
incidental expenses to be paid through the proposed financing.
For particulars, reference is made to the Resolution of Intention, Resolution No. 2016-199 as
previously approved. All capitalized terms not defined herein are defined in the Rate and Method
of Apportionment of Special Tax section (Exhibit D) of this report.
NOW THEREFORE Willdan Financial Services, the appointed responsible firm directed to prepare
the Report, pursuant to the provisions of the Code, does hereby submit the following:
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II. General Description & Boundaries of CFD No. 18M
The proposed boundaries of CFD 18M encompass parcels located within Otay Ranch in the City
of Chula Vista, San Diego. Otay Ranch Village 3 is approximately four hundred and twenty-three
(423) acres located just south and east of the Otay Landfill and Village Two, west of the existing
light industrial uses in the City of Chula Vista and north of the Otay River Valley. The project is
proposed for approximately 702 single-family units and 563 multi-family units, 7.9 acres of office
use, and 16.8 acres of industrial use.
A description of the exterior boundaries of the territory proposed for inclusion in CFD No. 18M,
including properties and parcels of land proposed t o be subject to the levy of a Special Tax by
CFD No. 18M, is shown on the boundary map designated as “PROPOSED BOUNDARIES OF
COMMUNITY FACILITIES DISTRICT NO. 18M (OTAY RANCH VILLAGE 3)”, which is on file in the
office of the Clerk of the City Council of the City of Chula Vista, and which was recorded with the
County Recorder of the County of San Diego on October 11, 2016 in Book 46 of Maps of
Assessment and Community Facilities Districts at Page 5, as Instrument Number 2016-7000436.
A copy of the map is attached hereto as Exhibit A and hereby incorporated by reference.
The Boundary Map also depicts an area designated as the Future Excluded Area which is intended
to be excluded from CFD 18M upon recordation of final parcel maps for the area. This area is
currently included within the boundaries of CFD 18M because the Future Excluded Area does not
currently exist as a separate legal parcel, but is a part of the legal parcel identified on the
Boundary Map as Assessor’s Parcel No. 644-060-27-00. When this area becomes a separate legal
parcel, action will be taken to remove it from the CFD.
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III. Future Annexation Area
On October 4, 2016 the Resolution of Intention of the City Council of the City of Chula Vista to
allow for future annexation of territory to City of Chula Vista Community Facilities District No.
18M (Otay Ranch Village 3) was adopted. Resolution No. 2016-199 gave the City the ability and
option to annex future development projects into CFD No. 18M, and to do so in an expedited
manner.
The Future Annexation Area was established so that property adjacent to CFD 18M, that may be
developed at some point in the future, and which may include maintenance and service
requirements substantially similar to those in the existing CFD 18M , could be annexed to CFD
18M. This would occur if it is determined that the existing tax rate structure for CFD 18M can be
fairly and equitably applied to this area, and that it will generate sufficient revenue to fund the
required maintenance and services for this area.
A description of the exterior boundaries of the future annexation area is as shown on the
boundary map designated as “FUTURE ANNEXATION AREA OF COMMUNITY FACILITIES DISTRICT
NO. 18M (OTAY RANCH VILLAGE 3)”, which is on file in the office of the Clerk of the City Council
of the City of Chula Vista, and was recorded with the County Recorder of the County of San Diego
on October 11, 2016 in Book 46 of Maps of Assessment and Community Facilities Districts at
page 6, as Instrument Number 2016-7000437. A copy of the map is attached hereto as Exhibit B
and hereby incorporated by reference.
Future developments may be annexed into CFD No. 18M upon the petition by, and the approval
of, the owner or owners of any such parcel(s) at the time annexation is requested. A public
hearing is required to count the votes and annex the parcel(s) into the pre-established district.
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IV. Description of Services
The district will fund the maintenance and replacement of (a) landscaping, including, but not
limited to, trees, slopes, parkways and medians; (b) facilities that are directly related to storm
water quality control; (c) walls and fencing; and (d) trails.
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V. Cost Estimates
The estimated annual budget for CFD 18M is approximately $1,591,750 which is shown in Exhibit
C. This includes $1,284,555 for: landscape maintenance, including irrigation; inspection,
operation and maintenance of storm water quality facilities; maintenance of walls, fencing, and
trails, including graffiti abatement; and $269,676 that is set aside for the replacement of the
amenities and facilities as they reach the end of their useful life.
In addition, the budget includes $37,519.60 for CFD administration (preparing reports, levying
and collecting taxes, public assistance, etc.) by City Staff, or their designee.
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VI. Rate and Method of Apportionment of Special Tax
A. Overview
All property located within CFD No. 18M, unless exempted by law or specifically by the Rate and
Method of Apportionment (RMA), a copy of which is attached hereto as Exhibit D and hereby
incorporated by reference, shall be taxed for the purpose of providing necessary services to
property within CFD No. 18M. Pursuant to Section 53325.3 of the Act, the tax imposed is a special
tax and not a special assessment. Therefore, there is no requirement that the tax be apportioned
on the basis of special benefit to any property. The special tax “may be based on a benefit
received by parcels of real property, the cost of making facilities or authorized services available
to each parcel, or some other reasonable basis as determined by the legislative body”. The special
tax may not be apportioned on an ad valorem basis pursuant to Article XIIIA of the California
Constitution.
B. General Explanation of Special Tax Apportionment
When a community facilities district is formed, a special tax may be levied on each parcel of
taxable property within the CFD to pay for authorized services or to repay bonded indebtedness
or other related expenses incurred by the CFD. When more than one type of land use is present
within a community facilities district, various criteria may be considered when apportioning a
special tax. Generally, criteria based on building square footage, lot size, density, service
population, and/or land use are selected to establish categories to differentiate between parcels
of property. These categories are a direct result of the landowner/developer's projected product
mix, and are reflective of the proposed land use types within that community facilities district.
The major assumption inherent in the Special Tax rates set forth in the RMA is that the level of
benefit received from the proposed public services is a function of land use and/or size of
building.
C. Structure of the Rate and Method of Apportionment
The RMA for CFD No. 18M is made up of a definitions section, a description of the tax rates, and
the outline of the procedural steps required for calculating and apportioning the special tax.
In general, the first step is to classify each parcel as either Taxable or Exempt. The second step is
to then determine the applicable tax rate to be applied to each parcel d etermined to be Taxable,
based on its development status and land use type. The third step is to apply the applicable
Special Tax rates to developed properties until the Special Tax Requirement is satisfied. The
following diagram illustrates the general process of determining the applicable rate to be applied
to each parcel within CFD No. 18M:
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All Developed Single Family Residential (SFR) properties, Multi-Family Residential (MFR)
properties, and Non-Residential properties within the boundaries of CFD No. 18M are subject to
the Special Tax as described in Exhibit D - Rate and Method of Apportionment of Special Tax.
The Special Tax levied to pay for services will not exceed the Maximum Special Tax identified in
Exhibit D - Rate and Method of Apportionment, and as summarized below in the Maximum
Special Tax Rates section.
Developed Property Taxable
Property
Taxable or
Exempt
Developed
or
Undeveloped
SFR,
MRF
or NR
No Tax Rate
Applied to
Exempt Parcels
No Tax Rate
Applied to
Undeveloped
Parcels
Special Tax
MFR or NR
Rate Applied
Special Tax
SFR Rate
Applied
Unclassified
Parcels
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D. Maximum Special Tax Rates
The Maximum Special Tax Rates that may be levied on any parcel within the boundaries of CFD
18M, beginning with the Fiscal Year 2017-2018 are shown below:
Developed Special Tax Rates
The following rates are shown as a per unit basis, and are subject to an annual escalation as
described in the RMA.
Land Use Class
Maximum
Special Tax
Basis for
Labor
Maximum
Special Tax
Basis for
Water
Maximum
Special Tax Basis
for Asset
Replacement
Maximum
Special Tax Basis
Single Family
Detached Property $ 912.16 $341.42 255.70 1,509.28
Single Family
Attached Property 729.73 $273.14 204.56 1,207.43
Multi-Family
Property 72.97 $27.31 20.46 120.74
Non-Residential
Property 3,648.64 $1,365.68 1,022.82 6,037.13
Undeveloped Special Tax Rates
No tax will be levied on undeveloped property.
The Rate and Method of Apportionment (RMA) for CFD 18M provides sufficient information to
allow a property owner within CFD 18M to estimate the Maximum Special Tax for his or her
property. It also includes method of prepayment in full or prepayment in part and the procedure
for prepayments.
For particulars on the rate and method of apportionment, r eference is made to Exhibit D of this
report.
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EXHIBIT A
Boundary Map
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EXHIBIT B
Future Annexation Area
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EXHIBIT C
Preliminary CFD Budget
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EXHIBIT D
Rate and Method of Apportionment
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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 condomini um 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 collect 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.
“Assessor’s Parcel” or “Parcel” means a lot or parcel shown in an Assessor’s Parcel Map with an
assigned assessor’s parcel number.
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels
by assessor’s parcel number.
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“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.
“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 classified 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 1st preceding the Fiscal Year in which the Special Tax is being levied.
“Dwelling Unit” or “DU” means each separate residential dwelling unit that co mprises 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 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.
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“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 Property” 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 1st 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 Property” 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 Property” 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
Dwelling Unit(s), including, but not limited to, duplexes, triplexes, townhomes, and
condominiums.
“Single Family Detached Property” means all Assessor’s Parcels of Residential Property
consisting of a single Dwelling Unit.
“Special 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 Requirement” 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
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Administrative Expenses associated with the Special Tax, (iii) establish or replenish the Reserve
Fund, (iv) pay incidental expenses related to the Services as authorized p ursuant 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 Amount”) 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 Property” 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 classified 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 Parcel.
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.
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TABLE 1
Maximum Special Tax Basis for Developed Property
Community Facilities District No. 18M
(Fiscal Year 2016-17)
Land Use Class
Maximum
Special Tax
Basis for
Labor
Maximum
Special Tax
Basis for
Water
Maximum
Special Tax Basis
for Asset
Replacement
Maximum
Special Tax Basis
Single Family
Detached Property $ 912.16 $341.42 255.70 1,509.28
Single Family
Attached Property 729.73 $273.14 204.56 1,207.43
Multi-Family
Property 72.97 $27.31 20.46 120.74
Non-Residential
Property 3,648.64 $1,365.68 1,022.82 6,037.13
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
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.
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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 will the Speci al 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 C FD
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 Administrator 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 shall 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,
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(ii) Require the CFD to reimburse the landowner for the amount of the overpayment to the
extent of available CFD funds, or
(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 ad valorem 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.
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