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HomeMy WebLinkAboutReso 2024-075 RESOLUTION NO. 2024-075 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 16M (EL DORADO RIDGE) OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, AND THE BOUNDARIES THEREOF WHEREAS, the CITY COUNCIL (the “City Council”) of the CITY OF CHULA VISTA (the “City”) has heretofore adopted Resolution No. 2024-043 (the “Resolution of Intention”) stating that a community facilities district to be known as “Community Facilities District No. 16M (El Dorado Ridge), City of Chula Vista, County of San Diego, State of California” (“CFD No. 16M”), is proposed to be established pursuant to Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the “Mello-Roos Community Facilities Act of 1982” (the “Act”), and fixing the time and place for a public hearing on the formation of CFD No. 16M; and WHEREAS, CFD No. 16M is proposed to be established for the purpose of financing certain public services (the “Services”) of which are necessary to meet increased demands placed upon the City as a result of the development of said real property; and WHEREAS, notice was published and mailed to the owner of all of the property in CFD No. 16M relative to the intention of the City Council to establish CFD No. 16M, the levy of special taxes therein, and of the time and place of the public hearing; and WHEREAS, following adoption of the Resolution of Intention on March 19, 2024, the City has elected to change the month used to calculate the consumer price index year over year change from the month of May to January to allow sufficient time for the index to be released and the annual special taxes to be calculated to meet the County of San Diego’s deadline for submitting the annual enrollment of such special taxes. Said change has been applied to the rate and method of apportionment attached to this Resolution (as defined below); and WHEREAS, on May 7, 2024, the City Council conducted the public hearing as required by law relative to the formation of CFD No. 16M, the levy of special taxes therein, and the provision of public services therein; and WHEREAS, prior to the commencement of the public hearing there was filed with the City Council a report (the “Report”) containing a description and an estimate of the fair and reasonable costs of providing such public services, as required by Section 53321.5 of the Act required to adequately meet the needs of CFD No. 16M; and WHEREAS, at the public hearing all persons desiring to be heard on all matters pertaining to the formation of CFD No. 16M, the levy of the special taxes therein, the provision of public services therein was heard, and a full and fair hearing was held; and DocuSign Envelope ID: FE4EB350-49B5-4EB4-A47B-068C8992609B Resolution No. 2024-075 Page No. 2 WHEREAS, at the public hearing, evidence was presented to the City Council on the matters before it, and the City Council, at the conclusion of the hearing, was fully advised as to all matters relating to the formation of CFD No. 16M, the levy of the special taxes therein, and the provision of public services therein; and WHEREAS, the City Council may, therefore, proceed to establish CFD No. 16M; and WHEREAS, the City Clerk has advised the City Council that they have received a statement from the Registrar of Voters of the County of San Diego that there are no persons registered to vote in the territory of CFD No. 16M. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that the City Council finds as follows: (a) All of the preceding recitals are true and correct and are incorporated herein by this reference; (b) On May 7, 2024, pursuant to notice thereof duly given as provided by law, the City Council conducted a public hearing with respect to the formation of CFD No. 16M, and the annual levying of specified special taxes on the taxable property within CFD No. 16M to pay for the ongoing maintenance of certain services, and other obligations which are described herein; (c) The boundary map of CFD No. 16M was recorded on March 28, 2024, pursuant to Sections 3111 and 3113 of the California Streets and Highways Code, at page 88 in Book 51 of Maps of Assessment and Community Facilities Districts, and as Instrument No. 2024- 7000141 in the official records of the County of San Diego; (d) All prior proceedings with respect to the formation of CFD No. 16M prior to and during the public hearing with respect to the formation of CFD No. 16M which was conducted by the City Council on May 7, 2024, were valid and in conformity with the requirements of the Act; (e) No written protests were received, at or prior to the time of the public hearing, against the formation of CFD No. 16M, or the levying of the special taxes, or the furnishing of specified types of public services, and the special taxes and public services have, therefore, not been eliminated by majority protest pursuant to Section 53324 of the Act; (f) The City Council is, therefore, authorized to adopt a resolution of formation pursuant to Section 53325.1 of the Act for the formation of Community Facilities District No. 16M (El Dorado Ridge), City of Chula Vista, County of San Diego, State of California, and CFD No. 16M should be established; and (g) Twelve (12) persons have not been registered to vote within the territ ory of CFD No. 16M for each of the 90 days preceding the close of the public hearing on May 7, 2024, and pursuant to Section 53326 of the Act, the vote in the Special Election (defined below) provided for herein shall, therefore, be by the landowners of CFD No. 16M whose property would be subject to the special taxes if they were levied at the time of the elections, and each landowner shall have one vote for each acre, or portion thereof, which he or she owns within CFD No. 16M which would be subject to the proposed special taxes if they were levied at the time of the elections. DocuSign Envelope ID: FE4EB350-49B5-4EB4-A47B-068C8992609B Resolution No.2024-075 Page No. 3 BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the modifications to the rate and method of apportionment of the Special Taxes to be levied on parcels of taxable property in CFD No. 16M (“Rate and Method”), as set forth in Exhibit A hereto, are hereby approved. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that Community Facilities District No. 16M (El Dorado Ridge), City of Chula Vista, County of San Diego, State of California, is hereby established. The boundaries of CFD No. 16M are set forth and shown on the map entitled “Proposed Boundaries of Community Facilities District No. 16-M (El Dorado Ridge), City of Chula Vista, County of San Diego, State of California,” which is on file with the City Clerk, and those boundaries are hereby established. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the types of Services and Incidental Expenses of CFD No. 16M are as follows: (a) A general description of certain public services (the “Services) proposed to be financed by CFD No. 16M is set forth in Exhibit B attached hereto and incorporated herein by this reference. (b) The incidental expenses, as such term is defined in Section 53317(c) of the Act, which will be incurred include, but are not limited to: (i) the cost of planning and designing such services; (ii) all costs associated with the formation of CFD No. 16M, administration of and the determination of the amount of and collection of the special taxes, and the payment of the special taxes, and costs otherwise incurred in order to carry out the authorized purposes of CFD No. 16M; (iii) any other expenses incidental to providing the Services; (iv) accumulation and funding of reserves for capital replacement costs; (v) a sinking fund for Services that could not otherwise be funded in a single fiscal year; and (vi) any other expense required in order to carry out the authorized purposes of CFD No. 16M (the “Incidental Expenses”). BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that except where funds are otherwise available, a special tax sufficient to finance the Services and related Incidental Expenses (the “Special Taxes”), secured by the recordation of a continuing lien against all taxable or nonexempt property in CFD No. 16M, shall be annually levied within CFD No. 16M. Under no circumstances will the Special Tax levied in any fiscal year against any parcel used for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within CFD No. 16M by more than 10 percent (10%) above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults. A parcel shall be considered “used for private residential purposes” not later than the date on which an occupancy permit or the equivalent for private residential use is issued and for such parcel. For further particulars as to the Rate and Method, reference is made to the attached and incorporated Exhibit A, which sets forth in sufficient detail the rate and method of apportionment of the Special Taxes to allow each l andowner or resident within CFD No. 16M to clearly estimate the maximum amount that such person will have to pay. DocuSign Envelope ID: FE4EB350-49B5-4EB4-A47B-068C8992609B Resolution No. 2024-075 Page No. 4 There are no conditions under which the obligation to pay the Special Tax may be prepaid and permanently satisfied as set forth in the Rate and Method. Pursuant to Section 53340 of the Act, said Special Taxes shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 16M may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent assessor’s parcels as permitted by the Act. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highwa ys Code, a continuing lien to secure each levy of the Special Taxes shall attach to all non-exempt real property in CFD No. 16M, and that lien shall continue in force and effect in perpetuity. The special tax obligation shall not be prepaid and shall continue in perpetuity or until the City ceases to provide the Services and the lien cancelled in accordance with the law. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that , pursuant to Section 53340 of the Act, and except as provided in Section 53317.3 of the Act, properties of entities of the state, federal, and local governments shall be exempt from the levy of Special Taxes. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the Report is hereby approved and is made a part of the record of the public hearing regarding the formation of CFD No. 16M and is ordered to be kept on file with the City Clerk as part of the transcript of these proceedings. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that , pursuant to Section 53314.9 of the Act, the City Council proposes to accept advances of funds or work-in-kind from private persons or private entities and to provide, by resolution, for the use of those funds or that work-in-kind for any authorized purpose, including but not limited to, paying any costs incurred by the City in creating CFD No. 16M, and to enter into an agreement, by resolution, with the person or entity advancing the funds or work-in-kind to repay funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work-in-kind, as determined by the City Council. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vist a, that, except as otherwise provided in this section, the special election on the proposition identified below shall be conducted by the City Clerk in accordance with the provisions of the California Elections Code governing mail ballot elections of cities, insofar as they may be applicable. The voting procedures to be followed in conducting the special election on the proposition with respect to the levy of special taxes on parcels of taxable property within CFD No. 16M to pay the ongoing costs of providing the Services and establishing an initial appropriations limit for CFD No. 16M in the amount of $250,000 (the “Special Election”) shall be as follows: DocuSign Envelope ID: FE4EB350-49B5-4EB4-A47B-068C8992609B Resolution No.2024-075 Page No. 5 (a) The Special Election shall be held on the earliest date, following the adoption by the City Council of this Resolution and a resolution pursuant to Section 53326 of the Act submitting to the qualified electors of CFD No. 16M the propositions with respect to (i) the levy of Special Taxes to pay the ongoing costs of providing the Services and (ii) establishing an appropriations limit for the community facilities district to the qualified electors of the community facilities district, upon which such elections can be held pursuant to Section 53326 which may be selected by the City Council, or such earlier date as the owners of land within CFD No. 16M and the City Clerk agree and concur is acceptable. (b) Pursuant to Section 53326 of the Act, the Special Election may be held earlier than 90 days following the close of the public hearing if the qualified electors of CFD No. 16M waive the time limits for conducting the elections set forth in said Section 53326 by unanimous written consent and the City Clerk concurs in such earlier election date as shall be consented to by the qualified electors. (c) Pursuant to Section 53326 of the Act, ballots for the Special Election shall be distributed to the qualified electors by the City Clerk by mail with return postage prepaid, or by personal service. (d) Pursuant to applicable sections of the California Elections Code governing the conduct of mail ballot elections of cities, and specifically Division 4 (commencing with Section 4000) of the California Elections Code with respect to elections conducted by mail, the City Clerk shall mail or deliver to each qualified elector an official ballot in a form specified by the City Council in the resolutions calling the Special Election, and shall also mail or deliver to all such qualified electors a ballot pamphlet and instructions to voter, including a sample ballot identical in form to the official ballot but identified as a sample ballot, a statement pursuant to Section 9401 of that Code, an impartial analysis by the City Attorney pursuant to Section 9280 of that Code with respect to the ballot propositions contained in the official ballot, arguments and rebuttals, if any, pursuant to Sections 9281 to 9287, inclusive, and 9295 of that Code, a return identification envelope with prepaid postage thereon addressed to the City Clerk for the return of voted official ballots, and a copy of the Resolution of Formation provided, however, that such statement, analysis and arguments may be waived with the unanimous consent of all the landowners who are qualified electors and shall be so stated in the resolution adopted by the City Council calling the Special Election. Such statement, impartial analysis, and arguments, if any, shall be prepared by the City Attorney. (e) The official ballot to be mailed or delivered by the City Clerk or her designee to each landowner-voter shall have printed or typed thereon the name of the landowner-voter and the number of votes to be voted by the landowner-voter and shall have appended to it a certification to be signed by the person voting the official ballot which shall certify that the person signing the certification is the person who voted the official ballot, and if the landowner- voter is other than a natural person, that he or she is an officer of or other person affiliated with the landowner-voter entitled to vote such official ballot, that he or she has been authori zed to vote such official ballot on behalf of the landowner-voter, that in voting such official ballot it was his or her intent, as well as the intent of the landowner-voter, to vote all votes to which the landowner-voter is entitled based on its land ownership on the propositions set forth in the official ballot as marked thereon in the voting square opposite each such proposition, and further certifying as to the acreage of the landowner-voter’s land ownership within CFD No. 16M. DocuSign Envelope ID: FE4EB350-49B5-4EB4-A47B-068C8992609B Resolution No. 2024-075 Page No. 6 (f) The return identification envelope mailed or delivered by the City Clerk to each landowner-voter shall have printed or typed thereon the following: (i) the name of the landowner; (ii) the address of the landowner; (iii) a declaration under penalty of perjury stating that the voter is the landowner or the authorized representative of the landowner entitled to vote the enclosed ballot and is the person whose name appears on the identification envelope; (iv) the printed name and signature of the voter; (v) the address of the voter; (vi) the date of signing and place of execution of the declaration; and (vii) a notice that the envelope contains an official ballot and is to be opened only by the City Clerk. (g) The instruction to voter form to be mailed or delivered by the City Clerk to the landowner-voters shall inform them that the official ballots shall be returned to the City Clerk properly voted as provided thereon and with the certification appended thereto properly completed and signed in the sealed return identification envelope with the certification thereon completed and signed and all other information to be inserted thereon properly inserted by the hour on the date of the election which is specified by the City Council in the resolution calling the Special Election for the receipt of voted ballots; provided that if all qualified voters have voted, the elections shall be closed with the concurrence of the City Clerk. (h) Upon receipt of the return identification envelopes which are returned prior to the voting deadline on the date of the elections, the City Clerk shall canvass the votes cast in the Special Election and shall file a statement with the City Council as to the results of such canvass and the election on each proposition set forth in the official ballot. The procedures set forth in this section for conducting the special election, if they are held, may be modified as the City Council may determine to be necessary or desirable by a resolution subsequently adopted by the City Council. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that if any provision of this Resolution or the application thereof to any person or circumstance is held invalid by a court of competent jurisdiction, such invalidity shall not affect other provisions or applications, and to this end, the provisions of this Resolution are declared to be severable. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that this Resolution shall become effective immediately. [SIGNATURES ON THE FOLLOWING PAGE] DocuSign Envelope ID: FE4EB350-49B5-4EB4-A47B-068C8992609B Resolution No.2024-075 Page No. 7 Presented by Approved as to form by Laura C. Black, AICP Marco A. Verdugo Director of Development Services City Attorney PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 7th day of May 2024 by the following vote: AYES: Councilmembers: Chavez, Gonzalez, Morineau, Preciado, and McCann NAYS: Councilmembers: None ABSENT: Councilmembers: None John McCann, 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 ce rtify that the foregoing Resolution No. 2024-075 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 7th day of May 2024. Executed this 7th day of May 2024. Kerry K. Bigelow, MMC, City Clerk DocuSign Envelope ID: FE4EB350-49B5-4EB4-A47B-068C8992609B EXHIBIT A RATE AND METHOD OF APPORTIONMENT FOR CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 16M (EL DORADO RIDGE) A Special Tax, as hereinafter defined, shall be levied and collected in City of Chula Vista Community Facilities District No. 16M (El Dorado Ridge) (“CFD No. 16M”) each Fiscal Year commencing in Fiscal Year 2023/24, in an amount determined by the application of the procedures below. All Taxable Property, as hereinafter defined, 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 meaning: “Accessory Dwelling Unit” or “ADU” means all Assessor’s Parcels of Developed Property for which a building permit(s) has been issued for an “Accessory Dwelling Unit” as defined in California Government Code Section 65852.2(j)(1), as may be amended from time to time, which is accessory to a primary Dwelling Unit of Residential Property. The ADU may be located on the same Assessor’s Parcel as the primary Dwelling Unit of Residential Property or on a separate Assessor’s Parcel. For purposes of clarification, where an ADU and primary Dwelling Unit of Residential Property are on the same Assessor’s Parcel, the ADU located on such Assessor’s Parcel is considered a separate Dwelling Unit from the primary Dwelling Unit on such Assessor’s Parcel for purposes of the Special Tax. Should an Assessor’s Parcel contain only an ADU, such Assessor’s Parcel will be taxed as an ADU Dwelling Unit only. “Acre or Acreage” means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map or in the Assessor’s Data for each Assessor’s Parcel. In the event the Assessor’s Parcel Map or Assessor’s Data shows no Acreage, the Acreage for any Assessor’s Parcel shall be determined by the CFD Administrator based upon the applicable final map, parcel map, condominium plan, or other recorded County parcel map. If the preceding maps are not available, the Acreage of an Assessor’s Parcel may be determined utilizing GIS. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State. “Administrative Expenses” means (i) all costs associated with the formation of CFD No. 16M, the determination of the amount of and collection of Special Taxes, including any charges imposed by the County Auditor’s Office, the payment of Special Taxes and the costs of commencing and pursuing to completion any action arising from delinquent Special Taxes, the costs of the City or designee in complying with all regulatory reporting requirements, and costs otherwise incurred in order to carry out the authorized purposes of CFD No. 16M, including but not limited to consultant and attorney’s fees; (ii) accumulation and funding of reserves for capital replacement costs; (iii) a sinking fund for the Annual Services that could not otherwise be funded in a single Fiscal Year; and (iv) any other expense required in order to carry out the authorized purposes of CFD No. 16M. “Annual Services” means the services authorized to be funded by CFD No. 16M, as described in Exhibit “A”, attached hereto. DocuSign Envelope ID: FE4EB350-49B5-4EB4-A47B-068C8992609B Resolution No. 2024-075 Page No. 2 “Annual Services Costs” means the respective amounts determined by the CFD Administrator required to fund the Annual Services for the applicable yearly period. “Annual Special Tax Requirement” means that amount with respect to CFD No. 16M determined by the City Council or designee as required in any Fiscal Year to pay: (1) the Administrative Expenses, (2) the Annual Services Costs, (3) any amount required to establish or replenish any reserve or replacement fund established in connection with CFD No. 16M, and (4) any reasonably anticipated delinquent Special Tax based on the delinquency rate for any Special Tax levied in the previous Fiscal Year. “Assessor’s Data” means Assessor’s Parcel Number, Dwelling Units, Acreage, or other information contained in the records of the County Assessor for each Assessor’s Parcel. “Assessor’s Parcel” or “Parcel” means a lot or parcel shown in an Assessor’s Parcel Map and/or Assessor’s Data 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. “Assessor’s Parcel Number” means, with respect to an Assessor’s Parcel, that number assigned to such Assessor’s Parcel by the County Assessor for purposes of identification. “City means the City of Chula Vista, California. “City Council” means the City Council of the City, acting as the legislative body of CFD No. 16M. “CFD Administrator” means an official of the City, or designee thereof, responsible for determining the Annual Special Tax Requirement and providing for the levy and collection of the Special Taxes. “CFD No. 16M” means the City of Chula Vista Community Facilities District No. 16M (El Dorado Ridge). “County” means the County of San Diego. “County Assessor” means the County Assessor of the County. “Developed Property” means, in any Fiscal Year, all Taxable Property in CFD No. 16M for which a building permit for new construction was issued by the City prior to June 30 of the preceding Fiscal Year. “Dwelling Unit” means a single unit providing complete, independent living facilities for one or more persons, including permanent provisions for living, sleeping, eating, cooking and sanitation. The number of Dwelling Units assigned to each Assessor’s Parcel may be determined by (i) referencing Assessor’s Data, (ii) site surveys and physical unit counts, (iii) building permit data, and/or (iv) other research by the CFD Administrator. “Exempt Property” means all Assessors’ Parcels within the boundary of CFD No. 16M which are exempt from the Special Tax pursuant to Section E. "Final Subdivision Map" means a subdivision of property created by recordation of a final subdivision map, parcel map or lot line adjustment, approved by the City pursuant to the DocuSign Envelope ID: FE4EB350-49B5-4EB4-A47B-068C8992609B Resolution No.2024-075 Page No. 3 Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4120, that creates individual lots for which residential building permits may be issued without further subdivision of such property. “Fiscal Year” means the period starting July 1 and ending on the following June 30. “GIS” means a geographic information system. “Initiative #1935” means initiative constitutional amendment 1935 which is eligible for the November 5, 2024, general election ballot and will be certified as qualified unless withdrawn by the proponent prior to June 27, 2024, or otherwise removed by a competent court with jurisdiction over such matters. “Maximum Special Tax” means the maximum Special Tax authorized to fund the Annual Special Tax Requirement in any Fiscal Year that may apply to Taxable Property as described in Section C. “Open Space Property” means property within the boundaries of CFD No. 16M which (i) has been designated with specific boundaries and Acreage on a final subdivision map as open space, (ii) is classified by the County Assessor as open space, (iii) has been irrevocably offered for dedication as open space to the federal government, the State, the County, the City, or any other public agency, or (iv) is encumbered by an easement or other restriction required by the City limiting the use of such property to open space. “Property Owner’s Association” means any property owner’s association. As used in this definition, a Property Owner’s Association includes any home -owner’s association, condominium owner’s association, master or sub-association or non-residential owner’s association. “Property Owner’s Association Property” means any property within the boundaries of CFD No. 16M which is (a) owned by a Property Owner’s Association or (b) designated with specific boundaries and acreage on a final subdivision map as property owner association property. “Proportionately” means for Taxable Property that the ratio of the Special Tax levy to the Maximum Annual Special Tax is equal for all Assessors’ Parcels of Taxable Property levied within each property land use classification within CFD No. 16M. “Public Property” means any property within the boundaries of CFD No. 16M which (i) is owned by a public agency, (ii) has been irrevocably offered for dedication to a public agen cy, or (iii) is designated with specific boundaries and Acreage on a final subdivision map as property which will be owned by a public agency. For purposes of this definition, a public agency includes the federal government, the State, the County, the City, school districts, or any other public agency. “Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit(s) has been issued for a residential structure containing one or more Dwelling Units, exclusive of ADUs. “Special Tax” means the amount levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Annual Special Tax Requirement. “State” means the State of California. “Taxable Property” means all of the Assessor’s Parcels within the boundaries of CFD No. 16M DocuSign Envelope ID: FE4EB350-49B5-4EB4-A47B-068C8992609B Resolution No. 2024-075 Page No. 4 that are not exempt from the Special Tax pursuant to law or Section E below. “Undeveloped Property” means all of the Assessor’s Parcels within the boundaries of CFD No. 16M that are not classified as Developed Property, Open Space Property, Property Owner’s Association Property, or Public Property. “Welfare Exempt Property” means, in any Fiscal Year, all Parcels within the boundaries of CFD No. 16M that (a) have been granted a welfare exemption by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code indicated in the Assessor’s Data finalized as of January 1 of the previous Fiscal Year, and (b) are exempt from the Special Tax pursuant to Section 53340(c) of the Act. B. DETERMINATION OF TAXABLE PARCELS Each Fiscal Year, the CFD Administrator shall determine the valid Assessor’s Parcel Numbers for all Taxable Property within CFD No. 16M. If any Assessor’s Parcel Numbers are no longer valid, the CFD Administrator shall determine the new Assessor’s Parcel Number or Numbers in effect for the then-current Fiscal Year. To the extent a Parcel or Parcels of Taxable Property are subdivided, consolidated, or otherwise reconfigured, the Maximum Special Tax shall be assigned to the new Assessor’s Parcels Numbers pursuant to Section C. The CFD Administrator shall also determine: (i) which Parcels are Taxable Property; (iii) the number of Dwelling Units or Acres each Parcel contains; (iv) the property type, i.e., Residential Property, Accessory Dwelling Unit or Undeveloped Property; and (v) the Annual Special Tax Requirement for the Fiscal Year. C. MAXIMUM ANNUAL SPECIAL TAX RATES The Maximum Special Taxes for each Assessor’s Parcel of Taxable Property shall be assigned below: 1. Maximum Special Taxes The Maximum Special Tax for each Assessor’s Parcel of Taxable Property shall be assigned according to Table 1 below: TABLE 1 MAXIMUM SPECIAL TAX RATES FISCAL YEAR 2023/24* Description Maximum Special Tax Per Residential Property $787.00 Dwelling Unit Accessory Dwelling Unit $0.00 Unit Undeveloped Property $13,262.00 Acre *On July 1 of each Fiscal Year, commencing on July 1, 2024, the Maximum Special Tax rates shall be increased by a factor equal to the greater of the positive percentage change in the San Diego-Carlsbad, CA, CPI-U for the month of January, or 0%, provided the Maximum Special Tax rates shall never be less than the amounts shown in Table 1. DocuSign Envelope ID: FE4EB350-49B5-4EB4-A47B-068C8992609B Resolution No.2024-075 Page No. 5 In some instances, an Assessor’s Parcel of Developed Property may include more than one land use category. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax for all Dwelling Units of each property type on that Assessor’s Parcel. 2. Assignment of Assessor’s Parcel(s) to Property Land Use Category When an Assessor’s Parcel changes from being classified as Undeveloped Property to another land use category and is considered Developed Property, that assignment shall not change due to future changes in land use. 3. Assignment of Maximum Special Tax to Newly Created Assessor’s Parcel(s) After a Final Subdivision Map has been recorded, if there are changes to the overall planned development within CFD No. 16M, the process for assigning the Maximum Special Tax to each Assessor’s Parcel expected to be classified as Residential Property is as follows: Step 1: Determine the then-current total expected Maximum Special Tax for CFD No. 16M, by referencing Table 2. Step 2: Identify the Assessor’s Parcel(s) of Taxable Property expected to be classified as Residential Property and assign the Maximum Special Tax to each Assessor’s Parcel of Taxable Property expected to be classified as Residential Property according to the then-current Maximum Special Tax Rates for such category. Sum the Maximum Special Tax assigned to each Assessor’s Parcel of Taxable Property expected to be classified as Residential Property. Step 3: Divide the total expected Maximum Special Tax in Step 1 by the total Maximum Special Tax assigned in Step 2 to arrive at a fraction. Step 4: Apportion the total expected Maximum Special Tax from Step 1 to each Assessor’s Parcel of Taxable Property expected to be classified as Residential Property by multiplying each Assessor’s Parcel fraction, determined in Step 3, by the then-current Maximum Special Tax Rates for Residential Property. Step 5: The Maximum Special Tax assigned to each Assessor’s Parcel of Taxable Property expected to be classified as Residential Property shall be the greater of the Maximum Special Tax assigned in Step 2 or the Maximum Special Tax calculated in Step 4. If there are no changes to the planned development within CFD No. 16M, the Maximum Special Tax shall be assigned according to Table 1. The planned development is provided in the table below: TABLE 2 PLANNED DEVELOPMENT AND TOTAL EXPECTED MAXIMUM SPECIAL TAX FISCAL YEAR 2023/24* Description Planned Development Expected Maximum Special Tax Residential Property 104 Dwelling Units $81,848.00 *On July 1 of each Fiscal Year, commencing on July 1, 2024, the total expected Maximum Special Tax shown in Table 2 shall be increased by a factor equal to the greater of the positive DocuSign Envelope ID: FE4EB350-49B5-4EB4-A47B-068C8992609B Resolution No. 2024-075 Page No. 6 percentage change in the San Diego-Carlsbad, CA, CPI-U for the month of January, or 0%, provided the total expected Maximum Special Tax rates shall never be less than the amounts shown in Table 2. Once created, if a newly created Assessor’s Parcel(s) of Taxable Property further changes or subdivides, the above steps shall be repeated to determine the Maximum Special Tax for the additional newly created Assessor’s Parcel(s) of Taxable Property created from the change or subdivision. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAXES All Taxable Property shall be subject to the Special Tax defined as follows. The Special Tax shall be levied each Fiscal Year by the CFD Administrator. The Annual Special Tax Requirement shall be apportioned to each Parcel within CFD No. 16M by the method shown below. 1. First: Determine the Annual Special Tax Requirement. 2. Second: Levy the Special Tax on each Parcel of Developed Property, Proportionately, up to the applicable Maximum Special Tax on Developed Property. 3. Third: If additional monies are needed to satisfy the Annual Special Tax Requirement after the second step has been completed, levy the Special Tax on each Parcel of Undeveloped Property, Proportionately, up to the applicable Maximum Special Tax for Undeveloped Property 4. Under no circumstances will the Special Taxes on any Assessor’s Parcel used for private residential purposes be increased by more than 10% as a consequence of delinquency or default by the owner of any other Assessor’s Parcel within CFD No. 16M. E. EXEMPTIONS Notwithstanding any other provision of this Rate and Method of Apportionment of Special Tax, no Special Tax shall be levied on Open Space Property, Property Owner’s Association Property, Assessor’s Parcels with public or utility easements making impractical their utilization for any use other than the purposes set forth in the easement, or Public Property, except as otherwise provided in Sections 53317.3, 53317.5 and 533401 of the Act. No Special Tax shall be levied on any Assessor’s Parcel in any Fiscal Year in which such Assessor’s Parcel is classified as Welfare Exempt Property. F. APPEAL OF SPECIAL TAX LEVY Any property owner may file a written appeal of the Special Tax with the CFD Administrator claiming that the amount or application of the Special Tax is not correct. The appeal must be filed not later than one calendar year after having paid the Special Tax that is disputed, and the appellant must be current in all payments of the Special Tax. In addition, during the term of the appeal process, all Special Tax levied must be paid on or before the payment date established when the levy was made. DocuSign Envelope ID: FE4EB350-49B5-4EB4-A47B-068C8992609B Resolution No.2024-075 Page No. 7 The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the property owner disagrees with the CFD Administrator’s decision relative to the appeal, the owner may then file a written appeal with the City Council whose subsequent decision shall be final and binding on all interested parties. If the decision of the CFD Administrator or subsequent decision by the City Council requires the Special Tax to be modified or changed in favor of the property owner, then an adjustment shall be made to credit the Special Tax in future years. 5. This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to filing any legal action by such owner. G. INTERPRETATIONS OF RATE AND METHOD OF APPORTIONMENT 6. The City reserves the right to make minor administrative and technical changes to this document that do not materially affect the rate and method of apportioning the Special Tax. In addition, the interpretation and application of any section of this document shall be at the City’s discretion. Interpretations may be made by the City Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment of Special Tax. H. MANNER AND DURATION OF SPECIAL TAX The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided that the City may directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner if needed to meet the financial obligations of CFD No. 16M, and may collect delinquent Special Taxes through available methods. A Special Tax shall be levied commencing in Fiscal Year 2023/24 to the extent necessary to satisfy the Annual Special Tax Requirement and shall be levied each Fiscal Year thereafter for as long as required to satisfy the Annual Special Tax Requirement. However, should Initiative #1935 be included as an initiative measure at election and subsequently be approved by voters, the duration of the Special Tax is 500 years. I. PREPAYMENT OF SPECIAL TAX The Special Tax may not be prepaid. DocuSign Envelope ID: FE4EB350-49B5-4EB4-A47B-068C8992609B Resolution No. 2024-075 Page No. 8 RATE AND METHOD OF APPORTIONMENT FOR CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 16M (EL DORADO RIDGE) Exhibit “A” Authorized Services Authorized services (“Services”) of Community Facilities District No. 16M (El Dorado Ridge) (“CFD No. 16M”) shall include, without limitation, the maintenance of onsite and offsite open space easements, including but not limited to, biotic surveys, habitat maintenance and restoration, and compliance reporting, all as more fully described in those certain Management and Monitoring Plans for the El Dorado Ridge Residential Development Project, in addition to incidental expenses incurred in connection with CFD No. 16M and such other services authorized by the Act. Such Services shall include, without limitation: (i) Onsite Open Space Easement – Annual biotic surveys, annual public services, annual habitat maintenance/restoration, annual reporting, annual contingency and administration costs; (II) Offsite Open Space Easement – Annual biotic surveys, habitat maintenance/restoration, reporting, and contingency and administration costs; (III) Administrative Expenses - (i) all costs associated with the formation of CFD No. 16M, the determination of the amount of and collection of Special Taxes, including any charges imposed by the County Auditor’s Office, the payment of Special Taxes and the costs of commencing and pursuing to completion any action arising from delinquent Special Ta xes, the costs of the City or designee in complying with all regulatory reporting requirements, and costs otherwise incurred in order to carry out the authorized purposes of CFD No. 16M, including but not limited to consultant and attorney’s fees; (ii) acc umulation and funding of reserves for capital replacement costs; (iii) a sinking fund for the Annual Services that could not otherwise be funded in a single Fiscal Year; and (iv) any other expense required in order to carry out the authorized purposes of CFD No. 16M. DocuSign Envelope ID: FE4EB350-49B5-4EB4-A47B-068C8992609B Resolution No.2024-075 Page No. 9 EXHIBIT B DESCRIPTION OF SERVICES The authorized services (“Services”) of Community Facilities District No. 16M (El Dorado Ridge) (“CFD No. 16M”) shall include, without limitation, the maintenance of onsite and offsite open space easements, including, but not limited to, biotic surveys, habitat maintenance and restoration, and compliance reporting, all as more fully described in those certain Management and Monitoring Plan for the El Dorado Ridge Residential Development Project, on file with the City Clerk, in addition to incidental expenses incurred in connection with CFD No. 16M and such other services authorized by the Act. Such Services shall include, without limitation: i. Onsite Open Space Easement – Annual biotic surveys, annual public services, annual habitat maintenance/restoration, annual reporting, annual contingency and administration costs; ii. Offsite Open Space Easement – Annual biotic surveys, habitat maintenance/restoration, reporting, and contingency and administration costs; iii. Administrative Expenses – (i) all costs associated with the formation of CFD No. 16M, the determination of the amount of and collection of Special Taxes, including any charges imposed by the County Auditor’s Office, the payment of the Special Taxes and the costs of commencing and pursuing to completion any action arising from delinquent Special Taxes, the costs of the City or designee in complying with all regulatory reporting requirements, and costs otherwise incurred in order to carry out the authorized purposes of CFD No. 16M, including but not limited to consultant and attorney’s fees; (ii) accumulation and funding of reserves for capital replacement costs; (iii) a sinking fund for the Services that could not otherwise be funded in a single Fiscal Year; and (iv) any other expenses required in order to carry out the authorized purposes of CFD No. 16M. DocuSign Envelope ID: FE4EB350-49B5-4EB4-A47B-068C8992609B