HomeMy WebLinkAboutReso 2024-108RESOLUTION NO. 2024-108
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA, CALIFORNIA, DECLARING ITS INTENTION
TO AUTHORIZE THE ANNEXATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE
MAINTENANCE DISTRICT) AND IMPROVEMENT AREA “C”
THERETO
(ANNEXATION NO. 13)
WHEREAS, the City Council of the City of Chula Vista (“City Council”), formed a Community
Facilities District and designated certain improvement areas therein pursuant to the terms and provisions
of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of
the Government Code of the State of California (the “Act”), 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 (the “Ordinance”) (the Act
and the Ordinance may be referred to collectively as the “Community Facilities District Law”). The
Community Facilities District has been designated as COMMUNITY FACILITIES DISTRICT NO. 97-
2 (PRESERVE MAINTENANCE DISTRICT) (the “District”) and the Improvement Areas were
designated as IMPROVEMENT AREA “A,” IMPROVEMENT AREA “B” and IMPROVEMENT
AREA “C” of such District; and
WHEREAS, the District was formed for the purpose of financing the monitoring, maintenance,
operation and management of public property required to be maintained as open space or habitat
preservation or both; and
WHEREAS, Improvement Area “C” was established to finance Preserve Operations and
Maintenance and Resource Monitoring, plus a pro-rata share of Administrative Expenses of the District
as such terms are defined in the rate and method of apportionment of special taxes (the “Improvement
Area “C” Rate and Method”) attached as Exhibit A hereto and incorporated herein by this reference; and
WHEREAS, certain territory identified as a part of Otay Ranch Village 8 East is proposed to be
annexed to the District and Improvement Area “C” thereto and such territory shall be known and
designated as COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE
DISTRICT), IMPROVEMENT AREA “C,” ANNEXATION NO. 13 (the “Territory”); and
WHEREAS, this legislative body now desires to proceed to adopt its Resolution of Intention to
annex the Territory to Improvement Area “C,” to describe the territory included within Improvement
Area “C” and the Territory proposed to be annexed thereto, to specify the services to be financed from
the proceeds of the levy of special taxes within the Territory, to set and specify the special taxes that
would be levied within the Territory to finance such services, and to set a time and place for a public
hearing relating to the annexation of the Territory to the Improvement Area “C,” and
WHEREAS, a map showing the Territory proposed to be annexed has been submitted, which
map has been previously approved, and a copy of the map shall be kept on file with the transcript of these
proceedings.
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that
it declares its intention to authorize the annexation of territory to Community Facilities District No. 97-2
(Preserve Maintenance District) and Improvement Area “C” thereto.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that the above
recitals are all true and correct and are incorporated herein by this reference.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that these
proceedings for annexation are initiated by this City Council pursuant to the authorization of the
Community Facilities District Law.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that it hereby
determines that the public convenience and necessity requires that the Territory be added to the District
and Improvement Area “C” thereto, and this City Council declares its intention to annex the Territory to
the District and Improvement Area “C” thereto.
A description of the boundaries and Territory proposed to be annexed is as follows:
All that Territory proposed to be annexed to the District and
Improvement Area “C” thereto, as such property is shown on a map
as previously approved by this legislative body, such map entitled
“Annexation Map No. 13 to Community Facilities District No. 97-
2 (Preserve Maintenance District), City Of Chula Vista, County Of
San Diego, State Of California” (the “Annexation Map”), a copy of
which is on file in the Office of the City Clerk and shall remain open
for public inspection.
A general description of the territory included in the District is hereinafter described as follows:
All that property and territory as originally included within and
previously annexed to the District and Improvement Area “C”
thereto, as such property is shown on maps of the original District
and territory previously annexed as approved by this City Council
and designated by the name of the original District and Annexation
Nos. 1 through 12. A copy of such maps are on file in the Office of
the City Clerk and have also been filed in the Office of the County
Recorder.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that the proposed
annexation shall be known and designated as COMMUNITY FACILITIES DISTRICT NO. 97-2
(PRESERVE MAINTENANCE DISTRICT), IMPROVEMENT AREA “C,” ANNEXATION NO. 13.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that the services
that are authorized to be financed by the District from the proceeds of special taxes levied within
Improvement Area “C” are certain services which are in addition to those provided in or required for the
territory within Improvement Area “C” and will not be replacing services already available. A general
description of such services to be financed by the District is as follows:
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The monitoring, maintenance, operation, and management of the
public property within boundaries of the Otay Ranch Preserve, as
such boundaries may be modified from time to time, required by the
Resource Management Plan to be maintained as open space or
habitat preservation land or both. Such property may be located
outside the boundaries of the District and outside the jurisdictional
boundaries of the City of Chula Vista. Such services shall not
include the maintenance, operation and/or management of any
property owned, maintained, operated and/or managed by the
federal and/or state government as open space, habitat maintenance
and/or for any other purpose.
A more complete description of such services may be found in Attachments A and B to the
Improvement Area “C” Rate and Method (defined in Section 6 below).
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that the District
shall finance all direct, administrative, and incidental annual costs and expenses necessary to provide
such monitoring, maintenance, operation, and management of such public property. The same types of
services which are authorized to be financed by the District from the proceeds of special taxes levied
within Improvement Area “C” are the types of services to be provided in the Territory. If and to the extent
possible, such services shall be provided in common within the District and the Territory.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that it is the
further intention of this City Council that, except where funds are otherwise available, a special tax
sufficient to pay for such services and related incidental expenses authorized by the Community Facilities
District Law, secured by recordation of a continuing lien against all non-exempt real property in the
Territory, will be levied annually within the boundaries of such Territory. For further particulars as to
the rate and method of apportionment of the proposed special tax, reference is made to the attached and
incorporated Exhibit A (the “Improvement Area ‘C’ Rate and Method”), which sets forth in sufficient
detail the method of apportionment to allow each landowner or resident within the proposed Territory to
clearly estimate the maximum amount that such person will have to pay. The special tax proposed to be
levied within the Territory shall be equal to the special tax levied to pay for the same services in
Improvement Area “C,” except that a higher or lower special tax may be levied within the Territory to
the extent that the actual cost of providing the services in the Territory is higher or lower than the cost of
providing those services in Improvement Area “C.” Notwithstanding the foregoing, the special tax may
not be levied at a rate which is higher than the maximum special tax authorized to be levied pursuant to
the Improvement Area “C” Rate and Method.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that the special
taxes herein authorized, to the extent possible or unless otherwise determined by the CFD Administrator,
shall be collected in the same manner as ad valorem property taxes and shall be subject to the same
penalties, procedure, sale and lien priority in any case of delinquency as applicable for ad valorem taxes.
Any special taxes that may not be collected on the County property tax roll shall be collected through a
direct billing procedure by the CFD Administrator. The maximum special tax rate in Improvement Area
“C” shall not be increased as a result of the annexation of the Territory to Improvement Area “C.”
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BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that it will hold
a Public Hearing and give notice as follows:
Public Hearing. NOTICE IS GIVEN THAT ON TUESDAY, JULY 16, 2024, AT
THE HOUR OF 5:00 PM CLOCK P.M., IN THE REGULAR MEETING PLACE OF
THE LEGISLATIVE BODY, BEING THE COUNCIL CHAMBERS, 276 FOURTH
AVENUE, CHULA VISTA, CALIFORNIA, OR VIA VIDEO CONFERENCE OR
TELECONFERENCE AS DIRECTED BY THE CITY DUE TO PUBLIC HEALTH
CONCERNS, A PUBLIC HEARING WILL BE HELD WHERE THIS
LEGISLATIVE BODY WILL CONSIDER THE AUTHORIZATION FOR THE
ANNEXATION OF THE TERRITORY TO THE DISTRICT AND
IMPROVEMENT AREA “C” THERETO, THE PROPOSED RATE AND METHOD
OF APPORTIONMENT OF THE SPECIAL TAX TO BE LEVIED WITHIN THE
TERRITORY AND ALL OTHER MATTERS AS SET FORTH IN THIS
RESOLUTION OF INTENTION.
AT SUCH PUBLIC HEARING, THE TESTIMONY OF ALL INTERESTED
PERSONS FOR OR AGAINST THE ANNEXATION OF THE TERRITORY OR
THE LEVYING OF SPECIAL TAXES WITHIN THE TERRITORY WILL BE HEARD.
AT SUCH PUBLIC HEARING, PROTESTS AGAINST THE PROPOSED
ANNEXATION OF THE TERRITORY, THE LEVY OF SPECIAL TAXES
WITHIN THE TERRITORY OR ANY OTHER PROPOSALS CONTAINED IN
THIS RESOLUTION MAY BE MADE ORALLY BY ANY INTERESTED
PERSON. ANY PROTESTS PERTAINING TO THE REGULARITY OR
SUFFICIENCY OF THE PROCEEDINGS SHALL BE IN WRITING AND SHALL
CLEARLY SET FORTH THE IRREGULARITIES OR DEFECTS TO WHICH
OBJECTION IS MADE. ALL WRITTEN PROTESTS SHALL BE FILED WITH
THE CITY CLERK PRIOR TO THE TIME FIXED FOR THE PUBLIC HEARING.
WRITTEN PROTESTS MAY BE WITHDRAWN AT ANY TIME BEFORE THE
CONCLUSION OF THE PUBLIC HEARING.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that it will provide
notice of the time and place of the public hearing which shall be given by the City Clerk by publication
in the legally designated newspaper of general circulation, said publication pursuant to Section 6061 of
the Government Code, with said publication to be completed at least seven (7) days prior to the date set
for the public hearing.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that if (a) 50%
or more of the registered voters, or six (6) registered voters, whichever is more, residing within
Improvement Area “C” of the District, (b) 50% or more of the registered voters, or six (6) registered
voters, whichever is more, residing within the Territory, (c) owners of one-half or more of the area of
land in the territory included in Improvement Area “C” of the District, or (d) owners of one-half or more
of the area of land included in the Territory, file written protests against the proposed annexation of the
Territory to the District in the future and such protests are not withdrawn so as to reduce the protests to
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less than a majority, no further proceedings shall be undertaken for a period of one year from the date of
the decision by the City Council on the issue discussed at the public hearing.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that it will
conduct an election if upon the conclusion of the public hearing, if the legislative body determines to
proceed with the annexation of the Territory, a proposition shall be submitted to the qualified electors of
the Territory. The vote shall be by registered voters within the Territory; provided, however, if there are
less than 12 registered voters, the vote shall be by landowners, with each landowner having one vote per
acre or portion thereof within the Territory.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that this
Resolution shall become effective immediately upon its adoption.
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Resolution No. 2024-108
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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 28th 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 certify that the foregoing
Resolution No. 2024-108 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 28th day of May 2024.
Executed this 28th day of May 2024.
Kerry K. Bigelow, MMC, City Clerk
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EXHIBIT A
Rate and Method of
Apportionment of Special Tax
CITY OF CHULA VISTA
COMMUNITY FACILITIES DISTRICT NO. 97-2
(PRESERVE MAINTENANCE DISTRICT)
Improvement Area C
Annexation No. 13
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Rate and Method of
Apportionment of Special
Tax
City of Chula Vista
Community Facilities District No. 97-2
(PRESERVE MAINTENANCE DISTRICT)
Improvement Area
C Annexation No.
13
A Special Tax of Community Facilities District No. 97-2 (Preserve Maintenance District) of the
City of Chula Vista ("CFD") shall be levied on all Assessor's Parcels in Annexation No. 13 of
Improvement Area C of the CFD and collected each Fiscal Year commencing with Fiscal Year
2024-2025 in an amount determined through the application of the rate and method of
apportionment of the Special Tax set forth below. All of the real property within Annexation
No. 13 of Improvement Area C of the CFD, 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 collect the
Special Taxes, including salaries of City employees and a proportionate amount of the City’s
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general administrative overhead related thereto, and the fees of consultants and legal
counsel providing services related to the administration of the CFD; the cos ts of collecting
installments of the Special Taxes; and any other costs required to administer Area C of 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.
"Building Square Foot or Square Footage" means the square footage as shown on an
Assessor’s Parcel’s building permit of Residential Property excluding garages or other
structures not used as living space.
"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" means Community Facilities District No. 97-2 (Preserve Maintenance District) of the
City of Chula Vista.
"City" means the City of Chula Vista.
"City Clerk" means the City Clerk for the City of Chula Vista or his or her designee.
"City Manager" means the City Manager for the City of Chula Vista or his or her designee.
"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 of
Chula Vista Ordinance No. 2883. In the event that Chula Vista Ordinance No. 2883 is
repealed, CPF Property means all Assessor’s Parcels which are classified as community
purpose facilities as defined in the Chula Vista Municipal Code Section 19.48.025.C (as
amended from time to time).
"Council" means the City Council of the City of Chula Vista, 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.
"Final Map Property" means any residential lot or non-residential lot created by a Final
Subdivision Map, but which is not classified as Developed Property.
"Final Subdivision Map" means a subdivision of property creating residential or non-
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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.
"Improvement Area C" or "Area C" means Improvement Area C of the CFD, as identified on
the boundary map for the CFD as amended from time to time.
"Land Use Class" means any of the classes listed in Table 1, Table 2, or Table 3.
"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.
"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.
"Operating Fund" means a fund that shall be maintained within the CFD for each Fiscal Year
to pay for Resource Monitoring and/or Preserve Operations and Maintenance activities a nd
Administrative Expenses.
"Operating Fund Balance" means the amount of funds in the Operating Fund at the end of
the preceding Fiscal Year.
"Operating Fund Requirement" means for any Fiscal Year an amount equal to the Resource
Monitoring Fund Requirement and the Preserve Operations and Maintenance Fund
Requirement for the current Fiscal Year in which Special Taxes are levied.
"Preserve Operations and Maintenance" means those activities described in Attachment A
hereto which is incorporated herein by this reference.
"Preserve Operations and Maintenance Fund Requirement" means for any Fiscal Year an
amount equal to the budgeted costs for Preserve Operations and Maintenance plus a pro -
rata share of the budgeted Administrative Expenses of the District for the current Fiscal Year
in which Special Taxes are levied.
"Property Owner Association Property" means any property within the boundaries of Area
C 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 Area C 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
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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.
"Reserve Fund Balance" means the amount of funds in the Reserve Fund at the end of the
preceding Fiscal Year.
"Reserve Fund Requirement" means an amount equal to up to 100% of the Operating Fund
Requirement for any Fiscal Year.
"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.
"Resource Management Plan" means the Otay Ranch Phase 1 Resource Management Plan
also referred to as “The Otay Ranch Resource Management Plan” dated October 28, 1993,
and the Otay Ranch Phase 2, Resource Management Plan dated June 4, 1996, as both such
plans may be amended from time to time.
"Resource Monitoring Program" means those described in Attachment B hereto which is
incorporated herein by this reference.
"Resource Monitoring Fund Requirement" means for any Fiscal Year an amount for each
Improvement Area equal to the Improvement Area’s fair share of the budgeted costs of the
Resource Monitoring Program plus a pro rata share of the budgeted Administrative
Expenses of the CFD for the current Fiscal Year in which Special Taxes are levied.
Improvement Area C’s “fair share” shall be based on Improvement Area C’s percentage of
the total acreage within the Otay Ranch General Development Plan Planning Area for which
a Resource Monitoring Program funding mechanism has been established.
"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 Area C to fund the Special Tax Requirement.
"Special Tax Requirement" means that amount required in any Fiscal Year for Area C to: (i)
pay the Resource Monitoring Fund Requirement, and Preserve Operations and Maintenance
Fund Requirement, less the Operating Fund Balance, and (ii) pay any amounts required to
establish or replenish the Reserve Fund to the Reserve Fund Requirement; (iii) pay for
reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special
Taxes levied in the previous Fiscal Year.
"State" means the State of California.
"Taxable Property" means all of the Assessor's Parcels within the boundaries of Area C 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.
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B. ASSIGNMENT TO CATEGORIES OF SPECIAL TAX
Each Fiscal Year using the definitions above, all Taxable Property within Annexation No. 13 of
Improvement Area C of the CFD shall be classified as Category I, Category II, Category III or
Exempt as defined in Section C. The Taxable Property shall further be classified as Developed
Property, Final Map Property or Undeveloped Property and shall be subject to Special Taxes
pursuant to Sections C and D below. Developed Property shall be further assigned to a Land
Use Class as specified in Table 1.
C. MAXIMUM SPECIAL TAX RATE
CATEGORY I
Category I includes Developed Property within the District (“Category I”).
The Maximum Special Tax for the Resource Monitoring Program and Preserve Operations and
Maintenance for Fiscal Year 2023-2024 on Developed Property are the rates set forth in Table
1 below. For Residential Property, the Special Tax shall be levied based upon Building Square
Footage and for Non-Residential Property shall be levied based on Acreage.
TABLE 1
Maximum Special Tax for Category I
Community Facilities District No. 97-2
Improvement Area C
(Fiscal Year 2023-2024)
Description Resource
Monitoring
Operation &
Maintenance
Total
Residential $0.0090/sq ft $0.0143/sq ft $0.0232/sq ft
Non-Residential $145.77/acre $231.42/acre $377.19/acre
CATEGORY II
Category II includes each Assessor’s Parcel of Taxable Property within the District for which a
Final Map has been recorded, but which is not classified as a Developed Parcel (“Category II”).
The Maximum Special Tax for the Resource Monitoring Program, and Preserve Operations and
Maintenance approved for Fiscal Year 2023-2024 on each Assessor’s Parcel in Category II is the
rate set forth in Table 2 below (said amount to be levied pro rata for any portion of an Acre).
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TABLE 2
Maximum Special Tax for Category
II Community Facilities District No.
97-2 Improvement Area C
(Fiscal Year 2023-2024)
Resource
Monitoring
Operation &
Maintenance
Total
$145.77/acre $231.42/acre $377.19/acre
CATEGORY III
Category III includes each Assessor’s Parcel of Taxable Property within the District not subject
to Special Tax under any other category (“Category III”).
The Maximum Special Tax approved for Fiscal Year 2023-2024 on Taxable Property within
Category III is the rate set forth in Table 3 below (said amount to be levied pro rata for any
portion of an Acre).
TABLE 3
Maximum Special Tax for Category
III Community Facilities District No.
97-2 Improvement Area C
(Fiscal Year 2023-2024)
Resource
Monitoring
Operation &
Maintenance
Total
$94.0856/acre $149.3685/acre $243.45/acre
EXEMPT CATEGORY
The Exempt Category includes each property owned, conveyed or irrevocably offered for
dedication to a public agency, or land which is in the public right -of-way, unmanned utility
easements which make utilization for other than the purpose set forth in the easement
impractical, common areas, private streets and parks, and open space lots (“Exempt
Category”).
SPECIAL CASES
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Land
Use Class and be considered “Special Case”. The Maximum Special Tax that may be levied on
an Assessor’s Parcel identified as Special Case shall be the sum of the Maximum Special Tax
levies that may be levied on all Land Use Classes located on that Assessor’s Parcel. The CFD
Administrator shall determine the allocation to each Land Use Class.
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ANNUAL ESCALATION OF MAXIMUM SPECIAL TAX
The Maximum Special Tax as shown in the tables above that may be levied on each Assessor’s
Parcel in Improvement Area C, Annexation No. 13, shall be increased each Fiscal Year beginning
in Fiscal Year 2024-2025 and thereafter by a factor equal to the annual percentage change in
the San Diego Metropolitan Area Consumer Price Index for All Urban Consumers (CPI -U, All
Items) or zero percent (0%), whichever is greater.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2024-2025, and for each following Fiscal Year, the Council shall
levy the Improvement Area C, Annexation No. 13, Special Tax at the rates established pursuant
to steps 1 through 4 below so that the amount of the Special Tax levied equals the Special Tax
Requirement. The Special Tax shall be levied each Fiscal Year as follows:
Step 1: Determine the revenue which could be generated by Parcels assigned to Category I by
multiplying the Building Square Footage for Parcels classified as Residential Parcels by the
Maximum Special Tax per Building Square Foot for the Resource Monitoring Program, and
Preserve Operations and Maintenance for Parcels and adding to that the maximum revenue
which could be generated by multiplying the total acres for Parcels classified as Non-Residential
Parcels by the Maximum Special Tax per Acre for the Resource Monitoring Program and
Preserve Operations and Maintenance.
Step 2: If the total revenue as calculated in Step 1 is greater than the esti mated Special Tax
Liability for Improvement Area C, reduce the Special Tax for each Parcel proportionately so that
the Special Tax levy for the Fiscal Year is equal to the Special Tax Liability for the Fiscal Year.
Step 3: If the total revenue as calculated in Step 1 is less than the Special Tax Liability for
Improvement Area C, a Special Tax shall be levied upon each Parcel within Improvement Area
C, classified as Category II. The Special Tax for Parcels assigned to Category II shall be calculated
as the lesser of:
The Special Tax Liability for Improvement Area C as determined by the City,
less the total revenue generated for all Parcels under Step 1 above, divided
by the total Acres for all Parcels within Improvement Area C assigned to
Category II,
OR
The Maximum Special Tax rate for Parcels assigned to Category II.
Step 4: If the total revenue as calculated in Step 1 and 3 is less than the Special Tax Liability,
for Improvement Area C, a Special Tax shall be levied upon each Parcel within Improvement
Area C classified as Category III. The Special Tax for Parcels assigned the Category III shall be
calculated as the lesser of:
The Special Tax Liability for Improvement Area C as determined by the City,
less the total revenue generated for all Parcels under St ep 1 and 3 above,
divided by the total Acres for all Parcels within Improvement Area C assigned
to Category III,
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Resolution No. 2024-108
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OR
The Maximum Special Tax rate for Parcels assigned to Category III and within
Improvement Area C.
However, in the event it is determined that the Special Tax Liability for Improvement Area C
includes delinquent Special Taxes from Parcel in Category III from the prior Fiscal Year, the City
shall determine the amount of delinquent taxes that arose from such Parcels and identify the
owner(s). The amount of delinquent Special Taxes, if any, that arose from the applicable
owner(s) shall first be divided by the total Category III Acres owned by such owner(s) and
collected from the applicable owner(s) with the remaining portion of the Special Tax Liabi lity
not related to delinquent Special Taxes to be collected from all Parcels in Category III according
to the procedure set forth in the preceding paragraph.
Notwithstanding the above, under no circumstances will the Special Tax levied against any
Assessor’s Parcel of Residential Property or Multi-Family Property for which an occupancy
permit for private residential use has been issued be increased by more than ten percent (10%)
annually up to the Maximum Special Tax as a consequence of delinquency or default by the
owner of any other Assessor's Parcel within Area C of the CFD.
E. APPEALS
Any landowner or resident who pays the Special Tax and believes that the amount of the
Special Tax levied on their Assessor’s Parcel is in error shall first consult with the CFD
Administrator regarding such error. If following such consultation, the CFD Administrator
determines that an error has occurred; the CFD Administrator may amend the amount of the
Special Tax levied on such Assessor’s Parcel. If following such consultation and action, if any,
by the CFD Administrator, the landowner or resident believes such error still exists; such person
may file a written notice with the City Clerk of the City appealing the amount of the Special Tax
levied on such Assessor’s Parcel. Upon the receipt of any such notice, the City Clerk shall
forward a copy of such notice to the City Manager who shall establish as part of the
proceedings and administration of the CFD, a special three-member Review/Appeal
Committee. The Review/Appeal Committee may establish such procedures, as it deems
necessary to undertake the review of any such appeal. The Review/Appeal Committee shall
interpret this Rate and Method of Apportionment and make determinations relative to the
annual administration of the Special Tax and any landowner or resident appeals, as herein
specified. The decision of the Review/Appeal Committee shall be final and binding as to all
persons.
F. 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, however, 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 Area C of the CFD or as
otherwise determined appropriate by the CFD Administrator.
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Resolution No. 2024-108
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G. TERM OF SPECIAL TAX
Taxable Property in Improvement Area C of the CFD shall remain subject to the Special Tax in
perpetuity.
Attachment A
Description of Preserve Operations and
Maintenance
Preserve Operations and Maintenance includes the maintenance, operation, and management
of the public or private property within boundaries of the Otay Ranch Preserve, as such
boundaries may be modified from time to time, required by the Resource Managemen t Plan
to be maintained as open space or habitat preservation land or both. Such maintenance,
operations and management shall include, but not be limited to, the following:
(i) Preserve Maintenance. Development, implementation and ongoing
provision of programs to maintain, operate and manage preserve
habitat values through: cultivation, irrigation, trimming, spraying,
fertilizing, and/or treatment of disease or injury; removal of trimmings,
rubbish, debris and other solid waste; maintenance of trails; removal
and control of exotic plant species (weeds); and control of cowbirds
through trapping.
(ii) Security, Development, implementation and ongoing provision of
security programs to: enforce "no trespassing" rules; curtail activities
that degrade resources, such as grazing, shooting, and illegal dumping;
remove trash, litter, and other debris; control access; prohibit off-road
traffic; and maintain fences and trails.
(iii) Preserve improvements: Acquire equipment and/or install
improvements necessary to maintain, operate and manage the open
space and habitat preservation land described above.
The above description of the Preserve Operations and Maintenance is general in nature. The
actual maintenance, operations and management of the open space and habitat preservation
land within the Otay Ranch Preserve may be modified from time to time as nec essary in order
to effectively provide such services in compliance with the requirements of the Resource
Management Plan.
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Attachment B
Description of Resource Monitoring
Implement the annual biota monitoring and reporting program consistent with the Resource
Management Plan to identify changes in the quality and quantity of preserve resources
including wildlife species, sensitive plants and sensitive habitat types.
The above description of the Resource Monitoring is general in nature. The actual monitoring
and reporting program may be modified from time to time as necessary in order to effectively
provide such services consistent with the requirements of the Resource Management Plan.
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