HomeMy WebLinkAboutReso 2024-114RESOLUTION NO. 2024-114
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA DECLARING ITS INTENTION TO ESTABLISH
PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2024-1
(CITRUS BAY) OF THE CITY OF CHULA VISTA AND
TAKING OTHER ACTIONS RELATING THERETO
WHEREAS, the CITY COUNCIL (the “City Council”) of the CITY OF CHULA VISTA,
CALIFORNIA (the “City”), at this time desires to initiate proceedings to create community
facilities district 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 (commencing with Section 53311) (the “Act”) and the City of Chula Vista
Community Facilities District Ordinance No. 2730, as amended, 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”); and
WHEREAS, the proposed community facilities district shall hereinafter be referred to as
Community Facilities District No. 2024-1 (Citrus Bay) of the City of Chula Vista, County of San
Diego, State of California (the “District”); and
WHEREAS, this City Council desires to proceed to adopt its Resolution of Intention to
initiate the proceedings to consider the establishment of such District, to set forth the proposed
boundaries for such District, to describe the public facilities proposed to be financed by such
District, to indicate the proposed rate and apportionment of a special tax sufficient to finance the
acquisition or construction of such facilities and the administration of the District and any
indebtedness incurred by the District and to fix a time and place for a public hearing on the
establishment of such District; and
WHEREAS, the Community Facilities District Law provides that the City Council may
initiate proceedings to establish a community facilities district only if it has first considered and
adopted local goals and policies concerning the use of the Community Facilities District Law; and
WHEREAS, the City Council has adopted local goals and policies as required pursuant to
the Community Facilities District Law; and
WHEREAS, this City Council desires to declare its intention to consider the establishment
of such proposed District; and
WHEREAS, this City Council further desires to direct, pursuant to the provisions of Section
53321.5 of the Government Code, the preparation of a report to provide more detailed information
relating to the proposed District, the proposed facilities to be financed through the District, and estimate
of the cost of providing such facilities (the “Community Facilities District Report”).
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that a community facilities district is proposed to be established under the provisions of the Act.
The name proposed for the community facilities district is “Community Facilities District No.
2024-1 (Citrus Bay), City of Chula Vista, County of San Diego, State of California.”
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the
foregoing recitals are correct and are incorporated herein by this reference.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the
boundaries of the proposed District are described and shown on the map entitled “Proposed
Boundary of Community Facilities District No. 2024-1 (Citrus Bay), City of Chula Vista, County
of San Diego, State of California,” which is attached hereto as Exhibit “A” and is on file with the
City Clerk. Said map is approved and, pursuant to Section 3110 of the California Streets and
Highways Code, the City Clerk shall, after conforming with the other requirements of Section
3111 of said Code, record the original of said map, and not later than 15 days prior to the date of
the public hearing set forth in herein, shall file a copy of said map with the County Recorder of the
County of San Diego.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, it is the
intention of this City Council to finance the acquisition or construction of certain facilities
authorized to be acquired or constructed pursuant to the provisions of the Act, and to pay debt
service on outstanding debt in connection with such facilities. A general description of the facilities
proposed to be authorized to be acquired or constructed is set forth in Exhibit B attached hereto
and incorporated herein by this reference (the “Facilities”).
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 acquisition or
construction of certain facilities and related incidental expenses including the payment of debt
service (the “Special Taxes”) secured by the recordation of a continuing lien against all taxable or
nonexempt property in the District, shall be annually levied within the District.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, under no
circumstances will Special Taxes 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 the District 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.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, for further
particulars as to the rate and method of apportionment of the Special Taxes to be levied on parcels
of taxable property in the District, reference is made to the attached and incorporated Exhibit “C”
(the “Rate and Method”), which sets forth in sufficient detail the rate and method of apportionment
of the Special Taxes for the Facilities to allow each landowner or resident within the District to
clearly estimate the maximum amount that such person will have to pay.
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BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, 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 the District 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.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, upon
recordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and
Highways Code, a continuing lien to secure each levy of the Special Taxes shall attach to all non-
exempt real property in the District, and that lien shall continue in force and effect.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, the special
tax obligation for any parcel may be prepaid and permanently satisfied in whole or in part pursuant
to the provisions therefor contained in the Rate and Method of Apportionment.
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. Additionally, and as described more fully in Section 53340 of the Act, properties
receiving a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation
Code shall be exempt from the Special Tax.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the
City Council finds that the Facilities described herein are necessary to meet increased demands
placed upon the City as a result of new development occurring within the boundaries of the
proposed District.
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 the proposed District, 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 Vista, that
pursuant to Section 53329.5 of the Act, the City Council finds that the public interest will not be
served by allowing the owners of property within the proposed District to enter into a contract in
accordance with subdivision (a) of that section, and that such owners shall not be permitted to elect
to perform the work and enter into a written contract with the City for the construction of the
Facilities pursuant to said Section 53329.5.
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BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that a public
hearing on the formation of the proposed District shall be held at a regular meeting at 5:00 p.m.
on July 16, 2024, in the council chambers located at 276 Fourth Avenue, Chula Vista, California 91910.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the
City Clerk shall publish a notice of the time and place of said hearing as required by Section 53322
of the Act, and may also give notice of the time and place of said hearing by first -class mail to
each registered voter and to each landowner within the proposed District, as prescribed by Section
53322.4 of said Code. Said notice shall be published at least seven (7) days and mailed at least
fifteen (15) days before the date of the hearing, and shall contain the information required by said
Section 53322.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the
officers of the City who will be responsible for providing the proposed Facilities to be provided
within and financed by the proposed District, if it is established, shall study the proposed District,
and, at or before the time of said hearing, file a report or reports with the City Council containing
a brief description of the Facilities by type which will in their opinion be required to adequately
meet the needs of the proposed District and their estimate of the fair and reasonable cost of
providing the Facilities and the related incidental expenses to be incurred in connection therewith.
All such reports shall be made a part of the record of the hearing to be held pursuant to this Resolution.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the
voting procedures to be followed shall be pursuant to Section 53326 of the Act and pursuant to the
applicable provisions of the California Election Code.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the
City Council finds this Resolution is not subject to the California Environmental Quality Act
(“CEQA”) in that the activity is covered by the general rule that CEQA applies only to projects
which have the potential for causing a significant effect on the environment. Where it can be seen
with certainty, as in this case, that there is no possibility that the activity in question may have a
significant effect on the environment, the activity is not subject to CEQA.
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.
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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 11th day of June 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. 2024-114 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 11th day of June 2024.
Executed this 11th day of June 2024.
Kerry K. Bigelow, MMC, City Clerk
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EXHIBIT “A”
PROPOSED BOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 2024-1
(CITRUS BAY), CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF
CALIFORNIA
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EXHIBIT “B”
DESCRIPTION OF PUBLIC FACILITIES COMMUNITY FACILITIES
DISTRICT NO. 2024-1 (CITRUS BAY),
CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA
The public facilities (the “Facilities”) authorized to be financed by the levy of special taxes
within the proposed Community Facilities District No. 2024-1 (Citrus Bay) (the “District”)
include but are not limited to:
(a) Street and transportation improvements including parking, rights of way,
curbs and gutters, and other improvements relating thereto; park acquisition and
improvements; and sewer improvements, including collection, transportation, treatment
and sewer disposal; and general civic facilities such as civic center, police, fire
suppression, library, corporation yard, and public recreation; and
(b) The incidental expenses proposed to be incurred are: (i) the cost of planning
and designing the public facilities and the cost of environmental evaluations thereof, (ii)
all costs associated with the formation of the proposed District, the issuance of the bonds
thereof, the determination of the amount of and collection of special taxes, the payment of
special taxes, and costs otherwise incurred in order to carry out the authorized purposes of
the proposed District, and
(iii) any other expenses incidental to the construction, completion, and inspection of the
public Facilities.
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EXHIBIT “C”
RATE AND METHOD OF APPORTIONMENT OF SPECIAL
TAX FOR COMMUNITY FACILITIES DISTRICT NO. 2024-1
(CITRUS BAY)
OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA
A Special Tax shall be levied on all Taxable Property within the boundaries of Community
Facilities District No. 2024-1 (Citrus Bay) (“CFD No. 2024-1” and “CFD”) and collected
each Fiscal Year commencing in Fiscal Year 2024-25, in an amount determined by the CFD
Administrator through the application of the procedures described below. All of the real
property within CFD No. 2024-1, unless exempted by law or by the provisions hereof, shall
be taxed for the purposes, to the extent, and in the manner herein provided.
1. 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 Map. An Acre means 43,560 square feet of land. If the
preceding maps for a land area are not available, the Acreage of such land area shall be
determined by the City Engineer.
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter
2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California, as
amended.
“Administrative Expenses” means the following actual or reasonably estimated costs
related to the administration of CFD No. 2024-1 including, but not limited to: the costs of
preparing and computing the Annual Special Tax (whether by the City or designee thereof
or both); the costs of collecting the Special Taxes (whether by the City, the County or
otherwise); the costs of remitting the Special Taxes to the Fiscal Agent; the costs of the Fiscal
Agent (including its legal counsel) in the discharge of the duties required of it under the
Fiscal Agent Agreement; the costs to the City, CFD No. 2024-1, or any designee thereof
complying with arbitrage rebate requirements, including without limitation rebate liability
costs and periodic rebate calculations; the costs to the City, CFD No. 2024-1, or any
designee thereof complying with disclosure or reporting requirements of the City or CFD
No. 2024- 1, associated with applicable federal and State laws; the costs associated with
preparing Special Tax disclosure statements and responding to public inquiries regarding the
Special Taxes; the costs to the City, CFD No. 2024-1, or any designee thereof related to an
appeal of the Special Tax; and the City’s annual administration fees and third party expenses.
Administrative Expenses shall also include amounts for Special Tax delinquency
monitoring and the estimated or advanced by the City or CFD No. 2024-1 for any other
administrative purposes of CFD No. 2024-1, including attorney’s fees and other costs
related to commencing and pursuing any foreclosure of delinquent Special Taxes.
“Annual Special Tax” means the Special Tax actually levied in any Fiscal Year on any
Assessor’s Parcel.
“Assessor” means the Assessor of the County of San Diego.
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“Assessor’s Parcel” means a lot or parcel shown on an Assessor’s Parcel Map with an
assigned Assessor’s Parcel Number.
“Assessor’s Parcel Map” means an official map of the Assessor designating parcels by
Assessor’s Parcel Number.
“Assessor’s Parcel Number” means the number assigned to a parcel designated by the Assessor
for purposes of identification.
“Assigned Special Tax” means the Special Tax of that name described in Section 3.A below.
“Backup Special Tax” means the Special Tax of that name described in Section 3.B below.
“Bonds” means any bonds or other debt of CFD No. 2024-1 issued or incurred whether in
one or more series, secured by the levy of Special Taxes.
"Boundary Map" means a recorded map which indicates the boundaries of CFD No. 2024-1.
“Building Permit” means the first legal document issued by a local agency giving official
permission for new construction. For purposes of this definition, “Building Permit” may or
may not include any subsequent building permit document(s) authorizing new construction on
an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as
determined by the CFD Administrator as necessary to fairly allocate Special Tax to the
Assessor’s Parcel, provided that following such determination the Maximum Special Tax that
may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times
maximum annual debt service on all outstanding Bonds plus the estimated annual
Administrative Expenses.
“Building Square Footage” means all of the square footage of living area within the
perimeter of a residential structure, not including any carport, walkway, garage, overhang,
or similar area. The determination of Building Square Footage shall be made by the CFD
Administrator by reference to the Building Permit(s) issued for such Assessor’s Parcel
and/or by reference to appropriate records kept by the City or County.
“Calendar Year” means the period commencing January 1 of any year and ending the
following December 31.
“CFD Administrator” means an authorized representative of the City, or designee thereof,
responsible for determining the Special Tax Requirement, for preparing the Annual Special
Tax roll and/or calculating the Backup Special Tax.
“CFD No. 2024-1” means the City of Chula Vista Community Facilities District No. 2024-
1 (Citrus Bay).
“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. 2024-1 under the Act.
“Condominium” means a unit, whether attached or detached, meeting the statutory definition of a
condominium contained in the California Civil Code Section 4285.
“County” means the County of San Diego, California.
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“Debt Service” means for each Fiscal Year, the total amount of principal and interest payable
on any Outstanding Bonds during the Calendar Year commencing on January 1 of such Fiscal
Year.
“Developed Property” means for each Fiscal Year, all Taxable Property for which a
Building Permit was issued prior to March 1 of the previous Fiscal Year. An Assessor’s Parcel
classified as Developed Property but for which the Building Permit that caused such
Assessor’s Parcel to be classified as Developed Property has been cancelled and/or voided
prior to the Fiscal Year for which Special Taxes are being levied shall be reclassified as
Undeveloped Property, provided that the levy of the Annual Special Tax after such
reclassification shall not be less than 1.1 times the annual Debt Service on all Outstanding
Bonds. If Bonds have not been issued, an Assessor’s Parcel classified as Developed Property
for which such a Building Permit has been cancelled and/or voided shall be reclassified as
Undeveloped Property.
“Exempt Property” means for each Fiscal Year, all Assessor’s Parcels designated as being
exempt from Special Taxes pursuant to Section 5 below.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or
lot line adjustment, pursuant to the Subdivision Map Act (California Government Code
Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil
Code 4285 that creates individual lots for which Building Permits may be issued without
further subdivision.
“Fiscal Year” means the period starting on July 1 and ending the following June 30.
“Fiscal Agent” means the fiscal agent, trustee, or paying agent under the Fiscal Agent Agreement.
“Fiscal Agent Agreement” means the agreement, indenture, resolution or other instrument
pursuant to which Bonds are issued, as modified, amended and/or supplemented from time
to time, and any instrument replacing or supplementing the same.
“Land Use Class” means any of the classes listed in Table 1 or 2 under Section 3A below.
Note: Land Uses Class is not in reference to a property’s zoning designation.
“Lot(s)” means an individual legal lot created by a Final Map for which a Building Permit
for residential construction has been or could be issued. Notwithstanding the foregoing, in
the case of an individual legal lot created by such a Final Map upon which Condominiums
are entitled to be developed, the number of Lots allocable to such legal lot for purposes of
calculating the Backup Special Tax applicable to such Final Map shall equal the number of
Condominiums which are permitted to be constructed on such legal lot as shown on such
Final Map.
“Master Developer” means CWC Broadway CV 256 LLC or its successors or assignees.
“Maximum Special Tax” means for each Assessor’s Parcel, the maximum Special Tax,
determined in accordance with Sections 3.C and 3.D below, which may be levied in a given
Fiscal Year on such Assessor’s Parcel of Taxable Property.
“Non-Residential Property” means all Assessor’s Parcels of Developed Property for
which a Building Permit has been issued for the purpose of constructing one or more non-
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residential units or structures, including, but not limited to commercial and industrial uses.
“Outstanding Bonds” means all Bonds which are deemed to be outstanding under the Fiscal
Agent Agreement.
“Prepayment Amount” means the amount required to prepay the Special Tax Obligation
in full for an Assessor’s Parcel as described in Section 8.A below.
“Property Owner Association Property” means any Assessor’s Parcel within the
boundaries of CFD 2024-1 owned in fee by a property owner association, including any
master or sub-association.
“Proportionately” or “Proportionate” means for Developed Property, that the ratio of the
actual Special Tax levy to the applicable Assigned Special Tax or Backup Special Tax is
equal for all Assessor’s Parcels of Developed Property. For Undeveloped Property,
“Proportionately” means that the ratio of the actual Special Tax levy per Acre to the
Maximum Special Tax per Acre is equal for all Assessor’s Parcels of Undeveloped Property.
“Proportionately” may similarly be applied to other categories of Taxable Property as listed
in Section 3 below.
“Public Property” means, for each Fiscal Year, any property within the boundaries of CFD
2024- 1, which is owned by, or irrevocably offered for dedication to the federal government,
the State of California, the County, the City or any other public agency as of June 30 of the
prior Fiscal Year; provided however that any property owned by a public agency and leased
to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed
and classified in accordance with its use. To endure that property is classified as Public
Property in the first Fiscal Year after it is acquired by or irrevocably offered for dedication
to a public agency, the property owner shall notify the CFD Administrator in writing of such
acquisition, offer, or dedication not later than June 30 of the Fiscal Year in which the
acquisition, offer, or dedication occurred.
“Residential Property” means all Assessor’s Parcels of Developed Property for which a
Building Permit has been issued for the purpose of constructing one or more Residential
Units.
“Residential Unit” means each separate residential dwelling unit that comprises an
independent facility capable of conveyance or rental, separate from adjacent residential
dwelling units.
“Special Tax” means any special tax levied within CFD 2024-1 pursuant to the Act and
this Rate and Method of Apportionment of Special Tax.
“Special Tax Obligation” means the total obligation of an Assessor’s Parcel of Taxable
Property to pay the Special Tax for the remaining life of CFD 2024-1.
“Special Tax Requirement” means that amount required in any Fiscal Year to: (i) pay
regularly scheduled Debt Service on all Outstanding Bonds; (ii) pay periodic costs on the
Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on
the Outstanding Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to
establish or replenish any reserve funds for all Outstanding Bonds; (v) pay directly for
eligible development impact fees and the acquisition or construction of eligible facilities,
provided the inclusion of such amount does not increase the levy of the Special Tax on
Undeveloped Property; and (vi) pay for reasonably anticipated Special Tax delinquencies
based on the delinquency rate for Special Taxes in the previous Fiscal Year; less (vii) a
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credit for funds available to reduce the Annual Special Tax levy, as determined by the CFD
Administrator pursuant to the Fiscal Agent Agreement.
“State” means the State of California.
“Taxable Property” means all of the Assessor’s Parcels within the boundaries of CFD,
which are not exempt from the levy of the Special Tax pursuant to law or Section 5 below.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified
as Developed Property.
2. LAND USE CLASSIFICATION
Each Fiscal Year, beginning with Fiscal Year 2024-25, each Assessor’s Parcel within CFD
2024-1 shall be classified as Taxable Property or Exempt Property. In addition, all Taxable
Property shall further be classified as Developed Property or Undeveloped Property, and all
such Taxable Property shall be subject to the levy of Special Taxes in accordance with this
Rate and Method of Apportionment of Special Tax determined pursuant to Sections 3 and
4 below. Furthermore, each Assessor’s Parcel of Developed Property shall be classified
according to its applicable Land Use Class based on its Building Square Footage.
In the event a Building Permit is issued for one or more Residential Property Condominiums
prior to March 1 of the previous Fiscal Year and an Assessor’s Parcel Number has not yet
been assigned to each such Condominium for the current Fiscal Year, the applicable
Assessor’s Parcel may be classified as both Developed Property and Undeveloped Property.
In such an instance, the Special Taxes levied on such Assessor’s Parcel shall be the sum of
the amount derived from the following (i) applying the Assigned Special Tax applicable to
each Condominium for which a Building Permit was issued prior to March 1 of the previous
Fiscal Year and (ii) levying the acreage allocable to such actual or planned Condominiums
for which a Building Permit has not been issued prior to March 1 of the previous Fiscal Year
as Undeveloped Property; the allocable acreage shall be computed on a pro-rata basis based
on the relative number of remaining Condominiums to the total number of Condominiums
entitled to be developed on such Assessor’s Parcel. The total number of Condominiums
entitled to be developed on the applicable Assessor’s Parcel shall be determined from the
recorded condominium map, condominium plan, applicable site plan, plot plan, or other
appropriate records kept by the City as reasonably determined by the CFD Administrator.
3. SPECIAL TAX RATES
A. Assigned Special Tax for Developed Property
The Assigned Special Tax applicable to an Assessor’s Parcel classified as
Developed Property commencing Fiscal Year 2024-25 shall be determined
pursuant to Table 1 below.
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Table 1
Assigned Special Tax Rates for Developed Property
Land Use Class
Land Use
Type
Building Square
Footage
Assigned
Special Tax
1
Residential Property
< 1,201
$2,702 per
Residential Unit
2
Residential Property
1,201 to 1,400
$2,752 per
Residential Unit
3
Residential Property
1,401 to 1,600
$2,802 per
Residential Unit
4
Residential Property
> 1,600
$2,812 per
Residential Unit
On each July 1, commencing July 1, 2025 and ending July 1, 2035, the Assigned Special Tax for Developed
Property shall be increased by two percent (2.0%) of the amount in effect in the prior Fiscal Year.
B. Backup Special Tax for Developed Property
When a Final Map or a condominium plan is recorded within CFD 2024-1, the Backup
Special Tax for Assessor’s Parcels of Developed Property classified as Residential Property
shall be determined as follows:
For each Assessor’s Parcel of Residential Property or for each Assessor’s Parcel of
Undeveloped Property to be classified as Residential Property upon its development within
the Final Map area of CFD 2024-1, the Backup Special Tax for Fiscal Year 2024-25 shall
be the rate per Lot calculated according to the following formula:
$151,512 x A
B =
L
The terms have the following meanings:
B = Backup Special Tax per Lot
A = Acreage classified or to be classified as Residential Property in such Final Map. The
land area applicable to a Condominium shall be computed from the Acreage of the
Lot on which the Condominium is located, with the Acreage for such Lot allocated
equally among all of the Condominiums located or to be located on such Lot.
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L = For a Final Map, the number of Lots which are classified or to be classified as
Residential Property.
Notwithstanding the foregoing, if Assessor’s Parcels of Residential Property or
Undeveloped Property for which the Backup Special Tax has been determined are
subsequently changed or modified by recordation of a new or amended Final Map, then the
Backup Special Tax applicable to such Assessor’s Parcels shall be recalculated to equal the
total amount of Backup Special Tax that would have been generated if such change did not
take place.
On each July 1, commencing July 1, 2025 and ending July 1, 2035, the Backup Special Tax
applicable to each Assessor’s Parcel of Residential shall be increased by two percent
(2.00%) of the amount in effect in the prior Fiscal Year.
C. Maximum Special Tax for Developed Property
Each Fiscal Year, the Maximum Special Tax for an Assessor’s Parcel of Developed Property
shall be the greater of the applicable Assigned Special Tax or Backup Special Tax.
D. Maximum Special Tax for Undeveloped Property
The Maximum Special Tax for Undeveloped Property commencing in Fiscal Year 2024-25 shall be
$151,512 per Acre.
On each July 1, commencing July 1, 2025 and ending July 1, 2035, the Maximum Special
Tax applicable to each Assessor’s Parcel of Undeveloped Property shall be increased by two
percent (2.00%) of the amount in effect in the prior Fiscal Year.
E. Multiple Land Use Classes
In some instances, an Assessor’s Parcel of Developed Property may contain more than one
Land Use Class. The Maximum Special Tax that may be levied on such an Assessor’s Parcel
shall only be levied on the Residential Property Land Use Class located on such Assessor’s
Parcel.
F. Special Tax Reduction prior to issuance of Bonds
Prior to the issuance of Bonds, the Assigned Special Tax, Backup Special Tax, and Maximum
Special Tax (collectively the “Special Tax Rates”) on Taxable Property may be reduced in
accordance with, and subject to the conditions set forth in this paragraph. Upon the City’s
receipt of a written request from property owner and the CFD Administrator, the Special Tax
Rates on Taxable Property may be reduced to a level which will provide not less than one
hundred ten percent (110%) of the estimated debt service with respect to the amount of
Bonds requested to be issued in such written request. If it is reasonably determined by the
CFD Administrator that the total effective tax rate on Residential Property exceeds 2%, the
Special Tax Rates may be reduced to the amount necessary to satisfy the maximum
allowable effective tax rate requirement on Residential Property with the written consent of
Master Developer, which consent shall not be unreasonably withheld, and the CFD
Administrator. It shall not be required that reductions among each “Building Square
Footage” range of Residential Property be proportional. Additionally, the “CFD Public
Facilities Costs” amount in Section 8 shall be reduced commensurate with any reductions
to the Special Tax Rates pursuant to this paragraph, as reasonably determined by the CFD
Administrator. A certificate in substantially the form attached hereto as Exhibit “B” shall be
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used for purposes of evidencing the required written consent and effectuating the reduction
to the Special Tax Rates. The reductions permitted pursuant to this paragraph shall be
reflected in an amended Notice of Special Tax Lien which the City shall cause to be
recorded.
Once bonds are issued for CFD No. 2024-1, this paragraph 3.F shall become void.
4. METHOD OF APPORTIONMENT
For each Fiscal Year, commencing Fiscal Year 2024-25, the CFD Administrator shall
determine the Special Tax Requirement and levy the Special Tax on all Taxable Property in
accordance with the following steps:
Step 1: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of
Developed Property at up to 100% of the applicable Assigned Special Tax to satisfy the
Special Tax Requirement;
Step 2: If additional monies are needed to satisfy the Special Tax Requirement after Step 1
has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel
of Undeveloped Property up to 100% of the Maximum Special Tax for Undeveloped
Property as needed to satisfy the Special Tax Requirement;
Step 3: If additional monies are needed to satisfy the Special Tax Requirement after the first
two steps have been completed, the Special Tax shall be increased Proportionately on each
Assessor’s Parcel of Developed Property up to 100% of the Maximum Special Tax for
Developed Property as needed to satisfy the Special Tax Requirement. Notwithstanding the
above, under no circumstances will the Special Tax levied in any Fiscal Year against any
Assessor’s Parcel of Residential Property for which an occupancy permit for private
residential use has been issued be increased as a result of a delinquency or default in the
payment of the Special Tax applicable to any other Assessor’s Parcel within CFD 2024-1
by more than ten percent (10%) above what would have been levied in the absence of such
delinquencies or defaults.
5. EXEMPTIONS
The CFD Administrator shall classify as Exempt Property (i) Assessor’s Parcels of Public
Property,
(ii) Assessor’s Parcels of Property Owner Association Property, (iii) Assessor’s Parcels
which are used as places of worship and are exempt from ad valorem property taxes because
they are owned by a religious organization, (iv) Non-Residential property including, but not
limited to, commercial and industrial parcels, and (v) Assessor’s Parcels with public or
utility easements making impractical their utilization for other than the purposes set forth in
the easement, provided that no such classification would reduce the sum of all Taxable
Property in CFD 2024-1 to less than 4.46 Acres. Assessor’s Parcels which cannot be
classified as Exempt Property because such classification would reduce the sum of all
Taxable Property in CFD 2024-1 to less than 4.46 Acres, shall be classified as Taxable
Property and will continue to be subject to the CFD 2024-1 Special Taxes accordingly. Tax
exempt status for the purpose of this paragraph will be assigned by the CFD Administrator
in the chronological order in which property becomes eligible for classification as Exempt
Property.
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If the use of an Assessor’s Parcel of Exempt Property changes so that such Assessor’s Parcel
is no longer classified as one of the uses set forth in the first paragraph of Section 5 above that
would make such Assessor’s Parcel eligible to be classified as Exempt Property, such
Assessor’s Parcel shall cease to be classified as Exempt Property and shall be deemed to be
Taxable Property.
6. APPEALS
Any property owner 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 property owner’s Assessor’s Parcel(s) for the
current Fiscal Year prior to the payment date,
(ii) Require the CFD to reimburse the property owner 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 property
owner’s Assessor’s Parcel(s) in the amount of the overpayment.
If following such consultation and action by the CFD Administrator the property owner
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 property owner
appeals. The decision of the City Council or designee shall be final and binding as to all
persons.
7. COLLECTION OF SPECIAL TAXES
Collection of the Annual Special Tax shall be made by the County in the same manner as
ordinary ad valorem property taxes are collected and the Annual Special Tax shall be subject
to the same penalties and the same lien priority in the case of delinquency as ad valorem
taxes; provided, however, that the City Council may provide for (i) other means of collecting
the Special Tax, including direct billings thereof to the property owners; and (ii) judicial
foreclosure of delinquent Annual Special Taxes.
8. PREPAYMENT OF SPECIAL TAX OBLIGATION
A. Prepayment in Full
Property owners may prepay and permanently satisfy the Special Tax Obligation by a cash
settlement with the City as permitted under Government Code Section 53344. The following
definitions apply to this Section 8:
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“CFD Public Facilities Costs” means an amount sufficient to pay development impact fees
and acquire or construct the facilities to be financed under the Act and financing program for
CFD 2024- 1, or such lower number as shall be determined by the CFD Administrator.
“Improvement Fund” means the fund (regardless of its name) established pursuant to the
Fiscal Agent Agreement to hold funds, which are currently available for expenditure to
acquire or construct the facilities or pay development impact fees authorized to be funded
by CFD No. 2024-1.
“Future Facilities Costs” means the CFD Public Facilities Costs minus (i) costs previously
paid from the Improvement Fund to acquire or construct the facilities or pay for development
impact fees,
(ii) monies currently on deposit in the Improvement Fund, and (iii) monies currently on
deposit in an escrow or other designated fund that are expected to be available to finance
CFD Public Facilities Costs.
“Outstanding Bonds” means all Previously Issued Bonds, which remain outstanding as of
the first interest and/or principal payment date following the current Fiscal Year excluding
Bonds to be redeemed at a later date with proceeds of prior Special Tax prepayments.
“Previously Issued Bonds” means all Bonds that have been issued prior to the date of
prepayment.
The Special Tax Obligation applicable to an Assessor’s Parcel of Developed Property, or
Undeveloped Property for which a Building Permit has been issued may be prepaid and the
obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as
described herein, provided that a prepayment may be made with respect to a particular
Assessor’s Parcel only if there are no delinquent Special Taxes with respect to such
Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel eligible to
prepay the Special Tax Obligation shall provide the CFD Administrator with written notice
of intent to prepay, and designate or identify the company or agency that will be acting as
the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of
the Prepayment Amount for such Assessor’s Parcel within thirty (30) days of the request,
and may charge a reasonable fee for providing this service. Prepayment must be made at
least 60 days prior to any redemption date for the Bonds to be redeemed with the proceeds
of such prepaid Special Taxes, unless a shorter period is acceptable to the Fiscal Agent and
the City. The Prepayment Amount (defined below) shall be calculated for each applicable
Assessor’s Parcel or group of Assessor’s Parcels as summarized below (capitalized terms
as defined below):
Bond Redemption Amount plus Redemption Premium
plus Future Facilities Costs Prepayment Amount plus Defeasance
Amount plus Prepayment Administrative Fees and Expenses less
Reserve Fund Credit less Capitalized Interest Credit Total: equals
Prepayment Amount
As of the proposed date of prepayment, the Prepayment Amount (defined in Step 14 below)
shall be calculated as follows:
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Step No.:
1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.
2. For Assessor’s Parcels of Developed Property, determine the Maximum Special
Tax. For Assessor’s Parcels of Undeveloped Property for which a Building Permit
has been issued, compute the Maximum Special Tax for that Assessor’s Parcel as
though it was already designated as Developed Property, based upon the Building
Permit which has already been issued for that Assessor’s Parcel.
3. Divide the Maximum Special Tax computed pursuant to paragraph 2 by the total
expected Maximum Special Tax revenue for CFD 2024-1 assuming all Building
Permits have been issued (build-out) within CFD 2024-1, excluding any Assessor’s
Parcels for which the Special Tax Obligation has been previously prepaid.
4. Multiply the quotient computed pursuant to paragraph 3 by the Outstanding Bonds
and round that number up to the nearest $5,000 increment to compute the amount of
Outstanding Bonds to be retired and prepaid for all applicable Assessor’s Parcels
(the “Bond Redemption Amount”).
5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the
applicable redemption premium (expressed as a percentage), if any, on the
Outstanding Bonds to be redeemed at the first available call date (the “Redemption
Premium”).
6. Compute the Future Facilities Costs.
7. Multiply the quotient computed pursuant to paragraph 3 by the amount determined
pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be
prepaid (the “Future Facilities Prepayment Amount”).
8. Compute the amount needed to pay interest on the Bond Redemption Amount from
the first bond interest and/or principal payment date following the current Fiscal
Year until the expected redemption date for the Outstanding Bonds which,
depending on the Fiscal Agent Agreement, may be as early as the next interest
payment date.
9. Compute the amount the CFD Administrator reasonably expects to derive from the
reinvestment of the Prepayment Amount less the Future Facilities Prepayment
Amount and the Prepayment Administrative Fees from the date of prepayment until
the redemption date for the Outstanding Bonds to be redeemed with the
prepayment.
10. Subtract the amount computed in paragraph 9 from the amount computed in
paragraph 8 (the “Defeasance Amount”).
11. Calculate the administrative fees and expenses of CFD No. 2024-1, including the
costs of computation of the prepayment, the costs to invest the prepayment
proceeds, the costs of redeeming the Outstanding Bonds to be redeemed with the
prepayment, and the costs of recording any notices to evidence the prepayment and
the redemption (the “Prepayment Administrative Fees”).
12. If reserve funds for the Outstanding Bonds, if any, are at or above 100% of the
reserve requirement (as defined in the Fiscal Agent Agreement) on the prepayment
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calculation date, a reserve fund credit shall be calculated as a reduction in the
applicable reserve fund for the Outstanding Bonds to be redeemed pursuant to the
prepayment (the “Reserve Fund Credit”). No Reserve Fund Credit shall be granted
if, after the Prepayment Amount is calculated, reserve funds are below 100% of the
reserve requirement after taking into account such prepayment.
13. If any capitalized interest for the Outstanding Bonds will not have been expended at
the time of the first interest and/or principal payment following the current Fiscal
Year, a capitalized interest credit shall be calculated by multiplying the quotient
computed pursuant to paragraph 3 by the expected balance in the capitalized interest
fund after such first interest and/or principal payment (the “Capitalized Interest
Credit”).
14. The amount to prepay the Special Tax Obligation is equal to the sum of the amounts
computed pursuant to paragraphs 4, 5, 7, 10, and 11, less the amounts computed
pursuant to paragraphs 12 and 13 (the “Prepayment Amount”).
15. From the Prepayment Amount, the sum of the amounts computed pursuant to
paragraphs 4, 5, and 10, less the amounts computed pursuant to paragraphs 12 and
13 shall be deposited into the appropriate fund as established under the Fiscal Agent
Agreement and be used to retire Outstanding Bonds or make Debt Service
payments. The amount computed pursuant to paragraph 7 shall be deposited into the
Construction Fund. The amount computed pursuant to paragraph 11 shall be retained
by CFD No. 2024-1.
The Prepayment Amount may be sufficient to redeem an amount other than a $5,000
increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereof
will be retained in the appropriate fund established under the Fiscal Agent Agreement to
redeem Bonds to be used with the next prepayment of Bonds.
The CFD Administrator will confirm that all previously levied Special Taxes have been paid
in full. With respect to any Assessor’s Parcel for which the Special Tax Obligation is prepaid
in full, once the CFD Administrator has confirmed that all previously levied Special Taxes
have been paid, the City Council shall cause a suitable notice to be recorded in compliance
with the Act, to indicate the prepayment of the Special Tax Obligation and the release of the
Special Tax lien on such Assessor’s Parcel, and the obligation of the owner of such
Assessor’s Parcel to pay the Special Tax shall cease.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the
aggregate amount of Maximum Special Taxes less Administrative Expenses that may be
levied on Taxable Property, respectively, after the proposed prepayment is at least 1.1 times
the Debt Service on all Outstanding Bonds in each Fiscal Year.
B. Partial Prepayment
The Special Tax on an Assessor’s Parcel of Developed Property or Undeveloped Property
for which a Building Permit has been issued may be partially prepaid. The amount of the
prepayment shall be calculated as in Section 8.A.; except that a partial prepayment shall be
calculated according to the following formula:
PP = (PE-A) x F+A
These terms have the following meaning:
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PP = the partial prepayment
PE = the Prepayment Amount calculated according to Section 8.A
F = the percentage by which the owner of the Assessor’s Parcel(s) is partially prepaying the
Special Tax Obligation
A = the Prepayment Administrative Fees and Expenses from Section 8.A
The owner of any Assessor’s Parcel who desires such partial prepayment shall notify the
CFD Administrator of (i) such owner’s intent to partially prepay the Special Tax Obligation,
(ii) the percentage by which the Special Tax Obligation shall be prepaid, and (iii) the
company or agency that will be acting as the escrow agent, if any. The CFD Administrator
shall provide the owner with a statement of the amount required for the partial prepayment
of the Special Tax Obligation for an Assessor’s Parcel within sixty (60) days of the request
and may charge a reasonable fee for providing this service.
With respect to any Assessor’s Parcel that is partially prepaid, the City shall (i) distribute
the funds remitted to it according to Section 8.A., and (ii) indicate in the records of CFD No.
2024-1 that there has been a partial prepayment of the Special Tax Obligation and that a
portion of the Special Tax with respect to such Assessor’s Parcel, equal to the outstanding
percentage (1.00 - F) of the Maximum Special Tax, shall continue to be levied on such
Assessor’s Parcel.
Notwithstanding the foregoing, no partial prepayment shall be allowed unless the aggregate
amount of Maximum Special Taxes less Administrative Expenses that may be levied on
Taxable Property, respectively, after the proposed partial prepayment is at least 1.1 times
the Debt Service on all Outstanding Bonds in each Fiscal Year.
9. TERM OF SPECIAL TAX
The Special Tax shall be levied as long as necessary to meet the Special Tax Requirement,
but in any event not after Fiscal Year 2059-60. The Special Tax will cease to be levied in an
earlier Fiscal Year if the CFD Administrator has determined that all required interest and
principal payments on the Bonds have been paid, no delinquent Special Taxes remain
uncollected, and the City has covenanted that it will not issue any more Bonds (other than
refunding Bonds) to be supported by Special Taxes levied under this Rate and Method of
Apportionment.
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EXHIBIT A
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EXHIBIT B
CERTIFICATE TO AMEND THE SPECIAL TAX
COMMUNITY FACILITIES DISTRICT NO. 2024-1 (CITRUS BAY)
OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO
STATE OF CALIFORNIA
TAX REDUCTION CERTIFICATE
1. The undersigned property owners hereby request modification of the following information
in the Rate and Method of Apportionment of Special Tax (the "RMA") for Community
Facilities District No. 2024-1 (Citrus Bay) of the City of Chula Vista (the “CFD”).
2. Pursuant to Section 3 of the Rate and Method of Apportionment, as attached to the Notice
of Special Tax Lien, recorded in the Official Records of the County of San Diego as
Instrument No. XXXXXX on MM/DD/YYYY, the County of San Diego (the “County”)
hereby reduces the Assigned Special Tax for Developed Property within the CFD as set
forth in Table 1 of the RMA.
3. The information in Table 1, relating to the Assigned Special Tax for Developed Property
within CFD No. 2021-01 (IA No. 1) shall be amended and restated in full as follows:
Table 1: Assigned Special Tax for Developed
Property
Land Use Class
Land Use
Type
Building Square
Footage
Assigned
Special Tax
1 Residential Property < 1,201 $ per
Residential Unit
2 Residential Property 1,201 to 1,400 $ per
Residential Unit
3 Residential Property 1,401 to 1,600 $ per
Residential Unit
4 Residential Property > 1,600 $ per
Residential Unit
4. The calculation of the Backup Special Tax for Assessor’s Parcels of Developed Property
within CFD 2024-1 classified as Residential Property shall be amended as follows:
For each Assessor’s Parcel of Residential Property or for each Assessor’s Parcel of Undeveloped
Property to be classified as Residential Property upon its development within the Final Map area
of CFD 2024-1, the Backup Special Tax for shall be the rate per Lot calculated according to the
following formula:
$ x A
B =
L
The terms have the following meanings:
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B = Backup Special Tax per Lot
A = Acreage classified or to be classified as Residential Property in such Final
Map. The land area applicable to a Condominium shall be computed from
the Acreage of the Lot on which the Condominium is located, with the
Acreage for such Lot allocated equally among all of the Condominiums
located or to be located on such Lot.
L = For a Final Map, the number of Lots which are classified or to be classified
as residential Property.
5. On each July 1, commencing July 1, 2025 and ending July 1, 2035, the Assigned Special
Tax Rates in Table 1 and the Backup Special Tax applicable to each Assessor’s Parcel of
Residential shall be increased by two percent (2.00%) of the amount in effect in the prior
Fiscal Year.
6. Section 3 of the RMA may only be modified prior to the issuance of Bonds.
7. Upon execution of the certificate by the County and the CFD, the County shall cause an
amended Notice of Special Tax Lien for the CFD to be recorded reflecting the
modifications set forth herein.
I hereby declare under penalty of perjury that the above representations are true and correct.
Property Owner:
By: Date:
By execution hereof, the undersigned acknowledges, on behalf of the City of Chula Vista and CFD
No. 2024-1(Citrus Bay) receipt of this Certificate and modification of the RMA as set forth in this
Certificate.
City of Chula Vista
By: Date: CFD
Administrator
Community Facilities District No. 2024-1 (Citrus Bay) of the City of Chula Vista
By: Date: CFD
Administrator
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