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HomeMy WebLinkAboutReso 2026-078 RESOLUTION NO. 2026-078 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, DECLARING ITS INTENTION TO DESIGNATE IMPROVEMENT AREA “D” OF COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT) OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ANNEX TERRITORY AS ANNEXATION NO. 1 THERETO, AND TAKING OTHER ACTIONS RELATED THERETO (ANNEXATION NO. 1) WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA, (“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) OF THE CITY OF CHULA VISTA , COUNTY OF SAN DIEGO, STATE OF CALIFORNIA (the “District”) and previous 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, the City Council has received a written petition (the “Petition”) from the owner (the “Owner”) of certain real property included within the City (the “Territory”) requesting that the City Council initiate proceedings to annex the Territory into a new improvement area within the District to be designated as “Improvement Area D of Community Facilities District No. 97-2 (Preserve Maintenance District), of the City of Chula Vista, County of San Diego, State of California;” (the “Improvement Area”) and accordingly, the City Council further desires to designate such annexation as Annexation No. 1; and WHEREAS, the Owner is the owner of more than ten percent (10%) of the property which is proposed to be included within the boundaries of the proposed Improvement Area; and WHEREAS, having received the Petition, the City Council is required to initiate proceedings to designate the Improvement Area and to annex Territory to the Improvement Area, set forth the boundaries for the Improvement Area, indicate the type of public services proposed to be financed by the Improvement Area, indicate the rate and method of apportionment of a special tax sufficient to finance the public services and the administration of the Improvement Area, and set a time and place for a public hearing relating to the designation of the Improvement Area and annexation of the Territory thereto; and Docusign Envelope ID: B8DA8459-5624-87BA-83F3-9B7A28081A62 Resolution No. 2026-078 Page No. 2 WHEREAS, accordingly, the City Council desires to initiate proceedings to consider the designation of the Improvement Area and annexation of the Territory thereto, and to designate such annexation as Annexation No. 1; and WHEREAS, this legislative body now desires to proceed to adopt this Resolution of Intention to designate the Improvement Area and to annex the Territory to the Improvement Area, to describe the territory included within the Improvement Area 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 designation of the Improvement Area and the annexation of the Territory to the Improvement Area; and WHEREAS, a map showing the Territory proposed to be designated as the Improvement Area and Annexation No. 1 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. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it declares its intention to designate Improvement Area D of Community Facilities District No. 97-2 (Preserve Maintenance District) of the City of Chula Vista, County of San Diego, State of California, and to authorize the annexation of the Territory thereto. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the foregoing recitals are true and correct, are incorporated herein by this reference, and the City Council hereby accepts the petition of the landowner to proceed with the designation of the Improvement Area and annexation of the Territory thereto. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that these proceedings for designating the Improvement Area and 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 the City Council hereby determines that the public convenience and necessity requires that the Improvement Area is designated within the District and the Territory is annexed to the Improvement Area. The City Council further declares that additional territory in the future may annex into the Improvement Area. A description of the boundaries and Territory proposed to be annexed is as follows: All that Territory proposed to be designated the Improvement Area and annexed thereto, as such property is shown on a map as previously approved by this legislative body, such map entitled “Community Facilities District No. 97-2 Improvement Area D (Preserve Maintenance District), City of Chula Vista, County of San Diego, State of California” (the “Improvement Area 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: Docusign Envelope ID: B8DA8459-5624-87BA-83F3-9B7A28081A62 Resolution No. 2026-078 Page No. 3 All that property and territory as originally included within and previously annexed to the District, 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. 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 and are incorporated herein by this reference. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the improvement area proposed to be designated within the District shall be known as “IMPROVEMENT AREA “D” OF COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT), OF THE 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 services that are authorized to be financed by the District from the proceeds of special taxes levied within the Improvement Area are certain services which are in addition to those provided in or required for the territory within the District and will not be replacing services already available. A general description of such services to be financed by the Improvement Area is as follows: The actions necessary to implement and carry out the Eastlake Storage Mitigation Project Long-Term Management Plan (the “Long-Term Management Plan”) dated June 2025, prepared for the mitigation site located within the Salt Creek riparian corridor in the Otay Ranch Preserve (the “Mitigation Site”). The activities required to be performed pursuant to the Long-Term Management Plan, include but are not limited to, the monitoring, maintenance, reporting, and adaptive management activities required under the Long-Term Management Plan for the Mitigation Site including but not limited to, invasive species control, trash removal, site access control, biological monitoring, reporting, and as-needed remedial or adaptive management actions necessary to ensure the long-term sustainability, habitat function, and regulatory compliance of preserve and mitigation areas following completion of initial mitigation and monitoring requirements. The activities described above are limited to those discrete tasks identified in the Long-Term Management Plan and are intended to ensure the long-term sustainability and ecological function of the Mitigation Site in perpetuity following completion of initial mitigation and monitoring requirements. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the District shall finance all direct and incidental costs, including but not limited to, the Administrative Expenses and Long-Term Management Reserve Fund (as such terms are defined in the Improvement Area “D” Rate and Method), and any other expenses necessary to provide such Docusign Envelope ID: B8DA8459-5624-87BA-83F3-9B7A28081A62 Resolution No. 2026-078 Page No. 4 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 the Improvement Area 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 rat e and method of apportionment of the proposed special tax, reference is made to the attached and incorporated Exhibit “A” (the “Improvement Area ‘D’ 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 the Improvement Area, 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 the Improvement Area. 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 pur suant to the Improvement Area “D” Rate and Method. This section shall not be construed to limit the levy of a special tax within the Territory to be annexed or territory to be annexed in the future to provide new or additional services beyond those supplied within the existing territory of the District. 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 the District shall not be increased as a result of the annexation of the Territory to the Improvement Area. 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 14, 2026, AT THE HOUR OF 5:00 P.M., IN THE REGULAR MEETING PLACE OF THE LEGISLATIVE BODY, BEING THE COUNCIL CHAMBERS, 276 FOURTH AVENUE, CHULA VISTA, CALIFORNIA, A PUBLIC HEARING WILL BE HELD WHERE THIS LEGISLATIVE BODY WILL CONSIDER THE AUTHORIZATION FOR DESIGNATING IMPROVEMENT AREA “D” AND THE ANNEXATION OF THE TERRITORY TO THE DISTRICT AND THE IMPROVEMENT AREA THERETO, THE PROPOSED RATE AND METHOD OF APPORTIONMENT OF THE SPECIAL TAX TO BE LEVIED WITHIN THE Docusign Envelope ID: B8DA8459-5624-87BA-83F3-9B7A28081A62 Resolution No. 2026-078 Page No. 5 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 DESIGNATION OF THE IMPROVEMENT AREA AND 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 DESIGNATION OF THE IMPROVEMENT AREA AND THE 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 PRI OR TO THE TIME FIXED FOR THE PUBLIC HEARING. WRITTEN PROTESTS MAY BE WITHDRAWN IN WRITING 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 the Improvement Area 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 the Improvement Area 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 designation of the Improvement Area or the annexation of the Territory to the Improvement Area of the District in the future and such protests are not withdrawn so as to reduce the protests to 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 designation of the Improvement Area and 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 take effect immediately upon its adoption. Docusign Envelope ID: B8DA8459-5624-87BA-83F3-9B7A28081A62 Resolution No. 2026-078 Page No. 6 Presented by Approved as to form by Roy Sapa’u Marco A. Verdugo Deputy City Manager/Director of Development City Attorney Services PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 19th day of May 2026 by the following vote: AYES: Councilmembers: Chavez, Fernandez, Inzunza, 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. 2026-078 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 19th day of May 2026. Executed this 19th day of May 2026. Kerry K. Bigelow, MMC, City Clerk Docusign Envelope ID: B8DA8459-5624-87BA-83F3-9B7A28081A62 Resolution No. 2026-078 Page No. 7 EXHIBIT “A” IMPROVEMENT AREA “D” OF COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT), OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA Rate and Method of Apportionment of Special Taxes Docusign Envelope ID: B8DA8459-5624-87BA-83F3-9B7A28081A62 Resolution No. 2026-078 Page No. 8 Rate and Method of Apportionment of Special Tax City of Chula Vista Community Facilities District No. 97-2 (PRESERVE MAINTENANCE DISTRICT) Improvement Area D 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 Improvement Area D of the CFD and collected each Fiscal Year commencing with Fiscal Year 2025-2026 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 Improvement Area D 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 Acreage of a Parcel shall be calculated to the nearest one-hundredth (1/100) of an acre. The square footage of an Assessor's Parcel is equal to the Acreage multiplied by 43,560. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the actual or estimated costs incurred by the City, acting for and on behalf of the CFD as the administrator thereof, to determine, levy and collect the Special Taxes, including salaries of City employees and a proportionate amount of the City’s general administrative overhead related thereto, and the fees of consultants and legal counsel providing services related to the administration of the CFD; the costs of collecting installments of the Special Taxes; and any other costs required to administer Area D 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. "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. "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. Docusign Envelope ID: B8DA8459-5624-87BA-83F3-9B7A28081A62 Resolution No. 2026-078 Page No. 9 "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Improvement Area D" or "Area D" means Improvement Area D of the CFD, as identified on the boundary map for the CFD as amended from time to time. “Initial Maintenance Period” means a minimum period of five (5) Fiscal Years commencing with Fiscal Year 2026-2027 until the Fiscal Year in which the City formally accepts the public improvements associated with Improvement Area D, for ongoing long-term management and periodic costs. During this period, the Special Tax may be levied at a reduced level, as determined by the City, for the purpose of partially funding maintenance obligations and establishing a Long-Term Management Reserve Fund to support long-term management costs. "Long-Term Management Plan" means the “Eastlake Storage Mitigation Project Long-Term Management Plan” dated June 2025, prepared for the mitigation site located within the Salt Creek riparian corridor in the Otay Ranch Preserve (the “Mitigation Site”), "Long-Term Management Program" means the perpetual management, maintenance, monitoring, reporting, and adaptive management activities required to be performed pursuant to the applicable Long- Term Management Plan, including but not limited to, invasive species control, trash removal, site access control, biological monitoring, reporting, and as-needed remedial or adaptive management actions necessary to ensure the long-term sustainability, habitat function, and regulatory compliance of preserve and mitigation areas following completion of Initial Maintenance Period and monitoring requirements. "Long-Term Management Fund Requirement" means, for any Fiscal Year, an amount equal to the Improvement Area D’s fair share of the budgeted costs of the Long -Term Management Program. Each Improvement Area’s “fair share” shall be based on its proportionate benefit, acreage, or other allocation methodology as determined in accordance with the applicable Rate and Method of Apportionment. “Long-Term Management Reserve Fund” means, fund established and maintained by the CFD to accumulate amounts over time to pay for periodic, non-annual, and as-needed costs of the Long-Term Management Program that are not incurred on an annual basis, including, without limitation, adaptive management measures, remedial actions, revegetation, increased monitoring, repair or replacement of site improvements, to the extent such costs are identified in the Long -Term Management Plan as occurring on a periodic or as-needed basis. “Long-Term Management Reserve Fund Requirement” means, for any Fiscal Year, the amount determined by the CFD Administrator to be deposited into the Long-Term Management Reserve Fund, based on the annualized costs of periodic and non -annual activities identified in the Long-Term Management Plan, such that sufficient funds are available when such costs are incurred. "Management Fund" means a fund that shall be maintained within the CFD for each Fiscal Year to pay the costs of the Long-Term Management Program for the Mitigation Site, including ongoing management, maintenance, monitoring, reporting, and adaptive management activities, together with applicable Administrative Expenses. "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. "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 D to fund the Special Tax Requirement. "Special Tax Requirement" means for any Fiscal Year for Area D the amount required to be levied in such Fiscal Year to: (i) pay the Long-Term Management Fund Requirement; (ii) pay any amounts required to establish or replenish the Long-Term Management Reserve Fund to the Long-Term Management Reserve Fund Requirement; (iii) Administrative Expenses; and (iv) pay for reasonably anticipated Docusign Envelope ID: B8DA8459-5624-87BA-83F3-9B7A28081A62 Resolution No. 2026-078 Page No. 10 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 D of the CFD that are not exempt from the Special Tax pursuant to law or as defined below. B. Assignment to Categories of Special Tax Each Fiscal Year, using the definitions above, all property within Improvement Area D of the CFD shall be classified as Taxable Property or Exempt Property. Taxable Property shall be subject to Special Taxes pursuant to Sections C and D below. C. Maximum Special Tax Rate Taxable Category The Maximum Special Tax for Fiscal Year 2025-2026 are the rates set forth in Table 1 below. TABLE 1 Maximum Special Tax Community Facilities District No. 97-2 Improvement Area D (Fiscal Year 2025-2026) Long Term Management Fund Requirement Long Term Management Reserve Fund Requirement & Administrative Expenses Total Long-Term Management Program Costs $990 / acre $473 / acre $1,463 / 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, and any property that is otherwise exempt from the levy of special taxes pursuant to Government Code Section 53340(c) (“Exempt Category”). 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 D, shall be increased each Fiscal Year beginning in Fiscal Year 2026- 2027 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 During the Initial Maintenance Period During the Initial Maintenance Period, the Special Tax shall be levied at a reduced level, as Docusign Envelope ID: B8DA8459-5624-87BA-83F3-9B7A28081A62 Resolution No. 2026-078 Page No. 11 determined annually by the City, sufficient to fund a portion of the Special Tax Requirement and to establish and build the Long-Term Management Reserve Fund. The City shall determine the percentage of the Maximum Special Tax to be levied each Fiscal Year during the Initial Maintenance Period based on anticipated future maintenance costs, required reserve levels, and annual Administrative Expenses, provided the Special Tax during the Initial Maintenance Period shall not exceed the Special Tax Requirement each Fiscal Year. The Special Tax shall be apportioned to Parcels in accordance with the methodology set forth in Steps 1 through 3 below, after applying such reduced levy. Following the Initial Maintenance Period Commencing in the first Fiscal Year following the Initial Maintenance Period, the Special Tax shall be levied up to the full amount necessary to fund the Special Tax Requirement and shall be apportioned to Parcels in accordance with Steps 1 through 3 below. Step 1: Determine the maximum revenue that could be generated by applying the Maximum Special Tax rates set forth in Table 1 (as such rates may be annually escalated pursuant to Section C) to all Parcels. Step 2: If the total revenue calculated in Step 1 is greater than the Special Tax Requirement for Improvement Area D, reduce the Special Tax for each Parcel proportionately so that the total Special Tax levy for the Fiscal Year is equal to the Special Tax Requirement. Step 3: In the event that the Special Tax Requirement for Improvement Area D includes amounts attributable to delinquent Special Taxes from the prior Fiscal Year, the City shall determine the amount of such delinquent Special Taxes and may identify the Parcels and owners associated with such delinquencies. To the extent permitted by law, the City may levy and collect such delinquent amounts from the applicable Parcels and/or owners. Any remaining portion of the Special Tax Requirement shall be allocated and levied in accordance with Steps 1 through 2 above. Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor’s Parcel 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 D 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 errors. 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 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 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 to all persons. Docusign Envelope ID: B8DA8459-5624-87BA-83F3-9B7A28081A62 Resolution No. 2026-078 Page No. 12 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 D of the CFD or as otherwise determined appropriate by the CFD Administrator. G. Term of Special Tax Taxable Property in Improvement Area D of the CFD shall remain subject to the Special Tax in perpetuity. Attachment A Description of Long-Term Management Plan Implement the monitoring, maintenance, reporting, and adaptive management activities required under the Long-Term Management Plan for the Salt Creek Mitigation Site including but not limited to, invasive species control, trash removal, site access control, biological monitoring, reporting, and as-needed remedial or adaptive management actions necessary to ensure the long -term sustainability, habitat function, and regulatory compliance of preserve and mitigation areas following completion of initial mitigation and monitoring requirements. The activities described above are limited to those discrete tasks identified in the Long -Term Management Plan and are intended to ensure the long-term sustainability and ecological function of the Mitigation Site in perpetuity following completion of initial mitigation and monitoring requirements. Docusign Envelope ID: B8DA8459-5624-87BA-83F3-9B7A28081A62