1 RESOLUTION NO. 2022-
RESOLUTION OF INTENTION OF THE CITY COUNCIL OF
THE CITY OF FONTANA WITH RESPECT TO
ESTABLISHMENT OF PROPOSED COMMUNITY
FACILITIES DISTRICT NO. 110M OF THE CITY OF
FONTANA, COUNTY OF SAN BERNARDINO, STATE OF
CALIFORNIA
WHEREAS, the City Council of the City of Fontana (the "City Council") has received a written petition signed by the owners of certain real property within the City of Fontana (the “City”) requesting that the City Council institute proceedings for the establishment of a community facilities district pursuant to Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the "Mello -Roos Community Facilities Act of 1982," (the "Act") for the purposes of financing certain services which are necessary to meet increased demands placed upon the City as a result of the dev elopment of said real property. This proposed community facilities district shall hereinafter be referred to as Community Facilities District No. 110M of the City of Fontana (the “District”); and
WHEREAS, Sections 53313(d), (e), and (g) of the Act provide that a community facilities district may pay the costs of maintenance of services provided to a project of new residential development in the City, including but not limited to street lighting , landscaping, park maintenance, detention basin/water quality systems, and open space within and surrounding the area of the District, mailboxes located within the District owned by the City with an estimated useful life of five or more years, the costs associated with the determination of the amount and collection of taxes, and the costs incurred to carry out the authorized purposes of th e community facilities district, and the costs associated with the maintenance and operation of real property or other tangible property with an estimated useful life of five or more years that is owned by the City; and
WHEREAS, pursuant to Section 53320 of the Act, the City Council is required upon receiving such petition to adopt a resolution of intention to establish a community facilities district;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fontana, as follows:
Section 1. Sufficiency of Petition . The City Council hereby determines that the petition received from the owners of all of the property in the proposed District as authorized by Section 53318 of the Act is sufficient to mandate commencement of proceedings District.
2 Section 2. Proposed District . The District is proposed to be established under the terms of the Act. The name proposed for the community facilities district is “Community Facilities District No. 110M of the City of Fontana, County of San Bernardino, State of California.”
Section 3. Description and Map of Boundari es. The boundaries of the proposed District are described in Exhibit “A” attached hereto, and are also shown on the map entitled “Proposed Boundaries of Community Facilities District No. 110M of the City of Fontana, County of San Bernardino, State of Cali fornia,” which 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 orig inal of said map in her office, and not later than 15 days prior to the date of the public hearing set forth in Section 10 hereof shall file a copy of said boundary map with the County Recorder of the County of San Bernardino.
Section 4. Types of Servi ces; Inci dental Expenses . The District shall finance the costs of maintenance of services provided to a project of new residential development, including street lighting, landscaping, park maintenance , detention basins/water quality systems, and open space facilities within and surrounding the area of the District, mailboxes located within the District owned by the City with an estimated useful life of five or more years, and the costs associated with the determination of the amount, levy and collection of special taxes, which are levied to provide such services, the costs associated with the creation of the District, and the costs incurred to carry out the authorized purposes of the District. It is the intention of this City Council to finance services that are in a ddition to those provided in or required for the territory within the District and will not be replacing services already available.
“Maintenance” means the furnishing of services and materials for the ordinary and usual maintenance, operation a nd servic ing of such street lighting, landscaping, parks, detention basins/water quality systems, open space facilities, mailboxes, and the incidental costs related thereto, but not limited to:
a) Repair, removal, or replacement of all or any part of any improvement.
b) Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury.
c) The removal of trimmings, rubbish, debris, and other solid waste.
d) The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti.
Section 5. Special Taxes . Except where funds are other wise available, special taxes sufficient to pay the costs of services specified in Section 4 ab ove of the proposed District, and the annual admin istrative expenses of the City and the proposed 3 District in determining, apportioning, levying and collecting such special taxes, secured by recordation of continuing lien against all non -exempt real prop erty in the District, shall be annually levied within the proposed District. Pursuant to Section 53340 of the California Government Code, the special taxes shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes. The rates and method of apportionment of said special taxes to be levied on parcels of taxable property i n the pro posed District to pay for the services specified in Section 4 above, and such other expenses and costs, shall be as set forth in Exhibit "B" attached hereto and by this reference made a part hereof.
Section 6. Exempt Properties . Pursuant to Sec tion 5334 0 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 of the proposed community facilities district , unless the entity is a land owner within the meaning of Section 53317(f) of the Act.
Section 7. Necessity. The City Council finds that the services described in Section 4 hereof are neces sary to meet increased demands placed upon the City as a result of new development occurring within the boundaries of the proposed District.
Section 8. Repayment of Funds Advanced or Work -in-Kind. 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 r esolution, 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.
Section 9. Prohibition of Owner Contracts. 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 community facilities district to enter into a contract in accordance wit h subdivision (a) of that section, and that such owners shall not be permitted to elect to perform any work or services or enter into a written contract with the City for the performance of such work or services pursuant to said Section 53329.5.
Section 10. Hearing. A public hearing on the formation of the proposed District shall be held at 7:00 p.m. on September 13, 2022, in the City Council Chambers at the City Hall, 8353 Sierra Avenue, Fontana, California.
Section 11. Notice. The City Clerk shall publis h a notice of the time and place of said hearing as required by Section 53322 of the Act, and shall 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 pr escribed by Section 53322.4 of the Act .
Said notice shall be published at least seven (7) days and mailed at least 15 days 4 before the date of the hearing, and shall contain the information required by said Section 53322.
Section 12. Reports. The officers of the City who are responsible for providing the services to be financed by the proposed District, as set forth in Section 4 hereof, if it is established, are hereby directed, pursuant to the requirements of Section 53321.5 of the Act, to study the pro posed District and, at or before the time of said hearing, file a report with the City Council containing a brief description of the services by type and an estimate of the cost of providing those services and the 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 Section 10 hereof.
Section 13. Description of Voting Procedures . The voting procedures to be followed in conducting the consolidated special ele ctions o n (i) the proposition with respect to the levy of special taxes on parcels of taxable property within the District to pay the annual costs of the services described in Section 4 hereof , and (ii) the proposition with respect to the establishment of an appropriations limit for the District in the amount of $1,000,000, if the District is estab lished and such consolidated special elections (the "consolidated special elections") are held, shall be as follows:
(a) If at least 12 persons have been r egistered to vote within the territory of the proposed District for each of the 90 days preceding the close of the public hearing, the vote in the consolidated special elections shall be by the registered voters of the District with each voter having one vote. In that event, the consolidated special elections shall be conducted by the City Clerk, and shall be held on a date selected by the City Council in conformance with the provisions of Section 53326 of the Act and pursuant to the provisions of the Calif ornia Elections Code governing elections of cities, insofar as they may be applicable, and pursuant to said Section 53326 the ballots for the consolidated special elections shall be distributed to the qualified electors of the District by mail with return postage prepaid or by personal service, and the consolidated special elections shall be conducted as a mail ballot election.
(b) If 12 persons have not been registered to vote within the territory of the District for each of the 90 days preceding the clo se of th e public hearing, pursuant to Section 53326 of the Act, the vote is therefore to be by the landowners of the District, with each landowner of record at the close of the public hearing having one vote for each acre or portion of an acre of land that he or s he o wns within the District, the consolidated special elections shall be conducted by the City Clerk as follows:
(1) The consolidated special elections shall be held on the earliest date, following the adoption by the City Council of the resoluti on of fo rmation establishing the District pursuant to Section 53325.1 of the Act, and a resolution pursuant to Section 53326 of the Act submitting the propositions with respect to (i) the levy of special taxes to pay the costs of services provided by the District, and (ii) the establishment of an appropriations limit therefor e to the qualified electors of the district, upon which such elections can be held pursuant to said 5 Section 53326 which may be selected by the City Council, or such earlier date as the owners of land within the community facilities district and the City Clerk agree and concur is acceptable.
(2) Pursuant to said Section 53326, the consolidated special elections may be held earlier than 90 days following the close of the public hearing if the qualified electors of the District waive the time limits for conducting the elections set forth in said Section 53326 by unanimous written consent and the City Clerk concurs in such earlier election date as shall be consented to by the qualified electors.
(3) Pursuant to said Section 53326, ballots for the consolidated special elections shall be distributed to the qualified electors by the City Clerk by mail with return postage prepaid, or by personal service.
(4) Pursuant to applicable sections o f the Ca lifornia Elections Code governing the conduct of mail ballot elections of cities, and specifically Division 4 (commencing with §4000) of the California Elections Code with respect to elections conducted by mail, the City Clerk shall mail to each qu alified elector an official ballot in a form specified by the City Council in the resolution calling and consolidating the consolidated special elections, and shall also mail to all such qualified electors a ballot pamphlet and instructions to voter, inclu ding a s ample ballot identical in form to the official ballot but identified as a sample ballot, a statement pursuant to Section 9401 of said code, an impartial analysis by the City Attorney pursuant to Section 9280 of said code with respect to the ballot propositions contained in the official ballot, arguments and rebuttals, if any, pursuant to Sections 9281 to 9287, inclusive, and 9295 of said code, a return identification envelope with prepaid postage thereon addressed to the City Clerk for the return of voted official ballots, and a copy of the resolution of formation establishing the District, adopted by the City Council pursuant to Section 53325.1 of the Act, and the exhibits thereto; provided, however, that such analysis and arguments may be waived wi th the u nanimous consent of all the landowners, and in such event a finding regarding such waivers shall be made in the resolution adopted by the City Council calling the consolidated special elections.
(5) The official ballot to be mailed by the City Cl erk to e ach landowner-voter shall have printed or typed thereon the name of the landowner-voter and the number of votes to be voted by the landowner -voter and shall have appended to it a certification to be signed by the person voting the official ballot w hich sha ll c ertify that the person signing the certification is the person who voted the official ballot, and if the landowner -voter is other than a natural person, that he or she is an officer of or other person affiliated with the landowner-voter entitle d to vot e such official ballot, that he or she has been authorized to vote such official ballot on behalf of the landowner -voter, that in voting such official ballot it was his or her intent, as well as the intent of the landowner-voter, to vote all votes to which the landowner-voter is entitled based 6 on its land ownership on the propositions set forth in the official ballot as marked thereon in the voting square opposite each such proposition, and further certifying as to the acreage of the landowner -voter's land ownership within the District.
(6) The return identification envelope delivered by the City Clerk to each landowner -voter shall have printed or typed thereon the following: (i) the name of the landowner, (ii) the address of the landowner, (iii) a declaration under penalty of perjury stating that the voter is the landowner or the authorized representative of the landowner entitled to vote the enclosed ballot and is the person whose name appears on the identification envelope, (iv) the printed name and signature of the voter, (v) the address of the voter, (vi) the date of signing and place of execution of said declaration, and (vii) a notice that the envelope contains an official ballot and is to be opened only by the City Clerk.
(7) The instruction to vot er form to be mailed by the City Clerk to the landowner-voters shall inform them that the official ballots shall be returned to the City Clerk properly voted as provided thereon and with the certification appended thereto properly completed and sig ned in t he s ealed return identification envelope with the certification thereon com pleted and signed and all other information to be inserted thereon properly inserted by 7:00 p.m. on the date of the election.
(8) Upon receipt of the return identificati on envel opes which are returned prior to the voting deadline on the date of the elections, the City Clerk shall canvass the votes cast in the consolidated special elections, and shall file a statement with the City Council immediately after the elections as to the results of such canvass and the election on each propo sition set forth in the official ballot.
The procedures set forth in this Section for conducting the consolidated special elections, if they are held, may be modified as the City Council may determine to be necessary or desirable by a resolution subsequently adopted by the City Council.
7 APPROVED AND ADOPTED this 26th day of July 2022.
READ AND APPROVED AS TO LEGAL FORM:
________________________________
City Attorney
I, Tonia Lewis, City Clerk of the City of Fontana, and Ex-Officio Clerk of the City Council do hereby certify that the foregoing resolution is the actual resolution duly and regularly adopted by the City of Fontana at a regular meeting on the 26th day of July 2022, by the following vote to wit:
AYES:
NOES:
ABSENT:
________________________________
City Clerk of the City of Fontana
________________________________
Mayor of the City of Fontana
ATTEST:
________________________________
City Clerk
EXHIBIT A
LEGAL DESCRIPTION
COMMUNITY FACILITIES DISTRICT NO. 110M
OF THE CITY OF FONTANA,
COUNTY OF SAN BERNARDINO,
STATE OF CALIFORNIA
Legal Description:
The proposed boundary of Community Facilities District No. 110M of the City of Fontana, County of San Bernardino, State of California, described as follows:
Lot 70 of Etiwanda Vineyards, as per map recorded in Book 17, page 29 of maps, in the office of the county recorder of said county , all within Section 1, Township 1 South, Range 6 West, San Bernardino Meridian, described as follows:
Beginning at the intersection of the centerline of Miller Avenue (formerly Minnesota Avenue), per said map within the centerline of Lime Avenue (formerly Malada Street), per said map, said intersection being the northeast corner of said lot 70, thence south 00°01’17” east along the centerline of Lime Avenue , a distance of 331.03 feet; thence North 89°58’39” west along the southerly line said lot 70 a distance of 659.70 feet to the southwest corner of lot 70; then ce north 00 °00’07” west along the west line of lot 70 a distance of 330.63 feet to the centerline of Miller Avenue also being the northwest corner of said lot 70; thence north 89°59’18” east along the centerline of Miller Avenue a distance of 659.59 feet to the point of beginning.
Containing 5.01 acres more or less.
EXHIBIT B
RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 110M OF THE
CITY OF FONTANA, COUNTY OF SAN BERNARDINO,
STATE OF CALIFORNIA
A special tax shall be levied on and collected in the Community Facilities District No. 110M of the City of Fontana, County of San Bernardino, State of Califo rnia ("CFD No. 110M") each Fiscal Year, in an amount determined through the application of the rate and method of apportionment described below. The amount of the special tax to be levied on taxable property in CFD No. 110M in any fiscal year shall be determin ed by the City Council of the City of Fontana acting in its capacity as the legislative body of CFD No. 110M. All of the taxable property in CFD No. 110M, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent an d in t he 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 Asse ssor’s Parcel M ap, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded parcel map.
"Act" means the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Govern ment Code of th e State of California.
"Administrative Expenses" means all ordinary and necessary co sts and expenses o f t he C ity in administering CFD No. 110M, as allowed by the Act, which shall include, without limitation the following: the costs of comp uting the Special Taxes and preparing the annual Special Tax collection schedules; the costs of collecting the Special Taxes; the costs of the City or its designee related to any appeal or legal action related to the Special Taxes; and an allocable share of the salaries of the City staff and City overhead directly related to the foregoing.
Administrative Expenses shall also include amounts advanced by the City for any other administrative purposes of the CFD No. 110M, including the costs related to pursuing foreclosure of Taxable Property for delinquent Special Taxes.
"Assessor’s 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 County Assessor of the County of San Bernardino designating parcels by Assessor’s Parcel number.
"Assigned Special Ta x" means the Special Tax for each Assessor’s Parcel of Developed Property or Undeveloped Property, as determined by reference to Table 1 of Section C below.
"City" means the City of Fontana, California.
"City Manager" means the City Manager of the City or his/her designee.
"Council" means the City Council of the City of Fontana, acting as the legislative body of CFD No. 110M.
"County" means the County of San Bernardino.
"Developed Property" means, for each Fiscal Year, all Assessor’s Parcels of Taxable Property for which a fi nal tract map, parcel map, lot line adjustment or any other similar map which subdivides such parcels into lots for which a building permit could b e issued for construction of one or more residential dwelling units has been recorded with the County.
"Fiscal Year" means the period starting July 1 and ending on the following June
30. "Initial Assigned Special Tax" means the Assigned S pecial Tax for an Assessor’s Parcel for the first Fiscal Year following its designation as Developed Property.
"Land Use Class" means any of the classes listed in Table 1 below.
"Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C, that can be levied by CFD No. 110M in any Fiscal Year.
"Open Space Property" means for an y Fiscal Year, any Assessor’s Parcel, or portion of an Assessor’s Parcel or on any final tract map, parcel map, lot line adjustment or any other similar map which subdivides property.
"Public Property" means any property within the boundaries of CFD No. 110M that is owne d by the federal government, State of California or other governmental entity.
"Residential Property" means an Assessor’s Parcel used, intended or permitted to be used as a home or dwelling place for one or more families.
"Special Tax" means the special tax to b e levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property, to fund the Special Tax Requirement.
"Special Tax Requirement" means that amount required in any Fiscal Year for CFD No. 110M to: (1) pay the cos ts of mai ntenance of a project of new residential d evelopment, including street lighting, landscaping, detention basins/water quality systems, open space facilities, provide graffiti removal, park maintenance within and surrounding the area of CFD No. 110M, and mai lboxes located within the District owned by the City with an estimated useful life of five or more years, and the costs associated with the determination of the amount, le vy and collection of taxes, and costs incurred to carry out the authorized p urposes of the community facilities di strict, (2) pa y the Administrative Expenses, and (3) pay for anticipated delinquent special taxes (such delinquent special taxes shall be estimated based on the delinquency rate in CFD No. 110M for the previous Fiscal Year).
"Taxable Property" means all of the Assessor’s Parcels within the boundaries of CFD No. 110M which are not exempt from the Special Tax pursuant to law or Section E below.
“Undeveloped Property” means, for each Fiscal Year, all Assessor’s Parcels o f Taxable Property which are not categorized as Developed Property.
B. ASSIGNMENT TO LAND USE CATEGORIES
For each Fiscal Year, commencing with the Fiscal Year in which the City C ouncil determines that the levy of the Special Taxes shall commence, all Tax able Property within CFD No. 110M shall be categorized as either Developed Property or Undeveloped Property, and shall be subject to the Special Tax in accordance with the rate and method of appo rtionment determined pursuant to Sections C and D below.
C. MAXIMUM SPECIAL TAX RATE
1. Developed Property
a. Maximum Special Tax
The Maximum Special Tax for each Assessor’s Parcel classified as Developed Property shall be: $1,355 per Assessor’s Parc el in Fiscal Year 2022-23. The Maximum Special Tax for Develope d
Property shall be subject to an an nual increase of two percent (2%).
b. Initial Assigned Special Taxes
The Fiscal Year 2022-23 Initial Assigned Special Tax for Developed Property is shown below in Table 1.
2. Undeveloped Property
a. Maximum Special Tax
The Maximum Special Tax for each Assessor’s Parcel classified as Undeveloped Property shall be: $1,355 per proposed Assessor’s Parcel in Fiscal Year 2022-23. The Ma ximum Spec ial T ax for Undeveloped Property shall be subject to an annual increase of two percent (2%).
b. Initial Assigned Special Taxes
The Fiscal Year 2022-23 Initial Assigned Special Tax for Undeveloped Property is shown below in Table 1.
TABLE 1
Initial Assigned Special Taxes for
CFD No. 110M (Fiscal Year 2022-23)
Land Use Class
Fiscal Year 2022-23
Assigned Special Tax
Developed Property
Undeveloped Property
$968 per Assessor’s Parcel
$968 per proposed Assessor’s Parcel
c. Increases in Initial Assigned Special Tax
The Initial A ssigned Special Tax i n Table 1 shall be applicable for Fiscal Year 2022-23, and shall increase thereafter, commencing on July 1, 2023, and on each July 1 thereafter according to the actual cost of the Special Tax Requirement of CFD No. 110M. However, in n o case s hall the Assig ned Special Tax exceed the Maximum Special Tax for such Fiscal Year.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2022-23 and for each following Fiscal Year, and prior to the fin al date on which the Cou nty Audi tor will accep t th e levy for inclusion on the ad valorem real property tax roll for such Fiscal Year, the City Manager or designee, shall determine the S pecial Tax Requirement to be collected from Taxable Property in CFD No. 110M in such Fiscal Yea r. The Special Tax sha ll be levied as follows until the amount of the levy equals the Special Tax Requirement.
First: The Special Tax shall be l evied in equal percentages on each Assessor’s Parcel of Developed Property up to 100% of the applicable Assigned Special Tax for such Assessor’s Parcel;
Second: If additional funds are needed to satisfy the Special Tax Requirement after the first step ha s been co mpleted, then the Special Tax shall be levied on each Assessor’s Parce l of Un developed Property up to 100% of the Assigned Special tax for such Assessor’s Parcel;
Third: If additional funds are needed to satisfy the Special Tax Requirement after the first and second steps have been completed, then the Special Tax shall be levied on each Assessor’s Parce l of Dev eloped Propert y in equal percentages from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor’s Parcel;
Fourth: If addit ional funds are needed to satisfy the Special Tax Requirement after the first, second, and third steps have been completed, then the Special Tax shall be levied on each Assessor’s Parcel of Undeveloped Property in equal percentages from the Assign ed Special Tax up to the Maximum Special Tax for each such Assessor’s Parcel.
E. EXEMPTIONS
The City Coun cil shal l not levy a Spec ial T ax on Public Property, except as otherwise provided in Sections 53317.3, 53317.5, and 53340.1 of the Act.
The exemp t status of any property will be determined by the City Manager , or designee, and such determination shall be final.
F. MANNER OF COLLECTION
The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, and the same procedure, sale and li en prio rity in case of delinque ncy as i s provided for ad valorem taxes; provided, however, that the City may collect Special Taxes at a different time or in a different manner i f necessary to meet the financial obligations of CFD No. 110M.
G. DURATION OF SPECIAL TAX LEVIES
All Assesso r’s Parc els of Taxable Pro perty shall continue to be subject to the levy and collection of the Special Tax to satisfy the Special Tax Requirement as long a s the City operates and maintains the street lighting, landscaping, detention basins/water quality systems, and park maintenanc e within and surrounding the area of the District, and mailboxes located within the District owned by the City and for the benefit of the area of the CFD No. 110M.
H. APPEALS
Any property owner cla iming that the amount or applicatio n of the Special Tax is not correct and requesting a refund may file a written notice of appeal with the City Manager, or designee, not later than one calendar year after having paid the Special Tax that is disputed. The City Ma nager, or designee’s, shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and decide the appeal. If the City Manager’s , or designee’s, decision requires the Special Tax be modif ied or c hanged in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor’s Parce l in t he subsequent Fiscal Year(s). Any dispute over the decision of the City Manager, or designee, shall be referred to the Cit y Council and the decision of the City Council shall be final. This procedure shall be exclusive and its exhaustion by any property owner shall be a condition of any legal action by such owner.