RESOLUTION NO. 2024-139
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
FONTANA DECLARING THE RESULTS OF THE SPECIAL
ELECTION WITHIN THE CITY OF FONTANA COMMUNITY
FACILITIES DISTRICT NO. 115M, COUNTY OF SAN
BERNARDINO, STATE OF CALIFORNIA.
WHEREAS, the Cit y Council (the “City Council”) of the City of Fontana (the “City”) has conducted proceedings under and pursuant to the terms of the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311) of Part 1 of Divi sion 2 of Title 5 of the California Government Code (the “Act”) to form the City of Fontana Community Facilities District No. 115M, County of San Bernardino, State of California (“CFD No. 115M”); and
WHEREAS, in connection therewith, the City Council adopted a resolution calling a special election for December 10, 2024 (the “Election Resolution”) , and submitted to the qualified electors of CFD No. 115M the propositions described therein with respect to the annual levy of special taxes on taxable property within CFD No. 115M to pay the costs of certain services to be provided by CFD No. 115M and related expenses and establishing an appropriations limit for CFD No. 115M; and
WHEREAS, a special mail -ballot election has been conducted pursuant to the foregoing; and
WHEREAS, pursuant to the Election Resolution, the City of Fontana City Clerk (the “City Clerk”) was authorized to conduct the special election for CFD No. 115M and act as the election official therefor; and
WHEREAS, the City Council has recei ved a statement from the City Clerk with respect to the canvass of the ballot returned and the result s of the special election , certifying that more than two -thirds of the votes cast upon the propositions submitted to the voters in the special election in CFD No. 115M were cast in favor of all such propositions.
NOW, THEREFORE, BE IT RESOLVED by t he City Council of the City of Fontana, California, as follows:
Section 1. Findings. The above recitals are true and correct and are incorporated herein by t his referenc e, and the City Council finds and determines as follows:
(a) There were no persons registered to vote within the boundaries of CFD No. 115M at the time of the close of the protest hearing on December 10, 2024 , and pursuant to Section 53326 of the Act (“Section 53326”) the vote in the special election for CFD No. 115M was, therefore, by the landowners owning taxable property within 761
Resolution No. 2024-139
CFD No. 115M, with each landowner having one vote for each acre or portion of an acre of land t hat they own within CFD No. 115M which would have been subject to the special tax if levied at the time of the special election; (b) pursuant to Section 53326 of the Act and the Election Resolution, the City Clerk distributed the ballot for the special election to IDIL West Valley Logistics Center, LP, a Delaware limited partnership, the owner of all of the taxable property included within the boundaries of CFD No. 115M (the “Property Owner ”), by mail or personal delivery;
(c) The Property Owner waived the conduct and time limits for holding the special election and the election date pursuant to the Act , and consented to the calling and holding of the special election on December 10, 2024;
(d) The special election has been properly conducted in accordance with all statutory requirements and the provisions of the Election Resolution;
(e) The official ballot was returned by the Property Owner to the City Clerk prior to the hour on the date of the special election specified by the City Council for the return of voted ballots;
(f) The official ballot returned to the City Clerk by the Property Owner voted all votes to which it was entitled in favor of all propositions set forth therein;
(g) More than two -thirds o f the votes cast in the special election on each such proposition were cast in favor thereof, and pursuant to Sections 53328 and 53329 of the Act, all such propositions carried;
(h) The City Council, as the legislative body of CFD No. 115M, is therefore authorized to take the necessary action to have CFD No. 115M annually levy special taxes on taxable property within CFD No. 115M in amounts sufficient to pay the costs of public services to be provided by CFD No. 115M and related expenses; and
(i) An appropriations limit for CFD No. 115M has been established in the amount of $5,000,000.
Section 2 . Declaration of Results . All votes voted in the special election on the propositions with respect to ( a) the annual levy of special taxes on taxable property within CFD No. 115M to pay the costs of the services to be provided by CFD No. 115M and related expenses, and (b) establishing an appropriations limit for CFD No. 115M in the amount of $5,000,000 were voted in favor thereof, and all such propositions carried.
Section 3. Effect of Election. The effect of the results of the special election, as specified in Section 2 hereof, is that the City Council, as the legislative body of CFD No. 115M, is authorized (i) to annually levy special taxes on taxable property within CFD No. 115M in an amount sufficient to pay the costs of the services to be provided by CFD No. 115M and related expenses at the special tax rates and pursuant to the methodology for 762
Resolution No. 2024-139
determining and apportioning such special taxes which are set for th in the Resolution of Formation, and (ii) establish an appropriations limit for CFD No. 115M in the amount of $5,000,000.
Section 4. Notice of Special Tax Lien. The City Clerk shall record a notice of special tax lien with the County Recorder of the County of San Bernardino pursuant to Section 53328.3 of the Act and Section 3114.5 of the California Streets and Highways Code within fifteen days of the date hereof.
Section 5. Effective Date. This Resolution shall take effect immediately from and after the date of its passage and adoption.
APPROVED AND ADOPTED this 10th day of December, 2024.
READ AND APPROVED AS TO LEGAL FORM:
__________________________________
City Attorney
I, Germaine Key, City Clerk of the City of Fontana, California, and Ex-Officio Clerk of the City Council, do hereby certify that the for egoing resolution is the actual resolution duly and regularly adopted by the City Council at a regular meeting held on the 10th day of December 2024, by the following to-wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
_______
City Clerk of the City of Fontana
_______
Mayor of the City of Fontana
ATTEST:
__________________________________
City Clerk
763
ORDINANCE NO. 1964
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FONTANA,
ACTING AS THE LEGISLATIVE BODY OF THE CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 115M, COUNTY OF SAN
BERNARDINO, STATE OF CALIFORNIA, AUTHORIZING THE LEVY OF SPECIAL TAXES IN SUCH COMMUNITY FACILITIES DISTRICT.
WHEREAS, the City Council (the “City Council”) of the City of Fontana (the “City”), California has, among other things, initiated proceedings, held a public hearing, conducted an election , and received a favorable vote from the qualified electors authorizing the levy of special taxes in the City of Fontana Community Facilities District No. 115M, County of San Bernardino, State of California (the “District”), all as authorized pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982, being Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code (the “Act”).
THE CITY COUNCIL OF THE CITY OF FONTANA DOES ORDAIN AS
FOLLOWS:
Section 1. This City Council does, by the passage of this Ordinance, authorize the levy of special taxes on taxable properties located in the District pursuant to that certain Amended and Restated Rate and Method of Apportionment as set forth in Appendix “A” attached hereto and incorporated herein by this reference ( the “Rate and Method”).
Section 2. This City Council, acting as the legislative body of the District, is hereby further authorized, by resolution, to annually determine the special tax to be levied within the District for the then current tax year and all future tax years; provided, however, the special tax to be levied shall not exceed the maximum special tax authorized to be levied pursuant to the Rate and Method.
Section 3. The special taxes herein authorized to be levied , to the extent possible, shall be collected in the same manner as ordinary ad valorem property taxes and shall be subject to the same penalties and the same procedure, sale, and lien priority in any case of delinquency as applicable for ad valorem property taxes; provided, however, the District may, by resolution, elect to collect the special taxes at a different time or in a different manner if necessary to meet its financial obligations.
Section 4. The special taxes authorized to be levied shall be secured by the lien imposed pursuant to Sections 3114.5 and 3115.5 of the California Streets and Highways Code, which lien shall be a continuing lien and shall secure each levy of the special taxes.
The lien of the special tax shall continue in force and effect until the special tax obligation is canceled in accordance with law or until the special tax ceases to be levied by the City Council.
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Ordinance No. 1964
Section 5. This Ordinance shall be effective thirty (30) days after its adoption.
Within fifteen (15) days after its adoption, the City Clerk shall cause this Ordinance , or a summary of it, to be published in a newspaper of general circulation in the City.
APPROVED AND ADOPTED ____ day of ______________, 2024
READ AND APPROVED AS TO LEGAL FORM:
____________________________________________
City Attorney
I, Germaine Key, City Clerk of the City of Fontana, and Ex-Officio Clerk of the City Council, do hereby certify that the foregoing Ordinance is the actual Ordinance adopted by the City Council and was introduced at a regular meeting on the 10th day of December, 2024, and was finally passed and adopted on the _________ day of ________, 20 24 to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
____________________________________
City Clerk of the City of Fontana
_____________________________________
Mayor of the City of Fontana
ATTEST:
______________________________________
City Clerk
765
A-1
APPENDIX A
AMENDED AND RESTATED
RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 115M OF THE
CITY OF FONTANA, COUNTY OF SAN BERNARDINO,
STATE OF CALIFORNIA
A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels of Taxable Property in City of Fontana Community Facilities District No. 115M ("CFD No. 115M") and collected each Fiscal Year, commencing in Fiscal Year 2025 -2026, in an amount determined by the City Council of the City of Fontana, through the application of the Rate and Method of Apportionment as described below. All of the real property in CFD No. 115M, 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 expressed in acres 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, parcel map, condominium plan, or other recorded County map or the land area calculated to the reasonable satisfaction of the CFD Administrator using the boundaries set forth on such map or plan.
"Act" means the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, of Part 1 o f Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 115M, including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the County or otherwise); the costs to the City, CFD No. 115M or any designee thereof of complying with City or CFD No. 115M disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 115M 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 estimated or advanced by the City or CFD No. 115M for any other administrative purposes of CFD No. 115M, including at torney’s fees and other costs related to commencing and pursuing to completion any foreclosure of 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.
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A-2
"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.
“Assessor’s Parcel Number” means that number assigned to an Assessor’s Parcel by the County of San Bernardino for purposes of identification.
"CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, providing for the levy and collection of the Special Taxes, and performing other duties as set forth herein.
“CFD No. 115M” means the City of Fontana Community Facilities District No. 115M.
"City" means the City of Fontana, California.
"Council" means the City Council of the City of Fontana, acting as the legislative body of CFD No. 115M.
"County" means the County of San Bernardino.
"Developed Property" means, for each Fiscal Year, all Assessor’s Parcels of Taxable Property for which a final tract map, parcel map, lot line adjustment or any other similar map which subdivides such parcels into lots for which a building permit could be issued for construction has been recorded with the County, as of January 1 of the previous Fiscal Year.
"Fiscal Year" means the period starting July 1 and ending on the following June 30.
"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 hereof, that can be levied by CFD No. 115M in any Fiscal Year on any Assessor’s Parcel.
“Property Owner Association Property" means, for each Fiscal Year, any Assessor’s Parcel within the boundaries of CFD No. 115M that was owned by or irrevocably offered for dedication to a property owner association, including any master or sub-association, as of January 1 of the previous Fiscal Year.
“Proportionately” means, for Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor’s Parcels of Developed Property.
"Public Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 115M that is (i) owned b y, irrevocably offered or dedicated to the federal government, the State, the County, the City, or any local government or other public agency, provided, however, that any property leased by a public agency to a private entity 767
Ordinance No. 1964
A-3
and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use; or (ii) encumbered by a public utility easement or as a water detention basin making impractical its use for any purpose other than that set forth in the easement.
To ensure t hat property is classified as Public Property in the first Fiscal Year after it is acquired by, irrevocably offered for dedication to, or dedicated 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.
“Rate and Method of Apportionment” means this Amended and Restated Rate and Method of Apportionment of Special Taxes for CFD No. 115M.
"Special Tax" means the special tax to be 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. 115M to pay for: (1 ) maintenance services authorized to be financed by CFD No. 115M, (2) Administrative Expenses, (3) anticipated delinquent special taxes (such delinquent special taxes shall be estimated based on the delinquency rate in CFD No. 115M for the previous Fiscal Year), and (4) less a credit for funds available to reduce the annual Special Tax levy, if any, as determined by the CFD Administrator.
"Taxable Property" means all of the Assessor’s Parcels within the boundaries of CFD No. 115M 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 of Taxable Property which are not categorized as Developed Property.
"Welfare Exemption" means, for each Fiscal Year, any Assessor's Parcel that is used exclusively for charitable, hospital, or religious purposes and that has a property tax welfare exemption as indicated in the County’s assesso r’s roll finalized as of the last preceding January 1, including those Assessor’s Parcel receiving a welfare exemption under subdivision (g) of Section 214 of the California Revenue and Taxation Code.
B. ASSIGNMENT TO LAND USE CATEGORIES
For each Fiscal Year, commencing with Fiscal Year 2025 -2026, all Taxable Property within CFD No. 115M 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 apportionment determined pursuant to Sections C and D below.
C. MAXIMUM SPECIAL TAX RATE
1. Developed Property
768
Ordinance No. 1964
A-4
The Fiscal Year 2025 -2026 Maximum Special Tax for each Assessor’s Parcel classified as Developed Property shall be equal to the amount shown in the table below:
TABLE 1
Fiscal Year 2025-2026
Maximum Special Tax for Developed Property
Land Use Class FY 2025-2026 Maximum Special Tax
Developed Property $3,144.29 per Acre
On each July 1, commencing July 1, 2026, the Maximum Special Tax for Developed Property shall increase by two percent (2%) per Fiscal Year.
2. Undeveloped Property
The Maximum Special Tax for each Assessor’s Parcel classified as Undeveloped Property shall be equal to $0 per Acre.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2025 -2026 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement and the City shall provide for the lev y of the Special Tax until the total Special Tax levy equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows:
The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up t o 100% of the Maximum Special Tax for such Assessor’s Parcel.
E. EXEMPTIONS
No Special Tax shall be levied on (i) Public Property, (ii) Property Owner Association Property, (iii) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (iv) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely for public uses, (v) or any Assessor’s Parcel that has a Welfare Exemption. Should an Asse ssor’s Parcel, however, no longer be classified as items (i) -(v) above, including Property Owner Association Property, Public Property, or have a Welfare Exemption, its tax-exempt status will, without the necessity of any action by the Council, terminate.
The exempt status of any property will be determined by the CFD Administrator and such determination shall be final.
F. MANNER OF COLLECTION
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Ordinance No. 1964
A-5
The Special Tax shall 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 lien priority in case of delinquency as is provided for ad valorem property taxes; provided, however, that CFD No. 115M may directly bill the Special Tax, and/or may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of CFD No. 115M.
G. TERM OF SPECIAL TAX
The Special Tax shall be levied in perpetuity as necessary to meet the Special Tax Requirement, unless no longer required to pay for the authorized services as determined at the discretion of the Council.
H. APPEALS
Any landowner or resident who feels that the amount of the Special Tax levied on his/her Assessor’s Parcel is in error may submit a written appeal to the CFD Administrator, provided that the appellant is current in his/her payment of Special Taxes. During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The ap peal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, a cash refund shall not be made (except for the last year of levy), but the amount of the Special Tax levied shall be appropriately modified, reduced, or eliminated through an adjustment to the Special Tax levy in the following Fiscal Year. If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has thirty (30) days in which to appeal to the Council by filing a written notice of appeal with t he City Clerk, provided that the appellant is current in his/her payment of Special Taxes. This second appeal must specify the reasons for its disagreement with the CFD Administrator's determination.
The CFD Administrator shall interpret this Rate and Me thod of Apportionment for purposes of clarifying any ambiguity and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals. Any decision of the CFD Administrator shall be subject to appeal to the Council whose decision shall be final and binding as to all persons.
I. PREPAYMENT
No prepayments of the Special Tax are permitted.
770
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COMMUNITY FACILITIES
DISTRICT REPORT
CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 115M
Report Date: November 18, 2024
771
www.FinanceDTA.com 18201 Von Karman Avenue, Suite 220
Irvine, CA 92612
COMMUNITY FACILITIES DISTRICT REPORT
FOR
CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 115M
Prepared for:
City of Fontana
8353 Sierra Avenue
Fontana, CA 92335
772
TABLE
OF CONTENTS
SECTION
I INTRODUCTION ................................ .............................. 1 II PROJECT DESCRIPTION ................................ ................ 2
III DESCRIPTION AND ESTIMATED COSTS OF PUBLIC
SERVICES ................................ ................................ .......... 3 A Description of Public Services ................................ ......... 3 B Estimated Costs of Public Services ................................ . 3 C Incidental Expenses ................................ ............................ 3 IV RATE AND METHOD OF APPORTIONMENT .............. 4
A Explanation for Special Tax Apportionment ................. 4 B Maximum Special Tax ................................ ........................ 4 C Apportionment of Special Taxes ................................ ..... 4 D Accuracy of Information ................................ ................... 5 V BOUNDARIES OF THE CFD ................................ ............ 6 VI GENERAL TERMS AND CONDITIONS ......................... 7 A Substitution of Facilities and Services ........................... 7 B Appeals and Interpretations ................................ ............. 7 C Prepayment of Special Tax ................................ ............... 7
APPENDICES
APPENDIX A AMENDED AND RESTATED RATE AND
METHOD OF APPORTIONMENT
APPENDIX B BOUNDARY MAP
773
1 SECTION I
INTRODUCTION
City of Fontana October 18, 2024
Community Facilities District No. 115M
www.FinanceDTA.com
I INTRODUCTION
WHEREAS, the City Council of the City of Fontana (hereinafter referred to as the "Council") did, pursuant to the provision of the "Mello -Roos Community Facilities Act of 1982," being Chapter 2.5, Part 1, Division 2 of Title 5 (commencing with Section 53311) of the Government Code of the State of California (hereinafter referred to as the "Act"), and specifically Section 53321.5 thereof, expressly order the filing of a written "Report" with the legislative body of the proposed Community Facilities District(“CFD”). This CFD being City of Fontana CFD No. 115M shall hereinafter be referred to as:
"CFD No. 115M"; and,
WHEREAS, on September 10 , 2024 , Council, pursuant to the Act, adopted a resolution entitled “RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FONTANA DECLARING ITS INTENTION TO ESTABLISH CITY OF FONTANA COMMUNITY FACILITIES DISTRICT NO. 115M, TO AUTHORIZE THE LEVY OF A SPECIAL TAX THEREIN TO FINANCE THE PROVISION OF CERTAIN PUBLIC SERVICES , AND TAKING OTHER ACTIONS THERETO " (hereinafter referred to as the "Resolution of Intention") directing that the Report generally contain the following:
1. A brief description of the services by type that will be required to adequately meet the needs of CFD No. 115M; and
2. An estimate of the fair and reasonable cost of providing the public services and the incidental expenses to be incurred in connection therewith.
WHEREAS, each officer of the City of Fontana (hereinafter referred to as the "City") who is or will be responsible for providing one or more of the proposed types of public services to be financed by CFD No. 115M has hereby directed DTA, Inc. (“DTA”) to study the proposed CFD No. 115M and, at or before the time of the public hearing on the establishment of CFD No. 115M, file the Report with Council pursuant to the provisions of the Resolution of Intention.
NOW, THEREFORE, DTA does hereby submit the Report.
774
2 SECTION II
PROJECT DESCRIPTION
City of Fontana October 18, 2024
Community Facilities District No. 115M
www.FinanceDTA.com
II PROJECT DESCRIPTION
CFD No. 115M encompasses approximately207 gross acres of landwithin the City located near the corner of Locust Avenue and Jurupa Avenue . This property is expected to be developed into a total of 190 non-residential acres subject to a Mello-Roos Special Tax1. 1 Please note that all capitalized terms used herein, unless otherwise indicated, shall have the meanings defined in the Rate and Method of Apportionment for CFD No. 115M. 775
3 SECTION III
DESCRIPTION AND ESTIMATED
COSTS OF PUBLIC SERVICES
City of Fontana October 18, 2024
Community Facilities District No. 115M
www.FinanceDTA.com
III DESCRIPTION AND ESTIMATED COSTS OF PUBLIC SERVICES
A community facilities district may finance any one or more of the following types of services: police protection services, including, but not limited to, criminal justice services, fire protection and suppression services, and ambulance and paramedic services, recreation program services, library services, and the operation and maintenance of museums and cultural facilities, maintenance of parks, parkways and open space, flood and storm protection services, including, but not limited to, the operation and maintenance of storm drainage systems, and sandstorm protection systems, and services with respect to removal or remedial action for the cleanup of any hazardous substance released or threatened to be released into the environment. The authorized services may be financed only to the extent that such services are in addition to those services provided in the community facilities district prior to creation of the community facilities district.
A Description of Public Services
The types of public services to be financed by CFD No. 115M are the maintenance of parks, parkways, street lighting and open space within and surrounding the area of the District and within and surrounding the area of any territory to be annexed to the District in the future.
B Estimated Costs of Public Services
The Special Tax for CFD No. 115M has been established to pay for the public services described aboveat $3,144.29 per Acre of Developed Propertyfor Fiscal Year 2025-2026. This amount shall be subject to an annual increase of two (2%)as specified in Section C.1 of the Amended and Restated Rate and Method of Apportionment (defined herein).
The maximum Fiscal Year 202 5-2026 costs for Maintenance Services is estimated at approximately $596,000, assuming buildout. These costs are expected to be fully funded by CFD No. 115M at buildout.
C Incidental Expenses to be Included in the Annual Levy of Special Taxes Pursuant to Section 53340 of the Act, the proceeds of any special tax may only be used to pay, in whole or part, the costs of providing public facilities, services and incidental expenses. While the actual costs of administeringCFD No. 115M may vary, it is anticipated that the amount of Special Taxes which can be collected will be sufficient to fund at least $ 23,000 in annual administrative expensesfor Fiscal Year 2025-2026, which shall also be subject to an annual increase of two (2%) annually.
776
4 SECTION IV
RATE AND METHOD OF
APPORTIONMENT
City of Fontana October 18, 2024
Community Facilities District No. 115M
www.FinanceDTA.com
IV RATE AND METHOD OF APPORTIONMENT
All of the property located withinCFD No. 115M, unless exempted by law or by theAmended and Restated Rate and Method of Apportionment (defined below), shall be taxed for the purpose of funding public services authorized to be financed byCFD No. 115M. Pursuant to Section 53325.3 of the Act, the tax imposed “is a special tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property.” The special tax “may be based on benefit received by parcels of real property, the costs of making authorized facilities or authorized services available to each parcel or other reasonable basis as determined by the legislative body,” although the special tax may not be apportioned on an ad valorem basis pursuant to Article XIIIA of the California Constitution.
The rate and method of apportionment of the special tax (the "Amended and Restated Rate and Method of Apportionment") proposed to be levied within CFD No. 115M is described in Exhibit C to the Resolution of Intention. This proposed Amended and Restated Rate and Method of Apportionment, also provided herein as Appendix A, provides information sufficient to allow each property owner within CFD No. 115M to estimate the maximum annual Special Tax he or she will be required to pay.
Sections A through D below provide additional information on the Amended and Restated Rate and Method of Apportionment.
A Explanation for Special Tax Apportionment
When a community facilities district is formed, a special tax may be levied on each parcel of taxable property within the community facilities district to pay for the construction, acquisition and rehabilitation of public facilities, to pay for authorized services or to repay bonded indebtedness or other related expenses incurred by a community facilities district.
This special tax must be apportioned in a reasonable manner; however, the tax may not be apportioned on an ad valorem basis.
Based on the types of public services that are proposed forCFD No. 115M, the Special Taxes assigned to Developed Property are generally proportionate to the relative benefits received by them, and, accordingly, the Special Taxes in CFD No. 115M can be considered fair and reasonable.
B Maximum Special Tax
Table 1 within the Amended and RestatedRate and Method of Apportionment lists the Fiscal Year 2025-2026 Maximum Special Tax that may be levied against Developed Property within CFD No. 115M to fund the Special Tax Requirement. On each July 1, commencing July 1, 2026, the Maximum Special Tax shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year. No Special Tax shall be levied on Undeveloped Property, Public Property,or Property Owner Association Property in CFD No. 115M.
777
5 SECTION IV
RATE AND METHOD OF
APPORTIONMENT
City of Fontana October 18, 2024
Community Facilities District No. 115M
www.FinanceDTA.com
C Apportionment of Special Taxes
Each year the Special Tax shall be levied subject to the methodology and Maximum Special Taxes set forth in the Amended and Restated Rate and Method of Apportionment, in an amount sufficient to meet the appropriate special tax requirement.
The amount of the special tax requirement that is apportioned to each parcel is determined through the application of Section D of the Amended and Restated Rate and Method of Apportionment.
D Accuracy of Information
In order to establish the Maximum Special Tax rates for CFD No. 115M as set forth in the Amended and Restated Rate and Method of Apportionment, DTA has relied on information which was provided to DTA by others. DTA has not independently verified such data and disclaims responsibility for the impact of inaccurate data, if any, on the Rate and Method of Apportionment for CFD No. 115M, including the inability to meet the financial obligations within CFD No. 115M.
778
6 SECTION V
BOUNDARIES OF THE CFD
City of Fontana October 18, 2024
Community Facilities District No. 115M
www.FinanceDTA.com
V BOUNDARIES OF THE CFD
The boundaries of CFD No. 115M include all land on which the Special Taxes may be levied.
A reduced scale map showing the boundaries of CFD No. 115M is provided herein as Appendix B. A full-scale map is on file with the City Clerk of the City and was recorded on September 24, 2024, in Book 91 of Maps of Assessment and Community Facilities Districtsat
of San Bernardino.
779
7 SECTION VI
GENERAL TERMS AND
CONDITIONS
City of Fontana October 18, 2024
Community Facilities District No. 115M
www.FinanceDTA.com
VI GENERAL TERMS AND CONDITIONS
A Substitution of Facilities and Services
The descriptions of the public services, as set forth herein, are general in their nature. The City will determine the final nature, location, and costs of services upon the preparation of final plans and specifications. The final plans may show substitutes, in lieu of modifications to the proposed work in order to accomplish the work of improvement, a nd any such substitution shall not be a change or modification in the proceedings as long as the public services provide a service substantially similar to that as set forth in this Report.
B Appeals and Interpretations
Any landowner or resident who feels that the amount of the Special Tax levied on his/her Assessor’s Parcel is in error may submit a written appeal to the CFD Administrator, provided that the appellant is current in his/her payment of Special Taxes. During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, a cash refund shall not be made (except for the last year of levy), but the amount of the Special Tax levied shall be appropriately modified, reduced, or eliminated through an adjustment to the Special Tax levy in the following Fiscal Year. If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has thirty (30) days in which to appeal to the Council by filing a written notice of appeal with the City Clerk, provided that the appellant is current in his/her payment of Special Taxes. This second appeal must specify the reasons for its disagreement with the CFD Administrator's determination.
The CFD Administrator shall interpret this Amended and Restated Rate and Method of Apportionment for purposes of clarifying any ambiguity and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals. Any decision of the CFD Administrator shall be subject to appeal to the Council whose decision shall be final and binding as to all persons.
C Prepayment of Special Tax
Pursuant to Section I of theAmended and Restated Rate and Method of Apportionment, the Special Tax cannot not be prepaid.
780
APPENDIX A
City of Fontana
Community Facilities District No. 115M
AMENDED AND RESTATED
RATE AND METHOD OF
APPORTIONMENT
781
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Community Facilities District No. 115M Page 1
AMENDED AND RESTATED
RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 115M OF THE
CITY OF FONTANA, COUNTY OF SAN BERNARDINO,
STATE OF CALIFORNIA
A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels of Taxable Property in City of Fontana Community Facilities District No. 115M ("CFD No. 115M") and collected each Fiscal Year , commencing in Fiscal Year 2025-2026, in an amount determined by the City Council of the City of Fontana, through the application of the Rate and Method of Apportionment as described below. All of the real property in CFD No. 115M, 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 expressed in acres 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, parcel map, condominium plan, or other recorded County map or the land area calculated to the reasonable satisfaction of the CFD Administrator using the boundaries set forth on such map or plan.
"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.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 115M, including, but not limited to : the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the County or otherwise); the costs to the City, CFD No. 115M or any designee thereof of complying with City or CFD No. 115M disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 115M 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 estimated or advanced by the City or CFD No. 115M for any other administrative purposes of CFD No. 115M, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. 782
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Community Facilities District No. 115M Page 2
"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. “Assessor’s Parcel Number” means that number assigned to an Assessor’s Parcel by the County of San Bernardino for purposes of identification. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, providing for the levy and collection of the Special Taxes, and performing other duties as set forth herein.
“CFD No. 115M” means the City of Fontana Community Facilities District No. 115M.
"City" means the City of Fontana, California.
"Council" means the City Council of the City of Fontana, acting as the legislative body of CFD No. 115M.
"County" means the County of San Bernardino.
"Developed Property" means, for each Fiscal Year, all Assessor’s Parcels of Taxable Property for which a final tract map, parcel map, lot line adjustment or any other similar map which subdivides such parcels into lots for which a building permit could be issued for construction has been recorded with the County , as of January 1 of the previous Fiscal Year.
"Fiscal Year" means the period starting July 1 and ending on the following June
30. "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 hereof, that can be levied by CFD No. 115M in any Fiscal Year on any Assessor’s Parcel.
“Property Owner Association Property" means, for each Fiscal Year, any Assessor’s Parcel within the boundaries of CFD No. 115M that was owned by or irrevocably offered for dedication to a property owner association, including any master or sub-association, as of January 1 of the previous Fiscal Year. 783
City of Fontana November 18, 2024
Community Facilities District No. 115M Page 3
“Proportionately” means, for Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor’s Parcels of Developed Property.
"Public Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 115M that is (i) owned by, irrevocably offered or dedicated to the federal government, the State, the County, the City, or any local government or other public agency, provided, however, that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use; or (ii) encumbered by a public utility easement or as a water detention basin making impractical its use for any purpose other than that set forth in the easement. To ensure that property is classified as Public Property in the first Fiscal Year after it is acquired by, irrevocably offered for dedication to, or dedicated 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.
“Rate and Method of Apportionment” means this Amended and Restated Rate and Method of Apportionment of Special Taxes for CFD No. 115M. "Special Tax" means the special tax to be 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. 115M to pay for: (1) maintenance services authorized to be financed by CFD No. 115M, (2) Administrative Expenses, (3) anticipated delinquent special taxes (such delinquent special taxes shall be estimated based on the delinquency rate in CFD No. 115M for the previous Fiscal Year) , and (4) less a credit for funds available to reduce the annual Special Tax levy , if any, as determined by the CFD Administrator.
"Taxable Property" means all of the Assessor’s Parcels within the boundaries of CFD No. 115M 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 of Taxable Property which are not categorized as Developed Property. "Welfare Exemption" means, for each Fiscal Year, any Assessor's Parcel that is used exclusively for charitable, hospital, or religious purposes and that has a property tax welfare exemption as indicated in the County’s assessor’s roll finalized as of the last preceding January 1 , including those Assessor’s Parcel 784
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Community Facilities District No. 115M Page 4
receiving a welfare exemption under subdivision (g) of Section 214 of the California Revenue and Taxation Code.
B. ASSIGNMENT TO LAND USE CATEGORIES
For each Fiscal Year, commencing with Fiscal Year 2025-2026, all Taxable Property within CFD No. 115M 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 apportionment determined pursuant to Sections C and D below.
C. MAXIMUM SPECIAL TAX RATE
1. Developed Property
The Fiscal Year 2025-2026 Maximum Special Tax for each Assessor’s Parcel classified as Developed Property shall be equal to the amount shown in the table below:
TABLE 1
Fiscal Year 2025-2026
Maximum Special Tax for Developed Property
Land Use Class FY 2025-2026 Maximum Special Tax
Developed Property $3,144.29 per Acre
On each July 1, commencing July 1, 202 6, the Maximum Special Tax for Developed Property shall increase by two percent (2%) per Fiscal Year.
2. Undeveloped Property
The Maximum Special Tax for each Assessor’s Parcel classified as Undeveloped Property shall be equal to $0 per Acre.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2025-2026 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement and the City shall provide for the levy of the Special Tax until the total Special Tax levy equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows:
The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the Maximum Special Tax for such Assessor’s Parcel.
785
City of Fontana November 18, 2024
Community Facilities District No. 115M Page 5
E. EXEMPTIONS
No Special Tax shall be levied on (i) Public Property, (ii) Property Owner Association Property , (iii) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (iv) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely for public uses, (v) or any Assessor’s Parcel that has a Welfare Exemption . Should an Assessor’s Parcel , however, no longer be classified as items (i) -(v) above, including Property Owner Association Property, Public Property , or have a Welfare Exemption, its tax -exempt status will, without the necessity of any action by the Council, terminate.
The exempt status of any property will be determined by the CFD Administrator and such determination shall be final.
F. MANNER OF COLLECTION
The Special Tax shall 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 lien priority in case of delinquency as is provided for ad valorem property taxes; provided, however, that CFD No. 115M may directly bill the Special Tax, and/or may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of CFD No. 115M.
G. TERM OF SPECIAL TAX
The Special Tax shall be levied in perpetuity as necessary to meet the Special Tax Requirement, unless no longer required to pay for the authorized services as determined at the discretion of the Council.
H. APPEALS
Any landowner or resident who feels that the amount of the Special Tax levied on his/her Assessor’s Parcel is in error may submit a written appeal to the CFD Administrator, provided that the appellant is current in his/her payment of Special Taxes. During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, a cash refund shall not be made (except for the last year of levy), but 786
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Community Facilities District No. 115M Page 6
the amount of the Special Tax levied shall be appropriately modified , reduced, or eliminated through an adjustment to the Special Tax levy in the following Fiscal Year. If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has thirty ( 30) days in which to appeal to the Council by filing a written notice of appeal with the City Clerk, provided that the appellant is current in his/her payment of Special Taxes.
This second appeal must specify the reasons for its disagreement with the CFD Administrator's determination.
The CFD Administrator shall interpret this Rate and Method of Apportionment for purposes of clarifying any ambiguity and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals.
Any decision of the CFD Administrator shall be subject to appeal to the Council whose decision shall be final and binding as to all persons.
I. PREPAYMENT
No prepayments of the Special Tax are permitted.
787
APPENDIX B
City of Fontana
Community Facilities District No. 115M
BOUNDARY MAP
788
789
18201 VON KARMAN AVENUE, SUITE 220
IRVINE, CA 926 12
PHONE (800) 969 -4DTA
Public Finance
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Development Economics
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www.FinanceDTA.com
790
Irvine | San Jose | San Francisco | Riverside
Dallas | Houston | Raleigh
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Public Finance
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CHANGES TO RATE AND
METHOD OF APPORTIONMENT
CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 115M
Report Date: November 18, 2024
791
www.FinanceDTA.com 18201 Von Karman Avenue, Suite 220
Irvine, CA 92612
CHANGES TO RATE AND METHOD OF APPORTIONMENT
FOR
CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 115M
Prepared for:
City of Fontana
8353 Sierra Avenue
Fontana, CA 92335
792
TABLE
OF CONTENTS
SECTION
I CHANGES TO RATE AND METHOD ............................ 1
APPENDICES
APPENDIX A AMENDED AND RESTATED RATE AND
METHOD OF APPORTIONMENT
793
1 SECTION I
CHANGES TO RATE AND METHOD
City of Fontana November 18, 2024
Community Facilities District No. 115M
www.FinanceDTA.com
INTRODUCTION
On September 10, 2024, the City Council of the City of Fontana (hereinafter referred to as the "Council"), pursuant to the Act, adopteda resolutionentitled “RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF FONTANA DECLARING ITS INTENTION TO ESTABLISH CITY OF FONTANA COMMUNITY FACILITIES DISTRICT NO. 115M, TO AUTHORIZE THE LEVY OF A
SPECIAL TAX THEREIN TO FINANCE THE PROVISION OF CERTAIN PUBLIC SERVICES , AND TAKING OTHER ACTIONS THERETO " (hereinafter referred to as the "Resolution of Intention").
Since the adoption of the Resolution of Intention as mentioned above, the Rate and Method of Apportionment (the “RMA”) for Community Facilities District No.115M has been modified.
Pursuant to Section 53325 of the California Government Code, as the revisions may result in increases to the probable special tax paid by the owners of lots or parcels in Community Facilities District (“CFD”) No. 115M, DTA has been directed to prepare this report describing the modifications.
DESCRIPTION OF CHANGES TO RATE AND METHOD OF APPORTIONMENT The Special Taxfor CFD No. 115Mwas originally establishedat an amount equal to$2,992.52 per Acre of Developed Property for Fiscal Year 2025 -2026 to pay for public services. The fiscal year 2025-2026 Assigned Special Tax for Developed Propertyhas now been increased from $2,992.52 per acre to $3,144 .29 per acre. The special tax rate was increased due to a decrease in the estimated number of taxable acres that will remain at build out of CFD No. 115M.
The new special tax of $3,144.29 per acre as indicated above shall be subject to an annual increase of two (2%) as specified in Section C. 1 of the Amended and Restated Rate and Method of Apportionment. The Amended and RestatedRate and Method of Apportionment, also provided herein as Appendix A, provides information sufficient to allow each property owner within CFD No. 115M to estimate the maximum annual Special Tax he or she will be required to pay.
In addition, the definition of Public Property in the RMA was modified to provide for an exemption from the special tax for any property to be used as a water detention basin. No other changes were made to the RMA.
794
APPENDIX A
City of Fontana
Community Facilities District No. 115M
AMENDED AND RESTATED
RATE AND METHOD OF
APPORTIONMENT
795
City of Fontana November 18, 2024
Community Facilities District No. 115M Page 1
AMENDED AND RESTATED
RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 115M OF THE
CITY OF FONTANA, COUNTY OF SAN BERNARDINO,
STATE OF CALIFORNIA
A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels of Taxable Property in City of Fontana Community Facilities District No. 115M ("CFD No. 115M") and collected each Fiscal Year , commencing in Fiscal Year 2025-2026, in an amount determined by the City Council of the City of Fontana, through the application of the Rate and Method of Apportionment as described below. All of the real property in CFD No. 115M, 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 expressed in acres 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, parcel map, condominium plan, or other recorded County map or the land area calculated to the reasonable satisfaction of the CFD Administrator using the boundaries set forth on such map or plan.
"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.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 115M, including, but not limited to : the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the County or otherwise); the costs to the City, CFD No. 115M or any designee thereof of complying with City or CFD No. 115M disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 115M 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 estimated or advanced by the City or CFD No. 115M for any other administrative purposes of CFD No. 115M, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. 796
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"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. “Assessor’s Parcel Number” means that number assigned to an Assessor’s Parcel by the County of San Bernardino for purposes of identification. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, providing for the levy and collection of the Special Taxes, and performing other duties as set forth herein.
“CFD No. 115M” means the City of Fontana Community Facilities District No. 115M.
"City" means the City of Fontana, California.
"Council" means the City Council of the City of Fontana, acting as the legislative body of CFD No. 115M.
"County" means the County of San Bernardino.
"Developed Property" means, for each Fiscal Year, all Assessor’s Parcels of Taxable Property for which a final tract map, parcel map, lot line adjustment or any other similar map which subdivides such parcels into lots for which a building permit could be issued for construction has been recorded with the County , as of January 1 of the previous Fiscal Year.
"Fiscal Year" means the period starting July 1 and ending on the following June
30. "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 hereof, that can be levied by CFD No. 115M in any Fiscal Year on any Assessor’s Parcel.
“Property Owner Association Property" means, for each Fiscal Year, any Assessor’s Parcel within the boundaries of CFD No. 115M that was owned by or irrevocably offered for dedication to a property owner association, including any master or sub-association, as of January 1 of the previous Fiscal Year. 797
City of Fontana November 18, 2024
Community Facilities District No. 115M Page 3
“Proportionately” means, for Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor’s Parcels of Developed Property.
"Public Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 115M that is (i) owned by, irrevocably offered or dedicated to the federal government, the State, the County, the City, or any local government or other public agency, provided, however, that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use; or (ii) encumbered by a public utility easement or as a water detention basin making impractical its use for any purpose other than that set forth in the easement. To ensure that property is classified as Public Property in the first Fiscal Year after it is acquired by, irrevocably offered for dedication to, or dedicated 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.
“Rate and Method of Apportionment” means this Amended and Restated Rate and Method of Apportionment of Special Taxes for CFD No. 115M. "Special Tax" means the special tax to be 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. 115M to pay for: (1) maintenance services authorized to be financed by CFD No. 115M, (2) Administrative Expenses, (3) anticipated delinquent special taxes (such delinquent special taxes shall be estimated based on the delinquency rate in CFD No. 115M for the previous Fiscal Year) , and (4) less a credit for funds available to reduce the annual Special Tax levy , if any, as determined by the CFD Administrator.
"Taxable Property" means all of the Assessor’s Parcels within the boundaries of CFD No. 115M 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 of Taxable Property which are not categorized as Developed Property. "Welfare Exemption" means, for each Fiscal Year, any Assessor's Parcel that is used exclusively for charitable, hospital, or religious purposes and that has a property tax welfare exemption as indicated in the County’s assessor’s roll finalized as of the last preceding January 1 , including those Assessor’s Parcel 798
City of Fontana November 18, 2024
Community Facilities District No. 115M Page 4
receiving a welfare exemption under subdivision (g) of Section 214 of the California Revenue and Taxation Code.
B. ASSIGNMENT TO LAND USE CATEGORIES
For each Fiscal Year, commencing with Fiscal Year 2025-2026, all Taxable Property within CFD No. 115M 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 apportionment determined pursuant to Sections C and D below.
C. MAXIMUM SPECIAL TAX RATE
1. Developed Property
The Fiscal Year 2025-2026 Maximum Special Tax for each Assessor’s Parcel classified as Developed Property shall be equal to the amount shown in the table below:
TABLE 1
Fiscal Year 2025-2026
Maximum Special Tax for Developed Property
Land Use Class FY 2025-2026 Maximum Special Tax
Developed Property $3,144.29 per Acre
On each July 1, commencing July 1, 202 6, the Maximum Special Tax for Developed Property shall increase by two percent (2%) per Fiscal Year.
2. Undeveloped Property
The Maximum Special Tax for each Assessor’s Parcel classified as Undeveloped Property shall be equal to $0 per Acre.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2025-2026 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement and the City shall provide for the levy of the Special Tax until the total Special Tax levy equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows:
The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the Maximum Special Tax for such Assessor’s Parcel.
799
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E. EXEMPTIONS
No Special Tax shall be levied on (i) Public Property, (ii) Property Owner Association Property , (iii) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (iv) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely for public uses, (v) or any Assessor’s Parcel that has a Welfare Exemption . Should an Assessor’s Parcel , however, no longer be classified as items (i) -(v) above, including Property Owner Association Property, Public Property , or have a Welfare Exemption, its tax -exempt status will, without the necessity of any action by the Council, terminate.
The exempt status of any property will be determined by the CFD Administrator and such determination shall be final.
F. MANNER OF COLLECTION
The Special Tax shall 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 lien priority in case of delinquency as is provided for ad valorem property taxes; provided, however, that CFD No. 115M may directly bill the Special Tax, and/or may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of CFD No. 115M.
G. TERM OF SPECIAL TAX
The Special Tax shall be levied in perpetuity as necessary to meet the Special Tax Requirement, unless no longer required to pay for the authorized services as determined at the discretion of the Council.
H. APPEALS
Any landowner or resident who feels that the amount of the Special Tax levied on his/her Assessor’s Parcel is in error may submit a written appeal to the CFD Administrator, provided that the appellant is current in his/her payment of Special Taxes. During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, a cash refund shall not be made (except for the last year of levy), but 800
City of Fontana November 18, 2024
Community Facilities District No. 115M Page 6
the amount of the Special Tax levied shall be appropriately modified , reduced, or eliminated through an adjustment to the Special Tax levy in the following Fiscal Year. If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has thirty ( 30) days in which to appeal to the Council by filing a written notice of appeal with the City Clerk, provided that the appellant is current in his/her payment of Special Taxes.
This second appeal must specify the reasons for its disagreement with the CFD Administrator's determination.
The CFD Administrator shall interpret this Rate and Method of Apportionment for purposes of clarifying any ambiguity and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals.
Any decision of the CFD Administrator shall be subject to appeal to the Council whose decision shall be final and binding as to all persons.
I. PREPAYMENT
No prepayments of the Special Tax are permitted.
801
18201 VON KARMAN AVENUE, SUITE 220
IRVINE, CA 926 12
PHONE (800) 969 -4DTA
Public Finance
Public-Private Partnerships
Development Economics
Clean Energy Bonds
www.FinanceDTA.com
802