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CHANGES TO RATE AND
METHOD OF APPORTIONMENT
CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 115M
Report Date: November 18, 2024
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
TABLE
OF CONTENTS
SECTION
I CHANGES TO RATE AND METHOD ............................ 1
APPENDICES
APPENDIX A AMENDED AND RESTATED RATE AND
METHOD OF APPORTIONMENT
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.
APPENDIX A
City of Fontana
Community Facilities District No. 115M
AMENDED AND RESTATED
RATE AND METHOD OF
APPORTIONMENT
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.
City of Fontana November 18, 2024
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.
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 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.
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 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.
18201 VON KARMAN AVENUE, SUITE 220
IRVINE, CA 926 12
PHONE (800) 969 -4DTA
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