Attachment 3Attachment 3RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX Attachment 3
Attachment 3
CITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(NON-RESIDENTIAL MAINTENANCE AND SERVICES)
A Special Tax shall be levied and collected in City of Hesperia Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services) (“CFD 2022-1”) each Fiscal Year, in an amount determined by the application of the procedures below. All of the Taxable Property (as defined below) in CFD 2022-1, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.
I. DEFINITIONS
The terms hereinafter set forth have the following meaning:
"Acre” or “Acreage" means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map or in the Assessor’s Data for each Assessor’s Parcel. In the event that the Assessor’s Parcel Map or Assessor’s Data shows no Acreage, the Acreage for any Assessor’s Parcel may be determined by the CFD Administrator based upon the applicable final map, parcel map, or calculated using available spatial data and GIS. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1, Division 2 of Title 5 of the Government Code of the State. “Administrative Expenses” means the following actual or reasonably estimated costs directly related to the administration of CFD 2022-1 including, but not limited to, the following: the costs of computing the Annual Special Tax Requirement and the annual Special Tax and of preparing the annual Special Tax collection schedules; the costs of collecting the Special Tax, including any charges levied by the County Auditor’s Office, Tax Collector’s Office or Treasurer’s Office; the costs of the City or designee in complying with the disclosure requirements of the California Government Code (including the Act), including public inquiries regarding the Special Tax; the costs of the City or designee related to levying or an appeal of the Special Tax; and the costs of commencing and pursuing to completion action arising from any delinquent Special Tax in CFD 2022-1 or costs of the County tax sale process. Administrative Expenses shall include amounts estimated or advanced by the City or CFD 2022-1 for any other administrative purposes, including, but not limited to, attorney’s fees. “Annual Services Costs” means the amounts required to fund services authorized to be funded by CFD 2022-1. “Annual Special Tax Requirement” means that amount with respect to CFD 2022-1 determined by the City Council or designee as required in any Fiscal Year to pay: (1) the Administrative Expenses, (2) the Annual Services Costs, (3) any amount required to establish or replenish any reserve or replacement fund established in connection with CFD 2022-1, and (4) any reasonably anticipated delinquent Special Tax. “Assessor’s Data” means Building Square Footage, Acreage, or other information contained in the records of the County Assessor for each Assessor’s Parcel. “Assessor’s Parcel” or “Parcel” means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number. “Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number. “Assessor’s Parcel Number” means, with respect to an Assessor’s Parcel, that number assigned to such Assessment’s Parcel by the County Assessor for purposes of identification. “Boundary Map” means that map recorded with the County Recorder’s office on ________________ in Book ___ at Page ___ as Document Number __________________________. “Building Square Foot(age)” means the structure square footage as shown on the building permit issued or as contained in the Assessor’s Data or in City building permit data. “CFD 2022-1” means the City of Hesperia Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services), County of San Bernardino, State of California. “CFD Administrator” means an official of the City, or designee thereof, responsible for determining the Annual Special Tax Requirement and providing for the levy and collection of the Special Taxes. “City” means the City of Hesperia.
“City Council” means the City Council of the City, acting as the legislative body of CFD 2022-1. “County” means the County of San Bernardino, California. “Developed Property” means, in any Fiscal Year, all Taxable Property in CFD 2022-1 for which a building permit for new construction was issued by the City prior to June 30 of the preceding Fiscal Year. “Exempt Property” means all Assessor’s Parcels located within the boundary of CFD 2022-1 which are exempt from the Special Tax pursuant to Section E. “Fiscal Year” means the period starting July 1 and ending on the following June 30th. “GIS” means a geographic information system.
“Improved Square Foot(age)” means, for Industrial Parking Facility Property, that paved square footage used for parking facilities plus the structure square footage associated with any office or building on the property, as shown in Assessor’s Data or in City building permit data. “Industrial Parking Facility Property” means all Assessor’s Parcels of Developed Property used for the temporary parking or storage of vehicles for a fee. “Industrial Property” means all Assessor’s Parcels of Developed Property with an industrial use, according to Assessor’s Data or as otherwise known by the CFD Administrator. “Maximum Special Tax” means the maximum Special Tax authorized for levy in any Fiscal Year that may apply to Taxable Property as described in Section C. “Mixed Use Property” means all Assessor’s Parcels that have been classified by the City to allow multiple uses on each such Assessor’s Parcel. For an Assessor’s Parcel of Mixed Use Property, each property use thereon is subject to taxation pursuant to section C below. “Non-Residential Property” means all Assessor’s Parcels of Developed Property within the boundaries of CFD 2022-01 for which a building permit(s) has been issued for a non-residential structure(s). “Property Owner’s Association” means any property owner’s association. As used in this definition, a Property Owner’s Association includes any home-owner’s association, condominium owner’s association, master or sub-association. “Property Owner’s Association Property” means any property within the boundaries of CFD 2022-1 which is (a) owned by a Property Owner’s Association or (b) designated with specific boundaries and acreage on a final subdivision map as property owner association property. “Proportionately” means, in any Fiscal Year, that the ratio of the Special Tax to the Maximum Special Tax is equal for all Assessors’ Parcels Authorized to be levied in that Fiscal Year within 2022-1 each respective Tax Zone. “Public Property” means any property within the boundaries of CFD 2022-1 which (i) is owned by a public agency, (ii) has been irrevocably offered for dedication to a public agency, or (iii) is designated with specific boundaries and Acreage on a final subdivision map as property which will be owned by a public agency. For purposes of this definition, a public agency includes the federal government, the State, the County, school districts, or any other public agency. “Rate and Method of Apportionment” means this Rate and Method of Apportionment of Special Tax for CFD 2022-1. “Special Tax” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Annual Special Tax Requirement. “State” means the State of California.
“Tax Escalation Factor” means change in the April to April Riverside-San Bernardino-Ontario CPI-U Index (or a similar successor index) up to a maximum factor of 3% that will be applied annually after Fiscal Year 2022/23 to increase the Maximum Special Tax shown in Section III. Should the specified index cease to be reported, the CFD Administrator will determine a comparable index to use. “Tax Zone” means a mutually exclusive geographic area within which the Special Tax may be levied pursuant to this Rate and Method of Apportionment. All the Taxable Property within CFD 2022-1 at the time of its formation is within Tax Zone No. 1. Additional Tax Zones may be created when property is annexed to CFD 2022-1, and a separate Maximum Special Tax shall be identified for property within each new Tax Zone at the time of such annexation. The Assessor’s Parcels included within a new Tax Zone when such Parcels are annexed to CFD 2022-1 shall be identified by Assessor’s Parcel number in the annexation documents at the time of annexation. “Taxable Property” means all the Assessor’s Parcels within the boundaries of CFD 2022-1 that are not exempt from the Special Tax pursuant to law or Section E below. “Undeveloped Property” means all Assessor’s Parcels of Taxable Property within the boundaries of CFD 2022-1 that are not Developed Property. “Welfare Exempt Property” means, in any Fiscal Year, all Parcels within the boundaries of CFD 2022-1 that have been granted a welfare exemption pursuant to Section 53340 (c) of the Act under subdivision (g) of Section 214 of the Revenue and Taxation Code.
B. DETERMINATION OF TAXABLE PARCELS
On, or about, July 1 of each Fiscal Year, the CFD Administrator shall determine the valid Assessor’s Parcel Numbers for all Taxable Property within CFD 2022-1. If any Assessor’s Parcel Numbers are no longer valid, the CFD Administrator shall determine the new Assessor’s Parcel Number or Numbers in effect for the then-current Fiscal Year. To the extent a Parcel or Parcels of Taxable Property are subdivided, consolidated, or otherwise reconfigured, the Maximum Special Tax shall be assigned to the new Assessor’s Parcels Numbers pursuant to Section C. The CFD Administrator shall also determine: (i) the Tax Zone within which each Parcel is located; (ii) which Parcels are Developed Property and Undeveloped Property; (iii) the number of Units, Building Square Footage, or Acreage each Parcel contains; (iv) the property type, i.e., Industrial Property, etc.; and (v) the Annual Special Tax Requirement for the Fiscal Year.
C. MAXIMUM ANNUAL SPECIAL TAX RATE
The Maximum Special Tax for each Assessor’s Parcel of Taxable Property within Tax Zone No. 1 shall be assigned according to the table below.
In some instances, an Assessor’s Parcel of Developed Property may contain more than one property land use. The Maximum Special Tax assigned to an Assessor’s Parcel of Mixed Use Property shall be the sum of the Maximum Special Tax for all property uses located on that Assessor’s Parcel.
TABLE 1
MAXIMUM SPECIAL TAX RATES – TAX ZONE NO. 1
FISCAL YEAR 2022/23*
Property Type
Maximum Special Tax Rate
Per
Industrial Property
$0.15
Building Square Foot
Industrial Parking Facility Property
$0.15
Improved Square Foot
Mixed Use Property
$0.15
Building Square Foot
*On each July 1, commencing on July 1, 2023, the Maximum Special Tax Rate shall be increased by the Tax Escalation Factor.
On July 1 of each Fiscal Year, commencing on July 1, 2023, the Maximum Special Tax for Tax Zone No. 1 shall be increased by an amount equal to the Tax Escalation Factor.
A different Maximum Special Tax rate and Tax Escalation Factor may be identified in Tax Zones added to CFD No. 2022-1 as a result of future annexations.
D. METHOD IF APPORTIONMENT OF THE SPECIAL TAX
All Taxable Property shall be subject to a Special Tax defined as follows.
The Special Tax shall be levied each Fiscal Year by the CFD Administrator. The Annual Special Tax Requirement shall be apportioned to each Parcel within CFD 2022-1 by the method shown below.
Determine the Annual Special Tax Requirement.
Levy the Special Tax on each Parcel of Developed Property, Proportionately, up to the Maximum Special Tax described in the table below to satisfy the Annual Special Tax Requirement.
In some instances, an Assessor’s Parcel of Developed Property may be Mixed-Use Property. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax for all Units and Building Square Feet of each property type on that Assessor’s Parcel.
E. EXEMPTIONS
Notwithstanding any other provision of this Rate and Method of Apportionment of Special Tax, no Special Tax shall be levied on Agricultural Property, Property Owner Association Property or Public Property, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act.
Welfare Exempt Property shall be exempt from the Special Tax in any Fiscal Year the property qualifies as Welfare Exempt Property.
F. APPEAL OF SPECIAL TAX LEVY
Any property owner may file a written appeal of the Special Tax with the CFD Administrator claiming that the amount or application of the Special Tax is not correct. The appeal must be filed not later than one calendar year after having paid the Special Tax that is disputed, and the appellant must be current in all payments of the Special Tax. In addition, during the term of the appeal process, all Special Tax 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 property owner disagrees with the CFD Administrator’s decision relative to the appeal, the owner may then file a written appeal with the City Council whose subsequent decision shall be final and binding on all interested parties. If the decision of the CFD Administrator or subsequent decision by the City Council requires the Special Tax to be modified or changed in favor of the property owner, the CFD Administrator shall determine if sufficient Special Tax revenue is available to make a cash refund. If a cash refund cannot be made, then an adjustment shall be made to credit future Special Taxes.
This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to filing any legal action by such owner.
G. INTERPRETATION OF RATE AND METHOD OF APPORTIONMENT
The City Council may, by resolution or ordinance, interpret, clarify and/or revise this Rate and Method of Apportionment to correct any inconsistency, vagueness, or ambiguity as it relates to the Special Taxes, method of apportionment, classification of Assessor’s Parcels, or any definition used herein, as long as such correction does not materially affect the levy and collection of Special Taxes. In addition, the interpretation and application of any section of this document shall be at the City’s discretion.
H. MANNER AND DURATION OF SPECIAL TAX
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided that the City may directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner if needed to meet the financial obligations of CFD 2022-1, and may collect delinquent Special Taxes through available methods.
A Special Tax shall be levied commencing in Fiscal Year 2022/23 to the extent necessary to satisfy the Annual Special Tax Requirement and shall be levied perpetually or for as long as required to satisfy the Annual Special Tax Requirement, as determined by the CFD Administrator.
I. PREPAYMENT OF SPECIAL TAX
The Special Tax may not be prepaid.
City of Hesperia
Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services) Page 6
EXHIBIT A
EXHIBIT A