Attachment 3Attachment 3RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX Attachment 3
Attachment 3
CITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2023-1
(SILVERWOOD MAINTENANCE AND SERVICES)
A Special Tax, as hereinafter defined, shall be levied and collected in City of Hesperia Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) (“CFD No. 2023-1”) each Fiscal Year commencing in Fiscal Year 2023/24, in an amount determined by the application of the procedures below. All Taxable Property, as hereinafter defined, 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 meaning:
“Accessory Dwelling Unit” or “ADU” means all Assessor’s Parcels of Residential Property for which a building permit(s) has been issued for an “Accessory Dwelling Unit” as defined in in California Government Code Section 65852.2(j)(1), as may be amended from time to time, that is accessory to a primary Unit. The ADU may be located on the same Assessor’s Parcel as the primary Unit or on a separate Assessor’s Parcel. For purposes of clarification, where an ADU and primary Unit are on the same Assessor’s Parcel, the ADU located on such Assessor’s Parcel is considered a separate Unit from the primary Unit on such Assessor’s Parcel for purposes of the Special Tax and both Units will be taxed. Should an Assessor’s Parcel contain only an ADU, such Assessor’s Parcel will be taxed as an ADU Unit only. "Acre” or “Acreage" means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map. In the event that the Assessor’s Parcel Map shows no acreage, the Acreage for any Assessor’s Parcel may be determined by the CFD Administrator based upon, in the CFD Administrator’s discretion, the applicable condominium plan, final map, parcel map, Assessor’s Data or by 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 No. 2023-1 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 No. 2023-1 or costs of the County tax sale process. Administrative Expenses shall include amounts estimated or advanced by the City or CFD No. 2023-1 for any other administrative purposes, including, but not limited to, attorney’s fees. “Age Qualified Single-Family Attached Property” means all Assessor’s Parcels of Developed Property for which a building permit was issued for construction of a residential structure consisting of two or more Units that share common walls that have separate Assessor’s Parcel Numbers assigned to each Unit (except for a duplex, triplex, or fourplex unit, which may share a Parcel with another duplex, triplex or fourplex Unit(s)), may be purchased by individual homebuyers who are subject to legal discrimination on the basis of age (which shall still be the case even if the Units are purchased and subsequently offered for rent by the owner of the Unit), including such residential structures that meet the statutory definition of a condominium project contained in Civil Code Section 4125, according to Assessor’s Data or as otherwise known by the CFD Administrator. “Age Qualified Single-Family Detached Property” means all Assessor’s Parcels of Developed Property for which a building permit was issued for construction of a residential structure consisting of one Unit that does not share a common wall with another Unit, and may be purchased by individual homebuyers who are subject to legal discrimination on the basis of age (which shall still be the case even if the Units are purchased and subsequently offered for rent by the owner of the Unit), according to Assessor’s Data or as otherwise known by the CFD Administrator. “Annual Services Costs” means the respective annual amounts determined by the CFD Administrator as reasonably needed to fund the Authorized Services authorized to be funded by CFD No. 2023-1 for the applicable yearly period. “Annual Special Tax Requirement” means that amount with respect to CFD No. 2023-1 determined by the CFD Administrator as required in any Fiscal Year to pay: (1) the Administrative Expenses, (2) the Annual Services Costs, and (3) the amount required to establish or replenish any reserve or replacement fund established in connection with CFD No. 2023-1, and (4) an amount equal to reasonably anticipated delinquencies in the payment of the annual Special Tax based on the delinquency rate for any Special Tax levied in the previous Fiscal Year (or as projected by the CFD Administrator for the first Fiscal Year’s Special Tax levy). “Assessor’s Data” means the property characteristic data compiled and maintained by the County Assessor for each Assessor’s Parcel, including, but not limited to, Assessor’s Parcel Number, Acreage, and Units. “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 County Assessor designating parcels by Assessor’s Parcel Number. “Assessor’s Parcel Number” or “APN” means, with respect to an Assessor’s Parcel, that number assigned to such Assessor’s Parcel by the County Assessor for purposes of identification. “Authorized Services” means the services provided by the City and authorized to be funded as indicated in the resolution of intention, in whole or in part, by CFD No. 2023-1. “Building Permit” means a permit issued by the City for new construction of a residential or non-residential building on an Assessor’s Parcel. “Building Square Feet” or “BSF” means all of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Building Square Feet shall be made by reference to the Assessor’s Data. In the event that the Assessor’s Data does not show Building Square Feet, the Building Permit(s) issued for such residential dwelling unit or other records of the City shall be used as determined by the CFD Administrator. “California Municipal Finance Authority” means the California Municipal Finance Authority, a California joint powers agency organized under the Joint Exercise of Powers Act of the Government Code of the State of California. “CFD Administrator” means an official of the City, or designee thereof, responsible for determining the Annual Special Tax Requirement (including the Annual Services Costs) and providing for the levy and collection of the Special Taxes. “CFD No. 2023-1” means the City of Hesperia Community Facilities District No. 2023-1 (Silverwood Maintenance and Services). “City” means the City of Hesperia.
“City Council” means the City Council of the City, acting as the legislative body of CFD No. 2023-1. “CMFA CFD No. 2023-11” means the California Municipal Finance Authority Community Facilities District No. 2023-11 (City of Hesperia – Silverwood), established by the California Municipal Finance Authority. “CMFA CFD No. 2023-11 Bonds” means bonds or other Debt (as defined in section 53317 of the Act), whether in one or more series, issued or assumed by or on behalf of the California Municipal Finance Authority for CMFA CFD No. 2023-11 under the Act. “County” means the County of San Bernardino, California. “County Assessor” means the County Assessor of the County. “Developed Property” means, in any Fiscal Year, all Taxable Property in CFD No. 2023-1 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 No. 2023-1 which are exempt from the Special Tax pursuant to Section E below. “Fiscal Year” means the period starting July 1 and ending on the following June 30th. “GIS” or “Geographic Information System” means a system designed to capture, store, manipulate, analyze, manage, and present spatial or geographic data. “Hotel Property” means all Assessor’s Parcels within the boundaries of CFD No. 2023-1 that have an establishment providing short-term lodging accommodations and other services for travelers and tourists. "Maximum Special Tax” means for each Assessor’s Parcel of Taxable Property and each Fiscal Year, the maximum Special Tax, determined in accordance with Section C below, that can be levied in such Fiscal Year on such Assessor’s Parcel of Taxable Property. “Mixed-Use Property” means all Assessor’s Parcels of Developed Property for which a Building Permit was issued for a structure that contains more than one Property Type. For an Assessor’s Parcel of Mixed-Use Property, each Property Type is subject to taxation pursuant to Section C below. “Non-Age Qualified Apartment Property” means all Assessor’s Parcels of Developed Property for which a Building Permit was issued for construction of a residential structure consisting of attached residential Units under common management that are available for rent, but not purchase, by individuals who are not subject to legal discrimination on the basis of age, according to Assessor’s Data or as otherwise known by the CFD Administrator. “Non-Age Qualified Single-Family Attached Property” means all Assessor’s Parcels of Developed Property for which a Building Permit was issued for construction of a residential structure consisting of two or more Units that share common walls that have separate Assessor’s Parcel Numbers assigned to each Unit (except for a duplex triplex, or fourplex unit, which may share a Parcel with another duplex, triplex or fourplex Unit(s)), and may be purchased by individual homebuyers who are not subject to legal discrimination on the basis of age (which shall still be the case even if the Units are purchased and subsequently offered for rent by the owner of the Unit), including such residential structures that meet the statutory definition of a condominium project contained in Civil Code Section 4125, according to Assessor’s Data or as otherwise known by the CFD Administrator. “Non-Age Qualified Single-Family Detached Property” means all Assessor’s Parcels of Developed Property for which a Building Permit was issued for construction of a residential structure consisting of one Unit that does not share a common wall with another Unit, and may be purchased by individual homebuyers who are not subject to legal discrimination on the basis of age (which shall still be the case even if the Units are purchased and subsequently offered for rent by the owner of the Unit), according to Assessor’s Data or as otherwise known by the CFD Administrator. “Office Property” means all Assessor’s Parcels of Developed Property used as offices, including medical and dental offices and office condominiums, according to Assessor’s Data or as otherwise known to the CFD Administrator. “Property Owner’s Association” or “POA” means any duly constituted 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 or non-residential owner’s association. “Property Owner’s Association Property” means any property within the boundaries of CFD No. 2023-1 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. “Property Type” means any of the classes listed in Table 1 and Table 2. “Proportionately” means, in any Fiscal Year, that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Parcels of Developed Property. “Public Property” means any property within the boundaries of CFD No. 2023-1 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 No. 2023-1. “Retail/Restaurant Property” means all Assessor’s Parcels of Developed Property for which a Building Permit(s) was issued for construction of a non-residential structure(s) which has retail food (with beverages) service facilities, or in which general merchandise, hard goods, and other items are sold directly to consumers, or in which services other than professional, clerical, or medical are provided directly to consumers, according to Assessor’s Data or as otherwise known to the CFD Administrator. “Residential Property” means Assessor’s Parcels of Developed Property that are Non-Age Qualified Apartment Property, Non-Age Qualified Single-Family Attached Property, Non-Age Qualified Single-Family Detached Property, Age Qualified Single-Family Attached Property, Age Qualified Single-Family Detached Property, or an Accessory Dwelling Unit. “Special Tax(es)” means the annual special tax to be levied by CFD No. 2023-1 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 the percentage change in the Riverside-San Bernardino-Ontario CPI-U Index (or a similar successor index) measured from March of the second preceding Fiscal Year to March of the preceding Fiscal Year (e.g., March 2023 to March 2024 for Fiscal Year 2024/25) that will be applied on July 1 of each Fiscal Year after Fiscal Year 2023/24 to increase the Maximum Special Tax shown in Section C. Should the foregoing CPI 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 No. 2023-1 at the time of its formation is within Tax Zone No. 1. Additional Tax Zones may be created when property is annexed to CFD No. 2023-1, 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 No. 2023-1 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 No. 2023-1 that are not exempt from the Special Tax pursuant to law or Section E below. “Transition Event” means the Fiscal Year in which the CFD Administrator determines that all CMFA CFD No. 2023-11 Bonds secured by special taxes levied by CMFA CFD No. 2023-11 on property within the applicable Tax Zone have been fully repaid and CMFA CFD No. 2023-11 provides written confirmation that no additional CMFA CFD No. 2023-11 Bonds secured by special taxes levied by CMFA CFD No. 2023-11 on property within the applicable Tax Zone are to be issued. Prior to the Transition Year, the Maximum Special Tax for each parcel of Taxable Property shall be assigned pursuant to Table 1. After the Transition Year, the Maximum Special Tax for each parcel of Taxable Property shall be assigned pursuant to Table 2. “Transition Year” means the first Fiscal Year in which the CFD Administrator determines that the Transition Event occurred in the prior Fiscal Year. “Undeveloped Property” means all Assessor’s Parcels within the boundaries of CFD No. 2023-1 that are not classified as Developed Property. “Unit” means (i) for Non-Age Qualified Single-Family Detached Property and Age Qualified Single-Family Detached Property, an individual single family detached residential unit, (ii) for Non-Age Qualified Single-Family Attached Property and Age Qualified Single-Family Attached Property, an individual single family attached residential unit, (iii) for Non-Age Qualified Apartment Property, an individual apartment unit, and (iv) an ADU. The number of Units assigned to each Assessor’s Parcel may be determined by (i) referencing Assessor’s Data, (ii) site surveys and physical unit counts, and/or (iii) other research by the CFD Administrator. “Welfare Exempt Property” means, in any Fiscal Year, all Parcels within the boundaries of CFD No. 2023-1 that (a) have been granted a welfare exemption by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code indicated in the Assessor’s Data finalized as of January 1 of the previous Fiscal Year, and (b) are exempt from the Special Tax pursuant to Section 53340(c) of the Act.
B. DETERMINATION OF TAXABLE PARCELS
Each Fiscal Year, the CFD Administrator shall determine the Assessor’s Parcel Numbers for all Taxable Property within CFD No. 2023-1 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 Parcel 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; (iii) the number of Units or Building Square Footage each Parcel contains; (iv) the Property Type (e.g., Non-Age Qualified Apartment Property, Hotel Property, ADU, etc.); and (v) the Annual Special Tax Requirement for the Fiscal Year.
C. MAXIMUM ANNUAL SPECIAL TAX RATES
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.
TABLE 1
MAXIMUM SPECIAL TAX RATES – PRIOR TO THE TRANSITION YEAR TAX ZONE NO. 1
FISCAL YEAR 2023/24*
Property Type
Maximum Special Tax Rate
Per
Non-Age Qualified Apartment Property
$340.00
Unit
Non-Age Qualified Single-Family Attached Property
360.00
Unit
Non-Age Qualified Single-Family Detached Property
400.00
Unit
Age Qualified Single-Family Attached Property
360.00
Unit
Age Qualified Single-Family Detached Property
380.00
Unit
Hotel Property
0.09 BSF
Retail/Restaurant Property
0.14 BSF
Office Property
0.23 BSF
Mixed-Use Property
See Below
Unit/BSF
Accessory Dwelling Unit
See Below
Unit
*On each July 1, commencing on July 1, 2024, the Maximum Special Tax Rates shown in Table 1 shall be increased by the Tax Escalation Factor.
TABLE 2
MAXIMUM SPECIAL TAX RATES – COMMENCING IN THE TRANSITION YEAR TAX ZONE NO. 1
FISCAL YEAR 2023/24*
Property Type
Maximum Special Tax Rate
Per
Non-Age Qualified Apartment Property
$510.00
Unit
Non-Age Qualified Single-Family Attached Property
540.00
Unit
Non-Age Qualified Single-Family Detached Property
600.00
Unit
Age Qualified Single-Family Attached Property
540.00
Unit
Age Qualified Single-Family Detached Property
570.00
Unit
Hotel Property
0.13 BSF
Retail/Restaurant Property
0.21 BSF
Office Property
0.34 BSF
Mixed-Use Property
See Below
Unit/BSF
Accessory Dwelling Unit
See Below
Unit
*On each July 1, commencing on July 1, 2024, the Maximum Special Tax Rates shown in Table 2 shall be increased by the Tax Escalation Factor.
Mixed-Use Property
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Property Type. 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.
Accessory Dwelling Unit
The Maximum Special Tax for an Accessory Dwelling Unit shall be calculated as a percentage of the Maximum Special Tax shown in Table 1 prior to the Transition Year or in Table 2 commencing in the Transition Year for the primary Unit to which the ADU is an accessory, based on Building Square Footage. For example, if a primary Unit of Non-Age Qualified Single-Family Detached Property of 2,000 BSF has an ADU of 800 BSF, the Maximum for the ADU Special Tax in Tax Zone No. 1 shall be calculated by the following steps:
800 BSF / 2,000 BSF = 0.40 or 40%
$600 Maximum Special Tax per Unit x 40% = $240 Maximum Special Tax for such ADU Maximum Special Tax Increase
On July 1 of each Fiscal Year, commencing on July 1, 2024, the Maximum Special Tax shall be increased by an amount equal to the Tax Escalation Factor.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
All Taxable Property shall be subject to an annual Special Tax as follows.
The Special Tax shall be levied each Fiscal Year as calculated by the CFD Administrator. The Annual Special Tax Requirement shall be apportioned to each Parcel of Taxable Property within CFD No. 2023-1 by the method shown below.
First: Determine the Annual Special Tax Requirement.
Second: Levy the Special Tax on each Parcel of Developed Property, Proportionately, up to the applicable Maximum Special Tax.
Notwithstanding the foregoing, under no circumstances will the Special Tax on any Assessor’s Parcel used for private residential purposes be increased by more than 10% as a consequence of delinquency or default by the owner of any other Assessor’s Parcel within CFD No. 2023-1.
E. EXEMPTIONS
Notwithstanding any other provision of this Rate and Method of Apportionment, no Special Tax shall be levied on (i) Property Owner’s Association Property, (ii) Assessor’s Parcels with public or utility easements making impractical their utilization for any use other than the purposes set forth in the easement, (iii) Public Property, except as otherwise provided in Sections 53317.3, 53317.5, and 53340.1 of the Act, (iv) Undeveloped Property.
No Special Tax shall be levied on any Assessor’s Parcel in any Fiscal Year in which such Assessor’s Parcel is classified 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 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 No. 2023-1, and may collect delinquent Special Taxes through available methods.
A Special Tax shall be levied commencing in Fiscal Year 2023/24 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.
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