Hesperia City Council
August 1, 2023

SPECIAL MEETING AGENDA

HESPERIA CITY COUNCIL

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

HOUSING AUTHORITY

COMMUNITY DEVELOPMENT COMMISSION

WATER DISTRICT
Meeting Agenda
Tuesday, August 1, 2023
No Closed Session
Special Meeting - 3:00 PM
City Council Chambers
9700 Seventh Ave., Hesperia CA, 92345
City Clerk's Office: (760) 947-1007
City Council Members
Brigit Bennington, Mayor
Larry Bird, Mayor Pro Tem
Allison Lee, Council Member
Cameron Gregg, Council Member
Rebekah Swanson, Council Member
Rachel Molina, City Manager
Pam K. Lee, City Attorney
See page (3) for details on public meeting guidelines during the COVID-19 (Coronavirus) Pandemic
NOTE: In compliance with the Americans with Disability Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at (760) 947-1007 or (760) 947-1026. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility.

B
rigit Bennington, Mayor 9700 Seventh Avenue
Larry Bird, Mayor Pro Tem Hesperia, CA 92345
Cameron Gregg, Council Member
Allison Lee, Council Member 760-947-1000
Rebekah Swanson, Council Member TD 760-947-1119
Rachel Molina, City Manager www.cityofhesperia.us
Gateway to the High Desert
City of Hesperia

Public Access to City Council Meetings:

C
ity Council meetings are now open to the public within the guidelines provided by the State which may include wearing masks and socially distancing from other attendees.

P
ublic Comments can be made in -person at City Council Meetings and/or can be submitted via telephone recording that will be played during the meeting.

C
ity Council meetings may be viewed live or after the event on the City’s website at www.cityofhesperia.us.

R
emote Public Comment:

P
ublic Comments Made By-Telephone Process
Public comments will be accepted in advance until 5:30 pm on the day of the scheduled meeting by calling and leaving a recorded message at (760) 947-1056. Comments received past 5:30 pm will not be included in the record. If you would like to comment remotely, please follow the protocols below:
• Cal l (760)947-10 56 to leave a detailed message of your public comment.
• Identify your name and the item you wish to comment on in your message.
• Cont
act information in your voicemail is optional, but will allow staff to easily follow up with you if necessary.
• Each public comment received by voicemail will be played by a staff member for up to three (3) minutes for Consent Calendar/New Business items and up to five (5) minutes for Public Hearing items.

Remote public comments received outside of the comment period outlined above will not be included in the record.

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August 1, 2023City Council Meeting Agenda

SPECIAL MEETING AGENDA

HESPERIA CITY COUNCIL

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

HESPERIA HOUSING AUTHORITY

HESPERIA COMMUNITY DEVELOPMENT COMMISSION

HESPERIA WATER DISTRICT
9700 7th Avenue, Council Chambers, Hesperia, CA 92345
As a courtesy, please silence your cell phones and other electronic devices while the meeting is in session. Thank you.

Prior to action of the Council, any member of the audience will have the opportunity to address the legislative body on any item listed on the agenda, including those on the Consent Calendar.

Individuals wishing to speak during General Public Comments or on a particular numbered item must submit a speaker slip to the City Clerk with the agenda item noted. Speaker slips should be turned in prior to the public comment portion of the agenda or before an agenda item is discussed. Comments will be limited to three minutes for General Public Comments, Consent Calendar items and New Business items. Comments are limited to five minutes for Public Hearing items.

In compliance with the Brown Act, the City Council may not discuss or take action on non-agenda items or engage in question and answer sessions with the public. The City Council may ask brief questions for clarification; provide a reference to staff or other resources for factual information and direct staff to add an item to a subsequent meeting.

NO CLOSED SESSION
CALL TO ORDER - 3:00 PM
A. Invocation
B.

Pledge of Allegiance to the Flag
C. Roll Call
Mayor Brigit Bennington
Mayor Pro Tem Larry Bird
Council Member Allison Lee
Council Member Cameron Gregg
Council Member Rebekah Swanson
D. Agenda Revisions and Announcements by City Clerk
E. Closed Session Reports by City Attorney

ANNOUNCEMENTS/PRESENTATIONS

1. Presentation of Certificate of Recognition honoring World War II Veteran Ernest C. Johnson who will be turning 100 on 12/27/23, by the City Council.

2. Environmental Programs Update by Lesa Byars, Management Analyst

August 1, 2023City Council Meeting Agenda
GENERAL PUBLIC COMMENTS (For items and matters not listed on the agenda) Individuals wishing to speak during General Public Comments or on a particular numbered item are requested to submit a speaker slip to the City Clerk with the agenda item noted. Speaker slips should be turned in prior to the public comment portion of the joint agenda or before an agenda item is discussed. Comments will be limited to three minutes for General Public Comments, Consent Calendar items and New Business items. Comments are limited to five minutes for Public Hearing items.

In compliance with the Brown Act, the City Council may not discuss or take action on non-agenda items or engage in question and answer sessions with the public. The City Council may ask brief questions for clarification; provide a reference to staff or other resources for factual information and direct staff to add an item to a subsequent meeting.

JOINT CONSENT CALENDAR

1. Consideration of the Draft Minutes from the Regular Meeting held Tuesday, July 18, 2023.

Recommended Action:

It is recommended
that the City Council approve the Draft Minutes from the Regular Meeting held Tuesday, July 18, 2023.

Staff Person: Assistant City Clerk Erin Baum
Draft CC Min 2023-7-18Attachments:

2. Warrant Run Report (City - Successor Agency - Housing Authority - Community Development Commission - Water)
Recommended Action:

It is recommended that the Council/Board ratify the warrant run and payroll report for the City, Successor Agency to the Hesperia Community Redevelopment Agency, Hesperia Housing Authority, Community Development Commission, and Water District.

Staff Person: Assistant City Manager Casey Brooksher
SR Warrant Run 8-1-2023
Attachment 1 - Warrant Run
Attachments:

3. Amend Contract with Tyler Technologies
Recommended Action:

It is recommended
that the City Council and Board of Directors of the Hesperia Water District authorize the City Manager to amend the current contract with Tyler Technologies in the amount of $10,000 for a total not-to-exceed contract amount of $642,015, for maintenance, software, licensing and customization support for the New World Financial System and MyCivic Citizen Engagement platform.

Staff Person: Assistant City Manager Casey Brooksher

August 1, 2023City Council Meeting Agenda
SR Tyler Technologies 8-1-2023Attachments:

4. Award of Contract for Overhead Street Name Signs
Recommended Action:

It is recommended
that the City Council authorize the City Manager to enter into a one (1) year agreement with Safeway Sign Company in a not-to-exceed contract amount of $56,537, for the purchase of overhead street name signs.

Staff Person: Director of Public Works Jeremy McDonald
SR Award of Contract for Overhead Street Name Signs 8-1-2023Attachments:

5. Vehicle Procurement - Two Mid-Size Trucks
Recommended Action:

It is recommended
that the Board of Directors of the Hesperia Water District (HWD) authorize the City Manager to approve the procurement of two (2) 2023 Ford Ranger 4 x 4 trucks for the Production Program; adopt Resolution HWD No. 2023-13 amending the Fiscal Year (FY) 2023-24 Budget by appropriating $64,000; and authorize the purchase from Fairview Ford
Staff Person: Director of Public Works Jeremy McDonald
SR Vehicle Procurement - Two Mid-Size Trucks 8-1-2023
Resolution HWD 2023-13
Attachments:

6. Award of Contract for a Swaploader Conversion
Recommended Action:

It is recommended
that the Board of Directors of the Hesperia Water District (District) authorize the City Manager to enter into an agreement with PB Loader Corporation for a not-to-exceed contract amount of $52,408, for a swaploader conversion on an existing District fleet vehicle.

Staff Person: Director of Public Works Jeremy McDonald
SR Award of Contract for a Swaploader Conversion 8-1-2023 Attachment 1 - Bid Comparison
Attachment 2 - Cost Analysis
Attachments:

7. Final Map No. 18955-5
Recommended Action:

It is recommended
that the City Council adopt Resolution No. 2023-50
approving Final Map No. 18955-5 to create 69 residential lots on approximately

21.4 gross acres and accept right-of-way necessary to develop Tract 18989-1 Lot 5, Planning Area 5 of the Tapestry Specific Plan (Applicant: Silverwood Development Phase I, LLC).

Staff Person: Administrative Analyst Bethany Hudson, Deputy Development Services Director Dani Fox and Director of Development Services Nathan Freeman

August 1, 2023City Council Meeting Agenda
SR Final Tract Map 18955-5 8-1-2023
Resolution 2023-50
Attachment 1 - Final Tract Map 18955-5
Attachments:

8. Final Map No. 18955-7
Recommended Action:

It is recommended that
the City Council adopt Resolution No. 2023-51
approving Final Map No. 18955-7 to create 46 residential lots on approximately

22.08 gross acres and accept right-of-way necessary to develop Tract 18989-1 Lot 7, Planning Area 8 of the Tapestry Specific Plan (Applicant: Silverwood Development Phase I, LLC).

Staff Person: Director of Development Services Nathan Freeman , Deputy Development Services Director Dani Fox and Administrative Analyst Bethany Hudson SR Final Tract Map 18955-7 8-1-2023
Resolution 2023-51
Attachment 2 - Final Tract Map 18955-7
Attachments:

PUBLIC HEARING
Individuals wishing to comment on public hearing items must submit a speaker slip to the City Clerk with the numbered agenda item noted. Speaker slips should be turned in prior to an agenda item being taken up.

Comments will be limited to five minutes for Public Hearing items.

WAIVE READING OF ORDINANCES
Approve the reading by title of all ordinances and declare that said titles which appear on the public agenda shall be determined to have been read by title and further reading waived.

9. Public hearing, landowner election, and actions related to formation of Community Facilities District No.
2023-1 (Silverwood Maintenance and
Services)
Recommended Action:

It is recommended that the City Council: 1) Conduct the public hearing and consider written and oral protests; 2) Adopt Resolution No. 2023-22 of formation of a Community Facilities District and Future Annexation Area; 3) Adopt Resolution No. 2023-53 calling a special landowner election for a community facilities district, and direct the City Clerk to complete the landowner elections; 4) Adopt Resolution No. 2023-54 declaring the results of the special landowner election and, if the election is successful, direct recording of Notice of Special Tax Lien; and 5) Introduce Ordinance No. 2023-11 levying special taxes within the Community Facilities District (including any territory that annexes into the Community Facilities District from the Future Annexation Area).

Staff Person: Assistant City Manager Casey Brooksher

August 1, 2023City Council Meeting Agenda
SR Hesperia Silverwood CFD 2023-1 8-1-2023
Attachment 1 - Resolution 2023-22 Formation of CFD
Attachment 2 - Resolution 2023-53 Calling for a Special Election Attachment 3 - Resolution 2023-54 Declaring Election Results Attachment 4 - Ordinance 2023-11 Authorizing Levy of Special Taxes Attachment 5 - Special Tax Report
Attachments:

COUNCIL COMMITTEE REPORTS AND COMMENTS
The Council may report on their activities as appointed representatives of the City on various Boards and Committees and/or may make comments of general interest or report on their activities as a representative of the City.

CITY MANAGER/CITY ATTORNEY/STAFF REPORTS
The City Manager, City Attorney or staff may make announcements or reports concerning items of interest to the Council and the public.

ADJOURNMENT
I, Erin Baum, Assistant City Clerk of the City of Hesperia, California do hereby certify that I caused to be posted the foregoing agenda on Thursday, July 27, 2023 at 5:30 p.m. pursuant to California Government Code §54954.2. _____________________________
Erin Baum,
Assistant City Clerk
Documents produced by the City and distributed less than 72 hours prior to the meeting regarding items on the agenda will be made available in the City Clerk's Office during normal business hours.

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City of Hesperia
City of Hesperia
Meeting Minutes - Draft
City Council
Tuesday, July 18, 2023 6:30 PM

REGULAR MEETING AGENDA

HESPERIA CITY COUNCIL

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

HESPERIA HOUSING AUTHORITY

HESPERIA COMMUNITY DEVELOPMENT COMMISSION

HESPERIA WATER DISTRICT
CLOSED SESSION - 5:00 PM
Roll Call

Present: 5 - Mayor Pro Tem Bird, Council Member Swanson, Council Member Gregg, Mayor Bennington, and Council Mem
ber Lee
Conference with Legal Counsel – Existing Litigation -Government Code Section 54956.9(d)1

1. NuLevel Partners, Inc. v. City of Hesperia, San Bernardino County Superior Court Case No. CIV CIVSB2133905

2. Apex HM, LLC, et al. v. City of Hes
peria, San Bernardino County Superior Court
Case No. CIV
CIVSB2208845.

3. County of SB vs City of Hesperia, Case
no: CIVSB2209965
CALL TO ORDER - 6:32 PM
A. Invocation
B. Pledge of Allegiance to the Flag
C. Roll Call

Present: 5 - Mayor Pro Tem Bird, Council Member Swanson, Council Member Gregg, Mayor Bennington, and Counci
l Member Lee
D. Agenda Revisions and Announcements by City Clerk
E. Closed Session Reports
by City Attorney
City Council Chambers
9700 Seventh Ave.

Hesperia CA, 92345

City of Hesperia
GENERAL PUBLIC COMMENTS (For items and matters not listed on the agenda) Bob Nelson commented on speaking limits.

Daniel Krist commented on community issues.

Stefanie Vanderlaag commented on the animal shelter.

Rebecca commented on staff.

Arlene Hogan commented on the animal shelter.

Gene Taylor commented on an issue in his neighborhood.

Tiffany Tillinghast commented on the animal shelter.

Joshua Ensz commented on an issue in his neighborhood.

Deanna Beck commented on the animal shelter.

Mike Leonard congratulated the City Manager.

John Lindsay commented on an issue in his neighborhood.

Julio Serrano commented on a Code Enforcement issue.

Dr. Cisneros commented on a staff issue.

Stephanie James commented on the animal shelter.

Gina Whelan commented on the animal shelter.

Frances Schauweeker commented on an issue with parks.

Karen from Scott Wilk’s office congratulated the City Manager.

Corrine from Jay Obernolte’s office congratulated the City Manager.

Resa from Juan Carillo’s office congratulated the City Manager.

Kelly Gregg commented on the animal shelter.

JOINT CONSENT CALENDAR
Item number 11 was pulled from the consent calendar and considered separately.

A motion was made by Gregg, seconded by Bird, that the joint consent calendar, minus item number 11, be approved. The motion carried by the following vote:

Aye: 5 - Bird, Swanson
, Gregg, Bennington, and Lee
Nay: 0

1. Consideration of the Draft Minutes from the Special Meeting held Tuesday, June 20, 2023.

Recommended Action:

It is recomm
ended that the City Council approve the Draft Minutes from the Special Meeting held
Tuesday, June 20, 2023.

Sponsors: Assistant City Clerk Erin Baum

2. Warrant Run Report (City - Successor Agency - Housing Authority - Community Development Comm
ission - Water)
Recommended
Action:

It is recommended that the Council/Board ratify the warrant run and payroll report for the City, Succes sor Agency to the Hes
peria Community Redevelopm ent
Agency, Hesperia Housing Authority, Comm unity
Developm
ent Commission, and Water District.

Sponsors: Assistant City Manager Casey Brooksher

3. Treasurer’s Cash Report for the unaudited period ended May 31, 2023.

Recommended Action:

City of Hesperia
It is recommended that the Council/Board accept the Treasurer’s Cash Report for the City, Successor Agency to the Hesperia Community Redevelopment Agency, Hesperia Housing Authority, Community Development Commission, and Water District.

Sponsors: Assistant City Manager Casey Brooksher

4. Designation of Officers for Local Agency Investment Fund Recommended Action:

It is recommended that the City Council adopt Resolution No. 2023-40 and the Board of Directors of the Hesperia W
ater District adopt Resolution HWD 2023-13, authorizing the investment of monies in the
Local
Agency Investment Fund (LAIF) for the City of Hesperia.

Sponsors: Assistant City Manager Casey Brooksher

5. Bond Opportunities for Land Development (BOLD) Update Recommended Action:

It is recommended that the City Council and Board of Directors of the Hesperia Water District (HW D) approve Joint Res
olution No. 2023-45 and H W
D Resolution No. 2023-16 updating Authorized Officers of the Bond Opp
ortunities for Land Development (BOLD) Program.

Sponsors: Assistant City Manager Casey Brooksher

6. Consideration of Contract with NEOGOV Human Resources Management Software Recommended Action:

It is recommended that the City Council authorize the City Manager to enter into a five-year agreem ent with NEOGOV
in an amount not-to-exceed $216,052, to provide
human resources m anagement
software.

Sponsors: Assistant Cit
y Manager Casey Brooksher

7. Three-Year Enterprise Agreement with SoftwareOne Inc.

Recommended Action:

It is recommended that the City Council authorize the City Manager to approve a new three- year Enterprise Agreem
ent with SoftwareOne Inc., for a not-to-exceed
contract amount of $339,113, for
Microsoft sof
tware products licensing.

Sponsors: Assistant City Manager Casey Brooksher

8. Amend Agreement with Fieldman, Rolapp & Associates for Financial Advisory Services Recommended Action:

It is is recommended that the City Council and Board of Directors of the Hesperia Water District authorize
the Cit
y Manager to amend the current agreement with Fieldm
an, Rolapp & Associates in the amount of
$34,200 for f
inancial advisory services related to assessing the financial capacity needed for funding and operating a was
tewater treatment plant, for a total not-to-exceed contract amount of $84,200.

Sponsors: Assistant City Manager Casey Brooksher

9. Revised Combined Compensation Schedules
Recommended Action:

It is recommended that the City Council and Board of Directors of the Hesperia Housing Authority (HHA)
and Hesperia W
ater District (HWD) adopt Joint Resolution
No. 2023-44, HHA 2023-07, HWD 2023-14
approving the
City’s Fiscal Year (FY) 2022-23 revised Combined Compensation Schedule and FY 2023-24 Combined Compensation Schedule.

Sponsors: Assistant City Manager Casey Brooksher and Deputy Human

City of Hesperia
Resources/Risk Management Director Rita Perez

10. Radio Maintenance and Access Agreement with San Bernardino County Recommended Action:

It is recommended that the City Council authorize the City Manager to execute a five-year access and
m
aintenance contract with San Bernardino County in the
amount of $61,994, plus a 10% contingenc y
amount of
$6,199, for a total not-to-exceed contract amount of $68,193, to provide access and m
aintenance for 19 City radios.

Sponsors: Deputy City Manager/City Clerk Melinda Sayre

11. Award of Contract for Shelter Medication and Veterinary Supplies Recommended Action:

It is recommended that the City Council authorize the City Manager to execute a one-year contract with
Midwest Veter
inary Supply in the not-to-exceed contract amount
of $152,000, to provide medications an d
veterinar
y supplies for the City’s animal shelter.

Sponsors: Deputy City Manager/City Clerk Melinda Sayre
This item was considered independently of the Joint Consent Calendar.

A motion was made by Gregg, seconded by Bird, that item number 11 be approved. The motion carried by the following vote:

Aye: 5 - Bird, Swanson, Gregg, Bennington,
and Lee
Nay: 0

12. Contract for a Swaploader Conversion
Recommended Action:

It is recommended that the City Council authorize the City Manager to enter into an agreement with PB
Loader Corpor
ation for a not-to-exceed contract amount of
$165,000, for a swaploader conversion on an
existing Cit
y fleet vehicle.

Sponsors: Director of Public Works Jeremy McDonald

13. Award of Contract for Road Striping and Pavement Marking Services Recommended Action:

It is recommended that the City Council authorize the City Manager to enter into a one-year agreem ent
with Superior Pa
vement Markings, Inc. in a not-to-exceed contract amount of $147,000, for road striping
and pavem
ent marking services.

Sponsors: Director of Public Works Jeremy McDonald

14. Warehouse Commodity - Mueller Parts
Recommended Action:

It is recommended that the Board of Directors of the Hesperia Water District authorize the City Manager
to enter into a on
e (1) year agreement with Core & Main
in a not-to-exceed contract amount of $240,000,
for the purchase of Mueller water products.

Sponsors: Director of Public Works Jeremy McDonald

15. Real Property Purchase and Sale Agreement - APN 0405-272-18 Recommended Action:

City of Hesperia
It is recommended that the City Council adopt Resolution No. 2023-046: (i) approving the "Agreement For The Purchase And Sale Of Real Property And Joint Escrow Instructions" (Agreement) by and between Obeidat Enterprise LLC (Seller) and the City of Hesperia (Buyer); and (ii) authorizing the City Manager to execute all documents necessary to consummate the transaction.

Sponsors: Economic Development Manager Victor Knight

16. Special Assessment of Enforcement and Abatement Costs Recommended Action:

It is recommended that the City Council and the Board of Directors of the Hesperia W ater District approve
Joint Resoluti
on No. 2023-32 and Resolution No. HW
D 2023-07, confirming parcels of land upon which
unpaid fees for
services, and enforcement and abatement costs remain, and Joint Resolution No. 2023-33 and Resolution No. HWD 2023-08, requesting that San Bernardino County place the unpaid fees for services, and enforcement and abatement costs on the property tax rolls.

Sponsors: Administrative Analyst Jacquelyn Castillo

CONSENT ORDINANCES

17. Amendments to Title 5 and Title 16 of the Hesperia Municipal Code Related to Licensing and Regulat ion of T
obacco Retailers
Recommended Action:

Place on second reading a
nd adopt by title waiving the text of Ordinance No. 2023-10, amending Title 5 and
Title 16 of the Hesperia Municipal Code related to
Licensing and Regulation of Tobacco Retailers as
amended at the Ju
ne 20, 2023 City Council Meeting.

Sponsors: Administrative Analyst Jacquelyn Castillo
A motion was made by Gregg, seconded by Swanson, that this item be approved. The motion carried by th
e following vote:

Aye: 5 - Bird, Swanson, Gregg, Bennington, and Lee
Nay: 0

PUBLIC HEARING

18. Resolution to Ratify the San Bernardino County Fire Code Recommended Action:

It is recommended that the City Council:

1. Adopt Resolution No. 2023-048, ratifying San
Bernardino County Fire Protection District’s
(Fire
District) Ordinance No. FPD 23-01; and

2. Direct the Building Official to, within fifteen days, transmit a certified copy of this item to the Fire District; and also s
ubmit a copy, along with the Fire District’s ordinance, to the California Building Standards Com
mission (BSC).

Sponsors: Director of Development Services Nathan Freeman A motion was made by Swanson, seconded by Lee, that this item be approved. The motion carried by the following vote:

Aye: 5 - Bird, Swanson, Gregg, Bennington, and Lee
Nay: 0

City of Hesperia

NEW BUSINESS

19. Hesperia Community Farmer’s Market
Recommended Action:

It is recommended that the City Council approve Resolution 2023-049 recognizing the Hesperia Community Farmer’s Market as an essential business
in the City of Hesperia and provide direction to
staff on opportun
ities to further support the Hesperia Community Farmer’s Market.

Sponsors: City Manager Rac
hel Molina
A motion was made by Gregg, seconded by Lee, that this item be approved. The motion carried b y the follow
ing vote:

Aye: 5 - Bird, Swanson, Gregg, Bennington, and Lee
Nay: 0

COUNCIL COMMITTEE REPORTS AND COMMENTS
The Mayor, Mayor Pro Tem, and Council Members reported from various events and Committees.

Council Member Gregg requested an item be brought forward at the next meeting to discuss City Ordinance number 2, City Council Procedures Manual chapter 6, section A.3, and a memo to staff.

Council Member Lee requested a report on the number of fireworks citations issued on the Fourth of July.

Council Member Swanson requested that the Hesperia Branch Librarian be invited to participate in future Tri-Agency meetings.

CITY MANAGER/CITY ATTORNEY/STAFF REPORTS
The City Manager thanked all in attendance to extend their welcome.

ADJOURNMENT
The meeting was adjourned at 8:27 p.m.
_____________________________
Erin Baum,
Assistant City Clerk

City of Hesperia

STAFF REPORT
DATE: August 1, 2023
TO: Mayor and Council Members
City Council, as Successor Agency to the Hesperia Community Redevelopment Agency
Chair and Commissioners, Hesperia Housing Authority
Chair and Commissioners, Community Development Commission Chair and Board Members, Hesperia Water District
FROM: Rachel Molina, City Manager
BY: Casey Brooksher, Assistant City Manager
Anne Duke, Deputy Finance Director
Jonathan Settle, Accountant
SUBJECT: Warrant Run Report (City – Successor Agency – Housing Authority – Community Development Commission – Water)

RECOMMENDED ACTION
It is recommended that the Council/Board ratify the warrant run and payroll report for the City, Successor Agency to the Hesperia Community Redevelopment Agency, Hesperia Housing Authority, Community Development Commission, and Water District.

BACKGROUND
The Warrant Run totals represented below are for th e period June 10, 2023 through June 30, 2023.

ATTACHMENT(S)

1. Warrant Runs
Agency/District Accounts Payable Payroll Wires Totals
City of Hesperia $18,350,052.79 $515,562.43 $0.00 $18,865,615.22 Successor Agency 0.00 0.00 0.00 0.00
Housing Authority 591.50 182.20 0.00 773.70
Community Development Commission 0.00 0.00 0.00 0.00
Water 260,226.73 200,985.22 0.00 461,211.95
Totals $18,610,871.02 $716,729.85 $0.00 $19,327,600.87

YEAR-TO PRIOR FY YTD

W/E W/E W/E WARRANT DATE DATE
FUND # FUND NAME 6/16/2023 6/23/2023 6/30/2023 TOTALS Wires TOTALS * TOTALS Accounts Payable
100 GENERAL 507,656.29 $ 1,349,779.30 $ 208,944.75 $ 2,066,380.34 $ - $ 29,473,593.83$ 27,398,402.09$ 105 PENSION OBLIGATION TRUST -$ 3,400,000.00$ -$ 3,400,000.00$ - $ 3,400,000.00$ -$ 106 OPEB TRUST -$ 600,000.00$ -$ 600,000.00$ - $ 600,000.00$ -$ 200 HESPERIA FIRE DISTRICT -$ -$ -$ -$ - $ -$ -$
204 MEASURE I - RENEWAL -$ -$ -$ -$ - $ 284,637.88$ 575,481.42$ 207 LOCAL TRANSPORT-SB 325 121.00$ -$ -$ 121.00$ - $ 311,825.64$ 29,458.14$ 209 GAS TAX-RMRA -$ -$ -$ -$ - $ 880.00$ 68,083.24$ 210 HFPD (PERS) -$ 1,200,000.00$ -$ 1,200,000.00$ - $ 2,293,204.87$ 1,007,746.00$ 251 CDBG 10,331.05$ 1,392.83$ -$ 11,723.88$ - $ 882,422.83$ 1,578,813.65$ 254 AB2766 - TRANSIT -$ -$ -$ -$ - $ -$ -$
256 ENVIRONMENTAL PROGRAMS GRANT 49.38$ 9,554.42$ 1,675.07$ 11,278.87$ - $ 43,694.03$ 39,355.65$ 257 NEIGHBORHOOD STABILIZATION PROG -$ -$ -$ -$ - $ -$ -$ 262 SB 1383 LOCAL ASSISTANCE GRANT -$ -$ 1,673.58$ 1,673.58$ - $ 33,272.27$ -$
263 STREETS MAINTENANCE 33,562.15$ 35,284.94$ 18,382.48$ 87,229.57$ - $ 1,882,508.61$ 1,660,375.03$ 300 DEV. IMPACT FEES - STREET -$ 5,237,114.00$ -$ 5,237,114.00$ -$ 5,277,770.18$ 51,997.86$ 301 DEV. IMPACT FEES - STORM DRAIN -$ -$ -$ -$ - $ 17,460.50$ 98,384.50$ 302 DEV. IMPACT FEES - FIRE -$ -$ -$ -$ - $ -$ -$ 303 DEV. IMPACT FEES - POLICE -$ -$ -$ -$ - $ -$ 23,330.00$ 304 DEV. IMPACT FEES - PUBLIC WKS. -$ -$ -$ -$ - $ -$ -$ 306 DEV. IMPACT FEES - 2018-STREETS 274.88$ 4,722,167.03$ -$ 4,722,441.91$ - $ 10,681,656.36$ 2,770,483.20$ 312 DIF 2018-POLICE FACILITIES -$ -$ -$ -$ - $ 7,969.11$ 6,888.17$ 313 DIF A-04 DRAINAGE -$ -$ -$ -$ -$ 6,270.00$ 964,464.00$ 396 DEVELOPMENT IMPACT -$ -$ -$ -$ - $ -$ -$
399 FEMA-1203-DR (DISASTER) -$ -$ -$ -$ - $ -$ -$ 400 2004 STREETS -$ -$ -$ -$ - $ -$ -$
401 CITY DEBT SERVICES -$ -$ -$ -$ - $ -$ -$
402 WATER RIGHTS ACQUISITION -$ -$ -$ -$ - $ 1,432,851.95$ 1,437,093.88$
403 2013 REFUNDING LEASE REV BONDS -$ -$ -$ -$ -$ 872,892.46$ 866,085.83$ 501 CFD 91-3 BELGATE -$ -$ -$ -$ - $ -$ -$
504 CITY WIDE STREETS - CIP -$ 448,535.62$ -$ 448,535.62$ - $ 9,860,894.25$ 2,991,257.21$ 509 CITY FACILITIES CIP -$ -$ -$ -$ - $ -$ -$
800 EMPLOYEE BENEFITS 181,744.62$ 158,195.11$ 149,297.02$ 489,236.75$ - $ 9,008,192.66$ 7,534,579.75$ 801 TRUST/AGENCY 71,904.61$ 1,305.00$ 395.16$ 73,604.77$ - $ 1,877,134.88$ 2,879,394.39$ 802 AD 91-1 AGENCY -$ -$ -$ -$ -$ -$ -$
804 TRUST-INTEREST BEARING -$ -$ 712.50$ 712.50$ - $ 213,461.00$ 89,435.00$ 807 CFD 2005-1 -$ -$ -$ -$ - $ 1,302,827.50$ 1,282,148.77$ 808 HFPD (TRANSITION) -$ -$ -$ -$ - $ 317,384.59$ 369,875.18$ 815 PLAN REVIEW TRUST - FRONTIER -$ -$ -$ -$ - $ 6,584.08$ -$ CITY 805,643.98$ 17,163,328.25$ 381,080.56$ 18,350,052.79$ - $ 80,089,389.48$ 53,723,132.96$
163 REDEVELOP OBLIG RETIREMENT-2018 -$ -$ -$ -$ -$ 9,708,465.48$ 9,999,319.34$ SUCCESSOR AGENCY -$ -$ -$ -$ - $ 9,708,465.48$ 9,999,319.34$ 370 HOUSING AUTHORITY -$ -$ 591.50$ 591.50$ - $ 51,707.69$ 52,582.66$ HOUSING AUTHORITY -$ -$ 591.50$ 591.50$ - $ 51,707.69$ 52,582.66$ 170 COMMUNITY DEVELOPMENT COMMISSION -$ -$ -$ -$ - $ -$ -$ COMMUNITY DEVELOPMENT COMMISSION -$ -$ -$ -$ - $ -$ -$ 700 WATER OPERATING 151,296.86$ 34,156.89$ 38,170.47$ 223,624.22$ - $ 9,868,541.24$ 14,275,339.32$ 701 WATER CAPITAL -$ -$ -$ -$ - $ 98,459.00$ 91,014.27$ 710 SEWER OPERATING 30,434.85$ 15.03$ 2,870.63$ 33,320.51$ - $ 4,824,905.00$ 6,283,047.97$ 711 SEWER CAPITAL -$ -$ 3,282.00$ 3,282.00$ - $ 1,120,429.69$ 174,987.87$ 713 SEWER CAPITAL REHAB AND REPLACE -$ -$ -$ -$ - $ -$ -$ 720 RECLAIMED WATER OPERATIONS -$ -$ -$ -$ - $ 265,471.51$ 238,606.27$ WATER 181,731.71$ 34,171.92$
44,323.10$ 260,226.73$ - $ 16,177,806.44$ 21,062,995.70$ ACCOUNTS PAYABLE TOTAL 987,375.69$ 17,197,500.17$ 425,995.16$ 18,610,871.02$ - $ 106,027,369.09$ 84,838,030.66$ REG. PAYROLL
City -$ 320,606.29$ 194,956.14$ 515,562.43$ - $ 7,472,920.91$ 6,535,435.18$ Housing Authority -$ 182.20$ -$ 182.20$ - $ 4,727.44$ 2,294.97$ Water -$ 118,101.40$ 82,883.82$ 200,985.22$ - $ 3,034,990.90$ 2,850,134.61$ PAYROLL TOTAL -$ 438,889.89$ 277,839.96$ 716,729.85$ - $ 10,512,639.25$ 9,387,864.76$ City of Hesperia

WARRANT RUNS
06/10/2023 - 06/30/2023
*No payments were issued on July 1, 2022.

Attachment 1

City of Hesperia

STAFF REPORT
DATE: August 1, 2023
TO: Mayor and Council Members
Chair and Board Members, Hesperia Water District
FROM: Rachel Molina, City Manager
BY: Casey Brooksher, Assistant City Manager
Michael Assumma, Information Systems Manager
SUBJECT: Amend Contract with Tyler Technologies

RECOMMENDED ACTION
It is recommended that the City Council and Board of Directors of the Hesperia Water District authorize the City Manager to amend the current contract with Tyler Technologies in the amount of $10,000 for a total not-to-exceed contract amount of $ 642,015, for maintenance, software, licensing and customization support for the New World Financial System and MyCivic Citizen Engagement platform.

BACKGROUND
The City currently contracts with Tyler Technologies for software products, most notably the New World Enterprise Resource Planning (ERP) suite , which facilitates a variety of finance, accounting, payroll, and human resources functions . In addition, at the beginning of 2023 the contract was amended to include the MyCivic Citizen Engagement application.

ISSUES/ANALYSIS
The Information Technology and Utility Billing Divisions have identified several potential software customizations that would streamline the import of data from various payment processors into New World, which would serve to save dozens of man -hours of ted ious data entry. However, implementing these changes would require the assistance of experts from Tyler Technologies, and customizations of this nature are not included in the baseline maintenance contract.

An amendment to the contract with Tyler Technologies is necessary for software customization projects that would allow the automation of data import/export between New World and other information systems utilized by the City. Automating these processes would save City staff valuable time, and enhanc e the flow of data across information platforms and business units, allowing staff to use the City’s data in novel and insightful ways. While the payment processor to New World import flow is the most urgent customization, this amendment would fund other identified customizations that will enhance the way in which the City conducts its operations.

FISCAL IMPACT
Funding is included in the Adopted Fiscal Year 2023-24 Budget and will continue to be included in the annual budget.

Staff Report to the Mayor, Council Members, and the Board of Directors of the Hesperia Water District Amend Contract with Tyler Technologies
August 1, 2023

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)
None

City of Hesperia

STAFF REPORT
DATE: August 1, 2023
TO: Mayor and Council Members
FROM: Rachel Molina, City Manager
BY: Jeremy McDonald, Director of Public Works
Marc Morales, Management Analyst
SUBJECT: Award of Contract for Overhead Street Name Signs

RECOMMENDED ACTION
It is recommended that the City Council authorize the City Manager to enter into a one (1) year agreement with Safeway Sign Company in a not-to-exceed contract amount of $56,537, for the purchase of overhead street name signs.

BACKGROUND
The Public Works Traffic Program is responsible for maintaining twenty-eight (28) traffic signals throughout the City including the overhead street name signs. These overhead street name signs are affixed to the mast arm of the traffic signal and deteriorate over time from being exposed to the outdoor elements. This includes faded signs , which reduces the reflectivity for motorists to see at night and hardware issues from the signs swinging in the wind. Public Works has inspected the overhead street name signs and recommends the overhead signs be replaced in order meet the guidelines of the Manual on Uniform Traffic Control Devices (MUTCD).

ISSUES/ANALYSIS
In order to procure the overhead street name signs and hardware, the City prepared a formal bid that was released on June 22, 2023 and closed on July 6, 2023. The City received the following bids:

Safeway Sign
Company
SC Signs & Supplies Zumar Industries Maneri Sign
Company
$56,536.43 $58,605.23 $86,846.10 $93,156.90
Upon review of the submitted bids, Safeway Sign Company was deemed the lowest responsible/responsive bidder to provide the overhead street name signs and hardware.

FISCAL IMPACT
Funding has been included in the Fiscal Year 2023-24 Operating Budget

Staff Report to the Mayor and Council Members
Award of Contract for Overhead Street Name Signs
August 1, 2023

ALTERNATIVES

1. Provide alternative direction to staff.

ATTACHMENTS
None

City of Hesperia

STAFF REPORT
DATE: August 1, 2023
TO: Chair and Board Members, Hesperia Water District
FROM: Rachel Molina, City Manager
BY: Jeremy McDonald, Director of Public Works
Robert Worby, Fleet/Warehouse Supervisor
SUBJECT: Vehicle Procurement – Two Mid-Size Trucks

RECOMMENDED ACTION
It is recommended that the Board of Directors of the Hesperia Water District (HWD) authorize the City Manager to approve the procurement of two (2) 2023 Ford Ranger 4 x 4 trucks for the Production Program; adopt Resolution HWD No. 2023 -13 amending the Fiscal Year (FY) 2023-24 Budget by appropriating $64,000; and authorize the purchase from Fairview Ford.

BACKGROUND
The Fiscal Year (FY) 2022-23 Budget included funding for the replacement of two full-size trucks in the Production Program. These existing units (both purchased in 2006 with over 116,000 and 161,000 miles) have reached the end of their useful lifespan as annual costs attributed to maintaining the assets exceed salvage value.

ISSUES/ANALYSIS
The Public Works Division released a formal request for bid (RFB) on July 28, 2022 and solicited bids from twelve vendors both locally and out of the area to maximize bid response. A public bid opening was held on August 16, 2022, and two responses were received including Victorville Chevrolet, with Fairview Ford deemed to be the lowest responsive/responsible vendor. On September 6, 2022 , the Board of Directors authorized the procurement of the trucks however, due to disruptions in the supply chain including manufacturing delays, the vehicles are not able to be delivered until FY 2023-24.

FISCAL IMPACT
The FY 2023-24 Adopted Budget does not include funds allocated for the vehicles; therefore staff is requesting approval from the Boa rd of Directors to increase Water Operating Fund 700 by $64,000 for FY 2023-24 via Resolution HWD 2023-13.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

1. Resolution HWD 2023-13

RESOLUTION NO. HWD 2023-13

A RESOLUTION OF THE HESPERIA WATER DISTRICT OF THE CITY OF HESPERIA, CALIFORNIA, AMENDING THE FISCAL YEAR 202 3-24

HESPERIA WATER DISTRICT BUDGET BY APPROPRIATING AN
ADDITIONAL $64,000 IN FUND 700 WATER OPERATIONS
WHEREAS, the Board of Directors of the Hesperia Water District adopted the Fiscal Year (FY) 2023-24 Budget on June 20, 2023; and
WHEREAS, due to manufacturing delays, the trucks were not delivered during FY 2022-23 and the anticipated total expenditure of $64,000 will occur in the FY 2023-24 Budget; and WHEREAS, the FY 2023-24 Budget does not include $64,000 for the purchase of two (2) 2023 Ford Ranger mid-size 4 x 4 trucks; and
WHEREAS, a budget amendment is needed to appropriate funds to the Water Production budget; and
WHEREAS, the Board of Directors of the Hesperia Water District has reviewed the proposed budget amendment for the procurement of the vehicles and has found it acceptable.

NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS O F THE HESPERIA WATER DISTRICT AS FOLLOWS:

Section 1. That the recitals above are true and correct and adopted as findings.

Section 2. That the District hereby ame nds the FY 2023-24 Water Operating Budget and appropriates $64,000 to Account 700-29-400-4020-8420.

Section 3. That the Board Secretary shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

ADOPTED AND APPROVED this 1st day of August 2023.
_________________________________________
Brigit Bennington, Chair
ATTEST:
_______________________________
Erin Baum, Secretary to the Board

City of Hesperia

STAFF REPORT
DATE: August 1, 2023
TO: Chair and Board Members, Hesperia Water District
FROM: Rachel Molina, City Manager
BY: Jeremy McDonald, Director of Public Works
Marc Morales, Management Analyst
SUBJECT: Award of Contract for a Swaploader Conversion

RECOMMENDED ACTION
It is recommended that the Board of Directors of the Hesperia Water District (District) authorize the City Manager to enter into an agreement with PB Loader Corporation for a not -to-exceed contract amount of $52,408, for a swaploader conversion on an existing District fleet vehicle.

BACKGROUND
The Water Distribution Program currently has one (1) dump truck and one (1) dump trailer. These are utilized for hauling and removing dirt, debris, class II base, etc. for daily operations on the water system. The current need for the program is to have two (2) dump trucks with the dump trailer being utilized as a backup.

ISSUES/ANALYSIS
Public Works’ staff researched the cost for a new dump truck and determined swaploader conversion to an existing Ford F-550 chassis is a cost-effective solution. The swaploader system utilizes a hook -lift system that is mounted to the truck chassis and an A -Frame mount that is fabricated on existing truck attachments. This allows different truck attachments to be hoisted and secured to the truck. In addition, Public Works’ staff requested a demo on the operation of the swaploader and determined this would be beneficial to the fleet.

For this swaploader conversion, an A-Frame will be mounted to an existing dump bed, which is available from an inoperable dump truck within the District’s fleet, and a flat bed, which is currently on the existing F-550 chassis. With this setup, a single truck can operate as a dump truck and flat bed truck. This gives versatility for a single truck to perform multiple operations, which can be done with a single operator.

To procure the swaploader conversion, the City prepared a formal bid that was released on June 28, 2023 and closed on July 12, 2023. The City received the following bids:

PB Loader Corporation Crane-Works Southwest, Inc.
$52,407.69 $80,387.01
Upon review of the submitted bids, PB Loader Corporation was deemed the lowest responsible/responsive bidder for the swaploader conversion.

Staff Report to the Chair and Board Members of the Hesperia Water District Award of Contract for a Swaploader Conversion
August 1, 2023

FISCAL IMPACT
Funding has been included in the Fiscal Year 2023-24 Water Operating Budget.

ALTERNATIVES
Provide alternative direction to staff.

ATTACHMENTS

1. Bid Comparison

2. Cost Analysis

Bid Comparison Type: Taxable
Bid Comparison Completed By: Purchasing
Date:

PB Loader Corporation Craneworks Southwest INC
Extended Price Extended Price
1 LS
Swaploader SL-105 conversion on F550, flat bed, dump body, and all required materials and labor listed in the scope of work $45,854.00 $73,213.00 2 LS Sales Tax 7.75% $3,553.69 $5,674.01
3 LS
Freight (pick up vehicle and equipment from City
and deliver vehicle and equipment to City) $3,000.00 $1,500.00 $52,407.69 $80,387.01
$52,407.69 $80,387.01
$0.00 ($0.00)

WINNING BID
7/12/2023
Unit
of
Measure
Local Bid Preference (Deduct 1% for Bidders located in Hesperia) No. Description
Total Cost
Bid Submitted
Difference
Attachment 1

Attachment 2

City of Hesperia

STAFF REPORT
DATE: August 1, 2023
TO: Mayor and Council Members
FROM: Rachel Molina, City Manager
BY: Nathan Freeman, Director of Development Services
Dani Fox, Deputy Development Services Director
Bethany Hudson, Assistant Project Manager
SUBJECT: Final Map No. 18955-5

RECOMMENDED ACTION
It is recommended that the City Council adopt Resolution No. 2023-50 approving Final Map No. 18955-5 to create 69 residential lots on approximately 21.4 gross acres and accept right-of-way necessary to develop Tract 18989 -1 Lot 5, Planning Area 5 of the Tapestry Specific Plan (Applicant: Silverwood Development Phase I, LLC).

BACKGROUND
On January 26, 2016, the City Council approved Tentative Tract Map No. 18955 to create 2,104 residential unit lots on 986 gross acres within the Tapestry Specific Plan , now known as the Silverwood Project, located south of Ranchero Road at the intersection of I Avenue . Final Map 18955-5 subdivides Lot 5, Planning Area 5 of Final Map 18989-1 to create 69 residential lots on approximately 21.4 gross acres and dedicates the in-tract right-of-way for utility infrastructure , streets, easements, open space, and parks within the Silverwood Project.

Staff has reviewed the final map and has determined that it complies with the Tapestry Specific Plan, the Tapestry Development Agreement, the General Plan, zoning regulations, all required conditions of approval, and all local ordinances related to the creation of these parcels. The developer has executed a Subdivision Improvement Agreement in accordance with local ordinances and the Subdivision Map Act and posted the necessary bonds for offsite improvements.

ISSUES/ANALYSIS
There are no issues identified with this item.

FISCAL IMPACT
There are no significant fiscal impacts to the City related to this action.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

Staff Report to the Mayor and Council Members
Final Tract Map 18955-5
August 1, 2023

ATTACHMENT(S)

1. Resolution No. 2023-50

2. Final Tract Map No. 18955-5

RESOLUTION NO. 2023-50

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPER IA, CALIFORNIA, APPROVING FINAL TRACT MAP NO. 18955-5 TO CREATE 69 LOTS ON APPROXIMATELY 21.4 GROSS ACRES AND ACCEPT RIGHT -OF- WAY NECESSARY TO DEVELOP TRACT 18989-1, LOT 5, PLANNING AREA 5 OF THE TAPESTRY SPECIFIC PLAN (APPLICANT: SILVERWOOD

DEVELOPMENT PHASE I, LLC)
WHEREAS, on January 26, 2016, the City Council recommended that Tentative Tract Map No. 18955 for approval; and
WHEREAS, Tentative Tract Map No. 18955 is to create a total of 2,104 residential unit lots on 986 gross acres; and
WHEREAS, Tract Map No. 18955-5 is to create 69 lots on 21.4 gross acres within the Tapestry Specific Plan; and
WHEREAS, Tract Map No. 18955-5 is to accept right-of-way for the in-tract infrastructure; and WHEREAS, all legal prerequisites to the adoption of this resolution have occurred.

NOW THEREFORE , BE IT RESOLVED BY THE CITY OF HESPERIA CITY COUNCIL AS FOLLOWS:

Section 1. Final Tract Map No. 18955-5 is hereby approved, and the City Clerk is authorized to present same to the County Recorder to be filed for record.

Section 2. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

ADOPTED AND APPROVED this 1st day of August 2023.

Brigit Bennington
Mayor
ATTEST:

Erin Baum
Assistant City Clerk

City of Hesperia

STAFF REPORT
DATE: August 1, 2023
TO: Mayor and Council Members
FROM: Rachel Molina, City Manager
BY: Nathan Freeman, Director of Development Services
Dani Fox, Deputy Development Services Director
Bethany Hudson, Assistant Project Manager
SUBJECT: Final Map No. 18955-7

RECOMMENDED ACTION
It is recommended that the City Council adopt Resolution No. 2023-51 approving Final Map No. 18955-7 to create 46 residential lots on approximately 22.08 gross acres and accept right-of-way necessary to develop Tract 18989 -1 Lot 7, Planning Area 8 of the Tapestry Specific Plan (Applicant: Silverwood Development Phase I, LLC).

BACKGROUND
On January 26, 2016, the City Council approved Tentative Tract Map No. 18955 to create 2,104 residential unit lots on 986 gross acres within the Tapestry Specific Plan , now known as the Silverwood Project, located south of Ranchero Road at the intersection of I Avenue. Final Map 18955-7 subdivides Lot 7, Planning Area 8 of Final Map 18989-1 to create 46 residential lots on approximately 22.08 gross acres and dedicates the in-tract right-of-way for utility infrastructure , streets, easements, open space and parks within the Silverwood project.

Staff has reviewed the final map and has determined that it complies with the Tapestry Specific Plan, the Tapestry Development Agreement, the General Plan, zoning regulations, all required conditions of approval, and all local ordinances related to the creation of these parcels. The developer has executed a Subdivision Improvement Agreement in accordance with local ordinances and the Subdivision Map Act and posted the necessary bonds for offsite improvements.

ISSUES/ANALYSIS
There are no issues identified with this item.

FISCAL IMPACT
There are no significant fiscal impacts to the City related to this action.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

Staff Report to the Mayor and Council Members
Final Tract Map 18955-7
August 1, 2023

ATTACHMENT(S)

1. Resolution No. 2023-51

2. Final Tract Map No. 18955-7

RESOLUTION NO. 2023-51

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPER IA, CALIFORNIA, APPROVING FINAL TRACT MAP NO. 18955-7 TO CREATE 46 LOTS ON APPROXIMATELY 22.08 GROSS ACRES AND ACCEPT RIGHT-OF- WAY NECESSARY TO DEVELOP TRACT 18989-1, LOT 7, PLANNING AREA 8 OF THE TAPESTRY SPECIFIC PLAN (APPLICANT: SILVERWOOD

DEVELOPMENT PHASE I, LLC)
WHEREAS, on January 26, 2016 the City Council recommended that Tentative Tract Map No. 18955 for approval; and
WHEREAS, Tentative Tract Map No. 18955 is to create a total of 2,104 residential unit lots on 986 gross acres; and
WHEREAS, Tract Map No. 18955-7 is to create 46 lots on 22.08 gross acres within the Tapestry Specific Plan; and
WHEREAS, Tract Map No. 18955-7 is to accept right-of-way for the in-tract infrastructure; and WHEREAS, all legal prerequisites to the adoption of this resolution have occurred.

NOW THEREFORE , BE IT RESOLVED BY THE CITY OF HESPERIA CITY COUNCIL AS FOLLOWS:

Section 1. Final Tract Map No. 18955-7 is hereby approved, and the City Clerk is authorized to present same to the County Recorder to be filed for record.

Section 2. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

ADOPTED AND APPROVED this 1st day of August 2023.

Brigit Bennington
Mayor
ATTEST:

Erin Baum
Assistant City Clerk

City of Hesperia

STAFF REPORT
DATE: August 1, 2023
TO: Mayor and Council Members
FROM: Rachel Molina, City Manager
BY: Casey Brooksher, Assistant City Manager
SUBJECT: Public hearing, landowner election, and actions related to formation of Community Facilities District No. 2023-1 (Silverwood Maintenance and Services)

RECOMMENDED ACTION
It is recommended that the City Council: 1) Conduct the public hearing and consider written and oral protests; 2) Adopt Resolution No. 2023-22 of formation of a Community Facilities District and Future Annexation Area; 3) Adopt Resolution No. 2023-53 calling a special landowner election for a community facilities district, and direct the City Clerk to complete the landowner elections ; 4) Adopt Resolution No. 2023-54 declaring the results of the special landowner election and, if the election is successful, direct recording of Notice of Special Tax Lien; and 5) Introduce Ordinance No. 2023-11 levying special taxes within the Community Facilities District (including any territory that annexes into the Community Facilities District from the Future Annexation Area).

BACKGROUND
The Mello -Roos Community Facilities Act of 1982 (Government Code Section 53311 and following) (the “Act”) contains the statutory framework pursuant to which the City of Hesperia (the “City”) or other local agencies may form a community facilities district (“CFD”) for the purpose of financing certain authorized public services or maintenance . A CFD may finance such services or maintenance through the levy of special taxes within the geographic boundaries of the CFD.

Additionally, to the extent a CFD is for med to pay for public facilities, bonds secured by such special taxes may be issued for a CFD . No bonds may be issued for a CFD formed to fund services. The property owners have filed petitions requesting the formation of the CFD.

In 2022, the City and its consultant NBS completed the Fiscal Impact Analysis (FIA) for the Silverwood Development. This analysis identified the fiscal impacts of the new development to the City. Additionally, the study looked to determine a funding mechanism for enhanced public safety services as well as funding for enhanced roadway maintenance services and trail maintenance for future Silverwood development.

To mitigate the negative fiscal impac ts associated with the se enhanced services, t he City is currently considering the formation of a CFD to fund maintenance and associated services related to the new Silverwood development. The City adopted Local Goals and Policies related to the use of CFDs at the April 1, 2008, City Council meeting as Resolution No. 2008-032, as required by the Act.

A petition was filed by the property owner, Tapestry Development Phase I LLC , requesting the City Council undertake proceedings under the Act and waive all applicable election notices and

Staff Report to the Mayor and Council Members
Public hearing, landowner election, and actions related to formation of a CFD.

August 1, 2023

waiting periods to expedite the completion of the district formation. On June 20, 2023, the City Council adopted a Resolution of Intention to fo rm the CFD and the Future Annexation Area, approving the Rate and Method of Apportionment of Special Tax ("RMA") for the CFD, calling a public hearing, and directing the Assistant City Manager to prepare and file with the City Clerk a CFD Report describing the services that will be provided by the CFD and an estimate of the fair and reasonable costs to provide the services and incidental expenses associated with the CFD.

ISSUES/ANALYSIS

Following tonight’s public hearing, the City Council may establish the CFD, and the Future Annexation Area, and call for a special landowner election. The property owner will vote on: (1) the levy of the special taxes on taxable property in the CFD pursuant to the RMA; and (2) the appropriations limit for the CFD.

The proposed proceedings for the CFD will establish a Future Annexation Area that coincides with the boundary of the Silverwood Specific Plan Area in order to allow for streamlined annexation of additional properties' zones into the CFD in the future. Parcels within the Future Annexation Area will be annexed to the CFD only with the unanimous approval of the owner of the parcels, as described in the Resolution of Formation, without further public hearings or additional proceedings.

Rate and Method of Apportionment

The Resolution of Intention included a description of the RMA. Pursuant to the RMA, the proposed special tax is to be levied on all taxable, non-exempt parcels within the CFD boundary.

Specifically, the RMA includes proposed special taxes for various land use categories as shown below. The RMA also includes additional details on inflationary increases for special taxes, procedures for appeals, exemptions, and other relevant information . The developer will be utilizing BOLD Financing Bonds under a separate CFD, CFD No. 2023 -11 (City of Hesperia – Silverwood), of which $200 per Unit will be allocated to the City for a total of $600 per Unit (for Non-Age Qualified Single -Family Detached Prop erty). The RMA includes transition language once the CMFA CFD No. 2023-11 Bonds have been fully repaid and the District determines that no additional BOLD Financing bonds are to be issued . As a result, the initial maximum special tax rates prior to the t ransition year will be $400 per Unit for Non-Age Qualified Single -Family Detached Property, which is approximately 67% of the $600 maximum special tax rate per Unit as shown in Table 1. Accordingly, all other rates were reduced by approximately 33% in order to determine the maximum special tax rates prior to the transition year as shown in Table 2 , which includes the $400 per Unit from the CFD and $200 per Unit previously issued from BOLD. After the transition year, the Maximum Special Tax for each parcel of Taxable Property will increase as shown in Table 2 below:

Staff Report to the Mayor and Council Members
Public hearing, landowner election, and actions related to formation of a CFD.

August 1, 2023

TABLE 1 – PRIOR TO THE TRANSITION YEAR

MAXIMUM SPECIAL TAX RATES
FISCAL YEAR 2023/24*
Land Use Category
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
*On each July 1, commencing on July 1, 2024, the Maximum Special Tax Rate shall be increased by the Tax Escalation Factor.

TABLE 2 – COMMENCING IN THE TRANSITION YEAR

MAXIMUM SPECIAL TAX RATES

Land Use Category
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
*On each July 1, commencing on July 1, 2024, the Maximum Special Tax Rate shall be increased by the Tax Escalation Factor.

The special taxes set forth in the table on the previous page are proposed to be levied within the boundaries of the CFD alone.

Additionally, the City and the Developer h ave agreed to periodically review the aforementioned rates on the following schedule based on the Developer’s phasing of development:
 After completion of Phase 1
 Prior to the start of Phase 5
 Prior to the start of Phase 6

Staff Report to the Mayor and Council Members
Public hearing, landowner election, and actions related to formation of a CFD.

August 1, 2023

Next Steps
The City Council will conduct the public hearing. The public hearing provides an opportunity for public inquiry into the formation of the CFD (including the RMA and the proposed services) and the Future Annexation Area. At the conclusion of the public hearing, the City Council is asked to consider and adopt the following resolutions:

1. A Resolution Establishing the Formation of a Community Facilities District and Future Annexation Area

2. A Resolution Calling a Special Election for a Community Facilities District

After calling the special election and receiving the sealed ballot, the City Clerk will open and tabulate the ballot and announce the results of the election. The number of votes allocated to the property owner is based on the number of acres; the Act specifies that each p roperty owner in the CFD will be allocated one vote for each acre or portion of an acre of taxable property owned in the CFD. The City Clerk will then complete the election canvass.

Assuming two-thirds of the votes cast at the election are in favor of the ballot measure, the City Council will consider and is asked to adopt the following resolution and introduce the following ordinance:

A Resolution Declaring Results of a Special Landowner Election and Directing the Recording of a Special Tax Lien (the City Clerk's canvass will be attached to this Resolution) and An Ordinance Authorizing the Levy of Special Taxes in Community Facilities District (the "Ordinance").

Following these actions, the City Clerk will record a Notice of Special Tax Lien against the parcels in the CFD within 15 days after the election. The Ordinance authorizes and levies the Special Tax in perpetuity within the CFD (including any properties that annex into the CFD from the Future Annexation Area) in accordance with the RMA. The Ordinance will go into effect 30 days from the date of final passage, which is anticipated for the City Council meeting on August 15, 2023.

FISCAL IMPACT

In order to provide enhanced public safety, roadway and trail maintenance services , the Fiscal Impact Analysis identified the necessary funding amounts by development type . As a policy matter with a goal of not hindering new Silverwood development, the City has determined to set an initial maximum special tax rate of $ 600 for Non-Age Qualified Single -Family Detached Property, which is approximately 70% of the rate identified in the Fiscal Impact Analysis. As so, all other rates were reduced by approximately 30% in order to determine the initial maximum special tax rates.

However as mentioned above, the developer will be utilizing BOLD Financing under a separate community facilities district, CFD No. 2023-11 (City of Hesperia – Silverwood). As a result, the initial maximum special tax rates prior to the transition year will be $400 fo r Non-Age Qualified Single-Family Detached Property, which is approximately 67% of the $600 maximum special tax rate as shown in Table 1 . Accordingly, all other rates were reduced by approximately 33% in order to determine the maximum special tax rates pr ior to the transition year as shown in Table

2. The RMA includes transition language once the CMFA CFD No. 2023 -11 bonds have been fully repaid and the District determines that no additional BOLD Financing bonds are to be issued.

After the transition year, the Maximum Special Tax for each parcel of Taxable Property will

Staff Report to the Mayor and Council Members
Public hearing, landowner election, and actions related to formation of a CFD.

August 1, 2023

increase as shown in Table 3 below. The following table includes the estimated budget to mitigate negative fiscal impacts and provide services as well as the costs to administer the CFD.

TABLE 3 – COMMENCING IN THE TRANSITION YEAR

Description
Maximum
Special Tax
Rate
Anticipated
Number of
Units
Estimate
Special Tax
Revenue
Non-Age Qualified Apartment Property $510.00 1,328 $677,280 Non-Age Qualified Single-Family Attached Property 540.00 1,709 922,860 Non-Age Qualified Single-Family Detached Property 600.00 8,097 4,858,200 Age Qualified Single-Family Attached Property 540.00 454 245,160 Age Qualified Single-Family Detached Property 570.00 4,075 2,322,750 Hotel Property 0.13 270,000 35,100
Retail/Restaurant Property 0.21 750,000 157,500
Office Property 0.34 350,000 119,000
Undeveloped Property 1,844.58 N/A Acre
CFD Administration Costs 6,000

$9,343,850

The cost of formation of the CFD is approximately $38,500, which will be borne by the Petitioners.

ALTERNATIVE(S)

1. The Council may provide alternative direction to Staff.

ATTACHMENT(S)

1. Resolution No. 2023-22 Establishing the Formation of a Community Facilities District and Future Annexation Area

2. Resolution No. 2023-53 Calling a Special Election for a Community Facilities District

3. Resolution No. 2023-54 Declaring Results of a Special Landowner Election and Directing the Recording of a Special Tax Lien

4. Ordinance No. 2023-11 Authorizing the Levy of Special Taxes in Community Facilities District

5. CFD Special Tax Report

RESOLUTION NO. 2023-22

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA, STATE

OF CALIFORNIA, ESTABLISHING THE FORMATION OF A COMMUNITY

FACILITIES DISTRICT AND FUTURE ANNEXATION AREA

CITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2023-1
(SILVERWOOD MAINTENANCE AND SERVICES)

WHEREAS, on June 20, 2023, this City Council (the “City Council”) of the City of Hesperia (the “City”) adopted Resolution No. 2023-22 entitled “A Resolution of the City Council of the City of Hesperia, State of California, Declaring its Intention to Establish a Community Facilities District and Future Annexation Area, and to Authorize the Levy of Special Taxes” (the “Resolution of Intention”), stating its intention to form the “City of Hesperia, Community Facilities District No. 2023-1 (Silverwood Maintenance and Services)” (the “District”) and “City of Hesperia Community Facilities District No. 2023 -1 ( Silverwood Maintenance and Services) (Future Annexation Area)” (the “Future Annexation Area”) , of the City pursuant to the Mello -Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code; hereafter referred to as the “Act”); and

WHEREAS, the Resolution of Intention, incorporating a map of the proposed boundaries of the District and Future Annexation Area and stating the services to be provided, the estimated cost of providing such services, and the rate and method of apportionment of the special tax to be levied within the District to pay for the services, is on file with the City Clerk and the provisions thereof are incorporated herein by this reference as if fully set forth herein; and

WHEREAS, under the Resolution of Intention, the Assistant City Maanger was directed to make, or cause to be made, and file with the City Clerk a report (the “Report”) in writing, presenting the services to be provided and an estimate of the reasonable cost of providing the services. The Report was prepared and submitted to the City Clerk prior to the public hearing described below; and

WHEREAS, the Resolution of Intention called for a public hearing pertaining to the formation of the District and Future Annexation Area and the levy of said special tax to be held on August 1, 2023; and

WHEREAS, appropriate notices were mailed, published and/or posted as required by law; and

WHEREAS, under the Resolution of Intention, the City Clerk was directed to cause notice of said public hearing to be given by publication one time in a newspaper published in the area of the District and Future Annexation Area, and the City Clerk caused the publication of such notice at least seven (7) days before the date set for said public hearing; and

WHEREAS, on August 1, 2023, this City Council held a noticed public hearing as required by the Act and the Resolution of Intention relative to the proposed formation of the District and Future Annexation Area; and

WHEREAS, at the public hearing all interested persons desiring to be heard on all matters pertaining to the formation of the District and Future Annexation Area , the services to be provided therein and the levy of such special tax were heard and a full and fair public hearing was held; and

WHEREAS, written protests with respect to the formation of the District and Future Annexation Area , the furnishing of specified types of services and the rate and method of apportionment of the special taxes have not been filed with the City Clerk by fifty percent (50%) or more of the registered voters residing within the territory of the District and Future Annexation Area or property owners of one-half (1/2) or more of the area of land within the District and Future Annexation Area and not exempt from the proposed special taxes; and

WHEREAS, the special tax proposed to be levied in the District and Future Annexation Area to pay for the proposed services has not been eliminated by protest by fifty percent (50%) or more of the registered voters residing within the territory of the District and Future Annexation Area or the owners of one -half (1/2) or more of the area of land within the District and Future Annexation Area and not exempt from the special taxes.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hesperia as follows:

1. The foregoing recitals are true and correct.

2. The proposed special tax to be levied within the District and Future Annexation Area has not been precluded by majority protest pursuant to Section 53324, 53339.6 and/or other applicable provisions of the Act.

3. All prior proceedings taken by the City Council in connection with the establishment of the District and Future Annexation Area and the levy of the special tax have been duly considered and are hereby found and determined to be valid and in conformity with the requirements of the Act. The City Council has heretofore adopted Local Goals and Policies for Community Facilities Districts, and the City Council hereby finds and determines that the District and Future Annexation Area are in conformity with said goals and policies.

4. The community facilities district designated as the “ City of Hesperia, Community Facilities District No. 2023-1 (Silverwood Maintenance and Services)” and the future annexation area designated as “City of Hesperia Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) (Future Annexation Area)” of the City is hereby established pursuant to the Act.

5. The District Report is hereby approved.

6. The boundaries of the District and Future Annexation Area, as set forth in the map entitled "Proposed Boundaries of City of Hesperia, Community Facilities District No. 2023-1 ( Silverwood Maintenance and Services) and Future Annexation Area, City of Hesperia, County of San Bernardino County, State of California" heretofore recorded in the San Bernardino County Recorder’s Office on June 27, 2023, in Book 91 at Page 21 as Document 2023-0157304 of Maps of Assessment and Community Facilities Districts, are hereby approved, are incorporated herein by reference, and shall be the boundaries of the District.

Parcels within the Future Annexation Area may be annexed to the District with the unanimous approval (each, a "Unanimous Approval") of the owner or owners of each parcel or parcels at the time that parcel or those parcels are annexed, without any requirement for further public hearings or additional proceedings or by annexation proceedings permitted by the Act.

7. The type of public services proposed to be funded by the District and Future Annexation Area and pursuant to the Act shall consist of those items shown in Exhibit A hereto and by this reference

incorporated herein (the “Services”). It is hereby found and determined that the Services are necessary to meet the increased demands as the result of development occurring in the District and Future Annexation Area.

8. Except to the extent that funds are otherwise available to the District to pay for the Services, a special tax sufficient to pay the costs thereof, secured by the recordation of a continuing lien against all non-exempt real property in the District, will be levied annually within the District pursuant to the Rate and Method of Apportionment, and collected in the same manner as ordinary ad valorem property taxes or in such other manner as the City Council or its designee shall determine, including direct billing of the affected landowners.

9. The Rate and Method of A pportionment of the special tax among the parcels of real property within the District, in sufficient detail to allow each landowner within the District to estimate the maximum amount such owner will have to pay, is shown in Exhibit B attached hereto and h ereby incorporated herein.

10. Territory in the Future Annexation Area will be annexed into the District and a special tax will be levied on such territory only with the Unanimous Approval of the owner or owners of each parcel or parcels at the time that parcel or those parcels are annexed into the District. Except to the extent that funds are otherwise available to the District to pay for the Services, a special tax sufficient to pay the costs thereof, secured by the recordation of a continuing lien against all non -exempt real property in the Future Annexation Area, is intended to be levied annually within the Future Annexation Area, and collected in the same manner as ordinary ad valorem property taxes or in such other manner as may be prescribed by this City Council. The City Council hereby determines that the special tax proposed to pay for Services to be supplied within the Future Annexation Area shall be equal to any special tax levied to pay for the same Services in the District, except that a higher or lower tax may be levied within the Future Annexation Area to the extent that the actual cost of providing the Services in the Future Annexation Area is higher or lower than the cost of providing those Services in the District. In so finding, the City Council does not intend to limit its ability to levy a special tax within the Future Annexation Area to provide new or additional services beyond those supplied within the District. The Special Taxes in the original CFD shall be designated as Tax Zone 1. Subsequent annexations may provide for different Zones or the same Zone as provided herein and therein.

11. The Assistant City Manager for the City, 9700 Seventh Avenue, City of Hesperia, California, 92345, telephone number (760) 947-1876, is the officer of the City who will be responsible for preparing annually a current roll of the levy of the special tax obligations by assessor’s parcel number and who will be responsible for estimating future levies of the special tax.

12. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property in the District and this lien shall continue in force and effect until the collection of the special tax by the City ceases.

13. In accordance with the Act, the annual appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, of the District is hereby preliminarily established at an amount equal to the $20,000,000 annually, as adjusted by law, commencing Fiscal Year 2023-24 and such appropriations limit shall be submitted to the voters of the District as hereafter provided. Future Annexations to the District will each approve annual appropriations limit increases applicable to such

Annexation that will be added to the appropriations limit established at formation and all previously approved annexations to sum to the total appropriations limit for the CFD. The proposition establishing such annual appropriations limit shall become effective if approved by the qualified electors voting thereon and shall be adjusted in accordance with the applicable provisions of the Act and the California Constitution.

14. Pursuant to the provisions of the Act, the proposition of the levy of the special tax and the proposition of the establishment of the appropriations limit specified above shall be submitted to the qualified electors of the District at an election, the time, place and conditions of which election shall be as specified by a separate resolution of this City Council.

15. This Resolution shall take effect upon its adoption.

ADOPTED AND APPROVED by the City Council of the City of Hesperia at a public meeting of said City Council held on the 1
st day of August, 2023.

Ayes:

Noes:

Abstain:

Absent:

____________________________________
Brigit Bennington, Mayor

Attest:

____________________________________
Erin Baum, Assistant City Clerk

EXHIBIT A

CITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2023-1
(SILVERWOOD MAINTENANCE AND SERVICES)

DESCRIPTION OF SERVICES TO BE FINANCED BY THE DISTRICT

Services:

The services to be funded, in whole or in part, by the community facilities district (the “ District”) consist of all services authorized under Section 53313 of the Government Code, including, but not be limited to, police protection services, maintenance of streets, roads, storm drains and trail maintenance (the "Services"). The Services include all direct and incidental costs related to providing for the maintenance of public infrastructure within the area of the District and areas adjacent to or in the vicinity of such areas. The District may fund any of the following related to the Services: furnishing, operating and maintaining equipment, apparatus or facilities related to providing the services and/ or equipment, apparatus, facilities or fixtures in areas to be maintained, paying the salaries and benefits of personnel necessary or convenien t to provide the Services, payment of insurance costs and other related expenses and the provision of reserves for repairs and replacements and for the future provision of Services. It is expected that the Services will be provided by the City of Hesperia (the “City”), either with its own employees or by contract with third parties, or any combination thereof.

Administrative Expenses:

The administrative expenses to be funded by the District include the direct and indirect expenses incurred by the City in carrying out its duties with respect to the District (including, but not limited to, the levy and collection of the special taxes) including the fees and expenses of attorneys, any fees of the County of San Bernardino related to the District or the collection of special taxes, an allocable share of the salaries of the City staff directly related thereto and a proportionate amount of the City’s general administrative overhead related thereto, any amounts paid by the City from its general fund with respect to the District or the services authorized to be funded by the District, and expenses incurred by the City in undertaking action related to properties for which the payment of special taxes is delinquent, and all other costs and expenses of the City in any way related to the District.

Other:

The incidental expenses that may be funded by the District include, in addition to the administrative expenses identified above, the payment or reimbursement to the City of all costs associated with the establishment and administration of the District.

EXHIBIT B

CITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. CFD 2023-1
(SILVERWOOD MAINTENANCE AND SERVICES)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX

The following pages contain the Rate and Method of Apportionment of Special Tax.

City of Hesperia
Comm
unity Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 1

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
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

City
of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 2 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.

City
of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 3 “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.

City
of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 4 “GIS” or “Geographic Information System” means a system designed to capture, store, manip
ulate, 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

City
of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 5 association. As used in this definition, a Property Owner’s Association includes any home-owner’s assoc
iation, 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

City
of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 6 No. 2023-1 at t he 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

City
of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 7 each Parcel contains; (iv) the Property Type (e.g., Non-Age Qualified Apartment Property, Hotel Prop
erty, 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.

TABL
E 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

City
of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 8 Property Type
Maximum
Special Tax Rate Per
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.

1. 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.

2. 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:

1. 800 BSF / 2,000 BSF = 0.40 or 40%

2. $600 Maximum Special Tax per Unit x 40% = $240 Maximum Special Tax for such ADU

3. 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.

City
of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 9 Second: Levy the Special Tax on each Parcel of Developed Property, Proportionately, up to the applicab
le 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

City
of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 10 addition, the interpretation and application of any section of this document shall be at the City’s discr
etion.

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.

RESOLUTION NO. 2023-53

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA, STATE

OF CALIFORNIA, CALLING A SPECIAL ELECTION FOR A COMMUNITY

FACILITIES DISTRICT

CITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2023-1
(SILVERWOOD MAINTENANCE AND SERVICES)
WHEREAS, this City Council (the “City Council”) of the City of Hesperia (the “City”) adopted a resolution entitled “A Resolution of the City Council of the City of Hesperia, State of California, Establishing the Formation of a Community Facilities District and Future Annexation Area” (the “Resolution of Formation”), ordering the formation of the City of Hesperia, Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) (the “District”), defining the public services (the “Services”) to be provided by the District and Future Annexation Area, authorizing the levy of a special tax on property within the District and preliminarily establishing an appropriations limit for the District, all pursuant to the Mello -Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code; hereafter referred to as the “Act”); and
WHEREAS, pursuant to the provisions of the Resolution of Formation, the propositions of the levy of the special tax and the establishment of the appropriations limit shall be submitted to the qualified electors of the District as required by the provisions of the Act.

NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Hesperia as follows:

1. The foregoing recitals are true and correct.

2. Pursuant to the Act, the issues of the levy of the special tax and the establishment of the appropriations limit shall be submitted to the qualified electors (as defined below) of the District at a special election called therefore as provided below.

3. This City Council hereby finds that fewer than 12 persons have been registered to vote within the territory of the District for each of the ninety (90) days preceding the close of the public hearing heretofore conducted and concluded by this City Council for the purposes of these proceedings. Accordingly, and pursuant to Section 53326 of the Act, this City Council finds that, for these proceedings, the qualified electors are the landowners within the District and that the vote shall be by such landowners or the ir authorized representatives, each having one vote for each acre or portion thereof such landowner owns in the District as of the close of the public hearing.

4. This City Council hereby calls a special election to consider the issues described in Section 2, above, which special election shall be held on August 1, 2023, and the results thereof canvassed at the meeting of this City Council on August 1, 2023. The City Clerk is hereby designated as the official to conduct the special election and to receive all ballots until the close of business on the special election date . It is hereby acknowledged that the City Clerk has on file the Resolution of Formation, a map of the boundaries of the District, and a sufficient description to allow the City Clerk to deter mine the electors of the District .

The special election shall be conducted by messenger or mail-delivered ballot in accordance with the Act.

Resolution No. 2023-53

5. As authorized by Section 53353.5 of the Act, the issues described in Section 2 above shall be combined into a single ballot measure, the form of which is attached hereto as Exhibit A is hereby approved.

The City Clerk is hereby authorized and directed to cause a ballot, in substantially the form of Exhibit A, to be delivered to each of the qualified electors of th e District. Each ballot shall indicate the number of votes to be voted by the respective landowner to which the ballot pertains. Each ballot shall be accompanied by all supplies and written instructions necessary for the use and return of the ballot. The envelope to be used to return the ballot shall be enclosed with the ballot, have the return postage prepaid, and contain the following: (a) the name and address of the landowner, (b) a declaration, under penalty of perjury, stating that the voter is the owner of record or authorized representative of the landowner entitled to vote and is the person whose name appears on the envelope, (c) the printed name, signature and address of the voter, (d) the date of signing and place of execution of the declaration pursuant to clause (b) above, and (e) a notice that the envelope contains an official ballot.

6. This City Council hereby further finds that the provisions of Section 53326 of the Act requiring a minimum of 90 days following the adoption of the Resolution of Formation to elapse before the special election are for the protection of the qualified electors of the District . There is on file with the City Clerk a written Petition with Waivers executed by all of the qualified electors of the District allowing for a shortening of the time for the special election to expedite the process of formation of the District and waiving any requirement for notice, analysis, and arguments in connection with the special election .

Accordingly, this City Council finds and determines that the qualified electors have been fully apprised of and have agreed to the shortened time for the special election and waiver of analysis and arguments, and have thereby been fully protected in these proceedings. This City Council also finds and determines that the City Clerk has concurred in the shortened time for the special election. Analysis and arguments with respect to the ballot measures are hereby waived, as provided in Section 53327 of the Act.

7. If two -thirds (2/3) of the votes cast upon the q uestion of levying such special tax and establishing the appropriations limit are cast in favor of the proposition after the canvass of the returns of such special election, the City Council may levy such special tax within the District under the Act in accordance with the approved rate and method of apportionment of special tax. Such special tax may be levied only at the rate and may be apportioned only in the manner specified in the Resolution of Formation, subject to the Act, except that the special tax may be levied at a rate lower than that specified herein and the maximum annual tax rate may be lowered.

8. Under Section 50075.1 of the Government Code, the following accountability provisions shall apply to the special taxes: (a) the operation and maintenance Services and the incidental costs thereof t, all as defined in the Resolution of Formation, shall constitute the specific purpose; (b) the proceeds shall be applied only to the specific purposes identified in (a) above; (c) there shall be created special account(s) or funds(s) into which the proceeds shall be deposited; and (d) there shall be caused to be prepared an annual report as required by Section 50075.3 of the Government Code.

9. This Resolution shall take effect upon its adoption.

Resolution No. 2023-53
ADOPTED AND APPROVED by the City Council of the City of Hesperia at a public meeting of said City Council held on the 1st day of August, 2023, by the following vote:

Ayes:

Noes:

Abstain:

Absent:
____________________________________
Brigit Bennington, Mayor
Attest:
____________________________________
Erin Baum, Assistant City Clerk

EXHIBIT A

CITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2023-1
(SIVLERWOOD MAINTENANCE AND SERVICES)

SPECIAL TAX ELECTION
(August 1, 2023)

This ballot is for a special, landowner election. You must return this ballot in the enclosed envelope to the office of the City Clerk of the City of Hesperia no later than the hour of 2:00 p.m. on Tuesday, August 1, 2023, either by mail or in person. A postmark is not sufficient. The City Clerk’s office is located at 9700 Seventh Avenue, Hesperia, California, 92345.

To vote, mark a cross (X) on the voting line after the word “YES” or after the word “NO”. All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void. If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of Hesperia and obtain another.

The estimated maximum amount of money raised annually by this measure is expected to be $9,343,850, in 2023/24 special tax rates, upon full build out of the CFD, based on the rate and duration of the special tax and subject to the tax escalation factor, as set forth in the rate and method of apportionment of special taxes for the CFD.

BALLOT MEASURE : Shall the measure authorizing the City of Hesperia Community Facilities District No. 2023 -1 (Silverwood Maintenance and Services) (the “District”) to annually levy a special tax perpetually solely on lands within the District of up to $510 per unit for Non -Age Qualified Apartment Property, $540 per unit for Non-Age Qualified Single -Family Attached Property, $600 for Non - Age Qualified Single Family Detached Property, $540 for Age Qualified Single -Family Attached Property, $570 for Age Qualified Single-Family Detached Property, $0.13 per building square foot for Hotel Property, $0.21 per building square foot for Retail/Restaurant Property, $0.34 per building square foot for Office Property, other rates for other land uses, as adjusted annually, to pay for Services and authorizing an appropriations limit of $20,000,000, as adjusted by law and future annexations, and all as provided in the Resolution of Formation adopted by the City Council on August 1 , 2023, commencing Fiscal Year 2023-24, be adopted?
YES:

NO:

By execution in the space provided below, you also confirm your written waiver of the time limit pertaining to the conduct of the election and any requirement for analysis and arguments or form of ballot with respect to the ballot measure.

Number of Votes: 784

Property Owner: SILVERWOOD DEVELOPMENT PHASE I, LLC

By: __________________________________________

Property Owned by Property Owner: San Bernardino County Assessor’s Parcel Numbers: 0397-012-36-0000, 0397-052-17-0000, 0397-161-63-0000

RESOLUTION NO. 2023-54

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA, STATE

OF CALIFORNIA, DECLARING RESULTS OF A SPECIAL LANDOWNER

ELECTION AND DIRECTING THE RECORDING OF A SPECIAL TAX LIEN

CITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2023-1
(SILVERWOOD MAINTENANCE AND SERVICES)

WHEREAS, this City Council (the “ City Council”) of the City of Hesperia (the “City”) adopted a resolution entitled “A Resolution of the City Council of the City of Hesperia, State of California, Establishing the Formation of a Community Facilities District” (the “Resolution of Formation”), ordering the formation of the City of Hesperia, Community Facili ties District No. 2023-1 (Silverwood Maintenance and Services ) (the “District”), and the Future Annexation Area designated as the “City of Hesperia Community Facilities District No. 2023-1 ( Silverwood Maintenance and Services) (Future Annexation Area)” (the “Future Annexation Area”) defining the public services (the “Services”) to be provided by the District and Future Annexation Area, authorizing the levy of a special tax on property within the Distri ct and preliminarily establishing an appropriations limit for the District, all pursuant to the Mello -Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code; hereafter referred to as the “Act”); and

WHEREAS, under the provisions of the Resolution of Formation, and pursuant to the resolution entitled “A Resolution of the City Council of the City of Hesperia, State of California, Calling a Special Election for a Community Facilities District” (the “Resolution Calling the Special Election”) heretofore adopted by this City Council, a measure containing propositions relating to the levy of the special tax and the establishment of the appropriations limit was submitted to the qualified electors of the District as required by the provisions of the Act; and

WHEREAS, pursuant to the terms of the Resolution Calling the Special Election, which are by this reference incorporated herein, the special election has been held and the City Clerk has on file a Canvass and Statement of Results of Special Election, (the “Canvass”) a copy of which is attached hereto as Exhibit A; and

WHEREAS, this City Council has been informed of the Canvass, finds it appropriate and wishes to complete its proceedings for the District.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hesperia as follows:

1. The foregoing recitals are true and correct.

2. The issues presented at the special election were the levy of a special tax within the District and the approval of an annual appropriations limit of not to exceed $20,000,000 as adjusted by law, commencing Fiscal Year 2023-24, annually all pursuant to the Resolution of Formation.

3. The City Council hereby approves the Canvass and finds that it shall be a permanent part of the record of its proceedings for the District. Pursuant to the Canvass, the issues presented at the special election were approved by the qualified electors of the District by more than two-thirds (2/3) of the votes cast at the special election.

Resolution No. 2023-54

4. Pursuant to the voter approval, the District is hereby declared to be fully formed with the authority to levy the special taxes and to have the established appropriations limit, all as heretofore provided in these proceedings and in the Act . It is hereby found that all prior proceedings and actions taken by t his City Council with respect to the District were valid and in conformity with the Act.

5. The City Clerk is hereby directed to complete, execute and cause to be recorded in the office of the County Recorder of the County of San Bernardino a notice of special tax lien in the form required by the Act, such recording to occur no later than fifteen (15) days following adoption of this Resolution by the City Council.

6. This Resolution shall take effect upon its adoption.

ADOPTED AND APPROVED the City Council of the City of Hesperia at a public meeting of said City Council held on the 1st day of August, 2023, by the following vote:

Ayes:

Noes:

Abstain:

Absent:

____________________________________
Brigit Bennington, Mayor

Attest:

____________________________________
Erin Baum, Assistant City Clerk

EXHIBIT A

CITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2023-1
(SILVERWOOD MAINTENANCE AND SERVICES)

CANVASS AND STATEMENT OF RESULT OF SPECIAL ELECTION

I hereby certify that on August 1 , 202 3, I canvassed the returns of the special election held on August 1, 2023, in the City of Hesperia Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) of the City of Hesperia and the total number of ballots cast in such special election and the total number of votes cast for and against the measure are as follows and the totals as shown for and against the measure are full, true and correct:

Qualified
Landowner
Votes
Votes
Cast
Votes
YES
Votes
NO
City of
Hesperia

Community Facilities District No. 2023-1
(Silverwood Maintenance and Services)
Special Tax Election, August 1, 2023 784 _____ _____ _____

BALLOT MEASURE : Shall the measure authorizing the City of Hesperia Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) (the “District”) to annually levy a special tax perpetually solely on lands within the District of up to $510 per unit for Non -Age Qualified Apartment Property, $540 per unit for Non -Age Qualified Single -Family Attached Property, $600 for Non - Age Qualified Single Family Detached Property, $540 for Age Qualified Single - Family Attached Property, $570 for Age Qualified Single -Family Detac hed Property, $0.13 per building square foot for Hotel Property, $0.21 per building square foot for Retail/Restaurant Property, $0.34 per building square foot for Office Property, other rates for other land uses, as adjusted annually, to pay for Services and authorizing an appropriations limit of $20,000,000, as adjusted by law and future annexations, and all as provided in the Resolution of Formation adopted by the City Council on August 1, 2023, commencing Fiscal Year 2023-24, be adopted?

Yes: __________

No: __________

IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND on August 1, 2023.

By:

City Clerk
City of Hesperia

ORDINANCE 2023-11

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

HESPERIA, STATE OF CALIFORNIA, AUTHORIZING THE LEVY

OF SPECIAL TAXES IN A COMMUNITY FACILITIES DISTRICT

CITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2023-1
(SILVERWOOD MAINTENANCE & SERVICES)

WHEREAS; this City Council (the “City Council”) of the City of Hesperia (the “City”) on June 20, 2023, adopted Resolution No. 2023-22 entitled “A Resolution of the City Council of the City of Hesperia, State of California, Declaring its Intention to Establish a Community Facilities District and Future Annexation Area and to Authorize the Levy of Special Taxes” (the “Resolution of Intention”) and has conducted proceedings (the “Proceedings”) to establish the City of Hesperia Community Facilities District No. 2023-1 (Silverwood Maintenance & Services ) (the “District”) pursuant to the Mello -Roos Community Facilities Act of 1982 (Sections 533 11 and following, California Government Code; hereafter referred to as the “Act”) to finance the costs of police protection services, maintenance of streets, roads, storm drains and trail maintenance (the “Services”) as provided in the Act; and

WHEREAS; the Resolution of Intention called for a public hearing to be held on August 1, 2023, or as soon thereafter as the matter may be heard; and

WHEREAS; on August 1, 2023, and as part of the Proceedings, this City Council held a public hearing under the Act relative to the determination to proceed with the formation of the District and Future Annexation Area and the rate and method of apportionment of the special tax (the “Special Tax”) to be levied within the District to finance the Services and, at such hearing, all persons desiring to be heard on all matters pertaining to the formation of the District and Future Annexation Area and the levy of the Special Tax were heard, substantial evidence was presented and considered by this City Council, and a full and fair public hearing was held; and

WHEREAS; upon the conclusion of the hearing, this City Council adopted a resolution entitled “A Resolution of the City Council of the City of Hesperia, State of California, Establishing the Formation of a Community Facilities District and Future Annexation Area ” (the “Resolution of Formation”), whereby the City Council (i) established the District and Future Annexation Area, (ii) authorized the levy of the Special Tax within the District, and (iii) preliminarily established an appropriations limit for the District, all pursuant to the Act; and

WHEREAS; on August 1, 2023, a special election was held among the landowner voters within the District at which the landowner voters approved the proposition relating to the levy of Special Taxes within the District and the establishment of an appropriations limit for the District by the two-thirds vote required by the Act, which approval has been confirmed by resolution of this City Council; and

WHEREAS; the City Council ordered the recordation with the County Recorder of the County of San Bernardino of a Notice of Special Tax Lien (the “Notice”).

THE CITY COUNCIL OF THE CITY OF HESPERIA DOES ORDAIN AS FOLLOWS:

SECTION 1: By the passage of this Ordinance, the City Council hereby authorizes and levies the Special Tax within the District pursuant to the Act, at the rate and in accordance with the rate and method of apportionment of Special Tax set forth in the Resolution of Formation, which rate and method is by this reference incorporated herein. The Special Tax is hereby levied commencing in fiscal year 2023-2024 and in each fiscal year thereafter to pay for the Services for the District and all costs of administering the District, as contemplated by the Resolution of Formation and the Proceedings. By this Ordinance, the City Council also authorizes and levies the Special Tax upon any parcels annexed to the District in the Future Annexation Area following such annexation for fiscal year 2023-2024 and in each fiscal year thereafter.

SECTION 2: The Assistant City Manager or designee or employee or consultant of the City is hereby authorized and directed each fiscal year to determine the specific Special Tax to be levied for the next ensuing fiscal year for each parcel of real property within the District, in the manner and as provided in the Resolution of Formation.

SECTION 3: Exemptions from the levy of the Special Tax shall be as provided in the Resolution of Formation and the applicable provisions of the Act. In no event shall the Special Tax be levied on any parcel within the District in excess of the maximum Special Tax specified in the Resolution of Formation.

SECTION 4: All of the collections of the Special Tax shall be used as provided in the Act and in the Resolution of Formation, including, but not limited to, the payment of the costs of the Services, the payment of the costs of the City in administering the District, and the costs of collecting and administering the Special Tax.

SECTION 5: The Special Tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall have the same lien priority and be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem t axes; provided, however, that the City Council may provide for other appropriate methods of collection by resolution(s) of the City Council. The Assistant City Manager or designee or employee or consultant of the City is hereby authorized and directed to provide all necessary information to the auditor/tax collector of the County of San Bernardino in order to effect proper billing and collection of the Special Tax, so that the Special Tax shall be included on the secured property tax roll of the County of San Bernardino for fiscal year 2023-24 and for each fiscal year thereafter until no longer required to pay for the Services or until otherwise terminated by the City.

SECTION 6: If for any reason any portion of this ordinance is found to be invalid, or if the special tax is found inapplicable to any particular parcel within the District by a court of competent jurisdiction, the balance of this ordinance and the application of the special tax to the remaining parcels within the District shall not be affected.

SECTION 7: The Mayor shall sign this Ordinance and the City Clerk shall cause the same to be published immediately after its passage at least once in a newspaper of general circulation for the City.

SECTION 8: This Ordinance shall become effective thirty (30) days following adoption.

City of Hesperia, a municipal corporation

MAYOR: __________________________________

BRIGIT BENNINGTON, MAYOR

ATTEST: __________________________________

ERIN BAUM, ASSISTANT CITY CLERK

STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO SS:

CITY OF HESPERIA

I, Melinda Sayre, City Clerk of the City of Hesperia, do hereby certify that the foregoing Ordinance had its first reading and was introduced during the public meeting of the City Council on the ___ day of ____, 20__, and had its second reading and was adopted and passed during the public meeting of the City Council on the ___ day of ____, 20__, by the following vote:

Ayes:

Noes:

Abstain:

Absent:

Attest:

____________________________________
Erin Baum, Assistant City Clerk

Prepared by:

Report for:

Community Facilities District No. 2023-1
(Silverwood Maintenance and Services)
Special Tax Report
July 2023
Prepared by NBS for and on behalf of the City of Hesperia Attachment 5

TABLE OF CONTENTS

INTR
ODUCTION ..................................................................................................................... 1 DESCRIPTION OF SERVICES ..................................................................................................... 2 Services: ............................................................................................................................... 2 Administrative Expenses: .................................................................................................... 2 Other: .................................................................................................................................. 2 COST ESTIMATE ..................................................................................................................... 3 Initial Maximum Amount Proposed to be Expended .......................................................... 3 Anticipated Fiscal Year 2023/24 Maximum Special Tax Revenue ...................................... 3 Annual Maximum Special Tax Escalation ............................................................................ 5 APPENDIX A: PROPOSED BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT AND FUTURE ANNE
XATION AREA ............................................................................................................... 6 APPENDIX B: RATE AND METHOD OF APPORTIONMENT......................................................... 7

City of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Special Tax Report 1

INTRODUCTION
The City Council (the “City Council”) of the City of Hesperia (the “City”) did, pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code; hereafter referred to as the “Act”), on June 20th, 2023, adopted Resolution 2023-22 entitled the Resolution of the City Council of the City of Hesperia, State of California, Declaring Its Intention to Establish a Community Facilities District and to Authorize the Levy of Special Taxes (the “Resolution of Intention”). In the Resolution of Intention, the City Council directed the study and filing of a public hearing report (the “Report”) required by Section 53321.5 of the Act for the proposed City of Hesperia Community Facilities District No. 2023-1 (Silverwood Maintenance & Services) (the “District”).

Section 53321.5 of the Act provides that the Report contain the following:

1. A b
rief description of the public facilities or services to be provided by the District; and

2. An estimate of the fair and reasonable cost of providing the public facilities or services, including the incidental expenses in connection therewith, any City administration costs, and all other related costs.

For particulars, reference is made to the Resolution of Intention for the District, as previously adopted on June 20, 2023 by the City Council.

NOW, THEREFORE, the Director of Public Works of the City, the appointed responsible officer directed to prepare the Report or cause the Report to be prepared pursuant to the provisions of the Act, does hereby submit this Report containing the following information:

 DESCRIPTION OF SERVICES. A description of the services that the City Council has determined to be eligible to be funded by the District.
 COST ESTIMATE. The initial maximum cost estimate for the District services and the anticipated initial maximum special tax revenue.
 PROPOSED BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT: The proposed boundaries of the District are those properties and parcels in which special taxes may be levied to pay for the costs and expenses of the Services. The proposed boundaries of the District are described on the map of the District.
 RATE AND METHOD OF APPORTIONMENT. The Rate and Method of Apportionment of Special Tax which was included in the Resolution of Intention and approved by this City Council on June 20, 2023.

C
ity of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Special Tax Report 2

DESCRIPTION OF SERVICES
The public services and incidental costs authorized to be funded by the special taxes levied in the District consist of the following:

Services:

The services to be funded, in whole or in part, by the community facilities district (the “District”) consist of all serv
ices authorized under Section 53313 of the Government Code, including, but not be limited to, police protection services, maintenance of streets, roads, storm drains and trail maintenance (the "Services"). The Services include all direct and incidental costs related to providing for the maintenance of public infrastructure within the area of the District and areas adjacent to or in the vicinity of such areas. The District may fund any of the following related to the Services: furnishing, operating and maintaining equipment, apparatus or facilities related to providing the services and/ or equipment, apparatus, facilities or fixtures in areas to be maintained, paying the salaries and benefits of personnel necessary or convenient to provide the Services, payment of insurance costs and other related expenses and the provision of reserves for repairs and replacements and for the future provision of Services. It is expected that the Services will be provided by the City of Hesperia (the “City”), either with its own employees or by contract with third parties, or any combination thereof.

Administrative Expenses:

The administrative expenses to be funded by the District include the direct and indirect expenses incurred by th
e City in carrying out its duties with respect to the District (including, but not limited to, the levy and collection of the special taxes) including the fees and expenses of attorneys, any fees of the County of San Bernardino related to the District or the collection of special taxes, an allocable share of the salaries of the City staff directly related thereto and a proportionate amount of the City’s general administrative overhead related thereto, any amounts paid by the City from its general fund with respect to the District or the services authorized to be funded by the District, and expenses incurred by the City in undertaking action related to properties for which the payment of special taxes is delinquent, and all other costs and expenses of the City in any way related to the District.

Other:

The incidental expenses that may be funded by the District include, in addition to the administrative expen
ses identified above, the payment or reimbursement to the City of all costs associated with the establishment and administration of the District.

City of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Special Tax Report 3

COST ESTIMATE
Initial Maximum Amount Proposed to be Expended
The annual budget presented below represents the initial maximum costs for providing the District services as we
ll as the estimated costs for Fiscal Year 2023/24.

PRIOR TO THE TRANSITION YEAR
District Costs
2023/24 Maximum
Budget Amount
2023/24 Estimated
Budget Amount
District Service & Administration Costs $6,227,300.00 $6,227,300.00 Total: $6,227,300.00 $6,227,300.00

COMMENCING IN THE TRANSITION YEAR
District Costs
2023/24 Maximum
Budget Amount
2023/24 Estimated
Budget Amount
District Service & Administration Costs $9,337,850.00 $9,337,850.00 Total: $9,337,850.00 $9,337,850.00

Anticipated Fiscal Year 2023/24 Maximum Special Tax Revenue The initial maximum annual special tax rates are set forth in the Rate and Method of Apportionment for the
District. Based upon expected development, the initial maximum annual special tax revenue is as follows:

City of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Special Tax Report 4

PRIOR TO THE TRANSITION YEAR

MAXIMUM SPECIAL TAX RATES
FISCAL YEAR 2023/24*
Land Use Category
Maximum
Special Tax
Rate
Anticipated
Number of
Units
Estimate
Special Tax
Revenue
Non-Age Qualified Apartment Property $340.00 1,328 $451,520.00 Non-Age Qualified Single-Family Attached Property 360.00 1,709 615,240.00 Non-Age Qualified Single-Family Detached Property 400.00 8,097 3,238,800.00 Age Qualified Single-Family Attached Property 360.00 454 163,440.00 Age Qualified Single-Family Detached Property 380.00 4,075 1,548,500.00 Hotel Property 0.09 270,000 24,300.00
Retail/Restaurant Property 0.14 750,000 105,000.00
Office Property 0.23 350,000 80,500.00
$6,227,300.00
*On each July 1, commencing on July 1, 2024, the Maximum Special Tax Rate shall be increased by the Tax Escalation Factor.

COMMENCING IN THE TRANSITION YEAR

MAXIMUM SPECIAL TAX RATES
FISCAL YEAR 2023/24*
Land Use Category
Maximum
Special Tax
Rate
Anticipated
Number of
Units
Estimate
Special Tax
Revenue
Non-Age Qualified Apartment Property $510.00 1,328 $677,280.00 Non-Age Qualified Single-Family Attached Property 540.00 1,709 922,860.00 Non-Age Qualified Single-Family Detached Property 600.00 8,097 4,858,200.00 Age Qualified Single-Family Attached Property 540.00 454 245,160.00 Age Qualified Single-Family Detached Property 570.00 4,075 2,322,750.00 Hotel Property 0.13 270,000 35,100.00
Retail/Restaurant Property 0.21 750,000 157,500.00
Office Property 0.34 350,000 119,000.00
$9,337,850.00
*On each July 1, commencing on July 1, 2024, the Maximum Special Tax Rate shall be increased by the Tax Escalation Factor.

City of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Special Tax Report 5 Annual Maximum Special Tax Escalation
On July 1 of each Fiscal Year, commencing on July 1, 2024, the maximum annual special tax rate shall be incre
ased by 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).

City of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Special Tax Report 6 APPENDIX A: PROPOSED BOUNDARIES OF THE

COMMUNITY FACILITIES DISTRICT AND FUTURE

ANNEXATION AREA
The boundary map and future annexation area for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the County Assessor, at the time this Report was prepared, and are incorporated by reference herein and made part of this Report.

City of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Special Tax Report 7 APPENDIX B: RATE AND METHOD OF APPORTIONMENT
The following pages provide a copy of the District’s Rate and Method of Apportionment approved by the City Council on June 20, 2023.

C
ity of Hesperia
Commu
nity Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 1

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
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 o f
P
art 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

City
of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 2 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.

City
of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 3 “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.

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Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 4 “GIS” or “Geographic Information System” means a system designed to capture, store, manipu
late, 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

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Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 5 association. As used in this definition, a Property Owner’s Association includes any home-owner’s associa
tion, 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

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Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 6 No. 2023-1 at th e 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

City
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Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 7 each Parcel contains; (iv) the Property Type (e.g., Non-Age Qualified Apartment Property, Hotel Prop
erty, 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.

TABL
E 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

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Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 8 Property Type
Maximum
Special Tax Rate Per
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.

1. M ixed-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.

2. 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:

1. 800 BSF / 2,000 BSF = 0.40 or 40%

2. $600 Maximum Special Tax per Unit x 40% = $240 Maximum Special Tax for such ADU

3. 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.

City
of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 9 Second: Levy the Special Tax on each Parcel of Developed Property, Proportionately, up to the applicab
le 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

C
ity o
f Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 10 addition, the interpretation and application of any section of this document shall be at the City’s discre
tion.

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.