RESOLUTION NO. 2023-55
A RE
SOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA, STATE
OF CALIFORNIA, ESTABLISHING THE FORMATION OF A COMMUNITY
FACILITIES DISTRICT AND FUTURE ANNEXATION AREA
CI
TY 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 Manager 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 W
HEREAS, 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.
N
OW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hesperia as follows:
1. T
he foregoing recitals are true and correct.
2. Th
e 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. A
ll 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. T
he 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. Th
e District Report is hereby approved.
6. T
he 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.
P
arcels 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. T
he 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. E
xcept 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. Th
e 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. T
erritory 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. Th
e 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. Up
on 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. I
n 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. P
ursuant 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. Th
is Resolution shall take effect upon its adoption.
A
DOPTED 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.
Ay
es:
Noes:
Abstain:
Absent:
____
________________________________
Brigit Bennington, Mayor
A
ttest:
____________________________________
Erin Baum, Assistant City Clerk
EXHIBIT A
C
ITY 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
Community Facilities District No. 2023-1 (Silverwood Ma intenance 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 Ser vices) (“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 Proper ty 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 loc ated on such Assessor’s Parcel is considered a separate Unit from the primary Unit on such Asses sor’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 sh ows no acreage, the Acreage for any Assessor’s Parcel may be determined by the CFD Admi nistrator based upon, in the CFD Administrator’s discretion, the applicable condomin ium 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 inc luding, but not limited to, the following: the costs of computing the Annual Special Tax Requireme nt and the annual Special Tax and of preparing the annual Special Tax collection schedul es; 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 comply ing with the disclosure requirements of the California Government Code (including the Act), inc luding public inquiries regarding the Special Tax; the costs of the City or designee related to l evying or an appeal of the Special Tax; and the costs of commencing and pursuing to completion acti on arising from any delinquent Special Tax in CFD No. 2023-1 or costs of the County tax sale p rocess. 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 M aintenance 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 w alls 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 Uni t(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 Dat a 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 connecti on 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 Parce l Map with an assigned Assessor’s Parcel Number.
“Assessor’s Parcel Map” means an official map of the County Assessor desig nating 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 M aintenance and Services) Page 3 “Authorized Services” means the services provided by the City and authori zed 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 wit hin 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 (inc luding 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 53 317 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 b y the City prior to June 30 of the preceding Fiscal Year.
“Exempt Property” means all Assessor’s Parcels located within the bo undary 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 30 th .
City of Hesperia
Community Facilities District No. 2023-1 (Silverwood M aintenance and Services) Page 4 “GIS” or “Geographic Information System” means a system designed to capture, store, manipulate, analyze, manage, and present spatial or geographic data. “Hotel Property” means all Assessor’s Parcels within the boundaries of CFD No. 2023-1 that have an establishment providing short-term lodging accommodations and other services for travelers and tourists.
"Maximum Special Tax” means for each Assessor’s Parcel of Taxable Proper ty and each Fiscal Year, the maximum Special Tax, determined in accord ance 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 mor e 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 w alls 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 Uni t(s)), and may be purchased by individual homebuyers who are not subject to legal discriminat ion on the basis of age (which shall still be the case even if the Units are purchased and subseq uently offered for rent by the owner of the Unit), including such residential structures that m eet 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 subj ect 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 M aintenance and Services) Page 5 association. As used in this definition, a Property Owner’s Association includes any home-owner’s association, condominium owner’s association, maste r 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 Ass ociation 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 a ctual 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 offer ed 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 whi ch general merchandise, hard goods, and other items are sold directly to consumers, or in which s ervices 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 th at are Non-Age Qualified Apartment Property, Non-Age Qualified Sin gle-Family Attached Property, Non-Age Qualified Single-Family Detached Property, Age Qual ified 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 B ernardino-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., M arch 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 M aintenance and Services) Page 6 No. 2023-1 at the time of its formation is within Tax Zone No. 1. Additional Tax Zones may be created when property is annexed to CFD No. 2023-1, and a separate Maximum Special Tax shall be identified for property within each new Tax Zone at the time of such annexation. The Assessor’s Parcels included within a new Tax Zone when such Pa rcels 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 Administrato r 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 f ully 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 wi thin 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 fami ly 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 Assesso r’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 b oundaries of CFD No. 2023-1 that (a) have been granted a welfare exe mption by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code ind icated 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 deter mine 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, consoli dated, 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) th e number of Units or Building Square Footage
City of Hesperia
Community Facilities District No. 2023-1 (Silverwood M aintenance and Services) Page 7 each Parcel contains; (iv) the Property Type (e.g., Non-Age Qualified Apartment Property, Hotel Property, ADU, etc.); and (v) the Annual Special Tax Requirement for the Fiscal Year.
C. MAXIMUM ANNUAL SPECIAL TAX RATES
The Maximum Special Tax for each Assessor’s Parcel of Taxable Property within Tax Zone No. 1 shall be assigned according to the table below.
TABLE 1
MAXIMUM SPECIAL TAX RATES – PRIOR TO THE TRANSITION YEAR TAX ZONE NO. 1
FISCAL YEAR 2023/24*
Property Type
Maximum
Special Tax Rate Per
Non-Age Qualified Apartment Property $340.00 Unit
Non-Age Qualified Single-Family Attached Property 3 60.00 Unit Non-Age Qualified Single-Family Detached Property 4 00.00 Unit Age Qualified Single-Family Attached Property 360.0 0 Unit Age Qualified Single-Family Detached Property 380.0 0 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 Maxi mum Special Tax Rates shown in Table 1 shall be increased by the Tax Escalation Factor.
TABLE 2
MAXIMUM SPECIAL TAX RATES – COMMENCING IN THE TRANSITION YEAR TAX ZONE NO. 1
FISCAL YEAR 2023/24*
Property Type
Maximum
Special Tax Rate Per
Non-Age Qualified Apartment Property $510.00 Unit
Non-Age Qualified Single-Family Attached Property 5 40.00 Unit Non-Age Qualified Single-Family Detached Property 6 00.00 Unit Age Qualified Single-Family Attached Property 540.0 0 Unit Age Qualified Single-Family Detached Property 570.0 0 Unit
City of Hesperia
Community Facilities District No. 2023-1 (Silverwood M aintenance 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 Maxim um 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 Develope d 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 U nit 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 whic h the ADU is an accessory, based on Building Square Footage. For example, if a primary Unit of N on-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 Maxi mum 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 eac h 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 M aintenance and Services) Page 9 Second: Levy the Special Tax on each Parcel of Deve loped Property, Proportionately, up to the applicable Maximum Special Tax.
Notwithstanding the foregoing, under no circumstances will the Special Tax on any Assessor’s Parcel used for private residential purposes be increased by more than 10% as a consequence of delinquency or default by the owner of any other Assessor’s Parcel within CFD No. 2023-1.
E. EXEMPTIONS
Notwithstanding any other provision of this Rate and Method of Apportionment, no Special Tax shall be levied on (i) Property Owner’s Association Prope rty, (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 otherwis e 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 Pa rcel 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 i s 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 addi tion, 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 appella nt claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with th e appellant if the CFD Administrator deems necessary, and advise the appellant of its determination.
If the property owner disagrees with the CFD Admini strator’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 ad justment shall be made to credit future Special Taxes.
This procedure shall be exclusive and its exhaustio n by any property owner shall be a condition precedent to filing any legal action by such owner.
G. INTERPRETATION OF RATE AND METHOD OF APPORTIONME NT
The City may, by resolution or ordinance, interpret , clarify and/or revise this Rate and Method of Apportionment to correct any inconsistency, vaguene ss, or ambiguity as it relates to the Special Taxes, method of apportionment, classification of A ssessor’s Parcels, or any definition used herein, as long as such correction does not materially affe ct the levy and collection of Special Taxes. In
City of Hesperia
Community Facilities District No. 2023-1 (Silverwood M aintenance and Services) Page 10 addition, the interpretation and application of any section of this document shall be at the City’s discretion.
H. MANNER AND DURATION OF SPECIAL TAX
The Special Tax shall be collected in the same mann er 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 lev ied 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.