(909) 864-6861 www.highlandca.gov
Penny Lilburn, Mayor
District 3
Jimmy Saldana, Mayor Pro Tem
District 2
Gregory Hogan, Councilmember
District 1
Larry McCallon, Councilmember
District 5
John P. Timmer, Councilmember
District 4
City Council Special Meeting Agenda
August 3, 2026 at 6:00 PM
City Hall Donahue Council Chambers
27215 Base Line, Highland, CA 92346
View the meeting live online at: www.youtube.com/@CityofHighland Staff
Carlos Zamano, City Manager
Lawrence Mainez, Community Development Director
Leticia Nava-Cruz, Director of Administrative Services/City Treasurer Octavio Duran Jr., Public Works Director/City Engineer
Maricela Marroquin, City Attorney
Alondra Muñoz, City Clerk
Missi
on Statement
Highland is dedicated to the betterment of the individual, the family, the neighborhood and the community. The City Council and the staff of Highland are dedicated to providing the quality of public facilities and services that its citizens are willing to fund and will do so as efficiently as possible.
City Council Special Meeting Agenda August 3, 2026
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City Council Special Meeting Agend a August 3, 2026
In compliance with the Americans with Disabilities Act (ADA), if you need reasonable accommodations to participate in this meeting, including auxiliary aids or services, language interpretation, or other communication assistance, please contact the City Clerk's Office at (909) 864 -6861, ext. 226, at least 72 hours prior to the meeting whenever possible. The City will make reasonable efforts to accommodate requests received with less notice.
In compliance with the Brown Act, any writings or documents provided to a majority of the legislative body regarding any item on this agenda, that are not exempt from disclosure under the California Public Records Act, will be made available for public inspection at City Hall, 27215 Base Line Highland, CA 92346, during normal business hours. Such documents will also be made available on the City’s website at www.highlandca.gov.
Levine Act: Pursuant to Government Code Section 84308, any party to a City proceeding must disclose on the record any campaign contributions made to a member of the City Council (or commission) in excess of $500 in the past 12 months. This disclosure requirement includes contributions by the party’s agent and aggregated contributions from persons or entities related to the party. Please make the disclosure as soon as possible, but no later than the beginning of the proceeding.
Call to Order
Roll Call
Public Comment
This public comment period is reserved for comments on matters within the subject matter jurisdiction of the City that are only listed on the agenda. Under the State of California Brown Act, the City Council is prohibited from discussing or taking action on any item not listed on the agenda.
Consent Calendar
1. Adoption of a Resolution Superseding Resolution No. 2026-039 for Fiscal Year 2026-2027 Solid Waste Program Fee
1. Adopt a Resolution superseding Resolution No. 2026 -039 for the levy and collection of solid waste program fees by the county tax collector to comply with the San Bernardino County Auditor - Controller/Treasurer/Tax Collector's updated submission requirements ; and
2. Authorize the City Manager, in consultation with the City Attorney, to make any additional clerical or non -substantive revisions to the proposed if it is rejected again as a result of the County of San Bernardino's new Direct Charge processing requirements .
2. Authorization to Award and Execute Agreements for the Heating, Ventilation, and Air Conditioning (HVAC) System Repairs for the Highland Senior Center
1. Waive formal contract procedures per Municipal Code Section 2.40.100 for which the City’s best interests are served; and
2. Authorize the City Manager to sign agreements related to the purchase and installation of HVAC improvements at the Highland Senior Center in an amount not to exceed $140,000.
City Council Special Meeting Agend a August 3, 2026
City Council Legislative
3. Resolution of Intention to Establish City of Highland Community Facilities District No. PS 26-001, Citywide Public Safety Services (Work Program, UP-)
Adopt Resolution No. 2026-______, entitled: "A Resolution of Intention of the City Council of the City of Highland, California to Establish City of Highland Community Facilities District No. PS 26 - 001 (Citywide Public Safety Services), To Authorize the Lev y of a Special Tax Within Such District to Fund Certain Services, and to Designate a Future Annexation Area, Making a Determination Pursuant to the California Environmental Quality Act, and Taking Related Actions”. The proposed community facilities district (the “CFD”) is generally located north of Crest Street, South of Base Line, west of Central Avenue and east of Hillview Street.
Adjourn
Regular Meetings
Effective March 1, 2022, pursuant to Resolution No. 2022 -001, the regular City Council meetings will
be held once a month on the second Tuesday of each month. The next regular meeting of the City Council is scheduled for August 11, 2026.
Certification
I, Alondra Muñoz, City Clerk, or my designee, hereby certify that the foregoing agenda was posted on our website at www.highlandca.gov and in the following designated areas: Highland Branch Library (7863 Central Avenue), Fire Station No. 1 (26974 Base Line), and City Hall (27215 Base Line) at least twenty-four (24) hours prior to the meeting per Government Code Section 54954.2.
Staff Report
to the City Council
Agenda
Item
No.1.
Date: August 3, 2026
From: Carlos Zamano, City Manager
Reviewed By: Octavio Duran, Public Works Director/City Engineer Prepared By: Melissa Morgan, Public Services Manager
Subject: Adoption of a Resolution Superseding Resolution No. 2026-039 for Fiscal Year 2026-2027 Solid Waste Program Fee
Recommendation:
1. Adopt a Resolution superseding Resolution No. 2026-039 for the levy and collection of solid waste program fees by the county tax collector to comply with the San Bernardino County Auditor-Controller/Treasurer/Tax Collector's updated submission requirements; and
2. Authorize the City Manager, in consultation with the City Attorney, to make any additional clerical or non-substantive revisions to the proposed if it is rejected again as a result of the County of San Bernardino's new Direct Charge processing requirements.
Fiscal Impact:
None.
Public Notice:
The agenda for this item was posted at the three locations per Resolution No. 2011-047 and on the City’s website.
Background:
Each year, the City Council adopts a resolution authorizing the levy and collection of Solid Waste Program Fees by the San Bernardino County Auditor-Controller/Treasurer/Tax Collector for placement on the annual property tax roll.
On July 23, 2026, Burrtec Waste Industries notified the City that Resolution No. 2026-039, previously adopted by the City Council, did not meet the County's updated submission requirements. The County recently implemented a new Direct Charge Portal and revised the required language and documentation for resolutions submitted for placement of charges on the property tax roll. The County has advised that the resolution must be revised to comply with the new requirements.
The proposed revisions are administrative in nature and incorporate the language and formatting required by the County to allow the City's Solid Waste Program Fees to be
processed through the new Direct Charge Portal and placed on the Fiscal Year 2026-2027 property tax roll. Approval of the revised resolution will supersede the previously adopted resolution and ensure continued levy and collection of the fees for Fiscal Year 2026-2027.
Attachments:
1. Proposed Revised Resolution levying residential refuse collection fee for FY 2026-27
Staff Report
to the City Council
Agenda
Item
No.2.
Date: August 3, 2026
From: Carlos Zamano, City Manager
Reviewed By: Octavio Duran, Public Works Director/City Engineer Prepared By: Jim Richardson, Public Works Manager
Subject: Authorization to Award and Execute Agreements for the Heating, Ventilation, and Air Conditioning (HVAC) System Repairs for the Highland Senior Center
(SB 1439 Campaign Contributions and Conflicts of Interest - Government Code Section 84308 is applicable)
Recommendation:
1. Waive formal contract procedures per Municipal Code Section 2.40.100 for which the City’s best interests are served;
2. Authorize the City Manager to sign agreements related to the purchase and installation of HVAC improvements at the Highland Senior Center in an amount not to exceed $140,000.
Fiscal Impact:
No City funds will be used for this project.
Public Notice:
The agenda for this item was posted at the three locations per Resolution No. 2011-047 and on the City’s website.
Background:
In response to the COVID-19 Crisis, the U.S. Department of Housing and Urban Development released a special allocation of Community Development Block Grant (CDBG) funds to the County, who subsequently released the funding to individual cities. County staff suggested the funds might be eligible for use by the Highland Senior Center to install a new, higher capacity HVAC system. On June 11, 2024, the City Council approved the Highland Senior Center's Community HVAC Improvement Project. The grant total is $178,902 and the project is being facilitated by the City on behalf of the County and the Senior Center. Improvement plans for the project have been prepared by one of the City's on-call consultants, WSP, and submitted to the California Department of State Fire Marshall (DSFM) for review and permitting.
On July 14, 2026, the City Council approved a preliminary proposal from Carrier Corporation (Carrier) in the amount of $134,313 to complete the project. Permits were obtained from DSFM on July 20th and staff reached out to Carrier to sign a purchase agreement. However, they
informed the City that the required units were no longer in stock as previously confirmed, and it would take up to 12 weeks to fulfill the order.
Time is of the essence to complete this project no later than September 30, 2026, to comply with the CDBG funding expenditure deadline. Given the long lead times, staff is pursuing alternate vendors and contractors who can complete the work within the required timeframe.
Staff is proposing to deliver the project using existing competitive contracts through a cooperative purchasing program (Sourcewell, Omnia Partners, etc.) as allowed by the City’s Municipal Code.
To facilitate the project, staff is recommending the Council authorize the City Manager to award and sign agreements related to the purchase and installation of HVAC improvements at the Highland Senior Center in the amount not to exceed $140,000.
Attachments:
None
Staff Report
to the City Council
Agenda
Item
No.3.
Date: August 3, 2026
From: Carlos Zamano, City Manager
Reviewed By: Octavio Duran, Public Works Director/City Engineer Maricela Marroquin, City Attorney
Prepared By: Chastity Scott , Engineering Technician I Subject: Resolution of Intention to Establish City of Highland Community Facilities District No. PS 26-001, Citywide Public Safety Services (Work Program, UP-)
Recommendation:
Adopt Resolution No. 2026-______, entitled: "A Resolution of Intention of the City Council of the City of Highland, California to Establish City of Highland Community Facilities District No.
PS 26-001 (Citywide Public Safety Services), To Authorize the Levy of a Special Tax Within Such District to Fund Certain Services, and to Designate a Future Annexation Area, Making a Determination Pursuant to the California Environmental Quality Act, and Taking Related Actions”. The proposed community facilities district (the “CFD”) is generally located north of Crest Street, South of Base Line, west of Central Avenue and east of Hillview Street.
Fiscal Impact:
The individual property owners are responsible for the annual payments of special taxes. The City will work with the County concerning the filing of the annual special tax with the County Auditor-Controller.
The developer and sole owner of the property initially proposed to be included in the CFD, KB Home Cal Management Service, LLC, (Developer) has posted a deposit with its application to form the CFD in order to cover City costs incurred in connection with the formation. Approval of this resolution does not in any way commit the City to any financial contribution to or liability of the CFD. The City’s cost to administer the CFD annually will be reimbursed through the special taxes levied against taxable property in the CFD.
Public Notice:
The agenda for this item was posted at the three locations per Resolution No. 2011-047 and on the City’s website.
Background:
The State legislature enacted the Mello-Roos Community Facilities Act of 1982 (the “Act”) to assist public agencies in financing certain public services. On May 22, 2001 the City Council
considered and approved goals and policies concerning community facility districts (CFD). The formation of a Citywide Public Safety CFD was included in the City's current Work Program by the City Council with an Urgent Priority designation. Accordingly, staff has been working with several projects to facilitate the process.
KB Home requested that the City assist them in forming a community facilities district in the City to cover the costs associated with providing public safety services within their development, including police, fire and paramedic services (the “Services”). The cost of the Services includes building a reserve fund for replacement and maintenance and for actual or anticipated operating cost shortfalls. The development, comprised of Tract 20693, is proposed to include 79 single-family residential parcels. The entire CFD comprises 5.15 net taxable acres (8.31 gross acres) of residentially zoned land. It is proposed that the City Council CFD will also designate a Future Annexation Area composed of the entire area within the city boundaries.
Approval of the attached Resolution is required under the Act to establish the proposed CFD, levy a special tax and fund the services. The attached Resolution declares the City Council’s intention to form the proposed CFD No. PS 26-001 (Citywide Public Safety Services), to authorize the levy of a special tax in accordance with an attached Rate and Method of Apportionment of Special Tax and designate a Future Annexation Area. The attached Resolution is the initial step for forming the CFD pursuant to the procedures prescribed by the Act, which include holding a public hearing and submitting the formation of the proposed CFD No. PS 26-001 (Citywide Public Safety Services) to the landowners at a special election, with the ballots to be distributed by mail or personal service.
The proposed maximum Special Tax is based on land use:
Land Use
Class Description Taxable Unit Maximum Special
Tax per Taxable Unit
1 Residential Property Residential Dwelling Unit $310.00 2 Commercial Property Building Square Footage $0.14
3 Mixed Used Property Building Square Footage $0.13
4 Historic Village District
Property
Building Square Footage $0.12
5 Office Professional Property Building Square Footage $0.11 6 Business Park Property Building Square Footage $0.10 7 Industrial Property Building Square Footage $0.06
The proposed Special Tax will fund costs associated with providing police protection, fire protection and suppression, and ambulance and paramedic services, including incidental expenses.
These maximum rates will increase based on the percentage increase in the Consumer Price Index with a maximum annual increase of 6% and a minimum annual increase of 2% of the Maximum Special Tax in effect in the previous fiscal year.
The attached Resolution sets a public hearing on this matter for September 8, 2026, and at that time the Council will hear any testimony concerning the proposed formation of the CFD
and consider taking action to adopt a “Resolution of Formation” and hold the special landowner election regarding establishment of the Special Tax. This is a resolution of intention and, as such, it does not need to be submitted to the County.
The Act authorizes the initiation of the establishment of community facilities districts upon receipt by the City of a petition requesting institution of proceedings by owners of not less than 10% of the area of land proposed to be included within the district. The City has received the signed petition from KB Home Cal Management Service, LLC, the sole landowner of the property proposed for inclusion in the CFD.
CEQA: Staff has determined that actions related to this item are not a project pursuant to CEQA Guidelines Section 15378(b)(4) and no further environmental review is required.
Attachments:
1. Resolution
2. Rate & Method of Apportionment
Attachment 1
RESOLUTION NO. 2026-__
A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF TH
E CITY OF
HIGHLAND, CALIFORNIA, TO ESTABLISH CITY OF HIGHLAND
COMMUNITY
FACILITIES DISTRICT NO. PS 26-001 (CITYWIDE PUBLIC
SAFETY SERVICES), TO
AUTHORIZE THE LEVY OF A SPECIAL TAX WITHIN SUCH DIS
TRICT TO FUND
CERTAIN SERVICES, AND TO DESIGNATE A FUTURE ANNEXAT
ION AREA,
MAKING A DETERMINATION PURSUANT TO THE CALIFORNIA E
NVIRONMENTAL
QUALITY ACT, AND TAKING RELATED ACTIONS
WHEREAS
, under the Mello-Roos Community Facilities Act of
1982, as amended (the
“Act”), Chapter 2.5 of Part 1 of Division 2 of Titl
e 5, commencing at Section 53311 of the
California Government Code, the City Council of the
City of Highland (the “City Council”)
is authorized to establish a community facilities d
istrict, to levy special taxes within the
district, to act as the legislative body for such d
istrict, and to designate a future annexation
area for the district; and
WHEREAS
, in accordance with the requirements of Sections 5
3318 and 53319 of the
Act, the City Council has received a petition (the
“Petition”) requesting the institution of
proceedings to create a community facilities distri
ct from the sole owner of the land
proposed for inclusion in the proposed district; an
d
WHEREAS
, pursuant to Section 53312.7 of the Act, the City
adopted goals and policies
concerning the establishment of community facilitie
s districts on May 22, 2001; and
WHEREAS,
City staff has evaluated the actions proposed to be
taken by this Resolution
and have determined that those actions are exempt f
rom the California Environmental
Quality Act, Section 21000
et seq.
of the California Public Resources Code (“CEQA”),
because they do not constitute a project, as define
d by Section 15378 (b)(4) of the CEQA
Guidelines, Article 5 of Chapter 3 of Division 6 of
Title 14 of the California Code of
Regulations. CEQA Guidelines Section 15378(b)(4) pr
ovides that the term “project” does
not include the creation of government funding mech
anisms or other government fiscal
activities, which do not involve any commitment to
any specific project which may result
in a potentally significant physical impact on the
environment; and
WHEREAS
, in accordance with the request set forth in the P
etition, the City Council
desires to undertake proceedings to establish a com
munity facilities district pursuant to
the Act to finance certain services which are in ad
dition to services currently provided in
the territory of the proposed district and are nece
ssary to meet increased demands placed
upon the City as a result of the development of suc
h land; and
WHEREAS
, the City Council further desires to undertake pro
ceedings to provide for
future annexation of territory to the proposed comm
unity facilities district.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HIG
HLAND DOES
HEREBY FIND, DETERMINE, AND RESOLVE AS FOLLOWS:
Section 1. Recitals. The foregoing recitals are tru
e and correct and are incorporated
herein.
Section 2. Intention. The City Council hereby deter
mines that public convenience and
necessity require and hereby proposes to conduct pr oceedings for the formation of a community facilities district under the terms of th
e Act, and to designate a future
annexation area as property proposed for annexation
into the district in the future, by
submittal of a Unanimous Consent and Approval of th
e owner or owners of such parcel
or parcels, as approved by the City Council at the
time that such parcel or parcels are
annexed to the district.
Section 3. Name of District and Designation of Futu
re Annexation Area. The name of
the proposed community facilities district is “City of Highland Community Facilities District No. PS 26-001 (Citywide Public Safety Services)” (t
he “District”), which shall be
comprised of Tract 20693. The territory proposed to
be annexed into the District in the
future is designated as the “Future Annexation Area
” as shown in Exhibit “E” attached
hereto and incorporated herein.
Section 4. Boundaries of District and Future Annexa
tion Area. The exterior boundaries
of the proposed District are shown on the map now o n file in the office of the City Clerk entitled “Proposed Boundary - City of Highland Comm
unity Facilities District No. PS 26-
001 (Citywide Public Safety Services) (the “Map”) a
s shown in Exhibit “D” attached hereto
and incorporated herein. The Map indicates by a bou
ndary line, the extent of the territory
included in the proposed District and shall govern
for all details as to the extent of the
District. On the original and one copy of the Map,
the City Clerk shall endorse the
certificate evidencing the date and adoption of thi
s Resolution. The City Clerk shall file
the original of the Map in the Clerk’s office and,
within fifteen days after the adoption of
this Resolution, the City Clerk shall file, or caus
e to be filed, a copy of the Map so
endorsed in the records of the County Recorder, San
Bernardino County, State of
California, and in any event this Map shall be file
d no later than fifteen days before the
public hearing specified in Section 7 below. The ex
terior boundaries of future annexed
areas shall be recorded at the time of annexation f
or each annexed area.
Section 5. Services. The type of services proposed
to be provided within the District
and to be financed under the Act shall consist of t hose services set forth on Exhibit “A” (the “Services”), attached hereto and incorporated
herein. The Services are necessary to
meet increased demands placed upon the City as a re
sult of the development occurring
in the District and the Future Annexation Area. The
Services are in addition to those
provided in the territory of the District before th
e date of creation of the District and the
additional Services shall not supplant services alr
eady available within that territory when
the District is created. In addition, the Services
shall be in addition to those provided in
any territory of the Future Annexation Area before
the annexation of such territory and
the additional Services shall not supplant services
already available within such territory
when the annexation occurs.
Section 6. Special Tax.
a. Except where funds are otherwise available to pa
y for the Services, it is the
intention of the City Council, commencing Fiscal Ye
ar 2026-2027, to levy annually in
accordance with procedures contained in the Act a s
pecial tax (the “Special Tax”) within
the District sufficient to pay for the costs thereo
f, including incidental expenses. The types
of incidental expenses proposed to be incurred are
set forth in Exhibit “B” attached hereto
and incorporated herein. The Special Tax will be se
cured by recordation of a continuing
lien against all non-exempt real property in the Di
strict and will be collected in the same
manner as ordinary ad valorem property taxes are co
llected, or in such other manner as
may be provided by the City Council including, with
out limitation, direct billing of the
affected property owner, and shall be subject to th
e same penalties, procedure, sale and
lien priority in case of delinquency as applicable
for ad valorem property taxes. An
amended continuing lien securing the Special Tax le
vied within territory in the Future
Annexation Area shall be recorded at the time of an
nexation of each such territory. In the
first year in which the Special Tax is levied, the
levy shall include a sum sufficient to repay
to the City all amounts, if any, transferred to the
District pursuant to Section 53314 of the
Act and interest thereon.
b. The proposed Rate and Method of Apportionment of
the Special Tax (the “Rate
and Method”) among parcels of real property in the
District, in sufficient detail to allow
each resident or landowner within the proposed Dist
rict to estimate the maximum amount
such resident or owner will have to pay, is shown i
n Exhibit “C,” attached hereto and
incorporated herein. The City Council hereby determ
ines the Rate and Method set forth
in Exhibit “C” to be reasonable. As required by Sec
tion 53339.3(d) of the Act, the City
Council hereby determines that the Special Tax prop
osed to pay for Services to be
provided within the Future Annexation Area shall be
equal to any Special Tax levied to
pay for the same Services in the existing 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 highe
r or lower than the cost of providing
those Services in the existing District. In so fin
ding, 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 th
e existing District.
Section 7. Hearing. A public hearing on the establi
shment of the District, the extent of
the District, the designation of the Future Annexat ion Area, the furnishing of Services within the District, the Special Tax, and the propo
sed Rate and Method (the "Hearing")
shall be held on September 8, 2026, at 6:00 p.m., o
r as soon thereafter as practicable, in
the Council Chambers of the City of Highland, 27215
Base Line Highland, California
92346. At the Hearing, any interested person or tax
payer, including all persons owning
lands or registered to vote within the proposed Dis
trict, may appear and be heard.
Section 8. Report. The City officers who are or wil
l be responsible for providing the
Services are directed to study the proposed Distric t and prepare for filing with the City
Clerk and City Council a report on the District req uired by Section 53321.5 of the Act before or at the Hearing. The City officers may del
egate to consultants of the City the duty
to perform the study and prepare the report.
Section 9. Advances. The City may accept advances o
f funds or work in-kind from any
source, including, but not limited to, private pers ons or private entities, and is authorized and directed to use such funds or that work in-kind
for any authorized purpose, including,
but not limited to, paying any cost incurred by the
City in creating the District. The City
may enter into an agreement with the person or enti
ty advancing the funds or work-in-
kind, to repay all or a portion of the funds advanc
ed, or to reimburse the person or entity
for the value, or cost, whichever is less, of the w
ork-in-kind, as determined by the City
Council, with or without interest.
Section 10. Published Notice. The City Clerk is her
eby directed to publish a notice of
the Hearing (“Notice”), pursuant to Section 6061 of the California Government Code, once in a newspaper of general circulation published in
the area of the proposed District and
the Future Annexation Area. Such Notice shall be su
bstantially in the form specified in
Section 53222 of the Act. Publication of the Notice
shall be completed at least seven days
prior to the date of the Hearing.
Section 11. Mailed Notice. The City Clerk is hereby
directed to send a copy of the Notice
by first-class mail, postage prepaid, to each regis tered voter and to each landowner within the proposed District as shown on the last equalize
d assessment roll. Mailing of the Notice
shall be completed at least fifteen days prior to t
he date of the Hearing.
Section 12. Voting. Should the City Council determi
ne to form the District, a special
election will be held within the District to author ize the levy of the Special Tax in accordance with the procedures contained in Section
53326 of the Act. If held, the
proposed voting procedure at the election will be a
landowner vote with each landowner
who is the owner of record of land within the Distr
ict at the close of the Hearing, or the
authorized representative thereof, having one vote
for each acre or portion thereof owned
within the District. Ballots for the special electi
on may be distributed by mail with return
postage prepaid or by personal service. A Special T
ax shall be levied in the Future
Annexation Area only with the Unanimous Consent and
Approval of the owner or owners
of each parcel or parcels at the time that parcel o
r those parcels are annexed, without
any requirement for further public hearings or addi
tional proceedings, unless required by
law.
Section 13. Exemptions from Special Tax. Except as
may otherwise be provided in
Exhibit “C,” attached hereto and incorporated herei n, or by law, all lands owned by any public entity, including the United States, the Sta
te of California, County of San
Bernardino and/or the City, or any departments or p
olitical subdivisions thereof, shall be
omitted from the levy of the Special Tax to be made
to cover the costs and expenses of
the Services. Provided, however, any leasehold or p
ossessory interest in such public
property that is subject to taxation under applicab
le law shall not be considered exempt.
In addition, a property receiving a welfare exempti
on under subdivision (g) of Section 214
of the Revenue and Taxation Code shall be exempt fr om the Special Tax. In the event that a portion of the taxable property within the D
istrict shall become for any reason
exempt, wholly or in part, from the levy of the Spe
cial Tax, the City Council will, on behalf
of the District, increase the levy to the extent ne
cessary upon the remaining property
within the District, which is not exempt, in order
to yield the annual expenses of the
District, subject to the provisions of the Rate and
Method. Reference is hereby made to
Exhibit “C” for a description of other lands, if an
y, which shall be omitted from the levy of
the Special Tax.
Section 14. Election to Perform Work. Pursuant to S
ection 53329.5(c) of the Act, the
City Council finds that, in its opinion, the public interest will not be served by allowing property owners in the District or the Future Annex
ation Area to enter into a contract
pursuant to Section 53329.5(a) of the Act.
Section 15. Further Action.
The City Council, the City Manager, the City Clerk,
and all
other officers and agents of the City are hereby au thorized and directed to take all actions necessary or advisable to give effect to the transa
ctions contemplated by this Resolution
and all actions previously taken are hereby ratifie
d.
Section 16. CEQA. The City Council concurs with Sta
ff’s determination that the actions
proposed to be taken pursuant to this Resolution a re not a project pursuant to CEQA Guidelines Section 15378(b)(4). Therefore, no furt
her environmental review is required.
APPROVED AND ADOPTED
this ___ day of _____August, 2026.
__________________________
Penny Lilburn
Mayor
ATTEST:
___________________________
Alondra Muñoz
City Clerk
Exhibit “A”
Description of Authorized Services
The types of services proposed to be provided in, a
nd financed by, the City of Highland
Community Facilities District No. PS 26-001 (Citywi
de Public Safety Services) (the
“District”) include police protection services, fir
e protection and suppression services, and
ambulance and paramedic services (the “Services”).
The Services may be provided by
the City either with its employees or by contract w
ith third parties or any combination
thereof. The Services are in addition to those prov
ided in the territory of the District before
the date of creation of the District and the additi
onal Services shall not supplant services
already available within that territory when the Di
strict is created. In addition, the Services
shall be in addition to those provided in any terri
tory of the Future Annexation Area before
the annexation of such territory and the additional
Services shall not supplant services
already available within such territory when the an
nexation occurs.
The costs associated with providing the Services in
clude but are not limited to:
• The costs of contracting Services;
• The cost of equipment, vehicles, ambulances, fire a pparatus, and supplies;
• The salaries and benefits of City staff associated with providing the Services within the District or contracting for the Services;
• City overhead costs associated with providing the Services within the District;
• The cost of building a reserve fund for replacement and maintenance and for the actual or anticipated shortfalls due to Special Tax
delinquencies in the current or
prior Fiscal Year; and
• Incidental Expenses, which are described in Exhibit “B”.
Exhibit “B”
Incidental Expenses
The cost of the Services shall include incidental e
xpenses, defined as the broader
category of expenses, authorized by the Act, incurr
ed in connection with the formation of
the CFD, determination of the amount of the Special
Tax, collection of the Special Tax,
payment of the Special Tax and costs incurred in or
der to carry out the authorized
purposes of the CFD.
The following incidental expenses are examples of t
hose that may be incurred in the
formation or administration of the District:
• Necessary consultant costs;
• Costs of publishing, mailing and posting of notice s;
• Governmental notification and filing costs;
• Administrative costs of the City or designee there of;
• Election costs;
• Charges and fees of the City:
• Costs of any litigation or appeal involving the Di strict; and
The following incidental expenses are examples of t
hose that may be incurred in
connection with each annual Special Tax levy:
• Necessary consultant costs;
• Costs of determining and collecting the Special Ta xes; and
• Administrative costs of the City or designee there of.
Exhibit “C”
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
CITY OF HIGHLAND COMMUNITY FACILITIES DISTRICT NO.
PS 26-001
(CITYWIDE PUBLIC SAFETY SERVICES)
OF THE CITY OF HIGHLAND, COUNTY OF SAN BERNARDINO
STATE OF CALIFORNIA
A Special Tax (all capitalized terms are defined in
Section A., “Definitions”, below) shall
be applicable to each Parcel of Taxable Property lo
cated within the boundaries of City of
Highland Community Facilities District No. PS 26-00
1 (Citywide Public Safety Services).
The amount of Special Tax to be levied on a Parcel
in each Fiscal Year, commencing in
Fiscal Year 2026-2027, shall be determined by the C
ity Council of the City of Highland,
acting in its capacity as the legislative body of t
he CFD by applying the appropriate Special
Tax as set forth in Sections B., C., and D., below.
All of the real property within the CFD,
unless exempted by law or by the provisions of Sect
ion F. below, shall be taxed for the
purposes, to the extent and in the manner herein pr
ovided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“
Accessory Dwelling Unit(s)
” or
“ADU”
means a secondary attached or detached
Residential Dwelling Unit with complete independent
living facilities for one or more
persons. The ADU may be on the same Assessor’s Parc
el as the Single Family Residential
Property’s primary Residential Dwelling Unit or on
a separate Assessor’s Parcel. For
purposes of clarification, where an ADU and primary
Residential Dwelling Unit are on the
same Assessor’s Parcel, the ADU located on such Ass
essor’s Parcel is considered one
additional Residential Dwelling Unit for purposes o
f calculating the Special Tax. Should an
Assessor’s Parcel contain only an ADU, such Assesso
r’s Parcel will be taxed as a single
Residential Dwelling Unit only.
“Acre”
or
“Acreage”
means the land area of a Parcel as indicated on the
most recent
Assessor’s Parcel Map, or if the land area is not s
hown on the Assessor’s Parcel Map,
the land area shown on the applicable Final Map, co
ndominium plan, or other recorded
County map or the land area calculated to the reaso
nable satisfaction of the Administrator
using the boundaries set forth on such map or plan.
The square footage of a Parcel is
equal to the Acreage of such Parcel multiplied by 4
3,560.
“Act”
means the Mello-Roos Community Facilities Act of 19
82, as amended, being
Chapter 2.5 of Part 1 of Division 2 of Title 5 of t
he Government Code of the State of
California.
“Administrative Expenses”
means ongoing annual costs of operating and managin
g
the CFD after it has been formed. These include all
actual or reasonably estimated costs
and expenses incurred by the City that are chargeab
le or allocable to carry out its duties
as the administrator of the CFD as allowed by the A
ct, which shall include without
limitation, all costs and expenses arising out of o
r resulting from the annual levy and
collection of the Special Tax (whether by the City
or designee thereof or both), any
litigation or appeal involving the CFD, and other a
dministrative expenses of the City or
designee thereof, or both, directly related to the CFD. Administrative Expenses shall also include amounts estimated or advanced by the City.
“Administrator”
means an official of the City, or designee thereof,
responsible for
determining the annual amount of the levy and colle
ction of the Special Taxes.
“Approved Property”
means all Parcels of Taxable Property: (i) that are
included in a
Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have
not been issued a Building Permit prior
to the April 1st preceding the Fiscal Year in which the Special Tax is being levied. “Assessor”
means the Assessor of the County .
“Assessor’s Parcel Map”
means an official map of the Assessor of the County
designating Parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number”
means the number assigned to a Parcel for purposes
of
identification as determined from an Assessor Parce
l Map or the applicable assessment
roll.
“Base Year”
means the Fiscal Year ending June 30, 2027. Rates i
n this Rate and Method
of Apportionment for the initial formation are base
d on FY 2026-27 costs, which will be
escalated beginning in FY 2027-28. The Base Year fo
r future annexations shall be the
fiscal year the annexation is approved by the City
Council.
“Boundary Map”
means a recorded map of the CFD which indicates by
a boundary
line the extent of the territory identified to be s
ubject to the levy of Special Taxes, as
may be amended due to future annexations of territo
ry to the CFD.
"Building Permit"
means the first legal document issued by a local ag
ency giving official
permission for new construction.
"Building Square Footage"
or
“BSF”
means the floor area square footage reflected on
the original construction building permit issued fo
r construction of a building on Non -
Residential Property and any Building Square Footag e subsequently added to a building of such Non -Residential Property after issuance of a building p ermit for expansion or renovation of such building.
“Business Park Property”
means Business Park land use as defined in the City
of
Highland General Plan, as amended from time to time
. If the development is subject to a
Specific Plan, Development Agreement, or other over
riding legal instrument that deviates
from the General Plan, the definitions in that docu
ment shall be the authorized definition.
“Calendar Year”
means the twelve month period from January 1st thr
ough December
31st of the same year.
“CFD”
or
“CFD PS 26-001”
means City of Highland Community Facilities Distric
t No. PS
26-001 (Citywide Public Safety Services).
“City” means the City of Highland, California.
“City Council”
means the City Council of the City acting as the le
gislative body of the
CFD.
“Commercial Property”
means Commercial land use as defined in the City of
Highland
General Plan, as amended from time to time. If the
development is subject to a Specific
Plan, Development Agreement or other overriding leg
al instrument that deviates from the
General Plan, the definitions in that document shal
l be the authorized definition.
“Condominium Residential Property”
means all Parcels of Developed Property or
Approved Property with an approved land use for res
idential condominiums (two or more
attached units which can each be owned individually
). Parcels that are open space,
recreation, clubhouse, etc., owned by a condominium
association, homeowner’s
association, or property owner’s association, are E
xempt Property.
“Consumer Price Index”
means the Consumer Price Index published by the U.S
.
Department of Labor, Bureau of Labor Statistics for
“All Urban Consumers in the Riverside-
San Bernardino-Ontario Area”, measured as of the mo
nth of March in the Calendar Year
which ends in the previous Fiscal Year. In the even
t this index ceases to be published, the
Consumer Price Index shall be another index as dete
rmined by the Administrator that is
reasonably comparable to the Consumer Price Index f
or the Riverside-San Bernardino-
Ontario Area.
“County”
means the County of San Bernardino, California.
“Developed Property”
means all Parcels of Taxable Property for which a B
uilding Permit
for new construction has been issued prior to April
1 st preceding the Fiscal Year in which
the Special Tax is being levied.
“Exempt Property”
means any Parcel which is exempt from Special Taxes
pursuant to
Section F., below.
“Final Map”
means the survey-based map prepared by a registered
civil engineer or
licensed land surveyor, approved by the local agenc
y and recorded in the office of the
County Recorder, which legally subdivides land and
establishes the lots, rights-of-way,
easements, and dedications depicted thereon in acco
rdance with the California
Subdivision Map Act (California Government Code Sec
tion 66410
et seq
.) or recordation
of a condominium plan pursuant to California Civil
Code 1352 that creates individual lots
for which Building Permits may be issued without fu
rther subdivision
“Fiscal Year”
or
“FY”
means the 12-month period starting on July 1 of an
y Calendar
Year and ending the following June 30.
“Future Annexation Area”
means the geographic area that, at the time of CFD
formation, was considered potential annexation area
for the CFD and which was,
therefore, identified as “future annexation area” o
n the recorded Boundary Map. Such
designation does not mean that any or all of the Fu ture Annexation Area will annex into the CFD but should the owner or owners of property
designated as Future Annexation
Area choose to annex, the annexation may be process
ed pursuant to the annexation
procedures in the Act for territory included in the
Future Annexation Area.
“Historic Village District Property” or “HVD”
means Historic Village District land use
as defined in the City of Highland General Plan, as
amended from time to time. If the
development is subject to a Specific Plan, Developm
ent Agreement or other overriding
legal instrument that deviates from the General Pla
n, the definitions in that document shall
be the authorized definition.
“Incidental Expenses”
means the broader category of expenses, authorized
by the Act,
incurred in connection with the formation of the CF
D, determination of the amount of the
Special Tax, collection of the Special Tax, payment
of the Special Tax and costs incurred
in order to carry out the authorized purposes of th
e CFD.
“Industrial Property”
means Light Industrial land use as defined in the C
ity of Highland
General Plan, as amended from time to time. If the
development is subject to a Specific
Plan, Development Agreement, or other overriding le
gal instrument that deviates from the
General Plan, the definitions in that document shal
l be the authorized definition.
“Land Use Class”
means any of the classes listed in Table 1 or Table
2 of Section C.
“Maximum Special Tax”
means for each Parcel in each Fiscal Year, the grea
test amount
of Special Tax, determined in accordance with Secti
on C., below, which may be levied on
such Parcel in such Fiscal Year.
“Mixed Use Property”
means all Parcels of Developed Property and Approve
d Property
with more than one land use including Residential U
se, commercial, retail, or other land
uses, as defined in the City of Highland General Pl
an, as amended from time to time. If the
development is subject to a Specific Plan, Developm
ent Agreement or other overriding legal
instrument that deviates from the General Plan, the
definitions in that document shall be the
authorized definition. If a Parcel contains both Re
sidential and Non-Residential Uses, each
use shall be classified separately by the Administr
ator, and the applicable Maximum Special
Tax shall be calculated for each use in accordance
with Section C. The total Special Tax
levied on the Parcel shall be the sum of the taxes
applicable to each use.
“Multifamily Residential Property
” means all Parcels of Developed Property and
Approved Property with Multifamily Residential land
uses as defined in the City of Highland
General Plan, as amended from time to time, and con
sisting of a building or buildings
comprised of attached Dwelling Units available for
rent, not for sale to an end user, and
under common management. If the development is subj
ect to a Specific Plan,
Development Agreement or other overriding legal ins
trument that deviates from the
General Plan, the definitions in that document shal
l be the authorized definition.
“Non-Residential Use”
means a use of property that is not Residential.
“Non-Residential Property” means all Parcels of Developed Property that are no t Residential Property, including Commercial Property
, Office Professional Property,
Business Park Property, Industrial Property, Histor
ic Village District Property, and the
Non-Residential Use portion of Mixed Use Property,
as determined by the Administrator.
“Office Professional Property”
means Office Professional land use as defined in th
e
City of Highland General Plan, as amended from time
to time. If the development is
subject to a Specific Plan, Development Agreement o
r other overriding legal instrument
that deviates from the General Plan, the definition
s in that document shall be the
authorized definition.
“Parcel(s)”
means a lot or parcel within the CFD shown on an As
sessor’s Parcel Map
with an assigned Assessor’s Parcel Number valid as
of July 1 st for the Fiscal Year for
which the Special Tax is being levied.
“Property Owner’s Association Property”
means all Parcels which have been conveyed,
dedicated to, or irrevocably offered for dedication
to a property owner association , including
any master or sub-association, prior to April 1 st preceding the Fiscal Year in which the Special Tax is being levied. The Special Tax shall
not be levied on Property Owner’s
Association Property.
“Proportionately”
means for Parcels of Taxable Property that are (i)
Residential Property,
that the ratio of the actual Special Tax to the Max
imum Special Tax is the same for all
Parcels of Residential Property; (ii) Non-Residenti
al Property, that the ratio of the actual
Special Tax to the Maximum Special Tax is the same
for all Parcels of Non-Residential
Property; and (iii) Approved Property, that the rat
io of the actual Special Tax to the
Maximum Special Tax is the same for all Parcels of
Approved Property.
“Public Property”
means all Parcels which, as of April 1 st preceding the Fiscal Year in which the Special Tax is being levied, are (i) used
for rights-of-way or any other purpose
and are owned by, dedicated to, or irrevocably offe
red for dedication to the federal
government, the State, the County, City or any othe
r public agency, provided, however,
that any property leased by a public agency to a pr
ivate entity and subject to taxation
under Section 53340.1 of the Act shall be taxed and
classified according to its use; or (ii)
encumbered by an unmanned utility easement making i
mpractical its utilization for other
than the purpose set forth in the easement.
“Residential Dwelling Unit”
or
"RDU"
means a residential unit that is used or intended
to be used as a domicile by one or more persons, as
determined by the Administrator,
which includes Single Family Residential Property,
Multifamily Residential Property,
Condominium Residential Property, Mixed Use Propert
y and an Accessory Dwelling Unit.
“Residential Property”
means all Parcels of Developed Property that have b
een issued
a Building Permit for one or more Residential Dwell
ing Units, including Single Family
Residential Property, Multifamily Residential Prope
rty, Condominium Residential Property,
Mixed Use Property containing Residential Dwelling
Units, and Accessory Dwelling Units,
as determined by the Administrator. If a Parcel con
tains both Residential and Non-
Residential Uses, the residential portion shall be classified and taxed in accordance with this Rate and Method of Apportionment.
“Residential Use”
has the same definition as the term is defined in
Section 16.06.180 of
the Highland Municipal Code, as amended from time t
o time.
“Single Family Residential Property”
means all Single Family land uses as defined in
the City of Highland General Plan, as amended from
time to time, and excluding
Multifamily Residential Property. If the developmen
t is subject to a Specific Plan,
Development Agreement or other overriding legal ins
trument that deviates from the
General Plan, the definitions in that document shal
l be the authorized definition.
“Special Tax(es)”
means the Special Tax to be levied in each Fiscal Y
ear on each Parcel
of Taxable Property in accordance with Sections C.
and D.
“Special Tax Requirement”
means for each Fiscal Year, that amount required to
pay the
estimated cost of Special Tax Services for such Fis
cal Year as determined by the City,
including Administrative Expenses and Incidental Ex
penses less a credit for funds available
to reduce the annual Special Tax levy as determined
by the Administrator.
“
Special Tax Services”
means police protection, fire protection and suppre
ssion, and
ambulance and paramedic services.
“State”
means the State of California.
“Taxable Property”
means all Parcels within the boundary of the CFD pu
rsuant to the
Boundary Map which are not exempt from the Special
Tax pursuant to Section F., below.
“Taxable Unit”
means either a Residential Dwelling Unit, Building
Square Footage, or
Parcel, as shown in Table 1 and Table 2.
“Undeveloped Property”
means all Parcels not classified as Developed Prope
rty,
Approved Property, Public Property, Property Owner’
s Association Property or open
space, recreation, clubhouse, etc., owned by a cond
ominium association or homeowner’s
association within the CFD.
B. CLASSIFICATION OF PROPERTY
Each Fiscal Year, commencing with Fiscal Year 2026- 2027, all Parcels of Property shall be classified as either Taxable Property or Exempt
Property. Taxable Property shall be
further classified as Developed Property or Approve
d Property and be subject to the levy
of Special Taxes in accordance with this Rate and M
ethod of Apportionment as
determined pursuant to Sections C. and D.
Parcels of Developed Property shall further be clas
sified as Residential Property or Non-
Residential Property. Non-Residential Property shal
l be further classified by the
Administrator as Commercial Property, Mixed Use Pro
perty, Historic Village District
Property, Office Professional Property, Business Pa rk Property or Industrial Property. The Administrator shall also determine the number of Re
sidential Dwelling Units and the
Building Square Footage applicable to each Parcel.
C. MAXIMUM SPECIAL TAX RATES
For each Fiscal Year commencing Fiscal Year 2026-20 27, Maximum Special Tax Rates shall be determined as described below:
For purposes of determining the applicable Maximum
Special Tax for Assessor’s Parcels
of Developed Property and Approved Property which a
re classified as Residential
Property, all such Assessor’s Parcels shall be assi
gned the number of RDUs constructed
or to be constructed thereon as specified in or sho
wn on the Building Permit(s) issued or
Final Map as determined by the Administrator. Once
a Residential Property building or
buildings have been built on an Assessor's Parcel,
the Administrator shall determine the
actual number of RDUs contained within the building
or buildings, and the Special Tax
levied against the Assessor’s Parcel in the next Fi
scal Year shall be calculated by
multiplying the actual number of RDUs by the Maximu
m Special Tax per RDU. For
purposes of determining the applicable Maximum Spec
ial Tax for Assessor’s Parcels of
Developed Property and Approved Property which are
classified as Non-Residential
Property, the Administrator shall determine the Bui
lding Square Footage from the
applicable Building Permit(s), approved building pl
ans, certificate of occupancy, County
Assessor records, or other records deemed reliable
by the Administrator. Once the
Administrator determines the actual quantity of Bui
lding Square Feet for the Assessor’s
Parcels, the Special Tax levied against the Assesso
r’s Parcel in the next Fiscal Year shall
be calculated by multiplying the quantity of Buildi
ng Square Feet by the Maximum Special
Tax per Taxable Unit identified in the Tables below
.
1. Developed Property
The Maximum Special Tax for each Assessor’s Parcel
of Developed Property for
Fiscal Year 2026 ‐27 is identified in Table 1 below. These Maximum Sp ecial Tax Rates are subject to annual escalation, as explaine
d further in Section C. 1. (a)
below.
TABLE 1
Maximum Special Tax Rates for Developed Property
Fiscal Year 2026-2027
Land
Use
Class
Description Taxable Unit
Maximum Special Tax
per Taxable
Unit
1 Residential Property Residential Dwelling Unit $ 310.00 2 Commercial Property Building Square Footage $0.14
3 Mixed Use Property Building Square Footage $0.13
4 Historic Village District Property Building Square Footage $0.12 5 Office Professional Property Building Square Foot age $0.11 6 Business Park Property Building Square Footage $0 .10 7 Industrial Property Building Square Footage $0.06
(a) Increase in the Maximum Special Tax
On each July 1 following the Base Year, the Maximum Special Tax, identified in Table 1 above, shall be increased annually, commenc
ing July 1, 2027, based on
the percentage increase in the Consumer Price Index
with a maximum annual
increase of six percent (6%) and a minimum annual i
ncrease of two percent (2%)
of the Maximum Special Tax in effect in the previou
s Fiscal Year.
(b) Multiple Land Use Classes
In some instances, a Parcel of Developed Property m ay contain more than one Land Use Class. The Maximum Special Tax that may be levi
ed on such Parcel shall be the
sum of the Maximum Special Tax that can be levied f
or each Land Use Class located
on that Parcel. The Maximum Special Tax Rate for Re
sidential Property shall apply
to any Residential Dwelling Units on the parcel. Th
e Maximum Special Tax Rate for
Commercial Property, Mixed Use Property, Historic V
illage District Property, Office
Professional Property, Business Park Property, and
Industrial Property shall apply to
the Building Square Feet of those land uses on the
property.
2. Approved Property
The Maximum Special Tax for each Assessor’s Parcel
of Approved Property for
Fiscal Year 2026 ‐27 is identified in Table 2 below. These Maximum Sp ecial Tax Rates are subject to annual escalation, as explaine
d further in Section C. 2. (a)
below.
TABLE 2
Maximum Special Tax Rates for Approved Property
Fiscal Year 2026-2027
Land Use Class Taxable Unit
Maximum
Special Tax
per Taxable
Unit
Approved Property Parcel $ 110.00
(a) Increase in the Maximum Special Tax
On each July 1, following the Base Year, the Maximu m Special Tax, identified in Table 2, above, shall be increased annually, commen
cing July 1, 2027, based on
the percentage increase in the Consumer Price Index
with a maximum annual
increase of six percent (6%) and a minimum annual i
ncrease of two percent (2%)
of the Maximum Special Tax in effect in the previou
s Fiscal Year.
3. Property Not Subject to the Special Tax
No Special Tax shall be levied on Exempt Property.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2026-2027 and for each following Fiscal Year, the Administrator shall levy the Special Tax on all Tax
able Property until the amount
of Special Tax equals the Special Tax Requirement i
n accordance with the
following steps:
First: The Special Tax shall be levied Proportionat
ely on each Parcel of Developed
Property at up to 100% of the applicable Maximum Sp ecial Tax as needed to satisfy the Special Tax Requirement; and
Second: If additional moneys are needed to satisfy
the Special Tax Requirement
after the first step has been completed, the Specia l Tax shall be levied Proportionately on each Parcel of Approved Property
at up to 100% of the
Maximum Special Tax for Approved Property.
E. FUTURE ANNEXATIONS
It is anticipated that properties in the Future An nexation Area will be annexed to the CFD from time to time. The Base Year for each annexatio
n shall be the Fiscal Year in which the
annexation is approved by the City Council. The Max
imum Special Tax applicable to the
annexed territory shall be established based on the rates in effect for that Fiscal Year and shall thereafter be escalated as explained in Secti
on C.1.(a) and Section C.2.(a).
F. EXEMPTIONS
The CFD shall not levy Special Taxes on Undeveloped Property, Public Property, Property Owner’s Association Property, open space,
recreation, clubhouse, etc, owned
by a condominium association or homeowner’s associa
tion within the CFD and property
covered under Sections 54317.3 and 53317.5 of the A
ct. If any Undeveloped Property,
Public Property, or Property Owner’s Association Pr
operty is converted to Taxable
Property as the result of a sale or transfer of an
Exempt Parcel to a private owner for
Residential Use or Non-Residential use, it shall be
come subject to the Special Tax in
accordance with this Rate and Method of Apportionme
nt as determined pursuant to
Sections C. and D. The CFD shall not levy Special T
axes on a Parcel that receives a
welfare exemption under subdivision (g) of Section
214 of the Revenue and Taxation
Code unless debt is outstanding and the Parcel was
subject to the special tax prior to
receiving the exemption, in which case the Parcel s
hall remain subject to the Special Tax
and the Special Tax shall be enforceable against th
e Parcel.
G. MANNER OF COLLECTION
The Special Tax shall be collected in the same mann er and at the same time as ordinary ad valorem
property taxes and shall be subject to the same pen
alties, the same
procedure, sale and lien priority in the case of de
linquency; provided, however, that the
Administrator may directly bill the Special Tax and
may collect Special Taxes at a different
time or in a different manner if necessary to meet
the financial obligations of the CFD or
as otherwise determined appropriate by the Administ
rator.
H. APPEALS
Any taxpayer who believes that the Special Tax levi ed on their Parcel(s) is in error may file a written appeal of the Special Tax on his/her
Parcel(s) with the Administrator no later
than April 10 of the Fiscal Year in which the levy
occurred, provided that the appellant is
current in his/her payments of Special Taxes. The a
ppeal must clearly specify the grounds
upon which the taxpayer believes the Special Tax is
erroneous. During the pendency of
an appeal, all Special Taxes must be paid on or bef
ore the payment due date established
when the levy was made. The appeal must specify the
reasons why the appellant claims
the Special Tax is in error. The Administrator shal
l review the appeal, meet with the
appellant if the Administrator deems necessary, and
advise the appellant of its
determination. If the Administrator agrees with the
appellant, the Administrator shall grant
a credit to eliminate or reduce future Special Taxe
s on the appellant’s Parcel(s). No
refunds of previously paid Special Taxes shall be m
ade. The Administrator’s decision is
final and binding.
Interpretation of this Rate and Method of Apportion ment may be made by the Administrator or by resolution of the City Council
for purposes of clarifying any vagueness
or uncertainty as it relates to the application of
the Special Tax rate, the application of the
method of apportionment, the classification of Parc
els or any definition applicable to the
CFD so long as such clarification does not material
ly affect the levy and collection of the
Special Tax.
I. PREPAYMENT
The Special Taxes may not be prepaid.
TERM OF THE SPECIAL TAX
The Special Tax shall be levied annually in perpetu
ity unless terminated earlier by the
City. If the Special Tax ceases to be levied, the C
FD Administrator shall direct the County
Recorder to record a Notice of Cessation of Special
Tax. Such notice will state that the
obligation to pay the Special Tax has ceased and th
at the lien imposed by the Notice of
Special Tax Lien is extinguished
Exhibit “D”
Proposed Boundary-City of Highland Community Facili
ties District No. PS 26-001
(Citywide Public Safety Services)
PROPOSED BOUNDARY OF
CITY OF HIGHLAND
COMMUNITY FACILITIES DISTRICT NO. PS 26-001
(CITYWIDE PUBLIC SAFETY SERVICES)
COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA
N
No Scale
600 B St #2000, San Diego, CA 92101 p: 619.236.1778 ext. 1261 www.WeAreHarris.com
THE LINES AND DIMENSIONS OF EACH LOT OR PARCEL SHOWN ON THIS MAP SHALL BE THOSE LINES AND DIMENSIONS AS SHOWN ON THE RIVERSIDE COUNTY ASSESSOR’S MAPS.
Special Tax Boundary
Parcel Boundary
Legend
ASSESSOR PARCEL NUMBER LOCATED
WITHIN PROPOSED BOUNDARIES OF
CFD NO. PS 26-001 (CITYWIDE PUBLIC
SAFETY SERVICES) AS OF
FISCAL YEAR 2026-27
1192-361-45-0-000
1192-361-47-0-000
1192-341-11-0-000
CLERK'S MAP STATEMENT
FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF
HIGHLAND THIS DAY OF , 2026.
CITY CLERK OF THE CITY OF HIGHLAND
CLERK'S MAP STATEMENT
I HEREBY CERTIFY THAT THE AREA SHOWN ON THIS MAP
OF THE PROPOSED BOUNDARY OF COMMUNITY
FACILITIES DISTRICT NO. PS 26-001 (CITYWIDE PUBLIC
SAFETY SERVICES), CITY OF HIGHLAND, COUNTY OF SAN
BERNARDINO, STATE OF CALIFORNIA, WAS APPROVED BY
THE CITY COUNCIL OF THE CITY OF HIGHLAND AT A
REGULARLY SCHEDULED MEETING THEREOF, HELD ON
THE DAY OF , 2026
BY ITS RESOLUTION NO. .
CITY CLERK OF THE CITY OF HIGHLAND
COUNTY RECORDER'S FILING STATEMENT
THIS MAP HAS BEEN FILED UNDER DOCUMENT NUMBER
THIS DAY OF
, 2026 AT .M. IN BOOK
OF MAPS OF ASSESSMENT AND COMMUNITY
FACILITIES DISTRICTS AT PAGE , IN THE OFFICE OF
THE COUNTY RECORDER IN SAN BERNARDINO COUNTY,
STATE OF CALIFORNIA, AT THE REQUEST OF THE CITY OF
HIGHLAND IN THE AMOUNT OF $ .
JOSIE GONZALES
ASSESSOR-RECORDER
SAN BERNARDINO COUNTY
BY:
DEPUTY
FILE:
1192-341-11-0000
1192-361-45-00001192-361-47-0000
CENTRAL AVE
BRUCE ST
CREST ST
Exhibit “E”
Future Annexation Area
PROPOSED BOUNDARY OF FUTURE ANNEXATION AREA OF
CITY OF HIGHLAND
COMMUNITY FACILITIES DISTRICT NO. PS 26-001
(CITYWIDE PUBLIC SAFETY SERVICES)
COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA
N
No Scale
600 B St #2000, San Diego, CA 92101 p: 619.236.1778 ext. 1261 www.WeAreHarris.com
CLERK'S MAP STATEMENT
FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF
HIGHLAND THIS DAY OF , 2026.
CITY CLERK OF THE CITY OF HIGHLAND
CLERK'S MAP STATEMENT
I HEREBY CERTIFY THAT THE AREA SHOWN ON THIS MAP
OF THE PROPOSED BOUNDARY OF FUTURE ANNEXATION
AREA OF COMMUNITY FACILITIES DISTRICT NO. PS 26-001
(CITYWIDE PUBLIC SAFETY SERVICES), CITY OF
HIGHLAND, COUNTY OF SAN BERNARDINO, STATE OF
CALIFORNIA, WAS APPROVED BY THE CITY COUNCIL OF
THE CITY OF HIGHLAND AT A REGULARLY SCHEDULED
MEETING THEREOF, HELD ON THE DAY OF
, 2026 BY ITS RESOLUTION
NO. .
CITY CLERK OF THE CITY OF HIGHLAND
COUNTY RECORDER'S FILING STATEMENT
THIS MAP HAS BEEN FILED UNDER DOCUMENT NUMBER
THIS DAY OF
, 2026 AT .M. IN BOOK
OF MAPS OF ASSESSMENT AND COMMUNITY
FACILITIES DISTRICTS AT PAGE , IN THE OFFICE OF
THE COUNTY RECORDER IN SAN BERNARDINO COUNTY,
STATE OF CALIFORNIA, AT THE REQUEST OF THE CITY OF
HIGHLAND IN THE AMOUNT OF $ .
JOSIE GONZALES
ASSESSOR-RECORDER
SAN BERNARDINO COUNTY
BY:
DEPUTY
FILE:
THE LINES AND DIMENSIONS OF EACH LOT OR PARCEL SHOWN ON THIS MAP SHALL BE THOSE LINES AND DIMENSIONS AS SHOWN ON THE RIVERSIDE COUNTY ASSESSOR’S MAPS.
VICINITY MAP
NOT TO SCALE
Legend
Future Annexation Area
and City Boundary
Attachment 2
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
CITY OF HIGHLAND COMMUNITY FACILITIES DISTRICT NO.
PS 26-001
(CITYWIDE PUBLIC SAFETY SERVICES)
OF THE CITY OF HIGHLAND, COUNTY OF SAN BERNARDINO
STATE OF CALIFORNIA
A Special Tax (all capitalized terms are defined in
Section A., “Definitions”, below) shall
be applicable to each Parcel of Taxable Property lo
cated within the boundaries of City of
Highland Community Facilities District No. PS 26-00
1 (Citywide Public Safety Services).
The amount of Special Tax to be levied on a Parcel
in each Fiscal Year, commencing in
Fiscal Year 2026-2027, shall be determined by the C
ity Council of the City of Highland,
acting in its capacity as the legislative body of t
he CFD by applying the appropriate Special
Tax as set forth in Sections B., C., and D., below.
All of the real property within the CFD,
unless exempted by law or by the provisions of Sect
ion F. below, shall be taxed for the
purposes, to the extent and in the manner herein pr
ovided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“
Accessory Dwelling Unit(s)
” or
“ADU”
means a secondary attached or detached
Residential Dwelling Unit with complete independent
living facilities for one or more
persons. The ADU may be on the same Assessor’s Parc
el as the Single Family Residential
Property’s primary Residential Dwelling Unit or on
a separate Assessor’s Parcel. For
purposes of clarification, where an ADU and primary
Residential Dwelling Unit are on the
same Assessor’s Parcel, the ADU located on such Ass
essor’s Parcel is considered one
additional Residential Dwelling Unit for purposes o
f calculating the Special Tax. Should an
Assessor’s Parcel contain only an ADU, such Assesso
r’s Parcel will be taxed as a single
Residential Dwelling Unit only.
“Acre”
or
“Acreage”
means the land area of a Parcel as indicated on the
most recent
Assessor’s Parcel Map, or if the land area is not s
hown on the Assessor’s Parcel Map,
the land area shown on the applicable Final Map, co
ndominium plan, or other recorded
County map or the land area calculated to the reaso
nable satisfaction of the Administrator
using the boundaries set forth on such map or plan.
The square footage of a Parcel is
equal to the Acreage of such Parcel multiplied by 4
3,560.
“Act”
means the Mello-Roos Community Facilities Act of 19
82, as amended, being
Chapter 2.5 of Part 1 of Division 2 of Title 5 of t
he Government Code of the State of
California.
“Administrative Expenses”
means ongoing annual costs of operating and managin
g
the CFD after it has been formed. These include all
actual or reasonably estimated costs
and expenses incurred by the City that are chargeab
le or allocable to carry out its duties
as the administrator of the CFD as allowed by the A
ct, which shall include without
limitation, all costs and expenses arising out of o
r resulting from the annual levy and
collection of the Special Tax (whether by the City
or designee thereof or both), any
litigation or appeal involving the CFD, and other a
dministrative expenses of the City or
designee thereof, or both, directly related to the CFD. Administrative Expenses shall also include amounts estimated or advanced by the City.
“Administrator”
means an official of the City, or designee thereof,
responsible for
determining the annual amount of the levy and colle
ction of the Special Taxes.
“Approved Property”
means all Parcels of Taxable Property: (i) that are
included in a
Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have
not been issued a Building Permit prior
to the April 1st preceding the Fiscal Year in which the Special Tax is being levied. “Assessor”
means the Assessor of the County .
“Assessor’s Parcel Map”
means an official map of the Assessor of the County
designating Parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number”
means the number assigned to a Parcel for purposes
of
identification as determined from an Assessor Parce
l Map or the applicable assessment
roll.
“Base Year”
means the Fiscal Year ending June 30, 2027. Rates i
n this Rate and Method
of Apportionment for the initial formation are base
d on FY 2026-27 costs, which will be
escalated beginning in FY 2027-28. The Base Year fo
r future annexations shall be the
fiscal year the annexation is approved by the City
Council.
“Boundary Map”
means a recorded map of the CFD which indicates by
a boundary
line the extent of the territory identified to be s
ubject to the levy of Special Taxes, as
may be amended due to future annexations of territo
ry to the CFD.
"Building Permit"
means the first legal document issued by a local ag
ency giving official
permission for new construction.
"Building Square Footage"
or
“BSF”
means the floor area square footage reflected on
the original construction building permit issued fo
r construction of a building on Non -
Residential Property and any Building Square Footag e subsequently added to a building of such Non -Residential Property after issuance of a building p ermit for expansion or renovation of such building.
“Business Park Property”
means Business Park land use as defined in the City
of
Highland General Plan, as amended from time to time
. If the development is subject to a
Specific Plan, Development Agreement, or other over
riding legal instrument that deviates
from the General Plan, the definitions in that docu
ment shall be the authorized definition.
“Calendar Year”
means the twelve month period from January 1st thr
ough December
31st of the same year.
“CFD”
or
“CFD PS 26-001”
means City of Highland Community Facilities Distric
t No. PS
26-001 (Citywide Public Safety Services).
“City” means the City of Highland, California.
“City Council”
means the City Council of the City acting as the le
gislative body of the
CFD.
“Commercial Property”
means Commercial land use as defined in the City of
Highland
General Plan, as amended from time to time. If the
development is subject to a Specific
Plan, Development Agreement or other overriding leg
al instrument that deviates from the
General Plan, the definitions in that document shal
l be the authorized definition.
“Condominium Residential Property”
means all Parcels of Developed Property or
Approved Property with an approved land use for res
idential condominiums (two or more
attached units which can each be owned individually
). Parcels that are open space,
recreation, clubhouse, etc., owned by a condominium
association, homeowner’s
association, or property owner’s association, are E
xempt Property.
“Consumer Price Index”
means the Consumer Price Index published by the U.S
.
Department of Labor, Bureau of Labor Statistics for
“All Urban Consumers in the Riverside-
San Bernardino-Ontario Area”, measured as of the mo
nth of March in the Calendar Year
which ends in the previous Fiscal Year. In the even
t this index ceases to be published, the
Consumer Price Index shall be another index as dete
rmined by the Administrator that is
reasonably comparable to the Consumer Price Index f
or the Riverside-San Bernardino-
Ontario Area.
“County”
means the County of San Bernardino, California.
“Developed Property”
means all Parcels of Taxable Property for which a B
uilding Permit
for new construction has been issued prior to April
1 st preceding the Fiscal Year in which
the Special Tax is being levied.
“Exempt Property”
means any Parcel which is exempt from Special Taxes
pursuant to
Section F., below.
“Final Map”
means the survey-based map prepared by a registered
civil engineer or
licensed land surveyor, approved by the local agenc
y and recorded in the office of the
County Recorder, which legally subdivides land and
establishes the lots, rights-of-way,
easements, and dedications depicted thereon in acco
rdance with the California
Subdivision Map Act (California Government Code Sec
tion 66410
et seq
.) or recordation
of a condominium plan pursuant to California Civil
Code 1352 that creates individual lots
for which Building Permits may be issued without fu
rther subdivision
“Fiscal Year”
or
“FY”
means the 12-month period starting on July 1 of an
y Calendar
Year and ending the following June 30.
“Future Annexation Area”
means the geographic area that, at the time of CFD
formation, was considered potential annexation area
for the CFD and which was,
therefore, identified as “future annexation area” o
n the recorded Boundary Map. Such
designation does not mean that any or all of the Fu ture Annexation Area will annex into the CFD but should the owner or owners of property
designated as Future Annexation
Area choose to annex, the annexation may be process
ed pursuant to the annexation
procedures in the Act for territory included in the
Future Annexation Area.
“Historic Village District Property” or “HVD”
means Historic Village District land use
as defined in the City of Highland General Plan, as
amended from time to time. If the
development is subject to a Specific Plan, Developm
ent Agreement or other overriding
legal instrument that deviates from the General Pla
n, the definitions in that document shall
be the authorized definition.
“Incidental Expenses”
means the broader category of expenses, authorized
by the Act,
incurred in connection with the formation of the CF
D, determination of the amount of the
Special Tax, collection of the Special Tax, payment
of the Special Tax and costs incurred
in order to carry out the authorized purposes of th
e CFD.
“Industrial Property”
means Light Industrial land use as defined in the C
ity of Highland
General Plan, as amended from time to time. If the
development is subject to a Specific
Plan, Development Agreement, or other overriding le
gal instrument that deviates from the
General Plan, the definitions in that document shal
l be the authorized definition.
“Land Use Class”
means any of the classes listed in Table 1 or Table
2 of Section C.
“Maximum Special Tax”
means for each Parcel in each Fiscal Year, the grea
test amount
of Special Tax, determined in accordance with Secti
on C., below, which may be levied on
such Parcel in such Fiscal Year.
“Mixed Use Property”
means all Parcels of Developed Property and Approve
d Property
with more than one land use including Residential U
se, commercial, retail, or other land
uses, as defined in the City of Highland General Pl
an, as amended from time to time. If the
development is subject to a Specific Plan, Developm
ent Agreement or other overriding legal
instrument that deviates from the General Plan, the
definitions in that document shall be the
authorized definition. If a Parcel contains both Re
sidential and Non-Residential Uses, each
use shall be classified separately by the Administr
ator, and the applicable Maximum Special
Tax shall be calculated for each use in accordance
with Section C. The total Special Tax
levied on the Parcel shall be the sum of the taxes
applicable to each use.
“Multifamily Residential Property
” means all Parcels of Developed Property and
Approved Property with Multifamily Residential land
uses as defined in the City of Highland
General Plan, as amended from time to time, and con
sisting of a building or buildings
comprised of attached Dwelling Units available for
rent, not for sale to an end user, and
under common management. If the development is subj
ect to a Specific Plan,
Development Agreement or other overriding legal ins
trument that deviates from the
General Plan, the definitions in that document shal
l be the authorized definition.
“Non-Residential Use”
means a use of property that is not Residential.
“Non-Residential Property” means all Parcels of Developed Property that are no t Residential Property, including Commercial Property
, Office Professional Property,
Business Park Property, Industrial Property, Histor
ic Village District Property, and the
Non-Residential Use portion of Mixed Use Property,
as determined by the Administrator.
“Office Professional Property”
means Office Professional land use as defined in th
e
City of Highland General Plan, as amended from time
to time. If the development is
subject to a Specific Plan, Development Agreement o
r other overriding legal instrument
that deviates from the General Plan, the definition
s in that document shall be the
authorized definition.
“Parcel(s)”
means a lot or parcel within the CFD shown on an As
sessor’s Parcel Map
with an assigned Assessor’s Parcel Number valid as
of July 1 st for the Fiscal Year for
which the Special Tax is being levied.
“Property Owner’s Association Property”
means all Parcels which have been conveyed,
dedicated to, or irrevocably offered for dedication
to a property owner association , including
any master or sub-association, prior to April 1 st preceding the Fiscal Year in which the Special Tax is being levied. The Special Tax shall
not be levied on Property Owner’s
Association Property.
“Proportionately”
means for Parcels of Taxable Property that are (i)
Residential Property,
that the ratio of the actual Special Tax to the Max
imum Special Tax is the same for all
Parcels of Residential Property; (ii) Non-Residenti
al Property, that the ratio of the actual
Special Tax to the Maximum Special Tax is the same
for all Parcels of Non-Residential
Property; and (iii) Approved Property, that the rat
io of the actual Special Tax to the
Maximum Special Tax is the same for all Parcels of
Approved Property.
“Public Property”
means all Parcels which, as of April 1 st preceding the Fiscal Year in which the Special Tax is being levied, are (i) used
for rights-of-way or any other purpose
and are owned by, dedicated to, or irrevocably offe
red for dedication to the federal
government, the State, the County, City or any othe
r public agency, provided, however,
that any property leased by a public agency to a pr
ivate entity and subject to taxation
under Section 53340.1 of the Act shall be taxed and
classified according to its use; or (ii)
encumbered by an unmanned utility easement making i
mpractical its utilization for other
than the purpose set forth in the easement.
“Residential Dwelling Unit”
or
"RDU"
means a residential unit that is used or intended
to be used as a domicile by one or more persons, as
determined by the Administrator,
which includes Single Family Residential Property,
Multifamily Residential Property,
Condominium Residential Property, Mixed Use Propert
y and an Accessory Dwelling Unit.
“Residential Property”
means all Parcels of Developed Property that have b
een issued
a Building Permit for one or more Residential Dwell
ing Units, including Single Family
Residential Property, Multifamily Residential Prope
rty, Condominium Residential Property,
Mixed Use Property containing Residential Dwelling
Units, and Accessory Dwelling Units,
as determined by the Administrator. If a Parcel con
tains both Residential and Non-
Residential Uses, the residential portion shall be classified and taxed in accordance with this Rate and Method of Apportionment.
“Residential Use”
has the same definition as the term is defined in
Section 16.06.180 of
the Highland Municipal Code, as amended from time t
o time.
“Single Family Residential Property”
means all Single Family land uses as defined in
the City of Highland General Plan, as amended from
time to time, and excluding
Multifamily Residential Property. If the developmen
t is subject to a Specific Plan,
Development Agreement or other overriding legal ins
trument that deviates from the
General Plan, the definitions in that document shal
l be the authorized definition.
“Special Tax(es)”
means the Special Tax to be levied in each Fiscal Y
ear on each Parcel
of Taxable Property in accordance with Sections C.
and D.
“Special Tax Requirement”
means for each Fiscal Year, that amount required to
pay the
estimated cost of Special Tax Services for such Fis
cal Year as determined by the City,
including Administrative Expenses and Incidental Ex
penses less a credit for funds available
to reduce the annual Special Tax levy as determined
by the Administrator.
“
Special Tax Services”
means police protection, fire protection and suppre
ssion, and
ambulance and paramedic services.
“State”
means the State of California.
“Taxable Property”
means all Parcels within the boundary of the CFD pu
rsuant to the
Boundary Map which are not exempt from the Special
Tax pursuant to Section F., below.
“Taxable Unit”
means either a Residential Dwelling Unit, Building
Square Footage, or
Parcel, as shown in Table 1 and Table 2.
“Undeveloped Property”
means all Parcels not classified as Developed Prope
rty,
Approved Property, Public Property, Property Owner’
s Association Property or open
space, recreation, clubhouse, etc., owned by a cond
ominium association or homeowner’s
association within the CFD.
B. CLASSIFICATION OF PROPERTY
Each Fiscal Year, commencing with Fiscal Year 2026- 2027, all Parcels of Property shall be classified as either Taxable Property or Exempt
Property. Taxable Property shall be
further classified as Developed Property or Approve
d Property and be subject to the levy
of Special Taxes in accordance with this Rate and M
ethod of Apportionment as
determined pursuant to Sections C. and D.
Parcels of Developed Property shall further be clas
sified as Residential Property or Non-
Residential Property. Non-Residential Property shal
l be further classified by the
Administrator as Commercial Property, Mixed Use Pro
perty, Historic Village District
Property, Office Professional Property, Business Pa rk Property or Industrial Property. The Administrator shall also determine the number of Re
sidential Dwelling Units and the
Building Square Footage applicable to each Parcel.
C. MAXIMUM SPECIAL TAX RATES
For each Fiscal Year commencing Fiscal Year 2026-20 27, Maximum Special Tax Rates shall be determined as described below:
For purposes of determining the applicable Maximum
Special Tax for Assessor’s Parcels
of Developed Property and Approved Property which a
re classified as Residential
Property, all such Assessor’s Parcels shall be assi
gned the number of RDUs constructed
or to be constructed thereon as specified in or sho
wn on the Building Permit(s) issued or
Final Map as determined by the Administrator. Once
a Residential Property building or
buildings have been built on an Assessor's Parcel,
the Administrator shall determine the
actual number of RDUs contained within the building
or buildings, and the Special Tax
levied against the Assessor’s Parcel in the next Fi
scal Year shall be calculated by
multiplying the actual number of RDUs by the Maximu
m Special Tax per RDU. For
purposes of determining the applicable Maximum Spec
ial Tax for Assessor’s Parcels of
Developed Property and Approved Property which are
classified as Non-Residential
Property, the Administrator shall determine the Bui
lding Square Footage from the
applicable Building Permit(s), approved building pl
ans, certificate of occupancy, County
Assessor records, or other records deemed reliable
by the Administrator. Once the
Administrator determines the actual quantity of Bui
lding Square Feet for the Assessor’s
Parcels, the Special Tax levied against the Assesso
r’s Parcel in the next Fiscal Year shall
be calculated by multiplying the quantity of Buildi
ng Square Feet by the Maximum Special
Tax per Taxable Unit identified in the Tables below
.
1. Developed Property
The Maximum Special Tax for each Assessor’s Parcel
of Developed Property for
Fiscal Year 2026 ‐27 is identified in Table 1 below. These Maximum Sp ecial Tax Rates are subject to annual escalation, as explaine
d further in Section C. 1. (a)
below.
TABLE 1
Maximum Special Tax Rates for Developed Property
Fiscal Year 2026-2027
Land
Use
Class
Description Taxable Unit
Maximum Special Tax
per Taxable
Unit
1 Residential Property Residential Dwelling Unit $ 310.00 2 Commercial Property Building Square Footage $0.14
3 Mixed Use Property Building Square Footage $0.13
4 Historic Village District Property Building Square Footage $0.12 5 Office Professional Property Building Square Foot age $0.11 6 Business Park Property Building Square Footage $0 .10 7 Industrial Property Building Square Footage $0.06
(a) Increase in the Maximum Special Tax
On each July 1 following the Base Year, the Maximum Special Tax, identified in Table 1 above, shall be increased annually, commenc
ing July 1, 2027, based on
the percentage increase in the Consumer Price Index
with a maximum annual
increase of six percent (6%) and a minimum annual i
ncrease of two percent (2%)
of the Maximum Special Tax in effect in the previou
s Fiscal Year.
(b) Multiple Land Use Classes
In some instances, a Parcel of Developed Property m ay contain more than one Land Use Class. The Maximum Special Tax that may be levi
ed on such Parcel shall be the
sum of the Maximum Special Tax that can be levied f
or each Land Use Class located
on that Parcel. The Maximum Special Tax Rate for Re
sidential Property shall apply
to any Residential Dwelling Units on the parcel. Th
e Maximum Special Tax Rate for
Commercial Property, Mixed Use Property, Historic V
illage District Property, Office
Professional Property, Business Park Property, and
Industrial Property shall apply to
the Building Square Feet of those land uses on the
property.
2. Approved Property
The Maximum Special Tax for each Assessor’s Parcel
of Approved Property for
Fiscal Year 2026 ‐27 is identified in Table 2 below. These Maximum Sp ecial Tax Rates are subject to annual escalation, as explaine
d further in Section C. 2. (a)
below.
TABLE 2
Maximum Special Tax Rates for Approved Property
Fiscal Year 2026-2027
Land Use Class Taxable Unit
Maximum
Special Tax
per Taxable
Unit
Approved Property Parcel $ 110.00
(a) Increase in the Maximum Special Tax
On each July 1, following the Base Year, the Maximu m Special Tax, identified in Table 2, above, shall be increased annually, commen
cing July 1, 2027, based on
the percentage increase in the Consumer Price Index
with a maximum annual
increase of six percent (6%) and a minimum annual i
ncrease of two percent (2%)
of the Maximum Special Tax in effect in the previou
s Fiscal Year.
3. Property Not Subject to the Special Tax
No Special Tax shall be levied on Exempt Property.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2026-2027 and for each following Fiscal Year, the Administrator shall levy the Special Tax on all Tax
able Property until the amount
of Special Tax equals the Special Tax Requirement i
n accordance with the
following steps:
First: The Special Tax shall be levied Proportionat
ely on each Parcel of Developed
Property at up to 100% of the applicable Maximum Sp ecial Tax as needed to satisfy the Special Tax Requirement; and
Second: If additional moneys are needed to satisfy
the Special Tax Requirement
after the first step has been completed, the Specia l Tax shall be levied Proportionately on each Parcel of Approved Property
at up to 100% of the
Maximum Special Tax for Approved Property.
E. FUTURE ANNEXATIONS
It is anticipated that properties in the Future An nexation Area will be annexed to the CFD from time to time. The Base Year for each annexatio
n shall be the Fiscal Year in which the
annexation is approved by the City Council. The Max
imum Special Tax applicable to the
annexed territory shall be established based on the rates in effect for that Fiscal Year and shall thereafter be escalated as explained in Secti
on C.1.(a) and Section C.2.(a).
F. EXEMPTIONS
The CFD shall not levy Special Taxes on Undeveloped Property, Public Property, Property Owner’s Association Property, open space,
recreation, clubhouse, etc, owned
by a condominium association or homeowner’s associa
tion within the CFD and property
covered under Sections 54317.3 and 53317.5 of the A
ct. If any Undeveloped Property,
Public Property, or Property Owner’s Association Pr
operty is converted to Taxable
Property as the result of a sale or transfer of an
Exempt Parcel to a private owner for
Residential Use or Non-Residential use, it shall be
come subject to the Special Tax in
accordance with this Rate and Method of Apportionme
nt as determined pursuant to
Sections C. and D. The CFD shall not levy Special T
axes on a Parcel that receives a
welfare exemption under subdivision (g) of Section
214 of the Revenue and Taxation
Code unless debt is outstanding and the Parcel was
subject to the special tax prior to
receiving the exemption, in which case the Parcel s
hall remain subject to the Special Tax
and the Special Tax shall be enforceable against th
e Parcel.
G. MANNER OF COLLECTION
The Special Tax shall be collected in the same mann er and at the same time as ordinary ad valorem
property taxes and shall be subject to the same pen
alties, the same
procedure, sale and lien priority in the case of de
linquency; provided, however, that the
Administrator may directly bill the Special Tax and
may collect Special Taxes at a different
time or in a different manner if necessary to meet
the financial obligations of the CFD or
as otherwise determined appropriate by the Administ
rator.
H. APPEALS
Any taxpayer who believes that the Special Tax levi ed on their Parcel(s) is in error may file a written appeal of the Special Tax on his/her
Parcel(s) with the Administrator no later
than April 10 of the Fiscal Year in which the levy
occurred, provided that the appellant is
current in his/her payments of Special Taxes. The a
ppeal must clearly specify the grounds
upon which the taxpayer believes the Special Tax is
erroneous. During the pendency of
an appeal, all Special Taxes must be paid on or bef
ore the payment due date established
when the levy was made. The appeal must specify the
reasons why the appellant claims
the Special Tax is in error. The Administrator shal
l review the appeal, meet with the
appellant if the Administrator deems necessary, and
advise the appellant of its
determination. If the Administrator agrees with the
appellant, the Administrator shall grant
a credit to eliminate or reduce future Special Taxe
s on the appellant’s Parcel(s). No
refunds of previously paid Special Taxes shall be m
ade. The Administrator’s decision is
final and binding.
Interpretation of this Rate and Method of Apportion ment may be made by the Administrator or by resolution of the City Council
for purposes of clarifying any vagueness
or uncertainty as it relates to the application of
the Special Tax rate, the application of the
method of apportionment, the classification of Parc
els or any definition applicable to the
CFD so long as such clarification does not material
ly affect the levy and collection of the
Special Tax.
I. PREPAYMENT
The Special Taxes may not be prepaid.
TERM OF THE SPECIAL TAX
The Special Tax shall be levied annually in perpetu
ity unless terminated earlier by the
City. If the Special Tax ceases to be levied, the C
FD Administrator shall direct the County
Recorder to record a Notice of Cessation of Special
Tax. Such notice will state that the
obligation to pay the Special Tax has ceased and th
at the lien imposed by the Notice of
Special Tax Lien is extinguished