CITY OF PATTERSON
COMMUNITY FACILITIES DISTRICT NO. 2018-02
(Residential Maintenance Services)
RATE AND METHOD OF APPORTIONMENT
TAX ZONE NO. 6
The Special Tax shall be levied in Tax Zone No. 6 in accordance with the Rate and Method of Apportionment of Special Tax for City of Patterson Community Facilities District No. 2018-02 (Residential Maintenance Services) pursuant to the rate for Tax Zone No. 6 set forth in Attachment No. 1 thereto. The Rate and Method of Apportionment of Special Tax is attached hereto and incorporated herein by this reference.
CITY OF PATTERSON
COMMUNITY FACILITIES DISTRICT NO. 2018-02
(RESIDENTIAL MAINTENANCE SERVICES)
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
A Special Tax shall be levied and collected in City of Patterson Community Facilities District No. 2018-02 (Residential Maintenance Services) (the “District”) each Fiscal Year, in an amount determined by the application of the procedures described below. All of the Taxable Property (as defined below) in the District, unless exempted by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.
I. DEFINITIONS
The terms used herein shall have the following meanings:
“Accessory Unit” means a secondary residential unit of limited size (e.g., granny cottage, second unit) that shares a Parcel with a Unit of Single Family Detached Property. “Acreage” or “Acre” means that acreage shown on the Assessor’s Parcel Map or in the Assessor’s Data for each Assessor’s Parcel. In the event that the Assessor’s Parcel Map or Assessor’s Data shows no acreage, the Acreage for any Assessor’s Parcel shall be determined by the District Administrator based upon the applicable condominium plan, final map or parcel map. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Act of the State of California. “Administrative Expenses” means the following actual or reasonably estimated costs directly related to the administration of the District: the costs of computing the Annual Special Tax Requirement and the annual Special Tax and of preparing the annual Special Tax collection schedules; the costs of collecting the Special Taxes, including any charges levied by the County Auditor’s Office, Tax Collector’s Office or Treasurer’s Office; the costs of the City or designee in complying with the disclosure requirements of the California Government Code (including the Act), including public inquiries regarding the Special Taxes; the costs of the City or designee related to an appeal of the Special Tax; and the costs of commencing and pursuing to completion any foreclosure action arising from delinquent Special Taxes in the District.
Administrative Expenses shall also include costs related to the formation of the District and of annexing territory to the District as well as any amounts advanced by the City for any administrative purposes of the District and an allocable share of the salaries of City staff and an allocable portion of City overhead costs relating to the foregoing, or costs of the City in any way related to the establishment or administration of the District.
“Affordable Housing Property” means, in any Fiscal Year, all or a portion of any Assessor’s Parcel within the boundaries of CFD No. 2018-2 that is subject to a deed restriction, resale restriction, or regulatory agreement recorded in favor of the City that restricts Unit rents or prices chargeable to lower income households.
“Affordable Multi-Family Property” means Multi-Family Property that is also Affordable Housing Property.
“Affordable Single Family Property” means Single Family Property that is also Affordable Housing Property.
“Annual Services Costs” means the amounts required to fund services authorized to be funded by the District.
“Annual Special Tax Requirement” means that amount with respect to the District determined by the Council or designee as required in any Fiscal Year to pay: (1) the Administrative Expenses, (2) the Annual Services Costs, (3) any amount required to establish or replenish any reserve or replacement fund established in connection with the District, and (4) reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year. “Assessor’s Data” means Acreage or other Parcel information contained in the records of the County Assessor.
“Assessor’s Parcel” or “Parcel” means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means, with respect to an Assessor’s Parcel, that number assigned to such Assessment’s Parcel by the County for purposes of identification. “Boundary Map” means that map recorded with the County recorder’s office on August 28, 2018 in Book 5 at Page 75 as Document Number 2018-0059123-00.
“City” means the City of Patterson, County of Stanislaus. “Council” means the City Council of the City, acting as the legislative body of the District. “County” means the County of Stanislaus, California.
“Developed Property” means, in any Fiscal Year, all Taxable Property in the District for which a building permit for new construction was issued by the City prior to June 1 of the preceding Fiscal Year, but not prior to June 1, 2017.
“District” means the City of Patterson Community Facilities District No. 2018-02 (Residential Maintenance Services).
“District Administrator” means an official of the City, or designee or agent or consultant, responsible for administering the Special Tax in accordance with this Rate and Method of Apportionment. “Exempt Property” means all property located within the boundaries of the District which is exempt from the Special Tax pursuant to Section V below.
“Expected Revenue” means the amount of revenue anticipated to be collected in each Tax Zone, adjusted annually by the Tax Escalation Factor.
“Fiscal Year” means the period from July 1st of any calendar year through June 30th of the following calendar year.
“Future Annexation Area” means the area designated for future annexation to the District as shown in the District boundary map, as may be amended from time to time. “Maximum Special Tax Rate” means the maximum Special Tax authorized for levy in any Fiscal Year that may apply to Taxable Property as described in Section III. “Multi-Family Higher Density Property” means Multi-Family Property built at a density that equals or exceeds 16.0 Units per Net Acre.
“Multi-Family Lower Density Property” means Multi-Family Property built at a density that is less than
16.0 Units per Net Acre.
“Multi-Family Property” means, in any Fiscal Year, all Parcels of Developed Property for which a building permit or use permit has been issued for construction of a residential structure with five or more Units that share a single Assessor’s Parcel Number, are offered for rent to the general public, and cannot be purchased by individual homebuyers.
“Proportionately” means, in any Fiscal Year, that the ratio of the actual Special Tax to the Maximum Special Tax Rate is equal for all Assessor’s Parcels authorized to be levied in that Fiscal Year. “Public Property” means any property within the boundaries of the District owned by, irrevocably offered or dedicated to, or for which an easement for purposes of public or private road right-of-way making the property unusable for any other purpose has been granted to the federal government, the State of California, the County, the City, or any local government or other public agency. “Single Family Attached Property” means, in any Fiscal Year, all Parcels of Developed Property for which a building permit or use permit was issued for construction of a residential structure consisting of two or more Units that share common walls, have separate Assessor’s Parcel Numbers assigned to them (except for a duplex triplex, or fourplex unit, which may share a Parcel with another duplex, triplex or fourplex Unit(s)), and may be purchased by individual homebuyers (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.
“Single Family Detached Property” means, in any Fiscal Year, all Parcels of Developed Property for which a building permit was issued for construction of a Unit that does not share a common wall with another Unit.
“Special Tax” means the amount levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Annual Special Tax Requirement.
“Tax Escalation Factor” means a factor of 3 percent that will be applied annually after Fiscal Year 2018/19 to increase the Maximum Special Tax Rates shown in Section III. “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 of the Taxable Property within the District at the time of its formation is within a Tax Zone as specified on the District Boundary Map. Additional Tax Zones may be created when property is annexed to the District, and a separate Maximum Special Tax shall be identified for property within the new Tax Zone at the time of such annexation. The Assessor’s Parcels included within a new Tax Zone when such Parcels are annexed to the District shall be identified by Assessor’s Parcel number in the Unanimous Approval Form that is signed by the owner(s) of the Parcels at the time of annexation.
“Taxable Property” means all Parcels within the boundary of the District that are not Exempt Property, exempt from the Special Tax pursuant to the Act or Section V below. “Unanimous Approval Form” means that form executed by the record owner of fee title to a Parcel or Parcels of Taxable Property annexed into the District that constitutes the property owners approval and unanimous vote in favor of annexing into the District and the levy of Special Tax against his/her Parcel or Parcels pursuant to this Rate and Method of Apportionment of Special Tax. “Unit” means an individual single family detached or attached home, townhome, condominium, apartment, or other residential dwelling unit, including each separate living area within a half-plex, duplex, triplex, fourplex, or other residential structure. An Accessory Unit that shares a Parcel with a Unit of Single Family Detached Property shall not be considered a separate Unit for purposes of calculating the Special Tax.
II. DETERMINATION OF TAXABLE PARCELS
On or about July 1 of each Fiscal Year, the District Administrator shall determine the valid Assessor’s Parcel Numbers for all Taxable Property within the District. If any Assessor’s Parcel Numbers are no longer valid from the previous Fiscal Year, the District Administrator shall determine the new Assessor’s Parcel Number or Numbers that are in effect for the current Fiscal Year. To the extent a Parcel or Parcels of Taxable Property are subdivided, consolidated or otherwise reconfigured, the Special Tax rates shall be assigned to the new Assessor’s Parcels pursuant to Section III. The District Administrator shall also determine: (i) the Tax Zone within which each Parcel is located; (ii) which Parcels are Developed Property; (iii) the number of Units each Parcel contains; and (iv) the Annual Special Tax Requirement for the Fiscal Year.
III. ANNUAL SPECIAL TAX - METHOD OF APPORTIONMENT
All Taxable Property shall be subject to a Special Tax defined as follows.
The Special Tax shall be levied each Fiscal Year by the District Administrator. The Annual Special Tax Requirement shall be apportioned to each Parcel of Developed Property within the District by the method shown below.
First. Determine the Annual Special Tax Requirement.
Second. Levy the Special Tax on each Parcel of Developed Property, Proportionately, up to the Maximum Special Tax Rate described in the tables below to satisfy the Annual Special Tax Requirement.
TABLE 1
SPECIAL TAX RATES – TAX ZONE NO. 1
FISCAL YEAR 2018/19*
Property Type Special Tax Rate Per Expected Units
Single Family Detached Property $1,967.20 Unit 0
Single Family Attached Property 1,257.92 Unit 0
Multi-Family Lower Density Property 897.90 Unit 0
Multi-Family Higher Density Property 724.60 Unit 0
Affordable Single Family Property 651.10 Unit 120
Affordable Multi-Family Property 467.32 Unit 138
*On each July 1, commencing on July 1, 2019, the Maximum Special Tax Rate for each Tax Zone shall be increased by 3%, the Tax Escalation Factor.
TABLE 2
SPECIAL TAX RATES – TAX ZONE NO. 2
FISCAL YEAR 2018/19*
Property Type Special Tax Rate Per Expected Units
Single Family Detached Property $847.52 Unit 98
Single Family Attached Property 584.10 Unit 0
Multi-Family Lower Density Property 421.48 Unit 0
Multi-Family Higher Density Property 357.12 Unit 0
Affordable Single Family Property 321.02 Unit 0
Affordable Multi-Family Property 254.66 Unit 0
*On each July 1, commencing on July 1, 2019, the Maximum Special Tax Rate for each Tax Zone shall be increased by 3%, the Tax Escalation Factor.
TABLE 3
SPECIAL TAX RATES – TAX ZONE NO. 3
FISCAL YEAR 2018/19*
Property Type Special Tax Rate Per Expected Units
Single Family Detached Property $792.60 Unit 256
Single Family Attached Property 551.06 Unit 0
Multi-Family Lower Density Property 398.11 Unit 0
Multi-Family Higher Density Property 339.08 Unit 0
Affordable Single Family Property 304.66 Unit 0
Affordable Multi-Family Property 243.98 Unit 0
*On each July 1, commencing on July 1, 2019, the Maximum Special Tax Rate for each Tax Zone shall be increased by 3%, the Tax Escalation Factor.
A different Maximum Special Tax Rate may be identified in Tax Zones added to the District as a result of future annexations.
In some instances, an Assessor’s Parcel of Developed Property may contain more than one type of property. The Maximum Special Taxes levied on an Assessor’s Parcel shall be the sum of the Maximum Special Taxes for all Units located on that Assessor’s Parcel.
IV. FORMULA FOR PREPAYMENT OF SPECIAL TAX OBLIGATIONS
The Special Tax may not be prepaid.
V. EXEMPTIONS
Notwithstanding any other provision of this Rate and Method of Apportionment of Special Tax, no Special Taxes shall be levied on Public Property, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act.
VI. INTERPRETATION OF RATE AND METHOD OF APPORTIONMENT
The City reserves the right to make minor administrative and technical changes to this document that do not materially affect the rate and method of apportioning the Special Tax. In addition, the interpretation and application of any section of this document shall be at the City’s discretion. Interpretations may be made by the City by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment of Special Tax.
VII. MANNER AND DURATION OF SPECIAL TAX
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided that the City may directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner if needed to meet the financial obligations of the District, and may collect delinquent Special Taxes through foreclosure or other available methods.
A Special Tax shall continue to be levied and collected within the District, as needed to fund the Annual Special Tax Requirement, in perpetuity.
VIII. APPEAL OF SPECIAL TAX LEVY
Any property owner may file a written appeal of the Special Tax with the District Administrator claiming that the amount or application of the Special Tax is not correct. The appeal must be filed not later than one calendar year after having paid the Special Taxesthat are disputed, and the appellant must be current in all payments of Special Taxes. In addition, during the term of the appeal process, all Special Taxes levied must be paid on or before the payment date established when the levy was made.
The appeal must specify the reasons why the appellant claims the Special Taxes are in error. The District Administrator shall review the appeal, meet with the appellant if the District Administrator deems necessary, and advise the appellant of its determination.
If the property owner disagrees with the District Administrator’s decision relative to the appeal, the owner may then file a written appeal with the City Council whose subsequent decision shall be final and binding on all interested parties. If the decision of the District Administrator or subsequent decision by the City Council requires the Special Taxes to be modified or changed in favor of the property owner, no cash refund shall be made for prior years’ Special Taxes, but an adjustment shall be made to credit future Special Taxes.
This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to filing any legal action by such owner.
CITY OF PATTERSON
COMMUNITY FACILITIES DISTRICT NO. 2018-02
(RESIDENTIAL MAINTENANCE SERVICES)
ATTACHMENT 1
MAXIMUM SPECIAL TAX RATES
Tax
Zone
APNs Property Type Special Tax
Rate
Per Expected
Units
Base
Year
4 047-031-012 Single Family
Detached Property $919.81 Unit 52 2021/22
5 047-031-013 Single Family
Detached Property $898.19 Unit 52 2021/22
6 021-098-002, 021-098-003,
021-098-004, 021-098-007,
021-098-008, 021-098-009
Single Family
Detached Property $1,256.76 Unit 451 2023/24
On each July 1, commencing on the July 1 after the Base Year shown above, the Maximum Special Tax Rate for each Tax Zone shall be increased by 3%, the Tax Escalation Factor.