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EXHIBIT D - RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
CITY OF PLACENTIA
Community Facilities District No. 2018-01
(TOD Area Maintenance)
A Special Tax authorized under the Mello -Roos Community Facilities Act of 1982 applicable to the land in the Community Facilities District No. 2018-01 (the "CFD") of the City of Placentia (the "City") shall be levied and collected according to the tax liability determined by the City through the application of the appropriate amount or rate described herein.
A. DEFINITIONS
"Acre" means each acre of the land area making up an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable Final Map or other recorded County 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 Code of the State of California. "Administrative Expenses" means the actual or estimated costs incurred by the City to determine, levy and collect the Special Taxes, including the proportionate amount of the salaries and benefits of City employees whose duties are directly related to administration of the CFD and the fees of Special Tax levy administrator, other consultants, legal counsel, the costs of collecting installments of the Special Taxes upon the County tax rolls and any other incidental costs authorized by the Act. "Annexation Parcel" means any Parcel that is annexed to the CFD after it is formed. "Annual Escalation Factor" means an amount equal to the percentage increase during the preceding year in the Consumer Price Index for All Urban Consumers in the Los Angeles -Riverside -Orange County metropolitan area (CPI -U), as published by the U.S. Department of Labor, Bureau of Labor Statistics, (or if this index ceases publication, an equivalent index ), or 3 percent, whichever is greater. "Assessor's Parcel" or "Parcel" means a lot or parcel shown on an Assessor's Parcel Map with an assigned Assessor's Parcel number.
"Assessor's Parcel Number" means, with respect to an Assessor's Parcel, that number assigned to such Assessor's Parcel by the County for purposes of identification.
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"Annual Special Tax" means the annual Special Tax, determined in accordance with Section D below to be levied in the CFD in any Fiscal Year on any Assessor's Parcel. "Base Year" means the Fiscal Year ending June 30, 2019. "Certificate of Occupancy" means a permit issued by the City authorizing the occupancy of a new Residential Unit or new Nonresidential Building Area. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining and providing for the levy and collection of the Special Tax. "CFD" or "CFD No. 2018-01" means Community Facilities District No. 2018-01 (TOD Area Maintenance) of the City of Placentia.
"City" means the City of Placentia.
"Council" means the City Council of the City of Placentia, acting as the legislative body of the City and the CFD.
"County" means the County of Orange, California.
"County Assessor" means the Orange County Assessor.
"Developed Property" means, in any Fiscal Year, all Taxable Property for which a Certificate of Occupancy has been issued after December 31, 2017 and prior to May 1 of the preceding Fiscal Year. These Assessor's Parcels can be classified into one of following groups: Single Family Detached, Single Family Attached, Multi -Family Residential, Retail/Other, Office, and Industrial.
"Existing Developed Property" means Residential Units and Nonresidential Building Area for which a building permit has been issued prior to January 1, 2018. "Fiscal Year" means the period starting July 1 and ending the following June 30. "Future Annexation Area" means the territory designated for potential future annexation to the CFD as shown in the "Map of Proposed Boundaries of the Community Facilities District No. 2018-01."
"Industrial Property" means all Assessor Parcels of Developed Property for which a Certificate of Occupancy has been issued after December 31, 2017 and prior to May 1 of the preceding Fiscal Year for manufacturing construction. "Land Use Classification" means any of the classes listed in Section B(1).
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"Maximum Special Tax" means the greatest amount of Special Tax, determined in accordance with Sections B and C below that can be levied in the CFD in any Fiscal Year on any Assessor's Parcel.
"Multi -Family Residential Property" means all Assessor Parcels of Developed Property for which a Certificate of Occupancy has been issued for construction of a structure with more than one Residential Unit after December 31, 2017 and prior to May 1 of the preceding Fiscal Year. This category includes but is not limited to apartment buildings, duplexes, triplexes, fourplexes, and condominiums. "Nonresidential Building Area" means the "chargeable covered and enclosed space" as defined by California Government Code section 65995(b)(2) to be constructed on Retail/Other Property, Office Property and Industrial Property. "Office Property" means all Assessor Parcels of Developed Property for which a Certificate of Occupancy has been issued after December 31, 2017 and prior to May 1 of the preceding Fiscal Year for general, professional and medical office construction. "Public Property" means any property within the boundaries of the CFD that is either (i) owned by the federal government, the State of California, the County, another public agency, or a private nonprofit organization that owns and is responsible for conservation of open space areas or (ii) encumbered by an easement owned by any such public agency or private organization which easement makes the development of such property impractical. Notwithstanding the foregoing, a leasehold or other possessory interest in any such property which is subject to taxation pursuant to Section 53340.1 of the Act shall not constitute "Public Property." "Residential Unit" means each separate residential dwelling unit on an Assessor's Parcel that comprises an independent facility capable of conveyance or rental as distinct from adjacent residential dwelling units. An accessory residential dwelling unit that shares a Parcel with a Single Family Detached Residential Unit shall not be considered as a Residential Unit for the purposes of this RMA. "Retail/Other Property" means all Assessor Parcels of Developed Property for which a Certificate of Occupancy has been issued for the retail, commercial, or other nonresidential construction after December 31, 2017 and prior to May 1 of the preceding Fiscal Year and is not Industrial Property or Office Property. "RMA" means this Rate and Method of Apportionment of Special Tax. "Services" means the services authorized to be funded by the CFD as described in the Resolution of Intention for the CFD.
"Single -Family Attached Property" means all Assessor Parcels of Developed Property for which a Certificate of Occupancy has been issued after December 31,
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2017 and prior to May 1 of the preceding Fiscal Year for construction of a residential structure consisting of two or more Residential Units that share common walls, have separate Assessor's Parcel Numbers assigned to them (except for a duplex Residential Unit which may share an Assessor's Parcel Number with another duplex Residential Unit).
"Single -Family Detached Property" means all Assessor Parcels of Developed Property for which a Certificate of Occupancy has been issued after December 31, 2017 and prior to May 1 of the preceding Fiscal Year for construction of a single-family Residential Unit that does not share a common wall with another Residential Unit. "Special Tax" means a Special Tax levied in any Fiscal Year to pay the Special Tax Requirement.
"Special Tax Requirement" means the amount required in any Fiscal Year for the CFD to 1) provide the Services; 2) pay for reasonable Administrative Expenses; 3) pay any amounts required to establish or replenish any reserve funds, and 4) cure any delinquencies in the payment of Special Taxes which have occurred in the prior Fiscal Year or pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year. "State" means the State of California.
"Taxable Property" means any Assessor's Parcel that is not Tax -Exempt Property. "Tax -Exempt Property" means any Parcel within the CFD which is not Developed Property or Undeveloped Property, and includes Public Property and Existing Developed Property.
"Undeveloped Property" means any Assessor's Parcel which is not Tax -Exempt Property, and for which no Certificate of Occupancy has been approved and issued by June 30 of the previous Fiscal Year.
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B. DETERMINATION OF MAXIMUM SPECIAL TAX
The Maximum Special Tax shall be calculated as follows:
1. Classification of Parcels. Each Fiscal Year, using the Definitions above and the Parcel records of the County Assessor's Secured Tax Roll of July 1, the City shall cause each Parcel of land in the CFD to be classified as Developed Property, Undeveloped Property, or Tax -Exempt Property. The City shall cause all Developed Property to be further classified as Single Family Detached Property, Single Family Attached Property, Multi -Family Property, Retail/Other Property, Office Property and Industrial Property.
2. Assignment of Maximum Special Tax. Each Fiscal Year, the Base Year Maximum Tax shown below shall be escalated as specified in Section C, Annual Adjustment of Maximum Special Tax, to determine the Maximum Special Tax for the upcoming Fiscal Year for each Land Use Classification.
Land Use Classification
Developed Single Family Detached Property
Developed Single Family Attached Property
Developed Multi -Family Property
Developed Retail/Other Property
Developed Office Property
Developed Industrial Property
Undeveloped Property
Tax -Exempt Property
Base Year Maximum Tax
$138 per Residential Unit
$112 per Residential Unit
$127 per Residential Unit
$0.09 per square foot of
Nonresidential Building Area
$0.13 per square foot of
Nonresidential Building Area
$0.06 per square foot of
Nonresidential Building Area
$0
$0
3. Conversion of a Tax -Exempt Property to a Taxable Property. If a Tax -Exempt Property is not needed for public use and is converted to private use, it shall become subject to the Special Tax.
4. Multiple Land Use Classifications. In some instances, an Assessor's Parcel may contain more than one Land Use Classification. The Maximum Special Tax that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Taxes that can be levied for all Land Use Classes located on that Assessor's Parcel. The CFD Administrator shall determine the allocation to each Land Use Classification.
5. Existing Developed Property. Residential Units and Nonresidential Building Area for which a building permit has been issued prior to January 1, 2018 is exempt from the Special Tax.
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6. Annexed Property. Each Assessor's Parcel of Developed Property that is annexed into the CFD shall be subject to the Special Tax in effect during the current Fiscal Year.
C. ANNUAL ADJUSTMENT OF MAXIMUM SPECIAL TAX
Beginning in January 2019 and each January thereafter, the Maximum Special Tax shall be adjusted each fiscal year in an amount equal to the percentage increase during the preceding year in the Consumer Price Index for All Urban Consumers in the Los Angeles -Riverside -Orange County metropolitan area (CPI -U), as published by the U.S. Department of Labor, Bureau of Labor Statistics, (or if this index ceases publication, an equivalent index), or three (3) percent, whichever is greater. Each annual adjustment of the Maximum Special Tax shall become effective for the following Fiscal Year.
D. DETERMINATION OF THE ANNUAL SPECIAL TAX
Commencing with the Base Year, and for each subsequent Fiscal Year, the Council shall determine the Special Tax Requirement and shall levy the Annual Special Tax on each Assessor's Parcel of Developed Property at up to one hundred percent of the applicable Maximum Special Tax to fund the Special Tax Requirement.
Under no circumstances will the Annual Special tax levied against any Assessor's Parcel of Developed Property increase by more than ten (10) percent as a consequence of delinquency or default by the owner of any other Assessor's Parcel within the CFD.
Subject to the preceding, the amount of Annual Special Tax levied upon any Developed Property and Undeveloped Property in any Fiscal Year shall not exceed the Maximum Special Tax for such Fiscal Year as computed herein.
E. DURATION OF THE SPECIAL TAX
Assessor's Parcels in the CFD shall remain subject to the Special Tax in perpetuity. If the Special Tax ceases to be levied, the City or its designee 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 that the Tien imposed by the Notice of Special Tax Lien is extinguished.
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F. PREPAYMENT OF SPECIAL TAX
Prepayment of the Special Tax is not authorized.
G. APPEALS AND INTERPRETATION PROCEDURE
Any property owner who feels that the portion of the Special Tax levied on the subject property is in error, may file a written appeal no later than April 10 of the Fiscal Year in which the levy occurred, with the Public Works Director or his or her designee, appealing the levy of the Special Tax on the subject property. Public Works Director or his or her designee will promptly review the appeal, and, if necessary, meet with the applicant, and decide the merits of the appeal. If the findings of the Public Works Director or his or her designee verify that the Special Tax levied should be modified, the Special Tax levy for future Fiscal Years shall be corrected, and a credit against future Special Taxes shall be arranged, if applicable. Any overcharges shall be corrected solely by means of adjustments to future Special Tax levies; no cash refunds shall be made. Any dispute over the decision of the Public Works Director or his or her designee shall be referred to the Public Works Director, and the Council and the decision of the Council shall be final and binding on all parties.
Interpretation may be made by resolution of the Council for purposes of clarifying any vagueness or uncertainty as it relates to the application of the Special Tax rate, or application of the method of apportionment, or classification of properties or any definition applicable to the CFD.
H. COLLECTION OF THE SPECIAL TAX
The Special Tax shall be collected each year in the same manner and at the same time as ad valorem property taxes are collected and shall be subject to the same penalties and lien priorities in the case of delinquency as is provided for ad valorem taxes. The City shall cause the actions required above to be done for each Fiscal Year in a timely manner to assure that the schedule of the Special Taxes to be collected are received by the County Auditor for inclusion with billings for such ad valorem taxes for the applicable Fiscal Year. However, the CFD Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of the City or as otherwise determined appropriate by the CFD Administrator.
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