San Jacinto City Council
October 15, 2024

STATE OF CALIFORNIA ) RESOLUTION NO. 4044
COUNTY OF RIVERSIDE ) ss

CITY OF SAN JACINTO )

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN JACINTO DECLARING INTENTION TO ANNEX

TERRITORY TO SAN JACINTO COMMUNITY FACILITIES
DISTRICT NO. 2020-1 AND ADOPTING A MAP OF THE

AREA PROPOSED TO BE ANNEXED THERETO
(ANNEXATION NO. 16 TO CFD 2020-1 (TAX ZONE NO. 17))
WHEREAS, the City Council (the “City Council”) of the City of San Jacinto (the “City”) has established San Jacinto Community Facilities District No. 2020-1, County of Riverside, State of California (the “District”) for the purpose of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City as a result of the development of said real property; and
WHEREAS, it is necessary that certain parcels of property be annexed to the District in order that they may be developed and receive the benefit of services which will be financed by the annual levy of special taxes on said property sufficient to pay the costs of such services and costs incidental thereto; and WHEREAS, the City Council is authorized by Article 3.5 (commencing with Section 53339) of Chapter 2.5 of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the “Mello-Roos Community Facilities Act of 1982,” (the “Act”) to annex territory to the District by complying with the procedures set forth in said Article 3.5;
NOW, THEREFORE, BE IT RESOLVED, determined and ordered by the City Council of the City of San Jacinto, as follows:

Section 1. Recitals. The above recitals are true and correct and are hereby incorporated into this resolution.

Section 2. Name of District. The name of the existing Community Facilities District is San Jacinto Community Facilities District No. 2020-1, County of Riverside, State of California.

Section 3. Intention. The City Council declares its intention to conduct proceedings pursuant to said Article 3.5 for the annexation to the District of the territory described in Exhibit “A” attached hereto. The City Council determines that the public convenience and necessity require that such territory be annexed to the District.

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Section 4. Description of Territory Proposed To Be Annexed; Annexation Map. The territory which is included in the District is described on the map of the District recorded on May 20, 2020, in Book 85 of Maps of Assessment and Community Facilities Districts, page 14, and as Instrument No 2020-0214738 in the official records of the County of Riverside. The territory proposed to be annexed to the District is described in Exhibit “A” attached hereto and by this reference made a part hereof (the “Annexation Area”). Such territory is also shown and described on the map thereof entitled “Annexation Map No. 16, Community Facilities District No. 2020-1 (Tax Zone No. 17) of the City of San Jacinto, County of Riverside, State of California,” which is on file with the City Clerk (the “Annexation Map”).

Section 5. Types of Services; Incidental Expenses; Plan for Providing Services. A general description of the services which are to be funded with the revenues from special taxes which are to be levied on parcels of taxable property within the District is set forth in Exhibit “B” attached hereto and by reference made a part hereof. The District shall also finance costs associated with the determination of the amount of and the levy and collection of special taxes which are levied to provide such services and costs otherwise incurred in order to carry out its authorized purposes. The services described above shall be provided, as needed, throughout the District and the territory proposed to be annexed thereto for the benefit of all owners of property and residents of the District and the territory proposed to be annexed thereto. All owners of taxable parcels of property within the District and the territory proposed to be annexed thereto shall pay special taxes at the same rate to finance the annual cost of providing such services. The services to be provided and financed by the District, as previously described, are necessary to meet increased demands placed upon the City as a result of development occurring within the District and the territory proposed to be annexed thereto.

Section 6. Special Taxes. Except where funds are otherwise available, special taxes sufficient to pay the costs of the services described in Section 5 above and the annual administrative expenses of the City and the District in determining, apportioning, levying, and collecting such special taxes shall be annually levied within the territory proposed to be annexed to the District. Pursuant to Section 53340 of the California Government Code, the special taxes shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that the District may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations. The rates and method of apportionment of said special taxes shall be as set forth in Exhibit “C” attached hereto and by this reference made a part hereof.

As set forth in the rate and method of apportionment, the Act allows the CFD to levy the Special Tax against Assessor’s Parcel of Developed Property within the CFD and increase the amount of such Special Tax up to 10% as a consequence of delinquency

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or default by the owner of any other Assessor’s Parcel within CFD No. 2020-1. However, under no circumstances will the Special Tax levied against any Assessor’s Parcel of Developed Property within the Annexation Area be increased by more than 10% as a consequence of delinquency or default by the owner of any other Assessor’s Parcel within the Annexation Area. The CFD shall not levy any additional amounts against any Assessor’s Parcel of Developed Property as a consequence of delinquency or default by the owner of any Assessor’s Parcel outside of the Annexation Area.

Section 7. Adoption of Annexation Map. Pursuant to Section 3110.5 of the Streets and Highways Code, the City Council adopts the Annexation Map as the map of the area proposed to be annexed to the District. Pursuant to Section 3111 of said Code, the City Clerk shall file the original of the Annexation Map in her office and shall file a copy of the Annexation Map with the County Recorder of the County of Riverside no later than 15 days prior to the date of the hearing specified in Section 8 hereof.

Section 8. Hearing. A public hearing on the proposed annexation of said territory to the District shall be held at 6:30 p.m. on Tuesday, November 19, 2024, in the San Jacinto Community Center, located at 625 S. Pico Avenue, San Jacinto, California.

Section 9. Notice. The City Clerk shall publish a notice of the time and place of said hearing as required by Section 53322 of the California Government Code and shall also give notice of the hearing by first class mail to each registered voter and landowner within the territory proposed to be annexed to the District as prescribed by Section 53339.4 of said Code. Said notice shall be published at least seven (7) days and mailed at least fifteen (15) days before the date of the hearing and shall contain the information required by said Section 53339.4.

Section 10. Description of Voting Procedures. The voting procedures to be followed in conducting the election on the proposition with respect to the levy of special taxes within the territory proposed to be annexed to the District to shall be as follows:
(a) If at the time of the close of the public or protest hearing (hereinafter referred to as the “protest hearing”) at least 12 persons are registered to vote within the territory proposed to be annexed to the District, the election shall be conducted by the City Clerk, and shall be held on a date selected by the City Council in conformance with the provisions of Section 53326 of the California Government Code (“Section 53326”) and pursuant to the applicable provisions of law regulating elections of the City, insofar as they may be applicable, and pursuant to Section 53326 the ballots for the election shall be distributed to the qualified electors of the territory proposed to be annexed to the District by mail with return postage prepaid and the election shall be conducted as a mail ballot election. (b) If at the time of the close of the protest hearing, and for at least the preceding 90 days, less than 12 persons have been registered to vote within the

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territory proposed to be annexed to the District, and pursuant to Section 53326, the vote is therefore to be by the landowners of that territory, with each landowner of record at the close of the protest hearing having one vote for each acre or portion of an acre of land that he or she owns, the election shall be conducted by the City Clerk as follows:
(1) The election shall be held on the earliest date following the conclusion of the protest hearing upon which it can be held pursuant to Section 53326 which may be selected by the City Council, or such earlier date as the owners of land within the territory proposed to be annexed to the District and the City Clerk agree and concur is acceptable. (2) Pursuant to Section 53326, the election may be held earlier than 90 days following the close of the protest hearing if the qualified electors of the territory proposed to be annexed to the District waive the time limits for conducting the election set forth in Section 53326 by unanimous written consent and the City Clerk concurs in such earlier election date as shall be consented to by the qualified electors. (3) Pursuant to Section 53326, ballots for the election shall be distributed to the qualified electors by the City Clerk by mail with return postage prepaid or by personal service.
(4) Pursuant to applicable provisions of law regulating elections of the City which govern the conduct of mail ballot elections, and Division 4 (commencing with Section 4000) of the California Elections Code with respect to elections conducted by mail, the City Clerk shall mail or deliver to each qualified elector an official ballot in a form specified by the City Council in the resolution calling the election, and shall also mail or deliver to all such qualified electors a ballot pamphlet and instructions to voter, including a sample ballot identical in form to the official ballot but identified as a sample ballot, a statement pursuant to Section 9401 of the said Code, an impartial analysis by the City Attorney pursuant to Section 9280 of the said Code with respect to the ballot proposition contained in the official ballot, ballot arguments and rebuttals, if any, pursuant to Sections 9281 to 9287, inclusive, of said Code, a return identification envelope with prepaid postage thereon addressed to the City Clerk for the return of voted official ballots, and a copy of this resolution; provided, however, that such statement, analysis and arguments may be waived with the unanimous consent of all the landowners of the territory proposed to be annexed to the District and shall be so stated in the resolution adopted by the City Council calling the election.

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(5) The official ballot to be mailed or delivered by the City Clerk to each landowner-voter shall have printed or typed thereon the name of the landowner-voter and the number of votes to be voted by the landownervoter, and shall have appended to it a certification to be signed by the person voting the official ballot which shall certify that the person signing the certification is the person who voted the official ballot, and if the landowner-voter is other than a natural person, that he or she is an officer of or other person affiliated with the landowner-voter entitled to vote such official ballot, that he or she has been authorized to vote such official ballot on behalf of the landowner-voter, that in voting such official ballot it was his or her intent, as well as the intent of the landowner-voter, to vote all votes to which the landowner-voter is entitled based on its land ownership on the proposition set forth in the official ballot as marked thereon in the voting square opposite such proposition, and further certifying as to the acreage of the landowner-voter’s land ownership within the territory proposed to be annexed to the District.
(6) The return identification envelope delivered by the City Clerk to each landowner-voter shall have printed or typed thereon the following:
(i) the name of the landowner, (ii) the address of the landowner, (iii) a declaration under penalty of perjury stating that the voter is the landowner or the authorized representative of the landowner entitled to vote the enclosed ballot and is the person whose name appears on the identification envelope, (iv) the printed name and signature of the voter, (v) the address of the voter, (vi) the date of signing and place of execution of said declaration, and (vii) a notice that the envelope contains an official ballot and is to be opened only by the City Clerk.
(7) The information-to-voter form to be mailed or delivered by the City Clerk to the landowner-voters shall inform them that the official ballots shall be returned to the City Clerk properly voted as provided thereon and with the certification appended thereto properly completed and signed in the sealed return identification envelope with the certification thereon completed and signed and all other information to be inserted thereon properly inserted by 5:00 o’clock p.m. on the date of the election. (8) Upon receipt of the return identification envelopes, which are returned prior to the voting deadline on the date of the election, the City Clerk shall canvass the votes cast in the election and shall file a statement with the City Council at its next regular meeting regarding the results of such canvass and the election.

The procedures set forth in this section for conducting the election may be

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modified as the City Council may determine to be necessary or desirable by a resolution subsequently adopted by the City Council.

PASSED, APPROVED, and ADOPTED this 15th day October 2024 by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:

City of San Jacinto
________________________________
Phil Ayala, Mayor
ATTEST:

Julia Espinoza, City Clerk

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CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss

CITY OF SAN JACINTO )
I, Julia Espinoza, City Clerk of the City of San Jacinto, DO HEREBY CERTIFY that the foregoing Resolution No. 4044 was passed, approved, and adopted at the Regular Meeting of the San Jacinto City Council held on the 15th day of October 2024.

AYES:

NAYS:

ABSENT:

ABSTAIN:

WITNESS MY HAND AND OFFICIAL SEAL this 15th day of October 2024. ________________________________
Julia Espinoza, City Clerk
City of San Jacinto

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EXHIBIT “A”

LEGAL DESCRIPTION

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF SAN

JACINTO, IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:

APN: 436-490-011

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EXHIBIT “B”

DESCRIPTION OF SERVICES
The types of services proposed to be provided for and financed by the proposed District are:
(a) the maintenance of landscaped areas, parkways, and medians improvements throughout the District and public rights-of-ways, including, but not limited to, street trees, fencing, irrigation systems, sidewalks, drainage systems, graffiti removal, replacement, furnishing of water, electric current or energy, gas, or other illuminating agent for the operation of any improvement within the District; and
(b) the maintenance and servicing of streetlights, traffic signals, and appurtenant facilities, including, but not limited to, furnishing of electric current, materials, contracted services, and the necessary maintenance, replacement, and repair required to keep the improvements in operational and satisfactory condition; and (c) any other services authorized under the Act.

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EXHIBIT “C”

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX

CITY OF SAN JACINTO
COMMUNITY FACILITIES DISTRICT NO. 2020-1

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
A Special Tax shall be levied and collected in Community Facilities District No. 2020-1, City of San Jacinto (“CFD 2020-1”) each Fiscal Year, in an amount determined by the application of the procedures described below. All of the Taxable Property (as defined below) in CFD 2020-1, 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 Dwelling Unit” means a secondary residential unit of limited size, as defined in California Government Code Section 65852.1 as that may be amended from time to time, that shares a Parcel with a Unit of Single Family Detached Property. "Acre or Acreage" means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map or in the Assessor’s Data for each Assessor’s Parcel. In the event the Assessor’s Parcel Map or Assessor’s Data shows no acreage, the Acreage for any Assessor’s Parcel shall be determined by the CFD Administrator based upon the applicable final map, parcel map, condominium plan, or other recorded County parcel map or calculated using available spatial data and GIS. The square footage of an Assessor’s Parcel is equal to the Acreage of such parcel multiplied by 43,560. “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 CFD 2020-1: 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 CFD 2020-1.
“Affordable Housing Property” means, in any Fiscal Year, all or a portion of any Assessor’s Parcel within the boundaries of CFD 2020-1 that is subject to a deed

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restriction, resale restriction, or regulatory agreement recorded in favor of the City of San Jacinto 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 Attached Property” means Single Family Attached Property that is also Affordable Housing Property.
“Affordable Single Family Detached Property” means Single Family Detached Property that is also Affordable Housing Property.
“Agricultural Property” means all Assessor’s Parcels of Developed Property in CFD 2020-1 that are used for farming or agriculture according to Assessor’s Data or as otherwise known by the CFD Administrator.
“Annual Services Costs” means the amounts required to fund services authorized to be funded by CFD 2020-1.
“Annual Special Tax Requirement” means that amount with respect to CFD 2020-1 determined by the City Council or designee as required in any Fiscal Year to pay: (1) the Administrative Expenses, (2) the Annual Services Costs, (3) the Contingent Special Tax Requirement, (4) any amount required to establish or replenish any reserve or replacement fund established in connection with CFD 2020-1, and (5) 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. "Backup Contingent Special Tax" means the Backup Contingent Special Tax applicable to each Assessor’s Parcel of Taxable Property, as determined in accordance with Section III below.
"Backup Special Tax" means the Backup Special Tax applicable to each Assessor’s Parcel of Taxable Property, as determined in accordance with Section III below. “Boundary Map” means that map recorded with the County Recorder’s office on the 20th day of May in Book 85 at Page 14 as Document Number 2020-0214738.

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“Building Square Foot(age)” means the structure's square footage as shown in the building permit issued or as contained in the County Assessor’s Data. “CFD 2020-1” means the Community Facilities District No. 2020-1, City of San Jacinto, County of Riverside, State of California.
“CFD 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.
“City” means the City of San Jacinto, County of Riverside, California. “City Council” means the City Council of the City, acting as the legislative body of CFD 2020-1.
“Commercial Property” means all Assessor’s Parcels of Developed Property for which a building permit was issued for a commercial use, according to Assessor’s Data or as otherwise known by the CFD Administrator.
“Contingent Services” means those services to be provided initially by a POA or a property owner where an irrevocable offer of dedication, public easement, or other instrument allows for the dedication of improvements to the City so that the City or contractor(s) of the City may provide such services should the POA or property owner be unable to provide the Contingent Services to the City’s standards or pay for the costs of such services. The actual services that are considered Contingent Services may differ within each Tax Zone.
“Contingent Special Tax” means that amount levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Contingent Special Tax Requirement. “Contingent Special Tax Requirement” means that amount with respect to each Tax Zone as required in any Fiscal Year if the POA is unable to provide the Contingent Services to the City’s standards or pay for the costs of Contingent Services incurred or otherwise payable.
“County” means the County of Riverside, California.
“Developed Property” means, in any Fiscal Year, all Taxable Property in CFD 2020-1 for which a building permit for new construction was issued by the City prior to June 1 of the preceding Fiscal Year. Agricultural Property used for farming or agriculture is considered Developed Property even if no structure is on the Parcel. “Exempt Property” means all property located within the boundaries of CFD 2020-1 which is exempt from the Special Tax pursuant to Section V below. “Fiscal Year” means the period from July 1st of any calendar year through June 30th of the following calendar year.

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“Future Annexation Area” means the area designated for future annexation to CFD 2020-1 as shown in the CFD 2020-1 Boundary Map, as may be amended from time to time.
“GIS” means a geographic information system.
“Industrial Property” means all Assessor’s Parcels of Developed Property for which a building permit was issued for an industrial use, according to Assessor’s Data or as otherwise known by the CFD Administrator.
“Maximum Contingent Special Tax” means the maximum Contingent Special Tax authorized for levy in any Fiscal Year that may apply to Taxable Property as described in Section III.
“Maximum Special Tax” means the maximum Special Tax authorized for levy in any Fiscal Year that may apply to Taxable Property as described in Section III. “Mixed Use Property” means all Assessor’s Parcels of Developed Property that have more than one property classifications, allowing for both residential and other use types on each such Assessor’s Parcel. For an Assessor’s Parcel of Mixed Use Property, the Special Tax shall be calculated and levied for each use type present on the Assessor’s Parcel.
“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, according to Assessor’s Data or as otherwise known by the CFD Administrator. “Non-Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit was issued that is not used for people to live in and does not include Agricultural Property, Commercial Property, Multi-Family Property, Industrial Property, or Public Property, according to Assessor’s Data or as otherwise known by the CFD Administrator.
“Parcel” means a lot or parcel with a parcel number assigned by the Assessor of the County.
“Property Owner’s Association” or “POA” means any property owner’s association established to provide Contingent Services within a Tax Zone. “Property Owners Association Property” means any property within the boundaries of CFD 2020-1 which is (a) owned by a property owners’ association or (b) designated with specific boundaries and acreage on a final subdivision map as property owner association property. As used in this definition, a property owner association includes any master or sub-association.

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“Proportionately” means, for Developed Property that the ratio of the Special Tax levy to the Assigned Special Tax or the Backup Special Tax is equal for all Assessors’ Parcels of Developed Property within CFD 2020-1. For Undeveloped Property, “Proportionately” means that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor’s Parcels of Undeveloped Property within CFD 2020-1. “Public Property” means any property within the boundaries of CFD 2020-1 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, according to Assessor’s Data or as otherwise known by the CFD Administrator.
“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, according to Assessor’s Data or as otherwise known by the CFD Administrator.
“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 equal to the annual change in the April to April Riverside-San Bernardino-Ontario CPI-U Index up to a maximum factor of 5% that will be applied annually after Fiscal Year 2020/21 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 CFD 2020-1 at the time of its formation is within Tax Zone No. 1.

Additional Tax Zones may be created when property is annexed to CFD 2020-1, 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 CFD 2020-1 shall be identified by Assessor’s Parcel number in the annexation documents at the time of annexation.

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“Taxable Property” means all Parcels within the boundary of CFD 2020-1 that are not Exempt Property, or exempt from the Special Tax pursuant to the Act or Section V below. “Undeveloped Property” means all Parcels of Taxable Property that are not Developed Property.
“Unit” means any 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 Dwelling Unit that shares a Parcel with a Unit of Single Family Detached Property, Single Family Attached Property shall not be considered a separate Unit for purposes of calculating the Special Tax.
“Welfare Exempt Property” means all Parcels within the boundaries of CFD 2020-1 that have been granted a welfare exemption pursuant to Section 53340 (c) under the Act under subdivision (g) of Section 214 of the Revenue and Taxation Code by the County.

II. DETERMINATION OF TAXABLE PARCELS
On or about July 1 of each Fiscal Year, the CFD Administrator shall determine the valid Assessor’s Parcel Numbers for all Taxable Property within CFD 2020-1. If any Assessor’s Parcel Numbers are no longer valid from the previous Fiscal Year, the CFD 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 Maximum Special Tax rates shall be assigned to the new Assessor’s Parcels pursuant to Section III. The CFD Administrator shall also determine: (i) the Tax Zone within which each Parcel is located; (ii) which Parcels are Developed Property and Undeveloped Property; (iii) the number of Units each Parcel contains; (iv) the property type, i.e. Single Family Detached Property, etc; and (iv) the Annual Special Tax Requirement for the Fiscal Year.

III. 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 CFD Administrator. The Annual Special Tax Requirement shall be apportioned to each Parcel within CFD 2020-1 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 described in the table below to satisfy the Annual Special Tax Requirement.

Third. If additional monies are needed to satisfy the Annual Special Tax Requirement after the first step has been completed, the Special Tax shall

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be levied Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax for Undeveloped Property.

Under no circumstances will the Special Tax levied against any Assessor’s Parcel of Developed Property be increased by more than 10% as a consequence of delinquency or default by the owner of any other Assessor’s Parcel within CFD No. 2020-1.

TABLE 1
SPECIAL TAX RATES – TAX ZONE NO. 1
FISCAL YEAR 2020/21*
Property Type
Special Tax
Rate Per
Expected
Special Tax
Revenue
Commercial Property $1,585.20 Acre $13,601.00
Undeveloped Property $1,585.20 Acre $13,601.00
*On each July 1, commencing on July 1, 2021, the Maximum Special Tax Rate and Expected Special Tax Revenue for
each Tax Zone shall be increased by the Tax Escalation
Factor.

3.A.5.a
Packet Pg. 150 Attachment: CFD 2020-1 Annex. No. 16 - Resolution 4044 of Intention (CFD 2020-1 Annexation 16 - DR Horton T38339 ROI 4044) Resolution No. 4044
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TABLE 2
CONTINGENT SPECIAL TAX RATES – TAX ZONE NO. 1
FISCAL YEAR 2020/21*
Property Type
Contingent
Special Tax
Rate
Per
Expected
Contingent
Special Tax
Revenue
Commercial Property $5,406.45 Acre $46,387.30
Undeveloped Property $5,406.45 Acre $46,387.30
*On each July 1, commencing on July 1, 2021, the Maximum Special Tax Rate and Expected Contingent Special Tax
Revenue for each Tax Zone shall be increased by the Tax Escalation Factor.

Maximum Special Taxes
The Maximum Special Tax for each Assessor’s Parcel of Taxable Property within each Tax Zone shall be the greater of the Special Tax as show in Table 1 or the Backup Special Tax.

The Maximum Contingent Special Tax for each Assessor’s Parcel of Taxable Property within each Tax Zone shall be the greater of the Contingent Special Tax as shown in Table 2 or the Backup Contingent Special Tax.

Backup Special Taxes
The Backup Special Tax for each Assessor’s Parcel of Taxable Property within each Tax Zone shall be the rate per Acre that results in the Expected Special Tax Revenue for each Tax Zone.

The Backup Contingent Special Tax for each Assessor’s Parcel of Taxable Property within each Tax Zone shall be the rate per Acre that results in the Expected Contingent Special Tax Revenue for each Tax Zone.

A different Maximum Special Tax rate may be identified in Tax Zones added to CFD 2020- 1 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.

3.A.5.a
Packet Pg. 151 Attachment: CFD 2020-1 Annex. No. 16 - Resolution 4044 of Intention (CFD 2020-1 Annexation 16 - DR Horton T38339 ROI 4044) Resolution No. 4044
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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.

Additionally, Welfare Exempt Property shall be reimbursed for Special Tax levied and paid. A property owner must provide documentation of the exemption within one calendar year after having paid the Special Taxes for which an exemption has been granted. A refund of the amount of Special Taxes paid for the Fiscal Year the exemption has been granted will be provided to the owner of Welfare Exempt Property who was granted the exemption.

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 CFD 2020-1, and may collect delinquent Special Taxes through foreclosure or other available methods.

A Special Tax shall continue to be levied and collected within CFD 2020-1, 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 CFD Administrator claiming that the amount or application of the Special Tax is not correct.

The appeal must be filed not later than one calendar year after having paid the Special Taxes that 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 CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination.

3.A.5.a
Packet Pg. 152 Attachment: CFD 2020-1 Annex. No. 16 - Resolution 4044 of Intention (CFD 2020-1 Annexation 16 - DR Horton T38339 ROI 4044) Resolution No. 4044
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If the property owner disagrees with the CFD Administrator’s decision relative to the appeal, the owner may then file a written appeal with the City Council whose subsequent decision shall be final and binding on all interested parties. If the decision of the CFD Administrator or subsequent decision by the City Council requires the Special 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.

3.A.5.a
Packet Pg. 153 Attachment: CFD 2020-1 Annex. No. 16 - Resolution 4044 of Intention (CFD 2020-1 Annexation 16 - DR Horton T38339 ROI 4044) Resolution No. 4044
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CITY OF SAN JACINTO
COMMUNITY FACILITIES DISTRICT NO. 2020-1
ATTACHMENT 1

SPECIAL TAX RATES
Tax
Zone APNs
Base
Year* Rate
Expected
Special Tax
Revenue
17 436-490-011 2024/25
$763.00/Unit (Single
Family Detached
Property)
$57,988.00
* On each July 1, commencing on July 1 after the Base Year, the Maximum Special Tax Rate and Expected Special Tax Revenue for each Tax Zone shall be increased by the Tax Escalation Factor.

CONTINGENT SPECIAL TAX RATES
Tax
Zone APNs
Base
Year* Rate
Expected
Contingent
Special Tax
Revenue
17 436-490-011 2024/25
$0.00/Unit (Single
Family Detached
Property)
$0.00
* On each July 1, commencing on July 1 after the Base Year, the Maximum Special Tax Rate and Expected Contingent Special Tax Revenue for each Tax Zone shall be increased by the Tax Escalation Factor.

3.A.5.a
Packet Pg. 154 Attachment: CFD 2020-1 Annex. No. 16 - Resolution 4044 of Intention (CFD 2020-1 Annexation 16 - DR Horton T38339 ROI 4044)

3.A.5.b
Packet Pg. 155 Attachment: CFD 2020-1 Annex 16 (CFD 2020-1 Annexation 16 - DR Horton T38339 ROI 4044) October 15, 2024
TO: City Council
REQUESTED BY: Erika Gomez, Finance Director
APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: CFD 2003-1 Annex 71 - DR Horton T38339 ROI 4045 RECOMMENDATION:

Staff recommends that the City Council adopt Resolution No. 4045, Resolution of Intention to Annex Territory, commonly known as DR Horton Tract 38339, into Community Facilities District No. 2003-1 and Authorize the Levy of Special Taxes therein.

DISCUSSION:

The City Council and Planning Commission previously identified the need for additional funding for police protection and fire protection, and suppression services. This includes funding for increased service levels necessitated by new development within the City. In response, the City Council formed Community Facilities District 2003-1 (the "CFD") and approved the levy of special taxes therein. The City levies a special tax on eligible parcels within the CFD to mitigate the added cost of providing public safety services to new development.

The property owner(s) have submitted a Petition to annex into Community Facilities District No. 2003-1. Adoption of the Resolution of Intention is required to annex the territory into the CFD.

The Resolution of Intention approves the annexation boundaries -- commonly known as the site of Tract 38339 (76 SFR units) of DR Horton’s Serrano Pointe residential development located southeast of Cottonwood Avenue and South Kirby Street and northwest of Oostam Drive and Ivy Crest Drive -- and sets the Public Hearing date for November 19, 2024, during a regularly scheduled meeting of the City Council.

A ballot will be mailed to the property owner(s) within the annexation territory to vote for or against the annexation.

FISCAL IMPACT:

The annexation of territory into CFD 2003-1 will assists in mitigating the cost of providing police protection and fire protection, and suppression services. In Fiscal Year 2024/2025, it is anticipated that the CFD will collect approximately $49,554 in special tax revenue based upon full project buildout.

ATTACHMENTS:

CFD 2003-1 Annex. No. 71 - Resolution 4045 of Intention Exhibit A - Annexation Map
Exhibit B - Rate and Method of Apportionment of Special Tax

3.A.6
Packet Pg. 156
Resolution No. 4045
STATE OF CALIFORNIA ) RESOLUTION NO. 4045
COUNTY OF RIVERSIDE ) ss

CITY OF SAN JACINTO )

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN

JACINTO DECLARING ITS INTENTION TO ANNEX TERRITORY
INTO COMMUNITY FACILITIES DISTRICT NO. 2003-1 AND TO

AUTHORIZE THE LEVY OF SPECIAL TAXES THEREIN
City of San Jacinto
Community Facilities District No. 2003-1
Annexation No. 71
WHEREAS, the City Council (the “Council”) of the City of San Jacinto (the “City”) has previously conducted proceedings to establish Community Facilities District No. 2003-1 (the “CFD”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the "Act"), Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing at Section 53311, of the California Government Code; and WHEREAS, the Council has received a petition (including waivers) from the landowner requesting that it annex into the CFD under the Act, to provide for the costs of services, and the Council now desires to commence proceedings to annex territory into the CFD as described herein; and
WHEREAS, under the Act, this Council, as the legislative body for the CFD, is empowered with the authority to annex territory to the CFD, and now desires to undertake proceedings to annex territory to the CFD.

NOW, THEREFORE, BE IT RESOLVED, determined and ordered by the City Council of the City of San Jacinto as follows:

SECTION 1. This Council hereby finds and determines that public convenience and necessity require that territory be added to the CFD.

SECTION 2. The name of the existing CFD is “City of San Jacinto Community Facilities District No. 2003-1.”
SECTION 3. A general description of the territory included in the existing CFD is hereinafter described as follows: All that property and territory as originally included in the existing CFD heretofore recorded as Instrument No. 2003- 995886 in the office of the County Recorder for the County of Riverside on December 22, 2003 in Book 55 at Page 58-59 of Maps of Assessments and Community Facilities Districts, to which map reference is hereby made, and as such map was amended as a result of prior annexations.

3.A.6.a
Packet Pg. 157 Attachment: CFD 2003-1 Annex. No. 71 - Resolution 4045 of Intention (CFD 2003-1 Annex 71 - DR Horton T38339 ROI 4045) Resolution No. 4045
A description of the boundaries and territory proposed to be annexed is as follows: All that territory proposed to be annexed to the CFD is as shown on the Annexation Map for Annexation No. 71 to the CFD, on file with the City Clerk, the boundaries of which territory are hereby preliminarily approved and to which map reference is hereby made for further particulars. The area proposed to be annexed to the CFD is as shown on the Annexation Map identified in Exhibit A. The City Clerk is hereby directed to cause to be recorded such Annexation Map, showing the territory to be annexed, in the office of the County Recorder of the County of Riverside within fifteen days of the date of adoption of this resolution.

SECTION 4. The type of services financed by the CFD and pursuant to the Act shall consist of those services described as follows: (a) police protection services, including but not limited to criminal justice services, and (b) fire protection and suppression services. It is presently intended that the services will be provided, without preference or priority, to the existing territory in the CFD and the territory proposed to be annexed to the CFD.

SECTION 5. Except to the extent that funds are otherwise available to the CFD to pay for the services, a special tax sufficient to pay the costs thereof, secured by recordation of a continuing lien against all non-exempt real property in the CFD (including the property to be annexed thereto), is intended to be levied annually within the CFD, and collected in the same manner as ordinary ad valorem property taxes, or in such other manner as this Council shall determine including direct billing of the affected property owners. The proposed rate and method of apportionment of the special tax among the parcels of real property within the CFD, as now in existence and following the annexation proposed herein, in sufficient detail to allow each landowner within the territory proposed to be annexed to the CFD to estimate the maximum amount such owner will have to pay, are described in Exhibit B to this Resolution of Intention.

SECTION 6. The special tax proposed to be levied for services to be supplied within the territory proposed to be annexed will be equal to the special taxes levied to pay for the same services in the CFD, except that a higher or lower special tax may be levied within the territory proposed to be annexed to the extent that the actual cost of providing the services in that territory is higher or lower than the cost of providing those services in the CFD. Notwithstanding the foregoing, the special tax may not be levied at a rate which is higher than the maximum special tax authorized to be levied pursuant to the CFD Rate and Method in Exhibit B.

3.A.6.a
Packet Pg. 158 Attachment: CFD 2003-1 Annex. No. 71 - Resolution 4045 of Intention (CFD 2003-1 Annex 71 - DR Horton T38339 ROI 4045) Resolution No. 4045
SECTION 7. Notice is given that on Tuesday, November 19, 2024, at 6:30 p.m. or as soon thereafter as the matter may be heard, in the regular meeting place of this Council at the City of San Jacinto, Community Center, 625 S.

Pico Avenue, San Jacinto, California, and the same are hereby appointed and fixed as the time and place when and where this Council, as legislative body for the CFD, will conduct a public hearing on the annexation of territory to the CFD, and consider and finally determine whether the public interest, convenience and necessity require said annexation of territory to the CFD and the levy of said special tax therein.

SECTION 8. The City Clerk is hereby directed to cause notice of said public hearing to be given by publication one time in a newspaper of general circulation in the area of the CFD, including the area to be annexed to the CFD. The publication of the notice shall be completed at least seven days before the date herein set for said hearing. The City Clerk may also cause a copy of such notice to be mailed to the registered voters and landowners within the territory proposed to be annexed, which shall be mailed at least fifteen days before the date of said hearing. The notice shall be substantially in the form of Exhibit C hereto.

SECTION 9. This Resolution shall take effect upon its adoption.

PASSED, APPROVED, and ADOPTED this 15th day of October 2024 by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:

City of San Jacinto
______________________________
Phil Ayala, Mayor
ATTEST:

Julia Espinoza, City Clerk

3.A.6.a
Packet Pg. 159 Attachment: CFD 2003-1 Annex. No. 71 - Resolution 4045 of Intention (CFD 2003-1 Annex 71 - DR Horton T38339 ROI 4045) Resolution No. 4045

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )ss

CITY OF SAN JACINTO )
I, Julia Espinoza, City Clerk of the City of San Jacinto, DO HEREBY CERTIFY that the foregoing Resolution No. 4045 was passed, approved, and adopted at the Regular Meeting of the San Jacinto City Council held on the 15th day of October 2024.

AYES:

NAYS:

ABSENT:

ABSTAIN:

WITNESS MY HAND AND OFFICIAL SEAL this 15TH day of October 2024. ______________________________
Julia Espinoza, City Clerk
City of San Jacinto

3.A.6.a
Packet Pg. 160 Attachment: CFD 2003-1 Annex. No. 71 - Resolution 4045 of Intention (CFD 2003-1 Annex 71 - DR Horton T38339 ROI 4045) Resolution No. 4045

EXHIBIT A
City of San Jacinto
Community Facilities District No. 2003-1
Annexation No. 71

ANNEXATION MAP

3.A.6.a
Packet Pg. 161 Attachment: CFD 2003-1 Annex. No. 71 - Resolution 4045 of Intention (CFD 2003-1 Annex 71 - DR Horton T38339 ROI 4045) Resolution No. 4045

EXHIBIT B
City of San Jacinto
Community Facilities District No. 2003-1
Annexation No. 71

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX

3.A.6.a
Packet Pg. 162 Attachment: CFD 2003-1 Annex. No. 71 - Resolution 4045 of Intention (CFD 2003-1 Annex 71 - DR Horton T38339 ROI 4045) Resolution No. 4045

EXHIBIT C
City of San Jacinto
Community Facilities District No. 2003-1
Annexation No. 71

NOTICE OF PUBLIC

HEARING
NOTICE IS HEREBY GIVEN that at 6:30 p.m. on November 19, 2024, or as soon thereafter as practicable, the City Council of the City of San Jacinto (the “City Council”) will hold a public hearing on the Annexation of territory (“Annexation No. 71”) to City of San Jacinto Community Facilities District No. 2003-1 (the "CFD"), the proposed rate, and method of apportionment of the special tax (the "Special Tax") to be levied on certain property within Annexation No. 71. It is anticipated that the public hearing may be held virtually by teleconference or web conference only. The virtual location will be identified on the agenda, in accordance with the Brown Act, for the meeting during which this public hearing will be conducted. If held in person, the public hearing will be conducted at the Council Chambers, 625 South Pico, San Jacinto, California. Please check the agenda, which will be posted on the City’s website, prior to the meeting for the location of the public hearing and related instructions.

On October 15, 2024, the City Council adopted Resolution No. 4045 (the “Resolution of Intention”) declaring its intention to annex Annexation No. 71 to the CFD pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the California Government Code (the “Act”), and to levy Special Taxes to finance police services, fire protection and suppression services.

The following are types of services to be provided for and financed by Annexation No. 71:
(a) police protection services, including but not limited to criminal justice services and (b) fire protection and suppression services. It is presently intended that the services will be provided, without preference or priority, to the existing territory in the CFD and the territory proposed to be annexed to the CFD.

Except where funds are otherwise available, a special tax sufficient to pay for such services and related incidental expenses authorized by the Act, secured by recordation of a continuing lien against all non-exempt real property in the CFD, will be levied annually within the boundaries of the CFD and Annexation No. 71. Commencing with Fiscal Year 2003-04 a Maximum Special Tax shall be levied as follows: Special Tax A (1) $350 per unit for Single-Family Property; (2) $262.50 per unit for Apartment Property; (3) $0.119 per SF of Floor Area for Non-Retail Commercial/Industrial Property.

Special Tax B (1) $600.00 per unit for Single-Family Property; (2) $450.00 per unit for Apartment Property; (3) $0.204 per SF of Floor Area for Non-Retail

3.A.6.a
Packet Pg. 163 Attachment: CFD 2003-1 Annex. No. 71 - Resolution 4045 of Intention (CFD 2003-1 Annex 71 - DR Horton T38339 ROI 4045) Resolution No. 4045
Commercial/Industrial Property. The Special Tax B is a one-time special tax that shall be collected by the City at the time a building permit for new construction is issued for an Assessor’s Parcel of Taxable Property. For each subsequent fiscal year, the Maximum Special Tax A and Special Tax B shall be increased by the percentage change in the Consumer Price Index with a maximum annual increase of six percent (6.00%) and a minimum increase of two percent (2.00%) of the amount in effect in the previous Fiscal Year.

Any taxpayer who believes that the amount of the Special Tax assigned to a Parcel is in error may file a written notice with the CFD Administrator appealing the levy of the Special Tax. This notice is required to be filed with the CFD Administrator during the fiscal year, the error is believed to have occurred. The City and/or CFD Administrator will then promptly review the appeal and, if necessary, meet with the taxpayer. If the City and/or CFD Administrator verifies that the tax should be changed, the Special Tax levy shall be corrected, and, if applicable, in any case, a credit shall be applied to the Special Tax levied on such parcel in the subsequent fiscal year.

The Special Tax, as levied pursuant to Section D of the Rate and Method of Apportionment, shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the CFD may direct 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 Annexation No. 71 and the CFD, or as otherwise determined appropriate by the City.

The Special Tax shall be levied in perpetuity to fund Public Services provided to Annexation No. 71 of the CFD.

If at least 12 persons have been registered to vote within the territory to be annexed to the CFD for each of the 90 days preceding the close of the public or protest hearing, the vote in the special election shall be by the registered voters of Annexation No. 71 with each voter having one vote. In that event, the special election shall be conducted by the Registrar of Voters of the County of Riverside and shall be held on a date selected by the City Council, and the ballots for the special election shall be distributed to the qualified electors of Annexation No. 71 by mail with return postage prepaid, and the special election shall be conducted as a mail ballot election.

If at the time of the close of the protest hearing less than 12 persons have been registered to vote within the territory of Annexation No. 71, the vote shall be by the landowners of Annexation No. 71, with each landowner of record at the close of the protest hearing having one vote for each acre or portion of an acre of land that he or she owns within Annexation No. 71. In that event, the special election shall be conducted by the City Clerk.

3.A.6.a
Packet Pg. 164 Attachment: CFD 2003-1 Annex. No. 71 - Resolution 4045 of Intention (CFD 2003-1 Annex 71 - DR Horton T38339 ROI 4045) Resolution No. 4045
At the hearing, the testimony of all interested persons, including all taxpayers or persons owning property in the area, for or against the annexation of Annexation No. 71 to the CFD, the extent of Annexation No. 71, the furnishing of a specified type or types of public facilities or services, will be heard. If 50 percent or more of the registered voters residing within the territory proposed to be annexed to the CFD, or the owners of one-half or more of the area of the land in the territory proposed to be annexed to the CFD and not exempt from the Special Tax, file written protests against the annexation of Annexation No. 71 to the CFD, and protests are not withdrawn so as to reduce the value of the protests to less than a majority, no further proceedings to annex Annexation No. 71 to the CFD or to levy the Special Tax shall be taken for a period of one year from the date of the decision of the City Council. If the majority protests of the registered voters or the landowners are only against the furnishing of a specified type or types of facilities or services within Annexation No. 71, or against levying a specified special tax, those types of facilities or services or the specified special tax shall be eliminated from the resolution of annexation. Protests can be delivered or mailed to the City Clerk at 595 S. San Jacinto Avenue, San Jacinto, CA 92583.

All capitalized terms not defined herein shall be as defined in the Resolution of Intention to Annex Territory to the CFD. The complete texts of the Resolution of Intention to Annex Territory to the CFD, the proposed Rate and Method of Apportionment of the Special Tax among parcels of real property in the CFD and Annexation No. 71, and the Boundary Map of Annexation No. 71 are on file in the office of the City Clerk and available for public inspection.

If you have any questions, please call NBS at (800) 676-7516.

Sincerely,
Julia Espinoza, City Clerk
City of San Jacinto

3.A.6.a
Packet Pg. 165 Attachment: CFD 2003-1 Annex. No. 71 - Resolution 4045 of Intention (CFD 2003-1 Annex 71 - DR Horton T38339 ROI 4045)

3.A.6.b
Packet Pg. 166 Attachment: Exhibit A - Annexation Map (CFD 2003-1 Annex 71 - DR Horton T38339 ROI 4045) City of San Jacinto October 30, 2003
Community Facilities District No. 2003-1 Page 1

RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 2003-1

OF THE CITY OF SAN JACINTO
A Special Tax as hereinafter defined shall be levied on all Assessor’s Parcels in Community Facilities District No. 2003-1 of the City of San Jacinto ("CFD No. 2003-1") and collected each Fiscal Year commencing in Fiscal Year 2003-2004, in an amount determined by the Council through the application of the appropriate Special Tax for "Developed Property" as described below. All of the real property in CFD No. 2003-1, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre or Acreage" means the land area of 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, parcel map, condominium plan, 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 following actual or reasonably estimated costs directly related to the administration of CFD No. 2003-1: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the County or otherwise); the costs to the City, CFD No. 2003-1 or any designee thereof of complying with City or CFD No. 2003-1 disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2003-1 or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2003-1 for any other administrative purposes of CFD No. 2003-1, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Apartment Property" means any Assessor's Parcel of Residential Property that consists of a building or buildings comprised of attached residential units available for rental, but not purchase, by the general public and under common management. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor's Parcel number.

3.A.6.c
Packet Pg. 167 Attachment: Exhibit B - Rate and Method of Apportionment of Special Tax (CFD 2003-1 Annex 71 - DR Horton T38339 ROI 4045) City of San Jacinto October 30, 2003
Community Facilities District No. 2003-1 Page 2
"CFD Administrator" means an official of the City, or designee thereof, responsible for calculating the Special Tax Requirement and providing for the levy and collection of the Special Taxes.
"CFD No. 2003-1" means Community Facilities District No. 2003-1 of the City. "City" means the City of San Jacinto.
"Consumer Price Index" means the Consumer Price Index published by the U.S. Bureau of Labor Statistics for "All Urban Consumers" in the Los Angeles - Anaheim - Riverside Area, measured as of the month of December in the calendar year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Consumer Price Index shall be another index as determined by the CFD Administrator that is reasonably comparable to the Consumer Price Index for the City of Los Angeles.
"Council" means the City Council of the City, acting as the legislative body of CFD No. 2003-1.
"County" means the County of Riverside.
"Developed Property" means, for each Fiscal Year, all Taxable Property for which a building permit for new construction was issued after March 1, 2003 and as of March 1 of the previous Fiscal Year.
"Fiscal Year" means the period starting July 1 and ending on the following June 30. "Floor Area" for any Non-Residential Property means the total square footage of the building(s) located on such property, measured from outside wall to outside wall, exclusive of overhangs, porches, patios, carports, or similar spaces attached to the building but generally open on at least two sides. The determination of Floor Area shall be made by reference to the building permit(s) issued for such Assessor’s Parcel. "Land Use Class" means any of the classes listed in Table 1 and Table 2. "Maximum Special Tax" means the Maximum Special Tax A and/or Maximum Special Tax B, as applicable.
"Maximum Special Tax A" means the Maximum Special Tax A, determined in accordance with Section C.1 below, that can be levied in any Fiscal Year on any Assessor’s Parcel. "Maximum Special Tax B" means the Maximum Special Tax B, determined in accordance with Section C.2 below, that can be levied on any Assessor’s Parcel of Taxable Property on a one-time basis, at the time a building permit for new construction is issued for such Assessor’s Parcel.
"Non-Residential Property" means all Assessor’s Parcels for which a building permit(s) was issued for a non-residential use.

3.A.6.c
Packet Pg. 168 Attachment: Exhibit B - Rate and Method of Apportionment of Special Tax (CFD 2003-1 Annex 71 - DR Horton T38339 ROI 4045) City of San Jacinto October 30, 2003
Community Facilities District No. 2003-1 Page 3
"Non-Retail Commercial/Industrial Property" means all Assessor’s Parcels of Developed Property that are considered Non-Residential Property and that are not Retail Commercial Property.
"Property Owner Association Property" means, for each Fiscal Year, any Assessor’s Parcel within the boundaries of CFD No. 2003-1 that was owned by or irrevocably offered for dedication to a property owner association, including any master or sub-association, as of January 1 of the previous Fiscal Year.
"Proportionately" means that the ratio of the actual Special Tax A levy to the Maximum Special Tax A is equal for all Assessor’s Parcels of Developed Property. "Public Property" means, for each Fiscal Year, (i) any property within the boundaries of CFD No. 2003-1 that was owned by or irrevocably offered for dedication to the federal government, the State, the City or any other public agency as of January 1 of the previous Fiscal Year; provided however that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with its use; or (ii) any property within the boundaries of CFD No. 2003-1 that was encumbered, as of January 1 of the previous Fiscal Year, by an unmanned utility easement making impractical its utilization for other than the purpose set forth in the easement.
"Residential Property" means all Assessor’s Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units.
"Retail Commercial Property" means all Assessor’s Parcels of Non-Residential Property for which the building permit was issued for a retail sales tax generating use or which is being used primarily for a retail sales tax generating use, as determined by the CFD Administrator. However, if the land use of an Assessor’s Parcel changes, and such Assessor’s Parcel no longer generates retail sales tax, such Assessor’s Parcel shall no longer be considered Retail Commercial Property and shall be classified and taxed according to its use, as determined by the CFD Administrator.
"Single Family Property" means all Assessor’s Parcels of Residential Property for which building permits have been issued for detached residential units, excluding Apartment Property.
"Special Tax" means the Special Tax A and/or Special Tax B, as applicable. "Special Tax A" means the annual special tax to be levied in each Fiscal Year on each Assessor's Parcel of Developed Property to fund the Special Tax Requirement. "Special Tax B" means the one-time Special Tax which is paid directly to the City at the time a building permit for new construction is issued for an Assessor’s Parcel of Taxable Property.

3.A.6.c
Packet Pg. 169 Attachment: Exhibit B - Rate and Method of Apportionment of Special Tax (CFD 2003-1 Annex 71 - DR Horton T38339 ROI 4045) City of San Jacinto October 30, 2003
Community Facilities District No. 2003-1 Page 4
"Special Tax Requirement" means that amount required in any Fiscal Year to meet the needs of CFD No. 2003-1 to: (i) pay for fire protection and suppression services (ii) pay for police protection services (iii) pay Administrative Expenses; less (iv) a credit for any funds available to reduce the annual Special Tax levy, as determined by the CFD Administrator. "State" means the State of California.
"Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No. 2003-1 which are not exempt from the Special Tax pursuant to law or Section E below. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property.

B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, all Taxable Property within CFD No. 2003-1 shall be classified as Developed Property or Undeveloped Property and shall be subject to Special Taxes in accordance with the rate and method of apportionment determined pursuant to Section C.

Residential Property shall be assigned to Land Use Classes 1 and 2 based on the type of structure located on the Assessor's Parcel. Non-Retail Commercial/Industrial Property shall be assigned to Land Use Class 3.

C. MAXIMUM SPECIAL TAX RATE

1. Special Tax A
The Special Tax A is an annual Special Tax that shall be levied on Developed Property to fund the Special Tax Requirement.
a. Developed Property
(i) Maximum Special Tax A
The Maximum Special Tax A for Fiscal Year 2003-2004 for each Land Use Class is shown below in Table 1.

3.A.6.c
Packet Pg. 170 Attachment: Exhibit B - Rate and Method of Apportionment of Special Tax (CFD 2003-1 Annex 71 - DR Horton T38339 ROI 4045) City of San Jacinto October 30, 2003
Community Facilities District No. 2003-1 Page 5
TABLE 1
Maximum Special Tax A for Developed Property
For Fiscal Year 2003-2004
Community Facilities District No. 2003-1
Land Use Class Description Maximum Special Tax A
1 Single Family Property $350 per unit
2 Apartment Property $262.50 per unit
3 Non-Retail
Commercial/Industrial Property $0.119 per SF of Floor Area (ii) Increase in the Maximum Special Tax A
On each July 1, commencing on July 1, 2004, the Maximum Special Tax A shall be increased based on the percentage change in the Consumer Price Index with a maximum annual increase of six percent (6%) and a minimum annual increase of two percent (2%) per Fiscal Year.
(iii) Multiple Land Use Classes
In some instances an Assessor’s Parcel of Developed Property may contain more than one Land Use Class. 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.
b. Undeveloped Property

No Special Tax A shall be levied on Undeveloped Property.

3.A.6.c
Packet Pg. 171 Attachment: Exhibit B - Rate and Method of Apportionment of Special Tax (CFD 2003-1 Annex 71 - DR Horton T38339 ROI 4045) City of San Jacinto October 30, 2003
Community Facilities District No. 2003-1 Page 6

2. Special Tax B
The Special Tax B is a one-time Special Tax that shall be paid directly to the City at the time a building permit for new construction is issued for an Assessor’s Parcel of Taxable Property.
a. Maximum Special Tax B
The Maximum Special Tax B for Fiscal Year 2003-2004 for each Land Use Class is shown below in Table 2.

TABLE 2
Maximum Special Tax B
For Fiscal Year 2003-2004
Community Facilities District No. 2003-1
Land Use Class Description Maximum Special Tax B
1 Single Family Property $600 per unit
2 Apartment Property $450 per unit
3 Non-Retail
Commercial/Industrial
Property
$0.204 per SF of Floor Area
b. Increase in the Maximum Special Tax B
On each July 1, commencing on July 1, 2004, the Maximum Special Tax B shall be increased based on the percentage change in the Consumer Price Index with a maximum annual increase of six percent (6%) and a minimum annual increase of two percent (2%) per Fiscal Year.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX

1. Special Tax A
Commencing with Fiscal Year 2003-2004 and for each following Fiscal Year, the Council shall determine the Special Tax Requirement. The Council shall levy the Special Tax A until the amount of Special Taxes equals the Special Tax Requirement.

The Special Tax A shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Maximum Special Tax A as needed to satisfy the Special Tax Requirement.

3.A.6.c
Packet Pg. 172 Attachment: Exhibit B - Rate and Method of Apportionment of Special Tax (CFD 2003-1 Annex 71 - DR Horton T38339 ROI 4045) City of San Jacinto October 30, 2003
Community Facilities District No. 2003-1 Page 7
Notwithstanding the above, under no circumstances will the Special Tax A levied against any Assessor’s Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent as a consequence of delinquency or default by the owner of any other Assessor’s Parcel within CFD No. 2003-1.

2. Special Tax B
Commencing with Fiscal Year 2003-04 and for each following Fiscal Year, the Council shall levy the Special Tax B on each Assessor’s Parcel that is subject to the Special Tax B at 100% of the applicable Maximum Special Tax B. The Special Tax B shall be collected by the City at the time a building permit for new construction is issued for an Assessor’s Parcel of Taxable Property.

E. EXEMPTIONS
No Special Tax shall be levied on Retail Commercial Property, Property Owner Association Property or Public Property. However, should an Assessor’s Parcel no longer be classified as Retail Commercial Property, Property Owner Association Property or Public Property, its tax-exempt status will be revoked.

F. APPEALS AND INTERPRETATIONS
Any landowner or resident may file a written appeal of the Special Tax on his/her property with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall eliminate or reduce the Special Tax on the appellant’s property and/or provide a refund to the appellant. If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has 30 days in which to appeal to the Council by filing a written notice of appeal with the City Clerk, provided that the appellant is current in his/her payments of Special Taxes. The second appeal must specify the reasons for its disagreement with the CFD Administrator’s determination.

Interpretations may be made by the Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment.

3.A.6.c
Packet Pg. 173 Attachment: Exhibit B - Rate and Method of Apportionment of Special Tax (CFD 2003-1 Annex 71 - DR Horton T38339 ROI 4045) City of San Jacinto October 30, 2003
Community Facilities District No. 2003-1 Page 8
G. MANNER OF COLLECTION
The Special Tax A shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that in Fiscal Year 2004-05 and each Fiscal Year thereafter, CFD No. 2003-1 may directly bill the Special Tax A, may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act. Commencing in Fiscal Year 2003-04, the Special Tax B shall be paid directly to the City.

H. TERM OF SPECIAL TAX
The Special Tax A and Special Tax B shall be levied as long as necessary to fund items (i) and (ii) of the Special Tax Requirement.

K:\Clients2\San Jacinto\Mello\Police&Fire CFD\RMA\servicesrma9.doc

3.A.6.c
Packet Pg. 174 Attachment: Exhibit B - Rate and Method of Apportionment of Special Tax (CFD 2003-1 Annex 71 - DR Horton T38339 ROI 4045)

EXHIBIT B

CITY OF JACINTO
COMMUNITY FACILITIES DISTRICT NO. 2003-1

MAXIMUM SPECIAL TAX A FOR

DEVELOPED PROPERTY
Land Use
Class Description Fiscal Year 2003-04 Maximum Special Tax A [1] 1 Single Family Property $350.00 per unit
2 Apartment Property $262.50 per unit
3 Non-Retail Commercial/Industrial
Property $0.119 per SF of Floor Area
[1] On each July 1, commencing July 1, 2004, the Maximum Special Tax A for Developed Property shall be increased by the percentage change in the Consumer Price Index with a maximum annual increase of six percent (6.00%) and a minimum increase of two percent (2.00%) of the amount in effect in the previous Fiscal Year.

3.A.6.c
Packet Pg. 175 Attachment: Exhibit B - Rate and Method of Apportionment of Special Tax (CFD 2003-1 Annex 71 - DR Horton T38339 ROI 4045)

EXHIBIT C

CITY OF JACINTO
COMMUNITY FACILITIES DISTRICT NO. 2003-1

MAXIMUM SPECIAL TAX B
Land Use
Class Description Fiscal Year 2003-04 Maximum Special Tax B [1] 1 Single Family Property $600.00 per unit
2 Apartment Property $450.00 per unit
3 Non-Retail Commercial/Industrial
Property $0.204 per SF of Floor Area
[1] On each July 1, commencing July 1, 2004, the Maximum Special Tax B for property where a building permit has been issued shall be increased by the percentage change in the Consumer Price Index with a maximum annual increase of six percent (6.00%) and a minimum increase of two percent (2.00%) of the amount in effect in the previous Fiscal Year.

3.A.6.c
Packet Pg. 176 Attachment: Exhibit B - Rate and Method of Apportionment of Special Tax (CFD 2003-1 Annex 71 - DR Horton T38339 ROI 4045) October 15, 2024
TO: City Council
REQUESTED BY: Stuart McKibbin, City Engineer
APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: Parcel Map 38245
RECOMMENDATION:

Staff recommends the City Council take the following actions:

1. Authorize the City Manager to execute the Monumentation Deposit Agreement;

2. Approve Parcel Map 38245; and

3. Authorize the Mayor to Sign the subdivision map.

DISCUSSION:

Parcel Map 38245 proposes to subdivide one underlying parcel into two parcels. The site owned by DMSD Cajun Properties, LLC, a Delaware Limited Liability Company, is generally located on the south side of Ramona Expressway approximately 250 feet west of State Street.

The parcel map complies in all respects with the provisions of the Subdivision Map Act and applicable municipal ordinances. All necessary conditions of approval have been satisfied, and departmental clearances have been obtained to record the parcel map. The parcel map is substantially consistent with the tentative parcel map approved by the City Council on August 22, 2023.

The City Engineer reviewed the parcel map and recommends Council approval.

FISCAL IMPACT:

The applicant paid the necessary fees and deposits to prepare the parcel map for recordation and provide documentation.

There is no fiscal impact to the City of San Jacinto.

ATTACHMENTS:

Parcel Map
Monumentation Deposit Agreement
ATTACHMENTS:

Monumentation Agreement
Parcel Map No. 38245

3.A.7
Packet Pg. 177

MONUMENTATION DEPOSIT AGREEMENT
(Drafted: 10-10-24)
1 Monumentation Deposit Agreement
Monument Security. To guarantee payment to the engineer or surveyor for the setting of all subdivision boundaries, lot corner, and street centerline monuments for Parcel Map 38245 in compliance with the applicable provisions of the City’s Municipal and/or Development Code (“Subdivision Monuments”), Developer shall deposit cash with the City in the amount of [___________________________________________________] ($[________]), which sum shall not be less than one hundred percent (100%) of the cost of setting the Subdivision Monuments as determined by the City Engineer. Said cash deposit may be released by written authorization of the City Engineer after all required Subdivision Monuments are accepted by the City Engineer, City has received written acknowledgement of payment in full from the engineer or surveyor who set the Subdivision Monuments, and provided Developer is not in default of any provision of this Agreement or condition of approval for Parcel Map 38245.

3.A.7.a
Packet Pg. 178 Attachment: Monumentation Agreement (Parcel Map 38245)

MONUMENTATION DEPOSIT AGREEMENT
(Drafted: 10-10-24)
2 SIGNATURE PAGE TO

MONUMENTATION DEPOSIT AGREEMENT
PARCEL/TRACT NO. 38245

CITY OF SAN JACINTO
a California municipal corporation
By: ___________________________
Robert A. Johnson, City Manager
City of San Jacinto
Dated: _____________________, 2024
ATTEST:

DMSD Cajun Properties, LLC, a
Delaware Limited Liability Company
By: _____________________________
(signature)
Its: __________________________
Dated: _____________________, 2024
By: ___________________________
(signature)
___________________________
Julia Espinoza, City Clerk
City of San Jacinto
By: _____________________________
(signature)
Its: _____________________________
Dated: _____________________, 2024
Approved as to Form:
___________________________
Craig Hayes
City Attorney
NOTE: DEVELOPER'S SIGNATURES SHALL BE DULY NOTARIZED,

AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED

AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF

INCORPORATION, OR OTHER RULES OR REGULATIONS
APPLICABLE TO DEVELOPER'S BUSINESS ENTITY.

3.A.7.a
Packet Pg. 179 Attachment: Monumentation Agreement (Parcel Map 38245)

3.A.7.b
Packet Pg. 180 Attachment: Parcel Map No. 38245 (Parcel Map 38245)

3.A.7.b
Packet Pg. 181
Attachment: Parcel Map No. 38245 (Parcel Map 38245)

3.A.7.b
Packet Pg. 182 Attachment: Parcel Map No. 38245 (Parcel Map 38245) October 15, 2024
TO: City Council
REQUESTED BY: Erika Gomez, Finance Director
APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: Continuation of Cannabis Tax Rates Discussion
RECOMMENDATION:

Staff recommends that the City Council provide direction to staff regarding the Cannabis Business Tax.

BACKGROUND:

In November 2016, the citizens of San Jacinto overwhelmingly approved Measure AA, authorizing the City Council to impose taxes on commercial cannabis businesses of up to $50 per square foot for cultivation and manufacturing space and 15% of gross receipts (sales). Measure AA did not explicitly authorize or permit the cultivation or sale of cannabis, but rather posed this question:

In the event future State or local law permits marijuana [cannabis] activities to operate in the City of San Jacinto, shall the City enact a tax on marijuana activities of up to $50 per square foot of space utilized for marijuana cultivation or manufacturing, and up to 15% of the gross receipts from marijuana and related products, generating approximately $1,250,000 annually to pay for general City services, such as police, fire, and parks, until ended by voters? Measure AA was approved, with nearly 68% of voters in favor compared to 32% in opposition.

In addition to establishing the maximum tax rate for cannabis-related activities, Measure AA also included Ordinance 16-08, which established Chapter 3.32 – Cannabis/Marijuana Business Tax, added to Title 3 – Revenue and Finance, of the San Jacinto Municipal Code. Following the adoption of Measure AA, the City Council adopted Ordinance 16-16, establishing the following tax rates consistent with Measure AA and Ordinance 16-08:

1. Fifteen cents ($0.15) for each one dollar ($1.00) of gross receipts or fractional part thereof on any retail sale of marijuana, marijuana accessories, or marijuana products (as defined in Section 3.32.030(C)); and

2. Ten dollars ($10.00) per square foot of space utilized in connection with the distribution, transport, and any other commercial activity licensed under Division 10 of the Business and Professions Code, whether related to cannabis, cannabis-infused products, or other cannabis-related products (as defined in Section 3.32.030(E)), other than retail sale of said products.

3. Fifteen dollars ($15.00) per square foot of space utilized in connection with the outdoor cultivation of cannabis within the jurisdiction.

4.1 Packet Pg. 183

4. Fifteen dollars ($15.00) per square foot of space utilized in connection with the testing of any type of marijuana within the jurisdiction.

5. Twenty-five dollars ($25.00) per square foot of space utilized in connection with the indoor cultivation of cannabis within the jurisdiction.

6. Twenty-five dollars ($25.00) per square foot of space utilized in connection with the manufacturing of marijuana of any type within the jurisdiction.

For clarity, it's important to note that during the initial processing of cannabis-related applications and ballot measures, the term "Marijuana" was used. However, as the industry evolved and legal frameworks were refined, the terminology shifted to "Cannabis" to better align with its scientific nomenclature and to avoid the negative connotations historically associated with the term "Marijuana." This change reflects a broader effort to adopt more accurate and respectful language in legal and regulatory contexts. For the purposes of this report, Marijuana and Cannabis should be considered the same product, as the two are used interchangeably to reflect the terminology in effect at the time.

Also, on the November 2016 ballot was Proposition 64 (Adult Use of Marijuana Act [“AUMA”]), which, as approved by 57% of votes, legalized the adult recreational use of cannabis by persons 21 years or older.

In April 2017, the City Council approved Ordinance 17-02 authorizing and establishing development standards for the commercial cultivation of marijuana within the IL, Light Industrial Zones of the City. Ordinance 17-02 only permitted Commercial Marijuana Cultivation as defined as “cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, labeling, transportation, distribution, delivery or wholesale sale of marijuana and marijuana products, including but not limited to medical, commercial and recreational marijuana and marijuana products” and did not allow for the commercial sale or distribution of marijuana.

Ordinance 17-02 allowed the City Council to limit the number of indoor and outdoor cultivation facilities and initially elected for three of each, for a total of six citywide. In September 2017, the City Council adopted Resolution No. 3680, increasing the number of facilities to eight each, for a total of 16 citywide as most of the licenses had been claimed, but none constructed.

In early 2018, the City Council requested an update on the status of the various licenses, as none had made progress to start operating and many were starting to use the licenses as a commodity, preventing other businesses that may have had the financial wherewithal to actually construct and operate a facility.

In January 2019, the City Council directed staff to evaluate and update the cannabis regulations to reduce or eliminate some of the extraneous regulations while identifying opportunities for streamlining as well as to better align the local regulations with state requirements.

On June 4, 2019, the City Council adopted Ordinances 19-10, 19-11, and 19-12 to provide a comprehensive update to the cannabis regulatory framework and Resolution 3755, establishing the new tax rates for non-retail cannabis uses and businesses. Ordinance 19-10 amended Title 17 of the Municipal Code (Development Code) to, among other things, authorize the establishment

4.1 Packet Pg. 184
of Dispensaries and Microbusinesses, thereby allowing retail sales for the first time within the City.

Over the past few months, there have been requests from some dispensary owners and their employees to revisit and reduce the cannabis retail tax from 15% to a lower amount consistent with current rates in other Riverside County Cities. These comments have been received in both form letters (the same letter used multiple times by different operators) as well as a few public speakers.

At the August 20, 2024, City Council meeting, Councilmember Hawkins requested that an item be brought to the Council to discuss the tax rate to determine if the rates should be reduced.

At the October 1, 2024, meeting, City staff presented a report to the City Council that outlined the history of cannabis in the city, provided a comparison with the tax rates in other jurisdictions, and estimated the potential impacts on the City's budget if the rates were to be reduced. After reviewing the report, the Council voted 4-1 in favor of advancing a resolution to reduce the Cannabis Business Tax on dispensaries and microbusinesses to 8% of gross receipts. The Council also requested additional information, including a detailed analysis of budgetary impacts and quarterly data, to be presented concurrently with the resolution.

DISCUSSION:

Limitations on the Number of Dispensaries
When the City initially permitted cultivation uses and imposed a limit on the number of licenses, these licenses were awarded on a first-come, first-served basis. This approach created several unforeseen challenges. Firstly, while early applicants secured their licenses, there was little to no incentive for them to commence operations promptly. As a result, the City did not benefit from the expected tax revenue, as many of these license holders delayed opening their businesses.

Furthermore, these licenses quickly became valuable commodities, with holders "selling" them to higher bidders rather than establishing their operations. This practice led to a secondary market for licenses, complicating the regulatory landscape. Some license holders would circumvent the system by temporarily adding a new owner to the license, only to later reduce their ownership stake to 1%, effectively transferring control of the business without jeopardizing the license.

Given these past experiences, imposing a limit on the number of dispensaries could lead to similar issues. Dispensaries currently operating within the City would gain an unfair advantage as they already hold licenses, potentially stifling competition and innovation. To avoid repeating these challenges, the City is proposing to let the market naturally determine the appropriate number of dispensaries. This approach promotes fair competition, ensures a more dynamic market, and better aligns with the City’s regulatory goals.

Taxation Structure for Retail Cannabis

4.1 Packet Pg. 185
The taxation of retail cannabis within the City is part of a broader system that includes both state and local taxes, each playing a crucial role in the regulation and revenue generation associated with the legal cannabis market. While state-level taxes establish a foundational structure, the City’s tax policies significantly impact how cannabis businesses operate locally.

At the state level, cannabis sales are subject to a 15% excise tax on the gross receipts of all cannabis products sold at retail. This excise tax is now required to be included as a separate line item on the receipt at the point of sale, ensuring transparency for consumers regarding the amount being paid toward this specific tax.

Locally, the City imposes a 15% business tax on the gross sales of cannabis businesses operating within the City. Unlike the state excise tax, the City's business tax is not added as a separate charge to consumers but is instead absorbed by the businesses themselves. This means that cannabis businesses must account for this tax within their overall pricing strategies, impacting profit margins and potentially influencing the final price of products available to consumers.

In addition to these cannabis-specific taxes, cannabis transactions in the City are also subject to California’s standard state sales tax, which currently stands at 8.75% for San Jacinto. This sales tax is applied uniformly across most goods and services sold within the state, including cannabis.

Of this 8.75%, the City directly receives 2%, which includes 1% from the Bradley-Burns uniform local sales tax and an additional 1% from the voter-approved Measure V. However, for the purposes of this discussion, sales tax revenue is not included in the analysis of City revenues, as it is not unique to cannabis and applies to all taxable goods sold within the City, but is included for clarification and background.

This taxation structure, while complex, is vital for supporting the local regulatory framework.

The revenue generated from these taxes is used to fund a variety of public programs and services at both the state and local levels, including public health initiatives, enforcement of cannabis regulations, and community development projects. Within the City, the revenue from the business tax contributes directly to local services and infrastructure, reinforcing the City’s commitment to responsibly managing the legal cannabis market.

SB 1059
At the October 1 meeting, a dispensary owner raised concerns about the legality of using a gross receipts-based tax model. The owner asserted that as of September 28, 2024, it is illegal for a city to charge a cannabis business tax based on gross receipts. Upon further analysis, it has been determined that gross receipts are a legal basis for taxation. The law simply seeks to clarify what can be included in the definition of gross receipts. The relevant code section states:

SECTION 1. Section 16005 is added to the Business and Professions Code to read:
16005. (a) A city shall not include in the definition of gross receipts, for purposes of any local tax or fee imposed by the city on a cannabis retailer licensed under Division 10 (commencing with Section 26000), the amount of any cannabis excise tax imposed under Section 34011.2 of, or any sales and use taxes imposed under Part 1 (commencing with Section 6001) of, Part 1.5

4.1 Packet Pg. 186
(commencing with Section 7200) of, or Part 1.6 (commencing with Section 7251) of, Division 2 of the Revenue and Taxation Code, or Section 35 of Article XIII of the California Constitution. (b) For purposes of this section, city includes a charter city and a city and county.

The City’s method for determining gross receipts has been compliant with applicable regulations since the commencement of dispensary operations in San Jacinto. In compliance with SB 1059 and previously established practice, the City does not include the State’s cannabis excise tax or sales and use taxes when determining gross receipts to calculate the local business tax.

State Excise Tax

1. Cannabis Excise Tax (Effective January 1, 2018):
a. The cannabis excise tax of 15%, became effective on January 1, 2018. This tax has been in place for several years and applies to the purchase of cannabis or cannabis products. It is important to note that this tax itself has not changed.

2. Before January 1, 2023:
a. Cannabis retailers paid the excise tax to distributors for the cannabis they purchased. Distributors were responsible for calculating and collecting this tax based on the average market price.
b. When retailers sold cannabis to their customers, they were required to collect the excise tax from the customer, but this tax was already included in the price. The tax didn’t need to be itemized on the receipt. Instead, the receipt included a statement saying, "The cannabis excise taxes are included in the total amount of this invoice."

3. After January 1, 2023:
a. The way the tax is collected changed. Retailers now collect the excise tax directly from customers at the point of sale. The distributor is no longer responsible for collecting this tax from the retailer.

So, while some are under the impression that a new tax took effect on January 1, 2023, this is incorrect. The tax itself didn’t change; only the method of collection did. Retailers now handle remittance to the CDTFA directly, rather than the distributor.

This change streamlines the process but doesn’t introduce a new tax. It was effected through the passage of AB 195, a tax reform bill intended to provide tax relief to the industry. In addition to the changes discussed, AB 195 also eliminated the 15% state cultivation tax. AB-195’s changes, therefore, not only reduced taxes for the industry overall, but also alleviated some of the compliance inefficiencies created by California’s former cannabis tax regime.

Retail Cannabis Tax Gross Receipts in the City
The financial data below highlights the strong performance of cannabis dispensaries in the City, with revenue reaching an all-time quarterly high in the fourth quarter of fiscal year 2024. As demonstrated in the accompanying table, the cannabis sector continues to experience ongoing

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consumer demand and market stability.

FY Quarter Gross Receipts
2020/2021 3 491,140.00
4 2,716,020.00
2021/2022 1 4,662,333.33
2 4,831,440.07
3 4,919,426.13
4 4,746,055.00
2022/2023 1 4,232,658.93
2 3,939,840.00
3 3,553,940.47
4 3,628,845.13
2023/2024 1 4,086,407.13
2 4,989,887.00
3 4,653,600.00
4 5,166,438.00
Grand Total 56,618,031.20
It is important to note that declining sales are typically the first sign of a business in distress. A downward trend in revenue often points to underlying issues such as decreased consumer interest, rising competition, or operational inefficiencies. These challenges can eventually lead to more severe financial problems, including cash flow shortages and potential business closures.

However, the data shows no such decline in San Jacinto. Instead, the revenue figures presented indicate a resilient market.

Use of Cannabis Retail Business Taxes
The Cannabis Business Tax is a General Tax and is not earmarked or set aside for specific uses.

Instead, it is General Fund Revenue, which is used to pay for general city services. The adopted FY24/25 budget included $39,495,823 of projected recurring revenue, including $3,879,134 from the Cannabis Business Tax. This projected revenue is comprised of retail and non-retail taxes, with retail accounting for $2,779,444 and non-retail accounting for the remaining $1,099,690. Cannabis Business Tax Revenue generated by retail sales makes up 7.04% of the General Fund’s recurring revenue budget.

At the City Council’s request, the preceding information has been provided for evaluation in conjunction with the matter of reducing the tax. Some of the options for reduction and their impacts are presented below:

Option 1 – Do nothing
Option 1 is the “Do Nothing” option which would retain the existing 15% Retail Cannabis Business Tax. This would be least impactful to the City’s finances and operations.

4.1 Packet Pg. 188
Option 2 – Maintain 15% Tax Rate with Deduction for CDTFA Excise Tax Option 2 would maintain the current tax rate of 15% but provide a deduction to gross receipts for the CDTFA Excise Tax. This change would reduce city revenues by an estimated $416,917 annually, resulting in an effective tax rate of 12.75%. This is roughly the cost of operating the Economic Development Department.

Option 3 – Reduce to 12% Tax Rate
Option 3 would reduce the retail tax rate to 12%. This change would reduce city revenues by an estimated $555,889 annually. This is roughly the cost of operating the City Council and City Attorney Departments combined.

Option 4 – Reduce to 10% Tax Rate
Option 4 would reduce the retail tax rate to 10%. This change would reduce city revenues by an estimated $926,481 annually. This is roughly the cost of a Fire Engine or Vactor truck.

Option 5 – Reduce to 8% Tax Rate
Option 5 would reduce the retail tax rate to 8%. This change would reduce city revenues by an estimated $1,297,074 annually. This is roughly the cost of operating the Community Development Department (Planning, Building & Safety, and Code Enforcement).

The City Council requested staff to draft a resolution that would reduce the Cannabis Business Tax on microbusinesses and dispensaries to 8%. This rate is the median tax rate of jurisdictions provided in the sample at the October 1, 2024, City Council meeting. The resolution includes an effective date of January 1, 2025.

Staff recommends that the City Council consider the information and provide direction regarding the Cannabis Business Tax.

FISCAL IMPACT:

A reduction in the tax rate to 8% would reduce General Fund revenues by approximately $1,297,074 annually. If the presented resolution is approved, Staff would return to request direction from the City Council regarding which services or projects to cut from the approved FY 24/25 budget.

ATTACHMENTS:

San Jacinto - Resolution Setting Cannabis Tax Rate-c1

4.1 Packet Pg. 189
24438.00000\42780034.1
RESOLUTION NO. ______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN JACINTO, CALIFORNIA SETTING THE TAX RATES ON

CANNABIS ACTIVITIES OPERATING WITHIN THE CITY OF
SAN JACINTO.

WHEREAS, on November 8, 2016, the voters of the City of San Jacinto (“City”) approved the adoption of Ordinance 16-08, adding Chapter 3.32 to the San Jacinto Municipal Code to establish a general tax on cannabis activities operating within the City of San Jacinto should such activities be permitted in the City; and
WHEREAS, Section 3.32.010 of the San Jacinto Municipal Code authorizes a general tax on cannabis/ activities at the maximum voter-approved rate of up to fifteen (15) cents for each $1.00 of gross receipts or fractional part thereof, generated by such activities; and WHEREAS, Section 3.32.050 of the San Jacinto Municipal Code authorizes the City Council to impose this general tax at lower rates than the voter-approved maximum without a further vote of the People; and
WHEREAS, on January 3, 2017, the City Council adopted Ordinance 16-16 which set the current tax rates; and
WHEREAS, on June 18, 2019, the City Council passed and adopted Ordinance 19-12 which amended Chapter 3.32 including removing the taxation rates from Chapter 3.32 and authorizing the City Council to establish tax rates by resolution; and WHEREAS, on June 4, 2019, pursuant to the authority set forth in Section 3.32.050 of the San Jacinto Municipal Code, the City Council authorized by Resolution No. 3755 the imposition of a general tax on cannabis activities operating within the City of San Jacinto at the following rates based on the proposed Land Use Permit pursuant to Title 17 of the San Jacinto Municipal Code:

1. Dispensary (Adult Recreational or Medical): Fifteen cents ($0.15) for each one dollar ($1.00) of gross receipts or fractional part thereof on any retail sale of cannabis or cannabis products (as defined in Section 3.32.030).

2. Outdoor Cultivation: Five dollars ($5.00) per square foot of cannabis related activity licenses under a state license as certified by a Certified Civil or Professional Engineer.

Such area shall be calculated by enclosing the extreme limits of all cannabis associated activities within the site (cultivation, processing, and distribution) within a single continuous perimeter composed of the no more than eight lines intersecting at right angles.

3. Indoor: Cultivation, Distribution, Manufacturing, and Testing Laboratories: Ten dollars ($10.00) per square foot of gross building footprint utilized for any cannabis

4.1.a
Packet Pg. 190 Attachment: San Jacinto - Resolution Setting Cannabis Tax Rate-c1 (Continuation of Cannabis Tax Rates Discussion) 24438.00000\42780034.1
related activity (including ancillary office and other administrative areas) excluding retail sales (see #1 above - Dispensary).

4. Microbusinesses: Fifteen cents ($0.15) for each one dollar ($1.00) of gross receipts or fractional part thereof on any retail sale of cannabis or cannabis products PLUS Ten dollars ($10.00) per square foot of gross building footprint utilized for any cannabis related activity (including ancillary office and other administrative areas) excluding retail sales.

NOW, THEREFORE, the City Council of the City of San Jacinto hereby finds, determines, and resolves as follows:

SECTION 1. The recitals set forth above are true and correct and are incorporated into this Resolution by this reference.

SECTION 2. Pursuant to the authority set forth in Section 3.32.050 of the San Jacinto Municipal Code, the City Council hereby authorizes the imposition of a general tax on cannabis activities operating within the City of San Jacinto at the following rates for a Dispensary and Microbusinesses as defined in Title 17 of the San Jacinto Municipal Code:
• Dispensary (Adult Recreational or Medical): Eight cents ($0.08) for each one dollar ($1.00) of gross receipts or fractional part thereof on any retail sale of cannabis or cannabis products (as defined in Section 3.32.030). • Microbusinesses: Eight cents ($0.08) for each one dollar ($1.00) of gross receipts or fractional part thereof on any retail sale of cannabis or cannabis products PLUS Ten dollars ($10.00) per square foot of gross building footprint utilized for any cannabis related activity (including ancillary office and other administrative areas) excluding retail sales.

SECTION 3. Except as otherwise amended herein, all provisions of Chapter 3.32 of the San Jacinto Municipal Code shall apply to the taxation of cannabis activities operating in the City of San Jacinto.

SECTION 4. Pursuant to Section 3.32.015 of the San Jacinto Municipal Code, the City Council may, by future Resolution, adjust the general tax rates set forth herein, upwardly or downwardly, without a further vote of the People; provided that the adjusted rates are no higher than the voter-approved maximum rates set forth in Section 3.32.010.

SECTION 5. This Resolution supersedes and voids all prior resolutions and other Council actions which are inconsistent with its terms.

SECTION 6. If any section, subsection, sentence, clause, phrase or word of this Resolution is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution. The City Council hereby declares that it would have adopted this Resolution, and each

4.1.a
Packet Pg. 191 Attachment: San Jacinto - Resolution Setting Cannabis Tax Rate-c1 (Continuation of Cannabis Tax Rates Discussion) 24438.00000\42780034.1
and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion or the Resolution would be subsequently declared invalid or unconstitutional.

SECTION 7. This Resolution shall be effective as of January 1, 2025. The Clerk shall certify the adoption of this Resolution.

PASSED, APPROVED AND ADOPTED this 15th day of October, 2024, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

CITY OF SAN JACINTO:
________________________
Phil Ayala, Mayor
ATTEST:
_________________________
Julia Espinoza, City Clerk
APPROVED AS TO FORM:

BEST, BEST & KRIEGER LLP
____________________________
Craig P. Hayes, City Attorney

4.1.a
Packet Pg. 192 Attachment: San Jacinto - Resolution Setting Cannabis Tax Rate-c1 (Continuation of Cannabis Tax Rates Discussion) 24438.00000\42780034.1

CERTIFICATION

STATE OF CALIFORNIA)
COUNTY OF RIVERSIDE) ss

CITY OF SAN JACINTO)
I, Julia Espinoza, City Clerk of the City of San Jacinto , DO HEREBY CERTIFY that the foregoing Resolution __ was passed, approved, and adopted the Regular Meeting of the San Jacinto City Council held on the 15th day of October, 2024, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

WITNESS MY HAND AND OFFICIAL SEAL this 15th day of October, 2024 _____________________________
Julia Espinoza, City Clerk

4.1.a
Packet Pg. 193 Attachment: San Jacinto - Resolution Setting Cannabis Tax Rate-c1 (Continuation of Cannabis Tax Rates Discussion) October 15, 2024
TO: City Council
REQUESTED BY: Craig Hayes,
APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: Mayor and Mayor Pro Tem Rotation Policy Options RECOMMENDATION:

Staff recommends that the City Council review and discuss the mayoral rotation policy options in this staff report and either:

1. Make amendments to the City’s mayoral rotation policy by adopting either Option No. 1 or Option No. 2 discussed in this staff report by resolution to memorialize the amendment; or

2. Keep the current selection process (Option No. 3); or

3. Provide direction to staff and bring this item back at a later date for further discussion (Option No. 4).

DISCUSSION:

At September 3, 2024, City Council meeting, the City Council discussed changing the mayoral rotation policy. After discussing different possible options, the City Council voted 3-2 (with Councilmembers Ruiz and Ledezma and Mayor Pro Tem Vandever voting in favor and Mayor Ayala and Councilmember Hawkins voting against) to keep the current selection process and revisit the item after the upcoming election. At the September 18, 2024, City Council Meeting, Mayor Pro Tem Vandever requested that this item be brought before the City Council for further discussion.

Based on the discussion of the different options at the September 3, 2024, City Council meeting, the City Attorney’s office prepared two draft resolutions that reflect those discussions of two possible options that appeared to be desired by members of the City Council (Option No. 1 and Option No. 2 below). If the City Council desires to make amendments to the City’s mayoral rotation policy based on either Option No. 1 or Option No. 2, the City Council may adopt either of the resolutions at tonight’s meeting.

No resolution is needed if the City Council desires to keep the current selection process (Option No. 3) or provide direction to staff and bring this item back at a later date for further discussion (Option No. 4).

1. Options and Procedures for Selecting the Mayor
A. State Law.

Government Code Section 36801 grants the City Council the authority to select the mayor:
“[t]he city council shall meet at the meeting at which the declaration of the election results for a

4.2 Packet Pg. 194
general municipal election is made…and, following the declaration of the election results and the installation of elected officials, choose one of its number as mayor, and one of its number as mayor pro tempore.”
State law does not prescribe a particular method that the City Council must use to select a mayor and mayor pro tempore. Rather, the City Council may select the mayor and mayor pro tempore in the manner it chooses.

B. Current Selection Process.

Section 3.1 of the City of San Jacinto Council Orientation and Procedure Handbook (the “Handbook”) provides the current procedures for selecting the Mayor and Mayor Pro Tem. Per the Handbook, the City Council appoints a Mayor and Mayor Pro Tem through nomination by any member of the City Council. Following these nominations, each nomination must be confirmed by three (3) or more affirmative votes. In the event that no person receives three (3) or more votes for either one of the offices, the process must be repeated, with the two persons receiving the highest number of votes previously being the only nominees for that office seeking to be filled. If, after repeating the selection process, no person receives three (3) affirmative votes for the office, the City Council has the option to either repeat the selection process until the officer has been duly selected or continue the selection to the next regular meeting of the City Council.

The pertinent sections of Section 3.1 of the Handbook are set forth below.

3.1 Presiding Officer.
(b) The Council shall reorganize each year. In even-numbered years, the Council shall reorganize itself by selecting the Mayor and Mayor Pro Tem from its members, at the first regular meeting following the official canvass of results of the election, but no later than the fourth Tuesday following the date of said general and municipal election. In odd-numbered years, at the first meeting in December, the Council shall reorganize by choosing one member as Mayor and another as Mayor Pro Tem. In the event the Mayor or Mayor Pro Tem cannot fulfill their term, the Council may choose a Mayor or Mayor Pro Tem to serve the remainder of the current term at any meeting of the City Council.
(d) Nomination for the office of Mayor or Mayor Pro Tem may be made by any member of the Council. Each selection shall be by three (3) or more affirmative votes. In the event that no person receives three or more votes in the selection process for one or both offices, the selection process shall be repeated immediately provided, however, that the two persons receiving the highest number of votes in the preceding selection process shall be the only nominees for the office to be filled. If, upon repeating the selection process for Mayor or Mayor Pro Tem, no person has yet received three affirmative votes for such office, the Council may either repeat the selection process until the officer has been duly selected or may continue the selection to the next regular meeting of the Council.
(e) Voting in the selection of Mayor and Mayor Pro Tem shall be by voice vote administered by the City Clerk.

C. Alternative Methods for Selecting a Mayor and Mayor Pro Tem – Option No. 1 and

4.2 Packet Pg. 195
Option No. 2.

Instead of the foregoing, the following are two (2) options for the City Council to consider as it pertains to the selection process for the offices of the Mayor and Mayor Pro Tem. The options are based on feedback from members of the City Council at the September 3, 2024, City Council meeting. The City Attorney’s office has prepared resolutions attached to this staff report if the City Council desires to adopt one of these options tonight.

1. Option No. 1 - After the 2024 election, appoint the current Mayor Pro Tem as Mayor and the most senior member of the City Council as Mayor Pro Tem, and then the selection process would default to a rotational system.

Option No. 1 would allow, following the next election, the City Council to appoint the current Mayor Pro Tem as Mayor, and the most senior City Council member as Mayor Pro Tem.

Following these appointments, the selection process would then default to a rotational system where, after each election, the current Mayor Pro Tem would become the Mayor and the Councilmember at the top of the rotation list would become Mayor Pro Tem.

Highlights of the rotational system include the following:
• The position of Mayor is filled by the current Mayor Pro Tem. • The Councilmember at the top of the rotation list would become Mayor Pro Tem. • The senior incumbent Councilmember would be at the top of the rotation list, followed by other incumbent Councilmembers in order of seniority. • In a non-election year, the previous Mayor shall be placed in the rotation below other Councilmembers, even if the previous Mayor is more senior than the other Councilmembers.
• Upon the election or appointment of a new Councilmember, the new individual shall be placed at the bottom of the rotation list. In the event of an election of more than one new individual to the City Council, the ranking of order of the new Councilmember(s) shall be in relation to the number of votes received at the election.
• Following an election, the previous incumbent Mayor shall be placed in the rotation above the newly elected Councilmember(s) and below other incumbent Councilmembers, including incumbent Councilmembers who are reelected.

2. Option No. 2 - After the 2024 election, appoint the current Mayor Pro Tem as Mayor and the most senior member of the City Council who has never served as Mayor or Mayor Pro Tem as Mayor Pro Tem. Then the selection process would default to a rotational system.

Option No. 2 would allow, following the next election, the City Council to appoint the current Mayor Pro Tem as Mayor, and the most senior City Councilmember, who has never served as Mayor or Mayor Pro Tem, as Mayor Pro Tem. Following these appointments, the selection process would then default to a rotational system where, after each election, the current Mayor Pro Tem would become the Mayor and the Councilmember at the top of the rotation list would become Mayor Pro Tem.

Highlights of the rotational system include the following:
• The position of Mayor is filled by the current Mayor Pro Tem.

4.2 Packet Pg. 196
• The Councilmember at the top of the rotation list would become Mayor Pro Tem. • The senior incumbent Councilmember would be at the top of the rotation list, followed by other incumbent Council members in order of seniority. • In a non-election year, the previous Mayor shall be placed in the rotation below other Councilmembers, even if the previous Mayor is more senior than the other Councilmembers.
• Upon the election or appointment of a new Councilmember, the new individual shall be placed at the bottom of the rotation list. In the event of an election of more than one new individual to the City Council, the ranking of order of the new Councilmember(s) shall be in relation to the number of votes received at the election.
• Following an election, the previous incumbent Mayor shall be placed in the rotation above the newly elected Councilmember(s) and below other incumbent Councilmembers, including incumbent Councilmembers who are reelected.

D. Option No. 3 - Make No Changes to the Current Selection Process and Continue Following the Procedures Currently in Place
Option No. 3 would make no changes to the City’s current selection process for the offices of both Mayor and Mayor Pro Tem, and the City Council would continue following the procedures in Section 3.1 of the Handbook. As discussed in the section above, this process would involve a nomination for Mayor and Mayor Pro Tem by any member of the City Council, and each nomination being confirmed by three (3) or more affirmative votes.

E. Option No. 4 - Provide direction to staff and bring this item back at a later date for further discussion
Option No. 4 would have the City Council provide direction to staff and bring this item back at a later date for further discussion.

FISCAL IMPACT:

No Fiscal Impact.

ATTACHMENTS:

Resolution No. 4042 - Option #1
Resolution No. 4042 - Option #2

4.2 Packet Pg. 197
24438.00000\42754803.2
Resolution No. 4042
STATE OF CALIFORNIA ) RESOLUTION NO. 4042
COUNTY OF RIVERSIDE ) ss

CITY OF SAN JACINTO )

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SAN JACINTO, CALIFORNIA, AMENDING SECTION 3.1 OF

THE SAN JACINTO COUNCIL ORIENTATION AND

PROCEDURE HANDBOOK TO ADOPT A POLICY FOR THE

ROTATION OF MAYOR AND MAYOR PRO TEM
WHEREAS, California Government Code Section 36801 provides that the Mayor and Mayor Pro Tem of a general law city are chosen by the City Council; and WHEREAS, Government Code Section 36801 does not require nor provide for any particular procedure for selecting the Mayor and Mayor Pro Tem; and WHEREAS, Section 3.1 of the City of San Jacinto Council Orientation and Procedure Handbook sets forth the current policies and procedures for the nomination and election of the Mayor and the Mayor Pro Tem by the City Council; and WHEREAS, on October 15, 2024, the City Council considered possible alternatives to the current nomination and election procedure, which included the appointment of a Mayor and Mayor Pro Tem based on a rotational system; and WHEREAS, the City Council desires to implement a new policy for the appointment of a Mayor and Mayor Pro Tem based on a rotational system, whereby after the next election, the current Mayor Pro Tem shall be appointed as Mayor, and the most senior member of the City Council shall be appointed as Mayor Pro Tem. Following these appointments, the selection process would default to a rotational system where, after each election, the current Mayor Pro Tem would become the Mayor, and the next Councilmember at the top of the rotation list would become Mayor Pro Tem.

NOW, THEREFORE, the City Council of the City of San Jacinto hereby finds, determines, and resolves as follows:

SECTION 1. The recitals set forth above are true and correct and are incorporated into this resolution by this reference.

SECTION 2. The City hereby amends Section 3.1 of the City of San Jacinto Council Orientation and Procedure Handbook and adopts a new policy for the rotation of Mayor and Mayor Pro Tem, as set forth in Exhibit “A,” attached hereto.

SECTION 3. This Resolution shall be effective as of the date of adoption. The Clerk shall certify the adoption of this Resolution.

4.2.a
Packet Pg. 198 Attachment: Resolution No. 4042 - Option #1 (Mayor and Mayor Pro Tem Rotation Policy Options) 24438.00000\42754803.2
Resolution No. 4042
PASSED, APPROVED, AND ADOPTED this 15th day of October 2024 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

CITY OF SAN JACINTO:
________________________
Phil Ayala, Mayor
ATTEST:
_________________________
Julia Espinoza, City Clerk
APPROVED AS TO FORM:

BEST, BEST & KRIEGER LLP
____________________________
Craig P. Hayes, City Attorney

4.2.a
Packet Pg. 199 Attachment: Resolution No. 4042 - Option #1 (Mayor and Mayor Pro Tem Rotation Policy Options) 24438.00000\42754803.2
Resolution No. 4042

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss

CITY OF SAN JACINTO )
I, Julia Espinoza, City Clerk of the City of San Jacinto, DO HEREBY CERTIFY that the foregoing Resolution 4042 was passed, approved, and adopted by the Regular Meeting of the San Jacinto City Council held on the 15th day of October 2024 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

WITNESS MY HAND AND OFFICIAL SEAL this 15th day of October 2024 _____________________________
Julia Espinoza, City Clerk

4.2.a
Packet Pg. 200 Attachment: Resolution No. 4042 - Option #1 (Mayor and Mayor Pro Tem Rotation Policy Options) 24438.00000\42754803.2
Resolution No. 4042
EXHIBIT “A”
AMENDED SECTION 3.1 OF THE CITY OF SAN JACINTO

COUNCIL ORIENTATION AND PROCEDURE HANDBOOK

3. PRESIDING OFFICER

3.1 Presiding Officer
(a) The Mayor shall be the Presiding Officer at all meetings of the Council.

In the absence of the Mayor, the Mayor Pro Tem shall preside. In the absence of both the Mayor and Mayor Pro Tem, the Council shall select a temporary presiding officer to serve until the arrival of the Mayor or the Mayor Pro Tem or until adjournment, whichever first occurs. (b) The Council shall reorganize each year. In even-numbered years, the Council shall reorganize itself by appointing the Mayor and Mayor Pro Tem from its members pursuant to the selection procedure established by this section, at the first regular meeting following the official canvass of results of the election, but no later than the fourth Tuesday following the date of said general and municipal election.

In odd numbered years, at the first meeting in December the Council shall reorganize by appointing one of its members as Mayor and another of its members as Mayor Pro Tem pursuant to the selection procedure established by this section.

In the event the Mayor or Mayor Pro Tem cannot fulfill their term, a Mayor or Mayor Pro Tem shall be appointed pursuant to the selection procedure established by this section to serve the remainder of the current term at any meeting of the City Council.
(c) The City Clerk shall preside at the portion of the Council meeting to appoint the Mayor and Mayor Pro Tem.
(d) Notwithstanding anything in this Section 3.1, when appointing the Mayor and Mayor Pro Tem at the first regular meeting following the official canvass of results of the November 2024 general election, the position of Mayor shall be filled by the current Mayor Pro Tem. The most senior member of the City Council shall be appointed as Mayor Pro Tem. (e) Following appointments of the Mayor and Mayor Pro Tem after the November 2024 general election, the selection process defaults to a rotational system of who will serve as Mayor and Mayor Pro Tem based, to the extent possible, on the following rules and policies:

4.2.a
Packet Pg. 201 Attachment: Resolution No. 4042 - Option #1 (Mayor and Mayor Pro Tem Rotation Policy Options) 24438.00000\42754803.2
Resolution No. 4042
a. The position of Mayor shall be filled by the current Mayor Pro Tem. If the Mayor Pro Tem is no longer on the Council, the Council Member at the top of the rotation list would become Mayor.
b. The Council Member at the top of the rotation list would become Mayor Pro Tem.
c. The senior incumbent Council Member would be at the top of the rotation list followed by other incumbent Council Members in order of seniority.
d. In a non-election year, the previous Mayor shall be placed in the rotation below other Council Members, even if the previous Mayor is more senior than the other Council Members.
e. Upon the election or appointment of a new Council Member, the new individual shall be placed at the bottom of the rotation list. In the event of an election of more than one new individual to the City Council, the ranking of order of the new Council Member(s) shall be in relation to the number of votes received at the election.

The individual with the greatest number of votes shall be placed immediately below more senior Council Members including incumbent Council Members who are reelected. The individual with the second greatest number of votes shall be placed below the first and so on. Following an election, the previous incumbent Mayor shall be placed in the rotation above the newly elected Council Member(s) and below other incumbent Councilmembers, including incumbent Councilmembers who are reelected.

Incumbent Councilmembers shall stay in their position in the rotation relative to other incumbents, even after reelection. f. In instances where there are four or five new individuals elected to the City Council, those individuals filling positions with shorter terms remaining shall be placed at the top of the rotation list in order of votes received at the election. Council Members with longer terms shall be placed below the shorter-term Council Members on the rotation list in order of votes received at the election.
g. In the event of a tie in seniority between two incumbent Council Members of the City Council, the tie shall be broken by flipping a coin.
(f) Voting in the selection of Mayor and Mayor Pro Tem shall be by voice vote administered by the City Clerk.
(g) The Mayor and Mayor Pro Tem shall serve at the will of the City Council and until their successors have been duly appointed pursuant to this subsection.

4.2.a
Packet Pg. 202 Attachment: Resolution No. 4042 - Option #1 (Mayor and Mayor Pro Tem Rotation Policy Options) 24438.00000\42754803.2
Resolution No. 4042
(h) The offices of Mayor and/or Mayor Pro Tem shall be deemed vacant upon the happening of any of the following:
(1) The death of the holder of such office;
(2) The loss or resignation from membership on the Council the holder of such office;
(3) The acceptance by the Council of the resignation from such office by the holder thereof;
(4) The majority of Council Members desire to make a change; (5) The recall of the holder of such office.

At its first regular meeting after the occurrence of a vacancy created by one of the foregoing events, the Council shall appoint a successor to such office, pursuant to the selection procedure established by this section.

4.2.a
Packet Pg. 203 Attachment: Resolution No. 4042 - Option #1 (Mayor and Mayor Pro Tem Rotation Policy Options) 24438.00000\42754870.2
Resolution No. 4042
STATE OF CALIFORNIA ) RESOLUTION NO. 4042
COUNTY OF RIVERSIDE ) ss

CITY OF SAN JACINTO )

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SAN JACINTO, CALIFORNIA, AMENDING SECTION 3.1

OF THE SAN JACINTO COUNCIL ORIENTATION AND

PROCEDURE HANDBOOK TO ADOPT A POLICY FOR

THE ROTATION OF MAYOR AND MAYOR PRO TEM
WHEREAS, California Government Code Section 36801 provides that the Mayor and Mayor Pro Tem of a general law city are chosen by the City Council; and WHEREAS, Government Code Section 36801 does not require nor provide for any particular procedure for selecting the Mayor and Mayor Pro Tem; and WHEREAS, Section 3.1 of the City of San Jacinto Council Orientation and Procedure Handbook sets forth the current policies and procedures for the nomination and election of the Mayor and the Mayor Pro Tem by the City Council; and WHEREAS, on October 15, 2024, the City Council considered possible alternatives to the current nomination and election procedure, which included the appointment of a Mayor and Mayor Pro Tem based on a rotational system; and WHEREAS, the City Council desires to implement a new policy for the appointment of a Mayor and Mayor Pro Tem based on a rotational system, whereby after the next election, the current Mayor Pro Tem shall be appointed as Mayor, and the most senior incumbent member of the City Council who has never served as Mayor or Mayor Pro Tem shall be appointed as Mayor Pro Tem. Following these appointments, the selection process would then default to a rotational system where, after each election, the current Mayor Pro Tem would become the Mayor, and the next Councilmember at the top of the rotation list would become Mayor Pro Tem.

NOW, THEREFORE, the City Council of the City of San Jacinto hereby finds, determines, and resolves as follows:

SECTION 1. The recitals set forth above are true and correct and are incorporated into this resolution by this reference.

SECTION 2. The City hereby amends Section 3.1 the City of San Jacinto Council Orientation and Procedure Handbook and adopts a new policy for the rotation of Mayor and Mayor Pro Tem, as set forth in Exhibit “A,” attached hereto.

SECTION 3. This Resolution shall be effective as of the date of adoption. The Clerk shall certify the adoption of this Resolution.

4.2.b
Packet Pg. 204 Attachment: Resolution No. 4042 - Option #2 (Mayor and Mayor Pro Tem Rotation Policy Options) 24438.00000\42754870.2
Resolution No. 4042
PASSED, APPROVED, AND ADOPTED this 15th day of October 2024, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

CITY OF SAN JACINTO:
________________________
Phil Ayala, Mayor
ATTEST:
_________________________
Julia Espinoza, City Clerk
APPROVED AS TO FORM:

BEST, BEST & KRIEGER LLP
____________________________
Craig P. Hayes, City Attorney

4.2.b
Packet Pg. 205 Attachment: Resolution No. 4042 - Option #2 (Mayor and Mayor Pro Tem Rotation Policy Options) 24438.00000\42754870.2
Resolution No. 4042

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss

CITY OF SAN JACINTO )
I, Julia Espinoza, City Clerk of the City of San Jacinto, DO HEREBY CERTIFY that the foregoing Resolution 4042 was passed, approved, and adopted by the Regular Meeting of the San Jacinto City Council held on the 15th day of October 2024 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

WITNESS MY HAND AND OFFICIAL SEAL this 15th day of October 2024 _____________________________
Julia Espinoza, City Clerk

4.2.b
Packet Pg. 206 Attachment: Resolution No. 4042 - Option #2 (Mayor and Mayor Pro Tem Rotation Policy Options) 24438.00000\42754870.2
Resolution No. 4042
EXHIBIT “A”
AMENDED SECTION 3.1 OF THE CITY OF SAN JACINTO

COUNCIL ORIENTATION AND PROCEDURE HANDBOOK

3. PRESIDING OFFICER

3.1 Presiding Officer
(a) The Mayor shall be the Presiding Officer at all meetings of the Council.

In the absence of the Mayor, the Mayor Pro Tem shall preside. In the absence of both the Mayor and Mayor Pro Tem, the Council shall select a temporary presiding officer to serve until the arrival of the Mayor or the Mayor Pro Tem or until adjournment, whichever first occurs. (b) The Council shall reorganize each year. In even-numbered years, the Council shall reorganize itself by appointing the Mayor and Mayor Pro Tem from its members pursuant to the selection procedure established by this section at the first regular meeting following the official canvass of results of the election, but no later than the fourth Tuesday following the date of said general and municipal election.

In odd-numbered years, at the first meeting in December the Council shall reorganize by appointing one of its members as Mayor and another of its members as Mayor Pro Tem pursuant to the selection procedure established by this section.

In the event the Mayor or Mayor Pro Tem cannot fulfill their term, a Mayor or Mayor Pro Tem shall be appointed pursuant to the selection procedure established by this section to serve the remainder of the current term at any meeting of the City Council.
(c) The City Clerk shall preside at the portion of the Council meeting to appoint the Mayor and Mayor Pro Tem.
(d) Notwithstanding anything in this Section 3.1, when appointing the Mayor and Mayor Pro Tem at the first regular meeting following the official canvass of results of the November 2024 general election, the position of Mayor shall be filled by the current Mayor Pro Tem. The most senior incumbent member of the City Council, who has never served as Mayor or Mayor Pro Tem, shall be appointed as Mayor Pro Tem. If there is no incumbent member of the City Council who has never served as Mayor or Mayor Pro Tem, the most senior incumbent member of the City Council shall become Mayor Pro Tem.

4.2.b
Packet Pg. 207 Attachment: Resolution No. 4042 - Option #2 (Mayor and Mayor Pro Tem Rotation Policy Options) 24438.00000\42754870.2
Resolution No. 4042
(e) Following appointments of the Mayor and Mayor Pro Tem after the November 2024 general election, the selection process would then default to a rotational system of who will serve as Mayor and Mayor Pro Tem based, to the extent possible, on the following rules and policies:
a. The position of Mayor shall be filled by the current Mayor Pro Tem. If the Mayor Pro Tem is no longer on the Council, the Council Member at the top of the rotation list would become Mayor.
b. The Council Member at the top of the rotation list would become Mayor Pro Tem.
c. The senior incumbent Council Member would be at the top of the rotation list followed by other incumbent Council Members in order of seniority.
d. In a non-election year, the previous Mayor shall be placed in the rotation below other Council Members, even if the previous Mayor is more senior than the other Council Members.
e. Upon the election or appointment of a new Council Member, the new individual shall be placed at the bottom of the rotation list. In the event of an election of more than one new individual to the City Council, the ranking of order of the new Council Member(s) shall be in relation to the number of votes received at the election.

The individual with the greatest number of votes shall be placed immediately below more senior Council Members including incumbent Council Members who are reelected. The individual with the second greatest number of votes shall be placed below the first and so on. Following an election, the previous incumbent Mayor shall be placed in the rotation above the newly elected Council Member(s) and below other incumbent Councilmembers, including incumbent Councilmembers who are reelected.

Incumbent Councilmembers shall stay in their position in the rotation relative to other incumbents, even after reelection. f. In instances where there are four or five new individuals elected to the City Council, those individuals filling positions with shorter terms remaining shall be placed at the top of the rotation list in order of votes received at the election. Councilmembers with longer terms shall be placed below the shorter-term
Councilmembers on the rotation list in order of votes received at the election.
g. In the event of a tie in seniority between two incumbent Councilmembers of the City Council, the tie shall be broken by flipping a coin.
(f) Voting in the selection of Mayor and Mayor Pro Tem shall be by voice vote administered by the City Clerk.

4.2.b
Packet Pg. 208 Attachment: Resolution No. 4042 - Option #2 (Mayor and Mayor Pro Tem Rotation Policy Options) 24438.00000\42754870.2
Resolution No. 4042
(g) The Mayor and Mayor Pro Tem shall serve at the will of the City Council and until their successors have been duly appointed pursuant to subsection (b), (g) and (h) hereof.
(h) The offices of Mayor and/or Mayor Pro Tem shall be deemed vacant upon the happening of any of the following:
(1) The death of the holder of such office;
(2) The loss or resignation from membership on the Council the holder of such office;
(3) The acceptance by the Council of the resignation from such office by the holder thereof;
(4) The majority of Council Members desire to make a change; (5) The recall of the holder of such office.

At its first regular meeting after the occurrence of a vacancy created by one of the foregoing events, the Council shall appoint a successor to such office, pursuant to the selection procedure established by this section.

4.2.b
Packet Pg. 209 Attachment: Resolution No. 4042 - Option #2 (Mayor and Mayor Pro Tem Rotation Policy Options)