Attachment A - Resolution No. 24-102 — Victorville City Council, November 19, 2024

Attachment A

RESOLUTION NO. 24-102

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

VICTORVILLE, CALIFORNIA, ESTABLISHING THE FORMATION OF COMMUNITY FACILITIES DISTRICT NO. 2024 -01 OF THE CITY OF

VICTORVILLE (MUNICIPAL SERVICES) AND A FUTURE ANNEXATION AREA THEREIN ; AUTHORIZING THE LEVY OF SPECIAL TAX ES
THEREOF; CALLING AN ELECTION ; AND APPROVING AND

AUTHORIZING CERTAIN ACTIONS RELATED THERETO

WHEREAS, the City Council (the " City Council ") of the City of Victorville (the "City") has heretofore adopted Resolution No. 2 4-092 stating its intention to form Community Facilities District No. 2024 -01 of the City of Victorville (Municipal Services) ("Community Facilities District No. 2024 -01" or the " District") pursuant to the Mello - Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the California Government Code (the "Act") and identified territory proposed to be annexed to the District in the future pursuant to Section 53339.3 of the Act, designated as the a future annexation area therein (the "Future Annexation Area"); and
WHEREAS, a copy of Resolution No. 24-092 setting forth a description of the proposed boundaries of Community Facilities District No. 2024 -01 and the Future Annexation Area, the services and administrative expenses to be financed by the District, and the rate and method of apportionment of the special tax es proposed to be levied within the District is on file with the City Clerk; and WHEREAS, notice was published and mailed to all landowners of the land proposed to be included within the District as required by law relative to the intention of the City Council to form proposed Community Facilities District No . 2024-01 and to levy special tax A and special tax B (the "Special Taxes") therein to finance the services and administrative expenses described in Resolution No. 24-092; and WHEREAS, on November 19, 2024, th e City Council conducted a noticed public hearing as required by law relative to the proposed formation of Community Facilities District No. 2024-01 and to authorize the levy of the Special Taxes therein; and WHEREAS, at the November 19, 2024, public hearing there was a Community Facilities District Report (“ CFD Report”) filed with the City Council, which contained a description of the services necessary to meet the needs of the District and the Future Annexation Area and an estimate of the cost of such services as required by Section 53321.5 of the Act; and
WHEREAS, at the November 19, 2024, public hearing all persons desiring to be heard on all matters pertaining to the formation of Community Facilities District No. 2024-

01, the designation of the Future Annexation Area and authorize the levy of the Special Taxes were heard and full and fair hearings were held; and WHEREAS, following the public hearing, the City Council determined to authorize the formation of the District and the designation of the Future Annexation Area to finance the types of municipal services (the " Municipal Services ") and the administrative expenses (the " Administrative Expenses") set forth in Exhibit A attached hereto and incorporated herein by this reference , which are described in more detail in the CF D Report attached hereto as Exhibit B and also incorporated herein by this reference; and WHEREAS, at the public hearing evidence was presented to th e City Council on the matters before it, and the proposed Special Taxes to be levied within the District were not precluded by a majority protest of the type described in Section 53324 of the Act, and at the conclusion of the hearing , the City Council was fully advised as to all matters relating to the formation of the District, the designation of the Future Annexation Area , and the levy of the Special Taxes; and
WHEREAS, the City Council has determined, based on a Certificate of Registrar of Voters of the County of San Bernardino on file in the office of the City Clerk, that no registered voters have been residing in the proposed boundaries of Community Facilities District No. 2024-01 for each of the ninety (90) days prior to November 19, 2024 and that the qualified electors in Community Facilities District No. 202 4-01 are the landowners within the District; and
WHEREAS, on the basis of all of the foregoing, th e City Council has determined to proceed with the establishment of Community Facilities District No. 202 4-01 and the designation of the Future Annexation Area and to call an election therein to authorize (i) the levy of Special Taxes pursuant to the rate and method of apportionment of the special tax, as set forth in Exhibit C to Resolution No. 24-092 (the "Rate and Method”), and (ii) the establishment of an appropriations limit for Community Facilities District No. 2024-01.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF VICTORVILLE DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS:

SECTION 1. The above recitals are true and correct and incorporated and made a part of this Resolution by this reference, including any definitions contained therein.

SECTION 2. A community facilities district designated as the "Community Facilities District No. 2024 -01 of the City of Victorville (Municipal Services) " including the Future Annexation Area is hereby established pursuant to the Act.

The City Council hereby finds and determines that all prior proceedings taken with respect to the establishment of the District and the Future Annexation Area were valid and in conformity with the requirements of law, including the Act. This finding is made in accordance with the provisions of Section 53325.1(b) of the Act.

SECTION 3. The boundaries of Community Facilities District No. 2024-01 are established as shown on the map designate d "Boundary Map of Community Facilities District No. 2024-01 (Municipal Services), Tax Zone 01, City of Victorville, County of San Bernardino, State of California” which map is on file in the office of the City Clerk and was recorded pursuant to Sections 3111 and 3113 of the California Streets and Highways Code in the County Book of Maps of Assessment and Community Facilities Districts in the Assessor- County Clerk-Recorder's office of the County of San Bernardino in Book No. 92, Page No. 12 on October 31, 2024 as Instrument No. 2024-0260281. The boundaries of the Future Annexation Area set forth in Resolution No. 24-092 is hereby established.

Parcels within the Future Annexation Area shall be annexed to the District only with the unanimous approval (each, a “ Unanimous Approval”) of the owner or owners of each parcel or parcels to be annexed at the time that such parcel or those parcels are annexed, without any requirement for further public hearings or additional proceedings.

SECTION 4. The types of Municipal Services and Administrative Expenses authorized to be provided for Community Facilities District No. 2024-01 are those set forth in Exhibit A attached hereto. The estimated cost of the Services and Administrative Expenses to be financed is set forth in the CFD Report attached hereto as Exhibit B.

The City Council finds and determines that the proposed Municipal Services are necessary to meet the increased demand that will be placed upon local agencies and public infrastructure as a result of new development within the District and that the Municipal Services to be financed benefit residents of the City and the future residents of the District.

SECTION 5. Except where funds are otherwise available, it is the intention of th e City Council, subject to the approval of the eligible voters of the District, to annually levy Special Taxes at the rates set forth in the Rate and Method on all non -exempt property within the District sufficient to pay for the Municipal Services and the Administrative Expenses. The District expects to incur, and in certain cases has already incurred, Administrative Expenses in connection with the creation of the District, the levying and collecting of the Special Tax es, and the annual administration of the District. The Rate and Method is described in detail in Resolution No. 24-092 and included as Exhibit C to this resolution, and the City Council hereby finds that the Rate and Method contains sufficient detail to allow each landowner within the District to estimate the maximum amount that may be levied against each parcel. As described in greater detail in the CFD Report, which is incorporated by reference herein, the Special Tax es are based on the expected demand that each parcel of real property within Community Facilities District No. 2024-01 will place on the Municipal Services and on the benefit that each parcel will derive from the right to access the Municipal Services and, accordingly, is hereby determined to be reasonable. The Special Tax es shall be levied on each assessor's parcel in accordance with the Rate and Method. The Special Tax es are apportioned to each parcel on the foregoing bases pursuant to Section 53325.3 of the Act and such Special Taxes are not on or based upon the ownership of real property or the assessed

value of real property.

The Victorville City Manager , 14343 Civic Drive, Victorville, CA, 92392, Telephone Number (760) 955 -5029, will be responsible for preparing annually, or authorizing a designee to prepare, a current roll of special tax levy obligations by assessor's parcel number and be responsible for estimating future special tax levies pursuant to Section 53340.2 of the Act.

SECTION 6. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code, a continuing lien to secure each levy of the Special Taxes shall attach to all non-exempt real property in the District and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the Special Tax es by the District ceases.

SECTION 7. Consistent with Section 53325.6 of the Act, the City Council finds and determines that the land within Community Facilities District No. 2024-01, if any, devoted primarily to agricultural, timber or livestock uses and being used for the commercial production of agricultural, timber or livestock products is contiguous to other land within Community Facilities District No. 2024-01 and will be benefited by the Municipal Services proposed to be provided within the District.

SECTION 8. It is hereby further determined that there is no ad valorem property tax currently being levied on property within proposed Community Facilities District No. 2024- 01 for the exclusive purpose of paying for the same services to the territory of Community Facilities District No. 2024-01 as are proposed to be provided by the Municipal Services to be financed by Community Facilities District No. 2024-01.

SECTION 9. Written protests against the establishment of the District and the designation of the Future Annexation Area have not been filed by one -half or more of the registered voters within the boundaries of the District or by the property owners of one -half (1/2) or more of the area of land within the District. The City Council hereby finds that the proposed Special Tax es have not been precluded by a majority protest pursuant to Section 53324 of the Act.

SECTION 10. The date of the election within Community Facilities District No. 202 4-01 shall be November 19, 2024, or such later date as is consented to by the City Clerk and the landowners within Community Facilities District No. 202 4-01. The City Clerk shall conduct the election. Except as otherwise provided by the Act , the election shall be conducted by personally delivered or mailed ballot and, except as otherwise provided by the Act, the election shall be conducted in accordance with the provisions of law regulating elections of the City of Victorville insofar as such provisions are determined by the City Clerk to be applicable.

It is hereby found that there are not more than twelve registered voters within the territory

of Community Facilities District No. 2024-01, and, pursuant to Section 53326 of the Act, each landowner who is the owner of record on the date hereof, or the authorized representative thereof, shall have one vote for each acre or portion thereof that he, she , or it owns within Community Facilities District No. 202 4-01. The voters shall be the landowners of record within Community Facilities District No. 202 4-01 as of November 19, 2024.

SECTION 11. The preparation of the CF D Report is hereby ratified. The CF D Report, as submitted, is hereby approved and was made a part of the record of the public hearing regarding the formation of Community Facilities District No. 2024-01. The CFD Report is ordered to be kept on file with the transcript of these proceedings and open for public inspection.

SECTION 12. This Resolution shall be effective upon its adoption.

SECTION 13. The City Clerk shall certify to the passage and adoption of this Resolution; shall enter the same in the book of original Resolutions of the City; and shall make a minute of passage and adoption thereof in the records of the proceedings of the City Council, in the minutes of the meeting at which this Resolution is passed and adopted.

Exhibit A

TYPES OF SERVICES TO BE FINANCED BY COMMUNITY FACILITIES DISTRICT NO. 2024-01 OF THE CITY OF VICTORVILLE (MUNICIPAL SERVICES)

The services which may be funded with proceeds of the special tax of CFD No. 2024-01, as provided by Section 53313 of the Act, include the following (collectively, the “ Municipal Services”):

I. Operations, maintenance and lighting of parks, parkways, sidewalks, signage, landscaping in public areas, easements or right of way and open space; II. flood and storm protection services;
III. the operation of storm drainage systems;
IV. maintenance of streets and roadways, traffic signals and street lighting; V. graffiti and debris removal from public improvements; VI. public safety services including police, fire protection , fire suppression and code enforcement;
VII. operation of library and recreation programs;
VIII. operation of future museums and cultural facilities; and IX. maintenance and operation of any real property or other tangible property with an estimated useful life of five or more years that is owned by the City of Victorville.

In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses” as said term is defined in the Rate and Method of Apportionment and to establish an operating reserve for the costs of services as determined by the CFD Administrator. Capitalized terms used and not defined herein shall have the meanings set forth in the Rate and Method of Apportionment of Special Tax for CFD No. 2024-01.

Exhibit B
Community Facilities District Report (CFD Report)

Community Facilities District Report
City of Victorville
Community Facilities District No. 2024-01
(Municipal Services)
2016 Series A Special Tax Bonds
November 2024

Table of Contents

Sections
Section 1. Introduction _______________________________________________________ 1 Section 2. Description of Services ______________________________________________ 2 Section 3. Cost Estimate ______________________________________________________ 3 Section 4. Proposed Development ______________________________________________ 4 Section 5. Rate and Method of Apportionment ____________________________________ 5

Appendices
Appendix A. Rate and Method of Apportionment
Appendix B. Boundary Map & Future Annexation Area Boundary Map

1. Introduction

City of Victorville Community Facilities District Report CFD No. 2024-01 1

AGENCY: CITY OF VICTORVILLE

PROJECT: COMMUNITY FACILITIES DISTRICT NO. 2024-01 (MUNICIPAL SERVICES)

TO: CITY COUNCIL

CITY OF VICTORVILLE

SAN BERNARDINO COUNTY

STATE OF CALIFORNIA

Whereas, the City Council of the CITY OF VICTORVILLE, SAN BERNARDINO COUNTY, CALIFORNIA (hereinafter referred to as the “City Council”), did, pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”, being chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, and specifically Section 53321.5 thereof, (the “Act”) expressly order the filing of a written Public Report (the “Report”) for a proposed Community Facilities District No. 2024-01 of the City of Victorville. This Community Facilities District shall be referred to as COMMUNITY FACILITIES DISTRICT NO. 2024-01 (MUNICIPAL SERVICES) OF THE CITY OF VICTORVILLE (hereinafter referred to as the “District” and “CFD No. 2024-01”); and,

Whereas, on October 15, 2024, the City Council adopted Resolution No. 24-092 (the “Resolution”), and the Resolution ordering said Report, did direct that said Report generally contain the following:
 A brief description of the services to be financed by Community Facilities District No. 2024-01;  An estimate setting forth costs of providing such services; NOW, THEREFORE, the undersigned, authorized representative of Webb Municipal Finance, LLC, the appointed Special Tax Consultant and responsible officer or person directed to prepare the Report, pursuant to the provisions of the Act, does hereby submit the following data:

2. Description of Services

City of Victorville Community Facilities District Report CFD No. 2024-01 2

Pursuant to Section 53313 of the Act, the proceeds of any Special Tax levied and collected by CFD No. 2024-01 may be used only to pay for the cost of providing services, and incidental expenses. As defined by the Act, incidental expenses include, but are not limited to, the annual cost associated with determination of the amount of Special Taxes, collection of Special Taxes, payment of Special Taxes, or costs otherwise incurred in order to carry out the authorized purposes of the District.

A general description of the estimated proposed services and incidental expenses for the District is as follows (actual costs of services may change and are eligible to be funded in their entirety):

City of Victorville Services

The types of Services that are proposed to be funded with the proceeds of special taxes levied by CFD No. 2024- 01 consist of services permitted to be financed under the Mello-Roos Community Facilities Act of 1982, as amended, including, without limitation maintenance of parks, parkways, park lighting, sidewalks, signage, landscaping in public areas, easements or right of way and open space, flood and storm protection services, the operation of storm drainage systems, maintenance of streets and roadways, traffic signals and street lighting, graffiti and debris removal from public improvements, public safety services including but not limited to police, fire protection, fire suppression, and code enforcement. All of the services financed must be provided within the boundaries of or for the benefit of CFD No. 2024-01.

Administrative Expenses

The administrative expenses to be paid from the Special Taxes include but are not limited to, the cost of computing of the amount of Special Taxes to be levied and preparing the Annual Special Tax collection schedule, the costs of collecting the Special Taxes, annual reporting requirements associated with applicable federal and state laws and of the Act; the costs associated with responding to public inquiries regarding Special Taxes; the costs associated with the City's annual administration fees and otherwise incurred in order to carry out the authorized purposes of CFD No. 2024-01.

Based upon the preceding, it is my opinion that the services being funded are those that are necessary to meet certain increased demands placed upon the CITY OF VICTORVILLE, as a result of development and/or rehabilitation occurring within the boundaries of the District.

DATED November 19, 2024 WEBB MUNICIPAL FINANCE, LLC

By: _______________________________

SPECIAL TAX CONSULTANT FOR

CITY OF VICTORVILLE

SAN BERNARDINO COUNTY

STATE OF CALIFORNIA

3. Cost Estimate

City of Victorville Community Facilities District Report CFD No. 2024-01 3

1. The initial cost estimate of the Public Safety Services (Special Tax A), including administrative expenses, to be funded through the Special Tax levied and collected for CFD 2024-01 is estimated to be approximately $163,909 based upon current dollars (Fiscal Year 2024-25).

This initial annual cost estimate is also based on the estimated cost per acre of Non-Residential Property – as defined in the Rate and Method of Apportionment. As property is annexed to CFD No. 2024-01, it is expected that the annual cost of providing services will increase proportionately based on the number Units/Acres which will be included in the annexed property. The annual cost of providing such services will also increase by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December for the prior Fiscal Year or (ii) five percent (5%).

2. The initial cost estimate of the Maintenance Services (Special Tax B), including administrative expenses, to be funded through the Special Tax levied and collected for CFD 2024-01 is estimated to be approximately $51,627 based upon current dollars (Fiscal Year 2024-25).

3. Pursuant to Section 53340 of the Act, the proceeds of any special tax levied and collected by CFD 2024-01 may be used only to pay for the cost of the services and incidental expenses. As defined by the Act, incidental expenses include, but are not limited to, the annual costs associated with determination of the amount of special taxes, collection of special taxes, payment of special taxes, or costs otherwise incurred in order to carry out the authorized purposes of the District. The incidental expenses associated with the annual administration of CFD 2024-01 are estimated to be $30,000. However, it is anticipated that the incidental expenses will vary due to inflation and other factors that may not be foreseen today, and the actual incidental expenses may exceed these amounts accordingly.

DATED November 19, 2024 WEBB MUNICIPAL FINANCE, LLC

By: _______________________________

SPECIAL TAX CONSULTANT FOR

CITY OF VICTORVILLE

SAN BERNARDINO COUNTY

STATE OF CALIFORNIA

4. Proposed Development

City of Victorville Community Facilities District Report CFD No. 2024-01 4

1. The boundaries of CFD No. 2024-01 Tax Zone 01 are those properties and parcels where services are authorized to be provided and upon which special taxes may be levied in order to pay for the costs and expenses of said services. A general description of the area within the boundaries of CFD No. 2024-01 is shown on the “Proposed Boundary Map” attached as hereto as Appendix B.

2. Additional properties that are within the boundaries of the annexation map may annex into CFD No. 2024- 01 subsequent to formation of CFD No. 2024-01. The owner of the property to be annexed shall submit a written consent for said annexation to CFD No. 2024-01 and the Council, acting ex-officio as the legislative body of CFD No. 2024-01, shall call a special election as to the imposition of the special tax on said property as required by law. A general description of the boundaries of the territory within which any property may annex to CFD No. 2024-01 and shown on that certain map entitled “Boundaries – Potential Annexation Area of Community Facilities District No. 2024-01 (Municipal Services) of the City of Victorville, County of San Bernardino, State of California,” is attached.

The “Proposed Boundary Map” and “Boundaries – Potential Annexation Area Map” for CFD No. 2024-01 are attached hereto as Appendix B.

5. Rate and Method of Apportionment

City of Victorville Community Facilities District Report CFD No. 2024-01 5

1. The Rate and Method of Apportionment allows each property owner within the proposed District to estimate the annual amount that would be required for payment. The Rate and Method of Apportionment of the Special Tax for the District, established pursuant to these proceedings, is attached hereto as Appendix A (the “Rate and Method of Apportionment”). Special Tax A and Special Tax B will be collected in the same manner and at the same time as ad valorem property taxes and subject to the same penalties and provisions; however, Special Tax A and Special Tax B may be collected at a different time or in a different manner if necessary for CFD No. 2024-01 to meet its financial obligations and may foreclose on delinquent parcels as permitted by the Act.

2. All of the property located within CFD 2024-01, unless exempted by law or by the Rate and Method proposed for CFD 2024-01, shall be taxed for the purpose of providing necessary services to serve the District. The Boundary Map for CFD 2024-01 is attached hereto as Appendix B. Pursuant to Section 53325.3 of the Act, the tax imposed “is a special tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property.” The special tax may be based on the benefit received by property, the cost of making authorized services available or other reasonable basis as determined by the City Council, although the special tax may not be apportioned on an ad valorem basis pursuant to Article XIIIA of the California Constitution.

3. For particulars as to the Rate and Method for CFD 2024-01, see the attached and incorporated Appendix A.

It is my opinion that the Rate and Method, as described above and set forth in Appendix A is fair and reasonable.

This Report has been prepared and consolidated by the Special Tax Consultant, Webb Municipal Finance, LLC, and is herewith submitted to the City Council pursuant to the applicable provisions of the Mello-Roos Community Facilities Act of 1982.

DATED November 19, 2024 WEBBMUNICIPAL FINANCE, LLC

By: _______________________________

SPECIAL TAX CONSULTANT FOR

CITY OF VICTORVILLE

SAN BERNARDINO COUNTY

STATE OF CALIFORNIA

APPENDIX A
Rate and Method of Apportionment

City of Victorville 1
Community Facilities District No. 2024-01 (Municipal Services)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2024-01 (MUNICIPAL SERVICES)

OF THE CITY OF VICTORVILLE

The following sets forth the Rate and Method of Apportionment for the levy and collection of Special Tax A and Special Tax B of Community Facilities District No. 2024-01 (Municipal Services) of the City of Victorville (“CFD No. 2024-01”). A Special Tax A and Special Tax B shall be levied on and collected in CFD No. 2024-01 each Fiscal Year, in an amount determined through the application of the Rate and Method of Apportionment described below. All real property within CFD No. 2024-01, 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

“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator.
“Act” means the Mello-Roos Community Facilities Act of 1982 as amended, being Chapter 2.5 of Part 1, Division 2 of Title 5 of the Government Code of the State of California. “Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation, annexation, and administration of CFD No. 2024-01 including, but not limited to: the costs of computing Special Tax A and Special Tax B and preparing the annual collection schedules (whether by the City or designee thereof or both) for Special Tax A and Special Tax B; the costs to the City, CFD No. 2024-01, or any designee thereof associated with fulfilling the CFD No. 2024-01 disclosure requirements; the costs associated with responding to public inquiries regarding Special Tax A and Special Tax B; the costs of the City, CFD No. 2024-01 or any designee thereof related to an appeal of Special Tax A or Special Tax B; and the City's annual administration fees including payment of a proportional share of salaries and benefits of any City employees and City overhead whose duties are related to the administration and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2024-01 for any other administrative purposes of CFD No. 2024-01, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. “Administrator” means the City Manager of the City of Victorville, or his or her designee. “Annual Special Tax A” means for each Assessor’s Parcel, the Special Tax A actually levied in a given Fiscal Year.
“Annual Special Tax B” means for each Assessor’s Parcel, the Special Tax B actually levied in a given Fiscal Year.
“Approved Property” means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st of preceding the Fiscal Year in which Special Tax A or Special Tax B is being levied, and (ii) that have not been issued a Building Permit on or before June 1st preceding the Fiscal Year in which the Special Taxes are to be levied. “Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of San Bernardino.

City of Victorville 2
Community Facilities District No. 2024-01 (Municipal Services)

“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 that identification number assigned to a parcel by the County Assessor of the County.
“Boundary Map” means a recorded map of the CFD No. 2024-01 which indicates the boundaries of CFD No. 2024-01.
“Building Permit” means the first legal document issued by the City giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include any subsequent building permits issued or changed after the first issuance, as determined by the Administrator.

“Building Square Footage” or “BSF” means the floor area square footage reflected on the original construction Building Permit issued for construction of a building of Non-Residential Property and any Building Square Footage subsequently added to a building of such Taxable Property after issuance of a Building Permit for expansion or renovation of such building. “Calendar Year” means the period commencing January 1 of any year and ending the following December 31.
“CFD” or “CFD No. 2024-01” means the City of Victorville Community Facilities District No. 2024-01 (Municipal Services).
“City” means the City of Victorville, California.
“City Council” means the City Council of the City, acting as the legislative body of CFD No. 2024-01, or its designee.
“Commercial Property” means all Assessor’s Parcels of Non-Residential Property for which a Building Permit(s) has been issued by the City which is primarily used for, but not limited to: retail commercial, service commercial, and office commercial activities, as well as large-scale planned shopping districts serving the local and regional area and population, “big box” retailers, motels/hotels, and public assembly uses, or for any other uses that are consistent with commercial land use designation as determined by the City or Administrator.
“Consumer Price Index” or “CPI” means the index published monthly by the U.S. Department of Labor, Bureau of Labor Statistics for all urban consumers in the Riverside-San Bernardino-Ontario area. In the event this index ceases to be published, the Consumer Price Index shall be another index as determined by the Administrator that is reasonably comparable to the Consumer Price Index for the Riverside-San Bernardino-Ontario area.
“County” means the County of San Bernardino, California. “Developed Property” means all Assessor’s Parcels of Taxable Property that: (i) are included in a Final Map that was recorded prior to January 1st preceding the Fiscal Year in which the Special Taxes are to be levied, and (ii) for which a Building Permit for new construction has been issued on or prior to June 1st preceding the Fiscal Year in which Special Tax A or Special Tax B is being levied. “Exempt Property” means all Assessors’ Parcels designated as being exempt from Special Tax A or Special Tax B as provided for in Section K.

City of Victorville 3
Community Facilities District No. 2024-01 (Municipal Services) “Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots that do not need, and are not expected, to be further subdivided prior to the issue of a Building Permit.
“Fiscal Year” means the period from and including July 1st of any year to and including the following June 30th.
“Heavy Industrial Property” means an Assessor’s Parcel of Non-Residential Property for which a Building Permit(s) has been issued for intense industrial activities, such as manufacturing, materials processing, and any related industrial activities that generate significant impacts such as excessive noise, dust, and other nuisances or for any other uses that are consistent with heavy industrial use designation as determined by the City or Administrator. “Land Use Category” or “LUC” means any of the categories contained in Section B hereof to which an Assessor’s Parcel is assigned consistent with the land use approvals that have been received or proposed for the Assessor’s Parcel as of June 1st preceding the Fiscal Year in which Special Tax A or Special Tax B is being levied.
“Light Industrial Property” means an Assessor’s Parcel of Non-Residential Property for which a Building Permit(s) has been issued for industrial, service-commercial, and related uses including warehousing/distribution, research and development, assembly and light manufacturing, repair facilities, and supporting retail uses either located in industrial and/or business parks or in mixed industrial/business park use areas or for any other uses that are consistent with light industrial use designation as determined by the City or Administrator. The main feature of industrial activities in this category is that they do not require any significant site or structure requirements that are so specialized that would limit future use of the structures and/or site by another industrial activity. “Maintenance Services” means the services permitted under the Act and the formation proceedings with respect to CFD No. 2024-01 including, but not limited to, maintenance of parks, parkways, park lighting, sidewalks, signage, landscaping in public areas, easements or right of way and open space, flood and storm protection services, the operation of storm drainage systems, maintenance of streets and roadways, traffic signals and street lighting, graffiti and debris removal from public improvements contained within the boundaries of CFD No. 2024-01 and the City. “Maximum Special Tax A” means for each Assessor’s Parcel of Taxable Property, the maximum Special Tax A, determined in accordance with Section C that can be levied in any given Fiscal Year on such Assessor’s Parcel.
“Maximum Special Tax B” means for each Assessor’s Parcel of Taxable Property, the maximum amount of Special Tax B, determined in accordance with Section F that can be levied in any given Fiscal Year on such Assessor’s Parcel.
“Multifamily Residential 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 for purchase, by the general public and under common management. “Mixed-Use 1 Property” means all Assessor’s Parcels of Residential or Non-Residential Property for which a Building Permit(s) has been issued by the City which is primarily used for, but not limited to:
mixed use, stand-alone commercial, and stand-alone residential with a density of 1 to 15 dwelling City of Victorville 4
Community Facilities District No. 2024-01 (Municipal Services) units per acre for residential and a FAR of 0.5 for non-residential, or for any other uses that are consistent with a Mixed-Use 1 land use designation as determined by the City or Administrator. “Mixed-Use 2 Property” means all Assessor’s Parcels of Residential or Non-Residential Property for which a Building Permit(s) has been issued by the City which is primarily used for, but not limited to:
mixed use, stand-alone commercial, and stand-alone residential with a density of 15.1 to 30 dwelling units per acre for residential and a FAR of 1.0 for non-residential, or for any other uses that are consistent with a Mixed-Use 2 land use designation as determined by the City or Administrator. “Non-Residential Property” means all Assessor's Parcels of Taxable Property for which a Building Permit(s) was issued for a non-residential use. The Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property.
“Other Non-Residential Property” means an Assessor’s Parcel of Non-Residential Property that is not classified as Commercial Property, Mixed-Use 1 Property, Mixed-Use 2 Property, Public Institution Property, Light Industrial Property or Heavy Industrial Property. “Proportionately” means for Taxable Property that is: (i) Developed Property, that the ratio of the actual Special Tax A or Special Tax B levy to the Maximum Special Tax A or Maximum Special Tax B is the same for all Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax A or Special Tax B levy to the Maximum Special Tax A or Maximum Special Tax B is the same for all Parcels of Approved Property, and (iii) Undeveloped Property that the ratio of the actual Special Tax Levy A or Special Tax Levy B per acre to the Maximum Special Tax A or Maximum Special Tax B per acre is the same for all Parcels of Undeveloped Property. “Public Institution Property” means all Assessor’s Parcels of Residential or Non-Residential Property for which a Building Permit(s) has been issued by the City which is primarily used for, but not limited to: land uses and activities that are predominately used for public purposes or owned or operated by a public entity. Activities within this category include City and County buildings, public and private schools, colleges, and public utilities and city yards, or for any other uses that are consistent with a Public Institution Property land use designation as determined by the City or Administrator. “Public Safety Services" means the services permitted under the Act including, without limitation, police and fire protection, ambulance and paramedic services, and code enforcement provided within the boundaries of CFD No. 2024-01 and the City.
“Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed Residential Units have been constructed or for which Building Permits have been or may be issued for purposes of constructing one or more Residential Units. “Residential Unit” or "R/U" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. “Single Family Residential Property” means any residential property that consists of a building comprised of attached or detached residential units available for purchase or rent by the general public.
"Special Tax(es)" means, individually and collectively, Special Tax A and Special Tax B authorized to be levied within CFD No. 2024-01 pursuant to the Act to fund the Special Tax A Requirement and the Special Tax B Requirement.

City of Victorville 5
Community Facilities District No. 2024-01 (Municipal Services) “Special Tax A” means the special tax authorized to be levied on Taxable Property within CFD No. 2024-01 pursuant to the Act to fund the Special Tax A Requirement. “Special Tax B” means the special tax authorized to be levied on Taxable Property within CFD No. 2024-01 pursuant to the Act to fund the Special Tax B Requirement. "Special Tax A Requirement" means the amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2024-01 for Public Safety Services in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the (i) direct costs for Public Safety Services, (ii) amount necessary to fund an operating reserve for the costs of Public Safety Services as determined by the Administrator, and (iii) Administrative Expenses (apportioned between Special Tax A, and Special Tax B), less (iv) a credit in an amount equal to the Operating Fund Balance for Public Safety Services. Under no circumstances shall the Special Tax A Requirement include funds for Bonds.
"Special Tax B Requirement" means the amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2024-01 for Maintenance Services in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the (i) direct costs for Maintenance Services, (ii) amount necessary to fund an operating reserve for the costs of Maintenance Services as determined by the Administrator, and (iii) Administrative Expenses (apportioned between Special Tax A, and Special Tax B), less (iv) a credit in an amount equal to the Operating Fund Balance for Maintenance Services. Under no circumstances shall the Special Tax B Requirement include funds for Bonds.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2024-01, which are not Exempt Property.
“Taxable Unit” means a Residential Unit, Building Square Footage, or an Acre. "Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax B rates may be levied pursuant to this Rate and Method of Apportionment of Special Tax B. Appendix A identifies the Tax Zone in CFD No. 2024-01 at formation; additional Tax Zones may be created when property is annexed into the CFD.
"Tax Zone 1" means the specific geographic area identified on the CFD Boundary Map as Tax Zone 1. "Tract(s)" means an area of land within a subdivision identified by a particular tract number on a Final Map approved for the subdivision.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property or Approved Property.

B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, beginning with Fiscal Year 2025-26, each Assessor’s Parcel within CFD No. 2024-01 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, or Undeveloped Property. In addition, each Assessor’s Parcel of Developed Property shall further be classified as Single Family Residential Property, Multifamily Residential Property, Commercial Property, Mixed-Use 1 Property, Mixed-Use 2 Property, Public Institution Property, Light Industrial Property, Heavy Industrial Property or Other Non-Residential Property.

City of Victorville 6
Community Facilities District No. 2024-01 (Municipal Services) C. MAXIMUM SPECIAL TAX A
a. Developed Property
(i) Maximum Special Tax A
The Maximum Special Tax A for each Assessor’s Parcel of Developed Property for each Land Use Type is shown in Table 1 below:

TABLE 1

MAXIMUM SPECIAL TAX A RATES

DEVELOPED PROPERTY
Land Use Category Rate
Single Family Residential Property $525.35 per Taxable Unit Multifamily Residential Property $394.00 per Taxable Unit Commercial Property $0.058 per BSF
Mixed-Use 1 Property $0.049 per BSF
Mixed-Use 2 Property $0.040 per BSF
Public Institution Property $0.012 per BSF
Light Industrial Property $0.029 per BSF
Heavy Industrial Property $0.012 per BSF
Other Non-Residential Property $0.042 per BSF

(ii) On each July 1, commencing July 1, 2026, the Maximum Special Tax A for Developed Property for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December of the prior Fiscal Year or (ii) five percent (5%). b. Multiple Land Use Categories
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Land Use Category. 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 each Land Use Types located on that Assessor’s Parcel. c. Approved Property
No Special Tax A shall be levied on Approved Property.
d. Undeveloped Property
No Special Tax A shall be levied on Undeveloped Property.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX A
Commencing with Fiscal Year 2025-26 and for each following Fiscal Year, the City shall levy Special Tax A at up to 100% of the applicable Maximum Special Tax A, Proportionately on each Assessor’s Parcel of Developed Property until the amount of Special Tax A equals the Special Tax A Requirement.

E. PREPAYMENT OF SPECIAL TAX A
Special Tax A cannot be prepaid.

F. MAXIMUM SPECIAL TAX B
City of Victorville 7
Community Facilities District No. 2024-01 (Municipal Services) For purposes of determining the applicable Maximum Special Tax B for Assessor’s Parcels of Developed Property and Approved Property which are classified as Residential Property, all such Assessor’s Parcels shall be assigned the number of Residential Unit(s) constructed or to be constructed thereon as specified in or shown on the Building Permit(s) issued or Final Map as determined by the Administrator. For Parcels of Undeveloped Property zoned for development of single family attached or multifamily units, the number of Residential Units shall be determined by referencing the condominium plan, apartment plan, site plan or other development plan, or by assigning the maximum allowable units permitted based on the underlying zoning for the Parcel. Once a single family attached or multifamily building or buildings have been built on an Assessor's Parcel, the Administrator shall determine the actual number of Residential Units contained within the building or buildings, and the Special Tax B levied against the Parcel in the next Fiscal Year shall be calculated by multiplying the actual number of Residential Units by the Maximum Special Tax B per Residential Unit identified for the Tract in Table 2 below or as included in Appendix A as each Annexation occurs.

For purposes of determining the applicable Maximum Special Tax B for Assessor’s Parcels of Developed Property and Approved Property which are classified as Non-Residential Property, all such Assessor’s Parcels shall be assigned the number of Building Square Footage or Acres as shown on the Final Map as determined by the Administrator. Once the Administrator determines the actual number of Building Square Footage or Acres for the Assessor’s Parcel, the Special Tax B levied against the Parcel in the next Fiscal Year shall be calculated by multiplying the number of Building Square Footage or Acres by the Maximum Special Tax B per Taxable Unit identified for the Tax Zone in Table 2 below or as included in Appendix A as each Annexation occurs. a. Developed Property
(i) Maximum Special Tax B
The Maximum Special Tax B for each Assessor’s Parcel of Developed Property is shown in Table 2 and shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2024-01, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B for the Tax Zones annexed and included in Appendix A.

The Maximum Special Tax for Fiscal Year 2025-2026 within Tax Zone 1 is identified in Table 2 below:

TABLE 2

MAXIMUM SPECIAL TAX B RATES

DEVELOPED PROPERTY

Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax B
1 14525 Single Family Residential Property R/U $165.47
1 14525 Multifamily Residential Property R/U $165.47
1 14525 Non-Residential Property Acre $1,311.46

(ii) Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2026, the Maximum Special Tax B for Developed Property for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December for the prior Fiscal Year or (ii) five percent (5%).
(iii) Multiple Land Use Categories
City of Victorville 8
Community Facilities District No. 2024-01 (Municipal Services) In some instances, an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax B that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax B that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final.
b. Approved Property
The Maximum Special Tax B for each Assessor’s Parcel of Approved Property shown in Table 3 shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2024-01, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax B for Fiscal Year 2025-2026 within the Tax Zone is identified in Table 3 below:

TABLE 3

MAXIMUM SPECIAL B TAX RATES

APPROVED PROPERTY

(i) On each July 1, commencing on July 1, 2026 the Maximum Special Tax B for Approved Property for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December for the prior Fiscal Year or (ii) five percent (5%). c. Undeveloped Property
The Maximum Special Tax B for each Assessor’s Parcel of Undeveloped Property shown in Table 4 shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2024-01, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax B for Fiscal Year 2025-2026 within the Tax Zone is identified in Table 4 below:

TABLE 4

MAXIMUM SPECIAL TAX B RATES

UNDEVELOPED PROPERTY

Tax Zone Tracts Taxable Unit Maximum Special Tax B
1 14525 Acre $1,311.46

(i) On each July 1, commencing on July 1, 2026 the Maximum Special Tax B for Undeveloped Property for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December for the prior Fiscal Year or (ii) five percent (5%).

City of Victorville 9
Community Facilities District No. 2024-01 (Municipal Services) G. METHOD OF APPORTIONMENT OF SPECIAL TAX B
Commencing with Fiscal Year 2025-26 and for each following Fiscal Year, the City Council shall determine the Special Tax B Requirement and shall levy the Special Tax B on all Assessor’s Parcels of Taxable Property until the aggregate amount of Special Tax B equals the Special Tax B Requirement.

The Special Tax B shall be levied for each Fiscal Year as follows:

First: The Special Tax B shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax B to satisfy the Special Tax B Requirement;

Second: If additional moneys are needed to satisfy the Special Tax B Requirement after the first step has been completed, the Special Tax B shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax B for Approved Property;

Third: If additional monies are needed to satisfy the Special Tax B Requirement after the first two steps has been completed, the Special Tax B shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax B for Undeveloped Property.

H. PREPAYMENT OF SPECIAL TAX B
Special Tax B cannot be prepaid.

I. FUTURE ANNEXATIONS
It is anticipated that additional properties will be annexed to CFD No. 2024-01 from time to time. As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Maintenance Services. Based on this analysis, the property to be annexed, pursuant to California Government Code section 53339 et seq. will be assigned to the appropriate Maximum Special Tax rate(s) for the Tax Zone when annexed and included in Appendix A.

J. TERMINATION OF SPECIAL TAX A AND SPECIAL TAX B
Special Tax A shall be levied as long as needed to meet the Special Tax A Requirement as determined at the sole discretion of the City Council. Special Tax B shall be levied as long as needed to meet the Special Tax B Requirement as determined at the sole discretion of the City Council.

K. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2024-01, any Assessor’s Parcel in any of the following categories; (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) Assessor’s Parcels which are privately owned but are encumbered by or restricted solely for public uses; or (iv) any Assessor’s Parcel which is in use in the performance of a public function as determined by the Administrator.

L. APPEALS
Any property owner claiming that the amount or application of the Special Tax A or the Special Tax B are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax A or Special Tax B that is disputed. A City of Victorville 10
Community Facilities District No. 2024-01 (Municipal Services) representative(s) of CFD No. 2024-01 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax A or the Special Tax B, and rule on the appeal. If the representative’s decision requires that the Special Tax A or Special Tax B for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax A or Special Tax B on that Assessor’s Parcel in subsequent Fiscal Year(s).

M. MANNER OF COLLECTION
The Special Tax A or Special Tax B shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2024-01 may collect the Special Tax A or Special Tax B at a different time or in a different manner if necessary to meet its financial obligations.

City of Victorville 11
Community Facilities District No. 2024-01 (Municipal Services)

APPENDIX A

CITY OF VICTORVILLE
COMMUNITY FACILITIES DISTRICT NO. 2024-01 (MUNICIPAL SERVICES)

MAXIMUM SPECIAL TAX B ASSIGNED TO EACH TAX ZONE OF DEVELOPED PROPERTY Tax
Zone
Year
Included Tract
Land Use
Category
Taxable
Unit
Maximum
Special
Tax
1 2025 14525 Single Family Residential R/U $165.47
1 2025 14525 Multifamily Residential Property R/U $165.47 1 2025 14525 Non-Residential Property Acre $1,311.46

MAXIMUM SPECIAL TAX B ASSIGNED TO EACH TAX ZONE OF APPROVED PROPERTY Tax
Zone
Year
Included Tract
Land Use
Category
Taxable
Unit
Maximum
Special
Tax
1 2025 14525 Single Family Residential R/U $165.47
1 2025 14525 Multifamily Residential Property R/U $165.47 1 2025 14525 Non-Residential Property Acre $1,311.46

MAXIMUM SPECIAL TAX B ASSIGNED TO EACH TAX ZONE OF UNDEVELOPED PROPERTY Tax
Zone
Year
Included Tract
Taxable
Unit
Maximum
Special
Tax
1 2025 14525 Acre $1,311.46

ESCALATION OF MAXIMUM SPECIAL TAX B
On each July 1, commencing on July 1, 2026, the Maximum Special Tax B for Developed, Approved and Undeveloped Property for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December for the prior Fiscal Year or (ii) five percent (5%).

APPENDIX B
Boundary Map & Future Annexation Area Boundary Map

Exhibit C

Rate and Method Apportionment

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR COMMUNITY FACILITIES DISTRICT NO. 2024-01 (MUNICIPAL SERVICES) OF THE CITY OF

VICTORVILLE

The following sets forth the Rate and Method of Apportionment for the levy and collection of Special Tax A and Special Tax B of Community Facilities District No. 2024 -01 (Municipal Services) of the City of Victorville (CFD No. 2024 -01). A Special Tax A and Special Tax B shall be levied on and collected in CFD No. 2024 -01 each Fiscal Year, in an amount determined through the application of the Rate and Method of Apportionment described below. All real property within CFD No. 2024 -01, 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

2.5 of Part 1, Division 2 of Title 5 of the Government Code of the State of California. “Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation, annexation, and administration of CFD No. 2024-01 including, but not limited to: the costs of computing Special Tax A and Special Tax B and preparing the annual collection schedules (whether by the City or designee thereof or both) for Special Tax A and Special Tax B; the costs to the City, CFD No. 2024 -01, or any designee thereof associated with fulfilling the CFD No. 2024 -01 disclosure requirements; the costs associated with responding to public inquiries regarding Special Tax A and Special Tax B; the costs of the City, CFD No. 2024 -01 or any designee thereof related to an appeal of Special Tax A or Special Tax B; and the City's annual administration fees including payment of a proportional share of salaries and benefits of any City employees and City overhead whose duties are related to the administration and third party expenses. Administrative Expenses shall also include amounts estimated or advan ced by the City or CFD No. 2024 -01 for any other administrative purposes of CFD No. 2024-01, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. “Administrator” means the City Manager of the City of Victorville, or his or her designee. “Annual Special Tax A” means for each Assessor’s Parcel, the Special Tax A actually levied in a given Fiscal Year on any Assessor’s Parcel.
“Annual Special Tax B” means for each Assessor’s Parcel, the Special Tax B actually levied in a given Fiscal Year on any Assessor’s Parcel.
“Approved Property” means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st of preceding the Fiscal Year in which Special Tax A or Special Tax B is being levied, and (ii) that have not been issued a building

permit on or before June 1st preceding the Fiscal Year in which the Special Taxes are to be levied.
“Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of San Bernardino. “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 that identification number assigned to a parcel by the County Assessor of the County.
“Boundary Map” means a recorded map of the CFD No. 2024 -01 which indicates the boundaries of CFD No. 2024-01.
“Building Square Footage” or “BSF” means the floor area square footage reflected on the original construction building permit issued for construction of a building of Non -Residential Property and any Building Square Footage subsequently added to a building of such Taxable Property after issuance of a building permit for expansion or renovation of such building. “Calendar Year” means the period commencing January 1 of any year and ending the following December 31.
“CFD” or “CFD No. 2024-01” means the City of Victorville Community Facilities District No. 2024-01 (Municipal Services).
“City” has the meaning set forth in the preamble.
“City Council” means the City Council of the City of Victorville, acting as the legislative body of CFD No. 2024-01, or its designee.
“Commercial Property” means all Assessor’s Parcels of Non-Residential Property for which a Building Permit(s) has been issued by the City which is primarily used for, but not limited to:
retail commercial, service commercial, and office commercial activities, as well as large-scale planned shopping districts serving the local and regional area and population, “big box” retailers, motels/hotels, and public assembly uses, or for any other uses that are consistent with commercial land use designation as determined by the City or Administrator. “Consumer Price Index” or “CPI” means the index published monthly by the U.S.

Department of Labor, Bureau of Labor Statistics for all urban consumers in the Riverside-San Bernardino-Ontario area. In the event this index ceases to be published, the Consumer Price Index shall be another i ndex as determined by the Administrator that is reasonably comparable to the Consumer Price Index for the Riverside-San Bernardino-Ontario area. “Developed Property” means all Assessor’s Parcels of Taxable Property that: (i) are included in a Final Map that was recorded prior to January 1st preceding the Fiscal Year in which the Special Taxes are to be levied, and (ii) for which a building permit for new construction has been issued on or prior to June 1 preceding the Fiscal Year in which Special Tax A or Special Tax B is being levied.
“Exempt Property” means all Assessors’ Parcels designated as being exempt from Special

Tax A or Special Tax B as provided for in Section K.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code Section 4285 that creates individual lots for which building permits may be issued without further subdivision.
“Fiscal Year” means the period from and including July 1 st of any year to and including the following June 30th.
“Heavy Industrial Property” means an Assessor’s Parcel of Non -Residential Property for which a Building Permit(s) has been issued for intense industrial activities, such as manufacturing, materials processing, and any related industrial activities that generate significant impacts such as excessive noise, dust, and other nuisances or for any other uses that are consistent with heavy industrial use designation of the Land Use Element of the General Plan as determined by the City or Administrator. “Land Use Category” or “LUC” means any of the categories contained in Section B hereof to which an Assessor’s Parcel is assigned consistent with the land use approvals that have been received or proposed for the Assessor’s Parcel as of May 1 preceding the Fiscal Year in which Special Tax A or Special Tax B is being levied. “Light Industrial Property” means an Assessor’s Parcel of Non -Residential Property for which a Building Permit(s) has been issued for industrial, service -commercial, and related uses including warehousing/distribution, research and development, assembly and light manufacturing, repair facilities, and supporting retail uses either located in industrial and/or business parks or in mixed industrial/business park use areas or for any other uses that are consistent with light industrial use designation of the Land Use Element of the General Plan as determined by the City o r Administrator. The main feature of industrial activities in this category is that they do not require any significant site or structure requirements that are so specialized that would limit future use of the structures and/or site by another industrial activity. “Maintenance Services” means the services permitted under the Act and the formation proceedings with respect to CFD No. 2024 -01 including, but not limited to, operations, maintenance and lighting of parks, parkways, sidewalks, signage, landscaping in public areas, easements or right of way and open space; flood and storm protection services; the operation of storm drainage systems; maintenance of streets and roadways, traffi c signals and street lighting; graffiti and debris removal from public improvements; operation of library and recreation programs; operation of future museums and cultural facilities; and maintenance and operation of any real property or other tangible property with an estimated useful life of five or more years that is owned by the City of Victorville within the boundaries of CFD No. 2024-01 and the City.

“Maximum Special Tax A” means for each Assessor’s Parcel of Taxable Property, the maximum Special Tax A, determined in accordance with Section C that can be levied in any given Fiscal Year on such Assessor’s Parcel.
“Maximum Special Tax B” means for each Assessor’s Parcel of Taxable Property, the maximum amount of Special Tax B, determined in accordance with Section F that can be

levied in any given Fiscal Year on such Assessor’s Parcel. “Multifamily Residential 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. “Mixed-Use 1 Property” means all Assessor’s Parcels of Residential or Non -Residential Property for which a Building Permit(s) has been issued by the City which is primarily used for, but not limited to: mixed use, stand-alone commercial, and stand-alone residential with a density of 1 to 15 dwelling units per acre for residential and a FAR of 0.5 for non -residential, or for any other uses that are consistent with a Mixed-Use 1 land use designation of the Land Use Element of the General Plan as determined by the City or Administrator. “Mixed-Use 2 Property” means all Assessor’s Parcels of Residential or Non -Residential Property for which a Building Permit(s) has been issued by the City which is primarily used for, but not limited to: mixed use, stand-alone commercial, and stand-alone residential with a density of 15.1 to 30 dwelling units per acre for residential and a FAR of 1.0 for non-residential, or for any other uses that are consistent with a Mixed-Use 2 land use designation of the Land Use Element of the General Plan as determined by the City or Administrator “Non-Residential Property” means all Assessor's Parcels of Taxable Property for which a building permit(s) was issued for a non -residential use. The Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property. “Other Non-Residential Property” means an Assessor’s Parcel of Non-Residential Property that is not classified as Commercial Property, Mixed -Use 1 Property, Mixed-Use 2 Property, Public Institution Property, Light Industrial Property or Heavy Industrial Property. “Proportionately” means for Taxable Property that is: (i) Developed Property, that the ratio of the actual Special Tax A or Special Tax B levy to the Maximum Special Tax A or Maximum Special Tax B is the same for all Parcels of Developed Property, (ii) Approved Property, t hat the ratio of the actual Special Tax A or Special Tax B levy to the Maximum Special Tax A or Maximum Special Tax B is the same for all Parcels of Approved Property, and (iii) Undeveloped Property that the ratio of the actual Special Tax Levy A or Special Tax Levy B per acre to the Maximum Special Tax A or Maximum Special Tax B per acre is the same for all Parcels of Undeveloped Property.
“Public Institution Property” means all Assessor’s Parcels of Residential or Non - Residential Property for which a Building Permit(s) has been issued by the City which is primarily used for, but not limited to: land uses and activities that are predominately used for public purposes or owned or operated by a public entity. Activities within this category include city and county buildings, public and private schools, colleges, and public utilities and city yards, or for any other uses that are consistent with a Public Institution Property land use designation of the Land Use Element of the General Plan as determined by the City o r Administrator.
“Public Safety Services" means the services permitted under the Act including, without limitation, police , fire, and code enforcement services and protections, ambulance, and paramedic services provided within the boundaries of CFD No. 2024-01 and the City.

“Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed Residential Units have been constructed or for which building permits have been or may be issued for purposes of constructing one or more Residential Units. “Residential Unit” or "R/U" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. “Single Family Residential Property” means any residential property that consists of a building comprised of attached or detached residential units available for purchase or rent by the general public.
"Special Tax(es)" means, individually and collectively, Special Tax A and Special Tax B authorized to be levied within CFD No. 2024-01 pursuant to the Act to fund the Special Tax A Requirement and the Special Tax B Requirement.
“Special Tax A” means the special tax authorized to be levied on Taxable Property within CFD No. 2024-01 pursuant to the Act to fund the Special Tax A Requirement. “Special Tax B” means the special tax authorized to be levied on Taxable Property within CFD No. 2024-01 pursuant to the Act to fund the Special Tax B Requirement. "Special Tax A Requirement" means the amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2024-01 for Public Safety Services in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the (i) direct costs for Public Safety Services, (ii) amount necessary to fund an operating reserve for the costs of Public Safety Services as determined by the Administrator, and (iii) Administrative Expenses (apportioned between Special Tax A, and Special Tax B), less (iv) a credit in an amount equal to the Operating Fund Balance for Public Safety Services. Under no circumstances shall the Special Tax A Requirement include funds for Bonds. "Special Tax B Requirement" means the amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2024-01 for Maintenance Services in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the (i) direct costs for Maintenance Services, (ii) amount necessary to fund an operating reserve for the costs of Maintenance Services as determined by the Administrator, and (iii) Administrative Expenses (apportioned between Special Tax A, and Special Tax B), less (iv) a credit in an amount equal to the Operating Fund Balance for Maintenance Services. Under no circumstances shall the Special Tax B Requirement include funds for Bonds. "Taxable Property" means all Assessor’s Parcels within CFD No. 2024 -01, which are not Exempt Property.
“Taxable Unit” means a Residential Unit, Building Square Footage, or an Acre. "Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax B rates may be levied pursuant to this Rate and Method of Apportionment of Special Tax B.

Appendix A identifies the Tax Zone in CFD No. 2024 -01 at formation; additional Tax Z ones may be created when property is annexed into the CFD.
"Tax Zone 1" means the specific geographic area identified on the CFD Boundary Map as Tax Zone 1.

"Tract(s)" means an area of land within a subdivision identified by a particular tract number on a Final Map approved for the subdivision.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property or Approved Property.

B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, beginning with Fiscal Year 2025 -26, each Assessor’s Parcel within CFD No. 2024-01 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Develope d Property or Undeveloped Property. In addition, each Assessor’s Parcel of Developed Property shall further be classified as Single Family Residential Property, Multifamily Residential Property, Commercial Property, Mixed -Use 1 Property, Mixed -Use 2 Proper ty, Public Institution Property, Light Industrial Property, Heavy Industrial Property or Other Non -Residential Property.

C. MAXIMUM SPECIAL TAX A
a. Developed Property
(i) Maximum Special Tax A
The Maximum Special Tax A for each Assessor’s Parcel of Developed Property for each Land Use Type is shown in Table 1 below:

TABLE 1

MAXIMUM SPECIAL TAX A RATES

(ii) Increase in the Maximum Special Tax
On July 1 of each year , commencing July 1, 2026, the Maximum Special Tax A for Developed Property for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December of the prior Fiscal Year or (ii) five percent (5%). b. Multiple Land Use Categories
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Land Use Category. 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 Types located on that Assessor’s Parcel.
c. Approved Property
No Special Tax A shall be levied on Approved Property.
d. Undeveloped Property
No Special Tax A shall be levied on Undeveloped Property.

E. PREPAYMENT OF SPECIAL TAX A
Special Tax A cannot be prepaid.

F. MAXIMUM SPECIAL TAX B
For purposes of determining the applicable Maximum Special Tax B for Assessor’s Parcels of Developed Property and Approved Property which are classified as Residential Property, all such Assessor’s Parcels shall be assigned the number of Residential Unit(s) constructed or to be constructed thereon as specified in or shown on the building permit(s) issued or Final Map as determ ined by the Administrator. For Parcels of Undeveloped Property zoned for development of single family attached or multifamily units, the number of Residential Units shall be determined by referencing the condominium plan, apartment plan, site plan or other development plan, or by assigning the maximum allowable units permitted based on the underlying zoning for the Parcel. Once a single family attached or multifamily building or buildings have been built on an Assessor's Parcel, the Administrator shall determine the actual number of Residential Units contained within the building or buildings, and the Special Tax B levied against the Parcel in the next Fiscal Year shall be calculated by multiplying the actual number of Residential Units by the Maximum Special Tax B per Residential Unit identified for the Tract in Table 2 below or as included in Appendix A as each Annexation occurs.

The Maximum Special Tax B for each Assessor’s Parcel of Taxable Property is shown in Table 2 is shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2024 -01, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B for the Tax Zones annexed and included in Appendix A. The Maximum Special Tax for Fiscal Year 2025 -2026 within Tax Zone 1 is identified in Table 2 below:

TABLE 2

MAXIMUM SPECIAL TAX B RATES

DEVELOPED PROPERTY

Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax B
1 14525 Single Family Residential
Property
R/U $165.47
1 14525 Multifamily Residential Property R/U $165.47
1 14525 Non-Residential Property Acre $1,311.46

(ii) Increase in the Maximum Special Tax
On July 1 of each year, commencing on July 1, 2026, the Maximum Special Tax B for Developed Property for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December for the prior Fiscal Year or (ii) five percent (5%). (iii) Multiple Land Use Categories
In some instances, an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax B that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax B that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use a s determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final.
b. Approved Property
The Maximum Special Tax B for each Assessor’s Parcel of Taxable Property is shown in Table 3 shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2024 -01, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax B for Fiscal Year 2025-2026 within the Tax Zone is identified in Table 3 below:

TABLE 3

MAXIMUM SPECIAL B TAX RATES

APPROVED PROPERTY

On each July 1, commencing on July 1, 2026 the Maximum Special Tax B for Approved Property for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending i n December for the prior Fiscal Year or (ii) five percent (5%). c. Undeveloped Property
The Maximum Special Tax B for each Assessor’s Parcel of Taxable Property is shown in Table 4 shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2024 -01, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax B for Fiscal Year 2025-2026 within the Tax Zone is identified in Table 4 below:

TABLE 4

MAXIMUM SPECIAL TAX B RATES

UNDEVELOPED PROPERTY

Tax Zone
Tracts Taxable Unit
Maximum Special Tax
B
1 14525 Acre $1,311.46

(i) Increase in the Maximum Special Tax
On July 1 of each year, commencing on July 1, 2026 the Maximum Special Tax B for Developed Property for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December for the prior Fiscal Year or (ii) five percent (5%).

G. METHOD OF APPORTIONMENT OF SPECIAL TAX B
Commencing with Fiscal Year 2025 -26 and for each following Fiscal Year, the City Council shall determine the Special Tax B Requirement and shall levy the Special Tax B on all Assessor’s Parcels of Taxable Property until the aggregate amount of Special Tax B equals the Special Tax B Requirement. The Special Tax B shall be levied for e ach Fiscal Year as follows:

First: The Special Tax B shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax B to satisfy the Special Tax B Requirement;

H. PREPAYMENT OF SPECIAL TAX B
Special Tax B cannot be prepaid.

I. FUTURE ANNEXATIONS
It is anticipated that additional properties will be annexed to CFD No. 2024 -01 from time to time. As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Maintenance Services. Based on this analysis, the property to be annexed, pursuant to California Government Code section 53339 et seq. will be assigned to the appropriate Maximum Special Tax rate(s) for the Tax Zone when annexed and included in Appendix A.

K. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2024-01, any Assessor’s Parcel in any of the following categories; (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) Assessor’s Parcels which are privately owned but are encumbered by or restricted solely for publ ic uses; or (iv) any Assessor’s Parcel which is in use in the performance of a public function as determined by the Administrator.

L. APPEALS
Any property owner claiming that the amount or application of the Special Tax A or the Special Tax B are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax A or Special Tax B that is disputed. A representative(s) of CFD No. 2024 -01 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax A or the Special Tax B, and rule on the appeal. If the representative’s decision requires that the Special Tax A or Special Tax B for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to t he Special Tax A or Special Tax B on that Assessor’s

Parcel in the subsequent Fiscal Year(s).

M. MANNER OF COLLECTION
The Special Tax A or Special Tax B shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2024 -01 may collect the Special Tax A or Special Tax B at a different time or in a differen t manner if necessary to meet its financial obligations.

APPENDIX A

CITY OF VICTORVILLE
COMMUNITY FACILITIES DISTRICT NO. 2024-01 (MUNICIPAL SERVICES)

MAXIMUM SPECIAL TAX B ASSIGNED TO EACH TAX ZONE OF DEVELOPED

PROPERTY
Tax
Zone
Year
Include
d Tract
Land Use
Category
Taxable
Unit
Maximum
Special
Tax
1 2025 14525 Single Family Residential R/U $165.47
1 2025 14525 Multifamily Residential
Property R/U $165.47
1 2025 14525 Non-Residential Property Acre $1,311.46

MAXIMUM SPECIAL TAX B ASSIGNED TO EACH TAX ZONE OF APPROVED PROPERTY Tax
Zone
Year
Include
d Tract
Land Use
Category
Taxable
Unit
Maximum
Special
Tax
1 2025 14525 Single Family Residential R/U $165.47
1 2025 14525 Multifamily Residential Property R/U $165.47 1 2025 14525 Non-Residential Property Acre $1,311.46

MAXIMUM SPECIAL TAX B ASSIGNED TO EACH TAX ZONE OF UNDEVELOPED

PROPERTY
Tax
Zone
Year
Include
d Tract
Taxable
Unit
Maximum
Special
Tax
1 2025 14525 Acre $1,311.46

ESCALATION OF MAXIMUM SPECIAL TAX B
On July 1 of each year, commencing on July 1, 2026, the Maximum Special Tax B for Developed, Approved and Undeveloped Property for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December for the prior Fiscal Year or (ii) five percent (5%).

Victorville City CouncilNovember 19, 2024

Victorville City Council
November 19, 2024