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14-388 RESOLUTION NO. 14-388 A RESOLUTION OF FORMATION OF THE CITY COUNCIL OF THE CITY OF MENIFEE TO ESTABLISH CITY OF MENIFEE COMMUNITY FACILITIES DISTRICT NO. 2014-1 (TOWN CENTER) AND TO AUTHORIZE THE LEVY OF A SPECIAL TAX THEREIN TO FINANCE CERTAIN SERVICES WHEREAS, on June 18, 2014, this Council adopted a resolution entitled "A Resolution of the Menifee City Council Declaring its Intention to Establish City of Menifee Community Facilities District No. 2014-1 (Town Center) and to Authorize the Levy of a Special Tax therein to Finance Certain Services" (the 'Resolution of Intention"), stating its intention to form City of Menifee Community Facilities District No. 2014-1 (Town Center) (the "CFD"), pursuant to Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with Section 53311, of the California Government Code (the "Act'); WHEREAS, the Resolution of Intention, setting forth a description of the proposed boundaries of the CFD, services to be financed by the CFD, including incidental expenses, and the rate and method of apportionment (the "Rate and Method") of the special tax (the "Special Tax") to be levied within the CFD to pay for the Services, is on file with the City Clerk and the provisions thereof are incorporated herein by this reference as if fully set forth herein; WHEREAS, the Resolution of Intention set August 6, 2014, or as soon thereafter as practical, as the date for a public hearing on the establishment of the CFD, the extent of the CFD, the furnishing of the Services within the CFD, and the proposed Rate and Method; WHEREAS, a notice of the public hearing to be held on August 6, 2014 was published and mailed in accordance with the Act; WHEREAS, on this date, this Council held a noticed public hearing as required by the Act and the Resolution of Intention relative to the proposed formation of the CFD; WHEREAS, at the hearing all interested persons desiring to be heard for or against the establishment of the CFD, the extent of the CFD, the furnishing of the Services and the Rate and Method were heard and a full and fair hearing was held; WHEREAS, at the hearing evidence was presented to this Council on such matters before it, including a special report (the "CFD Report') as to the Services to be provided through the CFD and the costs thereof, a copy of which is on file with the City Clerk and by this reference incorporated herein, and this Council, at the conclusion of said hearing, is fully advised in the premises; WHEREAS, written protests with respect to the formation of the CFD, the furnishing of specified types of services and the Rate and Method have not been filed with the City Clerk by fifty percent (50%) or more of the registered voters residing within the territory of the CFD or property owners of one-half (1/2) or more of the area of land within the CFD and not exempt from the proposed special taxes; and Resolution No. 14-388 Establishing CFD 2014-1 Town Center WHEREAS, the Special Tax proposed to be levied in the CFD to pay for the proposed services has not been eliminated by protest by fifty percent (50%) or more of the registered voters residing within the territory of the CFD or the owners of one-half (1/2) or more of the area of land within the CFD and not exempt from the special taxes. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MENIFEE HEREBY RESOLVES AS FOLLOWS: SECTION 1. Recitals Correct. The foregoing recitals are true and correct. SECTION 2. Public Hearing. On this date, pursuant to notice thereof duly given as provided by law, the City Council held a public hearing with respect to the establishment of the CFD and the annual levying of the Special Tax within the CFD to pay for the Services. SECTION 3. No Maiority Protest. The proposed Special Tax to be levied within the CFD has not been precluded by majority protest pursuant to section 53324 of the Act. SECTION 4. Prior Proceedings Valid. All prior proceedings taken by this City Council in connection with the establishment of the CFD and the levy of the Special Tax have been duly considered and are hereby found and determined to be valid and in conformity with the Act. SECTION 5. Name of the District. The community facilities district designated "City of Menifee Community Facilities District No. 2014-1 (Town Center)" is hereby established pursuant to the Act. SECTION 6. Boundaries of the District. The Resolution of Intention provides the boundaries of the territory proposed for inclusion in the CFD, as set forth in the map of the CFD heretofore recorded in the Riverside County Recorder's Office on June 3, 2014, in Book 77, at Page 23, as Instrument No. 2014-0248827 of Maps of Assessment and Community Facilities Districts. SECTION 7. Description of Services. The Services proposed to be financed by the CFD and pursuant to the Act shall consist of those items shown in Exhibit "A" hereto and by this reference incorporated herein. SECTION 8. Special Tax. a. 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 the recordation of a continuing lien against all non-exempt real property in the CFD, 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 may be prescribed by this Council. b. The proposed Rate and Method, in sufficient detail to allow each landowner within the proposed CFD to estimate the maximum amount such owner will have to pay, is shown in Exhibit "B" attached hereto and hereby incorporated herein. 2 Resolution No. 14-388 Establishing CFD 2014-1 Town Center SECTION 9. Report. The Report is hereby approved and is made a part of the record of the public hearing regarding the formation of the CFD, and is ordered to be kept on file with the City Clerk as part of the transcript of these proceedings. SECTION 10. Increased Demands. It is hereby found and determined that the Services are necessary to meet increased demands placed upon local agencies, including the City, as the result of development occurring in the CFD. SECTION 11. Responsible Official. The Finance Director of the City of Menifee, located at 29714 Haun Rd., Menifee, CA 92586 or his/her designee, is the officer of the City who will be responsible for preparing annually a current roll of the levy of the Special Tax obligations by assessor's parcel number and who will be responsible for estimating future levies of the Special Tax. SECTION 12. Tax Lien. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the Special Tax shall attach to all nonexempt real property in the CFD and this lien shall continue in force and effect until the lien is canceled in accordance with law or until collection of the Special Tax by the CFD ceases. SECTION 13. Description of Voting Procedures. The voting procedures to be followed in conducting the special election (the "Special Election") on the proposition of the annual levy of the Special Tax and on the proposition to establish an appropriations limit for the CFD, if the CFD is established, shall be as follows: a. If at least 12 persons have been registered to vote within the territory of the CFD for each of the 90 days preceding the close of the public or protest hearing (the "protest hearing"), the vote in the Special Election shall be by the registered voters of the CFD with each voter having one vote. In that event, the Special 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 Act and pursuant to the provisions of the California Elections Code governing elections of cities, insofar as they may be applicable, and pursuant to said Section 53326 the ballots for the Special Election shall be distributed to the qualified electors of the CFD by mail with return postage prepaid or by personal service, and the Special Election shall be conducted as a mail ballot election. b. If 12 persons have not been registered to vote within the territory of the CFD for each of the 90 days preceding the close of the protest hearing, the vote in the Special Election is to be by the landowners of the CFD, 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 the CFD, the Special Election shall be conducted by the City Clerk pursuant Section 53326 of the Act as follows: (i) The Special Election shall be held on the earliest date, following the adoption by the City Council of this Resolution and a resolution calling the Special Election, to submit to the qualified electors of the CFD the propositions with respect to: (i) the levy of Special Tax to finance the Services and (ii) the establishment of an appropriations limit for the CFD. 3 Resolution No. 14-388 Establishing CFD 2014-1 Town Center (ii) Pursuant to said Section 53326, the Special Election may be held earlier than 90 days following the close of the protest hearing if the qualified electors of the CFD waive the time limits for conducting the elections set forth in said Section 53326 by unanimous written consent and the Clerk concurs in such earlier election date as shall be consented to by the qualified electors. (iii) Pursuant to said Section 53326, ballots for the Special Election shall be distributed to the qualified electors by the Clerk by mail with return postage prepaid, or by personal service. (iv) Pursuant to applicable sections of the California Elections Code governing the conduct of mail ballot elections of cities, the City Clerk shall mail (or deliver) to each qualified elector an official ballot and shall also mail 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 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 and the exhibits hereto; provided, however, that analysis and arguments regarding the ballot measure may be waived with the unanimous consent of all the landowners, and in such event a finding regarding such waivers shall be made in the resolution adopted by the City Council calling the Special Election. (v) The official ballot to be mailed (or delivered) by the Clerk to each landowner shall have printed or typed thereon the name of the landowner and the number of votes to be voted by the landowner 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 is other than a natural person, that he or she is an officer of or other person affiliated with the landowner entitled to vote such official ballot, that he or she has been authorized to vote such official ballot on behalf of the landowner, that in voting such official ballot it was his or her intent, as well as the intent of the landowner, to vote all votes to which the landowner is entitled based on its land ownership on the propositions set forth in the official ballot as marked thereon in the voting square opposite each such proposition, and further certifying as to the acreage of the landowner's land ownership within the CFD. (vi) The return identification envelope delivered by the Clerk to each landowner 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 Clerk. 4 Resolution No. 14-388 Establishing CFD 2014-1 Town Center (vii) The instruction to voter form to be mailed by the Clerk to the landowners shall inform them that the official ballots shall be returned to the 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 no later than 6:00 p.m. on the date of the Special Election, or immediately after the Resolution Calling the Special Election is adopted. (viii) Upon receipt of the return identification envelopes, which are returned prior to the voting deadline on the date of the Special Election, the Clerk shall canvass the votes cast in the Special Election, and shall file a statement with the City Council as to the results of such canvass and the election on each proposition set forth in the official ballot. SECTION 14. Annexation Territory. Other property within the boundaries of the City may be annexed into the CFD pursuant to Article 3.5 of the Act. SECTION 15. Exempt Property. Except as provided in Section 53340.1 of the Act and except for properties that a local agency is a landowner of within the meaning of subdivision (f) of Section 53317 of the Act, pursuant to Section 53340 of the Act, properties of entities of the state, federal and local governments shall be exempt from the levy of the Special Tax. Reference is hereby made to the Rate and Method for a description of other properties or entities that are expressly exempted from the levy of the Special Tax. SECTION 16. Appropriations Limit. An appropriations limit for the CFD is hereby established, subject to voter approval, as an amount equal to all the proceeds of the Special Tax collected annually within such CFD and as defined by Article X11113 of the California Constitution, as adjusted for changes in the cost of living and changes in population. SECTION 17. Special Tax Accountability Measures. Pursuant to and in compliance with the provisions of Government Code Section 50075.1, the City Council hereby establishes the following accountability measures pertaining to the levy by the CFD of the Special Tax described in Section 8 above: a. The Special Tax shall be levied for the specific purposes set forth in Section 7 hereof. b. The proceeds of the levy of the Special Tax shall be applied only to the specific purposes set forth in Section 7 hereof. C. The CFD shall establish an account or accounts into which the proceeds of such Special Tax shall be deposited. d. The City Manager, or his or her designee, acting for and on behalf of the CFD, shall annually file a report with the City Council as required pursuant to Government Code Section 50075.3. SECTION 18. Effective Date. This resolution shall take effect upon its adoption. 5 Resolution No. 14-388 Establishing CFD 2014-1 Town Center Passed and adopted this 6th day of August, 2014. Scott A. Mann, Mayor ATTESgc a T:: — Avis�r� Kathy Bennett, City Clerk APPROVED AS TO FORM: J'lie Hayward Big , ity Attorney 6 Resolution No. 14-388 Establishing CFD 2014-1 Town Center EXHIBIT A DESCRIPTION OF SERVICES Maintenance and operation of lighting, parkways, streets, roads, and open space owned by the City, including but not limited to trees, plant material, sod, irrigation systems, sidewalks, drainage facilities, weed control and other abatements, signs, monuments, and associated appurtenant facilities. Services may include labor, material, administration, personnel, associated City overhead costs, equipment, and utilities necessary for such maintenance including incidental expenses incurred in connection with the services and forming and administering the district. A-1 Resolution No, 14-388 Establishing CFD 2014-1 Town Center EXHIBIT B RATE AND METHOD OF APPORTIONMENT B-1 RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX COMMUNITY FACILITIES DISTRICT NO. 2014-1 (TOWN CENTER) OF THE CITY OF MENIFEE A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels within Community Facilities District No. 2014-1 (CFD No. 2014-1) of the City of Menifee, other than Assessor's Parcels classified as Exempt Property as defined herein, and collected each Fiscal Year commencing in Fiscal Year 2014-2015, in an amount determined by the CFD Administrator through the application of the procedures described below. All of the real property within CFD No. 2014-1 (including property subsequently annexed to CFD No. 2014-1 unless a separate Rate and Method of Apportionment of Special Tax is adopted for the annexation area),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: "Act" means the Mello-Roos Communities Facilities Act of 1982, as amended, being Chapter 2.5,Part 1,Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the following actual or reasonably estimated expenses related to the administration of CFD No. 2014-1: the costs of determining the amount of the levy of Special Taxes, the collection of Special Taxes, including the expenses of collecting delinquencies, the payment of a proportional share of salaries and benefits of any City employees and City overhead whose duties are related to the administration of CFD No. 2014- 1, costs associated with responding to public inquiries regarding CFD No. 2014-1, and any and all other costs incurred in connection with the administration of CFD No. 2014-1. "Approved Property" means all parcels of Taxable Property that (i) are included in a Final Map which was recorded prior to the January 1 preceding the Fiscal Year in which the Special Tax is being levied and (ii) have not been issued a Building Permit on or prior to the April 1 preceding the Fiscal Year in which the Special Tax is being levied. "Assessor's Parcel" means a lot or parcel within CFD No. 2014-1 shown on 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. "Assigned Special Tax" means the Special Tax applicable to each Assessor's Parcel of Developed Property, as determined in accordance with Section C.1.b below. "Backup Special Tax" means the Special Tax applicable to each Assessor's Parcel of Developed Property, as determined in accordance with Section C.1.c below. "Boundary Map" means a recorded map of CFD No. 2014-1 which indicates by a boundary line the extent of the territory identified to be subject to the levy of Special Taxes. "Building Permit" means a permit for new construction for a residential dwelling or non- residential structure. For purposes of this definition, `Building Permit" shall not include permits for construction or installation of retaining walls, utility improvements, or other such improvements not intended for human habitation. B-2 "Calendar Year" means the period commencing January 1 of any year and ending the following December 31. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, and providing for the levy and collection of the Special Taxes for CFD No. 2014-1. "CFD No. 2014-1"means Community Facilities District No. 2014-1 (Town Center) of the City of Menifee established by the City under the Act to fund Services. "City" means the City of Menifee. "City Council" means the City Council of the City, acting as the legislative body of CFD No. 2014-1. "Consumer Price Index" means, for each Fiscal Year, 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. "County" means the County of Riverside. "Developed Property" means an Assessor's Parcel of Taxable Property that have been issued a Building Permit on or prior to the April 1 preceding the Fiscal Year in which the Special Tax is being levied. "Estimated Special Tax Delinquency Amount" means an amount equal to a reasonable estimate of delinquencies expected to occur in the Fiscal Year in which Special Taxes will be levied. "Exempt Property" means all Assessor's Parcels within CFD No. 2014-1 that are exempt from the Special Tax pursuant to the Act or Section G herein. "Final Map" means a subdivision of property by recordation of a final map,Assessor's Parcel Map or lot line adjustment pursuant to the Subdivision Map Act (California Government Code Section 66140 et seg.) or recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots for which Building Permits may be issued without further subdivision. "Fiscal Year" means the period commencing on July 1 of any year and ending the following June 30. "Land Use Type" means any of the land use types listed in Table 1 below. "Maximum Special Tax" means for each Assessor's Parcel of Taxable Property, the maximum Special Tax determined in accordance with Section C,which may be levied in a given Fiscal Year on such Assessor's Parcel. "Mixed Use Property" means an Assessor's Parcel of Taxable Property upon which more than one Land Use Type is located. "Non-Residential Property"means an Assessor's Parcel of Developed Property not classified as Residential Property. "Property Owner Association Property" means, for each Fiscal Year, any Assessor's Parcel that was owned by a property owner association,including any master or sub-association, as of January 1 of the prior Fiscal Year. B-3 "Proportionately" means for Taxable Property that is (i) Developed Property, that the ratio of the actual Special Tax levy to Assigned Special Tax is the same for all Assessor's Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy per acre to the Maximum Special Tax per acre is the same for all Assessor's Parcels of Approved Property, and (iii) Undeveloped Property, Public Property and Property Owner Association Property that the ratios of the actual Special Tax levy per acre to the Maximum Special Tax per acre is the same for all Assessor's Parcels of Undeveloped Property, Public Property and Property Owner Association Property. "Public Property" means all Assessor's Parcels which, as of April 1st preceding the Fiscal Year in which the Special Tax is being levied, are (i) owned by, dedicated to, or irrevocably offered for dedication to the federal government,the State, the County, City or any other public agency (each, a "Public Entity"), provided, however, that any property leased by a Public Entity to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use; or (ii) encumbered by an unmanned utility easement maldng impractical its utilization for other that 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 a residential structure consisting of one or more Residential Unit(s). "Residential Unit" means any residence in which a person or persons may live, which is not considered to be useable for non-residential purposes. "Services" means those authorized services that may funded by CFD No. 2014-1 pursuant to resolution of the City forming CFD No. 2014-1 and the Act,as amended. "Special Tax" means the special tax authorized to be levied within CFD No. 2014-1 pursuant to this Rate and Method of Apportionment and the Act to fund the Special Tax Requirement. "Special Tax Requirement" means for each Fiscal Year, the amount, as determined by the CFD Administrator, to: (i) pay the costs of providing the Services during such Fiscal Year, (ii) pay Administrative Expenses associated with Special Tax, (iii) establish or replenish any operational reserve fund, (iv) pay incidental expenses related to the Services as authorized pursuant to the Act, (v) fund the Estimated Special Tax Delinquency Amount and (vi) fund the shortfall,if any,in Special'Fax revenues collected in the preceding Fiscal Year necessary to fund the Special Tax Requirement for such Fiscal Year where the shortfall resulting from delinquencies in the payment of Special Taxes exceeded the Estimated Special Tax Delinquency Amount. "Taxable Property" means property that is not exempt from the Special Tax pursuant to the Act or Section G. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property. E. CLASSIFICATION OF ASSESSOR'S PARCELS Each Fiscal Year, beginning with Fiscal Year 2014-2015, each Assessor's Parcel shall first be classified by the CFD Administrator as Taxable Property or Exempt Property. In addition, each such Fiscal Year, each Assessor's Parcel of Taxable Property shall be further classified by the CFD Administrator as Developed Property or Undeveloped Property. Lastly, each such Fiscal Year, each Assessor's Parcel of Developed Property shall be further classified by the CFD Administrator as Residential.Property or Non-Residential Property. Commencing with Fiscal Year 2014-2015 and for each subsequent Fiscal Year, all Taxable Property shall be subject to the levy of Special 'faxes pursuant to Section C below. B-4 C. MAXIMUM SPECIAL TAXES 1. Developed Property a.) Maximum Special Tax Each Fiscal Year commencing in Fiscal Year 2014-2015, each Assessor's Parcel of Developed Property shall be subject to the Special Tax. The Maximum Special Tax for each Assessor's Parcel of Developed Property shall be the greater of the Assigned Special Tax and the Backup Special Tax as determined by applying the formulas in sections (b) and (c) below. b.) Assigned Special Tax The Assigned Special Tax for Developed Property for Fiscal Year 2014-2015 is shown in Table 1. TABLE 1 DEVELOPED PROPERTY FISCAL YEAR 2014-2015 ASSIGNED SPECIAL TAX RATES Land Use Type Assigned Special Tax Residential Property $95 per Residential Unit Non-Residential Property $1,033 per acre The Assigned Special Tax for each Assessor's Parcel of Developed Property shall increase on July 1, 2015 and each Judy 1 thereafter by an amount equal to the percentage change in the Consumer Price Index but not less than two percent (2%) and not more than six percent (6%). c.) Backup Special Tax The Backup Special Tax for each Assessor's Parcel of Developed Property shall be equal to $1,033 per acre for Fiscal Year 2014-2015 and shall increase on July 1, 2015 and each July 1 thereafter by an amount equal to the percentage change in the Consumer Price Index but not less than two percent (2%) and not more than six percent (61/o). 2. Approved Property and Undeveloped Property For any Fiscal Year, each Assessor's Parcel classified as Approved Property or Undeveloped Property shall be subject to the Special Tax, The Maximum Special Tax for Approved Property and Undeveloped Property for Fiscal Year 2014-2015 shall be $1,033 per acre and shall increase on July 1, 2015 and each July 1 thereafter by an amount equal to the percentage change in the Consumer Price Index but not less than two percent (29/o) and not more than six percent (6%). 3. Mixed Use Property Each Fiscal. Year commencing in Fiscal Year 2014-2015, each Assessor's Parcel of Mixed Use Property shall be subject to a Special Tax. The acreage of such Assessor's Parcel shall be allocated to each Land Use Type based on the amount of acreage designated for such Land Use Type as determine by reference to the site plan approved for such Assessor's Parcel. The Maximum Spedal'lax for an Assessor's Parcel classified as Mixed Use Property shall be B-5 equal to the sum of the Maximum Special Tax that can be levied for each Land Use Type located on that Assessor's Parcel according to the acreage allocated to each Land Use Type. D. METHOD OF APPORTIONMENT OF SPECIAL TAX Commencing with Fiscal Year 2014-2015 and for each following Fiscal Year, the City Council shall apportion the annual Special Tax as set forth below until the amount of Special Taxes equals the Special Tax Requirement. The Special Tax Requirement for Fiscal Year 2014/2015 is $148,930. In no event shall the Special Tax Requirement in any Fiscal Year exceed the product of (i) the Maximum Special Tax per acre for Undeveloped Property and (ii) 149 acres. First: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property up to 100% of the applicable Assigned Special Tax for each Land Use Type; Second: If additional monies are needed to fund the Special Tax Requirement, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Approved Property up to 100% of the Maximum Special Tax; Third: If additional monies are needed to fund the Special Tax Requirement, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property up to 100% of the Maximum Special Tax; and Fourth: If additional monies are needed to fund the Special Tax Requirement, the Special Tax levied on each Assessor's Parcel of Developed Property shall be increased in equal percentages from the Assigned Special Tax up to 100% of the Maximum Special Tax. E. PREPAYMENT OF SPECIAL TAX The Special Tax is levied for the purpose of financing ongoing Services and therefore may not be prepaid. F. TERMINATION OF SPECIAL TAX The Special Tax shall be levied as long as necessary to meet the Special Tax Requirement. G. EXEMPTIONS The CFD Administrator shall classify as Exempt Property: (i) Public Property, (ii) Property Owner Association Property, and (iii) Assessor's Parcels subject to public or utility easements, including Assessor's Parcels designated as open space, endangered species habitat or for flood control purposes, malting impractical the utilization of such Assessor's Parcels for other purposes than those set forth in the easement. H. APPEALS Any property owner claiming that the amount or application of the Special Tax is not correct may file a written notice of appeal with the CFD Administrator not later than twelve months after having paid the fust installment of the Special Tax that is disputed. The CPD Administrator 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, and rule on the appeal. If the decision of the CFD Administrator requires that the Special Tax 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 on that Assessor's Parcel in the subsequent Fiscal Year(s) to compensate for the overpayment of the Special Tax. B-6 L MANNER OF COLLECTION The annual Special Taxes shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that the Special Taxes may be billed and collected at a different time or in a different manner if necessary to meet the financial obligations of CFD No. 2014-1. B-7 l ,r Scott A.Mann Mayor STATE OF CALIFORNIA ) Wallace W.Edgerton COUNTY OF RIVERSIDE ) ss Deputy Mayor CITY OF MENIFEE ) John V.Denver Councilmember I, Kath Bennett, City Clerk of the City of Menifee, do hereby certify that the foregoing Resolution No. 14-388 was duly adopted by the City Council of the City Thomas Fuhrman of Menifee at a meeting thereof held on the 6th day of August, 2014 by the Councilmember following vote: Greg August Councilmember Ayes: August, Denver, Edgerton, Fuhrman, Mann Noes: None Absent: None Abstain: None Kathy Bennett, City Clerk 29714 Haun Road Menifee,CA 92586 Phone 951.672.6777 Fax 951.6793843 www.cityofinenifee.us