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12-277 RESOLUTION NO. 12-277 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE ESTABLISHING CITY OF MENIFEE COMMUNITY FACILITIES DISTRICT NO. 2012-02 (HIDDEN HILLS), COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND THE BOUNDARIES THEREOF WHEREAS, the City Council (the "City Council") of the City of Menifee (the "City") has heretofore adopted Resolution No. 12-268, stating that a community facilities district to be known as "City of Menifee Community Facilities District No. 2012-1, County of Riverside, State of California" (the "Community Facilities District"), is proposed to be established under the provisions of Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the "Mello-Roos Community Facilities Act of 1982" (the "Act'), and fixing the time and place for a public hearing on the formation of the Community Facilities District; and WHEREAS, notice was published and mailed to the owner of all of the property in the Community Facilities District as required by law relative to the intention of the City Council to establish the Community Facilities District and the levy of the special taxes therein to provide certain services, and of the time and place of said public hearing; and WHEREAS, on June 19, 2012, at the time and place specified in said published and mailed notices, the City Council opened and held a public hearing as required by law relative to the formation of the Community Facilities District, the levy of the special taxes therein and the provision of services by the Community Facilities District; and WHEREAS, prior to the commencement of said public hearing, there was filed with the City Council a report (the 'Report") containing a description of the services being financed within and for the Community Facilities District, and an estimate of the cost of providing such services, as required by Section 53321.5 of the California Government Code; and WHEREAS, at the public hearing all persons desiring to be heard on all matters pertaining to the formation of the Community Facilities District, the levy of the special taxes and the provision of services therein were heard, and a full and fair hearing was held; and WHEREAS, the City Council may therefore proceed to establish the Community Facilities District; NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL OF THE CITY OF MENIFEE AS FOLLOWS: Section 1. Findings. The City Council finds as follows: (i) all of the preceding recitals are correct, (ii) at its meeting on June 19, 2012, pursuant to notice thereof duly given as provided by law, the City Council conducted the public hearing with respect to the formation of the Community Facilities District and the annual levying of specified special taxes on the taxable property within the Community Facilities District to pay the costs of services for the Community Facilities District which are described in Section 3 hereof, (iii) the boundary map of the Community Facilities District was recorded, pursuant to Sections 3111 and 3113 of the California Streets and Highways Code, on June 4, 2012, at page 61 of Book 25 of Maps of Assessment and Community Facilities Districts, and as Document No. 2012- 29277.00002\7411 792.1 012-29277.00002\7411792.1 Resolution 12-277 CFD 2012-02 0255764, in the official records of the County of Riverside, (iv) no written protests were received at or prior to the time of said hearing against the formation of the Community Facilities District or the levying of said special taxes by the Community Facilities District, and said special taxes have, therefore, not been limited by majority protest pursuant to Section 53324 of the California Government Code, (v) all prior proceedings with respect to the formation of the Community Facilities District conducted by the City Council were valid and in conformity with the requirements of Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code, (vi) the City Council is, therefore, authorized to adopt a resolution of formation pursuant to Section 53325.1 of the California Government Code for the formation of City of Menifee Community Facilities District No. 2012- 02, County of Riverside, State of California, and the Community Facilities District should be established, and (vii) less than 12 persons have been registered to vote within the territory of the Community Facilities District during the 90 days preceding the close of the public hearing and, pursuant to Section 53326 of the California Government Code, the vote in the special election provided for in Section 7 hereof shall, therefore, be by the landowners of the Community Facilities District whose property would be subject to the special taxes if they were levied at the time of the election, and each landowner shall have one vote for each acre, or portion thereof, which he or she owns within the Community Facilities District. Section 2. Formation of District. City of Menifee Community Facilities District No. 2012-02 (Hidden Hills), County of Riverside, State of California, is hereby established. The boundaries of the Community Facilities District are described and shown on the map entitled 'Boundaries of City of Menifee Community Facilities District No. 2012-02 (Hidden Hills), County of Riverside, State of California" which is on file with the City Clerk, and said boundaries are hereby established. Section 3. Types of Services: Incidental Expenses. It is proposed that the community facilities district shall provide and finance certain types of services and related costs, including (i) the maintenance of landscape, which may include but is not limited to all landscaping materials such as turf, ground cover, shrub, trees, plants, irrigation and drainage systems, electricity repair/replacement and inspection, (ii) the maintenance of parks, open space areas, and trails which may include, but is not limited to trees, plant material, sod, irrigation systems, sidewalks, drainage facilities, weed control and other abatements (iii) building of a reserve fund for capital replacement, and (iv) payment of Administrative Expenses, all as more completely described in Exhibit "A" attached hereto and by this reference made a part hereof. Section 4. Special Taxes. Except where funds are otherwise available, special taxes sufficient to pay the costs of services provided in Section 3 above and the annual administrative expenses of the City and the Community Facilities District in determining, apportioning, levying and collecting such special taxes shall be annually levied within the Community Facilities District. The rates and method of apportionment of said special taxes shall be as set forth in Exhibit "B" attached hereto and by this reference made a part hereof. Under no circumstances shall the special tax levied against any parcel subject to the levy of the special tax pursuant to the rates and methods of apportionment be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within the Community Facilities District by more than ten (10) percent. Pursuant to Section 53340 of the California Government Code, the special taxes shall be collected in the same manner as ordinary ad valorem property taxes are collected and - 2 - 29277.00002\7411 792.1 2 - 29277.00002\7411792.1 Resolution 12-277 CFD 2012-02 shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes. 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 non-exempt real property in the Community Facilities District and that lien shall continue in full 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 ceases. The Finance Department of the City of Menifee, 29714 Haun Road, Menifee, California is designated as the office responsible for preparing annually a current roll of special tax levy obligations by assessor's parcel numbers and for estimating future special tax levies pursuant to Section 53340.1 of the California Government Code. Section 5. Exempt Properties. Pursuant to Section 53340 of the California Government Code, properties of entities of the state, federal, and local governments shall be exempt from the levy of special taxes of the proposed community facilities district. Section 6. Report. The Report is hereby approved and is made a part of the record of the public hearing regarding the formation of the Community Facilities District, and is ordered to be kept on file with the City Clerk as part of the transcript of these proceedings. Section 7. Description of Voting Procedures. The voting procedures to be followed in conducting the special election on (i) the proposition with respect to the levy of special taxes on taxable property within the Community Facilities District to pay the costs of the services to be provided by the Community Facilities District, and (ii) the proposition with respect to establishing an appropriations limit for the Community Facilities District in the amount of $5,000,000 (the "special election"), shall be as follows: (a) Except as otherwise provided below, the special election shall be conducted by the City Clerk pursuant to the California Elections Code governing mail ballot elections of cities, and in particular, the provisions of Division 4 (commencing with Section 4000) of said Code, insofar as they may be applicable. (b) The special election shall be held on the earliest date, following the adoption by the City Council of this resolution and a resolution pursuant to Section 53326 of the California Government Code submitting the propositions with respect to (i) the levy of special taxes to pay the costs of the services to be provided by the Community Facilities District, and (ii) establishing an appropriations limit therefor to the qualified electors of the Community Facilities District, upon which such election can be held pursuant to said Section 53326 which may be selected by the City Council, or such earlier date as the owners of land within the Community Facilities District and the City Clerk agree and concur is acceptable. (c) Pursuant to said Section 53326, the special election may be held earlier than 90 days following the close of the public hearing if the qualified electors of the Community Facilities District waive the time limits for conducting the election set forth in said Section 53326 by unanimous written consent and the City Clerk concurs in such earlier election date as shall be consented to by the qualified electors. - 3 - 29277.00002\7411792.1 Resolution 12-277 CFD 2012-02 (d) Pursuant to said Section 53326, ballots for the special election shall be distributed to the qualified electors by the City Clerk by mail with return postage prepaid, or by personal service. (e) Pursuant to applicable sections of the California Elections Code governing the conduct of mail ballot elections of cities, and specifically Division 4 (commencing with Section 4000) of the California Elections Code with respect to elections conducted by mail, the City Clerk shall mail or deliver to each qualified elector an official ballot in a form specified by the City Council in the resolutions calling the election, and shall also mail or deliver to all such qualified electors a ballot pamphlet and instructions to voter, including a sample ballot identical in form to the official ballot but identified as a sample ballot, a statement pursuant to Section 9401 of said Code, an impartial analysis by the City Attorney pursuant to Section 9280 of said Code with respect to the ballot propositions contained in the official ballot, arguments and rebuttals, if any, pursuant to Sections 9281 to 9287, inclusive, and 9295 of said Code, a return identification envelope with prepaid postage thereon addressed to the City Clerk for the return of voted official ballots, and a copy of Resolution No. 12-268; provided, however, that such statement, analysis and arguments may be waived with the unanimous consent of all the landowners. (f) The official ballot to be mailed or delivered by the City Clerk to each landowner voter shall have printed or typed thereon the name of the landowner-voter and the number of votes to be voted by the landowner-voter and shall have appended to it a certification to be signed by the person voting the official ballot which shall certify that the person signing the certification is the person who voted the official ballot, and if the landowner-voter is other than a natural person, that he or she is an officer of or other person affiliated with the landowner-voter entitled to vote such official ballot, that he or she has been authorized to vote such official ballot on behalf of the landowner-voter, that in voting such official ballot it was his or her intent, as well as the intent of the landowner-voter, to vote all votes to which the landowner-voter is entitled based on its land ownership on the 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-voter's land ownership within the Community Facilities District. (g) The return identification envelope mailed or delivered by the City Clerk to each landowner-voter shall have printed or typed thereon the following: (i) the name of the landowner, (ii) the address of the landowner, (iii) a declaration under penalty of perjury stating that the voter is the landowner or the authorized representative of the landowner entitled to vote the enclosed ballot and is the person whose name appears on the identification envelope, (iv) the printed name and signature of the voter, (v) the address of the voter, (vi) the date of signing and place of execution of said declaration, and (vii) a notice that the envelope contains an official ballot and is to be opened only by the City Clerk. (h) The instruction to voter form to be mailed or delivered by the City Clerk to the landowner-voters shall inform them that the official ballots shall be returned to the City Clerk properly voted as provided thereon and with the certification appended thereto properly completed and signed in the sealed return identification envelope with the certification thereon completed and signed and all other information to be inserted thereon properly inserted by 5:00 p.m. on the date of the election. (i) Upon receipt of the return identification envelopes which are returned prior to the voting deadline on the date of the election, the City Clerk shall canvass the votes - 4 - 29277.00002\7411792.1 Resolution 12-277 CFD 2012-02 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. The procedures set forth in this section for conducting the special election, if it is held, may be modified as the City Council may determine to be necessary or desirable by a resolution subsequently adopted by the City Council. APPROVED AND ADOPTED this 19th da of June, 2012. Jo Denver, Mayor ATTEST: Kathy Bennett, City Clerk APPROVED AS TO FORM: Kim Byrens Best, Best & Krieger LLP - 5 - 29277,00002\7411792.1 Resolution 12-277 CFD 2012-02 EXHIBIT "A" RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX CITY OF MENIFEE COMMUNITY FACILITIES DISTRICT NO. 2012-02 (HIDDEN HILLS) 29277.00002\7411792.1 A-1 RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR COMMUNITY FACILITIES DISTRICT NO. 2012-02 (HIDDEN HILLS) OF THE CITY OF MENIFEE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA A Special Tax (all capitalized terms are defined in Section A., "Definitions", below) shall be applicable to each Parcel of Taxable Property located within the boundaries of Community Facilities District No. 2012-02 (Hidden Hills). The amount of Special Tax to be levied in each Fiscal Year, commencing in Fiscal Year 2013-2014 on a Parcel, shall be determined by the by the City Council of the City of Menifee, acting in its capacity as the legislative body of the CFD by applying the appropriate Special Tax as set forth in Sections B., C., and D., below. All of the real property within the CFD, unless exempted by law or by the provisions hereof in Section E., shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre or Acreage" means the land area of a Parcel as indicated on the most recent Assessor's Parcel Map, or if the land area is not shown on the Assessor's Parcel Map, the land area shown on the applicable Final Map, Assessor's Parcel Map, condominium plan, or other recorded County map or the land area calculated to the reasonable satisfaction of the Administrator using the boundaries set forth on such map or plan. The square footage of a Parcel is equal to the Acreage of such Parcel multiplied by 43,580. "Act" means 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 Government Code of the State of California. "Administrative Expenses" means all actual or reasonably estimated costs and expenses of the CFD that are chargeable or allocable to carry out its duties as the Administrator of the CFD as allowed by the Act, which shall include without limitation, all costs and expenses arising out of or resulting from the annual levy and collection of the Special Tax (whether by the City or designee thereof or both), any litigation or appeal involving the CFD, and normal administrative expenses of the City or designee thereof or both. Administrative Expenses shall also include amount estimated or advanced by the City or CFD for attorney's fees and other costs related to commencing and pursuing to completion any foreclosure as a result of delinquent Special Taxes. "Administrator" means an official of the City, or designee thereof, responsible for determining the annual amount of the levy and collection of the Special Taxes. "Approved Property" means all Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which City Of Menifee RMA For CFD No. 2012-02 (Hidden Hills) gill the Special Tax is being levied, and (ii) that have not been issued a Building Permit prior to the April 1st preceding the Fiscal Year in which the Special Tax is being levied. "Assessor" means the Assessor of the County of Riverside. "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 the number assigned to a lot or Parcel for purposes of identification as determined from an Assessor Parcel Map or the applicable assessment roll. "Base Year" means the Fiscal Year ending June 30, 2014. "Boundary Map" means a recorded map of the CFD which indicates by a boundary line the extent of the territory identified to be subject to the levy of Special Taxes. "Building Permit" means the first legal document issued by a local agency giving official permission for new construction. For purposes of this definition, "Building Permit" shall not include any subsequent Building Permits issued or changed after the first issuance. j "CFD" means Community Facilities District No. 2012-02 (Hidden Hills) of the City of Menifee. "City" means the City of Menifee, California "Consumer Price Index" means the Consumer Price Index published by the U.S. Bureau of Labor Statistic for "All Urban Consumers" in the Los Angeles-Riverside- Orange County 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 Administrator that is reasonably comparable to the Consumer Price Index for the Los Angeles- Riverside-Orange County Area. "Council" mean the City Council of the City acting as the legislative body of the CFD. "County" means the County of Riverside, California. "Developed Property" means all Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to January 1'� preceding the Fiscal Year in which the Special Tax is being levied, and (ii) for which a Building Permit for new construction has been issued prior to April 1 s preceding the Fiscal Year in which the Special Tax is being levied. "Dwelling Unit" or "(WU)" 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. City Of Menifee RMA For CFD No. 2012-02 (Hidden Hills) "Exempt Property" means any Parcel which is exempt from Special Taxes pursuant to Section E., below. "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 66410 et seq.) 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 12 month period starting on July 1 of any calendar year and ending the following June 30. "Land Use Class" means any of the classes listed in Table 1, below. "Maximum Special Tax" means for each Fiscal Year, the greatest amount of Special Tax for each Parcel, determined in accordance with Section C., below, which may be levied in such Fiscal Year. "Multifamily Residential Property" means all Parcels of Developed Property that consists of a building or buildings comprised of attached Dwelling Units available for rental by the general public, not for sale to an end user, and under common management. "Non-Residential Property" means all Parcels of Developed Property for which a Building Permit was issued, permitting the construction of one or more non-residential units. "Parcel(s)" means a lot or parcel within the CFD shown on an Assessor's Parcel Map with an assigned Assessor's Parcel Number valid as of July 1st for the Fiscal Year for which the Special Tax is being levied. "Property Owner's Association Property" means all Parcels which have been conveyed, dedicated to, or irrevocably offered for dedication to a Property owner association, including any master or sub-association, prior to April V preceding the Fiscal Year in which the Special Tax is being levied. "Proportionately" means for Taxable Property that is (i) Developed Property, that the ratio of the actual Special Tax levy to Maximum Special Tax is the same for all Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property, and (iii) Undeveloped Property, Public Property and Property Owner's 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 Parcels of Undeveloped Property, Public Property and Property Owner's Association Property. City Of Menifee RMA For CFD No. 2012-02 (Hidden Hills) i "Public Property" means all Parcels which, as of April 151 preceding the Fiscal Year in which the Special Tax is being levied, are (i) used for rights-of-way or any other purpose and is owned by, dedicated to, or irrevocably offered for dedication to the federal government, the State, the County, City or any other public agency, provided, however, that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use; and (ii) encumbered by an unmanned utility easement making impractical its utilization for other that the purpose set forth in the easement. "Reserve Fund" means a fund to be used for capital replacement and maintenance costs. "Reserve Fund Requirement" means an amount up to 100% of the anticipated annual cost of Services, not exceeding $212,000.00 for the Base Year. The Reserve Fund Requirement shall be increased based on the percentage increase in the Consumer Price Index with a maximum annual increase of six percent (6%) and a minimum annual increase of two percent (2%) of the reserve fund requirement in effect in the previous Fiscal Year. "Residential Property" means all Parcels of Developed Property for which a Building Permit has been issued permitting the construction of one or more residential Dwelling Units. "Services" means landscape maintenance to be financed, including streetscape, parks, open space areas, and trails, which are in addition to those services that were provided within the boundaries of the CFD at the time of formation of the CFD. The landscape maintenance may include, but is not limited to all landscaping materials such as turf, ground cover, shrub, trees, plants, irrigation and drainage systems, electricity, repairfreplacement and inspection. The maintenance of parks, open space areas, and trails may include, but is not limited to trees, plant material, sod, irrigation systems, sidewalks, drainage facilities, weed control and other abatements. "Single Family Property" means all Parcels of Residential Property, other than Multifamily Residential Property. "Special Tax(es)" means the special tax to be levied in each Fiscal Year on each Parcel of Taxable Property in accordance with Section D. "Special Tax Requirement" means for each Fiscal Year, that amount required to: (i) pay the estimated cost of Services for such Fiscal Year as determined by the City; (ii) fund the Reserve Fund in an amount equal to the lesser of (a) 20% of the Reserve Fund Requirement or (b) the amount needed to fund the Reserve Fund up to the Reserve Fund Requirement, (iii) pay Administrative Expenses; (iv) pay for the actual or anticipated shortfall due to Special Tax delinquencies in the current or prior Fiscal Year; and (v) less a credit for funds available to reduce the annual Special Tax levy as determined by the Administrator. City Of Menifee RMA For CFD No. 2012-02 (Hidden Hills) "State" means the State of California. "Taxable Property" means all Parcels within the boundary of the CFD pursuant to the Boundary Map which are not exempt from the Special Tax pursuant to Section E., below. "Taxable Unit" means either a Dwelling Unit or an Acre, as shown in Table 1. "Undeveloped Property" means all Parcels of Taxable Property not classified as Developed Property, Approved Property, Public Property or Property Owner's Association Property. B. ASSIGNMENT TO LAND USE CLASS Each Fiscal Year, commencing with Fiscal Year 2013-2014, all Parcels of Taxable Property shall be classified as either Developed Property, Approved Property, Undeveloped Property, Public Property and/or Property Owner's Association Property, and subject to the levy of Special Taxes in accordance with this Rate and Method of Apportionment as determined pursuant to Sections C. and D. Parcels of Developed Property shall further be classified as Residential Property or Non-Residential Property. Parcels of Residential Property shall further be classified as Single Family Property or Multifamily Residential Property. C. MAXIMUM SPECIAL TAX RATES 1. Developed Property The Maximum Special Tax that may be levied and escalated as explained further in Section C.1,(b)., below in any Fiscal Year for each Parcel classified as Developed Property is shown below in Table 1. Table 1 Maximum Special Tax Rates Land Fiscal Year 2013-2014 Use Taxable Maximum Special Tax Class Description Unit Per Taxable Unit 1 Single Family Property D/U $440.00 2 Multifamily Residential Property Acre $2,360.00 3 Non-Residential Property Acre $2,360.00 (a) Increase in the Maximum Special Tax City Of Menifee RMA For CFD No. 2012-02 (Hidden Hills) On each July 1, following the Base Year, the Maximum Special Tax, identified in Table 1, above, shall be increased based on the percentage increase in the Consumer Price Index with a maximum annual increase of six percent (6%) and a minimum annual increase of two percent (2%) of the Maximum Special Tax in effect in the previous Fiscal Year. i (b) Multiple Land Use Classes In some instances a Parcel of Developed Property may contain more than one Land Use Class. The Maximum Special Tax that can be levied on such Parcel shall be the sum of the Maximum Special Tax that can be levied for each Land Use Class located on that Parcel. For a Parcel that contains more than one Land Use Class, the Acreage of such Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determine by reference to the site plan approved for such Parcel. The Administrator's allocation to each Land Use Class shall be final. 2. Approved Property The Maximum Special Tax for each Parcel of Approved Property shall be equal to the product of the applicable Undeveloped Property Maximum Special Tax rate per Acre times the Acreage of such Parcel; provided, however, for a Parcel of Approved Property that has a Building Permit issued and which will become Single Family Property, the Maximum Special Tax for such Parcel of Approved Property shall be calculated pursuant to Section CA as if such Parcel were already designated as Single Family Property. 3. Undeveloped Property The Maximum Special Tax that may be levied and escalated for each Parcel classified as Undeveloped Property is $2,360 per Acre and shall be increased annually, commencing July 1, 2013, based on the percentage increase in the Consumer Price Index with a maximum annual increase of six percent (6%) and a minimum annual increase of two percent (2%) of the Maximum Special Tax in effect in the previous Fiscal Year. 4. Public Property and/or Property Owner's Association Property that is not Exempt Property pursuant to the provisions of Section E. The Maximum Special Tax for each Parcel of Taxable Public Property and/or Property Owners Association Property shall be equal to the product of the applicable Undeveloped Property Maximum Special Tax rate per Acre times the Acreage of such Parcel and shall be increased annually, commencing July 1, 2013, based on the percentage increase in the Consumer Price Index with a maximum annual increase of six percent (6%) and a minimum annual increase of City Of Menifee RMA For CFD No. 2012-02 (Hidden Hills) two percent (2%) of the Maximum Special Tax in effect in the previous Fiscal Year D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2013-2014 and for each following Fiscal Year, the Administrator shall levy the Special Tax on all Taxable Property until the amount of Special Taxes equals the applicable Special Tax Requirement in accordance with the following steps: First: The Special Tax shall be levied Proportionately on each Parcel of Developed Property at up to 100% of the applicable Maximum Special Tax as needed to satisfy the Special Tax Requirement; Second: If additional moneys are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax for Approved Property; r Third: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Parcel of Undeveloped Property at up to 100% of the applicable Maximum Special Tax for Undeveloped Property; Fourth: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, the Special Tax shall be levied Proportionately on each Parcel of Taxable Property that is Public Property and Property Owner's Association Property at up to 100% of the applicable Maximum Special Tax for such Parcel. Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal Year against any Parcel of Residential Property for which a Certificate of Occupancy has been issued be increased by more than ten percent (10%) as a result of a delinquency in the payment of the Special Tax applicable to any other Parcel above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default. E. EXEMPTIONS The CFD shall not levy Special Taxes on up to 80.16 Acres of Public Property and Property Owner's Association Property within the CFD. Exempt Property status will be assigned by the Administrator in the chronological order in which Parcels becomes Public Property and/or Property Owner's Association Property. After the limit of exempt Acres described above has been reached, the Maximum Special Tax obligation for any additional Public Property or Property Owner's City Of Menifee RMA For CFD No. 2012-02 (Hidden Hills) Association Property shall be subject to the levy of the Special Tax as provided for in the fourth step in Section D. I F. MANNER OF COLLECTION The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of j the CFD, and provided further that the CFD may covenant to foreclose and may actually foreclose on Parcels having delinquent Special Taxes as permitted by the Act. G, APPEALS Any taxpayer may file a written appeal of the Special Tax on his/her Parcel(s) with the Administrator, provided that the appellant is current in his/her payments of Special Taxes. During pendency of an appeal, all Special Taxes must be paid on or before the payment due date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The Administrator shall review the appeal, meet with the appellant if the Administrator deems necessary, and advise the appellant of its determination. If the Administrator agrees with the appellant, the Administrator shall grant a credit to eliminate or reduce future Special Taxes on the appellant's Parcel(s). No refunds of previously paid Special Taxes shall be made. The Administrator shall interpret this Rate and Method of Apportionment and make determinations relative to the annual levy and administration of the Special Tax and any taxpayer who appeals, as herein specified. H. TERM OF THE SPECIAL TAX The Special Tax shall be levied annually in perpetuity to meet the Special Tax Requirement, unless terminated earlier by the City. City Of Menifee RMA For CFD No. 2012-02 (Hidden Hills) John V.Denver STATE OF CALIFORNIA ) Mayor COUNTY OF RIVERSIDE ) ss CITY OF MENIFEE ) Thomas Fuhrman Mayor Pro Tem I, Kathy Bennett, City Clerk of the City of Menifee, do hereby certify that the Wallace W.Edgerton foregoing Resolution No. 12-277 was duly adopted by the City Council of the City Councilmember of Menifee at a meeting thereof held on the 19`h day of June, 2012 by the Darcy Kuenzi following vote: Councilmember Ayes: Denver, Edgerton, Fuhrman, Kristjansson, Kuenzi Sue Kristjansson Noes: None Councilmember Absent: None Abstain: None Kathy Bennett, City Clerk 29714 Haun Road Menifee,CA 92586 Phone 951.672.6777 Fax 951.679.3843 www.dtyofinenifee.us