Loading...
HomeMy WebLinkAbout11-21-2017 Item 05 - Avila Ranch Levy CFD Special Assessment Ordinance Adoption Meeting Date: 11/21/2017 FROM: Greg Hermann, Acting Assistant City Manager Prepared By: Lee Johnson, Economic Development Manager SUBJECT: ADOPTION OF AN ORDINANCE ESTABLISHING A SPECIAL TAX FOR THE AVILA RANCH COMMUNITY FACILITIES DISTRICT NO. 2017-1 RECOMMENDATION Adopt Ordinance No. 1642 (2017 Series) establishing a Special Tax for the Avila Ranch Community Facilities District NO. 2017-1. DISCUSSION On October 24, 2017 the City Council voted 5-0 to adopt the Avila Ranch Community Facilities District 2017-1 Resolution of Formation and called for and set the date of the required landowner election to be held on October 26, 2017. On November 7, 2017 the City Council, given the canvass of the election results by the City Clerk, adopted a Resolution Certifying the Election Results and introduced Ordinance No. 1642 (2017 Series), establishing a Special Tax for the Avila Ranch Community Facilities District 2017-1. Ordinance No. 1642 (2017) is now ready for adoption. The Special Tax schedule created by the Ordinance conforms to the Rate and Method of Apportionment included in the Resolution of Formation. The Ordinance will become effective 30 days after its adoption but no special taxes will be levied sooner than July 2018, at which time the City Council, by Resolution, may establish a Special Tax levy for the Avila Ranch Community Facilities District. This levy may be less than, but not higher than, the special tax schedule set forth in the Special Tax Ordinance. CONCURRENCES The Community Development Director concurs that the proposed CFD is consistent with the entitlements granted for the project. The Public Works Director concurs that the revenue generated by the CFD will be sufficient to cover the costs and obligations associated with City services to be provided, and that the mechanism exists to adjust those costs and revenues accordingly. ENVIRONMENTAL REVIEW In accordance with Sections 15162 & 15163 of the CEQA Guidelines, an Addendum to the certified Final Environmental Impact Report (FEIR) prepared for the Avila Ranch project has been prepared to address the formation of a CFD, a funding mechanism intended to implement development under the Avila Ranch project. The Addendum did not find that the CFD would introduce new or modified environmental impacts that were not alread y previously disclosed and analyzed through the certified Final EIR. All mitigation measures prescribed for the approved development project would still apply with the implementation of the CFD, and no new mitigation measures would be required. Further, on October 24, the City determined that the Packet Pg 25 5 formation of a CFD for the Avila Ranch project is categorically exempt from CEQA review pursuant to Section 15306 and 15061(b)(3) of the CEQA Guidelines. FISCAL IMPACT The Avila Ranch CFD provides fiscal mitigation to the City for its revenue shortfall associated with the existing property tax exchange agreement with San Luis Obispo County. Accordingly, it facilitates a positive fiscal impact for the City from the Avila Ranch Project. Attachments: a - Ordinance Levying Special Tax b - Exhibit A - Avila Ranch Rate and Method of Apportinment c - Exhibit B - Avila Ranch CFD - List of Services Packet Pg 26 5 O 1642 ORDINANCE NO. 1642 (2017 Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AS LEGISLATIVE BODY OF AVILA RANCH COMMUNITY FACILITIES DISTRICT NO. 2017-1, LEVYING A SPECIAL TAX AGAINST NONEXEMPT REAL PROPERTY WITHIN THE DISTRICT TO FINANCE CERTAIN FACILITIES, SERVICES AND INCIDENTAL EXPENSES WHEREAS, the City Council of the City of San Luis Obispo has established Avila Ranch Community Facilities District No. 2017-1 (the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982 (Section 53311 et. seq. of the California Government Code) (the “Act”); and WHEREAS, by Resolution No. 10844 (2017 Series), the City Council of the City of San Luis Obispo, in its capacity as legislative body of the District, submitted the levy of a special tax (“Special Tax”) to the qualified electors of the District at a special election called for October 26, 2017 (the “Special Election”); and WHEREAS, by its Resolution No. 10846 (2017 Series), the City Council of the City of San Luis Obispo, in its capacity as legislative body of the District, certified that more than two- thirds of the votes cast at the Special Election were in favor of levying the Special Tax. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, IN ITS CAPACITY AS LEGISLATIVE BODY OF AVILA RANCH COMMUNITY FACILITIES DISTRICT NO. 2017-1, ORDAINS AS FOLLOWS: SECTION 1. The recitals stated above are true and correct. SECTION 2. The Special Tax is levied pursuant to Section 53340 of the Act against all non-exempt parcels of real property within the District at the Rate and Method of Apportionment set forth in Exhibit A, which is incorporated by reference. SECTION 3. Except where funds are otherwise available, the Services Component of the Special Tax shall be levied annually, for an indefinite period, with no expiration or sunset, for the purpose of funding the facilities, services, and incidental expenses described in Exhibit B, which is incorporated by reference (the “Authorized Services and Facilities”). Such annual levies shall be ordered by resolution of the City Council at the same rate or a lower rate than the rate provided by this Ordinance. Notwithstanding the foregoing, no Special Tax to pay for public facilities will be levied against any parcel after Fiscal Year 2035-2036. For the purposes of this Section, “public facilities” does not include services described in Section 53313 of the Act. SECTION 4. The Special Tax is secured by a continuing lien, imposed pursuant to Sections 3114.5 and 3115.5 of the California Streets and Highways Code. This lien is a Packet Pg 27 5 Ordinance No. 1642 (2017 Series) Page 2 O 1642 continuing lien against all nonexempt real property in the District, and shall secure each levy of the Special Tax. SECTION 5. The Special Tax shall be collected in the same manner as ordinary ad valorem property taxes are collected and 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. SECTION 6. Proceeds of the Special Tax will be deposited in a special account and used only for the purpose of financing Authorized Expenses. SECTION 7. An annual report will be filed by the Finance Officer of the City at least once a year containing a description of the amount of funds and the status of an y project that is an Authorized Expense. SECTION 8. The City does not, solely by virtue of this Ordinance, or solely by virtue of the levy or collection of the Special Tax, assume any obligation to provide any particular service or to purchase, construct, expand, improve, or rehabilitate any property of any particular kind. SECTION 9. The City’s Department of Finance, which is located which is located at 990 Palm Street, San Luis Obispo, CA and whose telephone number is (805) 781-7124 (the “Finance Department”), will be responsible for preparing the annual roll of Special Tax obligations with respect to the District and for estimating future tax levies pursuant to Section 53340.2 of the Act. SECTION 10. The City Council has not specified conditions under which the obligation to pay the Special Tax against a particular parcel of land may be prepaid and permanently satisfied. SECTION 11. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held to be invalid or unconstitutional by any court of competent jurisdiction, such decision shall not affect the validity of the remainder of the Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, sentence, clause, phrase or portion hereof, irrespective of that fact that any one or more sections, subsections, sentences, clauses, phrases or portions be declared invalid or unconstitutional. SECTION 12. The City Clerk shall certify to the adoption of this Ordinance and shall cause this ordinance, or a summary thereof, to be published as required by law. INTRODUCED on the ____ day of ____, 2017, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ____ day of ____, 2017, on the following vote: AYES: NOES: ABSENT: Packet Pg 28 5 Ordinance No. 1642 (2017 Series) Page 3 O 1642 ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Carrie Gallagher City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this ______ day of ______________, _________. ______________________________ Carrie Gallagher City Clerk Packet Pg 29 5 A-1 EXHIBIT A City of San Luis Obispo Avila Ranch Community Facilities District No. 2107-1 (Services) San Luis Obispo County, California AMENDED RATE, METHOD OF APPORTIONMENT, AND MANNER OF COLLECTION OF SPECIAL TAX 1. Basis of Special Tax Levy A Special Tax authorized under the Mello-Roos Community Facilities Act of 1982 (Act) applicable to the land in the Avila Ranch Community Facilities District No.2017-1 (Services) (CFD) of the City of San Luis Obispo (City) shall be levied and collected according to the tax liability determined by the City through the application of the appropriate amount or rate, as described below. 2. Definitions “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, Sections 53311 and following of the California Government Code. “Administrative Expenses” means the actual or estimated costs incurred by the City to form the CFD and to determine, levy, and collect the Special Taxes, including compensation of City employees for administrative work performed in relation to the CFD, the fees of consultants and legal counsel, the costs of collecting installments of the Special Taxes on the general tax rolls, preparation of required reports, and any other costs required to administer the CFD as determined by the City. “Administrator” means the City Manager of the City, or her or his designee. “Affordable Unit” means a Unit built on a Parcel of Single-Family Parcel for which an Affordable Housing Agreement has been entered into for the property designating the Unit as affordable. The City Manager, or its designee, shall determine which Units are designated as Affordable Units and maintain an Affordable Unit Listing, which shall contain all designated buildable parcels by tract and lot number, and in the case of Large Lots Parcels remaining before May 1 of the preceding Fiscal Year, the number of designated Affordable Units for each such Large Lot Parcel; all entries shall indicate the effective date of designation. The Affordable Unit Listing also shall be updated to reflect those Units no longer qualifying as Affordable Units, also known as Market- Rate Units. The Affordable Unit Listing, which shall contain all qualifying Affordable Units as of April 30, shall be made available to the Administrator by July 1 of each year for purposes of determining the Maximum Special Tax for Parcels pursuant to Section 4. Packet Pg 30 5 Avila Ranch CFD No. 2017-1 (Services) Rate and Method of Apportionment and Manner of Collerciton of Special Tax October 11, 2017 . A-2 C:\users\hgoodwin\appdata\roaming\iqm2\minutetraq\slocityca@slocityca.iqm2.com\work\attachments\3455.docx “Annual Infrastructure Costs” means for each Fiscal Year, the total cost of (1) Authorized Facilities and (2) any amounts needed to cure actual or estimated delinquencies in Special Taxes for the current or previous Fiscal Year. “Annual Services Costs” means for each Fiscal Year, the total cost of (1) Authorized Services, (2) Administrative Expenses, and (3) any amounts needed to cure actual or estimated delinquencies in Special Taxes for the current or previous Fiscal Year. “Assessor’s Parcel Map” means an official map of the County Assessor designating parcels by Assessor’s Parcel Number. “Assessor's Parcel Number” means the Parcel and Parcel number as recorded by the County Assessor on the equalized tax roll. “Authorized Facilities” means those facilities, as listed in the resolution forming the CFD. “Authorized Services” mean those services, as listed in the resolution forming the CFD. “Base Year” means the Fiscal Year beginning July 1, 2018 and ending June 30, 2019. “Building Permit” means a permit issued by the City for the construction of a Residential Use structure. “Building Square Foot(age)” has the same meaning as that defined for the School Mitigation Fee by California Government Code Section 65995 for “Assessable Space,” which is “all of the square footage within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, detached accessory structure, or similar area” as determined upon issuance of the initial Building Permit. “CFD” means the Avila Ranch Community Facilities District No. 2017-1 (Services) of the City of San Luis Obispo, San Luis Obispo County, California. “City” means the City of San Luis Obispo in San Luis Obispo County, California. “Council” means the City Council of the City of San Luis Obispo acting for the CFD under the Act. “County” means the County of San Luis Obispo, California. “County Assessor’s Parcel” means a lot or Parcel with an assigned Assessor’s Parcel Number in the maps used by the County Assessor in the preparation of the tax roll. “Developed Parcel” means any Taxable Parcel with a Building Permit issued for Residential Uses. “Development Plan” means a condominium plan, apartment plan, site plan, or other development plan that identifies such information as the type of structure, acreage, square footage, or number of Units that are approved to be developed on Single Family Parcels and Multifamily Residential Use Parcels. “Final Map Parcel” means a Parcel designated for development as a single-family residence which is part of a Final Subdivision Map. Packet Pg 31 5 Avila Ranch CFD No. 2017-1 (Services) Rate and Method of Apportionment and Manner of Collerciton of Special Tax October 11, 2017 . A-3 C:\users\hgoodwin\appdata\roaming\iqm2\minutetraq\slocityca@slocityca.iqm2.com\work\attachments\3455.docx “Final Subdivision Map” means a recorded map designating the final Parcel Subdivision for individual single family residential Parcels. “Fiscal Year” means the period starting July 1 and ending the following June 30. “Infrastructure Special Tax” means the Special Tax identified in Attachment 1 for each Land Use Category identified to fund the costs of Authorized Facilities. The Infrastructure Special Tax is increased by the Infrastructure Special Tax Escalation Factor in each Fiscal Year following the Base Year. “Infrastructure Special Tax Escalation Factor” means a factor of 2 percent in any Fiscal Year following the Base Year by which the Special Tax for the previous Fiscal Year will be increased for the current Fiscal Year. “Land Use Category” means the categories of taxable land uses shown in Attachment 1. “Large Lot Parcel” means a Parcel created by a Large Lot Subdivision Map. “Large Lot Subdivision Map” means a recorded subdivision map creating Parcels by land use. However, the Large Lot Subdivision Map does not delineate Single-Family Parcels. A Final Subdivision Map will create individual Single Family Parcels. “Market-Rate Unit” means a Unit that is not an Affordable Unit. “Maximum Annual Special Tax” means the greatest amount of Special Tax that can be levied against a Parcel in a given Fiscal Year. The Maximum Annual Special Tax is the sum of the Fiscal Services Special Tax and Infrastructure Special Tax assigned to each Taxable Parcel. “Maximum Annual Special Tax Revenue” means the greatest amount of revenue that can be collected in total from a group of Parcels (such as Developed Parcels) by levying the Special Tax. “Multifamily” or “Multifamily Residential Use” means any Parcel or Development Project designated or developed for more than one residential dwelling unit per parcel. Such uses may consist of apartments, condominiums, townhomes, time-share units, row houses, duplexes, or triplexes. “Municipal Costs Index” means the index published by American City & County. “Other Land Use” means a Parcel with land uses other than Residential Uses. Such Parcels are Tax-Exempt Parcels “Parcel” means any County Assessor’s Parcel in the CFD based on the equalized tax rolls of the County. “Public Parcel” means any Parcel that is or is intended to be publicly owned, as designated in any final map that is normally exempt from the levy of general ad valorem property taxes under California law, including public streets; schools; parks; and public drainageways, landscaping, wetlands, greenbelts, and open space. “Remainder Parcel” means a Parcel that is created as the result of the recordation of a Large Lot Parcel Map or Final Small Lot Subdivision Map, which results in a Parcel within the boundaries of a Large Lot Parcel, that has not been mapped for final development approval. Such a Packet Pg 32 5 Avila Ranch CFD No. 2017-1 (Services) Rate and Method of Apportionment and Manner of Collerciton of Special Tax October 11, 2017 . A-4 C:\users\hgoodwin\appdata\roaming\iqm2\minutetraq\slocityca@slocityca.iqm2.com\work\attachments\3455.docx Remainder Parcel may contain taxable and tax-exempt uses, such as Residential Uses, and Public Parcels, such as school or park sites. Once designated as a Remainder Parcel, such Parcel will be considered a Large Lot Parcel for the purposes of future Subdivision s and for the provisions of Sections 4 through 6. “Residential Use” means a Parcel designated for residential use, such as single family residential units, residential condominiums, townhouses, Multifamily Residential Uses, or apartments. “RMA” means the Rate and Method of Apportionment of the Special Tax. “Services Special Tax” means the Special Tax identified in Attachment 1 for each Land Use Category identified to fund the costs of Authorized Services. The Services Special Tax is increased by the Services Special Tax Escalation Factor in each Fiscal Year following the Base Year. “Services Special Tax Escalation Factor” an annual percentage increase in the Fiscal Mitigation Special Tax and Local Area Special Tax based upon the Consumer Price Index (CPI) (prior calendar year annual average, San Francisco, All Urban Consumers (CPI-U) Index), the CPI (prior calendar year annual average, Pacific West Cities, All Urban Wage Earners and Clerical Workers), or the Municipal Cost Index annual average, whichever is greater, but not exceeding four (4) percent. “Single Family Parcel” means, in any Fiscal Year, all Parcels in the CFD for which a building permit was issued or may be issued for construction of a Unit that is a single family residential, residential condominium, or townhouse Unit. “Special Tax(es)” mean(s) any tax levy under the Act in the CFD. “Subdivision” or “Subdivided” means a division of a Parcel into two or more Parcels through the Subdivision Map Act process. A Subdivision may also include the mer ging of two or more Parcels to create new Parcels. “Tax Collection Schedule” means the document prepared by the Administrator for the County Auditor-Controller to use in levying and collecting the Special Taxes each Fiscal Year. “Taxable Parcel” means any Parcel that is not a Tax-Exempt Parcel. “Tax-Exempt Parcel” means a Parcel not subject to the annual Special Tax. Tax-Exempt Parcels include Public Parcels, Undeveloped Parcels, and Other Use Parcels. Certain privately-owned Parcels also may be exempt from the levy of annual Special Taxes including common areas owned by homeowner’s associations or property owner associations, wetlands, detention basins, water quality ponds, and open space, as determined by the Administrator. “Undeveloped Parcel” means a Parcel that is a Large Lot Parcel or Remainder Parcel. “Unit” means (a) for Single Family Parcel dwelling unit; and (b) for Multifamily Residential Use Parcel, such as an individual residential unit in an apartment building. Packet Pg 33 5 Avila Ranch CFD No. 2017-1 (Services) Rate and Method of Apportionment and Manner of Collerciton of Special Tax October 11, 2017 . A-5 C:\users\hgoodwin\appdata\roaming\iqm2\minutetraq\slocityca@slocityca.iqm2.com\work\attachments\3455.docx 3. Duration of the Special Tax Parcels in the CFD will remain subject to the Services Special Tax in perpetuity. Parcels in the CFD will be subject to the Infrastructure Special Tax through FY 2035-36. If the Special Tax ceases to be levied, the City will direct the County Recorder to record a Notice of Cessation of Special Tax. Such notice will state that the obligation to pay the Special Tax has ceased and that the lien imposed by the Notice of Special Tax Lien is extinguished. The Notice of Cessation of Special Tax, in addition, will identify the book and page of the Book of Maps of Assessment and Community Facilities Districts where the map of the boundaries of the CFD is recorded. 4. Administrative Tasks Administrative tasks required of the Administrator are discussed below: A. Annual Special Tax Escalation. The Administrator shall increase the Fiscal Mitigation Special Tax and Local Area Special Tax by the Services Special Tax Escalation Factor in each Fiscal Year following the Base Year. The Administrator shall increase the Infrastructure Special Tax Infrastructure Special Tax Escalation Factor in each Fiscal Year following the Base Year. B. Assignment of the Maximum Annual Special Tax to Taxable Parcels. As Taxable Parcels are Subdivided or combined, the Administrator will assign the Maximum Annual Special Tax to each new Taxable Parcel based on the records of the City: 1. Assignment of the Maximum Annual Special Tax to Developed Parcels. The Services Special Tax and Infrastructure Special Tax are assigned to Developed Parcels using the following procedures. a. Identify the Building Square Footage for the Residential Use for the Taxable Parcel, as identified in the Building Permit. b. Identify the Land Use Category for the Taxable Parcel based upon the Residential Use type and Building Square Footage in Attachment 1. c. Assign the Services Special Tax for the Taxable Parcel based upon the Land Use Category using the criteria identified in Sections 4.B.1.a and 4.B.1.b, and as increased by the Services Special Tax Escalation Factor and Infrastructure Special Tax Escalation Factor. d. Assign the Infrastructure Special Tax for the Taxable Parcel based upon the Land Use Category using the criteria identified in Sections 4.B.1.a and 4.B.1.b, and as increased by the Infrastructure Special Tax Escalation Factor. e. Sum the Services Special Tax and Infrastructure Special Tax to determine the Maximum Annual Special Tax for the Taxable Parcel. Packet Pg 34 5 Avila Ranch CFD No. 2017-1 (Services) Rate and Method of Apportionment and Manner of Collerciton of Special Tax October 11, 2017 . A-6 C:\users\hgoodwin\appdata\roaming\iqm2\minutetraq\slocityca@slocityca.iqm2.com\work\attachments\3455.docx 2. Assignment of the Maximum Annual Special Tax to Final Map Parcels. The Services Special Tax and Infrastructure Special Tax are assigned to Final Map Parcels using the following procedures. a. Assign the Services Special Tax for the Final Map Parcel, as shown in Attachment 1, and as increased by the Services Special Tax Escalation Factor. b. Assign the Infrastructure Special Tax for the Final Map Parcel, as shown in Attachment 1, and as increased by the Infrastructure Special Tax Escalation Factor. c. Sum the Services Special Tax and Infrastructure Special Tax to determine the Maximum Annual Special Tax for the Taxable Parcel. 3. Assignment of the Maximum Annual Special Tax to Undeveloped Parcels. Undeveloped Parcels are not subject to the Maximum Annual Special Tax. C. Affordable Units that Become Market Rate Units. If, in any Fiscal Year, a Unit that previously had been designated as an Affordable Unit no longer qualifies as such, the City shall update the Affordable Unit Listing by denoting the change in status of the Unit, together with the effective date thereof. The Maximum Annual Special Tax on the Unit that no longer qualifies as an Affordable Unit shall be increased to double the amount that would have applied in that Fiscal Year if the Unit had remained as an Affordable Unit. In subsequent Fiscal Years, this increased Maximum Annual Special Tax shall continue to escalate by the Tax Escalation Factor. D. Conversion of a Tax-Exempt Parcel to a Taxable Parcel. If a Tax-Exempt Parcel is not needed for public use and is converted to a taxable use or transferred to a private owner, it shall become subject to the Special Tax. The Maximum Annual Special Tax for such a Parcel will be assigned according to the provisions of Section 4.A and 4.B. E. Taxable Parcel Acquired by a Public Agency. A Taxable Parcel acquired by a public agency shall be reclassified as a Tax-Exempt Parcels and is no longer subject to the Special Tax levy. F. Maintenance of Parcel Records. The Administrator will maintain a development status for each Parcel within the CFD as Parcels are Subdivided and developed. The record will contain the Assessor’s Parcel Number, Land Use Category, number of Units per Taxable Parcel, the Fiscal Mitigation Special Tax, Local Area Special Tax, Infrastructure Special Tax, and Maximum Annual Special Tax for each Taxable Parcel. 5. Assignment of the Maximum Annual Special Tax A. Classification of Parcels. By June 30 of each Fiscal Year, using the Definitions in Section 2, the Administrator shall cause: 1. Each Parcel to be classified as a Taxable Parcel or Tax-Exempt Parcel. 2. Each Parcel to be classified as a Developed Parcel, Final Map Parcel, or an Undeveloped Parcel. Packet Pg 35 5 Avila Ranch CFD No. 2017-1 (Services) Rate and Method of Apportionment and Manner of Collerciton of Special Tax October 11, 2017 . A-7 C:\users\hgoodwin\appdata\roaming\iqm2\minutetraq\slocityca@slocityca.iqm2.com\work\attachments\3455.docx B. Assignment of the Maximum Annual Special Tax to Taxable Parcels. The Maximum Annual Special Tax will be assigned to each Taxable Parcel each Fiscal Year using the procedures (not all steps may be applicable for each such Parcel) in Section 4. 6. Calculating Annual Special Taxes The Administrator will compute the Annual Costs and determine the annual Special Tax levy for each Taxable Parcel based on the assignment of the Special Tax in Section 5. The Administrator will then determine the tax levy for each Taxable Parcel using the following process: A. Compute the Annual Services Costs using the definition of Annual Services Costs in Section 2. B. Calculate the Services Special Tax levy for each Taxable Parcel by the following steps: Step 1: Compute 100 percent of the Services Special Tax revenue for all Developed Parcels. Step 2: Compare the Annual Services Costs with the amount calculated in the previous step. Step 3: If the Annual Services Costs are lower than the amount calculated in Step 1, decrease proportionately the Services Special Tax levy for each Developed Parcel until the revenue from the Special Tax levy equals the Annual Services Costs. Step 4: If the Annual Services Costs are greater than the amount calculated in Step 1, increase proportionately the Services Special Tax levy for each Final Map Parcel until the revenue from the Special Tax levy equals the Annual Services Costs, or 100 percent of the Services Special Tax for all Final Map Parcels, if needed to fund Annual Services Costs. C. Compute the Annual Infrastructure Costs using the definition of Annual Infrastructure Costs in Section 2 D. Calculate the Infrastructure Special Tax levy for each Taxable Parcel by the following steps: Step 1: Compute 100 percent of the Infrastructure Special Tax revenue for all Developed Parcels. Step 2: Compare the Annual Infrastructure Costs with the amount calculated in the previous step. Step 3: If the Annual Infrastructure Costs are lower than the amount calculated in Step 1, decrease proportionately the Infrastructure Special Tax levy for each Developed Parcel until the revenue from the Special Tax levy equals the Annual Infrastructure Costs. Step 4: If the Annual Infrastructure Costs are greater than the amount calculated in Step 1, increase proportionately the Infrastructure Special Tax levy for each Final Map Parcel until the revenue from the Special Tax levy equals the Annual Services Costs, or 100 percent of the Services Special Tax for all Final Map Parcels, if needed to fund Annual Infrastructure Costs. Packet Pg 36 5 Avila Ranch CFD No. 2017-1 (Services) Rate and Method of Apportionment and Manner of Collerciton of Special Tax October 11, 2017 . A-8 C:\users\hgoodwin\appdata\roaming\iqm2\minutetraq\slocityca@slocityca.iqm2.com\work\attachments\3455.docx E. Sum the amount determined in Sections 6.B and 6.D above. F. Levy on each Taxable Parcel the amount calculated in Section 6.E above. G. Prepare the Tax Collection Schedule and, unless an alternative method of collection has been selected pursuant to Section 9, send it to the County Auditor requesting that it be placed on the general, secured property tax roll for the Fiscal Year. The Tax Collection Schedule will not be sent later than the date required by the Auditor for such inclusion. The Administrator will make every effort to correctly calculate the Special Tax for each Parcel. It will be the burden of the taxpayer to correct any errors in the determination of the Parcels subject to the tax and their Special Tax assignments. 7. Interpretation, Application and Appeal of Special Tax Formula and Procedures Any taxpayer who feels that the amount of the Special Tax assigned to a Parcel is in error may file a notice with the Administrator appealing the levy of the Special Tax. The Administrator will then promptly review the appeal, and if necessary, meet with the applicant. If the Administrator verifies that the tax should be modified or changed, the Special Tax levy will be corrected and, if applicable in any case, a refund will be granted. Interpretations may be made by Resolution of the Council for purposes of clarifying any vagueness or ambiguity as it relates to the Special Tax rate, the method of apportionment, the classification of properties, or any definition applicable to the CFD. Without Council approval, the Administrator may make minor, non-substantive administrative and technical changes to the provisions of this Exhibit that do not materially affect the rate, method of apportionment, and manner of collection of the Special Tax for purposes of the administrative efficiency or convenience or to comply with new applicable federal, state or local law. 8. Prepayment of the Special Tax Obligation The Special Tax for a Taxable Parcel may not be prepaid. The Special Tax is collected to fund Authorized Services in perpetuity, or until the Council determines that the Special Tax should no longer be collected. 9. Manner of Collection The Special Tax will be collected in the same manner and at the same time as ad valorem property taxes, provided, however, that the Administrator or its designee may directly bill the Special Tax and may collect the Special Tax at a different time, such as on a monthly or other periodic basis, or in a different manner, if necessary, to meet the City’s financial obligations. Packet Pg 37 5 Avila Ranch CFD No. 2017-1 (Services) Rate and Method of Apportionment and Manner of Collerciton of Special Tax October 11, 2017 . A-9 C:\users\hgoodwin\appdata\roaming\iqm2\minutetraq\slocityca@slocityca.iqm2.com\work\attachments\3455.docx Attachment 1 Avila Ranch CFD No. 2017-1 (Services) Maximum Annual Special Tax - Base Year of FY 2018-19 No. of Services Infrastructure Maximum Annual Land Use Category Units Special Tax Special Tax Special Tax [1][2] [3][4] Single Family Residential - ≥ 1,500 Sq. Ft.322 $2,749.80 $300.00 $3,049.80 Single Family Residential - <1,500 Sq. Ft.76 $1,832.86 $200.00 $2,032.86 Multifamily Residential - ≥ 1,500 Sq. Ft.38 $2,749.80 $300.00 $3,049.80 Multifamily Residential - < 1,500 Sq. Ft.252 $1,832.86 $200.00 $2,032.86 Affordable Multifamily Residential 32 $916.43 $100.00 $1,016.43 Undeveloped Parcels [5] Other Land Uses $0.00 $0.00 $0.00 Public and Deed Restricted Land $0.00 $0.00 $0.00 "att1" [1] This Special Tax rate will be increased by the Services Special Tax Escalator in each Fiscal Year following the Base Year of FY 2018-19. [2] This Special Tax rate will be increased by the Infrastructure Special Tax Escalator in each Fiscal Year following the Base Year of FY 2018-19. [3] This Special Tax may be collected in each Fiscal Year through FY 2035-36. This Special Tax will no longer be collected following FY 2035-36. [4] Beginning with FY 2035-39, the Maximum Annual Special Tax will be equal to the Services Special Tax as the Infrastructure Special Tax will no longer be collected beyond FY 2035-36.. [5] Undeveloped Parcels are Final Map Parcels without a Building Permit. Packet Pg 38 5 Exhibit B City of San Luis Obispo CFD No. 2017 -1 (Services ) Draft List of Authorized Services List of Authorized Services The authorized services to be funded from the levy and collection of annual special taxes include those set forth below in addition to the costs associated with collecting and administering the special taxes, annually administering the District, and costs associated with forming the District. The authorized services to be funded include: 1. Maintenance and lighting of parks, parkways, streets, roads, and open space. 2. Flood and storm protection services, including, but not limited to, the operation and maintenance of storm drainage systems. 3. Police protection services, including, but not limited to, criminal justice services. However, criminal justice services shall be limited to providing services for jails, detention facilities, and juvenile halls. 4. Fire protection and suppression services, and ambulance and paramedic services. 5. 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 local agency or by another local agency pursuant to an agreement entered into under Section 53316.2. List of Authorized Facilities The authorized facilities to be funded from the levy and collection of annual special taxes include: 1. Local park, recreation, parkway, and open-space facilities. 2. The district may also finance the construction or undergrounding of water transmission and distribution facilities, natural gas pipeline facilities, telephone lines, facilities for the transmission or distribution of electrical energy, and cable television lines to provide access to those services to customers who do not have access to those services or to mitigate existing visual blight. 3. The district may also finance the acquisition, improvement, rehabilitation, or maintenance of any real or other tangible property, whether privately or publicly owned, for flood and storm protection services, including, but not limited to, storm drainage and treatment systems and sandstorm protection systems. 4. A community facilities district may also finance the purchase, construction, expansion, improvement, or rehabilitation of any real or other tangible property with an estimated useful life of five years or longer or may finance planning and design work that is directly related to the purchase, construction, expansion, or rehabilitation of any real or tangible property. The facilities need not be physically located within the Dstrict. Packet Pg 39 5 Page intentionally left blank. Packet Pg 40 5 THE Newspaper of the Central Coast r NOV Y r5 2017 3825 South Higuera • Post Office Box 112 • San Luis Obispo, California 93406-0112 • (805) 781-7800 In The Superior Court of The State of California In and for the County of San Luis Obispo AD #3384453 CITY OF SAN LUIS OBISPO OFFICE. OF THE CITY CLERK STATE OF CALIFORNIA Ss. County of San Luis Obispo I am a citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen and not interested in the above entitled matter; I am now, and at all times embraced in the publication herein mentioned was, the principal clerk of the printers and publishers of THE TRIBUNE, a newspaper of general Circulation, printed and published daily at the City of San Luis Obispo in the above named county and state; that notice at which the annexed clippings is a true copy, was published in the above-named newspaper and not in any supplement thereof — on the following dates to wit; NOVEMBER 11, 2017 that said newspaper was duly and regularly ascertained and established a newspaper of general circulation by Decree entered in the Superior Court of San Luis Obispo County, State of California, on June 9, 1952, Case #19139 under the Government Code of the State of California. I certify (or declare) under the penalty of perjury that the foregoing is true and correct. (SigUtture of Principal Clerk) DATE: NOVEMBER 11, 2017 AD COST: $167.04 cITY OF S.fI! WN OBI SPO ORDINANCE NO. 1642 (2017 SERIES) AN ORDINANCE OF THE CITY COUN- CIL OF THE CITY OF SAN LUIS OBI - SPO, CALIFORNIA, AS LEGISLATIVE BODY OF AVILA RANCH COMMUNITY FACILITIES DISTRICT NO. 2017-1, LEVYING A SPECIAL TAX AGAINST NONEXEMPT REAL PROPERTY WITHIN THE DISTRICT TO FINANCE CERTAIN FACILITIES, SERVICES AND INCIDEW TAL EXPENSES NOTICE IS HEREBY GIVEN that the City - Council of the City of San Luis Obispo, Cal- ifornia, at its Regular Meeting of November 7, 2017, introduced the above titled ordi- nance upon a motion by Vice Mayor Rlvoire, second by Council Member Christi- anson, and on the following roll call vote: AYES: Council Members Christianson, ©prne7., and Pease, Vice Mayor Rivoire, and Mayor Harmon NOES: None Ortl1011cg Nq.1§12 017 Sarlas) —This Is a City Ordinance to levy the Speciel Tax, pursuant to Section 53340 of The Mello- Roo3 Community Fadlillos Act of 19132, against all non-exempt parceIs of real prop- erty within the Avila Ranch Community Fa- etlilles District to finance certain facilities, servicas and incidental expenses. A full and complete copy of the Ordinance Is available for inspection and copy in the City Clerk's Office, located at 990 Palm Street. San Luis Obispo, California, or you may call (805) 781-7100 for more informa- tion, NOTICE IS HEREBY FURTHER GIVEN that the City Council of the City of San Luis Obispo will consider final adoption of the Ordinance at Its Regular Meeilno of No- vember, 21, 2017 at 6:00 p.m., whleh will be held in the Council Chamber, located at 990 Palm Street, San Luis Obispo, Califor- nia. Carrie Gallagher City Clerk November 17, 2017 3384453