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HomeMy WebLinkAboutD-1 Staff Report - Public Hearing Establishing 2017-1 CFDSCHEDULED ITEM D-1 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: TROY L. BUTZLAFF, ICMA-CM, CITY MANAGER FROM: TALIKA JOHNSON, DIRECTOR OF FINANCE DATE: JUNE 19, 2017 SUBJECT: PUBLIC HEARING - FORMATION PROCEEDINGS FOR PROPOSED CITY OF AZUSA COMMUNITY FACILITIES DISTRICT NO. 2017-1 – RESOLUTIONS AND ORDINANCE SUMMARY: At its May 15, 2017 City Council meeting, the City Council adopted Resolution No. 2017-C31, initiating the formation of a Mello-Roos Community Facilities District (“CFD”) for the purpose of partially funding public safety services required by new development located within the City and also set the time and place of a public hearing to consider formation of the CFD. The proposed actions consist of conducting the Public Hearing and adopting three resolutions and one ordinance, which together will form City of Azusa Community Facilities District 2017-1 (“CFD 2017-1”) and levy special taxes on the property within the boundaries of CFD 2017-1. RECOMMENDATION: Staff recommends that the City Council take the following actions: 1) Open the Public Hearing, receive public testimony, close the Public Hearing; 2)Adopt the attached Resolution 2017-C40, Establishing City of Azusa Community Facilities District No. 2017-1 and Establishing the Boundaries Thereof. 3)Adopt the attached Resolution No. 2017-C41, Calling a Special Election on Propositions with Respect to the Annual Levy of Special Taxes and Establishing an Appropriations Limit: If these resolutions are approved, the City Clerk will conduct the Special Election as described below and tabulate the results. The City Clerk will then present a report to the City Council regarding the results, and if the ballot propositions are approved, it is recommended that the City Council: 1) Adopt the attached Resolution No. 2017-C42, Declaring the Results of the Consolidated Special Election within the Community Facilities District. 2) Introduce, waive further reading and read by title only Ordinance No. 2017-04, Levying Special Taxes to be Collected During Fiscal Year 2017-18 within the Community Facilities District APPROVED CITY COUNCIL 6/19/2017 Public Hearing Forming CFD 2017-1 June 19, 2017 Page 2 DISCUSSION: The City commenced formation proceedings for CFD No. 2017-1 in order to pay for public safety services via a special tax to be levied on new development within the City. On May 15, 2017 the City Council adopted Resolution No. 2017-C31 declaring its intention to establish the proposed CFD and calling for a Public Hearing on June 19, 2017. In preparation for the public hearing, the following required documents have been received by the City Clerk and are on file in his office: 1. Written waivers executed by Olson Urban II – Azusa I, LLC and the City of Azusa, together representing the ownership interests of all taxable property within the proposed CFD 2017-1, and such waiver consents to scheduling the election on June 19, 2017, immediately following the public hearing. 2. A letter from the City Clerk consenting to conducting the election on June 19, 2017. 3. Notice of the public hearing which has been published in the San Gabriel Valley Tribune and mailed to the property owners as required by Resolution No. 2017-C31. 4. A Statement of Engineer executed on behalf of Special District Financing & Administration, the special tax consultant for CFD 2017-1, with regard to property ownership within the CFD. 5. A CFD Report prepared by Special District Financing & Administration, Special Tax Consultant, describing the types and estimated costs of services funded by taxes of the CFD. 6. A letter from the Registrar of Voters determining that there are no registered voters residing within the boundaries of the CFD. Since there are no registered voters residing within the CFD, the vote in the election will be by landowners. Each landowner will have one vote for each acre or portion of an acre of land that it owns. 7. A copy of the boundary map which was recorded in the Office of the Recorder of the County of Los Angeles on May 16, 2017. At the conclusion of the public hearing, if the City Council wishes to proceed with the formation of the District and calling the election, the City Council will adopt the following resolutions: 1) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA ESTABLISHING CITY OF AZUSA COMMUNITY FACILITIES DISTRICT 2017-1 AND ESTABLISHING THE BOUNDARIES THEREOF. 2) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA CALLING A SPECIAL ELECTION ON PROPOSITIONS WITH RESPECT TO THE ANNUAL LEVY OF SPECIAL TAXES AND ESTABLISHING AN APPROPRIATIONS LIMIT. The Resolution of Formation specifies that special taxes will be levied on all parcels of taxable property within the District to pay for: (i) fire protection and suppression services and (ii) police protection services. The Community Facilities District shall also finance costs associated with the determination of the amount of and the levy and collection of special taxes which are levied to provide such services and costs otherwise incurred in order to carry out the authorized purposes of the Community Facilities District. These resolutions schedule the election on June 19, 2017, immediately following the public hearing. If approved by the City Council, the City Clerk will then conduct the election, tabulate the ballots and present a report to the City Council regarding the results of the election. Provided the Owners approve of the ballot propositions, the City Council will then adopt the following resolution and introduce the following ordinance: Public Hearing Forming CFD 2017-1 June 19, 2017 Page 3 1) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA DECLARING THE RESULTS OF THE CONSOLIDATED SPECIAL ELECTION WITHIN THE COMMUNITY FACILITIES DISTRICT. 2) ORDINANCE LEVYING SPECIAL TAXES TO BE COLLECTED DURING FISCAL YEAR 2017-2018 WITHIN THE COMMUNITY FACILITIES DISTRICT. Following adoption of the Resolution Declaring the Results of the Consolidated Special Election and the introduction of Ordinance Levying Special Taxes, the City Clerk will sign and record a Notice of Special Tax Lien which levies special taxes on all parcels of taxable property within CFD 2017-1, which is the final step in the formation of the community facilities district. The resolutions and related documents have been prepared and reviewed by the City’s financing team which includes bond counsel (Best Best & Krieger LLP), special tax consultant (Special District Financing & Administration), as well as staff from the City’s Finance Department and the City Attorney’s Office. FISCAL IMPACT: The proposed CFD 2017-1 formation has a projected positive fiscal impact to the City, as the additional services needed from new development will be paid for by the development creating the impact on City services. Prepared by: Reviewed and Approved: Talika M. Johnson Louie F. Lacasella Director of Finance Management Analyst Reviewed and Approved: Troy L. Butzlaff, ICMA-CM City Manager Attachments: 1. Resolution No. 2017-C40 Establishing Community Facilities District 2017-1 2. Resolution No. 2017-C41 Calling a Special Election 3. Resolution No. 2017-C42 Declaring the Results of the Consolidated Special Election 4. Ordinance No. 2017-04 Levying Special Taxes within the Community Facilities District RESOLUTION NO. 2017-C40 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA ESTABLISHING CITY OF AZUSA COMMUNITY FACILITIES DISTRICT NO. 2017-1 (PUBLIC SAFETY SERVICES), COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AND THE BOUNDARIES THEREOF WHEREAS, the City Council of the City of Azusa (the "City Council") has heretofore adopted Resolution No. 2017-C31, stating that a community facilities district to be known as "City of Azusa Community Facilities District No. 2017-1 (Public Safety Services), County of Los Angeles, 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, a portion of the land within the proposed community facilities district is currently owned by the City of Azusa (the “City”), a public agency, and the City has stated pursuant to Section 53317(f) of the Act and to a separate certificate attached hereto as Exhibit B, that a portion of the land is intended to be transferred to private ownership and will be subject to the special taxes on the same basis as private property in the proposed community facilities district, and the City has affirmatively waived any defense that it may have, as a result of public ownership, to any action to foreclose on such property in the event of non-payment of the special tax; and WHEREAS, notice was published and mailed to the owners 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, 2017, 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 on June 19, 2017 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 o f 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; - 2 - NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF AZUSA 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, 2017, 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 May 16, 2017, at page 52 of Book 194 of Maps of Assessment and Community Facilities Districts, and as Document No. 2017-0539001, in the official records of the County of Los Angeles, (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 Azusa Community Facilities District No. 2017-1 (Public Safety Services), County of Los Angeles, 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 Azusa Community Facilities District No. 2017-1 (Public Safety Services), County of Los Angeles, State of California, is hereby established. The boundaries of the Community Facilities District are described and shown on the map entitled "Proposed Boundary Map of City of Azusa Community Facilities District No. 2017-1 (Public Safety Services), City of Azusa, County of Los Angeles, State of California" which is on file with the City Clerk and attached hereto as Exhibit “C”, and said boundaries are hereby established. Section 3. Types of Services; Incidental Expenses. The Community Facilities District shall provide and finance: Public Safety Services: (i) fire protection and suppression services and (ii) police protection services. The Community Facilities District shall also finance costs associated with the determination of the amount of and the levy and collection of special taxes which are levied to - 3 - provide such services and costs otherwise incurred in order to carry out the authorized purposes of the Community Facilities District. 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 rate and method of apportionment of said special taxes shall be as set forth in Exhibit "A" 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 rate and method 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 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 th e 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 collection of the special tax ceases. The [City Manager] of the City of Azusa, 213 East Foothill Boulevard, Azusa, California is designated as the officer 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 53340.2 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 (which are not subject to a leasehold interest and which are not expected to be transferred for private ownership) 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 $200,000 (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 - 4 - 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. (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 resolution calling the election, and shall also mail or deliver to all such qualified electors a ballot pamphlet and instructions to voter, including a sample ballot identical in form to the official ballot but identified as a sample ballot, 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 the Resolution of Formation; 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 - 5 - thereon in the voting square opposite each such proposition, and further certifying as to t he 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 6:30 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 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. Section 8. Signature Authority. The City Manager is authorized to execute and deliver the Waiver of Certain Election Procedures and vote the ballot on behalf of the C ity for the Community Facilities District formation and election. PASSED AND ADOPTED by the City Council of the City of Azusa at a regular meeting held on the 19th day of June, 2017. _____________________________ Joseph Romero Rocha Mayor ATTEST: ______________________________ Jeffrey Lawrence Cornejo, Jr. City Clerk - 6 - STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA ) I HEREBY CERTIFY that the foregoing Resolution No. 2017-C40 was duly adopted by the City Council of Azusa at a regular meeting thereof, held on the 19th day of June, 2017, by the following vote of Council: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ______________________________ Jeffrey Lawrence Cornejo, Jr. City Clerk APPROVED AS TO FORM: __________________________________ Best Best & Krieger, LLP City Attorney A-1 EXHIBIT "A" RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR CITY OF AZUSA COMMUNITY FACILITIES DISTRICT NO. 2017-1 (PUBLIC SAFETY SERVICES) A Special Tax as hereinafter defined applicable to each Assessor’s Parcel in Community Facilities District No. 2017-1 (“CFD No. 2017-1” or “CFD”) shall be levied and collected each Fiscal Year commencing in Fiscal Year 2017-18, in an amount determined by the City Council acting in its capacity as the legislative body of CFD No. 2017-1, through the application of the appropriate Special Tax rate, as described below. All Developed Property in CFD No. 2017-1 shall be taxed for the purposes, to the extent, and in the manner herein provided, including property subsequently annexed to the CFD unless a separate Rate and Method of Apportionment of Special Tax is adopted for the annexation area. A. DEFINITIONS The terms hereinafter set forth have the following meanings: “Acre or Acreage” means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded County parcel map. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311), Division 2, of Title 5 of the Government Code of the State of California. “Administrative Expenses” means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2017-1: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the County or otherwise); the costs to the City, the CFD or any designee thereof of complying with City or CFD disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, the CFD or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or the CFD for any other administrative purposes of CFD No. 2017-1, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. “Administrator” means the person or firm designated by the City to administer the Special Taxes according to this Rate and Method of Apportionment of Special Tax. “Assessor’s Parcel” or “Parcel” means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel number. A-2 “Assessor’s Parcel Map” means an official map of the County Assessor designating parcels by Assessor’s Parcel number. “Authorized Services” means the public services authorized to be funded by the CFD as set forth in the documents adopted by the City Council when the CFD was formed. “CFD Administrator” means an official of the City, or designee thereof, responsible for calculating the Special Tax Requirement and providing for the levy and collection of the Special Taxes. “CFD No. 2017-1” or “CFD” means the City of Azusa Community Facilities Distric t No. 2017- 1. “City” means the City of Azusa. “City Council” means the City Council of the City of Azusa, acting as the legislative body of CFD No. 2017-1. “Consumer Price Index” means the Consumer Price Index published by the U.S. Bureau of Labor Statistics for “All Urban Consumers” in the Los Angeles - 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 CFD Administrator that is reasonably comparable to the Consumer Price Index for the City of Los Angeles. “County” means the County of Los Angeles. “Developed Property” means, in any Fiscal Year, all Parcels in the C FD for which a building permit has been issued for new residential or non -residential construction prior to May 1st of the preceding Fiscal Year. “Dwelling Unit” or “D/U” means an individual single family detached unit or an individual residential unit within a duplex, triplex, fourplex, townhome, condominium, cluster-type or apartment structure and designated under Land Use Categories 1 through 4 of Table 1, or assigned as such by the City. “Fiscal Year” means the period starting on July 1 and ending on the following June 30. “Land Use Category” means a category of Residential Property as designated in Table 1 of this Rate and Method of Apportionment of Special Tax. “Maximum Special Tax” means the maximum Special Tax determined in accordance with Section C below that can be levied on Developed Property in any Fiscal Year. “MFA or Multi-Family Apartment Property” means any Assessor’s Parcel of Residential Property that consists of a building or buildings comprised of attached Dwelling Units available for rental, but not purchase, by the general public and under common management, and designated as such by Table 1 of this Rate and Method of Apportionment of Special Tax. A-3 “Non-Residential Property” means, in any Fiscal Year, all Parcels of Developed Property in C FD No. 2017-1 for which a building permit was issued prior to May 1 of the preceding Fiscal Year for construction of a non-residential structure that is to be used for a commercial or industrial business operation, as determined by the City. Notwithstanding the foregoing, if building permit(s) have been issued for a structure that will include both Dwelling Units and commercial operations, the Dwelling Units within the building will be categorized as Residential Property, and the Special Tax shall be calculated separately for the Dwelling Units on the Parcel. The proportionate share of the Acreage of the Parcel to be used to calculate the Special Tax assigned to the Non-Residential Property on the Parcel shall be determined by the CFD Administrator. “Project Area A” means all Taxable Property represented by Assessor’s Parcel Numbers 8608 - 027-905, 8608-027-906, 8608-027-907, 8608-027-908 and depicted as Lots 1, 2, 3 and 4 on the CFD Boundary Map and generally located at the southwest corner of Dalton Avenue and 9th Street in the City of Azusa. “Proportionately” means that the ratio of the actual Special Tax levied to the Maximum Special Tax is equal for all Parcels of Developed Property. “Public Agency” means the federal government, State of California, City, C ounty, or other public agency. “Residential Property” means, in any Fiscal Year, all Parcels of Developed Property in CFD No. 2017-1 for which a building permit was issued prior to May 1 of the preceding Fiscal Year for construction of a structure consisting of one or more Dwelling Units. “SFA” or “Single Family Attached Residential Property” means all Assessor’s Parcels of Residential Property for which a building permit has been issued for purposes of constructing an attached single-family residential dwelling, excluding Townhomes, and designated as such by Table 1 of this Rate and Method of Apportionment of Special Tax. “SFD” or “Single Family Detached Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit has been issued for purposes of constructing a detached single-family residential dwelling, and designated as such by Table 1 of this Rate and Method of Apportionment of Special Tax. “Special Tax Requirement” means the amount of revenue needed in any Fiscal Year to pay for the following: (i) Authorized Services, (ii) Administrative Expenses, and (iii) amounts needed to cure any delinquencies in the payment of Special Taxes which have occurred or (based on delinquency rates in prior years) may be expected to occur in the Fiscal Year in which the tax will be collected as determined by the CFD Administrator. “Special Tax” means any tax levied within the CFD to pay for Authorized Services. “Taxable Property” means all Assessor’s Parcels within the boundaries of CFD No. 2017-1 which are not exempt from the Special Tax pursuant to law or Section E below. “Townhomes” means each residential Dwelling Unit of Residential Property located within Project Area A. A-4 “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, all Taxable Property within CFD No. 2017-1 shall be classified by the CFD Administrator as Developed Property or Undeveloped Property. The CFD Administrator shall further classify all Assessor’s Parcels of Developed Property as either Residential Property or Non-Residential Property and shall then assign all Assessor’s Parcels of Residential Property to one of the Land Use Categories set forth in Table 1 of Section “C” below based on the type if structure or structures located on the Assessor’s Parcel. The CFD Administrator shall also determine the number of Dwelling Units built or to be built on each Parcel of Residential Property by referencing the building permit, condominium plan, apartment plan, site plan or other development plan for the property. In any Fiscal Year, if it is determined that (i) a parcel map for a portion of property in the CFD was recorded after January 1 of the prior Fiscal Year (or any other date after which the Assessor will not incorporate the newly-created parcels into the then current tax roll), (ii) because of the date the parcel map was recorded, the Assessor does not yet recognize the new parcels created by the parcel map, and (iii) one or more of the newly-created parcels meets the definition of Developed Property, the Administrator shall calculate the Special Tax for the property affected by recordation of the parcel map by determining the Special Tax that applies separately to each parcel of Developed Property, then applying the sum of the individual Special Taxes to the original Parcel that was subdivided by recordation of the parcel map. C. MAXIMUM SPECIAL TAX RATE The following Maximum Special Tax rates shall apply to all Parcels of Developed Property within CFD No. 2017-1 in accordance with the amounts, as annually adjusted, for each applicable Land Use Category as set forth in Table 1: TABLE 1 Land Use Category Maximum Special Tax (Fiscal Year 2017-18) 1 – Single Family Detached Residential Property (SFD) $353 per D/U 2 – Single Family Attached Residential Property (SFA) $318 per D/U 3 – Multi Family Apartment Property (MFA) $283 per D/U 4 – Townhomes located within Project Area “A” $225 per D/U 5 – Non-Residential Property N/A On each July 1, commencing on July 1, 2018, the Maximum Special Tax applicable to Land Use Categories 1-3 shall be increased by the positive annual percentage change in the Consumer Price Index, with a maximum annual increase of five percent (5%) and a minimum annual increase of two percent (2%). On each July 1, commencing July 1, 2018, the Maximum Special A-5 Tax applicable to Land Use Category 4 shall be increased by the lesser of (i) the positive annual percentage change in the Consumer Price Index, or (ii) five percent (5%). D. METHOD OF LEVY AND COLLECTION OF SPECIAL TAX Each Fiscal Year, the Special Tax shall be levied Proportionately on each Parcel of Developed Property in the CFD up to 100% of the Maximum Special Tax determined pursuant to Sectio n “C” above until the total amount levied is equal to the Special Tax Requirement for the Fiscal Year. The Special Tax for CFD No. 2017-1 shall be collected at the same time and in the same manner as ordinary ad valorem property taxes provided, however, that the City may (under the authority of Government Code Section 53340) collect Special Taxes at a different time or in a different manner if necessary to meet CFD No. 2017-1 financial obligations. E. EXEMPTIONS AND LIMITATIONS Notwithstanding any other provision of this Rate and Method of Apportionment of Special Tax, no Special Tax shall be levied on land that has been conveyed to a Public Agency, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act and except as such property may be used for residential or commercial purposes. No Special Tax shall be levied on Non-Residential Property. However, should an Assessor’s Parcel no longer be classified as Non-Residential Property, its tax-exempt status will be revoked. F. INTERPRETATIONS OF SPECIAL TAX FORMULA The City reserves the right to make minor administrative and technical changes to this document that do not materially affect the rate and method of apportioning Special Taxes. In addition, the interpretation and application of any section of this document shall be left to the City’s discretion. Interpretations may be made by the City by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment of Special Tax. B-1 EXHIBIT B CITY OF AZUSA COMMUNITY FACILITIES DISTRICT NO. 2017-1 (PUBLIC SAFETY SERVICES) REPRESENTATION AS TO OWNERSHIP OF PROPERTY AND INTENDED USE BY THE CITY OF AZUSA The undersigned states and certifies as follows: 1. That he is the City Manager of the City of Azusa and as such is authorized to sign this certificate. 2. That the City of Azusa is owner of a portion of the property area shown on the boundary map, as areas B, C and D for the proposed community facilities district entitled “Proposed Boundaries of City of Azusa Communit y Facilities District No. 2017-1 (Public Safety Services), County of Los Angeles, State of California,” and approved by Resolution No. 2017 - C31 of the City of Azusa adopted on May 15, 2017 (the “Property”). 3. That the City of Azusa is a “landowner” within the provisions of Section 53317(f), that a portion of the Property is intended to be transferred to private ownership for residential development and, as such, the Property intended to be transferred to private ownership will be subject to the special taxes on the same basis as private property within the proposed community facilities district. 4. The City of Azusa hereby affirmatively waives any defense based on the fact of public ownership to any action to foreclose on such portion of the Property intended to be transferred to private ownership in the event of non-payment of the special tax. CITY OF AZUSA By: ____________________________________ City Manager EXHIBIT C PROPOSED BOUNDARY MAP 45635.01433\29765205.1 RESOLUTION NO. 2017-C41 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA CALLING A SPECIAL ELECTION AND SUBMITTING TO THE VOTERS OF CITY OF AZUSA COMMUNITY FACILITIES DISTRICT NO. 2017-1 (PUBLIC SAFETY SERVICES) A PROPOSITION WITH RESPECT TO THE ANNUAL LEVY OF SPECIAL TAXES WITHIN SAID COMMUNITY FACILITIES DISTRICT TO PAY THE COSTS OF CERTAIN SERVICES TO BE PROVIDED BY THE COMMUNITY FACILITIES DISTRICT AND A PROPOSITION WITH RESPECT TO ESTABLISHING AN APPROPRIATIONS LIMIT FOR SAID COMMUNITY FACILITIES DISTRICT WHEREAS, pursuant to Section 53325.1 of the California Government Code, the City Council (the "City Council") of the City of Azusa ("the City") has adopted a resolution establishing City of Azusa Community Facilities District No. 2017 -1 (Public Safety Services), County of Los Angeles, State of California (the "Community Facilities District") and the boundaries thereof; and WHEREAS, pursuant to Section 53326 of said Code, it is necessary that the City Council submit to the voters of the Community Facilities District the annual levy of special taxes on the property within the Community Facilities District to pay the costs of providing the services described in Resolution No. 2017-C31, the resolution of intention with respect to the formation of the Community Facilities District ("Resolution No. 2017-C31"); and WHEREAS, pursuant to Section 53325.7 of said Code, the City Council may also submit to the voters of the Community Facilities District a proposition with respect to establishing an appropriations limit for the Community Facilities District; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF AZUSA AS FOLLOWS: Section 1. Findings. The City Council finds that: (i) the foregoing recitals are correct; (ii) 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 on June 19, 2017; (iii) pursuant to Section 53326 of the California Government Code, as a result of the findings set forth in clause (ii) above, the vote in the special election called by this resolution shall 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 which would be subject to the proposed special taxes if they were levied at the time of the election; (iv) the City of Azusa, a municipal corporation, and Olson Urban II – Azusa 1, LLC, a Delaware limited liability company, the owners of all of the land in the Community Facilities District, have by written consent (a) waived the time limits set forth in said Section 53326 for holding the election called by this resolution, (b) consented to the holding of said election on June 19, 2017, (c) waived notice and mailed notice of the time and date of said - 2 - 45635.01433\29765205.1 election, (d) waived an impartial analysis by the City Attorney of the ballot propositions pursuant to Section 9280 of the California Elections Code and arguments and rebuttals pursuant to Sections 9281 to 9287, inclusive, and 9295 of said Code; and (v) the City Clerk of the City has consented to the holding of said election on June 19, 2017. Section 2. Call of Election. The City Council hereby calls and schedules a special election for June 19, 2017 on the proposition with respect to the annual levy of special taxes within the Community Facilities District for paying the cost of the services to be provided within and for the benefit of the Community Facilities District and on the proposition with respect to establishing an appropriations limit for the Community Facilities District. Section 3. Propositions. The propositions to be submitted to the voters of the Community Facilities District at such special election shall be as follows: First Proposition Shall special taxes be levied annually on taxable property within City of Azusa Community Facilities District No. 2017-1 (Public Safety Services) to pay the annual costs of (i) fire protection and suppression services and police protection services and (ii) to pay costs associated with the determination of the amount of and the levy and collection of the special taxes, at the special tax rates and pursuant to the method of apportioning such special taxes set forth in Exhibit "A" to the Resolution of Formation adopted by the City Council of the City of Azusa on June 19, 2017? Second Proposition Shall an appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, be established for City of Azusa Community Facilities District No. 2017-1 (Public Safety Services), County of Los Angeles, State of California, in the amount of $200,000, and which shall increase by 2% annually? Section 4. Conduct of Election. Except as otherwise provided in Section 5 hereof, said election shall be conducted by the City Clerk of the City 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. Section 5. Election Procedures. The procedures to be followed in conducting the special election on (a) the proposition with respect to the levy of special taxes on the land within the Community Facilities District to (i) pay the annual costs of fire protection services and police protection services, within and in the area of the Community Facilities District, and (ii) to pay costs associated with the determination of the amount and levy and collection of the special taxes, and (b) the proposition with respect to establishing an appropriations limit for the Community Facilities District in the amount of $200,000 (the "Special Election") shall be as follows: (a) Pursuant to said Section 53326 of the California Government Code, 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. - 3 - 45635.01433\29765205.1 (b) 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 the form attached hereto as Exhibit “A”, 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 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. 2017-C31; provided, however, that such statement, analysis and arguments may be waived with the unanimous consent of all the landowners. (c) 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. (d) 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. (e) 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 6:30 p.m. on June 19, 2017. (f) Upon receipt of the return identification envelopes which are returned prior to the voting deadline on the date of the election, the City Clerk shall canvass the votes cast in the 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. - 4 - 45635.01433\29765205.1 PASSED AND ADOPTED by the City Council of the City of Azusa at a regular meeting held on the 19th day of June, 2017. _____________________________ Joseph Romero Rocha Mayor ATTEST: ______________________________ Jeffrey Lawrence Cornejo, Jr. City Clerk - 5 - 45635.01433\29765205.1 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA ) I HEREBY CERTIFY that the foregoing Resolution No. 2017-C41 was duly adopted by the City Council of Azusa at a regular meeting thereof, held on the 19th day of June, 2017, by the following vote of Council: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ______________________________ Jeffrey Lawrence Cornejo, Jr. City Clerk APPROVED AS TO FORM: __________________________________ Best Best & Krieger, LLP City Attorney 45635.01433\29765205.1 A-1 EXHIBIT "A" OFFICIAL BALLOT SPECIAL ELECTION FOR CITY OF AZUSA COMMUNITY FACILITIES DISTRICT NO. 2017-1 (PUBLIC SAFETY SERVICES), COUNTY OF LOS ANGELES, STATE OF CALIFORNIA June 19, 2017 To vote, mark a cross (+) in the voting square after the word "YES" or after the word "NO". All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void. If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of Azusa and obtain another. PROPOSITION A: Shall special taxes be levied annually on taxable property within City of Azusa Community Facilities District No. 2017-1 (Public Safety Services) to pay the annual costs of (i) fire protection and suppression services and police protection services and (ii) to pay costs associated with the determination of the amount of and the levy and collection of the special taxes, at the special tax rates and pursuant to the method of apportioning such special taxes set forth in Exhibit "A" to the Resolution of Formation adopted by the City Council of the City of Azusa on June 19, 2017? PROPOSITION B: Shall an appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, be established for City of Azusa Community Facilities District No. 2017-1 (Public Safety Services), County of Los Angeles, State of California, in the amount of $200,000, and which shall increase by 2% annually? YE S NO YES NO YES NO 45635.01433\29766723.1 RESOLUTION NO. 2017-C42 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA DECLARING THE RESULTS OF THE SPECIAL ELECTION FOR CITY OF AZUSA COMMUNITY FACILITIES DISTRICT NO. 2017-1 (PUBLIC SAFETY SERVICES), COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ON THE PROPOSITIONS WITH RESPECT TO (I) THE ANNUAL LEVY OF SPECIAL TAXES TO PAY THE COSTS OF CERTAIN SERVICES TO BE PROVIDED BY THE COMMUNITY FACILITIES DISTRICT AND (II) ESTABLISHING AN APPROPRIATIONS LIMIT WHEREAS, on June 19, 2017, the City Council (the "City Council") of the City of Azusa (the "City") adopted a resolution calling a special election on the propositions with respect to the annual levy of special taxes on taxable property within City of Azusa Community Facilities District No. 2017-1 (Public Safety Services) (the "Community Facilities District") to pay the costs of certain services to be provided by the Community Facilities District and establishing an appropriations limit for the Community Facilities District (the "Election Resolution"); and WHEREAS, the City Council has received a statement from the City Clerk, who pursuant to the Election Resolution was authorized to conduct the special election and act as the election official therefor, with respect to the canvass of the ballots returned in and the results of the special election, certifying that more than two-thirds of the votes cast upon the propositions submitted to the voters in the special election were cast in favor of all such propositions; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF AZUSA AS FOLLOWS: Section 1. Findings. The City Council finds that: (i) there were less than 12 persons registered to vote within the boundaries of the Community Facilities District at the time of the close of the protest hearing on June 19, 2017, and pursuant to Section 53326 of the California Government Code ("Section 53326") the votes in the special election were, therefore, to be by the landowners owning land within the Community Facilities District, with each landowner having one vote for each acre or portion of an acre of land that he or she owned within the Community Facilities District which would have been subject to the special tax if levied at the time of the special election; (ii) pursuant to Section 53326 and the Election Resolution, the City Clerk delivered ballots for the special election to the City of Azusa, a municipal corporation, and Olson Urban II – Azusa 1, LLC, a Delaware limited liability company, the owners of all of the land within the Community Facilities District (the "Property Owners"); (iii) the Property Owners waived the time limits for holding the special election and the election dates specified in Section 53326, and consented to the calling and holding of the special election on June 19, 2017; (iv) the special election has been properly conducted in accordance with all statutory requirements and the provisions of the Election Resolution; (v) pursuant to Section 53326, the Property Owners, which owned approximately 6.1442 acres, were entitled to a total of 7 votes; (vi) the ballots were returned by the Property Owners to the City Clerk prior to 6:30 p.m. on June 19, 2017; (vii) the ballots returned to the City Clerk by the Property Owners voted all votes to which they were - 2 - 45635.01433\29766723.1 entitled in favor of all propositions set forth therein; (viii) more than two-thirds of the votes cast in the special election on each such proposition were cast in favor thereof, and pursuant to Section 53328 of the California Government Code, all such propositions carried; (ix) the City Council, as the legislative body of the Community Facilities District, is therefore authorized to take the necessary action to annually levy special taxes on taxable property within the Community Facilities District in amounts sufficient to pay the costs of services to be provided by the Community Facilities District; and (x) an appropriations limit for the Community Facilities District has been established in the amount of $200,000, which on: each July 1, commencing on July 1, 2018, the Maximum Special Tax applicable to Land Use Categories 1-3 shall be increased by the positive annual percentage change in the Consumer Price Index, with a maximum annual increase of five percent (5%) and a minimum annual increase of two percent (2%); and each July 1, commencing July 1, 2018, the Maximum Special Tax applicable to Land Use Category 4 shall be increased by the lesser of (i) the positive annual percentage change in the Consumer Price Index, or (ii) five percent (5%). Section 2. Declaration of Results. All votes voted in the special election on the propositions with respect to the annual 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 the establishment of an appropriations limit in the amount of $200,000, which shall increase by 2% annually, for the Community Facilities District were voted in favor thereof, and such propositions carried. Section 3. Effect of Election. The effect of the results of the special election, as specified in Section 2 hereof, is that the City Council, as the legislative body of the Community Facilities District, is authorized to annually levy special taxes on taxable property within the Community Facilities District in an amount sufficient to pay the costs of the services to be provided by the Community Facilities District at the special tax rates and pursuant to the methodology for determining and apportioning such special taxes which are set forth in Exhibit "A" to the Resolution of Formation adopted by the City Council on June 19, 2017, and an appropriations limit has been established for the Community Facilities District in the amount of $200,000. PASSED AND ADOPTED by the City Council of the City of Azusa at a regular meeting held on the 19th day of June, 2017. _____________________________ Joseph Romero Rocha Mayor ATTEST: ______________________________ Jeffrey Lawrence Cornejo, Jr. City Clerk - 3 - 45635.01433\29766723.1 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA ) I HEREBY CERTIFY that the foregoing Resolution No. 2017-C42 was duly adopted by the City Council of Azusa at a regular meeting thereof, held on the 19th day of June, 2017, by the following vote of Council: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ______________________________ Jeffrey Lawrence Cornejo, Jr. City Clerk APPROVED AS TO FORM: __________________________________ Best Best & Krieger, LLP City Attorney 45635.01433\29778352.1 -1- ORDINANCE NO. 2017-04 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, LEVYING SPECIAL TAXES WITHIN CITY OF AZUSA COMMUNITY FACILITIES DISTRICT NO. 2017-1 (PUBLIC SAFETY SERVICES), COUNTY OF LOS ANGELES, STATE OF CALIFORNIA WHEREAS, on June 19, 2017, the City Council of the City of Azusa (the “City Council”) adopted a resolution entitled “Resolution of the City Council of the City of Azusa Establishing City of Azusa Community Facilities District No. 2017-1 (Public Safety Services), County of Los Angeles, State of California, and the Boundaries Thereof (the “Resolution of Formation”) which established City of Azusa Community Facilities District No. 2017-1 (Public Safety Services) (the “District”) pursuant to Chapter 2.5 of Part 1 of Divis ion 2 of Title 5, commencing with Section 53311, of the California Government Code (the “Act”), for the purpose of providing fire protection and suppression services and police protection services; and WHEREAS, notice was published as required by the Act relative to the intention of the City Council to form the District and to provide for the funding of the purposes thereof; and WHEREAS, the City Council has held a noticed public hearing as required by the Act relative to the determination to proceed with the formation of the District and the rate and method of apportionment of the special tax to be levied within the District to fund the fire protection and suppression services and police protection services; and WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the formation of the District and the levy of said special taxes were heard, substantial evidence was presented and considered by the City Council and a full and fair hearing was held; and WHEREAS, subsequent to said hearing the City Council adopted a resolution entitled “Resolution of the City Council of the City of Azusa Calling a Special Election and Submitting to the Voters of City of Azusa Community Facilities District No. 2017-1 (Public Safety Services) a Proposition with Respect to the Annual Levy of Special Taxes Within Said Community Facilities District to Pay the Costs of Certain Services to be Provided by the Community Facilities District and a Proposition with Respect to Establishing an Appropriations Lim it for Said Community Facilities District” which resolution called an election within the District on the proposition of levying a special tax and establishing an appropriations limit within the District, respectively; and WHEREAS, an election was held within the District in which eligible landowner electors approved said propositions by more than the two-thirds vote required by the Act. THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, DOES ORDAIN AS FOLLOWS: SECTION 1. Levy of Special Taxes. By the passage of this Ordinance, the City Council hereby authorizes and levies special taxes within the District pursuant to the California Government Code Sections 53328 and 53340, at the rates and in accordance with the method of 45635.01433\29778352.1 -2- apportionment set forth in Exhibit A to the Resolution of Formation (the “Rate and Method of Apportionment’). The special taxes are hereby levied commencing in fiscal year 2018-19 and in each fiscal year thereafter. SECTION 2. Determination of Future Levies. The City Manager or his or her designee is hereby authorized and directed each fiscal year to determine the special tax rate and amount to be levied for the next ensuing fiscal year for each parcel of real property within the District, in the manner and as provided in the Rate and Method of Apportionment. SECTION 3. Exempt Properties. Properties or entities of the State, federal or local governments shall be exempt from any levy of the special taxes, to the extent set forth in the Rate and Method of Apportionment. In no event shall the special taxes be levied on any parcel within the District in excess of the maximum tax specified in the Rate and Method of Apportionment. SECTION 4. Use of Special Taxes. All of the collections of the special tax shall be used as provided for in the Act, the Rate and Method of Apportionment, and in the Resolution of Formation including, but limited to, the payment of fire protection and suppression services and police protection services, the payment of the costs of the City in administering the district and the costs of collecting and administering the special tax. SECTION 5. Collection of Special Tax. The special taxes shall be collected from time to time as necessary to meet the financial obligations of the District on the secured real property tax roll in the same manner as ordinary ad valorem taxes are collected. The City Manager or his or her designee, pursuant to the Rate & Method of Apportionment, is hereby authorized and directed to provide all necessary information to the auditor/tax collector of the County of Los Angeles and to otherwise take all actions necessary in order to effect proper billing and collection of the special tax, so that the special tax shall be levied and collected in sufficient amount and at the times necessary to satisfy the financial obligations of the District in each fiscal year until the necessary services of the District are funded, and provision has been made for payment of all of the administrative costs of the District. Notwithstanding the foregoing and notwithstanding the Rate & Method of Apportionment, the City Manager or his or her designee may collect one or more installments of the special taxes by means of direct billing by the City of the property owners within the District, if, in the judgment of the City Manager, or his or her designee, such means of collection will reduce the administrative burden on the City or is otherwise appropriate under the circumstances. In such event the special taxes shall become delinquent if not paid when due as set forth in any such respective billing to the property owners. The special taxes shall have the same lien priority, and be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem taxes. In addition, the provisions of Section 53356.1 of the Act shall apply to delinquent special tax payments. SECTION 6. Validity of Ordinance. If for any reason any portion of this ordinance is found to be invalid, or if the special tax is found inapplicable to any particular parcel within the 45635.01433\29778352.1 -3- District by a Court of competent jurisdiction, the balance of this ordinance and the application of the special tax to the remaining parcels within the District shall not be affected. SECTION 7. Publication of Ordinance. This Ordinance shall be published and posted in the manner specified in the California Government Code, and shall become effective immediately upon its adoption. This ordinance shall be subject to referendum pursuant to the laws of the State of California. PASSED, APPROVED AND ADOPTED this 17th day of July, 2017. _____________________________ Joseph Romero Rocha Mayor ATTEST: ______________________________ Jeffrey Lawrence Cornejo, Jr. City Clerk 45635.01433\29778352.1 -4- STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA ) I HEREBY CERTIFY that the foregoing Ordinance No. 2017-04 was duly introduced and placed for its first reading at a regular meeting of the City Council on the 19th day of June, 2017, and that thereafter, said Ordinance was duly adopted and passed at a regular meeting of the City Council on the 17th day of July, 2017, by the following vote of the Council: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ______________________________ Jeffrey Lawrence Cornejo, Jr. City Clerk APPROVED AS TO FORM: __________________________________ Best Best & Krieger, LLP City Attorney 45635.01433\29778352.1 A-1 EXHIBIT “A” PARCELS OF TAXABLE PROPERTY ASSESSOR’S PARCEL NOS. 8608-027-905 8608-027-906 8608-027-907 8608-027-908 8611-004-902 8611-004-903 8611-004-904 8611-004-905 8611-004-906 8611-004-907 8611-004-912 8611-004-913 8611-004-914 8611-003-921 8608-025-902 8608-025-907 8608-025-908 8608-025-909 8608-025-910