Newport Beach Municipal Code Art. IV Extension of Authorized Facilities and Services and Changes in Special Taxes

Upon the establishment of a special improvement district, only the public facilities and services as described in the resolution of formation may be financed by the district under the authority of this Code, except as provided in this article.

(Ord. 94-40 § 2 (part), 1994)

Under no circumstances shall any buyer or prospective buyer of any completed structure for which a certificate of occupancy for private residential use has been issued which is located within any district formed pursuant to this Code be asked, required, or otherwise induced to waive any right to petition or take any other action authorized pursuant to this article. No contract, agreement or covenant shall be binding with respect to such a waiver.

(Ord. 94-40 § 2 (part), 1994)

Upon approval of a special tax pursuant to Article III of this Code, the special tax may be levied only at the rate and may be apportioned only in the manner specified in the resolution of formation, except as provided in this article, and except that the City Council may levy the special tax at a rate lower than that specified in the resolution. In addition, the special tax may be levied only so long as it is needed to pay the principal and interest on debt incurred in order to construct facilities under authority of this Code, or so long as it is needed to pay the costs and incidental expenses of services or of the construction of facilities authorized by this Code.

When the City Council determines that the special tax shall cease to be levied, the City Council shall direct the clerk to record a notice of cessation of special tax which shall state that the obligation to pay the special tax has ceased and that the lien imposed by the notice of special tax lien recorded in Book _____, and Page _____ of the records of the County Recorder of Orange County, State of California, is extinguished. The notice of cessation of special tax shall additionally identify the book and page of the Book of Maps of Assessment and Community Facilities Districts wherein the map of the boundaries of the district is recorded.

(Ord. 94-40 § 2 (part), 1994)

Except as otherwise provided in this article, the City Council may, at any time, after conducting a public hearing, eliminate one or more of the types of facilities and services specified in the resolution of intention to establish the district but may not finance any types of facilities and services that were not specified in the resolution of intention.

(Ord. 94-40 § 2 (part), 1994)

A. If the City Council determines that the public convenience and necessity require any change in the types of authorized public facilities or services which should be financed by an established special improvement district, that the rate or method of apportionment of a special tax should be changed, or that a new special tax should be proposed, the City Council may adopt a resolution of consideration to alter the types of public facilities or services to be financed by the district, to levy a new special tax or special taxes, or, except as provided in subsection (B) of this section, to alter the rate or method of apportionment of the special tax. Those proceedings may be commenced at any time.

B. The City Council shall not adopt a resolution of consideration to reduce the rate of any special tax or terminate the levy of any special tax if the proceeds of that tax are being utilized to retire any debt incurred pursuant to this Code unless the City Council determines that the reduction or termination of that tax would not interfere with the timely retirement of that debt.

C. The resolution of consideration adopted pursuant to subsection (A) of this section shall contain all of the information required by subsections (A) to (E), inclusive, of Section 3.32.480.

(Ord. 94-40 § 2 (part), 1994)

A. If a petition signed by fifty (50) percent or more of the registered voters residing in the district, or by the owners of fifty (50) percent or more of the territory within the district, is filed with the City Council requesting that proceedings be commenced to change the types of public facilities or services financed by the district or that the rate or method of apportionment of an existing special tax be changed, or that a new special tax be levied, the City Council shall within forty (40) days thereafter adopt a resolution of consideration in the form specified in Section 3.32.480 to make those changes within the special improvement district except that an existing special tax being used to pay off any debt incurred in order to build or acquire capital facilities under this Code shall not be reduced or terminated if doing so would interfere with the timely retirement of that debt.

B. Any petition filed by landowners shall be accompanied by the payment of the fee which the City Council determines. That fee may be imposed in an amount sufficient to compensate the City Council for all costs incurred in conducting proceedings to change the district pursuant to this article.

(Ord. 94-40 § 2 (part), 1994)

The petition shall request the City Council to commence proceedings to make specified changes to a named special improvement district. The petition may consist of any number of separate instruments each of which shall comply with all the requirements of a petition except as to the number of signatures.

(Ord. 94-40 § 2 (part), 1994)

The resolution of consideration to alter the types of public facilities and services financed by an established special improvement district, or to levy a new special tax or special taxes, or to alter the rate or method of apportionment of an existing special tax, shall do all of the following:

A. State the name of the area.

B. Generally describe the territory included in the area.

C. Specify the changes in public facilities and services which it is proposed that the district finance.

D. Specify any new special taxes which would be levied to pay for new or existing facilities and services and any proposed alteration to the rate or method of apportionment of an existing special tax.

E. Fix a time and place for a hearing upon the resolution which shall not be less than thirty (30) or more than sixty (60) days after the adoption of the resolution of consideration.

(Ord. 94-40 § 2 (part), 1994)

The Clerk shall give notice of the hearing in the same manner and within the same time as provided for the giving of notice of a hearing on a resolution of intention to establish a special improvement district.

The notice shall do all of the following:

A. Contain the text or a summary of the resolution.

B. State the time and place for hearing.

C. State that at the hearing the testimony of all interested persons or taxpayers for or against the proposed changes in public facilities and services and the levying of additional special taxes or of changing existing special taxes will be heard. The notice shall also describe, in summary, the effect of protests made by registered voters or landowners against the proposed changes in facilities or services and the levying of additional taxes or changes in existing taxes.

D. Describe the proposed voting procedure.

(Ord. 94-40 § 2 (part), 1994)

At the hearing, protests against the proposals described in the resolution may be made orally, or in writing by any interested persons. Any protests pertaining to the regularity or sufficiency of the proceedings shall be in writing and shall clearly set forth the irregularities or defects to which objection is made. All written protests shall be filed with the Clerk on or before the time fixed for the hearing. The City Council may waive any irregularities in the form or content of any written protest and at the hearing may correct minor defects in the proceedings. Written protests may be withdrawn in writing at any time before the conclusion of the hearing.

(Ord. 94-40 § 2 (part), 1994)

If fifty (50) percent or more of the registered voters, or six registered voters, whichever is more, residing within the district, or the owners of one-half or more of the area of the land in the territory included in the district and not exempt from the special tax file written protests against changing the public facilities or services financed by the district, those changes in the facilities or services shall be eliminated from the resolution ordering changes in the types of public facilities or services to be financed and the changes shall not be included in a resolution for a period of one year from the date of the decision of the legislative body on the hearing.

If fifty (50) percent or more of the registered voters, or six registered voters, whichever is more, residing within the district, or the owners of one-half or more of the area of the land in the territory included in the district and not exempt from the special tax file written protests against the levying of any additional special taxes within the district, or against a proposed alteration to an existing special tax within the district, those changes shall be eliminated from the resolution and the changes shall not be included in a resolution for a period of one year from the date of the decision of the legislative body on the hearing.

(Ord. 94-40 § 2 (part), 1994)

A. The hearing may be continued from time to time, but shall be completed within thirty (30) days, except that if the City Council finds that the complexity of the proposed changes or the need for public participation requires additional time, the hearing may be continued from time to time for a period not to exceed six months. At the conclusion of the hearing the City Council may abandon the proceedings or may, after passing upon all protests, submit the question of levying a new special tax or of changing the rate or method of apportionment of an existing tax or of changing the types of facilities and services to be financed by the district, or any combination, to the qualified electors of the district as specified in Article III of this chapter.

B. After the canvass of any election conducted pursuant to this section, the City Council shall adopt a resolution of change determining that the proposed levy of a new special tax or of changes in the types of facilities and services to be financed by the district, or any combination, are lawfully authorized, if two-thirds of the votes cast on the proposition are in favor of the proposed levy or changes.

C. Upon adoption of a resolution of change, the Clerk shall record notice of the changes pursuant to California Streets and Highways Code Section 3117.5.

(Ord. 94-40 § 2 (part), 1994; Ord. 2023-22 § 153, 2023)

The City Council may, by ordinance, dissolve any existing special improvement district which it has created upon making all of the following determinations:

A. That the district is not obligated to pay any outstanding debt.

B. That the district has no authorization to levy any special tax. Upon dissolving a district, the City Council shall cause an addendum to be recorded to the notice of special tax lien recorded pursuant to California Streets and Highways Code Section 3114.5 which shall state that the special improvement district and all associated liens, if any, have been dissolved.

(Ord. 94-40 § 2 (part), 1994; Ord. 2023-22 § 154, 2023)