Chapter 4.107 — CITY OF PASADENA SPECIAL TAX FINANCING IMPROVEMENT LAW

This chapter shall be known and may be cited as the "city of Pasadena special tax financing improvement law," and shall be referred to herein as the "law."

(Ord. 6471 § 2 (part), 1992)

This law is adopted pursuant to the charter of the city of Pasadena. In proceedings had pursuant to this law which are a municipal affair, any general laws referred to in this law are deemed a part of this law. In the event that any proceeding had pursuant to this law shall be adjudged a state affair, it is declared to be the intention that the proceedings were had pursuant to any applicable general law or laws.

This law provides an alternative method of financing certain public and private capital facilities and municipal services. The provisions of this law shall not affect or limit any other provisions of law authorizing or providing for the furnishing of facilities or services, or the raising of revenue for these purposes. The city may use the provisions of this law instead of or in conjunction with any other method of financing part or all of the cost of providing the authorized kinds of public and private capital facilities and municipal services.

(Ord. 6471 § 2 (part), 1992)

Any provision in this law which conflicts with any general law or act shall prevail over the other such provision in connection with any proceedings taken pursuant to this law. In the event any portion of this law shall be declared illegal, unenforceable, or unconstitutional, such provision shall be deemed severable from the rest of the provisions of this law.

(Ord. 6471 § 2 (part), 1992)

The board of directors of the city of Pasadena (referred to herein as the "board") may take any actions or make any determinations which it determines are necessary or convenient to carry out the purposes of this law and which are not otherwise prohibited by law.

(Ord. 6471 § 2 (part), 1992)

A community facilities district may be established under this law to finance any one or more municipal services within an area including, but not limited to, the following:

A.

Police protection services, including, but not limited to, criminal justice services. Criminal justice services shall not be limited to providing services for jails, detention facilities, and juvenile halls;

B.

Fire protection and suppression services, and ambulance and paramedic services;

C.

Recreation program services, library services and the operation and maintenance of museums and cultural facilities;

D.

Flood and storm protection services, including, but not limited to, the operation and maintenance of storm drainage systems, including cleaning, desiltation and dredging of detention and retention ponds and facilities, removal of debris, rubbish and solid waste;

E.

Maintenance of sanitary sewer system facilities and storm drainage facilities of the city including, but not limited to, sanitary sewer mains, laterals, manholes, pump stations, storm drainage channels, retention and detention facilities and appurtenances of the city to convey, treat, and dispose of sewage;

F.

Maintenance of parks, parkways, open space, landscaping, including related paths, bike paths, sidewalks, ornamental features and lighting;

G.

Maintenance of public streets, rights of way, public utility facilities and other public facilities from endangerment caused by earth slides and other earth subsidences from erosion, earthquakes, earth slide through repair, removal and/or reconstruction of slide areas through measures approved by the city;

H.

Services with respect to removal or remedial action for the cleanup of any hazardous substance released or threatened to be released into the environment. As used in this subdivision, the terms "remedial action" and "removal" shall have the meanings set forth in Sections 25322 and 25323, respectively, of the California Health and Safety Code, and the term "hazardous substance" shall have the meaning set forth in Section 25281 of the California Health and Safety Code. Community facilities districts shall provide the State Department of Health Services and local health and building departments with notification of any cleanup activity pursuant to this subdivision at least 30 days prior to commencement of the activity;

I.

Any other municipal service which the city is authorized by law to provide, including maintenance of public parking facilities and related appurtenances.

For purposes of this law, municipal services that may be financed include the performance by employees of functions, operations, maintenance and repair activities, on public and private lands.

(Ord. 6471 § 2 (part), 1992)

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 3 years or longer or may finance planning and design work which is directly related to the purchase, construction, expansion or rehabilitation of any such real or tangible property. The facilities need not be physically located within the district. A district may finance the purchase of facilities whose construction has been completed before or after the adoption of the resolution of formation if the facility is or was constructed pursuant to plans approved by the city, and the facility is inspected by the city and found to be in compliance with applicable city building codes and standards. The provisions of this code shall not affect any obligation of any party under any other applicable law, rule or regulation with respect to the payment of prevailing wages or the need, in the event that the city or another governmental agency is to construct the facilities, to publicly bid the construction of the facilities in accordance with any statute requiring public bidding.

For example, a community facilities district may finance facilities, including, but not limited to, the following:

A.

Local park, recreation, parkway, and open space facilities;

B.

Elementary and secondary school sites and structures;

C.

Libraries, community centers and recreational facilities;

D.

Child care facilities, including costs of insuring the facilities against loss, liability insurance in connection with the operation of the facility and other insurance costs relating to the operation of the facilities, but excluding all other operational costs;

E.

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. The district may enter into an agreement with a public utility to utilize those facilities to provide a particular service and for the conveyance of those facilities to the public utility. Any reimbursement by the public utility made to the district shall be utilized to reduce or

minimize the special tax levied within the district or improvement area, or to construct or acquire additional facilities within the district or improvement area, as specified in the resolution of formation;

F.

The acquisition, improvement, rehabilitation, or maintenance of any real or other tangible property, whether privately or publicly owned, for the purposes described in subdivision H of Section 4.107.050;

G.

Payment in full of all amounts necessary to eliminate any fixed special assessment liens or to pay, repay, or defease any obligation to pay or any indebtedness secured by any tax, fee, charge, or assessment levied within the area of a community facilities district or may pay debt service on that indebtedness. In addition, tax revenues of a district may be used to make lease or debt service payments on any lease, lease-purchase contract, or certificate of participation used to finance authorized district facilities;

H.

Improvements to or the rehabilitation of real property related to fire suppression, asbestos removal or removal of toxic waste or hazardous substances, or any combination thereof;

I.

A district may also pay for the following:

Work deemed necessary to bring buildings, including privately owned buildings, into compliance with seismic safety standards or regulations. Only work certified as necessary to comply with seismic safety standards or regulations by local building officials may be financed. Work on qualified historical buildings or structures shall be done in accordance with the State Historical Building Code (Part 2.7 (commencing with Section 18950) of Division 13 of the California Health and Safety Code),

In addition, a district may also pay for any work deemed necessary to reconstruct, repair, shore up, or replace any building damaged or destroyed by any earthquake, or by its aftershocks,

Work on privately owned buildings, including reconstruction or replacement of privately owned buildings pursuant to this subdivision, may only be financed by a tax levy if all of the votes cast on the question of levying the tax, vote in favor of levying the tax;

J.

A district may also pay for the following:

Work deemed necessary to repair and abate damage caused to privately owned buildings and structures by soil deterioration. "Soil deterioration" means a chemical reaction by soils that causes structural damage or defects in construction materials including concrete, steel, and ductile or cast iron. Only work certified as necessary by local building officials may be financed,

Work on privately owned buildings and structures pursuant to this subdivision, including reconstruction, repair, and abatement of damage caused by soil deterioration, may only be financed by a tax levy if all of the votes cast on the question of levying the tax vote in favor of levying the tax. Any district created to finance the work on privately owned buildings or structures, including reconstruction, repair, and abatement of damage caused by soil deterioration, shall consist only of lots or parcels on which the legislative body finds that the buildings or structures to be worked on pursuant to this subdivision suffer from soil deterioration;

K.

Any other facilities, public or private, which the city is authorized by law to contribute revenue to, or construct, own or operate.

(Ord. 6471 § 2 (part), 1992)

transferred to state—Savings.

A.

All or any part of the cost of any school facilities financed by a community facilities district may be shared by the State Allocation Board pursuant to Section 17718.5 of the California Education Code.

B.

If the State Allocation Board shares in any part of the cost of the school facilities, the ownership of those facilities and the real property upon which the facilities are located shall be transferred to the state of California. A copy of the deed by which the title is transferred shall be recorded in the office of the county recorder of the county in which the property is located. In addition, the community facilities district shall take one or more of the following actions:

Reduce the amount of bonds authorized to be issued by the community facilities district by an amount not to exceed the amount that the State Allocation Board contributes to the project;

Reduce the rate of any special tax which is levied within the community facilities district to reflect the amount that the State Allocation Board contributes to the project;

Reduce the rate of outstanding bonds or provide for the defeasance of outstanding bonds by an amount not to exceed the amount that the State Allocation Board contributes to the project;

Shorten the period of time during which a special tax is levied within the community facilities district to reflect funding needs resulting from the amount that the State Allocation Board contributes to the project.

C.

Any reductions pursuant to subsection B of this Section 4.107.070 shall be consistent with the provisions of the resolution of intention, formation, consideration and to incur bonded indebtedness and may be accomplished by resolution of the board, consistent with the provisions of this section.

D.

The board hereby finds and declares that this Section 4.107.070 is intended to be in furtherance and not in derogation of education and school financing, and thus an appropriate part of this law despite the fact that education is a state affair.

(Ord. 6471 § 2 (part), 1992)

The board may from time to time transfer moneys to a community facilities district or to an improvement area within a community facilities district, for the benefit of the district or improvement area, from any funds available to the city. The board also may appropriate any of the city's available moneys to a revolving fund to be used for the acquisition of real or personal property, engineering or other services, or the construction of structures or improvements needed in whole or in part to provide 1 or more of the facilities or services of a community facilities district. The district may reimburse the city for any amount transferred or appropriated pursuant to this Section 4.107.080, together with interest at the rate per annum, as determined by the board.

(Ord. 6471 § 2 (part), 1992)

A.

In connection with the financing of services and facilities pursuant to subdivision H of Section 4.107.050 and subdivision F of Section 4.107.060, the board may establish a revolving fund to be kept in the treasury of the district. Except as provided in subdivision B of this Section 4.107.090, moneys in the revolving fund shall be expended solely for the payment of costs with respect to those services and facilities. The revolving fund may be funded from time to time with moneys derived from any of the following:

Proceeds of the sale of bonds issued pursuant to Section 4.107.720;

Any taxes or charges authorized under this chapter;

Any other lawful source.

B.

Subject to the provisions of any resolution, trust agreement or indenture providing for the issuance of district bonds for the purposes set forth in subdivision F of Section 4.107.060, the board may withdraw money from the revolving fund whenever and to the extent that it finds that the amount of money therein exceeds the amount necessary to accomplish the purposes for which the revolving fund was established. Any moneys withdrawn from the revolving fund shall be used to redeem bonds of the district issued for the purposes set forth in subdivision F of Section 4.107.060 or shall be paid to taxpayers in the district in amounts which the legislative body determines.

(Ord. 6471 § 2 (part), 1992)

released or threatened to be released.

A.

Any responsible party as defined by subdivision (a) of Section 25323.5 of the California Health and Safety Code shall be liable to the district for the costs incurred in the removal or remedial action for the cleanup of any hazardous substance released or threatened to be released into the environment. The amount of the costs shall include interest on the costs

accrued from the date of expenditure. The interest shall be calculated based on the average annual rate of return on the district's investment of surplus funds for the fiscal year in which the district incurred the costs. Recovery of costs by a community facilities district under this section shall be commenced before or immediately upon completion of the removal or remedial action, and payments received hereunder by the district shall be deposited in the revolving fund in accordance with Section 4.107.090.

B.

To expedite cleanup, this Section 4.107.100 is intended to provide an alternative method of financing the cost of removal or remedial action for the cleanup of any hazardous substance through the issuance of voter-approved limited obligation bonds. The provisions of this section shall not affect or limit the provisions of any other law establishing the liability of any person for, or otherwise regulating, the generation, transportation, storage, treatment, or disposal of hazardous substances. The scope and standard of liability for any costs recoverable pursuant to Section 4.107.100 shall be the scope and standard of liability set forth in the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. Sec. 6901 et. seq.), or any other provision of state or federal law establishing responsibility for cleanup of hazardous waste sites.

(Ord. 6471 § 2 (part), 1992)

Conditions.

A.

At any time either before or after the formation of a community facilities district, the board may accept advances of funds or work in-kind from any source, including, but not limited to, private persons or private entities and may provide for the use of those funds or that work in-kind for any authorized purpose, including, but not limited to, paying any cost incurred by the city in creating a community facilities district. The board may enter into an agreement with the person or entity advancing the funds or work in-kind to repay all or a portion of the funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work in-kind, as determined by the board, with or without interest, under all of the following conditions:

The proposal to repay the funds or the value or cost of the work in-kind, whichever is less, is included in the resolution of intention or the resolution of formation to establish the district, or in the resolution of consideration to alter the types of public facilities and services provided within an established district;

Any proposed special tax or change in a special tax is approved by the qualified electors of the district pursuant to this law. Any agreement may specify that if the qualified electors of the district do not approve the proposed special tax or change in a special tax, the local agency shall return any funds which have not been committed for any authorized purpose by the time of the election to the person or entity advancing the funds;

Any work in-kind accepted pursuant to this section shall have been performed or constructed pursuant to plans approved by the city, and the work in-kind shall be inspected by the city and found to be in compliance with applicable city building codes and standards, and any laws applicable to the payment of prevailing wages or the public bidding of the construction of the work in-kind.

B.

Any such agreement shall not constitute a debt or liability of the city.

(Ord. 6471 § 2 (part), 1992)

This law shall be liberally construed in order to effectuate its purposes. No error, irregularity, informality, and no neglect or omission of any officer, in any procedure taken under this law, which does not directly affect the jurisdiction of the board to order the installation of the facility or the provision of service, or the levy of special taxes, shall void or invalidate such proceeding or any levy for the costs of a facility or service.

(Ord. 6471 § 2 (part), 1992)

The failure of any person to receive a notice, resolution, order, or other matter shall not affect in any way whatsoever the validity of any proceedings taken under this law, or prevent the legislative body from proceeding with any hearing so noticed.

(Ord. 6471 § 2 (part), 1992)

A.

This law applies insofar as the city has the power to install or contribute revenue for any of the facilities or provide or contribute revenue for any of the services authorized under this law. The officers of the city who have similar powers and duties as the municipal officers referred to in this law shall have the powers and duties given by this law to the municipal officials. Where no similar officer exists, the city manager of the city shall appoint a person or designate an officer to perform the duties under this law.

B.

The city may initiate proceedings pursuant to Section 4.107.200 to include territory proposed for annexation to the city within a community facilities district if a petition or resolution of application for the annexation of the territory to the city has been accepted for filing and a certificate of filing has been issued by the executive officer of the local agency formation commission at the time the proceedings to create the district are initiated. Those proceedings may be completed only if the annexation of the territory to the city is completed.

(Ord. 6471 § 2 (part), 1992)

A.

The city may include within the boundaries of a community facilities district created pursuant to this law lands lying within the boundaries of any one or more cities, or counties, when such lands, in the opinion of the board, will be benefitted by the proposed work if the consent of the legislative body of any territory proposed to be assessed shall first be obtained to the formation of the community facilities district and, if any of the proposed facilities or services are to be done within such territory, to the facilities or services described in the resolution of intention adopted under Section 4.107.220 and the assumption of jurisdiction thereover for the purposes aforesaid prior to the adoption thereof.

B.

The proposed resolution of intention shall be submitted to the legislative bodies which have jurisdiction over the territory into which the proposed facilities or services or the community facilities district therefor may extend. When the resolution of intention is approved and the consent of the legislative bodies whose consent is necessary is obtained, the resolution of intention may be adopted. The consent, if any, shall, of itself, constitute assent to the assumption of jurisdiction thereover for all purposes of the proceeding and authorize the board to take each and every step required for or suitable for the

consummation of the facilities or services extending outside the limits of the city, and the levying, collecting and enforcement of the special taxes to cover the expenses thereof and the issuance and enforcement of bonds as provided in this law.

(Ord. 6471 § 2 (part), 1992)

A.

At any time before or after the formation of a district, the board may enter into a joint community facilities agreement with any other local agency pursuant to this section or into a joint exercise of powers agreement pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the California Government Code to exercise any power authorized by this ordinance if the board adopts a resolution declaring that such a joint agreement would be beneficial to the residents of the city or the district.

B.

Notwithstanding Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the California Government Code, a contracting party may use the proceeds of any special tax or charge levied pursuant to this law or of any bonds or other indebtedness issued pursuant to this law to provide facilities or services which that contracting party is otherwise authorized by law to provide, even though another contracting party does not have the power to provide those facilities or services.

C.

The agreement entered into pursuant to this Section 4.107.150 may provide for the division of responsibility to provide any of the facilities or services among the entities entering into the agreement. The agreement shall provide for the allocation and distribution of the proceeds of any special tax levy among the parties to the agreement.

(Ord. 6471 § 2 (part), 1992)

Unless the context otherwise requires, the definitions contained in this article shall govern the construction of this law.

A.

"Clerk" means the city clerk of the city.

B.

"Community facilities district" or "district," means a district established pursuant to this law for the sole purpose of financing facilities and/or services.

C.

"Cost" means the expense of constructing or purchasing the facility and of related land, right of way, easements, including incidental expenses, and the cost of providing authorized services, including incidental expenses.

D.

"Debt" means any binding obligation to repay a sum of money, including obligations in the form of bonds, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses or individuals.

E.

"Incidental expense" includes all of the following:

The cost of planning and designing facilities to be financed pursuant to this law, including the cost of environmental evaluations of those facilities;

The costs associated with the creation of the district, issuance of bonds, determination of the amount of taxes, collection of taxes, payment of taxes, or costs otherwise incurred in order to carry out the authorized purposes of the district;

Any other expenses incidental to the management, administration, completion, and inspection of the construction and/or acquisition of the facilities.

F.

"Landowner," or "owner" or "owner of land" means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of the land by the city clerk. Notwithstanding the foregoing, "landowner," or "owner" or "owner of land" means, with respect to any land which is the subject of a condemnation action, the person entitled to possession of the land. The board has no obligation to obtain other information as to the ownership of the land, and its determination of ownership shall be final and conclusive for the purposes of this law. Except as provided in Sections 4.107.170 or 4.107.180, the city or any other public agency is not a landowner or owner of land for purposes of this law, unless the land owned by the city or any public agency or any leasehold therein would be subject to a special tax levied pursuant to this law.

G.

"Legislative body" means the legislative body or governing board of any local agency, and with respect to the city, shall mean the board.

H.

"Local agency" means any city or county, whether general law or chartered, special district, school district, joint powers entity created pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1, or any other municipal corporation, district, or political subdivision of the state.

I.

"Rate" means a single rate of tax or a schedule of rates.

(Ord. 6471 § 2 (part), 1992)

application of special tax.

A.

If property not otherwise exempt from a special tax levied pursuant to this law is acquired by a public entity through a negotiated transaction, or by gift or devise, the special tax shall continue to be levied on the property acquired and shall be enforceable against the public entity that acquired the property.

Even if the resolution of formation that authorized creation of the district did not specify conditions under which the obligation to pay a special tax may be prepaid and permanently satisfied, the board may specify conditions under which the public agency that acquires the property may prepay and satisfy the obligation to pay the tax. The conditions may be specified only if the board finds and determines that the prepayment arrangement will fully protect the interests of the owners of the district's bonds.

B.

Notwithstanding any other provision of this law, any public agency (including but not limited to the city and the Pasadena Community Development Commission), other than a county or school district, may subject property owned by it to the levy of special taxes, if it shall certify to the board:

Its agreement to do so;

That it intends to dispose of such property by transfer to a nongovernmental agency at some time in the future; and

That it agrees to cooperate in the sale of the property if necessary to obtain funds to pay any special taxes levied upon such property.

Notwithstanding the foregoing, this Section 4.107.170(B) shall only apply to city owned property if, in addition to the foregoing clauses 1, 2 and 3, the board determines that no levy of special taxes will occur until after such property has been first disposed of as contemplated by clause 2, above.

(Ord. 6471 § 2 (part), 1992)

If property subject to a special tax levied pursuant to this law is acquired by the city or any public entity or entities through eminent domain proceedings, the obligation to pay the special tax shall be treated, pursuant to Section 1265.250 of the California Code of Civil Procedure, as if it were a special annual assessment. For this purpose, the present value of the obligation to pay a special tax to pay the principal and interest on any indebtedness incurred by the district prior to the date of apportionment determined pursuant to Section 5082 of the California Revenue and Taxation Code shall be treated the same as a fixed lien special assessment.

(Ord. 6471 § 2 (part), 1992)

Collection.

A.

If a public agency owning property, including property held in trust for any beneficiary, which is exempt from a special tax pursuant to Section 4.107.570 grants a leasehold or other possessory interest in the property to a nonexempt person or entity, the special tax shall, notwithstanding Section 4.107.570, be levied on the leasehold or possessory interest and shall be payable by the owner of the leasehold or possessory interest.

B.

When entering into a lease or other written contract creating a possessory interest that may be subject to taxation, pursuant to subdivision A of this Section 4.107.190, the public agency shall include, or cause to be included, in the contract a statement that the property interest may be subject to special taxation pursuant to this chapter, and that the party on whom the possessory interest is vested may be subject to the payment of special taxes levied on the interest. Failure to comply with the requirements of this section shall not, however, invalidate the contract.

C.

If the special tax on any possessory interest levied pursuant to subdivision A of this Section 4.107.190 is unpaid when due, the tax collector may use those collection procedures which are available for the collection of assessments on the

unsecured roll.

(Ord. 6471 § 2 (part), 1992)

Proceedings for the establishment of a community facilities district may be instituted by the board on its own initiative or shall be instituted by the board when any of the following occurs:

A.

A petition requesting the institution of the proceedings signed by the requisite number of registered voters, as specified in subdivision D of Section 4.107.210, is filed with the city clerk. The petition may consist of any number of separate instruments, each of which shall comply with all of the requirements of the petition, except as to the number of signatures.

B.

A petition requesting the institution of the proceedings signed by landowners owning the requisite portion of the area of the proposed district, as specified in subdivision D of Section 4.107.210, is filed with the city clerk.

The petitions filed pursuant to subdivisions A and B of this Section 4.107.200 shall be accompanied by the payment of a fee in an amount which the finance director determines is sufficient to compensate the city for all costs incurred in conducting proceedings to create a district pursuant to this law, and shall not be considered received until such payment has been made to the city.

(Ord. 6471 § 2 (part), 1992)

A petition requesting the institution of proceedings for the establishment of a community facilities district shall do all of the following:

A.

Request the board to institute proceedings to establish a community facilities district pursuant to this law;

B.

Describe the boundaries of the territory which is proposed for inclusion in the district, which may be by reference to a map to be filed with the city clerk;

C.

Generally state the type or types of facilities and/or services to be financed by the district;

D.

Be signed by not less than 10% of the registered voters residing within the territory proposed to be included within the district or by owners of not less than 10% of the area of land proposed to be included within the district. If the board finds that the petition is signed by the requisite number of registered voters residing within the territory proposed to be included within the district or by the requisite number of owners of land proposed to be included within the district, that finding shall be final and conclusive.

(Ord. 6471 § 2 (part), 1992)

Within 6 months after a petition requesting the institution of proceedings for the establishment of a community facilities district is filed with the city clerk, the board shall adopt a resolution of intention to establish a community facilities district in the form specified in Section 4.107.230.

(Ord. 6471 § 2 (part), 1992)

Proceedings for the establishment of a community facilities district shall be instituted by the adoption of a resolution of intention to establish the district which shall do all of the following:

A.

State that a community facilities district is proposed to be established under the terms of this law and describe the boundaries of the territory proposed for inclusion in the district, which may be accomplished by reference to a map on file in the office of the city clerk, showing the proposed community facilities district. The boundaries of the territory proposed for inclusion in the district shall include the entirety of any parcel subject to taxation by the proposed district.

B.

State the name proposed for the district in substantially the following form: "Community Facilities District No._____ of the city of Pasadena."

C.

Generally state the type or types of facilities and/or services proposed to be financed by the district pursuant to this law. If the purchase of completed facilities or the incurring of incidental expenses is proposed, the resolution may identify those facilities or expenses. If facilities are proposed to be financed through any lease, lease-purchase, or installment-purchase arrangement, the resolution shall briefly describe the proposed arrangement.

D.

State that, except where funds are otherwise available, a special tax sufficient to pay for all facilities and/or services, secured by recordation of a continuing lien against all nonexempt real property in the district, will be annually levied within the area of the district. The resolution shall specify the rate and method of apportionment and manner of collection of the special tax in sufficient detail to allow each landowner or resident within the proposed district to estimate the maximum amount that he or she will have to pay. The board may specify conditions under which the rate of the special tax may be permanently reduced in compliance with the provisions of Section 4.107.070.

E.

Fix a time and place for a public hearing on the establishment of the district which shall not be less than 10 or more than 60 days after the adoption of the resolution and direct the giving of notice as provided in Section 4.107.250 and, if desired, 4.107.260 hereof.

F.

Direct the preparation and filing of the report under Section 4.107.240 hereof.

G.

Contain a description of the proposed voting procedure.

(Ord. 6471 § 2 (part), 1992)

At the time of the adoption of the resolution of intention to establish a community facilities district, the board shall direct the finance director or another appropriate officer to file or cause to be prepared and filed at or before the time of the hearing, a report with the city clerk containing a brief description of the facilities and services proposed to be financed by type and an estimate of the cost of providing those facilities and services, together with an estimate of the costs of any bond issuance and the city's administration of the district. If the purchase of completed facilities or the payment of incidental expenses is proposed, the report shall contain an estimate of the cost of those facilities or incidental expenses. If the purchase of completed public facilities or the payment of incidental expenses is proposed, the board shall direct its appropriate officer to estimate the fair and reasonable cost of those facilities or incidental expenses. If removal or remedial action for the cleanup of any hazardous substance is proposed, the board shall (a) direct its responsible officer to prepare or cause to be prepared, a remedial action plan based upon factors comparable to those described in subdivision (c) of Section 25356.1 of the California Health and Safety Code or (b) determine, on the basis of the particular facts and circumstances, which shall be comparable to those described in subdivision (g) of Section 25356.1 of the California Health and Safety Code, that the remedial action is not required.

The reports shall be made a part of the record of the hearing on the resolution of intention to establish the district.

(Ord. 6471 § 2 (part), 1992)

A.

The city clerk shall publish a notice of the hearing once in a newspaper of general circulation circulated in the proposed district. Publication shall be complete at least 7 days prior to the date of the hearing.

B.

The notice shall contain all of the following information:

The text or a summary of the resolution of intention to establish the district, which may refer to documents on file in the office of the city clerk for detail;

The time and place of the hearing on the establishment of the district;

A statement that at the hearing the testimony of all interested persons or taxpayers for or against the establishment of the district, the extent of the district, or the furnishing of specified types of facilities and/or services will be heard. The notice shall also describe, in summary, the effect of protests made by registered voters or landowners against the establishment of the district, the extent of the district, the furnishing of a specified type of facilities or services, or a specified special tax, as provided in Section 4.107.280;

A description of the proposed voting procedure.

(Ord. 6471 § 2 (part), 1992)

The board may also direct the city clerk to give notice of the hearing by first-class mail to each registered voter and to each landowner within the proposed district. This notice shall be mailed at least 7 days before the hearing and shall contain the same information as is required to be contained in the notice published pursuant to Section 4.107.250, except that the entire

text of the resolution of intention may be omitted if the date, number and fact of its adoption are shown and the proposed facilities and/or services are briefly described and the proposed amounts and method of apportionment of the special tax are shown.

(Ord. 6471 § 2 (part), 1992)

At the hearing, protests against the establishment of the district, the extent of the district, or the furnishing of specified types of facilities or services within the district may be made orally or in writing by any interested persons or taxpayers. Any protests pertaining to the regularity or sufficiency of the proceedings shall be in writing and shall clearly set forth the alleged irregularities and defects. To be counted under Section 4.107.280 any written protest shall be filed with the city clerk on or before the time fixed for the hearing. The board 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. 6471 § 2 (part), 1992)

services from resolution of formation.

If 50% or more of the registered voters, or 6 registered voters, whichever is more, residing within the territory proposed to be included in the district, or the owners of one-half or more of the area of the land in the territory proposed to be included in the district and not exempt from the special tax, file written protests against the establishment of the district, and protests are not withdrawn so as to reduce the value of the protests to less than a majority, no further proceedings to create the specified community facilities district or to levy the specified special tax shall be taken for a period of 6 months from the date of the decision of the board. If the majority protests are only against the furnishing of a specified type or types of facilities or services within the proposed district, or against levying a specified special tax, those types of facilities or services or the specified special tax shall be eliminated from the resolution of formation.

(Ord. 6471 § 2 (part), 1992)

abandon or proceed with establishment of district.

The hearing may be continued from time to time without further notice under Section 4.107.250 or 4.107.260, but shall be completed within 6 months of the original hearing date. The board may modify the resolution of intention by eliminating proposed facilities or services, or by changing the rate or method of apportionment of the proposed special tax so as to reduce the maximum special tax to be levied on all or a portion of the property within the proposed district, or by removing territory from the proposed district. Any modifications shall be made by action of the board at or immediately following the public hearing. If the board proposes to modify the resolution of intention in a way that will increase the probable special tax to be paid by the owners of any lot or parcel, it shall direct that a report be prepared that includes a brief analysis of the impact of the proposed modifications on the probable special tax to be paid by the owners of lots or parcels in the district, and shall receive and consider the report before approving the modifications or any resolution of formation which includes those modifications. At the conclusion of the hearing, the board may abandon the proposed establishment of the community facilities district or may, after passing upon all protests, determine to proceed with establishing the district, except as provided in Section 4.107.280 hereof.

(Ord. 6471 § 2 (part), 1992)

of prior proceedings.

If the board determines to establish the district, it shall adopt a resolution of formation establishing the district. The resolution of formation shall incorporate by reference all of the information required to be included in the resolution of

intention to establish the district specified in Section 4.107.230. If a special tax is proposed to be levied in the district to pay for any facilities and/or services and the special tax has not been eliminated by majority protest pursuant to Section 4.107.280, the resolution shall state that fact and all of the following:

A.

Determine whether all proceedings were valid and in conformity with the requirements of this law, which finding shall be final and conclusive;

B.

State that the proposed special tax to be levied within the district has not been precluded by majority protest pursuant to Section 4.107.280;

C.

Identify any facilities and/or services, as may be changed under Section 4.107.280 or 4.107.290 hereof, proposed to be funded with the proceeds of the special tax;

D.

Set forth the proposed rate and method of apportionment of the special tax;

E.

Set forth the name, address, and telephone number of the office, department, or bureau of the city which will be responsible for preparing annually a current roll of special tax levy obligations by assessor's parcel number and which will be responsible for estimating future special tax levies pursuant to Section 4.107.270;

F.

State that upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code of California, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property in the district and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the tax by the board ceases;

G.

Set forth the county of recordation and the book and page in the Book of Maps of Assessments and Community Facilities Districts in the county recorder's office where the boundary map of the proposed community facilities district has been recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code of California;

H.

Provide for the conduct of the election required under Section 4.107.350 hereof;

I.

At the option of the board, provide for the establishment of or change in the appropriations limit under Section 4.107.340 hereof.

(Ord. 6471 § 2 (part), 1992)

A tax imposed pursuant to this law is a special tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property. However, a special tax levied pursuant to this law may be on or based on benefit received by parcels of real property, the cost of providing facilities and/or services available to each parcel, or any

other reasonable basis as determined by the board. A special tax apportioned on any of these bases shall not be construed to be on or based upon the ownership of real property.

(Ord. 6471 § 2 (part), 1992)

A.

A community facilities district may include areas of territory that are not contiguous.

B.

In establishing the boundaries of the district, the board may alter the exterior boundaries of the district to include less territory than that described in the recorded boundary map but it may not include any territory not described in that map.

Land devoted primarily to agricultural, timber, or livestock uses and being used for the commercial production of agricultural, timber or livestock products may be included in a community facilities district only if such land is contiguous to other land which is included within the described exterior boundaries of the community facilities district, and only if the legislative body finds that the land will be benefitted by any of the types of public facilities and services proposed to be provided within the district. The land may, however, be included in the community facilities district, if the owner requests its inclusion.

(Ord. 6471 § 2 (part), 1992)

The board may submit a proposition to establish or change the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, of a community facilities district to the qualified electors of a proposed or established district. The proposition establishing or changing the appropriations limit shall become effective if approved by the qualified electors voting on the proposition and shall be adjusted for changes in the cost of living and changes in populations, as defined by subdivisions (b) and (c) of Section 7901 of the California Revenue and Taxation Code, except that the change in population may be estimated by the legislative body in the absence of an estimate by the state of California Department of Finance, and in accordance with Section 1 of Article XIII B of the California Constitution. For purposes of adjusting for changes in population, the population of the district shall be deemed to be at least 1 person during each calendar year.

(Ord. 6471 § 2 (part), 1992)

A.

By resolution, the board shall submit the levy of any special taxes to the qualified electors of the proposed community facilities district subject to the levy or to the qualified electors of the territory to be annexed by the community facilities district subject to the levy in the next general election or in a special election to be held, notwithstanding any other requirement, including any requirement that elections be held on specified dates, contained in the California Elections Code, at least 5 days, but not more than 180 days, following the adoption of the resolution of formation. The legislative body shall provide the resolution of formation, a certified map of sufficient scale and clarity to show the boundaries of the district, and a sufficient description to allow the election official to determine the boundaries of the district to the official conducting the election after the adoption of the resolution of formation, if requested by the official conducting the election. Assessor's parcel numbers for the land within the district shall be included if it is a landowner election or the district does not conform to an existing district's boundaries, if requested by the official conducting the election. If the election is to be held less than 125 days following the adoption of the resolution of formation and the election official is other than the city clerk, the concurrence of the election official conducting the election shall be required. However, any time limit specified by this

Section 4.107.350 or requirement pertaining to the conduct of the election (including but not limited to any requirements described in Section 4.107.360) may be waived with the unanimous consent of the qualified electors of the proposed district and the concurrence of the election official conducting the election. In the event of such unanimous waiver, the election official shall be the city clerk.

B.

Except as otherwise provided in subdivision C of this Section 4.107.350, if at least 12 persons, who need not necessarily be the same 12 persons, have been registered to vote within the territory of the proposed community facilities district for each of the 90 days preceding the date of the protest hearing, the vote shall be by the registered voters of the proposed district, with each voter having 1 vote. Otherwise, the vote shall be by the landowners of the proposed district and each landowner who is the owner of record at the close of the protest hearing, or the authorized representative thereof, shall have 1 vote for each acre or portion of an acre of land that he or she owns within the proposed community facilities district. The number of votes to be voted by a particular landowner shall be specified on the ballot provided to that landowner.

C.

If the proposed special tax will not be apportioned in any tax year on any portion of property in the district in residential use in that tax year, as determined by the legislative body, the legislative body may provide that the vote shall be by the landowners of the proposed district whose property would be subject to the tax if it were levied at the time of the election. Each of these landowners shall have 1 vote for each acre, or portion thereof, that the landowner owns within the proposed district which would be subject to the proposed tax if it were levied at the time of the election.

D.

Ballots for the special election authorized by subdivision A of this Section 4.107.350 may be distributed to qualified electors by mail with return postage prepaid or by personal service by the election official. The election official may provide a certificate of the proper mailing or delivery of ballots, which certificate shall constitute conclusive proof of mailing or delivery in the absence of fraud. The voted ballots shall be returned to the election officer conducting the election not later than the time specified in the resolution calling the election. However, if all the qualified voters have voted, the election may be closed with the concurrence of the official conducting the election.

(Ord. 6471 § 2 (part), 1992)

A.

Except as otherwise provided in this law, the provisions of law regulating elections of the city, insofar as they may be applicable, shall govern all elections conducted pursuant to this law. Except as provided in subdivision B of this Section 4.107.360, there shall be prepared and included in the ballot material provided to each voter an impartial analysis, and arguments and rebuttals, if any.

B.

Analysis and arguments, or other formalities relating to the form of the ballot or the conduct of the election, may be waived with the unanimous consent of all the qualified electors.

(Ord. 6471 § 2 (part), 1992)

A.

If the election is to be conducted by mail or hand delivered ballot, the election official conducting the election shall provide ballots and election materials pursuant to subdivision D of Section 4.107.350 and Section 4.107.360, together with all supplies and instructions necessary for the use and return of the ballot.

B.

The identification envelope for return of ballots used in landowner elections shall contain the following:

The name of the landowner;

The address of the landowner;

A declaration, under penalty of perjury, stating that the voter is the owner of record or the authorized representative of the landowner entitled to vote and is the person whose name appears on the identification envelope;

The date of signing and place of execution of the declaration described in clause 3 above;

The printed name and signature of the voter;

The address of the voter;

A notice that the envelope contains an official ballot and is to be opened only by the election official.

(Ord. 6471 § 2 (part), 1992)

A.

After the canvass of returns of any election pursuant to Section 4.107.350, the board may levy any special tax as specified in the resolution of formation adopted pursuant to Section 4.107.300 within the territory of the district, if two-thirds of the votes cast upon the question of levying the tax are in favor of levying that tax.

B.

After the canvass of returns of any election conducted pursuant to Section 4.107.350, the board shall take no further action with respect to levying the specified special tax within the community facilities district for six months from the date of the election, if the question of levying that specified special tax fails to receive approval by two-thirds of the votes cast upon the question.

(Ord. 6471 § 2 (part), 1992)

A.

Upon a determination by the board that the requisite two-thirds of votes cast in an election held pursuant to Section 4.107.350 are in favor of levying the special tax, the city clerk shall record or cause to be recorded the notice of special tax lien provided for in Section 3114.5 of the Streets and Highways Code of California, whereupon the lien of the special tax

shall attach as provided in Section 3115.5 of the Streets and Highways Code of California. The notice of special tax lien shall be recorded in the office of the county recorder in each county in which any portion of the district is located.

B.

Division 4.5 (commencing with Section 3100) of the Streets and Highways Code of California applies with respect to any proceedings undertaken pursuant to this law. This law is a "principal act" as that term is defined in Section 3100 of the Streets and Highways Code of California.

(Ord. 6471 § 2 (part), 1992)

A.

Upon approval of a special tax pursuant to subdivision A of Section 4.107.360, 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 Sections 4.107.410 through 4.107.560, and except that the legislative body may levy the special tax at a rate lower than that specified in the resolution of formation. 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, purchase, expand, improve or maintain facilities under authority of this law, 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 law.

B.

When the board determines that the special tax shall cease to be levied, the board shall direct the city 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 is extinguished. The notice of cessation of special tax shall 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, and wherein the notice of special tax lien is recorded.

(Ord. 6471 § 2 (part), 1992)

Except as otherwise provided in this chapter, the board may, at any time, after conducting a public hearing, eliminate 1 or more of the types of facilities and services specified in the resolution of formation to establish the existing district but may not finance any types of facilities and services that were not specified in the resolution of formation.

(Ord. 6471 § 2 (part), 1992)

The board 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 law unless the board determines that the reduction or termination of that tax would not interfere with the timely retirement of that debt. Otherwise, the board may adopt a resolution of consideration when:

A.

If the board determines that the public convenience and necessity require any change in the types of authorized facilities or services which should be financed by an established community facilities 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 board may adopt a resolution of consideration to alter the types of facilities or services to be financed by the district, to levy a new special tax or special taxes, or, except as provided in subdivision B of this Section 4.107.420, to alter the rate or method of apportionment of the special tax; or

B.

If a petition signed by 50% or more of the registered voters residing in the district, or by the owners of 50% or more of the territory within the district, is filed with the city clerk requesting that proceedings be commenced to change the types of 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 board shall within 90 days thereafter adopt a resolution of consideration in the form specified in Section 4.107.430 to make those changes within the community facilities district. Any petition filed by landowners shall be accompanied by the payment of such fee as the finance director determines is sufficient to compensate the city for all costs incurred in conducting proceedings pursuant to this article.

(Ord. 6471 § 2 (part), 1992)

The resolution of consideration shall contain the following:

A.

State the name of the existing district and refer to the resolution of formation for further particulars;

B.

Generally describe the territory included in the district or make reference to the recorded boundary map thereof;

C.

Specify the changes in facilities and/or services which the district is authorized to 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 of consideration which shall not be less than 10 or more than 180 days after the adoption of the resolution of consideration.

(Ord. 6471 § 2 (part), 1992)

The city clerk shall give or cause to be given notice of the hearing in the same manner, containing the same information, as applicable, and within the same time as provided for the giving of notice of a hearing on a resolution of intention to establish a community facilities district under Section 4.107.250 hereof.

(Ord. 6471 § 2 (part), 1992)

The provisions of Sections 4.107.270 through 4.107.400 shall apply to the proceedings for changes.

(Ord. 6471 § 2 (part), 1992)

After the canvass of any election conducted pursuant to Sections 4.107.350 and 4.107.450, the board shall determine 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, have full legal effect, if two-thirds of the votes cast on the proposition are in favor of the proposed levy or changes.

Upon a determination by the board that the proposed levy or changes have full legal effect, the city clerk shall record notice of the changes pursuant to the California Streets and Highways Code.

(Ord. 6471 § 2 (part), 1992)

The legislative body may, by this law, dissolve any existing district which it has created upon making all of the following determinations:

A.

That the district is not obligated to pay any outstanding debt; and

B.

That the district has no authorization to levy any special tax.

Upon dissolving a district, the board shall cause an addendum to be recorded to the notice of special tax lien recorded pursuant to Section 3114.5 of the Streets and Highways Code of California which shall state that the community facilities district and all associated liens, if any, have been dissolved.

(Ord. 6471 § 2 (part), 1992)

The board may annex territory to an existing community facilities district as provided in Sections 4.107.490 through 4.107.560. The annexed territory need not be contiguous to territory included in the existing community facilities district.

(Ord. 6471 § 2 (part), 1992)

If the board determines that public convenience and necessity require that territory be added to an existing community facilities district, or if 1 or more of the voters residing within certain territory or landowners request the board to include territory within the district, the board may adopt a resolution of intention to annex the territory or to provide for future annexation of the territory.

(Ord. 6471 § 2 (part), 1992)

The resolution of intention to annex the territory or to provide for future annexation of the territory shall do all of the following:

A.

State the name of the existing community facilities district.

B.

Generally describe the territory included in the existing district and the territory proposed to be annexed. As an alternative, the resolution may identify territory proposed for annexation in the future, with the condition that parcels within that territory may be annexed only with the unanimous approval of the owner or owners of each parcel or parcels at the time that parcel or those parcels are annexed.

C.

Specify the types of facilities and/or services provided pursuant to this law in the existing district and the types of facilities and/or services to be provided in the territory proposed to be annexed or to be annexed in the future; and include a plan for sharing facilities and providing services that will be provided in common within the existing district and the territory proposed to be annexed or to be annexed in the future.

D.

Specify any special taxes which would be levied within the territory proposed to be annexed or to be annexed in the future to pay for facilities and/or services provided pursuant to this law within that territory. A special tax proposed to pay for services to be supplied within the territory proposed to be annexed or to be annexed in the future shall be equal to any special tax levied to pay for the same services in the existing district, except that a higher or lower tax may be levied within the territory proposed to be annexed or to be annexed in the future to the extent that the actual cost of providing the services in that territory is higher or lower than the cost of providing those services in the existing district. A special tax proposed to pay for facilities financed with bonds secured by the existing community facilities district shall be the same as the tax levied in the existing district for that purpose, except that a higher special tax may be levied for that purpose within the territory proposed to be annexed or to be annexed in the future to compensate for the interest and principal previously paid by the existing community facilities district, less any depreciation allocable to the facility as determined by the board in its sole discretion.

E.

Specify any alteration in the special tax rate levied within the existing community facilities district as a result of the proposed annexation. The maximum tax rate in the existing community facilities district may not be increased as a result of proceedings pursuant to this article.

F.

Fix a time and place for a hearing upon the resolution which shall not be less than 10 nor more than 180 days after the adoption by the board of the resolution of intention to annex territory or to provide for future annexation of territory pursuant to Section 4.107.500.

(Ord. 6471 § 2 (part), 1992)

The city 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 community facilities district, as required by Section 4.107.250. The notice shall do all of the following:

A.

Contain the text or a summary of the resolution adopted pursuant to Section 4.107.500;

B.

State the time and place for the hearing;

C.

State that at the hearing the testimony of all interested persons for or against the annexation of territory or the future annexation of territory to the community facilities district or the levying of special taxes within the territory proposed to be annexed or proposed to be annexed in the future will be heard.

(Ord. 6471 § 2 (part), 1992)

At the hearing, protests against the proposals described in the resolution of intention may be made orally by any interested person. 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 city clerk at or prior to the time fixed for the hearing. The board 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. 6471 § 2 (part), 1992)

If 50% or more of the registered voters, or 6 registered voters, whichever is more, residing within the existing community facilities district, or if 50% or more of the registered voters or 6 registered voters, whichever is more, residing within the territory proposed for annexation or proposed to be annexed in the future, or if the owners of one-half or more of the area of land in the territory proposed to be annexed or proposed to be annexed in the future, file written protests against the proposed annexation of territory to the existing community facilities district or the proposed addition of territory to the existing community facilities district in the future, and protests are not withdrawn so as to reduce the protests to less than a majority, no further proceedings shall be undertaken for a period of 6 months from the date of decision of the board on the issues discussed at the hearing.

(Ord. 6471 § 2 (part), 1992)

electors.

The hearing may be continued from time to time, but shall be completed within 6 months. At the conclusion of the hearing, the legislative body may abandon the proceedings or may, after passing upon all protests, submit the question of levying a special tax within the area proposed to be annexed to the existing community facilities district to the qualified electors of the area proposed to be annexed, in the manner specified for elections in Section 4.107.350, or may provide for the annexation of territory proposed for annexation in the future upon the unanimous approval of the owner or owners of each parcel or parcels at the time that the parcel or parcels are annexed, without additional hearings.

(Ord. 6471 § 2 (part), 1992)

A.

After the canvass of returns of any election conducted in accordance with Section 4.107.540, the board shall determine that the area proposed to be annexed is added to and part of the existing community facilities district with full legal effect, and the board may levy any special tax within the annexed territory, as specified in the resolution of intention to annex adopted pursuant to Section 4.107.490, if two-thirds of the votes cast on the proposition are in favor of levying the special tax.

B.

Upon a determination by the board that the area proposed to be annexed is added to the existing community facilities district, the city clerk shall record notice of the annexation pursuant to the California Streets and Highways Code.

(Ord. 6471 § 2 (part), 1992)

After the canvass of returns of any election conducted in accordance with Section 4.107.540, the board shall take no further action on annexing the territory proposed to be annexed to the community facilities district for a period of 6 months from the date of the election if less than two-thirds of the votes cast on the proposition are in favor of levying the special tax.

(Ord. 6471 § 2 (part), 1992)

Use of tax proceeds—Tax collection, penalties, etc.

A.

After a community facilities district has been created and authorized to levy specified special taxes pursuant to the foregoing sections of this law the board may, by ordinance, levy the special taxes at the rate and apportion them in the manner specified in the resolution of formation or consideration, as applicable, adopted pursuant to the foregoing sections of this law. Any such ordinance, after adoption, shall remain in effect until repealed by a later ordinance. The board may, by resolution, clarify any aspect of the levy of the special tax as provided by ordinance. Not later than August 10 (or such later date as may be allowed by the county) the official designated under Section 4.107.580 will cause to be prepared a list of all parcels subject to the special tax and the amounts of special tax to be levied for the applicable tax year. If the special tax is to be collected in the same manner as ordinary ad valorem taxes, such official shall deliver the list to the county auditor not later than August 10, or such later date as may be allowed by the county.

B.

Properties or entities of the state, federal, or other local governments shall, except as otherwise provided in Section 4.107.170, 4.107.180 or 4.107.190, be exempt from the special tax. No other properties or entities are exempt from the special tax unless the properties or entities are expressly exempted in the resolution of formation to establish a district adopted pursuant to Section 4.107.300 or in a resolution of consideration to levy a new special tax or special taxes or to alter the rate or method of apportionment of an existing special tax as provided in Section 4.107.430.

C.

The proceeds of any special tax may only be used to pay, in whole or part, the cost of providing facilities, services and incidental expenses pursuant to this law. 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 procedures, sale, and lien priority in case of delinquency as is provided for ad valorem taxes, unless another procedure has been authorized in the resolution of formation establishing the district and adopted by the board. The tax collector may collect the special tax at intervals as specified in the resolution of formation, including intervals different from the intervals at which the ordinary ad valorem property taxes are collected. The tax collector may deduct the reasonable administrative costs incurred in collecting the special tax.

D.

All special taxes levied by a community facilities district shall be secured by the lien imposed pursuant to Section 3115.5 of the Streets and Highways Code of California. This lien shall be a continuing lien and shall secure each levy of special taxes. The lien of the special tax shall continue in force and effect until the special tax obligation is prepaid, permanently satisfied, and canceled, or until the special tax ceases to be levied by the board in the manner provided in Section 4.107.400. If any portion of a parcel is encumbered by a lien pursuant to this law, the entirety of the parcel shall be encumbered by that lien.

(Ord. 6471 § 2 (part), 1992)

The board shall designate an office, department, or bureau of the city which shall be responsible for annually preparing the current roll of special tax levy obligations by assessor's parcel number on nonexempt property within the district and which will be responsible for estimating future special tax levies. The designated office, department, or bureau shall establish procedures to promptly respond to inquiries concerning current and future estimated tax liability. Neither the designated office, department, or bureau, nor the board, shall be liable if any estimate of future tax liability is inaccurate.

(Ord. 6471 § 2 (part), 1992)

Time for commencement—Time for perfection of appeal from final judgment.

Any action or proceeding to attack, review, set aside, void, or annul the levy of a special tax or an increase in a special tax pursuant to this law, or bonded indebtedness authorized to be incurred pursuant to this law shall be commenced within 30 days after the special tax or the bonded indebtedness, as applicable, is approved by the voters. Any appeal from a final judgment in that action or proceeding shall be perfected within 30 days after the entry of judgment.

(Ord. 6471 § 2 (part), 1992)

A.

If a lot, parcel, or unit of a subdivision is subject to a special tax levied pursuant to this law for which a public report is not required pursuant to Article 2 (commencing with Section 11010) of Chapter 1 of Part 2 of Division 4 of the California Business and Professions Code, the subdivider, his or her agent, or representative, shall not sell, or lease for a term exceeding 5 years, the lot, parcel, or unit, or cause it to be sold or leased for a term exceeding 5 years, until the prospective purchaser or lessee of the lot, parcel, or unit has been furnished with and has signed a written notice as provided in this section. The notice shall contain the heading "NOTICE OF SPECIAL TAX" in type no smaller than 8-point type, and shall state the following in clear and simple language:

That the property being purchased is or will be subject to a special tax which is in addition to the property tax and any other applicable local tax or assessment;

The maximum annual amount of the special tax, and the number of years for which it will be levied;

The types of facilities or services to be paid for with the proceeds of the special tax.

B.

"Subdivision," as used in subdivision A of this Section 4.107.600, means improved or unimproved land that is divided or proposed to be divided for the purpose of sale, lease, or financing, whether immediate or future, into 2 or more lots, parcels, or units for residential use and includes a condominium project, as defined by Section 1350, a community apartment project, a stock cooperative, and a limited-equity housing cooperative, as defined in Sections 11004, 11003.2, and 11003.4, respectively, of the California Business and Professions Code.

C.

If any disclosure required to be made by this section is delivered after the execution of an agreement to purchase, the buyer shall have 3 days after delivery in person or 5 days after delivery by deposit in the mail, to terminate his or her agreement by delivery of written notice of that termination to the owner, subdivider, or agent. Any disclosure delivered after the execution of an agreement to purchase shall contain a statement describing the buyer's right, method and time to rescind as prescribed by this subdivision.

D.

The failure to furnish the notice to the buyer or lessee, and failure of the buyer or lessee to sign the notice of a special tax, shall not invalidate any grant, conveyance, lease, or encumbrance.

E.

Any person or entity who willfully violates the provisions of this section shall be liable to the purchaser of a lot or unit which is subject to the provisions of this section for actual damages, and in addition thereto, shall be guilty of a public offense punishable by a fine in an amount not to exceed $500.00. In an action to enforce such liability or fine, the prevailing party shall be awarded reasonable attorney's fees.

(Ord. 6471 § 2 (part), 1992)

For any community facilities district or zone thereof, the board may fix and collect charges in the same manner as for miscellaneous extended services in county service areas.

(Ord. 6471 § 2 (part), 1992)

Any charges collected pursuant to this law may only be used for facilities and services authorized by this law.

(Ord. 6471 § 2 (part), 1992)

In the event that the special tax is permanently satisfied as to a particular parcel of land, the city clerk shall prepare and record in the office of the county recorder of the county in which the parcel of land is located, and the county recorder shall accept for recordation, a notice of cancellation of special tax authorization as to that parcel. The notice of cancellation of special tax authorization shall identify with particularity the special tax being canceled, shall contain the legal description and assessor's parcel number of the particular parcel of land subject to the tax, and shall contain the name of the owner of record of the parcel. The city clerk shall mail the original notice of cancellation of special tax authorization to the owner of the property after recording the document. The city clerk may specify a charge for the preparation and recordation of this notice.

(Ord. 6471 § 2 (part), 1992)

Whenever the board deems it necessary for an existing or proposed community facilities district to incur bonded indebtedness, it shall, by resolution, set forth all of the following:

A.

A declaration of the necessity for the indebtedness;

B.

The purpose for which the proposed debt is to be incurred;

C.

The amount of the proposed debt. The legislative body may provide for a reduction in the amount of proposed debt in compliance with the provisions of Section 4.107.070;

D.

The time and place for a hearing by the board on the proposed debt issue.

(Ord. 6471 § 2 (part), 1992)

The amount of the proposed bonded indebtedness may include all costs and estimated costs incidental to, or connected with, the accomplishment of the purpose for which the proposed debt is to be incurred, including, but not limited to, the estimated costs of construction or acquisition of buildings, or both; acquisition of land, rights-of-way, water, sewer, or other capacity or connection fees; lease payments for school facilities that are relocated, satisfaction of contractual obligations issued pursuant to this law, architectural engineering, inspection, legal, fiscal, and financial consultant fees; environmental review and monitoring costs; bond and other reserve funds; discount fees; interest on any bonds of the district estimated to be due and payable prior to the expiration of 1 year from the date of completion of all of the facilities, not to exceed 5 years; election costs; administrative expenses of the city in administering the district or the levy and collection of the special taxes; and all costs of issuance of the bonds, including, but not limited to, fees for bond counsel, costs of obtaining credit ratings, bond insurance premiums, fees for letters of credit, and other credit enhancements costs, and printing costs.

(Ord. 6471 § 2 (part), 1992)

The city clerk shall publish a notice of the hearing in a newspaper of general circulation circulated within the district. The notice shall state:

A.

The time and place of the hearing;

B.

At that time and place any person interested, including all persons owning property in the district, will be heard upon the proposed debt issue.

(Ord. 6471 § 2 (part), 1992)

At the time and place fixed for the hearing on the resolution declaring the necessity for incurring the bonded indebtedness or at any time and place to which the hearing is adjourned, the board shall proceed with the hearing. Said hearing may be consolidated with the hearing referred to in Section 4.107.250 on the formation of the district. At the hearing any person interested, including persons owning property within the district, may appear and present any matters material to the questions set forth in the resolution declaring the necessity for incurring the bonded indebtedness.

(Ord. 6471 § 2 (part), 1992)

For purpose of financing of, or contributing to the financing of, specified facilities, the board may by resolution designate a portion or portions of the district as 1 or more improvement areas. An area shall be known as "Improvement Area No._____ of Community Facilities District No._____ of the city of Pasadena." After the designation of an improvement area, all proceedings for purposes of a bond election and for the purpose of levying special taxes for payment of the bonds, or for any other change pursuant to Sections 4.107.410 through 4.107.560, shall apply only to the improvement area for those specified facilities.

(Ord. 6471 § 2 (part), 1992)

After the board has held the hearing pursuant to Section 4.107.670, if it deems it necessary to incur the bonded indebtedness, it shall by resolution state all of the following:

A.

That it deems it necessary to incur the bonded indebtedness;

B.

The purpose for which the bonded indebtedness will be incurred;

C.

Either of the following in accordance with its previous determination:

That the whole of the district will pay for the bonded indebtedness,

That a portion of the district will pay for the bonded indebtedness, which portion shall be described in the resolution of the board made pursuant to Section 4.107.680;

D.

The principal amount of debt to be incurred;

E.

The maximum term of the bonds to be issued, which term shall not exceed 50 years;

F.

The maximum annual rate of interest to be paid, payable annually or semiannually, or in part annually and in part semiannually, or in such other manner as shall be provided by the board;

G.

That the proposition will be submitted to the voters;

H.

The date of the special community facilities district election (which may be consolidated with a general or special district election, including an election to levy a special tax) at which time the proposition shall be submitted to the voters;

I.

If the election is not conducted by mail or hand-delivered ballot, the hours between which the polls shall be open;

J.

If the election is conducted by mail or hand-delivered ballot, the hour when the ballots are required to be received in the office of the election officer conducting the election, and that if all qualified electors have voted, the election shall be closed.

(Ord. 6471 § 2 (part), 1992)

The resolution provided for in Section 4.107.690 shall constitute the notice of such special bond election and such resolution shall be published in a newspaper of general circulation circulating within the district, unless such notice has been waived unanimously pursuant to subdivision A of Section 4.107.350 hereof.

(Ord. 6471 § 2 (part), 1992)

Except as otherwise provided in this article, the provisions of the California Elections Code relating to the qualifications of electors, the manner of voting, the duties of election officers, the canvassing of returns, and all other particulars in respect to the management of elections insofar as they may be applicable shall govern all elections pursuant to this article, except that voting shall be conducted in the manner specified in Sections 4.107.350 and 4.107.360 of this law. Propositions relating to the levy of a special tax, incurring of bonded indebtedness, or to establish or change an appropriations limit, or any combination thereof, under this law, may be combined into 1 ballot proposition as determined by the board. The qualified electors for all of these purposes shall be determined and the election shall be conducted in the same manner as for a special tax election pursuant to Section 4.107.350.

If the area designated in the resolution adopted pursuant to Section 4.107.690 does not include the entire community facilities district, a separate ballot shall be prepared for the vote upon the proposition to authorize bonds and to levy a special tax for payment of such bonds and only the voters entitled thereto shall be given such ballots.

(Ord. 6471 § 2 (part), 1992)

If the indebtedness is approved by the voters as required under this chapter, the board may, by resolution, at the time or times it deems proper, provide for the following:

A.

The form of the bonds;

B.

The execution of the bonds;

C.

The issuance of any part of the bonds;

D.

The appointment of 1 or more banks or trust companies within or outside the state having the necessary trust powers as trustee, fiscal agent, paying agent, or bond registrar;

E.

The execution of a fiscal agent agreement, trust agreement or indenture securing the bonds;

F.

The pledge or assignment of any revenues of the community facilities district to the repayment of the bonds;

G.

The investment of any bond proceeds and other revenues, including special tax revenues, by the trustee or fiscal agent in any securities or obligations described in the resolution, fiscal agent agreement, indenture, trust agreement, or other instrument providing for the issuance of the bonds. The resolution may provide for payment to the United States from any available revenues of a community facilities district of any excess investment earnings required to be rebated by federal law;

H.

The date or dates to be borne by the bonds and the time or times of maturity of the bonds and the place or places and time or times that the bonds shall be payable;

I.

The interest, fixed or variable, to be borne by the bonds;

J.

The denominations, form, and registration privileges of the bonds;

K.

Any other terms and conditions determined to be necessary by the board.

(Ord. 6471 § 2 (part), 1992)

The bonds shall be signed by the mayor and countersigned by the city clerk. All signatures on the bonds may be by facsimile and printed, lithographed, or engraved. If any officer whose signature appears on the bonds ceases to be that officer before the delivery of the bonds, his or her signature is as effective as if he or she had remained in office. All bonds shall be payable at the office of the city finance director or at the office of any agent designated by the city.

(Ord. 6471 § 2 (part), 1992)

The city may sell the bonds so authorized at public or private sale, at the times and in the manner the board deems appropriate. However, all bonds sold at public sale shall be sold on sealed proposals after advertising for bids by publication of notice of sale, not less than 5 days prior to the date of sale, in a newspaper of general circulation circulating in the city. If no bids are received or the bids received are not satisfactory as to price or responsibility of the bidders, the board or its designee may reject all bids received, if any, and either readvertise or sell the bonds at private sale.

(Ord. 6471 § 2 (part), 1992)

Any bonds issued by a district organized under the provisions of this law are hereby given the same force, value and use as bonds issued by any municipality and shall be exempt from all taxation within the state.

(Ord. 6471 § 2 (part), 1992)

A.

As a cumulative remedy, if bonds are outstanding, the board may, not later than 4 years after the due date of the last installment of principal thereof, order that any delinquent special taxes levied in whole or in part for payment of the bonds, together with any penalties, interest, and costs, be collected by an action brought in the superior court to foreclose the lien of special tax.

B.

The board may covenant for the benefit of bondowners to commence and diligently pursue to completion any foreclosure action regarding delinquent installments of any amount levied as a special tax for the payment of interest or principal of any bonds that are issued, or may employ a trustee to do so on behalf of the bondholders. The resolution may specify a deadline for commencement of the foreclosure action and any other terms and conditions the legislative body determines reasonable regarding the foreclosure action.

C.

Except as otherwise provided in Section 4.107.800, all special taxes, interest, penalties, costs, fees, and other charges that are delinquent at the time of the ordering of a foreclosure action shall be collection in the action. In the event that a lot or parcel of property has not been sold pursuant to judgment in the foreclosure action at the time that subsequent special taxes become delinquent, the court may include the subsequent special taxes, interest, penalties, costs, fees, and other charges in the judgment or modified judgment.

(Ord. 6471 § 2 (part), 1992)

A.

When any foreclosure actions are ordered, the tax collector shall be credited upon the current tax roll with the amount charged on account of the delinquent special taxes to be sued on, including applicable penalties, interest, and costs, and the tax collector shall be relieved of further duty in regard thereto. Any amounts not the subject of a foreclosure action shall remain collectible by the tax collector.

B.

The tax collector may charge the actual cost incurred in removing these sums from the tax roll. This charge shall be added to the costs to be recovered in the foreclosure action.

(Ord. 6471 § 2 (part), 1992)

At any time after the tax collector has been relived of his or her duty to collect sums under Section 4.107.750 and before judgment in a foreclosure action, the board or trustee shall dismiss the action upon payment of all of the following:

A.

The amount of any delinquent special taxes together with any penalties, interest, and costs accrued thereon to date of complete payment hereunder;

B.

Costs of suit, including, but not limited to, litigation guarantees provided by title companies with respect to all claims of ownership or interest in the subject property;

C.

Attorneys' fees authorized by the local agency;

D.

The tax collector's costs authorized by subsection B of Section 4.107.770.

(Ord. 6471 § 2 (part), 1992)

The foreclosure action shall be brought in the name of the city or trustee on behalf of the bondholders pursuant to Section 4.107.760, and may be brought within the time specified in Section 4.107.760. The complaint may be brief and need only include the following allegations:

A.

That on a stated date, a certain sum of special taxes, levied against the subject property (describing it) pursuant to this law, became delinquent;

B.

On that date, bonds issued pursuant to this law, payable in whole or in part by the subject special taxes, were outstanding (if applicable);

C.

That the board or trustee has ordered the foreclosure.

(Ord. 6471 § 2 (part), 1992)

Any judgment shall decree the amount of the continuing lien against each parcel to be foreclosed, and shall order the parcel to be sold on execution as in other cases of the sale of the real property by process of the court. The judgment amount shall include reasonable attorneys' fees to be fixed by the court, together with interest, penalties, and other authorized charges and costs (all calculated up to date of judgment). The foreclosure action shall be governed and regulated by the provisions of this law, and also where not in conflict with this law, by other provisions of law generally applicable to foreclosure actions. Property sold hereunder may not be sold for less than the amount of the judgment plus postjudgment interest and authorized costs without the consent of the owners of 51% by principal amount of the outstanding bonds.

(Ord. 6471 § 2 (part), 1992)

No special tax installment, interest or penalties thereon, or deed shall be held invalid for any error in computation if the error is found to be comparatively negligible, or is found to be in favor of the owner of the real property affected thereby.

(Ord. 6471 § 2 (part), 1992)

When the board provides for the fixing and levying of special taxes and charges for the community facilities district it shall also provide for the fixing and levying of that amount of special taxes and charges within the community facilities district which is required for the payment of the principal of and interest on any outstanding bonded debt of the community facilities district, including any necessary replenishment or expenditure of bond reserve funds or accumulation of funds for future bond payments, including any amount required by federal law to be rebated to the United States on that bonded debt. The special tax or charge shall be levied and collected by the same officers and at the same time and in the same manner that all other special taxes and charges are levied and collected for the community facilities district or in any other manner specified by the board. The special taxes and charges shall not exceed the authority granted by Sections 4.107.180 through 4.107.630 hereof. All of the collections for payment of principal and interest on bonds shall be paid into the community facilities district bond or similar fund and reserve or other fund for the particular community facilities district and shall be used solely for the payment of the principal of and interest on the outstanding bonds of the community facilities district.

(Ord. 6471 § 2 (part), 1992)

An action to determine the validity of bonds issued pursuant to this law or the validity of any special taxes levied pursuant to this law may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the California Code of Civil Procedure but shall, notwithstanding the time limits specified in Section 860 of the California Code of Civil Procedure, be commenced within 30 days after the voters approve the issuance of the bonds or the special tax if the action is brought by an interested person pursuant to Section 863 of the California Code of Civil Procedures. Any appeal from a judgment in that action or proceeding shall be commenced within 30 days after entry of judgment.

(Ord. 6471 § 2 (part), 1992)

The board may, by resolution, authorize the issuance of new bonds to refund any or all of the district bonds outstanding or improvement area bonds outstanding that have been issued pursuant to this law. The board may issue refunding bonds without repeating any of the procedures required for the approval of the original bond issue, if the board determines that the debt service due in each year on the refunding bonds is not in excess of that due on the bonds being refunded. Subject to such limitation, the principal amount of the refunding bonds may be more than, less than, or the same as the principal amount of the bonds to be refunded. The total authorized amount of the bonded indebtedness of a district or an improvement area therein, as approved by the qualified voters thereof, shall not be reduced by the principal amount of any refunding bonds issued to refund any or all outstanding bonds of the district or improvement area, except to the extent that the principal of the refunding bonds is in excess of the bonds being refunded.

(Ord. 6471 § 2 (part), 1992)

If the board determines to issue refunding bonds pursuant to this article it shall adopt a resolution providing for their issuance. The resolution shall:

A.

Describe the bonds being refunded and state the date on which it is anticipated that the refunding will occur;

B.

Fix the date of the refunding bonds;

C.

Designate the denomination or denominations of the refunding bonds;

D.

Fix the maximum rate or rates of interest to be paid on the refunding bonds;

E.

Fix the maturity dates of the refunding bonds, which may not exceed the latest maturity date of the bonds being refunded;

F.

Designate the place or places of payment of principal and interest on the refunding bonds and on the bonds to be refunded;

G.

Describe the form of the refunding bonds.

(Ord. 6471 § 2 (part), 1992)

The board may sell the refunding bonds at public or private sale. The proceeds of any sale of refunding bonds for cash shall be applied only as permitted by this law.

(Ord. 6471 § 2 (part), 1992)

The proceeds of the refunding bonds and the earnings thereon shall be in an amount sufficient to meet either the requirements of subsections A or B of this Section 4.107.870 at the time of issuance of the refunding bonds, as certified by a certified public accountant licensed to practice in this state.

A.

The proceeds (including any amounts in any reserve fund established for the bonds to be refunded not needed for purposes of the refunding bonds) and investments, together with any interest or other gain to be derived from any such investment, shall be in an amount sufficient to pay the principal, interest, and redemption premiums, if any, on the refunded bonds as they become due or at designated dates prior to maturity and the costs of issuance of the refunding bonds.

B.

The proceeds (including any amounts in any reserve fund established for the bonds to be refunded not needed for purposes of the refunding bonds) and investments, together with any interest or other gain to be derived from any such investment, shall be in an amount sufficient to pay the principal, interest, and redemption premiums, if any, on the refunding bonds prior to the maturity of the bonds to be refunded or prior to a designated date or dates before the maturity of the bonds to be refunded, the principal and any redemption premiums due on the refunded bonds at maturity or upon that designated date or dates, and the costs of issuance of the refunding bonds.

(Ord. 6471 § 2 (part), 1992)

At the time the board makes a determination to issue the refunding bonds, it shall determine the disposition of any savings achieved through the issuance of refunding bonds, by causing to be made reductions in the annual tax in the district, which reduction shall be made on a pro rata basis, or by using funds for authorized facilities or services, or for any other purpose permitted under this law.

(Ord. 6471 § 2 (part), 1992)

Any bonds issued may be made callable in the document providing their terms. When bonds are made callable a statement to that effect shall be set forth on the face of the bonds. Callable bonds may be redeemed on any interest payment date prior to their fixed maturity in the amounts, manner and prices prescribed in the document providing their terms.

(Ord. 6471 § 2 (part), 1992)