THE PRELIMINARILY ESTABLISHING - caltaxfoundation.org

.RESOLUTION NO. 2006 347

A RESOLUTION OF THE COUNCIL OF THE CITY
OF FRESNO OF FORMATION OF COMMUNITY

FACILITIES DISTRICT NO. 12, AUTHORIZING
THE LEVY OF A SPECIAL TAX THEREIN AND

PRELIMINARILY ESTABLISHING AN

APPROPRIATIONS LIMIT THEREON

COMMUNITY FACILITIES DISTRICT NO. 12

fu/'¿ WHEREAS, on June 6, 2006, the Councilof the City of Fresno adopted its Resolution
of Intention to establish a Community Facilities District and to authorize the levy of special
Ån'wd taxes (Resolution of lntention), stating its intention to form the City of Fresno Community
Facilities District No. 12 (Copper River Ranch) ('CFD No. 12"), pursuant to the City of Fresno
€li&þo Special Tax Financing Law ("City Law"), Chapter 22 of the Fresno Municipal Code; and

WHEREAS, the Resolution of lntention, incorporating a map of the proposed

boundaries of CFD No. 12 and stating the services to be provided, the estimated maximum
cost of providing such Services, and the rate and method of apportionment of the special tax
to be levied within CFD No. 12lo pay for the Services (as hereafter defined) with respect to
CFD No. 12,is on file with the City Clerk and the provisions thereof are incorporated herein by
this reference as if fully set forth herein; and

WHEREAS, on this date, this Council held a noticed public hearing as required by City
Law and the Resolution of Intention relative to the proposed formation of CFD No. 12 and all
aspects thereof; and

WHEREAS, at said hearing all interested persons desiring to be heard on all matters
pertaining to the formation of CFD No. 12, the Services to be provided therein and the levy of
said special tax were heard and a full and fair hearing was held; and

WHEREAS, at said hearing evidence was presented to this Council on said matters
before it, including a report by the Public Works Director (District Report) as to the Services to

\couó4'7

Council Resolution No.2006 - 347

Formation of Community Faciliäes District No. 12
Page 2

be provided through CFD No. 12 and the costs thereof, a copy of which is on file with the City
Clerk, and this Council at the conclusion of said hearing is fully advised in the premises; and

WHEREAS, written protests with respect to the formation of CFD No. 12, the furnishing
of specified types of Services and the rate and method of apportionment of the special taxes
have not been filed with the City Clerk by fifty percent (50%) or more of the registered voters
residing within the territory of CFD No. 12 or property owners of one-half (%'l or more of the
area of land within CFD No. 12 and not exempt form the special tax; and

WHEREAS, the special tax proposed to be levied in CFD No. 12 to pay for the

proposed Services to be provided therein, as set forth in Exhibits "A" and "B" hereto, have not
been eliminated by protest by fifty percent (50%) or more of the registered voters residing
within the territory of CFD No. 12 or the owners of one-half (%) or more of the area of land
within CFD No. 12 and not exempt from the special tax.

NOW, THEREFORE, BE IT RESOLVED, BY THE COUNCIL OF THE CITY OF
FRESNO AS FOLLOWS:

1. Recitals. The foregoing recitals are true and correct.
2. No Maioritv Protest. The proposed special taxto be levied within CFD No. 12

has not been precluded by majority protest pursuant to City Law.

3. Prior Proceedinos. All prior proceedings taken bythis Council in connection with

the establishment of CFD No. 12 and the levy of the special tax have been duly considered
and are hereby found and determined to be valid and in conformity with the requirements of

City Law. This Council hereby finds and determines that the proposed formation is in

conformity with the goals and policies heretofore adopted by this Council with respect to the
formation of CFD No. 12.

-Council Resolution No. 2006 347

Formation of Community Facilities District No. 12
Page 3

4. CFD No. 12 Established. The community facilities district designated "City of

Fresno, Community Facilities District No. 12" is hereby established pursuant to City Law.

5. Boundaries Described. The boundaries of CFD No. 12, as set forth in the

boundary map of CFD No. 12 heretofore recorded in the Fresno County Recorder's Office in
Book 41 at page 100 of Maps of Assessment and Community Facilities Districts, are hereby
approved and incorporated herein by reference and shall be the boundary of CFD No. 12.

6. Services. The type of public services proposed to be financed by CFD No. 12

and pursuant to City Law shall consist of those items listed as seruices on Exhibits "4" and "8"
in the report on file with the City Clerk, copies of which are attached hereto and by this
reference incorporated herein (Services).

7. Special Taxes. Except to the extent that funds are othenruise available to CFD

No. 1 2 to pay for the Services, a special tax sufficient to pay the costs thereof, secured by a
continuing lien against all non-exempt real property in CFD No. 12, will be levied annually
within CFD No. 12, and collected in the same manner as ordinary ad valorem property taxes or
in such other manner as this Council or its designee shall determine, including direct billing of
the affected property owners. The proposed rate and method of apportionment of the special
tax among the parcels of real property within CFD No. 12, in sufficient detail to allow each
landowner within CFD No. 12 to estimate the probable maximum amount such ownerwill have
to pay, are described in the report on file with the City Clerk and on attached Exhibit "C" which
is by this reference incorporated herein.

8. Tax Collection Authoritv. The Public Works Director of the City of Fresno 2600

Fresno Street, Fresno, California 93721 telephone number (559) 621-8650 is the officer who

will be responsible for preparing annually a current roll of special tax levy obligations by

-Council Resolution No. 2006 347

Formation of Community Facilities District No. 12
Page 4

assessor's parcel number and which will be responsible for estimating future specialtax levies
pursuant to City Law.

L Tax Lien. Upon recordation of a notice of special tax lien pursuant to Section

3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of

the special tax shall attach to all nonexempt real property in CFD No. 12, and this lien shall

continue in force and effect until the special tax obligation ceases and the lien canceled in

accordance with law or until collection of the tax by the City ceases.

10. Appropriations Limit. ln accordance with City Law, the annual appropriations

limit, as defined by subdivision (h) of Section 8 of Article Xlll B of the California Constitution, of

CFD No. 12,is hereby preliminarily established at $32,000,000.00 and said appropriations limit
shall be submitted to the voters of the proposed annexation as hereafter provided. The
proposition establishing said annualappropriations limit shall become effective if approved by
the qualified electors voting thereon and shall be adjusted in accordance with the applicable

provisions of City Law.

.11 Election. Pursuant to the provisions of City Law, the proposition of the levy of the

specialtax and the proposition of the establishment of the appropriations limit specified above

shall be submitted to the qualified electors of the proposed annexation at an election the time,

place and conditions of which election shall be as specified by a separate resolution of this

Council.

Attachments:
1 . Exhibit A - Description of Services for CFD No. 12
3. Exhibit B - Description of Incidental Expenses
4. Exhibit C - Rate and Method of Apportionment

Council Resolution No. 2006 - 347

Formation of Community Facilities District No. 12
Page 5

CLERK'S CERTIFICATION

STATE OF CALIFORNTA )
couNTY oF FRESNO
)
crTY oF FRESNO )

l, REBECCA E. KLISCH, City Clerk of the City of Fresno, certify that the foregoing

1¡s of JulvResolution was

thereof, held on
adopted18byththedaCyouncil of the City of Fresno, California, at a regular meeting
, 2006.

AYES: Boyajian, Calhoun, Dages, Sterling, trüesterlund, Duncan

NOES: None

ABSTAIN: None

ABSENT: Perea

REBECCA E. KLISCH
City Clerk

APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE

BY:
ty

EXHIBIT "A''

CITY OF FRESNO

Gommunity Facilities District No. 12 (Copper River Ranch)
Formation

Description of Services to be Financed by Community Facilities District No. 12

L Services may include all costs attributable to maintaining, servicing, cleaning,

repairing and/or replacing all facilities, including hardscaping, in landscaped areas
(may include reserves for replacement) in public street rights-of-way, public
landscape easements, public trail areas, parkways, and other similar landscaped
areas officially dedicated for public use.

General maintenance will include, without limitation, mowing, edging, fertilizing,
seeding, aerating, and watering grass areas; repairing and replacing irrigation
systems as necessary; staking, pruning, replacing and spraying of trees and
shrubs; repairing and replacing paths, walkways and trails; removing litter, debris,
and garbage.

ll. Services may include all costs attributable to cleaning, maintaining, servicing,

repairing and/or replacing all local ground level street infrastructure (may include
reserves for replacement) within local street rights-of-way. Such facilities may
include, without limitation, entry treatments, stamped concrete paving, curbs and
gutters, sidewalks, street lighting, hydrants, inlets, street trees and street furniture.

lll. Services may include costs attributable to street lighting and recreational services.

Maintenance costs will also include a proportionate share of all other expenses that the
City may incur in administering the CFD No. 12.

All Services shall be provided by the City of Fresno, with its own forces or by
contract with third parties, or landowner(s)/agents thereof or any combination
thereof, to be determined entirely by the Gity of Fresno.

Nothing in this Exhibit B or any other exhibit or provision of this Resolution shall be
construed as committing the City or CFD No. 12 to provide all of the authorized Services
or to provide for the payment of or reimbursement for all of the authorized incidental
expenses. The provision of Services and/or payment or reimbursement of incidental
expenses shall be subject to the successful formation of CFD No. 12 and the availability
of sufficient proceeds of special taxes within the District.

EXHIBIT "B''

CITY OF FRESNO
COMMUNITY FACILITIES DISTRICT NO. 12

INCTDENTAIJ EXPENSES

It is antícípat,ed that the following categories of
incidental expenses may be incurred in the proposed lega1
proceedings for formation of CFD No. 12 and implementation of the
authorized Services from time to time, and will be payable directly
from the proceeds of the special tax. Certain of these expenses
are expected to be recurring and may be included in each annual-
special tax 1er4¡.

Engineering, architectural, environmental and related
miscellaneous consultíng services.
Survey, staking and contract administration services.
Permits, plan check fees, entitlement processing fees

and expenses.

Special tax consultant services.
City staff review, oversight and administrative
services.
Special tax administrator services.
Publishing, mailing and posÈing of notices.

Recording fees.
Other necessary consultant services incidental_ to

the administration of the Dístrict.
Posting, collecting and enforcing payment of the

special taxes,
including but not limited to foreclosure attorneys,
services.
Personnel and administrative services provided by City

personnel.

The foregoing enumeration shal1 not be regarded as exclusive and
shall be deemed to ínclude any other incidental expenses of a
like nature which may be incurred from time to time with respect
to CFD No. 1-2 and the Services.

E)GIIBIT C

CITY OF FRESNO
CoMMI-INITY FACILTTIES DTSTRTCT NO. 12 (COppER Rr\iER RANCH)

RATE ANIDMETHOD OF APPORTIONMENT

A Special Tax of Community Facfities District No. 12 (C.opper River Ranch) of the Gty of Fresno
(the "CFD") shall be levied on all Assessor's Parcels in the CFD and collected each Fiscal Year

commencing in Fiscal Year 2006-07 n an amount determined through the application of the rate

and method of apportionment of the Special Tax set forth below. All of the real properry in the
CFD, unless exempted by law or by the provisions hereof, shall be taxed for the purpóses, to the

extent and in the manner herein provided.

A. DEFINITIONS

The terms hereinafter set forth have the following meanings:

"Ac1€" or "Acr€age" means the land area of. an Assessot's Parcel as shown on an

Assessor's Parcel l\{a,p, or if the land area is not shown on an Assessor's Parcel Map, the land
area shown on the applicable Final Subdivision l\{a,p, other final map, other pãrcel map,

other condominium plan, or ftmctionally equivalent rnap or instrument recorded in the
Office of the C-out ty Recorder. The square footage of an Assessor's Parcel is equal to the

Acreage multþlied by 43,560.

'' Act" means the Mello-Roos C.ommunityFacilities Act of 1982, as amended, being Chapter
2.5,Pan 1, Division 2 of Tfule 5 of the Govemment Code of the State of Glifomia.

"Adminisüative Expenses" means the actual or estimated costs incurred by the Gry,
acting for and on behalf of the CFD as the administrator thereof, to determine, levy and
collect the Special Taxes, including salaries of Gtyemplopes and a proportionate amount of
the Grys general administrative overhead related thereto, and the fees of consultants and

legal counsel providing services related to the formation and administr:ation of the CFD; the
costs of collecting installments of the Special Taxes; and any other costs required to form or
administerthe CFD as determinedbythe Gty.

"Assessods Parcel" means a lot or parcel shown in an Assessor's Parcel lvlap with an

assigned assessor's parcel number.

" Assesso/s Parcel Map" means an official map of the Assessor of the County designating

parcels by assessor's parcel number.

" Assigned Special Tax" means the annual special ta>r for Developed Property described in

Table L in Section Cbelow.

" Backup Special Tax" means the Special Tæ< of that name described in Section D below.

City of Fresno Iune 2, 2006
CFD No. 12 (Copper RÍver Ranch)
IPøge

" CFD Administato/' means an official of the Gry, or designee thereof, responsible for

determining the Special Tax Requirement and providing for the levy and collection of the

Special Taxes.

u CFD" or " CFD No. 12" means Community Facilities District No. 12 (Copper River

Ranch) of the Gtyof Fresno.

" Ci*y' means the Gryof Fresno.

" City Cler{<" means the GtyClerkforthe Gryof Fresno or his or her designee.

" City Managef' means the Grylv{anager for the Gtyof Fresno or his or her designee.

" City C-ode" meens the Municipal C-ode of the Gry of Fresno, specifically clnpter 22

regarding special tax districts.

" C-ouncil" means th. Gry Council of the Gry of Fresno, acting as the legislative body of

the CFD.

" C-ounQr" means the Countyof Fresno, C¿lifomia.

" Developed Propefty" means all Taxable Property for which a building permit is issued
after January L, 2006, but prior to the April 1st preceding the Fiscal Year in which the

Special Tax is being levied

" Final Map" means a subdivision of properq' evidenced by the recordation of a final map,

parcel rnap, or lot line adjustment, pußuant to the Subdivision lv{a.p Act (Califomia
Govemment Code Section 66410 et seq) or the recordation of a condominium plan
pn$uant to Glifomia Gvil Code 1352 rhar creates individual lots for which Building

Permits maybe issued without further subdivision.

" Final Subdivision Map" means a subdivision of propery creating buildable lots by

recordation of a final subdivision map or parcel map puruuant to the Subdivision tríap Act
(Califomia Government C-ode Section664tO et seq), or recordation of a condominium plan

pursuant to Califomia Gvil Code 1352, that creates individual lots for which building
permits may be issued q¡ithout further subdivision and is recorded prior to lvfarch 1

preceding the Fiscal Year in which the Special Tær is being levied.

" Fiscal Yeaf' means the period starting Aptil 1 and ending on the following Iv{arch 31.

"Land Use Class" means anyof the classes described in Section B and, forDeveloped

Property, the clæses listed in Table 1.

" Maintenance C-ost" means the labor, material, administration, peßonnel, equipment and

utilities necessary to maintain landscaped improvements within the public right-of-wap,

parkways, slopes, parking lots, wetlands and other public easements/improvemenu

throughout the CFD.

City of Fresno June 2,2006
Page 2
CFD No. 12 (Copper Rìver Ranch)

"Maintenance C-ost Requircment" means, for anyFiscalYear in which Special Taxes are
levied, the amotmt equal to the budgeted costs for lvlaintenance Cost applicabb to CFD No.
t2 for such Fiscal Year.

" Lot" means an individual legal lot created by a Final lvlap, identified by an Assessor's

Parcel Number, for which a Building Permit could be issued.

"Maximum Special Tax" means the maximum Special Ta><, determined in accordance
*ywith Section C below, that may be levied ir
Fiscal Year on any fusessoy's Parcel of

Taxable Property.

" Multi'Family Residential Propefty" means all fusessofs Parcels which a building
permit has b9_en issued for pu¡poses of constructing a residential srrucure consisting of wõ
or more residential dwelling units that share common walls, including, but not limited to,

duplexes, triplexes, townhomes, condominiums, and apartment unis.

"Non'Residential Property" meâns all fusessofs Parcels of Developed Properqr for

which a building permitþ) has been issued for a structure or structures fõr non-rèsidential

use.

" O¡lerating Fund" means a fund that shall be maintained forthe CFD for each Fiscal Year
to payfor tr¡Iaintenance C.ost and Administrative Expenses.

"Operating Fund Requircment" means, for any Fiscal Year, the sum of the applicable

I\{a,intenanc e C-ost Re quire me nt.

"PropertyOwnerfusociationPropeÉy" means anyptoperrywithinthe botmdaries of the

CED that is owned b¡ or irrevocably dedicated as indicated in an instrument recorded with
the Clunty Recorder to, a propert)¡ owner association, including any mâster or sub-

association.

" Proportionately" means in a manner such that the ratio of the actual Special Ta>< levy to
the l\{aximum Special Tax is equal for all Assessors Parcels of Tærable Propertywithin éach

Land IJse Class.

" Public Property" means arry properry within the boundaries of the CFD that has

provided proof to the Gty prior to the ì¡Iarch lst preceding the Fiscal Year in which the
Special Tax is being levied, that it is expected to be used for any public purpose and is
owned by or dedicated to the federal government, the State, the Counry, th. Gry or any

other public âgency.

" Resele Fund" means a fund that shall be maintained for the CFD for each Fiscal Year to
provide necessary cash flow for the fint six months of each Fiscal Year, reserve capital to
cover monitoring, maintenance and repair cost overruns and delinquencies in the payment of

Special Taxes and a reasonable buffer to prevent latge vanations in annual Special Tax levies.

" Reselve Fund Requircment" means an emount equal to up to 10Oo/o of the Operating

Fund Requirement for anyFiscal Year.

CÍty of Fresno June 2,2006
Page 3
CFD No. 12 (Copper Ríver Ranch)

"Residential Dwelling Unit' or "Llnit" means each separate residential dwelling unit
which comprises an independent facility capable of conveyance sepaftrte from adjacent

residential units, including but not limfued to, single-family homes, duplexes, triplexes,

townhomes, condominiums, and apartment units.

" Residential Property" means all Assessor's Parcels of Developed Propery for which a
building permitþ) has been issued for purposes of constructing one or more Residential
Dwelling Units. Residential Propertf includes Single Family Residential Properry and Mult-

Family Re s idential Prope rty.

" Single Family Residential Property" means all Assesson' Parcels for v¡hich a building
peynrt(s) has been issued for pqposes of constructing one single-family residential dwelling

urut.

" Special Tax" means the Special Talr levied pursr¡ant to the provisions of Sections C and D

below in each Fiscal Year on each Assessor's Parcel of Developed Propeny and

Undeveloped Propertyto frurd the Special Tax Requiremenr.

" Special Tax Requirement" means that amount required in anyFiscal Year ro: (r) (Ð p"y
the l\{a,intenance C-ost Requirement; (if payreæonable Administrative Expenses; (üi) payany

amounts required to establish or replenish the Resen¡e Fund to the Reserve Fund

Requirement (iv) cure any delinqæncies in the paynent of Special Tæ<es levied in prior Fiscal Yean

or (based on delinquencies in the payment of Special Tæres v¿hich have already taken place) are

expected to occur in the Fiscal Year in v¡hich the tor will be collected.; less þ) a credit for firnds
available to reduce the annual Special Tax levy, including the excess, iÍ any, in the Reserve

Fund above the Reserve Fund Requirement.

" Square Foot" means the square footage as shown on an fusessor's Parcel's building

permit of Residential Prope4y, excluding gamges or other structures not used as living space.

" State" means the State of C¿lifornia.

" Taxable Property" means all of the Assessor's Parcels within the boundaries of the CFD
that are not exempt from the Special Tax pursuant to law or æ defined below under "Tax-

Exempt Property''.

"Tax-Exempt Prcperty" means an Assessor's Parcel not subject to the Special Tax. Tax-

Exempt Property includes: (f Public Property, or (if Property Owner fusociation Property
excluding Taxable Properq' Ov¡ner fusociation Property, or (rÐ Assessor s Parcels with

public or utilfuy easements making impractical their utilization for other than the purposes
set forth in the easement.

" Taxable Property Owner Association Property" means all fusociation Property uzhich
is not exempt from the Special Ta>r punuant to Section F below.

" I-Indeveloped Property" means, for each Fiscal Year, all Taxable Property not classified

as Developed Properry.

Cíty of Fresno June 2, 2006
Pøge 4
CFD No, 12 (Copper River Rønch)

B. ASSIGNMENT TO LANID USE CATEC.ORIES

Each Fiscal Year using the definitions above, all Taxable Properq' within the CFD shall be
classified as Developed Property, or Undeveloped Properq', ând shall be subject to Special

ed Properyshall be classified as Single
Properq', or Non-Residential Property.
e further assþed to a Land Use Class

C. MÆilMUM SPECIAL TÆ(RATE

1. Developed Property

Parcel of Residential Property that is

shall be the amount determined by the

Tax in Table 1 or (ü) the application of
cial Tax for each Assessods Parcel of Non-
lop.d Property in any Fiscal Year shall be the

Assþned Special Tax in Table 1.

TABLE 1
fusigned Special Tax forDeveloped Prcperty

C-ommunity Facilities District No. 12

Fiscal Year2006-07

Land Description Assigned Special

Use Single Family Residential Tax
Class Propern'
$414 per Lot
1 Multi Family Res idential $179 per Unit
Properw
2 $3,843 per Acre
Non-Residential
3 Properw

Multþle I¿nd Use Classes

In some instances an Assessols Parcel of Developed Property may contâin more

than one Land Use Clæs. The l\{aximum Special Tax that maybe levied on such an
Assessoy's Parcel shall be the sum of the lvlaximum Special Tax levies that may be

levied on all Land Use Clæses located on that fusessor's Parcel. The CFD

Administrator shall determine the allocation to each Land Use C,læs.

2. Undeveloped Property

The l¡Iaximum Special Tax for each Assessoy's Parcel that is classified as Undeveloped

Propercyin anyFiscal Year shall be $3,843 per acre.

City of Fresno June 2,2006
CFD No. 12 (Copper River Rønch) Page 5

3. Annual Escalation of Maximum Special Tax

The l\{aximum Special Tax as shown in Sections C1 and C2 above that maybe levied on each
Assessor s Parcel shall be increased each Fiscal Year beginrring in Fiscal Year 2OO7-08 and thereafter
by 3 percent plus any increase in the construction cost index fõr the San Francisco Region for the

prigr l]-ponth period as published in the Engineering News Record, orpublished inã comparable

index if the Engineering News Record is discontinued or otherwise not available. Each annual
adjustment of the l\{a.ximum Special Tax shall become effective on the subsequent April 1.

D. BACKUP SPECIAL TÆ(

When a Final lvf"p i, recorded the Baclnrp Special Tax for Residential Properry and

Undeveloped Properq'shall be determined as specified below.

Each Fiscal Year, each Assessoy's Parcel of Residential Propertyor Undeveloped Properryto

be classified as Residential Property upon its development s¡ithin a Final l[ap shall be-the

I¡trate per calculated according to the following formula:

RxA
B - --------

L

The terms above have the following meanings:

B : Backup Special Tax for per Lot in each Fiscal Year
R : Maximum Special Tax rate per Acre for Undeveloped
Property for the applicable Fiscal Year
A:
Acreage classified or to be classified as Residential
L:
Property in such Final Map.

Lots in the Final Map which are classified or to be
classified as Residential Property.

Notwithst¿nding the foregoing, if all or alny portion of the Final lv[ap(s) described in rhe
preceding paragraph is subsequently changed or modified, then the Backup Special Tax for
each Assessoy's Parcel of Developed Property classified or to be classifi-ed as Residential

Property in such Final lvlap area thar. is changed or modified shall be a nrte per square foot
of Acreage calculated as follows:

1. Determine the total Baclrup Special Tax anticipated to apply to the changed or modified
Final lMap area pnorto the change or modification.

The result of paragraph 1 above shall be divided by the Acreage of Developed Property
classified or to be classified as Residential Properry which is ultimately expected to exist in

such changed or modified Final lvlap area,as reasonablydetermined bythe Gty.

CiE of Fresno June 2, 2006
CFD No, 12 (Copper River Ranch) Page 6

3. The result of paragraph 2 above shall be divided by 43,560. The result is the Backup Special
Tax per square foot of Acreage which shall be applicable to Assessor's Parcels of Developed
Properq' classified as Residential Property in such changed or modified Final ]zIap area for
all remaining Fiscal Years in which the Special Tax maybe levied.

METHOD OF APPORTIONMENT OF THE SPECIAL TA)(

Commencing with Fiscal Year 2006-07, and for each following Fiscal Year, the Council shall
levy the Special Tax at the rates established punuant to steps 1 through 3 below so that the
amount of the Special Tax levied equals the Special Tax Requirement. The Special Tæ< shall
be levied each Fiscal Year as follows:

Fint The Special Tax shall be levied proportionately on each .Assessofs Parcel of

Developed Properrtr up to 100o/o of the applicable lvlaximum Special Tax;

Second: If additional monies are needed to satisfy the Special Tæ< Requirement after the
fint step has been completed, the Special Tor shall be levied Proportionately on each

Assessor's Parcel of Undeveloped Properry at up to 100o/o of the lvlaximum Special Tax for

Undeveloped Properqq

Third: If additional moneys are needed to satisfythe Special Tax Requirement after the fint

two steps has been completed, the Special Tax shall be levied propoltionately on each
Assessor's Parcel of Taxable Property Ovmer Association Property at up to lOOo/o of the

applicable l\{aximum Special Tax for Taxable Property Oumer Association Properry.

No¡withsønding the above, under no circumstânces will the Special Tax levied against any
Assessods Parcel of Property for which an occupancy permit for private residential use has
been issued be increased bymore than ten percent annuallyup to the lUaximum Special Tax

as a consequence of delinquency or defauh by the owner of any other Assessor's Parcel

within the CFD.

F. E)(EMPTIONS

The CFD Administrator shall classify as exempt property (f Assessor's Parcels defined as
Public Property, (if Assessofs Parcels with public or utilfuy easements -aLirg impractical

their utilization for other than the purposes set fonh in the easement.

The CFD Administrator shall classifyas exempt propert)¡those Assessofs Parcels defined as
Properq' Oumer's Association Property provided that no such classification would reduce

the sum of all Tæ<able Prope4y to less than 324 Acres. Assessofs Parcels defined as

Property Ovmer fusociation Property that cannot be classified as exempt propery will be
classified as Taxable Properq' Ov¡rer Association Property and shall be taxed as part of the
third step in Section E.

The CFD Administrator will assign tÐGexempt stâtus in the chronological order in v¡hich
propercy becomes Public Property or Tæ<-Exempt Property Oumer Association Propercy.
Flowever, should an Assesso/s Parcel no longer be classified æ Public Property or Tær-
Exempt Property Ovmer Association Property, its tax-exempt stan¡s will be revoked.

Cþ of Fresno June 2,2006
Page 7
CFD No. 12 (Copper Ríver Ranch)

Tar¿ble Properqy Ovmer fusociation Property that itshenoStpeexcieaml -pTtafxroamndthsehaSll-pebceiatlaTneadx

under this section shall be subject to the levy of

Proponionately as pan of the third step in Section E above, at up ro lOOo/o of the applicable

lvlaximum Special Tax for Undeveloped Property.

G. MANNEROF COLLECTION

Special Taxes levied punuant to Section E above shall be collected in the same manner and

at the same time as ordinary dd r¿loelnproperty taxes; provided, however, that the CFD
Administrator may directþbill the Special Tax, may collect Special Taxes at a different time

or in a different nìanner if necessary to meet the financial oblþations of the CFD or as

othem'ise determined appropriate by the CFD Adminis tnrtor.

TERM OF SPECIAL TÆ(

Taxable Property in the CFD shall remain subject to the Special Tær in perpetuity or until rhe
Gty Council takes appropriate actions to terminate the Special Tax pursuant to the Act.

Cìty of Fresno June 2,2006
CFD No. 12 (Copper River Ranch)
IPage