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HomeMy WebLinkAboutRES 2006-61RESOLUTION NO. 2006--61 A RESOLUTION OF CITY COUNCIL OF THE CITY OF DIAMOND BAR DECLARING ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2006-1 OF THE CITY OF DIAMOND BAR (DIAMOND BAR LIBRARY), AND TO SUBMIT TO THE VOTERS THE AUTHORIZATION OF THE LEVY OF SPECIAL TAXES TO PAY THE COSTS OF ACQUIRING, CONSTRUCTING AND MAINTAINING A MUNICIPAL LIBRARY AND TO FINANCE EXPENSES OF THE DISTRICT AND TO PAY DEBT SERVICE ON BONDED INDEBTEDNESS WHEREAS, the City Council of the City (the "City Council") desires to adopt this resolution of intention as provided in Section 53321 of the Government Code of the State of Califomia to establish a community facilities district consisting of all of the territory located within the boundaries of the City of Diamond Bar (the "City') described in Attachment "A" hereto and incorporated herein by this reference, which the City Council hereby determines shall be known as "Community Facilities District No. 2006-1 of the City of Diamond Bar (Diamond Bar Library)" (the "Community Facilities District No. 2006-1" or the "District') pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the Government Code (the "Act'), to (1) finance the purchase, construction, modification, expansion, improvement or rehabilitation of certain public facilities, consisting of a municipal library, as described in Attachment "B" hereto and incorporated herein by this reference, including all furnishings, equipment and supplies related thereto (collectively, the "Facilities"), which Facilities have a useful life of five years or longer, (2) finance library services described in Attachment "D" hereto and incorporated herein by this reference (the "Services"), (3) finance the incidental expenses to be incurred in connection with forming and administering the District and financing the Facilities (the "Facilities Incidental Expenses"), and (4) finance the incidental expenses to be incurred in connection with forming and administering the District and financing the Services (the "Services Incidental Expenses" and, together with the Facilities Incidental Expenses, the "Incidental Expenses"); and WHEREAS, the City Council further intends to approve an estimate of the costs of the Facilities, the Services and the Incidental Expenses for Community Facilities District No. 2006-1; and WHEREAS, it is the intention of the City Council to consider financing the Facilities and Facilities Incidental Expenses through the formation of Community Facilities District No. 2006-1 and the sale of bonded indebtedness in an amount not to exceed $13,100,000 and the levy of a special tax within Community Facilities District No. 2006-1 to pay for the Facilities and the Facilities Incidental Expenses and to pay 4 2046-61 debt service on the bonded indebtedness incurred by Community Facilities District No. 2006-1, provided that the bond sale and special tax levy are approved at elections to be held within the boundaries of Community Facilities District No. 2006-1; and WHEREAS, it is also the intention of the City Council to consider financing the Services and the Services Incidental Expenses through the formation of Community Facilities District No. 2006-1 and the levy of a special tax to pay for such Services and Services Incidental Expenses; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DIAMOND BAR HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS: SECTION 1. The above recitals are true and correct. SECTION 2. A community facilities district is proposed to be established under the terms of the Act. It is further proposed that the boundaries of the community facilities district shall be the territorial boundaries of the City of Diamond Bar as further described in Attachment "A" hereto, which boundaries shall, upon recordation of the boundary map for the District, include the entirety of any parcel subject to taxation by the District, and as depicted on the map of the proposed Community Facilities District No. 2006-1 which is on file with the City Clerk. The City Clerk is hereby directed to sign the original map of the District and record it with all proper endorsements thereon with the County Recorder of the County of Los Angeles within 15 days after the adoption of this resolution, all as required by Section 3111 of the Streets and Highways Code of the State of California. SECTION 3. The name of the proposed community facilities district shall be "Community Facilities District No. 2006-1 of the City of Diamond Bar (Diamond Bar Library)." SECTION 4. The Facilities proposed to be provided within Community Facilities District No. 2006-1 and to be financed by Community Facilities District No. 2006-1 are public facilities as defined in the Act, which the City is authorized by law to construct, acquire, own and operate. The Services proposed to be provided for the benefit of Community Facilities District No. 2006-1 are public services as defined in the Act, and this City Council finds and determines that the Services to be financed are in addition to those provided in the territory of the District at the present time and will enhance services already available within the territory of the District at the present time. The City Council hereby finds and determines that the description of the Facilities and the Services herein is sufficiently informative to allow taxpayers within the proposed District to understand what the funds of the District may be used to finance. The Incidental Expenses expected to be incurred include the cost of planning and designing the Facilities and Services, the costs of forming the District, issuing bonds and levying and collecting a special tax within the District and the cost of administration. All or a portion of the Facilities may be purchased with District funds as completed public facilities pursuant to Section 53314.9 of the Act and/or constructed 2006--61 with District funds pursuant to Section 53316.2 of the Act. Any portion of the Facilities may be financed through a lease or lease -purchase arrangement if the District hereafter determines that such arrangement is of benefit to the District. SECTION 5. Except where funds are otherwise available, it is the intention of the City Council to levy annually in accordance with the procedures contained in the Act a special tax within the District, secured by recordation of a continuing lien against all nonexempt real property in the District, sufficient to pay for: (i) the Facilities; (ii) the Services; (iii) the Incidental Expenses; and (iv) the principal and interest and other periodic costs on bonds or other indebtedness issued to finance the Facilities and the Facilities Incidental Expenses, including the establishment and replenishment of any reserve funds deemed necessary by the District, and any remarketing, credit enhancement and liquidity facility fees (including such fees for instruments which serve as the basis of a reserve fund in lieu of cash). The rate and method of apportionment and manner of collection of the special taxes within the District are described in detail in Attachment "C attached hereto, which Attachment "C is incorporated herein by this reference. Attachment "C" allows each landowner within the District to estimate the maximum amount that may be levied against each parcel. If special taxes of the District are levied against any parcel used for private residential purposes, (i) the maximum special tax rate shall not be increased over time; provided, however, the special taxes for Services may be increased based on the annual percentage change in the consumer price index to the extent permitted in the rate and method, (fi) the special tax for Facilities shall be levied for a period so long as bonds are outstanding, which shall not exceed 31 years from the date of issuance of the bonds or such series of bonds; provided that the special tax for Facilities may be levied until Fiscal Year 2046-47, as further described in Attachment "C" hereto, in order to collect delinquent special taxes required to pay debt service on bonds, (iii) the special tax for Services may be levied in perpetuity or for such period as the Services are needed, as further described in Attachment "C" "hereto, and (iv) under no circumstances will such special tax be increased with respect to residential property as a consequence of delinquency or default by the owner of any other parcel or parcels within the District by more than ten percent. The special taxes within the proposed District are based on the expected demand that each parcel of real property within the proposed District will place on the Facilities and the Services and on the benefit that each parcel derives from the right to access the Facilities and from the Services. The City Council hereby determines the rate and method of apportionment of the special taxes set forth in Attachment "C" to be reasonable. The special tax within the proposed District is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act, and such special tax is not based upon the value or ownership of real property. In the event that a portion of the property within the proposed District shall become for any reason exempt, wholly or partially, from the levy of the special tax specified on Attachment "C," as the case may be, the City Council shall, on behalf of Community Facilities District No. 2006-1, cause the levy to be increased, subject to the limitation of the maximum special tax for a parcel as set forth in Attachment "C", to the extent necessary upon the remaining property M 2006--61 within the proposed District which is not exempt in order to yield the special tax revenues required for the purposes described in this Section 5. The obligation to pay the special tax within the proposed District may not be prepaid. SECTION 6. A public hearing (the "Hearing") on the establishment of the proposed Community Facilities District No. 2006-1, the proposed rate and method of apportionment of the special tax, the proposed issuance of bonds to finance the Facilities and the Facilities Incidental Expenses and the Services and the Services Incidental Expenses shall be held at 7:090 p.m., or as soon thereafter as practicable, on August 1, 2006, at AQMD Government Center Auditorium, 21865 Copley Drive, Diamond Bar, California. Should the City Council determine to form the District, a special election will be held to authorize the issuance of the bonds and the levy of the special tax in accordance with the procedures contained in Government Code Section 53326. If held, the proposed voting procedure at the elections will be a registered voter election with each registered voter within the proposed District having one vote. Ballots for the special election may be distributed by mail or by personal service. SECTION 7. The City Council does not intend to make any adjustment in property taxation pursuant to Sections 53313.6 and 53313.7 of the Act. SECTION 8. At the time and place set forth above for the Hearing, any interested person, including all persons owning lands or registered to vote within proposed Community Facilities District No. 2006-1, may appear and be heard. SECTION 9. Each City officer who is or will be responsible for administering the proposed Community Facilities District No. 2006-1, if it is established, is hereby directed to study the proposed District and, at or before the time of the above-mentioned Hearing, file a report with the City Council containing a brief description of (i) the public facilities and services by type which will in his or her opinion be required to meet adequately the needs of Community Facilities District No. 2006-1 and an estimate of the cost of providing those public facilities and services, including the cost of environmental evaluations of such facilities, and (ii) an estimate of the fair and reasonable cost of any Incidental Expenses to be incurred. SECTION 10. The District may accept advances of funds or work -in-kind from any source, including, but not limited to, private persons or private entities, for any authorized purpose, including, but not limited to, paying any cost incurred in creating Community Facilities District No. 2006-1. The District 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 City Council, with or without interest. SECTION 11. The City Clerk is hereby directed to publish a notice (the "Notice") of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of proposed Community Facilities District No. 2006-1. The Notice shall contain the text or a summary of this 2006--61 1 1 Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners in the proposed district and a description of the proposed voting procedure for the election required by the Act. Such publication shall be completed at least seven (7) days prior to the date of the Hearing. SECTION 12. The reasonably expected maximum principal amount of the bonded indebtedness to be incurred by the District is $13,100,000. SECTION 13. Except to the extent limited in any bond resolution or trust indenture related to the issuance of bonds, the City Council hereby reserves to itself all rights and powers set forth in Section 53344.1 of the Act (relating to tenders in full or partial payment). SECTION 14. This Resolution shall be effective upon its adoption. PASSED, APPROVED AND ADOPTED this 3a day of , 2006 1�444� Mayor LINDA C. LOWRY I, Tvmmye-Cribbhs, City Clerk of the City of Diamond Bar, California do hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of Diamond Bar, California, at its regular meeting held on the &' `—day of , 2006, by the following vote: AYES: COUNCIL MEMBERS: Chang, Tanaka, Tye, MPT/Zirbes M/Herrera NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ABSTAINED: COUNCIL MEMBERS: None , ")CACYAQ� r ge-Grftirtt City -Clerk LINDA C. LOWRY 2006-61 ATTACHMENT A Proposed Boundaries Community Facilities District No. 2006-1 City of Diamond Bar (Diamond Bar Library), Los Angeles County, California THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF LOS ANGELES, AND IS DESCRIBED AS FOLLOWS: All land located within the territorial limits of the City of Diamond Bar, as set forth in the map entitled "Proposed City of Diamond Bar," as modified by the Local Agency Formation Commission on August 24, 1988, which map is on file with the Local Agency Formation Commission. A-1 2006-61 1 ATTACHMENT B Types of Facilities to Be Financed by Community Facilities District No. 2006.1 City of Diamond Bar (Diamond Bar Library), Los Angeles County, California The proposed public facilities and expenses to be financed by the District include the purchase, construction, modification, expansion, improvement or rehabilitation of a municipal library, including all furnishings, equipment and supplies related thereto, and together with all appurtenant work in connection therewith, provided that such facilities have a useful life of five years or longer. Facilities Incidental Expenses: Incidental expenses proposed to be incurred include the following: (a) the cost of planning and designing the proposed public facilities to be financed, including the cost of environmental evaluations of those facilities; (b) any other expenses incidental to the construction, completion and inspection of the authorized work; and (c) the costs associated with the formation 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. IN 2006--62 ATTACHMENT C RATE AND METHOD OF APPORTIONMENT FOR COMMUNITY FACILITIES DISTRICT NO. 2006-1 OF THE CITY OF DIAMOND BAR (DIAMOND BAR LIBRARY) Special Taxes as hereinafter defined shall be levied on and collected for Community Facilities District No. 2006-1 of the City of Diamond Bar (Diamond Bar Library) ("CFD No. 2006-1") each Fiscal Year commencing in Fiscal Year 2007-2008, in an amount determined by the City Council of the City of Diamond Bar through the application of the Special Tax for Developed Property as described below. All of the real property in CFD No. 2006-1, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Act" means the Mello -Roos Communities Facilities Act of 1982 as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses,means any actual ordinary and necessary expense of the City of Diamond Bar, or designee thereof or both, to carry out the administration of CFD No. 2006-1 related to the determination of the amount of the levy of the Special Tax, the collection of the Special Tax including the expenses of collecting delinquencies, the administration of Bonds, the payment of a proportional share of salaries and benefits of any City employee whose duties are directly related to the administration of CFD No. 2006-1, fees and expenses for counsel, audits, or other amounts needed to pay rebate to the federal government with respect to the Bonds, costs related to complying with continuing disclosure requirements, costs associated with responding to public inquiries regarding CFD No. 2006-1 or the Bonds, and costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2006-1. "Assessor's Parcel" means a lot or parcel of land designated on an Assessor's Parcel Map with an assigned Assessor's parcel number within the boundaries of CFD No. 2006-1. "Assessor'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 Tax as described in Section C below. "Base Year" means Fiscal Year ending June 30, 2007. C-1 2006--61 "Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, notes, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which the Special Tax has been pledged. "Boundary Map" means the map of the boundaries for CFD No. 2006-1, as approved by the City Council, and recorded with the County in its maps of assessment and community facilities districts. "Building Permit" means a permit for new construction for a residential dwelling or non-residential structure. For purposes of this definition, "Building Permit" shall not include permits for construction or installation of retaining walls, utility improvements, or other such improvements not intended for human habitation. "Calendar Year" means the period commencing January 1 of any year and ending the following December 31, "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD No. 2006-1" means Community Facilities District No. 2006-1 of the City of Diamond Bar (Diamond Bar Library) established by the City under the Act. "City" means the City of Diamond Bar. "City Council" means the City Council of the City, acting as the legislative body of CFD No. 2006-1, or its designee. "Commercial Property" means all Assessors' Parcels of Developed Property within CFD No. 2006-1 for which a Building Permit has been issued for purposes of constructing one or more commercial units, excluding Industrial Property. "Consumer Price Index" means the index published by the U.S. Department of Labor, Bureau of Labor Statistics for all urban consumers in the Los Angeles - Riverside -Orange County area. "County" means the County of Los Angeles. "Developed Property' means all Assessor's Parcels within CFD No. 2006-1 for which Building Permits were issued on or before March 1 preceding the Fiscal Year for which Special Taxes are being levied, provided that a Final Map was created on or before January 1 of the prior Fiscal Year and that each such Assessor's Parcel is associated with a Lot, as determined reasonably by the City. "Exempt Property" means all Assessor's Parcels within CFD No. 2006-1 designated as being exempt from the Special Tax as determined in Section F. C-2 2006-61 "Facilities" means those public facilities and associated incidental expenses authorized to be funded by CFD No. 2006-1 as set forth in the formation documents for CFD No. 2006-1. "Facilities Special Tax" means the portion of the Special Tax authorized to be levied by CFD No. 2006-1 pursuant to the Act to fund Facilities. "Final Map" means a subdivision of property evidenced by the recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or the recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots for which Building Permits may be issued without further subdivision, or any other similar recorded final map for Non -Residential Properties. "Fiscal Year" means the period commencing on July 1 of any year and ending the following June 30. "Indenture" means the indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. "Industrial Property" means all Assessors' Parcels of Developed Property within CFD No. 2006-1 for which a Building Permit has been issued for purposes of constructing an industrial use property, as classified by the Building Permit, Final Map, County's secured roll, or other recorded document approved by the City. "Land Use Type" means any of the land use types listed in Table 1 below. "Library Services" means the estimated and reasonable costs of providing library services including but not limited to (i) the salaries and benefits of library staff, (ii) maintenance and operation of the library, including, electricity, water, landscaping, and other direct costs, and (iii) materials, equipment, and other real or tangible property. "Lot" means an individual legal lot created by a Final Map for which a Building Permit could be or has been issued for the development of a Residential Property or Non -Residential Property. "Multi -Family Residential" means all Assessor's Parcels of Developed Property for which a building permit has been issued for a residential structure consisting of two or more residential units that share common walls, including, but not limited to, duplexes, triplexes, townhomes, condominiums, and apartment units. Assessor's Parcels classified by the County as mobile home parks will be levied the Special Tax, where each mobile home equals one Unit. "Non -Residential Property" means all Assessors' Parcels of Developed Property for which a Building Permit was issued for any type of non-residential use. C-3 2006-61 "Proportionately" means, for Developed Property, the ratio of the actual Special Tax levied to the Assigned Special Tax is equal for all Assessor's Parcels of Developed Property. "Public Property" means any property within the boundaries of CFD No. 2006-1 that is owned by or irrecoverably dedicated to the City, the federal government, the State of California, the County, CFD No. 2006-1, or other public agency. "Residential Property" means all Assessors' Parcels of Developed Property within CFD No. 2006-1 for which a Building Permit has been issued for purposes of constructing one or more residential dwelling units. "Single -Family Residential" means all Assessors' Parcels of Developed Property within CFD No. 2006-1 for which a Building Permit has been issued for purposes of constructing one residential dwelling unit. "Services Special Tax" means the portion of the Special Tax authorized to be levied by CFD No. 2006-1 pursuant to the Act to fund Library Services; provided, however, that in the event of a shortfall in the Special Tax Requirement, the proceeds from the levy of the Services Special Tax may be used to pay debt service on or periodic costs of all outstanding Bonds. "Special Tax" means the sum of the Facilities Special Tax and the Services Special Tax authorized to be levied by CFD No. 2006-1 pursuant to the Act to fund the Special Tax Requirement. "Special Tax Requirement" means the amount required in any Fiscal Year for CFD No. 2006-1 to fund: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses associated with the Special Tax, (iii) any amount required to establish or replenish any reserve funds established in association with the Bonds, (iv) pay directly for acquisition and/or construction of Facilities which are authorized to be financed by CFD No. 2006-1, (v) the budgeted costs of the Library Services to be levied by CFD No. 2006-1 up to $500,000 for the Base Year, which will be subject to the annual change in the Consumer Price Index for each subsequent Fiscal Year, and (vi) any delinquencies in the payment of principal or interest on Bonds which have occurred in the prior Fiscal Year or, based on existing delinquencies in the payment of Special Taxes, are expected to occur in the Fiscal Year in which the tax will be collected, less (vii) any amount available to pay debt service or other periodic costs on the Bonds pursuant to the Indenture. "Trustee" means the trustee, fiscal agent, or paying agent under the Indenture. "Undeveloped Property" means all Assessors' Parcels within CFD No. 2006-1 not classified as Developed Property, which would be classified as Developed Property upon a Building Permit being issued. "Unit" means any residence in which a person or persons may live, including mobile homes, and is not considered to be for non-residential use. C-4 2006-61 B. CLASSIFICATION OF ASSESSOR'S PARCELS Each Fiscal Year, beginning with Fiscal Year 2007-2008, each Assessor's Parcel within CFD No. 2006-1 shall be classified as Developed Property or Exempt Property. In addition, each Fiscal Year, beginning with Fiscal Year 2007-2008, each Assessor's Parcel of Developed Property shall further be classified as Single -Family Residential, Multi -Family Residential, Commercial Property, or Industrial Property. C. ASSIGNED SPECIAL TAX Each Fiscal Year commencing in Fiscal Year 2007-2008, each Assessor's Parcel of Developed Property within CFD No. 2006-1 shall be subject to an Assigned Special Tax. The Assigned Special Taxes for each Land Use Type of Developed Property for Fiscal Year 2007-2008 are shown in Table 1. TABLE 1 ASSIGNED SPECIAL TAX RATES Fiscal Year 2007-2008 Tax Facilities Services Assigned Class Land Use Type Special Tax Special Tax Special Tax 1 Single -Family $61.20 per Unit $27.80 per Unit $89.00 per Unit Residential 2 Multi -Family $44.50 per Unit $20.30 per Unit $64.80 per Unit Residential 3 Commercial Property $55.30 per Parcel $25.20 per Parcel $80.50 per parcel 4 Industrial Property $41.20 per Parcel $18.80 per $60.00 per Parcel Parcel For each subsequent Fiscal Year, following the Base Year, the Services Special Tax for each Assessor's Parcel classified as Developed Property shall be adjusted by the annual percentage change in the Consumer Price Index reported in March of the prior Fiscal Year. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing Fiscal Year 2007-2008 and for each subsequent Fiscal Year until terminated, the City Council shall levy the Special Tax on all Developed Property within CFD No. 2006-1 until the total amount of the Special Tax levied equals the Special Tax Requirement in accordance with the following: The Special Tax shall be levied Developed Property within CFD No Special Tax for such Fiscal Year. Proportionately on each Assessor's Parcel of . 2006-1 up to 100% of the applicable Assigned C-5 2006-61 Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel of Developed Property classified as Residential Property be increased by more than ten percent (10%) as a consequence of delinquency or default by the owner of any other Assessor's Parcel within CFD No. 2006-1. E. TERMINATION OF SPECIAL TAXES 1. Facilities Special Tax For each Fiscal Year that any Bonds are outstanding, the Facilities Special Tax shall be levied on all Assessor's Parcels in CFD No. 2006-1 subject to the Facilities Special Tax. If any delinquencies for the Facilities Special Tax remain uncollected prior to or after all Bonds are retired, the Facilities Special Tax may be levied to the extent necessary to reimburse CFD No. 2006-1 for uncollected Facilities Special Tax obligations, but not later than the Fiscal Year 2046-2047, at which time foreclosure proceedings will commence to collect any remaining delinquent Facilities Special Tax obligations. 2. Services Special Tax The Services Special Tax shall be levied in perpetuity to finance the Library Services. F. EXEMPTIONS The City shall classify as Exempt Property: (i) Public Property, (ii) Assessor's Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor's Parcels used exclusively by a homeowners' association, (iv) Undeveloped Property, (v) Assessor's Parcels with public or utility easements making impractical their utilization for other purposes than those set forth in the easement, or (vi) Assessor's Parcels for which the entirety of such Assessor's Parcel is not located within the boundaries of CFD No. 2006-1 G. APPEALS Any property owner claiming that the amount or application of the Special Tax is not correct may file a written notice of appeal with the City Council not later than twelve months after having paid the first installment of the Special Tax that is disputed. A representative(s) of CFD No. 2006-1 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the representative's decision requires that the Special Tax for an Assessor's Parcel be modified or changed in favor of the property owner, a cash refund shall not be made (except for the last year of levy), but an adjustment shall be made to the Special Tax on that Assessor's Parcel in the subsequent Fiscal Year(s). C -b 2006-61 H. MANNER OF COLLECTION The annual Special Taxes shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2006-1 may collect the Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor's Parcels as permitted by the Act. C-7 2006--61 1 Stradling Yocca Carlson & Rauth Draft of 6/23/06 ATTACHMENT D Types of Services to be Financed by Community Facilities District No. 2006-1 of the City of Diamond Bar (Diamond Bar Library) The proposed Services include: 1. to finance library services, including, but not limited to: (a) salaries and benefits of library staff, and (b) maintenance and operation of the library, including, but not limited to, electricity, water, landscaping and other direct costs; (c) materials, equipment and other real or tangible property; and (d) maintenance of library collection materials; 2. to finance the Services Incidental Expenses to be incurred, including: (a) the cost of planning the Services, and (b) all costs associated with the creation of the District, the determination of the amount of special taxes to be levied, costs otherwise incurred in order to carry out the authorized purposes of the District, the cost of levying the special tax and the cost incurred in administering the District. 2006--61