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HomeMy WebLinkAbout1990-461 1 2 3 4 0/,1 - E(tt / RESOLUTION NO. RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH THE SAN BERNARDINO CITY UNIFIED SCHOOL DISTRICT, COMMUNITY FACILITIES DISTRICT NO. 995 AND MCCLELLAN DEVELOPMENT, A CALIFORNIA CORPORATION IN CONNECTION WITH THE MITIGATION OF SCHOOL FEES. BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN 5 BERNARDINO AS FOLLOWS: 6 SECTION 1. The Mayor is hereby authorized and directed to execute 7 on behalf of said City an Agreement for School Fee Mitigation with the City 8 Unified School District and McClellan Development. a California corporation 9 on behalf of Community Facilities District No. 995, a copy of which is 10 attached hereto marked Exhibit "A," and incorporated herein by reference as 11 fully as though set forth at length. 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 SECTION 2. This resolution is rescinded if the parties to the Agreement for Mitigation of School Fees is not executed within sixty (60) days of the passage of this resolution. III III III III III III III III III III I I I 28 0-22-90 ~lt"'I;1' I , .r I , ~--- RESU!XTIO, AUTHOIUZING EXEiTTlO\ OF AGREPIENT WITH SCHOOL DISTInCT & hXLELLM DEVELOPMENT '. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 I HEREBY CERTIFY that the foregoing resolution was duly adopted by the ~:dYOr and Common Council of the City of San Bernardino at a ~~_ meeting thereof, held on the ..1911c day of ~&~1990, by the following vote, to wit: ~_o.un_c.i I rjember"-'--__.___~n~ ESTRADA ~ / REILLY 1,-/ -._---- FLORES ~ MAUDSLEY --~' MINOR V -- POPE-LUDLAM /' --- MILLER _L NAYS ABSTAIN Qc:<-1v.Ji.... J~~~~~ 'City Clerk ,1 L/t~~ 1990, The foregoing resolution is hereby approved this __~ !~_. day of " Approved as to form and legal content: JAMES F. PENMAN, City Attorney ~ ' .._--._-~- 10-22-90 /' 'u~f/.. .~Olc;m~MaYOr City of San Bernardino 2 SCHOOL FEE MITIGATIOH AGREEMENT 1. PARTIES AND DATE TH~ SCHOQL FEE MITIGATION AGREEMENT is made and entered into this ~/sf day ofJ'(n7~/~. 1990, by and among the San Bernardino City Unified School District (hereinafter the "Oistrict"), a school district organized and existing under the laws of the State of California (the "State"), COMMUNITY FACILITIES DISTRICT NO. 995 (VERDEMONT AREA) (the "CFD"), a community facilities district organized and existing under the Act (as hereinafter defined) and MCCLELLAN DEVELOPMENT C-' 'If, a California corporation (the "Landowner") which owns property or is representing the owner of property within the boundaries of the CFD: ~ 2. RECITALS 2.1 The Landowner is the owner or representative of the owner of the undeveloped property described in Exhibit "A" hereto (the "Property") situated within the boundaries of the CFD which the Landowner proposes to develop for various land uses; and 2.2 The City of San Bernardino (the "City") has undertaken proceedings to form the CFD pursuant to the Mello-Roos Community fAcilities Act of 1982, as amended (the "Act") to fund certain public facilities and to pay certain fees necessary to and for the benefit of the development of the Property, including payment of certain fees to the District: and 2.3 The District and the Landowner have agreed upon the payment of certain fees from the proceeds of bonds proposed to be issued by the CFD in full satisfaction of the Landowner's obligation with respect to the impact of the development of the Property on school facilities of the District which are represented by the fees described in this Agreement. NOW, THEREFORE. in consideration of the mutual covenants contained herein, the District, the CFD, and the Landowner do hereby agree as follows: 3. TERMS AND CORDITIOHS 3.1 Definitions "Act" means the Mello-Roos Community Facilities Act of 1982, as amended. set forth at Title 5 (commencing with Section 53311), Division 2, Chapter 2.5 of the Government Code of the State. "Bonds" means the bonds of the CFD proposed to be issued to fund certain fees and public facilities necessary for the development of the Property. "Developments" means the development projects to be constructed by Landowner on the Property as described in Exhibit C, the impact of which on the need for school facilities is to be mitigated by this Agreement. "Fees" means those schools listed in Exhibit "B" hereto and those fees which are normally charged by the District to a landowner pursuant to eZC:HI8JT A. Government Code Sections 53080 or 65995 upon recordation of final subdivision map or application for a building permit for development of property within the District. "Mayor and Conunon Council" means the Mayor and Common Council of the City. 3.2 Satisfaction of Obliqation The District agrees that facilities capacity created by the Fees contemplated to be paid from the proceeds of bonds proposed to be issued by the CFD as contemplated by this Agreement will satisfy all school facility requirements for the Developments to be constructed by Landowner. By the payment of the Fees in the amounts and under the terms and conditions described in Exhibit "B" hereto, the Landowner, and its respective successors and assigns, shall be deemed to have fulfilled and satisfied its entire obligation to assist in financing school facilities to serve the student population to be generated by development of the Property with the Developments. As a result. the District and the CFD hereby each covenant that each of them will not under any circumstances at any time: (a) exercise any power or authority (under Section 53080 of the California Government Code or any other provision of applicable law) to levy a fee, charge dedication, or other form of requirement against the Developments undertaken on the Property for the purpose of funding or financing any school facilities to serve the Developments; provided, however, that this subsection (a) shall not exempt the Property from the levying of ad valorem real property taxes or from liability for future general obligation bonds or other taxes levied pursuant to a vote of the electors residing therein. (b) require the County of San Bernardino (the "County"), or any other governmental entity, in the exercise, of, the power under Title 7, Division 1, Chapter 4.7 of the California Government Code (conunencing with Section 65970) or any other provision of applicable law, to require the dedication of land, the payment of fees in lieu thereof, or both, for classroom or related facilities for elementary, middle or high schools as a condition to the approval of the Developments on the Property; provided, however, thet this subsection (b) shall not exempt the Property from the levying of ad valorem real property taxes or from liability for future general obligation bonds or other taxes levied pursuant to a vote of the electors residing therein. (c) Oppose construction of the Developments on the Property on the basis of inadequate school facilities or seek other forms of mitigation with respect to the adequacy of school facilities to serve the Developments, including, but not limited to, the establishment of developer fees, the payment of money by the Landowner, the dedication of land, or the application of an assessment or requirement of any nature against the Landowner or the Property permitted by present or future State of California laws. rulings, regulations and court decisions if the proceeds of such assessment or requirement will be used to finance or fund any school facilities to serve 2 386lm5 &)C:HII,311 A the Developments; provided however, that this subsection (c) shall not exempt the Property from the levying of ad valorem real property taxes or from liability for future general obligation bonds or other taxes levied pursuant to a vote of the electors residing therein. 3.3 Use of Proceeds by School District. The School District agrees that the funds from the proceeds of bonds to be issued by the crD shall be used for school facilities and school site acquisition within the Verdemont area as approved by the Office of Local Assistance, which such facilities and site acquisition are of benefit to the land and development projects charged for repayment of said bonds. 4. MISCELLANEOUS 4.1 Successors All of the covenants. stipulations, promises, and agreements contained in this Agreement by or on behalf of, or for the benefit of. any of the parties hereto, shall bind or insure to the benefit of the successors of the respective parties. 4.2 Amendment This Agreement shall be amended only by a written instrument executed by the parties hereto or their successors. 4.3 Severabilitv If any provision of this Agreement shall be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining portions hereof shall not in any way be affected or impaired thereby. 4.4 Entire Aareement This Agreement supersedes and cancels any and all other agreements, either oral or written. between the parties with respect to the subject matter herein. Each party to this Agreement acknowledges that no representation by any party which is not embodied herein or in any other agreement, statement, or promise not contained in this Agreement shall be valid and binding. The parties hereto agree to act in a manner which will not frustrate the purposes of this Agreement. 4.5 Governinq Law This Agreement shall be governed by and construed in accordance with the laws of the State of California. 4.6 Execution This Agreement may be executed in several counterparts each of which shall be an original and all of which shall constitute but one and the same agreement. 4.7 Attachments: The following exhibits are attached to this Agreement and incorporated herein by reference: Exhibit A - Legal Description of Property Exhibit B - Description of Facilities Exhibit C - Description of Developments by Landowner Exhibit D - Special Tax Rate and Method of Apportionment 3 3861m5 ~)(H 1I3J I A IN WItNESS WHEREOF, the parties hereto have executed this School Fee Mitigation Agreement on the day and year first above written. SAN BERNARDrNO CITY UNIFIED SCHOOL DISTRICT By: (Yf6~1:' ~ President of the Board of Education ATTEST: COMMUNITY FACrLITI 995 (VERDEMONT A A) ity of S Bernardino, Ex Off cio th Legislative Body of Community Facilities District No. 995 (Verdemont Area) ATTEST: BY:~N.R.. iJ~.v~ Clerk of the City of San , Bernardino, Ex Officio the Legisl&ti~e Body of Community Facilities District No. 995 (Verdemont Area) LANDOWNER: VERDEMONT DEVELOPMENT COMPANY, a California general partnership By: PALM PARTNERS, a California general partnership, ~ General Partner By: MCCLELLAN DEVELOPMENT ~, ~n. Managing General By: Phil ip C. Maynard Its: Chi@.f Fxec.\1tivp OffiC'PT' 4 386lm5 ex 1-/-11,3 II A EXHIBIT A LEGAL DESCRIPTION Lots 1 thru 70, inclusive, of Tract 13307 recorded in Book 234, pages 67-69, official records of San Bernardino County, State of California. Lots 1 through 45, inclusive, of Tract 13530 as shown by map recorded in Book 230, pages 43 and 44 of Tract Maps, in the County of San Bernardino, State of California. E'l<H-I@JT A EXHIBIT B No. of Units 115 Fee per unit $3,542.50 Total Mitiqation Fee $407,387.50 'l?x~I~1 T" A 1- EXHIBIT C The property is being developed with 115 single-family detached residential units. i?x~18'T A t<;XHIHITD RATE AND METHOD OF APPORTIONMENT FOR COMMUNITY FACIUTIES DISTRICT NO. 1990-1 OF THE CITY OF SAN BERNARDINO (VERDEMONT AREA) A Special Tax (the "Special Tax") shall be levied on and collected from each parcel in Community Facilities District No. 1990-1 in each Fiscal Year, commencing July 1, 1990, in an amount determined by the City Council of the City of San Bernardino through the application of the appropriate Special Tax for "Developed Property" and "Undeveloped Property" in Special Tax Area A. Special Tax Area S, Special Tax Area C and Special T~ Area D, as described below. All of the property in the District, 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. ~ The terms hereinafter set forth have the following meanings: "Act" means the Mello-Roos Community Facilities Act of 1982, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. "As.iped Special Tax" means the Special Tax for each Land Use Qass, as determined by reference to Table I of Section C below. "Attached" means Developed Property which contains a structure or structures, made of two or- more units that share common walls. "R..ohp Special Tax" means an amount equal to $.168 per square foot of Assessor's Parcel for Special Tax Area A. $0.163 per square foot of Assesesor's Parcel for Special Tax Area B. $0.162 per square foot of Assessor's Parcel for Special Tax Area C and SO.155 per square foot of Assessor's Parcel for Special Tax Area D applicable to each parcel of Taxable Property within each Special Tax Area in Fiscal Year 1990- 91. "City" means the City of San Bernardino. "CoUDciI" means the City Council of the City of San Bernardino. 1 GXI+I13IT A "Developed Property" means all Taxable Property in Area A as of July 1 of any year for which a foundation building permit has been issued as of Match 1 of the prior Fiscal Year, but not prior to March 1, 1990. "District" means Community Facilities District No. 1990-1 of the City of San Bernardino. "Facilities" means any improvements or facilities designated by the Council with an estimated useful life of five years or longer which are eligible for financing under the provisions of the Act. "Fiscal Year' means the period starting July 1 and ending the following June 30. "land Use Class" means any of the categories listed in Table I of Section C below to which a parcel is assigned consistent with the provisions hereof. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C, that can be levied by the Council in any Fiscal Year for each class of Developed Property and for Undeveloped Property, as applicable. "Special Tax" means the Special Tax for each Land Use Qass, determined in ~ accordance with Section C below, that can be levied by the Council in any Fiscal Year. "Special Tax Requirement", means each Special Tax Area's prorata share (as descnbed in the Public Report for the District), to be determined annually by the Council, of the authorized costs and expenses of the District including those necessary to administer the bonds, collect and administer the Special Taxes, and administer the District, to pay current debt service on the bonds, to accumulate funds for future debt service, to pay amounts delinquent on the bonds, to replenish the reserve fund to its proper level (including payments to be made from the reserve fund based upon past Special Tax delinquencies), to compensate for anticipated Special Tax delinquencies (based upon past delinquency experience), to pay directly for Facilities or to accumulate funds for that purpose, and to pay for all authorized services. "Taxable Property" means all of the Assessor's Parcels within the boundaries of Area A which are not exempt from the Special Tax pursuant to law or Section E below. "Undeftloped Property" means all Taxable Property in Area A not classified as Developed Property. B. On July 1 of each year, all Taxable Property within each Special Tax Area shall be categorized either as Developed or Undeveloped Property, and shall be subject to tax in accordance with the rate and method of apportionment determined pursuant to Sections C and D below. 2 E)<HtBIT A For purposes of determining the applicable Maximum Special Tax pursuant to Section 'c, and depending on its land use, D~veloped Property shall be assigned to one of the classes designated in Table I below. The square footage of a Commercia1lIndustrial building shall be computed from the gross square footage for the building(s) as reflected in the building plans upon which the building permit(s) for such parcel was issued. The acreage of a Commercialllndustrial parcel shall be determined by reference to the then current Assessor's Parcel Map and, if appropriate, to the most current parcel map or other subdivision tract map recorded with the Office of the Recorder for San Bernardino County. C. MAXIMUM SPECIAL TAX RATE 1. Developed Property The Maximum Special Tax for an Assessor's Parcel classified as Developed Property shall be the greater of (i) the amount derived by multiplying the square footage of such Assessor's Parcel times the Backup Special Tax or (ii) the Assigned Special Tax determined by reference to Tables I-IV below. For purposes of this Section C, the acreage or square footage of an Assessor'l. parcel shall be determined by reference to the then current Assessor's Parcel Map and, if appropriate, to the most current parcel map or other subdivision tract map recorded with the Office of the Recorder for Orange County. Notwithstanding the above, for Attached Residential Developed Property, a ponion of the acreage in a recorded tract map shall be taxed as Undeveloped Property if building permits for one or more, but not all, of the units in the approved condominium or site plan for that map have been issued. The acreage in a recorded tract map to be taxed as Undeveloped Property shall equal the proportion of the associated condominium or site plan's approved units for which building permits have n!2! been issued, multiplied by the total acreage within that tract map. Notwithstanding Section E below, for purposes of computing the Backup Special Tax for Attached Residential Developed Property, the acreage or sq~e footage of land area shall be completed from the underlying parcel as indicated on the most recent Assessor's Parcel Map or final subdivision tract map. Each residential unit shall be assigned an equal percentage of the underlying assessor's parcel or lot. In making the computations set forth in this Section C (1) and in determining the Maximum Special Tax which may be levied in any Fiscal Year, on July I, 1991 and on each July 1 thereafter, the Backup Special Tax and the Assigned Special Tax for each class set forth in Table I shall be increased by an amount equal to 2.0% of the amount in effect for the previous Fiscal Year. 3 l?XHIfl,IT A TABLE I SPECIAL TAX AREA A Assigned Special Taxes on Developed Property in Special Tax Area A (Fiscal Year 1990-91) Per Unit (Residential) and Per Acre (Commercial/Industrial) Assigned Special Land Use Tax (Fiscal Class Desc:riDtion Sauare Foot8ll!e Year 1990-91) 1 Single Family Detached 2,200 SF and above $1,694 per unit 2 Single Family Detached 1,800 - 2,199 SF $1,540 per unit - 3 Single Family Detached < 1,800 SF $1,309 per unit 4 Attached Not Applicable $7,318 per acre 5 Commercia1/lndustrial Not Applicable $7,318 per acre The Maximum Special Tax may exceed the Assigned Special Tax for some Assessor's Parcels within each class if the Backup Special Tax alternative is used (SO.168 per square foot of Assessor's Parcel). As set forth in Section D below, the Backup Special Tax will only be employed as the Special Tax of last resort if the Council determines that the Backup Special Tax must in fact be levied. The Backup Special Tax mu only be applied to Single Family Detached lots larger than the following minimum sizes: Oass 1: Oass 2: Oass 3: 10,083 square feet 9,166 square feet 7,791 square feet 4 \::;'xtf101 T A TABLE n SPECIAL TAX AREA B Assigned Special Taxes on Developed Property in Special Tax Area B (Fiscal Year 1990-91) Per Unit (Residential) and Per Acre (CommerciaVIndustrial) Assigned Special Land Use Tax (Fiscal Class DescriDtion Souare Foota2e Year 1990-91) 1 Single Family Detached 2,200 SF and above $1,378 per unit 2 Single Family Detached 1,800 - 2,199 SF $1,252 per unit Single Family Detached < 1,800 SF $1,065 ~ 3 per unit 4 Attached Not Applicable $7,100 per acre 5 CommerciallIndustrial Not Applicable $7,100 per acre The Maximum Special Tax may exceed the Assigned Special Tax for some Assessor's Parcels within each class if the Backup Special Tax alternative is used ($0.163 per square foot of Assessor's Parcel). As set fonh in Section D below, the Backup Special Tax will only be employed as the Special Tax of last reson if the Council determines that the Backup Special Tax must in fact be levied. The Backup Special Tax mBI only be applied to Single Family Detached lots larger than the following minimum sizes: Oass I: Oass 2: Oass 3: 8,453 square feet 7,680- square feet 6,533 square feet 5 e-xHJ!3/ T A TABLE ill SPECIAL TAX AREA C Assigned Special Taxes on Developed Property in Special Tax Area C (Fiscal Year 1990-91) Per Unit (Residential) and Per Acre (Commercial/lndustrial) Assigned Special Land U Ie Tax (Fiscal Class DescriDtion Souare Footan Year 1990-91) 1 Single Family Detached 2,200 SF and above S1,527 per unit 2 Single Family Detached 1,800 - 2,199 SF S1,388 per unit Single Family Detached < 1,800 SF S1,18O per unit - 3 4 Attached Not Applicable S7,057 per acre 5 Commercial/Industrial Not Applicable S7,057 per acre The Maximum Special Tax may exceed the Assigned Special Tax for some Assessor's Parcels within each class if the Baclcup Special Tax alternative is used (SO.162 per square foot of Assessor's Parcel). As set fonh in Section D below, the Baclcup Special Tax will only be employed as the Special Tax of last resort if the Council determines that the Baclcup Special Tax must in fact be levied. The Baclcup Special Tax mu only be applied to Single Family Detached lots larger than the following minimum sizes: Class 1: Class 2: Class 3: 9,425 square feet 8,567 square feet 7,283 square feet 6 Ex+fll3/ T A TABLE IV SPECIAL TAX AREA I) Assigned Special Taxes on Developed Property in Special Tax Area D (Fiscal Year 1990-91) Per Unit (Residential) and Per Acre (Commercial/Industrial) Assigned Special Land Use Tax (Fiscal Class Description Sauare Foot8l!e Year 1990-91) 1 Single Family Detached 2,200 SF and above $1,336 per unit 2 Single Family Detached 1,800 . 2,199 SF $1,214 per unit 3 Single Family Detached < 1,800 SF $1,032 per unit 4 Attached Not Applicable $6,752 per acre 5 CommerciallIndustrial Not Applicable $6, 752 per acre ~ The Maximum Special Tax may exceed the Assigned Special Tax for some Assessor's Parcels within each class if the Backup Special Tax alternative is used ($0.155 per square foot of Assessor's Parcd). As set forth in Section D below, the Backup Special Tax will only be employed as the Special Tax of last resort if the Council determines that the Backup Special Tax must in fact be levied. The Backup Special Tax nw: only be applied to Single Family Detached lots larger than the following minimum sizes: Oass 1: Oass 2: Oass 3: 8,619 square feet 7,832 square feet 6,658 square feet 2. Undeftloped Property The 1990-91 Maximum Special Tax for Undeveloped Property shall be $7,300 per acre for Special Tax Area A. $7,100 per acre for Special Tax Area B, $8,300 per acre for Special Tax Area C and $7,900 per acre for Special Tax Area D. In making the computation set fonh in Section C (2) and in determining the Assigned Special Tax and the Maximum Special Tax on Undeveloped Property which may be levied in any Fiscal Year, on July 1, 1991 and on any July 1 thereafter, the Assigned Special Tax and the Maximum Special Tax for Undeveloped Property shall be increased by an amount DO greater than 2.0% of the amount in effect for the previous Fiscal Year. 7 EXf-tl!3IT A D. METIIOD OF APPORTIONMENT OF THE SPECIAL TAX TO DEVELOPED PROPERTY AND UNDEVELOPED PROPERTY . Starting in Fiscal Year 1990-91 and for each following Fiscal Year, the Council shall determine the amount of money to be collected from Taxable Property in each Special Tax Area in the Fiscal Year (the Special Tax Requirement). The Council shall levy the Special Tax as follows until the amount of the levy equals the Special Tax Requirement: First: The Special Tax shall be levied on Developed Property, exclusive of property exempt from Special Taxes pursuant to Section E below, in equal percentages up to 100% of the Assigned Special Tax Rate for each class of Developed Property for such Fiscal Year determined by reference to Tables I-IV; Second: If additional monies are needed after the first step has been completed, the Special Tax shall be levied on each parcel of Undeveloped Property, exclusive of Undeveloped Property exempted by law or by the provisions of Section E, (below), in equal percentages (up to 100%) of the Maximum Special Tax; Third: If additional monies are needed after the first two steps have been completed... then the levy of the Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is determined through the application of the Backup Special Tax Rate shall be increased in equal percentages from the Assigned Special_ Tax Rate up to the Maximum Special Tax Rate for each such Assessor's Parcel for such Fiscal Year; Fourth: If additional monies are needed after the first three steps have been completed, then the Special Tax shall be levied proportionately on each parcel of Developed or Undeveloped Property owned by a homeowners' association which has not been exempted from the Special Tax punuant to Section E, up to the Maximum Special Tax for Undeveloped Property; and Fifth: If additional monies are needed after the first four steps have been completed, then the Special Tax shall be levied proportionately on each parcel of Developed or Undeveloped Property conveyed or irrevocably offered to a public agency which has not been exempted from the Special Tax pursuant to Section E, up to the Maximum Special Tax for Undeveloped Property. E.~ A Special Tax shall not be imposed on up to 66.48 acres of Undeveloped Property conveyed or irrevocably offered to a public agency or conveyed to a homeowners' association (9.55 acres for Special Tax Area A. 17.47 acres for Special Tax Area S, 20.0 acres for Special Tax Area C and 9.46 acres for Special Tax Area D). The acres exceeding such total of acres shall be taxed consistent with Undeveloped Property to the extent set forth in the Fourth and Fifth Steps of Section D above. Under no circumstances shall the Council impose a Special Tax on land which is a public right of way or which is a utility property utilized for the provision of services to the public 8 exl+'~JT A or a property ,.encumbered with public or utility easemenu making impractical its utilizatidn for other than the purposes set fonh in the easement. F. ~/APPEAL COMMITIEE The Council shall establish as part of the proceedings and administration of the District a special three-member Review/Appeal Council. Any landowner or resident who feels that the amount of the Special Tax, as to their parcel, is in error may file a notice with the Review/Appeal Council appealing the amount of the Special Tax levied on such parcel. The Review/Appeal Committee shall interpret this Rate and Method of Apponionment of the Special Tax and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals. as herein specified. The decision of the Review/Appeal Committee shall be final and binding as to all persons. G. MANNER OF COLLECTION The special taxes will be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that the district may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations. In the event of a delinquency, Community Facilities District No. 1990-1 will pursue foreclosure in a timely manner. t?xI-JIBI T A