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VI. RATE AND METHOD OF APPORTIONMENT OF THE SPECIAL TAX All of the property located within CFD No. 2006-1, unless exempted by law or by the Rate and Method of Apportionment for each improvement area, shall be taxed for the purpose of providing necessary facilities to serve CFD No. 2006-1. Pursuant to Section 32-30 of the Code, "there is no requirement that the special tax imposed pursuant to this chapter be fixed in amount or apportioned on the basis of special benefit to any property. It shall be sufficient that the Council determines that the property subject to the special tax is improved or benefited in a general manner or in any other manner." As shown in Exhibit A, the adopted Rate and Method of Apportionment for each improvement area provides information sufficient to allow each property owner within CFD No. 2006-1 to estimate the maximum annual Special Tax he or she will be required to pay. Sections A through D, below, provide additional information on the Rate and Method of Apportionment of the Special Tax for each improvement area. A. Explanation for Special Tax Apportionment When a community facilities district is formed, a Special Tax may be levied on each parcel of taxable property within the CFD to pay for the purchase, construction, installation, expansion, improvement, or rehabilitation of any real or tangible property or to repay bonded indebtedness or other related expenses incurred by CFD No. 2006-1. This Special Tax must be apportioned in a reasonable manner. When more than one type of land use is present within a community facilities district, several criteria may be considered when apportioning the Special Tax. Generally, criteria based on building square footage, acreage, and land use are selected, and categories based on such criteria are established to differentiate between parcels of property. These categories are a direct result of the projected product mix, and are reflective of the proposed land use types within that community facilities district. Specific Special Tax levels are assigned to each land use class, with all parcels within a land use class assigned the same Special Tax rate. The Code does not require that Special Taxes be apportioned to individual parcels based on benefit received. However, in order to insure fairness and equity, benefit principles have been incorporated in establishing the Special Tax rates for CFD No. 2006-1. The major assumption inherent in the Special Tax rates set forth in the Rate and Method of Apportionment is that the level of benefit received from the proposed public improvements is a function of land use and building square footage. This assumption is borne out through an examination of commonly accepted statistical measures for public facility usage. In measuring average weekday vehicle trip-ends, the Institute of Transportation Engineer's Trin Generation manual identifies land use as the primary determinant of trip-end magnitude. Larger single family dwellings typically generate a greater number of trip-ends Count' of Hawaii December 28,1006 CFD No. 2006-I (The Villages ofAina Lea) page 9