HomeMy WebLinkAbout2010-07-13 City Council Item No. 15CITY OF
LADELSIAOR E
DREAM EXTREME.
REPORT TO CITY COUNCIL
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: ROBERT A. BRADY
CITY MANAGER
DATE: JULY 13, 2010
SUBJECT: RESOLUTION CONFIRMING FISCAL YEAR 2010-11 SPECIAL TAXES
FOR:
CFD 88-3 (WEST LAKE ELSINORE PUBLIC IMPROVEMENTS 3
PHASES)
CFD 95-1 (LAKE ELSINORE CITY CENTER PUBLIC IMPROVEMENTS)
CFD 98-1 (SUMMERHILL PUBLIC IMPROVEMENTS)
CFD 2003-1 (LAW ENFORCEMENT, FIRE AND PARAMEDIC
SERVICES)
CFD 2003-2 (CANYON HILLS)
CFD 2004-3 (ROSETTA CANYON)
CFD 2005-1 (SERENITY)
CFD 2005-2 (ALBERHILL RANCH)
CFD 2005-5 (VILLAGES AT WASSON CANYON)
CFD 2005-6 (CITY CENTER TOWNHOMES)
CFD 2006-1 (SUMMERLY)
CFD 2006-2 (VISCAYA)
CFD 2006-3 (LA STRADA)
CFD 2006-5 (PARKS, OPEN SPACE AND STORM DRAIN
MAINTENANCE)
CFD 2007-5 (RED KITE)
CFD 2007-6 (HOLIDAY INN EXPRESS)
CFD 2009-1 (PARKS, OPEN SPACE AND STREET LIGHTING
MAINTENANCE)
Background
The City is required by the County of Riverside to provide a certified Resolution to the
Auditor/Controller's office each year to confirm the special tax levies within each CFD
for the annual property tax roll.
AGENDA ITEM NO.15
Page 1 of 12
Resolution Confirming FY 2010-11 Special Taxes
July 13, 2010
Page 2
Discussion
This is the eighteenth year for special taxes on CFD 88-3.
This is the eighteenth year for special taxes on CFD 98-1 (previously 91-2).
This is the fourteenth year for special taxes on CFD 95-1.
This is the seventh year for special taxes on CFD 2003-1 and CFD 2003-2.
This is the sixth year for special taxes on CFD 2004-3, CFD 2005-1, and CFD 2005-6.
This is the fifth year for special taxes on CFD 2005-2, CFD 2005-5, CFD 2006-1 and
CFD 2006-2.
This is the fourth year for special taxes on CFD 2006-5.
This is the third year for special taxes on CFD 2007-6.
This is the second year of special taxes for CFD 2006-3 and CFD 2007-5.
This is the first year of special taxes for CFD 2009-1.
The City has seen a rise in the rate of special tax delinquencies and foreclosures due to
delinquencies. In order to make sure money is available to pay the required debt
service payment on the bonds, the CFDs are authorized to increase the special tax by
up to 10% on each parcel.
Last year, CFDs 2003-2, 2004-3, 2005-1, 2005-2, 2005-6 and 2006-2 were all increased
by 10% in anticipation of delinquencies.
The delinquency rate for CFD 2003-2 Improvement Area A has decreased to
approximately 8%; therefore, with application of the 2% annual increase, the FY 2010-
11 tax rates will remain the same as the prior year rates. The remaining districts will
stay at the increased level for FY 2010-11, based on the expectation of continued high
delinquency rates.
CFD 88-3 and CFD 98-1 have surpluses; therefore the special taxes are being reduced
by up to $50 per parcel.
CFD 95-1 has never had delinquencies, and we do not see this trend changing,
therefore, there has been no need to adjust the annual special tax calculation for this
CFD.
The remaining CFDs do not have bond issues; therefore, increases for anticipated
delinquencies are not required.
CFD 2006-3 and CFD 2007-5 are being levied for administrative costs only. Both CFDs
have a negative fund balance and must cover both past administrative costs as well as
the budgeted FY 2010-11 administrative costs.
Page 2 of 12
Resolution Confirming FY 2010-11 Special Taxes
July 13, 2010
Page 2
Fiscal Impac
There is no fiscal impact directly associated with this item. The city charges
administrative fees and an amount sufficient to cover direct costs as well as the bonded
debt services. The attached schedule shows the changes in the number of parcels and
the total change in special tax from last year.
Recommendation
Waive further reading and adopt a resolution requesting the Tax Collector of the County
of Riverside to place special taxes on the bills of certain properties within the CFD.
Prepared by: James Rile
Director of A inistrative Services
Approved by: Robert A. Bradyl
City Manager
Page 3 of 12
Resolution Confirming FY 2010-11 Special Taxes
July 13, 2010
Page 3
Summary of Special Tax Lew
CFD No.
Total
Parcels
Change from
Previous Year
Total Charges
Change from
Previous Year
88-3
1,965
64
$3,639,092.92
$19,790.92
95-1
7
0
$112,650.04
-$7,625.02
98-1
422
0
$1,117,131.80
-$26,141.00
2003-1
4,105
217
$1,429,573.10
$101,355.14
2003-2
1,839
0
$2,582,738.76
-$21,454.30
2004-3
1,031
0
$3,222,335.54
$61,152.62
2005-1
233
0
$654,145.16
$12,768.00
2005-2
427
0
$1,706,005.32
$34,106.18
2005-5
135
0
$404,288.08
$7,928.18
2005-6
144
0
$254,346.24
$5,332.80
2006-1
10
0
$31,649.64
$621.58
2006-2
168
0
$542,362.92
$10,984.28
2006-3
128
0
$11,000.44
$11,000.44
2006-5
28
0
$34,200.04
$670.68
2007-5
48
0
$11,300.08
$11,300.08
2007-6
1
0
$5,202.00
$102.00
2009-1
119
119
$39,355.68
$39,355.68
Note: The first 2% of any increased amount is attributable to the automatic 2% increase
in the special tax rates. Any additional increases are from taxes for 1.) new homes
subject to the tax for the first time, 2.) anticipated future delinquencies, and/or 3.)
additional administrative costs.
Page 4 of 12
County Fund Numbers: See Attached
RESOLUTION NO. 2010-045
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LAKE ELSINORE, CALIFORNIA, REQUESTING THE TAX
COLLECTOR OF THE COUNTY OF RIVERSIDE TO PLACE
SPECIAL TAXES ON THE BILLS OF CERTAIN
PROPERTIES WITHIN THE CFD
WHEREAS, the City Council (the "Council") of the City of Lake Elsinore,
California (the "City"), has heretofore instituted and conducted proceedings under the
terms and provisions of the Mello-Roos Community Facilities Act of 1982 (the "Act"), being
Chapter 25 of the State of California Government Code for the acquisition and construction
of certain public works of improvements, together with appurtenances and appurtenant
work, and to finance a portion of the costs of providing services, as applicable, in special
tax districts designated as
COMMUNITY FACILITIES DISTRICT NO. 88-3
(WEST LAKE ELSINORE PUBLIC IMPROVEMENTS)
COMMUNITY FACILITIES DISTRICT NO. 95-1
(LAKE ELSINORE CITYCENTER PUBLIC IMPROVEMENTS)
COMMUNITY FACILITIES DISTRICT NO. 98-1
(SUMMERHILL PUBLIC IMPROVEMENTS)
COMMUNITY FACILITIES DISTRICT NO. 2003-1
(LAW ENFORCEMENT, FIRE, AND PARAMEDIC SERVICES)
COMMUNITY FACILITIES DISTRICT NO. 2003-2 (CANYON HILLS)
COMMUNITY FACILITIES DISTRICT NO. 2004-3 (ROSETTA CANYON)
COMMUNITY FACILITIES DISTRICT NO. 2005-1 (SERENITY)
COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ALBERHILL RANCH)
COMMUNITY FACILITIES DISTRICT NO. 2005-5 (WASSON CANYON)
COMMUNITY FACILITIES DISTRICT NO. 2005-6
(CITY CENTER TOWNHOMES)
COMMUNITY FACILITIES DISTRICT NO. 2006-1 (SUMMERLY)
COMMUNITY FACILITIES DISTRICT NO. 2006-2 (VISCAYA)
Page 5 of 12
Resolution No. 2010-045
Page 2 of 8
County Fund Numbers: See Attached
COMMUNITY FACILITIES DISTRICT NO. 2006-3 (LA STRADA)
COMMUNITY FACILITIES DISTRICT NO. 2006-5
(PARKS, OPEN SPACE AND STORM DRAIN MAINTENANCE)
COMMUNITY FACILITIES DISTRICT NO. 2007-5 (RED KITE)
COMMUNITY FACILITIES DISTRICT NO. 2007-6
(HOLIDAY INN EXPRESS)
COMMUNITY FACILITIES DISTRICT NO. 2009-1
(PARKS, OPEN SPACE AND STREET LIGHTING MAINTENANCE)
(hereinafter referred to as the "CFD"); and
WHEREAS, Resolution No. 91-19 adopted on February 26, 1991, the
"Resolution of Intention", Resolution No. 91-30 entitled "A Resolution of Special Election
and Directing Recording of Notice of Special Tax Lien", adopted April 9, 1991; and
Ordinance No. 913 entitled "An Ordinance of the City Council of the City of Lake Elsinore
Levying Special Taxes Within the City of Lake Elsinore Community Facilities District No.
88-3 (WEST LAKE ELSINORE PUBLIC IMPROVEMENTS)", adopted April 23,1991; and
WHEREAS, Resolution No. 95-68 adopted on October 10, 1995, the
"Resolution of Intention", Resolution No. 95-78 entitled "A Resolution of Special Election
and Directing Recording of Notice of Special Tax Lien", adopted November 14, 1995; and
Ordinance No.1006 entitled "An Ordinance of the City Council of the City of Lake Elsinore
Levying Special Taxes Within the City of Lake Elsinore Community Facilities District No.
95-1 (LAKE ELSINORE CITY CENTER PUBLIC IMPROVEMENTS)", adopted November
28, 1995; and
WHEREAS, Resolution No. 98-7 adopted on June 9, 1998, the "Resolution of
Intention"; and Resolution No. 98-15 entitled "Resolution of Formation Determining the
Validity of Prior Proceedings, Establishing Community Facilities District No. 98-1,
Authorizing the Levy of a Special Tax Within Community Facilities District No. 98-1, and
establishing an Appropriations Limit", adopted June 23, 1998; and
WHEREAS, Resolution No. 2003-21 adopted on June 24, 2003, the
"Resolution of Intention" Resolution No. 2003-37 entitled "Resolution of Formation of the
City Council of the City of Lake Elsinore Determining the Validity of Prior Proceedings,
Establishing City of Lake Elsinore Community Facilities District No. 2003-1 (LAW
ENFORCEMENT, FIRE, AND PARAMEDIC SERVICES), and Authorizing the Levy of a
Special Tax Within said District", adopted August 12, 2003; and
WHEREAS, Resolution No. 2003-50 adopted on October 14, 2003, the
"Resolution of Intention"; Resolution No. 2004-6 entitled 'Resolution of Formation
Determining the Validity of Prior Proceedings, and Establishing City of Lake Elsinore
Page 6 of 12
Resolution No. 2010-045
Page 3 of 8
Community Facilities District No. 2003-2 (Canyon Hills)", adopted January 13, 2004, and
Ordinance No. 1114 entitled "Ordinance of the City of Lake Elsinore Authorizing the levy of
a public safety special tax and a special tax" adopted January 13, 2004, Authorizing the
Levy of a Special Tax Within Community Facilities District No. 2003-2 (CANYON HILLS),
and establishing an Appropriations Limit", adopted June 23, 1998; and
WHEREAS, Resolution No. 2004-77 adopted the "Resolution of Intention" on
December 28, 2004; Resolution No. 2004-38 entitled "Resolution of Formation of the City
Council of the City of Lake Elsinore Determining the Validity of Prior Proceedings,
Establishing City of Lake Elsinore Community Facilities District No. 2004-3 (ROSETTA
CANYON)" adopted March 22, 2005, and Ordinance No. 1148, Authorizing the Levy of a
Special Tax adopted March 22, 2005; and
WHEREAS, Resolution No. 2004-70 adopted the "Resolution of Intention", on
December 14, 2004; Resolution No. 2005-10 entitled "Resolution of Formation of the City
Council of the City of Lake Elsinore Determining the Validity of Prior Proceedings,
Establishing City of Lake Elsinore Community Facilities District No. 2005-1 (SERENITY)",
adopted January 25, 2005, and Ordinance No. 1139, Authorizing the Levy of a Special
Tax, adopted January 25, 2005; and
WHEREAS, Resolution No. 2005-62 adopted the "Resolution of Intention" on
July 12, 2005; Resolution No. 2005-138 entitled "Resolution of Formation of the City
Council of the City of Lake Elsinore Determining the Validity of Prior Proceedings,
Establishing City of Lake Elsinore Community Facilities District No. 2005-2 (ALBERHILL
RANCH)" adopted September 13, 2005, and Ordinance No.1163, Authorizing the Levy of a
Special Tax adopted September 13, 2005; and
WHEREAS, Resolution No. 2005-54 adopted the "Resolution of Intention" on
June 28, 2005; Resolution No. 2005-104 entitled "Resolution of Formation of the City
Council of the City of Lake Elsinore Determining the Validity of Prior Proceedings,
Establishing City of Lake Elsinore Community Facilities District No. 2005-5 (WASSON
CANYON)" adopted August 9, 2005, and Ordinance No. 1156, Authorizing the Levy of a
Special Tax adopted August 23, 2005; and
WHEREAS, Resolution No. 2005-76 adopted the "Resolution of Intention" on
July 26, 2005; Resolution No. 2005-141 entitled "Resolution of Formation of the City
Council of the City of Lake Elsinore Determining the Validity of Prior Proceedings,
Establishing City of Lake Elsinore Community Facilities District No. 2005-6 (CITY CENTER
TOWNHOMES)" adopted September 13, 2005, and Ordinance No. 1164, Authorizing the
Levy of a Special Tax adopted September 13, 2005; and
WHEREAS, Resolution No. 2006-08 adopted the "Resolution of Intention" on
January 24, 2006; Resolution No. 2006-30 entitled "Resolution of Formation of the City
Council of the City of Lake Elsinore Determining the Validity of Prior Proceedings,
Establishing City of Lake Elsinore Community Facilities District No. 2006-1 (SUMMERLY)"
adopted February 28, 2006, and Ordinance No.1171, Authorizing the Levy of a Special Tax
adopted February 28, 2006; and
Page 7 of 12
Resolution No. 2010-045
Page 4 of 8
WHEREAS, Resolution No. 2006-20 adopted the "Resolution of Intention" on
February 9, 2006; Resolution No. 2006-52 entitled "Resolution of Formation of the City
Council of the City of Lake Elsinore Determining the Validity of Prior Proceedings,
Establishing City of Lake Elsinore Community Facilities District No. 2006-2 (VISCAYA)"
adopted April 25, 2006, and Ordinance No. 1177, Authorizing the Levy of a Special Tax
adopted April 25, 2006; and
WHEREAS, in City Resolution No. 2006-10 adopted the "Resolution of
Intention" on January 24, 2006; City Resolution No. 2006-79 entitled "Resolution of
Formation of the City Council of the City of Lake Elsinore Determining the Validity of Prior
Proceedings, Establishing City of Lake Elsinore Community Facilities District No. 2006-3
(LA STRADA)" adopted June 13, 2006, and Ordinance No. 1182, Authorizing the Levy of a
Special Tax adopted June 13, 2006; and
WHEREAS, Resolution No. 2006-41 adopted the "Resolution of Intention", on
March 28, 2006; Resolution No. 2006-56 entitled "Resolution of Formation of the City
Council of the City of Lake Elsinore Determining the Validity of Prior Proceedings,
Establishing City of Lake Elsinore Community Facilities District No. 2006-5 (PARKS, OPEN
SPACE AND STORM DRAIN MAINTENANCE)", adopted May 9, 2006, and Ordinance No.
1179, Authorizing the Levy of a Special Tax, adopted May 9, 2006; and
WHEREAS, Resolution No. 2007-198 adopted the "Resolution of Intention"
on November 27, 2007; Resolution No. 2008-11 entitled "Resolution of Formation of the
City Council of the City of Lake Elsinore Determining the Validity of Prior Proceedings and
Establishing City of Lake Elsinore Community Facilities District No. 2007-5 (RED KITE)"
adopted January 8, 2008, and Ordinance No. 1242, Authorizing the Levy of a Special Tax
adopted January 8, 2008; and
WHEREAS, Resolution No. 2007-205 adopted the "Resolution of Intention"
on December 11, 2007; Resolution No. 2008-17 entitled "Resolution of Formation of the
City Council of the City of Lake Elsinore, California, Determining the Validity of Prior
Proceedings and Establishing City of Lake Elsinore Community Facilities District No. 2007-
6 (HOLIDAY INN EXPRESS)" adopted January 22, 2008, and Ordinance No. 1244,
Authorizing the Levy of a Special Tax adopted January 22, 2008; and
WHEREAS, Resolution No. CC-2010-001 adopted the "Resolution of
Intention" on January 12, 2010; Resolution No. 2010-007 entitled "Resolution of Formation
of the City Council of the City of Lake Elsinore, California, Determining the Validity of Prior
Proceedings and Establishing City of Lake Elsinore Community Facilities District No. 2009-
1 (PARKS, OPEN SPACE AND STREET LIGHTING MAINTENANCE)" adopted February
23, 2010, and Ordinance No. 2010-1273, Authorizing the Levy of a Special Tax adopted
February 23, 2010; and
WHEREAS, all special taxes in the CFD were levied without regard to
property valuation.
4
Page 8 of 12
Resolution No. 2010-045
Page 5 of 8
NOW, THEREFORE, the City Council of the City of Lake Elsinore, California,
does hereby resolve as follows:
SECTION 1. That the portion of the principal, interest and other costs related
to the CFD due or coming due through June 30, 2011 be placed on the County Tax Rolls
and be collected by the Riverside County Tax Collector, as provided for in Exhibit "A" (a
summary of fixed charges).
SECTION 2. That the properties to be so assessed and the related amounts
are submitted via File Transfer Protocol (FTP) as requested by the Riverside County
Auditor Controller, further identified as the following County Fund Numbers:
Fund No.
CFD No.
68-2352
2003-1
68-2366
98-1
68-2367
88-3
68-2372
95-1
68-4400
2005-6
68-8701
2005-1
68-8705
2006-2
68-8706
2006-3
68-8707
2006-5
68-8708
2005-5
68-8709
2003-21A-A
68-8710
2003-2 [A-13
68-8711
2003-21A-C
68-8713
2003-2 Fire Tax
68-8714
2004-31A-1
68-8715
2004-3lA-2
68-8716
2005-21A-A
68-8719
2005-2 Services
Tax
68-8721
2005-5 Services
Tax
68-8722
2006-1
68-8725
2006-1 Services
Tax
68-8726
2006-2 Services
Tax
68-8741
2007-5
68-8743
2007-6
68-8744
2009-1
SECTION 3. This resolution shall take effect from and after the date of its
passage and adoption.
5
Page 9 of 12
Resolution No. 2010-045
Page 6 of 8
PASSED, APPROVED AND ADOPTED at a regular meeting of the City
Council of the City of Lake Elsinore, California, this 13th day of July, 2010.
MELISSA MELENDEZ
MAYOR
ATTEST:
CAROL COWLEY
INTERIM CITY CLERK
APPROVED AS TO FORM:
BARBARA ZEID LEIBOLD
CITY ATTORNEY
6
Page 10 of 12
Resolution No. 2010-045
Page 7 of 8
CITY OF LAKE ELSINORE
EXHIBIT "A"
COMMUNITY FACILITIES DISTRICT
SUMMARY OF FIXED CHARGES FOR TAX ROLL
FISCAL YEAR 2010-11
Fund
Number
CFD No.
Total
Parcels
Total
Charges
68-2352
2003-1
4,105
$1,429,573.10
68-2366
98-1
422
$1,117,131.80
68-2367
88-3
1,965
$3,639,092.92
68-2372
95-1
7
$112,650.04
681}400
2005-6
144
$254,346.24
68-8701
2005-1
233
$654,145.16
68-8705
2006-2
168
$497,476.68
68-8706
2006-3
128
$11,000.44
68-8707
2006-5
28
$34,200.04
68-8708
2005-5
135
$368,218.78
68-8709
2003-2IA-A
594
$905,715.06
68-8710
2003-2 IA-13
655
$1,314,879.30
68-8711
2003-21A-C
154
$284,433.14
68-8713
2003-2 Fire Tax
436
$77,711.26
68-8714
2004-31A-1
509
$1,481,596.60
68-8715
2004-31A-2
522
$1,740,738.94
68-8716
2005-21A-A
427
$1,629,057.48
68-8719
2005-2 Services Tax
288
$76,947.84
68-8721
2005-5 Services Tax
135
$36,069.30
68-8722
2006-1
10
$28,977.84
68-8725
2006-1 Services Tax
10
$2,671.80
68-8726
2006-2 Services Tax
168
$44,886.24
68-8741
2007-5
48
$11,300.08
68-8743
2007-6
1
$5,202.00
68-8744
2009-1
119
$39,355.68
7
Page 11 of 12
Resolution No. 2010-045
Page 8 of 8
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )ss.
CITY OF LAKE ELSINORE )
I, CAROL COWLEY, Interim City Clerk of the City of Lake Elsinore, California,
hereby certify that Resolution No. 2010-044 was adopted by the City Council of the City of
Lake Elsinore, California, at a regular meeting held on the 13th day of July, 2010, and that
the same was adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
CAROL COWLEY
INTERIM CITY CLERK
Page 12 of 12