HomeMy WebLinkAbout2009-07-28 City Council Item No. 6CITY OF
LADE , LSINORE
DREAM EXTREME.
REPORT TO CITY COUNCIL
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: ROBERT A. BRADY
CITY MANAGER
DATE: JULY 28, 2009
SUBJECT: RESOLUTION CONFIRMING FISCAL YEAR 2009-10 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 2006-5
Parks, Open Space and Storm Drain Maintenance
CFD 2007-6
Holiday Inn Express
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 property tax roll.
CC July 28, 2009 Item No. 6
Page 1 of 11
Resolution Confirming FY 2009-10 Special Taxes
July 28, 2009
Page 2
Discussion
This is the seventeenth year for special taxes on CFD 88-3.
This is the seventeenth year for special taxes on CFD 98-1 (previously 91-2).
This is the thirteenth year for special taxes on CFD 95-1.
This is the sixth year for special taxes on CFD 2003-1 and CFD 2003-2.
This is the fifth year for special taxes on CFD 2004-3, CFD 2005-1, and CFD 2005-6.
This is the fourth year for special taxes on CFD 2005-2, CFD 2005-5, CFD 2006-1 and
CFD 2006-2.
This is the third year for special taxes on CFD 2006-5.
This is the second year for special taxes on CFD 2007-6.
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. These districts will stay at this increased level
for FY 2009-10, based on the expectation of continued high delinquency rates.
CFD 88-3 has a surplus, therefore it is only being increased by 3.4% for anticipated
delinquencies.
CFD 98-1 has a surplus, therefore it is only being increased by 5.8% for anticipated
delinquencies.
CFD 95-1 has never had delinquencies, and we do not see this trend changing. In
addition, bonds will be called later this year, thereby reducing the overall debt within the
CFD. Therefore, the special taxes have been reduced by 18% because of the bond
call.
The remaining CFDs do not have bond issues; therefore, increases for anticipated
delinquencies are not required.
Fiscal Impact
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.
CC July 28, 2009 Item No. 6
Page 2 of 11
Resolution Confirming FY 2009-10 Special Taxes
July 28, 2009
Page 3
Recommendation
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 R. Rilea-
Acting Director Administrative Services
Approved by: Robert A. Bradye
City Manager CC July 28, 2009 Item No. 6
Page 3 of 11
Resolution Confirming FY 2009-10 Special Taxes
July 28, 2009
Page 4
Summary of Special Tax Lew
CFD No.
Total
Parcels
Change from
Previous Year
Total Charges
Change from
Previous Year
88-3
1,901
30
$3,619,302.00
$186,507.16
95-1
7
0
$120,275.06
-$27,859.94
98-1
422
0
$1,143,272.80
$83,116.10
2003-1
3,888
-1
$1,328,217.96
$55,178.28
2003-2
1,839
206
$2,604,193.06
$199,627.14
2004-3
1,031
0
$3,161,182.92
$318,598.52
2005-1
233
0
$641,377.16
$15,052.64
2005-2
427
0
$1,671,899.14
$9,803.04
2005-5
135
22
$396,359.90
$68,990.70
2005-6
144
0
$249,013.44
$7,690.56
2006-1
10
0
$31,028.06
$607.44
2006-2
168
0
$531,378.64
$13,078.22
2006-5
28
1
$33,529.36
$23,960.76
2007-6
1
0
$5,100.00
$100.00
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, or
3.) both 1 and 2.
CC July 28, 2009 Item No. 6
Page 4 of 11
County Fund Numbers: See Attached
RESOLUTION NO. 2009-
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 forthe 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)
COMMUNITY FACILITIES DISTRICT NO. 2006-5
CC July 28, 2009 Item No. 6
Page 1 of 6 Page 5 of 11
(PARKS, OPEN SPACE AND STORM DRAIN MAINTENANCE)
COMMUNITY FACILITIES DISTRICT NO. 2007-6
(HOLIDAY INN EXPRESS)
(hereinafter referred to as the "CFD"); and
WHEREAS, in 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, in 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, in 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, in 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, in 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
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, in 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,
CC July 28, 2009 Item No. 6
Page 2 of 6 CC ResolutRagbld fflm9-
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, in 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, in 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, in 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, in 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 August 23, 2005; and
WHEREAS, in 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 August 23, 2005; and
WHEREAS, in 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 Resolution No. 2006-41 adopted the "Resolution of Intention",
on March 28, 2006; Resolution No. 2006-56 entitled 'Resolution of Formation of the City
CC July 28, 2009 Item No. 6
Page 3 of 6 CC ResolutR"d. 0099-
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, in 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, all special taxes in the CFD were levied without regard to
property valuation.
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, 2010 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 on CD as requested by the Riverside County Tax Collector, further identified
as the following County Fund Numbers:
SECTION 3. This resolution shall take effect from and after the date of its
passage and adoption.
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
68-8707
2006-5
68-8708
2005-5
68-8709
2003-21A-A
68-8710
2003-21A-B
68-8713
2003-2 Fire Tax
68-8714
2004-31A-1
CC July 28, 2009 Item No. 6
Page 4 of 6 CC ResoluftgWd ON-
Fund No.
CFD No.
68-8715
2004-3 IA-2
68-8716
2005-21A-A
68-8717
2005-21A-B
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
68-8743
2007-6
PASSED, APPROVED AND ADOPTED at a regular meeting of the City
Council of the City of Lake Elsinore, California, this 28th day of July, 2009 by the following
vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ROBERT MAGEE
MAYOR
ATTEST:
DEBORA THOMSEN
CITY CLERK
APPROVED AS TO FORM:
BARBARA ZEID LEIBOLD
CITY ATTORNEY
CC July 28, 2009 Item No. 6
Page 5 of 6 CC Resoluff?AgNdR ON-
CITY OF LAKE ELSINORE
EXHIBIT "A"
COMMUNITY FACILITIES DISTRICT
SUMMARY OF FIXED CHARGES FOR TAX ROLL
FISCAL YEAR 2009-10
Fund
Total
Total
Number
CFD No.
Parcels
Charges
68-2352
2003-1
3,888
$1,328,217.96
68-2366
98-1
422
$1,143,272.80
68-2367
88-3
1,901
$3,619,302.00
68-2372
95-1
7
$120,275.06
6811400
2005-6
144
$249,013.44
68-8701
2005-1
233
$641,377.16
68-8705
2006-2
168
$487,372.72
68-8707
2006-5
28
$33,529.36
68-8708
2005-5
135
$360,998.00
68-8709
2003-21A-A
594
$905,715.16
68-8710
2003-2 IA-B
655
$1,291,428.60
68-8711
2003-2 IA-C
86
$161,882.58
68-8713
2003-2 Fire Tax
504
$245,166.72
68-8714
2004-31A-1
509
$1,454,570.50
68-8715
2004-3 IA-2
522
$1,706,612.42
68-8716
2005-2 IA-A
427
$1,599,603.70
68-8719
2005-2 Services Tax
276
$72,295.44
68-8721
2005-5 Services Tax
135
$35,361.90
68-8722
2006-1
10
$28,408.66
68-8725
2006-1 Services Tax
10
$2,619.40
68-8726
2006-2 Services Tax
168
$44,005.92
68-8743
2007-6
1
$5,100.00
CC July 28, 2009 Item No. 6
Page 6 of 6 CC Resokffin af)09-
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE SS
CITY OF LAKE ELSINORE
I, Debora Thomsen, City Clerk of the City of Lake Elsinore, California, do hereby
certify that the attached Resolution No. 2009-_ was dul~ approved and adopted by the
City Council at the regular meeting thereof held on the 28t day of July, 2009. Attached is
a true and correct copy of the original document which is on file in my office.
EXECUTED this 29th day of July, 2009, at the City Clerk's office of Lake Elsinore,
California.
Debora Thomsen, CMC
City Clerk of the City of Lake Elsinore, California
CC July 28, 2009 Item No. 6
Page 11 of 11