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HomeMy WebLinkAbout2012-02-14 City Council Item No. 7 CITY OF LA E .,� LSI NO E , DREAM EXTREME,. REPORT TO CITY COUNCIL TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ROBERT A. BRADY CITY MANAGER DATE: FEBRUARY 14, 2012 SUBJECT: RESOLUTION OF INTENTION TO ANNEX PROPERTY INTO COMMUNITY FACILITIES DISTRICT NO. 2007 -1 (LAW ENFORCEMENT, FIRE AND + PARAMEDIC SERVICES) AND TO AUTHORIZE THE LEVY OF A SPECIAL TAX WITHIN ANNEXATION AREA NO. 3 (LA LAGUNA) Background On June 26, 2007, the City Council approved Resolution 2007 -113 establishing Community Facilities District No. 2007 -1 (Law Enforcement, Fire, and Paramedic Services). The City is requiring undeveloped parcels within the City that are developed with four or more residential dwelling units to be annexed into the service district. The City, as a condition of approval, is requiring all undeveloped property, which is proposed to be developed into four or more residential dwelling units, to also provide a funding mechanism to finance the development's financial impact to the City for law enforcement, fire protection and paramedic services. To meet that requirement, the City will allow a development to annex into the City's existing Community Facilities District No. 2007 -1. The property owners of the La Laguna residential development (Tract No. 32337) have requested that the City annex their development into the Community Facilities District No. 2007 -1 to comply with their condition of development. Discussion A maximum special tax was authorized to be levied in the amount of $450.29 per developed single family unit and $225.15 per developed multi - family unit for fiscal year 2011 -12. The maximum special tax increases two percent annually and may be levied in an amount of $459.30 per developed single family unit and $229.65 per developed multi- family unit for fiscal year 2012 -13. AGENDA ITEM NO. 7 Page 1 of I I Resolution of Intention to Annex Property into CFD 2007 -1 February 14, 2012 Page 2 The La Laguna development (Tract 32337) project will add 110 developed single family units to the existing district boundary and generate about $50,523.00 annually (in FY 2012 -13 dollars) once all the units are built. The map of the proposed boundary is attached. Fiscal Impact The cost to the City for law enforcement, fire and paramedic services is approximately $1,115 per single family .dwelling unit . for FY 2012 -13. For each new single family dwelling unit, approximately $656 will be generated from property tax and other revenues, not including this CFD, dedicated to law enforcement, fire and paramedic services. Property tax and other revenues generated from the residents are not sufficient to fund the entire cost of law enforcement, fire and paramedic services therefore the CFD 2007 -1 special tax levy will assist the funding the deficiencies of the cost of providing law enforcement, fire and paramedic services. Process The annexation into the district requires a specific process as outlined in the attached resolution. The City Council is required to hold a public hearing on the annexation into CFD 2007 -1 and the participating property owner will have the opportunity to vote for or against the annexation. The public hearing, by State law, is required to be held not less than 30 or more than 60 days after the adoption of the resolution of intention. The public hearing, as noted in the Resolution of Intention, is scheduled for March 27, 2012. Recommendations 1. Adopt the resolution of intention to Annex Property from Annexation Area No. 3 (La Laguna) into the CFD 2007 -1. 2. Schedule the public hearing on Annexation Area No. 3 (La Laguna) for March 27, 2012. Prepared by: James R. Riley Director of Administrative Services Approved by: Robert A. BradyY 1 City Manager Page 2of11 Resolution of Intention to Annex Property into CFD 2007 -1 February 14, 2012 Page 3 Attachment: 1. Resolution of Intention Page 3of11 Page 4 of 11 RESOLUTION .NO. 2012 -003 RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, TO ANNEX PROPERTY INTO COMMUNITY FACILITIES DISTRICT NO. 2007 -1 (LAW ENFORCEMENT, FIRE AND PARAMEDIC SERVICES) AND TO AUTHORIZE THE LEVY OF A SPECIAL TAX WITHIN SAID DISTRICT WHEREAS, the City Council (the "Council ") of the City of Lake Elsinore (the "City ") has established City of Lake Elsinore Community Facilities District No. 2007- 1 (Law Enforcement, Fire and Paramedic Services) (the "District ") pursuant to the Mello- Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the Government Code of the State of California (the "Act "); and WHEREAS, the District will finance law enforcement, fire and paramedic services that are in addition to those provided in the territory within the District prior to the formation of the District and do not supplant services already available within the territory proposed to be included in the District through the formation of the District subject to the levy of a special tax to pay for such services, being approved at an election to be held within the boundaries of the District; and WHEREAS, the Council has provided for the annexation in the future of territory (the "Future Annexation Area ") to the District pursuant to the terms and provisions of the Act; and WHEREAS, the City has received a Consent and Waiver from K. Hovnanian Companies of California, Inc., a California Corporation, requesting annexation of property owned by K. Hovnanian at La Laguna, LLC, a California Limited Liability Company and K. Hovnanian at Communities, Inc., a California Corporation, which constitutes a portion of the Future Annexation Area, into the District. NOW, THEREFORE, the City Council of the City of Lake Elsinore, California, does hereby resolve as follows: SECTION 1. The Council hereby determines to institute proceedings for the annexation of Annexation Area No. 3 (La Laguna) ( "Annexation Area No. 3 ") into the District under the terms of the Act. The exterior boundaries of the area to be annexed (Annexation Area No. 3) are hereby specified and described to be as shown on that "Annexation No. 3 of now on file in the office of the City certain map no o y Clerk entitled p Community Facilities District No. 2007 -1 (Law Enforcement, Fire and Paramedic Services), of the City of Lake Elsinore, County of Riverside, State of California ," which map indicates by a boundary line the extent of the territory included in Annexation Area No. 3 and shall govern for all details as to the extent of Annexation Area No. 3. SECTION 2. The map showing Annexation Area No. 3, which area is to be subject to a special tax to be levied, is hereby approved and adopted. On the original 1 Page 5of11 and one copy of the map of such Annexation Area No. 3 on file in the City Clerk's office, the City Clerk shall endorse the certificate evidencing the date and adoption of this resolution. The City Clerk shall file the original of such map in his office and, within fifteen (15) days after the adoption of this resolution, the City Clerk shall file a copy of such map so endorsed in the records of the County Recorder, County of Riverside, State of California. SECTION 3. The name of the proposed community facilities district shall be "City of Lake Elsinore Community Facilities District No. 2007 -1 (Law Enforcement, Fire and Paramedic Services), Annexation Area No. 3 (La Laguna)." SECTION 4. Except where fundsare otherwise available, it is the intention of the City Council to levy annually in accordance with procedures contained in the Act a special tax (the "Special Tax ") sufficient to finance a portion of the cost of providing law enforcement, fire and paramedic services that are in addition to those provided in the territory within Annexation Area No. 3 prior to the annexation of Annexation Area No. 3 and do not supplant services already available within the territory proposed to be included in the District, the costs of administering the levy and collection of the Special Tax and all other costs of the levy of the Special Tax, including any foreclosure proceedings, legal, fiscal, and financial consultant fees, election costs, and all other administrative costs of the tax levy. The Special Tax will be secured by recordation of a continuing lien against all non- exempt real property in the proposed Annexation Area No. 3. The schedule of the rate and method of apportionment and manner of collection of the Special Tax is described in detail in Exhibit "A" attached hereto and by this reference incorporated herein. The annexation of Annexation Area No. 3 will not result in any change to the special tax rates levied in the District prior to such annexation. The Special Tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act and such Special Tax is not on or based upon the ownership of real property. The maximum Special Tax applicable to a parcel to be used for private residential purposes, as set forth in Exhibit A, is specified as a dollar amount which shall be calculated and established not later than the date on which the parcel is first subject to tax because of its use for private residential purposes, and such amount shall not be increased over time by an amount in excess of 2 percent (2 %) per year. Under no circumstances will the Special Tax to be levied against any parcel used for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within the proposed Annexation Area No. 3 by more than 10 percent (10 %). As specified by the Act, for purposes of this paragraph, a parcel shall be considered "used for private residential purposes" not later than the date on which an occupancy permit for private residential use is issued. SECTION 5. A public hearing (the "Hearing ") on the annexation of Annexation Area No. 3 and the proposed rate and method of apportionment of the Special Tax shall be held on March 27, 2012, at 7:00 o'clock p.m., or as soon thereafter. 2 Page 6 of 11 as practicable, at the chambers of the City Council of the City of Lake Elsinore, 183 North Main Street, Lake Elsinore, California, 92530. SECTION 6. At the time and place set forth above for the hearing, . any interested person, including all persons owning lands or registered to vote within the proposed Annexation Area No. 3, may appear and be heard. SECTION 7. Each City officer who is or will be responsible for the District, if it is established, is hereby directed to study the proposed Annexation Area No. 3 and, at or before the time of the above - mentioned Hearing, file a report with the City Council, which is to be made a part of the record of the Hearing, containing a brief description of Annexation Area No. 3 and his or her estimate of the cost of providing additional law enforcement, fire and paramedic services within the boundary of Annexation Area No. 3. The City Manager is directed to estimate the fair and reasonable cost of all incidental expenses, including all costs associated with the annexation of Annexation Area No. 3, determination of the amount of any special taxes, collection of any special taxes, or costs otherwise incurred in order to carry out the authorized purposes of the City with respect to the District. SECTION 8. The City may accept advances of funds from any sources, including private persons or private entities, and is authorized and directed to use such funds for any authorized purpose, including any cost incurred by the City in annexing the proposed Annexation Area No. 3. The City may enter into an agreement to repay all of such funds as are not expended or committed for any authorized purpose at the time of the election on the levy of the Special Tax, if the proposal to levy such tax should fail, and to repay all of such funds advanced if the levy of the Special Tax shall be approved by the qualified electors of Annexation Area No. 3. SECTION 9. The City Clerk is hereby directed to publish a notice ( "Notice ") of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of the proposed Annexation Area No. 3. Such Notice shall contain the text of this resolution, state 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 Annexation Area No. 3 as provided in Section 53339.5 of the Act and a description of the proposed voting procedure for the election required by the Act. Such publication shall be completed at least 7 days prior to the date of the Hearing. SECTION 10. The voting procedure with respect to the establishment of the District and the imposition of the special tax shall be by mailed ballot election. SECTION 11. This resolution shall take effect from and after the date of its passage and adoption. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, this 14 day of February, 2012. 3 Page 7 of 11 BRIAN'' TISDALE MAYOR ATTEST: VIRGINIA BLOOM CITY CLERK APPROVED AS TO FORM: BARBARA ZEID LEIBOLD CITY ATTORNEY CITY OF LAKE ELSINORE STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE )ss. CITY OF LAKE ELSINORE ) I, VIRGINIA BLOOM, City Clerk of the City of Lake Elsinore, California, hereby certify that Resolution No. 2012 -003 was adopted by the City Council of the City, of Lake Elsinore, California, at a regular meeting held on the 14 day of February, 2012, and that the same was adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: VIRGINIA BLOOM CITY CLERK 4 Page 8of11 EXHIBIT A RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX Approved by City Council June 26, 2007 By Resolution 2007 -113 Page 9of11 EXHIBIT A CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2007 -1 (LAW ENFORCEMENT, FIRE AND PARAMEDIC SERVICES) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX Introduction Special taxes shall be annually levied on all Developed Residential Property and Developed Multi - Family Property °'(as hereinafter defined) in the City of Lake Elsinore Community Facilities District No. 2007 -1 (Law Enforcement, Fire and Paramedic Services) (the "District "), in accordance with the rate and method of apportionment of special taxes hereinafter set'. forth. All of the property within the District that is not Developed Residential or Developed Multi - Family Residential Property shall be exempt from the Maximum Annual Special Taxes of the District. Definitions Assessor's Parcel. A parcel of land in the District designated and assigned a discrete identifying number on a map of the County Assessor of the County of Riverside. City. City of Lake Elsinore, California. Developed Multi - Family Property. Assessor's Parcels in the District for which a building permit has been issued by the City on or prior to March 1 preceding the Fiscal Year for the construction of a Unit that is located or shall be located within a building in which each individual Unit has or shall have at least one common wall with another Unit. Developed Residential Property. All other Assessor's Parcels in the District for which a building permit has been issued by the Cityy on or prior to March 1 preceding any Fiscal Year for the construction of a Unit that is not Developed Multi- family Property. Fiscal Year. The period beginning on July 1 and ending on the following June 30. Maximum Annual Special Taxes. The maximum annual special taxes levied within the District for any Fiscal Year. Unit. Each separate residential dwelling unit, which comprises an independent facility capable of conveyance or use separate from adjacent dwelling units. 6 Page 10of11 Rate and Method of Apportionment of Maximum Annual Special Taxes As of July 1 of each Fiscal Year, commencing July 1, 2007, the City shall determine which of the Assessor's Parcels within the District constitute Developed Residential Property or Developed Multi- Family Property. Beginning in Fiscal Year 2007 -08, and all subsequent Fiscal Years, the City shall levy the Maximum Annual Special Taxes on each Assessor's Parcel of Developed Residential Property in the amount of $416 and on each Assessor's Parcel of Developed Multi - Family Property in the amount of $208 per Unit. The amount of Maximum Annual Special Taxes shall be increased annually by 2 %, commencing in Fiscal Year 2008 -09, and each Fiscal Year thereafter. Duration of the Maximum Annual Special Taxes The Maximum Annual Special Taxes shall be levied in perpetuity so long as Law Enforcement, Fire and Paramedic Services are being provided within the District. The Maximum Annual Special Taxes levied in each Fiscal Year shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes. The Maximum Annual Special taxes when levied shall be secured by the lien imposed pursuant to Section 3115.5 of the Streets and Highways Code. This lien shall P be a continuing lien and shall secure each levy of Maximum Annual Special Taxes. The lien of Maximum Annual Special Taxes shall continue in force and effect until the Special Tax ceases to be levied in the manner provided by Section 53330.5 of the Government Code. 7 Page 11 of 11