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HomeMy WebLinkAboutCC Reso No 1991-19RESOLUTION NO. 91 -19 A RESOLUTION OF INTENTION TO ESTABLISH A COMMUNITY FACILITIES DISTRICT AND TO AUTHORIZE THE LEVY OF SPECIAL TAXES PURSUANT TO THE MELLO -ROOS COMMUNITY FACILITIES ACT OF 1982 City of Lake Elsinore Community Facilities District No. 91 -2 (Summerhill Public Improvements) RESOLVED by the City Council of the City of Lake Elsinore (the "City ") that: WHEREAS, under the Mello -Roos Community Facilities Act of 1982, as amended (the "Act "), Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing at Section 53311, of the California Government Code, this City Council may act as the legislative body for proposed community facilities districts and is empowered with the authority to establish community facilities districts; and WHEREAS, this City Council has received a petition requesting that this City Council establish a community facilities district under the Act; and WHEREAS, there has been presented to this City Council a form of Agreement Regarding Advances (the "Agreement "), whereby one of the landowners within the proposed community facilities district is willing to advance the funds necessary to form the district; and WHEREAS, this City Council, with the aid of City staff, has reviewed the Petitions and the Agreement and found them to be in proper form and now desires to proceed with the establishment of a community facilities district under the Act. NOW, THEREFORE, IT IS HEREBY ORDERED as follows: 1. This City Council proposes to conduct proceedings to establish a community facilities district pursuant to the Act. 2. This City Council hereby acknowledges receipt of a petition (the "Petition ") of Friedman Homes, Inc. to form a community facilities district (the "District ") in the Summerhill area of the City. 3. This City Council hereby approves the Agreement, in the form submitted to this City Council at this meeting or with such changes thereto as shall be approved by the Director of Administrative Services, and authorizes and directs the Director of Administrative Services to execute and deliver the Agreement and accept and expend the deposit referred to therein in the manner specified in the Agreement. 4. The name proposed for the District is City of Lake Elsinore Community Facilities District No. 91 -2 (Summerhill Public Improvements). 5. The proposed boundaries of the District are as shown on the map of the District on file with the City Clerk, which boundaries are hereby preliminarily approved and to which map reference is hereby made for further particulars. The City Clerk is hereby directed to record, or cause to be recorded, said map of the boundaries of the District in the office of the County Recorder within fifteen days of the date of adoption of this Resolution. 6. The type of public facilities proposed to be financed by the District and pursuant to the Act shall consist of those items listed as facilities (the "Facilities ") on Exhibit A hereto, which exhibit is by this reference incorporated herein. 7. Except to the extent that funds are otherwise available to the District to pay for the Facilities and/or the principal and interest as it becomes due on bonds of the District issued to finance the Facilities, a special tax sufficient to pay the costs thereof, secured by recordation of a continuing lien against all non - exempt real property in the District, is intended to be levied annually within the District, and collected in the same manner as ordinary ad valorem. property taxes. The proposed rate and method of apportionment of the special tax among the parcels of real property within the District, in sufficient detail to allow each landowner within the proposed District to estimate the maximum amount such owner will have to pay, are described in Exhibit B attached hereto, which exhibit is by this reference incorporated herein. 8. It is the intention of this City Council acting as the legislative body for the District to cause bonds of the City to be issued for the District pursuant to the Act to finance in whole or in part the Facilities. Said bonds shall be in the aggregate principal amount of not to exceed $17,500,000, shall bear interest payable semi - annually or in such other manner as this City Council shall determine, at a rate not to exceed the maximum rate of interest as may be authorized by applicable law at the time of sale of such bonds, and shall mature not to exceed 40 years from the date of the issuance thereof. 9. The levy of said proposed special tax shall be subject to the approval of the qualified electors of the District at a special election. The proposed voting procedure shall be by mailed or hand - delivered ballot among the landowners in said proposed District, with each owner having one vote for each acre or portion of an acre such owner owns in the District. 10. Except as may otherwise be provided by law or by the rate and method of apportionment of the special taxes set forth in Exhibit B, all lands owned by any public entity, including the United States, the State of California and/or the City, or any departments or political subdivisions thereof, shall be omitted from the levy of the special tax to be made to cover the costs and expenses of the Facilities. In the event that a portion of the property within the District shall become for any reason exempt, wholly or in part, from the levy of the special tax described in Exhibit B, this City Council will, on behalf of the District, increase the levy to the extent necessary upon the remaining property within the District which is not exempt in order to yield the required debt service payments and other annual expenses of the District, if any, subject to any maximum special tax that may be levied. 11. The Director of Public Works of the City of Lake Elsinore, as the officer having charge and control of the Facilities in and for the District, is hereby directed to study said proposed Facilities and to make, or cause to be made, and file with the City Clerk a report in writing, presenting the following: (a) A description of the Facilities by type which will be required to adequately meet the needs of the District. (b) An estimate of the fair and reasonable cost of financing the Facilities including the cost of acquisition of lands,. rights -of -way and easements, any physical facilities required in conjunction therewith and incidental expenses in connection with said financing, including the costs of the proposed bond financing and all other related costs as provided in Section 53345.3 of the Act. Said report shall be made a part of the record of the public hearing provided for below. 12. Tuesday, April 9, 1991, at 7:00 p.m., in the regular meeting place of this City Council, in the School Board meeting room of the Lake Elsinore Unified School District, 545 Cheney Street, Lake Elsinore, California, be, and the same are hereby appointed and fixed as the time and place when and where this City Council, as legislative body for the District, will conduct a public hearing on the establishment of the District and consider and finally determine whether the public interest, convenience and necessity require the formation of the District and the levy of said special tax. 13. The City Clerk is hereby directed to cause notice of said public hearing to be given by publication one time in a newspaper published in the area of the District. The publication of said notice shall be completed at least seven days before the date herein set for said hearing. Said notice shall be substantially in the form of Exhibit C hereto. 14. The law firms of Jones Hall Hill & White, A Professional Law Corporation, and Brown, Harper, Burns & Hentschke are hereby designated as co -bond counsel to the City in connection with the formation of the District and the special tax bonds expected to be issued by the City for the District. The Director of Administrative Services of the City or his designee is hereby authorized to execute and deliver agreements with said firms for services in connection with the District and said bonds in the forms on file with the City Clerk. 15. First California Capital Markets Group is hereby designated as financing consultant to the City in connection with the establishment of the District and the issuance of special tax bonds of the City for the District. The Director of Administrative Services is hereby authorized to execute and deliver an agreement with said firm for its services in connection with the District. 16. The firm of BSI Consultants, Inc. is hereby designated as District Engineer and Special Tax consultant to the City in connection with the District. The Director of Administrative Services is hereby authorized and directed to execute and deliver agreement with said firm for its services in connection with the District. PASSED AND ADOPTED this 26th day of February, 1991, by the following vote: AYES: COUNCILMEMBERS: DOMINCUEZ, STARKEY, WINKLER, WASHBURN NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: BUCK . Washburn, Mayor of Lake Elsinore (SEAL) Attest: 1 r` r ` Byr,1 Vicki Kasad, City Clerk City of Lake Elsinore Approved as to Form & Legality: STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) SS: CITY OF LAKE ELSINORE ) I. Vicki Lynne Kasad, City Clerk of the City of Lake Elsinore, DO HEREBY CERTIFY that the foregoing Resolution duly adopted by the City Council of the City of Lake Elsinore at a regular meeting of said Council on the 26th day of February, 1991, and that it was so adopted by the following vote: AYES: COUNCILMEMBERS: DOMINGUEZ, STARKEY, WINKLER, WASHBURN NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: BUCK ABSTAIN: COUNCILMEMBERS: NONE VICKI LYNtTE SAD, CITY CLERK CITY OF LAKE ELSINORE (SEAL) STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) SS: CITY OF LAKE ELSINORE ) I, Vicki Lynne Kasad, City Clerk of the City of Lake Elsinore, DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of Resolution No. 91 -19 of said Council, and that the same has not been amended or repealed. : February 27, 1991 �u vcau, CITY OF LA' ELSINORE (SEAL) ID►. • IC DESCRIP'T'ION OF FACILITIES TO BE FINANCED BY THE DISTRICT City of Lake Elsinore Community Facilities District No. 91 -2 (Summerhill Public Improvements) FACILITIES: 1. Grading. The grading for the public streets, public access roads and public utilities within and for the District. 2. Street Improvements. The street improvements consist of the curbs, gutters, sidewalks, paving, street lights, storm drain and utilities in the public streets and public easements within and in the vicinity of the District. 3. Domestic Water. The domestic water system consists of a reservoir, pumping station, distribution mains and appurtenances in the public streets and public easements within and in the vicinity of the District. 4. Sanitary Sewer. The sanitary sewer system consists of the gravity sewers, manholes, and appurtenances in the public streets and public utility easements within and in the vicinity of the District. 5. Parks and Recreation Facilities. The parks and recreation facilities within and for the district consist of the grading, landscaping, irrigation, walkways, apparatus, facilities and appurtenances. OTHER: 1. Costs of engineering, design, planning and coordination related to the above - listed facilities. 2. Bond related expenses, including bond counsel and all other incidental expenses. 3. Administrative fees of the City, the Lake Elsinore Public Financing Authority and any Bond fiscal agent related to the District and the Bonds. Gil � Ili i RATE AND METIIOD OF APPORTIONMENT OF SPECIAL TAXES CITY OF LAKE ELSINORE Community Facilities District No. 91 -2 (Summerhill Public Improvements) A special tax shall be levied on each Parcel of land within the City of Lake Elsinore Community Facilities District No. 91 -2 (Summerhill Public Improvements)(the "District "), and collected according to the special tax liability determined by the Responsible Party of the City of Lake Elsinore (the "City") through the application of the following procedures. All of the property within the District, unless otherwise exempted by law or the express provisions of the rate and method of apportionment expressed below, shall be taxed to the extent and in the manner provided below. It is intended that all special taxes applicable to Parcels within Category I, Category III or Category V be collected in the same manner and at the same time as ordinary ad valorem property taxes, and that special taxes so levied will be subject to the same penalties and procedures, sale and lien priority in case of delinquency as is provided for ad valorem taxes, subject to any covenant of the City with respect thereto in any Fiscal Agent Agreement for any bonds of the City for the District. Special taxes applicable to Categories II and IV will be levied at the times described below, and will be collected directly by the Responsible Party of the City as described below. CATEGORIES OF SPECIAL TAX CATEGORY I: Category I includes all Taxable Property in the District not subject to a special tax under Category III or Category V. The Category I special tax will be levied annually. Lot number 238 of Tract 20705 will be subject to special tax under Category I until Dwelling Units in lot number 238 are subject to Category V special tax or until other than multiple - family residences are approved for lot number 238. Lot number 239 of Tract 20705 will be subject to special tax under Category I until Dwelling Units in lot number 239 are subject to Category V special tax or until other than multiple - family residences are approved for lot number 239. The maximum special tax that may be levied on Parcels within Category I during the Fiscal Year ending June 30, 1991 is $20,000 per acre (said amount to be levied pro rata for any portion of an acre) of a Parcel. Said maximum special tax shall increase each Fiscal Year thereafter by 2 %, compounded annually. reports \lakelsin \summerhl \rate &met.91 -2 B -1 7 �� CATEGORY II: The Category Il special tax is a one -time tax, payable at the time of approval of a final map with respect to a Parcel. Special Tax for Each The Category II special tax is calculated by subtracting the number of Parcels shown on the final map from the number of estimated Parcels in a track as shown in the following table. The applicable special tax is calculated by multiplying the difference by the tax rate described in the table below. If the boundaries of the tracts shown in any final map are not the same as the expected boundaries as shown on the map attached hereto and by this reference incorporated herein, the Responsible Party will reapportion the Projected Developable Parcels as shown in the table below to the actual land area of the final map in such a way that there is no loss of Parcels. The special tax rate applicable to such a tract will be the highest rate applicable to any one of its component tracts as shown in the table below. The special tax rates shown in this table are for the Parcels for which a final map is recorded in the Fiscal Year ending June 3.0, 1991. The special tax rate for Parcels for which a final map is recorded in subsequent years shall increase each Fiscal Year thereafter by 2 %, compounded annually. reports \lakelsin \summerhl \rate &mct.91 -2 B -2 ,rn CATEGORY H Special Tax for Each Developable Parcel by Projected Which Final map is Less Developable Than the Projected Tract No. Parcels Developable Parcels 20704 1 226 $23,205 20705 236 $269786 (except Lot no. 238 and Lot no. 239) The special tax rates shown in this table are for the Parcels for which a final map is recorded in the Fiscal Year ending June 3.0, 1991. The special tax rate for Parcels for which a final map is recorded in subsequent years shall increase each Fiscal Year thereafter by 2 %, compounded annually. reports \lakelsin \summerhl \rate &mct.91 -2 B -2 ,rn CATEGORY III: Any Parcel for which a final map has been recorded and for which Category II special taxes have been paid, if applicable, will be classified in Category III, until such time as a building permit has been issued. If Category II special taxes are applicable to the Parcel but have not been paid when due, such Parcels on a final map will continue to be classified in Category I. The maximum special tax applicable to Parcels in Category III is shown below for the Fiscal Year ending June 30, 1991. The maximum special tax rate for the Parcels classified in Category III shall increase each Fiscal Year thereafter by 2 %, compounded annually. If the boundaries of a tract shown in any final map are not the same as the expected boundaries shown for such tract on the map attached hereto, the maximum special tax applicable to Parcels in such tract will be the highest maximum special tax applicable to any one of its component prior tracts based on the attached map and as shown in the table below. mporta \lakelsin \mmmerhl \mte &met.91 -2 B -3 :ice / n CATEGORY III Tract No. Maximum Special Tax 20704 $37090 20705 $3,565 mporta \lakelsin \mmmerhl \mte &met.91 -2 B -3 :ice / n CATEGORY IV: The Category IV special tax is a one -time tax payable at the time of the issuance of a building permit, based on the calculation of Category IV special tax per the following schedule. The applicable special tax per Parcel or Dwelling Unit is calculated as shown in the following table, based on the average projected square foot per Parcel or Dwelling Unit as shown below. CATEGORY IV Lot no. 238 I 1,250 Lot no. 239 Projected Developable Dwelling Units 224 If the boundaries of the tract shown in any final map are not the same as the expected boundaries shown for such tract on the attached map, the average projected square footage per Parcel will be the highest average projected square footage for any of its component tracts as shown on the attached map. reports \lakelsin \su mmerhl \rate &mct.91 -2 Ie F s:. Average Projected Square Feet Tract No. per Parcel 20704 2,149 20705 2,200 (except Lot no. 238 and Lot no. 239) Average Projected Tract No. Square Feet 20705 per Dwelling Unit Lot no. 238 I 1,250 Lot no. 239 Projected Developable Dwelling Units 224 If the boundaries of the tract shown in any final map are not the same as the expected boundaries shown for such tract on the attached map, the average projected square footage per Parcel will be the highest average projected square footage for any of its component tracts as shown on the attached map. reports \lakelsin \su mmerhl \rate &mct.91 -2 Ie F s:. Tract No.: CALCULATION OF CATEGORY IV TAX Item 1. 1. Average Projected Square Feet per Parcel or Dwelling Unit 2. 2. Number of Building Permits Already Issued 3. 3. Square Feet of Building Permits Already Issued 4. 4. Number of Building Permits Requested 5. 5. Square Feet of Building Permits Requested 6. 6. Total of Items 2 and 4 7. 7. Total of Items 3 and 5 8. 8. Average Square Feet To -Date (Item 7 divided by Item 6) 9. 9. If Item 8 is Equal to or Greater than Item 1, There is no Tax Due 10. 10. Item 1 minus Item 8 11. 11. Item 10 Multiplied by Item 6 12. 12. Applicable Category V Square Foot Special Tax 13. 13. Item 11 Multiplied by Item 12 14. 11.58 14. Present Value Factor 15. 15. Item 13 Multiplied by Item 14 16. 16. Amount Previously Paid in Tract (from prior calculations) 17. 17. Item 15 minus Item 16 18. 18. One -Time Tax per Parcel or Dwelling Unit on Building Permits Being Requested (Item 17 divided by Item 4) reports \lakelsin \summerhl \ratc &met.91 -2 B -5 CATEGORY V: Category V includes all Parcels or Dwelling Units for which a building permit has been issued and for which a Category II and IV special tax has been paid, if applicable. If for any reason a Category II or IV special tax is or was payable, but not paid when due, Parcels and Dwelling Units for which a building permit has been issued will be taxed at the rates applicable to Taxable Property described in Category I. The maximum special tax for Parcels and Dwelling Units described in Category V for the Fiscal Year ending June 30, 1991 is the total of $515.00 per Parcel or Dwelling Unit plus $0.76 per Square Foot for each Square Foot shown on the building permit. Each Fiscal Year thereafter, the per Parcel or Dwelling Unit and the per Square Foot rate listed above will increase by 2 %, compounded annually. A Parcel or Dwelling Unit will be subject to the Category V special tax for not more than 30 years. ASSIGNMENT TO CATEGORIES; LEVY ANNUAL TAX CATEGORIES On or about July 1 of each year, but in any event in sufficient time to include the levy of the special taxes on the County's secured tax roll, the Responsible Party shall determine, for each Parcel of land or Dwelling Unit within the District, whether such Parcel or Dwelling Unit is described by Category I, Category III or Category V. The Parcels and Dwelling Units subject to levy shall be determined based upon the records of the Riverside County Assessor as of the March 1 preceding such July 1, and the Tax Category shall be determined based upon the status of the Parcel or Dwelling Unit as of the May 1 preceding such July 1. The Responsible Party shall then determine the estimated aggregate Tax Liability for the Fiscal Year commencing such July 1, and the amount of annual special taxes to be levied on each Parcel and Dwelling Unit in the District during such Fiscal Year. The annual special taxes shall be determined for each Parcel or Dwelling Unit in the District as follows: 2. If the aggregate amount to be levied based on 1 above is greater than the aggregate Tax Liability for such Fiscal Year, reduce the special tax for each Parcel and Dwelling Unit described in Category V proportionately, so that the aggregate special tax levy for such Fiscal Year for all Parcels and Dwelling Units within the District is equal to the aggregate Tax Liability for such Fiscal Year. reports \lakelsin \summerhl \ralc &meL91 -2 B-6 1. Levy on each Parcel or Dwelling Unit described in Category V an amount equal to 94% of the Category V maximum special tax. 2. If the aggregate amount to be levied based on 1 above is greater than the aggregate Tax Liability for such Fiscal Year, reduce the special tax for each Parcel and Dwelling Unit described in Category V proportionately, so that the aggregate special tax levy for such Fiscal Year for all Parcels and Dwelling Units within the District is equal to the aggregate Tax Liability for such Fiscal Year. reports \lakelsin \summerhl \ralc &meL91 -2 B-6 3. If the aggregate amount to be levied based on 1 above is less than the aggregate Tax Liability for such Fiscal Year, levy on each Parcel and Dwelling Unit described in Category V as provided in 1 above, and levy on each Parcel described in Category III an amount equal to 75% of the Category III maximum special tax. 4. If the aggregate amount to be levied based upon 3 above is greater than the aggregate Tax Liability for such Fiscal Year, reduce the special tax levy for each Parcel described in Category III proportionately, until the aggregate special tax levy for such Fiscal Year for all Parcels within the District is equal to the aggregate Tax Liability for such Fiscal Year. 5. If the aggregate amount to be levied based upon 3 above is less than the aggregate Tax Liability for such Fiscal Year, levy as described in 3 above, and levy on each Parcel described in Category I an amount equal to 50% of the Category I maximum special tax. 6. If the aggregate amount to be levied based upon 5 above is greater than the aggregate Tax Liability for such Fiscal Year, reduce the special tax levy for each Parcel described in Category I proportionately, until the aggregate special tax levy for such Fiscal Year for all Parcels within the District is equal to the aggregate Tax Liability for such Fiscal Year. 7. If the aggregate amount to be levied based upon 5 above is less than the aggregate Tax Liability for such Fiscal Year, levy on each Parcel and Dwelling Unit described in Category V an amount equal to 100% of the Category V maximum special tax, levy on each Parcel described in Category III an amount equal to 75 % of the Category III maximum special tax, and levy on each Parcel described in Category I an amount equal to 50% of the Category I maximum special tax. 8. If the aggregate amount to be levied based upon 7 above is greater than the aggregate Tax Liability for such Fiscal Year, reduce the special tax levy for each Parcel and Dwelling Unit described in Category V proportionately, until the aggregate special tax liability for such Fiscal Year for all Parcels and Dwelling Units within the District is equal to the aggregate Tax Liability for such Fiscal Year. 9. If the aggregate amount to be levied based upon 7 above is less than the aggregate Tax Liability for such Fiscal Year, levy on each Parcel and Dwelling Unit described in Category V or Parcel described in Category III an amount equal to 100% of the Category V or Category III, respectively, maximum special tax, and levy on each Parcel described in Category I an amount equal to 50% of the Category I maximum special tax. 10. If the aggregate amount to be levied based upon 9 above is greater than the aggregate Tax Liability for such Fiscal Year, reduce the special tax levy for each Parcel described in Category III proportionately, until the aggregate special tax liability for such Fiscal Year for all parcels within the District is equal to the aggregate Tax Liability for such Fiscal Year. reports\ iakelsin \summeriil\ratc &met.91 -2 B -7 11. If the aggregate amount to be levied based upon 9 above is less than the aggregate Tax Liability for such Fiscal Year, levy on each Parcel described in Category I, III or V or Dwelling Unit described in Category V an amount equal to the maximum special tax described in Category I, II1 or V, respectively. 12. If the aggregate amount to be levied based upon 11 above is greater than the aggregate Tax Liability for such Fiscal Year, reduce the special tax levy for each Parcel described in Category I proportionately, until the aggregate special tax liability for such Fiscal Year for all Parcels within the District is equal to the aggregate Tax Liability for such Fiscal Year. ONE -TEWE TAX CATEGORIES On the date of approval of a final map with respect to any portion of the real property in the District, the Responsible party shall levy and collect a special tax in the amount described above for Category II. On the date a building permit is issued for any Parcel or Dwelling Unit within the District, the Responsible Party shall levy and collect a special tax in the amount described above for Category IV. Failure to pay a Category lI or Category IV special tax when due shall result in the applicable Parcel or Dwelling Unit remaining subject to a Category I special tax, notwithstanding that the Parcel would otherwise be described in Category III or Category V. PREPAYMENTS Prepayments may be made only for property subject to tax under Category V. Any property owner in the District that desires to prepay the annual special taxes on a particular Parcel or Dwelling Unit, shall notify the Responsible Party in writing of such intention and the estimated amount of prepayment no more than sixty (60) days and no less than forty-five (45) days prior to date of such prepayment, which date (the Prepayment Date) shall be a date which is sixty (60) days prior to an interest payment date for the Bonds. The entire annual special taxes for any Parcel or Dwelling Unit in the District may be prepaid on a Prepayment Date as follows: (a) The Parcel or Dwelling Unit with respect to which prepayment is to be made must not be delinquent in any payment of special taxes previously levied within the District. Prepayment shall not relieve any property owner from paying those special taxes which have already become due and payable, and a Notice of Cessation of Special Tax Lien shall not be recorded against any Parcel or Dwelling Unit pursuant to California Government Code Section 53344, until all special taxes with respect to that Parcel or Dwelling Unit have been paid. reports` •!akelsin \summerhl \ntc &mct.91 -2 B -8 (b) The aggregate maximum annual special taxes for the Parcel or Dwelling Unit with respect to which prepayment is to be made, as of the Prepayment Date, shall be calculated based upon the maximum annual special taxes described by Category V that could be levied on that Parcel or Dwelling Unit in all future years. (c) The net present value of the future annual special taxes calculated above will be determined based on an interest rate of eight percent (8 %), which may be decreased or increased by the Responsible Party to reflect the net interest costs on the Bonds. (d) Any applicable prepayment premium on the Bonds shall be applied to the aggregate amount determined under (c) above. (e) The amount to be prepaid for any Parcel or Dwelling Unit of property shall be the sum of the amounts calculated for that Parcel or Dwelling Unit under paragraphs (c) and (d) above, plus the reasonable costs and expenses of performing the calculations, preparing and recording the Notice of Cessation of Special Tax Lien and any other acts or procedures required to be performed in connection with the prepayment, as determined by the Responsible Party. DEFINPI'IONS Administrative Fees or Expenses means any or all of the following: the fees and expenses of the Fiscal Agent (including any fees or expenses of its counsel), the expenses of the City in carrying out its duties with respect to the District (including, but not limited to, the levy and collection of the special taxes) including the fees and expenses of its counsel, any fees of the County of Riverside related to the District or the collection of special taxes, an allocable share of the salaries of the City staff directly related thereto and a proportionate amount of City general administrative overhead related thereto, any amounts paid by the City from its general funds with respect to the District or the Bonds, and all other costs and expenses of the City or the Fiscal Agent incurred in connection with the discharge of their respective duties under the Fiscal Agency Agreement and, in the case of the City, in any way related to administration of the District. Bonds means any bonds of the City issued for the District under Mello -Roos Community Facilities Act of 1982, as amended. City means the City of Lake Elsinore. Debt Service, for each Fiscal Year, is the total annual principal and interest payment on the Bonds during the calendar year which commences in such Fiscal Year, less any capitalized interest and any other amounts remaining in the debt service fund held under the Fiscal Agent Agreement as of the end of the previous Fiscal Year (other than by reason of the payment of Category II and IV special taxes). reports\ lakeisin \summerhl�.ratc &met.91 -2 B -9 :7_ District means the City of Lake Elsinore Community Facilities District No. 91 -2 (Summerhill Public Improvements). Dwelling Unit means only dwelling units from Lot no. 238 of Tract 20705 or Lot no. 239 from Tract 20705. Fiscal Agent means the Fiscal Agent under the Fiscal Agent Agreement. Fiscal Agent Agreement means the agreement by that name approved by the Resolution of Issuance, and as it may be amended and /or supplemented from time to time. Fiscal Year means the period starting on July 1 and ending the following June 30. Parcel means any Riverside County Assessor's Parcel or portion thereof that is within the boundaries of the District based on the equalized tax rolls of the County of Riverside. Resolution of Issuance is any Resolution adopted by the City authorizing the issuance of Bonds. Responsible Party is any person or persons who the City may appoint from time to time to compute the levy of the special taxes within the District. Square Foot or Square Feet is the square footage of a single family dwelling unit measured at the exterior walls, but excluding (i) garages, carports, roof overhangs, passageways and patios which are both unenclosed and uncovered, and (ii) tool sheds, greenhouses and similar detached structures. Tax Categories are those categories set forth in the body hereof. Tax Liability for any Fiscal Year is an amount sufficient to pay Debt Service for such Fiscal Year, Administrative Fees or Expenses for such Fiscal Year, an amount determined by the Responsible Party to offset past delinquencies and projected tax delinquencies to occur in such Fiscal Year, and all payments required to be made in the applicable Fiscal Year under the Fiscal Agent Agreement for the Bonds and any supplements thereto. Taxable Property is all real property within the boundaries of the District which is not exempt from the special tax pursuant to law, except that the following property shall not be taxed: any acres of land owned, conveyed or irrevocably offered for dedication to a public agency (other than the Federal Government or agency deriving its authority from Federal law (such as the Resolution Trust Corporation)), or land which is a public right of way or which is an unmanned utility easement making impractical its utilization for other than the purpose set forth in the easement. reports\ lakelsin \summerhl \ratc &mct.91 -2 B-10 PROPOSED FACILITIES PLAN CITY OF LAKE ELSINORE C0MMU-NIT'Y FACILITIES DIS'T'RICT N0. 91 -2 (SUMMERHILL PUBLIC IMPROVEMENTS) COUNTY OF RIVERSIDE, CALIFORNIA I I I I z -` O j- 0 / h Lo 10� a z I U ^0 O vTY i N os 0 PROJECT SiE \ N i i /l 0)07n / R 25 SJ�YA Qp� A tiT 4? / NO SCALE 0 R 20]04 0 Q FO^q RATAN D CANYON ROAD O= �/ : LaRESNORE �y1 p� is z VICINITY MAP •� NO SCALE R? ( �.'m v Y�� a� n: NOTICE OF PUBLIC HEARING City of Lake Elsinore Community Facilities District No. 91 -2 (Summerhill Public Improvements) Notice is hereby given that on February 26, 1991, the City Council of the City of Lake Elsinore adopted a Resolution entitled "A Resolution of Intention To Establish A Community Facilities District And To Authorize The Levy Of Special Taxes Pursuant To The Mello -Roos Community Facilities Act Of 1982 ". Pursuant to the Mello -Roos Community Facilities Act of 1982 (the "Act "), the City Council hereby gives notice as follows: A. The text of said Resolution of Intention is as follows: RESOLVED by the City Council of the City of Lake Elsinore (the "City ") that: WHEREAS, under the Mello -Roos Community Facilities Act of 1982, as amended (the "Act "), Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing at Section 53311, of the California Government Code, this City Council may act as the legislative body for proposed community facilities districts and is empowered with the authority to establish community facilities districts; and WHEREAS, this City Council has received a petition requesting that this City Council establish a community facilities district under the Act; and WHEREAS, there has been presented to this City Council a form of Agreement Regarding Advances (the "Agreement "), whereby one of the landowners within the proposed community facilities district is willing to advance the funds necessary to form the district; and WHEREAS, this City Council, with the aid of City staff, has reviewed the Petitions and the Agreement and found them to be in proper form and now desires to proceed with the establishment of a community facilities district under the Act. NOW, THEREFORE, IT IS HEREBY ORDERED as follows: 1. This City Council proposes to conduct proceedings to establish a community facilities district pursuant to the Act. 2. This City Council hereby acknowledges receipt of a petition (the "Petition ") of Friedman Homes, Inc. to form a community facilities district (the "District ") in the Summerhill area of the City. 3. This City Council hereby approves the Agreement, in the form submitted to this City Council at this meeting or with such changes thereto as shall be approved by the Director of Administrative Services, and authorizes and directs the Director of Administrative Services to execute and deliver the Agreement and C -i accept and expend the deposit referred to therein in the manner specified in the Agreement. 4. The name proposed for the District is City of Lake Elsinore Community Facilities District No. 91 -2 (Summerhill Public Improvements). 5. The proposed boundaries of the District are as shown on the map of the District on file with the City Clerk, which boundaries are hereby preliminarily approved and to which map reference is hereby made for further particulars. The City Clerk is hereby directed to record, or cause to be recorded, said map of the boundaries of the District in the office of the County Recorder within fifteen days of the date of adoption of this Resolution. 6. The type of public facilities proposed to be financed by the District and pursuant to the Act shall consist of those items listed as facilities (the "Facilities ") on Exhibit A hereto, which exhibit is by this reference incorporated herein. 7. Except to the extent that funds are otherwise available to the District to pay for the Facilities and/or the principal and interest as it becomes due on bonds of the District issued to finance the Facilities, a special tax sufficient to pay the costs thereof, secured by recordation of a continuing lien against all non - exempt real property in the District, is intended to be levied annually within the District, and collected in the same manner as ordinary ad valorem property taxes. The proposed rate and method of apportionment of the special tax among the parcels of real property within the District, in sufficient detail to allow each landowner within the proposed District to estimate the maximum amount such owner will have to pay, are described in Exhibit B attached hereto, which exhibit is by this reference incorporated herein. 8. It is the intention of this City Council acting as the legislative body for the District to cause bonds of the City to be issued for the District pursuant to the Act to finance in whole or in part the Facilities. Said bonds shall be in the aggregate principal amount of not to exceed $17,500,000, shall bear interest payable semi- annually or in such other manner as this City Council shall determine, at a rate not to exceed the maximum rate of interest as may be authorized by applicable law at the time of sale of such bonds, and shall mature not to exceed 40 years from the date of the issuance thereof. 9. The levy of said proposed special tax shall be subject to the approval of the qualified electors of the District at a special election. The proposed voting procedure shall be by mailed or hand- delivered ballot among the landowners in said proposed District, with each owner having one vote for each acre or portion of an acre such owner owns in the District. 10. Except as may otherwise be provided by law or by the rate and method of apportionment of the special taxes set forth in Exhibit B, all lands owned by any public entity, including the United States, the State of California and/or the City, or any departments or political subdivisions thereof, shall be omitted from the levy of the special tax to be made to cover the costs and expenses of the Facilities. In the event that a portion of the property within the District shall become for any reason exempt, wholly or in part, from the levy of the special tax described in Exhibit B, this City Council will, on behalf of the District, increase the levy to the extent necessary upon the remaining property within the District which is not exempt in C -2 order to yield the required debt service payments and other annual expenses of the District, if any, subject to any maximum special tax that may be levied. 11. The Director of Public Works of the City of Lake Elsinore, as the officer having charge and control of the Facilities in and for the District, is hereby directed to study said proposed Facilities and to make, or cause to be made, and file with the City Clerk a report in writing, presenting the following: (a) A description of the Facilities by type which will be required to adequately meet the needs of the District. (b) An estimate of the fair and reasonable cost of financing the Facilities including the cost of acquisition of lands, rights -of -way and easements, any physical facilities required in conjunction therewith and incidental expenses in connection with said financing, including the costs of the proposed bond financing and all other related costs as provided in Section 53345.3 of the Act. Said report shall be made a part of the record of the public hearing provided for below. 12. Tuesday, April 9, 1991, at 7:00 p.m., in the regular meeting place of this City Council, in the School Board meeting room of the Lake Elsinore Unified School District, 545 Cheney Street, Lake Elsinore, California, be, and the same are hereby appointed and fixed as the time and place when and where this City Council, as legislative body for the District, will conduct a public hearing on the establishment of the District and consider and finally determine whether the public interest, convenience and necessity require the formation of the District and the levy of said special tax. 13. The City Clerk is hereby directed to cause notice of said public hearing to be given by publication one time in a newspaper published in the area of the District. The publication of said notice shall be completed at least seven days before the date herein set for said hearing. Said notice shall be substantially in the form of Exhibit C hereto. 14. The law firms of Jones Hall Hill & White, A Professional Law Corporation, and Brown, Harper, Burns & Hentschke are hereby designated as co- bond counsel to the City in connection with the formation of the District and the special tax bonds expected to be issued by the City for the District. The Director of Administrative Services of the City or his designee is hereby authorized to execute and deliver agreements with said firms for services in connection with the District and said bonds in the forms on file with the City Clerk. 15. First California Capital Markets Group is hereby designated as financing consultant to the City in connection with the establishment of the District and the issuance of special tax bonds of the City for the District. The Director of Administrative Services is hereby authorized to execute and deliver an agreement with said firm for its services in connection with the District. 16. The firm of BSI Consultants, Inc. is hereby designated as District Engineer and Special Tax consultant to the City in connection with the District. The Director of Administrative Services is hereby authorized and directed to C -3 execute and deliver agreement with said firm for its services in connection with the District. B. The time and place established under said Resolution for the public hearing required under the Act are Tuesday, April 9, 1991, at the hour of 7:00 p.m., in the regular meeting place of the City Council of the City of Lake Elsinore, in the School Board meeting room of the Lake Elsinore Unified School District, 545 Cheney Street, Lake Elsinore, California. C. At said hearing, the testimony of all interested persons or taxpayers for or against the establishment of the district, the extent of the district or the furnishing of the specified types of facilities will be heard. Any person interested may file a protest in writing as provided in Section 53323 of the Act. If the owners of one -half or more of the area of land in the territory proposed to be included in the district file written protests against the establishment of the district and the protests are not withdrawn to reduce the value of the protests to less than a majority, the City Council shall take no further action to establish the district for period of one year from the date of said hearing, and if the majority protests of the landowners are only against the furnishing of a type or types of facilities within the district, or against levying a specified special tax, those types of facilities or the specified special tax will be eliminated from the proceedings to form the district. D. The proposed voting procedure shall be by special mail or hand - delivered ballot to the property owners within the territory proposed to be included in the district. Dated: March 11991 C -4 /s/ Vicki Kasad City Clerk, City of Lake Elsinore