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HomeMy WebLinkAboutOrd. No. 2008-1244 ORDINANCE NO. 1244 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF THE CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2007-6 (HOLIDAY INN EXPRESS), AUTHORIZING THE LEVY OF A SPECIAL TAX WHEREAS, on December 11, 2007, the City Council (the "Council") of the City of Lake Elsinore (the "City") adopted Resolution No. 2007-205 stating its intention to form the City of Lake Elsinore Community Facilities District No. 2007-6 (Holiday Inn Express) (the "CFD") pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the "Act"), to finance the purchase, construction, expansion or rehabilitation of certain real and other tangible property with an estimated useful life of five years or longer, including public infrastructure facilities and other governmental facilities, which the City is authorized by law to construct, own or operate (the "Facilities"); and WHEREAS, notice was published as required by law relative to the intention of the Council to form the CFD; and - WHEREAS, on January 22, 2008, this Council held a noticed public hearing as required by law relative to the determination to proceed with the formation of the CFD, and the rate and method of apportionment and manner of collection of the special tax to be levied within the CFD; and WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the formation of the CFD were heard and a full and fair hearing was held; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2008- 17 determining the validity of prior proceedings and established the CFD; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2008- 18 which called an election within the CFD for January 22, 2008 on the levying of a special tax; and WHEREAS, on January 22, 2008, an election was held within the CFD in which the eligible electors approved by more than two-thirds vote the proposition of levying a special tax. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. A special tax (the "Special Tax") is levied within the boundaries of the CFD pursuant to the formulas set forth in Exhibit A attached hereto in an amount 1 necessary to pay all of the costs of providing the Facilities, periodic costs, and costs of the tax levy and collection, and all other costs including amounts payable with respect to any bonded indebtedness. SECTION 2. Pursuant to Section 53340 of the Act, this legislative body may provide, by resolution, for the levy of the Special Tax in the current tax year or future tax years at the same rate or at a lower rate than the rate provided by ordinance. SECTION 3. All of the collections of the Special Tax shall be used as provided for in the Act and Resolution No. 2008- 17 (Resolution of Formation). SECTION 4. The above authorized Special Tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall be subject to the same penalties and the same procedure and sale in cases of delinquency and provided for ad valorem taxes; provided, however, the CFD may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations. SECTION 5. If any provision, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. SECTION 6. The Mayor shall sign this ordinance and the City Clerk shall attest to such signature. The City Clerk is directed to cause the title and summary or text of the this ordinance, together with the vote thereon, to be published within fifteen (15) days after its passage at least once in a newspaper of general circulation published and circulated within the territorial jurisdiction of the City, and to post at the main office of the City a certified copy of the full text of the adopted ordinance along with the names of the council Members voting for and against the ordinance. SECTION 7. This ordinance relating to the levy of the Special Tax takes effect and shall be in force from and after 30 days from the date of final passage. A copy of this ordinance shall be transmitted to the Clerk of the Board of Supervisors of Riverside County, the Assessor and the Treasurer-Tax Collector of Riverside County. 2 PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, on this 12th day of February 2008. Atl .L~ VIVIAN M. MUNSON CITY CLERK STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE )ss. CITY OF LAKE ELSINORE ) I, VIVIAN M. MUNSON, City Clerk of the City of Lake Elsinore, California, hereby certify' that the foregoing Ordinance No. 1244 was introduced at a regular meeting of the City Council of the City of Lake Elsinore on the 22nd day of January 2008, and was finally passed at a regular meeting of the City Council of the City of Lake Elsinore held on the 12th day of February 2008, by the following roll call vote: AYES: MAYOR PRO TEM KELLEY, COUNCILMEMBER BUCKLEY, COUNCILMEMBER MAGEE, COUNCILMEMBER SCHIFFNER NOES: NONE ABSENT: MAYOR HICKMAN ABST AI N: NONE [ LL~ VIVIAN M. MUNSON CITY CLERK 3 EXHIBIT A RATE AND METHOD OF APPORTIONMENT FOR COMMUNITY FACILITIES DISTRICT NO. 2007-6 OF THE CITY OF LAKE ELSINORE (HOLIDAY INN EXPRESS) The following sets forth the Rate and Method of Apportionment for the levy and collection of Special Taxes of the City of lake Elsinore Community Facilities District No. 2007-6 (Holiday Inn Express) ("CFD No. 2007-6"). The Special Tax shall be levied on and collected each Fiscal Year, in an amount determined through the application of the Rate and Method of Apportionment described below. All of the real property within CFD No. 2007 -6 unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided. SECTION A DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable Final Map, parcel map, condominium plan, or other recorded County parcel map or similar instrument. The square footage of an Assessor's Parcel is equal to the Acreage multiplied by 43,560. "Act" means the Mello-Roos Communities Facilities Act of 1982, as amended, being Chapter 2.5, Part 1 of Division 2 of Title 5 of the Government Code of the State of California. "Approved Property" means all Assessor's Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1 st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a building permit on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied. "Assessor's Parcel" means a lot or parcel shown on an Assessor's Parcel Map with an assigned Assessor's Parcel Number valid at the time the Special Tax is enrolled for the Fiscal Year for which the Special Tax is being levied. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor's Parcel Number. "Assessor's Parcel Number" means that number assigned to an Assessor's Parcel by the County for purposes of identification. "Assigned Special Tax" means the Special Tax of that name described in Section 0 below. City of Lake Elsinore Community Facilities District No. 2007-6 (Holiday Inn Express) November 27,2007 Page 1 "Backup Special Tax" means the Special Tax of that name described in Section E below. "Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, notes, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which Special Taxes for Facilities within CFD No. 2007-6 have been pledged. "Calendar Year" means the period commencing January 1 of any year and ending the following December 31. "CFD Administrator" means an official of the City, or designee thereof, responsible for (i) determining the Special Tax Requirement for Facilities, (ii) determining the Special Tax Requirement for Services, as defined in Section L, as applicable, and (iii) providing for the levy and collection of the Special Taxes. "CFD No. 2007-6" means Community Facilities District No. 2007-6 (Holiday Inn Express) established by the City under the Act. "City" means the City of Lake Elsinore. "City Council" means the City Council of the City of Lake Elsinore, acting as the Legislative Body of CFD No. 2007-6, or its designee. "County" means the County of Riverside. "Developed Property" means all Assessor's Parcels of Taxable Property, not classified as Approved Property, Undeveloped Property, Provisional Undeveloped Property that are not Exempt Property pursuant to the provisions of Section I. below: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) a building permit for new construction has been issued on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied. "Exempt Property" means all Assessor's Parcels designated as being exempt from Special Taxes pursuant to Section I, below. "Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots for which building permits may be issued without further subdivision. "Fiscal Year" means the period commencing on July 1 of any year and ending the following June 30. "Indenture" means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. City of Lake Elsinore Community Facilities District No. 2007-6 (Holiday Inn Express) November 27, 2007 Page 2 "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C, that can be levied by CFD No. 2007-6 in any Fiscal Yearon any Assessor's Parcel. "Proportionately" means that the ratio of the actual Special Tax levy to the applicable Assigned Special Tax is equal for all applicable Assessor's Parcels. In case of Developed Property subject to the apportionment of the Special Tax under step four of Section F, "Proportionately" in step four means that the quotient of (a) actual Special Tax less the Assigned Special Tax divided by (b) the Backup Special Tax less the Assigned Special Tax, is equal for all applicable Assessor's Parcels. "Provisional Undeveloped Property" means all Assessor's Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section I, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Section I. "Special Tax" means any of the special taxes authorized to be levied by CFD No. 2007-6 pursuant to the Act. "Special Tax Requirement" means $5,000 for FY 2008-09, and on each July 1, commencing July 1, 2009, shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. "Taxable Property" means all Assessor's Parcels within the boundaries of CFD No. 2007- 6, which have are not Exempt Property. "Trustee" means the trustee, fiscal agent, or paying agent under the Indenture. "Undeveloped Property" means all Assessor's Parcels of Taxable Property which are not Developed Property, Approved Property or Provisional Undeveloped Property. SECTION B CLASSIFICATION OF ASSESSOR'S PARCELS Each Fiscal Year, beginning with Fiscal Year 2008-09, each Assessor's Parcel within CFD No. 2007-6 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor's Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property. SECTION C MAXIMUM SPECIAL TAX FOR FACILITIES 1. Developed Property The Maximum Special Tax for each Assessor's Parcel of Developed Property in any Fiscal Year shall be the greater of (i) the Assigned Special Tax or (ii) the Backup Special Tax. City of Lake Elsinore November 27. 2007 Community Facilities District No. 2007-6 (Holiday Inn Express) Page 3 2. Approved Property. Undeveloped Property and Provisional Undeveloped Property The Maximum Special Tax for each Assessor's Parcel classified as Approved Property, Undeveloped Property, or Provisional Undeveloped Property in any Fiscal Year shall be the applicable Assigned Special Tax. SECTION 0 ASSIGNED SPECIAL TAX FOR FACILITIES 1. Developed Property Each Fiscal Year, each Assessor's Parcel of Developed Property shall be subject to an Assigned Special Tax. The Assigned Special Tax applicable to an Assessor's Parcel of Developed Property for Fiscal Year 2008-09 shall be $3,401.36 per Acre. 2. Approved Property. Undeveloped Property and Provisional Undeveloped Property Each Fiscal Year, each Assessor's Parcel of Approved Property, Undeveloped Property and Provisional Undeveloped Property shall be subject to an Assigned Special Tax. The Assigned Special Tax rate for an Assessor's Parcel classified as Approved Property, Undeveloped Property and Provisional Undeveloped Property for Fiscal Year 2008-09 shall be $3,401.46 per Acre. 3. Increase in the Assianed Special Tax On each July 1, commencing July 1, 2009, the Assigned Special Tax rate for Developed Property, Approved Property, Undeveloped Property and Provisional Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. SECTION E BACKUP SPECIAL TAX The Backup Special Tax shall be calculated annually based on the annual Special Tax Requirement. The Special Tax Requirement shall be apportioned to each Assessor's Parcel based on Acreage. City of Lake Elsinore Community Facilities District No. 2007-6 (Holiday Inn Express) November 27,2007 Page 4 SECTION F METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing Fiscal Year 2008-09 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property in accordance with the following steps: Step One: The Special Tax shall be levied on each Assessor's Parcel of Developed Property at up to 100% of the Maximum Special Tax rates for Developed Property. If the amount of Special Taxes generated is greater than the Special Tax Requirement, the Special Taxes for each Assessor's Parcel shall be reduced Proportionately until the total Special Taxes equal the Special Tax Requirement. Step Two: If additional moneys are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Approved Property at up to 100% of the Maximum Special Tax applicable to each such Assessor's Parcel as needed to satisfy the Special Tax Requirement. Step Three: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor's Parcel as needed to satisfy the Special Tax Requirement. Step Four: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to 100% of the Backup Special Tax as needed to satisfy the Special Tax Requirement. Step Five: If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Special Tax for Facilities shall be levied Proportionately on each Assessor's Parcel of Provisional Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor's Parcel as needed to satisfy the Special Tax Requirement. SECTION G PREPAYMENT OF SPECIAL TAX Prepayment of the special tax shall not be permitted. City of Lake Elsinore Community Facilities District No. 2007-6 (Holiday Inn Express) November 27, 2007 Page 5 SECTION H TERMINATION OF SPECIAL TAX The Special Tax shall cease not later than the 2047-2048 Fiscal Year, however, the Special Taxes will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all required interest and principal payments on Bonds for which the Special Tax has been pledged have been paid; (ii) all authorized facilities for CFD No. 2007-6 have been acquired, (iii) no delinquent Special Taxes remain uncollected and (iv) all other obligations of CFD No. 2007-6 have been satisfied. SECTION I EXEMPTIONS The City shall classify as Exempt Property, in order of priority, (i) Assessor's Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii) Assessor's Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor's Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by a homeowners' association, (iv) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (v) Assessor's Parcels which are privately owned and are encumbered by or restricted solely for public uses, or (vi) Assessor's Parcels restricted to other types of public uses determined by the City Council, provided that no such classification would reduce the sum of all Taxable Property to less than 1.47 Acres. Notwithstanding the above, the City Council shall not classify an Assessor's Parcel as Exempt Property if such classification would reduce the sum of all Taxable Property to less than 1.47 Acres. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than 1.47 Acres will be classified as Provisional Undeveloped Property, and will be subject to Special Taxes pursuant to Step Five in Section F. SECTION J MANNER OF COLLECTION OF SPECIAL TAX The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2007-6 may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor's Parcels as permitted by the Act. City of Lake Elsinore Community Facilities District No. 2007-6 (Holiday Inn Express) November 27,2007 Page 6 SECTION K APPEALS Any property owner claiming that the amount or application ofthe Special Tax is not correct may file a written notice of appeal with the CFD Administrator not later than twelve months after having paid the first installment of the Special Tax that is disputed. The CFD Administrator shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the CFD Administrator's decision requires that the Special Tax for an Assessor's Parcel be modified or changed in favor of the property owner, a cash refund shall not be made (except for the last year of levy), but an adjustment shall be made to the Special Tax on that Assessor's Parcel in the subsequent Fiscal Year(s). The City Council may interpret this Rate and Method of Apportionment for purposes of clarifying any ambiguity and make determinations relative to the annual administration and levy of the Special Taxes and any landowner or resident's appeals. Any decision of the City Council shall be final and binding as to all persons. City of Lake Elsinore Community Facilities District No. 2007-6 (Holiday Inn Express) November 27,2007 Page 7