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HomeMy WebLinkAboutOrd. No. 1998-1039 / .' ORDINANCE NO. 1039 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 98-1 AUTHORIZING THE LEVY OF A SPECIAL TAX WHEREAS, on April 28, 1998, the City Council (the "Council") of the City of Lake Elsinore, California (the "City") adopted Resolution No. 98-7 stating its intention to form the City of Lake Elsinore Community Facilities District No. 98-1 (the "District") pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, (the "Act"); and WHEREAS, on April 28, 1998, the Council also adopted Resolution No. 98-8 stating its intention and the necessity to incur bonded indebtedness in the amount of not to exceed $20,000,000 to be issued by the City on behalf of the District for the purpose of paying, prepaying, restructuring or defeasing the City of Lake Elsinore , Community Facilities District No. 91-2 (Summerhill Public Improvements) 1991 Special Tax Bonds and unpaid interest thereon (the "1991 Bonds"); and WHEREAS, notice was published as required by law relative to the intention of the Council to form the District and to incur bonded indebtedness in the amount not to exceed $20,000,000 within the boundaries of the District; and WHEREAS, on June 23, 1998, this Council held a noticed public hearing as required by law relative to the determination to proceed with the formation of the District, the rate and method of apportionment and manner of collection of the special tax to be levied within the District to pay the principal and interest on the proposed bonded indebtedness of the District and relative to the necessity for authorizing the bonds, the purpose for which the bonds are to be issued, the amount of the proposed debt, the maximum term of the bonds and the maximum annual rate of interest to be paid; and WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the formation of the District and the incurring of bonded indebtedness by the District were heard and a full and fair hearing was held; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 98-15 determining the validity of prior proceedings relative to the formation of the District, established the District and authorized the levy of a special tax within the District; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 98-16 which called an election within the District for July 14, 1998 on the proposition of incurring bonded indebtedness, levying a special tax and setting an appropriations limit; and DK09720/962858/266804.03_ ,- ./ , WHEREAS, on July 14, 1998, an election was held within the District in which the eligible electors approved by more than two- thirds vote the proposi tion of incurring bonded indebtedness, le~~ing a special tax, and setting an appropriations limit; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, acting as the legislative body of Community Facilities District No. 98-1, does ordain as follows: Section 1. A special tax is levied within the boundaries of the District pursuant to the formula set forth in Exhibit "A" attached hereto and incorporated by reference in an amount necessary to pay all of the principal and interest on the bonds proposed to be issued to pay, prepay, restructure or defease the 1991 Bonds and other costs of the refinancing or restructuring, including but not limited to all costs of the tax levy and bond issue. Section 2. This legislative body is hereby further authorized each year, by resolution adopted as provided in section 53340 of the Act, to determine the specific special tax rate and amount to be levied for the next fiscal year, except that the special tax rate to be levied shall not exceed the maximum rate set forth in Exhibit "A". Section 3. All of the collections of the special tax shall be used as provided for in the Act and Resolution No. 98-15 of the Council. Section 4. The collected in the same collected and shall be procedure and sale in valorem taxes. above authorized special tax shall be manner as ordinary ad valorem taxes are subject to the same penalties and the same cases of delinquency and provided for ad Section 5. 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 6. 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. DK09720/962858/266804.03_ 2 ,> ~ .<' , INTRODUCED~ND APPROVED UPON FIRST READING t~is 14th day of July, 1998, upon the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: BRINLEY, KELLEY, METZE, PAPE ALONGI NONE NONE PASSED I APPROVED AND ADOPTED this 28th day of July I 1998. AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: iry~ ,--:ity~Clerk - APP~OVED AS TO LEGAL FORM: 7 'I \.> DK09720/962858/266804.03_ BRINLEY, KELLEY, METZE, PAPE ALONGI 3 ,,' ,# EXIDBIT A CITY OF LAKE ELSINORE COMMUNITY FACllJTIES DISTRICT NO. 98-1 (SUMMERl:ill.L PUBLIC IMPROVEMENTS) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES A special tax shall be levied on each Parcel of land within the City of Lake Elsinore Community Facilities District No. 98-1 (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 II or Category ill 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. CATEGORIES OF SPECIAL TAX CATEGORY I: Category I includes all Taxable Property in the District not subject to a special tax under Category II or Category ill. The Category I special tax will be levied annually. Lot number 238 of Tract 20705 and lot number 239 of Tract 20705 will not be subject to special tax if developed for other than residential use. The maximum special tax that may be levied on Parcels within Category I during the Fiscal Year ending June 30, 1998 is $22,976 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, decreased by the amount of special tax levied for such Fiscal Year on each Parcel or Dwelling Unit in Community Facilities District No. 91-2. CATEGORY ll: Any Parcel for which a final map has been recorded will be classified in Category II until such time as a building permit has been issued. The maximum special tax applicable to Parcels in Category II is shown below for the Fiscal Year ending June 30, 1998. The maximum special tax rate for the Parcels classified in Category II shall increase each Fiscal Year thereafter by 2%, rounded up to the nearest dollar, compounded annually, decreased by the amount of special tax levied for such Fiscal Year on each Parcel or Dwelling Unit in Community Facilities District No. 91-2. OHOSS911962MSJ#266773.3 A-1 /' . .1 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. CATEGORY IT Maximum Tract No. Special Tax 20704 $2,789 20705 $2,836 (Except Lot No. 238 and Lot No. 239) CATEGORY III: Category ill includes all Parcels or Dwelling Units for which a building permit has been issued. The maximum special tax for Parcels and Dwelling Units described in Category ill for the Fiscal Year ending June 30, 1998 is the total of $578.00 per Parcel or Dwelling Unit plus $0.69 per Square Foot for each Square Foot shown on the building permit, decreased by the amount of special tax levied for such Fiscal Year on each Parcel on Dwelling Unit in Community Facilities District No. 91-2. Each Fiscal Year thereafter, the per Parcel or Dwelling Unit and the per Square Foot rate listed above will increase by 2%, rounded up to the nearest dollar, compounded annually. A Parcel or Dwelling Unit will be subject to the Category ill special tax for not more than 40 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 IT or Category III. 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 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: 1. Levy on each Parcel or Dwelling Unit described in Category ill an amount equal to 94% of the Category ill maximum special tax. DH08891l962858'#2M773.3 A-2 /' ,I 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 III 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. 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 III as provided in 1 above, and levy on each Parcel described in Category II an amount equal to 75% of the Category IT 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 II 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 3 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 III an amount equal to 100% of the Category III maximum special tax, levy on each Parcel described in Category IT an amount equal to 75% of the Category II 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 III 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 III or Parcel described in Category IT an amount equal to 100% of the Category III or Category IT, 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 IT 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. DHOaa91/9628~8I.2~773.3 A-3 I' / ,~ 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, II or Dwelling Unit described in Category III an amount equal to the maximum special tax described in Category I, II or III, 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. PREPAYMENTS Prepayments may be made only for property subject to tax under Category m. 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 prepayment 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. (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 ill 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. DH03891J962~aliJ266773.3 A.4 .' j/!" ,r DEFINITIONS 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, financing consultants and other consultants, 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, advanced, or incurred by the City from its gene.ral 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. District means the City of Lake Elsinore Community Facilities District No. 98-1 (Summerhill Public Improvements). 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 DHOI191J9621MI #260773.3 A-5 .. ..;~ ,r , 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, 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. DH0a891J9628~8/ ,f26~773.3 A-6 STATE OF CALIFORNIA) COUNTY OF RIVERSIDE ) SS: CITY OF LAKE ELSINORE) I, VICKI KASAD, CITY CLERK OF THE CITY OF LAKE ELSINORE, DO HEREBY CERTIFY that the foregoing Ordinance was read by title only for adoption on July 14, 1998, and passed on July 28, 1998, by the following roll call vote: AYES: COUNCILMEMBERS: BRINLEY, KELLEY, METZE,PAPE NOES: COUNCILMEMBERS: ALONGI ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE n( ")/ J v~;t~ 'VICKI KASAD, CITY CLERK aTY OF LAKE ELSINORE (SEAL) STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE) SS: CITY OF LAKE ELSINORE) I, VICKI 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 Ordinance No.1 039 of said Council, and that the same has not been amended or repealed. DATED: July 30, 1998 0:i .LJ VICKI KASAD, CITY CLERK CITY OF LAKE ELSINORE (SEAL)