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HomeMy WebLinkAboutCC Reso No 2016-033 CC Reso CFD 2003-2 Canyon Hills Determining Necessity of Incurring Bonded Indebtedness IA E Calling ElectionRESOLUTION NO. 2016 -033 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2003 -2 (CANYON HILLS) DETERMINING THE NECESSITY OF INCURRING BONDED INDEBTEDNESS IN AN AMOUNT NOT TO EXCEED $3,000,000 WITHIN IMPROVEMENT AREA E OF CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2003 -2 (CANYON HILLS) AND CALLING AN ELECTION THEREIN WHEREAS, the City of Lake Elsinore the (the "City ") has previously formed City of Lake Elsinore Community Facilities District No. 2003 -2 (Canyon Hills) ("Community Facilities District No. 2003 -2" or the "District ") pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the "Act "); and, WHEREAS, on March 8, 2016, the City Council of the City (the "Council') adopted Resolution No. 2016 -021 stating its intention to (i) annex territory to the District to be designated as Improvement Area E of the District ( "Improvement Area E ") pursuant to the Act; and (ii) to incur bonded indebtedness in the amount of up to $3,000,000 within proposed Improvement Area E to finance (1) the purchase, construction, modification, expansion, improvement or rehabilitation of public facilities identified in Attachment "B" to Resolution No. 2016 -021, and (2) the incidental expenses to be incurred in financing such public facilities and services and forming and administering the District, as identified in Attachment "C" to Resolution No. 2016- 021; and, WHEREAS, notice was published as required by law relative to the intention of the Council to form proposed Community Facilities District No. 2003 -2 and to incur bonded indebtedness in the amount of up to $3,000,000 within the boundaries of proposed Improvement Area E; and, WHEREAS, on April 12, 2016, this Council conducted a noticed public hearing to determine whether it should proceed with the annexation of Improvement Area E, issue bonds to pay for the facilities and incidental expenses described in Resolution No. 2016 -021 and authorize the rate and method of apportionment of a special tax to be levied within Improvement Area E for the purposes described in Resolution No. 2016 -021; and, WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the annexation of Improvement Area E, the levy of a special tax and the issuance of bonds to pay for the cost of the proposed facilities and incidental expenses were heard and a full and fair hearing was held; and, WHEREAS, the Council subsequent to such hearing adopted Resolution No. 2016 -021 establishing Community Facilities District No. 2003 -2 (the "Resolution of Formation ") and authorizing the financing of the public facilities (the "Facilities ") and the incidental expenses (the "Incidental Expenses ") described in Attachment "B" thereto; and, WHEREAS, the Council desires to make the necessary findings to incur bonded indebtedness within the District, to declare the purpose for said debt, and to authorize the CITY COUNCIL RESOLUTION NO. 2016 -033 PAGE 2OF4 submittal of a proposition to issue bonded indebtedness to the voters of Improvement Area E, being the landowners within the proposed Improvement Area E, all as authorized and required by law. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS: Section 1. It is necessary to incur bonded indebtedness in a maximum aggregate principal amount not to exceed $3,000,000 within Improvement Area E. Section 2. The indebtedness is to be incurred for the purpose of financing the costs of purchasing, constructing, modifying, expanding, improving, or rehabilitating the Facilities and financing the Incidental Expenses, as described in the Resolution of Formation, and carrying out the powers and purposes of Community Facilities District No. 2003 -2 for Improvement Area E, including, but not limited to, financing the costs of selling the bonds, establishing and replenishing bond reserve funds and paying remarketing, credit enhancement and liquidity facility fees and other expenses of the type authorized by Section 53345.3 of the Act. Section 3. The whole of the property within Improvement Area E, other than property exempted from the special tax pursuant to the provisions of the rate and method of apportionment attached to the Resolution of Formation as Attachment "A," shall pay for the bonded indebtedness pursuant to the levy of the special tax authorized by the Resolution of Formation. Section 4. The maximum term of the bonds to be issued shall in no event exceed forty (40) years. Section 5. The bonds shall bear interest at the rate or rates not to exceed the maximum interest rate permitted by law, payable annually or semiannually, or in part annually and in part semiannually, except the first interest payment may be for a period of less than six months, with the actual rate or rates and times of payment to be determined at the time or times of sale thereof. Section 6. The bonds may bear a variable or fixed interest rate, provided that such variable rate or fixed rate shall not exceed the maximum rate permitted by Section 53531 of the Act, or any other applicable provision of law limiting the maximum interest rate on the bonds. Section 7. Pursuant to Section 53351 of the Act, a special election is hereby called for Community Facilities District No. 2003 -2 with respect to Improvement Area E on the proposition of incurring the bonded indebtedness. The proposition relative to incurring bonded indebtedness in the maximum aggregate principal amount of $3,000,000 shall be in the form of Proposition A set forth in Attachment "A" hereto. In accordance with Sections 53351(h) and 53353.5 of the Act, the election shall be consolidated with the special election called on the proposition of levying a special tax within Improvement Area E as described in the Resolution of Formation, which proposition shall be in the form of Proposition B set forth in Attachment "A." CITY COUNCIL RESOLUTION NO. 2016 -033 PAGE 3 OF 4 Section 8. The date of the special election for Community Facilities District No. 2003 -2 with respect to Improvement Area E on the propositions of incurring the bonded indebtedness and authorizing the levy of the special tax shall be April 12, 2016, or such later date as is consented to by the City Clerk of the City; provided that, if the election is to take place sooner than 90 days after April 12, 2016, then the unanimous written consent of each qualified elector within Improvement Area E to such election date must be obtained. The polls shall be open for said election immediately following the close of the public hearing on April 12, 2016. The election shall be conducted by the City Clerk. Except as otherwise provided by the Act, the election shall be conducted in accordance with the provisions of law regulating elections of the City of Lake Elsinore insofar as such provisions are determined by the City Clerk to be applicable. The City Clerk is authorized to conduct the election following the adoption of the Resolution of Formation, and this resolution and all ballots shall be received by and the City Clerk shall close the election by 11:00 p.m. on the election day; provided the election shall be closed at such earlier time as all qualified electors have voted as provided in Section 53326(d) of the Act. Pursuant to Section 53326 of the Act, the ballots for the special election shall be distributed in person, or by mail with return postage prepaid, to the qualified electors within Improvement Area E. The City Clerk has secured a certificate of the Registrar of Voters of the County of Riverside certifying that there were no registered voters within Improvement Area E as of March 8, 2016. Accordingly, since there were fewer than 12 registered voters within Improvement Area E for each of the 90 days preceding April 12, 2016, the qualified electors shall be the landowners within Improvement Area E and each landowner, or the authorized representative thereof, shall have one vote for each acre or portion thereof that such landowner owns within Improvement Area E, as provided in Section 53326 of the Act. The sole landowner within Improvement Area E has executed and delivered a waiver of certain election law requirements and consenting to the holding of the election on April 12, 2016, which waiver is on file with the City Clerk. Section 9. This Resolution shall be effective upon its adoption. PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, this 12th day of April, 2016. ATTEST: usan M. Domen, MMC, City Clerk Brian Tisdale, Mayor' CITY COUNCIL RESOLUTION NO. 2016 -033 PAGE 3OF4 STATE OF CALIFORNIA COUNTY OF RIVERSIDE SS CITY OF LAKE ELSINORE I, Susan M. Domen, MMC, City Clerk of the City of Lake Elsinore, California, hereby certify that Resolution No. 2016 -033 was adopted by the City Council of the City of Lake Elsinore at a regular meeting held on the 12th day of April, 2016 by the following vote: AYES: Council Members Manos, Johnson and Hickman, Mayor Pro Tern Magee, and Mayor Tisdale NOES: None ABSTAIN: None ABSENT: None Susan M. Domen, M C, City Clerk ATTACHMENT A BALLOT PROPOSITIONS THE CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2003 -2 (CANYON HILLS) SPECIAL TAX AND SPECIAL BOND ELECTION April 12, 2016 PROPOSITION A: Shall City of Lake Elsinore Community Facilities District No. 2003 -2 (Canyon Hills) (the "District ") incur an indebtedness and issue bonds for Improvement Area E in the maximum principal amount of YES $3,000,000, with interest at a rate or rates not to exceed the maximum interest rate permitted by law, to finance NO_ the Facilities and the Incidental Expenses described in Resolution No. 2016 -021 of the City Council of the City of Lake Elsinore annexing Improvement Area E to the District? YES PROPOSITION B: Shall a special tax with a rate and method of apportionment as provided in Resolution No. NO_ 2016 -021 of the City Council of the City of Lake Elsinore annexing Improvement Area E to the District be levied to pay for the Facilities, Incidental Expenses and other purposes described in Resolution No. 2016 -021, including the payment of the principal of and interest on bonds issued to finance the Facilities and Incidental Expenses?