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HomeMy WebLinkAboutCC Reso No 2016-121 Declaring its Intention to Incur Bonded IndebtednessRESOLUTION NO. 2016 -121 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DECLARING ITS INTENTION TO INCUR BONDED INDEBTEDNESS IN AN AMOUNT NOT TO EXCEED $27,500,000 WITHIN PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2016 -2 OF THE CITY OF LAKE ELSINORE (CANYON HILLS) Whereas, the City Council of the City of Lake Elsinore (City Council) upon receipt of a petition as provided in Section 53318 of the Government Code of the State of California instituted proceedings to form Community Facilities District No. 2016 -2 of the City of Lake Elsinore (Canyon Hills) (Community Facilities District No. 2016 -2 or the District) pursuant to the Mello- Roos Community Facilities Act of 1982 (Act), as amended, pursuant to Resolution No. 2016 -120 adopted by the City Council on the date hereof to finance (1) the purchase, construction, modification, expansion, improvement or rehabilitation of public facilities identified in Attachment "A" hereto and incorporated herein by this reference, including all furnishings, equipment and supplies related thereto (collectively, the Facilities); and (2) the incidental expenses to be incurred in financing the Facilities and forming and administering the District (Incidental Expenses); and, Whereas, the City Council estimates that the amount required to finance the Facilities and Incidental Expenses is approximately $27,500,000 and, Whereas, in order to finance the Facilities and Incidental Expenses, the City Council intends to authorize the issuance of bonds in the maximum aggregate principal amount of $27,500,000, the repayment of which is to be secured by special taxes levied in accordance with Secticn 53328 of the Act on all property in the proposed Community Facilities District No. 2016 -2, other than those properties exempted from taxation in the rate and method of apportionment set forth in Attachment "C" to Resolution No.2016 -120. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DOES HEREBY RESOLVES, DETERMINES AND ORDERS AS FOLLOWS: Section 1. The above recitals are true and correct. Section 2. It is necessary to incur bonded indebtedness within the boundaries of proposed Community Facilities District No. 2016 -2 in an amount not to exceed $27,500,000 to finance the costs of the Facilities and Incidental Expenses, as permitted by the Act. Section 3. The indebtedness will be incurred for the purpose of financing the costs of the Facilities and the Incidental Expenses, including, but not limited to, the funding of reserve funds for the bonds, the financing of costs associated with the issuance of the bonds and all other costs and expenses necessary to finance the Facilities which are permitted to be financed pursuant to the Act. Section 4. It is the intent of the City Council to authorize the sale of bonds in one or more series, in the maximum aggregate principal amount of $27,500,000 and at a maximum interest rate not in.excess of 12 percent per. annum, or a higher rate not in excess of the maximum rate permitted by law at the time that the bonds are issued. The term of the bonds of each series shall be determined pursuant to a resolution of this City Council acting in its capacity as the legislative body of the District authorizing the issuance of the bonds of such series, but such CC Reso. No. 2016 -121 Page 2 of 2 term shall in no event exceed 35 years from the date of issuance of the bonds of such series, or such longer term as is then permitted by law. Section 5. A Public Hearing (Hearing) on the proposed issuance of bonded indebtedness shall be held at 7:00 p.m. or as soon thereafter as practicable, on December 13, 2016, at the City Cultural Center, 183 North Main Street, Lake Elsinore, California. Section 6. At the time and place set forth in this Resolution for the Hearing, any interested persons, including all persons owning land or registered to vote within proposed Community Facilities District No. 2016 -2, may appear and be heard. Section 7. The City Clerk is hereby directed to publish a Notice of the Hearing (Notice) pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of the proposed Community Facilities District No. 2016 -2. Such publication shall be completed at least seven days prior to the date of the Hearing. The City Clerk is further directed to mail a copy of the Notice to each of the landowners within the boundaries of proposed Community Facilities District No. 2016 -2 at least 15 days prior to the Hearing. Passed and Adopted this 25th day of October, 2016. Attest: ,Susan M. Domen, MMC City Clerk STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) �^ P Brian Tisdale, Mayor I, Susan M. Domen, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Resolution No. 2016 -121 was adopted by the City Council of the City of Lake Elsinore, California, at the Regular meeting of October 25, 2016 and that the same was adopted by the following vote: AYES: Council Members Hickman, Johnson, and Manos; Mayor Pro Tern Magee and Mayor Tisdale NOES: None ABSENT: None ABSTAIN: None Susan M. Domen, MMC City Clerk ATTACHMENT A Types of Facilities To Be Financed By Community Facilities District No. 2016 -2 The proposed types of public facilities and expenses to be financed by the District include: The construction, purchase, modification, expansion, rehabilitation and /or improvement of (i) drainage, library, park, roadway and other public facilities of the City, including the foregoing public facilities which are included in the City's fee programs with respect to such facilities and authorized to be financed under the Mello -Roos Community Facilities Act of 1982, as amended (the "City Facilities ") (ii) water and sewer facilities including the acquisition of capacity in the sewer system and /or water system of the Elsinore Valley Municipal Water District which are included in Elsinore Valley Municipal Water District's water and sewer capacity and connection fee programs (the "Water District Facilities" and together, with the City Facilities, the "Facilities "), and (iii) the payment of all amounts necessary to pay, repay or defease any obligation to pay or any indebtedness secured by any special tax levied for Improvement Area B of the City of Lake Elsinore Community Facilities District No. 2003 -2 (Canyon Hills) within the area of the District, and all appurtenances and appurtenant work in connection with the foregoing Facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such Facilities, and to finance the incidental expenses to be incurred, including: a. The cost of engineering, planning and designing the Facilities; b. All costs, including costs of the property owner petitioning to form the District, associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District; and C. Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities.