HomeMy WebLinkAboutOrd. No. 2017-1374 Levy of Special Tax Improvement Areas JJ and KKORDINANCE NO. 2017 -1374
ORDINANCE 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. 2006 -1
(SUMMERLY) AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN EACH OF
IMPROVEMENT AREAS JJ AND KK OF SUCH DISTRICT
Whereas, after a Public Hearing, on February 28, 2006, the City Council (Council) of the City of
Lake Elsinore (City) adopted Resolution Nos. 2006 -30 (Original Resolution of Formation) and
2006 -31 (Original Resolution to Incur Bonded Indebtedness) which formed City of Lake Elsinore
Community Facilities District No. 2006 -1 (Summerly) (District or Community Facilities District
No. 2006 -1) pursuant to the Mello -Roos Community Facilities Act of 1982, as amended (Act) and
called a special election for February 28, 2006, within the District and Improvement Area Nos. 1
through 3 therein on three propositions relating to the levying of a special tax, the incurring of
bonded indebtedness and the establishment of an appropriations limit for the District, which were
approved by more than two- thirds vote by the qualified electors on February 28, 2006; and,
Whereas, subsequent to the formation of the District, the District received a petition signed by
owners of the land within the boundaries of the District to dissolve Improvement Area Nos. 1
through 3 therein and to establish Improvement Areas A through F of the District, to authorize the
levy of the special tax in accordance with rates and methods of apportionment of special taxes
for Improvement Areas A through F and to authorize the District to incur bonded indebtedness for
Improvement Areas A through F; and,
Whereas, on January 25, 2011, the Council, acting as the legislative body of the District, adopted
Resolution Nos. 2011 -005 and 2011 -006, dissolving Improvement Area Nos. 1 through 3 therein,
establishing Improvement Areas A through F of the District and declaring the intention to incur
bonded indebtedness of the District for Improvement Areas A through F; and,
Whereas, after a Public Hearing, on March 8, 2011, the Council adopted Resolution Nos. 2011-
119 and 2011 -120, which called special elections on March 8, 2011, within Improvement Areas A
through F of the District on three propositions relating to the levying of a special tax, the incurring
of bonded indebtedness and the establishment of an appropriations limit for the District, which
were approved by more than two - thirds vote by the qualified electors on March 8, 2011,
(collectively, the "2011 Change Proceedings "); and,
Whereas, subsequent to the 2011 Change Proceedings, the District received a petition signed
by owners of the land within Improvement Areas C through F of the District to dissolve
Improvement Areas C through F and to establish Improvement Areas CC, DD, EE, FF, GG, HH
and II of the District from the areas within Improvement Areas C through F of the District; and,
Whereas, on February 25, 2014, the Council, acting as the legislative body of the District, adopted
Resolution Nos. 2014 -010 and 2014 -011, dissolving Improvement Areas C through F therein,
establishing Improvement Areas CC, DD, EE, FF, GG, HH and If of the District and declaring the
intention to incur bonded indebtedness of the District for Improvement Areas CC, DD, EE, FF,
GG, HH and Il;'and,
Whereas, after a Public Hearing, on April 8, 2014, the Council adopted Resolution Nos. 2014-
016 and 2014 -017, which called special elections on April 8, 2014, within Improvement Areas CC,
Ord. No. 2017 - 1374
Page 2 of 4
DD, EE, FF, GG, HH and II of the District on three propositions relating to the levying of a special
tax, the incurring of bonded indebtedness and the establishment of an appropriations limit for the
District for Improvement Areas CC, DD, EE, FF, GG, HH and II, which were approved by more
than two - thirds vote by the qualified electors on April 8, 2014, (collectively, the 2014 Change
Proceedings); and,
Whereas, subsequent to the 2014 Change Proceedings, the District received a petition signed
by McMillin Summerly, LLC, a Delaware limited liability company, (Owner) which owns land within
Improvement Area DD and GG of the District, which the Owner desires to establish as
Improvement Areas JJ and KK of the District, respectively (Proposed Improvement Area JJ and
Proposed Improvement Area KK and together, the Proposed Improvement Areas) and to approve
rates and methods of apportionment for each of Proposed Improvement Area JJ and Proposed
Improvement Area KK; and,
Whereas, on January 24, 2017, the Council adopted Resolution No. 2017 -016 stating its intention
to establish the Proposed Improvement Areas, to approve Rates and Methods of apportionment
for each of Proposed Improvement Area JJ and Proposed Improvement Area KK attached as
Attachments "B" and "C," to Resolution No. 2017 -016 respectively (Proposed Rates and
Methods); and,
Whereas, on January 24, 2017, the Council also adopted Resolution No. 2017 -017 stating its
intention to incur bonded indebtedness within the Proposed Improvement Areas in an amount not
to exceed $7,000,000 for Improvement Area JJ and $5,700,000 for Improvement Area KK to
finance: (1) the purchase, construction, expansion, improvement or rehabilitation of public
improvements identified in Attachment "A" to Resolution No. 2017 -017 (collectively, the Facilities);
and (2) the incidental expenses to be incurred in financing the Facilities and forming and
administering the District (Facilities Incidental Expenses); and,
Whereas, pursuant to Resolution No. 2017 -016, the Council also stated its intention to levy
special taxes within the Proposed Improvement Areas to finance certain services as identified in
Attachment "D" to Resolution No. 2017 -016 (Services) and certain incidental expenses related
thereto (Services Incidental Expenses); and,
Whereas, on February 28, 2017, the Council continued the Public Hearing called for pursuant to
Resolution No. 2017 -016 and Resolution No. 2017 -017 to March 14, 2017, and on March 14,
2017, such Public Hearing was continued to March 28, 2017; and,
Whereas, a notice calling a Public Hearing, as continued to March 28, 2017, was published as
required by law relative to the intention of the Council to establish the Proposed Improvement
Areas within Community Facilities District No. 2006 -1 and to incur bonded indebtedness within
each Proposed Improvement Area; and,
Whereas, on March 28, 2017, this Council conducted a noticed Public Hearing to determine
whether it should proceed with the formation of the Proposed Improvement Areas, to issue bonds
for the benefit of each Proposed Improvement Area to pay for the Facilities and Facilities
Incidental Expenses and authorize the levy of the special taxes to finance the Facilities, Facilities
Incidental Expenses, Services and Services Incidental Expenses in accordance with the
Proposed Rates and Methods, all as described in the Resolution of Intention; and,
Whereas, at the March 28, 2017, Public Hearing all persons desiring to be heard on all matters
pertaining to the formation of the Proposed Improvement Areas, the levy of special taxes in
accordance with the Proposed Rates and Methods and the issuance of bonds within each
Ord. No. 2017 - 1374
Page 3 of 4
Proposed Improvement Area to pay for the cost of the proposed Facilities and Facilities Incidental
Expenses were heard and a full and fair Hearing was held; and,
Whereas, on March 28, 2017, following the close of the Public Hearing, the Council adopted
Resolution Nos.2017 -041 (the "Resolution of Formation ") and 2017 -042 (Resolution to Incur
Bonded Indebtedness) which called a special election on March 28, 2017 within each Proposed
Improvement Area on three propositions relating to the levying of a special tax, the incurring of
bonded indebtedness and the increase of the appropriations limit for the District; and,
Whereas, on March 28, 2017, a special election was held within each of the Proposed
Improvement Areas of the District at which the qualified electors approved by more than a
two - thirds vote Propositions A, B and C authorizing the levy of a special tax within each of the
Proposed Improvement Areas for the purposes described in the Resolution of Formation and the
issuance of bonded indebtedness for each of the Proposed Improvement Areas as described in
the Resolution to Incur Bonded Indebtedness and the appropriations limit.
NOW, THEREFORE, THE CITY COUNCIL, ACTING AS THE LEGISLATIVE BODY OF CITY
OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2006 -1 (SUMMERLY), DOES
HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
1. The above recitals are all true and correct.
2. By the passage of this Ordinance, the Council authorizes the levy of a special tax within each
of Improvement Area JJ and Improvement Area KK of Community Facilities District No. 2006 -1
at the maximum rates and in accordance with the Proposed Rates and Method.
3. The Council is hereby further authorized to determine in each subsequent fiscal year, by
ordinance, or by resolution if permitted by then applicable law, on or before August 10 of each
year, or such later date as is permitted by law, the specific special tax rate and amount to be
levied on each parcel of land in the Proposed Improvement Areas pursuant to the applicable
Proposed Rate and Method. The special tax rates to be levied pursuant to the Proposed Rates
and Methods shall not exceed the applicable maximum rates set forth therein, but the special tax
may be levied at a lower rate.
4. Properties or entities of the State, Federal or other local governments shall be exempt from
the special tax, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act and the
Proposed Rates and Methods. No other properties or entities are exempt from the special tax
unless the properties or entities are expressly exempted in the Resolution of Formation, or in a
resolution of consideration to levy a new special tax or special taxes or to alter the Rate or Method
of apportionment of an existing special tax as provided in Section 53334 of the Act.
5. All of the collections of the special tax pursuant to the Proposed Rates and Methods shall be
used as provided for in the Act and the Resolution of Formation. The special tax shall be levied
within the Proposed Improvement Areas only so long as needed for the purposes described in
the Resolution of Formation.
6. The special tax levied pursuant to the Proposed Rates and Methods shall be collected in the
same manner as ordinary ad valorem property taxes are collected and shall be subject to the
same penalties and the same procedure, sale and lien priority in case of delinquency as is
provided for ad valorem taxes (which such procedures include the exercise of all rights and
remedies permitted by law to make corrections, including, but not limited to, the issuance of
amended or supplemental tax bills), as such procedure may be modified by law or by this Council
from time to time.
Ord. No. 2017 - 1374
Page 4 of 4
7. As a cumulative remedy, if any amount levied as a special tax for payment of the interest or
principal of any bonded indebtedness of the District, together with any penalties and other charges
accruing under this Ordinance, are not paid when due, the Council may, not later than four years
after the due date of the last installment of principal on the Bonds, order that the same be collected
by an action brought in the superior court to foreclose the lien of such special tax.
8. The Mayor shall sign this Ordinance and the City Clerk shall attest to the Mayor's signature
and then cause the same to be published within fifteen days after its passage at least once in a
newspaper of general circulation published and circulated in City.
9. This Ordinance relating to the levy of the special tax within the Proposed Improvement Areas
shall take effect thirty days following its final passage, and the specific authorization for adoption
is pursuant to the provisions of Section 53340 of the Act.
10. The City Clerk is hereby authorized to transmit a certified copy of this ordinance to the
Riverside County Assessor and Treasurer -Tax Collector, and to perform all other acts which are
required by the Act, this Ordinance or by law in order to accomplish the purpose of this Ordinance.
PASSED and ADOPTED this 11th day of April, 2017.
Robert E. Magee,
Attest:
1 ky
Diana iron, CIVIC
Deputy City Clerk
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE } ss.
CITY OF LAKE ELSINORE }
I, Diana Gir6n, Deputy City Clerk of the City of Lake Elsinore, do hereby certify that the foregoing
Ordinance No. 2017 -1374 was introduced at the Regular meeting of March 28, 2017, and adopted
by the City Council of the City of Lake Elsinore at its Regular meeting of April 11, 2017, by the
following vote:
AYES: Council Members Hickman, Manos and Tisdale;
NOES: None
ABSENT: Mayor Pro Tern Johnson
ABSTAIN: None
Mayor Magee
Diana Girb , C C
Deputy City Clerk