HomeMy WebLinkAbout0011_1_CFD_2015-5_Formation SRREPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Grant Yates, City Manager
Prepared by: Jason Simpson, Assistant City Manager
Date:July 26, 2016
Subject:Formation of Community Facilities District 2015-5 (Trieste) of the City of Lake Elsinore
Recommendation
Adopt Resolution No. 2016-___, a Resolution of the City Council of the City of Lake Elsinore
establishing Community Facilities District 2015-5 of the City of Lake Elsinore (Trieste),
authorizing the levy of a special tax therein and calling an election;
Adopt Resolution No. 2016-____, A Resolution of the City Council of the City of Lake
Elsinore acting as the Legislative Body of Community Facilities District 2015-5 of the City of
Lake Elsinore (Trieste) determining the necessity of incurring bonded indebtedness in an
amount not to exceed $2,700,000 within Community Facilities District 2015-5 of the City of
Lake Elsinore (Trieste) and calling an election;
Adopt Resolution No. 2016- ___ a Resolution of the City Council of the City of Lake Elsinore
acting as the Legislative Body of Community Facilities District 2015-5 of the City of Lake
Elsinore (Trieste) Certifying the Election Results;
It is also recommended that the City Council of the City of Lake Elsinore acting as the
Legislative Body of Community Facilities District 2015-5 of the City of Lake Elsinore (Trieste)
introduce Ordinance No. _____ authorizing the levy of special taxes.
Background
The developer, Far West Industries, a California corporation (the “Developer”), property owner of
one residential tract containing 75 proposed lots within the City (TR 25479) has requested that the
City assist them in forming a community facilities district (the “CFD”) to finance the costs of certain
public improvements through the levy of a special tax and the issuance of bonds in an amount not
to exceed $2,700,000. The rate and method of apportionment also contains a contingent services
tax for lighting services that becomes effective if the Property Owners’ Association fails to
properly maintain such services.
The landowner has requested the City that the area described in Exhibit A of the Resolution of
Intention be the boundaries of the CFD and that a rate and method of apportionment of the
special taxes to be levied as described in Exhibit B.
Formation of CFD2015-5
July 26, 2016
Page 2
The Resolution of Intention was approved on June 14, 2016 which called for public hearing to be
held on July 26, 2016, for the Council to formally consider approval to form the CFD and hold an
election on the approval of the special taxes and the need to incur bonded indebtedness to within
the CFD. Notice of the public hearing was published in the Press Enterprise and mailed to the
property owner.
In connection with the public hearing, SCG – Spicer Consulting Group, LLC has prepared a CFD
Report which describes and analyzes the facilities and services to be financed by the CFD and
the estimated costs of such facilities and services. Following the close of the public hearing,
Council will be asked to adopt Resolutions Nos ___ and ___ which approve the formation of the
CFD, determine the necessity to issue Bonds in an amount not to exceed $2,700,000, the
necessity to levy special taxes annually to pay debt service on such Bonds and for the costs of
the facilities and services and calling an election to submit to the qualified voters in the CFD ballot
measures on the approval of the special taxes, the issuance of the bonds and an appropriations
limit for the CFD.
On file with the City Clerk is a Certificate of the Registrar of Voters of Riverside County certifying
that there are no registered voters residing within the boundaries of the CFD. Accordingly, under
the Mello Roos Act only property owners owning land in the CFD are eligible to vote at the
election with each owner having one vote for each acre (or portion thereof) that they own within
the CFD. The Developer has executed a Consent and Waiver as to certain election procedures
that allow the election to be held immediately following the adoption of Resolution Nos __ and __.
Accordingly, assuming the City Council decides to approve such Resolutions, the City Clerk will
conduct the election and the City Council will be presented with the Resolution Certifying the
Election Results. Assuming the ballot measures pass by the requisite 2/3rds vote, the Council
would be asked to introduce the Ordinance authorizing the levy of the Special Tax. A notice of
special tax lien will be filed on all of the property within the CFD.
Fiscal Impact
The CFD will be required to annually levy special taxes on all of the taxable property within
the CFD in order to pay for the costs of facilities, debt service on bonds, the services and
administration of the CFD. Any bonds issued by the CFD are NOT obligations of the City and
will be secured solely by the Special Taxes levied in the CFD.
The Developer has made a deposit to pay for the costs of forming the CFD. The Resolution
of Intention approved a form of a Reimbursement Agreement to reimburse the developer for
these costs if and when bonds are issued for CFD.
Exhibits
1. Resolution No.2016-___Resolution Establishing CFD 2015-5
2.Resolution No. 2016-___ Resolution Determining Necessity to Incur Bonded Debt
3.Resolution No. 2016-___ Resolution Certifying the Election Results
4.Ordinance No. ____ Authorizing the Levy of the Special Tax
5.Certificate of the Registrar of Voters
6.Landowner Consent and Waiver
7.CFD Report
8.Certificate of City Clerk Regarding Election