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City of Lake Elsinore 130 South Main Street
Lake Elsinore, CA 92530
www.lake-elsinore.org
File Number: ID# 16-480
Agenda Date: 12/13/2016 Status: Public HearingVersion: 2
File Type: ReportIn Control: City Council
Agenda Number: 17)
Page 1 City of Lake Elsinore Printed on 12/8/2016
REPORT 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:December 13, 2016
Subject:Formation of Community Facilities District 2016-2 of the City of Lake Elsinore
(Canyon Hills)
Recommendation
adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE
ESTABLISHING COMMUNITY FACILITIES DISTRICT 2016-2 OF THE CITY OF LAKE ELSINORE
(CANYON HILLS), AUTHORIZING THE LEVY OF A SPECIAL TAX THEREIN AND CALLING AN
ELECTION (THE “RESOLUTION OF FORMATION”); and,
adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE ACTING AS
THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT 2016-2 OF THE CITY OF
LAKE ELSINORE (CANYON HILLS) DETERMINING THE NECESSITY TO INCUR BONDED
INDEBTEDNESS IN AN AMOUNT NOT TO EXCEED $27,500,000 WITHIN COMMUNITY
FACILITIES DISTRICT 2016-2 OF THE CITY OF LAKE ELSINORE (CANYON HILLS) AND
CALLING AN ELECTION (THE “RESOLUTION TO INCUR DEBT”); and,
adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE ACTING AS
THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT 2016-2 OF THE CITY OF
LAKE ELSINORE (CANYON HILLS) CERTIFYING THE ELECTION RESULTS (THE
“RESOLUTION 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 2016-2 OF THE CITY OF LAKE ELSINORE (CANYON
HILLS) INTRODUCE THE ORDINANCE AUTHORIZING THE LEVY OF SPECIAL TAXES; AND,
introduce AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY
FACILITIES DISTRICT NO. 2016-2 OF THE CITY OF LAKE ELSINORE (CANYON HILLS)
AUTHORIZING THE LEVY OF SPECIAL TAXES.
Background
The developer, Pardee Homes, a California Corporation (the “Developer”), the property owner within
proposed Community Facilities District 2016-2 of the City of Lake Elsinore (Canyon Hills) (the “CFD”)
which is expected to include 456 lots within the City has requested that the City assist them in
forming 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 $27,500,000.
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.
The property within the proposed CFD is currently included within Improvement Area B of City of
Lake Elsinore Community Facilities District No. 2003-2 (“CFD No. 2003-2”). As provided in the
Resolution of Intention (as defined below) and the Resolution of Formation, the special tax of the
CFD shall not be levied until the special tax lien of CFD No. 2003-2 is eliminated. It is the intent that
the CFD will apply of the portion of the proceeds of bonds to eliminate the special tax lien of CFD
No. 2003-2 within the CFD.
Resolution No. 2016-120 (the “Resolution of Intention”) was approved by the City Council on
October 25, 2016, which called for public hearing to be held on December 13, 2016, for the City
Council to formally consider approval of the formation of the CFD and to hold an election on the
approval of the special taxes and the need to incur bonded indebtedness within the CFD. Notice of
the public hearing was published in the Press Enterprise and mailed to the Developer.
In connection with the public hearing, Albert Webb & Associates has prepared a CFD Report which
describes and analyzes the facilities to be financed by the CFD and the estimated costs of such
facilities. Following the close of the public hearing, the City Council will be asked to adopt the
Resolution of Formation and the Resolution to Incur Debt which approve the formation of the CFD,
determine the necessity to issue bonds in an amount not to exceed $27,500,000, the necessity to
levy special taxes annually to pay debt service on such bonds and for the costs of the facilities 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 District 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 the Resolution of Formation and the
Resolution to Incur Debt. 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 District 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 District are NOT obligations of the City and will be secured
solely by the Special Taxes levied in the CFD.
Pardee Homes, a California Corporation 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:
A.Resolution No. 2016-___ Resolution Establishing CFD 2016-2
B.Resolution No. 2016-___ Resolution Determining Necessity to Incur Bonded Debt
C.Resolution No. 2016-___ Resolution Certifying the Election Results
D.Ordinance No. ____ Authorizing the Levy of the Special Tax
E.Certificate of the Registrar of Voters
F.CFD Report
G.Certificate of City Clerk Regarding Election
RESOLUTION NO. __-___
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE
ELSINORE, CALIFORNIA, ESTABLISHING COMMUNITY FACILITIES
DISTRICT NO. 2016-2 OF THE CITY OF LAKE ELSINORE (CANYON
HILLS), AUTHORIZING THE LEVY OF A SPECIAL TAX THEREIN,
CALLING AN ELECTION AND APPROVING AND AUTHORIZING
CERTAIN ACTIONS RELATED THERETO
Whereas, the City Council (the “City Council”) of the City of Lake Elsinore (the “City”) has
heretofore adopted Resolution No. 2016-120 (the “Resolution of Intention”) stating its intention
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, 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, a copy of Resolution No. 2016-120 setting forth a description of the proposed
boundaries of Community Facilities District No. 2016-2, the facilities and incidental expenses to
be financed by the District and the rate and method of apportionment of the special tax
proposed to be levied within the District is on file with the City Clerk; and,
Whereas, notice was published and mailed to all landowners of the land proposed to be
included within the District as required by law relative to the intention of this City Council to form
proposed Community Facilities District No. 2016-2 and to levy a special tax and to incur bonded
indebtedness in the amount of up to $27,500,000 therein to finance the facilities and incidental
expenses described in Resolution No. 2016-120; and,
Whereas, on December 13, 2016, this City Council conducted a noticed public hearing as
required by law relative to the proposed formation of Community Facilities District No. 2016-2,
the levy of the special tax therein and the issuance of bonded indebtedness by the District; and,
Whereas, at the December 13, 2016 public hearing there was filed with this City Council a
report containing a description of the facilities necessary to meet the needs of the District and
an estimate of the cost of such facilities as required by Section 53321.5 of the Act (the
“Engineer’s Report”); and,
Whereas, at the December 13, 2016 public hearing all persons desiring to be heard on all
matters pertaining to the formation of Community Facilities District No. 2016-2, the levy of the
special tax and the issuance of bonded indebtedness were heard and full and fair hearings were
held; and,
Whereas, following the public hearing, this City Council has determined to authorize the
formation of the District to finance the types of facilities (the “Facilities”) and the incidental
expenses (the “Incidental Expenses”) set forth in Attachment “B” hereto, which are described in
more detail in the Engineer’s Report; and,
Whereas, at the public hearing evidence was presented to this City Council on the matters
before it, and the proposed special tax to be levied within the District was not precluded by a
majority protest of the type described in Section 53324 of the Act, and this City Council at the
conclusion of the hearing was fully advised as to all matters relating to the formation of the
District, the levy of the special tax and the issuance of bonded indebtedness therein; and,
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Whereas, this City Council has determined, based on a Certificate of Registrar of Voters of the
County of Riverside on file in the office of the City Clerk, that no registered voters have been
residing in the proposed boundaries of Community Facilities District No. 2016-2 for each of the
90 days prior to December 13, 2016 and that the qualified electors in Community Facilities
District No. 2016-2 are the landowners within the District; and,
Whereas, the property within proposed Community Facilities District No. 2016-2 is located
within the boundaries of Improvement Area B (“Improvement Area B”) of City of Lake Elsinore
Community Facilities District No. 2003-2 (Canyon Hills) and pursuant to the Rate and Method
(as defined below), the special tax for Community Facilities District No. 2016-2 shall not be
levied until such time as the special tax lien of Improvement Area B of Community Facilities
District No. 2003-2 has been extinguished with respect to the property within Community
Facilities District No. 2016-2 and a notice of cancellation has been recorded to that effect in
accordance with Section 53344 of the Act; and,
Whereas, on the basis of all of the foregoing, this City Council has determined to proceed with
the establishment of Community Facilities District No. 2016-2 and to call an election therein to
authorize (i) the levy of special taxes pursuant to the rate and method of apportionment of the
special tax attached as Attachment “C” to the Resolution of Intention, as modified as set forth in
Attachment “A” attached hereto (as modified, the “Rate and Method”), (ii) the issuance of bonds
to finance the Facilities and Incidental Expenses, and (iii) the establishment of an appropriations
limit for Community Facilities District No. 2016-2.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE HEREBY
FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS:
Section 1.Recitals. The foregoing recitals are true and correct.
Section 2.A community facilities district to be designated “Community Facilities District No.
2016-2 of the City of Lake Elsinore (Canyon Hills)” is hereby established pursuant to the Act.
The City Council hereby finds and determines that all prior proceedings taken with respect to
the establishment of the District were valid and in conformity with the requirements of law,
including the Act. This finding is made in accordance with the provisions of Section 53325.1(b)
of the Act.
Section 3.The boundaries of Community Facilities District No. 2016-2 are established as
shown on the map designated “Map of Proposed Boundaries of Community Facilities District
No. 2016-2 of the City of Lake Elsinore (Canyon Hills)”, which map is on file in the office of the
City Clerk and was recorded pursuant to Sections 3111 and 3113 of the Streets and Highways
Code in the City of County Book of Maps of Assessment and Community Facilities Districts in
the Assessor-County Clerk-Recorder’s office of the County of Riverside in Book No. 80 Page
No. 20, on November 4, 2016 as Instrument No. 2016-0490179.
Section 4.The types of Facilities and Incidental Expenses authorized to be provided for
Community Facilities District No. 2016-2 are those set forth in Attachment “B” attached hereto.
The estimated cost of the Facilities and Incidental Expenses to be financed is set forth in the
Engineer’s Report, which estimates may change as the Facilities are designed and bid for
construction and acquisition, as applicable.
The City is authorized by the Act to contribute revenue to, or to construct or acquire the
Facilities, all in accordance with the Act. The City Council finds and determines that the
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proposed Facilities are necessary to meet the increased demand that will be placed upon local
agencies and public infrastructure as a result of new development within the District and that the
Facilities to be financed, including those to be financed pursuant to a joint community facilities
agreement to be entered into with the Elsinore Valley Municipal Water District (the “Water
District”), benefit residents of the City and the future residents of the District. The District
anticipates entering into a join community facilities agreement with the Water District prior to the
approval of the issuance of bonds pursuant to the Act.
Section 5.Except where funds are otherwise available, it is the intention of this City Council,
subject to the approval of the eligible voters of the District, to levy annually a special tax at the
rates set forth in Attachment “A” hereto on all non-exempt property within the District sufficient
to pay for (i) the Facilities, (ii) the principal and interest and other periodic costs on the bonds
proposed to be issued to finance the Facilities and Incidental Expenses, including the
establishment and replenishment of reserve funds, any remarketing, credit enhancement and
liquidity facility fees and other expenses of the type permitted by Section 53345.3 of the Act;
and (iii) the Incidental Expenses. The District expects to incur, and in certain cases has already
incurred, Incidental Expenses in connection with the creation of the District, the issuance of
bonds, the levying and collecting of the special tax, the completion and inspection of the
Facilities and the annual administration of the bonds and the District. The rate and method of
apportionment of the special tax is described in detail in Attachment “A” hereto and incorporated
herein by this reference, and the City Council hereby finds that Attachment “A” contains
sufficient detail to allow each landowner within the District to estimate the maximum amount that
may be levied against each parcel. As described in greater detail in the Engineer’s Report,
which is incorporated by reference herein, the special tax is based on the expected demand that
each parcel of real property within Community Facilities District No. 2016-2 will place on the
Facilities and on the benefit that each parcel will derive from the right to access the Facilities
and, accordingly, is hereby determined to be reasonable. The Special Tax (as defined in the
rate and method of apportionment of the special tax) shall be levied on each assessor’s parcel
in accordance with the rate and method of apportionment provided, however, that the Special
Tax shall not be levied after Fiscal Year 2057-58. The special tax is apportioned to each parcel
on the foregoing bases pursuant to Section 53325.3 of the Act and such special tax is not on or
based upon the ownership of real property or the assessed value of real property.
If special taxes of the District are levied against any parcel used for private residential
purposes, (i) the maximum special tax rate shall be specified as a dollar amount which shall be
calculated and established not later than the date on which the parcel is first subject to the
special tax because of its use for private residential purposes and shall not be increased over
time, except that it may be increased by an amount not to exceed two percent (2%) per year to
the extent permitted in the rate and method of apportionment of the special tax set forth in
Attachment “A,” (ii) the Special Tax shall not be levied after Fiscal Year 2057-58, and (iii) under
no circumstances will the special tax levied against any such parcel used for private residential
uses be increased as a consequence of delinquency or default by the owner or owners of any
other parcel or parcels within the District by more than ten percent above the amount that would
have been levied in that fiscal year had there never been any such delinquencies or defaults.
The City Manager of the City of Lake Elsinore, 130 South Main Street, Lake Elsinore,
California 92530, telephone number (951) 674-3124, will be responsible for preparing annually,
or authorizing a designee to prepare, a current roll of special tax levy obligations by assessor’s
parcel number and will be responsible for estimating future special tax levies pursuant to
Section 53340.2 of the Act.
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Section 6.In the event that a portion of the property within Community Facilities District No.
2016-2 shall become for any reason exempt, wholly or partially, from the levy of the special tax
specified in Attachment “A” hereto, or in the event of delinquencies in the payment of special
taxes levied, the City Council shall, on behalf of Community Facilities District No. 2016-2,
increase the levy to the extent necessary and permitted by law and these proceedings upon the
remaining property within Community Facilities District No. 2016-2 which is not exempt or
delinquent in order to yield the required debt service payments on any outstanding bonds of the
District, or to prevent the District from defaulting on any of its other obligations or liabilities;
provided, however, under no circumstances will the special tax levied against any parcel used
for private residential uses be increased as a consequence of delinquency or default by the
owner or owners of any other parcel or parcels within the District by more than ten percent
above the amount that would have been levied in that fiscal year had there never been any such
delinquencies or defaults. The amount of the special tax will be set in accordance with the rate
and method of apportionment of the special tax attached hereto as Attachment “A.” The
obligation to pay special taxes may be prepaid only as set forth in Section G of Attachment “A”
hereto.
Section 7.Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the
Streets and Highways Code, a continuing lien to secure each levy of the special tax shall attach
to all non-exempt real property in the District and this lien shall continue in force and effect until
the special tax obligation is prepaid and permanently satisfied and the lien canceled in
accordance with law or until collection of the special tax by the District ceases.
Section 8.Consistent with Section 53325.6 of the Act, the City Council finds and determines
that the land within Community Facilities District No. 2016-2, if any, devoted primarily to
agricultural, timber or livestock uses and being used for the commercial production of
agricultural, timber or livestock products is contiguous to other land within Community Facilities
District No. 2016-2 and will be benefited by the Facilities proposed to be provided within
Community Facilities District No. 2016-2.
Section 9.It is hereby further determined that there is no ad valorem property tax currently
being levied on property within proposed Community Facilities District No. 2016-2 for the
exclusive purpose of paying the principal of or interest on bonds or other indebtedness incurred
to finance the construction of capital facilities which provide the same services to the territory of
Community Facilities District No. 2016-2 as are proposed to be provided by the Facilities to be
financed by Community Facilities District No. 2016-2.
Section 10.Written protests against the establishment of the District have not been filed by
one-half or more of the registered voters within the boundaries of the District or by the property
owners of one-half (1/2) or more of the area of land within the District. The City Council hereby
finds that the proposed special tax has not been precluded by a majority protest pursuant to
Section 53324 of the Act.
Section 11.An election is hereby called for Community Facilities District No. 2016-2 on the
propositions of levying the special tax on the property within Community Facilities District No.
2016-2 and establishing an appropriations limit for the District pursuant to Section 53325.7 of
the Act and shall be consolidated with the election on the proposition of incurring bonded
indebtedness, pursuant to Sections 53351 and 53353.5 of the Act. The language of the
propositions to be placed on the ballot is attached hereto as Attachment “C.”
5
Section 12.The date of the election for Community Facilities District No. 2016-2 on the
propositions of incurring the bonded indebtedness, authorizing the levy of the special tax and
establishing an appropriations limit for the District shall be December 13, 2016, or such later
date as is consented to by the City Clerk of the City of Lake Elsinore; provided that, if the
election is to take place sooner than 90 days after December 13, 2016, then the unanimous
written consent of each qualified elector within the District to such election date must be
obtained. The polls shall be open for said election immediately following the close of the public
hearing on December 13, 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 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 Community
Facilities District No. 2016-2. The City Clerk has secured a certificate from the Registrar of
Voters of the County of Riverside certifying that there were no registered voters within the
District as of October 29, 2016. Accordingly, since there were fewer than 12 registered voters
within the District for each of the 90 days preceding December 13, 2016, the qualified electors
shall be the landowners within the District and each landowner, or the authorized representative
thereof, shall have one vote for each acre or portion thereof that such landowner owns within
Community Facilities District No. 2016-2, as provided in Section 53326 of the Act. The sole
landowner within the District has executed and delivered a waiver of certain election law
requirements and consenting to the holding of the election on December 13, 2016, which waiver
is on file with the City Clerk.
Section 13.The preparation of the Engineer’s Report is hereby ratified. The Engineer’s
Report, as submitted, is hereby approved and was made a part of the record of the public
hearing regarding the formation of Community Facilities District No. 2016-2. The Engineer’s
Report is ordered to be kept on file with the transcript of these proceedings and open for public
inspection.
Section 14.This Resolution shall be effective upon its adoption.
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Passed and Adopted at a regular meeting of the City Council of the City of Lake
Elsinore, California, this 13th day of December, 2016.
_____________________________
Brian Tisdale
Mayor
Attest:
__________________________
Susan M. Domen, MMC
City Clerk
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, do hereby certify
that Resolution No. ______ was adopted by the City Council of the City of Lake Elsinore,
California, at the Regular meeting of December 13, 2016, and that the same was adopted by
the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_____________________________
Susan M. Domen, MMC
City Clerk
A-1
ATTACHMENT “A”
RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 2016-2
OF THE CITY OF LAKE ELSINORE
(CANYON HILLS)
B-1
ATTACHMENT “B”
Types of Facilities
to Be Types of Facilities
to Be Financed by Community
Facilities District No. 2016-2 of the City of Lake Elsinore
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.
C-1
ATTACHMENT “C”
BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2016-2
OF THE CITY OF LAKE ELSINORE (CANYON HILLS)
SPECIAL TAX AND SPECIAL BOND ELECTION
December 13, 2016
PROPOSITION A: Shall Community Facilities District
No. 2016-2 of the City of Lake Elsinore (Canyon Hills)
(the “District”) incur an indebtedness and issue bonds in
the maximum principal amount of $27,500,000, with
interest at a rate or rates not to exceed the maximum
interest rate permitted by law, to finance the Facilities
and the Incidental Expenses described in the resolution
establishing the District, adopted by the City Council of
the City of Lake Elsinore on December 13, 2016 (the
“Resolution of Formation”)?
YES______
NO_______
PROPOSITION B: Shall a special tax with a rate and
method of apportionment as provided in Attachment “A”
to the Resolution of Formation be levied to pay for the
Facilities, Incidental Expenses and other purposes
described in the Resolution of Formation, including the
payment of the principal of and interest on bonds issued
to finance the Facilities and Incidental Expenses?
YES______
NO_______
PROPOSITION C: For each year commencing with
Fiscal Year 2016-2017, shall the appropriations limit, as
defined by subdivision (h) of Section 8 of Article XIII B of
the California Constitution, for Community Facilities
District No. 2016-2 be an amount equal to $5,000,000?
YES______
NO_______
RESOLUTION NO. _____
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY
FACILITIES DISTRICT NO. 2016-2 OF THE CITY OF LAKE ELSINORE
(CANYON HILLS) DETERMINING THE NECESSITY TO INCUR BONDED
INDEBTEDNESS IN AN AMOUNT NOT TO EXCEED $27,500,000 WITHIN
COMMUNITY FACILITIES DISTRICT NO. 2016-2 OF THE CITY OF LAKE
ELSINORE (CANYON HILLS) AND CALLING AN ELECTION THEREIN
Whereas, on October 25, 2016, the City Council of the City of Lake Elsinore (the “City Council”)
adopted Resolution No. 2016-120 stating its intention 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, as amended (the
“Act”); and,
Whereas, on October 25, 2016, the City Council also adopted Resolution No. 2016-121 stating
its intention to incur bonded indebtedness in the amount of up to $27,500,000 within proposed
Community Facilities District No. 2016-2 to finance (1) the purchase, construction, modification,
expansion, improvement or rehabilitation of public facilities identified in Attachment “B” to
Resolution No. 2016-120, and (2) the incidental expenses to be incurred in financing such public
facilities and forming and administering the District, as identified in Attachment “B” to Resolution
No. 2016-120; and,
Whereas, notice was published as required by law relative to the intention of the City Council to
form proposed Community Facilities District No. 2016-2 and to incur bonded indebtedness in
the amount of up to $27,500,000 within the boundaries of proposed Community Facilities
District No. 2016-2; and,
Whereas, on December 13, 2016, this City Council conducted a noticed public hearing to
determine whether it should proceed with the formation of Community Facilities District No.
2016-2, issue bonds to pay for the facilities and incidental expenses described in Resolution
No. 2016-120 and authorize the rate and method of apportionment of a special tax to be levied
within Community Facilities District No. 2016-2 for the purposes described in Resolution No.
2016-120; and,
Whereas, at said hearing all persons desiring to be heard on all matters pertaining to the
formation of Community Facilities District No. 2016-2, the levy of a special tax and the issuance
of bonds to pay for the cost of the proposed facilities were heard and a full and fair hearing was
held; and,
Whereas, the City Council subsequent to such hearing adopted Resolution No. 2016-___
establishing Community Facilities District No. 2016-2 (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 City 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
submittal of a proposition to issue bonded indebtedness to the voters of the District, being the
landowners within the proposed District, all as authorized and required by law.
2
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 $27,500,000 within Community Facilities District No. 2016-2.
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. 2016-2, 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 Community Facilities District No. 2016-2, 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. 2016-2 on the proposition of incurring the bonded
indebtedness. The proposition relative to incurring bonded indebtedness in the maximum
aggregate principal amount of $27,500,000 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 the District as described in the Resolution of Formation, which proposition
shall be in the form of Proposition B set forth in Attachment “A,” and on the proposition of
establishing an appropriations limit for the District, which proposition shall be in the form of
Proposition C set forth in Attachment “A.”
Section 8.The date of the special election for Community Facilities District No. 2016-2 on
the propositions of incurring the bonded indebtedness, authorizing the levy of the special tax
and setting an appropriations limit shall be December 13, 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 December 13, 2016, then the unanimous written consent of each qualified
elector within the District to such election date must be obtained. The polls shall be open for
said election immediately following the public hearing on December 13, 2016. The election
3
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 Community
Facilities District No. 2016-2. 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 the District as of
October 29, 2016. Accordingly, since there were fewer than 12 registered voters within the
District for each of the 90 days preceding December 13, 2016, the qualified electors shall be the
landowners within the District and each landowner, or the authorized representative thereof,
shall have one vote for each acre or portion thereof that such landowner owns within
Community Facilities District No. 2016-2, as provided in Section 53326 of the Act. The sole
landowner within the District has executed and delivered a waiver of certain election law
requirements and consenting to the holding of the election on December 13, 2016, which waiver
is on file with the City Clerk.
Section 9.This Resolution shall be effective upon its adoption.
Passed, and Adopted at a regular meeting of the City Council of the City of Lake Elsinore,
California, this 13th day of December, 2016.
_____________________________
Brian Tisdale
Mayor
Attest:
__________________________
Susan M. Domen, MMC
City Clerk
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, do hereby certify
that Resolution No. ______ was adopted by the City Council of the City of Lake Elsinore,
California, at the Regular meeting of December 13, 2016, and that the same was adopted by
the following vote:
AYES:
NOES:
ABSENT:
4
ABSTAIN:
Susan M. Domen, MMC
City Clerk
ATTACHMENT A
BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2016-2
OF THE CITY OF LAKE ELSINORE (CANYON HILLS)
SPECIAL TAX AND SPECIAL BOND ELECTION
December 13, 2016
PROPOSITION A: Shall Community Facilities District
No. 2016-2 of the City of Lake Elsinore (Canyon Hills)
(the “District”) incur an indebtedness and issue bonds in
the maximum principal amount of $27,500,000, with
interest at a rate or rates not to exceed the maximum
interest rate permitted by law, to finance the Facilities
and the Incidental Expenses described in the resolution
establishing the District, adopted by the City Council of
the City of Lake Elsinore on December 13, 2016 (the
“Resolution of Formation”)?
YES______
NO_______
PROPOSITION B: Shall a special tax with a rate and
method of apportionment as provided in Attachment “A”
to the Resolution of Formation be levied to pay for the
Facilities, Incidental Expenses and other purposes
described in the Resolution of Formation, including the
payment of the principal of and interest on bonds issued
to finance the Facilities and Incidental Expenses?
YES______
NO_______
PROPOSITION C: For each year commencing with
Fiscal Year 2016-2017, shall the appropriations limit, as
defined by subdivision (h) of Section 8 of Article XIII B of
the California Constitution, for Community Facilities
District No. 2016-2 be an amount equal to $5,000,000?
YES______
NO_______
RESOLUTION NO. __-___
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF
COMMUNITY FACILITIES DISTRICT NO. 2016-2 OF THE CITY OF LAKE
ELSINORE (CANYON HILLS) CERTIFYING ELECTION RESULTS
Whereas, the City Council of the City of Lake Elsinore called and duly held an election on
December 13, 2016 within the boundaries of 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 Resolution Nos. ______ and _______ for the purpose of presenting to the qualified
electors within the District Propositions A, B and C, attached hereto as Exhibit A; and,
Whereas, there has been presented to this City Council a certificate of the City Clerk
canvassing the results of the election, a copy of which is attached hereto as Exhibit B.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE HEREBY
FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS:
Section 1.Each of the above recitals is true and correct and is adopted by the legislative
body of the District.
Section 2.Propositions A, B and C presented to the qualified electors of the District on
December 13, 2016 were approved by more than two-thirds of the votes cast at said election
and Propositions A, B and C each has carried. The City Council, acting as the legislative body
of the District, is hereby authorized to levy on the land within the District the special tax
described in Proposition B for the purposes described therein and to take the necessary steps
to levy the special tax authorized by Proposition B and to issue bonds in an amount not to
exceed $27,500,000 specified in Proposition A.
Section 3.The City Clerk is hereby directed to record in the Assessor-County Clerk-
Recorder’s office of the County of Riverside within fifteen days of the date hereof a notice of
special tax lien with respect to the District which Bond Counsel to the District shall prepare in
the form required by Streets and Highways Code Section 3114.5.
Section 4.This Resolution shall be effective upon its adoption.
2
Passed and Adopted at a regular meeting of the City Council of the City of Lake Elsinore,
California, this 13th day of December, 2016.
_____________________________
Brian Tisdale
Mayor
Attest:
__________________________
Susan M. Domen, MMC
City Clerk
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, do hereby certify
that Resolution No. ______ was adopted by the City Council of the City of Lake Elsinore,
California, at the Regular meeting of December 13, 2016, and that the same was adopted by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________
Susan M. Domen, MMC
City Clerk
EXHIBIT A
COMMUNITY FACILITIES DISTRICT NO. 2016-2
OF THE CITY OF LAKE ELSINORE (CANYON HILLS)
SPECIAL TAX AND SPECIAL BOND ELECTION
December 13, 2016
You are entitled to cast _____ votes.
To vote, stamp a cross (+) in the voting square after the word “YES” or after the word
“NO”. All marks otherwise made are forbidden. All distinguishing marks are forbidden and
make the ballot void.
If you wrongly mark, tear, or deface this ballot, return it to the City Clerk and obtain
another.
PROPOSITION A: Shall Community Facilities District
No. 2016-2 of the City of Lake Elsinore (Canyon Hills)
(the “District”) incur an indebtedness and issue bonds in
the maximum principal amount of $27,500,000, with
interest at a rate or rates not to exceed the maximum
interest rate permitted by law, to finance the Facilities
and the Incidental Expenses described in the resolution
establishing the District, adopted by the City Council of
the City of Lake Elsinore on December 13, 2016 (the
“Resolution of Formation”)?
YES______
NO_______
PROPOSITION B: Shall a special tax with a rate and
method of apportionment as provided in Attachment “A”
to the Resolution of Formation be levied to pay for the
Facilities, Incidental Expenses and other purposes
described in the Resolution of Formation, including the
payment of the principal of and interest on bonds issued
to finance the Facilities and Incidental Expenses?
YES______
NO_______
PROPOSITION C: For each year commencing with
Fiscal Year 2016-2017, shall the appropriations limit, as
defined by subdivision (h) of Section 8 of Article XIII B of
the California Constitution, for Community Facilities
District No. 2016-2 be an amount equal to $5,000,000?
YES______
NO_______
EXHIBIT B
CERTIFICATE OF CITY CLERK
AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS
I, Susan M. Domen, City Clerk of the City of Lake Elsinore, do hereby certify that I have
examined the returns of the Special Tax and Bond Election for Community Facilities District
No. 2016-2 (Canyon Hills) of the City of Lake Elsinore (the “City”). The election was held in the
Lake Elsinore Cultural Center at 183 North Main Street, Lake Elsinore, California, on December
13, 2016. I caused to be delivered ballots to each qualified elector. ____ (__) ballots were
returned.
I further certify that the results of said election and the number of votes cast for and
against Propositions A, B and C are as follows:
PROPOSITION A PROPOSITION B PROPOSITION C
YES:YES:YES:
NO:NO:NO:
TOTAL:TOTAL:TOTAL:
Dated this 13th day of December, 2016.
Susan M. Domen, MMC
Susan M. Domen, MMC City Clerk
City of Lake Elsinore
ORDINANCE NO. ___-___
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE
ELSINORE, CALIFORNIA ACTING IN ITS CAPACITY AS THE
LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT
NO. 2016-2 OF THE CITY OF LAKE ELSINORE (CANYON
HILLS) AUTHORIZING THE LEVY OF SPECIAL TAXES
WHEREAS, on October 25, 2016, the City Council (the “City Council”) of the City of Lake
Elsinore (the “City”) adopted Resolution No. 2016-120 declaring its intention to form Community
Facilities District No. 2016-2 of the City of Lake Elsinore (the “District”) pursuant to the
Mello-Roos Community Facilities Act of 1982, as amended, comprising Chapter 2.5 of Part 1 of
Division 2 of Title 5 of the Government Code of the State of California (the “Act”), and its
Resolution No. 2016-121 declaring its intention to incur bonded indebtedness for the District;
and
WHEREAS, on December 13, 2016, after providing all notice required by the Act, the
City Council conducted a noticed public hearing required by the Act relative to the proposed
formation of the District, the proposed levy of a special tax therein to finance certain public
facilities described in Resolution No. 2016-120 and to secure the payment of any bonded
indebtedness of the District, and the proposed issuance of up to $27,500,000 of bonded
indebtedness as described in Resolution No. 2016-121; and
WHEREAS, at the December 13, 2016 public hearing, all persons desiring to be heard
on all matters pertaining to the formation of the District and the proposed levy of the special tax
to finance the facilities described in Resolution No. 2016-120 and to secure the payment of up
to $27,500,000 of bonded indebtedness of the District as described in Resolution No. 2016-121
(the “Bonds”) were heard and a full and fair hearing was held; and
WHEREAS, on December 13, 2016, the City Council adopted Resolution Nos. ______
and ______ which formed the District and called a special election within the District on
December 13, 2016 on three propositions relating to the levy of a special tax within the District
and the issuance of the Bonds and the establishment of an appropriations limit within the
District; and
WHEREAS, on December 13, 2016, a special election was held within 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 the District for the purposes described in Resolution
No. _____, the issuance of the Bonds as described in Resolution No. ______ and establishing
an appropriations limit for the District.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE
ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF THE DISTRICT OF THE CITY
OF LAKE ELSINORE (CANYON HILLS) ORDAINS AS FOLLOWS:
2
Section 1.The above recitals are all true and correct.
Section 2.By the passage of this Ordinance, the City Council authorizes and levies
special taxes within the District pursuant to Sections 53328 and 53340 of the Act at the rates
and in accordance with the rate and method of apportionment set forth in Attachment “A” to
Resolution No. ______, which is incorporated by reference herein (the “Rate and Method”).
Notwithstanding the foregoing, the special tax for the District shall not be levied until such time
as the special tax lien of Improvement Area B of Community Facilities District No. 2003-2 has
been extinguished with respect to the property within the District and a notice of cancellation
has been recorded to that effect in accordance with Section 53344 of the Act. The special taxes
are hereby levied commencing in the fiscal year specified in the Rate and Method and in each
fiscal year thereafter until payment in full of the Bonds (including any bonds issued to refund the
Bonds), payment of all costs of the public facilities authorized to be financed by the District, and
payment of all costs of administering the District.
Section 3.Each of the Mayor, the City Manager, the Assistant City Manager, or their
written designees (each, an “Authorized Officer”), acting alone, is hereby authorized and
directed each fiscal year to determine the specific special tax rates and amounts to be levied in
such fiscal year on each parcel of real property within the District, in the manner and as
provided in the Rate and Method. The special tax rate levied on a parcel pursuant to the Rate
and Method shall not exceed the maximum rate set forth in the Rate and Method for such
parcel, but the special tax may be levied at a lower rate. Each Authorized Officer is hereby
authorized and directed to provide all necessary information to the Treasurer-Tax Collector of
the County of Riverside and to otherwise take all actions necessary in order to effect proper
billing and collection of the special tax, so that the special tax shall be levied and collected in
sufficient amounts and at times necessary to satisfy the financial obligations of the District in
each fiscal year until the Bonds are paid in full, the facilities have been paid for, and provision
has been made for payment of all of the administrative costs of the District.
Section 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 Section F of the Rate and Method. No other properties or entities are exempt
from the special tax unless the properties or entities are expressly exempted in Resolution No.
______, or in a resolution of consideration to levy a new special tax or special taxes or to alter
the rate or method of apportionment or an existing special tax as provided in Section 53334 of
the Act.
Section 5.All of the collections of the special tax shall be used as provided for in the
Act, the Rate and Method and Resolution No. _______.
Section 6.The special tax 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 the City Council from time to time.
3
Section 7.As a cumulative remedy, if any amount levied as a special tax for
payment of the interest or principal of the Bonds (including any bonds issued to refund the
Bonds), together with any penalties and other charges accruing under this Ordinance, are not
paid when due, the City Council may, not later than four years after the due date of the last
installment of principal on the Bonds (including any bonds issued to refund the Bonds), order
that the same be collected by an action brought in the superior court to foreclose the lien of
such special tax, as authorized by the Act.
Section 8.The Mayor of the City 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 (15) days
after its passage at least once in The Press Enterprise, a newspaper of general circulation
published and circulated in the City of Lake Elsinore.
Section 9.The specific authorization for adoption of this Ordinance is pursuant to the
provisions of Section 53340 of the Act.
Section 10.The City Clerk is hereby authorized to transmit a certified copy of this
ordinance to the Treasurer-Tax Collector of the County of Riverside, 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.
Section 11.A full reading of this Ordinance is dispensed with prior to its final passage,
a written or printed copy having been available to the City Council and the public a day prior to
its final passage.
Section 12.This Ordinance shall take effect thirty days after its final passage.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Lake
Elsinore, California, this ____ day of December, 2016.
_____________________________
BRIAN TISDALE
MAYOR
ATTEST:
__________________________
SUSAN M. DOMEN, MMC
CITY CLERK
APPROVED AS TO FORM:
__________________________
BARBARA ZEID LEIBOLD
CITY ATTORNEY
REBECCA SPENCER
Registrar of Voters
State of California
REGISTRAR OF VOTERS
COUNTY OF RIVERSIDE
CERTIFICATE OF REGISTRAR OF VOTERS
) ss
County of Riverside )
ART TINOCO
Assistant Registrar of Voters
I, Rebecca Spencer, Registrar of Voters of said County, hereby certify that:
(A) I have been furnished a map describing the proposed boundary of Community
Facilities District No. 2016-2, (Canyon Hills), of the City of Lake Elsinore, of the County of
Riverside, State of California;
(B) On October 29, 2016, 1 conducted, or caused to be conducted, a review of the
voter registration records of the County of Riverside for the purpose of determining the number of
voters registered to vote within the proposed boundary of Community Facilities District No. 2016-
2, (Canyon Hills), of the City of Lake Elsinore, of the County of Riverside.
(C) There are 0 registered voters residing within the proposed boundary of Community
Facilities District No. 2016-2, (Canyon Hills), of the City of Lake Elsinore, of the County of
Riverside.
IN WITNESS WHEREOF, I have executed this Certificate on this 291h day of October 2016.
Rebecca Spencer
Registrar of Voters
Christopher Neubauer
Chief Deputy Registrar of Voters
2724 Gateway Drive I Riverside, CA 92507.0918
(951) 486-7200 1 TTY (951) 697-8966 1 FAX (951) 486-7272
www.voteinfo.net
City of Lake Elsinore
CFD No. 2016-2 (Canyon Hills)
Public Hearing Report
December 13, 2016
Table of Contents
Sections Page _____________________________________________
1 Introduction ________________________________________________ 1
2 Description of Services _____________________________________________ 2
3 Cost Estimate ________________________________________________ 3
4 Proposed Development _____________________________________________ 4
5 Rate and Method of Apportionment ____________________________________ 5
6 Certifications ________________________________________________ 6
Tables Page
3-1 Cost Estimate ________________________________________________ 3
Appendices Page _____________________________________________
A Rate and Method of Apportionment _____________________________________
B Boundary Map _________________________________________________
C Resolution of Intention _______________________________________________
1 Introduction Page | 1
City of Lake Elsinore
CFD No. 2016-2 (Canyon Hills)
Public Hearing Report
Background
On October 25, 2016, the City Council of the City of Lake Elsinore (the “City”), did, pursuant to the provisions of the “Mello-
Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State
of California, (the “Act”) ordered the filing of a written Public Report (the “Public Hearing Report”) with the City for the
proposed Community Facilities District. This Community Facilities District shall be referred to as Community Facilities
District No. 2016-2 (Canyon Hills) of the City of Lake Elsinore (the “CFD No. 2016-2” or the “District”).
Purpose of Public Hearing Report
On October 25, 2016, the City Council adopted a Resolution of Intention to form CFD No. 2016-2, Resolution No. 2016-120
(the “Resolution of Intention”), and ordering said Public Hearing Report. This Public Hearing Report is submitted pursuant
to Section 53321.5 of the Act, as well as the Resolution of Intention. The law and the Resolution of Intention directs that said
Public Hearing Report generally contain a description of the public services to be provided, and an estimate of the costs of
providing such public services.
For particulars, reference is made to the Resolution of Intention as previously approved and adopted and is included in
Appendix C.
2 Description of Services Page | 2
City of Lake Elsinore
CFD No. 2016-2 (Canyon Hills)
Public Hearing Report
NOW, THEREFORE, the undersigned, authorized representative of Spicer Consulting Group, LLC, the appointed
responsible officer, or person directed to prepare the Public Hearing Report, does hereby submit the following data:
Improvements
A Community Facilities District may pay for facilities which may include all amounts necessary to eliminate any fixed special
assessment liens or to pay, repay, or defease any obligation to pay for any indebtedness secured by any tax, fee, charge,
or assessment levied, provide for the purchase, construction, expansion, or rehabilitation for any real or other tangible
property with an estimated useful life of five (5) years or longer, which is necessary to meet increased demands placed
upon local agencies as a result of development and/or rehabilitation occurring within the District.
The types of facilities that are proposed by CFD No. 2016-2 and financed with the proceeds of special taxes and bonds
issued by CFD No. 2016-2 consist of 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; and
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.
Capitalized terms used and not defined herein shall have the meaning set forth in the Rate and Method of Apportionment of
Special Taxes for the District.
Incidental Expenses
The Incidental Expenses to be paid from bond proceeds and/or special taxes include:
All costs associated with the creation of CFD No. 2016-2, the issuance of bonds, the determination of the amount of special
taxes to be levied, costs incurred in order to carry out the authorized purposes of CFD No. 2016 -2, including legal fees, fees
of consultants, engineering, planning, designing and the annual costs to administer CFD No. 2016-2 and any obligations.
The description of the eligible public facilities, services and incidental expenses above are preliminary and general in nature.
The final plans and specifications approved by the applicable public agency may show substitutes or modifications in order
to accomplish the work or serve the new development and any such substitution or modification shall not constitute a change
or modification in the proceedings relating to CFD No. 2016-2.
3 Cost Estimate Page | 3
City of Lake Elsinore
CFD No. 2016-2 (Canyon Hills)
Public Hearing Report
Below is the estimated cost of services to be provided to the District.
a) The cost estimate of facilities, including incidental expenses, to be financed through the issuance of CFD No. 2016-
2 Bonds is estimated to be $19,385,000 based upon current dollars (Fiscal Year 2017-18).
b) For further particulars please reference Table 3-1 below and incorporated herein by reference.
c) Pursuant to Section 53340 of the Act, the proceeds of any special tax levied and collected by CFD No. 2016-2 may
be used only to pay for the cost of providing public facilities, services, and incidental expenses. As defined by the
Act, incidental expenses include, but are not limited to, the annual costs associated with determination of the amount
of special taxes, collection of special taxes, payment of special taxes, or costs otherwise incurred in order to carry
out the authorized purposes of the Community Facilities District. The incidental expenses associated with the annual
administration of CFD No. 2016-2 are estimated to be $30,000 in the initial Fiscal Year. However, it is anticipated
that the incidental expenses will vary due to inflation and other factors that may not be foreseen today, and the
actual incidental expenses may exceed these amounts accordingly.
Table 3-1
Cost Estimate
City of Lake Elsinore Facilities Total Bond Allocation(1)
Storm Drain $3,200,000 $3,200,000
Sewer and Water $1,350,000 $1,350,000
Roads and Traffic Signals $950,000 $295,821
Soft Costs $1,000,000 $0
Other Facilities $2,700,000 $0
Total City Facilities $9,200,000 $4,845,821
City of Lake Elsinore Fees Total Bond Allocation(1)
Library Fee $68,400 $0
Development Agreement Fee $456,000 $0
Total City Fees $524,400 $0
Elsinore Valley Municipal Water District Total Bond Allocation(1)
Water Capacity Charge (3/4” Meter) $1,531,389 $0
Water Capacity Charge (1.5’ Irrigation Meter) $260,847 $0
Sewer Capacity Charge $3,105,024 $0
Total EVMWD $4,897,260 $0
CFD Prepayment Total Bond Allocation(1)
CFD 2003-2 IA B Lien Prepayment $11,912,979 $11,912,979
Total Prepayment $11,912,979 $11,912,979
Total Eligible Fees/Improvements $26,534,639 $16,758,800
Incidental Financing Costs $2,626,200
Total Funded by Bond Proceeds $19,385,000
Total Fees/Improvements to be Funded by Developer $9,775,839
(1) Amounts are allocated based upon estimated bond sizing and may change abased upon market conditions at the time
of bond issuance.
4 Proposed Development Page | 4
City of Lake Elsinore
CFD No. 2016-2 (Canyon Hills)
Public Hearing Report
The CFD No. 2016-2 encompasses the eighth phase of the 1,969-acre master planned community known as Canyon Hills
being developed by Pardee Homes. CFD No. 2016-2 will develop 456 single family residential units and an estimated
55,000 square foot commercial development within Phase 8 Planning Areas 1A – 1C and 2A – 2D of Tracts 36117 and
36118 located in the City of Lake Elsinore (the “City”) on approximately 166.08 gross acres. The District is located southwest
of the intersection of Railroad Canyon Road and Canyon Hills Road. The southern boundary of the District is adjacent to
Railroad Canyon Road and is approximately 2-1/2 miles east of the Interstate 15 Freeway. As of Fiscal Year 2016-17 the
proposed CFD No. 2016-2 includes the following Assessor's Parcel Numbers: 363-210-014, 363-210-015, 363-210-016,
363-210-034, and 363-210-035.
A map showing the boundaries of CFD No. 2016-2 is included in Appendix B.
5 Rate and Method of Apportionment Page | 5
City of Lake Elsinore
CFD No. 2016-2 (Canyon Hills)
Public Hearing Report
The Rate and Method of Apportionment allows each property owner within CFD No. 2016-2 to estimate the annual Special
Tax amount that would be required for payment. The Rate and Method of Apportionment of the Special Tax established
pursuant to these proceedings, is attached hereto as Appendix A (the “Rate and Method”). The Special Tax will be collected
in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties,
the same procedure, sale and lien priority in the case of delinquency; provided, however, that the CFD Administrator may
directly bill the Special Taxes, may collect Special Taxes at a different time or in a different manner if necessary to meet
the financial obligations, and provided further that CFD No. 2016-2 may covenant to foreclose and may actually foreclose
on parcels having delinquent Special Taxes as permitted by the Act.
All of the property located within CFD No. 2016-2, unless exempted by law or by the Rate and Method proposed for CFD
No. 2016-2, shall be taxed for the purpose of providing necessary facilities to serve the District. On each July 1, commencing
on July 1, 2018 the Maximum Special Tax shall increase by two percent (2.0%). The Boundary Map for CFD No. 2016-2
is attached hereto as Appendix B. Pursuant to Section 53325.3 of the Act, the tax imposed “is a Special Tax and not a
special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property.” The
Special Tax may be based on the benefit received by property, the cost of making facilities or authorized services available
or other reasonable basis as determined by the City, although the Special Tax may not be apportioned on an ad valorem
basis pursuant to Article XIIIA of the California Constitution. A property owner within the District may choose to prepay in
whole or in part the Special Tax. The available method for so doing is described in Section G of the Rate and Method
(“Prepayment of Special Tax”).
For each year that any Bonds are outstanding the Special Tax shall be levied on all parcels subject to the Special Tax. If
any delinquent Special Taxes remain uncollected prior to or after all Bonds are retired, the Special Tax may be levied to the
extent necessary to reimburse CFD No. 2016-2 for uncollected Special Taxes associated with the levy of such Special
Taxes, but the Special Tax shall not be levied after 2057-2058 Fiscal Year.
For particulars as to the Rate and Method for CFD No. 2016-2, see the attached and incorporated in Appendix A.
6 Certifications Page | 6
City of Lake Elsinore
CFD No. 2016-2 (Canyon Hills)
Public Hearing Report
Based on the information provided herein, it is my opinion that the described services herein are those that are necessary
to meet increased demands placed upon the City of Lake Elsinore as a result of development occurring within the CFD No.
2016-2 and benefits the lands within said CFD No. 2016-2. Further, it is my opinion that the special tax rates and method
of apportionment, as set forth herein, are fair and equitable, uniformly applied and not discriminating or arbitrary.
Date: December 13, 2016 SPICER CONSULTING GROUP, LLC
__________________________
SHANE SPICER
SPECIAL TAX CONSULTANT FOR
CITY OF LAKE ELSINORE
RIVERSIDE COUNTY
STATE OF CALIFORNIA
Appendix A
Rate and Method of Apportionment
City of Lake Elsinore
Community Facilities District No. 2016‐2 (Canyon Hills) Page 1
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2016‐2 (CANYON HILLS)
OF THE CITY OF LAKE ELSINORE
A Special Tax (all capitalized terms are defined in Section A, “Definitions”, below) shall be applicable to
each Assessor’s Parcel of Taxable Property located within the boundaries of the City of Lake Elsinore
Community Facilities District No. 2016‐2 (Canyon Hills) ("CFD No. 2016‐2"). The amount of Special Tax to
be levied in each Fiscal Year, on an Assessor’s Parcel, shall be determined by the City Council of the City
of Lake Elsinore, acting in its capacity as the legislative body of CFD No. 2016‐2 by applying the appropriate
Special Tax for Developed Property, Approved Property, Undeveloped Property, and Provisional
Undeveloped Property that is not Exempt Property as set forth below. All of the real property, unless
exempted by law or by the provisions hereof in Section F, shall be taxed for the purposes, to the extent
and in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or
if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final
map, parcel map, condominium plan, or other recorded County parcel map or instrument. The square
footage of an Assessor’s Parcel is equal to the Acreage multiplied by 43,560.
"Act" means the Mello‐Roos Communities Facilities Act of 1982, as amended, being Chapter 2.5
(commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code of the State of
California.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to
the administration of CFD No. 2016‐2: the costs of computing the Special Taxes and preparing the Special
Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the
Special Taxes (whether by the City or otherwise); the costs of remitting Special Taxes A to the Trustee; the
costs of the Trustee (including legal counsel) in the discharge of the duties required of it under the
Indenture; the costs to the City, CFD No. 2016‐2 or any designee thereof of complying with arbitrage
rebate requirements; the costs to the City, CFD No. 2016‐2 or any designee thereof of complying with
disclosure requirements of the City, CFD No. 2016‐2 or obligated persons associated with applicable
federal and state securities laws and the Act; the costs associated with preparing Special Tax disclosure
statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No.
2016‐2 or any designee thereof related to an appeal of the Special Tax; the costs associated with the
release of funds from an escrow account; and the City’s annual administration fees and third party
expenses. Administration Expenses shall also include amounts estimated by the CFD Administrator or
advanced by the City or CFD No. 2016‐2 for any other administrative purposes of CFD No. 2016‐2, including
attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of
delinquent Special Taxes.
"Approved Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map
that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied,
and (ii) that have not been issued a building permit on or before March 1st preceding the Fiscal Year in
which the Special Tax is being levied.
"Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned
Assessor’s Parcel Number.
"Assessor’s Parcel Map" means an official map of the Assessor of the County designating parcels by
Assessor’s Parcel Number.
City of Lake Elsinore
Community Facilities District No. 2016‐2 (Canyon Hills) Page 2
"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for
purposes of identification.
"Assigned Special Tax" means the Special Tax of that name described in Section D below.
"Backup Special Tax" means the Special Tax of that name described in Section D below.
"Boundary Map" means a recorded map of the CFD which indicates the boundaries of the CFD.
"Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, notes,
certificates of participation, long‐term leases, loans from gov ernment agencies, or loans from banks, other
financial institutions, private businesses, or individuals, or long‐term contracts, or any refunding thereof,
to which Special Tax within CFD No. 2016‐2 have been pledged.
"Building Permit" means the first legal document issued by a local agency giving official permission for
new construction. For purposes of this definition, “Building Permit” may or may not include any
subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are
issued or changed by the City after the first original issuance, as determined by the CFD Administrator as
necessary to fairly allocate Special Tax to the Assessor’s Parcel, provided that following such
determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property
will be at least 1.1 times maximum annual debt service on all outstanding Bonds plus the estimated annual
Administrative Expenses.
"Building Square Footage" or "BSF" means the square footage of assessable internal living space,
exclusive of garages or other structures not used as living space, as determined by reference to the
Building Permit for such Assessor’s Parcel.
"Calendar Year" means the period commencing January 1 of any year and ending t he following December
31.
“CFD Administrator" means an official of the City, or designee thereof, responsible for determining the
Special Tax Requirement, and providing for the levy and collection of the Special Taxes.
"CFD” or “CFD No. 2016‐2" means Community Facilities District No. 2016‐2 (Canyon Hills) established by
the City under the Act.
"CFD No. 2003‐2 IA B" means City of Lake Elsinore Community Facilities District No. 2003‐2 IA B (Canyon
Hills).
“CFD No. 2003‐2 IA B Annual Special Tax” means the Annual Special Tax actually levied for CFD No. 2003‐
2 IA B.
“City” means the City of Lake Elsinore.
"City Council" means the City Council of the City of Lake Elsinore, acting as the Legislative Body of CFD
No. 2016‐2, or its designee.
“Condominium Plan" means a condominium plan as set forth in the California Civil Code, Section 1352.
"County" means the County of Riverside.
"Developed Property" means all Assessor’s Parcels of Taxable Property that: (i) are included in a Final
Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being
City of Lake Elsinore
Community Facilities District No. 2016‐2 (Canyon Hills) Page 3
levied, and (ii) a Building Permit for new construction was issued on or before March 1st preceding the
Fiscal Year in which the Special Tax is being levied.
"Exempt Property" means all Assessor’s Parcels designated as being exempt from Special Taxes as
provided for in Section F.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line
adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or
recordation of a Condominium Plan pursuant to California Civil Code Section 1352 that creates individual
lots for which Building Permits may be issued without further subdivision.
"Fiscal Year" means the period commencing on July 1st of any year and ending the following June 30th.
“Indenture” means the indenture, fiscal agent agreement, resolution or other instrument pursuant to
which Bonds are issued, as modified, amended and/or supplemented from time to time, and any
instrument replacing or supplementing the same.
“Land Use Category” means any of the categories listed in Table 1 of Section D.
"Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section D
below, that can be levied by CFD No. 2016‐2 in any Fiscal Year on any Assessor’s Parcel.
“Multifamily Property” means all Assessor’s Parcels of Developed Property for which a Building Permit
has been issued for the purpose of constructing a building or buildings comprised of attached Residential
Units available for rental by the general public, not for sale to an end user, and under common
management, as determined by the CFD Administrator.
"Non‐Residential Property" or “NR” means all Assessor's Parcels of Taxable Property for which a building
permit(s) was issued for a non‐residential use. The CFD Administrator shall make the determination if an
Assessor’s Parcel is Non‐Residential Property.
"Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax
obligation for an Assessor’s Parcel, as described in Section G.2.
"Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an
Assessor’s Parcel, as described in Section G.1.
“Proportionately” means for Taxable Property for Special Tax that is (i) Develope d Property, that the ratio
of the actual Special Tax levy to the Assigned Special Tax is the same for all Assessor’s Parcels of Developed
Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax
is the same for all Assessor’s Parcels of Approved Property, and (iii) Undeveloped Property, Provisional
Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax
per Acre is the same for all Assessor’s Parcels of Undeveloped Property, Provisional Undeveloped
Property.
"Provisional Undeveloped Property" means all Assessor’s Parcels of Taxable Property that would
otherwise be classified as Exempt Property pursuant to the provisions of Section F, but cannot be
classified as Exempt Property because to do so would be reduce the Acreage of all Taxable Property
below the required minimum Acreage set forth in Sections F.
"Residential Property" means all Assessor’s Parcels of Developed Property for which a building permit
has been issued for purposes of constructing one or more Residential Units.
“Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by
one or more persons, as determined by the CFD Administrator.
City of Lake Elsinore
Community Facilities District No. 2016‐2 (Canyon Hills) Page 4
“Single Family Residential Property” means all Assessor’s Parcels of Residential Property other than
Multifamily Property on an Assessor’s Parcel.
"Special Tax" means any of the special taxes authorized to be levied within CFD No. 2016‐2 pursuant to
the Act to fund the Special Tax Requirement.
"Special Tax Requirement " means the amount required in any Fiscal Year to pay: (i) the debt service or
the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year,
(ii) Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account,
(iv) any amount required to establish or replenish any reserve funds established in association with the
Bonds, (v) an amount equal to any anticipated shortfall due to Special Tax delinquencies, and (vi) the
collection or accumulation of funds for the acquisition or construction of facilities authorized by CFD No.
2016‐2 provided that the inclusion of such amount does not cause an increase in the levy of Special Tax
on Undeveloped Property as set forth in Step Three of Section E., less (vii) any amounts available to pay
debt service or other periodic costs on the Bonds pursuant to the Indenture.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2016‐2, which are not Exempt Property.
“Taxable Unit” means either a Residential Unit or an Acre.
"Tract(s)" means an area of land within a subdivision identified by a particular tract number on a Final
Map approved for the subdivision.
“Trustee” means the trustee, fiscal agent, or paying agent under the Indenture.
"Undeveloped Property" means all Assessor’s Parcels of Taxable Property which are not Developed
Property, Approved Property, Provisional Undeveloped Property.
B. SPECIAL TAX
Commencing Fiscal Year 2017‐2018 and for each subsequent Fiscal Year, upon determination by the CFD
Administrator that the Assessor’s Parcels within CFD No. 2016‐2 are no longer required to pay the CFD
No. 2003‐2 IA B Annual Special Tax, the City Council shall levy Special Taxes on all Taxable Property, up to
the applicable Maximum Special Tax to fund the Special Tax Requirement; provided that in no event shall
the City Council levy the Special Tax on the Taxable Property in the District so long as such Taxable
Property is subject to the levy of Special Taxes by CFD 2003‐2 IA B.
C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX
Each Fiscal Year, beginning with Fiscal Year 2017‐2018, each Assessor’s Parcel within CFD No. 2016‐2 shall
be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable
Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or
Provisional Undeveloped Property.
Assessor’s Parcels of Developed Property shall further be classified as Residential Property or Non‐
Residential Property. Each Assessor’s Parcel of Residential Property shall further be classified as a Single
Family Residential Property, or Multifamily Property. Each Assessor’s Parcel of Single Family Residential
Property shall be further categorized into Land Use Categories based on its Building Square Footage and
assigned to its appropriate Assigned Special Tax rate.
City of Lake Elsinore
Community Facilities District No. 2016‐2 (Canyon Hills) Page 5
D. MAXIMUM SPECIAL TAX
1. Developed Property
The Maximum Special Tax for each Assessor’s Parcel of Single Family Residential Property in any Fiscal
Year shall be the greater of (i) the Assigned Special Tax or (ii) the Backup Special Tax.
The Maximum Special Tax for each Assessor’s Parcel of Non‐Residential Property or Multifamily
Residential Property shall be the applicable Assigned Special Tax described in Table 1 of Section D.
a. Assigned Special Tax
Each Fiscal Year, each Assessor’s Parcel of Single Family Residential Property, Multifamily Property, or
Non‐Residential Property shall be subject to an Assigned Special Tax. The Assigned Special Tax
applicable to an Assessor's Parcel of Developed Property for Fiscal Year 2017‐2018 shall be determined
pursuant to Table 1 below.
TABLE 1
ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
Land Use Category
Taxable
Unit Building Square Footage
Assigned
Special Tax Per
Taxable Unit
1. Single Family Residential Property RU Less than 1,175 sq. ft $1,352.47
2. Single Family Residential Property RU 1,175 sq. ft to 1,324 sq. ft $1,472.54
3. Single Family Residential Property RU 1,325 sq. ft to 1,549 sq. ft $1,667.82
4. Single Family Residential Property RU 1,550 sq. ft to 1,649 sq. ft $1,787.89
5. Single Family Residential Property RU 1,650 sq. ft to 1,749 sq. ft $1,906.65
6. Single Family Residential Property RU 1,750 sq. ft to 1,949 sq. ft $1,975.26
7. Single Family Residential Property RU 1,950 sq. ft to 2,199 sq. ft $2,042.55
8. Single Family Residential Property RU 2,200 sq. ft to 2,449 sq. ft $2,282.70
9. Single Family Residential Property RU 2,450 sq. ft to 2,699 sq. ft $2,402.77
10. Single Family Residential Property RU 2,700 sq. ft to 2,949 sq. ft $2,524.16
11. Single Family Residential Property RU Greater than 2,949 sq. ft $2,762.99
12. Multifamily Property RU N/A $791.69
13. Non‐Residential Property Acre N/A $6,597.39
On each July 1, commencing July 1, 2018, the Assigned Special Tax rate for Developed Property shall
be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
b. Multiple Land Use Categories
In some instances an Assessor’s Parcel of Developed Property may contain more than one Land Use
Type. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of the Maximum Special
Tax for all Land Use Categories located on the Assessor’s Parcel. The CFD Administrator’s allocation to
each type of property shall be final.
c. Backup Special Tax
The Backup Special Tax for an Assessor’s Parcel within a Final Map classified or to be classified as Single
Family Property shall be $2,483 per unit. This Backup Special Tax has been established based on the
land use configurations shown on the Final Map. In the event any portion of the Final Map is changed
City of Lake Elsinore
Community Facilities District No. 2016‐2 (Canyon Hills) Page 6
or modified, the Backup Special Tax for all Assessor’s Parcels within such changed or modified area
shall be $17,307 per Acre.
In the event any superseding Final Map is recorded as a Final Map within the Boundaries of the CFD,
the Backup Special Tax for all Assessor’s Parcels within such Final Map shall be $17,307 per Acre.
The Backup Special Tax shall not apply to Multifamily Residential Property, or Non‐Residential
Property.
On each July 1, commencing July 1, 2018, the Backup Special Tax rate shall be increased by two percent
(2.00%) of the amount in effect in the prior Fiscal Year.
2. Approved Property
The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be classified as
Single Family Property shall be the Backup Special Tax computed pursuant to Section D.1.c above.
The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be classified as
Multifamily Residential Property or Non‐Residential Property shall be $17,307 per Acre.
On each July 1, commencing July 1, 2018, the Maximum Special Tax rate for Approved Property shall
be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
3. Undeveloped Property and Provisional Undeveloped Property that is not Exempt Property
pursuant to the provisions of Section F
The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property and Provisional
Undeveloped Property that is not Exempt Property shall be equal to the product of $17,307 multiplied
by the Acreage of such Assessor’s Parcel.
On each July 1, commencing July 1, 2018, the Maximum Special Tax rate for Undeveloped and
Provisional Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect
in the prior Fiscal Year.
E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing Fiscal Year 2017‐2018 and for each subsequent Fiscal Year, the City Council shall levy Special
Taxes on all Taxable Property in accordance with the following steps:
Step One: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed
Property at up to 100% of the applicable Assigned Special Tax rates in Table 1 to satisfy
the Special Tax Requirement.
Step Two: If additional moneys are needed to satisfy the Special Tax Requirement after the first step
has been completed, the Special Tax shall be levied Proportionately on each Assessor’s
Parcel of Approved Property at up to 100% of the Maximum Special Tax applicable to each
such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.
Step Three: If additional moneys are needed to satisfy the Special Tax Requirement after the first two
steps have been completed, the Annual Special Tax shall be levied Proportionately on
each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax
City of Lake Elsinore
Community Facilities District No. 2016‐2 (Canyon Hills) Page 7
applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax
Requirement.
Step Four: If additional moneys are needed to satisfy the Special Tax Requirement after the first
three steps have been completed, then the Special Tax on each Assessor's Parcel of
Developed Property whose Maximum Special Tax is the Backup Special Tax shall be
increased Proportionately from the Assigned Special Tax up to 1 00% of the Backup Special
Tax as needed to satisfy the Special Tax Requirement.
Step Five: If additional moneys are needed to satisfy the Special Tax Requirement after the first four
steps have been completed, the Special Tax shall be levied Proportionately on each
Assessor’s Parcel of Provisional Undeveloped Property up to 100% of the Maximum
Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax
Requirement.
Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal Year against
any Assessor’s Parcel of Residential Property as a result of a delinquency in the payment of the Special
Tax applicable to any other Assessor’s Parcel be increased by more than ten percent (10%) above the
amount that would have been levied in that Fiscal Year had there never been any such delinquency or
default.
F. EXEMPTIONS
The City shall classify as Exempt Property, in the following order of priority, (i) Assessor’s Parcels which
are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of
California, Federal or other local governments, including school districts, (ii) Assessor’s Parcels which are
used as places of worship and are exempt from ad valorem property taxes because they are owned by a
religious organization, (iii) Assessor’s Parcels which are owned by, irrevocably offered for dedication,
encumbered by or restricted in use by a homeowners' association, (iv) Assessor’s Parcels with public or
utility easements making impractical their utilization for other than the purposes set forth in the
easement, (v) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely
for public uses, or (vi) Assessor’s Parcels restricted to other types of public uses determined by the City
Council, provided that no such classification would reduce the sum of all Taxable Property to less than
102.01 Acres.
Notwithstanding the above, the City Council shall not classify an Assessor’s Parcel as Exempt Property if
such classification would reduce the sum of all Taxable Property to less than 102.01 Acres. Assessor's
Parcels which cannot be classified as Exempt Property because such classification would reduce the
Acreage of all Taxable Property to less than 102.01 Acres will be classified as Provisional Undeveloped
Property, and will be subject to Special Tax pursuant to Step Five in Section E.
G. PREPAYMENT OF SPECIAL TAX
The following additional definitions apply to this Section G:
“CFD Public Facilities” means $19,195,434 expressed in 2017 dollars, which shall increase by the
Construction Inflation Index on July 1, 2018, and on each July 1 thereafter, or such lower amount (i)
determined by the City Council as sufficient to provide the public facilities under the authorized bonding
program for CFD No. 2016‐2, or (ii) determined by the City Council concurrently with a covenant that it
will not issue any more Bonds to be supported by Special Tax levied under this Rate and Method of
Apportionment.
City of Lake Elsinore
Community Facilities District No. 2016‐2 (Canyon Hills) Page 8
“Construction Fund” means an account specifically identified in the Indenture or functionally equivalent
to hold funds, which are currently available for expenditure to acquire or construct public facilities eligible
under CFD No. 2016‐2.
“Construction Inflation Index” means the annual percentage change in the Engineering News‐Record
Building Cost Index for the city of Los Angeles, measured as of the Calendar Year which ends in the
previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall
be another index as determined by the City that is reasonably comparable to the Engineering News‐
Record Building Cost Index for the city of Los Angeles.
“Future Facilities Costs” means the CFD Public Facilities minus public facility costs available to be funded
through existing construction or escrow accounts or funded by the Outstanding Bonds, and minus public
facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of
prepayment.
“Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of Special Tax
which will remain outstanding after the first interest and/or principal payment date following the current
Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of
Special Tax.
1. Prepayment in Full
The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i) Assessor’s Parcels
of Developed Property, (ii) Assessor’s Parcels of Approved Property or Undeveloped Property for which a
Building Permit has been issued, (iii) Approved or Undeveloped Property for which a Building Permit has
not been issued, and (iv) Assessor’s Parcels of Public Property or Property Owner’s Association Property
that are not Exempt Property pursuant to Section F. The Maximum Special Tax obligation applicable to
an Assessor’s Parcel may be fully prepaid and the obligation to pay the Special Tax for such Assessor’s
Parcel permanently satisfied as described herein; provided that a prepayment may be made only if there
are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An
owner of an Assessor’s Parcel intending to prepay the Maximum Special Tax obligation for such Assessor’s
Parcel shall provide the CFD Administrator with written notice of intent to prepay, and within 5 business
days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non‐
refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Prepayment
Amount (as defined below) for the Assessor’s Parcel. Within 15 days of receipt of such non‐refundable
deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s
Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to
be redeemed with the proceeds of such prepaid Special Taxes.
The Prepayment Amount (defined below) shall be calculated as follows (capitalized terms are defined
below):
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Equals: Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as follows:
City of Lake Elsinore
Community Facilities District No. 2016‐2 (Canyon Hills) Page 9
1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.
2. For an Assessor’s Parcel of Developed Property, compute the Maximum Special Tax for the
Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped Property for which
a Building Permit has been issued, compute the Maximum Special Tax for the Assessor’s Parcel as
though it was already designated as Developed Property, based upon the Building Permit which has
been issued for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped
Property for which a Building Permit has not been issued, Public Property or Property Owner’s
Association Property to be prepaid, compute the Maximum Special Tax for the Assessor’s Parcel.
3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount of Special
Taxes that could be levied at the Maximum Special Tax at build out of all Assessor’s Parcels of Taxable
Property based on the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property
not including any Assessor’s Parcels for which the Special Tax obligation has been previously prepaid.
4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the
Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the
Prepayment Amount (the “Bond Redemption Amount”).
5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the
Outstanding Bonds to be redeemed (the “Redemption Premium”).
6. Determine the Future Facilities Costs.
7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined pursuant to
paragraph 6 to determine the amount of Future Facilities Costs for the Assessor’s Parcel (the “Future
Facilities Amount”).
8. Determine the amount needed to pay interest on the Bond Redemption Amount from the first
bond interest and/or principal payment date following the current Fiscal Year until the earliest
redemption date for the Outstanding Bonds on which Bonds can be redeemed from Special Tax
prepayments.
9. Determine the Special Taxes levied on the Assessor’s Parcel in the current Fiscal Year which
have not yet been paid.
10. Determine the amount the CFD Administrator reasonably expects to derive from the investment
of the Bond Redemption Amount and the Redemption Premium from the date of prepayment until
the redemption date for the Outstanding Bonds to be redeemed with the Prepayment Amount.
11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived
pursuant to paragraph 10 (the “Defeasance Amount”).
12. Verify the administrative fees and expenses of the CFD, inc luding the cost of computation of the
Prepayment Amount, the cost to invest the Prepayment Amount, the cost of redeeming the
Outstanding Bonds, and the cost of recording notices to evidence the prepayment of the Maximum
Special Tax obligation for the Assessor’s Parcel and the redemption of Outstanding Bonds (the
“Administrative Fees and Expenses”).
13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of: (a) the expected
reduction in the reserve requirement (as defined in the Indenture), if any, associated with the
redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by
City of Lake Elsinore
Community Facilities District No. 2016‐2 (Canyon Hills) Page 10
subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption
of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the
prepayment date, but in no event shall such amount be less than zero.
14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption
Premium, the Future Facilities Amount, the Defeasance Amount and the Administrative Fees and
Expenses, less the Reserve Fund Credit.
15. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and
Defeasance Amount shall be deposited into the appropriate fund as established under the Indenture
and be used to redeem Outstanding Bonds or make debt service payments. The Future Facilities
Amount shall be deposited into the Construction Fund. The Administrative Fees and Expenses shall
be retained by the CFD.
The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such
event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund
established under the Indenture to be used with the next redemption from other Special Tax prepayments
of Outstanding Bonds or to make debt service payments.
As a result of the payment of the current Fiscal Year’s Special Tax levy as determined pursuant to
paragraph 9 above, the CFD Administrator shall remove the current Fiscal Year’s Special Tax levy for the
Assessor’s Parcel from the County tax roll. With respect to any Assessor’s Parcel for which the Maximum
Special Tax obligation is prepaid, the City Council shall cause a suitable notice to be recorded in compliance
with the Act, to indicate the prepayment of Maximum Special Tax obligation and the release of the Special
Tax lien for the Assessor’s Parcel, and the obligation to pay the Special Tax for such Assessor’s Parcel shall
cease.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of
Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property after the proposed
prepayment will be at least 1.1 times maximum annual debt service on the Bonds that will remain
outstanding after the prepayment plus the estimated annual Administrative Expenses.
Tenders of Bonds in prepayment of the Maximum Special Tax obligation may be accepted upon the terms
and conditions established by the City Council pursuant to the Act. However, the use of Bond tenders
shall only be allowed on a case‐by‐case basis as specifically approved by the City Council.
2. Prepayment in Part
The Maximum Special Tax obligation for an Assessor’s Parcel of Developed Property, Approved Property
or Undeveloped Property may be partially prepaid. For purposes of determining the partial prepayment
amount, the provisions of Section G.1 shall be modified as provided by the following formula:
PP = ((PE –A) x F) +A
These terms have the following meaning:
PP = Partial Prepayment Amount
PE = the Prepayment Amount calculated according to Section G.1
F = the percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the
Maximum Special Tax obligation
A = the Administrative Fees and Expenses determined pursuant to Section G.1
The owner of an Assessor’s Parcel who desires to partially prepay the Maximum Special Tax obligation for
the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the
City of Lake Elsinore
Community Facilities District No. 2016‐2 (Canyon Hills) Page 11
Maximum Special Tax obligation, (ii) the percentage of the Maximum Special Tax obligation such owner
wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any. Within
5 days of receipt of such notice, the CFD Administrator shall notify such property owner of the amount of
the non‐refundable deposit determined to cover the cost to be incurred by the CFD in calculating the
amount of a partial prepayment. Within 15 business days of receipt of such non‐refundable deposit, the
CFD Administrator shall notify such owner of the amount of the Partial Prepayment Amount for the
Assessor’s Parcel. A Partial Prepayment Amount must be made not less than 60 days prior to the
redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment
Amount.
With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is partially prepaid,
the CFD Administrator shall (i) distribute the Partial Prepayment Amount as provided in Paragraph 15 of
Section G.1, and (ii) indicate in the records of the CFD that there has been a Partial Prepayment Amount
for the Assessor’s Parcel and that a portion of the Special Tax obligation equal to the remaining percentage
(1.00 ‐ F) of Special Tax obligation will continue on the Assessor’s Parcel pursuant to Section E.
H. TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding the Special Tax shall be levied on all Assessor’s Parcels
subject to the Special Tax. The Special Tax shall cease not later than the 2057‐2058 Fiscal Year, however,
Special Tax will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that
all the required interest and principal payments on the CFD No. 2016‐2 Bonds have been paid; (ii) all
authorized facilities of CFD No. 2016‐2 have been acquired and all reimbursements to the developer have
been paid, (iii) no delinquent Special Tax remain uncollected and (iv) all other obligations of CFD No. 2016‐
2 have been satisfied.
I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem
property taxes, provided, however, that CFD No. 2016‐2 may collect Special Tax at a different time or in a
different manner if necessary to meet its financial obligations, and may covenant to foreclose and may
actually foreclose on delinquent Assessor’s Parcels as permitted by the Act.
J. APPEALS OF SPECIAL TAXES
Any taxpayer may file a written appeal of the Special Taxes on his/her Assessor’s Parcel(s) with the CFD
Administrator, provided that the appellant is current in his/her payments of Special Taxes. During
pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date
established when the levy was made. The appeal must specify the reasons why the appellant claims the
Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD
Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator
agrees with the appellant, the CFD Administrator shall grant a credit to eliminate or reduce future Special
Taxes on the appellant’s Assessor’s Parcel(s). No refunds of previously paid Special Taxes shall be made.
The CFD Administrator shall interpret this Rate and Method of Apportionment and make determinations
relative to the annual levy and administration of the Special Taxes and any taxpayer who appeals, as
herein specified.
Appendix B
Boundary Map
Appendix C
Resolution of Intention
CERTIFICATE OF CITY CLERK
RE ELECTION DATE
I, Susan M. Domen, MMC, City Clerk for the City of Lake Elsinore, hereby certify that in
connection with the formation of Community Facilities District No. 2016-2 of the City of Lake
Elsinore (Canyon Hills) (the “District”), I have reviewed the map of the District boundaries recorded
on November 4, 2016, in Book 80, Page No. 20 of the maps of assessment and community facilities
districts in the Officer of the Assessor-County Clerk-Recorder of the County of Riverside and a list
of the Assessor’s Parcel Numbers comprising the land within the District, as required by Government
Code Section 53326. On the basis of such information and information provided to me by the
Special Tax Consultant retained by the District as set forth in Exhibit A attached hereto, it has been
determined that the landowners of record at the close of the December 13, 2016 protest hearing for
the District, other than public agencies, are those landowners listed on Exhibit A who are entitled to
the number of votes set forth in Exhibit A. The unanimous consent of such landowners waiving all
applicable time limits and other requirements pertaining to the conduct of an election within the
District and consenting to the holding of the election on or after December 13, 2016 has been
received and, accordingly, in accordance with Government Code Section 53326(a), I hereby concur
in the holding of the election on December 13, 2016.
Dated: December 13, 2016
City Clerk of the City of Lake Elsinore
EXHIBIT A
LANDOWNERS OF RECORD AS OF DECEMBER 13, 2016
Property Owner:
Pardee Homes
Property Description:
Real property in the City of Lake Elsinore, County of Riverside, State of California, described as
follows:
All lots included in Tract Map No. 36117 in the County of Riverside, State of California as per Map
Recorded in Book 450, Page(s) 20 through 28, inclusive, of Maps, in the Office of the County
Recorder of Riverside County and all lots included in Tract Map No. 36118 in the County of
Riverside, State of California as per Map recorded in Book 450, Pages 10 through 19, inclusive, of
Maps, in the Office of the County Recorder of Riverside County.
APNs: 363-210-014-4; 363-210-015-5; 363-210-016-6; 363-210-034-2; 363-210-035-3