HomeMy WebLinkAboutItem No. 11 CFD No 2006-8 Running Deer EstatesText File
City of Lake Elsinore 130 South Main Street
Lake Elsinore, CA 92530
www.lake-elsinore.org
File Number: ID# 17-526
Agenda Date: 2/13/2018 Status: Consent AgendaVersion: 1
File Type: AgreementIn Control: City Council / Successor Agency
Agenda Number: 11)
Page 1 City of Lake Elsinore Printed on 2/8/2018
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:February 13, 2018
Subject:Community Facilities District (CFD) No. 2006-8 (Running Deer Estates),
Special Tax Amendment
Recommendation
adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF THE CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2006-8 (RUNNING DEER ESTATES), DECLARING
ITS INTENTION TO CONSIDER AN AMENDMENT TO THE RATE AND METHOD OF
APPORTIONMENT OF SPECIAL TAX, EXTEND THE TERM OF THE SPECIAL TAX FOR
FACILITIES AND TO INCLUDE ADDITIONAL SERVICES AUTHORIZED TO BE PROVIDED BY
THE DISTRICT
Background and Discussion
The City of Lake Elsinore (City) formed the City of Lake Elsinore CFD No. 2006-8 (Running Deer
Estates) (District) in 2006 pursuant to the Mello-Roos Community Facility Community Act of 1982.
The District consists of Tract No. 31957 and is located generally to the northeast of Mountain
Street and north of the Rice Canyon Elementary School. SAM-Running Deer, LLC, is the
landowner within the District (Developer). The development within the District is expected to
include approximately 96 single family homes at build-out.
While the District was formed in 2006, homebuilding has not yet commenced. Due to revisions
in the proposed product mix within the District, the Developer has requested that the District
undertake proceedings to amend the current Rate and Method of apportionment of special taxes
with the Amended and Restated Rate and Method of Apportionment of Special Taxes (Amended
RMA). If approved, the Amended RMA will reduce the special tax rates to be levied within the
District from those currently in effect. The current special tax rates range from $4,372.00 to
$5,608.00 and will be reduced to range from $2,034.00 to $2,709.00 per single family home.
In addition, the Developer would also like to enter into a Joint Community Facilities Agreement
(JCFA), in the form on file with the City Clerk, with the City and the Elsinore Valley Municipal
Water District in order to allow the District to finance certain water and/or sewer facilities benefiting
the property within the District. A Joint Community Facilities Agreement with the Lake Elsinore
CFD 2006-8 Running Deer
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Unified School District is expected to be presented for approval prior to the issuance of bonds for
the District.
Approval of the attached Resolution is the first step in the process to effectuate the changes
discussed above. The attached Resolution declares the District’s intention to consider the
proposed changes, calls a public hearing on the proposed changes and approves the form of the
JCFA.
Fiscal Impact
The Developer has made a deposit to pay for the costs of the change proceedings described
above. City staff expects to provide the City Council at the next meeting, the form of an acquisition
agreement with the Developer which will, among other provisions, provide that the Developer will
be reimbursed for such costs if and when bonds are issued for CFD No. 2006-8.
The District will annually levy special taxes on all of the taxable property within the District in
accordance with the Amended RMA in order to pay for the costs of facilities, debt service on
bonds, the services and administration of the District. Any bonds issued by the District are not
obligations of the City and will be secured solely by the Special Taxes levied in the District.
Exhibits
A - Resolution
B - Joint Community Facilities Agreement
C - Landowner Petition
D - Project Map
RESOLUTION NO. 2018-______
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2006-8 (RUNNING DEER ESTATES),
DECLARING ITS INTENTION TO CONSIDER AN AMENDMENT TO THE RATE AND
METHOD OF APPORTIONMENT OF SPECIAL TAX, TO EXTEND THE TERM OF THE
SPECIAL TAX FOR FACILITIES AND TO INCLUDE ADDITIONAL SERVICES
AUTHORIZED TO BE PROVIDED BY THE DISTRICT
Whereas, on October 10, 2006, the City Council (Council) of the City of Lake Elsinore (City)
adopted Resolution No. 2006-168 stating its intention to form City of Lake Elsinore Community
Facilities District No. 2006-8 (Running Deer Estates) (Community Facilities District No. 2006-8 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
(Act); and;
Whereas, on October 10, 2006, the Council also adopted Resolution No. 2006-169 stating its
intention to incur bonded indebtedness within the District in the amount not to exceed $7,000,000
to finance the facilities and improvements identified in Resolution No. 2006-168 (collectively, the
Improvements); and the incidental expenses to be incurred in financing the Improvements and
forming and administering the District (Incidental Expenses); and;
Whereas, pursuant to Resolution No. 2006-168, the Council also stated its intention to finance
parks, open space and storm drain maintenance services (Services) within the District through
the levy of a services special tax in accordance with the Rate and Method (as defined below);
and;
Whereas, a notice calling a public hearing on November 28, 2006, was published as required by
law relative to the intention of the City Council to establish Community Facilities District No. 2006-
8 and to incur bonded indebtedness within Community Facilities District No. 2006-8; and;
Whereas, on November 28, 2006, the Council conducted a noticed public hearing to determine
whether it should proceed with the establishment of Community Facilities District No. 2006-8,
issue bonds for the benefit of Community Facilities District No. 2006-8 to pay for the
Improvements and Incidental Expenses and authorize the rate and method of apportionment of
the special taxes in the form attached as Exhibit “A” to the Resolution of Formation (as defined
below) (Rate and Method) to be levied within Community Facilities District No. 2006-8 for the
purposes described in Resolution No. 2006-168; and;
Whereas, at the November 28, 2006, public hearing all persons desiring to be heard on all matters
pertaining to the establishment of Community Facilities District No. 2006-8, the levy of the special
taxes in accordance with the Rate and Method and the issuance of bonds within Community
Facilities District No. 2006-8 to pay for the cost of the proposed Improvements and Incidental
Expenses were heard and a full and fair hearing was held; and;
Whereas, after the public hearing, on November 28, 2006, the Council adopted Resolution Nos.
2006-195 (Resolution of Formation) and 2006-196 which formed the District and called a special
election on November 28, 2006, within the District on three propositions relating to the levying of
the special taxes, the incurring of bonded indebtedness and the establishment of an
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appropriations limit for the District, which were approved by more than two-thirds vote by the
qualified electors on November 28, 2006; and;
Whereas, pursuant to Resolution No. 2006-197, adopted on November 28, 2006, the Council,
acting as the legislative body of Community Facilities District No. 2006-8, declared the results of
the special election and directed the recording of a Notice of Special Tax Lien within Community
Facilities District No. 2006-8; and;
Whereas, the District has received a petition signed by SAM-Running Deer, LLC, an Oregon
limited liability company (Owner), which owns the land within Community Facilities District No.
2006-8, the boundaries of which are described herein in Attachment “A,” which petition meets the
requirements of Section 53332 of the Act, requesting that the District initiate proceedings to (i)
approve the new Rate and Method of apportionment for Community Facilities District No. 2006-
8, attached hereto as Attachment “B” (Amended and Restated Rate and Method); (ii) extend the
term of the Special Tax for Facilities (as defined in the Amended and Restated Rate and Method)
to Fiscal Year 2058-59 and (iii) include the services set forth in the definition of “Services” in the
Amended and Restated Rate and Method as services authorized to be provided by the District;
and;
Whereas, the District, the Owner and the Elsinore Valley Municipal Water District (Water District)
propose to enter into a Joint Community Facilities Agreement (JCFA) in the form on file with the
City Clerk relating to certain facilities proposed to be financed by the District and owned and
operated by the Water District.
NOW, THEREFORE, THE CITY COUNCIL, ACTING AS THE LEGISLATIVE BODY OF THE
DISTRICT, DOES HEREBY RESOLVE, ORDER AND DETERMINE 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. The Council, acting as the legislative body of the District, declares its intention to
conduct proceedings pursuant to the Actto consider (i) the approval of the Amended and Restated
Rate and Method; (ii) the extension of the term of the Special Tax for Facilities to Fiscal Year
2058-59 and (iii) the inclusion of the services set forth in the definition of “Services” in the
Amended and Restated Rate and Method as services authorized to be provided by the District.
Section 3. The Improvements proposed to be provided within the District are public facilities as
defined in the Act. The Improvements and Incidental Expenses authorized to be financed by the
District are described in the Resolution of Formation. The City and the Water District, with respect
to certain water and sewer facilities, are authorized by law to construct, acquire, own and operate
the Improvements for the benefit of the District.
The Services proposed to be provided within the District are public services as defined in the Act,
The Services authorized to be financed by the District are described in the Resolution of
Formation and the Amended and Restated Rate and Method.
Section 4. A public hearing (Hearing) on the levy of special taxes in the District in accordance
with the Amended and Restated Rate and Method, the extension of the term of the Special Tax
for Facilities to Fiscal Year 2058-59 and the addition of the services to be provided by the District
as set forth in the definition of “Services” in the Amended and Restated Rate and Method, shall
be held at 7:00 p.m., or as soon thereafter as practicable, on March 27, 2018, at the City Cultural
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Center, 183 North Main Street, Lake Elsinore, California. Should the City Council determine to
submit the proposed Amended and Restated Rate and Method to the qualified electors of the
District, a special election will be held to authorize the Amended and Restated Rate and Method
in accordance with the procedures contained in Government Code Section 53326. If such
election is held, the proposed voting procedure at the elections will be a landowner vote with each
landowner who is the owner of record of land within the District at the close of the Hearing, or the
authorized representative thereof, having one vote for each acre or portion thereof owned within
the District. Ballots for the special election may be distributed by mail or by personal service.
Section 5. At the time and place set forth above for the Hearing, any interested person, including
all persons owning lands or registered to vote within the District, may appear and be heard.
Section 6. The City Clerk is hereby directed to publish a notice (Notice) of the Hearing pursuant
to Section 6061 of the Government Code in a newspaper of general circulation published in the
area within Community Facilities District No. 2006-8. The City Clerk is further directed to mail a
copy of the Notice to each of the landowners within the boundaries of Community Facilities District
No. 2006-8 at least 15 days prior to the Hearing. The Notice shall contain the text or a summary
of this Resolution, the time and place of the Hearing, a statement that the testimony of all
interested persons or taxpayers will be heard, a description of the protest rights of the registered
voters and landowners in the District and a description of the proposed voting procedure for the
election required by the Act. Such publication shall be completed at least seven (7) days prior to
the date of the Hearing.
Section 7.The form of the JCFA is hereby approved. The Mayor, the City Manager, the
Assistant City Manager, or their written designees are hereby authorized and directed to execute
and deliver the JCFA in the form on file with the City Clerk with such changes, insertions and
omissions as may be approved by the officer or officers executing such agreement, said execution
being conclusive evidence of such approval.
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Section 8. This Resolution shall take effect immediately upon its adoption.
Passed and Adopted on this 13th day of February, 2018.
_____________________________
Natasha Johnson, 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 February 13, 2018, and that the same was adopted by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_____________________________
Susan M. Domen, MMC
City Clerk
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ATTACHMENT “A”
LEGAL DESCRIPTION OF DISTRICT
Real property in the City of Lake Elsinore, County of Riverside, State of California, described as
follows:
Assessor’s Parcel Nos:
394-120-008
394-120-013
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ATTACHMENT “B”
PROPOSED AMENDED AND RESTATED
RATE AND METHOD OF APPORTIONMENT OF
CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2006-8 (RUNNING DEER ESTATES)
The following sets forth the Rate and Method of Apportionment for the levy and collection of Special Tax
of the City of Lake Elsinore Community Facilities District No. 2006-8 (Running Deer) ("CFD No. 2006-8").
The Special Tax shall be levied on and collected each Fiscal Year, in an amount determined through the
application of the Rate and Method of Apportionment described below. All of the real property within
CFD No. 2006-8 unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to
the extent, and in the manner herein provided.
A. DEFINITIONS
"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 similar instrument. The
square footage of an Assessor’s Parcel is equal to the Acreage multiplied by 43,560.
"Act"means the Mello-Roos Community Facilities Act of 1982, being Chapter 2.5, Part 1, Division 2 of
Title 5 of the California Government Code.
“Administrative Expenses” means the actual or reasonably estimated costs directly related to the
formation, annexation, and administration of CFD No. 2006-8 including, but not limited to: the costs
of computing the Special Tax for Facilitiesand preparing the annual Special Tax for Facilitiescollection
schedules (whether by the City or designee thereof or both); the costs to the City, CFD No. 2006-8, or
any designee thereof associated with fulfilling the CFD No. 2006-8 disclosure requirements; the costs
associated with responding to public inquiries regarding the Special Tax for Facilities; the costs of the
City, CFD No. 2006-8or any designee thereof related to an appeal of the Special Tax for Facilities; and
the City's annual administration fees including payment of a proportional share of salaries and
benefits of any City employees and City overhead whose duties are related to the administration and
third party expenses. Administrative Expenses shall also include amounts estimated or advanced by
the City or CFD No. 2006-8 for any other administrative purposes of CFD No. 2006-8, including
attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of
delinquent Special Tax for Facilities.
"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 for
Facilities is being levied, and (ii) that have not been issued a building permit on or before May 1
st
preceding the Fiscal Year in which the Special Tax for Facilities is being levied.
"Assessor’s Parcel" means a lot or parcel shown on an Assessor’s Parcel Map with an assigned
Assessor’s Parcel Number valid at the time the Special Tax for Facilities is enrolled for the Fiscal Year
for which the Special Tax for Facilities is being levied.
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"Assessor’s Parcel Map"means an official map of the Assessor of the County designating parcels by
Assessor’s Parcel Number.
"Assessor’s Parcel Number"means that number assigned to an Assessor’s Parcel by the County for
purposes of identification.
"Assigned Special Tax for Facilities"means the Special Tax for Facilities of that name described in
Section D below.
"Backup Special Tax for Facilities"means the Special Tax for Facilities applicable to each Assessor’s
Parcel of Developed Property, as determined in accordance with Section E below.
"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 government agencies, or loans from
banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any
refunding thereof, to which Special Tax for Facilities within CFD No. 2006-8 have been pledged.
“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,reflected on the original construction
building permit issued for construction of a Residential Unit, including square footage of internal living
space subsequently added to a Residential Unit after issuance of a building permit for expansion or
renovation of such Residential Unit.
"Calendar Year"means the period commencing January 1 of any year and ending the following
December 31.
“CFD” or "CFD No. 2006-8”means Community Facilities District No. 2006-8 (Running Deer)
established by the City under the Act.
“CFD Administrator”means an official of the City, or designee thereof, responsible for (i) determining
the Special Tax for Facilities Requirement, (ii) determining the Special Tax for Services Requirement,
and (iii) providing for the levy and collection of the Special Taxes.
"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. 2006-8, or its designee.
"County" means the County of Riverside.
"Developed Property" means all Assessor’s Parcels of Taxable Property, not classified as Approved
Property, Undeveloped Property, Provisional Undeveloped Property that are not Exempt Property
pursuant to the provisions of Section J. below : (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 for Facilities or Special Tax
for Servicesis being levied, and (ii) a building permit for new construction has been issued on or before
May 1st preceding the Fiscal Year in which the Special Tax for Facilities or Special Tax For Services is
being levied.
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"Exempt Property"means all Assessor’s Parcels designated as being exempt from Special Tax for
Facilities and/or Special Tax for Services pursuant to Section J, below.
"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 1352 that creates individual
lots for which building permits may be issued without further subdivision.
"Fiscal Year" means the period commencing on July 1 of any year and ending the following June 30.
“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”or “LUC”meansany of the categories contained in Section B hereof to which an
Assessor’s Parcel is assigned consistent with the land use approvals that have been received or
proposed for the Assessor’s Parcel as of May 1 preceding the Fiscal Year in which the Special Tax for
Facilities is being levied.
"Maximum Special Tax for Facilities"means the Maximum Special Tax for Facilities, determined in
accordance with Section C, that can be levied by CFD No. 2006-8 in any Fiscal Year on any Assessor’s
Parcel.
“Maximum Special Tax for Services”means the Maximum Special Tax for Services, as determined in
accordance with Section M below that can be levied in any Fiscal Year on any Assessor's Parcel of
Developed Property within CFD No. 2006-8.
“Operating Fund” means a fund that shall be maintained for any Fiscal Year to pay for the actual costs
of maintenance related to the Services, and the applicable Administrative Expenses.
“Operating Fund Balance”means the amount of funds in the Operating Fund at the end of the
preceding Fiscal Year.
“Multi-Family Residential 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"means all Assessor's Parcels of Developed 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.
"Proportionately"means that the ratio of the actual Special Tax for Facilities levy to the applicable
Assigned Special Tax for Facilities is equal for all applicable Assessor’s Parcels. In case of Developed
Property subject to the apportionment of the Special Tax for Facilities under step four of Section F,
“Proportionately” in step four means that the quotient of (a) actual Special Tax for Facilities less the
Assigned Special Tax for Facilities divided by (b) the Backup Special Tax for Facilities less the Assigned
Special Tax for Facilities, is equal for all applicable Assessor’s Parcels.
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"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 J, but cannot be
classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property
below the required minimum Acreage set forth in Section J.
“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.
“Residential Property” means all Assessor’s Parcels of Developed Property upon which completed
Residential Units have been constructed or for which building permits have been issued for purposes
of constructing one or more Residential Units.
“Single Family Residential Property”means any Residential Property other than Multi-Family
Residential Property on an Assessor’s Parcel.
“Services” means services permitted under the Mello-Roos Community Facilities Act of 1982
including, without limitation, those services authorized to be funded by CFD No. 2006-8 as set forth
in Appendix A hereto.
"Special Tax for Facilities"means the Special Tax for Facilities to be levied in each Fiscal Year on each
Assessor's Parcel of Developed Property, Undeveloped Property and Provisionally Undeveloped
Property to fund the Special Tax for Facilities Requirement.
"Special Tax for Facilities Requirement"means that amount required in any Fiscal Year for CFD No.
2006-8 to: (i) pay debt service on all Outstanding Bonds due in the calendar year commencing in such
Fiscal Year; (ii) pay periodic costs on the CFD No. 2006-8 Bonds, including but not limited to, credit
enhancement and rebate payments on the CFD No. 2006-8 Bonds due in the calendar year
commencing in such Fiscal Year; (iii) pay a proportionate share of Administrative Expenses; (iv) pay
any amounts required to establish or replenish any reserve funds for all Outstanding Bonds; (v) pay
for reasonably anticipated Special Tax for Facilities delinquencies; (vi) pay directly for acquisition or
construction of CFD Public Facilitiesor the payment of debt serviceon Bonds anticipated to be issued,
to the extent that the inclusion of such amount does not increase the Special Tax for Facilities levy on
Approved Property or Undeveloped Property; less (vii) a credit for funds available to reduce the
annual Special Tax for Facilities levy, as determined by the CFD Administrator pursuant to the
Indenture.
“Special Tax for Services” means any of the Special Tax for Services authorized to be levied within
CFD No. 2006-8 pursuant to the Act to fund the Special Tax for Services Requirement.
“Special Tax for Services Requirement”means that amount to be collected in any Fiscal Year to pay
for certain costs as required to meet the needs of CFD No. 2006-8 in both the current Fiscal Year and
the next Fiscal Year. The costs to be covered shall be the direct costs for maintenance services
including but not limited to (i) maintenance and lighting of parks, parkways, streets, roads and open
space, (ii) maintenance and operation of water quality improvements, (iii) public street sweeping, (iv)
fund an operating reserve for the costs of such services as determined by the CFD Administrator, and
(v) Administrative Expenses. Under no circumstances shall the Special Tax for Services Requirement
include funds for Bonds.
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"Taxable Property"means all Assessor’s Parcels within the boundaries of CFD No. 2006-8, which are
not Exempt Property.
“Taxable Unit”means a Residential Unit or an Acre.
"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 or Provisional Undeveloped Property.
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, beginning with Fiscal Year 2018-19, each Assessor’s Parcel within CFD No. 2006-8
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.
C. MAXIMUM SPECIAL TAX FOR FACILITIES
1.Developed Property
The Maximum Special Tax for Facilities for each Assessor’s Parcel of Developed Property in any
Fiscal Year shall be the greater of (i) the Assigned Special Tax for Facilitiesor (ii) the Backup Special
Tax for Facilities.
2.Approved Property, Undeveloped Property and Provisional Undeveloped Property
The Maximum Special Tax for Facilitiesfor each Assessor’s Parcel classified as Approved Property,
Undeveloped Property, or Provisional Undeveloped Property in any Fiscal Year shall be the
applicable Assigned Special Tax for Facilities.
D. ASSIGNED SPECIAL TAX FOR FACILITIES
1.Developed Property
Each Fiscal Year, each Assessor’s Parcel of Single Family Residential Property, Multi-Family
Property or Non-Residential Property shall be subject to an Assigned Special Tax for Facilities. The
Assigned Special Tax for Facilities applicable to an Assessor's Parcel of Developed Property for
Fiscal Year 2018-19 shall be determined pursuant to Table 1 below.
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TABLE 1
ASSIGNED SPECIAL TAX FOR FACILITIES RATES
FOR DEVELOPED PROPERTY
FISCAL YEAR 2018-19
2.Approved Property, Undeveloped Property and Provisional Undeveloped Property
Each Fiscal Year, each Assessor’s Parcel of Approved Property, Undeveloped Property and
Provisional Undeveloped Property shall be subject to an Assigned Special Tax for Facilities. The
Assigned Special Tax for Facilities rate for an Assessor’s Parcel classified as Approved Property,
Undeveloped Property and Provisional Undeveloped Property for Fiscal Year 2018-19 shall be
$13,765 per Acre.
3.Increase in the Assigned Special Tax for Facilities
On each July 1, commencing July 1, 2019, the Assigned Special Tax for Facilities rate for Developed
Property, Approved Property, Undeveloped Property and Provisional Undeveloped Property shall
be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
E. BACKUP SPECIAL TAX FOR FACILITIES
At the time a Final Map is recorded, the Backup Special Tax for Facilities for all Assessor’s Parcels of
Developed Property classified or reasonably expected to be classified as a Single Family Property within
such Final Map area shall be determined by (i) multiplying (a) the Maximum Special Tax for Facilities rate
for Undeveloped Property by (b) the total Acreage of Taxable Property in such Final Map area, excluding
Acreage classified as Provisional Undeveloped Property, Acreage classified or reasonably expected to be
classified as Multi-Family Residential Property, Acreage classified or reasonably expected to be classified
as Non-Residential Property, and any Acreage reasonably expected to be classified as Exempt Property in
such Final Map area, and (ii) dividing the results in (i) by the total number of Residential Units reasonably
expected to be constructed within such Final Map area. The resulting quotient shall be the Backup Special
Tax for Facilities for each Assessor’s Parcel of Single Family Residential Property within such Final Map
area.
The Backup Special Tax for Facilities shall not apply to Multi-Family Residential Property or Non-
Residential Property.
Land Use
Category Description Building Square Footage
Assigned Special Tax
for Facilities
1 Single Family Residential Property Less than or equal to 2,000 sq. ft.$2,034 per RU
2 Single Family Residential Property 2,001 –2,200 sq. ft.$2,130 per RU
3 Single Family Residential Property 2,201 –2,400 sq. ft. $2,227 per RU
4 Single Family Residential Property 2,401 –2,600 sq. ft. $2,320 per RU
5 Single Family Residential Property 2,601 –2,800 sq. ft. $2,416 per RU
6 Single Family Residential Property 2,801 –3,000 sq. ft. $2,513 per RU
7 Single Family Residential Property 3,001 –3,200 sq. ft. $2,609 per RU
8 Single Family Residential Property More than or equal to 3,201 sq. ft.$2,709 per RU
5 Multi-Family Residential Property N/A $13,765 per Acre
6 Non-Residential Property N/A $13,765 per Acre
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Notwithstanding the foregoing, if Assessor’s Parcels of Developed Property which are classified or to be
classified as Single Family Residential Property are subsequently changed or modified by recordation of a
lot line adjustment or similar instrument, then the Backup Special Tax for Facilities for the area that has
been changed or modified shall be recalculated, based on the methodology above, to equal the amount
of Backup Special Tax for Facilities that would have been generated if such change did not take place.
On each July 1, commencing July 1, 2019, the Backup Special Tax for Facilities rate shall be increased by
two percent (2.00%) of the amount in effect in the prior Fiscal Year.
F. METHOD OF APPORTIONMENT OF THE SPECIAL TAX FOR FACILITIES
1. Special Tax for Facilities
Commencing with Fiscal Year 2018-19 and for each following Fiscal Year, the City Council shall
determine the Special Tax for Facilities Requirement and shall levy the Special Tax for Facilities on all
Assessor’s Parcels of Taxable Property until the aggregate amount of Special Tax for Facilities equals
the Special Tax for Facilities Requirement. The Special Tax for Facilities shall be levied for each Fiscal
Year as follows:
First:The Special Tax for Facilities shall be levied Proportionately on all Assessor’s Parcels of
Developed Property up to 100% of the applicable Assigned Special Tax for Facilities to satisfy the
Special Tax for Facilities Requirement;
Second:If additional moneys are needed to satisfy the Special Tax for Facilities Requirement after
the first step has been completed, the Special Tax for Facilities shall be levied Proportionately on each
Assessor’s Parcel of Approved Property at up to 100% of the Maximum Special Tax for Facilities for
Approved Property;
Third:If additional monies are needed to satisfy the Special Tax for Facilities Requirement after
the first two steps have been completed, the Special Tax for Facilities shall be levied Proportionately
on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax for
Facilities for Undeveloped Property.
Fourth:If additional moneys are needed to satisfy the Special Tax for Facilities Requirement after
the first three steps have been completed, the Special Tax for Facilities shall be levied on each
Assessor’s Parcel of Developed Property whose Maximum Special Tax for Facilities is the Backup
Special Tax for Facilities and such levy shall be increased Proportionately from the Assigned Special
Tax for Facilities up to 100% of the Backup Special Tax for Facilities as needed to satisfy the Special
Tax for Facilities Requirement;
Fifth:If additional monies are needed to satisfy the Special Tax for Facilities Requirement after
the first four steps have been completed, the Special Tax for Facilities shall be levied Proportionately
on all Assessor’s Parcels of Provisional Undeveloped Property up to 100% of the Maximum Special Tax
for Facilities for Provisional Undeveloped Property.
Notwithstanding the above, under no circumstances will the Special Tax for Facilities 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 for Facilities applicable to any other Assessor’s Parcel be increased by more than ten
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percent (10%) above the amount that would have been levied in that Fiscal Year had there never been
any such delinquency or default.
G. PREPAYMENT OF SPECIAL TAX FOR FACILITIES
The following additional definitions apply to this Section G:
“CFD Public Facilities”means $3,920,000 expressed in 2018 dollars, which shall increase by the
Construction Inflation Index on July 1, 2019, 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, 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 for Facilities levied under this Amended and Restated Rate and
Method of Apportionment.
“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. 2006-8.
“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 for
Facilities 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 for Facilities.
The Special Tax for Facilities obligation of an Assessor's Parcel of Developed Property, or an Assessor’s
Parcel of Approved Property or Undeveloped Property for which a building permit has been issued or is
expected to be issued, or an Assessor’s Parcel of Provisional Undeveloped Property may be prepaid in full,
provided that there are no delinquent Special Tax for Facilities, penalties, or interest charges outstanding
with respect to such Assessor’s Parcel at the time the Special Tax for Facilitiesobligation would be prepaid.
The Prepayment Amount for an Assessor’s Parcel eligible for prepayment shall be determined as
described below.
An owner of an Assessor’s Parcel intending to prepay the Special Tax for Facilitiesobligation shall provide
the CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such notice,
the CFD Administrator shall notify such owner of the Prepayment Amount of such Assessor’s Parcel. The
CFD Administrator may charge a reasonable fee for providing this service. Prepayment must be made not
less than 45 days prior to the next occurring date that notice of redemption of Bonds from the proceeds
of such prepayment may be given by the Trustee pursuant to the Indenture.
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The Prepayment Amount for each applicable Assessor's Parcel shall be calculated according to the
following formula (capitalized terms defined below):
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Cost
plus Administrative Fee
less Reserve Fund Credit
less Capitalized Interest Credit
equals Prepayment Amount
As of the date of prepayment, the Prepayment Amount shall be calculated as follows:
1.For an Assessor’s Parcel of Developed Property, compute the Assigned Special Tax for Facilities
and Backup Special Tax for Facilities, if any, applicable to the Assessor’s Parcel. For an Assessor’s Parcel
of Approved Property or Undeveloped Property, compute the Assigned Special Tax for Facilities and the
Backup Special Tax for Facilities as though it was already designated as Developed Property based upon
the building permit issued or expected to be issued for that Assessor’s Parcel. For an Assessor’s Parcel of
Provisional Undeveloped Property compute the Assigned Special Tax for Facilities for that Assessor’s
Parcel.
2.For each Assessor’s Parcel of Developed Property, Approved Property, Undeveloped Property or
Provisional Undeveloped Property to be prepaid, (a) divide the Assigned Special Tax for Facilities
computed pursuant to paragraph 1 for such Assessor's Parcel by the sum of the estimated Assigned Special
Tax for Facilities applicable to all Assessor’s Parcels of Taxable Property at buildout, as reasonably
determined by the City, and (b) divide the Backup Special Tax for Facilities computed pursuant to
paragraph 1 for such Assessor’s Parcel by the sum of the estimated Backup Special Tax for Facilities
applicable to all Assessor’s Parcels of Taxable Property at buildout, as reasonably determined by the CFD
Administrator.
3. Multiply the larger quotient computed pursuant to paragraph 2(a) or 2(b) by the Outstanding
Bonds. The product shall be the “Bond Redemption Amount”.
4. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the
Outstanding Bonds to be redeemed with the proceeds of the Bond Redemption Amount. This product is
the "Redemption Premium."
5.Compute the Future Facilities Cost.
6.Multiply the larger quotient computed pursuant to paragraph 2(a) or 2(b) by the amount
determined pursuant to paragraph 5 to determine the Future Facilities Cost to be prepaid (the “Future
Facilities Amount”).
7.Compute the amount needed to pay interest on the Bond Redemption Amount to be redeemed
with the proceeds of the Prepayment Amount until the earliest redemption date for the Outstanding
Bonds.
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8.Determine the actual Special Tax for Facilities levied on the Assessor’s Parcel in the current Fiscal
Year which has not yet been paid.
9.Estimate the amount of interest earnings to be derived from the reinvestment of the Bond
Redemption Amount plus the Redemption Premium until the earliest redemption date for the
Outstanding Bonds.
10.Add the amounts computed pursuant to paragraph 7 and 8 and subtract the amount computed
pursuant to paragraph 9. This difference is the "Defeasance Cost."
11.Estimate the administrative fees and expenses associated with the prepayment, including the
costs of computation of the Prepayment Amount, the costs of redeeming Bonds, and the costs of
recording any notices to evidence the prepayment and the redemption. This amount is the
"Administrative Fee."
12.Calculate the "Reserve Fund Credit" as the lesser of: (a) the expected reduction in the applicable
reserve requirements, if any, associated with the redemption of Outstanding Bonds as a result of the
prepayment, or (b) the amount derived by subtracting the new reserve requirements in effect after the
redemption of Outstanding Bonds as a result of the prepayment from the balance in the applicable reserve
funds on the prepayment date. Notwithstanding the foregoing, if the reserve fund requirement is satisfied
by a surety bond or other instrument at the time of the prepayment, then no Reserve Fund Credit shall
be given. Notwithstanding the foregoing, the Reserve Fund Credit shall in no event be less than 0.
13.If any capitalized interest for the Outstanding Bonds will not have been expended as of the date
immediately following the first interest and/or principal payment following the current Fiscal Year, a
capitalized interest credit shall be calculated by multiplying the larger quotient computed pursuant to
paragraph 2(a) or 2(b) by the expected balance in the capitalized interest fund or account under the
Indenture after such first interest and/or principal payment. This amount is the “Capitalized Interest
Credit.”
14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption
Premium, the Future Facilities Amount, the Defeasance Cost, and the Administrative Fee, less the Reserve
Fund Credit and the Capitalized Interest Credit.
15. From the Prepayment Amount, the amounts computed pursuant to paragraphs 3, 4, 10, 12, and
13 shall be deposited into the appropriate fund as established under the Indenture and used to retire
Outstanding Bonds or make debt service payments. The amount computed pursuant to paragraph 6 shall
be deposited into the Construction Fund. The amount computed pursuant to paragraph 11 shall be
retained by CFD 2006-8.
The Special Tax for Facilities prepayment amount may be insufficient to redeem a full $5,000 increment
of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the
appropriate fund established under the Indenture to be used with the next prepayment of Bonds or to
make debt service payments.
With respect to a Special Tax for Facilities obligation that is prepaid pursuant to this Section G, the City
Council shall indicate in the records of CFD 2006-8 that there has been a prepayment of the Special Tax
for Facilities obligation and shall cause a suitable notice to be recorded in compliance with the Act within
thirty (30) days of receipt of such prepayment to indicate the prepayment of the Special Tax for Facilities
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obligation and the release of the Special Tax for Facilitieslien on such Assessor’s Parcel and the obligation
of such Assessor’s Parcel to pay such Special Tax for Facilities shall cease.
Notwithstanding the foregoing, no prepayment will be allowed unless the amount of Special Tax for
Facilities that may be levied on Taxable Property, net of Administrative Expenses, shall be at least 1.1
times the regularly scheduled annual interest and principal payments on all currently Outstanding Bonds
in each future Fiscal Year.
H. PARTIAL PREPAYMENT OF SPECIAL TAX FOR FACILITIES
The Special Tax for Facilities obligation of an Assessor's Parcel of Developed Property, or an Assessor’s
Parcel of Approved Property or Undeveloped Property for which a building permit has been issued or is
expected to be issued, or and Assessor’s Parcel of Provisional Undeveloped Property, as calculated in this
Section H below, may be partially prepaid, provided thatthere are no delinquent Special Tax for Facilities,
penalties, or interest charges outstanding with respect to such Assessor’s Parcel at the time the Special
Tax for Facilities obligation would be prepaid.
The Partial Prepayment Amount shall be calculated according to the following formula:
PP = (PG – A) x F +A
The terms above have the following meanings:
PP =the Partial Prepayment Amount.
PG =the Prepayment Amount calculated according to Section G.
F =the percent by which the owner of the Assessor’s Parcel is partially prepaying the Special Tax for
Facilities obligation.
A = the Administration Fee calculated according to Section G.
The owner of any Assessor’s Parcel who desires such prepayment shall notify the CFD Administrator of
such owner’s intent to partially prepay the Special Tax for Facilities and the percentage by which the
Special Tax for Facilitiesshall be prepaid. The CFD Administrator shall provide the owner with a statement
of the amount required for the partial prepayment of the Special Tax for Facilities for an Assessor’s Parcel
within 30 days of the request and may charge a reasonable fee for providing this service. With respect to
any Assessor’s Parcel that is partially prepaid, the City Council shall (i) distribute the funds remitted to it
according to Section G, and (ii) shall indicate in the records of CFD No. 2006-8that there has been a partial
prepayment of the Special Tax for Facilities obligation and shall cause a suitable notice to be recorded in
compliance with the Act within thirty (30) days of receipt of such partial prepayment of the Special Tax
for Facilities obligation to indicate the partial prepayment of the Special Tax for Facilities obligation and
the partial release of the Special Tax for Facilitieslien on such Assessor’s Parcel, and the obligation of such
Assessor’s Parcel to pay such prepaid portion of the Special Tax for Facilities shall cease.
Notwithstanding the foregoing, no partial prepayment will be allowed unless the amount of Special Tax
for Facilities that may be levied on Taxable Property after such partial prepayment, net of Administrative
Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments on all
currently Outstanding Bonds in each future Fiscal Year.
I.TERMINATION OF SPECIAL TAX FOR FACILITIES
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The Special Tax for Facilities shall cease not later than the 2058-2059 Fiscal Year, however, the Special Tax
for Facilities will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that
all required interest and principal payments on Bonds for which the Special Tax for Facilities has been
pledged have been paid; (ii) all authorized facilities for CFD No. 2006-8 have been acquired, (iii) no
delinquent Special Tax for Facilitiesremain uncollected and (iv) all other obligations of CFD No. 2006-8have
been satisfied.
J.EXEMPTIONS
The City shall classify as Exempt Property, in 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 toother 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 16.19 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 16.19 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 16.19 Acres will be classified as Provisional Undeveloped
Property, and will be subject to Special Tax for Facilities pursuant to step five in Section F.
K. MANNER OF COLLECTION OF SPECIAL TAX FOR FACILITIES
The Special Tax for Facilities shall be collected in the same manner and at the same time as ordinary ad
valorem property taxes, provided, however, that CFD No. 2006-8may collect Special Tax for Facilities 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.
L. APPEALS RELATING TO SPECIAL TAX FOR FACILITIES
Any property owner claiming that the amount or application of the Special Tax for Facilities is not correct
may file a written notice of appeal with the CFD Administrator not later than twelve months after having
paid the first installment of the Special Tax for Facilities that is disputed. The CFD Administrator shall
promptly review the appeal, and if necessary, meet with the property owner, consider written and oral
evidence regarding the amount of the Special Tax for Facilities, and rule on the appeal. If the CFD
Administrator’s decision requires that the Special Tax for Facilities for an Assessor’s Parcel be modified or
changed in favor of the property owner, a cash refund shall not be made (except for the last year of levy),
but an adjustment shall be made to the Special Tax for Facilities on that Assessor’s Parcel in the
subsequent Fiscal Year(s).
The City Council may interpret this Rate and Method of Apportionment for purposes of clarifying any
ambiguity and make determinations relative to the annual administration and levy of the Special Tax for
Facilities and any landowner or resident’s appeals. Any decision of the City Council shall be final and
binding as to all persons.
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M. SPECIAL TAX FOR SERVICES
Commencing with Fiscal Year 2018-19 and for each following Fiscal Year, the City Council shall determine
the Special Tax for Services Requirement and shall levy the Special Tax for Serviceson all Assessor’s Parcels
of Developed Property until the aggregate amount of Special Tax for Services equals the Special Tax for
ServicesRequirement. The Special Tax for Servicesshall be levied Proportionately on all Assessor’s Parcels
of Developed Property up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax for
Services Requirement;
Developed Property
a. Maximum Special Tax for Services
The Maximum Special Tax for Services for each Assessor’s Parcel of DevelopedProperty for Fiscal Year
2018-19 is identified in Table 2 below:
TABLE 2
MAXIMUM SPECIAL TAX FOR SERVICES FOR DEVELOPED PROPERTY
Land Use Category
Taxable
Unit
Maximum Special Tax Per
Taxable Unit
1. Single Family Residential Property RU $996
2. Multi-Family Residential Property RU $498
3. Non-Residential Property Acre $5,906
On each July 1, commencing on July 1, 2019 the Maximum Special Tax for Services for Developed
Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los
Angeles - Riverside -Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year,
or ii) by two percent (2.0%), whichever is greater.
N. DURATION OF SPECIAL TAX FOR SERVICES
The Special Tax for Services shall be levied in perpetuity to fund the Special Tax for Services Requirement,
unless no longer required as determined at the sole discretion of the City Council.
O. MANNER OF COLLECTION
The Special Tax for Services shall be collected in the same manner and at the same time as ordinary ad
valorem property taxes, provided, however, that CFD No. 2006-8 may collect the Special Tax for Services
at a different time or in a different manner if necessary to meet its funding requirements.
P. APPEALS RELATING TO SPECIAL TAX FOR SERVICES
Any property owner claiming that the amount or application of the Special Tax for Services is not correct
may file a written notice of appeal with the CFD Administrator not later than twelve months after having
paid the first installment of the Special Tax for Services that is disputed. The CFD Administrator shall
promptly review the appeal, and if necessary, meet with the property owner, consider written and oral
evidence regarding the amount of the Special Tax for Services, and rule on the appeal. If the CFD
Administrator’s decision requires that the Special Tax for Services for an Assessor’s Parcel be modified or
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changed in favor of the property owner, a cash refund shall not be made (except for the last year of levy),
but an adjustment shall be made to the Special Tax for Serviceson that Assessor’s Parcel in the subsequent
Fiscal Year(s).
The City Council may interpret this Amended and Restated Rate and Method of Apportionment for
purposes of clarifying any ambiguity and make determinations relative to the annual administration of
the Special Tax for Servicesand any landowner or residents appeals. Any decision of the City Council shall
be final and binding as to all persons.
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APPENDIX A
CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2006-8 (RUNNING DEER)
DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the Special Tax for Services of CFD No. 2006-8, as
provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning,
repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right-
of-ways, public landscaping, public open spaces and other similar landscaped areas officially dedicated for
public use. These services including the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which
maintenanceand lighting services may include, without limitation, furnishing of electrical power to street
lights; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance
(including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks,
parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of
public signage; graffiti removal from and maintenance and repair of public structures situated on parks,
parkways, streets, roads and open space; maintenance and repair of playground or recreation program
equipment or facilities situated on any park; and
(b)maintenance and operation of water quality improvements which include storm drainage
and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration
basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include
but is not limited to the repair, removal or replacement of all or part of any of the water quality
improvements, fossil fuel filters within the public right-of-way including the removal of petroleum
hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and
outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance,
servicing; or both of the water quality basin improvements within flood control channel improvements;
and
(c)public street sweeping, on the segments of the arterials within the boundaries of CFD No.
2006-8; as well as local roads within residential subdivisions located within CFD No. 2006-8; and any
portions adjacent to the properties within CFD No. 2006-8; and
In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may
be expended to pay “Administrative Expenses,” as said term is defined in the First Amended and Restated
Rate and Method of Apportionment.
JOINT COMMUNITY FACILITIES AGREEMENT
among
CITY OF LAKE ELSINORE
and
ELSINORE VALLEY MUNICIPAL WATER DISTRICT
and
SAM-RUNNING DEER, LLC
an Oregon Limited Liability Company
relating to
CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2006-8
(RUNNING DEER ESTATES)
JOINT COMMUNITY FACILITIES AGREEMENT
THIS JOINT COMMUNITY FACILITIES AGREEMENT (the “Agreement”) is entered into
effective as of the ____ day of _______, 2017, by and among the CITY OF LAKE ELSINORE, a
political subdivision of the State of California (the “City”), the ELSINORE VALLEY MUNICIPAL
WATER DISTRICT, a municipal corporation (the “Water District”), and SAM-RUNNING DEER,
LLC, an Oregon limited liability company (the “Company”), and relates to City of Lake Elsinore
Community Facilities District No. 2006-8 (Running Deer States) (the “District”) for the purpose of
financing certain facilities to be owned and operated by the Water District, consisting of various
water and sewer improvements described in Exhibit B hereto (the “Water District Facilities”).
R E C I T A L S:
A.The Company is the developer of the land described in Exhibit A hereto (the
“Property”) which is located in the City of Lake Elsinore, County of Riverside, and consists of all
the property located within the District.
B.The Company as the developer of the Property intends to obtain, or has obtained,
the necessary development approvals to construct approximately 96 residential units on the
Property and to provide the required infrastructure for such units and improvements. The required
infrastructure includes the Water District Facilities.
C.The City Council of the City (the “City Council”) has formed the District pursuant to
the provisions of the Mello-Roos Community Facilities Act of 1982, Chapter 2.5 (commencing with
Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code (the “Act”) and
has primary responsibility for administration of the District.
D.The provision of the Water District Facilities is necessitated by the development of
the Property and the parties hereto find and determine that the residents residing within the
boundaries of the Water District, the City and the District will be benefited by the construction
and/or acquisition of the Water District Facilities and that this Agreement is beneficial to the
interests of such residents.
E.The parties hereto intend to have the District assist in financing the construction
and/or acquisition of the Water District Facilities by disbursing proceeds of bonds issued by the
District.
F.The Water District is authorized by Section 53313.5 of the Act to assist in the
financing of the acquisition and/or construction of the Water District Facilities. This Agreement
constitutes a joint community facilities agreement, within the meaning of Section 53316.2 of the
Act, by and among the Water District, the Company and the City, pursuant to which the District
will be authorized to finance the construction and/or acquisition of the Water District Facilities. As
authorized by Section 53316.6 of the Act, responsibility for constructing, providing for and
operating the Water District Facilities is delegated to the Water District to the extent set forth
herein.
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I.The parties hereto intend to have the District assist in financing the Water District
Facilities by transferring to the Water District a portion of the bond proceeds of the District, in
accordance with the terms of this Agreement and pursuant to the Act.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual promises and covenants set forth
herein, the parties hereto agree as follows:
1.Recitals. Each of the above recitals is incorporated herein and is true and correct.
2.Sale of Bonds and Use of Proceeds. The purpose of this Agreement is to provide
a mechanism by which the Company may request the District to issue bonds to provide funds to
finance the Water District Facilities. In the event that bond proceeds are not available to finance
the Water District Facilities, then the Company shall make alternate arrangements with the Water
District to finance the Water District Facilities.
The City Council of the City acting as the legislative body of the District may, in its
sole discretion, finance the design, construction and acquisition of the Water District Facilities by
issuing bonds (the “Bonds”). To the extent that the District determines, in its sole discretion, that
Bond proceeds are available to finance the Water District Facilities, it shall reserve an amount
(the “Water District Facilities Amount”) for such purpose.
The Company and the Water District acknowledge that the timing of the
disbursement of the Water District Facilities Amount to the Water District shall be in all respects
subject to the sole discretion and approval of the City. In no event will an act, or an omission or
failure to act, by the City or the District with respect to the disbursement or no disbursement of
the Water District Facilities Amount subject the District or the City to pecuniary liability hereunder.
The Bonds shall be issued only if, in its sole discretion, the City Council determines
that all requirements of state and federal law and all City policies have been satisfied or have
been waived by the City. In no event shall the Company or the Water District have a right to
compel the issuance of the Bonds or the disbursement of Bond proceeds to fund the Water District
Facilities Amount.
3.Disbursements.
(a)Bond proceeds of the District designated for the Water District Facilities
shall be held by the District in a special fund (the “Water District Facilities Account of the
Acquisition and Construction Fund”) which shall be invested by the City and earn and accumulate
its own interest. In the event that the District has deposited Bond proceeds to the Water District
Facilities Account of the Acquisition and Construction Fund to fund all or a portion of the Water
District Facilities Amount, the City shall notify the Water District and the Company, in writing, as
to the amount of Bond proceeds so deposited. All interest earnings on amounts in the District’s
Water District Facilities Account of the Acquisition and Construction Fund shall remain in the
Water District Facilities Account and will be available for disbursement for the Water District
Facilities as described below.
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(b)The City shall make disbursements from the Water District Facilities
Account of the Acquisition and Construction Fund in accordance with the terms of this Agreement
and neither the City nor the District shall be responsible to the Water District for costs incurred by
the Water District as a result of withheld or delayed payments.
(c)The Water District agrees that it will request a disbursement of Bond
proceeds only for costs related to the Water District Facilities that are eligible for financing under
the Act. The Water District agrees that prior to requesting payment from the District it shall review
and approve all costs included in its request and will have already paid such costs of Water District
Facilities from its own funds or will disburse such amounts to pay the costs of the Water District
Facilities within five banking days of receipt of funds from the District. In the event that the Water
District does not disburse any Bond proceeds received for disbursement to third parties within
five banking days of receipt, it will trace and remit to the District from which such Bond proceeds
were received all earnings, if any, earned by the Water District in excess of the yield on the Bonds,
from the date of receipt of such Bond proceeds by the Water District to the date of expenditure
by the Water District of such Bond proceeds for capital costs of the Water District Facilities. Such
remittance, if any, shall occur on the earlier of the date of expenditure of such Bond proceeds or
each anniversary date of the transfer of such Bond proceeds from the District to the Water District.
The Water District agrees that in processing the above disbursements it will comply with all legal
requirements for the expenditure of Bond proceeds under the Act and the Internal Revenue Code
of 1986 and any amendments thereto. As a condition to receiving any proceeds of the Bonds,
the Water District agrees that it shall provide to the District, a certificate confirming the
representations contained in Section 3 hereof and such other matters as the District may
reasonably request upon which the District and its bond counsel may rely in connection with the
issuance of such Bonds and their conclusion that interest on such Bonds is not included in gross
income for federal income tax purposes.
(d)The Water District agrees to maintain adequate internal controls over its
payment function and to maintain accounting records in accordance with generally accepted
accounting procedures. The Water District will, upon request, provide to the District and the City
its annual financial report certified by an independent certified public accountant and any other
documents deemed necessary by the District and the City for purposes of calculating the District’s
arbitrage rebate obligations. The District and the City shall have the right to conduct their own
audit of the Water District’s records related to the expenditure of the Water District Facilities
Amount at reasonable times during normal business hours.
(e)From time to time, upon written request from Company in the form attached
hereto as Exhibit D (“Payment Request”) and the Water District’s approval/acknowledgment of
such Payment Request, the Water District shall submit a request for disbursement along with
adequate supporting documentation to the District which shall be in the form attached hereto as
Exhibit C, which shall be signed by the Director of Public Works, his or her or written designee,
and which shall be for the exact amount to be reimbursed to the Water District, which costs shall
in no event exceed the amount remaining on deposit in the Water District Facilities Account of the
Acquisition and Construction Fund. Upon receipt of an approved disbursement request
completed in accordance with the terms of this Agreement, the City shall wire transfer such portion
of requested funds as are then available for release pursuant to the documents pursuant to which
the Bonds are issued to the Water District’s bank account, as directed by the Water District. In
each case, the Water District shall remit such funds in accordance with the approved Payment
Request, as follows (i) to pay the Company for Water District Facilities (i.e., water and sewer
capacity and connection fees) previously paid for residential units or lots within the District and
5
not yet reimbursed with special taxes or Bond proceeds of the District, and/or (ii) to pay the Water
District for Water District Facilities relating to residential units or lots within the District which have
not yet been paid (in which case Company or its written designee shall receive credit for the Water
District Facilities costs covered with respect to such residential units or lots identified in the
approved Payment Request).
(f)If five (5) years following the issuance of the Bonds, 85% or more of the
amount deposited into the Water District Facilities Account of the Acquisition and Construction
Fund from proceeds of such Bonds have not been expended for federal tax law purposes, the
District may in its sole discretion transfer such funds to the City Facilities Account of the
Acquisition and Construction Fund to be used to pay for the costs of eligible public facilities or to
the redemption fund to redeem Bonds; provided, however that such funds may be retained in the
Water District Facilities Account of the Acquisition and Construction Fund beyond such five year
period upon the written request of the Water District, and delivery by the Water District of an
opinion of bond counsel that such extension will not affect the exclusion from gross income of
interest on such Bonds issued on a tax-exempt basis.
4.Construction and Ownership of Facilities. The Water District will complete the
design of the Water District Facilities and the plans and specifications for construction of the Water
District Facilities and will be responsible for constructing and inspecting the Water District
Facilities. The Water District covenants and agrees that with respect to the Water District
Facilities it will comply with all statutory provisions applicable to the design and construction of
public works projects. The Water District Facilities shall be and remain the property of the Water
District.
5.Indemnification. The City shall assume the defense of, indemnify and save
harmless, the Water District, its officers, employees and agents, and each and every one of them,
from and against all actions, damages, claims, losses or expenses of every type and description
to which they may be subjected or put, by reason of, or resulting from, any act or omission of the
City with respect to this Agreement and the issuance of the Bonds. No provision of this Agreement
shall in any way limit the extent of the City’s responsibility for payment of damages resulting from
the operations of the City and its contractors; provided, however, that the Cityshall not be required
to indemnify any person or entity as to damages resulting from negligence or willful misconduct
of such person or entity or their agents or employees. The Water District shall assume the
defense of, indemnify and save harmless, the City, its officers, employees and agents, and each
and every one of them, from and against all actions, damages, claims, losses or expenses of
every type and description to which they may be subjected or put, by reason of, or resulting from,
any act or omission of the Water District with respect to this Agreement, and the design,
engineering and construction of the Water District Facilities. No provision of this Agreement shall
in any way limit the extent of the Water District’s responsibility for payment of damages resulting
from the operations of the Water District and its contractors; provided, however, that the Water
District shall not be required to indemnify any person or entity as to damages resulting from
negligence or willful misconduct of such person or entity or their agents or employees.
6.Allocation of Special Taxes. The City Council, as the legislative body of the District,
shall annually levy a special tax as provided for in the formation proceedings of the District. The
entire amount of any special tax levied by the District to repay Bonds, or to fund other obligations,
shall be allocated at the discretion of the District.
6
7.Amendment. This Agreement may be amended at any time but only in writing
signed by each party hereto.
8.Entire Agreement. This Agreement contains the entire agreement between the
parties with respect to the matters provided for herein and supersedes all prior agreements and
negotiations between the parties with respect to the subject matter of this Agreement.
9.Notices. Any notice, payment or instrument required or permitted by this
Agreement to be given or delivered to either party shall be deemed to have been received when
personally delivered or seventy-two hours following deposit of the same in any United States Post
Office in California, registered or certified, postage prepaid, addressed as follows:
City/District:City of Lake Elsinore
130 South Main Street
Lake Elsinore, CA 92530
Attn: Assistant City Manager
Elsinore Valley Municipal Water District:
Elsinore Valley Municipal Water District
P.O. Box 3000
31315 Chaney Street
Lake Elsinore, CA 92531
Attn: Director of Strategic Programs
Company:SAM-RUNNING DEER, LLC
1200 Quail Street, Suite 220
Newport Beach, CA 92660
Attn: Erik W. Lunde
Each party may change its address for delivery of notice by delivering written
notice of such change of address to the other parties hereto.
10.Exhibits. All exhibits attached hereto are incorporated into this Agreement by
reference.
11.Severability. If any part of this Agreement is held to be illegal or unenforceable by
a court of competent jurisdiction, the remainder of this Agreement shall be given effect to the
fullest extent reasonably possible.
12.Governing Law and Venue. This Agreement and any dispute arising hereunder
shall be governed by and interpreted in accordance with the laws of the State of California. In the
event of any legal action to enforce or interpret this Agreement, the sole and exclusive venue
shall be a court of competent jurisdiction located in the County of Riverside, California, and the
parties hereto agree to and do hereby submit to the jurisdiction of such court, notwithstanding
Code of Civil Procedure Section 394. Furthermore, the parties specifically agree to waive any
and all rights to request that an action be transferred for trial to another county.
13.Waiver. Failure by a party to insist upon the strict performance of any of the
provisions of this Agreement by the other parties hereto, or the failure by a party to exercise its
7
rights upon the default of another party, shall not constitute a waiver of such party’s right to insist
and demand strict compliance by such other parties with the terms of this Agreement thereafter.
14.No Third Party Beneficiaries. No person or entity other than the District when and
if formed shall be deemed to be a third party beneficiary hereof, and nothing in this Agreement
(either express or implied) is intended to confer upon any person or entity, other than the Water
District, the City, the District and the Company (and their respective successors and assigns), any
rights, remedies, obligations or liabilities under or by reason of this Agreement.
15.Assignment. The Company may assign all or any of its rights pursuant to this
Agreement to a purchaser of all or any portion of the Developer Property. Such a purchaser and
assignee shall, as a condition to taking an assignment of such rights, enter into an assignment
and assumption agreement with the City and Company, in a form reasonably acceptable to
Company and the City, whereby such rights assigned are specified and such purchaser agrees,
except as may be otherwise specifically provided therein, to assume the obligations of the
Company pursuant to this Agreement and to be bound thereby.
16.Termination. This Agreement shall terminate on March 1, 2023, if Bonds have not
been issued prior to such date, unless extended by all the parties hereto.
17.Singular and Plural; Gender. As used herein, the singular of any word includes
the plural, and terms in the masculine gender shall include the feminine.
18.Counterparts. This Agreement may be executed in counterparts, each of which
shall be deemed an original, but all of which shall constitute but one instrument.
8
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and
first year written above.
CITY OF LAKE ELSINORE, a political subdivision
of the State of California
By:
Assistant City Manager
ATTEST:
By:
Susan M. Domen, CMC, City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY OF THE CITY OF LAKE ELSINORE
By:
Barbara Z. Leibold, City Attorney
ELSINORE VALLEY MUNICIPAL WATER
DISTRICT
By:
Its:________________
SAM-RUNNING DEER, LLC, an Oregon limited
liability company
By:
Its:
A-1
EXHIBIT A
DESCRIPTION OF PROPERTY
Real property in the City of Lake Elsinore, County of Riverside, State of California, described as
follows:
Assessor’s Parcel Nos:
394-120-008
394-120-013
B-1
EXHIBIT B
DESCRIPTION OF WATER DISTRICT FACILITIES
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
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
“Facilities”), 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.
D-1
EXHIBIT C
DISBURSEMENT REQUEST FORM
1.City of Lake Elsinore Community Facilities District No. 2006-8 (RUNNING DEER
ESTATES) (“CFD No. 2006-8”) is hereby requested to pay from the Water District Facilities
Account of the Acquisition and Construction Fund established by the City Council of the City of
Lake Elsinore (the “City”) in connection with its CFD No. 2006-8 Series _____ Special Tax Bonds
(the “Bonds”), to the Elsinore Valley Municipal Water District (the “Water District”), as Payee, the
sum set forth below in payment of project costs described below.
2.The undersigned certifies that the amount requested has been expended or
encumbered for the purposes of constructing and completing Water District Facilities. The
amount requested is due and payable under, or is encumbered for the purpose of funding, a
purchase order, contract or other authorization with respect to the project costs described below
and has not formed the basis of a prior request or payment. In the event that the Water District
does not disburse any Bond proceeds received for disbursement to third parties within five
banking days of receipt, the Water District agrees to trace and remit to CFD No. 2006-8 all
earnings, if any, in excess of the yield on the Bonds accruing from the investment of such Bond
proceeds, from the date of receipt by the Water District of such amounts to the date of expenditure
of such amounts by payment thereof to a third party for the costs set forth below. Such remittance,
if any, shall be made each year on the earlier of the expenditure of such amounts or the
anniversary date of the transfer of the requested amounts by CFD No. 2006-8 to the Water
District.
3.Description of Water District Facilities Costs:
4.Amount requested:$______________.
5.The amount set forth is authorized and payable pursuant to the terms of the Joint
Community Facilities Agreement among the City, SAM-RUNNING DEER, LLC and the Elsinore
Valley Municipal Water District dated as of _________, 2017 (the “Agreement”). Capitalized
terms not defined herein shall have the meaning set forth in the Agreement.
6.Total payments to the Water District for the Water District Facilities from CFD No.
2006-8, including the amounts to be paid under paragraph 4 above, will not exceed the maximum
amount to be disbursed for Water District Facilities under the Agreement.
D-2
Executed by an authorized representative of the Elsinore Valley Municipal Water District.
By:
Name:
Title:
Date:
Request No.
CONCURRED BY:
___________
D-1
EXHIBIT D
PAYMENT REQUEST FORM
1.The Water District is hereby requested to submit a disbursement request to the City of
Lake Elsinore Community Facilities District No. 2006-8 (RUNNING DEER ESTATES)
(“CFD No. 2006-8”) to pay from the Water District Facilities Account of the Acquisition and
Construction Fund established by the City Council of the City of Lake Elsinore (the “City”)
in connection with its CFD No. 2006-8 Series _____ Special Tax Bonds (the “Bonds”), to
the Elsinore Valley Municipal Water District (the “Water District”), as Payee, the sum set
forth below in payment of Water District Facilities costs as described below.
2.The total amount requested herein is $______________, comprised of the following:
a. [insert dollar amount or N/A] to reimburse the undersigned (or its assigns) for
water and/or sewer capacity and connection fees previously paid for Lots ___ of Tract
____ within the District and not yet reimbursed with special taxes or Bond proceeds of the
District. [ATTACH SUPPORTING DOCUMENTATION.]
b. [insert dollar amount or N/A] to pay the Water District for water and/or sewer
capacity and connection fees relating to Lots ___ of Tract ____ within the District, which
have not yet been paid. This amount will serve as a credit to such lots against the
applicable fees.
3. CHECK APPLICABLE BOXES:
[___]1. On behalf of [ Property Owner name ], I hereby certify and represent that the
above-referenced amount of $_______________ in section 2a was previously paid to
Water District by [Property Owner name], for water and/or sewer capacity and connection
fees imposed by Water District, and such amounts have not been previously reimbursed
by Water District to [Property Owner name] (or to any of its successors and assigns).
[___]2. On behalf of [ Property Owner name ], I hereby certify and represent that the
above-referenced amount of $___________ in section 2b is currently due to Water District
from [ Property Owner name ] for water and/or sewer capacity and connection fees
imposed by Water District on [Property Owner name] for the lots identified.
Dated: _______________, 20__By:________________________________
Authorized Representative of
[Property Owner name]
Name: _____________________________
Title: ______________________________
1
PETITION TO THE CITY COUNCIL OF THE CITY OF LAKE
ELSINORE REQUESTING INSTITUTION OF CHANGE
PROCEEDINGS FOR CITY OF LAKE ELSINORE COMMUNITY
FACILITIES DISTRICT NO. 2006-8 (RUNNING DEER ESTATES)
1.The undersigned (the “Owner”) is the owner of more than 10% of the land
described in Exhibit A hereto (the “Property”), which land is all of the land included within the
boundaries of City of Lake Elsinore Community Facilities District No. 2006-8 (Running Deer
Estates) (the “District”). The Property is located within the City of Lake Elsinore (the “City”) in
the County of Riverside.
2.The Owner requests, pursuant to Chapter 2.5 (commencing with Section 53311),
Part 1, Division 2, Title 5, of the Government Code of the State of California, commonly known
as the “Mello-Roos Community Facilities Act of 1982” (the “Act”), that the City Council of the
City (the “City Council”) institute proceedings to (i) approve the new rate and method of
apportionment for the District, attached hereto as Exhibit B (the “Amended and Restated Rate
and Method”); (ii) extend the term of the Special Tax for Facilities (as defined in the Amended
and Restated Rate and Method) to Fiscal Year 2058-59 and (iii) to revise the services (the
“Services”) to be provided by the District to include the services described in the definition
“Services” in the Amended and Restated Rate and Method, which services shall be in addition
to all services previously authorized to be provided by the District.
3.The Owner further requests that the City Council authorize the levy of special
taxes in accordance with the Amended and Restated Rate and Method in the District to pay the
costs of the facilities to be financed by the District and the Services and the incidental costs of
the District, and to pay principal of, interest and premium, if any, on the bonds in order to
contribute to the financing of facilities by the District.
4.The Owner further requests that, upon the sale of bonds, the City Council, as
legislative body of the District, annually levy special taxes for the Facilities on the property within
the District for the construction, acquisition and rehabilitation of the Facilities, for the payment of
the aggregate amount of principal of and interest owing on the bonds in each fiscal year,
including the maintenance of reserves therefor, and for the payment of administrative expenses
of the District.
Dated: February __, 2018
SAM-RUNNING DEER LLC,
an Oregon limited liability company
By:
Name:
Title:
A-1
EXHIBIT A
LEGAL DESCRIPTION
Real property in the City of Lake Elsinore, County of Riverside, State of California, described as
follows:
Assessor’s Parcel Nos:
394-120-008
394-120-013
B-1
EXHIBIT B
PROPOSED AMENDED AND RESTATED
RATE AND METHOD OF APPORTIONMENT OF
CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2006-8 (RUNNING DEER ESTATES)
PROJECT MAP
CFD NO. 2006-8 (RUNNING DEER)
CHANGE PROCEEDINGS