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HomeMy WebLinkAboutCC Reso No 2018-057 CFD No. 2018-1 Incur Bonded Indebtedness (Wasson Canyon II)RESOLUTION NO. 2018- 057 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2018-1 OF THE CITY OF LAKE ELSINORE (WASSON CANYON II) DETERMINING THE NECESSITY TO INCUR BONDED INDEBTEDNESS IN AN AMOUNT NOT- TO EXCEED $12,000,000 WITHIN COMMUNITY FACILITIES DISTRICT NO. 2018-1 OF THE CITY OF LAKE ELSINORE (WASSON CANYON II) AND CALLING AN ELECTION THEREIN Whereas, on February 13, 2018, the City Council (Council) of the City of Lake Elsinore (City) adopted Resolution No. 2018-032, stating its intention to form Community Facilities District No. 2018-1 of the City of Lake Elsinore (Wasson Canyon II) (CFD No. 2018-1 or the District) pursuant to the Mello -Roos Community Facilities Act of 1982, as amended (Act); and, Whereas, on February 13, 2018, the Council also adopted Resolution No. 2018-033, stating its intention to incur bonded indebtedness in the amount of up to $12,000,000 within proposed CFD No. 2018-1 to finance (1) the purchase, construction, modification, expansion, improvement or rehabilitation of public facilities identified in Attachment B to Resolution No. 2018-032, and (2) the incidental expenses to be incurred in financing such public facilities and services and forming and administering the District, as identified in Attachment B to Resolution No. 2018-032; and, Whereas, notice was published as required by law relative to the intention of the Council to form proposed CFD No. 2018-1 and to incur bonded indebtedness in the amount of up to $12,000,000 within the boundaries of proposed Community Facilities District No. 2018-1; and, Whereas, on March 27, 2018, this Council conducted a noticed public hearing to determine whether it should proceed with the formation of CFD No. 2018-1, issue bonds to pay for the facilities and incidental expenses described in Resolution No. 2018-032 and authorize the Rate and Method of apportionment of a special tax to be levied within CFD No. 2018-1 for the purposes described in Resolution No. 2018-032; and, Whereas, at said hearing all persons desiring to be heard on all matters pertaining to the formation of CFD No. 2018-1, the levy of a special tax and the issuance of bonds to pay for the cost of the proposed facilities, the levy of the special tax to pay for the proposed services and incidental expenses were heard and a full and fair hearing was held; and, Whereas, the Council subsequent to such hearing adopted Resolution No. 2018-057 establishing CFD No. 2018-1 (Resolution of Formation) and authorizing the financing of the public facilities (Facilities) and the incidental expenses (Incidental Expenses) described in Attachment B thereto; and, Whereas, the 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. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS: CC Reso. No. 2018-057 Page 2 of 4 Section 1. It is necessary to incur bonded indebtedness in a maximum aggregate principal amount not to exceed $12,000,000 within CFD No. 2018-1. 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 CFD No. 2018-1, 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 CFD No. 2018-1, other than property exempted from the special tax pursuant to the provisions of the rate and method of apportionment attached to Resolution No. 2018-032 as Attachment C, 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. 2018-1 on the proposition of incurring the bonded indebtedness. The proposition relative to incurring bonded indebtedness in the maximum aggregate principal amount of $12,000,000 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 CFD No. 2018-1 on the propositions of incurring the bonded indebtedness, authorizing the levy of the special tax and setting an appropriations limit shall be March 27, 2018, 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 March 27, 2018, 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 March 27, 2018. 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 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 2 CC Reso. No. 2018-057 Page 3 of 4 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. 2018-1. 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 February 15, 2018. Accordingly, since there were fewer than 12 registered voters within the District for each of the 90 days preceding March 27, 2018, 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. 2018-1, 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 March 27, 2018, which waiver is on file with the City Clerk. Section 9. This Resolution shall be effective upon its adoption. Passed and Adopted on this 27th day of March 2018. Attest: Su omen, 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. 2018-057 was adopted by the City Council of the City of Lake Elsinore, California, at the Regular meeting of March 27, 2018 and that the same was adopted by the following vote: AYES: Council Members Hickman, Magee and Tisdale; Mayor Pro -Tem Manos and Mayor Johnson NOES: None ABSENT: None ABSTAIN: None Susan M. Domen, M C City Clerk ATTACHMENT A BALLOT PROPOSITIONS COMMUNITY FACILITIES DISTRICT NO. 2018-1 OF THE CITY OF LAKE ELSINORE (WASSON CANYON II) SPECIAL TAX AND SPECIAL BOND ELECTION March 27, 2018 PROPOSITION A: Shall Community Facilities District No. 2018-1 of the City of Lake Elsinore (Wasson Canyon II) (the "District") incur an indebtedness and issue bonds in the maximum principal amount of $12,000,000, with YES interest at a rate or rates not to exceed the maximum interest rate permitted by law, to finance the Facilities and NO_ the Incidental Expenses described in Resolution No. 2018-032 of the City Council of the City of Lake Elsinore? PROPOSITION B: Shall a special tax with a rate and method of apportionment as provided in Resolution No. YES 2018-032 of the City Council of the City of Lake Elsinore be levied to pay for the Facilities, Incidental Expenses and NO_ other purposes described in Resolution No. 2018-032, including the payment of the principal of and interest on bonds issued to finance the Facilities and Incidental Expenses? PROPOSITION C: For each year commencing with Fiscal Year 2017-18, shall the appropriations limit, as YES defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, for Community Facilities NO District No. 2018-1 be an amount equal to $5,000,000?